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HomeMy WebLinkAbout04/20/2010City Council Agenda Tuesday, April 20, 2010 5:15 p.m. — Study Session Room 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 Carol Herrera Steve Tye Mayor Mayor ProTem Ling -Ling Chang Ron Everett Jack Tanaka Council Member Council Member Council Member 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 II of the Americans with Disabilities Act of 1990, the City of Diamond Bar requires that any person in need of any type of special equipment, assistance or accommodations) in order to communicate at a City public meeting, must inform the City Clerk a minimum of 72 hours prior to the scheduled meeting. Have online access? City Council Agendas are now available on the City of Diamond Bar's web site at www.CityofDiamondBar.com Please refrain from smoking, eating or drinking in the council Chambers. The City of diamond Bar uses recycled paper and encourages you !o do the same. DIAMOND BAR CITY COUNCIL MEETING RULES Welcome to the meeting of the Diamond Bar City Council, Meetings are open to the public and are broadcast live on Time -Warner Cable Channel 3 and Verizon FiOS television Channel 47. You are invited to attend and participate. PUBLIC INPUT Members of the public may address the Council on any item of business on the agenda during the time the item is taken up by the Council. In addition, members of the public may, during the Public Comment period address the Council on any Consent Calendar item or any matter not on the agenda and within the Council's subject matter jurisdiction. Persons wishing to speak should submit a speaker slip to the City Clerk. Any material to be submitted to the City Council at the meeting should be submitted through the City Clerk. Speakers are limited to five minutes per agenda item, unless the Mayor determines otherwise. The Mayor may adjust this time limit depending on the number of people wishing to speak, the complexity of the matter, the length of the agenda, the hour and any other relevant consideration. Speakers may address the Council only once on an agenda item, except during public hearings, when the applicant/appellant may be afforded a rebuttal. Public comments must be directed to the City Council. Behavior that disrupts the orderly conduct of the meeting may result in the speaker being removed from the Council chambers. INFORMATION RELATING TO AGENDAS AND ACTIONS OF THE COUNCIL Agendas for regular City Council meetings are available 72 hours prior to the meeting and are posted in the City's regular posting locations, on DBTV Channel 3, Time -Warner Cable Channel 3, ROS television Channel 47 and on the City's website at www.ci.diamond-bar.ca.us. 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) 839-7010 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, CassetteNideo tapes of meetings: (909) 839-7010 Computer access to agendas: www.ci.diamond-bar.ca.us General information: (909) 839-7000 CITY OF DIAMOND BAR CITY COUNCIL AGENDA April 20, 2010 Next Resolution No. 2010-10 Next Ordinance No. 03(2010) STUDY SESSION: 5:15 p.m., Room CC -8 ► FY 2010-11 Council Goals and Objectives — Discussion and Action ► Discuss Financing Options for Acquisition of 21810 Copley Dr. — Discussion and Action. Public Comments CALL TO ORDER: PLEDGE OF ALLEGIANCE: INVOCATION: 6:30 p.m. Mayor .Jeremy Defriend, Worship Leader Diamond Canyon Church ROLL CALL: Council Members Chang, Everett, Tanaka, Mayor Pro Tem Tye, Mayor Herrera APPROVAL OF AGENDA: Mayor 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 Presentation of Certificates of Recognition to Diamond Bar Students and Teacher Coordinators participating in the 2010 Inland Valley Regional Spelling Bee sponsored by the Diamond Bar Friends of the Library. 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. April 20, 2010 PAGE 2 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 Parks and Recreation Commission Meeting — April 22, 2010 - 7:00 p.m., AQMDIGovernment Center Hearing Board Room, 21865 Copley Dr. 5.2 Neighborhood Meeting at Silver Tip Park — April 24, 2010 - 10:00 a.m., 900 Longview Dr. 5.3 Planning Commission Meeting — April 27, 2010 — 7:00 p.m., AQMDIGovernment Center Auditorium, 21865 Copley Dr. 5.4 City Council Meeting — May 4, 2010 — 6:30 p.m., AQMDIGovernment Center Auditorium, 21865 Copley Dr. 6. CONSENT CALENDAR: 6.1 City Council Minutes — Regular Meeting of April 6, 2010 — Approve as submitted. 6.2 Ratification of Check Register — Dated March 31, 2010 through April 14, 2010 totaling $432,606.69. Requested by: Finance Department 6.3 Award of Contract to Lance, Soil & Lunghard, CPA for Auditing Services for FY 2009-2010 to 2011-2012, with the Option to Renew for an Additional Two Years. Recommended Action: Award. Requested by: Finance Department April 20, 2010 PAGE 3 6.4 Adopt Resolution No. 2010 -XX: Vacating an Easement for Slope Purposes on Lot 56 of Tract Map No. 23483 in the City of Diamond Bar, California. Recommended Action: Adopt. Requested by: Public Works Department 6.5 Adopt Resolution No. 2010 -XX: Approving Program Supplement Agreement No. 010-N to Administer the Agency -State Agreement No. 07-5455R for Utilization of Federal Funds in the Amount of $125,000 for the Pathfinder Median Project Between the Northbound State Route 57 On/Off Ramps and Fern Hollow Dr. Recommended Action: Adopt. Requested by: Public Works Department 7. PUBLIC HEARINGS: None. 8. COUNCIL CONSIDERATION: 8.1 Consideration of Financing Options for the Acquisition of 21810 Copley Dr.; and, Adopt Resolution No. 2010 -XX: Regarding the City's Intention to issue Tax Exempt Obligations. Recommended Action: Direct and Adopt. Requested by: City Manager 9. COUNCIL SUB -COMMITTEE REPORTSICOUNCIL MEMBER COMMENTS: 10. ADJOURNMENT: Study Session No. 1 CITY OF DIAMOND BAR MEMORANDUM TO: Honorable Mayor and Members of the City Council From: Ryan McLean, Assistant to the City Manager Date: April 20, 2010 SUBJECT: FY 2010-2011 Council Goals & Objectives Discussion The following list contains the City Council's existing Goals & Objectives. Except where noted in red, staff recommends these items be maintained for FY 10-11. The Council may also choose to remove existing or add new items as it deems appropriate. 1. TRAFFIC MITIGATION • Pursue the 57/60 Freeway Interchange corridor long-term "final fix" and present an annual status report to the Council. Work with federal representatives to ensure the project is on the next Transportation Reauthorization Bill known as "Moving Ahead for Progress in the 21St Century (MAP -21)". • Participate in the development of SCAG's Regional Goods Movement Plan to ensure the plan is equitable in its distribution of goods movement related traffic. • Develop the Four Corners Transportation Coalition (FCTC) and implement the four priority projects as identified by the Coalition. • Support and participate in the completion of the Lemon Avenue on and off ramp project. • Monitor and evaluate the Neighborhood Traffic Management Plan solutions, the Traffic Signal Interconnect project, and the DB Traffic Management System (TMS). 2. FISCAL RESPONSIBILITY/ECONOMIC DEVELOPMENT • Create a long-term City-wide financial plan for preservation of the City's fixed assets, including infrastructure, buildings, parks, and other facilities. • Develop incentive -based Specific Plans to revitalize areas such as K -Mart and Market World. • Adopt and market a Specific Plan for the future use of the 28 acre parcel at Diamond Bar Blvd. and Brea Canyon Road (Site D). • Identify and implement development opportunities for the former Honda dealership property that will result in the greatest net benefit to the community. • Develop a plan to address the needs of the City's Lighting and Landscape Assessment Districts to ensure their financial sustainability. 3. COMMUNICATIONS • Encourage public participation and communication and collect scientifically valid data to gauge community interest and opinion of potentially significant projects and programs. 4. OTHER ITEMS • Negotiate/evaluate waste hauler proposals, approve new waste hauler franchise agreements, and update the City's Solid Waste Ordinance. New waste hauler agreements were completed in FY 09-10, and will go into effect in August. With this in mind, staff recommends the item be amended as follows: "Update the City's Solid Waste Ordinance" • Expand the Sphere Of Influence and City boundary to incorporate properties west and southwest of the city (Crestline/ Diamond Canyon property) and evaluate a potential SOI and boundary modification. The Crestline/Diamond Canyon area was officially annexed into Diamond Bar in 2009. Staff recommends this item be removed from the list going forward. • Preserve Windmill structure located at the Ralph's Shopping Center via maintenance and/or ownership of structure and/or property. • Develop a City-wide branding plan that incorporates standard design elements with a unifying theme that reflects the image of Diamond Bar. • Establish a "quiet zone" on the MetroLink train line at Lemon Avenue near Walnut Elementary School. • Explore opportunities to increase available parking at the library through shared parking agreements. Due to significant push back from the property owner and the City's recent purchase of the 21810 Building for City Hall and a potential library relocation site, staff recommends this item be removed. Staff recommends any goals related to library improvements be included in a new item related to the recently purchased building. K • Develop and implement appropriate sustainability programs identified in the Council's adopted sustainability report and obtain Energy Efficiency Block Grant (EECBG) funding approval to be used for eligible sustainable projects in Diamond Bar. Since the City's EECBG application was approved and projects are currently being implemented, staff recommends this item be amended as follows: "Develop and implement appropriate sustainability programs identified in the Council's adopted sustainability report" 5. NEW ITEMS PROPOSED BY STAFF • Complete design, construction, and building preparation necessary to relocate City Hall to the new facility by mid -2011. • Work with the County/County Library to reach a firm agreement to relocate the current library to the new City Hall facility • Develop contingency plans for the first floor space should the County Library choose not to relocate to the new City Hall facility STUDY SESSION NO. 2 SEE COUNCIL CONSIDERATION AGENDA ITEM NO. 8.1 Agenda No. 6.1 MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR APRIL 6, 2010 CLOSED SESSION: 5:30 p.m., Room CC -8 Public Comments on Closed Session Agenda — None ► Government Code Section 54956.8 Property Address: 21810 Copley Drive Diamond Bar, CA 91765 Agency Negotiator: City Manager Negotiating Party: Behringer Harvard Western (Portfolio) P.O. Box 190700 San Francisco, CA 94119-00700 Under Negotiation: Price and Terms of Payment Closed Session Adjourned at 6.20 p.m. to the Regular Meeting CALL TO ORDER: Mayor Herrera called the Regular City Council meeting to order at 6:30 p.m. in The Government Center/SCAQMD Auditorium, 21865 Copley Dr., Diamond Bar, CA. CM/DeStefano reported that during this evening's Closed Session the City Council discussed property located a1:21810 Copley Dr. Under discussion were price and terms of payment. Further, under Council Consideration, Item 8.1 this matter will be discussed further. No public comments were received and Closed Session adjourned at approximately 6:20 p.m. PLEDGE OF ALLEGIANCE: Mayor Herrera led the Pledge of Allegiance. INVOCATION: Pastor Randy Lanthripe, Church in the Valley, gave the invocation. ROLL CALL: Council Members Ling -Ling Chang, Ron Everett, Jack Tanaka, Mayor Pro Tem Steve Tye and Mayor Carol Herrera. Staff Present: James DeStefano, City Manager; David Doyle, Assistant City Manager; Michael Jenkins, City Attorney; Ken Desforges, IS Director; David Liu, Public Works Director; Bob Rose, Community Services Director; Linda Magnuson, Finance Director; Greg Gubman, Community Development Director; Ryan McLean, Asst. to City Manager; Rick Yee, Senior Engineer; Marsha Roa, PIO Manager; Lauren Hidalgo, Public Information Specialist; Anthony Santos, Management Analyst, and Tommye Cribbins, City Clerk. APRIL 6, 2010 PAGE 2 CITY COUNCIL APPROVAL OF AGENDA: As Presented. 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS 1.1 M/Herrera asked Miss Diamond Bar and her Court along with Coordinator Linda Headlee to come down to be introduced. MPT/Tye then introduced Miss Diamond Bar 2010 and her Court. Miss Diamond Bar Julia Hernandez presented the City Council with a Certificate of Appreciation. 1.2 MPT/Tye proclaimed April 23, 2010 "Arbor Day" and presented the proclamation to CSD/Rose. NEW BUSINESS OF THE MONTH: 1.3 M/Herrera presented a City Tile to Cassidi Haskell, Sales Manager, representing Ayres Suites, 21951 Golden Springs Dr. Diamond Bar, as Business of the Month for April 2010. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: None Offered. 3. PUBLIC COMMENTS: Jesse Lanz, D.B. Library Manager, announced that National Library Week is April 11 through 17, 2010. Mr. Lanz went on to list the many events planned, with the kickoff event being the 17th Annual Friends of the Library Wine Soiree on Sunday, April 11 from 4:00 to 7:00 p.m. at the Diamond Bar Center. Pat Fabio, representing Congressman Gary Miller's office, announced the Artistic Discovery Art Competition for 2010. She stated that any interested students should call Congressman Miller's office in Brea at (714) 257-1142 for further details. Rick Rogers, President of the Friends of the Library stated that it is the position of the Friends of the Library that the possible acquisition of the building at 21810 Copley Dr. by the City represents a great opportunity to increase the library. Mr. Rogers then announced the 17th Annual Friends of the Library Wine Soiree being held at the Diamond Bar Center on Sunday, April 11th with all proceeds benefiting the Diamond Bar Library. Tony Torng also spoke in favor of the potential purchase of 21810 Copley Dr. under Item 8.1. 4. RESPONSE TO PUBLIC COMMENTS: None Offered. APRIL 6, 2010 PAGE 3 CITY COUNCIL 5. SCHEDULE OF FUTURE EVENTS: 5.1 Traffic and Transportation Commission Meeting — April 8, 2010 — 7:00 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 5.2 Sycamore Canyon Park Trail and Restroom Building Dedication — Saturday, April 10, 2010 — 10:00 a.m., 22930 Golden Springs Dr. (Trail Head along Diamond Bar Blvd.) 5.3 Friends of the Library's 17th Annual Wine Soiree — April 11, 2010 — 4:00 p.m. — 7:00 p.m., Diamond Bar Center Ballroom, 1600 S. Grand Ave. 5.4 Planning Commission Meeting — April 13, 2010 — 7:00 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 5.5 City's 21St Birthday Party — April 17, 2010 — 11:00 a.m. to 5:00 p.m. (Carnival rides until 6:00 p.m.) — Pantera Park, 738 Pantera Dr. 5.6 City Council Meeting — April 20, 2010 — 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 6. CONSENT CALENDAR: MPT/Tye moved, C/Chang seconded, to approve the Consent Calendar as presented. Motion carried by the following Roll Call: AYES: COUNCIL MEMBERS: Chang, Everett, Tanaka, MPT/Tye M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 6.1 CITY COUNCIL MINUTES: 6.1.1 Study Session of March 2, 2010 —Approved as submitted. 6.1.2 Regular Meeting of March 2, 2010 —Approved as submitted. 6.1.3 Special Meeting of March 11, 2010 —Approved as submitted. 6.2 RECEIVED AND FILED PLANNING COMMISSION MINUTES: 6.2.1 Regular Meeting of February 9, 2010 6.2.2 Regular Meeting of March 9, 2010 6.3 RECEIVED AND FILED PARKS AND RECREATION COMMISSION MINUTES: 6.3.1 Regular Meeting of January 28, 2010 6.3.2 Regular Meeting of March 9, 2010 6.4 RECEIVED AND FILED TRAFFIC AND TRANSPORTATION COMMISSION MINUTES for the Regular Meeting of January 14, 2010. 6.5 RATIFIED CHECK REGISTER - Dated February 25, 2010 through March 30, 2010 totaling $2,384,103.27. APRIL 6, 2010 PAGE 4 CITY COUNCIL 6.6 APPROVED TREASURER'S STATEMENT — Month of February 2010. 6.7 RECEIVED, ACCEPTED AND FILED PROPOSITION A LOCAL RETURN FUND, PROPOSITION C LOCAL RETURN FUND AND TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 ANNUAL FINANCIAL REPORT FOR FISCAL YEARS ENDED JUNE 30, 2009 AND 2008. 6.8 INCREASED CONTRACT WITH THE COMDYN GROUP, INC. FOR AS - NEEDED INFORMATION TECHNOLOGY SERVICES FROM $38,150 TO AN AMOUNT NOT -TO -EXCEED $47,150. 6.9 APPROVED PLANS AND SPECIFICATIONS; AWARDED CONSTRUCTION CONTRACT FOR THE 2009-2010 CLEGHORN DRIVE/GOLD NUGGET AVENUE NEIGHBORHOOD TRAFFIC MANAGEMENT PROGRAM PROJECT TO PREMIER PAVING, INC. IN THE AMOUNT OF $14,962 AND AUTHORIZED A CONTINGENCY AMOUNT OF $1,500 FOR CONTRACT CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $16,462. 6.10 ADOPTED RESOLUTION NO. 2010-09: SUPPORTING THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010. 6.11 AUTHORIZED THE CITY MANAGER TO PURCHASE THREE HYBRID FLEET VEHICLES FROM MCCOY MILLS FORD AT A COST NOT -TO - EXCEED $100,000 USING SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT AB2766 SUBVENTION FUNDS. 7. PUBLIC HEARINGS: None 8. COUNCIL CONSIDERATION: 8.1 ACQUISITION OF 21810 COPLEY DRIVE FOR USE AS CITY HALL AND RELATED PUBLIC FACILITIES. CM/DeStefano stated that staff is recommending that the City Council authorize the purchase of the building at 21810 Copley Dr.based on the following information. As indicated earlier, D.B. is almost 21 years old. Since 1989 the City Hall has been located within leased office space within the Gateway Corporate Center. In March 2001, after residing at the location since incorporation, City offices moved from 21660 Copley Dr. to its current location for which the current 10 -year lease is about to expire (February 28, 2011). Due to decades of growth, staff believes it is now appropriate to consider a permanent and publicly owned home for City Hall and related public facilities. As the AQMD lease comes to a APRIL 6, 2010 PAGE 5 CITY COUNCIL conclusion a negotiation process began with AQMD for a potential lease renewal. As a part of that process, staff began to look at other opportunities within the City that were of the size and scope to accommodate the facilities and provide the qualifications for a City Hall facility. During the search for lease space, staff became aware of the availability of property directly across the street from the current facility at 21810 Copley Drive. Staff first inquired about leasing the property and the lease was substantially higher than what staff hoped to negotiate with the AQMD. From that discussion emerged the possibility of a potential purchase of the building. The building has been vacant since December 31, 2009 when the 10 -year lease with Allstate Insurance expired. The 12,000 sq. ft. of current AQMD space is no longer sufficient to serve the City's needs and accommodate the myriad of services that have been added to the City's menu. Discussions with the AQMD included a request to expand the existing 12,000 sq. ft. to at least 15,600 sq. ft. The renewal lease fee for the AQMD space would be about $1.96 per square ft. which is a competitive rate and a rate that included a new fee for use of the AQMD Auditorium. The current lease costs the City approximately $270,000 per year. The new lease with the AQMD with the added square footage would cost approximately $100,000 more per year. A 10 -year lease with an assumption of an annual CPI adjustment of approximately 3% would result in a 10 -year lease payout of about $481,000 per year. In addition to the AQMD space, the City rents 12-14 self -storage facilities throughout D.B. at a cost of about $20,000 per year. About 10 years from now the storage facilities cost would most likely be closer to $30,000 for which would continue to be a very inefficient service level for retention of records. Assuming a 10 -year lease at the same rate of CPI increases, at the end of 20 years, the City would spend approximately $685,000 per year in rent and almost $40,000 per year in storage fees. Using PowerPoint showing the building, CM/DeStefano stated that 21810 Copley Dr. is a building located directly across from the AQMD campus and is owned by a Dallas based commercial real estate firm (Behringer Harvard — seller) that has five buildings within the portfolio that includes the 21810 Copley Dr. building. Staff has negotiated a purchase price of $9,917,100 ($180 per sq. ft. for 55,095 usable sq. ft.) The building is currently vacant and in very good condition. The building was purchased by Behringer Harvard in 2005 for about $13 million. The building has 300 parking spaces surrounding the building. The building offers the lowest possible relocation costs due to its proximity to the current location since the current infrastructure is located within the street. Staff estimates that the total moving expenses and tenant improvements will cost about $1 million. Should the City Council decide to purchase the building, staff would recommend that City Hall offices be located on the second floor which would leave the first floor open for APRIL 6, 2010 PAGE 6 CITY COUNCIL public and private uses that would provide the best opportunity for partnerships and economic benefit. Significant tenant improvements would be needed to properly configure the open office space with public reception areas, meeting room areas, community spaces and appropriately sized employee work spaces. Staff is looking at this facility for a variety of reasons including providing adequate space for all City services, a dedicated emergency operations center; a larger public service counter; more public meeting rooms; elimination of off-site rental storage; provide a public safety personnel area; storage, office and computer training room (relocated from the Diamond Bar Center), providing additional parking space, etc. The move will require consulting services for the tenant improvements at a cost of approximately $1 million CM/DeStefano stated that the cost to purchase the building $9.9 million will require $2 million additional dollars to move everything and provide the public and employees with the infrastructure to be fully operational. Because the current furniture, fixtures and equipment are owned by the AQMD, there is very little of the current furniture, fixtures and equipment that could be relocated to a different City Hall site and most of the current equipment is quite outdated. Ownership of a new building would by its nature create certain costs that the City does not presently have such as paying for lights, water, interior maintenance, landscape and building maintenance, association dues, depreciation, etc. Staff further believes that those costs with potentially new employees to care for the building would be about $400-$450,000 per year. Staff believes that if City Hall occupied the entirety of the second floor of 27,000 sq. ft. for City Hall operations, there would also be some additional space required on the first floor to accommodate the IT server room and a large space for community meetings. The obvious choice for the remaining ground floor square footage was to work with the County of Los Angeles to consider moving and expanding the existing Diamond Bar Library branch. County officials and their architects have visited the site and believe that it can be done. In lieu of a floor plan, staff believes that there is about 18,000 sq. ft. available for a dedicated library space with additional space through sharing of some common areas which would arrive at about the 25-26,000 sq.ft. library for which the City was requesting in the California State Bond Act application of 2004. The County is looking at this very carefully. CM/DeStefano stated the he did not want to imply that the County would move into the space because negotiations are not to that point as yet. Another public option is addressed in the new Parks Master Plan which talks about the need for planning for improved and expanded senior services. If the City decided not to have an agreement with the County for a library within the building the City might wish to create a dedicated senior facility within the ground floor of the public spaces. Because senior activities occur multiple days of the week at the Diamond Bar Center it impacts the City's ability to APRIL 6, 2010 PAGE 7 CITY COUNCIL generate rentals from corporate users that want to lease the space for business meetings, etc. If not for the aforementioned, the Copley Drive space could be leased out to other public entities or leased out to private tenants. The market for leasing space is very soft at this point in history and I would caution the Council that it may not be a time that space could readily be rented out. However, the building could provide an attractive location for an additional government use or private use and likely within a couple of years, it could be an attractive use for such a tenant. A secondary public use or a private use would generate lease revenue to the City in addition to that which the City might receive from a library negotiated lease. CM/DeStefano stated that staff asked its financial consultant to look at the City's fiscal health and overall ability to finance, purchase with cash and to operate and maintain the building. The consultant concluded that under the most conservative revenue forecasts, the City indeed had the ability to purchase the building outright, to purchase the building through financing options and/or to maintain and operate the building. Staff took the most aggressive review of what the resources would be. The City has limited resources today compared to a few years ago thanks to the economy, the State of California and so forth. Staff did not assume the better years in its analysis. Staff also did not assume any financial resources coming from the stadium project. With all of that, the consultant tells staff it believes that the City has the financial health and ability to conduct this transaction. Because the market is soft for office purchases and because the building is vacant and this building is part of a small portfolio the seller owns, it is advantageous for the City to be able to acquire the building quickly because with the City's ability to complete a transaction by initially funding the purchase with cash the building can be acquired at a lower rate. Paying cash initially for the purchase does not limit the City's ability to finance the cash purchase. Staff is seeking Council's approval to purchase the building with all cash. Staff is further asking that the Council look at financial options at a later date. Should the Council approve the purchase and direct staff to proceed, it does not preclude the Council from financing all or a portion of the purchase in a timely manner due to legal and tax issues related to an all cash purchase versus a financed purchase. The sales price that CM/DeStefano has negotiated with the seller is $9,917.100. Staff is seeking authorization from the City Council to purchase the building and with that authorization, allow the Mayor, City Attorney and CM/DeStefano to work with the seller and the seller's agent to complete the necessary paperwork. M/Herrera opened the matter to public comment. APRIL 6, 2010 PAGE 8 CITY COUNCIL Helen Doss, 23806 Cholame Dr., said she was very excited when D.B. became a City and felt the purchase of its own building was a wonderful opportunity and step forward. C/Chang felt the purchase of the building was the most fiscally responsible move for the City at this time. C/Chang moved, MPT/Tye seconded, to direct the Mayor, CM/DeStefano and CA/Jenkins to move forward with the cash acquisition of 21810 Copley Dr. MPT/Tye felt this was the right time to do the right thing and this happens to be the right place which is very close to the current City Hall and convenient to residents. He asked for more insight into the City's discussions with the County regarding locating the library facilities at the new building. He agreed with C/Chang that this is the fiscally responsible thing to do and it was his pleasure to second C/Chang's motion. C/Everett thanked residents who spoke in favor of the purchase. He said he also agreed it was time. Other residents have spoken in favor of the acquisition. One resident was concerned about kids walking from Lorbeer Middle School. He felt since the walk was only 10 minutes longer than to the current location the students would be able to deal with the change. He appreciated staff's work and was interested in moving forward with the cash transaction and looking at the public and private financial opportunities as soon as possible. C/Tanaka said when he first heard about the opportunity he was very excited about D.B. having a home and a City Hall; but learning that the new location did not call for a City Council Chamber he felt it was somewhat incomplete. He views a government center and a City Hall as being comprised of offices, conference rooms, and storage but also as a location that residents can look to with pride as a facility that includes Council Chambers. He advocates expansion of the library and would prefer to see it built where originally intended next to the Diamond Bar Center; however, if the option is that the City is not able to build a Council Chamber he would still support the proposal and would like for staff to look at the cost to build a Council Chamber on the lower level. He was also concerned about a library co -habiting with a City upstairs and a library downstairs and folks being confused about whether they were visiting a public library or going there to do business at City Hall. M/Herrera said she also supported the fabulous and exciting opportunity. Many are concerned about the downturn in the economy but what that has led to is a benefit to the City by making available a building that the City might not otherwise be able to afford a building that is in excellent APRIL 6, 2010 PAGE 9 CITY COUNCIL condition and a building that is much, much larger than the City would need for a City Hall that could accommodate other uses. She is making a commitment to the community to speak directly with Supervisor Knabe and use all of her persuasive powers to talk him into relocating the library to the new building because it is a great opportunity for the City of D.B. She believes this is the most fiscally prudent course of action for the City. It would have cost about $20 million dollars to build only a standalone library and for under $10 million dollars the City is getting two possible excellent uses for the price of one. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Everett, Tanaka, MPT/Tye M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None M/Herrera thanked all who spoke in support of this matter. 