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10/17/2000
OCTOBER 17, 2000 PAGE:2 3B. CITY MANAGER REPORTS AND RECOMMENDATIONS:s 4. 4,a 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 Speaker's Card' and give it to the City Clerk (completion of this form is voluntary) There is a`five- minute maximum time limit when addressing the City Council 4.b RESPONSE TO PUBLIC COMMENT: Under the Brown Act, members of the City Council may briefly respond to public comments but no extended discussion and no action on such matters may take place. 5. SCHEDULE OF FUTURE EVENTS: 5.1 DIAMOND BAR COMMUNITY FOUNDATION - October `19,:2000 7:00 p.m., AQMD Room CC-8, 21865 E. Copley Dr. 5.2 CHAMBER OF COMMERCE BUSINESS EXPO - - October 21, 2000 9:00' a.m. to 3:00 p.m., K-Mart Parking Lot, 249 S. Diamond Bar Blvd.' 5.3 PLANNING COMMISSION - October 24, 2000 7:00 p.m., AQMD Auditorium, 21865"E. Copley Dr, 5.4 PARKS & RECREATION COMMISSION - October 26, 2000 7:00 p.m., AQMD Board Hearing Room, 21865 E. Copley Dr. 5.5 "HALL OF HORRORS HAUNTED HOUSE - October 28 30 & 31 - 6:00 - 10:00 p.m. - Heritage Park Community Center, 2900 S. Brea Canyon Rd. 5.6 FALL FUN FESTIVAL October 31, 2000`- 4:30 to 8:30 p.m. Heritage Park, 2900 S Brea Canyon Rd. 5.7 COMMUNITY/SENIOR ;CENTER TASK FORCE MEETING -`November 2, 2000 - 7:00 p.m., AQMD, 21865 E. Copley Dr. 5.8 CITY COUNCIL MEETING - November 7,2000 - 6:30 p.m., AQMD Auditorium, 21865 E. Copley Dr. 5.9 ' ELECTION DAY - November 7, 2000 - Polls open from 7:00 a.m. - 8:00 p.m. 5.10 TRAFFIC & TRANSPORTATION COMMISSION November 9, 2000; OCTOBER 17, 2000 PAGE 4 Requested by; Finance Division 6.7 NOTICE OF COMPLETION FOR TRAFFIC SIGNAL IMPROVEMENTS AT THE INTERSECTION OF BREA CANYON ROAD/DIAMOND CREST LANE, BREA CANYON ROAD/GLENBROOK DRIVE AND BREA CANYON ROAD/GOLDEN SPRINGS DRIVE Council awarded a contract to L.A. Signal in the amount of $227,605 with a contingency amount of $28,500 for project change" orders to be approved by the City Manager, for a total authorization amount of $256,105. The traffic signals at the intersections of Brea Canyon Rd./Diamond Crest Ln. and Brea Canyon Rd./Glenbrook Dr. were operational on September 8, 1999 and January 3 2000, respectively. The traffic signal at the intersection of Brea Canyon Rd./'Golden Spgs. Dr. was completed on September 5, 2000. The final construction contract amount'is $252,353. Recommended Action: It is recommended that the City Council accept the work performed by L.A. Signal and authorize the City Clerk to file the Notice of Completion and release any retention amounts thirty-five days after the date of recordation. Requested by: Public Works Division 6.8 AWARD OF CONTRACT FOR DOCUMENT CONVERSION SERVICES - Since Incorporation in 1989, the City has amassed over 1,100,000 pages of documents, which are stored both at City Hall and in five off-site storage units. In 1995, the City acquired a'document imaging system whereby documents may be scanned into the City's computers and converted to digital format with the images retained permanently on CD-ROM disks." Hard copies of the materials can then be disposed of two years after their placement on CD-ROMs This system can provide instant access by staff, the City Council and the public (via the Internet) to all ;permanent public records under control of the 'City.. To date, staff has input over 2,267 documents into the system, which include all City Council Minutes, Resolutions and Ordinances', the General Plan, the DevelopmentCode Design Guidelines and the Subdivision Ordinance. With ;approximately 1,100,000 pages of materials remaining to be scanned into the system, staff has proposed contracting with an outside vendor. In adoption of the FY 2000-01 budget, the City Council- allocated $94,000 for conversion of engineering drawings and maps as well as building permits. After completing and RFP process, staff recommends award of a contract to Prime Ventures, Inc., dba document Imaging Service Corp. in the amount of $79,,239.09 with 10% contingency in the amount of $7,923. F OCTOBER 17, 2000 PAGE 5 Recommended Action: It is recommended that the City Council award a contract to Prime Ventures, Inc. dba Document Imaging ServiceCorp. in the amount of $79,239.08 for document conversion services for engineering drawings and maps and building permits, with a 10% contingency for contract changes in the amount of $7,923. Requested by: City Clerk's Division 6.9 RESOLUTION NO. 2000 -XX A JOINT RESOLUTION OF THE BOARD OF 'SUPERVISORS OF THE `COUNTY OF LOS ANGELES ACTING IN BEHALF OF LOS ANGELES COUNTY GENERAL FUND, -LOS ANGELES COUNTY LIBRARY, LOS ANGELES COUNTY FLOOD CONTROL, LOS ANGELES COUNTY CONSOLIDATED FIRE PROTECTION DISTRICT, LOS ANGELES COUNTY LIGHTING DISTRICT #10006" DIAMOND BAR, LOS ANGELES `COUNTY FIRE-FFW, THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 21 OF'LOS `ANGELES COUNTY, AND THE GOVERNING BODIES OF CITY OF DIAMOND BAR, GREATER LOS ANGELES COUNTY VECTOR CONTROL DISTRICT, THREE VALLEYS MUNICIPAL WATER DISTRICT, WALNUT VALLEY WATER DISTRICT (WVWD), WVWD-IMPROVEMENT DISTRICT #5 APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM ANNEXATION TO COUNTY SANITATION DISTRICT NO. 21 -;To receive off-site sewer disposal services, a new project or property must annex to the :County Sanitation District. McDonald's Corp. has requested that their property located at 21095 Golden Spgs. Dr. be annexed into County Sanitation District No. 21. In order to bring a new project or property into the District, the District has the obligation to negotiate with agencies I receiving ad valorem taxes generated in the subject area. Consequently, the County Sanitation Districts is requesting the City to execute two copies of a joint resolution approving and accepting negotiated exchange of property tax revenues resulting from annexation to County Sanitation District No. 21. `Recommended Action: It is recommended that the City Council adopt Resolution No. 2000 -XX approving and accepting the negotiated exchange of property tax revenues resulting from Annexation No. 682 to County Sanitation District No 21: Requested by: Public Works Division i 6.10 CONSIDERATION OF A TEN-YEAR. AGREEMENT WITH THE SOUTH COAST AIR QUALITY' MANAGEMENT DISTRICT (AQMD) TO LEASE OFFICE SPACE (12,117 sq. ft.) FOR DIAMOND BAR CITY HALL AT AN INITIAL COST OF ,$1.65 PER SQUARE FOOT Shall the City enter into a ten-year agreement with the AQMD to OCTOBER 17, 2000 PAGE 6 lease office space and relocate the Diamond Bar City Hall to the AQMD campus. Recommended Action: It is recommended that the City Council approve the agreement with the AQMD to lease 12,117 -sq. ft. ofoffice space at a cost of $1.65 per sq. ft. for the first two years, escalating by $0.05 per sq. ft. every two years thereafter'. Requested by: City Manager 6.11RESOLUTION NO.2000-XX: A RESOLUTION'OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR AUTHORIZING REPRESENTATIVES OF THE CITY OF DIAMOND BAR TO ACQUIRE FEDERAL SURPLUS PROPERTY FROM THE CALIFORNIA STATE AGENCY FOR SURPLUS PROPERTY - Since March 19, 1996, the City has maintained eligibility to participate in the Federal Surplus Program. The Department of General Services Procurement Division is requesting eligibility renewal. Only names listed will be ;considered current and all previous authorizations will be rescinded. Surplus under this program includes military and state items ranging from buses and forklifts to computers and desks.,The Eligibility Renewal Application and Terms and Conditions are included in the Resolution. Renewal of eligibility will be required in three years. Approval of the resolution will ;merely provide the City with an opportunity to purchase items in the future should items required by the City be available through this program. All purchases made through this program will conform to the City's purchasing policies & procedures. Recommended Action: It is recommended that the City Council adopt Resolution No. 2000 -XX authorizing representatives of the City to acquire federal surplus property from the California State Agency for Surplus Property. Requested by. City Manager 7. PUBLIC HEARINGS: 7:0;0 p.m., or as soon thereafter as matters may be heard. None 8. OLD BUSINESS: 8.1 -INLAND VALLEY HUMANE SOCIETY AND S.P.C.A. (IVHS) CONTRACT FOR FISCAL YEAR 2000-01 - The contract for animal control services through the IVHS expired June 30, 2000. IVHS has submitted a contract for FY 00-01 in the amount of $72,486.` This is a $7,242 increase over last year's contract amount ($65,244). Based on the information OCTOBER 17, 2000 PAGE 7 provided in the staff report, staff recommends that the Council approve a one-year contract keeping the contract at its current rate ($65,244) by adopting ,a new 'fee schedule. A resbiution to adopt a new fee schedule will `require a public hearing, which will be scheduled for October 17, 2000. Continued from October 3, 2000. Recommended Action: it is recommendedthat the City Council(l) approve the FY 00-01 contract for Animal Control Services ::with IVHS at $65,244; and (2) set a public hearing to consider adoption of a new fee schedule as recommended by the'IVHS. Requested by: City Manager 9. NEW BUSINESS; 9.1 CONSIDERATION OF PROPOSED 4TH OF JULY CONCERT AND FIREWORKS SHOW For the past 10 years, the Summer Concerts.in the Park series has been held on Wednesday evenings from 6:30 p.m. to 8:00 p.m. at Sycamore Canyon Park. In the summer of 2001, the 4th of ;July 'falls on a Wednesday evening. When this circumstance was presented to the Parks & Recreation 'Commission at its August 24, 2000 meeting, the Commission recommended that'a fireworks show be added to the patriotic concert on July 4th. The Commission further recommended that if a fireworks show is not a part of the 4th of July concert, then there should be no concert on that date. This issue was presented to Council at its joint study session with the Parks & Recreation Commission on September 6, 2000 and Council 'directed 'staff to agendize this matter for a future Council meeting. Staff has developed two options for 4th of July patriotic concert. Option I is for an evening concert from 6:30 p.m. to 9:00 p.m., followed by a 'fireworks show. Cost for Option I is.about $20,000. Option II is for an afternoon concert from 1:00 p.m. to 4:00 p. with no fireworks show. Cost for Option II is about $10,000. There is also a third option, which is to not have :a concert on July 4, 20Q1, but instead have the patriotic concert on Wednesday, June 27, 2001. Recommended Action: It is recommended that the City "Council review the options presented for the July 4 2001 Summer Concert date and direct staff as appropriate. Requested by: Community Services Division RECESS TO REDEVELOPMENT AGENCY Next Resolution No. RA 2000-02 ...;- _ _ CITY OF DIAMOND BAR, NOTICE OF PUBLIC MEETING AND AFFIDAVIT OF POSTING 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 9 1. CLOSED SESSION: CITY OF DIAMOND BAR "QUICK CAP" MINUTES OCTOBER 17, 2000 None 2. CALL TO ORDER: Mayor O'Connor called the meeting to order at 6:40 p.m. in the Auditorium of the South Coast'Air Quality Management District, 21865 E. Copley Dr., Diamond Bar, CA PLEDGE OF ALLEGIANCE: Mayor Pro Tem Ansari INVOCATION: Dr. James Price, Diamond Canyon Christian Church ROLL CALL: Council Members Chang, Herrera, Huff, Mayor Pro Tem Ansari, Mayor O'Connor Also present were: Mike Jenkins, City Attorney; James DeStefano, Deputy City Manager; David. Doyle, Deputy City Manager; David Liu, Director of Public Works; Bob Rose., Director of Community Services; Linda Magnuson, Finance Director; Mike Nelson, Communications & Marketing Director and Lynda Burgess, City Clerk. APPROVAL OF AGENDA: M/O'Connor announced the receipt of a letter from City Manager Belanger offering his resignation effective October 20, 2000. Due to the fact that the letter was just received, M/O'Connor proposed that an emergency closed session be held immediately following the Special Presentations portion of the agenda and that item 9.2 be added to the agenda for acceptance of the resignation and designation of an Interim City Manager. Moved by C/Ansari, seconded by C/Herrera. Motion carried -5-0 by the following Roll Call vote: 3A. SPECIALPRESENTATIONS,_ CERTIFICATES, PROCLAMATIONS: 3.A.1 Proclaimed October 22-28,2000 as "Childhood Lead Poisoning Prevention Week." 3.A.2 Proclaimed October 28, 2000 as "National Immigrants Day. 3.A.3 Proclaimed October 22-28, 2000 as "Red Ribbon Week." Presented to Superintendent Hockwalt on behalf of the Walnut Unified School District and to Carol Thomas on behalf of the Pomona Unified School District. 3.A.4 Proclaimed October 2000 as "Crime Prevention Month." 3.A.5 Presented Certificates of Recognition to Community Volunteer member Eberhard Meyer for 500 hrs. of OCTOBER 17, 2000 PAGE 2 service and. Glen Plovanich for 1000 hrs. of service. 3.A.6 Presented Certif icate of Recognition to Marissa McKendall for finding Council Member Herrera's purse at Albertson's Market and returning it to her. 3.A.7 Presentation by Ray Anderson, Vice President, Waste Management Re: New Trash System. 3.A.8 Deputy City Manager David Doyle introduced Todd Strojny, Senior Administrative Assistant ADJOURNED TO CLOSED SESSION: 7:20 p.m. CLOSED SESSION: Government Code Section 54957 re: discussion of appointment of Interim City Manager. RECONVENED REGULAR MEETING: 7:55 p.m. M/O'Connor announced that no reportable action had been taken during the Closed Session. 3B. CITY MANAGER REPORTS AND RECOMMENDATIONS: 4. 4.a PUBLIC COMMENTS: Dave Reynolds -re: slope maintenance and potential hillside failures. Wants to remind the public to keep their storm drains cleaned out. Clyde Hennessee - again gave his viewpoint on the measures on the November 7, 2000 ballot. Larry Rhodes.- asked staff to try to prevent residents from feeding their pets outside which brings out possoms, skunks, etc. Toni Simmons on behalf of Northminster Presbyterian Church announced Alternative Gift Market and Cultural Celebration at the church on November 5, 2000. William Fine - against proposal of adding,a truck lane to the 60 fwy. Sue Sisk re Lanterman Agreement. Darla Farrell Dick Farrell re sewer problem at his home. 4.b RESPONSE TO PUBLIC COMMENT: OCTOBER 17, 2000 PAGE 3 DCM/DeStefano suggested working with the Humane Society regarding `ardin the, problem of vermin.in certain neighborhoods due to residents leaving pet food outside. In "addition, a community outreach program could be conducted to alert the public of the need to keep petfood indoors. C/Ansari explained the status of the truck lane situation on the 60 fwy. Only a feasibility study being done. 5. SCHEDULE OF FUTURE EVENTS:- 5.1 DIAMOND BAR COMMUNITY FOUNDATION October 19, 2000 - 7:00 p.m., AQMD Room CC -8,-21865 E. Copley Dr. 5.2 CHAMBER OF COMMERCE BUSINESS EXPO - October 21, 2000 - 9:00 a.m. to 3:00 p.m., K -Mart Parking Lot, 249 S. Diamond Bar Blvd. 5.3 PLANNING COMMISSION October 24, 2000 - 7:00'p.m., AQMD Auditorium, 21865 E. Copley Dr: 5.4 PARKS &'RECREATION COMMISSION - October 26, 2000 7:00 . p.m., AQMD Board Hearing Room, 21865 E. Copley Dr. 5.5 "HALL OF HORRORS HAUNTED HOUSE - October 28, 30 & 31 - 6:00 10:00 p.m. - Heritage Park Community Center, 2900 S. Brea Canyon Rd. 5.6 FALL FUN FESTIVAL - October 31, 2000 - 4:30 to 8:30 p.m., Heritage Park, 2900 S. Brea Canyon Rd. 5.7 COMMUNITY/SENIOR CENTER TASK FORCE MEETING'- November 2,' 2000 - 7:00 p.m., AQMD, 21865 E. Copley Dr. 5.8 CITY COUNCIL MEETING November 7,2`000 6:30 p.m., AQMD Auditorium, 218.65 E. Copley Dr. 5.9 ELECTION DAY November 7, 2000 - 'Polls open from 7:00 a.m. - 8:00 p.m. 5.10 TRAFFIC & TRANSPORTATION COMMISSION - November 9, 2000 - 7:00 p.m., AQMD Board Hearing Room, 21865 E Copley Dr. 5.11 VETERAN'S DAY - November 10, 2000 (Friday) - City Offices will be closed in observance of Veteran's Day. Will reopen Monday, November 13, 2000. 5.12 PLANNING COMMISSION - November 14, 2000 - 7:00 p.m., AQMD Auditorium, 21865 E Copley Dr. 5..13 COMMUNITY MEETING REGARDING THE COMMUNITY/SENIOR CENTER November 15, 2000 - 7:00 p.m., AQMD Auditorium, 21865 E. Copley Dr. 5.14 CITY COUNCIL MEETING November 21, 2000 - 6:30 p.m., AQMD Auditorium, 21865 E. Copley Dr. 6. CONSENT CALENDAR: Moved by C/Chang, seconded by C/Ansari to approve the Consent Calendar, with the exception of Items No. 6.8 and 6.10. Motion carried 57-0 by the following Roll Call vote: 6.1 APPROVED MINUTES`- Regular Meeting of October 3, 2000'- As submitted. OCTOBER 17, 2000 - PAGE 4 6.2 RECEIVED AND FILED PLANNING COMMISSION MINUTES - Regular Meeting of August 8, 2000. 6.3. RECEIVED AND FILED TRAFFIC AND TRANSPORTATION COMMISSION MINUTES: 6.3.1 Regular. Meeting of June 8, 2000. 6.3.2 Regular Meeting of July 13, 2000. 6.4 RECEIVED AND FILED PARKS AND RECREATION COMMISSION MINUTES - `Regular Meeting of August 24, 2000. 6.5 APPROVED VOUCHER:REGISTER - dated October 17, 2000 in the amount of $656,649.53. (M/O'Connor recused herself from approval of P.O. 10293, $'120; Petty Cash of $14.98; A10471 $1496.03; 110310 $35.00; 109874 $17.50; 9885 $5882.42; 10495 $1293.34 due to a potential conflict of interest, regarding the Lanterman Forensic. Expansion Project.' 6.6 REVIEWED AND APPROVED TREASURER'S REPORT - for August 2000. 6.7 APPROVED NOTICE- OF COMPLETION FOR TRAFFIC SIGNAL IMPROVEMENTS AT THE INTERSECTION OF BREA CANYON. ROAD/DIAMOND CREST LANE, BREA CANYON ROAD/GLENBROOK DRIVE AND BREA CANYON ROAD/GOLDEN SPRINGS DRIVE - `accepted the work performed by L.A. Signal and authorized the City Clerk to file the Notice of Completion and- release any retention amounts thirty-five days after the date of recordation ADOPTED RESOLUTION NO. 2000-52: 'A JOINT RESOLUTION OF THE BOARD OF SUPERVISORSOFTHE COUNTY OF LOS 'ANGELES ACTING IN BEHALF OF LOS ANGELES COUNTY GENERAL FUND, LOS ANGELES COUNTY LIBRARY, LOS ANGELES COUNTY FLOOD CONTROL, LOS ANGELES COUNTY CONSOLIDATED FIREPROTECTION DISTRICT, LOS ANGELES' COUNTY LIGHTING DISTRICT #10006 - DIAMOND BAR, LOS ANGELES.COUNTY FIRE-FFW, THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 21 OF LOS ANGELES COUNTY', AND THE GOVERNING- BODIES' OF CITY OF DIAMOND BAR, GREATER LOS ANGELES COUNTY VECTOR CONTROL DISTRICT, THREE VALLEYS MUNICIPAL WATER DISTRICT, WALNUT VALLEY WATER DISTRICT (WVWD), WVWD,-IMPROVEMENT DISTRICT #5 APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM ANNEXATION TO COUNTY SANITATION DISTRICT NO. 21 - approving and accepting the negotiated exchange of property tax revenues resulting from Annexation No. 682 to County Sanitation District No. -21 (McDonald's at 21095 Golden Springs Dr.) OCTOBER 17, 2000 PAGE 5 6.11 ADOPTED RESOLUTION NO.2000-53: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR AUTHORIZING REPRESENTATIVES OF THE CITY OF DIAMOND BAR TO ACQUIRE FEDERAL SURPLUS PROPERTY FROM THE CALIFORNIA STATE AGENCY FOR SURPLUS PROPERTY. MATTERS WITHDRAWN FROM CONSENT CALENDAR: !' AWARDED CONTRACT FOR DOCUMENT CONVERSION SERVICES - to Prime Ventures, Inc. dba Document Imaging Service Corp. in the amount of $79,239.08 for document conversion services.for engineering drawings and maps and building permits, with a 10% contingency for contract changes in the amount of $7,923 Moved by M/O'Connor, seconded by C/Ansari to award. Motion carried 5-0 by the following Roll Call vote; 6.10 APPROVED A TEN-YEAR AGREEMENT WITH THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (AQMD)'TO LEASE OFFICE SPACE (12,117 sq. ft.) FOR DIAMOND BAR CITY HALL AT AN INITIAL COST OF $1.65 PER SQUARE FOOT - for.the first two years, escalating by $0.05 per sq ft. every two years thereafter. Moved by C/Ansari, seconded by C/Huff and C/Chang. Motion carried 5-0 by the following. Roll Call vote: 7 PUBLIC HEARINGS: 7:00 p.m., or as soon thereafter as matters may be heard.None OLD BUSINESS; 8.1 INLAND VALLEY HUMANE SOCIETY AND S.P.C.A. (IVHS) CONTRACT FOR FISCAL YEAR 2000-01 - The contract for animal control services through the IVHS expired June 30 2000. IVHS has submitted a contract for FY 00-01 in the amount of $72,486 This is a $7,242 increase over last year's contract amount ($65,244). Based on the information provided in the staff report, staff recommends that the Council approve a one-year contract keeping the contract at its current rate ($65,244) by adopting a new fee schedule. A resolution to adopt a new fee schedule will require a public hearing, which will be scheduled'. for October 17, 2000. Continued from October 3, 2000.` Larry Rhodes - Complained about previous -treatment of his dogs by the Humane Society. Clyde Hennessee Asked for the matter to be continued until further information is available to the public. OCTOBER 17 2000 PAGE 6 Moved by C/Huff, seconded by C/Ansari to continue the matter to the November 7, 2000 and direct staff to contact other cities who contract with L.A. County for animal control services. Motion carried 5-0 9. NEW BUSINESS: 9.1 CONSIDERATION OF PROPOSED 4TH OF JULY CONCERT AND FIREWORKS SHOW For the past 10 years, the Summer Concerts in the Park series has been held on Wednesday evenings from 6:30 p.m. to 8:00 p.m. at Sycamore Canyon Park. In the summer of 2001, the 4th of July falls on a Wednesday evening. When this circumstance was presented to the Parks & Recreation Commission at its August 24, 2000 meeting, the Commission recommended that a fireworks show be added to the patriotic concert on July 4th. The Commission further recommended that if a fireworks show is not a part of the 4th of July concert, then there should be no concert on that date. This issue was presented to Council at its joint study session with the Parks &-Recreation Commission on September 6, 2000 and Council directed staff to agendize this matter for a future Council meeting. Staff has developed two options for a 4th of July patriotic concert. Option I is for an p. eveningconcert from 6.30 m. to 9:00 p.m., followed by a fireworks show. Cost for Option I is about $20,000. Option II is for an afternoon concert from 1:00 p.m. to 4:00 p.m. with no fireworks show. Cost for Option II is about $10,000. There is also a third option, which is to not have a concert on July 4,2001, but instead have the patriotic concert -on Wednesday, June 27, 2001. Martha Bruske - opposed to the idea of fireworks. Jeff Koontz - Concerned about the impact on staff of two events (City Anniversary and July 4th) within 70 days of each other. Moved by C/Herrera, seconded, by M/O'Connor to continue the matter to November 21, 2000. Motion carried 5-0 by the following Roll Call vote: 9_2 ACCEPTANCE OF RESIGNATION OF CITY MANAGER TERRENCE L. BELANGER AND WAIVE 60 -DAY NOTICE REQUIREMENT, APPOINTMENT OF INTERIM CITY MANAGER AND AUTHORIZING STAFF TO RELEASE A REQUEST FOR PROPOSALS FOR A CONTRACT WITH AN EXECUTIVE SEARCH AGENCY AND DECLARING THE URGENCY THEREOF - Moved by C/Herrera to appoint Jim DeStefano as, Interim City Manager; direct staff to release an RFP for an Executive Search Agency and direct the Mayor and Mayor Pro Tem to develop additional compensation for Interim City Manager, OCTOBER 17, 2000 PAGE 7 - seconded by C/Huff. Motion carried 4-1 (Ansari absent). RECESS TO REDEVELOPMENT AGENCY 10:00 P.M. 1. CALL TO ORDER: Chairman Huff called the meeting to order at 10:00 p.m. in the Auditorium of the South Coast Air Quality Management District, 21865 E. Copley Dr., Diamond Bar, CA. ROLL CALL: Agency Members Ansari, Herrera, O'Connor, VC/Chang, C/,Huff Also present were: Mike Jenkins, Agency Attorney; James DeStefano, Deputy City Manager; David Doyle, Deputy City Manager; David Liu, Director of Public Works; Bob Rose, Director of Community Services; Linda Magnuson, Finance Director; Mike Nelson,Communications & Marketing Director and Lynda Burgess, Agency Secretary. 2. PUBLIC COMMENTS: None offered. 3. CONSENT CALENDAR: Moved by AM/O'Connor; seconded by C/Huff to approve :the Consent Calendar. Motion carried 5-0 ;by the following Roll Call Vote: 3.1 APPROVED MINUTES- Regular Meeting of October 3, 2000 - As submitted. 3.2 APPROVED VOUCHER REGISTER - dated October 17, 2000 in the amount of $895.92. 3.3 REVIEWED AND APPROVED TREASURER'S REPORT - for August .2000 4. PUBLIC HEARINGS: None 5. OLD BUSINESSa None 6. NEW BUSINESS None 7. AGENCY MEMBER COMMENTS: None offered. ADJOURN REDEVELOPMENT AGENCY MEETING: 10:02 p.m. RECONVENE.CITY COUNCIL MEETING: 10. COUNCIL SUB COMMITTEE'REPORTS: 11. COUNCIL MEMBER COMMENTS: C/Chang left the meeting at 10:30 p.m. (during C/Huff's MINUTES OF THE CITY COUNCIL 40 REGULAR MEETING OF THE CITY OF DIAMOND BAR OP, OCTOBER 3, 2000 CLOSED SESSION: M/O'Connor called the Closed Session to order at 5:00 p.m. in Room CC -8 of the South Coast Air Quality Management District, 21865 E. Copley' Drive, Diamond Bar, CA. Discussion regarding: City Manager Evaluation (G.C. 54957 - Public Employee Performance Evaluation) Present: Council Members Chang, Herrera, Huff, Mayor Pro Tem Ansari and Mayor O'Connor. 1. CALL TO ORDER: Mayor O'Connor called the regular City Council meeting to order at 6:40 p.m. in the Auditorium of the South Coast Air Quality Management District, 21865 E. Copley Drive, Diamond Bar, California. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Council Member Chang. INVOCATION: The invocation was given by Ron Rose, Associate Pastor, Calvary Chapel. ROLL CALL: Mayor O'Connor, Mayor Pro Tem Ansari, and Council Members Chang, Herrera, Huff. Also present were: Terrence L. Belanger, City Manager; Mike Jenkins, City Attorney; David Doyle, Deputy City Manager; James DeStefano, Deputy City Manager; David Liu, Director of Public Works; Bob Rose, Community Services Director; Mike Nelson, Communications and Marketing Director and Lynda Burgess, City Clerk. APPROVAL OF AGENDA: CM/Belanger recommended that Item 6.5 be continued to October 17, 2000. The Council concurred. 3. A. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 3.A.1 Proclaimed October 7, 2000 as the ,8T" Annual Memory Walk Benefit for the Los Angeles Alzheimer's Association." 3.A:2 Captain Yim introduced Deputy Diane Dodd, new Diamond Bar Team Leader. 3. B. CITY MANAGER REPORTS AND RECOMMENDATIONS: CM/Belanger stated that tomorrow the Los Angeles County "rolling walkout' strike will close the D.B. Library. At this time, Mrs. Chang, Librarian does not know the extent of the closure; however, she will keep the City apprized of future developments. CM/Belanger further stated that, in accordance with the City's new waste hauling contracts,Waste Management will begin distribution of three waste containers to each residence' during the week of November 13, 2000 commensurate with OCTOBER 3, 2000 PAGE 2 CITY COUNCIL. 4 collection days. The containers will consist of a 64 -gallon container for non- recyclables, a second container for recyclables and a third for green waste. The cost of the 64 -gallon service, which consists of three 64 -gallon containers, is $14.96 for the three containers. If a resident chooses a smaller container, the cost will be slightly lower and for larger containers, the cost will be slightly higher. Container distribution will take place over'a five-day period. Commercial/industrial transition has begun and will be fully implemented on November 1. During the discontinuation period, Valley Vista has the right to bin -served pickup and Waste Management has a discontinuance right for the next five years. For a period of time, there may be two companies doing collection in the commercial/industrial areas of the community. In response to M'O'Connor, Ray Anderson, Waste Management, explained that residents would receive a standard 64 -gallon system. Residents can order a second 64 -gallon recycling container or a second 64 -gallon green waste container at no extra charge. Residents will have a 64 -gallon black trash container and they can obtain two additional recycling containers and two additional green waste containers at . no extra charge for the $14.96 rate. There would be an additional charge for a third container. Residents who do not fill out a postcard requesting specific containers will receive three standard 64 -gallon containers, one for green waste, one for recycling and one for waste. Residents have 60 days to change the size of their containers at no additional charge. He reminded the public that Waste Management offers significant discounts for senior residents, (60 years of age and above). Seniors who have not previously received service are asked to send a photocopy of their driver's license with their, request. PUBLIC I COMMENTS: Andrew Wen,. 23545 Goldrush Drive, is concerned about the City's six -ball limitation rule for tennis players. Jennifer Wu said she does not enjoy playing tennis when she is limited to carrying six tennis balls onto the court because she spends too much time picking up the tennis balls. She asked Council to, remove the rule. Wai Wail Cheng, through an interpreter, presented a,50 -signature petition to the City Council asking that the six -ball rule be removed. David O'Connor, President, D.B. Amateur Radio Society, voiced concern that State legislation regarding, antennas has been put on hold. Amateur radio operators, by federal regulation, engage in emergency and other pubic service communications. The Governor vetoed SB 714, which was a measure passed unanimously by the State Assembly and Senate. The intent of SB 714 was to bring the State into concordance with Federal laws governing amateur radio antennas as has been done by 10 other states. As a result of the veto, the decision has been left to local legislative bodies which, in many cases, consist of people who are unfamiliar with the situation. Clyde Hennessee once again voiced his opinion about November ballot propositions. LL,._ _ 1-7 OCTOBER 3, 2000 PAGE 3CITY COUNCIL Takashi Wakamatsu, 22000 Birdseye Dr., said it is very difficult to play tennis with only six tennis balls and he did not wanted to be limited as to the number of balls he could use. Joseph Chang, 2846 Eaglecrest PI., said his children recently took tennis lessons through the City and they were not limited to the number of balls that they could use. He thought the six -ball rule is ridiculous and that the City should focus on other matters. Jung Huh, 1110 Cleghorn Drive #A, thanked Council for their efforts toward beautification of the community. He also complained about the six -ball rule and asked Council to reconsider the City's rule. Sue Sisk stated' that City tax dollars are wasted when street sweepers have to "dodge" parked cars. The Chaparral Middle School traffic on Mountain Laurel Way and D.B. Blvd. is horrific. Vehicles constantly violate the bike lanes. She suggested that the bikelane be narrowed to allow for additional through traffic. She asked if the City is following up on Section 1020 of the Vehicle Code and the removal of non- operable vehicles and trash. ,She asked why, cable information is not available for the community on the City's Web site. She stated her concern about the SCAG traffic study suggesting the addition of a truck lane on the SR 60, which would necessitate' cutting through the golf course and removing 100 D.B. homes and asked why the community had not been informed about this matter. Philip Tom was also concerned about the six -ball limitation on City tennis courts. Because someone is taking advantage of the tennis courts, all residents suffer from this limitation. 4. B. RESPONSE TO PUBLIC COMMENTS: CM/Belanger explained that the six -ball rule was a carryover from L.A. County days. Because of problems with unauthorized teaching at the tennis courts, enforcement of the six -ball rule has been stepped up. CSD/Rose stated that the six -ball rule had been posted on the City's tennis courts since incorporation. The rules were reviewed by the Parks' & Recreation Commission in 1996 and at that time, the six -ball was retained. The purpose of the rule is to prevent unauthorized instructors from conducting private lessons on the City's courts and when`a basket of balls is used; it is common for the bails to spill over onto neighboring courts presenting a;safety concern. The recent enforcement has to do with the ongoing illegal private instruction that takes place. Speakers are invited to the next Parks & Recreation' Commission meeting to express their concerns. DCM/DeStefano stated that the City's Code Enforcement staff has been on a pro- active implementation policy since the beginning of the year. Officers visit neighborhoods and address a number of Code Enforcement violations based upon their observation in those areas. In the particular neighborhood referenced, there OCTOBER 3, 2000 PAGE 4 CITY COUNCIL may violations ranging from trashcans left at street side too long to inoperable vehicles. Depending upon the type of violation observed, the Code Enforcement Officers will use their judgement in the timeframe necessary for securing compliance and the type and style of necessary follow up-. In the case of inoperable vehicles, a more formal notice will be provided and the City will work with the owner to secure an operable vehicle or to assist the owner in moving the vehicle. If compliance is properties i not achieved within 30-60 days, the vehicle can be towed from the ro ernes via the Sheriff's Department. DCM/Doyle stated that the Lanterman Public Meeting date replay is advertised on the City's Web site under the Lanterman section. M/O'Connor asked staff to follow up on the non -response from Adelphia's customer service. M/O'Connor reminded residents that she announced at the last Council Meeting that SCAG is holding meetings in this area. A Truck Lane Task Force meeting is scheduled for Thursday, October 26 at the SCAG office in Los Angeles. Contact the City for the time of the meeting. . MPT/Ansari explained that the truck lane study began several years ago and no decision has been made. The process is ongoing. C/Herrera explained that ,SCAG is considering several options. Removal of a portion of the golf course and several homes to accommodate a truck lane is the most expensive proposition and there is no funding available. SCAG is gathering public opinion regarding these options. M/O'Connor announced that the Lanterman meeting of September 14 was shown last friday at 3:00 p.m., last night at 7:30 p.m. and it will be shown again on October 6 at 3:00 p.m. 'Adelphia has agreed to show the program again if the community wishes. 5. SCHEDULE OF FUTURE EVENTS: 5.1 HOUSEHOLD HAZARDOUS WASTE ROUNDUP - October 7, 2000 - 9:00 a.m. - 3:00 p.m., Mt. SAC parking Lot B, 1100 N. Grand Avenue, Walnut 5.2 PLANNING COMMISSIONMEETING October 10, 2000 - 7:00 p.m., SCAQMD Auditorium, 21865' E. Copley Dr. 5.3 CITY ON-LINE COMMITTEE - October 11, 2000 6:00 p.m., SCAQMD Room 00-8, 21865 E. Copley Dr. 5.4 TRAFFIC AND TRANSPORTATION COMMISSION MEETING - October 12, 2000 - 6:00 p.m. - 7:00 p.m. SCAQMD Hearing Board Room, 21865 E. Copley Dr. OCTOBER 3, 2000 PAGE 5 CITY COUNCIL 5.5 CITY COUNCIL MEETING October 17, 2000 - 6:30 p.m., SCAQMD Auditorium, 21865 E. Copley Dr. 5.6 DIAMOND BAR BUSINESS EXPO'- October 21, 2000 - 9:00 a.m. to 3:00 p.m., Kmart Parking Lot, 249 S. D.B. Blvd. 6. CONSENT CALENDAR: MPT/Ansari moved, C/Huff seconded, to approve the Consent Calendar with the exception of Item 6.5 which was continued to October 17, 2000. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS Chang, Herrera, Huff, MPT/Ansari . M/O'Connor NOES: COUNCIL MEMBERS - None ABSENT: COUNCIL MEMBERS - None 6.1 APPROVED MINUTES: 6.1.1 City Council Study Session of September 19, 2000'- As submitted. 6.1.2 Regular City Council Meeting of September 19, 2000 - As submitted. 6.2 APPROVED VOUCHER REGISTER - dated October 3, 2000 in the amount of $973,835.83. M/O'Connor abstained from approval of the following Voucher Register item due to a potential conflict of interest regarding the Lanterman Forensic Expansion Project: P.O. 10221 in the amount of $157.50. 6.3 APPROVED EXTENSION OF TENNIS INSTRUCTOR CONTRACT - with Tennis Anyone in an amountnot to exceed $40,000 for FY 2000/2001. 6.4 APPROVED EXONERATION OF CASH DEPOSITS GIVEN IN LIEU OF A GRADING' BOND (FAITHFUL PERFORMANCE,' LABOR & MATERIAL) AND FAITHFUL PERFORMANCE BOND FOR SANITARY SEWER INSTALLATION' FOR THE PROPERTYLOCATEDAT 22344 AND 22364 GOLDEN SPRINGS DRIVE (CURRENT OWNER IS CALVARY CHAPEL) a) exonerated cash deposit in lieu of ,grading bond (faithful performance, labor & material) in the amount of $8,520; b) exonerated cash deposit in lieu of faithful performance'' bondfor sanitary sewer, installation in the amount of $18,000; and d) directed the City Clerk to notify the owner and surety of these actions. 6.5 CONTINUED TO OCTOBER 17, 2000 - INLAND VALLEY HUMANE SOCIETY AND S.P.C.A. (IVHS) CONTRACT FOR FISCAL YEAR ne1 - The contract for animal control services through he IVHS expired ed Ju30, 2000. IVHS has submitted a contract for FY 2000-2001 in the amount of $72,486. ' This is a $7,242 increase over last, year's contract amount ($65,244). Based on the information provided in the staff report, staff recommended that the Council approve a one-year contract keeping the OCTOBER 3, 2000 PAGE 6 CITY COUNCIL contract at its current rate ($65,244) by adopting a new fee schedule.- A resolution to adopt a new fee schedule will require,a public hearing, which will be scheduled for October 17, 2000. 7. PUBLIC HEARING: 7.1 PUBLIC HEARING - RESOLUTION NO. 2000-51 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR RE: ASSEMBLY BILL 939 FEES In 1990, the City established AB 939 fees for residentialand non- residential accounts to offset the costs of preparing, adopting and implementation of the integrated waste management plan/program: These fees have never been increased since, although the requirements of AB 939 have increased. Recently, the City enacted a new solid waste ordinance and entered into long term agreements for solid waste and recycling services with two haulers. Moreover, the City reported that its AB 939 -diversion rate was only at 28% in 1999; most likely due to problems in reporting tonnage , local landfills. To address the increased reporting and monitoring requirements of complying with the 50%o diversion goal and the challenges of implementing the state-of-the-art solid waste and recycling system, the City is planning to revise its fee schedule. As the City is the responsible agency to meet the AB 939 goal, State law enables the City to enact fees to help it implement programs; non-compliance with thegoalcan result in fines of up to $10,000 per day. M/O'Connor opened the Public Hearing. Clyde Hennessee spoke about AB 939. Larry Liebersbach, Waste Resource Diversions, encouraged the City to consider exempting recycling containers from tax to encourage recycling. Waste Resource Diversions' one customer contributed 607 1/2 tons of recyclable material in 1999. To date in 2000, the company has contributed 435 tons of material. Jeff Koontz asked what the anticipated increase .in fees would do to the City's diversion rate. Will the City reach its 50 diversion rate barrier. Does the last line of the recommended action have an open door to it or can the fee be changed to meet the "limitation requirements. There being no further testimony offered, M/O'Connor closed the Public Hearing. In response to Mr. Hennessee, CM/Belanger explained that Proposition 37 on the November ballot seeks to modify the effect of the decision known as the "Sinclair" decision wherein a public agency assessed a fee on Sinclair Paints. The fee was related to environmental mitigation. Sinclair Paints considered the fee to be a tax rather than a traditional fee. The courts disagreed and this initiative has been placed on the ballot to effectively OCTOBER 3, 2000 PAGE 7 CITY COUNCIL change the effect of that decision. This proposal is not on -point with the Sinclair Paint case. D.B. is proposing that an administrative fee is not a regulatory fee and it is not an environmental regulation fee or anything of that nature. CA/Jenkins concurred with CM/Belanger. In response to Mr. Koontz' concern, CM/Belanger stated that whether the City has an open-ended ability to change the fee at any time, State law requires that any change to a fee must be done after a duly, noticed Public Hearing by City Council action. In response to M/O'Connor, J. Michael Huls explained that; in order to encourage recycling, there is no tax on any recycling in the City. Following' Council discussion, C/Chang moved, MPT/Ansari seconded, to adopt Resolution No. 2000-51 amending AB 939 administrative' fees to a' level commensuratewith implementation requirements. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS - Chang, Herrera, Huff, MPT/Ansari, M/O'Connor NOES: COUNCIL MEMBERS - None ABSENT: COUNCIL MEMBERS`- None 8. OLD BUSINESS: None 9. NEW BUSINESS: None RECESS TO REDEVELOPMENT AGENCY: M/O'Connor recessed the City Council meeting to the Redevelopment Agency meeting at 8:33 p.m. RECONVENE CITY COUNCIL MEETING: M/O'Connor reconvened the City Council meeting at 8:35 p.m: 10. COUNCIL SUB -COMMITTEE REPORTS 'AND MEMBER COMMENTS: C/Huff stated that he had attended several traffic -related meetings during the past two weeks. He served on a panel at the September 21 Economic Conference that. discussed the transportation infrastructure in the area. He attended the APTA Conference in San Francisco, funded by Foothill Transit. The purpose of the conference was to find ways to encourage people out of their cars and into other more economical;. forms of transportation which frees roadways. He announced that on October 18, a public meeting would be held on the Temple Avenue Crossing at Shilo Hilltop from 6:00 to 8:00 p.m. He reminded concerned residents that the SCAG truck study public meeting would be held on Thursday, October 26. C/Herrera announced that the Lanterman Advisory Committee would meet on Tuesday, October 10 at 7:00 p.m. The City has approved the documentofagree- OCTOBER 3, 2000 PAGE 8 CITY COUNCIL ment. The City of Pomona approved the document last evening. The City of Walnut has yet to approve the document. The committee is seeking public input with respect to the proposed security plan and notification process, which has not yet been written." C/Chang attended the Chamber of Commerce Board Meeting and outlined the provisions of the agreement and informed attendees that the non-binding agreement with DDS and the State had been approved. He also informed the Chamber about the court's decision regarding the Redevelopment Agency's plan. As a result of the decision, Chamber members/business people are very concerned about the economic climate of D.B. and the City's inability to compete with neighboring communities for businesses. He took a personal business trip to Taiwan during which he visited Taipei City officials. The officials extended an invitation to D.B. H.S.'s band for November 2000. Unfortunately, the D.B.H.S. band has a previous engagement and Taipei City does not yet have a budget for 2001. If the band cannot go this year, 2001 will not be possible. The band is considering a trip in 2002, which gives the students time to prepare. He encouraged residents to attend a candidate forum to be hosted by the Moslem Public Affairs Counsel and Southern California Ecumenical Council, which covers the 29th Senatorial District. Ballot issues and candidate representation are important to consider. He also encouraged residents to tune in to the presidential and vice-presidential debates. Don't forget to register to vote by October 10 and vote on November 7. MPT/Ansari stated that following the September 19 -Council Meeting, she traveled to Rohnert Park to attend a Diversity Counsel meeting. She was appointed by the Southern California Region to represent 174 cities in the six -county region. The group consists of all of the Wildlife groups, Bureau of Land Management, the State Water Board, Fish and Game Department, conservation, groups, conservancy groups, etc. Discussion issues include land use planning and other issues that affect cities and areas throughout the state. Most of the attendees were from Sacramento and Northern Calif. In response, to an earlier speaker, MPT/Ansari will have information available at City Hall from SCAG meetings she attends. Tomorrow and Thursday, she will attend a regional meeting to discuss regional housing assessment needs. Regional Transportation Plan workshops will be held in the future and federal funding requests will be issued in 2001. She was concerned about whether the 57/60 HOV and weave lane improvements will solve the traffic issues. She believed that D.B. should push for additional federal funding to take care of future problems. She asked staff to request that CalTrans provide the latest traffic statistics with respect to 57/60 traffic impacts. M/O'Connor stated that on September 20, she, C/Herrera and C/Huff attended the Contract Cities meeting held at Fire Department headquarters. On September 21, she, C/Huff and staff members attended the Economic Outlook Conference at the Industry Sheraton during which the economics of the San Gabriel Valley were discussed. There are jobs available in I the San Gabriel Valley; however, companies are finding it difficult to locate qualified technical personnel. Also on September 21, she attended the D.B. Community Foundation meeting. The Foundation was established to conduct fund-raising for parks and cultural.activities in D.B. On OCTOBER 3, 2000 PAGE 9 CITY COUNCIL September 22, she, C/Huff and staff members met with the Community/Senior Center architect and established -a timeframe and time -line for activities.A community -wide meeting is planned for the middle of November. On September '23, she represented Council at the Walnut Valley Kiwanis installation dinner. On September 24, she represented Council during the Eagle Scout Awards. Two young D.B. residents from a Korean group received the awards. On September 26, she attended the Industry Manufacturing Counsel luncheon (Chamber of Commerce for the City of Industry)- at which Sheriff Baca was the featured speaker. On Wednesday and Thursday she, three staff members from the Communications and Marketing Department, CM/Belanger, DCM/Doyle and DCM/DeStefano attended the Western Regional International; Council of Shopping Centers in Palm Springs. She approached Trader Joe's to locate in D.B. and was told that they are not interested in locating in the City. Council and staff continue to encourage businesses to locate in D.B. On Wednesday, she also attended the District Sanitation Meeting and the D.B. Kiwanis installation dinner, during which Mack Kuykendall was installed as President. On September 9 she, MPT/Ansari and staff members attended the "Eggs and Issues breakfast at which Supervisor Don Knabe spoke about the current problems L.A. County is having with the MTA as well as other "rolling strikes." The County Clerk's office will be offering touch -screen voting in conjunction with the November 7 general election. All registered voters may go to any of the nine convenient locations which will be open October 16 through November 6, 8:30 a.m. to 4:30 p.m. Monday through Friday. The closest office to D.B. is the West Covina City Hall. Detailed information is available at the D.B. City Hall. ADJOURNMENT: There being no further business to conduct, M/O'Connor adjourned the meeting at 9:08 p.m. in memory of Elmer Hardaway, Finance Director Linda Magnuson's father, and bene Armentrout, Emergency Services Coordinator Philip Armentrout's mother. LYNDA BURGESS, City Clerk ATTEST: DEBBY O'CONNOR, Mayor MINUTES OF THE CITY OF DIAMOND BAR REGULAR MEETING OF THE PLANNING COMMISSION AUGUST 8, 2000 CALL TO ORDER: Chairman Nelson called the meeting to order at 7:05 p.m. in the South Coast Air Quality Management Headquarters Building Auditorium, 21865 East Copley Drive, Diamond Bar, California. PLEDGE OF ALLEGIANCE: The _Pledge =of Allegiance was led by Commissioner Kuo. 1: ROLL CALL: Present: Chairman Nelson, Vice Chairman Bob Zirbes, and Commissioners George Kuo, Joe Ruzicka, and Steve Tye. Also Present: James DeStefano, Deputy City Manager; Sonya Joe, Development Services Assistant; Linda Smith, Development Services Assistant, and Stella Marquez, Administrative Secretary. 2. MATTERS FROM THE AUDIENCE/PUBLIC COMMENTS: None offered. 3. APPROVAL OF AGENDA: As presented. 4. CONSENT CALENDAR: 4.1 Minutes of the July 25, 2000, meeting. C/Ruzicka moved, C/Kuo seconded, to approve the minutes of the meeting of July 25, 2000, as presented. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Kuo, Ruzicka, Tye, VC/Zirbes, Chair/Nelson NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: None 5. OLD BUSINESS: 5.1 Development Review No. 2000-09 (pursuant to, Code Sections 22.48.020) is a request to construct a three story (two stories and a basement) single family residence with a three car garage and balconies totaling to approximately 11,560square feet. The request also includes a swinumng' pool/spa, gazebo and retaining walls with a maximum six-foot exposed height.' (Public Hearing closed and continued from July 11 2000.) August 8, 2000 Page 2 Planning Commission PROJECT ADDRESS: 2718 Steeplechase Lane (Lot 54, Tract No. 30289) Diamond Bar, CA 91765 PROPERTY OWNER: Palazzo, Inca P.O. Box 5170 Diamond Bar, CA 91765 APPLICANT: An -Chi Lee 3740 Campus Drive #B Newport Beach, CA 92660 DCM/DeStefano'reported that this matter was continued in order for staff to look into concerns expressed by the Commission 1) The accessibility of the easement road and driveway situation, and 2) verify the amount of earth work proposed for the project. The Commission closed the p g y has the opportunity to deliberate on the matter and t hearinion the g on ;Jul pp , can nandreceive answers from the applicant regarding questions or concerns. With respect to access rights over the shared driveway, staff has received documentation from the applicant and has requested the City Attorney to look at the situation. The City Attorney gthedoes have rights over the access has concluded in a letter dated August 1y2000, that apPlicant�ner should not serve as a basis drive and that the objection presented b the adjacent property o for denial of the application by the Planning Commission. With respect to the quantity of 'earth work necessary for the project, the quantities have been verified as being 2700 cubic yards of earth work for the project - 25 cubic yards of cut and 200 cubic yards of fill with about 2300 cubic yards of earth work requiring exportation from the site. Assuming a truckload of about 12 cubic yards, it would equate to 192 full truckloads leaving the site. The precise quantities of earth work will likely vary as a result of final,engineering, grading and field conditions found once the project is underway. Staff recommends that the Planning Commission approve Development Review No. 2000-09, Findings of Fact, and conditions of approval as listed within the resolution. C/Tye asked what recourse is available to the Roberts in the event that Condition 5 (i) is not completed to their satisfaction. DCM/DeStefano stated that staff would recommend that Condition 5 (i) be. modified to include such things as determination of an access route by the Applicant, an assessment of the roadway condition for that route to be provide by the Applicant to the City's Engineer, a reassessment of the roadway by the City prior to the approval of final occupancy, and that the Applicant be responsible for repairing any damage that has been caused by the construction activities. It is staff's understanding that the roadway section is minimal and that it is about 35.-40 years old, This Applicant has access rights over the roadway but has absolutely no control over the condition of that roadway, has no ability to repair it - has no obligation to repair it, and unless and until the six August 8, 2000 Page 3 Planning Commission orseven involved property, owners get together and determine the method and responsibility of maintenance and upkeep the roadway will likely remain in its current condition. The property owners at either end of the driveway have tended to take care of their portions. It is the property owners in the middle that have not maintained their portion. VC/Zirbes said that he drove to the site yesterday. He came in on the access road to the south and he noted that all of the roadway leading to the site as well as, the frontage on the Applicant's property was in dire need of repair. The property owners to the north of the project site have improved their portion and the Roberts' have improved their portion with a concrete material instead of a blacktop material. Jim Stroffe, Attorney at Law, Friedman, Peterson and Stroffe, representing the Applicant, stated that the Applicant does not have a problem with the concept of a baseline assessment of the roadway and a determination as to what damage, if any, has been caused by the construction activity and an obligation on his part to repair that damage. C/Tye asked if the repair included re -paving in spite of its current condition would they do so. Jim Stroffe responded that what he is saying is that if there is damage caused to the roadway by the construction activity that does not pre-exist the construction activity, the Applicant will repair that damage to the pre-existing state. C/Tye questioned how asphalt could be restored to its pre-existing condition. Jim Stroffe admitted that this is a dilemma. Staff's suggestion to reconstruct the roadway in front of the Applicant's property is most likely where most of the construction activity will take place. It is likely the trucks will come empty across the Roberts' property causing the least amount of damage and exit the property at the other end where the lots are unimproved. The loading activity will take place on the Applicant's property. If there is damage occurring from the construction activity in other areas it will be repaired to the satisfaction of the City's Engineer. He indicated he was referring to Condition (h), which requires that the Applicant reconstruct which is different from repair. DCM/DeStefano explained that staff's intent was twofold: 1) to cause the eventual reconstruction of the entire roadway starting with this Applicant who will be responsible for their portion directly in front of their property. Any subsequent projects will have the identical condition unless and until the property owners get together and resolve the issue, and 2) to cause the Applicant to repair any damage that the construction causes to the balance of the roadway but only to bring it to the level existing prior to the construction activity taking place. Staff is not asking that the Applicant reconstruct the roadway fronting neighboring lots. Chair/Nelson re -opened the public hearing. Victor Natividad, Lot 55 (adjacent to the proposed project) said he is concerned, about 192 truckloads traveling over the access road. Construction will continue for about one year and with heavy loads the asphalt will give way. If the Applicant is going to fix the roadway they cannot wait until the rain stops because it will be extremely muddy. He does not want to pass the cost over to the builder but at the same time it has to be passable because he has witnessed even pickups moving in and out of the area causing severe problems. He asked that the roadway be repaired as soon as possible, especially during the heavy rains. W. Natividad explained to C/Ruzicka that repairwould not be an issue at this time. When the rains come, potholes will be created by heavy loads passing over the roadway. Left unattended; the damage will be extreme and it may render his access impassable. Chair/Nelson closed the public hearing. C/Ruzicka said he understands the conditions of approval as written. However, Mr. Natividad may have a point that there ought to be some kind of condition that the builder maintain the road in passable condition during the time of the project. VC/Zirbes suggested that Condition (i) be modified to read: "The Applicant shall repair damage that may occur to the shared access driveway during construction, on an ongoinwas needed basis, pursuant to the satisfaction of the City Engineer." C/Ruzicka concurred. Chair/Nelson said he shares the same concerns about the roadway. If the roadway is in very poor condition and portions are repaired back to its existing condition, he doesn't understand how this will take care of the situation. DCM/DeStefano responded that staff has discussed this matter at length. The issue is that there is no Homeowners Association and no shared ownership of this long access driveway. Requiring this Applicant to repair or improve the entire access drive puts this Applicant at the mercy of the other property owners. While staff agrees that repairing a bad road with a "new coat of paint" which will still have a bad structural condition, may not be the best way to deal with this matter. Staff is not sure that there, is necessarily a nexus between this Applicant's project and a responsibility to repair the entire roadway. While it is not the ideal situation, it is staff's opinion that it is the appropriate solution at this point. It is staff's hope that some of the property owners will capture the opportunity to rebuild their portion of the driveway. There may be an opportunity for a volume discount with the pavement contractor and hopefully, as a result of this project, some of the other homeowners will pitch in their share and more of the driveway will be properly repaired. Construction activities will be monitored on a regular basis. DCM/DeStefano responded to C/Ruzicka that the proposed wording change to Condition (i) would be redundant but it would not be onerous.' August 8, 2000 Page 5 Planning Commission VC/Zirbes asked if the cut under the roadway is strong enough to support the types of weight loads proposed for exporting earth and does: Condition (i) cover the understructure. DCM/DeStefano responded that the Applicant is required to provide soils reports (Condition (g)) that will prove that the property can withstand the additional loads for the house and for the use of the roadway for construction activity. VCMrbes moved, C/Tye seconded, to approve Development Review No. 2000-09, Findings of Fact, and conditions of approval as listed within the resolution subject to the following modification to Condition 5. (i): Add "on an ongoinglas needed basis" so that the condition reads: "The Applicant 'shall repair damage that may occur to the shared access driveway during construction, on an ongoinglas needed basis, pursuant to the satisfaction of the City Engineer." as well as, the inclusion of wording in Condition 5. (i) an assessment prior to construction regarding the selection of a route, a reassessment of the route and appropriate repair to any damage caused. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: ` Kuo, Ruzicka, Tye, VCIZirbes, Chair/Nelson NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: None 6. NEW BUSINESS: 6.1 Discussion on Joint Study Session of City Council and Planning Commission on August 15, 2000, - Review of proposed topics for discussion. Commissioners requested inclusion of the following topics for discussion: C/Ruzicka: 1) Status of Shopping Malls/redevelopment 2) Redevelopment Agency 3) Kmart Shopping Center plans 4) Top Value (Brea Canyon Road and Golden Springs Drive 5) Ralphs Market (Country Hills Towne Center) VC/Zirbes: 1) Status of approved CUP's 2) Redevelopment Agency 3) Industry East Project and its effect on D.B. business C/Tye: 1) (In Force) Conditional Use Permit Review Process August 8, 2000 Page 6 Planning Commission 2) Use of Code Enforcement Officers to clean up the city 3) Update re: Larkstone Park C/Kuo 1) Approval of Variances 2) D.B. Traffic and status of the Four Corners Freeway Study 3) Industry East Project 4) State Approval of the City's Housing Element Chair/Nelson: (Unable to attend the joint meeting) 1) Better Understanding of the Council's Vision for Open Space within the City as well as, at its borders. 2) Update on Council's Discussion Regarding Annexation of Lands to the Southwest. 3) Status of Tonner Canyon 4) Parks/Trails Master Plan 7. CONTINUEDPUBLIC HEARING: None 8. PUBLIC HEARING: 8.1 Conditional Use Permit No. 2000-03 (pursuant to Code Section 22.42.040 and 22.58) is a request to operate a Child Day Care Center in conjunction with a Montessori School. PROJECT ADDRESS: 23555 Palomino Drive Diamond Bar, CA 91765 PROPERTY OWNER: Abbey Company 12383 Lewis Street, Suite 200 Garden Grove, CA 92840 APPLICANT: Diamond Bar Montessori Academy 1861 Paseo La Paz Pomona, CA 91768 DSA/Smith presented staff's report. Staff recommends that the Planning Commission approve Development Review No. 2000-03, Findings of Fact and conditions of approval as listed within the resolution. DSA/Smith responded to C/Ruzicka that children may range in age from 2 to 11 years. The applicant is not concerned about the close proximity of the school to a bar. DSA/Smith indicated to Chair/Nelson that KnderCare operated at this location from 1979 to September, 1999. Parking is available on both sides of Derringer Lane in front of the school. Tige Licato reiterated the project plan.No structural changes are proposed. The Applicant intends to provide the same type of care previously offered by KinderCare. Speaking on behalf of himself and his partners, Mr. Licato stated he does not foresee any problem with conditions set forth by the City's Planning Department. However, the Applicant has a timeliness' issue since school commences at the end of August. There is a great deal of interest in the school. Thirty-five parents have indicated that they wish to enroll their children in the school and fully understand that there is not a specific date of opening due to the fact that Los Angeles County has not, yet process their business license application which was submitted two months ago. The City's Planning Department has conditioned the project that the business license must be in hand prior to issuance of the CUP. The Applicant has requested permission from the Planning Department to open prior to receipt of the business license. He reported that he spoke with Ms. Everett (L.A. County Business License Department) who indicated they cannot do,a site inspection until the CUP is completed and the business is up and running. The business license is the only outstanding matter. Attorney Gene Shield stated that this project is within the economic revitalization of the City of Diamond Bar. Due to the fact that there was a 20 year existing school in that location the Applicant is merely implementing the same program with a variance in terms of the education quality being at a higher level as well as, providing a day care facility for the residents of Diamond Bar within that economic revitalization plan. The CUP issue arose because the previous business had been closed longer than the required 180 days. DCM/DeStefano indicated to C/Ruzicka that business licenses are required in Diamond Bar for certain activities, of which this is one. Diamond Bar contracts with the County of Los Angeles to provide the service. A business license is required. The applicant is asking you to waive or extend that requirement such that they can open their business without the County business license which is a major policy issue that may outside, of the Planning Commission's scope of authority. The issue is how do you effectively do so and how do you receive assurances that the Applicant is going to process the business license. What if there are issues that the County discovers in the Applicant's background that cause them to not issue the license and you have a school that is now open. When and how would you seek revocation of the recently granted CUP. It creates a number of issues. For as many times as the City hears the County permits the processing of a the operation of a business without a license, they come back and 'say that they do not allow anything to open up without the license first being in hand. It is a difficult situation. As a City, the Planning Commission has no control over the County's process. C/Tye asked if it would be unprecedented to permit this. Applicant to open his school without physically having a business license? DCM/DeStefano said"No" because he can think of one other example in that immediate area where a business operated without a County business license which is still apoint of contention almost one year to the day later. If the 180 days had not expired, a business license would still be required, a CUP would not be required because they would not have lost their previous status. Mr. Licato responded to VC/Zirbes that the purchase of the property was consummated the end of June. VC/Zirbes said as a parent he is concerned about the proximity of the school to the bar. What types of requirements or conditions does the State Licensing Bureau impose with respect to the school's proximity to an establishment that sells alcohol. Mr. Licato responded that it was not an issue as far as the State is concerned. Children will not be waiting outside of the school for their parents. There is a strict state requirement that all children be signed in and out of the school with the time noted. VC/Zirbes asked if Mr. Licato has considered the peak hour traffic at that intersection and how it will effect his student population. How many children will be picked up between the hours of 4:30 p.m. and 6:30 p.m. Mr. Licato said he anticipates that because of the school's scheduling about one-third of the students will be dropped off and picked up at any given time. During those specific hours, about 25 to 30 students will be picked up. The school does not anticipate a traffic problem. C/Ruzicka asked if the Planning Commission can do what the Applicant is asking it to do. DCM/DeStefano responded that he does not believe it can. The Commission has a Municipal Code Provision that requires a business license prior to the operation of a business and he believes that the Planning Commission cannot waive that requirement. The license is presumed to be 90 days after the application has been filed which will not help this applicant. Chair/Nelson opened the public hearing. August 8, 2000 Page 9 Planning Commission There being no one who wished to speak on this matter, Chair/Nelson closed the public hearing. DCM/DeStefano suggested that the Planning Commission could approve the project with the provision that evidence of the filing for a business license to be provided to staff within 15 days of approval or the approval does not become effective. The second provision could be that this Conditional Use Permit expires at a certain time unless they have their business license in hand. The only remedy to that would be to seek an extension to the CUP from the Planning Commission. Assuming Planning Commission approval, staff would work with the Los Angeles County Business License Division in order to try to assure the timely conclusion of this application and other applications. C/Ruzicka emphasized his concern about the City's potential liability where small children are involved in the event that this school opens and problems ensue. VC/Zirbes concurred. There are children involved and he believes that all of the appropriate licensing should be in place before the facility opens. Mr. Licato indicated to Chair/Nelson that the business license matter is being disclosed to all applicants that they had intended to open at the end of August but because of the situation with the business license the opening may be pushed back. Parents are awaiting the Planning Commissions' decision. Attorney Shield stated that the proposed business is the same type of business that previously occupied the site. These Applicants have completed the rigorous background search with the Department of Social Services, Department of Education, etc. Chair/Nelson stated that there is no problem with the type of use. No one on, this Commission is questioning the validity of the operation or its benefits to the community we are discussing a major change in policy about which this body must be very cognizant. C/Tye moved, VC/Zirbes seconded, to approve Conditional Use Permit No. 2000-03, Findings of Fact, and conditions of approval as listed within the resolution. AYES: COMMISSIONERS: Kuo, Ruzicka, Tye, VC/Zirbes, Chair/Nelson NOES: COMMISSIONERS: None ABSENT: CONMSSIONERS: None August 8, 2000 Page 10 Planning Commission 8.2 Variance 2000-05, Administrative Development Review No. 2000-07 (pursuant to Code Section 22.52 and 22.48) is arequest to construct a two story single family residence of approximately 9,692 square feet, which includes two (2) two -car garages and second story decks. The request also includes a lap pool with spa, pond with waterfall, and pavilion. The Variance is requested for proposed crib walls that reach a maximum height of approximately 25 feet. PROJECT ADDRESS: 2001 Derringer Lane (Lot 73, Tract 30091) Diamond Bar, CA 91765 PROPERTY OWNER: Gene Pascual 14326 Spring Crest Drive Chino Hills, CA 91709 APPLICANT: Ron Wilson 2658 Del Mar Heights Road #149 Del Mar, CA 92014 DSA/Joe presented staff's report. Staff recommends that the Planning Commission approve Variance No. 2000-05 and Administrative Development Review No. 2000-07, Findingsof Fact, and conditions of approval as listed within the resolution. DSA/Joe explained the proposed project and the crib wall requirement and variance request in relationship to the topography of the site. Staff believes that the installation of the crib wall is preferable to excessive grading of the site in order to create a flat buildable pad. Ron Wilson explained the project using photographs of the lot. He was very concerned about the mass of the house as seen from the street and screening the house from view to offer the property owner some privacy. Most of the rooms of the house are oriented to the canyon view. The civil engineer determined that a crib wall would be the most prudent way to create a building pad and not have a series of walls on this site. Mr. Wilson responded to VC/Zirbes that the entire crib wall will be covered with landscaping. Ron Tashima, Landscape Architect, indicated to VC/Zirbes that a lot of the vines that will be used for landscaping currently' exist in that location. A drip irrigation will be installed using fertilizer injection. He presented examples of commercial structures that are supported by crib walls which are about one year old. In about three years of three good growing seasons the walls will be completely covered. Mr. Wilson explained to C/Ruzicka that the house will be built behind the house in order to preserve the natural terrain. Dan Pierce, GVW Engineering, explained to C/Ruzicka that when the pad is graded down the second story floor would be near street level. With respect to the rear crib wall along` the pool, if the Applicant went with a series of six foot walls in that area there would be about 3-six foot walls with 3:1 slopes in between them. It is likely that there would be a series of four to five walls in the front area where the 25; foot crib wall is proposed and those walls would come out to the street right of way and step down to the house. Mr. Wilson indicated to C/Kuo that he does not know specifically how many crib walls in "The Country Estates" exceed 25 feet. He referred to the picture of the home on Derringer Lane that has a seriesof walls that are 15 to 16 feet. Although the proposed crib wall extends to 24 feet at one point and decreases in height dramatically because the grade falls very rapidly. He believes that this is the best design solution for this particular lot which offers unique design options. Mr. Tahema explained to Chair/Nelson that the landscape plan includes plantings of varying height at the base of the back wall to soften the impact. Chair/Nelson cautioned the landscape architect to avoid invasive species. Char/Nelson opened the public hearing. There being no one present who wished to speak on this item, Chair/Nelson closed the public hearing. C/Ruzicka moved to approve Administrative Development Review No. 200-07, Variance No. 2000-05, Findings of Fact, and conditions of approval, as listed within' the resolution. VCfZirbes seconded the motion and ask for consideration of the following: That Ron Wilson be removed as an applicant from Page 1 of the Recitals and that Condition 5. (d) on Page' 8 include the following language at the end of the sentence: ", including all crib wall landscaping and irrigation prior to the issuance of a Certificate of Occupancy." C/Ruzicka concurred with the amendments. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Kuo Ruzicka, Tye, VC/Zirbes, Chair/Nelson NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: None 9. COMMISSION COMMENTS: C/Tye asked if the matter of reciprocal parking for Togo's has been addressed and how is it that they will be opening shortly. DSA/Joe responded that yesterday Togo's submitted an application to amend their existing CUP application due to the increased occupancy to change from a takeout Deli to an indoor dining facility. They also submitted a Minor Conditional Use application to request outdoor dining which would consist of possible two to three tables with three chairs to each table. This will require increased parking. Part of the application will be to again review the purpose of the Conditional Use Permit that was triggered due to the increase in seating. C/Ruzicka thanked DCM/DeStefano for his heroic attempt to accommodate the Planning Commission with regard to the Montessori Academy. He read in today's paper that the Utilities Commission is conducting open hearings entitled "help write the rules." He asked if the City has any input into something along; these lines. VC/Zirbes commented that colorized architectural drawings provided a much clearer picture of proposed projects. 10. INFORMATIONAL ITEMS: 10.1 Public Hearing dates for future projects. As indicated in the agenda matrix. DCM/DeStefano pointed out that the Planning Commission presently has no items scheduled for its August 22, 2000 meeting. No items are scheduled or anticipated. Staff recommends that the Planning Commission go dark on that evening and meet again on the regular meeting date of September 12, 2000. The Commission concurred to go dark on August 22, 2000. DCM/DeStefano explained thata notice will be posted re: anticipated lack of quorum for August 22, 2000. DCM/DeStefano reported thatAssocP/Lungu is doing well following surgery on her left wrist last week. 11. SCHEDULE OF FUTURE EVENTS: As listed in the agenda. .. J - '� CITY OF DIAMOND BAR MINUTES OF THE TRAFFIC AND TRANSPORTATION COMMISSION JUNE 8, 2000 CALL TO ORDER: Chairman Morris called the; meeting to order at 7:07 p.m. at the South Coast Air Quality Management District Hearing Board Room, 21865 East Copley Drive, Diamond Bar, California. PLEDGE OF ALLEGIANCE: The audience was led in the Pledge of Allegiance by Chairman Monis. ROLL CALL': Commissioners: Chairman Roland Morris, Vice -Chairman Virginkar, and Commissioner Jack Istik. Commissioners Joseph Kung and Joyce Leonard -Colby were excused. Also Present were: David Liu, Deputy Director of Public Works, Frank Hess, Public Works Supervisor; Rose Manela, Associate Civil Engineer; Sonya Joe, -Development Services Assistant, and Sharon Gomez, Administrative Secretary. I REORGANIZATION OF THE TRAFFIC AND TRANSPORTATION COMMISSION: Commissioner Istik nominated Commissioner Morris to serve as Chairman of the Traffic and Transportation Commission. The nomination was seconded by Commissioner Virginkar. Without objection, the nomination was unanimously approved by Roll Call vote. Chair/Morris nominated Commissioner Virginkar to serve as Vice -Chairman of the Traffic and Transportation Commission. The nomination was seconded by Commissioner Istik. Without objection, the nomination was unanimously approved by Roll Call vote. II APPROVAL OF MINUTES: A. Minutes of April 20, 2000 C/Istik moved, VC/Virginkar seconded, to approve the minutes of April 20, 2000 as submitted. Without objection, the motion was so ordered with Chair/Morris abstaining. 2. Minutes of May 11, 2000.- Continued to the July 13, 2000 meeting. 3. Minutes of Joint T&T/P&R Commissions Meeting of May 11, 2000 - Continued to the July 13, 2000 meeting. III COMMISSION COMMENTS: None Offered. IV PUBLIC COMMENTS: ACE/Manela updated the Commission with respect to mitigation measures for Golden Nugget Avenue and Grubstake Dr. Nina Goncharov, 23621 Gold Nugget Avenue, thanked the Commission for their assistance with respect to speeding on her street. She stated that the speeding has decreased: Ignacio Covarrubi as, 805 Windwood Drive, asked for the Commission's assistance with respect to overflow Metrolink parking along, Washington Street and in his neighborhood. There is no place for residents and their guests to park and the street sweeper no longer visits his area because he is unable to do his job. This excessive neighborhood parking presents safety hazards. He feels that he is a prisoner in his own neighborhood. DDPW/Liu stated that the matter of Metrolink overflow parking on Washington Street and adjacent streets will be agendized for the July 13 meeting. He -indicated that the southwest and southeast corners of Washington Street will be red curbed on Saturday which will address the immediate site visibility concern. In addition, staff will recommend the institution of a parking district in which residents will be provided annual parking permits without fee. Debbie Covarrubias, 805 Windwood Drive, stated that parking at their complex has always been a problem. There is no visitor parking and no additional parking to that provided for each unit. V CONSENT CALENDAR: None VI OLD BUSINESS: A. Comprehensive School Safety Study Update. DDPW/Liu presented staff's report. Staff recommends that the Traffic and Transportation Commission review and discuss the updated information from the respective schools. C/Istik suggested that the city's traffic consultant review the information and provide their input for the Commission's consideration. Chair/Morris pointed out that the Pantera School parking design is outstanding and is a model for what school parking should be. VGVirginkar suggested that the school principals be invited to discuss this matter with the Commission after the matrix is updated and resident input is received. JUNE 8, 2000 PAGE 3 T&T COMARSSION DDPW/Liu said that staff is aware of residents' concerns. Staff is awaiting input from the Sheriff's Department. His concern is about a very extensive outreach to the residents adjacent to the 14 schools in the city. VC/Virginkar suggested that if staff has the information available, that a new matrix could be prepared by school including residents' input. Chair/Morris asked for information regarding crossing guard current and potential crossing guard locations. He further suggested that a staff member or intern schedule 15 minute meetings with each principal during July to discuss what has been done and request input as to what the principal believes needs to be done. VII NEW BUSINESS: 1. Proposed Multi -way Stop Signs at the Intersection of Eldertree Drive and Birdseye Drive. ACE/Manela presented staff's report. Staff recommends that the Traffic and Transportation Commission concur with staff's recommendation to install multi -way stop signs at the intersection of Eldertree Drive and Birdseye Drive and forward its recommendation to the'City Council for approval. John Hoffner, 1504 Kiowa Crest (the intersection of Eldertree Drive and Birdseye Drive), said his family is totally opposed to a three way stop at this intersection because the uphill traffic would be stopped directly in front of his mailbox on Kiowa Crest. He said he has lived at this residence for about seven years and he is very concerned about the safety of his five year old daughter due to the traffic on Kiowa Crest and Birdseye Drive. The main problem is downhill traffic and the visibility on Birdseye Drive from Eldertree Drive is very limited However, the visibility on Kiowa Crest from Eldertree Drive is quite adequate. He is concerned about the potential increase in noise and exhaust pollution and that such a measure will decrease his property values. His neighbor who lives across the street is also opposed to having stop signs at this intersection. There is a problem of speeding vehicles. However, it is mainly downhill traffic that speeds. He said he believes the city needs to gather more data before making this decision. He asked to know how many tickets the Sheriff's Department has issue for downhill traffic from Birdseye Drive on Kiowa Crest. He asked the Commission to consider other options such as caution signs, speed hump and increased use of radar on Birdseye Drive. He suggested that the Commission consider a two-way stop instead of a three way stop. ACE/Manela responded to VC/Virginkar that currently, there are no warning signs on Eldertree Drive. VC/Virginkar suggested that warning signs be placed on the street and direct the Sheriff's JUNE 8, 2000- PAGE 4 T&T COMMISSION Department to increase enforcement as a first step. Chair/Morris said he would like to have data from Deputy Perkins regarding enforcement statistics in the area. He asked staff to provide the advantages and disadvantages of'a one-way stop on Eldertree Drive and to provide a map that indicates existing signage and locations for potential signage. John Hoffner returned to state that when he moved into his house there was a stop sign on Eldertree Drive: Following discussion, the Commission concurred to request that staff provide ,additional information on this matter for further consideration at its July 13 meeting. 1. Prospectors Road Speed and Traffic Concerns: ACE/Manela presented staff's report. Staff recommends that the Traffic and Transportation Commission receive public testimony and discuss possible mitigation measures. Brian Worthington, 216 Prospectors Road, stated his concerns regarding the speeding vehicles on his street. He presented a letter to the Commission outlining his random sampling of 50 vehicles on May 23, 2000 from 7:00 a.m. to 8:30 a.m. and another 50 vehicles from 4:00 to 6:00 p.m. on the same day. Many children live and play in the area and he is very concerned about their safety. Chair/Morris, asked staff to consider determining the counts of residential traffic and cut' -through traffic. ACE/Manela stated that the speed trailer will determine this information. Staff has asked the Diamond Bar/Walnut Sheriff's Station to place the trailer in three or four areas on each side of Prospectors Road during the next month. VC/Virginkar asked staff to consider the option of striping the median to give the appearance that the street is narrower. Chair/Morris asked staff to review the signage on Prospectors Road. VC/Virginkar asked for a map showing the distance between stop signs, placement of signage, etc. VIII STATUS OF PREVIOUS ACTION ITEMS: JUNE 8, 2000 PAGE 5 T&T COMMISSION DDPW/Liu stated that at its May 16 meeting, the City Council concurred with the Traffic and Transportation Commission's recommendation for No U -Turn signs at Gold Rush Drive and the Diamond Bar Boulevard frontage road. The signs have been installed. Staff is observing the conditions to determine the compliance rate and the timing of the traffic signal at the intersection. The City Council also approved the Commission's recommendation to prohibit commercial vehicles from parking along Lemon Avenue and Earlgate Street. The signs were installed two weeks ago and have been very effective. The Council also approved the contract for Area 2 Slurry Seal, the area west of Diamond Bar Boulevard north of Pathfinder Road and Golden Springs Road toward the northerly city limits. On June 6 the City Co between Pathfinder Road contract to Sullivan Miller for the Brea Canyon Road street Y project and Golden Springs Road in front of Standard Pacific's development: The Council also awarded a traffic signal maintenance contract to Signal Maintenance, Inc. Currently, the signal maintenance is being provided by the County of Los Angeles Public Works Department. In addition, the Council awarded the construction contract for the San Leandro Drive/Chinook Place/Ballena Drive/Covered Wagon Drive Neighborhood Drainage Improvements. DDPW/Liu reported that on May 23rd CalTrans held a public hearing on the SR 60 HOV lane project between Interstate 605 and Brea Canyon Road. Tentatively, construction is slated for September 2004 to June 2007. As a part of this project, sound walls will be constructed in Diamond Bar along Flintgate Drive and Moonlake Street. On June .1" CalTrans held a public hearing on the SR 57/60 Weave Improvement and HOV Lane Connector project. An elevated structure will be constructed for HOV lanes only beginning September 2002 and ending September 2005. CalTrans is proceeding through the environmental document process at this time. On May 30t the City Council held a special meeting on the proposed Industry East Project which he explained to the Commission. The Council has formed an Advisory Committee with Council representatives Mayor O'Connor and Council Member Huff serving. Council has asked for volunteers from the community to serve on the committee. IX ITEMS FROM COMMISSIONERS None offered. X ITEMS FROM STAFF: 1. Monthly Traffic Enforcement Update: April/May 2000. 2. Gold Nugget Avenue/Grubstake Drive Update. Report presented during the Public Comments portion of this meeting. (See Item IV.) XI INFORMATIONAL ITEMS: A. Future Agenda Items - as listed. JUNE S, 2000 PAGE 6 T&T COMMISSION DDPW/Liu stated that in addition to the two items listed for July 13the following four items have been continued to that meeting: 1) Washington Street parking issue 2) Comprehensive School Study update 3) Eldertree/Birdseye mitigation recommendations 4) Prospectors Road speed and traffic concerns. XII SCHEDULE OF FUTURE CITY MEETINGS AND EVENTS: As agendized. ADJOURNMENT: Chair/Morris moved, C/Istik seconded, to adjourn the meeting to 6:00 p.m. on Thursday, July 13, 2000. There being no further business to come before the Traffic and Transportation Commission Chair/Morris adjourned the meeting at 9:21 p.m. to 6:00 p.m. on Thursday, July 13, 2000. Respectfully, /s/ David G. Liu David G. Liu Secretary Attest: -/s/ Roland Morris Chairman Roland Morris l CITY OF DIAMOND BAR MINUTES OF THE TRAFFIC AND TRANSPORTATION COMMISSION JULY 13, 2000 CALL TO ORDER: Chairman Morris called the meeting to order at 6:13 p.m. at the South Coast Air Quality Management District Hearing Board Room, 21865 East Copley Drive, Diamond Bar, California. PLEDGE OF ALLEGIANCE:' The audience was led in the Pledge of Allegiance by Chairman Morris. ROLL CALL: Commissioners: Chairman Roland Morris, and Commissioners Joseph Kung and Joyce Leonard -Colby. Vice -Chairman Virginkar and Commissioner Istik were excused. Also Present were: David Liu, Director of Public Works; Rose Manela, Associate Civil Engineer; Linda Smith, Development Services Assistant, and Sonya Joe, Development Services Assistant, John Easin, Engineering Technician and Sgt. Bill Flannery. II COMMISSION COMMENTS: None Offered: III APPROVAL OF MINUTES: A. Minutes of May 11, 2000. .C/Leonard-Colby moved, C/Kung seconded, to approve the Minutes of May 11, 2000 as corrected. Without objection, the motionwasso ordered. 2. Minutes of Joint T&T/P&R Commissions Meeting of May 11, 2000. C/Leonard-Colby moved, C/Kung seconded, to approve the Minutes of May 11, 2000 as corrected. Without objection, the motion was so ordered. 3. Minutes of June 8, 2000. Continued to August 10, 2000. I IV PUBLIC COMMENTS: Joe Beck, 21109`Gemdal Street, asked for consideration of a pedestrian crossing across Brea Canyon Road at Gemdal Street. He complained about semi trucks making illegal U-turns in that area. DPW/Liu indicated that staff will monitor the area and report back to the Commission. V OLD BUSINESS; 4. Proposed Multi -way Stop Signs at the Intersection of Eldertree Drive and Birdseye Drive. AE/Manela presented staffs report. Staff recommends that the Traffic and Transportation Commission receive public comments and discuss the traffic concerns. John Hoffner, 1504 Kiowa Crest, continues to oppose a three-way stop sign at this intersection because he does not like the idea of garbage trucks, school buses, delivery truck and vehicles stopping in front of his house and making additional noise starting up from a dead stop. He is concerned about the speed of the downhill traffic. However, he is not necessarily concerned with the speed of the uphill traffic. His suggestion was to install a two-way stop. He said he attended a seminar in Monrovia last month where he observed a two-way stop at the corner of Canyon Drive and Scenic Drive. He spoke with Don Barker, Monrovia's traffic engineer, telephone number 932-5557, who advised Mr. Hoffner that the intersection had been signed that way since 1990 and that there have been no reportable accidents at that intersection in the past three years and uo reports of serious problems during the past five years. ` He reiterated that he would prefer cautionary signs for the downhill traffic in lieu of stop signs. He presented the Commission with a picture of the Monrovia intersection. AE/Manela responded to C/Kung that there have been no reportable accidents at the intersection of Eldertree Drive and Birdseye Drive. DPW/Liu indicated to Chair/Morris that there according to the City's records, there was never a stop sign at the intersecting leg. There may have been a stop sign at that location some time prior to incorporation. The originator of the request for a three-way stop sign installation was not present at the previous meeting. She is the only person who has made such a request. Staff can look into the installation of warning signs along Kiowa Crest and Birdseye Drive. Chair/Morris asked staff to present its recommendation to the Commission regarding installation of a stop sign at Eldertree Drive only. 5. Prospectors Road Speed and Traffic Concerns. AE/Manela presented staff's report. Staff recommends that the Traffic and Transportation Commission receive public testimony and discuss possible mitigation measures.... Samuel E. Kazarian, 318 S. Prospectors Road #40, stated his concern about the hazards of the road curvature and downhill slope turning right onto Prospectors Road from Golden Springs JULY 13, 2000 PAGE 3 T&T COMNIISSION Road. It is difficult to exitthe condominium complex onto Prospectors Road in order to get to Golden Springs Road due to the oncoming traffic. He said that perhaps a caution light or stop sign would help residents of the complex. Douglas Renfro, 329 N. Prospectors Road, said there is a problem with commuter cut through traffic exceeding the speed limit on his street, particularly during the morning hours of 6:00 a.m. to 9:00 a.m. and the peak p.m. hours. People run the stop sign at Eaglespur Road. He is aware that the speed trailer was placed on his street but is not aware of the outcome. Although he has not witnessed an accident he has seen many close calls. In addition, there are more children in the neighborhood and he is concerned for their safety,< DPW/Liuresponded to Chair/Morris that within this year's budget is a capital improvement project expenditure for the resurfacing of Prospectors Road between Sunset Crossing Road and Golden Springs Road. It is possible that during the design phase measures can be instituted to solve some of the concerns voiced by the speakers. Chair/Morris suggested that Mr. Kazarian ask his homeowner's association to send their written comments to the City. C/Leonard-Colby asked staff to contact the Fallcr eek Homeowners Association to advise them about the rehab project. DPW/Liu stated that typically, the roadway improvement project process includes meeting with the residents to inform them about the upcoming project and to solicit their input. - C/Kung recommended consideration of a "No Left Turn" installation on Sunset Crossing Road during a.m. peak hours. Chair/Morris said that sometimes such mitigation measures designed to prevent cut through traffic can prove to be a burden to the residents. VI NEW BUSINESS: 3. Washington: Street Permit Parking. DSA/Joe presented staff's report. Staff recommends that the Traffic and Transportation Commission concur with staff's recommendation to create Preferential Parking District No. 3 and forward said recommendation to the City Council for approval. Michael Kellogg, 1034 Jason Place, said he and his wife chose to move to D.B. about a year and JULY 13, 2000 PAGE 4 T&T COMMISSION a half ago primarily because of its proximity to the train. Originally there was no problem with parking. However, success of the station created the need for expansion. He outlined how the problem has escalated to the point where Washington Street and Windwood Drive have become burdened by overflow parking. Although he sympathizes with the residents, he and others need parking in order to use the train. He believes D.B. should support train commuters. He is embarrassed that his City encourages him to take the train but will not do its part to share the burden of supporting the station. He recommended the following: l) Permit park the Windwood Drive. neighborhood only and leave Washington Street open; 2) Offer to help expand the City of Industry lot; 3) arrange shuttle service with Foothill Transit to and from D.B. Park N Ride and expand those services if necessary, and 4) encourage the City of Pomona to complete their station. Brandon Reeder, 23601 Diamond Bar Boulevard A7, said he is against the recommendation to install permit only parking restrictions along Washington Street and nearby residential streets. He takes the train every day. Today the lot was full by 6:58 a.m. By the time he arrives at the station the parking lot is full. In addition, Washington Street is nearly full and he has no alternative but to park in the residential neighborhoods. He has no problem with a parking permit system in the Windwood district. The City of Covina has a free parking lot with a shuttle service and a pay lot. He pays City and County taxes. The Metro Link fees have recently, increased and he feels residents should not have to pay additional fees for. parking on public streets: Rose Hoskins, 733 Windwood Drive, said that she has difficulty leaving her residence in the early morning hours due to the Metro Link overflow parking on Washington Street. Monica Walker, 910 N. "Golden Springs Drive, has lived in D.B. for .approximately 15 years and is pleased that Metro Link is available to the community. She understands that a number of carpoolers regularly park in the Metro Link lot. She suggested that passengers of the Metro Link receive a sticker to place in their window at the time of their permit purchase. People who purchase Metro Link permits should be granted preferential parking in the lot. Metro Link is reaping the benefit from the station and she feels that the City of Industry and D.B. should be discussing this matter with them to encourage Metro Link to provide additional parking. Melody Chu, 758 Summerwood Avenue, favors parking permits for Washington Street and nearby neighborhoods as a temporary solution. The City of Industry should provide sufficient parking for their riders: Elisabeth Bonner, 743 Summerwood Avenue, said that during daylight savings hours she walks to the Metro Link Station. However, when the time changes she drives and she parks on Washington Street. She agrees with the residents who do not live in the area that parking should be allowed. She believes additional parking should be encouraged on Brea Canyon Road and that perhaps a traffic signal could be installed on the City of Industry side of Brea Canyon Road to allow foot traffic to cross the street. Steven Jones, 2237 Monteclaro Drive, Chino Hills, has ridden the Metro Link for about five or six years and he has parked on Washington Street for the past two years which has allowed him to be closer to the train. He agrees that parking in a residential area is a burden to the residents. He has no problem with residential parking on residential streets. However, Washington Street should not be a problem because of the industrial businesses along the street and he believes Washington Street and Brea Canyon Road should remain open to anyone, who wishes to park on those streets. Anthony Gonzales, 852 Silver Fir Road, said he is not in favor of permit parking and would like to see other solutions attempted before permit parking is instituted. Most of the problem