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Home My WebLink About08/19/2008Tuesday, August 19, 2008 5:45 p.m. — Closed Session CC -8 6:30 p.m. — Regular Meeting The Government Center South Coast Air Quality Management District/ Main Auditorium 21865 Copley Drive Diamond Bar, CA 91765 Mayor Jack Tanaka Mayor Pro Tem Ron Everett Council Member Wen Chang Council Member Carol Herrera Council Member Steve Tye City Manager James DeStefano City Attorney Michael Jenkins City Clerk Tommye Cribbins Copies of staff reports or other written documentation relating to agenda items are on file in the Office of the City Clerk, and are available for public inspection. If you have questions regarding an agenda item, please contact the City Clerk at (909) 839-7010 during regular business hours. In an effort to comply with the requirements of Title 11 of the Americans with Disabilities Act of 1990, the City of Diamond Bar requires that any person in need of any type of special equipment, assistance or accommodation(s) in order to communicate at a City public meeting, must inform the City Clerk a minimum of 72 hours prior to the scheduled meeting. Please refrain from smoking, eating or drinking in the Council Chambers. The City of'Diamond Bar uses recycled paper and encourages you to do the .came. DIAMOND BAR CITY COUNCIL MEETING RULES Welcome to the meeting of the Diamond Bar City Council. Meetings of the Diamond Bar City Council are open to the public and are cablecast live on Channel 3. You are invited to attend and participate. PUBLIC INPUT Members of the public may address the Council on any item of business on the agenda during the time the item is taken up by the Council. In addition, members of the public may, during the Public Comment period address the Council on any Consent Calendar item or any matter not on the agenda and within the Council's subject matter jurisdiction. Persons wishing to speak should submit a speaker slip to the City Clerk. Any material to be submitted to the City Council at the meeting should be submitted through the City Clerk. Speakers are limited to five minutes per agenda item, unless the Mayor determines otherwise. The Mayor may adjust this time limit depending on the number of people wishing to speak, the complexity of the matter, the length of the agenda, the hour and any other relevant consideration. Speakers may address the Council only once on an agenda item, except during public hearings, when the applicant/appellant may be afforded a rebuttal. Public comments must be directed to the City Council. Behavior that disrupts the orderly conduct of the meeting may result in the speaker being removed from the Council chambers. INFORMATION RELATING TO AGENDAS AND ACTIONS OF THE COUNCIL Agendas for regular City Council meetings available 72 hours prior to the meeting and are posted in the City's regular posting locations, on DBTV Channel 3, and on the City's website at www.cityofdiamondbar.com. A full agenda packet is available for review during the meeting in the foyer just outside the Council chambers. The City Council may take action on any item listed on the agenda. ACCOMMODATIONS FOR THE DISABLED A cordless microphone is available for those persons with mobility impairments who cannot access the podium in order to make a public comment. Sign language interpretation is available by providing the City Clerk three business days' notice in advance of a meeting. Please telephone (909) 839-7000 between 7:30 a.m. and 5:30 p.m. Monday through Thursday and 7:30 a.m. to 4:30 p.m. on Fridays. HELPFUL PHONE NUMBERS Copies of agendas, rules of the Council, Cassette/Video tapes of meetings (909) 839-7010 Computer access to agendas: www,cityofdiamondbar.com General Information: (909) 839-7000 THIS MEETING IS BEING BROADCAST LIVE BY TIME -WARNER FOR AIRING ON CHANNEL 3, AS WELL AS BY STREAMING VIDEO OVER THE INTERNET AND BY REMAINING IN THE ROOM YOU ARE GIVING YOUR PERMISSION TO BE TELEVISED. THIS MEETING WILL BE RE -BROADCAST EVERY SATURDAY AT 9:00 A.M. AND EVERY TUESDAY AT 8:00 P.M. ON CHANNEL 3, AND IS ALSO AVAILABLE ON THE CITY WEB SITE AT WWW.CITYOFDIAMONDBAR.COM CITY OF DIAMOND BAR CITY COUNCIL AGENDA August 19, 2008 Next Resolution No. 2008-32 Next Ordinance No. 05 (2008) CLOSED SESSION: 5:45 p.m., Room CC -8 Public Comments on Closed Session Agenda ► Government Code Section 54956.9(c) — Initiation of Litigation — One Case. CALL TO ORDER: PLEDGE OF ALLEGIANCE: INVOCATION: ROLL CALL: APPROVAL OF AGENDA: 6:30 p.m. Mayor Pastor Randy Lanthripe, Church in the Valley Council Members Chang, Herrera, Tye, Mayor Pro Tem Everett, Mayor Tanaka Mayor 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 Introduction of Deputy Chief Mike Bryant — L.A. County Fire Department - East Region. 1.2 Proclaiming September 2008 as "L.A. County Fair Month". Written materials distributed to the City Council within 72 hours of the City Council meeting are available for public inspection immediately upon distribution in the City Clerk's Office at 21825 Copley Dr., Diamond Bar, California, during normal business hours. AUGUST 19, 2008 PAGE 2 NEW BUSINESS OF THE MONTH: 1.3 Presentation of Certificate Plaque to "Cherry on Top", as New Business of the Month, August, 2008. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: 3. PUBLIC COMMENTS: "Public Comments" is the time reserved on each regular meeting agenda to provide an opportunity for members of the public to directly address the Council on Consent Calendar items or matters of interest to the public that are not already scheduled for consideration on this agenda. Although the City Council values your comments, pursuant to the Brown Act, the Council generally cannot take any action on items not listed on the posted agenda. Please complete a Speaker's Card and give it to the City Clerk (completion of this form is voluntary). There is a five-minute maximum time limit when addressing the City Council. 4. RESPONSE TO PUBLIC 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 Heartbreaker (Pat Benatar Tribute) — August 20, 2008 — 6:30 — 8:00 p.m., Sycamore Canyon Park, 22930 Golden Spgs. Dr. (Last concert for the summer). 5.2 Movies Under the Stars — Bee Movie — August 20, 2008 - Immediately following Concerts in the Park, Sycamore Canyon Park, 22930 Golden Spgs. Dr. (Last Movie for the summer). 5.3 Forest Canyon Neighborhood Traffic Management Program Meeting — August 25, 2008 — 7:00 p.m., AQMD/Government Center,Room CC -6, 21865 Copley Dr. 5.4 Planning Commission Meeting — August 26, 2008 — 7:00 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 5.5 Parks and Recreation Commission Meeting — August 28, 2008 - 7:00 p.m., AQMD/Government Center Hearing Board Room, 21865 Copley Dr. 5.6 Labor Day Holiday — City Offices will be closed Monday, September 1, 2008 in observance of the Labor Day Holiday. Offices will reopen at 7:30 a.m., Tuesday, September 2, 2008. 5.7 City Council Meeting — September 2, 2008 — 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. AUGUST 19, 2008 PAGE 3 5.8 Diamond Bar Day at the Fair — Thursday, September 11, 2008 — Beginning at 8:30 a.m., tour of the L.A. County Fairgrounds; 9:00 a.m., Community Expo; 12:00 p.m., Lunch; 2:00 p.m., Horse Race; 4:30 p.m., Reception; and 5:30 p.m., Parade. 6. CONSENT CALENDAR: 6.1 City Council Minutes: (a) Study Session of August 5, 2008 — Approve as submitted. (b) Regular Meeting of August 5, 2008 — Approve as submitted. 6.2 Planning Commission Minutes — Regular Meeting of May 27, 2008 - Receive and file. 6.3 Ratification of Check Register — Ratification of Check Register dated July 31, 2008 through August 13, 2008 totaling $1,077,058.88. Requested by: Finance Department 6.4 Adopt Resolution No. 2008 -XX: Accepting the Grant of Easement for Operation and Maintenance of the Traffic Signal Located at the South West Corner of the Intersection of Diamond Bar Blvd./Sugarpine Ln. at the Main Entrance of Diamond Hills Plaza. Recommended Action: Adopt. Requested by: Public Works Department 6.5 Approval of Contract Amendment No. 3A with West Coast Arborists for City -Wide Tree Maintenance and Watering Services for FY 2007/08 Adding $3,300 to the Authorized Amount of $238,050 Resulting in a Total Not to Exceed Amount of $241,350. Recommended Action: Approve. Requested by: Community Services Department 6.6 Adopt Resolution No. 2008 -XX: Approving the Application for Grant Funds from the Recreational Trails Program Under the "Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users" for the Summitridge Park Southern Route Trail Project. Recommended Action: Adopt. Requested by: Community Services Department AUGUST 19, 2008 PAGE 4 6.7 Adopt Resolution No. 2008 -XX: Opposing Fiscally Irresponsible State Budget Decisions that would "Borrow" Local Government, Redevelopment and Transportation Funds. Recommended Action: Adopt. Requested by: City Manager 6.8 Adopt Resolution No. 2008 -XX: Amending the City's Personnel Rules and Regulations Effective September 1, 2008; and Rescinding Resolution No. 2006-39 in its Entirety. Recommended Action: Adopt. Requested by: Human Resources 7. PUBLIC HEARINGS: 7:00 p.m., or as soon thereafter as matters may be heard. 7.1 Adopt Resolution No. 2008 -XX: Amending the City's Conflict of Interest Code for Designated City Personnel and Rescinding Resolution No. 2006-50 in its Entirety. Recommended Action: Open the Public Hearing, Receive Testimony, Close the Public Hearing and Adopt. Requested by: City Clerk 7.2 Adopt Ordinance No. 04(A)-2008: Extending Ordinance No. 04(2008) Prohibiting Certain Group Residential Uses Inconsistent with Residential Zones and Providing Reasonable Accommodation Provisions for the Disabled Pursuant to Government Code Section 65658 and Declaring the Urgency Thereof. Recommended Action: Open the Public Hearing, Receive Testimony, Close the Public Hearing and Adopt. Requested by: Community Development Department 8. COUNCIL CONSIDERATION: None. RECESS TO PUBLIC FINANCING AUTHORITY MEETING 1. CALL TO ORDER: Chair Tye ROLL CALL: Authority Members Chang, Herrera, Tanaka VC/Everett, C/Tye AUGUST 19, 2008 PAGE 5 2. 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 Authority on Consent Calendar items or matters of interest to the public that are not already scheduled for consideration on this agenda. Although the Financing Authority values your comments, pursuant to the Brown Act, the Authority generally cannot take any action on items not listed on the posted agenda. Please complete a Speaker's Card and give it to the Authority Secretary (completion of this form is voluntary). There is a five-minute maximum time limit when addressing the Financing Authority. CONSENT CALENDAR: 3.1 Approval of Minutes - Regular Meeting April 15, 2008 —Approve as submitted. 3.2 Treasurer's Statement — April 1, 2008 through June 30, 2008. Recommended Action: Approve. Requested by: Finance Department 4. AUTHORITY MEMBER CONSIDERATION: 4.1 Award of Contract to De La Rosa and Company for Remarketing Services for the 2002 Public Financing Authority Variable Rate Lease Revenue Bonds. Recommended Action: Award. Requested by: Finance Department 5. AUTHORITY MEMBER COMMENTS: Items raised by individual Authority Members are for Authority discussion. Direction may be given at this meeting or the item may be scheduled for action at a future meeting. ADJOURN PUBLIC FINANCING AUTHORITY MEETING RECONVENE CITY COUNCIL MEETING: 9. COUNCIL SUB -COMMITTEE REPORTS/COUNCIL MEMBER COMMENTS: 10. ADJOURNMENT: Agenda No. 6.1(a) CITY OF DIAMOND BAR CITY COUNCIL STUDY SESSION AUGUST 5, 2008 DKO"AFT STUDY SESSION: M/Tanaka called the Study Session to order at 5:32 p.m. in Room CC -8 of the South Coast Air Quality Management District/Government Center, 21865 Copley Dr., Diamond Bar, CA. Present: Council Members Chang, Herrera, Tye, Mayor Pro Tem Everett and Mayor Tanaka. Staff Present: James DeStefano, City Manager; David Doyle, Assistant City Manager; Brad Wohlenberg, Assistant City Attorney; Bob Rose, Community Services Director; David Liu, Public Works Director; Linda Magnuson, Finance Director; Nancy Fong, Community Development Director; Greg Gubman, Planning Manager; Ken Desforges, IS Director; Ryan McLean, Asst. City Manager; Patrick Gallegos, Management Analyst; Kimberly Molina, Associate Engineer; and Tommye Cribbins, City Clerk. Also Present: John Douglas, Conexus ► DISCUSSION OF HOUSING ELEMENT CM/DeStefano gave a brief synopsis of the considerations before the City Council for adoption of the Housing Element. CDD/Fong pointed out the changes included in revised pages 3 and 4 to the Housing Element that have been provided. The purpose of tonight's Study Session is to give Council a chance to receive the information and ask questions. John Douglas with Conexus, made a Power Point presentation that included a brief overview of the Housing Element Document process; the explanation of key issues (how will D.B. deal with the growth allocation and how the City will comply with SB 2); spoke about the importance of certification and possible consequences of non -certification; and, the plan for moving forward toward certification. CDD/Fong referred the City Council to possible sites for affordable housing. She emphasized that Council is not being asked to make a decision this evening. She indicated there were three possible sites for affordable housing: A four -acre parcel, a 13 -acre parcel and a 1.25 -acre parcel. C/Herrera asked who owned the parcels and whether the parcels close to the churches were planned for church use or affordable housing. CDD/Fong stated that one of the properties may be owned by the church and is vacant property behind the church that is not currently being utilized. Staff is not saying the church would not be able to expand, rather that these locations could August 5, 2008 PAGE 2 CC STUDY SESSION be possible sites for affordable housing. If the church has plans for expansion staff would have to look at other sites. Staff has not contacted the property owners and has only looked at sites that may be available for further study and appropriate for high density housing. Mr. Douglas responding to C/Chang stated that the Housing Element ties affordability with density. The City has certain tools at its disposal to create affordable housing: zone the land and use Redevelopment Agency money. If the City were to rezone these or other sites, they would not have to be built as affordable housing. The City has to do what the State refers to as "encourage and facilitate affordable housing" by doing things it has the ability to do such as offering density bonus i.e. expediting processing, reducing permit fees, etc. Assuming the City moves forward on that basis, zoning would have to allow 30 - units per acre and would depend on a developer coming forward and agreeing to build the project under those rules. However, the requirement would be for the City to allow 30 -units per acre to satisfy the REMA requirements and Housing Element Law. 20 units is the highest density in the current zoning code. Cities place contingencies on property such as allowing 30 -units per acre and the developer can only get the 30 -units per acre if an affordable component is included in the budget. C/Tye asked how a City can tell a contractor what he can build and what he can charge for rents? Mr. Douglas stated that the short answer is State law says cities have to do this or open the door to legal challenge; and if the City goes down this path and identifies sites suitable for 30 units per acre other appropriate requirements and General Plan conditions such as those previously mentioned should apply. The State's intrusion has become greater and greater over the past five years. It would be pure speculation to second-guess the City Council's decisions and he can only talk about what he has seen happen in other jurisdictions. Mission Viejo is the poster child for housing law. State law says that new growth should be similar in characteristic to what the City has. Responding to Council Members, Mr. Douglas stated that census distribution differs from community to community and the need is based on the State's statistical formula as well as the County's median income with the distribution being city to city. On average, about 40% are in the lower category because lower is defined as up to 80% of the needy. The State forces cities toward the middle so that in a high income City the allocation of low income housing is bumped up whereas conversely, in a low income community, low income housing is dropped so that cities move toward the middle. Mr. Douglas then spoke about emergency shelters. The new law states that each jurisdiction has to accommodate its fair share of need for emergency shelters and if a jurisdiction does not have sufficient emergency shelter beds to accommodate its needs then some action is required applying the same logic as August 5, 2008 PAGE 3 CC STUDY SESSION fulfilling the housing needs. The law states that there are two ways jurisdictions can comply with the fair -share requirement: by identifying at least one zoning district in the city where shelters are allowed by right; and a multi -jurisdictional agreement that provides for one or more facilities to address the needs of all participants. The San Gabriel Valley COG has embarked on a study of homeless needs in an attempt to arrive at the entire valley's homeless needs through a fair - share process and come up with a plan for dealing with the needs in sync with the requirements of SB 2. Therefore, the Draft Housing Element proposes to state that there are no known homeless people in D.B. at this time and because no homeless people have been identified there is no need for shelter facilities. In his opinion, such language will not fly with the State because their intent is to coerce every City to take on these steps. The proposal is to send the document to Sacramento and await comments on the document in order to properly move forward. The City is continuing to cooperate with the COG and to continue in that process. CDD/Fong stated that COG plans to have its report available by December 2008. PUBLIC COMMENTS: None Offered. ADJOURNMENT: With no further business to discuss, M/Tanaka adjourned the Study Session at 6:28 p.m. TOMMYE CRIBBINS, City Clerk The foregoing minutes are hereby approved this day of JACK TANAKA, Mayor , 2008. Agenda No. 6.1(b) MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR AUGUST 5, 2008 STUDY SESSION: 5:32 p.m. — Room CC -8 DRA FT ► DISCUSSION OF GENERAL PLAN HOUSING ELEMENT CALL TO ORDER: Mayor Tanaka called the regular City Council meeting to order at 6:43 p.m. in The Government Center/SCAQMD Auditorium, 21865 Copley Dr., Diamond Bar, CA. PLEDGE OF ALLEGIANCE: INVOCATION: Church gave the invocation. ROLL CALL: Everett and Mayor Tanaka. C/Chang led the Pledge of Allegiance Associate Pastor Timothy Sherreitt, Evangelical Free Council Members Chang, Herrera, Tye, Mayor Pro Tem Staff Present: James DeStefano, City Manager; David Doyle, Assistant City Manager; Brad Wohlenberg, Assistant City Attorney; David Liu, Public Works Director; Ken Desfores, IS Director; Bob Rose, Community Services Director; Linda Magnuson, Finance Director; Nancy Fong, Community Development Director; Greg Gubman, Planning Manager; Ryan McLean, Assistant to the City Manager; Kimberly Molina, Associate Engineer; Patrick Gallegos, Management Analyst, Cecilia Arellano, Public Information Coordinator; and Tommye Cribbins, City Clerk. APPROVAL OF AGENDA: As Presented. 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 MPT/Everett proclaimed "National Night Out," read and presented the Proclamation to Lt. Maxey. BUSINESS OF THE MONTH: 1.2 M/Tanaka presented a City Tile to Madhu Papudesi, owner, Round Table Pizza, 1220 S. Diamond Bar Boulevard; Business of the Month for August 2008. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: CM/DeStefano asked Lt. Maxey to give an update on the residential burglaries that have occurred in the City. Lt. Maxey announced that several suspects had been arrested and charged with various offenses in connection with the recent rash of D.B. home burglaries. AUGUST 5, 2008 PAGE 2 CITY COUNCIL 3. PUBLIC COMMENTS: Audrey Hamilton, 1429 Copper Mountain Dr., and Trustee, Greater Los Angeles County Vector Control District representing D.B informed the Council and public that the West Nile Virus threat is on the increase. Twelve human cases have been reported in Los Angeles County and in her district alone there have been eight. West Nile Virus is preventable and can be treated. She cautioned individuals not to allow water to collect around their residences. If residents find dead birds or experience individual problems they should call 562-944-9656 for further information, assistance or supplies. Tom Ortiz thanked family, residents, staff and the City Council for the support he received when his wife passed away. He also requested that a Veteran who served in the Chinese Army during WW II be recognized during the annual Veteran's Day Event. Eileen Ansari said she wanted to set the record straight on the Dial -A -Ride Program and the use of Prop A funds. Prop A funds are used for several programs. Dial -A - Ride was never meant to be an all-out program for residents. She encouraged staff to research other "access services" and how individuals qualify as well as contacting hospitals in the area about any transportation services they may offer. She said she would like to have a better breakdown on the use of Prop A funds. She concurred that the Council had a fiscal responsibility with respect to the budget and would like to see a newsletter article about what services are available to the public. 4. RESPONSE TO PUBLIC COMMENTS: None Offered. 5. SCHEDULE OF FUTURE EVENTS: 5.1 Concerts in the Park— Cold Duck (70's Top 40)/National Night Out—August 6, 2008 — 6:30 to 8:00 p.m., Sycamore Canyon Park, 22930 Golden Springs Dr. 5.2 Movies Under the Stars — Shrek the Third — August 6, 2008 — Immediately following Concerts in the Park event, Sycamore Canyon Park, 22930 Golden Springs Dr. 5.3 Planning Commission Meeting — August 12, 2008 — 7:00 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 5.4 Palomino Drive Neighborhood Traffic Management Program Meeting — August 12, 2008 — 7:00 p.m., AQMD/Government Center, Room CC -6, 21865 Copley Dr. 5.5 Concerts in the Park— Upstream (Caribbean)—August 13, 2008-6:30 p.m. to 8:00 p.m., Sycamore Canyon Park, 22930 Golden Springs Dr. AUGUST 5, 2008 PAGE 3 CITY COUNCIL 5.6 Movies under the Stars - Daddy Day Camp - August 13, 2008 - Immediately following the Concerts in the Park event, Sycamore Canyon Park, 22930 Golden Springs Dr. 5.7 Traffic and Transportation Commission Meeting - August 14, 2008 - 7:00 p.m., AQMD/Government Center Hearing Board Room, 21865 Copley Dr. 5.8 Parks Master Plan Community Workshop - August 16, 2008 -10:00 a.m., Diamond Center Grand Ballroom, 1600 Grand Ave. 5.9 City Council Meeting - August 19, 2008 - 6:30 p.m., AOMD/Government Center Auditorium, 21865 Copley Dr. 5.10 Final 2008 Concerts in the Park - Heartbreaker (Pat Benatar Tribute) - August 20, 2008 - 6:30 to 8:00 p.m., Sycamore Canyon Park, 22930 Golden Springs Dr. 5.11 Final 2008 Movies under the Stars - Bee Movie - August 28, 2008 - Immediately following Concerts in the Park, Sycamore Canyon Park, 22930 Golden Springs Dr. 6. CONSENT CALENDAR: C/Chang asked to pull Item 6.6 and MPT/Everett asked for clarification on Item 6.7. Following the clarification C/Herrera moved, C/Chang seconded, to approve the Consent Calendarwith the exception of Item 6.6. Motion carried by the following Roll Call: AYES: COUNCIL MEMBERS: Chang, Herrera, Tye, MPT/Everett, M/Tanaka NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 6.1 CITY COUNCIL MINUTES - Regular Meeting of July 15, 2008 -Approved as Amended. 6.2 RECEIVED AND FILED PLANNING COMMISSION MINUTES: 6.2.1 Housing Element Workshop of May 27, 2008. 6.2.2 Regular Meeting of June 10, 2008. 6.3 RECEIVED AND FILED PARKS AND RECREATION COMMISSION MINUTES - Regular Meeting of June 26, 2008. 6.4 RATIFIED CHECK REGISTER dated July 10, 2008 through July 30, 2008 totaling $2,597,370.56. 6.5 APPROVED PRELIMINARY TREASURER'S STATEMENT - month of June 2008. AUGUST 5, 2008 PAGE 4 CITY COUNCIL 6.7 RECEIVED AND FILED STATUS REPORT ON INTERIM URGENCY ORDINANCE NO. 04(2008) PROHIBITING CERTAIN GROUP RESIDENTIAL USES INCONSISTENT WITH RESIDENTIAL ZONES AND PROVIDING REASONABLE ACCOMMODATION PROVISIONS FOR THE DISABLED PURSUANT TO GOVERNMENT CODE SECTION 65858(d). 6.8 RECEIVED AND FILED GENERAL PLAN STATUS REPORT FOR 2007 6.9 APPROVED AGREEMENT BETWEEN THE CITY AND THE TRUSTEES FOR THE FERN PL. CAUFFMAN TRUST FOR PURCHASE OF PROPERTY LOCATED AT THE SOUTHEAST CORNER OF WASHINGTON STREET AND LINCOLN AVENUE (APN 8719-101014,15 (PORTIONS) AND APPROPRIATED $380,000 FROM THE GENERAL FUND FOR DEVELOPMENT OF PUBLIC PARKS. 6.10 APPROVED CONTRACT AMENDMENT NO. 2 WITH LOCAL AGENCY ENGINEERING (LAE) ASSOCIATES, INC. IN THE AMOUNT OF $42,720 FOR AS -NEEDED ENGINEERING SERVICES. 6.11 APPROVED CONTINGENCIES FOR THE 2007-08 SLURRY SEAL PROGRAM DESIGN CONTRACT ($7,800) AND FOR THE 2008-09 PROGRAM SLURRY SEAL DESIGN CONTRACT ($8,200) WITH NORRIS- REPKE. MATTERS WITHDRAWN FROM CONSENT CALENDAR: 6.6 APPROVAL OF LEGISLATIVE SUBCOMMITTEE'S RECOMMENDATION TO ADOPT A CITYWIDE LEGISLATIVE PLATFORM. C/Chang stated that due to the Legislative Subcommittee not meeting on a regular basis, the recommended platform enables staff to respond immediately and not have to wait until the Subcommittee meets. C/Chang moved, C/Tye seconded to approve Item 6.6. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Herrera, Tye, MPT/Everett, M/Tanaka NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 7. PUBLIC HEARINGS: 7.1 ADOPT RESOLUTION NO. 2008-31: FINDING THE CITY OF DIAMOND BAR IN CONFORMANCE WITH THE CONGESTION MANAGEMENT PROGRAM (CMP) AND ADOPTING THE CMP LOCAL DEVELOPMENT REPORT IN ACCORDANCE WITH CALIFORNIA GOVERNMENT CODE SECTION 65089. AUGUST 5, 2008 PAGE 5 CITY COUNCIL CDD/Fong reported that adoption of this resolution is required in order for the City to receive State gas funds as well as, other State and Federal transportation monies. As part of the program, the City is required to implement a program to analyze the impacts of the local land use decisions along with the regional transportation system. As in the past with ongoing programs, the City has balanced new development with those programs such as transit program, use of the web page, online services, info to go and transportation capital improvements. As it has in past years, the City remains in compliance with the Congestion Management Program. Therefore, staff recommends adoption of Resolution No. 2008-31. M/Tanaka opened the Public Hearing. There was no one present who wished to speak on this matter. M/Tanaka closed the Public Hearing. C/Chang moved, C/Tye seconded, to adopt Resolution No. 2008-31. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Herrera, Tye, MPT/Everett, M/Tanaka NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 8. COUNCIL CONSIDERATION: 8.1 APPROVAL OF MODIFICATIONS TO THE DIAMOND RIDE (DIAL -A -CAB) PROGRAM. CM/DeStefano reminded Council that several decisions regarding the Dial -A - Ride program were made at its last meeting leaving two items remaining for discussion and consideration this evening. PWD/Liu reported that the Dial -A -Ride program was established by the City in 1995 to augment public transportation service options available to seniors 60 -years and older and persons with disabilities. The program was last reviewed in 2001. The rising costs to operate the program including fuel costs and a high increase in ridership led staff to review the program earlier this year. The review took into consideration data obtained from the ridership report and input from current users. Based on review, staff devised a re -focused program that successfully meets the needs of the majority of Dial -A -Ride participants, which by and large are additional trips to medical facilities. This program is one of several programs funded with limited Prop. A funds. Because of the limited funds the refocusing of the program which extends trips to medical facilities has prompted the re-establishment of the service response program for non-medical trips like AUGUST 5, 2008 PAGE 6 CITY COUNCIL those to shopping centers outside of the City PWD/Liu reiterated that some modifications had been approved by Council during the July 15 meeting. At the same meeting, Council directed staff to return with recommendations to address the allowed number of 30 trips per month as well as the "special trip" authorization process. In addition, Council requested updated information for May and June 2008, which is provided in the staff report. Staff proposes two recommendations with respect to the number of allowed trips per month: 1) Approve unlimited medical trips within the 20 -mile medical facilities boundary that will not be counted as part of the 30 -allowed trips per month; and 2) Grant 10 additional non-medical trips within the medical facilities boundary to qualified participants. Under the proposed modifications the fare within City limits will be 50 cents and $2.50 per mile outside of the City limits. The second modification is to eliminate the "special trip" requests. Previously, participants were required to contact the City, submit the required information and await a decision which placed staff in the position of approving or denying trips on an individual basis which would lead to claims of favoritism or unfairness. Furthermore, special trip requests have no real boundary, which created an environment that caused staff to make arbitrary medical determinations while exacting a high cost on the City. Staff believes that creation of a 20 -mile medical facilities boundary as well as, providing unlimited trips for medical purposes within this area is a generous expansion of the Diamond Ride program. Users will still have the ability to travel outside the 20 -mile medical facilities boundary by paying the $2.50 per mile rate once the rider exits the medical facilities boundary. Therefore, staff recommends eliminating the "special trip" requests from the program. PWD/Liu stated that in conclusion, staff believes that in conjunction with the other available transportation programs, users gain greater independence while meeting their transportation needs. Staff will review the Diamond Ride amended program and present a report in March 2009 on the impacts these modifications have made. C/Herrera said that earlier today she asked staff what other expenditures fell under Prop A funds. Council Members and residents were under the impression that there were only two categories for use of Prop A funds, the Diamond Ride Program and transit subsidy. There are, in fact, other great City programs for which these funds are being utilized. CM/DeStefano responded that the City receives its funding as a portion of the'/2 cent sales tax measure that was passed by Los Angeles County voters many years ago. D.B. receives a percentage of sales tax that is contributed to Los Angeles County by D.B. residents and the amount of money the City receives is based upon its population. The number changes each year based upon the amount of purchases and resulting sales tax. Former Council MemberAnsari talked about the beginnings of the program. Several AUGUST 5, 2008 PAGE 7 CITY COUNCIL years ago the revenue was in the range of about $760,000 overall. In the current year's budget adopted July 1, 2008 there is about $980,000 budgeted to be received from Prop A which is used for a number of different items including $400,000 for the Diamond Ride Program. Staff will need to evaluate that number at mid -year (February) when the City Council typically reviews its budget status and makes adjustments. Staff evaluates the Diamond Ride Program every mid -year. While $400,000 of the $980,000 anticipated Prop A Funds has been budgeted last year the City spent about $430,000 for the Diamond Ride Program. With the increase in gasoline prices and increased interest in use of the program staff anticipates that the program will need more than $400,000 this year. $300,000 is allocated toward transit subsidy; $227,000 is budgeted for overall operations and maintenance including personnel costs; $76,000 is allocated for excursions provided by the City's Community Services Department and about $10,000 is allocated toward the specialized Holiday shuttle that runs during the year-end holidays. The total expenditure for this year is about $1,013,000. There are reserves in the Prop A funds and from time to time those excess reserves are collected and put out into the marketplace for sale to cities that have extraordinarily extensive programs seeking additional resources. As an example, last fiscal year $500,000 of Prop A money was sold to the City of Commerce. The highest bid was 76 cents on the dollar so the City received $382,000 for use in other transit and transportation oriented projects. For example, as a result of the sale to another public agency, about $200,000 was used for neighborhood traffic mitigation; about $186,000 is being used for the SR57/60 solution and most recently about $30,000 was utilized for installation of traffic calming devices in the Prospectors Roadway area. C/Tye asked who benefited from the transit subsidy under the current $300,000 budget. CM/DeStefano stated that D.B. residents receive discounted passes for Metrolink and other mass transit services in the region. C/Tye asked if it was based on the number of individuals asking to use the program or was capped at $300,000. CM/DeStefano responded that the program was based on the number of individuals seeking the program and could increase if more individuals were to ride the bus. C/Tye said that these recommendations were geared toward limiting the Diamond Ride Program and that no other programs were being considered to be limited or cut back. CM/DeStefano said that in fact, the discussion has been about an expansion of the Prop A program with the most recent City Council decision to increase the radius for trips to 20 miles from City Hall at the reduced price. AUGUST 5, 2008 PAGE 8 CITY COUNCIL C/Tye said that the 10 -mile radius was eliminated which should offset the increase and make it work for everybody? CM/DeStefano stated that a million dollars is a lot of money but there is a limit on the amount of money that comes from the program and the City has to find ways to be frugal in the use of its money and at the same time honor the rules and regulations of the program in order to make sure that sufficient resources are available. Other sources of money would be the City's General Fund; however, the City has issues with the use of General Fund monies for the ongoing maintenance and operation of the City's Landscape and Lighting Districts. There is a somewhat finite amount of resources available to the City each year. M/Tanaka disagreed with the recommendation for approving unlimited medical trips within a 20 -mile radius because it may create an additional burden and the original 30 -trips per month would help the City stay within the program budget. He also disagreed with the 10 -additional trip recommendation because there are other transportation options. He agreed with recommendation three to eliminate the special trip request authorizations which would not eliminate a participant's ability to go beyond the boundary. Linda Bailer, 21242 Fountain Spgs Rd., said that C/Tye addressed her concerns about seniors having needs other than medical needs and if seniors are prohibited from using Dial -A -Ride they may as well take a regular cab. She felt however, that it should be offered to seniors at an affordable rate. She suggested the City offer affordable passes for other uses. Sharon Young, 1253 Porto Grande Dr., said she was present to speak in support of the 10 -mile non-medical option. She listened to comments of the last meeting and heard Council Members say they wanted a balanced program for citizens. These are "transportation" funds —they are not medical funds and they are not welfare funds. They are provided to augment and enhance transportation services for residents. The bulk of the testimony by residents seemed to be related to extreme medical concerns. Maybe the extremes have held the Council's attention and at the same time the Council says its wants a balanced program. Where is the balance for those individuals who are no longer getting full use of the program? Is non-medical frivolous? She said she was concerned because MPT/Everett spoke about not wanting individuals to take frivolous trips. She is a member of Dial -A - Ride. She is not indigent but she has fixed and limited resources and she does not have transportation. She is old and is therefore qualified to speak as an "old" D.B. person and she said she was speaking for the middle person. She compensates for not having transportation by walking. She rarely uses Dial -A -Ride within the City limits. She has and would like to continue using the 10 -mile service area. According to the City's Engineer, Diamond Bar Blvd. from one end to the other is 6.6 miles and it seems that it is pretty much the sum and AUGUST 5, 2008 PAGE 9 CITY COUNCIL substance of retail activity in the City. She said she could walk from her residence to Kmart, Ace Hardware and so on. The City is residential, not commercial. The commercial development has taken place outside of the City. She needs to go to Chino Hills or Walnut so a trip that might have cost her 50 cents before would now cost her $10. She asked the Council to seriously consider continuing the 10 -mile non-medical radius for individuals who have concerns for their personal needs. Robert Arciero stated that he is still concerned about the veterans getting medical assistance and wanted to know why it was not brought up during tonight's meeting. Debbie Obergon thanked the City for the program and continuing support and hoped the Council Members would consider staff's recommendation regarding unlimited medical trips. AI Rumpilla recommended that the City Council do awaywith the 30 one-way trips per month since the staff report indicates that only about 1 % of users ever exceed the trip maximum. This would also result in less paperwork for the yellow cab staff and would help individuals who really need the extra trips. He recommended that Council extend the 20 -mile distance for medical trips to a 45 or 50 -mile radius to take care of all special requests. He recommended that the 10 extra trips staff is recommending be offered to all physically handicapped residents and not just the legally blind. Finally, he recommended that Council reinstate the 10 -mile boundaries for non-medical trips at the regular price of $3.00 for one-way and $6.00 roundtrip. He also stated that ridership has declined by about 30 rides per week. Irene Stinson asked if the City or other agency funded the Dial -A -Ride program and why it was being cut back. She retired 20 years ago and although the City has grown beautifully, there are no shopping centers. She felt the program was not broken and did not need to be fixed. C/Chang reiterated that this is a good program that helps many residents and should be maintained as it currently exists. However, because of special needs for fewer people the 10 -mile radius was increased to a 20 -mile radius. Everything has a limit and someone has to pay for increased services. There has been a lot of discussion over the past few weeks and he would like to deliberate on the current information presented by staff. He does not believe that "limited" should be inserted in the document. He agrees with the 20 -mile medical facility boundary and did not believe there should be unlimited medical service. Some residents need special trips beyond 10 miles and need additional trips so he agrees with additional 10 non-medical trips within the 10 mile medical facilities boundary for those who qualify. Without increasing services the cost will increase due to the increase in oil prices and will likely result in a budget change and the City must be careful about its expenditures. He agreed with staffs recommendations except for AUGUST 5, 2008 PAGE 10 CITY COUNCIL the unlimited medical trips and preferred to limit it to10 trips. C/Tye said he would like for the City to re-establish a 10 -mile radius for the bulk of users. He said he was slightly uncomfortable with "limited" but felt the Council needed to accommodate individuals with the greatest need. It is frustrating to hear Mrs. Ansari, a proponent of the program in 1995, indicate she wants to set the record straight and completely ignore the changes that have taken place during the 13 years the program has been in effect. Considering the changed demographics, this program needs to change and that is what the Council is discussing — how does the City tweak the program to make changes that will accommodate individuals who are utilizing this program. The aging population requires different services than they required 13 years ago when this program was initially implemented. C/Tye said he does not shop at just one store and does not eat at just one restaurant. This discussion has moved to the extreme of considering only the medical necessity and extra outside -the -boundaries necessities. He would really like to seethe 10 -mile overlay for trips other than medical. How many individuals are already using other forms of transportation and looking to Dial -A -Ride as a supplemental program. He asked the Council not to overlook the possibility that because individuals exceed 30 trips and go outside the boundaries that they might actually have only medical necessities. To Ms. Young's point, he would not like to lose more users. The City is asking individuals to use the program and use it judiciously and to use the program to maintain some semblance of normalcy in their lives as things are taken away. He also has a problem with recommendation 2 making it available only to users that are legally blind and unable to operate a motor vehicle. What about individuals that for other reasons are unable to operate a motor vehicle. He felt the program could be fine-tuned within a reasonable budget and still be fiscally responsible. M/Tanaka felt the original program was an outstanding program as written and changes were made in response to individual needs. The program as initially written for medical and non-medical trips as well as, trips to the airport and Amtrak was an excellent program and he would like to see that reinstated as well as expand the non-medical trips outside of the City limits. If the program is being underutilized for those types of purposes perhaps it will not add a lot of cost to reinstate that portion of the program. In his opinion, non-medical trips are just as important as medical trips. He does not see trips to the grocery store and hairdresser as frivolous trips. The bulk of individuals use 30 trips or less a month because those individuals monitor themselves to make sure they use their allotted trips wisely. The comment he made at the last meeting referring to the Dial -A -Ride program as one of several means of transportation for residents holds true today. There are other transportation opportunities available to residents and should be explored by individuals seeking transportation. He asked that whatever changes are made to the program the City have a system for notifying residents about the changes so that residents are not surprised when the cab operator presents the bill to the user. AUGUST 5, 2008 PAGE 11 CITY COUNCIL MPT/Everett said he voted against the action at the last meeting for two reasons: 1) he did not want to defer a major component or two and would rather have the entire package to vote on and 2) he felt as has been stated that residents have developed a lifestyle based on expectations for the service boundary as originally called out — the 10 -mile boundary. He felt the 10 -mile boundary was an imperative component for the current term and if the City reviews the program on a six-month basis it might become clearthat this component is not quite right but should not result in a drastic change in the program. To the question about why the City Council is considering changing something that is not broken, the last fiscal year numbers provided by staff in the past couple of days, monthly costs have increased 25%. That's a significant increase and it will be impossible to continue at that pace with a usage strategy that has been in place for Diamond Ride. Additionally, everyone is responsible for looking at all alternatives and for some individuals Diamond Ride will be the primary and exclusive program for what he trusts are "thoughtful" reasons. Tonight the Council has discussed several options. Another option he discovered was that an HMO "Caremore" paid for transportation for the mate of an individual who was terminally ill. Individuals need to check out all options and keep this excellent program the best it can be. He wants to continue to develop the program as a supplemental program and he wants it to be fair for all seniors, all disabled and all other D.B. residents. The City may grow some of the subsidy programs to help individuals who are going to work in downtown Los Angeles for example, to give them some much needed assistance. He reiterated that he would like to have a full package to vote on. He supports the last element that there should be no exceptions left to staff's responsibility or discretion because that would be unfair. The Council should not have to define a system that has no exceptions that takes care of everything for everybody because it is irresponsible. He would prefer to go back to the base system with the 10 -mile service area and 30 -trips defined for all uses and let each person decide what is important and what is vital and critical to them. He hoped it was clear that he was against removing Amtrak and the airport. He would like a system with incentives such as, all trips that begin and end should not count. D.B. does not have all options and many people go outside the City for services and needs. He believed the boundary for medical should be extended to the 20 -mile radius. For non-medical services beyond the 10 -mile radius the user pays the going rate. He hopes that the Council can come to agreement tonight or at the next meeting. M/Tanaka proposed that the Council consider reinstating the original program, take out the "special trip" requests and extend the medical trip boundary to 20 miles. The original program was a great program. However, due to the increase in ridership and fuel costs the City could not continue to provide all services without compromise. At the same time, it would be very helpful to residents if the City increased the radius for medical services. At the same time the City has to consider non-medical trips and trips that are restricted to the City are confining so he would like the non-medical trips reinstated to the 10 -mile radius. AUGUST 5, 2008 PAGE 12 CITY COUNCIL C/Chang clarified M/Tanaka's proposal and said he felt the matter had been discussed too long because residents seem to be puzzled about what the Council is trying to do. The program was a good program and as he said he did not believe it needed to be fixed. He agreed with M/Tanaka that the City should go back to the original program and ask residents to be conservative and preserve their trips. He also agreed that the medical trip boundary should be extended to the 20 -mile radius and said he would second that motion. C/Herrera said it was difficult for Council to figure out the right solution for everyone. For users it is a matter of living within a budget and staying within a fixed income. It is the same thing for a City. There are 59,000 citizens in D.B. that have to be considered. The City is trying to make the best decisions for use of a certain amount of dollars that have to be apportioned to serve all taxpayers. She agreed with C/Tye that instead of special requests the medical boundary should be extended to a 50 -mile radius. She liked staff's recommendations although she felt item #2 should not be limited to "visually impaired" but should be extended to anyone who qualifies for a blue handicapped sticker. MPT/Everett clarified the motion that there would be no exceptions and that users would pay the going rate beyond the 10 -mile service boundary and the 20 -mile medical boundary. M/Tanaka concurred. C/Tye stated that he has no idea why the Council would want to go back to where it started because the same fiscal concerns and constraints are still in place and it was his understanding that the Council was attempting to fine- tune the program. He is absolutely not a proponent of adding back trips to the airport or Amtrak. He felt it was unfair to staff because staff implemented what the Council told them to implement immediately. Council should have said "let us get this right and tweak this as much as we can and then implement the changes. And by the way, we know who the 1300 plus cardholders are and let's notify them but let's notify them at once, not "piecemeal." He believed the program could be fine tuned. He recommended replacing the 10 -mile overlay and say that if individuals use the Dial -A -Ride in D.B. it does not count against the 30 one-way trips which would help conserve the 30 one-way trips. One of his previous recommendations was to replace the number of trips per month by a number of days per month. Do not eliminate special requests to Cedar Sinai for example and take staff completely out of the judgmental aspect and for this fiscal year approve the location because he did not believe there would be a lot of calls for special requests to Cedar Sinai. In short, he does not support going back to where the Council was a month ago. AUGUST 5, 2008 PAGE 13 CITY COUNCIL M/Tanaka said that one of the things that bothered him about the program early on as the Council was looking to refine the program was that there were rumors afloat that the Council wanted to dismantle or eliminate the program. In fact, that was never a consideration. He agreed that eliminating the special needs request would be a positive change and that increasing the medical trips to a 20 -mile radius would cover the bulk of the needs for users. Rather than looking at the changes as going back to the original program the Council may have made decisions a little too quickly. Over the past five or six weeks Council Members have had an opportunity to talk with residents and encourage program users to really look at what is available. Looking back at the original packet he felt the original program was an outstanding program and perhaps needed a little fine tuning. M/Tanaka stated that there is a motion to eliminate the special needs requests and to expand the medical trips to a 20 -mile radius and all other aspects of the program would remain in place. With the following Roll Call vote, motion carried: AYES: COUNCIL MEMBERS: Chang, MPT/Everett, M/Tanaka NOES: COUNCIL MEMBERS: Herrera, Tye ABSENT: COUNCIL MEMBERS: None M/Tanaka stated the motion passes 3-2. He requested that all of the Dial -A - Ride Program subscribers be notified of the changes in a timely manner. CM/DeStefano asked for clarification of the approved motion and asked if it was intended to become effective immediately. C/Chang asked why staff was concerned. CM/DeStefano said staff was concerned about notification to the users. M/Tanaka asked what would be a reasonable effective date. CM/DeStefano responded that staff would arbitrarily need about a week to 10 -days in order to clarify the issues with the cab company and to get notification out to the 1300 or so users. M/Tanaka asked if mid -month would be satisfactory to the Council. CM/DeStefano said that while the Council deliberated about the effective date he would advise Council that staff would work with the senior groups that utilize the Diamond Bar Center and Heritage Park facilities, issue press releases, etc. to get the message of the Council's decision out to the public. M/Tanaka said 10 working days and two weeks. AUGUST 5, 2008 PAGE 14 CITY COUNCIL 9. COUNCIL SUBCOMMITTEE REPORTS/COUNCIL MEMBER COMMENTS: C/Herrera said that the Council spent a lot of time discussing the Dial -A -Ride program and the Council will re-evaluate how the changes will affect the costs. Because it comes down to what the City can afford the Council will be evaluating the program again in six months. She voted No because she feels that what was put out on the table today was not in the best interest of all residents but this is a democracy and majority rules. She is concerned about finances and is very fiscally prudent. D.B. cannot afford to add on and add on and spend and spend and spend because other areas of the budget will suffer. She is concerned about balancing the budget and living within the budget. She believed the Council had an obligation to all 59,000 residents who depend on the Council to make fully prudent decisions and while this program is very important to the individuals sitting in the audience, there are other programs that are very important to the City's youth and other residents. The City needs to balance its budget and continue to be fiscally healthy for the future. C/Tye said he appreciated C/Herrera's comments. D.B. does things differently and lives within its means which he believed was appropriate. He voted No (on the Diamond Ride issue) because he felt it was not a good use of the Council's time to make changes toward being fiscally responsible and then undo those changes. His question for staff was that the policy for two weeks was for residents to pay for leaving the boundary of D.B. and would the City reimburse those folks by undoing that policy orjust let it go? C/Tye felt that the Council was getting very close to fine tuning and tweaking the program and he believed the Council had undone a lot of good work and essentially all the Council did was add a medical overlay and eliminate special requests. He thanked Audrey Hamilton for her work on the Greater Los Angeles County Vector Control District and appreciate that she brought the Bug Bus to the schools in D.B. Audrey does an outstanding job and the City appreciates her efforts. D.B. resident George Fullerton who happens to be the assistant principal at Diamond Ranch High School was in New Orleans the last week in June to compete and placed first in the Open Creative Breaking Division in Martial Arts. C/Chang said the Council spent a lot of time talking about Diamond Ride and was glad that all Council Members were concerned about a fiscally responsible government. The program the Council passed tonight is a better program so that the City does not spend more money than it should. Last Tuesday the earth shook with the epicenter in Chino Hills. He was out of town and glad to learn that no one was injured and that there was no appreciable damage in D.B. He urged residents not to panic but to be very alert and get prepared. MPT/Everett said he hoped residents were enjoying the summer season, the concerts and the movies. The Neighborhood Improvement subcommittee met with staff on July 21 to continue a focus on the amenities and serenity of the neighborhoods in which residents live and believed staff was doing a very good job with what is available in that regard. On July 24, he along with the Mayor and Mrs. AUGUST 5, 2008 PAGE 15 CITY COUNCIL Tanaka participated in celebrating Parole Officers' Week. The Region IV Parole Headquarters and Department museum is located on Pathfinder Rd. in D.B. He thanked the parole officers for their excellent work. On Friday many Council Members along with 175 business owners joined in the Grand Opening festivities for the Kaiser-Permanente full service facility on Bridge Gate Dr. Saturday he, the Mayor and Mrs. Tanaka attended an Eagle Scout ceremony for Nathan Leon from Troop 888 at the Chinese Baptist Church in Anaheim. Last week two significant decisions were made by the Pomona Unified School District Board. One was to appoint Steve Lustrow to fill the Board vacancy, a long-time resident and Community Development Director for the City of Claremont. Secondly, the Board passed a resolution ordering an election to authorize school bonds, a move that has the potential to deliver excellent resources to every school in the District. On Saturday he attended the D.B./Walnut Sheriff's Station employee picnic at the Brookside Equestrian Center in Walnut. He said that his comments tonight were his way of communicating and asked residents to visit the D.B. website to view the Council's goals and provide feedback to Council Members and staff. He said he personally appreciated residents' comments this evening regarding the Dial -A -Ride program. M/Tanaka said he had a couple of busy weeks. He attended the Southern California Customer Information meeting on Renewable Energy, Cost of Electricity in the Future and Challenges facing Southern California Edison. Two weeks ago he and C/Chang attended the Taipei Elementary School orchestra performance at the Diamond Bar Center hosted by the D.B. Chinese American Association's Evergreen Senior Club. The YMCA had a ribbon -cutting ceremony on Maple Hill where they were given the Maple Hills Club which provides them with a fitness center, outdoor basketball court, and swimming pool. There was a memorial service for long-time D.B. resident and Pomona Host Lions Club MemberJohn Isaac last week. The San Gabriel Valley COG Transportation Committee met last week to talk about Proposition 1 A funding and proposed Y2 cent tax increase for Los Angeles County to fund transportation and project needs for the County particularly the Gold Line extension. LA County Sanitation District 21 held its regular meeting and discussed routine matters. Parole Officers week was held at Region IV Headquarters and was a wonderful event that included a color guard from the California Institution for Men. The ribbon -cutting for D.B. Kaiser-Permanente was an outstanding event and the facility incorporated green construction. The construction staff praised the efficiency of the D.B. Planning Department staff members. He congratulated Nathan Leon for attaining the rank of Eagle Scout at the young age of 14; he also congratulated Troop 888. This past weekend the D.B. Soccer League held its family picnic in celebration at Peterson Park. He thanked the Sheriff's Department for the D.B./Walnut Sheriff's Station employee picnic. The hardworking employees had a chance to relax with their families. He thanked the employees who take care of D.B. Yesterday morning he attended the LA County Fair meeting to discuss D.B. Day at the Fair on Thursday, September 11. He invited everyone to participate in this week's Concerts in the Park and National Night Out. AUGUST 5, 2008 PAGE 16 CITY COUNCIL ADJOURNMENT: With no further business to conduct, M/Tanaka adjourned the regular City Council meeting at 9:08 p.m. TOMMYE CRIBBINS, CITY CLERK The foregoing minutes are hereby approved this day of 2008. 