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
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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.
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• 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
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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
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� 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
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