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3/18/1997
Citi i; � ���nAGENDA Tuesday, March 18, 1997 5:00 p.m. Worksession - Room CC -3&5 6:30 p.m. Regular Meeting South Coast Air Quality Management District Auditorium 21865 East Copley Drive Diamond Bar, California Mayor Bob Huff Mayor Pro Tem Carol Herrera Council Member Eileen Ansari Council Member Clair Harmony Council Member City Manager City Attorney City Clerk Gary Werner Terrence L. Belanger Michael Jenkins Lynda Burgess Copies of staff reports, or other written documentation relating to agenda items, are on file in the Office of the City Clerk, and are available for public inspection. If you have questions regarding an agenda item, please contact the City Clerk at (909) 860-2489 during regular business hours. In an effort to comply with the requirements of Title 11 of the Americans with Disabilities Act of 1990, the City of Diamond Bar requires that any person in need of any type of special equipment, assistance or accommodation(s) in order to communicate at a City public meeting, must inform the City Clerk a minimum of 72 hours prior to the scheduled meeting. Please refrain from smoking, eating or drinking, Tr in the Council Chambers. The City of Diamond Bar uses recycled paper and encourages you to do the same. PUBLIC INPUT The meetings of the Diamond Bar City Council are open to the public. A member of the public may address the Council on the subject of one or more agenda items and/or other items of which are within the subject matter jurisdiction of the Diamond Bar City Council. A request to address the Council should be submitted in writing to the City Clerk. As a general rule the opportunity for public comments will take place at the discretion of the Chair. However, in order to facilitate the meeting, persons who are interested parties for an item may be requested to give their presentation at the time the item is called on the calendar. The Chair may limit the public input on any item or the total amount of time allocated for public testimony based on the number of people requesting to speak and the business of the Council. Individuals are requested to refrain from personal attacks toward Council Members or other persons. Comments which are not conducive to a positive business meeting environment are viewed as attacks against the entire City Council and will not be tolerated. If not complied with, you will forfeit your remaining time as ordered by the Chair. Your cooperation is greatly appreciated. In accordance with Government Code Section 54954.3(x) the Chair may from time to time dispense with public comment on items previously considered by the Council. (Does not apply to Committee meetings) In accordance with State Law (Brown Act), all matters to be acted on by the City Council must be posted at least 72 hours prior to the Council meeting. In cases of emergency or when a subject matter arises subsequent to the posting of the agenda, upon making certain findings, the Council may act on an item that is not on the posted agenda. CONDUCT IN THE CITY COUNCIL CHAMBERS The Chair shall order removed from the Council Chambers any person who commits the following acts in respect to a regular or special meeting of the -Diamond Bar City Council. A. Disorderly behavior toward the Council or any member of the thereof, tending to interrupt the due and orderly course of said meeting. B. A breach of the peace, boisterous conduct or violent disturbance, tending to interrupt the due and orderly course of said meeting. C. Disobedience of any lawful order of the Chair, which shall include an order to be seated or to refrain from addressing the Board; and D. Any other unlawful interference with the due and orderly conduct of said meeting. INFORMATION RELATING TO AGENDAS AND ACTIONS OF THE COUNCIL Agendas for the regular Diamond Bar City Council meetings are prepared by the City Clerk and are available 72 hours prior to the meeting. Agendas are available electronically and may be accessed by a personal computer through a phone modem. Every meeting of the City Council is recorded on cassette tapes and duplicate tapes are available for a nominal charge. ADA REQUIREMENTS A cordless microphone is available for those persons with mobility impairments who cannot access the public speaking area. Sign language interpreter services are also available by giving notice at least three business days in advance of the meeting. Please telephone (909) 860-2489 between 8 a.m. and 5 p.m. Monday through Friday. HELPFUL PHONE NUMBERS Copies of Agenda, Rules of the Council, Cassette Tapes of Meetings (909) 860-2489 Computer Access to Agendas (909) 860 -LINE General Information (909) 860-2489 NOTE: ACTION MAY BE TAKEN ON ANY ITEM IDENTIFIED ON THE AGENDA. THIS MEETING IS BEING BROADCAST LIVE BY JONES INTERCABLE FOR AIRING ON CHANNEL 12, AND BY REMAINING IN THE ROOM, YOU ARE GIVING YOUR PERMISSION TO BE TELEVISED. THIS MEETING WILL BE RE -BROADCAST ON THE SATURDAY FOLLOWING THE COUNCIL MEETING AT 10:00 A.M. ON CHANNEL 12. CITY COUNCIL WORK SESSION - SUBJECT: 1. CLOSED SESSION: Next Resolution No. 97-22 Next Ordinance No. 01(1997) 5:00 p.m., March 18, 1997, AQMD Rooms CC 3 & 5 Council Goals and Objectives 6:00 p.m., March 18, 1997, AQMD Rooms CC 3 & 5 CONFERENCE WITH REAL PROPERTY NEGOTIATOR (G.C. SECTION 54956.8): Property: Negotiating Parties: Under Negotiation: 2. CALL TO ORDER: PLEDGE OF ALLEGIANCE: INVOCATION: ROLL CALL: 1370 Valley Vista, Suite 100, Diamond Bar Ahmanson Developments/Home Savings of America Terms of lease agreement for office space 6:30 p.m. March 18, 1997 Mayor Huff Reverend Pac Chan, Chinese Evangelical Free Church Council Members Ansari, Harmony, Werner, Mayor Pro Tem Herrera, Mayor Huff 3. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 3.1 Proclaiming April, 1997 as Home Composting Month and recognizing Earth Day Celebration Events. 3.2 Presentation of City Tile to Lt. Dennis Curran in appreciation for his services to the City of Diamond Bar. 3.3 Presentation of City Tile to Lt. Wendell Henson on his retirement from Los Angeles County Sheriff Department, Walnut Station. 3.4 Presentation of City Tile to Deputy Larry Luter in appreciation for his services to the City of Diamond Bar. MARCH 18, 1997 PAGE 2 4. PUBLIC COMMENTS: "Public Comments" is the time reserved on each regular meeting agenda to provide an opportunity for members of the public to directly address the Council on Consent Calendar items or matters of interest to the public that are not already scheduled for consideration on this agenda. Although the City Council values your comments, pursuant to the Brown Act, the Council generally cannot take any action on items not listed on the posted agenda. Please complete a Speakers Card and give it to the City Clerk (completion of this form is voluntary). There is a five minute maximum time limit when addressing the City Council. 5. SCHEDULE OF FUTURE EVENTS: 5.1 TOWN HALL MEETING - March 22, 1997 - 9:00 a.m. to Noon, AQMD Auditorium, 21865 E. Copley Dr. - discussion of Development Code. 5.2 PARKS MASTER PLAN WORKSHOP - March 24, 1997 - 7:00 p.m., Heritage Park Community Center, 2900 S. Brea Canyon Rd. 5.3 PLANNING COMMISSION MEETING - March 25, 1997 - 7:00 p.m., AQMD Auditorium, 21865 E. Copley Dr. 5.4 PARKS & RECREATION COMMISSION - March 27, 1997 - 7:00 p.m., AQMD Board Hearing Room, 21865 E. Copley Dr. 5.5 CITY COUNCIL MEETING - April 1, 1997 - 6:30 p.m., AQMD Auditorium, 21865 E. Copley Dr. 5.6 CITY ANNIVERSARY CELEBRATION - April 20, 1997 - Peterson Park 6. CONSENT CALENDAR: 6.1 APPROVAL OF MINUTES - 6.1.1 Work Session Minutes of March 4, 1997 - Approve as submitted. 6.1.2 Regular Meeting of March 4, 1997 - Approve as submitted. Requested by: City Clerk 6.2 PARKS AND RECREATION COMMISSION MINUTES: 6.2.1 Regular Meeting of December 19, 1996 - Receive & File. 6.2.2 Regular Meeting of January 23, 1997 - Receive & File. Requested by: Community Services Director MARCH 18, 1997 PAGE 3 6.3 VOUCHER REGISTER - Approve Voucher Register dated March 18, 1997 in the amount of $237,652.83. Requested by: City Manager 6.4 TDA ARTICLE 3 (SB821) ALLOCATION FOR FISCAL YEAR 1996-97 - For FY 1996-97, the L.A. County Metropolitan Transportation Authority allocated $22,945 to the City for construction of various pedestrian and bicycle - related facilities and projects. The City is permitted to accumulate funds, which has been done in the past, to use on Capital Improvement projects. Recommended Action: It is recommended that the City Council reserve the City's $22,945 TDA Article 3 (SB 821) allocation for FY 1996-97. Requested by: City Engineer 6.5 INCREASE IN CONTRACT AMOUNT FOR LEGAL SERVICES - Due to the length and complexity of the Oak Tree Lanes litigation and costs related thereto, a request for additional monies is necessary to complete the representation of the City regarding the Days Hotel litigation. The City entered into an amended agreement with Michael B. Montgomery for $30,000. Staff is requesting an increase in the contract for an additional $5,000. The total cost for legal services related to these matters is $35,000. Recommended Action: It is recommended that the City Council authorize an additional $5,000 for special legal services by Michael B. Montgomery related to the Days Hotel Transient Occupancy Tax (TOT) lawsuit. Requested by: City Manager 6.6 AWARD OF ENGINEERING DESIGN SERVICES FOR AMBUSHERS STREET AND MEADOWGLEN ROAD PUBLIC STREET IMPROVEMENTS - On February 14, 1997, proposals were solicited for design services for street improvements on Ambushers St. and Meadowglen Rd. On February 28, 1997, four proposals, from Hall & Forman Inc., Dewan Lundin & Associates, RKA Civil Engineers, and FGB-Friedrich & Associates, were received and opened. Recommended Action: It is recommended that the City Council award an engineering design services contract to Dewan Lundin & Associates for Ambushers St. and Meadowglen Rd. public street improvements in an amount not -to -exceed $16,535 and provide a contingency amount of $2,000 for contract amendment(s) to be approved by the City Manager for a total authorization of $18,535. Requested by: City Engineer MARCH 18, 1997 PAGE 4 7. PUBLIC HEARINGS: None 8. OLD BUSINESS: 8.1 AN ORDINANCE OF THE CITY OF DIAMOND BAR AUTHORIZING THE RENEWAL OF A CABLE TELEVISION FRANCHISE AGREEMENT BETWEEN THE CITY AND JONES INTERCABLE, INC. AND CONCURRENTLY AUTHORIZING THE ASSIGNMENT OR TRANSFER OF THAT FRANCHISE AGREEMENT BY JONES INTERCABLE, INC. TO CITIZENS CENTURY CABLE TELEVISION VENTURE - On March 4, 1997, the City Council conducted a Workshop to discuss the Cable Television Franchise Renewal Agreement. The City and Jones Intercable/Century Communications Corp. have been in the process of negotiating the renewal of the Cable Television Franchise. The renewal process for cable franchises is governed through Federal Regulations. During the process of the negotiations, the City received an application for transfer of the existing franchise from Jones Intercable to Citizens Century Cable Television Venture. Recommended Action: It is recommended that the City Council approve for first reading by title only and waive full reading of Ordinance No. 97 -XX "An Ordinance of the City of Diamond Bar Authorizing the renewal of a cable television franchise agreement between the City and Jones Intercable, Inc. and concurrently authorizing the assignment or transfer of that franchise agreement by Jones Intercable, Inc. to Citizens Century Cable Television Venture. Requested by: City Manager 9. NEW BUSINESS: 9.1 PARKS AND RECREATION COMMISSION VACANCY APPOINTMENT - Due to the passing of Oscar Law, a new Commissioner must be appointed. Requested by: Councilmember Werner RECESS TO REDEVELOPMENT AGENCY MEETING 1. CALL TO ORDER: ROLL CALL: 2. PUBLIC COMMENTS: 3. CONSENT CALENDAR: Next Resolution R-97-01 Chairman Werner Agency Members Ansari, Harmony, Herrera, VC/Huff, C/Werner MARCH 18, 1997 PAGE 5 3.1 APPROVAL OF MINUTES - Regular Meeting of March 4, 1997 - Approve as submitted. Requested by: Agency Secretary 3.2 VOUCHER REGISTER - Approve Voucher Register dated March 18, 1997 in the amount of $25,152.44. Requested by: Executive Director 4. PUBLIC HEARING: None 5. OLD BUSINESS: None 6. NEW BUSINESS: 6.1 RESOLUTION NO. R -97 -XX: A RESOLUTION OF THE DIAMOND BAR REDEVELOPMENT AGENCY RECEIVING THE PROPOSED REDEVELOPMENT PLAN FOR THE DIAMOND BAR ECONOMIC REVITALIZATION AREA, AND AUTHORIZING TRANSMITTAL OF THE PROPOSED REDEVELOPMENT PLAN TO AFFECTED TAXING AGENCIES, AND PERSONS AND ORGANIZATIONS WITHIN THE PROJECT AREA AND SUBMITTAL TO THE PLANNING COMMISSION FOR REPORT AND RECOMMENDATION - The Redevelopment Agency has undertaken proceedings for adoption of the Redevelopment Plan for its Economic Revitalization Area ("Redevelopment Plan"). On November 19, 1996, the Agency adopted Resolution No. R-96-09, approving the selection of the area within the boundaries of the Project Area and the Preliminary Plan for the Project. The Resolution further directed preparation of a redevelopment plan for the Project and noticing of affected taxing agencies of the proposed adoption of the Redevelopment Plan and Project Area. Recommended Action: It is recommended that the Board of Directors adopt Resolution No. R -97 -XX receiving the proposed Redevelopment Plan for the Diamond Bar Economic Revitalization Area and authorize transmittal of the proposed Redevelopment Plan to affected taxing agencies, and persons and organizations within the project area and submittal to the Planning Commission for report and recommendation. Requested by: Executive Director 6.2 RESOLUTION NO. R -97 -XX: A RESOLUTION OF THE DIAMOND BAR REDEVELOPMENT AGENCY APPROVING DRAFT RULES GOVERNING PARTICIPATION AND PREFERENCES BY PROPERTY OWNERS, OPERATORS OF BUSINESSES, AND BUSINESS TENANTS IN THE DIAMOND BAR ECONOMIC REVITALIZATION AREA AND DIRECTING THAT SUCH RULES BE MADE AVAILABLE FOR PUBLIC INSPECTION - Recommended Action: It is recommended that the Board of Directors adopt Resolution No. R -97 -XX approving the draft rules governing participation and preferences by MARCH 18, 1997 PAGE 6 property owners, operators of businesses, and business tenants in the Economic Revitalization Area and direct that such rules be made available for public inspection. Requested by: Executive Director 6.3 RESOLUTION NO. R -97 -XX: A RESOLUTION OF THE DIAMOND BAR REDEVELOPMENT AGENCY APPROVING DRAFT GENERAL RELOCATION RULES (METHOD OF RELOCATION PURSUANT TO SECTION 33411 OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW) FOR THE DIAMOND BAR ECONOMIC REVITALIZATION AREA - Recommended Action: It is recommended that the Board of Directors adopt Resolution No. R -97 -XX approving draft General Relocation Rules (Method of Relocation Pursuant to Section 33411 of the California Community Redevelopment Law) for the Economic Revitalization Area. Requested by: Executive Director 6.4 RESOLUTION NO. R -97 -XX: A RESOLUTION OF THE DIAMOND BAR REDEVELOPMENT AGENCY APPROVING THE PRELIMINARY REPORT FOR THE DIAMOND BAR ECONOMIC REVITALIZATION AREA AND DIRECTING THE TRANSMITTAL OF THE PRELIMINARY REPORT TO THE AFFECTED TAXING AGENCIES - Recommended Action: It is recommended that the Board of Directors adopt Resolution No. R -97 -XX approving the Preliminary Report for the Economic Revitalization Area and directing transmittal of the Preliminary Report to affected Taxing Agencies. Requested by: Executive Director 7. AGENCY MEMBER COMMENTS: 8. AGENCY SUB -COMMITTEE REPORTS: REDEVELOPMENT AGENCY ADJOURNMENT: RECONVENE CITY COUNCIL MEETING: 10. COUNCIL SUB -COMMITTEE REPORTS: 11. 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. 12. ADJOURNMENT: CITY OF DIAMOND BAR NOTICE OF PUBLIC MEETING AND AFFIDAVIT OF POSTING STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF DIAMOND BAR ) The Diamond Bar City Council will hold a Work Session in Room CC- 3 & 5 at 5:00 p.m., and a Regular Meeting in the AQMD Auditorium, located at 21865 E. Copley Drive, Diamond Bar, California at 6:30 p.m. on March 18, 1997. I, LYNDA BURGESS declare as follows: I am the City Clerk in the City of Diamond Bar; that a copy of the agenda for the Work Session and Regular Meeting of the Diamond Bar City Council, to be held on March 18, 1997 was posted at their proper locations. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this Notice and Affidavit was executed this 11th day of March, 1997, at Diamond Bar, California. /s/ Lynda Burgess Lynda Burgess City Clerk City of Diamond Bar 1.11108 1) KA It lam M -s APRIL 1997 HOME COMPOSTING Mf and Recognizing Earth Day Celebration WHEREAS, the City of Diamond Bar is concerne, �'' ng environmental awareness and educating its citizens on strategies of wast" td WHEREAS, the City of Diamond Bar is mandated by 9. a solid waste diversion goal of 50% by the year 2000, and WHEREAS, concerned citizens of Diamond Bar have kic d celebration events by planting 100 tree seedlings on the undeveloped slo 4_ of Peterson Park, and WHEREAS, the City of Diamond Bar plans to recogniz r' City's Anniversary Celebration to take place April 20, 1997, and w+r WHEREAS, the City of Diamond Bar has organized L lor workshops for residents in the month of April. t NOW, THEREFORE, the City Council of the City of proclaims the month of April "Home Composting Month" and co conscious events planned around Earth Day. DATE: March 18, 1997 - ,W . RE UTION NO. 9)K -XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR DECLARING THE MONTH OF APRIL HOME COMPOSTING MONTH AND RECOGNIZING EARTH DAY CELEBRATION EVENTS WHEREAS, the City of Diamond Bar is concerned with raising environmental awareness and educating its citizens on strategies of waste reduction, and WHEREAS, the City of Diamond Bar is mandated by AB 939 to reach a solid waste diversion goal of 50% by the year 2000, and WHEREAS, Earth Day is nationally recognized on April 22, and WHEREAS, concerned citizens of Diamond Bar have kicked -off Earth Day celebration events by planting -t2,5 tree seedlings on the undeveloped slope on the east side of Peterson Park, and 106 WHEREAS, the City of Diamond Bar plans to recognize Earth Day at the City's Anniversary Celebration to take place April 20, 1997, and WHEREAS, the City of Diamond Bar has organized two home composting workshops for residents in the month of April. NOW, THEREFORE, BE IT RESOLVED THAT the City of Diamond Bar declares the month of April "Home Composting Month" and recognizes the earth conscious events planned around Earth Day mentioned herein. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Diamond Bar thisi day of _, 1996. MAYOR 1, LYNDA BURSClerk of the City of Diamond Bar do hereby certify that the foregoing Resolu41 t on as passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on day of , 1997, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAINED: COUNCILMEMBERS: ATTEST: City Clerk of the City of Diamond Bar VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL TO: CITY CLERK FROM: ` /dam G PA") ADDRESS: ORGANIZATION: ------- AGENDA #/SUBJECT• c - U i DATE: 3---` f--- 9,7 PHONE: tf11 �/%,�7 7 I expect to address the Council on the subject agenda item. Please have the Council Minutes reflect my name and address as written above. kg Signature VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL TC CITY CLERK FR )M: ���J �-/� �'%/��5���� DATE: AC )RE -SS: PHONE: OF aANIZATION: n AG =N IDA #/S U BJ ECT: I expect to address the Council on the subject agenda item. Please have the Council Minutes reflect my narne and address as written above. Signature VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL TO CITY CLERK FR DM: '/- / )k- "1-�5111/V!22 sS Z DATE: AD -DRESS: PHONE: ORGANIZATION: AGENDA #/SUBJECT: = V�=Zd��''� I expect to address the Council on the subject agenda item. Please have the Council Minutes reflect my name and address as written above. Signature CITY OF DIAMOND BAR CITY COUNCIL WORKSESSION MARCH 4, 1997 �,�► CALL TO ORDER: Mayor Huff called the Worksession to order at 4:45 p.m. in Room CC -2 of the SCAQMD, 21865 E. Copley Dr., Diamond Bar, California. Present: Council Members Ansari, Harmony, Werner, MPT/Herrera, M/Huff Also present were: Terrence L. Belanger, City Manager; William Rudell, Assistant City Attorney; Kellee Fritzal, Assistant to City Manager and Lynda Burgess, City Clerk. DISCUSSION REGARDING TRANSFER FROM JONES INTERCABLE TO CENTURY CABLE: CM/Belanger - Cable legislation has limited local government's ability to negotiate certain aspects of cable franchise agreements. Also sets forth a presumption of renewal for the existing cable company. Areas of negotiations are rates, programming, franchise fees. Proposed agreement is for 10 years and system must be upgraded into two tiers. Within 2 years of contract approval, provider must install 7 fiber backbone hub sites to allow for 3 additional channels. Within 6 years of the installation of the 7 backbone hubs, provider will complete a rebuild of the cable system to not less than 550 Mhz or 78 channels (an increase of 21 channels). Special event coverage between 10 to 15 community events or financial contribution for purchase of equipment is also provided for in the proposed agreement. ACA/Rudell - Renewal of the franchise and transfer of the franchise from Jones to Century are both included in the proposed franchise agreement. If the City or the franchising authority fails to act on approval of the transfer within 120 days, the transfer is deemed approved. Century would obtain the same rights that Jones currently has. In response to C/Harmony, he stated that Council could deny approval of the transfer but Council would have to make very strict and specific findings. Also could deny approval of the franchise but again would have to have very strict and specific findings. C/Harmony requested highlighting of the achievements of the negotiations to provide a much more sophisticated cable system. ACA/Rudell pointed out that the achievement is the commitment to add another 21 channels by the time the system is rebuilt. C/Harmony asked who the chief negotiator was and who had the most technical expertise? Wants the system upgraded now --not 10 years from now. C/Werner - Felt Council is chief negotiator -- looking for staff to provide information on options available. MARCH 4, 1997 PAGE 2 C/Ansari - Looking for local origination programming. Would like to see a studio and a place to conduct interviews. Wants comparison of what's available in the market with what the City is being offered. C/Werner - Wants a pro forma of financial data. Tom Carlock, Legal Counsel for Jones - Problem of control over local access programming. 10-15 events per year would be only those that the City would request. Janet Spatz, General Manager, Jones Intercable - current lunchroom can be used as a studio when needed. Brea, Chino Hills and Anaheim facilities also have studios. Cost of putting together another studio in D.B. would be passed on to the subscribers. Willing to go up to 20-25 community events. C/Ansari - Requested copies of tapes of local access programming from other cities. CM/Belanger - D.B.H.S. also has a very well-equipped studio facility available. C/Werner - memo lists cities in and around the area with their rates. ACA/Rudell - Cities taking a hard position against cable companies when they are requested to review and approve a franchise transfer agreement. ADJOURNMENT: M/Huff adjourned the meeting at 6:04 p.m. ATTEST: Mayor LYNDA BURGESS, City Clerk K MINUTES OF THE CITY COUNCIL 40+ REGULAR MEETING OF THE CITY OF DIAMOND BAR MARCH 4, 1997 CLOSED SESSION: 6:05 p.m., March 4, 1997, AQMD Room CC -2 CONFERENCE WITH REAL PROPERTY NEGOTIATOR (G.C. Section 54956.8): Property: Former Water District property, westerly side of Brea Canyon Rd. north of Pathfinder Rd. Negotiating Parties: City of Diamond Bar and Diamond Crest Estates, LLC Under Negotiation: Material terms of the agreement No reportable action taken. CALL TO ORDER: Mayor Huff called the meeting to order at 6:43 p.m. in the SCAQMD Auditorium, 21865 E. Copley Drive, Diamond Bar, California. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Brownie Troops 154 and 264. INVOCATION: Pastor Dale Goddard, Calvary Chapel, Golden Springs ROLL CALL: Council Members Ansari, Harmony, Werner, Mayor Pro Tem Herrera and Mayor Huff. Also present were: Terrence L. Belanger, City Manager; Frank Usher, Assistant City Manager; Michael Jenkins, City Attorney; James DeStefano, Community Development Director; George Wentz, Public Works Director; Bob Rose, Community Services Director and Lynda Burgess, City Clerk. 3. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 3.1 Proclaimed March 12, 1997 as the 85th Anniversary of Girl Scouts of the USA. 3.2 Proclaimed March 16-22, 1997 as "Safe Communities Week." 3.3 Presented City Tiles in recognition of services provided in organizing the City of Diamond Bar/Sanhsia Friendship Tour to Richard Callard; Nick Anis; Mei-Mei Ho; Loren Wilson, Oak Tree Lanes; James Chiu, Viewsonic Corporation. 3.4 Presented Certificates of Recognition to students for "Sister City Pen Pal Contest" sponsored by Pomona and Walnut Unified School Districts - Presentations were made with the assistance of members of the Walnut MARCH 4, 1997 PAGE 2 Valley Unified School District Board of Trustees, Dr. Ronald Hockwalt, Superintendent and Debra Clifford, Teacher of the Year. RECESS: M/Huff recessed the meeting at 7:35 p.m. RECONVENE: M/Huff reconvened the meeting at 8:00 p.m. 4. PUBLIC COMMENTS: Jerry Hamilton spoke in support of local law enforcement officers. Lupe Garcia, 3532 Falcon Ridge Rd., preferred that tax dollars be spent on crime prevention, law enforcement, and beautification of D.B. She believed that enforcement of CC&R violations is a major abuse of the City's resources and expressed concern that the citizens volunteer patrol is not adequately equipped to assist with code enforcement issues. Don Gravdahl asked citizens to sign a petition demanding return of MWD rebates to customers of the Three Valleys Water Co. He encouraged the City to request the rebate. Debby O'Connor, Spanish Trails Girl Scout Council Service Team member, thanked Council for the 85th Anniversary of Girl Scouts of the USA Proclamation. She indicated thousands of girls from all areas of the United States will be staying at Cal Poly Pomona during the Memorial Day Weekend. She is in charge of Girl Scout cookie sales for D.B. and Walnut. With respect to Consent Calendar Item 6.6 a., she asked that staff proactively work with Lorbeer Middle School during the D.B. Blvd. rehabilitation project to insure the student's safety. Regarding Consent Calendar Item 6.13, she reminded Council and staff that Council voted on July 2, 1996 to approve the placement of proceeds of the property sale into a designated Parks Facilities fund. Don Schad stated that the City will plant approximately 120 trees at Peterson Park on Sunday, March 9, 1997. In addition, the park's facilities have sustained damage that will require repair at a substantial cost to the taxpayers. He asked citizens to please treat the parks facilities respectfully. He suggested the City install electrical conduit to replace the battery operated irrigation system with an electrical system during the Peterson Park ADA Retrofit program (Consent Calendar Item 6.7 a.). Martha Bruske reminded voters that with respect to Consent Calendar Item 6.13, the property in question apparently prevented the completion of the South Pointe Master Plan. Although many residents made heroic efforts to save Sandstone Canyon, the City apparently stood to benefit from its development and cared little for saving open space. MARCH 4, 1997 PAGE 3 5. SCHEDULE OF FUTURE EVENTS: 5.1 PLANNING COMMISSION - March 11, 1997 - 7:00 p.m. AQMD Auditorium, 21865 E. Copley Dr. 5.2 CHAMBER OF COMMERCE/CITY OF DIAMOND BAR MIXER - March 13, 1997, 5:30 to 7:30 p.m., City Hall, 21660 E. Copley Dr. 5.3 TRAFFIC & TRANSPORTATION COMMISSION - March 13, 1997 - 7:00 p.m., AQMD Board Hearing Room, 21865 E. Copley Dr. 5.4 TOWN HALL MEETING DEVELOPMENT CODE DISCUSSION HELD JOINTLY WITH THE PLANNING COMMISSION - March 22, 1997, 9:00 a.m. to 12 noon, AQMD Auditorium, 28165 E. Copley Dr. 5.5 PARKS AND RECREATION COMMISSION - March 27, 1997 - 7:00 p.m., AQMD Board Hearing Room, 21865 E. Copley Dr. 5.6 CITY ANNIVERSARY CELEBRATION - April 20, 1997 - 12:00 noon to 5:00 p.m. - Peterson Park. 6. CONSENT CALENDAR: C/Ansari moved, C/Wemer seconded to approve the Consent Calendar with the exception of Items No. 6.7 b. and 6.10. Motion carried by the following Roll Call vote with C/Harmony voting No on 6.13. AYES: COUNCIL MEMBERS - Ansari, Harmony, Werner, MPT/Herrera, M/Huff NOES: COUNCIL MEMBERS - None ABSENT: COUNCIL MEMBERS - None 6.1 APPROVED MINUTES - 6.1.1 City Council Work Session and Regular Meeting of February 4, 1997 as submitted. Continued from February 18, 1997. 6.1.2 Regular Meeting of February 18, 1997 as submitted. 6.2 APPROVED VOUCHER REGISTER dated March 4, 1997, in the amount of $711,091.69. 6.3 RECEIVED AND FILED TREASURER'S REPORT - January, 1997. 6.4 REDUCTION AND EXONERATION OF SUBDIVISION IMPROVEMENT BONDS FOR TRACT 47851 (Diamond Bar East Partners). a) Exonerated Bond No. 151305S of Developers Insurance Co. for reclaimed water b) Reduced Bond No. 139424S of Developers Insurance Co. for grading improvements to $50,000. c) Reduced Bond No. 139670S of Developers Insurance Co. for streambed revegetation to $50,000. MARCH 4, 1997 PAGE 4 d) Reduced Bond No. 151303S of Developers Insurance Co. for landscape/irrigation to $25,000. e) Directed the City Clerk to notify the Principal and Surety of these actions. 6.5 AMENDMENT OF SPECIAL LEGAL SERVICES CONTRACT WITH MICHAEL B. MONTGOMERY - Continued to March 18, 1997. 6.6 a. ADOPTED RESOLUTION NO. 97-13: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR APPROVING PLANS AND SPECIFICATIONS FOR THE DIAMOND BAR BOULEVARD STREET REHABILITATION PROJECT FROM GRAND AVENUE TO PALOMINO DRIVE, IN SAID CITY AND AUTHORIZING AND DIRECTING THE CITY CLERK TO ADVERTISE TO RECEIVE BIDS. b. AWARDED CONSTRUCTION ADMINISTRATION SERVICES CONTRACT TO DEWAN LUNDIN & ASSOCIATES - and authorized the Mayor to enter into a Professional Services Agreement in an amount not to exceed $33,875 and provide a contingency amount of $3,500 for contract amendment(s), to be approved by the City Manager, for a total authorization of $37,375. 6.7 a. ADOPTED RESOLUTION NO. 97-14: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR APPROVING PLANS AND SPECIFICATIONS FOR THE PETERSON PARK ADA RETROFIT IN SAID CITY AND AUTHORIZING THE CITY CLERK TO ADVERTISE TO RECEIVE BIDS. 6.8 ADOPTED RESOLUTION NO. 97-15: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, CONSENTING TO THE ESTABLISHMENT OF THE PORTION OF TEMPLE AVENUE WITHIN SAID CITY AS A PART OF THE SYSTEM OF HIGHWAYS OF THE COUNTY OF LOS ANGELES. 6.9 ADOPTED RESOLUTION NO. 97-16: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, CONSENTING TO THE ESTABLISHMENT OF THE PORTION OF DIAMOND BAR BOULEVARD WITHIN SAID CITY AS A PART OF THE SYSTEM OF HIGHWAYS OF THE COUNTY OF LOS ANGELES. 6.11 LANDSCAPING ASSESSMENT DISTRICT NUMBERS 38,39 AND 41 - a. ADOPTED RESOLUTION NO. 97-17: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR ORDERING THE CITY ENGINEER TO PREPARE AND TO FILE A REPORT RELATED TO MAINTENANCE OF PUBLIC IMPROVEMENTS IN MARCH 4, 1997 PAGE 5 THE CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT NO. 38 AND ANY ASSESSMENTS THEREON FOR FISCAL YEAR 1997-98. b. ADOPTED RESOLUTION NO. 97-18: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR ORDERING THE CITY ENGINEER TO PREPARE AND TO FILE A REPORT RELATED TO MAINTENANCE OF PUBLIC IMPROVEMENTS IN THE CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT NO. 39 AND ANY ASSESSMENTS THEREON FOR FISCAL YEAR 1997-98. C. ADOPTED RESOLUTION NO. 97-19: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR ORDERING THE CITY ENGINEER TO PREPARE AND TO FILE A REPORT RELATED TO THE MAINTENANCE OF PUBLIC IMPROVEMENTS IN THE CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT NO. 41 AND ANY ASSESSMENTS THEREON FOR FISCAL YEAR 1997-98. 6.12 ADOPTED RESOLUTION NO. 97-20: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR AUTHORIZING THE SUBMITTAL OF A FIFTH CYCLE USED OIL RECYCLING BLOCK GRANT TO THE CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD - authorizing the City Manager to submit an application for the Fifth Cycle Used Oil Recycling Block Grant for Fiscal Years 1997-2000. 6.13 APPROVED PURCHASE AND SALE AGREEMENT BETWEEN THE CITY OF DIAMOND BAR AND DIAMOND CREST ESTATES LLC--BREA CANYON ROAD SITE - and authorized and directed the Mayor to execute said agreement. (C/Harmony voted no on this matter.) MATTERS WITHDRAWN FROM CONSENT CALENDAR: 6.7 b. ADOPTED RESOLUTION NO. 97-21: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR APPROVING PLANS AND SPECIFICATIONS FOR THE IRRIGATION AND DRAINAGE IMPROVEMENTS AT PETERSON PARK IN SAID CITY AND AUTHORIZING THE CITY CLERK TO ADVERTISE TO RECEIVE BIDS. 6.10 AWARDED CONTRACT FOR INSTALLATION OF SPORTS FIELD LIGHTING AT PETERSON PARK - to MacKenzie Electric, Inc. in the amount of $199,557 plus a contingency amount of $2,000 (1%). MARCH 4, 1997 7. C PAGE 6 Following discussion, C/Ansari moved, C/Wemer seconded, to approve Consent Calendar Items 6.7 b. and 6.10. Motion carried unanimously by the following Roll Call vote: AYES: COUNCILMEMBERS - Ansari, Harmony, Werner, MPT/ Herrera, M/Huff NOES: COUNCILMEMBERS - None ABSENT: COUNCILMEMBERS - None PUBLIC HEARINGS: None OLD BUSINESS: 8.1 AWARDED CONTRACT TO PROVIDE ENVIRONMENTAL MITIGATION MONITORING SERVICES FOR VESTING TENTATIVE TRACT MAP NOS. 32400 AND 52203 (ARCIERO/WOODBRIDGE PROJECT) - In response to MPT/Herrera, CDD/DeStefano stated that consulting services costs will be paid by the developer and the City will incur no related costs. Don Schad expressed concern that there may be an earthquake fault in the vicinity of the proposed construction. He reiterated his request that the project be moved easterly away from the stream and old oak trees and his wish that the area be preserved. C/Harmony requested that City conduct a study to determine whether an earthquake fault exists where construction is contemplated. CM/Belanger stated that a seismic study is required as part of the project. The Public Works Director will monitor compliance with the requirements of the Alquist-Priola law. MPT/Herrera moved, C/Ansari seconded, to approve award of Consulting Services Agreement with Michael Brandman Associates in the amount of $28,310 for mitigation monitoring services for Vesting Tract Maps for Tract No.'s 32400 and 52203. Motion carried unanimously by the following Roll Call vote: AYES: COUNCILMEMBERS - Ansari, Harmony, Werner, MPT/ Herrera, M/Huff NOES: COUNCILMEMBERS - None ABSENT: COUNCILMEMBERS - None 8.2 ODE TO DIAMOND BAR MOUNTAIN LION SCULPTURE - QUESTIONS AND ANSWERS - The City accepted the offer to donate a mountain lion sculpture made by the Ode to Diamond Bar committee. MARCH 4, 1997 PAGE 7 Debby O'Connor, representing the Parks & Recreation Commission, stated that this item was on the February 27, 1997 Commission agenda. The Commission concurred with the need to obtain the complete answers to Councilmember Werner's questions. Speaking as a private citizen, Mrs. O'Connor reminded Council that on January 7, 1997, she asked if staff could provide a detailed breakdown of the expenses associated with the acceptance of this gift. The breakdown provided at the February 27, 1997 Commission meeting was the first answer she had received to her question. Don Schad said he will assist the City in stubbing out electrical from the signal control box to the site for future lighting. Council concurred to receive and file staffs report. 9. NEW BUSINESS: None RECESS TO DIAMOND BAR REDEVELOPMENT AGENCY MEETING: 8:46 p.m. RECONVENE: M/Huff reconvened the City Council Meeting at 8:49 p.m. 10. COUNCIL SUB -COMMITTEE REPORTS: C/Ansari stated that she met with local government officials in Sacramento on Monday, March 3, 1997 to address concerns about how local cities can get more monies returned from the Federal government. She encouraged Council to attend a legislative subcommittee meeting April 11, 1997 at the Davidson Center. Further, she announced that she is planning a Business Development Conference for the San Gabriel Valley. M/Huff stated C/Ansari was re-elected SCAG Area Representative. The Grade Crossing Study indicates that over the next 20 years, freight through the San Gabriel Valley will triple. SCAG is working to secure approximately $950 million in funding to implement strategies to remedy the situation. 11. COUNCIL COMMENTS: C/Ansari stated that she and C/Harmony attended the Girls Softball opening season. The organization enjoys 360 participants. She is working to obtain Congressional re -authorization of the ISTEA bill. She urged citizens to write their Congressmen asking that California's fair share of monies be returned and emphasize that transportation and highways will be greatly impacted by lack of funds. She also asked residents to advise Council Members when they encounter problems that affect the City. MPT/Herrera reiterated congratulations to students receiving awards for their Sister City letters. She thanked Nick Anis for his participation in the Sister City activities. She invited the public to attend her Sister City trip discussion in the City Hall Conference Room on Wednesday, March 5, 1997 from 10:00 a.m. to 11:30 a.m. MARCH 4, 1997 PAGE 8 C/Harmony announced that he would attempt to file a temporary restraining order against Council Member Werner on Wednesday, March 5, 1997. 12. ANNOUNCEMENTS: None 13. ADJOURNMENT: There being no further business to conduct, M/Huff adjourned the meeting at 9:02 p.m. ATTEST: Mayor LYNDA BURGESS, City Clerk CITY OF DIAMOND BAR MINUTES OF THE PARKS & RECREATION COMMISSION BOARD HEARING ROOM OF S.C.A.Q.M.D. 21865 Copley Drive DECEMBER 19, 1996 CALL TO ORDER: Chairman Tye called the meeting to order at 7:01 p.m. PLEDGE OF ALLEGIANCE: The audience was led in the Pledge of Allegiance by C/O'Connor. ROLL CALL: Present: Chairman Tye, Vice -Chairperson Finnerty, Commissioners, Medina, O'Connor Absent: Commissioner Law Staff: Community Services Director Bob Rose, Parks and Maintenance Supervisor Don Hensley, Community Services Supervisor Wendy Bowman MATTERS FROM THE AUDIENCE - None CALENDAR OF EVENTS: CSD/Rose presented the Calendar of Events. C/O'Connor asked if, in accordance with VC/Finnerty's request, an alternative location was considered for the January 30, 1997 Parks Master Plan Public Workshop. CSD/Rose responded that Pomona Unified School District did not respond in time to the city's request to use one of their facilities. C/O'Connor suggested that Commissioners attend service club meetings to encourage public participation. CONSENT CALENDAR: 1.1 Approval of Minutes of November 21, 1996 Regular Meeting. December 19, 1996 Page 2 Parks & Recreation Commission C/O'Connor moved, Chair/Tye seconded, to approve the minutes of November 21, 1996 as submitted. The motion was carried 4-0. 1.2 Transmittal of Minutes of November 2, 1996 Joint Town Hall Meeting. C/O'Connor moved, VC/Finnerty seconded, to approve transmittal of minutes of November 2, 1996 Joint Town Hall Meeting. The motion was carried 4-0. 1.3 Transm.ittal of E.E.M. Grant Request for Trail Improvements in Sycamore Canyon Park. Following discussion, C/O'Connor moved, Chair/Tye seconded, to receive and file Transmittal of E.E.M. Grant Request for Trail Improvements in Sycamore Canyon Park. The motion was carried 4-0. 1.4 Transmittal of C.P.R.S. 1997 Conference in Sacramento Registration Information. CSD/Rose encouraged the Commissioners to attend this excellent conference. He requested the Commissioners verify their reservations with staff by January 3, 1997. Following discussion, VC/Finnerty moved, C/Medina seconded, to receive and file Transmittal of C.P.R.S. 1997 Conference in Sacramento Registration Information. OLD BUSINESS: 2. Parks Maintenance Update. PMS/Hensley presented an update of maintenance actions taken at city park facilities as a result of Commissioner walk throughs. Chair/Tye requested Commissioners bring their calendars to the January 23 Parks and Recreation Commission meeting to schedule the 1997 park visits. VC/Finnerty moved, C/O'Connor seconded, to receive and file the Parks Maintenance Update. The motion was carried 4-0. December 19, 1996 Page 3 Parks & Recreation Commission 3. User Group Meeting Update. CSD/Rose presented an update of the November 26, 1996 User Group Meeting. He indicated the city has received requests from the Walnut Valley Pony League and the Walnut Valley Soccer Programs because they have been denied use of Walnut facilities. Fourteen organizations have requested use of the Heritage Park lighted ball fields. Because the city has more requests than it can accommodate, he asked for Commission concurrence with respect to the list of scheduling priorities for the Heritage Park lighted ball fields. VC/Finnerty stated that in her opinion, more consideration should be given to team members who are Diamond Bar residents than to team coaches who reside outside of the city. CSD/Rose indicated that irrespective of team member's residency, coaches who reside outside of Diamond Bar are able to obtain team facilities in their cities. Coaches who reside in Diamond Bar have difficulty obtaining facilities outside of their own city. VC/Finnerty reiterated her belief that more consideration should be given to team member's residency. Chair/Tye concurred with VC/Finnerty. CSD/Rose responded to C/Medina that the city does not comply with requests for field usage on a first come -first serve basis. Teams that apply by the deadline are included in the priority selection process. VC/Finnerty moved, C/O'Connor seconded, to recommend that the User Group priority selection format will be as follows: Priority 1 through 6 is based upon the type of organization (city or non-profit based Diamond Bar team) per the city's Policies, Regulations and Procedures. Items 7 through 14 are prioritized based upon the number of Diamond Bar team member residents, subject to verification of residency according to the current or prior year team roster. The motion was carried 4-0. NEW BUSINESS: 4. Community Information Signage. CITY OF DIAMOND BAR MINUTES OF THE PARKS & RECREATION COMMISSION BOARD HEARING ROOM OF S.C.A.Q.M.D. 21865 Copley Drive JANUARY 23, 1997 CALL TO ORDER: Vice Chairperson Finnerty called the meeting to order at 7:14 p.m. PLEDGE OF ALLEGIANCE: The audience was led in the Pledge of Allegiance by C/Law. ROLL CALL: Present: Vice -Chairman Finnerty, Commissioners, Law and O'Connor Absent: Chairman Tye and Commissioner Medina Staff: Community Services Director Bob Rose, Community Services Supervisor Wendy Bowman MATTERS FROM THE AUDIENCE - None CALENDAR OF EVENTS: CSD/Rose presented the Calendar of Events. CONSENT CALENDAR: 1.1 Approval of Minutes of December 19, 1996 Regular Meeting. Due to lack of quorum, C/O'Connor moved, Commissioner Law seconded, to continue approval of the minutes of December 19, 1996 to February 27, 1997. The motion was carried 3-0. OLD BUSINESS: 2. Parks Master Plan Update. CSD/Rose stated that the Parks Master Plan consultant team Purkiss Rose -RSI January 23, 1997 Page 2 Parks & Recreation Commission will provide an update on the status of the Parks Master Plan process and an overview of the scheduled January 30, 1997 Public Workshop. Steve Rose, Purkiss Rose -RSI stated the telephone survey and tabulations have been completed. When the special interest group surveys are completed, all survey information will be presented at the January 30 Public Workshop. Chris Coman presented results of the 500 telephone surveys. She stated 93 percent of residents polled said they were very or somewhat satisfied with park safety. Thirty-six percent of those surveyed frequently used the parks, 39 percent were moderate users and 25 percent said they seldom or never used the parks. With respect to park program participation, 26 percent said they frequently take advantage of the programs, 18 percent were moderate users and 51 percent said they never use park programs. The following is a list of park facilities frequented in ranking order: 1) Sycamore Canyon Park 2) Heritage Community Center 3) Maple Hill 4) Ronald Reagan Park and 5) Peterson Park. Participants reported that the best aspects of the City's most frequently used parks are as follows: 1) 22 percent said convenience 2) cleanliness 3) athletic and playground equipment 4) landscaping 5) view. Participants stated they participated in activities as follows: 1) picnicking 2) walking/jogging 3) playground and tot lot use 4) bicycling and 5) tennis. Participants said they participate in adult softball and tennis most often outside the City, and youth sports and organized sports inside the City. The survey asked what facility they would most like to see in the City. The responses were in the following order: 1) community swimming pool 2) bicycling and jogging paths 3) tennis 4) playgrounds and tot lots and 5) recreation center. With respect to funding for parks, 47 percent said they are somewhat or very interested in user fees, 45 percent said they are somewhat or very interested in using public/private partnerships and 20 percent said they would be somewhat or very interested in a household tax to pay for park facilities. Fifty-four percent of those surveyed said they would be willing to pay $2 per month/$24 per year, 42 percent are willing to pay $3.50/$42 per year and 27 percent are willing to pay $5/$60 per year. Ms. Coman responded to VC/Finnerty that she does not believe that the responses vary a great deal depending on the age of the community. She indicated she will research this matter. Ms. Coman indicated that population projections are being reviewed by City staff. These projections will be used to complete the projections of demand for January 23, 1997 Page 3 Parks & Recreation Commission facilities. She indicated that statistics showing participation by different demographic characteristics within the City will be presented at the January 30 workshop. Ms. Coman responded to C/O'Connor that the survey elicited 279 responses north of Grand Avenue and 221 responses south of Grand Avenue. C/O'Connor said she feels she caught her surveyor off -guard because she told the surveyor that she is a Parks and Recreation Commissioner. She was hurrying to answer the questions because she had a prior commitment. She indicated she was not impressed by the surveyor. CJO'Connor stated she found it was very difficult to answer the survey questions without thinking about her position as a Commissioner. She further stated the surveyor asked her about Diamond Bar's public pool and when C/O'Connor told the surveyor there is no public pool in Diamond Bar, there were no follow-up questions to determine if she and her family used other facilities. C/O'Connor stated that she uses a Homeowners Association swimming pool. C/O'Connor said that after stating she was willing to pay $5 per month the surveyor asked her if she would be willing to pay $2. C/O'Connor indicated that she felt the surveyors were unaware of the facilities in Diamond Bar. C/O'Connor stated she did not recall that the surveyor asked her if she used facilities inside or outside of the City. Ms. Coman responded to VC/Finnerty that there is about a four percent error factor considered in the survey process. Susan Jones stated that she contacted the City and other service providers to determine what programs are available to the residents. The most popular are the sporting and fitness activities. In addition, the City provided children's programming, including the day camps, are very popular. Daycare and YMCA youth activities are also popular. Since swimming lessons are extremely popular, there is a need for a facility to accommodate this activity. Community needs include themed family activities such as Halloween carnivals, holiday events, a community center for hosting large events, and athletic field lighting. Steve Rose indicated that the research continues. Updated information will be provided at the January 30 Public Workshop. Charts and diagrams will also be provided at the workshop. January 23, 1997 3. Parks Maintenance. Page 4 Parks & Recreation Commission CSD/Rose stated that at the December 19, 1996 Commission meeting, Chairman Tye requested the Commissioners be prepared to schedule City Park site visits. The visits will take place each Thursday morning at 9:00 a.m. beginning February 20, 1997. The following Parks Maintenance schedule was determined: Heritage Park February 20, 1997 C/Law Sycamore Canyon February 27, 1997 C/O'Connor Maple Hill March 6, 1997 VC/Finnerty The remaining park visits will be scheduled at the February 27, 1997 Parks and Recreation Commission Meeting. NEW BUSINESS: 4. Priorities Matrix. CSD/Rose stated staff is beginning work on the 1997/1998 fiscal year budget. The priorities matrix is the Commission's method of communicating its priorities to be considered for the budget process. CSD/Rose responded to C/O'Connor that he anticipates the Parks Master Plan will be completed in June or July. The budget is usually adopted prior to the beginning of the fiscal year. If the Parks Master Plan and budget are both adopted near the end of June, the City Council may include items within the budget that were proposed through the Plan. He indicated his budget must be submitted to the City Manager in March. Responding to C/Law, CSD/Rose indicated that with respect to a community center, the City will propose a five-year Capital Improvement Program, which could include such a facility. Community center facility funding would have to be available before it would be included in the budget. Following discussion and clarification, the Commission agreed to continue this item to February 27, 1997. January 23, 1997 Page 5 Parks & Recreation Commission INFORMATIONAL ITEMS: 4. 8th Anniversary Celebration. CSD/Rose presented the 8th Anniversary Celebration update. He indicated the committee has not met since November, 1996. Staff has been meeting in order to define the scope and budget of the event. A $10,000 Anniversary Celebration budget is proposed for City Council consideration. The proposed $16,000 budget included permanent vertical banner materials which will instead be included in the general government account. The celebration will be enhanced to include items suggested by the Anniversary Celebration Committee. Event marketing will be increased for this year's event. 6. Recreation Update. CSS/Bowman presented the following update: YOUTH BASKETBA One hundred ninety-seven youths have registered for basketball, generating $10,835 in revenue. The contract goal was 180 participants and $9,900 in revenue. Special backboards were ordered for play at South Point Middle School gymnasium that attach to existing 10 foot backboards which lowers the hoop height to 8'6". This change has been well received. The six team 4-5 year old division is continuing outdoor play at Maple Hill Park on six foot portable baskets. The gym is not available prior to 1:00 p.m. for Saturday use. CITYWIDE TRACK AND FIELD MEET The packet for the March 15, 1997 Citywide Track and Field Meet will be delivered to schools when the SGVMAA determines the date of their track meet. ADULT SPORTS The winter basketball league started Sunday, January 12, 1997 with four teams participating in the "C" league and six teams participating in the "D" league, which is two less than the 12 projected teams. Staff put together a team from the individual interest list and will continue to promote and advertise upcoming leagues. January 23, 1997 Page 6 Parks & Recreation Commission The adult softball league is scheduled to begin on Sunday, January 19, 1997 with six "C" teams and four "D" teams participating, which is two teams short of the number projected. Adult coed volleyball is projected to start on Friday, January 24, 1997 in the South Point Middle School gymnasium. Six teams have expressed interest in league participation. The Recreation Program was denied week night access to South Point Middle School. Friday night access has been gratefully accepted for which staff is attempting to form a coed volleyball league. Diamond Bar High School has Sunday night basketball. K61121 11111" Classes for the first session of the winter season started on January 6, 1997. Classes that continue to be popular are Kindermusik, Keyboarding, Mommy and Me Gymnastics, and Tumbling Toddler/Parent and Me. The Drawing and Painting class with Allison Merriweather has reached maximum capacity and staff is looking at the possibility of offering an additional class. Press releases continue promoting the Winter Recreation classes. Contract goals for the year are to generate $130,000 in revenue. To date, $79,435 in revenue has been generated. A marketing survey was developed by staff and shopping centers are being solicited for cooperation in advertising the programs. Each staff member has a "target" center and will serve as a liaison between the City and the center. Staff initiated distribution of a monthly flyer to the schools which highlights upcoming classes and events. The January flyer highlighted the tennis classes, as well as current and new instructors. The flyers have generated additional signups. CSS/Bowman stated that with respect to the Parks Master Plan, staff is recommending themed family activities such as an Easter egg hunt, a Halloween haunt, and a gladiator day to be included in the 1997/98 budget. CSD/Rose responded to C/O'Connor that the City is a member of the Diamond January 23, 1997 Page 7 Parks & Recreation Commission Ranch High School Facilities Committee to determine accommodations for indoor and outdoor youth activities. C/O'Connor suggested that the City participate with schools to promote themed family activities. COMMISSIONER COMMENTS: C/Law complimented the City for establishing a Community Calendar. He reiterated his suggestion to the City Council that the calendar be distributed to all citizens. VC/Finnerty suggested the Community Calendar be distributed in the Windmill publication. C/O'Connor stated she was disappointed by the small turnout for the recent Emergency Preparedness Town Hall Meeting. She asked if Commissioners could be provided Emergency Preparedness kits. C/O'Connor asked for an update of the Sycamore Canyon water analysis. CSD/Rose stated that Cal Poly Pomona is proceeding with the analysis and creating a filter system. He indicated he will provide an update regarding this item at the February 27, 1997 Commission meeting. VC/Finnerty asked if the City is continuing negotiations with Walnut Valley Unified School District for a Paul C. Grow Park Use Agreement. CSD/Rose responded that CM/Belanger has submitted a request to meet with the new school district liaison regarding this matter. C/O'Connor suggested the Recreation Update be moved to the beginning of the meeting agenda. ANNOUNCEMENTS - None ADJOURNMENT: C/Law moved, C/O'Connor seconded, to adjourn the meeting. There being no further business to conduct, VC/Finnerty adjourned the meeting at 9:25 p.m. January 23, 1997 Page 8 Parks & Recreation Commission Respectfully Submitted, /sl Bob Rose Bob Rose Secretary Attest: /sl Steve Tye - Steve Tye Chairman CITY OF DIAMOND BAR INTEROFFICE MEMORANDUM TO: Mayor Pro Tem Her-rera and Councilmember Ansari bA FROM: Linda G. Magnuson',' -Accounting Manager SUBJECT: Voucher Register, March 18, 1997 DATE: March 13, 1997 Attached is the Voucher Register dated March 18, 1997. As requested, the Finance Department is submitting the voucher register for the Finance Committee's review and approval prior to its entry on the Consent Calendar. 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 dated March 18, 1997 have been reviewed, approved, and recommended for payment. Payments are hereby allowed from the following funds in these amounts: FUND NO. FUND DESCRIPTION 001 General Fund 112 Prop A Fund -Transit 115 Integrated Waste Mgt 125 CDBG Fund 126 COPS Fund 138 LLAD #38 Fund 139 LLAD #39 Fund 141 LLAD #41 Fund 250 C.I.P. Fd TOTAL ALL FUNDS APPROVED BY: Linda G. Ma son Accounting Manager .� Terrence L. Belange City Manager AMOUNT $188,190.95 28,260.84 Fund 2,649.66 997.74 2,110.01 310.27 6,316.76 2,786.72 6,029.88 $237,652.83 ��a' 4NV'1' Carol A. Herrera Mayor Pro Tem een RF Councilmember I-- _ i_hi-nCJ.74-NO --------------------------------------------------------------------------------------------------------------------------------------- BATCH F'G.LINE!,'40. -`+ A C4rate La;l.5CdF8 Accurate )1'd' 13 YI;i 4: _. 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V A =lana;^g i55DC. } .'1'421..-�_:•� 1 2)1°fl SAL +- C_.a+3iD 4 _1111 Al 1- G!JE .'ca.i_;0R--------7 46x).'1(! .--ol _t. mira„an ----5 4.:..-347: 7i13i H _iiL 4:?. i''_ Ee'_reat.cn Refund '-,TPL _uE ')E?+ OR PCC- --------------------------------------------------------------- - ----------------------------------------------------------------- i-4411 '!! �:_.'_� it'S 1 44 )E VENDORS -} 2 - -s;7i 3:1 11 .--- - - - - -J 1-+.. ���1' '' 1, {rte 7'';13ii .- VJr li i. -__ AITO.T -. A. ..- . -. .._f aroi Dennis CaroiBenni ; -435(;- 4301 70318B 03/4671 ",'11; PRP9' Mn Sac-f'rkfRec-1J23197 2 j1J1) JAL -JE `'iEiJUR--------) 21::C.+.1U Charles Abbott t Asc Inc CharlesAuo 4001-4510-5502, ,6 r . iJ:1c6 iij4:v'J rr V•J;1L n i:!1J C;� i>4a-�:� - 71 �:oacMa:,t-�eb', 14,13h.U;1 =1`ib iti;14;r_:' 13 ')49-�04 '"ar;_-:g/Sigr.Maint-reb97 4,665.td i. _5 2 70: 1_b1i( `.4 iL '_�'!i ')49-2U`a i `.':i -- u:A1 it VEA;LUR --------Y , 1J,?j6.6- ies ��gw1ch S�op C��izes Czcas s0�~���2L30 C�rmund? I"duBtr:es -.�unous �mzco. �� l23 3. 8. Improveme t Assoc. 3BIA 1-4 -4 1 Cl - 2)115 2 70818R 01/5346 Day Timers '421O'1 --)'00I 7,1-10MN3 I -P DayT1mers Uestefa o 270318B Azsatment of PI-otor 5 MN 64'5�44« 3 Cr��r'�e�'PrkS�afF 17.28 VE�[�R -------- ---ecrea-ion e- -ei-icnReflurd 36.0O ;,DTAL ]!-E vEmD0R ---- .00 �8/z2 o3,z8 L7tterA ate47eb97 839,44 L --uF ;ENGOR ---- 44 CG/12 03/1G Rec~eation Re;umd 32.N1 TOA DUE VENDOR -------- 32.00 03/12 03/18 Ar'Licle-DevCcmeSurvResult TOTAL -JUE VEND0K -'-'''—> 395.00 V3/12 V3/18 255I5612 Qa'��ce"Re�ill'Plng 24.YV �03.67 103.67 03/12 03/13 Sf�wre'�lc�r��clCde 101.00 1Ol.O0 G��czn �ar �a��sss Asoc �BS:sAsso mx�-���2l44 8 ��z�� 3s45pS ��/z� OS/�8 �n�'��oesz0S,19�'nar9/ 400�.5� rgs'�te�*,1�+Mar97 --- TOwiL �!E vEn[8R -------- **) -��0'2325 4 5 �818B 13/4589 �8/12 O3/zS 465b CCwor�Ses2ion 3/4/9> 39.19 ��AL �� �EN�OR ----> ibamonu Sar w, amis Clmz D8x mam,s *�1'��'�� 47�1�01�� 0/12�/18 �n��p'�hbl�i� 3100. 00 TOTAL DUE VENDOR ----> �3(10.00 Diamond Bar Remeveopment [Bar�DA *001'1313 4 70318G O3/12 V3/18 ��,ance'3/18 Expenditures 25.152.44 3TAL IIE VENDOR -'''''--> 25,152.44 �agm��ag'Env�rcn��r�l �ngEnv�o� »001'23V�'1012 }2 703168 03/ 2 03 3 37022 Se- toc7 ev49 325.O0 + Al-40zV-120C 2 7V3�86 o�/5452 t�/�2 03/lC 124308 Srie��/Cases'nyr nPT 7G.4 - AL DUE YEND]R -------- ---'reddu red, tU �01'2l1�-�01I 2 �8�8H 03�12 ��18 �� Pay~oll [�du �iors S,214.75 03/1�97 oo;��o347 �JTAL M.3UN- --} '14. 75 /E;DU9 Fang, Ail FaogA '280O-1�� 7 08138 03/12 03/1 44 tyCe osit 50.S0 �OTQ� DUE )EN8OR '''-''''> 5O.00 Federal Express 0l0 1S /O3�86 03/12 03/T84Ou3768�5 Expressnazl'FPL93-006 86.27 ^�S� 4;9O-2120 1 �O3�88 03/12 O�/�8 4��37�8�5 �xpres-Mail -GpnGovt 7S.63 ?��AL DuE VEnOOR -''--'-'> 164.9() 77 V17, rl-Rl ,,PME NO --ATCH K.; -NE E . l I : -- ---------------------------------------------------------------------------------------------- ------------------------------------- Finnerty,=nnette Fiiner'YA -4'50-4101) 0 -DUE V---�,,IMR -------- �lrestone Stores ---Estone 1 - 4 ul - 2, 2 1( D -I 10 -7ft 7 4 r: v. '4 _1 -44i; -2,2f30 ? lid :i, "� -. i '7 42505 Qulomamt-VltrFtrl 2 j 4 56 UuE VENIC.-�-R ---------- Fong, Frank -lin -4210-4111DO 4 -r 4L DIJE k,'F-N�DQR -------- 1- ITr. ,i':-4:__-_E'; 4 .98 '-2, i,c67-2�-7 Inst ,'ns -Fares 4,4.'f5.40 --edor -4..,-2,340 oto" 3r' -'c 'EDOR --- -------- Raq3n 4" l.'L DuE vic-NLDUR -------- 41 25 ---------- -Tc a GTE Mlec -5 22 4-7- JUE ID 'OR -------- ^ . . . . .. . . . . . . ' ' ' ' . , vEwUGK BATCH P8.LINE i0. _---_----'—_--_---_—_---_—_--_—__—__—____-_-_------_---__--__-----_ GT� Cai���na ITE C'� ';!E —'--'> 42.72 ��1'4322-2�25 2 7C31�� V3!�2 O3/�S PxcpeSv�s'Pete �onPar� 42.�4 4 G�E Ca1ifor"�a J|E �01'�81-2125 2 7�8�� OS/12 33/�8 P�c���cs'S>camoreCyn 73.99 JuE vEND8R ---'} 719Y �oldenberg, nic�ae\ �olgen�erg *0�1-4210-4l00 \ 7o30F 03/l 14.28.2/1/.25 ��8.00 'Z4L 3i� VEu��R ---- .00 Draf-iti Contrn .3m `0�1'455S'5528 2 783i6C 0l/4632 03/12 03/13 C9�2'7 r3ffit1�:7/1'Feu97 3.87V.00 T8TPL DUE vBvSjR --'-'- > 3,870.00 Sra"t. --icy 2278 *oV�'�J8 7 7O318r 2 03/�8 oecrea���� Refuno 24.W} -'UE ----> 34.O0 3r��ics Jr. �d Graph���i ^O0�'4��-2110 2 7 /5 3, 7V 03/12 O ce-Mais �O.38 77TAL UE vEMD8Q -----> Sruner, -13me\l 22/ m01-2,478 8 70318H 0V12 03/l8 Recreation Ref;-n 3Y.Oo TJ�L DUE VENDOR ----> 2Y.0V Hail &Foreman Hall&Fores *001-4510-5�"�7 8 7031EC 01/5305 03/12 03/18 33564 Engr'Inspectn Svcs 56.25 «001-4510-5227 6 70318C 81/5206 03/12 03/18 3%565 Engr-InspectnSycs 169.19 *001-2300-012 13 7)318C 03/12 03/18 33566 T#47C50Rev'Bx96'140 1.000.0O »0O1-4510-5227 10 70'-'118C 01/5314 03/12 -021/118 'L)?5,VO TOTAL VENCj-R '' '- -> 1'45V.44 AL N T A - :1410 3 TCH PO,L!,-ENC. -------------------------------------------------- -------------- -------------- ------------------------------------------------------- ',E?rl ',-a 7-7 1, lelissa :4 TOTAL DuE VrENL�OR --------i — )Q J 4A 1 L -- _J 1-:47 B' -�z,�ra-,tSvcc 1 fQ7 7�-.C'i.UO 1 1- P7 TIC7 1L DuE VENDER -------- & jG O -b415 j.-, —:'I ".-MA -",,.striNAion "enter �7st:ins nc V �,Q -,—e-t Rent IndEquipRe 2 70318C 01/4636 -4, 80197 H, 'Cr -,CSvi:SPTV-,' 3P�; -,7 UE 5JE:`j-L: -------- -. J pt EMUOR -------- f 01311*21 Lu 7 4' 7 8 4^7 ,a I -g-Z7XCLr- 24 PrA u rs -:.;a n D i en o - '0`24 T�nsp-,S)an-ul ego- 24 San: 'srp-b .Di2g0-2/24 40 741 .00 '.'0 40 4 -47.60 45," a CE'll P 6 7f 1-4350-_310 -!�C 2'f 97 4 H, 'Cr -,CSvi:SPTV-,' 3P�; -,7 UE 5JE:`j-L: -------- -. J pt EMUOR -------- f 01311*21 Lu 7 4' 7 8 4^7 ,a I -g-Z7XCLr- 24 PrA u rs -:.;a n D i en o - '0`24 T�nsp-,S)an-ul ego- 24 San: 'srp-b .Di2g0-2/24 40 741 .00 '.'0 40 4 -47.60 45," Kapt Emire IniandEo ---} 7*,�-7AL IIE vENCOA ----------- lnland Valley I 8uLletn. *�01V 1/12 14 70370318E � 1�.� ��1'2�0'LV1V 15 701213E i�QY12 03/18 025003S3 LegalAd'FPL97-31 90.68 *001'MOO-N10 16 70818E O,/12 03/l8 025:3304 Lega}A0'FPL9713 1*3.23 T3TAL BE VENDOR ----> 30.14 lnt'\ Business Equipment lnBusEquip *001-4090'2100 4 70318C 02/4763 03/12 03/18 M6,345 CopyCh�gps 275.46 *001-4090-2200 6 70310C 01/4/63 32/12 03/18 01*345 nonthiyXer6/Chrg-Mar97 165.00 TOTAL DUE VENDOR -------- > 440.46 I�tik. ��k {st�xJ *01-4553-4100 2 7O3180 M2 0303 TV %42M40.0O 7'-'4L DUE V[N6UR --'—'> 40.00 Kens Hardware :ens ^0O�'4328'221O \ 70318C 10/t341 03/12 808 93883 Sqp|iesSummitridgePark 11.10 +001'4�16-221O � 7OC�3C C8/534l 02/12 O3/18 Map ieHillPark 8.49 *0tz'M-225 3 71118S 09/5?41 03/12 4229 SuppliesRonReaganPark 12.'3(w - 2.9012O 1"', 7/' - 11 C3/12 03/18 Varzous v�CperatingSupp\ies 140.29 TC`4� DuE vEND2R -'--'-''> 172.78 nil, Anny 217-. *�0�'3473 13 7O3�8* 03A2 03/16 Recre��icn Re��n� 36.O0 �14L !E MIT -- --> MOO -.A.Cwmty Puui/c works LACPubk ^801-455�'551O 2 70318D 01/4553V8/12 03/18 9700}')�4C4� rr�w�rSvcs'12-1/97 5202 52oV 6 70810D 02/4553 03/12 O3/18 97000oC41+4 3umpP-;aMa1nt'I/97 776.28 TCT^- LJi� VENCGR ---- 068.GU L.A.County uulo Works LACF-.-jwk *�01-451O'553V 2 7O318D 01/4574 V3/12 V3/18 9700�)04042 lnd�aste6"cs'Jan97 421.5V T.--ITAL DuE VENDOR '-- ---> 42\.5V EIOR T'_ , LR P�!�-Ij,TX-NO '-AT7-H K.LINE/NE. _A: 7'. W DO. ------------------------------------------------------------------------------------------------------------------------------------ . -ACelltlar 4 J 40!t-" (D 2, 1 .7. 5 L J- t -e' Pror eEmarges 1 .74 4 . Qn acne ar -es 7 4 O'LL VENLIC - -------- er i t A+4. 41 eu.97 ,'ENL;__c; - ---------- -eague DF Ca.1,- 7, Huf, 1-47 r 'AGUNT ---- 7-7,1 rLE --------- 0 0 . -eagu2 :2; Ca. Cities ell "Tip L E EI., OR ----- I_u :;J J "'T Ret EFEEt�_IUHI Urld �.!:E VENDOR -------- -n 45 1 45 'r) L! 14 2�7 :4 7j,' 15 71 _1 1, T Ez J -E AE N ED U- R _v -e LeonardJ I 7C,318G 03/, i71 9L-------- Inc I -,?w 1 E n q ri 4 7! 11 -lp Sansh 71- 4 3/18 421-1 -terC'ty 4 7 ,',t'=:4-7 4 49e Tr.T AL DUE VENDUR --------- 851.45 OR NAME l'v? -------------------------------------------------------------------------------------------------------------------------------------- Courty MTA LA'''MA a'D -- --- -- 3ubs, J4,; -Fares U 2 1-4 C o m Ctr-;,2n� �Iar 94. 4' 0 `-'A4 m c mt.; ak I P, I a 1 00 ".).31!l,'--'/.;7 JA L TOTAL DUE YEtiCCP ------ 00 Aa l.n f;3, LPP Q 4 -ems 4 2 _f, - --------i HL 'i'm t �jij - - - - - - - - �_N_ _R 4 N) "ed i n aR 4 2 5, 0 - 4 10 0 3 703186 03/12 fj*l 18 40. ';,_`TAL 'DUE )EN CR -------- 40. oc) "etre Mobile letroft i I 120-4411-6240 1 2D 01/5275 0,:,' �.:.e�wooj.._41-Radio Equ,.- 49F_ . j") 4 :!13D 115 2'/ 15 1 66-5 w,enwood"41—Racio Equip 495. DO i'21 4�_ 4411 _6240 70*3 1 :M, 1 -11 2 11 _2 Ic, 97-7, C.; Kenwood -14 _:,lHandH.21dlRad 1 c I,;_ DO 1411-x'241? ;., 1 . Q J L jl 18 �7- 76695 Antenna&TnStilation Y Oo 112_-441.-(::411 1 10 70, -7;, i I') 9� 1 Rai I n �. t a I I S n 1 T a 4. 0 ,"-AL _;,LjE VENDOR .01 �E�DUR NAME AC��UNT FRD';� �7CM PO.LINE�0. 2v`�'/���� ��'L��� [�����-�[a o����r _____________________________________________________________________ ��trulicx Mecrolink c -o4 97 sIyfares �E v E' � --------- �obi\ �cbil *U1'4210-2200 C8/12 03/i8 15535 p�ng�r�na�rc 35.�� -41O�� 4 -.7* -47 4'014:310-2200 4' 6 VEWDJK -------- ----liomile -lion lleModular Management lMouul ��1'435C 240 2 ��18D V1/501 -5A ��/12 �8/�9 �5�� - le- '3/15 �q.7C TOTAL 2UE VENDOR --'—'} -39.7O Morena Bosmam, J:me}ys 2271 *001'3473 12 703i8H V3/�2 03/�S Rszrea7zon Rpfund 39.OV rUTAL DUE VEN[CR -------- 00 4eilson Press wei!so nPno 5-21\0 2 703�8E V1/5368 03/12 O3/19 32D8L Usd�otorOilFactSheet 459.�6 TOTAL DOE VENDOR '-'---'> O'Coonor, 3ccnner3 *0V1'���-41O0 4 70318G O3/12 �3/�S P & R ntgs'02�7 & 03/05 8O.O0 -�TAL 2E VEm2OR -------- '' ..'!CB JCB Repro0rap�ics QCB8eprogr *250'431u-6415 0,6597 15 703186 01/4700A 013/12 03/l8 539455 7r�sraPr' B1celi'SS 74.n -LITAL 3uE vEN OR -------- 74.86 SFe Depot OFBce0epo +001'409V'1200 � 7O318E 26/456�\ O3/12 O3/13 017847i89 Creu��nemo'OexGuvt 79.61 0L'401V'l2�0 5 7031?E 21/4q66A 03/12 03/1O O��75YY�9 �es'CCncl 177.8� *0V1'4V1V-12O0 7 703IR. E 23/4566A03/1� O3/18 O1983V286 Cre�itMevo'CCncl 182.O8' ^COi'4�Y�'12VV 1 7V318E 8Y/45��A O3/12 03/18 O1�887523 Endorsenec�Stamps 149.J9 *O01'4V4V-12-100 1 70318E 20/4566A V3/12 0-3/18 01998n:54 Supp 1i*BCClk ill -u0YV 18E 24/4;:66A �3/12 03/�8 �l�98O�76 Supos enCovt �Li 33.29 »0CL'409V-l200 3 70318E 25/4566A S`.��l�es'8enGo�� �6V.49 ��81'4C�3-120V 6 703�SE 22/45�A DUE VBwCOR --------- 473.28 `AL :-E YEN]R -------- ) 44.�)) "o Egos FraSpas ).-"12 VIR An Ev 11 a 1-0--i 9 7 77AL ::UE VENLOR - --------i ],'-"-.97 70:H :�Wal .012 AM 514n:! l4phenjoane a 11 4 70318E :7; 4-�,66A 12 5518 waMN SqPnes-Agr 3704 QW -519120 4 lot A :NunnA AN: MAE OVAM Qties-Fmane :2.44 IN14020150 2 7033E SAW 0012 OAQ 0061P46SWplws<Mgr 31 W i -40nj- lau 2 AME : 1 MWA 3112 SMS )h lQ1110 r e d i t "a-,Tio i n an c e 7al- 1 70318E 1414566A C,:ill 0 2 Crc—litMETic-LMgr 8 M- I - t -; -?E !9/4t66A I _recti :Memc-LMgr .79- +i.-Ol -41)5C,'-1201) 3 703IK 12/45666 4 Suppl.es-Flnancp 51.20) *"2-:x551553 7 DAnE 2066B C302 0203 GAIROG SqPhe"Mut AS, WOOMMO 3 701 SE 16MIM 11-. J13 1-, 0 2'' v SLPPlies-CMgr 10.32 VEN-�N -------- Lome jqot Fxgqo Iv 7�i-1,H 'jl/5-74 rAM WAR hing Tahe4TAs -'U'L -------- ii""?. 57 los notm Yynn 702 YH 12 in A PaNaB-Fe-0 l.'-;,222, i5 0:3. At P7 A2 2,2E ---------- I 7r M2 03o. 0 U N T n!"Sy boxes _.wit Corp, FSCC yn_-MFMK 6 70318F 01/45578 03/12 0252 154-049- A17glanVMAAU 9v5- uE lvter, ste 2274 .- 47; 13 70318H 03n2 OW--, 44. W., `AL :-E YEN]R -------- ) 44.�)) "o Egos FraSpas ).-"12 VIR An Ev 11 a 1-0--i 9 7 77AL ::UE VENLOR - --------i ],'-"-.97 VENDOR NAME YEN" 1D. +Ty ACCOUNT-,RDJ.TX -NO HATCH PO.LINE/NO, -------------------------------------------------------------------------------------------------------- Ena?cv JI".1 , T _ r `c -;fin; _:ti,- AMC, ---------------------- 1 Purkss i { - ''. x'47 �yal SVCS-FFL"G,-':a �i;;1-,; ,�,�:•--ii?1 `_ ___�F _. ,,. ... ,_ ____ fir_ _ __ �. _'�_'+�!_ - .. DOi-4t)''0-4cJ�+J 6 ,1 jo 13 _ :_;1'6 47 i-egal Svcs-Uanuary 5 _,.,35 of = DiUeDr l^t o1:'�B i i,/12 ' . Legal Svcs-lanuar+ 35.00 -__ _ n.L.jH�SLl.¢,t:^ 93 `,5:.,,, '-<5 R:icnards Matson & 3ers`! R d aros'Aa -4 nd s 5s:-4° 1 3? ,� .1:"� .C, , 4 Prt 4 :411 ;:.."F `_4_) (1� vii.: Ytgf ,-RFP-Amtshrs rtg-P P-Meadwgien � f.:1-4" - 11 '0 -2'_ _ _ •,c ,?1"��'? - IS 4 Ccp4es-WaterLmgMaps '`•__ ''TAL INE VENDOR --------i �5s).:30 ,. h tsc v, ;-.ter -;ic,ar.s �+a.a,.n ..Yrs +Ty !_-1Ga „�_ 054% Laya cvcs-FPS .6 1 O i { - ''. x'47 �yal SVCS-FFL"G,-':a +?O1-^300-101!' li 7C=�''3 _l1 ):) l8 ;0547 Legal Svcs -EN 96-140 �, ,25.)U DOi-4t)''0-4cJ�+J 6 ,1 jo 13 _ :_;1'6 47 i-egal Svcs-Uanuary 5 _,.,35 *i'1-40:0-4)�i; , :,vU1 (4713 i i,/12 ' . Legal Svcs-lanuar+ 35.00 t "A- � _•,. .E VEN�:OR--------) 93 `,5:.,,, '-<5 R:icnards Matson & 3ers`! R d aros'Aa ac;'_1-4' J. 4.+r1 } ?_ ._u .,1: <<4 x(11'- �+ 4ti�1 i - 2,G ' :;. <t_ Sly _p lgi 5vr_-iPS °+'•).i�7 +,,:'_.•,�'��': 4.0?1 1 - -- .;1,.,,=;.; i'•,; ._�._ ,.�.__10 c p Lg1 3t A is . . ..' -!� Jt;t JEIiiLR--------) .art Driver. co.�n� h, r "^;'rive '•''f-�:0 1004 1 '+ _,,_H ^':_ .''' - F-- ' er.t!ns -Feh'7 - ., - �c=ept RuzickaJ _ 7031$F 03%12 'J:'i -=1t. 14 20, ,'ii 3` L4%.) ALE v_raDuR-------- } 4,40.00 S-11AF *0-,-4:;50:.-12,00 6 7'.�loG 01!5465 ;3(1� {)31.3 .'1 5 ih h2 -Bs td1?�HFtbl 13:.00 - ITAL %UE VEN1%--------> ,CAN ( NATDA SCAN - , 7„- 83 0*' "S Mbr;hip-Cat;le TV Organztn 50.00 -uTAL DUE VENDOR ) 50•00 VENDOR BAT". -i Ffj.L,iNE.iNl U. ------------ ------------------------------------------- Saci^I lion San 3atrt_=i'v ir bcie V I n L 1 70" 1 7 0 0 0 1, 4 .5 IL 2- .:.'1-4:4!.'-2'115 c1cmad, Don ScmadD 42 10 - 4 L' 'zh,ah. Char!Rns -347- 14 7 '11 3,mart & F,.,al -_'1�3rt &F i n 1 `_-4'21`-1200 T_ 31K C 44 5215-1,200 ::out; "ern Ca. Edison S'cCaEd 1 Cn r. Or x:,01-4313-::1'24 1 70`'18F *001-4314-2126 2 TO 3 11 ,-'F I - 43, 16 - 2 122 6 1 *C01-4219-2126 1 70313E 0 1 - 4 3 22 - -2 121 6 2 70318E *0!:"1-4::25-2126 . 2 70318E *001-43'2 3-2126. - 2126 1 70318E ElectrlcSvc-HeritageC', 1 70318E Southern "a. Edison SoCaEdison -.:)r, Rose. mirissi-on idL -RE".11D AML' NT ---- TAT 1;YEN'LUDIR - ---- ------ Leg Au 1'14,4: :4:.34 - ----- At.-FrtsrPk Lignts DUE -------- 24.!,0 /14 28,21/11 25 "07AL DUE VENDOR -------- 240.00 Pe—atiOn Refund '11E �"QRSi-------- r. 7' UE vENn R -------- 'TAL.10 E!ectri7_Svz-PCOrow �7 0 t2 0'1'8 E 11 e: +,.r i c�vc -Her i t agePk 0::;%12 03;'18 ElectrlcSvc-HeritageC', 61'2.''0 02/12 03/18 ElectricSvc-MapleHill —9.9" 03/12 03/19 Electrir-Svc-Peterso0k .:119 03/12 03/13 ElectricOlvc-RReagan 03/12 03/18 ElectricSvc-Starshine 03/12 03/18 !.:_.ectricSvc-Summitridge 266.49 03/12 03/18 EleftriclSvc-SycamoreCyn 319.02 7_'TPL rJUE V[Nr,13R --------- 1 .3y,, 78 Elea -Traffic Control 4,6.4.4^ -;TAL DUE �.i,ENDOR -------- 4,634-41 JN 7"[nO0R �AM[ vENOUR H[L�VN7 —_—_—__—__--__—_—__—____—_—'_--_-_--_----_----____—__--__----___'__ NO BATCH PO.LlNE/NC. El���'�� DA�� Sc�th�� Ca. Ediscn SuCaEdisom *�35'4538-2126 � 7�318F O3'�2 03/1S lec�rvcQ# E�cS 'LLA38 3�0.27 �� V[n�OR ---- .27 GnUI:,erm Ca. Edison SuLaEuiam 4141'4541-2126 2 7A318F O3/12 V3/13 EleccricS,c'LLAC#41 �51.�5 0AL �UE vEN88K --> 15i.15 --outhern Ca. Edison Sc_aEuzson *139-4539-2126 1 7V318F 03/12 V3/18 Electr1cSvc :_LAO#39 226.7o -]TAL lNE VENDUR '-''—'-> 226.76 State of California Ca8enSvcs *001-4210'120O 3 70318F 03/12 V3/18 1996PlngIcneUevLaws . 36.00 0TAL JUE VENDOR '------) 16.00 3tuots, Marvin StuutsM *001'3473 1 7O318F 03/12 03/18 CR28950 Excursion Refund 25.VV JTAL ;-.'UE VEN8UR -'--'--> 25.V0 Subway Subway *001-4090'233�5 7 13G 0 1/4947 03/12 o3/18 Mtg Suppiies-Reorganxzatn *00 8 01/4947 V3/12 03/18 Mtg Supplies'SistrCiry 133.16 TOrAL DUE �E;NMH '---'> 145.12 �aaaya, Steven ,amayaS «�0i'4553-41O0 3 703l8S 03/12 O3/18 7�T ��g'02,'13 ru�A� D�E vEN�� -------'> Tate. Andrew TateA *00l-23OV'1OV2 8 703180 03/12 03/18 03-4011 5V.O0 TOTAL DUE VENBGR --'---> 5V.VV /ime Out Personnel Svc. TimeOut *001'4040-4000 8 ��18G 01/5351 03/12 03/18 19K TempSvcs-Receptn-2/10-14 383.6V *001 -4O40 -4V30 & 703l8G 01/534 V3/12 03/18 1932 Temp Svcs-Scanning2/1�'14 257.25 *0011-4040-4000 6 703180 01/5401 03/12 03/18 1952 TempSvc'Recptnst-2/18-23 INZL.88 *01'4040'4030 4 70318G 01/5,3344 03/12 03/18 1952 Tpmp Svc -Scanning 2/18-23 22V.5V TO -AL DUE VENDOR -------- 1.11:8.23, ��� =a..........�.��/�Y 112x0O,�. NAME VENDOR lD. ACCU�NT PROJ.TX-VO BATCH PO.LI��NO. ��R,/�� ����CE ����R�Fr1Um AMOUNT —________---__—_____-_'—_—_—_--_--_—_—_---------___—_--_--'—_—__—_-- ye. Steven TyeS UC Regents�,AE iren. *001-4510-2340 2 70.21COG 01/52,97 United Parcel Service UPS 4001-4090-2120 70-�100 Virginkar, Arun Yirginxar aalnutVlyWater Dist WVAaterDzs m01'4322-212� 1 �018G �alnutV>yWater Dist WVWaterOis /141-4541'21IL, 1 7V31SS Wa\nt/SanUimasBooster walSDimko 7 703118H est Co.;stArborist inc. WArtw *001'4558-5509 8 703186 08/0621 west End Uniforms west[ndUn\ ntg-211 7 /w: vEWDOR ----> G0.00 03/12 03/18 02 SubdvsmrapActTrng-Mamela 215.00 TOTAL DUE VENDOR '- > 215.00 03/12 O3/18 Y632780�2708 Exp ?,ail -.Gen Govt 19.0O rOTAL 100E VENDOR -------- 19.00 33/12 T&T Mtg - 2/13 40.00 T8TAL DUE VENDOR --'-''''> 40.00 03/�2 03/1S Wate- Svcs -Reagan Pk 304,29 0/12 V3/l8 wa�er Svcs'Starshiop Pk 45.O7 TCTAL DUE VENDOR -------- 349.36 O3/�2 03/�8 �atsr S�cs'�AD 041 2635.57 �37AL 'JUE VENDOR '''''-''> 2.635.57 03/12 03/18 /7'Ansari 30.00 Y7 f,m)0O��3�8 r4L PREP', D AIMEUNT —'> 3O.00 TDTAL DUE VENUOH ''-'''''> 0.0J 03/12 03/18 11143l [-'Tree Maintenance Feb945.00 _''AL ',",EvENI- ' ''''''> 94t.00OR �.0O 013/12 08/1.8 43720 Vol Patrl'Unifurms 176.72 0TA� DUE VENDOR ''- } 176.72 ++^ U. L�uCr�� JjE _HPU.............�xzS/+7 VENDOR NAME vEmUOR ID. * � H- 7 * * ��� ��.�'NO�T��.Ll�/�. ��Y/&E lN�ICE ��I�rIJ'.. AMOTJNT D A T E -E ________________________________ __________________________________ ____ Nest Putlishing Co. WestPu +0m1 -4O'0'2320 4 71 � t 3 Ales r Pri ft We t errG�f Wognmon. John Wright, Faul 'so, Nancy ���'43lC-2l3O ��1-435V-1�N *0�1'431O-2130 Barbara *061'347S �7Q 15 7��SH 'osemwater l2 �8l8S 01/464O 8 10 7fG183' 01/4641 ly/l2�l3 17 70318H 8�z� ������-�u� -�:AL���E��R—'--'> 03/l2 C�/18 J6 'Seni:.rs 18.Z juE vEw60R -------- ---C,3/12 C,3/12 j-3/18 37 Recreat:_-,-� 7.J0 �TAL __:UE VENDOR ----> 37,30 03/12 �8/18 AV c-L.Ppr-t - 2:275 & 3/4 3i)0.00 TOTAL JUE vENDU0 '--''''-) 00 0�V12 03/}S Recreation Refund 37.00 `OTAL DUE :Ew20R ^'''''''} 37.00 03/12 0�/ JAWC32 Equ�pRert'SycCynPrk Jan 12. CIO Q3/12 03/18 ,ANO -2645 Supplies-SycCynPrk 14.20 03y12 03/�8 �NV58292 E�uipRert'�rtgPrk 1/Y7 7.00 TOTAL DJE VENDOR '--'''''> 33.2O 03/12 03/18 Recreation Refund 37.00 �E VEN[OR - > 37.00 TOTAL PREPAID '—'-'-'--> 67,212.47 TOTAL CUE --''--'-'--'—> 170,440.36 TOl4L REPORT -'''—'-'---> 237,652.83 D1:3EURSE _"- 1-= +_LLL S HHS SIS. -_J = CTAL NIL ------------------------------------------------------------------------------------------------------------------------------------ Genera Fund -- :COPS Fund int Waste P!4r,t r nd G Fund ='+1 LLAT. #41 Fund t, i r' �l.L r'��rvli� 4 ,4 ----------------------------------------------'------ PITY f1L RIAI II1 klR MKM AGENDA REPORT AGENDA NO, TO: Mayor and Members of the City Council MEETING DATE: March 1B, 1997 REPORT DATE: March 12, 1997 FROM: Terrence L Belanger, City Manager TITLE: TDA Article 3 (SD 821) Allocation for Fiscal Year 1996-97. SUMMARY: For Fiscal Year 1996-97, the Los Angeles County Metropolitan Transportation Authority allocated $22,945 to the City of Diamond Bar for the construction of various pedestrian and bicycle -related facilities and projects. The City of Diamond Bar is permitted to accumulate funds, which has been done in the past, to use on Capital Improvem ent projects, At this time, it is recommended that Te Fiscal Year 'I996-97 allocation be reserved for future ase. RECOMMENDATION: Thatt�ie City Council reserve the City s $22,945 TDA Article 3 (SB 821) allocation for Fiscal Year 1993-97. LIST OF AT] ACHMLN I S: X Staff Report Public Hearing Notification —Resolutions) _ Bid Specification (on file In City Clerks office) Urd inance(s) _ Other' Agreem e nt(s ) EXTERNAL DISTRIBUTION: SUBMITTAL CHECKLIST: 1, Has the resolution, ordinance or agreen,entbeen _Yes No reviewed by the City Attorneys N/A P. Does the reportrequire a majority votes Ma]ority X Yes No 3. Has environmental impactbeen assessed' NIA Yes No 4. Has the report oeen reviewed by a Commission"' _Yes No Which Comm fission? NIA 5. Are other departments affected by the report`' NIA _ Yes No Reportdiscussed wits the following affected departments INT IALTIIIIIII131 errence Lnger City Manage Assistant City Manager Z'en-rge A. WE City Engineer rlTv rnl cni nFDODT AGENDA NO. MEETING DATE: March 18, 1997 TO: Honorable Mayor and Members of the City Council FROM: Terrence L. Belanger, City Manager SUBJECT: TCA Article 3 (SB 621) Allocation for Fiscal Year 1996-97, ISSUE STATEMENT: Reserve the City s $22,95 TDA Article 3 (SB 821) money allocated for Fiscal Year 1996- 97 RECOMMENDATION: That the City Council reserve the City $22,945 TDA Article 3 (5B 821) allocation for Fiscal Year 1916-9T FINANCIAL SUMMARY: The recommended action has no finarciai impactor the City Fiscal Year 1996-97 budget. BACKGROUND/DISCUSSION: The Los Angeles County Metropolitan Transportation Authority (LACMTA) has allocated $22,945 from TDA Ar'icle 3 (SB 821) fund to -he City of Diamond Bar for Fiscal Year 1996-97. This fund promotes public tans italternatives to the single -occupant vehicles such as pedestrian and bicycle -related facilities. The City of Diamond Bar reserved $20,417 for fiscal year 1995-96. This year's reserve of $22,945 brings the Citys totalfund balance to $43,362. Reserved funds mustbe claimed by the fourth ,Bane 30 from the date they were made available by the LACMTA. Exceptions to this lapsing policy may be made by the LACMTA on a case-by-case basis for jurisdictions banking their annual allocations for future use for specific projects, Staff has identified the Brea Canyon Road parkway improvements (between Fountain Springs Road and Cool Springs Crive) to be funded by SB 821 monies. AtTis time, it is recommended -.hat the $22,945 allocated for Fiscal Year 1996-97 and $20,417 for Fiscal Year 1995-96 be reserved `or this project. T:,�e City is permitted to accumulate funds, which it has done in the past, to use on Capital projects. Prepared BY: David G Liu/Tsedav Aberra INTEROFFICE MEMORANDUM CITY OF DIAMOND BAR TO: Mayor and City Council FROM: Terrence L. Belanger, City Manager�I�F� SUBJECT: Increase in Contract Amount for Special Legal Services DATE: March 18, 1997 RECOMMENDATION: It is recommended that the City Council authorize an additional $5,000 for special legal services related to Days Hotel Transient Occupancy Tax (TOT) lawsuit. DISCUSSION: The City Council has previously authorized monies for special legal services related to Oak Tree Lanes v. Diamond Bar litigation and Days Hotel TOT delinquency lawsuit. Mr. Michael Montgomery has been retained as Associate Attorney to represent the City in these matters. Due to the length and complexity of the Oak Tree Lanes litigation and the costs related thereto, a request for additional monies is necessary to complete the representation of the City regarding the Days Hotel litigation. The City entered into an amended agreement with Mr. Montgomery for $30,000. Staff is requesting an increase in the contract for an additional $5,000. The total cost for legal services related to these matters is $35,000. nbw CITY OF DIAMOND BAR AGENDA REPORT AGENDA NO. (o co TO: Honorable Mayor and Members of the City Council MEETING DATE: March 18, 1997 REPORT DATE: March 13, 1997 FROM: Terrence L. Belanger, City Manager TITLE: Award of Engineering Design Services for Ambushers Street and Meadowglen Road Public Street Improvements. SUMMARY: On February 14, 1997, the Department of Public Works solicited proposals for design services F01_ public street improvements on Ambushers Street and Meadowglen Road. On February 28, 1997, four proposals, from Hall & Foreman Inc., Dewan Lundin & Associates, RKA Civil Engineers, and GFB-Friedrich & Associates, were received. At this time the City proposes to award the design services contract to the most qualified consultant. RECOMMENDATION: That the City Council award the engineering design services contract to Dewan Lundin & Associates for Ambushers Street and Meadowglen Road public street improvements, in an amount not -to - exceed $16,535 and provide a contingency amount of $2,000.00 for contract amendment(s) to be approved by the City Manager, for a total authorization amount of $18,535.00_ LIST OF ATTACHMENTS: X Staff Report Resolutiou(s) Ordinances(s) x Agreement(s) EXTERNAL DISTRIBUTION: SUBMITTAL CHECKLIST. Public Hearing Notification _ Bid Specification (on file in City Clerk's Office) Other: 1. Has the resolution, ordinance or agreement been reviewed x Yes _ No by the City Attorney? 2. Does the report require a majority or 4/5 vote? Majority 3 Has environmental impact been assessed? N/A —Yes _ No 4. Has the report been reviewed by a Commission? N/A _ Yes _ No Which Commission? 5 Are other departments affected by the report? N/A _ Yes _ No Report discussed with the t0llowing affected departments: REVIEWED BY: M�A� JJ __ Terrence L. 1361nger City Manager Fr_ank M. Usher Assistant City Manager George A. Wentz City Engineer CITY CO UNCIL KLYOK 1 AGENDA NO. MEETING DATE: March 18, 1997 TO: Honorable Mayor and Members of the City Council FROM: Terrence L.Belanger, City Manager SUBJECT: Award of Engineering Design Services for Ambushers Street and Meadowglen Road Public Street Improvements. ISSUE STATEMENT The City desires to retain Dewan Lundin & Associates for the design services for public street improvements on Ambushers Street and Meadowglen Road. RECOMMENDATION That the City Council award the engineering design services contract to Dewan Lundin & Associates for Ambushers Street and Meadowglen Road public street improvements, in an amount not -to -exceed $16,535 and provide a contingency amount of $2,000.00 for contract amendment(s) to be approved by the City Manager, for a total authorization amount of $18,535.00. FINANCIAL SUMMARY The total allocated project budget is $650,000.00 of Gas Tax Fund. BACKGROUND/DISCUSSION Ambushers Street, between Woodhill Circle and 20914 Ambushers Street, has been experiencing a constant flow of nuisance -water dishcarge running down the street gutters to the storm drain catch basins near the bottom of the street, accumulating and facilitating the growth of algae and SCUM _ Meadowglen Road, between lronhorse Canyon and Silver Rain Drive; has been experiencing constant nuisance -water discharge ninnig over sidewalks and driveways down the street gutters to the storm drain catch basins located near Silver Rain Drive, creating a similarly hazardous condition with growth of algae and scum. Converse Consultants conducted the geotechnical investigation which evaluated the existing underground infiltration and seepage conditions for the project areas and provided remediation measures to mitigate distress conditions. Various recommendations were made for mitigation within each of the project areas. Arnhushers Sireel. One solution is to construct additional catch basins uphill on Ambushers Street to intercept the nuisance water, extend the storm drain section and design new street sections sufficient with this recommendation. This would relieve the homeowners along the lower sections AMBUSHERSIMEADOWGLEN STREET DESIGN SERVICES MARCH 18, 1997 PAGE 2 of Ambushers Street. Meador>>glen Raod. Recommendation made is to construct a street underdrain system, which would releive the high hydrostatic pressure and control the high groundwater conditions. The street is highly distressed and new street sections will need to be designed. On February 14, 1997, staff contacted the five (5) on-call civil engineering firms and initiated a request for proposal for design services for public street improvements on Ambushers Street and Meadowglen Road. Four proposals, from Hall & Foreman Inc., Dewan Lundin & Associates, RKA Civil Engineers, and GFB-Friedrich & Associates, were submitted for consideration. Proposals from these firms were reviewed and evaluated by staff based on demonstrated track record, adequate number of staff assigned to the job, experience of team members, ability to work with City staff, knowledge of local conditions, involvement with related projects, ability to keep on schedule, ability to stay within budget and demonstrated interest by the consultant. I -he following lists the four firms reviewed and discussed by staff: FIRM .SCHEDULE PROPOSED COST Dewan, Lundin & Associates 8 weeks $16,535.00 GFB-Friedrich & Associates 10 weeks $16,860.00 Hall & Foreman Inc. 8 weeks $20,430.00 RKA Civil Engineers 10 weeks $18,231.00 In consideration of the above mentioned criteria, it is recommended that the City award the contract for the engineering design services for public street improvements on Ambushers Street and Meadowglen Road to Dewan Lundin & Associates in an amount not -to -exceed $16,535.00. Prel.)ared by. Oamid G_ Liu Rose l:. Manelo CONSULTING SERVICES AGREEMENT THIS AGREEMENT is made as of March 18,1997, by and between the City of Diamond Bar, a municipal corporation ("City") and Dewan, Lundin, & Associates, ("Consultant"). RECITALS A. City desires to utilize the services of Consultant as an independent contractor to provide consulting services to City as set forth in Exhibit "A", the City's Request for Proposals dated January 2, 1997. B. Consultant represents that it is fully qualified to perform such consulting services by virtue of its experience and the training, education and expertise of its principals and employees. NOW, THEREFORE, in consideration of performance by the parties of the covenants and conditions herein contained, the parties hereto agree as follows: Consultant's Services. A. Scope of Services. The nature and scope of the specific services to be performed by Consultant are as described in Exhibit "B" the Consultant's Response, dated February 26, 1997 to the City's Request for Proposals. B. Level of Services/Time of Performance. The level of and time of the specific services to be performed by Consultant are as set forth in Exhibit "B." 2. Term of Agreement. This Contract shall take effect March 18, 1997 and shall continue until October 31, 1997, unless earlier terminated pursuant to the provisions herein. 3. Compensation. City agrees to compensate Consultant for each service which Consultant performs to the satisfaction of City in compliance with the schedule set forth in Exhibit "B." Payment will be made only after submission of proper invoices in the form specified by City. Total payment to Consultant pursuant to this Agreement shall not exceed sixteen thousand five hundred thirty-five dollars ($16,535.00). 4. General Terms and Conditions. In the event of any inconsistency between the provisions of this Agreement and Consultant's proposal, the provisions of this Agreement shall control. 5. Addresses City: City Manager Consultant: DL&A City of Diamond Bar Dewan, Lundin & Associates 21660 East Copley Drive Surender Dewan, P.E. Suite 100 12377 Lewis St., 4101 Diamond Bar, California 91765-4177 Garden Grove, CA 92640-4643 714 740 8840 FAX 714 740 8842 6. Status as Independent Consultant. A. Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. B. Consultant agrees to pay all required taxes on amounts paid to Consultant under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. In the event that City is audited by any Federal or State agency regarding the independent contractor status of Consultant and the audit in any way fails to sustain the validity of a wholly independent contractor relationship between City and Consultant, then Consultant agrees to reimburse City for all costs, including accounting and attorney's fees, arising out of such audit and any appeals relating thereto. C. Consultant shall fully comply with the workers' compensation law regarding Consultant and Consultant's employees. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with applicable worker's compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this Section 6. 7. Standard of Performance. Consultant shall perform all work at the standard of care and skill ordinarily exercised by members of the profession under similar conditions. 8. Indemnification. Consultant agrees to indemnify the City, its officers, agents, volunteers, employees, and attorneys against, and will hold and save them and each of them harmless from, and all actions, claims, damages to persons or property, penalties, obligations, or liabilities that may be asserted or claimed by any person, firm, entity, corporation, political subdivision or other organization arising out of the acts, errors or omissions of Consultant, its agents, employees, subcontractors, or invitees, including each person or entity responsible for the provision of services hereunder. In the event there is more than one person or entity named in the Agreement as a Consultant, then all obligations, liabilities, covenants and conditions under this Section 8 shall be joint and several. 9. Insurance. Consultant shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, with an insurance company admitted to do business in California and approved by the City (1) a policy or policies of broad-form comprehensive general liability insurance with minimum limits of $1,000,000.00 combined single limit coverage against any injury, death, loss or damage as a result of wrongful or negligent acts by Consultant, its officers, employees, agents, and independent contractors in performance of services under this Agreement; (2) property damage insurance with a minimum limit of $500,000.00; (3) automotive liability insurance, with minimum combined single limits coverage of $500,000.00; (4) professional liability insurance (errors and omissions) to cover or partially cover damages that may be the result of errors, omissions, or negligent acts of Consultant, in an amount of not less than $1,000,000 per occurrence; and (5) worker's compensation insurance with a minimum limit of $500,000.00 or the amount required by law, whichever is greater. City, its officers, employees, attorneys, rind volunteers shall be named as additional insureds on the policy(ies) as to comprehensive general liability, property damage, and automotive liability. The policy (les) as to comprehensive general liability, property damage, and automobile liability shall provide that they are primary, and that any insurance maintained by the City shall be excess insurance only. A. All insurance policies shall provide that the insurance coverage shall not be non -renewed, canceled, reduced, or otherwise modified (except through the addition of additional insureds to the policy) by the insurance carrier without the insurance tamer giving City thirty (30) day's prior written notice thereof. Consultant agrees that it will not cancel, reduce or otherwise modify the insurance coverage. B. All policies of insurance shall cover the obligations of Consultant pursuant to the terms of this Agreement; shall be issued by an insurance company which is admitted to do business in the State of California or which is approved in writing by the City; and shall be placed with a current A -M. Best's rating of no less that A VII. C. Consultant shall submit to City (1) insurance certificates indicating compliance with the minimum worker's compensation insurance requirements above, and (2) insurance policy endorsements indicating compliance with all other minimum insurance requirements above, not less that one (1) day prior to beginning of performance under this Agreement. Endorsements shall be executed on City's appropriate. standard forms entitled "Additional Insured Endorsement", or a substantially similar form which the City has agreed in writing to accept. 10. Confidentiality. Consultant in the course of its duties may have access to confidential data of City, private individuals, or employees of the City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this section shall survive the termination of this Agreement. Notwithstanding the foregoing, to the extent Consultant prepares reports of a proprietary nature specifically for and in connection with certain projects, the City shall not, except with Consultant's prior written consent, use the same for other unrelated projects. 11. Ownership of Materials. All materials provided by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. 12. Conflict of Interest. A. Consultant covenants that it presently has no interest and shall not acquire any interest, director or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest which would conflict in any manner with the performance of its services pursuant to this Agreement. B. Consultant covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of hardware or software to City as a result of the performance of this Agreement. Consultant's covenant tinder this section shall survive the termination of this Agreement. 13. Termination. Either party may terminate this Agreement with or without cause upon fifteen (15) days' written notice to the other party. However, Consultant shall not terminate this Agreement during the provision of services on a particular project. The effective date of termination shall be upon the date specified in the notice of termination, or, in the event no date is specified, upon the fifteenth (15th) day following delivery of the notice. In the event of such termination, City agrees to pay Consultant for services satisfactorily rendered prior to the effective date of termination. Immediately upon receiving written notice of termination, Consultant shall discontinue performing services. 14. Personnel. Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by Consultant or under it supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant's services under this Agreement, but City reserves the right, for good cause, to require Consultant to exclude any employee from performing services on City's premises. 15. Non -Discrimination and Equal Employment Opportunity. A. Consultant shall not discriminate as to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation, in the performance of its services and duties pursuant to this Agreement, and will comply with all rules and regulations of City relating thereto. Such nondiscrimination shall include but not be limited to the following: employment, upgrading, demotion, transfers, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. B. Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation. C. Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials. 16. Assignment. Consultant shall not assign or transfer any interest in this Agreement nor the performance of any of Consultant's obligations hereunder, without the prior written consent of City, and any attempt by Consultant to so assign this Agreement or any rights, duties, or obligations arising hereunder shall be void and of no effect. 17. Performance Evaluation. For any contract in effect for twelve months or longer, a written annual administrative performance evaluation shall be required within ninety (90) days of the first anniversary of the effective date of this Agreement, and each year thereafter throughout the term of this Agreement. The work product required by this Agreement shall be utilized as the basis for review, and any comments or complaints received by City during the review period, either orally or in writing, shall be considered. City shall meet with Consultant prior to preparing the r,,Titten report. If any noncompliance with the Agreement is found, City may direct Consultant to correct the inadequacies, or, in the alternative, may terminate this Agreement as provided herein. 18. Compliance with Laws. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state, and local governments. 19. Non -Waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default. 20. Attorney's Fees. In the event that either party to this Agreement shall commence any legal or equitable action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action or proceeding shall be entitled to recover its costs of suit, including reasonable attorney's fees and costs, including costs of expert witnesses and consultants. 21. Notices. Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on (a) the day of delivery if delivered by hand during regular business hours or by facsimile before or during regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth in the Agreement, or to such other addresses as the parties may, from time to time, designate in writing pursuant to the provisions of this section. 22. Governing Law. This Contract shall be interpreted, construed and enforced in accordance with the laws of the State of California. 23. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be the original, and all of which together shall constitute one and the same instrument. 24. Entire Agreement. This Agreement, and any other documents incorporated herein by specific reference, represent the entire and integrated agreement between Consultant and City. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by the parties which expressly refers to this Agreement. Amendments on behalf of the City will only be valid if signed by the City Manager or the Mayor and attested by the City Clerk. 25. Exhibits. All exhibits referred to in this Agreement are incorporated herein by this reference. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first xwitten above. "City" ATTEST: CITY OF DIAMOND BAR ma By: City Clerk Mayor Approved as to form: By: City Attorney "CONSULTANT" Dewan. Lundin & Associates B5 a UYR to Cl e -A I V �i✓tn4z Its: t : i c:\X�'P601LINDA-KA� '�,-kGREE-97.. ADDITIONAL INSURED ENDORSEMENT COMPREHENSIVE GENERAL LIABILITY Name and address ofnamed insured (`Named Insured'): Name and address oflnsurance Company ("Company'): General description of agreement(s), permit(s), license(s), and/or activity(ies) insured: Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the "Policy") or in any endorsement now or hereafter attached thereto, it is agreed as follows: 1. The ("Public Agency"), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the "Additional Insureds") under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy. 2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy. 3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company's liability. 4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall covered as third - party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company's limits of liability as provided under the policy. 5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the J-1 ADDITIONAL INSURED ENDORSEMENT COMPREHENSIVE GENERAL LIABILITY written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds 6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non -renewal except after written notice to Public Agency, by certified mail, return receipt requested, not less than thirty (30) days prior to the effective date thereof. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement. 7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds. 8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance. This endorsement and all notices given hereunder shall be sent to Public Agency at: 10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached. TYPE OF COVERAGES TO WHICH POLICY PERIOD LIMITS OF THIS ENDORSEMENT ATTACHES FROM/TO LIABILITY 11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes: J-2 ADDITIONAL INSURED ENDORSEMENT COMPREHENSIVE GENERAL LIABILITY Contractual Liability Owners/Landlords/Tenants Manufacturers/Contractors Products/Completed Operations Broad Form Property Damage Extended Bodily Injury Broad Form Comprehensive General Liability Endorsement Explosion Hazard Collapse Hazard Underground Property Damage Pollution Liability Liquor Liability 12. A deductible or self-insured retention (check one) of S to all coverage(s) except: none, so state). The deductible is applicable per claim or per occurrence (check one). 13. This is an occurrence or claims made policy (check one). 14. This endorsement is effective on of Policy Number applies at 12:01 A.M. and forms a part I(print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company. Executed Phone No.: ( ) 19 Signature of Authorized Representative (Original signature only; no facsimile signature or initialed signature accepted) J-3 ADDITIONAL INSURED ENDORSEMENT COMPREHENSIVE GENERAL LIABILITY ADDITIONAL INSURED ENDORSEMENT AUTOMOBILE LIABILITY Name and address ofnamed insured ("Named Insured'): Name and address oflnsuranee Company ("Company'): General description ofagreement(s), permit(s), license(s), and/or activity(ies) insured: Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the "Policy") or in any endorsement now or hereafter attached thereto, it is agreed as follows: 1. The ("Public Agency'), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the "Additional Insureds") under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy. 2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy. 3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company's liability. 4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall covered as third - party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company's limits of liability as provided under the policy. 5. The insurance afforded by the Policy for contractual liability insurance (subject to the ternis, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds. J-4 ADDITIONAL INSURED ENDORSEMENT AUTOMOBILE LIABILITY 6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non -renewal except after written notice to Public Agency, by certified mail, return receipt requested, not less than thirty (30) days prior to the effective date thereto. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement. 7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds. 8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance. 9. This endorsement and all notices given hereunder shall be sent to Public Agency at: 10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached. TYPE OF COVERAGES TO WHICH POLICY PERIOD THIS ENDORSEMENT ATTACHES FROM/TO LIMITS OF LIABILITY 11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes: Any Automobiles All Owned Automobiles Non -owned Automobiles Hired Automobiles Truckers Coverage Motor Carrier Act Bus Regulatory Reform Act Public Livery Coverage J-5 ADDITIONAL INSURED ENDORSEMENT AUTOMOBILE LIABILITY Scheduled Automobiles Garage Coverage 12. A deductible or self-insured retention (check one) of $ applies to all coverage(s) except: none, so state). The deductible is applicable per claim or per occurrence (check one). 13. This is an occurrence or claims made policy (check one). 14. This endorsement is effective on at 12:01 A.M. and forms a part of Policy Number 1, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company. Executed Phone No.: ( ) 19 Signature of Authorized Representative (Original signature only; no facsimile signature or initialed signature accepted) J-6 ADDITIONAL INSURED ENDORSEMENT AUTOMOBILE LIABILITY ADDITIONAL INSURED ENDORSEMENT EXCESS LIABILITY Name and address ofnamed insured (`Named Insured'): Name and address oflnsurance Company ("Company').- General "Company'). General description of agreement(s), permit(s), license(s), and/or aetivity(ies) insured: Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the "Policy") or in any endorsement now or hereafter attached thereto, it is agreed as follows: 1 _ The ("Public Agency"), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the "Additional Insureds") under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy. 2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy. 3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company's liability. 4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall covered as third - party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company's limits of liability as provided under the policy. 5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the J-7 ADDITIONAL INSURED ENDORSEMENT EXCESS LIABILITY written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds. 6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non -renewal except after written notice to Public Agency, by certified mail, return receipt requested, not less than thirty (30) days prior to the effective date thereto. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement. 7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds. 8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance. This endorsement and all notices given hereunder shall be sent to Public Agency at: 10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached. TYPE OF COVERAGES TO WHICH POLICY PERIOD LIMITS OF THIS ENDORSEMENT ATTACHES FROM/TO LIABILITY Following Form Umbrella Liability 11. Applicable underlying coverages: INSURANCE COMPANY POLICY NO. AMOUNT Fr.] ADDITIONAL INSURED ENDORSEMENT EXCESS LIABILITY 12. The following inclusions, exclusions, extensions or specific provisions relate to the above coverages: 13. A deductible or self-insured retention (check one) of $ to all coverage(s) except: (ifnone, so state). The deductible is applicable per claim or per occurrence (check one). Number applies 13. This is an occurrence or claims made policy (check one). 14. This endorsement is effective on at 12:01 A.M. and forms a part of Policy I, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company. Executed , 19 Phone No.:( ) Signature of Authorized Representative (Original signature only, no facsimile signature or initialed signature accepted) J-9 ADDITIONAL INSURED ENDORSEMENT EXCESS LIABILITY CITY OF DIAMOND BAR MEMORANDUM TO: Mayor and City Council. FROM: Terrence L. Belanger, City Manager VIA: Kellee A. Fritzal, Assistant to the City Manager` SUBJECT: AN AGREEMENT FOR RENEWING A FRANCHISE TO OPERATE A CABLE TELEVISION SYSTEM TO JONES INTERCABLE FRANCHISE AND TRANSFER OF SUCH FRANCHISE TO CITIZENS CENTURY CABLE DATE: March 14, 1997 ISSUE STATEMENT Should the City Council approve " An Ordinance of the City of Diamond Bar Authorizing the Renewal of a Cable Television Franchise Agreement between the City and Jones Intercable, Inc., and Concurrently Authorizing the Assignment or Transfer of that Franchise Agreement by Jones Intercable, Inc. to Citizens Century Cable Television Venture." RECOMMENDATION It is recommended that the City Council approve Ordinance 97 - XX " An Ordinance of the City of Diamond Bar Authorizing the Renewal of a Cable Television Franchise Agreement between the City and Jones Intercable, Inc.,'and Concurrently Authorizing the Assignment or Transfer of that Franchise Agreement by Jones Intercable, Inc. to Citizens Century Cable Television Venture." SUMMARY On March 4, 1997 the City Council conducted a Workshop to discuss the Cable Television Franchise Renewal Agreement. The City and Jones Intercable/Century Communications Corporation have been in the process of negotiating the renewal of the Cable Television Franchise. The renewal process for cable television franchises is governed through Federal Regulations. During the process of the cable franchise negotiations, the City received an application for transfer of the existing franchise from Jones Intercable to Citizens Century Cable Television Venture. The Federal Regulation sets forth a presumption of renewal for the existing cable company. The proposed Agreement consist of the following items: Ten Year Franchise; System upgrade in two tiers: (1) Within two years, installation of seven fiber backbone hub sites to immediately allow for three additional channels, (2) Within six years of the seven fiber backbone hub sites a rebuild of the cable system to not less then 550 Mhz or 78 channels (an increase of 21 channels); Special event coverage between 20 to 25 City events or financial contribution for purchase of equipment for special event coverage. The 1996 Telecommunications Act limited the authority of franchising authorities to approve transfers or sales of cable systems. Within 120 days of such request the City must act upon the request or the request will be considered granted. The cable operator and the franchise authority may also agree to an extension of time. The 120 day period expired on. March 7, 1996; however Jones/Century and the City agreed to an extension to March 18, 1997. Based upon the review of the information required as detailed in the Federal Communication Commission Form 394 "Application for Franchise Authority Consent to Assignment or Transfer of Control of Cable Television Franchise." Jones Intercable and Century Communications have provided the required information. FEDERAL LEGISLATION In 1984, the Federal Government began regulating the cable television franchise process. In 1992, Congress amended the Cable Act to not allow rate regulation except by the Federal Communication Commission (FCC). The new 1996 Telecommunications Act is designed to remove regulatory barriers and encourage competition among the diverse types of communication companies. The focus of the Telecommunication Act was to allow local telephone companies into the long distance and cable television markets. It allows long distance telephone companies, cable operators, cellular providers and others into the local telephone market. The Act encourages satellite services to compete with cable services. The Act loosens telephone and cable rate regulations and loosens regulations of television and radio broadcasters. Congress has expressly prohibited any franchising authority (City or County) from determining cable rates or programming. FRANCHISE RENEWALS Currently, Jones Intercable operates a cable television franchise under the terms and conditions set forth by the County Master Cable Television Ordinance and Ordinance 12,137 as amended and heretofore adopted by the City. This franchise, which was originally approved by the County of Los Angeles Board of Supervisors on April 22, 1980 to Walnut Valley Cable Television and subsequently transferred to Jones Intercable of California, expired on May 23, 2 1995. Prior to the expiration of the franchise, the City Council adopted Ordinance 04 (1995) which extended the term of the cable television franchise. The current extension 04(B) will expire June 3, 1997. The Telecommunication Acts sets forth the methods for renewing cable television franchises. The two methods are formal or informal renewal procedures. The City and Jones Intercable are using the informal renewal process. Congress has defined the criteria for evaluating renewals of cable franchises. The franchising authority must use four stated criteria to determine whether to renew or deny a franchise. The franchising authority must assess whether: ♦ the operator (Jones) "substantially complies" with the terms of the existing franchise and applicable law; ♦ the quality of service, including signal quality, response to consumers' complaints and billing practices has been reasonable in light of community needs; (level of service not mix or quality of service can be reviewed) ♦ the operator has the financial, legal and technical ability to provide the services, equipment and facilities offered in its proposal; and ♦ the operator's proposal is reasonable to meet future cable -related interests and needs of the community, considering the cost of meeting those interests and needs. Denial of renewal cannot be based upon an operator's failure to comply with the terms of the franchise agreement, or on service quality problems (e.g. signal quality, customer service delays) unless the franchise authority has provided the operator with a notice of the problem and opportunity to correct it. Congress has provided for a presumption of renewal for the cable operators. To assist the City in determining Jones Intercable's compliance with the Franchising Agreement and applicable law, the City undertook a technical, financial/customer complaint evaluation of the cable system. In addition, the City conducted a City-wide survey of the Community opinion of the cable system. Below is a summary of the reviews: ♦ Technical Review - Jonathan Kramer performed a technical audit of the system. Based upon this review, Jones Intercable has hired both a Grounding Technician and Maintenance Technician to upgrade the grounding requirements of the California Public Utilities and National Electric Code. Jones has diligently worked towards the upgrading of all homes to the new grounding requirements. 3 ♦ Financial and Customer Complaint Review - The City's auditor, Conrad Associates provided the review. Based upon the customer complaints requirements as set by the existing franchise Jones Intercable is in compliance with the customer complaint requirements. In accordance with the. Agreement, Conrad Associates reviewed the gross revenue collected and reports and cable subscribers. ♦ Cable Television Survey - Pacific Research & Strategies provided a telephone survey of 500 residents. The survey determined that 60% of the subscribers were satisfied with the cable operator and the services currently provided. However, 23% indicated they would like to see more channels or a wider variety of programming. PROPOSED AGREEMENT FOR THE RENEWAL OF CABLE TELEVISION During the renewal process Jones Intercable was sold to Citizens Century Cable Television Venture (a division of Century Communication Corporation). In addition to the renewal of the Cable Television Franchise, the City has been requested to consider the Transfer of the Cable Television Agreement. City staff, Jones Intercable and Century Communication have been negotiating an Agreement regarding the renewal of the Cable Television Franchise. The City Council Sub -committee has met with Jones Intercable and Century Communications regarding the proposed Agreement. The proposed Agreement calls for the following: ♦ Ten (10) year Agreement ♦ System Upgrade - Two tiers (1) Within two years from adoption seven (7) fiber backbone hub sites will be installed. The seven hub sites will allow for three (3) additional channels to be added to the line-up, which create the ability to deliver segmented programming by hub site, rather then to the entire system. The fiber backbone hub sites will serve approximately 2,600 homes. (2) Within six (6) years of the installation of the seven backbone hub sites (no later than December 21, 2004), Grantee (Jones/Century) will complete a rebuild of the cable system to not less then 550MHz or 78 channels. This upgrade will increase the channel capability by 21 channels. ♦ Performance Bond for the construction phase of $500,000. Performance Bond for Franchise Agreement of $100,000. ♦ Bonus incentive for the timely completion of the upgrade of an additional five (5) year term. ♦ Coverage of Special Events of between 10 to 15 community events or financial contribution for the purchase of equipment for the Governmental Programming. 