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HomeMy WebLinkAbout06/30/2006 - Adjourned Regular Meetingrw*Av Council Agenda Friday June 30, 2006 10:00 a.m. —Adjourned Regular Meeting The Government Center South Coast Air Quality Management District/ Main Auditorium 21865 Copley Drive Diamond Bar, CA 91765 Mayor Carol Herrera Mayor Pro Tem Bob Zirbes Council Member Wen Chang Council Member Jack Tanaka Council Member Steve Tye City Manager Linda C. Lowry City Attorney Michael Jenkins City Clerk Tommye Cribbins Copies of staff reports or other written documentation relating to agenda items are on file in the Office of the City Clerk, and are available for public inspection. If you have questions regarding an agenda item, please contact the City Clerk at (909) 839-7419 during regular business hours. In an effort to comply with the requirements of Title II of the Americans with Disabilities Act of 1994, the City of Diamond Bar requires that any person in need of any type of special equipment, assistance or accommodation(s) in order to communicate at a City public meeting, must inform the City Clerk a minimum of 72 hours prior to the scheduled meeting. Please refrain from smoking, eating or drinking in the Council Chambers, The City of Diamond Bar uses recycled paper and encourages you to do the same. DIAMOND BAR CITY COUNCIL MEETING RULES Welcome to the meeting of the Diamond Bar City Council. Meetings of the Diamond Bar City Council are open to the public and are cablecast live on Channel 3. You are invited to attend and participate. PUBLIC INPUT Members of the public may address the Council on any item of business on the agenda during the time the item is taken up by the Council. In addition, members of the public may, during the Public Comment period, address the Council on any consent calendar item or any matter not on the agenda and within the Council's subject matter jurisdiction. Persons wishing to speak should submit a speaker slip to the City Clerk. Any material to be submitted to the City Council at the meeting should be submitted through the City Clerk. Speakers are limited to five minutes per agenda item, unless the Mayor determines otherwise. The Mayor may adjust this time limit depending on the number of people wishing to speak, the complexity of the matter, the length of the agenda, the hour and any other relevant consideration. Speakers may address the Council only once on an agenda item, except during public hearings, when the applicant/appellant may be afforded a rebuttal. Public comments must be directed to the City Council. Behavior that disrupts the orderly conduct of the meeting may result in the speaker being removed from the Council chambers. INFORMATION RELATING TO AGENDAS AND ACTIONS OF THE COUNCIL Agendas for regular City Council meetings are available 72 hours prior to the meeting and are posted in the City's regular posting locations, on DBTV Channel 3, and on the City's website at www.ci.diamond-bar.ca.us. A full agenda packet is available for review during the meeting, in the foyer just outside the Council chambers. The City Council may take, action on any item listed on the agenda. ACCOMMODATIONS FOR THE DISABLED A cordless microphone is available for those persons with mobility impairments who cannot access the podium in order to make a public comment. Sign language interpretation is available by providing the City Clerk three business days' notice in advance of a meeting. Please telephone (909) 839-7000 between 7:30 a.m. and 5:30 p.m. Monday through Thursday and 7:30 a.m. to 4:30 p.m. on Fridays. HELPFUL PHONE NUMBERS Copies of agendas, rules of the Council, Cassette/Video tapes of meetings: (909) 839-7010 Computer access to agendas: www.ci.diamond-bar.ca.us General information: (909) 839-7000 CITY OF DIAMOND BAR CITY COUNCIL AGENDA Adjourned Regular Meeting June 30, 2006 Next Resolution No. 2006-61 Next Ordinance No. 05(2006) Closed Session Announcement 1. CALL TO ORDER: 10:00 a.m. 2. PLEDGE OF ALLEGIANCE: Mayor ROLL CALL: Council Members Chang, Tanaka, Tye, Mayor Pro Tem Zirbes, Mayor Herrera 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 addressinq 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. CONSENT CALENDAR: 5.1 Approve and Amendment to the Agreement for Traffic Signal Maintenance Services with Republic Electric to Extend the Term by 24 Months and Include a $2.00 CPI Hourly Rate Adjustment Anticipating a Monthly Cost of $95,000. Recommended Action: Approve. Requested by: Public Works Department JUNE 30, 2006 PAGE 2 6. COUNCIL CONSIDERATION: 6.1 (a) Adopt Resolution No. 2006 -XX: Declaring its Intention to Establish Community Facilities District No. 2006-1 of the City of Diamond Bar (Diamond Bar Library), and to Submit to the Voters the Authorization of the Levy of Special Taxes to Pay the Costs of Acquiring, Constructing and Maintaining a Municipal Library and to Finance Expenses of the District and to Pay Debt Service on Bonded Indebtedness. Recommended Action: Adopt. (b) Adopt Resolution No. 2006 -XX: Resolution of Intention to Incur Bonded Indebtedness within Community Facilities District No. 2006-1 of the City of Diamond Bar (Diamond Bar Library) Subject to a Vote of the People. Recommended Action: Adopt. Requested by: City Manager 6.2 Approval of Lorbeer Field Improvement ( Construction Value of $750,000) and Use Agreement which Includes Maintenance, Security, and Other Costs. Recommended Action: Approve. Requested by: Community Services Department 7. ADJOURNMENT: Carol Herrera Mayor Bob Zirbes Mayor Pro Tem Wen P. Chang Council Member Jack Tanaka Council Member Steve Tye Council Member Recycled paper 21825 Copley Drive • Diamond Bar, CA 91765-4178 (909) 839-7000 • Fax (909) 861-3117 www.CityofDiamondBar.com CITY OF DIAMOND BAR CITY COUNCIL AGENDA SPECIAL CLOSED SESSION 9:00 a.m. CLOSED SESSION: 9:00 a.m., Conference Room B, Diamond Bar City Hall Public Comments on Closed Session Agenda ► Public Employment -- City Manager Government Code Section 54957 ADJOURNMENT: CITY COUNCIL Agenda # 5_1 Meeting Date: June 30, 2006 AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA; Linda C. Lowry, City Manage TITLE: APPROVE EXTENSION OF AGREEMENT FOR TWO YEARS FOR TRAFFIC SIGNAL MAINTENANCE SERVICES WITH REPUBLIC ELECTRIC. RECOMMENDATION: Approve. FISCAL IMPACT: Republic Electric (Republic) has requested an increase for the routine monthly maintenance cost from the current $50/month per intersection to $52/month per intersection. The increased costs for gasoline, insurance, and vehicles have prompted the request. The City currently has 62 intersections and 7 underpass/bridge lights main6ined by Republic. The costs for basic extraordinary maintenance and equipments will be charged on a time and material basis. All extraordinary work must first be authorized by the City prior to installation. The FY 2005-06 projected cost is $170,000. For FY 2006- 07, $180,000 has been budgeted to adequately handle our maintenance needs and costs. BACKGROUNDIDISCUSSION: In June 2000, Council awarded the traffic signal maintenance contract to Signal Maintenance, Inc. (SMI) for a five-year period beginning July 1, 2000 through June 30, 2005 with a provision for five (5) additional annual renewals. On October 1, 2004, Republic acquired SMI and the acquisition was approved by Council on October 19, 2004. Subsequently, on June 7, 2005, Council approved the extension of one year to the agreement with Republic for FY 2005-06. Republic is committed to providing traffic signal maintenance services that will meet our needs through experienced and qualified personnel. As an example, Republic uses highly trained technicians to perform the signal maintenance. Additionally, all technicians report to the City in a bucket -equipped truck as well as an extensive materials inventory. Less time is spent going back to the yard to pick up the necessary supplies for maintenance needs. Republic also has personnel who have the ability to create plans and specifications for projects that may be required for the traffic signals as general aging and/or collisions occur in the field. Staff monitors the extraordinary maintenance charges when presented and determines what services are necessary to maintain the traffic signals in optimum condition. Since October 1, 2004 and the acquisition of SMI, Republic's performance has been satisfactory and in accordance with the City's specifications. Staff recommends the Council approve the extension of two years to the agreement with Republic for Traffic Signal Maintenance Services for FY 2006-07 and FY 2007-08. David G. Liu, Director of Public Works Attachment: (A) Agreement Amendment with Republic's letter of Request (B) List of Maintained Signalized Intersections 2 AMENDMENT NO. 2 TO THE TRAFFIC SIGNAL MAINTENANCE AGREEMENT This Amendment No. 2 to the Agreement is made and entered into this 30th day of June, 2006, between the CITY OF DIAMOND BAR, a Municipal Corporation (hereinafter referred to as "CITY") and REPUBLIC ELECTRIC (hereinafter referred to as "CONTRACTOR"). A. RECITALS: (i) The CITY has heretofore entered into an Agreement with CONTRACTOR to provide Traffic Signal Maintenance Services, which the Agreement was dated June 6, 2000. (ii) The CONTRACTOR submitted a proposal, a full, true and correct copy of which is attached hereto as Exhibit "A" , dated February 17, 2000, to provide traffic signal maintenance services. (iii) The CONTRACTOR submitted a proposal for extension of the contract, a full, true and correct copy of which is attached hereto as Exhibit "B", dated June 20, 2006, to provide traffic signal maintenance services. NOW, THEREFORE, it is agreed by and between CITY and CONTRACTOR: Section 1: Scope of Services of the Agreement is hereby amended to read as follows: Scope of Services. The nature and scope of the specific services to be performed by CONTRACTOR.are as described in Exhibits "A" and "B", dated February 17, 2000 and June 20, 2006, respectively. CONTRACTOR shall begin its services under this Agreement on July 1, 2006. Section 5: Compensation of the Agreement is hereby amended to read as follows: Compensation. CITY agrees to compensate CONTRACTOR for each service which CONTRACTOR performs to the satisfaction of CITY in compliance with the schedule set forth in the June 6, 2000 Agreement and Exhibit "B", dated June 20, 2006. Payment will be made only after submission of proper invoices in the form specified by City. Section 9: Termination of Agreement is hereby amended to read as follows: Termination of Agreement. This Amendment No. 2 will terminate June 30, 2008 unless otherwise extended in advance and in writing by the City Manager. Each party to this Amendment No. 2 acknowledges that no representation by any party which is not embodied herein nor any other agreement, statement, or promise -not contained in this Amendment No. 2 shall be valid and binding. Any modification of this Amendment No. 2 shall be effective only if it is in writing signed by the parties. IN WITNESS WHEREOF, the parties hereto have executed this Agreement No. 2 as of the day and year first set forth above: APPROVED AS TO FORM: CONTRACTOR: REPUBLIC ELECTRIC 91 City Attorney Ken Harris CITY OF DIAMOND BAR Carol Herrera, Mayor ATTEST: CITY OF DIAMOND BAR Tommye Cribbins, City Clerk Date 2 0512212006 15:41 17146802828 REPUBLIC ELECTRIC PAGE 02/02 Repubfc Electric June 20,2006 City of Diamond Bar 21825 E Copley Dr. t)iamond liar, Ca. 91765 Mtn- Sharon CxOMCz Subject; Mainte=Dce Contract extens'On Dear Ms. Chan Republie Electric would .like to request an extension on our agreement with *0 city for the maizttenanc0 of their traffic signals fot an additional two years. p~epublic Electric will increase the cast using the CP1 for the greater LA area. for all consumer products on just the routiDe, monthlY rate Ey increasing the monthly rate on your routine inspections, our proposed rate would 90 from $50.00 to $52.00 per month per intersection. ! hope this will be agreeable with you We acre all looking forward to a long working relationship with the city of Diamond Bar and you and would meet with you and your staff to 90 over any issues regarding this request. if there is anything I can. assist you with, please feel free to call: Sincerely Ken Harris republic Electric 949-4538940 (714) 630-2100 Fax (/34) 630-2828 1266 N. La 1.01M Cirete • Anali0m, CA 92806 Lt T�ALI.AS . 