with parking is from the residents within the Silver Fir area who use their garages for storage rather than for parking of vehicles. He suggested that parking spaces along Washington Street and Brea Canyon Road be painted to maximize the number of parking spaces. Ignacio Covarrubias, 805 Windwood Drive, said the residents fought hard to get parking banned on Brea Canyon Road. He proposed that the City of Industry provide shuttle service to Metro Link. He is tired of living under the present conditions and he feels like he is a prisoner in his own home because of Metro Link. The residents also fought hard to,eliminate commercial parking on Washington Street. He understands` that the City of Industry will be grading additional land adjacent to.the Metro Link parking to -accommodate additional vehicles. He does not believe a parking permit system will work in his neighborhood. Written comments by Ed Bravo, 20365 Julliard Drive, who arrived after this item was discussed: "To the extent that Diamond Bar as well as, Walnut residents commute to work, I believe the parking lot at theMetro Link station should be expanded to meet the (parking) needs. The commuters make no noise or disturbance on Washington Street. They walk quietly to their cars on that street which is walled off from residents. (He is against the recommendation to establish a Preferential Parking District.) DPWILiu stated that staff received one letter and two telephone calls this afternoon regarding this matter. DSA/Joe stated that the City received an e-mail from Daniel Mackenzie, resident of D.B. who recommends that the streets within the Windwood Condominium Complex be posted "Residential Parking Only." He supports staff's recommendation to create a Preferential Parking District and believes that waste removal trucks have a difficult time getting to the curb to handle garbage cans and street sweepers never reach the gutters because of the car lined streets. The. City received a call from Mr. Ron. Raynard who indicated that he does not believe a Preferential Parking District is appropriate and that it may cause more problems because it may be more of a temporary solution than a permanent solution. He is unable to attend tonight's meeting but will forward a letter to the City. Staff also received a call from Ben Park, a Chino Hills resident, who feels; that permit parking will impact the convenience of ridership on the Metro Link and does not believe that a Preferential Parking District should be formed. DPW/Liu stated that Mayor O'Connor recently contacted the Mayor of the City of Industry to discuss- this situation. D.B. has made several requests for the City of Industry to consider such as the opening' of the easterly side of Brea Canyon Road to allow parking and the expansion of the existing Park N Ride lot. As part of the Industry East project the land north of the existing parking lot is to be graded for creation of approximately 600: additional parking -spaces. No time line for this proposed project has been provided. Further, D.B. has proposed tandem parking within the existing parking lot. Although the City of Industry has made no formal commitment, they have indicated that they will work with D.B. toward mitigation of the situation. The intent of the proposed Preferential Parking District is to insure that the residential neighborhoods are protected and that the needs of the residents as well as, the commuters are balanced. Chair/Morns suggested that a shuttle service might provide short term relief. In addition, the opening of the Pomona station would likely offer additional relief. He thanked residents for speaking on this matter this evening. He said he is not comfortable with making a recommendation to the City Council at this time. He would like to have additional information such as time line on any additional Metro Link parking, either an extension to the existing parking lot and/or parking along Brea Canyon Road, exploration of the possibility of a city permit parking lot, shuttle service, the exact date of the opening of the Pomona Metro Link and its impact to D.B./City of Industry Metro Link, contact with Metro Link with the possibility of lifting the zone fee which would cause additional ridership to use Pomona and a survey of current ridership. C/Leonard-Colby concurred with Chair/Morris. However, she would discourage parking on Brea Canyon Road due to the safety hazards for the pedestrian traffic. She is not prepared to make a recommendation to Council until she has further information and additional dialogue between staff, Council and City of Industry and Metro Link has taken place: C/Kuo said he would encourage parking along the easterly portion of Brea Canyon Road. Shuttle service from car pool lots in D.B. is a good idea and should be pursued. He respects the resident's right to the protection of their,privacy. Chair/Morris thanked the speakers for their input. He stated that it is greatly appreciated when residents offer their suggestions. Q Parking Restrictions for Evangelical Free Church on the east side of Diamond Bar Boulevard between Cherrydale and Crooked Creek for Sundays. ET/Ilasin presented staff's report Staff recommends that the Traffic and Transportation Commission receive public testimony and discuss any concerns: Van Hardy, 3193 Cherrydale Drive, has lived in his home since 1981. The problem is the lack of view of oncoming traffic moving west on Diamond Bar Boulevard toward Brea Canyon Road. He spoke with his neighbors who favor this mitigation measure. The church needs additional parking and the residents are willing to have members park in their` neighborhood rather than on Diamond Bar Boulevard: Ed Shockley, 20845' Northampton, speaking on behalf of Pastor Mark Hopper, said the church is willing to give up parking on Diamond Bar Boulevard in favor of being able to park in the adjacent residential neighborhood. The church appreciates the residents' offer. Chair/Morris explained that if parking on Diamond Bar Boulevard presents a safety hazard to the Cherrydale residents entering Diamond Bar Boulevard that is the issue and there is no trade off of parking in a residential neighborhood. The safety issue supersedes approval of street parking. If the City needs to red curb that area, so be it. If the neighbors are gracious enough to say that the church can park on their streets on particular days, it is of no concern to the Traffic and Transportation Commission and the City. Martha Bruske said she is concerned about the entire City. She is amazed that the City issued a permit to the Church but did not allow for sufficient parking to accommodate their membership. It is a very bad precedent that a small group of residents can make a trade off with any commercial venture for parking. She believes the church should have to make its own arrangements to provide for adequate parking. C/Leonard-Colby complemented the residents for working with the church to solve this problem. She does not believe itis the City's intent to clog the streets on an ongoing basis. This involves 12 vehicles parking on residential streets a few days a year. This is a limited use for a limited' period of time and it is not an abuse. C/Kung moved, Cileonard-Colby seconded, to recommend installation of "No Stopping Anytime" signs along the westerly side of Diamond Bar Boulevard between Cherrydale Drive and Crooked Creek Drive. Parking of vehicles on Sundays between 6:00 a.m.'and 10:00 a.m. on the westerly side of Diamond Bar Boulevard between Cherrydale Drive and the first driveway of Evangelical'` Free Church will remain intact. Motion carried by the following Roll Call vote: JULY 13, 2000 PAGE 8 T&T COMMISSION AYES: COMMISSIONERS: Kung, Leonard -Colby, Chair/Morris NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: Istik, VC/Virginkar VII STATUS OF PREVIOUS ACTIONS ITEMS. None IX ITEMS FROM COMMISSIONERS None offered. X ITEMS FROM STAFF: 1. Monthly Traffic Enforcement Update: June 2000 compared to June 1999. Report by Sgt. Flannery. Chair/Morris asked Sgt. Flannery to pass along to his colleagues the Commission's appreciation for enforcement in the school zones. 2. School Safety Study Update. Report by DSA/Smith: Chair/Morris reiterated his request for feedback on crossing guards and how many crossing guards are assigned at each school. He said he believes that Diamond Point and Golden Springs Elementary School. If a crossing guard was placed at the back of the school it would eliminate a lot of the traffic problems because more and more parents would pick up their children in that location. He said he was told by a resident who lives at the corner of Cool Springs Drive and Cold Springs Lane at Castle Rock Elementary School that her child has to fight for the right to cross the street in that location. He asked staff to determine whether there is a designated crosswalk at that location. C/Kung recommended that staff work with every school to provide a drop off area. DPW/Liu pointed out that Attachment #2 contains the information requested by Chair/Mord s. Chair/Morris thanked staff and asked them to consider a second crossing guard at Golden SpringsElementarySchool: DPW/Liu responded that staff will discuss the matter with the school. He commented on the excellent circulation design for Pantera School Most schools in Diamond Bar were originally designed to be neighborhood schools. Staff and the school boards continue to work to improve �'j CITY OF DIAMOND BAR MINUTES OF THE PARKS & RECREATION COMMISSION HEARING BOARD ROOM OF S.C.A.Q.M.D. 21865 Copley Drive AUGUST 24, 2000 CALL TO ORDER-.- Chairman RDER:Chairman Finnerty called the meeting to order at 7:04 p.m: PLEDGE OF ALLEGIANCE: The audience was led in the Pledge of Allegiance by Chairman Finnerty. ROLL CALL: Present: Chairman Annette Finnerty, Vice Chairman Patty Anis and Commissioners Mark St. Amant, Jeff Hull and Marty Torres. Staff: Bob Rose, Director of Community Services; Gary Ohvas, Recreation Superintendent and Debbie b e Gonzales, Administrative Secretary. MATTERS FROM THE AUDIENCE: None 1. CONSENT CALENDAR: 1.1 Minutes of July 27, 2000 regular meeting. C/Torres moved, VC/Anis seconded, to approve the minutes of the July 27, 2000 regular meeting as corrected. Motion approved by the following Roll Call vote: AYES: COMiVIISSIONERS: Torres, VC/Anis, Chair/Finnerty NOES: COMMISSIONERS: None ABSTAIN: COMMISSIONERS: Hull ABSENT: COMMISSIONERS: None 2. INFORMATIONAL ITEMS: 2.1 Recreation Report: RS/Olivas presented staff's report for the following events: AUGUST 24 2000 PAGE 2 PARKS & REC COMIVIISSION 1. Youth Baseball 2. Cross Country 3. Adult Basketball 4. Adult Softball 5. City Employees Softball Tournament 6. Contract Classes 7. Tiny Tots 8. Day Camp 9. Youth Excursion 10. Volunteen Program 11. Adult Excursions 2.2 Community/Civic Center Update. CSD/Rose presented staff's report. He reported that staff and the City Council completed interviews ro P, with the architect teams.. Of the 17 proposals received, six were invited to the interviewP rocess. Committee member ratings have been presented to the City Manager. An award of contract is slated for the September 5 City Council meeting. Site survey, topo and geological tests are pending. According to the architects, the process to complete construction may take between two and three years. 2.3 Trails Master Plan Update. CSD/Rose presented staff's report. The next subcommittee meeting is slated for Tuesday, September 5 at 10:00 a.m. The intent of the meeting is to 'prepare for the September 28 joint meeting. VC/Anis reported that the subcommittee viewed a photographic aerial map of D.B. and surrounding areas and the existing trails. 2.4 Capital Improvement Program Update. a. Pantera Park Ball Field Lights CSD/Rose stated that the contract has been awarded. The contractor is currently in the submittal process. The City's goal is to have the project completed by the end of October (daylight savings time), AUGUST 24 2000 PAGE 3 PARKS & REC COMMISSION 2. Sycamore Canyon Park A.D.A. Retrofit CSD/Rose reported that staff is currently reviewing conceptual plans for presentation to the Commission. 3. Sycamore Canyon Park Landslide Repair CSD/Rose stated that the City Engineer is currently reviewing the construction documents. Following review, the documents will go back for correction and the earliest that they could go out to bid is the second meeting in September. The question is whether the work can be finished prior to the rainy season or whether it is advisable to wait until Spring. 4. Peterson Park Irrigation and Drainage Correction CSD/Rose indicated that this project will be considered after the Pantera Park ball field light project is completed. 2.5 Diamond Bar Community Foundation - Oral Report. Chair/Finnerty presented the report. An October 14 workshop is tentatively scheduled. Foundation members worked the food booth at the last two Concerts in the Park. The Foundation is seeking a senior representative from one of the three senior groups. The Foundation is looking into ,obtaining shopping cards for people who shop at Albertsons: Albertsons will give back a; percentage of purchases up to $1800 per quarter. 3: OLD BUSINESSe 3.1 Skate Park. CSD/Rose reported that the Diamond Bar Skate Park opened to the public on July 15. This agenda item provides the Commission the opportunity to comment on its observations of the use of the Skate Park. v CSD/Rose responded to Chair/Finnerty that approximately 50 citations have been issued. Staff is awaiting a report from the Sheriff's Department on each citation issued. The Sheriff's Department has received complaints from parents about their children receiving citations. The District Attorney has requested a copy of the City's adopted ordinance. AUGUST 24,2000 PAGE 4 - PARKS & REC COMMISSION Chair/Finnerty said she observed 40-50 kids using the skate park on Tuesday evening at about 7:30 p.m. She counted four or five who were wearing full safety equipment. CSD/Rose stated that flyers will be distributed to all schools in September. The flyer will indicate that the park is open, the hours of operation, the required safety equipment and the rules of the skate park. A letter to the parents asking for their help will be on the reverse side of the flyer: Chair/Finnerty stated that the kids who do not want to wear their equipment will not take the flyer home. She suggested that the information be published in the local publications. C/Hull explained that the middle schools have packets that are sent home with students on a weeklybasis. Chair/Finnerty suggested that the City hang a trash receptacle on the back side of the wrought iron. CSD/Rose indicated to Chair/Finnerty that the next report from Coca Cola will be after the next quarter, end of September. The machines are being serviced more frequently and there have been no complaints of late. 4. NEW BUSINESS: 4.1 Agenda for September 5 2000 Joint Study Session with City Council - 5:00 p.m., Room CC -8. CSD/Rose reported that The Parks and Recreation Commission and the City Council will have a joint study session at 5:00 p.m. on September 5, 2000 in Room CC -8 at the SCAQMD. The purpose of the Study Session is to discuss issues related to Parks and Recreation. Staff recommends that the Commission provide topics for ; consideration for discussion at the joint Study Session. 'I 1. 4h of July Concert In The Park (Rose) I 2. Site D/Larkstone Park (Rose) 3. Skate Park (Finnerty) 4. Trails Master Plan - Council Input (Finnerty) AUGUST 24, 2000 ' PAGE 5 PARKS & REC COMMISSION 5. Roller Hockey Court Availability (St.Amant) 6. Location for City Birthday Celebration (Hull) 7. Pooch Park 4.2 Chamber of Commerce Request for Extended Light Usage at Peterson Park. CSD/Rose stated that the Diamond Bar Chamber of Commerce will be hosting their Casino Night at Peterson Park on Saturday, April 28, 2001. The event is scheduled to be conducted from 6:00 pm. until 10:30 p.m. The Chamber is requesting that the ball field lights remain on until 11:30 p.m. on Saturday, April 28, 2001. Staff recommends that the Parks and Recreation Commission,recommend approval to the City Council the extended use of the ball field lights at Peterson Park on Saturday, April 28, 2001 until 11:30 p.m. VC/Anis moved, C/St. Amant seconded, to recommend that the City Council approve the extended use of the ball field lights at Peterson Park on Saturday, 'April 28, 2001 until 11:30 p.m. Without objection, the motion was so ordered. 4.3 Concerts in the Park - Summer, 2001. CSD/Rose reported that the summer concerts in the park is scheduled to be held on Wednesday evenings for 10 weeksduring the summer of 2001. This schedule will normally include Wednesday, July 4 as a regular concert date. Because this date is a holiday, it needs to be determined if a concert will be held on July 4, 2001. C/Hull moved, C/St. Amant seconded, to recommend to the City Council that a 4'h of July_ Concert with music appropriate to the holiday be held at Sycamore Canyon Park and that a pyrotechnics display immediately follow the concert. Without objection, the motion was so ordered. RS/Olivas reported that staff is waiting to hear back from the Long Beach Junior Concert Band regarding their availability for the 4th of July. Chair/Finnerty said she likes the Long Beach Junior, Concert Band but she would prefer a more forceful group. AUGUST 24, 2000 PAGE 6 PARKS & REC COMMISSION RS/Olivas suggested a swing group that would include patriotic music. He assured the Commission that he would arrange for an excellent patriotic music group: Chair/Finnerty concurred with RS/Olivas that the New Years Eve group was very well received. 4.4 Future C.I.P Project Schedule. CSD/Rose stated that the Parks Master Plan includes a 13 year schedule of potential C.I.P. projects to improve the parks in Diamond Bar. The Commission reviews this schedule on a regular basis to ensure that the most urgent needs of the community are included on this schedule. The City Council recently adopted its goals and objectives for the 2000/01 Fiscal Year. The City Council's' goals and objectivesinclude some projects that are not on the Parks Master Plan schedule of improvements, including the construction of more basketball courts at mini parks, picnic shelters at Pantera Park and the development of a pooch park. Staff recommends that the Commission review the City Council's goals and objectives related to Parks and Recreation and incorporate them into the Parks Master Plan C.I.P. project schedule and recommend adoption of the revised schedule. Chair/Finnerty said she believes the picnic shelters at Summitrid e Park could g be eliminatedbecause of the pending Community/Civic Center. C/St. Amant suggested that the following three sites could be considered for mini parks: 1850 S. Diamond Bar Boulevard (small piece of land next to a creek between the condominiums and the apartments on the east side of D.B. Boulevard); Clear Creek Canyon Drive between Cleghom Drive and Banner Ridge Road across from the condominiums; comer of Goldrush Drive and Diamond Bar Boulevard. I� C/Hull said he likes the idea of the basketball courts and he would like to have more information on the picnic shelters and pooch park. Chair/Finnerty summarized that the Commission believes that it is a good idea to start moving forward with the basketball courts. The picnic shelter at Pantera Park is a good idea and a pooch Park shall be considered dered further intoe the. future. 5. ANNOUNCEMENTS missing C/Hull . apologized for � g the last meeting.He provided .notes on his walk through. i Peterson Park to the Chairman and his notes are at home. He completed a walk through of I AUGUST 24 2000 PAGE 7 PARKS & REC COMNIISSION Heritage Park on August 18. The basketball court at Heritage Park is in terrible condition and he was told it is slated to be resurfaced. CSD/Rose responded that the basketball court is scheduled for resurfacing this fiscal year. Staff is receiving proposals at this time. The overhanging trees have been trimmed and sand has been added to the tot lot. C/Hull remarked that the barbecues at Peterson Park are clean. He said that he chastised' Mitch (True Green) for snubbing the Commission at its July meeting and for not sending someone in his place. CSD/Rose reported that the contractor has made it clear that they want to continue working for Diamond Bar. Both people they lost were from other companies that True Green acquired. and benches ant said need painting n walked and some o th Sycamore yon Park which looked good. The picnic tables P g e table tops need to have the wood flipped over. The storm grate at the bottom of the stream has been propped open by a big log which needs to be moved. VC/Anis said she noticed that facing north on Longview Drive and Grand Avenue the orange median diamond sign has graffiti on it. The stop sign at Brookwood Drive on Longview Drive has a splash of paint or some foreign substance on it. The median off of Golden Springs Drive on Grand Avenue is very brown. She and C/St. Amant attended the City Birthday Celebration meeting this morning during which parking logistics, keeping the band and carnival going for an additional hour in the evening and possibly moving the event to Pantera Park were discussed. The city is talking about purchasing canopies to rent to food' vendors. Chair/Finnerty completed a walk through of Maple Hill Park and Summitridge Park with Mitch. It is impossible to keep regular plants in the planter area around the tot lot at Maple Hill. True Green was supposed to put grass in the area some time ago but it has not been done. They also discussed using the edger on the concrete dividers. The park was generally well maintained. Regarding Summitridge Park, the eucalyptus trees are suffering greatly from insect infestation. At this point not too much needs to be done except to keep the area clean because the community center will likely cause changes to the area. True Green has been able to control the clover and keep the grass greener than it has ever been. C/Hull welcomed C/St. Amant to the Commission who he believes is a good addition to the ..._�x >� l PTT` i1. f 3L rs �t !raj L &Wh; -. RUI Dl"T_ IOf' 12 `21-00"i _._:-. , C.TC0 .a—, _f . PAR Di�. ,, i -. PRL:rAM ffvf+ l v a;..•,��_. i�aL�LT �. Oi�E.,; t«11T �j1-. �} i{ 1��} C7:f? } ��1•�1 LP{T p • i::._ — HER. : t 65 3-9 7OTAI OTA 'IJ P- T AL — -.�.r — — }t1 _ r Q + } 5. r : _ n e _ F _ n t - E r F 37 o LZ Iv A ft i p 7 le - ;tq- QG ''• __-. _ 41 _Y i _ . tT f.;- av-- t - L . a 00 '. CITY 04 DITAII-A _ _ is L+11€i{ Lir 4�`-....ii..._t.:;'ltk" .fir e..{ t r r —"- .�;.�t'_.. .,_,s.t,� _ cr �r.r [ f �1;,-r .._€ ,. Fi. L•.' iT' RIi T! ..v a*-��s� t:2 �HiL i. { .� "�vv'i :tl, l•�vi x-1vYI w e _.T 00 Y, {P. j- T11 t yf —.,, gay {.;�C3 '('i ;. CI PITAC O L r— !'v V11 cpt� Air DheLLrR r. _ - _.. ' J,rI_ L�f.�=- .�.a?—_,. - _. a _•� i`:?,„,..vim.. v -. atm ...,.... ra. L,_. [. Mt - o 1 _ - L V—L .i Trn Tf .. -- f r„ 3: i - e "'- 1.__ Ci ��-. 1:� Ilii” �; r1.- t%�ih, — T .n �.,- 5.0 00 I T,JL Y rt Ac tii T .T L RS 3 .- s f F n Pyr :�.,__. __,� ._.ate_,; G ,y CITY (F DIAMOND T :._._ RUN DATA 1C/12 • �€).i 1 ` a':_'i:` .. G T�-- REGISTER - rL�L-Y:�II r. DUIE THRU=, PREPAID 5 NDiSCI` 1- rE 1 "T . s- r.s__--ay..,� r ],—.�: 't i' ,�J Y t r - :..iff n � 5T � i { 'NT . _—.. ____:._, : _�:; E r ru ,, ,.., _.., Lam.>- ->_: •' - SPORTS i:, 26 TOTALLRr rr • rrn - it it Ir y: TOTAL i a. 739. CA ASSN BF MERKS &WCTMWOFFCLS _ c ri :_ >* r 1 R .. _ - - ..- t_ '.-TOTAL Vg'-'CHERS 125. 0 TOTALTOTAL - F _r - ,-..,.LIFE � 31A ANNL CONF-DOYLE iv/12-1-3 10/ = i• TOTAL a r. C - Ams CMD 51 U4 50. f, TOTAL , M i DES R. i.l 'L_ '-1. CCI -�- - - .., ,,_:_ __-: - tib. 001551C-45227- W45 705 PRY, t K.i- s>•' , -f t �_x .+_ ,rte A 101352 7452 PROF AMS - FUN OEM 33 M3 ho 1-0297 7451 i; z 5 ,t: 01-110-3---'. 1 t 7454IF09PI3 PRDF--E�i'CSs NSFECTION n 5 f062. F17 TOTAL PREPAIDS TOTAL VOUE-11, 71326. jL.-7 .. w TT -1 AL 7 51191 REFUND PK DEPLSUMMI'Tif HUGE R _ D _- TOTAL T 7,01, L. VOIUCKER-S - - 0; E. - TOTAL FREPAIDS, .1 00 T W531042130- - =5 11 a2 .. ?j,r-f1 _ 1 i- L F UNIFRM � lW31nil UNIFORM _-C/S WK10102 1704 TOTAL PREPAIDS I WAIL HERS , - T7 3rVENDOR t_N O . i DUE :. . CITY 0 DIAMOND BIAR, RF N LATE; 10/121206 14:42:29 VO R1 6 T E R' PAGE' 4 DUE Tiffit'Ut 10/17/2000 PREPAID p_Nl,i/SE:CT-AC -PRfjjc,:L--Ti -AICT po 4 ELCRIPTION 1MMICE DE' Al UNT DATE C`hE0-Y','. 0ENTA FE S'PRIP-1.103: -17%* F CECA PlITS-ANSAR! 10,11`8- 23. luf,3' E0140IO-42325- TOTAL PREFAIDIS T--TP,,L V-01"U'll"ClHER' 2,:. OU, TOTAL DUE VENIDOR COCT s - SUPPLE -CEL 40j& j0A7jZk0 .4041 o"! -42. .0,14010 TCT n,"l PREPA: DS 40 7c, TOTk VDUCH�RS 3 DU40j6 VENDI-2' C. C.-ITi" M'.iE Dmp'Ov -NANCE B.A PK 5 0- 0 P -422-111f- 74-9-59 742 9 h5' NT HERITI 75.00 TO i'AL FREPA.I.DS 0 T VOUCHERS 0 A f) T IAL TOTAL DUE VPNIDOR COWER 'DELIVER)." SERVICE 0014)?0-4212!-- 200=0247 DEL!k,.-'ERv' SVCS GENlllE'-.,..%.L 49.50 TOTAL F-F.2-PAIDS; - CIO; T-7� ' DID ; PwL VOUL-E F'zi. 49.5C TOTAL DUE VEn DOR 49 00 nwo 121 01340 MS AMMUMMT AC -'T CLl' rul i 192,00 -A T -i L TOTAL DUE VEE DOR 192.001 7 iC M05114641102ORMU 1 1OM4 li99 PROFtSVE-SAN NDR/CHNOF. 171764i.15 TOTAL PRPAIDS TC7AL VOIjCHEPS' 17 i 76-41 15 TIP! 01U.- VE N C, F 1711641.15 my sm Cm c--::iTE� 7443 SpEc"S. 0 C.--: 4 C.`f, 421 1C, 1047? MOT Aws - som PARK T -DTA,!!,- V011.1-10, ,E --.S 552 4- Trtl DUE vamo". 1,552.40 c-Luus.clo.- 999 FACILITY RN -10-11- RECCREAll ut TOTAL MAIDS I T A 7 VIE', - uz 1,340!J01U --- I ` ` , C OCT-IREIN.11 'A RE 167.40 1011712000 46544 L 71-1-F- 1FREDIDA-T-1.1;- 2-67 48 71 1 PRO 1 77 '7777777,77,r,'� .�n LIN— - - RUN' 1.11-TE:i? 1:t t1;[t RUN' DUE.- T11H.11RUlz = :.,x -. # - 7k t. [ ?, L' T7 � FE PREE -} vi' ... i ECK of ;. 10,1 7jt.i.�il -d[ r_ T .rAI ? •^t 5A65 15 -.E - A -U, I-.-:, .. ..> .: Lam. •s ..- :-: ,. i - n. .,i - :.�A ERMA_ .-- p - t • n 200 O - r r- - HL - :T C fr _= r t 5 1 53 4 20A E ._ CITY OF DIAM i?' ll MR l TC_..a ° :S. Er: i PAGE i it 1r:2/ ii :i !A'.42251 �i•k PREPAID Cil t—C} i - ' ,._ = ry T3ei r.11ii _N O!,_ DATE C"LCk DIAMONDPETTY ° CH '. t a ,E "VA.,, MTdv 14 1 8. 33 0 _— C r _ r f „_? >: r02 IT T GEN _ 3 O _ [ _ . TOTAL ;T I ', _i F - n - ' .. i, r i 4 n + , 1 ,i BAR :. R k .v f —` ..:.{..: �_. ti: u; } i >. 110/17/2000 RD=As- iL r t 1 TOTAL S Lz 89M2 TOTAL11 f..I;^ 1. n 3. �. _ - . s - .. .. :; t -r E�"C '':1 L i, 240 i3 1 0O'D 5555;" 555 AUE, 10/1 /20CIO 559 - _�. .311 k` xi ,3P r{ _ s- -SPONSOR �jt! .lr, if t > `_ — L34" — OM. 0 H!— tt 1 . TA _:: IJ c t DODD SEP MON; ME&OCT 6-8 1M No 1WORM10 4655*3 T' 1 ak_ v .00 DAM DO 1E i __ E1 jpfV. PF TOM FA DID, TOV' DIM VENDOR :i : _ _ _ .. •. • }Okt t HE C VOUCHERS TOTAL 28 J TOTAL !— EXPR' —__ __� 1,. ... i -si FF 99 � e v..z z':�'i mss_.._: EXPRE-3 MAIL UENEINA 42.62 r v, TOTAL M1 „4.36 4 CIT"AY1 DIAMOND BAR r`UN DATA 11CY12 20 r l4f42!29 - tr i ;J}' CE;.. r r Y' _ _ T i 74 PREPAID v'' r�'r r- SL1 u_'_L. AU `-t =dtaOJf_ — DESCRIPTION }- - A,r� .0 +a ATE CHEC}. REN F h._jE,, t i rLa..•JJ. TRI -. -'_'ir"At 3r.... _..}�.aa`-t,xzL t,0 TOTAL k-'—L.._C.-- -.- TOTAL VENDOR n - - r }. _T a 00 __.__ TOTAL FRERAID.-. _ - • TO Z-1CREERS _ '. s. - TOTAL - ` VENDOR FISKT CHOICE COFFEE SEVICE, C =F T -TOTAL PREPAIDS ..L ' j. _ 4 TOTAL DUE VENDMR _ 4.117 5417 -_..L CONCEPTS iNTERIJIET - :. gnonQ SHERIFF STM HOME PACE Mhlloff 5C)!) j FREPAIDS - TOTAL DUE VEKOR. 2118 __ .._sem: RECREATION TOTAL PREEPAIDS TOTAL VOUDERS 18171 TOIAL DUE VENDOR - issil _.CLASS FALL TOI A L PREPAIDS, VOUCHERS TOTALTOTAL _ VENDORI 0 4 - TOTAL WEPAIDI. 0C., I T07-AL VOUCHERS 5153150 TOTAL DUE ..VENDOR AwaB agos REPAIR EVCS-AiE, HERITAGE 212,00 00 TOTAL E u DUE VENDO*;�%, TOTAL2 IN A0 -i CLASS-SUMER TOTALCONTRACT ' a 1.056.00 CITY GF iTS11 NIE BAF _ tom•'?- , C f 7 i'7 4'''T -ACECT C 3 :, , ::.1v7 ..s_. _ PO ::: Y`,' .j,^C _. — F "1Y,f .. 7f t' t t a1..... �._ ��::,_•, al, +siii ... .x.::i: +t TE C iLi.' -'?x _.x_ i SEPT TOTAL FWAIDE 00 f f TAL rFHERS :-; E F r ., 'FI ,.c V OUS 1 NN 1 A , 3 1 PR e ° v — — __ a._: _ air.. u T _ DS us... R ,<f -• .. ;r c ' v. — c. -- w. QQ d.. __ _ 5. _ -1 PLAN CHEEKl_ .L 001�551-45a. - . 5 E- E c- 4 :C HE C K 7,50 'T IT •-- -. fi' : rLIm T 4 t OT i:y- I.n iii: SUPPL 70OLF ui_= -- - 3. isA PREPPIES It - r 156. ?, 51113-151194 —E r .. r TAL T r _ ti 251'U. :: vTOTP 7t TOTAL VOUCHERSr - 00 S5. JF: i I TOW r AL 20011-c rr CLAWALL - rr_6U% a. T .. TOTP - i, .a r ... Uv r = :° i f t O D€t `, i+2c 7y_ RUN DATE10/1212000 14:42:29 DUE TH U: 10!1712000 _ _ '5E :; LT FR ,,firC-r ACCT: Pi? JJ��. v '7t t►t;r* { '3fiir:})�� L}�..L�?5"'TT4i�� OR 4rc". r s� rl}.fy r tNT r r _'C - t r S j, HEDGES TOTAL FREPA IMS TOT`_ VOUCHERS 1. f .;_ '_, - TOTSL P, n 1 ,-.. -T ,• r rVENDOR+ _. ASHLEY si ...i_t! 4 x ! f .- u TOTAL i DS � T n r -, Ti_T rt.,Ey. VENDOR . I OT P = r 1`•. f i TOTALV-01U L - TrT{ F _ 972. 001 nt E J 10231 _ ±-72 s'J_ 65MBG TOTAL PREP TOIAL OLE VE.-NEOR 2,M302 _ 2 .. 10` - _ �: ,. 'TDT Wo Ham 1 : 1 •H -. Di-i-E '_3 5 1 75.74 7534 T n VOU:HERS TOTAL DUE O_ 61-1 TOTAL FR.EFQIDS :.;._ .- _ ' _ TOTL 2 . ¢! i1 ` .f,r.2::_ ,$-429DUE 1 R1.._1S _C P_+ St - TH :y i - 'R - -A[�ET=t.J_Eii ` 1 N4 yi ,-E. :sL:_R iT._iN � DATE FUND/, C7 2Li 1 .Rn T T -_Ncz .zT s3fv IN T` F 018-020 -. 46 00i = , L_ z97, .v:L-.aimas_tv n ; TRYAL PREP.-All-125_, t L TOOUCHERS 'E V7 TOTAL D]2 tNDOR 2-3,76906 T 3' 000 v TOTAL F-REPAlb-is 2,013.4 a , 7' itVENDOR'. ND _2 001535045310— 1 C-!499 91 ADULT EXCRSTSOLYMS iTOTAL PRE 7 3 .M -CH C ^I E -: I= VALLEY DMILY -�51ULLET41'1111 �.: . _ ,. .., r. L. TOTAL ,'RE is LL. ! F _ 5- TOTAL t 3 { 45 ...^ r EF 01 PIC L EM�RSH;J - ESE 0 .t _ :.y + VOUCHERS 200. oo TOTAL. - (.r t i3-1 � . f f ' : __ T .JI _ -. .. Sit_: 5, ., _. .._ _;.'s. � 3 y t�. - A'. - 4C-?.--- TOTAL PREPAIDS 1-11 - I i Rt TOTAL 5 TOTAL "::4 L T' G r 31.: - { } _ s. _SUHTE 19, _ _ _ r: T T z : 00 _ +AAL - +Y.4 � S 19 7f_y sR 1 TOTAL DUE VENDOR 7-70 707ALFREPAIDS t -F .07 T nom,. CT T' OFFL: RUIN .41Ti 10,1412f20 14 4� i+_ "•' V::.:i3.;�'_., tLf' fri. - ,�H i -i 3_14 - tt �_ r J T I �'. _ -HCu, ii._ cam. .. �a R_ = r .. E r 1"t T{ rs a- } f 1 --- . , ,t.e Ea..«_3ii 1 _ uc, { M0,10"HIPISKINI Tj"T t - _ .. ., IU - L UIC LI E* _ !• > t =- r 3. 3.J VV OLI HL Ii U •- _ -.._: ifs P97 -16 10 -:...__ r FI i iFUL p. mc Mo IV IN PREn �? 94 4 :Y 44.- YIVIOUCI R Fr DISTEK -: t. E. FFRE P., D .zjECT-ACC Pat . jwo- cE _S I i s A ouwa -. S TE t i.ECK TOTAL FRE -AIDS ' TOTAL DUE .NUE __..._v_„ DTR 'tC- TOTAL 1 " R E R S, T 0 T AL DOE VENDOR 60 X6 i , , .. LOS ANI.— - PROF k..'r — STOCR71li DRAN 2,297.20 I PUMP 657 55"". SUMP UM-, PUMP 5C 63 )552 �; -: L - AL 1 — 5Tf ' ^1. SALr Ys± r .R 02 14. 3051 7 .NISIT 10846 AU.S. EVC -HIELICEYTER 27 4: --'j TCTAL PREPAIDS a .. W6 14 707AL VDIUCHERS .. e - Eic 1 iv C; e!: r F — AL — 1001-79 _ _ eL .. _ ZEAL. f jjjggg T027 -AL ERS g TC 11 - = 2 P L .. VOLUNTHMSTis nc ^s t• _�s��s_- - _ - TrITAL - R B •+ r N CONTROL -AUG 00 :f € TOTAL VNJUCH-FS -' E. R_ 57347.70 CITY A�>ai-yN Bh:i a DATE: [ RUN 10/12,0000 . f fi 4 � RUN.f.°s: `, t VOUCHER i ii't:.iiri REGISTER [ lU13 DUE THIRUt 10/17/2000 {t _ PAID ,. C'i''. ;L t Ft tx fl • rL z CHECK OAHE COM ITERMART DIAMOND EAR i.e__u f P' : Lr,, .atij SOFTWARE ii ei - TOTAL FREFAIDS 00 TOTAL VOUCHERS 19704 TOTAL .:1 MOBILE MOD&M MAWASE—lell 3N7 227 944 .T 46.TOTAL f TOTAL '11,R R-Zil-6 4 t. TOTAL - WNL15HT FREES TOTAL FREPAIDS TOTAL .00 - Tr _. TAL TOTAL FREPAIDS TOTAL ♦viii .00 - TOTAL _UE_ VENDOR 50 A0 - 10131 CONTRACT CILASS — FALL, 2.3k.S. 0Q - - TOTAL C 4 r- 01.-,. _ TQT�.L VOUCHERS, TITAL DUE '.JEN2GR 94 94. 105 .. _ .[i' - 110. r ,, 110,00 000 770 - S, ,.__ -..avow EVEWI 50.571WIPIWO 40 36 TOTAL PREFI.-�-';HDS 5157 _ VENITGIR, 50 Z7 -PP21 r E 21 PRIAL TRANSFER—P vF0 837300.00 PP .-. - :,_i3 VOU_LHIERS _ r, T _ _, __ ., ....__.; _. t r_ P17 CIP �Mok'l PAR - — f ry_l�• die P. ta.i ra.il4r � .-q rS-ry t R T—R c xaF-�.: • s.�; Yt_ ijYj } i7 L FM Ar -r r n r --T r• �. �(- �' flTT } IY CHECK r S TH 1.,vIN` REMS } S E C L. - SL�f-.i."EN -2 ' i tijLC �: _LLl -- ..-, _ T OT - + Tom..}} 5.} L - , t;_ •_ -vas.. f 10111 1' `.-; 3 x ,__ ti _.t_:. .a. i v,i�� «t „u vv _ sr i i•} S f ._c. ,.,n-- -= r_,i .. - s _ v 1 } t s _ r c L UL i RL I _ Jue:' -FE Al LL 1� Iz n mn 1 on - ;- t - i - n.1 A DIP r ! } -ri- = .. Y CITY OF L � #{ as BAR , RUN DATE 10/12/201,Y) T VOUCHER REGISTER L: DUE THRU: !Q/17/2000 t- .,..:.:, PC" •n _?t E ELT ? 1 L �.: REMEDY ---`.4 0 ,4 0 00-- 0,49' -Er -3/117 ver. TOTAL PREPAIDS - TOTAL. -.y TOTAL DUEVENDOR W612 ELEANOR R _;; __ _ - ._ y=_ _ _ TOTAL FFEEPATIDE TOTAl VOUICHERS a:ut , o', _ HF - INC TOTALCERTIFI CT-11-41 'RADAR _C1 E_. 45 Ao TOTAL VOUMERS Es 45 - } _; 07 A L DUE -",.,-: - .. _ i J i; - t E 1; 3100 L y 17 LLP LSLt.t FnH_Ct-[ sf t 4v - _ nL. SAICS: GEN E SP LOL SE-BCH-Cf RC JUL r E..}+ SEEEN we cc Ef 0014C20-44-02t Lfn_ -`FN c 1 ? 4 -- 09' 777 SP LSL tt e -r 2 - _ , L51 SEE - GEN jMy 00 2aMXO - i, _, t p y 00 4. SP LGL SMS-LANTEMAN W 17.5" O:D 14 '_0 4 4 _ _. _ i -11-55 ?: _ 113175 : i E TOTAL BU :- VENDOR- 1':, '. T _ n - , _ t sw 00 .::, S, TOIT•,_ D.-L-' - - T4 fly. ,.1ZLa UND i:: T �.+J'Yi f�, z`R /14;1 RUN DA Fjn AT L}vf L}�E' :':L.,i.`_'i= T �'r-, #i crL ..,.;_ L S1 ii# -C Iii � t L• _P.i Ti -I- 3.:•iorzz p iLiia 1 Cylj FP; p3.T. nq AL rT y __. ..._ ix.. ' FEE r l"i. t_ � i-- _ �i a TED iA a _r F-; ri f_ s L.:— - S-z�- ' :� 4 _ter f 3 i� kl 3 {�,• r :r ' rt!no T_ ; — : r _ x il, f: T^ f, r. '-; -. OTAI Tr_ - L C T i}L T}_ T zr A" v _-F4 �: 4 OF DIAMOND-..,BAC �}ar} r}nib lrji� 0014-42-29VOUNR Ci, t E PAGE; P -. - C T t �',,:4ti �t ..�.'�' f:G.T r PO i .T E ,F a Vp.`P7i (xk }l3a.T a A7_TC ' n ,,.-L•i:. C r4� Int CLF t Fay- _... nf ui Pi z _j A A v t HES TH 4 L L rC- Ub ._. 3 , ti" Y _ ' `4 E t r :. r .: { Iv,« sT -, _ �.,',�- Ri ' } in s DGE :y , CT `s T IT2 FK ,,. _ rt. t 58 is ._.._.,_.J 'r- _ : ._ - 13 51121 -_ 1z. Z -.. Iii' :ilo e:yt CI f" PPA El 7CT C ^. :?Cij. tri ti RUN' EA , C • 10111.12120001 j' -:;,_ :_``� R 1 CIT,_C+ CA � - E P.yf•1�`_. �'.� r' U �- l. 1 �-�:ls„+_ :,.moi= r. _U,•� L. .:tx Ai 5 T. ,� .,.. ifliu v1111 � _,: .._.[•..e _rvs,. :x it: jxi_ .,. �.Ar �_....- t iOx.... ,.... -'.-.. - ..� J 3 1 - 'l .:: rfiVE y 8. .1 1p V.1 =LOt : s i ...... 1 _ i. � tar..— x On- --_ A ._ - _ _ -J 0; DUE 3 TfliT L,l i •, - -- - - TOTAL 1 z.: E .. lul r no D T'R- IATC ry r.s�.' r_>r� .:i�l E-rv__ _. r:LL'1 �—'ii K Ij{5� r• .. — _.m Ullr.. T k t - _ M -T FFR' 1171-ru in 1c t pm i f 3 - T F: .aiuk r SPI r F - A f Ti,._ I3 1,84-17 LY OWE EV _41_ 1 aTLL-_—. . j t_.:_ ,t 7y E G = s 1. sJi i . [.i i - ` - _ _ L. 'r -•unt r -,- I is t�01171 E, i..S 1 ..' _ 60 0`0„ '-- - 78 115 _ r .._.... ,PHc - _t e F + , 372=1 4- 4 OP D MIT DIAIR RUIF" DATE'-lo/!2/2'006i 1442"29 Vf� -7rt� Sic' ISTP": i:.C'= t f -'j r`':'^T L 1 D/M ' i•' i". _ Cu _ .. A. 69 CHAR 15 5 L At -- -i .si+ t t SN P: Fr t rn. y t �- y i4 tEt L='i _Ci' r "j.. pi 1 tfha _.; - T; j 1r4 }r ERC' .T r. ice_ L:: v,. S; e: r; - v -it Pi A�i r 0. L _J.: r u- _ i vTTy 1Mi y - _ x:+J '. T', - AL DUE VENDDR - - ,...,:. r:L_. 2" - tq r rcZf.i r ,. "Jiro t Vii. t rag MUM DATP4-42 "I'DUCHER REGISTER • '6 PREP �_ � _� :lir HC { j"C,.h_f�tivf ;-'i;. :a. ',d ;` +�'; r�'.,,r✓i:. +s `,� �j UIN_ T CHECK AS Fft-_ 1 a.• JJ _ 1 1 CS i_ -:,.:ilii DO - v f )i y A4 t r _ i e 1 a�,JIJc : 120 t • — r r " --, C-mf " i F 5 E3 j L G 1 11,7 CG r� _I r zi E— z — — El A 4 Hl MIC a+- riY UT-0 ir C! 36, - - .. CITY OF DIAMOND BAR AGENDA REPORT AGENDA NO. % w TO: Terrence L. Belanger, City Manager MEETING DATE: October 17, 2000 REPORT DATE: October 12, 2000 FROM: Linda r,' Finance Director TITLE: Treasurer's Report– August 31, 2000 (Revised) SUMMARY: Submitted for the City Council's review and approval is the Treasurer's Statement for the month of August 2000 RECOMMENDATION: Review and approve. LIST OF ATTACHMENTS: X Staff Report — Public Hearing Notification _ Resolution(s) - Bid Specification (on file in City Clerk's office) _ Ordinance(s) Other: — Agreement(s) EXTERNAL DISTRIBUTION: SUBMITTAL CHECKLIST: 1. Has the resolution ordinance or agreement been reviewed Yes No by the City Attorney? — 2. Does the report require a majority vote? No 3. Has environmental impact been assessed?— _Yes N/A _Yes. No 4. Has the report been reviewed b a Commission? y _ N/A No Which Commission? _Yes _ 5. Are other departments affected by the report? I, N/A _ Yes _ No - DEPARTMENT HEAD11 JVD,Y:REVIEWED BY: . Belan e David d A. Doyle .Lmda i G. Magri s City Cit M , Manager Deputy City Manager Finance Director CITY COUNCIL REPORT AGENDA NO. MEETING DATE: October 17, 2000 TO: Honorable Mayor and Members of the City Council FROM: Terrence L. Belanger, City Manager SUBJECT: Treasurer's Statement August 31, 2000 ` (Revised) ISSUE STATEMENT: Per City policy, the Finance Department presents the monthly Treasurer's Statement for the City Council's review and approval. RECOMMENDATION: Approve the August 2000, Treasurer's Statement, FINANCIAL SUMMARY: No fiscal impact. BACKGROUND: Submitted for the Council's review and approval. is thef,rovised Treasurer's Statement for the month of August 2000. In order to reflect the most current cash balances due to the changes caused by the year-end closing and adjusting journal entries the treasurer's statement had to be revised. This statement shows the cash balances for the various funds, with a breakdown of bank account balances, investment account balances and the effective yield earned from investments. PREPARED BY: Linda 33. Magnuson ;I}1L��510E RECEIPTS , , .• =t��a�-tKa ; DISBURSEMEN',TS, , . , IN. OtJT) •• ; EWDIN+a, BALANCE.. . GENERAL FUND LIBRARY SERVICES FUND $14,992,248.90 $1,532;519.06 $1,147,129,74 $15,377;638.22 COMMUNITY ORG SUPPORT FD 99,529.30 2,047,46 4,679.76 984.36 100,592.40 GAS TAX FUND 2;667,935.59 196,817.02 58.64 602,863.18 4,621.12 TRANSIT TX (PROP A) FD 1,499,677.25 147,817.18 80,636.45 2,261,889.43 TRANSIT TX (PROP C) FD 1,411,835.00 72,015.41 1,566,857.98 ISTEA FUND (370,609,40) (370,609.40) 1,483,850.4141 INTEGRATED WASTE MGT FD 256,240.99 27,771.76 7,020.25 0. 00 AIR QUALITY IMPRVMNT FD 143,835.28 18,818.03 420.21 276,992.50 TRAILS & BIKEWAYS FD (SB 821) (514.39) 514.39 162,233.10 PARK FEES FUND (18;375.61) 18,375:61 0.00 FACILITIES & PARK DEVEL. FD 2,439,231.37 4,578.85 0.00 COM DEV BLOCK GRANT FD (47,601.57) 6,293.63 10,770.92 2,434,652.52 CITIZENS OPT -PUBLIC SAFETY FD 284,685,07 65,026,00 108,262.87 (52,078.86) NARCOTICS ASSET SEIZURE FD 337,146.86 1,048 45 " 241,448.20 LANDSCAPE DIST #38 FID 580,0.51.85 11;996.99 27,179.49 338,195.31 LANDSCAPE DIST #39 FD 249;908.46 5,653.80 18,503.10 564,869.35 LANDSCAPE DIST #41 FD 350;396.916,079 70,;, 17,535.73 237,059.16 GRAND AV CONST FUND 139,130.78 338,940,88 CAP IMPROVEMENT PR -1 FD(154,797.44) 157,228.76 139,130.78 SELF INSURANCE FUND 1 999,963 95 14,555,70 (312,026.20) EQUIPMENT REPLACEMENT FUND 45,177 96 1,982.00 1,014,519.65 TOTALS SUMMARY OF ASH $25,909,776.87 $2,127;350.19 $1,814,545.15 $0.00 43,195.96 $26,222,581.91 DEMAND DEPOSITS: GENERAL ACCOUNT $201,970.22 PAYROLL ACCOUNT (89,460,30) CHANGE FUND 250.00 PETTY CASH ACCOUNT 500,00 TOTAL DEMAND DEPOSITS $113,259.92 INVESTMENTS: US TREASURY Money Market Acct. $794,615.64 LOCAL AGENCY INVESTMENT FD 25,314,706.35 TOTAL INVESTMENTS $26,109,321.99 TOTAL CASH, $26,222,581.91 Note. The City of Diamond Bar is invested in the State Treasurer's Local Agency Investment Fund. All funds are available within 24 hours. Investment in the Local Agency Investment Fund for withdra is allowed under the City's formally adopted investment po As a secondaryinvestment option, the City continues to maintain p the "swept" U5 Treasury Sweep Account with Wells Fargo. excess funds are on a daily basis from the City's bank accounts and are invested Any overnight into an Investment of US Treasury Notes. Interest is credited to the Clfy's bank account ' poo on a monthly basis LA.I.F - Effective Yield for August 2000 6.505% Money Market -Effective Yield for June 2000 5.8063a All investments are placed in accordance with the City of Diamond Bar's Investment Policy. The above summary provides sufficient cash flow liquidity to meet the next six month's estimated expenditures. Terrence L. Belanger, Treasurer CITY OF DIAMOND BAR AGENDA REPORT AGENDA NO. 6.7 TO: Honorable Mayor and Members of the City Council MEETING DATE: October 17, 2000 REPORT DATE: October 11, 2000 FROM: Terrence L. Belanger; City Manager TITLE: Notice of Completion for the Traffic Signal Improvements at the Intersections of Brea Canyon Road/Diamond Crest Lane, Brea Canyon Road/Glenbrook Drive, and Brea Canyon Road/Golden Springs Drive. SUMMARY:" The City Council awarded the construction contract in the amount of $227,605.00 with a contingency amount of $28,500 for project change orders to be approved by the City Manager, for a total authorization amount of $256,105.00. The traffic signals at the intersections of Brea Canyon Road/Diamond Crest Lane and Brea Canyon Road/Glenbrook Drive were operational on September 8, 1999 and January 3, 2000, respectively. The traffic signal at the intersection of Brea Canyon Road/Golden Springs Drive was completed on September 5, 2000. The final construction contract amount is $252,353.00. RECOMMENDATION: That the City Council accept_ the work performed by L. A. Signal and authorize the City Clerk to file the proper Notice of Completion and to release any retention amounts thirty-five (35) days after the recordation date: LIST OF ATTACHMENTS: X Staff Report_ Public Hearing Notification _ Resolution(s) _ Bid Specification: on file at City Clerk's _ Ordinances(s) office. _Agreement(s) _xOther: Notice of Completion SUBMITTAL CHECKLIST: 1. Has the resolution, ordinance or agreement been reviewed N/A _ 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. REVIEWED BY: Terrence L. Belanger James DeStef no David G. Liu City Manager Deputy City anager Director of Public Works MEETING DATE• O b 1 AGENDA NO. cto er 7, 2000 TO Honorable Mayor and Members of the City Council FROM: Terrence L. Belanger, City Manager SUBJECT: Notice of Completion for the Traffic Signal Improvements at the Intersections of Brea Canyon Road/Diamond Crest Lane, Brea Canyon Road/Glenbrook Drive, and Brea Canyon Road/Golden Springs Drive. ISSUE STATEMENT To submit and file for recordation a Notice of Completion for the Traffic Signal Improvements at the intersections of Brea Canyon Road/Diamond Crest Lane, Brea Canyon Road/Glenbrook Drive and Brea Canyon Road/Golden Springs Drive. RECOMMENDATION That the City Council accept the work performed by L. A. Signal and authorize the City Clerk to file the proper Notice of Completion and to release any retention amounts thirty-five (35) days after the recordation date. FINANCIAL SUMMARY The process of filing Notice of Completion has no fiscal impact on the City BACKGROUND/DISCUSSION On September 7, 1999, City Council awarded the construction contract for the construction of traffic signals at the intersections of Brea Canyon Road/Diamond Crest Lane, Brea Canyon Road/Glenbrook Drive, and Brea Canyon Road/Golden Springs Drive, in the amount of $227,605.00 with a contingency amount of $15,000.00 for project change orders to be approved by the City Manager. On February 5, 2000, the City Council approved a contract amendment with L. A. Signal to increase the contract amount to $256,105.00 (including $28,500 in authorized contingency). The contract amendment was necessitated by several subsurface conditions at the intersections of Brea Canyon Road at Glenbrook Drive and at Golden Springs Drive. . The traffic signals at Brea Canyon Road/Diamond Crest Lane and at Brea Canyon Road/Glenbrook Drive was completed and operational on September 8, 1999 and: January 3, i 2000, respectively. The new poles toreplacethe olderones at Brea Canyon Road/Golden Springs Drive arrived in August and the modifications were completed on September 5, 2000. The total change order required was $24,748.00 and the final construction contract amount is $252,353.00. Prepared by: David G. Liu 2. jRECORDING REQUESTED BY`�,�*" AND WHEN RECORDEDMAIL TO `\ Mame CITY OF DIAMOND BAR Street 21(60 EAST COPLEY DRIVE Ad'ress SUITE 100 City& DIAMOND BAR, CA 91765-4177 State L ATTN: CITY CLERK SPACE ABOvE )NIS LINE FOR RECORDER'S USF NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for Complete requirements.) Notice is hereby given that: I. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described. 2. The full name of the owner is . Cit of Diamond Bar 3. The full address of the owner is uita 100 Diamond Bar, CA 9176:5 4 The nature of the interest or estate of the owner is; In fee. At other than fee. strike ''In lee" and insert, for example, "Purchaser under contract of purchase," or "lessee") 5.' The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: ' NAMES ADCRESSES 6. A work of improvement on the property hereinafter described was completed on September 5, 2000 Traffic Signal Improvements at the Intersections of Brea CanyonThe/Dwork donewas. iamond Crest Ln, Brea C n on Rd./Glenbrook Dr., &Brea o en pr> 7. The name of t�e contractor, if any, for such work of improvement Z—" (It no contractor for work of improvement as a whole, insert "none':) August 3, 1999 8. The property on which said work of improvement was completed is in the cit of (Date of contract) y Diamond Bar County of Los Angeles Stale of California, and is described as follows: Traffic Signal Improvements of Brea Canyon Rd./Diamond Crest Ln.,Brea Canyon Rd./Glenbrook Dr., & Brea Canyon Rd./ rin s Dr. 9. The street address of said property is Dated: (If no street address has been otficiany assigned, insert "none') verification for Individual Owner City of Diamond Bar Signature of owner ororporate officer of owner named in paragraph 2 Of his agent VERIFICATION 1, the undersigned, say: I am the Director of Public Works ('President of", -Manager, "A partner of'; "'owner of", elf.) of the foregoing p notice of completion; I have read said notice of Completion and know the contents thereof; the same is true of m own knowledge. 1 declare under penalty of perjury that the foregoing is true and correct. Executed on (Date of signature.) 19 a California. (City where signed.) (Personal signature of the individual who is swearing that the contents of the notice of completion are true.) CITY OF DIAMOND BAR AGENDA REPORT AGENDA NO. w TO: Terrence L. Belanger, City Manager MEETING DATE: October 17, 2000 REPORT DATE: October 11, 2000 FROM: Lynda Burgess, City Clerk TITLE: Award of Contract for Document Imaging Conversion Services SUMMARY: Since Incorporation in 1989, the City has amassed over 1,100,000 pages of documents which are stored both at City Hall and in five off-site storage units. In 1995, the City acquired a document imaging system whereby documents maybe scanned into the City's computers and converted to digital format with the images retained permanently on CD-ROM disks. Hard copies of the materials can then be disposed of two years after their placement on CD-ROMs. This system can provide instant access by staff, the City Council and the public (via the internet) to all permanent public records under control of the City of Diamond Bar. To date, staff has input over 2,267 documents into the system, which include all City Council Minutes, Resolutions and Ordinances, the General Plan, the Development Code, Design Guidelines and the Subdivision Ordinance. With approximately 1,100,000 pages of materials remaining to be scanned into the system, staff has proposed contracting with an outside vendor. In adoption of the FY 2000-01 budget, the City Councilallocated $94,000 for conversion of engineering drawings and maps as well as building permits. After completing an RFP process, staff recommends award of a contract to Prime Ventures, Inc. dba Document Imaging Service Corporation in the amount of $79,239.08 with a 10% contingency in the amount of $7,923. RECOMMENDATION: It is recommended that the City Council award a contract to Prime Ventures, Inc. dba Document Imaging Service Corporation in the amount of $79,239.08 for document conversion services for engineering drawings and maps and building permits, with a 10% contingency for contract changes in the amount' of $7,923. LIST OF ATTACHMENTS: X Staff Report _ Public Hearing Notification " _ Resolution(s) - Bid Specification (on file in City Clerk's office) Ordinance(s) _ Other: X Agreement(s) SUBMITTAL CHECKLIST: 1: Has the resolution, ordinance or agreement been reviewed X Yes _ No by the City Attorney? 