4 ♦ The Agreement calls for the continuation of the Educational, Governmental and Local Origination requirements. The Agreement does not call for public access provisions. Century Communications provides an assistance plan (CAP) for low-income residents. The assistance plans calls for a 20% discount on Basic Service Only. Currently Jones Intercable does not provide for such a discount program. It should be noted that such discounts cannot be a required condition of renewal. The upgrade of the system to fiber optic will carry a higher quality broadcast to subscribers. For a local cable operator to remain competitive in the deregulated industry they will need to provide a high quality of service, as provided by a fiber optic upgrade. TRANSFER OF CABLE TELEVISION SYSTEMS In accordance with the Federal Regulations, the City received FCC Form 394 and accompanying documents that relate to the proposed transfer of the existing Cable Television Franchise by Jones Intercable to an entity identified as "Citizens Century Cable Television Venture". The City and City Attorney's Office reviewed the submittal requested additional information, the transfer package is complete and in accordance with the Federal Regulations. The Citizens Century Cable Television Venture is owned by two corporate entities. Those entities are Century Telecommunication Venture Corp and Citizen Cable Company. There is a Management Agreement between the Venture and Century Communications Corp. to authorize that Century Communications Corporation manage the activites of the cable television franchise. Attachment PIKU ORDINANCE NO. AN ORDINANCE OF THE CITY OF DIAMOND BAR AUTHORIZING THE RENEWAL OF A CABLE TELEVISION FRANCHISE AGREEMENT BETWEEN THE CITY AND JONES INTERCABLE, INC., AND CONCURRENTLY AUTHORIZING THE ASSIGNMENT OR TRANSFER OF THAT FRANCHISE AGREEMENT BY JONES INTERCABLE, INC. TO CITIZENS CENTURY CABLE TELEVISION VENTURE THE CITY COUNCIL OF THE CITY OF DIAMOND BAR DOES ORDAIN AS FOLLOWS: Section 1. This ordinance is adopted in consideration of the following facts and circumstances: A. Jones Intercable, Inc., a Colorado corporation, ("Franchisee") is the duly authorized holder of a franchise ("Franchise") that authorizes the construction, operation, and maintenance of a cable television system within the City of Diamond Bar ("Franchise Authority"). B. In accordance with Ordinance No. 04 B adopted by the City Council on December 3, 1996, the Franchise will terminate in its entirety on May 31, 1997. C. Negotiations between the Franchise Authority and the Franchisee commenced in mid-1996 and have resulted in a new agreement entitled "An Agreement between the City of Diamond Bar and Jones Intercable, Inc., Renewing a Nonexclusive Franchise to Operate a Cable Television System in the City of Diamond Bar and Setting Forth Terms and Conditions Relating to the Renewal of the Franchise" ("Franchise Renewal Agreement"). D. During the renewal negotiations between the Franchise Authority and the Franchisee, the Franchisee gave notice of its intention to sell and transfer the Franchise to Citizens Century Cable Television Venture, a joint venture organized under the laws of the State of New York and comprised of Citizens Cable Company, a Delaware corporation, and Century Telecommunications Venture Corp., a Delaware corporation ("Transferee"). E. On November 7, 1996, the Franchise Authority received from the Franchisee and the Transferee an application for a transfer of control of the existing Franchise, which application included FCC Form 394 entitled "Application for Franchise Authority Consent to Assignment or Transfer of Control of Cable Television Franchise." F. In accordance with Section 13.12.540 of Chapter 13.12 of the Diamond Bar Municipal Code, the Franchise Authority has the right to review and approve the financial, technical, and legal qualifications of the Transferee in connection with the proposed transfer of control of the Franchise. G. The staff of the Franchise Authority has reviewed the documentation that accompanied FCC Form 394 and, based upon the representations set forth in that documentation, has concluded that the proposed Transferee has the requisite financial, technical, and legal qualifications to adequately perform, or to ensure the performance of, all obligations required of the Franchisee under the Franchise, and that the Transferee will be bound by all existing terms, conditions, and obligations under the Franchise previously granted by the Franchise Authority to the Franchisee. Section 2,. The Franchise Authority authorizes the renewal of a nonexclusive franchise with Franchisee to construct, operate, and maintain a cable television system within the City. This authorization is made in accordance with the applicable provisions of Division 6 ("Renewal") of Chapter 13.12 of the Diamond Bar Municipal Code, the applicable provisions of state and federal law, and the terms and conditions of that certain Franchise Renewal Agreement attached as Exhibit A to this ordinance and incorporated by this reference. Section 3. That certain Franchise Renewal Agreement attached as Exhibit A to this ordinance is authorized and approved, and the Mayor is authorized to execute that agreement on behalf of the Franchise Authority following its execution by the Franchisee. Section 4. Upon execution of the Franchise Renewal Agreement by the parties as provided for above in Section 3, the Franchise Authority, in accordance with Section 13.12.540 of Chapter 13.12 of the Diamond Bar Municipal Code, consents to and approves the proposed sale and transfer of control of the Franchise by Jones Intercable, Inc. to Citizens Century Cable Television Venture, conditioned upon compliance with the following requirements, as to which the Franchisee and the Transferee are jointly and severally responsible: A. The Franchisee and the Transferee will execute and file in the office of the City Clerk an "Assignment and Assumption Agreement" in substantially the form attached to this ordinance as Exhibit B. The Mayor is authorized to execute that document and thereby evidence the written consent of the Franchise Authority to the assignment and assumption of all rights and obligations under the Franchise Renewal Agreement. B. An original or conformed copy of the written instrument evidencing the closing and consummation of the proposed sale and transfer of the Franchise by the Franchisee to the Transferee must be filed in the office of the City Clerk within thirty (30) days after that closing and consummation. C. The Franchise Authority will be reimbursed for all costs and expenses reasonably incurred by the Franchise Authority's staff in processing and evaluating the information relating to the proposed sale and transfer of the Franchise; provided, however, that those costs and expenses will not exceed the sum of $5,000 and will be set forth in an itemized statement transmitted by the City Manager, or the City Manager's designee, to the Franchisee and the Transferee within thirty (30) days after the effective date of this ordinance. Section 5. The City Clerk is directed to transmit a certified copy of this ordinance to Mr. Clifford A. Bail, vice President - Legal Affairs and Corporate Counsel, Century Communications Corporation, 50 Locust Avenue, New Canaan, Connecticut 06840-4750, and to Thomas E. Carlock, Esq., Counsel for Jones Intercable, Inc., 9697 E. Mineral Avenue, Englewood, Colorado 80155-3309. Section 6. The City Clerk is directed to certify to the passage and adoption of this ordinance and to cause it to be published or posted as required by law. PASSED, APPROVED, AND ADOPTED this day of 1997. Mayor I, Lynda Burgess, City Clerk of the City of Diamond Bar, certify that the foregoing ordinance was introduced at a regular meeting of the City Council of the City of Diamond Bar held on the day of , 1997, and was finally adopted at a regular meeting of the City Council of the City of Diamond Bar held on the day of 1997, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ATTEST: City Clerk, City of Diamond Bar - 3 - AN AGREEMENT BETWEEN THE CITY OF DIAMOND BAR AND JONES INTERCABLE, INC., RENEWING A NON-EXCLUSIVE FRANCHISE TO OPERATE A CABLE TELEVISION SYSTEM IN THE CITY OF DIAMOND BAR AND SETTING FORTH TERMS AND CONDITIONS RELATING TO THE RENEWAL OF THE FRANCHISE. ASSIGNMENT AND ASSUMPTION AGREEMENT (CABLE TELEVISION FRANCHISE AGREEMENT) THIS ASSIGNMENT AND ASSUMPTION AGREEMENT ("Agreement") is made and entered into this day of , 1997, by and between Jones Intercable, Inc., a Colorado corporation ("Assignor"), Citizens Century Cable Television Venture, a joint venture organized under the laws of the State of New York ("Assignee"), and the City of Diamond Bar, a California municipal corporation ("Franchise Authority"). A. Assignor is the authorized holder of a franchise that authorizes the construction, operation, and -maintenance of a cable television system within the City of Diamond Bar, California. Assignor's nonexclusive cable television franchise was renewed by the Franchise Authority by Ordinance No. adopted on , 1997. B. Subject to the prior consent of the Franchise Authority, Assignor desires to assign and transfer to Assignee, and Assignee desires to assume, all rights, duties, and obligations under that certain agreement approved by Ordinance No. and entitled "An Agreement between the City of Diamond Bar and Jones Intercable, Inc., Renewing a Nonexclusive Franchise to Operate a Cable Television System in the City of Diamond Bar and Setting Forth Terms and Conditions Relating to the Renewal of the Franchise" ("Franchise Renewal Agreement"). THE PARTIES AGREE AS FOLLOWS: 1. Assignor assigns and transfers to Assignee all of Assignor's rights, duties, and obligations under the Franchise Renewal Agreement. 2. Assignee covenants and agrees with Assignor and with the Franchise Authority to assume all rights and to assume and perform all duties and obligations of the Assignor under the Franchise Renewal Agreement. 3. Franchise Authority consents to the assignment and transfer by Assignor to Assignee of all rights, duties, and obligations specified in the Franchise Renewal Agreement. TO EFFECTUATE THIS AGREEMENT, the parties have caused this Assignment and Assumption Agreement to be executed by their duly authorized representatives as of the date set forth below the authorized signature. APPROVED AS TO FORM: Legal Counsel APPROVED AS TO FORM: Legal Counsel APPROVED AS TO FORM: City Attorney ATTEST: City Clerk "ASSIGNOR" JONES INTERCABLE, INC. By — Title Date "ASSIGNEE" CITIZENS CENTURY CABLE TELEVISION VENTURE By Title . Date "FRANCHISE AUTHORITY" CITY OF DIAMOND BAR By Mayor Date AN AGREEMENT BETWEEN THE CITY OF DIAMOND BAR AND JONES INTERCABLE, INC., RENEWING A NON- EXCLUSIVE FRANCHISE TO OPERATE A CABLE TELEVISION SYSTEM IN THE CITY OF DIAMOND BAR AND SETTING FORTH TERMS AND CONDITIONS RELATING TO THE RENEWAL OF THE FRANCHISE. TABLE OF CONTENTS Page 1. RENEWAL OF FRANCHISE , , , , , , , , , , , , , , , , , , 2 1.1. Parties to the Agreement . . . . . . . . . . . . 2 1.2. Representatives of the Parties and Service of Notices . . . . . . . . . . . . . . . . . . . . . 2 1.3. Definitions . . . . . . . . . . . . . . . . . . . 3 1.4. Conflicts . . . . . . . . . . . . . . . . . . . . 3 1.5. Grant , , , , , , , , , , , , , , , , , , , , , , 3 1.6. Right of Grantor to Issue and Renew Franchise . . 4 1.7. Effective Date of Renewal . . . . . . . . . . . . 4 1.8. Duration , , , , , , , , , , , , , , , , , , , , 4 1.9. Franchise Not Exclusive . . . . . . . . . . . . . 5 1.10. Scope of the Franchise . . . . . . . . . . . . . 5 2. GENERAL REQUIREMENTS . . . . . . . . . . . . . . . . . . 6 2.1. Governing Requirements . . . . . . . . . . . . . 6 2.2. Franchise Fee . . . . . . . . . . . . . . . . 7 2.3. Payment to Grantor . . . . . . . . . . . . . . . 8 2.4. Insurance Requirements . . . . . . . . . . . . . 8 2.5. Performance Bonds .., , , , , , , , , , , , , , 11 2.6. Periodic Adjustments . . . . . . . . . . . . . . 13 3. RIGHTS RESERVED TO THE GRANTOR . . . . . . . . . . . . . 14 3.1. Reservation . . . . . . . . . . . . . . . . . . . 14 3.2. Delegation of Powers . . . . . . . . . . . . . 14 3.3. Right of Inspection of Construction . . . . . . . 14 3.4. Right to Require Removal of Property . . . . . . 15 3.5. Right of Intervention . . . . . . . . . . . . . . 15 4. SYSTEM UPGRADE AND REBUILD AND SPECIAL SERVICES . . . . 15 4.1. Upgrade and Rebuild . . . . . . . . . . . . . . . 15 4.2. Outlets for Public Buildings . . . . . . . . . . 17 4.3. Emergency Alert Capability . . . . . . . . . . . 17 4.4. No Offset Against Franchise Fees . . . . . . . . 1S 4.5. Parental Control Devices . . . . . . . . . . . . 18 4.6. Technical Standards . . . . . . ... . . . . . . . 18 5. SERVICES, PROGRAMMING AND CONSUMER PROTECTION STANDARDS . . 18 5.1. Services and Programming . . . . . . . . . . . . 18 5.2. Discounts for Low Income Residents . . . . . . . 19 5.3. Leased Channel Service . . . . . . . . . . . . 19 5.4. Nondiscrimination . . . . . . . . . . . . . . . . 19 5.5. Billings . . . . . . . . . . . . . . . . . . . . 20 5.6. Subscriber "Bill of Rights" . . . . . . . . . . . 20 5.7. Consumer Protection Standards . . . . . . . . . . 20 5.8. Tapping and Monitoring . . . . . . . . . . . . . 20 5.9. Subscriber Privacy Rights . . . . . . . . . . . . 21 5.10. Disclosure of Subscriber Lists . . . . . . . . . 21 970204 10572-00009 18j 0592880 0 - i- 6. SUPPORT OF LOCAL CABLE USAGE . . . . . . . . . . . . . . 21 6.1. Governmental Access Channel . . . . . . . . . . . 21 6.2. Educational Access Channel . . . . . . . . . . . 22 6.3. Local Origination Programming . . . . . . . . . . 22 6.4. Coverage of Special Events . . . . . . . . . . . 2.2 6.5. Financial Support for Governmental Access Channel . . . . . . . . . . . . . . . . . . . . . 22 6.6. Compliance with Federal Law . . . . . . . . . . . 23 6.7. Grantor's Covenant Not to Compete . . . . . . . . 24 7. DESIGN AND CONSTRUCTION . . . . . . . . . . . . . . . . 24 7.1. System Construction . . . . . . . . . . . . . . . 24 7.2. Construction Components and Techniques . . . . . 24 7.3. Technical and Performance Standards . . . . . . . 24 7.4. Construction Codes . . . . . . . . . . . . . . . 24 7.5. Construction Default . . . . . . . . . . . . . . 25 7.6. Vacation or Abandonment . . . . . . . . . . . . . 25 7.7. Abandonment in Place . . . . . . . . . . . . . . 26 7.8. Removal of System Facilities . . . . . . . . . . 26 7.9. Movement of Facilities . . . . . . . . . . . . . 27 7.10. Undergrounding of Cable . . . . . . . . . . . . . 27 7.11. Facility Agreements . . . . . . . . . . . . . . . 27 7.12. Repair of Streets and Public Ways . . . . . . . . 27 7.13. Erection of Poles Prohibited . . . . . . . . . . 28 7.14. Reservation of Street Rights . . . . . . . . . . 28 8. PERFORMANCE AUDITS AND TECHNICAL DATA . . . . . . . . . 28 8.1. Biennial Audit of Performance . . . . . . . . . . 28 8.2. System Technical Data . . . . . . . . . . . . . . 30 8.3. Emergency Repair Capability . . . . . . . . . . . 30 9. REVOCATION AND FORFEITURE . . . . . . . . . . . . . . . 31 9.1. Revocation . . . . . . . . . . . . . . . . . . . 31 9.2. Forfeiture . . . . . . . . . . . . . . . . . . . 31 10. RECORDS; REPORTS; RIGHT TO INSPECT AND AUDIT; EXPERTS 31 10.1. Grantee to Provide Records . . . . . . . . . . . 31 10.2. Records . . . . . . . . . . . . . . . . . . . . . 32 10.3. Maintenance and Inspection of Records . . . . . . 32 10.4. Reports of Financial and Operating Activity . . . 32 10.5. Performance Tests and Compliance Reports . . . . 33 10.6. Additional Reports . . . . . . . . . . . . . . . 33 10.7. Communications with Regulatory Agencies . . . . . 34 10.8. Inspection of Facilities . . . . . . . . . . . . 34 10.9. Right to Audit . . . . . . . . . . . . . . . . . 34 10.10. Retention of Experts . . . . . . . . . . . . . . 35 11. ENFORCEMENT PROCEDURES . . . . . . . . . . . . . . . 36 11.1. Notice and Hearing upon Grantee's Default . . . . 36 11.2. Delegation . . . . . . . . . . . . . . . . . . . 38 12. CONTINUITY OF CABLE TELEVISION SYSTEM SERVICES . . . . . 38 12.1. Continuity of Service . . . . . . . . . . . . . 38 12.2. Operation and Management By Grantor . . . . . . . 39 970204 10572-00009 lsj 0592880 0 — i i — 13. MISCELLANEOUS PROVISIONS . . . . . . . . . . . . . . . . 40 13.1. Assignment, Transfer, Sale, and Change of Control . . . . . . . . . . . . . . . . . . . . . 40 13.2. Force Majeure . . . . . . . . . . . . . . . . . . 42 13.3. Possessory Interest . . . . . . . . . . . . . . . 42 13.4. Indemnification . . . . . . . . . . . . . 43 13.5. Conflict of Interest . . . . . . . . . . . . . . 44 13.6. Resolution of Disputes . . . . . . . . . . . . . 44 13.7. Amendments . . . . . . . . . . . . . . . . . . . 45 13.8. Binding Upon Successors . . . . . . . . . . . . . 45 13.9. Counterpart Execution . . . . . . . . . . . . . . 45 13.10. Applicable Law . . . . . . . . . . . . . . . . . 45 14. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . 45 15. COMPETITIVE CABLE -TELEVISION FRANCHISES. . . . . . . . . 52 16. AUTHORITY AND EFFECTIVE DATE. . . . . . . . . . . . . . 53 16.1. Authority . . . . . . . . . . . . . . . . . . . . 53 16.2. Effective Date . . . . . . . . . . . . . . . . . 53 EXHIBIT A CHAPTER 13.12 OF THE DIAMOND BAR CODE AS ADOPTED AND IN EFFECT ON THE EFFECTIVE DATE OF FRANCHISE RENEWAL . . . . . . . . . . . . . . . . . . . . A-1 EXHIBIT B OWNERSHIP . . . . . . . . . . . . . . . . . . . B-1 EXHIBIT C DESCRIPTION OF AND PERFORMANCE CRITERIA FOR THE UPGRADE AND REBUILD OF THE CABLE SYSTEM TO BE COMPLETED BY GRANTEE . . . . . . . C-1 EXHIBIT D CONSUMER PROTECTION STANDARDS . . . . . . . . . D-1 970204 10572-00009 lsj 0592880 0 — i ii — FRANCHISE AGREEMENT THIS FRANCHISE AGREEMENT ("Agreement") is entered into this day of , 1997, at Diamond Bar, California, by the City of Diamond Bar, a municipal corporation of the State of California ("Grantor"), and Jones Intercable, Inc., a Colorado corporation, ("Grantee"). RECITALS A. In 1989, Grantor adopted Ordinance No. 14 in substantially the format previously adopted by the County of Los Angeles in its Ordinance No. 11824. Ordinance No. 14 was thereafter codified in Chapter 13.12 of the Diamond Bar Code ("Code"), a copy of which is attached as Exhibit A and incorporated by this reference. B. In accordance with Chapter 13.12, Grantor is authorized to issue and to renew one or more non-exclusive revocable franchises to construct, reconstruct, operate, and maintain a cable television system in the City of Diamond Bar. C. After due evaluation of the Grantee, and after public hearings, Grantor has determined that it is in the best interests of the Grantor and its residents to renew its franchise with Grantee. NOW, THEREFORE, in accordance with the provisions of Chapter 13.12 and this Agreement, Grantor grants to the Grantee, and Grantee accepts from the Grantor, a renewal of a cable television franchise. 970204 10572-00009 lsj 0592880 0 — I — 1. RENEWAL OF FRANCHISE. 1.1. Parties to the Agreement. The parties to this Agreement are: (a) Grantor: The City of Diamond Bar, a municipal corporation, having its principal office at 21660 Copley Drive, Diamond Bar, California 91765. (b) Grantee: Jones Intercable, Inc., a Colorado corporation, with ownership as set forth in Exhibit B, and having a local office in this state at 20965 Lyncoming Street, Walnut, California 91789. 1.2. Representatives of the Parties and Service of Notices. The representatives of the parties who are primarily responsible for the administration of this Agreement, and to whom formal notices, demands and communications must be given, are as follows: (a) The principal representative of the Grantor is: City Manager Diamond Bar City Hall 21660 Copley Drive, Suite 100 Diamond Bar, California 91765 (b) The principal representative of the Grantee is: General Manager Jones Intercable, Inc. 20965 Lyncoming Street Walnut, California 91789 (c) Formal notices, demands and communications to be given by either party must be in writing and may be effected by personal delivery, or by first class or certified mail, return receipt requested. 970204 10572-00009 lsj 0592880 0 — 2 — (d) If the name of the principal representative designated to receive the notices, demands, or communications, or the address of that person, is changed, written notice must be given within five (5) working days of that change. 1.3. Definitions. Unless otherwise defined, or if the use or context clearly requires a different definition, certain words, terms, and phrases and their derivations, as used in this Agreement have the meanings set forth below in Section 14 of this Agreement. 1.4. Conflicts. In the event of any conflict or inconsistency between the provisions of this Agreement and the provisions of Chapter 13.12 of the Code, as it now exists or as it may hereafter be amended, modified, or revised, the provisions of this Agreement will control. 1.5. Grant. The cable television system franchise originally granted by Los Angeles County Ordinance No. 12,137 on April 22, 1980, to Walnut Valley Cable Television and thereafter transferred, with the consent of Los Angeles County, to Grantee on January 11, 1989, is hereby renewed, subject to the terms and conditions of this Agreement and the provisions of Chapter 13.12 of the Code, all of which supersede in their entirety the terms, conditions, and provisions of all prior ordinances relating to this franchise. This renewal extends the franchise, authority, right, and privilege to construct, reconstruct, operate, and maintain a cable television system in the "franchise service area" that is here defined as the territorial limits of the City of Diamond Bar as they exist on the effective date of this 970204 10572-00009 lsj 0592880 0 — 3 — Agreement, and any additional territory that may be annexed during the term of this Agreement. 1.6. Right of Grantor to Issue and Renew Franchise. Grantee expressly acknowledges the right and authority of Grantor to issue and renew the franchise, and Grantee agrees it will not hereafter challenge Grantor's exercise of this right and authority in any court of competent jurisdiction, or otherwise. 1.7. Effective Date of Renewal. This franchise renewal will commence on the effective date of the ordinance authorizing the renewal, or on the date specified in that ordinance as the effective date of renewal. Prior to the effective date, Grantee must file with the City Clerk its written acceptance of the ordinance renewing the franchise. That acceptance may be in the Form of Grantee's signature on the face of the ordinance. Within thirty (30) days after the effective date of the ordinance, Grantee must file with the City Clerk any required performance bonds and insurance policies or insurance certificates; provided, however, that if the filing of these documents does not occur within that thirty (30) day period, or any authorized extension of that period, the Grantor may declare this franchise renewal null and void. 1.8. Duration. The term of the franchise renewal is ten (10) years from the effective date as specified in Section 1.7; provided, however, that this franchise will be extended for an additional period of five (5) years upon Grantee's timely completion of the upgrade and rebuild of the cable system that is more fully described in the attached 970204 10572-00009 lsj 0592880 0 — 4 — Exhibit C. Renewal of the franchise, if any, will be in accordance with then applicable law. 1.9. Franchise Not Exclusive. The cable television fran- chise granted by this Agreement may not be construed to limit in any manner the right of Grantor, through its authorized officers and in accordance with applicable law, to grant to other individuals or entities, by franchise, permit, license, or otherwise, any rights, privileges or authority similar to or different from the rights, privileges and authority herein set forth, in the same or other streets, public ways, public places, or other property that the Grantee is entitled to occupy; provided, however, that those additional grants will not operate to revoke, terminate, or materially and adversely affect any rights granted to Grantee by this Agreement; and provided, further, that the provisions of Section 16 of this Agreement will be applicable to future cable-television franchises. 1.10. Scope of the Franchise. (a) Grantee is authorized and obligated to construct, reconstruct, and operate the cable television system within the public streets and rights-of-way. The authority granted includes the privilege to use the Grantee's cable television system in the franchise service area for the provision of cable television services, as well as other services authorized by Grantor that are not cable television services, to subscribers located in residential dwelling units and commercial structures. (b) Grantor reserves all rights it now has or subsequently acquires with respect to the authorization and 970204 10572-00009 lsj 0592880 0 — 5 — regulation of non -cable television services, including, but not limited to, the right to impose reasonable terms and conditions in addition to or different from those set forth in this Agreement with respect to the provision of any non -cable television services, and to charge a franchise fee or other form of consideration or compensation in excess of that specified herein; provided that such terms and conditions and such franchise fee or other form of consideration or compensation must be consistent with federal and state law applicable to non -cable television services delivered over the cable system; and provided further that the Grantor and Grantee will negotiate in good faith as to those terms and conditions and that franchise fee or other form of consideration or compensation prior to any unilateral implementation by the Grantor, which terms and conditions may ultimately be unilaterally modified by the Grantor if not otherwise prohibited by applicable law. (c) Grantee must provide written notice to the Grantor at least thirty (30) days before offering or distributing of any non -cable television -services over the cable system. (d) Grantor and Grantee expressly reserve the right to seek a judicial determination as to whether any particular service offered by Grantee on its system constitutes cable television service for purposes of this franchise. 2. GENERAL REQUIREMENTS. 2.1. Governinct Requirements. Grantee must comply with all provisions of this Agreement, the provisions of Chapter 13.12 of the Code, and all other applicable laws and regulations. 970204 10572-00009 lsj 0592880 0 — 6 — 2.2. Franchise Fee. (a) As compensation for the franchise granted by Grantor, and in consideration for authorization to use the streets and public ways of Grantor for the construction, reconstruction, operation, and maintenance of Grantee's cable television system, the Grantee will pay to the Grantor the following: An annual franchise fee of five percent (5%) of the Annual Gross Receipts, as defined in Section 14 of this Agreement, received by Grantee from the operation of the cable television system in the Grantor's franchise service area, including those revenues received by Grantee from sources other than subscribers in connection with the transmission of advertisements, the provision of programming, and the distribution of other authorized services over the Grantee's system within the franchise service area. (b) The franchise fee specified above in paragraph (a) must be computed and paid by Grantee to Grantor's Finance Department on a quarterly basis, on or before April 20, July 20, and October 20 of each calendar year. The payment for the last calendar quarter will be adjusted following Grantee's review of its Annual Gross Receipts and must be paid not later than sixty (60) days after the end of each calendar year. This payment must be accompanied by the reports specified in Subsection 10.4 of this Agreement. (c) If the franchise fee "true -up" payment referenced above in the second sentence of paragraph (b) is not made on or 970204 10572-00009 lsj 0592880 0 — 7 before the date specified, Grantee must pay as additional compensation an interest charge, computed from the applicable due date, at an annual rate equal to the prevailing commercial prime interest rate in effect on the due date, plus one percent (1%). (d) In addition to any late payment made in accordance with paragraph (c) above, if a payment is overdue by sixty (60) days or more, Grantee will pay to Grantor a sum of money equal to five percent (5%) of the amount due in order to defray additional costs and expenses incurred by Grantor as a consequence of that delinquent payment. 2.3. Payment to Grantor. (a) No acceptance of any payment by Grantor may be construed as an accord that the amount is in fact the correct amount, nor may acceptance of payment be construed as a release of any claim the Grantor may have against Grantee for any additional sums payable under the provisions of this Agreement. (b) All amounts paid are subject to independent audit and recomputation by Grantor. If, after audit, any recomputation indicates a franchise fee underpayment of more than three percent (3%-), Grantee must reimburse Grantor, within twenty (20) days of written notification, for all reasonable costs and expenses incurred in connection with that audit and recomputation. 2.4. Insurance Reauirements. (a) Upon the effective date of this Agreement, Grantee, at its sole cost and expense, must obtain, and 970204 10572-00009 lsj 0592880 0 — 8 — thereafter maintain for the full term of this Agreement all of the following insurance coverages: 1. Types of Insurance and Minimum Limits. The coverages required below may be satisfied by any combination of primary liability and excess liability policies. A. Workers' Compensation and Employer's Liability Insurance in conformance with the laws of the State of California. B. Grantee's vehicles, including owned, non -owned (i.e., owned by Grantee's employees and used in the course and scope of employment), leased, or hired vehicles, must each be covered with Automobile Liability Insurance in the minimum amount of one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage. C. Grantee must obtain and maintain Comprehensive or Commercial General Liability Insurance coverage in the aggregate annual amount of one million dollars ($1,000,000) combined single limit, including bodily injury, personal injury, and broad form property damage. This insurance coverage must include, without limitation: (i) Contractual liability coverage adequate to meet the Grantee's indemnification obligations under this Agreement; and (ii) a cross -liability clause. D. Grantee must obtain and maintain Slander/Libel/Defamation Liability Insurance in the aggregate amount of one million dollars ($1,000,000). 970204 10572-00009 lsj 0592880 0 - 9 - 2. All required Automobile Liability Insurance and Comprehensive or Commercial General Liability Insurance policies must contain the following endorsement: "The City of Diamond Bar is added as an additional insured as respects the operations of the named insured under the cable television franchise granted by the City, and this insurance specifically covers the acts and omissions of Grantee, and its employees, agents, and subcontractors, in the performance of all work thereunder." 3. The insurance required of Grantee under this franchise is primary, and no insurance held by Grantor may be called upon to contribute to a loss under this coverage. 4. All insurance policies must provide that, in the event of material change, reduction, cancellation, or non- renewal by the insurance carrier for any reason, not less than thirty (30) days, written notice will be given to Grantor by registered mail of such intent to cancel, materially change, reduce, or not renew the coverage. An authorized agent of the insurance carrier must provide to the Grantor, on such schedule as is requested by the Grantor, a certification that all insurance premiums have been paid and all coverages are in force. If for any reason Grantee fails to obtain or keep any of the insurance in force, Grantor may (but is not required to) obtain that insurance. In that event, Grantee must promptly reimburse 970204 10572-00009 19j 0592880 0 - 10 - Grantor its premium costs therefor, plus one and one-half percent (1-1/296) monthly interest thereon until paid. 5. All insurance must be obtained from companies that are licensed to do business in California. 6. Any deductible or self-insured retentions in excess of $350,00 must be approved by Grantor. (b) Grantee must provide to Grantor, within thirty (30) days after the effective date of this Agreement, written insurance binders, statements of property coverage, or certificates of insurance. (c) Grantor reserves the right to require Grantee to increase the amount or limits of insurance coverage specified above no more often than every three (3) years during the term of the franchise. Any such increase will be determined in accordance with the procedures set forth in Subsection 2.6 of this Agreement. 2.5. Performance Bonds. (a) Performance Bond for Construction. During the term of this Agreement, Grantee may be required to provide to Grantor a performance bond if Grantor determines that any construction, reconstruction, or upgrade of the cable television system is of sufficient magnitude to warrant a performance bond. The performance bond, which may be a corporate surety bond, must be in a principal sum as specified by Grantor and in a form approved by Grantor's City Attorney; provided, however, that the principal sum of the performance bond may not exceed $500,000. The performance bond may be reduced during the course of 970204 10572-00009 19i 0592880 0 - 11 Grantee's construction, reconstruction, or upgrade of the cable television system, provided that Grantee is not then in material default under any provision of this Agreement. (b) Performance Bond for Other Obligations. Within thirty (30) days after the effective date of this Agreement, Grantee must provide to Grantor a performance bond to guarantee the Grantee's performance of its obligations under this Agreement, excluding those obligations relating to construction referenced above in paragraph (a). The performance bond will be in the sum of not less than One Hundred Thousand Dollars ($100,000) and will be subject to and in compliance with the following requirements: 1. The performance bond will be available to Grantor to secure and to satisfy any and all claims, penalties, liens, fees, payments, costs, damages, or taxes due Grantor from Grantee that arise by reason of the operation or maintenance of the cable television system. 2. After notice and hearing requirements specified in Section 11 of this Agreement have been satisfied, if the Grantee fails or refuses to pay to the Grantor any amounts due under the terms and provisions of this Agreement, the Grantor may thereafter claim against the performance bond the amount thereof, plus accrued interest and penalties. 3. Within thirty days after Grantee's receipt of written notice from the Grantor that any amount has been claimed and received by the Grantor under the performance bond in satisfaction of any of Grantee's obligations specified above in 970204 10572-00009 lsj 0592880 0 12 — subsection (1), the Grantee must restore the performance bond to the amount required by this Agreement. 4. The rights reserved to the Grantor with respect to this performance bond are in addition to all other rights of the Grantor pursuant to this Agreement, including Grantor's rights under the performance bond for construction referenced above in paragraph (a). The Grantor's exercise of rights with respect to this security bond will not constitute an election of remedies or a waiver of any other rights the Grantor may have. (c) Adjustments. Grantor reserves the right to require Grantee to increase the principal amount of the performance bond specified above in paragraph (b), and the insurance coverage specified above in Section 2.4, no more often than every three (3) years during the term of the franchise. Any such increase will be determined in accordance with the procedures set forth in Section 2.6 of this Agreement. 2.6. Periodic Adjustments. If the amount of the performance bond or insurance coverage required of Grantee under this Agreement is proposed to be increased at specified intervals during the term of the franchise, any such increase will be determined in accordance with the following procedures: The increase in any amount subject to periodic adjustment under this Agreement will be determined by Grantor's Director of Finance as of the applicable anniversary date of this Agreement, based upon the Consumer Price Index, All Urban Consumers, for the Los 970204 10572-00009 laj 0592880 0 — 13 — Angeles -Anaheim -Riverside Area ("CPI"), as published by the United States Department of Labor, Bureau of Labor Statistics, or its successor. The Director of Finance will compute the percentage difference between the CPI as it existed on the effective date of this Agreement and the CPI as it exists on the applicable anniversary date. The Director of Finance will then increase by such percentage the amount subject to periodic adjustment. The adjusted amount will be rounded off to the nearest dollar. If the Bureau of Labor Statistics revises that index or discontinues the preparation of that index, the Director of Finance must use the revised index or a comparable system as approved by the Council for determining fluctuations in the cost of living. 3. RIGHTS RESERVED TO THE GRANTOR. 3.1. Reservation. Grantor reserves every right it may have in relation to its power of eminent domain over Grantee's franchise and property. 3.2. Delegation of Powers. Any right or power in, or duty retained by or imposed upon Grantor, or any officer, employee, department, commission, or board of Grantor, may be delegated by Grantor to any officer, employee, department or board of Grantor, or to such other person or entity as Grantor may designate to act on its behalf. 3.3. Right of Inspection of Construction. The Grantor has the right to inspect all construction, installation, or other 970204 10572-00009 lsj 0592880 0 — 14 — work performed by Grantee in connection with the franchise, and to make such tests as may be necessary to ensure compliance with the terms of this Agreement, so long as that inspection and testing does not unreasonably interfere with Grantee's operations. 3.4. Right to Require Removal of Proyerty. Consistent with applicable law, at the expiration of the term or any renewal term or extension for which the franchise is granted, or upon its, lawful revocation, expiration, or termination, the Grantor has the right to require the Grantee to remove, within a reasonable period of time and at Grantee's expense, all portions of its system and any other property from all streets and public rights-of-way within the franchise service area. 3.5. Right of Intervention. Grantor has the right to intervene in any suit, proceeding, or other judicial or administrative proceeding in which the Grantor has any material interest, and to which the Grantee is made a party. 4. SYSTEM UPGRADE AND REBUILD AND SPECIAL SERVICES. 4.1. Upgrade and Rebuild. The upgrade and rebuild of the cable system that is to be undertaken and completed by the Grantee is more fully described in the attached Exhibit C. (a) Progress Reports. During the period of the upgrade and rebuild, Grantee will provide to Grantor quarterly progress reports describing the work performed, by area, during the previous months. (b) Penalties for Delay. Grantor, at its option, may apply one or more of the following penalties in a sequential 970204 10572-00009 lsj 0592880 0 — 15 — manner if Grantee fails to complete the upgrade and rebuild of its cable television system by the dates specified below: 1. With regard to the seven fiber backbone hub sites that are required to be installed no later than two years after the effective date of this Agreement, as specified in Exhibit C, Grantor may impose liquidated damages of up to One Thousand Dollars ($1,000) per day for each day following the date upon which all of said hub sites are required to be installed. 2. With regard to the 550 MHz or equivalent channel capacity rebuild of the cable system that is required to be completed no later than December 31, 2004, as specified in Exhibit C, Grantor may impose the following penalties: A. Grantor may impose liquidated damages of up to One Thousand Dollars ($1,000) per day for each day following the date upon which the rebuild of the cable system is required to be completed. B. For each month of delay exceeding three (3) months from the date upon which the rebuild of the cable system is required to•be completed, Grantor may reduce the term of the franchise for a period up to three (3) months. C. For a delay exceeding one year from the date upon which the rebuild of the cable system is required to be completed, Grantor may require total or partial forfeiture of the performance bond required by this Agreement. D. For a delay exceeding eighteen (18) months from the date upon which the rebuild of the cable system is required tobe completed, Grantor may terminate the franchise. 970204 10572-00009 lsj 0592880 0 - 16 - 4.2. Outlets for Public Buildings. Upon Grantor's written request, Grantee will install and maintain, without charge, one outlet to each public facility, including public school buildings, provided that the location is'within 500 feet of the Grantee's cable system and may be served by a normal aerial installation or by existing underground conduit. Grantee will provide, without charge, basic cable service to all new and existing outlets at public facilities, including public school buildings. Upon Grantor's written request, Grantee will also install cable and additional outlets at specified public facilities that are located more than 500 feet from Grantee's cable system, or that may require underground or other customized work; provided, however, that the costs to Grantor of such installations may not exceed the actual installation costs incurred by Grantee. Grantor will inform Grantee of the construction of new public facilities so that cable can be installed at the time of construction in order to minimize costs. 4.3. Emergency Alert Capability. Upon request of the Grantor, Grantee must make its facilities available for use by the Grantor during a disaster or public emergency. Grantee must provide the system with emergency audio override capability so as to enable law enforcement personnel and designated public officials to interrupt and cablecast emergency audio messages simultaneously on all channels. Equipment for these purposes will be installed, at Grantee's sole expense, in a location designated by the Grantor's principal representative. 970204 10572-00009 1Sj 0592880 0 - 17 4.4. No Offset Aaainst Franchise Fees. In accepting this franchise, Grantee acknowledges that the commitments specified in this Section 4 are voluntarily assumed, and their costs will not. be offset against any franchise fees payable by Grantee to Grantor during the term of the franchise. 4.5. Parental Control Devices. Grantee must provide to subscribers, upon request, a parental control device, "lockbox," digital code, or equivalent device that enables the subscriber to prevent the viewing of selected channels. 4.6. Technical Standards. The FCC Rules and Regulations, including Part 76, Subpart K (Technical Standards), and any amendments or supplements thereto, will apply to the Grantee's operations to the extent permitted by applicable law. 5. SERVICES PROGRAMMING AND CONSUMER PROTECTION STANDARDS. 5.1. Services and Programming. (a) Grantee must provide all subscribers, and the Grantor, with not less than thirty (30) days prior written notice of any proposed changes in rates and charges and any proposed reduction or augmentation of programming services, unless Grantor agrees in writing to waive this requirement or unless this requirement is prohibited by federal or state statutes or regulations. (b) Grantee has the right to establish different classifications of service for residential and commercial subscribers. Grantee's charges and rate schedules must be adopted and maintained in accordance with all applicable federal and state statutes and regulations. 970204 10572-00009 lsj 0592880 0 — 18 — 5.2. Discounts for Low Income Residents. During the term of this Agreement, Grantee must provide to Grantor current information concerning any discounts that Grantee may offer to low income residents within the franchise service area. 5.3. Leased Channel Service. Grantee must offer leased channels in accordance with applicable law. 5.4. Nondiscrimination. Grantee may not discriminate between or among subscribers within one type or class in the availability of services, at either standard or differential rates set forth in published rate schedules, except as otherwise authorized by law or by this Agreement. No charges may be made for services except as set forth in published schedules that are available for inspection at Grantee's office, quoted by Grantee on the telephone, or displayed or communicated to existing or prospective subscribers. However, upon Grantee's written request, Grantor may authorize Grantee to conduct demonstration service projects and service offerings of limited duration to specified areas of the City without making those projects or services generally available throughout the franchise service area. Grantee must demonstrate to Grantor that the selected areas are statistically valid and not based upon any invidious subscriber classifications and that the temporary authorization will be solely for offering services for demonstration or test marketing purposes. The Grantee must specify in its written request the proposed duration of the demonstration project and must the pay the franchise fee on all revenues received from its use of the cable system for that project. 970204 10572-00009 lsj 0592880 0 — 19 5.5. Billings. Grantee may not charge subscribers for services more than one month in advance unless an individual subscriber authorizes a longer period. All bills and billing statements must clearly indicate the billing period, the actual due date, and the amount of the penalty for late payment. 5.6. Subscriber "Bill of Rights". A subscriber "bill of rights," approved by Grantor as to form and content, must be provided by the Grantee to each new subscriber and not less than once each calendar year during the term of the franchise to each existing subscriber. This "bill of rights" may include the information required to be provided by Grantee to its subscribers as set forth in the provisions of Exhibit D ("Consumer Protection Standards"). 5.7. Consumer Protection Standards. Grantee must comply with the requirements and procedures set forth in Exhibit D relating to consumer protection standards, and with all applicable FCC standards and regulations relating to consumer protection. 5.8. Tapping and Monitoring. The Grantee may not tap or monitor, or permit any other person controlled by Grantee to tap or monitor, any cable, line, signal input device, or subscriber outlet or receiver, for any purpose whatsoever without the express written consent of the subscriber or a court order therefor; provided, however, that the Grantee may monitor customer service calls for quality control purposes and may conduct system -wide or individually -addressed "sweeps" for the purpose of verifying system integrity, controlling return path 970204 10572-00009 lsj 0592880 0 — 2 0 — transmission, monitoring service levels or billing -for -pay services, or checking for unauthorized connections to the cable television system. 5.9. Subscriber Privacy Rights. Grantee must comply with all federal, state, and local statutes and regulations relating to the privacy rights of subscribers, including the collection of data pertaining to individual subscribers. 5.10. Disclosure of Subscriber Lists. Grantee may not disclose, or sell, or permit the disclosure or sale, of its sub- scriber list without the prior written consent of each subscriber on that list; provided that Grantee may use its subscriber list as necessary for the marketing of Grantee's services, the maintenance of Grantee's facilities authorized by this Agreement, and the billing of subscribers for cable services; and provided further, that consistent with applicable law, Grantor may use Grantee's subscriber list for the purpose of communicating with subscribers in connection with matters relating to the operation, management, and maintenance of the cable system. 6. SUPPORT OF LOCAL CABLE USAGE. 6.1. Governmental Access Channel. Grantee will make available to Grantor, at no cost to Grantor, one channel for the exclusive use of the City, or its designee, for non-commercial governmental access purposes. Use of the governmental access channels will be under the exclusive control of the Grantor and subject to such rules and regulations as the Grantor may establish. 970204 10572-00009 1sj 0592880 0 2 1 6.2. Educational Access Channel. Grantee will make available to Grantor, at no cost to Grantor, one channel for the purpose of providing local programming of educational value to the community. 6.3. Local Origination Programming. At its option, Grantee has the right to use one channel for local origination programming. 6.4. Coverage of Special Events. Grantee will provide to Grantor technical assistance and all equipment required in order to cover between 20 and 25 special community events each year, as may be requested by the Grantor, subject to reasonable advance notice and the availability of Grantee's staff. 6.5. Financial Support for Governmental Access Channel. (a) In lieu of Grantee's performance of the obligations specified above in Section 6.4, Grantor may require that Grantee make certain financial contributions for the purchase of equipment for the governmental access channel. Specifically, upon Grantor's request, Grantee will pay to Grantor the sum of Fifty Thousand Dollars ($50,000) for use by the Grantor in purchasing governmental access channel equipment. This sum will be paid by Grantee to Grantor within thirty (30) days after receipt of a budget from the Grantor that describes the proposed expenditures for equipment for the non-commercial use of the governmental access channel. If Grantor exercises its rights under this Section 6.5 at any time after the first anniversary of this Agreement, the contribution specified herein 970204 10572-00009 lsj 0592880 0 — 22 — will be reduced by 10% for each anniversary date that has elapsed after the effective date of this Agreement. (b) If Grantor invokes its rights under this Section 6.5, Grantee will also pay to Grantor an annual payment in the sum of Five Thousand Dollars ($5,000) for the year in which the election is made and for each succeeding year of this franchise, including each extended year of this franchise as provided for in Section 1.8 above. Such annual payment will be made by Grantee to Grantor within thirty (30) days after receipt of a budget from the Grantor that describes the need for funding for equipment for the governmental access channel. Grantee is not obligated to make any $5,000 annual payment during any year in which Grantor has not exercised its rights under this Section 6.5. (c) Notwithstanding the provisions of subparagraphs (a) and (b) above, Grantor and Grantee agree that if new technology requires additional and unforeseen expenditures in order to use effectively the governmental access channel, then the parties will meet and confer and negotiate in good faith additional subsidies to be paid by Grantee for the support of the governmental access channel. (d) If the Grantor elects to require Grantee to provide the financial support for the governmental access channel as specified in this Section 6.5, then the Grantor will be deemed to have waived any rights to require Grantee to provide the services specified in Section 6.4. 6.6. Compliance with Federal Law. In accepting this franchise, Grantee acknowledges that the commitments specified in 970204 10572-00009 lsj 0592880 0 - 23 - this Section 6 are voluntarily assumed, and their costs will not be offset against any franchise fees payable by Grantee to the Grantor during the term of the franchise. 6.7. Grantor's Covenant Not to Compete. Grantor covenants and agrees with Grantee that it will not use its designated governmental access channel or education access channels to provide commercial or revenue -generating services that may, directly or indirectly, compete with services provided by Grantee. 7. DESIGN AND CONSTRUCTION. 7.1. System Construction. The system must be constructed, rebuilt, and upgraded in accordance with the provisions of this Agreement; provided, however, that Grantee is obligated to construct and operate its cable system only where there are at least forty (40) residential dwelling units per linear mile. 7.2. Construction Components and Techniques. Construction components and techniques must comply with the terms of this Agreement and all applicable law. 7.3. Technical and Performance Standards. Grantee must construct, reconstruct, install, operate, and maintain its system in a manner consistent with all applicable federal, state, and local laws and ordinances, construction standards, construction specifications, FCC technical standards, and any additional standards set forth in this Agreement. 7.4. Construction Codes. The Grantee must strictly adhere to all building and zoning codes now or hereafter in force and must obtain all necessary permits. The Grantee must arrange its 970204 10572-00009 lsj 0592880 0 - 24 - lines, cables, and other appurtenances, on both public and private property, in such a manner as to cause no unreasonable interference with the use of that property by any person. In the event of such interference, the Grantor may require the removal of the Grantee's lines, cables, and appurtenances from the property in question. Except in emergency situations, Grantee must give at least forty-eight (48) hours advance notice to all affected property owners, and to the Grantor, prior to installing any above -ground or underground structures upon Grantor's easements located on private property. Grantee must be a member of Underground Service Alert. Grantor will not modify its construction requirements subsequent to the completion of construction so as to require reconstruction or retrofit unless the public health and safety so requires. 7.5. Construction Default. Upon the failure, refusal or neglect of Grantee to undertake or complete any construction, reconstruction, repair, or other necessary work as required by this Agreement, thereby creating an adverse impact upon the public health, welfare or safety, Grantor may (but is not required to) cause that work to be completed, in whole or in part, and upon so doing will submit to Grantee an itemized statement of costs. Grantee will be given reasonable advance notice of Grantor's intent to exercise this power, and thirty, (30) days to cure the default. Grantee must, within thirty (30) days of billing, pay to Grantor the actual costs incurred. 7.6. Vacation or Abandonment. If any street, alley, public highway, or portion thereof used by the Grantee is vacated by the 970204 10572-00009 lsj 0592880 0 — 2 5 — Grantor, or its use is discontinued by the Grantee, then upon reasonable notice the Grantee must forthwith remove its facilities therefrom unless otherwise specifically authorized. Following that removal, Grantee must restore, repair, or reconstruct the area where that removal has occurred to such condition as may be required by the Grantor, but not in excess of the original condition. Upon any failure, neglect, or refusal of the Grantee, after thirty (30) days' notice by the Grantor, to do such work, Grantor may cause it to be done, and within thirty (30) days of billing, Grantee must pay to Grantor the actual costs incurred. 7.7. Abandonment in Place. Grantor may, upon written application by Grantee, approve the abandonment in place by Grantee of any property, under such terms and conditions as Grantor may approve. Upon Grantor -approved abandonment in place of any property, Grantee must cause to be executed, acknowledged, and delivered to Grantor such instruments as Grantor may prescribe and approve, transferring and conveying ownership of that property to Grantor. 7.8. Removal of System Facilities. If Grantee's plant is deactivated for a continuous period of thirty (30) days (except for reasons beyond Grantee's control), and without prior written notice to and approval by Grantor, then Grantee must, at Grantor's option and demand, and at the sole expense of Grantee, promptly remove from any streets or other public areas all property of Grantee. Grantee must promptly restore the streets 970204 10572-00009 13j 0592880 0 - 26 - or other public areas from which its property has been removed to the condition existing prior to Grantee's use thereof. 7.9. Movement of Facilities. If Grantor determines it is necessary to temporarily move or remove any of the Grantee's property for a public purpose, Grantee, upon reasonable notice, must move, at the expense of Grantee, its property in order to facilitate that public purpose. No such movement will be deemed a taking of Grantee's property. Nothing herein limits the right of Grantee to seek reimbursement from any party other than Grantor. 7.10. Undergrounding of Cable. Cables must be installed underground at Grantee's cost where all existing utilities are already underground. Previously installed aerial cable will be installed underground at Grantee's pro rata cost in concert with other utilities as those other utilities convert from aerial to underground construction. 7.11. Facility Agreements. This Agreement does not relieve Grantee of any obligations to obtain pole or conduit space from any department of Grantor, from any utility company, or from others maintaining utilities in Grantor's streets. 7.12. Repair of Streets and Public Ways. All streets and public ways, and improvements located within those streets and public ways, that are disturbed or damaged by the Grantee or its contractors during the construction, reconstruction, operation, or maintenance of the System, must be restored at Grantee's expense, and within the time frame and limits specified by Grantor. 970204 10572-00009 lsj 0592880 0 — 27 7.13. Erection of Poles Prohibited. Grantee may not erect any pole on or along any street or public way where there is an existing aerial utility system. If additional poles in an existing aerial route are required, Grantee must negotiate with the appropriate public utility for their installation. Any such installation requires the advance written approval of the Grantor. Subject to applicable federal and state law, the Grantee must negotiate the lease of pole space and facilities from the existing pole owners for all aerial construction, under mutually acceptable terms and conditions. 7.14. Reservation of Street Rights. Nothing in this Agreement precludes the Grantor from constructing, repairing, or altering any public work or improvement. To the extent practicable, Grantor will notify Grantee of any such work that may affect Grantee's franchise property. Grantor's work will be done, insofar as practicable, in such manner as not to unnecessarily obstruct, injure or prevent the free use and operation of any property of Grantee. However, if any property of Grantee interferes with the construction, maintenance, or repair of any public improvement, that property must be removed or replaced in such manner as may be directed by Grantor so as not to interfere with the public work or improvement, and that removal or replacement will be at the expense of the Grantee. 8. PERFORMANCE AUDITS AND TECHNICAL DATA. 8.1. Biennial Audit of Performance. (a) Grantor may require, at its option, that performance audits of the cable television syst.em be conducted 970204 10572-00009 lsj 0592880 0 — 2 8 every two years by an independent technical consultant selected and employed by Grantor to verify that the system complies with all technical standards and other specifications of this Agreement. (b) Upon completion of a performance audit, the Grantor and Grantee will meet to review the performance of the cable television system. The reports required by this Agreement regarding subscriber complaints, the records of performance audits and tests, and any opinion survey reports that may be conducted by Grantor or Grantee will be used as the basis for review. In addition, any subscriber may submit complaints prior to or during the review meetings, either orally or in writing, and these will also be considered. (c) Within thirty (30) days after the conclusion of the system performance review meetings, Grantor will issue findings with respect to the adequacy of system performance and the quality of service. If inadequacies are identified, Grantor may direct Grantee to correct the inadequacies within such period of time that Grantor determines to be reasonable. (d) Participation by the Grantor and the Grantee in this process does not waive any rights they may have under applicable federal or state law. (e) In addition to the biennial performance audits described above, Grantor may conduct annual performance audits of the same or lesser magnitude, at its sole expense, when and if determined necessary or appropriate by Grantor. 970204 10572-00009 lsj 0592880 0 — 2 9 — 8.2. System Technical Data. (a) Grantee must maintain in its local office a complete and up-to-date set of as -built system maps and drawings upon completion of construction or reconstruction; equipment specification and maintenance publications; and signal level diagrams for each active piece of electronic equipment in the system. As -built drawings must show all lines and installed equipment. (b) Technical data maintained by Grantor at its local office must also include approved pole attachment agreements, details of satellite and microwave equipment, mobile radio units, heavy construction vehicles and equipment, and video and audio equipment normally used in the operation of the system. Grantor may review this information at Grantee's local office upon reasonable advance notice. (c) All technical data required to be maintained by Grantee at its local office must be available for Grantor's inspection during normal business hours and upon reasonable notice. Upon any system failure or other operating emergency, the technical data will be made available at any time, so long as the provision of that data does not unreasonably interfere with Grantee's operations. (d) To the extent authorized by law, Grantor will maintain the confidentiality of the information provided by Grantee under this Section 8.2. 8.3. Emergency Repair Capability. It is Grantee's responsibility to assure that its personnel are qualified to make 970204 10572-00009 lsj 0592880 0 — 30 — repairs, that they are available at all reasonable times, and that they are supplied with keys, equipment location instructions, and technical information necessary to begin repairs upon notification of the need to maintain or restore continuous service to the system. 9. REVOCATION AND FORFEITURE. 9.1. Revocation. Consistent with applicable law, and in addition to any rights set out elsewhere in this Agreement, Grantor reserves the right to revoke the franchise, subject to the procedural guidelines set forth in Section 11 of this Agreement if the Grantee, whether willfully or negligently, repeatedly violates any material provision of this Agreement. 9.2. Forfeiture. Upon Grantee's failure to comply with any material term of this Agreement, the Grantor may, subject to the procedural guidelines set forth in Section 11 of this Agreement, declare a forfeiture. The Grantee may be required to remove its structures and property from the Grantor's streets and to restore those streets to their prior condition within a reasonable specified period of time. Upon Grantee's failure to do so, the Grantor may perform the work and collect all costs, including direct and indirect costs, from the Grantee. At Grantor's discretion, the cost thereof may be placed as a lien upon all plant, property, or other assets of the Grantee. 10. RECORDS: REPORTS: RIGHT TO INSPECT AND AUDIT: EXPERTS. 10.1. Grantee to Provide Records. All reports and records required under this Section 10 must be furnished at the sole expense of Grantee. 970204 10572-00009 lsj 0592880 0 - 3 1 - 10.2. Records. Grantee must maintain at its local offices, and make available for inspection during normal business hours, a separate and complete set of business records for the franchise authorized by this Agreement. The Grantee must provide that information in such form as may be required by the Grantor, so long as that information is reasonably related to the scope of Grantor's rights under this Agreement, or Grantor's regulatory functions. 10.3. Maintenance and Inspection of Records. Grantee must maintain accurate books and records, in conformity with generally accepted accounting principles, showing all receipts, expenses, loans, payments, investments of capital, and other transactions relating to the cable television franchise. Grantor, upon reasonable notice, and acting by and through its duly -appointed auditors, has the right to inspect those records and to receive copies to the extent that information is reasonably related to the scope of the Grantor's rights under this Agreement, or Grantor's regulatory functions. If requested by Grantee, Grantor's auditors will promptly return copies of business records provided by Grantee in accordance with this Section 10.3. 10.4. Reports of Financial and Operating Activity. (a) Not later than ninety (90) days after the close each calendar year during the term of this Agreement, Grantee must submit to the Grantor the following reports: 1. A financial report, certified by a designated financial officer of Grantee, for all cable system activity within the franchise service area during the previous fiscal year. The report must set out separately all the annual gross receipts from all sources within the franchise service 970204 10572-00009 lsj 0592880 0 — 32 — area, the annual gross subscriber revenues derived from each tier of service in the franchise service area, the basis for the computation of franchise fees, and such other relevant facts as may reasonably be required by Grantor to verify the accuracy of the annual franchise fee payment. 2. A summary of Grantee's activities during the previous year, including, but not limited to, subscriber totals and new services. 3. A current list of Grantee's officers, directors, and other principals if there has been any change during the previous year. 4. A summary of Grantee's written record of all complaints received from subscribers and the remedial actions taken. 10.5. Performance Tests and Compliance Reports. Upon Grantor's request, and not later than April 15 of each year, Grantee must provide a written report of any FCC or other performance tests required or conducted. In addition, Grantee must provide reports of any tests and compliance procedures required by this Agreement not later than thirty (30) days after the completion of those tests and compliance procedures. 10.6. Additional Reports. The Grantee must prepare and submit to the Grantor in writing, at the times and in the form reasonably prescribed by Grantor, such additional reports as may reasonably be required with respect to Grantee's compliance with the provisions of this Agreement. 970204 10572-00009 1sj 0592880 0 - 33 - 10.7. Communications with Regulatory Agencies. Copies of all non -routine and material communications between the Grantee and the Federal Communications Commission, or any other agency having jurisdiction in respect to any matters affecting cable communications operations authorized by this Agreement must be submitted promptly to the Grantor following their receipt or mailing by Grantee. 10.8. Inspection of Facilities. Upon reasonable notice, and during normal business hours, Grantee must permit inspection, by any duly authorized representative of Grantor, of all franchise property and facilities of Grantee situated within the franchise service area. 10.9. Right to Audit. (a) In addition to all other inspection rights under this Agreement, upon ten (10) days prior written notice, Grantor has the right to inspect, examine, and audit, during normal business hours, all documents pertaining to the Grantee that are reasonably related to the Grantor's enforcement of its rights under this Agreement; provided, however, that the Grantor may not exercise this right more frequently than once in any twelve (12) month period. Those documents will be made available at the Grantee's local office. All documents pertaining to financial matters that may be the subject of an audit by the Grantor, as set forth herein, must be retained by the Grantee for a minimum of three (3) years following the termination of this Agreement. Access by the Grantor to any documents covered by this subsection 970204 10572-00009 Lsj 0592880 0 - 34 - may not be denied by the Grantee on grounds that those documents are alleged to contain proprietary information. (b) Any audit conducted by Grantor under this subsection will be conducted at the sole expense of Grantor, and Grantor will prepare a written report containing its findings, a copy of which will be mailed to the Grantee; provided, however, that Grantee must reimburse Grantor for the expense of any such audit if, as the result of that audit, it is determined that there is a shortfall of more than three percent (3s) in the amount of franchise fees or other payments that have been made or will be made by Grantee to Grantor pursuant to the terms of this Agreement. 10.10. Retention of Experts. (a) In the exercise of its rights under this Agreement, Grantor has the further right to retain technical. experts and other consultants on a periodic basis, but not more frequently than once every three years, for the purpose of monitoring, testing, and inspecting any construction, operation, or maintenance of the system, and all parts thereof, or to ensure compliance with and enforcement of the provisions of this Agreement. The Grantor and the Grantee will share the cost of retaining those experts; provided, however, the Grantee's share of these costs for any one periodic review or evaluation will not exceed the sum of $5,000. (b) Notwithstanding the provisions of paragraph (a) above, the Grantor may retain technical experts and other consultants whenever the Grantee has initiated proceedings that 970204 10572-00009 lsj 0592880 0 - 35 - would normally require the Grantor to retain experts and consultants, such as the filing of a request for approval of a transfer or a change in control, expansion of the franchise service area, or the modification or amendment of this Agreement. The Grantor and the Grantee will share the cost of retaining those experts; provided, however, that the Grantee's share of these costs for any single proceeding will not exceed the sum of $5,000. 11. ENFORCEMENT PROCEDURES. 11.1. Notice and Hearing upon Grantee's Default. (a) Unless otherwise provided in this Agreement, prior to formal consideration by Grantor of any termination, revocation, or forfeiture of Grantee's franchise, or the imposition of any other penalty or administrative remedy available to Grantor, including liquidated damages, attributable to Grantee's failure, whether willful, negligent, or otherwise, to adhere to the material terms and conditions of this Agreement, Grantor must make written demand on Grantee to correct the alleged default. Grantor and Grantee will expeditiously meet to discuss the alleged default, at which time Grantee must indicate, in writing, the period of time required to resolve the problem. Giving due consideration to Grantee's request, Grantor will, in writing, state the period of time Grantor will allow Grantee to resolve the problem. During this time period, but in no event less than ten (10) days before the final date for correction, Grantee may request additional time to correct the problem, and Grantor may grant that request if Grantor determines, in its 970204 10572-00009 18j 0592880 0 - 36 - discretion, that such additional time is necessary due to delays beyond Grantee's control. If the default continues for a period of ten (10) days following the deadline for correction, plus any extension of time, a hearing will be scheduled by Grantor with regard to franchise termination, revocation, forfeiture, or the imposition of any other penalty or administrative remedy. (b) The City Manager will provide written notice of the hearing to Grantee, including the grounds for the proposed action, not less than thirty (30) days before the hearing. In addition, the City Manager, as part of that written notification, will describe the procedures to be followed by the Grantor to determine whether cause exists for termination, revocation, forfeiture, or the imposition of other penalties. At a minimum, those procedures will afford the Grantee adequate notice and a fair opportunity for full participation, including the right to introduce evidence, to require the production of evidence, to question witnesses, and to obtain a transcript of the proceeding at Grantee's expense. within ten (10) days after receipt of that notice, Grantee must file any written objections to those procedures. The City Manager will notify Grantee of any modification to the procedures and provide another ten (10) day objection period. Any objections not raised within these ten (10) day periods will be deemed waived. At the hearing, Grantor will hear Grantee, and any other person interested in the matter, and will determine, at that or continued hearings, an appropriate course of action for enforcement of the franchise. 970204 10572-00009 lsj 0592880 0 — 37 — 11.2. Delegation. The proposed imposition of remedies, such as liquidated damages, that do not include termination of the franchise may, at Grantor's option, be determined by an officer, employee, or agency of the Grantor to which it may delegate such administrative decisions, subject to due process and the criteria contained in this section, and subject to appeal to the City Council. 12. CONTINUITY OF CABLE TELEVISION SYSTEM SERVICES. 12.1. Continuity of Service. The parties acknowledge that it is the right of all subscribers to receive all services authorized by this Agreement so long as their financial and other obligations to the Grantee are honored. During Grantee's rebuild and upgrade of the system, and upon any future sale of the system, Grantee must use due diligence and reasonable care to ensure that all subscribers receive continuous, uninterrupted service. In the event of purchase by Grantor, or a change of franchisee, Grantee will cooperate with Grantor or the new franchisee to operate the system for a temporary period in order to maintain continuity of service to all subscribers. If Grantee, through its own fault, discontinues system -wide service for seventy-two (72) continuous hours, and Grantee is in material default of this Agreement, or if the franchise is revoked by Grantor, then Grantor may, by resolution, when reasonable cause is deemed to exist, assume operation of the system for the purpose of maintaining continuity of service. Grantor's operation of the system may continue until the circumstances which, in the judgment of the Grantor, threaten the continuity of 970204 10572-00009 lsj 0592880 0 — 3 8 — service are resolved to Grantor's satisfaction. Grantor is entitled to receive all revenues for any period during which it operates the system. 12.2. operation and Management By Grantor. (a) During any period when the system is being operated by Grantor pursuant to subsection 12.1 above, Grantor will attempt to minimize the disruption of operations in a manner consistent with the maintenance of continuing service to subscribers. Notwithstanding the foregoing, Grantor may, as it deems necessary, make any changes in any aspect of operations that, in Grantor's sole judgment, are required for the preservation of quality of service and its continuity. During that period, Grantor will also maintain to the best of its ability the system's records, physical plant, financial integrity, funds, and other elements normally involved in operations. (b) Grantor may, upon assuming operation of the system, appoint a manager to act for it in conducting the system's affairs. That manager will have such authority as may be delegated by Grantor and will be solely responsible to Grantor for management of the system. Grantee must reimburse Grantor for all reasonable costs, in excess of system revenues retained by Grantor, that are incurred during Grantor's operation if the franchise remains in effect during the period of Grantor's operation. 970204 10572-00009 lsj 0592880 0 - 39 - 13. MISCELLANEOUS PROVISIONS 13.1. Assignment Transfer. Sale and Change of Control. (a) Consummation of the following transactions related to this franchise, or involving the Grantee of this franchise, requires the prior written consent of the Grantor's city council expressed by resolution, which consent will not be unreasonably withheld, and then only under such conditions as may be prescribed: (1) The sale, transfer, lease, assignment, or other disposition of the franchise, in whole or in part, whether voluntary or involuntary; provided, however, that such consent will not be required for a transfer in trust, mortgage, or other hypothecation for the purpose of securing an indebtedness of the Grantee. A transfer, assignment, or other disposition of the franchise may be made only by an instrument in writing, a duly executed copy of which must be filed in the office of the City Clerk within thirty days after the City Council's adoption of the resolution consenting to that transfer, assignment, or other disposition. (2) Any merger, consolidation, reorganization, business combination, or other transaction wherein or whereby twenty-five percent or more of the ownership interests in the Grantee will be affected and control of the Grantee will change or be subject to change. As used herein, "control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the Grantee. A duly executed copy of any written instrument evidencing the 970204 10572-00009 lsj 0592880 0 - 40 - closing and consummation of any such transaction must be filed in the office of the City Clerk within thirty days after the City Council's adoption of the resolution consenting to that transaction. (b) In determining whether it will consent to any transfer, assignment, or other disposition of the franchise, or to any transaction affecting the control of the Grantee, the Grantor may evaluate the financial, technical, legal and other qualifications of the proposed transferee or controlling person. Grantee must ensure that the proposed transferee or controlling person submits an application, in the form required by Chapter 13.12 of the Code and by any applicable federal law, not less than one hundred twenty (120) days prior to the closing date of the proposed transaction. After considering the financial, technical, legal and other qualifications of the proposed transferee or controlling person, the City Council may, by ordinance or resolution, authorize the proposed transaction, subject to such conditions as may be in the public interest. Grantor's consent to any such transaction may not be unreasonably denied or delayed. (c) Grantee and its proposed transferee or controlling person are jointly and severally responsible for reimbursement to the Grantor of all costs and expenses reasonably incurred in processing and evaluating the application related to the proposed transaction. These costs and expenses include, without limitation, costs of administrative reviews; financial, legal and technical evaluation of the proposed transferee; costs 970204 10572-00009 lsj 0592880 0 — 4 1 — for technical experts and consultants in an amount not exceed $5,000; notice and publication costs; and document preparation expenses. Grantor will send Grantee an itemized statement of those costs and expenses reasonably incurred, and Grantee will pay that amount within twenty (20) days after receipt of that statement. 13.2. Force Majeure. If Grantee's performance of any of the terms, conditions, obligations, or requirements of this Agreement is prevented or impaired by any cause or event beyond its reasonable control and not reasonably foreseeable, such inability to perform will be deemed to be excused, and no penalties or sanctions will be imposed. Those causes beyond Grantee's reasonable control and not reasonably foreseeable include, but are not limited to, acts of God, civil emergencies, labor unrest, strikes, inability to obtain access to an individual's property, and inability of the Grantee to secure all necessary authorizations or permits to use necessary poles or conduits so long as Grantee exercises due diligence to timely obtain those authorizations or permits. 13.3. Possessory Interest. By accepting the franchise, Grantee acknowledges notice was given to Grantee, as required by California Revenue and Taxation Code Section 107.6, that use or occupancy of any public property pursuant to the authorization set forth in this Agreement may create a possessory interest that may be subject to the payment of property taxes levied upon that interest. Grantee is solely liable for, and must pay and discharge prior to delinquency, all possessory interest taxes or 970204 10572-00009 lsj 0592880 0 — 42 — other taxes levied against Grantee's right to possession, occupancy, or use of any public property in accordance with any right of possession, occupancy, or use created by this Agreement. Grantee is not barred from challenging any tax on any amounts so assessed. 13.4. Indemnification. (a) Grantee will indemnify, defend, and hold harmless the Grantor, its officers, agents and employees, from and against any liability, claims, damages, costs, or expenses, including reasonable attorney's fees, arising out of or attributable to the exercise or enjoyment of the franchise renewed pursuant to this Agreement. Grantee, at its sole cost and expense, and upon demand of Grantor, will appear in and defend any and all suits, actions, or other legal proceedings, whether judicial, quasi-judicial, administrative, legislative or otherwise, instituted by third persons or duly constituted authorities, against or affecting Grantor, its officers, agents, or employees, and arising out of or pertaining to the exercise of rights arising under the franchise within the franchise service area, and injury to persons or damages to property proximately caused by any conduct undertaken by the Grantee, its agents, employees, or subcontractors, by reason of the franchise. (b) Grantor will indemnify, defend, and hold harmless the Grantee, its officers, agents, and employees, from and against all claims, suits, actions, liability, and judgments for damages arising out of or attributable to Grantor's use of the Grantee's cable communications system for the purpose of 970204 10572-00009 19j 0592880 0 - 43 - providing emergency alerts, as specified in Section 4.3, and for the purpose of providing programming on the governmental and education access channels referenced in Sections 6.1 and 6.2. 13.5. Conflict of Interest. As of the effective date of this Agreement, the parties agree that, to their knowledge, no member of the City Council, nor any other officer or employee of Grantor, has any direct interest, whether contractual, non -contractual, financial or otherwise in this franchise, or in other business of the Grantee, and that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of that information will be made in writing to the other party, even if that interest would not be considered a conflict of interest under applicable laws. Grantee covenants that it has, at the time of execution of this Agreement, no direct interest in any business venture or other investment that would conflict in any manner with the performance of its obligations under this Agreement. 13.6. Resolution of Disputes. (a) Disputes regarding the interpretation or appli- cation of any provisions of this Agreement will, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. (b) If any action at law or in equity is brought to enforce or interpret any provisions of this Agreement, the pre- vailing party in that action is entitled to reasonable attorneys' 970204 10572-00009 lsj 0592880 0 - 44 - fees, costs and necessary disbursements, in addition to any other relief that may be sought and awarded. 13.7. Amendments. This Agreement supersedes all prior proposals, agree- ments and understandings between the parties and may not be modified or terminated orally, and no modification, termination or attempted waiver of any of its provisions will be binding unless in writing and signed by the party against whom the same is sought to be enforced. 13.8. Binding Upon Successors. This Agreement is binding upon and inures to the benefit of each of the parties and to their respective transferees, successors and assigns. 13.9. Counterpart Execution. This Agreement may be executed in multiple counter- parts, each of which is deemed to be an original and all of which constitute one and the same instrument. 13.10. Applicable Law. This Agreement and the transactions herein contem- plated are to be construed in accordance with and governed by the applicable laws of the State of California and of the United States. 14. DEFINITIONS. a. Defined Terms. For the purposes of this Agreement, the following words, terms, phrases, and their derivations have the meanings set forth below. When not inconsistent with the context, words used in the present tense 970204 10572-00009 lsj 0592880 0 - 4 5 - include the future tense, and words in the singular number include the plural number. "Basic Service" or "Basic Cable Service" or "Basic Service Tier" means the lowest service tier which includes the retransmission of local television broadcast signals. 111984 Cable Act" means the Cable Communications Policy Act of 1984. 111992 Cable Act" means the Cable Television Consumer Protection and Competition Act of 1992. "Cable Act" means the 1984 Cable Act as amended by the 1992 Cable Act and by the Telecommunications Act of 1996. "Cable Operator" means any person or group of persons (i) who provides cable service over a cable system; or (ii) who controls or is responsible for, through any arrangement, the management and operation of a cable system. "Cable Service" means (i) the one-way transmission to subscribers of video programming or other programming service; and (ii) subscriber interaction, if in conjunction with subparagraph (i), which is required for the selection of or use of that video programming. "Cable System" or "Cable Television System" or "System" means a facility, consisting of a set of closed transmission paths and associated signal generation reception and control equipment that is designed to provide cable service, including video programming, and which is provided to multiple subscribers within the community. 970204 10572-00009 lsj 0592880 0 - 46 - "Complaint" means a dispute in which a subscriber notifies Grantee of an outage or degradation in picture quality that is not corrected following the initial telephone or service call. "Control" or "Controlling Interest" means actual working control in whatever manner exercised, including, without limitation, working control through ownership, management, or debt instruments, as the case may be, of the cable system or the Grantee. "Drop" means the cable and related equipment connecting the Cable System's plant to equipment at the Subscriber's premises. "Education Channel" means any channel where non-profit educational institutions are the primary designated programmers. "FCC" means the Federal Communications Commission or its designated representatives. "Franchise" means a written undertaking or action of the Grantor that authorizes a specific person to use the Grantor's streets and public ways for the purpose of installing, operating and maintaining a Cable Television System to provide Cable Service. "Government Channel" means any channel where a local government agency is the primary designated programmer, and the programming is informational programming regarding government activities and services. 970204 10572-00009 lsj 0592880 0 — 4 7 — "Grantee" means the person to which a Franchise is granted for the construction, reconstruction, operation, and maintenance of a Cable System and the lawful successors, transferees, or assignees of that person. "Grantor" means the City of Diamond Bar, acting by and through its elected governing body, or such representative as the governing body may designate to act on cable matters in its behalf. "Gross Annual Revenue" or "Gross Annual Receipts" or "Gross Receipts" means all revenue, as determined in accordance with generally accepted accounting principles, which is received, directly or indirectly, by Grantee from or in connection with the distribution of any Cable Service, and any other service dependent upon the use of public rights-of-way that may, under existing or future federal law, be included in the Cable Act definition for the purpose of calculating and collecting the maximum allowable franchise fee for operation of the system, whether or not authorized by any franchise, including, without limitation, leased channel revenues received, directly or indirectly, from or in connection with the distribution of any Cable Service. It is intended that all revenue collected by the Grantee from the provision of Cable Service over the system, whether or not authorized by the franchise, be included in this definition. Gross Annual Revenue also specifically includes: (i) the fair market value of any nonmonetary (i.e., barter) transactions between Grantee and any person but not less than the customary prices paid in connection with equivalent transactions; 970204 10572-00009 lsj 0592880 0 — 48 and (ii) any revenue received, as reasonably determined from time to time by the Grantor, through any means which is intended to have the effect of avoiding the payment of compensation that would otherwise be paid to the Grantor for the franchise granted. Gross Annual Revenue also includes any bad debts recovered, and all advertising revenue that is received directly or indirectly by Grantee, or any other person from or in connection with the distribution of any service over the System or the conduct of any service -related activity involving the System. Gross Annual Revenue does not include: (i) the revenue of any person to the extent that such revenue is also included in the Gross Annual Revenue of Grantee; (ii) taxes imposed by law on Subscribers that Grantee is obligated to collect; (iii) amounts that must be excluded pursuant to applicable law; and (iv) programming or advertising revenues of any affiliate of the Grantee whose programming or advertising is carried on the cable system, where such revenues are paid to that affiliate by the Grantee and recovered by the Grantee through charges to subscribers that are included in the Grantee's Gross Annual Revenue. "Headend" means that central portion of the system where signals are introduced into and received from the balance of the system. "Lease Channel" means any channel where someone other than Grantor or Grantee is sold the rights to air programming. "Local Origination Channel" means any channel where the Grantee is the primary designated programmer. 970204 10572-00009 lsj 0592880 0 - 49 - "Monitoring" or "Tapping" means observing or receiving a signal, where the observer is neither the sending nor receiving party and is not authorized by the sending or receiving party to observe that signal, whether the signal is observed or received by visual, electronic, or any other means. "Pay Cable," "Pay Service," "Premium -Service" or "Pay Television" means signals for which there is a fee or charge to users over and above the charge for Basic Service, including any tiers of service; provided, however, the sale or lease of studio facilities, equipment, or tapes to local users are not deemed to be pay or premium services. "Person" means any individual, corporation, partnership, proprietorship, or organization authorized to do business in the State of California. "Plant" means the transmitting medium and related equipment that transmits signals between the Headend and Subscribers, including Drops. "Pole Attachment Agreement" or "Attachment Agreement" means any agreement with the Grantor, with any other governmental entity, or with any public utility relating to the Grantee's use Of utility poles, ducts, or conduits. "Program" or "Programming" means the information content of a signal and the act or process of creating such content, whether that content is intended to be pictures and sound, sound only, or any other form of information. "Programmer" means any person who provides program material or information for transmission by means of the System. 970204 10572-00009 lsj 0592880 0 — 50 — "Property of Grantee" means all property owned or leased by Grantee within the franchise service area in the conduct of its Cable System business under a Franchise. "Residential Dwelling Unit" or "Dwelling Unit" means a home, mobile home, condominium, apartment, cooperative unit, and any other individual dwelling unit_ "Service" means any kind of service or type of benefit provided by Grantee, or any group of related benefits made available to any person, that involves the use of a signal transmitted via a Cable Television System within the public right-of-way, whether the signal and its content constitute the entire service or comprise only a part of a service that involves other elements of any number or kind. "Service Area" or "Franchise Service Area" means the entirety of the City of Diamond Bar. "Service Interruption" means the loss of picture or sound on one or more cable channels. "Service Tier" or "Tier" means a category of Cable Service or other services provided by a Cable Operator and for which a separate rate is charged by the Cable Operator, other than per channel or per event programming or packages of per channel or per event programming. "Streets" means the surface of, and the space above and below, any public street, sidewalk, alley, or other public way or right-of-way of any type. 970204 10572-00009 lsj 0592880 0 — 5 1 — "Subscriber" means any person electing to subscribe to, for any purpose, a service provided by Grantee by means of or in connection with its Cable System. b. Terms Not Defined. Words, terms, or phrases not defined above in paragraph (a) shall first have the meaning as defined in Chapter 13.12 of the Code, and next in the Cable Act, and next the special meanings attributable to their use in any industry, business, trade, or profession where they commonly carry special meanings. If those special meanings are not common, they will be defined as set forth in commonly used and accepted dictionaries of the English language. 15. COMPETITIVE CABLE -TELEVISION FRANCHISES. (a) Grantee acknowledges that Grantor has reserved the right to award additional franchises for cable -television systems within the City. (b) If, during the term of this Agreement, a cable - television franchise is awarded by Grantor to another person, which franchise authorizes the use of public rights-of-way to construct, operate, or maintain a cable or similar system for the delivery of video programming, then Grantor agrees with Grantee that such franchise will be subject to the following terms and conditions: 1. The term of that franchise, including any authorized extension, will not exceed the term of the franchise as provided for in Section 1.8 of this Agreement. 970204 10572-00009 lsj 0592880 0 — 52 — 2. The annual franchise fee imposed upon the grantee will not be less than the franchise fee imposed by Section 2.2 of this Agreement.. 3. The grantee will be obligated to provide governmental and educational access channels that are equivalent in number to those provided for in Section 6.1 and 6.2 of this Agreement. 4. The payments and other benefits to be received by Grantor from the Grantee, excluding the annual franchise fee that is referenced above in subsection (2), will be comparable to the payments and other benefits that are received by Grantor under the provisions of this Agreement. 16. AUTHORITY AND EFFECTIVE DATE. 16.1. Authority. The parties signing below represent and warrant that they have the requisite authority to bind the entities on whose behalf they are signing. 16.2. Effective Date. This Agreement will become effective as of the date specified in Subsection 1.7. It is the intention of the parties that the Grantee will first execute this Agreement and thereafter submit it to the Grantor. The City Clerk will insert the effective date in all counterparts of this Agreement, attest to their execution by a duly authorized officer of the Grantor, and transmit one or more fully executed counterparts to the Grantee. TO EFFECTUATE THIS AGREEMENT, each of the parties has caused this Agreement to be executed by its duly authorized 970204 10572-00009 lsj 0592880 0 - 53 - representative as of the date set forth below the authorized signature. APPROVED AS TO FORM: CITY OF DIAMOND BAR By: City Attorney Date: ATTEST: City Clerk Mayor JONES INTERCABLE, INC. By: Title. Date: APPROVED AS TO FORM: Corporate Counsel 970204 10572-00009 lsj 0592880 0 - 54 - EXHIBIT A CHAPTER 13.12 OF THE DIAMOND BAR CODE AS ADOPTED AND IN EFFECT ON THE EFFECTIVE DATE OF FRANCHISE RENEWAL 970204 10572-00009 lsj 0592880 0 § 13.12.010 DIAMOND BAR CODE CHAPTER 13.12. CABLE TELEVISION SYSTEM FRANCHISES' DIVISION 1. GENERALLY, Sec. 13.12.010. Short title. The ordinance codified in this chapter shall be known and may be cited as the "Master Cable Television System Franchise Ordinance" or "Master CATV Ordinance." (Ord. No. 14(1989), § 2(16.60.010), 6-27-89) Se - 13.12.020. Definitions. The following words, terms and phrases, when used in this chapter, shall have the mean- ings ascribed to them in this section, except where the context clearly indicates a different meaning. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number and words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory. Advertising receipts means any and all income, compensation, fees and other consider- ation received directly or indirectly by franchisee, derived from any form of advertising, relating directly or indirectly to franchisee's franchise activities and operations. Basic service means the simultaneous.delivery by franchisee to television receivers, or any other suitable type of audio -video communication receivers, of any service other than an enhanced service distributed over the system, and at a minimum must include all public, educational and governmental use (PEG) channels and all broadcast channels required to be carried pursuant to federal law. Cable Act means the Federal Cable Communications Policy Act of 1984, Pub. L. No. 98-549, 98 stat. 2779(1984), which amends the Federal Communications Act of 1934, and as hereafter amended. Cable service means the one-way transmission to subscribers and institutional users of video programming and other programming services, together with return capability, if any. Examples of cable services include but are not limited to: video programming, pay-per-view, voter preference polls in the context of a video program, teletexts, one-way transmission of any computer software, and one-way videotex services, such as stock market information. Cable television system or system means a system of antennas, cables, wires, lines, towers, waveguides, microwaves, microwave, laser beam, fiber optics, master antenna system, mul- tiple distribution system, satellite, or any other conductors, converters, equipment or facilities designed and constructed for the purpose of producing, receiving, amplifying and distributing audio, video, voice, data signals, digital signals, fiber optic signals, and other forms of elec- •Cross references—Entertainment generally, ch. 5.44; streets and. sidewalks, § 12.04.010. CD 13:88 liTILITIES § 13.12.020 tronic or electrical signals, located in the city, and constructed or used for one or more of the following purposes: (1) Collecting and amplifying local and distant broadcast television or radio signals and distributing and transmitting them; (2) Transmitting original cablecast programming not received through television broad- cast signals; (3) Transmitting television pictures, film and videotape programs not received through broadcast television signals, whether or not encoded or processed to permit reception by only selected receivers; (4) Transmitting and receiving all other signals: digital, voice and audio-visual; and (5) Any other applications used in transmitting audio and/or visual signals. Such term also means "community antenna television system" (as that term is used in Gov- ernment Code § 53066), "CATV system," "cable system" or "cable communications system." An exception to the above definition is a state or interstate common carrier over which the city has no jurisdiction. Commission means the county's business license commission. Construction means any new construction, reconstruction, upgrade, mandatory exten- sions, or reconfigurations (e.g., converter change -out, channel upgrades) of the cable television system. Department means the facilities management department, or its successor, of the county. Director means director, facilities management department of the county, or his autho- rized representative. Enhanced service means any service distributed over the subscriber system for which there is a per channel, per unit, or per package charge to the subscriber. FCC means the Federal Communications Commission, its designee or any successor thereto. Franchisee or grantee means the person to whom a franchise is granted pursuant to this chapter, and any person to whom it lawfully may be assigned. Franchise payment period means the period from the effective date of the ordinance granting the franchise through December 31 of the year granting the franchise, and each calendar year thereafter, during the term of the franchise. Franchise property or facilities mean any and all property of the franchisee, including, but not limited to, service connections with the franchisee's facilities, whether installed by the franchisee or not, erected, constructed, installed, laid, operated or maintained in the unincor- porated territory of the county pursuant to any right or privilege granted by the franchise. CD 13:89 § 13.12.020 DIAMOND BAR CODE Franchise report period in all cases means the period from the effective date of the ordi- nance granting the franchise through December 31 of the year of granting the franchise, and each calendar year thereafter, during the term of the franchise. Gross revenues means any and all income, compensation, fees and other consideration received directly or indirectly by franchisee, its affiliates, subsidiaries, parent, and any other person or entity in which the franchisee has a financial interest or which has a financial interest in the franchisee, arising from or attributable to operation of the cable television system, including, but not limited to, the following sources: (1) Installation fees, disconnect and reconnect fees and fees for regular cable benefits, including the transmission of broadcast signals and access and local origination chan- nels, if any, derived from its operations within the authorized franchise area; (2) Basic subscriber receipts; (3) Enhanced service receipts, including, but not limited to, income derived from pre program or per channel charges; (4) Advertising receipts; (5) Lease receipts; and (6) Any other income from any source derived from franchisee's franchise operations. Headend means the electronic processing center for distribution of the signals received from the master antenna. Highway means any public highway, including bridges, freeway (except a state freeway), street, road, alley, lane, trail or court, or other public property or public easement, and above and below the same, which now exists or which may hereafter exist in any territory of the city and in which the city has the authority to grant a franchise. Lease receipts means any and all income, compensation, fees and other consideration received directly or indirectly by franchisee for the lease or rental of franchise property, and compensation for any service in connection therewith including, but not limited to, studio and equipment rental and production costs of any channel permitted or designated by the FCC to be so leased or rented. Leased channel means a channel on the cable system on which the franchisee shall provide open, widespread, and reasonable access to persons who desire to use such channel for com- mercial purposes, as defined in section 612 of the Cable Act. PEG means public, educational and governmental uses as defined in section 611 of the Cable Act. PEG user means a party utilizing a PEG channel for purposes of production or transmis- sion of material to subscribers, as contrasted with receipt thereof in a subscriber capacity. CD13:90 UTILITIES § 13.12.030 Person means any individual, Firm, partnership, association, corporation, joint venture, company or other legally recognized entity, whether for-profit or not-for-profit, but shall not mean the city. Public easement means, but is not limited to, any easement created by dedication to the public, the city, or any public entity, for public -utility purposes or any other purpose whatso- ever. Public entity means any district or other political subdivision of which the city council is ex officio the governing body, or the members of the city council are ex officio members of the governing body. Road commissioner means the commission, board or officer of the state, or of the city, respectively, having powers and duties analogous or similar in such jurisdiction, respectively, to the powers and duties of the road commissioner in the unincorporated territory of the county. Service means any basic service, any enhanced service, or any other service, whether or not originated by the franchisee, which is offered to any subscriber in conjunction with, or which is distributed over, the system. Service area means that area of the city in which the franchisee is authorized to construct and operate, and provide service connections for, a cable television system pursuant to the terms and conditions of the franchise. State of the art means that level of technical performance or capacity, service, plant or other equipment, production or other facilities, or construction techniques for which there is a reasonable market demand and which has been developed and demonstrated to be workable and such that it would be economically feasible and viable in the franchise area during the term of the franchise. Subscriber means any person or entity lawfully receiving for any purpose any service of the franchisee's cable television system, including the ultimate recipient of any distribution of franchisee's service. Tier or tier of service means a grouping of program services on the cable television system which is marketed to subscribers for a single monthly or other charge. (Ord. No. 14(1989), § 2(16.58.020, 16.58.030, 16.58.052, 16.58.054, 16.58.060, 16.58.070, 16.58.075, 16.58.100, 16.58.110, 16.58.115, 16.58.120, 16.58.140-16.58.200, 16.58.205, 16.58.232, 16.58.235, 16.58.240-16.58.270, 16.58.295, 16.58.300, 16.58.305, 16.58.310, 16.58.320), 6-27-89) Cross reference—Definitions generally, § 1.00.070. Sec. 13.12.030. Purpose. It is the purpose of the ordinance codified in this chapter to standardize practices in the cable television industry, to provide for the unified administration of cable television fran- chises, to regulate rates to the extent allowable by federal, state and local laws when necessary CD13:91 § 13.12.030 DIAMOND BAR CODE for the public good, and to regulate the operation of franchises for the purpose of protecting and promoting the public health, safety and welfare in the interests of the subscriber, franchisee, and the public. (Ord. No. 14(1989), § 2(16.60.020), 6-27-89) Sec. 13.12.040. Continuation of provisions. The provisions of this chapter, insofar as they are substantially the same as existing ordinance provisions relating to the same subject matter, shall be construed as restatements and continuations thereof, and not as new enactments. (Ord. No. 14(1989), § 2(16.60.030), 6-27-89) Sec. 13.12.050. Provisions incorporated by reference. In addition to the terms and conditions set out in this chapter, the franchise is granted under the same terms and conditions contained in sections 13.08.050, 13.08.130, 13.08.140, 13.08.170, 13.08.260 through 13.08.280, 13.08.300, 13.08.310, 13.08.330, 13.08.340, 13.08.380 through 13.08.400, 13.08.430, 13.08.450, 13.08.460 and 13.08.500 through 13.08.520 as if they were contained in this chapter. If the terms and conditions hereof conflict with the terms and conditions of chapter 13.08, the terms and conditions of this chapter shall control. (Ord. No. 14(1989), § 2(16.60.040), 6-27-89) Sec. 13.12.060. Franchises granted before December 15, 1978; continuation. Article X, beginning with section 1001, of county ordinance 7468, entitled "the basic franchise ordinance," adopted February 3, 1959, as in effect immediately prior to the effective date of the ordinance codified in this chapter, shall continue in effect notwithstanding its repeal by the provisions hereof, as to all franchises granted prior to December 15, 1978, the effective date of the ordinance codified in this chapter, which refer to, or incorporate by reference ordinance 7468, or article X of such ordinance 7468. (Ord. No. 14(1989), § 2(16.60.050), 6-27-89) Sec. 13.12.070. Statutory provisions applicable. All franchises for a cable television system shall be granted pursuant to Government Code § 53066. (Ord. No. 14(1989), § 2(16.60.060), 6-27-89) Sec. 13.12.080. Paramount jurisdiction of FCC or state public utilities commission. Whenever the FCC or the state public utilities commission or any other federal or state body or agency shall now or hereafter exercise any paramount jurisdiction over any specific provisions of the franchise, such paramount jurisdiction shall preempt or preclude the exercise of like jurisdiction by the city. (Ord. No. 14(1989), § 2(16.60.070), 6-27-89) CD 13:92 UTILITIES § 13.12.110 Sec. 13.12.090. Rights reserved to the city. (a) The rights reserved to the city under this chapter are in addition to all other rights of the city, whether reserved by this chapter or authorized by law, and no action, proceeding or exercise of a right shall affect any other rights which may be held by the city. Franchisee, by acceptance of the franchise, agrees to be bound thereby and to comply with any action or requirement of the city in its exercise of any such right or power. (b) The city shall have the right to waive any provision of the franchise, except those required by federal or state regulation, if the director determines: (1) That it is in the public interest to do so; or (2) That the enforcement of such provision will impose an undue hardship on the fran- chisee or the subscribers. (c) Wherever the franchise requires that an action be taken or not taken by the franchisee or the city on the basis of operational, technological or economic feasibility or viability, the franchisee shall have the burden of demonstrating the existence or lack, as applicable, of such feasibility or viability. (d) The city shall have the power and right at all times for the duration of the franchise to require franchisee to conform to rules and regulations governing the operation of cable television systems now or hereafter adopted by the city council. (Ord. No. 14(1989), § 2(16.60.080), 6-27.89) Sec. 13.12.100. Terms and conditions generally. Every franchise granted by the city after December 15, 1978, to construct from time to time and, for the period covered by the franchise, to maintain and operate a cable television system in the territory of the city, and to maintain, operate, renew, repair and remove lines and cables for the transmission of television and radio signals, together with all appurtenances and service connections necessary or convenient for the provision of a cable television system in, under, along or across any and all service areas, highways, public properties and public easements in the territory of the city, except as otherwise provided in the ordinance granting the franchise, shall be granted upon and be subject to the rules, regulations, restrictions and terms and conditions of this chapter, in addition to such of the terms and conditions of those provisions of division 1 of chapter 13.08, as are incorporated by reference in this chapter, and in addition to those rules, regulations, restrictions, terms and conditions set forth in the ordinance granting the franchise. (Ord. No. 14(1989), § 2(16.60.090), 6-27-89) Sec. 13.12.110. Franchise grant not exclusive. The granting of the franchise shall not be construed to prevent the city from granting any identical or similar franchise to any person other than the franchisee. (Ord. No. 14(1989), § 2(16.60.100), 6-27.89) CD13:93 13.12.120 DIAMOND BAR CODE Sec. 13.12.120. Compliance with chapter provisions. Nothing contained in this chapter shall ever be construed so as to exempt the franchisee from compliance with all ordinances, rules or regulations of the city now in effect or which may be hereafter adopted which are not inconsistent with the terms of the franchise. (Ord. No. 14(1989), § 2(16.60.105), 6-27-89) Sec. 13.12.130. Acceptance of franchise. (a) The franchisee shall, within 30 days after the passage of the ordinance granting the franchise, rile with the city clerk, an express and unconditional written acceptance of the terms and conditions of the ordinance; provided, however, that as to franchises granted to the United States of America, use will constitute acceptance. (b) The parent entity, if any, of the franchisee, shall file a letter with the city, concurrent with the franchisee's letter of acceptance, which guarantees the performance of each and every term, covenant and condition imposed on the franchisee pursuant to the franchise. (c) The franchisee's letter of acceptance shall be signed by a duly authorized representa- tive of the franchisee, whose signature shall be acknowledged by a notary, and shall be accompanied by the performance bond, letter of credit, and evidence of insurance required by this chapter and by the ordinance granting the franchise. (d) The ordinance granting the franchise shall be rendered null and void until such time as the franchisee meets the acceptance criteria contained in this section. (Ord. No. 14(1989), § 2(16.60.110), 6-27-89) Sec. 13.12.140. Acknowledgement of right to franchise. The franchisee, by acceptance of the franchise granted pursuant to the ordinance, ex- pressly acknowledges and accepts the right of the city to issue a franchise. The franchisee further acknowledges and accepts the right of the city to exercise directly or delegate its regulatory power to a subordinate body or its officers, employees, agencies, committees, or departments to ensure the proper implementation of the franchise. (Ord. No. 14(1989), § 2(16.60.115), 6-27-89) Sec. 13.12.150. Term of the franchise. Unless the ordinance granting the franchise provides otherwise, the term of the franchise shall be 15 years. (Ord. No. 14(1989), § 2(16.60.120), 6-27.89) Sec. 13.12.160. Insurance and indemnification requirements. (a) A franchisee shall, at its sole expense, indemnify, defend and save harmless the city, its agents, officers and employees from and against any and all liability, expense, including defense costs and legal fees, and claims for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, or property damage, including property of CD 13:94 UTILITIES § 13.12.160 the franchisee, arising from or connected with either directly or indirectly, franchisee's activ- ities, operations or services hereunder, including any workers' compensation suits, liability or expense, arising from or connected with services performed on behalf of franchisee by any person pursuant to the franchise. Nothing in this section shall be deemed to prevent the parties indemnified and held harmless herein from participating in the defense of any litiga- tion by their own counsel at the franchisee's sole expense. Such participation shall not under any circumstances relieve the franchisee from its duty of defense against liability or of paying any judgment entered against such party. (b) Without limiting a franchisee's indemnification of the city pursuant to subsection (a) of this section and section 13.12.590, the franchisee shall provide and maintain at its own expense during the term of the franchise, the following programs of insurance covering its operations hereunder. Such insurance shall be provided by insurers satisfactory to the di- rector, and satisfactory evidence of such programs shall be delivered to the city, on or before the effective date of the franchise. Insurance policies and certificates evidencing coverage shall name the city, its officers, agents, and employees as additional insureds in respect to the franchisee's operations under the franchise. Such evidence shall specifically identify the fran- chise and shall contain express conditions that the city is to be given written notice by registered mail at least 60 days in advance of any modification or termination of any program of insurance: (1) Liability. Such insurance shall be primary to and not contributing with any other insurance maintained by the city, shall name the city, its officers, agents, and em- ployees as additional insureds, and shall include, but not be limited to: a. Comprehensive general liability insurance endorsed for premises -operations, prod- ucts/completed operations, contractual, broad form property damage and per- sonal injury with a combined single limit of not less than $1,000,000.00 per occurrence. If the above insurance is written on a claims made form, such insur- ance shall be endorsed to provide an extended reporting period of not less than five years following termination of the policy. b. Comprehensive auto liability insurance endorsed for all owned, non -owned, and hired vehicles with a combined single limit of at least $1,000,000.00 per occur- rence. c. Such amounts of coverage shall be subject to review and adjustment by the city, at the city's sole option, at any time during the term of the franchise. In the event of such adjustment, franchisee agrees to provide such amounts as are determined by the city, within 30 days after written notice to do so from the city. (2) Workers' compensation. A program of workers' compensation insurance in an amount and form to meet all applicable requirements of the Labor Code of the state, including employers liability insurance with a $150,000.00 