5 • S.&(R,%.MP.NTO " SAV DTEGQ + SAN FRANCISCO r'iCSSTtIV * 7AVa38[,T?R ,4�4�5r.�r ` DB Maintained by Republic (714) 535-0550 CITY OF DIAMOND BAR SIGNALIZED INTERSECTIONS 1. BREA CANYON ROAD & DIAMOND BAR BLVD. 2. BREA CANYON ROAD & DIAMOND CREST LANE 3. BREA CANYON ROAD & FALLOWFIELD DR. (DB/COUNTY - County maintain (626) 458-4357) 4. BREA CANYON ROAD & GLENBROOK DRIVE 5. BREA CANYON ROAD & GOLDEN SPRINGS DRIVE 6. BREA CANYON ROAD & LYCOMING STREET 7. BREA CANYON ROAD & PATHFINDER (AT FERNHOLLOW) E. SIDE OF 57 FWY 8. BREA CANYON ROAD & POMONA FWY W/B (DB 66%/STATE) DB Maintain 9. BREA CANYON ROAD & SILVER BULLET DRIVE 10. BREA CANYON ROAD & WASHINGTON STREET 11. BREA CANYON CUT-OFF & OAK CREST DR. (DB/COUNTY -- County maintain (626) 458-4357) 12, BRIDGEGATE DRIVE AT LOT 16 13. CHINO HILLS PKWY. & CHINO AVE. 14. CHINO HILLS PKWY. & SCENIC RIDGE DRIVE (DB/POMONA - Pomona maintain (909) 620-228'1) 15. DIAMOND BAR BLVD/CLEAR CREEK CANYON ROAD 16. DIAMOND BAR BLVD & COLD SPRING LANE 17. DIAMOND BAR BLVD & FOUNTAIN SPRINGS ROAD 18. DIAMOND BAR BLVD & GENTLE SPRINGS LANE/PALOMINO DRIVE 19. DIAMOND BAR BLVD & GOLD RUSH DRIVE 20. DIAMOND BAR BLVD & GOLDEN SPRINGS DRIVE 21. DIAMOND BAR BLVD 1 NORTH OF GOLDEN SPRINGS DR. AT K -MART 22. DIAMOND BAR BLVD & GRAND AVENUE 23. DIAMOND BAR BLVD & HIGHLAND VALLEY ROAD 24. DIAMOND BAR BLVD & KIOWA CREST DRIVE 25. DIAMOND BAR BLVD & MONTEFINO AVENUE 26. DIAMOND BAR BLVD & MOUNTAIN LAUREL WAY 27. DIAMOND BAR BLVD & PATHFINDER ROAD 28. DIAMOND BAR BLVD & QUAIL SUMMIT DRIVE 29. DIAMOND BAR BLVD 1 SILVER HAWK DRIVE 30. DIAMOND BAR BLVD & SHADOW CANYON DRIVE 31. DIAMOND BAR BLVD & SUGAR PINE DRIVE 32. DIAMOND BAR BLVD & SUNSET CROSSING ROAD 33. DIAMOND BAR BLVD & TEMPLE / MISSION (DBIPOMONA - DB maintain) 34. DIAMOND BAR BLVD & TIN DR / CRESTVIEW DRIVE 35. DIAMOND BAR BLVD NIB 57 FWY ON-RAMP (DBISTATE -- DB maintain) 36. GATEWAY CENTER DR / VALLEY VISTA DRIVE 37. GOLDEN SPRINGS DRIVE & ADEL 38. GOLDEN SPRINGS DRIVE & BALLENA 39. GOLDEN SPRINGS DRIVE & CALBOURNE DRIVE 40. GOLDEN SPRINGS DRIVE & CARPIO DRIVE 41. GOLDEN SPRINGS DRIVE & COPLEY DRIVE 42. GOLDEN SPRINGS DRIVE & GATEWAY CENTER DRIVE DB Maintained by Republic (714) 535-0550 43. GOLDEN SPRINGS DRIVE & GOLDEN PRADOS DRIVE 44. GOLDEN SPRINGS DRIVE & GRAND AVENUE 45. GOLDEN SPRINGS DRIVE & HIGH KNOB 46, GOLDEN SPRINGS DRIVE & LEMON AVENUE 47. GOLDEN SPRINGS DRIVE & POMONA FWY EIB (DB 50%/STATE) DB Maintained 48. GOLDEN SPRINGS DRIVE & PROSPECTORS ROAD 49. GOLDEN SPRINGS DRIVE & RAPIDVIEW DRIVE 50. GOLDEN SPRINGS DRIVE & SUNSET CROSSING ROAD 51. GOLDEN SPRINGS DRIVE & SYLVAN GLEN 52. GOLDEN SPRINGS DRIVE 1 TEMPLE AVENUE (DB/POMONA) Pomona maintain (909) 620-2281) 53. GRAND AVENUE & LONGVIEW DRIVE 54. GRAND AVENUE & MONTEFINO AVENUE 55. GRAND AVENUE & ROLLING KNOLL DRIVE 56. GRAND AVENUE & SHOTGUN LANE, THE COUNTRY/DIAMOND BAR CENTER 57. GRAND AVENUE & SUMMITRIDGE DRIVE 58. 800 S.'GRAND AVENUE (SIE OF GOLDEN SPRINGS DRIVE @ DIAMOND BAR VILLAS DRIVEWAY) 59. LEMON AVENUE & LYCOMING STREET 60. PATHFINDER ROAD & BRAHMA BOULEVARD 61. PATHFINDER ROAD & BREA CANYON ROAD WEST OF 57 FWY 62. PATHFINDER ROAD & EVERGREEN SPRINGS DRIVE 63. 57 FWY NIB DIAMOND BAR BLVD (DB/STATE) 64. 57 FWY SIB/ PATHFINDER ROAD (DB/STATE) State Maintain 213-897-0383 65. 57 FWY N/B PATHFINDER ROAD (DB/STATE) State Maintain 213-897-0383 66. 60 FWY EIB GRAND AVENUE (DB/STATE) State Maintain 213-897-0383 67. 60 FWY W/B GRAND AVENUE / OLD BREA CANYON ROAD (DBISTATE) State Maintain 213-897-0383 68. 60 FWY E/B DIAMOND BAR BLVD (DB/STATE) State -Maintain 213-897-0383 fig. 60 FWY W/B DIAMOND BAR BLVD (DB/STATE) State Maintain 213-897-0383 Underpass Bridge Light Maintenance 1. Cold Spring Ln. (between Brea Canyon and Fallow Field) under 57 fwy. 2. Diamond Bar BI. (between Brea Canyon and Fallow Field) under 57 fwy. 3. Brea Canyon Rd. (between Golden Springs and Lycoming) under 60 fwy. 4. Diamond Bar BI. (between Palomino and Sunset Crossing) under 60 fwy. 5. Sunset Crossing Rd. (between Diamond Bar BI. and Old Trail) under 57•fwy. 6. Golden Springs Dr. (between Carpio and Sylvan Glen) under 60 fwy. Perform monthly night survey and inspection of bridge soffit lights and issue a written report of outages. All repairs are done on a time and materials basis. 1112005 - SG Warranty: Refers to recently constructed signals under warranty with contractor. Signals should be part of the monthly maintenance check. If repairs are necessary, City should be contacted to determine if contractor should be responsible during warranty time frame. CITY COUNCIL Agenda # 61(a and b) Meeting Date: June 30, 2006 AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager� TITLE: RESOLUTIONS OF THE CITY COU IL OF THE CITY OF DIAMOND BAR DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2006-1 (DIAMOND BAR LIBRARY) AND TO SUBMIT TO THE VOTERS THE AUTHORIZATION OF THE LEVY OF SPECIAL TAXES TO PAY FOR CONSTRUCTION AND MAINTENANCE OF A NEW MUNICIPAL LIBRARY, SETTING THE PUBLIC HEARING DATE FOR AUGUST 1, 2006, AND STATING ITS INTENT TO INCUR BONDED INDEBTEDNESS WITHIN COMMUNITY FACILITIES DISTRICT NO. 2006-1 RECOMMENDATION: Staff recommends that the City Council approve the above titled resolutions declaring the City Council's intent to establish a community facilities district and to submit to the voters the authorization of the levy of special taxes for the purpose of constructing and maintaining a new Diamond Bar Library, incurring bonded indebtedness, and setting August 1, 2006 as the date of the public hearing to consider formation of the District. FISCAL IMPACT: The ultimate election cost payable to the County will total approximately $60,000. The cost of preparation of the goals and policies, resolutions of intent and formulation, rate methods, etc. by outside qualified consultants may total $75,000 which can be reimbursed as a cost of issuance if the measure is passed. If the measure fails, approximately $20,000 must be paid to the consultants. Additional financial implications associated with the issuance of the bonds are addressed below. BACKGROUND: On May 15, 2006, the City Council directed staff to recommence the process to place a Library Special Tax measure on the November 2006 ballot. Staff assembled consultants from Munifinancial, Staddling Yocca Carlson & Rauth, and Stone and Youngberg to advise and assist the City in completing the required processes within the time remaining. A Special City Council meeting was held June 1, 2006, to obtain information from the Council in order to begin the preparation of documents. The following premises are being used to prepare the Library CFD: • The new Library has an estimated total project cost of $15,000,000 of which $11,000,000 shall be financed by the CFD and $4,000,000 shall be paid from the City's General Fund. • The Library CFD assessment formula will include rate distinction between land uses. Housing units will be part of the rate formula. • The annual operating cost increase will be funded through the CFD with a base amount of $500,000 and include an annual CPI adjustment • if the construction cost is less than the estimated $15,000,000 the savings will be applied to the bond principal or to reduce the annual special taxes paid by residents. • If the City implements a rebate for low income tax payers, the rebate will need to be administered by the City and will need to be appropriated from the General Fund. On June 20, 2006 the City Council approved Resolution 2006-60 adopting local goals and policies associated with the formation of community facilities districts. This required step now allows the City to proceed with the formation of a community facilities district. DISCUSSION: In order to complete the formation of a CFD and the issuance of bonds, the City Council must adopt additional resolutions and ultimately place the measure on the ballot for a vote of the people. The measure must pass with 66 213% to be enacted. The attached resolutions, described in more detail below, are the next steps in the CFD formation process. RESOLUTION OF INTENTION TO FORM COMMUNITY FACILITIES DISTRICT The attached resolution of intent to establish the CFD identifies the rate and method of apportionment for the special taxes and specifies the following: • The total issuance for construction of the facility will be for not -to -exceed $13,100,000 with net proceeds of $11 million. 2 The special tax for the construction of the facility (for approximately 30 years) will be as follows: Single Family Residential $61.20 Multi -family residential $44.50 Commercial Property $55.30 Industrial Property $41.20 • The special tax for the operation and maintenance in year 1 (increase by CPI every year thereafter) is as follows: Single Family Residential $27.80 Multi -family residential $20.30 Commercial Property $25.20 Industrial Property $18.80 • The combined construction and maintenance special tax are as follows: Single Family Residential $89.00 Multifamily residential $64.80 Commercial Property $80.50 Industrial Property $60.00 • Sets the August 1, 2006 City Council meeting as the date for the public hearing to consider forming the community facility district. RESOLUTION OF INTENTION TO INCUR BONDED INDEBTEDNESS The resolution of intent to incur bonded indebtedness informs the community that the City Council is considering authorizing the issuance of bonds in the amount not -to - exceed $13,100,000 with net proceeds of $11 million for the purpose of constructing a new library. The aforementioned resolution of intent to create the CFD includes the rate and method of apportionment establishing the assessments that would be used to pay the principle and interest of the bonds. SUMMARY If these resolutions are approved by the City Council, staff will prepare the necessary CFD creation documents for the public hearing on August 1, 2006 including the resolutions calling for a special election to be held in conjunction with the County election on November -7,2006. MN' .' Dave Doylo;-A'64f4ft City Manager Attachments: 1. Resolution No. 2006 -XX —Resolution of Intent to form community facilities district 2. Resolution No. 2006 -XX -- Resolution of Intent to incur bonded indebtedness 3 RESOLUTION NO. A RESOLUTION OF CITY COUNCIL OF THE CITY OF DIAMOND BAR DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2006-1 OF THE CITY OF DIAMOND BAR (DIAMOND BAR LIBRARY), AND TO SUBMIT TO THE VOTERS THE AUTHORIZATION OF THE LEVY OF SPECIAL TAXES TO PAY THE COSTS OF ACQUIRING, CONSTRUCTING AND MAINTAINING A MUNICIPAL LIBRARY AND TO FINANCE EXPENSES OF THE DISTRICT AND TO PAY DEBT SERVICE ON BONDED INDEBTEDNESS WHEREAS, the City Council of the City (the "City Council") desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of California to establish a community facilities district consisting of all of the territory located within the boundaries of the City of Diamond Bar (the "City') described in Attachment "A" hereto and incorporated herein by this reference, which the City Council hereby determines shall be Known as "Community Facilities District No. 2006-1 of the City of Diamond Bar (Diamond Bar Library)" (the "Community Facilities District No. 2006-1" or the "District") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the "Act"), to (1) finance the purchase, construction, modification, expansion, improvement or rehabilitation of certain public facilities, consisting of a municipal library, as described in Attachment "B" hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the "Facilities"), which Facilities have a useful life of five years or longer, (2) finance library services described in