9. COUNCIL SUBCOMMITTEE REPORTS/COUNCIL MEMBER COMMENTS: C/Everett said he enjoyed and appreciated the State of the City presentation following last Council meeting. He encouraged residents to view the presentation. He appreciated the March 11 Special Meeting at 21810 Copley Dr. which helped the Council come to a good conclusion this evening. It was a pleasure to attend the Miss Diamond Bar Pageant. He congratulated Miss Diamond Bar and her Court and Mike Shea who served as emcee. March 28 he attended an excellent presentation by the Diamond Bar Community Foundation at Mt SAC — a community spotlight on the arts. He said it was his privilege to attend the League of Cities Planning Institute March 24-26 and the excellent training that will be very useful to him as a Council Member. He attended the Regional Chamber of Commerce Good Friday Sunrise Breakfast. On Saturday he attended the Pantera Park Easter Egg Hunt and Pancake Breakfast. His heart and prayers go out to all who have suffered through earthquakes as well as the victims and their families of the coal mining accident. C/Tanaka attended the March 3 Pomona Unified School Board meeting during which possible cuts in the music and arts programs were discussed; the State of the City and reception; D.B. Pony Baseball's opening ceremony on Saturday, March 6; the Miss Diamond Bar Pageant Car Wash on Sunday, March 7; Eagle Scout Ceremony for Koree Hamilton Hines from Troop 777; March 9 and 10 a couple of Neighborhood Watch meetings; Diamond Bar Senior Citizens' St. Patrick's Day Celebration and lunch; and, the Miss Diamond Bar Pageant on March 21. He congratulated Miss Diamond Bar and her Court and thanked them for remaining with the Council through the meeting. On Wednesday, March 24 he attended the retirement of five firefighters from the Los Angeles County Fire Department. Last Saturday he attended the 27th Annual Easter Egg Hunt APRIL 6, 2010 PAGE 10 CITY COUNCIL sponsored by the Diamond Bar Breakfast Lions Club and the City of D.B. He thanked CSD/Rose, staff and volunteers for doing an outstanding job. C/Chang reported that she and her colleagues attended the National League of Cities in Washington D.C. to lobby for transportation funding and in particular, for the SR57/60 Confluence project and other projects that would benefit D.B. While there she learned about a program that would benefit the residents of D.B. — a pharmaceutical discount card available to member cities of the NLC, which give residents of these cities up to 20% off of the pharmacy's regular retail price at no cost to the City. Pharmacies in the network agreed to absorb the costs of the discount so the benefits to the member pharmacies are customer loyalty and increased store traffic. She asked staff to look into the program and update the City Council and residents. She congratulated Miss Diamond Bar and her Court; applauded the Diamond Bar Community Foundation for doing such a fabulous job in presenting Community Spotlight on the Arts. She congratulated and thanked staff for doing such a great job with the Easter Egg Hunt and thanked C/Tanaka and his wife Wanda for all of their work and the Leo's for volunteering. She asked if staff could look into a potential project; a dog park. For many years during her service on City Commissions many people have approached her asking for a dog park and more recently even more residents have asked about the potential for a dog park. She said she envisioned using a small unused portion of an existing park as a dedicated space for residents and their dogs. She invited residents to visit her on Twitter to read her frequently updated report on City activities. MPT/Tye said that it was a privilege to attend the Pony League opening and throw out the first pitch. On March 7 he attended the Eagle Scout Honor Ceremony. MPT/Tye stated that 4% of all Boy Scouts become Eagle Scouts. Congratulations to Koree and Troop 777. He was privileged to attend the Fire Department retirements and the Easter Egg Hunt. On March 28 he attended the Diamond Bar Community Foundation Spotlight on the Arts. Austin Chen from DBHS who captured the Grand Prize at the Grotrian Steinweg International Piano Competition in Germany gave a spectacular performance. It is encouraging that the Diamond Bar Community Foundation puts together these kinds of programs because often people are wondering what can be done during these difficult economic times. The Foundation helps raise funds for DBHS, Diamond Ranch High School and for the Pacific Crest Youth Arts Program for scholarships. He encouraged everyone to attend. M/Herrera said that the City Council works very hard and many Council Members were in attendance at the same events. While there was no City Council Meeting the second Tuesday in March the Council continues to work very hard on behalf of the residents. She thanked Miss Diamond Bar and her Court and was very impressed that they remained for the entire Council Meeting. While in Washington D.C. Council and staff members met with Senators Barbara Boxer and Dianne Feinstein; Congressman Gary Miller, David Dreier and Congress- APRIL 6, 2010 PAGE 11 CITY COUNCIL woman Grace Napolitano and their staff members. Everyone seemed very receptive to the requests and Council and staff are hopeful that their requests will be funded. M/Herrera serves on the Regional Council of SCAG that last week took action to approve the amendment to the 2008 RTP (Regional Transportation Plan) which included the SR 57160 adjusted project price of $260 million as well as, the Lemon Avenue Project. This has been a very exciting evening and she is very excited about the action the Council took this evening and commended them for their courage in voting yes to move forward to buy a building, one of the most momentous things this City has undertaken. She believes it is the right thing to do for the City and will be a very good venture for the City. It will be very exciting to be the owner of a home after being a renter for 21 years! She looks forward to additional information about the building and potential financing options. There are many things to resolve such as convincing the Los Angeles County Library to make this advantageous move. ADJOURNMENT: With no further business to conduct, M/Herrera adjourned the Regular City Council meeting at 8:12 p.m. TOMMYE CRIBBINS, CITY CLERK The foregoing minutes are hereby approved this day of , 2010. CAROL HERRERA, MAYOR CITY COUNCIL Agenda # 6.2 Meeting Date: April 20, 2010 AGENDA REPORT TO: Honorable Mayor and Members of the City Council FROM: James DeStefano, City Mana &e L -C TITLE: Ratification of Check Register dated March 31, 2010 through April14, 2010 totaling $432,606.69. RECOMMENDATION: Ratify. FINANCIAL IMPACT: Expenditure of $432,606.69 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 March 31, 2010 through April 14, 2010 for $432,606.69 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: 1 , Financ6 Director Assistanti anager Attachments: Affidavit and Check Register — 03/31/10 through 04/14/10. 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 March 31, 2010 through April 14, 2010 has been audited and is certified as accurate. Payments have been allowed from the following funds in these amounts: Description Amount General Fund $383,348.73 Community Organization Support Fd $1,500.00 Prop A - Transit Fund 14,237.83 Int. Waste Mgt Fund 5,640.56 CDBG Fund 8,155.97 LLAD 38 Fund 1,141.28 LLAD 39 Fund 380.50 LLAD 41 Fund 241.35 CDBG-R Fund 470.47 Energy Eff/Cnsrvtn Block Grant (EECBG) 16,274.30 Capital Improvement Projects Fund 1,215.70 $432,606.69 Signed: Linda G. Magnu n Finance Director City of Diamond Bar - Check Register 03/31110 thru 04/14/10 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 4/1/2010 1 89198 A AMERICAN SELF STORAGE RENTAL -STORAGE #2153 0014090 42140 259.00 $259.00 4/1/2010 1 89199 JAGRICULTURAL COM WGHTS & MEASURES COYOTE CONTROL SVCS - FEB 0014431 j 45406 509.581 $509.58 4/1/2010 89200 AMERICAN PUBLIC WORKS ASN SUPPLIES-DB4YOUTH 0015350 41200 13.14 $51.16 4/1/2010 JALBERTSONS 1 ALBERTSONS SUPPLIES -ADULT EXCSN 1 0015350 41200 1 38.02 4/1/2010 89201 AMERICAN PUBLIC WORKS ASN APWA MTG - J GARCIA 0015510 42330 165.00 $805.00 4/1/2010 1 AMERICAN PUBLIC WORKS ASN APWA MTG - J FUENTES 0015510 42330 165.00 4/1/2010 89208 AMERICAN PUBLIC WORKS ASN APWA MTG - R YEE 0015510 42330 145.00 $600.00 4/1/2010 AMERICAN PUBLIC WORKS ASN APWA MTG - E CHING 0015510 42330 165.00 4/1/2010 AMERICAN PUBLIC WORKS ASN APWA MTG - C MALPICA 0015510 42330 165.00 4/1/2010 1 89202 AMERICOMP GROUP INC 1PRINTER MAINT - APR -JUN 1 0014070 1 45000 1 1,487.50 $1,487.50 4/1/2010 89203 AT&T MOBILITY EQ RENTAL - DBC 0015333 1 42130 1 12.06 $54.80 4/1/2010 1 JARROWHEAD ARROWHEAD SUPPLIES - DBC 0015333 1 41200 1 42.74 4/1/2010 89204 AT&T MOBILITY WIRELESS-CMGR 0014030 42125 54.50 $88.28 4/1/2010 1 AT&T MOBILITY PH. SVCS - POOL VEH 0014090 42125 11.26 4/1/2010 89208 AT&T MOBILITY PH. SVCS - POOL VEH 0014090 42125 11.26 $600.00 4/1/2010 AT&T MOBILITY PH. SVCS - POOL VEH 0014090 42125 11.26 4/1/2010 89205 ENTERPRISES HIP PROG-897 ADAMSGROVE 1255215 1 44000 8,106.00 $7,295.40 4/1/2010 1 IBASHFORD BASHFORD ENTERPRISES HIP PROG-RETENTION 125 1 20300 -810.60 4/1/2010 89206 BEAR STATE AIR CONDITIONING SVCS IN MAINT- HERITAGE PK 0015333 45300 110.47 $2,511.37 4/1/2010 BEAR STATE AIR CONDITIONING SVCS IN MAINT- HERITAGE PK 0015340 42210 44.53 4/1/2010 89208 BEAR STATE AIR CONDITIONING SVCS IN EQ MAINT-DBC HEAT SYS 0015333 42200 2,271.37 $600.00 4/1/2010 BEAR STATE AIR CONDITIONING SVCS IN MAINT- PANTERA PK 0015333 45300 60.58 4/1/2010 BEAR STATE AIR CONDITIONING SVCS IN MAINT- PANTERA PK 0015340 42210 24.42 4/1/2010 1 89207 BENESYST I PP 07/10 P/R DEDUCTIONS 001 1 21105 1 722.01 $722.01 4/1/2010 1 89208 JOHN E BISHOP ICONTR CLASS - WINTER 0015350 1 45320 1 600.001 $600.00 Page 1 City of Diamond Bar - Check Register 03/31/10 thru 04/14/10 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 4/1/2010 89209 KATHY BREAUX CONTR CLASS -WINTER 0015350 45320 1 144.00 $144.00 4/1/2010 1 89210 BUSINESS TELECOMMUNICATION SYS INC. JPH. MAINT- I.T. 1 0014070 1 42125 1 125.001 $125.00 4/1/2010 89211 CALIFORNIA CONTRACT CITIES ASSOC. CCCA MTG-ACMGR 0014030 42330 550.00 $1,650.00 4/1/2010 1 CALIFORNIA CONTRACT CITIES ASSOC. CCCA MTG-CMGR 0014030 42330 550.00 4/1/2010 89214 CALIFORNIA CONTRACT CITIES ASSOC. CCCA MTG-CPT HALM 0014030 42330 550.00 $312.00 4/1/2010 89212 CHICAGO TITLE HIP PROG-897 ADAMSGROVE 1255215 44000 15.00 $49.00 4/1/2010 1 CHICAGO TITLE HIP PROG-23662 MEADERING 1255215 44000 18.00 4/1/2010 89214 CHICAGO TITLE HIP PROG-21352 FOUNTAIN 1255215 44000 16.00 $312.00 4/1/2010 1 89213 CM SCHOOL SUPPLY ISUPPLIES - TINY TOTS 0015350 1 41200 122.281 $122.28 4/1/2010 1 DAY & NITE COPY CENTER PRINT SVCS -SR NEWSLTTR 0015350 42110 35.12 4/1/2010 1 89214 1CONSTANCE J. LILLIE CONTRACT CLASS -WINTER 0015350 1 45320 1 312.00 $312.00 4/1/2010 DAY & NITE COPY CENTER PRINT SVCS -SR NEWSLTTR 0015350 42110 35.12 4/1/2010 1 89215 CROWN GRAPHICS PRINT SVCS - PLNG 0015210 1 41200 52.20 $52.20 4/1/2010 1 89216 D & J MUNICIPAL SERVICES INC BLDG & SFTY SVCS -FEB 10 1 0015220 1 45201 1 14,734.021 $14,734.02 4/1/2010 89217 DAY & NITE COPY CENTER PRINT SVCS -DAY CAMP 0015350 42110 1,155.67 $1,910.82 4/1/2010 1 DAY & NITE COPY CENTER PRINT SVCS -SR NEWSLTTR 0015350 42110 35.12 4/1/2010 89219 DAY & NITE COPY CENTER PRINT SVCS -SITE D ENV. 0014090 44000 320.54 4/1/2010 DAY & NITE COPY CENTER PRINT SVCS -SR NEWSLTTR 0015350 42110 35.12 4/1/2010 DAY & NITE COPY CENTER PRINT SVCS-VOLUNTEEN 0015350 42110 364.37 4/1/2010 1 89218 IDELTA DENTAL I DENTAL PREM -APR 10 001 1 21104 1 3,499.181 $3,499.18 4/1/2010 1 IDIEHL DIEHL EVANS AND COMPANY LLP PROF. SVCS -AUDITING 0014050 44010 500.00 4/1/2010 1 89219 DIAMOND BAR FRIENDS OF THE LIBRARY ICOM ORG SUP -WINE SOIREE 0114010 1 42355 1 1,500.001$1,500.00 4/1/2010 89220 EVANS AND COMPANY LLP PROF. SVCS -AUDITING 0014050 44010 815.00 $1,315.00 4/1/2010 1 IDIEHL DIEHL EVANS AND COMPANY LLP PROF. SVCS -AUDITING 0014050 44010 500.00 4/1/2010 89221 EVERGREEN INTERIORS PLANT MAINT - C/HALL 0014090 42210 230.00 $487.00 4/1/2010 EVERGREEN INTERIORS PLANT MAINT- LIBRARY 0014090 42210 1 1 257.00 Page 2 City of Diamond Bar - Check Register 03/31/10 thru 04/14/10 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 4/1/2010 89222 FELDMAN ROLAPP & ASSOCIATES INC PROF SVCS -FIN ANALYSIS 0014090 44000 1 10,865.34 $10,865.34 4/1/2010 1 89223 IGLOBAL AFFAIR ENTERTAINMENT ENTERTAINMENT -SR DANCE 1 0015350 1 45300 1 350.001 $350.00 4!1/2010 1 JHP HP EXPRESS SERVICES COMP EQ -SERVER I.T. 1125553 1 46230 1 84.26 4/1/2010 1 89224 IGO LIVE TECHNOLOGY INC IPROF SVCS - CITYVIEW MAR 1 001 1 23005 1 2,400.001 $2,400.00 411/2010 JENKINS & HOGIN, LLP LEGAL SVCS -COMM DEV 0014020 44020 4,378.80 4/1/2010 1 89225 IGRAYBAR ISUPPLIES - DBC 1 0015340 1 41200 1 38.851 $38.85 4/1/2010 1 89226 IGREGORY S GUBMAN REIMB-PNG CONF 1 0015210 1 42330 1 387.221 $387.22 4/1/2010 1 89227 TAM HAGAN RECREATION REFUND 001 1 34740 1 84.00 $84.00 4/1/2010 1 89228 DONNA HEINECKE IRECREATION REFUND 1 001 1 34720 1 180.001 $180.00 4/1/2010 89229 EXPRESS SERVICES COMP EQ -SERVER I.T. 1565610 1 46250 1 8,919.40 $9,003.66 4!1/2010 1 JHP HP EXPRESS SERVICES COMP EQ -SERVER I.T. 1125553 1 46230 1 84.26 4/1/2010 1 89230 IMPACT SIGNS SIGNS -WASHINGTON PK 1 2505310 1 46415 1 411.56 $411.56 4/1/2010 89231 JENKINS & HOGIN, LLP LEGAL SVCS-P/WORKS 0014020 44020 1,281.60 $9,861.20 4/1/2010 JENKINS & HOGIN, LLP LEGAL SVCS -FINANCE 0014020 44020 17.80 4/1/2010 89235 JENKINS & HOGIN, LLP LEGAL SVCS -FEB 2010 0014020 44020 4,165.20 $1,982.76 411/2010 JENKINS & HOGIN, LLP LEGAL SVCS -COMM DEV 0014020 44020 4,378.80 4/1/2010 JENKINS & HOGIN, LLP LEGAL SVCS -COMM SVCS 0014020 44020 17.80 4/1/2010 1 89232 IJI HAE LEE REIMB- PLNRS INST 1 0015210 1 42330 1 54.001 $54.00 4/1/2010 89233 KENS HARDWARE SUPPLIES-VEH 0015310 42200 26.85 $503.77 4/1/2010 KENS HARDWARE SUPPLIES -PARKS MAINT 0015340 42210 355.30 4/1/2010 89235 KENS HARDWARE SUPPLIES -DBC 0015333 41200 108.47 $1,982.76 4/1/2010 KENS HARDWARE SUPPLIES -RECREATION 0015350 41200 13.15 4/1/2010 1 89234 ICITY OF LA VERNE PRKG CITE HRGS - MAR 10 1 0014411 1 45405 1 310.001 $310.00 4/1/2010 1 89235 ILANTERMAN DEV CENTER/COMM INDUSTRIE PARKWAY MAINT-FEB -10 0015558 45503 1,982.76 $1,982.76 Page 3 City of Diamond Bar - Check Register 03/31/10 thru 04/14/10 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 4/1/2010 1 89236 ILAUREN M HIDALGO EMPL COMP PRCH LOAN 001 13135 1 2,421.961 $2,421.96 4/1/2010 1 89237 LILLIAN LEE RECREATION REFUND 001 34740 1 79.00 $79.00 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -COMM SV 0015350 41200 87.20 4/1/2010 1 89238 SURENDRAMEHTA CONTRACT CLASS -WI NTER 0015350 1 45320 1 588.001 $588.00 4/1/2010 89239 OFFICEMAX INC OFFICE SUPPLIES-P/WORKS 0015510 41200 26.60 $2,587.79 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -COMM SV 0015350 41200 87.20 4/1/2010 89243 OFFICEMAX INC OFFICE SUPPLIES -COMM SV 0015350 41200 64.51 $4,113.50 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES-P/WORKS 0015510 41200 22.85 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -BLDG 0015220 41200 14.72 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -DBC 0015333 41200 283.71 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -DBC 0015333 41200 193.15 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -HR 0014060 41200 13.94 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -BLDG 0015220 41300 286.77 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -BLDG 0015220 41200 253.75 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -GENERAL 0014090 41200 44.56 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -GENERAL 0014090 41200 161.84 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -GENERAL 0014090 41200 11.19 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -GENERAL 0014090 41200 364.25 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -GENERAL 0014090 41200 37.53 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -GENERAL 0014090 41200 268.42 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -GENERAL 0014090 41200 210.72 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -GENERAL 0014090 41200 82.69 4/1/2010 OFFICEMAX INC OFFICE SUPPLIES -GENERAL 0014090 41200 159.39 4/1/2010 1 89240 JPAETEC COMMUNICATIONS INC. LONG DIST SVCS-MAR/APRIL 0014090 1 42125 1 845.661 $845.66 4/1/2010 89241 PERS RETIREMENT FUND RETIRE CONTRIB-ER 001 21109 15,270.59 $25,498.45 4/1/2010 PERS RETIREMENT FUND RETIRE CONTRIB-EE 001 21109 10,180.43 4/1/2010 89243 PERS RETIREMENT FUND SURVIVOR CONTRIB 001 21109 47.43 $4,113.50 4/1/2010 1 89242 BONNIE PIXLEY RECREATION REFUND 1 001 1 34720 1 90.001 $90.00 4/1/2010 1 89243 POMONA JUDICIAL DISTRICT I PARKING CITE-JAN'10 1 001 1 32230 1 4,113.501 $4,113.50 Page 4 City of Diamond Bar - Check Register 03/31/10 thru 04/14/10 4/1/2010 89247 SOUTHERN CALIFORNIA EDISON ELECT SVCS 0015510 42126 176.28 $1,347.79 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 4/1/2010 4/1/2010 1 89244 REGIONAL CHAMBER OF COMMERCE SERVICE CONTRACT -APR 0014096 45000 1,000.00 $1,000.00 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 41 1415541 42126 22.32 4/1/2010 4/1/2010 1 89245 JERRYL LYNN SHORT ICONTRACT CLASS -WINTER 0015350 45320 1,539.00 $1,539.00 1 SOUTHERN CALIFORNIA EDISON ELECT SVCS-GLDN SPRGS 0015510 42126 59.43 4/1/2010 4/1/2010 89246 SO CAL SANITATION JEQ RENTAL-SYC CYN PK 2505310 1 46415 1 546.49 $546.49 4/1/2010 89247 SOUTHERN CALIFORNIA EDISON ELECT SVCS 0015510 42126 176.28 $1,347.79 4/1/2010 SOUTHERN CALIFORNIA EDISON ELECT SVCS 0015510 42126 299.90 4/1/2010 89249 SOUTHERN CALIFORNIA EDISON ELECT SVCS 0015510 42126 526.93 $45.00 4/1/2010 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 41 1415541 42126 22.32 4/1/2010 89250 SOUTHERN CALIFORNIA EDISON ELECT SVCS-BREA CYN 0015510 42126 151.05 $3,824.10 4/1/2010 1 SOUTHERN CALIFORNIA EDISON ELECT SVCS-GLDN SPRGS 0015510 42126 59.43 4/1/2010 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 38 1385538 1 42126 1111.88 4/1/2010 1 89248 SPARKLETTS EQ RENTAL-SYC CYN PK 1 0015310 1 42130 1 12.001 $12.00 4/1/2010 THE GAS COMPANY IGAS SVCS -DBC 1 0015333 42126 2,669.82 4/1/2010 1 89249 IRENE SRIBOONWONG IRECREATIOR REFUND 1 001 1 34720 45.00 $45.00 4/1/2010 US BANK LEAGUE MTG - COUNCIL 0014010 42330 13.00 4/1/2010 1 89250 ITENNIS ANYONE CONTRACT CLASS -WI NTER 1 0015350 1 45320 T 3,824.101 $3,824.10 4/1 /2010 89251 THE GAS COMPANY GAS SVCS-HRTG COMM CTR 0015340 42126 215.04 $2,884.86 4/1/2010 THE GAS COMPANY IGAS SVCS -DBC 1 0015333 42126 2,669.82 4/1/2010 1 89252 THE SAN GABRIEL VALLEY NEWSPAPER GR LEGAL AD - DCA 10-78 1 0015210 1 42115 1 455.501 $455.50 4/1/2010 US BANK PLNR INST-STAFF, COMM 0015210 42330 2,040.00 4/1/2010 1 89253 ITOMMYE A CRIBBINS IREIMB - QTRLY BRKFST 1 0014030 1 42325 1 61.441 $61.44 4/1/2010 US BANK LEAGUE MTG - COUNCIL 0014010 42330 13.00 4/1/2010 1 89254 UNION BANK OF CALIFORNIA ILOC FEES-DEC/MAR 1 0014090 1 42129 1 15,907.731 $15,907.73 4/1/2010 89256 US BANK COM DEV -MEETING 0015210 42325 65.47 $19,139.20 4/1/2010 US BANK PLNR INST-STAFF, COMM 0015210 42330 2,040.00 4/1/2010 US BANK PLNG PUBLICATION 0015210 42320 52.99 4/1/2010 US BANK LEAGUE MTG - COUNCIL 0014010 42330 13.00 4/1/2010 US BANK CC/MAYORS CONF-COUNCIL 0014010 42330 561.06 4/1/2010 1 US BANK NLC CONF - COUNCIL 0014010 1 42330 819.40 Page 5 City of Diamond Bar - Check Register 03/31/10 thru 04/14/10 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 4/1/2010 89256... US BANK PWKS- NTMP MTG 0015510 42325 38.65 $19,139.20 ... 4/1/2010 US BANK PWKS- MTGS 0015510 42325 103.00 4/1/2010 US BANK COM SVCS -FUEL 0015310 42310 130.00 4/1/2010 US BANK PUB INFO- PROMO ITEMS 0014095 41400 500.00 4/1/2010 US BANK RECYCLED -PROMO ITEMS 1155516 41400 1,200.00 4/1/2010 US BANK PWKS- SEMINAR MOLINA 0015510 42340 79.00 4/1/2010 US BANK CSMFO CONF- MAGNUSON 0014050 42330 28.05 4/1/2010 US BANK FCTC SUMMIT- SUPPLIES 0014095 41200 433.25 4/1/2010 US BANK PUB INFO- SUPPLIES 0014095 41200 303.94 4/1/2010 US BANK NBRHD IMPR- FUEL 0015230 42310 190.58 4/1/2010 US BANK MTG SUPPLIES - GEN GOV 0014090 42325 564.18 4/1/2010 US BANK NBRHD IMPR- FUEL 0015230 42310 127.77 4/1/2010 US BANK RD MAINT- FUEL 0015554 42310 36.10 4/1/2010 US BANK COM SVCS- FUEL 0015310 42310 282.33 4/1/2010 US BANK RD MAINT- FUEL 0015554 42310 574.59 4/1/2010 US BANK QTRLY BRKFST- SUPPLIES 0014090 42325 109.13 4/1/2010 US BANK POOL VEH FUEL 0014090 42310 173.44 4/1/2010 US BANK COM SVCS- FUEL 0015310 42310 178.78 4/1/2010 US BANK PROMO SUPPLIES -ST OF CITY 0014095 41400 604.40 4/1/2010 US BANK NLC CONF- COUNCIL 0014010 42330 859.40 4/1/2010 US BANK COM SVCS -FUEL 0015310 42310 209.00 4/1/2010 US BANK CMGR- CM CONF 0014030 42330 334.77 4/1/2010 US BANK CMGR- MEETING 0014030 42325 48.68 4/1/2010 US BANK REC- SUPPLIES 0015350 41200 25.53 4/1/2010 US BANK CC/MYRS CONF- COUNCIL 0014010 42330 561.06 4/1/2010 US BANK CC/MYRS CONF-CMGR 0014030 42330 615.06 4/1/2010 US BANK CMGR- SUPPLIES 0014030 41200 10.81 4/1/2010 US BANK MTGS- COUNCIL 0014010 42325 36.77 4/1/2010 US BANK CC/MYRS CONF- CNCL/CMGR 0014010 42330 130.98 4/1/2010 US BANK CC/MYRS CONF-COUNCIL 0014010 42330 20.73 4/1/2010 US BANK REC- SUPPLIES 0015350 41200 143.68 4/1/2010 US BANK PLNRS INST- COUNCIL 0014010 42330 510.00 4/1/2010 US BANK SCAG CONF- COUNCIL 0014010 42330 188.00 4/1/2010 US BANK JEMPLY RECGNTN- SUPPLIES 0014090 1 42325 1 150.00 Page 6 City of Diamond Bar - Check Register 03/31/10 thru 04/14/10 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 4/1/2010 89256... US BANK REC- SR SUPPLIES 0015350 41200 732.25 $19,139.20 ... 4/1/2010 89258 US BANK DBC- SUPPLIES CREDIT 0015333 41200 -155.60 $90.00 4/1/2010 US BANK REC- SUPPLIES 0015350 41200 1,945.36 4/1/2010 89259 US BANK CITY BDAY- SUPPLIES 0015350 42353 501.05 $27,860.58 4/1/2010 US BANK QRTLY BRKFST- SUPPLIES 0014090 42325 52.87 4/1/2010 89260 US BANK APA MBRSHP-TOBON 0015210 42315 255.00 $137.62 4/1/2010 US BANK COM DEV- PUBLICATNS 0015210 42320 568.58 4/1/2010 US BANK PWKS-MTG 0015510 42325 11.48 4/1/2010 US BANK IS- COMP SOFTWARE 0014070 46235 39.96 4/1/2010 US BANK PMI ANL MBRSHP- INF SVCS 0014070 42315 119.00 4/1/2010 US BANK COMPUTER MAINT - IS 0014070 42205 576.56 4/1/2010 US BANK RD MAINT- FUEL 0015554 42310 224.59 4/1/2010 US BANK IS -SUPPLIES 0014070 41200 43.56 4/1/2010 US BANK IS- MEETINGS 0014070 42325 25.32 4/1/2010 US BANK PKS- EQ MAI NT 0015340 42210 19.17 4/1/2010 US BANK COM SVCS -FUEL 0015310 42310 165.23 4/1/2010 US BANK COM SVCS -EQ MAINT 0015310 42200 80.24 4/1/2010 US BANK GFOA CONF- MAGNUSON 0014050 42330 370.00 4/1/2010 US BANK GFOA CONF- FULL 0014050 42330 370.00 4/1/2010 US BANK IFUEL - COM SVCS 0015310 1 42310 141.00 4/1/2010 1 89257 IVALLEY TROPHY SUPPLIES -RECREATION 0015350 1 41200 1 1,655.851 $1,655.85 4/1/2010 VERIZON CALIFORNIA PH SVCS -DIAL IN MODEM 0014090 42125 77.63 4/1/2010 1 89258 ICORNELIS VAN ONSELEN IRECREATION REFUND 1001 1 34720 1 90.001 $90.00 4/1/2010 1 89259 VANTAGEPOINTTRNSFRAGNTS-303248 04/02/10 P/R DEDUCTIONS 1 001 1 21108 1 27,860.581 $27,860.58 4/1/2010 1 89260 JVEHICLE REGISTRATION COLLECTIONS ISLRYATTCHMT-5HFW75220071 1 001 1 21114 1 137.621 $137.62 4/1/2010 89261 VERIZON CALIFORNIA PH SVCS -DBC 0015333 42125 108.18 $222.67 4/1/2010 VERIZON CALIFORNIA PH SVCS -DIAL IN MODEM 0014090 42125 77.63 4/1/2010 VERIZON CALIFORNIA PH SVCS -DATA MODEM 0014090 42125 36.86 4/1/2010 89262 VERIZON WIRELESS CELL CHRGS-IASD MODEM 0014411 42125 45.01 $303.67 4/1/2010 VERIZON WIRELESS CELL CHRGS-EOC 0014090 42125 1 4.82 Page 7 City of Diamond Bar - Check Register 03/31/10 thru 04/14/10 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 4/1/2010 89262... VERIZON WIRELESS CELL CHRGS-DESFORGES 0014070 42125 45.01 $303.67 ... 4/1/2010 89264 VERIZON WIRELESS CELL CHRGS-AZIZ 0014070 42125 45.01 $76.86 4/1/2010 VERIZON WIRELESS CELL CHRGS-CMGR 0014030 42125 100.46 4/1/2010 89265 VERIZON WIRELESS CELL CHRGS-EOC 0014440 42125 58.52 $350.00 4/1/2010 VERIZON WIRELESS CELL CHRGS-EOC 0014090 42125 4.84 4/1/2010 89263 JERIKA VIEYRA ICONTRACT CLASS -WINTER 1 0015350 1 45320 1 52.801 $52.80 4/812010 BEE REMOVERS JALLIANT ALLIANT INSURANCE SERVICES INC SPL EVENT INS -CITY B/DAY 0015350 42353 1,344.54 4/1/2010 89264 WEST END UNIFORMS UNIFORM-V/PATROL 1 0014415 1 41200 1 76.861 $76.86 4/1/2010 89265 IPAUL WRIGHT JAIV SVCS - PLNG/P&R COMM 10014090 1 44000 1 350.001 $350.00 4/1/2010 89266 1 NANCY YOUNG IRECREATION REFUND 1 001 1 34780 1 10.001 $10.00 4/8/2010 1 89267 AARP MATURE DRIVING -MAR 2010 1 0015350 1 45300 168.001 $168.00 4/8/2010 89268 INSURANCE SERVICES INC SPCL EVENT INS-E/EGG HUNT 0015350 45300 391.37 $1,735.91 4/812010 BEE REMOVERS JALLIANT ALLIANT INSURANCE SERVICES INC SPL EVENT INS -CITY B/DAY 0015350 42353 1,344.54 4/812010 1 89269 JANDREA D TARAZON REIMB-CPRS CONF 10015350 142330 1 89.811 $89.81 4/8/2010 BEE REMOVERS IAT & T PH.SVCS-GENERAL 0014090 42125 1 39.88 1 4/8/2010 89270 APRIL I BATSON REIMB-CPRS CONF 1 0015350 1 42330 1 118.651 $118.65 4/8/2010 89271 SUSANA ARMENTA IFACILITY REFUND -DBC 1 001 1 23002 1 500.001 $500.00 4/8/2010 89272 JASCAP ASCAP-CONCERTS IN PARK 1 0015350 1 45305 1 608.001 $608.00 4/8/2010 89273 AT & T PH.SVCS-GENERAL 0014090 42125 30.27 $70.15 4/8/2010 BEE REMOVERS IAT & T PH.SVCS-GENERAL 0014090 42125 1 39.88 1 4/8/2010 1 89274 JDANIEL BANH I RECREATION REFUND 1 001 1 34780 1 65.001 $65.00 4/8/2010 89275 BEE REMOVERS BEE SVCS-D/B/TEMPLE 1385538 42210 75.00 $470.00 4/8/2010 BEE REMOVERS BEE SVCS-D/B/TEMPLE 1385538 42210 395.00 4/8/2010 1 89276 TIFFANY BERMUDEZ IFACILITY REFUND-REAGAN 1 001 1 23002 1 50.001 $50.00 Page 8 City of Diamond Bar - Check Register 03/31/10 thru 04/14/10 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 4/8/2010 89277 BOBBY L ROSE REIMB-CPRS CONF 0015310 42330 60.00 $60.00 4/8/2010 1 89278 DAVID BROWN IFACILITY REFUND -DBC 001 1 23002 1 500.001 $500.00 4/8/2010 4/8/2010 I 89279 IMAURICIO MAURICIO BUSTAMANTE IFACILITY CHRGS-DBC 1 001 366105 734.00 $666.00 4/8/2010 1 89280 ICA PARK & RECREATION SOCIETY MEMBERSHIP DUES-TARAZON 1 0015350 1 42315 1 135.001 $135.00 4/8/2010 1 89281 ICA PARKS & REC SOC -DIS XIII CPRS MTG-STAFF 1 0015350 1 42325 1 100.001 $100.00 4/8/2010 1 89282 ICAL NEV HA KIWANIS FACILITY REFUND -DBC 001 1 23002 350,001 $350.00 4/8/2010 1 89283 IRICHARD CAMPBELL IFACILITY REFUND -DBC 001 23002 1 100.00 $100.00 4/8/2010 1 89284 ICAN YOU IMAGINE THAT INC SUPPLIES-F/FUN FESTIVAL 0015350 1 41200 1 1,013.211 $1,013.21 4/8/2010 1 89285 ICASH CHANGE -CITY BIRTHDAY 001 34720 1 750.001 $750.00 418/2010 1 89286 ICALIFORNIA CONTRACT CITIES ASSOC. JCCCA CONF-COUNCIL 0014010 42330 1 550.001 $550.00 4/812010 1 89287 ITINA CHANG ICONTRACT CLASS -SPRING 0015350 45320 1 90.00 $90.00 4/8/2010 1 89288 ICHAPARRAL MIDDLE SCHOOL LEO CLUB PROCEEDS-F/FUN FESTIVAL 0015350 45300 190.751 $190.75 4/8/2010 J 89289 JCHRISTIN J MURPHEY REIMB-CPRS CONF 0015350 42330 105.001 $105.00 418/2010 1 89290 IFRANCES CHUY FACILITY REFUND -DBC 001 23002 100.00 $100.00 418/2010 1 89291 ICURTIS CROKER IRECREATION REFUND 001 34780 60.00 $60.00 418/2010 1 89292 IVINCENT DAVID IFACILITY REFUND -HERITAGE 1 001 23002 200.001 $200.00 4/8/2010 1 89293 IDEPARTMENT OF CONSERVATION ISMIP FEES -JAN -MAR 2010 1 001 34350 915.001 $915.00 4/8/2010 89294 IDIAMOND BAR HIGH SCHOOL LEO CLUB PROCEEDS-F/FUN FESTIVAL 0015350 1 45300 190.751 $190.75 Page 9 City of Diamond Bar - Check Register 03/31/10 thru 04/14/10 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 4/8/2010 89295 DIAMOND BAR PETTY CASH TRNG-P/WORKS 0015510 42340 10.00 $388.43 418/2010 89297 DIAMOND BAR PETTY CASH SUPPLIES -COMM DEV 0015210 41200 31.25 $50.00 418/2010 DIAMOND BAR PETTY CASH SUPPLIES -RECREATION 0015350 41200 26.24 4/8/2010 89298 DIAMOND BAR PETTY CASH MAINT-COMM SVCS 0015310 42210 13.17 $60.00 4/8/2010 DIAMOND BAR PETTY CASH MTG-GENERAL 0014090 42325 8.00 4/8/2010 DIAMOND BAR PETTY CASH SUPPLIES-P/INFO 0014095 41200 50.69 4/8/2010 DIAMOND BAR PETTY CASH SUPPLIES -COMM DEV 0015210 41200 36.15 4/8/2010 DIAMOND BAR PETTY CASH MTGS-P/WORKS 0015510 42325 22.15 4/8/2010 DIAMOND BAR PETTY CASH MTGS-COMM DEV 0015210 42325 51.15 4/8/2010 DIAMOND BAR PETTY CASH REIMB-PH. SVCS 0015510 42125 25.00 4/8/2010 DIAMOND BAR PETTY CASH MTGS-CITY CLERK 0014030 42325 9.00 4/8/2010 DIAMOND BAR PETTY CASH EQ MAINT-COMM SVCS 0015310 42200 35.63 4/8/2010 DIAMOND BAR PETTY CASH SUPPLIES -RECYCLING 1155515 41200 60.00 4/8/2010 DIAMOND BAR PETTY CASH FUEL -COMM SVCS 0015310 1 42310 1 10.00 4/8/2010 1 89296 ISTACY DUBYAK IRECREATION REFUND 001 34780 1 55.00 $55.00 41812010 1 IFEDEX FEDEX EXPRESS MAIL -GENERAL 0014090 1 42120 1 4/8/2010 89297 1 PATTY DURKEE FACILITY REFUND-SYC CYN 001 123002 1 50.001 $50.00 4/8/2010 1 89298 ISUSAN ENG IRECREATION REFUND 1 001 1 34780 1 60.001 $60.00 4/8/2010 89299 HILTON FARNKOPF & HOBSON LLC EXPRESS MAIL -GENERAL 0014090 42120 1 $91.66 41812010 1 IFEDEX FEDEX EXPRESS MAIL -GENERAL 0014090 1 42120 1 4/8/2010 1 89300 IHALL & FOREMAN, INC. PROF.SVCS-ENGINEERING 0015554 1 44520 1 3,495.001 $3,495.00 4/8/2010 89301 HILTON FARNKOPF & HOBSON LLC INDUSTRIAL WASTE -OCT 09 0015510 R44100 828.75 $2,010.00 4/8/2010 1 HILTON FARNKOPF & HOBSON LLC INDUSTRIAL WASTE -AUG 09 0015510 R44000 1 1,181.25 4/8/2010 1 89302 JIMPACT SIGNS SIGNS-SYC CYN PARK 2505310 1 46415 1 181.091$181.09 4/8/2010 89303 EMPIRE STAGES EXCURSION-PALA CASINO 0015350 45310 114.40 $640.00 418!2010 1 JINLAND INLAND EMPIRE STAGES ITRANSPORTATION-PALA CASIN 1125350 1 45310 525.60 4/812010 1 89304 ITERIS INC EQ-TRFFC MGMT SYS 1565610 46250 1,867.40 $7,354.90 4/8/2010 ITERIS INC EQ-TRFFC MGMT SYS 1565610 46250 5,487.50 1 Page 10 City of Diamond Bar - Check Register 03/31/10 thru 04/14/10 4/8/2010 89309 LAUREL A MEYER REIMB-MTG 0015350 42325 7.00 $90.411 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 4/8/2010 1 4/8/2010 1 89305 JJOLLIBEE FOODS IFACILITY REFUND -DBC 001 23002 350.001 $350.00 4/8/2010 1 4/8/2010 1 89306 ISEAN KATZ IRECREATION REFUND 1 34780 1 11.001 $11.00 4/8/2010 1 4/8/2010 1 89307 IKENS HARDWARE SUPPLIES -ROAD MAINT 0015554 1 41250 1 73.23 $73.23 418/2010 1 4/8/2010 1 89308 JJI YUN KIM IFACILITY REFUND-REAGAN 1 001 1 23002 1 50.001 $50.00 4/8/2010 89309 LAUREL A MEYER REIMB-MTG 0015350 42325 7.00 $90.411 4/8/2010 1 LAUREL A MEYER IREIMB-CPRS CONF 0015350 42330 1 1 83.48 4/8/2010 1 89310 ILEGENDS FC IFACILITY REFUND -DBC 1 001 1 23002 1 100.00 $100.00 4/8/2010 1 LOS ANGELES COUNTY MTA CITY SUBSIDY -MAR 2010 1 1 i 25553 1 45533 1 1,090.45 4/8/2010 1 89311 IJINNY LEI RECREATION REFUND 001 34780 60.001 $60.00 4/8/2010 1 89312 IMELODY LI IRECREATION REFUND 001 34780 77.001 $77.00 4/8/2010 1 89313 JHUAN LIU IRECREATION REFUND 1 001 1 34780 1 60.001 $60.00 418/2010 1 89314 ILIVESOUND CONCEPTS ISOUND SYS -CITY B/DAY 0015350 1 42353 1 690.001 $690.00 4/8/2010 89315 LOS ANGELES COUNTY MTA MTA PASSES -MAR 2010 1125553 1 45535 1 3,818.05 $4,908.50 4/8/2010 1 LOS ANGELES COUNTY MTA CITY SUBSIDY -MAR 2010 1 1 i 25553 1 45533 1 1,090.45 4/8/2010 1 89316 JKELLEYMAENPAA IRECREATION REFUND 1 001 34780 1 10.00 $10.00 4/8/2010 1 MOBILE INDUSTRIAL SUPPLY INCORP SUPPLIES -PARKS 0015340 1 41200 302.64 4/8/2010 1 89317 IMINUTEMAN PRESS R & D BLUEPRINT 1PRINT SVCS-PTHFNDR LNDSCP 2505510 46420 76.561 $76.56 4/8/2010 893111 MOBILE INDUSTRIAL SUPPLY INCORP SUPPLIES -DBC 0015333 41200 8.00 $310.64 4/8/2010 1 MOBILE INDUSTRIAL SUPPLY INCORP SUPPLIES -PARKS 0015340 