4 Agenda No. 6.2 MINUTES OF THE CITY OF DIAMOND BAR REGULAR MEETING OF THE PLANNING COMMISSION MAY 27, 2008 CALL TO ORDER: Vice Chairman Torng called the meeting to order at 7:05 p.m_ in the South Coast Air Quality Management District/Government Center Auditorium, 21865 Copley Drive, Diamond Bar, CA 91765. PLEDGE OF ALLEGIANCE: Commissioner Nolan led the Pledge of Allegiance. 1. ROLL CALL Present: Commissioners Kwang Ho Lee, Kathleen Nolan, and Vice Chairman Tony Torng, Absent: Commissioner Jack Shah and Chairman Steve Nelson were excused. Also present: Nancy Fong, Community Development Director; Greg Gubman, Planning Manager; Ann Lungu, Associate Planner; David Alvarez, Planning Technician; Kimberly Molina, Associate Engineer; Gregg Kovacevich, Assistant City Attorney; Anthony Santos, Management Analyst; and Stella Marquez, Senior Administrative Assistant. SPECIAL PRESENTATION: VC/Torng and the Planning Commissioners presented a Plaque to Ann J. Lungu, Associate Planner on the occasion of her retirement from the City of Diamond Bar. 2. MATTERS FROM THE AUDIENCE/PUBLIC COMMENTS: None 3. APPROVAL OF AGENDA: As presented. 4. CONSENT CALENDAR: 4.1 Minutes of the Housing Element Workshop of May 13, 2008. 4.2 Minutes of Regular Meeting of May 13, 2008. C/Lee moved, C/Nolan seconded to approve the Consent Calendar as presented. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Lee, Nolan, VC/Torng NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: Shah, Chair/Nelson MAY 27, 2008 PAGE 2 PLANNING COMMISSION 5. OLD BUSINESS: None 6. NEW BUSINESS: 6.1 CAPITAL IMPROVEMENT PROGRAM FOR CONFORMITY WITH THE GENERAL PLAN FOR FISCAL YEAR 2008-2009 PT/Alvarez presented staff's report and recommended that the Planning Commission find the Fiscal Year 2008-2009 Capital Improvement Program to be in Conformity with the City's General Plan. C/Nolan asked what the Sycamore Canyon Creek repair would consist of and CDD/Fong responded that the project will restore/repair the habitat by cleaning up the area to keep it natural. C/Nolan asked if the Summitridge Trailhead project was a continuation of a previous project and CDD/Fong responded that it was part of the Trails Master Plan that the City continues to pursue to completion. CDD/Fong responded to VC/Torng that based on the reduction of the City's budget a number of projects have been reduced. Certain projects receive funding in certain fiscal years. VC/Torng said it was interesting that traffic and parks and recreation items were included in the funding and wondered if the Planning Commission controlled the budget of those two departments. PM/Gubman explained that the Capital Improvement Programs were developed through the Public Works Department. The City Council will ultimately make the decision whether the projects are fiscally prudent. State law requires that before the City Council makes its decision the Planning Commission must find that the programs are in conformity with the City's General Plan to further its goals and policies. The Planning Department is not directly involved in the budgeting of these programs. However, the Planning staff is obligated to present the program to the Commission and provide an analysis that supports its finding that the projects are consistent with the General Plan. There was no one present who wished to speak on this matter. C/Nolan moved, C/Lee seconded, to find the Capital Improvement Program to be in conformity with the General Plan for Fiscal Year 2008-2009. Motion carried by the following Roll Call vote: w MAY 27, 2008 PAGE 3 PLANNING COMMISSION AYES: COMMISSIONERS: Lee, Nolan, VC/Torng NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: Shah, Chair/Nelson 7. PLANNING COMMISSIONER COMMENTS/INFORMATIONAL ITEMS: None Offered. 8. STAFF COMMENTS/INFORMATIONAL ITEMS: 8.1 Public Hearing dates for future projects. 9. SCHEDULE OF FUTURE EVENTS: As listed in tonight's agenda. ADJOURNMENT: With no further business before the Planning Commission, Chairman Nelson adjourned the regular meeting at 7:27 p.m. Attest: Respectfy)ly SutAiitt j, y Torng, Vice C firman N ficy Fong, Fommur, Vy Development Director CITY COUNCIL TO: Honorable Mayor and Members of the City Council Agenda # 6.3 Meeting Date: August 19, 2008 AGENDA REPORT FROM: James DeStefano, City Man g TITLE: Ratification of Check Register date July 31, 2008 through August 13, 2008 totaling $1,077,058.88. RECOMMENDATION: Ratify. FINANCIAL IMPACT: Expenditure of $1,077,058.88 in City funds. BACKGROUND: The City has established the policy of issuing accounts payable checks on a weekly basis with City Council ratification at the next scheduled City Council meeting. DISCUSSION: The attached check register containing checks dated July 31, 2008 through August 13, 2008 for $1,077,058.88 is being presented for ratification. All payments have been made in compliance with the City's purchasing policies and procedures. Payments have been reviewed and approved by the appropriate departmental staff and the attached Affidavit affirms that the check register has been audited and deemed accurate by the Finance Director. PREPARED BY: Linda G. Magnuson Finance Director REVIEWED BY: Finande tbirector Assistant City Manager Attachments: Affidavit and Check Register — 07/31/08 through 08/13/08. CITY OF DIAMOND BAR CHECK REGISTER AFFIDAVIT The attached listings of demands, invoices, and claims in the form of a check register including checks dated July 31, 2008 through August 13, 2008 has been audited and is certified as accurate. Payments have been allowed from the following funds in these amounts: Description Amount General Fund $545,821.18 Prop A - Transit Fund 88,261.66 Int. Waste Mgt Fund 5,922.95 Prop A - Safe Nbrhood Parks Fund 17,792.00 CDBG Fund 15,883.36 COPS Fund 995.00 LLAD 38 Fund 10,665.08 LLAD 39 Fund 12,891.73 LLAD 41 Fund 5,292.20 Capital Improvement Project Fund 369,937.72 Self Insurance Fund 3,596.00 $1,077,058.88 Signed: Linda G. Ma on Finance Director City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 8/7/2008 08 -PP 16 PAYROLL TRANSFER P/R TRANSFER-08/PP 16 125 102001,750.36 2,000.00 $180,227.36 8/7/2008 PAYROLL TRANSFER P/R TRANSFER-08/PP 16 115 10200 4,558.78 1 41200 1 8/7/2008 PAYROLL TRANSFER P/R TRANSFER-08/PP 16 001 10200 167,589.36 8/7/2008 PAYROLL TRANSFER P/R TRANSFER-08/PP 16 112 10200 6,328.86 SUPPLIES -PROMO ITEMS 7/31/2008 1 81355 JA AMERICAN SELF STORAGE ISTORAGE FACILITY -COMM SVC 1 0014090 1 42140 1 2,590.001 $49,110.70 $2,590.00 ADVANTEC CONSULTING ENGINEERS INC TRAFFIC SIGNAL DESIGN -MAY 2505510 46412 2,000.00 7/31/2008 7/31/2008 1 81356 JAAA FLAG AND BANNER SUPPLIES -FLAGS DBC 1 0015333 1 41200 1 7/31/2008 $582.30 MEDIAN MODIFICTN-GRND 0015551 45222 6,540.00 7/31/2008 ADVANTEC CONSULTING ENGINEERS INC TRFFC SIGNAL DESIGN -MAR 7/31/2008 1 81357 JADAPT CONSULTING INC SUPPLIES -PROMO ITEMS 1 1155516 1 41400 1 214.971 TRAFFIC SIGNAL DESIGN -APR $214.97 7/31/2008 81358 ADVANTEC CONSULTING ENGINEERS INC CITYWIDE TRAFFIC -MAR 0015510 44000 2,585.44 $49,110.70 7/31/2008 ADVANTEC CONSULTING ENGINEERS INC TRAFFIC SIGNAL DESIGN -MAY 2505510 46412 2,000.00 7/31/2008 ADVANTEC CONSULTING ENGINEERS INC TRAFFIC SIGNAL DESIGN -MAY 2505510 46412 2,700.00 7/31/2008 ADVANTEC CONSULTING ENGINEERS INC MEDIAN MODIFICTN-GRND 0015551 45222 6,540.00 7/31/2008 ADVANTEC CONSULTING ENGINEERS INC TRFFC SIGNAL DESIGN -MAR 2505510 46412 9,000.00 7/31/2008 ADVANTEC CONSULTING ENGINEERS INC TRAFFIC SIGNAL DESIGN -APR 2505510 46412 6,300.00 7/31/2008 ADVANTEC CONSULTING ENGINEERS INC TRAFFIC MGMT.SYS-MAY 0015510 44000 8,430.00 7/31/2008 ADVANTEC CONSULTING ENGINEERS INC TRAFFIC MGMT.SYS-JUN 0015510 44000 2,940.00 7/31/2008 ADVANTEC CONSULTING ENGINEERS INC PROF.SVCS-ADT COUNTS 0015240 44000 3,000.00 7/31/2008 ADVANTEC CONSULTING ENGINEERS INC CITYWIDE TRAFFIC -APR 0015510 44000 1,424.86 7/31/2008 ADVANTEC CONSULTING ENGINEERS INC CITYWIDE TRAFFIC -MAY 0015510 44000 2,228.47 7/31/2008 ADVANTEC CONSULTING ENGINEERS INC CITYWIDE TRAFFIC -JUN 0015510 44000 1 1,961.93 7/31/2008 1 81359 JAGRICULTURAL COM WGHTS & MEASURES COYOTE CONTROL SVCS -JUN 0014431 1 45406 1 1,283.561 $1,283.56 7/31/2008 81360 ARROWHEAD WATER SUPPLIES -DBC 0015333 41200 2.00 $38.17 7/31/2008 ARROWHEAD EQ RENTAL -DBC 0015333 42130 10.81 7/31/2008 ARROWHEAD WATER SUPPLIES -DBC 0015333 41200 25.36 7/31/2008 1 81361 JAT&T MOBILITY ICELL CHARGES -POOL VEH 1 0014090 1 42125 1 32.221 $32.22 7/31/2008 81362 CA PARK & RECREATION SOCIETY MEMBERSHIP DUES-MEYERS 0015350 42315 140.00 $1,160.00 7/31/2008 CA PARK & RECREATION SOCIETY MEMBERSHIP DUES-MEYER 0015350 42315 155.00 7131/2008 CA PARK & RECREATION SOCIETY MEMBERSHIP DUES-BATSON 0015350 42315 140.00 7/31/2008 CA PARK & RECREATION SOCIETY MEMBERSHIP DUES-MURPHEY 0015350 42315 140.00 Page 1 City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 Check Date Check Number Vendor Name Transaction Description Fund/ DeptAcct # Amount Total Check Amount 7131/2008 7/31/2008 81362... CA PARK & RECREATION SOCIETY CA PARK & RECREATION SOCIETY MEMBERSHIP DUES -ROSE MEMBERSHIP DUES-SEILER 0015310 0015350 42315 42315 450.00 135.00 $1,160.00 ... 7/31/2008 B1363 CARSON TRAILER INC EQ STORAGE-EOC 0014440 R46250 12,651.10 $18,976.65 7/31/2008 ICARSON TRAILER INC JEQ STORAGE-EOC 0015340 R46250 6,325.55 1 1 7/31/2008 81364 CATALINA BALLAST BULB COMPANY SUPPLIES -DBC 0015333 41200 112.47 $247.54 7/31/2008 CATALINA BALLAST BULB COMPANY SUPPLIES -DBC 0015333 41200 50.96 1 1 7/31/2008 81366 CATALINA BALLAST BULB COMPANY SUPPLIES -DBC 0015333 41200 13.91 $1,349.00 7/31/2008 CATALINA BALLAST BULB COMPANY SUPPLIES -DBC 0015333 41200 70.20 7/31/2008 1 81365 ICECILIA CHEUNG IRECREATION REFUND 1 001 1 34780 1 45.00 $45.00 7/31/2008 FS CONSTRUCTION 1CONSTRCTN-BATTING CAGES 2505310 46415 156,991.58 1 1 7/31/2008 1 81366 ICITY OF CERRITOS I LEGAL -PT ADMIN O/CHG 0014020 44021 1,349.001 $1,349.00 7/31/2008 1 81367 ICOLD DUCK PRODUCTIONS INC BAND -CONCERT IN PARK 0015350 45305 1,500.001 $1,500.00 7/31/2008 1 81368 ILISA COTRONEO RECREATION REFUND 001 34760 95.00 $95.00 7/31/2008 1 81369 IDENNIS CAROL 1PROF.SVCS-CC MTG 7/15 0014030 1 44000 1 300.001 $300.00 7/31/2008 1 81370 IDIAMOND BAR SENIOR CITIZENS CLUB REIMB-CLUB INSURANCE 1255215 1 44000 1 500.001 $500.00 7/31/2008 81371 DIAMOND BAR/WALNUT YMCA PROF.SVCS-CDBG MAR -JUN 1 1255215 1 42355 1 12,708.001 $12,708.00 7/31/2008 1 81372 JDMS CONSULTANTS CIVIL ENGINEERS INC IST IMPROVEMNTS-GRAND 1 2505510 1 46411 1 2,320.001 $2,320.00 7/31/2008 81373 JADELFO EMANUELE RECREATION REFUND 1 001 1 34780 1 62.001 $62.00 7/31/2008 81374 JENVIRONMENTAL IMPACT SCIENCES IPROF SVCS -COM DEV 1 0015210 1 44000 1 5,000.001 $5,000.00 7/31/2008 81375 FS CONSTRUCTION RETENTION PAYABLE 250 20300 -15,699.16 $141,292.42 7/31/2008 FS CONSTRUCTION 1CONSTRCTN-BATTING CAGES 2505310 46415 156,991.58 1 1 7/31/2008 81376 IGO LIVE TECHNOLOGY INC PROF.SVCS-WK 7/25 1 0014070 1 R44000 1 4,050.001 $4,050.00 7/31/2008 81377 ILOURBETH GOMEZ FACILITY REFUND -DBC 1 001 1 23002 1 100.001 $66.00 Page 2 City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 7/31/2008 81377... ILOURBETH GOMEZ PROPERTY DAMAGE 001 36615 -34.00 $66.00 ... 7/31/2008 81378 INLAND VALLEY DAILY BULLETIN LEGAL AD -DIST 39 1395539 42115 955.00 $2,842.50 7/31/2008 INLAND VALLEY DAILY BULLETIN LEGAL AD -DIST 41 1415541 42115 957.50 7/31/2008 81380 INLAND VALLEY DAILY BULLETIN LEGAL AD-TRFFC SIGNAL 0015510 42115 131.25 $60.00 7/31/2008 INLAND VALLEY DAILY BULLETIN LEGAL AD -DIST 38 1385538 42115 798.75 7/31/2008 81379 IJULIUS JACELA IFACILITY REFUND -DBC 001 23002 100.001 $100.00 7/31/2008 MANAGED HEALTH NETWORK AUG 08 -EAP PREMIUMS 001 21115 155.46 7/31/2008 81380 IJOYCE Y LEE REIMB-SWANA WK SHOP 1155515 42340 60.001 $60.00 7/31/2008 81381 IKOA CORPORATION IDESIGN SVCS -PALOMINO 2505510--F-4 34780 19,636.001 $19,636.00 7/31/2008 81382 LANDS' END BUSINESS OUTFITTERS SUPPLIES -RECREATION 0015350 R41200 1,800.001 $1,800.00 7/31/2008 81383 ILIBERTY FLAG & SPECIALTY COMPANY SUPPLIES -DBC 0015333 1 41200 391.951 $391.95 7/31/2008 81384 ILIVESOUND CONCEPTS SOUND SYS -CONCERT IN PK 0015350 1 45305 620.001 $620.00 7/31/2008 81385 ILOS ANGELES COUNTY PUBLIC WORKS 1INDUSTRIAL WASTE -APR 0015510 1 45530 1 3,318.141 $3,318.14 7/31/2008 81386 ITHOMAS LOTT IPROMO SUPPLIES -LOGO PENS 0014095 1 41400 1 3,391.181 $3,391.18 7/31/2008 81387 JEILEEN MAC IRECREATION REFUND 001 1 34780 1 80.001 $80.00 7/31/2008 1 81388 IMAIN STREET TOURS TRANS -EXCURSION 8/16 1125350 1 45310 1 725.00 $725.00 7/31/2008 81389 MANAGED HEALTH NETWORK JULY 08 -EAP PREMIUMS 001 21115 152.90 $311.36 7/31/2008 MANAGED HEALTH NETWORK AUG 08 -EAP PREMIUMS 001 21115 155.46 7/31/2008 1 81390 1HEATHER MAROJ IRECREATION REFUND 1 001 34780 115.001 $115.00 7/31/2008 81391 IMARTIN & CHAPMAN CO PUBLICATIONS -CITY CLERK 0014030 42320 26.491 $26.49 7/31/2008 81392 IGLORIA MARTINEZ IRECREATION REFUND 001 34780 62.001 $62.00 7/31/2008 1 81393 IMCE CORPORATION VEGETATION CONTROL -JUN 0015558 45508 7,778.581 $38,885.43 Page 3 City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 7/31/2008 81393... MCE CORPORATION SLURRY SEAL -DBC JUN 0015333 42210 31,106.85 $38,885.43... 7/31/2008 81394 MERCURY DISPOSAL SYSTEMS INC SUPPLIES -RECYCLING KIT 1155516 41200 377.98 $1,089.20 7/31/2008 MERCURY DISPOSAL SYSTEMS INC RECYCLING FEES-JUL 08 1155515 44000 711.22 7/31/2008 1 81395 IMICROSOFT CORPORATION JANNL COMP SUPPORT-I.T. 1 0014070 1 42205 1 8,299.00 $8,299.00 7/31/2008 OFFICEMAX INC SUPPLIES -DBC 0015333 41200 430.61 7/31/2008 1 81396 INORRIS REPKE INC ISLURRY SEAL -AREA 4 1 2505510 1 46411 1 705.00 $705.00 7131/2008 81397 OFFICEMAX INC SUPPLIES -COMM SVCS 0015350 41200 46.35 $4,970.03 7/31/2008 OFFICEMAX INC SUPPLIES -DBC 0015333 41200 430.61 7/31/2008 OFFICEMAX INC SUPPLIES -DBC 0015333 41200 107.39 7131/2008 OFFICEMAX INC SUPPLIES -TRANSIT 1125553 41200 56.29 7/31/2008 OFFICEMAX INC SUPPLIES-PLNG 0015210 41200 96.39 7/31/2008 OFFICEMAX INC SUPPLIES -DBC 0015333 41200 142.23 7/31/2008 OFFICEMAX INC SUPPLIES -DBC 0015333 41200 46.76 7/31/2008 OFFICEMAX INC SUPPLIES-P/INFO 0014090 41200 31.17 7/31/2008 OFFICEMAX INC SUPPLIES-P/INFO 0014090 41200 4.27 7/31/2008 OFFICEMAX INC SUPPLIES-PLNG 0015210 41200 98.92 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 219.76 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 55.65 7/31/2008 OFFICEMAX INC SUPPLIES-P/INFO 0014095 41200 68.75 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 221.30 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 44.87 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 189.99 7/31/2008 OFFICEMAX INC SUPPLIES-CMGR 0014030 41200 10.38 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 227.98 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 25.98 7/31/2008 OFFICEMAX INC SUPPLIES -COMM SVCS 0015350 41200 30.09 7/31/2008 OFFICEMAX INC MEMO CREDIT -COMM SVCS 0015350 41200 -22.69 7/31/2008 OFFICEMAX INC SUPPLIES-CMGR 0014030 41200 34.96 7/31/2008 OFFICEMAX INC SUPPLIES -COMM SVCS 0015350 41200 87.73 7/31/2008 OFFICEMAX INC SUPPLIES -COMM SVCS 0015350 41200 54.00 7/31/2008 OFFICEMAX INC SUPPLIES -COMM SVCS 0015350 41200 63.22 7/31/2008 1OFFICEMAX INC MEMO CREDIT -COMM SVCS 0015350 41200 -3.48 Page 4 City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 Check Date Check Number Vendor Name Transaction Description Fund! Dept Acct # Amount Total Check Amount 7/31/2008 81397... OFFICEMAX INC SUPPLIES -COMM SVCS 0015350 41200 171.39 $4,970.03 ... 7/31/2008 OFFICEMAX INC SUPPLIES -COMM SVCS 0015350 41200 13.14 7/31/2008 OFFICEMAX INC MEMO CREDIT -DBC 0015333 41200 -11.27 7/31/2008 OFFICEMAX INC SUPPLIES -DBC 0015333 41200 97.00 7/31/2008 OFFICEMAX INC SUPPLIES -COMM SVCS 0015350 41200 5.72 7/31/2008 OFFICEMAX INC SUPPLIES -DBC 0015333 41200 97.54 7/31/2008 OFFICEMAX INC MEMO CREDIT -DBC 0015333 41200 -97.54 7/31/2008 OFFICEMAX INC SUPPLIES -DBC 0015333 41200 99.72 7/31/2008 OFFICEMAX INC SUPPLIES -DBC 0015333 41200 418.23 7/31/2008 OFFICEMAX INC SUPPLIES -DBC 0015333 41200 189.20 7/31/2008 OFFICEMAX INC SUPPLIES -DBC 0015333 41200 167.07 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 28.50 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 149.49 7/31/2008 OFFICEMAX INC SUPPLIES-P/INFO 0014095 41200 57.05 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 15.89 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 74.63 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 15.86 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 52.53 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 111.46 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 392.30 7/31/2008 OFFICEMAX INC MEMO CREDIT-C/MGR 0014030 41200 -9.42 7/31/2008 OFFICEMAX INC SUPPLIES -CITY MANAGER 0014030 41200 8.55 7/31/2008 OFFICEMAX INC SUPPLIES -GENERAL 0014090 41200 70.75 7/31/2008 OFFICEMAX INC SUPPLIES -CITY MANAGER 0014030 41200 9.42 7/31/2008 OFFICEMAX INC SUPPLIES -CITY MANAGER 0014030 41200 34.53 7/31/2008 OFFICEMAX INC SUPPLIES -CITY MANAGER 0014030 41200 36.74 7/31/2008 OFFICEMAX INC SUPPLIES -COMM SVCS 0015350 41200 51.78 7/31/2008 OFFICEMAX INC SUPPLIES -COMM SVCS 0015350 41200 107.19 7/31/2008 OFFICEMAX INC SUPPLIES-P/WORKS 0015510 41200 8.90 7/31/2008 OFFICEMAX INC SUPPLIES -COMM SVCS 0015350 41200 57.60 7/31/2008 OFFICEMAX INC SUPPLIES -COMM SVCS 0015350 41200 146.37 7/31/2008 1OFFICEMAX INC SUPPLIES -COMM SVCS 0015350 41200 30.74 7/31/2008 81398 JOLYMPIC STAFFING SERVICES TEMP SVCS -WK 717 0015510 44000 158.88 $476.64 7/31/2008 OLYMPIC STAFFING SERVICES TEMP SVCS -WK 7/10 0015210 1 44000 317.76 Page 5 City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 Check Date ICheckNumberl Vendor Name I Transaction Description Fund/ Dept I Acct # I Amount I Total Check 7/31/2008 81399 PTM GENERAL ENGINEERING CORP RETENTIONS PAYABLE 250 20300 -19,321.70 $173,895.30 7/31/2008 IPTIM GENERAL ENGINEERING CORP TRAFFIC SIGNAL -PHASE 1 2505510 46412 193,217.00 7/31/2008 81400 REGIONAL CHAMBER OF COMMERCE MTG-COUNCIL 0014010 42325 35.00 $175.00 7/31/2008 REGIONAL CHAMBER OF COMMERCE MTG-COUNCIL 0014010 42325 35.00 7/31/2008 81402 REGIONAL CHAMBER OF COMMERCE MTG-COUNCIL 0014010 42325 35.00 $44.95 7/31/2008 REGIONAL CHAMBER OF COMMERCE MTG-CMGR/ACMGR 0014030 42325 70.00 7/31/2008 1 81401 IREGIONAL CHAMBER OF COMMERCE CONTRACT SVCS -AUG 08 0014096 1 45000 1 1,000.00 $1,000.00 7/31/2008 ROD JACKSON & ASSOCIATES INC REFUND -BLDG PERMIT 001 34650 25.00 7/31/2008 1 81402 1ANITA RIX IFACILITY REFUND -DBC 001 1 23002 1 350.001$350.00 $44.95 7/31/2008 81403 ROD JACKSON & ASSOCIATES INC REFUND -BLDG PERMIT 001 23012 1,800.00 $2,080.00 7/31/2008 ROD JACKSON & ASSOCIATES INC REFUND -BLDG PERMIT 001 34650 25.00 7/31/2008 81410 ROD JACKSON & ASSOCIATES INC REFUND -BLDG PERMIT 001 34640 255.00 $44.95 7/31/2008 81404 S C SIGNS & SUPPLIES LLC SUPPLIES -ROAD MAINT 0015554 41250 258.72 $614.30 7/31/2008 S C SIGNS & SUPPLIES LLC SUPPLIES -ROAD MAINT 0015554 41250 200.78 7/31/2008 81410 S C SIGNS & SUPPLIES LLC SUPPLIES -ROAD MAINT 0015554 41250 154.80 $44.95 7/31/2008 1 81405 ISASAKI TRANSPORTATION SVCS. PROF.SVCS-ENGINEERING 0015510 1 44000 14,730.47 $14,730.47 7/31/2008 81406 ADVERTISING INC PROF.SVCS-DBC BANNERS 0014095 44000 1,250.00 $2,927.88 7/31/2008 �SIMPSON SIMPSON ADVERTISING INC BANNER STANDS-P/INFO 0014095 46250 1,677.88 7/31/2008 1 81407 IST DENIS CATHOLIC COMMUNITY REIMB-FOOD CONCERTS 1 0015350 1 45305 1 70.75 $70.75 7/31/2008 81408 THE SAN GABRIEL VALLEY NEWSPAPER GR LEGAL AD -RFP ST MAI NT 0015510 42115 69.74 $310.16 7/31/2008 THE SAN GABRIEL VALLEY NEWSPAPER GR LEGAL AD -SLURRY SEAL 0015510 42115 125.60 7/31/2008 81410 THE SAN GABRIEL VALLEY NEWSPAPER GR LEGAL AD-CDBG CURB RAMP 0015510 42115 114.82 $44.95 7/31/2008 1 81409 ITHOMSON WEST PUBLICATIONS -CITY CLERK 0014030 1 42320 1 214.32 $214.32 7/31/2008 1 81410 ITIME WARNER I MODEM SVCS -COUNCIL 0014010 42130 44.951 $44.95 7/31/2008 81411 TRAFFIC DATA SYSTEMS SERVICES PROF.SVCS-NTMP 2505510 46412 625.00 $625.00 Page 6 City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 Check Date ICheckNumberl Vendor Name I Transaction Description Fund/ Dept I Acct # I Amount I Total Check 7/31/2008 1 81412 ITRANSCORE LLC ITRFC MNGMT SYS -JUN 1 2505510 1 46412 1 1,664.001 $1,664.00 7/31/2008 81413 VALLEY CREST LANDSCAPE MAINT INC LNDSCP MAINT-DBC JULY 0015333 45300 5,645.47 $32,199.58 7/31/2008 VALLEY CREST LANDSCAPE MAINT INC LNDSCP MAINT-PARKS JULY 0015340 45300 24,604.11 7131/2008 81417 VALLEY CREST LANDSCAPE MAINT INC ADDL MAINT-DIB HGHSCH 0015340 42210 1,950.00 $1,240.63 7/31/2008 81414 VERIZON CALIFORNIA PH.SVCS-REAGAN 0015340 1 42125 87.92 $175.86 7/31/2008 VERIZON CALIFORNIA PH.SVCS-PANTERA PK 0015340 42125 87.94 7/31/2008 81415 VERIZON WIRELESS -LA CELL CHRGS-DESFORGES 0014070 42125 50.41 $215.18 7/31/2008 VERIZON WIRELESS -LA CELL CHRGS-AZIZ 0014070 42125 50.41 7/31/2008 81417 VERIZON WIRELESS -LA CELL CHRGS-CMGR 0014030 42125 69.96 $1,240.63 7/31/2008 VERIZON WIRELESS -LA CELL CHRGS-EOC 0014440 42125 44.26 7/31/2008 81418 VERIZON WIRELESS -LA CELL CHRGS-EOC 0014090 42125 0.141 1 7/31/2008 1 81416 IMYRON VILLANUEVA FACILITY REFUND -DBC 001 23002 100.001 $100.00 7/31/2008 WARREN SIECKE TRAFFIC SIGNAL SVCS -JUN 2505510 46412 9,261.00 7/31/2008 1 81417 IVISION SERVICE PLAN JAUG 08 -VISION PREMIUMS 001 21107 1,240.631 $1,240.63 7/31/2008 WARREN SIECKE TRAFFIC SIGNAL SVCS -JUN 2505510 R46412 179.66 7/31/2008 1 81418 IWALNUT VALLEY KIWANIS CLUB FOOD REIMB-CONCERT IN PK 1 0015350 1 45305 103.00 $103.00 7/31/2008 81419 WARREN SIECKE PRORSVCS-ENGINEERING 0015554 44520 412.50 $10,212.50 7/31/2008 WARREN SIECKE TRAFFIC SIGNAL SVCS -JUN 2505510 46412 9,261.00 7/31/2008 81422 WARREN SIECKE TRAFFIC SIGNAL SVCS -JUN 2505510 R46412 179.66 $13,431.32 7/31/2008 WARREN SIECKE TRAFFIC SIGNAL SVCS -JUN 2505510 R46412 179.66 7/31/2008 WARREN SIECKE TRAFFIC SIGNAL SVCS -JUN 2505510 R46412 179.1581 1 7/31/2008 814211 JJOANNA WONG SUPPLIES -DBC 0015333 41200 1 1,157.95 $1,185.33 7/31/2008 IWAXIESANITARYSUPPLY WAXIE SANITARY SUPPLY SUPPLIES -PARKS 0015340 42210 27.38 7/31/2008 1 81421 JJOANNA WONG RECREATION REFUND 001 1 34780 1 65.001 $65.00 8/7/2008 JADVANTEC ADVANTEC CONSULTING ENGINEERS INC ADMIN FEE -EN 08-612 001 23012 225.00 8/7/2008 1 81422 8E6 TECHNOLOGIES JINTERNET FILTER-I.T. 0014070 1 46230 1 13,431.32 $13,431.32 8/7/2008 81423 CONSULTING ENGINEERS INC ADMIN FEE -EN 08-613 001 34650 -90.00 $3,705.00 8/7/2008 JADVANTEC ADVANTEC CONSULTING ENGINEERS INC ADMIN FEE -EN 08-612 001 23012 225.00 Page 7 City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 8/7/2008 81423... ADVANTEC CONSULTING ENGINEERS INC ADMIN FEE -EN 08-612 001 23012 40.50 $3,705.00 ... 8/7/2008 81428 ADVANTEC CONSULTING ENGINEERS INC PROF.SVCS-ADT COUNTS 0015554 44520 2,000.00 $702.48 8/7/2008 ADVANTEC CONSULTING ENGINEERS INC ENGINEERING SVCS -APR 08 0015554 44520 980.00 8/7/2008 81429 ADVANTEC CONSULTING ENGINEERS INC ADMIN FEE -EN 08-612 001 34650 -40.50 $1,000.00 8/7/2008 ADVANTEC CONSULTING ENGINEERS INC PROF.SVCS-EN 08-613 001 23012 500.00 8/7/2008 81430 ADVANTEC CONSULTING ENGINEERS INC JADMIN FEE -EN 08-613 001 23012 1 90.00 $1,810.76 8/7/2008 81424 ALBERTSONS SUPPLIES -COMM SVCS 0015350 41200 25.56 $81.83 8/7/2008 1 ALBERTSONS SUPPLIES -COMM SVCS 0015350 41200 14.80 8/7/2008 81428 ALBERTSONS SUPPLIES -COMM SVCS 0015350 41200 9.40 $702.48 8/7/2008 ALBERTSONS SUPPLIES -COMM SVCS 0015350 41200 32.07 8/7/2008 81425 DON ARII REFUND -EN 07-599 001 23012 1,380.40 $1,585.60 8/7/2008 1 DON ARII REFUND -GRADING BOND 001 23001 205.20 1 8/7/2008 81426 & T PH.SVCS-GENERAL 0014090 42125 29.09 $53.92 8!7/2008 1 IAT AT & T PH.SVCS-GENERAL 0014090 42125 1 24.83 1 8/7/2008 1 81427 IEVELYN BACOSA FACILITY REFUND -DBC 1 001 1 23002 1 350.001 $350.00 8/7/2008 1 BUCKNAM & ASSOCIATES INC PAVEMENT MGMTN PROG-MAY 0015551 45221 8,209.00 8/7/2008 1 81428 BENESYST 8/8/08-P/R DEDUCTIONS 1 001 1 21105 1 702.481 $702.48 8/7/2008 1 81429 GUY BLACKMAN BAND -CONCERTS IN PARK 1 0015350 1 45305 1 1,000.00 $1,000.00 8/7/2008 1 81430 BLAZE CONE COMPANY INC SUPPLIES -ROAD MAINT 1 0015554 1 41250 1 1,810.76 $1,810.76 8/7/2008 1 81431 IGEORGE BRADSHAW FACILITY REFUND -DBC 1 001 1 23002 1 100.00 $100.00 8/7/2008 1 81432 KATHY BREAUX 1CONTRACT CLASS -SUMMER 1 0015350 1 45320 1 448.80 $448.80 8/7/2008 81433 BUCKNAM & ASSOCIATES INC PAVEMENT MGMT PROG-MAY 0015551 45221 505.00 $18,090.46 8/7/2008 1 BUCKNAM & ASSOCIATES INC PAVEMENT MGMTN PROG-MAY 0015551 45221 8,209.00 8/7/2008 BUCKNAM & ASSOCIATES INC PAVEMNT MGMT PROG-JUL 0015551 R45221 9,376.46 8/7/2008 1 81434 CALIFORNIA CONSERVATION CORP CLEARING-TRAIUSUMMTRDG 1235558 45300 16,512.00 $17,792.00 8/7/2008 1 CALIFORNIA CONSERVATION CORP GRAFFITI REMOVAL-SYC CYN 1235558 1 45300 1,280.00 1 Page 8 City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 8/7/2008 81435 CALIFORNIA CONTRACT CITIES ASSOC. IMEMBERSHIP DUES -FY 08/09 0014030 42315 1 3,640.00 $3,640.00 8/7/2008 1 81436 CALIFORNIA JPIA PROPERTY INS PROG-08/09 1 5104081 1 47200 1 3,596.00 $3,596.00 8/7/2008 81437 CDW GOVERNMENT INC. ADDL DISK STORAGE-I.T. 0014070 R46230 2,759.29 $28,776.58 8/7/2008 CDW GOVERNMENT INC. ADDL DISK STORAGE-I.T. 0014070 R46230 1,786.13 8/7/2008 81439 CDW GOVERNMENT INC. ANNL CISCO MAINT-FY 08/09 0014070 42205 10,986.70 $195.00 8/7/2008 CDW GOVERNMENT INC. MEMO CREDIT-I.T. 0014070 41200 -26.17 8/7/2008 81440 CDW GOVERNMENT INC. COMP SOFTWARE-P/INFO 0014070 46235 1,176.94 8/7/2008 CDW GOVERNMENT INC. ADDL DISK STORAGE-I.T. 0014070 R46230 12,093.69 8/7/2008 1 81438 TINA CHANG CONTRACT CLASS -SUMMER 1 0015350 1 45320 1 276.00 $276.00 8/7/2008 DIVERSIFIED PARATRANSIT INC DIAMOND RIDE -MAY 08 1125553 45529 37,505.82 8/7/2008 1 81439 SAVAY CHHAT RECREATION REFUND 001 1 34780 1 195.00 $195.00 8/7/2008 1 81440 COMEDYSPORTZ ENTERTAINMNT-DAY CAMP 0015350 1 45300 1 950.00$950.00 8/7/2008 1 81441 CONSTANCE J. LILLIE CONTRACT CLASS -SUMMER 0015350 1 45320 1 609.00$609.00 8/7/2008 1 81442 PETER CRUZ FACILITY REFUND -DBC 001 36615 1 400.00 $400.00 8/7/2008 1 81443 D & J MUNICIPAL SERVICES INC BLDG & SFTY SVCS -JUNE 0015220 1 45000 1 15,104.13 $15,104.13 8!7/2008 1 81444 DAVE BANG ASSOCIATES INC BENCHES -COMM SVCS 0015340 1 46250 1 1,972.31 $1,972.31 8/7/2008 1 81445 DAVID J. GRUNDY P & R COMM -7/24 1 0015350 1 44100 1 45.00 $45.00 8/7/2008 1 81446 DELTA CARE USA AUG 08 -DENTAL PREMIUMS 001 21104 1 385.71 $385.71 8/7/2008 1 81447 DELTA DENTAL AUG 08 -DENTAL PREMIUMS 001 21104 1 2,861.43 $2,861.43 8/7/2008 81448 DIVERSIFIED PARATRANSIT INC DIAMOND RIDE -APR 08 1125553 45529 43,645.69 $81,151.51 8/7/2008 DIVERSIFIED PARATRANSIT INC DIAMOND RIDE -MAY 08 1125553 45529 37,505.82 8/7/2008 81449 DMS CONSULTANTS CIVIL ENGINEERS INC ADMIN FEE -EN 08-608 001 34650 -456.50 $4,565.00 8/7/2008 DMS CONSULTANTS CIVIL ENGINEERS INC ADMIN FEE -EN 08-608 001 23012 456.50 8/7/2008 DMS CONSULTANTS CIVIL ENGINEERS INC PROF.SVCS-EN 08-608 001 23012 4,565.00 Page 9 City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 Check Date ICheckNumberl Vendor Name I Transaction Description I Fund/ Dept I Acct # I Amount I Total Check Amount 8/7/2008 1 81450 MALI DONG RECREATION REFUND 1 001 1 34780 1 85.00 $85.00 8/7/2008 1 81451 EDFUND SLRY ATTCHMT-PP 16/08 1 001 1 21114 1 115.02 $115.02 8/7/2008 81452 EVERGREEN INTERIORS ADDL PLANT SERVICE -DBC 0015333 41200 55.00 $367.00 8/7/2008 1 EVERGREEN INTERIORS PLANT SERVICE -DBC 0015333 45300 177.00 8/7/2008 EVERGREEN INTERIORS PLANT SERVICE -HERITAGE 0015340 45300 135.00 8/7/2008 81453 EXCEL LANDSCAPE LNDSCAPE MAINT-DIST 38 1385538 45500 9,428.06 $25,182.88 8/7/2008 1 EXCEL LANDSCAPE LNDSCAPE MAINT-DIST 39 1395539 45500 11,610.95 8/7/2008 EXCEL LANDSCAPE LNDSCAPE MAINT-DIST 41 1415541 45500 4,143.87 8/7/2008 1 81454 175 NETWORKS INC COMP MAINT SVCS -08/09 1 0014070 1 42205 1 2,207.451 $2,207.45 8/7/2008 81455 HALL & FOREMAN, INC. EXPRESS MAIL -GENERAL 0014090 42120 131.12 $229.19 8/7!2008 1 IFEDEX FEDEX EXPRESS MAIL -GENERAL 0014090 42120 98.07 8!7/2008 1 81456 JDANIEL GARCIA ICONTRACT CLASS -SUMMER 1 0015350 1 45320 1 1,632.00 $1,632.00 8/7/2008 1 81457 PAMELA GEE RECREATION REFUND 1 001 1 34780 1 86.00 $86.00 8/7/2008 1 81458 1GLOBALSTAR USA SATELITE PH SVCS -EM PREP 1 0014440 1 42125 1 3,369.27 $3,369.27 8/7/2008 1 81459 ICHAD GONELLA CONTRACT CLASS -SUMMER 1 0015350 1 45320 1 1,224.00 $1,224.00 8/7/2008 1 81460 JGOVPARTNER REQUEST PARTNER SVCS -AUG 1 0014070 1 44030 1 850.001 $850.00 8/7/2008 81461 HALL & FOREMAN, INC. PROF.SVCS-EN 07-582 001 23012 466.00 $4,132.55 8/7/2008 HALL & FOREMAN, INC. ADMIN FEE -EN 07-582 001 23012 116.50 8/7/2008 HALL & FOREMAN, INC. PROF.SVCS-EN 08-608 001 23012 3,511.22 8/7/2008 HALL & FOREMAN, INC. ADMIN FEE -EN 08-608 001 23012 351.12 8/7/2008 HALL & FOREMAN, INC. PROF.SVCS-EN 07-582 001 23012 155.33 8/7/2008 HALL & FOREMAN, INC. ADMIN FEE -EN 07-582 001 23012 38.83 8/7/2008 HALL & FOREMAN, INC. ADMIN FEE -EN 07-582 001 34650 -38.83 8/7/2008 HALL & FOREMAN, INC. ADMIN FEE -EN 07-582 001 34650 -116.50 817/2008 IHALL & FOREMAN, INC. JADMIN FEE -EN 08-608 001 1 34650 1 -351.12 Page 10 City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 8/7/2008 81463 HOME DEPOT CREDIT SERVICES SUPPLIES -GENERAL 0014090 1 41200 1 44.97 $252.37 Check Date Check Number Vendor Name SUPPLIES -PARKS Transaction Description 1 42210 Fund/ Dept Acct # Amount Total Check Amount INLAND VALLEY DAILY BULLETIN LEGAL AD -PUBLIC HEARING 1 0014030 1 42115 1 107.501 $107.50 8/7/2008 $150.00 8/7/2008 1 81462 DEBBIE HENDERSON CONTRACT CLASS -SUMMER 0015350 45320 150.001 8/7/2008 81463 HOME DEPOT CREDIT SERVICES SUPPLIES -GENERAL 0014090 1 41200 1 44.97 $252.37 8/7/2008 1 HOME DEPOT CREDIT SERVICES SUPPLIES -PARKS 0015340 1 42210 1 207.40 8/7/2008 1 81464 BEVERLY HOSHI IFACILITY REFUND -DBC 1 001 1 23002 1 545.00 $545.00 8/7/2008 LEIGHTON & ASSOCIATES, INC. PROF.SVCS-EN 07-595 001 23012 1,052.50 8/7/2008 1 81465 INLAND VALLEY DAILY BULLETIN LEGAL AD -PUBLIC HEARING 1 0014030 1 42115 1 107.501 $107.50 8/7/2008 LEIGHTON & ASSOCIATES, INC. ADMIN FEE -EN 07-582 001 34650 -70.20 8/7/2008 1 81466 IKIDS CAN DO GYMNASTICS ICONTRACT CLASS -SUMMER 1 0015350 1 45320 1 990.00 $990.00 817/2008 LEIGHTON & ASSOCIATES, INC. PROF.SVCS-EN 07-582 1 001 23012 390.00 1 1 8/7/2008 1 81467 ROSE KIM RECREATION REFUND 1 001 1 34760 1 45.001 $45.00 8/7/2008 1 81468 LA DATA SECURITY CORP DATA STORAGE SVCS -JULY 1 0014070 1 45000 1 600.00 $600.00 8/7/2008 81469 LEIGHTON & ASSOCIATES, INC. ADMIN FEE -EN 07-582 001 23012 70.20 51,442.50 8/7/2008 LEIGHTON & ASSOCIATES, INC. PROF.SVCS-EN 07-595 001 23012 1,052.50 8/7/2008 81471 LEIGHTON & ASSOCIATES, INC. ADMIN FEE -EN 07-595 001 23012 189.45 $45.00 8/7/2008 LEIGHTON & ASSOCIATES, INC. ADMIN FEE -EN 07-582 001 34650 -70.20 8/7/2008 81472 LEIGHTON & ASSOCIATES, INC. ADMIN FEE -EN 07-595 001 34650 -189.45 $372.00 817/2008 LEIGHTON & ASSOCIATES, INC. PROF.SVCS-EN 07-582 1 001 23012 390.00 1 1 817/2008 1 81470 LEWIS ENGRAVING INC. JENGRAVING SVCS -CITY TILE 1 0014090 1 42113 1 19.491 $19.49 817/2008 1 81471 BENNY LIANG P & R COMM -7/24 1 0015350 1 44100 1 45.00 $45.00 817/2008 1 81472 ISHERI LIEBE ICONTRACT CLASS -SUMMER 1 0015350 1 45320 1 372.00 $372.00 817/2008 1 81473 ILIVESOUND CONCEPTS ISOUND SYS -CONCERTS 1 0015350 1 45305 1 620.001 $620.00 8/7/2008 1 81474 JDANTE MARIANO IFACILITY REFUND -DBC 1 001 1 23002 1 100.00 $100.00 8/7/2008 1 81475 IKAREN MAY ICONTRACT CLASS -SUMMER 0015350 45320 475.201 $475.20 8/7/2008 1 81476 IMELISSA MCBRIDE IRECREATION REFUND 001 1 23002 1 50.001 $50.00 Page 11 City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 8/7/2008 81477 ANIL MEHTA FACILITY REFUND -DBC 001 36615 1 400.001$400.00 8/7/2008 1 81478 MOBILE RELAY ASSOCIATES INC REPEATER SVCS-EOC 1 0014440 1 42130 1 78.75 $78.75 8/7/2008 PERS RETIREMENT FUND RETIRE CONTRIB-ER 001 21109 15,336.43 8/7/2008 1 81479 TED OWENS P & R COMM -7/24 1 0015350 1 44100 1 45.00 $45.00 8/7/2008 1 81480 PAETEC COMMUNICATIONS INC. LONG DIST PH SVCS-JUL/AUG 1 0014090 1 42125 1 793.77 $793.77 8/7/2008 1 81481 NASREEN PAREKH RECREATION REFUND 1 001 1 34780 1 75.00 $75.00 8/7/2008 81482 PERS RETIREMENT FUND RETIRE CONTRIB-EE 001 21109 10,002.30 $25,386.16 8/7/2008 PERS RETIREMENT FUND RETIRE CONTRIB-ER 001 21109 15,336.43 8/7/2008 81484 PERS RETIREMENT FUND SURVIVOR BENEFIT 001 21109 47.43 $48.00 817/2008 1 81483 IPLANET AID INC REFUND -PERMIT 1 001 1 34430 1 60.00 $60.00 8/7/2008 ILYNDSEY REASIN FACILITY REFUND -DBC 001 23004 1 5.65 817/2008 1 81484 ISANDRA PLEULER DWYER RECREATION REFUND 1 001 1 34730 1 48.00 $48.00 8/7/2008 1 81485 JAHMAD QAZA FACILITY REFUND -DBC 1 001 1 36615 1 200.00 $200.00 8/7/2008 1 81486 IRASHIDA RAFIQ FACILITY REFUND -DBC 1 001 1 23002 1 500.00 $500.00 817/2008 81487 LYNDSEY REASIN FACILITY REFUND -DBC 001 23002 550.00 $555.65 8/7/2008 ILYNDSEY REASIN FACILITY REFUND -DBC 001 23004 1 5.65 817/2008 1 81488 MONDO REYES RECREATION REFUND 1 001 1 34760 1 238.32$238.32 8/7/2008 81489 INC. LASER REPAIR-SHERIFF1264411 1 0015350 42200 910.00 $995.00 817/2008 JRHF RHF INC. LASER RECERT-SHERIFF 1264411 42200 1 85.00 1 8/7/2008 1 81490 RUTH M. LOW P & R COMM -7/24 1 0015350 1 44100 1 45.001 $45.00 8/7/2008 1 81491 MARGARET SEARCY RECREATION REFUND 1 001 1 34780 1 150.00 $150.00 8/7/2008 1 81492 KAY SHAHBAZI FACILITY REFUND -DBC 001 23002 1 350.00 $350.00 8/7/2008 1 81493 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 41 1 1415541 1 42126 1 190.831 $5,624.16 Page 12 City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 Check Date Check Number Vendor Name SOUTHERN CALIFORNIA EDISON Transaction Description Fund/ Dept Acct # Amount Total Check Amount 8/7/2008 81493... ELECT SVCS -PARKS 0015340 42126 4,556.80 $5,624.16 ... 8/7/2008 8/7/2008 1 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 38 1385538 42126 34.47 332.15 817/2008 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 38 1385538 42126 403.80 817/2008 817/2008 1 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 39 1395539 42126 325.78 925.00 8/7/2008 SOUTHERN CALIFORNIA EDISON ELECT SVCS-TRFFC CONTRL 0015510 42126 112.48 8/7/2008 1 81494 ISTATE DISBURSEMENT UNIT ISLRY ATTCHMT-BY0426064 1 001 1 21114 1 100.001 $100.00 817/2008 THE COMDYN GROUP INC PROF.SVCS-WK 7/18 0014070 44000 975.00 8/7/2008 1 81495 ISTATE DISBURSEMENT UNIT ISLRY ATTCHMT-0000932977 1 001 1 21114 1 332.15 $332.15 817/2008 1 81496 ISUNSHINE SENIORS ASSOCIATION REIMB-CLUB INSURANCE 1 1255215 1 44000 1 925.00 $925.00 8/7/2008 1 81497 IMICHELLE TAN IFACILITY REFUND -DBC 1 001 1 23002 1 350.001 $350.00 8/7/2008 1 81498 IRESTY TANAG IFACILITY REFUND -DBC 1 001 136615 1 400.00 $400.00 8(7/2008 81499 THE COMDYN GROUP INC PROF.SVCS-WK 7/18 0014070 44000 520.80 $4,058.30 817/2008 THE COMDYN GROUP INC PROF.SVCS-WK 7/18 0014070 44000 975.00 877/2008 81501 THE COMDYN GROUP INC PROF.SVCS-WK 7/18 0014070 44000 2,562.50 $400.00 8/7/2008 1 81500 INEHATHIGALE IFACILITY REFUND -DBC 1 001 1 23002 1 100.00 $100.00 8/7/2008 IVERIZON CALIFORNIA IPH.SVCS-PETERSON PK 0015340 1 42125 1 87.91 8/7/2008 1 81501 IJOYCE AN THOMAS IFACILITY REFUND -DBC 1 001 1 36615 1 400.001 $400.00 817/2008 1 81502 ITIME WARNER JINTERNET SVCS -HERITAGE PK 1 0015340 1 42126 1 116.011 $116.01 8/7/2008 1 81503 ITIME WARNER IMODEM SVCS -COUNCIL 1 0014010 1 42130 1 44.95 $44.95 8/7/2008 1 81504 JTRIFYTT SPORTS ICONTRACT CLASS -SUMMER 1 0015350 1 45320 1 405.001 $405.00 8/7/2008 1 81505 JUNITED PARCEL SERVICE 1EXPRESS MAIL -GENERAL 1 0014090 1 42120 1 23.361 $23.36 8/7/2008 1 81506 IVANTAGEPOINT TRNSFR AGNTS-303248 8/6/08-P/R DEDUCTIONS 1 001 1 21108 1 28,228.69 $28,228.69 8/7/2008 81507 VERIZON CALIFORNIA PH.SVCS-DBC 0015333 1 42125 1 258.42 $346.33 8/7/2008 IVERIZON CALIFORNIA IPH.SVCS-PETERSON PK 0015340 1 42125 1 87.91 Page 13 City of Diamond Bar - Check Register 07/31/08 thru 08/13/08 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 817/2008 81508 MARILYN WALKER IFACILITY REFUND -DBC 001 23002 100.00 $100.00 8/7/2008 1 81509 ICINDY WANG RECREATION REFUND 1 001 1 34780 1 40.00 $40.00 8/7/2008 81510 WILLDAN GEOTECHNICAL ADMIN FEE -EN 07-599 001 34650 -66.60 $370.00 8/7/2008 WILLDAN GEOTECHNICAL PROF.SVCS-EN 07-599 001 23012 370.00 8/7/2008 81512 WILLDAN GEOTECHNICAL ADMIN FEE -EN 07-599 001 23012 66.60 $145.00 817/2008 1 81511 IROBERT YAMAOKA FACILITY REFUND -HERITAGE 1 001 23002 1 200.00 $200.00 8/7/2008 1 81512 OINA YOUNG RECREATION REFUND 001 34760 1 145.001 $145.00 $1,077,058.88 Page 14 Agenda # 6. 4 Meeting Date: August 19, 2008 CITY COUNCIL AGENDA REPORT 9 j9 TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Mana ^e TITLE: A RESOLUTION ACCEPTING TH GRANT OF EASEMENT FOR THE OPERATION AND MAINTENANCE OF THE TRAFFIC SIGNAL LOCATED AT THE SOUTH WEST CORNER OF THE INTERSECTION OF DIAMOND BAR BLVD./ SUGARPINE LANE AT THE MAIN ENTRANCE OF DIAMOND HILLS PLAZA. RECOMMENDATION: Adopt Resolution and authorize the City Manager to sign the Grant of Easement. FINANCIAL IMPACT: This action has no financial impact on the City. BACKGROUND/DISCUSSION: During the rehabilitation of the Country Hills Towne Center, now the Diamond Hills Plaza, certain traffic signal improvements were required for the signals along Diamond Bar Blvd. at Sugarpine Lane to accommodate the projected traffic impacts of the newly revitalized shopping center. It was discovered that the existing traffic signal at the south west corner of Diamond Bar Blvd. and Sugarpine Lane is located on private property outside of the existing public right-of-way. It was determined that an easement would be necessary for the continued maintenance and operation of the existing traffic signal, all associated signage, underground conduit and traffic signal wiring as well as the existing curb ramp. The owner of the property, Country Hills Holdings, LLC has agreed to grant this easement to the City. PREPARED BY: Kimberly Molina, Associate Engineer RE"BY: vid G. Liu, Director of Public Works Date Prepared: August 12, 2008 Attachments: Exhibit with current ROW limits Resolution 2008 -XX Grant of Easement ! I N i►' L.L.,;`� Lam, F 00 I - , F �• R1-1 00 iSo _ N -- - — R 1-1 26' �I 26' -- 27' 15'I 15' 115' 15'—� - 26' —� 26' i-I----� f-� - I� R10-7(MOD) 3 ' -73 1� I ii -- 1 LI M ITS of E.AUM i R6-2 1ST► M, RAW S I -+ I �hum LVO ------------------ A F b S UGARPINE PLACE RESOLUTION NO. 08 -XX A RESOLUTION OF THE CITY COUNCIL OF DIAMOND BAR ACCEPTING THE GRANT OF EASEMENT FOR THE OPERATION AND MAINTENANCE OF THE TRAFFIC SIGNAL LOCATED AT THE SOUTH WEST CORNER OF THE INTERSECTION OF DIAMOND BAR BLVD./ SUGARPINE LANE AT THE MAIN ENTRANCE OF DIAMOND HILLS PLAZA The City of Diamond Bar does hereby find, order and resolve as follows: A. RECITALS: (i.) WHEREAS,COUNTRY HILLS HOLDING, LLC„ a Delaware limited liability company, has granted the City of Diamond Bar an nonexclusive easement more particularly described in the Grant of Easement for Traffic Signal Location, Operation and Maintenance attached hereto; (ii.) WHEREAS, the City Engineer has reviewed, approved and recommends acceptance of the Grant of Easement for Traffic Signal Location, Operation and Maintenance; and (iii.) WHEREAS, all legal prerequisites to the acceptance of this grant and the adoption of this resolution have occurred. B. RESOLUTION: NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR DOES HEREBY RESOLVE: Section 1. The City Council of the City of Diamond Bar does hereby find that all of the facts set forth in the recitals of this resolution are true and correct. Section 2. The City Council of the City of Diamond Bar does hereby accept the Grant of Easement for Traffic Signal Location, Operation and Maintenance attached hereto from Country Hills Holdings, LLC and consents to recordation of this Grant of Easement for Traffic Signal Location, Operation and Maintenance. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 19th day of August, 2008. Jack Tanaka, Mayor ATTEST: Tommye A. Cribbins, City Clerk WHEN RECORDED MAIL TO: CITY OF DIAMOND BAR 21825 Copley Drive Diamond Bar, CA 91765-4178 Attention: CITY CLERK Space Above this Line for Recorder's Use) MAIL TAX STATEMENTS TO: CITY OF DIAMOND BAR Exempt from Recording Fees Governmental 21825 Copley Drive Acquisition Government Code Section 27383 Diamond Bar, CA 91765-4178 Attention: CITY MANAGER GRANT OF EASEMENT FOR TRAFFIC SIGNAL LOCATION, OPERATION AND MAINTENANCE THIS GRANT OF EASEMENT FOR TRAFFIC SIGNAL LOCATION, OPERATION AND MAINTENANCE ("Grant of Easement") is made and executed as of August 19, 2008, by and between Country Hills Holding LLC ("Grantor'), and CITY OF DIAMOND BAR, a municipal corporation ("Grantee"), pursuant to the terms and conditions set forth below. RECITALS 1. WHEREAS, Grantor is the owner of certain real property described more particularly on Exhibit A hereto ("Property"), and is developing the Property as a shopping center; 2. WHEREAS, Grantee operates traffic signal equipment on the portion of the Property described on Exhibit B hereto (the "Easement Area") for the benefit of the traveling public, including motorists entering and exiting the Property, and Grantor has agreed to grant an easement over the Easement Area to permit the City access to the easement area on the Easement Area to maintain and operate its traffic signal equipment; and 3. WHEREAS, Grantor desires to convey to Grantee a perpetual easement on the Easement Area for placement, maintenance and operation of subterranean and above -surface traffic signal equipment, subject to the terms and conditions as more specifically set forth below. AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals which are incorporated herein by this reference, it is agreed by the parties hereto as follows: Easement. 1.1 For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Grantor does hereby grant unto Grantee a non-exclusive easement for placement, construction, maintenance and operation of traffic signal equipment ("Easement"), including the right to enter the Easement Area for the purposes of maintaining, replacing and GRANT OF EASEMENT FOR TRAFFIC SIGNAL LOCATION, OPERATION AND MAINTENANCE - Page 1 DAL 76792354v2 operating its equipment, as more particularly described on Exhibit "C" attached hereto and incorporated herein by reference. 1.2 Grantee shall be solely responsible for all costs related to any maintenance activities it undertakes related to the Easement. 1.3 Grantor shall not place, maintain or erect any building upon the Easement Area, and shall not undertake any other activity on the Property that would obstruct Grantee's access to the Easement Area; provided, Grantor may use the Easement Area for vehicular and pedestrian access, including paving, sidewalks, crosswalks and similar improvements, signs, landscaping and other improvements in accordance with applicable codes and regulations. 1.4 Grantee shall provide Grantor, or Grantor's successor, advance written notice of any maintenance activities within the Easement Area no less than forty-eight (48) hours prior to entering the Easement Area; provided, however, that no notice shall be required in the event of an emergency resulting from malfunction of its equipment. Except in the event of an emergency, Grantee agrees to conduct maintenance and repair activities in the Easement Area so as to minimize interruption of business for the Shopping Center, including conducting such activities (i) only on weekdays (excluding holidays) and (ii) in such a manner so that not more than one traffic lane is obstructed at any time. 1.5 Grantee shall take all reasonable measures and exercise best efforts to prevent damage to the Property during its maintenance activities, if any, and shall promptly, at its sole expense, restore all asphalt, concrete, turf, trees and other landscaping improvements within the Property damaged by Grantee, its agents or employees, in the exercise of the rights hereunder, to the same or better condition as such improvements and facilities existed immediately prior to the activity resulting in the disturbance of the affected portion of the Property. 2. Entire Agreement. This agreement constitutes the entire agreement between the parties pertaining to the subject matter hereof. 3. No Waiver. No waiver of default under this agreement by Grantor or Grantee shall be implied from any omission by any party to take any action with respect to such default if such default continues or is repeated. 4. Runs with the Land; Successors and Assigns. Grantor intends that this Agreement and the Easement shall run with the land, and the agreements set forth herein shall be binding upon, and inure to the benefit of Grantor, Grantee and their respective heirs, successors and assigns. 5. Counterpart Signatures. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement. 6. Notices and Addresses. All notices, demands, requests or replies provided for or permitted by this Agreement shall be in writing and may be delivered by any one of the following methods: (i) by personal delivery with receipt acknowledged in writing; (ii) by deposit with the United States Postal Service as certified or registered mail, return receipt requested, postage prepaid to the addresses stated below; or (iii) by deposit with an overnight express delivery service with receipt acknowledged in writing. Notice deposited with the United States Postal GRANT OF EASEMENT FOR TRAFFIC SIGNAL LOCATION, OPERATION AND MAINTENANCE - Page 2 DAL 76792354v2 Service in the manner described above shall be deemed effective upon return of the receipt. Notice by overnight express delivery service shall be deemed effective one (1) business day after deposit with the express delivery service. Notice by personal delivery service shall be deemed effective at the time of personal delivery. For purposes of notice, demand, request or reply, the addresses of Grantor and Grantee shall be: GRANTOR: Country Hills Holding LLC c/o Sarofim Realty Advisors 8115 Preston road, Suite 400 Dallas, Texas 75225 Attn: Bob Poynor GRANTEE: City of Diamond Bar 21825 Copley Drive Diamond Bar, California 91765-4178 Attention: City Manager With a copy to: Jenkins & Hogin 1230 Rosecrans Avenue, Ste. 110 Manhattan Beach, California 90266 Attention: Michael Jenkins IN WITNESS WHEREOF, Grantor and Grantee have caused this Grant of Easement to be executed as of the date first written above. "GRANTOR": COUNTRY HILLS HOLDING LLC, a Delaware limited liability company By: Name: Jeffrey C. Chavez Its: Senior Vice President "GRANTEE": CITY OF DIAMOND BAR, a municipal corporation ATTEST: By: City Clerk, City of Diamond Bar By: Name: James DeStefano Its: City Manager GRANT OF EASEMENT FOR TRAFFIC SIGNAL LOCATION, OPERATION AND MAINTENANCE - Page 3 DAL 76792354v2 STATE OF TEXAS ) )Ss. COUNTY OF DALLAS ) On August _, 2008, before me, 'personally appeared Jeffrey C. Chavez, personally known to me (or proved to. me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entity on behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On August _, 2008, before me, , personally appeared James DeStefano, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entity on behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public STATE OF CALIFORNIA ) )Ss. COUNTY OF LOS ANGELES ) On 2008, before me, , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person or the entity on behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public GRANT OF EASEMENT FOR TRAFFIC SIGNAL LOCATION, OPERATION AND MAINTENANCE - Page 4 DAL 76792354v2 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY PARCEL A: PARCELS 2, 3, 7, 8, 9, 10, 12, 13, 14 and 15, INCLUSIVE, OF PARCEL MAP NO. 18722 CITY OF DIAMOND BAR, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 247 AT PAGES 28 TO 31, INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. Ike\'Z�d� PARCEL "A" AS SHOWN ON CERTIFICATE OF COMPLIANCE NO. 06-001 AS EVIDENCED BY DOCUMENT RECORDED ON NOVEMBER 17, 2006 AS INSTRUMENT NO. 06-2560828 OF OFFICIAL RECORDS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: ALL THAT CERTAIN LAND IN THE CITY OF DIAMOND BAR, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA BEING A PORTION OF PARCEL 4, ALL OF PARCEL 5, AND A PORTION OF PARCEL 6 OF PARCEL MAP NO. 18722 AS PER MAP FILED IN BOOK 247 AT PAGES 28 TO 31, INCLUSIVE, OF PARCEL MAPS, RECORDS OF SAID COUNTY AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST SOUTHERLY CORNER OF SAID PARCEL 5, BEING A POINT ON THE NORTHEASTERLY LINE OF COLD SPRING LANE, 60.00 FEET WIDE AS SHOWN ON SAID PARCEL MAP; THENCE ALONG SAID NORTHEASTERLY LINE, NORTH 1611 41' 38" WEST 44.00 FEET TO A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 240.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE AND NORTHEASTERLY LINE THROUGH A CENTRAL ANGLE OF 130 28' 25". AN ARC DISTANCE OF 56.44 FEET TO A POINT ON A NON -TANGENT LINE, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 590 49' 57" EAST; THENCE ALONG SAID NON - TANGENT LINE NORTH 37❑ 10' 02" EAST 170.31 FEET; THENCE NORTH 52❑ 49' 58" WEST 118.93 FEET TO THE NORTHWESTERLY LINE OF SAID PARCEL MAP; THENCE ALONG SAID LINE, NORTH 3311 18' 22" EAST 36.33 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 6625.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 02❑ 34'2911, AN ARC DISTANCE OF 297.71 FEET TO A POINT ON A NON -TANGENT LINE, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 5411 07' 09" WEST; THENCE ALONG SAID NON -TANGENT LINE, SOUTH 521149'58" EAST 212.73 FEET; THENCE SOUTH 37❑ 10,021, WEST 75.92 FEET TO THE NORTHERLY BOUNDARY LINE OF SAID PARCEL 5, THENCE ALONG THE NORTHERLY AND SOUTHEASTERLY LINES OF SAID PARCEL 5 THE FOLLOWING SEVEN (7) COURSES: SOUTH 52❑ 49'58" EAST 126.40 FEET; THENCE NORTH 37❑ 10'02" EAST 29.04 FEET; THENCE SOUTH 521149'58" EAST 79.70 FEET; THENCE SOUTH 37❑ 10'02" WEST 249.18 FEET; THENCE NORTH 520 49'58" WEST 191.10 FEET; THENCE SOUTH 37❑10' 02" WEST 249.98 FEET; THENCE SOUTH 730 18'22" WEST 14.24 FEET TO THE POINT OF BEGINNING. DAL 76792354v2 Exhibit "A" - Page 1 PARCEL C: PARCEL "B" AS SHOWN ON CERTIFICATE OF COMPLIANCE NO. 06-001 AS EVIDENCED BY DOCUMENT RECORDED ON NOVEMBER 17, 2006 AS INSTRUMENT NO. 06-2560828 OF OFFICIAL RECORDS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: ALL THAT CERTAIN LAND IN THE CITY OF DIAMOND BAR, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA BEING A PORTION OF PARCEL 4 OF PARCEL MAP NO. 18722 AS PER MAP FILED IN BOOK 247 AT PAGES 28 TO 31, INCLUSIVE, OF PARCEL MAPS, RECORDS OF SAID COUNTY AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST WESTERLY CORNER OF SAID PARCEL 4 BEING A POINT ON THE NORTHEASTERLY LINE OF COLD SPRING LANE, 60.00 FEET WIDE, AS SHOWN ON SAID PARCEL MAP; THENCE ALONG THE NORTHWESTERLY LINE OF SAID PARCEL 4, NORTH 33❑ 18'22" EAST 152.67 FEET; THENCE LEAVING SAID NORTHWESTERLY LINE, SOUTH 52❑ 49' 58" EAST 118.93 FEET; THENCE SOUTH 37❑ 10' 02" WEST 170.31 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 240.00 FEET, SAID CURVE ALSO BEING THE NORTHEASTERLY LINE OF SAID COLD SPRING LANE, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 59[149, 57" EAST; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 26-7 31' 35" AN ARC DISTANCE OF 111.11 FEET TO THE POINT OF BEGINNING. PARCEL D: PARCEL "C" AS SHOWN ON CERTIFICATE OF COMPLIANCE NO. 06-001 AS EVIDENCED BY DOCUMENT RECORDED ON NOVEMBER 17, 2006 AS INSTRUMENT NO. 06-2560828 OF OFFICIAL RECORDS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: ALL THAT CERTAIN LAND IN THE CITY OF DIAMOND BAR, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA BEING A PORTION OF PARCEL 6 OF PARCEL MAP NO. 18722 AS PER MAP FILED IN BOOK 247 AT PAGES 28 TO 31, INCLUSIVE, OF PARCEL MAPS, RECORDS OF SAID COUNTY AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST NORTHERLY CORNER OF SAID PARCEL 6 BEING A POINT ON THE NORTHWESTERLY LINE OF SAID PARCEL MAP; THENCE SOUTH 52❑ 48'13" EAST 240.00 FEET; THENCE SOUTH 37❑ 10'02" WEST 64.69 FEET; THENCE SOUTH 52❑ 48,13" EAST 180.37 FEET TO THE SOUTHEASTERLY LINE OF SAID PARCEL 6; THENCE ALONG SAID SOUTHEASTERLY LINE SOUTH 37❑ 10'02" WEST 87.23 FEET; THENCE NORTH 52❑ 49' 58" WEST 79.70 FEET; THENCE SOUTH 37❑ 10' 02" WEST 29.04 FEET; THENCE NORTH 52❑ 49' 58" WEST 126.40 FEET; THENCE NORTH 37❑ 10' 02" EAST 75.92 FEET; THENCE NORTH 52❑ 49' 58" WEST 212.73 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 6625.00 FEET, SAID CURVE ALSO BEING THE NORTHWESTERLY LINE OF SAID PARCEL MAP, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 54❑ 07' 09" WEST; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 00❑ 54'37", AN ARC DISTANCE OF 105.25 FEET TO THE POINT OF BEGINNING. Exhibit "A" - Page 2 DAL 76792354v2 EXHIBIT "B" EASEMENT AREA CITY OF DIAMOND BAR EASEMENT EXHIBIT B DESCRIPTION FOR EASEMENT BEING AN EASEMENT OVER A PORTION OF PARCELS 7, 8 AND 14 OF PARCEL MAP NO. 18722 RECORDED IN BOOK 247, PAGES 28-31 OF PARCEL MAPS, RECORDS OF LOS ANGELES COUNTY, FURTHER DESCRIBED AS FOLLOWS: BEGINNING AT THE EASTERLY MOST CORNER OF PARCEL 8 OF SAID PARCEL MAP NO. 18722, SAID POINT ALSO BEING ON THE WESTERLY UNE OF DIAMOND BAR BLVD. AS SHOWN ON SAID MAP; THENCE ALONG SAID WESTERLY LINE, SOUTH 36'18'18" WEST, 66.98 FEET TO AN ANGLE POINT THEREIN; THENCE SOUTH 52'49'58" EAST, ALONG SAID LINE, 36.06' TO AN ANGLE POINT THEREIN; THENCE CONTINUING ALONG SAID WESTERLY LINE ALONG A NON -TANGENT CURVE, CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 6049.00 FEET AND AN INTITIAL RADIAL BEARING OF NORTH 50'55'46" WEST; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 00'37'32" AN ARC DISTANCE OF 66.05 FEET; THENCE LEAVING SAID WESTERLY LINE NORTH 52'49'58" WEST, 25.23 FEET; THENCE NORTH 37'10'02" EAST, 22.99 FEET; THENCE NORTH 52'49'58" EAST, 135.00 FEET; THENCE NORTH 37'10'02" EAST, 110.00 FEET; THENCE SOUTH 52'49'58" EAST, 125.00 FEET TO THE POINT OF BEGINNING. SEE EXHIBIT "A" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART THEREOF. Exhibit "B" - Page 1 SHEET 1 OF 1 CITY OF DIAMOND BAR EASEMENT EXHIBIT A BASIS OF BEARINGS THE BASIS OF BEARINGS USED ON THIS EASEMENT DESCRIPTION IS THE. EASTERLY LINE OF PARCEL 8 BEARING SOUTH 52'49'58" EAST AS SCALE: 1 " = 40' SHOWN ON PARCEL MAP NO. 18722 IN BOOK 247, PAGES 28 TO 31, OF PARCEL MAPS, RECORDS OF LOS ANGELES COUNTY. N.3i1002'E. 110.00' �U 4 0 0 M l 00o z Lo rn r� 't[04lz NZ W� s� aauF �9 r Flo No. 7709 EKP.12131/06 9�OF �0 D.C. QUEYREL LS 77 DAL 76792354v2 g Ld Exhibit "B" - Page 2 ao ZOD } n lun -a�ppp J- DIAMOND gAR BLVD. LEGEND: INDICATES EASEMENT AREA R/W INDICATES STREET RIGHT OF WAY It PROPERTY LINE Exhibit "B" - Page 2 EXHIBIT "C" Equipment in Easement Area Traffic signal pole (1 ea), associated vehicle heads (2 ea), and associated underground traffic signal conduit and wiring located at the south-west corner of the intersection of Diamond Bar Blvd. and Sugar Pine Lane; curb ramp, sidewalk and curb and gutter located at the south-west corner of the intersection Diamond Bar Blvd. and Sugar Pine Lane; regulatory signs (4ea R26(S)(CA)signs, 1 ea R61-7(CA), 1 ea R3 -7R, 1 ea R5-1) along the northern and southern curbs of the main entrance along Diamond Bar Blvd. within the easement area. DAL 76792354v2 Exhibit "C" - Page 1 CITY COUNCIL Agenda # 6. -5 Meeting Date: 08/19/08 AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Manaai_�o TITLE: APPROVAL OF AMENDMENT #3-A TO CONTRACT WITH WEST COAST ARBORISTS FOR CITY-WIDE TREE MAINTENANCE AND WATERING SERVICES IN THE CITY OF DIAMOND BAR FOR THE 2007/08 FISCAL YEAR ADDING $3,300 TO THE AUTHORIZED AMOUNT OF $238,050 RESULTING IN A TOTAL NOT TO EXCEED AMOUNT OF $241,350. RECOMMENDATION: Approve. FINANCIAL IMPACT: Approval of this contract amendment will authorize staff to expend an additional $3,300 for City -Wide Tree Maintenance and Watering Services during the 2007/08 fiscal year, for a total authorization of $241,350. Funds for this increase are included in the 2007/08 FY budget and will be transferred to the Tree Maintenance / Watering account from the Vegetation Control and Parks Operations accounts as follows: Funding Source Current Funding Adiustment Adjusted Budget Vegetation Control (45508) 88,900 (2,500) 85,900 Parks Operations (42210) 263,250 (800) 262,450 Tree Maintenance / Watering 238,050 3,300 241,350 BACKGROUND / DISCUSSION: On May 1, 2007, the City Council approved contract Amendment #3 to extend the contract with West Coast Arborists for city-wide tree maintenance services for the 2007/08 fiscal year in the amount of $238,050. Due to additional work requested by staff in June, 2008, West Coast Arborist exceeded the contract amount by $3,300. Staff is seeking City Council approval to increase the contract amount by $3,300, for a total authorization of $241,350 for the 2007/08 Fiscal Year. Funds for this increase are available from unexpended funds in the 2007/08 FY budget. Attachment: Amendment #3-A to Tree Maintenance Services Contract for the period of July 1, 2007 — June 30, 2008 PREPAREJ),AND REVIEWED BY: Community Services Director AMENDMENT #3-A TO CONTRACT AGREEMENT THIS CONTRACT AMENDMENT is made this 19th day of August, 2008 by and between the CITY OF DIAMOND BAR, a municipal corporation of the State of California ("CITY") and WESTCOAST ARBORISTS, INC, ("CONTRACTOR") Recitals: a. CITY awarded a contract to CONTRACTOR for City-wide Tree Maintenance Services on July 5, 2005 in the amount of $150,000 for the period of July 1, 2005 — June 30, 2006. b. Amendment #1 was approved on February 21, 2006 to increase tree maintenance services to the amount of $235,125. C. Amendment #2 was approved on June 20, 2006 to extend the contract for the period of July 1, 2006 — June 30, 2007 in the amount of $230,000. d. Amendment #3 was approved on May 1, 2007 to extend the term from July 1, 2007 through June 30, 2008 in the amount not to exceed $238,050 e. Parties desire to amend the contract to add $3,300 to the contract for a total authorized amount not to exceed $241,350 for the 2007/08 FY. Now, therefore, the parties agree to amend the AGREEMENT as follows: Section 1 — Contract price of AGREEMENT provided in Section 11 is amended to a not to exceed amount of $241,350 for the 2007/08 FY. Except as provided above, the AGREEMENT is in all other respects in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT #3-A TO CONTRACT AGREEMENT on the date and year first written above. ATTEST: CITY OF DIAMOND BAR A Municipal Corporation Of the State of California Signed Jack Tanaka Title: Mayor APPROVED TO FORM WESTCOAST ARBORISTS, INC. Contractor Signed Title City Attorney City Clerk Agenda # Meeting Date 6.6 August 19, 2008 CITY COUNCIL AGENDA REPORT r`�'tkxeoaa�� J8S9 TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Mana e PREPARED BY: Bob Rose, Director of Community ervices TITLE: ADOPTION OF RESOLUTION NO. 08 -XX OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR APPROVING THE APPLICATION FOR GRANT FUNDS FROM THE RECREATIONAL TRAILS PROGRAM UNDER THE "SAFE, ACCOUNTABLE, FLEXIBLE, EFFICIENT TRANSPORTATION EQUITY ACT: A LEGACY FOR USERS" FOR THE SUMMITRIDGE PARK SOUTHERN ROUTE TRAIL PROJECT. RECOMMENDATION: Adopt. BACKGROUND: The City Council adopted the Trails Master Plan in May 2001. The Summitridge Park Southern Route Trail is the undeveloped area that will link the Diamond Bar Center Trailhead to the Steep Canyon Trailhead and link with the Summitridge Park Trail and the Canyon Route Trail. This trail once developed will be accessible from Dare Court along the southern edge of the canyon below Summitridge Park. DISCUSSION: Staff is preparing the Recreational Trails Program grant application. The application is due October 1, 2008. This resolution is a required element of the grant application. RESOLUTION NO. 08 -XX RESOLUTION OF THE CITY COUNCIL OF CITY OF DIAMOND BAR APPROVING THE APPLICATION FOR GRANT FUNDS FROM THE RECREATIONAL TRAILS PROGRAM FOR THE DEVELOPMENT OF SUMMITRIDGE PARK SOUTHERN ROUTE TRAIL WHEREAS, the "Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users" provides funds to the State of California for Grants to federal, state, local and non-profit organizations to acquire, develop and/or maintain motorized and non -motorized trail Projects; and WHEREAS, the State Department of Parks and Recreation has been delegated the responsibility for the administration of the program within the State, setting up necessary procedures governing Project Application under the program; and WHEREAS, said procedures established by the State Department of Parks and Recreation require the Applicant to certify by resolution the approval of Application before submission of said Application to the State; and WHEREAS, the Applicant will enter into a Contract with the State of California to complete the Project; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Diamond Bar hereby: 1. Approves the filing of an Application for the Recreational Trails Program; and 2. Certifies that the Project is consistent with the City of Diamond Bar's general plan and 3. Certifies that the City of Diamond Bar has or will have available prior to commencement of any work on the Project included in this Application, sufficient funds to operate and maintain the Project; and 4. Certifies that the City of Diamond Bar has reviewed, understands, and agrees to the General Provisions contained in the Contract shown in the Procedural Guide; and 5. Appoints the City Manager as agent to conduct all negotiations, execute and submit all documents, including, but not limited to Applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the Project. 6. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines. Approved and Adopted the day of .2008 Jack Tanaka Mayor I, Tommye Cribbins, acting City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at a regular meeting of the City Council of the City of Diamond Bar held on day of , 2008, by the following vote: Ayes: Noes: Absent: City Clerk City of Diamond Bar CITY COUNCIL Agenda # 6.7 Meeting Date: August 19, 2008 AGENDA REPORT TO: Honorable Mayor and Members f e City Council VIA: James DeStefano, City Mana r TITLE: ADOPTION OF RESOLUTION 2 08 -XX, OPPOSING FISCALLY IRRESPONSIBLE STATE BUDGET DECISIONS THAT WOULD "BORROW" LOCAL GOVERNMENT, REDEVELOPMENT AND TRANSPORTATION FUNDS RECOMMENDATION: Adopt. FISCAL IMPACT: None. BACKGROUND / DISCUSSION: The State of California is currently facing a $15 million budget deficit. Negotiations between both sides of the aisle have remained at a stalemate well past the July 1 budget deadline, which is still without resolution. One of the proposals picking up steam in recent weeks is one that would divert Proposition IA and Proposition 42 transportation dollars from local governments to reduce the state deficit. Both Proposition I and 42 were passed overwhelmingly by the voters, with the intent to secure these dollars for local agencies to be used for local infrastructure projects, public safety, and park improvements, among other things. If the state chooses to divert these funds, Diamond Bar would lose approximately $1.4 million budgeted for this fiscal year. This loss would likely result in budget cuts and/or impacts to the General Fund reserve. State law allows for the Governor to declare a "state of fiscal hardship" which allows the state to tap these funds in the case of fiscal problems. The law requires that any funds diverted from local governments under this declaration be repaid within three years with interest. This method of "borrowing" tax dollars from local governments is not only unfair to cities, but irresponsible fiscal policy, only pushing the deficit off for another three years without resolution. The League of California Cities has organized a grass roots effort amongst its members to encourage the Legislature to develop a responsible budget plan that keeps local tax dollars where they belong. The attached resolution opposes the fiscally irresponsible practice of "borrowing" local tax dollars and requests the Legislature to balance their budget using their own funds. Prepared by: Rya McLean, Assistant to the City Manager RESOLUTION NO. 2008 - A RESOLUTION OPPOSING FISCALLY IRRESPONSIBLE STATE BUDGET DECISIONS THAT WOULD "BORROW" LOCAL GOVERNMENT, REDEVELOPMENT AND TRANSPORTATION FUNDS WHEREAS, on July 1, 2008 the State Legislature missed its Constitutional budget deadline; and WHEREAS, both the Governor and the Legislative Budget Conference Committee have recommended balanced budgets without resorting to "loans" or seizures of local government property tax, redevelopment tax increment and transportation sales tax funds; and WHEREAS, in 1952 the voters of California approved n 1952 the voters approved Article XVI, Section 16 of the California Constitution, providing for tax increment financing for community revitalization—not balancing the state budget, and the voters never authorized the legislature to take or "borrow" community redevelopment funds for state programs; and WHEREAS, in 2004 by an 84% margin of approval the voters of California approved Proposition 1A and sent a loud and unambiguous message to state leaders that they should stop the destructive and irresponsible practice of taking local government funds to finance the state budget and paper over the state deficit; and WHEREAS, in 2006 by a 77% margin of approval the voters of California also approved Proposition 1A, providing similar protections to transportation funding for state and local transportation projects, including important street maintenance and public transit programs; and WHEREAS, both ballot measures allow the Governor to declare a "severe state of fiscal hardship" and "borrow" these funds if they are repaid in three years with interest, but the Governor believes it would be irresponsible to "borrow" such funds because it would deepen the state's structural deficit and cripple local government and transportation services; and WHEREAS, refusal by the Legislature to carryout its constitutional obligation to compromise on a balanced budget is not a "severe state of fiscal hardship" and would not justify reductions in critical local services, community revitalization programs and infrastructure maintenance at a time when cities are struggling to balance their own budgets during this economic down turn; and WHEREAS, city investments in infrastructure, affordable housing and basic public safety and other community services will create needed jobs and speed our economic recovery; and WHEREAS, the Legislature should balance the state budget with state revenues and respect the overwhelming support of voters for not using local property taxes, WHEREAS, it would be the height of fiscal irresponsibility to paper over the state structural deficit with more borrowing, and Californians deserve state leaders who will tell them honestly what needs to be done to produce a balanced budget; and WHEREAS, it is time for the state of California to cut up its local government credit cards and deal with the budget deficit in a straightforward way. Balance the state budget with state funds. NOW, THEREFORE, BE IT RESOLVED, that the City of Diamond Bar hereby opposes any and all efforts by state government to "borrow" or seize local tax funds, redevelopment tax increment and transportation sales tax funds by the state government to finance state operations. Such a move would be fiscally irresponsible for the state and hamper effective local services and infrastructure investments. SECTION 1. That the City Council of the City of Diamond Bar shall adopt the Resolution and the City Clerk shall certify to the adoption. SECTION 2. That the City Council of the City of Diamond Bar asks all elected local and State officials to oppose any and all efforts by state government to "borrow" or seize local tax funds, redevelopment tax increment and transportation sales tax funds by the state government to finance state operations. Such a move would be fiscally irresponsible for the state and hamper effective local services and infrastructure investments. SECTION 3 That certified copies of the resolution be circulated to the following: League of California Cities Joe A. Gonsalves & Son PASSED, APPROVED, AND ADOPTED THIS 19th DAY OF AUGUST, 2008. Jack Tanaka, Mayor I, Tommye Cribbins, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, adopted and approved at a regular meeting of the City Council of the City of Diamond Bar held on 19th day of August, 2008, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: ATTEST: Tommye Cribbins, City Clerk City of Diamond Bar CITY COUNCIL !xPow', TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Mane ` Agenda # 6 , 8 Meeting Date: must 19, 2008 AGENDA REPORT TITLE: Adoption of Resolution No. 2008- Amending the City's Personnel Rules and Regulations and Rescinding Resolution No. 2006-39 in its Entirety RECOMMENDATION: Adopt. FINANCIAL IMPACT: The proposed modifications to the Personnel Rules and Regulations are within the allocated personnel costs adopted in the Fiscal Year 2008-2009 budget. The changes are preventative measures to reduce future unfunded liabilities. BACKGROUND/DISCUSSION: In May 2006 the City Council adopted the Personnel Rules and Regulations. The purpose of these rules is to facilitate efficient and economical services to the public and to establish lawful procedures for dealing with personnel matters. In accordance with the Personnel Rules and Regulations, any update must be amended by Resolution of the City Council. Since the initial adoption, the City has implemented a comprehensive classification and compensation plan and assessed policies and procedures to improve and better manage personnel related matters. Personnel Rules and Regulations proposed for update include the topics of compensation, classifications, and attendance and leaves. The specific Rules and Sections proposed for update are described below. Rule II — Definition of Terms, Section 15, Job Classifications: The City Council approved the Compensation Plan for Fiscal Year 2008-2009 effective July 1, 2008. In this Plan, job titles are listed with corresponding salary grades. An update is proposed to accurately reflect the recently adopted salary grade numbering system replacing an old outdated one. This change does not affect the current approved Compensation Plan, but corrects the Personnel Rules and Regulations to reflect the current practice and removes Job Classification Ranges. Rule IV — Classification, Section 4, Classification Studies: A revision was made to this section to establish that individual classification study requests must be submitted by the Department Director to Human Resources for review to determine if incumbent duties and responsibilities have substantively changed and inequitably aligned in relation to other classifications. Previously, the request was submitted directly to the City Manager. Rule V — Compensation, Section 2a, Comprehensive Compensation Survey: This section has been added to reflect City Council authorization to conduct a comprehensive compensation survey on a three (3) year cycle. The survey will be conducted to assure that employees are compensated at the median level of the survey as determined by the labor market survey cities. The survey will utilize benchmark positions and include labor market comparisons of the established survey cities. Rule V — Compensation, Section 4, Merit Step Advancement: Currently, new employees are eligible to receive a merit increase at six (6) months of employment and then not until another full year of employment and satisfactory performance evaluation. This is counterproductive to administering a merit system, provides no incentive to new employees and does not enable managers to reward excellent employees at the end of probation at twelve month mark. It is proposed that new employees be eligible for a merit step increase at six (6) months and then again at the end of probation and then annually every year thereafter with a satisfactory performance evaluation. Rule VIII — Examinations, Section 6, Post Offer Physical Examinations and Background Investigations: A recent legal ruling on drug testing restricts pre-employment substance abuse testing to positions that directly have supervision over minors, are safety sensitive or are required to operate a vehicle. Rule XII — Attendance and Leaves, Section 2b, Vacation Leave/Maximum Accrual: The maximum accrual of Vacation Leave is proposed to increase from 320 hours to 360 hours. Once 360 hours is reached the employee will cease to accrue until the leave balance is reduced below the maximum amount. The proposed change will alleviate the issue of long term employees accruing at the maximum vacation leave rate from hitting the cap and ceasing to accrue such hours. This affects long time staff that have dedicated their service to the City and by length of service accrue leave time at the maximum rate. Rule XII — Attendance and Leaves, Section 2d, Vacation Leave/Vacation Leave Cash Out Option: The proposed change increases the total number of hours allowed for a one time per year "cash out" payment from forty (40) hours to eighty (80) hours. The parameters required before the cash out is allowed remain the same. Increasing the number of hours eligible for "cash out" is intended to lower potential unfunded liability exposure in end of service payouts for employees separating or retiring from service. Rule XII — Attendance and Leaves, Section 7, Administrative Leave: This section is being updated to reflect the administrative leave hours issued to Department Directors, and designated Division Managers annually. The information cited in the current Personnel Rules and Regulations is incorrect. As a result of these improvements and updates, the City must amend the Personnel Rules and Regulations. PREPARED VWA RE PARE (A D' BY: Cl>l Vicki Cross, Human Resources Manager REVIEWED David Doyle, Assistant Oty Manager Lines Magnuson F ante Director Attachments: Resolution 2008 -XX Personnel Rules and Regulations — Rule Il, IV, V, VIII, and XII A complete copy of the City of Diamond Bar Personnel Rules and Regulations is available for review during normal business hours in the City Clerk's Office. Resolution No. 2008- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR AMENDING THE CITY'S PERSONNEL RULES AND REGULATIONS EFFECTIVE SEPTEMBER 1, 2008; AND RESCINDING RESOLUTION NO. 2006-39 IN ITS ENTIRETY. WHEREAS, the City Council of the City of Diamond Bar adopted Resolution No. 2006-39 on May 2, 2006 approving Personnel Rules and Regulations; and; WHEREAS, the purpose of the rules and regulations is to facilitate efficient and economical services to the public and to establish lawful procedures for dealing with personnel matters; and; WHEREAS, it is necessary from time to time to update the Personnel Rules and Regulations; and; WHEREAS, the rules and regulations do not create any contract of employment, expressed or implied, or any rights in the nature of a contract; WHEREAS, with the adoption of this Resoluticn, the Personnel Rules and Regulations will become effective September 1, 2008; NOW, THEREFORE BE IT RESOLVED, the City Council of the City of Diamond Bar, does hereby adopt Resolution No. 2008- amending the City's Personnel Rules and Regulations therefore rescinding Resolution No. 2006-39 in its entirety. PASSED, ADOPTED AND APPROVED this day of August 2008. Jack Tanaka, Mayor I, TOMMYE A. CRIBBINS, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, adopted and approved at a regular meeting of the City Council of the City of Diamond Bar held on the day of August 2008, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Tommye A. Cribbins, City Clerk City of Diamond Bar ... . ................. RULE 1l DEFINITION OF TERMS DEFINITION OF TERMS Unless the context indicates otherwise the following terms, whenever used in these rules, shall be defined as follows: Section 1. Advancement: A salary increase within the limits of the pay range established for the class. Section 2. Allocation: The assignment of a single position to its proper class in accordance with the duties performed, and the authority and responsibilities exercised. Section 3. Appointing Authority: The person having the authority to appoint or remove a person from City employment. This is the City Manager unless delegated to another employee or officer. Section 4. At -Will: All positions outside of the competitive service. Employees in at -will positions may be terminated at any time at the will of the City or the employee, without cause, and without the right of appeal. At -will positions are set forth in Ordinance 03 (2005) and include: City Manager, Assistant City Manager, Development Services Director, Community Services Director, City Engineer/Public Works Director, Finance Director, Information Systems Director, department heads, Council appointed officers, seasonal part time employees, intermittent part time employees, part time employees hired after October 18, 2005, emergency employees and any employee scheduled to work less than 1,040 hours per year. Section 5. Bilingual Premium Pav Differential: A percentage of pay which will compensate the qualified employee for providing non-English language services as an essential part of his or her job. Section 6. City Manager's Designee: The person assigned to the Human Resources function (Human Resources Manager or Assistant City Manager). Section 7. Class: All positions sufficiently similar in duties, authority, responsibility, and working conditions to permit grouping under a common title and the application with equity of common standards of selection, transfer, promotion, and salary. Section 8. Competitive Service: All positions of employment in the service of the City except those excluded by Personnel Ordinance 03 (2005): City Manager, Assistant City Manager, Development Services Director, Community Services Director, City Engineer/ Public Works Director, Finance Director, Information Systems Director, department heads, Council appointed officers, seasonal part time employees, intermittent part time employees, part time -2- employees, emergency employees and any employee scheduled to work less than 1,040 hours per year. Section 9. Demotion: The movement of an employee from one class to another class having a lower maximum rate of pay. A demotion may be voluntary or involuntary. Section 10. Domestic Partner: A domestic partnership is legally established in California when all of the following requirements are met: both persons file a Declaration of Domestic Partnership with the Secretary of State; both persons have a common residence; neither person is married to someone else or is a member of another domestic partnership with someone else that has not been terminated, dissolved, or adjudged a nullity; two persons are not related by blood in a way that would prevent them from being married to each other in another state; both persons are at least 18 years of age; either of the following: (a) both persons are members of the same sex; or (b) one or both of the persons are over the age of 62, and meet certain eligibility criteria pursuant to the Social Security Act; and both persons are capable of consenting to the domestic partnership. Section 11. Eligible: When used as a noun, means a person whose name is on an employment list. Section 12. Employment Eligibility List: A list of names of persons who have taken an open -competitive examination for a class in the competitive service and have qualified. Section 13. Examinations: (a) Open -competitive examination: An examination for a particular class which is open to all persons meeting the qualifications for the class. (b) Promotional examination: An examination for a particular class, admission to the examination being limited to employees identified by the appointing authority. (c) Continuous examination: An open competitive examination which is administered periodically and as a result of which names are placed on an employment list, in order of final scores, for a period of not more than one (1) year. Section 14. Exempt: An employee not entitled to overtime compensation under the Fair Labor Standards Act. -3- Section 15. Job Classifications: For the purposes of the City's Personnel System, each position title shall correspond in the' City's Classification Plan to a }eb number as reflected in the salary resolution. (a) Executive Management: Executive Management positions are classified as exempt and at -will. i=yip^ i}g� "^ n"^pmonf' nnc+ifinne nrn (b) Full-time Exempt: Various executive, administrative, and professional positions exempt from overtime requirements. Full time exemp (c) Full-time Non -Exempt: Positions 4496'G164ifiGatien Range logo 44SS subject to overtime requirements and working 40 hours per week. (d) Hourly Benefited: Positions al s known as regular part-time or part time working twelve (12) months per year and an average of twenty (20) or more hours per week on a year-round basis. Benefits are provided to regular part time employees on a pro -rated basis. (e) Hourly Non -benefited: At -will positions in 899 also known as either seasonal or intermittent part-time. These employees are sometimes referred to as "Temporary". a. Seasonal Part-time: A position utilized up to 40 hours per week on a seasonal or partial year basis, but not more that 1000 hours per fiscal year. If an employee identified as seasonal part time works more than 1,000 hours in a fiscal year he or she does not acquire regular employee status. b. Intermittent Part-time: An intermittent position is utilized an average of 19.5 hours or less per week and no more than 1000 hours per fiscal year. If an employee identified as intermittent part- time works more than 1,000 hours in a fiscal year he or she does not acquire regular employee status. Section 16. Layoff: The involuntary separation of a regular status employee or reduction to a position in a lower classification because the position is no longer needed. Section 17. Personnel Ordinance: Ordinance Number 03 (2005) of the City of Diamond Bar, or as amended from time to time thereafter. Section 18. Probationary Period: A working test period during which an employee is required to demonstrate his or her fitness for the duties to which he or she is M appointed by actual performance of the duties of the position. The probationary period or initial period of employment is considered a part of the examination process and shall be utilized for closely observing the employee's work to determine the employee's fitness for the position. Section 19. Promotion: The movement of an employee from one class to another class having a higher maximum rate of pay and different job duties from the previous class. Section 20. Provisional Appointment: A temporary appointment of a person who possesses the minimum qualifications established for a particular class, and who has been appointed to a position in that class in the absence of available eligibles. This is sometimes referred to as an "Interim Appointment". Section 21. Reclassification: The change of a position from one class to another as a result of the gradual accretion or reduction of duties and/or responsibilities over time. Section 22. Regular Employee: An employee in the competitive service who has successfully completed his or her probationary period and has been retained as an employee. Section 23. Regular Part -Time Employee: An employee in the competitive service who has successfully completed his or her probationary period and is eligible for pro -rated benefits. Sometimes referred to as "Hourly Benefited". Section 24. Resection: The separation of an employee from employment during the probationary period or examination process. Section 25. Reinstatement: The re-employment, without examination, of a former regular employee. Section 26. Temporary Employee: An at -will employee who has been appointed to a full time or part time position of limited duration. Section 27. Transfer: A change of an employee from one position to another position in the same class or another class having the same maximum salary limits, involving the performance of similar duties and responsibilities and requiring the same qualifications. Section 28. Y Rate: When an employee is moved to a different class with a lower salary range, the employee will retain his/her current salary until the salary of the new class has a maximum salary rate which is equal to or higher than the current salary. -5- ............................. RULE lY GLASS10ICATION Section 1. Classification Plan: The City of Diamond Bar has established a classification plan. The plan consists of classes of positions in the City service defined by class specifications, including title, definition of the position, supervision received and exercised, a description of the duties and responsibilities of positions in each class, and the training, experience, and other qualifications to be required of applicants for positions in each class. The classification plan is maintained so that all positions substantially similar with respect to duties, responsibilities, authority, and character of work are included within the same class and allocated to the same schedules of compensation. Section 2. Adoption Amendment and Revision of Plan: The classification plan may be amended from time to time by resolution of the City Council. Amendments and revisions of the plan shall be approved by the City Council. Section 3. New Positions: When a new position is created and the position is filled the classification plan must be amended and an employment eligibility list established, before an appointment is made, unless the position is filled by a promotional appointment. Section 4. Classification Studies: Classification study: requests dies shall be , Gnd-,',,:+e�.. ra re��mmen�e submitted by the Department Director, l to , _., _ the Human Resources for review in order to determine if the duties and responsibilities of the position have substantivety changed -ahe, have become inequitably aligned in relation to other classification`s000itiaos within the City service, and/or are otherwise incorrectly designated. Upon receiving approval from the City Manager, a classification study shall be conducted and the position may be reclassified to a more appropriate class, whether new or already created, at a higher or lower maximum salary level. After conducting a classification analysis of the position(s) authorized for study, the City Manager will recommend classification changes, if any, to the City Council for approval. Section 5. Qualifying Examination: A reclassification with a title change that results in a salary increase above the old classification may require of the incumbent a qualifying examination to determine whether or not the incumbent possesses the minimum qualifications for the new class. The method for the qualifying examination shall be determined by the appointing authority. An incumbent proposed for a reclassification who does not pass the qualifying examination shall retain his or her original title and class until such time as he or she does pass the qualifying examination. An employee whose position is being reclassified upward and who has previously passed the examination for the position within the last two years, and whose name appears on an employment eligibility list for such a position, need not take a qualifying examination. Section 6. Y -Rate: When a reclassification results the incumbent, the incumbent shall be has earned up to that time. M in a lower maximum rate of pay for "Y -Rated" at the salary level he/she ........ _.... _._.................... RULE u COMPENSATION Section 1. Compensation Plan: The City has established a pay plan covering all classes of positions in the City service, showing the minimum and maximum rates of pay. Section 2 Section2a Amendment of Plan: The compensation plan may be amended from time to time by action of the City Council. Section 3. Salary upon Initial Hire: Department Heads shall have the discretion to place the employee at the A, B, or C step of the salary range of the classification into which the employee is hired. All employees placed at any step beyond the C step of the salary range of the classification into which the employee is hired will be at the discretion of the City Manager. Section 4. Merit Step Advancement: After six (6) months employment as a probationer *h f*er an employee is eligible to advance to the next salary step if their performance evaluation shows performance of satisfactory or above and advancement is approved by the Department Head. Upon Section 5. Merit Step Advancement for Intermittent and Seasonal Part-time Ems: After one year of employment consisting of a minimum of five hundred (500) hours an employee is eligible to advance to the next step if his or her performance evaluation shows performance of satisfactory or above and advancement is approved by the Department Head or Division Manager. An employee is eligible for a step increase on his or her second anniversary of his or her hire date or last step increase if he or she has not worked 500 hours since his or her hire date or the date of his or her last step increase. Section 6. Merit Step Increase if Evaluation is Untimely: If the employee is eligible for a step increase and an evaluation has not been completed, when the evaluation is completed, if it is satisfactory or above, the employee will receive the annual increase retroactively. Performance evaluations and Annual Work Plans will be tracked by the Human Resources Division. A step increase pending a performance evaluation may be given at the discretion of the City Manager. -10- Section 7. Amount of Merit Step Adjustments: Merit step adjustments are in approximately five percent (5%) increments to the maximum of the salary range. An employee may be given multiple step increases, not to exceed two (2) at any one time, at the recommendation of the Department Director of Division Manager and at the discretion of the City Manager. Section 8. Merit Step for Employees on Leave: Eligibility for the merit step advancement may be extended for an employee on an approved leave of absence until the employee has completed the appropriate length of service. Section 9. Effective Date of Increase: Merit increases shall be effective the first day of the pay period following the approved effective date. Section 10. Salary on Promotion: An employee promoted to a classification having a greater maximum salary will be placed on the lowest step of the new range that results in not less than a five percent (5%) increase above the employee's current regular salary. Upon recommendation of the Department Director and approval of the City Manager, the employee may be placed at a higher step. Section 11. Salary on Demotion: An employee who is demoted will be placed within the salary range for the class into which demoted. The salary will be set at the step which is lower and closest to the salary the employee was receiving before the demotion. Section 12. Salary on Reclassification: An employee who is reclassified will receive the salary set forth below. (a) If reclassified to a classification with the same salary range, the salary will not change. (b) If reclassified to a classification with a higher salary range, the salary will be determined in the same manner as a promotion. (c) If reclassified to a classification with a lower salary range, the employee will be Y -rated. Section 13. Pay Periods: The compensation to all officers and employees of the City shall be paid biweekly. Checks or electronic transfers in payment for compensation will be made available by the City to employees and officers of the City on the Friday succeeding the close of the pay period. In the event that pay day falls on a holiday payment will be made on the last work day preceding the holiday. Section 14. Bilingual Pay: Employees who are requested by the City to use bilingual skills during their scheduled work hours on a recurring basis to further the business interests of the City shall receive a bilingual premium pay differential in addition to their regular pay. (Reference: Administrative Policy P-7; Bilingual Pay Policy.) - 11 - Section 15. Overtime: (a) As a matter of general policy, the City does not permit employees to work overtime and will provide adequate staff to handle normal operations. However, non-exempt employees may be required to work overtime at the discretion of the Department Director or Division Manager. (b) Overtime for non-exempt employees is defined as hours assigned to be worked and actually worked in excess of forty (40) hours actually worked in the designated work week. (c) Non-exempt employees working overtime when not expressly authorized to do so, shall, to the extent authorized by law, not be compensated therefore and shall be subject to discipline. (d) Overtime assigned and worked by non-exempt employees shall be compensated at time and one half their regular rate of pay. The employee may request, and the Department Director or Division Manager shall have the unrestricted discretion to approve or not approve compensation in the form of accrued compensatory time at time and one-half pay, except an employee may not accrue more than forty (40) hours compensatory time at any time. (e) If a non-exempt employee is required to work on an observed holiday beyond the regular forty (40) hour work week, he or she shall be entitled to pay at the rate of two (2) times the regular rate of pay. (f) Employees who are exempt from the Fair Labor Standards Act (FLSA) are compensated on a salary basis and are not eligible for overtime. (Reference: Administrative policy P-2; Overtime Policies and Procedures) Section 16. Call -Out Pay: Non-exempt full time and part time employees will be paid a minimum of two (2) hours pay if called out to respond to a City emergency. Call out occurs when an employee is ordered to return to duty on a non - regularly scheduled work shift. Call out does not occur when an employee is held over from his or her prior shift or is working prior to his/her regularly scheduled shift. Section 17. Acting Pay: An employee who is provisionally appointed to an acting or interim position that is in a higher salary range than that of the class in which the employee is normally assigned shall receive acting compensation. (a) Acting pay shall be provided only for appointments with duration greater than twenty-one (21) consecutive calendar days and shall be retroactive to the effective date of the acting appointment and continue until completion of appointment. -12- (b) Such acting appointments shall be made in writing by the City Manager with a copy to the Human Resources Division. (c) Compensation shall be at the entrance salary step of the higher range or the step within the higher salary range, which would provide a minimum of five percent (5%) higher than the employee receives, whichever is greater. Section 18. Cost of Living Adjustment (COLA): At the adoption of the City's annual budget, a request by the City Manager may be made to the City Manager may be made to the City Council to provide a cost of living adjustment to the City's employees' compensation. The COLA is the annual Consumer Price Index (CPI) percentage as issued by the Department of Labor, Bureau of Labor Consumer Price Index for Urban Wage Earners and Clerical Workers Los Angeles -Riverside -Orange Counties, California for year ending March of the current year. The City Council has the sole discretion to adopt or modify the request at any time. -13- EXAMINATIONS Section 1. Types of Examinations: The selection techniques used in the examination process shall measure the knowledge and abilities of the applicants to execute the duties and responsibilities of the class to which they seek to be appointed. Examinations shall consist of selection techniques which will test fairly the qualifications of candidates. The City Manager or designee may select the appropriate examination(s) to be utilized in the selection process. Section 2. Promotional Examinations: All candidates for promotion must meet the minimum qualifications identified by the appointing authority. The appointing authority will determine whether the examination is open competitive or a promotional appointment. Section 3. Continuous Examinations: Open -competitive examinations may be administered periodically for a single class as the needs of the service require. Names shall be placed on employment lists, in order of final scores, for a period of not more than one (1) year, unless extended by the City Manager's designee. Section 4. Conduct of Examinations: The City Manager's designee will determine the manner and methods and by whom examinations shall be prepared and administered. Section 5. Reasonable Accommodation in Testing: Should an otherwise qualified applicant who is disabled request a reasonable accommodation for any part of the testing process the City may modify the process to reduce or eliminate the testing barrier. Section 6. Post Offer Physical Examinations and Background Investigations: As a condition of an offer of City employment all candidates must successfully pass a post -offer physical which ud may incle a a substance abuse examination and are subject to fingerprinting and a background investigation. Candidates being considered for employment will be sent to a City authorized physician at the City's expense. Section 7. Immigration Reform and Control Act of 1986: In compliance with the Immigration Reform and Control Act f 1986, all new employees must very identity and entitlement to work in the United States by providing required documentation. Section 8. Notification of Selection Process Results: Each person competing in an employment selection process shall be given notice of placement or non - placement on the employment eligibility list. -16- RULE XII' ATTEN©ANC AND LEAVES Section 1. Attendance: Full time employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays, and leave. Absence of any employee without leave may result in disciplinary action, including discharge. Section 2. Vacation Leave: Vacation is a right, earned as a condition of employment, to a leave of absence with pay for the recreation and well being of the employee. If an employee has exhausted sick leave, vacation may be used for sick leave upon request of the employee and with approval of the Department Director or Division Manager. (a) Employees shall accrue, on a pro -rata basis, vacation leave for completed pay periods. Such vacation allowance shall be available for use on the first day following the pay period in which it is earned; however, vacation allowance shall be available for use after the completion of six (6) months by a probationary employee. (b) Maximum Accrual: Vacation leave may be accrued to a maximum of 360 38 hours. Once the 360 308 hour maximum accumulation is reached, no further vacation leave shall accrue until the employee reduces the accumulation below the maximum. (c) Waiver of Maximum Accrual: A waiver must be requested by the Department Director or Division Manager and approved by the City Manager, for a period not to exceed thirteen (13) pay periods per fiscal year. If at the end of the waiver period the maximum accrual amount is exceeded, vacation accrual for the affected employee will stop. No further vacation time will be accrued until the employee's vacation leave balance is below the maximum accrual amount. In the event that the failure to utilize vacation past the thirteen pay period waiver is due to the City's inability to allow an employee to take vacation (as opposed to an 11111011111 Annual Length of Service from Vacation Accrual Benefit Date Allowance Rate On employment through 3.08 hours 59 months 80 hours per pay period 60 months through 4.62 hours 119 months 120 hours per pay period 6.15 hours 120 months and up 160 hours per pay period (b) Maximum Accrual: Vacation leave may be accrued to a maximum of 360 38 hours. Once the 360 308 hour maximum accumulation is reached, no further vacation leave shall accrue until the employee reduces the accumulation below the maximum. (c) Waiver of Maximum Accrual: A waiver must be requested by the Department Director or Division Manager and approved by the City Manager, for a period not to exceed thirteen (13) pay periods per fiscal year. If at the end of the waiver period the maximum accrual amount is exceeded, vacation accrual for the affected employee will stop. No further vacation time will be accrued until the employee's vacation leave balance is below the maximum accrual amount. In the event that the failure to utilize vacation past the thirteen pay period waiver is due to the City's inability to allow an employee to take vacation (as opposed to an 11111011111 employee's delay and/or failure to request vacation time off), the employee may, with City Manager authorization, continue to accrue vacation. (d) Vacation Leaue Cat Out Option: Once 240 hours of vacation leave accumulation is reached, the employee is eligible to receive at their request, a one time per year "cash out" payment for up to 80 40 hours of the accrued vacation leave provided he or she has used 80 hours of his or her accrued vacation leave during the previous twelve months. The "cash out" value is at the employee's current rate of pay regardless of the rate at which the vacation leave hours were earned. (e) The minimum charge against accumulated vacation leave shall be fifteen (15) minutes or multiples thereof. Vacation leave shall be compensated at the employee's base rate of pay. (f) The time during a calendar year at which an employee may take his or her vacation shall be determined by the Department Director of Division Manager with due regard for the wishes of the employee and particular regard for the needs of the City. (g) All vacation leave requests shall be made with as much advance notice as possible, and prior approval must be given by the employee's supervisor and Department Director or Division Manager. When circumstances warrant and advance notice is impractical, Department Directors or Division Managers may approve the use of vacation leave for emergency absences. If an employee does not request time off in advance and simply does not show up for work, the Department Director or Division Manager may deny the use of vacation time or any leave accruals, and said employee may be subject to disciplinary action. (h) When a fixed holiday falls within a vacation period, the holiday time shall not be charged against an employee's earned vacation benefits. (i) Employees who terminate or retire shall be paid for all accrued vacation leave earned at their base rate of pay at the time of their separation of employment. (j) Exempt employees, for the purpose of accrual, shall be credited with previous municipal experience, up to five (5) years of full-time service. (k) Employees on Unpaid Leave: Employees on Unpaid Leave do not accrue Vacation Leave. (1) Employees not Eligible for Vacation: Temporary (working less than 1,040 hours), emergency, seasonal part time, and intermittent part time do not accrue Vacation Leave. -21- (m) Prorated Benefits: Regular part time employees receive prorated Vacation Leave. Section 3. Sick Leave: Sick Leave is defined as the authorized absence from duty of an employee because of physical or mental illness, injury, pregnancy, confirmed exposure to a serious contagious disease, or for a medical, optical, or dental appointment. Sick leave may also be taken to care for a member of the immediate family who requires the attention of the employee, for a maximum of forty-eight (48) hours per calendar year. Sick leave shall not be considered as a privilege which an employee may use at his/her discretion, but shall be allowed only in case of necessity and actual sickness or disability. (a) Accrual: Employees shall accrue sick leave for each payroll period completed, prorated on the basis of eighty (80) hours per year, or 3.08 hours per pay period. Sick leave shall be available for use the first day following the payroll period in which it is earned. (b) Minimum Use: The minimum charge against accumulated sick leave shall be fifteen (15) minutes or multiples thereof. Approved sick leave with pay shall -be compensated at the employee's base rate of pay. (c) Proof of Illness: The Department Directors or Division Manager may require a physician's certificate. (d) Notification: In order to receive compensation while absent from duty on sick leave, the employee must notify his/her immediate supervisor or Department Director or Division Manager prior to, or within two (2) hours after the time set for the beginning of his/her regular duties. The Department Director or Division Manager may request a certificate issued by a licensed physician or other satisfactory proof of illness before sick leave is granted. (e) Violations: Violation of sick leave privileges may result in disciplinary action when in the opinion of the Department Director or Division Manager, the employee has been excessively absent or has abused such privileges. Employees who do not call in within two (2) hours of the start of their assignment may be denied use of sick leave. (g) Sick Leave Payout: Each full time employee shall be paid annually for all accrued sick leave in excess of the maximum allowable accumulation of two hundred (200) hours at a rate of one-half (1/2) the employee's current wage at the time of payment. Said payment is to be made during the month of December, or at such other time as the City Manager may determine, at his/her absolute discretion, as appropriate. After five (5) years of service, when an employee retires, resigns or terminates in good standing, that employee will be paid all accumulated Sick Leave at a rate of one-half (1/2) of the employee's current rate of pay at his or her date of separation. -22- (h) Use of Family Sick Leave: Use of family sick leave shall be limited to half the yearly sick leave entitlement in any one (1) year period. The amount of sick leave available is limited to what the employee accrued prior to utilizing sick leave for this purpose. Sick leave taken for this purpose shall be allowed only in the case of necessity of and actual illness of an employee's child, parent, or spouse or domestic partner as determined by the City Manager. In order to receive sick leave with pay for this purpose, the employee shall notify the Department Head prior to or within two (2) hours after the start of the employee's scheduled work shift. The City Manager may, if he/she deems necessary, require the employee to file a Physician's Certificate (regarding the illness of the employee's child, parent, spouse, or domestic partner) or an Affidavit stating the cause of absence. Use of sick leave under this section shall not extend the maximum period of leave to which an employee is entitled under Family and Medical Leave. (i) Employees on Unpaid Leave: Employees on unpaid leave do not accrue Sick Leave. Q) Seasonal and Intermittent Part Time Employees: Seasonal and intermittent part time employees do not accrue Sick Leave. (k) Part-time regular employees: Part time regular employees accrue prorated sick leave. Section 4. Occupational Injury or Illness Leave: Whenever a person is compelled to be absent from employment with the City on account of injury or illness arising out of or in the course of that employee's employment as determined by the Workers' Compensation Act, the employee may elect to apply pro -rated accrued sick leave, if any, to such absence to receive compensation of an amount of the difference between the compensation received under the Workers' Compensation Act and that of the employee's regular pay, not to exceed the amount of the employee's earned sick leave. An employee, in such instance, may also elect to use any earned vacation time in like manner after sick leave is exhausted. An employee, in such instance, may also elect to use any earned Administrative Leave and Floating Holiday hours in like manner after sick leave and earned vacation time is exhausted. Employees shall receive full salary in lieu of Workers' Compensation benefits and paid sick leave for the first twenty- four (24) hours following an occupational injury or illness, if authorized absence is by order of an accepted physician under the Workers' Compensation sections of the California Labor Code. Section 5. Bereavement Leave: When circumstances are such and the City Manager determines that conditions warrant, twenty-four (24) hours of paid bereavement leave may be used per occurrence in the event of death of a spouse, domestic partner, child, brother, sister, parent, parents -in-laws, or grandparent of a full time employee. With City Manager approval, up to an additional sixteen (16) hours of sick leave may be used to supplement bereavement leave. -23 - In the event of the death of other relatives and with City Manager approval, twenty-four (24) hours of Sick Leave may be used per occurrence for the death of aunts, uncles, or other individuals related by blood or marriage. Section 6. Jury Duty and Witness Leave: If a regular full time employee is required to serve as a juror, such employee shall receive regular pay while actually performing jury service. Amounts received by such employee as payment for service as a juror except mileage paid to the employee need to be reimbursed to the City. Part time regular employees shall receive prorated pay based on the hours they were scheduled to work. Employees will be required to provide a Jury Duty Certification form to their supervisor, to be attached to their time sheet for that time period. Employees shall be granted leave with pay when subpoenaed to testify as a witness other than as a party or an expert. Employees absent from work due to jury duty or witness leave must daily notify their immediate supervisor or department head of the status of their leave. Section 7. Administrative Leave: FLSA exempt employees are allowed eighteen (18) Administrative Leave may be accumulated and carried over to the following year for a maximum of two (2) years. Administrative leave must be used by June 30 of the second fiscal year. If not used, the exempt employee will cease accruing Administrative Leave for the following year. Requests must be approved by the immediate supervisor and the City Manager. Use of Administrative Leave will be authorized at the convenience of the City and the work schedule. Section 8. Family and Medical Leave: (a) Statement of Policy: To the extent not already provided for under current leave policies and provisions, the City will provide family and medical care leave for eligible employees as required by state and federal law. (b) Definitions: (1) 12 -Month Period means a rolling 12 -month period measured backward from the date leave is taken and continuous with each additional leave day taken. -24- (2) Child means a child under the age of 18 years of age, or 18 years of age or older who is incapable of self-care because of a mental or physical disability. An employee's child is one for whom the employee has actual day-to-day responsibility for care and includes, a biological, adopted, foster or step- child, legal ward, or a child of a person standing in loco parentis. (3) Parent means the biological parent of an employee or an individual who stands or stood in loco parentis (in place of a parent) to an employee when the employee was a child. This term does not include parents-in-law. (4) Domestic Partner means a person as defined in the Family Code. (c) Reasons For Leave: Leave is only permitted for the following reasons: (1) The birth of a child or to care for a newborn of an employee; (2) The placement of a child with an employee in connection with the adoption or foster care of a child; (3) Leave to care for a child, parent, or spouse who has a serious health condition; or (4) Leave because of a serious health condition that makes the employee unable to perform the functions of his/her position. (d) Employees Eligible For Leave An employee is eligible for leave if the employee: (1) Has been employed for at least 12 months; and (2) Has been employed for at least 1,250 hours during the 12 - month period immediately preceding the commencement of the leave. (e) Amount of Leave: Eligible employees are entitled to a total of 12 workweeks of leave during any 12 -month period. (1) Minimum Duration of Leave: If leave is requested for the birth, adoption or foster care placement of a child of the employee, leave must be concluded within one year of the birth or placement of the child. In addition, the basic -25- minimum duration of such leave is two weeks. However, an employee is entitled to leave for one of these purposes (e.g., bonding with a newborn) for at least one day, but less than two weeks duration on any two occasions. If leave is requested to care for a child, parent, spouse, or the employee him/herself with a serious health condition, there is no minimum amount of leave that must be taken. However, the notice and medical certification provisions of this policy must be complied with. (2) Spouses Both Employed by the City: In any case in which a husband and wife both employed by the City are entitled to leave, the aggregate number of workweeks of leave to which both may be entitled may be limited to 12 workweeks during any 12 -month period if leave is taken for the birth or placement for adoption or foster care of the employees' child (i.e., bonding leave). This limitation does not apply to any other type of leave under this policy. (f) Employee Benefits While On Leave: Leave under this policy is unpaid. While on leave, employees will continue to be covered by the group health insurance to the same extent that coverage is provided while the employee is on the job. If an employee fails to return to work after his/her leave entitlement has been exhausted or expires, the City shall have the right to recover its share of health plan premiums for the entire leave period, unless the employee does not return because of the continuation, recurrence, or onset of a serious health condition of the employee or his/her family member which would entitle the employee to leave, or because of circumstances beyond the employee's control. The City shall have the right to recover premiums through deduction from any sums due the City. (g) Substitution of Paid Accrued Leaves: While on leave under this policy, as set forth herein, an employee may elect to concurrently use paid accrued leaves. Similarly, the City may require an employee to concurrently use paid accrued leaves after requesting Family Medical Leave (FMLA) and/or California Family Rights Act (CFRA) leave, and may also require an employee to use Family and Medical Care Leave concurrently with a non-FMLA/CFRA leave which is FMLA/CFRA-qualifying. (1) Employee's Right to Use Paid Accrued Leaves Concurrently With Family Leave: Where an employee has earned or accrued paid vacation, administrative leave, or -26- compensatory time, that paid leave may be substituted for all or part of any otherwise unpaid leave under this policy. As for sick leave, an employee is entitled to use sick leave as set forth in Section 3. (h) Medical Certification: Employees who request leave for their own serious health condition or to care for a child, parent or a spouse who has a serious health condition must provide written certification from the health care provider of the individual requiring care if requested by the City. (i) Reinstatement Upon Return From Leave (1) Right to Reinstatement: Upon expiration of leave, an employee is entitled to be reinstated to the position of employment held when the leave commenced, or to an equivalent position with equivalent employment benefits, pay, and other terms and conditions of employment. (2) Employee's Obligation to Periodically Report on His/Her Condition: Employees may be required to periodically report on their status and intent to return to work. This will avoid any delays to reinstatement when the employee is ready to return. (3) Fitness for Duty Certification: As a condition of reinstatement of an employee whose leave was due to the employee's own serious health condition that made the employee unable to perform his/her job, the employee must obtain and present a fitness -for -duty certification from the health care provider that the employee is able to resume work. Failure to provide such certification will result in denial of reinstatement. Section 9. California Paid Family Leave: California Paid Family Leave is a component of State Disability Insurance (SDI). Unlike SDI, which partially covers employee wage loss due to a personal disability, injury, or pregnancy, Paid Family Leave Insurance partially covers employee wage loss for individuals who need to care for a seriously ill family member or bond with a new child. Benefits are available for a maximum of six (6) weeks in a twelve (12) month period. Paid Family Leave and SDI are both administered by the Employment Development Division (EDD) and funded entirely by mandatory payroll deductions. Section 10. Pregnancy Disability Leave: An employee is eligible for six (6) weeks of unpaid leave for a normal pregnancy, childbirth or related medical condition and up to four (4) months when there is certification by a physician that there is a disability due to the pregnancy, childbirth, or related medical condition. SOME (a) During the pregnancy disability leave time, paid leave may be charged to accrued benefit time such as vacation, administrative leave and floating holidays, at the employee's request. In addition, accrued sick leave may be used at the employee's request, in accordance with Section 3. (b) Health insurance benefits shall continue for the duration of the pregnancy disability leave under the same conditions as if the employee had continued employment. If the employee fails to return to work after the period of leave to which the employee is entitled has expired, the City is entitled to recover the premiums paid on behalf of the employee for maintaining coverage. (c) The City Manager may require the employee to file a physician's certificate or personal affidavit and to provide reasonable notice of the date