Attachment "D" hereto and incorporated herein by this reference (the "Services"), (3) finance the incidental expenses to be incurred in connection with forming and administering the District and financing the Facilities (the "Facilities Incidental Expenses"), and (4) finance the incidental expenses to be incurred in connection with forming and administering the District and financing the Services (the "Services Incidental Expenses" and, together with the Facilities Incidental Expenses, the "Incidental Expenses"); and WHEREAS, the City Council further intends to approve an estimate of the costs of the Facilities, the Services and the Incidental Expenses for Community Facilities District No. 2006-1; and WHEREAS, it is the intention of the City Council to consider financing the Facilities and Facilities Incidental Expenses through the formation of Community Facilities District No. 2006-1 and the sale of bonded indebtedness in an amount not to exceed $13,100,000 and the levy of a special tax within Community Facilities District No. 20061 to pay for the Facilities and the Facilities Incidental Expenses and to pay 4 debt service on the bonded indebtedness incurred by Community Facilities District No. 2006-1, provided that the bond sale and special tax levy are approved at elections to be held within the boundaries of Community Facilities District No. 2006-1; and WHEREAS, it is also the intention of the City Council to consider financing the Services and the Services Incidental Expenses through the formation of Community Facilities District No. 2006-1 and the levy of a special tax to pay for such Services and Services Incidental Expenses; 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 true and correct. SECTION 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the boundaries of the community facilities district shall be the territorial boundaries of the City of Diamond Bar as further described in Attachment "A" hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2006-1 which is on file with the City Cleric. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the County Recorder of the County of Los Angeles within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California. SECTION 3. The name of the proposed community facilities district shall be "Community Facilities District No. 2006-1 of the City of Diamond Bar (Diamond Bar Library)." SECTION 4. The Facilities proposed to be provided within Community Facilities District No. 2006-1 and to be financed by Community Facilities District No. 2006-1 are public facilities as defined in the Act, which the City is authorized by law to construct, acquire, own and operate. The Services proposed to be provided for the benefit of Community Facilities District No. 2006-1 are public services as defined in the Act, and this City Council finds and determines that the Services to be financed are in addition to those provided in the territory of the District at the present time and will enhance services already available within the territory of the District at the present time. The City Council hereby finds and determines that the description of the Facilities and the Services herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities and Services, the costs of forming the District, issuing bonds and levying and collecting a special tax within the District and the cost of administration. All or a portion of the Facilities may be purchased with District funds as completed public facilities pursuant to Section 63314.9 of the Act and/or constructed 5 with District funds pursuant to Section 53316.2 of the Act. Any portion of the Facilities may be financed through a lease or lease -purchase arrangement if the District hereafter determines that such arrangement is of benefit to the District. SECTION 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a special tax within the District, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for: (i) the Facilities; (ii) the Services; (iii) the Incidental Expenses; and (iv) the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and the Facilities Incidental Expenses, Including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash). The rate and method of apportionment and manner of collection of the special taxes within the District are described in detail in Attachment "C° attached hereto, which Attachment "C" is incorporated herein by this reference. Attachment "C" allows each landowner within the District to estimate the maximum amount that may be levied against each parcel. If special taxes of the District are levied against any parcel used for private residential purposes, (i) the maximum special tax rate shall not be increased over time; provided, however, the special taxes for Services may be increased based on the annual percentage change in the consumer price index to the extent permitted in the rate and method, (ii) the special tax for Facilities shall be levied for a period so long as bonds are outstanding, which shall not exceed 31 years from the date of issuance of the bonds or such series of bonds; provided that the special tax for Facilities may be levied until Fiscal Year 2046-47, as further described in Attachment "C" hereto, in order to collect delinquent special taxes required to pay debt service on bonds, (iii) the special tax for Services may be levied in perpetuity or for such period as the Services are needed, as further described in Attachment "C" "hereto, and (iv) under no circumstances will such special tax be increased with respect to residential property as a consequence of delinquency or default by the owner of any other parcel or parcels within the District by more than ten percent. The special taxes within the proposed District are based on the expected demand that each parcel of real property within the proposed District will place on the Facilities and the Services and on the benefit that each parcel derives from the right to access the Facilities and from the Services. The City Council hereby determines the rate and method of apportionment of the special taxes set forth in Attachment "C° to be reasonable. The special tax within the proposed District is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act, and such special tax is not based upon the value or ownership of real property. In the event that a portion of the property within the proposed District shall become for any reason exempt, wholly or partially, from the levy of the special tax specified on Attachment "C," as the case may be, the City Council shall, on behalf of Community Facilities District No. 2006-1, cause the levy to be increased, subject to the limitation of the maximum special tax for a parcel as set forth in Attachment "C", to the extent necessary upon the remaining property 2 within the proposed District which is not exempt in order to yield the special tax revenues required for the purposes described in this Section 5. The obligation to pay the special tax within the proposed District may not be prepaid. SECTION 6. A public hearing (the "Hearing") on the establishment of the proposed Community Facilities District No. 2006-1, the proposed rate and method of apportionment of the special tax, the proposed issuance of bonds to finance the Facilities and the Facilities Incidental Expenses and the Services and the Services Incidental Expenses shall be held at 7:090 p.m., or as soon thereafter as practicable, on August 1, 2006, at AQMD Government Center Auditorium, 21865 Copley Drive, Diamond Bar, California. Should the City Council determine to form the District, a special election will be held to authorize the issuance of the bonds and the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the elections will be a registered voter election with each registered voter within the proposed District having one vote. Ballots for the special election may be distributed by mail or by personal service. SECTION 7. The City Council does not intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act. SECTION 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2006-1, may appear and be heard. SECTION 9. Each City officer who is or will be responsible for administering the proposed Community Facilities District No. 2006-1, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of (i) the public facilities and services by type which will in his or her opinion be required to meet adequately the needs of. Community Facilities District No. 2006-1 and an estimate of the cost of providing those public facilities and services, including the cost of environmental evaluations of such facilities, and (ii) an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred. SECTION 10. The District may accept advances of funds or work -in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but riot limited to, paying any cost incurred in creating Community Facilities District No. 2006-1. The District may enter into an agreement with the person or entity advancing the funds or work -in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work -in-kind, as determined by the City Council, with or without interest. SECTION 11. The City Clerk is hereby directed to publish a notice (the "Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2006-1. The Notice shall contain the text or a summary of this 7 Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing. SECTION 12. The reasonably expected maximum principal amount of the bonded indebtedness to be incurred by the District is $13,100,000. SECTION 13. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment). SECTION 14. This Resolution shall be effective upon its adoption. PASSED, APPROVED AND ADOPTED this day of 2006 Mayor I, Tommye Cribbins, City Clerk of the City of Diamond Bar, California do hereby certify that the foregoing Resolution 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 , 2006, by the following vote: AYES: COUNCIL_ MEMBERS: NOES: COUNCIL_ MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED:COUNCIL MEMBERS: Tommye Cribbins, City Clerk ATTACHMENT A Proposed Boundaries Community Facilities District No. 2006-1 City of Diamond Bar (Diamond Bar Library), Los Angeles County, California THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, AND IS DESCRIBED AS FOLLOWS: All land located within the territorial limits of the City of Diamond Bar, as set forth in the map entitled "Proposed City of Diamond Bar," as modified by the Local Agency Formation Commission on August 24, 1988, which map is on file with the Local Agency Formation Commission. A-1 ATTACHMENT B Types of Facilities to Be Financed by Community Facilities District No. 2006-1 City of Diamond Bar (Diamond Bar Library), Los Angeles County, California The proposed public facilities and expenses to be financed by the District include the purchase, construction, modification, expansion, improvement or rehabilitation of a municipal library, including all furnishings, equipment and supplies related thereto, and together with all appurtenant work in connection therewith, provided that such facilities have a useful life of five years or longer. Facilities Incidental Expenses: Incidental expenses proposed to be incurred include the following: (a) the cost of planning and designing the proposed public facilities to be financed, including the cost of environmental evaluations of those facilities; (b) any other expenses incidental to the construction, completion and inspection of the authorized work; and (c) the costs associated with the formation of the District, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District. ATTACHMENT C RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2006-1 OF THE CITY OF DIAMOND BAR (DIAMOND BAR LIBRARY) Special Taxes as hereinafter defined shall be levied on and collected for Community Facilities District No. 2006-1 of the City of Diamond Bar (Diamond Bar Library) ("CFD No. 2006-1") each Fiscal Year commencing in Fiscal Year 2007-2008, in an amount determined by the City Council of the City of Diamond Bar through the application of the Special Tax for Developed Property as described below. All of the real property in CFD No. 2006-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Act" means the Mello -Roos Communities Chapter 2.5, Part 1, Division 2 of Title 5 California. Facilities Act of 1982 as amended, being of the Government Code of the State of "Administrative Expenses" means any actual ordinary and necessary expense of the City of Diamond Bar, or designee thereof or both, to carry out the administration of CFD No. 2006-1 related to the determination of the amount of the levy of the Special Tax, the collection of the Special Tax including the expenses of collecting delinquencies, the administration of Bonds, the payment of a proportional share of salaries and benefits of any City employee whose duties are directly related to the administration of CFD No. 2006-1, fees and expenses for counsel, audits, or other amounts needed to pay rebate to the federal government with respect to the Bonds, costs related to complying with continuing disclosure requirements, costs associated with responding to public inquiries regarding CFD No. 2006-1 or the Bonds, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2006-1. "Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an assigned Assessor's parcel number within the boundaries of CFD No. 2006-1. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the annual Special Tax as described in Section C below. i "Base Year" means Fiscal Year ending June 30, 2007. C-1 "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which the Special Tax has been pledged. "Boundary Map" means the map of the boundaries for CFD No. 2006-1, as approved by the City Council, and recorded with the County in its maps of assessment and community facilities districts. "Building Permit" means a permit for new construction for a residential dwelling or non-residential structure. For purposes of this definition, "Building Permit" shall not include permits for construction or installation of retaining walls, utility improvements, or other such improvements not intended for human habitation. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2006-1" means Community Facilities District No. 2006-1 of the City of Diamond Bar (Diamond Bar Library) established by the City under the Act. "City" means the City of Diamond Bar. "City Council" means the City Council of the City, acting as the legislative body of CFD No. 2006-1, or its designee. "Commercial Property" means all Assessors' Parcels of Developed Property within CFD No. 2006-1 for which a Building Permit has been issued for purposes of constructing one or more commercial units, excluding Industrial Property. "Consumer Price Index" means the index published by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Los Angeles - Riverside -Orange County area. "County" means the County of Los Angeles. "Developed Property" means all Assessor's Parcels within CFD No. 2006-1 for which Building Permits were issued on or before March 1 preceding the Fiscal Year for which Special Taxes are being levied, provided that a Final Map was created on or before January 1 of the prior Fiscal Year and that each such Assessor's Parcel is associated with a Lot, as determined reasonably by the City. "Exempt Property" means all Assessor's Parcels within CFD No. 2006-1 designated as being exempt from the Special Tax as determined in Section F. C-2 "Facilities" means those public facilities and associated incidental expenses authorized to be funded by CFD No. 2006-1 as set forth in the formation documents for CFD No. 2006-1. "Facilities Special Tax" means the portion of the Special Tax authorized to be levied by CFD No. 2006-1 pursuant to the Act to fund Facilities. "Final Map" means a subdivision of property evidenced by the recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or the recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which Building Permits may be issued without further subdivision, or any other similar recorded final map for Non -Residential Properties. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Industrial Property" means all Assessors' Parcels of Developed Property within CFD No. 2006-1 for which a Building Permit has been issued for purposes of constructing an industrial use property, as classified by the Building Permit, Final Map, County's secured roll, or other recorded document approved by the City. "Land Use Type" means any of the land use types listed in Table 1 below. "Library Services" means the estimated and reasonable costs of providing library services including but not limited to (i) the salaries and benefits of library staff, (ii) maintenance and operation of the library, including, electricity, water, landscaping, and other direct costs, and (iii) materials, equipment, and other real or tangible property. "Lot" means an individual legal lot created by a Final Map for which a Building Permit could be or has been issued for the development of a Residential Property or Non -Residential Property. "Multi -Family Residential" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, condominiums, and apartment units. Assessor's Parcels classified by the County as mobile home parks will be levied the Special Tax, where each mobile home equals one Unit. `Non -Residential Property" means all Assessors' Parcels of Developed Property for which a Building Permit was issued for any type of non-residential use. e-3 "Proportionately" means, for Developed Property, the ratio of the actual Special Tax levied to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property. "Public Property" means any property within the boundaries of CFD No. 2006-1 that is owned by or irrecoverably dedicated to the City, the federal government, the State of California, the County, CFD No. 2006-1, or other public agency. "Residential Property" means all Assessors' Parcels of Developed Property within CFD No. 2006-1 for which a Building Permit has been issued for purposes of constructing one or more residential dwelling units. "Single -Family Residential" means all Assessors' Parcels of Developed Property within CFD No. 2006-1 for which a Building Permit has been issued for purposes of constructing one residential dwelling unit. "Services Special Tax" means the portion of the Special Tax authorized to be levied by CFD No. 2006-1 pursuant to the Act to fund Library Services; provided, however, that in the event of a shortfall in the Special Tax Requirement, the proceeds from the levy of the Services Special Tax may be used to pay debt service on or periodic costs of all outstanding Bonds. "Special Tax" means the sum of the Facilities Special Tax and the Services Special Tax authorized to be levied by CFD No. 2006-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement" means the amount required in any Fiscal Year for CFD No. 2006-1 to fund: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses associated with the Special Tax, (iii) any amount required to establish or replenish any reserve funds established in association with the Bonds, (iv) pay directly for acquisition and/or construction of Facilities which are authorized to be. financed by CFD No. 2006-1, (v) the budgeted costs of the Library Services to be levied by CFD No. 2006-1 up to $500,000 for the Base Year, which will be subject to the annual change in the Consumer Price Index for each subsequent Fiscal Year, and (vi) any delinquencies in the payment of principal or interest on Bonds which have occurred in the prior Fiscal Year or, based on existing delinquencies in the payment of Special Taxes, are expected to occur in the Fiscal Year in which the tax will be collected, less (vii) any amount available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. "Trustee" means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessors' Parcels within CFD No. 2006-1 not classified as Developed Property, which would be classified as Developed Property upon a Building Permit being issued. "Unit" means any residence in which a person or persons may live, including mobile homes, and is not considered to be for non-residential use. C-4 B. CLASSIFICATION OF ASSESSOR'S PARCELS Each Fiscal Year, beginning with Fiscal Year 2007-2008, each Assessor's Parcel within CFD No. 2006-1 shall be classified as Developed Property or Exempt Property. In addition, each Fiscal Year, beginning with Fiscal Year 2007-2008, each Assessor's Parcel of Developed Property shall further be classified as Single -Family Residential, Multi -Family Residential, Commercial Property, or Industrial Property. C. ASSIGNED SPECIAL TAX Each Fiscal Year commencing in Fiscal Year 2007-2008, each Assessor's Parcel of Developed Property within CFD No. 2006-1 shall be subject to an Assigned Special Tax. The Assigned Special Taxes for each Land Use Type of Developed Property for Fiscal Year 2007-2008 are shown in Table 1. TABLE 1 ASSIGNED SPECIAL TAX RATES Fiscal Year 2007-2008 Tax Land Use Type Facilities Services Assigned Class Special Tax Special Tax Special Tax ,I Single -Family $61,20 per Unit $27.80 per Unit $89.00 per Unit Residential 2 Multi -Family $44.50 per Unit $20.30 per Unit $64.80 per Unit Residential 3 Commercial Property $55.30 per Parcel $25.20 per Parcel $80.50 per Parcel 4 Industrial Property $41.20 per Parcel $18.80 per Parcel $60.00 per Parcel For each subsequent Fiscal Year, following the Base Year, the Services Special Tax for each Assessor's Parcel classified as Developed Property shall be adjusted by the annual percentage change in the Consumer Price Index reported in March of the prior Fiscal Year. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2007-2008 and for each subsequent Fiscal Year until terminated, the City Council shall levy the Special Tax on all Developed Property within CFD No. 2006-1 until the total amount of the Special Tax levied equals the Special Tax Requirement in accordance with the following: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property within CFD No. 2006-1 up to 100% of the applicable Assigned Special Tax for such Fiscal Year. C-5 Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Developed Property classified as Residential Property be increased by more than ten percent (10%) as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2006-1. E. TERMINATION OF SPECIAL TAXES 1. Facilities Special Tax For each Fiscal Year that any Bonds are outstanding, the Facilities Special Tax shall be levied on all Assessor's Parcels in CFD No. 2006-1 subject to the Facilities Special Tax. If any delinquencies for the Facilities Special Tax remain uncollected prior to or after all Bonds are retired, the Facilities Special Tax may be levied to the extent necessary to reimburse CFD No. 2006-1 for uncollected Facilities Special Tax obligations, but not later than the Fiscal Year 2046-2047, at which time foreclosure proceedings will commence to collect any remaining delinquent Facilities Special Tax obligations. 