2. Does the report require a majority vote? X Yes No 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? X Yes No Report discussed with the following affected departments: Community Development REVIEWED BY: DEPARTMENT HEAD: L. Belanger David Iy 4Ly �Terrence Burgess City Manager Deputy City Manager City Clerk a CITY COUNCIL REPORT AGENDA NO. MEETING DATE: October 17, 2000 TO: Honorable Mayor and Members of the City Council FROM: City Manager SUBJECT: Award of Contract for Document Imaging Conversion Services ISSUESTATEMENT: Over 1;100,000 pages of documents, many of which must be retained permanently, are in storage both at City Hall and in five off-site storage units. RECOMMENDATION: It is recommended that the City Council award'a contract to Prime Ventures, Inc. dba Document Imaging Service Corporation i . . 9 9 p n n the amount of $79,239.08 for document conversion services. for engineering drawings and maps and building permits, with a 10% contingency for contract' changes in the amount of $7,923. FINANCIAL SUMMARY: The City Council allocated $94,000 in Account No. 001-4040-44000, Professional Services for Fiscal Year 2000-0`1. i BACKGROUND: Since Incorporation in 1989, the City has amassed over 1,100,000 pages of documents pertaining to its operations and services to the community. Many of these documents are in storage in five separate off- site storage units that are unprotected from damage due to fire, flood, earthquake or rodents. In 1995, the City acquired a document imaging system whereby documents may be scanned into the City's computers and converted to digital format with the images retained on CD-ROM disks. Since 1995, City Clerk Department staff has successfully completedthe conversion of approximately 2,267 documents consisting mainly of City Council legislative material s, i.e., Agendas, Minutes, Ordinances Resolution's u ions and Expired Contracts. In addition, the City's General Plan, Development Code, Design Guidelines and Subdivision Ordinance have all been scanned into the system for easy retrieval/research by staff, Council Members and the public {via the Internet}. i During review of its budget for Fiscal Year 2000-01, the City Council considered Phase 1 of a proposal to provide a more efficient and rapid manner of incorporating the City's backlog of documents into a digitized format for addition to its document imaging system. As a result, the City Council allocated an amount of $94,000 for the conversion of engineering plans, maps, and building permits. Following adoption of the budget, City Clerk Department'staff prepared a Request for Proposals, which was sent to fifteen firms known to provide document scanning and digitizing services. On September 11, 2000, seven firms responded to the RFP with proposals ranging from a low of $50,038.55 to a high of $224,742. While most proposals met the minimum standards outlined in the RFP, most had extra fees for services such as documentpreparation, pickup and return of materials, provision of the images on CD-ROM, technical support, etc. These extra fees could result in increased costs of anywhere from an estimated $2,000 town estimated $5,000 or more. In addition, the lowest bidder is a brand-new firm with no current history of provision of these types of services. Prime Ventures, Inc., dba Document Imaging Service Corporation proposed a flat fee of $79,239.08 to convert approximately 255,898 pages of the City's engineering drawings, maps and d -permits with no extra charges for pickup and delivery. Document Imaging Service Corp. (DISC) has been in the document conversion business since 1993 and has a management team with over 50 years of multimedia experience. References include the U.S. Attorney's Office Southern District of California,conversion of over 400,000 pages for the Western Area Counsel Office of the U.S. Marine Corps.; City of San Diego Auditor's Department; conversion of 1,000,000 documents for Commonwealth Land Title; conversion of 220,000 aperture cards for the Development Services Department of the City of San Diego; architectural and engineering drawings for the San Diego Zoo and Wild Animal Park and the Cities of Murrieta and Stanton, CA. DISCUSSION: The number of pages estimated to be included in this Phase was provided by an independent consultant at no charge to the City. Due to the possibility that the estimate may be lower than the actual number of pages converted, a 10% contingency amount is requested. PREPARED BY: Lyn da Burgess, City Clerk CONSULTING SERVICES AGREEMENT UUFjY THIS AGREEMENT is made as of by and between the City of Diamond Bar, a municipal corporation ("City") and Prime Ventures, Inc., dba Document Imaging Service Corporation, ("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 October 11, 2000. 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: 1.. 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 "A" the Consultant's Response, dated September 11, 2000 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 "A. 2. Term of Agreement.' This Contract shall take effect November 1, 2000, and shall continue until June 30 2001 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. 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 of Diamond Bar Consultant: Prime Ventures, Inc. dba 21660` East Copley Drive Document Imaging Service Suite 100 Corporation Diamond Bar, CA 91765-4177 411 Camino Del Rio South Suite 300 San Diego, CA 92108 6. Status as Independent Consultant. .I 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, 1 represent that if or any of its agents or employees are in any manner agents or employees of City: B. Consultant agrees to g :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 reimburseCityfor 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' compensationlaw 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 orro e or liabilities that may be asserted or claimed by an p nentity, penalties, obligations, y :person, firm, y,. 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, and volunteers shall be named as additional insureds on the policy(ies) as to comprehensive general liability, property damage, and automotive liability. The policy(ies) 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 2 insureds to the policy) by the insurance carrier without the insurance carrier giving City thirty (30) day's prior written notice thereof. Consultant agrees that it will not cancel, reduce or otherwise modify the insurance coverage. 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 under this section shall survive the termination of this Agreement. 13. Termination. Either parry 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 continue performing services. 3 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 written 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 4 e , 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 thisAgreementshall 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 theprovisionsof this section: 22. Governing Law. This Contract shallbe interpreted, construed and enforcedin 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 written above. „City„ ATTEST: CITY OF DIAMOND BAR By. By:, City Clerk Mayor 5 ADDITIONAL INSURED ENDORSEMENT COMPREHENSIVE GENERAL LIABILITY Name and address of named insured ("Named Insured'): Name and address of Insurance Company ("Company'): General description of agreement(s), permit(s), license(s), and/oractivity(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, andvolunteers are additional 'insureds (the above named additional insureds are hereafter referred to as the "Additional Insureds") under the Policy in relation to those activities describedgenerally 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 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 -7 ADDITIONAL INSURED ENDORSEMENT COMPREHENSIVE GENERAL LIABILITY 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 scopeof 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 andallnotices given hereunder shall be sent to Public Agency at: City of Diamond Bar 21660,E. Copley Dr., Suite 100 Diamond Bar, CA 91765 . 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: ❑ Contractual Liability ❑ Explosion Hazard ❑ Owners/Landlords/Tenants 0 Collapse Hazard ❑ Manufacturers/Contractors 0 Underground Property Damage ❑ Products/Completed Operations ❑ Pollution Liability ❑ Broad Form Property Damage' ❑ Liquor Liability ❑ Extended Bodily Injury ❑ Broad Form Comprehensive J-8 ADDITIONAL INSURED ENDORSEMENT COMPREHENSIVE GENERAL LIABILITY ❑ General Liability Endorsement El 12. A ❑ deductible or ❑ self-insured retention (check one) of $ applies to all coverage(s) except: (if none, so state). The deductible is applicable 0 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 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 Signature of Authorized Representative (Original signature only, no facsimile signature or initialed signature accepted) Phone No.:( ) J-9 ADDITIONAL INSURED ENDORSEMENT COMPREHENSIVE GENERAL LIABILITY ADDITIONAL INSURED ENDORSEMENT AUTOMOBILE LIABILITY Name and address of named insured (`Named Insured'): ' Name and address of Insurance 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 or executed in conjunction with the 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 J-1'0 ADDITIONAL INSURED ENDORSEMENT AUTOMOBILE LIABILITY 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, fosses 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: City of Diamond Bar 21660 E. Copley Dr. Suite 100 Diamond Bar, CA 91765 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: ❑ Any Automobiles ❑ Truckers Coverage ❑ All Owned Automobiles ❑ ' Motor Carrier Act ❑ Non -owned Automobiles ❑ Bus Regulatory Reform Act ❑ Hired Automobiles ❑ Public Livery Coverage` ❑ Scheduled Automobiles ❑ ❑ Garage Coverage ❑ 12. A ❑ deductible or ❑ self-insured retention (check one) of $ applies to all coverage(s) except: J-1'1 ADDITIONAL INSURED` ENDORSEMENT AUTOMOBILE LIABILITY (if 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 I, (print name), hereby declare under penalty of perjury under the Jaws 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 Signature of Authorized Representative (Original signature` only, no facsimile signature or initialed signature accepted) Phone No.: (-) J-12 ADDITIONAL INSURED ENDORSEMENT AUTOMOBILE LIABILITY ADDITIONAL INSUREDENDORSEMENT EXCESS LIABILITY Name and address of named insured ("Named Insured'): Name and address of Insurance 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 endorsementnow 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 againstanother 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 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 1 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: City of Diamond Bar 21660 E. Copley Dr., Suite 100 Diamond Bar, CA 91765 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 FROMITO LIABILITY El Following :Form ❑ Umbrella Liability 11. Applicable underlying coverages: INSURANCE COMPANY POLICY NO. AMOUNT 12. The following inclusions, exclusions, extensions or specific provisions relate to the above coverages: 13. A ❑ deductible or ❑ self-insured retention (check one) of $ applies to all coverage(s) except: (if none, so state). The deductible is applicable ❑ per claim or ❑ per occurrence (check one). 13. This is an ❑ occurrenceor ❑ claims made policy (check ane). 2 14. This endorsement is effective on at 12:01 A.M. and forms a part of Policy Number 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 Signature of Authorized Representative (Original signature only; no facsimile signature or initialed signature accepted) Phone No.:( ) 3' 5.0 ,VENDOR REQUIRED INFORMATION EXECUTIVE SUMMARY Document Imaging Services Corporation (DISC) and A/E Scantech are pleased to provide this proposal to City of Diamond Bar, Community Development Department (CDD) for a digital conversion solution. Based on our experience overthe years in doing similar work, we have formulated a cost effective and high quality approach to the CDD project. The solution proposed is to combine the large format scanning expertise of A/E Scantech, DISC's business document, aperture card and indexing service'` experience and the knowledge of a'staff that includes two Westbrook Technologies certified Qualified Fortis Professionals (QFP). DISC will be the primary contractor responsible for all logistics, client service and financial matters. The Mission of DISC is: "To bring together people, technology, and paper in an easy to use, affordable system of information management." DISC first madeit's mark in the legal market by providing scanning services on the most sensitive and confidential projects requiring it's personnel to have 6-E grand jury clearance DISC implemented the first imaging system in San Diego's Superior Court and was also.selected by the U. S. Attorney's Office to assist them with their first imaging trial presentation in Federal Court. DISC has successfully completed a variety of imaging projects involving mission critical documents. The digital capture process covers a series of operations that both precede and follow the actual scanning of the documents. These processes include document preparation, scanning, indexing, quality control operations, storage and uploading to the host system. DISC has been able to successfully complete similar projects with the highest level of satisfaction. This objective is achieved ; by stressing project planning and communication for each task and using professional, trained imaging specialists. DISC has ;years ,of experience with conversions and document imaging systems. The advantages offered to CCD include: • Experience in managing scanning projects for millions of documents. • In-house expertise in the Fortis document management system. • Proven management expertise to ensure meeting a]Irequirements schedules. • State-of-the-art imaging conversion facilities. • Fujitsu Premier Partner for expert imaging capabilities and, resources. • Quality control processes to ensure 100% verified data capture, The City of Diamond Bar's RFP requires scanning of several different types of documents. These documents are 5,0:00 aperture cards, 34,709.24"x36" drawings; and 127,949 letter size permits, all of which' are to be completed within two months. DISC and A/E Scantech have the experience and resources to meet or exceed the project milestones and has outlined steps in this proposal to ensure that the project stays on track Jointly, DISC and A/E Scantech have partnered together on many projects involving' large format scanning, indexing and outputting to File Magic/Fortis systems. These rprojects include capturing minutes, resolutions, service orders and- large format drawings for the Sweetwater Authority. Over 200,000 images have been uploaded to Sweetwater's File Magic system and they have integrated File Magic :with GIS Arcview software. In a continuing project AE Scantech has scanned over 100,000 as -built drawings for Jack in the Box, Inc. which have been image enhanced, indexed and uploaded to a File Magic system by DISC. 5.1 BUSINESS ORGANIZATION Company Name: Prime Ventures, Inc., DBA Document Imaging Services Corporation 411 Camino del Rio South, Ste. 300 M DOCUMENT PREPARATION The process begins with proper planning. Each type of document, permits; drawings and aperture cards, will be prepared for scanning. This may involve removing staples or binding, doing in repairs or tagging documents for special care or attention. DOCUMENT MANAGEMENT The documents are extremely valuable to CDD and must be handled with the utmost care and 'security. DISC will follow all directives of CDD and if desired will submit a Document Management Procedure for CDD to review and approve. This written procedure will allow scanning efficiency and facilitate tracking document movements, while providing a mechanism for the retrieval of documents for CDD's'personnel during the project. DISC has implemented procedures for many other projects scanninghighly confidential materials. LOGGING OF DOCUMENTS When documents are received,; they will be entered into 'a logfile to record receipt and pertinent information for the rest of the processes. The logfile will enable DISC to know the status of each document as well as who worked on it and when. SCANNING Permits DISC suggests that the permits be scanned as multi -page TIFF documents. Fortis is designed to work with multi -page TIFFs and the import process is less complex. However, DISC is able to provide single page TIFFS and all terms and conditions contained` in this response will, apply to a single page TIFF output. The permits will be scanned with an appropriate .scanning threshold set for each document at 300dpi. Each group will be pre -scanned to determine the best threshold setting. DISC is a Fujitsu Premier Partner and has worked with Fujitsu scanners for over six years. During this time we have scanned millions of pages with these scanners and have not had a single problem beyond normal maintenance. Fujitsu Computer Products of America., part of a -company with more than $36 billion in annual sales, is the market' leader' with 7510 share of mid-range scanners. The following features will be particularly helpful. • Dynamic Thresholding increases the accuracy of low -contrast documents that contain handwritten or typed characters with varying line' thickness. • Automatic Document Feeder is designed to handle from light onion skin and NCR pages all the way up to light card stock. Aperture Cards The aperture cards will be scanned using the Contex 4200 scanners with an appropriate scanning threshold set for each drawing, TIFF, CCITT Group "4 Compression. Aperture cards of poor quality will be scanned using the unique two dimensional: 2D -Adaptive Thresholding to enhance the quality of light images or images on an excessively dark background. - Normal scanning set's a fixed threshold over the entire drawing. Anything darker than this threshold becomes black and anything Iighter becomes white. This works well for most original drawings where the entire image is darker than the background of the drawing. For aperture cards made from drawings such as old samples, blueprints or, drawings with image information or the front and back, 2D -Adaptive Thresholding improves the quality of the final image. When scanning using, adaptive thresholding; at each point on the drawing the scanner looks at the surrounding points to determine if this point shoul& be black or white. This allows the threshold to adjust continuously for variations in image and background contrast. Large Format Drawings DISC and AE Scantech .will primarily be using an Oce 9800 with the ability to scan up to 10 sheets per minute to scan the large format drawings. This scanner features Image Logic which performs a number of quality -enhancing operations automatically. (Manual fine tuning is also .possible.) ,The automatic background compensation feature distinguishes critical line and text information from dark ordirty backgrounds, resulting in background -free documents with optimum legibility. Digital filtering enhances weak lines and softens shaded areas. A digital, error -diffusion technique ensures optimum reproduction of halftones and gradations in shading. POST PROCESSING OF SCANNED IMAGES Once the 'documents have been scanned, they will be processed to improve the image quality. Post processing will include:- • Rotation to properly orient the image. • Cropping as necessary to remove excess data around the edge of the image and `reduce 'file size. • Despeckling to remove insignificant specks on the drawing, usually caused by background haze. This will also reduce the file size. • Deskewing to align the image horizontally in the file. FINAL SCANNED FILE REVIEW During the final: stages of the post processing,' the images are inspected for overall quality. If necessary, the drawing will be rescanned or extra processing will be done to improve the quality of the raster image. FILE BACKUP Prior to the preparation of the deliverables, all project files will be backup and stored until the data has been reviewed and uploaded to the client computer system. INDEXING Permits to be indexed by two keys: 1:' Permit Number 2. Sheet Address Drawings to be indexed by three keys: 1. Project Case Number, 2.` Title 3. Drawing Type 3) Weekly Progress Reports will be faxed to client administrator. Any variance will be noted along with corrective steps to 'be taken. J Review Cycle 1) During ramp -up phase client will provide sample representative of the project. DISC will perform complete process. Review with CDD will identify p p issues and set standards. 2) Every 15 calendar'days'after start date, one third ofthe total number of images will be -returned to p g ' g /2 : CDD. The corres ondin ma es on CD-ROM and index data on 3 1 diskette willbe delivcred. 3) DISC will perform 100% verification during quality control. CDD should establish its own quality' acceptance procedure. A percentage sample should be reviewed by CDD. An initial evaluation indicating client acceptance or reporting problem analysis must be faxed to DISC following delivery. ,Any problems will result in a meeting with client to review current' situation and resolution.' Change Order Any change order shall be in writing and shall be sent by facsimile with a confirming copy by U. S. mail' at the address above. All change orders shall be deemed given on the day actually received by the party to whom the order was sent. DISC will review any change order for its financial impact and report any price; implications within two working days. Warranty DISC warrants that the images, indexes and the CD-ROM's and disks on which they are recorded will perform substantially according to the standards set forth in the RFP and be free from defects in material and workmanship under normal use fora period of ninety (90) days from the date of the delivery at the last milestone. Primary Project Contacts: Document Imaging Services Corporation, Name Mr. Richard Berlin Position President of DISC Description Co-founder of DISC. President of the San Diego Chapter of the Association of Record Managers and Administrators (ARMA). Has twenty years experience in the telecommunications industry. Mr. Berlin was formerly Vice President of Operations at CVN America's Shopping Channel where he was responsible: for operational policy, and reviewing system performance to ensure sales goals were met. Mr. Berlin has held positions in cable television management; with United Cable Television as General' Manager of the Abilene, Texas and Santa Fe, New Mexico systems. He holds both a B. S. and an MBA from Tulane` University. Name Mr. Alan Berlin Position Chief Operating Officer Description Formerly Vice President of Merchandise for CVN America's Shopping Channel, was responsible for the purchasing and price functions for six locations across the country. Mr. Berlin has been in cable television management and marketing working with TeleCommunications, Inc., Continental Cablevision and Showtime Entertainment. He has a B -A. from Hobart College and an MBA from Tulane k University. Name Matthew' Mason `Position Project Manager Description Mr. Mason has been with DISC since 1994. He has been certified as a Qualified Fortis Professional` by Westbrook Technologies. Name Tiffani Graham Position Lead Technician Description Tiffani has worked in the imaging field for over four years and has been the lead Technician on several projects high volume scanning projects including the on-site scanning of over 300,000 documents for British Nuclear Fuel Solutions in Scotts Valley, Califomia. 5.4 PRIOR EXPERIENCE References for DISC: DISC is San Diego's most experienced document imaging company and has successfully completed many mission critical projects, both backfile and go -forward. Please -feel free to contact the followingreferences: Conversion of 1,000,000 Documents Commonwealth Land Title Converted over 1,000,000 pages of title policies to images with indexing. Process included extensive document preparation including; separating relevant documents to, be scanned from other documents i not required to be archived. Initial backfileconversion performed.in 1996 over a six-month period. Additional policies are currently scanned and indexed by DISC monthly, then appended to the existing database. Company: ` Commonwealth Land Title Contact: Robert Allen Phone: 6,19-686-6000, ext. 251 Address: 1455 Frazee Road, Ste. 600 San Diego, CA 92108 Backfile Conversion and Network Imaging System Western Area Counsel Office, USMC DISC has extensive experience working with _government projects including the Western Area Counsel Office (WACO) of the U.S. Marine Corps.. Last year WACO contracted with DISC to scan 140,000 pages of their existing case files. Partial databases existed for the files in Lotus Approach and Microsoft Access. Paralegals examined the.paper documents in order to eliminate duplicates and nonessential information and complete the databases. The paralegals also inserted a separator sheet between each document with a preprinted case file number, Using zone OCR, the. approximately 2,000 case file numbers were populated into the field in the database. The completed Lotus Approach and Microsoft Access' databases were imported into client's software. I DISC has been awarded three backfile conversions for the U.S. Marine Corp, Camp Pendleton performed in 1997 and 1998. Additional backfile to be performed this year. Approximately 400,000 pages scanned and indexed to date. Company: Western Area Counsel Office, USMC Contact: Teresa Young ' Phone: 760-725=5196 Address: Box 555231 Camp Pendleton, CA 92055 Medical Records Conversion Hewlett Packard Earlier this year Document Imaging Service Corporation (DISC) completed a backfile conversion of 127,000 pages of employee medical records the Health Services department of Hewlett Packard (I3P). This consisted of 18,000 documents ` for 2,000 active employees as ' well as several hundred terminated employees. There are 25 'different document types with their' respective index fields. Only HP nurses are qualified to identify document types. Nurses placed preprinted document type barcodes on -the first page of each document. DISC scanned the documents and manually keyed the employee number from the file folder. The rest of the indexing was automated by indexing the barcodes using zone OCR and importing additional fields from an existing database of employee ,information. 6.1.4.4 DISC will provide 100% frame by frame visual inspection for contrast, brightness, sensitivity, etc. The unique two dimensional 2D -Adaptive Thesholding will be applied to the images to ensure clean, crisp scan from even poor documents. 6.1.4.4 DISC will"rubberband" or "crop" the image location to provide a clean image without surrounding areas. Using image enhancement technology to despeck, rotate, deskew, remove unnecessary lines, etc_ DISC will use every effort to keep the storage to a minimum without sacrificing the quality and clarity of the image. . 6.1.4.5 CD-ROMs and the images will be spot checked for validity. If a problem should arise, DISC will include the correction in the next milestone. If the error was in the last milestone then correction will be returned to the City within 15° days, at no cost to the City. If a document is damaged or lost by DISC, we will be fully responsible for all costs associated with replacement. 6.1.5 INDEXING 6.1.5.1 DISC will index the building plan sheets with two fields and associated with the file name. These are the street address»"permit permit number and tiff name". 6.1.5.2 DISC will index the drawings with three fields and associated with the file name. These are the "project/case number", "title" as listed in the title box, "drawing type"'and "tiff name. 6.2 PROOF OF QUALITY Included in this package is a diskette containing the sample images and indexes along with instructions for importing into the Fortis system. 6.3 SERVICE 6.3.1 All scanning will be done in-house at the facilities. of DISC and A/E Scantech'. 6.3.2 Document preparation is included in the scanning charges of this proposal. 6.3.3 DISC will work closely with the Engineers of the City of Diamond Bar. As an additional option, DISC can also provide oversight by an independent Civil Engineer if CDD so desires. 6.3.4 Pick up and delivery is included in this proposalatno charge to CDD. 6.3.5 DISC has a hardcopy document storage relationship with Corovan. Founded in 1947 Corovan is currently the largest North American Van Lines agent in California. The documents will be stored in a 244,000 sq. ft. ` state of the art facility include four high vault storage, a mezzanine for shelving, record storage racking, and a climate controlled storage vault for electronic media. Long-term storage of the documents can be arranged based upon the requirements of CDD. CITY OF DIAMOND BAR AGENDA REPORT AGENDA NO. TO: Honorable Mayor and Members of the City Council MEETING DATE: October 17, 2000 REPORT DATE: October 10, 2000 FROM: Terrence L. Belanger, City Manager TITLE: Resolution No. 2000- XX A Joint Resolution of the Board of Supervisors of the County of Los Angeles Acting in Behalf of Los Angeles County General Fund, Los Angeles County Library, Los Angeles County Flood Control, Los Angeles County Consolidated Fire Protection District, Los Angeles County Lighting District #10006- Diamond Bar, Los Angeles County Fire- FFW, the Board of Directors of County Sanitation District No. 21 of Los. Angeles County, and the Governing Bodies of City of Diamond Bar, Greater Los Angeles County Vector Control District, Three Valleys Municipal Water District, Walnut Valley Water District (WVWD), WVWD- Improvement District #5 Approving and Accepting Negotiated Exchange of Property Tax Revenues Resulting from Annexation to County Sanitation District No. 21. SUMMARY: To receive off-site sewage disposal services, a new project or property must annex to the County Sanitation District. McDonald's Corporation has requested that their property located at 21095 Golden Springs Drive be annexed into County Sanitation District No. 21.. In order to bring a new project or property into the District, the District has the obligation to negotiate with agencies receiving ad valorem taxes generated in the subject area. Consequently, the County Sanitation Districts of Los Angeles County is requesting the City to execute two (2) copies of a joint resolution approving and accepting negotiated exchange of property tax revenues resulting from annexation to County Sanitation District No. 21. RECOMMENDATION: It is recommended the City Council adopt Resolution No. 2000 -XX approving and accepting the negotiated exchange of property tax revenues resulting from Annexation No. 682 to County Sanitation District No. 21. LIST OF ATTACHMENTS: _ Staff Report Public Hearing Resolution - Bid Specification Ordinance X Other: Joint Resolution &Man �.. Agreement EXTERNAL DISTRIBUTION: SUBMITTAL CHECKLIST. 1. Has the resolution, ordinance or agreement been reviewed by the City Attorney? X Yes No 2. Does the report require a majority vote? X Yes No 3. Has environmental impact been assessed? X NA Yes _ No 4. Has the report been reviewed by a Commission? X NA Yes — No Which Commission? - -- 5. Are other departments affected by the report? X NA Yes No Report discussed with the following affected departments: REVIEWED BY: Terrence L. BelangerJ es DeStef o a G.1; City Manager Deputy City M er Director of Public Works 1 CITY COUNCIL REPORT AGENDA NO. MEETING DATE: October 17, 2000 TO: Honorable Mayor and Members of the City Council FROM: Terrence L. Belanger, City Manager SUBJECT: Resolution No. 2000- XX, A Joint Resolution of the Board of Supervisors of the County of Los Angeles Acting in Behalf of Los Angeles County General Fund, Los Angeles County Library, Los Angeles County Flood Control, Los Angeles County Consolidated Fire Protection District, Los Angeles County Lighting District #10006- Diamond Bar, Los Angeles County Fire- FFW, the Board of Directors of County Sanitation District No. 21 of Los Angeles County, and the Governing Bodies of City of Diamond Bar, Greater Los Angeles County Vector Control District Three Valleys Municipal Water District, Walnut Valley Water District (WVWD),'WVWD- Improvement District 45 Approving and Accepting Negotiated Exchange of Property Tax Revenues Resulting from Annexation to County Sanitation District No. 21. RECOMMENDATION: It is recommended the City Council adopt Resolution No. 2000- XX approving and accepting the negotiated exchange of property tax revenues resulting from "Annexation No. 682" to County Sanitation District No. 21 FINANCIAL STATEMENT: The City's share of incremental tax growth attributable to the "Annexation No. 682" will be reduced by 0.0442. BACKGROUND/DISCUSSION: When a new project or propertynot currently on a sant '3sewer system desiresoff-site sewage disposal se rvic e it mustannex to the: County Sanitation District. In this case McDonald s Corporation has requested annexation of property located at 21095 Golden Springs Drive to County Sanitation District No. 21. However, the proposed annexation will not only include the property of McDonald's Corporation but the parcels of where the businesses of In -N -Out Burger, Texaco, and Jack -In -The -Box are'located as well. Though the parcels of the aforementioned businesses are currently connected to the sanitary sewer system, they are not included in County Sanitation District No. 21. It is the intent of the District to { incorporate such parcels into the annexation to avoid the creation of "islands." All these businesses have consented to be part of the proposed annexation. Existing property owners on a sanitary sewer system within the District pay their respective cost for disposal services on their tax bill. By law, the District is precluded from collecting the portion of the sewer assessment on the tax increment without negotiating with the City to collect those taxes. Section 99 and 99.1 of the Revenue and Taxation Code requires that prior to any jurisdictional change which result in a special district providing a new service, the governing bodies of all local agencies that receive an apportionment of the property tax from the area must determine the amount of property tax revenues from the annual tax increment to be exchanged between the affected agencies and approve and accept the negotiated exchange of property tax revenues. Therefore, the County Sanitation District requests that the City execute the attached resolution approving andaccepting the negotiated property tax revenue sharing percentages. The City will be'sharing 0.0442 percent of the annual tax incrementattributable to the land area encompassed within "Annexation No. 682. The property tax transfer is based upon the increase which is attributed to the improvements on the property. Prepared by: David G. Liu / John L. Ilasin RESOLUTION NO. 2000=,, 'Said percentage has been determined on the :basis 'of the following contributions. AGENCY PERCENT ` Los Angeles County General Fund 0.1833 Los Angeles County Library 0.0150 Los Angeles County Flood Control 0.0073 Los Angeles County Consolidated Fire Protection 0.1071 Lighting District #10006 -:Diamond Bar 0.0096 Los Angeles County Fire - FFW 0.0089 - City of Diamond.Bar 0.0442 Greater Los Angeles County Vector Control District 0.0002 Three Valleys Municipal Nater District 0.0022 Walnut Valley Water District (WVWD) 0.0004 VWWD-Improvement District #5 0.0009 TOTAL 0.3791 3. No additional transfer'ofproperty tax revenues shall be made from any other taxing agencies to County Sanitation District No. 21 as a result of annexation entitled Annexation No. 682. 4. No transfer of property tax increments from properties within a community redevelopment project which are legally committed to a Community Redevelopment Agency shall be made during the period that such tax increment is legally committed for repayment of the redevelopment project costs. 5. If at any time after the effective date of this resolution, the calculations used herein to determine initial property tax transfers or the data used to perform those calculations are found to be incorrect thus producing an improper or inaccurate property tax transfer, the property tax transfer shall be recalculated and the corrected <transfer shall be implemented for the next fiscal year, and any amounts of property tax received in excess of that which is proper shall be refunded to the appropriate agency. The foregoing resolution was adopted by the Board of Supervisors of the County of Los Angeles, the Board ofDirectors of County Sanitation District No. 21 of Los Angeles County, and the governing bodies of City of Diamond Bar, Greater Los Angeles County Vector Control District, Three Valleys Municipal Water District, Walnut Valley Water District, and Walnut Valley Water District - Improvement District #5, signatory hereto. CITY OF DIAMOND BAR SIGNATURE PRINT NAME AND TITLE ATTEST: Secretary Date (SIGNED IN COUNTERPART) LYNDA BURGESS, criy CLERK CITY OF DIAMOND BAR, CALIFORNIA CITY OF DIAMOND BAR MEMORANDUM TO: Honorable Mayor & Members of the City Council THROUGH: Terrence Belanger, City Manager FROM: Dave Doyle, Deputy City Manager DATE: October 16, 2000 SUBJECT: AQMD LEASE - CLARIFICATION OF STAFF REPORT Please note that there is incorrect information presented in the City Council staff ;report regarding this item. There is a statement in the report that indicates that the AQMD is providing rental abatement for the term of the existing lease between the City and IRPM- A Gateway. This is incorrect the AQMD is proposing to provide rental abatement, in the event the City is unable to sublease the existing office space, until January 2002. Since the existing leases with IRPM - Gateway doesn't expire until June 2002, there is an additional 5 months of lease payments the City could be required to pay. Again, the City would be required to pay for both spaces only in the event the City is unable to lease the existing office space to another organization. Also attached for Council's information is arevised floor plan clearly outlining the portion of the office building that the City is leasing. The area with crosshatch markings is not included in the leased space. Also, this plan represents the existing office layout and does not reflect the tenant improvements required to accommodate the City's needs. CC: Jim DeStefano Deputy City Manager City Clerk's Office TO: VIA: FROM: DATE: SUBJECT: CITY OF DIAMOND -BAR MEMORANDUM Honorable Mayor & Members of the City Council Terrence Belanger, City Managed 'J Dave Doyle, Deputy City Manager October 17, 2000 Consideration of a ten (10) year agreement with the South Coast Air Quality Management District (AQMD) to lease office space (12,117 sq. ft.) for Diamond Bar City Hall at an initial cost of $1.65 per square foot ISSUE Shall the City enter into a ten, (10) year agreement with the AQMD to lease office space and relocate Diamond Bar City Hall to the AQMD campus? RECOMMENDATION: It is recommended that the City Council approve the attached agreement between the City of Diamond Bar and the AQMD to lease 12,117 sq. ft. of office space at a cost of $1.65 per sq. ft. for the first two years, escalating by $0.05 per sq. ft. every two years thereafter. BUDGET IMPLICATION: There is no budget implication associated with the lease agreement, as the existing budget has sufficient funds to accommodate this recommendation. The City currently pays $19,465 per month (or $1.95 per sq. ft.) to lease 9,982 sq. ft. of office space at the existing location. The monthly charge for the new 12,117 sq. ft. office space will be $19,993 (or $1.65 per sq. ft.) a difference of $528 per month. This increase in monthly rent can be absorbed in the existing budget. In addition, the existing lease agreement requires the City to pay 21.8% of all operating expenses for the common areas. Approximately $25,000 is budgeted each year by the City for this expense. As the lease with AQMD is a full service gross lease, there are no additional costs for maintenance of common areas, janitorial services, landscaping or other associated services. f CC Report - AQMD LEASE October 17, 2000 Page 2 It is important to note that there will be other significant costs associated with the relocation of City Hall facilities to the AQMD campus. Recently the City Council appropriated $45,000 for space planning, modular office equipment relocation and construction drawing services to facilitate the relocation of Diamond Bar City Hall. The City will incur additional expenses associated with the relocation including costs for construction of tenant improvements, moving/relocation services, installation of computer network cabling, etc. The specific costs for many of these items will not be known until the completion of the construction drawings and cost estimates currently under development: BACKGROUND: On or about August 18, 1989 the City entered into an agreement with IRPM — Gateway (formerly Diamond Bar Business Associates) to lease office space at the existing City Hall location, 21660 E. Copley Drive. Since that time, several amendments to the original lease agreement have been approved resulting in the relocation of the City Hall office suites, expansion of the City Hall area, etc. The current lease agreement between the City and IRPM - Gateway expires on June 30 2002. On June 14, 2000 the City received a proposal from Mr. Barry Wallerstein, Executive Officer of the AQMD. The proposal provided for the leasing of office space (12,117 sq. ft.) at the AQMD campus for a term of ten years at the following rental rates: Months Rate 1-24 $1.65/sf 25-48 $1.70/sf 49-72 $1.75/sf 73-96 $1.80/sf 97-120 $1.85/sf The proposal also included a rental abatement clause. The rental abatement clause states that the AQMD shall provide free rent through the term of the City's existing lease in the event the City is unable to sublease its existing office space. Therefore, there is no cost risk associated with additional lease', payments by the City for the term of the existing lease. DISCUSSION: The attached lease agreement for City Council consideration includes all of the provisions outlined above. Also as mentioned above, the lease is a full service gross lease that includes utilities, 24-hour security, janitorial services, and all other common area services as part of the base rent. Originally the City and AQMD discussed entering into a lease/purchase agreement which would allow the City to eventually have some ownership of the office space. However, f r - CC Report-AQMD LEASE October 17, 2000 Page 3 the attached agreement is strictly a lease agreement. Due to the complexity ,of developing and negotiating a lease/purchase agreement as well as the City's desire to execute a lease agreement quickly to facilitate the construction of the necessary tenant improvements, it is recommended that the Council approve the lease agreement. Staff will continue to explore thedevelopment of the lease/purchase agreement_ with the AQMD and return for Council consideration at a future meeting. If approved by the City Council, the agreement will be forwarded to the governing board of the AQMD for approval. It is anticipated that the relocationof the City Hall facilities will be complete by January 2, 2000: ATTACHMENTS 1. Proposed lease agreement between the City of Diamond Bar and South Coast Air' Quality Management District. 2. June 14, 2000 letter form Barry Wellerstein, Executive Officer SCAQMD 3. Existing lease agreement between the City and IRPM`- Gateway r South Coast Air Quality- Management District 21865 E. Copley Drive, Diamond Bar, CA 91765-4182 " (909) 396-2000 . http://www.agmd.gov Office of the Executive Officer Barry R. Wallerstein, D.Env. 909.396:2100, fax 909.396 3340 June 14, 2000 Terry Belanger, City Manager City of Diamond Bar 21660 E. Copley Drive, Suite 100 Diamond Bar, California 91765-4177 RE AQMD Building Dear Terry: Pursuant to our discussions regarding the leasing of space at the AQMD building, I am pleased to submit the following staff proposal for your consideration. Final approval would require action by our Governing Board Terry Belanger -2- . June 14, 2000 Commencement: Landlord shall hold space through 1/31/2001 at no cost if the City and AQMD reach agreement by 7/1/2000. Rental Abatement: Landlord shall provide free rent until 1/31/2002 if Tenant is unable to sublease its existing office space. Tenant shall make good faith effort to sublet its current lease space to the end of its term. Amenities: Tenant and Landlord shall enter into a Full Service Gross Lease which shall include utilities, 24-hour security, janitorial services 5 days per week, modular furniture workstations, reasonable use of conference center for City Council Meetings, Planning Committee Meetings and other City -related Meetings. Landlord shall consider re -naming the building the "Diamond Bar Government Center" contingent on District Board approval. Lease/Purchase: Landlord will explore, with the District's Bond Counsel, the possibility of a lease/ purchase of the building where the lease payments will apply toward the purchase. We are enthusiastic about the prospect of City of Diamond Bar becoming ,a tenant in our Building. We have a number of other prospective tenants "on hold." We look forward to your prompt response. Sincerely, Barry R. Wallerstein, D.Env. Executive Officer SO/drw 23521 Paseo de Valencia, Suite 200 •.Laguna Hills, CA 92653 • Telephone (949) 460-5380 • Facsimile (949) 586-0470 06: 39PM A E & W s MAR 01 99 P,2/4 CATION ITER r4 ,, _March 1 1999. 'I*wr,kL b�7�Tv 11Tt{ii•SjyF.f�hY+i, �.'Y� ';+..�.,...:"r'cr,—�+�'a+.r.:�4'rrRQ.�^-n�o,2j'.,.r�r„�„� -. -:. 5^Flgaras rt,rFr; Suic7t5R ceg, �,�_s ' ls:te31 ,,.Cy 'ofDiam:o;.nd Bar ;" , 21ETast6wDri-100 & 190 ve..,..... f��tnxftkt�. t'�9°1 !A.'�jiYd<.� -• ....S.`T.e -.. lao dBar A�91m - F iaim4p,iJ13 21,4-41,66 'Re' Ug" Ar=mcnt daed, „n�7a*Ps3 998 (attached) for stdie No. _loo 190 Sir oebo4dsytt fid; s.h * ,fo-mod ow the us�darsignvd � tnda sold the ' Y sb*vt•dCscribcd �. Pmpe 1![ a�hiCl! you. lease aid � P $! its It C t A:-Wsor tinder the xbove- do cribect leaaa ("Lem")'ta IiiP"-Mt�LI ASSOCIATES, LLC, clo The Muller-omppy, y'' I OW:de V'A' ' a. Sttite 200, LU=,Hills, Ca ifazaia 92� 53, Artwtiou: Mr, John Mi er. Phcjrie hie.'; (949) 46$-0190, FaX No.: (949.)460-5373. Effective this"all a 'L; ` P Ym�ls WMi a& dtaa Uftdgr tine e, and ail notices or demeragiven dr made e � putst�aut w the Luse. . �d dcii to .Ii€P MUllr r Associgsen, LLC at the address set fob abovt, - y• - uely tmLyyda". - DIAMOND -BAR BUSINESS ASSOCIATES, .. lavvara li�ztited psrtarg Y. rfe=Palitan Life Imsurauca Company ' a New York c hoa.'$uoa+asat by trieroar to New Ea0ead Mubw Lifts Ipsute�ere.;C+¢ np y, foi +dad on bdlf'of itis Devalopmeaw Fittpgrd= Acco= . and Phar BY= AEW Red Astatee Advisot$, Im, ;.. .. . a 4�htesrres}susetts corpquR - �toa, its asset zmr and'.vfaot eta duly autptl9ed • . B . '. + Gi Jr Y6 c7gher Meyer, '; .III Titin: � , V14 *4idemt AMENDMENT NO.6 TO STANDARD OFFICE LEASE This AMENDMENT NO. 6 TO STANDARD OFFICE LEASE ("Amendment) is entered into as of this _ day of 1998, by and between DIAMOND BAR BUSINESS ASSOCIATES, a Delaware limited partnership ("Lessor"), and THE CITY OF DIAMOND BAR, a public non-profit corporation ("Lessee"), with respect to the facts set forth in the Recitals below. RECITALS: A. Lessor and Lessee previously entered into that certain Standard Office Lease - Gross on or about August 18, 1989 (the "Original Lease"), as amended by that certain Amendment No. 1 thereto executed as of March 10, 1994; that certain Amendment No. 2 thereto dated as of Iuly 8,1994; that certain Amendment No. 3 thereto dated as of August 1, 1995; that certain Amendment No. 4 thereto dated June 25, 1996; and that certain Amendment No. 5 thereto dated July 2, 1997 (as amended, the "Lease whereby Lessee leases from. Lessor those certain premises (the "Original Premises")commonly known as Suites 100and 190, consisting of approximately 3,854 and 3,171 rentable square fest, respectively, located on the first (1st) floor of that certain building located at 21660 East Copley Drive, Diamond Bar, California (the "Building") B. Capitalized terms which are not>sdefined in this Amandmem have the meanings given to them in the Lease. C. Lessor and Lessee desire to expand the Original Premises to include that certain additional space on the first floor of Building known as Suites 110 and 150 which contain approximately 1,424 and 5,927 rentable square feet, respectively. D. The current Lease term will expire on June 30, 2000. In conjunction with the expansion of the Original Premises, the parties desire to extend the term of the Lease. E. Furthermore, Lessor and Lessee desire that Lessee surrender possession of Suite 100 upon the commencement of the "Extended Term," as defined in paragraph 3 below. F. Lessor and Lessee desire that the Lease be amended accordingly upon the terms and conditions hereinafter set forth. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing Recitals, the mutual covenants and agreements contained in this Amendment, and other good and valuable consideration, the receipt-and ufficiency of which are hereby acknowledged, Lessor'and Lessee agree as follows: 1. Additional Space and New Premises. Lessor hereby leases to Lessee and Lessee hereby leases from Lessor, upon the terms and. conditions set forth in the Lease as amended hereby, that certain space in the Building commonly known as Suites 110 and 150 containing approximately 1,424 and 5,927 rentable square feet, respectively (the "Additional Space"). The Additional Space consists of approximately 7,351 rentable square feet in the aggregate and is depicted on Exhibit"A" attached hereto. The Additional Space and Suite 190 of the Original Premisesi shall be referred to in this Amendment as the "New Premises" and shall consist of approximately 10,522 rentable square feet in the aggregate. As of June 1, 1998, wherever in the.Lease as amended hereby; the term "Premises" is used, such term shall mean and refer to the New Premises: 2. Surrender of Suite 100. On or before June 1, 1998, Lessee shall vacate and surrender the Suite 100 to Lessor in first class order, condition and repair, ordinary wear and tear and damage due to casualty excepted, and shall otherwise comply with the provisions of paragraph 7 of the Original Lease regarding surrender of the Premises as if The term of the Lease had expired as to Suite 100. Landlord and Tenant hereby agree that notwithstanding Tenant's surrender of Suite 100, Tenant shall remain liable for and shall defend, indemnify and hold Landlord harmless from and against any and all claims, demands, actions, causes of action, costs, expenses, damages or judgments arising from Tenant's use and occupancy of Suite 100. The foregoing' obligations shall survive the expiration or earlier termination of the Lease as amended hereby. OC9804 30.143d"C3005-056/04-07-98/RtH 3. Extended Term. The term of Lessee's leasing of the Additional Space shall' commence June 1, 1998 ("New Premises Commencement Date"), and shall expire on June 30, 2002 (the "New Expiration Date"). Effective as of June 1, 1998; the tern► of the Lease with respect to Suite 190 is hereby extended to expire on the New Expiration Date (the "Extended Tenn"). 4. Base Rent. During the Extended Term, Lessee shall pay Base Rent for the New Premises as follows; Rate Per Rentable Base Rent Square Foot Period per Month per Month June 1, 1998 . June 30, 1999: $17,361.30 $1.65 July 1, 1999 -June 30, 2001: ` $19,465.70 $1.85 July 1, 2001 - June 30, 2002: $20,517.90 $1.95 Until June 1, 1998, Lessee shall continue to pay Base Rent for the OriginalPremises of $11,591.25 per month in accordance with paragraph 2 of Amendment No. 5. 5. Lessee's Share. Effective as of June 1, 1998, Lessee's Share of Operating Expense Increase for the New Premises will be 21.8%. 6. Parkin. Notwithstanding any contrary provision in the Lease, effective as of the June 1, 1998, Lessee shall be entitled to use a maximum of forty-two (42) parking spaces at monthly charge for the duration of the Extended Term, subject, however, to the payment of Lessee's'Share of Operating Expense Increase with the respect to the parking areas. All such spaces shall be unreserved and shall be used by Lessee on a non-exchisive, in -common basis with other tenants of the Building. Until June t; 1998,; Lessee's parking allocation shall remain twenty-eight (28) spaces as provided in paragraph 4 of Amendment No. 1 7.. Base. Year. For purposes of calculating the Operating Expense Increase for each Comparison Year during the Extended "Term, the Base Year shall be calendar year 1998. Notwithstanding paragraph 54 of Rider No. I to the Original Lease, Operating Expenses for the Base Year and the Comparison Years shall be adjusted to reflect an assumption that the Building is ninety-five percent (9501.) occupied and fully assessed for real property tax purposes during such Year. 8. Condition of Additional Snace. Lessor shall improve the Additional Space in accordance with the terms of the Work' Letter Agreement attached hereto as Exhibit "B". 9. ' Lessor's Liability. The following provision is hereby added to paragraph 17 of the Original Lease: "Notwithstanding anything contained in this Lease to the contrary, the obligations of Lessor under this Lease (including any actual or alleged breach or default by Lessor) do not constitute personal obligations of the individual partners, directors, officers, members or shareholders of Lessor or Lessor's partners, and Lessee shall not seek recourse against the' individual partners; directors, officers, members or shareholders of Lessor or against Lessor's partners or any otherpersons or entities having any interest in Lessor, or any of their personal assets for satisfaction of any liability with respect to this Lease. In addition, in consideration of the benefits accruing hereunder to Lessee and notwithstanding anything contained in this Lease to the contrary, Lessee hereby covenants and agrees for itself and all of its successors and assigns that the liability of Lessor for its obligations under this Lease (including any Iiability as a result of any actual or alleged failure, breach or default hereunder, by Lessor), shall be limited solely to, and Lessee's' and its successors` and assigns' sole and exclusive remedy shall be against, Lessor's interest in the Building and proceeds therefrom, and no other assets of Lessor." 10. Insurance. Paragraph 8.1 of the Original Lease is hereby revised such that Lessee shall carry"Commercial General Liability Insurance" in lieu of "Comprehensive General Liability Insurance."' _2_ OC990430.143/1"C3005-056/04-07-98/gtb r- } t - 11 Waiver of Subrogation. Paragraph 8.6 of the Original Lease is hereby deleted and replaced by the following: "Lessor and Lessee hereby waive their rights against each other with respect to any claims or damages or losses which are caused by or result from (a) property damage insured against under any property insurance policy carried by,Lessor or Lessee (as the case may be) pursuant to the provisions of the Lease as amended hereby and enforceable at the time of such damage or loss, or (b) property damage which would have been covered under any insurance required to be obtained and maintained by Lessor or Lessee (as the case may be) under the Lease as amended hereby (as applicable) had such insurance been obtained and maintained as required therein. The foregoing waivers shall be in addition to, and not a ' limitation of, any other waivers or releases contained in the Lease as amended hereby. Each party shall cause each property insurance policy required to be obtained by it pursuant to the Lease as amended hereby to provide that the insurer waives all rights of recovery by of subrogation against either Lessor or Lessee, as the case may be, in, connection with any claims, losses and damages covered by such policy. If either party fails to maintain property insurance required hereunder, such insurance shall be deemed to be self-insured with a deemed full waiver of subrogation as set forth in the immediately preceding sentence." 12. No Other Modification. Effective as of the New, Premises Commencement Date, without in any way limiting any other provisions of the Lease which are superseded by this Amendment, paragraphs 50, 52, 54 and 55 of Rider No. 1 to the Original Lease and paragraphs 1 and 2 of Amendment No. 5 are hereby deleted as inapplicable to the Extended Term. Except as specifically modified in this Amendment, the Lease remains in full force and effect between the parties hereto, as modified by this Amendment. To the extent of any inconsistency or conflict between the terms and conditions of the Lease and the terms and conditions of this Amendment, the terms and conditions of this Amendment shall prevail and control. This Amendment embodies the entire understanding between Lessor and Lessee with respect to its subject matter and can be changed only by an instrument in writing signed by Lessor and Lessee. This Amendment may be executed in counterparts, each of which shall be deemed an original; but all of which, together, shall constitute one in the same Amendment. IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as of the date first written above. "Lessor" DIAMOND BAR BUSINESS ASSOCIATES, a Delaware limited partnership By: "Metropolitan Life InsuranceCompany, a New York corporation, as successor by merger to New England Mutual Life Insurance Company, a Massachusetts corporation, for and on behalf of its Developmental Properties Account Its: General Partner By: AEW Real Estate Advisors, Inc:, a Massachusetts corporation, Its: Asset Manager and Advisor By: 16 -21 rHR1ST0P1iF[t �1F1"F Title: Vicc frsident (SIGNATURES CONTINUED ON NEXT PAGE] -3- OC980430 1439"C3005-056104-07-98/gtb'. WORK LETTER AGREEMENT [TURNKEY] This WORK LETTER AGREEMENT CVork'Letter Agreement") is entered into as of the _ day of 1998 by and between DIAMOND BAR ASSOCIATES, -a Delaware limited partnership ("Lessor"), and THE CITY OF DIAMOND BAR, a public non-profit corporation ("Lessee"). RECITALS: A. ` Concurrently with the execution of this Work Letter Agreement, Lessor and Lessee have entered into an amendment (the "Amendment") amending a lease (the "Lease") covering certain space (the "Additional Space") more particularly described in the Amendment. All terms not defined herein shall have the same meaning as set forth in the Amendment. To the extent applicable, the provisions of the Lease as amended by the Amendment are hereby incorporated herein by this reference. B. In order to induce Lessee to enter into the Amendment and in consideration of the mutual covenants hereinafter contained, Lessor and Lessee hereby agree as follows: 1. TENANT IMPROVEMENTS. Lessor shall construct and, except as provided below to the contrary, pay for the entire cost of constructing the tenant improvements in the Additional Space ("Tenant Improvements") described by the plans and specifications identified in Schedule "1 attached hereto and incorporated herein by this reference (the "Plans"). Lessee may request changes to the Plans provided that (a) the changes shall not be of a lesser qualitythan Lessor's standard specifications for tenant improvements for the Building, as the same may be changed from time to time by Lessor and communicated to Lessee (the "Standards"); (b) the changes conform to applicable governmental regulations and necessary governmental permits and approvals can be secured; (c) the changes do not require building service beyond the levels normally provided to other tenants in the Building; (d) the change do not have any adverse affect on the structural integrity or systems of the Building; (e) the changes will not, in Lessor's opinion, unreasonably delay construction of the Tenant Improvements; and (f) Lessor has determined in its sole discretion that the changes are of a nature and quality consistent with the overall objectives of Lessor for the Building. if Lessor approves a change requested by Lessee, then, as'a condition to the effectiveness of Lessor's approval, Lessee shall payto Lessor upon demand by Lessor the increased cost attributable to such change, if any, as reasonably determined by Lessor. All costs attributed to any changes by Lessee will be communicated in writing to Lessee and approved by Lessee prior to construction of such changes. To the extent any such change results in a delay of completion of construction of the Tenant Improvements, then such delay shall constitute a delay caused by Lessee as described below. .2. CONSTRUCTION OF TENANT IMPROVEMENTS. Upon Lessee's payment to Lessor of the total amount of the cost of any changes to the Plans, if any, Lessor's contractor shall commence and diligently proceed with the construction of the Tenant Improvements, subject to Tenant Delays (as described in paragraph 4 below) and Force Majeure Delays (as`described in paragraph 3 below). Promptly upon the commencement of the Tenant Improvements, Lessor shall f rmish'Lessee with a construction schedule letter setting forth the projected completion dates therefor and showing the deadlines for any actions required to .be taken by Lessee during such construction, and Lessor may from time to time during construction of the Tenant Improvements modify such schedule. 3. NEW PREMISES COMMENCEMENT DATE SUBSTANTIAL COMPLETION: AND DELIVERY OF POSSESSION. (a) ` New Premises Commencement Date. The Extended Term shall commence on June 1, 1998 (the "New Premises Commencemerit Date"). (b) Substantial Completion and Punch-Lista The Tenant Improvements shall be deemed to be "substantially completed when Lessor certifies in writing to Lessee that Lessor: (i) is able to provide Lessee reasonable access to the Additional Space; (ii) has substantially completed the Tenant Improvements in accordance with the Plans, other than decoration and minor "punch -list" type items and adjustments which do not materially interfere with Lessee's access to or use of the Additional Space; and (iii) has obtained a temporary certificate of occupancy or other equivalent approval, if necessary, from the local governmental authority permitting occupancy of the Additional Space;' Within ten (10) days after receipt of such certificate from Lessor's contractor, Lessee shall conduct a walk-through inspection of the Additional Space with Lessor and provide to Lessor a written punch -list specifying those decoration and other punch -list items which require completion, which items Lessor shall thereafter diligently complete. EXIi1BiT "B" �r,oQne�n in�rf ar.,trrtnnS.nsF/ncs� oR/nth-- AMENDMENT NO.6 TO STANDARD OFFICE LEASE This AMENDMENT NO.6 TO STANDARD OFFICE LEASE ("Amendment") is entered into as of this _ day of , 1998; by and between DIAMOND BAR BUSINESS ASSOCIATES, a Delaware limited partnership ("Lessor"), and THE CITY OF DIAMOND BAR, a public non-profit corporation ("Lessee"), with respect to the facts set forth in the Recitals below. RECITALS A. Lessor and Lessee previously entered into that certain Standard Office Lease Gross on or about August '18, 1989 (the "Original Lease"), as -amended by that certain Amendment No. I thereto executed as of March 10, 1994; that certain Amendment No. 2 thereto dated as of July 8,1994; that certain Amendment No. 3 thereto dated as of August 1, 1995; that certain Amendment No. 4 thereto dated June 25,1996; and that certain Amendment No 5 thereto dated July 2, 1997 (as amended, the "Lease"), whereby Lessee leases from Lessor those certain premises (the "Original Premises") commonly known as Suites 100 and 190, consisting of approximately 3,854 and 3,171 rentable square feet, respectively, located on the first '(Ist) floor of that certain building located at 21660 East Copley Drive, Diamond Bar, California (the "Building„) B. Capitalized terms which are not defined in this Amendment have the meanings given to them in the Lease: C. Lessor and Lessee desire to expand the Original Premises to include that certain additional space on the first floor of the Building known as Suites 110 and 150 which contain approximately 1,424 and 5,927 rentable square feet, respectively. D. The current Lease term will expire on .Tune 30, 2000. In conjunction with the expansion of the Original Premises, the parties desire to extend the term of the Lease. E. Furthermore, Lessor and Lessee desire that Lessee surrender possession of Suite 100 upon the commencement of the "Extended Term," as defined in paragraph 3 below. F. Lessor and Lessee desire that the Lease be amended accordingly upon the terms and conditions hereinafter set forth. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing Recitals, the mutual covenants and agreements contained in this Amendment, and other good and valuable consideration,, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee agree as follows: 1. Additional Space and New Premises. Lessor hereby leases to Lessee and Lessee hereby leases from Lessor, upon the terms and conditions set forth in the Lease as amended hereby, that certain space in the Building commonly known as Suites 110 and 150 containing approximately 1,424 and 5,927 rentable square feet; respectively (the "Additional Space"). The Additional Space consists of approximately 7,351 rentable square feet in the aggregate and is depicted on Exhibit "A" attached hereto. The Additional Space and Suite 190 of the Original Premises shall be referred to in this Amendment as the "New Premises" and shall consist of approximately 10,522 rentable square feet in the aggregate. As of June 1, 1998, wherever in the, Lease as amended hereby, the term "Premises" is used, such term shall mean and refer to the New Premises. 3. Extended Term. The term of Lessee's leasing of the Additional Space shall commence June 1, 1998 ("New Premises Commencement Date"), and shall expire on June 30, 2002 (the "New Expiration Date"). Effective as of June 1, 1998, the term of the Lease with. respect to Suite 190 is hereby extended to expire on the New Expiration Date (the "Extended Term")._ 4. Base Rent. During the Extended Term, Lessee shall pay Base Rent for the New Premises as follows: Rate Per Rentable Base Rent Square Foot Period per Manth per Month June 1,`1998 - June 30,1999: $17,361.30 $1.65 July 1, 1999 - June 30 2001: $19,465.70 $1.85 July 1, 2001 -June 30 2002: $20,517.90 $1.95 Until June 1, 1998, Lessee,shall continue to pay Base Rent for the Original Premises of $11,591.25 per month in accordance with paragraph 2 of Amendment No. 5. 5. Lessee's Share. Effective as of June 1, 1998,,Lessee's Share of Operating Expense Increase for the New Premises will be 21.8%. 6. Parking. Notwithstanding any contrary provision in the Lease, effective as of the June 1, 1998, Lessee shall be entitled to use a maximum of forty-two (42) parking spaces at no monthly charge for the duration of the Extended Term, subject, however, to the payment of Lessee's Share of Operating Expense Increase with the respect to the parking areas. All such spaces shall be unreserved and shall be used by Lessee on a non. -exclusive, in -common basis with other tenants of the Building. Until June 1, 1998, Lessee's; parking allocation shall remain twenty-eight (28) spaces as provided in paragraph 4 of Amendment No. 1. 7.. Base Year. Forppuiposes of calculating the Operating Expense Increase for each Comparison Year during the Extended Tenn, the Base Year shall be calendar year 1998. Notwithstanding paragraph 54 of Rider No. 1 to the Original Lease, Operating Expenses for the Base Year and the Comparison Years shall be adjusted to reflect an assumption that the Building is ninety-five percent (95%) occupied and fully assessed for real property tax purposes during such Year: 8. Condition of Additional Space. Lessor shall improve the Additional Space in accordance with the terms of the Work Letter Agreement attached hereto as Exhibit "B". 9. Lessor's Liability. The: following provision is hereby added to paragraph 17 of the Original Lease: "Notwithstanding anything contained in this Lease to the contrary, the obligations of Lessor under this Lease (including any actual or alleged breach or default by Lessor) do not constitute; personal obligations of the individual partners, directors, officers, members or shareholders of Lessor or Lessor's partners, and Lessee shall not seek recourse against the individual partners, directors, officers, members or shareholders of Lessor or against Lessor's partners or any other persons or entities having any interest in Lessor, or any of their personal assets for satisfaction of any liability with respect to this Lease. In addition, in consideration of the benefits accruing hereunder to Lessee and notwithstanding anything contained in this Lease to the contrary, Lessee hereby covenants and 11. Waiver of Subrogation. Paragraph 8.6 of the Original Lease is hereby deleted and replaced by the following: "Lessor and Lessee hereby waive their rights against each other with respect to any claims or damages or losses which are caused by or result from (a) property damage insured against under any property insurance policy carried by Lessor or Lessee (as the case may be) pursuant to the provisions of the Lease as amended hereby and enforceable at the time of such damage or loss, or (b) property damage which would have been covered under any insurance required to be obtained and maintained by Lessor or Lessee (as the case may be) under the Lease as amended hereby (as applicable) had such insurance been obtained and maintained as required therein. The foregoing waivers shall be in addition to, and not a limitation of, any other waivers or releases contained in the Lease as amended hereby. Each party shall cause each property insurance policy required to be obtained by it pursuant to the Lease as amended hereby to provide that the insurer waives all rights of recovery by way of subrogation against either Lessor or Lessee, as the case may be, in connection with any claims, losses and damages covered by such policy. If either party fails to maintain property insurance required hereunder, such insurance shall be deemed to be self-insured with a deemed full waiver of subrogation as set forth in the immediately preceding sentence." 12. No Other Modification: Effective as of the New Premises Commencement Date, without in any way limiting any other provisions of the Lease which are superseded by this Amendment, paragraphs 50, 52,' 5.4 and 55 of Rider No. 1 to the Original Lease and paragraphs l and 2 of Amendment No. 5 are hereby deleted as inapplicable to the Extended Term. Except as specifically modified in this Amendment, the Lease remains in full force and effect between the parties hereto, as modified by this Amendment. To the extent of any inconsistency or conflict between the terms and conditions of the Lease and the terms and conditions of this Amendment, the terms and conditions of this Amendment shall prevail and control. This Amendment embodies the entire understanding between Lessor and Lessee with respect to its subject matter and can be changed only by an instrument in writing signed by Lessor and Lessee. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one in the same Amendment. IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as of the date first written above. "Lessor" DIAMOND BAR BUSINESS ASSOCIATES, a Delaware limited partnership By: Metropolitan Life Insurance Company, a New York corporation, as successor by merger to New England Mutual Life Insurance Company, a Massachusetts corporation,` for and on behalf of its Developmental Properties Account Its: General Partner By. AEW Real Estate Advisors, Inc., a Massachusetts corporation, WORK LETTER AGREEMENT [TURNKEY] This WORK LETTER AGREEMENT ("Work Letter Agreement") is entered into as, of the day of , 1998 by and between DIAMOND BAR ASSOCIATES, a Delaware limited partnership ("Lessor"), and THE CITY OF DIAMOND BAR, a public non-profit corporation ("Lessee"). RECITALS. A. Concurrently with the execution of this Work Letter Agreement, Lessor and Lessee have entered inter an amendment (the "Amendment") amending lease (the "Lease") covering certain space (the "Additional Space") more particularly described in the Amendment. All terms not defined herein shall have the same meaning as set forth in the Amendment. To the extent applicable, the provisions of the Lease as amended by the Amendment are hereby incorporated' herein by this reference. B. ;In order to induce Lessee to enter into the Amendment and in consideration of the mutual covenants hereinafter contained, Lessor and Lessee hereby agree as follows: 1. TENANT IMPROVEMENTS. Lessor shall construct and, except as provided below to the contrary, pay for the entire cost of constructing the tenant improvements in the Additional Space ("Tenant Improvements") described by the plans and specifications identified in Schedule "V attached hereto and incorporated herein by this reference (the "Plans"). Lessee may request changes to the Plans provided that (a) the changes shall not be of a lesser quality than Lessor's standard specifications for tenant improvements for the Building, as the same may be changed from time to time by Lessor and communicated to Lessee (the "Standards"); (b) the changes conform to applicable governmental regulations and necessary governmental permits and approvals can be secured; (c) the changes do not require building service beyond the levels normally provided to other tenants in the Building; (d) the changes do not have any adverse affect on the structural integrity or systems of the Building; (e) the changes will not, in Lessor's opinion, unreasonably delay construction of the Tenant Improvements; and (f) Lessor has determined in its sole discretion that the changes are of a nature and quality consistent with the overall objectives of Lessor for the Building. If Lessor approves a change, requested by Lessee, then, as a condition to the effectiveness of Lessor's approval, Lessee shall pay to Lessor upon demand by Lessor the increased cost attributable to such change, if any, as reasonably determined by Lessor. All costs attributed'to any changes by Lessee will be communicated in writing to Lessee and approved by Lessee prior to construction of such changes. To the extent any such change results in a delay of completion of construction, of the Tenant Improvements, then such delay shall constitute a delay caused by Lessee as described below. 2. CONSTRUCTION ' -OF TENANT IMPROVEMENTS. Upon Lessee's payment to Lessor of the total amount of the cost of any changes to the PIans, if any, Lessor's contractor shall commence and diligently proceed with the construction of the Tenant Improvements, subject to Tenant Delays (as described in paragraph 4 below) and Force Majeure Delays (as described in paragraph 5 below). Promptly upon the commencement of the Tenant Improvements, Lessor shall furnish Lessee with a construction schedule letter setting forth` the projected completion dates therefor and showing the deadlines for any actions required to be taken by Lessee during ,such construction, and Lessor may from time to time during construction of the Tenant Improvements modify such schedule. 3. NEW PREMISES COMMENCEMENT DATE, SUBSTANTIAL COMPLETION, AND DELIVERY OF POSSESSION. . (a) New Premises: Commencement Date. The Extended Term shall commence on T__�_.l T(1!\O hL_ TIA.T____T__�•____ !'_�W_�.:_��a T�._II\ - _. (c) Delivery of Possession. Lessor agrees to deliver possession of the Additional Space to Lessee when the Tenant Improvements have been substantially completed in accordance with subparagraph (b) above. The parties estimate that Lessor will deliver possession of the Additional Space to Lessee and the Extended Term will commence on or before June 1, 1998. Lessor shall use its commercially reasonable efforts to cause the Tenant Improvements to be substantially completed on or before June-1,1998. Lessee agrees that if Lessor is unable to deliver possession of the Additional Space to Lessee on or prior to June 1, 1998, neither the Amendment nor the Lease shall be void or voidable, nor shall Lessor be liable to Lessee for any loss or damage resulting therefrom, but if such late delivery is due to Lessor's negligence or willful misconduct or due to any Force Majeure Delay(s), then, as Lessee's sole remedy, the New Premises Commencement Date shall be extended one (1) day for each day Lessor is delayed in delivering possession of the Additional Space to Lessee. 4.1 TENANT DELAYS. For purposes of this Work Letter Agreement, "Tenant Delays" shall mean any delay in the completion of the Tenant Improvements resulting from any or all of the following:(a) Lessee's failure to timely perform any of its obligations pursuant to this Work Letter Agreement, including any failure to complete, on or before the due date therefor, any action item which is Lessee's responsibility pursuant to the construction schedule delivered by Lessor to Lessee pursuant to this Work Letter Agreement, (b) Lessee's changes to the Plans; (c) Lessee's request for materials, finishes, or installations which are not readily available or which are incompatible with the Standards; (d) any delay of Lessee in making payment to Lessor for Lessee's share of any costs in excess of the cost of the Tenant Improvements as described in the Plans; or (e) any other act or failure -to act by Lessee, Lessee's employees, agents, architects, independent contractors, consultants and/or any other person performing or required to perform services on behalf of Lessee. 5. FORCE MAJEURE DELAYS. For purposes of this Work Letter, "Force Majeure Delays shall mean any actual delay in the construction of the Tenant improvements which is beyond the reasonable control of Lessor.' IN WITNESS WHEREOF, the undersigned, Lessor and Lessee have caused this Work Letter Agreement to be duly executed by their duly authorized representatives as of the date set forth above. "Lessor" DIAMOND BAR BUSINESS ASSOCIATES, a Delaware limited partnership By: Metropolitan Life Insurance Company, aNew York corporation, as successor by merger to New England Mutual Life Insurance Company, a Massachusetts corporation, for and on behalf of its Developmental Properties Account Its: General Partner By: AEW Real Estate Advisors, Inc., a Massachusetts corporation, Its: Asset Manager and Advisor By: ame'. F t'um a)PHPR A1F.YFR itle: Vice Yrs int "Lessee" THE CITY OF DIAMOND BAR, n rn��in rnh�nrv�i* nnrnnrelinn - - ,.. ' THE PLANS [To Be Supplied] " STANDARD MULTI-TENANT OFFICE LEASE - GROSS AMERICAN INDUSTRIAL REAL ESTATE' ASSOCIATION 1. Basic Provisions ("Basic Provisions"). 1.1 Parties: This Lease ("Lease-), dated for reference purposes only October 11, 2000 is made by and between South Coast Air Quality Management District a public agency andeity of Diamond Bar, a municipal corporation ("Lessee'), (collectively the "Parties", or individually a "Party"). 1.2(a) Premises: That certain portion of the Project (as defined below), known as Suite Numbers(s) Booms 1144 & 1168 south building ground floor(s), consisting of approximately 12, 117 rentable square feet and approximately 12, 117 useable square feet("Premises") as depicted in Exhl6lt A attached. The Premises are located at: 21865 E. Copley Drive in the City of Diamond Bar County of Los Angeles,SlateoPCalifornia with Zip code 91765-4182. in addition to Lessee's rights to use and occupy the Premises as hereinafter specified, Lessee shall have non-exclusive rights to the Common Areas (as defined in Paragraph 2.7 below) as hereinafter specified, but shall not have any rights to the roof; the exterior walls, the area above the dropped ceilings, or the utility raceways of the building containing the Premises ("Building") or to any other buildings in the Project. The Premises, the Building, the Common Areas, the land upon which they are located, along with all other buildings and improvements thereon, are herein collectively referred to as the "Project." The Project consists of approximately N/A rentable square feet. (See also Paragraph 2) 1.2(b) Parking: 45 unreserved and 3 reserved vehicle parking spaces at a monthly cost of $ - 0 - per unreserved space and $ - 0 - per reserved space. (See Paragraph 2:6) 1-3 Term: Ten (10) years and - 0 - months ("Original Term") commencing Jan. 1, 2001 ("Commencement Date") and ending December 31, 2010 ("Expiration Date"). (See also Paragraph 3) 1.4 Early Possession:November '1, 2000 - See Addendum ("Early Possession Date"). (See also Paragraphs 3.2 and 3.3) 1.5 Base Rent: $19, 993 OS per month ("Base Rent)% payable on the first day of each month commencing See Addendum (Sea 21SO Paragraph 4) 0 If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted. 1.6 Lessee's Share of Operating Expense increase: - 0 - percent (-0-%) ("Lessee's Share"). Lessees ..iinble a..r leasein the orad.., 1.7 Base Rent and Other Monies Paid Upon Execution: (a) Base Rent: $r0- for the period--- - - - - -- (b) Security Deposit: $ - 0 - ("Security Deposit"). (See also Paragraph 5) (c) Parking; $- 0 for the period - 0 - (d) Other. $-00 for -0- (e) 0- (e) Total Due Upon Execution of this Lease: $See Addendum 1.8 Agreed Use: municipal government offices (See also Paragraph 6) 1.9 Base Year; Insuring Party. The Base Year is N/A Lessor is the "Insuring Party". (See also Paragraphs 4.2 and 8) 1.10 Real Estate Brokers: (See also Paragraph 15) (a) Representation: The following real estate brokers ( the. "Brokers,) and brokerage relationships exist in this transaction (check applicable boxes): ❑ N/A < represents lessor exclusively ("Lessor's Broker"); ❑ N/A represents Lessee exclusively ("Lessee's Broker'): or ' ❑ N/A represents both Lessor and Lessee ("Dual Agency"). (b) Payment to Brokers: Upon execution and delivery of this Lease by both Parties, Lessor shall pay to the Brokers the brokerage fee agreed to in a separate written agreement (or if there is no such agreement, the sum of N/A or N/A % of the total Base Rent for the brokerage services rendered by the Brokers). 1.11 Guarantor. The obligations of the Lessee under this Lease shall be guaranteed by N/A ("Guarantor"), (See also Paragraph" 37) 1.12 Business Hours for the Building:: ----- am. to ----- p.m., Mondays through Fridays (except Building Holidays) ' and - - - - - a.m. to - - - - - p.m on Saturdays (except Building Holidays). "Building Holidays" shall mean the dates of observation of New Year's Day, President's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day, and See Addendum 1:13 Lessor Supplied Services. Notwithstanding the provisions of Paragraph 11.1, Lessor is NOT obligated to provide the following: `. ❑ Janitorial services ❑ Electricity - - ❑ Other (specify): 1-14 Attachments. Attached hereto are the following, all of which constitute apart of this lease: ❑' an Addendum consisting of Paragraphs 51. through 5 5 0 a plot, plan depicting the Premises (see Exhibit,', attached); ❑ a current set of the Rules and Regulations; THE IN5ERTED PROY151ON5 OF PARAGRAPH.ONE 5UPER6EPE ANY NON-APPLICABLE OR INCON515TENT PROy15101,15OFTH15 5TANDARD FORM Initials - initials Page 1 of 12 Cc) 1999 American Industrial Real EstMp Associafinn RF�itg Fn ktiann ncr � omar ❑ a Work Letter: ❑ a janitorial schedule; ❑ other (specify): 2. Premises.l 2.1 Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set forth in this. Lease. Unless otherwise provided herein, any statement of size set forth in this Lease, or that may have been, used in calculating Rent, is an approximation which the Parties agree is reasonable and any payments based thereon are not Is jectto revision whether or not the actual size is more or less. Note: Lessee is advised to verify the actual size prior to executing this Lease. 2.2 Condition. Lessor shall deliver the Premises to Lessee in a clean condition on the Commencement Date or the Early Possession Date, whichever first occurs ("Start Date"), and warrants that the existing electrical, plumbing, fire sprinkler, lighting, heating, ventilatingand air conditioning systems (HVAC"), and all other items which the Lessor is obligated to construct pursuant to the Work Letter attachedhereto, if any, other than those ` constructed by Lessee, shall be in good operating condition on said date. 2.3 Compliance. Lessor warrants that the improvements comprising the Premises and the Common Areas comply with the building codes that were in effect at the time that each such improvement, or portion thereof, was constructed, and also with all applicable laws, covenants or restrictions of record, regulations, and ordinances ("Applicable Requirements") in effect on the Start Date. Said warranty does not apply to the use to which Lessee with put the Premises, modifications which may be required by the Americans with Disabilities Act or any similar laws as a result of Lessee's use (see Paragraph 50), or to any Alterations or Utility Installations (as, defined in Paragraph 7.3(a)) made or to be made by Lessee. ,NOTE: Lessee is responsible for determining whether or not the zoning and other Applicable Requirements are appropriate for Lessee's intended use, and acknowledges that past uses of the Premises may no longer be allowed. If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-pompliande, rectify the same. If the Applicable Requirements are hereafter changed so as to require during the term of this tease the construction' of an addition to or an alteration of the Premises, the remediation of any Hazardous; Substance, or the reinforcement or other physical modification of the Premises ("Capital Expenditure"), Lessor and Lessee shall allocate the cost of such work as follows: (a) Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required as a result of the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however that if such Capital Expenditure is required during the last 2 years of this Lease aad or the cost thereof exceeds 6 months' Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in. writing: within 10 days after receipt of Lessee's termination notice that Lessor has elected to pay the difference between them actual cost thereof-and the amount equal to 6 months' Base Rent. If Lessee elects termination; Lessee shall immediately cease the use of the Premises Which requires such Capital Expenditure and deliver to. Lessor written notice specifying a termination date at least 90 days thereafter: Such termination date shall, however, in no event be earlier than the last day that Lessee could legally utilize the Premises without commencing such Capital • Expenditure: (b) If such Capital Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally mandated seismic' modifications), then Lessor and Lessee shall allocate the cost of such Capital Expenditure as follows: Lessor shall advance the funds necessary for such Capital Expenditure but Lessee shall be obligated to pay, each month during the remainder of the term of this Lease, on the date on which Base Rent is due, an amount equal to the product of multiplying Lessee's share of the cost of such Capital Expenditure (the percentage specified in g p ydenominatoris 144 lie. 11144th of the cost permonth). Lessee shall pay interest ' ontheParagraph u amortized balance of Lessee's share at al rate that is t commercially res able in the judgment of Lessor's accountants. Lessee may, however, prepay its obligation at any time. Provided;, however, that if such Capital Expenditure is required during the last 2 years of this Lease or if Lessor reasonably determines that it isnot economically feasible to pay its share thereof, Lessor shall have the option to terminate this Lease upon 90 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within 10 ,days after receipt of Lessor's termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not elect to terminate and fails to tender its share of any such Capital Expenditure, Lessee may advance such funds and deduct same with'Interest: from Rent until Lessor's share of such costs have been fully paid. If Lessee is unable to finance Lessor's share, or if the balance of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee Oman offset basis, Lessee shall have the right to terminate this Lease upon 30 days written notice to Lessor. (c) Notwithstanding the above, the provisions concerning Capital Expenditures.are intended to apply only to nonvoluntary, unexpected,' and new Applicable' Requirements. If the Capital Expenditures are instead triggered by Lessee as a:result of an actual or proposed change in use; change in intensity of use, or modification to the Premises then; and.in that event, Lessee shall be fully responsible for the cost thereof, and Lessee shall not have any right to terminate this Lease. 2.4 Acknowledgements. Lessee acknowledges that: (a) Lessee has been advised by Lessor and/or Brokers to satisfy itself with respect to the condition of the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance , with Applicable Requirements), and their suitability for Lessee's intended use, (b) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, and (c) neither lessor, Lessor's' agents, nor Brokers have made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that (i) Brokers have made no representations, promises or warranties concerning Lessee's ability to honor the Lease or suitability to occupy the Premises, and (ii) it is Lessor's sole responsibility to investigate the financial capability and/or suitability of all proposed tenants. 2.5 Lessee as Prior Owner/Occupant, The warranties made by Lessor in Paragraph 2 shall be of no force or effect if immediately prior to the Start Date, Lessee was the owner or occupant of the Premises. in such event, Lessee shall be responsible for any necessary corrective work. 2.6 Vehicle Parking. So long as Lessee is not in default, and subject to the Rules and Regulations attached hereto, and as established by Lessor from time to time, Lessee shall be entitled to rent -ane use the number of parking spaces specified in Paragraph 1,2(b) at the rental Pate applinable fr.rn frn. in torn, fair FnentWy pa*IA@ as sal by Lesser: and lop its li (a) If I essee the owner of the vehicle commits,' permits or allows any of the prohibited. activities described in the Lease or the rules then In effect, then Lessor shall have the right, without notice, in addition to such other rights and remedies that it may have, to, remove or tow away the vehicle- involved and charge the cost to Lessee; which cost shall be immediately payable upon demand by Lessor. (13) :P18 WF1Ihl5'F6A1i PeF pairking sp@Ge spesifed in PaFagFaPh 1.2(b) is sub�est le shaRge upon ag days P0AFMTif1AA nnt;GA tG INTENTIONALLY DELETED. 2.7 Common Areas -'Definition. The tern "Common Areas" is defined as all areas and facilities outside the Premises and within the exterior boundary line of the Project and interior utility raceways: and installations within the Premises that are provided and designated by the Lessor from time to time for the general nonexclusive use of Lessor, Lessee and other tenants of the Project and their respective employees, 'suppliers; shippers, customers, contractors and invitees, including, but not limited to, common entrances, lobbies, condors, stairwells, public restrooms, elevators, parking areas, loading and unloading, areas, trash areas; roadways,' walkways, driveways and landscaped areas. 2.B Common Areas - Lessee's Rights. Lessor grants to Lessee, for the benefit of Lessee and its employees, suppliers,. shippers, contractors, customers and invitees, during the term of. this Lease, the nonexclusive right to use, in common with others entitled to such use, the Common g governing subject to any rights, powers, and privileges reserved by Lessor under the terms hereof or under the terms of any rules Areas as they exist from time to time, and regulations or restrictions ovemin the use of the Project. Under no circumstances shall the right herein ranted to use the Common Areas be deemed to include the right to store any property, temporarily or permanently, in the Common Areas. Any such storage shall be permitted only by the prior written consent of Lessor or Lessor's designated agent, which consent may be revoked at any time. In the event that any unauthorized storage shall occur then Lessor shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove the property and charge the cost to Lessee, which cost shall be immediately payable upon demand by Lessor. 2.9 Common Areas - Rules and Regulations. Lessor or such other person(s) as Lessor may appoint shall have the exclusive control and management of the Common Areas and shall have the right, from time to time, to adopt, modify, amend and enforce reasonable rules and regulations l - , ("Rules and Regulations") for the management, safety,. care, and cleanliness of the grounds, the parking and unloading of vehicles and the preservation .of good order, as well as for the convenience of other occupants or tenants of the Building and the Project and their invitees. The Lessee agrees to abide by and conform to all such Rules and Regulations, and to cause its employees, suppliers, shippers, customers; contractors and invitees to so abide' and conform. Lessor shall not be responsible to Lessee for the noncompliance withlsaid Rules. and Regulations by other tenants of the Project. -:2.10 Common Areas -Changes. Lessor shall have the right, in Lessor's sole discretion, from time to time:. (a) To make changes to the Common Areas, Including, without limitation, changes in the location, size, shape and number of the lobbies, windows,: stairways, air shafts, elevators, *escalators. restrooms, 1 driveways, entrances, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways and utility raceways; (b) To close temporarily any of the Common Areas for maintenance purposes so long as reasonable access to the Premises remains available; - - (c) To designate' other land outside the boundaries of the Project to be apart of the common Areas: (d) To add additional buildings and improvements to the Common Areas; (e) To use the Common Areas while engaged in making additional improvements, repairs or alterations to the Project, or any Initials Initials Paget of 12 portion thereof; and i (f) To do and perform such other ads and make such other changes in, to or with respect to the Common Areas and Project as Lessor may; in the exercise of sound business judgment, deem to be appropriate. ± 3. Tern. 3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as specified in Paragraph 1.3. 3.2Early Possession. If. Lessee totally or partially occupies the Premises prior to the Commencement Date, the obligation to pay Base ` Rent shall be abated for the period of such early possession. All other terms of thistease (including but not limited to the obligations to pay Lessee's Share " of the Operating Expense Increase) shall, however, be in effect during such period. Any such early possession shall not affect the Expiration Date. 3.3 Delay In. Possession. Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises to Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession by such date, Lessor shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease. Lessee shall not, however, be obligated to pay Rent or perform its other obligations until Lessor delivers possession of the Premises and any period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery ofpossession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay caused by the acts or omissions of Lessee. If possession isnot delivered" within 60 days after the Commencement Date, as the same may be extended under the terms of any Work Letter executed by Parties, Lessee may, at its option, by notice in writing within 10 days after the end of such 60 day period, cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder. If such written notice is not received by Lessor within said 10 ;day period, Lessee's right to cancel shall terminate. If possession of the Premises is not delivered within 120 days after the Commencement Date, this Lease shall terminate; unless other agreements are reached between Lessor and Lessee, in writing. 