the leave will begin and the estimated duration of the leave. Section 11. Election Leave: If a full time employee does not have sufficient time outside of working hours to vote at a statewide election, the voter may, without loss of pay, take off enough working time, which when added to the voting time available outside of working hours will enable the voter to vote. Regular part time employees are eligible for election leave based upon hours scheduled to work. No more than two (2) hours of the time taken off for voting shall be without loss of pay. The time off for voting shall be only at the beginning or end of the regular work shift, whichever allows for the greatest free time for voting and the least time off from the regular working shift, unless otherwise mutually agreed upon. The employee shall give the supervisor at least two working days' notice that time off for voting is desired. Section 12. School Visit Leave: Full time and regular part time employees are permitted to use up to forty (40) hours of leave for the purpose of participating in their children's school activities. Vacation or Floating Holiday Leave must be used for this purpose, and the request for time off cannot exceed eight (8) hours in any calendar month. In the event the employee has exhausted all accrued vacation leave and floating holiday hours, leave without pay may be taken for this purpose and all hour restrictions apply. Section 13. Leave of Absence Without Pay: The City Manager may grant a regular employee a leave of absence without pay for a period not to exceed one (1) year. No such leave shall be granted except upon written request of the employee, setting forth the reason for the request. Approval will be in writing. Upon expiration of a regularly approved leave or within a reasonable period of time after notice to return to duty, the employee shall be reinstated in the classification held at the time leave was granted. Failure on the part of an employee on leave to report promptly at its expiration, or within a reasonable time after notice to return to duty shall be cause for discharge. Such leave of absence shall not be counted as a break in service for purposes of satisfying the continuous employment requirement for vacation allowance. -28- (a) Department Directors may grant an employee leave of absence without pay for a period not to exceed one (1) calendar week. Such leaves shall be reported to the City Manager. (b) An employee on leave of absence without pay does not accrue sick leave, vacation time, or receive benefits while on leave. Such employee does not lose or forfeit any sick leave or unpaid vacation time that had been accumulated prior to the time being granted. Section 14. Military Leave: Military leave shall be granted to City employees in accordance with the provisions of current federal and state law. Section 15. Political Leave: Political leave declared a candidate for public Leave of Absence Without Pay. shall be granted to any employee who is office subject to the provisions of Section 13: Personnel Rules and Regulations Resolution No. 2008 - As amended by City Council effective September 1, 2008 CITY OF DIAMOND BAR PERSONNEL RULES AND REGULATIONS Effective September 1, 2008 Table of Contents Rule I Purpose and Application Page Purpose...............................................................................................1 Application..........................................................................................1 NoContract Created...........................................................................1 Rule II Definition of Terms Definitionsof Terms............................................................................2 Rule III General Provisions Discrimination Prohibited....................................................................6 NepotismProhibited............................................................................6 Political Activity Prohibited..................................................................7 Outside Employment ................. Violationof Rules................................................................................7 Amendment and Revision of Rules.....................................................7 Rule IV Classification Classification Plan...............................................................................8 Adoption, Amendment, and Revision of Plan......................................8 NewPositions.....................................................................................8 Classification Studies..........................................................................8 QualifyingExamination.......................................................................8 Y-Rate................................................................................................. 9 Rule V Compensation CompensationPlan.............................................................................10 Amendment of Plan.............................................................................10 Salary Upon Initial Hire.......................................................................10 Merit Step Advancement.....................................................................10 Merit Step Advancement for Part Time Employees .............................10 Merit Step Increase if Evaluation is Untimely......................................10 Amount of Merit Step Adjustments......................................................11 Merit Step for Employees on Leave....................................................11 Effective Date of Increase...................................................................11 Salaryon Promotion............................................................................11 Salaryon Demotion.............................................................................11 Salary on Reclassification...................................................................11 PayPeriods.........................................................................................11 BilingualPay.......................................................................................11 Overtime.............................................................................................12 CallOut Pay........................................................................................12 ActingPay...........................................................................................12 Cost of Living Adjustment (COLA)..............................................13 Rule VI Hours of Work The9/80 Plan......................................................................................14 FiveDay Work Week..........................................................................14 Alternate Work Schedule....................................................................14 WorkWeek Defined............................................................................14 The City May Change the Work Week................................................14 Request to Change Schedule.............................................................14 MealPeriod.........................................................................................14 Rule VII Applications and Applicants Announcement....................................................................................15 Application..........................................................................................15 Disqualification....................................................................................15 Rule VIII Examinations Types of Examinations........................................................................16 Promotional Examinations..................................................................16 Continuous Examinations...................................................................16 Conduct of Examinations....................................................................16 Reasonable Accommodation in Testing..............................................16 Post Offer Physical Examinations and Background Investigations .....16 Immigration Reform and Control Act...................................................16 Notification of Selection Process Results............................................16 Rule IX Employment Eligibility Lists Employment Eligibility Lists.................................................................17 Durationof Lists..................................................................................17 Removal of Applicants from Lists........................................................17 Rule X Method of Filling Vacancies Types of Appointment.........................................................................18 Notice to Human Resources...............................................................18 Appointment........................................................................................18 Veterans Preference...........................................................................18 Temporary Assignments.....................................................................18 Extended Assignment to Vacant Higher Position................................18 Vacancies Outside the Competitive Service.......................................18 Rule XI Probationary Period Probationary Period............................................................................19 Purpose of Probationary Period..........................................................19 Extension of Probationary Period........................................................19 Rejection During Probation.................................................................19 Rejection During Probation From a Promotional Position ...................19 Use of Leave During Probation...........................................................19 Rule XII Attendance and Leaves Attendance..........................................................................................20 VacationLeave...................................................................................20 SickLeave..........................................................................................22 Occupational Injury or Illness Leave...................................................23 BereavementLeave............................................................................23 Jury Duty and Witness Leave..............................................................24 Administrative Leave...........................................................................24 Family and Medical Leave..................................................................24 California Paid Family Leave...............................................................27 PregnancyDisability Leave.................................................................28 ElectionLeave.....................................................................................28 School Visit Leave...............................................................................28 Leave of Absence without Pay............................................................28 MilitaryLeave......................................................................................29 PoliticalLeave.....................................................................................29 Rule XIII Holidays HolidaysObserved..............................................................................30 FloatingHolidays.................................................................................30 Eligibility for Holidays..........................................................................31 ProratedHoliday Pay..........................................................................31 Rule XIV Changes in Employment Status Transfer............................................................................................... 32 Promotion............................................................................................ 32 Demotion............................................................................................. 32 Suspension.........................................................................................32 Reclassification...................................................................................32 Rule XV Separation from Employment JobAbandonment...............................................................................33 Discharge............................................................................................ 33 Layoff..................................................................................................32 Resignation.........................................................................................34 Reinstatement.....................................................................................34 Rule XVI Reports and Records General............................................................................................... 35 Notifying City of Changes in Personal Information..............................35 Location of Personnel Files.................................................................35 Medical Information.............................................................................35 References and Release of Information in Personnel Files ................35 Employee Access to Personnel File....................................................36 Destruction of Records........................................................................36 Rule XVII Grievance Procedure Definition.............................................................................................37 Procedure...........................................................................................37 Right of Grievant to Representation....................................................38 Reprisals.............................................................................................38 Rule XVIII Discipline Types of Disciplinary Action................................................................39 Grounds for Disciplinary Action Involving Regular Employees ............ 39 Procedures for Taking Disciplinary Action...........................................41 AppealRights......................................................................................43 Methodof Appeal................................................................................43 Notice..................................................................................................43 Subpoenas..........................................................................................43 Hearings..............................................................................................43 Findings and Recommendations.........................................................44 RULE XIX Performance Evaluations and Annual Work Plans General...............................................................................................45 Responsibility for Evaluation...............................................................45 Discussion with Employee..................................................................45 Schedule.............................................................................................45 AppealProcedure...............................................................................46 RULE XX Vehicle Use Useof Private Vehicles.......................................................................47 AutoAllowance...................................................................................47 RULE XXI Professional Development TrainingPlan.......................................................................................48 Tuition Reimbursement.......................................................................48 RULE XXII Employee Standards of Conduct Codeof Ethics.....................................................................................49 HarassmentPolicy..............................................................................50 Harassment Complaint Form..............................................................56 Information Systems Usage Policy......................................................58 Workplace Substance Abuse Prevention Policy.................................65 Policy against Retaliation....................................................................69 RULE PURPOSE AND APPLICATION Section 1. Purpose: The purpose of these rules is to facilitate efficient and economical services to the public and to establish lawful procedures for dealing with personnel matters. Unless amended by a subsequent Resolution of the City Council the Rules and Regulations set forth herein and the Personnel Ordinance shall govern the Personnel System for the City of Diamond Bar. Section 2. Application: These rules apply to all employees of the City of Diamond Bar unless a specific rule or procedure indicates otherwise. Section 3. No Contract Created: These rules do not create any contract of employment, express or implied, or any right in the nature for a contract. RULE It DEFINITION OF TERMS DEFINITION OF TERMS Unless the context indicates otherwise the following terms, whenever used in these rules, shall be defined as follows: Section 1. Advancement: A salary increase within the limits of the pay range established for the class. Section 2. Allocation: The assignment of a single position to its proper class in accordance with the duties performed, and the authority and responsibilities exercised. Section 3. Appointing Authority: The person having the authority to appoint or remove a person from City employment. This is the City Manager unless delegated to another employee or officer. Section 4. At -Will: All positions outside of the competitive service. Employees in at -will positions may be terminated at any time at the will of the City or the employee, without cause, and without the right of appeal. At -will positions are set forth in Ordinance 03 (2005) and include: City Manager, Assistant City Manager, Development Services Director, Community Services Director, City Engineer/Public Works Director, Finance Director, Information Systems Director, department heads, Council appointed officers, seasonal part time employees, intermittent part time employees, part time employees hired after October 18, 2005, emergency employees and any employee scheduled to work less than 1,040 hours per year. Section 5. Bilingual Premium Pay Differential: A percentage of pay which will compensate the qualified employee for providing non-English language services as an essential part of his or her job. Section 6. City Manager's Designee: The person assigned to the Human Resources function (Human Resources Manager or Assistant City Manager). Section 7. Class: All positions sufficiently similar in duties, authority, responsibility, and working conditions to permit grouping under a common title and the application with equity of common standards of selection, transfer, promotion, and salary. Section 8. Competitive Service: All positions of employment in the service of the City except those excluded by Personnel Ordinance 03 (2005): City Manager, Assistant City Manager, Development Services Director, Community Services Director, City Engineer/ Public Works Director, Finance Director, Information Systems Director, department heads, Council appointed officers, seasonal part time employees, intermittent part time employees, part time -2- employees, emergency employees and any employee scheduled to work less than 1,040 hours per year. Section 9. Demotion: The movement of an employee from one class to another class having a lower maximum rate of pay. A demotion may be voluntary or involuntary. Section 10. Domestic Partner: A domestic partnership is legally established in California when all of the following requirements are met: both persons file a Declaration of Domestic Partnership with the Secretary of State; both persons have a common residence; neither person is married to someone else or is a member of another domestic partnership with someone else that has not been terminated, dissolved, or adjudged a nullity; two persons are not related by blood in a way that would prevent them from being married to each other in another state; both persons are at least 18 years of age; either of the following: (a) both persons are members of the same sex; or (b) one or both of the persons are over the age of 62, and meet certain eligibility criteria pursuant to the Social Security Act; and both persons are capable of consenting to the domestic partnership. Section 11. Eligible: When used as a noun, means a person whose name is on an employment list. Section 12. Employment Eligibility List: A list of names of persons who have taken an open -competitive examination for a class in the competitive service and have qualified. Section 13. Examinations: (a) Open -competitive examination: An examination for a particular class which is open to all persons meeting the qualifications for the class. (b) Promotional examination: An examination for a particular class, admission to the examination being limited to employees identified by the appointing authority. (c) Continuous examination: An open competitive examination which is administered periodically and as a result of which names are placed on an employment list, in order of final scores, for a period of not more than one (1) year. Section 14. Exempt: An employee not entitled to overtime compensation under the Fair Labor Standards Act. -3- Section 15. Job Classifications: For the purposes of the City's Personnel System, each position title shall correspond in the City's Classification Plan to a jeb c,lasr,AGatier number as reflected in the job GlassifiratieR and salary resolution. (a) Executive Management: Executive Management positions are classified as exempt and at -will. ExeGutive MaRagWeRt pesitieRs (b) Full-time Exempt: Various executive, administrative, and professional positions exempt from overtime requirements. Full time positions -- in 1-1, GlassifuGatiom D---- 4Q (c) Full-time Non -Exempt: Positions in ' 4499 subject to overtime requirements and working 40 hours per week. (d) Hourly Benefited: Positions alse known as regular part-time or part time working twelve (12) months per year and an average of twenty (20) or more hours per week on a year-round basis. Benefits are provided to regular part time employees on a pro -rated basis. (e) Hourly Non -benefited: At -will positions in job GlassifiGation RaRge 500 SW also known as either seasonal or intermittent part-time. These employees are sometimes referred to as "Temporary". a. Seasonal Part-time: A position utilized up to 40 hours per week on a seasonal or partial year basis, but not more that 1000 hours per fiscal year. If an employee identified as seasonal part time works more than 1,000 hours in a fiscal year he or she does not acquire regular employee status. b. Intermittent Part-time: An intermittent position is utilized an average of 19.5 hours or less per week and no more than 1000 hours per fiscal year. If an employee identified as intermittent part- time works more than 1,000 hours in a fiscal year he or she does not acquire regular employee status. Section 16. Layoff: The involuntary separation of a regular status employee or reduction to a position in a lower classification because the position is no longer needed. Section 17. Personnel Ordinance: Ordinance Number 03 (2005) of the City of Diamond Bar, or as amended from time to time thereafter. Section 18. Probationary Period: A working test period during which an employee is required to demonstrate his or her fitness for the duties to which he or she is -4- appointed by actual performance of the duties of the position. The probationary period or initial period of employment is considered a part of the examination process and shall be utilized for closely observing the employee's work to determine the employee's fitness for the position. Section 19. Promotion: The movement of an employee from one class to another class having a higher maximum rate of pay and different job duties from the previous class. Section 20. Provisional Appointment: A temporary appointment of a person who possesses the minimum qualifications established for a particular class, and who has been appointed to a position in that class in the absence of available eligibles. This is sometimes referred to as an "Interim Appointment". Section 21. Reclassification: The change of a position from one class to another as a result of the gradual accretion or reduction of duties and/or responsibilities over time. Section 22. Regular Employee: An employee in the competitive service who has successfully completed his or her probationary period and has been retained as an employee. Section 23. Regular Part -Time Employee: An employee in the competitive service who has successfully completed his or her probationary period and is eligible for pro -rated benefits. Sometimes referred to as "Hourly Benefited". Section 24. Resection: The separation of an employee from employment during the probationary period or examination process. Section 25. Reinstatement: The re-employment, without examination, of a former regular employee. Section 26. Temporary Employee: An at -will employee who has been appointed to a full time or part time position of limited duration. Section 27. Transfer: A change of an employee from one position to another position in the same class or another class having the same maximum salary limits, involving the performance of similar duties and responsibilities and requiring the same qualifications. Section 28. Y Rate: When an employee is moved to a different class with a lower salary range, the employee will retain his/her current salary until the salary of the new class has a maximum salary rate which is equal to or higher than the current salary. -5- RULE III GENERAL PROVISIONS Section 1. Discrimination Prohibited: No person employed by the City of Diamond Bar or seeking employment with the City, shall be discriminated against in recruitment, examination, appointment, training, promotion, retention, discipline, or any other aspect of personnel administration because of race, color, religion, national origin, ancestry, marital status, sex, age, physical or mental disability, sexual orientation, political or religious opinions or affiliations, taking of Family Medical Leave Act (FMLA) or pregnancy disability leave, religious creed, medical condition, or any other characteristic protected by law. Section 2. Nepotism Prohibited: (a) Relatives of those listed below may not be employed anywhere in the City organization: 1. City Council members; 2. Standing Board and Commission members; 3. Management Team Members of the City; 4. Employees of the City Manager's Department; or 5. Employees of the Human Resources Department. (b) The employment of a relative within a department is prohibited when they: 1. Perform joint duties; 2. Share responsibility or authority; 3. Function in the same chain of command; and 4. Work on the same shift at the same work site. (c) For business reasons of supervision, safety, security or morale, the City may refuse to place one spouse or domestic partner under the direct supervision of the other spouse or domestic partner. (d) For business reasons of supervision, safety, security or morale, the City may refuse to place both spouses or domestic partners in the same department, division, or facility if the work involves potential conflicts of interest or other hazards greater for married couples than other persons. (e) "Relative" means child, stepchild, parent, grandparent, grandchild, brother, sister, half-brother, half-sister, aunt, uncle, niece, nephew, parent -in-law, brother-in-law, sister-in-law, domestic partner, or other individual related by blood or marriage. (f) "Employee" means any person who receives a City paycheck for services rendered to the City. (g) For business reasons, these sections shall be enforced to address the marriage of employees in the City's employment, within six (6) months of said marriage or the establishment of the Domestic Partnership. (h) Exceptions to this section may be made by the City Manager. Any appeal of the enforcement of this section shall be to the City Manager. Section 3. Political Activity Prohibited: City employees shall not engage in political activities in violation of Government Code section 3201 et seq. No one employed by the City may engage in political activities on City premises, while engaged in official duties, using City equipment, or wearing an official City uniform. Section 4. Outside Employment: No employee may hold outside employment that is incompatible with his/her City employment. Each regular employee who holds any other position in addition to City employment shall complete a Request for Approval of Additional Employment form and return it to the department head for signature and then to the City Manager or designee for approval. Employees who hold more than one position with the City must also complete a form. The approval of outside employment must be renewed each January. Employees who accept new outside employment will be expected to submit the form at the time of employment. Section 5. Multiple Positions Held: Employees who hold more than one position with the City must complete a Request for Approval of Additional Employment Form. Section 6. Employee Duties: Employees are required to carry out the primary duties and responsibilities of their employment. Section 7. Violation of Rules: Violation of the provisions of these rules shall be grounds for disciplinary action. Section 8. Amendment and Revision of Rules: Amendments and revisions to these rules must be recommended by the City Manager and approved by the City Council. -7- RULE IV CLASSIFICATION Section 1. Classification Plan: The City of Diamond Bar has established a classification plan. The plan consists of classes of positions in the City service defined by class specifications, including title, definition of the position, supervision received and exercised, a description of the duties and responsibilities of positions in each class, and the training, experience, and other qualifications to be required of applicants for positions in each class. The classification plan is maintained so that all positions substantially similar with respect to duties, responsibilities, authority, and character of work are included within the same class and allocated to the same schedules of compensation. Section 2. Adoption, Amendment, and Revision of Plan: The classification plan may be amended from time to time by resolution of the City Council. Amendments and revisions of the plan shall be approved by the City Council. Section 3. New Positions: When a new position is created and the position is filled the classification plan must be amended and an employment eligibility list established, before an appointment is made, unless the position is filled by a promotional appointment. Section 4. Classification Studies: Classification study requests studies shall be submitted by the Department Director Head to the Human Resources for review W by the City ManageF in order to determine if the duties and responsibilities of the position have substantively changed aterta and, have become inequitably aligned in relation to other classifications positions within the City service, and/or are otherwise incorrectly designated. Upon receiving approval from the City Manager, a classification study shall be conducted and the position may be reclassified to a more appropriate class, whether new or already created, at a higher or lower maximum salary level. After conducting a classification analysis of the position(s) authorized for study, the City Manager will recommend classification changes, if any, to the City Council for approval. Section 5. Qualifying Examination: A reclassification with a title change that results in a salary increase above the old classification may require of the incumbent a qualifying examination to determine whether or not the incumbent possesses the minimum qualifications for the new class. The method for the qualifying examination shall be determined by the appointing authority. An incumbent proposed for a reclassification who does not pass the qualifying examination shall retain his or her original title and class until such time as he or she does pass the qualifying examination. An employee whose position is being reclassified upward and who has previously passed the examination for the position within the last two years, -8- and whose name appears on an employment eligibility list for such a position, need not take a qualifying examination. Section 6. Y -Rate: When a reclassification results in a lower maximum rate of pay for the incumbent, the incumbent shall be "Y -Rated" at the salary level he/she has earned up to that time. IMI RULE V COMPENSATION Section 1. Compensation Plan: The City has established a pay plan covering all classes of positions in the City service, showing the minimum and maximum rates of pay. Section 2 Section 2a'. Amendment of Plan: The compensation plan may be amended from time to time by action of the City Council. Section 3. Salary upon Initial Hire: Department Heads shall have the discretion to place the employee at the A, B, or C step of the salary range of the classification into which the employee is hired. All employees placed at any step beyond the C step of the salary range of the classification into which the employee is hired will be at the discretion of the City Manager. Section 4. Merit Step Advancement: After six (6) months employment as a probationer an employee is eligible to advance to the next salary step if their performance evaluation shows performance of satisfactory or above and advancement is approved by the Department Head. Upon successful completion of twelve (12) months' probationary employment and a satisfactory or above performance evaluation as approved by the Department Head, the employee'will be eligible for advancement to the next salary step. Each year thereafter and with a satisfactory or above performance evaluation as approved by the Department Head, the employee will be eligible for advancement to the next salary step'.. Section 5. Merit Step Advancement for Intermittent and Seasonal Part-time Employees: After one year of employment consisting of a minimum of five hundred (500) hours an employee is eligible to advance to the next step if his or her performance evaluation shows performance of satisfactory or above and advancement is approved by the Department Head or Division Manager. An employee is eligible for a step increase on his or her second anniversary of his or her hire date or last step increase if he or she has not worked 500 hours since his or her hire date or the date of his or her last step increase. Section 6. Merit Step Increase if Evaluation is Untimely: If the employee is eligible for a step increase and an evaluation has not been completed, when the evaluation is completed, if it is satisfactory or above, the employee will receive the annual increase retroactively. Performance evaluations and Annual Work Plans will be tracked by the Human Resources Division. A step increase pending a performance evaluation may be given at the discretion of the City Manager. -10- Section 7. Amount of Merit Step Adjustments: Merit step adjustments are in approximately five percent (5%) increments to the maximum of the salary range. An employee may be given multiple step increases, not to exceed two (2) at any one time, at the recommendation of the Department Director of Division Manager and at the discretion of the City Manager. Section 8. Merit Step for Employees on Leave: Eligibility for the merit step advancement may be extended for an employee on an approved leave of absence until the employee has completed the appropriate length of service. Section 9. Effective Date of Increase: Merit increases shall be effective the first day of the pay period following the approved effective date. Section 10. Salary on Promotion: An employee promoted to a classification having a greater maximum salary will be placed on the lowest step of the new range that results in not less than a five percent (5%) increase above the employee's current regular salary. Upon recommendation of the Department Director and approval of the City Manager, the employee may be placed at a higher step. Section 11. Salary on Demotion: An employee who is demoted will be placed within the salary range for the class into which demoted. The salary will be set at the step which is lower and closest to the salary the employee was receiving before the demotion. Section 12. Salary on Reclassification: An employee who is reclassified will receive the salary set forth below. (a) If reclassified to a classification with the same salary range, the salary will not change. (b) If reclassified to a classification with a higher salary range, the salary will be determined in the same manner as a promotion. (c) If reclassified to a classification with a lower salary range, the employee will be Y -rated. Section 13. Pay Periods: The compensation to all officers and employees of the City shall be paid biweekly. Checks or electronic transfers in payment for compensation will be made available by the City to employees and officers of the City on the Friday succeeding the close of the pay period. In the event that pay day falls on a holiday payment will be made on the last work day preceding the holiday. Section 14. Bilingual Pay: Employees who are requested by the City to use bilingual skills during their scheduled work hours on a recurring basis to further the business interests of the City shall receive a bilingual premium pay differential in addition to their regular pay. (Reference: Administrative Policy P-7; Bilingual Pay Policy.) -11- Section 15. Overtime: (a) As a matter of general policy, the City does not permit employees to work overtime and will provide adequate staff to handle normal operations. However, non-exempt employees may be required to work overtime at the discretion of the Department Director or Division Manager. (b) Overtime for non-exempt employees is defined as hours assigned to be worked and actually worked in excess of forty (40) hours actually worked in the designated work week. (c) Non-exempt employees working overtime when not expressly authorized to do so, shall, to the extent authorized by law, not be compensated therefore and shall be subject to discipline. (d) Overtime assigned and worked by non-exempt employees shall be compensated at time and one half their regular rate of pay. The employee may request, and the Department Director or Division Manager shall have the unrestricted discretion to approve or not approve compensation in the form of accrued compensatory time at time and one-half pay, except an employee may not accrue more than forty (40) hours compensatory time at any time. (e) If a non-exempt employee is required to work on an observed holiday beyond the regular forty (40) hour work week, he or she shall be entitled to pay at the rate of two (2) times the regular rate of pay. (f) Employees who are exempt from the Fair Labor Standards Act (FLSA) are compensated on a salary basis and are not eligible for overtime. (Reference: Administrative policy P-2; Overtime Policies and Procedures) Section 16. Call -Out Pay: Non-exempt full time and part time employees will be paid a minimum of two (2) hours pay if called out to respond to a City emergency. Call out occurs when an employee is ordered to return to duty on a non - regularly scheduled work shift. Call out does not occur when an employee is held over from his or her prior shift or is working prior to his/her regularly scheduled shift. Section 17. Acting Pay: An employee who is provisionally appointed to an acting or interim position that is in a higher salary range than that of the class in which the employee is normally assigned shall receive acting compensation. (a) Acting pay shall be provided only for appointments with duration greater than twenty-one (21) consecutive calendar days and shall be retroactive to the effective date of the acting appointment and continue until completion of appointment. -12- (b) Such acting appointments shall be made in writing by the City Manager with a copy to the Human Resources Division. (c) Compensation shall be at the entrance salary step of the higher range or the step within the higher salary range, which would provide a minimum of five percent (5%) higher than the employee receives, whichever is greater. Section 18. Cost of Livinq Adjustment (COLA): At the adoption of the City's annual budget, a request by the City Manager may be made to the City Manager may be made to the City Council to provide a cost of living adjustment to the City's employees' compensation. The COLA is the annual Consumer Price Index (CPI) percentage as issued by the Department of Labor, Bureau of Labor Consumer Price Index for Urban Wage Earners and Clerical Workers Los Angeles -Riverside -Orange Counties, California for year ending March of the current year. The City Council has the sole discretion to adopt or modify the request at any time. -13- RULE VI HOURS OF WORK City employees may be assigned to work eight (8) hours a day five (5) days a week or assigned to the 9/80 flex plan under which they will work eighty (80) hours in a nine (9) day period. Section 1. The 9/80 Plan: Generally employees work nine (9) hours Monday through Thursday and eight (8) hours every other Friday, exclusive of meal period or nine (9) hours Tuesday through Friday and eight (8) hours every other Monday. Section 2. Five Day Work Week: Generally employees work eight (8) hours per day Monday through Friday, exclusive of meal period. Section 3. Alternate Work Schedule: Employees may be assigned to work days or hours other than those set forth in Section 1 or Section 2. Section 4. Work Week Defined: The work period or work week will begin at 12:01 p.m. on Friday and end the following Friday at 12:00 noon for all full time employees working under the 9/80 work schedule if the employee is scheduled to be off every other Friday. If the employee is scheduled to be off every other Monday, the work period will begin at 12:01 p.m. on Monday and end the following Monday at 12:00 noon. For employees working five (5) days a week, the work week or work period means, a consecutive, seven (7) day period that begins at 12:01 a.m. on Sunday and ends at 12:00 p.m. on Saturday. Section 5. Work Week Schedule Change: The City may change the work week when public necessity or convenience so requires. Section 6. Request to Change Schedule: Employees for whom personal necessity requires a different schedule than above, may make a request for the alternate schedule to the Department Director or Division Manager. If the Department Director or Division Manager agrees with the request, the request will be submitted to the City Manager for final approval. Alternate schedules must begin no earlier than 7:00 a.m. and end no later than 6:00 p.m. and will not include a shorter meal period than below. Section 7. Meal Period: Meal periods are non -paid and nonworking time and shall be one hour for all full time employees. Every effort will be made to schedule such meal period during the middle of the shift. - 14- RULE VII APPLICATIONS AND APPLICANTS Section 1. Announcement: All examinations for classes in the competitive service shall be publicized by posting announcements in City Hall, on official bulletin boards, or by such other means as the City deems advisable. The announcements shall specify the title and pay of the class for which the examination is announced, duties and responsibilities of the work to be performed, minimum requirements established, the manner of making application, and other pertinent information. Section 2. Application: Applications shall be made as prescribed on the examination announcement. Application forms shall require information covering training, experience, and other pertinent information. All applications must be signed by the person applying. Section 3. Disqualification: The City Manager's designee may reject any application which indicates on its face that the applicant does not possess the minimum qualifications required for the position or for any material cause which, in the judgment of the City Manager's designee would render the applicant unsuitable for the position. Falsification of any information presented on the employment application shall be grounds for rejection/disqualification from the recruitment and/or termination from employment, if applicant is appointed to the position. -15- RULE VII'l' EXAMINATION Section 1. Types of Examinations: The selection techniques used in the examination process shall measure the knowledge and abilities of the applicants to execute the duties and responsibilities of the class to which they seek to be appointed. Examinations shall consist of selection techniques which will test fairly the qualifications of candidates. The City Manager or designee may select the appropriate examination(s) to be utilized in the selection process. Section 2. Promotional Examinations: All candidates for promotion must meet the minimum qualifications identified by the appointing authority. The appointing authority will determine whether the examination is open competitive or a promotional appointment. Section 3. Continuous Examinations: Open -competitive examinations may be administered periodically for a single class as the needs of the service require. Names shall be placed on employment lists, in order of final scores, for a period of not more than one (1) year, unless extended by the City Manager's designee. Section 4. Conduct of Examinations: The City Manager's designee will determine the manner and methods and by whom examinations shall be prepared and administered. Section 5. Reasonable Accommodation in Testing: Should an otherwise qualified applicant who is disabled request a reasonable accommodation for any part of the testing process the City may modify the process to reduce or eliminate the testing barrier. Section B. Post Offer Physical Examinations and Background Investigations: As a condition of an offer of City employment all candidates must successfully pass a post -offer physical which may include a and substance abuse examination and are subject to fingerprinting and a background investigation. Candidates being considered for employment will be sent to a City authorized physician at the City's expense. Section 7. Immigration Reform and Control Act of 1986: In compliance with the Immigration Reform and Control Act f 1986, all new employees must very identity and entitlement to work in the United States by providing required documentation. Section 8. Notification of Selection Process Results: Each person competing in an employment selection process shall be given notice of placement or non - placement on the employment eligibility list. -16- RULE IX EMPLOYMENT ELIGIBILITY LISTS Section 1. Employment Eligibility Lists: As soon as possible after the completion of an examination, the City Manager's Designee will prepare and keep available, an employment eligibility list consisting of the names of applicants who qualified in the examination, arranged alphabetically. Section 2. Duration of Lists: Employment eligibility lists, other than those from a continuous examination, shall remain in effect for one (1) year, unless exhausted sooner, and may be extended or abolished, prior to their expiration dates, by action of the City Manager's Designee, but in no event shall an employment eligibility list remain in effect for more than two (2) years. Section 3. Removal of Applicants from Lists: The name of any person appearing on an employment eligibility list shall be removed by the City Manager's designee if the person eligible requests in writing that his or her name be removed, fails to respond to a notice mailed to his or her last known address, or has been certified for appointment and has not been appointed. Section 4. Use of Employment Eligibility Lists: A vacant position may be filled by the appointment of a person whose name is on an employment eligibility list for the same position or a position in the same classification. -17- RULE X METHOD OF FILLING VACANCIES Section 1. Types of Appointment: Except as otherwise provided herein, all vacancies in the competitive service shall be filled by re-employment, transfer, voluntary demotion, promotion or from eligibles certified by the City Manager's designee from an appropriate employment eligibility list. Section 2. Notice to Human Resources: Whenever a vacancy occurs, the Department Director or Division Manager shall submit a request to the City Manager's Designee for authorization to fill the position. The City Manager's Designee shall advise the Department Director or Division Manager as to the availability of candidates from reemployment lists, requests for transfer, or demotion of eligible candidates on an employment or promotional list. The City Manager's Designee may hold a new examination and establish a new employment eligibility list, if requested. Section 3. Appointment: After interview, the Department Director or Division Manager shall recommend an employment offer to be made by the City Manager's Designee. The City Manager's Designee shall thereupon notify the person of the conditional offer of appointment, subject to passing a required medical examination and all background investigations. Section 4. Veterans Preference: If candidates are identically qualified for appointment, the appointment will be offered to the candidate who is a veteran. Section 5. Temporary Assignments: Employees may be temporarily assigned higher or lower duties without a change in pay. Such action shall not be deemed as a transfer, demotion, promotion, or reclassification. In all cases where periodic or regular variations in assignments occur because of seasonal needs, the temporary change of duties or a change of the work schedule, of such variations shall be considered as incidental to the position. Section 6. Extended Assignment to Vacant Higher Position: Employees assigned to perform duties in a vacant higher level regular position in excess of twenty-one (21) consecutive calendar days as authorized by the City Council shall be entitled to a salary rate increase to the higher level for the time actually worked in the assignment. (See Rule V, Section 17, Acting Pay.) The duration of such assignment to a vacant higher position shall not exceed one (1) year. It is the responsibility of the Department Director or Division Manager to request such salary rate increase to the City Manager's Designee for approval. Section 7. Vacancies Outside the Competitive Service: Vacancies outside the competitive service (e.g., executive positions, seasonal part time, intermittent part time) will be filled by a process deemed appropriate by the City Manager's Designee. -18- RULE XI PROBATIONARY PERIOD Section 1. Probationary Period: Upon initial and promotional appointment to a position in the competitive service an employee must serve a probationary period of one year of actual and continuous service. Periods of time on paid or unpaid leave excluding five (5) days (consecutive or not) automatically extends the probationary period by the number of days the employee is on leave. The City Council may, by resolution, establish a longer probation period for a specified class prior to the time of appointment. Section 2. Purpose of Probationary Period: During the probationary period, the supervisor shall review, examine, and monitor the conduct, capacity, efficiency, skill, responsibility, integrity, and effectiveness of an employee to determine whether the employee is fully qualified for employment in the classification and position to which the employee has been appointed. Section 3. Extension of Probationary Period: The probationary period may be extended by the Department Director or Division Manager for a period up to six (6) months by written notice to the employee prior to the expiration of the original probationary period. Section 4. Reduction of Probationary Period: The probationary period may be shortened by the authority of the City Manager. Section 5. Rejection During Probation: At any time during the probationary period an employee may be rejected from employment without cause and without right of appeal. Section 6. Reiection During Probation From a Promotional Position: A promoted employee who has attained regular status in another classification of City employment who does not successfully complete the probationary period in the promoted class shall be returned to the former classification or a comparable classification without right to review or appeal unless terminated for cause. Section 7. Use of Leave During Probation: Authorized use of accrued sick leave may be used any time by the probationary employee during the probationary period. Vacation leave, Administrative Leave, and Floating Holiday hours are accrued during the probationary period, but shall be available for use upon completion of six (6) months of service unless otherwise approved by the City Manager. -19- RULE XII ATTENDANCE AND LEAVES Section 1. Attendance: Full time employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays, and leave. Absence of any employee without leave may result in disciplinary action, including discharge. Section 2. Vacation Leave: Vacation is a right, earned as a condition of employment, to a leave of absence with pay for the recreation and well being of the employee. If an employee has exhausted sick leave, vacation may be used for sick leave upon request of the employee and with approval of the Department Director or Division Manager. (a) Employees shall accrue, on a pro -rata basis, vacation leave for completed pay periods. Such vacation allowance shall be available for use on the first day following the pay period in which it is earned; however, vacation allowance shall be available for use after the completion of six (6) months by a probationary employee. Length of Service from Annual Vacation Accrual Benefit Date Allowance Rate On employment through 3.08 hours 59 months 80 hours per pay period 60 months through 4.62 hours 119 months 120 hours per pay period 6.15 hours 120 months and up 160 hours per pay period (b) Maximum Accrual'; Vacation leave may be accrued to a maximum of 360 hours. Once the 360 UQ hour maximum accumulation is reached, no further vacation leave shall accrue until the employee reduces the accumulation below the maximum. (c) Waiver of Maximum Accrual: A waiver must be requested by the Department Director or Division Manager and approved by the City Manager, for a period not to exceed thirteen (13) pay periods per fiscal year. If at the end of the waiver period the maximum accrual amount is exceeded, vacation accrual for the affected employee will stop. No further vacation time will be accrued until the employee's vacation leave balance is below the maximum accrual amount. In the event that the failure to utilize vacation past the thirteen pay period waiver is due to the City's inability to allow an employee to take vacation (as opposed to an -20- employee's delay and/or failure to request vacation time off), the employee may, with City Manager authorization, continue to accrue vacation. (d) Vacation Leave Cash Out Option: Once 240 hours of vacation leave accumulation is reached, the employee is eligible to receive at their request, a one time per year "cash out" payment for up to 80 40 hours of the accrued vacation leave provided he or she has used 80 hours of his or her accrued vacation leave during the previous twelve months. The "cash out" value is at the employee's current rate of pay regardless of the rate at which the vacation leave hours were earned. (e) The minimum charge against accumulated vacation leave shall be fifteen (15) minutes or multiples thereof. Vacation leave shall be compensated at the employee's base rate of pay. (f) The time during a calendar year at which an employee may take his or her vacation shall be determined by the Department Director of Division Manager with due regard for the wishes of the employee and particular regard for the needs of the City. (g) All vacation leave requests shall be made with as much advance notice as possible, and prior approval must be given by the employee's supervisor and Department Director or Division Manager. When circumstances warrant and advance notice is impractical, Department Directors or Division Managers may approve the use of vacation leave for emergency absences. If an employee does not request time off in advance and simply does not show up for work, the Department Director or Division Manager may deny the use of vacation time or any leave accruals, and said employee may be subject to disciplinary action. (h) When a fixed holiday falls within a vacation period, the holiday time shall not be charged against an employee's earned vacation benefits. (i) Employees who terminate or retire shall be paid for all accrued vacation leave earned at their base rate of pay at the time of their separation of employment. Q) Exempt employees, for the purpose of accrual, shall be credited with previous municipal experience, up to five (5) years of full-time service. (k) Employees on Unpaid Leave: Employees on Unpaid Leave do not accrue Vacation Leave. (1) Employees not Eligible for Vacation: Temporary (working less than 1,040 hours), emergency, seasonal part time, and intermittent part time do not accrue Vacation Leave. -21- (m) Prorated Benefits: Regular part time employees receive prorated Vacation Leave. Section 3. Sick Leave: Sick Leave is defined as the authorized absence from duty of an employee because of physical or mental illness, injury, pregnancy, confirmed exposure to a serious contagious disease, or for a medical, optical, or dental appointment. Sick leave may also be taken to care for a member of the immediate family who requires the attention of the employee, for a maximum of forty-eight (48) hours per calendar year. Sick leave shall not be considered as a privilege which an employee may use at his/her discretion, but shall be allowed only in case of necessity and actual sickness or disability. (a) Accrual: Employees shall accrue sick leave for each payroll period completed, prorated on the basis of eighty (80) hours per year, or 3.08 hours per pay period. Sick leave shall be available for use the first day following the payroll period in which it is earned. (b) Minimum Use: The minimum charge against accumulated sick leave shall be fifteen (15) minutes or multiples thereof. Approved sick leave with pay shall be compensated at the employee's base rate of pay. (c) Proof of Illness: The Department Directors or Division Manager may require a