2. Services Special Tax The Services Special Tax shall be levied in perpetuity to finance the Library Services. F. EXEMPTIONS The City shall classify as Exempt Property: (i) Public Property, (ii) Assessor's Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor's Parcels used exclusively by a homeowners' association, (iv) Undeveloped Property, (v) Assessor's Parcels with public or utility easements making impractical their utilization for other purposes than those set forth in the easement, or (vi) Assessor's Parcels for which the entirety of such Assessor's Parcel is not located within the boundaries of CFD No. 2006-1 G. APPEALS Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2006-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). G-6 H. MANNER OF COLLECTION The annual Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2006-1 may collect the Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. C-7 Stradling Yocca Carlson & Rauth Draft of 6123106 ATTACHMENT D Types of Services to be Financed by Community Facilities District No. 2006-1 of the City of Diamond Bar (Diamond Bar Library) The proposed Services include: 1. to finance library services, including, but not limited to: (a) salaries and benefits of library staff, and (b) maintenance and operation of the library, including, but not limited to, electricity, water, landscaping and other direct costs, (c) materials, equipment and other real or tangible property, and (d) maintenance of library collection materials; 2. to finance the Services Incidental Expenses to be incurred, including: (a) the cost of planning the Services, and (b) all costs associated with the creation of the District, the determination of the amount of special taxes to be levied, costs otherwise incurred in order to carry out the authorized purposes of the District, the cost of levying the special tax and the cost incurred in administering the District. RESOLUTION NO. RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR TO INCUR BONDED INDEBTEDNESS WITHIN COMMUNITY FACILITIES DISTRICT NO. 2006-1 OF THE CITY OF DIAMOND BAR (DIAMOND BAR LIBRARY) SUBJECT TO A VOTE OF THE PEOPLE WHEREAS, the City Council of the City of Diamond Bar (the "City Council") as provided in Section 53318 of the Government Code of the State of California instituted proceedings to form Community Facilities District No. 2006-1 of the City of Diamond Bar (Diamond Bar Library) (the "Community Facilities District No. 2006-1" or the "District") pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Act"), as amended, pursuant to Resolution No. adopted by the City Council 'on the date hereof to (1) finance the purchase, construction, modification, expansion, improvement or rehabilitation of public facilities identified in Attachment "A" hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the "Facilities"); (2) to finance library services described in Resolution No.. (the "Services"); (3) to finance the incidental expenses to be incurred in connection financing the Facilities and forming and administering the District (the "Facilities Incidental Expenses"); and (4) to finance the incidental expenses to be incurred in connection with forming and administering the District and financing the Services (the "Services Incidental Expenses" and, together with the Facilities Incidental Expenses, the "Incidental Expenses"); and WHEREAS, the City Council estimates that the amount required to finance the Facilities and Facilities Incidental Expenses is approximately $15,000,000; and WHEREAS, in order to finance the Facilities and Facilities Incidental Expenses, the City Council intends to authorize the issuance of bonds for the proposed District in the maximum aggregate principal amount of $13,100,000, the repayment of which is to be secured by a special tax levied in accordance with Section 53328 of the Act on all property in the proposed District, other than those properties exempted from taxation in the rate and method of apportionment set forth in Attachment "C" to Resolution No. 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 true and correct. SECTION 2. It is necessary to incur bonded indebtedness within the proposed boundaries of proposed Community Facilities District No. 2006-1 in an amount not to exceed $13,100,000 to finance the costs of the Facilities and Facilities Incidental Expenses, as permitted by the Act. 2 SECTION 3. The bonds for the District will be issued for the purpose of financing the costs of the Facilities and the Facilities Incidental Expenses, including, but not limited to, the funding of reserve funds for the bonds, the financing of costs associated with the issuance of the bonds and all other costs and expenses necessary to finance the Facilities which are permitted to be financed pursuant to the Act. SECTION 4. It is the intent of the City of Diamond Bar to authorize the sale of bonds for the District in one or more series, in the maximum aggregate principal amount of $13,100,000 and at a maximum interest rate not in excess of the maximum rate permitted by law at the time that the bonds are issued. The term of the bonds shall be determined pursuant to a resolution of this City Council acting in its capacity as the legislative body of the District authorizing the issuance of the bonds, but such term shall in no event exceed 31 years from the date of issuance of the bonds of such series, or such longer term as is then permitted by law. SECTION 5. A public hearing (the "Hearing") on the proposed debt issue shall be held at 7:00 p.m. or as soon thereafter as practicable, on August 1 2006, at AQMD Government Center Auditorium, 21865 Copley Drive, Diamond Bar, California. SECTION 6. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within proposed Community Facilities District No. 2006-1, may appear and be heard. SECTION 7. The City Clerk is hereby directed to publish a notice (the "Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Community Facilities District No. 2006-1. Such publication shall be completed at least seven days prior to the date of the Hearing. PASSED, APPROVED AND ADOPTED this day of 2006 Mayor I, Tommye Cribbins, City Clerk of the City of Diamond Bar, California do hereby certify that the foregoing Resolution 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 , 2006, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED:COUNCIL MEMBERS: Tommye Cribbins, City Clerk 4 Stradling Yocca Carlson & Rauth Draft of 6123/06 ATTACHMENT A Types of Facilities to Be Financed by Community Facilities District No. 2006-1 City of Diamond Bar (Diamond Bar Library), Los Angeles County, California The proposed public facilities and expenses to be financed by the District include the purchase, construction, modification, expansion, improvement or rehabilitation of a municipal library, including all furnishings, equipment and supplies related thereto, and together with all appurtenant work in connection therewith, provided that such facilities have a useful life of five years or longer. Facilities Incidental Expenses: Incidental expenses proposed to be incurred include the following: (a) the cost of planning and designing the proposed public facilities to be financed, including the cost of environmental evaluations of those facilities; (b) any other expenses incidental to the construction, completion and inspection of the authorized work; and (c) the costs associated with the formation of the District, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District. CITY COUNCIL Agenda # 61 Meeting Date: 6/30/06 AGENDA REPORT TO: Honorable Mayor and Members of the City Council FROM: Linda C. Lowry, City Manager �r� TITLE: REVIEW DRAFT AGREEMENT WITH PO ONA UNIFIED SCHOOL DISTRICT TO CONSTRUCT IMPROVEMENTS AT LORBEER MIDDLE SCHOOL, TO OPERATE AND MAINTAIN THOSE IMPROVEMENTS AND TO SUPERVISE THE FACILITY DURING COMMUNITY USE, IN THE AMOUNT OF $879,500; DIRECT STAFF THAT UPON APPROVAL TO FORM BY THE CITY ATTORNEY, TO AGENDIZE THE AGREEMENT FOR APPROVAL ON THE CONSENT CALENDAR AT A FUTURE MEETING AND TO APPROPRIATE $76,000 FROM GENERAL FUND RESERVES AND $45,000 FROM THE PARK DEVELOPMENT FUND TO FULLY FUND THE SERVICES REQUIRED OF THE CITY BY THIS AGREEMENT FOR THE 2006/07 FY. RECOMMENDATION: Review draft agreement and direct staff, upon approval to form of the agreement by the City Attorney, to agendize the agreement and appropriation request on the Consent Calendar for the July 18, 2006 City Council meeting. CURRENT STATUS OF NEGOTIATIONS: The City Attorney and legal counsel for the School District have reviewed the Agreement and are working together to re -write the technical legal language of Sections 9.2 and 11 (both circled on attached draft agreement). Additional discussion between the attorneys will take place during the week of July 10 and staff expects to have the final draft agreement ready for City Council action at the July 18 meeting. If the agreement is approved by the City Council on July 18, the School Board will consider the agreement at their July 25 School Board meeting. Staff is asking the City Council to review the cost implications of the agreement at the June 30 Adjourned Regular City Council meeting and to indicate approval of the renovation and maintenance program for Lorbeer Middle School as presented. FINANCIAL IMPACT: The costs that will be borne by the City per this agreement are divided into three categories: 1) Renovation 2) Annual Maintenance 3) On-going maintenance and facility supervision, as presented below: Renovation Renovation of football field, track and slope along Golden Springs in summer of 2007: $750,000 ($750,000 is already appropriated in the 06107 FY Budget - Park Dev Fund) Annual Maintenance Refurbishing once per year of football field, track & Upper Field (Starts in summer of 2006): $45,000 Note -- $30,000 of the $45,000 cost will not be incurred in 2007 due to renovation work. ($45,000 will need to be appropriated from the Park Development Fund for 06107 FY) On-aoina maintenance and facility supervision On-going Maintenance of football field, track and restrooms for user groups: $45,000 ($45,000 will need to be appropriated from the General Fund) Facility Supervision provided by PT City Staff during use by community groups: $31,000 ($31,000 will need to be appropriated from the General Fund) Annual Electrical Costs for Lighting System (Ball Field Lights): 8 500 ($8,500 is already appropriated in the 06/07 FY Budget - General Fund) Total Cost for 2006107 FY: $879,500 Of the total cost, approximately $129,500 will be an annual recurring cost. However, in the 2007108 FY, the amount should be $30,000 less due to the renovation work planned for the summer of 2007, resulting in a cost of $99,500. BACKGROUND: The City of Diamond Bar constructed lights on the football field at Lorbeer Middle School to provide an additional lighted athletic field for the youth sports organizations in Diamond Bar. Since the lights became available for community use in January 2000, the added wear and tear on the field has resulted in its gradual deterioration. The field's maintenance needs due to the added use exceeds the capacity of the School District's maintenance program for a typical middle school. The choices for this field are to either restrict community use or for the City to renovate and maintain the field. With the limited amount of athletic fields in Diamond Bar, staff believes utilizing City resources to create a quality field for the youth of Diamond Bar is in the best interest of the community. Staff has negotiated with Pomona Unified School District officials to develop an agreement to improve and maintain the football field at Lorbeer. The City Council also asked staff to include improvement and maintenance of the slope along Golden Springs in the negotiations to beautify this area of the community. Staff believes that the best available program for improving and maintaining the Lorbeer facilities has been negotiated, one that meets the needs of the youth sports organizations in Diamond Bar and also addresses the concerns of PUSD officials related to extensive community use of the Lorbeer Middle School campus. Final legal wording of the agreement was still being discussed by the attorneys at the time this report was written. DISCUSSION: The agreement being negotiated with PUSD officials includes the following provisions: Ten year term that may be terminated by either party by giving six months notice. 2. Opportunity for unlimited number of five year extensions. 3. Requires the City to aerate, reseed, fertilize, top dress and complete minor irrigation repairs on football field and complete minor improvements to the running track, by September 1, 2006. Estimated cost to complete this work is $30,000. 4. Requires the City to complete work on the upper field to ensure that it is at a level equal to or better than its condition prior to the start of work itemized in number 3. Work must be completed by September 21, 2006 and will cost an estimated $15,000. 