limit, covering all persons providing services on behalf of franchisee and all risks to such persons under the franchise. The franchisee may provide, if applicable, a certificate of consent to self -insure, issued by the director of industrial relations of the state. Should the franchisee utilize the CD13:95 § 13.12.160 DIAMOND BAR CODE self-insurance provision of this section, and the franchisee's certification of consent to self -insure expire or be revoked, the franchisee shall be required to provide a program of workers' compensation insurance prior to or upon such expiration or revocation. (c) The franchisee shall furnish the director, prior to commencement of any franchise operations, either certified copies of the policies required by subsection (b) of this section, or a certificate of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force. (d) No franchise operations shall commence until the franchisee has complied with the provisions of this section, and any such operations shall be suspended during any period that the franchisee fails to maintain such policies in full force and effect. (e) It shall be the franchisee's obligation to provide evidence of current insurance policies. (Ord. No. 14(1989), § 2(16.60.130), 6-27-89) Sec. 13.12.170. Performance bond requirements. (a) On or before the effective date of the ordinance granting the franchise, the franchisee shall furnish the director with a bond, payable to the city, in a form and executed by a corporate surety acceptable to the city and licensed to transact business as a surety in the state. Such a bond shall be maintained in full force and effect at all times during the term of the franchise and shall be in favor of the city in the penal sum of $50,000.00, or such other sum as may be specifically provided for in the ordinance granting the franchise. Such bond shall be conditioned upon faithful performance by the franchisee of the terms and conditions of the franchise and shall provide that, in case of any breach of condition of the bond, the whole amount of the penal sum shall be deemed to be liquidated damages and shall be payable to the city by the principal and sureties of the bond. If the bond is not filed as aforesaid, the award of the franchise may be set aside and the ordinance granting the franchise repealed, and any money paid in consideration for the award of franchise shall be deemed forfeited. The perfor- mance bond may be required in addition to a letter of credit or establishment of a security fund pursuant to section 13.12.200. The rights reserved with respect to the performance bond are in addition to all other rights of the city. (b) The amounts of the bond shall be subject to review and adjustment by the city, at the city's sole discretion, at any time during the term of the franchise. In the event of such adjustment, the franchisee agrees to renew the bond, in an amount as determined by the city,. with sureties to be approved by the city, within 30 days after written notice to do so from the city. (c) The performance bond shall continue to exist for one year following the director's approval of any sale, transfer, assignment or other change of ownership of the franchise, or of the expiration or termination of the franchise, only for the purpose of ensuring the franchisee's faithful performance under the terms and conditions of the franchise prior to the date of approval of the change of ownership, or of expiration or termination. The director may release CD 13:96 UTILITIES § 13.12.3 10 the bond prior to the end of the one-year period upon satisfaction by the franchisee of all obligations under the franchise. (d) No franchise operations shall commence until franchisee has complied with the afore- mentioned provisions of this section, and any such operations shall be suspended during any period that franchisee fails to maintain the bond in full force and effect. (e) It shall be the franchisee's obligation to provide evidence of current bonding coverage. (Ord. No. 14(1989), § 2(16.60.140), 6-27-89) Sec. 13.12.180. Failure to procure or maintain required insurance and bonding. Failure on the part of the franchisee to procure or maintain insurance and bonding as required under the franchise shall constitute a material breach of the franchise upon which the city may immediately terminate or suspend this franchise. (Ord. No. 14(1989), § 2(16.60.145), 6-27.89) Sec. 13.12.190. Assignment of savings and loan certificates, certificates of deposit, cash deposits, or U.S. government securities in lieu of bond. At its sole discretion, the city may accept assignments of savings and loan certificates, certificates of deposit, cash deposits, or U.S. government securities in lieu of commercial bonds to meet the bonding requirements of this chapter. Such alternate bonds shall be made payable to the city and shall be deposited with the county's auditor -controller in the same amount as required on such bond. Assignment of savings and loan certificates shall be subject to all of the provisions set out in this Code. Earnings, if any, on the security provided shall accrue to the franchisee. (Ord. No. 14(1989). § 2(16.60.150), 6-27-89) Sec. 13.12.200. Letter of credit or security fund. In addition to the performance bond required in section 13.12.170, the city may require a clean, irrevocable letter of credit or establishment of a security fund, to be maintained in an amount to be specified in the ordinance granting the franchise, as security for compliance with time and performance requirements of the franchise. If the city withdraws any funds from any such instrument, the franchisee shall replenish the amount withdrawn within ten business days. The rights reserved with respect to a letter of credit or a security fund are in addition to all other rights of the city. (Ord. No. 14(1989), § 2(16.60.155), 6-27-89) Secs. 13.12.210-13.12.300. Reserved. DIVISION 2. APPLICATION Sec. 13.12.310. Filing. Any person desiring a franchise for a cable television system shall file an original appli- cation and 11 copies with the department in its capacity as staff for the business license commission. (Ord. No. 14(1989), § 2(16.62.010), 6.27.89) CD13:97 § 13.12.320 DIAMOND BAR CODE Sec. 13.12.320. Proprietary information. To the extent permitted by law, proprietary information may be kept confidential, if appropriately identified. If an applicant believes that the information it must submit in its application should be treated confidentially by the city, it must so advise the department by letter prior to or with its application. If it is determined by the city that such information is not confidential, the applicant will be so notified and the information will be returned to the applicant at applicant's request. (Ord. No. 14(1989), § 2(16.62.015), 6-27-89) See. 13.12.330. Contents. An application for a franchise for a cable television system shall contain the following information, where applicable: (1) Designation of the specific area to be served by the franchisee to include the following: a. A street map of the area to be served, including the location of proposed or existing headend site (antenna site), microwave sites, if any, and business office; b. The extent, if any, to which the applicant intends to overbuild the existing cable operator's facilities; and c. Inclusion of line extension areas, if any. Line extension areas are those areas which at time of application are not developed sufficiently for provision of cable services within the terms of section 13.12.1210, but are anticipated to reach sufficient development or density of population during the term of the franchise to support the extension of cable services. (2) Identification of the applicant to include the following: a. Indicate corporate or business entity organization of the applicant (e.g., partner- ship, corporation), and submit copies of corporate or business formation papers (e.g., articles of incorporation and bylaws; limited partnership agreement); in- clude the names and addresses of any parent or subsidiary of applicant or any other business entity owning or controlling applicant in whole or in part, or owned or controlled in part by the applicant. b. Indicate basis for acquiring ownership: whether ownership or the holding was acquired at same per-share costs as other owners, whether services or other in-kind contributions are included as a basis for acquiring ownership. c. Indicate whether a buy-out agreement exists, whether written or verbal, giving other stockholders, persons or entities the right to acquire the interest of local stockholders in the future; submit copies of the agreements. d. Resume of prior business history of applicant, including the expertise of applicant in the cable television field. e. List of all stockholders of applicant owning or controlling five percent or more of the stock of the applicant and the percentage of stock owned or controlled by each. CD 13:98 UTILITIES § 13.12.330 f. List of officers of the applicant, together with a description of education and business background of each officer. g. Provide specific information regarding whether the applicant, including the parent entity, if applicable, any principal, manager or any other cable operator of which any principal or manager of the applicant was or is a principal or manager, has ever been: Found guilty of a criminal proceeding (felonies or misdemeanors) in which any of the following offenses have been charged: fraud, embezzlement, tax evasions, bribery, extortion, jury tampering, obstruction of justice (or other misconduct affecting public or judicial officers in the performance of their duties), false/misleading advertising, perjury, antitrust violations (state or federal), violations of FCC regulations, or conspiracy to commit any of the foregoing; 2. A party to a civil proceeding in which he was held liable for any of the following, or is now a party to any such proceedings: unfair or anticompeti- tive business practice, antitrust violations (state or federal) including in- stances in which consent decrees were entered, violations of securities laws (state or federal), false/misleading advertising, violations of FCC regulations, racketeer influences and corrupt organizations, or contraband forfeitures; 3. Subject to any penalty, criminal or civil, involving failure to comply with the requirements of a cable television franchise; 4. Involved in instituting legal action against its franchising authorities; or 5. Involved in revocation/nonrenewal of any other franchises. (3) Financial information shall include a current financial statement of the applicant which has been audited by a certified public accountant. Included shall be a balance sheet, profit and loss statement for at least the three most recent years, and a state- ment of changes in financial position, if in existence for less than three years, for such period of existence. (4) Describe in detail the financing plan for the construction and initial operation of the proposed cable television system and proof of financial capability. Proof of financial capability shall include: a. A showing of sources and amount of equity capital; if equity contribution is borrowed, describe collateral and terms of the loan; b. A showing of sources and amount of debt capital, both primary and secondary; and c. Terms of financing. (5) Supply documentation that demonstrates and insures the applicant's financial via- bility, such as: a. Letters of commitment from financial institutions which demonstrate the avail- ability of sufficient funds to complete construction of the proposed system. Com- mitments conditional on the obtaining of the franchise are acceptable. CD 13:99 13.12.330 DIAMOND BAR CODE b. If the applicant is a multiple system operator, give evidence of the portion of the company's sources of financing which is uncommitted and will be applied to the proposed construction and operation of the system. c. State the amount of equity contribution, plus the method by which the contribu- tion is paid (i.e., cash, cash plus credit, services, etc.). Include financial commit- ment documentation for each investor. d. If the applicant is a division or subsidiary of a multiple operator, provide the proposed debt instrument describing terms of payment, and/or other documenta- tion showing funds committed to the applicant. e. If capital is to be raised or supplied by a parent company or other entity, provide an annual report for the parent entity, or equivalent information if an annual report is not prepared for the parent entity. f. Describe sources and documentation evidencing debt financing. g. The applicant will be required to authorize release of financial information to the city from financial institutions relating to information supplied by the applicant in support of the application. (6) Provide pro forma financial statements. Pro forma financial statements are required for a minimum of five years beginning with the date the franchise agreement is accepted, projected annually through the year the applicant anticipates that all fi- nancing obligations and debts will have been retired. Such pro formas shall include income statements supported by realistic levels of subscriber penetration, including the source of the information and basis for the projection. Sources and uses of funds, loan amortization information, anticipated capital expenditures, construction costs, depreciation schedules, and operating expenses shall be provided and the basic as- sumptions relied upon shall be detailed to support its projections. The information and assumptions shall include financial aspects of miles to be built and types of installation (aerial/underground), building schedule, headends, other capital invest- ments and planned coverage; debt, debt equity ratio, debt service costs; depreciation; operating costs in detail; assumed market penetration rate; expected internal rate of return; discuss fixed and variable costs; and such other relevant information as the city deems appropriate. (7) Provide a construction schedule, describe type and placement of construction, detail phases of construction, and include a map correlated to the phases of construction. Include copies of any agreement with utility companies for the use of any facilities including, but not limited to, poles, lines and conduits. (8) Proposed rates and charges to be charged subscribers; indicate the extent to which the franchisee proposes to utilize bulk rate contracts, promotional considerations, or lock box charges and other charges, if any. (9) Description of system configuration, programming and equipment to include: a. A technical schematic of the system that will be used to provide coverage to the service area. CD13:100 UTILITIES § 13.12.330 b, An itemized list of the electronic equipment to be used, channels to be provided, pay TV or additional services; indicate channel lineup for basic service and other service tiers (by service tier), and type of converter; include the manufacturer, type and model numbers (aerial and underground, including drops), active elec- tronics including power supplies and standby power systems, and passive elec- tronics; describe the need for and proposed use of converters including an expla- nation or the conditions under which converters will be furnished. c. A description of headend design and reception facilities, including make and model numbers of antennas, signal processors, modulators, demodulators, FM processors and status monitoring systems. Indicate whether signal studies or measurement programs have been undertaken in selecting the headend sites and microwave sites, if any. d. A description of any other headend and/or subscriber terminal equipment that will be or may be installed for pay-per-view service, other interactive services, text display, home security, etc. Give full details of immediate and longterm plans including arrangements actually made. e. A summary spectrum utilization chart. f. Make and model number of emergency override system, describe how the system will work, how and from where the system will be activated. g. A description of equipment for standby power (for headend, transportation and trunk amplifiers); length of time standby power will be provided. h. A description of equipment to be used for programming any automated channels, including make and model numbers of the equipment. i. A discussion of channel expansion capability in respect to both the shortterm and longterm, including specific. reference to the degree of flexibility available for adapting the system to increasing or changing capacity requirements. (10) Forecast of number of homes in franchise service area, number of homes to be passed, if different from number of homes in the franchise service area, and projected number of subscribers, market penetration. (I1) Description of technical standards to which the system will conform. Information shall include, but not be limited to: Carrier to noise ratio, composite triple beat, and cross modulation specifications. Provide the calculations supporting these specifica- tions associated with the transmission paths described in subsections (9)a, (9)b and (9)c of this section. All supporting calculations shall be related to full loading of unmodulated television signals. Any enhancements such as HRC channelization, synchronous carriers of FM modulation shall be separately stated. a. Worst-case satellite received signal to the most distant subscriber, including distribution system and super trunk effects. b. Worst-case off -air -signal to most distant subscriber, including distribution and super trunk effects. c. Worst-case most distant institutional originators to most distant subscriber, in- cluding upstream path distribution system and longest super trunk effects. CD13:101 § 13.12.330 DIAMOND BAR CODE Amplifier cascade. Indicate the number of amplifiers, number of miles and type of cable in the longest amplifier cascade in the proposed cable system. (12) Disclosure of whether the applicant is in process of acquiring other cable systems or businesses which could impact its resources (management and financial) available to construct, upgrade, maintain and operate the franchise. Indicate any plans for future acquisitions within the next two years which could impact the applicant's ability to furnish service. (13) If a limited partnership, indicate if there are any plans to sell/dissolve the partnership within the term of the franchise. (14) Indicate provisions for PEG programming. At the minimum, the franchisee shall make available as of the date of initiation of cable services, the capability of broad- casting a tape which a PEG user provides to the franchisee for showing on the system, subject to legislative guidelines dealing with copyright clearances, obscenity provi- sions and other appropriate areas concerning acceptance of programming for viewing, and within 12 months of initiation of cable services, provide videotaping and editing capabilities for PEG users. To the extent feasible at time of application, describe the facilities, equipment, training for residents, funding and staffing which franchisee will ensure are available for residents of the franchise service area. The program plan should provide for a comprehensive and well-balanced production capability which will enable the user to produce programming in a studio and to videotape productions at remote locations. The program plan shall address, but not be limited to, the fol- lowing areas: a. Establishment of a citizens group reflecting the community needs and interests to advise the franchisee and the franchising authority on the utilization of the community access resources. b. Description of training opportunities for the residents of the area and the staff of the franchising authority. c. Description of funding sources and available grants for the support of community access programming. d. Description of an information outreach program for the community regarding community programming opportunities. e. Description of franchisee's capital financial obligation to support the plan de- scribed in this section. f. Description of facilities, equipment and materials franchisee will ensure are available for use of the residents. Plan may include several phases of commit- ment and implementation. g. Provision for a periodic reassessment of community needs and interests, to be conducted within a minimum of three years and a maximum of five years, which will determine whether additional facilities, equipment, materials and/or training opportunities are needed to meet changing community needs and interests during the term of the franchise. CD13:102 UTILITIES § 13.12.350 (15) Any other details, statements, information cr references pertinent to the subject matter of such application which shall be required or requested by the city or by any provision of law. (Ord. No. 14(1989), § 2(16.62.020), 6-27.89) Sec. 13.12.340. Franchise processing fee. (a) Upon submission of an application, the applicant/franchisee shall pay to the city a nonrefundable franchise processing fee as follows: (1) Initial grant of franchise or renewal of existing franchise: a. Franchise area containing less than 1,000 homes: $1,000.00; b. Franchise area containing 1,001 to 5,000 homes: $2,500.00; c. Franchise area containing 5,001 to 10,000 homes: $5,000.00; and d. Franchise area containing 10,001 or more homes: $7,500.00. If the franchise area contains less than 100 homes, franchisee may receive credit for all or a portion of the processing fee. Such credit shall be applied to franchise fee payments required by section 13.12.810. Granting the credit shall be at the sole discretion of the board and shall be based upon economic and/or technological con- siderations specific to the franchise area. (2) Consent to sale, transfer, transfer of stock, assignment, lease, hypothecation or trust of franchise, not requiring modification of the franchise by adoption of an amending ordinance: $1,000.00. (3) Modification of franchise requested by franchisee requiring the adoption of an amending ordinance: $2,500.00. (4) Consent to sale, transfer, transfer of stock, assignment or lease, or any other action requiring modification of franchise by adoption of an amending ordinance: $2,500.00. (5) Modification of franchise resulting from noncompliance with one or more provisions of the franchise which requires the adoption of an amending ordinance: $2,500.00. (b) The applicant may be required to pay any additional costs incurred by city in the processing of the applicant's request for franchise, renewal, modification, consent to sale, transfer, transfer of stock, assignment, lease, hypothecation or trust of franchise. Such costs may include the costs incurred for hiring consultants to assist in evaluating the application. Such costs shall be paid by the applicant prior to final consideration of the request by the director or the city council, as applicable. (Ord. No. 14(1989), § 2(16.62.025), 6.27-89) Sec. 13.12.350. Distribution of copies. Upon receipt of an application for franchise, the department shall transmit one copy each thereof to the appropriate city departments. (Ord. No. 14(1989), § 2(16.62.030), 6-27-89) CD13:103 § 13.12.360 DIAMOND BAR. CODE Sec. 13.12.360. Deposit of publication and notice costs. Upon receipt of an application for franchise, the commission shall estimate the cost of publication and posting of the notice of hearing, as provided in this division, and shall notify the applicant of the amount thereof. No further action will be taken on the application until the estimated cost of publication and posting has been deposited with the commission by the applicant. (Ord. No. 14(1989), § 2(16.62.040), 6-27-89) Sec. 13.12.370. Public hearing—Scheduling prerequisites. Upon receipt of the required deposit, the commission shall set the application for a hearing at a time and date approved by the director. Notwithstanding the foregoing, no application for franchise shall be set for hearing unless it contains the information required by section 13.12.330. (Ord. No. 14(1989), § 2(16.62.050), 6-27-89) Sec. 13.12.380. Same—Notice requirements. Not less than ten days before the hearing, the commission shall give notice in writing of the time, date and place of hearing to the director, the auditor -controller, and the applicant. The commission shall serve such notice upon the applicant by first class mail, postage prepaid. (Ord. No. 14(1989), § 2(16.62.060), 6-27-89) Sec. 13.12.390. Posting notice—Contents. (a) The posted notice of hearing shall state that an application has been made for a cable television franchise for (specify area to be served) and shall contain the following statement: "Any person having objections to the granting of the franchise for which the appli- cation is made, or wishing to suggest any other terms and conditions which should be included in such franchise, may, at any time prior to the date above named, file with the commission in writing, objections or suggestions, or both, giving the reasons therefor, and may appear at the time and place of the hearing to be heard relative thereto." (b) The notice shall also indicate the address and telephone number of the commission. (Ord. No. 14(1989), § 2(16.62.070), 6-27-89) Sec. 13.12.400. Same—Location. In those places, a minimum of two places, up to and including a maximum of ten places, within the proposed franchise service area to be served which the commission finds will most adequately notify the inhabitants thereof, the commission, not less than five days prior to the hearing, shall post notice of the time, date and place of hearing at each of the selected loca- tions. (Ord. No. 14(1989), § 2(16.62.080), 6-27.89) CD 13:104 UTILITIES § 13.12.450 Sec. 13.12.410. Publication of notice. Not less than five days before the hearing, the cominission shall publish in a newspaper of general circulation circulated within the area to be served, and pursuant to Government Code § 6061.3, the same notice as is required to be posted. (Ord. No. 14(1989), § 2(16.62.090), 6-27-89) Sec. 13.12.420. Posting and publication costs. If the cost of publication and posting of notice of hearing exceeds the amount deposited by the applicant, the commission shall bill applicant for the deficiency. The applicant shall pay the whole of such bill within 30 days after receipt thereof. If the amount of the deposit exceeds the cost of publication and posting, the city shall refund the difference to the applicant. (Ord. No. 14(1989), § 2(16.62.100), 6-27-89) Sec. 13.12.430. Protests and suggestions; filing time. Any person interested, at any time after the filing of an application as provided in this division and prior to the hearing thereon, may File with the commission written protests or suggestions, or both, either against the granting of the franchise or to suggest any terms and conditions which should be included in the franchise. The commission, in considering the application, shall give consideration to all of such protests and suggestions. (Ord. No. 14(1989), § 2(16.62.110), 6-27-89) Sec. 13.12.440. Conduct of public hearing. At the time and place set for the hearing or at the time and place to which the hearing may be continued by the commission, the commission shall hear the applicant, who may present any evidence to show why the franchise should be granted, why certain terms or conditions should be imposed or not imposed on such franchise, if granted, and also shall hear testimony or statements of other persons who may attend the hearing and present reasons why the application should be denied, or why, if granted, the franchise should or should not be subject to certain conditions. (Ord. No. 14(1989), § 2(16.62.120), 6-27.89) Sec. 13.12.450. Recommendations following hearing. Within 30 days after the close of the hearing, and based upon the evidence received at the hearing and other matters which the commission is required to consider, the commission shall file with the city council its recommendations as to whether or not the application should be granted and, if granted, subject to what conditions. The commission shall send a copy of its recommendations to the applicant, the director, the auditor -controller, and the director of public works. (Ord. No. 14(1989), § 2(16.62.130), 6-27-89) CD13:105 § 13.12.460 DIAMOND BAR CODE Sec. 13.12.460. Council action on recommendations. Upon receipt of the recommendations of the commission, the city council may take any one of the following actions: (1) The action recommended by the commission; (2) Refer the matter back to the commission with or without instructions; (3) Require a transcript of the testimony and any other evidence received by the com- mission and take such action as in its opinion is indicated by the evidence; or (4) Set the matter for public hearing before itself. Such public hearing shall be held de novo as if no hearing previously had been held. (Ord. No. 14(1989), § 2(16.62.140), 6-27-89) Sec. 13.12.470. License agreement; processing fee. In the case of an application for a license agreement to construct and maintain a portion of a cable television system along, over, across or under public rights-of-way to extend cable television services to a franchise granted by one or more franchising authorities, the applicant shall pay a license agreement processing fee of $1,000.00. The applicant may be required to pay any additional costs incurred by the city in the processing of the applicant's request for a license agreement. Such costs may include the costs incurred for hiring consultants to assist in evaluating the application for a license agreement. (Ord. No. 14(1989), § 2(16.62.150), 6-27-89) Sec. 13.12.480. Authority to execute license agreements. The director may execute license agreements for the use of county roads and county easements by cable television systems operating within the city which do not exceed 15 years in term. (Ord. No. 14(1989), § 2(16.62.160), 6-27-89) Sec. 13.12.490. Line extension areas; authority to grant. (a) When franchisee makes application for a franchise or renewal of a franchise, and there exists an area or areas adjacent to the requested franchise service areas, which at the time of application have not reached sufficient development or density of population to require the provision of cable services within three years of the granting of the franchise or renewal, but for which it is anticipated that such development or density will occur within the term of the franchise, the franchisee may include in the application a request for such areas to be included as line extension areas. The application shall include a map on which the line extension areas are indicated. (b) The director shall have the authority to grant one or more line extensions during the term of the franchise. As a condition to the granting of the extension of cable service to the line CD 13:106 UTILITIES § 13.12.500 extension areas, the director may impose additional terms and conditions upon the franchise which the director may deem to be in the public interest. (c) At such time as the franchisee determines that the line extension areas have developed sufficiently to warrant the extension of cable services, the franchisee shall apply to the director for approval to extend cable services. The application shall include, but not he limited to, a map of the areas to be constructed, a construction schedule, an estimate of construction costs, a copy of the complaint record as identified in section 13.12.1390(d), and other applicable information required by the director. (d) After approval to proceed with the line extensions, and upon notification by the fran- chisee that construction of the areas has been completed, the areas shall be considered a part of the franchise service areas, as if originally granted in the ordinance granting the franchise, and the term of the franchise for such extension areas shall expire when the term of the original franchise areas expires. The director shall issue written notice to the franchisee that the areas shall thereafter be considered as if a part of the original franchise service area. A copy of the notice shall also be filed with the city council for its records. (e) The franchisee shall provide to any areas constructed under the line extension policy the same services at the same rates by the franchisee as the franchisee provides to those service areas in the original franchise service areas, as set forth in section 13.12.1210. (Ord. No. 14(1989), § 2(16.62.180), 6-27-89) Sec. 13.12.500. Request for new extension areas to be included in franchise; authority to grant. (a) During the life of the franchise, should the franchisee determine that any undeveloped areas not included in the original franchise application as line extension areas reach sufficient development to warrant the extension of cable services, the franchisee shall apply to the director for approval to extend cable services to such new extension areas. At the director's sole option, the director may elect to refer the application to the city council or the commission for action on the request. (b) An application shall be submitted to the director which shall include, but not be limited to, maps of the areas to be constructed, an estimate of the number of homes in the areas, a construction schedule, an estimate of construction costs, a copyof the complaint record as identified in section 13.12.1390(d), and other applicable information required by the di- rector. The application shall be accompanied by a processing fee, in an amount determined according to the requirements of section 13.12.340, based on the homes contained in the newly requested areas. (c) As a condition to the granting of the extension of cable service to the requested ex- tension areas, the director or city council or commission, as applicable, may impose additional terms and conditions upon the franchise which the director or city council or commission, as applicable, may deem to be in the public interest. CD 13:107 § 13.12.500 DIAMOND BAR CODE (d) Upon the director's or commission's or city council's determination to consent to the request to add new extension areas to the franchise, the director shall issue written notice to the franchisee. Such written notice shall include maps and legal descriptions of the new extension areas. A copy of the notice shall also be filed with the city council for its records. (e) Any such new extension areas shall be considered a part of the franchise service areas as if originally granted in the ordinance granting the franchise, and the term of such new extension areas shall expire when the term of the original franchise areas expires. M The franchisee shall provide to any areas constructed under this section the same services at the same rates as franchisee provides to those service areas in the original fran- chise areas, as set forth in section 13.12.1210. (g) The director shall advise the city council and the commission on a semiannual basis of the status of all new extensions granted during the preceding period. (Ord. No. 14(1989), § 2(16.62.190), 6-27.89) Sec. 13.12.510. Liquidated damages. (a) By acceptance of a franchise granted by the city, the franchisee understands and shall agree that failure to comply with any time and performance requirements as stipulated in this chapter and the ordinance granting the franchise (franchise agreement) will result in damages to the city and that it is and will be impractical to determine the actual amount of such damage in the event of delay or nonperformance. Each of the amounts set forth in this section has been set in recognition of the difficulty in affixing actual damages arising from breach of the franchise agreement. The franchise agreement may include provisions, where applicable, for liquidated damages to be paid to the city by the franchisee, in the following amounts, or amounts set forth in the franchise agreement, and chargeable to the letter of credit or security fund, should the franchisee not make payment within 30 days of written notice by the city that the following amounts are due for the following concerns: (1) Failure to complete system construction in accordance with the franchise agreement, unless the director approves the delay due to the occurrence of conditions beyond the franchisee's control: $500.00 per day for each day, or part thereof, that the deficiency continues. (2) Failure to provide data, documents, or reports within ten days after a written request, or within such longer time as may be specified in the request: $50.00 per day for each day, or part thereof, that each violation continues. (3) Failure to test, analyze and report on the performance of the system following a written request pursuant to the franchise agreement within such time as may be specified in the request: $100.00 per day for each day, or part thereof, that such noncompliance continues. (4) Failure to provide in a continuing manner the type of services proposed in the fran- chisee's application as incorporated into the ordinance granting the franchise, unless the director approves a delay or change, or the franchisee has obtained a modification CD13:108 UTILITIES § 13.12.520 of its obligation under section 625 of the Cable Act: $500.00 per day for each day, or part thereof, that each noncompliance continues. (5) Failure to construct cable system to an area meeting the density requirements fol- lowing a written request therefor, within such time as may be specified in the request: $100.00 per day for each day, or part thereof, that each noncompliance continues. (6) Failure to provide required notices to subscribers: $1.00 per subscriber per month for each month, or part thereof, that each noncompliance continues. (7) Failure to provide current evidence of insurance and bonding: $100.00 per month for each month, or part thereof, that each noncompliance continues. Nothing in this section shall preclude immediate termination or suspension of franchise, as provided for under section 13.12.180 for franchisee's failure to procure or maintain the re- quired insurance and bonding. (8) Nothing in this section shall preclude further liquidated damages as agreed upon by the parties in the franchise agreement. (b) If the director determines that the franchisee is liable for liquidated damages, the director shall issue to the franchisee by certified mail written notice of intention to assess liquidated damages. Assessments shall begin to accrue as of the date of the written notice and as set forth in the notice. The notice shall set forth the basis for the assessment and give the franchisee a reasonable time in which to remedy the violation. (c) The franchisee shall have the right to appeal any notice to the director, by certified mail, within 15 days of receipt of notice. The director shall hold an administrative hearing within 60 days of receipt of an appeal. The director's decision shall be final. (d) If the franchisee does not appeal the notice within the 15 -day period, the franchisee shall pay the amounts of liquidated damages as indicated in the notice. If payment is not paid, as provided for in this section, the city may draw against the letter of credit or security fund in the specified amounts. (Ord. No. 14(1989), § 2(16.60.157), 6-27-89) Sec. 13.12.520. Grant and forfeiture conditions. (a) The franchise is granted and shall be held and enjoyed upon each and every condition contained in the ordinance granting the franchise and each and every condition contained in this chapter, and shall ever be strictly construed against the franchisee. (b) In addition to all other rights and powers retained by the city under this chapter or otherwise, the city reserves the right to suspend or revoke and terminate a franchise and all rights and privileges of a franchisee in the event of a material breach of its terms and condi- tions. In interpreting this section, material provisions shall include all labeled as such and all others, which, under all the facts and circumstances indicated, are a significant provision of CD13:109 § 13.12.520 DIAMOND BAR CODE the franchise agreement. A material breach by the franchisee shall include, but shall not be limited to, the following: (1) Violation of any material provision of the franchise or any material rule, order, regulation or determination of the city made pursuant to the franchise; (2) Attempt to evade any material provision of the franchise or practice any fraud or deceit upon the city or its subscribers or customers; (3) Failure to begin or complete system construction, reconstruction or system extensions as provided under the franchise; (4) Failure to provide the types of facilities, equipment or services promised; and (5) Material misrepresentation of fact in the application for or negotiation of the fran- chise. The foregoing shall not constitute a material breach if, in the opinion of the city council, the violation occurs without fault of the franchisee or occurs as a result of circumstances beyond its control. The franchisee shall not be excused by mere economic hardship nor by misfeasance or malfeasance of its shareholders, directors, officers or employees. (c) The director, prior to any suspension or revocation and termination of the franchise, shall give to the franchisee not less than ten days' notice in writing of any default thereunder. If the franchisee does not within the noticed period begin the work of compliance or, after such a beginning, does not prosecute the work with due diligence to completion, the city council shall hold a hearing, at which the franchisee shall have the right to appear and be heard. Notice of the hearing shall be given to the franchisee by certified mail not less than ten days before the hearing. (d) Upon the conclusion of the hearing, the city council may determine whether such conditions are material and essential to the franchise and whether the franchisee is in default with respect thereto and may declare the franchise suspended or revoked and terminated. No revocation and termination shall become effective less than 30 days after the council's decla- ration to revoke and terminate; and no lapse of time, expenditure or any other thing shall be deemed to give the franchisee any vested right or interest in the continuation of the franchise granted. (Ord. No. 14(1989), § 2(16.60.160), 6-27-89) Sec. 13.12.530. Costs of technical assistance. The franchisee shall pay the costs incurred by the city for any technical assistance deemed necessary by the city for obtaining independent verification of technical compliance with all franchise imposed standards. (Ord. No. 14(1989), § 2(16.60.165), 6-27.89) CD13:110 UTILITIES § 13.12.540 Sec. 13.12.540. Sale, transfer, stock transfer, lease, assignment, hypothecation or change in control of franchise; conditions. (a) The franchisee shall not sell, transfer, assign, lease, hypothecate, place in trust or change the control of the franchise or any part thereof, except with the prior consent of the director, and after payment of the fees required by section 13.12.340. Director's consent shall not be unreasonably withheld. As used in this section, the word "transfer" includes stock transfer and the word "control" includes actual working control in whatever manner exer- cised. (b) The franchisee shall inform the director of any pending sale, transfer, lease, assign- ment, hypothecation, placing in trust or change in control, except as excluded in subsection (e) of this section. The transferor and transferee must file an application for the director's consent to transfer control of or assign the franchise as set forth in subsections (g) and (h) of this section. Such applications shall be accompanied by the fees required in subsection 13.12.340(a) and shall be signed by duly authorized representatives and the signature acknowledged by a notary. (c) The franchisee shall file with the director a certified copy of the duly executed instru- ment of such sale, transfer, assignment, lease, hypothecation, trust or change in control within 30 days of the effective date of such sale, transfer, assignment, lease, hypothecation, trust or change in control. If such duly executed instrument is not filed with the director within 30 days after the effective date of such sale, transfer, assignment, lease, hypothecation, trust or change in control, then upon the expiration of 30 days, the franchise shall be subject to forfeiture and the city council may, without notice, by ordinance repeal the franchise. (d) As a condition to the granting of consent to such sale, transfer, assignment, lease, hypothecation, trust or change in control, the city council may impose such additional terms and conditions upon the franchise and upon the grantee or assignee which the director rec- ommends or the city council deems to be in the public interest. Such additional terms and conditions shall be expressed by ordinance. Nothing contained in this section shall be con- strued to grant to the franchisee the right to sell, transfer, assign, lease, hypothecate, place in trust or change control of the franchise or any part thereof, except in the manner described in this section. This section applies to any assignment, whether by operation of law, by voluntary act of the franchisee, or otherwise. (e) Shareholders and/or partners of the franchisee may transfer, sell, exchange, assign or divest themselves of any interest they may have therein. However, if any such sale, transfer, exchange, assignment, divestment or other change is effected in such a way as to give control of or 25 percent or more interest in the franchisee to any persons, corporation, partnership or legal entity other than the controlling interest therein on the effective date of the franchise or the effective date of the last assignment, sale, transfer, or other action which required the city council's or director's consent, consent thereof shall be required. (f) Consent to any such transfer shall only be refused if the director finds that the fran- chisee is in noncompliance with terms and conditions of the franchise and/or that the trans- CD13:111 § 13.12.540 DIAMOND BAR CODE feree is lacking in experience and/or financial ability to operate the cable television system authorized by the franchise. (g) The transferor's (assignor's) application shall include: (1) Identification and ownership of transferee. In its application for consent, transferor shall identify the transferee and its ownership in the same detail as if the transferee were an applicant for an initial grant. (2) A copy of the complaint record as identified in subsection 13.12.1390(d). (3) Financial statements. Current financial statements showing the financial condition of the franchise as of the date of the application. The transferor shall also agree to submit financial statements showing the condition of franchise as of the closing. Such financial statements shall have been audited and certified by an independent certified public accountant, and shall be submitted within 90 days of the closing. (4) The submittal of a final accounting and report of franchise fees set forth in division 3 of this chapter within 30 days of the effective date of approval of transfer/assign- ment of the franchise, or of the date of close of the transfer/assignment. The transferee shall be responsible for any underpayment, and shall be entitled to a credit for any overpayment. (h) The transferee's (assignee's) application shall include: (1) A specific and complete response to the criteria set forth in section 13.12.330 in as complete a form as if the transferee were applying for an initial franchise. (2) Current financial statements of the proposed transferee and other such information and data, including, but not limited to, sources of capital, as will demonstrate con- clusively that the transferee has all the financial resources necessary to acquire the cable television system, carry out all of the terms and conditions of the franchise, remedy any and all defaults and violations of the provisions of this division and of the ordinance granting the franchise in the transferor's past and present operations, make such other improvements and additions as may be required or proposed in the services and facilities, including, but not limited to, upgrading, rebuilds, and exten- sions of facilities and equipment. (3) A statement of any changes in rates and charges which the transferee proposes to make during the first three years following approval of the transfer or assignment. (4) An express and unconditional written acceptance of the terms and conditions of the existing franchise, and the franchise, as modified, as a condition to the transfer, accompanied by such guarantees as meet the requirements of subsections 13.12.130(b) and (c). CD 13:112 UTILITIES § 13.12.570 (5) A summary of the plans and commitments of the transferee to remedy the specific defaults and violations, if any, in the operations of the cable operator (transferor) under the existing franchise. (Ord. No. 14(1989), § 2(16.60.170), 6-27-89) Sec. 13.12.550. Overlapping franchise areas held by one franchisee. If a franchisee acquires an additional franchise which results in the overlapping in whole or in part of any franchise service areas, the director shall determine which of the two fran- chises shall prevail as to the overlapping areas, and the franchise service area granted in the nonprevailing franchise shall be reduced by ordinance to delete the overlapping areas. (Ord. No. 14(1989), § 2(16.60.175), 6-27-89) Sec. 13.12.560. Franchise fee; report requirements. (a) The franchisee, during the term of the franchise, within 60 days after the expiration of each calendar year, shall file with the county auditor -controller and the department, one copy to each, of a report verified by the oath of the franchisee, or by the oath of a duly authorized representative of the franchisee, setting forth in detail the computation of the amount of the franchise payment due for the immediately preceding calendar year. For each physically separate transmission and distribution system, any portion of which is located within the franchise area, the report shall contain: (1) A detailed profit and loss statement showing all gross receipts and expenses derived from the franchisee's franchise operations during the reporting period. (2) The total number of service connections in operation as of the last day of the calendar year. (b) The franchisee shall also provide, on request, such additional data as is reasonably necessary in the opinion of the county auditor -controller to calculate or verify the calculation of the annual payment required by section 13.12.810. (Ord. No. 14(1989), § 2(16.60.180), 6-27-89) Sec. 13.12.570. Reports to director or department. The franchisee shall file with director or department, as applicable, the following reports: (1) An annual cable report, including, but not limited to, an annual status report, and a construction report, if applicable, in a form prepared by the director, to the depart- ment on or before January 31 of each year, or as determined by the department. The franchisee shall include a copy of the most recent annual equal employment oppor- tunity report filed pursuant to section 634 of the Cable Act. (2) Other reports, documents, data and annual proof of performance as deemed necessary by director for the administration and review of the franchisee's performance under the terms and conditions of the franchise. CD13:113 § 13.12.570 DIAMOND BAR CODE (3) Within 60 days of the effective date of the ordinance granting the franchise, the franchisee shall begin submittal to the department of a monthly construction activity report reflecting the construction status for the preceding month. The report shall include the status of permits, number of miles constructed, number of homes passed, any conditions which may affect the construction schedule, and any other information required by the director. Unless otherwise instructed by the director, such monthly reports will be required until the completion of construction activities. (4) After the completion of initial construction, at such times as construction or recon- struction activities are undertaken during the term of the franchise, the franchisee shall be required to submit quarterly construction reports containing the information required in subsection (3) of this section. (Ord. No. 14(1989), 5 2(16.60.182), 6.27-89) Sec. 13.12.580. Reports to director of public works. The franchisee, during the term of the franchise, within 60 days after the expiration of each calendar year, shall: (1) File a report with the director of public works, which shall contain a street and highway map of any convenient scale on which shall be plotted the location of the headend facilities and the entire transmission and distribution system covered by the report as of the last day of the franchise payment period, with all that part of the system located in county highways indicated by distinctive coloration or symbols. The submission of this map for general reference purposes shall not relieve franchisee of the obligation to file with the director of public works the more detailed map required by section 13.08.130, as incorporated by reference in this section. The franchisee shall also provide on request such additional data as is reasonably necessary in the opinion of the county auditor -controller to calculate or verify the calculation of the annual payment required by section 13.12.820. (2) File with the director of public works a report in duplicate showing. a. The permit number of each permit obtained for the doing of any work under the franchise for which a permit is required during the immediately preceding fran- chise report period; and b. The lineal length of lines and cables installed pursuant to each permit during the immediately preceding franchise report period. (Ord. No. 14(1989), § 2(16.60.185), 6-27-89) Sec. 13.12.590. Liability and indemnification. (a) The franchisee shall indemnify and hold the city harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses, including reasonable attorneys' fees, regardless of the merit or outcome of any such claim or suit, claimed or arising from any negligent or intentional act or omission of the franchisee, its officers, employees, agents or subcontractors, arising from activities or work conducted pursuant to the franchise. CD13:114 UTILITIES § 13.12.630 (b) The franchisee shall indemnify, defend and save harmless the city, its officers, agents and employees, from and against any and all claims and losses whatsoever, including reason- able attorneys' fees, accruing or resulting to any and all persons furnishing or supplying work, services, materials, equipment or supplies in connection with activities or work conducted or performed pursuant to the franchise and arising out of such activities or work, and from any and all claims and losses whatsoever, including reasonable attorneys' fees, accruing or re- sulting to any person for damage, injury or death arising out of the franchisee's franchise operations. (Ord. No. 14(1989), § 2(16.60.190), 6-27-89) Sec. 13.12.600. Additional terms and conditions. In addition to the provisions of section 13.12.540, any time a franchisee applies for a change in territory, service area, or bonding, the city council may impose such additional terms and conditions upon the franchisee and upon the grantee or assignee which the city council may deem to be in the public interest. Such additional'terms and conditions shall be expressed by ordinance. (Ord. No. 14(1989), § 2(16.60.200), 6-27.89) Sec. 13.12.610. Permit required for certain work. Notwithstanding the granting of a franchise, the franchisee shall not be authorized to do any work under the franchise for which the issuance of a permit is required unless such a permit is issued for such work. Additional bonding, certificates of deposit, evidences of insur- ance or other documentation may be required by other city departments prior to the issuance of such permits. The franchisee shall not have an absolute right to the issuance of such a permit. (Ord. No. 14(1989), § 2(16.60.210), 6-27-89) Sec. 13.12.620. Area under franchise; rights of franchise. Unless the ordinance granting the franchise provides otherwise, the franchise shall au- thorize the exercise of the rights and privileges granted by the franchise in the service areas, highways, public properties and public easements as may be described in the ordinance granting the franchise and such additional service areas, highways, public properties and public ease- ments as may from time to time be approved by the city council. (Ord. No. 14(1989), § 2(16.60.220), 6-27-89) Sec. 13.12.630. Purchase of franchise property by city. (a) The city, or its successor in authority, upon termination or forfeiture of the franchise, or at any time during the term of the franchise and, after five years from the effective date of the ordinance granting the franchise, shall have the option to purchase all or part of the franchise property, upon making reasonable compensation therefor. The city's right to pur- chase the franchise property under this chapter shall not be construed as a waiver of any other rights the city may have. If the city elects to purchase the franchise property in accordance CD 13:115 § 13.12.630 DIAMOND BAR CODE herewith, the compensation shall be computed as provided in Code of Civil Procedure § 1263.310 et seq.; provided further that such purchase shall be at an equitable price, which shall not include compensation for loss of good will or any valuation of the franchise itself or of any of the rights or privileges granted by the franchise. Other terms and conditions of the sale shall be mutually agreed upon by the parties. (b) Notwithstanding the provisions of subsection (a) of this section, in the case of any franchise granted after December 29, 1984, if a renewal of such franchise is denied, any acquisition of the cable system by the city shall be at fair market value, determined on the basis of the cable system valued as a going concern but with no value allocated to the franchise itself. (c) If the franchise is revoked and terminated and the city elects not to purchase the franchise property hereunder, the franchisee agrees to waive all claims for damages or com- pensation which it may have against the city as a result of such revocation and termination; provided, however, that the franchisee does not hereby waive its rights to a judicial determi- nation of the validity of such revocation and termination. (Ord. No. 14(1989), § 2(16.60.230), 6-27-89) Sec. 13.12.640. Fair employment practices; statutory provisions incorporated by ref- erence. The franchisee shall not make any discrimination, distinction or restriction on account of color, race, religion, sex, ancestry or national origin contrary to the provisions of Civil Code § 51, which is incorporated in this section by reference. All applicable provisions of Government Code §§ 12900-12996 (California Fair Employment and Housing Act) are hereby incorporated in this section by reference. The franchisee further agrees to comply with applicable antidis- crimination provisions of section 634 of the Cable Act. (Ord. No. 14(1989), § 2(16.60.240), 6-27-89) Sec. 13.12.650. Access to trenches. (a) In cases of new construction or property development where utilities are to be placed underground, the franchisee shall, if practical, install underground cable at the same time and in the same trenches as the public improvements (e.g., communications, electric, gas, water) are installed. (b) If the franchisee is notified of the date the trenches are available and fails to install its conduit and/or cable within five working days of the date the trenches are available, and the trenches are thereafter closed after the five-day period, the cost of new trenching is to be borne by the franchisee. (c) The requirements of subsections (a) and (b) of this section shall not apply unless the property owner offers the franchisee the same terms with respect to availability and cost of trenching for undergrounding as are offered to other trench users, if any. CD13:116 UTILITIES § 13.12.690 (d) If a subdivider, property developer or an entity owned by, associated with or under the control of a subdivider or developer has a franchise to provide cable services to an area including its property developments, the franchisee shall be required to make access to the utility trenches in the developments available to all franchisees authorized to provide cable services to an area including the developments. Access shall be provided at the same terms with respect to availability and cost of trenching for undergrounding as is provided to other trench users, if any. (Ord. No. 14(1989), § 2(16.60250), 6-27-89) Sec. 13.12.660. Nonenforcement not a waiver. The franchisee shall not be excused from complying with any of the requirements of the ordinance by any failure of the city on any one or more occasions to insist upon or seek compliance with any such terms or conditions. (Ord. No. 14(1989), § 2(16.60.260), 6-27-89) Sec. 13.12.670. Modification and extension of term of franchise. At any time during the initial franchise term, but no later than 36 months prior to the expiration of the initial franchise term, the city and the franchisee may agree to renegotiate all or any part of the franchise. The franchisee shall submit a copy of the complaint record as identified in section 13.12.1390(d). As a result of such negotiation, the city council may grant by ordinance an extension of the franchise term for a period of up to 15 years, subject to the franchisee's agreement to comply fully with the franchise and all amendments or other mod- ifications to the franchise as may be agreed upon by the parties. The provisions of division 6 of this chapter shall not apply to this section. (Ord. No. 14(1989), § 2(16.60.270), 6.27.89) Sec. 13.12.680. Illegal tapping. It shall be unlawful for any person to make or use any unauthorized connection, whether physically, acoustically, inductively or otherwise, with any part of a cable television system for which a franchise has been issued, for the purpose of taking or receiving or enabling himself or others to receive or use any television signals, radio signals, picture, program or sound, without payment to the owner of the system. (Ord. No. 14(1989), § 2(16.60.280), 6-27-89) Sec. 13.12.690. Tampering. It shall be unlawful for any person, without the consent of the owner, to wilfully tamper with, remove, injure or vandalize any part of such a cable television system including any cables, wires or equipment used for distribution of television signals, radio signals, pictures, programs or sound. (Ord. No, 14(1989), § 2(16.60.290), 6-27-89) CD 13:117 § 13.12.700 DIAMOND BAR CODE Sec. 13.12.700. Enforcement against illegal tapping or tampering. Enforcement of sections 13.12.680 and 13.12.690 shall be according to appropriate federal, state or local law. (Ord. No. 14(1989), § 2(16.60.295), 6-27-89) Sec. 13.12.710. Severability. If any provision of the franchise or the application of the franchise to any person or circumstance is held invalid by a court of competent jurisdiction or is not in compliance with any requirement of the Public Utilities Commission of the state, the Federal Communications Commission, or any other federal or state body or agency having jurisdiction over the fran- chisee's franchise activities, the remainder of the franchise, or the application of the franchise to persons or circumstances other than those to which it is held invalid or not in such com- pliance, shall not be affected thereby. (Ord. No. 14(1989), § 2(16.60.300), 6-27-89) Secs. 13.12.720-13.12.800. Reserved. DIVISION 3. COMPENSATION TO CITY Sec. 13.12.810. Franchise fee payments to city. (a) As consideration for the franchise granted, the franchisee shall pay to the city in lawful money of the United States, during the life of the franchise, for each and every year, including the year of granting the franchise, according to the "franchise payment period" as defined in section 13.12.020, five percent of its gross revenues derived from the authorized franchise service areas, that are received by the franchisee pursuant to the definition of tiers of service as set out in section 13.12.020. (b) The franchise fee shall be computed as follows: (1) The franchisee shall pay a minimum monthly fee as provided in the ordinance granting the franchise; and (2) Annually the franchisee shall pay the percentage fee of five percent of its gross revenues less the total minimum monthly fees paid during the franchise payment period. (c) The franchisee shall make the monthly fee required in this section payable on the first day of each month during the life of the franchise. The franchisee shall make the annual percentage payment concurrently with the filing of the reports required by section 13.12.560. (d) The franchise fee payments shall be distributed by the city as follows: (1) Three percent of the gross revenues to the city; and (2) Two percent of the gross revenues shall be placed in an interest-bearing trust fund account as approved by the auditor -controller. CD13:118 UTILITIES § 13.12.840 _ (e) Commencing January 1 after the first full calendar year of operational service to subscribers, the amount of the minimum monthly fee shall be subject to an annual readjust- ment on each January 1 for the remainder of the term of the franchise. The franchisee shall recalculate the monthly fee amount to provide that the monthly fee amount shall be in an amount no less than 90 percent of the total franchise fee payment due to the city for the preceding calendar year, such 90 -percent amount to be prorated by 12 to determine the monthly fee amount to be paid during the current year. (f) The franchisee and the director may mutually agree to modify the method or amount of minimum monthly fee payments. Any such modification shall consider the annual franchise period as being based on a calendar year. (g) Any overpayment of franchise fees paid during the previous annual payment period shall be credited to future franchise fees in succeeding franchise fee payment years, and shall be deducted from the monthly fee amounts or annual percentage amounts as required by the ordinance granting the franchise. At such time as overpayment has been made, the franchisee shall notify the auditor -controller of the franchisee's intention to deduct any overpayments from the current monthly fee amounts due and indicate the scheduling of any such deductions. (h) In addition to the foregoing provisions of this section, the city reserves the right to change its fees if, after a public hearing, it determines good cause is found and such action is not in conflict with federal laws, FCC rules and regulations or the laws of the state. (Ord. No. 14(1989), § 2(16.64.010), 6-27-89) Sec. 13.12.820. Initial construction charges. In addition to the franchise fee payments of section 13.12.810, the franchisee shall pay the department of public works, within 60 days after the end of each calendar year, during the life of the franchise, an initial construction charge for all new construction during the calendar year, calculated at a rate of $100.00 per mile or fraction thereof for all lines and cables laid during the preceding franchise payment period within the authorized franchise service area. (Ord. No. 14(1989), § 2(16.64.020), 6-27-89) Sec. 13.12.830. Incorrect payments. If any amount paid is incorrect in the judgment of the auditor -controller, it may order the payment of such additional sum as it may find thereunder. (Ord. No. 14(1989), § 2(16.64.030), 6.27-89) Sec. 13.12.840. Additional charge for late payment. if the franchisee fails to make any payments for the franchise on or before the dates due as provided in this division, the franchisee shall pay as additional consideration the following amount: a sum of money equal to ten percent of the amount due. For each period of late payment of any fee extending beyond 30 days of the due date, in addition to the ten percent late payment charge, an assessment of interest shall accrue at one percent per month. The added charges for late payment shall be added to and be due and payable with the next succeeding CD 13:119 § 13.12.840 DIAMOND BAR CODE payment. The city shall not be obligated to notify the franchisee of the accumulation of late payment charges. (Ord. No. 14(1989), § 2(16.64.050), 6-27-89) Sec. 13.12.850. R.ecordkeeping requirements; examination authorized. (a) The franchisee shall keep and preserve, for a period of five years after the date of each franchise payment period, all records necessary to determine the amount of such franchise fees or other payments due under sections 13.12.810 and 13.12.820. The franchisee, upon demand by the city, shall make such records available for inspection and audit by the city or its authorized representative, within the city. (b) At all reasonable times, the franchisee shall permit the city, or its duly authorized representative, to examine all property of the franchisee erected, constructed, laid, operated or maintained pursuant to the franchise, together with any appurtenant property of the fran- chisee, and to examine, audit, and transcribe any and all books, accounts, papers, maps and other records kept or maintained by the franchisee or under its control which relate to the operations, affairs, transactions, property or financial condition of the franchisee with respect to the franchise. (Ord. No. 14(1989), § 2(16.64.060), 6-27-89) Sec. 13.12.860. Charge for underreported gross revenues. If the report of gross revenues made by the franchisee should be found to be less than the amount of gross revenues disclosed by audit and observation, the franchisee shall pay the delinquent amount and all charges required by section 13.12.840 within 30 days of billing thereof. If the additional franchise fee amount due to the city exceeds two percent of the total amount which should have been paid as determined by such review or audit, and there is no reasonable basis for the failure to report or pay thereon, the franchisee shall pay the cost of the audit. (Ord. No. 14(1989), § 2(16.64.070), 6-27-89) Sec. 13.12.870. Independent audit at the franchisee's cost. The city reserves the right for cause to require the franchisee to obtain, at the franchisee's cost, an independent audit by a certified public accountant on an annual basis, or as otherwise required by the director. The certified public accountant shall be required to certify in the audit that the franchisee is in compliance with the ordinance granting the franchise. This right shall be in addition to the city's right to conduct audits. (Ord. No. 14(1989), § 2(16.64.080), 6-27.89) Secs. 13.12.880-13.12.1000. Reserved. CD13:120 UTILITIES § 13.12.1020 DIVISION 4. CONSTRUCTION OF FACILITIES Sec. 13.12.1010. General requirements. (a) The cable television system and all franchise property and appurtenances shall be constructed and maintained in a good workmanlike manner, in conformity with the terms and conditions of the highway permit ordinance, as set forth in division 2 of chapter 12.04 or any other ordinance, rule or regulation now, or as hereafter amended, adopted or prescribed by the city, as may be applicable. All work involved in the construction, operation, maintenance, repair and removal of the system shall be performed with due diligence and using first class materials. The franchisee shall at all times comply with all current applicable laws including, but not limited to, the following: National Electrical Safety Code (National Bureau of Stan- dards); California Public Utilities Commission General Order 95 and General Order 128; electrical code; county technical standards; Standards of Good Engineering Practices for Mea- surements on Cable Television Systems (National Cable Television Association), and FCC standards. In addition, the franchisee shall meet the standards submitted by the franchisee, which shall be included in the ordinance granting the franchise. If, at any time, it is deter- mined by the city or any other agency or authority of competent jurisdiction that any part of the system, including, without limitation, any means used to distribute signals over or within the system, is harmful to the health or safety of any person, then the franchisee shall, at its own cost and expense, promptly correct all such conditions. (b) The franchisee shall not construct or install any poles, conduits or other cable televi- sion system facilities on city highways until the franchisee has secured the necessary permits from the road commissioner pursuant to division 2 of chapter 12.04. (c) The franchisee shall provide for at least a 40 -channel minimum capability, with return capability on as many channels as possible based on the configuration of the cable system, but with the requirement of a minimum of return capability on four channels. (Ord. No. 14(1989), § 2(16.66.010), 6-27-89) Sec. 13.12.1020. New installations or replacements. (a) New installations or replacements of franchise property and appurtenances and all other facilities necessary for the installation, operation, maintenance and safety of the cable television system shall be laid and maintained only pursuant to permit issued by the depart- ment of public works. All such installations or replacements shall be reviewed by the director of public works as to the most desirable location in the roads, highways or public easements of the city, and his decision shall be final and binding on the franchisee. (b) The provisions of division 2 of chapter 12.04 shall apply to all work performed in city rights-of-way and city easements in connection with the franchise. All transmission and dis- tribution lines and cables within city rights-of-way and city easements shall be laid and installed underground except where the franchisee produces written evidence of permission to utilize existing pole systems, or where the director of public works finds that the remoteness of the area or other conditions justify exceptions to the rule. The franchisee shall have the CD13:121 § 13.12.1020 DIAMOND BAR CODE right to appeal to the city council from rulings of the director of public works denying permits for overhead installations in outlying areas. (Ord. No. 14(1989), § 2(16.66.020), 6-27-89) Sec. 13.12.1030. Highway work; terms and conditions. The work of constructing, laying, replacing, maintaining, repairing, abandoning or re- moving all franchise property and appurtenances authorized under the provisions of this chapter in, over, under, along or across any highway shall be done to the satisfaction of the road commissioner at the expense of the franchisee, and in accordance with the terms and conditions of division 2 of chapter 12.04. (Ord. No. 14(1989), § 2(16.66.030), 6-27-89) Sec. 13.12.1040. Plan of service area; reports and maps. Within 60 days from the effective date of the ordinance granting the franchise, the fran- chisee shall submit to the director a plan for designated service within the authorized service area of the franchise indicating the date on which the franchisee expects the installation of the system will be completed and available for service to subscribers in the various parts of such area. The plan shall include a map which details the phases, if any, of construction. The franchisee shall furnish the director with monthly progress reports as required in subsection _ 13.12.570(c). Thereafter, the franchisee shall furnish maps indicating in detail the location of the existing construction, and planned construction, if any, within 30 days of request by the director. (Ord. No. 14(1989), § 2(16.66.040), 6-27-89) Sec. 13.12.1050. Relocation of franchise property and appurtenances. (a) The city reserves the right to change the grade, to change the width or to alter or change the location of any highway over which the franchise is granted. If any of the franchise property or appurtenances constructed, installed or maintained by the franchisee pursuant to the franchise on, along, under, over, in, upon or across any highway are located in a manner which prevents or interferes with the change of grade, traffic needs, operation, maintenance, improvement, repair, construction, reconstruction, widening, alteration or relocation of the highway, or any work or improvement upon the highway, the franchisee shall relocate per- manently or temporarily any such franchise property or appurtenances at no expense to the city or other public entity upon receipt of a written request from the road commissioner to do so, and shall commence such work on or before the date specified in such written request, which date shall be not less than 30 days from receipt of such written request. The franchisee shall thereafter diligently prosecute such work to completion; should franchisee neglect or fail to relocate its facilities in a timely manner after the receipt of any such notice, the franchisee shall be responsible for and shall reimburse the city for any and all additional costs or ex- penses incurred by the city due to or resulting from such delay in relocation of facilities; provided, however, that if such highway be subsequently constituted as a state highway, CD13:122 UTILITIES § 13.12.1060 thereafter and so long as such highway remains a state highway, no such change of location shall be required for a temporary purpose. (b) The city reserves the right for itself and other public entities which are now or may later be established, to lay, construct, repair, alter, relocate and maintain subsurface or other facilities or improvements of any type or description in a governmental but not proprietary capacity within the highways over which the franchise is granted. If the city or other public entity rinds that the location or relocation of such facilities or improvements conflicts with the franchise property or appurtenances laid, constructed or maintained under the franchise, whether such franchise property was laid, constructed or maintained before or after the facil- ities of the city or other public entity were laid, the franchisee of such franchise shall at no expense to the city or public entity, on or before the date specified in a written request from the road commissioner, which date shall not be less than 30 days after the receipt of such notice and request to do so, commence work to change the location either permanently or temporarily of all franchise property and appurtenances so conflicting with such improve- ments to a permanent or temporary location in such highways, to be approved by the road commissioner; and thereafter diligently prosecute such work to completion. Should the fran- chisee neglect or fail to relocate its facilities in a timely manner after receipt of any such. notice, the franchisee shall be responsible for and shall reimburse the city or other public entity for any and all additional costs or expenses incurred by the city or other public entity due to or resulting from such delay in relocation of facilities. If such highway be subsequently constituted a state highway, while it remains a state highway the rights of the state shall be as provided in Streets and Highways Code § 680. (Ord. No. 14(1989), § 2(16.66.060), 6-27.89) Sec. 13.12.1060. Removal or abandonment of facilities. (a) At the expiration, revocation or termination of the franchise or of the permanent discontinuance of the use of all or a portion of its franchise property, the franchisee shall, within 30 days thereafter, make written application to the road commissioner for authority either to abandon all or a portion of such franchise property in place; or to remove all or a portion of such franchise property. Such application shall describe the franchise property desired to be abandoned and its location with reference to county highways, and shall describe with reasonable accuracy the physical condition of such franchise property. The road commis- sioner shall determine whether any abandonment or removal which is thereby proposed may be effected without detriment to the public interest and under what conditions such proposed abandonment or removal may be effected. He shall then notify the franchisee of his determi- nations. (b) Within 30 days after receipt of such notice, the franchisee shall apply for a permit from the department of public works to abandon or remove franchise property. (c) The franchisee shall, within 60 days after obtaining such permit, commence and dil- igently prosecute to completion the work authorized by the permit. (Ord. No. 14(1989), § 2(16.66.070), 6-27-89) CD13:123 § 13.12.1070 DIAMOND BAR CODE Sec. 13.12.1070. Failure to remove facilities; city may perform work; costs. (a) If any facilities to be abandoned in place subject to prescribed conditions shall not be abandoned in accordance with all such conditions, the road commissioner may make addi- tional appropriate orders, including an order that the franchisee shall remove any or all such facilities. The franchisee shall comply with such additional orders. (b) If the franchisee fails to comply with the terms and conditions of abandonment or removal as may be required by this division, and within such time as may be prescribed by the road commissioner, then the city may remove, or cause to be removed, such facilities at the franchisee's expense. The franchisee shall pay to the city the cost of such work plus the current rate of overhead being charged by the city for reimbursable work. (c) If at the expiration, revocation or termination of the franchise, or of the permanent discontinuance of the use of all or a portion of its franchise property, the franchisee, within 30 days thereafter, fails or refuses to make written application for the abovementioned authority, the road commissioner shall make the determination as to whether the franchise property shall be abandoned in place or removed. The road commissioner shall then notify the fran- chisee of his determinations. The franchisee shall thereafter comply with the provisions of subsections 13.12.1060(b) and (c). (Ord. No. 14(1989), § 2(16.66.080), 6-27-89) Secs. 13.12.1080-13.12.1200. Reserved. DIVISION 5. SERVICE, RATES AND CONSUMER PROTECTION* Sec. 13.12.1210. Establishment and furnishing of service; procedures and costs. (a) The franchisee shall, within one year after acceptance of franchise, obtain all neces• sary permits, certifications and authorizations as may be required in the conduct of its busi- ness. The franchisee shall notify the director when all such permits, authorizations and cer- tifications have been obtained. Should the franchisee be unable to comply with the requirements of this subsection within the time specified in this section, the franchise granted by this chapter shall become null and void, and the franchisee shall have no rights thereunder; provided, however, that the city may, for good cause shown by the franchisee, grant extensions of time to comply with this requirement. (b) Within 90 days after obtaining the necessary permits, certifications and authoriza- tions, the franchisee shall commence construction and installation of the cable television system. The franchisee shall notify the director, in writing, within ten days thereof of the date of commencement of construction and installation work. (c) The franchisee shall extend and complete the cable television system throughout the designated service area with reasonable diligence. Within two years after complying with the requirements of subsection (a) of this section, the franchisee shall be capable of providing basic *Cross reference—Revenue and Finance, tit. 3. CD 13:124 UTILITIES § 13.12.12 10 service to every residence within the franchise service area notwithstanding the provisions of subsection (d) of this section; provided, however, that the director may, for good cause shown by the franchisee, grant extensions of time to comply with this requirement. (d) Upon a reasonable request for basic service to any residence within the franchisee's service area, the franchisee shall promptly furnish the requested service to such residence; service shall be provided to a residence passed by franchisee's cable plant within 30 days of request for service. Notwithstanding the above, if the franchisee can show that permits or other authorizations must be obtained or that the provision of such service is impractical, technically unfeasible, economically noncompensatory or will impose an undue hardship, the director may waive or defer the franchisee's obligation to provide service to such residence. (e) For purposes of determining compliance with the provisions of this section, and to provide for a reasonable and nondiscriminatory policy governing provision of cable service to franchise service areas within the city, the franchisee shall provide service to new subscribers at the normal installation charge and monthly rate for customers of that classification under the following terms and conditions: (1) Where the new subscriber, or nearest subscriber of a group of new subscribers, is located within 100 feet of existing aerial or underground trunk or distribution feeder cable; and (2) Where the number of homes to be passed by such new extension cable plant bears the same or proportional ratio to the total amount of new cable plant as the average number of homes passed per mile of existing cable plant; or in the alternative, the ordinance granting the franchise may specify the number of homes to be passed per mile, for aerial and underground construction, which shall require mandatory provi- sion of service. (f) If the requirements of subsection (e) of this section are not met, the franchisee shall provide service to new subscribers at the'normal monthly rate for customers of that classifi- cation and the installation cost per subscriber shall be determined as follows: (1) Within ten days of request from a potential subscriber, the franchisee shall provide a written cost estimate to potential subscribers whose residence or commercial place of business is located in excess of 100 feet from the closest trunk or feeder cable. This estimate is to indicate the franchisee's cost for labor and material plus ten percent for overhead costs for excessive footage from energized trunk source and/or concealed wiring and/or nonstandard underground drops. In addition, the estimate may include the costs of use of utility poles for aerial cable, if applicable. CD13:125 § 13.12.1210 DIAMOND BAR CODE (2) If there are less than the average number of homes per mile to be passed by cable than are at present in the total plant, cable service will be supplied at a cost based on the following formula for both aerial and underground construction: a. *Cost per mile to construct based on average = Franchisee's average homes per mile in plant for overhead or under- cost ground as may be applicable b. Cost per mile to construct to subscribers re- = Cost per subscriber questing service c. Cost per subscriber less franchisee's average cost = Subscriber's share *The expression "cost per mile to construct" means the turnkey price as supplied by the cable manufacturer of the newest version of their equipment presently being used by the franchisee in the system. Such cost to construct will include the house drops. (g) The franchisee shall not be responsible for providing service in those areas meeting the density requirements in this section or in the ordinance granting the franchise if the franchisee is precluded by the property owner, instrument of record, or contract from providing cable services or constructing and installing facilities and equipment. (Ord. No. 14(1989), § 2(16.68.010), 6-27-89) Sec. 13.12.1220. Notices of construction or reconstruction. (a) Prior to the commencement of and during construction or reconstruction of the system, the franchisee shall be required to notify all residents and property owners, at the franchisee's expense, of the intended construction or reconstruction. All notices shall be personal or in writing, and shall be issued as follows: (1) At least 45 days prior to the intended construction or reconstruction, a general notice indicating the type of construction, projected construction schedule and proposed construction areas. (2) The franchisee shall provide notice at least 20 days prior to entering private property or public ways or public easements adjacent to or on such private property. a. Should there be aboveground or underground installations, excluding aerial cable lines utilizing existing poles and existing cable paths, which will affect the prop- erty, such notice shall be in writing and shall contain specific information re- garding any aboveground or underground installations, excluding aerial cable lines utilizing existing poles and existing cable paths, which shall affect the property. b. Should the property owner or resident notify the franchisee of his objection to placement of any such aboveground or underground installations, excluding aerial cable lines utilizing existing poles and existing cable paths, the franchisee shall CD13:126 UTILITIES § 13.12.1260 make a good faith effort to comply with the property owner/resident's prefer- ences, if any, on location of placement of the appurtenances, consistent with sound engineering practices. (3) The franchisee shall provide notice three days in advance of entering private property or public ways or public easements adjacent to or on such private property. (b) In addition to any other notice of proposed entry required under this chapter, the franchisee's personnel shall make a reasonable attempt to give personal notice to resident immediately preceding entry on private property or public ways or public easements adjacent to or on such private property. (Ord. No. 14(1989), § 2(16.68.015), 6.27-89) Sec. 13.12.1230. Identification required. The franchisee, its employees, agents, contractors and subcontractors shall be properly identified prior to and during entry on private and public property. Identification shall include the name and telephone number of the franchisee on all trucks and vehicles used by instal- lation personnel. (Ord. No. 14(1989), § 2(16.68.017), 6-27-89) Sec. 13.12.1240. Restoration of private and public property. After performance of any work, the franchisee shall restore the private and public prop- erty as nearly as possible to its condition prior to construction. Any disturbance of landscaping, fencing or other improvements upon private or public property shall, at the sole expense of the franchisee, be promptly repaired or restored, including replacement of such valuables as shrubbery and fencing, to the reasonable satisfaction of the property owner. (Ord. No. 14(1989), § 2(16.68.018), 6-27-89) Sec. 13.12.1250. Service to public facilities. The franchisee shall, upon written request from the city, provide and maintain, at no cost to city, at least one cable television drop and free basic service to each city facility, whether an owned or a leased facility, law enforcement facility, fire station, public school or other public facility located within the authorized franchise service area. (Ord. No. 14(1989), § 2(16.68.020), 6-27-89) Sec. 13.12.1260. Service to private nonprofit schools. (a) The franchisee shall provide and maintain, at no cost to the city or school, at least one cable television drop and free basic service to each private, nonprofit school site within the authorized franchise service area. (b) As used in this section, the expression "private, nonprofit schools" means schools that satisfy the requirements of Education Code § 12154, and which are exempt from taxation under Revenue and Taxation Code § 214. (Ord. No. 14(1989), § 2(16.68.030), 6-27-89) CD 13:127 § 13.12.1270 DIAMOND BAR CODE Sec. 13.12.1270. Emergency override. A franchisee shall incorporate into its cable television system the capability to permit the city in times of emergency to override the audio portion of -all channels simultaneously. In addition, if feasible, the franchisee may be required to designate a channel, which may be a PEG channel, to be used for emergency broadcasts of both audio and video. The franchisee shall cooperate with the city in the use and operation of the emergency alert override system. (Ord. No. 14(1989), § 2(16.68.035), 6-27-89) Sec. 13.12.1280. Interconnection with other systems. (a) The city reserves the right to require the franchisee to interconnect its cable television system with any other cable television system operating within the city. For good cause shown, the city may waive or defer this requirement to interconnect, or grant reasonable extensions of time to comply with this requirement. (b) For the purpose of this section, the word "interconnection" shall be defined as recep. tion of or connection to those electronic signals which are delivered to the franchised cable television system by any foreign source for distribution via the cable television system. Such electronic signals shall be in a format acceptable within the state-of-the-art technology for unattended processing into radio frequency energy for retransmission into the cable television system. (Ord. No. 14(1989), § 2(16.68.040), 6-27-89) Sec. 13.12.1290. Signal quality responsibility. The franchisee shall retain full responsibility for the quality of cable television service to all recipients of redistributed service i.e., through microwave, master antennae or satellite redistribution. The franchisee shall be presumed to have retained such responsibility together with all obligations arising from the franchise, including, but not limited to, charges to the ultimate recipient for service. (Ord. No. 14(1989), § 2(16.68.050), 6-27-89) Sec. 13.12.1300. Compliance with FCC Rules and Regulations. (a) A franchisee shall at all times comply with the rules and regulations governing com- munity antenna television system (CATV) operations promulgated by the FCC, specifically, but not limited to, those set out in part 76 of the FCC Rules and Regulations. This shall particularly include adherence by the franchisee to FCC Rules and Regulations. This shall particularly include adherence by the franchisee to FCC rules regarding technical and engi- neering specifications involved in the construction of the CATV system, and signal carriage therein. (b) Any modifications of section 76.31 of the FCC Rules and Regulations resulting from amendment thereto by the FCC shall, to the extent applicable, be considered as a part of the franchise as of the effective date of the amendment. (Ord. No. 14(1989), § 2(16.68.060), 6-27-89) CD13:128 UTILITIES § 13.12.1320 Sec. 13.12.1310. Exclusive city use channel. A franchisee shall dedicate one channel for exclusive use by the city. The franchisee may utilize the exclusive city use channel until such time as the director provides the franchisee with 60 days' prior written notification of intention to use the channel; provided, however, that prior to any such use by franchisee, the franchisee shall give 60 days' prior written notice by certified mail to the director of such use. (Ord. No. 14(1989), § 2(16.68.070), 6-27-89) Sec. 13.12.1320. Public, educational and governmental use (PEG) channels. (a) In addition to the exclusive city use channel, as provided for in section 13.12.1310, a franchisee shall dedicate a minimum of six channels for public, educational and governmental uses. Use of each type of such channels shall be in accordance with city policies and procedures. The city reserves the right to change, delete or amend such policies and procedures during the term of the franchise. (b) If less than six PEG channels are to be activated initially, activation of channels beyond those required for initial activation shall be according to a formula which shall be expressed in the ordinance granting the franchise. (c) Channels activated for public or educational access uses shall contain daily notice of the name, address and telephone number of the party to contact for information regarding access uses, and advisement that other channels, if any, are available for PEG uses. The - language of the notices shall be approved by the director, prior to carriage, and the notices shall be provided on a scheduled basis as determined by the director. In addition, if not all PEG channels are activated and utilized for PEG uses, the franchisee shall issue periodic written notice, at least once a year, to subscribers informing them that additional channels are ded- icated for public, educational and governmental uses and are temporarily being used for other programming purposes until needed for community and governmental uses. Information shall also be provided regarding whom to contact regarding PEG uses. (d) The franchisee may utilize PEG channels dedicated for, but not yet utilized for, PEG uses, for programming of their choice until such time as utilized for PEG uses; provided, however, that prior to the franchisee's use of any such PEG channels, the franchisee give 60 days' written notice by certified mail to the director of such use. The director shall give franchisee 60 days' prior written notice of intention to use such channels for PEG uses; provided, further, however, that should the franchisee utilize such channels with program- ming which provides for local ad -avails, the franchisee shall be required to provide PEG informational notices as required in subsection (c) of this section on any such channel. (e) Underutilized PEG channels activated for PEG uses may also be utilized by the fran- chisee for compatible type programming, subject to rules and procedures established and as may be modified by the city throughout the term of the franchise. (f) The franchisee shall not be permitted to use a dedicated PEG channel if other channel capacity on the system has not been programmed. CD 13:129 § 13.12.1320 DIAMOND BAR CODE (g) The director may, for good cause shown by the franchisee, waive or modify the re- quirements of this section. (Ord. No. 14(1989), § 2(16.68.080), 6-27-89) Sec. 13.12.1330. PEG provisions; not fee or payments in kind. The franchisee shall agree that the provision of PEG channels, free cable drop and free basic service, as specified in sections 13.12.1250, 13.12.1260, 13.12.1310 and 13.12.1320, shall not be considered as within the meaning of the terms "franchise fee" or "payments in kind" as used in section 622(g) of the Cable Act. (Ord. No. 14(1989), § 2(16.68.085), 6-27-89) Sec. 13.12.1340. Return capability for exclusive city use channel and PEG channels. When required by the director, the franchisee shall provide return capability channels for use in connection with the exclusive city use channel and/or PEG channels. Such return capability may be provided on PEG channels. (Ord. No. 14(1989), § 2(16.68.090), 6-27-89) Sec. 13.12.1350. Leased access channels. A franchisee shall provide leased access channels as required pursuant to section 612 of the Cable Act. Total system capacity shall be calculated inclusive of PEG channels. The franchisee shall submit information regarding leased access channel rates to the city when requested. Leased access channel rates shall be available for public inspection. (Ord. No. 14(1989), § 2(16.68.095), 6-27.89) Sec. 13.12.1360. Local public broadcasting channel requirements. To the extent authorized by law, every franchisee shall carry a public broadcast station on a cable channel within channels 2 through 13, inclusive, or on its current broadcast channel identification number, or on a cable channel number as otherwise agreed to by the director and the franchisee. The franchisee may not change the cable channel placement of the public broadcast station without the director's written approval. This requirement shall apply to all franchises granted, renewed, assigned or modified after the effective date of County Ordinance No. 88-0192. (Ord. No. 14(1989), § 2(16.68.097), 6-27-89) Sec. 13.12.1370. Standards for service; minimum requirements. (a) A franchisee shall construct a cable television system with a capability of delivering not less than 40 video channels with associated audio, with a technical capability for two-way operational communication with audio -video return on a minimum of four channels, to resi. dential subscribers. The director may, for good cause shown by the franchisee, waive or modify the requirements of this subsection. CD13:130 UTILITIES § 13.12.1370 (b) The city may require the franchisee to deliver to subscriber terminals those television broadcasts and cablecast signals which are now or hereafter authorized for carriage by the FCC. The signals produced by the system shall be of high quality throughout the system with no difference perceptible to viewers whether in close proximity to the headend or at the furthest extension of the trunk line. (c) The franchisee shall distribute in color those television signals which it receives in color. The system, as installed, shall be capable of passing standard black and white and color video channels with associated audio signals without material degradation and with no phase shift and no effect on color fidelity and intelligence. (d) A franchisee shall render such service to subscriber as will meet technical and per- formance requirements of the franchise. At a minimum, the franchisee shall provide the broad categories of services and mix, quality, and level of programming represented to the city in the application and made a part of the franchise agreement by attached exhibit. As an aid to the city in monitoring signal strength and quality, a franchisee shall provide the city with copies of all FCC signal performance reports. Should the FCC no longer require signal performance reports, the franchisee shall make and submit such performance tests and reports in response to written request by the city. Any time the signal does not meet FCC standards or the standards of the franchisee's application as incorporated in the ordinance granting the fran- chise, the franchisee shall make a pro rata rebate, in money or in services, to each subscriber based upon the percentage by which the signal falls below standard and upon the length of time that such condition has existed. Such rebate shall be made to the satisfaction of each subscriber, or of the city if agreement with the subscriber cannot be reached. The director may for good cause shown by the franchisee waive or modify the requirements of this subsection. (e) The franchisee shall provide program origination if so required by the FCC or the ordinance granting the franchise. (f) The franchisee shall render efficient service, making repairs promptly and inter- rupting service only for good cause and for the shortest possible time; any scheduled inter- ruptions, insofar as possible, shall be preceded by notice given to subscribers at least 24 hours in advance and shall occur during periods of minimum use of the system. (g) The franchisee must retain and have available emergency personnel capable of per- forming emergency repairs and maintenance 24 hours a day, every day, including weekends and holidays. The director may waive or modify this requirement if the franchisee can dem- onstrate that it is not economically feasible to provide such emergency personnel. (h) The franchisee shall promptly notify the cable television section of the department when the cable television system is down, when the system is having technical difficulties which may affect services to the subscriber, or when the franchisee's telephone lines are out of service, in order that the department is able to advise those subscribers who contact the department due to inability to reach the cable operator. In addition, the franchisee shall advise the cable television section of the department, by telephone and in writing, of all scheduled CD13:131 § 13.12.1370 DIAMOND BAR CODE maintenance which will cause disruptions to service, and of any outages of more than four hours duration. (i) Credits shall automatically be given on a pro rata basis to any subscribers affected by interruptions of service for more than two hours due to actions or outages under the control of the franchisee, exclusive of scheduled repairs or maintenance that the franchisee has provided advance notice of to subscribers. For such interruptions of service not under the control of the franchisee, credits shall be given on a pro rata basis upon the request of the subscribers. 