physician's certificate. (d) Notification: In order to receive compensation while absent from duty on sick leave, the employee must notify his/her immediate supervisor or Department Director or Division Manager prior to, or within two (2) hours after the time set for the beginning of his/her regular duties. The Department Director or Division Manager may request a certificate issued by a licensed physician or other satisfactory proof of illness before sick leave is granted. (e) Violations: Violation of sick leave privileges may result in disciplinary action when in the opinion of the Department Director or Division Manager, the employee has been excessively absent or has abused such privileges. Employees who do not call in within two (2) hours of the start of their assignment may be denied use of sick leave. (g) Sick Leave Payout: Each full time employee shall be paid annually for all accrued sick leave in excess of the maximum allowable accumulation of two hundred (200) hours at a rate of one-half (1/2) the employee's current wage at the time of payment. Said payment is to be made during the month of December, or at such other time as the City Manager may determine, at his/her absolute discretion, as appropriate. After five (5) years of service, when an employee retires, resigns or terminates in good standing, that employee will be paid all accumulated Sick Leave at a rate of one-half (1/2) of the employee's current rate of pay at his or her date of separation. s#M (h) Use of Family Sick Leave: Use of family sick leave shall be limited to half the yearly sick leave entitlement in any one (1) year period. The amount of sick leave available is limited to what the employee accrued prior to utilizing sick leave for this purpose. Sick leave taken for this purpose shall be allowed only in the case of necessity of and actual illness of an employee's child, parent, or spouse or domestic partner as determined by the City Manager. In order to receive sick leave with pay for this purpose, the employee shall notify the Department Head prior to or within two (2) hours after the start of the employee's scheduled work shift. The City Manager may, if he/she deems necessary, require the employee to file a Physician's Certificate (regarding the illness of the employee's child, parent, spouse, or domestic partner) or an Affidavit stating the cause of absence. Use of sick leave under this section shall not extend the maximum period of leave to which an employee is entitled under Family and Medical Leave. (i) Employees on Unpaid Leave: Employees on unpaid leave do not accrue Sick Leave. (j) Seasonal and Intermittent Part Time Employees: Seasonal and intermittent part time employees do not accrue Sick Leave. (k) Part-time regular emDloyees: Part time regular employees accrue prorated sick leave. Section 4. Occupational Injury or Illness Leave: Whenever a person is compelled to be absent from employment with the City on account of injury or illness arising out of or in the course of that employee's employment as determined by the Workers' Compensation Act, the employee may elect to apply pro -rated accrued sick leave, if any, to such absence to receive compensation of an amount of the difference between the compensation received under the Workers' Compensation Act and that of the employee's regular pay, not to exceed the amount of the employee's earned sick leave. An employee, in such instance, may also elect to use any earned vacation time in like manner after sick leave is exhausted. An employee, in such instance, may also elect to use any earned Administrative Leave and Floating Holiday hours in like manner after sick leave and earned vacation time is exhausted. Employees shall receive full salary in lieu of Workers' Compensation benefits and paid sick leave for the first twenty- four (24) hours following an occupational injury or illness, if authorized absence is by order of an accepted physician under the Workers' Compensation sections of the California Labor Code. Section 5. Bereavement Leave: When circumstances are such and the City Manager determines that conditions warrant, twenty-four (24) hours of paid bereavement leave may be used per occurrence in the event of death of a spouse, domestic partner, child, brother, sister, parent, parents -in-laws, or grandparent of a full time employee. With City Manager approval, up to an additional sixteen (16) hours of sick leave may be used to supplement bereavement leave. -23- In the event of the death of other relatives and with City Manager approval, twenty-four (24) hours of Sick Leave may be used per occurrence for the death of aunts, uncles, or other individuals related by blood or marriage. Section 6. Jury Duty and Witness Leave: If a regular full time employee is required to serve as a juror, such employee shall receive regular pay while actually performing jury service. Amounts received by such employee as payment for service as a juror except mileage paid to the employee need to be reimbursed to the City. Part time regular employees shall receive prorated pay based on the hours they were scheduled to work. Employees will be required to provide a Jury Duty Certification form to their supervisor, to be attached to their time sheet for that time period. Employees shall be granted leave with pay when subpoenaed to testify as a witness other than as a party or an expert. Employees absent from work due to jury duty or witness leave must daily notify their immediate supervisor or department head of the status of their leave. Section 7. Administrative Leave'. FLSA exempt employees are allowed eighteen (18) hours of administrative leave per fiscal year. F=XeGUtiVe Management ernpleyee-� \ I 'si* (36) �► Department Directors are allowed forty-five 45 �' hours of Administrative Leave per fiscal year and designated Division Managers are allowed thirty-six (36) hours of Administrative Leave per fiscal year. Additional hours of leave may be authorized by the City Manager, based on the number of total hours the individual works over and above forty (40) hours per work week. Administrative Leave may be accumulated and carried over to the following year for a maximum of two (2) years. Administrative leave must be used by June 30 of the second fiscal year. If not used, the exempt employee will cease accruing Administrative Leave for the following year. Requests must be approved by the immediate supervisor and the City Manager. Use of Administrative Leave will be authorized at the convenience of the City and the work schedule. Section 8. Family and Medical Leave: (a) Statement of Policy: To the extent not already provided for under current leave policies and provisions, the City will provide family and medical care leave for eligible employees as required by state and federal law. (b) Definitions: (1) 12 -Month Period means a rolling 12 -month period measured backward from the date leave is taken and continuous with each additional leave day taken. -24- (2) Child means a child under the age of 18 years of age, or 18 years of age or older who is incapable of self-care because of a mental or physical disability. An employee's child is one for whom the employee has actual day-to-day responsibility for care and includes, a biological, adopted, foster or step- child, legal ward, or a child of a person standing in loco parentis. (3) Parent means the biological parent of an employee or an individual who stands or stood in loco parentis (in place of a parent) to an employee when the employee was a child. This term does not include parents-in-law. (4) Domestic Partner means a person as defined in the Family Code. (c) Reasons For Leave: Leave is only permitted for the following reasons: (1) The birth of a child or to care for a newborn of an employee; (2) The placement of a child with an employee in connection with the adoption or foster care of a child; (3) Leave to care for a child, parent, or spouse who has a serious health condition; or (4) Leave because of a serious health condition that makes the employee unable to perform the functions of his/her position. (d) Employees Eligible For Leave An employee is eligible for leave if the employee: (1) Has been employed for at least 12 months; and (2) Has been employed for at least 1,250 hours during the 12 - month period immediately preceding the commencement of the leave. (e) Amount of Leave: Eligible employees are entitled to a total of 12 workweeks of leave during any 12 -month period. (1) Minimum Duration of Leave: If leave is requested for the birth, adoption or foster care placement of a child of the employee, leave must be concluded within one year of the birth or placement of the child. In addition, the basic -25- minimum duration of such leave is two weeks. However, an employee is entitled to leave for one of these purposes (e.g., bonding with a newborn) for at least one day, but less than two weeks duration on any two occasions. If leave is requested to care for a child, parent, spouse, or the employee him/herself with a serious health condition, there is no minimum amount of leave that must be taken. However, the notice and medical certification provisions of this policy must be complied with. (2) Spouses Both Employed by the City: In any case in which a husband and wife both employed by the City are entitled to leave, the aggregate number of workweeks of leave to which both may be entitled may be limited to 12 workweeks during any 12 -month period if leave is taken for the birth or placement for adoption or foster care of the employees' child (i.e., bonding leave). This limitation does not apply to any other type of leave under this policy. (f) Employee Benefits While On Leave: Leave under this policy is unpaid. While on leave, employees will continue to be covered by the group health insurance to the same extent that coverage is provided while the employee is on the job. If an employee fails to return to work after his/her leave entitlement has been exhausted or expires, the City shall have the right to recover its share of health plan premiums for the entire leave period, unless the employee does not return because of the continuation, recurrence, or onset of a serious health condition of the employee or his/her family member which would entitle the employee to leave, or because of circumstances beyond the employee's control. The City shall have the right to recover premiums through deduction from any sums due the City. (g) Substitution of Paid Accrued Leaves: While on leave under this policy, as set forth herein, an employee may elect to concurrently use paid accrued leaves. Similarly, the City may require an employee to concurrently use paid accrued leaves after requesting Family Medical Leave (FMLA) and/or California Family Rights Act (CFRA) leave, and may also require an employee to use Family and Medical Care Leave concurrently with a non-FMLA/CFRA leave which is FMLA/CFRA-qualifying. (1) Employee's Right to Use Paid Accrued Leaves Concurrently With Family Leave: Where an employee has earned or accrued paid vacation, administrative leave, or -26- compensatory time, that paid leave may be substituted for all or part of any otherwise unpaid leave under this policy. As for sick leave, an employee is entitled to use sick leave as set forth in Section 3. (h) Medical Certification: Employees who request leave for their own serious health condition or to care for a child, parent or a spouse who has a serious health condition must provide written certification from the health care provider of the individual requiring care if requested by the City. (i) Reinstatement Upon Return From Leave (1) Right to Reinstatement: Upon expiration of leave, an employee is entitled to be reinstated to the position of employment held when the leave commenced, or to an equivalent position with equivalent employment benefits, pay, and other terms and conditions of employment. (2) Employee's Obligation to Periodically Report on His/Her Condition: Employees may be required to periodically report on their status and intent to return to work. This will avoid any delays to reinstatement when the employee is ready to return. (3) Fitness for Duty Certification: As a condition of reinstatement of an employee whose leave was due to the employee's own serious health condition that made the employee unable to perform his/her job, the employee must obtain and present a fitness -for -duty certification from the health care provider that the employee is able to resume work. Failure to provide such certification will result in denial of reinstatement. Section 9. California Paid Family Leave: California Paid Family Leave is a component of State Disability Insurance (SDI). Unlike SDI, which partially covers employee wage loss due to a personal disability, injury, or pregnancy, Paid Family Leave Insurance partially covers employee wage loss for individuals who need to care for a seriously ill family member or bond with a new child. Benefits are available for a maximum of six (6) weeks in a twelve (12) month period. Paid Family Leave and SDI are both administered by the Employment Development Division (EDD) and funded entirely by mandatory payroll deductions. Section 10. Pregnancy Disability Leave: An employee is eligible for six (6) weeks of unpaid leave for a normal pregnancy, childbirth or related medical condition and up to four (4) months when there is certification by a physician that there is a disability due to the pregnancy, childbirth, or related medical condition. -27- (a) During the pregnancy disability leave time, paid leave may be charged to accrued benefit time such as vacation, administrative leave and floating holidays, at the employee's request. In addition, accrued sick leave may be used at the employee's request, in accordance with Section 3. (b) Health insurance benefits shall continue for the duration of the pregnancy disability leave under the same conditions as if the employee had continued employment. If the employee fails to return to work after the period of leave to which the employee is entitled has expired, the City is entitled to recover the premiums paid on behalf of the employee for maintaining coverage. (c) The City Manager may require the employee to file a physician's certificate or personal affidavit and to provide reasonable notice of the date the leave will begin and the estimated duration of the leave. Section 11. Election Leave: If a full time employee does not have sufficient time outside of working hours to vote at a statewide election, the voter may, without loss of pay, take off enough working time, which when added to the voting time available outside of working hours will enable the voter to vote. Regular part time employees are eligible for election leave based upon hours scheduled to work. No more than two (2) hours of the time taken off for voting shall be without loss of pay. The time off for voting shall be only at the beginning or end of the regular work shift, whichever allows for the greatest free time for voting and the least time off from the regular working shift, unless otherwise mutually agreed upon. The employee shall give the supervisor at least two working days' notice that time off for voting is desired. Section 12. School Visit Leave: Full time and regular part time employees are permitted to use up to forty (40) hours of leave for the purpose of participating in their children's school activities. Vacation or Floating Holiday Leave must be used for this purpose, and the request for time off cannot exceed eight (8) hours in any calendar month. In the event the employee has exhausted all accrued vacation leave and floating holiday hours, leave without pay may be taken for this purpose and all hour restrictions apply. Section 13. Leave of Absence Without Pay: The City Manager may grant a regular employee a leave of absence without pay for a period not to exceed one (1) year. No such leave shall be granted except upon written request of the employee, setting forth the reason for the request. Approval will be in writing. Upon expiration of a regularly approved leave or within a reasonable period of time after notice to return to duty, the employee shall be reinstated in the classification held at the time leave was granted. Failure on the part of an employee on leave to report promptly at its expiration, or within a reasonable time after notice to return to duty shall be cause for discharge. Such leave of absence shall not be counted as a break in service for purposes of satisfying the continuous employment requirement for vacation allowance. -28- (a) Department Directors may grant an employee leave of absence without pay for a period not to exceed one (1) calendar week. Such leaves shall be reported to the City Manager. (b) An employee on leave of absence without pay does not accrue sick leave, vacation time, or receive benefits while on leave. Such employee does not lose or forfeit any sick leave or unpaid vacation time that had been accumulated prior to the time being granted. Section 14. Military Leave: Military leave shall be granted to City employees in accordance with the provisions of current federal and state law. Section 15. Political Leave: Political leave declared a candidate for public Leave of Absence Without Pay. I r"RE shall be granted to any employee who is office subject to the provisions of Section 13: RULE XIII HOLIDAYS Section 1. Holidays Observed: The City of Diamond Bar's observed paid holidays are as follows: 1. New Year's Day (January 1) 2. President's Day (observed the third Monday in February) 3. Memorial Day (observed the last Monday in May) 4. Independence Day (July 4) 5. Labor Day (observed the first Monday in September) 6. Veteran's Day (November 11) 7. Thanksgiving Day 8. Day following Thanksgiving Day 9. Christmas Eve (December 24) 10. Christmas Day (December 25) 11. Sixteen (16) Floating Holiday Hours Holidays which fall on Saturday shall be observed the preceding Friday and holidays which fall on Sunday shall be observed on the following Monday. Paid holidays are only for the observed days. If an observed holiday falls on a nine (9) hour work day under the 9/80 work schedule, those employees on the 9/80 schedule shall receive nine (9) hours of holiday pay and those employees on a traditional work schedule shall receive eight (8) hours of holiday pay. If an observed holiday falls on an eight (8) hour work day under the 9/80 work schedule, those employees on the 9/80 schedule shall receive eight (8) hours of holiday pay and those employees on the traditional work schedule shall receive eight (8) hours of holiday pay. Section 2. Floatinq Holidays: (a) Each full time employee is allowed sixteen (16) hours per calendar year, January through December. Regular part time employees are allowed prorated floating holiday hours per calendar year, January through December based upon hours scheduled to work. (b) Floating Holiday hours are not cumulative and must be used during the above period or said employee will lose the allocated hours. (c) Each employee must submit a request in advance, and approval must be given by the employee's supervisor and Department Director. (d) An employee is eligible to use floating holiday hours as they are allocated. -30- (e) Floating Holiday hours may be used in lieu of sick leave only if all other benefit time has been exhausted. Section 3. Eligibility for Holidays: All employees are eligible for holidays except the following: (a) Seasonal and intermittent part time employees. (b) Temporary employees. Section 4. Prorated Holiday Pay: Regular part time employees shall receive prorated pay for any holiday on which they are scheduled to work. -31- RULE XIV CHANGES IN EMPLOYMENT STATUS Section 1. Transfer: An employee may be transferred by the City Manager at any time from one position to another position in the same or comparable class. A comparable class is one with essentially the same maximum salary limits, involves the performance of similar duties and requires substantially the same basic qualifications. If the transfer involves a change from the jurisdiction of one supervising official to another, both must consent thereto unless the City Council orders the transfer for purposes of economy or efficiency. Transfer shall not be used to effectuate a promotion, demotion, advancement, or reduction, each of which may be accomplished only as provided in these Rules. No person shall be transferred to a position for which he/she does not possess the minimum qualifications. Section 2. Promotion: When practicable and consistent with the best interests of the City, vacancies in the competitive service may be filled by promotion from within the competitive service. All candidates for promotion must meet the minimum qualifications identified by the appointing authority. If, in the opinion of the City Manager or designee, a vacancy in the position could be filled better by an open, competitive examination instead of a promotional appointment, he/she shall arrange for an open competitive examination and for the preparation and certification of an eligibility list. Section 3. Demotion: The appointing authority may demote an employee whose ability to perform his/her required duties falls below standard or a regular employee for disciplinary cause. No employee shall be demoted to a position for which he/she does not possess the minimum qualifications. Such action shall be subject to appeal. Section 4. Suspension: The appointing authority may suspend an employee at any time or a regular employee for cause. Section 5. Reclassification: The appointing authority may reclassify a position from one class to another if there has been a gradual accretion or reduction of duties and/or responsibilities over time. -32- RULE XV SEPARATION FROM EMPLOYMENT Section 1. Job Abandonment: An employee is deemed to have resigned if the employee is absent for three (3) consecutive workdays without prior authorization and without notification during the period of absence. On the second working day of unauthorized absence, the supervisor shall send a telegram or overnight letter to the employee's last known address informing the employee that if the employee fails to report to work within one (1) workday, or receive authorization for such absence, the employee will be deemed to have resigned. Employees separated from employment for job abandonment will be reinstated with such charge removed from the employee's record upon presentation of justification for absence such as severe accident, severe illness, false arrest, or mental or physical impairment which prevented notification. Employees have no right to appeal if deemed to have resigned as a result of job abandonment. Section 2. Discharge: An at -will employee may be discharged at any time. An employee in the competitive service may be discharged for cause at any time by the Department Director. Any employee in the competitive service who has been discharged is entitled to rights provided in Rule XVII. Section 3. Lav -off: The City Manager may lay off an employee in the competitive service because of change in duties or organization or shortage of work or funds. (a) Notification: Employees to be laid off shall be given, whenever possible, at least ten (10) calendar days prior notice. (b) Order of Layoff: Employees shall be laid off in the inverse order of their seniority in their classification in the department. Seniority shall be determined based upon date of hire in the classification and higher classifications in the department. A lay off out of the inverse order of seniority may be made if, in the City's judgment, retention of special job skills are required. Within each class, employees shall be laid off in the following order, unless special skills are required: temporary, intermittent and seasonal part-time, part time hired after October 18, 2005, probationary, part time regular, full time regular. In cases where there are two or more employees in the classification in the department from which the lay off is to be made who have the same seniority date, such employees shall be laid off on the basis of the last evaluation rating in the class, providing such rating has been on file at least thirty (30) days and no more than twelve (12) months prior to lay off, as follows: a) First, all employees having ratings of "Needs Improvement or Does Not Meet Expectations;" b) Second, all employees having ratings of "Meets Expectations;" c) Third, all employees having ratings of "Consistently Exceeds Expectations or Frequently Meets and Exceeds Expectations." -33- (c) Re-employment Rights for Laid -off Employees: Regular employees, who have received a satisfactory or better evaluation for the twelve (12) months prior to lay off, have completed their probationary period and who have been laid off shall be automatically placed on a re-employment list for one year for the classification from which they were laid off. Section 4. Resignation: An employee wishing to leave the competitive service in good standing shall file with the supervising official at least ten (10) working days before leaving the service, a written resignation stating the effective date and reasons for leaving. Failure to give such notice shall mean the employee did not terminate in good standing, unless the City Manager has waived the two-week notice requirement. Failure to comply with this rule shall be entered on the service record of the employee and be cause for denying future employment by the City. A resignation becomes final when accepted by the City Manager and cannot be withdrawn. Section 5. Reinstatement: A regular employee who has resigned, or has otherwise been separated while in good standing, may be considered for reinstatement, upon recommendation of the department head and approval of the City Manager, to a position in the former employee's same or comparable classification or a lesser classification for a period of two (2) years after resignation or separation provided such a position is vacant and available. The employee shall be reinstated to the salary range and step held at the time of resignation or separation and shall receive a new anniversary date which shall be the first date of employment upon reinstatement. The employee will serve a new probationary period. -34- RULE XVI REPORTS AND RECORDS Section 1. General: The City maintains a personnel file on each employee. An employee's personnel file shall contain only material that is necessary and relevant to the administration of the City's personnel program. Personnel files are the property of the City, and access to the information they contain is restricted. Section 2. Notifying City of Changes in Personal Information: Each employee is responsible to promptly notify the employee's supervisor and the City Manager's designee of any changes in relevant personal information, including • Mailing address • Telephone number • Persons to contact in emergency • Number and names of dependents Section 3. Location of Personnel Files: The personnel files will be kept secure and confidential by the person assigned the Human Resources function. Section 4. Medical Information: a. Separate Confidential Files. All medical information about an employee or applicant is kept separately and is treated as confidential, in accordance with federal and state law. b. Information in Medical Files. The City will not obtain medical information about an employee or applicant except in compliance with the California Confidentiality of Medical Information Act. To enable the City to obtain certain medical information, the employee or applicant may need to sign an authorization for release of employee medical information. C. Access to Medical Information. Access to employee or applicant medical information shall be strictly limited to only those with a legitimate need to have such information for City business reasons. In the case of an employee with a disability, managers and supervisors may be informed regarding necessary restrictions on the work or duties of the employee and necessary accommodations. Section 5. References and Release of Information in Personnel Files: a. Public Information: Upon request, the City will release to the public information about its employees as required by the Public Records Act. The City will not disclose personnel information that it considers would constitute an unwarranted invasion of personal privacy. b. Reference Checks: All requests from outside the City for reference checks or verification of employment concerning any current or former employee must be referred to the City Manager's designee. Information will be released only if the -35- employee signs an authorization for release of employment information, except that without such authorization, the following limited information will be provided: dates of employment and salary upon departure. Managers and supervisors should not provide information in response to requests for reference checks or verification of employment, unless specifically approved by the City Manager on a case-by-case basis. Section 6. Employee Access to Personnel File. (a) Inspection of File: An employee may inspect his or her own personnel file at reasonable times and at reasonable intervals. An employee who wishes to review his or her file should contact the City Manager's designee to arrange an appointment. The review must be done in the presence of a Human Resources staff member. Section 7. Destruction of Records: Personnel files and payroll records shall be kept permanently. Records relating to personnel recruitment, including correspondence, applications, examinations, and reports may be destroyed after five (5) years. (Reference: Records Retention Schedule) -36- Section 1 Section 2 RULE XVII GRIEVANCE PROCEDURES Definition: (a) Grievance: Except as otherwise excluded, a "grievance" is a written allegation by an employee, submitted as herein specified, claiming violation(s) of the specific express terms of the Personnel Rules and Regulations and for which there is no other specific method of review provided by City law. Disputes concerning the applicability of the Grievance Procedure that persist through the third level shall be submitted for determination by a court, unless the grievant and the City agree otherwise. (b) Grievant: A grievant is an employee or group of employees adversely affected by an act or omission of the City. (c) Day: A day is any day the -agency is open to the public, that is any day except Saturdays, Sundays, and legal holidays recognized by the City. (d) Exclusions: 1. The procedure is not to be used for the purpose of resolving complaints, requests or changes in wages, hours and working conditions. 2. The procedure is not to be used to challenge the content of employee evaluations or performance reviews. 3. The procedure is not to be used to challenge the decision to reclassify, layoff, deny reinstatement, or deny a step or merit increase to an employee. 4. This procedure is not to be used in cases of oral reprimand, written reprimand, reduction in pay, demotion, suspension, or termination. 5. This procedure is not to be used to challenge violation of law or past practice. 6. This procedure is not to be used to challenge examinations or appointment to positions. Procedure: Step 1: Informal Discussion: The grievant shall discuss the grievance with his/her immediate supervisor on an informal basis in an effort to resolve the grievance. The grievance will be considered waived if not presented to the -37- immediate supervisor within ten (10) working days following the day the event occurred upon which the grievance is based. The immediate supervisor shall respond within five (5) working days following the meeting with the grievant. Failure of the immediate supervisor to respond within such time limit shall entitle the grievant to process the grievance at the next step. Step 2: First Level of Review: If the grievance is not settled at Step 1, the grievant may submit the grievance in writing to his/her supervisor within five (5) working days of the receipt of the grievance response at Step 1. Failure of the grievant to deliver the written grievance shall constitute a waiver of the grievance. The supervisor shall meet with the grievant and a written decision and statement of facts and issues shall be rendered to the grievant within ten (10) working days from the date of the written grievance. Failure of the supervisor to respond within such time limit shall entitle the grievant to process his/her grievance at the next level of review. Step 3: Department Director or Division Manager Review (Second Level): If the grievance is not settled at Step 2, the grievant may submit the grievance to the Department Director or Division Manager within five (5) working days of receipt of the Step 2 grievance response. Failure of the grievant to deliver such written notice shall constitute a waiver of the grievance. The department head shall meet with the grievant, and a written decision and statement of facts and issues shall be rendered to the grievant and representative, if any, within ten (10) working days from the date of service. Failure of the Department Director or Division Manager to respond within such time limit shall entitle the grievant to process the grievance at the next level of review. Step 4: City Manager Review (Final Level): If the grievance is not settled at Step 3, the grievant may serve written notice of the grievance to the City Manager within five (5) working days following receipt of the grievance response at Step 3. Failure of the grievant to serve such notice shall constitute a waiver of the grievance. The City Manager shall meet with the grievant and a written decision and statement of facts and issues shall be rendered to the grievant and representative, if any, within fifteen (15) working days from the date of service. The City Manager's decision shall be final. Section 3. Right of Grievant to Representation: The grievant has the right to be represented by any person or attorney he/she may select during the various stages of the grievance procedure. Section 4. Reprisals: Employees shall be insured freedom from reprisal for using the grievance procedure. -38- RULE XVIII DISCIPLINE Section 1. Types of Disciplinary Action: (a) Oral Warning: A formal discussion with an employee, usually by the employee's immediate supervisor, about performance or conduct problems, the need for the employee to improve and what specific improvement is expected. The employee's supervisor shall make a written record of the warning. (b) Written Reprimand: A formal written notice to the employee regarding performance or conduct problems, the need for the employee to improve and what specific improvement is expected. The written reprimand goes in the employee's personnel file. The employee may respond in writing to the written reprimand within fourteen (14) days. The response will be placed in the personnel file with the written reprimand. (c) Suspension: Removal of an employee from duty without pay for a specified period. (d) Reduction in Pay: A reduction in pay from the employee's current step within a pay range to a lower step within that same pay range. (e) Demotion: A reduction in status and salary from one classification to another classification having a lower salary range. (f) Dismissal or Discharge: Separation from employment of an employee for cause. Section 2. Grounds for Disciplinary Action Involving Regular Employees: Grounds for discipline include, but are not limited to, the following: (a) Fraud in securing employment or making a false statement on an application for employment. (b) Incompetency; i.e., the inability to comply with the minimum standard of an employee's position for a significant period of time. (c) Inefficiency or inexcusable neglect of duty, i.e., failure to perform duties required of an employee within his/her position. (d) Willful disobedience or insubordination, a willful failure to submit to duly appointed and acting supervision or to conform to duly established orders or directions of persons in a supervisory position or insulting or demeaning a supervisor or manager. (e) Dishonesty. -39- (f) Possession, distribution, sale, use, or being under the influence of alcohol or illegal drugs or narcotics while on duty or while operating a City vehicle or potentially dangerous equipment leased or owned by the City. (g) Excessive absenteeism. (h) Inexcusable absence without leave. (i) Abuse of sick leave, i.e., taking sick leave without a doctor's certificate when one is required, or misuse of sick leave. (j) The conviction of either a misdemeanor or a felony related to the position held will constitute grounds for dismissal of any employee. The record of conviction will be conclusive evidence of the fact that the conviction occurred. The City Manager may inquire into the circumstances surrounding the commission of the crime in order to support the degree of discipline. A plea or verdict of guilty, or a conviction showing a plea of nolo contendere is deemed to be a conviction within the meaning of this Section. (k) Discourteous treatment of the public or other employees. (1) Improper or unauthorized use of agency property. (m) Refusal to subscribe to any oath or affirmation which is required by law in connection with agency employment. (n) Any willful act or conduct undertaken in bad faith, either during or outside of duty hours which is of such a nature that it causes discredit to the agency, the employee's department or division. (o) Inattention to duty or negligence in the care and handling of City property. (p) Violation of the rules and regulations in any department. (q) Mental or physical impairment which renders the employee unable to perform the essential functions of the job, with or without reasonable accommodation (if disabled), or without presenting a significant current risk of substantial harm/threat to the health and/or safety of self or others. (r) Outside employment not specifically authorized. (s) Acceptance from any source of a reward, gift, or other form of remuneration in addition to regular compensation to an employee for the performance of his or her official duties. (t) The refusal of any officer or employee of the City to testify under oath before any Grand Jury having jurisdiction over any then pending cause of inquiry in -40- Notice of Proposed Discipline: Whenever the appropriate authority intends to suspend an employee, reduce the employee in pay, demote the employee or dismiss the employee, the appropriate authority will give the employee a written notice of proposed discipline which sets forth the following: a. The disciplinary action intended; b. The specific charges upon which the action is based; C. A summary of the facts upon which the charges are based; d. Identification of the rule, regulation, or policy violated; -41- which the investigation of government bribery or misconduct in agency office is involved shall constitute of itself sufficient ground for the immediate discharge of such officer or employee. (u) Willful violation of any of the provisions of an ordinance, resolution, rule, regulation or policy prescribed by the department or City. (v) Improper political activity. Example: Campaigning for or espousing the election or non -election of any candidate in national, state, county or municipal elections while on duty and/or during working hours or in City uniform on or off duty; or the dissemination of political material of any kind while on duty and/or during working hours or in uniform. (w) Working overtime without authorization. (x) Possession of weapons on agency property unless authorized. (y) Making false or malicious statements concerning any employee, the City, or the City's policies or practices. Section 3. Procedures for Taking Disciplinary Action: a. Oral Warning: Following a formal discussion, a supervisor or manager may summarize the oral warning, provide the summary to the employee and place it in the employee's department personnel file. At a minimum, a notation that the oral warning was given must be kept by the supervisor or manager. b. Written Reprimand: A written reprimand will be prepared, discussed with and given to the employee. A copy will be placed in the employee's official personnel file. The employee may within fourteen (14) days of receipt of the written reprimand file a written response for placement in the personnel file. c. Suspension/Reduction in Pay/Demotion/Dismissal of Regular Employees: Notice of Proposed Discipline: Whenever the appropriate authority intends to suspend an employee, reduce the employee in pay, demote the employee or dismiss the employee, the appropriate authority will give the employee a written notice of proposed discipline which sets forth the following: a. The disciplinary action intended; b. The specific charges upon which the action is based; C. A summary of the facts upon which the charges are based; d. Identification of the rule, regulation, or policy violated; -41- e. A copy of all documents upon which the discipline is based, or notice that the employee may request and will be given such information; f. Notice of the employee's right to respond to the charges either orally or in writing to the appropriate authority; g. The date, time and person before whom the employee may respond; h. Notice that failure to respond at the time specified will constitute a waiver of the right to respond prior to final discipline being imposed; The employee's right to representation. 2. Response by Employee: The employee will have the right to respond to the appropriate authority orally or in writing within five working days. The employee will have a right to be represented at any meeting set by the appropriate authority to hear the employee's response. In the case of suspension, reduction in pay, demotion or dismissal the employee's response will be considered before final action is taken. 3. Final Notice: After the response or the expiration of the employee's time to respond to the Notice of Proposed Discipline, the appointing authority or designee will: (1) dismiss the proposed discipline and take no disciplinary action against the employee, (2) modify the recommended disciplinary action, (3) uphold the recommended disciplinary action, or (4) prepare and serve upon the employee a Final Notice of Disciplinary Action. The Final Notice of Disciplinary Action will include the following: a. The disciplinary action taken, b. The effective date of the disciplinary action; C. Specific charges upon which the action is based; d. A summary of the facts upon which the charges are based; e. The written documents upon which the disciplinary action is based; f. The employee's right to appeal. Section 4. Appeal Rights: A regular employee will have the right to appeal a suspension, reduction in pay, demotion, or dismissal. -42- Section 5. Method of Appeal: Appeals shall be in writing, signed by the employee (appellant), and filed with the City Manager within five (5) working days after receipt of the final notice. The appeal shall be a written statement, addressed to the City Manager admitting or denying each of the charges in the final notice and reasons why the final action should be reversed or modified. The formality of a legal pleading is not required. Section 6. Notice: Upon the filing of an appeal, the City Manager shall set a date for a hearing on the appeal. The City shall notify all interested parties of the date, time and place of the hearing at such place as the City Manager shall prescribe. Section 7. Subpoenas: Subpoenas for witnesses to appear or for documents shall be issued only upon receipt by the City Manager of a written request thereof or, setting forth the names and addresses of the witnesses desired to be subpoenaed. Section 8. Subpoenas - Issuance: Subpoenas for witnesses or documents shall be issued only at direction of the City Manager. Section 9. Hearings: The appellant shall appear personally, unless physically unable to do so, before the City Manager, at the time and place of the hearing and may be represented by any person(s) or attorneys) he/she may select and may, at the hearing, produce on his/her behalf, relevant oral and/or documentary evidence. At the commencement of any such Hearing, or at any time prior to the commencement thereof, the City Manager may specify the order of procedure for any such hearing. Except as otherwise directed, the order of procedure for any such hearing shall be as follows: (a) The Department Director or officer having appointing power shall be designated the respondent for the purpose of the hearing. The respondent shall present testimony or evidence in support of the statement of charges against the employee. Such evidence may be presented in the form of oral testimony, documents or demonstrative evidence. The employee shall have the right of cross examination of witnesses. (b) The employee by or for whom such hearing was requested shall be designated the appellant for the purpose of a hearing. Upon completion of the respondent's initial presentations the appellant shall be accorded an opportunity to present testimony in answer to the statement of charges against him/her. Respondent shall have the right to cross-examine witnesses. (c) The respondent and appellant may then offer rebuttal evidence only, unless the City Manager permits additional evidence to be presented. (d) At the conclusion of the hearing, the City Manager may permit arguments to be made. -43- (e) The conduct and decorum of the hearing shall be under the control of the City Manager, with due regard to the rights and privileges of the parties appearing. Hearings need not be conducted according to technical rules relating to evidence and witnesses but hearings shall be conducted in a manner most conducive to determination of the truth. (f) Oral evidence shall be taken only upon oath or affirmation of the witness. (g) Any relevant evidence may be admitted if it is the type of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules that might make improper the admission of such evidence over objection in civil actions. (h) Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence that shall not be sufficient in itself to support a finding unless it would admissible over objection in civil actions. (i) The rules dealing with privileges shall be effective to the same extent that they are now or hereafter may be recognized in civil actions. Q) Irrelevant and unduly repetitious evidence may be excluded. (k) During examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing upon motion of either party. (1) Burden of Proof: In a disciplinary appeal the employer has the burden of proof by preponderance of the evidence. (m) So far as possible, hearings and continuances shall be scheduled and granted to accommodate as many persons directly interested as possible, but nevertheless shall be within the absolute discretion of the City Manager or City Council. Section 10. Findings and Recommendations: The City Manager shall, within twenty (20) days after the conclusion of the hearing, certify his/her findings and decision in writing to the appellant and to the respondent. The decision shall be final. -44- RULE XIX PERFORMANCE EVALUATIONS AND ANNUAL WORK PLANS Section 1. General: Performance evaluation is the process of evaluating and recording the performance of each employee. The performance evaluation is best used: To maintain a high level of efficiency or assist in raising efficiency by commending the employee. 2. To indicate to the employee those points in which he/she shows weak performance, and suggest the proper means of raising his/her working performance to the standard level. 3. To inform the employee of good performance. 4. To encourage better working relationships and mutual understanding by letting the employee know where he/she stands with relation to his/her supervisor's evaluation of his/her work. 5. To establish an annual work plan consisting of goals and tasks to be accomplished. Section 2. Responsibility for Evaluation: The Department Director or Division Manager, together with other supervisors familiar with the employee's work, is responsible for proper preparation of the performance evaluation for each employee in that department. The supervisor should carefully review the complete class description, and the goals and objectives for the employee, if any, before beginning each evaluation, to remind himself/herself of what should be expected from the employee, consider each item on the evaluation sheet separately in the light of the column definition, and select the column which best describes the work of the employee in each category. Section 3. Discussion with Employee: The performance evaluation must be discussed with the employee. During the interview, as well as on the form, special attention should be given to discussing specific ways in which the employee can improve his/her performance. An opportunity should also be afforded the employee to comment and bring up any questions he or she may have. Section 4. Schedule: Performance evaluations for probationary employees are to be prepared at the end of the first five (5) months, and after the first eleven (11) months, immediately prior to the completion of the one year probationary period, After the probationary evaluation, an evaluation should be done on an annual basis on the employee's anniversary date. Performance evaluation for employees who are already at the top of their salary range shall be prepared during the month of June. This will provide a continuing opportunity for the employee and supervisor to review their annual work plan. -45- Section 5. Appeal Procedure: It is the intent of the City to offer fair and equitable appeals procedures for employees' performance evaluations. Below are the official guidelines. a. Employee and supervisor meet to review and discuss the employee's performance evaluation. b. The employee may respond in writing to the contents of the evaluation. The employee must submit this response to the Department Director or Division Manager within ten (10) working days immediately following receipt of the evaluation. C. The employee may appeal the performance evaluation to the City Manager. The City Manager shall review the appeal with the employee and the Department Director or Division Manager. The decision shall be rendered in writing within fifteen (15) working days by the City Manager, and the decision of the City Manager shall be final. -46- RULE XX VEHICLE USE Section 1. Use of Private Vehicles: Private automobiles are not to be used for the City business except as authorized. The City Manager may authorize such use at the reimbursement rate equal to that set forth by the Internal Revenue Service. Payments shall be based upon the most direct route to and from the destination and garage and parking expenses shall be paid in addition to the current rate, upon submission of paid receipts. Section 2. Auto Allowance: Executive Management Employees will receive a monthly car allowance. This stipend will be in lieu of any mileage reimbursement. If additional garage and parking expenses are incurred, they are reimbursable. Employees receiving a monthly auto allowance are eligible for mileage reimbursement in cases of exceptional travel. Exceptional travel is mileage which is in excess of sixty (60) miles beyond the employees' normal commute. (Reference: Administrative Policy, City Council/Employee Automobile and Administrative Expense Reimbursement Policy) -47- RULE XXI PROFESSIONAL DEVELOPMENT Section 1. Training: The City Manager and employees of the City are eligible to request specialized training in the form of symposiums, special courses, forums, etc., at the City's expense. Section 2. Tuition Reimbursement: Subject to Council fiscal year budget authorization, each full-time and regular part-time (on a pro -rated basis) employee shall be entitled to reimbursement in the amount of $1500 per fiscal year for college -level or university - level educational courses (including tuition and related books), which have been approved by the City Manager or his/her designee as being job-related and of value to the City. Reimbursement under this Section is contingent upon the verification of the attainment of a letter grade of "C" or better, or in those cases where no letter grade is given, verification of completion of the course with a "Pass" or "Credit" grade and submittal of a receipt for registration bearing the name of the course, for which reimbursement is being requested. In the case of reimbursement for books for any approved/verified course; a syllabus, course reading list or course outline showing the book as being required for the course, plus a receipt bearing the title of the book shall be submitted. -48- RULE XXII EMPLOYEE STANDARDS OF CONDUCT Section 1. Code of Ethics: a. Each officer, official, and employee has an obligation to the citizens, to the people's elected representatives, and to fellow employees to meet the highest ethical and professional standards and to enhance the public's respect and trust for the City government and its operations. b. Employees of the City have responsibilities unique from their counterparts in the private industry. Employment with the City carries an obligation of personal integrity and conduct that serves to establish public respect, confidence, and trust. C. Employees represent the City of Diamond Bar and the quality of City service is judged through their performance and conduct. The citizens of Diamond Bar have the right to expect that City employees will provide services in an efficient, thorough, and courteous manner. d. The City, as a condition of employment, expects to receive from the employee: 1. Initiative and a conscientious effort to perform productive work. 2. Cooperative, positive, responsive, and courteous relations with fellow employees, supervisors, subordinates, and the public. 3. A continuous effort to strive for greater knowledge and skill on the job in order to maintain performance at a high level. 4. Compliance with all policies, regulations, rules of conduct, and ordinances established by the City. 5. Public loyalty to and support of the official policies of the City. 6. Responsible work habits demonstrated by: a. Dependability, promptness, reliable attendance, and performing required duties competently, b. Keeping informed of developments and matters affecting job performance, C. Being flexible and adaptable to change, d. Accepting constructive suggestions and criticism. -49- 7. Neat and clean grooming and attire appropriate to the job assignment. Prescribed uniforms and safety equipment must be worn where applicable. e. No employee will accept a fee, compensation, gift, payment of expenses or any other thing of monetary value in any circumstances in which acceptance may result in or create the appearance of any one or more of the following: (Reference Administrative Policy P-10, Gift Policy) Use of public office and/or employment for personal or private gain. 2. Preferential treatment of any person. 3. Loss of complete independence or impartiality. 4. Making a City decision outside of official channels. 5. Reduction of public confidence in the integrity of City government and/or its employees. 6. Impeding government efficiency or economy. Section 2. Harassment Policy: (Reference Administrative Policy P-4, Harassment Policy) Purpose: The City of Diamond Bar is committed to providing a work environment free of discriminatory harassment. The purpose of this policy is to define discriminatory harassment including sexual harassment, to prohibit the condoning or perpetuating of such conduct and to provide an efficient means for reporting and resolving complaints of harassment by or against any employee or applicant or from a person providing services pursuant to a contract. This policy also applies to elected and appointed officials. 2. General Policy: The City's policy strictly prohibits discriminatory harassment on the basis of race, religion, sex or gender, sexual orientation, national origin, ancestry, physical or mental disability, medical condition, pregnancy, veteran status, marital status or age over 40 years. The City considers discriminatory harassment a serious offense and is firmly committed to the philosophy that every employee has the right to work in an environment free from discriminatory intimidation, ridicule and insult and to be treated with courtesy, dignity and respect. Every employee is expected to adhere to a standard of conduct that is respectful to all persons within the work environment. This Policy applies to all terms and conditions of employment, including but not limited to hiring, placement, promotion, disciplinary action, layoff, recall, transfer, leave of absence, training opportunities and compensation. -50- Employees who violate this Policy may be subject to disciplinary action up to and including termination. The sexual harasser may be found personally liable to the victim of the harassment. Sexual harassment is outside the course and scope of employment, meaning that an employee accused of sexual harassment is not entitled to a defense or indemnity from the City in any action brought by the victim. 3. Prohibited Conduct: The City's policy prohibits the following types of conduct: 3.1 Harassment: Harassment is any type of verbal or physical conduct based on an employee's membership in a protected category, such as race, religion, creed, color, national origin, ancestry, physical or mental disability, medical condition, pregnancy, childbirth, veteran status, sexual orientation, marital status, sex, sexual orientation or age over 40 years, that is sufficiently severe or pervasive so as to affect an employee's work performance negatively and/or alter the conditions of employment and create an intimidating, hostile or otherwise offensive working environment. It need not be explicit, or even specifically directed at the victim. Sexually harassing conduct can occur between people of the same or different genders. 