1 41200 302.64 4/8/2010 1 89319 IDIANE MOORE REFUND -METROLINK PASS 1 112 1 34850 1 140.201 $140.20 418/2010 1 89320 IVENUS PELAEZ IRECREATION REFUND 001 34780 65.001 $65.00 4/8/2010 1 89321 1 PERIWINKLE ENTERTAINMENT PRODUCTION IPETTING ZOO -CITY B/DAY 1 0015350 42353 1,525.001 $1,525.00 Page 11 Check Date I Check City of Diamond Bar - Check Register 03/31/10 thru 04/14/10 Vendor Name Transaction Description I Fund/ Dept I Acct# I Amount Notal Check Amount 4/8/2010 89322 UNIFIED SCHOOL DISTRICT FACILITY RENTAL-E/EGG HNT 0015350 1 42140 100.00 $280.00 4/8/2010 JPOMONA 1 POMONA UNIFIED SCHOOL DISTRICT FACILITY RNTL-CITY B/DAY 0015350 1 42353 180.00 4/8/2010 1 89323 ICYNTHIA PRECIADO RECREATION REFUND 1 001 1 34780 1 60.00 $60.00 4/8/2010 18ECTRAN SECTRAN SECURITY INC. COURIER SVCS -APRIL 10 0014090 44000 1 299.73 4/8/2010 1 89324 R F DICKSON COMPANY INC DEBRIS COMPOSTING -FEB 1 1155515 1 45500 1 1,680.551 $1,680.55 4/8/2010 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 41 1415541 42126 219.03 4/8/2010 1 89325 JAILEEN REBAYA RECREATION REFUND 1 001 1 34780 1 60.00 $60.00 4/8/2010 SOUTHERN CALIFORNIA EDISON ELECT SVCS-TRAFFC CONTRL 0015510 42126 2,015.24 4/8/2010 1 89326 CORA REYES FACILITY REFUND -DBC 1 001 1 36615 1 40D.001 $400.00 4/8/2010 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 39 1395539 42126 380.50 4/8/2010 89327 JOE SANTOYO FACILITY REFUND-SYC CYN 001 23002 50.00 $50.00 4/8/2010 89328 ISCHORR METALS INC RAMPS -CITY B/DAY 1 0015350 1 42353 1 20.581 $20.58 4/8/2010 89329 SECURITY INC. COURIER SVCS -MARCH 10 0014090 44000 299.73 $599.46 4/8/2010 18ECTRAN SECTRAN SECURITY INC. COURIER SVCS -APRIL 10 0014090 44000 1 299.73 4/8/2010 89330 SOUTHERN CALIFORNIA EDISON ELECT SVCS -TRAFFIC CONTRL 0015510 42126 388.86 $7,855.43 4/8/2010 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 38 1385538 42126 42.87 4/8/2010 89332 SOUTHERN CALIFORNIA EDISON ELECT SVCS -PARKS 0015340 42126 4,292.40 $450.00 4/8/2010 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 41 1415541 42126 219.03 4/8/2010 89333 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 38 1385538 42126 21.46 $750.00 4/8/2010 SOUTHERN CALIFORNIA EDISON ELECT SVCS-TRAFFC CONTRL 0015510 42126 2,015.24 4/8/2010 89334 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 38 1385538 42126 495.07 $625.58 4/8/2010 SOUTHERN CALIFORNIA EDISON ELECT SVCS -DIST 39 1395539 42126 380.50 4/8/2010 1 89331 SPORT PINS INTERNATIONAL INC SUPPLIES -CITY B/DAY 1 0015350 1 42353 1 2,186.15 $2,186.15 4/8/2010 1 89332 JALVIN SUNGA IRECREATION REFUND 1 001 1 36615 1 450.00 $450.00 4/8/2010 1 89333 SUNGARD PUBLIC SECTOR PENTAMATION JANNIL MAINT-COMP SYS 1 0014070 1 42205 1 750.001 $750.00 418/2010 89334 THE SAUCE CREATIVE SERVICES BANNERS-E/EGG HUNT 1 0015350 1 45300 1 625.581 $625.58 4/8/2010 89335 TIME WARNER IMODEM SVCS -COUNCIL 1 0014010 1 42130 1 48.991 $48.99 Page 12 City of Diamond Bar - Check Register 03/31/10 thru 04/14/10 4/8/2010 89339 VERIZON CALIFORNIA PH.SVCS-PETERSON 0015340 42125 37.97 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount I Total Check Amount 4/8/2010 89336 1 BRIAN TROUDY FACILITY REFUND-PANTERA 001 23002 50.001 $50.00 42125 37.28 $99.00 4/8/2010 VERIZON CALIFORNIA PH.SVCS-FAX LINE 4/8/2010 1 89337 ISUMERMAL M VARDHAN REFUND -GRADING FEES 777T-001 1 34610 1 21.331 $21.33 PH.SVCS-DBC 0015333 42125 263.71 $50.00 4/8/2010 4/8/2010 1 89338 1 ROBERT VELAZQUEZ IRECREATION REFUND 001 1 34780 1 65-001 $65.00 4/8/2010 89339 VERIZON CALIFORNIA PH.SVCS-PETERSON 0015340 42125 37.97 $1,403.25 4/8/2010 VERIZON CALIFORNIA PH.SVCS-DATA MODEM 0014090 42125 89.23 4/8/2010 89342 VERIZON CALIFORNIA PH.SVCS-HERITAGE PK 0015340 42125 37.28 $99.00 4/8/2010 VERIZON CALIFORNIA PH.SVCS-FAX LINE 0015340 42125 37.89 4/8/2010 89343 VERIZON CALIFORNIA PH.SVCS-DBC 0015333 42125 263.71 $50.00 4/8/2010 VERIZON CALIFORNIA PH.SVCS-GENERAL 0014090 42125 30.06 4/8/2010 89344 VERIZON CALIFORNIA PH.SVCS-GENERAL 0014090 42125 829.29 $6.00 4/812010 IVERIZON CALIFORNIA PH.SVCS-HERITAGE PK 1 0015340 1 42125 1 77.82 4/8/2010 89340 WAXIE SANITARY SUPPLY SUPPLIES -DBC 0015333 41200 192.81 $1,793.21 4/8/2010 WAXIE SANITARY SUPPLY SUPPLIES -PARKS 0015340 41200 28.09 4/8/2010 89342 WAXIE SANITARY SUPPLY SUPPLIES -DBC 0015333 41200 214.01 $99.00 4/812010 WAXIE SANITARY SUPPLY SUPPLIES -PARKS 0015340 41200 302.76 4/812010 89343 WAXIE SANITARY SUPPLY SUPPLIES -DBC 0015333 41200 1,055.54 $50.00 4/812010 1 89341 IFENG WU IRECREATION REFUND 001 134780 1 65.001 $65.00 4/1/2010 PAYROLL TRANSFER 112 10200 8,579.27 4/8/2010 1 89342 IWEN XU IRECREATION REFUND 1001 1 34780 1 99.001 $99.00 4/1/2010 PAYROLL TRANSFER PAYROLL TRSFR - PP07 125 10200 811.57 4/812010 1 89343 JELIZABETTE YAMBAO 1FACILITY REFUND-PANTERA 1 001 1 23002 1 50.001 $50.00 4/8/2010 1 89344 IJESSICA YING ICONTRACT CLASS -SPRING 1 0015350 1 45320 1 6.001 $6.00 4/1/2010 1 WT 124 JUNION BANK OF CALIFORNIA, NA DBC LEASE - 04/10 1 0014090 1 42140 1 25,739.501 $25,739.50 4/1/2010 WT 125 PAYROLL TRANSFER P/R TRANSFER - PP 07 001 10200 152,346.94 $164,908.26 4/1/2010 PAYROLL TRANSFER 112 10200 8,579.27 4/1/2010 PAYROLL TRANSFER PAYROLL TRSFR - PP07 115 10200 2,700.01 4/1/2010 PAYROLL TRANSFER PAYROLL TRSFR - PP07 125 10200 811.57 Page 13 City of Diamond Bar - Check Register 03/31/10 thru 04/14/10 Check Date Check Number Vendor Name Transaction Description Fund/ Dept Acct # Amount Total Check Amount 4/1/2010 WT 125... PAYROLL TRANSFER PAYROLL TRSFR - PP07 155 10200 1 470.47 $164,908.26... $432,606.69 Page 14 Agenda # 6.3 Meeting Date: April 20, 2010 CITY COUNCIL jnr au�'° AGENDAREPORT TO: Honorable Mayor and Members of the City Council VIA: James De Stefano, City Man(9 TITLE: Award of contract for auditing services for Fiscal Years 2009-2010 to 2011-2012, with the option to renew for an additional two years. RECOMMENDATION: Approve a contract for auditing services to Lance, Soll & Lunghard, L.L.P. for FY09-10 ($21,750), FYI 0-11 ($21,750), FYI 1-12 ($22,400), with the option to renew for an additional two years. FINANCIAL IMPACT: Each year funds are included in the general fund adopted budget for auditing services. There is currently a balance of $4,500 to cover any costs that will be incurred this fiscal year as a result of the interim field work. FYI 0-11 Budget will include a line item to cover the balance of the cost as well as a portion of the following year's cost. BACKGROUND: Each year the City is required to have an independent audit of its financial records performed. It has been the practice to go out for bid on these services at least every five years. DISCUSSION: The City's contract for independent auditors with Diehl, Evans, and Co. L.L.P. ended with the FY08- 09 audit and completion of the Comprehensive Annual Financial Report and Single Audit Report. As a result it was necessary to send out a request for proposal for auditing services. The request for proposal was sent out to seven highly qualified accounting firms who have as a focus governmental accounting. The City received six responses to the RFP. A committee consisting of staff from the Finance Department and City Manager's Office reviewed the proposals. All of the firms were qualified and appeared to be able to perform the necessary tasks. Although Lance, Soll, & Lunghard, LLP was second to the lowest bidder, after careful consideration the recommendation by the committee is to award a contract to them. This firm's year round concentration is on governmental accounting providing a great resource to City staff. They participate in the various governmental accounting organizations such as the GFOA and CSMFO by providing training to the membership of these organizations. The firm is also highly recommended by other cities who used their services. The following is the summary of the proposed fees provided by each of the participating firms: Firm Name FY09-10 Bid FY10-11 Bid FY11-12 Bid FYI 2-13 Option FY13-14 Option Caporicci & Larson, CPAs $21,360 $21,775 $22,295 $22,295 $22,295 Lance, Soil, & Lunghard, LLP $21,750 $21,750 $22,400 $23,070 $23,760 Diehl, Evans, and Company $23,100 $23,800 $24,515 $25,250 $26,008 Vavrinek, Trine, Day & Co. $23,570 $23,570 $24,270 $24,998 $25,748 Teaman, Ramirez & Smith, Inc. $24,000 $24,800 $25,500 $26,265 $27,053 Mayer Hoffman McCann P.0 $30,240 $31,050 $31,860 $32,657 $33,473 PREPARED BY: Linda Magnuson REVIEWED BY: Departnierg Head Asst. City Manager Attachments: Professional Services Agreement, Exhibit A — Proposal, for Audit Services Exhibit B — Cost Proposal PROFESSIONAL SERVICES AGREEMENT This Agreement is made and entered into this 20th day of _6pL 2010, between the City of Diamond Bar, a Municipal Corporation (hereinafter referred to as "CITY") and Lance, Soll & Lunghard, CPA. (hereinafter referred to as "AUDITORS"). A. Recitals. (i) CITY has heretofore issued its Request for Proposal ("RFP") pertaining to the performance of professional services with respect to financial and compliance auditing services (hereinafter referred to as "auditing services") and by this reference made a part hereof. (ii) AUDITORS have now submitted their proposal for the performance of such services, a full, true and correct copy of which is attached hereto as Exhibit "A" and by this reference made a part hereof. (iii) AUDITORS have also submitted their separate cost bid for the performance of such services, a full, true and correct copy of which is attached hereto as Exhibit "B" and by this reference made a part hereof. (iv) CITY desires to retain AUDITORS to perform auditing services necessary to render advice and assistance to CITY,_CITY's City Council and staff. (v) AUDITORS represent that they are qualified to perform such services and are willing to perform such auditing services as hereinafter defined. NOW, THEREFORE, it is agreed by and between CITY and AUDITORS as follows: B. Agreement. Definitions: The following definitions shall apply to the following terms, except where the context of this Agreement otherwise requires: (a) Auditing Services: The performance of auditing services described in the RFP, but not limited to the preparation of reports and documents, the presentation, both oral and in writing, of such reports, and documents to the City as required and attendance at any and all work sessions, public hearings and other meetings conducted by CITY with respect to the auditing services. (b) Scope of Auditing Services: The scope of the auditing services is included in the Agreement by reference to the RFP and Lance, Soll and Lunghard, CPA. proposal. 2. (c) Completion of Audit Services: The date of completion of all phases of the auditing services, including any and all procedures, documents, reports, and meetings is included in Exhibit "A". Time limits set for the may be extended upon approval of the CITY. (d) Cost: The cost of auditing services is included by reference in Exhibit "B", which includes a fixed fee for each component section of the annual audit and hourly rates for additional work. (e) Term of Engagement : The basic term of this engagement shall be for the years ended 2010, 2011, and 2012. City and Auditiors may mutually agree to extend the agreement to fiscal years ended June 30, 2013 and 2014 if cost to the CITY does not exceed the amounts listed in Exhibit B. AUDITORS agree as follows: (a) AUDITORS shall forthwith undertake and complete the audit in accordance with Exhibit "A" hereto and all in accordance with Federal, State and CITY statues, regulations, ordinances and guidelines, and professional standards, all to the reasonable satisfaction of CITY. (b) AUDITORS shall supply copies of all reports, plans and documents (hereinafter collectively referred to as "reports") Copies of the documents shall be in such numbers as are required CITY. (c) AUDITORS shall, at AUDITORS' sole cost and expense, secure and hire such other persons as may in the opinion of AUDITORS, be necessary to comply with the terms of this Agreement. In the event any such other persons are retained by AUDITORS, AUDITORS hereby warrants that such persons shall be fully qualified to perform services required hereunder. AUDITORS further agree that no subcontractor shall be retained by AUDITORS except upon the prior written approval of CITY. 3. CITY agrees as follows: (a) To pay AUDITORS a fixed fee, based on reference to the hourly rates set forth in Exhibit "B", for the performance of the services required hereunder. This sum shall cover the cost of all staff time and all other direct and indirect costs or fees, including the work of employees, consultants and subcontractors to AUDITORS. Payment to AUDITORS, by CITY, shall be made in accordance with the schedule set forth below. (b) Payments to AUDITORS shall be made by CITY in accordance with the invoices submitted by AUDITORS, on a monthly basis, and such invoices shall be paid within a reasonable time after said invoices are received by CITY. All charges shall be in accordance with AUDITORS' proposal either with respect to hourly rates or lump sum amounts for individual tasks. In no event, however, will said invoices exceed 95% of individual task totals described in Exhibit "A". (c) AUDITORS agree that, in no event, shall CITY be required to pay to AUDITORS any sum in excess of 95% of the maximum payable hereunder prior to receipt by CITY of all final reports, as described herein acceptable in form and content to CITY. Final payment shall be made not later than 60 days after presentation of final documents and acceptance thereof by CITY. (d) Additional services: Payments for additional services requested, in writing, by CITY, and not included in AUDITORS' proposal as set forth in Exhibit "A" hereof, shall be paid on a reimbursement basis in accordance with the fee schedule set forth in said Exhibit "B". Charges for additional services shall be invoiced on a monthly basis and shall be paid by CITY within a reasonable time after said invoices are received by CITY. 4. CITY a rees to provide to AUDITORS: (a) Information and assistance as set forth in RFP and Exhibit "A" hereto. (b) Photographically reproducible copies of records, reports, and other information, if available, which AUDITORS consider necessary in order to complete the Project. (c) Such information as is generally available from CITY files applicable to the engagement. (d) Assistance, if necessary, in obtaining information from other governmental agencies and/or private parties. However, it shall be AUDITORS' responsibility to make all initial contact with respect to the gathering of such information. 5. Ownership of Documents: All documents, data, studies, surveys, copies and reports other than working papers obtained and/or prepared by AUDITORS pursuant to this Agreement shall be considered the property of CITY and, upon payment for services performed by AUDITORS, such reports and other identified materials shall be delivered to CITY by AUDITORS. AUDITORS may, however, make and retain such copies of said documents and materials as AUDITORS may desire. Working papers shall be maintained for a minimum of three years and made available to CITY for review upon written, reasonable request by CITY or other governmental agencies furnishing federal funding to the CITY. 6. Termination: This Agreement may be terminated by CITY upon the giving of a written "Notice of Termination" to AUDITORS at least thirty (30) days prior to the date of termination specified in said Notice. In the event this Agreement is so terminated, AUDITORS shall be compensated at AUDITORS' applicable hourly rates as set forth in Exhibit "B", on a pro -rata basis with respect to the percentage of the Engagement completed as of the date of termination. In no event, however, shall AUDITORS receive more than the maximum specified in paragraph 3(a), above. AUDITORS shall provide to CITY any and all documents, data, studies, surveys, and reports other than working papers, whether in draft or final form, prepared by AUDITORS as of the date of termination. AUDITORS may not terminate this Agreement except for cause. Notices and Designated Representatives: Any and all notices, demands, invoices and written communications between the parties hereto shall be addressed as set forth in this paragraph 7. The below named individuals, furthermore, shall be those persons primarily responsible for the performance by the parties under this Agreement: City Manager Richard K. Kikuchi City of Diamond Bar Lance, Soil, and Lunghard, CPAs 21825 Copley Dr., 203 N. Brea Blvd, Suite 203 Diamond Bar, CA 91765-4177 Brea, CA 92821 Any change in this designation shall be made known to AUDITORS by written notice. AUDITORS shall assign Richard K. Kikuchi as the "Engagement Partner" for services provided under this Agreement. Any change in this designation shall be made know to CITY by written notice. Any such notices, demands, invoices and written communications, by mail, shall be deemed to have been received by the addressee forty-eight (48) hours after deposit thereof in the United States mail, postage prepaid and properly addressed as set forth above. 8. Insurance: AUDITORS shall neither commence work under this Agreement until it has obtained all insurance required hereunder in a company or companies acceptable to CITY nor shall AUDITORS allow any subcontractor to commence work on a subcontract until all insurance required of the subcontractor has been obtained. AUDITORS shall take out and maintain at all time during the term of this Agreement the following policies of insurance: (a) Workers' Compensation Insurance: Before beginning work, AUDITORS shall furnish to CITY a certificate of insurance as proof that it has taken out full workers' compensation insurance for all persons whom it may employ directly or through subcontractors in carrying out the work specified herein, in accordance with the laws of the State of California. In accordance with the provisions of California Labor Code Section 3700, every employer shall secure the payment of compensation to his employees. AUDITORS prior to commencing work, shall sign and file with CITY a certification as follows: "I am aware of the provisions of Section 3700 of Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this Agreement' (b) Public Liability and Property Damage: Throughout the term of this Agreement, at AUDITORS' sole cost and expense, AUDITORS shall keep, or cause to be kept, in full force and effect, for the mutual benefit of CITY and AUDITORS, comprehensive, broad form, general public liability and automobile insurance against claims and liabilities for personal injury, death, or property damage arising from AUDITORS' activities, providing protection of at least One Million Dollars ($1,000,000.00) for property damage, bodily injury or death to any one person or for any one accident or occurrence and at least One Million Dollars ($1,000,000.00) aggregate. (c) Errors and Omissions: AUDITORS shall take out and maintain at all times during the life of this Agreements a policy or policies of insurance concerning errors and omissions ("malpractice") providing protection of at least One Million Dollars ($1,000,000) for errors and omissions with respect to loss arising from actions of AUDITORS performing audit services hereunder on behalf of CITY. (d) General Insurance Requirements: All insurance required by express provision of this Agreement shall be carried only in responsible insurance companies licensed to do business in the State of California and policies required under paragraphs 8.(a) and (b) shall name as additional insureds CITY, its elected officials, officers, employees, agents and representatives. All policies shall contain language, to the effect that: (1) the insurer waives the right of subrogation against CITY and CITY's elected officials, officers, employees, agents and representatives; (2) the policies are primary and noncontributing with any insurance that may be carried by CITY; and (3) they cannot be canceled or materially changed except after thirty (30) days' notice by the insurer to CITY by certified mail. AUDITORS shall furnish CITY with copies of all such policies promptly upon receipt of them, or certificate evidencing the insurance. AUDITORS may effect for its own account insurance not required under this Agreement. 9. Indemnification: AUDITORS shall defend, indemnify and save harmless CITY, its elected and appointed officials, officers, agents and employees, from all liability from loss, damage or injury to persons or property, including the payment by AUDITORS of any and all legal costs and attorneys' fees, in any manner arising out of the acts and/or omissions of AUDITORS pursuant to this Agreement, including, but not limited to, all consequential damages, to the maximum extent permitted by law. 10. Assignment: No assignment of this Agreement or of any part or obligation of performance hereunder shall be made, either in whole or in part, by AUDITORS without the prior written consent of CITY. 11. Independent Contractor: The parties hereto agree that AUDITORS and its employees, officers and agents are independent contractors under this Agreement and shall not be construed for any purpose to be employees of CITY. 12. Governinq Law: This Agreement shall be governed by and construed in accordance with the laws of the State of California. 13. Attorney's Fees: In the event any legal proceeding is instituted to enforce any term or provision of the Agreement, the prevailing party in said legal proceeding shall be entitled to recover attorneys' fees and costs from the opposing party in an amount determined by the court to be reasonable. 14. Entire Agreement: This Agreement supersedes any and all other agreements, either oral or in writing, between the parties with respect to the subject matter herein. Each party to this Agreement acknowledges that no representation by any party which is not embodied herein nor any other agreement, statement, or promise not contained in this Agreement shall be valid and binding. Any modification of this Agreement shall be effective only if it is in writing signed by all parties. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first set forth above: APPROVED AS TO FORM: City Attorney AUDITORS Richard K. Kikuchi Lance, Soil and Lunghard, CPA CITY OF DIAMOND BAR James DeStefano, City Manager Exhibit A oz 0 0 We're s n CITY OF DIAMOND BAR PROPOSAL TO PROVIDE ANNUAL INDEPENDENT AUDIT SERVICES FOR FISCAL YEARS 2009-2010 THROUGH 2011-2012 PROPOSAL TO PROVIDE ANNUAL INDEPENDENT AUDIT SERVICES FOR FISCAL YEARS 2009-2010 THROUGH 2011-2012 Prepared by: Richard K. Kikuchi, CPA, Partner richard.kikuchi@lslcpas.com Lance, Soli S Lunghard, LLP Certified Public Accountants 203 North Brea Boulevard, Suite 203 Brea, California 92821 (714) 672-0022 LSE01: CExrrxiEn /uDk ACcOUFMwii ■ February 26, 2010 I Contact Person: Richard K. Kikuchi, CPA, Partner richard.kikuchi@lslcpas.com CITY OF DIAMOND BAR PROPOSAL TO PROVIDE PROFESSIONAL AUDITING SERVICES TABLE OF CONTENTS Page No. Letter of Transmittal............................................................. 1 Profile of the Proposer Introduction to Lance, Soll & Lunghard, LLP...................................................................... 3 Regional Accounting Firm and Independence................................................................... 3 Locationof Offices.............................................................................................................. 3 ComputerCapabilities......................................................................................................... 3 Numberof Personnel.......................................................................................................... 3 License to Practice in California......................................................................................... 4 Rangeof Activities.............................................................................................................. 4 PeerReview........................................................................................................................ 4 DisciplinaryAction............................................................................................................... 4 Prior Engagements with the City of Diamond Bar.............................................................. 4 Summary of Proposer's Qualifications and Experience Personnel Assigned to the Audit......................................................................................... 5 StaffAuditors....................................................................................................................... 5 ContinuingEducation.......................................................................................................... 5 Firm Qualifications and Experience CSMFO and GFOA Awards Program........................................................................... 6 Federal Single Audit - OMB Circular A-133.................................................................. 6 References of Governmental Clients.................................................................................. 7 Similar Engagements with Other Governmental Entities ................................................... 7 Scope Section Proposed Segmentation of the Engagement..................................................................... 8 Level of Staff and Number of Hours to be Assigned.......................................................... 8 RiskBased Auditing............................................................................................................ 9 Approach to Understanding Internal Control Structure...................................................... 9 Extentof EDP Software...................................................................................................... 9 Analytical Procedures....................................................................................................... 10 Approach in Determining Laws and Regulations Subject to Audit ................................... 10 Services to be Provided ............ ................. 10 CITY OF DIAMOND BAR PROPOSAL TO PROVIDE PROFESSIONAL AUDITING SERVICES TABLE OF CONTENTS Page No. Audit Fee Schedule (separate sealed envelope) Appendices Appendix A - Listing of Governmental Audit Clients......................................................... 12 Appendix B — Personnel Resumes Richard K. Kikuchi, CPA, Partner............................................................................... 13 Debbie A. Harper, CPA, Audit Manager..................................................................... 15 Troy O. Grunklee, Audit Senior................................................................................... 17 Appendix C - Peer Review Report .................................................................................... 18 �: LSE . CERTIFIED PUBLIC ACCOUNTANTS • Brandon W. Burrows, CPA • Donald L. Parker, CPA • Michael K. Chu, CPA • David E. Hale, CPA, CFP A Professional Corporation • Donald G. Slater, CPA • Richard K. Kikuchi, CPA • Susan F. Matz, CPA • Shelly K. Jackley, CPA February 26, 2010 City of Diamond Bar Linda G. Magnuson, Finance Director 21825 Copley Dr. Diamond Bar, CA 91765 Lance, Soil & Lunghard, LLP is pleased to respond to your Request for Proposal for Professional Auditing Services. As a leader in the field of governmental accounting and auditing, we appreciate this opportunity given us to present our professional qualifications. Because of our extensive municipal experience, dedication to excellence and determination to retain the brightest and most talented professionals, we are certain that Lance, Soil & Lunghard, LLP is the most qualified accounting firm to provide professional auditing services to the City of Diamond Bar. The annual services that would be provided for the City of Diamond Bar, for the fiscal years ending June 30, 2010 through June 30, 2012, with an option of two additional years, would be as follows: 31 1. Perform a financial audit of the Comprehensive Annual Financial Report of the City of 41 Diamond Bar, which will encompass the blended component units. We understand that we will be preparing this report other than the Introductory Section, Management Discussion and Analysis, and the Statistical Section. Our audit would express an opinion as to whether the financial statements and associated notes conform to accounting principles generally accepted in the United States of America. The final issuance of the audit opinion for the Comprehensive Annual Financial Report will be made available to the City of Diamond Bar no later than November 15th 2. Perform a Single Audit, when applicable, for the City of Diamond Bar. We understand that Lance, Soil, and Lunghard LLP will prepare this report. Our audit will be prepared in accordance with the provisions of OMB CircularA-133. The final issuance of the Single audit report will be made available to the City of Diamond Bar no later than November 15th 3. Perform a review and make recommendations on the internal control structure, which consists of the Control Environment, Accounting System and Control Procedures. Annually, we will prepare and issue the SAS 115 "management letter". Also, we shall make an immediate and written report of any irregularities and illegal acts or indication of illegal acts coming to our attention. 