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HomeMy WebLinkAbout2021.04.06 Agenda Packet - Regular MeetingCity Council/Special Public Financing Authority Agenda Tuesday, April 6, 2021 6:30 PM PUBLIC ADVISORY: Consistent with the Governor’s latest Executive Order to Stay at Home, avoid gatherings and maintain social distancing, the regular meeting portion of the agenda will be conducted telephonically and Members of the City Council and staff will be participating via Teleconference. There will be no physical meeting location for the regular meetin g. How to Observe the Meeting: To maximize public safety while still maintaining transparency and public access, members of the public can observe the meeting by calling +1 (562) 247-8321, Attendee Access Code: 553- 855-782 or by visiting https://attendee.gotowebinar.com/register/5352661612070564879. How to Submit Public Comment: Members of the public may provide public comment by sending written comments to the City Clerk by email at cityclerk@DiamondBarCA.gov by 5:30 p.m. on the day of the meeting. Please indicate in the Subject Line “FOR PUBLIC COMMENT.” Written comments will be distributed to the Council Members and read into the record at the meeting, up to a maximum of five minutes. Alternatively, public comment may be submitted by logging onto the meeting through this link: https://attendee.gotowebinar.com/register/5352661612070564879. Members of the public will be called upon one at a time during the Public Comment portion of the agenda, and will be asked to state their name and agenda item they wish to comment on. Speakers are limited to five minutes per agenda item, unless the Mayor determines otherwise. American Disability Act Accommodations: Pursuant to the Executive Order, and in compliance with the Americans with Disabilities Act, if you need special assistance to participate in the Council Meeting, please contact the City Clerk’s Office (909) 839-7010 within 72 hours of the meeting. City Council video recordings with transcription will be available upon request the day following the Council Meeting. The City of Diamond Bar thanks you in advance for taking all precautions to prevent spreading the COVID-19 virus. ANDREW CHOU Council Member STAN LIU Council Member STEVE TYE Council Member NANCY A. LYONS Mayor RUTH M. LOW Mayor Pro Tem City Manager Dan Fox • City Attorney David DeBerry • City Clerk Kristina Santana DIAMOND BAR CITY COUNCIL MEETING RULES Welcome to the meeting of the Diamond Bar City Council. Meetings are open to the public and are broadcast on Spectrum Cable Channel 3 and Frontier FiOS television Channel 47. You are invited to attend and participate. Copies of staff reports or other written documentation relating to agenda items are on file and available for public inspection by contacting the Office of the City Clerk. If requested, the agenda will be made available in an alternative format to a person with disability as required by Section 202 of the Americans with Disabilities Act of 1990. If you have questions regarding an agenda item, please contact the City Clerk at (909) 839-7010 during regular business hours. 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. 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 meeting. 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, Spectrum Cable Channel 3, Frontier FiOS television Channel 47 and on the City’s website at www.diamondbarca.gov. The City Council may take action on any item listed on the agenda. HELPFUL PHONE NUMBERS Copies of agendas, rules of the Council, Video of meetings: (909) 839-7010 Computer access to agendas: www.diamondbarca.gov General information: (909) 839-7000 Written materials distributed to the City Council within 72 hours of the City Council meeting are available for public inspection immediately upon distribution in the City Clerk’s Office at 21810 Copley Dr., Diamond Bar, California, during normal business hours. THIS MEETING IS BEING VIDEO RECORDED AND BY PARTICIPATING VIA TELECONFERENCE, YOU ARE GIVING YOUR PERMISSION TO BE TELEVISED. THIS MEETING WILL BE RE-BROADCAST EVERY SATURDAY AND SUNDAY AT 9:00 A.M. AND ALTERNATE TUESDAYS AT 8:00 P.M. AND IS ALSO AVAILABLE FOR LIVE VIEWING AT HTTPS://ATTENDEE.GOTOWEBINAR.COM/REGISTER/5352661612070564879 AND ARCHIVED VIEWING ON THE CITY’S WEB SITE AT WWW.DIAMONDBARCA.GOV. CITY OF DIAMOND BAR CITY COUNCIL/SPECIAL PUBLIC FINANCING AUTHORITY AGENDA April 06, 2021 CALL TO ORDER: 6:30 p.m. PLEDGE OF ALLEGIANCE: Mayor ROLL CALL: Chou, Liu, Tye, Mayor Pro Tem Low, Mayor Lyons APPROVAL OF AGENDA: Mayor. 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 Proclamation Condemning Discrimination, Hate and Bigotry in All Forms 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: 3. PUBLIC COMMENTS: "Public Comments" is the time reserved on each regular meeting agenda to provide an opportunity for members of the public to directly address the Council on Consent Calendar items or other matters of interest not on the agenda that are within the subject matter jurisdiction of the Council. Although the City Council values your comments, pursuant to the Brown Act, members of the City Council or Staff may briefly respond to public comments if necessary, but no extended discussion and no action on such matters may take place. There is a five -minute maximum time limit when addressing the City Council. At this time, the teleconference moderator will ask callers one at a time to give their name and if there is an agenda item number they wish to speak on before providing their comment. If you wish to speak on a public hearing item or council consideration item, you will then be called upon to speak at that point in the agenda. APRIL 6, 2021 PAGE 2 4. CONSENT CALENDAR: All items listed on the Consent Calendar are considered by the City Council to be routine and will be acted on by a single motion unless a Council Member or member of the public request otherwise, in which case, the item will be removed for separate consideration. 4.1 CITY COUNCIL MINUTES OF THE MARCH 16, 2021 STUDY SESSION AND REGULAR MEETING. 4.1.a March 16, 2021 Study Session Minutes 4.1.b March 16, 2021 City Council Minutes Recommended Action: Approve the March 16, 2021 Study Session and Regular City Council meeting minutes. Requested by: City Clerk 4.2 CITY COUNCIL RECEIPT OF COMMISSION MINUTES. 4.2.a Parks and Recreation Commission Minutes of September 24, 2020 4.2.b Parks and Recreation Commission Minutes of January 28, 2021 4.2.c Planning Commission Minutes of February 9, 2021 Recommended Action: 1. Receive and file the Parks & Recreation Commission meeting minutes of September 24, 2020 and January 28, 2021; and 2. Receive and file the Planning Commission meeting minutes of February 9, 2021. Requested by: City Clerk 4.3 RATIFICATION OF CHECK REGISTER DATED MARCH 11, 2021 THROUGH MARCH 24, 2021 TOTALING $312,703.29. Recommended Action: Ratify the Check Register. Requested by: Finance Department 4.4 TREASURER'S STATEMENT Recommended Action: Approve the November 2020 Treasurer’s Statement. Requested by: Finance Department APRIL 6, 2021 PAGE 3 4.5 GENERAL PLAN STATUS REPORT FOR 2020 Recommended Action: Receive and file. Requested by: Community Development Department 4.6 SECOND AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT WITH LANCE, SOLL & LUNGHARD, LLP CPA'S FOR AUDIT SERVICES THROUGH THE COMPLETION AND AUDIT OF THE FINANCIAL REPORTS FOR FISCAL YEAR ENDING JUNE 30, 2025. Recommended Action: Approve, and authorize the Mayor to sign, the Second Amendment to the Consultant Services Agreement with Lance, Soll & Lunghard, LLP CPA's for auditing services. Requested by: City Manager 4.7 ESTABLISHMENT OF A DIAMOND BAR DEBT MANAGEMENT POLICY. Recommended Action: That the City Council adopt Resolution No. 2021 -11 approving the Diamond Bar Debt Management Policy as required by and in compliance with Government Code Section 8855(i). Requested by: City Manager 4.8 AGREEMENTS FOR FINANCIAL ADVISORY, AND BOND COUNSEL AND DISCLOSURE SERVICES RELATED TO REFUNDING THE DIAMOND BAR CENTER FIXED RATE LEASE REVENUE BONDS. Recommended Action: That the City Council: A. Approve, and Authorize the City Manager to sign the Professional Services Agreement with Fieldman Rolapp & Associates; and B. Approve, and Authorize the City Manager to sign the Engagement Letter with Stradling Yocca Carlson & Rauth. Requested by: City Manager APRIL 6, 2021 PAGE 4 RECESS TO THE SPECIAL PUBLIC FINANCING AUTHORITY MEETING: 1. CALL TO ORDER: 2. ROLL CALL: Authority Members Liu, Low, Lyons, Vice Chair Tye, Chair Chou 3. PUBLIC COMMENTS: "Public Comments" is the time reserved on each special meeting agenda to provide an opportunity for members of the public to directly address the Authority only on agenda items. Although the Authority values your comments, pursuant to the Brown Act, the Authority generally cannot take any action on items not listed on the posted agenda. There is a five-minute maximum time limit when addressing the Authority. 4. CONSENT CALENDAR: All items listed on the Consent Calendar are considered by the Authority to be routine and will be acted on by a single motion unless a Authority Member or member of the public request otherwise, in which case, the item will be removed for separate consideration. 4.1 APPROVAL OF PUBLIC FINANCING AUTHORITY MEETING MINUTES. Recommended Action: Approve the December 1, 2020 meeting minutes. Requested by: City Clerk 4.2 ESTABLISHING REGULAR MEETINGS OF THE DIAMOND BAR PUBLIC FINANCING AUTHORITY. Recommended Action: Adopt Resolution No. PFA 2021-01 establishing regular meetings of the Public Finance Authority. Requested by: City Manager 4.3 ESTABLISHMENT OF A DIAMOND BAR DEBT MANAGEMENT POLICY. Recommended Action: That the Public Financing Authority adopt Resolution No. 2021 -02 adopting by reference the Diamond Bar Debt Management Policy (City Council Policy 2021-21) as required by and in compliance with Government Code Section 8855(i). Requested by: City Manager APRIL 6, 2021 PAGE 5 5. PUBLIC HEARINGS: NONE. 6. AUTHORITY MEMBER COMMENTS: Items raised by individual Authority members are for Authority Discussion. Direction may be given at this meeting or the item may be sc heduled for action at a future meeting. 7. ADJOURN SPECIAL PUBLIC FINANCING AUTHORITY MEETING: RECONVENE CITY COUNCIL MEETING: 5. PUBLIC HEARINGS: NONE. 6. COUNCIL CONSIDERATION: 6.1 FORMATION OF LANDSCAPE ASSESSMENT DISTRICT NO. 41-2021 TO REPLACE EXISTING DISTRICT NO. 41. Recommended Action: A. Adopt Resolution No. 2021-12 initiating proceedings for the formation of a new landscape assessment district No. 41-2021 and designating SCI Consulting Group as the Engineer of Record; and B. Approve, and authorized the Mayor to sign, the First Amendment to the Consulting Services Agreement with SCI Consulting Group to provide the special assessment engineering and balloting services in the amount of $13,600. Requested by: Public Works Department 6.2 REVIEW OF DRAFT 2021-2029 HOUSING ELEMENT (PLANNING CASE NO. PL2021-004) Recommended Action: A. Receive staff report; B. Receive public comments; and C. Provide direction to staff regarding the Draft 2021 -2029 Housing Element. Requested by: Community Development Department 7. COUNCIL SUB-COMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS: 8. ADJOURNMENT: PP RR OO CC LL AA MM AA TT II OO NN ““CC OO NN DD EE MM NN II NN GG DD II SS CC RR II MM II NN AA TT II OO NN ,, HH AA TT EE AA NN DD BB II GG OO TT RR YY II NN AA LL LL FF OO RR MM SS ”” WWHHEERREEAASS,, the First Amendment to the Constitution established the United States as a country committed to the principles of tolerance and religious freedom, and the Fourteenth Amendment to the Constitution established equal protection of the laws as the heart of justice in the United States; and WWHHEERREEAASS,, adherence to these principles is vital to the progress of the American people and the diverse communities of the United States; and WHEREAS, discrimination, oppression, hate, bigotry, and racism threaten democracy, and have no place in our society. Persecution of any American is an assault on the rights and freedoms of all Americans; and WHEREAS, a number of groups have been exploited and persecuted with verbal attacks, incitement, and violence, including African Americans, Latinos, Native Americans, Asian Americans, Pacific Islanders, and other people of color, as well as Jews, Muslims, Hindus, Sikhs, other religious groups, the LGBTQ community, immigrants, and others; and WHEREAS, since the beginning of the coronavirus pandemic, Asian Americans have been forced to endure demeaning and disgusting acts of bigotry and hate, consisting of everything from verbal assaults to physical attacks, some even blaming Asian Americans for the spread of the coronavirus. This increase in violence and hate crimes has resulted in a rise in fear and instability within our community; and WHEREAS, all Americans have a stake in fighting every form of discrimination, hatred, and bigotry and the City of Diamond Bar supports and seeks to protect all of its residents no matter their ethnicity, race, faith, sexual orientation, or gender. NNOOWW,, TTHHEERREEFFOORREE,, BBEE IITT RREESSOOLLVVEEDD,, that the City of Diamond Bar City Council wholeheartedly rejects and condemns discrimination, hate and bigotry in all forms against anyone because of their race, religion, nationality, and gender, as this is contrary to the values of the United States; and BBEE IITT FFUURRTTHHEERR RREESSOOLLVVEEDD that the City of Diamond Bar City Council is proud to support and is committed to protecting all Diamond Bar residents, regardless of their ethnicity, race, religion, sexual orientation, or gender. We are committed to advancing equity and justice for all people and stand against those who preach hate and incite violence, and encourage all persons to live up to the transcendent principles of tolerance, religious freedom, and equal protection as embodied in the First and Fourteenth Amendments to the Constitution. April 6, 2021 Nancy A. Lyons Mayor Ruth M. Low Andrew Chou Mayor Pro Tem Council Member Stan Liu Steve Tye Council Member Council Member 1.1 Packet Pg. 8 Agenda #: 4.1 Meeting Date: April 6, 2021 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: CITY COUNCIL MINUTES OF THE MARCH 16, 2021 STUDY SESSION AND REGULAR MEETING. STRATEGIC GOAL: Open, Engaged & Responsive Government RECOMMENDATION: Approve the March 16, 2021 Study Session and Regular City Council meeting minutes. FINANCIAL IMPACT: None. BACKGROUND/DISCUSSION: Minutes have been prepared and are being presented for approval. PREPARED BY: REVIEWED BY: 4.1 Packet Pg. 9 Attachments: 1. 4.1.a March 16, 2021 Study Session Minutes 2. 4.1.b March 16, 2021 City Council Minutes 4.1 Packet Pg. 10 CITY OF DIAMOND BAR MINUTES OF THE CITY COUNCIL STUDY SESSION MARCH 16, 2021 STUDY SESSION: M/Lyons called the Study Session to order at 5:30 p.m. Mayor Lyons announced that consistent with COVID-19 regulations, all Council Members and staff participated via teleconference. There was no physical location for public attendance and the public was invited to join the meeting online or by phone at the numbers printed on the agenda. ROLL CALL: Council Members Andrew Chou, Stan Liu, Steve Tye Mayor Pro Tem Ruth Low, Mayor Nancy Lyons Staff participating telephonically: Dan Fox, City Manager; Dave DeBerry, City Attorney; Ryan McLean, Assistant City Manager; Anthony Santos, Assistant to the City Manager; Ryan Wright, Parks and Recreation Director; David Liu, Public Works Director; Dianna Honeywell, Director of Finance; Ken Desforges, Director of Information Services; Marsha Roa, Public Information Manager; Cecilia Arellano, Public Information Coordinator; Kristina Santana, City Clerk ► CONSIDERATION OF REFUNDING OPTIONS FOR THE DIAMOND BAR CENTER FIXED RATE BONDS. CM/Fox introduced Anna Sarabian, Principal, Fieldman Rolapp & Associates who provided a presentation and timeline for the refunding process. CM/Fox stated that no action is being asked of the Council; however, if there is consensus to move forward with the refunding, staff would proceed to prepare the necessary financing documents through the Public Finance Authority for final approval and implementation. Ms. Sarabian explained to C/Tye that the City’s implied general bond obligation rating is AAA, the highest possible rating. C/Chou asked if the new bond would have the same callable date or would the new bond be non-callable. Ms. Sarabian responded that the City has about 12 years remaining on the note and typically, lenders require 10 years of call protection so the basic callable date on the bonds will be required . Fieldman Rolapp will evaluate whether a shorter call will require additional penalties and what it means in terms of savings. The minimum will be a 10 -year par call. M/Lyons asked about loan fees and Ms. Sarabian said that the analysis included a conservative estimate of $255,000 in fees in the net value refunding savings of $1.33 million. MPT/Low asked where the estimated $255,000 in fees fell in the marketplace and Ms. Sarabian said she believed that $255,000 was a conservative realistic estimate with the average falling slightly south of that estimate. For the most 4.1.a Packet Pg. 11 MARCH 16, 2021 PAGE 2 CC STUDY SESSION part, the line items are generally standard, with the rating agency fee being driven by the size of the bonds (par) and that when the option is exercised, Diamond Bar will be on par with all other jurisdictions. C/Liu asked if at a certain point the City would be able to lock in the rate and Ms. Sarabian responded that if the City decided to pursue the refunding, Fieldman Rolapp will work with legal counsel to prepare the necessary financing and legal documents which will be presented to the rating agency to obtain the rating. Once the information is brought back to Council for approval of refunding and documentation, the underwriter will be able to free-market the bonds and when completed, the rate will be locked in with closing to occur about two weeks after pricing. Ms. Sarabian responded to C/Chou that Fieldman Rolapp is a registered Municipal Advisor and has fiduciary duty to the City only. Fieldman Rolapp is a non-broker dealer and does not represent the underwriters. C/Liu asked if there will be one or multiple bids for the refunding and Ms. Sarabian explained that there are two types of sales. One is negotiated with the underwriter who will pursue bonds at the price they offer and Fieldman Rolapp working with the City to ensure the best price reflected by the price of the market positions. Once the bonds are in place, the lender owns the bonds and sells them to retail and institutional investors with no risk to the City. A second type of sale is a “competitive” sale. In that environment competitive sales are very often used for general obligation bond credits and have been used for lease revenue bonds. Given this is a refunding and given the current environment, Fieldman Rolapp believes a negotiated sale would make better sense fo r the City. C/Liu asked if the Council would be voting on the negotiated rate or would it be determined after the Council approved the refunding. Ms. Sarabian explained that the City could determine the rate if it chose a private placement by reaching out to several banks such as Bank of America, Western Alliance or Compass Bank and in this case, the City would be provided one rate for each year left in the term. Bottom line is that Diamond Bar will get a much better result selling these bonds publicly. Public Comments: None Following discussion, Council concurred to proceed with the refunding. C/Tye expressed that in 2002 the City Council decided to float a bond to build the Diamond Bar Center which was a great decision that has inured to the benefit of the City and its residents. In 2011 the Council decided to refund the variable rate to a fixed rate to save money, and the City has an opportunity to save another $1.3 million dollars and not extend the life of the bonds which makes complete sense to him. 4.1.a Packet Pg. 12 MARCH 16, 2021 PAGE 3 CC STUDY SESSION MPT/Low, C/Liu, C/Chou and M/Lyons concurred with C/Tye and Council concurred to move forward with the refunding process as recommended. ADJOURNMENT: With no further business to come before the City Council, M/Lyons recessed the Study Session at 6:11 p.m. to the Regular Meeting. Respectfully submitted: __________________________ Kristina Santana, City Clerk The foregoing minutes are hereby approved this 6th day of April, 2021. __________________________ Nancy Lyons, Mayor 4.1.a Packet Pg. 13 CITY OF DIAMOND BAR MINUTES OF THE CITY COUNCIL REGULAR MEETING MARCH 16, 2021 STUDY SESSION: 5:30 p.m. ► Refunding Options for the Diamond Bar Center Fixed Rate Bonds. Public Comments: None Study Session adjourned to the Regular City Council Meeting at 6:11 p.m. CALL TO ORDER: Mayor Lyons called the Regular City Council meeting to order at 6:30 p.m. Mayor Lyons announced that consistent with COVID-19 regulations, all Council Members and staff participated via teleconference and there was no physical location for public attendance. The Public was invited to join the meeting online or by phone at the numbers printed on the agenda. PLEDGE OF ALLEGIANCE: M/Lyons led the Pledge of Allegiance. ROLL CALL: Council Members Andrew Chou, Stan Liu, Steve Tye, Mayor Pro Tem Ruth Low, Mayor Nancy Lyons Staff participating telephonically: Dan Fox, City Manager; Dave DeBerry, City Attorney; Ryan McLean, Assistant City Manager; Anthony Santos, Assistant to the City Manager; Amy Haug, Human Resources and Risk Manager; Ryan Wright, Parks and Recreation Director; David Liu, Public Works Director; Hal Ghafari, Public Works Manager/Assistant City Engineer; Anthony Jordan, Parks and Maintenance Superintendent; Greg Gubman, Community Development Director; Dianna Honeywell, Director of Finance; Marsha Roa, Public Information Manager; Cecilia Arellano, Public Information Coordinator; Kristina Santana, City Clerk Also Present: Lieutenant Steven Tousey, LA County Sheriff’s Deputy; Leticia Pacillas, Los Angeles County Fire Department Community Services Liaison; Jim Robinson, Los Angeles County Fire Department Assistant Fire Chief APPROVAL OF AGENDA: As submitted. 1. CITY MANAGER REPORTS AND RECOMMENDATIONS: CM/Fox announced that FD/Honeywell, who has been with the City for almost 10 years, would be leaving Diamond Bar end of day Friday, April 2 nd to become the new Finance Director for the City of Yorba Linda. 4.1.b Packet Pg. 14 MARCH 16, 2021 PAGE 2 CITY COUNCIL 2. PUBLIC COMMENTS: None Offered. 3. CONSENT CALENDAR: C/Tye moved, MPT/Low seconded, to approve the Consent Calendar as presented. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chou, Liu, Tye, MPT/Low, M/Lyons NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 3.1 APPROVED CITY COUNCIL MINUTES FOR THE MARCH 2, 2021 REGULAR MEETING 3.2 RATIFIED CHECK REGISTER DATED FEBRUARY 25, 2021 THROUGH MARCH 10, 2021 TOTALING $1,051,629.61. 3.3 APPROVED TREASURER’S STATEMENT FOR THE MONTH OF OCTOBER 2020. 3.4 APPROVED THE 2020 HOUSING ELEMENT ANNUAL PROGRESS REPORT FOR FILING WITH THE STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD) AND THE GOVERNOR’S OFFICE OF PLANNING AND RESEARCH (OPR). 3.5 PROCLAIMED MARCH AS AMERICAN RED CROSS MONTH. 4. PUBLIC HEARINGS: None. 5. COUNCIL CONSIDERATION: 5.1 INTENT TO DISSOLVE LANDSCAPE ASSESSMENT DISTRICT NO. 41. C/Liu recused himself from consideration of Item 5.1 because he lives in District 41, and did not participate in the discussion. PWM/Ghafari presented the staff report. M/Lyons opened Item 5.1 for public comment. CC/Santana read the following emails into the record: John Catanzaro expressed his dismay about how this item will negatively affect residents and suggested the City seek grant funds to continue servicing the area and help defray costs during the pandemic. Linda and Dwight Baumann complained about the lack of information and reduced maintenance of the District. Joseph Lo Bue opposed the dissolution of District No’s 39 and 41 and 4.1.b Packet Pg. 15 MARCH 16, 2021 PAGE 3 CITY COUNCIL favored an increase in the assessment fees. Joyce Mar said that while she voted in favor to increase assessments to bring revenues in line with ongoing maintenance costs, the measure failed and she would like for staff to pursue an alternative to dissolving District No. 41 while reducing costs such as, reducing frequency of landscape services to twice a month or less often and reducing the duration and frequency of irrigation to once a week. James Bagwell expressed his displeasure about the rush to dissolve District No. 41 instead of coming to consensus on an amicable and well thought out plan. Mindy Farabee was concerned about the City’s intent to dissolve District No. 41 with very little warning, information and input from the residents , and requested an independent report on the health and quality of the current landscape provided. Buck Bullock was opposed to dissolving the district but supported an increase in assessment fees and was concerned about why the City Council waited so long to adjust the assessment fees to keep up with costs for maintaining District No’s 39 and 41. Alex Stewart felt that the City did not adequately address costs over the years and asking for an increase of over 100 percent at one time was ill advised, leaving HOA’s with a massive undertaking to ta ke over the duties required to properly manage the landscaping requirements. He proposed the Council consider a moratorium while studying the situation for possible solutions as a prelude to reintroduction of Proposition 218. Don Pearce asked for clarification of the budget item for LLAD No. 41 for fiscal year 2019-2020. Tony Lee asked if dissolving the districts meant that developers would have access to develop the open space and whether if prior to budget deficits, there were surpluses. He proposed that property owners and the City work together to maintain and improve these areas. Alan Karlin felt the Council should listen to the residents and work with them to resolve this issue. MPT/Low asked staff to recap the timeline for consideration of deficits for these districts. PWD/Liu explained that on an annual basis, the Council has the details of each of the three landscape assessment districts (No’s 38, 39 and 41). The discussion about General Fund subsidies began in 2005 and since that time, Council has looked at the expenditures/costs of operating and maintaining these districts while attempting to work within the incoming revenues. When Diamond Bar became a City in 1989 and before Prop 218, the City had the ability to annually adjust the 4.1.b Packet Pg. 16 MARCH 16, 2021 PAGE 4 CITY COUNCIL assessments, collect the revenues and make sure they were properly allocated and spent within the respective districts. The passage of Prop 218 tied the City’s hands so that unless the City was able to get the voters to support increases, there were no other options but to continue to seek other financial resources. As a result, the City has been subsidizing each district accordingly, based on the annual landscaping efforts. MPT/Low asked if there had been an accumulation of surplus that was used to fund maintenance up to this point and PWD/Liu explained that, the City is obligated to make sure that revenues collected are properly allocated and spent within each district. MPT/Low asked for confirmation that during the past 10 years, any reserves collected during the early years would have been long gone because otherwise, General Fund monies would not have b een used. PWD/Liu said that MPT/Low’s statement was correct. MPT/Low asked how much the City has contributed from the General Fund during the past five years in order to maintain District No. 41. PWD/Liu responded that in fiscal year 2019/2020 the am ount was $265,000. Over the years the amount has varied depending on the adopted maintenance effort and adjusted services including elimination of certain types of maintenance work, none of which are safety related. PWD/Liu further stated that in 2019 when Council initiated the process for the Prop 218 election, staff began its outreach to property owners and conducted noticed community meetings to answer questions and provide information to the property owners as well as, on the City’s website in order to meet the August 15th deadline to make adjustments to the annual assessments in addition to having the districts consolidated for the tax roll. With the passage of Prop 218 it was made clear that if a public agency wanted to consider any increases in assessments, it would require a simple majority of approval by the property owners. In District No. 41, Prop 218 was defeated by a 75 percent “no” votes. MPT/Low asked for comment on a speakers question about whether a developer could develop open spaces that are currently mapped in LLAD No. 41. CM/Fox responded that it would not be possible because the property is owned by the homeowners association as pa rt of the development that currently exists and they exist as non-developable lots. To be clear, none of the property being discussed is publicly or City owned, it is all privately owned property and what would normally be the responsibility of a homeowners association or individual homeowner for normal maintenance. Mr. Pearce also referred to a 2019 report and budget which in fact, was the Prop 218 budget that was proposed to increase the assessments for that district which was overwhelmingly rejected by the voters. 4.1.b Packet Pg. 17 MARCH 16, 2021 PAGE 5 CITY COUNCIL MPT/Low said that because the maintenance area belongs to the HOA and property owners, the City has no jurisdiction to get the homeowners to do anything. CM/Fox stated that the property lines are drawn and the individual property owners/HOA would be held accountable for maintaining their property in conformance with the City’s Property Maintenance Standards. C/Chou asked for response to public comments regarding concerns about service levels and in what condition the City would be returning the property to the homeowners. PMS/Jordan responded that with respect to current conditions, the City’s priority was and continues to be, that anything safety related such as fire breaks and fire brushing, including hand work behind individual properties to clear brush and tractor work in larger open space areas as well as, goat work to perform fuel reduction continue to be maintained on an annual basis. Currently, there are areas that are better served. Staff has attempted to maintain all areas as consistently as possible, but unfortunately, funding levels experienced over the years have not been sufficient for the City to maintain, replenish, and renew several of the landscaping areas. As a result, there are slopes that are bare and others that have gone from maintained slopes to firebreak areas where water has been turned off. While those areas are not ignored, staff modifies the types of maintenance performed by converting them from a maintained slope to a firebreak, as previously mentioned. Staff does the best with what is available and prioritizes slopes with more visibility such as those along Pathfinder Road and Peaceful Hills. C/Chou asked if moving forward, the City expects the HOA and/or homeowners to install sprinkler systems in the hillsides. PMS/Jordan responded that the current irrigation systems would remain in place and intact so that the HOA/property owners would not incur the expense of installing new irrigation systems. In some areas, system maintenance was halted so there may be some expense to rehab and repair some of the systems. As a whole, the majority of the irrigation systems will remain intact and be serviceable. If the homeowners decide to collectively maintain some of the slopes they commonly share, there are s ystems in place that would be adequate to fulfill all of the irrigation needs. C/Chou asked if this were put to a vote once again, would it mean that the homeowners would be responsible for everything or could the City build in a tiered system to help the homeowners absorb the increase over a number of years. CM/Fox responded that there may be an opportunity to phase certain things in or out, but the problem is that every year the City would be subject to a Prop 218 vote to establish new assessments whi ch becomes very challenging to predict and implement. CA/DeBerry responded to C/Chou that if the assessment is not being increased it is a different type of majority protest , which is that a majority 4.1.b Packet Pg. 18 MARCH 16, 2021 PAGE 6 CITY COUNCIL of property owners in the district would have to send in ballots disapproving of the assessment and that has never happened to the City when it is maintaining the assessment at its present level. The other majority protest procedure applies when cities are attempting to increase the assessment and in that case, the City receives ballots. If the majority of the ballots received are “no” the assessment increase cannot be imposed. In the past, as a backstop to assessments not being approved, the City has retained the current assessments. CA/DeBerry said he is not sure there is a procedure for weaning the property owners off of the districts which would mean the City would continue to subsidize the maintenance of the private property with General Fund monies. There have been prior efforts to gauge the community’s interest in increasing the assessment, which never went to the extent of putting it to a vote as was done in 2019 because in prior years there did not seem to be an appetite within the district for increasing the assessments and the City’s response until 2019 was to decrease the maintenance rather than attempt to increase assessments. C/Chou said he was asking if there was a way to gradually increase the landscaping assessment over the next three to five years and according to CA/DeBerry it would require an approval vote every year. CA/DeBerry responded that C/Chou was absolutely correct. It is possible that through one vote there could be a tiered approach over a period of years. C/Chou felt that flexibility in structuring the increase might be helpful and more acceptable to the property owners/HOA. C/Tye said that a speaker asked what Diamond Bar would give up if it dissolves LLAD No’s 41 and 39 and his response is that the City would give up its fiscal burden of an LLAD that was not keeping up with costs related to it. Another speaker said that the City waited 30 years to implement the increase. C/Tye responded that as a policy decision of other Councils that decision was driven by what PWD/Liu and CA/DeBerry indicated, that at some point the assessment was lowered and at other points it was raised incrementally until it reached the cap. At this point in time, the City cannot go beyond that cap without an affirmative vote of Prop 218. Prop 218 does not necessarily handicap the City a s much as provide an opportunity to reach out to the public to let them know the situation and ask how they want it handled. And when that vote went out everyone was told what they were paying and what it would be if they voted “yes” and this is what it will be if they vote “no” and the vote was overwhelmingly “no”. Having said that, it sounds to him like residents were unsure or confused about the information that was shared and what a “yes” vote meant on a Prop 218 vote. He said he found it interesting that everyone who spoke on this matter tonight or submitted an email indicated that they voted affirmatively for the increase. C/Tye asked for confirmation that a subsidy of $265,000 was just for LLAD 4.1.b Packet Pg. 19 MARCH 16, 2021 PAGE 7 CITY COUNCIL No. 41. PWD/Liu respondedthat he previously misspoke. Specifically, for the General Fund subsidy in the current Fiscal Year the subsidy is about $143,000 for LLAD No. 41 only and the total of $265,000 includes both districts. C/Tye responded to a speaker that this is not an accounting mess and nothing has been hidden. This is about making a decision year by year to decide whether the City shall continue to subsidize the LLADs and to be clear, no surplus has ever been put to other uses. C/Tye said he heard a couple of ideas that make sense to him. Someone said there should be a one-year moratorium on any action so the consequences could be thoroughly vetted. Another speaker said he would like to see everyone work together to work something out and C/Tye said he believes that was the best path forward because folks now better understand the situation. There are about 1800 residents in a community of 60,000 who are being subsidized to the tune of hundreds of thousands of dollars, a situation that needs to be rectified. This Council (prior to C/Liu’s service) made a decision with the Prop 218 vote to go lump sum because if the increases were tiered over a period of time, the City would continue to subsidize both districts well into the future. It is now 2021 and this Council finds itself in a position of having to find a solution for having to subsidize these LLAD’s over a period of many years, which is a major subsidy in today’s budget and has been such over the past several years. M/Lyons said she greatly appreciates the discussion among he r colleagues and issues brought to the Council by folks who spoke on this item. M/Lyons suggested that the Council move forward with the resolution of intent to dissolve the districts and at the same time, allow the HOA’s the option of putting together a plan for why their homeowners should vote for this increase, pass the resolution and have the election to see if they wanted to vote for the increase to allow the City to continue its maintenance program for the districts. CA/DeBerry said there could be a dual process moving forward wherein the Council would adopt the Resolution of Intent to Dissolve and move forward with the dissolution making it effective only if the property owners of LLAD No’s 41 and 39 again voted against an increase in assessment s. CA/DeBerry said this situation has occurred in a coupl e of jurisdictions he represented. In both cases, the voters turned down the increase in assessments and the city had to reduce the maintenance the next year to stay within budget and informed the property owners they would have to dissolve the LLAD’s because they could not maintain them. In this case the HOA’s gathered together for meetings with the property owners and assured the City Council they could get the increases. A Prop 218 hearing was held on the increased assessments and the property owners 4.1.b Packet Pg. 20 MARCH 16, 2021 PAGE 8 CITY COUNCIL approved it. CM/Fox outlined the process for moving forward with the dual plan timeline and related costs. C/Tye felt it was time for everyone to work together which means the City might be subsidizing the LLAD’s for another year to get it done right. It is important that the Council respect the large number of homeowners who have spoken on this issue this evening and i t behooves Council to move forward and get this done as comfortably as possible for all parties. M/Lyons felt the Resolution should be adopted and the process should move forward to keep the momentum going to eliminate the subsidy from the budget. In the meantime, if the residents are willing to approve the increases and continue having the City perform landscape maintenance they can make that decision and vote “yes” on Prop 218 and continue paying the assessments with their property taxes. CM/Fox said he agreed with M/Lyons that the process forward as proposed to not lose the opportunity to get the new assessments on next year’s tax rolls. MPT/Low moved, C/Chou seconded, to adopt Resolution No. 2021-09 declaring the City’s Intention to Dissolve Landscape Assessment District No. 41, direct staff to advertise the Public Hearing before the City Council at its May 4, 2021 regular meeting and direct staff to work with the HOAs to prepare a new Prop 218 ballot measure by July 2021. AYES: COUNCIL MEMBERS: Chou, Tye, MPT/Low, M/Lyons NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Liu Councilmember Liu returned to the meeting. 5.2 INTENT TO DISSOLVE LANDSCAPE ASSESSMENT DISTRICT NO. 39. C/Chou and MPT/Low recused themselves from consideration of Item 5.2 because they live in District 39, and did not participate in the discussion. PWM/Ghafari presented the staff report. M/Lyons asked for Public Comment on Item 5.2. Robin Smith said that landscape costs are soaring due to conventional landscape practices and shorter-lived plantings of invasive exotic species requiring irrigation rather than native conservatio nal landscape practices. She suggested the City consider cost-effective natural habitat and 4.1.b Packet Pg. 21 MARCH 16, 2021 PAGE 9 CITY COUNCIL California native plants for open space areas and that Council establish a subcommittee of Council members and residents to seek education about the opportunity to move forward with restoring open spaces, brush areas and slope areas with improved native slope materials. M/Lyons closed Public Comments. C/Tye believed the Council should move forward with approval of the Resolution as it did for District No. 41 to make it as accommodating as possible to work something out. CM/Fox responded to M/Lyons that there are no Homeowner Associations within District No. 39 and what staff has consistently heard is whether the City will continue to maintain the private mini-parks, trails and other City- owned properties and the answer to that question is “yes”. C/Liu asked for the voter turnout numbers for District No. 39 on Prop 218 and PWD/Liu responded that within District No. 39 there are approximately 1,250 parcels and a total of 481 ballots were validated in the Prop 218 vote. Of the 481 ballots cast, the count was 103 “yes” and 378 “no”. C/Liu asked if staff had collaborated with homeowners to bring the maintenance costs down and what would the roles be of the City and homeowners before and after the solution. CM/Fox responded that as with the other LLAD’s, staff has worked to reduce the amount of subsidies through lower levels of service before the Proposition 218 increase vote, which was overwhelmingly rejected which was substantially less than the District No. 41 subsidy. CM/Fox reiterated that upon dissolving the LLAD’s, all properties will be returned to the homeowners as private property and the City will continue to maintain the public pro perty which includes the five mini-parks, trails and the large open space area adjacent to the Diamond Bar Center. M/Lyons said she did not believe it was necessary to take a dual track approach for District No. 39 and C/Tye said he agreed. C/Tye moved, C/Liu seconded, to Adopt Resolution No. 2021-10 declaring the City’s Intention to Dissolve Landscape Assessment District No. 39 and direct staff to advertise the Public Hearing bef ore the City Council at its May 4, 2021 Regular Meeting. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Liu, Tye, M/Lyons NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Chou, MPT/Low C/Chou and MPT/Low returned to the meeting. 