6) The franchisee shall maintain and upgrade the system and services to reflect feasible technical and economic developments occurring during the term of the franchise which will benefit the public in terms of new and more effective and efficient service and to provide a state-of-the-art cable television system which meets the interests and needs of the community during the term of the franchise. (k) The franchisee shall provide and maintain continuous service to subscribers unless allowed otherwise by the FCC. The franchisee may petition the FCC to authorize the suspen- sion or abandonment of service upon such reasonable terms and conditions as may be pre- scribed by the FCC. A copy of any such petition shall be filed with the city engineer concur- rently with the filing of the petition with the FCC. (1) Upon the request of a subscriber or potential subscriber, the franchisee shall provide a morning (before 12:00 noon) or afternoon (after 12:00 noon) service call or installation appointment. Should the franchisee be unable to keep the appointment, the subscriber shall be notified at the earliest possible opportunity, and shall be rescheduled on a priority basis. (Ord. No. 14(1989), § 2(16.68.100), 6-27-89) Sec. 13.12.1380. Installation; technical documentation. A franchisee shall provide the director with complete technical documentation of the cable television system as installed. Such documentation shall include, but is not limited to, headend equipment and location, satellite location and technical parameters, and the backbone cable routing, but need not include each subscriber drop. Such documentation shall be sent to the director within 60 days of initiation of subscriber service and shall be updated as necessary. (Ord. No. 14(1989), § 2(16.68.110), 6-27-89) Sec. 13.12.1390. Subscriber complaints; investigation, resolution and recordkeeping. (a) Response to subscriber complaints shall be initiated within one business day of receipt, and the resolution of subscriber complaints shall be effected by the franchisee not later than three business days after receipt of the complaint. Should a supervisor not be available when requested by a subscriber, a supervisor shall return the subscriber's telephone call at the earliest possible time and, in no event, later than the end of the next business day. If a subscriber has notified the franchisee in writing that a bill is in dispute, the franchisee shall not terminate service pending resolution of the dispute, nor shall the account be turned over or reported to a collection agency, provided that the remaining balance of the bill is current. A bill shall not be considered to be in dispute solely by reason of nonpayment by subscriber. CD 13:132 liTILITIES § 13.12.1400 (b) Upon complaint by any subscriber, the franchisee shall have the burden to satisfy the director that a signal is being delivered which is of sufficient strength and quality to meet standards contained in the FCC rules and regulations, as well as the city standards in effect during the term of the franchise. (c) The franchisee shall maintain a written complaint record containing the following information: (1) Date and time of subscriber complaint; (2) Identification of the complainant by name, address and telephone number; (3) Description of the nature of the complaint; and (4) A record of when and what action was taken by the franchisee to resolve the com- plaint. (d) The complaint record shall be kept at the franchisee's local office for a period of two years after receipt of any such complaint. A copy of the complaint record shall be submitted by the franchisee to the director upon the franchisee's application for extension of service areas, modification, transfer or renewal of the franchise and within ten days following receipt of a written request therefor from the director. If required by the director, the complaint record shall contain a semiannual (through June 30 and through December 31) breakdown indicating the total number of complaints received for the preceding reporting period, and shall indicate the major classifications of complaints as follows: construction, billing, customer relations/ service, miscellaneous. (e) Throughout the term of the franchise, the franchisee shall maintain an outage log showing the date, approximate time and duration, type and probable cause of all head -end, trunk or distribution line service failures. The log shall also include information relating to routine testing or scheduled maintenance outages. A copy of the outage log shall be submitted by the franchisee to the city within ten days following the receipt of a written request therefor from the city. (Ord. No. 14(1989), § 2(16.68.120), 6-27-89) Sec. 13.12.1400. Special tests and reports. When complaints have been made, evidence indicates an unresolved controversy or sig- nificant noncompliance with franchise standards, or when circumstances exist which, in the judgment of the director, cast doubts upon the reliability or quality of cable service, the director may require a franchisee, at the franchisee's cost, to test, analyze and provide a written report on the performance of the system. Such report shall be delivered to the director, no later than 14 days after the franchisee is notified, in writing, of the required report and shall include the following information: nature of the complaints which precipitated the spe- cial tests; what system component was tested, the equipment used, and procedures employed in the testing, the results of such test; and the method in which the complaints were resolved. The director may require that tests and analyses are supervised by an independent profes- CD13:133 § 13.12.1400 DIAMOND BAR CODE sional engineer acceptable to the city. The tests shall be forwarded to the director with a report interpreting the results of the tests and recommending actions to be taken. (Ord. No. 14(1989), § 2(16.68.122), 6-27.89) Sec. 13.12.1410. Subscriber terminal test requests. A franchisee shall, upon reasonable request or complaint by a subscriber, perform such tests as necessary at the subscriber's terminal to establish whether a signal of requisite quality is being delivered to the subscriber's premises. The results of such test shall be given to the subscriber as soon as the test is completed and evaluated, and in no event later than ten days after the test is conducted. (Ord. No. 14(1989), § 2(16.68.124), 6-27-89) Sec. 13.12.1420. Periodic review of system quality. The director shall have the right to conduct periodic reviews of the performance and quality of the system during the term of the franchise. The record of subscriber complaints, the record of performance tests and other tests or surveys conducted shall be included in the review. (Ord. No. 14(1989), § 2(16.68.126), 6-27-89) Sec. 13.12.1430. Notice and information to subscribers. (a) Prior to or at the time of installation, the franchisee shall provide each new subscriber with written information regarding: (1) A listing of all services, packages and rates available at the time, including billing options and dispute procedures, refund procedures, and company policies regarding disconnection and reconnection services and charges. If the franchisee has elected to utilize line item charges for franchise fees, copyright and other fees as permitted under section 634 of the Cable Act, any such listings, whether written or oral, shall disclose to the prospective subscriber the total costs associated with receiving cable services. Prior to the issuance of any such notices, a copy shall be submitted to the director for review and approval of the notices. (2) The availability of any devices required by federal, state or local law, such as, but not limited to, parental lock box device and a switching device WB switch), and any fees or charges associated with receiving the devices. (3) The address, telephone number and hours of business of the franchisee's local office for service and resolution of complaints for the franchise area. (4) Identification of the department, including address and telephone number, as the referral agency, in a form of language to be provided by the director. (5) A separate, written notice containing information regarding protection of subscriber privacy rights as specified under section 631 of .the Cable Act. Such notice to sub- CD13:134 UTILITIES § 13.12.1440 scribers regarding protection of privacy rights shall be issued in a separate, written notice at least once a year thereafter. (6) Other appropriate information regarding the franchisee's system, as required by the city. (b) A franchisee shall also provide a separate, written notice to all subscribers every six months or as required by the director, which identifies the department as required in subsec- tion (a)(4) of this section. Semiannually, the director shall provide the language of the notice to be issued to new and current subscribers. Failure to circulate the notice every six months as required in this subsection shall result in the franchisee being assessed a fine of $1.00 per subscriber, per month, until such time as notification is made to subscribers as required. (c) The notices required in subsections (a)(5) and (b) of this section may be included in the mailing of the subscriber's billing statement, but shall not be accompanied by any promotional materials. The franchisee shall place the department (attn: Cable TV Franchising Section) on a mailing list for the notices required in subsections (a)(5) and (b) of this section. (Ord. No. 14(1989), § 2(16.68.130), 6-27-89) Sec. 13.12.1440. Local business office requirements. (a) A franchisee shall maintain a local business office within the city and provide the director with the name, address and telephone number of the persons who will act as the franchisee's agents for general management of the system and to receive complaints regarding quality of service, equipment malfunctions, and similar matters. The franchisee shall advise the city of a change of franchisee's agents within five working days of any such change. The local office shall be open to receive inquiries or complaints from subscribers during normal business hours. A toll-free phone number shall be available to all subscribers located within the franchised area for the reporting of service problems on a 24 hours per day, seven days per week, 365 days per year basis. (b) The franchisee shall provide sufficient telephone lines, either adequately staffed or with answering capability, providing, at the minimum, emergency referral information. The franchisee shall return calls for services or complaints received during normal business hours within four business hours of receipt, and shall promptly investigate and resolve all calls for service and complaints. During periods when answering service or machine is used, the fran- chisee shall provide on-call personnel who shall contact the answering service/machine, at a minimum, every four hours to check on requests for service and complaints. (c) In order to determine whether sufficient telephone lines are provided, the director may require that a busy study, traffic study or other study be conducted, at the franchisee's ex- pense, if any, by the local telephone company.. Should the franchisee have its own telephone equipment which can report on telephone line usage, the franchisee may submit such report from its own system. (d) Should the director determine that insufficient telephone lines or inadequate staff exists, the franchisee shall take necessary steps to ensure that adequate telephone lines or CD13:135 § 13.12.1440 DIAMOND BAR CODE stalling are available for normal, daily activities. Consideration shall be given for periods of promotional activities or outages. The monthly billing period shall be considered as a normal, daily activity for purposes of determining adequate telephone lines and/or staffing. (Ord. No. 14(1989), § 2(16.68.140), 6-27-89) Sec. 13.12.1450. Rates and rate changes. (a) Except to the extent preempted by federal or state laws and regulations, the proce- dures and standards set forth in this section shall prevail except as modified by the ordinance granting the franchise. (1) For new and newly renewed franchises, during the first year of operational service offered to subscribers, the franchisee shall charge a subscriber no more for its services than the rates and charges initially approved by the city council when granting the franchise. The franchisee shall not change rates or charges unless such changes are approved or authorized in the manner provided in this section. (2) For existing franchises and after the first year of operative service to subscribers, for new and newly renewed franchises, the franchisee shall notify the director of any proposed change in rates or charges. The notification shall include a written list showing the rates and charges currently in effect and the proposed changes. The notice shall also include the justification for the proposed change. Within 30 days after submission of the franchisee's proposed changes, the director, in his sole discre- tion, shall either approve or disapprove of the proposed changes, or any of them, and shall notify the franchisee of his decision. To the extent that any proposed change is disapproved, the director shall set forth in writing his findings of fact with respect thereto. The franchisee shall not take any action to change rates or charges until authorized to do so by the director, or as a result of an appeal taken as indicated in this section. (b) The franchisee may, within ten days after mailing of the notification of decision, appeal such decision to the city council. Upon receipt of the appeal, the city council may take any one of the following actions: (1) Approve the decision; (2) Refer the matter back to the director with or without instruction; or (3) Set the matter for public hearing before itself; such public hearing shall be held de novo as if no hearing previously had been held. (Ord. No. 14(1989), § 2(16.68.150), 6-27-89) Sec. 13.12.1460. Notice to subscribers of discontinuance of service for nonpayment. The franchisee shall provide at least ten days' written notice to a subscriber prior to discontinuance of service for nonpayment. The notice shall contain the date, time and place by which payment must he made in order to prevent disconnection of service. (Ord. No. 14(1989), § 2(16.68.160), 6-27.89) CD13:136 UTILITIES § 13.12.1490 Sec. 13.12.1470. Restoration of service disconnected in error; no charge to subscriber. If the franchisee has improperly or inadvertently disconnected cable services to a sub- scriber, the franchisee shall provide for restoration without charge to subscriber within two business days of discovery of disconnection. (Ord. No. 14(1989), § 2(16.68.165), 6.27.89) Sec. 13.12.1480. Designation of franchisee fees and other line items on subscribers' statements; required notices. The franchisee shall notify subscribers at least 30 days prior to the first inclusion of franchise fees and/or other line items on their statements, as permitted in sectiop 622(f) and (g) of the Cable Act. Such notice shall explain the election to use line item designations and the effects such designations shall have on the total costs associated with receiving cable services. No such notice shall be issued to subscribers until the city has reviewed and approved the notice. Any designation of franchise fees as a separate line item on the statement shall use the term "franchise fee." (Ord. No. 14(1989), § 2(16.68.170), 6-27-89) Sec. 13.12.1490. Requirements of notice of proposed changes in rates, charges, tiering or carriage. Whether or not the franchise is subject to rate regulation by the city, the franchisee shall provide notice to subscribers and the city of changes in rates, charges, tiering or carriage as provided in this section: (1) The franchisee shall notify all subscribers, in writing, of any proposed changes in subscriber rates, charges, tiering or carriage at least 60 days in advance of the effec- tive date of such proposed changes. In no event shall a subscriber be billed for service at the increased rate or charge prior to the delivery of the notification to the sub- scriber. (2) The franchisee shall notify the director, in writing, of any proposed changes in sub- scriber rates and charges, tiering or carriage at least 90 days in advance of the effective date of such proposed changes. The notification to the director shall include a list showing the rates and charges currently in effect and the proposed changes. Only those rates and charges that are on file with the department may be charged to subscribers. (3) If it is impractical or impossible for a franchisee to provide such notifications due to conditions beyond the franchisee's control, the franchisee shall give reasonable notice to the subscribers and the director. (4) In the event of a rate increase, retiering or other changes in service by a franchisee, subscribers may downgrade or disconnect service without charge; provided, however, CD13:137 § 13.12.1490 DIAMOND BAR CODE that charges may be imposed for failure to return converter boxes, remote controls or other equipment owned by the franchisee. (Ord. No. 14(1989), § 2(16.68.180), 6.27-89) Sec. 13.12.1500. Termination of service; removal of equipment. (a) Upon termination of service to any subscriber, the franchisee shall promptly remove all its facilities and equipment from the premises of such subscriber upon subscriber's request, except as provided in subsection (b) of this section. Upon termination of services, should the franchisee not promptly collect its equipment from the premises of the subscriber, the sub- scriber shall not be charged for continued services, nor for failure to return any equipment. (b) Should a franchisee require the subscriber to return the equipment, the franchisee shall establish convenient hours, which must include convenient evening and weekend hours, for the return of equipment, and the subscriber shall have a reasonable length of time in which to return the equipment. The subscriber shall be advised of the date by which the equipment must be returned before a charge may be imposed for failure to return equipment. (Ord. No. 14(1989), § 2(16.68.185), 6-27-89) Sec. 13.12.1510. Preference to certain subscribers. A franchisee shall not grant any preference or advantage to any person or group, nor subject any person or group to prejudice or disadvantage as to rates, charges, services, service facilities, rules and regulations or in any other respect relative to the rights granted under the franchise. Nothing in this section shall prohibit the franchisee from offering limited, promo- tional specials, nor from offering bulk or discount billings where practical. (Ord. No. 14(1989), § 2(16.68.190), 6-27-89) Sec. 13.12.1520. Subscriber right to continuation of services. Provided the subscriber does not violate any federal, state or local laws regarding the reception of cable services, makes payments for such services in a timely fashion to the franchisee, and maintains the franchisee's equipment in good working order, the franchisee may not refuse cable service to a subscriber. (Ord. No. 14(1989), § 2(16.68.192), 6-27.89) Sec. 13.12.1530. Modification of standards. The city reserves the right to modify, during the term of the franchise, the existing consumer standards contained within the ordinance granting the franchise, and to establish additional consumer service standards from time to time, as may be necessary to protect the subscriber, the franchisee and the city. (Ord. No. 14(1989), § 2(16.68.195), 6.27-89) Secs. 13.12.1540-13.12.1700. Reserved. CD13:138 UTILITIES § 13.12.1720 DIVISION 6. RENEWAL Sec. 13.12.1710. Methods. A franchise renewal may be effected under section 626 of the Cable Act, or under an alternative method. (Ord. No. 14(1989), § 2(16.69.010), 6-27-89) Sec. 13.12.1720. Cable Act section 626. The following procedure shall be followed for all renewals effected under section 626 of the Cable Act: (1) During the six-month period which begins with the 36th month before the franchise expiration, the city may, on its own initiative, and shall at the request of the fran- chisee, commence proceedings which afford the public in the franchise area appro- priate notice and participation for the purpose of: a. Identifying the future cable -related community needs and interests; and b. Reviewing the performance of the franchisee under the franchise during the then current franchise term. (2) Upon completion of a proceeding under subsection (1) of this section, the franchisee seeking renewal of a franchise may, on its own initiative or at the request of the director, submit a proposal for renewal. Subject to section 624 of the Cable Act, any such proposal shall contain such material as the director may require, including proposals to upgrade the cable system. The director may establish a date by which such proposal shall be submitted. (3) Upon submittal by the franchisee of a proposal for the renewal of a franchise, the city shall provide prompt public notice of such proposal and, during the four-month period which begins on the completion of any proceedings under subsection (1) of this section, renew the franchise or issue a preliminary assessment that the franchise should not be renewed and, at the request of the franchisee or on its own initiative, commence an administrative proceeding, after providing prompt public notice of such proceeding, in accordance with this subsection to consider whether: a. The franchisee has substantially complied with the material terms of the existing franchise and with applicable law. b. The quality of the franchisee's service, including signal quality, response to con- sumer complaints, and billing practices, but without regard to the mix, quality, or level of cable services or other services provided over the system, has been reasonable in light of community needs. c. The franchisee has the financial, legal and technical ability to provide the ser- vices, facilities and equipment as set forth in the franchisee's proposal. CD 13:139 § 13.12.1720 DIAMOND BAR CODE d. The franchisee's proposal is reasonable to meet the future cable -related commu- nity needs and interests, taking into account the cost of meeting such needs and interests. In any proceeding under subsection (3) of this section, the franchisee shall be afforded adequate notice, and the franchisee and the director shall be afforded fair opportunity for full participation, including the right to introduce evidence, including evidence related to issues raised in the proceeding under subsection (1) of this section, to require the production of evidence, and to question witnesses. A transcript shall be made of any such proceeding. At the completion of a proceeding under this subsection, the director shall issue a written decision granting or denying the proposal for re- newal based upon the record of such proceeding, and transmit a copy of such decision to the franchisee. Such decision shall state the reasons therefor. (4) Any denial of a proposal for renewal shall be based on one or more adverse findings made with respect to the factors described in subsection (3)a—(3)d of this section, pursuant to the record of the proceeding under subsection (3)c of this section. The city will not base a denial of renewal on a failure to substantially comply with the mate- rial terms of the franchise under subsection (3)a of this section or on events considered under subsection (3)b of this section in any case in which a violation of the franchise or the events considered under subsection (3)b of this section occur after December 29, 1984, unless the director has provided the franchisee with notice and the opportunity to cure, or in any case in which it is documented that the city has waived its right to object or has effectively acquiesced. (5) Any franchisee whose proposal for renewal has been denied by a final decision of the director made pursuant to this section, or has been adversely affected by a failure of the city to act in accordance with the procedural requirements of this section, may appeal such final decision or failure pursuant to the provisions of section 635 of the Cable Act. (6) For purposes of this section, the term "franchise expiration" means the date of the expiration of the term of the franchise, as provided under the ordinance granting the franchise, as it was in effect on December 29, 1984. (Ord. No. 14(1989), § 2(16.69.020), 6-27-89) Sec. 13.12.1730. Renewals outside provisions of Cable Act section 626(x) through (g). (a) Notwithstanding the provisions of section 13.12.1720, a franchisee may submit a proposal for the renewal of a franchise pursuant to this section at any time, and the city may, after affording the public adequate notice and opportunity for comment, grant or deny such proposal at any time, including after proceedings pursuant to this section have commenced. The provisions of section 13.12.1720 shall not apply to a decision to grant or deny a proposal under this subsection. The denial of a renewal pursuant to this section shall not affect action on a renewal proposal that is submitted in accordance with section 13.12.1720. CD13:140 UTILITIES § 13.12.1770 (b) Proposals for renewal outside of the provisions of section 626(a) through (g) of the Cable Act and section 13.12.1720 of this Code should be made no later than 24 months prior to the expiration of the franchise in order to allow adequate time for the city to process the application. The franchisee shall be responsible for any additional costs incurred by the city in processing an application made less than 24 months prior to the expiration of the franchise. The provisions of division 2 of this chapter shall apply to this section. (Ord. No. 14(1989), § 2(16.69.025), 6-27-89) Sec. 13.12.1740. Notices to subscribers. (a) After filing a proposal for renewal, the franchisee shall submit in the billing sent to subscribers a notice of the pending proposal and notice of any public hearings or meetings. Such notice shall not be more than 60 and not less than ten days prior to the subject meeting. (b) Upon determination of public hearing date, notice shall be made over appropriate PEG channels at least hourly between the hours of 7:00 to 9:00 a.m. and 6:00 to 9:00 p.m. and for five consecutive days, not less than three days nor more than 14 days prior to the date of the public hearing. (Ord. No. 14(1989), § 2(16.69.030), 6-27-89) Sec. 13.12.1750. Expired franchises. The city reserves the right to grant or deny any renewal of the franchise that is requested after the expiration of the initial term of the franchise and to condition any such renewal upon the franchisee's agreement to comply fully with all amendments or other modifications to the franchise as may be specified by the city council or director. (Ord. No. 14(1989), § 2(16.69.035), 6-27-89) Sec. 13.12.1760. Waiver of Cable Act section 626. If a franchisee does not timely initiate proceedings pursuant to and in accordance with section 626 of the Cable Act, such franchisee shall be deemed to have waived the provisions thereof. (Ord. No. 14(1989), § 2(16.69.040), 6-27-89) Sec. 13.12.1770. Contents of application. The application for renewal shall address the requirements specified in division 2 of this chapter, as applicable, and in section 13.12.1390. The proposal shall specifically address the community needs and interests, and shall set forth how the franchisee will meet those com- munity needs and interests. It shall set forth the extent to which the cable system will be upgraded, modernized or rebuilt, taking into account the then state-of-the-art cable systems and technology and the cost of such improvements and alterations. (Ord. No. 14(1989), § 2(16.69.050), 6-27-89) CD 13:141 § 13.12.1780 DIAMOND BAR CODE Sec. 13.12.1780. Processing fee. Each applicant for renewal must furnish with its proposal a nonrefundable filing fee in the amount set forth in section 13.12.340. The applicant shall pay any additional costs incurred by the city as provided in subsection (c) of such section. (Ord. No. 14(1989), § 2(16.69.060), 6-27-89) Sec. 13.12.1790. Processing of application. Subject to section 626 of the Cable Act, the procedure to process an application for fran- chise as specified in division 2 of this chapter shall be followed for all applications for renewal. (Ord. No. 14(1989), § 2(16.69.070), 6-27-89) CD13:142 EXHIBIT B OWNERSHIP OF JONES INTERCABLE. INC Jones Intercable, Inc., a Colorado corporation ("Company"), is a publicly held corporation whose shares of Common Stock and Class A Common Stock are traded on the NASD National Market System. The following table sets forth, as of February 26, 1997, the ownership of the Company's Common Stock or Class A Common Stock by persons known to the Company to be beneficial owners of more than 5% of either class of stock: Name and Address of Beneficial Owner Title of Class Jones International, Inc. Common Stock 9697 East Mineral Avenue Englewood, CO 80112 Class A Common Stock Glenn R. Jones Common Stock 9697 East Mineral Avenue Englewood, CO 80112 Class A Common Stock Mutuelles AXA Group Class A Via Mutuelle Common Stock 101-100 Terrasse Boledieu 92042 Paris, La Defenie, France Bell Canada International Common Stock BVI VI Limited Arawak Chamber Road Town Tortola, BVI Bell Canada International Class A BVI III Limited Common Stock Arawak Chamber Road Town Tortola, BVI The Capital Group Companies, Inc. Class A 333 South Hope Street Common Stock Los Angeles, CA 90071 Neuberger & Berman Class A 605 Third Avenue Common Stock New York, NY 10158 970204 10572-00009 lsj 0592880 0 EXHIBIT C DESCRIPTION OF AND PERFORMANCE CRITERIA FOR THE UPGRADE AND REBUILD OF THE CABLE SYSTEM TO BE COMPLETED BY GRANTEE I. FIBER BACKBONE HUB SITES A. Within two years after the effective date of the Agreement, Grantee will complete the installation of seven fiber backbone hub sites to serve the cable system. The installation of these fiber backbone hub sites will immediately add three additional channels to the cable system and will facilitate the provision of additional services as the technology and the economics associated with the delivery of these additional services improve. Additional Services facilitated by the installation of these fiber backbone hub sites will be determined by the Grantee based upon customer demand and economic feasibility. These services could include the delivery of data, delivery of digital music services, delivery of game programming, etc. B. The performance criteria for fiber backbone hub sites is. 1. Approximately 2,000 customers per hub site. 2. Approximately 2,600 homes per hub site. 3. Approximately 6 amplifiers in cascade. C. The benefits anticipated from the performance criteria referenced above in paragraph B are: 970204 10572-00009 1sj 0592880 0 1. Improved reliability. With no amplifiers between the head -end and the hub site, the interruption of services due to the loss of electrical power will be diminished about 9 to 1. 2. Immediately facilitating up to three additional channels to be added to the line-up. 3. The containment of outages to a local area, thereby affecting smaller numbers of customers. 4. The delivery of segmented programming by hub site, rather than to the entire system. II. REBUILD OF THE CABLE SYSTEM A. Within six years after the installation of the seven fiber backbone hub sites described above in Section I, but no later than December 21, 2004, Grantee will complete a rebuild of the cable system at not less than 560MHz analog, or equivalent channel capacity. B. Not later than six months prior to the completion of the installation of the seven fiber backbone hub sites described above in Section I, Grantee will submit to the Grantor its design specifications for the rebuild of the cable system. Grantor and Grantee will meet and confer in good faith to ensure that the design specifications meet the Grantor's standards and needs, and the design specifications will be subject to the Grantor's written approval, which approval will not be unreasonably delayed or withheld. 970204 10572-00009 lsj 0592880 0 G' — 2 C. The performance criteria for the rebuilt cable system will be agreed upon by Grantor and Grantee concurrently with the approval of the design specifications referenced above in paragraph B. The parties acknowledge that the cable system will, at the minimum, be rebuilt to 560 MHz analog, or, by the use of other technology, rebuilt so as to deliver the equivalent capacity of not less than 78 channels. In any event, the Grantee's rebuilt cable system must deliver an additional 21 channels over what subscribers receive as of the effective date of this Agreement. 970204 10572-00009 1Sj 0592880 0 C - 3 EXHIBIT D CONSUMER PROTECTION STANDARDS 1, Standards for Consumer Service. The Grantee must maintain a business office located within the franchise service area, and must provide all personnel, equipment, and facilities necessary to ensure compli- ance with the following standards under normal operating conditions. As used herein, the term "normal operating conditions" is deemed to exclude billing cycles, system outages, and special pay-per-view or one-time events and promotions. (a) Sufficient toll-free telephone line capacity during normal business hours to assure that a minimum of ninety percent (90%) of all calls will be answered before the fourth ring, and callers will not be required to wait more than thirty (30) seconds before being connected to a service representative. (b) Emergency, manned (which may be an answering service) toll-free telephone line capacity on a 24-hour basis, including weekends and holidays, so that a service representative may be contacted who can respond to service problems. (c) The business office must be open during normal business hours (9:00 AM to 5:00 PM, Monday through Friday, excluding holidays) and at least four (4) additional hours per week during evenings or weekends. The business office must be adequately staffed and of sufficient size to accept payments from subscribers and to respond to service requests and complaints. 970204 10572-00009 1Sj 0592880 0 (d) An emergency maintenance and repair staff capable of responding to and repairing major malfunctions of the cable television system on a 24-hour basis. (e) An installation staff capable of installing service for any residential subscriber within seven (7) days after receipt of a request, in all areas where trunk and feeder cable have been activated. (f) Within a 4 -hour time period as specified by Grantee, appointments with subscribers will be scheduled by Grantee for installation or service. The specification of appointments as either "morning" or "afternoon" will be deemed to comply with this requirement. If a subscriber requesting service on a given day cannot be scheduled for a specific morning or afternoon time period, and is advised that the Grantee's service personnel may arrive at any time during the business day, the subscriber may request the Grantee to schedule an appointment for morning or afternoon service on the next business day during which such appointments are available. 2. Requests for Cable Television Service and Repairs. (a) Grantee must render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Scheduled interruptions, to the extent possible, must be preceded by notice to the subscribers and must occur during periods of minimum use of the system, preferably between 12:00 midnight and 6:00 A.M. A written log, or equivalent computer data which is capable of access and reproduction, must be maintained for all service interruptions, 970204 10572-00009 lsj 0592880 0 D 2 subscriber requests for repair, and subscriber service complaints that result in a service call. (b) Grantee must maintain a repair force of techni- cians normally capable of responding to subscriber requests for service within the following time periods: (1) System outage: Within two hours on weekdays, and within four hours on weekends and holidays, after receiving subscriber calls that identify a system outage of audio or video on one or more channels, and which outage affects three or more subscribers in the same geographic area. (2) Isolated outage: within twenty-four hours after receiving a request for service that identifies an isolated outage of audio or video on all channels, and which outage affects an individual subscriber. (3) Inferior reception quality: Within forty- eight hours, excluding weekends and holidays, after receiving a request for service that identifies a problem concerning audio or video quality. (c) Grantee will be deemed to have responded to a request for service under the provisions of this Section when a repair technician arrives at the service location and commences work on the problem. If a subscriber is not home when the tech- nician arrives, response will be deemed to have been made if the technician leaves written notification of arrival. 3. Verification of Compliance. Upon reasonable notice from the Grantor, the Grantee must demonstrate compliance with any or all of the standards set forth in Sections 1 and 2 above. 970204 10572-00009 lsj 0592880 0 D - 3 Grantee must provide sufficient information to permit Grantor to verify the extent of compliance. 4. Non-compliance with Standards. A repeated and verifiable pattern of non-compliance with the consumer protection standards of Sections 1 and 2, subsequent to Grantee's receipt of due notice and an opportunity to cure, may be deemed a violation of the franchise, subject to any and all remedies as prescribed in the Agreement, and applicable law. 5. Complaint Procedures. (a) Complaints to Grantee. Grantee must establish written procedures for receiving, acting upon, and resolving subscriber complaints without intervention by Grantor. The written procedures must prescribe the manner in which a subscriber may submit a complaint, either orally or in writing, that Grantee has violated any provision of Chapter 13.12 of the Code relating to consumer protection, the Agreement, or the subscriber's contract with Grantee. Following Grantee's investigation of a subscriber complaint, but in no event more than ten days after receiving the complaint, Grantee must notify the subscriber of the results of the investigation and of its proposed corrective action, if any. Grantee must also notify the subscriber of the subscriber's right to file a complaint with Grantor if the subscriber is dissatisfied with Grantee's decision. A copy of Grantee's written procedures must be filed with Grantor. (b) Complaints to Grantor. A subscriber who is dissatisfied with Grantee's proposed decision, or who was not 970204 10572-00009 lsj 0592880 0 D - 4 notified by Grantee within the ten day period, is entitled to have the complaint reviewed by the Grantor. The subscriber may initiate that review by filing a written complaint together with Grantee's decision, if any, with Grantor. Grantor will notify Grantee of that filing. The subscriber must file its complaint within twenty days after receipt of Grantee's decision, or, if no such decision has been provided, within thirty days after filing the original complaint with Grantee. Grantor may extend these time limits for reasonable cause. (c) Review by Grantor. Grantor will determine, following its review of a subscriber complaint and the Grantee's decision, if any, whether further action is warranted. If Grantor does not initiate further proceedings within fifteen days after the filing of the complaint, Grantee's proposed decision as to corrective action will be final. If Grantor decides to initiate further action, the Grantor will require Grantee and the subscriber to submit, within ten days of notice thereof, a written statement of the facts and arguments in support of their respective positions. Grantee or the subscriber may request in that statement that the matter be heard by the City Manager. Notice in writing specifying the time and place for that hearing will be given by the Grantor. The hearing will be conducted informally, and the parties may offer any evidence pertinent to the dispute. The City Manager will issue a written decision within fifteen days after receipt of the written statements or, if a hearing is requested, within fifteen days of the conclusion of the hearing, setting forth the basis of the decision. The 970204 10572-00009 lsj 0592880 0 D - 5 decision may be appealed to the City Council and, if so appealed, the City Council's determination will be final. 6. Remedies for Violations. Grantor may, as a part of the determination of a subscriber complaint in accordance with Section 5, impose penalties on Grantee if Grantor finds a pattern of substantial violations of consumer service standards, or that Grantee has arbitrarily and without justification failed or refused to comply with the provisions of Section 5. No monetary penalty imposed may exceed the sum of Two Hundred Fifty Dollars ($250) per day or per violation. 7. Notices. (a) Operating Policies. As subscribers are connected or reconnected to the cable television system, and at least once during each calendar year thereafter, Grantee must provide each subscriber with written notification concerning the procedures for making inquiries or submitting complaints, including the address and toll-free telephone number of the Grantee's business office, the names or titles of the designated employees or agents to whom those inquiries or complaints are to be directed, and information concerning the officer, employee, or department of the Grantor responsible for administration of the Franchise Agreement, with the address and telephone number of that officer, employee, or department. That notification must also set forth Grantee's normal business hours, legal holidays, and procedures for submitting inquiries, complaints, or requests for service after normal business hours. 970204 10572-00009 lsj 0592880 0 D - 6 (b) Changes in Operating Policies. Grantee must provide to all subscribers and to Grantor written notice not less than thirty (30) days prior to any material change in these operating policies. (c) Copies to Grantor. Copies of all written notices provided by Grantee to its subscribers that relate to operating policies and procedures, rates and charges, or programming services must concurrently be transmitted to Grantor. S. Ouality of Service. As provided for in the Agreement, the overall quality of service provided by Grantee to subscribers is subject to periodic evaluations by Grantor. In addition, Grantor may at any time evaluate the quality of service when warranted by the number of subscriber complaints received by Grantee and Grantor, and Grantee's response to those complaints. Grantor's determination that service quality does not comply with the requirements of the Agreement may result in direction to Grantee to cure that non-compliance. Grantee's failure to commence corrective action within the time specified in Grantor's written notice may be deemed a violation of the franchise and subject to the remedies prescribed in the Agreement. Grantor, after following the required notice and hearing procedures, may recover its costs, expenses, damages, and penalties attributable to the violation against any security fund, performance bond, or other security that is provided by Grantee. 970204 10572-00009 lsj 0592880 0 D - 7 AGENDA ITEM NO. 9.1 NO DOCUMENTATION AVAILABLE 1 2. 3. 4. 5. 6. 7. 8. 9. MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING OF THE DIAMOND BAR REDEVELOPMENT AGENCY MARCH 4, 1997 CALL TO ORDER: Chairman Werner ROLL CALL: Agency Members Ansari, Harmony, Herrera, Vice -Chairman Huff, Chairman Werner Also present were: Terrence L. Belanger, Executive Director; Frank Usher, Assistant City Manager; Michael Jenkins, Agency Attorney; James DeStefano, Community Development Director; George Wentz, Public Works Director; Bob Rose, Community Services Director and Lynda Burgess, Agency Secretary. PUBLIC COMMENTS: None offered. CONSENT CALENDAR: VC/Huff moved, AM/Herrera seconded, to approve the Consent Calendar. Motion carried by the following Roll Call vote: AYES: AGENCY MEMBERS - Ansari, Harmony, Herrera, VC/Huff, Chair/Werner NOES: AGENCY MEMBERS - None ABSENT: AGENCY MEMBERS - None 3.1 APPROVED MINUTES - Regular Meeting of February 18, 1997 as submitted. 3.2 APPROVED VOUCHER REGISTER - dated March 4, 1997 in the amount of $6,385.39. PUBLIC HEARINGS: None OLD BUSINESS: None NEW BUSINESS: None AGENCY MEMBER COMMENTS: None AGENCY SUB -COMMITTEE REPORTS: None ADJOURNMENT: There being no further business to conduct, C/Werner adjourned the Redevelopment Agency meeting at 8:49 p.m. ATTEST: Chairman LYNDA BURGESS, Agency Secretary DIAMOND BAR REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: Chairman Werner and Board of Directors FROM: Linda G. Magnuson Accounting Manager SUBJECT: Voucher Register, March 18, 1997 DATE: March 13, 1997 Attached is the Voucher Register dated March 18, 1997 for the Diamond Bar Redevelopment Agency. The checks will be produced after any recommendations and the final approval is received. Payment of the listed vouchers totalling $25,152.44 is hereby allowed from the Diamond Bar Redevelopment Agency Fund. APPROVED BY: Linda G. Magn s n Gary H. Werner Accounting Manager Chairman 46W 1414� rrence L. Belanger Robert S. Huff Executive Director 61 Vice Chairman RUN TIME: 17:38 03%1 .'97u U H} ,. R C G I S T E R ?AGS 1 FUND SUMMARY REPORT DUE THRU........... ..031/1_'?97 DI5BlIR5E S/L 3JE WT LL Fi13ST E_JE HAS POSTED FUTURE TRANSACTIONS FUND TOTAL DIRECT PAY REVENUE EXPENSE REVENUE EXPENSE REVENUE EXPENSE ------------------------------------------------------------------------------------------------------------------------------------ ,'�- -45,152.44 2.5,1522.44 rAL ALL FUNDS 25,152.447, 152.44 REDEVELOPMENT DOCUMENT DISTRIBUTION Redevelopment Agency Meeting - 3/18/97 Draft Draft Draft Redevelopment Owner General Plan Participation Relocation Rules Plan City Council v City Manager City Attorney Asst. City Manager Com. Dev. Dir.�� City Clerk Press Public Review All others L' <S�S f/r SA- — s 6-1 S �-- Preliminary Report tZ L� The draft Redevelopment Plan is available for reading at the City Clerk's office at City Hall. If you wish to obtain a copy, please contact the City Manager's office at (909) 396-5666. The draft Owner Participation Rules are available for reading at the City Clerk's office at City Hall. If you wish to obtain a copy, please contact the City Manager's office at (909) 396-5666. The draft General Relocation Plan is available for reading at the City Clerk's office at City Hall. If you wish to obtain a copy, please contact the City Manager's office at (909) 396-5666. The Preliminary Report is available for reading at the City Clerk's office at City Hall. If you wish to obtain a copy, please contact the City Manager's office at (909) 396-5666. MEMORANDUM TO: Honorable Chairman and Agency Members FROM: Terrence L. Belanger, Executive Director DATE: March 18, 1997 SUBJECT: Resolution Receiving the Draft Redevelopment Plan for the Diamond Bar Economic Revitalization Area, and Authorizing Transmittal of the Proposed Redevelopment Plan to Affected Taxing Agencies, and Persons and Organizations within the Project Area and Submittal to the Planning Commission for Report and Recommendation Recommendation: That the Diamond Bar Redevelopment Agency adopt a resolution receiving the draft Redevelopment Plan for the Diamond Bar Economic Revitalization Area, and authorizing transmittal of the proposed Redevelopment Plan. Background: The Diamond Bar Redevelopment Agency has undertaken proceedings for the adoption of the Redevelopment Plan for the Diamond Bar Economic Revitalization Area ("Redevelopment Plan"). On November 19, 1996, the Agency adopted Resolution No. R-96-09, approving the selection of the area within the boundaries of the Diamond Bar Economic Revitalization Area ("Project Area") and the Preliminary Plan for the Diamond Bar Economic Revitalization Area ("Project"). The adoption of this Resolution also directed the preparation of a redevelopment plan for the Project and the noticing of affected taxing agencies of the proposed adoption of the Redevelopment Plan and Project Area. The Redevelopment Plan is based on the Preliminary Plan, approved by the Diamond Bar Redevelopment Agency ("Agency") on November 19, 1996, and provides a framework of goals, powers, duties, and obligations to implement the redevelopment program. Generally, the Redevelopment Plan also allows the Agency to collect tax increment revenues to construct needed public improvements, acquire property for sale and lease, fund affordable housing, and generally rehabilitate and improve the Diamond Bar Economic Revitalization Area. Draft Redevelopment Plan Page 2 The Redevelopment Plan is essentially a legal document (rather than a "plan") that sets forth the Agency's goals, powers, duties, and obligations to implement the redevelopment program within the Project Area. This is underscored by the language in paragraph two on page one, which describes the Redevelopment Plan as presenting a process and framework within which specific development plans will be presented, priorities for specific projects will be established, and specific solutions will be proposed, and by which tools are provided to the Agency to fashion, develop, and proceed with such specific plans, projects and solutions. More specifically, the Redevelopment Plan provides a framework which allows the Agency to: 1) assist in implementing the policies, goals, objectives and strategies as presented in the General Plan of the City of Diamond Bar; 2) fund property rehabilitation programs; 3) construct public facility and infrastructure improvements (such as those shown in Exhibit C to the Redevelopment Plan); 4) provide for affordable housing opportunities in conjunction with the City's Housing Element; 5) acquire property for sale or lease within the Project Area; 6) collect tax increment to fund rehabilitation programs, public improvements, and other Agency activities; and 7) sell bonds to fund, in whole or in part, rehabilitation programs, public improvements, and other Agency activities. The Redevelopment Plan will remain in effect for 30 years and the Agency will have the ability to collect tax increment revenues for 15 additional years after that point (for a total of 45 years), provided that debt service payments on Outstanding bonds are required after the 30 year term of the Redevelopment Planhas, expired. The draft Redevelopment Plan is being reviewed by the Ad Hoc Advisory Committee: The final Redevelopment Plan will be considered for approval by the City Council at the joint City Council / Redevelopment Agency public hearing scheduled for May 20, 1997. RESOLUTION NO. R -97- A RESOLUTION OF THE DIAMOND BAR REDEVELOPMENT AGENCY RECEIVING THE PROPOSED REDEVELOPMENT PLAN FOR THE DIAMOND BAR ECONOMIC REVITALIZATION AREA, AND AUTHORIZING TRANSMITTAL OF THE PROPOSED REDEVELOPMENT PLAN TO AFFECTED TAXING AGENCIES, AND PERSONS AND ORGANIZATIONS WITHIN THE PROJECT AREA AND SUBMITTAL TO THE PLANNING COMMISSION FOR REPORT AND RECOMMENDATION A. RECITALS 1. A draft Redevelopment Plan has been prepared for the Diamond Bar Economic Revitalization Area; and 2. The California Community Redevelopment Law (Health and Safety Code Section 33000, et sea.) ("CRL") provides in Section 33385(f) and 33386 that the Agency shall consult with and obtain the advice of persons and organizations within the Diamond Bar Economic Revitalization Area on the proposed Redevelopment Plan prior to its submittal to the City Council; and 3. The CRL provides in Section 33328 that prior to the publication of the notice of a joint Agency/City Council public hearing on the proposed Redevelopment Plan for the Diamond Bar Economic Revitalization Area ("Redevelopment Plan"), the Diamond Bar Redevelopment Agency ("Agency") shall consult with each affected taxing agency with respect to the proposed Redevelopment Plan; and 4. The CRL further provides in Section 33356 that prior to a joint public hearing on the proposed Redevelopment Plan, the Agency shall submit the proposed Redevelopment Plan to the Planning Commission for its report and recommendation. B. RESOLUTIONS NOW, THEREFORE, it is found, determined, and resolved by the Diamond Bar Redevelopment Agency as follows: 1. The proposed Redevelopment Plan for the Diamond Bar Economic Revitalization Area, a copy of which is attached hereto as Attachment A, is ordered, received and filed. 2. The Executive Director, Agency staff and consultants are authorized and directed to meet with and make available to residents and community organizations copies of the proposed Redevelopment Plan prior to submitting it to the City Council, and consult with, and obtain the advice of, residents and community organizations in accordance with CRL Section 33386.. DiambeAplanrao -1- 116/97 DRAFT 3. The Executive Director is authorized and directed to transmit the proposed Redevelopment Plan to each affected taxing agency for purposes of consultations. Agency staff is authorized and directed to consult with the affected taxing agencies with respect to the proposed redevelopment plan and the allocation of taxes pursuant to CRL Section 33670. 4. The Secretary shall refer the proposed Redevelopment Plan to the Diamond Bar Planning Commission for report and recommendation. PASSED, APPROVED AND ADOPTED this day of , 1997. I hereby certify that the foregoing Resolution was duly adopted by the Diamond Bar Redevelopment Agency at its regular meeting thereof held on the day of , 1997, by the following vote of the Agency: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS: ABSENT: AGENCY MEMBERS: ABSTAINED: AGENCY MEMBERS: Secretary Diambarlplmn _2_ 1/6/97 DRAFT MEMORANDUM TO: Honorable Chairman and Agency Members rss FROM: Terrence L. Belanger, Executive Director ,� DATE: March 18, 1997 SUBJECT: Resolution Approving Draft Rules Governing Participation and Preferences by Property Owners, Operators of Businesses, and Business Tenants in the Diamond Bar Economic Revitalization Area Recommendation: That the Diamond Bar Redevelopment Agency adopt a resolution approving the draft Rules Governing Participation and Reentry Preferences for Property Owners, Operators of Businesses, and Business Tenants in the Diamond Bar Economic Revitalization Area and directing that such Rules be made available for public inspection. Background: The Diamond Bar Redevelopment Agency ("Agency") has initiated proceedings for the adoption of the Redevelopment Plan for the Diamond Bar Economic Revitalization Area with the adoption of Resolution No. R-96-09, approving the selection of the area within the boundaries of the Diamond Bar Economic Revitalization Area("Project Area") and the Preliminary Plan for the Diamond Bar Economic Revitalization Area ("Project"), on November 19, 1996. A draft Redevelopment Plan has also been prepared for the Diamond Bar Economic Revitalization Area ("Plan"), as directed by Resolution No. R-96-09. The approval of the draft Rules Governing Participation and Reentry Preferences for Property Owners, Operators of Businesses and Business Tenants is a requirement of the California Community Redevelopment Law, which states that within a reasonable time before the approval of a redevelopment plan, the Agency shall make available for public inspection rules to implement the operation of owner participation in connection with the Plan. The Redevelopment Law also requires that the Agency adopt rules to extend reasonable preferences to persons engaged in business in the Diamond Bar Economic Revitalization Area to reenter within the Project Area, and these rules are also to be made available for public inspection prior to their Draft Owner Participation Rules Page 2 adoption. Although not required by the Redevelopment Law, it is reasonable to include the business preferences rules in the same set of rules addressing owner participation. Persons engaged in business refers to operators of businesses or business tenants The draft Rules Governing Participation and Reentry Preferences for Property Owners, Operators of Businesses, and Business Tenants provides guidelines for the participation of property owners, operators of businesses and business tenants in the Project Area. More specifically, in the event the Agency wishes to rehabilitate, redevelop or develop a property in the Project Area or a property owner, business operator or business tenant wishes to participate in the redevelopment process, the draft Rules Governing Participation and Reentry Preferences for Property Owners, Operators of Businesses and Business Tenants outline the procedures to be followed to ensure that both the rights of the participant in the redevelopment process are preserved and the goals stated in the Redevelopment Plan are achieved. The draft Rules will be reviewed by the Ad Hoc Advisory Committee. The final Owner Participation Rules will be included as part of the Agency's Report to City Council (a document which will be presented at the joint public hearing for the proposed Diamond Bar Economic Revitalization Plan) and will be adopted by the Agency at the joint public hearing for the Redevelopment Plan. RESOLUTION NO. R -97- A RESOLUTION OF THE DIAMOND BAR REDEVELOPMENT AGENCY APPROVING DRAFT RULES GOVERNING PARTICIPATION AND PREFERENCES BY PROPERTY OWNERS, OPERATORS OF BUSINESSES, AND BUSINESS TENANTS IN THE DIAMOND BAR ECONOMIC REVITALIZATION AREA AND DIRECTING THAT SUCH RULES BE MADE AVAILABLE FOR PUBLIC INSPECTION A. RECITALS 1. Section 33339.5, of the California Community Redevelopment Law (Health and Safety Code Section 33000, et se .), provides that the Diamond Bar Redevelopment Agency ("Agency") shall adopt and make available for public inspection rules to implement the operation of business reentry preferences in connection with the Redevelopment Plan for the Diamond Bar Economic Revitalization Area; and 2. Section 33345 of the California Community Redevelopment Law provides that the Agency shall adopt and make available for public inspection rules to implement the operation of owner participation in connection with the Redevelopment Plan for the Diamond Bar Economic Revitalization Area. B. RESOLUTIONS NOW, THEREFORE, it is found, determined, and resolved by the Diamond Bar Redevelopment Agency as follows: 1. The draft Rules Governing Participation and Preferences by Property Owners, Operators of Businesses, and Business Tenants in the Diamond Bar Economic Revitalization Area, attached as Exhibit A and by reference made a part hereof, are hereby approved. 2. The Executive Director of the Diamond Bar Redevelopment Agency shall make the draft Rules Governing Participation and Preferences by Property Owners, Operators of Businesses, and Business Tenants in the Diamond Bar Economic Revitalization Area available for public inspection. DiambaAopreso -1- 1/6197 DRAFT PASSED, APPROVED AND ADOPTED this day of 91997. I, hereby certify that the foregoing Resolution was duly adopted by the Diamond Bar Redevelopment Agency at its regular meeting thereof held on the day of 1997, by the following vote of the Agency: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS: ABSENT: AGENCY MEMBERS: ABSTAINED: AGENCY MEMBERS: Secretary _2_ 1/6/97 DRAFT Diembarbprao MEMORANDUM TO: Honorable Chairman and Agency Members FROM: Terrence L. Belanger, Executive Director 1 _V DATE: March 18, 1997 SUBJECT: Resolution Receiving and Directing that the Draft General Relocation Plan Be Made Available for Public Inspection Recommendation: That the Diamond Bar Redevelopment Agency adopt a resolution approving the draft General Relocation Rules (Method of Relocation pursuant to Section 33411 of the California Community Redevelopment Law) for the Diamond Bar Economic Revitalization Area. Background: The Diamond Bar Redevelopment Agency ("Agency") has initiated proceedings for the adoption of the Redevelopment Plan for the Diamond Bar Economic Revitalization Area ("Redevelopment Plan"). On November 19, 1996, the Agency adopted Resolution No. R-96-09, approving the boundaries of the Diamond Bar Economic Revitalization Area ("Project Area"), and the Preliminary Plan for the Project Area. The adoption of this Resolution also directed the preparation of a redevelopment plan for the Project Area, and the noticing of affected taxing agencies of the proposed adoption of the Redevelopment Plan. To date, the required notices pursuant to Sections 33327 and 33328 of the California Community Redevelopment Law ("CRL") were transmitted to affected taxing agencies on November 21, 1996, and the following documents have been prepared in connection with the Project Area for Agency receipt at this meeting: 1) the draft Redevelopment Plan; 2) the draft Rules Governing Owner Participation and Re-entry Preferences for Property Owners, Operators of Businesses and Business Tenants; 3) the draft General Relocation Plan; and 4) the Preliminary Report. The Agency has formed an Ad -Hoc Advisory Committee for the purposes of providing a public forum, advice and recommendation on documents prepared as part of the redevelopment process. General Relocation Plan Page 2 This Committee has met three times: January 28, 1997, February 19, 1997, and March 17, 1997. At these meetings, Agency staff and the consultant have provided oral presentations and written material regarding the redevelopment process. Copies of the draft Redevelopment Plan, the draft Rules Governing Owner Participation and Re-entry Preferences to Property Owners, Operators of Businesses and Business Tenants, and the draft General Relocation Plan have been distributed. Section 33411 of the CRL requires that the Agency prepare a feasible method or plan for the relocation of families or persons to be temporarily or permanently displaced from housing facilities in the Project Area, and for nonprofit local community institutions to be temporarily or permanently displaced from facilities actually used for institutional purposes in the Project Area. It is important to note that there are very few uses that fall into the categories of "housing facilities" and "non-profit community institutions" in the Project Area. More specifically, there are a total of two known residential units and perhaps one or two non-profit or institutional uses in the Project Area. However, the Agency is required to approve and later adopt a feasible method or plan of relocation, eg. the draft General Relocation Rules, in order to comply with the provisions of the CRL. When the draft General Relocation Rules are approved, they will be made available for public review. The final General Relocation Rules will be included as part of the Agency's Report to City Council (a document which will be presented at the joint public hearing for.the proposed Diamond Bar Economic Revitalization Plan) and will be adopted by the Agency at the joint public hearing for the Redevelopment Plan. RESOLUTION NO. A RESOLUTION OF THE DIAMOND BAR REDEVELOPMENT AGENCY APPROVING DRAFT GENERAL RELOCATION RULES (METHOD OF RELOCATION PURSUANT TO SECTION 33411 OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW) FOR THE DIAMOND BAR ECONOMIC REVITALIZATION AREA A. RECITALS The Diamond Bar Redevelopment Agency ( "Agency") has undertaken the required steps for the consideration of the adoption of the proposed Redevelopment Plan for the Diamond Bar Economic Revitalization Area; 2. A draft Redevelopment Plan for the Diamond Bar Economic Revitalization Area ("Redevelopment Plan") has been prepared in accordance with the provisions of California Health and Safety Code Sections 33000, et seq., ( "California Community Redevelopment Law"); 3. Section 33411 of the California Community Redevelopment Law provides that the Agency shall prepare a feasible method or plan for relocation of all of the following: a. Families and persons to be temporarily or permanently displaced from housing facilities in the project area; b. Nonprofit local community institutions to be temporarily or permanently displaced from facilities actually used for institutional purposes in the project area; 4. Section 33352(f) of the Community Redevelopment Law requires that the Report submitted to the City Council in connection with the Redevelopment Plan include a method or plan for the relocation of families and persons to be temporarily or permanently displaced from the Diamond Bar Economic Revitalization Area; and 5. The Agency desires to approve Draft General Relocation Rules (Method of Relocation pursuant to Section 33411 of the California Community Redevelopment Law) applicable to the Diamond Bar Economic Revitalization Area. B. RESOLUTIONS NOW, THEREFORE, it is found, determined, and resolved by the Diamond Bar Redevelopment Agency as follows: The Draft General Relocation Rules ("Method of Relocation pursuant to Section 33411 of the California Community Redevelopment Law) for the Diamond Bar Economic Revitalization Area ( "Draft General Relocation Rules") attached hereto as Attachment A and incorporated herein by reference as the Draft General Relocation Rules for the Diamond Bar Economic Revitalization Area are hereby approved and adopted. DimbmrVm 197 1 03/12/97 PASSED, APPROVED AND ADOPTED this day of , 1997. I hereby certify that the foregoing Resolution was duly Redevelopment Agency as its regular meeting thereof held on the 1997, by the following vote of the Agency: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS: ABSENT: AGENCY MEMBERS: ABSTAINED: AGENCY MEMBERS: Secretary adopted by the Diamond Bar day of , Diamber\ra 197 2 03/ I J97 TO: Honorable Chairman and Agency Members FROM: Terrence L. Belanger, Executive Director ' `�1J DATE: March 18, 1997 SUBJECT: Resolution Approving as to Form the Preliminary Report and Authorizing Staff to Circulate the Preliminary Report to Affected Taxing Agencies, County Officials, and the Planning Commission Recommendation: That the Diamond Bar Redevelopment Agency adopt a resolution approving the Preliminary Report for the Diamond Bar Economic Revitalization Area and directing the transmittal of the Preliminary Report to the affected taxing agencies. Background: The Diamond Bar Redevelopment Agency has undertaken proceedings for the adoption of the Redevelopment Plan for the Diamond Bar Economic Revitalization Area ("Redevelopment Plan"). On November 19, 1996, the Agency adopted Resolution No. 96-09 approving the selection of the area within the boundaries of the Diamond Bar Economic Revitalization Area ("Project Area") and the Preliminary Plan for the Diamond Bar Economic Revitalization Area ("Project"). The adoption of this Resolution also directed the preparation of a redevelopment plan for the Project and the noticing of affected taxing agencies of the proposed adoption of the Project Area. To date, the required notices pursuant to Sections 33327 and 33328 of the California Community Redevelopment Law ("CRL") were transmitted to affected taxing entities on November 21, 1996, and the Draft Redevelopment Plan, as well as the Draft Rules Governing Owner Participation and Re-entry Preferences to Property Owners, Operators of Businesses and Business Tenants, and the Draft General Relocation Plan, have been prepared for Agency receipt at this meeting. Additionally, the Agency has initiated the formation of an Ad -Hoc Advisory Committee for the purposes of providing a public forum, advice and recommendation on documents prepared as part of the redevelopment process. Preliminary Report Page 2 The Preliminary Report has been prepared to the prescribed requirements of the CRL, and includes, among other things, a description of the physical and economic conditions in the Project Area, an analysis of the financial feasibility of the Project, a discussion regarding the urbanization of the Project Area, and a description of how projects and programs implemented as part of the Redevelopment Plan for the Diamond Bar Economic Revitalization Area will alleviate the adverse physical and economic conditions in the Project Area. More specifically, the CRL requires that the Preliminary Report contain the following sections: (1) the reasons for the selection of the Project Area; (2) a description of the physical and economic conditions which exist in the proposed Project Area; (3) a determination as to whether the Project Area is predominantly urbanized; (4) a preliminary assessment of the proposed method of financing the redevelopment of the Project Area, including an assessment of the economic feasibility of the Project and the reasons for the provision of tax increments; and (5) a description of how the Redevelopment Plan and the proposed projects to be pursued by the Agency will improve or alleviate blighting conditions. The purpose of the Preliminary Report is to provide information to taxing agencies regarding why the Agency proposed to adopt the Redevelopment Plan for the Project, thereby giving them the opportunity to review the proposed Project and raise questions and make comments, if so desired. The Preliminary Report, along with the proposed Redevelopment Plan and the EIR, will be transmitted to each affected taxing agency. RESOLUTION NO. R -97- A RESOLUTION OF THE DIAMOND BAR REDEVELOPMENT AGENCY APPROVING THE PRELIMINARY REPORT FOR THE DIAMOND BAR ECONOMIC REVITALIZATION AREA AND DIRECTING THE TRANSMITTAL OF THE PRELIMINARY REPORT TO THE AFFECTED TAXING AGENCIES A. RECITALS 1. The California Community Redevelopment Law (Health and Safety Code Section 33000, et sea.) ("CRL") provides in Section 33328 that the Diamond Bar Redevelopment Agency ("Agency") shall consult with each taxing entity, which levies taxes or for which taxes are levied on property in the Diamond Bar Economic Revitalization Area ("Project Area"), with respect to the Redevelopment Plan for the Project Area and the allocation of taxes pursuant to Section 33670 of the CRL. 2. A Preliminary Report has been prepared on the proposed Redevelopment Plan for the Project Area ("Preliminary Report") for transmittal to the affected taxing agencies for consultation purposes, pursuant to Section 33344.5 of the CRL. 3. The report regarding the proposed base year assessment roll, required by Section 33328 of the CRL ("Base Year Report"), was requested from the Los Angeles County Auditor -Controller's Office by the Agency on November 20, 1996 and has not been received as of the date of this resolution. 4. Section 33328 of the CRL allows that in the event the Base Year Report is not received within the 60 day time period required in this Section, the Agency may proceed with the adoption of the Redevelopment Plan for the Project Area. B. RESOLUTIONS NOW, THEREFORE, it is found, determined, and resolved by the Diamond Bar Redevelopment Agency as follows: 1. The Preliminary Report, a copy of which is attached hereto as Attachment A, is ordered, received and filed. 2. The Executive Director is authorized and directed to transmit the Preliminary Report to each affected taxing agency for purposes of consultations in accordance with the provisions of the CRL. Di mbsrlpl nrc2 -1- 03/12/97 DRAFT 3. The Executive Director and Agency staff are authorized and directed to continue consultations with the affected taxing agencies with respect to the proposed Redevelopment Plan and the allocation of taxes pursuant to Section 33670 of the CRL. PASSED, APPROVED AND ADOPTED this day of , 1997. I hereby certify that the foregoing Resolution was duly adopted by the Diamond Bar Redevelopment Agency at its regular meeting thereof held on the day of , 1997, by the following vote of the Agency: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS: ABSENT: AGENCY MEMBERS: ABSTAINED: AGENCY MEMBERS: Secretary ffi mbv�plwm2 -2- 03/12/97 DRAFT RULES GOVERNING PARTICIPATION AND REENTRY PREFERENCES FOR PROPERTY OWNERS, OPERATORS OF BUSINESSES, AND BUSINESS TENANTS FOR THE DIAMOND BAR REDEVELOPMENT AGENCY DIAMOND BAR ECONOMIC REVITALIZATION AREA SECTION I. (100) INTRODUCTION California Community Redevelopment Law (Health and Safety Code Sections 33000 et sem.) Section 33345 requires that the Diamond Bar Redevelopment Agency (the "Agency") establish and make known to property owners, businesses, and business tenants within the Diamond Bar Economic Revitalization Area (the "Project Area") the Agency's rules and guidelines for implementing owner participation opportunities in the Project Area, which is subject to the Redevelopment Plan for the Diamond Bar Economic Revitalization Area. These are the Rules Governing Participation and Reentry Preferences for Property Owners, Operators of Businesses, and Business Tenants for the Project Area. These rules are based upon the following objectives: 1. The Agency's commitment to afford maximum participation to existing property owners who will be affected by the Agency's activities within the Project Area, and The Agency's commitment to extend reasonable preferences to existing property owners and persons who are engaged in business within the Project Area, in the redevelopment, rental, or ownership of new industrial, commercial, or residential uses within the Project Area. These rules set forth the process for owner participation in the Project Area. SECTION II. (200) GENERAL DEFINITIONS The following definitions will be used generally in the context of these Rules Governing Participation and Reentry Preferences for Property Owners, Operators of Businesses, and Business Tenants, unless otherwise specified herein. A. "Agency" means the Diamond Bar Redevelopment Agency. B. "City" means the City of Diamond Bar. C. "Redevelopment Law" means the California Community Redevelopment Law (Health and Safety Code Sections 33000 et sea.). Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March 11, 1997 1 Owner Participation Rules RULES GOVERNING PARTICIPATION AND REENTRY PREFERENCES FOR PROPERTY OWNERS, OPERATORS OF BUSINESSES, AND BUSINESS TENANTS FOR THE DIAMOND BAR REDEVELOPMENT AGENCY DIAMOND BAR ECONOMIC REVITALIZATION AREA SECTION I. (100) INTRODUCTION California Community Redevelopment Law (Health and Safety Code Sections 33000 et seg.) Section 33345 requires that the Diamond Bar Redevelopment Agency (the "Agency") establish and make known to property owners, businesses, and business tenants within the Diamond Bar Economic Revitalization Area (the "Project Area") the Agency's rules and guidelines for implementing owner participation opportunities in the Project Area, which is subject to the Redevelopment Plan for the Diamond Bar Economic Revitalization Area. These are the Rules Governing Participation and Reentry Preferences for Property Owners, Operators of Businesses, and Business Tenants for the Project Area. These rules are based upon the following objectives: 1 • The Agency's commitment to afford maximum participation to existing property owners who will be affected by the Agency's activities within the Project Area, and 2. The Agency's commitment to extend reasonable preferences to existing property owners and persons who are engaged in business within the Project Area, in the redevelopment, rental, or ownership of new industrial, commercial, or residential uses within the Project Area. These rules set forth the process for owner participation in the Project Area. SECTION II. (200) GENERAL DEFINITIONS The following definitions will be used generally in the context of these Rules Governing Participation and Reentry Preferences for Property Owners, Operators of Businesses, and Business Tenants, unless otherwise specified herein. A. "Agency" means the Diamond Bar Redevelopment Agency. B. "City" means the City of Diamond Bar. C. "Redevelopment Law" means the California Community Redevelopment Law (Health and Safety Code Sections 33000 et sed.). Rosenow Spevacek Group, Inc Diamond Bar Redevelopment Agency March 11, 1997 1 Owner Participation Rules I . The appropriateness of some land uses (i.e., compatibility with existing and planned uses in the area). 2. The realignment, widening, opening, and/or elimination of public rights-of-way per the City's General Plan, as it now exists or is hereafter amended. 3. The removal, relocation, and/or installation of public utilities and public facilities. 4. The ability of participants to finance and/or complete proposed acquisitions and developments. 5. The change in orientation and character of the Project Area. 6. The necessity to assemble areas for public and/or private development. The Plan authorizes the Agency to establish reasonable priorities and preferences among participants; accordingly, the following order of priorities is established: Existing property owners and tenants desiring to participate in their same location in compliance with the Plan and these Rules, and desiring to build new commercial, industrial, or residential developments. 2. Owner -occupants relocating within the Project Area in accordance with and as a result of an implementation project which may cause the temporary displacement of a property owner. 3. Existing tenants relocating within the Project Area in accordance with and as a result of Plan implementation. The Agency may, in its discretion, decline any offer of owner participation, resolve conflicting proposals between owners interested in redeveloping the property, or resolve conflicting proposals between owners and others interested in redeveloping the property based upon a number of considerations including, without limitation, the following: 1. Conformity of proposals with the intent and objectives of the Plan. 2. Whether the proposal will be in the public interest. 3. The amount of sales tax revenue, tax increment revenue, and other economic benefit accruing to the City and the Agency from the proposal. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency 3 Owner Participation Rules March 11, 1997 4. Employment retention and generation and other economic benefits to the community which can be expected if the proposal is accepted. 5. Size and configuration of the parcel proposed for owner participation. 6. Ability of persons desiring to develop or redevelop the property to implement the proposed project, taking into consideration the developer's financial capability, prior experience with similar development, ability to obtain financing, and ability to abide by Agency design standards and development controls. 7. The time schedule for completion of a proposed project. 8. The estimated cost of public and Agency services required if the proposal is accepted. SECTION IV. (400) PARTICIPATION BY OWNERS OF REAL PROPERTY A. (401) Particination in the Same Location In appropriate circumstances, as determined by the Agency, where such action would foster the goals and objectives of the Plan, an owner may participate in substantially the same location either by retaining all or portions of his/her property and purchasing adjacent property if needed and available for development; rehabilitating or demolishing all or part of his/her existing buildings or structures; initiating new development; and selling property or improvements to the Agency. B. (402) Particination in a Different Location When necessary to accomplish the objectives of the Plan as determined by the Agency, the Agency may buy land and improvements at fair market value from existing owners and offer real property for purchase to prospective owner -participants within the Project Area. SECTION V. (500) PARTICIPATION BY TENANTS Pursuant to these Rules, nonproperty owners who are tenants engaged in business in the Project Area will be given opportunities to remain or to obtain reasonable preferences to reenter in business within the Project Area if they otherwise meet the requirements prescribed by the Plan and these Rules. Rosenow Spevacek Croup, Inc. Diamond Bar Redevelopment Agency March 11, 1997 4 Owner Participation Rules SECTION VI. (600) TYPES OF PARTICIPATION A. (601) Certificate of Conformance If the Agency determines that the use of specific real property within the Project Area meets the requirements of the Plan, and the owners of such properties desire to continue such use or uses, the owner and the Agency may execute a Certificate of Conformance. A Certificate of Conformance shall provide, among other things, that the owners shall continue to operate and use the real property in accordance with the requirements of the Plan. B. (602) Owner Participation Agreements The Agency is authorized to enter into an Owner Participation Agreement regarding properties not purchased or not to be purchased by the Agency and not included in an Agency determination of conformance. Each agreement will contain provisions necessary to ensure that the participation proposal will be carried out and that the subject property will be developed or used in accordance with the conditions, restrictions, rules, and regulations of the Plan and the agreement. Each agreement will require the participant to join in the recordation of such documents as the Agency may require in order to ensure such development and use. C. (603) Statement of Interest Before making offers to purchase property in the Project Area, the Agency shall notify the owners of any such properties by certified mail, return receipt requested, that the Agency is considering the acquisition of such property. The Agency shall include a form entitled "Statement of Interest In Participating" (see Appendix), herein referred to as "Statement," with the notification. Within 30 days of receipt of such notification, any owner interested in participating in the Project Area shall file a "Statement of Interest In Participating." The Agency may disregard any Statements received after such 30 -day period. Any owner or tenant may also submit such a Statement at any time before such notification. The Agency shall consider such Statements as are submitted on time and seek to develop reasonable participation for those submitting such Statements whether to stay in place, to move to another location, to obtain preferences to reenter the Project Area, etc. SECTION VII. (700) ENFORCEMENT In the event a property is not developed or used in conformance with the Plan, or in conformance with a Certificate of Conformance or an Owner Participation Agreement, then the Agency is authorized to (1) acquire the property, (2) acquire any interest in the property sufficient to obtain conformance, or (3) take any other appropriate action to obtain such conformance. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March 11, 1997 5 Owner Participation Rules SECTION VIII. (800) PROCEDURES FOR AMENDING PARTICIPATION RULES The Agency may amend these Rules at any meeting held after their adoption. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency M arch Il, 1997 6 Owner Participation Rules APPENDIX STATEMENT OF INTEREST FOR PARTICIPATION IN THE DIAMOND BAR REDEVELOPMENT AGENCY DIAMOND BAR ECONOMIC REVITALIZATION AREA I hereby express my interest in participating in the Diamond Bar Economic Revitalization Area: 1. Name of Property Owner/Tenant: Phone: 2. Home Address: 3. Address of Property owned or rented in the Project Area: 4. Name of business in the Project Area: Phone: 5. I own ( ); am a tenant ( ); and wish to rehabilitate ( ); build ( ); sell ( ) my present property. If tenant, indicate: month-to-month ( ); or lease ( ); expiration date of lease:_ 6. My present type of business is: 7. Nature of proposed participation: I understand that submission of this Statement of Interest does not in any way obligate me to participate in the Project. Signed:_ Title: Date: DiambarVtatint Return to: Diamond Bar Redevelopment Agency 21660 East Copley Drive, Suite 100 Diamond Bar, California 91765-4177 Diamond Bar Redevelopment Agency 21660 Fact Copley Drive. Suite 100 Diamond Bar, CA 917654177 (909) 396-5666 a mond Bar Redevelopment Agency 'jjij1j&�V-.jjjq(0rV *11,45 • I - • :-•- - •• III . . . . . . . . . . Adopted on: - Resolution No. Prepared by: Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, CA 92705 (714)541-4585 (619) 967-6462 March, 1997 by METHOD OF RELOCATION FOR THE DIAMOND BAR REDEVELOPMENT AGENCY DIAMOND BAR ECONOMIC REVITALIZATION AREA In the adoption and implementation of the Redevelopment Plan for the Diamond Bar Economic Revitalization Area (the "Plan"), the Diamond Bar Redevelopment Agency, operating as a redevelopment agency (herein referred to as "Agency") is the public agency responsible for relocation. The Diamond Bar Economic Revitalization Area (the "Project Area") includes areas generally bounded by Highland Valley Road on the north, the southernmost City limits on the south, Summitridge Drive on the east, and the City limits on the west. Sections 33352(f) and 33411 of the California Community Redevelopment Law (the "Redevelopment Law") require that the Agency prepare a method or plan for the relocation of families and persons who may be temporarily or permanently displaced from housing facilities located within the Project Area, and nonprofit local community institutions to be temporarily or permanently displaced from facilities actually used for institutional purposes in the Project Area. The Agency will meet its relocation responsibilities through the use of its staff and consultants, supplemented by assistance from local realtors, social agencies, and civic organizations. The Agency does not anticipate that implementation of the Plan will dislocate businesses, residents, or local community institutions; however, it may be necessary for the Agency to undertake relocation actions at some time during project implementation. Specific businesses, residents, or local community institutions to be relocated cannot be identified at this time. If relocation activities are undertaken, the Agency will handle those relocation cases which result from project activities on an individual case-by-case basis. As provided in Section 33411.1 of the Redevelopment Law, the Agency shall not displace persons or families of low and moderate income unless and until there is a suitable housing unit available and ready for occupancy by such displaced person or family at rents comparable to those at the time of their displacement. If relocation is necessary, all site residents will be rehoused with a minimum of hardship; in accommodations which are decent, safe, sanitary and suitable to their individual needs; located in areas not less desirable than the Project Area in regard to public utilities and public and commercial facilities; reasonably accessible to their places of employment; and priced within their financial means. The Agency is required to adhere to the State Relocation Law (Government Code 7260 through 7277) and follow the California Relocation Assistance and Real Property Acquisition Guidelines ("State Guidelines") as established in the California Code of Regulations, Title 25, Chapter 6. In 1989, the State Relocation Law was amended by Assembly Bill 324 to conform the State Relocation Law with federal regulations. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 1 Method of Relocation Therefore, in conformance with Sections 33352(f) and 33411 of the Redevelopment Law, the Agency adopts, as its "Method of Relocation," the State Guidelines and the State Relocation Law. A copy of the State Guidelines and the State Relocation Law is on file in the offices of the City Clerk/Agency Secretary and attached hereto as Exhibit A and Exhibit B and incorporated herein by reference. Prior to commencement of any acquisition activity which will cause substantial displacement of residents, the Agency will adopt a specific relocation plan in conformance with the State Guidelines. To the extent appropriate, the Agency may supplement those provisions provided in the State Guidelines to meet the particular relocation needs of a specific project. Such supplemental policies will not involve reduction, but instead enhancement, of the relocation benefits required by State Law. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 2 Method of Relocation EXHIBIT A STATE GUIDELINES Barclays Oficial CALIFORNIA CODE OF REGULATIONS Title 25. Housing and Community Development Division 1. Housing and Community Development Chapter 6. Department of Housing and Community Development Programs Vol. 33 Published by BARCLAYS LAW PUBLISHERS 400 Oyster Point Boulevard Post Office Box 3066 South San Francisco, CA 94080 (415)244-6611 Tide 25 Department of Housing and Community Development Programs Table of Contents Chapter 6. Department of Housing and Community Development Programs TABLE OF CONTEN-M Page page Subchapter 1. Relocation Assistance § 8098. Alternate Payments -Individuals and Real Property and Families. Acquisition Guidelines 261 §6100. Alternate Payments -Businesses Article 1. General and Farm Operations. § 6000. Order of Adoption 261 § 8102. Replacement Housing Payments § 6002. § 6004. Statement of Purpose and Policy. Applicability and Supersedure. § 6104. for Homeowners. Replacement Housing Payments § 6006. § 6008. Regulations. Definitions, §6106. for Tenants and Certain Others. Proration of Payments. § 6010. Prior Determinations. §6108. Condition of Replacement § 6012. § 6014. Citizen Participation. Prerequisite to Displacement § 8110. Dwelling. Certificate of Eligibility. § 6016. § 6018. Remedies. Priority of Federal Law. § 6112. § 6114. Mobile Homes. Affected Property. § 6020. Severability. Article 4. Last Resort Housing 274 Article 2. Relocation Assistance § 6120. §6122. Purpose. Determination of Need for Last Advisory Program and Resort Housing. Assurance of Comparable 66124. Development of Replacement Replacement Housing 264 Housing Plan. § 6030. Purpose. § 6126. Submission of Plan for § 6032. Relocation Assistance Advisory Comment Program. § 6128. Determination by Displacing § 6034• Eligibility. Public Entity of Feasibility and § 5036. Rehabilitation, Demolition, Code Compliance, Enforcement. § 6130. Implementation of the § 6038. Relocation Plan. Replacement Housing Plan. § 6040. Minimum Requirements of § 6132. Housing Production. Relocation Assistance Advisory § 6134. Jointly Sponsored Development. Program. J8136. Last Resort Housing In Lieu of § 6042. Replacement Housing Prior to Payments. Displacement; Notices to § 6138. Conformity with the Act and Displaced Persons. Other Statutes, Policies and § 6044. Temporary Move. Procedures. § 6046. § 6048. Informational Program. Survey and Analysis of Article 5. Grievance Procedures 275 § 6050. Relocation Needs. Failure to Conduct Timely and § 6150. § 6152. Purpose. Right of Review. Effective Survey. § 6154. Notification to Complainant. § 6052. Survey and Analysis of Available § 6156. Stages of Review by a Public § 6054. Relocation Resources. Last Resort Housing. § 6158. Entity. Formal Review and § 6056. Termination of Relocation Reconsideration by the Public § 6058. Assistance. Eviction. § 6180. Entity. Refusals Waive Time § 6060• Evaluation of Relocation. § 5162. Limitation.. Extension of Time Limits. Article 3. Relocation Payments 268 § 6164• Recommendations by Third § 6080. Purpose. Party. § 6082. Relocation Payments by Public § 6166. Review of Files by Claimant. Entity. § 6168. Effect of Determination on Other § 6084. Basic Eligibility Conditions. Persons. § 6086. Notice of Intent to Displace. § 6170. Right to Counsel. § 6088. Filing of Claims; Submission of § 6172• Stay of Displacement Pending Tax Returns. Review. § 6090. Actual Reasonable Moving § 6174. Joint Complainants. Expenses. § 5175. Judicial Review. § 6092. Actual Direct Losses of Tangible Personal Property. Article 6. Acquisition Policies 276 § 6094. Actual Reasonable Expenses in § 61 so. § 6182. Purpose. Acquisition. Searching for a Replacement Business Business or Farm. § 6184. Notice of Decision to Appraise. § 5M. Expenses-Outdoor § 6186. § 6188. Time of Offer. Notice of Land Acquisition Advertising Businesses. Procedures. oi. (.ontents _wL����x J I,ALIFORtiIA CODE OF REGULATIONS Title 25 h -s. Page §8190. Notice cd Pubik; Entity's Deciwn Not to , koquire. Subchapter 4. Housing Element Guidelines 279 §6192. Incidertal Expenses. Subchapter 5. Department of Housing and § 8194. short le rm Rental. Community § 8195. Public: nformat on. Development—Conflict of § 8196. Service of Notk)e. Interest Code 279 § 8198. Nonpcme 33ory Interest § 8500. General Provisions. Excepton. Appendix A 280 Subchapter 2. California Low—Income Appendix B 280 Home Manag-ament Training Program 279 Subchapter 3. Housing Eerrent Guidelines 279 Page H (12-31-93) Title 25 Department of Housing and Commanity Development Programs g 6008 Chapter 6. Department of Housing and Community Development Programs Subchapter 1. Relocation Assistance and Real Property Acquisition Guidelines Article 1. General § 6000. Order of Adoption. This subchapter (hereinafter referred to as the "Guidelines')is adopted pursuant to the provisions of Section 41135, Health and Safety Code, in order to implement, interpret and to make specific provisions of Division 7, commencing with Section 7260 of the Government Code (hcrtinaftcr referred to as the "Act"), relating to relocation assistance, last resort housing and real property acquisition. Nom Authority cited for Chapter 6: Sections 41134, 41135, and 41226, Helm and Safery Code. Reference: Section 7260 et seq., Government Cade; 41134, 41135, and 41226, Hcahh and Safety Code. RSipRY 1. Amendment filed 11-5-76 as an emergency; designated effective 11-27-76 (Register 76, No. 44). For prior history, see Register 76, No. 44. 2. Redesignation of Chapter 6 (Sections 6000•-6198, not consecutive) to Chapter 6,Subchapter I (Sections 6000-6198,n0tc0nscc-uuv0fikd I-28-77asproce- dur2l and organizational; effective upon }icing (Register 77 No. 5). 3. Amendment filed 1-23-77 As procedural and organizational; effective upon fil- ing (Register 77, No. 5). 4. Certificate of Compliance as to filing of 11-5-76 filed 2-16-77 (Register 77, No. 8). § 6002. Ststement of Purpose and Policy. (a) The purpose of the Guidelines is to assist public entities in the de- velopmcnt of regulations and procedures implementing the Act (b) The Guidelines are designed to carry out the following policies of the Act: (1) To ensure that uniform, fair and equitable treatment is afforded per- sons displaced from thew homes, businesses or farms as a result of the ac- tions of a public entity in order that such persons shall not suffer dispro- portionatc injury as a result of action taken for the benefit of the public as a whole; and (2) In the acquisition of real property by a public entity, to ensure con- sistent and fair treatment for owners of real property to be acquired, to encourage and expedite acquisition by agreement with owners of such property in order to avoid litigation and relieve congestion in courts, and to promote confidence in public land acquisition. (c) A public entity shall not participate in or undertake a project that will displace individuals from their homes unless comparable replace- ment dwellings (see subsection 6008(c)) will be available within a rea- sonable period of time prior to displacement (d) The Guidelines are intended to establish only minimum require- ments for relocation assistance and payments. The not be con- strued to limit any othaauthority orobligation which a public—chtity may have to provide additional assistance and payments. (e) The Act and the Guidelines are intended for the benefit of displaced persons, to ensure that such persons roaivc fair and equitable treatment and do not sufferdisproportionate injuries as the result of programs de- signed for the benefit of the public as a whole. The Act, Guidelines and all applicable regulations on which determinations are based shall be con- strued to effect this intent. § 6004. Appiicabllity and Supersedure. (a) (1) Except as otherwise noted in this section, the Guidelines are applicable to all displacement and acquisition occurring on or after their effective date, January I, 1977. A public entity may determine that the Guidelines shall at an earlier date be applicable to its displacement and acquisition. (2) With respect both to redevelopment activities undertaken pimant to a plan or amendment adopted priorto January 1, 1976 and to the acqui- sition of real property located within the California coastal zone (as de. fined in Public Resources Code, Section 30103, Stats. 1976, e. 1330) for use as pant lands or open space, the provisions of the Guidelines specifi. tally relating to last resort housing shall not be effective until January 1, 1978. (b) These Guidelines supersede those adopted by the Commission of Housing and Community Development on October 17, 1973. The guide- lines so superseded shall not apply to any displacement or acquisition cc - cur -ring on or after the effective date of these Guidelines. Any such dis- placement or acquisition shall be governed solely by these Guidelines. The provisions of these Guidelines, however, shall not be construed retroactively to apply to action(s) undertaken by it public entity prior to their effective date where the purpose of the action was to fulfill obliga- tions imposed by the Act and the action is in compliance with the require- ments of the Act and the existing Guidelines. For the purpose of this sec- tion the term "action" shall include but is not limited to: the provision of information, notice, other assistance, compatible replacement housing, payments and other benefits; the preparation of relocation and last resort housing plans, including the survey and analysis ofneeds and resourccs; the processing of grievances; and the various steps taken in connection with the acquisition of property for public use. HtsToaY 1. Auxndment of subsection (b) filed 11-5-76 as an emergency: designated ef- fective 11-27-76 (Register 76, No. 44). 2. Ccrtificate of Compliance filed 2-16-77 (Register 77, No. 8). § 6006. Regulations. (a) Each public entity before undertaking or participating in activity which will result in the displacement of persons shall adopt rules and reg- ulations that implement the requirements of the Act, are in accordance with the provisions of the Guidelines, and prescribe additional proce- dures and requirements that are appropriate to the particular activities of the public entity and not inconsistent with the Act or Guidelines. (b) Rules and regulations issued under this section shall be promptly revised as necessary, to conform to any amendment of the Act or Guide- lines. § 6008. Definitlons. The following terms shall mean: (a) Acquisition. Obtaining ownership or possession of property by lawful means. (b) Business. Any lawful activity, except a farm operation, conducted primarily: (1) For the purchase, sale, lease, oriental of personal and real property, and for the manufacture, processing, or marketing of products, eommodi- tics, or any other personal property; (2) For the We of services to the public; (3) By a nonprofit organization-, or (4) Solely for the purpose of a moving expense payment (see section 6090), for assisting in the purchase, sale, resale, manufacture, process- ing, or marketing of pro -ducts, commodities, personal property, or ser- vices by the erection and maintenance of an outdoor advertising display, whether or not such display is located on the premises on which any of the above activities art conducted. (c) Comparable Replacement Dwelling. A dwelling which satisfies each of the following standards: (1) Decent, safe and sanitary (as defined in subsection 6008(d)), and comparable to the acquired dwelling with respect to number of rooms, habitable living space and type and quality of construction, but not lesser in rooms or living space than necessary to accommodate the displaced person. (2) In an area not subjected to unreascnable adverse environmental conditions from either natural or manmade sources, and not generally Paee 261 (LI -X) $ 6008 BARCLAYS CALIFORNIA CODE OF REGULATIONS Title 25 kss desirable than the acquired dwelling with respect to public utilities. public and commercial facilities and neighborhood conditions, including schools and municipal smites, and reasonably accessible to the dis- placed person's present or potential place of employment; provided that a potential place of employment may not be used to satisfy the accessibil- ity requirement if the displaced person objects. The Act and Guidelines do not require that the replacement dwelling be ge nemUy as desirable as the acquired dwelling with respect to environ- mental characteristics.Though a displaced person does not have to accept "dwelling subject to unreasonable adverse environmental conditions, neither is a public entity required to duplicate environmental charactcris- tics, such as scenic vistas or proximity to the ocean, lakes, rivers, forests ar other natural phenomena. If the displaced person to wishes, every reasonable effort shall be made to relocate such person within or near to his existing neighborhood. Wherever practicable the replacement dwelling shall be reasonably close to relatives, friends, services or organizations with whom there is an existing dependency relationship. (3) Available on the private market to the displaced person and avail- able to all persons regardless of race, color, sex, marital status, religion, or national origin in a manna consistent with Title VIII of the Civil Rights Act of 1968. (4) To the extent practicable and where consistent with paragraph (c)(1) of this section, functionally equivalent and substantially the same as the acquired dwelling, but not excluding newly constructed housing. (5) Within the Financial Means of the Displaced Person. A replace- ment dwelling is within the financial means of a displaced person if the monthly housing cost (including payments for mortgage, insurance and property talcs) orrcntal cost (including utilities and other reasonable re. curring expenses) minus any replacement housing payment available to the person (as provided in sections 6102 and 6104) does not exceed twen- ty-five percent (25%) of the person's average monthly income (as dc - fined in subsection 6008(1)). A replacement dwelling is within the finan- cial means of a displaced person also if the purchase price of the dwelling including related in ascd interest costs and other reasonable expenses (as described in section 6102) does not exceed the total of the amount of just compensation provided for the dwelling acquired and the replace- ment housing payment available to the person (as provided in section 6102). If a dwelling which satisfies these standards is not available the public entity may consider a dwelling which exceeds them. (d) Decent, Safe and Sanitary. (1) Housing in sound clean and weather tight condition, in good repair and adequately maintained, in conformance with the applicable state and local building, plumbing, electrical, housing and occupancy codes or similar ordinances or regulations and which meets the following mini- mum standards: (A) Each housekeeping unit shall include a kitchen with a fully usable sink a stove or connection for a stove, a separate and complete bathroom, hot and cold running water in both bathroom and kitchen, an adequate and safe wiring system for Lighting and other electrical services and heating as required by climatic conditions and local codes. (B) Each nonhousckccping unit shall be in conformance with state and local code standards for boarding houses, hotels and other dwellings for congregate living. (2) When the term decent, safe and sanitary is interpreted, under local, state or federal law, as establishing a higher standard, the elements of that higher standard, which exceed the provision of paragraph (1) of this sub- section, are incorporated herein. (e) Department. Department of Housing and Community Develop- ment. (f) Displaced Perron. Any person who moves from real property, or who moves his personal property from real prQperty, either as a result of the acquisition of such real property, in whole or in part, by a public entity or by any person having an agreement with or acting on behalf of a public entity, or as the result of a written order from a public entity to vacate the real property, for public use. This definition shall be construed so that persons displaced as a result of public action receive relocation benefits in casts where they are dis. placed as a result of an owner participation agreement or an acquisition carried out by a private person for or in connection with a public use where the public entity is otherwise empowered to acquire the property to carry out the public use. (g) Dwelling. The place of permanent or customary and usual abode of a person, including a single-family dwelling, a single-family unit in a two-family dwelling, multi -family ormultipurpose dwelling, a unit of a condominium or cooperative housing project, a nonhousekeeping unit, a mobilehome, or any other residential unit which either is considered to be real property under State law or cannot be moved without substantial damage or unreasonable cost A residence treed not be decent. safe and sanitary to be a dwelling. A second home shall be considered to be a dwelling only for the pur- pose of establishing eligibility for payment for moving and related ex- penses (as provided in section 6090). (h) Economic Rent. The amount of rent a tenant or homeowner would have to pay for a dwelling similar to the acquired dwelling in a compara- ble arca. (i) Elderly Household. A household in which the head of household or spouse is 62 years or older. 6) Family. Two ormom individuals who by blood, marriage, adoption, or mutual consent live together as a family unit. (k) Farm Operation. Any activity conducted solely or primarily forthe production of one or more agricultural products orcommodities, includ- ing timber, for sale or home use, and customarily producing such prod- ucts or commodities in sufficient quantity to be capable of contributing materially to the operator's support. (1) Gross Income. Gross income means the total annual income of an individual, or where a family is displaced total annual income of the par. ents or adult heads of household, less the following: (1) A deduction of $500 for each dependent in excess of three. (2) A deduction of ten percent (10%) of total income for an elderly or handicapped household. (3) A deduction for recurring, extraordinary medical expenses, de- fined for this purpose to mean medical expenses in excess of three percent of total income, where not compensated for or covered by insurance or other sources, such as public assistance or tort recovery. (4) A deduction of reasonable amounts paid for the care of children or sick or incapacitated family members when determined to be necessary to employment of the head or spouse, except that the amount deducted shall not exceed the amount of income received by the person thus re- lcased. Gross income is divided by twelve to ascertain the average monthly income. Relocation and property acquisition payments are not to be con- sidered as income for the determination of financial means. (m) Handicapped Household. A household in which any member is handicapped or disabled. (n) Initiation of Negotiations. The initial written offer made by the ac- quiring entity to the owner of real property to be purchased, or the own- er's representative. (o) Mobile Home. A structure, transportable in one or more sections, which is built on a permanent chassis and designed to be used as a dwell- ing with or without a permanent foundation when connected to the re- quired utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein. A self-propelled vehicle is not a mobile home. (p) Mortgage. Such classes of liens as are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby. (q) Ownership. Holding any of the following interests in a dwelling. or a contract to purchase one of the first six interests: Page 262 (4-1_90) Title Z5 Department of Housing and Community Development Pmgrams § 6020 (1) A fee title. (2) A life estate. (3) A 50 -year lease. (4) A lease with at least 20 years to tun from the date of acquisition of the property. (5) A proprietary interest in a cooperative housing project which in- cludes the right to occupy a dwelling. (6) A proprietary interest in a mobilehome. (7) A kaschold interest with an option to purchase. In the cue of one who has succeeded to any of the foregoing interests by devise, bequest, inheritance or operation of law, the tenure of ownter- ship, but not occupancy, of the succeeding owner shall include &,e tenure of the preceding owner. (r) Person. Any individual, family, partnership, corporation, cr associ- ation. (s) Public Entity. Includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, pub- lic agency, and any otherpolitieal subdivision or public corporation in the state wben acquiring real property, or any interest therein, or ordering that acquired property be vacated, in any city or county for public use. (t) Public Use. A use for which property may be acquired by eminent domain. (u) Tenant. A person who rents or is otherwise in lawful possession of a dwelling, including a sleeping room, which is owned by another. §6010. Prior Determ [nations. (a) Displaccment. No public entity may proceed with any phase of a project or other activity which will result in the displacement of any per- son, business or farm until it makes the following determinations (1) Fair and reasonable relocation payments will be provided to eligi- ble persons as required by Article 3 of the Guidelines. (2) A relocation assistance program offering the services described in Article 2 of the Guidelines will be established. (3) Eligible persons will be adequately informed of the assistance, benefits, policies, practices and procedures, including grievance procc- duns, provided for in these Guidelines. (4) Baud upon recent survey and analysis of both the housing needs of persons who will be displaced and available replacement housing and considering competing demands for that housing, comparable replace- ment dwellings will be available, or provided, if necessary, within a rea- sonable period of time prior to displacement sufficient in number, size and cost for the eligible persons who require them. (5) Adequate provisions have been made to provide orderly, timely, and efficient relocation of eligible persons to comparable replacement housing available without regard to race, color, religion, sex, marital sta- tus, or national origin with minimum hardship to those affected. (6) A relocation plan meeting the requirements of section 6038 has ban p=parcd. (b) Acquisition. Nopubiic entity tray proceed with anyphase of aproj- cct or any other activity which willresult in the acquisition of real proper- ty until it determines that with respect to such acquisition and to the grcat- est extent practicable, (1) Adequate provisions have ban made to be guided by the provi- sions of Article 6 of the Guidelines, and (2) Eligible persons will be informed of the pertinent benefits, policies and requirements of the Guidelines` Hist w -t 1. Anxndmeat of subsection (b) filed 11-5-76 as an emergency; designated ef- fective 11-27-76 (Register 76, No. 44). 2. Certificate of Compliance filed 2-16-77 (Register 77, No. 8). § 6012 Citizen PartIclpatlon. (a) All persons who will be displaced, neighborhood groups and any relocation committee shall be given an opportunity and should be cacour- aged fully and meaningfully to participate in reviewing the relocation plan and monitoring the relocation assistance program. (b) When a substantial number of parsons will be displaced from their dwellings the public entity shall encourage the residents and community organizations in the displacement area to form a relocation comminu. The committee shall include, when applicable, residential owner occu- pants, residential tenants, business people, and members of existing orga. nizations within the arra. In lieu of initiating a new process of citizen par. ticipation, public entities which have conducted or ars conducting a citizen participation process as part of an existing development program may substitute such process if it satisfies the requirements of this section. If a substantial number of persons will not be displaced from their dwellings, the public entity shall at least consult with and obtain the ad. vice of residents and community organizations and make the relocation plan available to such persons and organizations prior to submitting it to the legislative body for approval. (See section 6038.) (c) At a minimum the displacing entity shall guarantee the following; (1) Timely and full access to all documents relevant to the relocation program. A public entity may reasonably restrict access to material where its confidentiality is protected by law orits disclosure is prohibited by law. The displacing entity shall ensure that the information in documents the provision of which would result in disclosure of the identity of eligible parsons is provided in a manner designed to avoid such disclosure. This obligation to avoid improper disclosure shall not affect the right of the person to which the information relates (or any other person authorized in writing by such person) to inspect such documents. (2) The provision of technical assistance necessary to interpret ele- ments of the relocation plan and other pertinent materials. (3) The right to submit written or oral comments and objections, in- cluding the right to submit written comments on the relocation plan and to have these comments attached to the plan when it is forwarded to the local legislative body or the head of the state agency for approval. (4) Prompt, written response to any written objections or criticisms. § 6014. Prerequisite to Displacement. No person shall be displaced until the public entity has fulfilled the ob- ligations imposed by the Act and Guidelines. ¢ 6016. Remedies. (a) If the public entity has not fulfilled or is not substantially fulfilling its relocation responsibilities, it shall cease displacement until such time as its responsibilities are fulfilled. When appropriate project implemen- tation shall be suspended or terminated. (b) Eligible persons who move without offers of assistance and benc- fits, after the public entity was required to offer assistance or benefits, shall be provided such assistance and payments and, when appropriate, compensation for additional costs incurred. The displacing entity shall make every effort to identify and locate such persons. (c) A public entity may pay a complainant's attorney's fees and costs and is encouraged to consider doing so when a complainant institutes a successful administrative appeal or judicial action. (d) The enumeration of remedies in this section is not intended to dis- courage or preclude the use of other remedies consistent with the intent of the Act and Guidelines. Rather a public entity is encouraged to consid- er and adopt other remedies. ¢ 6018. Priortty of Federal Law. if a public entity undertakes a project with federal financial assistance and consequently must provide relocation assistance and benefits as re- quired by federal law, the provisions of the Act and Guidelines shall not apply; but if an obligation to provide relocation assistance and benefits is not imposed by federal law the provisions of the Act and Guidelines shall apply. § 6020. 3everabliq. If any provision of the Guidelines or the application thereof is held in- valid, such invalidity shall not affect other provisions or applications of the Guidelines which can be given effect without the invalid provision or application, and to this end the provisions of the Guidelines ate severable. Page 263 (L -t-90) § 6030 BARCLAYS CALIFORNIA CODE OF REGULATIONS Title 25 Article 2. Relocation Assistance Advisory Program and Assurance of Comparable Replacement Housing § 6030. Purpose. The purpose of this part is to set forth requirements with respect to the development and implementation of arclocation assistance advisory pro- gram for the provision of specified services and to prescribe the obliga- tion of a public entity not to displace or cause the displacement of any per- son from his dwelling without adequate notice and unless comparable replacement housing is available. § 6032. Relocation Assistance Advisory Program. Public entities shall develop and implement a relocation assistance ad- visory program which satisfies the requirements of this article and of Title VI of the Civil Rights Actof 1964, Titic VIII of the Civil Rights Act of 1968, the Unruh Civil Rights Act and the Rumford Act- Such program shall be administered so as to provide advisory services which offer max- imum assistance to minimize the hardship of displacement and to ensure that (a) all persons displaced from their dwellings are relocated into hous- ing meeting the criteria for comparable replacement housing, and (b) all persons displaced from their places of business or farm operations are as- sist,ed in reestablishing with a minimum of delay and loss of earnings. § 6034. Eligibility. (a) Relocation assistance and benefits shall be available to: (1) Any person who occupies property from which he will be dis- placed. (2) Any person who will move from teal property orwill move his per. sonal property from real property, because he will be displaced from oth- cr real property on which he conducts a business or farm operation. (3) Any person who moves from real property as a result of its acquisi- tion by a public entity whether the move is voluntary or involuntary. (4) Any person who, following the initiation of negotiations, moves as the result of the pending acquisition. Such a person is eligible if the prop- erty is subsequently acquired by the public entity; if this is not acquired, such a person, at the discretion of the public entity, may be declared eligi- ble. (5) Any person who moves as the result of pending acquisition by a public entity either following receipt of a Notice of Intent to Displace (see section 6086) oras aresult of inducement orencouragement by the public entity. (b)(1) Post—acquisition tenants, those who lawfully occupy property only after a public entity acquires it, arc not eligible for assistance and benefits if. before occupying the property. they are informed by the pub- lic entity that the property has been acquired for a public use and will be available as housing only in the interim between acquisition and develop- ment and that development for such use may result in termination of the tenancy sooner than would otherwise be expected. When post—acquisi- tion tenants arc so informed that they are not eligible even though they move as the result of a written order from the public entity to vacate the real property. A public entity shall inform prospective tenants regarding the pro- jected date of displacement and, periodically, should inform postacqui- sition tenants of any changes in this projection. Persons who become post—acquisition tenants after the effective date of the Guidelines, who aro not so informed and who move as the result of a written order from the public entity to vacate art eligible for assis- tance and benefits, except where they are evicted in accordance with the provisions of section 6058. (2) When the displacement of a post—acquisition tenant causes a hard- ship for that person because of a critical housing shortage, age, handicap, infirmity, lack of financial means or other circumstance, the displacing entity may provide relocation assistance and benefits. In such hardship situations apublic entity is encouraged to provide assistance and payment for moving expenses. (3) Where a public entity, or property it owns, is making housing avail- able on a permanent basis (i.e., not pending development), a post—ecqui- sition tenant who moves as the result of a written order from the public entity to vacate is eligible for relocation assistance and benefits if the or- der to vacate is related to a plan to demolish or mhabilitate such units. Sale of such units to a private person establishes eligibility without need for a written order to vacate. § 6036. Rehabilitation, Demolition, Code Enforcement If a public entity undertakes a rehabilitation or demolition program or enforcement of building codes and as a result a person or business is dis- placed from privately owned property, the public entity may provide as- sistance and benefits, but it is not required to do so. If a person or business is displaced by such an undertaking from property acquired by a public entity, the public entity shall provide assistance and benefits. § 6038. Relocation Plan. (a) As soon as possible following the initiation of negotiations and prior to proceeding with any phase of a project or other activity that will result in displacement a public entity shall prepare a Relocation Plan and submit it for approval to the local legislative body, or in the case of a state agency, the head of the agency. When the public entity's action will only result in an insignificant amount of non—residential displacement, the ter quirements of this section need not be satisfied. (b) A Relocation Plan shall include the following: (1) A diagrammatic sketch of the project area. (2) Projected dates of displacement. (3) A wiimen analysis of the aggregate relocation needs of all persons to be displaced (as required by section 6048) and a detailed explanation as to how these needs arc to be met (4) A written analysis of relocation housing resources (as required by section 6052). (5) A dcWled description of the relocation advisory services program, including specific procedures for locating and referring eligible persons to comparable replacement housing. (6) A description of the relocation payments to be made (pursuant to Article 3) and a plan for disbursement (7) A cost estimate for carrying out the plan and identification of the source of the necessary funds. (8) A detailed plan by which any last resort housing (as described in section 6054 and Article 4) is to be built and financed. (9) A standard information statement to be sent to all persons to be dis- placed (as required by section 6046). (10) Temporary relocation plans, if any. (11) A description of relocation office operation procedures. (12) Plans for citizen participation. (13) An enumeration of the coordination activities undertaken (pur- suant to section 6052). (14) The comments of the relocation committee, if any (pursuant to section 6012). (15) A written determination by the public entity that the necessary re- sources will be available as required. (c) A Plan prepared by a local public entity shall be consistent with the local housing element (prepared pursuant to California Administrative Code, Title 25, Chapter 6, Subchapter 3.) (d) In the event of delay of implementation of the relocation program, the plan shall be updated annually. (c) (1) Copies of the plan shall be submitted forrcview to the relocation committee and the department 30 days prior to submission to the local legislative body or head of state agency for approval. Copies shall be available to the public upon request. (2) General notice of the plan shall be provided. Notice shall be de- signed to reach the occupants of the property; it shall be in accordance Page 264 (41-M Title 25 Department of Housing and Community Development Programs 06044 with the provisions of paragraph 6046(a)(3) and subsection 6046(b); and it shall be provided 30 days prior to submission to the local legislative body or head of state agency for approval. HtsrottY I. Amendment of subsection (c) filed 1-28-77 as procedural and orgwiizational; effective upon filing (Register 77, No. 5). ¢ 8040. Minimum Requirements of Relocation Aaslstance Advisory Program. (a) Each relocation assistance advisory program undertaken pursuant to this Article shall include, at a minimum, such measures, facilities or services as may be neecssary or appropriate in order to: (1) Fully inform eligible persons under this Article within 15 days fol- lowing the initiation of negotiations for a parcel as to the availability of relocation benefits and assistance and the eligibility requirements there- for, as well as the procedures for obtaining such benefits and assistance, in accordance with the requirements of section 6046. (2) Determine the extent of the need of each such eligible person for relocation assistance in accordance with the requirements of section 6048. (3) Assurc eligible persons that within a reasonable period of time prior to displacement there will be available comparable replacement housing, meeting the criteria described in section 6008(c), sufficient in number and kind for and available to such eligible persons. (4) Provide current and continuing information on the availability, prices, and rentals of comparable sales and rental housing, and of compa- rable commercial properties and locations, and as to security deposits, closing costs, typical down payments, interest rates, and terms for msi- dential property in the area. (5) Assist each eligible person to complete applications for payments and benefits. (6) Assist each eligible, displaced person to obtain and move to acom- parable replacement dwelling. Only adequate inspection will insure that a particular unit meets this standard. If a displaced person occupies a unit to which he is referred by the public entity and the unit does not satisfy the comparable replacement dwelling standard, the public entity has not fulfilled its obligation to assist the displaced person to obtain such a dwelling. Whenever this occurs the public entity shall offerto locate such a dwelling forthe displaced person and to pay again all moving and related expenses. If the displaced person chooses not to move from the unit that he occupied following referral, the public entity shall not assert that he is ineligible to receive relocation as- sissrxc and benefits on the basis of that unit's failure to satisfy the com- parable replacement dwelling standard. (7) Assist each eligible person displaced from his business or farm op- eration in obtaining and becoming established in a suitable replacement location. (8) Provide any services required to insure that the relocation process docs not result in different or separate treatment on account of race, color, religion, national origin, sex, marital status or other arbitrary circum- stances. (9) Supply to such eligible persons information concerning federal and state housing programs, disaster loan and other programs administered by the Small Business Administration, and other federal or state pro- grams, offering assistance to displaced persons. (10) Provide other advisory assistance to eligible persons in order to minimize their hardships. It is recommended that, as needed, such assis- tance include counseling and referrals with regard to housing, financing, employment, training, health and welfare, as well as other assistance. (I1) Inform all persons who arc expected to be displaced about the eviction policies to be pursued in carrying out the project, which policies shall be in accordance with the provisions of section 5058. (b) Relocation Office. When a substantial number of persons will be displaced and the reloca- tion staff's office is not easily accessible to those persons, a displacing entity is encouraged to establish at least one appropriately equipped site office which is accessible to all the area residents who may be displaced and is staffed with trained or experienced relocation personnel. Office hours should be scheduled to accommodate prions unable to visit the of- fice during normal business holm. (c) Each displacing entity shall establish and maintain it formal griev- ance procedure for use by displaced persons seeking administrative r, view of the entity's determinations. The procedure shall be in accordance with the requirements of Article 5. §6042. Replacement Housing Prior to Displacement; Notices to Displaced Persons. (a) No eligible person shall be required to move from his dwelling un- less within a reasonable period of time prior to displacement comparable replacement dwellings (as defined in subsection 6008(c)) or, in the case of a temporary move (as defined in section 6044), adequate replacement dwellings (as defined in subsection (b) below) are available to such per- son. (b) The criteria for adequate replacement dwellings are in all respects identical to those for comparable. replacement dwellings, except that an adequate replacement dwelling, with respect to the number of rooms, habitable living space and type of construction, need be onlyadequate not comparable. (c) Reasonable Offer of Replacement Housing. The requirements of this section shall be deemed to have been satisfied if a person is offered and refuses without justification reasonable choices of specifically identified comparable replacement dwellings which fully satisfy the criteria set forth in the Guidelines. The offers shall be in writ- ing, in a language understood by the displaced person. The number of of- fers determined to be reasonable should be not less than three. (d) Notice. No eligible person occupying property shall be required to move from a dwelling or to move a business or farm operation, without at least 90 days written notice from the public entity requiring the displacements. Public entities shall notify each individual tenant to be displaced as well as each owner -occupant. (Riese requirements are in addition to those contained in sections 6040 and 6046.) (e) Waiver. The requirement in subsection (a) above may be waived only when im- mediate possession of real property is of crucial importance and by one of the following circumstances: (1) When displacement is necessitated by a major disaster as defined in Section 102(2) of the "Disaster Relief Act of 1974' (88 Stat. 143, 42 U.S.C. 5121). (2) During periods of declared national or state emergency. ¢ 6G44. Temporary Move. (a) General. (1) A public entity shall be required to minimize to the greatest extent feasible the use of temporary relocation resources (as defined in section 6042) but, when a project plan anticipates moves back into completed project accommodations, temporary relocation resources may be used, at the displaced person's election for a limited period of time. (2) Temporary relocation does not diminish the responsibility of the pubic entity to provide relocation assistance. services and benefits de- signed to achieve permanent relocation of displaced persons into compa- rable replacement dwellings. (b) Requirements. (1) Temporary replacement housing may not be relied upon if compa- rable replacement housing will not be available to the displaced person within 12 months of the date of the temporary move. (2) Prior to the move, the public entity shall have determined and have provided written assurance to each displaced person that: (A) Comparable replacement housing will be made available at the earliest possible time but in any event no later than 12 months from the date of the move to temporary housing. Temporarily housed persons may agree to extend the 12 month limitation but, if they do not, the public enti- Page 265 t4-iaot 16046 BARCLAYS CALIFOPUNIA CODE OF REGULATIONS Title 25 ty shall ensure that comparable replacement dwellings aro available with. in the 12 month period. (B) Comparable replacement housing will be made available, on a priority basis, to the individual or family who has been temporarily ro- housed- (C) The move to temporary housing will not affect a claimant's eligi- bility for a replacement housing payment nor deprive him of the same choice of replacement housing units that would have been made available had the temporary move not been made and the costs of a temporary move will not be considered as all or a part of the relocation payments to which a displaced person is entided. (D) If a project plan anticipates moves back into replacement housing accommodations in the project or program area, the person who has been temporarily displaced will be given priority opportunity to obtain such housing accommodations. (E) The public entity will pay all costs in connection with the move to temporary housing, including increased housing costs. ¢ 6046. Informational Program. (a) Basic Requirements. The displacing entity shall establish and maintain an information pro- gram that provides for the following: (1) Preparation and distribution of informational material as early as practicable, to each occupant of the property. This material shall be dis- tributed within 15 days following the initiation of negotiations (see para- graph 6040(x)(1)) and not less than 90 days in advance of displacement except for those situations described in subsection 6042(e). Where ap- propriate, separate informational statements shall be prepared for resi- dcntial and for non-residential occupants. (2) Conducting personal interviews and maintaining personal contacts with occupants of the property to the maximum extent practicable. (3) Utilizing meetings, newsleners, and other mechanisms, including local media available to all persons, forkeeping occupants of the property informed on acontinuing basis. The criterion for selecting among various alternatives shall be the likelihood of actually communicating informa- tion to such persons. l cgal publications, legal ads in local newspapers of general circulation and similar means which may go unnoticed are deemed to be inadequate. (b) Language. Informational material should be prepared in the lan- guage(s) most easily understood by the recipients. In displacement areas where there are significant• concentrations of persons who do not read, write, or understand English fluently, the native language of the people should be used and all informational material should be provided in the native language(s) and English. (c) Method of Delivery. To assure receipt of the informational materi- al, the local agency should arrange to have the material cithcrhand-deliv- ercd to each occupant of the property with a request for a written r=ip4 or sent by certified mail, return receipt requested. (d) General and Specific Information. In addition to disseminating general information of the type described in this section, the displacing entity shall also provide each person with individual, written notification as soon as his eligibility status has been established. (e) Content of Informational Statement Attachment A identifies the kinds of information required to be included in statements distributed to occupants of the property. The figure lists minimum requirements. The displacing entity should include any additional information that it be- lieves would be helpful. (See Attachment A.) WIRY 1. Amendment of subsection (a)(1) fikd 11-5-76 as an emergeocy, designated effective 11-27-76 (Register 76, No. 44). 