3.4 Lessee Compliance. Lessor shall not be required to deliver possession of the Premises to Lessee until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under this Lease from and after the Start Date, including the payment of Rent, notwithstanding.Lessor's election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee is required to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Lessor may elect to withhold possession until such conditions are satisfied. 4. Rent. 4.1. Rent Defined. All monetary obligations of.Lessee to Lessor under the terms of this Lease (except for the Security Deposit) are deemed to be rent ("Rent"). 4.2 Operating Expense Increase. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's Share of the amount by which all Operating Expenses for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being > hereinafter referred to as the "Operating Expense Increase', in accordance with the following provisions: (a) "Base Year" is as specified in Paragraph 1.9. (b) "Comparison Year" is defined as each calendar year during the term of this Lease subsequent to the Base Year; provided, however, Lessee shall have no obligation to pay a share of the Operating Expense Increase applicable to the first 12 months of the Lease Term (other than .such as are mandated by a.: governmental authority, as to which government mandated' expenses Lessee shall pay Lessee's Sharp, notwithstanding they occur during the first twelve (12) months). Lessee's Share of the Operating Expense Increase for the first and last Comparison Years of the Lease Term shall be prorated according to that portion of such Comparison Year as to which Lessee is responsible for a share of such increase. (c) "Operating Expenses" include all costs incurred by Lessor relating to the ownership and operation of the Project, calculated as If the Project was at least 95% occupied including, but not limited to, the following: (i) The operation, repair, and maintenance In neat, clean, safe, good order and condition, but not the replacement (see subparagraph (g)) of the following: (aa) The Common, Areas, including their surfaces, coverings, decorative items, carpets, drapes and window coverings, and including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways,' parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, building exteriors and roofs, fences.and gates; (bb) All heating, air conditioning, plumbing, electrical systems, life safety equipment, communication systems and other equipment used in common by, or for the benefit of, lessees or occupants of the Project, including; elevators and escalators, tenant directories, fire detection systems including sprinkler system maintenance and repair. (ii) ` Trash disposal, janitorial and security services,. pest control services, and the costs of any environmental inspections;. (iii) Any other service to be provided by Lessor that is elsewhere in this Lease stated to be "Operating: Expense"; (iv) The cost of the premiums for the insurance policies maintained by Lessor pursuant to paragraph 8 and any deductible portion of an insured loss concerning the Building or the Common Areas; (v) The amount of the Real Property Taxes payable by Lessor pursuant to paragraph 10; (vi) The cost of water, sewer, gas, electricity; and other publicly mandated services not separately metered; :(vii) Labor, salaries, and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or.cleaning the Project and accounting and management fees attributable to the operation of the Project; (viii) The cost of any Capital Expenditure to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such Capital Expenditure over a 12 year period and Lessee shall not be required to pay more than Lessee's Share of 11144th of the cost of such Capital Expenditure in any given month; (ix) Replacement of equipment or improvements that have a useful life for accounting purposes of 5 years or less. (d) Any item of Operating Expense; that is specifically attributable to the Premises, the Building or to any other building in the Projector to the operation, repair and maintenance thereof, shall be allocated entirely to such Premises, Building, or otherbuilding. However, any such item that is not specifically attributable to the Building or to any other building or to the operation repair and maintenance thereof, shall be equitably allocated by Lessor to'all buildings in the Project;. (e) The inclusion of the improvements, facilities and services set forth in Subparagraph 4.2(c) shall not be deemed to impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the Project already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of them. {f) 'Lessee's Share of Operating ExpenseIncreaseshall be payable by Lessee within 10 days after a reasonably detailed statement of actual expenses is presented to Lessee by Lessor. At Lessor's option; however, an amount may be estimated by Lessor from time to time in advance of Lessee's Share of the Operating Expense Increase for any Comparison Year, and the same shall be payable monthly during each Comparison Year of the Lease term, on the same day as the Base Rent isduehereunder. In the event that Lessee pays Lessor's estimate' of Lessee's Share of Operating; Expense Increase as aforesaid, Lessor shall deliver to Lessee within 60 daysafterthe expiration of each Comparison Year a reasonably detailed statement showing Lessee's Share of the actual Operating Expense Increase incurred during such year. If Lessee's payments under this paragraph (f) during said Comparison Year exceed Lessee's Share as indicated on said statement, Lessee shall be entitled to credit the amount of such overpayment against Lessee's Share of Operating Expense Increase next: falling due. If Lessee's payments under this paragraph during said Comparison Year were less than Lessees Share as indicated on said statement, Lessee shall pay to Lessor the amount of the deficiency within 10 days after delivery by Lessor to Lessee of said statement. Lessor and Lessee shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last Comparison Year for which Lessee is responsible as to Operating Expense Increases, notwithstanding that the Lease term may have terminated before the end of such Comparison Year. - (g) Operating Expenses shall not include the costs of replacement for equipment or capital' components such as the roof, foundations, exterior wails or a Common Area capital improvement, such as the parking Jot paving, elevators, fences that have a useful life for accounting purposes of 5 years or more unless it is of the type described to paragraph 4.2(c) (viii), in which case their cost shall be included as above provided. (h) Operating Expenses shall not include any expenses paid by any tenant directly to third parties, or as to which Lessor is otherwise reimbursedbyany third party, other tenant, or by insurance proceeds. 4.3 Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States on or before the day on which it is due, without offset or deduction (except as specifically permitted in this Lease). Rent for any period during the term hereof which is for less than one full calendar month shall be prorated based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address' stated herein or to such other persons or place as Lessor may from time to time designate in writing Acceptance of a payment which is less than the amount - '.'then dueshallnot be -a waiver of Lessor's rights to the balance of such Rent, regardless of Lessor's endorsement of any check so stating. Inthe event that any check, draft, or other instrument of payment given by Lessee to Lessor is dishonored for any reason; Lessee agrees to pay to Lessor the sum of $25 in addition to any Late Charge.. Payments will be applied first to accrued late charges and attorney's' fees, :second to accrued interest, then to Base Rent and Operating Expense Increase, and any remaining amount to any other outstanding charges or costs. 5 Security Deposit. Lessee shall deposit with Lessor upon execution hereof the Security Deposit as security for Lessees faithful performance of its " obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease; Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount due Lessor or to reimburse or compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of the Security' Deposit, Lessee shall within 10 days after written request ` therefor,' deposit monies with Lessor sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases during the term of Lease, Lessee shall, upon written request from Lessor, deposit additional Moneys with Lessor so. that the total amount of the Security Deposit shall at all limes bear the.samepropartionto the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Agreed Use be - amended to accommodate a material change in the business of Lessee or to accommodate a sublessee or assignee, Lessor shall have the right to increase Initials Initials Page 3 of 12 40 ' + the Security Deposit to the extent necessary, in Lessorsreasonable, judgment, to account for any increased wear and tear that the Premises may suffer as a result thereof.If a change in control of Lessee occurs during this Lease and following such change the financial condition of Lessee is, in Lessor s reasonable judgment, significantly reduced. Lessee shatl,deposit such additional monies with Lessor as shall be sufficient to cause the Security Deposit to be- at.a commercially reasonable level based on such change in financial condition. Lessor shall not be required to keep the Security Deposit separate from its general accounts. Within 14 days after the expiration or termination of this Lease, if Lessor elects to apply the Security Deposit only to unpaid Rent, and otherwise within 30 days after the Premises have been vacated pursuant to Paragraph 7.4(c) below, Lessor shall return that portion of the Security Deposit not used or applied by Lessor. No part of the Security Deposit shall be considered to be held in trust, to bear interest or to be prepayment for any monies to be paid by Lessee under this Lease. 6 Use. 6.1 Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which is reasonably comparable thereto, and for norther purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs occupants of or causes damage to neighboring premises or properties. Lessor shall not unreasonably withhold or delay its consent to any written request for a modification of the Agreed Use, so long as the same will not impair the structural integrity of the improvements of the Building, will not adversely affect the mechanical, electrical, HVAC, and other systems of the Building, and/or will not affect the exterior, appearance of the Building. If Lessor electsto withhold consent, Lessor shall within 7 days after -such request give written notification of same, which notice shall include an explanation of Lessor's objections to the change in the Agreed Use: 6.2 Hazardous Substances. (a) Reportable Uses Require Consent. The term "Hazardous Substance" as used 1n this Lease shall mean any product, substance, or waste whose presence, use, manufacture; disposal, transportation` or release, either by itself or in combination with other materials expected to be on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the environment or the Premises, (it) regulated or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or third party under any applicable statute or common law theory. Hazardous Substances shall include, but not, be limited to, hydrocarbons, petroleum, gasoline, andlor Crude oil or any products, byproducts or fractions thereof. Lessee shall not engage in any activity in or on Premises which constitutes a Reportable Use of Hazardous Substances without the - express prior written consent of Lessor and timely compliance (at Lessee's expense) with all Applicable Requirements. "Reportable Use" shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to be filed with, any governmental authority, and/or (iii) the presence at the Premises of a Hazardous Substance with respect to which any Applicable Requirements requires that a notice be given to persons entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing, Lessee may use any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use such as ordinary office supplies (copier toner, liquid paper, glue, etc.) and common household cleaning materials, so long as such use is in compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor to any liability therefor. In addition, Lessor may condition its consent to any Reportable Use upon receiving such additional assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises and/or the environment against damage, contamination, injury and/or liability, including but not limited to, the installation (and removal on or before tease expiration or termination) of protective modifications (such as concrete encasements) and/or increasing the Security Deposit. (b) Duty to Inform Lessor. If Lessee knows, or has reasonable cause to believe, that a Hazardous Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice of such fact to Lessor; and provide Lessor with a copy of any report, notice, claim or other documentation which it has concerning the presence of such Hazardous Substance. (c) Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled orreleased in, on, under, or about the Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessee's expense, comply with all Applicable Requirements and take all investigatory andlor remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous Substance brought onto the Premises' during the term of this Lease, by or for Lessee; or any third party. (d) Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground lessor, if any, harmless from and against any and all loss of rents andlor damages, liabilities,: judgments,claims, expenses, penalties, and attomeys' and consultants' fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Lessee, or any third party (provided; however, that Lessee Shall have no liability under this Lease With respect 7o underground migration of any Hazardous Substance under the Premises from areas outside of the Project not caused or contributed to by Lessee): Lessee's obligations shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment created or suffered by Lessee, and the cost of investigation, removal, remediation, restoration and/or abatement; and shall survive the expiration or termination of this Lease. No termination, cancellation or release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed by Lessor in writing at the time of such agreement. (e) Lessor Indemnification. Lessor and its successors and assigns shall indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages,, including the cost of remediation, which result from Hazardous Substances which existed on the Premises prior to Lessees occupancy or which are caused by the gross negligence :or willful misconduct of Lessor, its agents or employees: Lessor's obligations, as and when required by the Applicable Requirements, shall include, but not be limited to, the cost of investigation, removal, remediation, restoration andror abatement, and shall survive the expiration or termination of this Leaser (f) Investigations and Remediations. Lessor shall retain the responsibility and pay for any investigations or remediationmeasures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to Lessee's occupancy, unlesssuch remediation measure is required as a result of Lessee's use '(including "Alterations", as defined in- paragraph 7.3(a)below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lessor'sagents to have reasonable access to the Premises -at -reasonable times in order tocarry out Lessor's investigative and remedial - responsibilities. - - - - (g) Lessor Termination Option. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this Lease; unless Lessee is legally responsible therefor (in which case Lessee shall: make the investigation and remedlation thereof required by the Applicable Requirements and this Lease shall continue in full force and effect, but subject to Lessor's rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessors option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii) if theestimatedcost to remediate such conditionexceeds,l2 times the then monthly Base ` Rent or $100,000, whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor's desire to terminate this Lease as of the date 60 days following the date of such notice. In the event Lessor elects to give a termination notice, Lessee may, within 10 days thereafter, give written notice to Lessor of Lessee's commitment to pay the amount by which the cost of the remediation.of such Hazardous Substance Condition exceeds an amount equal to 12 times the then monthly Base Rent or $100,000, whichever is greater. s, Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 3D days following such commitment: In such event, this Lease shall continue in full force and effect, and Lessor shall proceed to make such remediation as soon as reasonably possible after the required funds are available.- If Lessee does not give such notice and provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified in Lessor's notice of termination.. - - 6.3 Lessee's Compliance with Applicable Requirements. Except as otherwise provided ihthis Lease, Lessee shall, at Lessee's sole expense, fully, diligently and in a timely manner, materially comply with all Applicable' Requirements, the ,requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Lessor's engineers and/or consultants which relate in any manner to the Premises, without regard to whether said requirements are now in effector become effective after the Start Date. Lessee shall, within 10 days after receipt of Lessor's written request, provide Lessor with copies of all permits and other documents, and other information evidencing Lessee's compliance with any Applicable Requirements specified by Lessor, and shall' immediately upon receipt, notify Lessor in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable Requirements. 6.4 inspection; Compliance. Lessor and Lessor's "Lender' (as defined in Paragraph 30) and consultants' shall have the right to enterinto Premises at any time, in the case of an emergency, and otherwise at reasonable times, for the purpose of inspecting the condition of the Premises and for verifying compliance by Lessee with this Lease. The Cost of any such inspections shall be paid by Lessor, unless a violation of Applicable Requirements; or a Hazardous Substance Condition (see paragraph 9.1 e) is found to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for the cost of such inspection,` so long as such inspection is reasonably related to the violation or contamination. 7. Maintenance; Repairs; Utility Installations; Trade Fixtures and Aherations. 7.1 Lessee's Obligations. Notwithstanding Lessor's obligation to keep the Premises in goad condition and repair, Lessee shall be responsible for payment of the cost thereof to Lessor as additional rent for that portion of the cost of any maintenance' and repair of the Premises, or any equipment (wherever located) that serves' only Lessee or the Premises, to the extent such cost is attributable to causes beyond normal wear and tear. Lessee shall be responsible for the cost of painting, repairing or replacing wall coverings, and to repair or replace any improvements with the Premises. Lessor may, at its option, upon reasonable notice, elect to have Lessee perform any particular such maintenance or repairs the cost of which is otherwise Lessee's responsibility hereunder, 7.2 Lessors Obligations Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 4.2 (Operating Expenses), 6 (Use) 7,1 (Lessee's Obligations), 9 (Damage or Destruction) and 14 (Condemnation); Lessor, subject to reimbursement pursuant to Paragraph 42, shall keep in good' order, condition and repair the foundations, exterior walls structural condition of interior bearing walls, exterior roof, fire sprinkler system, fire alarm' and/or Initials Initials Page 4 of 12 ' ' moon - Amo -roman IrH,, trW P-1 F=tat= Assoc;aIi— RFVI:SFn FORM OFr' 1 g1gQr smoke detection systems, fire hydrants, and the Common Areas. Lessee expressly waives the benefit of any statute now or hereafter in effect to the extent it is inconsistent with the terms of this Lease. 7.3 Utility Installations; Trade Fixtures; Alterations. (a) Definition. The term 'Utility installations" refers to all floor and window coverings, air lines, vacuum lines, power panels, electrical distribution, security and fire protection systems, communication cabling. lighting fixtures, HVAC equipment, and plumbing in or on the Premises. The term 'Trade Fixtures" shall mean Lessee's machinery and equipmentfhat can be removed without doing material damage to the Premises. The term " Alterations shall mean any modification of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion. "Lessee Owned Alterations and/or Utility Installations" are defined as Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a). (b) Consent.; Lessee shall not make any Alterations or Utility installations to the Premises without Lessor's prior written consent. Lessee may, however, make non-structural Utility Installations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing, relocating or removing the roof, ceilings, floors or any existing walls, will not affect the electrical, plumbing, HVAC, and/or fife safety systems, and the cumulative cost thereof during this Lease as extended does not exceed $2000. Notwithstanding the foregoing, Lessee shall not make or permit any roof penetrations and/or install anything on the roof without the-pnor written approval of Lessor. Lessor may, as a precondition to granting such approval, require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations or tions that Lessee shall desire to make a Utility Installs which require the consent of the Lessor shall be presented to Lessor in written form with detailed pians. Consent shall be deemed conditioned upon Lessee's: (i) acquiring all applicable governmental permits, (ii) furnishing Lessor with copies of both the permits and, the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in.a prompt, and expeditious manner. Any Alterations or Utility Installations shall, be performed in a workmanlike manner with good and sufficient materials. tessee shall promptly upon completion furnish Lessor with asbuilt plans and specifications. For work which costs an amount in excess of one month's Base Rent, Lessor may condition its consent upon Lessee providing a lien, and .completion bond In an amount equal to 150% of the estimated cost of such Alteration or Utility Installation and/or upon Lessee's posting an additional Security Deposit with Lessor. (c) Liens; Bonds. Lessee shall pay, when due, all claims for labor or materials furnished or alleged.to have been furnished to or for Lessee at or for use on the Premises which claims are or may secured by any mechanic's or materialmen's lien against the Premises or any interest therein. Lessee shall give Lessor not less than-1 D days notice prior to the commencement of any work in, on.or about the Premises, and Lessor shall have the right to post notices of non-responsibility. If Lessee shall contest the validity of any such lien, claim or demand, then.Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereonr before the enforcement thereof. If Lessor shall require, Lessee shall furnish a surety bond in an amount equal to 150% of the amount of such contested Gen, claim or demand, indemnifying Lessor against liability for the same. If Lessor elects to participate in any such action, Lessee shall pay Lessor's attorneys' fees and costs. 7.4 Ownership; Removal; Surrender; and Restoration. (a) Ownership. Subject to Lessor's right to require removal or elect ownership as hereinafter provided, all Alterations and Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time, elect in writing to be the owner of all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the Premises. (b)'Removal. NI proposed Ls5seee Owned Alterations and Utility Installations proposed by Lessee will be subject to review and approval by. Lessor prior to construction. At the time of such approval, Lessor shall designate which, if any of such installations must be removed by Lessee at the expiration of the term of this Lease Ry dalivei to 696688 ef written nelise #em 6es69F net eediff than on Anei Rat lateF thEIR 30 days p0oF t tefFninntien ef this Lease. Lessor may require the removal at any of all or any part of any Lessee Owned Alterations or Utility Installations made without the required.consent (c) Surrender; Restoration. Lessee shall surrender the Premises by the Expiration Date or any earlier termination date, with all of then improvements, parts and surfaces thereof clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. "Ordinary wear and tear" shall not include any damage or deterioration that would. have been prevented by good maintenance practice.' Notwithstanding the foregoing, if this Lease is for 12 months or less, then Lessee shall surrender the Premises in the same condition as delivered to Lessee on the Start Date with NO allowance for ordinary wear and tear. Lessee shall repair any damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee owned Alterations andfor Utility Installations, furnishings, and equipment as well as the removal of any storage tank installed by or for Lessee. Lessee shall also completely remove from the Premises any and all Hazardous Substances brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances which were deposited via underground migration from areas-outside of the Project) even if such removal would require Lessee to perform or pay for work that exceeds statutory requirements. Trade Fixtures shall remain the property of Lessee and shall be removed by Lessee. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without the express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 26 below. 8. Insurance; Indemnity. 8.1 Insurance Premiums. The cost of the premiums for the insurance policies maintained by Lessor pursuant to paragraph 8 are included as Operating Expenses (see paragraph 4.2 (c)(iv)). Said costs shall include increases in the premiums resulting from additional 'coverage' related to requirements of the holder of a mortgage or deed of trust covering the Premises, Building "and/or Project, increased valuation of the Premises, Building and/or Project, and/or a general premium rate increase. Said costs shall not however, include any premium increases resulting from the nature of the occupancy of any other tenant of the Building If the Project was not insured for the entirety of the Base Year, then the base premium shall be the lowest annual premium reasonably obtainable for the required insurance as of the Start Date, assuming the most nominal use possible of the Building and/or Project. In no event, however, shall Lessee be responsible for any portion of the premium cost attributable to liability insurance coverage in excess of $2,000,000 procured under Paragraph 8.2(b). 8.2 Liability Insurance. (a) Carried by Lessee. Lessee shall obtain and keep in force during the term of ,his Lease insurance coverage protecting Lessee and Lessor as an additional insured against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance coverage may be provided through a program of self insurance. 5uch insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $1,000,000 per occurrence with an annual aggregate of not less than $2,000,000. i` available through such self insurance program, the ln5urance coverage reopired herein will include an "Additional insured-Managers or Lessors of Premises Endorsement" and contain the "Amendment of the Pollution Exclusion Endorsement" for damage caused by heat smoke or fumes from a'hostile fire. The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an "insured contract" for the performance of Lessee's indemnity` obligations under this Lease. The limits of said insurance shall not, however; limit the liability of Lessee nor relieve Lessee of any obligation hereunder.' All insurance carried by Lessee shall be primary to and not contributory with any similar' insurance carried by Lessor, whose insurance shall be considered excess' insurance only. Except for the coverage amounts described above, the additional nl5urance coverage Insurance as de5crilwl herein , shall not ve required of Lessee unless available throughleseee's self msurarceprogram. (b) Carried by Lessor. - Lessor shall maintain liability insurance as described in Paragraph 8.2(a), in addition to, and not in lieu of, the insurance required to be maintained by Lessee. Lessee shall not be, named as an additional insured therein. 8.3 Property Insurance - Building, Improvements. and Rental Value. (a)' Building and Improvements. Lessor shall obtain and keep in force a policy or policies of insurance in the name of Lessor, with loss payable to Lessor, anyground-lessor, and to any Lender insuring loss or damage to the Building and/orProject. The amount of such Insurance shatl be equal to the full replacement cost of the Building and/or Project, as the same shall exist from time to time, or the amount required by any Lender, but in no event more than the commercially reasonable and available insurable value thereof. Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee's personal :property shall be insured by Lessee under Paragraph :8.4..If the coverage is available and commercially appropriate, such policy or policies shall insure against all: risks of direct physical toss or damage (except the perils of flood and/or earthquake unless. required by a Lender), including coverage for debris removal and the enforcement of any Applicable' Requirements requiring the upgrading, demolition, reconstruction or replacement of any portion of the Premises as the result of a covered loss.' Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing arincrease in the annual property insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located. If such insurance' coveragehas a deductible clause, the deductible amount shall not,exceed $1,000 per occurrence. (b) Rental Value. InSESOF 611211 BIBS �B a p91 Gy aF peliedes "A the Rame Of 68669F W0111,1856 payable to 686619F and aFl�'LeAdff, RSWORg the 1066 of the 41 ReFill f9F eRe YeaF Wiih OR FARity f9F GA, 80 days r -nt-I Value Insurance"), Said - .'.. . INTENTiONALLYI7ELETED. (c) Adjacent Premises.' Lessee shall pay for any increase in the premiums for the property insurance of the Building and for the Common Areas or other buildings in the Project if said increase is caused by Lessee's acts, omissions; use or occupancy of.tne Premises. Initials Initials- Page 5 of 12 r. rjWf l P:-1 ccf=fe Acc Hr inn RFVISFri - .FORM OFG-1 9199E r• (d) Lessee's improvements. Since Lessor is the Insuring Parry, Lessor shall not be required to insure Lessee Owned Alterations and Utility Installations unless the item in question has become the property of lessor under the terms of this Lease. 8.4 Lessee's Property; Business Interruption Insurance. (a) Property Damage. Lessee snail obtain and iriaintain insurance coverage on of Lessee's personal properly, Trade Fixtures, and - Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacerient cost coverage with a deductible of not to exceed $1,000 per all be used by Lessee for the replacement of personal property, Trade Fixtures and Lessee Owned occurrence. The proceeds from any such insurance sh Alterations and Utility Installations. Lessee shall provide Lessor with written evidence that such insurance is in force. (b) Business Interruption. Lessee shall obtain and maintain loss of income and extra expense insurance in amounts as will reimburse Lessee for direct or indirect loss of earnings attributable'to all perils commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of access to the Premises as a result of such perils. (c), No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of insurance specified herein are adequate to cover Lessee's property, business operations or obligations under this Lease 8,5 Insurance Policies. Insurance required herein shall be by companies duly licensed or admitted to transact business in the state where the Premises are located, and maintaining during the policy term a "General Policyholders Rating" of at least B+, V, as set forth in most current issue of "Best's Insurance Guide", or such other rating as may be required by a Lender. Lessee shall not do or permit to be done anything which invalidates the required insurance policies: Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies of such insurance or certificates evidencing the existence and amounts of the required insurance. No such, policy shall be cancelable or subject to modification except after 30days prior written notice to Lessor. Lessee shall, at least 30 days prior to the expiration: of such policies, furnish Lessor with evidence of renewals of "insurance binders" evidencing renewal thereof, or Lessor may order such insurance and charge the cost thereof to,Lesses, which amount shall be payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease, whichever is less. If either Party shall fail to procureandmaintain the insurance required to be carded by it the other Party may, but shall not be required to, procure and maintain the same. 8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor each hereby release and relieve the other, ,.and waive their entire right to recover damages against the other, for loss of or damage to its property arising out of or incident to the perils required to be - insured against herein. The effect of such releases and waivers is not limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to subrogation that such companies may have against Lessor or Lessee, as the case maybe, so long as the insurance is not invalidated thereby: 8.7 Indemnity. Except for Lessor's gross negligence or willful misconduct. Lessee shall indemnify, protect, defend and hold harmless.the Premises, Lessor and its agents; Lessor's master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents andlor damages, Diens, "judgments, penalties, attorneys' and consultants' fees, expenses and/or liabilities ansing out of, Involving, or in ,connection with, the use and/or occupancy of the Premises by Lessee. If any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the some at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with lessee in such defense. Lessor need not have first paid any such claim in order to be defended or indemnified. 8.8 Exemption of Lessor from Liability. Lessor shall not be liable for injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee's employees, contractors, invitees; customers, or any other person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures; or from any other cause, whether the said injury or damage results from conditions arising upon the Premises or upon other portions of the Building, or from other sources or places Lessor shall not be liable for any damages arising from any actor neglect of - any other tenant of Lessor nor from the failure of Lessor to enforce the provisions of any other lease in the Project. Notwithstanding Lessor's negligence or breach of this Lease, Lessor shall under no circumstances be liable for injury to Lessee's business or for any loss of income or profit therefrom.. 9. Damage or Destruction. 9.1 Definitions. (a) "Premises Partial 'Damage" shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 3 months or less from the date of the damage or destruction, and the cost thereof does not exceed a sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within 30 days from the date ofthedamage or destruction as to whether or not the damage is Partial or Total. (b) "Premises Total Destruction" shall mean damage or destruction' to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired In 3 months or less from the date of the damage or destruction and/or the cost thereof exceeds a sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total. (c) "Insured Loss" shall mean damage or destruction to improvements on the Premises. other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved. (d) "Replacement Cost" shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required bythe -operation of Applicable Requirements, and W',houtdeduction for depreciation. (e) "Hazardous Substance Condition" shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by; a Hazardous Substance as defined in Paragraph 6.2(a), in on, or under the Premises which requires repair, remediation, or restoration. 9.2 Partial Damage - Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall; at Lessor's expense, repair such damage (but not/ Lessee's Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall, continue in full force and effect; provided, however, that Lessee shall, at Lessor's election, make the repair of any damage or destruction the total cost to. repair of which is $5,000 or less, and, In such event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for that purpose. `. Notwithstanding. the foregoing; if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall promptly contribute the shortage in proceeds as and when required to complete said repairs. In the event, however, such shortage was .due to the fact that, by reason of the unique nature of: the improvements, full replacement cost insurance coverage was . not commercially reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within 10 days following receipt of written notice of such shortage and request therefor:: If Lessor receives said funds or adequate assurance thereof within said 10 day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds or assurance are not received, Lessor may - 'j p H y thereafter, Lessor y case this Lease shall remain m. full force and effect, or (ii) have this Lease terminate 30 days thereaft�h Less nevertheless elect b written notice to Lessee within 10 days thereafter to: (1) make such restoration and repair as Is commercial reasonable shall not be entitled to reimbursement of an Lessee paying any shortage m proceeds, m which y funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage to or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party. 9.3 Partial Damage - Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a' negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee's expense), Lessor may either: (I) repair such damage as soon as reasonably passible at Lessor's expense, in which event this Lease shall continue in full force and effect, or (t) if the amount of the Uninsured Lose exceeds $200,000.00; Lessor may terminate thisLeaseby giving written notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective 50 days following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of the termination notice to give written notice to Lessor of Lessee's commitment to pay for. the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days after making such commitment. In such event this Lease shall continue in full force and effect; and Lessor shall proceed to make such repairs as soon as reasonably possible after the required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in the termination notice. - 9.4 Total Destruction. Notwithstanding any other provision hereof, if Premises Total Destruction occurs, this `Lease shall terminate 60 days following such Destruction:; If the damage or destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessor's' damages from Lessee, except as provided In Paragraph 8.5. 9.5 Damage Near End of Term. If at any time during the last 6 months of this Lease there is damage for which the cost to repair exceeds one month's Base Rent, whether or not an Insured Loss, Lessor may terminate this Lease effective 60 days following the date of occurrence of such damage by giving a written termination notice to Lessee within 30 days after the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this Lease or to purchase the Premises, then Lessee may preserve this Lease by, (a) exercising such option and (b) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the earlier of (i) the date which is 10 days after Lessee's receipt of Lessors wntten notice purporting to terminate this Lease, or (it) the day prior to the date upon which such option expires. if Lessee duly exercises such option during such period and provides Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor's commercially reasonable expense, repair such damage as soon as reasonably possible and this Lease shall continue in full force and effectif Lessee fails to exercise such option and provide such funds or assurance during such period, -then this Lease shall terminate on the date specified in the termination notice Lessee'soption shall be extinguished: _ Initials Initials Page 6 of 12 9.6 Abatement of Rent; Lessee's Remedies. (a) Abatement. In the event of Premises Partial Damage or Premises Total Destruction or a Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to the degree to which Lessee's use of the Premises is impaired, but not to exceed the proceeds received from, the Rental Value ... - insurance. All other obligations of_Lesseehereunder shall be peifibned by Lessee, and Lessor shall have no liability for any such damage, destruction,' remediation, repair or restoration except as provided hereto. (b) Remedies. If Lessor shall be obligated to repair or restore the Premises and does not commence. in a substantial and meaningful way, such repair or restoration within 90 days after such obligation shall accrue, Lessee may, at any time prior to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice, of Lessee's election to terminate this Lease on a date not less than 60 days following the giving of such notice. If Lessee gives such notice and such repair or restoration is not commenced within 30 days thereafter, this Lease shall terminate as of the date specified in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in full :force and effect. "Commence" shall mean either the unconditional authorization of the preparafion of the required plans; or the beginning of'the actual work on the Premises, whichever first occurs. - 9.7 Termination; Advance Payments. Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shalt be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee's Security Deposit as has not been, or is not then required to be, used by Lessor. 9.8- Waive Statutes. Lessor and Lessee agree that the terms of this Lease shall govern the effect of any tlamage to or destruction of the Premises with respect to the termination of this Lease and hereby waive the provisions of any present or future statute to the extent inconsistent herewith. 10. Real Property Taxes. 10.1 Definitions- As used herein, the tern "Real Property Taxes" shalt include any form of assessment, real estate, general, special, ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estate taxes); improvement bond; and/or license fee imposed upon or levied against any legal or equitable interest of Lessor in the Project, Lessor's right to other income therefrom, and/or Lessors business of leasing, by any authority having the direct or indirect power to tax and where,the funds are generated with reference to the Project address and where the proceeds so generated are to be applied by the city, county or other local taxing authority of a jurisdiction within which the Project is located. "Real Property Taxes" shall also include any tax, fee, levy, assessment:or charge, or any increase therein, imposed by reason of events occurring during the term of this tease, including but not limited to, a change in the ownership of the Project or any portion thereof or change in the improvements thereon. , 10.2 Payment of Taxes. Except as otherwise provided in Paragraph 10.3; Lessor shall pay the Real Property Taxes applicable to the Project, and said payments shall be included in the calculation of Operating Expenses in accordance with the provisions of Paragraph 4.2. 10.3 Additional Improvements. Operating Expenses shall not include Real Property Taxes specified in the tax assessor's records and work sheets as being caused by additional improvements placed upon the Project by other lessees or by Lessor for the. exclusive enjoyment of such other lessees. Notwithstanding Paragraph 10.2 hereof, Lessee shall, however, pay to Lessor at the time Operating Expenses are payableunderParagraph .4.2, the entirety of any increase in Real Property Taxes if assessed solely by reason of Alterations, Trade Fixtures or Utility Installations placed upon the Premises by Lessee or at Lessee's request. - .. 10.4 .Joint Assessment If the Building is not separately assessed, Real Property Taxes allocated to the Building shall be an equitable proportion of the Real Property Taxes for all of the land and improvements included within the tax parcel assessed, such proportion to be determined by Lessor from the respective valuations assigned in the assessor's work sheets or such other information as may reasonably available. Lessor's reasonable determination thereof, in good faith, shall be conclusive_ 10.5 Personal Property Taxes. Lessee shall pay prior to delinquency all taxes assessed against and levied upon Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee contained in the Premises. When possible, Lessee shall cause its Lessee Owned Alterations and Utility Installations. Trade Fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Lessor. If any of Lessee's said property shall be assessed with Lessees real property, Lessee shall' pay Lessor the taxes attributable to Lessee's property within 10 days after receipt of awritten statement setting forth the taxes applicable to Lessee's property. 11. Utilities and Services. 11.1 Services Provided by Lessor. Lessor shall provide heating, ventilation, air conditioning, reasonable amounts of electricity for normal lighting and office machines, water for reasonable and normaldrinkingand lavatory use in connection with an office, and replacement light bulbs and/or fluorescent tubes and ballasts for standard overhead fixtures. Lessor shall also provide janitorial services to the Premises and Common Areas 5 times per week, excluding Building Holidays, or pursuant to the attached janitorial schedule; if any. Lessor shall not, however, be required to provide janitorial services to kitchens or storage areas included within the Premises. 11.2 Services Exclusive to Lessee. Lessee shall pay for all water, gas, heat, tight, power, telephone and other utilities and services specially or exclusively supplied and/or metered exclusively to the Premises or to Lessee, together with any taxes thereon. If a service is deleted by Paragraph 1.13 and such service isnot separately metered to the Premises. Lessee shall pay at Lessor's option, either Lessee's Share or a reasonable proportion to be determined by Lessor of all charges for such jointly metered service. 11.3 Hours of Service. Said services and utilities shall be provided during times set forth in Paragraph 1.12. Utilities and services required at other times shall be subject to advance request and reimbursement by Lessee to Lessor of the cost thereof. 11.4 Excess Usage by Lessee. Lessee shall not make connection to the utilities except by or through existing outlets and shall not install or use machinery or equipment in or about the Premises that uses excess water, lighting or power, or suffer or permit any act that causes extra burden upon the utilities or services, including but not limited to security and trash services, over standard office usage for the Project. Lessor shall require Lessee to reimburseLessor for any excess expenses or costs that may ariseoutof a breach of this subparagraph by Lessee. Lessor may, in its sole discretion, install at Lessee's expense supplemental equipment and/or separate metering applicable to Lessee's excess usage or loading. 11.5 Interruptions. There shall be no abatement of rent and Lessor shall not be liable in any respect whatsoever for the inadequacy, stoppage, interruption or discontinuance of any utility or service due to riot, strike, labor dispute, breakdown, accident, repair or other cause beyond Lessor's reasonable control or in cooperation with governmental request or directions. 12 Assignment and Subletting. 