3.2 Sexual Harassment: Sexual harassment is defined as follows: any action that constitutes an unwelcome sexual advance or request for sexual favors, or any verbal, visual or physical conduct of a sexual nature that is (i) related to or a condition to the receipt of employee benefits, including, but not limited to, hiring and advancement, (ii) related to or forms the basis for employment decisions affecting the employee, (iii) sufficiently severe or pervasive so as to affect an employee's work performance negatively and/or alter the conditions of employment and create an intimidating, hostile or otherwise offensive working environment. Romantic or sexual relationships between supervisors and subordinate employees are discouraged. There is an inherent imbalance of power and potential for exploitation in such relationships. The relationship may create an appearance of impropriety and lead to charges of favoritism by other employees. A welcome sexual relationship may change, with the result that sexual conduct that was once welcome becomes unwelcome and harassing. Examples of the type of conduct that can constitute unlawful harassment or sexual harassment include, but are not limited to, the following: Verbal: Inappropriate or offensive remarks, slurs, jokes or innuendoes based on actual or perceived sex, religious creed, national origin, -51- ancestry, disability, medical condition, marital status, age or sexual orientation. This may include, but is not limited to, inappropriate comments regarding an individual's body, physical appearance, attire, sexual prowess, marital status, pregnancy or sexual orientation; unwelcome flirting or propositions; demands for sexual favors; verbal abuse, threats or intimidation of a sexual nature; or sexist, patronizing or ridiculing statements that convey derogatory attitudes about a particular gender. Physical: Inappropriate or offensive touching, assault, or physical interference with free movement when directed at an individual on the basis of actual or perceived sex, religious creed, national origin, ancestry, disability, medical condition, marital status, age or sexual orientation. This may include, but is not limited to, kissing, patting, lingering or intimate touches, grabbing, massaging, pinching, leering, staring, unnecessarily brushing against or blocking another person, whistling or sexual gestures. Visual or Written: The display or circulation of offensive or derogatory visual or written material related to sex, religious creed, national origin, ancestry, disability, medical condition, marital status, age or sexual orientation. This may include, but is not limited to, posters, cartoons, drawings, graffiti, reading materials, computer graphics or electronic media transmissions. Environmental: A work environment that is permeated with sexually - oriented talk, innuendo, insults or abuse not relevant to the subject matter of the job. A hostile environment can arise from an unwarranted focus on sexual topics or sexually suggestive statements. An environment may be hostile if unwelcome sexual behavior is directed specifically at an individual or if the individual merely witnesses unlawful harassment in his or her immediate surroundings. The determination of whether an environment is hostile is based on the totality of the circumstances, including such factors as the frequency of the conduct, the severity of the conduct, whether the conduct is humiliating or physically threatening, and whether the conduct unreasonably interferes with an individual's work. 4. Provisions: 4.1 Prohibited Supervisory or Managerial Behavior: No supervisor, manager, or other authority figure shall condition any employment, employee benefit, or continued employment with the City of Diamond Bar on an applicant's or employee's acquiescence to any of the behavior defined above. No supervisor, manager, or other authority figure shall retaliate against any applicant, or employee, because that person has opposed -52- a practice prohibited by this policy or has filed a complaint, testified, assisted, or participated in any manner in an investigation, proceeding, or hearing conducted by an authorized investigator. 4.2 Behavior Prohibited by all Persons: No person in City Hall or any other City workplace shall create a hostile or offensive work environment for any other person by engaging in any discriminatory harassment or by tolerating it on the part of any employee. No person in City Hall or any other City workplace shall assist any individual in doing any act that constitutes discriminatory harassment against any employee of the City of Diamond Bar. No person in City Hall or any other City workplace may retaliate against any employee because that person has opposed a practice prohibited by this policy or has filed a complaint, testified, assisted or participated in any manner in an investigation proceeding or hearing conducted by an authorized investigator. No person shall destroy evidence relevant to an investigation of harassment discrimination. 4.3 Obligations of Supervisors/Managers: Any supervisory staff receiving a complaint of harassment, whether formal or informal or whether oral or written, or observing or otherwise being made aware of an incident of harassment, must inform the Human Resources Manager, Assistant City Manager for Administrative Services, or the City Manager of such complaint or incident. A copy of this policy shall be provided to all employees of the City of Diamond Bar. A copy of the information sheet on sexual harassment prepared by the Department of Fair Employment and Housing is available to all City of Diamond Bar employees upon request. The City of Diamond Bar shall periodically notify employees of the procedures for registering a complaint as well as available redress. Such notification shall occur through the normal channels of communication. The Human Resources office shall make available upon request information from the Department of Fair Employment and Housing and the Equal Employment Opportunity Commission about filing claims of sexual harassment with these entities. -53- 4.4 Obligations of All Employees: On an annual basis all employees will be required to review the harassment policy and sign a form which acknowledges that they have read and understand the City of Diamond Bar's harassment policy and complaint procedure. All employees should report any conduct, which fits the definition of discriminatory harassment, to their immediate supervisor or appropriate authority figure. This includes conduct of non -employees, such as sales representatives or service vendors or harassing conduct toward such contractors. All persons should report to their supervisor, manager or the Human Resources Manager any instances of discriminatory harassment that they have directly observed, whether or not reported by the employee who is the object of the harassment. All employees shall cooperate with any investigation of any alleged act of discriminatory harassment conducted by the City of Diamond Bar or its agents. 4.5 Investigative Action: The City Manager's designee shall authorize the investigation or conduct the investigation of any incident of alleged discriminatory harassment reported to them. The investigation shall be conducted in a way that ensures, to the extent feasible, the privacy of the parties involved. The person designated to investigate shall immediately report in writing the findings of fact to the City Manager's Designee. The designee will determine whether the Policy has been violated and communicate the conclusion to the complainant. Disciplinary action shall be decided in accordance with the City of Diamond Bar policy and after consultation with the City Manager's designee. Under no circumstances shall an employee of the City of Diamond Bar who believes that he or she has been the victim of discriminatory harassment be required to first report that harassment to a supervisor or other authority figure if that person or authority figure is the individual who has done the harassing. Under no circumstances shall a supervisor, manager, or other authority figure retaliate in any way against an employee who has made a complaint or who has provided information as a witness to an incident of alleged harassment. SII! All supervisors and managers are required to maintain confidentiality to the extent possible in communicating or investigating any claims of alleged harassment. 5. Complaint Form: The more time that passes after an incident of harassment, the more difficult it is to investigate. It is recommended that complaints be made as soon as possible. The initial report may be oral or written, but a written and signed statement will assist in the investigation process. Your notification to the City is essential. The City cannot respond to a harassment problem if the problem is not brought to our attention. You may be assured that you will not be penalized in any way for reporting discriminatory harassment or other harassment problems. Complaint forms are available in Human Resources or a written statement can be submitted but must include the following information: a. The employee's name, department and position title. b. The name of the person or persons committing the harassment, including their title(s) if known. C. The specific nature of the harassment, how long it has gone on, and any employment action (demotion, failure to promote, dismissal, refusal to hire, transfer, etc.) taken against the victim as a result of the harassment (if applicable), or any other threats made against the victim as a result of the harassment. d. Witnesses to the harassment. e. Whether the victim previously has reported such harassment and, if so, when and to whom. -55- CITY OF DIAMOND BAR Harassment Complaint Form All complaints will be investigated in accordance with procedures detailed in the Harassment Policy. The City respects the employees/individuals right of confidentiality however, disclosures may be done on a need to know basis. NAME: TITLE: DEPARTMENT: TODAY'S DATE: DATE OF OCCURRENCE(S)- Please identify the individual who is doing the harassing/discriminating. Include name(s) and job title(s): Please detail the behavior which you are reporting - including all individuals involved, location, time, and any witnesses. If there are multiple occurrences, detail each. Describe the incident, the participants, the background to the incident and any attempts you have made to solve the problem. Be specific, i.e. detail actions, not attitudes or opinions — "he/she put their right hand on my left shoulder; not "he/she makes me feel uncomfortable": Please identify others who are aware of this behavior and how they are aware: -56- City of Diamond Bar Harassment Complaint Form Page 2 Please identify and provide any written documents relevant to this complaint, i.e. diaries, journals, letters, emails, etc.: Are you aware of others who have similar complaints? Is there a suggestion for resolution for this matter and/or a desired outcome? Was this harassment previously reported? yes no If checked "yes" above, state when and to whom: Thank you for providing as detailed information as you are able. Please attach copies of relevant documentation. You may use additional paper if necessary. You will be informed in writing of the results of the investigation. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Signature of Complainant Date Section 3. Information Systems Usage: (Reference Administrative Policy A-2, Information Systems Usage Policy) -57- Purpose: To establish guidelines for the use of information systems; including, but not limited to electronic mail (hereinafter "e-mail") and internet (hereinafter "internet") usage on the computer network and the telephones and voicemail (hereinafter "voicemail") system within the telephonic network of the City of Diamond Bar (hereinafter "City"). 2. Application: This policy shall apply to all City employees, consultants, elected and appointed officials or other non -employees utilizing electronic communications with the City (hereinafter "users"). 3. Definitions: Information Systems — includes, but is not limited to, computers, electronic mail, internet, hardware, software, network infrastructure, telephones, cellular phones, two-way radios, and any and all other equipment associated with digital information. Internet or World Wide Web (www) - for the purposes of this policy, is defined as universal information retrieval system(s) which exist independent of any City information systems. E-mail - for the purposes of this policy shall refer to any electronic message automatically passed from one computer user to another. 4. Policy: All information systems, including the internet, e-mail, and telephone voicemail are business communication tools made available to City employees and consultants in order to enhance efficiency and effectiveness in the performance of their duties and are to be used in accordance with generally accepted business practices and current laws. Messages transmitted over either the internet, the e-mail system, sites visited, or voicemail messages are intended to be those which involve City business activities or contain information essential to users for the accomplishment of business-related tasks, and/or communication directly related to City business, administration, or practices. 5. Provisions: 5.1. General Use: 5.1.1. The City of Diamond Bar's internet and e-mail facilities shall not be used to violate the laws and regulations of the United States or any other nation, any state, city, or other local jurisdiction. 5.1.2. All internet and e-mail messages that are transmitted over or reside in the City's computer network are the property of the City and are subject to public requests for information. -58- 5.1.3. All messages, calculations, e-mail, or data of any kind, filed on City hard drives or any other electronic storage media is a public record to the same extent hard copy documents are considered public record (in accordance with the California Public Records Act) and users have no expectation of privacy. 5.1.4. The internet and e-mail systems are not confidential systems since all transmissions on the systems are the property of the City. Therefore, the internet and e-mail systems are not appropriate for confidential communications. If a communication is considered to be private, an alternative method to communicate should be used. 5.1.5. The City reserves the right to monitor and record user internet and e- mail usage at any time. No user shall have any expectations of privacy as to his/her internet and e-mail usage. The City has software and systems in place that can and will monitor and record all usage for each and every user; including, but not limited to, all internal transmissions, World -Wide Web site visits, chats, newsgroups, and file transfers into and out of the City's internal network. City representatives may access, audit, and review all activity and analyze usage patterns, and may, for whatever reason, disclose this data to assure the City's telecommunications resources are devoted to maintaining the highest level of productivity. 5.1.6. Derogatory, defamatory, obscene, disrespectful, sexually suggestive, or in any other way inappropriate messages on the internet and/or e- mail system are prohibited and are a violation of this policy. Harassment in any form, sexual or ethnic slurs, and obscenities, or any representation of obscenities are prohibited and are a violation of this policy. Sending a copy of these types of offensive transmissions is prohibited and is a violation of this policy. 5.1.7. It is a violation of this policy to transmit a message under another user's name, reading others' e-mail messages, or accessing others' files. Any user who obtains a password or user identification must keep that password confidential; users shall not share user identification or passwords. It is the user's responsibility to maintain password security. If a user suspects someone else may know their password, it is the user's responsibility to change their password immediately. Users will log off of the City network at the end of each workday. 5.1.8. Users shall not operate a business through the City's Information Systems, e-mail, internet, or any bulletin boards. 5.1.9. Files which are to be shared by multiple users should be stored on the division file subdirectory on the designated share location. -59- 5.1.10. All purchases of computer hardware or peripherals must be approved by the Manager of the Information Systems Division. 5.2 Internet Use: 5.2.1 Users shall not use City internet facilities to: 5.2.1.1 Download or distribute pirated software or data. 5.2.1.2 Deliberately propagate any virus or any other destructive programming. 5.2.1.3 Disable or overload any computer system or network, or attempt to download alternate browsing software from any ISP such as AOL, CompuServe, and the like to circumvent any system intended to protect the privacy or security of another user. 5.2.1.4 Download entertainment software or games, or play games against opponents over the internet. 5.2.1.5 Download images or videos unless there is an explicit business-related use for the material. 5.2.1.6 Upload any software licensed to the City or data owned or licensed by the City, without explicit authorization from the City Manager or his/her designee. 5.2.1.7 Commit infractions such as, but not limited to: misuse of City computer hardware, software or resources; sexual harassment; unauthorized public comments; or misappropriation or theft of intellectual property. 5.2.1.8 Release confidential City information. 5.2.2 All software downloaded via the Internet into the City network shall only be done with the approval of the Information Systems Division and shall become the property of the City. Any such files or software shall be used only in ways that are consistent with their copyrights or licenses. 5.2.3 The City retains the copyright to any material created or posted to any forum, newsgroup, chat or World -Wide Web page, by any user in the course of his/her duties. 5.2.4 Use of the internet connection during business hours shall be used exclusively for business purposes. Users may use their internet connection for non -business research or browsing during meal times, other breaks, or outside of work hours, providing all other usage policies are observed. 5.2.5 The City uses a variety of software and data to identify inappropriate or sexually explicit internet sites and will block access from within the City's network to all such sites that are known. If a user finds himself/herself connected accidentally to a site that contains sexually explicit or offensive material, he/she shall disconnect from that site immediately, regardless of whether that site has been previously deemed acceptable by any screening or rating program, and immediately report the incident to the Manager of the Information Systems Division. 5.2.6 The display of any kind of sexually explicit image or document on any City system is a violation of the City's Harassment Policy. In addition, sexually explicit material shall not be archived, stored, distributed, edited or recorded using the City's network computing resources. 5.2.7 Users shall not attempt to disable or circumvent any City security system. 5.2.8 Users should take reasonable care to prevent introduction or spread of computer viruses into or through the City's communication and information systems and equipment. The willful introduction of computer viruses, worms, Trojan horses, trap-door code and other disruptive and/or destructive programs into the City's computer systems or network is prohibited. 5.2.9 Users must not attempt to repair or resolve hardware or software failures, bugs, anomalies and/or problems themselves. These problems should be reported to the Manager of the Information Systems Division. 5.3 E-mail Use: 5.3.1 Users of e-mail are responsible for the management of their mailboxes. E- mail is not a permanent storage medium and users are expressly forbidden to use it as such. E-mail in -boxes, out -boxes, sent items, and deleted files shall be emptied on a regular basis. E-mails intended to be retained must be copied and placed in an appropriate file. 5.3.2 Users are responsible for checking their mailbox on a regular basis during the workday for messages. Messages received shall be responded to promptly. 5.3.3 Incidental and occasional personal use of the e-mail system is permitted. Such personal communications should be limited to "reasonable" personal communications. "Reasonable" personal communications shall be subject to the interpretation of City management. -61- 5.3.4 Remote access to e-mail shall only be permitted to Full-time Exempt staff. Full-time Exempt staff are exempt from the overtime requirements of the Fair Labor Standards Act; and therefore may access the e-mail system beyond the standard work day. Non-exempt staff, or those subject to overtime shall not access the e-mail system outside of the standard work day. 5.3.5 Since the e-mail system is not designed for the long-term retention of messages nor should be considered an electronic recordkeeping system for all categories of records. E-mail that becomes part of an official record should be printed for filing with other program or project files. The originator of an e-mail message becomes the record copy holder. It is the responsibility of the user to determine if an e-mail message is an official record and is covered within the scope of the City's records retention schedule. 5.3.6 E-mail messages addressed to "City Staff' or other broad distribution shall only be used for items that are of particular interest to all users and must be related to City business. Personal advertisements are not acceptable and shall not be sent. 5.3.7 All e-mail messages, sent to and received by any and all users can be read by systems administrators and management staff and users have no expectation of privacy. The use of passwords does not constitute a message as being private or confidential or that the City will not retrieve it. The deletion of messages is no assurance that the City will not retrieve and read the messages at a future time. 5.3.8 E-mail shall not be used by either supervisors or employees to transmit any form of written reprimand or disciplinary action. 5.3.9 E-mail Etiquette: 5.3.9.1 Remember as a user you are representing the City through your communications both internally and externally, and it is critical that you maintain a positive image for both yourself and the City. 5.3.9.2 Users must be certain that messages are addressed to the proper person. Check the list of persons being E-mailed when choosing a REPLY ALL function. 5.3.9.3 Capitalize words only to emphasize an important point or to distinguish a title or heading. Capitalizing whole words that are not titles is generally interpreted as shouting. 5.3.9.4 Users should be professional and careful of what they say about others. E-mail is easily forwarded and blind copied. -62- 5.3.9.5 Be cautious when using sarcasm and humor. Without face to face communication, humor may be viewed as criticism. By the same token, also carefully read what others write. The perceived tone may easily be misinterpreted. 5.3.9.6 Some E-mail messages, especially those written in "the heat of the moment," are best unsent. Users should think twice before sending angry or sarcastic messages or using E-mail to "let off steam." 5.4 Telephone and Voicemail Use 5.4.1 It is the primary responsibility of all users to answer the telephones. 5.4.2 Telephones and voicemail are intended for business-related purposes. 5.4.3 All telephonic equipment is the property of the City. The City has the right to retrieve and make proper and lawful use of any and all communications transmitted through the voicemail system. 5.4.4 Voicemail shall never be used as a substitute to answering a City telephone during work hours. 5.4.5 Personal non -toll calls may be made during breaks or after work hours. 5.4.6 Telephone and Voicemail Etiquette 5.4.6.1 All telephones must be answered before the third ring. 5.4.6.2 Greeting a caller shall contain the "City of Diamond Bar" or "Department or Division name" and "User name". 5.4.6.3 Users are to be courteous, respectful, and attentive while on the telephone. 5.4.6.4 Users shall take notes or use the record feature during the call to avoid requesting the same information a second time. 5.4.6.5 Irate callers shall be treated with special care. Users should attempt to identify their chief complaint quickly. 5.4.6.6 Calls should be aborted only if the caller refuses a request to refrain from using abusive or profane language. 5.4.6.7 When transferring a call, the user shall explain to the caller why the call is being transferred. 5.4.6.8 Voicemail greetings shall contain the staff member's name the department or program name and an indication that by pressing "zero" -63 - 5.5 the caller will be transferred to another staff member able to provide immediate assistance. 5.4.6.9 Voicemail messages shall be programmed so that when a caller presses "zero" the call is transferred to the department designated staff member. The designated staff member shall program their voicemail so that a call is transferred to the main City receptionist when the caller presses "zero". 5.4.6.10 If an extended absence is expected, including a scheduled 9180 day, an alternate secondary message shall be prepared. The length of the absence and the anticipated return to the office as well as the information included in the standard primary greeting shall be recorded in the alternate secondary outgoing message. Prohibited Use of Voicemail 5.5.1 Voicemail messages that disrupt or threaten to disrupt the efficient operation of City business or administration are prohibited. This includes, but is not limited to: 5.5.1.1 Messages that publicize a personal dispute other than recording an approved grievance or complaint procedure. 5.5.1.2 Messages that constitute or counsel insubordination. 5.5.1.3 Messages that may threaten to harm close working relationships. 5.5.1.4 Messages that contain abusive or profane language. 5.5.1.5 Messages that may take employees away from their assigned tasks. 5.5.1.6 Messages that include confidential City materials or information. 5.5.1.7 Messages that are sent anonymously or under a fictitious name. 5.5.2.1 Voicemail messages that violate law, violate individual rights, create potential liability for the City or that violate public policy of the State of California are prohibited. These messages include, but are not limited to: 5.5.2.1 Messages which are pornographic or obscene 5.5.2.2 Messages in conflict with the City's Harassment Policy or any other policy prohibiting discrimination, including harassment, on the basis of race, color, religion, sex, national origin, ancestry, age, physical disability, mental disability, medical condition, veteran status, marital status, sexual orientation, or any other status protected by local, state, or federal law. 5.5.2.3 Messages that involve the use of racial, religious, or ethnic slurs. 5.5.2.4 Messages intended to harass or annoy. Section 6. Workplace Substance Abuse Prevention Policy: (Reference Administrative Policy P- 9, Workplace Substance Abuse Prevention Policy) a. Purpose: The purpose of this policy is to provide guidelines for all employees to effectively deal with substance abuse and its effects in the workplace. Employees are expected to be in suitable mental and physical condition, perform their jobs satisfactorily, and behave appropriately. Should the use of alcohol or drugs interfere with these expectations, employees may be offered rehabilitative assistance. Failure to meet these expectations could result in disciplinary action. b. policy: It is the City's policy that employees shall not be under the influence of or in unlawful possession of alcohol or illegal drugs while on City property, at work locations, or while on duty; shall not utilize such substances when they are assigned to be on call for duty; shall not possess, provide or sell illegal drugs to any other employee or to any person while on duty; nor have their ability to work impaired as a result of the use of alcohol or illegal drugs. While use of medically prescribed medications and drugs is not per se a violation of this policy, the employee must notify his/her supervisor, before beginning work, when taking medication or drugs (including the possible effects of taking such medication or drugs) which the employee believes may interfere with the safe and effective performance of duties or operation of equipment. In the event there are questions regarding an employee's ability to safely and effectively perform assigned duties while using such medication or drugs, clearance from their physician may be required. City employees are prohibited form drinking alcoholic beverages during working hours (including lunch hours and breaks), while on City premises at any time, while driving a City vehicle during regular working hours, while on official City business. The consumption of alcohol by City employees may be allowed only at designated City facilities, during certain special City functions and with prior authorization by the City Manager. All City premises and City vehicles shall be subject to a random drug search(es) without notice at any time. -65- Employees with drug or alcohol problems are encouraged to seek assistance. Seeking assistance for such a problem before a positive drug and alcohol test will not jeopardize an employee's job. C. Employee Responsibilities An employee must: 1. Not report to work while "under the influence of drugs or alcohol"; NOTE: "Under the influence of drugs or alcohol" means: the use of any alcoholic beverage or any illegal drug or substance, or the misuse of any prescribed drug, in a manner and to a degree that impairs the employee's work performance or ability to use City property or equipment safely. 2. Notify his/her supervisor, before beginning work, when taking any medications or drugs, prescription or nonprescription, which may interfere with the safe and effective performance of duties or operation of City equipment. 3. Not possess or use alcohol or impairing drugs (illegal drugs and prescription drugs without a prescription) during working hours, rest periods, or at anytime while on City property; 4. Not directly or through a third party sell or provide drugs or alcohol to any person, including any employee, while either employee or both employees are on duty; 5. Immediately complete and sign a consent form (see drug testing prerequisite) and submit to an alcohol and drug test when requested to do so by the employee's supervisor or manager. 6. Provide within 24 hours of request bona fide verification of a current valid prescription for any potentially impairing drug or medication identified when a drug screen/test is positive. The prescription must be in the employee's name. 7. Report any conviction under a criminal drug statute to the City Manager within five (5) days of such conviction. d. Procedure: When an employee's supervisor and a second employee or supervisor observe an employee's actions that lead them to reasonable suspicion to believe that an employee may be under the influence of alcohol and/or narcotics, that employee may be directed to a City designated medical evaluation. This medical evaluation I will be conducted in order to determine if in fact that employee has evidence of alcohol and/or drugs in his/her system. Reasonable suspicion may be justified by one or a combination of any of the following indicators: Bloodshot or watery eyes Slurred speech Alcohol on breath Physical and/or verbal altercation Inability to walk a straight line An accident involving City property Possession of drugs or alcohol Frequent absenteeism Confusion/difficulty in concentration Noticeable change in behavior If reasonable suspicion pertaining to the use of drugs and/or alcohol by an employee is determined during normal working hours, the following steps shall be followed to facilitate the medical evaluation process: Step 1: The supervisor shall contact the Human Resources Office at the earliest available opportunity to discuss the event(s) which led to a belief that an employee acted intoxicated or under the influence of drugs. At that time, it will be determined whether or not sufficient facts exist to indicate that drug or alcohol testing may be appropriated. If the evidee for an immediate appointment with a medical facility to conduct the test. The supervisor shall inform his/her department head of this situation. Refusal by an employee to submit immediately to an alcohol and/or drug analysis when directed to do so may constitute insubordination and may be grounds for discipline up to and including termination. The actual type of testing including possible urine or blood screens, will be determined by the physician. Step 2: The supervisor, or his/her designee, shall personally drive the employee to the medical facility and wait for the test to be completed. Step 3: The employee will then be transported home or, in appropriate situations, to a hospital as deemed necessary by the doctor. The employee will continue receiving pay during this time and disciplinary action will not be administered unless the test results are positive and confirmed. Information obtained through this testing will be treated with strict confidentiality. Step 4: If the employee is found to have alcohol or drugs in his/her system, the supervisor shall meet with the employee to give the employee an -67- opportunity to explain. The supervisor shall encourage the employee to seek professional assistance in dealing with any drug or alcohol problem. The employee's medical group may provide the needed drug/alcohol counseling. Also, the City can provide a referral for an employee who is seeking professional assistance in the matter. Should an incident arise after normal work hours (i.e., overtime, official City business, etc.), the above procedures should be followed with the exception of contacting the Human Resources Office. The substance Abuse Prevention Policy of the City of Diamond Bar is not intended to be, and shall not be used as a tool for harassing any employee or group of employees. When employees are required to submit to testing for suspected substance abuse, it shall be only for good, proper, and reasonable cause. Documentation: Records pertaining to job performance, attendance, and behavior shall be maintained in the employee's personnel file. Records related to a drug or alcohol test or any medical diagnosis will be kept in a separate file. e. Disciplinary Action: The City views the use, possession, transfer, or sale of alcohol or drugs in violation of this policy a very serious violation and may subject the employee to disciplinary action up to termination in accordance with Diamond Bar's Personnel Rules and Regulations. If an employee drug tests show a positive result of alcohol and/or drugs two (2) times in a twelve (12) month period, termination will result. Follow Up: Should the results of an employee drug test be positive, the following steps shall occu r: The department director will have a discussion with Human Resources to determine the type of disciplinary action, if any, which would be most suitable or to evaluate an alternative to discipline. Should the results of the drug testing be negative: The employee is free to return to the workplace and assume his/her regular job duties. 2. No further action will be taken. -68- Section 7. Policy Against Retaliation a. 22ky: It is the policy of the City to prohibit the taking of any adverse employment action against those who in good faith report, oppose, or participate (as witnesses or accused) in investigations into complaints of alleged violations of City policy or state or Federal law in retaliation for that reporting, opposition, or participation. Disciplinary action, up to and including termination, will be taken against an employee or officer who is found to have violated this policy. Any elected official or contractor who violates this Policy Against Retaliation will be subject to appropriate sanctions. b. Policy Coverage: This Policy Against Retaliation prohibits City officials, officers, employees, or contractors from retaliating against applicants, officers, officials, employees, or contractors because of any of the protected activity as defined herein. C. Definitions: 1) "Protected activity" includes any of the following: • Filing a complaint with a federal or state enforcement or administrative agency. • Participating in or cooperating with a federal or state enforcement agency that is conducting an investigation of the City regarding alleged unlawful activity. • Testifying as a party, witness, or accused regarding alleged unlawful activity. • Associating with another employee who is engaged in any of the protected activities enumerated here. • Making or filing an internal complaint with the City regarding alleged unlawful activity. • Providing informal notice to the City regarding alleged unlawful activity. 2) "Adverse action" includes any of the following: • Real or implied threats of intimidation to attempt or prevent an individual from reporting alleged wrongdoing or because of protected activity. • Refusing to hire an individual because of protected activity. • Denying promotion to an individual because of protected activity. • Taking any form of disciplinary action because of protected activity. • Issuing a poor evaluation because of protected activity. • Extending a probationary period because of protected activity. • Altering work schedules or work assignments because of protected activity. d. Complaint Procedure: An applicant, employee, officer, official, or contractor who feels he or she has been retaliated against in violation of this Policy should immediately report the conduct according to the City's Harassment Complaint procedure so that the complaint can be resolved fairly and quickly. -70- CITY COUNCIL Agenda # 7. 1 Meeting Date: Aug. 19, 2008 AGENDA REPORT TO: Honorable Mayor and Members of the City Council ii. ) VIA: James DeStefano, City Manaaer TITLE: Adoption of Resolution No. 200088 -XX. Amending the City's Conflict of Interest Code for Designated City Personnel and Rescinding Resolution No. 2006-50 in its Entirety RECOMMENDATION: It is recommended that the City Council open the Public Hearing, receive testimony, close the Public Hearing and adopt Resolution No. 2008 -XX amending Appendix A of the City's Conflict of Interest Code by adding, renaming or deleting certain positions. FINANCIAL SUMMARY: No financial impact associated with this item. BACKGROUND: On June 3, 2008, the City Council adopted Resolution No. 2008-20 establishing job salary schedules for City job classifications. In order to appropriately match the City's Personnel System, the City's Conflict of Interest Code needs to be amended. DISCUSSION: With the adoption of Resolution No. 2008-20, which established a compensation plan for all classes of City employment, classifications were either created, re -titled or eliminated. Specifically the positions of Development Services Associate, Public Works Services Manager, Senior Neighborhood Improvement Officer and Recreation Supervisor II were eliminated. The positions of Planning Manager, Assistant Planner and Recreation Services Superintendent were added. The following positions were re -titled to better define responsibilities: Network/GIS Engineer changed to Network/Systems Administrator; Public Works Street Maintenance Superintendent to Street Maintenance Superintendent; Senior Engineer to Senior Civil Engineer. As a result of these changes, the City must amend the Conflict of Interest Code to correctly identify the positions which must file Statements of Economic Interest. The attached Resolution identifies all positions which are required to file the appropriate forms. PR�PARED BY: t Tomm e Cribbins City Clerk Attachments: REVIEWED B David Doyle, s . City Manager RESOLUTION NO. 2008- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR AMENDING THE CITY'S CONFLICT OF INTEREST CODE FOR DESIGNATED CITY PERSONNEL AND RESCINDING RESOLUTION NO. 2006-50 IN ITS ENTIRETY A. Recitals. (i) The City of Diamond Bar has heretofore enacted a Conflict of Interest Code for designated personnel. (ii) The Political Reform Act of 1974, California Government Code Sections 81000, et seq., requires the City to adopt amendments to its Conflict of Interest Code to ensure employees of the City are appropriately designated when new employees are added to The City or changed circumstances occur with respect to job functions. (iii) Pursuant to the provisions of California Government Code Section 87311, a duly noticed Public Hearing was conducted and concluded prior to the adoption of this Resolution. B. Resolution. NOW, THEREFORE, the City Council of the City of Diamond Bar does hereby find, determine and resolve as follows: 1. In all respect as set forth in Part A, Recitals, of this Resolution are true and correct. 2. The City's Conflict of Interest Code, as heretofore adopted, hereby is amended by the adoption of a new Exhibit "A" setting forth designated employees and disclosure categories pertaining thereto. 3. Persons holding designated positions shall file statements of economic interests pursuant to Sections 4 and 5 of the Conflict of Interest Code. 4. The City Clerk shall certify to the adoption of this Resolution. PASSED, ADOPTED AND APPROVED this day of .2008. Jack Tanaka, Mayor I, Tommye Cribbins, City Clerk of the City of Diamond Bar do hereby certify that the foregoing Resolution was passed, adopted and approved at a regular meeting of the City Council of the City of Diamond Bar held on the day of , 2008, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: City Clerk of the City of Diamond Bar ATTACHMENT A CONFLICT OF INTEREST CODE FOR THE CITY OF DIAMOND BAR The Political Reform Act, Government Code Section 81000, et. seq., requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation, 2 Cal. Code of Regs. Section 18730, which contains the terms of a standard conflict of interest code. It can be incorporated by reference and may be amended by the Fair Political Practices Commission after public notice and hearings to conform to amendments in the Political Reform Act. Therefore, the terms of 2 Cal. Code of Regs. Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference and, along with the attached Appendix in which members and employees are designated and disclosure categories are set forth, constitute the conflict of interest code of the City of Diamond Bar. Designated employees shall file statements of economic interests with the agency who will make the statements available for public inspection and reproduction. (Gov. Code Section 81008). Upon receipt of the statements of the City Council, Planning Commission and City Manager, the agency shall make and retain a copy and forward the original of these statements to the Fair Political Practices Commission. Statements for all other designated employees will be retained by the agency. APPENDIX A DESIGNATED EMPLOYEES CATEGORIES Assistant Engineer Assistant Planner (add) Assistant City Manager Assistant to the City Manager Associate Engineer Associate Planner Building Official City Clerk City Engineer/ Public Works Director Community Development Director Community Services Director (eliminated) Finance Director Human Resources Manager Information Systems Director Management Analyst Network/Systems Administrator (re titled-Network/GIS Eng.) Parks & Recreation Commission Parks and Maintenance Superintendent Parks and Maintenance Supervisor Planning Manager Public Information Manager (eliminated) Public Works Street Maintenance Superintendent (retitled to Street Maintenance Superintendent Recreation Services Manager Recreation Services Superintendent (created) Recreation Supervisor (eliminated) Senior Accountant Senior Engineer (re -titled - Senior Civil Engineer) Senior Management Analyst (eliminated) Street Maintenance Superintendent Traffic & Transportation Commission DISCLOSURE 1 1,2 1 1 1,2 1,2 1,2 1 1,2 1 1,2 1 1 1 1,2 1 • NOTE: City Council, City Manager, City Attorney, Treasurer and Planning Commissioners are required to submit disclosure statements pursuant to State law (California Government Code Sections 87200, et. seq.), not this Code. ATTACHMENT B CONSULTANTS, AD HOC COMMITTEES, TASK FORCES AND SIMILAR GROUPS ** Commission Regulation 18700 defines "consultant" as an individual who, pursuant to a contract with a state or local government agency: (A) Makes a governmental decision whether to: (i) Approve a rate, rule, or regulation; (ii) Adopt or enforce a law; (iii) Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement; (iv) Authorize the agency to enter into, modify, or renew a contract provided it is the type of contract which requires agency approval; (v) Grant agency approval to a contract which requires agency approval and in which the agency is a party or to the specifications for such a contract; (vi) Grant agency approval to a plan, design, report, study, or similar item; (vii) Adopt, or grant agency approval of, policies, standards, or guidelines for the agency, or for any subdivision thereof; or (B) Serves in a staff capacity with the agency and in that capacity performs the same or substantially all the same duties for the agency that would otherwise be performed by an individual holding a position specified in the agency's Conflict of Interest Code. ** With respect to consultants, ad hoc committees, task forces and similar groups, the City Manager shall determine in writing if a particular consultant, ad hoc committee, task force or similar group performs a range of duties requiring disclosure hereunder. That determination shall include a description of the consultant's, ad hoc committee's, task force's or similar group's duties and a statement of the extent of disclosure requirements. A copy of that determination shall be filed with the City Clerk and a copy forwarded to the City Council. APPENDIX B Category 1 Persons in this category shall disclose all interests in real property within the jurisdiction of the City. Real property shall be deemed to be within the jurisdiction if it or any part of it is located not more than two miles outside the City's boundaries or within two miles of any land owned or used by the City. Category 2 Persons in this category shall disclose all income from and investments in the businesses which provide or sell services or supplies of the type associated with the job assignment and utilized by the City. In addition, as to any business entity in which the person or his or her spouse owns, directly, indirectly or beneficially, a ten percent or greater interest, the person shall disclose his or her pro rata share of the income and the sources of income of the entity if the entity provides or sells services or supplies of the type indicated in the first sentence of this paragraph. APPENDIX "C" 82030. Income. (a) "Income" means, except as provided in subdivision (b), a payment received, including but not limited to any salary, wage, advance, dividend, interest, rent, proceeds from any sale, gift, including any gift of food or beverage, loan, forgiveness or payment of indebtedness received by the filer, reimbursement for expenses, per diem, or contribution to an insurance or pension program paid by any person other than an employer, and including any community property interest in the income of a spouse. Income also includes an outstanding loan. Income of an individual also includes a pro rata share of any income of any business entity or trust in which the individual or spouse owns, directly, indirectly or beneficially, a ten (10) percent interest or greater. "Income," other than a gift, does not include income received from any source outside the jurisdiction and not doing business within the jurisdiction, not planning to do business within the jurisdiction, or not having done business within the jurisdiction during the two years prior to the time any statement or other action is required under this title. (b) "Income" also does not include: (1) Campaign contributions required to be reported under Chapter 4 (commencing with Section 84100). (2) Salary and reimbursement for expenses or per diem received from a state, local, or federal government agency and reimbursement for travel expenses and per diem received from a bona fide nonprofit entity exempt from taxation under Section 501(c)(3) of the Internal Revenue Code. (See 26 U.S.C.A. §501.) (3) Any devise or inheritance. (4) Interest, dividends, or premiums on a time or demand deposit in a financial institution, shares, in a credit union or any insurance policy, payments received under any insurance policy, or any bond or other debt instrument issued by any government or government agency. (5) Dividends, interest, or any other return on a security which is registered with the Securities and Exchange Commission of the United States government or a commodity future registered with the Commodity Futures Trading Commission of the United States government, except proceeds from the sale of these securities and commodities futures. (6) Redemption of a mutual fund. (7) Alimony or child support payments. (8) Any loan or loans from a commercial lending institution which are made in the lender's regular course of business on terms available to members of the public without regard to official status if: (A) The loan is secured by the principal residence of filer; or (B) The balance owed does not exceed ten thousand dollars ($10,000). (g) Any loan from or payments received on a loan made to an individual's spouse, child, parent, grandparent, grandchild, brother, sister, parent -in- law, brother-in-law, sister-in-law, nephew, niece, uncle, aunt, or first cousin, or the spouse of any such person, provided that a loan or loan payment received from any such person shall be considered income if he or she is acting as an agent or intermediary for any person not covered by this paragraph. (10) Any indebtedness created as part of a retail installment or credit card transaction if made in the lender's regular course of business on terms available to members of the public without regard to official status, so long as the balance owed to the creditor does not exceed ten thousand dollars ($10,000). (11) Payments received under a defined benefit pension plan qualified under Internal Revenue Code Section 401(a). (See 26 U.S.C.A. §401.) (12) Proceeds from the sale of securities registered with the Securities and Exchange Commission of the United States government or from the sale of commodities futures registered with the Commodity Futures Trading Commission of the United States government if the filer sells the securities or the commodities futures on a stock or commodities exchange and does not know or have reason to know the identity of the purchaser. CITY COUNCIL Agenda # 7 , 2 Meeting Date: must 19, 2008 AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Mana e TITLE: AN ORDINANCE OF THE CI Y OF DIAMOND BAR EXTENDING ORDINANCE NO. 04 (2008) PROHIBITING CERTAIN GROUP RESIDENTIAL USES INCONSISTENT WITH RESIDENTIAL ZONES AND PROVIDING REASONABLE ACCOMMODATION PROVISIONS FOR THE DISABLED, PURSUANT TO GOVERNMENT CODE SECTION 65858 RECOMMENDATION: Adopt Ordinance No. 04A (2008). BACKGROUND/ANALYSIS: On July 15, 2008, the City Council adopted Interim Urgency Ordinance No. 04 (2008) that prohibited for 45 days the establishment of certain group residential uses inconsistent with residential zones and provided reasonable accommodation provisions for the disabled, The Interim Urgency Ordinance provides temporary relief from the potential impacts of noise, traffic, parking and law enforcement from certain group residential uses in residential zones. However, the adopted Urgency Ordinance provides for reasonable accommodations in the City's zoning and land use regulations, policies and practices, when needed to provide individuals with disabilities an equal opportunity to use and enjoy a dwelling. Staff is studying new development standards and locational criteria for group residential uses and residential facilities. It is likely that new development standards for these uses will change as a result of the study. Due to the time required to prepare the new standards and locational criteria, staff anticipates that the adoption of the new regulations and updating the Development Code will not be completed before the Interim Urgency Ordinance's August 28, 2008 expiration date. Consequently, staff recommends that the City Council extend the Urgency Ordinance for an additional 10 months and 15 days as permitted by Government Code Section 65858. ENVIRONMENTAL REVIEW: In accordance with the provisions of the California Environmental Quality Act (CEQA) Guidelines, Sections 15061(b)(3) and 15305, the City has determined that this activity is categorically exempt. NOTICE OF PUBLIC HEARING: Notice for this hearing was published in the Inland Valley Bulletin and the San Gabriel Valley Tribune on August 8, 2008, in a 1/8 page display. Pursuant to Planning and Zoning Law Government Code Section 65091(a)(3), if the number of property owners to whom a public hearing notice would be mailed is greater than 1000, a local agency may provide notice by placing a display advertisement 1/8 page in one newspaper of general circulation. PREPA D lit 4 ARM V V Nan y FongICP Community te-V pment Director Attachments: 1. Draft Ordinance No. 04A (2008); and 2. Ordinance No. 04 (2008) REVIEWED Dave Doyle Assistant City Manager ORDINANCE NO. 04A (2008) AN ORDINANCE OF THE CITY OF DIAMOND BAR EXTENDING ORDINANCE NO. 04 (2008) PROHIBITING CERTAIN GROUP RESIDENTIAL USES INCONSISTENT WITH RESIDENTIAL ZONES AND PROVIDING REASONABLE ACCOMMODATION PROVISIONS FOR THE DISABLED ACCORDING TO THE PROVISIONS OF GOVERNMENT CODE SECTION 65858 AND DECLARING THE URGENCY THEREOF. The City Council of the City of Diamond Bar does hereby ordain as follows: Section 1. Moratorium Extended. Ordinance No. 04 (2008), adopted July 15, 2008, is hereby extended for 10 months and 15 days from August 28, 2008 to July 15, 2009. Section 2. Penalties. Violation of any provision of this Ordinance shall constitute a misdemeanor and shall be punishable by a fine not to exceed $1,000 or by imprisonment in County jail for not to exceed six (60 months, or by both such fine and imprisonment. Each and every day such a violation exists shall constitute a separate and distinct violation of this Ordinance. In addition to the foregoing, any violation of this Ordinance shall constitute a public nuisance and shall be subject to abatement as provided by all applicable provisions of law. Section 3. Severability. If any part or provision of this Ordinance or the application to any person or circumstance is held invalid, the remainder of this Ordinance, including the application of such part of provision to other persons or circumstances, shall not be affected and shall continue in full force and effect. To this end, the provisions of this Ordinance are severable. Section 4. Purpose and Findings: Urgency. The land use impacts associated with different types of group residential uses in residential zones and the City's authority to address those impacts have not been addressed in light of recent legal developments. The secondary impacts of these facilities, particularly pertaining to noise, traffic, parking and law enforcement can more adequately be addressed following review and updating of the City's current regulations. The City is currently studying new development standards and locational criteria for group residential uses and residential care facilities in order to ensure proper and appropriate regulation of the use and occupancy of single-family properties throughout the city in order to preserve the residential character of the neighborhoods. It is likely that zoning standards for these uses will change as a result of this update. Due to the time required to prepare and adopt these new regulations and update the zoning ordinance, this Ordinance is intended to place an interim prohibition on the establishment of new facilities and uses in residential zoning districts as of the date of adoption hereof until new permanent regulations are prepared and adopted by the City Council. Notwithstanding the above, in accordance with Federal and State fair housing laws, this ordinance also provides for reasonable accommodations in the City's zoning and land use regulations, policies, and practices, during the term of this Ordinance or any extension thereof, when needed to provide an individual with a disability an equal opportunity to use and enjoy a dwelling. Based on the findings set forth in this section, certain group residential uses pose a current and immediate threat to the public, health, safety and welfare. This ordinance is necessary to alleviate and address that threat by prohibiting the establishment of new specified group residential uses that may be inconsistent with new zoning standards currently being developed until those revised standards can be established and adopted. This ordinance is adopted pursuant to California Government Code Section 65858 and shall take effect immediately upon adoption of a four-fifths vote of the City Council. This ordinance shall be in full force and effect for a period of 10 months and 15 days from August 28, 2008 to July 15, 2009 unless extended by the City Council in accordance with the provisions of California Government Code Section 65858. Section 5. Conflicting Laws. For the term of this Ordinance, or any extension thereof, the provisions of this Ordinance shall govern over any conflicting provisions or any other City code, ordinance, resolution or policy. Section 6. California Environmental Quality Act Finding. Pursuant to the provisions of the California Environmental Quality Act (CEQA) Guidelines, Sections 15061(b)(3) and 15305, the City has determined that this activity is categorically exempt. PASSED, APPROVED AND ADOPTED this 19th day of August 2008. Jack Tanaka, Mayor I, Tommye Cribbins, City Clerk of the City of Diamond Bar do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Diamond Bar held on the 19th day of August and was finally passed at the regular meeting of the City Council of City of Diamond Bar held on the 19th day of August by the following vote: AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: ATTEST Tommye Cribbins, City Clerk ORDINANCE NO. 04(2008) AN INTERIM ORDINANCE OF THE CITY OF DIAMOND BAR PURSUANT TO GOVERNMENT CODE SECTION 65858 PROHIBITING CERTAIN GROUP RESIDENTIAL USES INCONSISTENT WITH RESIDENTIAL ZONES AND PROVIDING REASONABLE ACCOMMODATION PROVISIONS FOR THE DISABLED AND DECLARING THE URGENCY THEREOF. The City Council of the City of Diamond Bar does hereby ordain as follows: SECTION 1. Purpose and findings. The land use impacts associated with different types of group residential uses in residential zones and the City's authority to address those impacts have not been addressed in light of recent legal developments. The secondary impacts of these facilities, particularly pertaining to noise, traffic, parking and law enforcement can more adequately be addressed following review and updating of the City's current regulations. The City is currently studying new development standards and locational criteria for group residential uses and residential care facilities in order to ensure proper and appropriate regulation of the use and occupancy of single-family properties throughout the city in order to preserve the residential character of the neighborhoods. It is likely that zoning standards for these uses will change as a result of this update. Due to the time required to prepare and adopt these new regulations and update the zoning ordinance, this Ordinance is intended to place an interim prohibition on the establishment of new facilities and uses in residential zoning districts as of the date of adoption hereof until new permanent regulations are prepared and adopted by the City Council. Notwithstanding the above, in accordance with Federal and State fair housing laws, this ordinance also provides for reasonable accommodations in the City's zoning and land use regulations, policies, and practices, during the term of this Ordinance or any extension thereof, when needed to provide an individual with a disability an equal opportunity to use and enjoy a dwelling. SECTION 3. Definitions. For purposes of this Ordinance, the following terms shall be defined as set forth below: "Boarding or Rooming House" means a residence or dwelling unit, or part thereof, wherein a room or rooms are rented under two or more separate written or oral rental agreements, leases or subleases or combination thereof, whether or not the owner, agent or rental manager resides within the residence. "Fair housing laws" means the Federal Fair Housing Act, the Americans with Disabilities Act, and California's Fair Employment and Housing Act, as each Act may be amended from time to time, and each Act's implementing regulations. "Family" means one or more persons living together as a single housekeeping unit in a dwelling unit. "Group Residential" means shared living quarters, occupied by two or more persons not living together as a single housekeeping unit. This classification includes, without limitation, boarding or rooming houses, dormitories, fraternities, sororities, and private residential clubs, but excludes residential care facilities (general, small licensed, and small unlicensed). "Individual with a disability," as more specifically defined under the fair housing laws, means a person who has a physical or mental impairment that limits one or more major life activities, a person who is regarded as having that type of impairment, or a person who has a record of that type of impairment, not including current, illegal use of a controlled substance. "Parolee -Probationer Home" means any residential structure or unit, whether owned and/or operated by an individual or a for-profit or nonprofit entity, which houses two or more parolees -probationers unrelated by blood, marriage, or legal adoption, in exchange for monetary or nonmonetary consideration given and/or paid by the parolee -probationer and/or any public or private entity or person on behalf of the parolee -probationer. A parolee -probationer includes: (1) any individual who has been convicted of a Federal crime, sentenced to a United States prison, and received conditional and revocable release in the community under the supervision of a Federal Parole Officer; (2) any individual who has served a term of imprisonment in a State prison and who is serving a period of supervised community custody, as defined in Penal Code Section 3000, and is under the jurisdiction of the California Department of Corrections, Parole and Community Services Division; (3) an adult or juvenile sentenced to a term in the California Youth Authority and who has received conditional and revocable release in the community under the supervision of a Youth Authority Parole Officer; or (4) any individual who has been convicted of a felony, sentenced to any correctional facility, including County correctional facilities, and is under the jurisdiction of any Federal, State, or County Parole or Probation Officer. For the purposes of this section, "felony" means a felony as defined by any California or United States statute. "Residential Care Facilities, General" means any place, site or building, or groups of places, sites or buildings, licensed by the State or unlicensed, in which seven or more individuals with a disability reside who are not living together as a single housekeeping unit and in which every person residing in the facility (excluding the licensee, members of the licensee's family, or persons employed as facility staff) is an individual with a disability. "Residential Care Facilities, Small Licensed" means State -licensed facilities that provide care, services, or treatment in a community residential setting for six or fewer adults, children, or adults and children and which are required by State law to be treated as a single housekeeping unit for zoning purposes. Small licensed residential care facilities shall be subject to all land use and property development regulations applicable to single housekeeping units. This term does not include child day care facilities or adult day care facilities as those terms are defined in the Diamond Bar Municipal Code. "Residential Care Facilities, Small Unlicensed" means any place, site or building, or groups of places, sites or buildings, which is not licensed by the State of California and is not required by law to be licensed by the State, in which six or fewer individuals with a disability reside who are not living together as a single housekeeping unit and in which every person residing in the facility (excluding persons employed as facility staff) is an individual with a disability. "Single-family residential" means a building or buildings containing one dwelling unit 4 located on a single lot for occupancy by one family. This classification includes mobile homes and factory -built housing. "Single housekeeping unit" means the functional equivalent of a traditional family, whose members are an interactive group of persons jointly occupying a single dwelling unit, including the joint use of and responsibility for common areas, and sharing household activities and responsibilities such as meals, chores, household maintenance, and expenses, and where, if the unit is rented, all adult residents have chosen to jointly occupy the entire premises of the dwelling unit, under a single written lease with joint use and responsibility for the premises, and the makeup of the household occupying the unit is determined by the residents of the unit rather than the landlord or property manager. SECTION 3. Prohibition of Certain Uses. A. The establishment of the following uses, whether or not a permit of any kind is required from the City, are prohibited during the term of this Ordinance in the RR, RL, and RLM residential zoning districts as those zoning districts are defined in the Diamond Bar Municipal Code, except as approved through the reasonable accommodation process set forth below in Section 4: 1. Group Residential 2. Residential Care Facilities, General 3. Residential Care Facilities, Small Unlicensed. Notwithstanding any provision of the Diamond Bar Municipal Code to the contrary, no zoning permits or approvals, subdivision maps or building permits for such uses shall be approved or issued in the RR, RL and RLM zoning districts in the City during the term of this Ordinance or any extension thereof, except as approved through the reasonable accommodation process set forth below in Section 4. B. The establishment of Parolee -Probationer Homes shall be prohibited in all residential zones during the term of this Ordinance. Notwithstanding any provision of the Diamond Bar Municipal Code to the contrary, no zoning permits or approvals, subdivision maps or building permits for such uses shall be approved or issued in residential zoning districts in the City during the term of this Ordinance or any extension thereof. SECTION 4. Reasonable Accommodation. In accordance with Federal and State fair housing laws, it is the purpose of this section to provide reasonable accommodations in the application of this interim ordinance and to the City's zoning and land use regulations, policies, and practices when needed to provide an individual with a disability an equal opportunity to use and enjoy a dwelling. A. Application for Reasonable Accommodation. An application for a reasonable accommodation from this ordinance or other zoning regulation, policy, or practice shall be made to the Community Development Director and shall include: 1. The provision of this ordinance or other zoning regulation, policy, or practice from which accommodation is being requested. No fee shall be required for a request for reasonable accommodation, but if the project requires another discretionary permit, then the prescribed fee shall be paid for all other discretionary permits. 