2. Certificate of Compliance filed 2-16-77 (Register 77, No. 8). ¢ 5048. Survey and Analysis of Relocation Needs. (a) (1) Requirement- Immediately following the initiation of negoti- ations interview all eligible persons, business cor=ms, including non- profit organizations, and farm operations to obtain information upon which to plan for housing and other accommodations, as well as counsel- ing and assistance needs. (2) Coordination with Other Agetroics. Other agencies may also be conducting surveys in the area at the same time. Coordination will be nce- essary to avoid duplication and to ensure that necessary information is available at the appropriate time. Surveys utilized to gatherdala for social &=vice referrals should be planned in cooperation with social service agencies and a referral system should be established. (3) Information to Persons to Be Displaced. The local agency shall carefully explain and discuss fully with each person interviewed the pur- pose of the survey and the nature and extent of relocation payments and assistance that will be made available. All persons shall be advised and encouraged to visit the relocation office for information and assistance. (4) Relocation Records. Based on information obtained during the sur- vey and other sources as applicable, the local agency shall prcpare and maintain an accurate relocation record for each person to be displaced. Lite record shall contain a description of the pertinent characteristics of the persons to be displaced and the assistance deemed to be necessary. (b) Thc survey shall be by direst, personal interview, except where ro- peated efforts indicate that is not possible. When a person cannot be inter- viewed or the interview does not produce the information to be obtained reasonable efforts shall be made to obtain the information by other means. Eligible persons should be encouraged to bring any change in their needs to the attention of relocation officials. The survey shall be up- dated at least annually. (c) A public entity shall endeavor to obtain the following information. income; whether a person is elderly or handicapped; size of family; age of children; location of job and factors limiting accessibility, area of pre- fcrred relocation; type of unit preferred; ownership or tenant preference; need for social and public services, special schools and other services; eligibility for publicly assisted housing; and with reference to the present dwelling, the rent, the type and quality of construction, the number of rooms and bedrooms, the amount of habitable living space, and locational factors including among others public utilities, public and commercial facilities (including transportation and schools) and neighborhood condi- tions (including municipal services). Other matters that concern a house- hold as its members contemplate relocation should also be included. (d) A written analysis of relocation housing needs shall be prepared. It shall be prepared in sufficient detail to enable determination of the availability for all potential displaces of housing which meets the stan- dards set forth in the definition of comparable replacement housing. The information concerning home ownership and rental units shall be pro- vided separately. The number of units needed shall be identified by cost for each size category. The needs of elderly and handicapped households shall be shown separately and shall include information on the number of such households requiring special facilities and the nature of such faci- lities. The statement of relocation housing needs shall include a description of the locational characteristics of the displacement arca neighborhoods corresponding to the requirements of comparable replacement housing. Information shall be provided concerning proximity to present employ- ment sources, medical and recreational facilities, paries, community cen- ters, shopping, transportation and schools. Information concerning prox- imity to other relevant needs and amenities is essential to ensuring that no residents are incapacitated by the relocation and such information also should be provided. $ 6050. Fallure to Conduct Timely and Effective Survey. When a survey is not conducted in a timely and effective manner, the public entity shall be obligated to make every effort to locate all eligible persons who have moved so that their needs can be included in the survey and the impact on the housing stock in the community can be more accu- rately determined. The public entity shall offer such persons all reloca- tion assistance and benefits for which they otherwise qualify and, in addi- tion, shall compensate such persons for all costs occasioned by the Page 266 (4-1-90) Title 25 Department of Housing and Community Development Programs 6058 entity's failure to provide timely notice and offers of relocation assis- tance and benefits. § 6052. Survey and Analysts of Available Relocation Resources. (a) (1) To enable a public entity reasonably to determine that the rcqui- site comparable replacement dwellings will be available, the public enti- ty, within 15 days following the initiation of negotiations, thall initiate a survey and analysis of available comparable relocation resources. If a recent survey that provides the information identified in this suc- tion is not available, the public entity shall conduct a survey and analysis of the housing market. If a recent survey is available, but it docs not reflect more recent, significant changes in housing market conditions, the sur- vey shall be updated or it shall not be relied upon. (2) When more than 25 households will be displaced, survey results shall be su bmnirted for review to local housing, development and planning agencies and shall be compared to other existing information on housing availability. (3) The survey shall be updated at least annually. (b) Tttc survey arca shall be reasonably related to the displacement aria and to the needs and preferences of the persons to be displaced, as indicated in the written analysis prepared pursuant to section 6048. The survey area shall have relevant characteristics (see subsection 6008(c)) which equal or exceed those of the neighborhood from which persons are to be displaced. (c) A written analysis of relocation housing resources shall be pre- pared in sufficient detail to enable determination of the availability for all potential displaces of housing which meets the standards set forth in the definition of comparable rcplaccmcnt housing. The information con- eernIng homeownership and rental units shall be provided separately. The number of units available shall be identified by cost for each size category. Resources available to meet the needs of elderly and handi- capped households shall be shown separately and shall include informa- tion on the number of units with special facilities and the nature of such facilities. The analysis of rcsourccs shall include a description of the locational characteristics of the survey area neighborhoods corresponding to the re- quirements of comparable replacement housing. Information shall be provided concerning proximity to present employment sources (with the consent of the displaced person a potential employer may be substituted), medical and recreational facilities, parks, community centers, shopping, M-ansporration and schools. Information concerning proximity to other relevant needs and amenities is essential to ensuring that residents are not incapacitated by the relocation and such information should also be pro- vided. (d) (1) Units which do not satisfy the standards of comparable replace- ment housing, including the locational c-riteria. shall not be counted as a relocation resource. (2) Uncompleted new construction or rehabilitation shall not be in- cluded in the gross figure unless there is a substantial likelihood that the units will be available when needed and at housing or rental costs within the financial means of the prospective occupants. (3) In addition to the othcrrequirements of this section, the gross figure representing the number of rutin available shall be discounted to reflect both concurrent displacement and the extent to which tumover is rep re- sented, Concurrent displacement by the federal government and its agcn- cies, including federally—assisted projects, as well as displacement by other public entities shall be taken into account. Turnover is the dynamic operation by which occupancy changes occur within a standing inventory over a period of time and theoretically could occur in the complete ab- sence of vacancies on a person to person basis. The use of turnover for relocation is not permissible. The displacing entity shall assume that four percent of the rental and one percent of the ownership units which meet the standards of comparable replacement dwellings (sce section 6008(c)) represents turnover. The displacing entity shall use a higher percentage figure if such figure is more accurate. The displacing cadty may use a lower figure if it establishes that the lower figure is a more accurate as_ gumption. (4) Publicly su bsidized housing, including public housing, shallnot be counted as a resource unless it reasonably can be established that (A) The units will be available when needed; (B) The governmental body providing the subsidy has made, in writ. ing, a reasonably binding commitment of assistance; and (C) The units have been inspected and determined to be decent, sae and sanitary and the income ceilings, rent ranges and age restrictions, if any, have been considered. (D) The number of units available in the community exceeds the num. her of households in need of the units. This requirement may be waived by the department if the public entity can establish that such units will be replaced by last resort housing within two years. To establish that last re- sort housing will be developed as required thepublic entity must have site control with permissive zoning, preliminary plans and conditional com- mitments for subsidy and financing or the equivalent. The public entity also must identify owmership. (c) Uncompleted new construction or rehabilitation which is Subsi- dized by public funds shall not be counted as a relocation resource unless the units are being subsidized to provide relocation resources. ¢ 6054. last Resort Housing. (a) No eligible person shall be required to move from his dwelling be- cause of the action of a public entity unless comparable replacement housing is available to him. (b) If on the basis of its survey and analysis of relocation needs and re- sources a public entity cannot determine that comparable replacement housing will be available as required, the public entity may not proceed with any phase of a project or other activity which will result in displace- ment unless it provides such housing. (See Article 4.) (c) If the action of a public entity has resulted or is resulting in displace- mcnt and comparable replacement housing is not available as needed, the public entity shall use its funds, or funds authorized for the project to pro- vide such housing (see Article 4), or shall terminate or suspend further implementation of the project activity in accordance with the provisions of section 6018. (d) Temporary relocation resources may be relied upon in the interim only if the provisions of section 6004 are satisfied. 6056. Termination of Relocation Assistance. A public entity's relocation obligations cease under the following cir- cumstanccs: (a) A displaced person moves to a comparable replacement dwelling and receives all assistance and payments to which he is entitled. (b) The displaced person moves to substandard housing, refuses rea- sonable offers of additional assistance in moving to a decent, safe and sanitary replacement dwelling and receives all payments to which he is entitled. (c) All reasonable efforts to trace a person have failed. To ensure that the action of a public entity does not reduce the housing supply in critical categories or locations, unsuccessful efforts to trace a particular dis- placed person shall not lessen the obligation to provide last resort hous- ing. (See Article 4.) (d) The business concern or farm operation has received all assistance and payments to which it is entitled and has been successfully rclocattd or has ceased operations. (e) A person displaced from his dwelling, business or farm refuses rea- sonable offers of assistance, payments and comparable replacement housing. ii 6058. Eviction. (a) Eviction is permissible only as a last resort. It in no way affects the eligibility of evicted displaced persons for relocation payments. Reloca- tion records must be documented to reflect the specific circumstances surrounding the eviction. p-iva 2A7 —•_an 16060 BARCLAYS CALIFORNIA CODE OF REGULATIONS Title 25 (b) Eviction shall be undertaken only for one or more of the following reasons: (1) Failure to pay rent, except in those cases wham the failure to pay is due to the lessor's failure to keep the premises in habitable condition, is the result of harassment or retaliatory action or is the result of disconti- nuation or substantial interruption of services. (2) Performance of a dangerous. illegal act in the unit. (3) Material breach of the rental agreement and failure to correct breach within 30 days of notice. (4) Maintenance of a nuisance and failure to abate within a reasonable time following notice. (5) Refusal to accept one of a reasonable numbs of offers of replace- ment dwellings. (6) The eviction is required by State or local law and cannot be pre- vented by reasonable efforts on the part of the public entity. ¢ 6060. Evaluatlon of Relocation. (a) A public entity is encouraged to evaluate its relocation program, as- sessing the quality and quantity of services provided as well as displacee satisfaction, todetermine the adequacy of program planning and to ascer- tain whether any persons have been denied the full benefits and services to which they arc entitled. The evaluation should be based upon an annual or continual inspection of files and records, case interviews. and inspec- tion of replacement housing and business and farm replacement locations and discussions with local individuals or organizations familiar with re- location issues. A written evaluation should be prepared at least annually. (b) The files and records of displaced persons and property owners should be selected at random. The review should include any cases that were identified by previous monitoring as requiring corrective action and should assess the public entity's progress in taking corrective action. Both relocation and acquisition activities should be covered by the re- view. (1) The relocation sample should include cases in which all payments have been completed and cases in which the person has been displaced but all payments have not yet been made. The sample should provide a basis forthe reviewerto determine not only whether payments were com- puted properly and made promptly, but also whether displaced persons received proper notice of the full range of relocation assistance and ser- vices to which they are entitled. Priority attention should be given to cases in which a grievance has been filed or the agency has determined that a person is ineligible for relocation benefits. (2) The acquisition sample should be based on cases in which settle- ment has been completed. However, if necessary to provide a representa- tive sample of acquisition activities, the reviewer should include incom- pleLe transactions in which negotiations have been initiated. (c) After the records and files have been reviewed, the reviewer should select cases for further evaluation through personal interviews with dis- placed persons and/or owners and the inspection of housing to which per- sons have moved. The interviews and housing inspections should serve both to spot chock the accuracy of the information obtained in the exami- nation of the records and files and give the reviewer a letter perspective on the agency's performance. The number and type of cases for which interviews and housing in- spections arm to be carried out should reflect the reviewer's judgment based on the information he has just reviewed. Generally, an interview and inspection should be carred out for at least one of every five cases for which the files and records have been reviewed. Only where the num- ber of persons displaced is less than 25 should the number of interviews and inspections be less than 10. In no case should the number of inter- views and inspections be lower than the lesser of five and the number of persons displaced. To the extent possible, the interviews should cover a representative cross section of the types of oases in the agency's work- load_ e.g., relocation cases involving families of various sizes as well as individuals and business concerns (including both owners and tenants). and acquisition transactions involving residential, commcmial and in- dustrial properties. (d) In addition to the above, the following factors are among those which should be considered: (1) The effectiveness of efforts to provide relocation services to dis- placed persons, including timeliness of notice and correctness of eligibil. ity determinations. (2) The satisfaction of relocated families, individuals and business concerns in their new locations. (3) The extent to which self—moves to substandard housing have been minimized. (4) The effectiveness of efforts to provide relocation smites to busi- ness concerns, including counseling services and SBA loans to aid in their reestablishment (5) The promptness of processing claims and the making of payments, including the amounts, delivery, and use of relocation payments. (6) The number and magnitude of tent increases following acquisition and displacement. (7) The effectiveness of methods used to resolve difficulties experi. enced by site occupants. (8) The effectiveness of the public entity's grievance procedures. (9) The extent of resident involvement in planning the relocation pro- gram. (10) The effectiveness in assuring equal opportunity for displaced per- sons and in reducing patterns of minority—group concentration. (11) The effectiveness of relocation in upgrading the housing and overall environmental conditions of persons displaced. (12) The effectiveness of the social service program, including coun- seling services, in helping residents adjust to relocation and in helping solve individual and family problems. (13) The impact on those segments of the housing market seting the income groups displaced. Article 3. Relocation Payments ¢ 6080. Purpose. The purpose of this Article is to set forth the types of, and specific eligi- bility criteria for, relocation payments to displaced persons. Basic eligi- bilityeonditions are set forth in section 6084. Specific conditions relating to particular payments are described in later sections. ¢ 6082. Relocation Payments by Public Entity. A public entity shall make relocation payments to or on behalf of eligi- ble displaced persons in accordance with and to the full extent permitted by this Article. The obligations described in this Article are in addition to those in Article 6. ¢ 6084. Basic Eligiblilty Condltions. A person establishes basic eligibility forrelocation payments if he sat- isfies the conditions described in section 6034. A person who moves from real property or who moves his personal property from real property be- cause he will be displaced from other real property on which he conducts a business or farm operation, establishes eligibility on the basis of the move from such other property only for payments made pursuant to sec- tion 6090. 16086. Notice of Intent to Displace. A public entity may issue a written Notice of Intent to Displace at any time after forming a reasonable expectation of acquiring real property. Such a notice, by establishing eligibility prior to acquisition, will enable a public entity to respond to hardship and other situations. ¢ 6088. Filing of Claims; Submission of Tax Returns. All claims filed with the public entity shall be submitted within eigh- tecn months of the date on which the claimant receives final payment for the property or the date on which he moves, whichever is later. The dis- Page 268 (4-1-9o) Title Li DEplrlmrtsi 6f Iibnsfng and Conu»uaity Develupwrent Programs g 6092 placing entity may extend this period upon a proper showing of good cause. Except when specifically provided otherwise a claimant shall not be required to submit a copy of his tax returns in support of a claim for relo- cation payments. § 6090. Actual Reasonable Moving Expenses. (a) Gcncral. A public cntity shall make a payment to a displ aced person who satisfies the pertinent eligibility requirements of section 6094 and the requirements of this section, for actual reasonable expenses specified Wow and subject to the limitations set forth in subsection (c) of this sec- tion for moving himself, his family, business, farm operation orotherper- conal property. In all cases the amount of a payment shall not exceed the reasonable cost of accomplishing the activity in connection with which a claim has been filed. The moving and related expenses for which claims may be filed shall include: (1) Transportation of persons and property not to exceed a distance of 50 miles from the site from which displaced, except where relocation be- yond such distance of 50 miles is justified; (2) Packing, crating. unpacking and uncrating personal property; (3) Such storage of personal property, for a period generally not to ex- ceed 12 months, as determined by the public entity to be necessary in con- nection with relocation; (4) Insurance of personal property while in storage or transit; and (5) The reasonable replacement value of property lost, stolcn or dam- aged (not through the fault or negligence of the displaced person, his agent, or employee) in the process of moving, where insurance covering such loss, theft or damage is not reasonably available. (6) The cost of disconnecting, dismantling, removing, reassembling, reconnecting and reinstalling machinery, oquipment or other personal property (including goods and inventory kept for sale) not acquired by the public entity, including connection charges imposed by public utili- tics for starting utility service. (b) Actual Reasonable Moving Expenses—I)isp)accd Business Con- cerns and Farm Operations. In addition to those compensable expenses w forth in subsection (a) of this section, a displaced business concern or farm operation may file a claim for the following moving and related expenses: (1) The cost, directly related to displacement and subject to the limita- tion imposed by paragraph (b)(2), of: (A) Any addition, improvement, alteration or other physical change in or to any structure or its premises in connection with the reassembling, reconnection or reinstallation of machinery, equipment or other personal property. A public entity, at its discretion, may compensate a displaced business or farm for any addition, improvement, alteration orother physi- cal change otherwise required to render such structure, premises, or equipment suitable for the business or farm's use. (B) Modifying the machinery, equipment, or other personal property to adopt it to the replacement location or to utilities available at the rc- placement location or modifying the power supply. (2) Claims for payment under this subsection shall be subject to the fol- lowing )imitations: (A) Reimbursable costs shall be reasonable in amount. (B) The cost shall be found by the public entity to be required by law or ordinance or to be otherwise necessary to the reestablishment of the displaced business or farm. (C) The cost could not be avoided or substantially reduced at an alter- nate available and suitable site to which the business was referred. (D) The public entity shall deduct, on the basis of a reasonable esti- mate, the amount, if any, realized by the displaced business concern as compensation for comparable additions, improvements, alterations or other physical changes to the structure and premises acquired, as part of, the payment made for the acquisition of such structure and premises. ' (3) The cost of any license, permit or cc.tification required by a di, placed business concern to the extent such cost is necessary to the rres- tablishment of its operation at a new location. (4) The reasonable cost of any professional services (including but not limited to, architects', attorneys' or engineers' fees, or consultants, charges) necessary for planning the move of personal property, moving the personal property. or installation of relocated personal property u the replacement site. (5) When an item of personal property which is used in connection with any business or farm operation is not moved but is replaced with I comparable item, reimbursement in an amount not to exceed (1) the re- placement cost, minus any net proceeds received hem its sale, or (2) the estimated cost of moving, whichever is less. (c) Advance Payments. A displaced person may be paid for his amici_ pated moving expenses in advance of the &dual move. A public entity shall provide advance payment whenever later payment would result in financial hardship. Particular consideration shall be given to the financial limitations and difficulties experienced by low and moderate income per- sons and small farm and business operations. (d) The specific provisions contained in this section are not intended to preclude a public entity's reliance upon other reasonable means of ef- fecting a move, including contracting moves and arranging for assign- ment of moving expense payments by displaced persons. (e) Self–moves. Without documentation of moving expenses actually incurred, a displaced person electing to self–move may submit a claim for his moving expenses to the public entity in an amount not to excad an acceptable low bid or an amount acceptable to the displacing entity. (f) Personal Property of Low Value and High Bulk—BusinessorFarm Operation. Where, in the judgment of the public entity, the cost of moving any item of persona] property of low value and high bulk which is used in connection with any business or farm operation would be dispropor- tionate in relation to its value, the allowable reimbursement for the ex- pense of moving such property shall not exceed the difference between the cost of replacing the same with a comparable item available on the market and the amount which would have been received for such proper- ty on liquidation. This provision may in appropriate situations be applied to claims involving the moving of junkyards, stockpiles, sand, gravel, minerals, metals and similar property. (g) Documentation in Support of a Claim. (1) General. Except in the cast of a displaced person conducting a self– move as provided in subsection (e) above, a claim for a payment under this section shall be supported by a bill or other evidence of expenses in- curred. By prearrangement between the public entity, the site occupant, and the mover, evidenced in writing, the claimant or the mover may pms- ent an unpaid moving bill to the public entity, and the public entity may pay the mover directly. (2) Business and Farm Operations. Each claim in excess of S1,000 for the costs incurred by a displaced person formoving his business or farm operation shall be supported by competitive bids in such number as are practical. If the public entity determines that compliance with the bid rc- quirtment is impractical or if estimates in an amount of less than S 1,000 are obtained, a claim may be supported by estimates in Lieu of bids. (h) Whenever a public entity must pay the actual cost of moving a dis- placed person the costs of such move shall be exempt from regulation by the Public Utilities Commission as provided by section 7262(e) of the Act The public entity may solicit competitive bids Erom qualified bidders for performance of the work. Bids submitted in response to such solicita- tions shall be exempt from regulation by the Public Utilities Commission. § 5092. Actual Direct Losses of Tangible Personal Property. (a) General. A public entity shall make a payment to a displaced person who satisfies the eligibility requirements of section 6090 and this section, for actual direct losses of tangible personal property as a result of moving Page :69 6094 BARCLAYS CALIFORNIA CODE OF REGULATIONS Title 25 or discontinuing a business or farm operation, in an amount determined by the public entity to be in accordance with the provisions of this section. (b) Determining Actual Direct Loss of Property. Actual direct loss of property shall be determined on the basis of the lesser of the following: (1) The fair market value of the property for continued use at its loca. tion prior to displacement, (2) T'he estimated reasonable costs of relocating the property. The public entity may require that the owner fiat make a bona fide cf. fort to sell the property or it may permit the owner not to do so. The pro - cods realized from any We of all or part of the property shall be deducted from the determination of loss. In calculating payment under this section the reasonable cost of an effort to sell shall be added to the determination of loss. (c) Documentation to Support Claim. A claim for payment hereunder shall be supported by written evidence of loss which may include apprais- als, certified prices, bills of We, receipts, cancelled checks, copies of ad- vertisements, offers to sell, auction records, and other records appropri- ate to support the claim or the public entity may agree as to the value of the property left in place. §6094. Actual Reasonable Expenses In Searching fore Replacement Buslness or Farm. A displaced person who satisfies the pertinent eligibility rcquirrments of section 6090 with respect to actual reasonable moving expenses, shall be eligible for a payment in an amount not to exceed S500, in searching for a replacement business or fans, including expenses incurred for. (a) Transportation; (b) Meals and lodging away from home; (c) Tune spent in searching, based on the hourly wage rate of the salary or earnings of the displaced person or his representative, but not to excced $10 per hour, and (d) Fees paid to a real estate agent or broker to locate a replacement business or farm. 16096. Moving Expenses—Outdoor Advertising Businesses. A displaced person who conducts a lawful activity primarily for assist- ing in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of outdoor advertising displays is entitled to payment for the reasonable cost of moving such displays or their in-place value, whichever is lesser. 16098. Alternate Payments --Individuals and Families. A person or family, who is displaced from a dwelling and is eligible for a payment for actual reasonable moving expenses under section 6090. may elect to receive and shall be paid, in lieu of such payment: (a) A moving expense allowance not to exceed $300 and determined in accordance with established Federal Highway Administration sched- ules maintained by the California Department of Transportation, and (b) A dislocation allowance of $200. HISPDRY 1. Amendment of subsection (a) filed 11-5-76 u m emergency; designated ef- fective 11-27-76 (Register 76, No. 44). 2. Certificate of Compliance filed 2-16-77 (Register 77, No. g). 1 6100. Alternate Payments --Businesses and Farm Operations. (a) General. (1) A person who is displaced from his place of business or farm opera- tion and is eligible for payments under sections 6090, 6092, 6094, or 6096, and complies with the requirements of this section, may elect to re- ceive and shall be paid, in lieu of such payments, a payment equal to the average annual net earnings of the business or farm operation (but not in- cluding a business as described in section 6096) as determined in accor- dance with subsection (b) below, except that such payment shall be not less than 52,500 nor more than S 10,000. For purposes of this section, the dollar limitation specified in the proceding sentence shall apply to a single business, regardless of whether it is carried on under one or mono legal entities. (2) Loss of Goodwill. When payment under this section will precede settlement of a claim far compensation for loss of goodwill under the Em- incnt Domain Law, the public entity before tendering payment shall state in writing what portion of the payment, if any, is considered to be com- pensation for loss of goodwill and shall explain in writing that any pay- ment made pursuant to Code of Civil Procedure, Sections 1265.510 el seq. (the Eminent Domain Law, Chapter 9, Article 6—"Compensation for Loss of Goodwill") will be reduced in the same amount. The portion considered to be compensation for loss of goodwill shall not exceed the difference between the payment made under this section and an amount which reasonably approximates the payments for which the displaced person otherwise would be eligible under sections 6090, 6092, 6094, and 6096. Failure to provide such written statement and explanation shall constitute a conclusive indication that no portion of the payment is can- sidered to be compensation for loss of goodwill for the purposes of that portion of the Code of Civil Procedure referenced above. (b) Requirements—Businesses. Payment shall not be under this sec- tion unless the public entity determines that: (1) The business cannot be relocated without a substantial loss of its existing patronage, based on a consideration of all pertinent circum- stances including such factors as the type of business conducted, the na- turc of the clientele, the relative importance to the displaced business of its present and proposed location, and the availability of a suitable reloca- tion site; (2) The business is not part of a commercial enterprise having another establishment which is not being acquired for a project and which is en- gaged in the same or similar business. Whenever the sole remaining facil- ity of a business which has been displaced from its principal location: (A) Has been in operation for less than two years; (B) Has had average annual gross receipts of las than $2.000 during the two taxable years prior to displacement of the major component of the business; or (C) Has had average annual net earnings of less than S 1,000 during the two taxable years prior to the displacement of the major component of the business, the remaining facility will not be considered another"estab- lishmcnt" for purposes of this section; and (3) The displaced business: (A) Had average annual gross receipts of at least 52,000 during the two taxable years prior to displacement; or (B) The displaced business had average annual net earnings of at least S 1,000 during the two taxable years prior to displacement; or (C) The displaced business contributed at Icast 33 113 percent of the total gross income of the owncr(s) during each of the two taxable years prior to displacement. If in any case the public entity determines that the two year period prior to displacement is not representative of average re- ceipts, earnings or income, it may make use of a more representative peri- od. (c) Determination of Number of Businesses. In determining whether one or more legal entities, all of which have been acquired, constitute a single business, the following factors among others shall be considerrd: (1) The extent to which the same premises and equipment are shared. (2) The extent to which substantially identical or intimately interre- lated business functions are pursued and business and financial affairs are commingled. (3) The extent to which such entities are held out to the public, and to those customarily dealing with such entities, as one business. (4) The extent to which the same person or closely related persons own, control or manage the affairs of the entities. (d) Requirements—Farms. In the case of a farm operation, no payment shall be made under this section unless the public entity determines that the farm met the definition of a farm operation prior to its acquisition. If the displacement is limited to only pan of the farm operation, the operator Fage 270 (41-90) Tule 25 Department of Housing and Community Development Progams 16102 will be considered tD have been displaced from a farm operation if: the part taken met the definition of a farm operation prior to the taking and the taking caused such a substantial change in the nature of the existing farm operation as to constitute a displacement. (e) Requirements—Nonprofit Organizations. In the case of a nonprof- it organization, no payment shall be made under this section unless the public entity determines that: (1) The nonprofit organization cannot be relocated without a substan- tial loss of its existing patronage (the term "existing patronage- as used in connection with a nonprofit organization includes the membership, persons, community, or clientele served or affected by the activities of the nonprofit organization); and (2) The nonprofit organization is not a part of an enterprise having at lest one other establishment not being acquired which is engaged in the same or similar activity. (f) Net Earnings. The term "average annual net earnings" as used in this section means one-half of any net earnings of the business or farm operation, before federal and state income taxes, during the two taxable yeaas immediately preceding the taxable year in which the business or farm operation moves from the real property acquired for such project, or during such other period as the head of the public entity determines to be more equitable forestablishing such earnings, and includes any com- pensation paid by the business or farm operation to the owner, his spouse or his dependents during such period. The term "owner" as used in this section includes the sole proprietor in a sole proprietorship, the principal partners in a partnership, and the principal stockholders of a corporation, as determined by the public entity. For purposes of determining a princi- pal stockholder, stock held by a husband, his wife and their dependent children shall be treated as one unit. (g) if a displaced person who conducts a business or farm operation elects to receive a fixed payment under this section, he shall provide proof of his earnings from the business or farm operation to the agency con- c=ned. Proof of earnings may be established by income tax returns, fi- nancial statements and accounting records or s imilar e v idence acceptable to the public entity. wsroav 1. Amendment of subsection (c)(2) riled 11-5-76 as an emergency: designated effective 11-27-76 (Register 76, No. 44). 2. Certificate of Compliants filed 2-16-77 (Register 77, No. 8). ¢ 6102. Replacement Housing Payments for Homeowners. (a) General. A public cntity shall make to a person who is displaced from a dwelling and who satisfies the pertinent eligibility requirements of section 6084 and the conditions of su bsection (b) of this section, a pay- ment not to exceed a combined total of 515,000 for. (1) The amount.. if any, which when added to the acquisition cost of the dwelling acquired for the project equals the rcasonabic cost, as deter- mined in accordance with subsection (c), of a comparable replacement dwelling. This amount shall not exceed the difference between the acqui- sition price of the acquired dwelling and the actual purchase price of the replacement dwelling, except where a displaced person, in the circum- stsnce described in paragraph 6108(a)(1), is willing to use the extra money to improve the condition of the dwelling. (2)The amount, if any, to compensate the displaced person for any in- creased interest costs, as determined in accordance with subsection (c), he is required to pay forfinancing the acquisition of a replacement dwell- ing. The payment shall not be made unless the dwelling acquired by the public entity was cncttmbered by a bonafide mortgage which was a valid Lica on the dwelling for not less than 180 days prior to the initiation of ne- gotiations for acquisition of such dwelling. (This time requirement may be modified in accordance with the provisions of subsection (b) below.) (3) Reasonable expenses, determined in accordance with subsection (c) of this section, incurred by the displaced person incident to the pur- chase of the replacement dwelling. (4) In accordance with section 6106, the cost of rehabilitating a dwell- ing which does not satisfy the decent, safe and sanitary standard. (b) Eligibility Conditions. (1) A displaced person is eligible forpayment underthis section if such person: (A) Is displaced from a dwelling that is acquired; (B) Has actually owned and occupied such dwelling for not less than 180 days prior to the initiation of negotiations for its acquisition; and (C) Purchases and occupies a replacement dwelling within one year subsequent to the date on which he received final payment from the pub. lic entity of all costs of the acquired dwelling or the date on which he moves from the acquired dwelling, whichever is later. (2) If an owner satisfies all but the 180 day requirement and can estab- lish to the satisfaction of the public entity that he bought the dwelling with the intention of making it his place of residence, that the move was not motivated by a desire to receive relocation assistance and benefits, and that he neither knew nor should have known that public acquisition was intended the public entity may reduce the requirement as necessary. (3) Where forreasons beyond the control of the displaced person com- pletion of construction, rehabilitation, or relocation of a replacement dwelling is delayed beyond the date by which occupancy is required, the public entity shall determine the date of occupancy to be the date the dis- placed person enters into a contract for such construction, rehabilitation. or relocation or for the purchase. upon completion, of a dwelling to be constructed or rehabilitated, if, in fact, the displaced person occupies the replacement dwelling when the construction or rehabilitation is com- pleted. (4) Where, for reasons of hardship or circumstances beyond the con. trol of the displaced person, such person is unable to occupy the replace- ment dwelling by the required datc, the public entity may extend the dead- line as necessary. If by the deadline the displaced person has contracted to purchase a replacement dwelling, the public entity should extend the deadline. (5) No person otherwise eligible for a payment under this section or under section 6104 shall be denied such eligibility as a result of his being unable, because of a major state or national disaster, to meet the occupan- cy requirements. (c) Computation of Replacement Housing Payment_ (1) Cost of Comparable Replacement Dwelling. (A) In determining the reasonable cost of a comparable replacement dwelling, the public entity concerned shalluse one of the following meth- ods: 1. Comparative Method. On a case -by -rase basis by determining the listing price of dwellings which have been selected by the public entity and which arc most representative of the acquired dwelling unit and meet the definition of comparable replacement dwelling set out in subsection 6008(c). Whenever possible the listing price of at least three dwellings shall be considered. 2. Schedule Method. Where the public entity determines that the com- parative method is not feasible, it may establish a schedule of reasonable acquisition costs for the various types of comparable replacement dwcll- ings. If more than one entity is administering a project causing displace- ment in the arca, it shall cooperate with the other entities in establishing a uniform schedule for the area. The schedule shall be based on a current analysis of the market to determine a reasonable cost for each type of dwelling to be purchased. In large urban areas this analysis may be con- fined to the sub -area from which persons ars displaced or may cover scv- cral different sub-aroas, if they satisfy or exceed the criteria listed in sub- scction 6008(c). To assure the greatest comparability of dwellings in any analysis, the analysis shall be divided into classifications of the type of construction, number of bedrooms, and price ranges. 3. Alternative Method. Where the public entity determines that neither the schedule, nor comparative method is feasible in a given situation, by the use of another reasonable method. (B) Whichever method is selected the cost shall be updated to within three months of the date of purchase of the replacement dwelling. pa -le 271 § 6104 BARCLAYS CALIFORNIA CODE OF REGU'LATIO iS (2) Interest Payments. Interest payments shall be equal to the dis- counted present value of the difference between the aggregate interest applicable to the amount of the principal of the mortgage on the acquired dwelling over its remaining term at the time of acquisition, and other debt service costs, and the aggregate interest paid on the mortgage on the re- placement dwelling, and other debt service costs. The term and amount of the mortgage on the replacement dwelling for purposes of this para- graph shall be the lesser of the remaining term and amount of the mors. gage on the acquired dwelling, orthe actual term and amount of the mort- gage on the replacement dwelling. The amount of the debt service cost with resFect to tlrc replacement dwelling shall be the lesser of the debtscr- vice cost based on the cost required for a comparable dwelling, or the debt service cost based on the actual cost of the replacement dwelling. Prepaid interest or -points" &hall be considered in the determination of aggregate interest. In calculating the amount of compensation, increased interest cost &hall be reduced to discounted present value using the prevailing interest rate paid on savings deposits by commercial banks in the general area in which the replacement dwelling is located. (3) Expenses Incident to the Purchase of the Replacement Dwelling. Payment under this section shall include the amount necessary to reim- burse the displaced person for actual costs incurred by him incident to the purchase of the replacement dwelling, including but not limited to the fol- lowing: legal, closing, and related costs including title search, preparing convevance contracts, notary fees, surveys, preparing drawings or plats, and charges paid incident to recordation; lender, FHA, VA or similar ap- praisal cost: FHA, VA or similar application fee; cost for certification of structural soundness; credit report charges; charge for owner's and mort- gagee's eviderxc or assurance of title; escrow agent's fee; and sales or transfer taxes. Payment for any such expenses shall not exceed the amount attributable to the purchase of a replacement dwelling. Such ex- penscs shall be reasonable and legally required or customary in the com- munity. Reimbursement shall not be made under the provisions of this para- graph for any fee, cost, charge, or expense which is determined to be a part of the debt Service or finance charge under Title I of the Truth in Lending Act (Pub. L. 90421), and Regulation Z issued pursuant thereto by the Board of Governors of the Federal Reserve System. Any such sum should be considered in the determination of interest payments. (d) Multi -family Dwelling. In the case of a displaced homeownerwho is required to move from a one -family unit of a multi -family building which he owns, the replacement housing payment shall be based on the cost of a comparable one -family unit in a multi -family building of ap- proximately the same density or if that is not available in a building of the next less density, or, if a comparable one -family unit in such a multi- family building isnot available, the cost of an otherwise comparable sing- le-family structure. (e) Owner Retention. (1) If a displaced homeowner elects to retain, move, and occupy his dwelling, the amount payable underthis section is the difference between the acquisition price of the acquired property and the sum of the moving and restoration expenses, the cost of correcting decent, safe, and sanitary deficiencies, if any, and the actual purchase price of a comparable reloca- tion site. A public entity may limit the payment made under this subsec- tion to the amount of the replacement housing payment for which the homeowner would otherwise be eligible. (2) The payment shall not exceed S 15,000. (f) Provisional Payment Pending Condemnation. If the exact amount of a replacement housing payment cannot be deter- mined because of a pending condemnation suit, the public entity con- cerned may make a provisional replacement housing payment to the dis- placed homeowner equal to the difference between the public entity's maximum offer for the property and the reasonable cost of a comparable replacement dwelling, but only if the homeowner enters into an agrcc- mcnt that upon final adjudication of the condemnation suit the replace - Title 25 went housing payment will be recomputed on the basis of the acquisition price determined by the court If the acquisition price as determined by the court is great= than the maximum offer upon which the provisional replacement housing payment is based., the difference will be refunded by the homeowner to the public entity. If the acquisition price as deter. mined by the court is less than the maximum offer upon which the provi- sional replacement housing payment is based, the difference will be paid to the homeowner. (g) Losse of Condominium. For the purposes of this section, the leas- ing of a condominium for a 99 --year period, or for a term which exceeds the life expectancy of the displaced person as determined by the most re- cent life tables in Vital Statistics of the United States, as published by the Public Health Service of the Department of Health, Education and Wel- fare, shall be deemed a purchase of the condominium. §6104. Replacement Housing Payments for Tenants and Certaln Others. (a) General A public entity shall make to a displaced person who sads- 6es the eligibility requirements of section 6084 and the conditions of sub- section (b) below, a payment not to exceed $4,000 for either. (1) An amount, computed in accordance with paragraph (d)(1) of this section, necessary to enable such person to lease or rent a replacement dwelling for a period not to exceed 4 years; or (2) An amount, computed in accordance with paragraph (d)(2) of this section, necessary to enable such person to make a downpayment on the pazrehase of a replacement dwelling ('including incidental expenses de- s-cribcd in section 6102). If such amount exceeds $2,000, the displaced person shall equally match any such amount in excess of $2,000 in mak- ing the downpayment. (b) Eligibility Conditions. A displaced person is eligible for the payments specified in subsection (a) if he satisfies the following conditions: (1) Has occupied the dwelling from which he is displaced for a period of not less than 90 days prior to the initiation of negotiation for acquisition of such dwelling. (2) Is not eligible to receive a replacement housing payment for home- owners under section 6102 or elects not to receive such payment. Where the displaced person is the owner -occupant of the dwelling, the payment made under paragraph 6104(a)(2) shall not exceed the amount of pay- ment to which the person would be eligible under section 6102. (3) Whenever a payment under subsection (a)(2) is sought the dis- placed person shall within one year from the date of displacement pur- chase and occupy a replacement dwelling. (c) The provisions in subsection 6102(b) formodifying the conditions of eligibility also apply to this section. (d) Computation of Payment. (1) Rentals. The amount of payment necessary to lease or rent a com- parable replacement dwelling, under subsection (a)(1), shall be com- puted by subtracting 48 times the base monthly rental of the displaced person (as determined in accordance with this subsection), from 48 times the monthly rental for a comparable replacement dwelling (as deter- mined in accordance with this subsection): Provided, that in no case may such amount exceed the difference between 48 times the base monthly rental as determined in accordance with this subsection and 48 times the monthly rental actually required for the replacement dwelling occupied by the displaced person. (A) Base Monthly Rental. The base monthly rental shall be the lesser of the average monthly rental paid by the displaced person for the 3 -month period prior to initiation of negotiations and 25 percent of the displaced person's average monthly income. (See subsection 6008(1).) Where the displaced person was the owner of the dwelling from which he was displaced or was not required to pay rent for that dwelling, the eco- nomic rent (see subsection 6008(h)) shall be used in lieu of the average monthly rental to calculate base monthly rental. Page 272 (4-r-90) Title 25 Department of Housing and Comrrtanity Development Programs $ 6112 (B) Comparable Rental. The monthly rental for a comparable mplact- ment dwelling shall be the amount of rent determined by the public entity by one of the methods described in paragraph 6102(c)(1), considering rental charges instead of listing price or acquisition cost. (C) Whichever method is selected the cost shall be updated to within three months of the date of rental of the replacement dwelling. (2) Downpayment The downpayment for which a payment specified under paragraph (a)(2) of this section may be made, together with any matching share which may be required, shall not exceed the amount of a reasonable downpayment for the purchase of a comparable replace- ment dwelling where such purchase is financed, plus expenses incident to the purchase of a replacement dwelling computed in accordance with Section 6102. The full amount of a downpayment under this section shall be applied to the purchase of the replacement dwelling and shall be shown on the closing statement or other document acceptable to the public enti. ty• (e) Rental Payments for Displaced Owners and Dependents. (1) Owners. A displaced owner who elects to rent rather than purchase a replacement dwelling and who meets the eligibility conditions speci- ficd in subsection (b) is eligible for the payment specified in paragraph (a)(1). (2) Dependents. A dependent who is residing separate and apart 5rom the person _+r family providing support, whether such separate residence is permanent or temporary, shall be entitled to payment under this sec- tion, but such payment shall be limited to the period during which the dis- placed dependent resides in the replacement dwclUng. At the time the dis- placed dependent vacates that dwelling, no further payment under this section shall be made to such person. For the purposes of this paragraph a 'dependent' shall be a person who derives fifty-one percent or more of his income in the form of gifts from any private person or any academic scholarship or stipend. Full--(imc students shall be presumed to be depen. dents but may rebut this presumption by demonstrating that fifty percent or more of &ir income is derived from sources other than gibs from another private person or academic scholarships or stipends. Dependents residing with the family of which they arc a part shall not be entitled to any payment except as a part of the family. (f) Disbursement. Except where specifically provided otherwise, the public entity shall have the authority to disburse payments under this sec- tion in a lump sum, monthly or at other intervals acceptable to the dis- placed person. ¢ 6106. Proration of Payments. n=or the purpose of calculating an alternate payment under section 6098 or a rtplacemcnt housing payment under section 6102 or 6104, two or more individuals (whether they are members of one family or not) living together in and displaced from a single dwelling shall be regarded as one person. Where a tenant is sharing a single-family dwelling with an owner -oc- cupant and paying the owner -occupant rent for the privilege, the tenant shall not be entitled to more than one-half of the rental supplement other- wise payable. The ow-ner-0ccupant shall not be required to share the pay- ment to which 1•,c is entitled or accept a prorated amount. Hrnm-y 1. Amendm=t filed 11-5-76 as an emergency; desipated effective 11-27-76 (Register 76, leo. 4-t). 2. Certificate of Compliance filed 2-16-77 (Register 77, No. 8). 5 6108. Condition of Replacement Dwelling. (a) When a displaced person qualifies for a replacement housing pay- ment (under section 6102 or 6104) by purchasing or renting a replace. ment dwelling, the unit, as a general rule, must be decent, safe and sani- tary. Thcre aro three exceptions. One is described in paragraph 6040(a)(6). The others are: (1) If the purchase of such a dwelling is the result of the public entity's failure to identify a reasonable number of comparable replacement dwellings as required or if the dwelling is one to which the person was referred by the public entity, the condition of the dwelling does not affect eligibility for a replacement housing payment. (2) If the purchase of such a dwelling is not the result of a public enti. ty's referral or failure to refer, the otherwise eligible person qualifies for a replacement housing payment if the unit is brought into compliance with the decent, safe and sanitary standard In this situation payment shall be limited to the amount that would be provided in connection with the purchase of a similar, comparable replacement dwelling or the sum of the actual costs of acquisition (including related expenses) and rmhabilita- tion, whichever is less. (b) A public entity shall not induce or encourage a displaced person to acquire a dwelling which does not satisfy the comparable replacement housing standard. (See section 6008(c).) §6110. Certificate of Eliglblllty. Upon request by a displaced homeowner or tenant who has not yet pur- chased and occupied a replacement dwelling, but who is otherwise eligi- ble for a replacement housing payment, the public entity concerned shall certify to any interested party, financial institution, or lending agency, that the displaced homeowner or tenant will be eligible for the payment of a specific sum if he purchases and occupies a dwelling within the time limits prescribed. §6112. Moblle Homes. (a) General. A mobile home is s dwelling. (See subsection 6008(8).) A person displaced from a mobile home must satisfy the same eligibility requirements and must be provided the same assistance, assurance and payments as a person displaced from a conventional dwelling. (b) Moving Expenses. If a mobile home is moved to another site, the displaced person shall be compensated for moving expenses in accor- dance with sections 6090 and 6092. The provisions of these sections which generally apply only to businesses and farms shall also apply to displaced persons who move a mobile home. (c) Replacement Housing Payments. (1) A person who owns a mobile home and site and as a replacement purchases both a dwelling and site shall be provided a replacement hous- ing payment in accordance with section 6102. A person who owns a mo- bile home and site, and as a replacement rents both a dwelling and site, shall be provided a payment in accordance with section 6104. (2) A person who rents a mobile home and site, and as a replacement rents or purchases a dwelling and site, shall be provided a payment in ac- cordance with section 6104. (3) A person who owns a mobile home and site, and as a replacement purchases a dwelling and rents a site, shall be provided a payment in ac- cordance with sections 6102 and 6104. The payment shall be limited to the lesser of: (A) The amount necessary to purchase a conventional comparable re- placement dwelling; and (B) The amount necessary to purchase a replacement mobile home (in accordance with section 6102) plus the amount necessary to rent a re- placement site (in accordance with section 6104). In calculating this amount, the economic rent for the site shall be used in lieu of average monthly rental to determine the base monthly rental (as provided in para- graph 6104(d)(1)). (4) A person who owns a site from which he moves a mobile home shall be provided a replaamcat housing payment under section 6102 if he purchases a replacement site and under section 6104 if he rents a re- placement site. (5) A person who owns a mobile home which is acquired and rents the site shall be provided payment as follows: (A) If a mobile home is not available the amount required to purchase a conventional replacement dwelling (in accordance with section 6102); (B) The amount necessary to purchase a replacement mobile home (in accordance with section 6102) plus the amount necessary to lease, rent or make a downpayment on a replacement site (in accordance with sec - don 6104); or Page 273 t/-1-901 61-14 BARCLAYS CALIFORNIA CODE OF REGULATIONS (C) If he elects to rent a replacement mobile home and site, the amount required to do so in accordance with section 6104. In calculating this pay- ment, the average monthly rental shall equal the economic rent for the mobile home plus the actual rent for the site. (6) Similar principles shall be applied to other possible combinations of ownership and =ancy upon which a claim for payment might be based. g 6114. Affected Property. (a) In addition to the payments required by Section 72,62 of the Act (see sections 6090, 6092, 6094, 6046, 6098 and 6100), as a cost of acquisition. the public entity shall make a payment to any affected property owner meeting the requirements of this section. (b) Such affected property is immediately contiguous to property ac- quired for airport purposes and the owner shall have owned the property affected by acquisition by the public entity not less than 180 days prior to the initiation of negotiation for acquisition of the acquired property. (c) Such payment, not to exceed fifteen thousand dollars (515,000), shall be the amount, if any, which equals the actual decline in the fair mar- ket value of the property of the affected property owner caused by the ac- quisition by the public entity for airport purposes of other real property and a change in the use of such property. (d) The amount if any, of actual decline in fairmarket value of affected property shall be determined according to rules and regulations adopted by the public entity. Such rules and regulations shall limitpayment under this section only to such circumstances in which the decline in fair market value of affected property is reasonably related to objective physical change in the use of acquired property. (c) "Affected property" means any real property which actually dc - clines in fair market value because of acquisition by a public entity for public use of other real property and a change in the use of the real proper- ty acquired by the public entity. Article 4. Last Resort Housing 6120. Purpose. Tlx purpose of this part is to set forth the criteria and procedures for assuring that if the action of a public entity results, or will result in dis- placement, and comparable replacement housing will not be available as needed, the public entity shall use its funds or funds authorized for the project to provide such housing. §6122. Determination of Need for Last Resort Housing. If on the basis of dataderived from surveys and analyses which satisfy tete requirements of sections 6048 and 6052, the public entity is unable to demonstrate that comparable replacement housing will be available as required. the head of the public entity shall determine whether to use the public entity's fiends or the funds authorized for the project to provide such necessary replacement housing or to modify, suspend or terminate the project or undertaking. ¢ 6124. Development of Replacement Housing Plan. (a) General. (1) Following the determination pursuant to section 6122, the head of the displacing public entity shall develop or cause to be developed a re- placement housing plan to produce a sufficient number of comparable re- placement dwellings. The plan shall specify how, when and where the housing will be provided. how it willbe financed and the amount of funds to be diverted to such housing, the prices at which it will be rented or sold to the families and individuals tobe displaced, the arrangements forhous- ing management and social services as appropriate, the suitability of the location and environmental impact of the proposed housing, the arrange- ments for maintaining rent levels appropriate for the persons to be re- housed, and the disposition of proceeds from cental, sale, orresale of such housing. If a referendum requirement or zoning prssctts an obstacle, the issue shall be addressed. Title 25 (2) All contracts and subcontracts for the construction, rehabilitation or management of last resort housing shall be let without discrimination as to race, sex, marital status, color, religion, national origin, ancestry or other arbitrary circumstance and pursuant to an affirmative action pro- gram. The public entity shall encourage participation by minority per- sons in all levels of construction. rehabilitation, planning. financing and management of last resort housing. When the housing will be located in an area of minority concentration, the public entity shall seek to secure significant participation of minorities in these activities. The public entity shall require that, to the greatest extent feasible, opportunities for training and employment arising in connection with the planning, construction, rehabilitation, and operation of last resort housing be given to persons of low income residing in the area of such housing and shall determine and implement means to secure the participation of small businesses in the performance of contrsets for such work. (b) Citizen Participation. (1) If the need for last resort housing exocods 25 units, the head of the displacing public entity shall establish a committee which will consult with and provide advice and assistance to the displacing public entity in the development of the plan. The committee should include appointed representatives of the displacing entity and state and local agencies knowledgeable regarding housing in the arca, including but not limited to the local housing authority and the central relocation agency, if any. In addition, the committee should include representatives of other appro- priate public groups (for example, local and areawide planning agencies) and private groups knowledgeable regarding housing and the problems of housing discrimination. (2) The committee shall include representatives of the residents to be displaced. These representatives may be appointed by the displacing en- tity or elected by the residents, as the residents wish. Resident rcpresenta- tiV CS shall, at a minimum, constitute one-third of the committee member- ship. Votes shall be allocated so that the total votes of resident representatives shall equal one-half of the total votes of the committee membership. (3) The plan must be approved by the vote of a simple majority of the committee membership. In the event the committee fails to approve the plan, the local governing body or, where the displacing entity is a state agency, the head of the state agency may substitute its approval. (c) Consultation with other Housing Agencies and Organizations. The head of the displacing public entity may consult or contract with the department, a local housing authority, or other agency or organization having experience in the administration or conduct of housing programs to provide technical assistance and advice in the development of the re- placement housing plan. ¢ 6126. Submission of Plan for comment. The head of the displacing public entity shall submit the plan and all significant amendments to the department and local housing and plan- ning agencies forcomment and to assure that the plan accurately reflects housing conditions and needs in the relocation ansa. Reviewing agencies shall have 30 calendar days following receipt of the plan to prepare their comments. Copies of all comments received shall be forwarded to the committee and available to all interested persons. General notice of the plan shall be provided. Notice shall be designed to reach the residents of the relocation area; it shall be in accordance with the provisions of paragraph 6046(a)(3) and subsection 6046(b); and it shall be provided 30 days prior to submission to the committee, or the lo- cal governing body or head of state agency for approval. ¢ 6128. Determination by Displacing Public Entity of Feasibility and compliance. Upon receipt and consideration of the comments, the displacing public entity shall determine whether or not: (a) The plan is feasible. (b) The plan complies with applicable environmental standards and procedures. Page 274 (4-1-90) Tide 25 Deparlment of Housing and Community Development Programs 61w�6 (c) The plan is compatible with the local general plan and housing ele- ment and the areawide housing plan or strategy. If any of the above determinations by the displacing public entity is negative the displacing public entity shall revise the plan as trecessary. Substantial modifications in the plan shall be submitted for review and comment as provided in section 6126. If necessary for timely implemen- tation of the plan or execution of the project„ the head of the displacing public entity may shorten the time allowed in section 6126 for review of modifications. ¢ 6130. Implementation of the Replacement Housing Plan. Upon making the determinations required by section 6128, the head of the displacing entity may expend funds and take such other actions as necessary to provide, rehabilitate, or construct replacement housing pur- suant to the approved replacement housing plan through methods includ- ing but not limited to the following: (a) Transfer of funds to state and local housing agencies. (b) Contract with organizations experienced in the development of housing. (c) Direct construction by displacing public entity. Whenever practicable, the head of the displacing public entity should utilize the services of federal, state, or local housing agencies, or other agencies having experience in d` a administration or conduct of similar housing programs. ¢ 6132. Housing Production. The head of the displacing public entity shall monitor the production of the last resort housing to ensure that it is in accordance with the plan. ¢ 6134. Jointly Sponsored Development Where several agencies are administering programs resulting in resi- dential displacement. opporunities shall be sought for joint development and financing to aggregate resources in order most efficiently to provide replacement housing in sufficient quantity to satisfy the aggregate needs of such programs. 16136. Last Resort Housing In Ueu of Payments. A public entity shall not require a displaced person to accept a dwelling provided pursuant to this Article in lieu of the displaced person's acquisi- tion payment, if any, for the real property from which he is displaced or the relocation payments for which he may be eligible. §6138. Conformity with the Act and Other Statutes, Policles and Procedures. (a) CivilRights and Other Acts. The administration of this Article shall be in accord with the provisions of the Unruh Civil Rights Act (Civil Code, Sections 51 et seq.), the Rumford Act (Health and Safety Cade, Section 35700 et seq.), Section 1 of the Civil Rights Act of 1866 (42 U.S.C. 1982), Titic VI of the Civil Rights Act of 1%4, Title VIII of the Civil Rights Act of 1%8, the Environmental Quality Act of 1970 (Public Resources Code, Section 21 100et seq.) and regulations issued pursuant thereto. (b) Dwelling and Relocation Standards. Determinations made pur- suant to section 6122 and any plan developed and implemented for pro- viding replacement housing and all such housing provided thereunder shall be in conformity with the standards established in the Act and Guidelines. Article 5. Grievance Procedures ¢ 6150. Purpose. The purpose of this article is to set forth guidelines for processing ap- peals from public entity determinations as to eligibility, the amount of payment, and for processing appeals from persons aggrieved by a public entity's failure to refer them to comparable permanent or adequate tem- porary replacement housing. Public entities shall establish procedures to implement the provisions of this Article. ¢ 6152. Right of Review. (a) Any complainant.. that is any person who believes himself ag- grieved by a determination as to eligibility, the amount of payment, the fail= of the public entity to provide comparable permanent or adequate temporary replacement housing or the public entity's property manage- ment practices may, at his election. have his claim mviewed and recon- sidered by the head of the public entity or an authorized designee (other than the person who made the determination in question) in accordance with the procedures set forth in this article, as supplemented by the procF duces the public entity shall establish for such review and reconsidem- tion. (b) A person or organization directly affected by the relocation plan may petition the department to review the final relocation plan of a public entity to determine if the plan is in compliance with state laws and guide- lines or review the implementation of arclocation plan to determine if the public entity is acting in compliance with its relocation plan. Review un- dertaken by the department under this section may be informal or may follow the procedures outlined in Government Code, Sections 11180 et seq. Before conducting an investigation under the Government Code sec- tions, the department should attempt to constrain disputes between par- ties. Failure to petition the department shall not limit a complainant's right to seek judicial review. (c) If a relocation appeals board has been established pursuant to Sea don 33417.5 of the Health and Safety Code, a city by ordinance may des- ignate the board to hear appeals from local public entities which do not have an appeal process. In the absence of such an ordinance, public enti- ties shall establish procedures to implement the provisions of this Article. ¢ 6154. Notification to Complainant. If the public entity denies or refuses to consider a claim, the public enti- ty's notification to clic complainant of its determination shall inform the complainant of its reasons and the applicable proccdures forobtaining re- view of the decision. if necessary, such notification shall be printed in a language other than English in accordance with section 6046. ¢ 6156. Stages of Review by a Public Entity. (a) Request for Further Written Information. A complainant may re- quest the public entity to provide him with a full written explanation of its determination and the basis therefore, if he feels that the explanation accompanying the payment of the claim or notice of the entity's determi- nation was incorrect or inadequate. The public entity shall provide such an explanation to the complainant within three weeks of its receipt of his request (b) Informal Oral Presentation. A complainant may request an infor- mal oral presentation before seeking formal review and reconsideration. A request for an informal oral presentation shall be filed within the period described in subsection (d) of this section, and within 15 days of the re- quest the public entity shall afford the complainant the opportunity to make such presentation. The complainant may be represented by an attor- ney or other person of his choosing. This oral presentation shall enable the complainant to discuss the claim with the head of the public entity or a designee (other than the person who made the initial determination) having authority to revise the initial determination on the claim_ The pub- lic entity shall make a summary of the matters discussed in the oral pre- sentation to be included as part of its file. The right to formal review and reconsideration shall not be conditioned upon requesting an oral presen- tation. (c) Written Request for Review and Reconsideration. At any time within the period described in subsection (d) a complainant may filo a written request for formal review and reconsideration. The complainant may include in the request for review any statement of fact within the complainant's knowledge or belief or other material which may have a beating on the appeal. If the complainant requests more time to gatherand prepare additional material for consideration orreview and demonstrates a reasonable basis therefor, the complainant's request should be granted- Pn17; t�;am 16158 BARCLAYS CALIFORNIA CODE OF REGULATIONS Title 25 (d) Time Limit for Requesting Review. A complainant desiring either an informal oral presentation or seeking a formal review and reconsidera- tion shall make a request to the public entity within eighteen months fol. lowing the date he moves from the property or the date he receives final compensation for the property, whichever is later. 6158. Formal Review and Reconsideration by tete Public Entity. (a) General. The public entity shall consider the request for review and shall decide whether a modification of its initial determination is neces- sary. This review shall be conducted by the head of the public entity or an authorize4 impartial designee. (Me designee may be a committee). A designee shall have the authority to revise the initial determination or the determination of a previous oral presentation. The public entity shall consider every aggrieved person's complaint regardless of form, and shall. if necessary provide assistance to the claimant in preparing the written claim. When a claimant seeks review, the public entity shall in- form him that he has the right to be represented by an attorney, to present his case by oral or documentary evidence, to submit rebuttal evidence, to conduct such cross --examination as may be required for a full and true disclosure of facts, and to seek judicial review once he has exhausted ad- ministrative appeal. (b) Scope of Review. The public cntity shall review and reconsider its initial determination of the claimant's case in tight of: (1) All material upon which the public agency based its original deter. mination including all applicable rules and regulations, except that no cv- idcncc shall be relied upon where a claimant has been improperly denied an opportunity to controvert the evidence or cross --examine the witness. (2) The reasons given by the claimant for requesting review and recon. sideration of the claim. (3) Any additional written or relevant documentary material submined by the claimant (4) Any further information which the public entity in its discretion. obtains by request. investigation, or research, to ensure fair and full re- view of the claim. (c) Determination on Review by Public Entity. (l) The determination on review by the public entity shall include, but is not limited to: (A) The public entity's decision on reconsideration of the claim. (B) The factual and legal basis upon which the decision rests, including any pertinent explanation or rationale. (C) A statement to the claimant of the right to further administrative appeal, if the public entity has such an appeal structure, or if not, a state- ment to the claimant that administrative remedies have been exhausted and judicial review may be sought. (2) The determination shall be in writing with a copy provided to the claimant. (d) Time Limits. (1) The public entity shall issue its determination of review as soon as possible but no later than 6 weeks from receipt of the last material sub- mitted for consideration by the claimant of the date of the hearing, which- ever is later. (2) In the case of complaints dismissed for untimeliness or for any oth- er reason not based on the merits of the claim the public entity shall fur- nish a written statement to the claimant stating the reason for the dismiss- al of the claim as soon as possible but no later than 2 weeks from receipt of the last material submitted by the claimant or the date of the hearing, whichever is later. §6160. Refusals to Waive Time Umitation. Whenever a public entity rejects a request by a claimant for a waiver of the time limits provided in section 6088, a claimant may file a written request for review of this decision in accordance with the procedures set forth in sections 6156 and 6158, except that such written request for re- view shall be filed within 90 days of the claimant's receipt of the public entity's determination. 16162. Exton slon of Time Limits. 'lite time limits specified in Section 6156 may be extended for good cause by the public entity. 16164. Recommendatlons by Third Party. Upon agreement between the claimant and the public entity, a mutual. ly acceptable third party or parties may review the claim and make advi- sory recommendations thereon to the head of the public entity for its fatal determination. In reviewing the claim and making recommendations to the public entity, the third party or parties shall be guided by the provi- sions of this Articic. Except to the extent the confidentiality of material is protected by law or its disclosure is prohibited by law, a public entity shall permit the claimant to inspect all files and records bearing upon his claim or the prosecution of the claimant's grievance. If a claimant is improperly de- nied access to any relevant material bearing on the claim, such material may not be relied upon in reviewing the initial determination. 116166. Review of Files by Clain -ant. Except to the extent the confidentiality of material is protected by law or its disclosure is prohibited by law, a public entity shall permit the claimant to inspect all files and records bearing upon his claim or the prosecution of the claimant's grievance. If a claimant is improperly de- nied access to any relevant material beating on the claim, such material may not be relied upon in rcvicwing the initial determination. ¢ 6168. Effect of Determination on Other Persons. The principles established in all determinations by a public entity shall be considered as precedent for all eligible persons in similar situations re- gsrdless of whether or not a person has filed a written request for review. All written determinations shall be kept on file and available for public review. ¢ 6170. Right to Counsel. Any aggrieved party has a right to representation by legal or other counsel at his expense at any and all stages of the proceedings set forth in these sections. ¢ 6172. Stay of Displacement Pending Review. If a complainant seeks to prevent displacement, the public entity shall not require the complainant to move until at least 20 days after it has made a determination and the complainant has had an opportunity to seek judi- cial review. In all cases the public entity shall notify the complainant in writing 20 days prior to the proposed new date of displacement. ¢ 6174. Joint Complainants. Where more than one person is aggrieved by the failure of the public entity to refer them to comparable permanent or adequate temporary re- placement housing the complainants may join in filing a single written request for review. A determination shall be made by the public entity for each of the complainants. f 6176. Judicial Review. Nothing in this Article shall in any way preclude or limit a claimant from seeking judicial review of aclaim upon exhaustion of such adminis- trative remedies as are available under this Article. Article 6. Acquisition Policies ¢ 6180. Purpose. The purpose of this Article is to set forth the practices to be followed with respect to acquisition of real property by a public entity. Public enti- ties shall, to the greatest extent practicable, be guided by these practices. 16182. Acquisition. (a) A public entity shall make every reasonable effort to acquire prop- erty by negotiation and to do so expeditiously. (b) Before negotiations are initiated (ser subsection 6008(n)) a public entity shall: Page 276 t41-90) Title 25 Department of Hoasing and Community Development Programs 16182 (1) Have the property appraised, giving the owner or his representative designated in writing an opportunity, by reasonable advance written no- tice, to accompany the appraiser during the inspection of the property, (2) If the owner of real property is also the owner of a business con- ducted on the real property to be acquired or on the remainder, inform him of his possible right to compensation for loss of goodwill. The public enti- ty should include a copy of the pertinent provisions of the Emincrrt Do- main Law (Code of Civil Procedure Sections 1230.010 er seq.). (3) Establish an amount it believes to be just compensation for the property, which amount shall, in no event, be less than the public entity's approved appraisal of the fair market value of the property as improved. (c) The determination of just compensation shall be based upon con- sidcration of: (1) The real property being acquired-, (2) Where the real property acquired is partof a larger parcel, the ry, if any, to the remainder, and (3) Loss of goodwill, where the owner of the real property is also the owner of a business conducted upon the property to be acquired or on the remainderand where the provisions of the Eminent Domain Law pertain- ing to compensation for loss of goodwill are satisfied. Goodwill consists of the benefits that accrue to a business as a result of its location, reputa- tion for dependability, skill or quality, and any other circumstw=s re- sulting in probable retention of old or acquisition of new patronage. (d) As soon as possible afar the amount of just compensation is estab- lishcd, the public entity shall offer to acquire the property for the full amount so established and shall provide the owner with a written state- ment of the basis for determination of just compensation. The statement shall include the following: ( I ) A general statement of the public use for which the property is to be acquired. (2) A description of the location and extent of the property to be taken, with sufficient detail for reasonable identification, and the interest to be acquired. (3) An inventory identifying the buildings, strvcntres, fixtures, and other improvements. (4) A recital of the amount of the offer and a statement that such amount (A) Is the full amount believed by the public entity to be ju stcompensa- tion for the property taken: (B) Is not less than the approved appraisal of the fair market value of the property as improved: (C) Disregards any decrease or increase in the fair market value of the real property to be acquired prior to the date of valuation caused by the public improvement for which the property is to be acquired for such pub- lic improvement. other than that due to physical deterioration within the reasonable control of the owner or occupant; and (D) Does not reflect any consideration of or allowance for any reloca- tion assistance and payments or other benefits which the owns is entitled to receive tinder an agreement with the public entity, except for an amount to compensate the owner for that portion of loss of goodwill pro- vided in accordance with Section 6100. (5) If the real property is a portion of a larger parcel, the statement shall include anapportionment of the total estimated just compensation for the partial acquisition between the value of the property being taken and the amount of damage, if any, to the remainder of the larger parcel from which such property is taken. (6) If the owner of the real property to be acquired is also the owner of a business conducted upon the property or the remainder, the statement shall include an indication of the amount of compensation for loss of goodwill. (c) At the initiation of negotiations (see subsection 6008(n)) a public entity shall provide written notification to the owner of a business con- ducted on the real property to be acquired Pr on the remainder, who is not also the owner of the real property, concerning his possible right to com- pensation for loss of goodwill. The public entity should include a copy of the pertinent provisions of the Eminent Domain Law (Code of Civil Procedure, Section 1230.010 et seq.). (f) (1) If after receiving the public entity's offer the owner requests ad. ditional information regarding the determination of just compensation, the public entity shall provide the following information to the extent that the determination of just compensation is based thereon: (A)'Iite date of valuation used. (B) The highest and best use of the property. (C) The applicable zoning. (D) Identification of some of the sales, cont: acts to sell and purchase, and leases supporting the determination of value. (E) If the property is a portion of a larger parcel, a description of the larger parcel. with sufficient detail for reasonable identification. (2) With respect to each sale, contract, or lease provided in accordance with (1)(D) above, the following data should be provided: (A) The names and business or residence addresses, if known, of the parties to the transaction. (B) Tire location of the property subject to the transaction. (C) The date of transaction. (D) 'lire price and other significant terms and circumstances of the transaction, if known. In lieu of stating the other terms and circum- stances, the public entity may, if the document is available for inspection, state the place where and the times when it is available for inspection. (3) The requirements of this subsection do not apply to requests made after an eminent domain proceeding is commenced. (g) Whenever a part of a parcel of property is to be acquired by a public entity for public use and the remainder, or a portion of the remainder, will be left in such size, shape or condition as to constitute an uneconomic remnant the public entity shall offer to acquire the remnant if the owner so desires. For the purposes of these Guidelines an "uneconomic rem- nant" shall be a parcel of real property in which the owner retain an inter- est after partial acquisition of his property and which has little or no utility or value to such owner. (Nothing in this subsection is intended to limit a public entity's authority to acquire real property.) (h) Nothing in this section shall be construed to deprive a tenant of the right to obtain payment for his property interest as otherwise provided by law. (i) (1) Prior to commencement of an eminent domain proceeding the public entity shall make reasonable efforts to discuss with the owner its offer to purchase the owner's real property. The owner shall be given a reasonable opportunity to present material which he believes to be rele- vant as to the question of value and to suggest modification in the pro- posed terms and conditions of the purchase, and the public entity shall carefully consider the owner's presentation. (2) Prior to commencement of an eminent domain proceeding. if the evidence presented by an owner or a material change in the character or condition of the property indicates the need for a new appraisal or if a sig- nificant delay has occurred since the determination of just compensation, the public entity shall have its appraisal updated. Lf a modification in the public entity's determination of just compensation is warranted, an ap- propriatc price adjustment shall be made and the new amount determined to be just compensation shall be promptly offered in writing to the owner. (j) (1) In no event shall the public entity either advance the time of con- demnation, ordefer negotiationsorcondcmnation on the deposit of funds in court for the use of the owner, or take any other action coercive or mis- leading in nature, in order to compel or induce an agreement on the price to be paid for the property. (2) If any interest in property is to be acquired by exercise of the power of eminent domain, the public entity shall promptly institute formal con- demnation proceedings. No public entity shall intentionally make it nec- essary for an owner to institute legal proceedings to prove the fact of the taking of this real property. Pate 277 § 6184 BARCLAYS CALIFOPUNIA CODE OF REGULATIONS Title 25 16184. Notice of Decision to Appralse. Titc public entity shall provide the owner with written notice of its de- cision to appraise the real property as soon as possible after the decision to appraise has been reached. The notice shall state, as a minimum, that: (a) A specific area is being considered for a particular public use; (b) The owner's property has been determined to be located within the arca; and (c) The owner's property, which shall be generally described, may be acquired in connection with the public use. 6185. Time of Offer. The public entity shall make its first written offer as soon as practicable following service of the Notice of Decision to Appraise. (See section 6184.) 6188. Notice of Lend Acquisition Procedures. (a) At the time the public entity notifies an owner of its decision to ap- praise real property it shall furnish the owner a written explanation of its land acquisition procedures, describing in non-technical, understand- able terms the public entity's acquisition procedures and the principal rights and options available to the owner. (b) The notice shall include the following: (1) A description of the basic objective of the public entity's land ac- quisition program and a mf=nce to the availability of the public entity's statement covering relocation benefits for which an owner -.occupant may be eligible; (2) A statement that the ownerorhis representative designated in writ- ing shall be given the opportunity to accompany each appraiser during his inspection of the property. (3) A statement that if the acquisition of any part of real property would leave the owner with an uneconomic remnant as defined in subsection 6182(8) the public entity will offer to acquire the uneconomic remnant; if the owner so desires; (4) A statement that if the owner is not satisfied with the public entity's offer of just compensation he will be given a reasonable opportunity to present relevant material, which the public entity will carefully consider, and that if a voluntary agreement cannot be reached the public entity, as soon as possible, will either institute a formal condemnation proceeding against the property or abandon its intention to acquire the property, giv- ing notice of the laser as provided in section 6190. (S) A statement that construction or development of a project shall be so scheduled that no person lawfully occupying real property shall be re- quired to move from a dwelling (assuming a replacement dwelling as re- quired by these Guidelines will be available) or to move his business or farm operation without at least 90 days written notice from the public en- tity of the date by which the move is required; and (6) A statement that, if arrangements are made to rent the property to an owner or his tenant for a short term or for a period subject to termina- tion by the public entity on short notice, the rental will not exceed the less- or of the fair rental value of the property to short term occupier or the pro rata portion of the fair rental value for a typical rental period. If the owner or tenant is an occupant of a dwelling, the rental for the dwelling shall be within his financial Mans. (See subsection 6008(c).) §6190. Notice of Public Entity's Decision Not to Acquire. Whenever a public entity which has forwarded a Notice of Decision to Appraise or has made a firm offer subsequently decides not to acquire the property, the public entity shall sine a notice in writing on the owner, all persons occupying the property and all other persons potentially eligi- ble forrelocation payments and assistance. This notice shall state that the public entity has decided not to acquire; the property. It shall be served not later than 10 days following the date of the public entity decision not to acquire. 16192. Incidental Expenses. If the teal property is acquired by purchase, the public entity shall pay all reasonable expenses incident to transfer. Among the expenses requir- ing payment are: recording fees, transfer fees and similar expenses inci- dent to the conveyance of real property, and the pro rata portion of charges for public service such as water, sewage and trash collection which are allowable to a period subsequent to the date of transfer of title to the public entity or the effective date of possession of such property by the public entity, whichever is earlier. The public entity shall inform the owner that he may apply for a rebate of the pro rata portion of any marl property taxes paid. Hmmy 1. Amendr =t filed 11-546 as an emergency; designated effective 11-27-76 (Register 76, No. 44). 2. Certificate of Compliance filed 2-16-77 (Register 77, No. 8). f6194. Short Term Rental. (a) If the public permits an owner or tenant to occupy the real property acquired on a rental basis for a short-term or for a period subject to termi- nation by the public entity on short notice, the amount of rent required shall not exceed the lesser of the fairrental value to a short-term occupier or the pro rata portion of the fair rental value for a typical rental period If the owner or tenant is an occupant of a dwelling, the rental for the dwelling shall be within his financial means. (See subsection 6008(c).) (b) A post -acquisition tenant who occupies real property acquired an a rental basis for a short term and who is informed that the property has bccn acquired for a public use shall be given not less than 30 days notice of termination of the tenancy. HisToRY 1. Amendment of subsection (b) filed 11-546 as an emergency: designated ef. fective 11-27-76 (Register 76, No. 44). 2. Certificate of Compliance filed 2-16-77 (Register 77, No. 8). 6195. Public Information. The purchase price and other consideration paid by the public entity is public information and shall be trade available upon request. 6196. Service of Notice. Service of all notices required by this article shall be made either by fust class mail or by personal service upon the person to be notified. J 6198. Nonp033e33ory Interest Exception. The provisions of 6182(b), (c), (d)(4), and (f) and 6188 shall not apply to the acquisition of any easement, right-of-way, covenant or other non - possessory interest in real property to be acquired for the construction, reconstruction, alteration, enlargement, maintenance, renewal, repair or replacement of sub -surface sewers, waterlines or appurtenance, drains, septic tanks, or storm water drains. Attachment A Minimum Contents of Informational Statement(s) Page 278 For Distribution To Business Displaced Concerns Item To Be Included Persons and Others 1. General description of the nature and types of acti- vities that will be underukea. including an iden- tification of areas which may involve displace- ment. A diagrammatic sketch of the project area sbould be arched. x x 2. Statement thatpublic action may result in displace- ment but that no one lawfully occupying per. ty will be required to surrender possessive with out at least 90 days' written notice Som the pub- lic entity and no one will be required to trove un- til 90 days after the provision of information. x x 3. Asat ance that families and individuals will not be required to move before reasonable offen of de- cent, safe, sanitary and otherwise comparable booing within their financial means have been made, except for the arses set forth in the local agency's eviction policy (which shall be is accor- dance with section 6058.) x Page 278 Title 25 Department of Housing and Community Development ProgramS § 6500 Item To Be Included 4. General description of types ofrelocadon payments available, including general eligibility criteria and a caution against premature moves that might re- sult in loss of eligibility for a payment. 5. Identification of the agency's relocation program and a description of the relocation services and aids that will be available. 6. Encouragement to visit the agency's relocation of- fice and cooperate with the staff. The address, telephone number, and hours of the relocation of- fice should be specified. 7. Information on replacement housing, including: a. Brief description of what constitutes compara- ble replacement housing. including physical standards. b. Laymen's description of Federal fair housing law (Tide V111 of Civil Rights Act of 1968), and applicable State and local fair housing laws. as well as rights under Title IV of the Civil Rights Act of 1964. e. Statement that the public entity (or its agent) will identify comparable replacement dwellings within the financial means ofand otherwise avail- able to displaced persons and will provide assis- tance to persons in obtaining housing of their choice, including assistance in the refeml of com- plaints ofdiscriminstion t0 the appropriate Feder- al. State or local fair housine enforcement agency. d. Statement that persons may seek their own housing accommodations and urging them, if they do w, to notify the relocation office prior to mak- ing a commitment to purchase or occupy the property. S. Statement that the public entity will provide maxi mum assistance in locating relocation aecornmo- dations.including consultation with the Small Business Administration and other governmental agencies which might be of assistance. 9. Statement describing requirement for prior notifi- cation to the agency of the business concern's in- tention to move. 10. Summary of the local agency's eviction policy. which shall be in accordance with the provisions of section 6058. 11. Statement describing the agency's grievance pro- cedure, its purpose, and how a maybe used, which procedure shall be in accordance with the provi- sions of Article 5. For Distribution 3. New Subchapter 3. Articles 1-3 (Sections 6300-6350.not consecutive) refiled To 8-2-77 as an emergency: designated effective 8-3-77 (Register 77, No. 32). Business 4. Certificate of Compliance filed 11-29-77 (Register 77, No. 49). 5.Repea1erof Displaced Concerns Subchapter 3 (Sections 6300-6350, not consecutive) filed 6-9-52; effective Persons and Others thirtieth day thereafter (Register 82- No. 24). 5. Repealer of Subchapter 3 (Sections 6300-6_ 50, not consecutive) filed 6-9-92. effective thirtieth day thereafter (Register 82. No. 24). x z Subchapter 4. Housing Element Guidelines x z NOTE Authority cited: Section 50459. Health and Safety Code, and Section 65302(c), Government Code. Reference: Section 65302(c), Govemment Code. HISTORY z x 1. New Subchapter 4 (Sections 6400-.6478) filed 12-7-77. effective thirtieth day thereafter (Register 77. No. 50). 2. Amendment filed 5-t-79 as an emergency: effective upon filing (Register 79, No. 18). x 3. Amendment filed 8-28--79 as an emergency: effective upon filing (Register 79, No. 35). A Certificate of Compliance mu st be filed within 120 days or emer. gency language will be repealed on 12-26-79. 4. Certificate of Compliance filed 10-23-79 (Register 79. No. 43). S. Repealer of Subchapter 4 (Sections 6400-6480. not consecutive) filed 6-9-82; x effective thirtieth day thereafter (Register 82, No. 24). For prior history. see Register 80. No. 18. Subchapter 5. Department of Housing and Community Development --Conflict of x Interest Code x x X z Subchapter 2. California Low -Income Home Management Training Program NOTE Authority cited: Sections 41226 and 50526. Health and Safety Code. Ref- erence: Sections 41220-41229 and 50625-50629. Health and Safety Code. HISTORY I. Renumbering from Chapter 1, Subchapter 4 (Sections 1500-1520, not consecu- tive) to Chapter 6. Subchapter 2 (Sections 6200-6220. not consecutive) filed 1-28-77 as procedural and organizational effective upon filing (Register 77, No. 5). For prior history, see Register 76, No. 18. 2. Repealer of Subchapter 2 (Articles 1-2, Sections 6200--6220, not consecutive) filed 6-19-80;, effective thirtieth day thereafter (Register 80, No. 25). Subchapter 3. Housing Element Guidelines NmT-- Authority cited: Section 50459, Health and Safety Code; and Section 65302(c), Government Code. Reference: Section 65302(c), Government Code. HISTORY I. Renumbering from Chapter I. Subchapter S (Sections 1600-1650, not consecu- tive) to Chapter 6. Subchapter 3 (Sections 6300-6350, not consecutive) filed 1-28-77 as procedural and organimtionaL effective upon filing (Register 77, No. 5). For prior history, see Register 76, No. 50. 2. New Subchapter 3, Articles 1-3 (Sections 6300-6350, not consecutive) rtfikd 4-1-77 as an emergency, designated effective 4-5-77 (Register 77, No. 14). 16500. General Provisions. The Political Reform Act, Government Code Sections 81000, et seq.. requires state and local government agencies to adopt and promulgate Conflict of Interest Codes.'Ibe Fair Political Practices Commission has adopted a regulation. 2 Adm. Code of Regs. Section 18730. which con- tains the terms of a standard Conflict of Interest Code, which can be in- corporated by reference, and which maybe amended by the Fair Political practicesCommissice to conform to amendments in the PoliticalReform Act after public notice and hearings. Therefore, the terms of 2 Cal. Code ofRegs.Sectiou 18730 and any amendments to itdulyadoptedby the Fair Political Practices Commission, along with the attached Appendix in which officials and employees are designated and disclosure categories are set forth. are hereby incorporated by reference and constitute the Con- flict of Interest Code of the Depanmcnt and Commission of Housing and Community Development. Designated employees shall file statements of economic interests with the agency who will make the statements available for public inspection and reproduction. (Gov. Code Section 81008). Upon receipt of the state- ments of the Director, the agency shall make and retain a copy and for- ward the original of these statements to the Fair Political Practices Com- mission. NOTE Authority cited: Section 87300. Government Code. Reference: Sections 8 100 1. 87300 and 87311, Government Code. I-ItsTORY 1. New subchapter 5 (sections 6500-6510 and Appendices A. B and C) filed 2-17-78; effective thirtieth day thereafter. Approved by Fair Political Practices Commission 10-4-77 (Register 78, No. 7). 2. Repealer of subchapter 5 (sections 6500-6510 and Appendices A -C) and new subchapter 5 (section 6500 and Appendix) filed 2-2641; effective thirtieth day thereafter. Approved by Far Political Practices Commission 12-1-80 (Register 81, No. 9). 3. Repealer of subchapter 5 (section 6500 and Appendix) and new subchapter 5 (section 6500 and Appendices A and B) filed 3-19-45; effective upon filing pursuant to Government Code section 11346.2(d). Approved by Far Political Practices Commission 2-13-85 (Register 85,,No. M. 4. Amendment ofAppendices A and B filed 11-17-89; operative 12-17-89. Ap- proved by Fair Political Practices Commission 5-25-89 (Register g9, No. 47). 5. Amendment filed 2-18-92:erative 3-19-91. Submined to OAL forprinting only. Approved by Fair Political PraeticesCommission12-17-91(Regster92, '40.12). 6. Change without regulatory effect amending second paragraph of section, and amending Appendix A and B filed 6-27-96 pursuant to section 100. title I. Cal - Pace 279 R:,- )6, N-. :6, '-'3-';6 § 6500 BARCLAYS CALIFOR.Nlk CODE OF REGULATIONS ifomia Code of Regulations (Register%, No. 26). Approved by Fair Political Practices Commission 5-1-96. Appendix A Designated Positions Persons in the following classes or positions are designated employees and shall make the types of disclosures set forth in the disclosure category listed opposite the position. DISCLOSURE CLASS OR POSITION CATEGORY Office of the Director Director. Chief Deputy Director: Deputy, Directors: Assistant to the Director Assistant Director for External Affairs; Assistant for Policy Development; Staff Services Manager (all levels); Associated Governmental Program Analyst Legal Office Chief Counset"Deputy Director. Staff Counsel (all levels): .............. Tide 25 The Director may determine in writing that a particular consultant. although a -designated position', is hired to perform a ranee of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant duties and based upon that desorption. a statement of the extent of disclosure re. quirements. The Director's determination is a public record and shall be retained for public inspection in the same manner and locations as this conflict of interest code Nom Authority cited: Section 87300, Government Code. Reference: Sections 97100--87311, Government Code. Appendix B Disclosure Categories Financial interests of employees holding positions designated in this I section are to be reported in statements of economic interests as follows: 3 Designated Employees in Category 1 must report (a) All investments and any business positions in any business entity: (b) All sources of income: I (c) All interests in real property (excluding one's primary personal res- idence). Division of Administration and Management Deputy Director ................................................ Staff Services Managers (all levels); Data Processing }tanager (all levels): Staff Programmer Analyst: Staff Information Systems Analyst; Associate Programmer Analysts (Spec. & Supv.) Assoc. Information Systems Analysts (Spec. & Supv.) Accounting Administrators (all levels); Accounting Officers (all levels): Accounting Analyse (all levels); Business Service Officers (all levels): Business Service Assistant: Associate Governmental Program Analysts; Staff Services Analysts (except in the Personnel Office); Man3eement Services Technician: Business Management ............... Designated Employees in Category 2 must report 1 (a) All investments, business positions in, or sources of income from any entity of the type which has, in any manner, been affected by or sub- ject to departmental regulations or policies (excluding regulations or po- licies regarding building or energy standards). (b) All investments, business positions in or sources of income from any entity engaged in the design of, development or rehabilitation of, sale or purchase of, or investment in real property, manufactured or factory— built housing. (c) All investments, business positions in or sources of income from any entity engaged in the design, development. rehabilitation. or con- struction of public facilities. (d) Any interest in real property (excluding one's primary personal residence) situated in any jurisdiction receiving or eligible for funding from or through the section to which the des ignatod employee is assigned. Legislative Division Deputy Director. Assistant Deputy Director ........................... 1 SuffServiees Managers (all levels); Associate Governmental Program Analyst, StaffServices Analyst ........................................ 2&3 Audit Division Chief, Staff Management Auditor, Staff Services Management Auditor, Associate Management Auditors ..... flouring Policy Development Division Deputy Director, Assistant Deputy Director Housing and Community Development Managers (all levels); Housing and Community Development Specialists (all levels); Housing and Community Development Representatives (all levels); ....... Codes and Standards Division Deputy Director: Assistant Deputy Director, Assistant Chief . Civil Engineers (all Levels); Codes and Standards Administrators (all levels); District Representatives (all levels); Staff Services Manager 1; Associate Architect. Mobilehome Registration Manager, Mobilehome Regisaation Supervisor III; Mobilehome Registration Specialist ................... Community Affairs Division Deputy Director. Assistant Deputy Director. Special Assistant to the Deputy Director ............................ Housing and Community Development Representatives (all levels); Housing and Community Development Specialists (all levels): California Indian Housing Representatives (all levels); California Indian Housing Managers (all levels); Housing and Community Development Managers (all levels); Associate Governmental Program Analysts; Management Services Technicians: Staff Services Analysts; Housing Construction and Rehabilitation Specialists; Loan and Grant Comminee Members ............................. . (e) Investments, business positions, or sources of income from anyCO- 5 titywhich is situated or doing business in anyjurisdiction receiving ore U - gible for funding from or through the section to which the designated em- ployee is assigned. Designated Employees in Category 3 must report Investments, business positions in, or sources of income from any 1 business entity of the type which contracts with the department to provide or obtain supplies, materials, services, machinery, or equipment. I Designated Employees in Category 4 must report Investments, business positions, or sources of income from any busi- ness entity which has been subject to or affectedby any regulations or po- licies of the department relating to mobilebomes, manufactured homes. factory -built housing, mobilehome parks, labor camps, recreational ve- 4 bicles, commercial coaches, or any other programs or policies adminis- tered by the division. Designated Employees in Category 5 must report: I Investments in, income from, and positionsheld with business entitites wh ich were the subject of an audit during the reporting period. If the em- ployer has not participated in an audit during the reporting period. If the employee has not participated in an audit during the course of the report- ing period in which he or she has a financial interest, then the employee shall sign a statement to that effect under penalty of perjury. Such state- ment shall be filed and processed as though it were the disclosure state- ment required by the Standard Code. An employee who participated in an audit in which he or she has a financial interest shall disclose that inter- est as described above, but such statement shall be delivered to the filing Consultants* offer who will fele the statement as a public record. *Consultants shall disclose pursuant to the broadest disclosure category in the Nom- Authority cited.