12.1 Lessor's Consent Required. (a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, "assign or assignment") or sublet all or any part of Lessee's interest in this Lease on in the Premises without Lessor's prior written consent. (b) Unless Lessee is a seFpeFafien and its Steel< R-6914 Sleek 0IN-h-Fifle, a shange if; 4ho saMpal al Lessee she! INTENTIONALLYDELETED. (c) The involvement of Lessee or its assets in any transaction or series of transactions (byway of merger, sale, acquisition, financing, transfer, leveraged buyout or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee's assets occurs, which results or will result in a reduction of the Net Worth of Lessee by an amount greater than 25% of such Net Worth as it was represented at the time of the execution of this Lease or at the-timeof the most recent assignment to which Lessor has consented, orasit exists immediately prior to said transaction or transactions constituting such reduction, whichever was or is greater, shall be considered an assignment of this Lease to which Lessor may withhold its consent. "Net Worth of Lessee" shall mean the net worth of Lessee (excluding any guarantors) established under generally accepted accounting principles. (d) An assignment or subletting without consent shall, at Lessor's option, be a Default curable after notice per Paragraph 13.1(c), ora noncurable Breach without the necessity of any notice and grace period, If Lessor elects to treat such. unapproved assignment or subletting as a nondurable Breach, Lessor may either: (i) terminate this Lease, or (n) upon 30' days written notice, increase the monthly Base Rent to 110% of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the Premises held by Lessee shall be subject to similar adjustment to 110% of the price previously in effect. and (ii) all fixed and non -fixed rental adjustments scheduled during the remainder of the Lease term shall be increased to 110% of the scheduled adjusted rent. (e) Lessee's remedy for any breach of Paragraph 12.1 by Lessor shall be limited to compensatory damages and/or injunctive relief. 12.2 Terms and Conditions Applicable to Assignment and Subletting (a) Regardless of Lessors consent', no assignment or subletting shall: (I) be effective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary liability of Lessee for the payment of Rent or for the performance of -any other obligations to be performed by Lessee. (b) Lessor may accept Rent or performance of Lessee's obligations from any person other than Lessee pending approval or disapproval of an assignment. Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance shall constitute a'waiver or estoppel of Lessor's right to exercise its remedies for Lessee's Default or Breach. (c) Lessor's consent to any assignment or subletting shall not constitute a consent to any subsequent assignment or subletting. -.(d) in the event of any Default or :Breach by Lessee,. Lessor may proceed. directly against Lessee, .any Guarantors oranyone else - iresponsible for the performance of Lessee's obligations under this Lease, including any assignee or sublessee,. without first exhausting Lessor's remedies against any other person or entity responsible therefore to Lessor, or any security held by Lessor. (e) Each request for consent to an assignment or subletting shall be in writing, accompanied by information relevant to Lessor's determination as to the financial and operational responsibility and, appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required. modification of the Premises, if any. Lessee agrees to provide Lessor with such .other or additional information and/or - documentation as may be reasonably requested. (See also Paragraph '.36)Initials Initials Page 7 of 12 -„. �_���:. ��.� .....may-..<-J.-.�_-..�,._ ,._.�-�• - • _ ,... -.. -, ' (f) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment or entering into such sublease; be deemed to have assumed and agreed to conform and comply with each and every term, covenant; condition and obligation herein to be observed or performed by Lessee during the tern of said assignment or sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented to in writing: (g) Lessor's consent to any assignment or subletting shall not transfer to the assignee or sublessee any Option granted to the original Lessee by this Lease unless such transfer is specifically consented to by Lessor in writing: (See Paragraph 39.2) 12.3 Additional Terms and Conditions, Applicable to Subletting. The following terms and conditions shall apply to any subletting by Lessee of 611 or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein: (a) Lessee hereby assigns and transfers to Lessor all of Lessee's interest in all Rent payable on any sublease, and Lessor may collect such Rent and apply same toward Lessee's obligations under this Lease; provided, however, that until a Breach shall occur in the performance of Lessee's obligations; Lessee may collect said Rent. Lessor shall not, by reason of the foregoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perforin and comply with any of Lessee's obligations to such sublessee. 'Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee`s obligations under this Lease, to pay to Lessor all Rent due and to become due under the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to whether such Breach exists, notwithstanding any claim from Lessee to the contrary. (b) In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided, however; Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor. (c) Any matter requiring the consent of the sublessor under a sublease shall also require the consent of Lessor. (d) No sublessee shall further assign or sublet all or any part of the Premises without Lessor's prior written consent (e) Lessor shall deliver a copy of any notice of: Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default of Lessee within the grace period: if any, specified in such notice. The sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cured by sublessee_ Default; Breach; Remedies. ” 13.1 Default; Breach. A "Default" is defined as a failure by the Lessee to comply with or perform any of the terms, covenants; conditions or Rules and Regulations under this Lease. A "Breach" is defined as the occurrence of one or more of the followingDefaults, and the failure of Lessee to cure such Default within any applicable grace period. (a) The abandonment of the Premises; or the vacating of the Premises without providing a commercially reasonable level of security, or where the coverage of the property insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without providing reasonable assurances to minimize potential vandalism. - (b) The failure of Lessee to make any payment of Rent or any Security Deposit required to be made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any obligation under this Lease which endangers or threatens life or property, where such failure continues for a period of 310 business days following written notice to Lessee. (c) The failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certificate, (v) a requested subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 41 (easements), or (viii) any other documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of 10 days following written notice to Lessee (d) A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under,Paragraph 2.9 he other than those described in subparagraphs 13.1(a), (b) or (c), above, where such Default continues for a period of 30 days after written notice: provided; however, that if the nature of Lessee's Default is such that more than 30 days are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion. (e) The occurrence of any of the following events; (1) the making of any general arrangement or assignment for the benefit of.creditors; (ii) becoming a "debtor" as defined in 11 U.S.C. § 101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within 60 days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease, where possession isnot restored to Lessee within 30 days; or (iv) the attachment, execution or other judicial seizure of substantially all of Lessees assets located at the Premises or of Lessee's interest in this Lease; where such seizure is not discharged within 30 days; provided, however, in the event that any provision of this subparagraph (e) is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions (f)The discovery that any financial statement of Lessee or of any Guarantor given to Lessor was materially false. fg) If the performance of Lessee's obligations under this Lease is guaranteed: (r) the death of a' Guarantor, (ii) the termination of a Guarantor's liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a Guarantor's becoming insolvent or the subject of a bankruptcy filing, (iv) a -Guarantor's refusal to honor the:: guaranty,. or (v) a. Guarantor's breach of its guaranty obligation on an anticipatory basis, and - Lessee's failure; within 60 days following written notice of any such event, to provide written alternative assurance or security, which; when coupled with the then existing resources of lessee, equals or exceeds the combined financial resources of Lessee and the Guarantors that existed at the time of execution of this Lease. 33.2 . Remedies. if Lessee fails to perform any of its affirmative duties or. obligations, within 10 days after written notice (or in case of an emergency, without notice), Lessor may, at its option, perform such duty or on Lessee's behalf, Including, but not limited to the obtaining of r reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. The costs and expenses of any such performance by Lessor shall be due and payable by Lessee upon receipt of invoice therefor. If any check given to Lessor by Lessee shall not be honored by the bank upon which it is drawn, -Lessor, at option, may require all future payments to be made by Lessee to be by cashier's check. In the event of a Breach, Lessor may, with or without further notice or demand and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach: (a) Terminate Lessee's right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately' surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which had been earned at the time of termination; (ii) the worth at the time'of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including but not limited to the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorneys' fees, and that portion of any leasing commission paid by Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to in provision(iii) of the immediately preceding sentence shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one percent. Efforts by Lessor to mitigate' damages caused by Lessee's' Breach of this Lease shall not waive. Lessor's right to recover damages under' Paragraph.: 12. Ifterminationof this Lease 'isobtained through the provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding any unpaid Rent and damages as are recoverable therein; or Lessor may reserve the right, to recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph 13,1 was not previously given, a notice to pay rent or quit, or to perform or quit given to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In such case, the applicable grace:penod required by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and the failure of Lessee to cure the Default within the greater of the two, such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor to the remedies provided for in this Lease andfor by said statute: (b) Continue the Lease: and Lessee's right to possession and recover the Rent as It becomes due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Ads of maintenance, efforts to relet, and/or the appointment of a receiver to protect the Lessor's interests, shall not constitute a termination of the Lessee's night to'possession. (c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises are located. The expiration or termination of this Lease and/or the' termination of Lessee's right to possession shall not relieve Lessee from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by reason of Lessee's occupancy of the Premises. 13.3 Inducement. Recapture. Any agreement for free or abated rent or other charges, or for the giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration for Lessee's entering into this Lease, all of which concessions are hereinafter referred to as "Inducement Provisions", shall be deemed conditioned upon Lessee's full and faithful performance of all of the terms; covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any such Inducement Provision shall automatically be deemed deleted from this Lease and of no further force or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated, given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by Lessee to Lessor, notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation of this:paragraph shall not be deemed a waiver by Lessor of the provisions of this paragraph unless specifically so stated in writing by Lessor at the time of such acceptance. - - - 13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, Initials Initials Page 8 of 12 i and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall.. not be received by Lessor within.J3 iD days after such amount shall- be due, ,then, without any requirement for notice to Lessee, Lessee shall pay to Lessor a one-time late charge equal to 10% of each such overdue amount or $100, whichever is greater. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of such late payment. Acceptance of such late charge by Lessor shall in no event constitute a.waiver of Lessee's Default or Breach with respect to such overdue amount, nor prevent the exercise of any of tFie other rights land remedies granted hereunder. ,In the event that a late charge is payable hereunder, whether or not collected, for 3 consecutive installments of Base Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessor's option, become due and payable quarterly in advance. 135 Interest. ,Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor, when due as to scheduled payments (such as Base Rent) or within 30 days following the date on which it was due for nonscheduled payment, shall bear interest from the date when due, as to scheduled payments, or the 31st day after it was due as to nonscheduled payments. The interest ("Interest") charged shall be computed at the rate of fro% per annum but shall not exceed the maximum rate allowed by law; Interest is payable in addition to the potential late charge provided for in Paragraph 13.4. 13.6 Breach by Lessor. (a) Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than 30 days after receipt by Lessor, and any Lender whose name and address shall have been furnished Lessee in writing for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessor's obligation is such that more than 30 days are reasonably required for its performance, then Lessor shall not be in breach if performance is commenced within such 30 day period and thereafter diligently pursued to completion: (b) Performance by Lessee on Behalf of Lessor. in the event that neither Lessor nor Lender cures said breach within 30 days after receipt of said notice, or if having commenced said cure they do not diligently pursue it to completion, then Lessee may elect to cure said breach at Lessee's expense and offset from Rent the actual and reasonable cost to perform such cure, provided however, that such offset shall not exceed an amount equal to the greater of one month's Base Rent or the Security Deposit,. reserving Lessee's right to seek reimbursement from Lessor. Lessee shall document the cost of said cure and supply said documentation to Lessor. 14, _Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of said power (collectively "Condemnation"), this Lease shall terminate as to the part taken as of the date the condemning authority takes fitle or possession, whichever first occurs. If more than 10% of the rentable floor area of the Premises, or more than 25✓ of Lessee's Reserved Parking Spaces, if any, are rtaken by Condemnation, Lesseemay, at Lessee's option,: to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of such taking (or in the absence of such notice, within 10 days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Condemnation awards andior payments shall be the property of Lessor, whether such awards shall be made as compensation for diminution in value of the leasehold, the value of the part taken; or for severance damages; provided, however, that Lessee shall be entitled to any compensation for Lessee's relocation expenses, loss of business goodwill and/or Trade Fixtures, without regard to whether or not this Lease is terminatedpursuant to the provisions of this Paragraph. All Alterations and Utility Installations made to the Premises by Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled to any and all compensation which is payable therefor. In the event that this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to the Premises caused by such Condemnation. 15. Brokerage Fees, 15.1 Additional Commission. In addition to the payments owed pursuant to Paragraph 1.10 above, and unless Lessor and the Brokers otherwise agree in writing, Lessor agrees that: (a) if Lessee exercises any Option, (b) if Lessee acquires from Lessor any rights to the Premises or other premises owned by Lessor and located within the Project, (c) if Lessee remains in possession of the Premises, with the consent of Lessor, after the expiration of this Lease, or (d) if Base Rent is increased; whether by agreement or operation of an escalation clause herein, then, Lessor shall pay Brokers a fee in accordance with the schedule of the Brokers in effect at the time of the execution of this Lease. 15.2 Assumption of Obligations. Any buyer or transferee of Lassoes interest in this. Lease shall be deemed to have assumed Lessor's obligation hereunder." Brokers shall be third party beneficiaries of the provisions of Paragraphs 1.10,'15, 22 and 31. If Lessor fails to pay to Brokers any amounts due as and for brokerage fees pertaining to this Lease when due then such amounts shall accrue Interest. Inaddition, if Lessor fails to pay any amounts to Lessee's Broker when due, Lessee's Broker may send written notice to Lessor and Lessee of such failure and if Lessor fails to pay such amounts within 10 days after said notice; Lessee shall; pay said monies to its Broker and offset such amounts against Rent. In addition, Lessee's Broker shall be deemed to be a third party beneficiary of any commission' agreement entered into by and/or between Lessor and Lessors Broker for the limited purpose of collecting any brokerage fee owed. 15.3 Representations and Indemnities of Broker Relationships. Lessee and Lessor each represent and warrant to the other that it has .had no dealings with any person,. firm, broker or finder (other than the Brokers, if any) in connection with this Lease, and that no one other than said named - Brokers is entitled to any commission or finder's fee inconnection herewith. Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other nannless from and against liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying Party, including any costs, expenses, attorneys' fees reasonably incurred with respect thereto. 16. Estoppel' Certificates.` (a) Each Party (as "Responding Party") shall within 10 days after written notice from the other Party (the "Requesting Party") execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to the then most current "Estoppel Certificate" form published by the American Industrial -Real Estate Association, plus such additional information, confirmation and/or statements as may reasonably requested by the Requesting Party. (b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within such 10 day period, the Requesting Party may execute an Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as may be represented by the Requesting Party, (h) there are no uncureddefaults in. the Requesting Party's performance, and (iii) if Lessor is the Requesting Party; not more than one month's rent has been paid in advance. Prospective purchasers and encumbrancers may rely upon the Requesting Party's Estoppel Certificate, and the Responding Party shall be estopped from denying the truth of the facts contained in said Certificate: (c) If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall deliver -to any potential lender or purchaser designated by Lessor such' financial statements as may be; reasonably required by such lender or purchaser, including but not limited to Lessees financial statements for the past 3 years. All such financial statements shall be received by Lessor and such lender or purchaser in confidence and shall be used only for the purposes herein set forth. 17, Definition of Lessor.` The term "Lesson as used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or, If this is a sublease, of the Lessee's interest in the prior lease. In the event of a transfer of Lessor's title or interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor, Except as provided in Paragraph 15, upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or covenants under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined. 18. Severability. The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof. 19. Days. Unless otherwise specifically indicated to the contrary, the word "days" as used in this Lease shall mean and refer to calendar days. 20. Limitation on Liability. The obligations of Lessor under this Lease shall not constitute personal obligations of Lessor or its partners, members, directors. officers or shareholders, and Lessee shall look to the Project, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against Lessor's partners, members,. directors, officers or shareholders, or any of their personal assets. for such satisfaction. 21. Time of Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed by the Parties under this -Lease. 22. No Prior or Other Agreements; Broker Disclaimer. This Lease .contains all agreements between: the Parties with respect to, any matter mentioned herein, and no otherprior or contemporaneous. agreement or understanding shall be Lessor and Lessee eachrepresents and warrants to the Brokers that it has made, and is relying solely upon, its own. investigation as to the nature quality, character and financial responsibility of the other Partyto this Lease and as to the use nature. quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any -default or breach hereof by. either Party. The liability (including. court costs and attorneys' fees) of any .Broker with respect to negotiation, execution, delivery or performance by either Lessor or Lessee under this tease Or any amendment or, modification hereto shall be limited to an amount up to the fee received by such Broker pursuant to this Lease; provided, however( that the foregoing limitation on each Broker's liability shall not be applicable to any gross negligence or willful misconduct of such Broker. _.:.23. ....Notices. - - 2311 Notice Requirements. All notices required or permitted by this Lease or applicable law shall be in writing and may be delivered in person (by hand or by courier) or may be sent by regular, certified or registered mail or. U.S. Postal Service Express Mail, with postage prepaid, or by facsimile transmission,and shall be deemed sufficiently givers if served in a manner specified in this Paragraph 23. The addresses noted adjacent to a Party's ' signature on this Lease: shall be :that Party's address for delivery or mailing of notices. Either Perky may by written notice to the other specify a different Initials Initials Page 9 o 12 address for notice, except that upon Lessee's taking possession of the Premises, the Premises shall constitute Lessee's address for notice. A copy of all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may from fime to time hereafter designate in writing. 23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or Ifnodelivery date is shown, the postmark thereon. If sent by regular Mail the notice shall be deemed given 48 hours after the same is addressed as required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier that guarantee next day delivery shall be deemed given 24 flours after delivery of the same to the Postal Service or courier. Notices transmitted by facsimile transmission or similar, means shalt be deemed delivered upon telephone confirmation of receipt (confirmation reporffrom fax machine is sufficient), provided a Copy is also delivered via delivery or mail. If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day. 24. Waivers. No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition hereof. Lessor's consent to, or approval of, any act shall not be deemed to fender unnecessary the obtaining of Lessor's' consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent. The acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of moneys or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment. . 25. Disclosures Regarding The Nature of a Real Estate Agency Relationship. (a) When entering into 2 discussion with a real estate agent regarding a real estate transaction, a Lessor or Lessee should from the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction. Lessor and Lessee acknowledge being advised by the Brokers in this transaction, as follows: (i) Lessor's Agent. A Lessor's agent under a listing agreement with the Lessor acts as the agent for the Lessor only. A Lessor's agent or subagent has the following affirmative obligations; To the Lessor. A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Lessor. To the Lessee and the Lessor: a. Diligent exercise of reasonable skills and care in performance of the agent's duties. b. A duty of honest and fair dealing and good faith. c. A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth above. (ii) t : Lessee's Agent. An agent can agree to act as agent for the. Lessee only. In these situations, the agent isnot the. Lessor's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Lessor. An agent acting only for a Lessee has the following affirmative obligations. To the Lessee: A fiduciary duty of utmost care Integrity, honesty, and loyalty in dealings with the Lessee. To the Lessee and the Lessor. a. Diligent exercise of reasonable skills and care in performance of the agent's duties b. A duty of honest and fair dealing and good faith, c. A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth above (iii) Agent'Reoresentino Both Lessor and Lessee. A real estate agent, either acting directly or through one or more associate licenses, can legally be the agent of both the Lessor and the Lessee in a transaction, but only with the knowledge and consent of both the Lessor and the Lessee. in a dual agency situation, the agent the following affirmative obligations to both the Lessor and the Lessee: a. A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Lesser or the Lessee. b. Other duties to the Lessor and the Lessee as stated above in subparagraphs (i) or (ii). In representing both Lessor and Lessee; the agent may not without the express permission of the respective Parry, disclose to the other Party that the Lessor will accept rent in an amount: less than that indicated in the listing or that the Lessee is willing to pay a higher rent than that offered. The above duties of the agent in areal estate transaction do not relieve a Lessor or Lessee from the responsibility to protect their own interests. Lessor and Lessee should carefully read all agreements to assure that they adequately express their understanding of the transaction. A real estate agent is. a person qualified to advise about real estate. If legal or tax advise is desired, consult a competent professional. (b) Brokers have no responsibility with respect to any default or breach hereof by either Party. The liability (including court costs and attorneys' fees), of any Broker with respect to any breach of duty, error or omission relating to this Lease shall not exceed the fee received' by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Broker's liability shall not be applicable to any gross negligence or willful misconduct of such Broker. (c) Buyer and Seller agree to identify to Brokers as "Confidential" any communication or information given Brokers that is considered by such Party to be confidential. 26. No Right To Holdover. Lessee has no right to retain' possession of the Premises or any part thereof beyond the expiration or termination of this `..Lease. In the event that Lessee holds over, then the Base Rent shall be increased to 150% of the Base Rent applicable immediately preceding the expiration or termination. Nothing contained herein shall be construed as consent by Lessor to any holding over by Lessee. 27. 1Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in 28. Covenants and Conditions; Construction of Agreement. All provisions of this Lease to be observed or performed by Lessee are both - covenants and conditions. In construing this Lease, all headings and titles are ter the convenience of the Parties only and shall not be considered a part of this Lease. Whenever required by the context, the singular shall include the plural and vice versa. This Lease shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it. 29. Binding Effect; Choice of Law. This Lease shall be binding upon the Parties, their.personal representatives, successors and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are located. - 30. 'Subordination; ABornment; Non -Disturbance.. - - - 30.1 Subordination. This Lease and any Option granted hereby shall be subject and subordinate to any ground lease, mortgage, deed of trust or other hypothecation or security device (collectively, "Security Device"), now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to all renewals, modifications; and extensions thereof. Lessee agrees that the holders of any such Security Devices (in this tease' together referred to as "Lender) shall have no liability or obligation to perform any of the obligations of Lessor under this Lease. Any Lender may elect to have this Lease and/or any Option granted hereby superior to the lien of its Security Device by giving written notice thereof to Lessee, whereupon this Lease and such Optionsshail be deemed prior to such Security Device; notwithstanding the relative dates of the documentation or recordation thereof. 30.2 Atiornment. 1n the event' that Lessor transfers title to the Premises; or the Premises are acquired by another upon the foreclosure or termination of a Security Device to which this Lease is subordinated (i) Lessee shall, subject to the nondisturbance provisions of Paragraph 30.3; atiom to such new owner, and upon request, enter into a nowiease, containing 211 of the terms and provisions of this Lease, with such new owner the remainder of the term hereof, or, at the election of such new owner, this Lease shall automatically become a new Lease between Lessee and such new owner, upon all of the terms and conditions hereof, for the remainder of the term hereof, and (ii) Lessor shall thereafter be relieved of any further obligations hereunder and such new owner shall assume all of Lessor's obligations hereunder, except that such new.ownershall not:.. (a) be liable for any act or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership; (b) be subject to any offsets or defenses which Lessee might have against any prior lessor, (c) be bound by prepayment of more than one month's rent, or (d) be liable for the return of any security deposit paid to any prior lessor. 30.3 Non -Disturbance. With,respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee's subordination of this Lease shall be subject to receiving a commercially reasonable non -disturbance agreement (a "Non -Disturbance Agreement") from the Lender. which Non -Disturbance Agreement provides that Lessee's possession of the Premises, and this Lease, including any options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attoms to the record owner of the Premises. Further; within 60 days after the execution of this Lease. Lessor shall use its commercially reasonable efforts to obtain a Non -Disturbance Agreement from the holder of any pre-existing Security Device which is secured by the Premises. In the event that Lessor is unable to provide the Non -Disturbance Agreement within'said 60 days, then Lessee may, at Lessee's option, directly contact Lender and attempt to negotiate for the execution and delivery of a Non -Disturbance Agreement. 30.4 Self -Executing. The agreements, contained in this Paragraph 30 shall be effective without the execution of any further documents; provided, however.: that,. Upon written request from Lessor or a Lender in connection with asale, financing orrefinancing of the -Premises; Lessee and Lessor' `shall execute such further writings as may be reasonably required to separately document any subordination, attomment and/or Non -Disturbance Agreement provided forherein. - 31. Attorneys' Fees. If any Party or Broker brings an action or proceeding involving the Premises whether founded in tort, contractor equity, or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such fees may be awarded in the same suit or recovered in separate suit, whether or not such action or proceeding is pursued to decision or judgment. The tern, "Prevailing Party" shall include, without limitation, a Parry or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim ordefense. The'attomeys' fees award shall. not .be computed in, accordance with any court fee schedule, but shall be. such as to fully reimburse: all attorneys' fees reasonably: incurred. In addition, Lessor shall be entitled to attorneys' fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach ;($200 Is a reasonable minimum per occurrence for such services and consultation). 32. Lessor's Access-, Showing Premises; Repairs. Lessor and Lessor's agents shall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times for the purpose of showing the some to prospective purchasers, lenders; or tenants, and making such alterations,' repairs, improvements or additions to the Premises as Lessor may deem necessary -or,desirable and the erecting, using and maintaining of Initials Initials Page 10'of 12 :.. ' utilities, services, pipes and Conduits through the Premises and/or other premises as long as there is no material adverse effect to Lessee's use of the Premises. All such activities shall be without abatement of rentor liability to Lessee. Lessor may at any time placeon the Premises any ordinary"For Saie " signs and Lessor may during the last 6 months of the term hereof place on the Premises any ordinary "For Lease" signs. to addition, Lessor shall have the right to retain keys to the Premises and to unlock all doors in or upon the Premises other than to files, vaults and safes, and in the case of emergency to enter the Premises by any reasonably appropriate means and any such eritry shall not be deemed a forcible or unlawful entry or detainer of the Premises or an eviction. Lessee waives any charges for damages or injuries or interference with Lessee's property or business in connection therewith. ` 33. Auctions. Lessee shall not conduct, nor permit to be conducted any auction upon the Premises without Lessor's prior written consent. Lessor ' shall not be obligated to exercise any standard of reasonableness in determining whether to permit an auction: 34: Signs. Lessee shall not place any sign upon the Project without Lessor's prior written consent. 35, Termination; Merger. unless specifically stated otherwise in writing by Lessor; the volun ry or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof. ora termination hereof by Lessor for Breach by Lessee, shal automatically terminate any sublease or lesser estate in Premises; provided, however, that Lessor may elect to continue anyone or all existing subtenanc es Lessors failure within 10 days following any such event to elect to the contrary by written notice to the holder of any such lesser interest;shall constitu a Lessor's election to have such event constitute the termination of such interest. 36. Consents. Except as otherwise provided herein; wherever in this Lease the consent of a Pai ty is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed. Lessor's actual reasonable costs and expert es (including but not limited to architects', attorneys', engineers' and other consultants' fees) incurred in the consideration of, or response to, a request by LE ssee for any Lessor consent, including but not limited to consents to an assignment, a;subletting or the presence or use of a Hazardous Substance, shat be paid by Lessee upon receipt of an invoice and supporting documentation therefor. Lessor's consent to any act, assignment or subletting' shall not constitute an acknowledgment that no Default or Breach by Lessee of this Lease exists, nor shall such consent be deemed a waiver of any then existing Default or Breach, except as may otherwise specifically stated in writing by Lessor at the time of such consent. The failure to specify herein any particular condition to Lessors consent shall not preclude the imposition by lessor at -the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. In the event that either Party disagrees with any determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and in reasonable detail within 10 business days following such request. 37. Guarantor. 37.1 Execution. The Guarantors, if any, shall each execute a guaranty in the form mo i recently published by the American Industriat Real Estate Association. 37.2 Default. It shall constitute a Default of the Lessee if any. Guarantor fails or refises, upon request to provide: :.(a) evidence of the execution of the guaranty, including the authority of the party signing on Guarantor's behalf to obligate uarantor, and in the case of a corporate Guarantor, a certified copy of a resolution of its board of directors authorizing the making of such guaranty; (b) current financial statements, (0) an Estoppel Certificate, or (d) written confirmation that the guaranty is still in effect. 38. Quiet Possession. Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on Lessee's part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoymefit of the Premises during the term hereof. 39. Options. 1f Lessee is granted an. Option, as defined below, then the following provisions shall apply. 39.1 Definition. "Option" shall mean: (a) the right to extend the term of or renew this ase or to extend or renew any lease that Lessee has on other property of Lessor; (b) the right of first refusal or first offer to lease either the Premises or other property of Lessor, (c) the right to purchase or the right of first refusal to purchase the, Premises or other property of Lessor. 39.2 Options Personal To Original Lessee. Any Option granted to Lessee in this Lease is personal to the original Lessee, and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is i i full possession of the Premises and, if requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning or subletting. 39.3 Multiple Options. In the event that Lessee has any multiple Options to extend or renew this Lease, a later Option cannot be exercised unless the prior Options have been validly exercised. 39.4 Effect of Default on Options, (a) Lessee shall have no right to exercise an Option: (i) during the period com encIng with the giving of any notice of Default and continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (without regard to mhether notice thereof is given Lessee), (iii) during the time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given- 3 or more notices of separate Default; whether or not the Defaults are cured, during the 12 month period immediately preceding the exercise'of the Option. (b) The period of time within which an Option may be exercised shall not be extnded or enlarged by reason of Lessee's inability to exercise an Option because of the provisions of Paragraph 39.4(a). (c) An Option shall terminate and be of no further farce or effect, notwithstandin4 Lessee's due and timely exercise of the Option, if, after such exercise and prior to the cummencement of the: extended term or completion of the purchase, (i) Lessee fails to pay Rent for a period of 30 days after such Rent becomes due (Othout any necessity of Lessor to give notice thereof), or (ii) if Lessee comm a Breach of this Lease. 40. Security Measures. Lessee hereby acknowledges that the Rent payable to Lessor hereund r does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the Premises. Lessee, its agents and invitees and their property from the acts of third parties. In the event however, that Lessor should elect to provide security services, then the cost thereof snail be an Operating Expense. - - - -41- Reservations. - - (a) Lessor reserves the right (i) to grant, without the consent or joinder of Lessee such easements, rights and dedications` that Lessor deems. necessary; (it) to cause the recordation of parcel maps and restrictions, (iii) to create and/or install new utility raceways, so long as such easements, rights, dedications, maps; restrictions, and utility raceways; do not unreasonably interfere with the use f the Premises by Lessee. Lessor may also: change the name, address or title of the Building or Project upon at least 90 days prior written notice; provIdD and install, at Lessee's rexpense, Building standard . graphics or, the door. of the Premises and such portions of the Common Areas as Lessor shall re 3sonably: deem appropriate; grant to anylessee the exclusive right to conduct any business as long as such exclusive right does not Conflict with any iii; his expressly given herein; and to place such signs, notices or displays as Lessor reasonably deems necessary or advisable upon the roof, exterior of the E uilding or the. Project or on pole signs in the Common Areas. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate such rights The obstruction of Lessee's view, air; or light by any structure erected in the vicinity of the Building, whether by Lessor or third parties, shall in no way affect i his Lease or impose any liability upon Lessor. (b) Lessor also reserves the right to move Lessee to other space of comparables ze in the Building or Project. Lessor must provide at least 45 prior written notice of such move, and the new space must contain improvements of compa ble quality to those contained within the Premises. Lessor shall pay the reasonable out of pocket costs that lessee incurs with regard to such relocation, including the expenses of moving and necessary stationary revision costs. In no event, however, shall Lessor be required to pay an amount in excess of two months Base Rent Lessee may not be relocated more than once during the term of this Lease. (c) Lessee shall not: (1) use a representation (photographic or otherwise) of the Building or Project or their name(s) in .connection with Lessee's business; or (ii) suffer or permit anyone, except in emergency, to go upon the roof of the Buildi ig. 42. Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions hereof, the Parry against whom the obligation to pay the money; is asserted shall have the right to make payment "under protest" and such payment shall not be regarded as a voluntary payment and there shall survive the right on the part of.s Id Party to institute suit for recovery of such sum. If it shall oe adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be -entitled to recover such sum or so much thereof as it was not legally required to pay. 43. Authority. (a) if either Party hereto is a corporation trust, limited liability company, partnei ship, or similar entity, each individual executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. Each party'shall, within 30 days after request, deliver to the other party satisfactory evidence of such authority. (b) If this Lease is executed by more than one person or entity as "Lessee", eacri such person or entity shall be jointly and severally liable hereunder. It is agreed that any one of the named Lessees shall be empowered to execute anymendmentto this Lease, or other document ancillary - thereto and bind all of the named Lessees, and Lessor may rely on the same as ifallof the named Les: es had executed such document. 44. Conflict. Any conflict between the printed provisions of this Lease and the; typewritten or handwritten provisions shall be controlled by the typewritten' or handwritten provisions. - - 45. Offer. Preparation of this Lease by either party or their agent and submission of same to the other Party shall not be deemed an offer to lease to the other Party. This tease is not intended to be binding. until executed-and'delivered by all Parties: hereto. - 46. Amendments. This Lease may be modified only writing, signed by the Parties in interest at the time of the modification. As long as they do not materially change Lessee's obligations hereunder, Lessee agrees to Make such reasonable nonmonetary modifications to this Lease as may be reasonably - required by a Lender in connection with the obtaining of normal financing or refinancing of the Premises. 47. Multiple Parties: If more than one person or entity is named herein as either Lessor or Lessee; such multiple Parties shall have joint and several - responsibility to comply with the terms of this Lease. 48. Waiver of Jury Trial THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO'TRIAL BYJURY IN ANY AC11ON OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT. Initials Initials Page 11 of 12 - .,..,. .; r�-t,�� r ons! c - A-�,. r...� octr cvn - cno ncr• n n ' +49. Mediation and Arbitration of Disputes. An Addendum requiriAg the Mediation and/or the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease ❑ is 0 is not attached to this Lease. 50. Americans with Disabilities Act. In the event that as a result of Lessees use, or intended use, of.the Premises the Americans with Disabilities Act or any similar law requires modifications or the construction or installation of improvements in or to the Premises, Building; Project andlor Common Areas, the Parties agree that such modifications, construction or improvements shall be made at:0 Lessor's expense 0 Lessee's expense. LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, A T THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES. ATTENTION: NO REPRESENTATIOROR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES, THE PARTIES ARE URGED TO`. 1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE. 2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE ,PRESENCE OF HAZARDOUS SUBSTANCES. THE ZONING AND SIZE OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT AND THE SUITABILITY OF THE PREMISES FOR LESSEE'S INTENDED USE. WARNING: IF THE PREMISES ARE LOCATED IN ASTATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAYNEEDTO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THF PREMISES ARE LOCATED. The parties hereto have executed this Lease, at the place and on the dates Lpeciffed above their respective signatures - Executed at: Executed at: e By LESSOR: By LESSEE: -SOUTH COAST AIR QUALITY MANAGEMENT CITY CF DIAMOND BAR', a municipal DISTRICT a -public agency corporation By By Name Printed Name Printed: -- Title: Title. By: By: Name Printed. Name Printed: Title: Title: Address: 21865 E. Copley Drive Address:;21660i E. Copley Drive, Suite 100 Diamond Bar, California 91765-4182 ) Diamond Bar, California91765-4177 (909) 396-2000 / FAX: (909) 396-3340 Telephone I Facsimile "Telephone / Facsimile Federal ID No. Federal ID No, LESSOR'S - LESSEE'S - BROKER: BROKER: Attn Attn: Address: Address`. Telephone f Facsimile No. Telephone/ Facsimile No. These forms are often modified to meet changing requirements of lawlind needs of the industry: Always write or call to make sure you are utilizing the most current form: American Industrial Real Estate Association, 700 South Flower Street, Suite 600, Los Angeles, CA 90017, (213) 687-8777. ©Copyright 1999 -By American Industrial Real Estate Association: All rights reserved. No part of these works may be reproduced in any form without permission in writing APPROVED AS TO FORM BARBARA BAIRD, DISTRICT:COUNSEL Br Initials Initials Page 12 of 12 r` X000. Amo..