4.1.b Packet Pg. 22 MARCH 16, 2021 PAGE 10 CITY COUNCIL 5.3 PUBLIC SAFETY ANNUAL REPORT. ACM/McLean presented the staff report which included information related to the City’s Animal Control program, the Diamond Bar Fire Department Team, the Diamond Bar Law Enforcement Team, Statistics an d Trends for each department and an overview of ongoing public engagemen t efforts which is available on the City’s website. C/Chou said he was very proud of the work done and the way in which the City Council, staff and public came together to provide these services and keep the crime statistics low. C/Liu said he appreciated staff’s work on Public Safety and community programs and the dedication of the 2400 member Volunteer Patrol. He asked what more could be done to assist the Volunteer Patrol and asked for an explanation of the increase in non-stranger rape case. ACM/McLean responded that each year the City Council approves funding to assist the Volunteer Patrol with equipment and promotion of the program. With respect to rape cases in Diamond Bar, the alleged perpetrator of the incident was someone that was known to and associated with the victim. C/Tye said that in his opinion, the Inland Valley Humane Society does a terrific job, the fire department provides great support and noted th e reduction in numbers due to COVID. Overall, Diamond Bar is a great place to live and this Council stays on top of the Sheriff’s Department to make sure they are providing the service residents expect and that they are focusing on specific areas as called out. Thanks to ACM/McLean for a great report. MPT/Low thanked ACM/McLean for a great report and said she was very proud of the City’s law enforcement team, animal control, fire department and the LASD team who assist the City Council with its goal to provide for the safety of the community, borne out by the empiric al numbers. She asked if the SR57/60 collision numbers included collisions that occur on the freeway or collisions that occur on the City’s streets and ACM/McLean responded that they are collisions that occur on City streets and information about freeway collisions come from the California State Patrol. MPT/Low asked if this report was posted on the City’s website and ACM/McLean responded that it will be posted on the website immediately after the Council receives and files the report. MPT/Low asked if news blast information is available to the public and ACM/McLean responded that the information is available through the Sheriff’s Department. The City's process for distribution is to repost the information posted by the Sheriff’s Department, on the City’s website and social media, as well as on the monthly updates on open Dashboard 4.1.b Packet Pg. 23 MARCH 16, 2021 PAGE 11 CITY COUNCIL In addition, members of the public can always call City Hall for information. M/Lyons said it was a terrific report and such a pleasure to live in a safe City. In addition to missing the Volunteer Patrol dinner this year, there was no Public Safety dinner and she hopes by this fall the Volunteer Patrol can be recognized for their accomplishments. The Council moved to receive and file the Public Safety A nnual Report by consensus 6. COUNCIL SUBCOMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS: C/Chou spoke about the LLAD’s, the COVID shutdown announced a ye ar ago, and students returning to school. He thanked staff for their wor k during a very difficult year and said he was anxious for a return to business as usual. C/Liu announced the opening of the elementary schools on April 19 th, 7th and 8th grade on April 26th and the yet unscheduled opening of the high schools with the option for students to continue distance learning at home. He thanked staff for the detailed presentations, his colleagues for the discussions and the community for continuing to provide a safe environment during COVID. He thanked the public and law enforcement for the discussion regarding catalytic converter thefts which impacted many residents and thanked M/Lyons for attending and listening to residents’ concerns regarding the dissolution of the landscape districts. He thanked FD/Honeywell for her 10 years of amazing service to the City and wished her the best, and thanked PRD/Wright and his staff for creating the 32 nd Diamond Bar Birthday Windmill Hunt for the month of April. Please enjoy and celebrate Easter safely. C/Tye said it was great hearing from Dr. Bob Taylor, Superintendent, Walnut Valley Unified School District and two of his principals during the recent Rotary meeting about the process for reopening of schools. He congratulated FD/Honeywell, thanked her for her imprint on Diamond Bar finances and for her imprint on the Diamond Bar Finance Department which has been transformed since she joined the Diamond Bar family, and wished her Godspeed in future ventures as she heads to Yorba Linda. MPT/Low echoed C/Tye’s comments regarding FD/Honeywell who has helped Diamond Bar with initiation of so many good policies and procedures as well as, a total upgrade of the finance system, balanced budgets and budget presentations. She thanked ACM/McLean for his report and the Volunteer Patrol for the great work on behalf of the community and residents who participated in tonight’s meeting. Happy Birthday and best wishes for a wonderful year to M/Lyons. M/Lyons announced that yesterday she nominated C/Liu to the Contract Cities Los Angeles County Liability Trust Fund Committee who, with his business 4.1.b Packet Pg. 24 MARCH 16, 2021 PAGE 12 CITY COUNCIL background, she felt would make a great addition to the group and hopes he gets the votes to serve. Before the Council meets agai n, some will be celebrating Passover and some will be celebrating Easter, all of whom she wished a joyous celebration and happy holiday. FD/Honeywell is a hard worker who has done a great job with the City’s investment portfolio and her audits are superb, but most importantly, she is a very patient person who answers all City Council questions openly and thoroughly. On a personal note, M/Lyons said she appreciates the great help she has received from FD/Honeywell and that Yorba Linda is very lucky to have her join their staff. Congratulations to FD/Honeywell. ADJOURNMENT: With no further business to conduct, M/Lyons adjourned the Regular City Council Meeting at 8:59 p.m. in honor of FD/Honeywell. Respectfully submitted: __________________________ Kristina Santana, City Clerk The foregoing minutes are hereby approved this 16th day of March, 2021. __________________________ Nancy Lyons, Mayor 4.1.b Packet Pg. 25 Agenda #: 4.2 Meeting Date: April 6, 2021 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: CITY COUNCIL RECEIPT OF COMMISSION MINUTES. STRATEGIC GOAL: Open, Engaged & Responsive Government RECOMMENDATION: 1. Receive and file the Parks & Recreation Commission meeting minutes of September 24, 2020 and January 28, 2021; and 2. Receive and file the Planning Commission meeting minutes of February 9, 2021. FINANCIAL IMPACT: None. BACKGROUND/DISCUSSION: It is the practice of the City of Diamond Bar to provide the City Council with approved Commission meeting minutes. The attached minutes have been approved and are being transmitted to the Council for your information. PREPARED BY: 4.2 Packet Pg. 26 REVIEWED BY: Attachments: 1. 4.2.a Parks and Recreation Commission Minutes of September 24, 2020 2. 4.2.b Parks and Recreation Commission Minutes of January 28, 2021 3. 4.2.c Planning Commission Minutes of February 9, 2021 4.2 Packet Pg. 27 4.2.a Packet Pg. 28 4.2.a Packet Pg. 29 4.2.a Packet Pg. 30 4.2.a Packet Pg. 31 4.2.b Packet Pg. 32 4.2.b Packet Pg. 33 4.2.b Packet Pg. 34 4.2.b Packet Pg. 35 4.2.c Packet Pg. 36 4.2.c Packet Pg. 37 4.2.c Packet Pg. 38 4.2.c Packet Pg. 39 4.2.c Packet Pg. 40 4.2.c Packet Pg. 41 4.2.c Packet Pg. 42 Agenda #: 4.3 Meeting Date: April 6, 2021 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: RATIFICATION OF CHECK REGISTER DATED MARCH 11, 2021 THROUGH MARCH 24, 2021 TOTALING $312,703.29. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: Ratify the Check Register. FINANCIAL IMPACT: Expenditure of $312,703.29. BACKGROUND/DISCUSSION: The City has established the policy of issuing accounts payable checks on a weekly basis with City Council ratification at the next scheduled City Council Meeting. The attached check register containing checks dated March 11, 2021 through March 24, 2021 totaling $312,703.29 is being presented for ratification. All payments have been made in compliance with the City’s purchasing policies an d procedures, and have been reviewed and approved by the appropriate departmental staff . The attached Affidavit affirms that the check register has been audited and deemed accurate by the Finance Director. PREPARED BY: 4.3 Packet Pg. 43 REVIEWED BY: Attachments: 1. 4.3.a Check Register Affidavit 4-6-2021 2. 4.3.b Check Register 4-6-2021 4.3 Packet Pg. 44 4.3.a Packet Pg. 45 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 1447 3/18/2021 VANTAGEPOINT TRNSFR AGNTS- 303248 DEF COMP CONTRIBUTIONS/LOAN PYMTS 03/19/2021 239 21109 $100.15 3/18/2021 VANTAGEPOINT TRNSFR AGNTS- 303248 DEF COMP CONTRIBUTIONS/LOAN PYMTS 03/19/2021 241 21109 $100.15 3/18/2021 VANTAGEPOINT TRNSFR AGNTS- 303248 DEF COMP CONTRIBUTIONS/LOAN PYMTS 03/19/2021 201 21109 $127.51 3/18/2021 VANTAGEPOINT TRNSFR AGNTS- 303248 DEF COMP CONTRIBUTIONS/LOAN PYMTS 03/19/2021 238 21109 $200.30 3/18/2021 VANTAGEPOINT TRNSFR AGNTS- 303248 DEF COMP CONTRIBUTIONS/LOAN PYMTS 03/19/2021 250 21109 $241.93 3/18/2021 VANTAGEPOINT TRNSFR AGNTS- 303248 DEF COMP CONTRIBUTIONS/LOAN PYMTS 03/19/2021 207 21109 $405.13 3/18/2021 VANTAGEPOINT TRNSFR AGNTS- 303248 DEF COMP CONTRIBUTIONS/LOAN PYMTS 03/19/2021 206 21109 $477.30 3/18/2021 VANTAGEPOINT TRNSFR AGNTS- 303248 DEF COMP CONTRIBUTIONS/LOAN PYMTS 03/19/2021 100 21109 $12,534.74 CHECK TOTAL $14,187.21 1448 3/18/2021 CALPERS PENSION CONTRIBUTION 2/27/21- 3/12/21 MISC 106 21110 $41.12 3/18/2021 CALPERS PENSION CONTRIBUTION 2/27/21- 3/12/21 MISC 239 21110 $75.33 3/18/2021 CALPERS PENSION CONTRIBUTION 2/27/21- 3/12/21 MISC 241 21110 $75.33 3/18/2021 CALPERS PENSION CONTRIBUTION 2/27/21- 3/12/21 MISC 238 21110 $150.66 3/18/2021 CALPERS PENSION CONTRIBUTION 2/27/21- 3/12/21 MISC 201 21110 $428.95 3/18/2021 CALPERS PENSION CONTRIBUTION 2/27/21- 3/12/21 MISC 207 21110 $504.71 3/18/2021 CALPERS PENSION CONTRIBUTION 2/27/21- 3/12/21 MISC 206 21110 $560.11 3/18/2021 CALPERS PENSION CONTRIBUTION 2/27/21- 3/12/21 MISC 250 21110 $999.02 3/18/2021 CALPERS PENSION CONTRIBUTION 2/27/21- 3/12/21 MISC 100 21110 $33,579.10 CHECK TOTAL $36,414.33 1449 3/24/2021 TENNIS ANYONE INC TENNIS INSTRUCTION 100520 55320 $1,346.03 4.3.b Packet Pg. 46 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $1,346.03 1450 3/19/2021 CALPERS PENSION CONTRIBUTION 03/01/21- 03/31/21 CC 100 21110 $462.55 CHECK TOTAL $462.55 1451 3/19/2021 TASC FLEX SPENDING MEDICAL & CHILDCARE 03/19/2021 207 21118 $11.90 3/19/2021 TASC FLEX SPENDING MEDICAL & CHILDCARE 03/19/2021 250 21118 $25.57 3/19/2021 TASC FLEX SPENDING MEDICAL & CHILDCARE 03/19/2021 206 21118 $29.21 3/19/2021 TASC FLEX SPENDING MEDICAL & CHILDCARE 03/19/2021 100 21118 $1,303.59 CHECK TOTAL $1,370.27 1452 3/24/2021 AIRGAS INC ARGON & HELIUM 100630 51200 $7.22 3/24/2021 AIRGAS INC ARGON & HELIUM 100520 51200 $84.00 CHECK TOTAL $91.22 1453 3/24/2021 ALLIANT INSURANCE SERVICES INC INSURANCE FOR PAPER SHREDDING EVENTS 250170 57220 $321.00 CHECK TOTAL $321.00 1454 3/24/2021 ANDREW WONG T&T COMMISSION STIPEND - JUL,SEP,NOV 2020 100610 52525 $135.00 CHECK TOTAL $135.00 1455 3/24/2021 JOHN E BISHOP INSTURCTOR PAYMENT W/S 2021 100520 55320 $120.00 CHECK TOTAL $120.00 1456 3/24/2021 BULLSEYE TELECOM INC ANALOG PHONE LINES/FAX & EMERGENCY 2/2021 100230 52200 $1,628.89 CHECK TOTAL $1,628.89 1457 3/24/2021 CALIFORNIA BUILDING STANDARDS COMMISSION BSAS FEES JUL-SEP'20 100 20604 ($198.54) 3/24/2021 CALIFORNIA BUILDING STANDARDS COMMISSION BSAS FEES JUL-SEP'20 100 20604 $508.17 CHECK TOTAL $309.63 1458 3/24/2021 CITY CLERKS ASSOC OF CALIFORNIA CONFERENCE REGISTRATION 100130 52415 $125.00 CHECK TOTAL $125.00 4.3.b Packet Pg. 47 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 1459 3/24/2021 CITY OF WALNUT NANCY STOOPS SHARED AGREEMENT CITY OF WALNUT 2021 280310 54900 $4,900.00 CHECK TOTAL $4,900.00 1460 3/24/2021 CNC PRINTWERKS CITY LOGO WINDOW ENVELOPES 100130 52110 $650.43 CHECK TOTAL $650.43 1461 3/24/2021 COLLEY AUTO CARS INC VEHICLE MAINTENANCE - ROAD MAINTENANCE 502655 52312 $247.40 CHECK TOTAL $247.40 1462 3/24/2021 CSGPR ABC PUBLIC RELATIONS REC BUNNY BOX AD 100520 52160 $500.00 CHECK TOTAL $500.00 1463 3/24/2021 CYNTHIA T QUAN T&T COMMISSION STIPEND JUL,SEPT,NOV 2020 100610 52525 $135.00 CHECK TOTAL $135.00 1464 3/24/2021 DAPEER ROSENBLIT & LITVAK LLP CITY PROSECUTOR - CODE ENFORCEMENT-JANUARY 2021 100120 54024 $2,633.10 CHECK TOTAL $2,633.10 1465 3/24/2021 CAROL A DENNIS MINUTE SECRETARY FOR T&T COMMISSION - JAN 2021 100610 54900 $100.00 3/24/2021 CAROL A DENNIS MINUTE SECRETARY FOR COUNCIL MEETING IN MARCH 2021 100130 54900 $300.00 CHECK TOTAL $400.00 1466 3/24/2021 DEPARTMENT OF JUSTICE LIVESCAN FEES 100220 52510 $32.00 CHECK TOTAL $32.00 1467 3/24/2021 DMPR 4 LLC STORAGE RENTAL APR. 2021 100130 52302 $1,576.00 CHECK TOTAL $1,576.00 1468 3/24/2021 DOGGIE WALK BAGS INC DOGGIE BAGS - APRIL 2021 250170 51200 $1,752.00 CHECK TOTAL $1,752.00 1469 3/24/2021 FEHR & PEERS PS /ENGR - VARIOUS TRAFFIC RELATED PROJ - JAN 2021 100615 54410 $2,972.99 CHECK TOTAL $2,972.99 1470 3/24/2021 FRONTIER COMMUNICATIONS CORP INTERNET SERVICES - SUMMARY ACCT. 2/28/21 100230 52200 $365.82 CHECK TOTAL $365.82 4.3.b Packet Pg. 48 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 1471 3/24/2021 GOVCONNECTION INC LOGITECH USB HEADSET 100230 51300 $41.61 CHECK TOTAL $41.61 1472 3/24/2021 GRAFFITI CONTROL SYSTEMS GRAFFITI ABATEMENT-JULY 2021 100430 55540 $2,975.00 3/24/2021 GRAFFITI CONTROL SYSTEMS GRAFFITI ABATEMENT-AUGUST 2021 100430 55540 $2,975.00 CHECK TOTAL $5,950.00 1473 3/24/2021 HARDY & HARPER INC ROAD MAINTENANCE SERVICES 100655 55512 $922.00 3/24/2021 HARDY & HARPER INC ROAD MAINTENANCE SERVICES 100655 55512 $29,663.09 3/24/2021 HARDY & HARPER INC ROAD MAINTENANCE SERVICES 100655 55512 $7,928.25 CHECK TOTAL $38,513.34 1474 3/24/2021 HUMANE SOCIETY OF POMONA VALLEY INC ANIMAL CONTROL SERVICES IN MARCH 2021 100340 55404 $16,690.33 CHECK TOTAL $16,690.33 1475 3/24/2021 INLAND SOCAL MEDIA GROUP LLC DBC ADVERTISEMENT FOR APRIL 2021 100510 52160 $750.00 CHECK TOTAL $750.00 1476 3/24/2021 J & J'S SPORTS & TROPHIES CITY BIRTHDAY LOGO MASKS 100240 51400 $3,100.78 CHECK TOTAL $3,100.78 1477 3/24/2021 KEVIN D JONES CS TRAFFIC - SR57-60 ADVOCACY - FEB 2021 100615 54400 $4,000.00 CHECK TOTAL $4,000.00 1478 3/24/2021 LOOMIS COURIER SERVICES - MARCH 2021 100210 54900 $395.13 3/24/2021 LOOMIS COURIER SERVICES - MARCH 2021 100510 54900 $395.13 CHECK TOTAL $790.26 1479 3/24/2021 LOS ANGELES COUNTY DEVELOPMENT AUTH HIPLOAN - MARIA & CARLOS ORTIZ- 1731 KIOWA CREST DR 225 48935 $24,375.00 CHECK TOTAL $24,375.00 1480 3/24/2021 LOS ANGELES COUNTY PUBLIC WORKS SUMP PUMP MAINT @ SYC CANYON PARK - THRU JAN 2021 100630 52320 $886.47 CHECK TOTAL $886.47 1481 3/24/2021 LOS ANGELES COUNTY SHERIFF'S DEPT FY2020-21 SHERIFF'S LAW ENF - STREET SWEEP 01/2021 100310 55402 $1,104.21 CHECK TOTAL $1,104.21 4.3.b Packet Pg. 49 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 1482 3/24/2021 LOWE'S BUSINESS ACCOUNT ROAD MAINTENANCE SUPPLIES 100655 51300 $38.89 3/24/2021 LOWE'S BUSINESS ACCOUNT ROAD MAINTENANCE SUPPLIES 100655 55532 $46.02 CHECK TOTAL $84.91 1483 3/24/2021 LW POSTNET INC PRINTING OF PH NOTICE FOR DISTRICTS 39 AND 41 100240 52110 $772.96 CHECK TOTAL $772.96 1484 3/24/2021 MCE CORPORATION STREET MAINTENANCE & VEGETATION CONTROL - FEB 2021 100655 55530 $37.61 3/24/2021 MCE CORPORATION STREET MAINTENANCE & VEGETATION CONTROL - FEB 2021 100655 55532 $787.14 3/24/2021 MCE CORPORATION STREET MAINTENANCE & VEGETATION CONTROL - FEB 2021 100655 55528 $9,615.24 CHECK TOTAL $10,439.99 1485 3/24/2021 MERCURY DISPOSAL SYSTEMS INC HHW DISPOSAL/ACE HARDWARE 250170 55000 $2,007.64 CHECK TOTAL $2,007.64 1486 3/24/2021 MICHAEL ANTHONY GONZALEZ T&T COMMISSION STIPEND - JUL,SEP,NOV 2020 100610 52525 $135.00 CHECK TOTAL $135.00 1487 3/24/2021 MNS ENGINEERS INC ATP GRANT WRITING SERVICES - JAN 2021 100615 54410 $234.35 CHECK TOTAL $234.35 1488 3/24/2021 NETWORK PARATRANSIT SYSTEMS INC DIAMOND RIDE SERVICES - JANUARY 2021 206650 55560 $10,927.22 3/24/2021 NETWORK PARATRANSIT SYSTEMS INC DIAMOND RIDE SERVICES - SEPT 2020 206650 55560 $11,417.28 CHECK TOTAL $22,344.50 1489 3/24/2021 ONE TIME PAY VENDOR JENNIFER WANG EVENT REFUND 100 20202 $1,684.28 CHECK TOTAL $1,684.28 1490 3/24/2021 ONE TIME PAY VENDOR JOSHUA HSU GRADING BOND REFUND - 24401 STAR COURT 100 22109 $3,700.00 CHECK TOTAL $3,700.00 1491 3/24/2021 ONE TIME PAY VENDOR LE VONG C&D REFUND-DEPOSIT 100 22105 $250.00 CHECK TOTAL $250.00 4.3.b Packet Pg. 50 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 1492 3/24/2021 ONE TIME PAY VENDOR SAL -NB ROOFING C&D REFUND-DEPOSIT 100 22105 $250.00 CHECK TOTAL $250.00 1493 3/24/2021 ONE TIME PAY VENDOR SUNSHINE ROOFING C&D REFUND-DEPOSIT 100 22105 $250.00 CHECK TOTAL $250.00 1494 3/24/2021 PROTECTION ONE INC BURGLAR ALARM 03.01.21 - 05.31.21 100510 52320 $171.06 CHECK TOTAL $171.06 1495 3/24/2021 PUBLIC STORAGE #23051 STORAGE RENTAL APRIL 2021 100130 52302 $466.00 CHECK TOTAL $466.00 1496 3/24/2021 PYRO COMM SYSTEMS INC FIRE ALARM TESTING AGREEMENT 03.01.21 - 08.31.21 100510 52310 $585.00 CHECK TOTAL $585.00 1497 3/24/2021 REGIONAL TAP SERVICE CENTER FOOTHILL PASSES - FEBRUARY 2021 206650 55620 $324.00 3/24/2021 REGIONAL TAP SERVICE CENTER FOOTHILL PASSES - FEBRUARY 2021 206650 55610 $1,296.00 CHECK TOTAL $1,620.00 1498 3/24/2021 SC FUELS FLEET VEHICLE FUEL - MAR 2021 502130 52330 $37.30 3/24/2021 SC FUELS FLEET VEHICLE FUEL - MAR 2021 502430 52330 $71.22 3/24/2021 SC FUELS FLEET VEHICLE FUEL - MAR 2021 502620 52330 $173.43 3/24/2021 SC FUELS FLEET VEHICLE FUEL - MAR 2021 502630 52330 $531.27 3/24/2021 SC FUELS FLEET VEHICLE FUEL - MAR 2021 502655 52330 $629.36 CHECK TOTAL $1,442.58 1499 3/24/2021 SCHAFER CONSULTING CONSULTING SERVICES FOR ERP PROJECT - FEB 2021 503230 56135 $7,725.00 CHECK TOTAL $7,725.00 1500 3/24/2021 SHEPPARD MULLIN RICHTER & HAMPTON PROFESSIONAL SERVICES DEC 2020 - FEB 2021 100120 54022 $1,221.58 CHECK TOTAL $1,221.58 1501 3/24/2021 SOCIAL VOCATIONAL SERVICES WEED ABATEMENT - FEB 2021 100645 55528 $2,825.00 CHECK TOTAL $2,825.00 1502 3/24/2021 SOUTHERN CALIFORNIA EDISON 20671 GOLD SP & 575 S DBB - 2.1.21 - 3.3.21 238638 52210 $27.80 4.3.b Packet Pg. 51 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 3/24/2021 SOUTHERN CALIFORNIA EDISON SAFETY LIGHTS - BREA CANYON/OAKCREST LS-2 100655 52210 $3.35 3/24/2021 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - BREA CYN/FALLOWFIELD & VARIOUS 100655 52210 $150.19 3/24/2021 SOUTHERN CALIFORNIA EDISON SAFETY LIGHTS - 24230 GOLDEN SPRINGS LS-2 100655 52210 $69.40 3/24/2021 SOUTHERN CALIFORNIA EDISON SAFETY LIGHTS - 21010 WASHINGTON ST LS-2 100655 52210 $87.19 3/24/2021 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 21010 WASHINGTON ST TC-1 100655 52210 $84.23 3/24/2021 SOUTHERN CALIFORNIA EDISON SAFETY LIGHTS - 22805 GOLDEN SPRINGS LS-2 100655 52210 $91.41 3/24/2021 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - DBB N/W @ TEMPLE TC-1 100655 52210 $14.40 3/24/2021 SOUTHERN CALIFORNIA EDISON SAFETY LIGHTS - 1978 DBB/22566 GOLDEN SPRINGS LS-2 100655 52210 $164.05 3/24/2021 SOUTHERN CALIFORNIA EDISON DIAMOND BAR CENTER - 2.2.21 - 3.4.21 100510 52210 $2,909.84 3/24/2021 SOUTHERN CALIFORNIA EDISON 633 GRAND 02.10.21 - 03.12.21 238638 52210 $14.60 3/24/2021 SOUTHERN CALIFORNIA EDISON 20850 HIGH COUNTRY 2.11.21 - 3.15.21 241641 52210 $15.55 3/24/2021 SOUTHERN CALIFORNIA EDISON 21208 WASHINGTON 2.11.21 - 3.15.21 100630 52210 $16.28 3/24/2021 SOUTHERN CALIFORNIA EDISON 20980 E CANYON RIDGE - 2.11.21 - 3.15.21 241641 52210 $15.67 3/24/2021 SOUTHERN CALIFORNIA EDISON 1000 S. LEMON 2.12.21 - 3.16.21 238638 52210 $16.14 CHECK TOTAL $3,680.10 1503 3/24/2021 SPECTRUM BUSINESS INTERNET SERVICES - DEDICATED ACCESS 10MB - CH 100230 54030 $1,719.27 3/24/2021 SPECTRUM BUSINESS CABLE TV SERVICE FOR DBC - 3/1/21 100230 54030 $123.03 CHECK TOTAL $1,842.30 1504 3/24/2021 SURENDRA R MEHTA T&T COMMISSION STIPEND JULSEP-NOV 2020 100610 52525 $135.00 CHECK TOTAL $135.00 1505 3/24/2021 TASC MONTHLY ADMINISTRATIVE FEES 100220 52515 $117.00 CHECK TOTAL $117.00 1506 3/24/2021 THE COMDYN GROUP INC PROF SERVICES - GIS SUPPORT JAN-FEB 2021 100230 54900 $4,050.93 4.3.b Packet Pg. 52 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $4,050.93 1507 3/24/2021 THE SAN GABRIEL VALLEY NEWSPAPER GR 2/23/21 PUBLIC HRG LEGAL AD - 2825 DIA BAR BLVD 100 22107 $665.00 3/24/2021 THE SAN GABRIEL VALLEY NEWSPAPER GR 1/28/21 PUBLIC HRG LEGAL AD - 3255 DIA BAR BLVD 100 22107 $614.00 3/24/2021 THE SAN GABRIEL VALLEY NEWSPAPER GR 2/9/21 PUBLIC HRG LEGAL AD - 1523 SILVER RAIN 100 22107 $687.50 CHECK TOTAL $1,966.50 1508 3/24/2021 THE SAUCE CREATIVE SERVICES INC GINGERBREAD HOUSE DECORATING CONTEST 100520 52110 $325.00 3/24/2021 THE SAUCE CREATIVE SERVICES INC BUNNY BOX SIGNS AND STICKERS 100520 52110 $595.99 3/24/2021 THE SAUCE CREATIVE SERVICES INC BUNNY BOX DESIGN, FLYER, AD, POST 100520 52110 $800.00 3/24/2021 THE SAUCE CREATIVE SERVICES INC BIRTHDAY PARTY LOGO 100520 52110 $450.00 3/24/2021 THE SAUCE CREATIVE SERVICES INC BIRTHDAY PARTY DESIGN, FLYER AND POST 100520 52110 $275.00 3/24/2021 THE SAUCE CREATIVE SERVICES INC WINDMILL HUNT SIGNS 100520 52110 $308.38 3/24/2021 THE SAUCE CREATIVE SERVICES INC E-SPORTS POST UPDATE - APRIL 100520 52110 $35.00 CHECK TOTAL $2,789.37 1509 3/24/2021 THE TAIT GROUP INC CS-ENGR. - TRAFFIC RELATED PROJECTS - FEB 2021 100615 54410 $3,900.00 CHECK TOTAL $3,900.00 1510 3/24/2021 US BANK CALCARD STATEMENT - FEB 2021 999 28100 $6,076.82 CHECK TOTAL $6,076.82 1511 3/24/2021 VALLEY VISTA SERVICES , INC. STREET SWEEPING SERVICES - FEB 2021 100655 55510 $12,303.54 CHECK TOTAL $12,303.54 1512 3/24/2021 VERIZON WIRELESS WIRELESS PHONE SERVICE - PW & CD 1/17 - 2/16/21 100230 52200 $4,496.14 CHECK TOTAL $4,496.14 1513 3/24/2021 WALNUT VALLEY WATER DISTRICT DISTRICT 38 - FEB 2021 238638 52220 $4,805.03 3/24/2021 WALNUT VALLEY WATER DISTRICT DISTRICT 39 - FEB 2021 239639 52220 $2,890.45 4.3.b Packet Pg. 53 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 3/24/2021 WALNUT VALLEY WATER DISTRICT DISTRICT 41 (PART 1) FEB 2021 241641 52220 $33.58 3/24/2021 WALNUT VALLEY WATER DISTRICT CITY HALL - FEB 2021 100620 52220 $525.19 3/24/2021 WALNUT VALLEY WATER DISTRICT DIAMOND BAR CENTER - FEB 2021 100510 52220 $225.41 3/24/2021 WALNUT VALLEY WATER DISTRICT PARKS - FEB 2021 100630 52220 $7,042.40 CHECK TOTAL $15,522.06 1514 3/24/2021 WEST COAST ARBORISTS INC CITYWIDE TREE WATERING 2.16.21 - 2.28.21 100645 55522 $1,360.00 3/24/2021 WEST COAST ARBORISTS INC DIST 38 TREE CARE AND MAINT 2.16.21 - 2.28.21 238638 55522 $6,551.00 3/24/2021 WEST COAST ARBORISTS INC CITYWIDE TREE CARE AND MAINT - 2.16.21 - 2.28.21 100645 55522 $3,201.00 CHECK TOTAL $11,112.00 1515 3/24/2021 WEST COAST MEDIA INC DBC ADVERTISEMENT 100510 52160 $500.00 CHECK TOTAL $500.00 1516 3/24/2021 WISCONSIN QUICK LUBE INC VEHICLE MAINTENANCE - PARKS & FACILITIES 502630 52312 $98.36 3/24/2021 WISCONSIN QUICK LUBE INC VEHICLE MAINT - NEIGHBORHOOD IMPROVEMENT 502430 52312 $73.69 3/24/2021 WISCONSIN QUICK LUBE INC VEHICLE MAINT - CIVIC CENTER 502620 52312 $46.76 CHECK TOTAL $218.81 1517 3/24/2021 WOODRUFF SPRADLIN & SMART LEGAL SVCS - JANUARY 2021 100120 54020 $161.00 3/24/2021 WOODRUFF SPRADLIN & SMART LEGAL SVCS - JANUARY 2021 103410 54300 $184.00 3/24/2021 WOODRUFF SPRADLIN & SMART LEGAL SVCS - JANUARY 2021 100 22107 $230.00 3/24/2021 WOODRUFF SPRADLIN & SMART LEGAL SVCS - JANUARY 2021 100 22107 $253.00 3/24/2021 WOODRUFF SPRADLIN & SMART LEGAL SVCS - JANUARY 2021 100120 54020 $1,035.00 3/24/2021 WOODRUFF SPRADLIN & SMART LEGAL SVCS - JANUARY 2021 100120 54020 $1,886.00 3/24/2021 WOODRUFF SPRADLIN & SMART LEGAL SVCS - JANUARY 2021 100120 54020 $2,323.00 3/24/2021 WOODRUFF SPRADLIN & SMART LEGAL SVCS - JANUARY 2021 100120 54020 $3,266.00 3/24/2021 WOODRUFF SPRADLIN & SMART LEGAL SVCS - JANUARY 2021 100120 54020 $7,567.00 CHECK TOTAL $16,905.00 GRAND TOTAL $312,703.29 4.3.b Packet Pg. 54 Agenda #: 4.4 Meeting Date: April 6, 2021 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: TREASURER'S STATEMENT STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: Approve the November 2020 Treasurer’s Statement. FINANCIAL IMPACT: None. BACKGROUND/DISCUSSION: Consistent with City policy, the Finance Department presents the monthly Treasurer’s Statement to the City Council for review and approval. This statement shows the cash balances with a breakdown of various investment accounts and the yield to maturity from investments. This statement also includes an investment portfolio management report which details the activities of investments. All investments have been made in accordance with the City’s Investment Policy. PREPARED BY: 4.4 Packet Pg. 55 REVIEWED BY: Attachments: 1. 4.4.a Treasurer's Report - November 2020 2. 4.4.b Investment Portfolio - November 2020 4.4 Packet Pg. 56 4.4.a Packet Pg. 57 4.4.a Packet Pg. 58 4.4.b Packet Pg. 59 4.4.b Packet Pg. 60 4.4.b Packet Pg. 61 4.4.b Packet Pg. 62 Agenda #: 4.5 Meeting Date: April 6, 2021 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: GENERAL PLAN STATUS REPORT FOR 2020 RECOMMENDATION: Receive and file. FINANCIAL IMPACT: None. BACKGROUND: State Law requires each city to prepare and adopt a comprehensive, long-term General Plan to guide its physical development. The General Plan is a policy document comprised of goals and policies for implementation. The City of Diamond Bar has periodically amended the General Plan as needed since its adoption on July 25, 1995. In the fall of 2016, the City embarked on a comprehensive update to the General Plan to create a community vision and blueprint for the City through 2040. The City Council adopted Diamond Bar General Plan 2040 on December 17, 2019. In accordance with California Government Code Section 65400(b), the City is required to submit an annual General Plan status report to the local legislative body (City Council), the State Governor’s Office of Planning and Research (OPR), and State Department of Housing and Community Development (HCD) on the status of the General Plan, its implementation progress, and how the City is meeting the region’s housing needs. The attached report lists the City’s progress toward the implementation of the updated General Plan for the period of January 1, 2020 to December 31, 2020. On March 23, 2021, the Planning Commission reviewed the report and directed staff to forward it to the City Council with a recommendation to receive and file. PREPARED BY: 4.5 Packet Pg. 63 REVIEWED BY: Attachments: 1. 4.5.a General Plan Status Report for 2020 4.5 Packet Pg. 64 Page 1 of 36 City of Diamond Bar General Plan Status Report 2020 Period beginning January 1, 2020, and ending December 31, 2020 OVERVIEW On December 17, 2019, the City Council adopted Diamond Bar General Plan 2040, which is a State mandated document that the City uses to plan the framework for its future physical, social, and economic development. The General Plan is considered a long-term document that projects development within a community for approximately 20 years. The General Plan serves as the foundation for all land use decisions and provides a vision and blueprint about how a community will grow, reflecting community priorities and values while shaping the future. The City of Diamond Bar General Plan consists of the following eight elements (“Chapters”): 1) Land Use & Economic Development 2) Community Character & Placemaking 3) Circulation 4) Resource Conservation 5) Public Facilities & Services 6) Public Safety 7) Community Health & Sustainability 8) Housing The following information summarizes the status of the goals and policies that the City has implemented for each chapter of the updated General Plan in 2020. Each chapter is organized by color scheme for navigation. 1. Land Use & Economic Development POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT LAND USE & ECONOMIC DEVELOPMENT This chapter provides the overall framework for the physical development of the community and the distribution and intensity of land uses upon which many of the goals and policies in other chapters are based. GENERAL Policies LU-P-5 Land Use Ensure that adequate public services, facilities, and infrastructure are available or provided to support new development, including water, wastewater, stormwater, solid waste, transportation, public safety, and parks. Safe, Clean Water Program (Measure W) Staff prepared and submitted the City’s Measure W Annual Plan and executed Fund Transfer Agreement to the County of Los Angeles for processing as the final items required by the County to disperse the local return funds to Diamond Bar. The Annual Plan outlined the City’s proposed Measure W expenditures for the fiscal year including CIP projects, routine maintenance, consultant costs, efforts to pursue grant funding, and staff time. As a result, Diamond Bar received approximately $880,000 for FY 2020-2021. Also applies to Community, Character, and Placemaking Chapter policies CC-P-5 and CC-P-6, and Resource Conservation Chapter goal RC-G-12. Public Works RESIDENTIAL Goals LU-G-7 Land Use Promote a variety of housing and neighborhood types that respond to a range of income, household sizes, and accessibility levels. Staff embarked on preparing a Housing Element Update for the 2021-2029 planning period (sixth cycle) which will include analyses Community Development 4.5.a Packet Pg. 65 Page 2 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT of the community’s housing needs, opportunities and constraints, as well as policies and programs to facilitate the construction, rehabilitation, and preservation of housing for all economic segments of the community. The City received two planning grants. On March 10, 2020, the California Department of Housing and Community Development (HCD) notified the City of a conditional commitment of $160,000 Senate Bill 2 Planning Grants Program award to use the funds towards accelerating housing production by streamlining the approval of affordable housing and promoting development consistent with the state’s planning priorities, among other related activities. On October 16, 2020, HCD also notified the City of a conditional commitment of $129,000 Local Early Action Planning (LEAP) Grants Program award to use the funds for the preparation and adoption of planning documents, process improvements that accelerate housing production, and to facilitate compliance in implementing the sixth cycle of the Regional Housing Needs Assessment (RHNA). Policies LU-P-8 Land Use Ensure that new residential development be compatible with the prevailing character of the surrounding neighborhood in terms of building scale, density, massing, and design. Where the General Plan designates higher densities, provide adequate transitions to existing development. All new residential development requires review and approval by the Planning Commission through a Development Review application process to assess a project’s compatibility, architectural design, size, scale and massing with the neighborhood. The Planning Commission reviews the design to ensure compliance with the City’s General Plan policies and design guidelines, and to minimize adverse effects of the proposed project upon the surrounding properties and the City in general. Community Development LU-P-9 Land Use Incorporate architectural and landscape design features in new development that create more pedestrian-friendly neighborhoods, such as orientation to the street; set-back, or detached garages; tree-lined streets; and landscaped parkways between streets and sidewalks. Through the development review process, all new development is reviewed to promote high functional and aesthetic architectural and landscape standards to complement and add to the economic, physical, and social character of Diamond Bar. Community Development COMMERCIAL, OFFICE, AND INDUSTRIAL Policies LU-P-14 Land Use Improve vehicular accessibility, traffic flow, and parking availability as well as pedestrian and bicycle access and amenities within office, commercial, and industrial areas. During project review, staff ensures that all office, commercial, and industrial areas provide improved vehicular accessibility, traffic flow, and parking availability as well as review for opportunities to incorporate pedestrian and bicycle access and amenities. Community Development 4.5.a Packet Pg. 66 Page 3 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT Adaptive Traffic Control System The City applied for and was awarded a $1.4 million grant fund by Metro for the development and implementation of an Adaptive Traffic Control System (ATCS). ATCS is a traffic management strategy in which traffic signal timing changes, or adapts, based on actual traffic demand. This is accomplished using an adaptive traffic control system consisting of both hardware and software. In October 2018, the Council awarded a contract with Siemens to implement the new ATCS. The implementation work (hardware and software) was completed in 2020 and the system is currently fully functional. Considering the unusual fluctuations in the traffic load in the main arterials of the City during 2020, the system proved to be responsive to those changes by updating signal timing in real-time. As the system collects more data through 2021 and after the traffic goes back to its normal course, it will be possible to have a data-driven before/after analysis of the improvements in the City’s traffic management and show the effectiveness of the system. Also applies to Circulation Chapter policies CR-P-20 and CR-P-21. Public Works PUBLIC FACILITIES, OPEN SPACE, AND HILLSIDES Policies LU-P-56 Land Use Ensure that development on privately owned, residentially designated land in hillside areas is compatible with surrounding natural areas promoting the following design principles: a) Minimize—as articulated by the landform grading criteria of the Development Code’s Hillside Management regulations— excavation, grading, and earthwork to retain natural vegetation and topography; b) Preserve existing vistas of significant hillside features such as ridgelines, particularly from public places; All new residential development requires review and approval by the Planning Commission through a Development Review application process to ensure compliance with the design principles listed. Community Development 4.5.a Packet Pg. 67 Page 4 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT c) Do not create unsafe conditions; d) Incorporate site and architectural designs that are sensitive to natural contours and land forms and hydrological features; e) Preserve natural watersheds, including existing vegetation within undeveloped hillside areas to the maximum extent feasible, including mature trees and native plant materials; f) Incorporate fuel modification as part of the Fire Department’s approved fuel modification program; g) Utilize planting palettes consisting of drought tolerant, fire resistant, non-invasive plants that are native to or compatible with those in the surrounding area; and h) Group plants within swale areas to more closely reflect natural conditions within landform graded slopes. Grading, Encroachment, Transportation Permits, and Violation Prevention Pursuant to the Municipal Code and the General Plan goals, in 2020, the City reviewed plans for and issued 4 grading permits, 211 Encroachment Permits, 33 dumpster permits, and 30 Oversized Load Transportation Permits. To preserve resources and prevent code violations, the City issued 8 NPDES Notice of Violations that mostly were related to illicit discharges into the storm drain system. Also applies to Circulation Chapter policies CR-P-60, CR-P-62, and CR-P-64, Resource Conservation Chapter goals and policies RC-G- 7, RC-P-23, and RC-P-33, and Public Safety Chapter policy PS-P-3. Public Works ECONOMIC DEVELOPMENT Policies – Commercial Centers ED-P-5 Economic Development Work with existing commercial center owners and commercial real estate professionals to enhance commercial development opportunities that meet the needs of adjacent neighborhoods and other nearby uses by facilitating communication between developers and target populations, identifying additional development or redevelopment sites in and around the centers, and improving exposure along adjacent transportation corridors. Staff enlisted Urban Land Institute (ULI) to assist the City in assessing the strategies for transforming the Town Center Mixed Use district into a viable downtown. ULI is assembling a Technical Advisory Panel (TAP), comprised of experts in various disciplines including architecture, finance, land development, land use law, urban design and economics. TAP will identify opportunities, constraints and strategies, and publish a report containing findings and recommendations for developing and implementing a downtown. Community Development Policies – Community-Serving Uses ED-P-7 Economic Development Allow for home occupations where compatible with the privacy and residential character of the neighborhood. Home based businesses are allowed and required to comply with the operating standards in Diamond Bar Municipal Code Section 22.42.070 where the business shall be incidental and secondary to the residential use of the property, alterations that alters the character of the residence or change its occupancy classification would be prohibited, and activities that create nuisance such as levels or glare, light, noise, solid waste, or other characteristics in excess of that customarily associated with similar residential uses are prohibited. Community Development 4.5.a Packet Pg. 68 Page 5 of 36 2. Community Character & Placemaking POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT COMMUNITY CHARACTER & PLACEMAKING This Chapter guides the physical form and character of the City by providing strategies to strengthen the City’s identity thr ough both new development and public improvements. Placemaking elements include features such as monuments and decorative treatments that define City entry points, public art installations, decorative streetscape elements at key intersections or districts, and landscaping that creates a memorable and unified character. The Goals and Polices contained in this Chapter provide direction to incorporate such elements into both new development projects and public improvements. The majority of the Goals and Policies are related to the new opportunities within the four mixed-use focus areas and encourage walkable and pedestrian-oriented neighborhoods. OVERALL CHARACTER & DESIGN Goals CC-G-5 Community Character & Placemaking Provide an expanded pedestrian and bicycle infrastructure network to improve connectivity throughout the city where topography and technology permit. Diamond Bar Boulevard Complete Streets Corridor The design of the Diamond Bar Boulevard Complete Streets Project was completed in 2020. Complete streets are designed and operated to prioritize safety, comfort, and access to destinations for all people who use the street. Complete Streets make it easy for pedestrians to cross the street, walk to shops, jobs, schools, bicycle to work, and move actively with assistive devices. They allow buses to run on time and make it safe for people to walk or move actively to and from train stations. The Diamond Bar Boulevard Complete Street will also include sustainable stormwater management through bioswales and landscaping that prioritize native and drought-tolerant plants. Staff received, reviewed, and approved the 100% Plans, Specifications, and Estimates (PS&E) documents from the project consultant. Staff continued to pursue additional funding for the construction phase of the project and submitted grant application packages. The construction cost for the project is estimated to be around $6 million. The City has secured $3 million in Metro grant funding for construction. On September 15, the City applied for an additional $2.6 million of Cycle 5 Active Transportation Program (ATP) grant funds, a program funded by the California Transportation Commission (CTC) and managed by Caltrans. The ATP grant is a competitive program that funds active transportation projects throughout the State. If not successful in the statewide competition, there is a second opportunity to receive grant funds through the regional competition through the Southern California Association of Governments (SCAG). Public Works 4.5.a Packet Pg. 69 Page 6 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT Also applies to Community Character & Placemaking Chapter goals CC-G-7 and CC-G-10 and policies CC-P-5 through CC-P-7, CC-P- 9, and Circulation Chapter goal CR-G-2 and policies CR-P-4, CR-P- 14, and CR-P-29 Policies – City Identity CC-P-1 Community Character & Placemaking Develop visual gateways at entry points to the city and at the entrances to the Neighborhood Mixed Use, Town Center, Transit- Oriented Mixed Use, and Community Core areas. Establish a gateway design palette and guidelines consistent with the existing gateway at Grand Avenue and Longview Drive, employing the same or a similar elements of streetscape design, monument signage, lighting, and building massing and setback. 57/60 Project Community Identifiers For most of 2020, the City has been in negotiations with Metro, as the project owner of SR-57/60 Confluence Chokepoint Relief Program Project to include the City’s community identifiers and entry monuments in the design of the project and to cover the cost of the design and construction of these improvements by the project. So far, the negotiation has been successful and the City identifiers, such as the iconic windmills, the hills, diamond-shape theme, and City seal will be included in the design of the sound walls, retaining walls, and the bridge. Additionally, the project will include entry monuments per the City’s standard entry monument design. Also applies to Community Character & Placemaking Chapter policies CC-P-2 through CC-P-4 Grand Avenue/Golden Springs Dr Intersection Improvements The intersection improvements project will include slope grading at the southeast corner of the intersection. To prepare for and create space for the regraded slopes, Hole #3 of Diamond Bar Golf Course needed to be relocated. In 2020, Hole #3 was relocated and graded; and irrigation lines and new sods were installed. This is separate from the Diamond Bar Golf Course Renovation Project, a major improvements project and a precursor to the 57/60 Confluence Project. As for the main intersection improvements project, which includes construction work on the roadway, storm drain, tunnel relocation, retaining walls, and grading, the necessary agreements were put in place in 2020. The intersection construction is tentatively scheduled to commence in early 2021. Also applies to Community Character & Placemaking Chapter policies CC-P-4 through CC-P-7, CC-P-9, and CC-P-64 and Circulation Chapter policy CR-P-27 Street Name Sign Design Public Works 4.5.a Packet Pg. 70 Page 7 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT As part of the City’s community branding, a new street sign design was developed in 2020 and was approved to be used on a pilot installation. The new design will be used in the illuminated street name replacement project that is planned for 2021. Also applies to Community Character & Placemaking Chapter policy CC-P-34 CC-P-2 Community Character & Placemaking Incorporate prominent corner architectural features, such as prominent entries or corner towers, on new development at key intersections or gateways. See Community Character & Placemaking Chapter policy CC-P-1 Public Works CC-P-3 Community Character & Placemaking Encourage new mixed-use development to incorporate public art that celebrates the history and character of Diamond Bar to reinforce community identity, create unique places, and provide a basis for community pride and ownership. Encourage diversity in content, media, and siting to reflect an array of cultural influences. See Community Character & Placemaking Chapter policy CC-P-1 Public Works CC-P-4 Community Character & Placemaking Continue to support community identity with streetscape improvement and beautification projects in both existing residential areas and commercial centers, as well as new mixed-use areas that incorporate unified landscaping and pedestrian amenities. Amenities should include seating, bus shelters, pedestrian safety treatments such as sidewalk bulb-outs and widening and improved crosswalks, and city-branded decorative elements such as street lighting, concrete pavers, tree grates, and theme rails. See Community Character & Placemaking Chapter policy CC-P-1 Public Works CC-P-5 Community Character & Placemaking Establish a landscaping palette made up of native, drought-tolerant plants and stormwater management systems with a view to enhancing beautification and sustainable landscaping practices. See Land Use & Economic Development Chapter policy LU-P-5 and Community Character & Placemaking Chapter goal CC-G-5 and policy CC-P-1 Public Works CC-P-6 Community Character & Placemaking Prioritize sustainability in site design. When incorporating on-site stormwater management through the use of bioswales, rain gardens, permeable pavement, and/or other available low-impact development technologies, require such features to be aesthetically integrated into the site design. See Land Use & Economic Development Chapter policy LU-P-5 and Community Character & Placemaking Chapter goal CC-G-5 and policy CC-P-1 Sunset Crossing Park The proposed Sunset Crossing Park is located adjacent to the Diamond Bar Channel, which handles the drainage from approximately 1,600 acres within the City of Diamond Bar. This makes the park an excellent candidate for a water quality treatment facility that can be incorporated into the proposed park’s design. To further study the feasibility of such a treatment facility, staff submitted an application to the LA County Flood Control District for funding through their Measure W Technical Resources Program (TRP), which funds the development of Project Feasibility Studies for water Public Works 4.5.a Packet Pg. 71 Page 8 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT quality purposes. If awarded, Technical Assistance Teams from the County will work with Diamond Bar to complete a feasibility study, add the Sunset Crossing Park project to an eligible water quality plan, and address other prerequisites to apply for the Infrastructure Program, which awards construction funding to water quality projects. Note that only the stormwater capture/treatment-related elements and certain landscape elements would be eligible for Measure W funding. While there are several steps before the opportunity to apply for the Infrastructure Program, a successful TRP application would mean the first steps towards potential construction funding for several park elements. The results of the application review will be available in mid-2021. Also applies to Resource Conservation Chapter policy RC-P-22 and Public Facilities & Services Chapter goal PF-G-1 and policies PF-P- 3 and PF-P-12 Policies – Streetscapes & Building to Street Interface CC-P-7 Community Character & Placemaking Ensure that new development provides an integrated pattern of roadways, bicycle routes and paths, and pedestrian connections within and between neighborhoods that are safe, comfortable, and accessible sidewalks for people of all ages and abilities. See Community Character & Placemaking Chapter goal CC-G-5 and policy CC-P-1 Public Works CC-P-9 Community Character & Placemaking Encourage pedestrian orientation in mixed-use development using a variety of site planning and architectural strategies, such as locating and orienting buildings to street frontages, plazas, or pedestrian paseos; providing visual transparency through fenestration; entries and arcades close to the street edge and sidewalk; and/or incorporating porches, patios, or outdoor spaces that overlook or interact with front yards or sidewalks. See Community Character & Placemaking Chapter goal CC-G-5 and policy CC-P-1 Public Works CC-P-11 Community Character & Placemaking In residential and mixed-use areas, use traffic calming measures such as pavers, bollards, sidewalk bulb-outs, and speed humps to slow travel speeds. NTMP and Other Traffic Calming Measures In residential neighborhoods, the Neighborhood Traffic Management Program (NTMP) continues to be an effective tool in providing a procedure to implement traffic calming devices in neighborhoods that experience speeding and cut-through traffic. The program’s goal is to improve the livability of neighborhoods by empowering residents with the right calming devices to modify driver behavior. Staff completed NTMP on Castle Rock Road neighborhood and continued working with Pantera Road neighborhood on which the initial design of traffic calming measures has been completed. On Public Works 4.5.a Packet Pg. 72 Page 9 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT the new North Del Sol Lane NTMP traffic data was collected and neighborhood meetings are being scheduled. Additionally, there has been a neighborhood request for an NTMP on the Hawkwood Drive area, where staff discussed neighborhood concerns and assigned neighborhood captains for the program. As part of the NTMP and the City’s continuous monitoring of the traffic