4. Perform procedures and prepare a report based on the review of the procedures applied to the City of Diamond Bar Appropriations Limit worksheets and calculation. Lance, Soil & Lunghard, LLP 203 North Brea Boulevard • Suite 203 • Brea, CA 92821 • TEL: 714.672.0022 • Fax: 714.672.0331 www.islepas.com a 41185 Golden Gate Circle • Suite 103 • Murrieta, CA 92562 • TEL: 951.304.2728 • Fax: 951.304.3940 LSE:O:: CENTITIEO PUSIIC ACCOUNTANTS City of Diamond Bar Linda G. Magnuson, Finance Director February 26, 2010 The sections that follow describe the benefits your organization would receive from Lance, Soil & Lunghard, LLP. We are committed to provide the services discussed above in accordance with the timetable specified in your request for proposal. This proposal is a firm and irrevocable offer for the fiscal years ending June 30, 2010 through June 30, 2012, with the option of two additional years, for ninety days. For purposes of this proposal, Richard K. Kikuchi, Partner is authorized to make representations for our firm. I can be reached at 203 North Brea Boulevard, Suite 203, Brea, CA 92821 or by phone a (714) 672-0022. Very truly yours, Richard �K.Kikuchi, Partner LANCE, SOLL & LUNGHARD, LLP 2 PROFILE OF THE PROPOSER INTRODUCTION OF LANCE, SOLL, & LUNGHARD, LLP Lance, Soil & Lunghard, LLP is a regional public accounting firm that has met the auditing needs of governmental entities throughout California for 80 years. This experience has led to the development of efficient procedures that provide numerous client benefits. Our clients have grown to understand that an audit from Lance, Soil & Lunghard, LLP provides them with a wealth of knowledge, confidence and value added services. For this and many other reasons, Lance, Soil & Lunghard, LLP has consistently been named one of the "Top Accounting Firms" in Orange County by the Orange County Business Journal. REGIONAL ACCOUNTING FIRM AND INDEPENDENCE We meet the independence requirements as defined by Auditing Standards Generally Accepted in the United States of America and the U.S. General Accounting Office's Government Auditing Standards (1994). We are a partnership consisting of eight partners who do not own any other business organization that has in the past, or will in the future, be providing services, supplies, materials or equipment to the City of Diamond Bar. Lance, Soil & Lunghard, LLP will provide written notice of any professional relationship entered into during the period of the proposed agreement. LOCATIONS OF OFFICES We have two offices in the Southern California area which provide services to the western region of the United States. Our headquarters are located in Orange County in the City of Brea, California and our Temecula Valley office is located in the City of Murrieta, California. The audit performed for the City of Diamond Bar will be conducted from the Orange County office. COMPUTER CAPABILITIES Our offices have an extensive array of computer capabilities to meet every need, and to prepare and deliver all reports required by the City of Diamond Bar. We utilize, on a daily basis, a variety of software, such as but not limited to Microsoft Word, Excel, PowerPoint, Outlook, and Adobe Professional. We perform paperless audits for all our engagements for efficiency and convenience for both our clients and our services provided. We have the capability of assembling Comprehensive Annual Financial Reports as bound hard copies and in colored PDF format. Lance, Soil, and Lunghard would work closely with the staff of the City of Diamond Bar to meet any and all needs to fulfill your goals of presenting various reports and letters. NUMBER OF PERSONNEL We presently have eight partners. Professional staff consists of seven managers, eleven seniors and sixteen associates. Governmental staff consists of three partners, five managers, four seniors and ten staff auditors. Local government expertise in the Orange County and Temecula Valley offices are lead by the following partners with over 85 years of combined governmental expertise: Donald L. Parker, CPA, Partner Michael K. Chu, CPA, Partner Richard K. Kikuchi, CPA, Partner 3 PROFILE OF THE PROPOSER (Continued LICENSE TO PRACTICE IN CALIFORNIA We are a public accounting firm licensed by the State of California, Department of Consumer Affairs, as a Public Accounting Partnership. All of our partners are Certified Public Accountants licensed by the State of California. As a firm, we are members of the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants. All key staff to be assigned to this engagement is or will be licensed by the State of California to �- practice as Certified Public Accountants. RANGE OF ACTIVITIES Our activities overall cover auditing, compilation and review services, management services and income tax preparation. Approximately 60% of our practice deals with governmental auditing and related services. Generally, our municipal services break down into the following major classifications: Financial Auditing: Governmental Entities (See Appendix A for an additional breakdown) Management Services: Agreed Upon Procedures Compliance Reviews (AQMD, Franchise Fee, TOT, Lease Agreements, etc.) PEER REVIEW We are members of the American Institute of Certified Public Accountant's Private Companies ® Practice Section, which has the requirement for peer review along with Generally Accepted Government Auditing Standards. We have participated in the peer review program since its inception and have undergone several peer reviews. The first review was conducted by Arthur Young & Company (now Ernst & Young) and the most recent by Johnston and Company. Overall, they confirmed what we already knew, that our approach and procedures are in compliance with technical and professional pronouncements. All of these peer reviews covered governmental engagements. engagements. Our most recent peer review, conducted by Johnston & Company, is included in Appendix C to this proposal. DISCIPLINARY ACTION There have been no disciplinary actions against our organization since its inception. All of our Single Audit reports are desk reviewed either by the Federal cognizant agency or the State Controller's Office acting as the Oversight Agency. We have never had a report rejected by any of these agencies. In fact, we are highly regarded and recognized by the staff of the State Controller's Office as a firm that always submits top quality reports. PRIOR ENGAGEMENTS WITH THE CITY OF DIAMOND BAR Lance, Soll & Lunghard, LLP has not audited the City of Diamond Bar during the past five fiscal years. 4 SUMMARY OF PROPOSER'S QUALIFICATIONS AND EXPERIENCE (in addition to minimum qualifications) PERSONNEL ASSIGNED TO THE AUDIT The most critical component in the successful completion of an audit is the personnel assigned to carry out the responsibilities. We have assembled a Lance, Soil & Lunghard, LLP Team composed of individuals with the optimum mix of talents. The individuals assigned have experience in performing the tasks for which they are responsible, as well as familiarity with all municipal accounting operations. In addition, each has developed extensive skills in a variety of other complementary subjects through their work with clients in other industries. Thus, the experience gained on previous assignments can be applied and tailored to the unique needs of your organization. The partners at Lance, Soil & Lunghard, LLP are routinely an integral part of the audit process and will be overseeing and supervising staff personnel in the field. For the City of Diamond Bar, the personnel assigned to the engagement would be as follows: Partner Richard K. Kikuchi, CPA Audit Manager Debbie A. Harper, CPA Audit Senior Troy O. Grunklee Professional Staff 1-2 Resumes for these individuals are located in Appendix B. STAFF AUDITORS The firm's policy of assigning Senior/In-charges to an engagement requires that the Senior/In- charge have at least two years of municipal auditing experience. All professional staff receive year round extensive audit training in-house. Lance, Soil, and Lunghard LLP does NOT believe in solely "on-the-job" training in the field. Each Senior/In-charge must have demonstrated a high degree of understanding of municipal accounting and auditing, as well as of the firm's overall client philosophy. Continuity of each engagement is also an important factor in assigning any staff to an engagement. Any changes in personnel at the Senior/in-charge level or above will be approved by the City of Diamond Bar. Lance, Soil & Lunghard, LLP's philosophy is to provide quality audit services with minimal disruption to the City's staff. Our focused efforts to obtain and retain quality staff have further enabled us to provide this to our clients. CONTINUING EDUCATION As a firm policy, and in compliance with the continuing education requirements promulgated by the AICPA, General Accounting Office and the California Society of CPAs, all our staff auditors (certified and non -certified) meet the requirement of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two year period. For our educational programs, we utilize in-house seminars, California Society of CPAs attendance courses, AICPA training video tapes, and self -study AICPA/California Society of CPAs materials. Our formal education program was reviewed by independent firms during our peer review process and no exceptions were noted. 5 SUMMARY OF PROPOSER'S QUALIFICATIONS AND EXPERIENCE (in addition to minimum qualifications) (Continued) FIRM QUALIFICATIONS AND EXPERIENCE CSMFO and GFOA Award Programs We prepare the financial statements and footnote disclosures for most of our clients that have received the GFOA award. All of our governmental partners, managers and seniors have been closely involved in the preparation of these reports. Our government clients who are presently receiving these awards are as follows: City of Walnut City of Chino Hills City of Glendora City of Ontario City of South Pasadena City of Vista Foothill Transit Authority City of EI Monte City of Fontana City of Murrieta City of Rancho Cucamonga City of Manhattan Beach San Diego County Water Authority Three Valleys Municipal Water District Federal Single Audit — OMB Circular A-133 City of Yorba Linda City of Temecula City of Claremont City of Azusa City of Colton City of Monrovia City of Simi Valley City of Emeryville City of Hawthorne City of La Quinta City of Malibu City of Thousand Oaks City of West Hollywood We perform single audit services for all of our cities that have federal grants and meet the requirements as stipulated under OMB CircularA-133. These engagements fully comply with OMB Circular A-1 33 and include preparing the Schedule of Federal Expenditures along with all required opinions. Our procedures in this area were reviewed by the State Controller's Office acting in their capacity as cognizant agency and we were given high marks for our approach and documentation. Presently, we perform or have performed the Federal Single Audits for the following government clients: City of Yorba Linda City of Walnut City of Temecula City of Fontana City of La Quinta City of Bell Gardens City of Murrieta City of Colton City of Thousand Oaks City of EI Monte City of Vista 0 City of Glendora City of San Dimas City of Simi Valley City of Monrovia City of Rancho Cucamonga City of Azusa City of Imperial Beach City of Hawthorne City of West Hollywood City of Coronado SUMMARY OF PROPOSER'S QUALIFICATIONS AND EXPERIENCE (in addition to minimum qualifications) (Continued) REFERENCES OF GOVERNMENTAL CLIENTS :X As previously mentioned, we have 80 years of experience auditing local governments (including cities, special districts, redevelopment agencies, joint powers authorities and single audits performed under OMB Circular A-133). A complete listing of current audit clients, along with phone numbers of contact personnel and references as to services provided, is contained in Appendix A to this proposal. We welcome you contacting any or all of these to get their opinion on the services we provide. :0 SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENTAL ENTITIES Similar engagements performed would be as follows: City of Walnut - Audit and preparation of the Comprehensive Annual Financial Report (CAFR). Also involves the audit and preparation of the Improvement Agency. Last audit performed was for June 30, 2009. Total hours were 355. The engagement partner is Mr. Richard K. Kikuchi and Michael K. Chu. Contact person: Ms. Christine Londo, Finance Director (626) 358-0018. City of Chino Hills - Audit and preparation of a Comprehensive Annual Financial Report (CAFR) which receives the National award. Also involves the audit and preparation of the City's State Controllers Report, Special Investments Report, and the Tres Hermanos Conservation Authority Financial Statements. Last audit performed was for June 30, 2009. Total hours were 525. The engagement partner is Mr. Richard K. Kikuchi and Michael K. Chu. Contact person: i Ms. Judy Lancaster, Finance Director (909) 364-2600. i City of Yorba Linda - Audit and preparation of a Comprehensive Annual Financial Report (CAFR) which receives the National award. Also involves the audit and preparation of the Redevelopment Agency, and Single Audit. Last audit performed was for June 30, 2009. Total hours were 452. Engagement partners are Mr. Richard Kikuchi. Contact person: Mr. David ® Christian. Finance Director (714) 961-7141 or Ms. Pamela Parisien, Accounting Manager (714) 961-7142. City of Glendora - Audit and preparation of a Comprehensive Annual Financial Report (CAFR) which receives the National award. Also involves the annual audit and preparation of the Redevelopment Agency, Single Audit, and the Investment Review. Last audit performed was for June 30, 2009. Total hours were 473. Engagement partner is Mr. Richard Kikuchi and Don Parker. Contact person: Mr. Josh Betta, Finance Director (626) 914-8241. City of Claremont - Audit and preparation of a Comprehensive Annual Financial Report (CAFR) which receives the National award. Also involves the annual audit and preparation of the Redevelopment Agency, Single Audit, TDA Financial Statements and the Title IIIC Contract Financial Statements. Last audit performed was for June 30, 2009. Total hours were 552. Engagement partner is Mr. Richard Kikuchi. Contact person: Mr. Adam Pirrie, Finance Director (909) 399-5328. A complete listing of current government audit clients is contained in Appendix A to this proposal. We welcome you contacting any or all of these to get their opinion on the services we provide. 7 SCOPE SECTION PROPOSED SEGMENTATION OF ENGAGEMENT We utilize a standardized governmental audit program which we will customize to the City of Diamond Bar's operations. The customization is necessary to accommodate specific client circumstances and to recognize differences in local statutes, ordinances, and similar unique characteristics. Our audit programs are organized using the financial statement (balance sheet) category approach. This approach takes full advantage of our accumulated experience. The primary benefit is that the risk of omitting important procedures is substantially reduced and any changes implemented by governing boards, such as GASB, FASB, SAS, etc, is easily updated to the appropriate audit section. We believe that this approach tends to be the most effective and efficient for an entity such as the City of Diamond Bar. In a standardized program, the audit procedures are listed in the most logical sequence, and that improves efficiency. The savings in effort and time gained by using a standardized audit program can free an auditor's attention for unusual or difficult situations that may arise. The audit programs are designed to increase audit efficiency by linking financial statement assertions, audit objectives, and procedures that are basic to most governmental audit engagements. We currently work with a variety of financial systems, which include, but is not limited to, IFAS, Fund Balance, Sunguard, Eden, JD Edwards, AS400, Munis, People Soft, Springbrook, etc., which enables us to seamlessly become familiar with client operations. LEVEL OF STAFF AND NUMBER OF HOURS TO BE ASSIGNED The level of personnel assigned to the engagements and number of hours estimated to be spent on each proposed segment is as follows: City of Diamond Bar Audit and Related Reports COMPREHENSIVE ANNUAL FINANCIAL REPORT Segment Partners Managers Senior Staff Total 1 _ Cash - - 2.0 6.0 8.0 Receivables - - 2.0 10.0 12.0 Capital Assets - - 2.0 5.0 7.0 Accounts Payable - - 2.0 8.0 10.0 Long -Term Debt - - 1.0 3.0 4.0 Fund Equity - - 2.0 - 2.0 Grants - - 15.0 - 15.0 Disbursements - - 5.0 8.0 13.0 Revenue - - 5.0 10.0 15.0 Payroll - - - 5.0 5.0 Supervision/Planning 15.0 28.0 20.0 - 63.0 ® Reports/Review 5.0 10.0 20.0 5.0 40.0 Total 20.0 38.0 76.0 60.0 194.0 Q ® 8 SCOPE SECTION (Continued) SINGLE AUDIT Segment Partners Managers Staff Compliance 16.0 Planning Reports/Review Total 2.0 2.0 4.0 5.0 Total 16.0 2.0 11.0 2.0 4.0 23.0 29.0 . RISK BASED AUDITING Our approach is to obtain a complete understanding of your internal controls over financial recording. This allows us to estimate a risk of possible material misstatements to your financial . recording procedures and to adjust our audit to address those risks. By customizing our audit approach to your specific risk, we reach our goal of minimizing possible material misstatements . of financial reporting. This approach also provides a more efficient and effect audit because it is customized to your financial recording environment. APPROACH TO UNDERSTANDING INTERNAL CONTROL STRUCTURE To gain an understanding of the City of Diamond Bar's internal control structure, we will perform procedures as required by the new Auditing Standards, primarily SAS 104-111. This will include completing forms taken from the Local Government Publication of Practitioners Publishing Company. These forms meet the technical standards of the AICPA and allow us to document the major transaction classes, purpose of funds, and the structure of the City of Diamond Bar ' and to quantify materiality. We will review and make recommendations on the internal control structure, which consists of Control Environment, Accounting System and Control Procedures. We will review internal controls in the area of cash; investments; revenues and receivables; expenditures and accounts payable; payroll; inventories; property and equipment, debt and debt ' service; insurance and claims. In addition, during the performance of the Single Audit, if applicable, we will review areas of internal controls over federal grants, including general requirements; specific requirements; claims for advances and reimbursements and amounts claimed or used for matching. Based on the result of our review, we will issue a formal internal control report (SAS 115 Letter) that will identify any significant deficiencies and or material weaknesses. This report is required by the Government Auditing Standards issued by the Comptroller General of the United States, as well as the Single Audit Act. In addition, we will also issue a separate communication letter directly to the governing board. This letter would communicate any significant deficiencies or material weaknesses in the internal control system and other matters that we feel should be communicated to the governing board. All internal control issues will initially also be discussed with management of the City of Diamond Bar. EXTENT OF EDP SOFTWARE Our traditional approach is to "audit around" the computer, which means that we verify output by agreeing it, through our audit tests, with corresponding source input transactions. We do not use audit software that runs through the City's computer system, such as a test deck. We do use portable computers in the field, with spreadsheet software, for financial statement preparation and analytical procedures. All audits are paperless. Like other aspects of the internal control structure, computer controls are documented and analyzed for risk. We will consider whether specialized skills are needed to consider the effect of computer processing on the audit, to understand the internal control structure policies and procedures or to design and perform audit procedures. The decision to use a computer specialist in audit planning is a matter of our professional judgment. SCOPE SECTION (Continued) We will consider the complexity of the computer system and assess whether we can identify the types of misstatements that might occur. Generally, computer specialists are not needed on the audit of a City. However, if your system warrants a specialized in-depth review of various controls, then such a specialist would be engaged with permission of the City. ANALYTICAL PROCEDURES We use analytical procedures throughout our audit testing. Analytical procedures, such as current year to prior year and budget to actual, allow us to easily identify any unusual items or inconsistencies in your financial reporting. Analytical procedures are also used as an overall review of the financial information in the preliminary and final stages of the audit. These procedures are designed to assist us in planning our audit and in assessing the propriety of the conclusions reached and in the evaluation of the overall financial statement presentation. The procedures to be utilized consist of determining percentage increases and decreases between significant revenue, expenditure and balance sheet accounts, reading the financial statements and related notes, and we focus on overall relationships within the financial statements. Once determined, these are reviewed to determine if the changes appear reasonable or require further analysis. For all significant differences, explanations are obtained as to why the situation occurred and additional substantive procedures may be applied and related evidence gathered to resolve concerns and questions. APPROACH IN DETERMINING LAWS AND REGULATIONS SUBJECT TO AUDIT The Laws and Regulations that will be subject to audit test work are determined from the municipal code of the City of Diamond Bar (we would ask for access to a volume of the Code during our fieldwork), applicable sections of Governmental Code for the State of California and our extensive experience with governmental entities. SERVICES TO BE PROVIDED Perform a financial audit of the Comprehensive Annual Financial Report of the City of Diamond Bar, which include the City's blended component units. We understand that the City of Diamond Bar will prepare these reports. Our audit would express an opinion as to whether the financial statements and associated notes conform to accounting principles generally accepted in the United States of America. The final issuance of the audit opinion for the Comprehensive Annual Financial Report will be made available to the City of Diamond Bar no later than November 15tH We will also perform the Single Audit of the City of Diamond Bar in accordance with the provisions of OMB Circular A-133. We understand that Lance, Soil, and Lunghard LLP will prepare this report. The final issuance of the audit report will be made available to the City of Diamond Bar no later than November 15tH We will perform a report based on the review of the procedures applied by the City of Diamond Bar to the appropriation limit worksheets and calculation. All working papers and reports will be retained (at our expense) for a minimum of seven (7) years, unless we are notified by the City of Diamond Bar of the need to extend that retention period. 10 ■ ■ SCOPE SECTION (Continued) ■ SERVICES TO BE PROVIDED. (Continued) ■ We will review and make recommendations on the internal control structure, which consists of ■ Control Environment, Accounting System and Control Procedures. We will review internal controls in the area of cash; investments; revenues and receivables; expenditures and accounts ■ payable; payroll; inventories; property and equipment, debt and debt service; insurance and claims. Based on the result of our review, we will issue a formal internal control report that will ■ identify any significant deficiencies or material weaknesses. This report is required by the . Government Auditing Standards issued by the Comptroller General of the United States. In addition, we will also issue a separate management letter directly to the City's governing board. ® The letter would communicate any significant deficiencies or material weaknesses in the internal control system and other matters that we feel should be communicated to the governing board. . All internal control issues would also be discussed with management of the City. These letters will be finalized and made available to the City no later than November 15th along with the . Comprehensive Annual Financial Report. We will also provide the City of Diamond Bar with additional financial services, collectively known as retainer services. This will include services not strictly within the purview of the audit, including but not limited to rendering assistance in ensuring that appropriate financial controls and procedures are in place and maintained; providing the City with payroll tax advice and other pertinent tax law changes; updating City staff with the latest development in governmental accounting and reporting issues; and assisting the City in implementing new GASB requirements. These services will be provided up to a maximum of 20 hours per year at no additional cost to the City of Diamond Bar. 11 Appendix A LISTING OF GOVERNMENTAL AUDIT CLIENTS Client Contact Person Service Code Years Telephone * Azusa Mr. A. Kreimeier, Finance Director F ,S 12 626-812-5291 Ms. M. Green, Accounting Manager F, S 11 951-922-3118 —.13anning Bell Gardens Ms. K. Krause Finance Director F S 5 562-806-7708 Big Bear Lake Ms. K. Smith, Finance Manager F, S 12 909-866-5831 California City Ms. K. Bailey, Finance Director F,S 32 760-373-8661 Canyon Lake Ms. L. Moss, Commission Manager F 14 909-244-2955 *'Chino Hills Ms. J. Lancaster, Finance Director F, S 12 909-364-2600 * Claremont Mr. A. Pirrie, Acting Finance Director F, S 5 909-399-5460 Clearlake Mr. M. Vivrette, Finance Director F 1 707-994-8201 * Colton Ms. B. Johnson, Finance Director F, S 9 909-370-5000 Coronado Ms. L. Sueiter, Finance Director F, S 3 619-522-7300 Duarte Ms. K. Petersen, Finance Director F 3 626-357-7931 East Kern Airport District Mr. S. Witt, General Manager F, S 32 661-824-3341 * EI Monte Ms. L. DeDios, Interim Finance Director F, S 56 1 626-580-2025 * Emeryville Ms. K. Reid, Accounting Manager F, S 6 510-596-4352 * Fontana Ms. L. Strong, Director of Admin. Services F, S 16 909-350-6778 * Foothill Transit Authority Mr. R. Hasenohrl, Finance Director F S 5 626-967-2274 * Glendora Ms. E. Stoddard, Accounting Manager F, S 6 626-914-8238 * Hawthorne Mr. J. Pathirana, Commission Manager F, S 12 310-970-7923 Hidden Hills Ms. C. Pa Iia, Commission Clerk F 24 818-888-9281 Imperial Beach Mr. M. McGrane, Finance Director F 6 619-628-1361 Irwindale Mr. L. Nomura, Finance Director F 14 626-430-2200 La Mirada Ms. A. Travis, Commission Manager F, S 6 562-943-0131 * La Quinta Mr. J. Falconer, Finance Director F, S 3 760-777-7150 Lancaster Ms. B. Boswell, Finance Director F, S 19 661-723-6000 * Malibu Ms. R. Feldman, Finance Director F 6 310-456-2489 * Manhattan Beach Mr. B. Moe, Finance Director F 7 310-802-5553 Menifee Mr. W. Welch, Accountant F 1 951-672-6777 * Monrovia Mr. M. Alvarado, Director of Admin. Services F, S 9 626-932-5510 Montclair Mr. R. Beltran, Assist. Finance Director F, S 38 909-625-9418 * Murrieta Ms. J. Canfield, Finance Director F, S 18 951-698-1040 * Ontario Mr. G. Yee, Director of Admin. Services F, S 11 909-395-2000 Orange County LAFCO Mr. B. Aldrich F 2 714-834-2556 * Rancho Cucamonga Ms. T. Layne, Finance Officer F, S 32 909-989-1851 RDII!nq Hills Mr. J. Walker, Finance Director F 1 310-377-1521 Riverside County LAFCO Mr. G. S iliotis F 2 951-369-0631 San Bern County LAFCO Ms. K. Rollin s -McDonald F 2 909-383-9900 * San Diego County Water Authority Ms. L. Wade Controller F, S 4 858-522-6600 San Dimas Ms. B. Bishop, Finance Director F, S 49 909-394-6200 San Marino Ms. L. Bailey, Finance Director F 17 626-300-0700 * Simi Valley Ms. L. Garg, Dep Dir/Fiscal Services F, S 2 805-583-6747 South Pasadena Mr. C. Thai, Finance Director F 7 626-403-7250 * Temecula Ms. G. Roberts, Finance Director F, S 2 951-694-6430 * Thousand Oaks Mr. J. Adams Interim Finance Director F, S 2 805-449-2235 * Three Valles Water District Mr. R. Hansen, General Manager F 2 909-626-4631 * Vista Mr. D. Nielsen, Finance Manager F 1 760-639-6170 x1023 * Walnut Ms. C. Londo, Finance Director F 38 909-595-7543 * West Hollywood Mr. P. Arevalo, City Manager F, S 19 323-848-6400 * Wildomar Mr. G. Nord uist, Finance Director F 1 1 951-677-7751 * Yorba Linda Ms. P. Parisian, Accounting Manager F, S 10 714-961-7142 Service Codes: F - Financial Audit S - Single Audit of Federal Grants in accordance with OMB Circular A-133 * - Participates in Award Programs and has received or anticipates receiving outstanding award 12 RICHARD K. KIKUCHI, CPA ENGAGEMENT PARTNER Experience Appendix B Education: Bachelor of Arts Degree in Business Administration with an emphasis in Accounting - California State University, Fullerton 1985 License: Certified Public Accountant - California 1991 Continuing Total hours were 142 in last three years of which Education: 64 were in governmental accounting and auditing subjects. Mr. Kikuchi has met the Governmental Auditing Standards requirement for governmental CPE Memberships: California Society of Certified Public Accountants American Institute of Certified Public Accountants California Society of Municipal Finance Officers (Associate Member) Government Finance Officers Association (Associate Member) Over twenty years experience in governmental audits. He is currently involved on the following major municipal engagements. City of Azusa City of Big Bear Lake City of Colton City of Imperial Beach City of Yorba Linda City of Monrovia City of Malibu San Diego County Water Authority Orange County Sanitation District South Bay Cities Council of Governments City of Canyon Lake City of Yorba Linda City of Temecula City of Coronado City of Murrieta City of La Quinta City of Manhattan Beach City of Menifee City of Wildomar Foothill Transit Authority • This work entailed the preparation of the Comprehensive Annual Financial Report for those entities involved in the award programs of the California Society of Municipal Finance Officers and the Government Finance Officers Association of the United States and Canada. • Mr. Kikuchi has the responsibility for overseeing federal single audits for these and other clients of our firm. These audits have met the requirements of the OMB and have been desk reviewed by the State Controller's Office. 13 Appendix B Richard K. Kikuchi, CPA, Partner (Continued) Achievements: Mr. Kikuchi recently sat on the California State Board of Accountancy's Qualifications Committee, which is an advisory committee established to examine and to make recommendations for all applicants for the license of Certified Public Accountant. He currently serves as a technical reviewer for the Government Finance Officers Association (GFOA) and the California Society of Municipal Finance Officers (CSMFO). Mr. Kikuchi sat on the CSMFO Special Districts Technical Committee and teaches an Introductory Governmental Accounting course through the CSMFO Career Development Committee. 