�nn I...Irefin! Rail cef�<o Aee:n :niinn. Rc\'ICcn - eP1R�� Icrr �,nl(I.nc ADDENDUM THIS ADDENDUM supplements the terms and provisions of that certain Standard Multi - Tenant Office Lease - Gross between South Coast Air Quality Management District, as Lessor, and the City of Diamond Bar, as Lessee, dated as of October 11, 2000 (the "Lease") as follows: 51. Base Rent. Each 12 -month period during the term of this Lease, beginning with the Commencement Date, will constitute a "Lease Year." Base Rent during. the first Lease Year is $19,993.05 per month, as set forth in Section 1.5 above, which amount is based on $i.65 per square foot times I2,117 square feet. This Base Rent amount will remain in effect for the first two Lease Years; provided, however, that from the Commencement Date through January 31, 2002, monthly Base Rent otherwise due hereunder will be abated and Lessee's first monthly payment ofBase Rent will be due and payable February 1, 2002. Such rent abatement is given by Lessor to Lessee in recognition of Lessee's continued obligations under its existing lease which will not expire until January 31, 2002. Lessee agrees that it will use reasonable business efforts to sublet its current office space through the end of the term of its existing ,lease (January 31, 2002) and that following the Commencement Date, any net sublease rental income received by Lessee with respect to such existing lease will be paid by Lessee to Lessor within five (5) business days followingreceipt. Lessee agrees that it will use reasonable business efforts to sublet its current office space through the end of the term of its existing lease. During subsequent Lease Years, monthly Base Rent will be as follows: Lease Years Rate Per Square Foot Total Monthly Base Rent 3 and 4 $1.70 $207598.90 5 and 6 $1.75 $21,204.75 7 and ;8 $1.80 $21,810.60 9 and 10 $1.85 $22,416.45 52. Services Provided by Lessor. Lessor will provide, for the benefit of the Building, 24- hour security service, janitorial services (5 days per week) and will also provide utility services for the Premises as well as modular furniture workstations and use of conference center facilities for Lessee's City Council, Planning Commission and similar City meetings; pursuant to an agreed upon schedule which will allow joint use of such facilities by Lessor and Lessee on a cooperative basis. 53. Business Hours for the Buildin . The Premises will be available for use by Lessee on a twenty-four (24) hour per day, seven (7) days per week basis. Notwithstanding the above hours, Lessee acknowledges that building services (i.e. air conditioning) will be limited between the hours of 10:00 p.m. and 6:00 a.m. on weekdays and 9:00 p.m. and 6:00 a.m. on weekends. I� z - 1=J F/ V �.17j o .. � m l!1a n/ 4 L wa z O ' I H Y Q E ED t7 2 IIIJJJII ZUZ I� WO rWW l H c wo Q—� //" ❑ w z� Q a � d ,p -� p J %' %r, SLI✓ o5 w FROM TO ALPLAN PHONE NO. 909 369 1932 Oct. 122000 02:44AM P2 AQAID SIF 10.1262000 AQMD - MVEN'TORY MOIO112 1S:'5318 Mfg MY :.. rt # _-- Desedpoon 10_0-my Unit Extended 1 HAP 18 HFN-2468 STRAIGHT FABRIC PANEL NO-PWR 24" X 68" ,OF- -,OF- -,TR- -,TR- . 2' HAP 14 HFN-3068 STRAIGHT FABRIC PANEL NO-PWR 30"X 68" OF. -,OF- -.TR- -.TR- - 3 HAP 5 HFN-3668 STRAIGHT FABRIC PANEL NO-PWR 313"X68" OF- -,OF- -',TR -,TR- - 4' - HAP 11 HFN-4868 STRAIGHT FABRIC PANEL NO-PWR 48-X 88" OF- -.OF- -.TR. -,TR. ~ S HAP; 2 HFN-2444 STRAIGHT FABRIC PANEL NO-PWR 24" X 44" 'OF. -,OF- _,TR. ~.TR. - 6 HAP 1 HFN-3644 STRAIGHT FABRIC PANEL NO-PWR 36"'X 4, -1 HAP 1 HFN-4S" STRAIGHT FABRIC'PANE:L NO-PWR 48"X44" ,OF- -,OF- -,TR- -,TR- ~ 8 HAP 14 HFP-2468 STRAIGHT FABRIC PANEL POWER' 24" XS8" ,OF- -,OF- -,TR- -,TR. - 9 HAP 78 HFP'-3688 STRAIGHT FABRIC PANEL POWER' '38"X 68" .OF- -,OF- -.TR- -,TR- 10 HAP 107 HFP48N STRAIGHT FABRIC PANEL' POWER 48" X 68" ,OF- -,OF. -.TR- --..TR- - 11 HAP 3 HFP-6068 STRAIGHT FABRIC PANEL POWER 60"X 88" OF- .- ,OF- --,TR -- ,TR- -- 12 HAP 1 HFP 24{4 STRAIGHT FABRIC PANEL POWER 24" X 44- 13 HAP 2 HFP-3044 STRAIGHT FABRIC PANEL POWER 30" X 44" ,OF -.OF- TR- -.TR- - 14 HAP ` 10 MFP-3644 STRAIGHT FABRIC PANEL POWER 36"X44' ,OF- - ,OF- -,TR- -,TR- - TOTALPLAN BUSINESS INTERIORS Pagel FROM : , TO r,ALPL.AN PHONE NO. 909 369 1932 Oct. 12 2000 02: 45AM P3 AQM SIF 10.12-2800 AflMD - INVENTORY MO1ttM2 15:53:18 (i!N Part # DescriptioI Options Uwt ExtenAed 15 HAP 3 HFP-4844 STRAIGHT FABRIC PANEL POWER 48" X 44' 16 HAP 3 HFP-6044 STRAIGHT FABRIC PANEL POWER 60" X 44" .OF- -,OF- -,TR- -.TR- - 17 HAP 5 BFM-1-8 BASE FEED MODULE -HARDWIRE 18 HAP . 8 HTFM-0004 TOP FEED MODULE 90",PNL HT 44» 8, 50" TR- -,TR- 19 HAP 12 HFN-3068 STRAIGHT FABRIC PANEL TIO-PWR 30" X88" - OF-- ,OF- -.TR- - TR_ .. „ 20 HAP 1 WS 224 REGULAR WORK SURFACE 24" X 24- .014- - jW -,TR, -- 21 HAP 14 WS -324 REGULAR WORK SURFACE 36"X 24" .OH- - .TFL -`,TR - 22" HAP 19 WS424 REGULAR WORK SURFACE 48" X 24 OH- -.TFL -.TR. - 23 HAP 10 W"24 REGULAR WORK SURFACE 72" X 24" .OH- -.TR- -,TR- -- 24 HAP .3 WS -9624 REGULAR WORK SURFACE 96" X 24" .OH- —.TR- —,-TR- 25 HAP 14 WS -9530 REGULAR WORK SURFACE 96" X 30" ,014 -,TR --,T(? -. 26 HAP 1 WASC-324 CURVED WRAP-AROUND WORK SURF. 39'X 2A- ,01-1- - ,TR-- .TR- - 27 HAP 7 WRCS-324 90 DEG. CORNER WORK SURFACE W10 KEYBOARD PAD 36"X 24" ,OH- -,TR- -.TR- , 28 HAP 3 WAST -424 90 DEG WRAP-AROUND WS, W/a AKP 48"X'24' .OH- -,TR- -- QTR- - TOTALPLAN'BUStNESS INTERIORS Page 2 FROM : ,ATO,ALPLAN PHONE NO. : 909 369 1932 Oct. 12 02:45AM P4 AO MMSIF AGM -INVENTORY IMMW12 15:53 9 � ._QtY_ Pad # _ .:. .. De6anp6o�f i Mons � n t Extended 28 HAW 35 SR -3 REGULAR SHELF 36" ,ov .; .TR- - ,TR--' 30 HAW 76 SR -4 REGULAR SHELF 48" 31 HAW 18 FORF-3 REG. FLIPPER DOOR - FABRIC 36" HC- - .OE->- ,TR- -,TR- - 32 HAW 35 FDRF•4 REG. FLIPPER DOOR - FABRIC 48" ,HC= - ,OF-- ,TR- -,TR- - 33 HAP 35 RDS-20-HLN ; SUSPENDED PEDESTAL DRAWER 2(r TR_ - 34 HAP 6 PDS-20-JLN SUSPENDED PEDESTAL DRAWER 20" TR 35 HAP - 65 HTL-0036-T TASK LIGHT 36" TR -- R--36 36 HAP 15 HTL-0048-T TASK LIGHT 48" TR- - 37 HAP 36 HTS -3616 TACKBOARD 3G' X 16" OF -- F-38 38- HAP 40 HTO -4816 TACKBOARD 48"X W 39 HAP 23 AKPT-3 AKP - TILTING KEYBOARD PAD W/O PALM REST TR:- 40 HAP 12 HWSP-2429-R WORK SURFACE SUPPORT PANEL 24" HP- 41 HAP ` 6 DWST-M D-TOP,'kIINYL EME,72" X 36" REOUIRES=MOUNT KiTISUPPORTCOL ,OH- TR 42 HAP 6 HCC -Owl D -TOP SINGLE -LECs BASE, ADJUSTABLE HEIGHT 26-30" TR- - ,TR- TOTALPLANBUSINESS INTERIORS Page 3 CITY OF DIAMOND BAR AGENDA REPORT AGENDA NO. TO: Honorable Mayor and Members of the City Council MEETING DATE: October 17, 2000 REPORT DATE: October 11, 2000 FROM: Terrence L. Belanger, City Manager TITLE: A Resolution authorizing representatives of the City of Diamond Bar to acquire federal surplus property from the California State Agency for Surplus Property. DISCUSSION: Since March 19, 1996, the City of Diamond Bar has maintained eligibility to participate in the Federal Surplus Program. The Department of General Services Procurement Division is requesting eligibility 'renewal. Only names listed will be considered current and all previous authorizations will be rescinded.' Surplus under this program includes military and state items ranging from buses and forklifts to computers and desks. The Eligibility Renewal Application and Terms and Conditions are included in the Resolution. Renewal of eligibility will be required' in three years. Approval of this resolution will allow the City to purchase federal surplus items. However, there is no cost associated with this action, as there are no identified items to be purchased. The approval of the resolution will merely provide the City with an opportunity to purchase items in the future should items required by the City be available through this program. All purchases made through this program will conform to the City's purchasing policies & procedures. RECOMMENDATION: It is recommended that the City Councilof the City,of Diamond Bar adopt Resolution No. 2000 -XX, authorizing representatives of the City of Diamond Bar to acquire federal surplus property from the California State Agency for Surplus Property. LIST OF ATTACHMENTS: Staff Report _, Public Hearing Notice A Resolution(s) — Bid Specification Ordinance (s) Other: _ Agreement(s) SUBMITTAL CHECKLIST: 1. Has the resolution, ordinance or agreement been reviewed Yes X No by the City Attorney? 2. Does the report require a majority vote? X Yes No 3. Has environmental impact been assessed? N/A Yes No 4. Has the report been reviewed by a'Commission? N/A Yes No 5. Are other departments affected by the report? — Yes X No REV JEWEP BY: Terrence L. Belan r David A. Doyle Teresa Arevalo City Manager Deputy City Manager Sr. Administrative Assistant TERMS AND CONDITIONS (A) THE DONEE CERTIFIES THAT: (1) It is a public agency; or a nonprofit institution or organization, exempt from taxation under Section 501 of the Internal Revenue Code of 1954; within the meaning of Section 2030) of the Federal Property and Administrative Services Act of 1949, as amended, and: the regulations of the Administrator of General Services. (2) If a public agency, the property is needed and will be used by the recipient for Y p� ient carrying out or promoting for the residents of a'given political area one or more public purposes, or, if a nonprofit tax-exempt institution or organization, the property is needed for and will be used by the recipient for educational or public health purposes, including research for such purpose, or for programs for older individuals. The property is not being acquired for any other use or purpose, or for sale or other distribution; or for permanentuseoutside the state, except with prior approval of the state agency. (3) Funds are available to pay all costs and charges incident to donation. (4) This transaction shall be subject to the nondiscrimination regulations governing, the donation of surplus personal property issued under Title VI of the Civil Rights Act of 1964, Title VI, Section 606, of the Federal' Property and Administrative Services Act of 1949, as amended, Section 504 of the Rehabilitation Act of 1973, as amended, Title IX of the Education Amendments of 1972, as amended, and Section 303 of the Age Discrimination Act of 1975. (B), THE DONEE AGREESTO THE FOLLOWING FEDERAL CONDITIONS: (1) All items of property shall be placed in use for the purpose(s) for which acquired within one year of receipt and shall be continued in use for such purpose(s) for one year from the date the property was placed in use. In the event the property is not so placed in use, or continued in use, the donee shall immediately notify the state agency and, at the donee's expense, return such 'property ,to the state agency, or otherwise make the property available for transfer or other disposal by the state agency, provided the property is still usable as determined by the state agency. (2) Such special handling or use limitations as are imposed by General Services Administration" (GSA) on any item(s) of property listed hereon. (3) In the event the property is not so used or handled as required by (B)(1) and (2), title and right to the possession of such property shall at the option of GSA revert to the United States of America and upon demand the donee shall release such property to such person as GSA or its designee shall direct. (C)' THE DONEE AGREES TO THE FOLLOWING CONDITIONS IMPOSED BY THE STATE AGENCY, APPLICABLE TO ITEMS WITH A UNIT ACQUISITION COST OF $5,000. OR MORE AND PASSENGER MOTOR VEHICLES, REGARDLESS OF 'ACQUISITION COST, EXCEPT VESSELS 50 FEET OR MORE IN LENGTH AND AIRCRAFT: (1) The property shall be used only for the purposes) for which acquired and for no other purpose(s). (2) There shall be a period of restriction which will expire after such property has been used for the purpose(s) for whichacquired for a period of 18 months from the date the property is placed in use, except for such items of major equipment, listed hereon on ,which the state agency designates further period of restriction. (3) In the event the property is ,not so used as required by (C)(1) and (2) and federal restrictions (B)(1) and (2) have expired then title and right to the possession of such property shall at the option of the state agency revert to the State of California and the donee shall release such property to such person as the state agency shall direct. (D) THE DONEE AGREES TO THE FOLLOWING TERMS, RESERVATIONS, AND RESTRICTIONS: (1) From the date it receives the property listed hereon and through the period(s) of time the conditions imposed by {B) and (C) above remain in effect, the donee shall not sell, trade, lease, lend, bail, cannibalize, encumber, or otherwise dispose of such property, or; remove it permanently, for use outside the state, without the prior approval of GSA under (B) or the state agency under (C). The proceeds from any sale, trade, lease, loan, bailment, encumbrance, or other disposal of the property, when such action is authorized by GSA or by the state agency, shall be remitted promptly by the donee to GSA or the state agency, as :the case may be, (2) In the event any of the property listed hereon is sold, traded, leased, loaned, bailed, cannibalized, encumbered, or otherwise disposed of by the donee from the date it receives the property through the period(s) of time the conditions imposed by (B) and (C) remain in effect, without the prior approval of GSA or the state agency, the donee, at the option of GSA or the state' agency, shall pay to GSA or the state agency, as the case may be, the proceeds of the disposal or the fair market value or the fair rental value of the property at the time of such disposal, as determined by GSA or the state agency. (3) If at any time, from the date it receives the property through the period(s) of time the conditions imposed by (B) and (C) remain in effect, any of the property listed hereon is no longer suitable, usable, or further needed by the donee for the purpose(s) for which acquired, the donee shall' promptly notify the state agency, and shall, as directed by the state agency, return the property to the state agency, release the property to another donee or another state agency or a department or agency of the United States, 'sell, or otherwise dispose of the property. The proceeds from any sale shall be remitted promptly by the donee to the state agency: (4) The donee shall make reports to the state agency on the use, condition, and location of the property listed hereon and on other pertinent matters as may be required from time to time by the state agency. (5) At the option of the state agency, the donee may abrogate the conditions set forth in (C) and the terms, reservations, and restrictions pertinent thereto in (D) by -payment of an amount as determined by the state agency. (E) THE DONEE AGREES TO THE FOLLOWING CONDMONS, APPLICABLE TO ALL ITEMS OF PROPERTY LISTED HEREON: (1) The property acquired by the donee is on an "as is," "where is" basis, without warranty of any kind, (2) Where a donee carries insurance against damages to or loss of property due to fire or other hazards and where loss of or damage to donated property with unexpired terms, conditions, reservations, or restrictions occurs, the state agency will be entitled to reimbursement from the donee out of the insurance proceeds, of an amount equal to the unamortized portion of the fair value of the damaged or destroyed donated -items. (F) TERMS AND CONDITIONS APPLICABLE TO THE DONATION OF AIRCRAFT AND VESSELS (50 FEET OR MORE IN LENGTH) HAVING AN ACQUISITION COST OF $5,000 OR MORE, REGARDLESS OF THE PURPOSE FOR WHICH ACQUIRED: The donation shall be subject to the terms, conditions, reservations, and restrictions set forth in the Conditional Transfer, Document executed by the authorized donee representative r92 64895 AGENDA NO. CITY COUNCIL REPORT TO: Honorable Mayor and Members of the City Council FROM: Terrence L. Belanger, City Manager SUBJECT: Inland ValleyHumane Society and S.P.C.A. (IVHS) Contractual Services FY 00-01 ISSUE;STATEMENT Should the City Council approve animal care and control services agreement as submitted by the NHS in the amount of $72,486 for FY 00-01 or approve the agreement at the current rate in the amount of $65,244 by adopting a new fee schedule? RECOMMENDATION It is recommended that the City Council of the City of Diamond Bar: 1. Approve the FY 00-01 contract for animal control services with IVHS in the amount of $65,244; and, 2. Through the public hearing process, adopt a new fee schedule as recommended by the IVHS. FINANCIAL SUMMARY No budget adjustment is necessary since the FY 00-01 budget includes animal contract services in the amount of $65,244. BACKGROUNDIDISCUSSION The contract for animal control services through the NHS expired June 30, 2000. NHS has submitted a contract for FY 00-01 in the amount of $72,486. This is a $7242 increaseover last year's contract amount ($65,244). In a letter received from Executive Director William Harford, the IVHS provides three options: a one-year contract with no increase to the contract rate, which adopts a new The schedule; a one-year contract with a $7242 increase and no change to the fee schedule; or, a three-year contract with no increase to the contract rate, which adopts a new fee schedule'. IVHS will agree to a three-year contract only if the proposed fee schedule is adopted. The three-year contract will also have a CPI provision for years two and three. The proposed fee schedule submitted by NHS will result in increases to dog license, food and care, and miscellaneous fees.' The increases range from $3 to $t5. There are a significant number of fees, Staff Report - IVHS Contract for FY 00-01 Page 2 - including all impound fees that will remain the same. The proposed schedule with all fees is included in this staff report. It should be noted that the NHS has not had an increase to the fee schedule since incorporation. The fee schedule will assist the NHS by making the Diamond Bar fee schedule uniform with the other contract agencies they serve. In addition, the proposed fee schedule will assist in offsetting'costs particularly those relating to the impact of SB 1785 (Hayden Bill). SB 1785, Chaptered September 23, 1998, requires shelters to "Keep animals for a minimum of three business days before they are put up for adoption and a minimum of six business days before they are euthanized." This bili has resulted in increased costs associated with impounding of animals held at IVHS. In order to evaluate the options presented by IVHS, staff has contacted Los Angeles County for cost estimate for animal care and control services. The estimate cost for the first year is $95,000 (program cost $187,500.1ess revenue $92,500). The second year estimate is approximately $60,000 (cost $139,500 less revenue $79,000). The first year estimate is significantly higher because LA County will require the City to offset the cost of:a new field truck ($35,000).LA County indicated that these cost estimates for the first and second year are based on the current level of licensing and the assumption that Los Angeles County is able to retain license compliance from current IVHS licensees. A drawback to contracting with the County is that if the City of Diamond Bar contracts with Los Angeles County, the facility to serve Diamond Bar will be the Baldwin Park facility. This location is approximately twelve (12) miles from Diamond Bar (City Hall location), whereas, the current NHS shelter is only five (5) miles away from Diamond Bar. Based on the above information, staff recommends that the City Council approve a one-year contract at the current'annual rate of $65,244 -and through the public hearing process, adopt a new fee schedule as recommended by the IVHS. If approved by the City Council, staff will schedule a public hearing on October 19, 2000 to present the proposed fee changes. Attachments: A. NHS Agreement B. Letter from NHS Executive Director, William C. Harford C. Proposed Fee Schedule D. Impact of Senate Bill 1785 E. Los Angeles County Cost Estimates F. 00-01 Animal Control Cost Breakdown Prepared by: Teresa Arevalo Senior Administrative Assistant Staff Report - IVHS Contract for FY 00-01 page 2 including all impound feesthat will remain the same. The proposed schedule with all fees is included in this staff report: It should be noted that the IVHS has not had an increase to the fee schedule since incorporation. The fee schedule will assist the IVHS by making the Diamond Bar fee schedule" uniform with the other contract agencies they serve. In addition, the proposed fee schedule will assist in offsetting costs particularly, those relating to the impact of SB 1785 (Hayden Bill): SB 1785, Chaptered September 23, 1998, requires shelters to "Keep animals for a minimum of three business days before they are put up for adoption and a minimum of six business days before they are euthanized." This bill has resulted in increased costs associated with impounding of animals held at IVHS. In order to evaluate the options presented by NHS, staff has contacted Los Angeles County for a cost estimate for animal care and control services. The estimate cost for the first year is $95,000 (program cost $187.500 less revenue $92,500). The second year estimate is approximately $60,000 (cost $139,500 less revenue' $79,000). The first year estimate is significantly higher because LA County will require the City to offset the cost of a new field truck ($35,000). LA County indicated that these cost estimates for the first and second year are based on the current level of licensing and the assumption that Los Angeles County is able to retain license compliance from. current IVHS licensees. A drawback to contracting with the County is that if the City of Diamond Bar contracts with Los Angeles County, the 'facility to serve Diamond Bar will be the Baldwin Park facility. This location is approximately twelve (12) miles from Diamond Bar (City Hall ioeation), whereas, the current IVHS shelter is only five (5) miles away from Diamond Bar. Based on the above information, staff recommends that the City Council approve a `one-year contract at the current annual rate of $65,244 and through the public hearing process, adopt a new fee schedule as recommended by the 1VHS: If approved by the City Council, staff will schedule a public hearing on October 17, 2000 to present the proposed fee changes. Attachments: A. NHS Agreement" B. Letter from IVHS Executive Director, William C. Harford C. Proposed Fee Schedule D. Impact of Senate Bill 1785 E. Los Angeles County Cost Estimates F. 00-01 Animal Control Cost Breakdown Prepared by: Teresa Arevalo Senior Administrative Assistant E.:teresa a: a imal'control report AGREEMENT THIS AGREEMENT is made and entered into in duplicate at Diamond Bar, California, this day of , 2000, by and between the CITY OF DIAMOND BAR, a municipal corporation (hereinafter referred to as the "City"), and THE HUMANE SOCIETY OF POMONA VALLEY, INC., a corporation (hereinafter referred to as "Humane' Society"). WITNESSETH: WHEREAS, the purpose of entering into this agreement is to relieve the City of the burden and expense of providing public pound and animal control services and to contract for said services with the Humane Society under the terms and conditions as provided herein; NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions contained herein, it is mutually agreed by and between the parties, as follows: L. ANIMAL SERVICES: - The Humane Society does hereby agree that it will provide the City with public pound services, which services include all humane animal work of picking up and disposing of stray, unwanted, injured or dead animals; enforcement of "leash laws", if any; provide'and furnish animal ambulance service; maintain and operate an adequate, suitable and sanitary animal shelter (public pound) in compliance with the minimum standards prescribed by the State of California and the governing Health Department; to treat the animals and operate the shelter at all times in a wholesome and humane manner; and collect all dog and kennel licenses and impounding fees in cooperation with the City. The Humane Society agrees to render all other public pound services as provided in and by all pertinent City ordinances when not inconsistent with the terms of this agreement. 2. FEES FOR SERVICES: The Humane Society agrees to promptly, efficiently, properly and completely perform and discharge, at its own cost and expense, all such public pound and animal services provided herein. In consideration therefor, the Humane Society shall be entitled to the consideration specified in Paragraph 8 of this agreement. 3. AVAILABILITY OF SERVICE: The Humane Society agrees to maintain public poundd services at all times when circumstances require and to keep its shelter headquarters open during regular hours to the general public, except Sundays and holidays; that such services shall be available at the request of the City or any resident thereof. 4. NON-DISCRIMINATION POLICY: The Humane Society is an equal opportunity employer and, subject to, and in compliance with, applicable state and federal laws, the Humane Society does not discriminate on the basis of race, color, marital status, religion, sex, national origin, ancestry or physical handicap. 5. COOPERATION WITH HEALTH DEPARTMENTS: The Humane Society agrees to cooperate with the Health Departments of the State of California'and the governing county in all matters pertaining to rabies and animal quarantine, and will conduct an animal inoculation program when required. 6. HOLD HARMLESS: The Humane Society herewith agrees to indemnify, protect, defend and hold the City harmless from any claims, damage or liability arising out of the Humane Society's operations as a result of this agreement, and to keep in force at all times a comprehensive broad form general public liability insurance policy against all claims and liabilities for personal injury, bodily injury, death or property damage liability in the sum of at least $5,000,000 (five million dollars) naming the City, its City Council, employees and agents as co4nsureds with the Humane Society. Humane Society further agrees to keep in effect at all times a policy of workers' compensation insurance covering all employees of the Society. 7. FURNISHING INFORMATION, BOOKS AND RECORDS: The Humane Society, upon request of the City, agrees to furnish the City at any time with a complete list of its officers, directors and employees. The Humane Society shall maintain books and records of its services rendered to the City, and moneys expended and received in its ' transactions with the City, and shall make said books available for inspection at its offices at reasonable times at City's, request and at City's cost. -2 Attachment C (Proposed Fee Schedule) Inland Valley Humane Society & S.P.C.A. City of Diamond Bar Proposed Fee Schedule 2000 Do-g-LicenseFees Current Proposed Unaltered = 1 Year 20.00 25.00 Unaltered - 2 Year; 40.00 50.00 Altered --- 1 Year 10.00 no change Altered --- 2 Year 20.00 no change Senior Citizen Unaltered -1 Year 20.00 25.00 Senior Citizen Unaltered - 2 Year 40.00 50.00 Senior Citizen Altered - 1 Year 5.00 no change Senior Citizen Altered - 2 Year 10.00 no change Late Application Fee for New Dog License 10.00 25.00 Late Renewal of Dog License 10.00 25.00 Impound Fees Dog - 1st Offense 20.00 no change 2nd Offense = 40.00 no change 3rd Offense Cat 60.00 no change Small Animals - i.e. Rabbits, Chickens, Ducks, Turtles 5.00 5.00 no change no change Medium Animals - i -e. Goats, Sheep, Calves, 15.00 no change Large Animals - i.e. Horses, Ponies, Donkeys, Cows, Pigs 25.00 no change (trailer needed) Food' & Care per day Dog Cat 4.00 7.00 Biter Animals (dogs/cats) 3.00 7.00 Small Animals 3.50' 10.04 Medium Animals 2.00 5.00 Large Animals 4:00 7.00 ♦ alt biter animals quarantined at the shelter: food 5.00 10.00 and care charged at a higher rate. Other Fees Trailer Fee Service Fee on Large Animals requiring extra manpower 25.00 50,00 no change Special Animal Permit no change Owner Release Fee - Per Animal 50.00 10.00 no change 20.00 - Per Litter 15,00 25.00 - Per on Site Pick-up -live animal 20.00 30.00 Fee for service - Carcass removal - owners 20.00 no change Justification: Extended period of time an owner's animal must be held at the shelter as per SB 1785 Hayden Bill - (three days) 04/1?lOOep Attachment D (Impact of SB1785) THE IMPACT OF SENATE BILL 1785 (THE HAYDEN BILL) ON THE OPERATION OF THE INLAND VALLEY HUMANE SOCIETY AND SPCA The Hayden Bill has affected every animal shelter in,the state since its inception in July of 1999. Holding periods for cats and dogs, hours of operation, medical service requirements, maintaining of feralcatsand euthanasia policies have all changed with the enactment of this legislation. Holding Period Changes New Old Stray dog and eats 5 days 3 days Feral cats 4 days p Owner release dog or cat 3 days p Other stray animals 5 days - p (Rabbits, guinea pigs etc.) Hours of Operation The new law requiredall animal shelters that were in a county with a human population of over 100,000 to hold stray dogs and cats 6 days unless the shelter was open to the public on a weekend day and one night during the week. The Inland Valley Humane Society and SPCA has always been open to the public on Saturdays. The Society is now open to the public on Wednesdays until 7z00pm. This change has been implemented with the use of overtime dollars. Medical Services _ In May of 1998 the Humane Society hired is first ever staff Veterinarian. The duties of this Position includes but is not limited to the spaying or neutering of all adopted pets before adoption, providing emergency services to sick or injured stray animals from all, contract cities, and supervising' the healthcare of all animals housed at the shelter. The Hayden Bill states that our shelter shall provide all animals with necessary and prompt veterinary care. Requiring; treatment for every sick or injured animal that has a treatable illness.' This has caused our Vet Service Department to increase the number of animals they place on costly medication. ii a pp O r C & m :� 1 O W h. 8m : a Davin OgQo�. CN V)ccC4C �NOd' Ol •- a NL N O a x Iq to Go NNe m Lt V- z QJ a ul 8 ►° c Ln CD m - W o _c 0000 0888- •� N C'RRV 0 O-enQ,'' r CIn(tomLn r M 0U3r-O to N ... C V iJ t3 !� G. 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M LL) M M LA � V T O V CO M� N LO M 1q,�LO V- N C0 tON Z 0 U Q c0 C14 c ti C) CO (0 N N O 0 , � O M w O ti Y�- to rn co to I-- ti M rn rn. v co cn W� CD CNN LO CDW co p O o 0 0 O Ca Q 0 O LO 0O Lo Lo CD, CA O c0 a 0 ui v Cc i M m Cw0 c� to 06 LO CO V) a' a z 0 U L) co O Q 0 p� . oo �_ Z ) � La, m Ln Ln Cal ti o r C3 E CN Z Q CD m m O CD NLO L m c L -CL r- E _vE m co 2_c to c Q O o E 0 E ° N c� U; U 3 ca i -- a (UMapxvaag 4SOD SHAI) m a In 3 �:uaui�o���TI Q a CITY OF DIAMOND BAR - AGENDA REPORT AGENDA NO.J' TO: Terrence L. Belanger, City Manager MEETING DATE: October 17, 2000 REPORT DATE: October 12 2000 FROM: Bob Rose, Community Services Director TITLE: Consideration for Proposed 4th of July Concert and Fireworks Show SUMMARY: For the past 10 years, the Summer Concerts in the Park series has been held on Wednesday evenings,from 6:30 p.m. to 8:00 p.m. at Sycamore Canyon Park. In the summer of 2001, the 4th of July falls on a Wednesday evening. When this circumstance was presented to the Parks and Recreation Commission at its August 24, 2000 meeting, the Commission recommended that'a fireworks show be added to the patriotic concert on July 4th. The Commission further recommendedthat if a fireworks show is not a part of the 4th of July concert, then there should be no concert on that date. This issue was; presented to the City Council at its joint study session with the Parks and Recreation Commission on September 5, 2000 and the City Council ;directed staff to agendize this matter for a future Council meeting. Continued on Page 2. RECOMMENDED ACTION Staff recommends that the City Council review the options presented for the July 4, 2001 Summer Concert date and direct staff as deemed appropriate, LIST OF ATTACHMENTS: X Staff Report _ Public Hearing Notification Ord nlanlce(s) X OtherMinutes of August City Clerk's office) OSpecifications g 24, 2000 Parks and Agreement(s) Recreation Commission Meeting. Minutes of September 5, 2000, Joint Meeting of Parks and Recreation Commission' and the City Council. EXTERNAL DISTRIBUTION: SUBMITTAL CHECKLIST: 1'. Has the resolution, ordinance or agreement been reviewed by City Attorney? Yes X No 2. Does the report require a majority vote? X Yes _ No 3. Has environmental impact been assessed? Yes X No 4. Has the report been reviewed by a Commission? X Yes _ No What Commission? Parks and Recreation Commission 5. Are other departments affected by the report? Yes X No Report discussed with the following affected departments: N/A REVIEWED BY: Terrence L. Belanger James DeSt fano 0 City Manager Deputy City anager Community Services Director I Continued from Page 1 - Summary Staff has developed two options fora 4th of July patriotic concert. Option I is for an evening concert from 6:30p.m. to 9:00 p.m., followed with a fireworks show. Cost for Option I is about $20,000, Option II is for an afternoon concert from 1:00 p.m. fo 4:00 p.m. with no fireworks show. Cost for -Option 11 is about $10,000. There is also a third option, which is to not have a concert on July 4, 2001, but instead have the patriotic concert on Wednesday, June 27, 2001. CITY COUNCIL REPORT MEETING DATE: October 17, 2000 TO: Honorable Mayor and Members of the City Council FROM: Terrence L. Belanger, City Manager SUBJECT: Consideration for Proposed 4th of July Concert and Fireworks Show Issue Statement Shall the City plan and conduct a patriotic concert and fireworks show on July 4, 2001 as a part of its Summer Concerts in the Park Series? Recommendation Staff recommends that the City Council review the options presented for the July 4, 2001 Summer Concert date and direct staff as deemed appropriate. Financial Summary Option I Fireworks Show and Evening Concert - $20,000 Option II Afternoon Concert with no Fireworks Show - $10,000 Option III No Event — Savings of about $2,000 in "FY 2001/02 Budget. (There would be only nine summer concerts rather than the usual 10) Background Each year, the City of Diamond Bar conducts a patriotic concert as a part of the Summer Concerts in the Park Series. In the summer of 2001, the date that the patriotic concert would normally be held is July 4, 2001, Independence Day. The Parks and Recreation Commission reviewed this circumstance at its August 24th meeting. The Commission has recommended that if a concert is to be held on July 4, 2001, then a fireworks show should follow the concert. The Commission further recommended that if a fireworks show is not a part; of the concert, then there should be no concert on that date either. This issue was presented to the City Council at its joint study session with the Parks and Recreation Commission on September 5, 2000 and the City Council directed staff to agendize this matter for a future Council meeting. Discussion The annual budget for the entire series of 10 concerts is normally $20,000. In order to conduct the concert on July 4, 2001 as recommended by the Parks and Recreation Commission, the cost will be approximately $20,000 for this single concert. ` Preliminary budget is as follows: Option i - Fireworks Show/ Evening Concert Fireworks $8,500 *Entertainment $2,500 Sound System $2,000 Traffic Control Equipment $1,000 Sheriff's Deputies $3,000 Stage Lights $ 500 Insurance $ 750 Fencing Around Fireworks $ 500 Decorations IM ESTIMATEDTOTAL $19,750 Option II - No Fireworks Show/ Afternoon Concert An option to the fireworks show and evening concert is to hold an afternoon concert from 1:00 p.m. - 4:00 p.m. with two different bands performing and no fireworks show. Cost for this option is estimated as follows: *Entertainment $3,500 Sound System $2;000 Sheriff's Deputies $1,500 Decorations $1,000 Canopies 1110 ESTIMATED TOTAL $9,750 Option ill - No Concert on July 4, 2001 Both Options I and Il are very expensive when compared to a regular concert that costs about $2,000. The additional cost is primarily due to the high rates charged by vendors on a holiday like the 4th of July. Sheriff's costs varybecause of the expected difference in crowd size for the different options. A fireworks show is sure to draw a large crowd to the vicinity of Sycamore Canyon Park, plus a street closure will have to occur on Golden Springs while the fireworks show is in process. If no concert is held on July 4th, then it is recommended that the patriotic concert be held on June 27, 2001 (with no fireworks.) 'Note — Entertainment listed in Options I & 11 would include 1-112 to 2 hours of a professional band and 45 minutes to one hour of the 80 member Pacific Crest Drum and Bugle Corps. Prepared by: Bob Rose Community Services Director CITY OF DIAMOND BAR CITY COUNCIL STUDY, SESSION - JOINT MEETING WITH THE PARKS & RECREATION COMMISSION SEPTEMBER 5, 2000 1. CITY COUNCIL CALL TO ORDER:Mayor O'Connor called the study session to order at 5:05 p.m. in the South Coast Air Quality Management District Room CC 8, 21865 E. Copley Drive, Diamond Bar, California. 2. ROLL CALL: Council Members Chang, Huff,, Mayor Pro <Tern Ansari' and Mayor O'Connor. C/Herrera was excused. PARKS & REC COMMISSION: Commissioners St. Amant, Torres, VC/Anis, Chair/Finnerty. Commissioner Hull was, excused. Also present were: Terrence L. Belanger, City Manager; Craig Steele, Assistant City Attorney; David Doyle, Deputy City Manager, David Liu, Public Works Director; Bob Rose, Community Services Director; Linda Magnuson, Finance Director; Lynda Burgess, City Clerk; Teresa Arevalo, Sr. Administrative Assistant; Debbie Gonzales, Administrative Secretary, and Marsha Roa, ,Community Services Assistant. 3. GENERAL DISCUSSION (Matters of concern): 1. Summer Concerts - 2001 - Plans for Wednesday, July 4, 2001. PR/Chair/Finnerty said that because the concert occurs on the July 4 date, the Commission thought that it could be a large affair or that it could be canceled altogether. The cost of a band will be greater on the 4t' of July. If the concert proceeds, the Commission would like to add a fireworks display following the concert. The Commission would like to know if the Council wishes to spend the dollars to put on such an event. Responding to M/O'Connor, CSD/Rose stated that the .cost of the band would be approximately $4,000; the cost of a sound system about $4,000, traffic control about $4,000 and a 20 -minute fireworks show would cost>a minimum of $8,500, for a total minimum cost for the night of about $20,000. Chair/Finnerty indicated that the Commission proposes to hold the event at Sycamore Park with the fireworks on the sidewalk (similar to the Millennium Party) with Golden Springs Dr. to be shutdown for a period of time necessary to accommodate the show without creating a fire hazard. ` In response to M/O'Connor, CSD/Rose stated that the entire summer concert series costs about $20,000. Under usual circumstances, a band is $700 to $800; sound`system $500, and staffing $200. C/Huff'said he was not wild about doing a $20,000 blowout. He would like to have patriotic music but did not believe fireworks are necessary as it sends the wrong message to kids. It is okay on New Years Eve when it is not so dry. He believed people would come whether the City provides fireworks or SEPTEMBER 5, 2000 PAGE 2STUDY SESSION .�._ AUGUST 24; 2000 PAGE 5 PARKS.& REC COMMISSION 5. Roller Hocke ourt Availab' " t. (St. t) 6. Locatio or City Bi ay Celebra n (Hull) 7. PoPark 4 Chamber of ommerce : equest for tended Ligh sage at Pete n Park. CSD/R e stated th the Diamo ` ar Chamber Commerce wil hosting their asino Nigh t Peterso ark on; Sa y, April 28, 2 1. The event i cheduled to be ` nducted fro 6:00 p. until 10:30 .m. The Ch amb is requesting t t the ball field ' hts rem' 'n until 1 0 p.m. on turday, April , 2001. Staff commends that a Parks nd Recread Commiss' recommend a roval to the C' Council the e nded'use f the ball f' d lights at terson Park on turday, April , 2001 until 11: C/Ams mo d C/St. Arrant Bonded to rec end that the ty Counc' approv e extended u of the ball field 'ghts at Peterso ark on Sat" , April 28 ' O1 until 1.30 p.m. W' out objection, th motion was s , rdered. 4.3 Concerts in the Park - Summer, 2001. CSD/Rose reported that the summer concerts in the park is scheduled to be held on Wednesday evenings for 10 weeks during the summer of 2001. This schedule will normally' include Wednesday, July 4 as a regular concert date. Because this date is a holiday, it needs' to be determined if a concert will be held on July 4, 2001. C/Hull moved, C/St. Amant seconded, to recommend to the City Council that a 4h of July Concert with music appropriate to the holiday be held at Sycamore Canyon Park and that a pyrotechnics display immediately follow the concert. Without objection, the motion was so ordered. RS/Olivas reported that staff is waiting to hear back from the Long Beach Junior Concert Band regarding their availability for the 4t' of July. Chair/Finnerty said she likes the Long Beach Junior Concert Band but she would prefer a more forceful group. AUGUST 24, 2000 PAGE 6 PARKS & REC COMMISSION RS/Olivas suggested a swing group that would include patriotic music. He assured the Commission that he would arrange for an excellent patriotic music group. Chair/Finnerty concurred with RS/Olivas that the New Years Eve group was very well received: 4.4 Future C.I. Project Schedule. CSD/R e stated that the Park aster Plan includes a 3 year sche le of poten 'al CIP. projeto improve the parks nDiamond Bar. The omtnission r` iews this s edule on ` a re lar basis to ensure th the most urgent needs f the comm ity are incl ded on this s edule. The City Coun ' recently adopted its als'and'object' es for the 00/01 Fiscal ear. The City Counci s goals and objective include some rojects tha are not on the Parks Master PIan sch ule of improvements, including the c struction o more basketball courtsat mini parks picnic shelters at Pant ra Park and th developme of a pooch park. Staff recommen that the Commissio review the Ci Council's als and objectives related to Park and Recreation and i corporate them nto the Par Master Plan C.I. project sched a and recommend ad tion of the revi ed schedule. Chair/Fi erty said she believes a picnic shelters t Summitridg ii ark could be ehmi ated becaus of the pending Co unity/Civic Cent . C/S . Amant suggested at the following ee sites could a considered for 'ni parks: 1 0 S. Diamond Boulevard (sm piece of land ext to a creek b'tween the ondominiums an a apartments on th east side of D.B. oulevard); Clear eek Canyon `Drive between eghorn Drive and nner Ridge Roa across from the c ndominiums; corner of Go rush Drive and Di nd Bar Boulevard C/Hull d he likes the idea the basketball co s and he woul ike to have mo info tion on the picnic she ers and pooch park. C ir/Finnerty summariz d that the Commissi believes that is a good idea t start oving forward with th asketball courts. The icnic shelter at antera Park is`a g d idea and a pooch park sha a considered further i to the future. 5. ANNOUNCE M S: C/Hull apolo ' ed for missing the last eeting. He vided notes on is walk through Peterson Par to the Chairman and hi notes are at ho e. He complete a walk through of KYA �5. 1 REDEVELOPMENT AGENCY OF THE CITY OF DIAMOND BAR 64P REGULAR MEETING OF THE BOARD OF DIRECTORS OCTOBER 3, 2000 1. CALL TO ORDER: Chairman Huff u f called the meeting to order at 8:33 p.m. in the South Coast Air Quality Management District Auditorium, 21865 E. Copley Drive, Diamond Bar, California. ROLL CALL: Agency Members Ansari, Herrera, O'Connor, Vice Chairman Chang and Chairman Huff. Also present were: Terrence Belanger, Executive Director; Mike ;Jenkins, Agency Attorney; David Doyle, Deputy City Manager; James DeStefano, Deputy City Manager; David Liu, Director of Public Works; Bob Rose, Community Services Director; Mike Nelson, Communications and Marketing Director, and Lynda Burgess, Agency Secretary. 2. PUBLIC COMMENTS: None Offered. 3. CONSENT CALENDAR: AM/Ansari moved, AM/Herrera seconded, to approve Consent Calendar as presented. Motion carried by the following Roll Call vote: AYES: AGENCY MEMBERS: Ansari, Herrera, O'Connor, VC/Chang, Chair/Huff NOES: AGENCY MEMBERS: None ABSENT: AGENCY MEMBERS: None 3.1 APPROVED MINUTES - Regular Meeting of September 19, 2000 - As submitted. 4. PUBLIC HEARINGS: None 5. OLD BUSINESS: None 6. NEW BUSINESS: None 7. AGENCY MEMBER COMMENTS: ADJOURNMENT: There being no further business to conduct, Chair/Huff adjourned the meeting at 9;56 p.m. LYNDA BURGESS, Agency Secretary ATTEST: Robert S. Huff, Chairman DIAMOND RAR REUEVELiPMENT AGEtdCY Pltw DATE.* 10/12/2000.14':43:03 ` !3G4#ER REGISTER PAGE., 1 WE THRUy 1011712000 PREPAID FUtdD15E,T—kC-FROJJECT—ACCT PO # INVOICE DESERIFTIONAMOU T GATE CHECK LAW �. INC _. 1LINSCOTT yG�RE�ENSFF"t•� til07l 0-4641�2—R ir*-46•'ti.? �ry A €; T r' ry ! p�+� Ir Pole Th7-, €RPF ti�—G/SPRNGS�Gii4 Nll - r, 405.92 TOTAL PREF-AIDS - ,00 TOTAL c,DUCH P. 4059.K - TOTAL DUE VENDOR 405.9 LL5�105 - RD{��U6107110-4402,0ii0318 Grpt 70.00 6107.11s 44020-- S;SC 16 LGL SVCS - RDA ;AUG 00 3e5. CK! 6103110-44020-- LEG SvCS - RL, DULY % 35.01; TOTAL PREPAIOS ,{a� TOTAL %UCPERS 49 , bid{ TOTAL UUE VEf DOR 49D. C REPORT TOTALF�'�PAIDS {� REPORT TOTAL VOUCHERS REPM..T TOT""_ 895.92 DIAMOND BAR REDEVELOPMENT AGENCY AGENDA REPORT AGENDA NO.rft5,3 T0: Terrence L. Belanger, Executive Director MEETING DATE: October 03, 2000 REPORT DATE: September 29, 2000 FROM: Linda G. Magnuson; Finance Director TITLE: Treasurer's Report –August 31, 2000 SUMMARY: Submitted for the Redevelopment Agency Board's review and approval is the Treasurer's -Statement for the month of August 2000. RECOMMENDATION: Review and approve. LIST OF ATTACHMENTS: X Staff Report _'! Public Hearing Notification _ Resolution(s) Bid Specification (on file in City Clerk's office) Ordinance(s) _ Other: _ Agreement(s) SUBMITTAL CHECKLIST: 1. Has the resolution, ordinance or agreement been reviewed Yes No by the City Attorney? 2. Does the report require a majority vote? Yes No 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 following affected, departments:' REVIEWED BY REVIEWED BY: DEPARTMENT HEAD: q� "o Liao, 12,1a, TerreInce L. Belanger . David Doyle Linda G. Magnuson Executive Director Deputy City Manager Finance Director. DIAMOND BAR REDEVELOPMENT AGENCY REPORT AGENDA NO. MEETING DATE: October 03, 2000 TO: Chairman and Members of the Board FROM: Terrence L. Belanger, Executive Director SUBJECT: Treasurer's Statement'—August 31, 2000 ISSUE STATEMENT: Per Agency policy, the Finance Department presents the monthly Treasurer's Statement for the Redevelopment Agency Board's review and approval RECOMMENDATION: Approve the August 2000 Treasurer's Statement: FINANCIAL SUMMARY: No fiscal impact. BACKGROUND: Submitted for the Board's review and approval is the Treasurer's Statement for the month of August 2000. This statement shows the cash balances for the Redevelopment Agency, with a breakdown of bank account balances, investment account balances and the effectiveyield earned from investments. PREPARED BY: Linda G. Magnuson - DIAMOND BAR REDEVELOPMENT` AGENCY TREASURER'S MONTHLY CASH STATEMENT August 31, 2000 BEGIId�IG TRANSFERS i ENDIRG= BALANCE_ REGEiPTS DiSBiJtzS M�,Nrs, IN +OUT), BALAKI E REDEVELOPMENT AGENCY CIP FD $1,208,200.42 $9,641.79 $4,644.25 $1,213,197.96 LOW & MOD INCOME HOUSING FD - REDEVELOPMENT DEBT SVC FD - - TOTALS $1,208,200.42 $9,641.79 $4,644.25 $0.00 $1,213,197.96 SUMMARY OF CASH: DEMAND DEPOSITS: GENERAL ACCOUNT $167,588.83 TOTAL DEMAND DEPOSITS $167,588.83 INVESTMENTS, TIME CERTIFICATES 1045,609.13 LOCAL AGENCY INVESTMENT FD 0.00 TOTAL INVESTMENTS $1,045,609.13 TOTAL CASH $1,213,197.96 Note; The Redevelopment Agency approved a development and disposition agreement with "Triple T Diamond Gateway, LLC This agreement requires the Agency to invest $983,040.50 in a Time Certificate of Deposlt. The agreement provides that the developer guarantee the current LAIF investment yeild. The certificate of deposit has increased due to the interest earned being reinvested into the account, L.A.LF - Effective Yield for August 2000 6.505 Certificate of Deposit Yield (11/] 1/99-05/10/00, 4.550% Terrence L. Belanger, Treasurer