flow and safety city-wide, traffic calming and improvement measures were installed or updated. As part of these efforts, in August 2020, the City installed delineators on Grand Avenue in the right turn pocket at Cleghorn Drive to protect the right turn and hinder thru-traffic drivers from using that lane to continue along Grand Avenue towards Diamond Bar Boulevard. This will prevent potential accidents between westbound traffic and vehicles exiting (right turn) from Cleghorn Drive and its associated communities to Grand Avenue. Also applies to Circulation Chapter policies CR-P-22 and CR-P-23 and Community Health & Sustainability Policy CHS-P-29. Policies - Building Massing and Design CC-P-30 Community Character & Placemaking Ensure that infill residential development is designed to be sensitive to the scale, character, and identity of adjacent existing development. All infill residential development requires review and approval by the Planning Commission through a Development Review application process to ensure that the project is designed to be sensitive to the scale, character, and identity of adjacent existing development. Community Development CC-P-34 Community Character & Placemaking Update the City of Diamond Bar Citywide Design Guidelines as needed to reflect the design guidance articulated in the General Plan. See Community Character & Placemaking Chapter policy CC-P-1 New City of Diamond Bar Transportation Study Guidelines for Vehicle Miles Traveled (VMT) and Level of Service Assessment Changes in state law have fundamentally redefined how project- generated traffic impacts are measured under the California Environmental Quality Act (CEQA). Rather than evaluating how a project affects motorists, CEQA now requires the impact of project- generated traffic to be measured in terms of its contribution to greenhouse gas (GHG) emissions. The new metric used to assess such impacts is “Vehicle Miles Traveled” (VMT), replacing “Level of Service” (LOS) as the measure of transportation impacts in environmental impact reports and other CEQA documents. To establish new baselines and thresholds of significance to evaluate VMT impacts the City Council, at its July 21, 2020 meeting adopted Resolution No. 2020-30. Subsequently, the City’s Traffic Impact Analysis Guidelines (TIA, Rev. 2009) was updated to reflect Public Works 4.5.a Packet Pg. 73 Page 10 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT the change to the project evaluation process. The City, with the assistance of a consultant, completed a comprehensive update of the City’s TIA. The new document “City of Diamond Bar Transportation Study Guidelines for Vehicle Miles Traveled and Level of Service Assessment” (TSG) will completely replace the TIA. The TSG establishes the methodology for determining the baselines from which VMT thresholds are measured. Outside of the CEQA process, the City has the option to continue to evaluate projects using the LOS metric, and may continue to assess fair share fees for intersection and other roadway improvements, and Diamond Bar will continue to do so per General Plan Goals and Policies, and the new TSG. Also applies to Circulation Chapter goals CR-G-1, CR-G-2, and CR- G-6 through CR-G-8 and policies CR-P-2, CR-P-5 through CR-P-7, CR-P-12, CR-P-13, CR-P-16, CR-P-30, and CR-P-54 NEIGHBORHOOD MIXED USE FOCUS AREA Goals CC-G-7 Community Character & Placemaking Create a well-designed, walkable, mixed-use neighborhood that encourages community interaction, showcases the city’s identity, and is integrated with residential uses to the east. See Community Character & Placemaking Chapter goal CC-G-5 Public Works CC-G-10 Community Character & Placemaking Establish a visual gateway into the city at the north end of the focus area. See Community Character & Placemaking Chapter goal CC-G-5 Public Works COMMUNITY CORE FOCUS AREA Policies CC-P-64 Community Character & Placemaking Provide streetscape and intersection improvements along Golden Springs Drive to enhance comfort and safety for all modes of travel and increase accessibility to and from surrounding areas. See Community Character & Placemaking Chapter policy CC-P-1 2020 IFRA and TCEP Grant Application for the SR-57/60 Confluence Chokepoint Relief Program The City of Diamond Bar along with Caltrans, the San Gabriel Valley Council of Governments (SGVCOG), and the City of Industry, actively participated in the preparation of the grant application FY 2020 Infrastructure for Rebuilding America (INFRA) discretionary grant program for the SR-57/60 Confluence Chokepoint Relief Program. No INFRA grant fund was for this project in 2020. On August 3, 2020, the LA County Metropolitan Transportation Authority (Metro), in partnership with Caltrans, submitted a grant application for the SR-57/60 Confluence Chokepoint Relief Program Public Works 4.5.a Packet Pg. 74 Page 11 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT Project to the California Transportation Commission, seeking $217.9 million in funding from the Senate Bill 1 (SB 1) Trade Corridors Enhancement Program (TCEP). The City of Diamond Bar actively participated in the preparation of this application along with Caltrans, the San Gabriel Valley Council of Governments (SGVCOG), and the City of Industry. Key project components include the construction of an additional travel lane on the northbound SR-57, construction of a new eastbound SR-60 bypass off-ramp of Grand Avenue, reconstruction of the south half of the Grand Avenue Interchange, and construction of new eastbound on-ramps from Grand Avenue. This project has a total cost of $420,200,000. On December 3, 2020, the California Transportation Commission awarded $217.9 million to Metro for the SR-57/60 Confluence Project. LA County Measure M funds will be utilized to cover the remainder of this project’s costs. Construction work on this project is anticipated to start in 2022. Also applies to Circulation Chapter policies CR-P-26, CR-P-27, and CR-P-29 3. Circulation POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT CIRCULATION This Chapter is aimed at improving the transportation network within the City, balancing the circulation needs with safety and access across a variety of modes of t ransportation, including automobile travel, public transit, non-motorized transportation and goods movement through a Complete Streets approach. TRANSPORTATION NETWORK AND STREET DESIGN Goals CR-G-1 Circulation Improve the operating efficiency of the transportation system by reducing vehicle travel demand and providing opportunities for other modes of travel. Before approving roadway improvements that focus on increasing vehicle capacity, consider alternatives that reduce vehicle volumes and prioritize projects that would reduce single-occupancy vehicle use and greenhouse gas emissions. See Community Character & Placemaking Chapter policy CC-P-34 Public Works CR-G-2 Circulation Maintain a street classification system that considers the broad role of streets as corridors for movement but also reflects a Complete Streets concept that enables safe, comfortable, and attractive See Community Character & Placemaking Chapter policy CC-P-34 Public Works 4.5.a Packet Pg. 75 Page 12 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT access for pedestrians, bicyclists, motorists, and transit users of all ages and abilities, in a form that is compatible with and complementary to adjacent land uses, including neighborhood schools. CR-G-6 Circulation Track the use of future transportation options such as Transportation Network Companies (TNCs), ride sharing, and autonomous vehicles (AVs), and adjust City requirements, such as roadway design or parking standards as needed to ensure safety and access for all users and modes. See Community Character & Placemaking Chapter policy CC-P-34 Public Works Policies CR-P-1 Circulation When redesigning streets, plan for the needs of different modes by incorporating elements such as shade for pedestrians, safe pedestrian-friendly crossings/ intersections, lighting at the pedestrian scale, bike lanes, signage visible to relevant modes, transit amenities, etc. Bus Shelter Replacement at Diamond Bar Blvd & Temple Ave In May 2020, the City installed two new bus shelters, benches, trash bins, and solar panels for the northbound and southbound bus stops at the intersection of Diamond Bar Boulevard and Temple Avenue. The new shelters, designed and installed by using grant funds provided by the Foothill Transit Authority, were painted to match the current decorative traffic signal poles as established by the City of Diamond Bar’s Streetscape Standards. Also applies to Circulation Chapter goal CR-G-13 and policies CR- P-8 and CR-P-48 Public Works CR-P-2 Circulation Promote new street designs and efforts to retrofit existing streets in residential neighborhoods minimize traffic volumes and/or speed as appropriate without compromising connectivity for emergency vehicles, bicycles, pedestrians, and users of mobility devices. See Community Character & Placemaking Chapter goal CC-G-5 and policy CC-P-34 Local Road Safety Plan (LRSP) Federal regulations require each state to develop a Strategic Highway Safety Plan (SHSP) to reduce traffic accident fatalities and serious injuries on all public roadways. While the SHSP is used as a statewide approach for improving roadway safety, a Local Road Safety Plan (LRSP) is the means for providing City-owned roads with the opportunity to address unique highway safety needs in their jurisdictions while contributing to the SHSP. The City applied for and was awarded a grant by Caltrans to develop an LRSP. In 2020, staff started working with a traffic consultant firm to develop an LRSP for the City. As part of the effort, virtual meetings were held with the school districts, Sheriff’s Department, and Fire Department. The City’s consultant has completed a collision data analysis and is currently completing a countermeasures report, which incorporates the feedback from all stakeholders to develop a proposed LRSP. Public Works 4.5.a Packet Pg. 76 Page 13 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT Also applies to Circulation Chapter policies CR-P-19, CR-P-26, CR- P-45, and CR-P-65, and Public Safety Chapter policy PS-P-35 CR-P-4 Circulation Develop traffic calming strategies for Diamond Bar Boulevard between Temple Avenue and Golden Springs Drive in order to provide a safe and comfortable pedestrian-friendly environment along and through the Neighborhood Mixed Use and Town Center Mixed Use areas. See Community Character & Placemaking Chapter goal CC-G-5 Public Works CR-P-5 Circulation Necessary transportation improvements should be in place, or otherwise guaranteed to be installed in a timely manner, before or concurrent with new development. In evaluating whether a transportation improvement is necessary, consider alternatives to the improvement consistent with CR-G-1, and the extent to which the improvement will offset the traffic impacts generated by proposed and expected development. See Community Character & Placemaking Chapter policy CC-P-34 Public Works CR-P-6 Circulation Continue to implement congestion mitigation measures to ensure that new projects do not significantly increase local City congestion based on defined level of service (LOS) standards. See Community Character & Placemaking Chapter policy CC-P-34 Public Works CR-P-7 Circulation Support the development of City street design standards that: a) Address the needs of different modes according to roadway classification b) Reduce the potential for conflicts and safety risks between modes; and c) Support and manage the use of transportation options that will become increasingly popular in the future, such as TNCs, AVs, micro-transit (privately operated transit), and other emerging transportation technologies. See Community Character & Placemaking Chapter policy CC-P-34 Public Works CR-P-8 Circulation Plan for passenger pick-up/drop-off locations within both public right-of-way and on private properties for AVs, TNCs, and micro- transit to limit traffic disruptions and increase safety by identifying and designating specific locations for pick-ups and drop-offs. See Circulation Chapter policy CR-P-1 Public Works VEHICLE CIRCULATION Goals CR-G-7 Circulation Ensure smooth traffic flows by maintaining or improving traffic levels of service (LOS) that balance operational efficiency, technological and economic feasibility, and safety. See Community Character & Placemaking Chapter policy CC-P-34 Public Works CR-G-8 Circulation Encourage reduction in vehicle miles traveled (VMT) as part of a strategy to reduce greenhouse gas (GHG) emissions. See Community Character & Placemaking Chapter policy CC-P-34 Public Works 4.5.a Packet Pg. 77 Page 14 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT Policies – Level of Service (LOS) Standards CR-P-12 Circulation Balance meeting LOS standards with the need to reduce VMT through maintaining and supporting multi-modal connectivity such as transit, bicycling, walking, and by encouraging infill development with a pedestrian-friendly urban design character. See Community Character & Placemaking Chapter policy CC-P-34 Public Works CR-P-13 Circulation Maintain a standard of LOS D during peak hour conditions on all streets in the City’s jurisdiction, with exceptions as noted below: a) Brea Canyon Rd south of Diamond Bar Blvd (LOS F) b) Brea Canyon Rd north of Diamond Bar Blvd (LOS E) c) Grand Ave west of Country View Dr (LOS E) d) Diamond Bar Blvd at SR-60 Eastbound Ramps (LOS F). See Community Character & Placemaking Chapter policy CC-P-34 Public Works CR-P-14 Circulation Prioritize pedestrian movement and safety— through wider sidewalks, more frequent pedestrian crossings, sidewalk bulbouts, median pedestrian refuges etc.—rather than LOS in Community Character Priority Areas, which are areas designated for higher density mixed-use development in the General Plan. See Section 4.4 for more detailed policies on bicycle and pedestrian movement in mixed-use areas. See Community Character & Placemaking Chapter goal CC-G-5 Public Works CR-P-16 Circulation Allow exceptions to LOS standards upon findings by the City Council that achieving the designated LOS would: a) Be technologically or economically infeasible; or b) Compromise the City’s ability to support other important policy priorities, including but not limited to: i. Promoting alternate modes of transportation; ii. Ensuring pedestrian, bicycle and automobile safety, comfort, and convenience; iii. Reducing VMT and GHG emissions; and iv. Preserving and enhancing character of the community. See Community Character & Placemaking Chapter policy CC-P-34 Public Works CR-P-19 Circulation Develop a prioritized program to implement measures to reduce traffic collisions at collision hot spots. Continue to monitor collision data for type, location, severity, and cause and update the collision reduction program as needed. See Circulation Chapter policy CR-P-2 Public Works Policies – Adaptive Traffic Control (ATCS) & Intelligent Traffic Systems (ITS) CR-P-20 Circulation Implement measures such as additional signal timing and synchronization, speed limit regulations, and ITS techniques to increase safety and reduce congestion. Maintain a pavement management system and maintenance program for all public roadways throughout the City. See Land Use & Economic Development Chapter Policy LU-P-14 Pavement Rehabilitation Projects Public Works 4.5.a Packet Pg. 78 Page 15 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT Construction of the Residential Area 7 Road Maintenance Project was completed in 2020. The project included pavement repair, curb ramp replacements, and slurry seal. The Diamond Bar Blvd Rehabilitation Project between Mountain Laurel and Clear Creek Canyon was completed in March 2020. Additionally, design and preparation of plans specifications were completed for the pavement rehabilitation project on Diamond Bar Boulevard where the previous phase of the project left off on Mountain Laurel Way and ending at Pathfinder Road. The new project consists of a 2” - 6” pavement grind/overlay and upgraded or newly constructed ADA curb ramps where the existing ramps do not meet current ADA standards. The bidding process for the construction work is scheduled for early 2021. Also applies to Circulation Chapter policy CR-P-43 Traffic Signal Battery Backup Project Battery backup units are a critical part of the City’s public safety efforts as they allow traffic signals to fully operate for a short period then operate on red flash for several hours in an emergency resulting in a power outage. The City implemented a multi-year program to install battery backup systems on the City’s 66 signalized intersections. With the installation of the last 11 battery backup systems, this program was completed in 2020. Also applies to Circulation Chapter policy CR-P-21 CR-P-21 Circulation On an ongoing basis, examine opportunities to avoid delay, spillover, or cut-through traffic onto Diamond Bar’s roadways through techniques such as adaptive traffic control systems along major corridors and traffic calming measures along cut-through routes that would reduce speeds and discourage drivers from electing to drive on them. Consider financial and technological feasibility and community priorities to determine whether and how strategies should be implemented. See Land Use & Economic Development Chapter Policy LU-P-14 and Circulation Chapter policy CR-P-20 Public Works Policies – Safety CR-P-22 Circulation Implement traffic calming measures to slow traffic on local and collector residential streets and prioritize these measures over congestion management where appropriate and feasible. See Community Character & Placemaking Chapter Policy CC-P-11 Public Works 4.5.a Packet Pg. 79 Page 16 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT CR-P-23 Circulation Maintain the integrity of existing residential areas and discourage cut-through traffic by retaining cul-de-sacs and implementing other traffic calming measures that promote safe driving at speeds appropriate to the surrounding neighborhood, particularly at Prospectors Road, Chaparral Drive, Sunset Crossing Road, Lycoming Street, and Washington Street. See Community Character & Placemaking Chapter Policy CC-P-11 Public Works Policies – Inter-Jurisdictional Coordination CR-P-26 Circulation As opportunities arise, coordinate with other jurisdictions, including neighboring cities, Los Angeles County, San Bernardino County, and Caltrans, on improvements to street segments common to the City of Diamond Bar and other jurisdictions. See Circulation Chapter policy CR-P-2 and Community Character & Placemaking Chapter policy CC-P-64 Cooperative Agreement with Caltrans for Traffic Detour During SR-57 Pavement Rehabilitation On August 24, 2020, Caltrans District 7 commenced a roadway resurfacing and restoration project along the State Route 57 (SR-57) freeway (the “Project”) for approximately 4.5 lane miles. The three- year project will cover both northbound and southbound lanes along SR-57 between the Orange County line towards Los Angeles County, where SR-57 merges with State Route 60 near Grand Avenue. Under California Streets and Highways Code Section 93, Caltrans is authorized to construct and maintain detours as may be necessary to facilitate the movement of traffic where state highways are closed or obstructed by construction or otherwise. The City of Diamond Bar roadways will be affected during Project-related traffic detours. The Project estimates 16 extended weekend closure detours (over 8 two-day weekends) for the duration of the project, which will be scheduled to be implemented during the low traffic hours. City staff and traffic consultants will be monitoring the traffic flow and adjusting the City traffic signals timing as needed to ensure a steady flow of traffic during the detours. The City and Caltrans negotiated a Traffic Detour Cooperative Agreement; the City will be reimbursed for the traffic monitoring and signal adjustment, as well as additional Sheriff’s services, as applicable. Per the Agreement and upon completion of the Project, Caltrans, at its costs, will restore the City streets impacted by the detours to their original condition before the detours. To achieve that goal, Caltrans, in coordination with the City staff, will evaluate the condition of streets before and after the Project. Public Works CR-P-27 Circulation Encourage improvements to regional routes and arterial streets to account for environmental, aesthetic, and noise concerns, as well as to provide adequate buffers to adjacent land uses. See Community Character & Placemaking Chapter policies CC-P-1 and CC-P-64 Public Works 4.5.a Packet Pg. 80 Page 17 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT CR-P-29 Circulation Solicit State and Federal funds to improve area freeways and local streets. See Community Character & Placemaking Chapter goal CC-G-5 and policy CC-P-64 Public Works PEDESTRIAN AND BICYCLE CIRCULATION Policies – Bicycle & Pedestrian Network CR-P-30 Circulation Use Figure 4-2: Proposed Bicycle Network as the overall guide for undertaking bikeway and pedestrian improvements in the community, with the Parks and Recreation Master Plan providing a more detailed implementation strategy. See Community Character & Placemaking Chapter policy CC-P-34 Public Works Policies – Safety CR-P-43 Circulation When planning capital improvement programs, ensure that projects incorporate measures that strengthen the protection of cyclists in bike lanes by implementing improvements such as increasing visibility of lane markings and signage, increasing bike lane widths, raising lanes, designing safer intersection crossings and turns, and buffering lanes from traffic wherever feasible, prioritizing bicycle lanes along arterials. See Circulation Chapter Policy CR-P-20 Public Works CR-P-45 Circulation Routinely review pedestrian and cyclist collision data for type, location, severity, and cause, and develop strategies to prevent these collisions. See Circulation Chapter policy CR-P-2 Public Works PUBLIC TRANSPORTATION Goals CR-G-13 Circulation Support the availability, efficiency, and effectiveness of public transit service. See Circulation Chapter policy CR-P-1 Public Works Policies CR-P-48 Circulation As opportunities arise, work with Foothill Transit to maintain and improve bus stops and shelters, as well as identify areas where service can be improved or expanded to increase system use. See Circulation Chapter policy CR-P-1 Public Works PARKING Policies CR-P-54 Circulation Incorporate criteria in the Development Code to allow reductions in parking requirements in exchange for VMT reduction measures. See Community Character & Placemaking Chapter policy CC-P-34 Public Works GOODS MOVEMENT Policies – Truck Routes 4.5.a Packet Pg. 81 Page 18 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT CR-P-60 Circulation Use Figure 4-4: Goods Movement as the guide for designating truck routes in the City. See Land Use & Economic Development Chapter policy LU-P-56 Public Works CR-P-62 Circulation Maintain truck routes with signage between industrial areas and freeway interchanges to discourage truck travel through residential neighborhoods, and provide truck route information to truck routing software providers. See Land Use & Economic Development Chapter policy LU-P-56 Public Works CR-P-64 Circulation Continue prohibiting trucks heavier than 5 tons from operating on designated residential streets, except for emergency, maintenance, residential moving trucks, and transit vehicles, to maintain pavement integrity. See Land Use & Economic Development Chapter policy LU-P-56 Public Works CR-P-65 Circulation Periodically review collision data for type, location, severity, and cause. Develop countermeasures for sites with recurrent truck- involved collisions. See Circulation Chapter policy CR-P-2 Public Works 4. Resource Conservation POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT RESOURCE CONSERVATION A conservation element is required to provide guidance for the conservation, development, and utilization of natural resources, including water quality and hydraulic force, forests, soils, rivers and other waters, harbors, fisheries, wildlife, minerals, and others as applicable to each jurisdiction. An open space element is intended to ensure that cities and counties recognize that open space land is a limited and valuable resource, and that they prepare and carry out open space plans to guide the comprehensive long-range preservation and conservation of open space land. The Resource Conservation Chapter provides policies to guide the City’s stewardship of its resources, ensuring the conservation and enhancement of open spaces, biological resources, water and air quality, and cultural resources. OPEN SPACE Goals RC-G-1 Resource Conservation Create and maintain a balanced open space system that will preserve scenic beauty and community identity, protect important biological resources, provide open space for outdoor recreation and the enjoyment of nature, conserve natural resources, and ensure public health and safety. The City worked with an environmental consultant (Michael Baker International) to complete a CEQA analysis for the proposed Canyon Loop Trail renovation project. This review will guide the project while respecting the condition of the existing environment. Parks & Recreation Policies RC-P-6 Resource Conservation Update, as appropriate, standards for planning, design, management, and maintenance of trails and pathways within parks, preserves, open space, and rights-of-way. During project review, staff ensures that the plant palette is diverse, Southern California native and drought-tolerant vegetation is utilized, as well as compliance with the City’s Water Efficient Landscaping Ordinance. Community Development WATER RESOURCES Goals 4.5.a Packet Pg. 82 Page 19 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT RC-G-7 Resource Conservation Protect waterways—including creeks, riverines, artesian springs, seeps, and wetlands—and watersheds in Diamond Bar from pollution and degradation as a result of urban activities. See Land Use & Economic Development Chapter policy LU-P-56 and Public Safety Chapter goal PS-G-4 Public Works RC-G-12 Resource Conservation Pursue methods to control, capture, and reuse stormwater runoff for the purposes of groundwater recharge and local water recovery. See Land Use & Economic Development Chapter policy LU-P-5 Public Works Policies – Water Quality RC-P-22 Resource Conservation Protect and, where feasible, enhance or restore the City’s waterways and drainages, preventing erosion along the banks, removing litter and debris, and promoting riparian vegetation and buffers. See Community Character & Placemaking Chapter policy CC-P-6 Public Works RC-P-23 Resource Conservation Ensure that post-development peak stormwater runoff discharge rates do not exceed the estimated predevelopment rate and that dry weather runoff from new development not exceed the pre- development baseline flow rate to receiving water bodies. See Land Use & Economic Development Chapter policy LU-P-56 Public Works AIR QUALITY Policies RC-P-24 Resource Conservation Encourage new development to minimize impacts on air quality through the following measures: a. Use of building materials and methods that minimize air pollution. b. Use of fuel-efficient heating equipment, and other appliances, such as water heaters, swimming pool heaters, cooking equipment, refrigerators, furnaces, boiler units, and low or zero-emitting architectural coatings. c. Use of clean air technology beyond what is required by South Coast Air Quality Management District (SCAQMD), leveraging State and local funding sources. • Building & Safety implements the California Green Building Code (CALGreen). Whenever a building permit is issued for construction, CALGreen requires the building inspector to verify the reduction of dust and volatile organic compounds (VOCs). Dust control measures include watering of dirt on projects that are moving earthwork and VOCs are limited in quantity by requiring materials with certified lower VOCs be used. • Through the implementation of the California Energy Code and CALGreen, more efficient equipment and reduced VOC’s are required respectively. The CA Energy Code requires highly efficient heating and cooling systems through requiring high seasonal energy efficiency ratings and energy efficient materials such as low-E (low emissivity) windows. The CA Energy Code also requires high efficacy lighting, certified cooktop hoods, and mostly instantaneous water heaters for new construction. CALGreen requires low emitting architectural coatings through limiting the VOC’s and requiring certified listed low-emitting products including paints and sealants. • CALGreen requires clean air within buildings including through requiring higher minimum efficiency reporting value (MERV) filters and minimum outdoor air circulation. Higher Community Development 4.5.a Packet Pg. 83 Page 20 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT filtration removes contaminants and outdoor air circulation reduces carbon dioxide levels within structures. RC-P-26 Resource Conservation Ensure that new development projects are designed and implemented to be consistent with the South Coast Air Quality Management Plan. Building & Safety follows various AQMD rules including requiring AQMD proof of notification before some projects are demolished, preventing wood burning fireplaces from being installed, and requiring notification of AQMD for char-broilers. Community Development RC-P-28 Resource Conservation Cooperate with the ongoing efforts of the U.S. Environmental Protection Agency (EPA), SCAQMD, the Southern California Association of Governments (SCAG), and the State of California Air Resources Board in improving air quality in the regional air basin. Building & Safety requires all construction projects to provide proper mechanical ventilation systems per the California Mechanical Code. The California Building Code would also limit the amount of hazardous materials on a site which could lead to further Toxic Air Contaminants. During construction, dust mitigation and erosion control are required and enforced by the building inspector on any construction project. The remainder of this work is conducted through the Public Works Department. Community Development RC-P-30 Resource Conservation For new or modified land uses that have the potential to emit dust, odors, or TACs that would impact sensitive receptors, require the business owners to obtain all necessary SCAQMD clearances or permits prior to business license or building permit issuance. Sensitive receptors include residences, schools, childcare centers, playgrounds, parks and other recreational facilities, nursing homes, hospitals, and other medical care facilities. The Public Works Department requires an erosion control plan to be provided prior to permit issuance which would include sandbags around the property and intermittent watering of a grading site. Prior to any demolition, the Building & Safety Division requires that AQMD to be notified before permits are issued. Community Development Public Works RC-P-33 Resource Conservation Require construction and grading plans to include State and AQMD-mandated measures to the maximum extent possible fugitive dust and pollutants generated by construction activities and those related to vehicle and equipment cleaning, fueling and maintenance as well as mono-nitrogen oxides (NOx) emissions from vehicle and equipment operations. Public Works implements all dust control measures during grading with assistance from Building & Safety during construction. See Land Use & Economic Development Chapter policy LU-P-56 Community Development Public Works CULTURAL AND HISTORIC RESOURCES Policies – Tribal Cultural Resources RC-P-46 Resource Conservation Conduct project-specific Native American consultation early in the development review process to ensure adequate data recovery and mitigation for adverse impacts to significant Native American sites. Ensure that City staff and local developers are aware of their responsibilities to facilitate Native American consultation under Senate Bill 18 and Assembly Bill 52. On September 22, 2020, the City sent notification letters via certified mail and email to the designated representatives of eight California Native American tribes to identify tribal cultural resources in or near the proposed 12.9-acre 11-lot residential subdivision project site located between the southern terminus of Crooked Creek Drive and the southern City limits and east of the SR-57 Freeway and Brea Canyon Road. Community Development 5. Public Facilities and Services 4.5.a Packet Pg. 84 Page 21 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT PUBLIC FACILITIES & SERVICES This Chapter sets forth the policy framework for the City to manage infrastructure and services, identify areas for improvement, and ensure that public utilities, services, and programs can meet the needs of the community into the future. PARKS & RECREATION Goals PF-G-1 Public Facilities & Services Maintain and expand the system of parks, recreation facilities, open spaces, and trails that meet the active and passive recreational needs of residents of all ages and abilities. The Parks and Recreation Department, along with Public Works Department, contracted renovations for an existing tennis court at Maple Hills Park to create four Pickleball courts for this ever- increasing sport. These courts are used daily by over a dozen participants and provide a healthy alternative for those who may not be able to play tennis. Parks & Recreation See Community Character & Placemaking Chapter policy CC-P-6 Public Works Policies – General PF-P-3 Public Facilities & Services Identify and pursue funding and financial resources to acquire land for parks and to continue providing high quality maintenance of parks, trails, and recreational facilities. See Community Character & Placemaking Chapter policy CC-P-6 Public Works PF-P-5 Public Facilities & Services Continue cooperative efforts with the Walnut Valley and Pomona Unified School Districts through joint use agreements for park and recreational facilities. The City Council adopted a revised Joint Use Agreement with the Walnut Valley Unified School District in November that provides updates, clearer language, and relevant improvements to the original document created in 1994. This document serves primarily as an agreement for the City to utilize space on school district property for programs, services, and activities. Parks & Recreation Policies – Parks & Recreation Facilities PF-P-12 Public Facilities & Services Routinely review existing funding mechanisms and seek new funding opportunities to support additional parks and recreation facilities and programs, such as State and federal grants, Park Bonds and property tax assessments, Community Facility Districts, and Lighting and Landscape Assessment Districts. See Community Character & Placemaking Chapter policy CC-P-6 Public Works PF-P-17 Public Facilities & Services Address the recreational needs of all children and adults, including persons with disabilities, seniors, and dependent adults, be addressed in recreational facility planning efforts. • During the COVID-19 pandemic, City staff revised the Athletic Facility Use and Allocation Policy to implement LA County Health Department guidance which ensures the health and safety requirements for the local non-profit youth sports organizations (i.e., AYSO or Diamond Bar Girls Softball) wishing to utilize City parks for league training and exercise. Parks & Recreation 4.5.a Packet Pg. 85 Page 22 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT This guidance is unique to each organization and allowed young athletes to return to a semblance of youth sports programming. • During the COVID-19 pandemic, the City partnered with other non-profit organizations to provide several hundred seniors with lunches and senior resource bags in order to share much needed supplies, support, and information for those who tend to not have internet access or local family to assist. UTILITIES Goals PF-G-6 Public Facilities & Services Ensure that public facilities and services, including water, wastewater, sewage, electricity, natural gas, and solid waste, are provided in a safe, efficient, and timely manner to meet the current and future needs of the city. Sewer Pump Stations Refurbishment A wastewater system master plan was prepared in 2019. In 2020, the County of Los Angeles Department of Public Works hired a consultant to design two of the pump stations that were assigned the highest priority for refurbishment in the master plan. The City is involved in the process to facilitate the progress and implementation of the design. Also applies to Public Facilities & Services Chapter policies PF-P-37 and PF-P-38 Public Works Policies – Water & Wastewater PF-P-37 Public Facilities & Services As opportunities arise, work with the Los Angeles County Public Works Department (LACPWD) and Los Angeles County Sanitation District (LACSD) to ensure that wastewater treatment conveyance systems and treatment facility capacity is available to serve planned development within Diamond Bar. See Public Facilities & Services Chapter goal PF-G-6 Public Works PF-P-38 Public Facilities & Services Continue to monitor and assess wastewater and sewer system operations to identify and subsequently address system deficiencies. See Public Facilities & Services Chapter goal PF-G-6 Public Works 6. Public Safety 4.5.a Packet Pg. 86 Page 23 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT PUBLIC SAFETY The purpose of this Chapter is to identify the natural and man-made public health and safety hazards that exist within the City, and to establish preventative and responsive policies and programs to m itigate their potential impacts, particularly in light of our unique environmental, seismic, and topographic conditions. This Chapter also addresses the excellent public safety services provided by the L.A. County Sheriff’s and Fire Departments, and endorses the continuation of the contract model of government for the continuation of these services. Lastly, the Public Safety Chapter addresses noise and serves to limit the exposure of the community to excessive noise levels. The Goals and Policies emphasize partnerships with local, regional and State agencies to ensure the City’s readiness for public safety threats through action plans and educational efforts. SEISMIC AND GEOLOGIC HAZARDS Goals PS-G-1 Public Safety Partner with the Los Angeles County Fire and Sheriff’s Departments in community education efforts aimed at preventing potential loss of life, physical injury, property damage, public health hazards, and nuisances from seismic ground shaking and other geologic hazards such as landslides and mudslides. With the third consecutive year of declining crime rates, the City and its public safety partners continue outreach efforts to residents on safety, including earthquake, fire, emergency preparedness topics, and most importantly the COVID-19 pandemic. The City’s public safety partners work in coordination with the City’s Public Information Division to communicate time sensitive information to residents through the City’s website, as well as the Neighborhood Watch Program. The City also distributes outreach materials via print and electronic media that focuses on public safety and emergency preparedness related topics, such as earthquake preparedness, as well as important and timely public health orders and social distancing guidelines. Also applies to Public Safety Chapter policy PS-P-5 and goal PS-G- 5 City Manager’s Office Policies PS-P-3 Public Safety Periodically update the grading standards to supplement the State and local building and construction safety codes with detailed information regarding rules, interpretations, standard specifications, procedures requirements, forms, and other information applicable to control excavation, grading, and earthwork construction, and provide guidelines for preparation of geotechnical reports in the city. See Land Use & Economic Development Chapter policy LU-P-56 Public Works PS-P-4 Public Safety Carry out a review of City-owned critical facilities that may be vulnerable to major earthquakes and landslides and develop programs to upgrade them. Diamond Bar Center Slope Stabilization Project The City became aware of concrete separations along the northern side of the Diamond Bar Center. A decision was made to take preventative measures to ensure long-lasting slope stability and prevent any potential risk to the facility. Therefore in 2020, the City conducted a geotechnical investigation and sampled the soil conditions of the northern slope at the facility. All geotechnical characterization and lab analysis of the subsurface soil conditions were complete. This data was utilized to prepare a formal soils Public Works 4.5.a Packet Pg. 87 Page 24 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT report, in preparation for the development of design plans, and project specifications. The preliminary design of a slope stabilization engineering solution was completed in late 2020. The design work is expected to be complete in 2021. Also applies to Public Safety Chapter policy PS-P-6 PS-P-5 Public Safety Develop a City-based public awareness/ earthquake preparedness program to educate the public about seismic hazards and what to do in the event of an earthquake. See Public Safety Chapter goal PS-G-1 City Manager’s Office PS-P-6 Public Safety Prevent and control soil erosion and corresponding landslide risks on public property and in conjunction with new private development through hillside protection and management. See Public Safety Chapter policy PS-P-6 Public Works FLOOD HAZARDS AND PROTECTION Goals PS-G-2 Public Safety Implement measures aimed at preventing the potential for loss of life, physical injury, property damage, public health hazards, and nuisances from the effects of a 100- year storm and associated flooding. The City is moving forward with updating its Natural Hazard Mitigation Plan (Plan) with the assistance of a Federal Emergency Management Agency (FEMA) grant. The Plan will include an all- hazards summary of potential risks to the City from earthquakes, fires, floods, severe storms, and other natural disasters. The Plan will provide information to assist the City in planning for 100-year floods, significant earthquakes, all with the ultimate goal of minimizing the loss of life and damage to property. The Plan, in concert with the City’s Emergency Operations Plan (EOP), can eventually be used to support resilient planning, mitigation, reconstruction strategies, and response efforts to climate conditions and incidents impacting the community. Also applies to Public Safety Chapter goals PS-G-3 and PS-G-8 and policies PS-P-7, PS-P-38, PS-P-39, and PS-P-44 City Manager’s Office Policies PS-P-7 Public Safety Work with the Federal Emergency Management Agency (FEMA) as needed to ensure that the City’s floodplain information is up to date with the latest available hydrologic and hydraulic engineering data. See Public Safety Chapter goal PS-G-2 City Manager’s Office FIRE HAZARDS Goals PS-G-3 Public Safety Partner with the Los Angeles County Fire Department and affiliated agencies to implement hazard mitigation plans and community See Public Safety Chapter goal PS-G-2 City Manager’s Office 4.5.a Packet Pg. 88 Page 25 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT education efforts aimed at preventing the potential for loss of life, physical injury, property damage, public health hazards, and nuisances from wildland and urban fires. Policies – General PS-P-14 Public Safety Educate the public about fire hazards and fire prevention. Work with the County of Los Angeles Fire Department and CAL FIRE to disseminate information on fire weather watches and fire risks and encourage all Diamond Bar residents to engage in risk reduction and fire preparedness activities. The Los Angeles County Fire Department maintains information on family fire preparedness plans and risk reduction measures such as vegetation management. The City continues to expand upon public education and outreach efforts to educate residents, including the COVID-19 pandemic, fire and weather-related hazards, through a variety of platforms such as City’s website, monthly DBConnection newsletter, public presentations, and informational videos. The information, in collaboration with City and Public Safety partners with Los Angeles County Sheriff and Fire Departments, is aimed at improving public safety preparedness efforts, increase resident awareness, and ensure compliance with State and County Public Health Orders. Also applies to Public Safety Chapter goal PS-G-9 and policies PS- P-18 and PS-P-42 City Manager’s Office PS-P-18 Public Safety Work cooperatively with the County of Los Angeles Fire Department, CAL FIRE, and fire protection agencies of neighboring jurisdictions to address regional wildfire threats. See Public Safety Chapter policy PS-P-14 City Manager’s Office HAZARDOUS MATERIALS AND OPERATIONS Goals PS-G-4 Public Safety Support the enforcement of applicable local, County, State, and federal regulations pertaining to the manufacture, use, transportation, storage and disposal of hazardous materials and wastes in the City with the primary focus on preventing injury, loss of life, and damage to property resulting from the potential detrimental effects (short- and long-term) associated with the release of such substances. NPDES Business Inspections Per the State Water Board’s NPDES MS4 permit, the City of Diamond Bar is required to perform stormwater inspections every 5 years for certain commercial/industrial facilities identified in the permit. Diamond Bar has roughly 200 applicable facilities which include restaurants, auto repair shops, and retail gasoline outlets, among others. The City prepared all required information and coordinated with a consultant, who performed these inspections on the City’s behalf. The inspector will visit each business in person, educate the business owners on permit requirements, and perform inspections identifying any NPDES compliance issues. The first