• Scction 87300, Government Code, Reference: Sections code subject to the following limitation: 97300-87311, Government Code. Page 280 tt�%;aa 96. N.. 26: 6-5-96 EXHIBIT B STATE RELOCATION LAW Government Code Sections 7260 - 7277 (Relocation Law) 7260. As used in this chapter: (a) 'Public entity' includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public -corporation in the state or any entity acting on behalf of these agencies when 0 saa�g, Yocca, Carlaoo & Rsmh, 1995 A-27 acquiring real property, or any interest therein, in any city or county for public use and any person who has the authority to acquire property by eminent domain under state law. (b) "Person" means any individual, partnership, corporation, limited liability company, or association. (c) (1) 'Displaced person' means both of the following: (A) Any person who moves from real property, or who moves his or her personal property from real property, either: (i) As a direct result of a written notice of intent to acquire or the acquisition of the real property, in whole or in part, for a program or project undertaken by a public entity or by any person having an agreement with or acting on behalf of a public entity. (ii) As a direct result of the rehabilitation, demolition, or other displacing activity as the public entity may prescribe under a program or project undertaken by a public entity, of real property on which the person is a residential tenant or conducts a business or farm operation, in any case in which the public entity determines that the displacement is permanent. For purposes of this subparagraph, "residential tenant" includes any occupant of a residential hotel unit, as defined in subdivision (b) of Section 50669 of the Health and Safety Code, and any occupant of employee housing, as defined in Section 17008 of the Health and Safety Code, but shall not include any person who has been determined to be in unlawful occupancy of the displacemdnt dwelling. (B) Solely for the purposes of Sections 7261 and 7262, any person who moves from real property, or moves his or her personal property from real property, either: (i) As a direct result of a written notice of intent to acquire or the acquisition of other real property, in whole or in part, on which the person conducts a business or farm operation, for a program or project undertaken by a public entity. (ii) As a direct result of the rehabilitation, demolition, or other displacing activity as the public entity may prescribe under a program or project undertaken by a public entity, of other real property on which the person conducts a business or farm operation, in any case in which the public entity determines that the displacement is permanent. (2) The definition contained in this subdivision shall be construed so that persons displaced as a result of public action receive relocation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for or in connection with a public use where the public entity is otherwise empowered to acquire the property to carry out the public use. Except persons or families of low and moderate income, as defined in Section 50093 of the Health and Safety Code, who are occupants of housing which was made available to them on a permanent basis by a public agency and who are required to move from the housing, a "displaced person" shall not include any of the following: (A) .. Any person who has been determined to be in unlawful occupancy of the displacement dwellings. 10 Str�, Yo=, Carlson & Rwth, 1995 A-28 (B) Any person whose right of possession at the time of moving arose after the date of the public entity's acquisition of the real property. (C) Any person who has occupied the real property for the purpose of obtaining assistance under this chapter. (D) In any case in which the public entity acquires property for a program or project (other than a person who was an occupant of the property at the time it was acquired), any person who occupies the property for a period subject to termination when the property is needed for the program or project. (3) (A) Notwithstanding Section 7265.3 or any other provision of law, a person who is temporarily displaced for not more than 180 days, and who is offered occupancy of a comparable replacement unit located within the same apartment complex that contains the unit from which he or she has been displaced, shall not be deemed a 'displaced person' for the purposes of this chapter. This paragraph shall be applicable only if all of the following conditions are complied with: (i) All other financial benefits and services otherwise required under this chapter are provided to the tenants temporarily displaced from their units. (ii) The resident is offered the right to return to his or her original unit, with rent for the first 12 months subsequent to that return being the lower of the following: up to 5 percent higher than the rent at the time of displacement; or up to 25 percent of household income. (iii) The temporary unit is not unreasonably impacted by the effects of the construction, taking into consideration the ages and physical conditions of the members of the displaced household, and the estimated period of displacement is reasonable. (iv) The property is a qualified affordable housing preservation project. (B) For the purposes of this paragraph: (i) "Apartment complex" means four or more residential rental units subject to common ownership and financing that are also located on the same or contiguous parcels. (ii) 'Qualified affordable housing preservation project' is any complex of four or more units whose owners enter into a recorded regulatory agreement, having a term for the useful life of the project, with any entity for the provision of project rehabilitation financing. For this purpose, the regulatory agreement shall require of the owner and all successors and assigns of the owner, as long as the regulatory agreement is in effect, that at least 49 percent of the tenants in the project shall have, at the time of the recordation of the regulatory agreement required by this section, incomes not in excess of 60 percent of the area median income, adjusted by household size, as determined by the appropriate agency of the State of California. In addition, a project shall be defined as a qualified affordable housing preservation project only if the beneficiary of the regulatory agreement elects this designation by so indicating on the regulatory agreement. SYCR 1994 A-29 (d) 'Business' means any lawful activity, except a farm operation, conducted for any of the following: (1) Primarily for the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property. (2) Primarily for the sale of services to the public. (3) Primarily by a nonprofit organization. (4) Solely for the purpose of Section 7262 for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not the display is located on the premises on which any of the above activities are conducted. (e) 'Farm operation' means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operator's support. (f) "Affected property" means any real property which actually declines in fair market value because of acquisition by a public entity for public use of other real property and a change in the use of the real property acquired by the public entity. (g) "Public use" means a use for which real property may be acquired by eminent domain. (h) "Mortgage" means classes of liens that are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby. (i) 'Comparable replacement dwelling' means any dwelling that is all of the following: (1) Decent, safe, and sanitary. (2) Adequate in size to accommodate the occupants. (3) In the case of a displaced person who is a renter, within the financial means of the displaced person. A comparable replacement dwelling is within the financial means of a displaced person if the monthly rental cost of the dwelling minus any replacement housing payment available to the person does not exceed 25 percent of the person's average monthly income. (4) Comparable with respect to the number of rooms, habitable space, and type and quality of construction. Comparability under this paragraph shall not require strict adherence to a detailed, feature -by -feature comparison. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features shall be present. (5) In an area not subject to unreasonable adverse environmental conditions. SYCR 1994 A-30 (6) In a location generally not less desirable than the location of the displaced persons dwelling with respect to public utilities, facilities, services, and the displaced person's place of employment. 0) "Displacing agency' means any public entity or person carrying out a program or project which causes a person to be a displaced person for a public project. (k) "Appraisal" means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information. (1) "Small business" means a business as defined in Part 24 of Title 49 of the Code of Federal Regulations. (m) "Lead agency" means the Department of Housing and Community Development. 7260.5. (a) The Legislature finds and declares the following: (1) Displacement as a direct result of programs or projects undertaken by a public entity is caused by a number of activities, including rehabilitation, demolition, code enforcement, and acquisition. (2) Relocation assistance policies must provide for fair, uniform, and equitable treatment of all affected persons. (3) The displacement of businesses often results in their closure. (4) Minimizing the adverse impact of displacement is essential to maintaining the economic and social well-being of communities. (5) Implementation of this chapter has resulted in burdensome, inefficient, and inconsistent compliance requirements and procedures which may be improved by establishing a lead agency. (b) This chapter establishes a uniform policy for the fair and equitable treatment of persons displaced as a direct result of programs or projects undertaken by a public entity. The primary purpose of this chapter is to ensure that these persons shall not suffer disproportionate injuries as a result of programs and projects designed for the benefit of the public as a whole and to minimize the hardship of displacement on these persons. (c) The Legislature intends all of the following: (1) Public entities shall carry out this chapter in a manner which minimizes waste, fraud, and mismanagement and reduces unnecessary administrative costs. SYCR 1994 A-31 (2) Uniform procedures for the administration of relocation assistance shall, to the maximum extent feasible, assure that the unique circumstances of any displaced person are taken into account and that persons in essentially similar circumstances are accorded equal treatment under this chapter. (3) The improvement of housing conditions of economically disadvantaged persons under this chapter shall be undertaken, to the maximum extent feasible, in coordination with existing federal, state, and local government programs for accomplishing these goals. (4) The policies and procedures of this chapter shall be administered in a manner which is consistent with fair housing requirements and which assures all persons their rights under Title VIII of that act of April 11, 1968 (Public Law 90-284), commonly known as the Civil Rights Act of 1968 and Title VI of the Civil Rights Act of 1964. 7260.7. Notwithstanding any other provision of law, in furtherance of the goal set forth in paragraph (3) of subdivision (c) of Section 7260.5*, nonprofit facilities subsidized pursuant to any federal or state program for the benefit of low-income tenants that restrict rent increases based on operating cost increases, and that also receive state funds for renovation and rehabilitation involving the temporary relocation of those tenants, shall be exempt from any restrictions on rents imposed pursuant to this chapter. 7261. (a) Programs or projects undertaken by a public entity shall be planned in a manner that (1) recognizes, at an early stage in the planning of the programs or projects and before the commencement of any actions which will cause displacements. the problems associated with the displacement of individuals, families, businesses, and farm operations, and (2) provides for the resolution of these problems in order to minimize adverse impacts on displaced persons and to expedite program or project advancement and completion. The head of the displacing agency shall ensure the relocation assistance advisory services described in subdivision (c) are made available to all persons displaced by the public entity. If the agency determines that any person occupying property immediately adjacent to the property where the displacing activity occurs is caused substantial economic injury as a result thereof, the agency may make the advisory services available to the person. (b) In giving this assistance, the public entity may establish local relocation advisory assistance offices to assist in obtaining replacement facilities for persons, businesses, and farm operations which find that it is necessary to relocate because of the acquisition of real property by the public entity. (c) This advisory assistance shall include those measures, facilities, or services which are necessary or appropriate to do all of the following: (1) Determine and make timely recommendations on the needs and preferences, if any, of displaced persons for relocation assistance. SYCR 1994 A-32 (2) Provide current and continuing information on the availability, sales prices, and rentals of comparable replacement dwellings for displaced homeowners and tenants, and suitable locations for businesses and farm operations. (3) Assure that, within a reasonable time period prior to displacement, to the extent that it can be reasonably accomplished, there will be available in areas not generally less desirable in regard to public utilities and public and commercial facilities, and at rents or prices within the financial means of displaced families and individuals, decent, safe, and sanitary dwellings, sufficient in number to meet the needs of, and available to, those displaced persons requiring those dwellings and reasonably accessible to their places of employment, except that, in the case of a federally funded project, a waiver may be obtained from the federal government. (4) Assure that a person shall not be required to move from a dwelling unless the person has had a reasonable opportunity to relocate to a comparable replacement dwelling, except in the case of any of the following: Act of 1974. (A) A major disaster as defined in Section 102(2) of the federal Disaster Relief (B) A state of emergency declared by the President or Governor. (C) Any other emergency which requires the person to move immediately from the dwelling because continued occupancy of the dwelling by the person constitutes a substantial danger to the health or safety of the person. (5) Assist a person displaced from a business or farm operation in obtaining and becoming established in a suitable replacement location. (6) Supply information concerning other federal and state programs which may be of assistance to those persons in applying for assistance under the program. (7) Provide other advisory services to displaced persons in order to minimize hardships to those persons. (d) The head of the displacing agency shall coordinate its relocation assistance program with the project work necessitating the displacement and with other planned or proposed activities of other public entities in the community or nearby areas which may affect the implementation of its relocation assistance program. (e) Notwithstanding subdivision (c) of Section 7260, in any case in which a displacing agency acquires property for a program or project, any person who occupies the property on a rental basis for a short term or a period subject to termination when the property is needed for the program or project, shall be eligible for advisory services to the extent determined by the displacing agency. 7261.5. In order to prevent unnecessary expenses and duplications of functions, and to promote uniform and effective administration of relocation assistance programs for displaced persons under this chapter, a public entity may enter into a contract with any individual, firm, association, or corporation for services in connection with such program, or may carry out its functions under SYCR 1994 A-33 this chapter through any federal, state, or local governmental agency having an established organization for conducting relocation assistance programs. Any public entity may, in carrying out its relocation assistance activities, utilize the services of state or local housing agencies or other agencies having experience in the administration or conduct of similar housing assistance activities. 7262. (a) Whenever a program or project to be undertaken by a public entity will result in the displacement of any person, the displaced person is entitled to payment for actual moving and related expenses as the public entity determines to be reasonable and necessary, including expenses for all of the following: (1) Actual and reasonable expenses in moving himself or herself, his or her family, business, or farm operation, or his or her, or his or her family's, personal property. (2) Actual direct losses of tangible -personal property as a result of moving or discontinuing a business or farm operation, but not to exceed an amount equal to the reasonable expenses that would have been required to relocate the property, as determined by the public entity. (3) Actual and reasonable expenses in searching for a replacement business or farm~ not to exceed one thousand dollars ($1,000). (4) Actual and reasonable expenses necessary to reestablish a displaced farm, nonprofit organization, or small business at its new site, but not to exceed ten thousand dollars ($10,000). (b) Any displaced person eligible for payments under subdivision (a) who is displaced from a dwelling and who elects to accept the payments authorized by this subdivision in lieu of the payments authorized by subdivision (a) shall receive a moving expense and dislocation allowance which shall be determined according to a schedule established by the head of the lead agency. The schedule shall be consistent with the Residential Moving Expense and Dislocation Allowance Payment Schedule established by Part 24 of Title 49 of the Code of Federal Regulations. (c) Any displaced person who moves or discontinues his or her business or farm operation and elects to accept the payment authorized by this subdivision in lieu of the payment authorized by subdivision (a), shall receive a fixed relocation payment in an amount equal to the average annual net earnings of the business or farm operation, except that the payment shall not be less than one thousand dollars ($1,000) nor more than twenty thousand dollars ($20,000). In the case of a business, no payment shall be made under this subdivision, unless the public entity is satisfied that the business cannot be relocated without substantial loss of patronage and is not part of a commercial enterprise having at least one other establishment not being acquired, engaged in the same or similar business. For purposes of this subdivision, the term 'average annual net earnings' means one-half of any net earnings of the business or farm operation before federal, state, and local income taxes during the two taxable years immediately preceding the taxable year in which the business or farm operation moves from the real property being acquired, or during any other period as the public entity determines to be more equitable for establishing earnings, and includes any compensation paid by the business or farm operation to the owner, his or her spouse, or his or her dependents during the two-year or other period. To be eligible for the payment authorized by this subdivision, the business or farm operation shall make available its state income tax records, financial statements, and SYCR 1994 A-34 accounting records, for confidential use pursuant to an audit to determine the payment pursuant to this subdivision. In regard to an outdoor advertising display, payment pursuant to this subdivision shall be limited to the amount necessary to physically move, or replace that display. Any displaced person eligible for payments under subdivision (a) who is displaced from the person's place of business or farm operation and who is eligible under criteria established by the public entity, may elect to accept a fixed payment in lieu of the payment authorized by subdivision (a). The fixed payment shall not be less than one thousand dollars ($ 1,000) nor more than twenty thousand dollars (S20,000). A person whose sole business at the displacement dwelling is the rental of the property to others shall not qualify for a payment under this subdivision. (d) Whenever the acquisition of real property used for a business or farm operation causes the person conducting the business or farm operation to move from other real property, or to move his or her personal property from other real property, the person shall receive payments for moving and related expenses under subdivision (a) or (b) and relocation advisory assistance under Section 7261 for moving from the other property. (e) Whenever a public entity must pay the cost of moving a displaced person under paragraph (1) of subdivision (a), or subdivision (d): (1) The costs of the move shall be exempt from regulation by the Public Utilities Commission. (2) The public entity may solicit competitive bids from qualified bidders for performance of the work. Bids submitted in response to the solicitations shall be exempt from regulation by the Public Utilities Commission. (f) No provision of this chapter shall be construed to require a public entity to provide any relocation assistance to a lessee if the property acquired for a program or project is subject to a lease for purposes of conducting farm operations and the public entity agrees to assume all of the terms of that lease. 7262.5. (a) Notwithstanding Section 7265.3 or any other provision of law, tenants residing in any multifamily rental project of four or more units who are displaced from the project for a period of 180 days or less as part of a rehabilitation of that project, that is funded in whole or in part by a public entity, shall not be deemed permanently displaced if all of the following criteria are satisfied: (1) All other financial benefits and services otherwise required under this chapter are provided to the tenants temporarily displaced from their units, including relocation to a comparable replacement unit. (2) The resident is offered the right to return to his or her original unit, with rent for the first 12 months subsequent to that return being the lower of the following: up to 5 percent higher than the rent at the time of displacement; or up to 25 percent of household income. SYCR 1994 A-35 (3) The estimated time of displacement is reasonable, and the project is a qualified affordable housing preservation project. (b) For the purposes of this section, "qualified affordable housing preservation project' shall have the meaning set forth in subparagraph (B) of paragraph (3) of subdivision (c) of Section 7260. 7263. (a) In addition to the payments required by Section 7262, the public entity, as a part of the cost of acquisition, shall make a payment to the owner of real property acquired for public use which is improved with a dwelling actually owned and occupied by the owner as a permanent or customary and usual place of abode for not less than 180 days prior to the initiation of negotiation for the acquisition of that property. (b) The payment, not to exceed twenty-two thousand five hundred dollars ($22,500), shall be based on the following factors: (1) The amount, if any, which, when added to the acquisition cost of the dwelling acquired by the public entity equals the reasonable cost of a comparable replacement dwelling. (2) The amount, if any, which will compensate the displaced owner for any increased interest costs which the owner is required to pay for financing the acquisition of a comparable replacement dwelling. The amount shall be paid only if the dwelling acquired by the displacing agency was encumbered by a bona fide mortgage which was a valid lien on the dwelling for not less than 180 days inunediately prior to the initiation of negotiations for the acquisition of the dwelling. All of the mortgages on the acquired dwelling shall be used to compute the payment. The amount shall be computed using the lesser of the principal balance of the mortgage on the replacement dwelling or the outstanding principal balance of the mortgage on the acquired dwelling and the lesser of the remaining term on the acquired dwelling or the actual term of the new mortgage. The present value of the increased interest costs shall be computed based on the lesser of the prevailing interest rate or the actual interest rate on the replacement property. The amount shall also include other reasonable debt service costs incurred by the displaced owner. For the purposes of this subdivision, if the replacement dwelling is a mobilehome, the term "mortgage," as defined in subdivision (h) of Section 7260, shall include those liens as are commonly given to secure advances on, or the unpaid purchase price of, mobilehomes, together with the credit instruments, if any, secured thereby. (3) Reasonable expenses incurred by the displaced owner for evidence of title, recording fees, and other closing costs incident to the purchase of the replacement dwelling, but not including prepaid expenses. (c) The additional payment authorized by this section shall be made only to a displaced owner who purchases and occupies a decent, safe, and sanitary replacement dwelling within one year from the later of the following: SYCR 1994 A-36 (1) The date thedisplaced person receives final payment for the displacement dwelling, or in the case of condemnation, the date the full amount of estimated just compensation is deposited in court. (2) The date the displacing agency fulfills its obligation to make available at least one comparable replacement dwelling to the displaced person. However, the displacing agency may extend the period for good cause. Also, the displaced owner and the public entity may agree in writing that the displaced owner may remain in occupancy of the acquired dwelling as a tenant of the public entity on the conditions that the displaced owner shall only be entitled to the payment authorized by this section on the date on which the owner moves from the acquired dwelling and that the payment shall be in an amount equal to that to which the owner would have been entitled if the owner had purchased and occupied a replacement dwelling one year subsequent to the date on which final payment was received for the acquired dwelling from the public entity. (d) In implementing this chapter, it is the intent of the Legislature that special consideration be given to the financing and location of a comparable replacement dwelling for displaced persons 62 years of age or older. 7263.5. For purposes of Section 7263, the leasing of a condominium for a 99 -year period, or for a term which exceeds the life expectancy of the displaced person as determined from the most recent life tables in Vital Statistics of the United States, as published by the Public Health Service of the Department. of Health, Education, and Welfare, shall be deemed a purchase of the condominium. 7264. (a) In addition to the payments required by Section 7262, as a part of the cost of acquisition, the public entity shall make a payment to any displaced person displaced from any dwelling not eligible to receive a payment under Section 7263 which was actually and lawfully occupied by the person as a permanent or customary and usual place of abode for not less than 90 days prior to the initiation of negotiation by the public entity for the acquisition of the dwelling, or in any case in which displacement is not a direct result of acquisition, or any other event which the public entity shall prescribe. (b) The payment, not to exceed five thousand two hundred fifty dollars ($5,250), shall be the additional amount which is necessary to enable the person to lease or rent a comparable replacement dwelling for a period not to exceed 48 months. However, publicly funded transportation projects shall make payments enabling the person to lease or rent a comparable replacement dwelling for a period not to exceed 42 months, including compensation for utilities, as provided in subdivision (b) of Section 24.402 of Part 24 of Title 49 of the Code of Federal Regulations. Payments up to the maximum of five thousand two hundred fifty dollars ($5,250) shall be made in a lump sum. Should an agency pay pursuant to Section 7264.5 an amount exceeding the maximum amount, payment may be made periodically. Computation of a payment under this subdivision to a low-income displaced person for a comparable replacement dwelling shall take into account the person's income. SYCR 1994 A-37 (c) Any person eligible for a payment under subdivision (a) may elect to apply the payment to a down payment on, and other incidental expenses pursuant to, the purchase of a decent, safe, and sanitary replacement dwelling. The person may, at the discretion of the public entity, be eligible under this subdivision for the maximum payment allowed under subdivision (b), except that, in the case of a displaced homeowner who has owned and occupied the displacement dwelling for at least 90 days but not more than 180 days immediately prior to the initiation of negotiations for the acquisition of the dwelling, the payment shall not exceed the payment which the person would otherwise have received under subdivision (b) of Section 7263 had the person owned and occupied the displacement dwelling 180 days immediately prior to the initiation of the negotiations. (d) In implementing this chapter, it is the intent of the Legislature that special consideration shall be given to assisting any displaced person 62 years of age or older to Iocate or lease or rent a comparable replacement dwelling. 7264.5. (a) If a program or project undertaken by the public entity cannot proceed on a timely basis because comparable replacement housing is not available and the public entity determines that comparable replacement housing cannot otherwise be made available, the public entity shall take any action necessary or appropriate to provide the dwellings by use of funds authorized for the project. This section shall be construed to authorize the public entity to exceed the maximum amounts which may be paid under Sections 7263 and 7264 on a case-by-case basis for good cause as determined in accordance with rules and regulations adopted by the public entity. Where a displacing agency is undertaking a project with funds administered by a state agency or board, and where the displacing agency has adopted rules and regulations in accordance with Section 7267.8 for the implementation of this chapter, the determination of payments to be made pursuant to this subdivision shall be pursuant to those rules and regulations. (b) No person shall be required to move from his or her dwelling because of its acquisition by a public entity, unless comparable replacement housing is available to the person. (c) For purposes of determining the applicability of subdivision (a), the public entity is hereby designated as a duly authorized administrative body of the state for the purposes of subdivision (c) of Section 408 of the Revenue and Taxation Code. (d) Subdivision (b) shall not apply to a displaced owner who agrees in writing with the public entity to remain in occupancy of the acquired dwelling as provided in subdivision (c) of Section 7263. 7265. (a) In addition to the payments required by Section 7262, as a cost of acquisition, the public entity shall make a payment to any affected property owner meeting the requirements of this section. (b) The affected property shall be immediately contiguous to property acquired for airport purposes and the owner shall have owned the property affected by acquisition by the public entity not less than 180 days prior to the initiation of negotiation for acquisition of the acquired property. SYCR 1994 A-38 (c) The payment, not to exceed twenty-two thousand five hundred dollars ($22,500), shall be the amount, if any, which equals the actual decline in the fair market value of the property of the affected property owner caused by the acquisition by the public entity for airport purposes of other real property and a change in the use of the property. (d) The amount, if any, of actual decline in fair market value of affected property shall be determined according to rules and regulations adopted by the public entity pursuant to this chapter. The rules and regulations shall limit payment under this section only to those circumstances in which the decline in fair market value of affected property is reasonably related to objective physical change in the use of acquired property. 7265.3. (a) A public entity may make payments in the amounts it deems appropriate, and may provide advisory assistance under this chapter, to a person who moves from a dwelling or who moves or discontinues his business, as a result of impending rehabilitation or demolition of a residential or commercial structure, or enforcement of building, housing, or health codes by a public entity or because of systematic enforcement pursuant to Section 37924.5 of the Health and Safety Code, or who moves from a dwelling or who moves or discontinues a business as a result of a rehabilitation or demolition program or enforcement of building codes by the public entity, or because of increased rents to result from such rehabilitation or code enforcement. Payments prescribed by subdivision (b) of Section 7264 may also be made to persons who remain in a dwelling during rehabilitation. Payments authorized by this section and made pursuant to subdivision (b) of Section 7264 may, at the option of the public entity, be computed and reviewed annually based on actual rental increases, and may be paid monthly or annually. A public entity may also give priority to a person who moves from a dwelling, or who remains in a dwelling during rehabilitation, in utilization of local, state, or federal rental assistance programs, either to enable the person to pay increased rents or to move to other suitable housing. A public entity assisting in the financing of rehabilitation may provide some or all of the payments authorized by this section as part of the loan for rehabilitation costs, provided that the public entity makes payments directly to the person who moves or who remains in the dwelling during rehabilitation. (b) A public entity shall make payments in the amounts prescribed by this chapter, and shall provide advisory assistance under this chapter, to persons and families of low or moderate income, as defined in Section 50093" of the Health and Safety Code, whose rent, within one year after the rehabilitation of their dwelling is completed, is increased to an amount exceeding 25 percent of their gross income, or who move from their dwelling, as the result of a rehabilitation program in which the rehabilitation work is wholly or partially financed or assisted with public funds provided by or through the public entity. (c) A public entity shall provide temporary housing for up to 90 days to persons displaced by rehabilitation work which is wholly or partially financed or assisted with public funds provided by or through the public entity. (d) A person displaced by rehabilitation work which is wholly or partially financed or assisted with public funds provided by or through the public entity shall, as a condition of the SYCR 1994 A-39 financing or assistance, be given the option of relocating, after rehabilitation, in the dwelling from which the person was displaced: (e) A public entity may limit the amounts of payments made pursuant to subdivision (b), otherwise calculated pursuant to subdivision (b) of Section 7264, to the lesser of: (i) the difference between the increased rent and 25 percent of gross income; or (ii) the difference between the increased rent and the rent immediately before the rehabilitation which was greater than 25 percent of gross income. (f) The payments and advisory assistance as required in this section shall be mandatory only if federal or state funds are available. However, nothing shall preclude the public entity from using local funds. 7265.4. In addition to the payments required by Section 7262, as a cost of acquisition, the public entity, as soon as practicable after the date of payment of the purchase price or the date of deposit in court of funds to satisfy the award of compensation in a condemnation proceeding to acquire real property, whichever is the earlier, shall reimburse the owner, to the extent the public entity deems fair and reasonable, for expenses the owner necessarily incurred for recording fees, transfer taxes, and similar expenses incidental to conveying such real property to the public entity. 7266. (a) If a relocation appeals board has been established pursuant to Section 33417.5 of the Health and Safety Code, a city by ordinance may designate the board to hear appeals from all public entities, except those state agencies which have an appeal process on the eligibility for, or the amount of, a payment authorized by this chapter. (b) Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by this chapter may have the application reviewed by the public entity or by the relocation appeals board if authorized under subdivision (a). The review of a determination by a community redevelopment agency may only be made by a relocation appeals board established pursuant to Section 33417.5 of the Health and Safety Code. 7267. In order to encourage and expedite the acquisition of real property by agreements with owners, to avoid litigation and relieve congestion in the courts, to assure consistent treatment for owners in the public programs, and to promote public confidence in public land acquisition practices, public entities shall, to the greatest extent practicable, be guided by the provisions of Section 7267.1 to 7267.7, inclusive, except that the provisions of subdivision (b) of Section 7267.1 and Section 7267.2 shall not apply to the acquisition of any easement, right-of-way, covenant, or other nonpossessory interest in real property to be acquired for the construction, reconstruction, alteration, enlargement, maintenance, renewal, repair, or replacement of subsurface sewers, waterlines or appurtenances, drains, septic tanks, or storm water drains. 7267.1. (a) The public entity shall make every reasonable effort to acquire expeditiously real property by negotiation. SYCR 1994 A-40 (b) Real property shall be appraised before the initiation of negotiations, and the owner, or the owner's designated representative, shall be given an opportunity to accompany the appraiser during his or her inspection of the property. However, the public entity may prescribe a procedure to waive the appraisal in cases involving the acquisition by sale or donation of property with a low fair market value. 7267.2. (a) Prior to adopting a resolution of necessity pursuant to Section 1245.230 and initiating negotiations for the acquisition of real property, the public entity shall establish an amount which it believes to be just compensation therefor, and shall make an offer to the owner or owners of record to acquire the property for the full amount so established, unless the owner cannot be located with reasonable diligence. The offer may be conditioned upon the legislative body's ratification of the offer by execution of a contract of acquisition or adoption of a resolution of necessity or both. In no event shall the amount be less than the public entity's approved appraisal of the fair market value of the property. Any decrease or increase in the fair market value of real property to be acquired prior to the date of valuation caused by the public improvement for which the property is acquired, or by the likelihood that the property would be acquired for the improvement, other than that due to physical deterioration within the reasonable control of the owner or occupant, shall be disregarded in determining the compensation for the property. The public entity shall provide the owner of real property to be acquired with a written statement of, and summary of the basis for, the amount it established as just compensation. Where the property involved is owner occupied residential property and contains no more than four residential units, the homeowner shall, upon request; be allowed to review a copy of the appraisal upon which the offer is based. Where appropriate, the just compensation for the real property acquired and for damages to remaining real property shall be separately stated. (b) Notwithstanding subdivision (a), a public entity may make an offer to the owner or owners of record to acquire real property for less than an amount which it believes to be just compensation therefor if (1) the real property is offered for sale by the owner at a specified price less than the amount the public entity believes to be just compensation therefor, (2) the public entity offers a price which is equal to the specified price for which the property is being offered by the landowner, and (3) no federal funds are involved in the acquisition, construction, or project development. (c) As used in subdivision (b), "offered for sale" means any of the following: (1) Directly offered by the landowner to the public entity for a specified price in advance of negotiations by the public entity. (2) Offered for sale to the general public at an advertised or published, specified price set no more than six months prior to and still available at the time the public entity initiates contact with the landowner regarding the public entity's possible acquisition of the property. 7267.3. The construction or development of a public improvement shall be so scheduled that, to the greatest extent practicable, no person lawfully occupying real property shall be required to move from a dwelling, assuming a replacement dwelling will be available, or to move his business SYCR 1994 A-41 or farm operation, without at least 90 days' written notice from the public entity of the date by which such move is required. 7267.4. If the public entity permits an owner or tenant to occupy the real property acquired on a rental basis for a short term, or for a period subject to termination by the public entity on short notice, the amount of rent required shall not exceed the fair rental value of the property to a short-term occupier. 7267.5. In no event shall the public entity either advance the time of condemnation, or defer negotiations or condemnation and the deposit of funds in court for the use of the owner, or take any other action coercive in nature, in order to compel an agreement on the price to be paid for the property. 7267.6. If any interest in real property is to be acquired by exercise of the power of eminent domain, the public entity shall institute formal condemnation proceedings. No public entity shall intentionally make it necessary for an owner to institute legal proceedings to prove the fact of the taking of his real property. 7267.7. (a) If the acquisition of only a portion of a property would leave the remaining portion in such a shape or condition as to constitute an uneconomic remnant, the public entity shall offer to acquire the entire property if the owner so desires. (b) A person whose real property is being acquired in accordance with this chapter may, after the person has been fully informed of his or her right to receive just compensation for the property, donate the property, any part thereof, any interest therein, or any compensation paid therefor to a public entity determined by the person. 7267.8. (a) All public entities shall adopt rules and regulations to implement payments and to administer relocation assistance under this chapter. These rules and regulations shall be in accordance with the rules and regulations adopted by the Department of Housing and Community Development. (b) Notwithstanding subdivision (a), with respect to a federally funded project, a public entity shall make relocation assistance payments and provide relocation advisory assistance as required under federal law. [See also Health and Safety Code, Section 50460*] 7267.9. (a) Prior to the initiation of negotiations for acquisition by a public entity or public utility of nonprofit, special use property, as defined by Section 1235.155 of the Code of Civil Procedure, the acquiring public entity or public utility shall make every reasonable effort to seek alternative property which is other than nonprofit, special use property. However, this requirement shall not SYCR 1994 A-42 apply to properties acquired by public entities for transportation purposes, including, but not limited to, the construction, expansion, or improvement of streets, highways, or railways. (b) This section does not apply to actions or proceedings commenced by a public entity or public utility to acquire real property or any interest in real property for the use of water, sewer, electricity, telephone, natural gas, or flood control facilities or rights-of-way where those acquisitions neither require removal or destruction of existing improvements, nor render the property unfit for the owner's present or proposed use. 7269. (a) No payment received by any person under this chapter or as tenant relocation assistance required by any state statute or local ordinance shall be considered as income for the purposes of the Personal Income Tax Law, Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax Law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. (b) No payment received by any person under this chapter shall be considered as income or resources to any recipient of public assistance and such payments shall not be deducted from the amount of aid to which the recipient would otherwise be entitled under any other provisions of law. 7269.1. Where a recipient of relocation benefits payments under federal or state law is also a general assistance recipient under Part 5 (commencing with Section 17000) of Division 9 of the Welfare and Institutions Code and two or more rent schedules apply to the recipient, the highest shall prevail and any excess amount over lower rent schedule shall not be counted as income or resources for general assistance purposes under Part 5 (commencing with Section 17000) of Division 9 of the Welfare and Institutions Code. 7270. Nothing contained in this chapter shall be construed as creating in any condemnation proceedings brought under the power of eminent domain any element of damages not in existence on the date of enactment of this chapter. 7271. If any provision of this chapter or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. 7272. If under any other provision of law of this state the owner or occupant of real property acquired by a public entity for public use is given greater protection than is provided by Sections 7265.3 to 7267.8, inclusive, the public entity shall also comply with such other provision of law. 7272.3. It is the intent of the Legislature, by this chapter, to establish minimum requirements for relocation assistance payments by public entities. This chapter shall not be construed to limit any other authority which a public entity may have to make other relocation assistance payments, or to make any relocation assistance payment in an amount which exceeds the maximum amount for such payment authorized by this chapter. SYCR 1994 A-43 Any public entity may, also, make any other relocation assistance payment, or may make any relocation assistance payment in an amount which exceeds the maximum amount for such payment authorized by this chapter, if the making of such payment, or the payment in such amount, is required under federal law to secure federal funds. 7272.5. Nothing contained in this article shall be construed as creating in any condemnation proceeding brought under the power of eminent domain, any element of damages not in existence on the date the public entity commences to make payments under the provisions of this article as amended by the act which enacted this section at the 1971 Regular Session of the Legislature. 7273. Funds received pursuant to Sections 2106 and 2107 of the Streets and Highways Code may be expended by a city to compensate displaced persons for their moving expenses because of the construction of city highways or streets. 7274. Section 7267 to 7267.7, inclusive, create no rights or liabilities and shall not affect the validity of any property acquisitions by purchase or condemnation. 7275. Whenever any public entity acquires real property by eminent domain, purchase, or exchange, the purchase price and other consideration paid by such entity is public information and shall be made available upon request from the entity concerned. 7276. (a) If a resolution is adopted under Section 1245.330 of the Code of Civil Procedure consenting to the acquisition of property by eminent domain and the person authorized by the resolution to acquire the property by eminent domain acquires the property by purchase, eminent domain, or otherwise, that person shall provide relocation advisory assistance and shall make any of the payments required to be made by public entities pursuant to the provisions of this chapter in conformity with this chapter and the guidelines adopted by the Commission of Housing and Community Development pursuant to Section 7268. (b) This section does not apply to public utilities which are subject to the provisions of Article 6 (commencing with Section 600) of Chapter 3 of Part 1 of Division 1 of the Public Utilities Code or to public entities which are subject to this chapter. 7277. (a) The requirement to provide relocation assistance and benefits imposed by this chapter shall not apply to a purchase of property which is offered for sale by the owner, property being sold at execution or foreclosure sale, or property being sold pursuant to court order or under court supervision if the property in any of the foregoing situations is either occupied by the owner or is unoccupied, and if the offer for sale is not induced by public entity disposition, planned condemnation, or redevelopment of surrounding lands, and if the sales price is fair market value or less, as determined by a qualified appraiser, and if no federal funds are involved in the acquisition, construction, or project development. 'Offered for sale" means either advertised for sale in a publication of general circulation published at least once a week or listed with a licensed real estate broker and published in a multiple listing, pursuant to Section 1087 of the Civil Code. SYCR 1994 A-44 (b) At the time of making an offer to acquire property under subdivision (a), public entities shall notify the property owner in writing, of the following: - (1) The public entity's plans for developing the property to be acquired or the surrounding property. (2) Any relocation assistance and benefits provided pursuant to state law which the property owner may be foregoing. -61 SYCR 1994 A-45 REDEVELOPMENT PLAN FOR THE DIAMOND BAR ECONOMIC REVITALIZATION AREA Prepared: March, 1997 Adopted: , 1997 by Ordinance No. Prepared for: Diamond Bar Redevelopment Agency 21660 East Copley Drive, Suite 100 Diamond Bar, California 91765-4177 (909) 396-5666 Prepared by: Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, California 92705 714/541-4585 REDEVELOPMENT PLAN FOR THE DIAMOND BAR REDEVELOPMENT AGENCY DIAMOND BAR ECONOMIC REVITALIZATION AREA SECTION I. (100) INTRODUCTION A. (101) General This is the Redevelopment Plan for the Diamond Bar Economic Revitalization Area ("Plan"), located in the City of Diamond Bar, County of Los Angeles, State of California. It consists of the text (Sections 100 through 1100), the Project Area Map of the Diamond Bar Economic Revitalization Area ("Project Area") (Exhibit A), the legal description of the Project Area boundaries (Exhibit B), and a listing of the proposed projects, public facilities, and infrastructure improvement projects (Exhibit C). This Plan has been prepared by the Diamond Bar Redevelopment Agency ("Agency") pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000, et seg.), the California Constitution and all applicable laws and ordinances. It does not present a specific plan for the redevelopment, rehabilitation and revitalization of any area within the Project Area; instead, it establishes a process and framework within which specific development plans will be presented, priorities for specific projects will be established, and specific solutions will be proposed and by which tools are provided to the Agency to fashion, develop and proceed with such specific plans, projects and solutions. This Plan is based upon the Preliminary Plan formulated and adopted by the Diamond Bar Planning Commission and the Agency on October 28, 1996 and November 19, 1996, respectively. SECTION II. (200) GENERAL DEFINITIONS The following definitions will be used generally in the context of this Plan unless otherwise specified herein: A. "Agency" means the Diamond Bar Redevelopment Agency. B. "Agency Board" means the governing body of the Agency. C. "Adopting Ordinance" means Ordinance No. adopted by the City Council on 1997, adopting this Plan for the Diamond Bar Economic Revitalization Area. D. "City" means the City of Diamond Bar, California. DiambarVedplan 1 03/11/97 E. "City Council" means the legislative body of the City. F. "County" means the County of Los Angeles, California. G. "Disposition and Development Agreement" means an agreement between a developer and the Agency that sets forth terms and conditions for improvement and redevelopment. H. "General Plan" means the City's General Plan, a comprehensive and long- term General Plan for the physical development of the City as provided for in Section 65300 of the California Government Code. I. "Map" means the Map of the Project Area attached hereto as Exhibit A. J. "Method of Relocation" means the methods or plans adopted by the Agency pursuant to Sections 33352(f) and 33411 of the Redevelopment Law for the relocation of families, persons, businesses, and nonprofit local community institutions to be temporarily or permanently displaced by actions of the Agency. K. "Owner Participation Agreement" means an agreement between the Agency and a property owner or tenant which sets forth terms and conditions for improvement and redevelopment. L. "Owner Participation Rules" means the Rules Governing Participation and Reentry Preferences by Property Owners, Operators of Businesses, and Business Tenants for the Diamond Bar Economic Revitalization Area. M. "Person" means an individual(s), or any public or private entities. N. "Plan" means the Redevelopment Plan for the Diamond Bar Economic Revitalization Area. O. "Project" means the Diamond Bar Economic Revitalization Area. P. "Project Area" means the Diamond Bar Economic Revitalization Area, which is the territory this Plan applies to, as shown on Exhibit A. Q. "Redevelopment Law" means the California Community Redevelopment Law (Health and Safety Code, Sections 33000, et seq.). R. "State" means the State of California. DiambarVedplan 2 03/11/97 SECTION III. (300) PROJECT AREA BOUNDARIES The boundaries of the Project Area are illustrated on the map attached hereto and incorporated herein as Exhibit A. The legal description of the boundaries of the Project Area is as described in Exhibit B attached hereto and incorporated herein. SECTION IV. (400) REDEVELOPMENT PLAN GOALS Implementation of this Plan is intended to achieve the following goals: 1. Implement the policies, goals, objectives and strategies as presented in the General Plan for the City of Diamond Bar. 2. Eliminate and prevent the spread of conditions of blight, including but not limited to: underutilized properties and deteriorating buildings, incompatible and uneconomic land uses, deficient infrastructure and facilities, obsolete structures, and other economic deficiencies, in order to create a more favorable environment for commercial, industrial, office, residential, and recreational development. 3. Provide opportunities for retail and other non-residential commercial and office uses. 4. Promote the economic development of the Project Area by providing an attractive, well -serviced, well -protected environment for all residents and visitors. S. Improve public facilities and public infrastructure to provide adequate infrastructure facilities and public services. 6. Promote local job opportunities in the community. 7. Encourage the cooperation and participation of residents, businesses, business persons, public agencies, and community organizations in the economic revitalization of the Project Area. 8. Implement design and use standards to assure high aesthetic and environmental quality, and provide unity and integrity to developments within the Project Area. 9. Preserve and enhance the unique, open space resources in the community. DiambarVedplan 3 03/11/97 10. Provide and regulate the provision of the supply of parking to meet the needs of both residents and commercial businesses. 11. Remove impediments to land disposition and development through the assembly of property into reasonably sized and shaped parcels served by improved infrastructure and public facilities. 12. Recycle and/or develop underutilized parcels to accommodate higher and better economic uses while enhancing the City's financial resources. 13. Increase, improve, and preserve the supply of housing affordable to very low, low and moderate income households. SECTION V. (500) REDEVELOPMENT ACTIONS A. (501) General The Agency proposes to eliminate and prevent the recurrence of blight, and improve the economic base of the Project Area by: Acquiring, installing, developing, constructing, reconstructing, redesigning, planning, replanning, or reusing streets, curbs, gutters, sidewalks, traffic control devices, utilities, flood control facilities and other public improvements and public facilities. 2. Rehabilitating, altering, remodeling, improving, modernizing, clearing, or reconstructing buildings, structures and improvements. 3. Rehabilitating, preserving, developing or constructing affordable housing in compliance with State law. 4. Providing the opportunity for owners and tenants presently located in the Project Area to participate in redevelopment projects and programs, and extending preferences to occupants to remain or relocate within the redeveloped Project Area. 5. Providing relocation assistance to displaced residential and nonresidential occupants, if necessary. 6. Facilitating the development or redevelopment of land for purposes and uses consistent with this Plan. Diambaftedplan 4 03/11/97 7. Acquiring real property by purchase, lease, gift, grant, request, devise or any other lawful means (including eminent domain), after the conduct of appropriate hearings. 8. Combining parcels and properties where and when necessary. 9. Preparing building sites and constructing necessary off-site improvements. 10. Providing for open space. 11. Managing property owned or acquired by the Agency. 12. Assisting in procuring financing for the construction of residential, commercial, and office buildings to increase the residential and commercial base of the Project Area, and the number of temporary and permanent jobs in the City. 13. Disposing of property including, without limitation, the lease or sale of land at a value determined by the Agency for reuse in accordance with this Plan. 14. Establishing controls, restrictions or covenants running with the land, so that property will continue to be used in accordance with this Plan. 15. Vacating or abandoning streets, alleys, and other thoroughfares, as necessary, and dedicating other areas for public purposes consistent with the objectives of this Plan. 16. Providing replacement housing, if any is required. 17. Applying for and utilizing grants, loans and any other assistance from federal or State governments, or other sources. 18. Taking actions the Agency determines are necessary and consistent with State, federal and local laws to make structural repairs to buildings and structures, including historical buildings, to meet building code standards related to seismic safety. 19. Taking actions the Agency determines are necessary and consistent with State, federal and local laws to remedy or remove a release of hazardous substances on, under or from property within the Project Area or to remove hazardous waste from property. DiambarVedplan 5 03/11/97 20. From time to time preparing and carrying out plans for the improvement, rehabilitation, and redevelopment of blighted areas, disseminating redevelopment information and creating a variety of economic development programs which will help build a stronger economic base within the Project Area. An Agency program may consist of assisting businesses with the following: advertising in brochures, promoting trade fairs, creating displays, developing videos, and any other appropriate media which will attract other businesses and consumers to the area. The Agency may also assist with job training programs, moving expenses, and providing other incentives to attract industrial type businesses to the area such as tax credits. 21. Assisting businesses in the Project Area with facade improvements and general rehabilitation by providing loans and grants. 22. Adopting specific design guidelines for projects to ensure a consistent design theme which will guide rehabilitation, new development, developers, architects, and builders. To accomplish these actions and to implement this Plan, the Agency is authorized to use the powers provided in this Plan, and the powers now or hereafter permitted by the Redevelopment Law and any other State law. The Agency will not pursue one or more public projects which will displace a substantial number of low-income persons or moderate -income persons, or both. B. (502) Property Acquisition (503) Acquisition of Real Property The Agency may acquire real property, any interest in property, and any improvements on it by any means authorized by law including, without limitation, by gift, grant, exchange, purchase, cooperative negotiations, lease, option, bequest, devise or eminent domain. To the extent required by law, the Agency shall not acquire real property on which an existing building is to be continued on its present site and in its present form and use without the consent of the owner, unless: (1) such building requires structural alteration, improvement, modernization or rehabilitation; or (2) the site or lot on which the building is situated requires modification in size, shape or use; or (3) it is necessary to impose upon such property any of the standards, restrictions and controls of this Plan and the owner fails or refuses to participate in the Plan by executing an Owner Participation Agreement. DiambarVedplan 6 03/11/97 Except as otherwise provided herein, or otherwise provided by law, no eminent domain proceeding to acquire property within the Project Area shall be commenced after twelve (12) years following the date of adoption of the Adopting Ordinance. Such time limitation may be extended only by amendment of this Plan. 2. (504) Acquisition of Personal Property Where necessary in the implementation of this Plan, the Agency is authorized to acquire personal property in the Project Area by any lawful means. C. (505) Participation by Owners and Persons Engaged in Business 1. (506) Owner Participation This Plan provides for participation in the redevelopment of property in the Project Area by the owners of all or part of such property if the owners agree to participate in the redevelopment in conformity with this Plan. Opportunities to participate in the redevelopment of property in the Project Area may include without limitation the rehabilitation of property or structures; the retention of improvements; the development of all or a portion of the participant's property; the acquisition of adjacent or other properties from the Agency; purchasing or leasing properties in the Project Area; participating with developers in the improvement of all or a portion of a participant's properties; or other suitable means consistent with objectives and proposals of this Plan and with the Agency's rules governing owner participation and re-entry. In addition to opportunities for participation by individual persons and firms, participation, to the extent it is feasible, shall be available for two or more persons, firms or institutions, to join together in partnerships, corporations, or other joint entities. The Agency desires participation in redevelopment activities by as many owners and business tenants as possible. However, participation opportunities shall necessarily be subject to and limited by such minimum factors as the expansion of public or public utilities facilities; elimination and changing of land uses; realignment of streets; the ability of the Agency and/or owners and business tenants to finance acquisition and development activities in accordance with this Plan; and whether the proposed activities conform to and further the goals and objectives of this Plan. Diambar\redplan 7 03/11/97 2. (507) Reentry Preferences for Persons Engaged in Business in the Project Area The Agency shall extend reasonable preferences to persons who are engaged in business in the Project Area to relocate and reenter in business in the redeveloped area, if they otherwise meet the requirements prescribed by this Plan and the Agency's rules governing owner participation and re- entry. 3. (508) Owner Participation Agreements Under an Owner Participation Agreement, the participant shall agree to rehabilitate, develop, or use the property in conformance with this Plan and be subject to the provisions hereof. Pursuant to the Owner Participation Agreement, participants who retain real property shall be required to join in the recordation of such documents as are necessary to make the provisions of this Plan applicable to their properties. In the event a participant breaches the terms of an Owner Participation Agreement, the Agency may declare the Agreement terminated and may acquire the real property or any interest therein, and may sell or lease such real property or interest therein for rehabilitation or development in accordance with this Plan. If conflicts develop between the desires of participants for particular sites or land uses, the Agency is authorized to establish reasonable priorities and preferences among the owners and tenants. Where the Agency determines that a proposal for participation is not feasible, is not in the best interests of the Agency or City, or that redevelopment can best be accomplished without affording a participant an opportunity to execute an Owner Participation Agreement, the Agency shall not be required to execute such an agreement. D. (509) Implementing Rules The provisions of Sections 505-508 of this Plan shall be implemented according to the Owner Participation Rules adopted by the Agency prior to the adoption of the Adopting Ordinance, which may be amended from time to time by the Agency. Such Owner Participation Rules allow for Owner Participation Agreements with the Agency. Diambairedplan 8 03/11/97 E. (5 10) Cooperation with Public Bodies Certain public bodies are authorized by State law to aid and cooperate, with or without consideration, in the planning and implementation of activities authorized by this Plan. The Agency shall seek the aid and cooperation of such public bodies and shall attempt to coordinate the implementation of this Plan with the activities of such public bodies in order to accomplish the purposes of redevelopment and to achieve the highest public good. The Agency is authorized to acquire real property devoted to public use through eminent domain, but property of a public body shall not be acquired without its consent. The Agency shall seek the cooperation of all public bodies which own or intend to acquire property in the Project Area. Any public body which owns or leases property in the Project Area will be afforded all the privileges of owner and business tenant participation if such public body is willing to enter into an Owner Participation Agreement with the Agency. All plans for development of property in the Project Area by a public body shall be subject to Agency approval. The Agency may impose on all public bodies the planning and design controls contained in and authorized by this Plan to ensure that present uses and any future development by public bodies will conform to the requirements of this Plan. The Agency is authorized, to the extent permissible by law, to financially (and otherwise) assist public bodies in the cost of public land, buildings, facilities, structures or other improvements (within or outside the Project Area) where such land, buildings, facilities, structures, or other improvements are of benefit to the Project Area. F. (511) Property Mana e� ment During such time as property, if any, in the Project Area is owned by the Agency, such property shall be under the management and control of the Agency. Such properties may be rented or leased by the Agency pending their disposition. G. (512) Payments to Taxing Agencies The Agency may pay, but is not required to pay, in any year during which it owns property in the Project Area that is tax exempt, directly to any City, County or district, including, but not limited to, a school district, or other public corporation for whose benefit a tax would have been levied upon such property had it not been tax exempt, an amount of money in lieu of taxes that may not exceed the amount of money the public entity would have received if the property had not been tax exempt. The Agency will also be required to make statutory pass-through payments to affected taxing entities in accordance with Redevelopment Law. Diambar\redplan 9 03/11/97 H. (513) Relocation of Persons Displaced by a Project 1. (514) Relocation Program In accordance with the provisions of the California Relocation Assistance Law (Government Code Section 7260, et seg.), the guidelines adopted and promulgated by the California Department of Housing and Community Development (the "Relocation Guidelines") and the Method of Relocation adopted by the Agency, the Agency shall provide relocation benefits and assistance to all persons (including families, business concerns and others) displaced by Agency acquisition of property in the Project Area or as otherwise required by law. Such relocation assistance shall be provided in the manner required by the Method of Relocation. In order to carry out a redevelopment project with a minimum of hardship, the Agency will assist displaced households in finding decent, safe and sanitary housing within their financial means and otherwise suitable to their needs. The Agency shall make a reasonable effort to relocate displaced individuals, families, and commercial and professional establishments within the Project Area. The Agency is also authorized to provide relocation for displaced persons outside the Project Area. 2. (515) Relocation Benefits and Assistance The Agency shall provide all relocation benefits required by law and in conformance with the Method of Relocation, Relocation Guidelines, Relocation Assistance Act, the Redevelopment Law, and any other applicable rules and regulations. I. (516) Demolition Clearance Public Improvements Site Preparation and Removal of Hazardous Waste (517) Demolition and Clearance The Agency is authorized, for property acquired by the Agency or pursuant to an agreement with the owner of property, to demolish, clear or move buildings, structures, or other improvements from any real property as necessary to carry out the purposes of this Plan. Diambaesedplan 10 03/11/97 2. (518) Public Improvements To the extent permitted by law, the Agency is authorized to install and construct or to cause to be installed and constructed the public improvements and public utilities (within or outside the Project Area) necessary to carry out the purposes of this Plan. Such public improvements include, but are not limited to: over or underpasses; bridges; streets; curbs; gutters; sidewalks; street lights; sewers; storm drains; traffic signals; electrical distribution systems, natural gas distribution systems; cable TV systems; water distribution systems; parks; plazas; playgrounds; motor vehicle parking facilities; landscaped areas; schools; libraries; civic, cultural, and recreational facilities; pedestrian improvements, or other improvements allowed by Redevelopment Law. A list of proposed public facilities and infrastructure improvement projects is included in the projects list set forth in Exhibit C and incorporated herein by reference. The Agency, as it deems necessary to carry out the Plan and subject to the consent of the City Council, may pay all or part of the value of the land for and the cost of the installation and construction of any building allowed by Redevelopment Law, facility, structure or other improvement which is publicly owned either within or outside the Project Area, upon both the Agency Board and the City Council making the applicable determinations required pursuant to the Redevelopment Law. When the value of such land or the cost of the installation and construction of such building, facility, structure or other improvement, or both, has been, or will be, paid or provided for initially by the City or other public corporation, the Agency may enter into a contract with the City or other public corporation under which it agrees to reimburse the City or other public corporation for all or part of the value of such land or all or part of the cost of such building, facility, structure or other improvements, or both, by periodic payments over a period of years. Any obligation of the Agency under such contract shall constitute an indebtedness of the Agency for the purposes of carrying out this Plan. 3. (519) Preparation of Building Sites The Agency may develop as a building site any real property owned or acquired by it. In connection with such development it may cause, provide, or undertake or make provisions with other agencies for the installation, or construction of streets, utilities, parks, playgrounds and other public improvements necessary for carrying out this Plan in the Project Area. Diambar\redplan 11 03/11/97 4. (520) Removal of Hazardous Waste To the extent legally allowable, the Agency may take any actions which the Agency determines are necessary and which are consistent with other State and federal laws, to remedy or remove a release of hazardous substances on, under, or from property within the Project Area. J. (52 1) Rehabilitation Moving of Structures by the Agency and Seismic Repairs 1. (522) Rehabilitation and Conservation The Agency is authorized to rehabilitate and conserve, or to cause to be rehabilitated and conserved, any property, building or structure in the Project Area owned by the Agency. The Agency is also authorized to advise, encourage, and assist (through a loan program or otherwise) in the rehabilitation and conservation of property, buildings or structures in the Project Area not owned by the Agency to the extent permitted by the Redevelopment Law. The Agency is authorized to acquire, restore, rehabilitate, move and conserve buildings of historic or architectural significance. It shall be the purpose of this Plan to allow for the retention of as many existing businesses as practicable and to enhance the economic life of these businesses by a program of voluntary participation in their conservation and rehabilitation. The Agency is authorized to conduct a program of assistance and enforcement to encourage owners of property within the Project Area to upgrade and maintain their property consistent with this Plan and such standards as may be developed for the Project Area. The extent of rehabilitation in the Project Area shall be subject to the discretion of the Agency based upon such objective factors as: a. Compatibility of rehabilitation with land uses as provided for in this Plan. b. Economic feasibility of proposed rehabilitation and conservation activity. C. Structural feasibility of proposed rehabilitation and conservational activity. DiambarVedplan 12 03/11/97 d. The undertaking of rehabilitation and conservation activities in an expeditious manner and in conformance with the requirements of this Plan and such property rehabilitation standards as may be adopted by the Agency. e. The need for expansion of public improvements, facilities and utilities. f. The assembly and development of properties in accordance with this Plan. The Agency may adopt property rehabilitation standards for the rehabilitation of properties in the Project Area. 2. (523) Moving of Structures As necessary in carrying out this Plan, the Agency is authorized to move, or to cause to be moved, any building, structures or other improvements from any real property acquired which can be relocated to a location within or outside the Project Area, and rehabilitated. 3. (524) Seismic Repairs For any project undertaken by the Agency within the Project Area for building rehabilitation or alteration in construction, the Agency may, by following all applicable procedures which are consistent with local, State, and federal law, take those actions which the Agency determines are necessary to provide for seismic retrofits. K. (525) Property Disposition and Development 1. (526) Real Property Disposition and Development a. (527) General For the purposes of this Plan, the Agency is authorized to sell, lease, exchange, subdivide, transfer, assign, pledge, encumber by mortgage or deed of trust, or otherwise dispose of any interest in real property. To the extent permitted by law, the Agency is authorized to dispose of real property by negotiated sale or lease without public bidding. Except as otherwise permitted by law, before any interest in property of the Agency acquired in whole or in part, directly or indirectly, with tax increment moneys is sold or Diambaz\redplan 13 03/11/97 leased for development pursuant to this Plan, such sale or lease shall be first approved by the City Council after public hearing. Except as otherwise permitted by law, no real property acquired by the Agency, in whole or in part, directly or indirectly, with tax increment, or any interest therein, shall be sold or leased for development pursuant to the Plan for an amount less than its fair market value, or the fair reuse value at the use and with the covenants, conditions and development costs authorized by the sale or lease. Unless otherwise permitted by law, the real property acquired by the Agency in the Project Area shall be leased or sold, except property conveyed by the Agency to the community or any other public body. Any such lease or sale shall be conditioned on the redevelopment and use of the property in conformity with the Redevelopment Plan. Real property may be conveyed by the Agency to the City, and where beneficial to the Project Area, to any other public body without charge or for an amount less than fair market value. All purchasers or lessees of property from the Agency shall be obligated to use the property for the purposes designated in this Plan, to begin and complete improvement of such property within a period of time which the Agency fixes as reasonable, and to comply with other conditions which the Agency deems necessary to carry out the purposes of this Plan. During the period of redevelopment in the Project Area, the Agency shall ensure that all provisions of this Plan, and other documents formulated pursuant to this Plan, are being observed, and that development of the Project Area is proceeding in accordance with applicable development documents and time schedules. All development, whether public or private, must conform to this Plan and all applicable federal, State, and local laws, including without limitation the City's planning and zoning ordinances, building, environmental and other land use development standards. Such development must receive the approval of all appropriate public agencies. Diambar\redplan 14 03/11/97 b. (528) Purchase and Development Documents To provide adequate safeguards to ensure that the provisions of this Plan will be carried out and to prevent the recurrence of blight, all real property sold, leased, or conveyed by the Agency, as well as all property subject to Owner Participation Agreements, shall be made subject to the provisions of this Plan by leases, deeds, contracts, agreements, declarations of restrictions, provisions of the planning and zoning ordinances of the City, conditional use permits, or other means. Where appropriate, as determined by the Agency, such documents or portions thereof shall be recorded in the office of the Recorder of the County. Leases, deeds, contracts, agreements, and declarations of restrictions of the Agency may contain restrictions, covenants, covenants running with the land, rights of reversion by the owner, or any other provisions necessary to carry out this Plan. The Agency shall reserve such powers and controls in Disposition and Development Agreements or similar agreements as may be necessary to prevent transfer, retention, or use of property for speculative purposes and to ensure that redevelopment is carried out pursuant to this Plan. The Agency shall obligate purchasers and lessees of real property acquired in redevelopment projects and owners of property improved as part of a redevelopment project to refrain from discrimination or segregation based upon race, color, creed, religion, national origin, ancestry, sex, or marital status in the sale, lease, sublease, transfer, use occupancy, tenure or enjoyment of property in the Project Area. All property sold, leased, conveyed, or subject to Disposition and Development Agreements shall be expressly subject by appropriate documents to the restriction that all deeds, leases, or contracts for the sale, lease, sublease or other transfer of land in the Project Area shall contain such nondiscrimination and non -segregation clauses as are required by law, 2. (529) Personal Property Disposition For the purposes of this Plan, the Agency is authorized to sell, lease, exchange, subdivide, transfer, assign, pledge, encumber, or otherwise dispose of personal property. DiambarVedplan 15 03/11/97 L. (530) Provision for Low and Moderate Income Housing (531) Definition of Terms Unless otherwise permitted or required by law, the terms "affordable housing cost", "replacement dwelling unit", "persons and families of low or moderate income", "substantially rehabilitated dwelling units" and "very low income households" as used herein shall have the meanings as now defined by the Redevelopment Law, or may hereafter be amended, and other State and local laws and regulations pertaining thereto. 2. (532) Authority Generally The Agency may, inside or outside the Project Area: acquire real property, buildings sites, buildings or structures, donate real property, improve real property or building sites, construct or rehabilitate buildings or structures, and take any other such actions as may be permitted by the Redevelopment Law, in order to provide housing for persons and families of low or moderate income. 3. (533) Replacement Housing Except as otherwise permitted by law, whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low and moderate income housing market as part of a redevelopment project, the Agency shall, within four years of such destruction or removal, rehabilitate, develop or construct, or cause to be rehabilitated, developed or constructed, for rental or sale to persons and families of low or moderate income, an equal number of replacement dwelling units which have an equal or greater number of bedrooms as those destroyed or removed units at affordable housing costs within the territorial jurisdiction of the Agency. Except as otherwise permitted by law, seventy-five percent (75%) of the replacement dwelling units shall replace dwelling units available at affordable housing costs in the same income level of very low income households, lower income households, and persons and families of low and moderate income as the persons displaced from those units destroyed. The Agency may replace destroyed or removed dwelling units housing persons and families of low or moderate income with a fewer number of replacement dwelling units if the replacement dwelling units have a greater or equal number of bedrooms and are affordable to the same income level of households as the destroyed or removed units to the extent permissible by law as it now exists or may hereafter be amended. DiambarVedplan 16 03/11/97 4. (534) New or Rehabilitated Dwelling Units Developed Within the Project Area Unless otherwise permitted by law, at least thirty percent (30%) of all new and substantially rehabilitated dwelling units developed by the Agency shall be available at affordable housing cost to persons and families of low or moderate income and of such thirty percent (30%), not less than fifty percent (50%) shall be available to and occupied by very low income households. Unless otherwise permitted by law, at least fifteen percent (15%) of all new and substantially rehabilitated dwelling units developed within the Project Area by public or private entities or persons other than the Agency shall be available at affordable housing cost to persons and families of low or moderate income and of such fifteen percent (15%), not less than forty percent (40%) shall be available at affordable housing cost to very low income households. The percentage requirements set forth in this Section 534 shall apply independently of the requirements of Section 533 of this Plan and in the aggregate to the supply of housing to be made available pursuant to this Section 534 and not to each individual case of rehabilitation, development or construction of dwelling units. Pursuant to Section 33413(b)(4) of the Redevelopment Law, the Agency shall prepare and adopt a plan to comply with the requirements set forth above, for the Project Area. The plan shall be consistent with, and may be included within the Housing Element of the City's General Plan. Unless otherwise permitted by law, the plan shall be reviewed and, if necessary, amended at least every five (5) years in conjunction with the housing element cycle. Unless otherwise permitted by law, the plan shall ensure that the requirements of this section are met every ten (10) years. Except as otherwise permitted by law, the Agency shall require, by contract or other appropriate means, that whenever any low and moderate income housing units are developed within the Project Area, such units shall be made available on a priority basis for rent or purchase, whichever the case may be, to persons and families of low or moderate income displaced by the Project; provided, however, that failure to give such priority shall not affect the validity of title to the real property upon which such housing units have been developed. 5. (535) Duration of Dwelling Unit Availability Unless otherwise permitted by law, the Agency shall require the aggregate number of dwelling units rehabilitated, developed or constructed pursuant to Sections 533 and 534 of this Plan to remain available at affordable housing cost to very low income, low income, and moderate income DiambarVedplan 17 03/11/97 households for the longest feasible time, as determined by the Agency, but for not less than the period of the residential land use controls established in Section X of this Plan. 6. (536) Relocation Housing If insufficient suitable housing units are available in the City for use by persons and families of low or moderate income displaced by a Project, the Agency may, to the extent of that deficiency, direct or cause the development, rehabilitation or construction of housing units within the City, both inside and outside the Project Area. 7. (537) Increased and Improved Supply Except as otherwise permitted by law, not less than twenty percent (20%) of all taxes which are allocated to the Agency pursuant to subdivision (b) of Section 33670 of the Redevelopment Law and Section 702(2) and (3) of this Plan shall be used by the Agency for the purposes of increasing, improving and preserving the City's supply of low and moderate income housing available at affordable housing cost as defined by Section 50052.5 of the California Health and Safety Code, to persons and families of low or moderate income, as defined in Section 50093 of the California Health and Safety Code, and very low income households, as defined in Section 50105 of the California Health and Safety Code, unless one or more applicable findings are made pursuant to the Redevelopment Law. The funds for this purpose shall be held in a separate Low and Moderate Income Housing Fund until used. Any interest earned by such Low and Moderate Income Housing Fund shall accrue to the Housing Fund. In implementing this Section 537 of the Plan, the Agency may exercise any or all of its powers including, but not limited to, the following: 1. Acquire real property or building sites. 2. Improve real property or building sites with on-site or off- site improvements. 3. Donate real property to private or public persons or entities. 4. Finance insurance premiums. 5. Construct buildings or structures. 6. Acquire buildings or structures. Diambar\redplan 18 03/11/97 7. Rehabilitate buildings or structures. 8. Provide subsidies to, or for the benefit of, very low income households, as defined by Section 50105 of the California Health and Safety Code, lower income households, as defined by Section 50079.5 of the California Health and Safety Code, or persons and families of low or moderate income, as defined by Section 50093 of the California Health and Safety Code, to the extent those households cannot obtain housing at affordable costs on the open market. Housing units available on the open market are those units developed without direct government subsidies. 9. Develop plans, pay principal and interest on bonds, loans, advances, or other indebtedness or pay financing or carrying charges. 10. Preserve the availability to lower income households of affordable housing units in housing developments which are assisted or subsidized by public entities and which are threatened with imminent conversion to market rates. The Agency may use these funds to meet, in whole or in part, the replacement housing provisions in Section 533 of this Plan. These funds may be used inside or outside the Project Area; however, these funds may be used outside the Project Area only if findings of benefit to the Project Area are made pursuant to the Redevelopment Law. 8. (538) Duration of Affordability Except as provided in Section 33334.3 of the Redevelopment Law, or as otherwise permitted by law, all new or substantially rehabilitated housing units developed or otherwise assisted with moneys from the Low and Moderate Income Housing Fund pursuant to an agreement approved by the Agency shall be required to remain available at affordable housing cost to persons and families of low or moderate income and very low income households for the longest feasible time, but for not less than the following periods of time: a. Fifteen years for rental units. However, the Agency may replace rental units with equally affordable and comparable rental units in another location within the City if (i) the replacement units are available for occupancy prior to the displacement of any persons and families of low or moderate income residing in the units to be DiambarVedplan 19 03/11/97 replaced and (ii) the comparable replacement units are not developed with moneys from the Low and Moderate Income Housing Fund. b. Ten years for owner -occupied units. However, the Agency may permit sales of owner -occupied units prior to the expiration of the 10 -year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program which protects the Agency's investment of moneys from the Low and Moderate Income Housing Fund. SECTION VI. (600) USES PERMITTED IN THE PROJECT AREA A. (60 1) Mal) and Uses Permitted The Map, attached hereto as Exhibit A and incorporated herein, illustrates the location of the Project Area boundaries, the immediately adjacent streets, and existing public rights-of-way. The land uses permitted by this Plan shall be those permitted by the General Plan and City zoning ordinances as they now exist or may hereafter be amended. B. (602) Major Land Uses (as now provided in the General Plan) Major land uses permitted within the Project Area shall include: Commercial, Industrial, Office, Parks/Schools/Public Facilities, Open Space, Vacant Land, and Residential. The areas shown on the plan maps may be used for any of the various kinds of uses specified for or permitted within such areas by the General Plan and zoning ordinances as they exist or are hereafter amended in the future. C. (603) Public Uses (604) Public Street Layout, Rights -of -Way and Easements The public street system for the Project Area is illustrated on the Project Area Map identified as Exhibit A. The street system in the Project Area shall be developed in accordance with the Circulation Element of the General Plan. Primary streets in the Project Area include: Brea Canyon Road Colima Road Diamond Bar Boulevard Golden Springs Drive Grand Avenue Lemon Avenue Pathfinder Road DiambarVedplan 20 03/11/97 Certain streets and rights-of-way may be constructed, widened, altered, abandoned, vacated, or closed by the City as necessary for proper development of the Project Area. Additional easements may be created by the Agency and City in the Project Area as needed for proper development and circulation. The public rights-of-way shall be used for vehicular, bicycle and/or pedestrian traffic as well as for public improvements, public and private utilities, and activities typically found in public rights-of-way. In addition, all necessary easements for public uses, public facilities, and public utilities may be retained or created. 2. (605) Other Public and Open Space Uses Both within and, where appropriate, outside of the Project Area, the Agency is authorized to permit, establish, or enlarge public, institutional, or non-profit uses, including, but not limited to, schools; community centers; auditorium and civic center facilities; criminal justice facilities; park and recreational facilities; parking facilities; transit facilities; libraries; hospitals; facilities for educational, fraternal, philanthropic and charitable institutions; or other similar associations or organizations allowed by Redevelopment Law. All such uses shall be deemed to conform to the provisions of this Plan provided that such uses conform with all other applicable laws and ordinances and that such uses are approved by the City. The Agency may impose such other reasonable restrictions as are necessary to protect development and uses in the Project Area. D. (606) Conforming Properties The Agency may, in its sole and absolute discretion, determine that certain real properties within the Project Area meet the requirements of this Plan, and the owners of such properties may be permitted to remain as owners of conforming properties without an Owner Participation Agreement with the Agency, provided such owners continue to operate, use, and maintain the real properties within the requirements of this Plan. An owner of a conforming property may be required by the Agency to enter into an Owner Participation Agreement with the Agency in the event that such owner desires to (1) construct any additional improvements or substantially alter or modify existing structures on any of the real property described above as conforming; or (2) acquire additional property within the Project Area. Diambarlredplan 21 03/11/97 E. (607) Nonconforming Uses The Agency is authorized but not required to permit an existing use to remain in an existing building in good condition if the use does not conform to the provisions of this Plan, provided that such use is generally compatible with existing and proposed developments and uses in the Project Area. The Agency may, but is not required to, authorize additions, alterations, repairs or other improvements in the Project Area for uses which do not conform to the provisions of this Plan where, in the determination of the Agency, such improvements would be compatible with surrounding Project Area uses and proposed development. F. (608) Interim Uses Pending the ultimate development of land by developers and participants, the Agency is authorized to use or permit the use of any land in the Project Area for interim uses not in conformity with the uses permitted in this Plan. Such interim use, however, shall conform to all applicable sections of the City codes other than permitted uses. G. (609) General Controls and Limitations All real property in the Project Area is hereby made subject to the controls and requirements of this Plan. No real property shall be developed, redeveloped, rehabilitated, or otherwise changed after the date of the adoption of this Plan except in conformance with the goals and provisions of this Plan and all applicable City codes and ordinances. The land use controls of this Plan shall apply for the periods set forth in Section X below. The type, size, height, number and use of buildings within the Project Area will be controlled by the applicable City planning and zoning ordinances as they now exist or may hereafter be amended. 1. (610) New Construction All construction in the Project Area shall comply with all applicable State and local laws in effect from time to time. In addition to applicable City codes, ordinances, or other requirements governing development in the Project Area, additional specific performance and development standards may be adopted by the Agency to control and direct improvement activities in the Project Area. Diambar\redplan 22 03,111/97 2. (611) Rehabilitation Any existing structure within the Project Area which the Agency shall approve for retention and rehabilitation shall be repaired, altered, reconstructed, or rehabilitated in such a manner that it will meet the following requirements: be safe and sound in all physical respects, be attractive in appearance and not detrimental to the surrounding uses. 3. (612) Number of Dwelling Units The total number of dwelling units in the Project Area shall be regulated by the General Plan. As of the date of adoption of the Adopting Ordinance, there are two dwelling units in the Project Area. 4. (613) Open Space and Landscaping The approximate amount of open space to be provided in the Project Area is the total of all areas so designated in the Land Use Element of the General Plan and those areas in the public rights-of-way or provided through site coverage limitations on new development as established by the City and this Plan. Landscaping shall be developed in the Project Area to ensure optimum use of living plant material in conformance with the standards of the City. 5. (614) Limitations on Type, Size and Height of Buildings The limits on building intensity, type, size and height, shall be established in accordance with the provisions of the General Plan and the zoning ordinances, as they now exist or are hereafter amended. 6. (615) Sians All signs shall conform to the City's requirements. Design of all proposed new signs shall be submitted prior to installation to the appropriate governing bodies of the City and/or the Agency for review and approval pursuant to the Municipal Code of the City and procedures permitted by this Plan. New signs must contribute to a reduction in sign blight. 7. (616) Utilities The Agency shall require that all utilities be placed underground whenever physically possible and economically feasible. Diambar\redplan 23 03/11/97 S. (617) Incompatible Uses No use or structure which is by reason of appearance, traffic, parking, smoke, glare, noise, odor, or similar factors incompatible with the surrounding areas, structures, or uses shall be permitted in any part of the Project Area, except as otherwise permitted by the City. 9. (618) Subdivision of Parcels No parcels in the Project Area, including any parcel retained by a participant, shall be consolidated, subdivided or re -subdivided without the approval of the City, and, if necessary for purposes of this Plan, the Agency. 10. (619) Minor Variations The Agency is authorized to permit minor variations from the limits, restrictions and controls established by this Plan. In order to permit any such variation, the Agency must determine all of the following: a. The application of certain provisions of this Plan would result in practical difficulties or unnecessary hardships inconsistent with the general purposes and intent of this Plan. b. There are exceptional circumstances or conditions applicable to the property or to the intended development of the property which do not apply generally to other properties having the same standards, restrictions, and controls. c. Permitting a variation will not be materially detrimental to the public welfare or injurious to property or improvements in the area. d. Permitting a variation will not be contrary to the objectives of this Plan. No such variation shall be granted which permits other than a minor departure from the provisions of this Plan. In permitting any such variation, the Agency shall impose such conditions as are necessary to protect the public health, safety, or welfare, and to assure compliance with the purposes of this Plan. Diambar\redplan 24 03/11/97 H. (620) Design for Development Within the limits, restrictions, and controls established in this Plan, and subject to the provisions of Sections 601 and 609 herein, the Agency is authorized to establish heights of buildings, land coverage, setback requirements, parking requirements, design criteria, traffic circulation, traffic access, and other development and design controls necessary for proper development of both private and public areas within the Project Area. No new improvement shall be constructed, and no existing improvement shall be substantially modified, altered, repaired, or rehabilitated except in accordance with this Plan and any such controls approved by the Agency. In the case of property which is the subject of a Disposition and Development Agreement or an Owner Participation Agreement with the Agency, such property shall be developed in accordance with the provisions of such Agreement. One of the objectives of this Plan is to create an attractive and pleasant environment in the Project Area. Therefore, such plans shall give consideration to good design, open space and other amenities to enhance the aesthetic quality of the Project Area. The Agency shall not approve any plans that do not comply with this Plan except as permitted by Section 619 of this Plan. I. (621) Building Permits Any building permit that is issued for the rehabilitation or construction of any new building or any addition, construction, moving, conversion or alteration to an existing building in the Project Area from the date of adoption of this Plan must be in conformance with the provisions of this Plan, any design for development adopted by the Agency, any restrictions or controls established by resolution of the Agency, and any applicable participation or other agreements. The Agency is authorized to establish permit procedures and approvals required for purposes of this Plan. A building permit shall be issued only after the applicant for same has been granted all approvals required by the City and the Agency at the time of application. DiambarVedplan 25 03/11/97 SECTION VII. (700) METHODS FOR FINANCING THE PROJECT A. (701) General Description of the Proposed Financing Methods Upon adoption of this Plan by the City Council, the Agency is authorized to finance implementation of this Plan with assistance from local sources, the State and/or the federal government, property tax increment, interest income, Agency bonds, donations, loans from private financial institutions or any other legally available source. The Agency is also authorized to obtain advances, borrow funds, issue bonds or other obligations, and create indebtedness in carrying out this Plan. The principal and interest on such indebtedness may be paid from tax increment revenue or any other funds available to the Agency. Advances and loans for survey and planning and for the operating capital for administration of this Plan may be provided by the City until adequate tax increment revenue or other funds are available to repay the advances and loans. The City or other public agency, as it is able, may also supply additional assistance through issuance of bonds, loans and grants and in- kind assistance. Any assistance shall be subject to terms established by an agreement between the Agency, City and/or other public agency providing such assistance. The Agency may issue bonds or other obligations and expend their proceeds to carry out this Plan. The Agency is authorized to issue bonds or other obligations as appropriate and feasible in an amount sufficient to finance all or any part of Plan implementation activities. The Agency shall pay the principal and interest on bonds or other obligations of the Agency as they become due and payable. B. (702) Tax Increment Revenue All taxes levied upon taxable property within the Project Area each year by or for the benefit of the State, County, City or other public corporation (hereinafter called "Taxing Agency" or "taxing agencies") after the effective date of the Adopting Ordinance, shall be divided as follows: 1. That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of said Taxing Agencies upon the total sum of the assessed value of the taxable property in the Project Area as shown upon the assessment roll used in connection with the taxation of such property by such Taxing Agency, last equalized prior to the effective date of the Adopting Ordinance, shall be allocated to and when collected shall be paid to the respective Taxing Agencies as taxes by or for said Taxing Agencies on all other property are paid (for the purpose of allocating taxes levied by or for any Taxing Agency or Agencies DiambarVedplan 26 03/11/97 which did not include the territory in the Project Area on the effective date of the Adopting Ordinance but to which such territory has been annexed or otherwise included after such effective date, the assessment roll of the County last equalized on the effective date of the Adopting Ordinance shall be used in determining the assessed valuation of the taxable property in the Project Area on said effective date). 2. That portion of said levied taxes each year in excess of such amount shall be allocated to, and when collected shall be paid into, a special fund of the Agency to pay the principal of and interest on loans, monies advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance in whole or in part, the redevelopment project. Unless and until the total assessed valuation of the taxable property in the Project Area exceeds the total assessed value of the taxable property in the Project Area as shown by the last equalized assessment roll referred to in paragraph (1.) hereof, all of the taxes levied and collected upon the taxable property in the Project Area shall be paid to the respective Taxing Agencies. When said loans, advances, and indebtedness, if any, and interest thereon, have been paid, all monies thereafter received from taxes upon the taxable property in the Project Area shall be paid to the respective Taxing Agencies as taxes on all other property are paid. 3. That portion of the taxes in excess of the amount identified in paragraph (1.) above which is attributable to a tax rate levied by a Taxing Agency for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of and interest on any bonded indebtedness for the acquisition or improvement of real property shall be allocated to, and when collected shall be paid into, the fund of that Taxing Agency. This paragraph (3.) shall only apply to taxes levied to repay bonded indebtedness approved by the voters on or after January 1, 1989. The Agency is authorized to make pledges as to specific advances, loans and indebtedness as appropriate in carrying out the Project. The portion of taxes allocated and paid to the Agency pursuant to subparagraph (2.) above is irrevocably pledged to pay the principal of and interest on loans, monies advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance, in whole or in part, the redevelopment program for the Project Area. Diambar\redplan 27 03/11/97 C. (703) Agency Bonds The Agency is authorized to issue bonds and other obligations from time to time, if it deems it appropriate to do so, in order to finance all or any part of Plan implementation activities. Neither the members of the Agency nor any persons executing the bonds are liable personally on the bonds or other obligations by reason of their issuance. The bonds and other obligations of the Agency are not a debt of the City or the State; nor are any of its political subdivisions liable for them; nor in any event shall the bonds or obligations be payable out of any funds or properties other than those of the Agency; and such bonds and other obligations shall so state on their face. The bonds and other obligations do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. The amount of bonded indebtedness, to be repaid in whole or in part from the allocation of taxes pursuant 'to Section 33670 of the Redevelopment Law, which can be outstanding at one time shall not exceed the limit as stated in Section 1004 of this Plan, except by amendment to this Plan. D. (704) Other Loans and Grants Any other loans, grants, guarantees or financial assistance from the federal government, the State, or any other public or private source will be utilized, if available, as appropriate in carrying out this Plan. In addition, the Agency may make loans as permitted by law to public or private entities for any of its redevelopment purposes. E. (705) Rehabilitation Loans, Grants, and Rebates The Agency and the City may commit funds from any source to rehabilitation programs for the purposes of loans, grants, or rebate payments for self -financed rehabilitation work. The rules and regulations for such programs shall be those which may already exist or which may be developed in the future. The Agency and the City shall seek to acquire grant funds and direct loan allocations from State and federal sources, as they may be available from time to time, for the carrying out of such programs. Diambar\redplan 28 03/11/97 SECTION VIII. (800) ACTIONS BY THE CITY The City shall aid and cooperate with the Agency in carrying out this Plan and shall take all reasonable actions necessary to ensure the continued fulfillment of the purposes of this Plan and to prevent the recurrence or spread in the Project Area of conditions of blight. Actions by the City may include, but shall not be limited to, the following: 1. Institution and completion of proceedings for opening, closing, vacating, widening, or changing the grades of streets, alleys, and other public rights-of-way, and for other necessary modifications of the streets, the street layout, and other public rights-of-way in the Project Area. Such action by the City shall include the requirement of abandonment and relocation by the public utility companies of their operations in public rights-of-way as appropriate to carry out this Plan, provided that nothing in this Plan shall be deemed to require the cost of such abandonment, removal, and relocation to be borne by others than those legally required to bear such costs. 2. Institution and completion of proceedings necessary for changes and improvements to publicly -owned parcels and utilities in the Project Area. 3. Performance of the above, and of all other functions and services relating to public health, safety, and physical development normally rendered in accordance with a schedule which will permit the redevelopment of the Project Area to be commenced and carried to completion without unnecessary delays. 4. Imposition, whenever necessary, of appropriate design controls within the limits of this Plan in the Project Area to ensure proper development and use of land. 5. Provisions for administration/enforcement of this Plan by the City after completion of development. 6. The undertaking and completion of any other proceedings necessary to carry out the Project. 7. The expenditure of any City funds in connection with redevelopment of the Project Area pursuant to this Plan. 8. Revision of the City zoning ordinance, adoption of specific plans or execution of statutory development agreements to permit the land uses and facilitate the development authorized by this Plan. Diambar\redplan 29 03/11/97 SECTION IX. (900) ADMINISTRATION AND ENFORCEMENT Upon adoption, the administration and enforcement of this Plan or other documents implementing this Plan shall be performed by the City and/or the Agency, as appropriate. The provisions of this Plan or other documents entered into pursuant to this Plan may also be enforced by litigation or similar proceedings by either the Agency or the City. Such remedies may include, but are not limited to, specific performance, damages, re- entry onto property, power of termination, or injunctions. In addition, any recorded provisions which are expressly for the benefit of owners of property in the Project Area may be enforced by such owners. SECTION X. (1000) PLAN LIMITATIONS A. (100 1) Effectiveness of the Plan Except for the non-discrimination and non -segregation provisions which shall run in perpetuity, and except as otherwise provided herein, the provisions of this Plan shall be effective, and the provisions of other documents formulated pursuant to this Plan shall be effective for thirty (30) years from the effective date of adoption of the Adopting Ordinance approving this Plan. After the time limit on the effectiveness of the Plan has expired, the Agency shall have no authority to act pursuant to the Plan except to pay previously incurred indebtedness and to enforce existing covenants or contracts. However, if the Agency has not completed its housing obligations pursuant to Section 33413 of the Redevelopment Law, the Agency shall retain its authority to implement requirements under 33413, including the ability to incur and pay indebtedness for this purpose, and shall use this authority to complete these housing obligations as soon as is reasonably possible. B. (1002) Limitation on Incurring Debt The time limit on the establishing of loans, advances, and indebtedness to be paid with the proceeds of property taxes received pursuant to Section 33670 of the Redevelopment Law to finance in whole or in part the redevelopment project is twenty (20) years from the date of adoption of the Adopting Ordinance approving this Plan. This limit, however, shall not prevent the Agency from incurring debt to be paid from the Low and Moderate Income Housing Fund or establishing more debt in order to fulfill the Agency's housing obligations under Section 33413 of the Redevelopment Law. The loans, advances, or indebtedness may be repaid over a period of time longer than this time limit as provided herein. No loans, advances or indebtedness to be repaid from the allocation of taxes shall be established or incurred by the Agency beyond this time limitation. This limit DiambarVedplan 30 03/11/97 shall not prevent the Agency from refinancing, refunding, or restructuring indebtedness after the time limit if the indebtedness is not increased and the time during which the indebtedness is to be repaid is not extended beyond the time limit to repay indebtedness required by this section. Provided, however, that the time limits established in this Section 1002 may be extended in the manner provided by law. C. (1003) Limitation on Receipt of Tax Increment and Payment of Indebtedness Except as otherwise provided herein, the limitation on the receipt of tax increment and the payment of indebtedness with the proceeds of property taxes received pursuant to Section 33670 of the Redevelopment Law is forty-five (45) years from the date of adoption of the Adopting Ordinance approving this Plan. D. (1004) Limitation on the Amount of Bonded Indebtedness This Plan authorizes the issuance of bonds to be repaid in whole or in part from the allocation of taxes pursuant to Redevelopment Law Section 33670. The amount of bonded indebtedness which can be outstanding at one time and payable in whole or in part from tax allocations attributable to the Project Area shall be limited to $60 million adjusted annually in accordance with the Los Angeles - Anaheim -Riverside Consumer Price Index (CPI) for all urban consumers (where 1982-84 equals 100), published by the Bureau of Labor Statistics of the U.S. Department of Labor. In the event the CPI ceases to be published, an acceptable replacement index shall be applied. If other sources of payment are lawfully combined with tax allocations, there shall be no limit as to the amount of bonded indebtedness serviceable from such other source of funds, except that proportion of the total bonded indebtedness which is attributable to being serviced from tax allocations shall not at one time exceed such figure of $60 million adjusted annually in accordance with the CPI. SECTION XI. (1100) PROCEDURE FOR AMENDMENT This Plan may be amended by means of the procedure established in Sections 33450- 33458 of the Redevelopment Law or by any other procedure hereafter established by law. This Plan is to be liberally construed and not interpreted as a limitation on the powers of the Agency. Notwithstanding any provision in this Plan to the contrary, the Agency may hereby utilize all powers of a redevelopment agency pursuant to the Redevelopment Law and all other applicable laws, as the same now exists or may hereafter be amended. DiambarVedplan 31 03/11/97 EXHIBIT A PROJECT AREA MAP EXHIBIT B LEGAL DESCRIPTION EXHIBIT B DIAMOND BAR REDEVELOPMENT AGENCY DIAMOND BAR ECONOMIC REVITALIZATION AREA LEGAL DESCRIPTION ALL THOSE CERTAIN TRACTS AND PARCELS OF LAND SITUATED LYING AND BEING IN THE CITY OF DIAMOND BAR, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SECTION 29, TOWNSHIP 2 SOUTH, RANGE 9 WEST, SAN BERNARDINO BASE AND MERIDIAN, THENCE NORTHERLY ALONG THE WEST LINE OF SAID SECTION 29 N00°5110711W, 574.63 FEET TO THE SOUTHERLY CORNER OF PARCEL 2 OF PARCEL MAP NO. 15513 AS SHOWN ON A MAP RECORDED IN BOOK 180, PAGES 26 THROUGH 30 OF PARCEL MAPS ON FILE IN THE OFFICE OF THE COUNTY RECORDER OF LOS ANGELES COUNTY; THENCE NORTHEASTERLY ALONG THE EASTERLY BOUNDARY OF SAID PARCEL THE FOLLOWING COURSES: N56°20123"E, 140.44 FEET; THENCE N79"25'23"E, 329.61 FEET; THENCE N38°19127"E, 133.61 FEET; THENCE N09°44'06"W, 328.23 FEET; THENCE N20°05143"E, 87.31 FEET; THENCE N64°10'42"E, 154.70 FEET TO THE BOUNDARY OF THAT CERTAIN PARCEL OF LAND DESCRIBED IN DIRECTORS DEED TO ARCIERO AND SONS, INC., RECORDED AS INSTRUMENT NO. 86-817906 OF OFFICIAL RECORDS OF SAID COUNTY; THENCE ALONG SAID LAST MENTIONED BOUNDARY S75'49118"E, 184.43 FEET; THENCE N27°15120"E, 981.64 FEET TO A TANGENT CURVE CONCAVE NORTHWEST AND HAVING A RADIUS OF 2,970.