2. Documentation that the applicant is: (a) an individual with a disability; (b) applying on behalf of one or more individuals with a disability; or (c) a developer or provider of housing for one or more individuals with a disability; 3. Documentation that the specific exception or modification requested by the applicant is necessary to provide one or more individuals with a disability an equal opportunity to use and enjoy the residence; 4. Any other information that the Planning Director reasonably concludes is necessary to determine whether the findings required by subsection 4.13. below can be made, so long as any request for information regarding the disability of the individuals benefited complies with fair housing law protections and the privacy rights of the individuals affected. B. Findings. The written decision to approve, conditionally approve, or deny a request for reasonable accommodation shall be based on the following findings, all of which are required for approval: 1. The requested accommodation is requested by or on behalf of one or more individuals with a disability protected under the fair housing laws. 2. The requested accommodation is necessary to provide one or more individuals with a disability an equal opportunity to use and enjoy a dwelling. 3. The requested accommodation will not impose an undue financial or administrative burden on the City as "undue financial or administrative burden" is defined in fair housing laws and interpretive case law. 4. The requested accommodation will not result in a fundamental alteration in the nature of the City's zoning program, as "fundamental alteration" is defined in fair housing laws and interpretive case law. 5. The requested accommodation will not, under the specific facts of the case, result in a direct threat to the health or safety of other individuals or substantial physical damage to the property of others. C. Factors_ In making a decision regarding the reasonableness of the requested accommodation, the following factors may be considered: 1. Whether the requested accommodation will affirmatively enhance the quality of life of one or more individuals with a disability. 2. Whether the individual or individuals with a disability will be denied an equal opportunity to enjoy the housing type of their choice absent the accommodation. 3. In the case of a residential care facility, whether the requested accommodation is necessary to make facilities of a similar nature or operation economically viable in light of the particularities of the relevant market and market participants. 4. In the case of a residential care facility, whether the existing supply of facilities of a similar nature and operation in the community is sufficient to provide individuals with a disability an equal opportunity to live in a residential setting. 5. Whether the requested accommodation would fundamentally alter the character of the neighborhood; 6. Whether the accommodation would result in a substantial increase in traffic or insufficient parking; 7. Whether granting the requested accommodation would substantially undermine any express purpose of either the City's General Plan or an applicable specific plan; 8. In the case of a residential care facility, whether the requested accommodation would create an institutionalized environment due to the number of and distance between facilities that are similar in nature or operation. D. Hearing and Decision. Any request for reasonable accommodation shall be reviewed by the Planning Commission at a public hearing and may be approved, conditionally M approved or denied by the Planning Commission. The Planning Commission may approve alternative reasonable accommodations which provide an equivalent level of benefit to the applicant. SECTION 4. Penalties. Violation of any provision of this Ordinance shall constitute a misdemeanor and shall be punishable by a fine not to exceed $1,000 or by imprisonment in County jail for not to exceed six (6) months, or by both such fine and imprisonment. Each and every day such a violation exists shall constitute a separate and distinct violation of this Ordinance. In addition to the foregoing, any violation of this Ordinance shall constitute a public nuisance and shall be subject to abatement as provided by all applicable provisions of law. SECTION 5. Severability. If any part or provision of this Ordinance or the application to any person or circumstance is held invalid, the remainder of this Ordinance, including the application of such part of provision to other persons or circumstances, shall not be affected and shall continue in full force and effect. To this end, the provisions of this Ordinance are severable. SECTION 6. Urgency. Based on the findings set forth in Section 1 hereof, certain group residential uses pose a current and immediate threat to the public health, safety and welfare. This Ordinance is necessary to alleviate and address that threat by prohibiting the establishment of new specified group residential uses that may be inconsistent with new zoning standards currently being developed until those revised standards can be established and adopted. This ordinance is adopted pursuant to California Government Code Section 65858 and shall take effect immediately upon adoption by a four-fifths vote of the City Council. This ordinance shall be in full force and effect for a period of forty-five (45) days from the date of its adoption unless extended by the City Council in accordance with the provisions of California Government Code Section 65858. SECTION 7. Conflicting Laws. For the term of this Ordinance, or any extension thereof, the provisions of this Ordinance shall govern over any conflicting provisions of any other City code, ordinance, resolution or policy. SECTION 8. This Urgency Ordinance is not subject to the California Environmental Quality Act ("CEQA") because the proposed code amendment will not result in a direct or reasonably foreseeable indirect physical change in the environment (Section 15060(c)(2) of the CEQA Guidelines) and this ordinance is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment (Section 15061 (b)(3) of the CEQA Guidelines); moreover, this ordinance is also exempt from CEQA pursuant to Section 15305 of the CEQA Guidelines (minor alterations in land use). PASSED, APPROVED AND ADOPTED this 15th day of July, 2008. Jack Tanaka, Mayor i, Tommye Cribbins, City Clerk of the City of Diamond Bar do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Diamond held on the 15th day of July. Zoos and was finally passed at a regular meeting of the City Council of the City of Diamond Bar held on the 15th day of July 2008, by the following vote: AYES: Council Members: Chang, Herrera, Tye, MPT/Everett, M/Tye NOES: Council Members: Done ABSENT: Council Members: None ABSTAIN: Council Members: None I \1"� , - oj��-L Tommye°Cribbins., City Clerk Agenda No. PFA 3.1 DIAMOND BAR PUBLIC FINANCING AUTHORITY ANNUAL MEETING APRIL 15, 2008 EJN RAFT 1. CALL TO ORDER: Chairman Tye called the meeting to order at 7:56 p.m. in the South Coast Air Quality Management District/Government Center Auditorium, 21865 Copley Dr., Diamond Bar, CA. ROLL CALL: Authority Members Chang, Herrera, Tanaka, VC/Everett, Chair/Tye Staff present: James DeStefano, Executive Director; Michael Jenkins, Authority Attorney; Ken Desforges, IS Director; David Liu, Public Works Director; Bob Rose, Community Services Director, Nancy Fong, Community Development Director, Linda Magnuson, Finance Director, Greg Gubman, Planning Manager; Cecilia Arellano and Tommye Cribbins, Authority Clerk. 2. PUBLIC COMMENTS: None Offered. 3. CONSENT CALENDAR: AM/Herrera moved, AM/Tanaka seconded, to approve the Consent Calendar as presented. Motion carried by the following Roll Call vote: AYES: AGENCY MEMBERS: Chang, Herrera, Tanaka, VC/Everett, Chair/Tye NOES: AGENCY MEMBERS: None ABSENT: AGENCY MEMBERS: None 3.1 APPROVED MINUTES — Annual Meeting of December 4, 2007 3.2 APPROVED TREASURER'S STATEMENT — November 1, 2007 through March 31, 2008. 5. AUTHORITY MEMBER CONSIDERATION: None 6. AUTHORITY MEMBER COMMENTS: None Offered. ADJOURN PUBLIC FINANCING AUTHORITY MEETING: With no further business to conduct, Chair/Tye adjourned the Public Financing Authority meeting at 7:58 p.m. back to the Regular City Council meeting. TOMMYE CRIBBINS, Authority Clerk ATTEST: STEVE TYE, Chairperson AUTHORITY TO: Honorable Mayor and Members of the City Council Agenda # PFA 3 . 2 Meeting Date: Aug. 19, 2008 AGENDA REPORT VIA: James DeStefano, City Man e TITLE: Public Financing Authority Treasure 's Statement for April 1, 2008 through June 30, 2008 RECOMMENDATION: Approve. FINANCIAL IMPACT: None BACKGROUND: In 2002 the City of Diamond Bar, through the Public Financing Authority issued Variable Rate Lease Revenue Bonds for the purpose of building the Diamond Bar Center. One of the requirements of the bond is that the City pay a monthly lease payment to the Public Financing Authority. This payment represents the debt service on the bond and consists of the monthly interest charge and 1/12 of the principal payment due on the following July 1St. The prepaid principal payments remain in the bank accounts and are invested and safeguarded until they are due each July 1St. These funds are transferred to the Bond Trustee Union Bank of California for disbursement. The Public Financing Authority bank accounts which reflect these activities are included in this Treasurer's Statement. Although the Public Financing Authority's funds have been incorporated into the City's monthly Treasurer's Statement, a separate Treasurer's Statement has been prepared for review and approval. This statement shows the cash balances for the various funds, with a breakdown of investment account balances and the effective yield earned from investments. It should be noted that all the funds in the Construction Fund have been used for the construction of the Diamond Bar Center. The funds in the Lease Prepay fund and the Lease Payment Fund are being used to pay the bond principal and interest as the payments become due. PREPARED BY: 441, �t 6xrjj-�� Finance (DiActor Attachments: Treasurer's Statement — April 1, 2008 through June 30, 2008 Assistant City Manager Diamond Bar Public Financing Authority Treasurer's Cash Statement 06/30/08 The Authority maintains a US Treasury Sweep Account with the City's Fiscal Agent, Union Bank of California. Any excess funds are "swept" on a daily basis from the Authority's bank accounts and are invested overnight in a pool of US Treasury Notes. Interest is credited to the Authority's bank accounts on a monthly basis. Union Bank Money Mkt - Effective Yield - June 2008 1.890% 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. Jam DeStefanc, Treasurer ENDING, TEAL- O31311U& -REC.EIPT;S DISBURSEMENTS �TRANSrFER - ..: BAL e- 06130/08 PFA - Construction Fund $0.00 $0.00 $0.00 $0.00 $0.00 PFA - Cost of Issuance Fund 0.00 0.00 0.00 0.00 0.00 PFA - Lease Prepay Fund 223,243.79 65,232.49 143.28 0.00 288,333.00 PFA - Lease Payment Fund 28,576.71 65,385.05 72,762.12 0.00 21,199.64 $251,820.50 $130,617.54 $72,905.40 $0.00 $309,532.64 CASH WITH FISCAL AGENT: US TREASURY Money Market Account $309,532.64 $309,532.64 The Authority maintains a US Treasury Sweep Account with the City's Fiscal Agent, Union Bank of California. Any excess funds are "swept" on a daily basis from the Authority's bank accounts and are invested overnight in a pool of US Treasury Notes. Interest is credited to the Authority's bank accounts on a monthly basis. Union Bank Money Mkt - Effective Yield - June 2008 1.890% 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. Jam DeStefanc, Treasurer T AUTHORITY Agenda # PFA 4.1 Meeting Date: August 19, 2008 AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Mana e TITLE: Award Contract to De La Rosa and Company for Remarketing Services for the 2002 Public Financing Authority Variable Rate Lease Revenue Bonds RECOMMENDATION: Approve. FINANCIAL IMPACT: No change in remarketing fees as a result of the change in contract. There is the possibility of savings due to more favorable interest rates. BACKGROUND: In 2002 the City of Diamond Bar, through the Public Financing Authority, issued Variable Rate Lease Revenue Bonds to finance the construction of the Diamond Bar Center. The debt service on these bonds is paid through a lease agreement with the City. To make sure the current debt structure continues to be the most economical solution, staff has been researching various options for refinancing the debt over the past several months. The options considered were: • Replacing the variable rate debt with a new fixed rate bond issue. This option would incur additional bond issuance costs, legal fees, bond insurance fees and result most likely in a higher interest rate. • Taking out a 20 year fixed rate loan from a bank. This option would result in the debt being paid off approximately five years earlier at a rate of approximately 4.3% (as quoted in 1/08). There would be a prepayment penalty during the first 10 years of the loan. The interest rate quoted is higher than what the City has experienced with the current variable rate debt. (averaged 1.5% in August) Using City reserves to pay the debt off. This option would greatly reduce investment earnings of the City. Since the City averages a higher yield on investments than the interest currently paid for this debt overall it would increase the City's costs. It would also limit the funds available to work on special projects such as economic development or covering potential losses of revenue resulting from the State's budgetary issues. Using an interest rate swap or collar to stabilize the interest rates. These options would provide a stable interest rate but would add costs to the current structure and may create some risk. If interest rates go up, the Authority/City would continue to pay the established interest rate, conversely if interest rates would go down the Authority/City would not benefit from the lower rate. Leaving the variable rate lease revenue bond in place as is. By leaving this structure in place it provides the benefit of continuing to benefit from very low interest rates. If interest rates were to rapidly rise there is a bond rate cap in place which caps the rate at 4.5% which remains in place until December 2012. The Authority continues to have the ability to repay the bonds at any time. Staff's analysis concluded that it would be best to leave the current financing structure in place. As part of the review process, staff received a proposal for remarketing services from De La Rosa and Company (see attachment). This firm is a California based firm which focuses primarily on the California municipal market. The information provided is a strong indication that this firm's remarketing efforts will out perform those of the current remarketing agent US Bancorp Piper Jaffray resulting in a savings to the Authority/City. Based on De La Rosa's past performance and emphasis in the California municipal market, it is recommended that the Authority award a contract for bond remarketing services to De La Rosa and Company. There is a 30 -day cancellation notice required by the current remarketing agreement. If approved, staff will provide notice to US Bancorp Piper Jaffray and the new contract with De La Rosa and Company will take effect on October 1, 2008. PREPARED BY: `yy Financ6 0,kector Attachments: De La Rosa Proposal Remarketing Agreement ssistant City Manage REMARKETING AGREEMENT VARIABLE RATE LEASE REVENUE BONDS, 2002 SERIES A (Community / Senior Center Project) This Remarketing Agreement (this "Agreement") is dated as of October 1, 2008, by and between the Diamond Bar Public Financing Authority (the "Authority") and De La Rosa & Co. (the "Remarketing Agent"). WITNESSETH: WHEREAS, the Authority issued its $13,755,000 aggregate original principal amount of Variable Rate Lease Revenue Bonds 2002 Series A (the "Bonds") pursuant to an Trust Agreement (the "Trust Agreement") dated as of December 1, 2002, by and between the Authority and Union Bank of California, National Association, as trustee (the "Trustee"); WHEREAS, the Bonds were issued for the purpose of constructing the Community / Senior Center project (the "Project"); WHEREAS, pursuant to the Trust Agreement, De La Rosa & Co. is appointed as remarketing agent for the Bonds to perform certain duties and to use of its best efforts to thereafter remarket any Bonds tendered for purchase by the Certificate owners; and WHEREAS, De La Rosa & Co. has agreed to accept the duties and responsibilities of the remarketing agent for the Bonds under the Trust Agreement and this Agreement; NOW, THEREFORE, for and in consideration of the mutual covenants made herein and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: Section 1. Definitions. Unless otherwise defined herein, all capitalized terms shall have the meanings ascribed to them in the Trust Agreement. Section 2. Appointment and Acceptance; Duties. (a) De La Rosa & Co. is hereby appointed as the Remarketing Agent for the Bonds, effective on October 1,2008, and hereby accepts its appointment as the Remarketing Agent and agrees to perform the duties and obligations imposed upon it as Remarketing Agent under the Trust Agreement and hereunder and agrees to keep such books and records with respect to its duties as Remarketing Agent under the Trust Agreement and hereunder as shall be consistent with prudent industry practice and to make such books and records available for inspection by the Authority and the Trustee at all reasonable times and upon reasonable notice. (b) It shall be a condition of the Remarketing Agent's obligations hereunder that there does not exist an Event of Default under Section 9.01 of the Installment Sale Agreement, dated as of October 1, 2008 (the "Installment Sale Agreement") by and between the City and the Authority, or under the Trust Agreement or the Liquidity Facility. (c) The Remarketing Agent may suspend its remarketing efforts hereunder immediately, after written notice to the Authority, the Trustee, the Tender Agent and the Liquidity Provider upon the occurrence of any of the following events, which suspension may continue only so long as such event continues to exist: (i) Breach. Any of the representations or warranties of the Authority made in Section 5 or Section 6 hereunder shall not have been true and correct in all material respects on the date made, or the Authority shall fail to observe any of the covenants or agreements made herein; (ii) Disclosure. Any event shall occur or information shall become known, which, in the reasonable judgment of the Remarketing Agent, makes untrue, incorrect or misleading in any material respect any statement or information contained in the Official Statement related to the Bonds, as it may be supplemented or amended, or in the prospectus and supplement relating to the letter of credit issued by Union Bank of California, as provider of liquidity with respect to tenders and remarketing of the Bonds, or other disclosure document provided to the Remarketing Agent in connection with the performance of its duties hereunder, whether provided pursuant to the provisions hereof or otherwise (collectively, the "Official Statement"), or causes such document to contain an untrue, incorrect or misleading statement of a material fact or to omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (iii) Securities Law Event. Legislation shall be enacted and become effective, or a decision by a court of the United States shall be rendered, or a stop order, ruling, regulation or official statement by, or on behalf of, the Securities and Exchange Commission or any other governmental agency having jurisdiction of the subject matter shall be issued or made, to the effect that, or any other event occurs which, in the reasonable judgment of the Remarketing Agent after consultation with the Authority and the Liquidity Provider, would have the effect that, the remarketing of obligations of the general character of the Bonds, or the remarketing of the Bonds, including all underlying obligations, as contemplated hereby or by the most current offering documents or materials for the Bonds, is in violation or would be in violation of any provision of the federal securities law, including the Securities Act of 1933, as amended, and as then in effect, or the registration provisions of the Securities Exchange Act of 1934, as amended, and as then in effect, or that the Trust Agreement is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended (the "Trust Indenture Act"), and as then in effect, or with the purpose or effect of otherwise prohibiting the remarketing of obligations of the general character of the Bonds, as contemplated hereby or by the most current offering documents or materials; or (iv) Maximum Legal Interest Rate. The Bonds cannot be remarketed at an interest rate which does not exceed the maximum rate allowed by law or by the provisions of the Trust Agreement or the Bonds. (d) The Remarketing Agent may suspend its remarketing efforts hereunder immediately, after notice as provided in (c) above, upon the occurrence of any of the following events, which suspension may continue so long as any such event continues to exist, but only if and to the extent, in the reasonable judgment of the Remarketing Agent after consultation with the Authority and the Liquidity Provider, the occurrence and continuation of such event shall cause the Bonds to be unremarketable: (i) Federal Income Tax Event. There shall be any federal or state legislation, effective, pending or favorably reported out of any legislative committee, or any decision of any federal or state court or by any order, ruling or regulation (final, temporary or proposed) of the Treasury Department or the Internal Revenue Service of the United States or other federal or state authority or regulatory body, or any release or announcement or communication issued or sent by the Treasury Department or the internal Revenue Service of the United States, affecting the status of the Authority, its property or income, obligations of the general character of the Bonds, as contemplated hereby, or the interest thereon, or any tax exemption with respect to obligations of the general character of the Bonds, as contemplated hereby, or the interest thereon, granted or authorized by the Internal Revenue Code of 1986, as amended; (ii) National Hostility. The engagement by the United States of America in hostilities which have resulted in a declaration of war or national emergency, or the occurrence of any other outbreak of hostilities or national or international calamity or crisis, financial or otherwise; (iii) Trading Impediments. There shall have occurred a general suspension of trading on the New York Stock Exchange or the American Stock Exchange or other national securities exchange; material restrictions are established upon trading of securities, including limited or minimum prices, by any governmental authority or by any national securities exchange; or a banking moratorium is declared by Federal or state authorities; (iv) Governmental Regulation. Any governmental authority shall impose, as to the Bonds, or obligations of the general character of the Bonds, any material restrictions not now in force, or increase materially those now in force; or (v) Ratings. The long-term or short-term rating of any of the Bonds shall have been withdrawn, suspended or downgraded by the Rating Agency after the date hereof. (e) The Remarketing Agent represents that it routinely engages in the remarketing of municipal securities such as the Bonds and agrees that it will settle all transactions hereunder pursuant to customary industry practice. So long as no Event of Default under the Installment Sale Agreement or Trust Agreement has occurred and is continuing, and, with respect to any particular Certificate, so long as the Remarketing Agent shall not have received notice of redemption of such Certificate, upon delivery of notice to the Remarketing Agent by any owner of Bonds or by the Trustee or DTC, in accordance with Section 4.07 of the Trust Agreement, the Remarketing Agent shall offer for sale and shall use its best efforts to remarket the Bonds referred to in such notice, any such sale to be made at a price equal to the principal amount thereof plus interest accrued thereon to the date of sale. The Remarketing Agent will continue to use its best efforts to remarket any Bonds that become Liquidity Provider Bonds after purchase under the Liquidity Facility. The Remarketing Agent, by entering into this Agreement, agrees to deliver the proceeds of the remarketing of the Bonds to the Trustee by 11:30 a.m., New York City time, on the Purchase Date, or alternatively, shall deliver to the Trustee by said time a commitment to deliver said proceeds to the Trustee not later than 2:30 p.m., New York City time. (f) At or prior to 3:00 p.m., New York City time, on the date any Bonds are to be purchased pursuant to the Trust Agreement, and as soon as practicable after any Liquidity Provider Bonds are remarketed, the Remarketing Agent shall give notice by telephone or telex, promptly confirmed in writing, to DTC, the Trustee and the Liquidity Provider, specifying the principal amount of such Bonds, if any, for which it has received remarketing proceeds pursuant to the remarketing of such Bonds and (to the extent then known) the names, addresses and taxpayer identification numbers of the purchasers of such Bonds and the principal amounts of the Bonds purchased by each such purchaser. With respect to any Certificate which bears interest at a Daily Rate, Weekly Rate or Short -Term Rate, or is in a denomination of at least $100,000, such information must be given to the Trustee at or prior to 5:00 p.m., New York City time, on the Business Day prior to the date such Certificate is to be delivered to the purchaser of such Certificate so as to enable the Trustee to register such Certificate in the name of the purchaser thereof. Section 3. Fees and Expenses. (a) The Authority agrees to compensate the Remarketing Agent for services related to the remarketing of the Bonds by payment of a fee computed as 1/8 of 1% per annum of the average daily outstanding principal amount of Bonds during any quarter, payable in quarterly installments in arrears; such payment shall be billed in January, April, July and March commencing in January 2008. In addition, in the event Bonds are remarketed following a mandatory tender for purchase, the Authority shall pay the Remarketing Agent for such remarketing such amount as the Authority and the Remarketing Agent shall agree. The Authority also will pay all expenses in connection with the preparation of any disclosure statement and the registration of the Bonds and any other documents relating to the Bonds under any securities laws or qualifying the Trust Agreement under the Trust Indenture Act, and will reimburse Remarketing Agent for all of its direct out-of-pocket expenses incurred by it as Remarketing Agent under this Agreement and the Trust Agreement, including counsel fees and disbursements. (b) When Bonds are remarketed in connection with the conversion of the interest rate to the Long -Term Mode or the Fixed Mode, the Authority shall pay the Remarketing Agent for such remarketing such amount as the Authority and the Remarketing Agent shall agree. (c) In addition to the fees set forth above, the Authority agrees to reimburse the Remarketing Agent for its actual out-of-pocket expenses reasonably incurred in connection herewith. Section 4. Representations, Covenants and Agreements of the Remarketing Agent. The Remarketing Agent, by its acceptance hereof, represents, covenants, and agrees with the Authority as follows: (a) The Remarketing Agent is authorized by law to perform all the duties and obligations imposed upon it as Remarketing Agent by this Agreement and the Trust Agreement. (b) The Remarketing Agent has full power and authority to execute and deliver this Agreement and to take all actions required or permitted to be taken by the Remarketing Agent by or under, and to perform and observe the covenants and agreements on its part contained in, this Agreement and the Trust Agreement. (c) Assuming the due authorization, execution and delivery of this Agreement by the Authority and the enforceability of this Agreement against the Authority, this Agreement is the legal, valid and binding obligation of the Remarketing Agent, enforceable against the Remarketing Agent in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws of general applicability affecting the enforcement of creditors' rights and to general principles of equity, regardless of whether such enforceability is considered in equity or at law. Section 5. Representations, Warranties, Covenants and Agreements of the Authority. The Authority, by its acceptance hereof, represents, warrants, covenants and agrees with the Remarketing Agent that it: (a) is a joint powers authority duly organized and existing under the laws of the State of California; (b) has full power and authority to take all actions required or permitted to be taken by the Authority by or under, and to perform and observe the covenants and agreements on its part contained in, this Agreement and any other instrument or agreement relating thereto to which the Authority is a party; (c) has, on or before the date hereof, duly taken all action necessary to be taken by it prior to such date to authorize (i) the execution, delivery and performance of this Agreement, the Trust Agreement and the Installment Sale Agreement (collectively, the "Authority Documents") and any other instrument or agreement that the Authority is a party to and that has been or will be executed in connection with the transactions contemplated by the Authority Documents; and (ii) the carrying out, giving effect to, consummation and performance of, the transactions and obligations contemplated by the Authority Documents; and (d) will promptly notify the Remarketing Agent of any material adverse changes that may affect the remarketing of the Bonds or any fact or circumstance that may constitute, or with the passage of time will constitute, an "Event of Default" under any Authority Document. Section 6. Disclosure Materials. (a) General. If the Remarketing Agent determines that it is necessary or desirable to use an official statement or other disclosure document in connection with its remarketing of the Bonds, the Remarketing Agent will notify the Authority, and the Authority will provide the Remarketing Agent with a disclosure document in respect of such Bonds reasonably satisfactory to the Remarketing Agent and its counsel, and the Authority hereby authorizes the Remarketing Agent to use such disclosure documents and the information contained therein in connection with the remarketing of such Bonds. The Authority will supply the Remarketing Agent with such number of copies of the disclosure document as the Remarketing Agent requests from time to time and the Authority will amend the document (and all documents incorporated by reference) so that at all times the document will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. In connection with the use of any disclosure document by the Remarketing Agent in its remarketing of the Bonds, the Authority will furnish to the Remarketing Agent such Bonds, accountants' letters and opinions of counsel as the Remarketing Agent reasonably requests. In addition, the Authority will take all steps reasonably requested by the Remarketing Agent that the Remarketing Agent or its counsel may consider necessary or desirable to (a) register the sale of the Bonds under any federal or state securities law or qualify the Trust Agreement under the Trust Indenture Act, or (b) enable the Remarketing Agent to establish a "due diligence" defense to any action commenced against the Remarketing Agent in respect of any disclosure document. (b) Compliance with Rule 15c2-12. In the event the Remarketing Agent is asked to remarket the Bonds in any situation that requires compliance with Rule 15c2-12 promulgated under the Securities Exchange Act of 1934, as amended (the "Rule"): (i) the Authority will provide the Remarketing Agent with an official statement or disclosure document that the Authority deems final as of its date (exclusive of pricing and other sales information permitted to be omitted by the Rule), prior to the date the Remarketing Agent bids for, offers or sells any such Bonds; (ii) the Authority will provide the Remarketing Agent with such number of copies of any official statement or other disclosure document prepared in connection therewith, as the Remarketing Agent may need to supply at least one copy thereof to each potential customer who requests it; (iii) the Authority shall provide the Remarketing Agent within seven Business Days after the interest rate is determined or by the time "money confirmations" are to be sent to customers, whichever is earlier, with a number of copies of the final Official Statement or disclosure document adequate to provide at least one copy of such final official statement or disclosure document to any customer or any potential customer for a period commencing on the date such final official statement or disclosure document is available and extending for the underwriting period as defined in the Rule (the "Underwriting Period") and, thereafter, for as long as may be required by the Rule. During the Underwriting Period, the Authority agrees to update, by written supplement or amendment or otherwise, the final official statement or disclosure document such that at all times during such period the final official statement or disclosure document will not contain an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (iv) the Authority will undertake, in a written agreement or contract for the benefit of Certificateowners, to provide the information required by paragraph (b)(5) of the Rule to the persons or entities and at the times required by paragraph (b)(5) of the Rule. (c) Accuracy and Completeness. In order to induce the Remarketing Agent to enter into this Agreement, the Authority hereby represents and warrants to the Remarketing Agent that, to the best of its knowledge, the information relating to the Authority and the Project contained in the Official Statement provided to the Remarketing Agent in connection with the performance of its duties hereunder is, at the Closing Date, true and correct in all material respects and that information relating to the Authority and the Project contained in the Official Statement does not, at the Closing Date, contain any untrue or misleading statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (d) Material Adverse Events; Default. If, at any time after the Closing Date, any event known to the Authority shall occur which might materially adversely affect the Bonds or the remarketing thereof, or if any Event of Default on the part of the Authority under any of the Authority Documents shall occur, then the Authority shall promptly notify the Remarketing Agent in writing of the circumstances and details of such event. (e) Amendments and Supplements. The Authority shall update, amend and supplement the Official Statement and other disclosure documents relating to the Bonds provided to the Remarketing Agent in connection with the performance of its duties hereunder, at the Authority's expense, in order that the Official Statement and such other disclosure documents, at all times during the term of this Agreement, will be true and correct in all material respects and will not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, to the extent the Authority has any information which would require such an update, amendment or supplement. If, in the reasonable judgment of the Remarketing Agent, an event shall occur which requires the Official Statement or such disclosure documents to be amended or supplemented in order to be true and correct in all material respects and not contain any untrue or misleading statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, then the Authority shall, at its own expense promptly upon the request of the Remarketing Agent, amend or supplement the Official Statement or such disclosure documents in form and substance reasonably satisfactory to the Remarketing Agent. During the term of this Agreement, the Authority shall cooperate with the Remarketing Agent to correct or complete, at the expense of the Authority, the Official Statement and such other disclosure documents as aforesaid and shall not refuse any reasonable request of the Remarketing Agent for information concerning the Authority for such purposes. The Authority will not amend or supplement, or request the amendment or supplementation of, the Official Statement prior to notifying the Remarketing Agent in writing of the proposed amendment or supplement thereto. (f) SEC Requirements. The Authority shall, at its own expense, take all steps requested by the Remarketing Agent that are necessary and appropriate for the Remarketing Agent to comply with Rule 15c2-12. In addition, the Authority, at its own expense, will take all steps reasonably requested by the Remarketing Agent that the Remarketing Agent or its counsel may consider necessary or desirable to (a) register the sale of the Bonds by the Remarketing Agent under any Federal or state securities law or qualify the Trust Agreement under the Trust Indenture Act, or (b) enable the Remarketing Agent to establish a "due diligence" defense to any action commenced against the Remarketing Agent in respect of any disclosure document. Section 7. Indemnification. (a) The Authority agrees to indemnify and hold harmless the Remarketing Agent and each person who controls the Remarketing Agent within the meaning of Section 15 of the Securities Act of 1933, as amended (the "1933 Act"), from and against any and all losses, claims, damages or liabilities, caused by (i) the failure to register any security under the 1933 Act, or to qualify any indenture under the Trust Indenture Act, in connection with the remarketing of the Bonds; or (ii) any untrue statement or alleged untrue statement of a material fact contained in the Official Statement or any amendment thereof or supplement thereto, or caused by the omission or alleged omission to state therein a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; except insofar as such losses, claims, damages or liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission based upon information furnished in writing to the Authority by the Remarketing Agent expressly for use therein. (b) In case any action shall be brought against the Remarketing Agent or any person controlling the Remarketing Agent, in respect of which indemnity may be sought against the Authority, the Remarketing Agent, as applicable, shall, as a condition to the above indemnity, promptly notify the Authority in writing, and the Authority shall assume the defense thereof, including the employment of counsel and payment of all reasonable expenses. The Remarketing Agent, or any such controlling person, as applicable, shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the Remarketing Agent, or the controlling person, as the case may be, unless (i) the employment of such counsel has been specifically authorized by the Authority in writing prior to the employment of such counsel or (ii) the named parties to any such action (including any impleaded parties) included both the Remarketing Agent, or such controlling person and the Authority, and the Remarketing Agent, or such controlling person, as the case may be, shall have been advised by an opinion of such counsel that there may be one or more legal defenses available to it which are adverse to or in conflict with those available to the Authority and that joint representation would be inappropriate under professional standards, in which case the Authority shall not have the right to assume the defense of such action on behalf of the Remarketing Agent, or such controlling person, as the case may be; it being understood, however, that the Authority shall not, in connection with any one such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys for the Remarketing Agent, or such controlling person, as the case may be (including controlling persons), and any such firm shall be reasonably satisfactory to the Remarketing Agent, or such controlling person, as the case may be. The Authority shall not be liable for any settlement of any such action effected without its written consent, but if settled with the prior written consent of the Authority, or if there be a final judgment for the plaintiff in any such action, the Authority agrees to indemnify and hold harmless the Remarketing Agent, or such controlling person, as the case may be, from and against any loss or liability by reason of such settlement or judgment to the extent provided for in subsection 7(a). Section 8. Remarketing Agent's Liabilities. The Remarketing Agent shall incur no liability to the Authority or any other party for its actions as Remarketing Agent pursuant to the terms hereof and of the Trust Agreement except for its gross negligence or willful misconduct. The obligation of the Remarketing Agent to remarket Bonds hereunder shall be on a best efforts basis. Section 9. Resignation or Removal of Remarketing Agent; Successor. The Remarketing Agent may at any time resign and be discharged from the duties and obligations created hereunder by giving at least thirty (30) days' written notice to the Trustee, the Tender Agent, the Liquidity Provider and the Authority. The Remarketing Agent may be removed by the Authority at any time, in each case with the consent of the Liquidity Provider, upon at least thirty (30) days' written notice to the Remarketing Agent, the Trustee and the Liquidity Provider. No removal or resignation shall become effective until the successor has been approved of by the Liquidity Provider and has delivered an acceptance of its appointment to the Trustee. Section 10. Dealing in Bonds by Remarketing Agent. The Remarketing Agent, in its individual capacity, either as principal or agent, may buy, sell, own, hold and deal in any of the Bonds, and may join in any action which any owner of any Certificate may be entitled to take with like effect as if it did not act in any capacity hereunder. The Remarketing Agent, in its individual capacity, either as principal or agent, may also engage in or be interested in any financial or other transaction with the Authority and may act as depositary, trustee or agent for any committee or body of Certificate owners or other obligations of the Authority as freely as if it did not act in any capacity hereunder. Section 11. Intention of Parties. It is the express intention of the parties hereto that no purchase, sale or transfer of any Bonds, as herein provided, shall constitute or be construed to be the extinguishment of any Certificate or its indebtedness or the reissuance of any Certificate or the refunding thereof unless specified otherwise by the Authority. Section 12. Notices. Unless otherwise provided herein, all notices, requests, Bonds or other communications hereunder shall be sufficiently given if the same shall be duly mailed by registered or certified mail, return receipt requested, postage prepaid, or sent by an electronic method capable of creating a written document at the point of receipt, in either case addressed as follows: (a) if to the Authority, to Diamond Bar Public Financing Authority, 21825 Copley Dr., Diamond Bar, CA 91765, Attention: City Manager; (b) if to the Trustee to Union Bank of California, 120 S. San Pedro, 4th Floor, Los Angeles, CA 90012, Attention: Corporate Trust Department; or (c) if to the Remarketing Agent, to De La Rosa & Co., 101 Montgomery Street, Suite 2150, San Francisco, CA 94104, Attention: Eric Scriven. Any party mentioned above may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates, requests or other communications shall be sent. Section 13. Miscellaneous. (a) Nothing herein shall be construed to make any party hereto an employee of the other or to establish any fiduciary relationship among the Authority and the Remarketing Agent except as expressly provided herein. (b) This Agreement is governed by the laws of the State of California. (c) This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. (d) If one or more of the covenants, provisions or agreements contained in this Agreement shall be determined by a court of competent jurisdiction to be invalid, the invalidity of such covenants, agreements and provisions shall in no way affect the validity or effectiveness of the remainder of this Agreement, and this Agreement shall continue in force to the fullest extent permitted by law. IN WITNESS WHEREOF, the Remarketing Agent and the Authority, intending to be legally bound, have caused their duly authorized representatives to execute and deliver this Remarketing Agreement as of the date first written above. DIAMOND BAR PUBLIC FINANCING AUTHORITY By: Authority Director DE LA ROSA & CO. Authorized Representative im i Dy-�, 1,�. RosA & Co. 1 N V E 4 7 ;,' E `i T 5 A Nt K E R S May 26, 2008 Ms. Linda Magnuson Finance Director City of Diamond Bar 21825 E. Copley Drive Diamond Bar, CA 91765-4178 Subject: $13,755,000 City of Diamond Bar Public Financing Authority Variable Rate Lease Revenue Bonds, 2002 Series A (Community/Senior Center Project) (the "2002 Bonds") Dear Ms. Magnuson: On behalf of De La Rosa & Co. ("De LaRosa" or "DLR"), I am pleased to present you with an update on the financial performance of the 2002 Bonds. As you know, while at another firm, I was the investment banker that worked with the City of Diamond Bar (the "City") to structure and execute this transaction. The analysis presented herein will outline the interest rates over the past 5 %i years, compare these to the then fixed rates that could have been achieved and outline alternatives going forward that may be worthy of City evaluation. In addition, I have included a statement of qualifications of De La Rosa with a specific emphasis upon our ability to remarket weekly re -set variable rate bonds at superior rates versus our competitors. BACKGROUND On December 19, 2002, the City closed on its 2002 Bond issue. During the Fall of 2002, numerous City Council workshops were conducted to evaluate various aspects of the financing program to fund the Community/Senior Center project (the "Project"). At the time, the City enjoyed an unrestricted general fund cash balance of approximately $29 million. Thus, one of the options seriously considered was to simply pay cash for the Project's construction. Also considered were various funding options. A thorough discussion as to the amount that the City would finance, as well as the type of financing that would be used was undertaken during at least 4 Council workshops. In the end, the City Council determined that it would finance 100% of the Project with a weekly re -set variable rate bond issuance. The key determining factors were the low rates and the ability to pre -pay at any time with 30 days notice. In order to mitigate the risk of potential interest rate increases, the City purchased a 10 year interest rate cap with a not -to -exceed rate of 4.50%. FINANCIAL PERFORMANCE TO DATE During the past 5 '/z years, the City has enjoyed an unprecedented period of low variable rates. In fact, during the first 2 years, the 2002 Bonds had resets below 1.00% for approximately 29 weeks. The table to the right outlines the average of the rates that have been set during each of the past 5'/z years, as well as the average for the entire period. In order to provide a true "apples to apples" comparison, additional costs must be added to these interest rates when comparing to what could have been secured in the fixed rate market in December, 2002. The costs that must be added are the letter of credit fee ("LOC"), the California State Teachers Retirement System ("CALSTRS") credit Ms. Linda Magnuson May 26, 2008 Page 2 wrap of the LOC fee and the remarketing fee. These costs are r included in the table summarizing the comparison between the Interest Rate 2.35% 2.35% 5.00% two types of bond structures. Please note that in late 2004, the Letter of Credit 0.85% 0.50% City's financial advisor (Kosmont) and I renegotiated the LOC CALSTRS 0.25% with Union Bank of California ("UBOC"). Originally, due to Remarketing 0.13% 0.13% the lack of a track record of the City in the debt markets, the Total 3.57% 2.97% 5.00% fact that it was the end of the year and many banks had "filled *LOC renegotiated beginning January 1, 2005 and up" on new California exposure, as well as the small relative again in December of 2007. size of the transaction, UBOC was the only LOC provider that would go through the full underwriting process and give a bid. At the time, UBOC offered a program that required the CALSTRS wrap to bring the LOC up to the required credit level to be effectively remarketed to variable rate bond investors. The original fee for the LOC and wrap was 110 basis points per year (85 bps for UBOC and 25 bps for the CALSTRS wrap). It was felt in late 2004 that the 2002 Bonds had "seasoned" enough to go out to re -bid for the LOC fee. UBOC pre-empted this effort, by unilaterally offering to reduce their fee to 70 bps and remove the CALSTRS wrap as it was no longer needed due to UBOC's recent credit rating upgrade. It is our understanding that this rate was again reduced in December, 2007 to 50 bps. The analysis conducted illustrates that the City has achieved what it set 2003 $329,466 $725,435 out to do in 2002: it has paid markedly less in financing costs and 2004 337,367 685,866 maintained the desired prepayment flexibility. In fact, as seen in the 2005 448,233 680,866 direct comparison to the fixed rates that could have been secured during 2005 448,854 668,]64 the same time frame as the 2002 Bonds' closing, the City has saved 2007 581,280 655,823 approximately $1.25 million to date (assume 5.00% fixed rate for 2008 150,451 249,795 comparison). Further, not only could it pre -pay in full with 30 days Total $2,417,652 $3,665,090 notice at no cost, it would be able to re -coup the "un -used'' portion of Difference: $3,247,438 the interest rate cap contract. Conversely, a fixed rate transaction would likely have been issued with a 10 