round of inspections for about 100 businesses will be done between January – March 2021. Also applies to Resource Conservation Chapter goal RC-G-7 Public Works Policies 4.5.a Packet Pg. 89 Page 26 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT PS-P-28 Public Safety Promote public awareness and participation in household hazardous waste management, solid waste, and recycling programs. For additional policies related to household hazardous waste management, solid waste, and recycling programs, see Chapter 8: Community Health and Sustainability Chapter. The City’s contracted residential and commercial waste haulers continue to offer comprehensive waste collection and curbside recycling services citywide. Curbside recycling services include collection of green waste; bulky items; and household hazardous waste, including electronic waste, used oil, paint products, batteries, garden chemicals, household chemicals and hypodermic needles. The City also works with Los Angeles County Public Works to provide a Household Hazardous Waste (HHW) event in the City once a year in February. The HHW event takes most forms of electronic and hazardous waste including paint, batteries, and other toxic materials that are recycled and do not enter the waste stream. The City promotes the Los Angeles County Public Works HHW events throughout the year in addition to promoting the County’s hotline 1-888-CLEAN LA and their dedicated website. City Manager’s Office SHERIFF, FIRE, AND EMERGENCY SERVICES Goals PS-G-5 Public Safety Maintain safety services that are responsive to citizens’ needs to ensure a safe and secure environment for people and property in the community. See Public Safety Chapter goal PS-G-1 City Manager’s Office PS-G-6 Public Safety Support community-based policing partnerships to enhance public awareness of crime prevention and strengthen the relationship between the Los Angeles County Sheriff’s Department and neighborhoods throughout the city. The City continued to offer its popular “Let’s Talk Public Safety” outreach efforts geared to educating and informing residents about emergency preparedness, fire safety, and crime prevention in early 2019. This is a collaboration between the City, the Los Angeles County Sheriff’s Department, and the Los Angeles County Fire Department, and is an extension of the existing Neighborhood Watch and Business Watch programs. The program also includes monthly “Coffee with a Cop” meetings with law enforcement, safety blogs and information tips. However, this program ceased physical meetings during the pandemic, with the goal to bring back once public health guidelines allow for in-person meetings. Also applies to Public Safety Chapter policy PS-P-30 City Manager’s Office PS-G-7 Public Safety Provide effective emergency preparedness and response programs. See Public Safety Chapter policy PS-P-37 City Manager’s Office Policies PS-P-30 Public Safety Continue to promote the establishment of neighborhood watch and business watch programs to encourage community participation in the patrol of neighborhoods. See Public Safety Chapter goal PS-G-6 City Manager’s Office 4.5.a Packet Pg. 90 Page 27 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT PS-P-35 Public Safety Work cooperatively with the Los Angeles County Fire Department, CAL FIRE, and fire protection agencies of neighboring jurisdictions to ensure that all portions of the Planning Area are served and accessible within an effective response time. See Circulation Chapter policy CR-P-2 Public Works PS-P-37 Public Safety Maintain area-wide mutual aid agreements and communication links with adjacent governmental authorities and other participating jurisdictions. The City continues to expand upon its emergency preparedness and response capabilities and staff training through live and simulated Emergency Operations Center (EOC) activations and exercises. In combination with frequent testing and exercises, the dedicated EOC provides the City with added flexibility to coordinate and respond to emergencies, provide redundant communications to public safety agencies, and enable added communications to residents. City Hall also has a backup power generator to ensure critical systems are operational in the event of a prolonged emergency outage, with redundant communications capabilities including the Sheriff’s Department and County Office of Emergency Management (OEM). Since the onset of the COVID-19 pandemic in March, the City EOC has been activated virtually to monitor impacts to the City and coordinate response efforts with County Office OEM. Also applies to Public Safety Chapter goal PS-G-7 and policies PS- P-40, PS-P-41, and PS-P-43 City Manager’s Office EMERGENCY AND DISASTER MANAGEMENT Goals PS-G-8 Public Safety Use the Local Hazard Mitigation Plan and Emergency Operations Plan to address mitigation and response for local hazards, including seismic hazards, flood hazards, fire hazards, hazardous materials incidents, and hazardous sites, and to plan for the protection of critical facilities (i.e., schools, hospitals), disaster and emergency response preparedness and recovery, evacuation routes, peak load water supply requirements, and minimum road width and clearance around structures. See Public Safety Chapter goal PS-G-2 City Manager’s Office PS-G-9 Public Safety Conduct emergency and disaster management planning in a collaborative manner with State and local agencies and neighboring jurisdictions, while striving for self-sufficiency in City-level emergency response. See Public Safety Chapter policy PS-P-14 City Manager’s Office Policies PS-P-38 Public Safety Maintain, review, and update Diamond Bar’s Local Hazard Mitigation Plan as needed to take into account new hazard See Public Safety Chapter goal PS-G-2 City Manager’s Office 4.5.a Packet Pg. 91 Page 28 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT conditions in the Planning Area and new emergency management techniques. PS-P-39 Public Safety Adopt, implement and update as necessary the Local Hazard Mitigation Plan to develop strategies to address changing risks from flood, drought, fire, landslides, seismic activity, hazardous materials, and other potential hazards, including strategies related to monitoring, emergency preparedness, development policies, conservation, vulnerable populations, and community resilience. See Public Safety Chapter goal PS-G-2 City Manager’s Office PS-P-40 Public Safety Continue to coordinate the City’s emergency preparedness and response plans and operations with the State Office of Emergency Management, Los Angeles County, schools, and other neighboring jurisdictions. See Public Safety Chapter policy PS-P-37 City Manager’s Office PS-P-41 Public Safety Maintain and expand as necessary community emergency preparedness resources including personnel, equipment, material, specialized medical and other training, and auxiliary communications. See Public Safety Chapter policy PS-P-37 City Manager’s Office PS-P-42 Public Safety Continue to disseminate public information and alerts regarding the nature and extent of possible natural and manmade hazards, resources identifying measures residents and businesses can take to prepare for and minimize damage resulting from these hazards, citywide response plans, and evacuation routes. • The City and its public safety partners continue outreach efforts on safety topics, including earthquakes, wild fires, weather-related impacts, and emergency preparedness. Information and education resources are made available to residents and businesses through a variety of print and electronic platforms, including the City’s monthly newsletter- Diamond Bar Connection and City website. • The City continues to promote registration for its emergency alert system for residents and businesses to receive time- sensitive notices by email, text or voicemail regarding emergency situations, such as evacuations or roadway closures. • In response to the Coronavirus Pandemic (COVID-19), a dedicated resource hub was created on the City web to provide COVID-19 prevention and education, information regarding temporary changes to City operations, virtual programs and meetings, business sector closures and regulations and the City’s Business Recovery Program. Additionally, information was distributed to residents and businesses via print, electronic notices and signage posted at City facilities. Public Information 4.5.a Packet Pg. 92 Page 29 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT See Public Safety Chapter policy PS-P-14 City Manager’s Office PS-P-43 Public Safety Require all City staff to be adequately trained to respond to emergency situations, and conduct regular emergency preparedness drills with local organizations including the Los Angeles County fire and Sheriff’s departments. See Public Safety Chapter policy PS-P-37 City Manager’s Office PS-P-44 Public Safety Leverage pre- and post-disaster assistance programs to support resilient planning, mitigation, and reconstruction strategies that consider future climate conditions, such as the California Governor’s Office of Emergency Services’ Hazard Mitigation Grant Program and California Disaster Assistance Act. See Public Safety Chapter goal PS-G-2 City Manager’s Office NOISE Policies PS-P-51 Public Safety Coordinate with the Union Pacific Railroad and other agencies and private entities to consider the implementation of a railroad quiet zone and other methods of reducing railroad noise impacts on surrounding noise-sensitive uses along the Union Pacific Railroad line adjacent to the city. Lemon Ave Railroad Quiet Zone The City has been working with the City of Industry and Union Pacific Railroad (UPRR) to establish a quiet zone on Lemon Ave and the railroad intersection area. In a quiet zone, railroads have been directed to cease the routine sounding of their horns when approaching public highway-rail grade crossings. An agreement with UPRR was developed and is anticipated to be signed in 2021 for the design and construction of the quiet zone establishment pre- requisites. The City of Industry will be the lead agency on this project. Public Works 4.5.a Packet Pg. 93 Page 30 of 36 7. Community Health & Sustainability POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT COMMUNITY HEALTH & SUSTAINABILITY The Goals and Policies in this Chapter identify strategies to facilitate healthy and active lifestyles, social connections and celebrating diversity, access to healthy food, and climate change resilience. Many of these strategies could be incorporated into existing or future City programs and Development Code standards. ACTIVE LIFESTYLE Policies CHS-P-2 Community Health & Sustainability As resources become available and appropriated through the municipal budget process, improve signs directing residents and visitors to public parks and recreational facilities from all parts of the community. Integrate parks and recreation signage with bikeway and pedestrian-oriented signage systems throughout Diamond Bar. The Parks and Recreation Department implemented the Healthy DB program which encourages residents to participate and complete in monthly healthy challenges. This program encourages residents to utilize City parks or their own homes to discover new opportunities that promote well-rounded health and a sense of comradery. Parks & Recreation CHS-P-3 Community Health & Sustainability Promote physical activity and active transportation programs through events sponsored by the City, particularly the Parks & Recreation Department. During the COVID-19 pandemic, the City created a virtual recreation webpage to encourage social distancing while continuing to actively participate in Parks and Recreation programs, events, and services. These events included exercise classes, cooking demonstrations, and Tiny Tot educational experiences to name a few. Parks & Recreation SOCIAL CONNECTION Policies CHS-P-7 Community Health & Sustainability Continue to support and promote citywide events that integrate families, schools, and the greater community. Although many events in 2020 were virtual, the Parks and Recreation Department continued to provide community-wide special events such as Forts for the Fourth, pumpkin carving contests, and holiday decoration contests. These events created a sense of community pride and well-being during the pandemic. Parks & Recreation PUBLIC HEALTH AND ENVIRONMENTAL JUSTICE Policies CHS-P-29 Community Health & Sustainability Incorporate noise mitigation measures, which could include buffers, noise barriers, or natural open space, and vegetation, between new sensitive uses such as residential units and schools, and major noise polluters such as SR-57 and SR-60, the Metrolink Riverside rail line, and heavy industry. See Community Character & Placemaking Chapter Policy CC-P-11 Public Works CHS-P-30 Community Health & Sustainability Support a better informed and civically engaged community by making information available both in print and electronic format, and, to the extent possible, provide this information in the languages predominantly spoken in the community. • The City continues to use a variety of print, electronic and online communication tools to provide information about local and regional programs and services that may affect resident quality of life. The City distributes information to residents via the City website, electronic newsletters, social media Public Information 4.5.a Packet Pg. 94 Page 31 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT platforms, the City’s printed monthly newsletter (Diamond Bar Connection), and virtual or in-person presentations. • The City continues to identify sectors of the community that are not being reached via electronic communication methods as they do not utilize the internet or social media platforms and prefer traditional print media, specifically our older adult population. To address this as part of the Coronavirus Pandemic (COVID-19) outreach, resource information was translated into multiple languages and mailed out in a postcard format to these households. In addition, a Senior Resource phone line was established to provide recorded information identifying food and medical resources aimed at the City’s older adult population. • In response to COVID-19 safety guidelines restricting in- person gatherings, the City has transitioned all City Council and Commission meetings to a teleconference format to ensure public participation. CLIMATE CHANGE AND GREENHOUSE GASES Goals CHS-G-14 Community Health & Sustainability Encourage waste reduction and diversion practices to meet State targets and reduce GHG emissions. The City is compliant with Assembly Bill 1594, which regulates diversion credits associated with the use of Green Waste as Alternative Daily Cover beginning January 1, 2020. Alternative Daily Cover (ADC) means cover material other than earthen material placed on the surface of the active face of a municipal solid waste landfill at the end of each operating day to control vectors, fires, odors, blowing litter, and scavenging. The City’s residential and commercial waste haulers had zero green waste reported as ADC in 2019. The Green Waste collected from residents and businesses is processed for composting materials and diverted from the landfills. City Manager’s Office Policies – Energy Efficiency & Conservation CHS-P-39 Community Health & Sustainability Support Southern California Edison (SCE) and Southern California Gas Company's (SoCalGas) efforts to increase public awareness of energy conservation technology and best practices. The City has partnered with the San Gabriel Valley Council of Governments (SGVCOG) and the Southern California Regional Energy Network (SoCalREN) to increase public awareness of energy conservation technologies and best practices from Southern California Edison and the Gas Company. Information is distributed through the City’s Envirolink newsletter, as well as direct communication from partner agencies and utility providers. City Manager’s Office CHS-P-44 Community Health & Sustainability Promote energy conservation and retrofitting of existing buildings through the implementation of the Green Building Codes. The Building & Safety Division implements CALGreen by requiring all construction projects to meet State requirements. This is done Community Development 4.5.a Packet Pg. 95 Page 32 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT through requiring all waste hauling to be by the City’s franchise hauler or to a recycling facility, requiring low emitting vehicle parking for new commercial projects, limiting VOCs, inspecting erosion control, and requiring lowering water usage in plumbing. Policies – Waste Reduction & Recycling CHS-P-46 Community Health & Sustainability In order to achieve compliance with the source reduction goals set forth under Assembly Bill (AB) 939 amendments thereto, incorporate solid waste diversion goal performance standards into the contracts with the City’s franchise waste haulers, and enforce the City’s Construction and Demolition Waste Ordinance. The City made significant tonnage improvements to meet the State Recycling mandates, including AB1826, aimed at diverting organic food waste from the landfills. The City will continue outreach efforts to ensure large generators including Diamond Bar schools and large grocery stores are in compliance with State recycling laws. The City will continue to build on the successful implementation of food waste diversion programs, with targeted outreach by providing technical assistance for businesses wishing to start a food recycling, recovery, or donation program. Eventually, the program will be expanded to include residential accounts as directed by CalRecycle and in compliance with future State laws. Also applies to Community Health & Sustainability Chapter policy CHS-P-50 City Manager’s Office CHS-P-47 Community Health & Sustainability Reduce the disposal of household hazardous wastes in landfills through continued cooperation with waste pick-up service providers, the County Sanitation Districts, and the Los Angeles County Department of Public Works in the provision of curbside pick-up and annual household waste round up events. The City’s contracted residential and commercial waste haulers continue to offer comprehensive waste collection and curbside recycling services citywide. Curbside recycling services include collection of green waste; bulky items; and household hazardous waste, including electronic waste, used oil, paint products, batteries, garden chemicals, household chemicals and hypodermic needles. The City also works with Los Angeles County Public Works to provide a Household Hazardous Waste (HHW) event in the City once a year in February. The HHW event takes most forms of electronic and hazardous waste including paint, batteries, and other toxic materials that are recycled and do not enter the waste stream. The City promotes the Los Angeles County Public Works HHW events throughout the year in addition to promoting the County’s hotline 1-888-CLEAN LA and their dedicated website. Also applies to Community Health & Sustainability Chapter policy CHS-P-48 City Manager’s Office CHS-P-48 Community Health & Sustainability Continue to promote the safe disposal of household hazardous waste through public education and incentives. See Community Health & Sustainability Chapter policy CHS-P-47 The City’s contracted residential and commercial waste haulers continue to offer comprehensive waste collection and curbside City Manager’s Office 4.5.a Packet Pg. 96 Page 33 of 36 POLICY # CHAPTER GOALS & POLICIES STATUS DEPARTMENT recycling services citywide. Curbside recycling services include collection of green waste; bulky items; and household hazardous waste, including electronic waste, used oil, paint products, batteries, garden chemicals, household chemicals and hypodermic needles. Information on these programs is distributed by the haulers, as well as City resources including website, social media, mail and email distribution. Also applies to Community Health & Sustainability Chapter policy CHS-P-52 CHS-P-50 Community Health & Sustainability Encourage generators of edible food to have contracts or agreements with food rescue organizations to minimize edible food from being disposed of or destroyed. See Community Health & Sustainability Chapter policy CHS-P-46 City Manager’s Office CHS-P-52 Community Health & Sustainability Collaborate with the City’s contract waste haulers to educate and encourage residents and businesses about waste reduction strategies. See Community Health & Sustainability Chapter policy CHS-P-48 City Manager’s Office Policies – Climate Change Resiliency CHS-P-57 Community Health & Sustainability Encourage water conservation, drought-tolerant landscaping and the use of greywater and reclaimed and recycled water, where appropriate, with a view to reducing water use. During project review, staff ensures that the plant palette is drought- tolerant vegetation to minimize irrigation and reduce the area of turf and sod ground cover planting. Community Development 8. Housing – 2013-2021 Housing Element Program Evaluation PROGRAM # OBJECTIVES STATUS HOUSING The Housing Element, which has been certified by the California Department of Housing and Community Development (HCD), identifies and makes provisions for existing and future housing needs. While most of these enabling policies require the participation of the private sector, the City also actively participates in implementation by budgeting a portion of its annual Community Development Block Grant (CDBG) allocation to fund the City’s Home Improvement Program (HIP). The HIP provides zero-interest deferred loans of up to $20,000 to eligible low-income households to perform essential home repairs and improvements. Low-income households are also eligible to participate in the Los Angeles County Community Development Commission’s CDBG-funded Home Ownership Program (HOP) for first-time homebuyer assistance. The City filed the Housing Element Annual Progress (APR) with HCD and Office of Planning and Research (OPR) on March 26, 2021, which outlined progress on the implementation of the adopted 2013-2021 Housing Element. The table below summarizes the 2013-2021 Housing Element housing programs offered through the Community Development Department along with program objectives, accomplishments, and implementation status. 1. Residential Neighborhood Improvement Program Proactive program conducts neighborhood inspections on a regular basis throughout the entire city/focused code enforcement linked with rehabilitation assistance to correct code violations. The City continues to operate the code enforcement program. This program is successful and is being continued. 4.5.a Packet Pg. 97 Page 34 of 36 PROGRAM # OBJECTIVES STATUS 2. Home Improvement Program Improve neighborhoods evidencing deferred maintenance through property maintenance and rehab. Provide minor repair and rehabilitation to 10 units annually. The HIP is continued at available funding levels. Five (5) building permits for new single-family residences totaling 49,645 sq. ft. and twenty-four (24) building permits for residential additions totaling 14,005 sq. ft. were issued in 2020. 3. Single-Family Rehabilitation Program Provide ongoing advertisement of loans available through the County for qualified homeowners. The program has been merged with Program 2 (HIP). 4. Section 8 Rental Assistance Program Direct eligible households to the County Section 8 program. The City continues to coordinate with the County on the Section 8 program. The program is being continued. 5. Preservation of Assisted Housing Preserve 100 percent of the 149 low- and moderate-income units in The Seasons Apartments. The Seasons Senior Apartments continued its affordability covenant throughout the planning period. This program will be continued. 6. Mobile Home Park Preservation Support preservation of City's two mobile home parks as important affordable housing resources. Maintain residential zoning, and enforce State closure requirements as necessary. Zoning for mobile home parks is being continued. No proposals to close the parks were submitted. The program is being continued. 7. First-time Homebuyer Assistance Programs Advertise County's Home Ownership Program (HOP) and Mortgage Credit Certificate (MCC) and provide information to interested homebuyers. In addition, the City will work with realtors to make them aware of these programs. Continue to provide information on this County program. The program is being continued. 8. Senior and Workforce Housing Development Identify and evaluate sites suitable for new senior and workforce housing. The City will post information on the City website during the first year of the planning period regarding the City's interest in assisting in the development of senior and workforce housing, provide information on available regulatory and financial incentives, and assist developers in applying for funds. The City will also contact local colleges and universities annually to identify potential partnership opportunities for affordable housing. This program is being continued. 9. Land Use Element and Zoning Maintain adequate sites commensurate with the Regional Housing Needs Allocation (RHNA). The City has maintained adequate sites for housing development at all income levels and ensure compliance with No Net Loss requirements. This program is being continued. 10. Mixed Use Development The City will prepare a handout and marketing materials encouraging mixed use development where appropriate and make it available to interested developers during the first year of the planning period. A review of potential areas that may be appropriate for mixed-use development will be initiated by 2015 as part of a comprehensive General Plan update. In December 2019, the City adopted the Comprehensive General Plan Update that created community visions and blueprint for growth and development in the City through 2040. This program is being continued. 11. Second Units Continue to encourage construction of accessory dwelling units pursuant to the provisions of its Accessory Dwelling Unit (ADU) Ordinance, and make an informational handout available for distribution at the public counter. On May 2, 2017, the City approved an amendment to the municipal code pertaining to accessory dwelling units (ADUs) to satisfy all of the requirements of Government Code Sections 65852.150-65852.2. The City is in the process of amending the municipal code section pertaining to ADUs consistent with current ADU law per AB 3182 (2020) and SB 13, AB 68, 4.5.a Packet Pg. 98 Page 35 of 36 PROGRAM # OBJECTIVES STATUS AB 881, AB 587, AB 670, and AB 671 (2019). The City has been processing new ADUs in accordance with the new State laws and continues to encourage ADUs. This program is being continued. Seven (7) building permits for ADUs totaling 3,976 sq. ft. were issued in 2020. 12. Emergency Shelters and Transitional/ Supportive Housing Continue to facilitate emergency shelters and transitional/supportive housing, and continue participating in the San Gabriel Valley Council of Governments (SGVCOG) homeless study to address homelessness. This program is being continued. 13. Redevelopment of Underutilized Sites Encourage interested property owners to pursue redevelopment of underutilized properties though the provision of incentives and concessions. The City has continued to encourage the redevelopment of underutilized sites. This program is being continued. 14. Affordable Housing Incentives/ Density Bonus Encourage the production of affordable housing through the use of density bonus, and provide a handout summarizing the benefits and requirements of affordable housing incentives/density bonus provisions. This program is being continued. 15. Efficient Project Processing Continue to offer streamlined development processing, and periodically review departmental processing procedures to ensure efficient project processing. The City continues to offer efficient permit processing. This program is being continued. 16. Fair Housing Program Continue to promote fair housing practices, provide educational information on fair housing to the public, and cooperate with the Greater Los Angeles Apartment Association in providing fair housing information to landlords and at libraries, senior centers, recreation centers, and Social Security and employment offices. Continue to refer fair housing complaints to the San Gabriel Valley and Long Beach Fair Housing Foundation, and maintain an open dialogue with the Foundation regarding the nature of complaints received. This program is being continued. 17. Reasonable Accommodation for Persons with Disabilities Continue to implement reasonable accommodation procedures for persons with disabilities in compliance with SB 520. This program is being continued. 4.5.a Packet Pg. 99 Page 36 of 36 Climate Action Plan CAP POLICIES AND ACTIONS IMPLEMENTATION GENERAL PLAN GOALS & POLICIES CLIMATE ACTION PLAN (“CAP”) A Climate Action Plan is a comprehensive inventory of specific activities a public agency should undertake to reduce greenhouse gas (“GHG”) emissions that originate within its jurisdiction. The City of Diamond Bar adopted a Climate Action Plan concurrently with the General Plan Update to document how it will be able to reduce its GHG emissions in compliance with State mandates and goals to the year 2040, which is the horizon year for the General Plan Update. The table below lists the General Plan Update goals and policies that have been implemented to reduce GHG emissions, quantifies emissions reductions, and explains how these policies and actions will be implemented and organized according to the following categories: 1. Pedestrian Improvements and Increased Connectivity; 2. Bikeway System Improvements; 3. Traffic Calming; 4. Electric Vehicle Infrastructure; 5. Parking Facilities and Policies; and 6. Transportation Improvements. 1. Pedestrian Improvements and Increased Connectivity The General Plan Update includes policies that create more walkable, livable neighborhoods by expanding the multi- modal transportation system and creating a safe, pedestrian-oriented environment. Providing an improved pedestrian network and increasing connectivity encourages people to walk more and results in people driving less, causing a reduction in vehicle miles traveled (VMT). LU-P-9: See status above. LU-P-14: See status above. CC-G-5: See status above. CC-P-4: See status above. CC-P-7: See status above. CC-P-9: See status above. CC-P-64: See status above. 2. Bikeway System Improvements The General Plan Update provides strategies for maximizing multi-modal accessibility to and connectivity within mixed use areas, including the Metrolink Station and new Town Center. With the total bicycle improvements listed in the General Plan Update, there would be approximately 2.4 miles of bike lanes per square mile. Diamond Bar currently has approximately 2,840 people per square miles. This corresponds to a 0.06 percent reduction in VMT emissions. LU-P-14: See status above. CC-G-5: See status above. CC-P-7: See status above. CR-G-2: See status above. CR-P-30: See status above. CR-P-43: See status above. 3. Traffic Calming A 0.25 percent reduction in VMT was assumed to occur from the traffic calming improvements to make streets safer and more comfortable for pedestrian travel. Traffic calming devices include roundabouts, corner bulb-outs, speed cushions, surface textures, raised pavement, road narrowing, and other devices that encourage people to drive more slowly or to walk or bike instead of using a vehicle, especially for short trips in and around residential neighborhoods. CR-P-4: See status above. CR-P-21: See status above. CR-P-22: See status above. CR-P-23: See status above. 4. Electric Vehicle Infrastructure A 0.05 percent reduction in VMT was assumed to occur from installation of electric vehicle infrastructure, which will encourage Diamond Bar residents, businesses, and the City vehicle fleet to switch to clean fuel and electric vehicles in order to reduce energy use and cost and transportation related GHG emissions. N/A 5. Parking Facilities and Policies Parking policies reflect both the necessity of providing for adequate and appropriately located vehicle and bicycle parking in existing and new development, and priorities related to safety, urban design, and transportation management. Reduced parking standards and other policies reducing parking availability have an estimated 5 to 12.5 percent VMT reduction. Conservatively assuming the effect of General Plan parking reduction strategies would result in the lower end of VMT reduction, the cumulative reduction from implementations would result in a 5 percent VMT reduction. N/A 6. Transportation Improvements Transit service can provide an alternative to automobile travel and is a critical mode of transportation for those who cannot drive or do not have access to a vehicle. The General Plan policies support Metrolink ridership by improving bus, bicycle, and pedestrian connections to the station and by introducing Transit-Oriented Mixed-Use development around the station. Conservatively assuming the combined effect of these strategies, summing the low end of the VMT reduction ranges gives a 0.62 percent reduction in VMT emissions. CR-G-13: See status above. CR-P-48: See status above. 4.5.a Packet Pg. 100 Agenda #: 4.6 Meeting Date: April 6, 2021 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: SECOND AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT WITH LANCE, SOLL & LUNGHARD, LLP CPA'S FOR AUDIT SERVICES THROUGH THE COMPLETION AND AUDIT OF THE FINANCIAL REPORTS FOR FISCAL YEAR ENDING JUNE 30, 2025. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: Approve, and authorize the Mayor to sign, the Second Amendment to the Consultant Services Agreement with Lance, Soll & Lunghard, LLP CPA's for auditing services. FINANCIAL IMPACT: This Second Amendment would increase the total not-to-exceed compensation under the Agreement by $192,789, with the annual cost for FY 21/22 estimated at $36,314. The cost for each following year would be increased by 3 percent. Sufficient funds will be included in the subsequent Finance Department annual budgets to cover the cost of such services. BACKGROUND/ANALYSIS: The City is required to engage the services of an outside, independent audit firm to audit the books and records of the City at the close of each fiscal year. This is required in order to provide the public and its constituents a comprehensive financial report that presents complete, accurate and understandable information about the City’s financial condition. Lance, Soll & Lunghard LLP, CPA’s has provided audit services to the City under the current contract for the last six years. On May 19, 2020, the City Council approved the First Amendment extending the original term through completion of the financial reports for FY ending June 30, 2020. Over the years, Lance, Soll & Lunghard LLP has 4.6 Packet Pg. 101 provided exceptional service to the City, and has worked well with the City Council, Audit Subcommittee and City Staff. Based on this past perfo rmance, it is recommended that the City Council extend the existing contract with Lance, Soll & Lunghard, LLP, CPA’s professional audit services an additional five years through completion of the financial reports for FY 24/25. LEGAL REVIEW: The City Attorney has reviewed and approved the amended agreement as to form. PREPARED BY: REVIEWED BY: Attachments: 1. 4.6.a LSL CPA - Second Amendment to Agreement 4.6 Packet Pg. 102 1450826.1 SECOND AMENDMENT TO CONSULTANT SERVICES AGREEMENT (Lance, Soll & Lunghard, LLP) This Second Amendment to Consultant Services Agreement (“Second Amendment”) is made and entered into as of April 6, 2021, by and between the City of Diamond Bar, a municipal corporation ( “City”), and Lance, Soll & Lunghard, LLP CPA’s, a California limited liability company (herein referred to as the “Consultant”) with reference to the following: A. The City and the Consultant entered into that certain Consultant Services Agreement dated as of April 7, 2015, which is incorporated herein by this reference (the “Original Agreement”); and B. The City and Consultant entered into a First Amendment to the Original Agreement dated May 19, 2020, which is incorporated herein by this reference (“First Amendment), which First Amendment and Original Agreement are collectively referred to herein as the “Agreement”; and C. The City and the Consultant desire to amend, modify, amend and supplement certain portions of the Agreement. NOW, THEREFORE, the parties hereby agree as follows: 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement. 2. Revised Scope of Services. The Scope of Services, Exhibit "A" to the Original Agreement and First Amendment, is hereby amended, modified and supplemented to include the services described on Exhibit "A" attached hereto and incorporated herein by this reference. 3. Term. The Term of the Original Agreement as set forth in Section 2 therein was from April 7, 2015 to the completion and audit of the financial reports for the Fiscal Year ending June 30, 2019. This First Amendment extended the Term up to and including the completion and audit of the financial reports for Fiscal Year ending June 30, 2020. This Second Amendment extends the Term up to and including the completion and audit of the financial reports for Fiscal Year ending June 30, 2025. 4. Compensation. The total not-to-exceed compensation set forth in Section 3 of the Original Agreement was the sum of one hundred sixty-four thousand six hundred and thirty-five dollars ($164,635). The First Amendment increased that amount by thirty-five thousand two hundred and fifty-five dollars ($35,255) for a total not-to-exceed compensation amount of one hundred ninety-nine thousand eight hundred and ninety dollars ($199,890). 4.6.a Packet Pg. 103 1450826.1 2 That amount is further amended and increased by this Second Amendment by one hundred ninety-two thousand seven hundred and eighty-nine dollars ($192,789) for a new not-to- exceed total compensation amount in the sum of three hundred ninety two thousand six hundred and seventy nine dollars ($392,679), which amount may not be exceeded without prior written authorization by the City. 5. Integration. This Second Amendment and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein, and supersede all negotiations with respect hereto. This Second Amendment amends, as set forth herein, the Original Agreement and except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this Second Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this Second Amendment shall control. IN WITNESS hereof, the parties enter into this Second Amendment on the year and day first above written. “CONSULTANT” “CITY” Lance, Soll & Lunghard, LLP CPA’s CITY OF DIAMOND BAR *By: By: Nancy A. Lyons, Mayor Printed Name: Title: *By: Printed Name: Title: ATTEST: Kristina Santana, City Clerk APPROVED AS TO FORM: David DeBerry, City Attorney 4.6.a Packet Pg. 104 1450826.1 EXHIBIT “A” ADDITIONAL SCOPE OF SERVICES [Behind this page.] 4.6.a Packet Pg. 105 March 18, 2021 City of Diamond Bar Dianna Honeywell, Finance Director 21810 Copley Drive Diamond Bar, CA 92765 Lance, Soll & Lunghard, LLP is pleased to respond to your request for a five-year extension. As a leader in the field of governmental accounting and auditing, we appreciate this opportunity given to us to continue to provide you our best service. Because of our extensive public sector experience, dedication to excellence and determination to retain the brightest and most talented professionals, we are certain that Lance, Soll & Lunghard, LLP is the most qualified accounting firm to continue to provide professional auditing services to the City of Diamond Bar. For the one- year extension, we will continue to provide our services with the standard 3% increase as previously agreed to the existing contract. The services and fees for fiscal year ending June 30, 2021, 2022, 2023, 2024, and 2025 would be as follows:  Perform a financial audit of the City of Diamond Bar in accordance with Generally Accepted Government Auditing Standards. A CAFR will be prepared and word processed by LSL. The CAFR will be in full compliance with all current GASB pronouncements. LSL will render its auditors’ report on the basic financial statements, which will include both Government-Wide Financial Statements and Fund Financial Statements. The audit firm will also apply limited audit procedures to Management’s Discussion and Analysis and required supplementary information. LSL understands that we will prepare the financial section of the City’s CAFR. (FY 2020 price was $27,750): FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 28,583$ 29,440$ 30,323$ 31,232$ 32,170$  If required, Perform a single audit on the expenditures of federal grants in accordance with OMB Uniform Audit Requirements for Federal Awards. In addition, LSL will assist the City with the annual filing of the Single Audit report with the Federal Audit Clearing House. (FY 2020 price was $3,385 – no single audit required in FY 2020) FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 4,244$ 4,371$ 4,502$ 4,637$ 4,776$ Quoted price is for one program, each additional major program is $1,500  Issue a separate “management letter” that includes a report on the City’s internal control over financial reporting in addition to recommendations for improvements in internal control, accounting procedures and other significant observations that are considered to be non-reportable conditions. Price: included with financial audit 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022 An Association of Independent Accounting Firms 4.6.a Packet Pg. 106  Perform agreed-upon audit procedures pertaining to the City’s Appropriations Limit Worksheet and render a letter, annually, to the City regarding compliance. Price: included with financial audit  Prepare the City’s State Controller’s Report annually. (FY 2020 price was $3,385) FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 3,487$ 3,591$ 3,699$ 3,810$ 3,924$  LSL will be available for occasional consultation throughout the year as a financial resource for the City of Diamond Bar and will be available for additional work as required. This proposal describes the benefits your organization would receive from Lance, Soll & Lunghard, LLP. We are committed to provide the services presented in our proposal in accordance with the timetable specified in your request for proposal. This proposal is a firm and irrevocable offer for a period no less than 90 calendar days from the date of submittal. For purposes of this proposal, Deborah A. Harper, Partner is authorized to make representations for our firm. I can be reached at the address below, by phone at (714) 592-0250 or by email at Deborah.Harper@lslcpas.com. Deborah. A. Harper, Partner LANCE, SOLL & LUNGHARD, LLP 203 N. Brea Blvd., Suite 203 Brea, CA 92821 4.6.a Packet Pg. 107 Agenda #: 4.7 Meeting Date: April 6, 2021 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: ESTABLISHMENT OF A DIAMOND BAR DEBT MANAGEMENT POLICY. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: That the City Council adopt Resolution No. 2021-11 approving the Diamond Bar Debt Management Policy as required by and in compliance with Government Code Section 8855(i). FISCAL IMPACT: None. BACKGROUND: In 1981 the California Legislature established the California Debt Adviso ry Commission as the State's clearinghouse for public debt issuance information and required it to assist state and local agencies with the monitoring, issuance and management of public debt. In 1996 the Legislature changed the name to the California Debt and Investment Advisory Commission (CDIAC) and expanded its mission to cover public investment and to provide information, education and technical assistance on debt issuance and public fund investments to local agencies and public finance professionals. In September 2016 the Legislature enacted Senate Bill 1029 which became effective January 1, 2017, which further amended the CDIAC requirements. In particular, Government Code Section 8855(i) was amended to require that all governmental entities establish a Debt Management Policy (“Debt Policy”) if any form of debt is being contemplated or anticipated to be issued by the entity. Attachment No. 3 contains the text of the legislation. DISCUSSION/ANALYSIS: 4.7 Packet Pg. 108 A Debt Management Policy, consistent with the Government Code Section 8855(i), is being presented for Council consideration. Government Code Section 8855(i), as amended by SB 1029, requires: • CDIAC to track and report on all state and local outstanding debt until fully repaid or redeemed. • The report of proposed debt includes a certification by the issuer that it has adopted local debt policies, which include specified provisions concerning the use of debt and that the contemplated debt issuance is consistent with those local debt policies. • A state or local public agency to submit an annual report for any issue of debt. The City staff, financial advisor Fieldman, Rolapp & Associates, Inc., and bond and disclosure counsel Stradling, Yocca, Carlson & Rauth have prepared the City’s proposed Debt Management Policy (Attachment No. 2) for City Council consideration and approval as required by CDIAC, which meets all of the requirements of SB 1029, yet preserves flexibility for the City in managing its debt. As presented in the proposed Debt Management Policy, the primary objectives of the City's debt and financing-related activities are to: a) Maintain the City's sound financial position; b) Ensure the City has the flexibility to respond to possible changes in future service obligations, revenues, and operating expenses; c) Ensure that all debt is structured in order to protect both current and future taxpayers, ratepayers and constituents of the City; d) Minimize debt service commitments through efficient planning and cash management; e) Protect the City's credit worthiness and achieve the highest practical credit ratings, when applicable; and f) Ensure the City is in compliance with all relevant State and Federal securities laws and other applicable laws and regulations. Establishing this new Debt Management Policy is timely and a necessary part of the City undertaking the proceedings to refund the 2011 Fixed Rate Lease Revenue Bonds for the Diamond Bar Center. Thus, it is now timely and necessary for the City Council to consider and adopt a debt management policy that meets the requirements of Government Code section 8855(i), as amended by SB 1029. The Debt Policy presented with this agenda report meets these State Law requirements, while preserving flexibility for the City in the management o f its debt. 4.7 Packet Pg. 109 LEGAL REVIEW: The City Attorney has reviewed and approved the proposed Debt Management Policy as to form. PREPARED BY: REVIEWED BY: Attachments: 1. 