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 03°10'54" AN ARC LENGTH OF 164.93 FEET TO A POINT ON A COMPOUND CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 720.00 FEET, A RADIAL THROUGH SAID POINT BEARS S65°53134"E; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 23°28109" AN ARC LENGTH OF 294.93 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N00'36117"E, 342.10 FEET; THENCE N01°4510311E, 56.35 FEET TO A TANGENT CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 452.00 FEET; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 36°32'19" AN ARC LENGTH OF 288.25 FEET TO THE EASTERLY BOUNDARY OF SAID PARCEL 2; THENCE N47 ° 36' 33 "E, 27.22 FEET; THENCE NO3"18153"W, 117.42 FEET; THENCE N86'41107"E, 17.86 FEET; THENCE N68°01124"E, 70.79 FEET TO A POINT ON A NON - TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 13.00 FEET; THENCE NORTHERLY AND EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 97' 52' 30" AN ARC LENGTH OF 22.21 FEET TO A TANGENT LINE AND THE SOUTH RIGHT OF WAY LINE OF FALLOW FIELD DRIVE (64.00 FEET WIDE); THENCE ALONG SAID LINE N82°34100"E, 58.59 FEET TO A TANGENT CURVE CONCAVE NORTH AND HAVING A RADIUS OF 782.00 FEET; THENCE EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 08°57'39" AN ARC LENGTH OF 122.30 FEET TO A POINT ON THE EASTERLY LINE OF LOT 71 OF TRACT NO. 33104 AS PER MAP RECORDED IN BOOK 920, PAGES 1 THROUGH 6, RECORDS OF SAID COUNTY, A RADIAL THROUGH SAID POINT BEARS S16°23139"E; THENCE ALONG SAID EASTERLY LINE S22°59'40"E, 207.32 FEET TO THE SOUTHEASTERLY CORNER OF SAID LOT 71; THENCE ALONG THE EASTERLY LINE OF SAID TRACT NO. 33104 THE Doc:96010.LEG 11 FOLLOWING COURSES: N53°24150"E, 3.44 FEET; THENCE N53°26106"E, 111.48 FEET; THENCE N48'54153"E, 419.75 FEET; THENCE N39°17114"E, 550.11 FEET; THENCE N33°40'22"E, 150.00 FEET; THENCE N32008142"E, 300.11 FEET; THENCE N35'12'02"E, 300.11 FEET; THENCE N33°40122"E, 564.00 FEET; THENCE N45°25'46"W, 3.29 FEET TO A POINT ON THE EASTERLY LINE OF SAID FALLOW FIELD DRIVE AND TRACT NO. 25988 AS PER MAP RECORDED IN BOOK 714, PAGES 83 AND 84, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE N33°18'22"E, 371.70 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 2,890.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 06°27125" AN ARC LENGTH OF 325.69 FEET TO A POINT ON THE NORTHEASTERLY BOUNDARY OF SAID TRACT NO. 25988, A RADIAL THROUGH SAID POINT BEARS S63°09103"E; THENCE ALONG THE SOUTHEASTERLY PROLONGATION OF SAID BOUNDARY S56°40'14"E, 4.13 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 2,886.00 FEET, A RADIAL THROUGH SAID POINT BEARS S63°01'05"E, SAID CURVE ALSO BEING ON THE WESTERLY LINE OF LAND CONVEYED TO THE STATE OF CALIFORNIA PER DEED RECORDED JULY 23, 1964 AS INSTRUMENT NO. 1276 OF OFFICIAL RECORDS OF SAID COUNTY; THENCE NORTHERLY ALONG SAID WESTERLY LINE THE FOLLOWING COURSES: NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 03°22'03" AN ARC LENGTH OF 169.52 FEET; THENCE N13°31'22"W, 338.82 FEET; THENCE N16°26'51"E, 135.25 FEET; THENCE N49°33'07"E, 291.04 FEET; THENCE N21'32'37"W, 320.13 FEET; THENCE N15°40'27"W, 253.33 FEET; THENCE NO1"51'44"E, 44.16 FEET; THENCE N40°09'39"E, 121.75 FEET; THENCE N01'30'09"E, 184.36 FEET; THENCE N28°53122"E, 176.65 FEET; THENCE N15°05'59"W, 376.51 FEET; THENCE N35°5810511W, 143.37 FEET; THENCE N79'16'53"W, 136.25 FEET; THENCE N35°24'22"W, 65.16 FEET; THENCE N13'15'36"E, 145.79 FEET; THENCE N38°47'15"W, 124.54 FEET; THENCE N69'25116"W, 263.86 FEET; THENCE N87°05110"W, 240.11 FEET; THENCE N17°05'38"W, 87.77 FEET TO A POINT ON THE SOUTHERLY LINE OF PATHFINDER ROAD; THENCE ALONG SAID LINE S81°10129"W, 96.40 FEET TO A TANGENT CURVE CONCAVE NORTHERLY AND HAVING A RADIUS OF 175.48 FEET; THENCE WEST ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 14°02'11" AN ARC LENGTH OF 42.99 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N84°47'20"W, 41.23 FEET TO A TANGENT CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 159.48 FEET; THENCE WEST ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 14`02'11" AN ARC LENGTH OF Doc:96010.LEG 39.07 FEET TO A TANGENT LINE OF SAID SOUTH LINE OF PATHFINDER ROAD (80.00 FEET WIDE); THENCE ALONG SAID LINE S81°1012911W, 1,798.12 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 1,170.00 FEET; THENCE WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 04°02'50" AN ARC LENGTH OF 82.65 FEET TO A POINT ON A COMPOUND CURVE CONCAVE SOUTHEAST AND HAVING A RADIUS OF 13.00 FEET, A RADIAL THROUGH SAID POINT BEARS N12'52121"W; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 92 ° 13' 44" AN ARC LENGTH OF 20.93 FEET TO A POINT ON THE EAST LINE OF PEACEFUL HILLS ROAD (64.00 FEET WIDE); THENCE ALONG SAID LINE AND TANGENT TO SAID CURVE S15°06'05"E, 92.91 FEET TO A TANGENT CURVE CONCAVE EASTERLY AND HAVING A RADIUS OF 448.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 12'03'41" AN ARC LENGTH OF 94.31 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S27°09146"E, 108.87 FEET TO A TANGENT CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 632.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 26°2332" AN ARC LENGTH OF 291.12 FEET TO A POINT ON SAID CURVE, A RADIAL THROUGH SAID POINT BEARS N89°13146"E; THENCE ALONG SAID RADIAL S89'13146"W, 64.00 FEET TO THE SOUTHEAST CORNER OF LOT 117 OF TRACT NO. 43162 AS PER MAP RECORDED IN BOOK 1046, PAGES 5 THROUGH 14, RECORDS OF SAID COUNTY; THENCE ALONG THE SOUTH LINE OF SAID LOT 117 N88°00123"W, 848.85 FEET TO A POINT ON THE SOUTHERLY LINE OF PATHFINDER ROAD; THENCE N59°12156"W, 80.00 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 1,250.00 FEET, SAID CURVE ALSO BEING THE NORTHERLY LINE OF PATHFINDER ROAD; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 50°23'25" AN ARC LENGTH OF 1,099.35 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE AND NORTHERLY LINE OF PATHFINDER ROAD N81 -10129"E, 1,196.02 FEET TO A POINT ON THE SOUTHERLY PROLONGATION OF THE EAST LINE OF SHADED WOOD ROAD (64.00 FEET WIDE); THENCE ALONG SAID PROLONGATION AND EAST LINE OF SAID ROAD N08°49131"W, 378.33 FEET TO THE NORTHWEST CORNER OF LOT NO. 44 OF TRACT NO. 31053 AS PER MAP RECORDED IN BOOK 921, PAGES 21 THROUGH 27, RECORDS OF SAID COUNTY; THENCE ALONG THE NORTH LINE OF SAID LOT N81°10'29"E, 646.88 FEET; THENCE N51°46141"E, 269.45 FEET TO A POINT ON THE EASTERLY LINE OF LOT NO. 45 OF SAID TRACT NO. 31053; THENCE ALONG SAID EASTERLY LINE THE FOLLOWING FOUR (4) COURSES: N31°12'54"E, 121.59 FEET; THENCE N06°43'07"E, 188.29 FEET; THENCE N71°16'03"E, 177.41 FEET; THENCE NO2°34'44"E, 307.29 FEET TO THE NORTH LINE OF SAID LOT 45; THENCE ALONG SAID LINE S85°18'51"W, 1,046.50 FEET TO THE SOUTHWESTERLY CORNER OF LOT 53 OF TRACT NO. 35742 AS PER MAP RECORDED IN BOOK 927, PAGES 23 THROUGH 27, RECORDS OF SAID COUNTY; THENCE ALONG THE SOUTHWESTERLY BOUNDARY OF SAID LOT 53 THE FOLLOWING COURSES: N04°41'09"W, 92.70 FEET; THENCE N32°48'43"W, 243.12 FEET; THENCE S43°21'53"W, 176.78 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 332.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 19°58135" AN ARC LENGTH OF 115.75 FEET TO A POINT ON A NON -TANGENT LINE, A RADIAL THROUGH Doc:96010.LEG SAID POINT BEARS N23°23118"E; THENCE ALONG SAID RADIAL LINE N23°23118"E, 160.00 FEET; THENCE N69°36115"W, 169.70 FEET TO A POINT ON THE SOUTHEASTERLY BOUNDARY LINE OF LOT 49 OF TRACT NO. 32576 AS PER MAP RECORDED IN BOOK 921, PAGES 28 THROUGH 31, RECORDS OF SAID COUNTY; THENCE ALONG THE SOUTHEASTERLY AND SOUTHERLY BOUNDARY OF SAID LOT 49 THE FOLLOWING COURSES: S79"33'45"W, 256.33 FEET; THENCE S51"56121"W, 244.42 FEET; THENCE S28°12'06"W, 203.58 FEET; THENCE S16'59'27"W, 249.95 FEET; THENCE S89°18103"W, 1,141.47 FEET TO THE WEST LINE OF SECTION 20, TOWNSHIP 2 SOUTH, RANGE 9 WEST, SAN BERNARDINO MERIDIAN; THENCE ALONG SAID WEST LINE N00°41'57"W, 1,234.71 FEET; THENCE N00°2315111W, 81.43 FEET TO THE NORTH LINE OF SAID SECTION 20; THENCE ALONG SAID LINE N89°51'17"E, 840.00 FEET TO THE SOUTHEASTERLY CORNER OF TRACT NO. 30893 AS PER MAP RECORDED IN BOOK 954, PAGES 16 THROUGH 19, RECORDS OF SAID COUNTY; THENCE ALONG THE EASTERLY BOUNDARY OF SAID TRACT N22°51'58"E, 710.00 FEET; THENCE N17°16106"W, 279.60 FEET; THENCE N10°05'54"E, 247.47 FEET TO THE MOST SOUTHWESTERLY CORNER OF TRACT NO. 33636 AS PER MAP RECORDED IN BOOK 904, PAGES 86 THROUGH 90, RECORDS OF SAID COUNTY; THENCE ALONG THE SOUTH LINE OF SAID TRACT N84'51'49"E, 146.61 FEET; THENCE S75°08111"E, 175.00 FEET; THENCE N73°53'22"E, 784.95 FEET TO THE SOUTHWESTERLY CORNER OF TRACT NO. 32091 AS PER MAP RECORDED IN BOOK 897, PAGES 72 THROUGH 78, RECORDS OF SAID COUNTY; THENCE ALONG THE SOUTH LINE OF SAID TRACT N69°51'49"E, 400.06 FEET TO A POINT ON THE WESTERLY LINE OF TRACT NO. 33257 AS PER MAP RECORDED IN BOOK 918, PAGES 91 THROUGH 99, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE S31°34138"E, 155.87 FEET TO THE SOUTH LINE OF SAID TRACT; THENCE ALONG SAID LINE S79°30123"E, 1,242.75 FEET TO THE WEST LINE OF BREA CANYON ROAD, SAID LINE BEING DISTANT WEST 40.00 FEET FROM THE CENTERLINE OF SAID ROAD; THENCE ALONG SAID LINE N13°55'50"E, 95.72 FEET TO A TANGENT CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 1,460.00 FEET; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 27°33'00" AN ARC LENGTH OF 702.02 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N13°37'10"W, 761.51 FEET TO A TANGENT CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 1,460.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 03°04'24" AN ARC LENGTH OF 78.36 FEET TO THE SOUTHEAST CORNER OF LOT 135 OF SAID PREVIOUSLY MENTIONED TRACT NO. 33257, A RADIAL THROUGH SAID CORNER BEARS N73°18126"E; THENCE LEAVING SAID WESTERLY LINE OF BREA CANYON ROAD AND ALONG THE SOUTH LINE OF SAID LOT 135 S81°55'49"W, 561.90 FEET; THENCE S80°39'51"W, 135.28 FEET; THENCE S81°5514911W, 132.00 FEET TO THE WEST LINE OF SAID LOT; THENCE ALONG SAID LINE N07°30155"W, 541.16 FEET TO THE SOUTHERLY LINE OF COLIMA ROAD (100.00 FEET WIDE); THENCE ALONG SAID LINE S80°48103"W, 942.52 FEET TO A TANGENT CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 1,950.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 18°49'06" AN ARC LENGTH OF 640.46 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S61°58157"W, 1,128.29 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 1,950.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 08°04123" Doc:96010.LEG AN ARC LENGTH OF 274.76 FEET TO A POINT ON THE WEST LINE OF SECTION 17, TOWNSHIP 2 SOUTH, RANGE 9 WEST, SAN BERNARDINO MERIDIAN, A RADIAL THROUGH SAID POINT BEARS N36°05126"W; THENCE ALONG SAID LINE N00°08'44"W, 376.88 FEET TO THE MOST SOUTHERLY CORNER OF C.N. EARL'S SUBDIVISION AS PER MAP RECORDED IN BOOK 42, PAGE 31, RECORDS OF SAID COUNTY; THENCE ALONG THE SOUTHWESTERLY LINE OF SAID SUBDIVISION N38059'33"W, 420.79 FEET TO A POINT ON THE NORTHERLY BOUNDARY OF TRACT NO. 25391 AS PER MAP RECORDED IN BOOK 731, PAGES 93 THROUGH 96, RECORDS OF SAID COUNTY, SAID LINE ALSO BEING THE SOUTHERLY RIGHT OF WAY LINE OF STATE HIGHWAY ROUTE 60 (POMONA FREEWAY); THENCE ALONG SAID LINE S78°5312811W, 1,420.97 FEET TO THE INTERSECTION WITH THE FORMER WESTERLY LINE OF WALNUT DRIVE (40.00 FEET WIDE); THENCE ALONG SAID LINE N06"52132"E, 220.84 FEET TO AN ANGLE POINT THEREON; THENCE N32'32157"E, 437.84 FEET TO A POINT ON THE SOUTHWESTERLY LINE OF PARCEL MAP NO. 8695 AS RECORDED IN PARCEL MAP BOOK 89, PAGE 52, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE AND ITS NORTHWESTERLY PROLONGATION N39°00'13"W, 767.75 FEET TO THE NORTHWESTERLY RIGHT OF WAY LINE OF THE LOS ANGELES AND SALT LAKE RAILROAD RIGHT OF WAY (100.00 FEET WIDE); THENCE ALONG SAID RIGHT OF WAY LINE N61°09'53"E, 518.89 FEET TO THE NORTHWESTERLY PROLONGATION OF THE NORTHEASTERLY LINE OF SAID PARCEL MAP; THENCE ALONG SAID PROLONGATION AND NORTHEASTERLY LINE S39°00113"E, 634.06 FEET TO THE NORTH LINE OF SAID WALNUT DRIVE; THENCE ALONG SAID LINE N47'47'57"E, 187.97 FEET; THENCE N52'10110"E, 348.14 FEET TO THE NORTHEASTERLY LINE OF PARCEL MAP NO. 59 AS RECORDED IN PARCEL MAP BOOK 60, PAGE 54, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE N39'00'13"W, 334.42 FEET TO THE NORTHWESTERLY LINE OF LOT 11 OF C. N. EARL'S SUBDIVISION; THENCE ALONG SAID LINE N52°1011011E, 620.73 FEET TO THE SOUTHEASTERLY LINE OF THE LOS ANGELES AND SALT LAKE RAILROAD RIGHT OF WAY (100.00 FEET WIDE); THENCE ALONG SAID RIGHT OF WAY LINE N61°09153"E, 806.79 FEET; THENCE LEAVING SAID LINE S00°25'50"E, 328.90 FEET TO THE NORTH LINE OF LYCOMING STREET (60.00 FEET WIDE); THENCE ALONG SAID LINE N89°59155"E, 1,300.94 FEET TO THE EAST LINE OF THE SWAN SUBDIVISION AS PER MAP RECORDED IN BOOK 3, PAGES 39 AND 40, RECORDS OF SAID COUNTY; THENCE ALONG SAID EAST LINE N00°05105"W, 1,038.50 FEET TO THE SOUTHEASTERLY RIGHT OF WAY LINE OF THE LOS ANGELES AND SALT LAKE RAILROAD RIGHT OF WAY (100.00 FEET WIDE); THENCE ALONG SAID LINE N62°59155"E, 1,110.46 FEET TO THE CENTERLINE INTERSECTION OF BREA CANYON ROAD; THENCE CONTINUING ALONG SAID RIGHT OF WAY LINE N60°53'14"E, 700.37 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 2,914.93 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 01°02'13" AN ARC LENGTH OF 52.75 FEET TO A POINT ON THE EAST LINE OF PARCEL MAP NO. 16640 AS RECORDED IN PARCEL MAP BOOK 81, PAGES 74 AND 75, RECORDS OF SAID COUNTY, A RADIAL THROUGH SAID POINT BEARS S30 ° 08' 59"E; THENCE LEAVING SAID RIGHT OF WAY LINE AND ALONG SAID EAST LINE SOO°23'05"E, 681.15 FEET TO THE SOUTH LINE OF WASHINGTON STREET (80.00 FEET WIDE); THENCE ALONG SAID LINE S89°36'55"W, 60.24 FEET TO A TANGENT CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 1,460.00 FEET; THENCE WEST ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 03 ° 48' 43" AN ARC LENGTH OF 97.14 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S85"48112"W, 201.01 FEET TO Doc:96010.LEG 5 A TANGENT CURVE CONCAVE NORTHERLY AND HAVING A RADIUS OF 1,540.00 FEET; THENCE WEST ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 03°48'43' AN ARC LENGTH OF 102.46 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S89°36155"W, 123.00 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 27.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 89°5925" AN ARC LENGTH OF 42.41 FEET TO A TANGENT LINE BEING THE EAST LINE OF BREA CANYON ROAD (100.00 FEET WIDE); THENCE ALONG SAID LINE SOO°22130"E, 868.31 FEET TO A TANGENT CURVE CONCAVE EASTERLY AND HAVING A RADIUS OF 1,450.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 05°21'59" AN ARC LENGTH OF 135.81 FEET TO A POINT ON THE SOUTH LINE OF LOT 11 OF TRACT NO. 27390 AS PER MAP RECORDED IN BOOK 824, PAGES 19 THROUGH 21, RECORDS OF SAID COUNTY, A RADIAL THROUGH SAID POINT BEARS S84°15'31"W; THENCE ALONG SAID SOUTH LINE N89°37'05"E, 181.64 FEET TO THE WEST LINE OF LOT 12 OF SAID TRACT; THENCE ALONG THE WEST LINE OF LOTS 12 AND 20 OF SAID TRACT AND THE SOUTHERLY PROLONGATION THEREOF S00°2213011E, 269.00 FEET TO THE SOUTH LINE OF LYCOMING STREET (60.00 FEET WIDE); THENCE ALONG SAID LINE N89°37'05"E, 16.69 FEET TO THE WESTERLY BOUNDARY LINE OF TRACT NO. 33069 AS PER MAP RECORDED IN BOOK 924, PAGES 1 THROUGH 7, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE S33°53'51"E, 92.71 FEET TO A POINT ON THE SOUTHERLY LINE OF LOT 80 OF SAID TRACT, SAID POINT BEING ON A NONOTANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 267.50 FEET, A RADIAL THROUGH SAID POINT BEARS S35°15146"W; THENCE EASTERLY ALONG SAID CURVE AND SOUTHERLY LINE OF LOT 80 THROUGH A CENTRAL ANGLE OF 22°05'46" AN ARC LENGTH OF 103.16 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S76'50'00"E, 714.77 FEET TO A TANGENT CURVE CONCAVE NORTH AND HAVING A RADIUS OF 656.00 FEET; THENCE EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 09'44100" AN ARC LENGTH OF 111.44 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S86"3410011E, 558.13 FEET TO A POINT ON THE NORTH RIGHT OF WAY LINE OF STATE OF CALIFORNIA FREEWAY ROUTE 60 (POMONA FREEWAY); THENCE ALONG SAID RIGHT OF WAY LINE THE FOLLOWING COURSES: N77°14139"E, 63.36 FEET; THENCE N82°20109"E, 89.00 FEET; THENCE N84°46138"E, 258.23 FEET; THENCE N86°35150"E, 255.71 FEET; THENCE N80°0010211E, 374.83 FEET; THENCE N87'46'35"E, 126.57 FEET; THENCE N82°42101"E, 144.00 FEET; THENCE N84°48'07"E, 249.13 FEET; THENCE N45°58154"E, 181.25 FEET; THENCE N48°03'03"E, 128.19 FEET; THENCE N51°11142"E, 196.00 FEET; THENCE N60°52'03"E, 183.95 FEET; THENCE N65'23105"E, 95.73 FEET; THENCE N72'42'28"E, 217.25 FEET; THENCE N68°43111"E, 319.74 FEET; THENCE N64°32'26"E, 126.20 FEET; THENCE N60°02'39"E, 131.01 FEET; THENCE N52°12130"E, 46.15 FEET; THENCE Doc:96010.LEG 6 N66'53'27"E, 35.00 FEET; THENCE N47°27'03"E, 148.76 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 9,964.00 FEET, A RADIAL THROUGH SAID POINT BEARS S39°18108"E; THENCE NORTHEASTERLY ALONG SAID CURVE AND RIGHT OF WAY LINE THROUGH A CENTRAL ANGLE OF 10°40156" AN ARC LENGTH OF 1,856.67 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N40°00'56"E, 607.44 FEET; THENCE N10°48'16"W, 63.62 FEET TO A POINT ON THE WESTERLY BOUNDARY OF PARCEL MAP NO. 15625 AS PER MAP RECORDED IN PARCEL MAP BOOK 250, PAGES 5 THROUGH 7, RECORDS OF SAID COUNTY; THENCE ALONG THE BOUNDARY OF SAID PARCEL MAP S40°00156"W, 30.23 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 330.00 FEET, A RADIAL THROUGH SAID POINT BEARS S87°07116"E; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 14°34'43" AN ARC LENGTH OF 83.97 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N11"41'5911W, 457.01 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 270.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90°00'00" AN ARC LENGTH OF 424.12 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N78°18'01"E, 10.00 FEET TO A TANGENT CURVE CONCAVE SOUTHWEST AND HAVING A RADIUS OF 40.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90 ° 00' 00" AN ARC LENGTH OF 62.83 FEET TO A TANGENT LINE BEING THE WEST LINE OF GRAND AVENUE (100.00 FEET WIDE); THENCE ALONG SAID LINE S11°41159"E, 509.08 FEET TO A POINT ON THE ORIGINAL NORTHWESTERLY LINE OF BREA CANYON ROAD; THENCE LEAVING SAID BOUNDARY OF PARCEL MAP NO. 15625 AND ALONG SAID NORTHWESTERLY LINE N40°00'56"E, 1,580.56 FEET TO THE WEST LINE OF THE F.E. LEWIS CURRIER RANCH AS SHOWN ON RECORD OF SURVEY RECORDED IN BOOK 76, PAGES 51 THROUGH 56; THENCE ALONG SAID LINE N00°15'34"W, 30.17 FEET TO THE NORTHWESTERLY RIGHT OF WAY LINE OF STATE OF CALIFORNIA FREEWAY ROUTE 60 (POMONA FREEWAY); THENCE ALONG SAID RIGHT OF WAY THE FOLLOWING COURSES: N33°50'25"E, 1,810.09 FEET; THENCE N33°03'55"E, 506.36 FEET; THENCE N32"22'14"E, 77.94 FEET; THENCE N29°58'20"E, 244.69 FEET; THENCE N29'56'44"E, 123.65 FEET; THENCE N18°23'11"E, 60.52 FEET; THENCE N26"36'02"E, 180.00 FEET; THENCE N28°21'02"E, 127.60 FEET; THENCE N60°58'11"E, 45.98 FEET; THENCE N09°32'50"E, 80.01 FEET; THENCE N34'03118"E, 165.54 FEET; THENCE N28°47'38"E, 143.00 FEET; THENCE N25'27'58"E, 101.00 FEET; THENCE N65°35153"W, 8.17 FEET; THENCE N29°46'01"E, 180.07 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 2,428.00 FEET, A RADIAL THROUGH SAID POINT BEARS S67°23'1011E; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 12°24'11" AN ARC LENGTH TO A POINT ON A NON -TANGENT LINE, A RADIAL THROUGH SAID POINT BEARS S79°47121"E; THENCE CONTINUING ALONG SAID RIGHT OF WAY ALONG THE NON -TANGENT LINE THE FOLLOWING COURSES: Doc:96010.LEG 7 N1000410411E, 401.25 FEET; THENCE N06°45'42"E, 211.92 FEET; THENCE N16°45118"E, 59.23 FEET; THENCE N10'46'47"E, 627.96 FEET; THENCE N09°48'44"W, 31.90 FEET; THENCE N13'59'34"E, 35.89 FEET; THENCE N16°03148"E, 306.31 FEET TO A POINT ON A THE SOUTHERLY LINE OF SUNSET CROSSING ROAD (80.00 FEET WIDE) , SAID LINE ALSO BEING A NON - TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 1,106.97 FEET, A RADIAL THROUGH SAID POINT BEARS S29°20121"W; THENCE WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 01'27123" AN ARC LENGTH OF 31.36 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N59°0211611W, 261.77 FEET; THENCE AT RIGHT ANGLES TO SAID ROAD N30°57'44"E, 80.00 FEET; THENCE N42°40100"E, 50.19 FEET; THENCE N29°20119"E, 136.74 FEET; THENCE N24°24142"E, 66.09 FEET; THENCE N31°11'33"E, 40.84 FEET TO THE COMMON BOUNDARY OF THE CITY OF DIAMOND BAR AND CITY OF POMONA; THENCE ALONG SAID BOUNDARY S51 ° 20' 35"E, 583.25 FEET TO A POINT ON THE WESTERLY LINE OF DIAMOND BAR BOULEVARD, SAID LINE ALSO BEING A NON -TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 10,064 FEET, A RADIAL THROUGH SAID POINT BEARS N69°17159"W; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 00°39110" AN ARC LENGTH OF 115.05 FEET TO A POINT ON A RADIAL LINE; THENCE ALONG SAID LINE S68°38141"E, 10.00 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 10,054.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 01'54'33" AN ARC LENGTH OF 335.01 FEET TO A RADIAL LINE; THENCE ALONG SAID LINE S66°44108"E, 10.00 FEET TO A NON -TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 10,044.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 00°22119" AN ARC LENGTH OF 65.20 FEET TO A POINT ON A RADIAL LINE; THENCE ALONG SAID LINE N66°21'49"W, 10.00 FEET TO A NON -TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 10,054.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 05°38132" AN ARC LENGTH OF 990.07 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N29°16143"E, 970.56 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 3,754.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 09°08134" AN ARC LENGTH OF 599.03 FEET TO A RADIAL LINE; THENCE LEAVING SAID WESTERLY LINE OF DIAMOND BAR BOULEVARD AND ALONG SAID RADIAL LINE S51°34'43"E, 104.00 FEET TO A NON - TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 27.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 92°41'05" AN ARC LENGTH OF 43.68 FEET TO A TANGENT LINE AND THE NORTH LINE OF HIGHLAND VALLEY ROAD (64.00 FEET WIDE); THENCE ALONG SAID LINE S54'15'54"E, 71.18 FEET TO A TANGENT CURVE CONCAVE NORTHERLY AND HAVING A RADIUS OF 853.00 FEET; THENCE EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 18°17'11" AN ARC LENGTH OF 272.24 FEET TO A RADIAL LINE; THENCE LEAVING SAID NORTH LINE AND ALONG SAID RADIAL LINE S17°26'55"W, 64.00 FEET TO THE NORTHEASTERLY CORNER OF LOT 18 OF TRACT NO. 34803 AS PER MAP RECORDED IN BOOK 925, PAGES 14 THROUGH 16, RECORDS OF SAID COUNTY; THENCE ALONG THE EASTERLY LINE OF SAID LOT S29'16'281 -W, 563.73 FEET TO A POINT ON Doc:96010.LEG 8 THE NORTHERLY LINE OF LOT 17 OF SAID TRACT; THENCE ALONG SAID LINE S60°43'32"E, 292.29 FEET TO A POINT ON THE EASTERLY BOUNDARY LINE OF SAID TRACT NO. 34803; THENCE ALONG SAID BOUNDARY THE FOLLOWING COURSES: S67°41'38"W, 1.27 FEET; THENCE S72'47'02"W, 148.66 FEET; THENCE S56°10109"W, 226.32 FEET; THENCE S41°51'18"W, 257.77 FEET; THENCE S29°49'18"W, 370.00 FEET; THENCE S30°56'17"W, 381.24 FEET; THENCE S27°24'43"W, 311.31 FEET; THENCE S60'53119"E, 30.00 FEET; THENCE S29°0614111W, 39.32 FEET TO THE NORTHEASTERLY CORNER OF TRACT NO. 28853 AS PER MAP RECORDED IN BOOK 772, PAGES 12 AND 13, RECORDS OF SAID COUNTY; THENCE ALONG THE EASTERLY BOUNDARY OF SAID TRACT THE FOLLOWING COURSES: S29°0614111W, 46.68 FEET; THENCE 545'00'00"W, 30.00 FEET; THENCE S29°0010011W, 38.00 FEET; THENCE S06"00'00"E, 36.00 FEET; THENCE S34011'01"E, 93.40 FEET TO A POINT ON THE WESTERLY LINE OF SUNSET CROSSING ROAD, A RADIAL LINE THROUGH SAID POINT BEARS S47°53119"E; THENCE ALONG SAID RADIAL LINE S47 ° 53' 19"E, 64.00 FEET TO A POINT ON THE EASTERLY LINE OF SAID SUNSET CROSSING ROAD, SAID LINE ALSO BEING A CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 532.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 06°43156" AN ARC LENGTH OF 62.51 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S48 ° 50' 37"W, 494.03 FEET TO A TANGENT CURVE CONCAVE NORTH AND HAVING A RADIUS OF 382.00 FEET; THENCE WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 40"12122" AN ARC LENGTH OF 268.06 FEET TO A POINT ON THE WESTERLY LINE OF TRACT NO. 28305 AS PER MAP RECORDED IN BOOK 817, PAGES 8 THROUGH 12, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE S00°5710111E, 291.44 FEET TO THE BOUNDARY LINE OF TRACT NO. 27530 AS PER MAP RECORDED IN BOOK 714, PAGES 76 THROUGH 80, RECORDS OF SAID COUNTY; THENCE ALONG SAID BOUNDARY THE FOLLOWING COURSES: S41°12'39"W, 293.12 FEET; THENCE S17°25'23"W, 81.67 FEET; THENCE SO1°54'41"W, 160.95 FEET; THENCE S18°46'00"E, 80.74 FEET; THENCE S35°14'08"E, 160.46 FEET; THENCE S60°04'40"E, 160.38 FEET; THENCE N86°21'43"E, 173.35 FEET; THENCE N74°40'43"E, 227.07 FEET TO THE NORTH RIGHT OF WAY LINE OF STATE OF CALIFORNIA FREEWAY ROUTE 60 (POMONA FREEWAY); THENCE ALONG SAID RIGHT OF WAY THE FOLLOWING COURSES: N71'25151"E, 135.03 FEET; THENCE N76°40'58"E, 599.11 FEET; THENCE N70'06'53"E, 649.74 FEET; THENCE N82°55'00"E, 437.14 FEET; THENCE N74°12'38"E, 389.91 FEET; THENCE N67°59'47"E, 736.66 FEET; THENCE Doc:96010.LEG 9 N77°38122"E, 406.42 FEET; THENCE N8305114611E, 187.07 FEET; THENCE N88°06124"E, 121.07 FEET; THENCE N84°33135"E, 147.67 FEET; THENCE N82"15'00"E, 122.14 FEET TO A POINT ON THE WEST LINE OF GOLDEN SPRINGS DRIVE (80.00 FEET WIDE), BEING A CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 1,760.00 FEET, A RADIAL THROUGH SAID POINT BEARS S85°45129"E; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 13"15'11" AN ARC LENGTH OF 407.10 FEET TO A RADIAL LINE; THENCE ALONG SAID RADIAL LINE N80°59'20"E, 80.00 FEET TO A NON- TANGENT CURVE CONCAVE NORTHEAST AND HAVING A RADIUS OF 13.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 88°36'30" AN ARC LENGTH OF 20.11 FEET TO A TANGENT LINE BEING THE NORTH LINE OF SYLVAN GLEN ROAD (64.00 FEET WIDE) ; THENCE ALONG SAID LINE N82°22150"E, 510.07 FEET TO A TANGENT CURVE CONCAVE NORTHERLY AND HAVING A RADIUS OF 468.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 37°09150" AN ARC LENGTH OF 303.56 FEET TO A RADIAL LINE; THENCE ALONG SAID LINE S44°47'00"E, 64.00 FEET TO A NORTHERLY CORNER OF LOT 8 OF TRACT NO. 43756 AS PER MAP RECORDED IN BOOK 1076, PAGES 61 THROUGH 63, RECORDS OF SAID COUNTY; THENCE ALONG THE BOUNDARY OF SAID LOT 8 THE FOLLOWING COURSES: S25°35'00"E, 72.00 FEET; THENCE S45°15'00"E, 473.25 FEET; THENCE N53°05100"E, 176.21 FEET; THENCE SO4°29'11"E, 224.56 FEET; THENCE S22°39'25"E, 326.00 FEET TO A POINT ON THE NORTH RIGHT OF WAY LINE OF STATE OF CALIFORNIA FREEWAY ROUTE 60 (POMONA FREEWAY); THENCE S22'04'53"W, 370.09 FEET TO A POINT ON THE SOUTH RIGHT OF WAY LINE OF SAID ROUTE 60; THENCE ALONG SAID RIGHT OF WAY LINE THE FOLLOWING COURSES: N67°55107"W, 113.20 FEET; THENCE 559'16116"W, 76.28 FEET; THENCE N36°59'18"W, 68.37 FEET; THENCE N71'35129"W, 386.12 FEET; THENCE S89°2915711W, 336.15 FEET TO A POINT ON THE EASTERLY LINE OF THAT CERTAIN EASEMENT FOR STORM DRAIN PURPOSES LYING OVER LOT 51 OF TRACT NO. 42584 AS PER MAP RECORDED IN BOOK 1024, PAGES 6 THROUGH 14, RECORDS OF SAID COUNTY; THENCE ALONG SAID EAST LINE S23°51102"E, 186.97 FEET; THENCE S65°2911611E, 38.00 FEET; THENCE S24'30'44"W, 27.00 FEET; THENCE S20°29116"E, 129.00 FEET TO A POINT ON THE NORTHERLY LINE OF ARMITOS PLACE (60.00 FEET WIDE), ALSO BEING A CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 528.00 FEET, A RADIAL THROUGH SAID POINT BEARS N07'47101"W; THENCE EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 35°01'38" AN ARC LENGTH OF 322.74 FEET TO THE SOUTHWEST CORNER OF LOT 66 OF SAID TRACT NO. 42584, A RADIAL THROUGH SAID CORNER BEARS N27°14137"E; THENCE ALONG THE BOUNDARY OF SAID LOT N56°51'28"E, 118.77 FEET; THENCE S83°07'57"E, 152.13 FEET; THENCE S12°19120"W, 209.79 FEET TO A POINT ON THE SOUTH LINE OF SAID ARMITOS PLACE; THENCE ALONG SAID LINE N77°40'40"W, 29.91 FEET TO A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 382.00 FEET; THENCE WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 19' 04' 10" AN ARC LENGTH Doc:96010.LEG 10 OF 127.14 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N58°36130"W, 66.80 FEET TO A TANGENT CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 468.00 FEET; THENCE WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 31'01'36" AN ARC LENGTH OF 416.79 FEET TO A POINT ON A COMPOUND CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 318.00 FEET, A RADIAL THROUGH SAID POINT BEARS N19'38106"W; THENCE WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 11°15'44" AN ARC LENGTH OF 62.51 FEET TO A RADIAL LINE; THENCE ALONG SAID LINE N30°53'49"W, 60.00 FEET TO THE SOUTHEASTERLY CORNER OF LOT 53 OF TRACT NO. 29889 AS PER MAP RECORDED IN BOOK 738, PAGES 45 THROUGH 49, RECORDS OF SAID COUNTY; THENCE ALONG THE NORTHEASTERLY LINE OF SAID LOT N43°19157"W, 137.00 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,480.00 FEET, A RADIAL THROUGH SAID POINT BEARS S60°57100"E; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 04°15115" AN ARC LENGTH OF 109.89 FEET TO A POINT ON THE NORTHEASTERLY LINE OF CARPIO DRIVE (56.00 FEET WIDE), A RADIAL THROUGH SAID POINT BEARS S56°41'45"E; THENCE S42°0712511W, 56.00 FEET TO A POINT ON THE SOUTHWESTERLY LINE OF SAID CARPIO DRIVE, SAID LINE ALSO BEING A CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 322.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 07 ° 52' 25" AN ARC LENGTH OF 44.25 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N55°45100"W, 164.11 FEET TO A TANGENT CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 25.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 87°35'56" AN ARC LENGTH OF 38.22 FEET TO A POINT ON A REVERSE CURVE CONCAVE NORTHWEST AND HAVING A RADIUS OF 1,240.00 FEET, SAID CURVE ALSO BEING THE SOUTHERLY RIGHT OF WAY LINE OF GOLDEN SPRINGS DRIVE (80.00 FEET WIDE); THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 22°10'32" AN ARC LENGTH OF 479.93 FEET TO A TANGENT LINE; THENCE CONTINUING ALONG SAID RIGHT OF WAY LINE THE FOLLOWING EIGHT (8) COURSES: S58'49136"W, 1,874.68 FEET TO A TANGENT CURVE CONCAVE NORTHWEST AND HAVING A RADIUS OF 1,790.00 FEET; THENCE SOUTHWEST ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 10°00124" AN ARC LENGTH OF 312.62 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S68°58100"W, 401.24 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 535.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 43"43'00" AN ARC LENGTH OF 408.20 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S25°07'00"W, 400.61 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,040.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 31°33'00" AN ARC LENGTH OF 572.68 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S56°40'00"W, 31.26 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 25.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90' 00' 00" AN ARC LENGTH OF 39.27 FEET TO A TANGENT LINE BEING THE EASTERLY LINE OF DIAMOND BAR BOULEVARD (120.00 FEET WIDE); THENCE ALONG SAID LINE 533`20'00"E, 166.63 FEET TO A TANGENT CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 2,560.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 47°30100" AN ARC LENGTH OF 2,122.22 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE Doc:96010.LEG 11 S14010'0011W, 500.00 FEET; THENCE AT RIGHT ANGLES TO SAID LAST MENTIONED COURSE N75°5010011W, 10.00 FEET TO A POINT ON SAID EASTERLY LINE OF DIAMOND BAR BOULEVARD (100.00 FEET WIDE); THENCE ALONG SAID LINE S14°10'00"W, 289.10 FEET TO A TANGENT CURVE CONCAVE EASTERLY AND HAVING A RADIUS OF 3,950.00 FEET; THENCE SOUTH ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 00°26'13" AN ARC LENGTH OF 30.13 FEET TO THE NORTHWEST CORNER OF LOT 6 OF TRACT NO. 31479 AS PER MAP RECORDED IN BOOK 998, PAGES 7 THROUGH 17, RECORDS OF SAID COUNTY, A RADIAL THROUGH SAID CORNER BEARS N76°16113"W; THENCE ALONG THE PERIMETER OF SAID LOT 6 THE FOLLOWING COURSES: N76°56114"E, 489.34 FEET; THENCE N72°3015611E, 419.38 FEET; THENCE N85°19'28"E, 269.90 FEET; THENCE S43'32'59"E, 335.28 FEET; THENCE N44°52111"E, 558.76 FEET; THENCE N17'57'18"W, 203.41 FEET; THENCE N46'2211411E, 73.91 FEET; THENCE N86'33159"E, 100.18 FEET; THENCE N73'24129"E, 233.38 FEET; THENCE N55'17'12"E, 250.86 FEET; THENCE S29'4113111E, 81.44 FEET; THENCE S60'18'29"W, 48.03 FEET; THENCE S2904113111E, 81.12 FEET; THENCE S45'05'04"W, 351.24 FEET; THENCE S12'33142"E, 476.39 FEET; THENCE S60'32119"W, 75.23 FEET; THENCE N80°5513111W, 291.65 FEET; THENCE S22'22'01"W, 235.20 FEET; THENCE S27°37128"W, 155.80 FEET; THENCE 511'42'37"W, 163.87 FEET; THENCE 531'54'18"W, 302.74 FEET; THENCE SOUTH 143.00 FEET; THENCE WEST 300.00 FEET; THENCE SOUTH 200.00 FEET; THENCE WEST 270.00 FEET; THENCE NORTH 220.00 FEET; THENCE N76'27159"W, 442.28 FEET; THENCE S7001515211W, 424.96 FEET; THENCE WEST 200.11 FEET TO THE EASTERLY LINE OF SAID DIAMOND BAR BOULEVARD (100.00 FEET WIDE); THENCE ALONG SAID LINE S02'431001-W, 170.81 FEET TO A TANGENT CURVE CONCAVE WEST AND HAVING A RADIUS OF 3,050.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 22'22'40" AN ARC LENGTH OF 1,191.23 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S25°05140"W, 398.85 FEET TO A TANGENT CURVE CONCAVE NORTHEAST AND HAVING A RADIUS OF 13.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 85'00100" AN ARC LENGTH OF 19.29 FEET TO A TANGENT LINE BEING THE NORTHERLY LINE' OF CLEAR CREEK CANYON DRIVE (64.00 FEET WIDE); THENCE ALONG SAID LINE S59'54'20"E, 21.75 FEET TO A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 382.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 41'54'20" AN ARC LENGTH OF 279.39 FEET TO A POINT ON A REVERSE CURVE CONCAVE Doc:96010.LEG 12 NORTHEASTERLY AND HAVING A RADIUS OF 318.00 FEET, A RADIAL THROUGH SAID POINT BEARS N72°00100"E; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 48°03'55" AN ARC LENGTH OF 266.77 FEET TO A RADIAL LINE; THENCE ALONG SAID RADIAL LINE 523'56105"W, 64.00 FEET TO THE WESTERLY BOUNDARY LINE OF TRACT NO. 35026 AS PER MAP RECORDED IN BOOK 919, PAGES 31 THROUGH 37, RECORDS OF SAID COUNTY; THENCE ALONG SAID BOUNDARY LINE S01°2315511W, 65.74 FEET; THENCE S13°14'47"W, 62.82 FEET; THENCE S25"05140"W, 577.06 FEET TO THE NORTHERLY LINE OF GRAND AVENUE (100.00 FEET WIDE); THENCE ALONG SAID LINE AND THE SOUTHERLY LINE OF SAID TRACT NO. 35026 S64°54120"E, 641.47 FEET TO A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 1,250.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 13°59157" AN ARC LENGTH OF 305.42 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S50'54123"E, 897.74 FEET TO A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 1,150.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 26'03'04" AN ARC LENGTH OF 522.88 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S76'57127"E, 741.37 FEET TO THE WEST LINE OF LOT 3 IN TRACT NO. 31479 AS PER MAP RECORDED IN BOOK 998, PAGES 7 THROUGH 17, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE N24'04'29"E, 320.00 FEET; THENCE N06'03121"W, 728.03 FEET TO THE NORTHERLY LINE OF SAID LOT; THENCE ALONG SAID LINE N76'55'06"E, 1,135.47 FEET TO THE WESTERLY CORNER OF LOT 51 OF TRACT NO. 42560 AS PER MAP RECORDED IN BOOK 1040, PAGES 70 THROUGH 75, RECORDS OF SAID COUNTY; THENCE ALONG THE PERIMETER OF SAID LOT 51 N45'48'25"E, 150.63 FEET; THENCE S87'47151"E, 130.10 FEET; THENCE S48°18'19"E, 131.04 FEET; THENCE S50'36146"E, 50.00 FEET TO THE EASTERLY LINE OF SUMMIT RIDGE DRIVE BEING A VARIABLE WIDTH FROM 60.00 FEET TO 70.00 FEET, SAID EASTERLY LINE BEING A CURVE CONCAVE EAST AND HAVING A RADIUS OF 668.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 23'01'34" AN ARC LENGTH OF 268.46 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S16'21140"W, 105.08 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 532.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 42"37'20" AN ARC LENGTH OF 395.75 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S58'5910011W, 176.43 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 468.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 49'48'01" AN ARC LENGTH OF 406.73 FEET TO A POINT ON A COMPOUND CURVE CONCAVE EASTERLY AND HAVING A RADIUS OF 282.19 FEET, A RADIAL THROUGH SAID POINT BEARS S80'49101"W; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 17'27'10" AN ARC LENGTH OF 85.96 FEET TO A POINT ON A REVERSE CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 539.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 07'4334" AN ARC LENGTH OF 72.69 FEET TO A RADIAL LINE; THENCE ALONG SAID RADIAL LINE S89°27123"W, 4.00 FEET TO A POINT ON A CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 535.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 13'35'10" AN ARC LENGTH OF 126.86 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S13"02'33"W, 66.52 FEET TO A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 13.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90'00'00" Doc:96010.LEG 13 AN ARC LENGTH OF 20.42 FEET TO A POINT ON THE NORTH LINE OF GRAND AVENUE (100.00 FEET WIDE); THENCE AT RIGHT ANGLES TO SAID LINE S13°02133"W, 100.00 FEET TO THE SOUTH LINE OF SAID GRAND AVENUE; THENCE ALONG SAID LINE N76°57'27"W, 1,522.67 FEET TO A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 1,250.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 26°03'04" AN ARC LENGTH OF 568.35 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N50°54'23"W, 897.74 FEET TO A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 1,150.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 13°59157" AN ARC LENGTH OF 280.98 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N64°54'20"W, 641.47 FEET TO THE SOUTHEASTERLY LINE OF PARCEL MAP NO. 14429 AS PER MAP RECORDED IN BOOK 98, PAGE 76 OF PARCEL MAPS, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE S25°0514011W, 330.00 FEET TO THE SOUTHWESTERLY LINE OF SAID PARCEL MAP; THENCE ALONG SAID LINE N64°54'20"W, 660.50 FEET TO THE EASTERLY LINE OF DIAMOND BAR BOULEVARD (120.00 FEET WIDE); THENCE ALONG SAID LINE S25°15'45"W, 1,557.98 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 6,060.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 25°03'15" AN ARC LENGTH OF 2,649.90 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S50°09'00"E, 2,850.97 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 5,940.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 15°28'22" AN ARC LENGTH OF 1,604.10 FEET TO A POINT ON A TANGENT; THENCE ALONG SAID LINE AND CONTINUING ALONG SAID EASTERLY LINE OF DIAMOND BAR BOULEVARD S34°40138"W, 1,351.31 FEET; THENCE AT RIGHT ANGLES TO SAID LINE N55°19122"W, 10.00 FEET TO A POINT ON SAID EASTERLY LINE OF DIAMOND BAR BOULEVARD (100.00 FEET WIDE) AND BEING A CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 6,050.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 06°06'40" AN ARC LENGTH OF 645.29 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S40"47'18"W, 1,347.81 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 5,950.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 07°28'56" AN ARC LENGTH OF 777.01 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S33°18'22"W, 1,000.08 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 2,051.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 28°34'19" AN ARC LENGTH OF 1,022.78 FEET TO A POINT ON THE WESTERLY BOUNDARY LINE OF TRACT NO. 32974 AS PER MAP RECORDED IN BOOK 873, PAGES 50 THROUGH 56, RECORDS OF SAID COUNTY, A RADIAL THROUGH SAID POINT BEARS S28°07'19"E; THENCE ALONG SAID WESTERLY LINE S28°06135"E, 568.67 FEET TO AN ANGLE POINT IN SAID BOUNDARY; THENCE CONTINUING ALONG SAID BOUNDARY AND THE NORTHWESTERLY BOUNDARY LINE OF TRACT NO. 34160 AS PER MAP RECORDED IN BOOK 900, PAGES 20 THROUGH 25, RECORDS OF SAID COUNTY S48°00'28"W, 979.86 FEET TO AN ANGLE POINT; THENCE S56'00'28"W, 389.80 FEET TO AN ANGLE POINT; THENCE N33°59'32"W, 40.00 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 40.00 FEET, SAID CURVE BEING THE CUL-DE-SAC CURVE FOR PASADO DRIVE AS SAID STREET IS SHOWN ON TRACT NO. 25989 AS PER MAP RECORDED IN BOOK 714, PAGES 5 THROUGH 7, Doc:96010.LEG 14 RECORDS OF SAID COUNTY; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 180°00'28" AN ARC LENGTH OF 125.67 FEET TO A POINT ON THE NORTHERLY LINE OF SAID TRACT, A RADIAL THROUGH SAID POINT BEARS N34°00100"W; THENCE ALONG SAID NORTHERLY LINE N71°00'13"W, 580.00 FEET TO AN ANGLE POINT THEREON; THENCE N59°18'42"W, 235.80 FEET TO THE EASTERLY LINE OF THE BREA CANYON CHANNEL (50.00 FEET WIDE) AS SHOWN ON TRACT NO. 27577 AS PER MAP RECORDED IN BOOK 702, PAGES 22 THROUGH 25, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE 530'41'18"W, 96.06 FEET; THENCE AT RIGHT ANGLES TO SAID LINE N59°18'42"W, 50.00 FEET TO THE NORTHERLY LINE OF LOT 39 OF SAID TRACT NO. 27577; THENCE ALONG SAID LINE N45 ° 57' 52 "W, 91.07 FEET TO A POINT ON A CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 35.00 FEET, SAID CURVE BEING THE CUL-DE-SAC CURVE FOR CASTLE ROCK ROAD; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 182'47'21" AN ARC LENGTH OF 111.16 FEET TO THE NORTHERLY LINE OF LOT 40 OF SAID TRACT NO. 27577; THENCE ALONG SAID LINE N32°09'07"W, 12.63 FEET TO A POINT ON THE EASTERLY LINE OF BREA CANYON ROAD (80.00 FEET WIDE); THENCE ALONG SAID LINE S57°30'53"W, 267.48 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 961.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 29'17'38" AN ARC LENGTH OF 491.34 FEET TO A TANGENT LINE AND WHERE THE ROAD IS NOW 103.00 FEET WIDE; THENCE ALONG SAID TANGENT LINE S28"33'03"W, 940.84 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 5,064.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 09'11'12" AN ARC LENGTH OF 812.01 FEET TO A POINT ON A COMPOUND CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 2,053.00 FEET, A RADIAL THROUGH SAID POINT BEARS S52'15145"E; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 00°49'57" AN ARC LENGTH OF 29.83 FEET TO A POINT ON A REVERSE CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 15.00 FEET, A RADIAL THROUGH SAID POINT BEARS N51°25'48"W; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 17°45153" AN ARC LENGTH OF 4.65 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S20' 48' 19"W, 123.60 FEET TO A POINT ON A CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 2,095.00 FEET, A RADIAL THROUGH SAID POINT BEARS S48°04149"E; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 02°32'55" AN ARC LENGTH OF 93.19 FEET TO A POINT ON THE SOUTH LINE OF SAID PREVIOUSLY MENTIONED SECTION 29, A RADIAL THROUGH SAID POINT BEARS S45"31154"E; THENCE ALONG SAID SECTION LINE S88°19'17"W, 403.27 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THE FOLLOWING NINE (9) EXCEPTIONS: EXCEPTION NO. 1: BEGINNING AT THE CENTERLINE INTERSECTION OF DIAMOND BAR BOULEVARD AND PATHFINDER ROAD; THENCE ALONG THE CENTERLINE OF SAID DIAMOND BAR BOULEVARD S34°40'38"W, 91.14 FEET; THENCE AT RIGHT ANGLES TO SAID CENTERLINE N55°19'22"W, 60.00 FEET TO A POINT ON THE WESTERLY LINE OF DIAMOND BAR BOULEVARD (120.00 FEET WIDE), SAID POINT ALSO BEING THE TRUE POINT OF BEGINNING; THENCE ALONG SAID LINE Doc:96010.LEG 15 S34°40'38"W, 886.35 FEET; THENCE S55°19122"E, 10.00 FEET TO A POINT ON A CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 5,950.00 FEET, SAID CURVE ALSO BEING THE WESTERLY LINE OF SAID DIAMOND BAR BOULEVARD (100.00 FEET WIDE); THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 06°06'40" AN ARC LENGTH OF 634.62 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S40°4711811W, 992.81 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 25.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90°00'00" AN ARC LENGTH OF 39.27 FEET TO A TANGENT LINE AND THE SOUTHWESTERLY LINE OF FOUNTAIN SPRINGS ROAD (60.00 FEET WIDE); THENCE ALONG SAID LINE N49-12'42"W, 550.00 FEET TO A POINT ON THE SOUTHEASTERLY LINE OF THE BREA CANYON CHANNEL (50.00 FEET WIDE); THENCE ALONG SAID LINE 540`47'18"W, 376.60 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 6,625.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 07'23'56" AN ARC LENGTH OF 865.16 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S33°13'22"W, 244.0 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 180.00 FEET, SAID CURVE ALSO BEING THE SOUTHWESTERLY LINE OF COLD SPRINGS LANE (60.00 FEET WIDE); THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 40°00'00" AN ARC LENGTH OF 125.66 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S16°41'38"E, 438.79 FEET TO A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 240.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 40°00'00" AN ARC LENGTH OF 167.55 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE 556'41'38"E, 2.00 FEET TO A TANGENT CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 25.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90 ° 00' 00" AN ARC LENGTH OF 39.27 FEET TO A TANGENT LINE AND THE WESTERLY LINE OF DIAMOND BAR BOULEVARD (100.00 FEET WIDE); THENCE ALONG SAID LINE S33°18'22"W, 398.28 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,950.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 32'45'31" AN ARC LENGTH OF 1,114.90 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S66°03'53"W, 875.89 FEET TO A TANGENT CURVE CONCAVE NORTH AND HAVING A RADIUS OF 950.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 20°25135" AN ARC LENGTH OF 338.68 FEET TO A POINT ON THE NORTHWESTERLY LINE OF THE BREA CANYON CHANNEL (50.00 FEET WIDE), A RADIAL THROUGH SAID POINT BEARS S03°30132"E; THENCE ALONG SAID LINE N30°41118"E, 129.38 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 975.00 FEET; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 06°32'36" AN ARC LENGTH OF 111.35 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N24°08'42"E, 148.26 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 825.00 FEET; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 02 ° 25' 50" AN ARC LENGTH OF 35.00 FEET TO A POINT ON THE SOUTHERLY BOUNDARY LINE OF TRACT NO. 25991 AS PER MAP RECORDED IN BOOK 702, PAGES 16 THROUGH 21, RECORDS OF LOS ANGELES COUNTY; THENCE ALONG SAID LINE AND RADIAL TO SAID LAST MENTIONED CURVE N63°25'28"W, 166.74 FEET TO THE EASTERLY LINE OF BREA CANYON ROAD (80.00 FEET WIDE) AS SHOWN ON SAID TRACT; THENCE ALONG SAID LINE N04°05'40"E, 154.44 FEET TO A TANGENT CURVE Doc:96010.LEG 16 CONCAVE EAST AND HAVING A RADIUS OF 960.00 FEET; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 29°12'42" AN ARC LENGTH OF 489.45 FEET TO A TANGENT LINE BEING THE SAME EASTERLY LINE OF BREA CANYON ROAD WHICH WIDENS TO 103.00 FEET AT THIS POINT; THENCE ALONG SAID LINE N33°18122"E, 1,153.99 FEET TO THE NORTHERLY BOUNDARY LINE OF SAID TRACT NO. 25991; THENCE ALONG SAID LINE S56°41'38"E, 277.00 FEET TO A POINT ON THE WESTERLY BOUNDARY LINE OF TRACT NO. 25985 AS PER MAP RECORDED IN BOOK 678, PAGES 63 THROUGH 65, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE N33°18122"E, 524.00 FEET TO THE SOUTHWESTERLY LINE OF LOTS 1 THROUGH 4 IN SAID TRACT NO. 25985; THENCE ALONG SAID LINE N56°41'38"W, 277.00 FEET TO THE EASTERLY LINE OF SAID BREA CANYON ROAD (103.00 FEET WIDE); THENCE ALONG SAID LINE N33°18'22"E, 576.88 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 2,053.00 FEET; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 29°16;05: AN ARC LENGTH OF 1,048.72 FEET TO A POINT ON A REVERSE CURVE CONCAVE EASTERLY AND HAVING A RADIUS OF 25.00 FEET, A RADIAL THROUGH SAID POINT BEARS N85°57'43"W; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 32°26117" AN ARC LENGTH OF 14.15 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N36°23'34"E, 90.30 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 15.00 FEET, A RADIAL THROUGH SAID POINT BEARS S47°15140"W; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 44°03'11" AN ARC LENGTH OF 11.913 FEET TO A POINT ON A REVERSE CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 2,109.00 FEET, A RADIAL THROUGH SAID POINT BEARS N88°40159"W; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 02'19'58" AN ARC LENGTH OF 85.62 FEET TO A POINT ON THE NORTHERLY BOUNDARY LINE OF TRACT NO. 25986 AS PER MAP RECORDED IN BOOK 689, PAGES 40 THROUGH 44, RECORDS OF SAID COUNTY; THENCE LEAVING SAID EAST LINE OF BREA CANYON ROAD AND ALONG SAID NORTHERLY LINE S86°47'22"E, 246.77 FEET; THENCE S75°48129"E, 178.94 FEET TO A POINT ON THE NORTHWESTERLY BOUNDARY LINE OF SAID TRACT; THENCE ALONG SAID LINE N40°47'18"E, 186.01 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 1,425.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 32°05'20" AN ARC LENGTH OF 798.08 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N72'52'38"E, 91.78 FEET TO A POINT ON THE WESTERLY LINE OF LOTS 17 THROUGH 27 OF TRACT NO. 25987 AS PER MAP RECORDED IN BOOK 694, PAGES 24 THROUGH 28, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE N22°07'22"W, 773.44 FEET TO AN ANGLE POINT THEREON; THENCE N19 ° 25' 17"W, 95.75 FEET; THENCE ALONG THE NORTH LINE OF SAID LOT 27 AND ITS EASTERLY PROLONGATION N77°09116"E, 175.00 FEET TO A POINT ON A CURVE CONCAVE EASTERLY AND HAVING A RADIUS OF 170.00 FEET, SAID CURVE BEING THE EASTERLY LINE OF EVERGREEN SPRINGS DRIVE (60.00 FEET WIDE); THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 29"34'27" AN ARC LENGTH OF 87.75 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N16°43143"E, 57.35 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 25.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90°41'20" AN ARC LENGTH OF 39.57 FEET TO A POINT ON A COMPOUND CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 4,600.00 FEET, SAID Doc:96010.LEG 17 CURVE ALSO BEING THE SOUTH LINE OF PATHFINDER ROAD (100.00 FEET WIDE), A RADIAL THROUGH SAID POINT BEARS N17°25'03"E; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 07°15'35" AN ARC LENGTH OF 582.85 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S65°19122"E, 1,299.27 FEET TO A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 25.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 100°00'00" AN ARC LENGTH OF 43.63 FEET TO THE TRUE POINT OF BEGINNING. EXCEPTION NO. 2: BEGINNING AT THE CENTERLINE INTERSECTION OF DIAMOND BAR BOULEVARD AND PATHFINDER ROAD; THENCE ALONG THE CENTERLINE OF PATHFINDER ROAD (100.00 FEET WIDE) N65°19122"W, 85.68 FEET; THENCE AT RIGHT ANGLES TO SAID CENTERLINE N24°40'38"E, 50.00 FEET TO A POINT ON THE NORTHERLY LINE OF SAID PATHFINDER ROAD, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE ALONG SAID LINE N65'19122"W, 1,313.06 FEET TO A TANGENT CURVE CONCAVE SOUTH AND HAVING A RADIUS OF 4,500.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 23'58'21" AN ARC LENGTH OF 1,882.80 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N89°17143"W, 19.67 FEET TO THE SOUTHWEST CORNER OF LOT 3 OF TRACT NO. 27036 AS PER MAP RECORDED IN BOOK 683, PAGES 9 AND 10, RECORDS OF LOS ANGELES COUNTY; THENCE ALONG THE WEST LINE OF SAID LOT N12°23'00"E, 32.50 FEET TO THE SOUTH LINE OF LOT 4 OF SAID TRACT; THENCE ALONG SAID SOUTH LINE N82°39'43"W, 147.60 FEET TO THE WEST LINE OF SAID TRACT; THENCE ALONG SAID LINE NO2 ° O1' 57 "E, 453.99 FEET TO A POINT ON THE WESTERLY BOUNDARY LINE OF TRACT NO. 28579 AS PER MAP RECORDED IN BOOK 862, PAGES 40 THROUGH 46, RECORDS OF SAID COUNTY; THENCE ALONG SAID BOUNDARY LINE THE FOLLOWING COURSES: N31°58'04"W, 297.02 FEET; THENCE N16'06'05"W, 221.24 FEET; THENCE N01°11115"E, 113.54 FEET; THENCE N88'48'45"W, 36.08 FEET; THENCE N16°0610511W, 155.49 FEET; THENCE N81"07'00"E, 182.89 FEET; THENCE N08'53'00"W, 148.00 FEET TO A TANGENT CURVE CONCAVE EASTERLY AND HAVING A RADIUS OF 1,178.00 FEET; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 06025113" AN ARC LENGTH OF 132.00 FEET; THENCE NON -TANGENT TO SAID CURVE THE FOLLOWING COURSES: S87°32113"W, 146.44 FEET; THENCE N01°11'15"E, 478.25 FEET; THENCE N23°12130"E, 25.52 FEET; THENCE S84°07'10"E, 41.99 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE EASTERLY AND HAVING A RADIUS OF 1,278.00 FEET, A RADIAL THROUGH SAID POINT BEARS N88'32153"W; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 12°11'26" AN ARC LENGTH OF 271.91 FEET; THENCE N76°16'24"W, 10.54 FEET; THENCE N09'15'56"E, 13.30 FEET; THENCE N12°09'22"E, 32.81 FEET TO THE SOUTHWESTERLY CORNER OF PARCEL MAP NO. 13634 AS RECORDED IN PARCEL MAP BOOK 138, PAGES 35 THROUGH 39, RECORDS OF SAID COUNTY; THENCE ALONG THE WESTERLY Doc:96010.LEG 18 BOUNDARY LINE OF SAID PARCEL MAP N12'09'22"E, 383.20 FEET; THENCE N30°31115"E, 97.09 FEET; THENCE N66°28156"E, 284.70 FEET; THENCE N11°5410411E, 43.38 FEET TO THE SOUTHWESTERLY BOUNDARY LINE OF TRACT NO. 39679 AS PER MAP RECORDED IN BOOK 1083, PAGES 14 THROUGH 21, RECORDS OF SAID COUNTY; THENCE ALONG SAID BOUNDARY THE FOLLOWING COURSES: S60°45'19"E, 30.00 FEET; THENCE N77°10'46"E, 502.31 FEET; THENCE N59°10'13"E, 326.02 FEET; THENCE S78°25'49"E, 326.76 FEET; THENCE N07°12'19"E, 512.11 FEET; THENCE N46°24'06"E, 1,199.85 FEET; THENCE N61°57'41"E, 1,085.02 FEET; THENCE N52°48128"E, 324.61 FEET; THENCE N29°28118"E, 653.02 FEET; THENCE N78°47'22"E, 308.65 FEET; THENCE N46°38'32"E, 635.40 FEET; THENCE N08°28'15"W, 360.11 FEET TO A NON -TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,033.02 FEET, SAID CURVE ALSO BEING THE SOUTHERLY LINE OF GOLDEN SPRINGS DRIVE (BEING OF VARIABLE WIDTH FROM 80.00 FEET TO 95.00 FEET); THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 24"06'27" AN ARC LENGTH OF 434.65 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N57°25118"E, 70.25 FEET TO THE SOUTHWESTERLY BOUNDARY LINE OF PARCEL 2 OF SAID PREVIOUSLY MENTIONED PARCEL MAP NO. 13634; THENCE ALONG SAID BOUNDARY LINE THE FOLLOWING COURSES; S27°39157"E, 1,219.61 FEET; THENCE S22°34'44"W, 151.24 FEET; THENCE S54°13'08"E, 273.65 FEET; THENCE N60'49'56"E, 246.22 FEET; THENCE S88°17122"E, 289.68 FEET; THENCE N07°30'00"E, 6.95 FEET; THENCE N84°14130"E, 201.88 FEET TO A POINT ON THE NORTHWESTERLY BOUNDARY LINE OF LOT 11 OF TRACT NO. 40972 AS PER MAP RECORDED IN BOOK 981, PAGES 82 THROUGH 85, RECORDS OF SAID COUNTY; THENCE ALONG SAID BOUNDARY LINE THE FOLLOWING COURSES: N12°55104"W, 332.87 FEET; THENCE N21°54159"E, 98.42 FEET; THENCE S7201712511E, 171.13 FEET; THENCE N47'19'44"E, 386.35 FEET; THENCE N14°36159"W, 95.04 FEET; THENCE NO2°25'03"W, 118.07 FEET; THENCE N74042'33"E, 87.10 FEET; THENCE N05'48'16"E, 138.66 FEET; THENCE N52°31129"E, 146.20 FEET; THENCE N05'52'10"E, 398.17 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 3,050.00 FEET, SAID CURVE ALSO BEING THE SOUTHERLY LINE OF GRAND AVENUE (100.00 FEET WIDE), A RADIAL THROUGH SAID POINT BEARS S23°13122"W; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 03°07'42" AN ARC LENGTH OF 166.55 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S64°54'20"E, 946.43 FEET TO A TANGENT CURVE CONCAVE SOUTHWESTERLY Doc:96010.LEG 19 AND HAVING A RADIUS OF 13.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90'00'00" AN ARC LENGTH OF 20.42 FEET TO A TANGENT LINE BEING THE WESTERLY LINE OF MONTEFINO AVENUE (66.00 FEET WIDE); THENCE ALONG SAID LINE S25°0514011W, 50.01 FEET TO A TANGENT CURVE CONCAVE EASTERLY AND HAVING A RADIUS OF 433.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 32°08113" AN ARC LENGTH OF 242.87 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S07°02'33"E, 77.60 FEET TO A TANGENT CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 718.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 00'46'21" AN ARC LENGTH OF 9.68 FEET TO A POINT ON THE WESTERLY PROLONGATION OF THE SOUTH LINE OF LOT 12 OF SAID TRACT NO. 40972, A RADIAL THROUGH SAID POINT BEARS N83°43148"E; THENCE ALONG SAID PROLONGATION AND SOUTH LINE N85'45'08"E, 224.03 FEET TO THE NORTHEASTERLY LINE OF LOT 10 OF SAID TRACT NO. 40972; THENCE ALONG SAID LINE S64°54120"E, 434.14 FEET; THENCE S25°0514011W, 272.50 FEET; THENCE S15°08107"E, 264.52 FEET; THENCE S25°0612211W, 454.22 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 318.00 FEET, SAID CURVE ALSO BEING THE NORTHEASTERLY LINE OF MONTEFINO AVENUE (64.00 FEET WIDE), A RADIAL THROUGH SAID POINT BEARS S08°48159"W; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 17°22'16" AN ARC LENGTH OF 96.41 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N63°48'45"W, 156.36 FEET TO THE NORTHERLY PROLONGATION OF THE WESTERLY LINE OF LOT 9 OF SAID TRACT; THENCE ALONG SAID PROLONGATION AND WEST LINE S26'11'15"W, 403.63 FEET TO THE SOUTHWESTERLY BOUNDARY LINE OF SAID LOT 9; THENCE ALONG SAID BOUNDARY LINE THE FOLLOWING COURSES: S35°50'12"E, 29.15 FEET; THENCE S25°44'00"E, 152.06 FEET; THENCE S03°40'02"E, 190.01 FEET; THENCE S28°10'37"W, 10.57 FEET; THENCE S64°41'26"E, 295.14 FEET TO A POINT ON THE WESTERLY LINE OF DIAMOND BAR BOULEVARD (120.00 FEET WIDE), SAID POINT ALSO BEING THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 5,940.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 25°03'15" AN ARC LENGTH OF 2,597.43 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S50"09'00"W, 2,850.97 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 6,060.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 15°28'22" AN ARC LENGTH OF 1,636.51 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S34'40138"W, 300.06 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 40.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 80°00'00" AN ARC LENGTH OF 55.85 FEET TO THE TRUE POINT OF BEGINNING. EXCEPTION NO. 3: BEGINNING AT THE CENTERLINE INTERSECTION OF GOLDEN SPRINGS DRIVE AND GRAND AVENUE; THENCE ALONG THE CENTERLINE OF SAID GOLDEN SPRINGS DRIVE (80.00 FEET WIDE) S55°39'58"W, 74.50 FEET; THENCE AT RIGHT ANGLES TO SAID CENTERLINE N34°20'02"W, 40.00 FEET TO A POINT Doc:96010.LEG 20 ON THE WESTERLY LINE OF SAID GOLDEN SPRINGS DRIVE AND THE TRUE POINT OF BEGINNING; THENCE S55°3915811W, 15.48 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 1,190.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 31°49'52" AN ARC LENGTH OF 661.11 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S23°50106"W, 250.00 FEET TO A TANGENT CURVE CONCAVE NORTHERLY AND HAVING A RADIUS OF 1,110.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 74°33109" AN ARC LENGTH OF 1,444.32 FEET TO A POINT ON THE SOUTHWESTERLY LINE OF THAT CERTAIN LAND DESCRIBED PER DEED RECORDED SEPTEMBER 7, 1962 AS INSTRUMENT NO. 5660 OFFICIAL RECORDS OF LOS ANGELES COUNTY, A RADIAL THROUGH SAID POINT BEARS S08°23115"W; THENCE ALONG SAID LINE N64°20138"W, 758.38 FEET TO A POINT ON THE SOUTHEASTERLY RIGHT OF WAY LINE OF THE STATE OF CALIFORNIA FREEWAY ROUTE 60 (POMONA FREEWAY); THENCE ALONG SAID RIGHT OF WAY LINE THE FOLLOWING COURSES: N44°51'19"E, 339.39 FEET; THENCE N47°27'03"E, 463.09 FEET; THENCE N47°05'24"E, 128.83 FEET; THENCE N42°34'23"E, 314.95 FEET; THENCE N45°01155"W, 15.00 FEET; THENCE N42°30'51"E, 415.23 FEET; THENCE N45°24'27"E, 468.10 FEET; THENCE N47°03'12"E, 235.01 FEET; THENCE N48°19140"E, 96.93 FEET; THENCE N18°15'07"E, 36.92 FEET; THENCE N44053'24"E, 180.00 FEET; THENCE S87°12'09"E, 41.82 FEET; THENCE N48°19'40"E, 82.40 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 550.00 FEET, SAID CURVE ALSO BEING THE SOUTHWESTERLY LINE OF GRAND AVENUE (BEING OF VARIABLE WIDTH IN THIS AREA), A RADIAL THROUGH SAID POINT BEARS N52°54129"E; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 14'01'49" AN ARC LENGTH OF 134.68 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S23003142"E, 374.45 FEET TO A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 3,050.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 08°29'20" AN ARC LENGTH OF 451.89 FEET TO A POINT ON A REVERSE CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 27.00 FEET, A RADIAL THROUGH SAID POINT BEARS N58°26158"E; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 87°13'00" AN ARC LENGTH OF 41.10 FEET TO THE TRUE POINT OF BEGINNING. EXCEPTION NO. 4: BEGINNING AT THE CENTERLINE INTERSECTION OF BREA CANYON ROAD AND COLIMA ROAD AS SAID INTERSECTION IS SHOWN ON PARCEL MAP NO. 4739 AS PER MAP RECORDED IN PARCEL MAP BOOK 5, PAGE 8, RECORDS OF LOS ANGELES COUNTY; THENCE ALONG SAID CENTERLINE OF BREA CANYON ROAD S33°5213211E, 374.98 FEET; THENCE AT RIGHT ANGLES TO SAID CENTERLINE N56'07'28"E, 50.00 FEET TO THE EASTERLY LINE OF BREA CANYON ROAD AND THE TRUE POINT OF BEGINNING, ALSO BEING THE NORTHWESTERLY Doc:96010.LEG 21 CORNER OF TRACT NO. 27264 AS PER MAP RECORDED IN BOOK 722, PAGES 91 THROUGH 95, RECORDS OF SAID COUNTY; THENCE ALONG THE PERIMETER BOUNDARY OF SAID TRACT THE FOLLOWING COURSES: N13°21110"E, 54.49 FEET; THENCE N82036'41"E, 337.50 FEET; THENCE N38°22'06"E, 273.67 FEET; THENCE N56°29'07"E, 122.54 FEET; THENCE N76°07'08"E, 310.00 FEET; THENCE N82°37'40"E, 433.76 FEET; THENCE S18°16'20"E, 709.03 FEET; THENCE S40°14'39"W, 700.52 FEET; THENCE S82°36'20"W, 454.28 FEET; THENCE N28°11147"E, 108.36 FEET; THENCE S83°46'50"W, 68.31 FEET TO THE NORTHEAST CORNER OF LOT 1 OF TRACT NO. 35336 AS PER MAP RECORDED IN BOOK 1076, PAGES 44 AND 45, RECORDS OF SAID COUNTY; THENCE ALONG THE PERIMETER BOUNDARY OF SAID LOT 1 THE FOLLOWING COURSES: S12'08'33"W, 11.05 FEET; THENCE S35°19'37"W, 62.36 FEET; THENCE S23'36'34"W, 42.50 FEET; THENCE S07°48'09"W, 32.85 FEET; THENCE S35"08'04"W, 64.57 FEET; THENCE S72°19155"W, 27.23 FEET; THENCE N55°45'35"W, 60.75 FEET; THENCE N32°50'04"W, 56.25 FEET; THENCE N14°23110"W, 41.06 FEET; THENCE N08°0513011E, 98.29 FEET; THENCE N82"02'37"W, 104.27 FEET; THENCE S76"09'57"W, 74.57 FEET TO A POINT ON THE EASTERLY LINE OF BREA CANYON ROAD (100.00 FEET WIDE) AS SHOWN ON SAID TRACT NO. 35336; THENCE ALONG SAID LINE N13°37134"W, 102.76 FEET TO A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 1,550.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 20°15130" AN ARC LENGTH OF 548.04 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N33'52'32"W, 60.37 FEET TO THE TRUE POINT OF BEGINNING. EXCEPTION NO. 5: BEGINNING AT THE CENTERLINE OF LYCOMING STREET AND BREA CANYON ROAD AS SAID INTERSECTION IS SHOWN ON TRACT NO. 27394 AS PER MAP RECORDED IN BOOK 703, PAGES 3 THROUGH 6, RECORDS OF LOS ANGELES COUNTY; THENCE ALONG SAID CENTERLINE OF LYCOMING STREET S89'59'55"W, 208.96 FEET; THENCE AT RIGHT ANGLES TO SAID CENTERLINE S00°00'05"E, 30.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE ALONG THE PERIMETER BOUNDARY OF SAID TRACT THE FOLLOWING COURSES: S00°00'05"E, 170.00 FEET; THENCE N89'59'55"E, 252.83 FEET; THENCE S33°52'37"E, 84.30 FEET TO A NON -TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 1,550.00 FEET, A RADIAL THROUGH SAID POINT BEARS S65°20'14"W; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 09'12151" AN ARC LENGTH OF 249.26 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE THE FOLLOWING Doc:96010.LEG 22 COURSES: S33`52137"E, 13.53 FEET S02°26143"E, 105.47 FEET S34°35'30"W, 91.23 FEET S64°5912011W, 145.17 FEET S67°51'32"W, 380.45 FEET TO THE MOST SOUTHERLY CORNER OF LOT 50 OF SAID TRACT NO. 27394, SAID CORNER BEING A POINT ON THE NORTHERLY RIGHT OF WAY LINE OF THE STATE OF CALIFORNIA FREEWAY ROUTE 60 (POMONA FREEWAY); THENCE ALONG SAID RIGHT OF WAY LINE S67°5113211W, 218.43 FEET; THENCE S74°27123"W, 328.83 FEET; THENCE 578'54124"W, 1,151.53 FEET TO THE EAST LINE OF CURRIER DRIVE (60.00 FEET WIDE); THENCE ALONG SAID EAST LINE N00°0714811W, 1,232.18 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 15.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90°07143" AN ARC LENGTH OF 23.60 FEET TO THE SOUTH LINE OF LYCOMING STREET (60.00 FEET WIDE); THENCE ALONG SAID LINE N89°59155"E, 1,739.63 FEET TO THE TRUE POINT OF BEGINNING. EXCEPTION NO. 6: BEGINNING AT THE CENTERLINE INTERSECTION OF GRAND AVENUE AND DIAMOND BAR BOULEVARD AS SHOWN ON TRACT NO. 30367 AS PER MAP RECORDED IN BOOK 888, PAGES 9 AND 10, RECORDS OF LOS ANGELES COUNTY; THENCE ALONG THE CENTERLINE OF GRAND AVENUE N64°54"20"W, 410.00 FEET; THENCE AT RIGHT ANGLES TO SAID CENTERLINE N25°05'40"E, 50.00 FEET TO THE NORTHERLY LINE OF SAID GRAND AVENUE (100.00 FEET WIDE); THENCE ALONG SAID LINE N64°54'20"W, 1,795.53 FEET TO A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 2,950.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 25 ° 20' 58" AN ARC LENGTH OF 1,305.11 FEET TO A POINT ON THE SOUTH LINE OF PARCEL MAP NO. 8663 AS RECORDED IN PARCEL MAP BOOK 95, PAGES 91 AND 92, RECORDS OF SAID COUNTY, A RADIAL THROUGH SAID POINT BEARS 550'26138"W; THENCE ALONG SAID LINE S87°04138"E, 568.17 FEET TO THE SOUTHERLY CORNER OF THE BOUNDARY OF TRACT NO. 36346 AS PER MAP RECORDED IN BOOK 962, PAGES 51 THROUGH 58, RECORDS OF SAID COUNTY; THENCE ALONG THE PERIMETER BOUNDARY OF SAID TRACT THE FOLLOWING COURSES: N30°48'58"W, 367.98 FEET; THENCE N01'55'12"W, 340.67 FEET; THENCE N55°39157"E, 1,310.85 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 2,540.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 03'59133" AN ARC LENGTH OF 176.99 FEET TO A POINT, A RADIAL THROUGH SAID POINT BEARS S38°19136"E; THENCE S30°21'49"E, 484.87 FEET; THENCE S62°54'20"E, 113.25 FEET; THENCE S52°36'15"E, 256.81 FEET; THENCE S42°29'35"E, 128.82 FEET; THENCE S38°07'23"W, 390.29 FEET; THENCE S60°29'49"W, 787.85 FEET TO THE WESTERLY PROLONGATION OF THE NORTH LINE OF TRACT NO. 32457 AS PER MAP RECORDED IN BOOK 989, PAGES 12 THROUGH 14, RECORDS OF SAID COUNTY; THENCE ALONG SAID PROLONGATION Doc:96010.LEG 23 AND NORTH LINE S87°18131"E, 378.68 FEET TO AN ANGLE POINT THEREON; THENCE S77°47138"E, 772.06 FEET TO AN ANGLE POINT THEREON; THENCE CONTINUING ALONG SAID NORTH LINE AND ITS EASTERLY PROLONGATION N88°45'58"E, 1,266.95 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 2,950.00 FEET, A RADIAL THROUGH SAID POINT BEARS S72'05'45"E, SAID CURVE ALSO BEING THE WESTERLY LINE OF DIAMOND BAR BOULEVARD (100.00 FEET WIDE); THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 07°11125" AN ARC LENGTH OF 370.21 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S25°05'40"W, 438.31 FEET TO A POINT ON THE CENTERLINE OF CLEAR CREEK CANYON DRIVE (64.00 FEET WIDE) AS SHOWN ON SAID PREVIOUSLY MENTIONED TRACT NO. 30367; THENCE ALONG SAID CENTERLINE AND ITS NORTHWESTERLY PROLONGATION N64054'20"W, 704.00 FEET TO THE NORTHWESTERLY LINE OF PARCEL 1 OF PARCEL MAP NO. 6525 AS PER MAP RECORDED IN PARCEL MAP BOOK 76, PAGES 3 AND 4, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE S25'0514011W, 298.32 FEET TO THE SOUTHWESTERLY LINE OF SAID PARCEL 1; THENCE ALONG SAID LINE S64°54'20"E, 344.00 FEET TO THE SOUTHEASTERLY LINE OF PARCEL 2 OF SAID PARCEL MAP; THENCE ALONG SAID LINE S25'05140"W, 660.00 FEET TO THE TRUE POINT OF BEGINNING. EXCEPTION NO. 7: BEGINNING AT THE CENTERLINE INTERSECTION OF GOLDEN SPRINGS DRIVE AND DIAMOND BAR BOULEVARD AS SAID INTERSECTION IS SHOWN ON TRACT NO. 26203 AS PER MAP RECORDED IN BOOK 687, PAGES 71 AND 72, RECORDS OF LOS ANGELES COUNTY; THENCE ALONG THE CENTERLINE OF DIAMOND BAR BOULEVARD S33°20'00"E, 67.00 FEET; THENCE AT RIGHT ANGLES TO SAID CENTERLINE S56°40100"W, 60.00 FEET TO THE SOUTHWESTERLY LINE OF SAID DIAMOND BAR BOULEVARD (120.00 FEET WIDE); THENCE ALONG SAID LINE S33'20'00"E, 164.63 FEET TO A TANGENT CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 2,440.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 47'30'00" AN ARC LENGTH OF 2,022.84 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S14°10'00"W, 500.00 FEET; THENCE AT RIGHT ANGLES S75'5010011E, 10.00 FEET TO A POINT ON THE WESTERLY LINE OF SAID DIAMOND BAR BOULEVARD (100.00 FEET WIDE); THENCE ALONG SAID LINE S14°10100"W, 289.10 FEET TO A TANGENT CURVE CONCAVE EASTERLY AND HAVING A RADIUS OF 4,050.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 11°27'00" AN ARC LENGTH OF 809.35 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S02°43'00"W, 379.26 FEET TO A TANGENT CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 2,950.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 03'34'25" AN ARC LENGTH OF 184.00 FEET TO A POINT ON THE SOUTHERLY BOUNDARY LINE OF TRACT NO. 31141 AS PER MAP RECORDED IN BOOK 827, PAGES 83 THROUGH 88, RECORDS OF SAID COUNTY, A RADIAL THROUGH SAID POINT BEARS S83°42135"E; THENCE ALONG SAID BOUNDARY LINE THE FOLLOWING COURSES: N89°55'49"W, 145.84 FEET; THENCE N83°22'03"W, 86.58 FEET; THENCE N41'421581W, 172.82 FEET; THENCE N67°44'07"W, 459.24 FEET; THENCE N60' 39' 53"W, 70.05 FEET TO THE SOUTHWESTERLY BOUNDARY LINE OF TRACT Doc:96010.LEG 24 NO. 31139 AS PER MAP RECORDED IN BOOK 817, PAGES 38 THROUGH 41, RECORDS OF SAID COUNTY; THENCE ALONG SAID BOUNDARY LINE THE FOLLOWING COURSES: N60°39'53"W, 68.75 FEET; THENCE N52'07'30"W, 307.85 FEET; THENCE N45"33'321W, 289.93 FEET; THENCE S70°37'49"W, 135.68 FEET; THENCE N50°21156"W, 257.10 FEET; THENCE N12°31'44"W, 110.63 FEET; THENCE N29°06'53'E, 81.53 FEET; THENCE N48°31151"W, 339.99 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 2,540.00 FEET, A RADIAL THROUGH SAID POINT BEARS S48°32'03"E, SAID CURVE ALSO BEING THE EASTERLY LINE OF GOLDEN SPRINGS DRIVE (80.00 FEET WIDE); THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 22°33100" AN ARC LENGTH OF 992.28 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N19°04'57"E, 930.13 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 2,160.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 37'35'03" AN ARC LENGTH OF 1,416.89 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE N56°40'00"E, 157.77 FEET TO A TANGENT CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 27.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90"00'00" AN ARC LENGTH OF 42.41 FEET TO THE TRUE POINT OF BEGINNING. EXCEPTION NO. 8: BEGINNING AT THE CENTERLINE INTERSECTION OF GOLDEN SPRINGS DRIVE AND GRAND AVENUE AS SAID INTERSECTION IS SHOWN ON PARCEL MAP NO. 8663 AS PER MAP RECORDED IN PARCEL MAP BOOK 95, PAGES 91 AND 92, RECORDS OF LOS ANGELES COUNTY; THENCE ALONG THE CENTERLINE OF GOLDEN SPRINGS DRIVE N55°39157"E, 79.69 FEET; THENCE AT RIGHT ANGLES TO SAID CENTERLINE N34 ° 20' 03 "W, 40.00 FEET TO A POINT ON THE WESTERLY LINE OF GOLDEN SPRINGS DRIVE (80.00 FEET WIDE), SAID POINT ALSO BEING THE TRUE POINT OF BEGINNING AND THE BEGINNING OF A CURVE TANGENT TO SAID WESTERLY LINE, SAID CURVE BEING CONCAVE NORTHERLY AND HAVING A RADIUS OF 27.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 92055'49" AN ARC LENGTH OF 43.79 FEET TO A POINT ON A COMPOUND CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 2,950.00 FEET, SAID CURVE ALSO BEING THE NORTHEASTERLY LINE OF GRAND AVENUE, A RADIAL THROUGH SAID POINT BEARS S58°35'46"W; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 14°46137" AN ARC LENGTH OF 760.82 FEET TO A POINT ON A NON-TANGENT LINE, A RADIAL THROUGH SAID POINT BEARS S73°2212311W; THENCE ALONG SAID LINE N73°2410011E, 34.43 FEET; THENCE N10'25'00"W, 239.94 FEET TO A POINT ON THE SOUTHEASTERLY RIGHT OF WAY LINE OF THE STATE OF CALIFORNIA FREEWAY ROUTE 60 (POMONA FREEWAY); THENCE ALONG SAID RIGHT OF WAY LINE THE FOLLOWING COURSES: N21'06'45"E, 150.47 FEET; THENCE N68°53'18"W, 2.00 FEET; THENCE N21'06'45'E, 65.73 FEET; THENCE Doc:96010.LEG 25 N28°02119"E, 40.13 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 2,948.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 03°19'23" AN ARC LENGTH OF 170.98 FEET TO A POINT ON A NON -TANGENT LINE, A RADIAL THROUGH SAID POINT BEARS N58'38118"W; THENCE ALONG SAID LINE N29°24129"E, 173.55 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 3,002.00 FEET, A RADIAL THROUGH SAID POINT BEARS S47°10156"E; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 04'15157" AN ARC LENGTH OF 223.51 FEET TO A POINT ON A NON -TANGENT LINE, A RADIAL THROUGH SAID POINT BEARS N51°26153"W; THENCE ALONG SAID LINE N38°47'45"E, 393.05 FEET TO A NON -TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 9,998.00 FEET, A RADIAL THROUGH SAID POINT BEARS S50°13131"E; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 02`27112" AN ARC LENGTH OF 428.10 FEET TO A POINT ON A NON -TANGENT LINE, A RADIAL THROUGH SAID POINT BEARS S52°40143"E; THENCE ALONG SAID LINE S55°29'59"E, 2.00 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 10,113.00 FEET, A RADIAL THROUGH SAID POINT BEARS S53°53153"E; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 04'10146" AN ARC LENGTH OF 737.70 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE THE FOLLOWING COURSES: N31'55'21"E, 307.15 FEET; THENCE N34°28103"E, 270.27 FEET; THENCE N34'29'31'E, 134.09 FEET; THENCE N40°00156"E, 1,353.33 FEET TO A POINT ON THE NORTHEASTERLY LINE OF THAT CERTAIN PARCEL RECORDED IN DEED BOOK D1749, PAGE 949 OF OFFICIAL RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE 533'20'00"E, 425.81 FEET TO A POINT ON THE SOUTHWESTERLY LINE OF PROSPECTORS ROAD (64.00 FEET WIDE), THENCE ALONG A RADIAL LINE N57'44'41"E, 64.00 FEET TO A POINT ON A CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 793.00 FEET, SAID CURVE BEING THE NORTHEASTERLY LINE OF SAID PROSPECTORS ROAD; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 32 ° 03' 10" AN ARC LENGTH OF 443.63 FEET TO A POINT ON THE NORTHWESTERLY LINE OF PARCEL 4 OF PARCEL MAP NO. 4269 AS PER MAP RECORDED IN PARCEL MAP BOOK 49, PAGE 6, RECORDS OF SAID COUNTY, A RADIAL THROUGH SAID POINT BEARS S89°47151"W; THENCE ALONG SAID LINE N56°40100"E, 494.74 FEET TO THE NORTHEASTERLY LINE OF SAID PARCEL 4; THENCE ALONG SAID LINE S33°20100"E, 711.00 FEET TO THE SOUTHEASTERLY LINE OF SAID PARCEL 4; THENCE ALONG SAID LINE S51°1914911W, 551.44 FEET TO A POINT ON THE NORTHEASTERLY LINE OF SAID PROSPECTORS ROAD; THENCE AT RIGHT ANGLES TO SAID ROAD S32°39121"W, 80.00 FEET TO A POINT ON THE NORTHEASTERLY LINE OF TRACT NO. 26203 AS PER MAP RECORDED IN BOOK 687, PAGES 71 AND 72, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE S57°20'39"E, 448.83 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 2,240.00 FEET, A RADIAL THROUGH SAID POINT BEARS N57°20139"W, SAID CURVE ALSO BEING THE WESTERLY LINE OF GOLDEN SPRINGS DRIVE (80.00 FEET WIDE); THENCE SOUTHWESTERLY ALONG SAID LINE THROUGH A CENTRAL ANGLE OF 19°34124" AN ARC LENGTH OF 530.65 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S19°04157"W, 930.13 FEET TO A TANGENT CURVE CONCAVE Doc:96010.LEG 26 NORTHWESTERLY AND HAVING A RADIUS OF 2,460.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 36°35'00" AN ARC LENGTH OF 1,570.71 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S55°39'57"W, 1,949.91 FEET TO THE TRUE POINT OF BEGINNING. EXCEPTION NO. 9: BEGINNING AT THE POINT OF INTERSECTION OF THE SOUTHERLY RIGHT OF WAY LINE OF THE STATE OF CALIFORNIA FREEWAY ROUTE 60 (POMONA FREEWAY) WITH THE NORTHWESTERLY LINE OF GOLDEN SPRINGS DRIVE (80.00 FEET WIDE) AS SAID INTERSECTION IS SHOWN ON TRACT NO. 24731 AS PER MAP RECORDED IN BOOK 678, PAGES 94 AND 95, RECORDS OF LOS ANGELES COUNTY, SAID NORTHWESTERLY LINE BEING A CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,160.00 FEET, A RADIAL THROUGH SAID POINT OF BEGINNING BEARS S71°21148"E; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 40'11'24" AN ARC LENGTH OF 813.68 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S58°49136"W, 1,874.68 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,710.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 10°00'24" AN ARC LENGTH OF 298.65 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S68°50'00"W, 400.89 FEET TO THE SOUTHWESTERLY LINE OF LOT 18, 19 AND 20 OF TRACT NO. 24725 AS PER MAP RECORDED IN BOOK 655, PAGES 66 THROUGH 68, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE N21°1010011W, 174.70 FEET TO THE NORTHERLY CORNER OF THAT CERTAIN PARCEL AS RECORDED IN DEED BOOK D3303, PAGE 792, OFFICIAL RECORDS OF SAID COUNTY; THENCE ALONG THE NORTHWESTERLY LINE OF SAID PARCEL S51°29'20"W, 191.13 FEET TO THE SOUTHWESTERLY LINE OF SAID PARCEL; THENCE ALONG SAID LINE S35'07'10"E, 140.00 FEET TO A POINT ON A CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 615.00 FEET, SAID CURVE ALSO BEING THE NORTHWESTERLY LINE OF GOLDEN SPRINGS DRIVE (80.00 FEET WIDE); THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 29°45'50" AN ARC LENGTH OF 319.48 FEET TO A TANGENT LINE; THENCE ALONG SAID LINE S25°07'00"W, 388.74 FEET TO THE SOUTHWESTERLY LINE OF TRACT NO. 50519 AS PER MAP RECORDED IN BOOK 1205, PAGES 86 THROUGH 88, RECORDS OF SAID COUNTY; THENCE ALONG SAID LINE N64"53'00"W, 150.00 FEET TO AN ANGLE POINT; THENCE S51°35'13"W, 120.00 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 170.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 05°42'50" AN ARC LENGTH OF 16.96 FEET TO A TANGENT LINE BEING THE SOUTHWESTERLY LINE AND ITS SOUTHERLY PROLONGATION OF TRACT NO. 24724 AS PER MAP RECORDED IN BOOK 647, PAGES 7 THROUGH 9, RECORDS OF SAID COUNTY; THENCE ALONG SAID PROLONGATION AND SOUTHWESTERLY LINE N33°20'00"W, 1,004.76 FEET TO A POINT ON THE SOUTHERLY LINE OF PALOMINO DRIVE (60.00 FEET WIDE); THENCE ALONG SAID SOUTHERLY LINE N58°13'48"E, 191.40 FEET; THENCE AT RIGHT ANGLES TO SAID STREET N31°46'12"W, 60.00 FEET TO A POINT ON THE EASTERLY BOUNDARY LINE OF PARCEL MAP NO. 1749 AS PER MAP RECORDED IN PARCEL MAP BOOK 27, PAGE 57, RECORDS OF SAID COUNTY; THENCE ALONG SAID BOUNDARY LINE THE FOLLOWING COURSES: N13°10158"W, 112.51 FEET; THENCE Doc:96010.LEG 27 N54009'46"E, 40.89 FEET; THENCE S65°34134'E, 9.04 FEET; THENCE N17603'46"E, 303.90 FEET TO A POINT ON THE SOUTHERLY RIGHT OF WAY LINE OF THE STATE OF CALIFORNIA FREEWAY ROUTE 60 (POMONA FREEWAY); THENCE ALONG SAID RIGHT OF WAY LINE THE FOLLOWING COURSES: N69°28'14"E, 338.59 FEET; THENCE N50°51109"E, 105.62 FEET; THENCE N71°19'47"E, 2,106.80 FEET; THENCE N65°38'45"E, 600.07 FEET; THENCE N89036'34'E, 490.07 FEET; THENCE N88°29134"E, 370.07 FEET TO THE POINT OF BEGINNING. CONTAINING: 1,454.303 ACRES, MORE OR LESS. Doc:96010.LEG 28 EXHIBIT C PROPOSED PUBLIC FACILITIES AND INFRASTRUCTURE IMPROVEMENT PROJECTS LOCATION / PROJECT DESCRIPTION Streetscape Improvements Diamond Bar B1, at north City limits Diamond Bar B1, btw Highland Valley & Sunset Crossing - streetscape Diamond Bar Bl, at Sunset Crossing - intersection treatment Diamond Bar Bl, btw Gentle Springs & Golden Springs - streetscape Diamond Bar B1, at Goldrush / frontage road (west side) - streetscape Diamond Bar Bl, btw Clear Creek Canyon & Mountain Laurel - streetscape Diamond Bar Bl, at Grand Av - streetscape, landscape, intersection treatment Diamond Bar Bl, at Mountain Laurel / frontage road (west side) - streetscape Diamond Bar Bl, btw Fountain Springs & Cold Springs - streetscape, landscape Diamond Bar Bl, btw Crooked Creek & Brea Canyon Rd - streetscape, landscape Brea Canyon Rd, btw north & south City limits - parkway improvements Brea Canyon Rd, at north City limits - streetscape, entry statement Brea Canyon Rd, at Gerndale - ditch / drainage improvements Brea Canyon Rd, at Pathfinder Rd - streetscape Brea Canyon Rd, at south City limits - streetscape, entry statement Lemon Av, at Lycoming - entry statement Lemon Av, north of Golden Springs Dr - median DiambuVed-hc LOCATION / PROJECT DESCRIPTION Streetscape Improvements, continued Golden Springs Dr, at west City limits Golden Springs Dr, at Lemon - streetscape Golden Springs Dr, btw Lemon & Gona Ct - median Golden Springs Dr, at Brea Canyon Rd - streetscape, landscape, intersection treatment Golden Springs Dr, at Adel - landscape Golden Springs Dr, btw Gateway Center & Copley - streetscape, sidewalks Golden Springs Dr, at Grand Av - streetscape, landscape. intersection treatment Golden Springs Dr, along Diamond Bar Golf Course - parkway improvements Golden Springs Dr, btw Prospectors & Torito - streetscape, intersection treatment Golden Springs Dr, at Rancheria / frontage road (south side) -streetscape Golden Springs Dr, btw Platina & El Encino / frontage road (north side) - streetscape Golden Springs Dr, at Ballena / frontage road (south side) - streetscape Grand Av, at west City limits - streetscape, landscape, entry statement Grand Av, along Diamond Bar Golf Course - parkway improvements Grand Av, at Golden Springs - streetscape, landscape, intersection treatment Grand Av, at 800 S. Grand - streetscape Grand Av, btw Summit Ridge & Longview - streetscape, landscape Grand Av, at east City limits - streetscape, landscape, entry statement Pathfinder Rd, at west City limits - entry statement Pathfinder Rd, btw west City limits and Diamond Bar Bl - median Pathfinder Rd, at Evergreen Springs / frontage road - streetscape Di—bar\,.d-h. LOCATION / PROJECT DESCRIPTION Streetscape Improvements, continued Walnut Dr, at west City limits - entry statement and other similar improvements which may be of benefit to the Diamond Bar Economic Revitalization Area. Signalization Improvements Route 57 Fwy, NB on-ramp at Diamond Bar Bl / Sunset Crossing - signalization Route 57 Fwy, SB off -ramp at Sunset Crossing - signalization Diamond Bar Bl, at Highland Valley - left -turn signal Diamond Bar B1, at Sunset Crossing - left -turn signal Diamond Bar Bl, at Gentle Springs - left -turn signal Diamond Bar B1, at K -Mart entrance - left turn signal Diamond Bar B1, at Golden Springs Dr - signal modification Diamond Bar Bl, at Tin / Highcrest - signalization Diamond Bar B1, at Goldrush - left -turn signal Diamond Bar Bl, at Steep Canyon - signalization Diamond Bar B1, at Clear Creek Canyon - signalization Diamond Bar Bl, at Ralph's / Pic 'N' Save intersection - signalization Diamond Bar Bl, at Montefino - signalization Diamond Bar Bl, at Quail Summit - signalization Diamond Bar Bl, at Maple Hill - signalization Diamond Bar Bl, at Acacia Hill - signalization Diamond Bar Bl, at Kiowa Crest - left turn signal Diamba?redexhc LOCATION / PROJECT DESCRIPTION Signalization Improvements, continued Diamond Bar B1, at Silver Hawk - signalization Diamond Bar Bl, at Morning Canyon - signalization Diamond Bar B1, at Shadow Canyon - protected left turn signal Diamond Bar Bl, at Fountain Springs - protected left turn signal Diamond Bar B1, at Sugarpine - protected left turn Diamond Bar Bl, at Cold Springs - protected left turn Diamond Bar Bl, at Crooked Creek - signalization Diamond Bar Bl, at Brea Canyon Rd - intersection modification Brea Canyon Rd, at Washington - left -turn signal Brea Canyon Rd, at Lycoming - left -turn signal Brea Canyon Rd, at Golden Springs Dr / Route 60 Fwy - intersection modification Brea Canyon Rd, at Via Sorella / Glenbrook - signalization Brea Canyon Rd, at Diamond Crest Estates access - signalization Brea Canyon Rd, at South Pointe Middle School access - signalization Brea Canyon Rd, at Pathfinder Rd - left turn signal Brea Canyon Rd, at Fountain Springs - signalization Brea Canyon Rd, at Cold Spring - signalization Brea Canyon Rd, at Cool Springs - signalization Brea Canyon Rd, at Copper Canyon - signalization Brea Canyon Rd, at Silver Bullet - signalization Diambar\red-hc 4 LOCATION / PROJECT DESCRIPTION Signalization Improvements, continued Lemon Av, at Lycoming - signalization Lemon Av, at Walnut - signalization Lemon Av, at Earlgate / WVUSD Education Center - signalization Lemon Av, at Golden Springs Dr - left turn signal Brea Canyon Cutoff Rd, at Fallow Field - left turn signal Brea Canyon Cutoff Rd, at Route 57 Fwy SB on & off ramps - signalization Golden Springs Dr, at Calboume / Arkley - signalization Golden Springs Dr, at Rapid View - signalization Golden Springs Dr, at Adel - signalization Golden Springs Dr, at Caltrans Yard - signalization Golden Springs Dr, at Grand Av - intersection modification Golden Springs Dr, at Raquet Club / Golf Course - signalization Golden Springs Dr, at Golden Prados - left -turn signal Golden Springs Dr, at Prospectors - left -turn signal Golden Springs Dr, at Rancheria - signalization Golden Springs Dr, at Platina - signalization Golden Springs Dr, at San Leandro - signalization Golden Springs Dr, at Ballena - left -turn signal Golden Springs Dr, at Carpio - left -turn signal Golden Springs Dr, at Sylvan Glen - signalization Diambar\rede he LOCATION / PROJECT DESCRIPTION Signalization Improvements. continued Golden Springs Dr, at High Knob - signalization Grand Av, at apartments / 800 S. Grand - left turn signal Grand Av, at Cahill - signalization Grand Av, at Cleghom Grand Av, at Country View - signalization Grand Av, at Shotgun - left -turn signal Pathfinder Rd, at Peaceful Hills - signalization Pathfinder Rd, at Evergreen Springs - left turn signal Preparation of a traffic signal system master plan for all streets which may be of benefit to the Diamond Bar Economic Revitalization Area and other similar improvements which may be of benefit to the Diamond Bar Economic Revitalization Area. Circulation Improvements Assistance with extension of Highcrest Dr to Diamond Bar Bl and other similar improvements which may be of benefit to the Diamond Bar Economic Revitalization Area. Storm Drain Improvements Preparation of a sewer master plan for all property within the Diamond Bar Economic Revitalization Area Preparation of a storm drain master plan for all property within the Diamond Bar Economic Revitalization Area and other similar improvements which may be of benefit to the Diamond Bar Economic Revitalization Area. Di—bar4ed-h. 6 LOCATION / PROJECT DESCRIPTION Public Facilities Improvements Park development (Site D) - eg. buildings, recreation facilities, ball fields Summit Ridge Park (expansion) - eg. buildings, recreation facilities, ball fields Heritage Park (expansion) - eg. parking, community center building Community Center (expansion) - eg. 3,000 sq. ft. meeting roon Sycamore Canyon Park (improvements) - eg. multiuser bandshell/gazebo shell, portable replacement, picnic shelter Ronald Regan Park (improvements) - eg. tennis and basketball courts, light fixtures replacement Peterson Park (expansion) - eg. parking, lighted tennis and basketball courts Larkstone Park (development) Corporate Yard - retrofit Diamond Bar High School, South Pointe Middle School - lighting improvements, tennis and basketball courts, ball fields Diamond Ranch High School, Lorbeer Middle School, Chaparrel Middle School - lighting improvements, tennis & basketball courts, ball fields Library (expansion / development) - retrofit and other similar improvements which may be of benefit to the Diamond Bar Economic Revitalization Area. Diambartredexhc PRELIMINARY REPORT FOR THE REDEVELOPMENT PLAN FOR THE •� c, pi., �.,• , March, 1997 Prepared for: Diamond Bar Redevelopment Agency 21660 East Copley Drive, Suite 100 Diamond Bar, California 91765.4177 (909) 396.5666 Prepared by: Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, California 92705 (714) 541.4585 EXECUTIVE SUMMARY The intent of this executive summary is to provide a brief overview of the purpose and contents of this Preliminary Report ("Report"). This Report contains the required components of a preliminary report, as outlined in Section 33344.5 of the California Community Redevelopment Law ("CRL"), and provides the documentation and analyses necessary to complete the required components. This Preliminary Report is comprised of five component parts. The first component explains the reasons that the Diamond Bar Redevelopment Agency ("Agency") wishes to adopt the Redevelopment Plan for the Diamond Bar Economic Revitalization Area. The second documents the adverse physical and economic blighting conditions, as defined in Section 33031 of the CRL, that characterize the proposed redevelopment project area as blighted while demonstrating the need for redevelopment. The third component provides a determination as to whether the proposed Diamond Bar Economic Revitalization Area is predominantly urbanized, pursuant to Section 33344.5(c). The fourth component demonstrates that the proposed redevelopment program is financially feasible, and the fifth component describes how the proposed projects to be pursued by the Agency will alleviate or eliminate blighting conditions in the Project Area. The Agency is proposing to adopt a Redevelopment Plan for the Diamond Bar Economic Revitalization Area principally to facilitate the revitalization of the primary commercial and industrial corridors along the Route 57 and 60 Freeways and along major thoroughfares throughout the City of Diamond Bar ("City"), including Diamond Bar Boulevard, Brea Canyon Road, Golden Springs Drive and Grand Avenue. More specifically, the Redevelopment Agency wishes to adopt the Redevelopment Plan for the Diamond Bar Economic Revitalization Area with the goal of facilitating the planned revitalization of this area under the guidance and direction of the Diamond Bar General Plan. During the past decade, the City has struggled to compete with neighboring cities in both the San Gabriel Valley and Orange County for the attraction of commercial businesses and development. Factors related to design, which have hindered the economic viability of commercial properties include: 1) the historic pattern of commercial (particularly retail) development oriented away from the freeway system and region -serving roadway network; 2) the development of commercial space incrementally into physically smaller spaces, exclusively designed to accommodate neighborhood and community - serving uses; and 3) the almost complete lack of any freeway or major roadway visibility due to the topography of the City. These characteristics, together with other blighting conditions, have had a profoundly negative affect on the City's ability to reverse conditions of blight and attract businesses and/or development to the community. Due to the City's severely limited share of the 1 percent property tax revenues (currently 5 percent of the 1 percent property tax base) and the advent of Proposition 13, the City has been forced to rely heavily on revenues generated by commercial uses. However, the factors listed above, coupled with the impacts of the recessionary economy through the early 1990's, Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 i Preliminary Report have resulted in significant business vacancies, and have impeded any private sector interest in both the conversion of suitable improved sites and raw land into revenue producing uses. Additionally, high vacancies have discouraged property owners in the Project Area from providing adequate maintenance of buildings and deterioration as well as other factors have become prevalent within the Diamond Bar Economic Revitalization Area ("Project Area"). Because these impediments have continued and, in some cases, worsened in recent years, the City has elected to initiate and establish a redevelopment program in the proposed Project Area. In order for an area to qualify for redevelopment, it must be a blighted area (as defined in the CRL) and redevelopment must be necessary to remove blight. This Report provides the documentation, analyses, and explanation that the proposed Project Area is a blighted area. Section B of this Report provides a detailed description of and presents evidence regarding existing physical and economic blighting conditions in the proposed project area. More specifically, the results of field surveys of the proposed Project Area, conducted in June and December 1996 for the purposes of documenting physical blighting conditions, indicate that a substantial portion of the building stock in the proposed Project Area is in need of repair, ranging from deferred maintenance to extensive rehabilitation. Structures suffering from substandard design and defective design are evident throughout the proposed Project Area. The inability of these structures to meet contemporary market standards with regard to architectural and space requirements has resulted in high vacancy rates in commercial retail and office uses. The irregular form and shape of properties, as well as the multiple individual ownership patterns, hinders the proper usefulness and development of the area. These physical characteristics have negatively impacted the economic environment of the proposed Project Area as evidenced by low retail sales taxes, impaired investments, high vacancy rates, and increasing crime. Circulation and access deficiencies have also negatively impacted the economic viability of properties in the proposed Project Area. To remove or alleviate these conditions, and to reduce the burden on the community, the Agency proposes a redevelopment program based on redevelopment activities permitted by law to address these serious conditions. This redevelopment program consists of a public improvement program, a commercial/industrial rehabilitation program, a business attraction and retention program, a parking improvements program and a low and moderate income housing program. These programs, combined with other activities as provided in the Redevelopment Plan, will assist in the alleviation and elimination of blight. The estimated amount of revenues available to fund the redevelopment program (most coming from tax increment allocation) have been calculated to provide a preliminary determination of the financial feasibility of implementing the redevelopment program. This analysis shows that a sufficient amount of revenues will be available to complete the Agency's proposed program to eliminate blight, thereby demonstrating that the Project is financially feasible. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 ii Preliminary Report INTRODUCTION The Diamond Bar Redevelopment Agency is proposing to adopt the Redevelopment Plan for the Diamond Bar Economic Revitalization Area ("Redevelopment Plan"). Proceedings for the proposed adoption were initiated with the adoption of Resolution Number 96.19 by the Planning Commission of the City of Diamond Bar approving and adopting the Preliminary Plan for the Diamond Bar Economic Revitalization Area ("Preliminary Plan"). Generally, the Agency's objectives for the Diamond Bar Economic Revitalization Area are to: • Alleviate blighting conditions which constitute physical and economic liabilities, requiring redevelopment in the interest of the health, safety, and general welfare of the people of the community; and • Promote economic development within the Project Area. If adopted, the Redevelopment Plan would guide all future redevelopment projects, programs, and activities within the Project Area. In order to adopt the proposed Redevelopment Plan, the Agency must comply with the redevelopment plan adoption procedures set forth in the CRL. The CRL provides the Agency with the authority to undertake revitalization efforts in blighted areas within the City of Diamond Bar. As defined by the CRL, redevelopment includes the rehabilitation, reconstruction, and improvement of existing structures; the provision of public improvements; and the replanning or redesign of blighted properties within a project area. The CRL permits the Agency to adopt a redevelopment plan subject to: 1) the preparation of documents by the Agency to substantiate the need for redevelopment; 2) the convening of a joint public hearing of the City Council and the Agency on the plan adoption; and, 3) consideration and adoption of an adopting ordinance by the City Council. This Preliminary Report on the proposed Redevelopment Plan for the Diamond Bar Economic revitalization Area ("Preliminary Report") has been prepared pursuant to Section 33344.5 of the CRL. The primary purpose of this Preliminary Report, according to the CRL, is to provide information to assist affected taxing agencies in assessing the potential impacts of the proposed project. The "affecting taxing agencies" are governmental taxing agencies which levied a property tax on all or any portion of the property located within the boundaries of the project within the last fiscal year. With the approval of this Preliminary Report, along with a Draft Environmental Impact Report and draft Redevelopment Plan, the Agency will invite consultations with the affected taxing entities and the community as to the scope and nature of the proposed Redevelopment Plan. Following these consultations, the Agency will incorporate comments into the Agency's Report to the City Council. The Report to the City Council, Final Environmental Impact Report, and final Plan will be considered by the Agency and City Council at a joint public hearing tentatively scheduled in May, 1997. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 1 Preliminary Report This Preliminary Report contains the following five sections: SECTION A The Reasons for the Selection of the Project Area SECTION B A Description of the Physical and Economic Conditions Existing in the Project Area SECTION C A Determination as to whether the Project Area is Predominantly Urbanized SECTION D A Preliminary Assessment of the Proposed Method of Financing the Redevelopment of the Project Area, including an Assessment of the Economic Feasibility of the Project and the Reasons for the Provision of Tax Increment SECTION E A Description of How the Proposed Projects to be Pursued by the Agency Will Improve or Alleviate Physical and Economic Blighting Conditions in the Project Area Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 2 Preliminary Report SECTION A The Reasons for the Selection of the Project Area BACKGROUND The general perception of the Diamond Bar community is one of high valued real-estate and middle to high-income housing. However, this perception has erroneously created an image (to those who live outside of Diamond Bar) of high-income or at the very least, successful, attractive and thriving retail development. It is also generally perceived that the high -valued real estate results in significant municipal revenues. In contrast to this perception is the fact that the City receives only 5 percent of the 1 percent general property tax levy and is facing a significant fiscal deficit in recent years. Unfortunately, these popular perceptions do not reflect the true nature of the (non-residential) local economy, which has suffered considerable decline during the past decade. In order to analyze the causes of this decline, historical development patterns must be examined. Prior to incorporation, development patterns in the City generally reflected poor planning practices. For nearly 30 years the City of Diamond Bar developed under the jurisdiction of Los Angeles County. The lack of adequate planning practices applied to development within the City during this period of time resulted in the creation of isolated residential areas, small poorly designed commercial centers with limited access and freeway visibility, and the general fragmentation of uses throughout the City. Commercial properties within the City primarily consist of small-scale, neighborhood -serving uses, such as supermarkets, banks, hardware stores, fast food restaurants, retail and service oriented businesses, and gas stations. According to local real estate brokers, commercial retail properties within the City have been more severely affected by the economic downturn in the southern California region between 1990 and the present time than other surrounding cities in the region. This is evidenced by the stagnation of development in the City, dwindling retail sales revenues and the City's high commercial vacancy rates which is currently between 20 to 40 percent. In contrast, neighboring cities such as Brea, Industry and Pomona have experienced a rapid development of shopping centers, constructed to service expanding commuter populations traveling along the Route 57 and 60 Freeways, as well as residents on a regional level. This, coupled with a regional shift in consumer shopping preferences to "power" centers and large discount retailers, as evidenced by numerous economic studies conducted for the City, has resulted in residents traveling outside of the City to purchase goods and services. Factors, including building design problems and a lack of freeway visibility, have resulted in the commercial and light industrial properties in the City becoming uncompetitive with surrounding cities. As existing businesses have left the City and new businesses in the region locate almost exclusively outside of the City (primarily in search of more desirable space), critically high vacancy rates have resulted. These high vacancy rates translate into diminished lease revenues collected by commercial property owners, and, as a result, necessary maintenance of buildings has been deferred or ignored. In other words, declining lease revenues have resulted in the Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 A-1 Preliminary Report declining profitability of commercial buildings, making the cost of routine maintenance prohibitive. This chain of events has ultimately resulted in the deterioration of the majority of the structures in the commercial and industrial corridors in the City. More specifically, 62 percent of all structures in the Project Area are in need of some form of rehabilitation ranging from deferred maintenance to extensive rehabilitation. At the same time, insufficient parking, irregularly shaped lots, and multiple ownership exacerbate these problems. Additionally, defective design plagues approximately 28 percent of all buildings in the proposed Project Area. Substandard design, obsolescence and lack of parking are also frequently noted characteristics negatively impacting the economic viability of commercial and industrial properties in the Project Area. Specifically, results from the field survey of existing physical conditions include the following: • Approximately 1 in every 4 structures in the Project Area suffers from substandard design, including obsolescence; and • Over 21 percent of all structures in the Project Area lack sufficient parking. There is little incentive for businesses to lease or purchase property and to invest in upgrades to these buildings due to the fact that there are newer, contemporary structures, with desirable amenities located in neighboring areas that require no additional improvement or investment. In particular, the obsolete nature of commercial and retail areas of the Project Area is unmistakable when comparing the area to other thriving retail centers in surrounding areas such as Brea, Industry and Chino. These neighboring cities offer new retail centers housing many anchor tenants, such as Home Depot, Mervyns or Price/Costco, in one location with convenient access and ample parking. In contrast, commercial centers in the Project Area primarily consist of older, small, retail strip centers and other buildings originally constructed in the 1960's and 1970's which have had little or no upgrades or improvements to the original structure. Nearly all of these locations lack visibility, suitable freeway or street access, and convenient parking. Many of these first generation retail centers, such as Montifino Plaza, Golden Springs Plaza and the Country Hills Center, which were designed to accommodate the needs of retailers 10 to 20 years ago, are inadequate to meet the needs of today's retailers. Factors such as substandard design, obsolescence, inadequate parking and deterioration are also prevalent in the industrial area in the southwest portion of the Project Area. Many of these industrial properties lack sufficient off-street parking, loading space and sufficient interior building space to accommodate the needs of these manufacturing and warehouse uses. This circumstance poses a dangerous public safety risk on Lycoming Street, as this road services vehicular parking, truck loading/off-loading, and access to Walnut Elementary School. The majority of the industrial structures along Washington Avenue and East Walnut Drive require moderate to extensive rehabilitation and exhibit poor physical conditions including damaged exterior building material, broken windows and broken or deteriorated roofing material. As these conditions continue to worsen, the adjoining residential communities are negatively impacted. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 A-2 Preliminary Report The general lack of competitiveness of the Project Area is also indicated by one of the lowest per capita taxable retail sales in the region. The "Prospects for Economic Development in the City of Diamond Bar", ("Economic Study") prepared by Economics Research Associates, ("ERA"), in August 1996, states that there is a high level of retail leakage and that the City has one of the lowest per capita retail sales taxes in the region. Information regarding taxable retail sales in Diamond Bar and surrounding cities from 1991 through 1994 confirms the City's significant retail sales leakage problem. Specifically, Diamond Bar has the third lowest per capita sales tax in the region. It is important to note that per capita retail sales in Diamond Bar have declined by 5 percent between 1990 and 1994, while the per capital retail sales in all but one city in the region have increased by one to 24 percent over the same period of time. This leakage will require extraordinary tools to capture these revenues due to the large number of well-developed centers in surrounding cities, including regional mall and supermall opportunities. The decline in retail sales tax revenues to the City of Diamond Bar can be directly attributed to the fact that the Project Area (which represents almost all commercial and industrial properties within the City) lacks the large community -serving and regional serving uses which consumers desire, including restaurants, department stores, adequate discount stores, club stores, multiple automobile dealerships, appliance stores, etc. This is evidenced by a recent survey conducted by Pacific Research Strategies, Inc. (PRS) of consumer preferences. According to this survey, 70 percent of Diamond Bar residents purchase retail merchandise outside of the City due to the lack of shopping opportunities. This occurrence of residents traveling outside of the City to purchase retail items has resulted in the City having one of the lowest per capital retail sales figures in the region, as mentioned above. Again, Diamond Bar has been unsuccessful in attracting and retaining viable retail businesses due to poor site layout, topography problems and the substandard location of retail developments, which are oriented away from the substantial freeway system surrounding the City. Unfortunately, the neighborhood -serving businesses in Diamond Bar depend on the draw of consumers from the local neighborhoods, not the region, and the progressive loss of a local customer base is negatively impacting these businesses. Local businesses find it difficult to survive in this local economy where there is an abundance of well- developed retail centers located in Brea and Industry, for example, which are in close proximity to Diamond Bar residents. Because residents tend to shop for goods and services outside of the City, a significant number of businesses in the commercial areas have either failed or left the area, as evidenced by significant vacancies in retail strip centers. The Golden Springs Plaza, located on the comer of Golden Springs Drive and Lemon Avenue, currently has a vacancy rate of approximately 53 percent and is a primary example of a retail center in the Project Area which has a vacancy problem due to substandard design and obsolescence. Finally, information regarding crime in the Project Area provided by the Los Angeles County Sheriffs Department indicates that crimes against property have increased as much as 23 percent in the City within the last year. Not only does crime present a health and safety threat to those visiting and patronizing Project Area businesses, but it further discourages residents from patronizing businesses and is an impediment to attracting needed larger scale commercial uses to this area. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 A-3 Preliminary Report It is also important to note that nearly every city in the region and surrounding the Project Area, such as Brea, Industry, Pomona and Chino, have utilized redevelopment in previous years. Although the existence of redevelopment projects in surrounding cities is not technically a condition of blight as defined in the CRL, the success of these projects initiated through redevelopment has had an indirectly negatively impacted on the business climate in Diamond Bar, as the newly revitalized commercial areas of these cities have attracted Diamond Bar residents to purchase goods and services outside the City. In addition, the more active retail and commercial centers in the redevelopment project areas in these cities have enticed successful businesses to locate out of the City. The above described conditions have had the effect of creating a significant negative commercial climate which covers most primary corridors of the Project Area. In response to these conditions, the Planning Commission selected the Project Area, and the Agency is proposing to adopt as a project area the frontage along the Route 57 and 60 Freeways, as well as the primary commercial corridors along major thoroughfares in the City. As part of the redevelopment of this area, the Agency proposes to initiate programs to rehabilitate and modernize properties in the commercial centers and the industrial areas of the City. In addition, proposed public improvement projects throughout the Project Area are intended to address significant existing circulation and infrastructure deficiencies which hinder the economic viability of the Project Area. It is important to emphasize that it is neither the intent nor desire of the Agency to establish the proposed redevelopment project solely to facilitate the attractions of large-scale, discount oriented retail development. In contrast, it is the expressed hope and intention of the Agency to provide for the rehabilitation and improvement of existing development within the City in order to alleviate existing blighting conditions to attract and retain much needed community servicing businesses. Redevelopment will provide the means with which the City can improve and increase the economic viability of commercial and industrial properties. Through redevelopment activities, the Agency can assist property owners to improve properties, facilitate the attraction of necessary business to adequately service the needs of residents and visitors to Diamond Bar, while retaining controls to insure that any new commercial activity in the Project Area reflects the unique character of the community. GOALS AND OBJECTIVES As described in more detail in Section B, the Project Area suffers from a significant number of physical and economic blighting conditions. Neither private enterprise nor governmental section acting alone have been able to alleviate these blighting conditions. Therefore, by creating the proposed Project Area the Agency will be able to implement redevelopment activities by alleviating existing blighting conditions, revitalize the local economy, correct infrastructure deficiencies, and create employment opportunities. Removal of blight and the prevention of its recurrence in the Project Area would be of benefit to property owners of the Project Area, as well as the residents of the entire City. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 A-4 Preliminary Report Eliminating and preventing the spread of blight, maintaining existing businesses, as well as attracting new businesses and encouraging new development are the Agency's primary reasons for proposing the adoption of a redevelopment plan for the Project Area. In general, the goals and objectives of the redevelopment program are as follows: 1. Implement the policies, goals, objectives and strategies as presented in the General Plan for the City of Diamond Bar. 2. Eliminate and prevent the spread of conditions of blight, including but not limited to; underutilized properties and deteriorating buildings, incompatible and uneconomic land uses, deficient infrastructure and facilities, obsolete structures, and other economic deficiencies, in order to create a more favorable environment for commercial, industrial, office, residential, and recreational development. 3. Provide opportunities for retail and other non-residential commercial and office uses. 4. Promote the economic development of the Project Area by providing an attractive, well -serviced, well -protected environment for all residents and visitors. 5. Improve public facilities and public infrastructure to provide adequate infrastructure facilities and public services. 6. Promote local job opportunities in the community. 7. Encourage the cooperation and participation of residents, businesses, business persons, public agencies, and community organizations in the economic revitalization of the Project Area. 8. Implement design and use standards to assure high aesthetic and environmental quality, and provide unity and integrity to developments within the Project Area. 9. Preserve and enhance the unique, open space resources in the community. 10. Provide and regulate the supply of parking to meet the needs of both residents and commercial businesses. 11. Remove impediments to land disposition and development through the assembly of property into reasonably sized and shaped parcels served by improved infrastructure and public facilities. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 A-5 Preliminary Report 12. Recycle and/or develop underutilized parcels to accommodate higher and better economic uses while enhancing the City's financial resources. 13. Increase, improve, and preserve the supply of housing affordable to very low, low and moderate income households. In the following sections, the objectives of the Redevelopment Plan are discussed in greater detail. Section B provides a description of the physical and economic conditions existing in the Project Area. A determination that the Project Area is predominantly urbanized is presented in Section C. The economic feasibility of the project is analyzed in Section D. Section E of this Preliminary Report delineates the proposed projects to be undertaken through the implementation of the Redevelopment Plan, and identifies how the projects will mitigate blight in the Project Area. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 A-6 Preliminary Report SECTION B A Description of the Physical and Economic Conditions Existing in the Project Area LEGISLATIVE REQUIREMENTS Definition of Blight The CRL provides in Section 33030(a) that "there exist in many communities blighted areas which constitute physical and economic liabilities, requiring redevelopment in the interest of the health, safety, and general welfare of the people of these communities and of the state." Section 33030(b) defines a blighted area as "one that contains both of the following: "(1) An area that is predominately urbanized, as that term is defined in Section 33320.1, and is an area in which the combination of conditions set forth in Section 33031 is so prevalent and so substantial that it causes a reduction of, or lack of, proper utilization of an area to such an extent that it constitutes a serious physical and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. "(2) An area that is characterized by either of the following: "(A) One or more conditions set forth in any paragraph of subdivision (a) of Section 33031 and one or more conditions set forth in any paragraph of subdivision (b) of Section 33031. "(B) The condition described in paragraph (4) of subdivision (a) of Section 33031." Section 33030(c) also states that a "blighted area also may be one that contains the conditions described in subdivision (b) and is, in addition, characterized by the existence of inadequate public improvements, parking facilities, or utilities." Section 33031(a) describes the following "physical conditions that cause blight": "(1) Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions can be caused by serious building code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors. "(2) Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-1 Preliminary Report "(3) Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of the project area. "(4) The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership. Section 33031(b) also describes the following "economic conditions that cause blight": "(1) Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that require the use of agency authority as specified in Article 12.5 (commencing with Section 33459). "(2) Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. "(3) A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. "(4) Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults, that has led to problems of public safety and welfare. "(5) A high crime rate that constitutes a serious threat to the public safety and welfare." Provided that other conditions of physical and economic blight are present, a blighted area may also be one that is characterized by the existence of inadequate public improvements, parking facilities and utilities. The characteristics of both physical and economic blight, as defined above, are present throughout the Project Area. The characteristics of physical blight include deteriorated structures; lots/buildings suffering from defective design, substandard design, and inadequate size; a lack of parking; and incompatible uses. The characteristics of economic blight in the Project Area include an abnormally high number of business vacancies, low lease rates, hazardous materials problems, a high crime rate, and impaired investments, including low retail taxable sales, all of which are indicative of declining market conditions. These blighting characteristics are detrimental to surrounding uses and the community. PROPERTIES INCLUDED FOR REDEVELOPMENT PURPOSES Conditions of blight predominate throughout and injuriously affect the entire Project Area. If and to the extent that properties are not blighted, their inclusion in the Project Area is necessary and appropriate for one or more of the following reasons and redevelopment purposes: (1) in order to effectively plan and carry out the Project; (2) because such properties are impacted by the conditions existing on adjacent properties, and correction of such conditions may require the Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-2 Preliminary Report imposition of design, development or use requirements on properties in the event they are rehabilitated or redeveloped by their owners; (3) to impose uniform requirements over a geographically defined and identified area of the City; (4) for the provision of low and moderate income housing; and (5) because such properties are part of a blighted area. STUDY APPROACH AND METHODOLOGY Several data sources were utilized to quantify existing conditions in the Project Area. Data sources utilized in the preparation of this Report are listed in Appendix 1. An important data source for evaluating the existence and prevalence of conditions that characterize blight in the Project Area were field surveys conducted by the Rosenow Spevacek Group, Inc. ("RSG"), the Agency's consultant, in June and December, 1996. The surveys examined the existing physical and economic conditions of each parcel within the Project Area as observed from the public rights-of-way. Both physical and economic indicators were observed in the field surveys, including deterioration and dilapidation, defective design, substandard design and inadequate parking. The results of the field surveys, as well as other data collected, are presented below within the same categories as defined in the CRL. Also, an explanation of the method used for assessing these conditions is provided by category. The surveys and supplementary research included analyzing each parcel to determine conditions of blight present. The criteria established for determining the presence of the majority of the blighting conditions in the Project Area are as follows: Deterioration: A structure was determined to be deteriorated if it was observed to be suffering from a deteriorated roof or eaves; chipped or peeling paint; damaged exterior building material; exposed wiring; inadequate utilities; non-structural damage; damaged exterior building material; broken windows; door or windows out of alignment; sagging roof; and/or deteriorated foundation. Defective Design or Defective Physical Construction: A parcel and/or building suffers from defective design when setbacks do not comply with current requirements; lacks parking; ingress and egress are difficult for vehicular traffic; or when a building or site has been poorly laid out. A parcel suffers from defective physical construction when structures appear to be built from materials that are substandard pursuant to current building codes, such as corrugated metal, and would not be permitted if the structure were built today; lack windows; or have a variety of other physical inadequacies which prevent or substantially hinder the economic capacity, use or potential re -use of a building. Substandard Design: A building or parcel which suffers from substandard design is characterized by obsolescence, inadequate building sizes, inadequate setbacks, and/or outdoor storage and production. Lack of Parking: A parcel lacks off-street parking in instances in which vehicles are parked on sidewalks, double parked on a property or where vehicle parking for one property spill over to other properties. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-3 Preliminary Report Incompatible Adjacent or Nearby Uses: A property with incompatible adjacent or nearby uses results from a predominate land uses which negatively impacts other land uses in the area. For example, the presence of an elementary school site in a predominantly industrial area which lack adequate buffers typically prevents or substantially hinders the economic use or capacity of uses of properties. Irregularly Formed and Shaped Parcels or Lots in Multiple Ownership: A parcel was determined to be irregularly formed or shaped based on a review of Los Angeles County assessor parcel maps. In addition, the ownership of one or more parcels was analyzed to determine multiple ownership. Hip -h -Business Vacancies: A building with a vacancy rate of 20 percent or more was considered to exhibit high vacancies during the field surveys conducted in June and December 1996. In addition, City vacancy rates were considered high if real estate data indicates that these rates are among the highest in the region. The other data sources include City records, economic studies, the California State Department of Finance, the California State Board of Equalization, the Los Angeles County Assessor records, and interviews with realtors, property owners, and leasing agents. The data and information sources consulted and employed to document conditions in the Project Area are provided in Appendix 1 and are cited throughout the text and tables. While RSG believes all information sources to be reliable, it is not responsible for the accuracy of data provided by such sources. PROJECT AREA SETTING The proposed Project Area is comprised of approximately 1,454 acres located in the City of Diamond Bar in Los Angeles County (Map B-1). The Project Area is generally bounded by Highland Valley Road to the north, the City limits to the south, the Diamond Bar/City of Industry boundaries to the west, and Diamond Bar Boulevard and Golden Springs Drive to the east. More specifically, the Project Area primarily includes the entire length of the Route 57 and 60 Freeways, and commercial corridors within the City boundaries. Major land uses in the Project Area consist of retail, commercial, and light industrial uses, with a few scattered single family residential uses located near commercial, office, and light industrial properties. There are also many vacant lots scattered throughout the Project Area which are located in areas that have been developed for urban uses. A map of the Project Area is attached as Exhibit 1 of this Report. The map included herein as Map B-2 depicts the boundaries of the Project Area. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-4 Preliminary Report MAP B- I -REGIONAL MAP MIC BLIGHTING CONDITIONS WITHIN THE PROJECT AREA Physical Conditions that Cause Blight The California Community Redevelopment Law describes physical conditions that cause blight [Section 33031(a)]. These physical conditions are assessed in terms of the health and safety of persons and the economic viability and development of an area. The condition of the building stock is an indicator of the health and safety of a neighborhood and community. Neighborhoods where conditions are poor or improvements are faulty jeopardize the health and safety of the occupants in the community as a whole. The physical blighting conditions that the properties within the boundaries of the Diamond Bar Economic Revitalization Area suffer from include: deterioration and dilapidation of all types of buildings; buildings of substandard designs; buildings of defective design; incompatible land uses consisting of public uses and some residential uses adjacent to industrial and commercial uses; and parcels of irregular form and shape which are under multiple ownership. The presence and persistence of these conditions reflect a lack of investment by property owners to maintain or improve their properties in standard condition to assure the safety of persons who live or work in the area. In addition, conditions of deterioration and dilapidation, and factors such as substandard buildings have a serious impact on the ability of the City to remediate poor conditions and facilitate private investment of properties. In many cases, the extraordinary high cost to remodel existing buildings to be competitive in today's commercial and industrial market makes such an effort infeasible. The high costs involved in upgrading inadequate infrastructure in the Project Area also forces private investors to seek other locations within the City, the Los Angeles County Region, or the State of California. It is important to emphasize that the Project Area is part of an important resource to the City for commercial and industrial development and job growth. Poor physical conditions place a burden on the community by reducing the City's ability to meet its goal of fostering economic growth, development and redevelopment. Mitigating these deficiencies will require a highly concerted effort by both the community and the private sector. Neither entity acting alone possesses the ability to remediate the deficiencies exhibited in the Project Area. The following discussion describes and documents the physical blighting conditions found to be pervasive within the Diamond Bar Economic Revitalization Area. The information presented in this section of the Report is drawn principally from field surveys of the Project Area conducted by RSG in June and December 1996. These surveys were performed from the sidewalk or public rights-of-way, and buildings and parcels were rated as to the condition and other blight factors, such as defective design and inadequate parking. Map B-3 provides a graphic area view of the location and types of physical blighting conditions found in the Project Area. Photographs which illustrate blighting conditions are also included as Appendix 2 to this Report. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March,1997 B-5 Preliminary Report AMOND BAR CONOMIC IITALIZATION AREA 'SICAL BLIGHTING :)NDITIONS MAP )ration - Deferred Maintenance to ;ive Rehabilitation ive Design and/or Factors sting or Substantially Hindering the mically Viable Use or Capacity of gs or Lots )atible Uses More of Above Physical Blighting ons arly Shaped Parcels under Multiple ship School Land ® Utility idequate Public Improvements t a Part of Project Area l a�� Buildings in Which it is Unsafe or Unhealthy for Persons to Live or Work Deterioration As described previously, the City's historical development patterns while under County jurisdiction have created isolated, poorly -designed neighborhood -serving commercial centers with limited access and freeway visibility, and the general fragmentation of uses throughout the City. The absence of appropriate planning practices in the development of Diamond Bar has had severe repercussions on the local economy. More specifically, the retail space in the City is oriented away from the extensive freeway system and the region -serving roadway network that surrounds it. The majority of the retail space in the City was developed incrementally and exclusively into smaller physical spaces, designed to hold small-scale neighborhood -serving tenants. Additionally, and perhaps most importantly, the commercial retail space is completely hidden from the freeway system by the community's topography. These factors, coupled with the economic downturn caused by a recession in the southern California region and a regional shift in consumer shopping preferences to "power" centers and large discount retailers, has resulted in an abnormally high number of vacancies (20 to 40 percent) in the majority of the commercial areas of the City. Commercial office and light industrial properties have suffered a similar fate as a result of inadequate planning practices under the County jurisdiction and competition from cities such as Industry, Brea, and Pomona. High vacancies have led to significantly diminished lease revenues in recent years and necessary maintenance of buildings has frequently been deferred or ignored as property owners are receiving considerably less revenue or negative return on their investment and either refuse or are unable to fund needed improvements. The factors presented above have resulted in both the economic and physical decline of the primary commercial areas of the City. The results of the field survey indicate that overall approximately 62 percent of the structures in the Project Area are in need of maintenance ranging from deferred maintenance to extensive rehabilitation. The nexus between high business vacancies and deterioration is evidenced by occupancy rates of retail centers such as Fairway Plaza and Golden Springs Plaza. Both Fairway Plaza (located on Diamond Bar Boulevard at the 57 Freeway) and Golden Springs Plaza (located near the corner of Lemon Avenue and Golden Springs Drive) are one of the only developments which are directly adjacent to and visible from either the Route 57 or 60 Freeways. However, in the case of Fairway Plaza, approximately 50 percent of this retail center is vacant and exhibits conditions of deterioration, including damaged exterior building materials, nonstructural damage, chipped and peeling paint, and exposed wiring. Similarly, Golden Springs Plaza is approximately 53 percent vacant and is in need of moderate rehabilitation. The deteriorated state of commercial retail buildings in the City, resulting from a lack of investment in these properties, negatively impacts the economic viability of businesses. In order to illustrate this point, the results of a recent survey of consumer preferences in Diamond Bar, conducted by Pacific Research and Strategies ("PRS") were analyzed. Of the 400 residents surveyed, 24 percent felt that shopping areas in Diamond Bar do not provide an attractive environment in which to shop. March, 1 97 acek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-6 Preliminary Report In addition to the primary retail centers in the City, smaller retail strip centers and commercial office plazas scattered throughout the Project Area are in need of moderate to extensive rehabilitation. Along Brea Canyon Road, Diamond Bar Boulevard, and Golden Springs Drive, deficiencies include damaged exterior building material, deteriorated roofing material and eaves, and in some cases, broken windows. Perhaps the highest incidences of significant deterioration were noted near the comer of Golden Springs Drive and Brea Canyon Road, on the entire length of Via Sorella. Existing land uses in this portion of the Project Area include commercial retail, multifamily residential units converted to offices, a single family residential unit, and auto related uses, all located along Via Sorella, with limited access opportunities as the street dead -ends at the 60 Freeway. The building conditions noted during the field survey include chipped and peeling paint, inadequate utilities, damaged exterior building material, outdoor storage, deteriorated eaves, a broken window, and a sagging roof. Industrial structures along Brea Canyon Road and Washington Avenue exhibit the highest incidences of deterioration in the Project Area. Several of the industrial structures in the Project Area exhibit damaged exterior building material, deteriorated roofing and inadequate utilities, as well as the outdoor storage of materials and other debris. As discussed on page B-9 of this Report, these conditions further contribute to the physical decline of these properties. Photographs 1 through 16 provide examples of deteriorated buildings in the Project Area. The process of deterioration can also be self-perpetuating. The presence of properties which exhibit signs of deterioration may deter owners of neighboring properties from improving or even maintaining their properties. It appears that any benefits that might accrue to their properties from improving them will be diminished or negated due to the condition of surrounding parcels. Then they are less likely to take on the financial burden to upgrade their properties. For instance, when deteriorating conditions are prevalent throughout an area it is often difficult for a properly maintained property to attract a buyer. This occurs because the area's overall deteriorated condition sends a message of owner apathy to potential investors and presents a risk in terms of possible decreases in property values if deteriorated conditions are permitted to persist, as the results of the above mentioned survey suggests. In order to address these blighting conditions, the Agency is proposing a commercial/industrial rehabilitation program in order to encourage and assist in rehabilitating, restoring and improving structures in the Project Area. Lots/Buildings Suffering from Defective Design or Defective Physical Construction Buildings, structures, or their additions that are constructed with materials that do not meet current design or construction standards may be considered defective in design. Such buildings can present safety hazards, be functionally inefficient, or facilitate their own deterioration. Defects may exist from the moment a given building is completed; or, they may evolve as uses within the building or within the surrounding buildings change over time. Conditions of defective design or physical construction can be manifested in a number of ways. One way is when existing conditions do not meet modern construction standards established to ensure the Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-7 Preliminary Report health and safety of building occupants. Such defects may not technically be code violations but rather deficiencies resulting from evolutionary improvementsin building code standards that have occurred since the building's construction. The results of the field survey indicate that approximately 28 percent of all structures ithe Project Area exhibit one or more conditions of defective design including inadequate vehicular n access, substandard building material(s) and inadequate loading areas. The largest concentration of buildings in the Project Area with conditions of defective design were observed in commercial/office and retail structures near the corner of Pathfinder Road and Brea Canyon Road on the east side of the 57 Freeway and several shopping centers located near the intersection of Diamond Bar Boulevard and Grand Avenue. Inadequate vehicular access problems plague the majority of the smaller retail centers in the Project Area. Typically, these centers provide few (very limited) access points for business patrons. In addition, lack of or inadequate loading areas (within retail properties) result in trucks loading and unloading in parking lots, often impeding access to businesses and restricting traffic flow. For example, access to the Vineyard Bank Plaza, which contains approximately 24 tenant spaces, is limited to one narrow driveway on Diamond Bar Boulevard, and one narrow driveway on Grand Avenue. Traffic counts obtained from the City indicate that this intersection experiences one of the highest volumes of traffic within the Project Area. Inadequate loading areas, coupled with limited access points of these retail centers, result in potentially hazardous situations for business patrons, particularly at peak hours. The parking configuration in the Vineyard Bank Plaza consists of two-tiered lots which, as with the rest of the shopping center, have been built on a slope. Photographs 17 and 18 show the access problems which have resulted from the design problems of this center. The Economic Study prepared by ERA, also sites inadequate or unusual access to interior structures stating that "buildings are located behind buildings that face the front arterial street. Entry ways to rear structures are often through a driveway that is narrow and constricted, requiring (local) knowledge to arrive at the correct address". Commercial uses in other portions of the Project Area, such as properties located on Via Sorella (a dead-end street), also have limited access points. A prime example of design layout problems in this area is a converted apartment building which currently houses office uses, depicted in photograph 19. Not only is this property located on a dead end street, it is virtually invisible from the street level. It has only one access point (depicted in photograph 20) up a steep hill resulting in limited visibility to patrons traveling to and from the property. In addition to posing potential safety hazards, conditions such as inadequate loading and poor vehicular access to businesses and parcels also limit the potential for private sector development and redevelopment to effectively utilize properties suffering from high vacancies, deterioration and defective design. Loading activities which restrict traffic flow and impede access to businesses were noted, particularly at the retail center located at the corner of Diamond Bar Boulevard and Montefino Avenue (Photographs 33 and 34). Here, loading activities are taking place in the parking lot as a result of inadequate loading space in the back of the structure. Both Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B_8 Preliminary Report of the shopping centers located in this area suffer from deterioration and one of the two centers currently has a vacancy rate of nearly 30 percent. Conditions of inadequate vehicular access and inadequate loading are discussed in detail in the next section of this Report. In order to address conditions of defective design in the Project Area, the Agency intends to implement a commercial/industrial rehabilitation program, described above and later in Section E of this Report, which will assist property owners in modernizing and rehabilitating structures. Factors that Prevent or Substantially Hinder the Economically Viable Use or Capacity of Buildings or Lots Substandard Design Substandard design is identified as a factor that prevents or substantially hinders the economically viable use or capacity of buildings or lots under Section 33031(a)(2) of the CRL. Conditions of substandard design limit the potential for private sector development and redevelopment to effectively utilize properties suffering from high vacancies, deterioration and defective design. Substandard design includes obsolescence, which typically reflects architecture, site layout problems, and other deficiencies of building or properties that do not meet the contemporary requirements of commercial or industrial uses. The results of the field survey indicate that nearly 1 out of every 4 buildings and/or properties in the Project Area, or 24 percent, has one or more characteristics of substandard design. Overall, observable conditions of substandard design documented during the field survey include obsolescence and outdoor storage and/or production. Again in order to analyze substandard design issues in the Project Area, historical development patterns in the City must be examined. As mention previously, the Diamond Bar area was developed over a 30 -year period while under the jurisdiction of Los Angeles County, prior to the City's incorporation in 1989. Although the City is commonly referred to as a "planned community", Diamond Bar developed as individual residential tracts of detached single family homes. A minimal amount of spot commercial and other nonresidential uses were also developed while the area was part of County unincorporated territory. A lack of regulations, controls, and planning policies resulted in the development of isolated commercial retail centers with virtually no freeway or major right-of-way visibility and limited access. The issues of poor planning, uncontrolled development, and lack of regulatory controls were the primary factors which inspired the incorporation of the City in 1989. At the time of incorporation, commercial development, primarily consisting of neighborhood retail centers and some office properties, continued to be built in close proximity to newly developed residential areas. However, with the initiation of the recession in 1991, it became increasingly difficult for the City to attract developers to the area. Contributing to the recessionary downturn felt in the development of the area were low population densities and the geographic isolation of the community away from the existing freeway network. Rosenow Spevacek Group, Inc. March, 1997 B-9 Diamond Bar Redevelopment Agency Preliminary Report The designated location of retail developments away from major freeways, and the lack of necessary freeway visibility which resulted has been cited by property owners in the Project Area as one of the primary factors contributing to high vacancies. In the "Diamond Bar Retail Retention Plan", prepared by Magellan Group, Inc., October, 1992, ("Retail Retention Plan") property owners/managers were quoted citing negative impacts resulting from the lack of freeway visibility of the retail centers in the City. For example, a representative of the Seeley/Wolff Property Management Company stated that the "main negative affects for the (Country Hills) Center is visibility". In addition, according to many local real estate brokers, impacts of the recession were most significant with regard to small businesses which make up nearly all of the retail and commercial uses in the City. As these businesses failed or moved out of the City and into larger more modern commercial space with adequate freeway visibility, vacancies increased in numbers to alarming heights. The lack of freeway visibility, the awkward layout of the commercial and retail areas of the City (away from the extensive freeway system) and the relatively small size and neighborhood serving commercial nature of the structures and properties, as well as the overall lack of contemporary upgrades and the relatively recent change in shopping preferences has resulted in the majority of the retail properties in the Project Area becoming obsolete. Obsolete properties are those that have outlived their usefulness and are no longer economically viable. This condition often occurs as competing newer, more efficiently designed, buildings or developments become available in a market area. Obsolete buildings quickly lose their appeal as marketing conditions and consumer preferences change, or as factors important to the function for which the buildings were designed change, making the buildings no longer useful in terms of their original function or purpose. Both of these situations often result in vacancies. The perception that the City's commercial properties are obsolete are evidenced by statements to that effect made over the last two years in recent real estate trade or business journal articles as well as statements made by representatives of Koll Development and CB Commercial. According to real estate professionals, there has been a market shift in the makeup of shopping centers. More specifically, the market place is moving towards the large scale, discount value oriented centers. In an article published in the Orange County Business Journal on October 23, 1995, Sheri Cameron, Director of Research at CB Commercial, states that the increased emphasis on one-stop shopping opportunities in such retail power centers, made possible by super grocery stores and multidepartment stores has made the unanchored strip center virtually obsolete. Due to the fact that the retail market in Project Area, and the City as a whole, is weak in comparison to other cities in the region, the obsolete physical characteristics of its commercial outlets means an additional risk in conducting business and locating there because of the costs associated with remodeling to meet modern requirements. This cost, in turn, represents an additional risk to potential business operators which they may not incur at comparable locations. Condition of obsolescence are particularly apparent when comparing commercial centers in the Project Area to those outside of the City and surrounding areas, such as the new power centers in Rasenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-10 Preliminary Report the cities of Industry and Chino. Centers such as this typically house anchored tenants such as IKEA, Home Base, Mervyn's, and/or a discount value retailer in one location with convenient access and ample parking. In contrast, the commercial and retail centers within the Project Area are primarily smaller unanchored strip centers, constructed in the 1970's and 1980s. These strip commercial centers have had little or no improvements or upgrades done to the original structure. Nearly all of these locations lack desirable tenants, suitable access or freeway visibility. As mentioned above, the obsolete nature of the strip retail centers and shopping centers has resulted in high vacancies, high turnovers, and profitability problems in the Project Area. One retail center in particular, located near the corner of North Diamond Boulevard and Highland Valley Road, has a significantly high occurrence of vacancies. Of the 20 tenant spaces located in this center, 14 are currently vacant. Additionally, the Diamond Creek Village Center and the Golden Springs Plaza are approximately 62 percent and 44 percent vacant, respectively. The obsolete nature of these retail centers has not only resulted in an overall rise in vacancies, but also has resulted in limited shopping opportunities for Diamond Bar residents. These limited opportunities have led to residents purchasing goods and services outside of the City, as discussed on page B-18 of this Report, and has caused a significant retail sales leakage problem for the City. These conditions of obsolescence are also documented extensively in the Economic Study prepared by ERA, considered a leader in the field of assessing current economic conditions, economic trends, and conducting general economic analysis. In this Economic Study, ERA makes the following statements regarding current trends in successful retail development: "during the last three to five years, the nature of retail has undergone some important transformations. The rise of the power center with major discount anchors such as Target, Wal-Mart, and the spread of membership warehouse retailers such as Price Club - Costco and Sams Club, have undermined traditional retail development in communities across the nation. At the same time, new inventory control technology, along with decreased transportation costs have led to the development of category killer such as Toys R Us or IKEA. These stores are able to use economy's of scale to dominate retail sales in one type of good over an entire regional market. In both cases, category killers and the discount anchors require large parcels of land with strong regional visibility." Additionally, the ERA Economic Study stated the following: "retail developments in Diamond Bar may be viewed as containing less attractive ranges in depths of goods and therefore be increasingly unable to compete with newer spaces elsewhere in the region. While the sites may be suitable for community -inconvenience - oriented retail sales, shopping habits have been transformed by the evolving new approaches to merchandising goods.... However, because much of the space in the City is not suitable to meet the transformed conditions of the new retail market place, Diamond Bar vacancy rates and the resultant leakage of resident spending, will continue as consumer dollars are directed towards the new discount, high volume retailers." Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-11 Preliminary Report A summary of conditions of all retail centers in the City prepared by ERA is included on Table B-1. Another frequently noted condition of substandard design documented during the field survey of blighting conditions was outdoor storage. The storage of wood, toxic materials, auto parts, or other materials around buildings poses health and safety hazards. The presence of outdoor storage is also an indicator that the existing building stock provides inadequate space for modern business activity. When outdoor storage areas are unscreened, as in the Project Area, it contributes to the declining appearance of the area. Photographs 23 through 32 show examples of outdoor storage and production. It is important to note that another factor damaging the viability of commercial and retail space in Diamond Bar is the fact that there are currently 15 million square feet of gross leasable area in surrounding cities that are in direct competition with Diamond Bar for businesses and retail sales dollars. The majority of this space has been built recently and consists of very large retail spaces along the 60 Freeway. The larger space and the freeway visibility, as well as the presence of major anchor tenants attracted regional serving tenants and consumers. Additionally, according to the ERA Economic Study and local real estate brokers, there has been a regional shift in shopping trends and preferences as "power centers" and large retailers have been developed in several of the cities surrounding Diamond Bar including Pomona, Chino, Industry and Montclair. According to regional real estate brokers, the development of these power centers negatively impacted commercial uses in the City as residents were now leaving the City for increased shopping opportunities in there communities. Both the failure of small businesses and the development of more desirable shopping opportunities outside of the City has led to a very critical vacancy problem in the City. Property owners in Diamond Bar now collect lower amounts of lease revenues, which has resulted in declining profits for property owners, discouraging property owners from routine maintenance and/or upgrades to properties. The commercial/industrial rehabilitation program proposed by the Agency will alleviate these blighting conditions by providing revenues which will enable property owners to construct necessary improvements to existing structures and upgrade properties to meet current market standards. Lack of Available Parking Other factors, similar to substandard design, can also prevent or substantially hinder the economic viability of uses or capacity of buildings or lots as identified in Section 33031 a 2 of the CRL. Other similar factors specific to the Project Area include inadequate i parking. ) Properties that do not have adequate available parking for patrons, employees or residents, and/or do not provide satisfactory access for vehicles and pedestrians experience diminishing economic value. For the purposes of this Report, only gross deficiencies in parking were noted during the field surveys, such as complete lack of street parking adjacent to a business, parked cars blocking driveway entrances, and double parked cars. In addition, parking studies conducted by City staff were also analyzed for the purposes of this section. notenow Spevacek Group, Inc Diamond Bar Redevelopment Agency March, 1997 8-12 Preliminary Report Inadequate parking is a significant factor inhibiting the economic viability of properties in the Project Area. The field survey results indicate that overall approximately 21 percent of the Properties in the Project Area do not have the adequate parking needed to effectively conduct business. Additionally, and perhaps more importantly, the results of a survey of consumer Preferences conducted by PRS in December 1995 indicates that nearly 40 percent of 400 persons interviewed stated that retail merchants need to offer more parking spaces to their consumers. Many of the older commercial buildings are built to the property lines without adequate parking provisions. In addition to affecting business operations, the lack of parking interferes with vehicular and pedestrian circulation. Many of the light industrial and commercial uses located in the Project Area also lack sufficient off street parking and, as a result, employees and patrons are forced to park along the streets, and in some cases residential streets, adjacent to these uses. As shown in photographs 36 and 37, the residential street adjacent to the commercial office structure on the corner of Fallow Field Drive and Brea Canyon Road is lined with cars as the parking lot for this structure only contain two visible visitor parking spaces. Another example of parking deficiencies is shown in photographs 38 and 39. The structures in the industrial park, located adjacent to Lycoming Street, each contain 2 tenant spaces. However, it appears that there are only 8 parking spaces for each structure, which translates into 4 parking spaces for each tenant space. Photographs 40 and 41 also depict additional parking deficiencies throughout the Project Area. The lack of parking not only reduces the economic value for the commercial or industrial user or the possible reuser of these properties, but also negatively impacts the surrounding residential neighborhoods through increased traffic, noise, and reduced parking. The Agency is proposing the implementation of a parking improvement program that wll i include both the rehabilitation and new construction of parking improvements in order mitigate the inadequate parking distribution within the Project Area. Incompatible Adjacent Uses Section 33031(a)(3) of the CRL states that adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels, or other portions of the Project Area is a condition that causes blight. These incompatible uses hinder the economic development of the area by causing a reduction in the proper utilization of the parcel. The majority of the light industrial and heavy commercial uses in the Project Area are located adjacent to residential neighborhoods. In addition, Walnut Unified is located in the heart of the industrial area in the City. The results of the field survey indicate that of the 361 parcels in the Project Area, 30 properties, or 13 percent, were noted during the field survey as incompatible to adjoining or nearby uses, including Walnut Elementary and the residential uses in the Project Area. More specifically, those properties designated as incompatible uses were generally located within the area bounded by Lemon Avenue to the west, City limits to the north, Brea Canyon Road to the east, and the 60 Freeway to the south. Industrial uses surrounding Walnut Elementary School has resulted in a number of incompatible use problems such as traffic, noise, and potential hazardous materials issues. The large volume of industrial traffic poses significant safety threats to school children traveling to and from school Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-13 Preliminary Report 4AP B-4 �•. •�. WONDBAR --CONOMIC BLIGHTINGAREA lNOMIC ONDITIONS MAP . Property r 2ss Vacancies a dous Materials r More of Above• .mic Blightinga� Jons ao]�' School it Land utility lot a Part of Projed Area I and particularly retail, development in the City, many of these revenue sources are extremely limited. Additionally, the deteriorated condition, the obsolete nature and the design deficiencies of commercial and retail structures in the City, as well as the isolated location of these properties which severely lack much needed freeway visibility, has resulted in the commercial and retail areas of the City becoming virtually obsolete and unable to attract much needed business to the community. These factors have led to abnormally high business vacancies and very low taxable retail sales as Diamond Bar residents travel outside of the City to purchase the majority of their goods and services. Furthermore, assessed values in the commercial areas of the City have experienced significant declines in property values and assessed valuations. Overall, these factors have led to the economic downturn of the City and the community. The existing commercial and retail space has become undesirable to businesses looking to locate in the area and the region and the abundance of large, modern structures which meet the architecture design and space needs of today's retailers. The lack of adequate vacant land with freeway visibility has completely removed any chance the City had to develop uses which the community desires and needs. Diamond Bar is in a slump from which it cannot recover without new stimulus. Given dwindling City revenue sources, and the complete absence of private sector interest, it is virtually impossible to correct the poor historical planning patterns which have devastated the local economy without redevelopment authority. The following discussion describes and documents the economic blighting conditions found to be pervasive within the Project Area. Assessed Property Values When assessed values are increasing at a comparable rate to surrounding areas, such as the City, it is often an indicator of a healthy local economy. Conversely, if assessed values are declining, especially at a rate greater than the remainder of the City, or the City and County as whole, the area's economy is likely to be in a state of decline. In order to examine economic conditions, trends and the overall health of the real estate market in the Project Area, assessed secured property values, ("assessed values") which include land values and building improvements for fiscal years 1993-94 through 1996-97 were analyzed for the Project Area and compared to those for the City and the County of Los Angeles ("County's. When assessed values are increasing at a comparable rate to surrounding areas and the region, it is often an indicator of a healthy local economy. Conversely, if assessed values are declining, especially at a rate greater than the surrounding area and region, the local economy is likely to be in a state of decline. As shown in Table B-2, historical review of assessed secured property values show that secured assessed property values in the Project Area decreased by 11 percent, from $438,205,207 in 1993-94 to $389,802,422 in 1996-97, compared to a three percent increase is assessed valuation City-wide and a two percent decrease County -wide. This significant decrease in assessed property values in the Project Area compared to an increase in the City and the moderate decrease in the County is an indicator that the area's economic condition is weak and investment Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-16 Preliminary Report in the area is impaired. The decline in property values over the past four years is representative of the economic stagnation of the Project Area and a lack of private sector investment and impaired investments. An analysis of the increase or decrease of property values by parcel was also conducted and the results indicate that 32 percent of all parcels in the Project Area have experienced decreases in property values over this same time period. When property values decline or remain constant over an extended period of time, such as during the period reported above, property owners have little incentive to reinvest in their property due to an uncertain return on their investment. Over an extended period of time, lack of investment, including maintenance, contributes to the economic and physical decline of an area and eventually results in significant revenue loss to the City. Table B-2 HISTORICAL SECURED ASSESSED VALUATION - CITY OF DIAMOND BAR AND PROJECT AREA Source: Los Angeles County Auditor Controller and Secured Assessment Roll, 1996-97 Impaired Investments Hazardous Materials Parcels within the Project Area use hazardous materials. Any parcel that contains a hazardous materials user or contains an underground storage tank, whether in use or remaining on the property but no longer in use, presents the potential for hazardous waste contamination. The presence of hazardous material/waste negatively affects potential private investment in the area. This is the result of concerns over the liability surrounding hazardous materials and the difficulty in accurately assessing the extent of damage and the cost of remediation. These same concerns and the difficulty in securing financing may deter future buyers and potential developers. The California State Environmental Protection Agency monitors and reports the location of sites in the State of California which contain contaminated or potentially contaminated hazardous waste sites, leaking underground storage tanks, or sanitary landfills which have evidence of groundwater contamination. The lists of sites are designated by the State Water Resources Control Board, the Integrated Waste Management Board, and the Department of Toxic Substances Control. According to information obtained from the California State Environmental Protection Agency, 6 sites in the Project Area have been identified by the California State Water Rosenow Spevacek Group, Inc. Diamond tsar Redevelopment Agency March, 1997 B-17 Preliminary Report 199495 1995-96 1996-97 1993-9C Area 1993_94 199495 % Change 1995-96 % Change 1996-97 % Change Project Area S 438,205,207 S 441,029,352 0.64%$ 402,960,998 -8.63% S 389,802,422 -3.27% '✓�. City of Diamond Bar S 3,511,333,554 $ 3,585,912,468 2.12% $ 3,607,235,243 0.59% S 3,614,102,620 D.19% 1 County of Los Angeles I S 470,231,027,623 $ 477,292,113,964 1.50% S 466,019,145,670 -2.36% S 461,870,390,291 -0.89% Source: Los Angeles County Auditor Controller and Secured Assessment Roll, 1996-97 Impaired Investments Hazardous Materials Parcels within the Project Area use hazardous materials. Any parcel that contains a hazardous materials user or contains an underground storage tank, whether in use or remaining on the property but no longer in use, presents the potential for hazardous waste contamination. The presence of hazardous material/waste negatively affects potential private investment in the area. This is the result of concerns over the liability surrounding hazardous materials and the difficulty in accurately assessing the extent of damage and the cost of remediation. These same concerns and the difficulty in securing financing may deter future buyers and potential developers. The California State Environmental Protection Agency monitors and reports the location of sites in the State of California which contain contaminated or potentially contaminated hazardous waste sites, leaking underground storage tanks, or sanitary landfills which have evidence of groundwater contamination. The lists of sites are designated by the State Water Resources Control Board, the Integrated Waste Management Board, and the Department of Toxic Substances Control. According to information obtained from the California State Environmental Protection Agency, 6 sites in the Project Area have been identified by the California State Water Rosenow Spevacek Group, Inc. Diamond tsar Redevelopment Agency March, 1997 B-17 Preliminary Report Resources Control Board as sites with leaking underground storage tanks. The largest concentration of these sites are located along Diamond Bar Boulevard with additional sites located along Brea Canyon Road. The businesses in the Project Area which have been designated by the California Environmental Protection Agency include gas stations and auto repair uses. Underground storage tanks, particularly as they become older, become subject to leakage and this leakage can result in soil and groundwater contamination. Before contaminated soil can be excavated, it must also be tested to ensure that excavation of the soil will not release hazardous vapors into the air in quantities that exceed federal and state standards. Another factor in hazardous soil contamination is the mobility of waste. If the waste is fluid, as in the case of substances stored in underground tanks, the movement of the substances can affect other properties and contaminate underground water. The high cost of remediation, particularly if the site is considered for a different land use (than its current one), makes the private development of these sites costly and problematic. In some cases, cleanup may require state and/or local toxic remediation funding. Site preparation, assistance in mitigating hazardous material storage or remediation (if necessary) are components of the proposed commercial/industrial rehabilitation program proposed to address hazardous materials problems which hinder economic development in the Project Area. Declining Retail Sales Tax Revenues Stagnation or decline in sales tax revenues is an important indicator of impaired investments. The majority of the commercial businesses in the City are located within the boundaries of the Project Area. Considering the high traffic volumes along major thoroughfares in the City, including Diamond Bar Boulevard and Grand Avenue, as well as the Route 57 and 60 Freeways which intersect at the City, the businesses in the area should be successful, if not thriving. However, the businesses along the commercial corridors have not been successful in capturing business in proportion to the level of traffic flows, as evidenced by the taxable retail sales information for the City reported by the California State Board of Equalization. Taxable retail sales per capita in the City in 1994 was $3,023, which is among the lowest in the San Gabriel Valley region. In contrast, the retail sales per capita in surrounding cities, such as Brea, Chino and West Covina were $16,646, $6,895, and $6,722, respectively, representing per capita taxable sales that are approximately 100 percent to 500 percent higher (Table B-3). Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-18 Preliminary Report Table B-3 DIAMOND BAR AND SURROUNDING COMMUNITIES TAXABLE RETAIL STORE SALES 1991 TO 1994 PER CAPITA SALES Year 1991 1992 1992 % Change 1993 1993 % Change 1994 1994 % Change % Total Change from 1991 to 1994 biamond.Bar $3,176 $3,092 -2 bd°la $4945 -4.75%0 $3;023 Brea $14,981 $15,490 3.40% $15,533 0.28% $16,646 7.17% 11.11% Chino $5,835 55,884 0.84% $5,930 0.78% $6,895 16.27%18.17% Chino Hills N/A N/A N/A $1,783 N/A $1,683 -5.61% N/A Industry $1,255,532 $1,303,095 3.79% $1,432,886 9.96% $1,555,339 8.55% 23.88% La Puente $3,108 $3,033 -2.41% $3,013 -0.66% $3,228 7.14% 3.86% Pomona $3,611 $3,541 -1.94% $3,429 -3.16% $3,371 -1.69% -6.65% Walnut $1,687 $1,922 13.93% $1,706 -11.24% $1,701 -0.29% 0.83% West Covina $6,632 $6,575 -0.86% $6,389 -2.83% $6,722 5.21% 136% LA County Total Sales $5,377 $5,332 -0.84% $5,169 -3.06% $5,394 4.35% 032% Source: California State Board of Equalization, Department of Finance, ERA Information contained in the Economic Study prepared by ERA also identifies significant retail leakage problems. The commercial market analysis included in these studies indicates that that many of the existing retail businesses in the City are performing below standard with regard to sales. The Economic Study cites residents purchasing goods and services outside of Diamond Bar as the cause for the leakage. The Economic Study also states that the deficiency of desirable retail opportunities results from the lack of private sector investment or interest in the obsolescent existing, retail centers in the City which lack adequate freeway visibility. The large number of well-developed retail centers in surrounding cities such as Industry, Brea, and Chino and the City's lack of larger commercial uses other than neighborhood serving businesses is also cited as the cause for this leakage problem. It is also important to note that the Economic Study projects that retail sales tax leakage will continue for years to come. The significant retail sales tax leakage problem is also illustrated by a consumer preferences survey of residence in Diamond Bar by PRS, conducted in December 1995, in which 400 Diamond Bar residents were surveyed. The results of the survey are pertinent in the understanding of the cause of retail sales leakage as goods and services are purchased outside of Diamond Bar. The results of this survey are listed below. • Convenience is rated the most important consideration for shopping for goods and services; • Only 9 percent of respondents cited availability as a reason to shop in Diamond Bar; Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-19 Preliminary Report • 11 percent of respondents purchased items at a grocery store or neighborhood market outside of Diamond Bar; • 70 percent of respondents purchased retail merchandise at department stores outside of Diamond Bar (Graph B-1); • 57 percent of respondents cited availability for the reason for purchasing retail merchandise outside of Diamond Bar; • Nearly 30 percent of respondents complete service related needs (e.g., banking, medical, postal, automotive) outside of Diamond Bar; • 61 percent of respondents shop at membership warehouses such as Price Club, Costco or Sams Club, once a month or more (Graph B-2); • 71 percent of respondents would likely frequent a business which offers bulk items which are sold at a discount; • Nearly 40 percent of respondents believe that Diamond Bar merchants need to offer more parking space to their customers (Graph B-3); • Nearly 25 percent of respondents feel that the shopping areas in Diamond Bar do not provide an attractive environment in which to shop. The top two categories which were cited as needed in the City of Diamond Bar were a department store/mall and a wider variety of items; • Of the 14 responses which were given by residents when asked "what do you feel should be done to improve retail business in Diamond Bar", the majority of respondents suggested bringing department stores and a wider variety of items to Diamond Bar. [Note: The sixth most popular response was improve appearance/services of stores in Diamond Bar.] (Graph B-4). The results of this survey indicate that first and foremost, Diamond Bar residents view significant deficiencies in the total number and types of businesses which they desire in the community. The respondents overwhelmingly indicate that residents shop outside of Diamond Bar for all goods and services with the exception of convenience items, and as the results above show, a large proportion even purchase convenience items outside of the City. It appears that Diamond Bar businesses do not offer the types of good and services which are desired by residents and therefore residents will travel outside of the City to purchase these items. Finally, it appears that residents believe that existing retail centers require improvements or upgrades. Collectively, all of these factors have had the affect of reducing retail sales taxes to the City to critically low levels, at a time when the City faces fiscal crisis. Rosenow Spevaeek Group, Inc. Diamond Dar Redevelopment AgencY March, 1997 B-20 Preliminary Report C 5 0 CD .y O CII N m m � O C H E r cc t6 ° d CL N c m � E 4) T C «L+ U) Uca L L O N � N N Z U � U m O Qa 3 N � Y i N O m H � C W CO E U m t C ° Q c m � E 4) T C «L+ U) Uca L L O N � N N Z U � U m O Qa N a LIIC E x y 0, �Go CD N V C Lel L c O E cc&0 O N U r Eo N V C 0 N r N O F LO L E (D U O 0 L cc m ci � C C O � 0 � w L O N U � L O ` t R w d O N T O N � V 7 w R ¢a M MM1 hal a L s O N d V R CL N v► C CL m L CO G L F O 0 d � C E s L m E L M� W .Q O E cc i1 Ll Q M 0 N N ett H c E s;uopuodsaa }o 96ctusw8d nol Luo0/uoluldo ON u41oN 410 uejnelsai ajolry )o,d ,aewl way, to Apuen JapiM )rAw oyleu anoidwi ino4 papuayxe/slel JGWO salols o soowas/aoueieadde anoidwl ;anbwoq/sdo4s /lllopeds ajoIN sAuemo sseumnq io; sayluaoul aJoy4 6uwsManpe leool 8Joy4 pew/ajols luawpedap a spaeN a� co F— Finally, the results of the field survey, as well as the survey of the City's real estate brokers (described in detail in the next section), support these conclusions. The large number of well developed "power centers" and discount oriented retailers located in surrounding cities (many within a fifteen minute drive from central Diamond Bar) have resulted in Diamond Bar becoming uncompetitive in the region. In addition, the large number of these centers has also contributed to the undesirability of the retail stock in the City, as the majority of the retail properties in the City lack freeway visibility, which is often a required amenity for prospective business tenants. The overall lack of competitiveness of retail properties has directly resulted in the high number of business vacancies. As the number of businesses in the City declines, as small businesses fail or as successful businesses relocate to more successful retail centers outside the City, retail sales tax revenues decline significantly. The majority of the commercial and retail businesses located in the Project Area are small retailers such as fast food restaurants, offices, and other neighborhood serving commercial uses. These businesses are not typically high end or high sales retailers and are very vulnerable to fluctuations in the economy. Shopping centers in the Project Area, such as the Country Hills Town Center and Golden Springs Plaza currently have a significant amount of vacant commercial space. This suggests that retail space located adjacent to the 60 Freeway or newly constructed retail space with ample parking within the Project Area is difficult to lease. High Business Vacancies High vacancy rates or high turnover rates in businesses provide an indication of the presence of economic blight. A vacancy survey was conducted in June, 1996 as part of the field survey to determine the vacant parcels, buildings, and tenant spaces within the Project Area. In addition to identifying vacancies during the field survey, the names and phone numbers of real estate brokers representing the vacant buildings and/or tenant spaces were noted. These brokers were interviewed regarding the size of the vacant buildings or tenant spaces, as well as how long the property had been vacant. The results of the field survey, interviews with local real estate agents, and information obtained from ERA indicate that of the 229 buildings in the Project Area, a total of 61 buildings, or 27 percent of all buildings, as well as over 150 tenant spaces are partially or 100 percent vacant. Of these 61 buildings, 12 are commercial office, 17 are light industrial, and 32 are commercial retail. Photographs 45 through 60 depict vacancies throughout the Project Area. Photographs 58 and 59, in particular, show a retail commercial center on Golden Springs Drive and Lemon Street which is over 40 percent vacant. The lack of success of this center, and the continued vacancy is problematic considering the close proximity of this center to the 60 Freeway. According to a number of local real estate agents surveyed, the vacancy problem in the City as a whole stems from the abundance of available, more modern commercial and retail space in surrounding cities. As mentioned previously, the regional transition to power centers is perceived to be the direction or evolution of commercial retail in the San Gabriel Valley as well as Southern California. Information in the Retail Retention Plan supports the occurrence of this trend as it sites the property owners of the Diamond Bar Town Center Shopping Center, located on the northwest corner of Diamond Bar Boulevard and Grand Avenue, as stating that "the majority of leasing activity is mostly with big anchors going into new power centers". This Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-21 Preliminary Report property owner also added that "national and regional chains have been slow to come for forward" and that Diamond Bar Town Center was "24 percent vacant" in 1995. As of December 1996, Diamond Bar Town Center location continues to have a high vacancy rate of between 30 to 38 percent. Due to the fact that there are a number of well developed retail centers within a fifteen minute drive of central Diamond Bar, the City has encountered great difficulty in attracting larger retail businesses. The composition and quality of the existing retail stock further exacerbates this problem as very few of the retail centers in the Project Area contain large enough structures to house a "large" retailer or a value oriented discount retailers. These types of businesses, including Walmart, Circuit City, and IKEA have had a well documented negative impact upon smaller businesses throughout the southern California region, as well as the entire country. One of the real estate brokers surveyed indicated that developments in such cities as Montclair, Brea, La Puente, and Chino, not only draw Diamond Bar residents out of the City to purchase goods and services, but also inhibits other national retailers to add additional locations in the area. Professional office buildings are also experiencing high vacancy rates. Information provided in the Economic Study prepared by ERA also indicates high vacancies in the Project Area. The largest concentration of commercial office space in the Project Area is located in the Gateway Center, which currently has a 20 to 40 percent vacancy rate. Cities such as Industry, Walnut, Pomona, and Brea which have utilized the tools of redevelopment to draw development to their cities have been successful attracting larger retailers. Other factors leading to the location of national retailers in these cities include name recognition, close proximity to a regional mall, and a large commercial and industrial base within these cities. The success of the surrounding cities, combined with recent changes in shopping preferences, have resulted in the City being designated as an uncompetitive area for the attraction of retail users. Absent redevelopment, the City has previously struggled to find available resources to improve physical and economic conditions and has, therefore, been at a disadvantage in comparison to neighboring cities. A High Crime Rate that Constitutes a Serious Threat to the Public Safety and Welfare According to the Community Redevelopment Law, "a high crime rate that constitutes a serious threat to the public safety and welfare" constitutes a condition of economic blight. In order to assess the impact of crime within the Project Area, information regarding the incidences of violent and other serious crimes reported by the Walnut Station of the Los Angeles County Sheriff's Department for the City was analyzed. As shown on Table B-4, information obtained from the Sheriffs Department indicates that from 1994 to 1995, the occurrence of residential burglary, vehicle burglary, misdemeanor assaults, and petty theft increased by 10 percent to 23 percent. These types of crimes can be potential safety threats, negatively impact existing businesses in the Project Area, and may discourage business investment and patronage in the area. Crime represents an additional cost in conducting business and owning property in and around the Project Area. These additional costs act as a deterrent to retaining existing businesses, as well as Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-22 Preliminary Report attracting new businesses to the Project Area. Crimes such as vehicle burglary assault and petty theft not only affect business owners and tenants, but also discourage patronage of the Project Area. Businesses located in areas perceived to have a crime problem suffer from increased insurance and other costs as a result of stolen merchandise. Increases in crime rates may also increase negatively influence property values in an area by diminishing the area's desirability. Given the location options within the competitive market area and the potential threat to personal safety and property, crime presents a threat to the economic viability of the Project Area. The results of the survey of consumer preferences conducted by PRS, indicate that 21 percent of the 400 Diamond Bar residents surveyed are "worried" about safety and security when shopping in Diamond Bar. Additionally, 79 percent of those surveyed are concerned about security issues/crime in general regarding shopping in Diamond Bar. TABLE B-4 DIAMOND BAR REDEVELOPMENT AGENCY Comparison of Reported Crimes 1994 to 1995 Property Crime 1994 1995 Difference % Increase Vehicle Burglary 273 299 26 10% Misdemeanor Assaults 66 81 15 23% Petty Theft 219 249 30 14% Also detrimental to property values is the presence of graffiti. Photographs 61 and 62 show examples of graffiti in the Project Area. Graffiti affects the condition of a property and adds an extra cost and concern to doing business in communities where it is prevalent. The City operates a graffiti program through the Community Services Department to combat graffiti; however, graffiti continues to persist in the Project Area and other areas of the City. According to the Community Services Director, resources utilized for graffiti removal between July 1, 1995 and June 30, 1996 include $31,000. The City currently allocates $35,000 per year for graffiti abatement. Aside from the cost and effort of removal, graffiti can also be a detriment to investment and reinvestment, since it is often a sign of gang activity -- a hazard businesses and residents avoid whenever possible. These types of crimes can be significant safety threats, negatively impact existing businesses in the Project Area and may discourage business investment and patronage in the area. Crime represents additional costs to conducting business and owning property in and around the Project Area. These additional costs act as a deterrent to retaining existing businesses as well as attracting new businesses to the Project Area. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 B-23 Preliminary Report Inadequate Public Infrastructure/Improvements/Facilities Section 33030(c) of the CRL states that in addition to the blighting conditions defined in Section 33031, a blighted area may also be "characterized by the existence of inadequate public improvements, parking facilities, or utilities." The proposed Project Area contains several deficiencies in the public infrastructure system that contribute to the stagnation of the area's development and limit the use and reuse of existing commercial and industrial structures. The combination of the infrastructure deficiencies and physical and economic blighting characteristics exceed what can be expected to be remedied by the private sector or governmental action acting alone. The following is a general discussion of the types of public improvement deficiencies that are present in the Project Area and how these conditions impact existing businesses and limit development potential. One of the assets of many of the properties in the Project Area are related to the close proximity to the Route 57 and 60 Freeways. As previously noted, the potential for freeway visibility is one of the characteristics of the Project Area, which, if taken advantage of, will facilitate its redevelopment. However, traffic and circulation deficiencies will need to be addressed. Beyond the physical and economic conditions affecting properties in the Project Area, nearly all of the major intersections experience considerable congestion. These intersections include Diamond Bar Boulevard/Brea Canyon Road, Diamond Bar Boulevard/Pathfinder Road, Diamond Bar Boulevard/Grand Avenue (depicted in photograph 65), Pathfinder Road/southbound 57 Freeway ramps, Golden Springs Drive -Colima Road/Brea Canyon Road, Golden Springs Drive/Grand Avenue, Golden Springs Drive/Diamond Bar Boulevard, the west side of 57 north of Pathfinder/Sandstone Canyon, and Brea Canyon Road/westbound 60 Freeway ramps. A traffic study conducted by DKS and Associates states that the congestion in these areas is a result of commuters utilizing local streets as "short-cuts" to avoid freeway traffic. In addition, the Lycoming Street/Lemon Avenue intersection which experiences high volumes of traffic from the Walnut Elementary School and adjacent industrial properties, is not signalized, causing traffic congestion. Major arterials, such as Diamond Bar Boulevard, Grand Avenue, and Golden Springs Drive handle much of the traffic flow in and around the Project Area. These arterials are inadequate to serve the current flow of traffic with the commuter traffic traveling through the area to by-pass freeway congestion. Circulation problems jeopardize the economic success of this area. Individuals may seek alternative shopping and business locations in the event that major arterials become unreasonably congested. Due to the fact that the majority of the properties in the Project Area are commercial and retail uses, these businesses are dependent on a pleasant and attractive environment to encourage business patronage. Existing landscaping, streetscaping, and public facilities (including parks) are in need of upgrading or expanding to provide a pedestrian -friendly environment that encourages business patronage and new private sector investment. Improvements such as (1) retaining walls, landscaping, street realignment, street reconfiguration; (2) handicap access improvements; and (3) landscaping and upgrading of community parks will enhance commercial and community areas to attract visitors to the Project Area. Rosenow Spevacek Group, Ina Diamond Bar Redevelopment Agency March, 1997 B-24 Preliminary Report The Project Area experiences parking deficiencies due to a poor distribution of parking facilities and spaces, and the existence of properties with limited on -street parking. Parking enhancement and improvements would ensure sufficient and convenient parking. Parking needs to be available and easily accessible for vehicles and pedestrians to encourage increased economic activity in the Project Area. The inadequacy of these public improvements is a barrier to development in the Project Area and discourages reinvestment in properties. No single property owner can be expected to finance these public improvements which extend beyond the boundaries of the individual properties, nor can one property owner or a small group of property owners be expected to finance improvements that are the result of area -wide deficiencies. SUMMARY The proposed Project Area is characterized by both physical and economic blighting conditions. Many structures within the Project Area suffer from deterioration, defective design and substandard design. Properties in the Project Area suffer from declining property values and impaired investments, high vacancies, disuse because of lots of irregular form and shape for usefulness and development, a prevalence of depreciated values, a declining market, and overall economic maladjustment. All of these conditions may be made worse by increases in crimes against property which not only threaten the public safety and well being of residences and businesses, but discourages patronage in commercial areas of the City. The presence of these physical and economic blighting conditions cause a reduction of, or lack of, proper utilization of the Project Area to such an extent that it constitutes a serious physical and economic burden on the community which has not been and cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. It is essential that redevelopment tools and powers be available to address these problems or they will continue to worsen. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March,1997 B-25 Preliminary Report SECTION C A Determination as to Whether the Project Area is Predominantly Urbanized CRL Section 33344.5(c) requires a description of the Project Area which is sufficiently detailed for a determination as to whether the Project Area is predominantly urbanized. CRL Section 33320.1(b) defines "predominantly urbanized" as not less than 80% of the land in the project area: (1) has been or is developed for urban uses; or (2) is characterized by the existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership; or (3) is an integral part of one or more areas developed for urban uses which are surrounded or substantially surrounded by parcels which have been or are developed for urban uses. Section 33344.5 requires that this Preliminary Report include a description of the following conditions with respect to the Project Area which is sufficiently detailed for a determination on whether the Project Area is predominantly urbanized: (1) The total number of acres within the Project Area. (2) The total number of acres that is characterized by the conditions of blight described in paragraph (4) of Section 33031 of the Redevelopment Law. (3) The total number of acres that is an integral part of an area developed for urban uses. (4) The percent of property within the Project Area that is predominantly urbanized. (5) A map of the Project Area that identifies the property described in items (2) and (3) and the property not developed for an urban use. The Project Area is 1,454 gross acres in size; of the 1,454 gross acres, approximately 1,328 acres (91 percent) developed with urban uses and approximately 126 acres (9 percent) are non - urbanized, undeveloped vacant land. A map of the Project Area which identifies the area developed for urban uses, and those properties not developed for urban uses (non -urbanized, vacant land that is an integral part of an area developed for urban uses), is presented in Map C-1. The Project Area meets all requirements of the CRL necessary to be included in a redevelopment project area. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 C-1 Preliminary Report U z A � a e „ c � a to i s. ar C7 pq ,� > a z A a s z X17 U) dj f�L SECTION D A Preliminary Assessment of the Proposed Method of Financing the Redevelopment of the Project Area, including an Assessment of the Economic Feasibility of the Project and the Reasons for the Provision of Tax Increment The Redevelopment Plan authorizes the Agency to finance redevelopment activities with financial assistance from the City, State of California, Federal government, tax increment funds, interest income, Agency bonds, donations, loans from private financial institutions, the lease or sale of Agency -owned property, or any other available source, public or private. GENERAL FINANCING METHODS AVAILABLE TO THE AGENCY Redevelopment of the Project Area is proposed to be financed with a combination of a variety of resources including: • Financial assistance from the City, State of California, and/or Federal Government; • Tax increment revenue; • Agency bonds or other obligations; • Proceeds from the lease or sale of Agency -owned property; • Participation in development; • Any other legally available source; and • Loans from private financial institutions. Financial Assistance from the City, State, and/or Federal Government These funds shall include loans and advances for planning, construction and operating capital for implementation of the Plan. As available, other funds, such as gas tax funds and Community Development Block Grants, may also be used to pay the costs of project implementation. The Agency and the City will work together to pursue available grants and loans to assist with project implementation. The City or other public agencies may also issue bonds on behalf of the Agency and provide in-kind assistance. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 D-1 Draft Preliminary Report Property Tax Increment Revenue The Agency will use property tax increment revenue as provided for in Section 33670 of the CRL as the primary financing mechanism to implement the Plan. Tax increment revenue may only be used to pay indebtedness incurred by the Agency. Generally, indebtedness includes principal of and interest on loans, moneys advanced, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance, in whole or in part, redevelopment activities. Tax increment revenues from the Project Area are generally distributed in three ways: (1) to the housing fund; (2) to affected taxing entities through statutory payments; and (3) to the redevelopment fund. As required by Section 33334.2 and 33334.3 of the CRL, unless certain findings are made, twenty percent (20%) of Project Area tax increment revenue is deposited into the Agency's Low and Moderate Income Housing Fund ("Housing Fund") for the purposes of improving, expanding, and preserving the supply of affordable housing. Housing Funds may be used by the Agency, among other things, to defray infrastructure costs directly benefiting low and moderate income single and multifamily housing, to purchase and write-down the cost of land, to rehabilitate residential units, to provide assistance for home ownership opportunities for qualified persons and families, and to subsidize mortgage and rental payments. Section 33607.5 of the CRL requires the Agency to make certain payments to taxing entities that receive a portion of the property taxes derived from the Project Area. Over the projected 45 -year period in which the Agency is eligible to collect tax increment, approximately 31 percent of the total tax increment received by the Agency would be paid to affected taxing agencies. After the required allocation of tax increment to the affected taxing entities and the Housing Fund, the remaining tax increment revenues will be deposited into the "Redevelopment Fund," and be used to pay for housing or nonhousing programs, including related bond debt service costs. Redevelopment Fund revenue can also be used to finance the proposed infrastructure and land acquisition efforts within the Project Area. Bonded Debt Under the Plan, the Agency would have the capacity to issue additional bonds and/or notes or other obligations for any of its corporate purposes, on which the principal and interest are payable in whole or in part from tax increment revenue. Historically, bonded debt has been an integral component of an Agency's financing program to eliminate blight in redevelopment project areas. In order to advance the redevelopment of the Project Area, the Agency must be permitted the ability of issuing notes or bonded indebtedness. Financial analysis of the Project Area's Redevelopment Fund and Housing Fund revenue projections indicate a capacity to support bonded indebtedness of at least $60 million. In order to accommodate potential project cost inflation, a total bond limit of $60 million, adjusted annually in accordance with the Los Angeles -Anaheim -Riverside Consumer Price Index (CPI) for all urban consumers (where 1982- 84 equals 100), published by the Bureau of Labor Statistics of the U.S. Department of Labor, has been provided for in the Plan. In the event the CPI ceases to be published, an acceptable replacement index shall be applied. Setting such a bond limit will allow implementation activities to be maximized even in a high cost inflationary economy. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 D-2 Draft Preliminary Report Lease or Sale of Agency -Owned Property If the Agency acquires property within or outside of the Project Area, the revenue generated by selling or leasing such properties may be used to pay the costs of Redevelopment Plan implementation. Participation in Development The Agency, through the adoption of Owner Participation Rules, will encourage and give preference to existing owners and businesses to participate in implementing the Plan. Such participation will typically involve negotiation of an Owner Participation Agreement between the Agency and owner/business. If the agreements with property owners, tenants and/or other developers provide for revenues to be paid or repaid to the Agency, such revenues may be used to pay project costs. Other Available Sources Any other loans, grants or financial assistance from the United States, or any other public or private source will be utilized, as available and appropriate. The Agency will also consider use of the powers provided by Chapter 8 (Redevelopment Construction Loans) of the CRL to provide construction funds for appropriate projects. Where feasible, the Agency may use other types of financing to pay for the costs of public infrastructure, facilities and operations. PROPOSED REDEVELOPMENT ACTIVITIES AND PROJECT RELATED COSTS Proposed Redevelopment project costs consist of $56 million for public projects and improvements, $50 million for a commercial/industrial rehabilitation program, and $80 million for a business expansion and retention program and $10 million for a parking improvements program needed to redevelop the Project Area (Table D-3). Funds for administration must also be provided and have been estimated at 10% of project costs. Because projects will commence construction over the next thirty (30) years, significant cost inflation may occur so some inflation should be anticipated. As previously stated, CRL requires that twenty percent (20%) of all tax increment revenue be set- aside for low and moderate income housing programs unless certain findings are made. Thus, twenty percent (20%) of the total tax increment will be set aside for project costs so this obligation can be met. Section 33607.5 of the CRL requires that the Agency remit statutory payments to affected taxing entities. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 D-3 Draft Preliminary Report ESTIMATED TAX INCREMENT REVENUE AND BONDING CAPACITY Table D-1 presents a preliminary estimate of the tax increment revenue which will be generated from the Project Area over the life of the Plan. In addition to growth anticipated from new development, the projections assume growth factors for the Project Area of two percent (2%) to five percent (5%) annually for secured property and one-quarter of one percent (0.25%) for unsecured property. These factors include provision for rehabilitation, redevelopment, property sales, and the maximum two percent (2%) growth allowed by Proposition 13. Although these rates may be exceeded in some years, these are likely to be the average rates over the next forty- five (45) years. Table D-1 presents the Project Area's projected total tax increment revenue, low/moderate housing revenue, pass-through payments to affected taxing entities and the remaining revenue available to fund implementation projects. Table D-2 is a bonding capacity analysis of the "remaining revenue" or Redevelopment Fund available to fund implementation projects. The bond analysis assumes the following: a. Bonds are issued in years 5, 10, 15, and 20. b. Bond terms of. • 7.00% interest Three 30 -year fully amortized, and one with 25 -year amortization 125% coverage factor The analysis concludes a bonding capacity of approximately $60 million. ASSESSMENT OF THE ECONOMIC FEASIBILITY OF THE PROJECT A list of the currently identified proposed redevelopment projects is presented in Table D-3 of this Preliminary Report. The total proposed project costs to be paid by the Agency are estimated to be approximately $216 million, including administrative costs. In order to adequately assess the economic feasibility of the Project, the total proposed program/project costs have been compared with the tax increment calculations shown on Table D-1. The project feasibility analysis presented on Table D-3 indicates that approximately $495 million of tax increment will be generated by the Project. Of this amount, approximately $99 million is required to be set aside for low and moderate income housing and $166 million must be allocated to the statutory pass-through payments to affected taxing agency pursuant to Section 33607.5 of the CRL. The remaining $230 million will be available to pay for Agency projects, which leaves $14 million of excess revenue. This revenue will provide a hedge against cost inflation which will likely occur during the time frame for implementing projects. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 D-4 Draft Preliminary Report As stated above, Table D-1 indicates that the Housing Fund is projected to receive approximately $106 million over the life of the Plan. The Agency intends to use these funds citywide to improve and expand low and moderate income housing opportunities THE TAX INCREMENT PROJECTIONS USED IN TABLES D-1 AND D-2 ARE SOLELY TO DEMONSTRATE TAX INCREMENT POTENTIAL AND SHOULD NOT BE USED TO SIZE BONDS OR PROJECT ACTUAL FUTURE INCREMENT. Table D-3 below presents a summary of the project costs, tax increment revenues projected to be available, and a finance plan. The finance plan shows that there is estimated to be sufficient revenue to cover costs and, therefore, the project is economically feasible. Table D-3 DIAMOND BAR REDEVELOPMENT AGENCY DIAMOND BAR ECONOMIC REVITALIZATION AREA PROJECT ECONOMIC FEASIBILITY TAX INCREMENT REVENUE AVAILABLE TO SUPPORT NON -HOUSING PROJECTS Total Tax Increment Revenue $494,725,039 Less Low/Moderate Housing Fund Set Aside $98,945,008 Less Mandatory Pass -Through Payments $165,933,124 Total Net Tax Increment to Fund $229,846,907 Non -Housing Projects NON -HOUSING PROJECT/PROGRAM COSTS Public Improvements/Facilities Projects $56,055,000 Commercial/Industrial Rehabilitation Program $50,000,000 Business Expansion and Retention Program $80,000,000 Parking Improvements Program $10,000,000 Subtotal $196,055,000 Administrative Costs @ 10% $19,605,500 Total Non -Housing Project/Program Costs $215,660,500 Net Tax Increment Revenue for Non -Housing Projects $14,186,407 Less Total Non -Housing Project/Program Costs Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 D-5 Draft Preliminary Report rn e N P � e O m� a R b P r W N 00 O ff. 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O M 00 N O O ^ h tl CD ml O ^_ O N tl M M O P V n O eD c P 0 0 m•• r N N d C tl tl h W N PM N EO_ tl m tl P <tl etl h r r h h- 00 m p M N M C M tl l 00 P N = O W P 0 0 0 O N M tt O W P O O � m � w ci ci ci ci ci cS ci c; ci cS 0 o 0 0 0 0 0 LLi7 M r O Ifs •+ n 00 C_ r d n M r N 00 00 P N r e0 O n DD O N p 0 r O O W O OM h a0 O M P O O M K O 40 O[_ M O •% C d r I� 00 M il 7 O N pO0 CI 0^ O V LO r 0 0 M LLS N r 6] pOp r M N O M (� P M CJ M n -• A_ M O O tl W M M Q O N a' N M d H O 00 r O l� P t4 n O M P tl M 00 P O N P P Il) V7 N O n N 00 r 00 M N m O^ ['J �V eD N Gi op O0 t� ni d M P O a0 M n tl P M tl O O O_ M O h O M M ru O M O� ^ O P OD h h 00 00 O N Y N tl O N 00 cIi p a S u N N 6R e o -.R M 1L1 LL'i 1n M IlJ Il'i IA M 10 IIi N N 4'i N C] U O N� .. Y u M P h P O O O O C O OO O O r N N N N N N N N N N M M M M M M M M M M Ov O 0 0 0 O 0 0 ON O ON N N °Oi N °Oi H N� N N 1O.t ��� N N SOI N eOi eO.I �.Oi eOi �.Oi N N r _ N M d [H O n W P 0< C. tl r 00 P N �• N N d N N N N '� O_ M M P Od . 4. PLAN YEAR 211 31 4 5 6 7 81 9'. 10 111 121 13! 141 15 16 17 18 19. 201 21' 22 23 24 25'. 261 27 281 29 30 31 321 33 34 35 36 37 381 39 40 41 42', 431 44 451 TABLE D-2 Diamond Bar Redevelopment Agency Diamond Bar Economic Revitilization Area BONDING CAPACITY (Not to be Used for Financing Purposes) INTEREST RATE @ 7.00% COVERAGE @ 1.25 $11,903,097.32 $13,814,986.90 30 Yr. Bond Issue 30 Yr. Bond Issue Debt Service Debt Service 959,228' 959,228 959,228 959,228 959,228 959,228, 959,228, 959,228, 959,228 959,228 959,228 959,228 959,2281 959,2281 959,228. 959,2281 959,228 959,228. 959,2281 959,228, 959,2281 959,228 959,228 959,228 959,226' 959,228 959,228 959.228 959,228 959,228 1,113,300 1,113,300 1,113,300 1,113,3001 1,113,300 1,113,300, 1,113,300 1,113,3001 1,113,300. 1,113,3001 1,113,300 1,113,3001 1,113,300 1,113,300! 1,113,300 1,113,3001 1,113, 300 1,113,300, 1,113,300 1,113,300' 1,113,300 1,113,300 1,113,300, 1,113,3001 1,113,300 1,113,300 1,113,300 1,113,30011 1,113,3001 1,113,3001 1,113,300 28,776,834 34,512,303 $9,958,717.41 $11,372,442.64 I Total REMAINING 30 Yr. Bond Issue 25 Yr. Bond Issue Debt Service REVENUE Debt Service Debt Service AFTER DEBT SERVICE TOTAL BONDING CAPACITY $58,811,555 0 207,399 0 494,440 0 869,401 (959,228) 239,807 (959,228) 519,602 (959,228) 837,881 (959,228) 1,165,688 (959,228) 1,411,101 (2,072,528) 518,132 (2,072,528) 703,392 (2,072,528) 896,037 (2,072,528) 1,096,364 (2,072,528) 1,304,680 802,537 (2,875,065) 718,766 802,537 (2,875,065) 944,030 802,537' (2,875,065) 1,178,280 802,537 (2,875,065) 1,421,875 802,537' (2,875,065) 1,675,189 802,537 975,875 (3,85D,940) 962,735 802,537' 975,875 (3,850,940) 1,304,985 802,537 975,8751 (3,850,940) 1,664,316 802,537 975,875 (3,850,940) 2,041,581 802,537 975,875 (3,850,940) 2,437,678 802,537' 975,875 (3,850,940) 2,853,548 802,537 975,875 (3,850,940) 3,290,179 802,537' 975,675 (3,850,940) 3,748,610 802,537 975,875, (3,850,940) 4,229,930 802,537 975,875' (3,850,940) 4,735,284 802,537 975,875 (3,850,940) 5,265,873 802,537 975,875 (3,850,940) 5,732,258 802,537 975,875 (3,850,940) 6,221,934 802,537' 975,875 (3,850,940) 6,736,066 802,537 975,875 (3,850.940) 7,275,878 802,537 975,875 (2,891,713) 8,801,881 802,537 975,875 (2,891,713) 9,396,968 802,537, 975,875 (2,891,713) 10,021,781 802,537, 975,875 (2,891,713) 10,677,807 802,5371 975,875 (2,891,713) 11,366,607 802.537 975,8751 (2,891,713) 12,089,819 802,537 975,8751 (1,778.412) 13,962,464 802,537 975,875', (1,778,412) 14,759,748 802,5371 975,875 (1,778,412) 15,596,869 802,5371 975,875 (1,778,412) 16,475,817 802,5371 975,875 (1,778,412) 17,398,685 24,878,654 25,372,755 (113,540,546) 215,251,369 REASONS FOR THE PROVISION OF INCREMENT REVENUE The provision of tax increment revenue must be included in the Redevelopment Plan because other sources are not available or are insufficient to finance the costs of redevelopment of the Project Area. Utilization of tax increment financing for this Project will provide the resources to develop a consistent and directed approach to activities and programs needed to eliminate blight, provide for the improvement of infrastructure, and aid in the expansion of the Project Area's economic base. It is commonly agreed that when adverse conditions are not addressed, the resulting physical and financial impacts imposed by these conditions will exacerbate the existing blighting conditions. It will cause serious economic hardships and undue disruption of the lives and activities of people working in the Project Area and the City. Since both federal and state governments are under extreme budgetary shortfalls, it is extremely clear that federal and state assistance in providing funding for necessary public infrastructure improvements and facilities cannot be reasonably expected. The City does not currently have or expect to have the available financial resources to fund the magnitude of improvements necessary to reverse the adverse conditions present in the Project Area. Other financing programs available to the City, such as assessment districts, may not be workable for the type and amount of improvements required. Assessment districts could impose such detrimental financial burdens that area businesses and potential developers would be unable to bear such costs. As indicated by the blighting conditions which can be found throughout the Project Area, property owners do not have the resources to maintain their properties, much less rehabilitate them. In instances where reparcelization needs to occur, the Agency's powers and financing will be necessary. Therefore, it cannot be reasonably expected that private enterprise acting alone would have the means to accomplish redevelopment of the Project Area. Without the provision of tax increment revenue financing, sufficient revenue would not be available to fund the needed programs and improvements. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 D-6 Draft Preliminary Report SECTION E A Description of How the Proposed Projects to be Pursued by the Agency Will Improve or Alleviate Physical and Economic Blighting Conditions in the Project Area The Agency will encourage the following proposed projects in order to alleviate and prevent the reoccurrence of blight in the Project Area. The Agency proposes to implement redevelopment activities envisioned in the Redevelopment Plan through commercial and industrial revitalization activities. Public Improvements and Facilities Program The Agency has identified a number of public improvements and facilities projects which would eliminate deficiencies in the existing infrastructure system. Through public investment in infrastructure system improvements, the Agency hopes to stimulate private sector activity in the Project Area. The Agency's identified list of public improvements and facilities and respective costs are summarized on Table E-1. They generally include: 1) streetscape improvements (i.e., street lighting, landscaping, and sidewalks); 2) circulation improvements (i.e., the intersection modification to major arterials, the installation of additional lanes, and traffic signals); 3) drainage improvements; and 4) public facilities improvements (i.e., park improvements and facilities). The costs associated with these projects represent a proportionate share of the overall cost that may be funded by redevelopment. Proposed public improvements projects such as intersection modifications and the construction of turn lanes will correct the awkward alignment, varying street widths, and complicated traffic patterns into and out of the commercial areas of the City, primarily along Brea Canyon Road, Golden Springs Drive, and Pathfinder Road. The addition of left -turn lanes will alleviate current safety hazards and congestion as well as improve access to these and commercial areas. The inadequate access to these areas discourages visitors from patronizing commercial and retail businesses in the Project Area and hinders economic development opportunities. In addition, the installation of traffic signals along major arterials in the Project Area, such as Diamond Bar Boulevard, Brea Canyon Road, and the 57 Freeway off -ramps on Diamond Bar Boulevard and Sunset Crossing, will relieve further traffic congestion in the Project Area. Streetscape improvements will improve the overall quality of the physical environment and encourage private sector investment. By implementing this and other types of projects to address the blighting conditions affecting the Project Area, the public sector will signal its confidence in the area and will provide a springboard for private investment and reinvestment. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 E-1 Preliminary Report Parking Improvements Program The Agency proposes the implementation of a Parking Improvements Program that includes both rehabilitation and new construction components in order to mitigate the inadequate parking distribution within the Project Area. The parking improvements listed on Table E-1 will mitigate economic dislocation resulting from high vacancies as these properties will become more attractive to potential businesses for lease or purchase, particularly in existing retail shopping centers and industrial areas along the primary commercial and industrial corridors of the City. This program may include, but is not limited to, the acquisition of structures in the Project Area to increase parking facilities or the acquisition of remnant parcels remaining after the construction of the 57 and 60 Freeways. Commercial/Industrial Rehabilitation Program Commercial/Industrial Rehabilitation Program will provide assistance, in the forms of low interest loans and grants, to businesses in the Project Area to encourage and assist in restoring, modernizing, and improving commercial and industrial structures. Property acquisition will be used in some cases as a means of restoring and/or recycling buildings and structures suffering from a variety of physical blighting conditions. The primary goal of this program is to enhance the appearance, visibility, and economic viability of existing shopping areas and industrial structures. Projects proposed for first -generation retail centers in the Project Area include commercial rehabilitation, architectural facade enhancement, and the acquisition and redevelopment of vacant properties and structures and properties which require hazardous materials remediation, parking facilities, streetscape improvements, and circulation improvements. Additionally, this program will include the rehabilitation and enhancement of deteriorated -obsolete industrial buildings in the Project Area. This component of the program is intended to improve the physical appearance, the structural integrity and the economic viability of the structures which will have the effect of alleviating or eliminating physical blighting conditions including deterioration, defective design, and substandard design. In addition, the rehabilitation and modernizing of the building stock in this area will also have the effect of reversing economic blighting conditions including impaired investments and high vacancies. A sign replacement program will also be initiated as part of this program to assist property owners and businesses to assist in the replacement of deteriorated signs and/or signs which do not meet current city code standards. In an attempt to preserve and magnify the unique character of the area, the Agency proposes that through the rehabilitation of commercial structures, the attractive architectural components of the area are replicated. The rehabilitation of commercial and industrial structures will be achieved by assisting property owners with renovations to buildings or acquisition and rehabilitation of property. In addition, the revitalization of this area will include, as mentioned above, streetscape improvements, street furniture and street lighting, street reconstruction, and signage identifying the area. The primary focus of this program is to transform the commercial corridors of the City into economically viable, shopping districts. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 E-2 Preliminary Report Overall, these improvements are intended to upgrade the commercial and industrial area of the City in order to enhance the ability of these structures to compete with new commercial and industrial facilities in the surrounding area and attract additional businesses to purchase or lease structures in the Project Area. This component is directed at alleviating deterioration, defective design, substandard design, and impaired investments. Business Expansion and Retention Program In order to support the commercial and economic programs, the Agency proposes a proactive Business Expansion and Retention Program that would encourage new businesses to locate within the boundaries of the Project Area and assist in the retention of existing businesses. In recent years, the City has experienced significant retail sales tax leakage and one of the highest commercial and retail vacancy rates of any city in the Orange County and San Gabriel Valley regions. Cities surrounding Diamond Bar, including Industry, Pomona, Brea, and Chino have successfully implemented redevelopment projects which have enabled these cities to attract economically viable businesses. These projects have had a negative indirect impact to the City of Diamond Bar as these other areas have an abundance of commercial and industrial space with desirable amenities and adequate parking. The City is currently at a disadvantage as the existing building stock, as well as the lack of adequate infrastructure, has acted as a barrier to economic stability. Low and Moderate Income Housing Program The Agency is required to set aside not less than 20 percent of the tax increment revenue generated by the Project into a special Low and Moderate Income Housing Fund. These funds are to be used to increase, improve and preserve the supply of low and moderate income housing in the community. The Agency's housing program may include one or more of the following components: 1) residential rehabilitation loan program; 2) residential rehabilitation grant program; 3) residential acquisition and rehabilitation program; 4) property acquisition assistance for qualified home buyers, such as a first-time home buyers program; 5) residential loan assistance; and 6) assistance in the construction of new residential dwelling units. This program will assist very low, low and moderate income persons to not only rehabilitate and maintain existing property in order to alleviate existing physical conditions such as deterioration, but may also provide relocation assistance for residential properties in the Project Area affected by incompatible uses. In addition, the Agency may provide affordable housing opportunities to prospective qualified home buyers. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 E-3 Preliminary Report TABLE E-1 DIAMOND BAR ECONOMIC REVITALIZATION AREA PUBLIC FACILITIES / INFRASTRUCTURE IMPROVEMENT PROJECTS LOCATION / PROJECT DESCRIPTION Streetscape Improvements COST Diamond Bar B1, at north City limits 350,000 Diamond Bar Bl, btw Highland Valley & Sunset Crossing - streetscape 2,300,000 Diamond Bar Bl, at Sunset Crossing - intersection treatment 350,000 Diamond Bar Bl, btw Gentle Springs & Golden Springs - streetscape 1,500,000 Diamond Bar Bl, at Goldrush / frontage road (west side) - streetscape 90,000 Diamond Bar Bl, btw Clear Creek Canyon & Mountain Laurel - streetscape 3,000,000 Diamond Bar Bl, at Grand Av - streetscape, landscape, intersection treatment 650,000 Diamond Bar Bl, at Mountain Laurel / frontage road (west side) - streetscape 75,000 Diamond Bar Bl, btw Fountain Springs & Cold Springs - streetscape, landscape 1,500,000 Diamond Bar Bl, btw Crooked Creek & Brea Canyon Rd - streetscape, landscape 1,500,000 Brea Canyon Rd, btw north & south City limits - parkway improvements 1,000,000 Brea Canyon Rd, at north City limits - streetscape, entry statement 50,000 Brea Canyon Rd, at Gemdale - ditch / drainage improvements 200,000 Brea Canyon Rd, at Pathfinder Rd - streetscape 350,000 Brea Canyon Rd, at south City limits - streetscape, entry statement 350,000 Lemon Av, at Lycoming - entry statement 350,000 Lemon Av, north of Golden Springs Dr - median 200,000 Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 E-4 Preliminary Report LOCATION / PROJECT DESCRIPTION COST Streetscape Improvements, continued Golden Springs Dr, at west City limits 350,000 Golden Springs Dr, at Lemon - streetscape 350,000 Golden Springs Dr, btw Lemon & Gona Ct - median 250,000 Golden Springs Dr, at Brea Canyon Rd - streetscape, landscape, intersection treatment 650,000 Golden Springs Dr, at Adel - landscape 50,000 Golden Springs Dr, btw Gateway Center & Copley - streetscape, sidewalks 500,000 Golden Springs Dr, at Grand Av - streetscape, landscape. intersection treatment 650,000 Golden Springs Dr, along Diamond Bar Golf Course - parkway improvements 150,000 Golden Springs Dr, btw Prospectors & Torito - streetscape, intersection treatment 1,500,000 Golden Springs Dr, at Rancheria / frontage road (south side) - streetscape 60,000 Golden Springs Dr, btw Platina & El Encino / frontage road (north side) - streetscape 120,000 Golden Springs Dr, at Ballena / frontage road (south side) - streetscape 50,000 Grand Av, at west City limits - streetscape, landscape, entry statement 450,000 Grand Av, along Diamond Bar Golf Course - parkway improvements 65,000 Grand Av, at Golden Springs - streetscape, landscape, intersection treatment 650,000 Grand Av, at 800 S. Grand - streetscape 250,000 Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 E-5 Preliminary Report LOCATION / PROJECT DESCRIPTION COST Streetscape Improvements, continued Grand Av, btw Summit Ridge & Longview - streetscape, landscape 1,500,000 Grand Av, at east City limits - streetscape, landscape, entry statement 350,000 Pathfinder Rd, at west City limits - entry statement 300,000 Pathfinder Rd, btw west City limits and Diamond Bar Bl - median 500,000 Pathfinder Rd, at Evergreen Springs / frontage road - streetscape 50,000 Walnut Dr, at west City limits - entry statement 250,000 and other similar improvements which may be of benefit to the Diamond Bar Economic Revitalization Area. TOTAL S 22,860,000 Signalization Improvements Route 57 Fwy, NB on-ramp at Diamond Bar Bl / Sunset Crossing - signalization 20,000 Route 57 Fwy, SB off -ramp at Sunset Crossing - signalization 125,000 Diamond Bar Bl, at Highland Valley - left -turn signal 50,000 Diamond Bar Bl, at Sunset Crossing - left -turn signal 50,000 Diamond Bar Bl, at Gentle Springs - left -turn signal 50,000 Diamond Bar Bl, at K -Mart entrance - left turn signal 50,000 Diamond Bar Bl, at Golden Springs Dr - signal modification 350,000 Diamond Bar Bl, at Tin / Highcrest - signalization 130,000 Diamond Bar Bl, at Goldrush - left -tum signal 50,000 Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 E-6 Preliminary Report LOCATION / PROJECT DESCRIPTION COST Siffnalization Imurovements, continued Diamond Bar Bl, at Steep Canyon - signalization 130,000 Diamond Bar Bl, at Clear Creek Canyon - signalization 130,000 Diamond Bar Bl, at Ralph's / Pic 'N' Save intersection - signalization 130,000 Diamond Bar Bl, at Montefino - signalization 130,000 Diamond Bar Bl, at Quail Summit - signalization 130,000 Diamond Bar Bl, at Maple Hill - signalization 130,000 Diamond Bar Bl, at Acacia Hill - signalization 130,000 Diamond Bar Bl, at Kiowa Crest - left turn signal 50,000 Diamond Bar Bl, at Silver Hawk - signalization 130,000 Diamond Bar Bl, at Morning Canyon - signalization 130,000 Diamond Bar Bl, at Shadow Canyon - protected left turn signal 30,000 Diamond Bar B1, at Fountain Springs - protected left turn signal 50,000 Diamond Bar Bl, at Sugarpine - protected left tum 50,000 Diamond Bar Bl, at Cold Springs - protected left turn 50,000 Diamond Bar Bl, at Crooked Creek - signalization 130,000 Diamond Bar Bl, at Brea Canyon Rd - intersection modification 350,000 Brea Canyon Rd, at Washington - left -turn signal 50,000 Brea Canyon Rd, at Lycoming - left -turn signal 50,000 Brea Canyon Rd, at Golden Springs Dr / Route 60 Fwy - intersection modification 350,000 Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 E-7 Preliminary Report LOCATION / PROJECT DESCRIPTION COST Sisnalization Imarovements, continued Brea Canyon Rd, at Via Sorella / Glenbrook - signalization 250,000 Brea Canyon Rd, at Diamond Crest Estates access - signalization 150,000 Brea Canyon Rd, at South Pointe Middle School access - signalization 200,000 Brea Canyon Rd, at Pathfinder Rd - left turn signal 50,000 Brea Canyon Rd, at Fountain Springs - signalization 130,000 Brea Canyon Rd, at Cold Spring - signalization 130,000 Brea Canyon Rd, at Cool Springs - signalization 130,000 Brea Canyon Rd, at Copper Canyon - signalization 130,000 Brea Canyon Rd, at Silver Bullet - signalization 130,000 Lemon Av, at Lycoming - signalization 130,000 Lemon Av, at Walnut - signalization 130,000 Lemon Av, at Earlgate / WVUSD Education Center - signalization 250,000 Lemon Av, at Golden Springs Dr - left turn signal 50,000 Brea Canyon Cutoff Rd, at Fallow Field - left turn signal 50,000 Brea Canyon Cutoff Rd, at Route 57 Fwy S/B on & off ramps - signalization 130,000 Golden Springs Dr, at Calbourne / Arkley - signalization 250,000 Golden Springs Dr, at Rapid View - signalization 150,000 Golden Springs Dr, at Adel - signalization 150,000 Golden Springs Dr, at Caltrans Yard - signalization 130,000 Golden Springs Dr, at Grand Av - intersection modification 250,000 Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 E-8 Preliminary Report LOCATION / PROJECT DESCRIPTION COST Simalization Improvements, continued Golden Springs Dr, at Raquet Club / Golf Course - signalization 250,000 Golden Springs Dr, at Golden Prados - left -tum signal 50,000 Golden Springs Dr, at Prospectors - left -tum signal 50,000 Golden Springs Dr, at Rancheria - signalization 130,000 Golden Springs Dr, at Plating - signalization 130,000 Golden Springs Dr, at San Leandro - signalization 130,000 Golden Springs Dr, at Ballena - left -turn signal 50,000 Golden Springs Dr, at Carpio - left -turn signal 50,000 Golden Springs Dr, at Sylvan Glen - signalization 130,000 Golden Springs Dr, at High Knob - signalization 130,000 Grand Av, at apartments / 800 S. Grand - left turn signal 50,000 Grand Av, at Cahill - signalization 150,000 Grand Av, at Cleghorn 150,000 Grand Av, at Country View - signalization 150,000 Grand Av, at Shotgun - left -turn signal 50,000 Pathfinder Rd, at Peaceful Hills - signalization 150,000 Pathfinder Rd, at Evergreen Springs - left turn signal 50,000 Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 E-9 Preliminary Report LOCATION / PROJECT DESCRIPTION Signalization Improvements, continued COST Preparation of a traffic signal system master plan for all streets which $ 50,000 may be of benefit to the Diamond Bar Economic Revitalization Area and other similar improvements which may be of benefit to the Diamond Bar Economic Revitalization Area. TOTAL $ 8,075,000 Circulation Improvements Assistance with extension of Highcrest Dr to Diamond Bar B1 $ 5,000,000 and other similar improvements which may be of benefit to the Diamond Bar Economic Revitalization Area. TOTAL $ 5,000,000 Sewer / Storm Drain Improvements Preparation of a sewer master plan for all property within $ 100,000 the Diamond Bar Economic Revitalization Area Preparation of a storm drain master plan for all property within 100,000 the Diamond Bar Economic Revitalization Area and other similar improvements which may be of benefit to the Diamond Bar Economic Revitalization Area. TOTAL $ 200,000 Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 E-10 Preliminary Report LOCATION 1 PROJECT DESCRIPTION Public Facilities Improvements COST Park development (Site D) - eg. buildings, recreation facilities, ball fields 10,000,000 Summit Ridge Park (expansion) - eg. buildings, recreation facilities, ball fields 5,000,000 Heritage Park (expansion) - eg. parking, community center building 3,300,000 Community Center (expansion) - eg. 3,000 sq. ft. meeting roon 50,000 Sycamore Canyon Park (improvements) - eg. multiuser bandshell/gazebo shell, 100,000 portable replacement, picnic shelter Ronald Regan Park (improvements) - eg. tennis and basketball courts, 20,000 light fixtures replacement Peterson Park (expansion) - eg. parking, lighted tennis and basketball courts 100,000 Larkstone Park (development) 250,000 Corporate Yard - retrofit 100,000 Diamond Bar High School, South Pointe Middle Schooll - 450,000 lighting improvements, tennis and basketball courts, ball fields Diamond Ranch High School, Lorbeer Middle School, 450,000 Chaparrel Middle School - lighting improvements, tennis & basketball courts, ball fields Library (expansion / development) - retrofit 100,000 and other similar improvements which may be of benefit to the Diamond Bar Economic Revitalization Area. TOTAL $ 19,920,000 Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency March, 1997 E-11 Preliminary Report APPENDICES APPENDIX 2 - Photographs of the Study Area DETERIORATION AND DILAPIDATION 1. APN:8706-001-016 2. APN: 8719-012-Z47 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-1 APPENDIX 2 - Photographs of the Study Area APN: 8706-002-021 4. APN: 8706-001-004 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-2 APPENDIX 2 - Photographs of the Study Area APN: 8281-028-030 6. APN: 8285-029-005 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-3 APPENDIX 2 - Photographs of the Study Area APN: 8717-008-033 8281-010-058 Rosenow 5pevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-4 APPENDIX 2 - Photographs of the Study Area APN: 8285-029-001 10. APN: 8717-008-185 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-5 APPENDIX 2 - Photographs of the Study Area 11. APN: 8714-015-025 12. APN: 8763-001-032 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-6 APPENDIX 2 - Photographs of the Study Area 13. APN: 8760-015-030.031 14. APN: 8763-001-034 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-7 4� 1 i0\ � 1- �� `_ , . -.. '� \ � arm �r^.� ." r /�"��'�. y '�. 4`"l@i,, '�� '�.,� APPENDIX 2 - Photographs of the Study Area DEFECTIVE DESIGN - Inadequate Access 17. APN: 8702-001-191 18. APN: 8702-001-191 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-9 APPENDIX 2 - Photographs of the Study Area 19. APN: 8763-001-034 20. APN: 8763-001-034 Roseno:rJ Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-10 gamer;'Ibilk 0 1 - �! I I 21. APN: 8763-004-003 22. APN: 8763-004-003 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-11 APPENDIX 2 - Photographs of the Study Area SUBSTANDARD DESIGN - Outdoor Storage 23. APN: 8760-014-012 24. APN: 8763-006-023 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-12 APPENDIX 2 - Photographs of the Study Area M 31. APN: 8719-010-009 9 32. APN: 8717-008-019 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-16 APPENDIX 2 - Photographs of the Study Area SUBSTANDARD DESIGN - inadequate Loading 33. APN: 8293-044-028 34. APN: 8293-044-028 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-17 APPENDIX 2 - Photographs of the Study Area 35. APN: 8717-008-185 36. APN: 8717-008-185 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-18 APPENDIX 2 - Photographs of the Study INCOMPATIBLE USES 37. APN: 8719-010-007 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-19 APPENDIX 2 - Photographs of the Study Area INADEQUATE PARKING 38. APN: 8765-014-026 39. APN: 8765-014-026 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-20 APPENDIX 2 - Photographs of the Study Area 40. APN: 8760-027-005 41. APN: 8719-020-004 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-21 APPENDIX 2 - Photographs of the Study Area 42. APN: 8293-002-009 43. APN: 8293-002-009 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-22 APPENDIX 2 - Photographs of the Study Area 44. APN: 8760-027-003 45. APN: 8763-001-034 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-23 APPENDIX 2 - Photographs of the Study Area HAZARDOUS MATERIALS 46. APN: 8760-014-012 47. APN: 8281-028-030 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-24 .rEPhotographs t Area 48. APN: 8717-008-019 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-25 APPENDIX 2 - Photographs of the Study Area HIGH VACANCIES 49. APN: 8717-008-039 I J-11 0 50. APN: 8702-001-190 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-26 I Photographs a �j taCMOFON 51. APN: 8717-008-032 { 'tom 4 y. 52. APIA: 8717-008-032 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-27 APPENDIX 2 - Photographs of the Study Area 53. APN: 8293-044-033 54. APN: 8717-008-184 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-28 APPENDIX 2 - Photographs of the Study Area 55. APN: 8702-001-191 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-29 APPENDIX 2 - Photographs of the Study Area 57. APN: 8702-001-192 58. APN: 8702-001-192 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-30 APPENDIX 2 - Photographs of the Study Area 59. APN: 8706-001-001 60. APN: 8285-029-006 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-31 APPENDIX 2 - Photographs of the Study Area 63. APN: 8285-029-006 62. APN: 8762-034-022 Rosenow Spevacek Croup, Inc. City of Diamond Bar January, 1997 Appendix 2-32 - APPENDIX 2 - Photographs of the Study Area CR1M;: - rrnffiti c� e 65, APN: 8706-002-021 66. APN: 8706-002-056 _ City �„ .,� Diamond Bar Rosenow Spevacek Group, Inc. ' ✓ January, 1997 Appendix 2-34 C APPENDIX 2 - Photographs of the Study Area INADEQUATE PUBLIC IMPROVEMENTS 67. APN: 8702-001-191 Rosenow Spevacek Group, Inc. City of Diamond Bar January, 1997 Appendix 2-35 °'17,1`oI °'Io-I c .oI ooI o VIVIVI --'I°,I=I'°I =I I�; I z `-'I"I I -*"i`"I-,�I-jI =I c I o I 0 C>I�;I-I 001`°I=I-,,I w °° low 01 O� Q V V V 00 00 00 a oo N O O O O O O O O O O p O O O r CA fD ' � M ¢ �.s O Mr 't 0 h� "� � Q' ^• � L7 OQ m rA � w m Ir 1%Q C' ,� n i o 19 / fDeD oo ^ O A ft < 0 y y 0 ~ l CD x TA y y J LA eD d ftIm tD o b G � O It. C-4 Cs1 yV � rT M"p Q Gy • l 1 � R 7q b y DJ CC cC C 1 �. 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