5. Requires the City to complete major renovations to the football field and slope along Golden Springs including a new water meter to irrigate the football field and slope, irrigation improvements to the football field and slope, new sod for the football field and necessary improvements to the track. Estimated cost to complete this work is $750,000. Work must be completed within a 60 day work schedule between the end of school in June, 2007 and August 20, 2007. 6. After work itemized in number 5 is completed, City is required to complete work on the upper field to ensure that its condition is at a level equal to or better than its condition prior to the start of work itemized in number 5. Work must be completed by September 21, 2007 and will cost an estimated $15,000. 7. Requires the City to maintain the football field, slope and lighting systems, including irrigation, mowing, trimming, edging, cleaning, trash removal and changing bulbs and paying for electricity for the ball field lights. Annual cost for this work is estimated at $45,000 for maintenance and $8,500 for electrical costs. 8. Provides community use of School District owned restroom facilities. City is required to maintain these restroom facilities after community use each night. Annual cost is included in total listed in item 7. 9. City is responsible for any damage to Lorbeer campus due to or during community use of football field. 10. City shall schedule and monitor community use of outdoor facilities at Lorbeer. Monitoring costs are estimated at $31,000 per year. 11. City has the right to charge and collect fees from community users scheduled at Lorbeer outdoor facilities. Currently the City does not charge a fee to youth sports organizations utilizing these facilities. 12. Agreement entitles community groups to utilize outdoor athletic facilities at Lorbeer.Middle School seven (7) day per week, Spm — 10pm on school days and 7am -- 10pm on non -school days. Staff estimates that the annual recurring cost to the City for this agreement is $129,500. However, in the 2007108 FY, the amount should be $30,000 less due to the renovation work planned for the summer of 2007, resulting in an annual cost of $99,500. According to PUSD officials, if the City Council approves this agreement on July 18, the School Board will consider it at their July 25, 2006 meeting. Director of Community Services Attachment: Lorbeer Middle School Use Agreement — Draft (with sections 9.2 and 11 circled because the legal wording is still under discussion between the attorneys) LORBEER MIDDLE SCHOOL USE AGREEMENT CITY OF DIAMOND BAR - POMONA UNIFIED SCHOOL DISTRICT This Agreement ("Agreement') is made and entered into this , 2006, by the City of Diamond Bar ("City'), and the Pomona District ("District's. Recitals DSAIFr We 27, 2006 day of Unified School A. Chapter 10 of Part 7 of Division 1 of Title 1(§§10900 et seq.) of the Education Code of the State of California authorizes and empowers school districts and cities to organize, promote and conduct programs of community recreation, to establish systems of playgrounds and recreation, and to acquire, improve, maintain, and operate centers within or without the territorial limits of the City. B. The City and the District entered into that certain Agreement for Use of f=acilities, dated October 4, 1994 ("Use Agreement', that provided, inter alis, for the cooperative development, use, and maintenance of certain school and recreation areas, facilities, and buildings described in the Agreement. C. The City and the District also entered into that certain Addendum to Agreement for Use of Facilities, dated June 17, 1997 ("Addendum's, acknowledging, as a public benefit to the community, the capital improvement lighting project ("Lorbeer Lighting Project') at the Lorbeer Middle School ("Lorbeer') football field ("Football Field"), depicted on Exhibit"A", funded in its entirety by the City, and according to the terms of the existing Use Agreement. D. The City advised the District that the Lorbeer Lighting Project construction was completed and accepted by the City on January 4, 2000 based on the Notice of Completion for the Lorbeer Lighting Project. Now, Therefore, in consideration of the mutual covenants and conditions contained herein, the parties hereto agree as follows: 1. Lorbeer Only. The parties acknowledge that this Agreement affects only the use of Lorbeer and, except as specifically provided in this Agreement as it relates solely to Lorbeer, makes no amendment to or modification of and has no impact on the terms and conditions of the Use Agreement and the Addendum. 2. Term. The term of this Agreement ("Term's shall be ten (10) years, commencing with the execution date of this Agreement. Notwithstanding anything to the contrary contained herein, either party may terminate this Agreement, with or without cause, after giving 180 days written notice thereof to the other party. This Agreement may be extended by mutual consent for successive five-year terms thereafter, upon the same terms and conditions herein contained, as evidenced by a written amendment to this Agreement signed by both parties. Nothing in Lorbeer/Diamond Bar Use (6127106) DRAF ' June 27, 2006 this section is intended to alter the amortization terms stated in Section 10 of this Agreement. 3. Renovation of Fields. 3.1. On or before September 1, 2006, City shall aerate, reseed, fertilize, top dress and complete minor irrigation repairs on the Football Field and complete minor improvements to the running track as agreed upon by both agencies, at City's sole cost and expense. 3.2. Upon the completion of the work listed in Section 3.1 of this Agreement, to compensate for the additional use of the upper field ("Upper Field"), depicted on Exhibit "B", by community users of the City ("Community Users') during said work on the Football Field and track, on or before September 21, 2006, City shall return the Upper Field to a level equal to or better than the condition the Upper Field was in on the day prior to the closure of the Football f=ield for said work. 3.3. On or before August 20, 2007, City shall complete at City's sole cost and expense, the renovation of the Football Field pursuant to the specifications attached as Exhibit "C" ("Initial Renovation'�. 3.4. Upon the completion of the Initial Renovation, to compensate for the additional use of the Upper Field by Community Users of the City during the renovation of the Football Field, on or before September 21, 2007, City shall return the Upper Field to a level equal to or better than the condition the Upper Field was in on the day prior to the closure of the Football Field for the Initial Renovation. 4. On Goina Maintenance and Repair. 4.1. Notwithstanding anything to the contrary contained herein, during the Term, the City shall maintain the Football Field at a level typical of a City's park that the City acknowledges shall be at a level equal to or greater than a typical unlighted middle school football/soccer field maintained by District personnel. ("Minimum Maintenance Level`). 4.2. Maintenance of Football Field provided by City shall include, without implied limitation, irrigation, mowing, trimming, edging, cleaning, and maintenance of the lighting system of the Lorbeer Lighting Project ("Lighting System"}. 4.3. City shall, at the City's sole cost and expense, remedy any and all damage to the Lighting System due to community use. 4.4. City is responsible for the removal of all trash left on Lorbeer by Community Users. With respect to a scheduled use, the City acknowledges that all trash must be removed by 7:30 a.m. of the day following said use. Lorbeer/Diamond Bar Use (6/27/06) 'Z' DRAFT June 27, 2006 4.5. City and Community Users shall have use of restroom facilities, as identified on Exhibit A (collectively, "Restroom Facilities'l The Restroom Facilities shall be maintained by the City and serviced after the community's use no later than 11:00 p.m. each night, seven days per week, and at a level typical of a City's park restroom facility that the City acknowledges that shall be at a level equal to or greater than a typical athletic field restroom maintained by District personnel. 4.6. City shall repair, cause to be repaired or reimburse District, no later than 30 days after an invoice from the District, for the cost of repairing damage to any portion of Lorbeer that occurs as a result of use by the City or Community Users, or resulting from any act or omission of the City, excepting any reasonable wear and tear by District's use of Lorbeer. 4.7. District shall report to the City, and City and Supervisor, as defined herein, shall report to District, as soon as practical, any damage to District property by a Community User, whether during scheduled use or not. Damage resulting from community use that creates a health and safety issue must be resolved by City immediately. Repair work for all other damage resulting from community use must be completed by City within 48 hours of its reporting, or as soon as possible if the 48-hour time period is not feasible. 5. Annual Maintenance. To compensate for extensive use of the Football Field by Community Users, once a year during the Term, the City shall renovate the Football Field to a typical football/soccer field maintained by District personnel, but no less than the Minimum Maintenance Level, including, without implied limitation, aeration, over seeding, fertilizing, and top dressing the Football Field ("Annual Maintenance'l. 5.1. The Football Field shall be secured with a 6' high construction fence and the Football Field shall remain closed from the day after the last day of school in June until the third Monday in August for the Annual Maintenance. 5.2. Once a year during the Term, upon the completion of the Annual Maintenance and no later than September 21, the City shall aerate, over seed, fertilize, and top dress the Upper Field in recognition of the additional use the Upper f=ield will receive during the closure of the Football Field as provided in this Section 5. 6. Lighting System. City shall pay for all electrical and maintenance costs related to the Lighting System. Utility expenses, including, without implied limitation, the cost of electricity for the Lighting System, shall be paid by the City to the District on a quarterly basis. 7. Priority of Use. The parties acknowledge that the priorities of use of (i) the Football Field, and (ii) the Upper Field during the time the Football Field is closed during Annual Maintenance (individually a "Permitted Field," and collectively "Permitted Fields"), shall be governed by the previously agreed provisions of the Addendum. 8. Scheduling the Use. The City shall be responsible for scheduling the use of the Football Field when Lorbeer Middle School is not in session ("Use Agreement Period' ). The City Lorbeer/biamond Bar Use (6/27106) - - ORAFr June 27, 2006 acknowledges that on days that Lorbeer Middle School is in session, the Use Agreement Period does not commence, and no events shall be scheduled, until after 5:00 p.m. for City or community use. The City acknowledges that the District shall have the right to terminate the City's responsibility for scheduling and assume the responsibility for scheduling the use of the Permitted Field during the Use Agreement Period with 90 days written notice to the City. 8.1. City shall schedule the Permitted Field during the Use Agreement Period by the District, City and Community Users for the following two periods: (i) January 1 through July 31, and (ii) August 1 through December 31. 8.2. Notwithstanding anything to the contrary, District retains the right to use at all times of the day and every day of the week all or a portion of Lorbeer, including, without implied limitation, the Permitted Field, without the requirement of notice to the City or Community Users, however, the District will use reasonable efforts to provide at least seven (7) days notice for a use that has not been previously scheduled. 