14 .17 DEBBIE A. HARPER, CPA AUDIT MANAGER Appendix B Education: Bachelor of Arts Degree in Business Administration with an emphasis in Accounting - California State University, Fullerton 2000 License: Certified Public Accountant — California 2005 Continuing Total hours were 132 in last three years of which 68 Education: were in governmental accounting and auditing subjects. Ms. Harper has met the Governmental Auditing Standards requirement for governmental CPE. Memberships: California Society of Certified Public Accountants American Institute of Certified Public Accountants California Society of Municipal Finance Officers (Associate Member) Government Finance Officers Association (Associate Member) Experience: Over nine years experience in governmental audits. Ms. Harper has demonstrated her talent in the area of municipal accounting and auditing. During her time with the firm, Ms. Harper has performed all phases of our municipal audits and made numerous presentations to City Councils, Boards of Directors and Audit Committees. She has been involved on the following engagements: City of Yorba Linda Ms. Harper has served as the Audit Manager on the City of Yorba Linda audit from fiscal years 2002-2003 through present. The City of Yorba Linda population is over 68,000, with neighboring cities of Brea, Placentia and Corona. As the Audit Manager, it has been her responsibility to oversee the Financial Audit for the City and Redevelopment Agency, and the Single Audit in accordance with A-133. The City of Yorba Linda receives the GFOA Award for Excellence in Financial Reporting each year. City of Monrovia Ms. Harper has served as the Audit Manager for the City of Monrovia for fiscal year 2004-2005 through present. The City of Monrovia's population is approximately 37,000, with neighboring cities of Arcadia and Duarte. As the Audit Manager, it has been her responsibility to oversee all areas of the 15 Appendix B Deborah A. Harper, CPA, Audit Manager (Continued) Financial Audit for the City and Redevelopment Agency, and the Single Audit in accordance with A-133. The City of Monrovia receives the GFOA Award for Excellence in Financial Reporting each year. Ms. Harper has also been involved in the following engagements: City of Claremont City of Emeryville City of La Mirada City of Yorba Linda Foothill Transit San Diego County Water Authority City of EI Monte City of Glendora City of Monrovia City of Simi Valley City of Temecula Achievements: Ms. Harper has developed and conducts various Lance, Soll & Lunghard, LLP municipal training courses for new associates and members of the firm. 16 Appendix B t TROY O. GRUNKLEE t AUDIT SENIOR t t Education: Bachelor of Arts Degree in Business Administration with an emphasis in Accounting — California State University, Fullerton 2005 t License: Certified Public Accountant — In Process t Continuing Total hours were 128 in last three years of which 64 were in governmental t Education: accounting and auditing subjects. Mr. Grunklee has met the Governmental Auditing Standards requirement for governmental CPE. t Experience: Four years experience in governmental audits. Mr. Grunklee has progressed in an outstanding manner. During his time with the firm, Mr. Grunklee has performed all phases of our municipal audits, including CAFR audits, redevelopment agency audits and Single Audits. He has been involved in the following municipal engagements: City of Bip Bear Lake Mr. Grunklee served as the Audit Senior for the City of Big Bear Lake for fiscal year 2007-2008 through 2008-2009. The City of Big Bear is a complex city with various component units including the Improvement Agency of the City of Big Bear Lake, the Big Bear Lake Fire Protection District and the Big Bear Lake Performing Arts Center Foundation. As the Audit Senior, it has been Mr. Grunklee's responsibility to oversee the fieldwork for all areas of the financial audit, including preparation of the Comprehensive Annual Financial Report. 2 City of Monrovia Mr. Grunklee served as the Audit Senior for the City of Monrovia for fiscal year 2008-2009. As the Audit Senior it has been Mr. Grunklee's responsibility to oversee the fieldwork for all areas of the financial audit, as well as preparation of the Comprehensive Annual Financial Report. The City of Monrovia receives the GFOA Award for Excellence in Financial Reporting each year. Mr. Grunklee has also been involved in the following engagements: City of Emeryville City of La Quinta City of Malibu City of Menifee City of California City City of Wildomar City of Walnut 17 City of La Mirada City of Fontana City of Murrieta City of Imperial Beach City of Simi Valley City of Clearlake Foothill Transit Authority Appendix C R.H. JOHNSTON ACCOUNTANCY INC. A Professional Corporation 21031 Ventura Boulevard, Suite 210 Woodland Hills, California 91364 (818)346-9800 Fax(818)346-0609 October 29, 2007 To the Partners, Lance SolI & Lunghard LLP We have reviewed the system of quality control for the accounting and auditing practice of Lance Soll & Lunghard LLP (the firm) in effect for the year ended May 31, 2007. A system of quality control encompasses the firm's organizational structure and the policies adopted and procedures established to provide it with reasonable assurance of conforming with professional standards. The elements of quality control are described in the Statements on Quality Control Standards issued by the American Institute of CPAs (AICPA). The firm is responsible for designing a system of quality control and complying with it to provide the firm reasonable assurance of conforming with professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance with its system of quality control based on our review. Our review was conducted in accordance with standards established by the Peer Review Board of the AICPA. During our review, we read required representations from the firm, interviewed firm personnel and obtained an understanding of the nature of the firm's accounting and auditing practice, and the design of the firm's system of quality control sufficient to assess the risks implicit in its practice. Based on our assessments, we selected engagements and administrative files to test for conformity with professional standards and compliance with the firm's system of quality control. The engagements selected represented a reasonable cross-section of the firm's accounting and auditing practice with emphasis on higher -risk engagements. The engagements selected included among others, an audit of Employee Benefit Plan and engagements performed under Government Auditing r� Standards. Prior to concluding the review, we reassessed the adequacy of the scope of the peer review procedures and met with firm management to discuss the results of our review. We believe �- that the procedures we performed provide a reasonable basis for our opinion. In performing our review, we obtained an understanding of the system of quality control for the firm's accounting and auditing practice. In addition, we tested compliance with the firm's quality control policies and procedures to the extent we considered appropriate. These tests covered the application of the firm's policies and procedures on selected engagements. Our review was based on selected tests therefore it would not necessarily detect all weaknesses in the system of quality control or all instances of noncompliance with it. There are inherent limitations in the effectiveness of any system of quality control and therefore noncompliance with the system of quality control may occur and not be detected. Projections of any evaluation of a system of quality control to future periods is subject to the risk that the system of quality control may become inadequate because of changes in conditions, or because the degree of compliance with the policies or procedures may deteriorate. 18 Appendix C In our opinion, the system of quality control for the accounting and auditing practice of Lance Soli & Lunghard LLP in effect for the year ended May 31, 2007, has been designed to meet the requirements of the quality control standards for an accounting and auditing practice established by the AICPA and was complied with during the year then ended to provide the firm with reasonable assurance of conforming with professional standards. As is customary in a system review, we have issued a letter under this date that sets forth comments that were not considered to be sufficient significance to affect the opinion expressed in this report. 19 CITY COUNCIL Agenda # 6.4 Meeting Date: April 20, 2010 AGENDA REPORT TO: Honorable Mayor and Members o the City Council VIA: James DeStefano, City Man g TITLE: A RESOLUTION VACATING N UNUSED PORTION OF AN EASEMENT FOR SLOPE PURPOSES (ALONG DERRINGER LANE IN THE COUNTRY ESTATES). RECOMMENDATION: Adopt. FINANCIAL IMPACT: There is no financial impact for the City. BACKGROUND/DISCUSSION: A request has been initiated by the applicant, Sumer Vardhan, to vacate a portion of the easement for slope purposes as well as a future street easement on Lot 56 of Tract Map No. 23483 (along Derringer Lane in the Country Estates). The slope easement and future street easement were dedicated to the City of Diamond Bar as successor to the County of Los Angeles on Tract Map No. 23483 in 1969 (Attached). However, the County rejected the future street easement dedication and only accepted the slope purposes easement. This easement for slope purposes was intended to accommodate the construction of the future street cul-de-sac as shown on the tract map. The roadway (Derringer Lane) was constructed as a "through" street negating the need for a cul-de- sac at this location. Additionally, all roadways within the Country Estates are private roadways and are not maintained by the City. In an effort to add additional buildable area within Lot 56, the applicant is requesting the vacation of the slope purposes easement. There is no present and prospective public use of this portion of the easement to be vacated and by vacating the City will be relieved from the responsibility of maintaining the easement. Additionally, all utility companies that may have any interest in the easement have issued notice that they do not object to the vacation of the slope easement. The vacation proceeding is undertaken in accordance with Division 9, Part 3 (Public Streets, Highways and Service Easements Vacation Law) Section 8333 of the Streets and Highways Code of the State of California. The Code prescribes the requirements for vacating easements. If the City Council finds that the easement for slope purposes, as described in the resolution, is unnecessary for the present or prospective public use, the City Council may adopt a resolution of vacation. CONCLUSION: Staff recommends the adoption of the Resolution to Vacate an Easement for Slope Purposes based on the presented facts that there is no present and prospective public use of the easement for slope or future street purposes. PREPARED BY: Kimberly Molina, Associate Engineer REVIEWED David G. Liu, Director o lic Works Attachments: DATE PREPARED: April 13, 2010 1) Tract Map No. 23483 2) Resolution No. 2010 -XX, with Exhibit A and B FA RESOLUTION NO. 2010 -XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, VACATING AN EASEMENT FOR SLOPE PURPOSES ON LOT 56 OF TRACT MAP NO. 23483 IN THE CITY OF DIAMOND BAR, CALIFORNIA A. RECITALS: (i) WHEREAS, an easement has been dedicated to the City of Diamond Bar, as successor to the County of Los Angeles, for slope purposes dedicated by statement on the face of Tract Map No. 23483, recorded in Book 790, Pages 5 through 19 inclusive, of maps in the Office of the County Recorder of the County of Los Angeles, State of California; and (ii) WHEREAS, it is appropriate to consider the vacation of the portion of the easement for slope purposes, the location and extent of which is shown on Exhibit A attached hereto, because the easement has not been used for slope purposes since the date it was dedicated and for a period of at least consecutive five years; and (iii) WHEREAS, it is appropriate to consider the vacation of the portion of the easement for slope purposes because the purpose for which it was granted was to accommodate the future street easement which was rejected by the County of Los Angeles on the face of Tract Map No. 23483. B. RESOLUTION: NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, DOES HEREBY RESOLVE: Section 1. That the proposed location, purpose and extent of the slope easement vacation is found to be in conformance with the General Plan of the City of Diamond Bar Land Use Element, Goal 1, Objective 1.5, Strategy 1.5.4(b) which states, "Existing residential lots that are burdened by non open space map restrictions shall be required to be subject to a process established by the City Council prior to removal of any such restrictions." Section 2. That all the facts set forth in Part A — Recitals of this resolution are true and correct. Section 3. That this vacation is made pursuant to Section 8333 of the California Streets & Highways Code. Section 3. That the portion of the easement for slope purposes, generally shown in Exhibit A and B attached hereto and made a part hereof, is unnecessary for present or prospective public use. Section 4. That no in-place utility facilities will be affected as a result of this vacation and public utility companies have been noticed and have no objection to the vacation. Section 5. That the portion of the easement for slope purposes herein above described is hereby ordered vacated, and; Section 6. That the City Clerk is directed to record a certified copy of this resolution of vacation in the Office of the County Recorder of the County of Los Angeles, State of California PASSED, APPROVED AND ADOPTED this day of Carol Herrera, Mayor ATTEST: 2010. I, TOMMYE A. CRIBBINS, City Clerk of the City of Diamond Bar, California do hereby certify that the foregoing Resolution Number 2010- was duly and regularly passed and adopted by the City Council of the City of Diamond Bar, California, at its regular meeting held on the day of , 2010, by the following vote to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: TOMMYE A. CRIBBINS, CITY CLERK CITY OF DIAMOND BAR, CALIFORNIA EXHIBIT "A": PAGE 1 LEGAL DESCRIPTION OF EASEMENT TO BE VACATED: PARCEL 1: 20' WIDE SLOPE EASEMENT THAT PORTION OF LOT 56 OF TRACT NO. 23483, IN THE CITY OF DIAMOND BAR, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 790, PAGES 5 THROUGH 19, INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEASTERLY CORNER OF SAID LOT 56 AND A POINT ON THE CENTERLINE OF DERRINGER LANE, A PRIVATE STREET, 64 FEET WIDE, AS SHOWN ON SAID MAP. SAID POINT ALSO BEING ON A CURVE, CONCAVE TO THE EAST AND HAVING A RADIUS OF 300.00 FEET, A RADIAL BEARING AT SAID POINT BEING NORTH 890 27'54" WEST. THENCE ALONG THE SOUTHERLY LINE OF SAID LOT WHICH IS ALSO RADIAL TO SAID CURVE, NORTH 89° 27' 54" WEST 32.00 FEET TO THE WESTERLY SIDELINE OF SAID DERRINGER LANE AND THE TRUE POINT OF BEGINNING. THENCE CONTINUING ALONG SAID SOUTHERLY LINE, NORTH 890 27' 54" WEST 20.00 FEET TO THE BEGINNING OF A NON -TANGENT CURVE, CONCAVE TO THE WEST AND HAVING A RADIUS OF 68.00 FEET. A RADIAL BEARING AT SAID POINT BEING SOUTH 890 2754" EAST. THENCE NORTH- WESTERLY ALONG SAID CURVE AN ARC DISTANCE OF 12.02 FEET AND THROUGH CENTRAL ANGLE OF 100 07' 26" TO A TANGENT LINE. THENCE ALONG SAID LINE, NORTH 090 35'20" WEST 30.00 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE TO THE EAST AND HAVING A RADIUS OF 64.00 FEET. THENCE NORTHERLY ALONG SAID CURVE AN ARC DISTANCE OF 85.76 FEET AND THROUGH CENTRAL ANGLE OF 760 46' 27" TO AN ANGLE POINT OF THAT EASEMENT TO THE COUNTY OF LOS ANGELES FOR SLOPE PURPOSES AS SHOWN ON THE MAP OF SAID TRACT; THENCE CONTINUING ALONG SAID CURVE AN ARC DISTANCE OF 9.65 FEET AND THROUGH CENTRAL ANGLE OF 080 38' 23" TO THE WESTERLY SIDELINE OF SAID DERRINGER LANE. SAID POINT BEING ON A NON -TANGENT CURVE, CONCAVE TO THE EAST AND HAVING A RADIUS OF 332.00 FEET. A RADIAL BEARING AT SAID POINT BEING NORTH 690 15' 54" WEST. THENCE SOUTH- ERLY ALONG SAID CURVE AN ARC DISTANCE OF 26.60 FEET AND THROUGH CENTRAL ANGLE OF 040 35'26" TO THE BEGINNING OF A NON -TANGENT EXHIBIT "A": (CONTD) PAGE 2 CURVE, CONCAVE TO THE EAST AND HAVING A RADIUS OF 44.00 FEET. SAID CURVE BEING CONCENTRIC WITH AND DISTANT 20.00 FEET FROM THE PREVIOUS CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 64.00 FEET; A RADIAL BEARING AT SAID POINT BEING NORTH 33° 11' 12" WEST. THENCE SOUTHWESTERLY ALONG SAID CURVE AN ARC DISTANCE OF 50.99 FEET AND THROUGH CENTRAL ANGLE OF 660 24' 08" TO A TANGENT LINE. THENCE ALONG SAID LINE SOUTH 090 35' 20" EAST 30.00 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE TO THE WEST AND HAVING A RADIUS OF 88.00 FEET. SAID CURVE BEING CONCENTRIC WITH AND DISTANT 20.00 FEET FROM THE PREVIOUS CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 68.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE AN ARC DISTANCE OF 15.55 FEET AND THROUGH CENTRAL ANGLE OF 100 07'26" TO THE TRUE POINT OF BEGINNING. HAVING AN APPROXIMATE AREA OF 2,343 SQUARE FEET. PREPARE - H NG C40, L.S. 6924 LIC. EXP: 9/30/11 p1G Cq0 No. 6924 P(p Obl!1 EXHIBIT B: PLAT 56 U p 2slega e X8°36, \ CR y 0.) N65°O 6' WIDE EASEMENT OF THE \ COUNTY OF L05 ANGELES PER DEDICATION ON TRACT NO. 23483, M.B. 790-5-19. EASEMENT TO THE COUNTY OF LOS ANGELES FOR SLOPE PURPOSES ABANDONED BY DOC. REC. 8-13-1980 AS INST. NO. 80-777705, O.R. 2`°q8 53 � -- C A/6.9- iRq p w I O o O C4cl X1\0 ................... 32 R=300' 07 ..:.:......."...:.:.. .I'--32' -- ---32 N 89°27'54" W (RAD.) —� C2' P.O.C. LEGEND: SW 20.9Q' 32.00' N 89°27'54" W N 89°27'54" W 52.00'--4'(RAD.) — T.P.O.B. INDICATES 20' WIDE SLOPE EASEMENT GRANTED BY 10 LAND S\ MAP OF TRACT NO. 23483, M.B. 790-5-19, BEING VACATED BY THIS DOCUMENT. CV CSL INDICATES FUTURE STREET EASEMENT RESECTED BY 7O COUNTY OF LOS ANGELES ON MAP OF TRACT NO. 23483, M.B. 790-5-19. INDICATES 6' WIDE SEWER EASEMENT TO BE �� No 9� 024 -41 DOCUMENT TO BE RECORDED. DEDICATEE) TO CITY OF OND BAR PER SEPARATE qjF OF C p1.S�0� T.P.O.B. = TRUE POINT OF BEGINNING P.O.0 = POINT OF COMMENCEMENT • • INDICATES PROPERTY LINE Date: 4-6-10 DELTA ANGLE PREPARED BY: Scale: 1" = 20' Cl TRITECH ASSOCIATES, INC., Designed: - 85.76' 135 N SAN GABRIEL BL., Drawn: C.M. 68.00' SAN GABRIEL, CA 91775 Checked:- 15036'34" (TEL)626-570-1918 Dwg Name: 091116VC C4 (FAX) 626-570-1212 CURVE DATA TABLE NO. DELTA ANGLE RADIUS ARC L Cl 76'46'27" 64.00' 85.76' C2 10°07'26" 68.00' 12.02' C3 15036'34" 332,00' 90.45' C4 04°35' 26" 332.00' 26.60' C5 66°24'08" 44.00' 50.99' C6 10°07'26" 88.00' 15.55' C7 08°38'23" 64.00' 9.65' PLAT TO ACCOMPANY A LEGAL DESCRIPTION: EASEMENT VACATE: 2127 DERRINGER LANE, DIAMOND BAR, CA 91765 APN 8713-034-030 SCALE11"=60' TRACT No. 23483 IN UNINCORPORATED TERRITORY OF THE COUNTY OF LOS ANGELES BfiNC A JUAAF!/FS/ON OF AO?T/ONf OF SFCT/ONS 21 ANO PJ, TOwNSHlP S S uT/Y� FANIih 9 WEST S..B. 6. jrM. ANO SRANTNO AP1t441P ANv rU7UR6 S7DRM WAIN S'A,4.EMEWTS 7D 7W CO!/N7Y 0f W ANGELPS OYER GW.071DN9 OP IAT /79, TRACT M0. SLn9f, RECORIIED IN 900X7" , PA68S 51 M 75 CF AMPS, ROCOAOS OP SWtl OWVrV.. SHEET I OF 15 SHEETS E.L.PEARSON AND ASSOCIATES dAsls ��' BEAa Nis 7Y tb1: iiy MRYu' G r..- t1e awNe o. +ISro{;�,; Y2 5., R%W s.a.t4 <�.r�. ,v soapy rya �. �/7s uw rte„ .,, t� e,.,e ov srs-;.,flf•=f , r„oa. 31"1"1119 P1% f1L3. x r'F;� paver 94c pr „- ,r .-.<r . rer,hkroe✓wiFGrn lheLwands>sv�wlve.,a �,H >rmFnny//.fo.� has/.�sprssarymds 771e D01,141 N%2 BXe OEYE4OPiM6NT C17,PPORAlYS7N :'OM-N£.VTAL / ,er�PA RUXILIARYd.:. Ca>..hana, OMNYsn>Jac !'al <gei ' !hi<- {afi.+m s*feis Klbra ri va et, el, 3'z.3n, l; d5, de, [sad '%6 +o fa)mrtwrvc s� su0,k<f (, !� Ny.J , pemq wrtNt' we � nm aambM Mb nep Mrt R ambnep Ie the rmita,we mep pM ➢ e�neW rXeNbn, b bnab rtupwe u.i ,�:!re+r c� Aay45fe7,7,; A M8 eve m..-.ya^c9sA<.gras 6=d Cllf{E KF/a��fi 7QAN54MEE'/C1 Lvev. Yh�oYyUxcvNd T� µvYAi+: ca<j,�zfiA�i 1`r�xsanc , . ,PpBFQT _sTONFAHOAS50C/AYES unrucwn, Mrrxrn ox r° 2 6 BOOK120AGE SCALE V'=6d SHEET15 OF 15 SHEETS TRACT No. 23483 FILE) WITH LOS ANGELES IN UNINCORPORATED TERRITORY RECORDER, RAY E. LEE TORY OF THE . AUG 27 aM COUNTY OF LOS ANGELES E -L. PEARSON AND ASSOCIATES �114 6iVi er L4)'• p<� air f ; : '�c•asn ' 5 ¢ wll n �, .• )'- V Fl/.TUR" ----------- Q 1.17 .4- 'K k 1, A ? V I --- -- , -, ? pe 5,51, Agenda # 6 .5 Meeting Date: April 20, 2010 CITY COUNCIL AGENDA REPORT X98 TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Man#� TITLE: A RESOLUTION APPROVI G PROGRAM SUPPLEMENT AGREEMENT NO. 010-N TO ADMINISTER THE AGENCY -STATE AGREEMENT NO. 07-5455R FOR UTILIZATION OF FEDERAL FUNDS IN THE AMOUNT OF $125,000 FOR THE PATHFINDER MEDIAN PROJECT BETWEEN THE NORTHBOUND STATE ROUTE 57 ON/OFF RAMPS AND FERN HOLLOW DRIVE. RECOMMENDATION: Adopt Resolution No. 2010 -XX approving Program Supplement Agreement No. 010-N authorizing the City Manager to execute contracts and related documents necessary for the completion of the subject project. FINANCIAL IMPACT: The adoption of the Resolution and the execution of the Program Supplement Agreement will allow the City to be reimbursed $125,000.00 in total for the design and construction of the proposed project. The reimbursable federal funds are being provided by Highway Safety Improvement Program (HSIP) funds. The FY 2009-2010 budget for this project currently includes $125,000 from Proposition C funds and $125,000 from HSIP funds. DISCUSSION: The proposed center median project will consist of removing the existing pavement markers and asphalt concrete pavement, and replacing it with a raised landscaped median island. The median has been proposed to provide enhanced channelization and to deter motorists from making illegal left turns from driveways located on the south side of Pathfinder Road. Before federal funds can be made available for a programmed project, the City is required to enter into a supplemental agreement with the California Department of Transportation (Caltrans) and provide a resolution which authorizes a designated official of the City to execute the supplemental agreement. The existing agreement, commonly referred to as Administering Agency -State Agreement No. 07-5455, allows the City to administer Federally Funded Projects, whereas the supplemental agreement establishes conditions specific to an individual project. The project is currently being advertised for bids with an anticipated bid opening on April 29, 2010 and a construction start date in the beginning of July 2010. PREPARED BY: DATE PREPARED: Erwin Ching, Assistant Engineer April 14, 2010 REVIEWED BY: _2 /" � Z"�� David G. LiLf,Director of Public Works Attachment: Resolution No. 2010 -XX Program Supplement Agreement No. 010-N N RESOLUTION NO. 2010 -XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR APPROVING PROGRAM SUPPLEMENT NO. 010-N TO ADMINISTERING AGENCY -STATE AGREEMENT NO. 07-5455R FOR UTILIZATION OF FEDERAL FUNDS ON THE PATHFINDER MEDIAN PROJECT LOCATED BETWEEN THE 57 FWY ON/OFF RAMP AND FERN HOLLOW DRIVE RECITALS (i) The United States Congress enacted the Transportation Equity Act for the 21St Century (TEA -21) and 2005 Appropriation Program Funds for program funding; (ii) The City of Diamond Bar (City) annually receives Surface Transportation Program — Local Funds through Metropolitan Transportation Authority; (iii) The City has applied for the 2005 Federal Appropriation Funds from the United States Congress and the funds have been awarded to the City; (iv) The Program Supplement Agreement No. 010-N to Administering Agency - State Agreement No. 07-5455R shall be fully executed by the City and State of California Department of Transportation (Caltrans) prior to processing of the City's requests for reimbursement of the Pathfinder Median Project. RESOLUTION NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: 1. Approve the Program Supplement No. 010-N to Administering Agency - State Agreement No. 07-5455R for Federal Funds to be utilized for the construction of the Pathfinder Median Project. 2. Certifies that said Project will be constructed in accordance with the Program Supplement No. 010-N and federal procedures outlined in the Local Assistance Program Manual and Guidelines. 3. Appoints James DeStefano as agent of the City of Diamond Bar 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 aforementioned project. PASSED, APPROVED AND ADOPTED this 20th day of April, 2010_ Carol Herrera, 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 20th day of April, 2010 by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ATEST: CITY CLERK OF THE CITY OF DIAMOND BAR PROGRAM SUPPLEMENT NO. N010 to ADMINISTERING AGENCY -STATE AGREEMENT FOR FEDERAL -AID PROJECTS NO. 07-5455R Date : March 08, 2010 Location: 07-LA-0-DMBR Project Number: HSIPL-5455(012) E.A. Number: 07-933215 This Program Supplement hereby incorporates the Administering Agency -State Agreement for Federal Aid which was entered into between the Administering Agency and the State on 06/05/08 and is subject to all the terms and conditions thereof. This Program Supplement is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. , approved by the Administering Agency on (See copy attached). The Administering Agency further stipulates that as a condition to the payment by State of any funds derived from sources noted oelow obligated to this project, the Administering Agency accepts and will comply with the Special covenants or Remarks setforth :)n the following pages. PROJECT LOCATION: Pathfinder Rd bet the intersection of South Brea Canyon Road and Fern Hollow Dr TYPE OF WORK: Safety Enchancement LENGTH: 0 (MILES) Estimated Cost Federal Funds Matching Funds $147,840.00 LS30 $104,187.00 LOCAL $43,653.00 $0.00 OTHER $0.00 CITY OF DIAMOND BAR By Date Attest Title STATE OF CALIFORNIA Department of Transportation By Chief, Office of Project Implementation Division of Local Assistance Date I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance: Accounting Officer Date C) S104,187.00 Chapter Statutes Item Year Program BC Category Fund Source AMOUNT 1 2009 2660-102-890 2009-2010 20.30.010.550 C 262042 892-F 104,187.00 Program Supplement 07 -5455R -N010- ISTEA Page 1 of 4 )7-LA-0-DMBR 3SIPL-5455(012) SPECIAL COVENANTS OR REMARKS U.51U 2S! 1 U 1 U 1. The ADMINISTERING AGENCY will advertise, award and administer this project in accordance with the current published Local Assistance Procedures Manual. 2. ADMINISTERING AGENCY agrees that it will only proceed with work authorized for specific phase(s) with an "Authorization to Proceed" and will not proceed with future phase(s) of this project prior to receiving an "Authorization to Proceed" from the STATE for that phase(s) unless no further State or Federal funds are needed for those future phase(s). 3. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six months commencing after the funds are encumbered for each phase by the execution of this Project Program Supplement Agreement, or by STATE's approval of an applicable Finance Letter. STATE reserves the right to suspend future authorizations/obligations, and invoice payments for any on-going or future federal -aid project by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period. If no costs have been invoiced for a six-month period, ADMINISTERING AGENCY agrees to submit for each phase a written explanation of the absence of PROJECT activity along with target billing date and target billing amount. ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current Local Assistance Procedures Manual. 4. The Administering Agency shall not discriminate on the basis of race, religion, age, disability, color, national origin, or sex in the award and performance of any Federal -assisted contract or in the administration of its DBE Program Implementation Agreement. The Administering Agency shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of Federal -assisted contracts. The Administering Agency's DBE Implementation Agreement is Program Supplement 07 -5455R -N010- ISTEA Page 2 of 4 )7-LA-0-DMBR ISIPL-5455(012) SPECIAL COVENANTS OR REMARKS U.)/UWZUI V incorporated by reference in this Agreement. Implementation of the DBE Implementation Agreement, including but not limited to timely reporting of DBE commitments and utilization, is a legal obligation and failure to carry out its terms shall be treated as a violation of this Agreement. Upon notification to the Administering Agency of its failure to carry out its DBE Implementation Agreement, the State may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.). 5. As a condition for receiving federal -aid highway funds for the PROJECT, the Administering Agency certifies that NO members of the elected board, council, or other key decision makers are on the Federal Government Excluded Parties List System (EPLS). 6. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer within 60 days of project contract award or with submittal of the ADMINISTERING AGENCY's first invoice for the construction contract, whichever is earlier. Failure to do so will cause a delay in the State processing invoices for the construction phase. Please refer to Section 15.7 "Award Package" of the Local Assistance Procedures Manual. 7. Any State and Federal funds that may have been encumbered for this project are available for disbursement for limited periods of time. For each fund encumbrance the limited period is from the start of the fiscal year that the specific fund was appropriated within the State Budget Act to the applicable fund Reversion Date shown on the State approved project finance letter. Per Government Code Section 16304, all project funds not liquidated within these periods will revert unless an executed Cooperative Work Agreement extending these dates is requested by the ADMINISTERING AGENCY and approved by the California Department of Finance. ADMINISTERING AGENCY should ensure that invoices are submitted to the District Local Assistance Engineer at least 75 days prior to Program Supplement 07-5455R-NO10- ISTEA Page 3 of 4 )7-LA-0-DMBIk` 4STPL-5455(012) SPECIAL COVENANTS OR REMARKS U3/UW/-V 1 U the applicable fund Reversion Date to avoid the lapse of applicable funds. Pursuant to a directive from the State Controller's Office and the Department of Finance; in order for payment to be made, the last date the DistrictLocal Engineer can forward an invoice for payment to the Department's Local Programs Accounting Office for reimbursable work for funds that are going to revert at the end of a particular fiscal year is May 15th of the particular fiscal year. Notwithstanding the unliquidated sums of project specific State and Federal funding remaining and available to fund project work, any invoice for reimbursement involving applicable funds that is not received by the Department's Local Programs Accounting Office at least 45 days prior to the applicable fixed fund Reversion Date will not be paid. These unexpended funds will be irrevocably reverted by the Department's Division of Accounting on the applicable fund Reversion Date. Program Supplement 07-5455R-NO10- ISTEA Page 4 of 4 Agenda # 8 , 1 Meeting Date: April 20, 2010 CITY COUNCIL AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Mana e 0�1() TITLE: Consideration of financing options for the acquisition of 21810 Copley Drive and adoption of resolution No 2010 -XX authorizing the sale of municipal bonds for the reimbursement of the property acquisition. RECOMMENDATION: Accept presentation; provide direction to staff regarding financing options; and adopt Resolution No. 2010 -XX BACKGROUND: The City currently leases office space in the AQMD Government Center. The City has leased office space for use as a City Hall since incorporation in 1989. The existing lease with the AQMD will expire in February 2011. Staff has been in discussions with AQMD executive management about acquiring additional office space and extending the current lease for another 10 years. At the time of lease negotiations, the City became aware of the availability of the building located at 21810 Copley Drive and began to investigate its possible acquisition. As part of the due diligence process to consider the acquisition of the property, the City engaged the services of Fieldman Roiapp and Associates (F&R) to review the City's finances, perform a cost benefit analysis on the possible purchase of a City Hall facility, and provide financing options if the City Council authorized the purchase. At its last meeting the City Council authorized the purchase of the building located to be used as Diamond Bar City Hall and possibly a new County library. The purchase price for the property is $9,917,100. In addition to the purchase price, additional costs such as improvements to the building, relocations costs, infrastructure relocation and the purchase of furniture, fixtures and equipment (FF&E) is estimated to be an additional $2 million. The total project cost (acquisition, construction, relocation, and FF&E) is estimated at $11.9 million. At the time the analysis was done by the City's financial advisors, the project cost was estimated at $12.2 million. DISCUSSION: As stated above, the City's financial consultant, Fieldman Rolapp & Associates (F&R), conducted a detailed analysis of the City's fiscal standing to determine the overall ability to purchase the building, the maximum borrowing capacity, and recommended financing options. After a thorough review of the City's expected revenue streams (excluding NFL Stadium settlement revenues in an effort to remain as conservative in our estimates as possible), expenditures, DBC bond payments, fund balances, and other ongoing costs, F&R determined the City has sufficient revenues to finance the project. However, it is recommended that the City finance no more than $8.8 million of the total project costs to maintain a lower annual debt service payment. The following financing considerations were examined. 