4.7.a Resolution No. 2021-11 Debt Management Policy 2. 4.7.b CC 2021-01 Debt Management Policy 04-06-2021 3. 4.7.c Gov Code Section 8855i 4.7 Packet Pg. 110 RESOLUTION NO. 2021-11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR APPROVING A DEBT MANAGEMENT POLICY. The City Council of the City of Diamond Bar does hereby find, order and resolve as follows: Section 1. Recitals. A. In order to issue bonds, Section 8855(i) of the California Government Code (“Section 8855(i)”) requires each bond issuer and bond obligor to adopt a debt management policy. B. In order to enable the City of Diamond Bar (the “City”) to issue bonds or to serve as an obligor with responsibility for payments securing bonds issued by the City of Diamond Bar Public Financing Authority or other agencies in the future, the City wishes to approve a debt management policy (the “Debt Policy”) in the form that is presented at this meeting. C. The City Council has been presented with the form of Debt Policy that is referred to herein, and the City Council has examined and approved the Debt Policy and desires to adopt the Debt Policy as the debt management policy of the City pursuant to Section 8855(i). D. All acts, conditions and things that are required by the laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of the matters that are authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such matters for the purpose, in th e manner and upon the terms herein provided. Section 2. Approval of Debt Policy. The form of Debt Policy presented at this meeting and attached hereto as Exhibit A is hereby approved and adopted as the debt management policy of the City pursuant to Section 8855(i). Section 3. Further Action. The Mayor, the Mayor Pro Tem, the City Manager and the Finance Director are hereby authorized, empowered and directed, individually, to execute such other documents in addition to those enumerated herein and t o take such other actions as each deems necessary or advisable in order to effectuate the purposes of this Resolution and any such actions previously taken by such officers are hereby ratified, confirmed and approved. Section 4. Attestations. The City Clerk and such person or persons as may have been designated by the City Clerk to act on the City Clerk’s behalf, are hereby authorized and directed to attest the signature of the Authorized Officers designated 4.7.a Packet Pg. 111 Resolution No. 2021-11 2 herein to execute any documents described herein, and to affix and attest the seal of the City, as may be required or appropriate in connection with the execution and delivery of the documents that are described herein. Section 5. Effect. This Resolution shall take effect immediately upon its passage. Section 6. Certification. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. PASSED, APPROVED, and ADOPTED on this 6th day of April, 2021. __________________________ Nancy A. Lyons, Mayor ATTEST: I, Kristina Santana, 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 6th day of April, 2021, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: __________________________ Kristina Santana, City Clerk 4.7.a Packet Pg. 112 Resolution No. 2021-11 3 EXHIBIT A DEBT MANAGEMENT POLICY CITY COUNCIL POLICY 2021-01 4.7.a Packet Pg. 113 City Council Policy and Procedure Number: (2021-01) Reviewed: Annually/As-Needed Effective Date: 04/06/2021 Revised Date(s): N/A City Council Policy (2021-01) Effective Date: 04/06/2021 Page 1 of 10 Debt Management Policy 1. Purpose 1.1 The purpose of this Debt Policy is to establish guidelines and parameters for the effective governance, management and administration of debt and other financing obligations issued by the City and its related entities (such as, but not exclusive to, the Diamond Bar Public Financing Authority). This Debt Policy is intended to improve and direct decision making, assist with the structure of debt issuance, identify policy goals, and demonstrate a commitment to long-term planning, including the City’s Five-Year Financial Plan. Adherence to a debt policy helps to ensure the City’s debt is issued and managed prudently to maintain a sound financial position and credit worthiness. When used in this Debt Policy, “debt” refers to all indebtedness and financing obligations of the City and its related entities (together referred to as “City”). 2. Objectives 2.1 This Debt Policy is intended to comply with the requirements of Senate Bill 1029 (SB 1029), codified as part of California Government Code Section 8855(i), effective on January 1, 2017 and shall govern all debt undertaken by the City. The primary objectives of the City's debt and financing related activities are to: 2.1.1 Maintain the City's sound financial position. 2.1.2 The City will strive to maintain at least a long-term credit rating of “A” or its equivalent from any nationally recognized securities rating agency selected by the City. 2.1.3 Ensure the City has the flexibility to respond to possible changes in future service obligations, revenues, and operating expenses. 2.1.4 Ensure that all debt is structured in order to protect both current and future taxpayers, ratepayers and constituents of the City. 2.1.5 Minimize debt service commitments through efficient planning and cash management. 4.7.b Packet Pg. 114 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 2 of 10 2.1.6 Protect the City's credit worthiness and achieve the highest practical credit ratings, when applicable. 2.1.7 Ensure the City is in compliance with all relevant State and Federal securities laws and other applicable laws and regulations. 3. Acceptable Uses of Debt Proceeds 3.1 The City will consider the use of debt financing primarily for assets and capital projects only if the term of debt shall not exceed the asset(s) or project’s useful life or will otherwise comply with Federal tax law requirements. An exception to this long-term driven focus is the issuance of short-term instruments, such as tax and revenue anticipation notes, which are to be used for reasonable cash management purposes, as described below. Bonded debt should not be issued to finance normal operating expenses. General Fund debt will not be issued to support ongoing operational costs unless such debt issuance achieves net operating cost savings and such savings are verified by independent analysis. 3.1.1 Long-Term Debt a. Long-term debt may be issued to finance the construction, acquisition, and rehabilitation of capital improvements and facilities, equipment, and land to be owned and/or operated by the City. Long-term debt financings are appropriate when any of the following conditions exist: (1) When the project to be financed is necessary to provide basic municipal services; (2) When the project to be financed will provide benefit to the City’s constituents over a duration of more than five years; (3) When the total debt financing would not impose an unreasonable burden on the City and its taxpayers and/or ratepayers, as applicable; or (4) When the debt is used to refinance outstanding debt in order to produce debt service savings or to benefit from debt restructuring. 4.7.b Packet Pg. 115 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 3 of 10 b. The City may use long-term debt financings subject to each of the following conditions: (1) The project to be financed has been or will be considered and approved by the City Council; (2) Generally, the weighted average maturity of the debt should not exceed 120 percent of the weighted average economic life of the projects or equipment being financed, unless there are specific circumstances that would mitigate the extension of time to repay the debt and it would not result in violation of any covenants to maintain the tax- exempt status of such debt, if applicable; (3) The City estimates that sufficient revenues will be available to service the debt through its maturity; and (4) The City determines that the issuance of the debt will comply with the applicable requirements of State and Federal law. 3.1.2 Short-Term Debt - Short-term debt may be issued to provide financing for the City's operational cash flows in order to maintain a steady and even cash flow balance. Short-term debt may also be used to finance the City's short-lived capital projects, such as undertaking lease-purchase financing for equipment. 3.1.3 Financings on Behalf of Other Entities - The City may also issue debt on behalf of other governmental agencies or private third parties in order to further the public purposes of the City. In such cases, the City shall take reasonable steps to confirm the financial feasibility of the project to be financed, the financial solvency of any borrower, and that the issuance of such debt is consistent with the policies set forth herein. 4. Standards for Use of Debt Financing 4.1 The City recognizes that there are numerous types of financing structures and funding sources available, each with specific benefits, costs, and risks. The City will consider debt issuance only in those cases where public policy, equity and economic efficiency favor debt financing over cash funding. Prior to the issuance of debt or other financing obligations, the City will carefully consider the overall long-term affordability of the 4.7.b Packet Pg. 116 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 4 of 10 proposed debt issuance by conducting an objective analysis of the City's ability to support additional debt service payments. The City will consider its long-term revenue and expenditure trends, the impact on operational flexibility and the overall debt burden on the taxpayers/ratepayers. The evaluation process shall include a review of generally accepted measures of affordability and will strive to achieve and/or maintain debt levels consistent with its current operating and capital needs. 5. Types of Debt 5.1 In order to maximize the financial options available to benefit the public, it is the City’s policy to allow the consideration of issuing all generally accepted types of debt, including, but not exclusive to the following: 5.1.1 General Obligation (GO) Bonds: a. GO Bonds are suitable for use in the construction or acquisition of improvements to real property that benefit the public at large. The California Government Code, Division 4, Chapter 4, Article 1 commencing with section 43600 authorizes cities to finance certain municipal improvements through GO bonds when a city determines the public interest and necessity demands the acquisition, construction or completion of such municipal improvements, including property or structures necessary or convenient to carry out the objects, purposes, and powers of a city. b. Examples of projects include but are not limited to libraries, parks, public services, and public safety facilities. All GO bonds shall be authorized by the requisite number of voters in order to pass. 5.1.2 Revenue Bonds/Certificates of Participation (COPs) - Revenue Bonds and COPs are limited-liability obligations tied to a specific enterprise or special fund revenue stream where the projects financed clearly benefit or relate to the enterprise or are otherwise permissible uses of the special revenue. Generally, no voter approval is required to issue this type of obligation but in some cases, the City must comply with proposition 218 regarding rate adjustments. 4.7.b Packet Pg. 117 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 5 of 10 5.1.3 Joint Powers Authority (JPA) Lease Revenue Bonds - As an alternative to COPs, the City may obtain financing through the issuance of debt by a joint exercise of powers agency with such debt payable from amounts paid by the City under a lease, installment sale agreement, or contract of indebtedness. 5.1.4 Loans - The City is authorized to enter into loans, installment payment obligations, or other similar funding structures secured by a prudent source or sources of repayment. 5.1.5 Special Assessment/Special Tax Debt - The City will consider requests from developers for the use of debt financing secured by property-based assessments or special taxes in order to provide for necessary infrastructure for new development under guidelines adopted by City Council, which may include minimum value-to-lien ratios and maximum tax burdens. Examples of this type of debt are Assessment Districts (ADs) and Community Facilities Districts (CFDs), also known as Mello-Roos Districts. In order to protect bondholders as well as the City's credit rating, the City will also comply with all State guidelines regarding the issuance of special tax or special assessment debt. 5.1.6 Tax Increment Financing - Tax Increment Financing provides options to finance infrastructure and economic development projects using as a repayment stream property tax revenues generated above an established “base year” value (tax increment). The City may consider tax increment financing to the extent permitted under State law. Examples include tax allocation bonds, which are special obligations secured by the allocation of tax increment revenues generated by increased property taxes in a designated redevelopment project area, as well as debt issued by Enhanced Infrastructure Financing Districts (EIFDs) or Community Revitalization and Investment Authorities (CRIAs). When considering tax increment financing mechanisms permitted by law, the City should analyze the practical viability of the proposed financing and take into account the potential impact of the proposed structure on existing debt limitations. 4.7.b Packet Pg. 118 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 6 of 10 5.1.7 Short-Term Debt: a. Short-term borrowing, such as commercial paper, Tax and Revenue Anticipation Notes (TRANS), and lines of credit, will be considered as an interim source of funding in anticipation of long-term borrowing and may be issued to generate funding for cash flow needs. The final maturity of the debt issued to finance the project shall be consistent with the useful life of the project. b. Short-term debt may also be used to finance short-lived capital projects such as lease-purchase financing for equipment. 5.1.8 Refunding Bonds: a. The City shall refinance debt pursuant to the authorization that is provided under California law, including but not limited to Articles 10 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, as market opportunities arise. Refundings may be undertaken in order: (1) To take advantage of lower interest rates and achieve debt service costs savings; (2) To eliminate restrictive or burdensome bond covenants; or (3) To restructure debt to lengthen the duration of repayment, relieve debt service spikes, reduce volatility in interest rates or free up reserve funds. b. Generally, the City shall strive to achieve a minimum of 3% net present value savings. The net present value assessment shall factor in all costs, including issuance, escrow, and foregone interest earnings of any contributed funds on hand. Refundings which produce a net present value savings of less than 3% will be considered on a case-by-case basis. Upon the advice of the Finance Director and with the assistance of a financial advisor and bond counsel, the City will consider undertaking refundings for other than economic purposes based upon a finding that such a restructuring is in the City's overall best financial interest. 4.7.b Packet Pg. 119 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 7 of 10 The City may from time to time find that other forms of debt would be beneficial to further its public purposes and may approve such debt without an amendment of this Debt Policy. However, the other form or forms of debt must comply with this Debt Management Policy. c. Debt shall be issued as fixed rate debt unless the City makes a specific determination as to why a variable rate issue would be beneficial to the City in that circumstance. 6. Relationship to Capital Improvement Program and Operating Budget 6.1 The City intends to issue debt for the purposes stated in this Debt Policy and the decision to incur new indebtedness should be integrated with the City Council-adopted annual Operating Budget and Capital Improvement Program Budget. Prior to issuance of debt, a reliable revenue source shall be identified to secure repayment of the debt and the annual debt service payments shall be included in the Operating Budget. The City shall integrate its debt issuances with the goals of its Capital Improvement Program by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City's public purposes. 7. Policy Goals Related to Planning Goals and Objectives 7.1 This Debt Policy has been adopted to assist with the City’s goal of financial sustainability and financial prudence. In following this Debt Policy, the City shall pursue the following policy goals: 7.1.1 The City is committed to financial planning, maintaining appropriate reserves levels and employing prudent practices in governance, management and budget administration. The City intends to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the City's annual Operating Budget; 7.1.2 It is a policy goal of the City to protect taxpayers, ratepayers and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings, if applicable, and the lowest practical borrowing costs; 4.7.b Packet Pg. 120 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 8 of 10 7.1.3 It is a policy goal of the City to reduce the unfunded liabilities for employee pension and other post-employment benefits (OPEB); 7.1.4 The City will comply with applicable State and Federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates and charges; and 7.1.5 When refinancing debt, it shall be the policy goal of the City to achieve, whenever possible and subject to any overriding non- financial policy, minimum aggregate net present value debt service savings of at least 3% of the refunded principal amount. 8. Internal Control Procedures 8.1. When issuing debt, in addition to complying with the terms of this Debt Policy, the City shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post-issuance compliance, and investment of bond proceeds. The City will periodically review the requirements of and will remain in compliance with the following: a. Federal securities law, including any continuing disclosure undertakings under SEC Rule 15c2-12; b. Any federal tax compliance requirements including without limitation arbitrage and rebate compliance, related to any prior bond issues; c. The City's investment policies as they relate to the investment of bond proceeds; and d. Government Code section 8855(k) and the annual reporting requirements therein. 8.2 The City shall be vigilant in using bond proceeds in accordance with the stated purpose at the time that such debt was issued. The City Manager, Finance Director or designee will monitor the expenditure of bond proceeds to ensure they are used only for the purpose and authority for which the bonds were issued. Whenever reasonably possible, proceeds of debt will be held by a third-party trustee and the City will submit written requisitions for such proceeds. The City will submit a requisition 4.7.b Packet Pg. 121 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 9 of 10 only after obtaining the signature of the City Manager and the Finance Director. 9. Amendment and Waivers of Debt Policy 9.1 This Debt Policy will be reviewed and updated periodically as needed. Any amendments to this Debt Policy are subject to specific City Council approval. While adherence to this Debt Policy is required in all applicable circumstances, on rare occasions there might be circumstances when strict adherence to a provision of this Debt Policy is not possible or not in the best interest of the City. If the City staff has determined that a waiver of one or more provisions of this Debt Policy should be considered by the City Council based on a strong and compelling reason, it will prepare an analysis for the City Council describing the rationale for the waiver and the impact of the waiver on the proposed debt issuance and on taxpayers, if applicable. Upon a super majority vote of the City Council, one or more provisions of this Debt Policy may be waived for a debt financing. The failure of a debt financing to comply with one or more provisions of this Debt Policy shall in no way affect the validity of any debt issued by the City in accordance with applicable laws. 10. SB 1029 Compliance 10.1 SB 1029, signed by Governor Brown on September 12, 2016, and enacted as Chapter 307, Statutes of 2016, requires issuers to adopt debt policies addressing each of the five items below: 10.1.1 The purposes for which the debt proceeds may be used. a. Section 3 (Acceptable Uses of Debt Proceeds) addresses the purposes for which debt proceeds may be used. 10.1.2 The types of debt that may be issued. a. Section 5 (Types of Debt) provides information regarding the types of debt that may be issued. 10.1.3 The relationship of the debt to, and integration with, the issuer's capital improvement program or budget, if applicable. 4.7.b Packet Pg. 122 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 10 of 10 a. Section 6 (Relationship to Capital Improvement Program and Operating Budget) provides information regarding the relationship between the City's debt and Capital Improvement Program and annual Operating Budget. 10.1.4 Policy goals related to the issuer's planning goals and objectives. a. Section 2 (Debt Policy Objective) and Section 7 (Policy Goals Related to Planning Goals and Objectives) address some of the City’s policy goals and how this Debt Policy has implemented them. 10.1.5 The internal control procedures that the issuer has implemented, or will implement, to ensure that the proceeds of the proposed debt issuance will be directed to the intended use. a. Section 8 (Internal Control Procedures) provides information regarding the City's internal control procedures designed to ensure that the proceeds of its debt issues are spent as intended. 10.2 This Debt Policy, as written, complies with and meets the requirements of SB 1029. 4.7.b Packet Pg. 123 3/29/2021 https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&sectionNum=8855.&op_statues=2016&op_chapt… https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&sectionNum=8855.&op_statues=2016&op_chapter=307&op_s…1/3 TITLE 2. GOVERNMENT OF THE STATE OF CALIFORNIA [8000 - 22980] ( Title 2 enacted by Stats. 1943, Ch. 134. ) DIVISION 1. GENERAL [8000 - 8899.72] ( Division 1 enacted by Stats. 1943, Ch. 134. ) 8855. GOVERNMENT CODE - GOV CHAPTER 11.5. California Debt and Investment Advisory Commission [8855 - 8859] ( Heading of Chapter 11.5 amended by Stats. 2004, Ch. 7, Sec. 2. ) (a) There is created the California Debt and Investment Advisory Commission, consisting of nine members, selected as follows: (1) The Treasurer, or his or her designee. (2) The Governor or the Director of Finance. (3) The Controller, or his or her designee. (4) Two local government finance officers appointed by the Treasurer, one each from among persons employed by a county and by a city or a city and county of this state, experienced in the issuance and sale of municipal bonds and nominated by associations affiliated with these agencies. (5) Two Members of the Assembly appointed by the Speaker of the Assembly. (6) Two Members of the Senate appointed by the Senate Committee on Rules. (b) (1) The term of office of an appointed member is four years, but appointed members serve at the pleasure of the appointing power. In case of a vacancy for any cause, the appointing power shall make an appointment to become effective immediately for the unexpired term. (2) Any legislators appointed to the commission shall meet with and participate in the activities of the commission to the extent that the participation is not incompatible with their respective positions as Members of the Legislature. For purposes of this chapter, the Members of the Legislature shall constitute a joint interim legislative committee on the subject of this chapter. (c) The Treasurer shall serve as chairperson of the commission and shall preside at meetings of the commission. (d) Appointed members of the commission shall not receive a salary, but shall be entitled to a per diem allowance of fifty dollars ($50) for each day’s attendance at a meeting of the commission not to exceed three hundred dollars ($300) in any month, and reimbursement for expenses incurred in the performance of their duties under this chapter, including travel and other necessary expenses. (e) The commission may adopt bylaws for the regulation of its affairs and the conduct of its business. (f) The commission shall meet on the call of the chairperson, at the request of a majority of the members, or at the request of the Governor. A majority of all nonlegislative members of the commission constitutes a quorum for the transaction of business. (g) The office of the Treasurer shall furnish all administrative assistance required by the commission. (h) The commission shall do all of the following: (1) Assist all state financing authorities and commissions in carrying out their responsibilities as prescribed by law, including assistance with respect to federal legislation pending in Congress. (2) Upon request of any state or local government units, to assist them in the planning, preparation, marketing, and sale of debt issues to reduce cost and to assist in protecting the issuer’s credit. 4.7.c Packet Pg. 124 3/29/2021 https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&sectionNum=8855.&op_statues=2016&op_chapt… https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&sectionNum=8855.&op_statues=2016&op_chapter=307&op_s…2/3 (3) Collect, maintain, and provide comprehensive information on all state and all local debt authorization and issuance, track and report on all state and local outstanding debt until fully repaid or redeemed, and serve as a statistical clearinghouse for all state and local debt. This information shall be available to the public. (4) Maintain contact with state and municipal bond issuers, underwriters, credit rating agencies, investors, and others to improve the market for state and local government debt issues. (5) Undertake or commission studies on methods to reduce the costs and improve credit ratings of state and local issues. (6) Recommend changes in state laws and local practices to improve the sale and servicing of state and local debts. (7) Establish a continuing education program for local officials having direct or supervisory responsibility over municipal investments and debt issuance. The commission shall undertake these and any other activities necessary to disclose investment and debt issuance practices and strategies that may be conducive for oversight purposes. (8) Collect, maintain, and provide information on local agency investments of public funds for local agency investment. (9) Publish a monthly newsletter describing and evaluating the operations of the commission during the preceding month. (i) (1) The issuer of any proposed debt issue of state or local government shall, no later than 30 days prior to the sale of any debt issue, submit a report of the proposed issuance to the commission by any method approved by the commission. This subdivision shall also apply to any nonprofit public benefit corporation incorporated for the purpose of acquiring student loans. The commission may require information to be submitted in the report of proposed debt issuance that it considers appropriate. Failure to submit the report shall not affect the validity of the sale. The report of proposed debt issuance shall include a certification by the issuer that it has adopted local debt policies concerning the use of debt and that the contemplated debt issuance is consistent with those local debt policies. A local debt policy shall include all of the following: (A) The purposes for which the debt proceeds may be used. (B) The types of debt that may be issued. (C) The relationship of the debt to, and integration with, the issuer’s capital improvement program or budget, if applicable. (D) Policy goals related to the issuer ’s planning goals and objectives. (E) The internal control procedures that the issuer has implemented, or will implement, to ensure that the proceeds of the proposed debt issuance will be directed to the intended use. (2) In the case of an issue of bonds the proceeds of which will be used by a governmental entity other than the issuer, the issuer may rely upon a certification by that other governmental entity that it has adopted the policies described in subparagraphs (C), (D), and (E) of paragraph (1), and references to the “issuer” in those subparagraphs shall be deemed to refer instead to the other governmental entity. (j) The issuer of any debt issue of state or local government, not later than 21 days after the sale of the debt, shall submit a report of final sale to the commission by any method approved by the commission. A copy of the final official statement for the issue shall accompany the report of final sale. If there is no official statement, the issuer shall provide each of the following documents, if they exist, along with the report of final sale: (1) Other disclosure document. (2) Indenture. (3) Installment sales agreement. (4) Loan agreement. (5) Promissory note. (6) Bond purchase contract. (7) Resolution authorizing the issue. (8) Bond specimen. 4.7.c Packet Pg. 125 3/29/2021 https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&sectionNum=8855.&op_statues=2016&op_chapt… https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&sectionNum=8855.&op_statues=2016&op_chapter=307&op_s…3/3 The commission may require information to be submitted in the report of final sale that it considers appropriate. The issuer may redact confidential information contained in the documents if the redacted information is not information that is otherwise required to be reported to the commission. (k) (1) A public agency, whether state or local, shall submit an annual report for any issue of debt for which it has submitted a report of final sale pursuant to subdivision (j) on or after January 21, 2017. The annual report shall cover a reporting period from July 1 to June 30, inclusive, and shall be submitted no later than seven months after the end of the reporting period by any method approved by the commission. Before approving any annual method of reporting pursuant to this subdivision, the commission shall consult with appropriate state and local debt issuers and organizations representing debt issuers for purposes that shall include, but not be limited to, making a proposed reporting method more efficient and less burdensome for issuers. The annual report shall consist of the following information: (A) Debt authorized during the reporting period, which shall include the following: (i) Debt authorized at the beginning of the reporting period. (ii) Debt authorized and issued during the reporting period. (iii) Debt authorized but not issued at the end of the reporting period. (iv) Debt authority that has lapsed during the reporting period. (B) Debt outstanding during the reporting period, which shall include the following: (i) Principal balance at the beginning of the reporting period. (ii) Principal paid during the reporting period. (iii) Principal outstanding at the end of the reporting period. (C) The use of proceeds of issued debt during the reporting period, which shall include the following: (i) Debt proceeds available at the beginning of the reporting period. (ii) Proceeds spent during the reporting period and the purposes for which it was spent. (iii) Debt proceeds remaining at the end of the reporting period. (2) Compliance with this subdivision shall be required for each issue of debt with outstanding debt, debt that has been authorized but not issued, or both, during the reporting period. (3) The commission may, if technology permits, develop an alternate reporting method, provided that any alternate reporting method is in furtherance of the purpose of collecting the data required by this subdivision. Before approving any alternate annual method of reporting pursuant to this subdivision, the commission shall consult with appropriate state and local debt issuers and organizations representing debt issuers for purposes that shall include, but not be limited to, making a proposed reporting method more efficient and less burdensome for issuers. (Amended by Stats. 2016, Ch. 307, Sec. 2. (SB 1029) Effective January 1, 2017.) 4.7.c Packet Pg. 126 Agenda #: 4.8 Meeting Date: April 6, 2021 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: AGREEMENTS FOR FINANCIAL ADVISORY, AND BOND COUNSEL AND DISCLOSURE SERVICES RELATED TO REFUNDING THE DIAMOND BAR CENTER FIXED RATE LEASE REVENUE BONDS. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: That the City Council: A. Approve, and Authorize the City Manager to sign the Professional Services Agreement with Fieldman Rolapp & Associates; and B. Approve, and Authorize the City Manager to sign the Engagement Letter with Stradling Yocca Carlson & Rauth. FINANCIAL IMPACT: The Fieldman Rolapp & Associates fee proposal is not -to-exceed $47,500. The Stradling Yocca Carlson & Rauth fee proposal is not -to-exceed $55,000. In both cases, the fees would be due upon a successful transaction and would be paid from proceeds resulting from the transition. The total cost of the transaction, including underwriting fees, and all other expenses, fees and services, is estimated to be approx imately $210,000 - $225,000. BACKGROUND/DISCUSSION: On March 16, 2021, the City Council held a study session to consider options to refund of the Diamond Bar Center Fixed Rate Bonds. A presentation was made by the City’s Financial Advisors Fieldman, Rolapp & Associates regarding the process, and the potential to refund the outstanding principal at a lower rate which would result in annual savings during the remainder of the bond term. It is expected that the current bond maturity date of June 1, 2033 would remain the same. 4.8 Packet Pg. 127 In efforts to efficiently and expeditiously implement the refunding process, specialized services are required as it relates to this type of transaction. An Agreement to retain the services of Fieldman, Rolapp & Associates to serve as Financial Advisors (Attachment 1) is provided for Council approval in connection with this transaction. In addition, an Engagement Letter with Stradling Yocca Carlson & Rauth to serve as Bond and Disclosure Counsel (Attachment 2) is also recommended for Council approval in connection with the transaction. These two firms were part of the same team of special services that was utilized in the successful conversion of the initial variable lease rate bonds to fixed rate bonds in 2011. It is anticipated that the necessary legal documents and resolutions that require considered and approved by the City Council will be presented at the May 4, 2021 meeting. LEGAL REVIEW: The City Attorney has reviewed and approved the Agreements as to form. PREPARED BY: REVIEWED BY: Attachments: 1. 4.8.a Professional Services Agreement For Municipal Advisor; Fieldman 2021 2. 4.8.b Diamond Bar Engagement Letter; Stradling 2021 4.8 Packet Pg. 128 CITY OF DIAMOND BAR/FIELDMAN, ROLAPP & ASSOCIATES, INC. Page 1 FRA Project No. 21158 1568494.1 PROFESSIONAL SERVICES AGREEMENT FOR MUNICIPAL ADVISOR This agreement (“Agreement”) has been entered into this 6th day of April, 2021 by and between the City of Diamond Bar (the "City") and Fieldman, Rolapp & Associates, Inc. (herein, the "Consultant"). WHEREAS, the City desires independent municipal advisory services to be performed in connection with the refunding of the City’s outstanding City of Diamond Bar Public Financing Authority Fixed Rate Lease Revenue Bonds, 2002 Series A (Community/Senior Center Project) (herein, the "Project"); and WHEREAS, the City desires to retain the professional and technical services of the Consultant for the purpose of debt issuance and financial planning, (as more fully described in Exhibit A, the "Services"); and WHEREAS, the Consultant is well qualified to provide the Services; and WHEREAS, the Consultant is registered as a municipal advisor with both the United States Securities and Exchange Commission and the Municipal Securities Rulemaking Board. NOW, THEREFORE, in consideration of the above recitals and the mutual covenants and conditions hereinafter set forth, it is agreed as follows: Section 1 Municipal Advisory Services. Consultant will provide the Services in connection with the Project as such Services are fully described in Exhibit A attached to this Agreement, which is incorporated herein by this reference. Consultant is engaged in an expert financial advisory capacity to the City only. It is expressly understood that the Services rendered hereunder are rendered solely to the City. Consultant does not undertake any responsibility to review disclosure documents on behalf of owners or beneficial owners of bonds or debt which may arise from the Consultant's work hereunder. Section 2 Additional Requested Services (Amendment of Services). The City may request that Consultant provide additional services beyond the scope of the Services. The Services to be provided under this Agreement may only be amended by a modification as provided for in Section 6. Section 3 Compensation 3.01 For Consultant's performance of Services, the Consultant's compensation will be as provided in Exhibit B attached to this Agreement, which is incorporated herein by this reference. 3.02 Payment of Consultant’s expenses shall be made at the time and in the form as provided for in Exhibit B to this Agreement. 4.8.a Packet Pg. 129 CITY OF DIAMOND BAR/FIELDMAN, ROLAPP & ASSOCIATES, INC. Page 2 FRA Project No. 21158 1568494.1 3.03 Unless otherwise specified, payment of Consultant's compensation and expenses is due thirty (30) days after submission of Consultant's invoice for Services. 3.04 In the event City terminates or abandons the Services of the Consultant prior to completion of Consultant's work, Consultant shall be compensated for Services performed to the point of termination or abandonment at the hourly rates specified in Exhibit B. An act of abandonment shall be deemed to have occurred when no action has been taken by the City relative to the Services for a period of six (6) months from the date of the initial performance of the Services, and there has been a written notification to the Consultant of an abandonment of the Project by the City. 3.05 The schedule of Consultant fees set forth in this Agreement and Exhibit B is guaranteed by Consultant for the term of this Agreement. Section 4 Personnel. Consultant has, or will secure, all personnel required to perform the Services under this Agreement. Consultant shall make available other qualified personnel of the firm as may be required to complete Consultant's services. The City has the right to approve or disapprove any proposed changes in Consultant's staff providing Services to the City. The City and Consultant agree that such personnel are employees only of Consultant and shall not be considered to be employees of the City in any way whatsoever. Section 5 Term of Agreement. This Agreement shall continue in full force and effect unless terminated, with or without cause by the City upon not less than thirty (30) days written notice. Consultant may terminate this Agreement for cause or upon abandonment as set forth in Section 3. This Agreement may be extended from time to time as agreed by the City and the Consultant pursuant to Section 6. Section 6 Modification. This Agreement contains the entire agreement of the parties. It may be amended in whole or in part from time to time by mutual consent of the parties; provided that the Disclosures (as defined herein) required by Section 16 will be updated by the Consultant as required by law. This shall not prohibit the City and Consultant from entering into separate agreements for other services. Section 7 Work Products. All work products or any form of property developed by the Consultant in providing the Services shall be provided to the City on request. Work products developed by the Consultant shall be the property of the City, provided that Consultant may use such work products developed for the City and may employ those work products to develop refinements or additional work products in the course of its business. 4.8.a Packet Pg. 130 CITY OF DIAMOND BAR/FIELDMAN, ROLAPP & ASSOCIATES, INC. Page 3 FRA Project No. 21158 1568494.1 Section 8 Assignment. The rights and obligations of the City under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the City. This Agreement may not be assigned by the Consultant without the consent of the City. Section 9 Disclosure. Consultant does not assume the responsibilities of the City, nor the responsibilities of the other professionals and vendors representing the City, in the provision of its Services and the preparation of the financing documents, including initial and secondary market disclosure, for financings undertaken by the City. Information obtained by Consultant and included in any disclosure documents is, by reason of experience, believed to be accurate; however, such information is not guaranteed by Consultant. Section 10 Confidentiality. The Consultant agrees that all financial, statistical, personal, technical and other data and information designated by the City as confidential shall be protected by the Consultant from unauthorized use or disclosure. The City acknowledges that the Consultant is required to comply with applicable laws governing disclosure of public information. Section 11 Indemnification. The City and Consultant shall each indemnify and hold harmless the other from and against any and all losses, claims, damages, expenses, including legal fees for defense, or liabilities (collectively, “damages”), to which either may be subjected by reason of the other's acts, errors or omissions, except however, neither will indemnify the other from or against damages by reason of changed events and conditions beyond the control of either or errors of judgment reasonably made. Section 12 Insurance. 12.01 Consultant shall maintain workers' compensation and employer’s liability insurance during the term of this Agreement. 12.02 Consultant, at its own expense, shall obtain and maintain insurance at all times during the term of this Agreement. Such insurance must be written with a Best Guide "A"-rated or higher insurance carrier admitted to write insurance in California. 12.03 Insurance coverages shall not be less than the following: A. Workers' Compensation 1. State worker's compensation statutory benefits 2. Employer's Liability - policy limits of not less than $1,000,000 4.8.a Packet Pg. 131 CITY OF DIAMOND BAR/FIELDMAN, ROLAPP & ASSOCIATES, INC. Page 4 FRA Project No. 21158 1568494.1 B. Comprehensive General Liability coverage with policy limits of not less than $1,000,000 combined single limit for bodily injury and property damage and including coverage for the following: 1. Premises operations 2. Contractual liability 3. Products 4. Completed operation C. Errors and omissions with policy limits of $2,000,000. 12.04 Consultant shall provide an endorsement or a copy of the policy provision naming the City as an additional insured on its General Liability coverage and provide certificates of insurance to the City evidencing the required coverages, limits and locations of operations to which the insurance applies, and the policies of insurance shall contain a 30-day notice of cancellation or non-renewal. Section 13 Permits/Licenses. The Consultant shall obtain any permits or licenses, as may be required for it to complete the Services required under this Agreement. Section 14 Binding Effect. 14.01 A waiver or indulgence by the City of a breach of any provision of this Agreement by the Consultant shall not operate or be construed as a waiver of any subsequent breach by the Consultant. 14.02 All agreements contained herein are severable and in the event any of them shall be held to be invalid by any competent court, this Agreement shall be interpreted as if such invalid agreements or covenants were not contained herein, and the remaining provisions of this Agreement shall not be affected by such determination and shall remain in full force and effect. This Agreement shall not fail because any part or any clause hereof shall be held indefinite or invalid. 