8.3. A schedule of users shall be presented to. District by City no less than 14 days prior to all scheduled uses. 8.4.' City shall have the right to use the Lighting System seven (7) days per week; provided City complies with all applicable governmental rules and regulations related to the use of the Lighting System, including, without implied limitation, environmental and light pollution regulations. City acknowledges this level of use may result in deterioration of the field conditions of the Football Field and.the need for the City to complete field renovation work in addition to maintenance responsibilities as described in this Agreement. 8.5. The City acknowledges that the .Lighting System shall not be used or otherwise operated after 10:00 p.m. 8.6. No vehicles shall drive or park on grass or asphalt areas that are not designated by District for driving or parking. 8.7. City shall provide daily supervision of scheduled community use of the Permitted Field. City's supervision of the Permitted Field shall be provided on a periodic basis during the day of use, but in no case shall this supervision be considered security or policing of the entire school campus of Lorbeer. The duties of the City's supervisor ("Supervisor") shall include, without implied limitation, (i) check and report to Sheriff's Department of vehicles that are improperly or illegally parked on asphalt play courts or turf fields of Lorbeer, (Ii) check permits issued by City to Community Users to verify compliance with the conditions of approval for the permit, (Iii) check that the Restrooms Facilities are available to Community Users to verify proper stocking of paper products and maintain sanitary conditions throughout the day, (iv) reporting any damage to District and to the City, and (v) verify trash is picked up by Community Users and that trash cans are emptied into proper dumpster and trash cans have liners in place. Lorbeer/Diamond Bar Use (6/27/06) -4- KRAIT June 27,2006 8.8. The District's students, employees and property shall be respected at all times. Any violators of this provision shall subject the violator to the immediate loss of use of the Permitted Field and access to Lorbeer. 8,9. Users of the Permitted Field shall at no time interfere with District's students and employees, District's use of Lorbeer, District's contractors or other District authorized operations at Lorbeer. Any violators of this provision shall subject the violator to the immediate loss of use of the Permitted Field and access to Lorbeer. 8.10. All publicly released references to the Permitted Fields and Lorbeer shall acknowledge District's ownership of the Permitted Fields and Lorbeer. 8.11. Neither the City nor a Community User is allowed to use Permitted Field when District or City determines that the Permitted Field is unusable due to inclement weather. The typical closure guideline is one day of closure for each day of rain. Any violators of this provision shall be subject to the immediate loss of use of the Permitted Field and access to Lorbeer. 8.12. City may charge and collect fees for community use of the Permitted Field. 9. Casualtv 9.1. If any portion of the Lorbeer Lighting Project is substantially damaged or destroyed by fire, war, earthquake, flood, storm, or other casualty beyond the control of the parties hereto to such an extent that the damaged portion of the Lorbeer Lighting Project cannot be restored to its previous condition within 120 days after the happening of the casualty, then City shall have the option of restoring the damaged portion of the Lorbeer Lighting Project to the condition as of the date of the casualty. In the event the City does not elect to perform such restoration, this Agreement shall terminate and the District shall have the option of sending the City written notice to and City acknowledges that as soon as feasible to do so, but in no event later than 45 days after receipt of said notice, that City shall remove the Larbeer Lighting Project, including, without implied limitation, all fixtures, equipment and personal property related to the Lorbeer Lighting Project, from Lorbeer and return Lorbeer to substantially the same condition as prior to installation of the Lorbeer Lighting Project, normal wear and tear excepted ("Original Condition`l. If the Lorbeer Lighting Project is damaged or destroyed by any of the causes enumerated above and in the event they can be restored within 120 days after the happening of the casualty, then City shall restore as soon as feasible to do so and the Agreement shall continue in full force and effect. 9.2, If any portion of Lorbeer is substantially damaged or destroyed by fire, war, earthquake, flood, storm, or other casualty beyond the control of the parties hereto to such an extent that (i) the improvements damaged cannot be restored to their previous condition within 120 days after the happening of the casualty, and/or (ii) the District determines as a result of the damage to Lorbeer that is in the best interests of the District's students or staff Lorbeer/Diamend Bar Use (6/27/06) -5- MAR June 2i, 2006 or the public, then District snail have the option of terminating this Agreement as of the date of the casualty, 10. Termination. Should either party during the Term determine that it is necessary and in the best interests of the public purposes which it is authorized and empowered to carry out, to terminate, in the manner prescribed by this Agreement, the community recreational uses of the Football Field, upon such termination all improvements installed or constructed on said facility.shall be left in place. Either party may terminate this Agreement, with or without cause, after giving 180 days written notice thereof to the other party. Upon the giving of said notice, and the expiration of 180 days, this Agreement shall be of no further force or effect. Upon termination or expiration of this Agreement, District shall have the option of requiring the City to remove any and all equipment and materials placed by the City upon Lorbeer, and to return Lorbeer to its Original Condition. If the District terminates the Agreement without cause prior to January 4, 2010, District shall compensate City in an amount equal to the cost the City incurred in constructing the Lighting System ($214,000), divided by 10 ($21,400), then multiplied by the number of years remaining until January 3, 2010 (individually a "Remaining Year'j the 10 -year anniversary of the Notice of Completion, dated January 4, 2000, for the Lorbeer Lighting Project. In such events, and if the District does not exercise its option to require the City to remove the equipment, title to such equipment shall be passed to District on the date of termination and upon payment of compensation due as provided above. If District terminates this Agreement between January 4 and July 3, then the partial year shall be considered as a full Remaining Year. If District terminates this Agreement between July 4 and January 3, then the partial year shall not be considered as a Remaining Year. 11. Indemnification, Assumption of Risk and .Release. 11.1. City acknowledges that there may be conditions that exist at Lorbeer (collectively, "Conditions') that carry SIGNIFICANT RISK OF SERIOUS PERSONAL INJURY, DEATH OR PROPERTY DAMAGE, to City and City's Community Users, employees, guests, invitees and others. City also acknowledges that there are natural, mechanical, and environmental conditions and risks that independently or in combination with its activities that may cause property damage, or severe or even fatal injuries to City or City's Community Users, employees, guests, invitees or others. City acknowledges that the District and its elected and appointed board members, superintendent, employees, volunteers, attorneys and agents are not responsible for City or City's Community Users', employees', guests', or invitees' safety or the safety of others in or around Lorbeer or the Conditions. City acknowledges that City has accepted full responsibility for the conduct and safety of its Community Users, employees, guests, invitees and others who have gained access to Lorbeer as a result of the terms and conditions of this Agreement. City acknowledges and accepts the consequences of all risks, conditions and hazards that may occur while at Lorbeer and/or the Conditions, whether the consequences are foreseeable or unforeseeable, and whether the consequences are the result of City's or City's Community Users', employees', guests', or invitees' conduct or the conduct of others who have gained access to Lorbeer as a result of the terms and conditions of this Agreement. Lorbeer/Diamond Bar use (5/27/06) '6' DRAFT June 27, 2006 11.1„1. CITY HEREBY INDEMNIFIES AND SHALL DEFEND, WITH COUNSEL CHOSEN BY DISTRICT, AND HOLD THE DISTRICT, AND ALL OF ITS ELECTED AND APPOINTED BOARD MEMBERS, SUPERINTENDENT, EMPLOYEES, VOLUNTEERS, ATTORNEYS AND AGENTS, FREE AND HARMLESS FROM ANY AND ALL CLAIMS, INCLUDING, WITHOUT IMPLIED LIMITATION, CLAIMS FOR PERSONAL INJURY, DEATH OR PROPERTY DAMAGE, ARISING FROM THE USE OF LORBEER, INCLUDING, WITHOUT IMPLIED. LIMITATION, TO THE CONDITIONS. CITY ASSUMES ALL RISKS THAT MAY ARISE THEREFROM. CITY AND ITS ELECTED AND APPOINTED OFFICIALS, OFFICERS, EMPLOYEES, COMMUNITY USERS, GUESTS, INVITEES AND OTHERS WHO HAVE GAINED ACCESS TO LORBEER AS A RESULT OF THE TERMS AND CONDITIONS OF THIS AGREEMENT, RELEASE, WAIVE AND DISCHARGE ANY CLAIMS WHATSOEVER THAT THEY MAY HAVE AGAINST THE DISTRICT AND ITS ELECTED AND APPOINTED BOARD MEMBERS, SUPERINTENDENT, EMPLOYEES, VOLUNTEERS, ATTORNEYS AND AGENTS, WHETHER KNOWN OR UNKNOWN. 11.1.2. BY ITS INITIALS BELOW, CITY ACKNOWLEDGES AND AGREES THAT IT HAS READ, UNDERSTOOD, AND AGREED TO THIS AGREEMENT OF LIABILITY, ASSUMPTION OF RISK AND RELEASE, ALL OF WHICH SHALL BE BINDING ON IT, AND ON ITS EMPLOYEES, CONTRACTORS, ASSIGNS, LICENSEES, AND INVITEES. Initials of City 11.2. Except as provided in Section 11.1, District shall indemnify and hold harmless the City, and its officers, agents, servants, and employees, from any and all claims, demands, actions, causes of action, damages or liability for injury to or death of persons, or for damage to facility, resulting from or arising out of any act or omissions of District or its officers, agents servants or employees in the exercise of any right or privilege granted to District pursuant to this Agreement. 