1. 100% Cash Purchase There are sufficient funds available in the City's General Fund reserves to fund the entire project costs ($11.9M). This option eliminates the need for annual payments plus the costs of issuance and interest that are required by financing mechanisms. However, an all-cash purchase results in greater foregone investment earnings and opportunity cost in that the funds expended on the building could not be used to fund other public projects or economic development opportunities. The state's unstable fiscal condition and the ongoing threat of raids on local funding sources also makes the availability of cash reserves more desirable. 2. Tax -Exempt Municipal Bonds Through the City's Financing Authority, the building purchase could be funded with a traditional bond issue with a maturity horizon of up to thirty years. This option provides a longer amortization period (up to 30 years), establishes a City credit profile, takes advantage of the yield curve (lower up -front interest rates, increasing in later years), and the opportunity to include an optional call provision that allows the City to essentially pay off the bonds after 10 years without penalty. Bond financing does require the City to secure a credit rating and incur significant issuance costs and disclosure requirements, while taking longer to implement. Despite the City's success thus far with a variable rate bond issuance for the Diamond Bar Center, F&R recommends any building -related bonds be issued at fixed rates to limit ongoing rate exposure. 3. Private Placement The Council may also consider a private placement financing mechanism, which is similar to a traditional fixed-rate real estate loan or mortgage. Private placements usually have shorter terms that generally do not exceed a 20 year horizon, with most institutions limiting terms to no more than 10-15 years. However, despite the difficult economic conditions, the City's outstanding fiscal health provides leverage that may make a 20 year private placement a legitimate option. Private placements can be in place rapidly and limit the issuance costs and disclosure requirements of municipal DOCS00 1400697v 1/024168-0002 bond financing. This option provides for lower annual payments but with higher interest costs and limited ability to pre -pay the balance without penalty. FINANCING COMPARISIONS For purposes of comparison, the following public sale and private placement examples assume the City is contributing $5 million and financing $7.2 million towards the purchase. Staffs review of the F&R analysis leads us to believe a 20 year financing period is the most appropriate and cost-effective choice, which is shown below. Contributing more or less in cash reserves up front will impact the overall costs of each financing option. Factors 100% Cash Purchase Public Sale Private Placement Estimated Acquisition Cost $12,200,000 $12,200,000 $12,200,000 General Fund Contribution $12,200,000 $5,000,000 $5,000,000 Term N/A 20 20 Net Proceeds/Financed Amount N/A $7,200,000 $7,200,000 Par Amount N/A $8,215,000 $7,300,000 Avg. Annual Debt Service N/A $634,460 $598,251 Max. Annual Debt Service N/A $806,821 $599,075 Total Net Debt Service N/A $12,001,867 $12,064,725 True Interest Cost N/A 4.76% 5.25% PV of Foregone Investments $5,832,855 $2,390,514 $2,390,514 Total Cost $18,032,855 $19,392,381 $19,455,239 (General Fund Contribution plus Total Net Debt Service plus PV of Foregone Investments) It should be noted that while it appears that a cash purchase carries the lowest cost, the table above does not include investment or interest revenue on the $7,200,000 in retained reserves under a financing mechanism. Spread over the 20 year period, the difference in cost between a cash -funded or financed purchase is approximately $70,000 per year, which will almost undoubtedly be made up for in investment revenue. REIMBURSEMENT RESOLUTION The timing of the purchase and the desire of the building's current owners to close escrow quickly allowed the City to realize an exceptional purchase price, below the appraised value of the property. This relatively short escrow period will, however, require the initial purchase of the building to be completed utilizing cash reserves. The City does have the ability to reimburse itself all or a portion of the purchase of the building utilizing a financing mechanism (F&R recommends financing no more than $8.2 million). However, in order to finance any portion of the acquisition either now or any time in the future, the City Council must pass the attached reimbursement resolution DOCS001400697v 1/024168-0002 within 60 days from purchasing the building (close of escrow). The adoption of the resolution does not require the City to finance the purchase, it does not result in any costs to the City, it merely allows the City to keep the option of financing the building either now or at any time in the future as a viable option. The attached resolution was prepared by the City's Bond Counsel who will be present at the meeting to answer any questions. SUMMARY The City Council will receive a presentation from staff and Fieldman Rolapp and Associates regarding the financing options for the property. There is no urgency to decide to cash fund or finance the building as the initial acquisition will be cash funded. If,however, the City desires to finance the project now or any time in the future, the City Council must pass the reimbursement resolution within 60 days of the close of escrow. So again, there is no urgency to pass the resolution if the Council has questions or concerns. Conversely, adopting the resolution doesn't commit the City to any specific path; it merely keeps all of the options available. Prepared by T)�4� Dave oy e, ssis t City Manager DOCSOC/ 1400697v 1/024168-0002 RESOLUTION NO. 2010 -XX REIMBURSEMENT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR REGARDING ITS INTENTION TO ISSUE TAX EXEMPT OBLIGATIONS WHEREAS, the City Council of the City of Diamond Bar (the "Issuer") desires to finance the costs of acquiring certain public facilities and improvements, as provided in Exhibit A attached hereto and incorporated herein (the "Project"); WHEREAS, the Issuer intends to finance the acquisition of the Project or portions of the Project with the proceeds of the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"); and WHEREAS, prior to the issuance of the Obligations the Issuer desires to incur certain expenditures with respect to the Project from available monies of the Issuer which expenditures are desired to be reimbursed by the Issuer from a portion of the proceeds of the sale of the Obligations; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: SECTION 1. The above recitals are all true and correct. SECTION 2. The Issuer hereby states' its intention and reasonably expects to reimburse Project costs incurred prior to the issuance of the Obligations with proceeds of the Obligations. Exhibit A describes either the general character, type, purpose, and function of the Project, or the fund or account from which Project costs are to be paid and the general functional purpose of the fund or account. SECTION 3. The reasonably expected maximum principal amount of the Obligations is [$11,000,000]. SECTION 4. This resolution is being adopted on or prior to the date (the "Expenditures Date or Dates") that the Issuer will expend monies for the portion of the Project costs to be reimbursed from proceeds of the Obligations. SECTION 5. Except as described below, the expected date of issue of the Obligations will be within eighteen months of the later of the Expenditure Date or Dates and the date the Project is placed in service; provided, the reimbursement may not be made more than three years after the original expenditure is paid. For Obligations subject to the small issuer exception of Section 148(f)(4)(D) of the Internal Revenue Code, the "eighteen -month limit" of the previous sentence is changed to "three years" and the limitation of the previous sentence beginning with "; provided, ...." is not applicable. DOCSOC/1400697v 1/024168-0002 SECTION 6. Proceeds of the Obligations to be used to reimburse for Project costs are not expected to be used, within one year of reimbursement, directly or indirectly to pay debt service with respect to any obligation (other than to pay current debt service coming due within the next succeeding one year period on any tax exempt obligation of the Issuer (other than the Obligations)) or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the Issuer or any entity related in any manner to the Issuer, or to reimburse any expenditure that was originally paid with the proceeds of any obligation, or to replace funds that are or will be used in such manner. SECTION 7. This resolution is consistent with the budgetary and financial circumstances of the Issuer, as of the date hereof. No monies from sources other than the Obligation issue are, or are reasonably expected to be reserved, allocated on a long term basis, or otherwise set aside by the Issuer (or any related party) pursuant to their budget or financial policies with respect to the Project costs. To the best of our knowledge, this City Council is not aware of the previous adoption of official intents by the Issuer that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax exempt obligations have not been issued. SECTION 8. The limitations described in Section 3 and Section 4 do not apply to (a) costs of issuance of the Obligations, (b) an amount not in excess of the lesser of $100,000 or five percent (5%) of the proceeds of the Obligations, or (c) any preliminary expenditures, such as architectural, engineering, surveying, soil testing, and similar costs other than land acquisition, site preparation, and similar costs incident to commencement of construction, not in excess of twenty percent (20%) of the aggregate issue price of the Obligations that finances the Project for which the preliminary expenditures were incurred. SECTION 9. This resolution is adopted as official action of the Issuer in order to comply with Treasury Regulation § 1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Issuer expenditures incurred prior to the date of issue of the Obligations, is part of the Issuer's official proceedings, and will be available for inspection by the general public at the main administrative office of the Issuer. SECTION 10. All the recitals in this Resolution are true and correct and this City Council so finds, determines and represents. APPROVED and ADOPTED this 20th day of April, 2010. CAROL HERRERA, MAYOR DOCSOC/1400697Y 1/024168-0002 I, TOMMYE CRIBBINS, City Clerk of the City of Diamond Bar, California do hereby certify that the foregoing Resolution was Passed, Approved and Adopted by the Cit Council of the City of Diamond Bar, California, at its regular meeting held on the 20t day of April, 2010 by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: Tommye Cribbins, City Clerk City of Diamond Bar DOCSOC/ 1400697v U024168-0002 EXHIBIT A DESCRIPTION OF PROJECT Acquisition of approximately 6.47 acres of land and an approximately 55,095 -square foot two story office building located thereon located at 21810 E. Copley Drive, Diamond Bar, California. DOCSOC/ I 400697 1/024168-0002 - I W 0,11111111111mmaUl FIELDMAN i ROLAPP Sr ASSOCIMES bap 1-iint, p, • Analysis for Financing Op Building Acquisition Analysis • Performed Cost/Benefit Analysis of Renewing the City's existing Lease with AQMD or Purchasing the Building and relocating to 21S10 Copley Drive, accounting for: s City's current and projected future financial position Existing Debt, projected new General Fund revenues, unrestricted General Fund reserves City-Nvide revenue and expenditure projections Pf Expected Lease paynnents, O&M cost, other costs ® Utilized the most conservative revenue forecasts and concluded that City can afford the building acquisition • Seller has accepted City's offer to purchase the building for $9,917,100 by initially funding the purchase with General Fund reserves Paying cash up front does not limit City's ability to finance the buila-ig purchase at a later date and replenish its reserves if City adopts a Reimbursement Resolution FIELDMAN 1 ROLAPP 2 k,3SSU C IA1LS Adoption of Reimbursement Resolution • Adopting a Reimbursement Resolution: Provides flexibility for the City to reimburse itself with tax-exempt bond proceeds for prior capital expenditures per IRS guidelines Must be adopted within 60 days of expenditure (i.e. close o£ escrow on the building) <. City would have I8 months from the date of expenditure to issue tali -exempt bonds to reimburse itself for the costs of acquiring the building Cite is not required to issue Bonds if it adopts the Reimbursement Resolution W Decision on whether or not to issue Bonds could come at a later date If Reimbursement Resolution is not adopted timely, City will not be able to reimburse itself with tax- exempt bond proceeds 3 FIELDMAN ! ROLAPP �: A�St7Uhii�f, in Alternati -- Next Steps Flnancgves 0 Financing Options: 100% Cash Purchase Traditional tax-exempt municipal bond issue Tax-exempt Private placement (structured like a direct lease borrowing) Various combinations of cash -funding and tax-exempt financing Borrowing Capacity and Structuring Considerations m Fiscally conservative revenue projections (no NTL Stadium Settlement revenues) Opportunity cost of using reserves to snake an all-cash purchase ,.- Revenues and fund balance sufficient to support payment of debt service Optimal borrowing term and level of annual debt service and lowest overall borrowing cost FIELDMAN , ROLAPP 'e AIL a.:..�t �� cash p�.�ch-ase: d 10 , cash Purchase .:= C,ity� has 5,.�ffiGic tzt yesenTes cct esourCes: ase of ub�c consider sources d other p need to caxe�u�ly � fu�zdivg ht�ds towaY r of Stag, vet, tnstabiht5 to la,e some of these c uncertain city ; "IbilitY co11Onv "t of itnitIn, vitt/ Co' ent ent several rued revenues l-)ortu c develol�xn l�ro}ects / eco aot�i � tongs that sup�l nt em Foregone-�nvestalc _i. n11t11bubo11 _. f'~ � AN , I2,OLAP� 5 Financing Alternatives (Cont'd) • Traditional Tax-exempt Municipal Bond Issue (Public Sale): City could sell a traditional bond issue with a maturity of up to 30 years Explored many alternatives; ultimately limited the analysis to the scenarios with most fiscally conservative revenue forecasts (excluding the NFL Stadium Settlement revenues) • Public Sale Considerations: Public Sale will achieve the lowest borrowing rate Citywill establish a credit profile -4 Afore flexible legal and call provisions and financial covenants Higher issuance costs, including the need to fund a reserve fund Reserve fund used to pay the last year of debt service and provide annual investment earnings that are applied to reduce annual debt service 90 to 120 days to complete the financing ^: FIELDMAN : ROLAPP G &AS'.O ]A41_S Financing Alternatives (Cont'd) Traditional Tax-exempt Private Placement: Similar to a direct lease borrowing Shorter borrowing tern., maxunuin 20 years ® Private Placement Considerations: une frame — 45 to 60 days to complete the financing More streamlined, quicker t Lover issuance cost and potentially not having to fund a reserve fund Higher all -iii borrowing cost n . Potentially less flexibility in legal and call provisions and financial covenants No need for rating, offering statement or continuing disclosure i HELDMAN ROLAPP 7 Financing Alternatives Comparison : Comparison of Financing Alternatives FINANCING OF $6.9M OF PROJECT COSTS FINANCING OF $5.9M OF PROJECT COSTS Type of Sale Public Sale Private - Placement Public Sale Private Placement Public -Sale _ Term ("ears') i 5 15 20 20' 30 'Ge:rieral Fund : ontribWion 5,000 000 5.000.000 5.000.000 5,000,000 5.000.000 Net Proceeds 6,917.100 6.917,100 6,917.100 6,917.100 6.917,100 Par Arncunt 7,930.000 7.020.000 7.900,000 7.020.000 7.805.000 Net Average Annual Debt Servco" 693.140 666,147 590,793 574,261 517,682 'Io:al Net Debt Ser�.ce 9.719.620 10.103,231 11,152,009 11,580,938 14.948,751 True Interest Cost 4.31% 4.83% 4.76% 5.25% 5.56% - -, ,- .• .-:: _ TYPaaf;Sale:P.u61iuSale :�:��:=�=�P'`"---;Private;-�. Term (Years) 20 20" General Fund Contribution 6.000,000 6,000,000 Net Proceeds 5,917,100 5,917,100 Par Amount 6.785,000 6,020,000 Net Average Annual Debt ServcO `' 506,258 492,585 Total Net Debt Service 9,556,295 9,933,788 True Interest Cost 4.75% 5.25% (1)Assumes conservative earnings on the reserve fund of 2.5% on the PublicSale. Assumes no reserve fund required for the Private Placement. A 3% average rate of return over 15 or 20 years would result in the Public Sale option having lower annual debt service than the private sale. * In today's market, the ability to secure a private placement of this term is extremely difficult. • Under the public sale financing, the last year's debt service is paid out of the reserve fund * Staff comfortable with average annual debt service of up to $600K — 20 year term is optimal HELDMAN ; ROLAPP 8 4 a; ;•uciru F., Recommendation & Discussion Utilize accumulated unrestricted General Fund reserves to fund $5M or $6M of the building acquisition cost Finance $6.9M or 5.9M of the remaining building acquisition cost r: Pursue a 20 -year public sale borrowing Utilize ultra -conservative revenue constraints «' Allow for flexibility in structuring the financing to achieve optimal results — lowest possible borrowing cost and debt service payments *Additional Questions & Discussion FIELDMAN ROLAPP 9 .� hlF'•O�Iri U'S =- FIELDMAN I ROLAPP & ASSOCIATES MEMORANDUM To: James DeStefano, City Manager, City of Diamond Bar David Doyle, Assistant City Manager, City of Diamond Bar Linda Magnuson, Finance Director, City of Diamond Bar Ryan McLean, Assistant to the City Manager, City of Diamond Bar From: Jim Fabian, Principal Anna Ra&eva, Vice President Re: Building Acquisilion Project - Cost/Benefii analysis and Finarcing Cpiions Dote: February 18, 2010 You have asked us to perform an extensive analysis of the alternatives the City has regarding its intent to acquire the building located on 21810 E. Copley Drive for primary use as City Hall, as compared to the City's option of staying in the building it is currently leasing and renewing its lease next year. In performing this analysis, we have reviewed the existing fiscal condition of the City, accounting for its outstanding 2002 Series A variable rate lease revenue bonds and existing accumulated unrestricted General Fund reserves. In doing so, we have reviewed and discussed with staff the present and projected future financial position of the City and have analyzed the City's potential credit outlook, as well as its ability to finance its needs or pay for them from existing cash on hand. We have identified various alternatives, determined the feasibility of each alternative and performed cost/benefit analysis, taking into consideration the short- and long-term impact and additional costs, if any, associated with each option. The discussion that follows summarizes the assumptions utilized in the analysis as well as the potential alternatives available to the City, along with the estimated cost of each alternative, and outlines the advantages and disadvantages of each option. A detailed analysis is presented in the Appendix. ASSUMPTIONS Existing Building The City is currently leasing 12,117 square feet of building space at a monthly lease rate of $1.85 per square foot. These terms have been negotiated and will remain in place through February 28, 2011, when the existing lease expires. If the City decides to renew its lease, then the new lease terms will become effective on March 1, 2011 and will include a new monthly lease rate of $1.96 per square foot escalating annually by the Consumer Price Index (CPI). In addition, the City anticipates leasing greater square footage, or 15,678 square feet, and incurring one-time expansion/refurbishment costs of $350,000 in FY2011-2012. Further, beginning on March 1, 2011, the City will be required to pay a monthly fee of $500 for its use of FIELDMAN I ROLAPP & ASSOCIATES MEMORANDUM the auditorium, with that new fee escalating annually every March 1 by the CPI. In addition, the City is currently paying an annual storage fee of $20,000, which is also projected to increase by the CPI on March 1 of every year. For purposes of the analysis, after obtaining historical data for the CPI from the U.S. Department of Labor, Bureau of Labor Statistics, it was determined that over the past ten years, the CPI averaged 2.54%; over the past twenty years, it averaged 2.74%; and over the past thirty years, it averaged 3.57%. Thus, we have incorporated a conservative CPI estimate of 3.5% in our analysis. New Building The new building that the City is considering purchasing is a two-story, 55,095 square -foot building. The estimated cost of the building in its as -is -condition is $10.2 million. The City has estimated that, should it decide to purchase and move into the new building, it would incur one-time relocation costs of approximately $1 million and additional one-time tenant improvement/construction costs of approximately $1 million. The all -in annual operation and maintenance (O&M) costs of the new building are estimated at $450,000, effective March 1, 2011, and escalating annually by the CPI every July 1, beginning July 1, 2012. If the City decided to lease to another tenant a portion of the new building, an initial monthly lease rate of $1.90 per square foot is assumed, effective March 1, 2011 and escalating by the CPI on every March 1, beginning March 1, 2012. The monthly association dues for the new building are estimated at $1,784 and are assumed to escalate annually by the CPI beginning July 1, 2012. After discussions with staff, we have also assumed that even if the City decided to purchase the new building and relocate, it would still continue occupying the existing building it is leasing until the lease expires at the end of February, 2011. New Revenues It is anticipated that the City will be receiving revenue from several new sources, in addition to the already established revenue sources of the General Fund. These include revenues related to the NFL Stadium Settlement Agreement, as well as newly negotiated franchise and other fees. According to the NFL Stadium Settlement Agreement, the City will be entitled to a minimum of $700,000 of annual revenue to the City's Community Facility Fund, which will provide corresponding relief to the City's General Fund. This revenue source is estimated to begin August 1, 2014 and is based on a year defined as August 11t through July 31St. Thus, for purposes of the analysis, it is assumed that this revenue will be received by the City on August is, of each year, starting in 2014. We have reflected this new revenue stream in our detailed analysis of all projected revenue sources for the City. Although the Settlement Agreement provides for a potential increase in this revenue, we have decided to remain conservative and have assumed no future increase. Further, subsequent to the preliminary analysis and after discussions with staff, in order to be even more conservative we have excluded the NFL Stadium Settlement revenues altogether from the City's protected available revenues. In addition, the City recently negotiated new franchise and other fee agreements. Per those agreements, beginning August 1, 2010, the City will be adding new franchise fees, street FIELDMAN 11 ROLAPP & ASSOCIATES MEMORANDUM sweeping fees, and solid waste vehicle improvement/road maintenance fees as additional sources to its General Fund. Since the new fees become effective on August 1, 2010, the City will receive only 11 -months worth of them for FY2010-2011. The franchise fees are estimated to amount to $354,000 per year and, being based on the gross receipts of the waste companies, may increase in the future in the event that these companies raise their fees or add additional accounts. However, in order to be conservative, we have assumed that these fees do not increase and remain at $354,000 per year. The street sweeping fees and the solid waste vehicle improvement/road maintenance fees, on the other hand, amount to $85,000 and $115,000 per year, respectively, and are adjusted annually by the CPI. Investment Earnings on Accumulated Reserves For purposes of the analysis, we have assumed that the City could invest its accumulated reserves and earn: (i) 1.2% on those reserves for FY2010-2011 through FY2012-2013, (ii) 27o for FY2013-2014 and FY2014-2015, (iii) 2.57o for FY2015-2016 through FY2019-2.020, (iv) 3% for FY2020- 2021 through FY2024-2025, and (v) 3.5% for FY2025-2026 and thereafter. A summary of all assumptions is included in the Appendix. ALTERNATIVES Remain in Existing Building and Renew Lease One alternative available to the City is to remain in the building it is presently leasing and renew its lease next year. If the City pursued this option, it would incur annual costs in the form of lease expenses, auditorium expenses, and storage expenses, and one-time costs in FY2011- 2012 for expansion and refurbishment. A detailed pro -forma of the projected annual costs of the City related to this alternative is included in the Appendix. Based upon the analysis and the assumptions utilized in it, over the next twenty years, the City's annual costs will range between approximately $325,000 in FY2010-201 1 and approximately $729,000 in FY2029-2030, with a peak of annual costs in FY2011-2012 of approximately $746,000, reflecting the one-time expansion/refurbishment costs incurred that year. When evaluating this alternative, the City may want to consider some of the advantages and disadvantages of remaining in the existing building. Some of the advantages are: the fact that the City is only a lessee and hence pays an all -in cost in the form of a lease, without worrying abOUt the maintenance/renovation/remodeling/wear and tear of the building; the community already knows this location; the City will not have to incur any relocation costs, acquisition costs, and tenant improvement costs, and there will be no potential disruption in service. Some of the disadvantages associated with this option include the uncertainty with respect to future economic conditions, which could result in significantly higher lease payments than currently anticipated and could impose a financial strain on the City's General Fund. In addition, there is the uncertainty of the current owner's future plans with regard to the building and whether that owner may decide at some point to no longer renew the City's lease. At FIELDMAN ? ROLAPP .� 8: ASSOCIATES MEMORANDUM that time, the prevailing real estate market may be such that could result in significantly high lease payments, if the City decided to rent space in another building, or could require significant building acquisition costs, if the City decided to look for and purchase another building to which to relocate. Thus, in remaining in the existing building, the City needs to consider the opportunity cost associated with foregoing the attractive building purchase alternative it has. In addition, remaining in the existing building may result in the potential for additional future costs that the landlord could decide to pass on to the City. Furthermore, remaining in the existing building may limit the City's future ability to expand. Last, but not least, continuing to lease space in the current building could be perceived by the community as reflecting the need of establishing a focal point of civic pride in the form of a City Hall building that is owned by the City. Purchase New Building and Relocate The other alternative the City has is to purchase the building across the street, located on 21810 E. Copley Drive, and relocate there. With the current purchase price of the building in its as -is -condition estimated at $10.2 million and the City's relocation and tenant/improvement costs estimated at $1 million each, the total up -front cost associated with this option amounts to $12.2 million. The City could cover these costs from either accumulated unrestricted General Fund reserves, or could finance the costs through a public sale of lease revenue bonds secured by the General Fund or a private placement, or a combination of cash on hand and some form of borrowing. The amount of reserves that may have to be used will depend on several factors such as the intended use of the building, existing tax laws, and the City's present and projected future fiscal condition. Because of tax it will be difficult to finance the City's relocation expenses. Thus, at minimum, thc: :: T;: to pay $1 trillion frorn its accumulated unrestricted General Fund reserves it ; ,;;;: c; these expenses. Furthermore, depending on whether the City decides to use the entire new building for public use or leases a portion of the building to a private tenant, there might be additional tax implications, which may require a portion of the project, if financed, to be financed on a taxable basis. However, given the relative unattractiveness of current taxable interest rates, it might be beneficial for the City to fund that portion of the cost from existing reserves as well, as opposed to borrowing for it on the taxable market. Thus, assurning that at most 25% of the new building may be leased to a private tenant, the City may have to consider funding from reserves 25% of the remaining building acquisition cost and tenant improvements, or $2.8 million. Therefore, the City may have to pay from reserves a minimum of $1 million (8.2%) and a maximum of $3.8 million (31.1%) of the total upfront cost of $12.2 million_ However, this result changes when the City's borrowing capacity (which we discuss in more detail later in this report) is taken into account utilizing the most conservative projection for the City's current and anticipated future revenues (i.e., excluding the NFL Stadium Settlement revenues). Based on the very conservative revenue projections, the City needs to fund from reserves a bigger portion a minimum of approximately $3.4 million (28.2%) of the total upfront .:� FIELDMAN 1 ROLAPP .