year no pre -pay structure and would have required a full, up -front payment for a municipal bond insurance policy to secure the AAA rates. Thus, if the City desired to payoff a fixed rate transaction at this time, it would incur costs associated with funding an escrow for 4 1/2 years which would pay interest and principal until December 1, 2012. The primary cost, called "negative arbitrage" would be incurred using money that is earning a much higher rate of interest than would would be earned when placing the funds into an escrow that would likely earn much less based upon investment returns for 41/2 year high grade investments. Further, the "un -used" portion of the municipal bond insurance policy purchased at the 2002 Bonds' closing would not be recouped by the City. GOING -FORWARD OPTIONS At this time, it may be beneficial to the City to evaluate its options; however, we believe that this evaluation should be undertaken with a complete understanding of the City's goals and objectives in conjunction with potential pros/cons of each alternative. Among the key considerations that the City has offered and that DLR would amplify are 1) maintaining the lowest rates; 2) possibly locking in an attractive fixed rate; 3) maintaining maximum flexibility to prepay the Bonds in part or whole; and 4) minimizing costs of the option entered into. Thus, we believe that the City has the following alternatives to consider: 1. Use its Unrestricted General Fund balance to pay down or pay off the 2002 Bonds 2. Refinance all or part of the 2002 Bonds into a fixed rate loan 3. "Synthetically" fix the 2002 Bonds by utilizing an interest rate swap 4. Use a "collar" to narrow the range of potential future variation beyond the 10 year cap's expiration 5. Do nothing Ms. Linda Magnuson May 26, 2008 Page 3 Option 1– Use City cash on hand to pay off all or a portion of the 2002 Bonds: Per our conversation last week, the City has an unrestricted General Fund reserve of over $30 million. For the current year budget, you are anticipating that the interest portion of the debt service on the 2002 Bonds will be approximately $450,000. Thus, if the City desire to payoff the outstanding loan of $13,025,000 (after July 151 it will be $12,760,000), it would eliminate this cost, but would also lose the interest earned upon this amount taken from the City's reserves (we would conservatively estimate that a difference between interest rate paid and earned of 1.00%, or $130,000, would be lost per year). In addition, by reducing its unrestricted reserves, the City would be commensurately reducing its overall financial flexibility. This option would require the City to pay little or no costs to implement. Option 2 –Refinance all or portion into a fixed rate loan: It is my understanding that the City is contemplating taking out the 2002 Bonds with a 20 year, fixed rate loan. The benefit would be that the City would lock down its cost, with no variation, during the next 20 years; however, two key questions would need to be answered: 1) would this increase the total payment versus what has been enjoyed during the past 5 1/Z years and would possibly be secured during the next several years? and 2) could the City preserve its full flexibility to prepay all or a portion at any time? While costs of issuance of such a fixed rate loan could be held to a reasonable level, I would recommend a full cost and benefit analysis be conducted before deciding to undertake this option. Option 3 – "Synthetically" fix the 2002 Bonds by utilizing an interest rate swap: If the City desires to lock in extremely low fixed rates for part of or the full remaining term of 2002 Bonds, it may wish to consider entering into a variable to fixed interest rate swap ("swap"). An interest rate swap is a contract that is entered into by the City with a "swap counterparty," typically a highly rated financial institution such as Goldman Sachs or '.Morgan Stanley, whereby the City agrees to make a payment based upon a set fixed rate and the counterparty agrees to pay the City a variable rate based upon an index that closely matches the movements in the national municipal variable rate market. Thus, the next effect is that the City pays a variable rate on its 2002 Bonds and receives a variable rate based payment (structured to closely match the rate on the 2002 Bonds that is paid) from the Counterparty which cancel each other out, leaving the payment the counterparty that is based upon the fixed rate that the City pays under the swap contract. The critical component in this equation is that the index that is used in the swap for the counterparty to make the payment to the City needs to closely match that with which is paid on the 2002 Bonds. Two indices are typically utilized to accomplish this: SIFMA or a percentage of Libor index. The City would incur some, costs to enter into a swap and would need to carefully consider the various risks inherent in such a structure, but this structure does offer extremely low current fixed rates and would preserve the prepayment flexibility that the City currently enjoys with its 2002 Bonds. Option 4 – Use an Interest rate "Collar" to narrow the variation of interest rates: Similar to the interest rate cap that the City purchased at the time of the bond closing, a collar is a contract that is entered between the City and a counterparty that limits the highest and lowest interest rates that are paid on a transaction. Typically, collars are set to be "neutral." That is, the lower the top limit side of the collar, then the higher the bottom limit side must be. Thus, taken to the extreme, a collar can be narrowed completely into a swap, whereby there is no variation between the high and low side; conversely, a collar can be widened so far that there is no limit on the low side and a very high limit on the top side—thus, providing no real interest rate protection. Collars, like swaps, require that certain risks be considered and would require some costs to be incurred. Further, again like a swap, a collar would not disturb the current ability of the City to prepay its 2002 Bonds off with 30 days notice. Option 5 – Do nothing: The City is in the enviable position to let its current transaction structure remain in place. This has the benefit of allowing it to continue to enjoy very low variable re -sets and to maintain its ability to pre- pay all or portion of the 2002 Bonds at any time. The risks inherent in this strategy are that interest rates, short and long term, may rise. The cap that the City has purchased, with JP Morgan as the counterparty, runs through Ms. Linda Magnuson May 26, 2008 Page 4 December 18, 2012. Thus, the short term risks of rising rates are mitigated through that period of time, yet if it desires to fix out the rates in the future, there is no guarantee that fixed rates will be as low as they are in today's market. DE LA ROSA CREDENTIALS AND PERFORMANCE COMPARISON' By way of a quick summary, De La Rosa is one of the most active municipal finance underwriting firms in the State of California. Our clients vary in size from small cities, school and special district to lead managing roles on mult-billion dollar financings for the State of California, Some notable highlights of our credentials include: o Exclusive focus on the California municipal market —$202 billion underwritten since 1989 o 2nd largest California-based (Los Angeles) & California -focused sales & trading desk o One of the largest investment banking groups based in and focused upon California public agency issuers o Proven ability and willingness to put our firm's capital at risk to support our client's underwritings and remarketings o $2.6 Billion portfolio of California variable and auction rate financings remarketed each week or month o ZERO failed tax-exempt auctions and ZERO letter of credit draws and proven performance on aggressive variable rate re -sets in the past and currently challenging marketplace We have included a more detailed statement of qualifications in Tab I. A particular focus upon our variable rate remarketing efforts is shown to illustrate how our Los Angeles sales and trading desk consistently performs comparably or better than most of the Wall Street based firms. Further, we consistently outperform our regional competitors. Simply put, De La Rosa sets rates on our large and small variable rate remarketings at the best rates possible each week, every week. Of particular note, we have "been there" for our clients during the recent market turmoil — De La Rosa has rapidly deployed its capital and human resources to support our clients and their bond programs. Our large and growing California position and focus has been strategically used to help our clients find solutions and lower interest rates. Similarly, we have enhanced our position with California focused investors that have experienced deepening concerns about liquidity and credit. Every step of the way during these recent difficult months, with our issuer and investor clientele, we have provided every service possible to keep them informed, to provide solutions and, most of all, to execute upon the promises that have been made. In the table to the right, I have provided a comparison of a Diamond Bar Corcor. UBOC LOC backed transaction that we remarket for the City 3/26/08 2.21% 2.30% 2.00% of Corcoran (Kings County) on a weekly basis. The 4/2/08 1.89% 2.00% 1.700/c Corcoran bonds' remarketing is indicative of our week in, 4/9/08 1.80010 1.90% 1.60% week out performance. The Corcoran bonds have a slightly 4/16/08 2.10% 2.05% 1.80% higher par value amount, but do not have the type of 4/23/08 2.43% 2.45% 2.25% underlying rating (BBB+) that the City of Diamond Bar could 4130/08 2.6717o 2.6017o 2.4517c safely assume that it would secure (i.e. A category). On 5/7/08 2.33% 2.45% 2.10% average during the past 9 weeks, the Corcoran weekly 5/14/08 1.83% 1.90% 1.50% remarketing has been 29 bps below the City's 2002 Bonds' 5/21/08 0.00% 1.75% 1.40% weekly re sets. We believe that the City can achieve rates Average L92% 2.16% 1.9% similar to Corcoran by transferring its remarketing business Difference: 0.229% to De La Rosa. A change to De La Rosa would cost the City nothing, yet would yield not only lower rates, but better service and access from our California based banking and sales/trading desk professionals. Ms. Linda Magnuson May 26, 2008 Page 5 CONCLUSION As the banker that helped the City of Diamond Bar fund and construct its magnificent Community/Senior Center, I am very proud to report that your 2002 Bonds have greatly exceeded the original expectations. Not only is the Project a proud reminder of why I greatly enjoy the business that I work within, the financing is an example of completely matching the goals and objectives of a City to the right transaction structure. During the past 5 1/z years, the City has saved over $1.25 miIlion in interest payments. At anytime (with 30 days notice) the City can still decide to payoff this loan with its ample unrestricted general fund reserves. However, should it decide to continue with this financing program, we would encourage you to consider using De La Rosa as your remarketing agent. With a sales/trading desk that is less than one hour driving time from City Hall, I can promise you that you would have un -paralleled service and access to any and all members of our firm. If this is something that you would wish to evaluate further, we would be happy to provide references and additional materials such as staff reports and draft resolutions for your review. Again, I have greatly enjoyed the process and follow up associated with the City's 2002 Bond program. As always, I and other members of the firm, stand ready answer any questions on the enclosed materials or our firm. Should you have immediate questions please contact me at (415) 495-8865. Ecriven Sr Vice President C e� DE La Rosa & Co. I N V E S T M E N T B A N K E R S IU 1 Nlemtscm1ery Sti-C& Suite 2150 San Francisco. CA 04104 Tel. (415) 495-8863, Fax (415)495-8864 San Francisco II Los Angeles full-time employees focused exclusively on serving California municipal issuers o Major investment in Los Angeles -based Sales and Trading Desk strategically directed towards California-based and focused investors o The 2nd most active underwriter of California municipal bonds (2005-2007) o On average, we underwrite two to three negotiated offerings every week "Top Twos" California Municipal Bond Underwriter Committed California Based & Focused Firm Gfigroup De La Rosa & UBS Financial Goldman Sachs Morgan Slonley Co. Servs-s Inc & Co. ..," t. ...... ,,,,.,n.r................. ji„unnlul Crdi,J... irre pur•mrr.vii ?0liS-?Uqi o Los Angeles -based Sales and Trading Desk with a larger presence than almost all New York -based and regional firms o Proven ability and willingness to commit capital in support of our clients 0 Secondary Market Strength Monthly Volume of DLR Secondary Trading $1.000.nna,con -- — — — souo,nno,oua - -- --- S700,009,000 -- --— - - -- $sno,nnn.00n — — —_ — $400,000,000 - -- - —. _. --- -- - $300,90n.000 — — — -- — — I $zoo,two,M) --- — — Sn 5 S S S S S 6 S o We are active participants in the secondary market On average, our sales desk trades over $350 million in the secondary market each month 1)TGanson Financial: 2005-2007 Full Credit to Each o Larger California presence than most Wall Street -based firms and other regional firms o Underwriting volume comparable or exceeding that of other "major" or regional firms o Los Angeles -based underwriting desk exclusively focused on California municipal bonds 1 2 3 4 KI1*LH III 5 6 7 5 9 10 4 $58.9 $46.7 $45.6 $44.5 $43.1 $43.1 $42.3 $41.2 $35.3 $35.3 New York, New York Los Angeles New York New York New York New York New York San Francisco New York Oakland LA,SAC,SF LA, Sig LA, SAC, SF LA, SF SF LA, SF LA, SF LA, SD, SF LA, SF LA,OAK 26 1 17 34 13 1 14 15 12 25 19 11 New York, New York Los Angeles New York New York New York New York New York San Francisco New York Oakland 15 13 4 0 1 4 4 1 0 11 1 0 1 10 1)TGanson Financial: 2005-2007 Full Credit to Each o Larger California presence than most Wall Street -based firms and other regional firms o Underwriting volume comparable or exceeding that of other "major" or regional firms o Los Angeles -based underwriting desk exclusively focused on California municipal bonds �IL Scan Henry Vice /'re.siderl Edward De la Roca President o MS, Management, Yale University o BA, Political Science, UC San Diego 0 26 -years of public finance experience Holly vocal Vice Presiderl o MBA, Anderson o BA, Political School at UCLA Economy, UC c BS Accounting, USC Berkeley 0 10 -years or public u 4 -years of public finance expertise finance experience Raul Ainewria Principal u MBA, Anderson School at UCLA o BS Finance, USC 0 17 -years of public finance experience Guilleruro Garcia Vice /'resider! John Kiln Principal o BA, History, UC Berkeley u 9 -years or public finance experience r Michael Meyer A.s.sociale a MBA,. Stanford Grad. o BS, Management School of Business Science, UC San a MS, Civil Diego Engineering, Stanford o 3 -years of public o BS, Environment finance experience Geochenustry, Stanford 0 6 -years of public finance experience Ralph Hohnes Principal o MBA, Thunderbird School of Intl. Management. o BA, Latin. American Studies, UCLA 0 9 -years or public finance experience 1 4 `1 y'. Erilt Chavez Associate o MBA, University of Chicago Graduate School of Business o IIA, Economics and Sociology, UCLA u 3 -years of investrnent banking experience ['I Dr. Fernando Guerra .Sr. Vice President o NO, MA Univ, of Michigan o BA, USC 0 17 -years of public finance related experience Aileen Gonzalez A.csociafe u BA, Philosophy, Loyola Marymount 0 3 -years of public finance experience Sr. Vice Presideal o MBA, Haas School of Business at UC Berkeley o BS, Urban land Econ./ Finance, UC Berkeley 0 16 -years of public finance experience Seth Taft Analyst o BA, Political Science, Vassar College u 2 -year of public finance experience J Melanie Barrell Arral vsl o BA, Political Economy, UC Berkeley 0 1 -year of public finance experience Benjamin Stern Principal Dear! Undeneriter o MBA, Anderson School at UCLA o BS, Electrical Engineering, UCLA 0 17 -years of California Underwriting experience r Steven Cosner .Senior Vice President Irstitutianal Salcs- Jane Alesaader Director Alunicipal Ilond Sales o Attended both the University of South Carolina and East Tennessee Slate University 0 25 -years of California institutional bond sales experience John Moynihan Senior Vice. President Imslitdional Sales James Woolley Senior Tice !resident Institutional Sales o Attended both Pacific Union College and [lie University of California, Davis q 25 -years of California institutional bond sales experience f� a rem . dAI Omar Dallari Dirertor Table Fired Learn, Neal Mathisen .Senior Vice President Institutional Sales o BS, Political Science, UCLA 0 14 -years of California institutional bond sales experience Forrest Kontonnitras Director Structured Products Joseph tee, CrA Vice President Institutional Trading o BS, Management Science, UCSD 0 5 -years of trading experience Scone Carter Senior Vire Presolmf 7axahle hired Income l3llen Cheung A.csislant Vice President Institutional Trading a BS, Management Science, UCSD 0 4 -years of California remarketing experience Jonathan Worley Senior Vice President lnslltational Trading c. BA, Journalism, Uaiversily of o BA, !Business Administration, o BS, hinance, Georgia Southern o BA, Finance and Economics, o BS, Finance and Marketing, o BS, Business Administration, Kansas Boston College and Salem State University Samford University University of Denver University of Southern 0 20 -years of California College u 15 -years of taxable fixed o 15 -years of taxable fixed n 21 -years of experience in California institutional [)and sales o 24 -years of California income sales and trading incume sales and trading institutional sales o 20 -years taxable fixed income experience institutional bond sales experience experience sales and trading experience experience o DLR currently serves as remarketing agent or broker-dealer on a portfolio of 78 California variable rate issuances totaling over $2.6 billion in par amount o In a market where failed auctions are the norm, DLR has not failed a tax-exempt ARS auction o Over past year, DLR has maintained low rates by regularly inventorying our clients' ARS/VRDB paper ® On average, we inventoried over $300 million of VRDB s/ARS every month o With respect to down -graded insurer backed 0 VRDBs, DLR has not forced a draw upon a liquidity facility, and we continue to set rates lower than our competitors 0 Los Angeles Convention Center Average Last 4 Weeks: 4.19% 4.13% 4.81% Average 2008 to Date: 3.71% 3.51% 4.2317o On average over the last four weeks, DLR has set lower reset rates than Bear Stearns for the LA Convention Center by 62 basis points During the recent tumultuous period, DLR has maintained aggressive rates for LA Convention Center Deixa Capital Credit Enhancement 1 01/02/08 2.95% 2.80% 2.98% 2 01/09/08 2.83%n 2.76% 2.92% 3 01/16/08 2.77% 2.70% 2.82% 4 01/23/08 3.00% 2.80% 3.75% 5 01/30/08 2.20% 2.20% 1.75% 6 02/06/08 2.10% 2.10% 3.25% 7 02/13/08 4.00% 2.25% 3.25% 8 02/20/08 4.00% 3.00% 4.50% 9 02/27/08 5.00% 3.50% 6.50% 10 03/05/08 5.00% 6.00%n 6.25%n 11 03/12/08 5.00% 6.00% 6.25% 12 03/19/08 5.00% 5.00% 5.50010 13 03/26/08 4.75% 5.00% 5.00% 14 04/02/08 4.00% 4.00% 4.50016 15 04/09/08 3.00% 2.50% 4.25% Average Last 4 Weeks: 4.19% 4.13% 4.81% Average 2008 to Date: 3.71% 3.51% 4.2317o On average over the last four weeks, DLR has set lower reset rates than Bear Stearns for the LA Convention Center by 62 basis points During the recent tumultuous period, DLR has maintained aggressive rates for LA Convention Center State of California Department of Water Resources Metropolitan Water District 1 01/02/08 2.92% 2.90% 2.98% 2.93% 1 01/02/08 2.90% 2.95% 2.92% 2.98% 2.93% 2 01/09/08 2.83% 2.88% 2.88% 2.90% 2 01/09/08 2.83% 2.85% 2.92% 2.88% 2.89% 3 01/16/08 2.77% 2.80% 2.88% 2.81% 3 01/16/08 2.77% 2.85% 2.74% 2.83% 2.80% 4 01/23/08 2.45% 2.38% 2.86%a 2.46% 4 01/23/08 2.35% 3.38% 2.62% 2.88% 2.45% 5 01/30/08 1.75% 1.75% 2.20% 1.93% 5 01/30/08 1.75% 3.70% 1.80% 2.20% 1.99% 6 02/06/08 1.45% 1.48% 1.50% 1.48% 6 02/06/08 1.45% 3.50% 1.45% 1.45% 1.57% 7 02/13/08 095% 1.03% 1.05% 1.01% 7 02/13/08 0.95% 3.25% 0.85% 1.00% 1.02% 8 02/20/08 2.30% 2.30% 2.05% 2.31% 8 02/20/08 2.20% 3.70% 1.95% 1.90% 2.37% 9 02/27/08 2.80% 3.16% 2.80% 2.88% 9 02/27/08 2.80% 5.00% 3.05% 2.75% 2.82% 10 03/05/08 2.58% 2.58% 3.05% 2.58% 10 03/05/08 2.58% 5.25% 2.57% 3.00% 2.57% 11 03/12/08 2.50% 2.58% 2.45% 2.56% 11 03/12/08 2.50% 9.00% 2.50% 2.45% 2.57% 12 03/19/08 1.95% 2.08% 1.95% 201% 12 03/19/08 1.90% 8.50% 1.85% 1.95% 2.02% Average Last 4 Weeks: 2.46% 2.60% 2.56% 2.51% Average Last 4 Weeks: 2.45% 6.94% 2.49% 2.54% 2.50% Average 2008 to Date: 2.27% 2,33% 2.39% 2.32% Average 2008 to Date: 2.25% 4.49% 2.27% 2.36% 2.33% o Over the last year, DLR has set the lowest o Over the last year, DLR has set the lowest reset rates for the DWR reset rates for the MWD o During the recent tumultuous period, DLR o During the recent tumultuous period, DLR has set the lowest reset rates for the DWR has maintained aggressive reset rates for MWD San Francisco Airport o Over the last year, DLR has set aggressive reset rates for San Francisco Airport as one of the two leading remarketing agents o During the recent tumultuous period, DLR has maintained the low reset rates for San Francisco Airport as one of the two leading remarketing agents East Bay Municipal Utility District XL Capital Insured 3.05% 1 XL Capital Credit Enhancement 2.95% 2.94% 2.82% 3.10% Underlying Rating: A 01/09/08 1 01/02/08 3.05% 3.12% 3.09% 3.00% 2.95% 3.0617o 2 01/09/08 3.07% 3.12% 2.98% 2.95% 2.95% 2.96% 3 01/16/08 2.93% 2.98% 2.91% 2.85% 2.8017. 2.91% 4 01/23/08 3.20% 2.95% 3.50% 3.40% 3.25% 3.21% 5 01/30/08 4.50% 3.10% 3.05% 4.25% 6.10% 7.00% 6 02/06/08 6.10% 3.35% 4.00% 4.50% 6.10% 7.001/o 7 02/13/08 6.10% 4.35% 6.00110 6.00% 7.00% 6.00% 8 02/20/08 6.10% 5.35% 8.00% 7.00% 7.00% 6.00%n 9 02/27/08 6.10% 6.10% 7-75% 8.60% 7.00% 6.00% 1U 03/05/08 6.00% 6.10% 8.25% 8.25% 7.00% 6.00% i l 03/12/08 6.00% 5.85% 8.50% 3.25% 7.00% 7.75% -age Last Wecks: 6.06% 5.55% 7.70% 7.62% 7.00% 6.35% 'age 2008 to Date: 4.83% 4.22% 5.28% 5.37% 5.38% 5.26% o Over the last year, DLR has set aggressive reset rates for San Francisco Airport as one of the two leading remarketing agents o During the recent tumultuous period, DLR has maintained the low reset rates for San Francisco Airport as one of the two leading remarketing agents East Bay Municipal Utility District XL Capital Insured 3.05% 1 01/02/08 2.95% 2.94% 2.82% 3.10% 3.01% 2 01/09/08 2.88% 2.90% 2.78% 2.98% 2.93% 3 01/16/08 2.80% 2.81% 2.69% 2.80% 2.58% 4 01/23/08 2.45% 2.46% 3.6596 3.13% 3.92% 5 01/30/08 4.00% 3.27% 2.30% 3.80% 5.25% 6 02/06/08 4.00% 4.60% 3.00% 5.07% 7,00% 7 02/13/08 4.00% 7.00% 4.50% 4.00% 8.00% 8 02/20/08 4.00% 8.50% 5.50% 6.83% 7.00% 9 02/27/08 7.00% 7.00% 5.75% 10.86% 9.00% 10 03/05/08 7.00% 9.00% 6.00% 7.85% 9.00% 11 03/12/08 7.00% 9.00% 6.00% 7.85% 8,00% Average Last 4Weeks: 6.25% 8.38% 5.81% 8.35% 5.52% Average 2008 to Date: 4.37% 5.41% 4.09% 5.30% o Over the last year, DLR has set the lowest reset rates for the East Bay MUD as one of the two leading remarketing agents o During the recent tumultuous period, DLR has maintained the low reset rates for the East Bay MUD as one of the two leading remarketing agents and County of San Francisco - Moscone Center City and County of San Francisco - Laguna Honda !Average Last 4 Weeks: 5.00% 7.00% 4.73% (Average 2008 to Date: 3.46% 4.40% 3.75% o Over the last year, DLR has set the lowest reset rates for San Francisco o During the recent tumultuous period, DLR has set the lowest reset rates for San Francisco by 62 !basis points on average LAverage Last 4 Weeks: 5.00% 4.73% 5.75% I Average 2008 to Date: 3.33% 3.69% 3.93% o Over the last year, DLR has set the lowest reset rates for San Francisco o During the recent tumultuous period, DLR has set the lowest reset rates for San Francisco by nearly 47 basis points on average Ambac Credit Enhancement MBIA Credit Enhancement No Underlying Rating Underlying Rating: Aa3/AA 1 01/02/08 2.90% 2.88% 2.80% 1 01/02/08 2.90% 2.80% 2.95% 2 01/09/08 2.83% 2.84% 2.80% 2 01/09/09 2.83% 2.80% 2.91% 3 01/16/08 2.77% 2.80% 2.70% 3 01/16/08 2.77% 2.70% 2.80% 4 01/23/08 2.45% 2.45% 3.35% 4 01/23/08 2.45% 2.50% 3.25% 5 01/30/08 2.20% 2.95% 3.35% 5 01/30/08 1.90% 3.35% 3.25% 6 02/06/08 2.10% 2.4317o 3.35% 6 02/06/08 2.10% 3.35% 3.50% 7 02/13/08 2.25% 2.50% 3.35% 7 02/13/08 2.25% 3.35% 2.75% 8 02/20/08 4.00% 6.00% 4.35% 8 02/20/08 2.75% 4.35% 2.75% 9 02/27/08 5.00% 7.00% 5.10% 9 02/27/08 5.00% 5.10% 6.00% 10 03/05/08 5.00% 7.00% 5.10% 10 03/05/08 5.00% 5.10% 6.00% 11 03/12/08 5.00% 7.00% 4.85% 11 03/12/08 5.00% 4.85% 6.00% 12 03/19/08 5.00% 7.00% 3.85% 12 03/19/08 5.00% 3.85% 5.00% !Average Last 4 Weeks: 5.00% 7.00% 4.73% (Average 2008 to Date: 3.46% 4.40% 3.75% o Over the last year, DLR has set the lowest reset rates for San Francisco o During the recent tumultuous period, DLR has set the lowest reset rates for San Francisco by 62 !basis points on average LAverage Last 4 Weeks: 5.00% 4.73% 5.75% I Average 2008 to Date: 3.33% 3.69% 3.93% o Over the last year, DLR has set the lowest reset rates for San Francisco o During the recent tumultuous period, DLR has set the lowest reset rates for San Francisco by nearly 47 basis points on average R C S D S�1 bl IVEILSIDr o Last Bay Municipal Utility District: DLR's remarketing performance on the XL -insured issue earned DLR a $134 million bond reallocation from several large NY -based firms. DLR's new allocation priced 03/19/08 and totals $241 million, or 20% of the program. o Los Angeles Department of Water and Power: DLR's strong performance on the Department's ARS and VRDBs resulted in DLR assuming $100 million auction rate securities from Merrill Lynch. o Sacramento Sanitation District: DLR's strong performance on the ARS during the turbulent Q of 2008, as well as our performance since inception, resulted in the District selecting DLR to serve as its underwriter and remarketing agent for $100 million of ARS Bonds. o City of Riverside: DLR's strong performance resulted in a 25% allocation of the City's proposed $400 million Electric Revenue Bonds. o San Dieguito USD: Morgan Stanley had failed on $90 million of San Dieguito's ARS for approximately 2 months causing the rate to go up to 12%. DLR took over the auction on April 9th and cleared a rate of 4.50%, saving San Dieguito approximately $129,808 during the first week. o City of Corcoran: DLR refunded the City's 2005 COP, XL Insured auction rate securities with weekly variable rate mode bonds. Throughout the execution process DLR supported the City's bonds to prevent a failed auction. DLR's quick action enabled the City to be one of the 1st California issuers to restructure its ARS into VRDBs, resulting in a very attractive LOC rate (37.5bps) from Union Bank of California. DLR helped rate -payers save tens of thousands of dollars. o $178 billion of California Municipal Bonds -: underwritten o $5.8 billion as lead underwriter since 2000 o $350 million monthly average volume of secondary market trading activity BCnjainin Stern Principal o Manages $2.6 billion variable rate bond portfolio o Manages 13 person sales and trading desk Jane Alexander Director, Municipal Bond Sales Retail Performance: o De La Rosa & Co. typically sells a majority of the retail maturities (i.e. first 10 years) during a retail order period DLR's Senior Retail Performance: o As senior manager for two recent City of Los Angeles offerings, De La Rosa & Co. placed 85% and 78% of all retail orders on financings respectively DLR's Co -Manager Retail Performance: o On the recent $1 billion LAUSD transaction, De La Rosa & Co. entered 25% of all retail orders as a co -manager City of Los Angeles (2007) LADWP (2007) City of Los Angeles (2006) MWD GO's (2005) 0% Retail Performance on Serial Maturities City of Los Angeles (2007) LADWP (2007) State of California (2006) City of Los Angeles (2006) MWD GO's (2005) r 10% 20% 3U% 40% 50% 60% 711% 00% 90% 100% Recent Senior Managed Retail Performance - A DLR Relnil Orders „kph nt0oes. o With a network of more than 250 institutional investors, and a substantial retail presence, De La Rosa & Co., Inc. is able to consistently take advantage of the yield curve for our clients, producing a significant pricing advantage Serial Bonds Term Bonds U I W $448,595,000 Municipal Improvement Corporation of Los Angeles Lease Revenue Bonds Series 2006-A De La Rosa & Co. served as the senior manager De La Rosa & Co. entered $74.2 million retail orders during the retail order period, or 78% of all retail orders De La Rosa & Co. bifurcated and trifurcated multiple maturities to broaden the universe of investors, including trifurcating the $150 million 2036 term bond VI'1\ 1\:.It :FI'I A 6, 11rIN.11'111 I'NI .5' 111.11111111:111111.: Inil,�. 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A,,1—I Il-," IrmJ 1', .,I 1. n1L1 1111 he 11vIJ,q. :11111 l Ir 1�1.,1•I J.1. nrin:,l.II.,r,rl, 1. Li'. L: n -1..:.1r111,,.1,.:1. r. nvl 1111-1-1111 ,Irk F.Jn 11111l�.Ix,.rJI1•in l..I llv l: n, 11n.irlx ('.nl,e 111 h, 11•1-1r 11i-, !IIIIIIF1N-111 �.AN• I. ' I• r I/ I N- III 1. I N l I f: 1 11 1111,— 1111 A—..-, 1 11 11 I k 11 I_ .. F n •: H. -I, -I 1. ,.i 1: 1 1 l l..r_ , Il(: 1111. 4-1,1-1-1-11 11—�l r'7] 11)1 1,.11,111,\;:1!. Sila:rlt'I ILIt,I,,D:IHIISit 'i \ CIL.I.I.I• LI.I1)IAN IIIIII1111(1119 ,NII:Rltll.l, LI VMI l Cl,. I,ni.l N.,,-1,-,. - '11111, Bond Pricing Comparables: City of Los Angeles $448,595,000 Lease Revenue Bonds DE LA RosA & Co. INVESTMENT BANKERS $3159195+w000 J 1 Department of Water and Power of Los Angeles Power System Revenue Bonds 2005 Series A. Subseries A-2 o lie La Rosa & Co. served as the senior manager o We offered bifurcated maturities for differing investor preferences o We aggressively priced the bonds by underwriting $25 million NFW ISM;;.— FULL nnob.FNTRV ONLY UATmrs: fmurtd Serien A Beath, L'uldured S<rlee A Bonds Fliele"AAA" Fllchr -A& " Nfaody',c "Ann" Alondy'er "A.3" Slnndnrd & P,mn .,c "AAA" Slnndnrd & Pone,: "AA=' it, Nen "RATINGS, haul"'.) In the nprni.n ,.JOrritR flnrrngon d Sur:O I.Lp.. Bnnd C'nvnerl, Ferrvl I'mn an 1.&Nr,lnlna 1 un. rtpulmamn ry m" and "min d—on, onJ ettumml.. ar.rnng nrkn mm�n ll" oc"urvnp o/ rnNln rrprnrnrerlonr and ronrpflnrrrr wfh moat¢ rmrnn Ir. ha—, on h' ,t'nlr.r n Ihmdr it nuivdnf ( m R•mt lnnnrrn J r7idnul mit. a. purr•.uex rmdn Anfnn !n) e/ Thr la—I A Cad, of 1986 -IJ 1 rmpr (mm .Swse ,r/f.irltjirn/n prnrrnnl innrmr w,rr. l.r rhr ("'Thor spin .rn .../BrmJ C'nuuael. in r..n rhr Srnrr A Bend,, Ir nnl a .per (c M l nme orm / rpn.prrvr nfrFr /rJ+m7lndl.hhml ry rn•p.mre nlrnmrrl..�min/m ;m m.m. elrb,,,h Yn JCrnmal.rbteno rhnl aur)r Ir—I i, "':ludo/ rn Ad,,,,- ru ruminR• ^'hrn rnh„fnrl.rR r"r,xrryrr .drmrnriry m "'rum remAlr rmm�rr Rnnd hoar( rm my •rgordlnq on ulhv m�lryue rrn r'I ama m rhr nvnmhlp n• Jr.•M'nsivn r f.. rhr n:nuvl or nrell's J imm�r .rn, rhr .Srnrn A BnnJ,nSrr "Trl.l" AIA/IRI1J- "I herrin $932,090,000 (Department of Water and Power of the City of Los Angeles Power System Revenue Bonds, 2005 Series A \n 3 consisting of -L� S616,11".000 sJlc,t9s,01W Sub+¢ries A-1 S.A.dn A-2 Dided: D.. of DO .`7 Bum Ldy 1, im .hmm n. N.M. fmn, mmr y'Ait mrr peg<.vmnfm Trot/"' lnJormmllonfw Frnrml m/rrcnrr nnlr. lfllnmimrndN rn hrnsumma�• jrhr rnrWn ortm.r•rJrMr:.rvr. Inrvt nJrOeJ rn mrd +hr n r n• OJT, inf . I r ro Froin infmnralinn rrtmrinl m IAT mnhivq nl nn igPormM Inrnrmrnr dMdt�n. Cepir.IL-rd rrrnu -d m "i.,mr•rrrJw, nor mhrmvrrd rA,d thnll he,, rhr imno b'u M/nnN hrrtin. I It. uM.e-aapsioned Fond. lura 'Serltc A n.ndi') am heinp I—— M'the to moria of \gam mJ Nm of the City of Lm .Aioclll ('he "Dcpmtr mei -1 t Wovid' Ilmdt ncoes*"y' r"Y Gntt of Crrpilul Imm�,amnerns lu ILe PC— Sytom and to pay certain —1, hf /.(..rote of Ibe Smie, A nonrls. See "AI'YLI CATION OF PROC'FFUS." Ili Serio A float will be I. d in 'An 5nh.erk...,cr f rth ab (tach, a eSCbmd..' nod, rerpetd.eh'. Ilre "Ruhrria A-1 Bondi' anJ the "SYbsedes A-2 bunds' I. l liesSeriet A Band, arc being i„unl in fully mpitkrcd farm and, when iomM, will he m9itleml in Iha "AMC 11 Cele A Cc - .s ncmince 'XI fic Uepvthnry "Iry Cnmpnny, New fork, lir- YmF ("DTC,"). UTC will mit ne "'¢aurin. dep .0b,,r rna the Serie. A Band,. Individual port haus of hiatal£ in each Sah£me£ of the Serio A Runds -11 be mode in Mvk,,Im frim only, in the pLi'l emoum of ES nlllf m env inlrpral multiple Ibemaf. pumhmen of meh Imerc.n all/ nn: retci.v.......... n1�.cndnp Their Inares,n In rhe Carie. A Rnnd, purcb:aed. Inmral nn Creh SCinerirs of the Stria A Rnnd£ n pa hie nn /"'"'Cory I and July I of each year, cammencinp July I. ]OOb. Pmripd. rail. and pmmium, it nnY- arc n:ryuhle ditallY 1. DTC by Ilse lyeaturer of Iht Clif of Los Anpcin, n Ntal aprnc Vpan receipt of such pa.menn. (f7(. h ub1iRCIrJ in tum to mrtil such InymenlI In the pl C fh,'-pont. fi iuhminenr rli,hunrmrcnr ra Ne Ilrncncini V.'.,s yr the Sarin A Mede, tt deadhd hemin. See "AI'PBN UIX E—UTC BUUK-EN 1 RA' Sl"5 fI:M:' Tat Still, A Bonen a -hjrcl In rtdemptien ydur Iv mnluriy..Cc, "IIIL' SFBjFS A RUNDS—Opliunel Redentplion' xnd — M1lundannt R,d mpriurr.'- r The whN.IeJ ymrnl of prinnlul of nn,l inrcrtn nn Ilse Innrrred Srriee A Rnnd, (oc defined hel,rw) -hm dre will he pn-r - l by n tdcipal l+n d i .net policy far the htsnr<J Snin A Onnut Isbe"I.nrr:rna Polity'I m I<unnJ or,rmrrrtmly -:th rh<Ael:xeD nr rhr Inorred sees A Ikmdt by Financial Security Asumnee Inc. f Om-fi it Inmrer"). Tire srdrwiia, AA Fb I, a.mvnng m, lay 1, 1.AMend Inly I. n. A will nm he Cunanreed under rhe In.umnce I'vllq unJ art CNleclitly rtfertd r. htmin as Ilra "Unimv'vl Scrip n nonrh." .\II or dm Sedan A RunJa mhtr drur Jrt Clnin,u.aJ Cadet A Ron), vlll by aunnrnreed under rhe In+rrrnaty P,diry nrr.l a.e ..Pubr:.ely rderreJ w IreraVn cadre "Irr.umd Serics A Hnd,-See "IIUND INSURANCI'." oil "AI'I'I:NUIX fl—SYF:I:I SIEN 1NS'URANCE PULICV 7 he Cerfat, BOM. will be tpnhl .bligarien, d Ibe Utprr r 1 p gable only rum rirt 111 a Hamra Fund.eed not oe,r of any elhor fond c of In U<purtmeM. ar rhe Cir, of Let ArrpelnFdn A MM+will nnl enrwRme m midenee on IMehlydnett of lbe CII mnnon rrrtlurg<on City,mpm,aram Rcnnnlrtmnuet of Ilra Cly. NNlbe.the—hand amdir nor rhe radnRInner or Ih. CMJ 1. nI.deA to the p.,mmt of the Bata A Bond, SF.F, afATURrrV SCIIEBULF. V.N INSIDE FRONT C'nt'rR 16n Sena A Bend, arc ogeml -lien, w, and if ;muni and tcmi.cd by th, e Undc"im nobje to dre tfgmvul ed /¢polity by Ursitk. Ile,rin,ma R SomliRc LLP, Bond Coumtl, mJ to Ceram”' mh,r cundhlmo. C"Min Itpl maum x.111 M parsed upon for rhe Ciry and the U Aii men/ by We Gtntral Cenmel for Wuter aM 1'awer. Cenwn Icpnl mxn<m vitt F )ntacJ upon for rhe Dep+. r by pill,hu'Y Winthnm Sha-Pillnren LLP. Uialmurt CA -1 le Om i, Carom Icpel mmren wfll be At open Tor the VMcc-drera by Sidlry Aunin B_ & W_1 LLp, Undcmrilen' Counsel, it i. C.fcctrtl rhos dm SCim, A Mtn& in d<bnbl a fn— -ill Fe arailehk for delivery thmrrph the facilumt .1 U IC nn or.M , [-,.be, 3B. 1U05. F616,R9F.BBn S.baenra A-1 Bondi Goldman, Sachs & Co, Jt.Morgnn MefTill Lynch & Co. E J. De to Raw 6 Co.. Ina Lehman Bmihem Siebert RfaadFofd Shank & Co.. LLC FJLs.19 E. J. De h Rasa & Co., I.- B Snbte.io A-7" Bonds Gnldmain, Sochs & Co. JPMnrgnn Sh.nk & "I m.n Bml6cra Merrill Lynch & in. Sichen Brandf-il IhnN: Ikcenrlrtr 1l. 2013 Size Issuer Type Due Call Features Rating Enhanced Credit Senior Manager Sale Date $315,195,000 Los Angeles Wtr & Pwr-A-2 Revenue 7/1 2015 9100 AAA/AAA/AAA FSA De La Rosa & Co. 12/12/05 $368,600,000 Colton Joint USD Go Ult 2/1 2015 @ 100 AAA/AAA FGIC RSC Capital Markets 12/12/05 Maturity Coupon Yield Yield to Maturity Coupon Yield Yield to Maturity 2020 4.750% 4.280% 4.408% 5.250% 4.230% 4.513% 2021 5.250% 4.260% 4.567% 2022 5.000% 4.250% 4.497% 5.250% 4.290% 4.615% 2023 5.000% 4.280% 4.535% 5.250% 4.320% 4.658% 2024 5.000% 4.310% 4.570% 2025 4.750% 4.502% 4.601% 5.250% 4.350% 4.715% 2025 5.000% 4.340% 4.601% 2026 5.000% 4.370% 4.631% 2026 4.750% 4.550% 4.633% 2027 4.750% 4.580% 4.654% 5.250% 4.380% 4.762% 2028 4.750% 4.620% 4.678% 2029 4.500% 4.710% 4.710% 2029 5.000% 4.470% 4.712% 2030 4.750% 4.710% 4.729% COLOR KEY: Yellow indicates yields higher than LA DWP's for the comparable maturity Blue indicates yields lower than LA DWP's for the comparable maturity $47,710,000 Anaheim Public Financing Authority Sewer Revenue Bonds, Series 2007 o De La Rosa & Co. served as the sole -senior manager o DLR structured the financing to maximize the amount of proceeds the City received, given certain debt service constraints o To support our aggressive scale, De La Rosa & Co. underwrote $7.3 million in unsold bonds, or 15% of the total par amount o De La Rosa & Co. was able to achieve an All -In True Interest Cost of 4.53 % for the Series 2007 bonds NI".11 IVSII I:�Ii.I.I.IItarllI:Niill. 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Par Sale Date Issuer Rating Insurer Underlying Call Date Underwriter $47,7111,000 May 10, 2007 City of Anaheim Sewer Revenue Bonds Series 2007 AAA / AAA AIBIA AA / AA- 2/1/2017 @ 100 De La Rasa & Co. $96,265,000 May 8, 2007 Orange County Sanitation. District Refunding Certificates of Participation, Series Z007A AAA/AAA MBIA Ana/AA/AA 2/1/2017 @ 100 J.P. Morgan Securities, Inc. $15,325,000 May 10, 2007 Reedley Public Financing Authority, Water Re7enue Bonds, Series 2007 AAA XLCA BBB+ 9/12017 (& 100 Brandis Tallman LLC htnludty Coupon Yield AIA/O 17,11 AAA (SHIP) Sprmd bpr (1TC) SpreadAfA1D bps (Yflf) Cnnpon Yield Y- AM (518) .Spread bpr, (PTC) Spread bps (YTM) Canpnn Veld MMD )7,W AAA (5/10) Spread bps (YTC) Spread bpt (YTM) 2007 2008 4.00% NRO 3.60% NA NA 4.00% 3.55% 3.60% -5 -5 2009 .00% 3.53% 3.60% -7 -7 4.00% 3.58% 3.60% -2 -2 2010 4.00% 3.55% 3.60% -5 -5 4.00% 3.54% 3.59% -5 -5 4.00% 3.62% 3.60% 2 2 2011 4.00%1 3.57% 3.60% -3 1 -3 1 4.00% 3.57% 3.59% -2 -2 4.00% 3.65% 3.60% 5 5 2012 5.00% 3.60% 3.61% -1 -1 4.00% 3.60% 3.60% 0 0 4.00% 3.68% 3.61% 7 7 2013 4.50% 3.63% 3.63% 0 0 4.00% 3.64% 3.62% 2 2 4.00% 3.74% 3.63% 11 11 2014 4.00% 3.6 % 3.65% 0 5 .Ou% 3.68%0 3.64% 4 4 -4.0017. 3.80 0 3.653'a 15 15 2015 5.00% 3.72% 3.67% 5 5 4OD% 3.73% 3.66% 7 7 4.00% 3.85% 3.67% 18 18 2016 ADO% 3.77% 3.70% 7 7 4.00% 3.79% 3.69% 10 10 4.00% 3.90% 3.70% 20 20 2017 5.00% 3.80% 3.74% 6 6 4.00% 3.85% 3.73% 12 12 4.00% 4.00% 3.74% 26 26 2018 4.50% 3.91% 3.95% 3.79% 12 16 4.00% 3.94% 3.95% 3.78% 16 17 4.00% 4.10% 3.79% 31 31 2019 3.88% 4.04% 3.83% 2l 21 4.00% 4.03% 3.82% 21 21 4.13% 4.20% 3.83% 37 37 2019 0% 3.97% 4.04% 3.83% 14 21 4.03% 3.82% 21 21 3 a 4.20% 3.83% 37 37 2020 4.00% 4.12% 3.87% 25 25 4.00% 4.12% 3.86% 26 26 4.13% 4.25% 3.87% 38 38 202D 4,75% 3.98% 4.12% 3.87% 11 25 4.00% 4.12% 3.86% 26 26 4.13% 4.25% 3.87% 38 38 2021 5.0D% 4.00% 4.23% 3.90% 10 33 4.13% 4.20% 3.89% 31 31 4.25% 4.30% 3.90% 40 40 2022 5.00%0 4.03% 4.29% 3.93% 10 36 4.20% 4.28% 3.92% 36 36 4.25% 1 4.35% 3.93% 42 42 2023 5.00% 4.06% 4.34% 3.96% 10 38 4.25% 4.367o 3.95%n 41 114.30% 4.40% 1 3.96% 44 44 2024 5.00% 4,09% 4.39% 3.99% 10 40 4.30% 4.41% 1 3.98% 43 43 4.38% 4.45% 3.99% 46 46 2025 4.25% 4.42% 4.01% 41 41 14.35% 4.431/o 4.00% 43 43 2026 4.25% 4.45% 4.02% 43 43 4.38% 4 X14% 4.01% 43 43 2027 4.25% 4.47% 4.03% 44 44 4.50% 4.457. 4.47% 4.02% 43 45 4.38% 4.54% 4.03% 51 51 2028 4.509l, NRC) 4.03% NA NA 2029 4.50% 4.47% 4.48% 4.04% 43 44 2030 4.50% 4.487o 4.49% 4.05% 43 44 2032 4.38% 4.59%=4.100% 51 51 2033 4.75% 435% 4.54% ID8% 27 46 2037 4.50% 4.65% 55 55 2039 4.75% 4.4070 4.59% 4.IO% 30 49 COLOR ICEY: Yellow indicates yields higher for the comparable maturity Blue indicates yields lower for the comparable maturity on N x $3596709000 Beverly Hills PFA 2007 water Revenue Bonds De La Rosa & Co. served as the senior manager De La Rosa & Co. was able to price the uninsured Beverly Hill's bonds better than another manager was able to price a similar insured issue Additionally, De La Rosa & Co. was able to structure a 6 -year call feature N'EWMrLE rML8006-EMMY RA11N09, NltwdnniFPoot'c ",9AA' M -OF". Al 1" See ^Ralingti' fn Inr op:, n J1n3, A Pn:Fae nnl iam eorporadian, Snn Frn,riT. Caitfrn. o, 8and Cduner1. snbja:, hrvrrvrr ro renin 9331; JlmHvne d,eM hem,, undrr uianng lain, fnr fnrrrc:r o, tht Ma: Sends fa-,ivdrd ",,. Rmee inmate. far fr -1 - mopos[annd euM innreer:s nor on item v(ms pr.)nenre �irpmpwo of rhe fedamf drrrnatirx minimum mr imvorMoy ind: uidyvfE vn.0 mr7:mnr'on vifhvagh forrl.�pnrpvsr of eoorpaHng tll<RfKmahtt mininlam m+:impv�H v, tTYn rarpervn urn inrtmr it mA±, into eeeouri: in deltaminln2 c±rrmn :nromr mrd ra».Sopa. lrt rh r j.rhtr aPmian o/doral Cbunae7, auah in.Yrm ro nrmpt from Cblijornta prnorai i,mmc rrrrca. S.r •TASMArrERS. • 335,495.000 CITY OF BLN EFLS HILLS PUBLIC FLM1A,-4CINU AUTHORITY 2007 W ter P--. Bond, Dated• Dntonf D-1 'F Pull Jtur• 1. oar .— Ina le <aa dnlhorih' N f fyn T b u mPSn rd ,-l.. ',t6r '2LOY B ai ve heirs iwuv3 6T e6e Cil e[ B -re 1- HBIa Public FienanaaAuElare, +r<'Ankl, 2-' .l•-+-<' 1 ?:Pt,dh d,e Beard efDireeM;. efthe Aae6mq•n„Jnmru--9 oPl,rmd •n L.drnM:v .! T.,,.l, doted v.. v! Jvw•rr 1 = - thr : � � ker-:en Ehr A„UvdEy �d L' 3. HraL- Aiatiadi Aeaeietiw. -e t_ h. 2007 M -d. :0 -'Tr.,-.,, 938.300.000. Pee "FRE 200 i BONDS- A�.�nrc�.- ra ' .v -n-, Vn-,dl. ” 6.�i: , _ _ - _ .d. ,.d: - •r? -. _,tn.A mpre.�mr„6, t� yh. mmm�P•I at-ryri,e m -end 3 --fed b. -f �� { -L, f - F, ,ed:eeen eren,g• and a- vF r, 4: • __ t. e paler rtht "Winter [:,-r: r,..•-. 'u t•^. �'- - �•.,�• •-'�en' fv: , h-'� .` � 6:-+,, r_n^ :� p,. � I„ ,-.b .f iv.mny the 5007 Scud. 0e- r INANCLNG FW1 - vv 'Re,eenf.o- , I'll rA I H9amf n.i• :. i C' R,- ?. - r- - I :. d L. e f Pkdee =rad Ee. -4, 1 l6 -e. r-_ d. -r 3:. -ed. rs - .-- 1. 2907. b; -At-6m Cig ndthe Ae -.... •::; Fria. el:n,:-R... l..--nr,.e Ic .�e_r. -erf- --i-. kTftr G]tF ander ehe l,uenllmevt Snlr Ar. •nt : Ir.-ltmr R--, - - --h'- •, - 'Itm F.- . .- -f the W— E -Wive. -ahieh ge.nnnik " B a'OPrreina �md $ T=e 2 07 -k e,. -1 ,-,:..1 6,. _-,. 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M. eondem , pr�r ,!- err•i,n +�A.tnr,-rnt;rne n•1 -mil i,. , I r rn I" mnl,vit, 'TIiE 200, HONDS - Aederry,liee�'t^ NEEIHEA T-nZ 2007 BONG- N I -E Im U -A; WN I F T:�=- `TP '7.' L' PV'-RINCIPAL OF OR Ih7ER19 THEAEGN. NOF TRE OPL[C.A"R^` - - I - Kkzti T- [N':TA'! U=;? PAiMENT9, 0bN5=ITE A DEBT OR A LIABILEIT OF THE AUTHORITY. 7TiE C� T:- ,-1IE �.,F '.:ti3FOttItiA OR ANF OF FES POLFFICAL 34HDStlatON8 I ITMIN THE MEANeT'C O=ANT CO N3CFt-JTIONAL LIMF[ATION ON DME3TEDNRM% OR A PLFDGE OFTTa FULL FA31 H AN'D ORESTIT OT THF.fTTT ee--1-� M07 BONUS ARE MMIKK--D 30LELF BY THE PLEDGE OF REVENUES AI -D CENFAiN T UNDOfiEidJ ilN•DEF. THfi,: ZE: T'JIL. TRE 2007 BOI.ZO AR_ NOT g9rLAED BY A PLEECE OFTM TAUNG FOn-" OF THE CI= ]4-1 MTTFSCRFDULE rape Inniae rnorPl TRIS COVER PAOECON7AINS CERTAIN INFORMATION POR QU[CE REFERENCE ONLY. IIIA NOTASU3Lil.'tRiOF I••H9 I3^,`JE OF BOND_ l:.-C'E."TORJ M=Ri_AD Ti -6'M-EIRE Ora IJI RTAT---�IENT TO OBTAIN nWOAALITION EME.h"[1AL TO THE\ UN•cFA,V INTOMSED iN`."EJ'Chir..T 13ECMON WMA RRf CTTO THE PLRC[iARR OFT.[E 200" BONDS b"R. w6jree fe the q.prreel .n MtheirI�Ii:yT 1,. 12n•, H,dl A F.de�-nen.,! L,-, Cvrnvc-.f:ee, :-� Tr.nee.a C.lifc-.n.• Pb..d v'2,�. 1 C•,c«n Mpvl mnHo.- EJ1 nlw b, Por -ed trp fvr fh- AnthmirF and rM Cit- 6y. Jar, H 1, A P.er,.oen,J L.x Cnrpernfias .. Di•deave, —A—AOerEA 1- C.li(W6 pa,aed apoe re t],t],,,Cie: Fr <b C- A,- 2nd f,,,. E6- irna•,e,ntvrn by F.,Osnphc : .-.,.o..l.; Y..4 P, Lw Ayel.a, mm:. i<= tori-ipv>ei th.r Ih, 2007 Bvndv m0 M d=:-rred in be_ mtrF ferm+I,nee6 the IvmL•ei¢ of llTC m yr a6vve ]aaw,rs 3l. 200. ff� AfI.L,IIit:;la,C',y. Bear. Steuns & CO. We Size Issue Type Due Call Features Credit Underlying Senior Manager Sale Date $35,670,000 2007 Beverly Hills PFA Water Revs 6/1 6/1/12 Ca 100 - AAA/AA+/Aal De La Rosa & Co. 1/18/2007 $206,035,000 Anaheim PFA Revenue Bonds 10/1 4/1/17 C0.' 100 AAA (MBIA) AA -/AA -/A1 Citigroup 1/18/2007 Size Issue Type Due Call Features Credit Underlying Senior Manager Sale Date Maturity Coupon Yieldto Call Yield to Maturity Coupon Yield to Cail Yield to Maturity Maturity 2010 4.000% 3.510% 4.000% 3.530% 2010 2011 4.000% 3.580% 2011 2012 4.000%n 3.620% 2012 2013 4.000% 3.690% 2013 2014 4.000% 3.750% 2014 2015 4.000%n 3.800% 2015 2016 3.700% 3.790% 4.000% 3.860% 2016 2017 3.750% 3.840% 4.000% 3.920% 3.920% 2017 2018 3.900% 3.960% 4.000% 3.96017b 3.960% 2018 2019 4.000% 4.050% 5.000% 3.970% 4.130% 2019 2020 4.100% 4.160% 5.000% 4.000% 4.200%r 2020 2021 4.125% 4.230% 5.000% 4.030% 4260%n 2021 2022 4.200% 4.290% 5.000% 4.0601k 4.3100/ 2022 2023 4.250% 4.340% 5.000% 4.0801/o 4.360%r 2023 2024 4.250% 4.375% 5.000% 4.100110 4.192% 2024 2025 4.250% 4.400% 2025 2025 4.375% 4.400% 5.000% 4.120% 4.42617, 1 2025 2026 4.250% 4.420% 2026 2026 4.400% 4.420% 2026 2027 4.250% 4.440% 2027 2027 4.400% 4.440% 4.750% 4.290% 4.4700/ 2027 2028 4.250% 4.450% 4.250% 4.460% 2028 2032 4.250%n 4.470%n 4.500% 4.480% 4.490%r 2032 2037 4.375% 4.500% 2037 2037 4.500% 4.500% 4.500% 4.510% 2037 COLOR KIiY: Yellow indicates yields higher than Beverly Hills for the comparable maturity Lt. blue indicates yields lower than Beverly Hills for the comparable maturity $64,705,000 The Metropolitan Water District of Southern California Waterworks General Obligation Refunding Bonds 2005 Series A o Ike La Rosa & Co. served as the senior manager o De La Rosa & Co. generated over $37.8 million of retail orders o We were able to sell over $23 million discount bonds in 2019-2021 to meet the clients refunding targets 11 MMI AB1Rm'analwAmrfxsQocrwacnnB,vQrAlrowdn NEW ISSUE R'11nRs` j}ulf Qoxk-F.ntR) FllcY M.W. -AW Sip -AAA' Se "R.Ihp." heel.. in the op/ni„ri.f Ilawkim Urfa((rreld & Mad l".. lit., Angrfrs. 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Se AW T7'eEQ.S"rhrnln. 364,705,000 THE METROPOLITAN WATER DIS FRICF OF SOUTHERN CALIFORNIA WATERWORKS GENERAL OBLIGATION REFUNDING BONDS, 2005 Serie. A Ualyd: D- of Ilelhery Dur. M1Lek 1, o eel faith M the ktdde amef hereof Thl, ever y.p• tanrain. Informai.n fm pneml r.remnca Onlyy. ImenlM" .e.d,0ed In reed the ..It. OMd.I St.].ntenl t. ohl.ln inrarm.tlon _ 1.1 to mNInR •n informed 1.re 1 do, r. The W.teroork, Ocneml Oblip.d.n Refunding B.Mr, 2005 Series A (rhe "2105 Series A Bantle_) err bdng imud try The Mewpnllmn Water Die1rI M,whem All" is ("Mmrap.Btan"1 p.mu:mt to the Ad (m defined herclnl. the spacial elttli.n held ,ha junaaivdan of Aterrop.li,an nn Jame 7, 1966 {rhe "M'11'n"). I(amlmion N.. 6954 adopted on May Y, 1961, and Reml.11on No. Rap. adopted .n Jnnumy 12, 19a5, n. amede.l nd supplemented. including by R—Niton No. 3901 adopted .n Ayprll 13, Rq4 (rvllenircly. Ih< "RssaluM1on:') The 2WS Senn A Bonds pit beteg ieu d for the P'_of refolding n podi.n of Me[mp.liton a andi gg pen 1 bOltn I W.d. which ,.ere i d ro 1-- r reRn.nee ,Le rnn'Irucliun, enp4Mmn and rch.bililatinn of filsmdnn 1rla u, di0rihuuvn laciu ies .nd In he, purge . Ih.rimd by the +mer, of Metevpnlil.x .t,he Eleelia. and fitutang a pardon of ire emit yr ivuana for rha 7105 Series A Pandr. 5^e "P I.AN OF REFUNDING." Th< 2005 Saris A Ponds will be da,d Iheir dme m delivery, ..d Hill lndurc I. the pdncipxl _-I. in Jit Years amt h., 'nlcn.l al the --ti- r.te, .r We_ per annum. all mac, Ivrlb .n the imide mer page he,eof. I."e 1 .n the 2f 05 Sede, A Bond, i, payable on m_', 1 and S.planher i .I nosh lour. rommvneinp un September I. ID05. The 2005 Fenm A B.nd, ate auhjer'1 m optional ndcmpd.n prior to maturity. See "U[SCRIPTION Op THE 200'0 SERI L5 A ,,ON US - Opri... I Rdemptinn." The 2005 Series A III.& sill he issued sa fully rtgimc d b,,nsh and. when iu d, will bx regl"rend in tm name of Cde & Cv., m 1 The Deyod,.ry Tmst C.mpnp. Ne. 1'arI, New York ("DTC"). DTC Itil ad n, xeurilia depvnary fm be 2005 Series A H,mdx. I.Jwidwl punhue' of the IntB Serie A &,ds will be mode in, bock-emR f.nn .n17, in prindlnl nmuunu of fS.WU any mnpr.l multiple ,hereof Purchor wtl nw naive mnificnla repp venus 2105 5 'e, A &r d p. hind �' Ihcm 1'rindp.l vr.ml imercn m the 2005 Sedc, A hued, silt be payable direeJy 1. DTC. as the rtgg,,etercJ m,m. of the 1005 Serie. A Ponds. Upl ripl .f paymanu of prineipel and ImensL U7C n uldtpatd ,u,nmil md� rrindpnl n d inlererl 1. the DL'C Tierpe t" (a"defied heeinl br snhseyucnl d'nhnrxment r. 1h< Oencficiel O„ner. Ins defied herein) of the 2005 Sed. A Bnds. Se< APPGh�DII(D - "BOOK -ENTRY -ONLY SY:STCM11:' Thr 2005 Seek, A Pr,d..n . Ra.enl nhltgMbn Indeblednas of Melmpnlllnn, p.y.hle a 1. hath pdndpd .M Iete,w fmm ad ..teem am which mar M IMd vltham Ilmiprlan ., b mss nr unn.m open .11 I.x.ble rl.I pr.penp In Ih¢ Juthd-wri.n a! Meunpoliun.nd which, under the t.w.e nm, In fmm, mit W le•ied wllhna111mll.11.n .B I. �le.r nrc.anl .p.n.11 Inshk prnmml PeP•,ty camrl mrt•In closes d,arc•r, rn rhe fmhdldI., yr Mel.pent�n. The 21.15 Sede" A Banda ue pnS.Me .n godly wllh the btodMg Rade (., drn.d hemi.) .f Melrop•If1vn. Aa ^f Mnmh 1, 211115, Meenp•limn had ..blmii.R sR11kiYB.Ig10 eRp lr Ad1ptI .mount of Rs PonJv, including do ReGndd B.xdr las de8nd heroin), pgahl< on p.dry with the I.115 Sada A dirlon 1 rd.nding bona. nay ha 1„ued in the fulvrc ¢v pully wbh the 2015 C•d. A B¢nd..a de"Mhrd Penin. 5re "SECURITY FOR AND SOURCES 01" I'AS'M1iF.NT FOR THE 2005 Seri. A BONDS." SEE MATURITY SCHEDULE ON INSIDE FRONT COYER The 265'i5 Sen. n &nd, an //-d were.. and if inn d .nd _i, Id by A, (Jnder.nit— ,uhjrut m aPP_d f regahty h) tr".kfn., 1"I./idd 3 IV,nd ISP. Las Argdn. xnd The I ..Of/t— n/Manll'x 1.. Gama, L. AngAe. C 11A-im 0r•8md Coven! e. Ate— ufnnn. Cram„ fepvf .m.rrr "dd hr prssrd I'— fr, hlr,wnrnhmn hl' tr, Grnrml C rmnl Cennfn Irpel mover, will be p ed qM f., the Undrrwrirrn Dy fuser --I, tet.- Prv6.dr LIP Pahllr Fiwf l Ma—panrmr. ler.. PhflndrlPAN. /'mnnfsunla, i, ,ming u' F!n ,W Ad,- ru htrhvpnlir.n !n mnnrclMn vdrh rhr i.-„ of the 2143 Sr.:er A Q.ndr. hie I,tn d rho, k, 2f.II.Sr it Qnnda will be mniht6lr fpr ielJ,,,y Ihrn #rte fatll!lirr .f 117r nn x, nh.m Apol A, IC05 E. ,I. De LB Rosa & Co., Inc. Be.” Steams & Co. Inc. CIDRroup E,I.d. HInoj^ &Company "..do... C.pitul P.noer" ILC J.,Mrin See.dlh, L..p C.pllnl M.ekeia, LLC Merrill Lynch & Co. Mora- S1.A., R..I.. & Co" Int, Siebert Brand(ord Shagk & Co., LLC UOS Fiew.d.1 Semites In, Match 16.2005 Size Issuer Type Due Call features Rating Enhanced Credit Senior Manager Sale Date 30 Year CA MMD $64,705,000 Met Wtr Dist Wtrwks GO Ult 3/1 2015 @ 100 AAA/AAA/AAA - De La Rosa & Co. 03/16/05 4.63% $164,935,000 North Orange County College Go Ult 8/1 2015 @ 100 AAA/AAA MBIA UBS Financial Services 03/15/05 4.64% Maturity Coupon Yield to Call Yield to Maturity Coupon Yield to Call Yield to Maturity 2006 3.000% 2.20% 3.000% 2.42% 2007 3.000% 2.59% 2008 4.500% 2.80% 2009 3.250% 2.95% 2010 5.000% 3.10% 2011 5.000% 3.29% 2012 4.500% 3.47% 4.000% 3.52%n 2013 5.000% 3.65% 2014 5.000% 3.68% 5.000% 3.77% 2015 5.000% 3.81% 5.000% 3.90% 2016 5.000% 3.94% 4.02% 5.000% 4.02% 4.09% 2017 5.000% 4.00% 4.13% 5.000% 4.11% 4.22% 2018 5.000% 4.06% 4.23% 5.000% 4.16% 4.31% 2019 4.125% 4.30% 5.000% 4.20% 4.37%r, 2020 4.250% 4.35% 5.000% 4.44% 2021 4.200% 4.40% 5.000% .4.25% 4.29% 4.49%n COLOR KEY: Yellow indicates yields higher than MWD's for the comparable maturity Blue indicates yields lower than MWD's for the comparable maturity Size Issue Type Due Call Features Credit Underlying Rating Senior Manager Sale Date $6,245,000 City of Aliso Viejo, Series A COP's (Tax -Exempt) 3/1 2012 @ 102 AAA (Ambac) AA- E. J. De La Rosa & Co. 7/27/2006 $21,025,000 RNR SCH Finanaing Authority Special Tax 9/1 2016 @ 100 AAA (MBIA) A -/A Stone & Youngberg LLC 7/26/2006 $3,170,000 La Mesa COP'S 8/1 20140101 AAA(Ambac) A3 Stone & Youngberg LLC 7/26/2006 $23,504,208 Manteca USD GO ULT 8/1 20160100 AAA (MBIA) Stone & Youngberg LLC 7/27/2006 $24,000,000 Merced Comm. College Dist. GO ULT 8/1 2016 @ 100 AAA(MBIA) A11A+ Stone & Youngberg LLC 7/27/2006 Maturity Coupon Yield to Call Coupon Yield to Call Yield to Maturity Yield to Coupon Maturity Yield to Coupon Maturity Coupon Yield to Call Yield to Maturity 2019 4.125% 4.340% 4.250% 4.400%, 4.250% 4.370%, 4.300% 4.400%,. 4.250% 4.350'7, 2020 4.250% 4.420% 4.300%, 4.150%, 4.350% 4.450%% 4.300% 4.450%, 4.375% 4.450'7, 2021 4.300% 4.470% 4.375% 4.500`/,, 4.400% 4.500% 4.375% 4.500"4, 4.375% 4.500%, 2022 4.375% 4.520% 4.450% 4.550'7, 4.400% 4.550%, 2023 4.400% 4.570% 4.500% 4.600% 4.500% 4.580'%, 2024 4,400% 4.610% 4.550% 4.650% 5.000% 4.460% 4.640%, 2025 4.500% 4.630% 4.600% 4.680% 5.000% 4.480% 4.67M,, 2026 4.500% 4.640% 5.000 % 4.640% 4.776'% 4.600% 4.700%, 2027 2028 2029 2030 2031 4.600% 4.720% 5.000% 4.580% 4.770'7, 2032 2033 2034 2035 2036 5.000% 4.740% 4.869'/,, 2037 4.625% 4.740% COLOR ICLY: Yellow indicates yields higher for the comparable maturity Blue indicates yields lower for the comparable maturity Size Issue Type Due Call Peatures Credit Underlying Rating Senior Manager Sale Date $13,435,000 Chula Vista Redev TABS Ref 9/1 2012 9 102 AAA (Ambac) BBB+ E. J. De La Rosa & Co. 7/18/2006 $9,150,000 Shatter Comm Dev Agcy TABS Ref 1111 2016 9100 AAA (PSA) BBB+ Stone and Youngberg 7/11/2006 $10,636,192 Bassett USD GO ULT 8/1 2016 ® 100 AAA ("GIC) A- George K. Baum & Company 7/19/2006 $7,900,000 City of Hawaiian Gardens TABS Ref 12/1 20169100 AAA (Ambad A3/A Wedbush Morgan/ Chilton 7/20/2006 $33,880,000 Panama -Buena Vista USD COP'S 911 20162100 AAA (MBIA) A3/A Stone & Youngberg LLC 7/20/2006 Maturity Coupon Yield to Call Spread to MMD Coupon Yield to Maturity Spread to MMD Coupon Yield to Call Spread to MMD Coupon Yield to Maturity Spread to MMD Coupon Yield to Call Spread to MMD 2007 4.500% 3.630`% 0.0[,0% 4.00000 3.7 0'o 0.030`% 3.700% 3.700% 0.040%) 2008 4.000%, 3.700% -0.030% 4.000% 3.750% 0.030%, 4.000% 3.780% 0.0901% 4.000% 3.700% 0 010'% 2009 4.000% 3.760% _R010% 4.000% 3.8209% 0.060% 3.850% 3.850% 0.1001% 4.000% 3.830'% ).110%, 4.000% 3.770% 0.0501%, 2010 4.000% 3.820% 0.020% 4.000% 3.880 % 0.080 % 3.900% 3-900% 0.130'% 4.000% 2.8709% 0.1301G. 4.000% 3.850% 0.110 % 2011 4.000% 3.880'% 0.050% 4.000% 3.930% 0.090% 4.500% 3.930 % 0.160'% 4.000% 3.900% 0.130'% 2012 2013 4.500% 4.500% 3-930% 3.980% 0.040% 0.050% 4.000% 4.000% 3.980% 4.030% 0.100 % 0.10(1 % 4.500% 4.500% 3.970% 4.020% 0.160%, 0.150%, 4.000% 4,000% 3.930% 4.000% 0.120 01301/11 2014 4.500% 4.040% 0.040% 4.000% 4.080 % (1.1190% 4.000% 4.150% 0.180'% 4.750% 4:100% 0.1(10^/„ 4,000% 4.050'% 0.11011/, 2015 4.000% 4.110%, 0.050% 4.000% 4.150% 0.100'%, 4.000% 4.200% 0.170'%, 4.750% 4.200% 0100'% 4.000% 4.100% 0.1001. 2016 4,100% 4.210% 0.100% 4.125% 4.250% 1).150% 4.000% 4.250% 0.170% 4.750% 4.250% 0.200%. 4.125% 4.200% 0.15017, 2017 4.125% 4.310% 0_140% 4.2517% 4.350% 0200% 4.200% 4.330% 0.1901% 4.250% 4,300% (1.19011b, 2018 4.250% 4.400% 0.180% 4.375% 4.430% 0.2.1WX� 4.200% 1 4.800% 0.190'% 4.25076 4.400% 0.240`7, 2019 4.250% 4.490% 0.230% 4.375% 4.500% 0260'% 4.250% 1 4.460% 0.230% 5.000% 4.350% 0.15119p, 2020 4.375% 4.550% 0.250% 4.500% 4.550% 0.270%, 4.300% 1 4.530% 0.260%, 2021 4.400% 4.600% 0.220% 4.500% 4.600% 0.290'% 4.375% 4.580% 0.280'X„ 5.000% 4.520'% 0.250%, 2022 4.500% 4.64(77. 0.280 % 4.500% 4.650% U.7,10% 4.400% 4.630% 0.300`7,A737 4.550% 0.25090 2023 4.500% 4.680% 0290'% 4.600% 4.680% 0.3101%, 5.000% 4.580% 0.2500/, 2024 4.500% 4.700% 0.290% 4.600% 4,700% 0.3101%, 5.000% 4.600% 0251")0 2025 4.600% 4.720%, 0.290% 5.000% 4.710% 0.3411'% 2026 4.600% 4.740% 1 0.290% 2027 4.600 % 4.760'% 1 0.290% COLOR KEY: Yellow indicates yields higher for the comparable maturity Blue indicates yields lower for the comparable maturity Sale Date Issue Size (Millions) Insurer Rating Call Feature Underwriter 04/18/07 Moreno Valley Lse Revs $25 AMBAC A 2017 @ 100 De La Rosa & Co. 04/04/07 Monrovia Redev. $5.70 AMBAC A_ 2017 @ 100 Wedbush Maturity Treasury Spread Treasury Spread 2008 Z yr +42 2009 2 yr +44 2010 3 yr +52 2011 5 yr +58 2012 5 yr +60 2017 10 yr +56 10 yr +70H) 2027 30 yr +90 30 yr +97'x' 2037 ---f-30 1 1 30 yr 1 +110 2038 yr +100 Yellow indicates spreads higher Blue indicates spreads lower Size $34,500,000 25,9851000 Size Issue CRA of Los Angeles Stoctun PFA Issue Type Revenue Bonds Revenue Bonds Type Due 9/1/16,36 911/16,37 Due Call Features 9/1/2016 9/1/2016 Call Features Credit AA (Radian) AA (Radian) Credit Underlying Rating BBB (S&P) BBB+ (S&P) Underlying Rating Senior Manager De La Rosa & Co. Stone & Youngberg Senior Manager Sale Date 6112106 6119/06 Sale Dale Yield to Spread To Yield to Spread to Maturity Coupon Maturity Treasury Coupon Maturity Treasury Maturity 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 6.100% 6.100°0100 6.150% 6.150% 100 2015 2017 2017 2018 2018 2019 2019 2020 znz020 2021 2021 2022 2022 2023 2027 2024 2024 2025 2025 2026 2026 2027 2027 2028 2028 2029 2029 2030 2030 2031 2031 2032 2032 2033 2033 2034 2034 2035 2035 2036 6.70 0 6.765 0 2036 2037 6.870% 6.8701/6 163 2037 COLOR KEY: Yellow indicates yields 111glier for [lie comparable maturity Blue indicates yields lower for the comparable maturity Size Issue Type Call Features Insurer Underwriter Sale Date $46,660,000 Pittsburg TABS 2017 @ 100 Arnbac (A -/A-) De La Rosa 11/28/200(? $423,430,000 San Jose TABS 2017 c 100 MBIA (A3/A-/A) JP Morgan 11/28/2006 $277,755,000 San Jose TABS 2017 @ 100 MBIA (A3/A-/A) JP Morgan 11/28/2006 Maturity 2007 Coupon 4.000% Yield to Call Yield to Maturity 3.400% Coupon p Yield to Call Yield to Maturity Coupon Yield to Call Yield to Maturity 2008 4.000% 3.430% 2009 4.000% 3.460% 4.000% 3.460% 2010 4.000% 3.480% 2011 4.500% 3.500% -D0% T 3.500% 2012 4.000% 3.530% 4.000% 3.530% 2013 4.000% 3.570% 4.000% 3.570% 2014 3.500% 3.620% 4.000% 3.620% 2015 4.500% 3.680% 4.000% 3.680%- 2016 4.500% 3.740% 5.000% 3.740% 2017 3.625% 3.820% 4.000% 3.820% 2018 3.7500/6 3.920% 5.000% 3.880% 3.95417, 2019 3.900% 4.020% T 5.000% 3.920% 4.051% 2020 4.000% 4.090% 5.000% 3.950% 4.126%, 2021 4.000% 4.140% 4.50%/5.00% 4.08%/3.98% 4.171774.19% 2022 4.000% 4.180% 5.000% 4.000% 4.243°10 2023 4.100% 4.240% 5.000% 4.020% 4.2889, 5.000%n 4.020% 4.2887 2024 4.125% 4.300% 5.000% 4.040% 4.328% 2025 4.2000/f 4.310% 5.000% 4.060% 4.364170 2026 4.200% 4.320% 5.000% 4.070% 4.391% 2028 3.750% 4.410% 2030 4.250% 4.440°/n 2032 4.450% 4.4607, 2034(l) 4.250% 4.440% 2034 (1) 4.500% 4.450% 4.473% (I) Bifurcated. COLOR KU, Y: Yellow indicates yields higher for the comparable maturity Lr blue indicates yields lower for the comparable maturity DIrL�IOND_ BAR III, VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL TO: CITY CLERK FROM: Aice.1A,1'4— ADDRESS: ORGANIZATION: AGENDA#/SUBJECT: DATE: Ac.�.-�7` j 1, PHONE: I expect to address the Council on the subject agenda/subject item. Please have the Council Minutes reflect my name and address as written above. aa--� Sig&ture This document is a public record subject to disclosure under the Public Records Act.