11.3. City shall require all scheduled Community Users to deliver a copy of proof of insurance that maintains no less than $1,000,000 of insurance to fund the indemnification requirements of this Section 11, and to sign and deliver to City prior to being granted access to Lorbeer a separate agreement that contains the following provisions: "Agreement of Liability, Assumption of Risk and Release. (a) Community User acknowledges that there may be conditions that exist at Lorbeer (collectively, "Conditions'that carry SIGNIFICANT RISK OF SERIOUS PERSONAL INJURY, DEATH OR PROPERTY DAMAGE, to Community User and Community User's members, guests, invitees and others. Community User also acknowledges that there are natural, mechanical, and environmental conditions and risks that independently or in combination with its activities that may cause property Lorbeer/Diamond Bar Use (6/27/06) -7- KRAFT June 27, 2006 damage, or severe or even fatal injuries to Community User or Community User's members, guests, invitees or others. Community User acknowledges that the Pomona Unified School District ("District") and its elected and appointed board members, superintendent, employees, volunteers, attorneys and agents are not responsible for Community User or Community User's members', guests', or invitees' safety or the safety of others in or around Lorbeer or the Conditions. Community User acknowledges that Licensee has accepted full responsibility for the conduct and safety of its members, guests, invitees and others. Community User acknowledges and accepts the consequences of all risks, conditions and hazards that may occur while at Lorbeer and/or the Conditions, whether the consequences are foreseeable or unforeseeable, and whether the consequences are the result of Community User's or Community User's members', guests', or invitees' conduct or the conduct of. others. (b) COMMUNITY USER HEREBY INDEMNIFIES AND AGREES TO DEFEND WITH COUNSEL CHOSEN BY DISTRICT, PROTECTAND HOLD HARMLESS THE DISTRICT, AND ALL OF ITS ELECTED AND APPOINTED BOARD MEMBERS, SUPERINTENDENT, EMPLOYEES, VOLUNTEERS, ATTORNEYS AND AGE=NTS, FROM ANY AND ALL CLAIMS, INCLUDING WITHOUT IMPLIED LIMITATION CLAIMS FOR PERSONAL INJURY, DEATH OR PROPERTY DAMAGE, ARISING FROM THE USE OF LORBEER, INCLUDING, WITHOUT IMPLIED LIMITATION, TO THE CONDITIONS. COMMUNITY USER ASSUMES ALL RISKS THAT MAY ARISE THEREFROM. COMMUNITY USER AND ITS MEMBERS, GUESTS, INVITEES AND OTHERS, RELEASE, WAIVE AND DISCHARGE ANY CLAIMS WHATSOEVER THAT THEY MAY HAVE AGAINST THE DISTRICT AND ITS ELECTED AND APPOINTED BOARD MEMBERS, SUPERINTE=NDENT, EMPLOYEES, VOLUNTEERS, ATTORNEYS AND AGENTS, WHETHER KNOWN OR UNKNOWN. (c) BY ITS INITIALS BELOW, COMMUNITY USER ACKNOWLEDGES AND AGREES THAT IT HAS READ, UNDERSTOOD, .AND AGREED TO THIS AGREEMENT OF LIABILITY, ASSUMPTION OF RISK AND RELEASE, ALL OF WHICH SHALL BE BINDING ON IT, AND ON ITS ASSIGNS AND INVITEES. Initials of Community User District shall have the right to obtain prior to being granted access to Lorbeer, and at anytime during any access to Lorbeer, a copy of (i) proof of insurance required by all scheduled Community Users pursuant to this Section to deliver a copy of that maintains no less -than $1,000,000 of insurance to fund the indemnification requirements of this Section 11.3, and (ii) the separate agreement that contains the above provisions. Any failure to provide by the Community User the required copies of(i) proof of insurance required by this Section 11.3, and (ii) the separate agreement that contains the above Lorbeer/Diamond Bar Use (6/27/06) -8- DRAFT June 27, 2006 provisions, shall subject the Community User and Community User's members', guests', or invitees'to the immediate loss of use of the Permitted Field and access to Lorbeer, 12. Delive of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: CITY: City of Diamond Bar Director of Community Services 21825 Copley Drive Diamond Bar, CA 91765-4178 XR11«1040 Pomona Unified School District Attn: Assistant Superintendent, Business Services - Fiscal 800 South Garey Avenue Pomona, CA 91766 Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepared and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 13. Com liance with Laws, City shall keep fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting its use of Lorbeer, including all Cal/OSHA requirements, and shall give all notices required by law. City shall be liable for all violations of such laws and regulations in connection with its use of Lorbeer. If City performs any work knowing It to be contrary to such laws, rules and regulations and without giving written notice to District, City shall be solely responsible for all costs arising therefrom. City shall defend, indemnify and hold District, its elected and appointed board members, superintendent, employees, volunteers, attorneys and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations. 14. Conflict of Laws. This Agreement shall be governed by the laws of the State of California. This Agreement will not be governed by the Uniform Commercial Code. To the extent that there is to be delivery or performance of services under this Agreement, such services will not be deemed "goods" within the definition of the Uniform Commercial Code. 15. Integration. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof,.and supersedes all prior negotiations, understandings or agreements. Neither of the parties has relied upon any oral or written representation or oral or written information given to the party by any representative of the other party. 16. Severability. If one or more of the provisions of this Agreement are hereafter declared invalid or unenforceable by judicial, legislative or administrative authority of competent jurisdiction, then the parties hereto agree that the invalidity or unenforceability of any of Lorbeer/Diamond Bar Use (6/27/06) -9- DRAFT June 27, 2006 the provisions shall not in any way affect the validity or enforceability of any other provisions of this Agreement. 17. Modification. No change or modification of the terms or provisions of this Agreement shall be deemed valid unless set forth in writing and signed by both parties. 18. Construction of Agreement. This Agreement will be liberally construed to effectuate the intention of the parties with respect to the transaction described herein. In determining the meaning of, or resolving any ambiguity with respect to, any word, phrase or provision of this Agreement, neither this Agreement nor any uncertainty or ambiguity herein will be construed or resolved against either party (including the party primarily responsible for drafting and preparation of this Agreement), under any rule of construction or otherwise, it being expressly understood and agreed that the parties have participated equally or have had equal opportunity to participate in the drafting hereof. 19. Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. 20. Headings. The headings of sections of this Agreement have been inserted for convenience of reference only and shall not affect the interpretation of any of the provisions of this Agreement. 21. Attorneys' l=ees. In the event of any action or proceeding (including, without implied limitation, any bankruptcy proceeding) to enforce or construe any of the provisions of this Agreement, the prevailing party in any such action or proceeding shall be entitled to attorneys' fees and costs. 22. Further Assurances. Each of the parties hereto shall execute and deliver any and all additional papers, documents and other assurances, and shall do any and all acts and things reasonably necessary in connection with the performance of their obligations hereunder and to carry out the intent and agreements of the parties hereto. 23. Assignment. City shall not assign this Agreement or any interests therein without the prior written approval of the District. Any such attempt to assign or sublet this Agreement without District approval shall be invalid. 24. Authoritv. City has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective party. Lorbeer/Diamond Bar Use (6/27/06) -10- DRAFT June 27, 2006 25. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument, 26. Education Code Section 17604. In accordance with Education Code Section 17604, this Agreement is not valid or an enforceable obligation against the District until approved or ratified by motion of the Governing Board duly passed and adopted. 27. APPROVED SIGNATURE. IN ADDITION, THIS AGREEMENT IS NOT VALID OR AN ENFORCEABLE OBLIGATION AGAINST THE DISTRICT UNTIL SIGNED BY THE SUPERINTENDENT OR HIS APPROVED DESIGNEE. In Witness Whereof, the parties have executed this Agreement as of the date first above written. CITY OF DIAMOND BAR: POMONA UNIFIED SCHOOL DISTRICT Mayor Date: City Manager Date: Approved as to form: City Attorney Date: Pamela 3. Lopez, Assistant Superintendent, Business Services - Fiscal Approved by Board: Approved as to form: Lorbeer/Diamond Bar Use (6127/06) -11- Exhibit "A" Spiel D[, V SALE:1" 120'-W i� Exhibit"S" I I I� __. I' a Upper Field 0 o � spat gi, SALE: 1" 120V ORJIFT June 27, 2006 Exhibit C 1. Working cooperatively with District staff, City shall procure a contract landscape architect to develop plans and specifications to improve Football Field, track and slope along Golden Springs. 2. Improvements shall include a separate water meter to irrigate Football Field and slope. 3. irrigation improvements to Football Field will be made to ensure proper irrigation. 4. New sod will be placed on Football Field. Improvements to track will be made so it is safe for public and school use. 6. City shall maintain improvements during Term. Lorbeer/Diamond Bar Use (6/27/06) �2_ AGENDA NO. 6.2 NO DOCUMENTATION AVAILABLE REPORT WILL BE HAND DELIVERED ON TUESDAY, JUNE 27, 2006 6-30-2006 SUBMITTED TO DIAMOND BAR CITY COUNCIL BY PAUL KITTLE Libraries and librarians in the future — a short introspective by Paul Kittle Many pundits and others now ask -- is the library dead? Is it a thing of the past? Will Google become the next "library." The answers are neither simple nor complete. A quick answer to all those questions is "yes... and no." The fundamental roles have not changed: guiding patrons to solutions or paths to answers, but -- the path has changed dramatically. When I first became involved with libraries in the "21 st century" it was prior to what we now consider "the Internet." Even as I was completing my Master's degree in Library & Information Science at U.S. C. (you DID know it requires a Master's degree to be a librarian, didn't you?) I began to look at ways to deliver information and solutions to my prospective audience — the medical field. During my 20 odd years as a medical center employee and a librarian, I dealt with administrators who, at first, could not see the value of electronic service, then could not see that electronic service does NOT replace people or physical copies of material, or even save money — but rather extends the value of each of them. In a community college, where students are now coming from an environment of iPods and instant gratification, the role of the library becomes even more critical. It is true that many only want "quick & dirty" searches or skills — and that does not make such things inheritably bad. If you are looking for a specific news item in a major newspaper, you don't necessarily wish to read the entire paper just to find that one article. However, when you are looking for depth of information, then knowing both what and how to search becomes paramount. That becomes the difference between an informed public and a nation of "sheep" who regurgitate right or left wing radiolty personalities instead of examining the real facts. This is the role of libraries. When mass computing started on the horizon years ago, there were unfortunately too few forward-looking library leaders to take control and guide this new paradigm. Even now, the undisputed leader in the field, Google, still lacks much to be a quality search engine for quality results. Many of us are now trying to change that and wrestle control back — for we are specifically trained to guide the user into the information path. Information is like food, There are times you want something quick and easy, and there are times when you need something slower and more complete. Such is the information -seeking behavior of people. If the library cannot provide this menu, then companies whose major existence depends upon commercials and directed (via payment) results will dominate. The "information divide" will grow and eventually we may see wave after wave of "instant data" without the knowledge necessary to digest it. Failure to support public libraries, usually the anchor between school, college, and adult learning, is to fail the public trust and the future. Paul Kittle, MS, MSLS Distance LearninglElectronic Reference Librarian "Lord, please make me the kind of person my dogs think I am." - Anon (909) 594-5611 ext. 4258 Building 6-231/262C P� VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL TO: CITY CLERK FROM: DATE: Xi ADDRESS: % HONE: ORGANIZATION: AGENDA #/SUBJECT: 1 V14 k / do V10 � C I expect to address the Council on the subject agenda item. Please have the Council Minutes reflect my narhe and address as written above. Siafiature VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL TO: FROM: . ADDRESS: ORGANIZATION: AGENDA #/SUBJECT: ITY ' ( DATE: ` C ��r PHONE: 9(121-04Y I expect to address the Council on the subject agenda item. Please have the Council Minutes reflect my name and address as written above. Signature