� & ASSOCIATES MEMORANDUM cost of $12.2 million. The remaining cost could be financed through either a traditional tax- exempt public offering or a private placement. In addition to the tax considerations we discussed earlier, the contemplated use of the new building impacts the annual costs of the City for owning and residing in that building. Under the 100% public use alternative, the City's annual costs over the first twenty years are estimated to range between approximately $350,000 and $876,000. These costs are lower if there is some private use of the building, since then the City will be receiving lease payments from the private tenant. For example, under the 25% private use and 75% public use scenario, the City's net annual costs over the next twenty years range between approximately $245,000 in FY2010-2011 and $292,000 in FY2029-2030. Alternatively, under the 10% private use and 90% public use scenario, the City's net annual costs range between $308,000 and $642,000. A detailed summary of the projected annual costs related to purchasing the new building and utilizing various combinations of public and private use of that building is presented in the Appendix. Some of the benefits associated with purchasing the building are: taking advantage of the favorable real estate market and the attractive purchase opportunity, ownership and community identification focal point, and available space for future expansion. Some of the disadvantages include the upfront cost associated with the acquisition of the building and the relocation and tenant improvement costs, additional O&M costs and association dues, as well as the foregone investment earnings on the reserves that will be used towards the upfront cost of the building and the potential additional debt service cost from financing the remaining portion of the acquisition. COST/BENEFIT ANALYSIS The graph on the following page summarizes the projected net annual costs for each alternative over the next twenty years, excluding the upfront cost of $12.2 million associated with acquiring the new building. As illustrated in the graph, except for FY2011-2012, the 100% public use and the 95% public use building purchase options result in higher nominal annual costs than the- Ioase alternative. However, the 90% public use and the 7517o public use building purchase scenarios have significantly lower nominal annual costs than the lease option, with the break-even case being the 941/1'0 public use scenario, under which the projected net n,orninal annual costs over the next twenty years, with the exception of FY2011-2012, correspond to the projected nominal annual costs under the lease alternative. In addition, the Appendix provides a detailed schedule of the difference in annual cost between the lease option and any of the various purchase options in both nominal dollars and present value terms. FIELDMAN i ROLAPP & ASSOCIATES MEMORANDUM $1,000,000 $900,000 - — - - $800,000 $700,000 ANNUALCOST $Goo,000 $500,000 $400,000 - -- - ---- - — — 1 � $300,000 .. ._._. ... .—... - --.. $200,000 .,�...,..,...,..,...,. - $100,000 --- --- �.- -- - ------ - - -------------- titi yti y3 ,tib ,y5 ye ,y'� ,y4. ,tio, .10 .tiS. ,y'Y 'L�' ,Lb ,tih tib A ,ti0 ,ya .50 ,ti0 ,ti0 fl' .gyp .ti0 .tip .tip §1.ti0 ,ti0 .tip ,tip .tip ,y0 .tip ,tip ,ti0 ,LO .tip .ti0 ,tip• til ti~ ,y3 yb' ,tis,yq�• y9 gyp, .L3 .yb .tis tib .y'1• . til ,,tip ,,tip ,,tip stip ,,tip �ytip ,,tip ��,tip �p stip stip �,y0 �jti0 �,.ti0 ,.tip �yy0 ��,y0 �yti0 �iti0 0. '-4-- LEASE EXISTING BLDNG—BUYBLDNG-100%PUBLIC BUYBLDNG-75%PUBLIC BUY BLDNG - 90% PUBLIC -• BUY BLDNG - 95%PUBLIC -- BUYBLDNG - 94%PUBLIC the table below summarizes the total cost differential between the various alterna-lives in both nominal, as well as present value, terms. TOTAL COST DIFFERENTIAL OPTION / TOTAL COST NOMINAL $ (BENEFIT) DIFFERENTIAL _ -- $ PRESENT VALUE $1,035,337 1_$14,520 ($98,904) j 100% PUBLIC .$1,664,793 95.5%, PUBLIC $156,046 95% PUBLIC ($11,593) 94% PUBLIC ($346,870) ($325,752) 90% PUBLIC ($1,687,979) ($1,233,144) 75% PUBLIC ($6,717,136) ($4,635,865) t1i FIELDMAN I ROLAPP .. & ASSOCIATES MEMORANDUM As illustrated in the table, the projected total annual cost of leasing the existing building over the next twenty years is lower than the 100% Public Use and the 95.5% Public Use of the building purchase scenarios. However, if the City had a private tenant occupying at least 5% of the space of the new building, the lease payments that the City would receive from that private tenant would be netted out of the total annual costs associated with the new building and would result in lower net annual costs than those under the lease of the existing building scenario. Thus, the City would benefit from acquiring the new building and relocating there under all scenarios in which it is contemplating some sort of private use of a portion of the building of at least 5%. This benefit ranges from a total of approximately $1.7 million to $6.7 million in nominal dollars under the 90% Public Use and the 75% Public Use scenarios, respectively, or a total of approximately $1.2 million and $4.3 million in present value dollars, respectively, using the CPI of 3.5% as the discount factor. If the City contemplated less than 5% of private use of the new building, its total annual cost over the next twenty years from the acquisition would be approximately $1.7 million higher (under the 100% Public Use scenario) or $156,000 higher (under the 95.5% Public Use scenario) on a nominal dollar basis when compared with the lease alternative, or approximately $1.0 million or $14,500 higher on a present value basis, respectively. FINANCING MECHANISM AND STRUCTURING CONSIDERATIONS 700% Cash Purchase The City has sufficient reserves to be able to cover the entire project cost of $12.2 million through a direct cash purchase. However, given the current economic uncertainty and the instability of State funding sources, we believe that it would not be prudent for the City to spend down such a big portion of its reserves'. In addition, funding the entire project cost from cash on hand would raise equity questions, since it would place the entire burden of financing the City Hall building, which will be around for many years serving the community, on the current residents versus spreading the cost over the useful life of the building among both current and future constituents. Furthermore, spending $12.2 million of the City's reserves on this project has an opportunity cost in that it would limit the City's ability to use some of these funds toward other public projects. Thus, we have assumed that using reserves to pay the entire r)roiect cost is not desirable, The City's Borrowing Capacity We have undertaken a review of the City's most recent financial statements for the past three fiscal years and the budget for the new fiscal year and have discussed with the financial staff of the City the flexibility of funding and revenues received by the General Fund as well as I By spending down a big portion of its reserves, the City would also be foregoing potential future interest earnings. Even though interest rates are low at present, over a longer time horizon, the City could be earning an average of 3.0%-3.5% on its fund balances, which would provide additional General Fund relief. 7 HELDMAN I ROLAPP & AssocvNrES MEMORANDUM existing fund balances of the City. Based on that review, we believe that the City can access tax-exempt financing on reasonable commercial terms in the capital markets. For purposes of our analysis, we have utilized current interest rates on both the tax-exempt public sale market, as well as the private placement market, for issues with similar credit characteristics. The focus of our analysis was to determine the level of flexibility of applying existing fund balances towards the costs of the project, as well as current and anticipated future revenues received or to be received by the City. Based on our research and discussions with staff and taking into account the existing 2002 Series A variable late bond issue -hot the City has outstanding, as well as the very conservatively estimated future revenues, we determined that, on a conservative basis, the City has over $900,000 per year for the first four fiscal years from FY2.010-2011 through FY2013-2014, and in excess of $700,000 per year thereafter that could be applied towards the project costs, including any possible borrowing costs. Thus, based on our review, we believe that the City has ample revenues available to pay debt service. Moreover, since we estimate that the debt service will not exceed approximately $700,000 per year in the later years, the revenues and balances are sufficient to provide comfort to the City and to bondholders. Thus, based on these very conservative revenues, we project that the City could finance a maximum of approximately $10.1 million of the project cost. However, when we account for the optimal borrowing term and the level of annual debt service that provides comfort to the City, our analysis demonstrates that the City could finance a maximum of aDoroximately,$8.8 million of the project cost. Structuring Considerations We believe that the ultimate source of repayment for any financing of the purchase of the building will be a lease obligation payable by the City and the Financing Authority from General Fund revenues. Given the City's outstanding 2002 Series A variable rate bonds, we felt that it would be prudent to structure the proposed financing as a fixed rate issue, so as to limit the City's variable rate exposure. In addition, given the fact that the building that is being considered is 9 years old, and that buildings typically have a useful life of forty to fifty years, we have assumed a maximum term of the financing of 30 years. We have utilized current market interest rates in the analysis and in the next section discuss the mechanisms available to the City for this financing. Financing Mechanisms We believe ihat the City could potentially have two ways of financing the acquisition of the bui!dinci: (i) a traditional tax-exempt municipal bond issue, and (ii) a private placement. Traditional Tax-exempt Mur icipal Bond Issue Through its Financing Authority, the City could sell a traditional bond issue with a maturity of up to 30 years on either taxable or tax-exempt basis. As was discussed previously, given the relatively small portion of the project costs that could potentially be used by a private entity and considering the current taxable municipal bond market, we believe that the City should consider a tax-exempt financing. In our analysis the proposed financing was structured on a tax-exempt basis to provide the total financeable project cost, fund a standard sized reserve FIELDMAN I. ROLAPP ..� & ASSOCIATES MEMORANDUM fund and cover the costs of the transaction, including the costs of professional fees, underwriting, and various insurance policies (e.g., title insurance). Stress tests were performed assuming 10 -year, 15 -year, 20 -year, and 30 -year terms and utilizing all of the available revenues, some of the available revenues, or scaling back and utilizing the very conservative revenue constraints we discussed previously to allow for additional comfort to the City. Thus, depending on the revenue constraints and the proceeds that could be generated, many scenarios were explored. After initial discussions with staff, we limited the analysis to the scenarios utilizing the most conservative revenue stream (i.e., excluding the NFL Stadium Settlement revenues). These scenarios are summarized in the table below. a'li" Publla;S'al ?,':Piiblic'S,ale';'�ubli'c`'S`ale"'',s?UOC.:Safe. Term (Years) 10 15 20 30 General Fund Contribution 6,545;590 4,797.820 3,442,565 2,084,638 Net Proceeds 5,654,410 7,402,180 8,757,435 10,115,362 Par Amount 6,515,000 8,470,000 9.925,000 11,290,000 Average Annual Debt Service 769,008 762,265 767,967 774,752 Maximum Annual Debt Service 937,121 936,298 938,015 936,898 Total Debt Service 7,818,244 11,561,025 15,487,335 23,371,678 Total Net Debt Service 7,166,744 10;714,025 14,549,320 22,434,780 Back -End Revenue Constraint 733,587 767.294 792,029 792,029 True Interest Cost 3.66% 4.32% 1 4.76% 5.55% If the City wants to finance a bigger portion of the total project cost of $12.2 million, then the 20- or 30 -year terms would be optimal and the scenarios with shorter maturities would not be able to generate that amount of proceeds. If, however, the City wanted to finance a lower project amount, then the other alternatives could be considered too. For example, the City could generate approximately $5.7 million or $7.4 million for the project under the 10 -year scenario' and the 15 -year scenario, respeciively. However, the City could raise the same amount of proceeds (or an even higher amount, as was just discussed) with a 20 -year or 30 - year bond issue, which would spread the annual debt service costs (i.e., result in lower annual debt service) but would result in more interest paid on the loan, or greater total net debt service cost%. Some of the advantages associated with the traditional tax-exempt public offering are: (i) the City could take advantage of the shape of the yield curve (lower interest rates in the early years and higher interest rates in the later years) and have a longer amortization of up to 30 years, (ii) the City could potentially reach a broader investor base, including a community outreach program, (iii) the City would establish a credit profile, and (iv) a standard 10 -yeas 2 The total net debt service summarized in the table for each scenario reflects the use of the cash funded debt service reserve fund toward the payment of the last year's debt service. FIELDMAN 1 ROLAPP & ASSOCIATES MEMORANDUM optional call provision could be included, allowing the City to refund the bonds in 10 years without any premium. Some of the disadvantages include: (1) higher transaction costs, (ii) the need to fund a debt service reserve fundi, (iii) the need to obtain a credit rating for the City, and (iv) potentially longer time frame for completing the financing. Traditional Private Placement Another financing alternative, similar to a real estate loan, is for the City to secure a direct private placement with a financial institution. Under this scenario, the City would not be issuing bonds on the open market, thus minimizing issuance costs and eliminating the need for market disclosure. If a private placement provider is secured, the financing could potentially have a term of up to 20 years, although usually private placements have much shorter terms. However, given its stable fiscal condition, the City could leverage that strength, as well as its existing banking relationships, to secure interest from various financial institutions. Our preliminary discussions with several institutions have been very positive and we believe that the City could obtain attractive private placement proposals even in today's challenging private placement market environment. As part of the analysis, we polled three institutions, which seemed willing to negotiate with the City a potential private borrowing. The rnaximum maturity for such borrowing for some of them was 10 years but 1 here were other options, which provided for 15- or 20 -year terms. The table below summarizes the preliminary results from those scenarios based on the current market interest rates that we received from the banks. Private. ..Private Type of Sale . , ,place'ment ;Placement Private Placement Term (Years) 10 15 20 General Fund Contribution 5,810,000 4,160,000 2.825,000 Net Proceeds 6,390,000 8,040,000 9,375,000 Par Amount 6.490,000 8,140.000 9,475,000 Average Annual Debt Service 768,073 762.641 768,458 Maximum Annual Debt Service 929,920 928,199 931,788 Total Debt Service 7.808,740 11,566,724 15,497.231 Total Net Debt Service 7,808,740 11,566,724 15,497,231 Back -End Revenue Constraint 733,587 767,294 792,029 True Interest Cost 3.60% 4.83% 5.25% 3 A cash funded debt service reserve fund could be invested and yield investment earnings that could be applied toward the payment of principal of and interest on the bonds. However, at least in the early years, these earnings will be very small because of the current low interest rates. In order to be conservative, we have not factored into the analysis any investment earnings on the reserve fund. Instead, all bond sizing scenarios assume a gross funded reserve fund. 10 FIELDMAN I ROLA.PP ...� & ASSOCIATES MEMORANDUM As illustrated in the table, utilizing the private placement approach and the most conservative revenue constraints, results in the ability to generate more net proceeds in any of the scenarios. This is so because the transaction costs associated with a private placement are significantly lower than in a public offering, which is one of the advantages of the private placement financing. In addition, under a private placement scenario, a reserve fund is usually not required. Furthermore, there is no need for a rating, offering statement or continuing disclosure. Next, there is flexibility in the structuring of the financing, namely that the principal can be amortized annually, semi-annually, or quarterly. A private placement can usually also be done in a more streamlined fashion, requiring less time from the start to the close of the transaction. However, because a private placement usually provides for one annual fixed rate throughout the life of the loan, the borrower cannot take advantage of the shape of the yield curve, which usually results in higher all -in interest rate and higher total net annual debt service. In addition, in most circumstances, the optional call redemption for a private placement borrowing is either limited or done at a premium, which restricts the borrower's ability to refund the bonds at a later date with more attractive interest rates. However, based upon our preliminary discussions with sev(.--rol °r'::;,":c:;ie l institutions, it might be possible to negotiate on behalf of the City an attractive optional call redemption feature, with no call premium, which would become effective half way through the life of the loan. FINANCING MECHANISMS COMPARISON General Comparison The table below provides a comparison between the two financing mechanisms discussed in the previous section of this report. In addition, detailed annual debt service schedules for each of the scenarios can be found in the Appendix. 10 YEAR TERM, FILL SOLUTION, CONSERVATIVE REVENUE CONSTRAINT Private , Cost Public Sale Placement Differential Total Present Value of Annual Net Debt Service _ — _T $1,328,/()22 $7,879,767 (tiS51,06',j 35 YEAR TERM, FILL SOLUTION, CONSERVAI EVE REVENUE CONSTRAINT PubllcSate Private Cost � Placement --- Differential foal PresentValueof Annual Nat Debt Service $10,418,655 $10,995,933`(5577,273) $ _ 20 YEAR TERM, FILL SOLUTION, CONSERVATIVE REVENUE CONSTRAINT _ Public Sale Private Cost Placement Differential _rota) Pmsent Value of Annual Net Debt Service — _ _ $13,155_'i10 _ 513,650,4/4 _ !/194, 56-11) 11 FIELDMAN I ROLAPP .."�` & ASSOCIATES MEMORANDUM As reflected in the summary table, the total present value4 of the annual net debt service is lower for the public sale option under all scenarios with a maturity of up to 20 years. This means that under all these scenarios, a public sale would be more cost effective to the City than a private placement. On a net present value basis, this benefit ranges from approximately $500,000 to over $570,000. Comparison of Optimal Structures After subsequent discussion with staff of the preliminary results of our analysis, it was determined that it would be optimal for the City to contribute a certain portion of the project cost from reserves and to finance the remaining cost of acquiring the building. Various scenarios were explored as to the optimal amount of reserves that could be contributed toward the project cost. As part of that analysis, we looked at the combination of desired average annual debt service from financing a portion of the project cost and the foregone potential future investment earnings that the City could generate on the reserves used to fund the remainder of the acquisition cost. The table below summarizes these results. FOREGONE INVESTMENT EARNINGS General Fund Contribution $3,442,565 $5,000,000 $6,000,000 $12,200,000 Total Foregone Investment $2,340,143 $3,398,836 $4,078,603 $8,293,159 Earnings ($ Nominal) Present Value of Total $1,645,900 $2,390,514 $2,868,617 $5,832,855 Foregone Investment Earnings As illustrated in the table, depending on the amount of reserves contributed toward the project, the City's foregone investment earnings over the next twenty years range between $2.3 mi!!ion and $B.3 million in nominal terms. On a present value basis, this translates into a potential investment loss of between $1.6 million and $5.8 million. faking ihis into consideration, a few additional financing explored, as presented in the tables on the following page. Theso altern0i,-•-.-; ';:c.;�r";;c::� ad a scenario of contributing approximately $3.4 million from accumulated reserves and a scenario of funding $5 million of the project cost from reserves. Both scenarios assumed that the remainder of the acquisition cost will be financed through either a private placement or a public borrowing. As iilustrated in the tables, contributing $3.4 million from the general fund results in financing a bigger portion of the remaining project cost and thus, in higher annual debt service. After analyzing the alternatives, accounting for the term of the borrowing and the projected annual 4 In order to calculate the present value of the stream of annual debt service payments, we assumed a discount factor of 3.5%, which approximates the average return on the City's investments over a longer time horizon. 12 FIELDMAN I ROLAPP & ASSOCIATES MEMORANDUM debt service, it was determined that a $5 million general fund contribution and a 20 -year financing generating $7.2 million would be optimal for the City. FINANCING OF $7.2M OF PROJECT COSTS FINANCING OF $8.8M OF PROJECT COSTS �'T ewt Sale ` YP * i '+; P1lpllc Sale Public Sale Public Sate Private'`• Placcrif'ent ' Piivate,q Placement 101'1 :Yra': l5 21 -13 15 23 Ge. erd' r.,ad Cor ;no❑ho • 5,0-0,007 =,0,-,C -iIJ 3 103.C'30 .00..'.CX 5,000,01.7 Nat pro^111,..1 7,2-30,003 7,101, OOZ 7,277,070 .,..,COC 7.270.0;0 P. Ano. it 9,245 OCO 3.2'5.013 8,1.15,003 i 303071 7,330,090 Aw au.2 A,; ran t>.•7 Su': -co I 741.032 -113=, :67 1,55,827 692.811 558.751 Mam, 1aT An•'a;al U•:.,' Su ,.. 919,001 000,87: 723.3;.+; ':;'18'1 573.075 7o:a10eb1S:1-i::n ibloi Nr.r U,;1,: S^'d:5 11,2.305/ 12.791.11'(2 16.767,433 10.;130,133 12.054,725 1:1,3231,.7 12 C.C. 1.86i 16,7,72 665 tO YD "33 12,064,725 .',-,,.k-E :C iia:„l:rl C'n;:; ant 792.175 7,?7.W' 792 :17.- +i:2 779 732:020 r:a,??,nra I•i.•,c: •r•,.,1• Ea:mnn, PI3af.:11 Vel•,lu: 7..342513 23117; 514 2.3:'17,'714 2.15.".,L1C 2.340.513 T:-- In'a'osl Cost 3.31"1 3 71:1•. 5 5690 r, 83k� 5 23-'ru 'In ;oda}•'a:'1-vktr, ll:r•.:b•Lly to ,:�tr: •� •:rrivr-�ptricerlr-n:;a this'rir••�extrerr^Iy :Liii;ult. 1*:.' •_:,),, ,, ,,,,•,,�,; TYPe`of S`ar9.4 :�;' nSr:y,t •,Cu ',,...:wr, PiJbI 4 S$le .{l;� 'tit •,'. •Pu66165'ale ?`+�Y �I? ya � �ti ;PJaCement. I.'n•Yea,1 20 30 20' G'ule:a I'u. d Corru.,:.'.o^ 3,42,553 ,442,x5 3,=7.,565 Ncl Pioc•1.x:s ?1,757,435 ti, 157 1;:5 8,7::7,435 Par A-ra.nl 3.935 000 :,2;JrJ9e P, 790 100 A•.rl•,m-3 Anrwd D -t1 5er,,ce 763.893 r • 1 7,2 %'21::21 Mexm•,;: n kvwal U: ;: So ace 943,o33 951,?O? 833,9n-3 ,wal D.bt Sew-, 15-506,107 233/:.1:75 :C,y:B,6,Y7 .4,541,850 i near Nei Doo1 S-oce 14.502.2114 22,454 Ii;Ck•Lrd Rc, .. i,e C.. sr.., t 792 C29 812 :::i% 7-32.1175 �5 Piesenl VaLe) :.646,930 1, 1,630 97:1 I rue I'ler.,t Cost .176% 0 .;' The tables also illustrate the projected debt service for a 30 -year public sale borrowing that generates net proceeds of $7.2 million. As can be seen, and as was previously discussed, the longer term of the financing allows the City to spread out the debt service payments over a longer time horizon, resulting in lower annual debt service payments, but significantly higher total debt service due to the additional interest that is paid on the loan over that period. This option has no private placement alternative with which to be compared, since there are no available private placement opportunities with a term of such length. CONCLUSION Our analysis indicates that the City could purchase the building it is considering. A primary feature of the purchase of the building is the fixed annual cost for servicing the debt issued to acquire the building. This compares with the assumed escalation in rent under the lease agreement for the existing building and the subsequent uncertainty in future leasing terms. In addition, the City, as a governmental unit, would not be liable for property taxes on owned real property,, which also contributes to the net benefits. These benefits are partially offset by the direct assumption of the maintenance costs of the building and the need to purchase insurance for the building. Moreover, if the City decides to use a lease structure for the 5 If the City leased a portion of the building to a private tenant, the County would then levy tax on that portion of the building and impose some sort of a possessory interest. However, the City could pass that cost on to the lessee as part of the lease agreement. 13 FIELDMAN I ROLAPP & ASSOCIATES MEMORANDUM financing of the acquisition of the building, it may incur some insurance costs for title insurance and business interruption insurance. Depending on the projected use of the building and accounting for the most conservative projection of future revenues, the City needs to fund a minimum of approximately $3.4 million of the acquisition cost from existing reserves. The contribution of part of the City's accumulated reserves reflects the participation of the current citizens of the City. The remaining portion of the project cost could be financed through either a standard tax-exempt public offering or through a direct private placement, which will signify the future generation's share of the project cost and will thus represent an equitable allocation between current and future residents of the City. In evaluating the advantages and disadvantages of one financing mechanism versus the other, the City will need to consider the factors discussed in this report and determine what its priorities are, as these priorities will dictate the optimal financing structure. Depending on the desired term of the borrowing and the cost being financed, from a financial perspective, it appears that a public sale is almost always more advantageous. This is predicated upon certain assumptions regarding the City's potential credit rating. However, due to the current national and regional economic challenges that cities face, especially in California, obtaining a favorable rating becomes more challenging every day. Any downward pressure on the rating would result in a significant interest rate increase and could potentially alter the results of this analysis. The advantage of the private placement, on the other hand, is that the City would not have to go through the rating agency process. In addition, the more streamlined process and shorter time frame for completion of the private placement (it could be done in 45 to 60 days), present less . , . ,:c y in the pricing. On the flip side, however, a private placement would require that the City amortize the loan over a shorter term, resulting in higher annual, as well as total debt service payments, when compared to the public sale alternatives of similar tenor. As discussed En this report, the comprehensive analysis of all factors influencing the City's ultimate decision -hot a general fund contribution of $5 million and a 20 -year borrowing genera",,a �:i.2 of nei proceeds would be the optimal alternative for the City. At present, it r°.;;,;r ;;: r..•.•.ether a traditional public sale or a private borrowing will be more beneficial Thus, we would recommend exploring both financing mechanisms in order to allow for flexibility in structuring the financing to achieve optimal results and ultimately selecting the mechanism that results in the lowest borrowing cost and debt service payments. We are very pleased to provide this analysis to the City and are available to answer any questions you might have. Thank you for the opportunity to present this information. 14 Fill] UN *� �IA DETAILED ANALYSIS FIELDMAN , ROLAPP IC 1 ATi S CITY OF DIAMOND BAR BUILDING ACQUISITION ANALYSIS ASSUMPTIONS y.'„»!"o-Z=-•:;'""a; 'Zfvta :;: ',^ 'km f`,".. FJ(ISTING Sl1ilDING� y -.,- r, .... .y3'' e..s *$••tt•mi:K Fi. v. r<u: ;�-3++`'. .. •� T •- "• � - .`12,1`17 square feet through2/28/2011 1. Existing building space being leased= $1.B5 per month through 2/28/2011. 2 Existing lease rate per square foot= 3 No matterwh,ch scenario the Gtyuses, it will continue paying the lease until it expires on 2/28/2011. $196II b the CPI. Square foo[ per month, escalating annus y y 4 New lease will begin on March 1, 2011 and will be = 0% per 35t/% 5 Annual CPI assumed to equal footage,,.e 15,678 6. If City remains in the existing building and renews lease, from March 1, 2011, City will releasing greater square $500 7 Beginning March 1, 2011, City will be paying for the use of the auditorium a monthly fee of 8 Assume that the auditorium fee escalates annually by the CPI as well every March 1 of everyyear. $1,700 9 City is currently paying storage lee every year of approximately $20,000 or monthly fee ofapproxlmately 30 Assume that the storage fee is also escalated annually by the CPI beginning every March 1 of every new year. Assume expdns,on/refurbishment costs of $350K in FY2011-2012 comprised of one-time costs of $250,000 to renovate expanded space $350,000 11 and $100,000 to provide for improvements to existing spaces including front counter area, paint, carper, etc. - i.T"a"' .>:x`-`:: �8-",�`C'-.:"* :"t'it3Y6escn'2;••hi' ' .. ... __ - - .,i:. _- hit - NEW &U�LCIN6;' ii, t- a;}}„� ,, ....,, .t......,.,-r«,.,s,a:,.,,..z.....c-;�iiae`s.:..IaYia^>a anl�t%s 'rl„'ssr,y�se,ae.��' °"`,• 55,095 12. New budding square footage = $10,200,000 13 Cost of building in as-,s•ccudmon= $1,000,000 14 Tenant,mprovements/conztmchbn costs fornew building assumed at one-time $1,000,000 15. Relocation costs to new budding estimated at one-time $45 0 16 New budding annual 0&M costs fall-mclusrve), effects- March 1, 2011, estimated at $0,0 190 $3 9 17. If portion of new budding leased, assume...tial monthly lease rate per square foot effective March 1, 2011 of 18. Assume that the lease of the new budding escalates by the CPI annually on every March 1, starting March 1, 2012. $1,784 19 Monthly association dues of new building 20 Association dues of new building escalate annuallyby the CPI starting July 1, 2012 21 Assume that annual 0&M expenses for new building escalate annually bythe CPI every July 1, beginning July 1, 2012. 22 Under the 25% private option, the private use square footage of the new bu,ldmg is 13,774 41,321 23 The 75% public use of the new building will equate to square footage of 5,510 24 Under the 10%privateoption, the private use square footage of the new budding,s 2,755 2S Under the 5%privateoption, the private use square footage of[he new building is 3,306 26 Under the 6% private cii the private use square footage of the new budding ,s 2,479 .,t.., e.. a h,.,.,. nr thr nrn• b,il p•s -_ _ -- _ - - - -. - " : - - - __ •_ - = -_ '� 3=�s Bks;”. -v r- 5•w''�.-,. _ :." � _3 N[s:'fICVENJCS _ - _ _- __- -__ - _ _ - - _ _ __ .Y. _ _ -.z_i•`��.7:"A sN.�Y-..-,�--nYe�-�s'-, :.F:-^s�.� _ _ -_ __ ..::_ . .. .. .. . .. ..: . • -- -, , rk .�. -.. it,+de.�.:[S.^.:> _.. -_ -?=.9:.✓?xS-._.a- a.-9•i.2_'[da34ir ., •I a,�r•:I,-,. 1.: , - r' •-. :, I.rs,•nrl,•hni:.s:-,.0:rl'::': ill :y ir .I. rill. I,•v. it provider corresponding relief to the General Fund. This revenue Is estimated to begin August 1, 2014 and bases on is year dehnea $700,000 as August 1st through July 31st, Thus, it is art Forced that this revenue will be received August 1 of each year, beginning in 2014. For simplicity and to be conservative, it ,s assumed that there ,s no increase ,n this revenue 29, The newly negotiated franchise fees begin on August 1, 2010 and amount to $354,000 per year. They are based on gross receipts try the waste ....ponies and accordingly,,f the companies raise their fees or add additional accounts, these revenues will increase. The first 5354,000 receipt of these revenues will be in FY2010-11, but only for 11 months 30. The newly negotiated street sweeping fees begin on August 1, 2010 and amount to$85C00 per year, adjusted annually by the CPI The S85,000 first receipt of these revenues will be In FY 2010.11, but only for 11 months 31 The newly negotiated solid waste veh,cle,mprovement/road maintenance fees begin on August 1, 2030 and amount to.$115,000 per $115,000 year, adjusted annually by the CPI, The first receipt of these revenues will be in FY2010-11, butonly for 11 months. 32 It Is assumed that if the Gty decides to purchase the new budding and relocate, it will continue occupying the existing building it n leasing until that lease expires at the end of February, 2011 ,,tlVgNTEn1iNIf5;4N'$ tCUMUiA TJ:D.�Y'�ttM�:.;,.>m".s�L. w.a��.,.�,a..�.�'�`^'• 33 Accumulated reserves are assumed to be invested at 1.2% for the first 3 years, Z% for years 4 and 5,2.5% for years 5 through 10, 3% for 120% 2.00% 250% 3.00% 3.50% -ixyears 11 through 15, and 35% for any subsequent yea-....................:......«,..._......-.,s...,..r..,s=,.,.,-.r�„:..,,e.«,-Ta.,,.-,-.n,-..,.,.=;..a.x-<,-mT+.-�K.-.es.. -o.,- .,,.,,-y.riwo.o-...- ,-»n-:•aa.-..r•n.-.r,w*�.,. ,.ro»n•,..n YIELD\MAN TiC7LAl'P Did" and Bar CITY OF DIAMOND BAR BUILDING ACQUISITION ANALYSIS EXISTING BUILDING - ANNUAL EXPENSES • ;' '�; ;•L'e8s"e ... •,x `.. . E p' ..: e. ,0.ense;: Ex 'enses,' f, +,E. 'in Expense ••a:-SLorage' Expans�onjRctumisNmegt[osts^� Totel}" ' , ,1!!�•�r ,$20,636 FY2010-2022 S102,247 $1,0.03 - Si1',BriS FY2011.2012 368,747 6,070 21,360 350,D00 746,177 FY2012.2013 381,653 6,282 22,108 410,043 FY2013.2014 395,011 6,502 22,882 424,395 rY2014-2015 408,836 6,730 23,683 - 439,248 FY2015.2016 423,145 6,965 24,511 454,622 FY7016.2017 437,955 7,209 25,369 - 470,534 FYZ017-2018 453,284 7,462 26,257 - 487,003 FYZ018-2019 469,149 7,723 27,176 - 504,D48 FY2019.2020 485,569 7,993 28,127 - 521,689 rY2020-2021 502,564 8,273 29,112 - 539,948 FY2021-2022 520,153 8,562 30,131 - 55B,847 FY2022-2023 538,359 8,862 31,185 - 578,406 FY2023-2024 557,201 9,172 32,277 - 598,650 FY2024-2025 576,703 9,493 33,407 619,603 FYZUZS•Z026 596,888 9,825 34,576 - 641,289 FY2026-2027 617,779 10,169 35,786 - 663,734 FY2027-2028 639,401 10,525 37,039 685,955 FY2028-2029 651,780 10,894 38,335 711,009 FY2029-2030 $684,943 $11,275 $32,946 $729,164 IF CITY STAYS IN EXISTING BUILDING THROUGH END OF FEBRUARY, 2011, ITS FY 2010.2011 COSTS WILL BE AS FOLLOWS: I vialli 20? 1 Lease Expenses 179,332 CITY OF DIAMOND BAR BUILDING ACQUISITION ANALYSIS NEW BUILDING (100% PUBLIC OPTION) - ANNUAL EXPENSES ;...; :aa•... . .,., , w „ .. • .:. . .... .�IpJ.'. i,br e.. ;�;r-.. ..iJs' :$'•...'�;,':p`, .... '>:•,;. �;rSJ :�;, :, 4+"itiyi:'7'y:,i�..x•,,.. t� �:Y�:' ,�^; ;,n,,;�, ,,•n�. , „•,.,.:.., '""'',`', r'8 FY2030-2011 $10200 000 $ . , ].,000,000 $1,000,000 $150,000 ....,,.+.;$19,..., $7,136 2,932 $ O;. 12,550,fi FY2011-2012 FY2012-2013 450,000 21,408 - $ 471,408 FY2613-2014 465,75D 22,157 $ 487,907 FY2014-2015 482,051 22,933 $ 504,984 FY2015-2016 498,923 23,735 $ 522,658 FY2016-2017 516,385 24,566 $ 540,952 . FY2017-2018 534,459 25,426 - $ 559,885 FY2018-2019 553,165 26,316 $ 579,481 FY2019-2020 572,526 27,237 $ 599,763 FY2020-2021 - - 592,564 28,190 $ 620,754 FY2021-2022 - 613,304 29,177 $ 642,481 FY2022-2023 - 634,769 30,198 $ 664,968 FY2023-2024 - 656,986 31,255 $ 688,241 FY2024-2025 679,981 32,349 $ 712,330 FY202-2026 - - 703,780 33,481 $ 737,261 FY2026-2027 - - 728,413 34,653 $ 763,066 FY2027-2028 753,907 35,866 $ 789,773 FY202-2029 - - 780,294 37,121 $ 817,415 FY2029-2030 - 807,604 38,420 $ 846,024 835,870 39,76$ - $ 875,635 Actual annual cost (net of purchase and TI/relocation, costs) $350,068. F]ELDMAN' ROLAPP w ; %Tf' r rT� , D1ama _' o n d B a,. r CITY OF DIAMOND 6AR BUILDING ACQUISITION ANALYSIS 19ELDSIANT P,OLAPP Z5'.', T D.I,%.-G U"•A'5., '.'r'I?Il'A_'EZ)I,•TIO;)-. N_•.;'-.:0.••1CtiA'eP.Fat:eSf_t5' :n.C. ,,,..•,ry EBUII .,I. .P..B:IC- eu lane Pu:•h,x .n':;.. ,.•i nnualD&MAonaba.Plki+ ?NS.i Istl�n'g •'idn'grCW ,, keVca FR B .. .. . Total,, t•:. ... I)[onsttuitlo cost,., sPs'•a cs Fru70 ni„ ,,`•... st ;y •:, ._... `11,7,932 .;r FY20102011 ..•., ...r ,. ....a' ..x ..4.. x ,,+FExpc 5,32,!')%'.v -�I„?'.'X.07 •1:133J.71 IaJ,070 e s ... .. ._. 7,1 i5.7t .,, ., .. Il^.L,1Lr', $12,445,387 FY2011.2012 - - - 450,D00 21,408 (314,042) - $157,367 FY2012-2013 - - - 465,750 22,157 (325,033) - $162,674 PY2013-2014 - - - 462,D51 22,933 (336,409) - $168,575 FY2014.2015 - - - 498,923 23,735 (348,183) - $174,475 FY2015-2016 - - 516,385 24,556(360,370) - $180,582 FY2016-2017 - - - '534,459 25,4Z6 (372,983) - $186,902 FY2017.2018 - - - 553,165 26,316 (336,037) - $193,444 FY2018-2019 - - - 572,526 27,237 1399,548) - $200,214 M019-2020 - - - 592,564 28,190 (413,533) - $207,222 FYZGZO-2021 - - - 613,304 29,177 (428,006) - $214,474 FY2021-2022 - - - 634,769 30,198 (442,987) - $221,981 FY2022-2023 - - 656,986 31,255 (458,491) - $229,750 FY2023-2024 - - - 679,981 32,349 (474,538) - $237,792 FY2024-2025 - - 703,780 33,481 (491,147) - $146,114 FY2025-2026 - - - 728,413 34,653 (508,337) - $254,728 FYZ026-2027 - - - 753,907 35,866 (526,129) - $263,644 FY2027.2028 - - - 780,294 37,121 (544,544) - $272,871 FY2028.2029 - - - 907,6D4 38,420 (563,603) - $282,422 FY2029-2030 - - - 835,870 39,765 (583,329) - $292,307 NEW BUILDING (905'. PUBLIC -10% PRIVATE OPTION) -NET ANNUAL EXPENSES .• Boildmg Pu•ch.ise", :. - '. "„ . ,;• Annual f7RM: TI/Consttuc4iori Costs Itelocatlnd EspenSls Mwl,rti00e1 un'rRnv-k •' From L4a94Existing xisting m!1.0,, Cost o WI Tam ' Cost ... . .. :.. •Esos•nses'... .. •192.9)2 FY2010-2011 5,1r,7W tI'J,I 10 19 011) 1,:JD,�Li 1,:•:1:0 7,:36 (41,F72) $12,.OB, m FY2011-2012 - - - 450,ODO 21,4DB (125,617) - $345,791 FY2012-2013 - - - 465,750 22,157 (M,013) - $357,694 FY2013-2014 - - - 482051 22,933 (134,564) $370,420 FY2014-2015 - - - 498,923 23,735 (139,273) - $383,385 FY2015-2016 - - - 516,385 24,566 (144,148) - $396,804 PY2016.2017 - - - 534,459 25,426 (149,193) - $410,692 FYZ017-2018 - - - 553,165 26,316 (154,415) $425,066 FY2018-2019 - - - 572,526 27,237 (159,819) - $439,943 FV2019-2020 - - 592,564 28,190 (165,413) - $455,341 FY2020.2021 - - - 613,3D4 29,177 (171,203) - $471,278 FY2021-20ZZ - - - 634,769 30,198 (177,195) - $487,773 FY2022-2023 - - - 656,986 31,255 (183,396) - $504,845 FY2023-2024 - - 679,981 3Z,349 (189,815) - $522,515 FY2024-2025 - - 703,780 33,481 (196,459) - $540,803 FY2025-2026 - - - 728,413 34,653 (203,335) - $559,731 FY2026-2027 - - - 753,907 351866 (210,452) - $579,321 FY2027-2028 - - - 780,294 37,121 (217,817) $599,597 FY2028.2029 - - - 807,604 38,420 (225,441) - $520,583 FYZa29-2030 - - - 835,870 39,765 (233,331) - $642,304 NEW BUILDING (9596 PUBLIC - 5% PRIVATE OPTION) - NET ANNUAL EXPENSES 00dln8 Puschn. Cnsts RAnm .1 ORM TI/Cnrstrurbnn nlnyn:lun Eapnnsr:s A w:nucs ssut�,+bun Duus Rec.rsc - Frum L Ea'rsting eldng losT..) To C05t Fapenlc5 FY20102921 :': 0', J.)0 _ .!',DO 1';70,0• 1,:r,0U, 7, 13n,7f,r!64 y5.7532 512,529,132 FY2011-2012 - - - 450,000 21,408 (62,808) - $408,600 FY2012-2013 - - - 465,750 22,157 (65,007) - $422,901 FY2013.2934 - - - 482,051 22,933 (67,282) - $437,702 FY2014-2015 - - - 498,923 23,735 (69,637) - $453,022 FY2015-2016 - - 516,385 24,566 (72,0741 - $46%878 PM16-2017 - - - 534,459 25,426 (74,597) - $485,288 FY2017-2018 - - - 553,165 26,316 (77,207) - $502,273 FYZD18-2019 - - - 572,526 27,237 (79,9101 - $519,853 FY2019-2020 - - 592,564 28,190 (82,707) - $538,046 FYZO20-2021 - - 613,304 29,177 (85,501) - $555,879 FYZGZS-2022 - - 634,7G9 30,198 (88,5971 - $576,370 FY2022-2023 - - 656,986 31,255 (91,698) - $596,543 FY2023-2024 - - - 679,981 32,349 (94,908) - $617,422 FYZOZ4-2025 - - - 703,780 33,481 (98,229) - $639,032 FY2025-2D26, - - - 728;413 34,653 (101,667) - $661,398 FY2026-2027 - - - 753,907 35,866 (105,226) - $664,547 FY2027-ZD28 - - - 780,294 37,121 (108,909) - $708,506 F'YZOZS-2029 - - - 807,604 38,420 (112,721) - $733,304 PY2029-2030 - - - 835,870 39,765 (116,666) - $758,970 19ELDSIANT P,OLAPP Dia'" m'ond Bar CITY OF DIAMOND BAR BUILDING ACQUISITION ANALYSIS FfF.(tJ\4r1K CC)t,.4Pf' NEW BUILDING (95.5% PUBLIC- 4.5%PRIVATE OPTION) - BREAK EVEN OPTION • NET ANNUAL EXPENSES �.,. . ..,,r.. „Building PJrchaac• .q.:-:r'Y'',� :`h'�Ani•ua�08Ai1,`•':,{.i? ra _ �`7:'i'!i{; ::4'r"- RevelWCs '7i":+ t'.'.Ex(6iinB COS ' .C" �'•i,'., ,. ''. "': 1. ... 7I/COnstfllEil011 E0iii'kEfoWEloifFx�/enscS`,+ '$.^^ ;. e•.ids'sgrJ,liiOn, es .S From Le, Sldrig• •. C'osl�,-' .. ,.... .. ..'Ewpen3ctii'" -.... L...r. ',.de'?•:."..e.,9-. - -... ,i uu..•,136 :'•^kn'1.4:)i.•,- 711-).. .. ., ..,.51AOO:,,L •$12,531.225 FY20102011.. SI0,21K(Y)7� ::G".,7.Tv 53••1 la'I,OY1 17:u"• FY2011-2012 - - - 4SC,000 21,408 (56,527) $414,881 FY2012-2013 - - 465,750 22,157 (58,506) $429,401 FY2013.2024 - 482,051 22,933 (60,554) $444,430 FY2014-2015 - - - 498,923 23,735 (62,673) $459,985 FY201S•2016 - - - 516,385 24,566 (64,867) $476,085 FY2016-2017 - - 534,459 25,425 (67,137) $492,748 FY2017-2018 - - 553,165 26,316 (69,487) $509,994 FY2018-2019 - - - 572,526 27,237 (71,919) $527,844 PY2019.2020 - - 592,564 28,19D (74,436) $546,318 FY2020-2021 - - - 613,304 29,177 (77,041) $565,440 FYZ021-2022 - - - 634,769 3D;198 (79,7281 $585,230 FY20224023 - - - 656,986 31,255 (82,528) $605,713 FY2023.2024 - - - 679,981 32,349 (85,417) $626,913 FY2024-202S - - - 703,780 33,481 (88,406) $648,855 FY2025.2026 - - - 728,413 34,653 (91,501) $671,565 FY202&2027 - - - 753,907 35,866 (94,703) $695,070 FY2027-2028 - - - 760,294 37,121 198,018) $719,397 FY2028-2029 - - - 807,604 38,420 (101,448) $744,576 FY2029-2030 - - - 835,870 39,765 (104,999) $770,636 NEW BUILDING (94% PUBLIC - 6% PRIVATE OPTION) - NET ANNUAL EXPENSES FY2014-2015 !!.... a '., .L .. •:k•A ' I'P,,.......•l:n.,Y 4140.x, .. :wn •'I .1�, .. • .. !17:71. B•'r ,4•..bF . J'f.:. ..L• n :I:Bf: ,: .J.... 450,000 ..., 1250,000) $700,095 FYZ015-2016 454,622 540,952 86,329 591,537 , r.., " FY2011-2012 - - - 450,000 21,408 (75,370) - $396,038 FY2012-2013 - - - 465,75D 22,157 (78,008) - $409,899 FY2013-2014 - - - 482,051 22,933 (80,738) - $424,246 FY2014-ZOIS - - - 498,923 23,735 (83,554) - $439,094 FY'2015-2016 - - - 516,385 24,566 (86,489) - $454,463 FY2016-2017 - - - 534,459 25,426 (89,516) - $470,369 FY2017-2018 - - - 553,165 26,316 !92,649) - $486,832 FY2018-2019 - - - 572,526 27,237 (95,892) $503,871 FY20IS-202D - - 592,564 28,190 199,248) $521,505 FY2020-2021 - - 613,304 29,177 (102,722) - $539,759 FYZOZI-2022 - - - 634,769 30,198 (106,317) $558,651 FY2022.2023 - - 656,986 31,255 (11(,038) $578,204 FY2023.2024 - - 679,981 32,349 (113,889) - $598,441 FY2024-2025 - - - 703,780 33,481 (117,875) - $619,386 FY2028-2026 - - - 728,413 34,653 1122,001) - $641,065 FY2026.2027 - - - 753,907 35,856 (126,271) - $663.502 FYZ027-2028 - - 780,294 37,121 1130,69D) - $686,724 FYZ028-2029 - - - 807,604 38,420 (135,265) - $710,760 FY2029.2030 - - - 835"870 39,765 1139,999) - $735,636 FfF.(tJ\4r1K CC)t,.4Pf' JO?K..wmNG fAp4ci71' 21 iF.UC !'Ot:S-RAlA7< DIFFERENCE IN ' ANNUALCOST., CONSE RVATIVE NEW '.NEW EXISTING fiEBFRAI TOTAL GENERAL ADJUSTMENT FOR TOTAL GENERAL F%15TING LEASED BUYING NEW BETWEEN LE0.61NG RFVENUE SDURCES NFT REVENUE, REVENUE FUND REVENUE POTENTIAL FUTURE FUND NET REVENUE BUILDING ANNUAL BUILDING- PUBLIC EXISTING BUILDING W/O NFL STADIUM AVAILABLE FOR DEBT INCREASE IN DEBT AVAILABLF FOR DEBT'AVAILABLE FOR NEW AVAILABFOR NEN LE EXPENSES OPTION ONLY • AND BUYING NEW ,SETTLEMENT SERVICE SERVICE � .DERT SERVICE SERVICE ON E%ISTIN DEBT SERVICE • BUILDING1100% REVENUES' 2002A VRDBS PUBLIC OPTIDN) I V20102011 ,474 au- �.,", ).,� .. x157 +i77,hr3 .:•4)f•'•i S•:55?�OO ,--. - 5532,651 FY2011-2012 746,177 471,408 (274,769) 561,OOD 835,769 450,ODD 1,285,769 $1,285,769 FY2012-2013 410,043 487,907 77,864 568,245 490,381 450,00) 940,381 $940,381 FY2013-2014 424,395 504,984 80,589 575,744 495,154 450,000 945,154 $945,154 FY2014-2015 439,248 522,658 83,410 583,505 500,095 450,000 950,095 1250,000) $700,095 FYZ015-2016 454,622 540,952 86,329 591,537 505,208 450,000 955,208 (250,000) $705,208 FY2016-2017 470,534 559,885 89,351 599,851 510,500 450,000 960,500 (250,000) $710,500 FYZ017-2018 487,003 579,481 92,478 608,456 515,978 450,00D 965,978 (2S0,60D) $715,978 FY2018-2019 504,048 599,763 95,715 617,362 521,647 450,000 971,647 (250,000) $721,647 FY2019-2020 521,689 620,754 99,065 626,579 527,514 450,000 977,514 (250,000) $727,534 FY2020-2021 539,948 642,481 102,537 636,120 533,587 450,000 983587 (250,000) $733,587 FY2021-2022 558,847 664,968 106,121 645,994 539,873 450,000 989,873 (250,DD0) $739,873 FY2022-2023 578,406 688,241 109,835 556,Z14 546,379 450,D00 996,379 (250,000) $746,375 FY2023-2024 598,650 712,330 113,679 666,791 553,112 450,000 1,003,112 (250,000) $753,11: FY2024-2025 619,603 737,261 117,658 677,739 560,081 450,000 1,010,081 (250;000) $760,063 FYZOZS-2025 641,289 763,066 121,776 689,070 567,294 450,D00 1,017,294 (250,000) $767,294 FYZ026-2027 663,734 789,773 126,038 700,797 574,759 4SO,000 1,024,759 (250,DDD) $774,755. FY2027-2028 686,965 817,415 130,450 712,935 582,485 450,000 L032,485 (250,000) $782AE5 FY2028-2029 711,D09 846,024 135,015 725,498 590,482 450,DDO 1,040,462 {250,00D) $190,481 FY2029-2030 5729,164 5875,635 5146A72 $738,500 $592,029 $450,000 $1,042,029 ($250,00)) $792,025 FfF.(tJ\4r1K CC)t,.4Pf' CITY OF DIAMOND BAR BUILDING ACQUISITION ANALYSIS CONSERVATIVE NEW REVENUE SOURCES (EXCLUDING NFL STADIUM SETTLEMENT REVENUES) - ESTIMATED ANNUAL REVENUES FY2010-2011 $324,500 $77,917 $105,417 $507,833 FY2011-2012 354,000 87,975 119,025 $561,000 FY2012-2013 354,000 91,054 123,191 $568,245 FY2013-2014 354,000 94,241 127,503 $575,744 FY2014-2015 354,000 97,539 131,965 $583,505 FY2015-2016 354,000 100,953 136,584 $591,537 FY2016-2017 354,000 104,487 141,364 $599,851 FY2017-2018 354,000 108,144 146,312 $608,456 FY2018-2019 354,000 111,929 151,433 $617,362 FY2019-2020 354,000 115,846 156,733 $626,579 FY2020-2021 354,000 119,901 162,219 $636,120 FY2021-2022 354,000 124,097 167,897 $645,994 FY2022-2023 354,000' 128,441 173,773 $656,214 FY2023-2024 354,000 132,936 179,855 $666,791 FY2024-2025 354,000 137,589 186,150 $677,739 FY2025-2026 354,000 142,405 192,665 $689,070 FY2026-2027 354,000 147,389 199,408 $700,797 FY2027-2028 354,000 152,547 206,388 $712,935 FY2028-2029 354,000 157,887 213,611 $725,498 FY2029-2030 $354,000 $163,413 $221,088 $738,500 HELDMAN ; ROLAPP 71;4" 1)1-!,y1Lll1ol-ld " C1'M pF DIAMOND BAP CITY OF DIAMOND BAR BUILDING ACQUISITION ANALYSIS PUBLICSALE Dzam and Bau, n:. 'L H[GLDXIAN1 ROLAI'I' `$223,9600 PRIVATE PLACEMENT �-,$224,194 10 Year rnrm FY2010-2011 $166,902 15 Yet 1 $269,227 $367,519 $357,196`- $356,D39 Scenario I Annual Net $192;422 $425,841 FY2011-2012 $887,921 5873,888 $862,093 $840,177 $844,616 $837,899 $739,752 $662,209 $693,552 FYZ012-2013 $930,797 $932,721 $931,707 $936,423 $935,684 $933,986 $800,017 $712,860 $807,187 FYZ013-2014 $934,549 $937,842 $937,954 $940,051 $939,071 $937,373 $802,357 $715,844 $809,404 FYZ014-2015 $988,537 $1,383,839 $990,336 $1,385,839 $989,416 $987,718 $559,904 $474,251 $864,909 FY2015-2016 $986,799 $1,378,452 $988,100 $1,381,751 $991,051 $989,353 $562,975 $478,428 $363,334 FY2016-2017 $985,085 $1,376,151 $986,926 $1,382,139 $989,592 $987,894 $569,283 $481,146 $860,314 M017-2018. $979,471 $1,373,306 $992,656 $1,378,122 $985,746 $984,048 $574,073 $487,590 $361,119 FY2019-2019 $980,205 51,370,337 $985,440 $1,375,084 $984,691 $982,993 $577,451 $492,754 $860,790 FY2019-2020 $977,357 $1,367,412 5980,395 $1,373,124 $986,39U $984,692 $584,374 $496,682 $659,404 FY20211-2021 $174,297 $355,882 $982,787 $1,372,562 5986,029 $979,443 $589,880 $499,494 $857,109 FY2021-2022 - - $977,827 $1,373,616 $983,850 $982,375 $594,090 $506,185 5858,913 FY2022-2023 - - $975,634 $1,371,338 $984,832 $978,473 $601,930 $511,674 $859,749 FY2023-2024 - - $975,952 $1,370,573 $933,839 $977,714 $608,262 $520,823 $859,605 FY2024-2025 - - $973,596 $1,366,107 $980,815 $974,930 $613,040 $523,593 $858,452 FYZDZS-2025 - - ($16,966) 07,782) $980,585 $974,944 $621,096 $529,940 $856,264 FYZ026�2021 - - - - $977,967 $977,449 $627,257 $539,577 $857,889 FYZ027-2028 - - - - $977,771 $972,381 $631,470 $547,328 $853,298 FY2028-2029 - - - - $974,801 $974,538 $638,550 $553,140 $857,326 FY2029-2030 - - - - $973,944 $968,813 $638,501 $552,141 $854,855 FY2030-2031 - - - - ($20,914) ($19,216) ($156,583) (5129,465) $851,047 FY2031-2032 - - - - - - - 5974,938 $849,916 FY2032-2033 - - - - - - - - $851,111 FY2033-2034 - - - - - - - - $850,288 FY2034-2D35 - - - - - - - - $647,440 FY2035-2036 - - - - - - - FY2035-2036 $847,390 FY20364D37 - - - - - - FY2036-2037 - $844,987 FY2037.2038 - - - - - - - - $845,117 FY2038-2039 - - - - - - - $842,674 FY2039-2040 - - - - - - - - $842,562 FY2040-2041 - - FY2040-2041 - - - ($25,255) TOTAL $8,991,919 $11,573,787 $13,783,663 $18,196,639 $18,786,971 $18,723,837 $12,001,867 $10,348,612 $24,926,588 H[GLDXIAN1 ROLAI'I' PRIVATE PLACEMENT 10 Year rnrm 10 Ycer rnrm 15 Va.,, lo.m' 15 Yet 1 7.0 YearTonn 70 Year Tenn' 20 Yeai Tenn Vnrm T Scenario I Annual Net 'Fill SolutlOn Fill Solution Fill Solution FI:I Solution Fill Solution Uniform Solution • U'n8onn Solution Uni,fr ormm Soiutln0 Debt SPIYI[L• Cornerea-Revs AS-1-Rcvs Rws ASms ve R.- CnnservetNd Rerf S7.2M Not Procreds S6.2bY Net N.'"ds 511.2PA Net ,Cu6srvntive FY2010-2011 $192,960 $245,280 $329,245 $428,904 $417,200 $255,SOD 5220,500 5395,500 rY2011-2012 $873,730 $863,830 $840,294 $819,009 $825,419 $534,181 $462,206 $778,263 FY20122013 $925,960 $929,120 $925,612 $932,296 5931,506 $599,075 5513,544 $880,269 FYZ013-2014 $931,300 $932,430 $932,670 $937,082 $933,919 $596,738 $513,044 $883,731 FY2014-2015 $984,660 $1,375,740 $982,191 $1,380,034 $988,838 $598,744 $516,888 $934,831 FY2015-2016 $981,130 $1,376,730 $984,177 $1,375,790 $986,263 $595,094 $515,075 $938,436 FYZ016-2017 $981,610 $1,375,380 $919,835 $1,374,735 $987,506 $595,788 $512,738 $935,863 FY2017-2018 $981,010 $1,377,450 $979,165 $1,376,627 $982,569 $595,694 $514,744 $937,106 FY2013-2019 $979,330 $1,372,99D $981,924 $1,375,346 $986,319 $594,813 $515,963 $932,169 FY2019-2020 5981,480 $1,372,000 $978,114 $1,373,891 $983,625 $593,144 $511,525 $931,050 FY2020-2021 $982,370 51,374,300 $977,735 $1,374,142 $984,488 $595,556 $511,431 $933,488 FY2021-2022 - - $980,544 $1,371,978 $983,775 $592,050 $510,550 $934,350 FY2022-2023 - - $976,541 $1,367,399 $981,488 $592,525 $513,750 $933,638 FY2023-2024 - - $975,728 $1,370,164 $977,625 $592,150 $511,031 $931,350 FYZ024-2025 - - $977,862 $1,365,151 $977,056 $590,625 $512,394 $927,488 FY2025-2026 - - $972,943 $1,367,240 $979,519 $592,919 $512,706 $926,919 FY2026-20Z7 - - - - $975,013 $589,031 $511,969 $929,381 FY2027-2028 - - - - $978,406 $588,963 $510,181 $924,875 FY2028-2029 - - - $974,569 $592,450 $507,344 $923,400 FY2029-2030 - - - - $973,500 $589,494 $508,325 $924,594 FY2030-2031 - - - 5974,938 $590,094 $507,994 5923,525 FY2031-2032 - - - - - - - - FV2032-2033 - - - - - - - - FVZ033-2034 - - - - - - - - FY2034-2035 - - - - - - - - FY2035-2036 - - - - - - - FY2036-2037 - - - - - - - - FY20374038 - - - - - - - - FY2038-2039 - - - - - - - FY2039-2040 - - - - - - - - FY2040-2041 - - - - - - TOTAL $9,795,540 112,596,300 $14,774,578 $19,590,789 $19,783,538 $12,064,725 $1D,413,900 $18,760,425 H[GLDXIAN1 ROLAI'I' L.lT- ia` CITY OF DIAMOND BAR BUILDING ACQUISITION ANALYSIS 10 YEAR TERM, FILL SOLUTION, CONSERVATIVE REVENUE CONSTRAINT i' ,((''•'r'' ,Y. {YIF^, .rTlYa"'"'•.e 7�.Cr,,: iv;f' wL.: fy,. SIA 'w;yj >+;. a :Pfigate,:,' Cost •+ : �'� :r. �P lilic� afe a•.;n : v;-^" a;,r.,r,....,., ra. , a,s, :PlaceFtii;nt�, biffareiitlal Total Present Value of Annual Net Debt Service $7,328,702 $7,879,767 ($551,065) 10 YEAR TERM, FILL SOLUTION, AGGRESIVE REVENUE CONSTRAINT :,•' Private, Cost' a, al ! ubli � e• `.P c• S Pfaci:fiient Differentia{ Total Present Value of Annual Net Debt Service $9,320,380 $10,021,592 ($701,212) 15 YEAR TERM, FILL SOLUTION, CONSERVATIVE REVENUE CONSTRAINT Private, Cost - Public Sale ,.' " :Placement Differential Total Present Value of Annual Net Debt Service $10,418,655 $10,995,933 ($577,278) 15 YEAR FILL SOLUTI( Public Sale Private, Cost " Placement .' Differential Total Present Value of Annual Net Debt Service $13,587,264 $14,400,692 ($813,428) AGGRESIVE REVENUE CONSTRAINT 20 YEAR TERM, FILL SOLUTION, CONSERVATIVE REVENUE CONSTRAINT Private Cost P�bll��a,le PlacementDifferential Total Present Value of Annual Net Debt Service $13,155,910 $13,650,474 ($494,564) 20 YEAR TERM, UNIFORM SOLUTION, $7,2M NET PROCEEDS Public Sale Private .Cost Placement Differential Total Present Value of Annual Net Debt Service $8,527,156 $8,346,896 $180,260 20 YEAR TERM, UNIFORM SOLUTION, $6x2M NET PROCEEDS Public Sale Private Cost Placement Differential Total Present Value of Annual Net Debt Service $7,363,325 $7,203,993 $159,332 20 YEAR TERM, UNIFORM SOLUTION, $11.2M NET PROCEEDS Public Sale Private Cost Placement Differential Total Present Value of Annual Net Debt Service $13,112,441 $12,941,990 $170,4b1 30 YEAR TERM, UNIFORM SOLUTION, $11.2M NET PROCEEDS Public Sale Private Cost Placement Differential Total Present Value of Annual Net Debt Service $15,082,992 N/A N/A �- FIELDN AN WLAPP CITY OF DIAMOND BAR BUILDING ACQUISITION ANALYSIS FOREGONE INVESTMENT EARNINGS ON $5 MILLION GENERAL FUND RESERVES CONTRIBUTION - - - -- •i4•',hS,,.tr,,.•^.r. 'vi ,'�•. � ,::e"};:'•4;3:"z';,ti : '��;('^,k ,•, -` iC;;rr,,,,r;;;•;,�iB,E. "„�f�"' one ;F'die ,Fdregonec"� .., ' ,.y^nF rte., 4r jy t^,6y4x',, iC r.3:�r i� ,. k ,.5.. lri. ogs' '•iY3 BCglnriing^Ekash Ca'shFv., ®�+,Iflvestr�eq�,Eartt4angs"�Irives7nf:ht�fTrnirlgs sC,�-,; ;;,w,ll„ �,y �,;, i, w�!iteres�ES-�riyrng;���,A+,,',S�nding ,. � '� i• 'F nJ �AI"mitral .�$ a�Ji�rE aYtB N*'F i (; o )•w,`+., Ileal )•'� Earnings $2,390,514 FY2010-2011 $5,D00,000 60,1300 $5,060,000 60,000 60,000 FY2011-2012 $5,060,000 60,720 $5,120,720 60,720 60,000 FY2o12-2013 $5,120,720 61,449 $5,182,169 61,449 60,000 FY2013-2014 $5,182,169 103,643 $5,285,812 103,643 97,665 FY2014-2015 $5,285,812 105,716 $5,391,528 105,716 97,665 FY2015-2016 $5,391,528 134,788 $5,526,316 134,788 119,133 FY2016-2017 $5,526,316 138,158 $5,664,474 138,158 119,133 FY2017-2018 $5,664,474 141,612 $5,806,086 141,612 119,133 FY2019-2019 $5,806,086 145,152 $5,951,238 145,152 119,133 FY2019-2020 $5,951,238 148,781 $6,100,019 148,781 119,133 FY2020-2021 $6,100,019 183,001 $6,283,020 183,001 136,170 FY2021-2022 $6,283,020 188,491 $6,471,511 188,491 136,170 FY2022-2023 $6,471,511 194,145 $6,665,656 194,145 136,170 FY2023-2024 $6,665,656 199,970 $6,865,626 199,970 136,170 FY2024-2025 $6,865,626 205,969 $7,071,594 205,969 136,170 FY2025-2026 $7,071,594 247,506 $7,319,100 247,506 147,734 FY2026-2027 $7,319,100 256,169 $7,575,269 256,169 147,734 FY2027-2028 $7,575,269 265,134 $7,840,403 265,134 147,734 FY2028-2029 $7,840,403 274,414 $8,114,817 274,414 147,734 FY2029-2030 $8,114,817 284,019 $8,398,836 284,019 147,734 TOTAL $124,295,359 $3,398,836 $127,694,194 $3,398,836 $2,390,514 $9,090,322 318,161 $9,408,484 318,161 177,281 FY2028-2029 ;Nominal) j $3,398,836 Present Value of Total Foregone Investment Earnings $2,390,514 FOREGONE INVESTMENT EARNINGS ON $6 MILLION GENERAL FUND RESERVES CONTRIBUTION r' Foregone, Foregone Beginning Cash Interest Earnings Ending Cash," Investment Earnings Investment Earnings Real) -------- FY2010-2011 $6,000,000 72,000 $6,072,000 72,000 72,000 FY2011-2012 $6,072,000 72,864 $6,144,864 72,864 72,000 FY2012-2013 $6,144,864 73,738 $6,218,602 73,738 72,000 FYZ013-2014 $6,218,602 124,372 $6,342,974 124,372 117,199 FYZ014-2015 $6,342,974 126,859 $6,469,834 126,859 117,199 FY201S-2016 $6,469,834 161,746 $6,631,580 161,746 142,960 FY2016-2017 $6,631,SR0 165,789 $6,797,369 165,789 142,960 FY2017-2018 $6,797,369 169,934 $6,967,303 169,934 142,960 FY2018-2019 $6,967,303 174,183 $7,141,486 174,183 142,960 FY2019-2020 57,141,496 178,537 $7,320,023 178,537 142,960 FY2020-2021 $7,320,023 219,601 $7,539,624 219,601 163,404 FY2021.2G22 $7,539,624 226,189 $7,765,813 226,189 163,404 FY2022-2023 $7,765,813 232,974 $7,998,787 232,974 163,404 FY2023.2024 $7,998,787 239,964 $8,238,751 239,964 163,404 FY2024-2025 $8,238,751 247,163 $8,485,913 247,163 163,404 FY2025-2026 $8,485,913 297,007 $8,782,920 297,007 177,281 FY2026-2027 $8,782,920 307,402 $9,090,322 307,402 177,281 FY2027-2028 $9,090,322 318,161 $9,408,484 318,161 177,281 FY2028-2029 $9,408,484 329,297 $9,737,781 329,297 177,281 FY2029-2030 $9,737,781 340,822 $10,078,603 340,822 177,281 TOTAL $149,154,430 $4,078,603 $153,233,033 $4,078,603 $2,868,617 $5M GENERAL FUND CONTRIBUTION iTo[alForegone Investment Earnings ($ `Nominal) $4,078,603' $2,868,617 FIFLDIMANT ROLAPP Dia"mond Bar CITY OF DIAMOND BAR BUILDING ACQUISITION ANALYSIS FOREGONE INVESTMENT EARNINGS ON $3.4 MILLION GENERAL FUND RESERVES CONTRIBUTION 1, FM 2.m a. -,A * I., :I- -•-�s 4, !..x k 7 FY2010-2011 ,3,L42,1:19, L1,3: 1 $3,41P,376 Foregone 41,211 FY2011-201Z $3,483,876 41,807 $3,525,682 41,807 41,311 FY2012-2013 $3,525,682 42,308 $3,567,990 42,309 41,311 FY2013-2014 $3,567,990 71,360 $3,639,350 71,360 67,744 FY2014-2015 $3,639,350 72,787 $3,712,137 72,787 67,244 FY2015-2016 $3,712,137 92,803 $3,904,941 92,803 82,025 FY2016-2017 $3,904,941 95,124 $3,900,064 95,124 82,025 FY2017-2018 $3,900,064 97,502 $3,997,566 97,502 82,025 FY2018-2019 $3,997,566 99,939 $4,097,505 99,939 82,025 FYZ019-2020 $4,097,505 102,438 $4,199,943 102,438 82,025 FY2020-2021 $4,199,943 125,998 $4,325,941 125,998 93,755 FY?021.20ZZ $4,325,941 129,778 $4,455,719 129,778 93,755 FY2022-20731 $4,455,719 133,672 $4,589,391 133,672 93,755 FY2023-2024 $4,589,391 137,682 $4,727,072 137,682 93,755 FY2024-2025 $4,727,072 141,812 $4,868,895 141,812 93,755 FYZ025-2026 $4,868,885 170,411 $5,039,296 170,411 101,717 FYZ026-2027 $5,039,296 175,375 $5,215,671 176,375 101,717 FYZ027.2028 $5,715,671 182,549 $5,399,219 182,548 101,717 FY2028-2029 $5,398,219 188,938 $5,597,157 188,938 101,717 FY2029-2030 $5,587,157 195,550 $5,782,7D8 195,550 101,717 TOTAL $95,579,970 $2,340,143 $87,919,113 $7,340,143 FY2028-2029 "Z7 ;Nominal) $2,340,143a Present Value of Total I Foregone Investment Earnings $1,645,9001 FOREGONE INVESTMENT EARNINGS ON $12.2 MILLION GENERAL FUND RESERVES CONTRIBUTION 7 7 Fo , r.gon& Foregone Beginni C Cash InterestEarnl.ngs Ending Cash lnyestmant Earnings Inestment Earhings , I$ Nominal) ($ Real) FY2011-2012 $12,346,400 148,157 $12,494,557 148,157 146,400 FY2012-2013 $12,494,557 149,935 $12,644,491 149,935 146,400 FY2013-2014 $12,644,491 252,890 $12,897,381 252,890 238,304 FY2014-2015 $12,897,391 297,948 $13,155,329 257,949 238,304 FY2015-2016 $13,155,329 378,983 $13,484,212 328,983 290,685 FY2016-2017 $13,484,212 397,105 $13,821,317 337,105 290,685 FY2017-2018 $13,821,317 345,533 $14,166,850 345,533 290,685 FY2018-2019 $14,156,850 354,171 $14,521,022 354,171 290,685 FY2019-2020 $14,521,022 363,026 $14,984,047 363,026 290,685 F'Y2020-2021 $14,884,047 446,521 $15,330,569 446,521 332,254 FY2021.2022 $15,330,569 459,917 $15,790,496 459,917 332,254 FY2022-202A $15,790,486 473,715 $16,264,200 473,715 332,254 FY2023.2024 $16,264,20D 497,926 $16,752,126 487,926 332,254 FY2024-2025 $16,752,126 502,564 $17,254,690 502,564 332,254 FY2025-2026 $17,254,690 603,914 $17,958,604 603,914 360,471 FY202S-2027 $17,858,604 625,051 $18,483,655 625,051 360,471 FY2027-2028 $18,483,655 546,928 $19,130,583 646,929 360,471 FY2028-2029 $19,130,583 669,570 $19,800,154 669,570 360,471 FY2029-2030 $19,800,154 693,005 $20,493,159 693,005 350,471 TOTAL $303,230,675 $8,293,159 $311,573,834 $8,293,159 $5,832,955 $12.2M GENERAL FUND CONTRIBUTION 'Investment Earnings ($: Nominal) , $8,293,159�, Prt-sent Value of Total roregone Investment �111, Fanning,� FIELDMA-N ROLAPP !�;1� - �D D BA1110 pm -74 VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL TO: CIT6L4 LERK ti �� �-_ FROM: ]� DATE: ADDRESS:PHONE: 3 ORGANIZATION: �-1Z AGENDA#/SUBJECT: Co 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. Z7,- 4 _. Signature a This document is a public record subject to disclosure under the Public Records Act. mlmm— VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL TO: FROM: ADDRESS: ORGANIZATION: AGENDA#/SUBJECT: CITY CLERK %"ylti DATE: J 3� PHONE: a- 1, , - - �", 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. n6fure This document is a public record subject to disclosure under the Public Records Act. D i551 10 TDB ) . 0 • , ��, 11 11111 111111111 11111111 111 1111 11 11111 11111 111 11111 TO: CITYCLERK FROM: 3,fir jJ AI'LT i ✓I7 DATE: ky' zc) ADDRESS: Ic y �,� Ul' PHONE: 3 01 -3 16 --1 ORGANIZATION: AGENDA#/SUBJECT: 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. n ignature This document is a public record subject to disclosure tMder the Public Records Act.