14.03 Each party hereto represents and warrants that this Agreement has been duly authorized and executed by it and constitutes its valid and binding agreement, and that any governmental approvals necessary for the performance of this Agreement have been obtained. Section 15 Choice of Law. The validity, interpretation and construction of this Agreement and of each part hereof shall be governed by the laws of the State of California. Venue for any lawsuit concerning this Agreement is Los Angeles, California. Section 16 Conflict of Interest and Other Required Disclosures. Consultant covenants and agrees to provide to the City disclosures of material conflicts of interest and certain legal or disciplinary events required by Municipal Securities Rulemaking Board Rule G-42 (the “Disclosures”). The Disclosures, and 4.8.a Packet Pg. 132 CITY OF DIAMOND BAR/FIELDMAN, ROLAPP & ASSOCIATES, INC. Page 5 FRA Project No. 21158 1568494.1 each delivery thereof, as provided from time to time, shall be incorporated by reference as of the date thereof into this Agreement to the same extent as if set forth herein. The initial Disclosures are as set forth in Exhibit C to this Agreement. IN WITNESS Whereof, the parties have duly executed this Agreement as of the day and year first above set forth. CITY OF DIAMOND BAR 21810 Copley Dr. Diamond Bar, CA 91765 By: Title: Date: FIELDMAN, ROLAPP & ASSOCIATES, INC. 19900 MacArthur Boulevard, Suite 1100 Irvine, CA 92612 By: Title: Principal Date: March 26, 2021 4.8.a Packet Pg. 133 CITY OF DIAMOND BAR/FIELDMAN, ROLAPP & ASSOCIATES, INC. Exhibit A, Page 1 FRA Project No. 21158 1568494.1 EXHIBIT A TO PROFESSIONAL SERVICES AGREEMENT FOR MUNICIPAL ADVISOR BY AND BETWEEN THE CITY OF DIAMOND BAR AND FIELDMAN, ROLAPP & ASSOCIATES, INC. Scope of Services A. General Services. The Consultant shall perform all the duties and services described in Section 1 of this Agreement and shall provide such other services as it deems necessary or advisable to accomplish the Project, consistent with the standards and practice of professional financial advisors prevailing at the time such services are rendered to the City. The City may, with the concurrence of Consultant, expand this Agreement to include Additional Services not specifically identified within the terms of this Agreement. Any Additional Services may be described in an addendum to this Exhibit A and are subject to compensation described in Exhibit B to this Agreement. B. Transaction Services. The Consultant shall assume primary responsibility for assisting the City in coordinating the planning and execution of each debt issue relating to the Project. Insofar as the Consultant is providing Services which are rendered only to the City, the overall coordination of the financing shall be such as to minimize the costs of the transaction coincident with maximizing the City's financing flexibility and capital market access. The Consultant's proposed debt issuance Services may include the following:  Develop the Financing Schedule  Monitor the Transaction Process  Review the Official Statement, both preliminary and final  Procure and Coordinate Additional Service Providers  Provide Financial Advice to the City Related to Financing Documents  Compute Sizing and Design Structure of the Debt Issue  Plan and Schedule Rating Agency Presentation  Conduct Credit Enhancement Procurement and Evaluation  Conduct Market Analysis and Evaluate Timing of Market Entry  Recommend Award of Debt Issuance  Provide Pre-Closing and Closing Assistance 4.8.a Packet Pg. 134 CITY OF DIAMOND BAR/FIELDMAN, ROLAPP & ASSOCIATES, INC. Exhibit A, Page 2 FRA Project No. 21158 1568494.1 Specifically, Consultant will: 1. Develop the Financing Timetable. The Consultant shall take the lead role in preparing a schedule and detailed description of the interconnected responsibilities of each team member and update this schedule, with refinements, as necessary, as the work progresses. 2. Monitor the Transaction Process. The Consultant shall have primary responsibility for the successful implementation of the financing strategy and timetable that is adopted for each debt issue relating to the Project. The Consultant shall coordinate (and assist, where appropriate) in the preparation of the legal and disclosure documents and shall monitor the progress of all activities leading to the sale of debt. The Consultant shall prepare the timetables and work schedules necessary to achieve this end in a timely, efficient and cost-effective manner and will coordinate and monitor the activities of all parties engaged in the financing transaction. 3. Review the Official Statement. The Consultant shall review the official statement for each debt issue relating to the Project to insure that the City's official statement is compiled in a manner consistent with industry standards. Consultant does not undertake any responsibility to review disclosure documents on behalf of owners or beneficial owners of bonds or debt which may arise from the Consultant's work hereunder. 4. Procure and Coordinate Additional Service Providers. The Consultant may act as City’s representative in procuring the services of financial printers for the official statement and related documents, and for the printing of any securities. In addition, the Consultant may act as the City's representative in procuring the services of trustees, paying agents, fiscal agents, feasibility consultants, redevelopment consultants, or escrow verification agents or other professionals, if the City directs. 5. Provide Financial Advice to the City Relating to Financing Documents. The Consultant shall assist the managing underwriters, bond counsel and/or other legal advisors in the review of the respective financing resolutions, notices and other legal documents. In this regard, the Consultant shall monitor document preparation for a consistent and accurate presentation of the recommended business terms and financing structure of each debt issue relating to the Project, it being specifically understood however that the Consultant’s services shall in no manner be construed as the Consultant engaging in the practice of law. 6. Compute Sizing and Design Structure of Debt Issue. The Consultant shall work with the City's staff bond counsel and other professionals of the City to design a financing structure for each debt issue relating to the Project that is consistent with the City's objectives, that coordinates each transaction with outstanding issues and that reflects current conditions in the capital markets. 4.8.a Packet Pg. 135 CITY OF DIAMOND BAR/FIELDMAN, ROLAPP & ASSOCIATES, INC. Exhibit A, Page 3 FRA Project No. 21158 1568494.1 7. Plan and Schedule Rating Agency Presentation The Consultant shall develop a plan for presenting the financing program to the rating agencies. The Consultant shall schedule rating agency visits, if appropriate, to assure the appropriate and most knowledgeable rating agency personnel are available for the presentation and will develop presentation materials and assist the City officials in preparing for the presentations. 8. Conduct Credit Enhancement Evaluation. Upon the City’s direction, the Consultant will initiate discussions with bond insurers, letter of credit providers and vendors of other forms of credit enhancements to determine the availability of and cost benefit of securing financing credit support. 9. Conduct Market Analysis and Evaluate Timing of Market Entry. The Consultant shall provide summaries of current municipal market conditions, trends in the market and how these may favorably or unfavorably affect the City's proposed financing. a. Competitive Sales. For all types of competitive sale of debt, the Consultant shall undertake such activities as are generally required for sale of securities by competitive bid including, but not limited to the following:  Review and comment on terms of Notice of Sale Inviting Bids  Provide advice on debt sale scheduling  Provide advice on the use of electronic bidding systems  Contact potential bidders  Coordinate bid opening with the City officials  Verify bids received and make recommendations for acceptance  Provide confirmation of issue sizing, based upon actual bids received, where appropriate  Coordinate closing arrangements with the successful bidder(s) b. Negotiated Sales. In the case of a negotiated sale of debt, the Consultant shall perform an evaluation of market conditions preceding the negotiation of the terms of the sale of debt and will assist the City with the negotiation of final issue structure, interest rates, interest cost, reoffering terms and gross underwriting spread and provide a recommendation on acceptance or rejection of the offer to purchase the debt. This assistance and evaluation will focus on the following areas as determinants of interest cost:  Size of financing  Sources and uses of funds  Terms and maturities of the debt issue 4.8.a Packet Pg. 136 CITY OF DIAMOND BAR/FIELDMAN, ROLAPP & ASSOCIATES, INC. Exhibit A, Page 4 FRA Project No. 21158 1568494.1  Review of the rating in pricing of the debt issue  Investment of debt issue proceeds  Distribution mix among institutional and retail purchasers  Interest rate, reoffering terms and underwriting discount with comparable issues  Redemption provisions c. Private or Direct Placement In the case of a private placement or direct placement of debt with a commercial bank or other similar institution, the Consultant will provide assistance and advice to the City in negotiating the terms of the debt, including the size, structure, interest rates, prepayment terms and compensation to lender, if any. The Consultant will provide a recommendation on the acceptance or rejection of the terms of the placement. The Consultant cannot provide a specific list of potential lenders and cannot serve as placement agent for the financing, but can assist the City with implementing a financing with a lender or lenders selected by the City without advice from the Consultant. 10. Recommend Award of Debt Issuance. Based upon activities outlined in Task 10(a), 10(b) and 10(c) above, the Consultant will recommend accepting or rejecting offers to purchase the debt issue. If the City elects to award the debt issue, the Consultant will instruct all parties and help facilitate the actions required to formally consummate the award. 11. Provide Pre-Closing and Closing Activities. The Consultant shall assist in arranging for the closing of each financing. The Consultant shall assist counsel in assuming responsibility for such arrangements as they are required, including arranging for or monitoring the progress of bond printing, qualification of issues for book-entry status, signing and final delivery of the securities and settlement of the costs of issuance. 4.8.a Packet Pg. 137 CITY OF DIAMOND BAR/FIELDMAN, ROLAPP & ASSOCIATES, INC. Exhibit B, Page 1 FRA Project No. 21158 1568494.1 EXHIBIT B TO PROFESSIONAL SERVICES AGREEMENT FOR MUNICIPAL ADVISOR BY AND BETWEEN THE CITY OF DIAMOND BAR AND FIELDMAN, ROLAPP & ASSOCIATES, INC. Compensation and Expenses Part 1 Transaction Based Compensation For Services referenced in Section 1 of this Agreement, including Services performed after the adoption by the City Council, the Consultant will be compensated a fee of $47,500. For transactions that include new money and refunding, or multiple series of refunding’s, a fee of not to exceed $15,000 per series being refunded will be added to the transaction fee above. Payment of compensation earned by Consultant pursuant to this Part 1 shall be contingent on, and payable at the closing of the debt issue(s) undertaken to finance the Project. Part 2 Hourly Compensation For Services and Additional Services referenced in Section 1 and Section 2 of this Agreement, including Services performed prior to the adoption by City Council, the Consultant will be compensated at the then current hourly rates. The table below reflects the rates in effect as of the date of execution of this Agreement. Personnel Hourly Rate Executive Officer .............................................................. $375.00 Principal ............................................................................ $345.00 Executive / Senior Vice President ..................................... $330.00 Vice President ................................................................... $275.00 Assistant Vice President .................................................... $235.00 Senior Associate ................................................................ $200.00 Associate ........................................................................... $180.00 Analyst .............................................................................. $115.00 Administrative Assistant ..................................................... $90.00 Clerical ................................................................................ $55.00 Hourly Compensation will be billed on a monthly basis and are due thirty (30) days from invoice date. Invoices not paid within sixty (60) days are subject to a two percent (2.00%) late fee for every month payment is late. 4.8.a Packet Pg. 138 CITY OF DIAMOND BAR/FIELDMAN, ROLAPP & ASSOCIATES, INC. Exhibit B, Page 2 FRA Project No. 21158 1568494.1 Expenses Expenses will be billed for separately and will cover, among other things, travel, lodging, subsistence, overnight courier, conference calls, and computer charges. Advances made on behalf of the City for costs of preparing, printing or distributing disclosure materials or related matter whether by postal services or electronic means, may also be billed through to the City upon prior authorization. Additionally, a surcharge of six percent (6.00%) of the compensation amount is added to verifiable out-of-pocket costs for recovery of costs such as telephone, postage, document reproduction and the like. Limiting Terms and Conditions The above compensation is based on completion of work orders within six months of the City's authorization to proceed, and assumes that the City will provide all necessary information in a timely manner. The fee referenced in Part 1 above, presumes attendance at up to 6 meetings in the City's offices or such other location within a 25-mile radius of the City place of business as the City may designate. Preparation for, and attendance at City Council meetings on any basis other than "by appointment" may be charged at our normal hourly rates referenced in Part 2 above. 4.8.a Packet Pg. 139 CITY OF DIAMOND BAR/FIELDMAN, ROLAPP & ASSOCIATES, INC. Exhibit C, Page 1 FRA Project No. 21158 1568494.1 EXHIBIT C TO PROFESSIONAL SERVICES AGREEMENT FOR MUNICIPAL ADVISOR BY AND BETWEEN THE CITY OF DIAMOND BAR AND FIELDMAN, ROLAPP & ASSOCIATES, INC. MSRB Rule G-42 requires that municipal advisors provide to their clients disclosures relating to all material conflicts of interest, including certain categories of potential conflicts of interest identified in Rule G-42, if applicable. With respect to all aspects of the relationship between Consultant and the City, Consultant adheres to its fiduciary duty to the City, which includes a duty of loyalty to the City in performing all municipal advisory activities for the City. The duty of loyalty obligates Consultant to deal honestly and with the utmost good faith with the City and to act in the City’s best interest without regard to any interest Consultant has or may have. Consultant has a wide range of clients so our success and profitability are not dependent on maximizing short- term revenue generated from individual recommendations to our clients but is instead dependent on long-term profitability based on a foundation of integrity, quality and adherence to our fiduciary duty. Furthermore, Consultant’s supervisory structure provides strong safeguards against individual representatives of Consultant violating their duty due to personal interests. Consultant makes the following representations to the City with regard to the Services: A. Other than the compensation described in the Agreement, we have no other interest, direct or indirect, that would interfere with or impair in any matter or degree the performance of our obligations. During our work on the Services, we do not intend to acquire or obtain any such interest, direct or indirect. If any such interest is acquired or obtained, we will immediately advise the City. B. We have not provided any gift or consideration to any officer, employee or agent of the City to either obtain the Agreement or any assignment from the City, including the Services. Neither our firm, nor its officers or employees will provide any such gift or consideration to any officer, employee or agent of the City to influence decisions with regard the Services or our obligations under the Agreement. C. Our compensation for the Services and is contingent on the completion of the Project. While this form of compensation is customary in the market for financial services to municipal entities, this may present conflict of interest as we would have an incentive to recommend to the City the Project even if it is unnecessary or provides insufficient benefit or advise the City to increase the size of the Project. This potential conflict is mitigated by Consultant’s fiduciary duty to the City. D. The City has employed and may employ Consultant through its d/b/a Applied Best Practices (“ABP”), with regard to the performance of its continuing disclosure obligations. This relationship has the potential to result in a conflict of interest by creating an incentive for Consultant to recommend to the City a course of action that would increase the City’s business activity with ABP or conversely that would discourage a course of action that would decrease the City’s business activity with ABP. The conflict is mitigated by Consultant’s fiduciary duty to the City. Moreover, if Consultant makes a recommendation that could influence the level of business with ABP, Consultant will consider alternatives to the recommendation, which will be disclosed to the City. 4.8.a Packet Pg. 140 CITY OF DIAMOND BAR/FIELDMAN, ROLAPP & ASSOCIATES, INC. Exhibit C, Page 2 FRA Project No. 21158 1568494.1 Information Regarding Legal Events and Disciplinary Actions MSRB Rule G-42 requires that municipal advisors provide their clients disclosures of legal or disciplinary events material to the evaluation of the municipal advisor or the integrity of the municipal advisor’s management or advisory personnel. Consultant sets out required disclosures and related information below: A. There are no legal or disciplinary events material to the City’s evaluation of Consultant or the integrity of Consultant’s management or advisory personnel disclosed, or that should be disclosed, on any Form MA or Form MA-I with the Securities and Exchange Commission (the “SEC”). Consultant’s most recent Form MA and each most recent Form MA-I filed with the SEC are available on the SEC’s EDGAR system at http://www.sec.gov/cgi-bin/browse- edgar?action=getcompany&CIK=0001612429 Contents of Client Brochure The MSRB requires us to provide you with the following information: Consultant is registered as a “Municipal Advisor” pursuant to Section 15B of the Securities Exchange Act and rules and regulations adopted by the SEC and the MSRB. The MSRB has made available on its website (www.msrb.org) a municipal advisory client brochure that describes the protections that may be provided by MSRB rules and how to file a complaint with the appropriate regulatory authority. 4.8.a Packet Pg. 141 4.8.b Packet Pg. 142 Terms of Retention April 6, 2021 Page 2 NG-U9ZQVMF2/4843-5979-2610v3/200928-0001 The undersigned hereby agrees that the terms and conditions in this letter and the accompanying Terms of Retention shall apply to services rendered by Stradling Yocca Carlson & Rauth. CITY OF DIAMOND BAR By: City Manager 4.8.b Packet Pg. 143 NG-U9ZQVMF2/4843-5979-2610v3/200928-0001 TERMS OF RETENTION OF STRADLING YOCCA CARLSON & RAUTH 1. Fees and Costs. Stradling Yocca Carlson & Rauth, a Professional Corporation (the “Firm”), is compensated for its services based primarily on the value of the services and the time spent performing them. Such compensation may include the time spent on client conferences, travel, research, drafting documents and other activities. The amount of fees charged on a statement is determined by the hours expended by the different attorneys and other professional personnel involved and the applicable rates. Except for bond and disclosure counsel matters described below, payment is due within thirty days of the date of receipt of each fee and costs statement of the Firm. Statements paid more than 60 days after the date of submission will be charged interest of 10% per annum. If the City of Diamond Bar or the City of Diamond Bar Public Financing Authority (collectively, the “City”) wishes to question any charge, the City agrees to do so within thirty days of the statement date. The City agrees to contact a primary attorney in charge of the City’s matters with any questions about any of the City’s bills. For bond and disclosure counsel matters, payment is contingent on the bond issuance and is payable upon closing from bond proceeds. A scope of service and the not-to-exceed fixed fee for the proposed bond issuance is set forth in the attached Exhibit A, which is incorporated herein by this reference. The Firm also charges for various costs such as copying, telephone charges, computerized legal research, word processing and/or other computer time, overtime costs, messenger services, travel, filing fees and other costs. Bills for some costs are passed on directly, such as bills for certified shorthand reporters, technical consultants and other professional fees. For bond and disclosure counsel matters, these expenses are all included in the fixed amount that is set forth in Exhibit A. Services unrelated to specific transactions, including but not limited to post-closing compliance matters, arbitrage rebate compliance, continuing disclosure compliance and representation of the City in connection with Internal Revenue Service, federal or state securities law or other regulatory matters and other post-closing matters, shall be subject to a written amendment to this agreement and will be billed in accordance with such written amendment. 2. Termination by the Firm. The Firm reserves the absolute right to withdraw from representing the City if the City fails to honor the terms of this agreement or fails to cooperate fully or follow the Firm’s advice on a material matter, or any fact or circumstance occurs that would, in the Firm’s view, render the Firm’s continuing representation unlawful or unethical. If the Firm elects to withdraw, the City will take all steps necessary to free the Firm of any obligation to perform further services, including the execution of any documents necessary to complete the Firm’s withdrawal, and the Firm will be entitled to be paid at the time of withdrawal for all services rendered and costs and expenses paid or incurred on the City’s behalf. Notwithstanding the foregoing, no portion of any contingent bond or disclosure counsel fee shall be payable in the event 4.8.b Packet Pg. 144 City of Diamond Bar April 6, 2021 Page 2 NG-U9ZQVMF2/4843-5979-2610v3/200928-0001 that the Firm terminates its representation of the City as discussed above prior to closing of the proposed transaction. If necessary in connection with litigation, the Firm will request leave of court to withdraw. 3. Termination by City. The Firm understands that it serves at the pleasure of the City and this agreement may be terminated by the City at any time, upon 10 days written notification with or without cause. In the event that the Firm’s services are terminated prior to completion of a bond issuance, no portion of any contingent bond or disclosure counsel fee shall be payable to the Firm, but actual out-of-pocket expenses will be reimbursed. 4. Date of Termination. The Firm’s representation of the City will be considered terminated at the earlier of: (i) the City’s termination of the Firm’s representation; (ii) the Firm’s withdrawal from representation of the City; or (iii) the completion of the Firm’s substantive work for the City. 5. Related Activities. If any third-party claim or action is brought against us or any personnel or agents of the Firm based on the City’s sole negligence or sole misconduct, or if the Firm must defend the confidentiality of the City’s communications in any proceeding, the City agrees to pay the Firm the actual cost of any resulting fees, costs or damages, including the Firm’s time, even if the Firm’s representation of the City has ended. 6. No Guarantee of Outcome. The Firm will provide its services consistent with the level and quality of expertise expected of a nationally recognized firm specializing in securities law and the transaction contemplated by this agreement. The Firm does not and cannot guarantee any outcome in a matter. 7. Insurance and Indemnification. A. The Firm shall indemnify, defend, and hold harmless the City, its officers, employees, agents and volunteers (“City indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Firm’s performance of its obligations under this agreement or out of the operations conducted by the Firm, including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City up to the limits of the Firm’s professional errors and omission insurance coverage described in Part C.3 below. In the event the City indemnitees are made party to any action, lawsuit, or other adversarial proceeding arising from the Firm’s performance of this agreement, the Firm shall provide a defense to the City indemnitees, or at the City’s option, reimburse the City indemnitees their costs of defense, including reasonable legal counsels’ fees, incurred in defense of such claims up to the limits of the Firm’s professional errors and omission insurance coverage described in Part C.3 below. B. As respects to all acts or omissions which do not arise directly out of the performance of services, including but not limited to those acts or omissions normally covered by general liability insurance, the Firm agrees to indemnify, defend (at the City’s option), and hold harmless the City, its elected and appointed officers, agents, employees, representatives, and volunteers from and against any and all claims, demands, defense costs, liability, or consequential 4.8.b Packet Pg. 145 City of Diamond Bar April 6, 2021 Page 3 NG-U9ZQVMF2/4843-5979-2610v3/200928-0001 damages of any kind or nature arising out of or in connection with the Firm (or the Firm’s subcontractors, if any) performance or failure to perform, under the terms of this Agreement up to the limits of the Firm’s professional errors and omission insurance coverage described in Part C.3 below; except to the extent those which arise out of the sole negligence or willful misconduct of the City. C. Without limiting the City’s right to indemnification, it is agreed that the Firm shall secure prior to commencing any activities under this Agreement, and maintain during the term of this Agreement, insurance coverage as follows: 1. Workers Compensation and Employer’s Liability: The Firm shall maintain Workers’ compensation insurance as required by California statutes and Employer’s Liability Insurance with limits of at least one million dollars ($1,000,000). The Firm shall submit to the City, along with the certificate of insurance, a waiver of subrogation endorsement in favor of City, its officers, agents, employees and volunteers. 2. Commercial General Liability: The Firm shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than One Million Dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. The Firm’s general liability policies shall be primary and shall not seek contribution from the City’s coverage and be endorsed using Insurance Services Office form CG 20 10 (or equivalent) to provide that the City and its officers, officials, employees, and agents shall be additional insureds under such policies. The Firm shall submit to the City a certificate of insurance evidencing such coverage. Any failure to comply with reporting provisions of the policies by the Firm shall not affect coverage provided the City. Coverage shall state the Firm’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. Coverage shall contain a waiver of subrogation in favor of the City. 3. Professional Liability Insurance: The Firm shall maintain professional liability insurance that insures against professional errors and omissions that may be made in performing the Services to be rendered in connection with these Terms of Retention, in the minimum amount not less than One Million Dollars ($1,000,000) per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement, and the Firm agrees to maintain continuous coverage through a period no less than three years after completion of the services required of this agreement. The Firm shall submit to the City a certificate of insurance evidencing such coverage. 8. Client. The City Council of the City is the Firm’s client. Unless expressly agreed, the Firm is not undertaking the representation of any related or affiliated person or entity, nor any 4.8.b Packet Pg. 146 City of Diamond Bar April 6, 2021 Page 4 NG-U9ZQVMF2/4843-5979-2610v3/200928-0001 parent, subsidiary or affiliated corporation or entity, nor any of the City’s or their officers, directors, agents, or employees. 9. Payment Notwithstanding Dispute. In the event of any dispute that relates to the Firm’s entitlement to any payment from the City, all undisputed amounts shall be paid by the City to the Firm’s client trust account. Any amounts in any client trust account held on the City’s behalf, sufficient to pay the disputed amounts, shall continue to be held in such trust account until the final disposition of the dispute. 10. Arbitration. The Firm appreciates the opportunity to serve as the City’s attorneys and anticipates a productive and harmonious relationship. If the City should feel for any reason that there is a problem with the services that the Firm has performed or with the Firm’s charges, the Firm encourages the City to bring such matters to the Firm’s attention immediately. If the Firm perceives a problem with representation of the City, the Firm will likewise endeavor to discuss it with the City. Most problems should be rectified by communication and discussion. However, a dispute might arise between the Firm and the City which could not be resolved by negotiation. The Firm believes that such attorney-client disputes are most satisfactorily resolved through final and binding arbitration rather than by litigation. Both the United States Supreme Court and the California Supreme Court have endorsed arbitration as an accepted and favored method of resolving disputes, because it is economical and expeditious. In arbitration, there is no right to a trial by jury and the arbitrator’s legal and factual determinations are generally not subject to appellate review. Arbitration rules of evidence and procedure are often less formal and less rigid than the rules which apply in courts. Arbitration usually results in a decision much more quickly than proceedings in courts, and the attorneys’ fees and other costs incurred by both sides may be substantially less. The City is free to discuss the advisability of arbitration with the Firm or with the City’s own independent counsel or any of the City’s other advisors, and to ask any questions which the City may have. By signing this Terms of Retention, the Firm and the City agree that, in the event of any dispute or claim arising out of or relating to this agreement, such dispute or claim shall be resolved by submission to final and binding arbitration in Los Angeles County, California, before a retired judge or justice. By agreeing to arbitrate the parties waive any right they may have to a court or jury trial. Venue with regard to any ancillary proceedings arising out of such dispute or claim shall also be in Los Angeles County. If the Firm and the City are unable to mutually agree on a retired judge or justice, then each side will name one retired judge or justice and the two named persons will select a neutral judge or justice who will act as the sole arbitrator. The fees of the arbitrator will be paid equally by both the Firm and the City. In arbitration, the Firm and the City shall both be entitled to conduct discovery in accordance with the provisions of the California Code of Civil Procedure, but either the Firm or the City may request that the arbitrator limit the amount or scope of such discovery and, in determining whether to do so, the arbitrator shall balance the need for the discovery against the parties’ mutual desire to resolve disputes expeditiously and inexpensively. 4.8.b Packet Pg. 147 City of Diamond Bar April 6, 2021 Page 5 NG-U9ZQVMF2/4843-5979-2610v3/200928-0001 Under California law, the City has the right, if desired, to request arbitration of any fee dispute before an arbitrator or panel of arbitrators selected by a local bar association or the State Bar (a “Bar Arbitration”) and a trial de novo in court if dissatisfied with the result. If the City does request a Bar Arbitration, the law provides that evidence of any claim of malpractice or professional misconduct is admissible only concerning the fees or costs in dispute and that the Bar Arbitrators shall not award any affirmative relief in the form of damages, offset or otherwise on account of such claim. By signing this agreement, the City agrees that if a Bar Arbitration is conducted, that Bar Arbitration or any trial de novo in court thereafter shall determine only the issue of the amount of fees properly chargeable to the City, if any, and that such Bar Arbitration or trial de novo in Court thereafter shall have no effect on the provisions set forth above which require arbitration before a retired judge or justice of any claims for affirmative relief based on alleged professional malpractice, errors or omissions, breach of conduct, breach of fiduciary duty, fraud or violation of any statute. Any such claims shall be solely determined in an arbitration proceeding by a retired judge or justice without regard to the result of any Bar Arbitration or trial de novo thereafter. 11. Other Clients. As a law firm with many diverse clients and practice areas, the Firm seeks to retain the ability to accept unrelated matters for all of the Firm’s clients. We may thus request your informed written consent in the event that the Firm seeks to represent any other client in any future matter that is not substantially related to this matter and does not involve material confidential information that the Firm obtained while representing the City in this matter. Such matters could arise during our representation of the City in this matter. The City may determine to consent or not consent to such request and should feel free to consult independent counsel of the City’s choice before deciding whether to grant any consent should it be requested. The Firm represents various public agencies throughout California on bond and disclosure counsel matters. The Firm has not represented and will not represent such agencies on any matter adverse to the City while engaged by the City on this matter. The Firm represents various investment banks, placement agents and underwriters from time to time on transactions for public agencies other than transactions for the City. The Firm is not representing any investment bank, placement agent or underwriter (or any other party other than the City) on this transaction. 12. Primary Attorneys. The primary attorney with responsibility for this representation will be Brian P. Forbath and Cyrus Torabi. The parties agree that the Firm is being retained based on the unique skill, experience, and expertise of Messrs. Forbath and Torabi and no change will be made in the primary attorney without the prior, written consent of the City. CITY OF DIAMOND BAR By: City Manager 4.8.b Packet Pg. 148 4.8.b Packet Pg. 149 A-1 NG-U9ZQVMF2/4843-5979-2610v3/200928-0001 EXHIBIT A SCOPE OF SERVICES As bond counsel and disclosure counsel, Stradling Yocca Carlson & Rauth, a Professional Corporation (the “Firm”), will undertake the following Scope of Services on the proposed transaction: 1. Preparation of Legal Documents on Behalf of City. Provide bond counsel services in connection with the proposed refinancing of the City of Diamond Bar Public Financing Authority Fixed Rate Lease Revenue Bonds, 2002 Series A (Community/Senior Center Project), including but not limited to:  advice and consultation with the City Manager, Finance Director, City Attorney and City Council regarding the proposed issuance of bonds by the City, proposed financial covenants and the financing process;  preparation of all legal proceedings of the City in connection with the proposed bond issuance;  drafting various resolutions, documents and agreements for consideration by the City Council;  participating in meetings, hearings or negotiations with City staff, the City Council, the City’s municipal advisor, underwriter, underwriter’s counsel and other financing team members as the circumstances require;  review and negotiate a bond purchase contract prepared by counsel to the underwriter;  prepare final closing documents to be executed by the City to effect delivery of bonds and coordinate the adoption and execution of all documents and of the closing; and  deliver a final approving opinion with respect to the proposed obligations and a supplemental opinion to the underwriter with respect to the enforceability of the bond purchase contract and the accuracy of the summaries of certain transaction documents contained under specified captions in the official statement. 2. Assistance in Preparation of Offering Documents on Behalf of City. Provide disclosure counsel services in connection with the proposed refinancing of the City of Diamond Bar Public Financing Authority Fixed Rate Lease Revenue Bonds, 2002 Series A (Community/Senior Center Project), including but not limited to:  prepare federal securities law disclosure policies and procedures for the City, if requested;  conduct federal securities law disclosure training for City staff, if requested; 4.8.b Packet Pg. 150 City of Diamond Bar April 6, 2021 Exhibit A Page 2 A-2 NG-U9ZQVMF2/4843-5979-2610v3/200928-0001  draft a continuing disclosure undertaking compliant with Securities and Exchange Commission Rule 15c2-12;  conduct a due diligence review of two years of City Council meeting minutes;  assist the City in the preparation of a preliminary official statement and final official statement; and  deliver a final negative assurance letter to the underwriter pursuant to Securities and Exchange Commission Rule 10b-5. 3. Fixed Fee Proposed. In accordance with our proposal: Bond and Disclosure Counsel: The Firm proposes an all-inclusive not-to-exceed fee of $55,000 to serve as bond counsel (including the preparation of a transcript and the delivery of standard closing tax and validity opinions) and disclosure counsel (including the preparation of a preliminary official statement and an official statement and the delivery of a standard negative assurance letter) for the refinancing of the City of Diamond Bar Public Financing Authority Fixed Rate Lease Revenue Bonds, 2002 Series A (Community/Senior Center Project). The above fee quotation will in all cases be contingent upon the issuance of the bonds. Moreover, the above fee quotation is inclusive of costs. The Firm does not propose to charge the City any amounts in addition to those set forth above for costs in connection with the bond financing, including travel to and from the City for appearances at one or more City Council meetings and/or one or more working group conferences, but excluding travel to and from rating agency offices in San Francisco, if required. 4.8.b Packet Pg. 151 Agenda #: L.1 Meeting Date: April 6, 2021 TO: Honorable Chair and Members of the Public Financing Authority FROM: Daniel Fox, City Manager TITLE: APPROVAL OF PUBLIC FINANCING AUTHORITY MEETING MINUTES. STRATEGIC GOAL: Open, Engaged & Responsive Government RECOMMENDATION: Approve the December 1, 2020 meeting minutes. FINANCIAL IMPACT: None. BACKGROUND/DISCUSSION: The minutes of the Annual Public Financing Authority meeting on December 1, 2020 have been prepared and are being presented for approval. PREPARED BY: L.1 Packet Pg. 152 REVIEWED BY: Attachments: 1. L.1.a December 1, 2020 Public Financing Authority Minutes L.1 Packet Pg. 153 CITY OF DIAMOND BAR MINUTES OF THE PUBLIC FINANCING AUTHORITY ANNUAL MEETING DECEMBER 1, 2020 Consistent with COVID-19 regulations, all Authority Members and staff participated via teleconference and there was no physical location for public attendance. The Public was invited to join the meeting online or by phone at the numbers printed on the agenda. 1. CALL TO ORDER: Chairman Chou called the meeting to order at 7:07 p.m. 2. ROLL CALL: Authority Members Liu, Lyons, Tye, VC/Low and Chair/Chou Staff participating telephonically: Dan Fox, City Manager; Dave DeBerry, City Attorney; Ryan McLean, Assistant City Manager; Anthony Santos, Assistant to the City Manager; Ryan Wright, Parks and Recreation Director; David Liu, Public Works Director; Hal Ghafari, Public Works Manager/Assistant City Engineer; Greg Gubman, Community Development Director; Dianna Honeywell, Director of Finance; Amy Haug, Human Resources and Risk Manager; Ken Desforges, Director of Information Services; Marsha Roa, Public Information Manager; Cecilia Arellano, Public Information Coordinator; Kristina Santana, City Clerk 3. PUBLIC COMMENTS: None 4. CONSENT CALENDAR: AM/Lyons moved, AM/Tye seconded, to approve the Consent Calendar as presented with AM/Liu abstaining on Con sent Calendar Item 4.1. Motion carried by the following Roll Call vote: AYES: AUTHORITY MEMBERS: Liu, Lyons, Tye, VC/Low, Chair/Chou NOES: AUTHORITY MEMBERS: None ABSENT: AUTHORITY MEMBERS: None 4.1 APPROVED PUBLIC FINANCING AUTHORITY MINUTES – Annual Meeting of December 3, 2019 – As submitted. 4.2 APPROVED PUBLIC FINANCING AUTHORITY TREASURER’S STATEMENT - for November 1, 2019 through October 31, 2020. 5. PUBLIC FINANCING AUTHORITY REORGANIZATION: 5.1 SELECTION OF CHAIR: AM/Low nominated AM/Chou to serve as Chairman of the Public Finance Authority. There were no other nominations offered. AM/Chou was L.1.a Packet Pg. 154 DECEMBER 1, 2020 PAGE 2 PUBLIC FINANCE AUTHORITY unanimously elected to serve as Chairman of the Public Financing Authority by the following Roll Call vote: AM/Liu Yes AM/Low Yes AM/Lyons Yes AM/Tye Yes AM/Chou Yes 5.2 SELECTION OF VICE CHAIR: AM/Low nominated AM/Tye to serve as Vice Chair of the Public Financing Authority. There were no other nominations offered. AM/Tye was unanimously elected to serve as Vice Chair of the Public Financing Authority by the following Roll Call vote: AM/Liu Yes AM/Low Yes AM/Lyons Yes AM/Tye Yes Chair/Chou Yes 6. AUTHORITY MEMBER COMMENTS: AM/Low congratulated Chair/Chou on his reappointment. AM/Liu thanked Chair/Chou and VC/Tye for serving. VC/Tye thanked his colleagues and congratulated Chair/Chou. ADJOURN PUBLIC FINANCING AUTHORITY MEETING: With no further business to conduct, Chair/Chou adjourned the Public Financing Authority meeting at 7:13 p.m. back to the Regular City Council meeting. Respectfully submitted, __________________________ Kristina Santana, City Clerk The foregoing minutes are hereby approved this 6th day of April, 2021. __________________________ Andrew Chou, Chair L.1.a Packet Pg. 155 Agenda #: L.2 Meeting Date: April 6, 2021 TO: Honorable Chair and Members of the Public Financing Authority FROM: Daniel Fox, City Manager TITLE: ESTABLISHING REGULAR MEETINGS OF THE DIAMOND BAR PUBLIC FINANCING AUTHORITY. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: Adopt Resolution No. PFA 2021-01 establishing regular meetings of the Public Finance Authority. FISCAL IMPACT: None. BACKGROUND/ANALYSIS: Public Financing Authority Resolution No. 2011 -03 establishes the regular meeting schedule for the Authority to coincide with the first regular City Council meeting in December. As part of the Diamond Bar Center Bond Refunding process, the Authority will be required to take certain actions at a Regular meeting. Therefore, it is necessary to amend the current schedule. The attached Resolution would rescind the previous Resolution No. PFA 2011-03 and establish regular Public Financing Authority meetings to coincide with all Regular City Council meetings. PREPARED BY: L.2 Packet Pg. 156 REVIEWED BY: Attachments: 1. L.2.a PFA Resolution No. 2021-01 Regular Meeting Dates L.2 Packet Pg. 157 RESOLUTION NO. PFA 2021-01 A RESOLUTION OF THE CITY OF DIAMOND BAR PUBLIC FINANCING AUTHORITY ESTABLISHING REGULAR MEETING DATES The Board of Directors of the City of Diamond Bar Public Financing Authority does hereby find, order and resolve as follows: SECTION I. Recitals. A. The City of Diamond Bar Public Financing Authority (the "Authority") is a joint exercise of powers authority organized and existing under Article I and Article 4 of Chapter 5 of Division 7 of Title I of the Government Code of the State of California (the "JPA Act") for the purpose of assisting its members and any related agencies or subdivisions (the "City") in the financing or refinancing of particular projects; and B. To fulfill its purposes, the Authority, from time to time, authorizes the issuance of bonds or purchases bonds of other local agencies pursuant to the JPA Act; and C. Government Code Section 6592.1 provides that the Authority may adopt a resolution authorizing bonds or any issuance of bonds or accepting the benefit of any bonds or the proceeds of bonds only during a regular meeting of the Authority held pursuant to Government Code Section 54954; and D. Pursuant to Section 3.04(b) of the JPA Agreement, the Board of Directors of the Authority may establish regular meeting dates of the Authority by resolution. E. Pursuant to Authority Resolution Nos. 2011-01 adopted on October 4, 2011 and 2011-03 adopted on December 6, 2011 (the “Prior Resolutions”), the Authority previously established regular meetings dates to coincide with the first regular meeting dates of the City Council of the City in each December, together with certain dates in 2011. F. The Board of Directors desires to rescind the Prior Resolutions and establish regular meeting dates of the Authority to coincide with all regular meeting dates of the City. G. The Authority desires to adopt this resolution in accordance with the provisions of Government Code Section 54954 to establish regular meeting dates. SECTION 2. Regular Meeting Dates. Notwithstanding any provision to the contrary in the joint powers agreement establishing the Authority, any bylaws of the Authority or in any prior resolutions or actions of the Board of Directors of the Authority, from the date hereof, the regular meetings of the Authority shall be held on the same L.2.a Packet Pg. 158 PFA Resolution No. 2021-01 2 day and time as the regularly scheduled meeting of the City Council. In the event that the Secretary determines that there is no business of the Authority to be conducted at a regular meeting, then the Chair, the Secretary and other officers of the Authority are authorized to take whatever actions are required by law to cancel such regularly scheduled meeting. SECTION 3. Other Actions. The Chair, Vice Chair, Executive Director, Treasurer, Secretary and other officers of the Authority are authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable in order to effectuate the purposes of this Resolution, and such actions previously taken by such officers are hereby ratified and confirmed. SECTION 4. Effect. This Resolution shall take effect from and after its date of adoption. PASSED, APPROVED AND ADOPTED this 6th day of April, 2021. ______________________________ Andrew Chou, Chair ATTEST: I, Kristina Santana, Secretary of the Diamond Bar Public Financing Authority of the City of Diamond Bar, California, do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the Public Financing Authority of the City of Diamond Bar, California, at its Special Meeting held on the 6th day of April, 2021, by the following vote: AYES: AUTHORITY MEMBERS: NOES: AUTHORITY MEMBERS: ABSENT: AUTHORITY MEMBERS: ABSTAIN: AUTHORITY MEMBERS: ______________________________ Kristina Santana, Authority Secretary L.2.a Packet Pg. 159 Agenda #: L.3 Meeting Date: April 6, 2021 TO: Honorable Chair and Members of the Public Financing Authority FROM: Daniel Fox, City Manager TITLE: ESTABLISHMENT OF A DIAMOND BAR DEBT MANAGEMENT POLICY. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: That the Public Financing Authority adopt Resolution No. 2021 -02 adopting by reference the Diamond Bar Debt Management Policy (City Council Policy 2021 -21) as required by and in compliance with Government Code Section 8855(i). FINANCIAL IMPACT: None. BACKGROUND: In a separate action by the City Council at the April 6, 2021 meeting, the Council reviewed and approved the Diamond Bar Debt Management Policy (City Council Policy 2021-01). It is appropriate for the Public Financing Authority to also adopt the Debt Management Policy by reference. A Resolution adopting City Council Policy 2021 -01 is included in Attachment 1. In 1981 the California Legislature established the California Debt Advisory Commission as the State's clearinghouse for public debt issuance information and required it to assist state and local agencies with the monitoring, issuance and management of public debt. In 1996 the Legislature changed the name to the California Debt and Investment Advisory Commission (CDIAC) and expanded its mission to co ver public investment and to provide information, education and technical assistance on debt issuance and public fund investments to local agencies and public finance professionals. L.3 Packet Pg. 160 In September 2016 the Legislature enacted Senate Bill 1029 which became e ffective January 1, 2017, which further amended the CDIAC requirements. In particular, Government Code Section 8855(i) was amended to require that all governmental entities establish a Debt Management Policy (“Debt Policy”) if any form o f debt is being contemplated or anticipated to be issued by the entity. Attachment No. 3 contains the text of the legislation. DISCUSSION/ANALYSIS: A Debt Management Policy, consistent with the Government Code Section 8855(i), is being presented for Council consideration. Government Code Section 8855(i), as amended by SB 1029, requires: • CDIAC to track and report on all state and local outstanding debt until fully repaid or redeemed. • The report of proposed debt include a certification by the issuer that it has adopted local debt policies, which include specified provisions concerning the use of debt and that the contemplated debt issuance is consistent with those local debt policies. • A state or local public agency to submit an annual report for any issue of debt. The City staff, financial advisor Fieldman, Rolapp & Associates, Inc., and special counsel Stradling, Yocca, Carlson & Rauth have prepared the City’s proposed Debt Management Policy (Attachment No. 2) for City Council consideration and approval as required by CDIAC, which meets all of the requirements of SB 1029, yet preserves flexibility for the City in managing its debt. As presented in the proposed Debt Management Policy, the primary objectives of the City's debt and financing-related activities are to: a) Maintain the City's sound financial position; b) Ensure the City has the flexibility to respond to possible changes in future service obligations, revenues, and operating expenses; c) Ensure that all debt is structured in order to protect both current and future taxpayers, ratepayers and constituents of the City; d) Minimize debt service commitments through efficient planning and cash management; e) Protect the City's credit worthiness and achieve the highest practical credit ratings, when applicable; and f) Ensure the City is in compliance with all relevant State and Federal securities laws and other applicable laws and regulations. Establishing this new Debt Management Policy is timely and a necessary part of the L.3 Packet Pg. 161 City undertaking the proceedings to refund the 2011 Fixed Rate Lease Revenue Bonds for the Diamond Bar Center. Thus, it is now timely and necessary for the City Council to consider and adopt a debt management policy that meets the requirements of Government Code section 8855(i), as amended by SB 1029. The Debt Policy presented with this agenda report meets these State Law requirements, while preserving flexibility for the City in the management of its debt. LEGAL REVIEW: The City Attorney has reviewed and approved the Diamond Bar Debt Management Policy as to form. PREPARED BY: REVIEWED BY: Attachments: 1. L.3.a PFA Resolution No. 2021-02 Debt Management Policy 2. L.3.b CC 2021-01 Debt Management Policy 04-06-2021 3. L.3.c Gov Code Section 8855i L.3 Packet Pg. 162 RESOLUTION NO. PFA 2021-02 A RESOLUTION OF THE PUBLIC FINANCING AUTHORITY OF THE CITY OF DIAMOND BAR ADOPTING THE DIAMOND BAR DEBT MANAGEMENT POLICY. The Board of Directors of the City of Diamond Bar Public Financing Authority does hereby find, order and resolve as follows: SECTION 1. Recitals. A. In order to issue bonds, Section 8855(i) of the California Government Code (“Section 8855(i)”) requires each bond issuer and bond obligor to adopt a debt management policy. B. In order to enable the City of Diamond Bar (the “City”) to issue bonds or to serve as an obligor with responsibility for payments securing bonds issued by the City of Diamond Bar Public Financing Authority or other agencies in the future, the City wishes to approve a debt management policy (the “Debt Policy”) in the form that is presented at this meeting. C. The Board of Directors has been presented with the form of Debt Policy that is referred to herein, and the Board of Directors has examined and approved the Debt Policy and desires to adopt the Debt Policy as the debt management policy of the City pursuant to Section 8855(i). D. All acts, conditions and things that are required by the laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of the matters that are authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such matters for the purpose, in the manner and upon the terms herein provided. SECTION 2. Approval of Debt Policy. The form of Debt Policy presented at this meeting and attached hereto as Exhibit A is hereby approved and adopted as the debt management policy of the City pursuant to Section 8855(i). SECTION 3. Further Action. The Chair, the Vice Chair, the Executive Director and the Finance Director are hereby authorized, empowered and directed, individually, to execute such other documents in addition to those enumerated herein and to take such other actions as each deems necessary or advisable in order to effectuate the purposes of this Resolution and any such actions previously taken by such officers are hereby ratified, confirmed and approved. SECTION 4. Attestations. The Secretary and such person or persons as may have been designated by the Secretary to act on the Secretary’s behalf, are hereby L.3.a Packet Pg. 163 PFA Resolution No. 2021-02 2 authorized and directed to attest the signature of the Authorized Officers designated herein to execute any documents described herein, and to affix and attest the seal of the City, as may be required or appropriate in connection with th e execution and delivery of the documents that are described herein. SECTION 5. Effect. This Resolution shall take effect immediately upon its passage. SECTION 6. Certification. The Secretary shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. PASSED, APPROVED, and ADOPTED on this 6th day of April, 2021. ______________________________ Andrew Chou, Chair ATTEST: I, Kristina Santana, Secretary of the Diamond Bar Public Financing Authority of the City of Diamond Bar, California, do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the Public Financing Authority of the City of Diamond Bar, California, at its Special Meeting held on the 6th day of April, 2021, by the following vote: AYES: AUTHORITY MEMBERS: NOES: AUTHORITY MEMBERS: ABSENT: AUTHORITY MEMBERS: ABSTAIN: AUTHORITY MEMBERS: ______________________________ Kristina Santana, Authority Secretary L.3.a Packet Pg. 164 PFA Resolution No. 2021-02 3 EXHIBIT A DIAMOND BAR DEBT MANAGEMENT POLICY CITY COUNCIL POLICY 2021-01 L.3.a Packet Pg. 165 City Council Policy and Procedure Number: (2021-01) Reviewed: Annually/As-Needed Effective Date: 04/06/2021 Revised Date(s): N/A City Council Policy (2021-01) Effective Date: 04/06/2021 Page 1 of 10 Debt Management Policy 1. Purpose 1.1 The purpose of this Debt Policy is to establish guidelines and parameters for the effective governance, management and administration of debt and other financing obligations issued by the City and its related entities (such as, but not exclusive to, the Diamond Bar Public Financing Authority). This Debt Policy is intended to improve and direct decision making, assist with the structure of debt issuance, identify policy goals, and demonstrate a commitment to long-term planning, including the City’s Five-Year Financial Plan. Adherence to a debt policy helps to ensure the City’s debt is issued and managed prudently to maintain a sound financial position and credit worthiness. When used in this Debt Policy, “debt” refers to all indebtedness and financing obligations of the City and its related entities (together referred to as “City”). 2. Objectives 2.1 This Debt Policy is intended to comply with the requirements of Senate Bill 1029 (SB 1029), codified as part of California Government Code Section 8855(i), effective on January 1, 2017 and shall govern all debt undertaken by the City. The primary objectives of the City's debt and financing related activities are to: 2.1.1 Maintain the City's sound financial position. 2.1.2 The City will strive to maintain at least a long-term credit rating of “A” or its equivalent from any nationally recognized securities rating agency selected by the City. 2.1.3 Ensure the City has the flexibility to respond to possible changes in future service obligations, revenues, and operating expenses. 2.1.4 Ensure that all debt is structured in order to protect both current and future taxpayers, ratepayers and constituents of the City. 2.1.5 Minimize debt service commitments through efficient planning and cash management. L.3.b Packet Pg. 166 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 2 of 10 2.1.6 Protect the City's credit worthiness and achieve the highest practical credit ratings, when applicable. 2.1.7 Ensure the City is in compliance with all relevant State and Federal securities laws and other applicable laws and regulations. 3. Acceptable Uses of Debt Proceeds 3.1 The City will consider the use of debt financing primarily for assets and capital projects only if the term of debt shall not exceed the asset(s) or project’s useful life or will otherwise comply with Federal tax law requirements. An exception to this long-term driven focus is the issuance of short-term instruments, such as tax and revenue anticipation notes, which are to be used for reasonable cash management purposes, as described below. Bonded debt should not be issued to finance normal operating expenses. General Fund debt will not be issued to support ongoing operational costs unless such debt issuance achieves net operating cost savings and such savings are verified by independent analysis. 3.1.1 Long-Term Debt a. Long-term debt may be issued to finance the construction, acquisition, and rehabilitation of capital improvements and facilities, equipment, and land to be owned and/or operated by the City. Long-term debt financings are appropriate when any of the following conditions exist: (1) When the project to be financed is necessary to provide basic municipal services; (2) When the project to be financed will provide benefit to the City’s constituents over a duration of more than five years; (3) When the total debt financing would not impose an unreasonable burden on the City and its taxpayers and/or ratepayers, as applicable; or (4) When the debt is used to refinance outstanding debt in order to produce debt service savings or to benefit from debt restructuring. L.3.b Packet Pg. 167 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 3 of 10 b. The City may use long-term debt financings subject to each of the following conditions: (1) The project to be financed has been or will be considered and approved by the City Council; (2) Generally, the weighted average maturity of the debt should not exceed 120 percent of the weighted average economic life of the projects or equipment being financed, unless there are specific circumstances that would mitigate the extension of time to repay the debt and it would not result in violation of any covenants to maintain the tax- exempt status of such debt, if applicable; (3) The City estimates that sufficient revenues will be available to service the debt through its maturity; and (4) The City determines that the issuance of the debt will comply with the applicable requirements of State and Federal law. 3.1.2 Short-Term Debt - Short-term debt may be issued to provide financing for the City's operational cash flows in order to maintain a steady and even cash flow balance. Short-term debt may also be used to finance the City's short-lived capital projects, such as undertaking lease-purchase financing for equipment. 3.1.3 Financings on Behalf of Other Entities - The City may also issue debt on behalf of other governmental agencies or private third parties in order to further the public purposes of the City. In such cases, the City shall take reasonable steps to confirm the financial feasibility of the project to be financed, the financial solvency of any borrower, and that the issuance of such debt is consistent with the policies set forth herein. 4. Standards for Use of Debt Financing 4.1 The City recognizes that there are numerous types of financing structures and funding sources available, each with specific benefits, costs, and risks. The City will consider debt issuance only in those cases where public policy, equity and economic efficiency favor debt financing over cash funding. Prior to the issuance of debt or other financing obligations, the City will carefully consider the overall long-term affordability of the L.3.b Packet Pg. 168 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 4 of 10 proposed debt issuance by conducting an objective analysis of the City's ability to support additional debt service payments. The City will consider its long-term revenue and expenditure trends, the impact on operational flexibility and the overall debt burden on the taxpayers/ratepayers. The evaluation process shall include a review of generally accepted measures of affordability and will strive to achieve and/or maintain debt levels consistent with its current operating and capital needs. 5. Types of Debt 5.1 In order to maximize the financial options available to benefit the public, it is the City’s policy to allow the consideration of issuing all generally accepted types of debt, including, but not exclusive to the following: 5.1.1 General Obligation (GO) Bonds: a. GO Bonds are suitable for use in the construction or acquisition of improvements to real property that benefit the public at large. The California Government Code, Division 4, Chapter 4, Article 1 commencing with section 43600 authorizes cities to finance certain municipal improvements through GO bonds when a city determines the public interest and necessity demands the acquisition, construction or completion of such municipal improvements, including property or structures necessary or convenient to carry out the objects, purposes, and powers of a city. b. Examples of projects include but are not limited to libraries, parks, public services, and public safety facilities. All GO bonds shall be authorized by the requisite number of voters in order to pass. 5.1.2 Revenue Bonds/Certificates of Participation (COPs) - Revenue Bonds and COPs are limited-liability obligations tied to a specific enterprise or special fund revenue stream where the projects financed clearly benefit or relate to the enterprise or are otherwise permissible uses of the special revenue. Generally, no voter approval is required to issue this type of obligation but in some cases, the City must comply with proposition 218 regarding rate adjustments. L.3.b Packet Pg. 169 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 5 of 10 5.1.3 Joint Powers Authority (JPA) Lease Revenue Bonds - As an alternative to COPs, the City may obtain financing through the issuance of debt by a joint exercise of powers agency with such debt payable from amounts paid by the City under a lease, installment sale agreement, or contract of indebtedness. 5.1.4 Loans - The City is authorized to enter into loans, installment payment obligations, or other similar funding structures secured by a prudent source or sources of repayment. 5.1.5 Special Assessment/Special Tax Debt - The City will consider requests from developers for the use of debt financing secured by property-based assessments or special taxes in order to provide for necessary infrastructure for new development under guidelines adopted by City Council, which may include minimum value-to-lien ratios and maximum tax burdens. Examples of this type of debt are Assessment Districts (ADs) and Community Facilities Districts (CFDs), also known as Mello-Roos Districts. In order to protect bondholders as well as the City's credit rating, the City will also comply with all State guidelines regarding the issuance of special tax or special assessment debt. 5.1.6 Tax Increment Financing - Tax Increment Financing provides options to finance infrastructure and economic development projects using as a repayment stream property tax revenues generated above an established “base year” value (tax increment). The City may consider tax increment financing to the extent permitted under State law. Examples include tax allocation bonds, which are special obligations secured by the allocation of tax increment revenues generated by increased property taxes in a designated redevelopment project area, as well as debt issued by Enhanced Infrastructure Financing Districts (EIFDs) or Community Revitalization and Investment Authorities (CRIAs). When considering tax increment financing mechanisms permitted by law, the City should analyze the practical viability of the proposed financing and take into account the potential impact of the proposed structure on existing debt limitations. L.3.b Packet Pg. 170 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 6 of 10 5.1.7 Short-Term Debt: a. Short-term borrowing, such as commercial paper, Tax and Revenue Anticipation Notes (TRANS), and lines of credit, will be considered as an interim source of funding in anticipation of long-term borrowing and may be issued to generate funding for cash flow needs. The final maturity of the debt issued to finance the project shall be consistent with the useful life of the project. b. Short-term debt may also be used to finance short-lived capital projects such as lease-purchase financing for equipment. 5.1.8 Refunding Bonds: a. The City shall refinance debt pursuant to the authorization that is provided under California law, including but not limited to Articles 10 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, as market opportunities arise. Refundings may be undertaken in order: (1) To take advantage of lower interest rates and achieve debt service costs savings; (2) To eliminate restrictive or burdensome bond covenants; or (3) To restructure debt to lengthen the duration of repayment, relieve debt service spikes, reduce volatility in interest rates or free up reserve funds. b. Generally, the City shall strive to achieve a minimum of 3% net present value savings. The net present value assessment shall factor in all costs, including issuance, escrow, and foregone interest earnings of any contributed funds on hand. Refundings which produce a net present value savings of less than 3% will be considered on a case-by-case basis. Upon the advice of the Finance Director and with the assistance of a financial advisor and bond counsel, the City will consider undertaking refundings for other than economic purposes based upon a finding that such a restructuring is in the City's overall best financial interest. L.3.b Packet Pg. 171 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 7 of 10 The City may from time to time find that other forms of debt would be beneficial to further its public purposes and may approve such debt without an amendment of this Debt Policy. However, the other form or forms of debt must comply with this Debt Management Policy. c. Debt shall be issued as fixed rate debt unless the City makes a specific determination as to why a variable rate issue would be beneficial to the City in that circumstance. 6. Relationship to Capital Improvement Program and Operating Budget 6.1 The City intends to issue debt for the purposes stated in this Debt Policy and the decision to incur new indebtedness should be integrated with the City Council-adopted annual Operating Budget and Capital Improvement Program Budget. Prior to issuance of debt, a reliable revenue source shall be identified to secure repayment of the debt and the annual debt service payments shall be included in the Operating Budget. The City shall integrate its debt issuances with the goals of its Capital Improvement Program by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City's public purposes. 7. Policy Goals Related to Planning Goals and Objectives 7.1 This Debt Policy has been adopted to assist with the City’s goal of financial sustainability and financial prudence. In following this Debt Policy, the City shall pursue the following policy goals: 7.1.1 The City is committed to financial planning, maintaining appropriate reserves levels and employing prudent practices in governance, management and budget administration. The City intends to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the City's annual Operating Budget; 7.1.2 It is a policy goal of the City to protect taxpayers, ratepayers and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings, if applicable, and the lowest practical borrowing costs; L.3.b Packet Pg. 172 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 8 of 10 7.1.3 It is a policy goal of the City to reduce the unfunded liabilities for employee pension and other post-employment benefits (OPEB); 7.1.4 The City will comply with applicable State and Federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates and charges; and 7.1.5 When refinancing debt, it shall be the policy goal of the City to achieve, whenever possible and subject to any overriding non- financial policy, minimum aggregate net present value debt service savings of at least 3% of the refunded principal amount. 8. Internal Control Procedures 8.1. When issuing debt, in addition to complying with the terms of this Debt Policy, the City shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post-issuance compliance, and investment of bond proceeds. The City will periodically review the requirements of and will remain in compliance with the following: a. Federal securities law, including any continuing disclosure undertakings under SEC Rule 15c2-12; b. Any federal tax compliance requirements including without limitation arbitrage and rebate compliance, related to any prior bond issues; c. The City's investment policies as they relate to the investment of bond proceeds; and d. Government Code section 8855(k) and the annual reporting requirements therein. 8.2 The City shall be vigilant in using bond proceeds in accordance with the stated purpose at the time that such debt was issued. The City Manager, Finance Director or designee will monitor the expenditure of bond proceeds to ensure they are used only for the purpose and authority for which the bonds were issued. Whenever reasonably possible, proceeds of debt will be held by a third-party trustee and the City will submit written requisitions for such proceeds. The City will submit a requisition L.3.b Packet Pg. 173 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 9 of 10 only after obtaining the signature of the City Manager and the Finance Director. 9. Amendment and Waivers of Debt Policy 9.1 This Debt Policy will be reviewed and updated periodically as needed. Any amendments to this Debt Policy are subject to specific City Council approval. While adherence to this Debt Policy is required in all applicable circumstances, on rare occasions there might be circumstances when strict adherence to a provision of this Debt Policy is not possible or not in the best interest of the City. If the City staff has determined that a waiver of one or more provisions of this Debt Policy should be considered by the City Council based on a strong and compelling reason, it will prepare an analysis for the City Council describing the rationale for the waiver and the impact of the waiver on the proposed debt issuance and on taxpayers, if applicable. Upon a super majority vote of the City Council, one or more provisions of this Debt Policy may be waived for a debt financing. The failure of a debt financing to comply with one or more provisions of this Debt Policy shall in no way affect the validity of any debt issued by the City in accordance with applicable laws. 10. SB 1029 Compliance 10.1 SB 1029, signed by Governor Brown on September 12, 2016, and enacted as Chapter 307, Statutes of 2016, requires issuers to adopt debt policies addressing each of the five items below: 10.1.1 The purposes for which the debt proceeds may be used. a. Section 3 (Acceptable Uses of Debt Proceeds) addresses the purposes for which debt proceeds may be used. 10.1.2 The types of debt that may be issued. a. Section 5 (Types of Debt) provides information regarding the types of debt that may be issued. 10.1.3 The relationship of the debt to, and integration with, the issuer's capital improvement program or budget, if applicable. L.3.b Packet Pg. 174 Debt Management Policy City Council Policy (2021-01) Effective Date: 04/06/2021 Page 10 of 10 a. Section 6 (Relationship to Capital Improvement Program and Operating Budget) provides information regarding the relationship between the City's debt and Capital Improvement Program and annual Operating Budget. 10.1.4 Policy goals related to the issuer's planning goals and objectives. a. Section 2 (Debt Policy Objective) and Section 7 (Policy Goals Related to Planning Goals and Objectives) address some of the City’s policy goals and how this Debt Policy has implemented them. 10.1.5 The internal control procedures that the issuer has implemented, or will implement, to ensure that the proceeds of the proposed debt issuance will be directed to the intended use. a. Section 8 (Internal Control Procedures) provides information regarding the City's internal control procedures designed to ensure that the proceeds of its debt issues are spent as intended. 10.2 This Debt Policy, as written, complies with and meets the requirements of SB 1029. L.3.b Packet Pg. 175 3/29/2021 https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&sectionNum=8855.&op_statues=2016&op_chapt… https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&sectionNum=8855.&op_statues=2016&op_chapter=307&op_s…1/3 TITLE 2. GOVERNMENT OF THE STATE OF CALIFORNIA [8000 - 22980] ( Title 2 enacted by Stats. 1943, Ch. 134. ) DIVISION 1. GENERAL [8000 - 8899.72] ( Division 1 enacted by Stats. 1943, Ch. 134. ) 8855. GOVERNMENT CODE - GOV CHAPTER 11.5. California Debt and Investment Advisory Commission [8855 - 8859] ( Heading of Chapter 11.5 amended by Stats. 2004, Ch. 7, Sec. 2. ) (a) There is created the California Debt and Investment Advisory Commission, consisting of nine members, selected as follows: (1) The Treasurer, or his or her designee. (2) The Governor or the Director of Finance. (3) The Controller, or his or her designee. (4) Two local government finance officers appointed by the Treasurer, one each from among persons employed by a county and by a city or a city and county of this state, experienced in the issuance and sale of municipal bonds and nominated by associations affiliated with these agencies. (5) Two Members of the Assembly appointed by the Speaker of the Assembly. (6) Two Members of the Senate appointed by the Senate Committee on Rules. (b) (1) The term of office of an appointed member is four years, but appointed members serve at the pleasure of the appointing power. In case of a vacancy for any cause, the appointing power shall make an appointment to become effective immediately for the unexpired term. (2) Any legislators appointed to the commission shall meet with and participate in the activities of the commission to the extent that the participation is not incompatible with their respective positions as Members of the Legislature. For purposes of this chapter, the Members of the Legislature shall constitute a joint interim legislative committee on the subject of this chapter. (c) The Treasurer shall serve as chairperson of the commission and shall preside at meetings of the commission. (d) Appointed members of the commission shall not receive a salary, but shall be entitled to a per diem allowance of fifty dollars ($50) for each day’s attendance at a meeting of the commission not to exceed three hundred dollars ($300) in any month, and reimbursement for expenses incurred in the performance of their duties under this chapter, including travel and other necessary expenses. (e) The commission may adopt bylaws for the regulation of its affairs and the conduct of its business. (f) The commission shall meet on the call of the chairperson, at the request of a majority of the members, or at the request of the Governor. A majority of all nonlegislative members of the commission constitutes a quorum for the transaction of business. (g) The office of the Treasurer shall furnish all administrative assistance required by the commission. (h) The commission shall do all of the following: (1) Assist all state financing authorities and commissions in carrying out their responsibilities as prescribed by law, including assistance with respect to federal legislation pending in Congress. (2) Upon request of any state or local government units, to assist them in the planning, preparation, marketing, and sale of debt issues to reduce cost and to assist in protecting the issuer’s credit. L.3.c Packet Pg. 176 3/29/2021 https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&sectionNum=8855.&op_statues=2016&op_chapt… https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&sectionNum=8855.&op_statues=2016&op_chapter=307&op_s…2/3 (3) Collect, maintain, and provide comprehensive information on all state and all local debt authorization and issuance, track and report on all state and local outstanding debt until fully repaid or redeemed, and serve as a statistical clearinghouse for all state and local debt. This information shall be available to the public. (4) Maintain contact with state and municipal bond issuers, underwriters, credit rating agencies, investors, and others to improve the market for state and local government debt issues. (5) Undertake or commission studies on methods to reduce the costs and improve credit ratings of state and local issues. (6) Recommend changes in state laws and local practices to improve the sale and servicing of state and local debts. (7) Establish a continuing education program for local officials having direct or supervisory responsibility over municipal investments and debt issuance. The commission shall undertake these and any other activities necessary to disclose investment and debt issuance practices and strategies that may be conducive for oversight purposes. (8) Collect, maintain, and provide information on local agency investments of public funds for local agency investment. (9) Publish a monthly newsletter describing and evaluating the operations of the commission during the preceding month. (i) (1) The issuer of any proposed debt issue of state or local government shall, no later than 30 days prior to the sale of any debt issue, submit a report of the proposed issuance to the commission by any method approved by the commission. This subdivision shall also apply to any nonprofit public benefit corporation incorporated for the purpose of acquiring student loans. The commission may require information to be submitted in the report of proposed debt issuance that it considers appropriate. Failure to submit the report shall not affect the validity of the sale. The report of proposed debt issuance shall include a certification by the issuer that it has adopted local debt policies concerning the use of debt and that the contemplated debt issuance is consistent with those local debt policies. A local debt policy shall include all of the following: (A) The purposes for which the debt proceeds may be used. (B) The types of debt that may be issued. (C) The relationship of the debt to, and integration with, the issuer’s capital improvement program or budget, if applicable. (D) Policy goals related to the issuer ’s planning goals and objectives. (E) The internal control procedures that the issuer has implemented, or will implement, to ensure that the proceeds of the proposed debt issuance will be directed to the intended use. (2) In the case of an issue of bonds the proceeds of which will be used by a governmental entity other than the issuer, the issuer may rely upon a certification by that other governmental entity that it has adopted the policies described in subparagraphs (C), (D), and (E) of paragraph (1), and references to the “issuer” in those subparagraphs shall be deemed to refer instead to the other governmental entity. (j) The issuer of any debt issue of state or local government, not later than 21 days after the sale of the debt, shall submit a report of final sale to the commission by any method approved by the commission. A copy of the final official statement for the issue shall accompany the report of final sale. If there is no official statement, the issuer shall provide each of the following documents, if they exist, along with the report of final sale: (1) Other disclosure document. (2) Indenture. (3) Installment sales agreement. (4) Loan agreement. (5) Promissory note. (6) Bond purchase contract. (7) Resolution authorizing the issue. (8) Bond specimen. L.3.c Packet Pg. 177 3/29/2021 https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&sectionNum=8855.&op_statues=2016&op_chapt… https://leginfo.legislature.ca.gov/faces/printCodeSectionWindow.xhtml?lawCode=GOV&sectionNum=8855.&op_statues=2016&op_chapter=307&op_s…3/3 The commission may require information to be submitted in the report of final sale that it considers appropriate. The issuer may redact confidential information contained in the documents if the redacted information is not information that is otherwise required to be reported to the commission. (k) (1) A public agency, whether state or local, shall submit an annual report for any issue of debt for which it has submitted a report of final sale pursuant to subdivision (j) on or after January 21, 2017. The annual report shall cover a reporting period from July 1 to June 30, inclusive, and shall be submitted no later than seven months after the end of the reporting period by any method approved by the commission. Before approving any annual method of reporting pursuant to this subdivision, the commission shall consult with appropriate state and local debt issuers and organizations representing debt issuers for purposes that shall include, but not be limited to, making a proposed reporting method more efficient and less burdensome for issuers. The annual report shall consist of the following information: (A) Debt authorized during the reporting period, which shall include the following: (i) Debt authorized at the beginning of the reporting period. (ii) Debt authorized and issued during the reporting period. (iii) Debt authorized but not issued at the end of the reporting period. (iv) Debt authority that has lapsed during the reporting period. (B) Debt outstanding during the reporting period, which shall include the following: (i) Principal balance at the beginning of the reporting period. (ii) Principal paid during the reporting period. (iii) Principal outstanding at the end of the reporting period. (C) The use of proceeds of issued debt during the reporting period, which shall include the following: (i) Debt proceeds available at the beginning of the reporting period. (ii) Proceeds spent during the reporting period and the purposes for which it was spent. (iii) Debt proceeds remaining at the end of the reporting period. (2) Compliance with this subdivision shall be required for each issue of debt with outstanding debt, debt that has been authorized but not issued, or both, during the reporting period. (3) The commission may, if technology permits, develop an alternate reporting method, provided that any alternate reporting method is in furtherance of the purpose of collecting the data required by this subdivision. Before approving any alternate annual method of reporting pursuant to this subdivision, the commission shall consult with appropriate state and local debt issuers and organizations representing debt issuers for purposes that shall include, but not be limited to, making a proposed reporting method more efficient and less burdensome for issuers. (Amended by Stats. 2016, Ch. 307, Sec. 2. (SB 1029) Effective January 1, 2017.) L.3.c Packet Pg. 178 Agenda #: 6.1 Meeting Date: April 6, 2021 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: FORMATION OF LANDSCAPE ASSESSMENT DISTRICT NO. 41-2021 TO REPLACE EXISTING DISTRICT NO. 41. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: A. Adopt Resolution No. 2021-12 initiating proceedings for the formation of a new landscape assessment district No. 41-2021 and designating SCI Consulting Group as the Engineer of Record; and B. Approve, and authorized the Mayor to sign, the First Amendment to the Consulting Services Agreement with SCI Consulting Group to provide the special assessment engineering and balloting services in the amount of $13,600. FINANCIAL IMPACT: In FY 2020/21, the revenue from assessments in District 41 were $122,157, which necessitated a General Fund subsidy of $142,824 to cover the existing District’s total budget of $264,981. Forming a new district with the intent to be self-supporting will relieve the General Fund of this burden. Costs to perform the mail ballot process and other required services under the SCI contract amendment will be $13,600. There is sufficient fund available in the FY 2020/21 Public Works operating budget to cover this cost. BACKGROUND: Landscape Assessment District 41 (District) was created in 1985 to pay for the maintenance and upkeep of certain landscape and recreation features in the neighborhood. The District was formed upon the request of developer William Lyon Company. At that time before the 1989 incorporation of the City of Diamond Bar (City), the County of Los Angeles (County) approved the formation of this District and provided 6.1 Packet Pg. 179 maintenance and administration. Upon incorporation in 1989, the City took over the administration of the District (maintenance as well as the annual assessment responsibilities). The District was created to be self-supporting with the ability of the County (and, subsequently, the City) to set assessment levels sufficient to raise the required revenues. In 1996 California voters approved Proposition 218, which changed the legal requirements of increasing assessments such as these. From that year forward any increase in assessments would need to be approved by a vote of the property owners within the District by a simple majority (50% plus 1) of returned ballots. This new requirement effectively froze assessment levels for most assessments across the State, including District 41. For a few years, costs increases were modest and fiscal reserves were sufficient to fund maintenance activities. Once the reserves were depleted, the City’s General Fund was utilized to cover the shortfalls. Because the District was originally structured to be self-supporting, this burden on the General Fund was unintended and is unsustainable. The simplest remedy is to in crease assessments for the District to cover costs. Other options include scaling back landscape services to fit within available revenues or dissolving the District and ceasing all services. After years of study and discussion, the City Council initiated a new assessment district formation in 2019 pursuant to Proposition 218 procedures to put increased assessments in place. The result of that ballot process was an overwhelming rejection of the City’s proposed assessments (with only 25.3% support). The C ity proceeded to continue with the same assessment levels for the two following years, FY 2019/20 and FY 2020/21. Due to the increase in the cost of District services over the years and the inability to increase assessments to cover those costs, the City Council at its February 16, 2021 meeting directed staff to take the necessary steps to dissolve the District. On March 16, 2021, the City Council adopted Resolution No. 2021 -09 declaring the City’s intention to dissolve Landscape Maintenance District No. 4 1 and scheduling a public hearing for the May 4, 2021 Council meeting. Public hearing letters/notices were mailed to the property owners and the public hearing notices have been published accordingly. ANALYSIS: Prior to and during the March 16, 2021 meeting, the Council heard substantial comments from the residents and representatives of the homeowner’s associations in the District that another Proposition 218 ballot proceeding might be received more favorably than before. Based on that input along with assurances from the homeowners’ associations that they would spearhead all community engagement, the City Council is being requested to initiate proceedings for a new Proposition 218 assessment district formation proceeding to re-establish this landscape assessment district (to be designated District No. 41-2021) in time to be assessed on the FY 2021/22 property tax bills. Therefore, the City Council directed staff to explore this option. In the meantime, the dissolution of the existing District No. 41 will proceed as planned. 6.1 Packet Pg. 180 Staff contacted the City’s Assessment Engineer, SCI Consulting Group (Consultant), to explore the scope, timing, and costs of this request. The Consultant states that the assessment engineering work from the 2019 effort is still valid in its basic structure but would need to be updated based on new cost projections and any new parcel information. Based on this and the absence of any community engagement effort, their cost proposal of $13,600 is less than it was for the 2019 effort. This cost includes all updated parcel data, financial analysis, printing and mailing of ballot materials, and tabulation. A contract amendment, as shown in Attachment 2, would be required to secure the Consultants services. The timeline for this effort is governed by the early August deadline for submitting direct charges to the County Auditor-Controller to place the assessments on the FY 2021/22 tax bills. The primary milestone dates are shown below. • April 6: Resolution of Intent and Authorize SCI to Proceed on Engineer’s Report (Attachment 1) • May 4: Draft Engineer’s Report available • May 18: Resolution to Approve Engineer’s Report and Set Public Hearing Date • May 21: Prop 218 Ballot Packets and Hearing Notices to be mailed • July 6: Conduct Public Hearing and Tabulate Ballots. LEGAL REVIEW: The City Attorney has reviewed and approved the Resolution and the First Amendment to the Consultant Agreement as to form. PREPARED BY: REVIEWED BY: 6.1 Packet Pg. 181 Attachments: 1. 6.1.a Resolution No. 2021-12; LLAD 41-2021 2. 6.1.b First Amendment to Consultant Agreement; SCI 6.1 Packet Pg. 182 RESOLUTION NO. 2021-12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR INITIATING PROCEEDINGS FOR THE FORMATION OF A LANDSCAPE MAINTENANCE DISTRICT (NO. 41-2021) PURSUANT TO PROVISIONS OF DIVISION 15, PART 2, OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA, AND DESIGNATING SCI CONSULTING GROUP AS THE ENGINEER OF RECORD WHEREAS, the City Council hereby proposes the formation of a landscaping and lighting district pursuant to the Landscaping and Lighting Act of 1972 (Part 2 of Division 15 of the California Streets and Highways Code (commencing with Section 22500 thereof) (“the Act”); and WHEREAS, the purpose of the landscaping and lighting district shall be to install, maintain and service those improvements described in Section 2 below. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Diamond Bar does hereby: Section 1. The new landscaping and lighting district proposed in this Resolution is hereby given the distinctive designation of Landscape Maintenance District No. 41- 2021 (the “Assessment District”), which proposed landscaping and lighting district is primarily described as all of the lands within the current boundaries of Landscape Maintenance District No 41, a shown in Exhibit “A”. Section 2. It is proposed the Assessment District undertake the following improvements: installation, maintenance and servicing of public and/or private areas and facilities, including but not limited to, landscaping, sprinkler systems, landscape corridors, ground cover, shrubs and trees, street frontages, lighting, fencing, entry monuments, graffiti removal and repainting, and labor, materials, supplies, utilities and equipment, as applicable, for property owned and/or maintaine d by the City. Installation means the construction of landscape improvements, including, but not limited to, land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks and drainage, and lights. Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of said improvements, including (a) repair, removal, or replacement of all or part of any improvement; (b) providing for the life, growth, health and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; (c) the removal of trimmings, rubbish, debris, and other solid waste; and (d) the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Servicing means the furnishing of (a) electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, and (b) water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. 6.1.a Packet Pg. 183 Resolution No. 2021-12 2 Section 3. SCI Consulting Group is hereby designated as Engineer of Work for purposes of these proceedings and is hereby ordered to prepare an Engineer's Report in accordance with Article 4 of Chapter 1 of the Act and Article XIIID of the California Constitution. Upon completion, the Engineer shall file the Engineer's Report with the City Clerk for submission to the City Council. PASSED, ADOPTED AND APPROVED this 6th day of April, 2021. _____ _____ Nancy A. Lyons, Mayor ATTEST: I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on the 6th day of April, 2021, by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: Kristina Santana, City Clerk 6.1.a Packet Pg. 184 Resolution No. 2021-12 3 Exhibit “A” Landscape Assessment District No. 41-2021 Map 6.1.a Packet Pg. 185 1450826.1 FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT This First Amendment to Consultant Services Agreement (“First Amendment”) is made and entered into as of April 6, 2021, by and between the City of Diamond Bar, a municipal corporation ( “City”), and SCI Consulting Group, a California corporation (herein referred to as the “Consultant”) with reference to the following: A. The City and the Consultant entered into that certain Consultant Services Agreement dated as of May 5, 2020, which is incorporated herein by this reference (the “Original Agreement”); and B. The City and the Consultant desire to amend the Original Agreement to modify, amend and supplement certain portions thereof. NOW, THEREFORE, the parties hereby agree as follows: 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement. 2. Revised Scope of Services. The Scope of Services, Exhibit "A" to the Original Agreement, is hereby amended, modified and supplemented to include the services described on Exhibit "A" attached hereto and incorporated herein by this reference. 3. Term. The Term of the Original Agreement as set forth in Section 2 therein is from July 1, 2020, to June 30, 2023. This First Amendment does not change the Term. 4. Compensation. The total not-to-exceed compensation set forth in Section 3 of the Original Agreement was the sum of Fifty-two thousand and two hundred and eight Dollars ($52,208). Section 3 of the Original Agreement is hereby amended to provide for an increase of Thirteen thousand and six hundred Dollars ($13,600) so that the total not-to-exceed compensation, as amended by this First Amendment shall not exceed Sixty-five thousand and eight hundred and eight Dollars ($65,808) without the prior authorization of the City. 5. Integration. This First Amendment and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein, and supersede all negotiations with respect hereto. This First Amendment amends, as set forth herein, th e Original Agreement and except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency 6.1.b Packet Pg. 186 1450826.1 between the terms and provisions of this First Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this First Amendment shall control. IN WITNESS hereof, the parties enter into this First Amendment on the year and day first above written. “CONSULTANT” “CITY” SCI CONSULTING GROUP CITY OF DIAMOND BAR *By: By: Printed Name: Nancy A. Lyons, Mayor Title: *By: ATTEST: Printed Name: Title: Kristina Santana, City Clerk APPROVED AS TO FORM: David DeBerry, City Attorney *NOTE: If Consultant is a corporation, the City requires the following signature(s): -- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR -- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City. 6.1.b Packet Pg. 187 1450826.1 EXHIBIT “A” ADDITIONAL SCOPE OF SERVICES [Behind this page.] 6.1.b Packet Pg. 188 1 March 26, 2021 VIA Email David Liu, Public Works Director City of Diamond Bar 21810 Copely Drive Diamond Bar, CA 91765 Re: SECOND REVISED Proposal for Assessment Engineering, Formation, Balloting Services and Other Professional Consulting Services Dear David: SCIConsultingGroup (“SCI”) is pleased to submit, for your review, this proposal to provide City of Diamond Bar (“City”) with special assessment engineering, balloting services and other professional consulting services. The City conducted a Proposition 218 ballot proceeding in 2019 to replace the existing Landscape Maintenance District 41 (“LMD 41”) that was unsuccessful. More recently, the City Council had decided to adopt a resolution of intent to dissolve LMD 41. However, there may be some interest by community members in revisiting the Proposition 218 balloting as support levels for a higher assessment may have increased. SCI has prepared this proposal with the understanding that we will update the 2019 documents (engineer’s report, resolutions, ballot guide and ballots) and conduct the full Proposition 218 process. The primary difference from our 2019 proposal is that SCI will not participate in the community outreach process. In addition, there will be certain efficiencies realized as the 2019 assessment engineering work is still valid and would only require an updated costs basis. SCOPE OF WORK The purpose of this proposal is to outline the responsibilities SCI Consulting Group would assume in assisting with a Proposition 218 assessment ballot proceeding and formation of a new Assessment District. This proposal includes all engineering services, mailing and design services, data analysis, voter tabulation, project coordination and other related tasks associated with such formations and ballot proceeding. 1. Project Analysis and Development: a. Meet with City Staff as needed to confirm the boundaries to be used, timeline and a description of the work to be performed. b. Review the City’s budgets and other cost of service information. 6.1.b Packet Pg. 189 2 2. Preparation of Assessments and Engineer's Report: a. Obtain data from the County Assessor for all parcels within the Assessment District boundaries. b. Obtain copies of Assessor Parcel Maps and prepare the Boundary Map and Assessment Diagrams. c. Research and determine other property information required for benefit apportionment such as assessable land area, number of residential dwelling units, proximity to improvements to be financed, etc. d. Analyze the potential tax base and estimate special benefit received by each assessable parcel in compliance with the provisions of Proposition 218. In addition, evaluate and quantify general benefits. e. Describe the improvements to be financed. f. Develop cost estimates for improvements and expenses to be paid by the proposed Assessment District formations. g. In conjunction with City staff, determine the recommended method of assessments. h. Using the project cost estimates and the assessment rules, allocate the estimated cost of improvements and expenses to all parcels within the Assessment District based on special benefit received. i. Prepare an Assessment Diagram for the proposed Assessment District formation. j. Prepare the Assessment Rolls listing parcel number, assessment number, owner name and assessment amount for each Assessor Parcel within the Assessment District. k. Prepare an Engineer's Report in compliance with the provisions of Article XIIID of the California Constitution which includes the boundaries of the Assessment District, description of improvements, improvement plans, facility locations, benefit analysis, all costs, analysis of general verses special benefit, assessments, assessment diagrams and other information and data. 3. Assessment Ballot Proceedings: a. Compile and format address data and specific assessment amount for all owners of record within Assessment Districts. This data would be used for mailing of Notices of Hearing and property owner ballots. b. In conjunction with City staff, prepare the Notices of Hearing and Assessment Ballots. c. Print and mail Notices and Assessment Ballots to all record owners within the Assessment District. Each notice/ballot shall include all information required by law. d. Assist with responding to property owner inquiries regarding their proposed assessment, voting procedures or other issues regarding the Assessment District formation. Any property owners or other parties who have questions about their assessment or other issues with the Assessment District can directly contact SCI Consulting Group on our toll-free 800 phone line: (800-273-5167) e. Tabulate all assessment ballots. f. Attend two City Council meetings ( 1. Approve Engineer’s Report, 2. Public Hearing ) and respond to all questions and make presentations as required. It is assumed that the second City Council meeting would require an in-person attendance as the ballot tabulation will occur immediately following the Public Hearing. 6.1.b Packet Pg. 190 3 4. Other Responsibilities: a. All services will be performed on a timely basis and in accord with a timeline developed in conjunction with City staff. b. Submission of levies to the County Auditor-Controller will be paid for under the existing City-SCI contract for annual levy administration. 5. City Responsibilities: a. City staff will provide cost projections for LMD 41. b. City staff will make presentations at any community meetings as needed. c. City will host any websites developed for the formation including any documents translated into languages other than English. TIMELINE Key Task Dates Responsible Party Project Kick-Off Meeting March 25 City / SCI Resolution 1 – Initiate Process; Award SCI Contract April 6 City / SCI Deliver Draft Engineers Report May 4 SCI Deliver Draft Resolutions and Staff Report May 11 SCI Resolution 2 – Approve ER, set hearing date, authorize ballots May 18 City / SCI Mail ballot packets May 21 SCI Respond to inquiries, ballot requests May 24 – July 6 City / SCI Resolution 3 – Conduct hearing, tabulate ballots, order levies (if approved) July 6 City / SCI 6.1.b Packet Pg. 191 4 FEE SCHEDULE The compensation for performance of services described under the Scope of Work shall be as follows: Task AD 41 * Engineer's Report & Resolutions * Public Inquiries 10,000$ Notice and Ballot * Design * Print * Mail * Tabulation 3,000$ Base Contract 13,000$ Incidentals (not to exceed) * One in-person meetings * Data & other misc expenses 600$ Total Contract Authorization 13,600$ SCI may bill for services on a monthly basis with the full amount due upon tabulation of ballots. Incidental costs incurred by SCI for the purchase of property data, maps, travel and other out-of-pocket expenses incurred in performing the scope of work for the measure shall be reimbursed at actual cost by City, with a total cost not to exceed $1,100 without prior authorization from City. This amount is based on up to two SCI staff travelling to the second City Council Meeting for ballot tabulation. Other meetings are assumed to be done in a virtual format (i.e., no travel expenses). If you have any questions or require additional information, please do not hesitate to contact me. I can be reached at (707) 430-4300 or via email at Jerry.bradshaw@sci-cg.com. We look forward to this opportunity to assist the City of Diamond Bar with this important project and stand ready to proceed. Sincerely, Jerry Bradshaw Senior Engineer 6.1.b Packet Pg. 192 Agenda #: 6.2 Meeting Date: April 6, 2021 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: REVIEW OF DRAFT 2021-2029 HOUSING ELEMENT (PLANNING CASE NO. PL2021-004) STRATEGIC GOAL: Open, Engaged & Responsive Government RECOMMENDATION: A. Receive staff report; B. Receive public comments; and C. Provide direction to staff regarding the Draft 2021 -2029 Housing Element. FINANCIAL IMPACT: The City entered into a Consulting Services Agreement with JHD Planning LLC to prepare the Housing Element for a not-to-exceed fee of $75,364. The consultant’s fees are fully reimbursable through SB-2 and a Local Early Action Planning (LEAP) grants that the State of California awarded to the City. In addition, $6,450 in administrative costs incurred by staff to manage the Housing Element are reimbursable through the LEAP grant. BACKGROUND: On January 26, 2021 the Planning Commission and City Council conducted a joint workshop to initiate the process of updating the Housing Element of the Diamond Bar General Plan for the 2021-2029 planning period as required by State law. As discussed at the January workshop, the 2019 General Plan Update did not include an update to the Housing Element because State law establishes a separate schedule for updating Housing Elements. The next required update for the Housing Element covers the 2021-2029 planning period. 6.2 Packet Pg. 193 Following the January workshop, a draft Housing Element was prepared and on March 23, 2021, a public meeting was conducted to allow the Planning Commission and interested stakeholders an opportunity to provide comments on the draft. Public comments from the March 23, 2021 meeting are summarized below. The purpose of tonight’s meeting is to continue the public review process for the draft Housing Element and solicit comments from the City Council and interested stakeholders. After this meeting, staff will incorporate appropriate revisions to the draft Housing Element. The draft Housing Element must then be submitted to the California Department of Housing and Community Development (HCD) for review. Additional public meetings will be scheduled by the Planning Commission and City Council prior to final adoption of the Housing Element. ANALYSIS: Background material regarding the Housing Element update is provided in the staff report for the January 26, 2021 workshop, and is available for review on the City website at: http://diamondbarca.iqm2.com/Citizens/Default.aspx. The following is a brief summary of the key Housing Element issues and how those issues are addressed in the draft Housing Element. Housing Element Content. The Housing Element focuses on establishing City policies and programs intended to address the housing needs of current and future Dia mond Bar residents. The Draft Housing Element includes the following sections: • An introductory overview of the Housing Element (Section 9.1) • Analysis of the City's demographic and housing characteristics and trends (Section 9.2) • Evaluation of resources and opportunities available to address housing needs (Section 9.3) • Analysis of potential governmental and non-governmental constraints to meeting the City's housing needs (Section 9.4) • The Housing Action Plan for the 2021-2029 planning period (Section 9.5) • Review of the City’s accomplishments during the previous planning period (Appendix A) • An inventory of sites that could accommodate the City’s new housing needs (Appendix B); and • A description of opportunities for stakeholders to participate in the preparation of the Housing Element (Appendix C) Generally, the most significant issues to be addressed in the Housing Element are: 1) whether City plans and regulations accommodate housing for persons with special needs in compliance with State law; and 2) how the City will accommodate its share of regional housing needs assigned through the Regional Housing Needs Assessment (“RHNA”) process. 6.2 Packet Pg. 194 Housing for Persons with Special Needs. State law establishes specific requirements related to City regulation of housing for persons with special needs, including the homeless and persons with disabilities. Section 9.4 of the Housing Element (Constraints) contains an analysis of City plans and regulations for a variety of housing types. The analysis concluded that while current City regulations are consistent with most laws regarding special needs housing, some recently adopted laws will require that the Municipal Code be amended in order to ensure consistency with State law. Section 9.5 (Housing Action Plan) of the Housing Element includes the following programs to comply with State requirements: • Program H-10. Accessory Dwelling Units. State law has been amended several times over the past few years to establish mandatory local standards and procedures intended to encourage production of ADUs. This program includes a commitment to process a Development Code amendment in conformance with current State law. • Program H-11. Emergency Shelters, Low Barrier Navigation Centers and Transitional/Supportive Housing. The Development Code establishes standards and procedures for these types of housing targeted for persons who are homeless or at risk of becoming homeless. This program includes a commitment to process a Development Code amendment in conformance with recent changes to Sta te law. These changes include allowing supportive housing meeting specified criteria in zones where multi-family and mixed uses are permitted, and allowing low barrier navigation centers meeting specified standards in areas zoned for mixed use and in non-residential zones permitting multi-family uses. Low barrier navigation centers are defined as “Housing first, low-barrier, service-enriched shelters focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.” • Program H-12. Affordable Housing Incentives/Density Bonus. Density bonus refers to the State law requiring cities to allow increased densi ty and other incentives for housing developments that include long -term commitments to provide units affordable to low- and moderate-income households. Recent changes to State Density Bonus Law have increased the amount of density bonus and other incentives for affordable housing. This program includes a commitment to amend the City’s density bonus regulations consistent with current State law. Regional Housing Needs Assessment. The Regional Housing Needs Assessment (“RHNA”) is the process established in State law by which future housing needs are determined for each city. On March 4, 2021 SCAG adopted the final RHNA Plan, which assigns Diamond Bar the following housing needs. 2021-2029 RHNA Allocation – Diamond Bar Extremely Low + Very Low Low Moderate Above Moderate Total 6.2 Packet Pg. 195 844 434 437 806 2,521 Source: SCAG, 3/4/2021 The RHNA allocation identifies the amount of additional housing a jurisdiction would need in order to have enough housing at all price levels to fully accommodate its assigned share of the region’s housing need during the 8 -year planning period. The RHNA is a planning requirement based upon housing need, not a construction quota or mandate. Jurisdictions are not required to build housing or issue permits to achieve their RHNA allocations, but some provisions of State law establish specific requirements when housing production falls short of RHNA allocations. One such requirement is streamlined review and approval of housing development applications that meet specific standards.1 Other than requirements for streamlined permit processing, there are currently no legal or financial penalties imposed on cities for failing to achieve their RHNA allocations so long as a Housing Element has been adopted in compliance with State law. The Housing Element is required to provide an evaluation of potential capacity for additional housing based on land use patterns, development regulations, other development constraints (such as infrastructure availability and environmental conditions) and real estate market trends. The analysis must be prepared at a parcel- specific level of detail and identify properties (or “sites”) where additional housing could be built consistent with City regulations. This evaluation is referred to as the “sites analysis” and State law requires the analysis to demonstrate that the city has adequate sites with appropriate zoning to fully accommodate additional housing development commensurate with its RHNA allocation in each income category. If the sites analysis does not demonstrate that adequate capacity exists to fully accommodate the RHNA, the Housing Element must describe what steps will be taken to increase capacity commensurate with the RHNA – typically through amendments to land use and zoning regulations that could facilitate additional housing development. Appendix B of the Housing Element includes a parcel-level analysis of sites that could accommodate the City’s RHNA allocation. Diamond Bar’s new General Plan, adopted in December 2019, estimates that up to 3,750 new housing units could be built in the city by 2040, depending on market conditions. It is expected that much of this growth will occur within the Town Center Mixed Use, Neighborhood Mixed Use, Transit Oriented Development and Community Core Overlay focus areas, while most existing residential neighborhoods will experience less growth and change. The 2019 General Plan provides the guiding framework for development in these Focus Areas; however, zoning regulations have not yet been amended to reflect General Plan policy for these areas. The City is currently in the process of updating the Development Code to revise land use regulations for these Focus Areas consistent with the standards established in the new General Plan. Program H-8 in Section 9.5 of the Housing Element describes actions the City intends to take to complete the required zoning amendments consistent with the 2019 General Plan and in compliance with State law. 1 California Government Code Sec. 65913.4 (SB 35 of 2017) 6.2 Packet Pg. 196 Planning Commission Review. On March 23rd the Planning Commission conducted a public meeting to review the draft Housing Element and receive public comments. Prior to the meeting a letter was submitted by Lee Paulson on behalf of Responsible Land Use (Attachment 3). Among the oral comments offered at the meeting were the following: • We have a housing crisis. • The housing market is strongly influenced by investors. • Children who grew up in Diamond Bar have difficulty finding affordable housing that enables them to continue living here. • Should the City consider an inclusionary housing program? • Diamond Bar doesn’t have sufficient transportation and parking infrastructure to handle the amount of development assigned in the RHNA, such as streets serving the Metrolink station. • Future planning and development of the Focus Areas needs to be done thou ghtfully so that these areas enhance the quality of life in Diamond Bar. At the conclusion of the meeting the consensus of the Planning Commission was that no substantial changes are needed in the draft Housing Element. Housing Element Update Process. Cities are required to submit draft Housing Elements to HCD for review, and must address any comments from HCD prior to final adoption of the Housing Element. After tonight’s meeting staff will incorporate City Council recommendations into the Draft Housing Element and the revised draft Housing Element must then be submitted to HCD for review. Following receipt of HCD’s comments, staff will prepare a proposed final Housing Element for review and approval by the Planning Commission and City Council later thi s year. Cities are allowed up to three years after Housing Element adoption to complete the zoning amendments needed to address RHNA requirements. PREPARED BY: 6.2 Packet Pg. 197 REVIEWED BY: Attachments: 1. 6.2.a Draft 2021-2029 Housing Element Update 2. 6.2.b Draft Minutes of the March 23, 2021 Planning Commission Meeting 3. 6.2.c Letter from Responsible Land Use Dated March 23, 2021 6.2 Packet Pg. 198 1 9.0 HOUSING ELEMENT 2021 -2029 9.0 6.2.a Packet Pg. 199 6.2.a Packet Pg. 200 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-iii 9.0 Contents 9.1 Introduction ...................................................................................................................... 9-1 Community Context .............................................................................................................. 9-1 Role of Housing Element ....................................................................................................... 9-1 Public Participation ................................................................................................................ 9-3 Relationship to Other General Plan Elements .................................................................... 9-3 9.2 Housing Needs Assessment ............................................................................................ 9-4 Population Characteristics .................................................................................................... 9-4 Household Characteristics .................................................................................................... 9-5 Employment .......................................................................................................................... 9-10 Housing Stock Characteristics ............................................................................................ 9-11 Special Needs....................................................................................................................... 9-14 Assisted Housing at Risk of Conversion .............................................................................. 9-20 Future Growth Needs........................................................................................................... 9-20 9.3 Resources and Opportunities ....................................................................................... 9-22 Land Resources .................................................................................................................... 9-22 Financial and Administrative Resources ........................................................................... 9-22 Energy Conservation Opportunities ................................................................................... 9-25 9.4 Constraints ...................................................................................................................... 9-27 Governmental Constraints .................................................................................................. 9-27 Development Processing Procedures ............................................................................... 9-37 Non-Governmental Constraints ......................................................................................... 9-42 Affirmatively Furthering Fair Housing .................................................................................. 9-44 9.5 Housing Action Plan ...................................................................................................... 9-47 Goals and Policies ................................................................................................................ 9-47 Housing Programs ................................................................................................................ 9-49 Appendix A – Evaluation of the Prior Housing Element Appendix B – Residential Sites Inventory Appendix C – Public Participation Summary 6.2.a Packet Pg. 201 9-iv HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 List of Tables Table 9-1 : Population Trends, 2000-2020, Diamond Bar vs. SCAG Region ............................... 9-4 Table 9-2 : Population by Age and Sex, Diamond Bar ................................................................ 9-5 Table 9-3 : Overcrowding by Tenure, Diamond Bar and SCAG Region ................................... 9-5 Table 9-4 : Extremely-Low-Income Households, Diamond Bar ................................................... 9-6 Table 9-5 : Income Categories and Affordable Housing Costs, Los Angeles County ............. 9-7 Table 9-6 : Percentage of Income Spent on Rent, Diamond Bar .............................................. 9-7 Table 9-7 : Percentage of Income Spent on Rent by Income Category, Diamond Bar ........ 9-8 Table 9-8 : Median Home Sales Price for Existing Homes, Diamond Bar and SCAG Region .. 9-8 Table 9-9 : Monthly Mortgage Cost, Diamond Bar and SCAG Region ..................................... 9-9 Table 9-10 : Monthly Mortgage Cost by Income Category, Diamond Bar .............................. 9-9 Table 9-11 : Overpayment by Income Category, Diamond Bar ............................................. 9-10 Table 9-12 : Employment by Industry, Diamond Bar .................................................................. 9-10 Table 9-13 : Employment by Occupation – Diamond Bar vs. SCAG Region ......................... 9-11 Table 9-14 : Housing by Type, Diamond Bar and SCAG Region .............................................. 9-12 Table 9-15 : Housing by Tenure, Diamond Bar and SCAG Region........................................... 9-12 Table 9-16 : Housing Tenure by Age of Householder, Diamond Bar ........................................ 9-12 Table 9-17 : Vacant Units by Type, Diamond Bar and SCAG Region ...................................... 9-13 Table 9-18 : Age of Housing Stock, Diamond Bar and SCAG Region ..................................... 9-13 Table 9-19 : Disabilities by Type, Diamond Bar ........................................................................... 9-14 Table 9-20 : Disabilities by Type for Seniors 65+, Diamond Bar and SCAG Region ................ 9-15 Table 9-21 : Developmental Disabilities by Residence and Age, Diamond Bar .................... 9-16 Table 9-22 : Elderly Households by Income and Tenure, Diamond Bar................................... 9-17 Table 9-23 : Household Size by Tenure, Diamond Bar ............................................................... 9-18 Table 9-24 : Household Type by Tenure, Diamond Bar.............................................................. 9-18 Table 9-25 : Poverty Status for Female-Headed Households, Diamond Bar ........................... 9-19 Table 9-26 : Employment in the Agricultural Industry, Diamond Bar........................................ 9-19 Table 9-27 : 2021-2029 Regional Housing Growth Needs, Diamond Bar ................................. 9-21 Table 9-28 : Land Use Categories, Diamond Bar 2040 General Plan ...................................... 9-28 Table 9-29 : Residential Development Standards ...................................................................... 9-30 Table 9-30 : Permitted Residential Development by Zoning District ........................................ 9-31 Table 9-31 : Residential Parking Requirements ........................................................................... 9-35 Table 9-32 : Review Authority for Residential Development ..................................................... 9-37 Table 9-33 : Planning and Development Fees ........................................................................... 9-41 Table 9-34 : Road Improvement Standards ................................................................................ 9-42 Table 9-35 : Quantified Objectives 2021-2029, Diamond Bar ................................................... 9-58 List of Figures Figure 9-1 Regional Location, Diamond Bar ............................................................................. 9-2 Figure 9-2 Seismic Hazard Zones ............................................................................................... 9-45 Figure 9-3 Fire Hazard Zones ...................................................................................................... 9-46 6.2.a Packet Pg. 202 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-1 9.0 9.1 INTRODUCTION COMMUNITY CONTEXT Diamond Bar is a scenic community located in the San Gabriel Valley on the eastern edge of Los Angeles County, within minutes of Orange, Riverside, and San Bernardino counties. With its origin as a center for ranching perched among a landscape of rolling hills in the East San Gabriel Valley, suburban-style growth later established Diamond Bar as a residential community known for its friendly country-living atmosphere, abundant open spaces, exceptional public facilities, well-maintained parks and hiking trails, and excellent schools. With convenient access to State Route 57 (SR-57) and SR-60, Diamond Bar is within 30 miles driving distance of the cities of Los Angeles, Riverside, and Irvine, making it a desirable part of the region to live and work. Diamond Bar is bounded by the cities of Industry and Pomona to the north and Chino Hills to the east, and unincorporated Los Angeles County to the south and west. The western edge of the city lies at the intersection of SR-57 and SR-60, with SR-57 connecting the city to Interstate 10 (I-10) 1½ miles to the north and SR-60 connecting to SR-71 roughly 2 miles to the east. The Industry Metrolink Station lies on Diamond Bar’s northern border with the City of Industry, providing east- west transit connections to Los Angeles and Riverside. The regional setting is depicted in Figure 9-1. Most of the easily buildable land in the City has already been developed, and much of the remaining land has a variety of geotechnical and topo- graphic conditions that may constrain future development. As a result, a significant portion of future residential growth in Diamond Bar is expected to occur through redevelopment of commercial or light industrial properties, particularly those designated for mixed- use development in the 2019 comprehensive General Plan update. R OLE OF HOUSING ELEMENT Diamond Bar is faced with various important housing issues that include a balance between employment and housing opportunities, a match between the supply of and demand for housing, preserving and enhancing affordability for all segments of the population, preserving the quality of the housing stock, and providing new types of housing necessary to accommodate growth and the changing population. This Housing Element provides policies and programs to address these issues. Diamond Bar's Housing Element is an 8-year plan for the period 2021-2029, unlike other General Plan elements which typically cover a 10- to 20-year planning horizon. 6.2.a Packet Pg. 203 9-2 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Figure 9-1 Regional Location, Diamond Bar 6.2.a Packet Pg. 204 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-3 9.0 The Diamond Bar Housing Element consists of the following major components: • This Introduction to the Housing Element • An analysis of the City's demographic and housing characteristics and trends (Section 9.2) • An evaluation of resources and opportunities available to address housing issues (Section 9.3) • A review of potential market, governmental, and environmental constraints to meeting the City’s identified housing needs (Section 9.4) • The Housing Action Plan for the 2021-2029 planning period (Section 9.5) • A review of the City’s accomplish- ments during the previous planning period (Appendix A) • A detailed inventory of the suitable sites for housing development (Appendix B); and • A description of opportunities for stakeholders to participate in the preparation of the Housing Element (Appendix C) PUBLIC PARTICIPATION Residents, businesses and interest groups were provided the opportunity to participate in the Housing Element update process and were an important component of the overall program. Details regarding opportunities for public involvement during the preparation and adoption of this Housing Element are provided in Appendix C. RELATIONSHIP T O OTHER GENERAL PLAN ELEMENTS In addition to the Housing Element, the City of Diamond Bar General Plan consists of the following Chapters: • Land Use & Economic Development • Community Character & Placemaking • Circulation • Resource Conservation • Public Facilities & Services • Public Safety • Community Health & Sustainability This Housing Element builds upon and is consistent with the other General Plan chapters. For example, residential land use designations established in the Land Use Element and potential constraints described in the Resource Conservation and Public Facilities and Services elements are reflected in the Housing Element sites inventory (Appendix B). As the General Plan is amended from time to time, the Housing Element will be reviewed for consistency, and amended as necessary to maintain an internally consistent General Plan. 6.2.a Packet Pg. 205 9-4 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 9.2 HOUSING NEEDS ASSESSMENT This section examines Diamond Bar’s general population and household characteristics and trends, such as age, employment, household composition and size, household income, and special needs. Characteristics of the existing housing stock (e.g., number of units and type, tenure, age and condition, costs) are also addressed. Finally, the City’s projected housing needs based on the 2021-2029 Regional Housing Needs Assessment (RHNA) are examined. The data presented in this section has been compiled by the Southern California Association of Governments (SCAG) based upon recent data from the U.S. Census, California Department of Finance (DOF), California Employment Development Department (EDD) and other relevant sources and has been pre-approved by the California Department of Housing and Community Development (HCD). POPULATION CHARACTERISTICS Population Growth Trends Diamond Bar was incorporated in 1989 with much of its territory already developed. From 2000 to 2020 the City’s population increased from 56,287 to an estimated population of 57,177 (see Table 9-1), an annual growth rate of 0.1% compared to 0.7% for the SCAG region as a whole. Table 9-1: Population Trends, 2000-2020, Diamond Bar vs. SCAG Region Age Housing needs are influenced by the age characteristics of the population. Different age groups require different accommodations based on lifestyle, family type, income level, and housing preference. Table 9-2 provides a comparison of the City’s population by age group. The population of Diamond Bar is 49.1% male and 50.9% female. The share of the population of Diamond Bar below 18 years of age is 20.3%, which is lower than the regional share of 23.4%. Diamond Bar's seniors (65 and above) make up 15.6% of the population, which is higher than the regional share of 13%. 6.2.a Packet Pg. 206 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-5 9.0 Table 9-2: Population by Age and Sex, Diamond Bar HOUSEHOLD CHARACTERISTICS Overcrowding Overcrowding is often closely related to household income and the cost of housing. The U.S. Census Bureau considers a household to be over- crowded when there is more than one person per room, excluding bathrooms and kitchens, and severely overcrowded when there are more than 1.5 occupants per room. Table 9-3 summarizes the incidence of over- crowding for Diamond Bar as compared to the SCAG region as a whole. Table 9-3: Overcrowding by Tenure, Diamond Bar and SCAG Region According to recent Census data overcrowding was more prevalent among renters than for owner- occupied units. Approximately 10.9% of the City’s renter-occupied households were overcrowded compared to 2.4% of owner-occupied households. The incidence of over- crowding in Diamond Bar was substantially lower than is typical for the SCAG region as a whole. 6.2.a Packet Pg. 207 9-6 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Household Income Household income is a primary factor affecting housing needs in a community, particularly for extremely- low-income households, defined as 30% of median income or less. According to recent Census data, approximately 7.9% of households in Diamond Bar were within the extremely-low-income (ELI) category, and renters were much more likely than owners to fall within the ELI category (Table 9-4). Table 9-4: Extremely-Low-Income Households, Diamond Bar Housing Affordability and Overpayment Housing Affordability Criteria State law establishes five income categories for purposes of housing programs based on the area (i.e., county) median income (AMI): extremely-low (30% or less of AMI), very- low (31-50% of AMI), low (51-80% of AMI), moderate (81-120% of AMI) and above moderate (over 120% of AMI). Housing affordability is based on the relationship between household income and housing expenses. According to the U.S. Department of Housing and Urban Development (HUD) and the California Department of Housing and Community Development (HCD), housing is considered “affordable” if monthly housing cost is no more than 30% of a household’s gross income. In some areas such as Los Angeles County, these income limits may be increased to adjust for high housing costs. Table 9-5 shows affordable rent levels and estimated affordable purchase prices for housing in Diamond Bar (and Los Angeles County) by income category. Based on State-adopted standards for a 4-person family, the maximum affordable monthly rent for extremely-low-income households is $845, while the maximum affordable rent for very-low-income households is $1,407. The maximum affordable rent for low-income households is $2,252, while the maximum for moderate- income households is $2,319. Maximum purchase prices are more difficult to determine due to variations in mortgage interest rates and qualifying procedures, down payments, special tax assessments, homeowner 6.2.a Packet Pg. 208 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-7 9.0 association fees, property insurance rates, etc. With this caveat, the maximum affordable home purchase price for moderate-income households has been estimated based on typical conditions. Affordable prices have not been estimated for the lower-income categories because most for-sale affordable housing is provided at the moderate-income level. Table 9-5: Income Categories and Affordable Housing Costs, Los Angeles County 2020 County Median Income = $77,300 Income Limits* Affordable Rent Affordable Price (est.) Extremely Low (<30%) $33,800 $845 * Very Low (31-50%) $56,300 $1,407 * Low (51-80%) $90,100 $2,252 * Moderate (81-120%) $92,750 $2,319 $375,000 Above moderate (120%+) Over $92,750 Over $2,319 Over $375,000 Assumptions: -Based on a family of 4 and 2020 State income limits -30% of gross income for rent or principal, interest, taxes & insurance plus utility allowance -10% down payment, 3.75% interest, 1.25% taxes & insurance, $300 HOA dues * Because of State adjustments in high housing cost areas, some of these income limits are higher than the percentages of median income Source: Cal. HCD; JHD Planning LLC Rental Ho using Across Diamond Bar's 4,263 renter households, 2,131 (50%) spend 30% or more of gross income on housing cost, compared to 55.3% in the SCAG region.1 Additionally, 1,360 renter households in Diamond Bar (31.9%) spend 50% or more of gross income on housing cost, compared to 28.9% in the SCAG region (Table 9-6). Table 9-6: Percentage of Income Spent on Rent, Diamond Bar Recent Census data also allows for the analysis of Diamond Bar's 3,893 renter households (for which income data are available) by spending on rent by income bracket. As one might expect, the general trend is that low-income 1 The SCAG region includes Los Angeles, Orange, Riverside, San Bernardino, Imperial and Ventura counties. households spend a higher share of income on housing (often more than 50%) while high-income households are more likely to spend under 20% of income on housing (Table 9-7). 6.2.a Packet Pg. 209 9-8 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Table 9-7: Percentage of Income Spent on Rent by Income Category, Diamond Bar For -Sale Housing Median sales price trends for existing homes during 2000-2018 are shown in Table 9-8. Between 2000 and 2018, median home sales prices in Diamond Bar increased 186% while prices in the SCAG region increased 151%. 2018 median home sales prices in Diamond Bar were $660,000. Prices in Diamond Bar have ranged from a low of 98.5% of the SCAG region median in 2005 and a high of 150.2% in 2009. Table 9-8: Median Home Sales Price for Existing Homes, Diamond Bar and SCAG Region 6.2.a Packet Pg. 210 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-9 9.0 Table 9-9 compares typical monthly mortgage costs in Diamond Bar to the SCAG region as a whole while Table 9-10 confirms that the percentage of income spent on mortgage payments is higher for households at the lower income levels. Table 9-9: Monthly Mortgage Cost, Diamond Bar and SCAG Region Table 9-10: Monthly Mortgage Cost by Income Category, Diamond Bar According to State housing policy, overpaying occurs when housing costs exceed 30% of gross household income. Table 9-11 displays recent estimates for overpayment by income category for Diamond Bar residents and shows that overpayment is much more frequent for households at the extremely-low and very-low income levels than those households in higher income categories. 6.2.a Packet Pg. 211 9-10 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Table 9-11: Overpayment by Income Category, Diamond Bar EMPLOYMENT Employment is an important factor affecting housing needs within a community. The jobs available in each employment sector and the wages for these jobs affect the type and size of housing residents can afford. According to recent Census data, Diamond Bar had 27,198 workers living within its borders who work across 13 major industrial sectors (Table 9-12). The most prevalent industry is Education & Social Services with 6,726 employees (24.7% of total) and the second most prevalent industry is Professional Services with 3,894 employees (14.3% of total). Table 9-12: Employment by Industry, Diamond Bar 6.2.a Packet Pg. 212 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-11 9.0 In addition to understanding the industries in which the residents of Diamond Bar work, it is also possible to analyze the types of jobs they hold. The most prevalent occupational category in Diamond Bar is Management, in which 14,448 (53.1% of total) employees work. The second-most prevalent type of work is in Sales, which employs 7,228 (26.6% of total) in Diamond Bar (Table 9-13). Table 9-13: Employment by Occupation – Diamond Bar vs. SCAG Region HOUSING STOCK CHARACTERISTICS This section presents an evaluation of the characteristics of the community’s housing stock and helps in identifying and prioritizing needs. The factors evaluated include the number and type of housing units, tenure, vacancy, housing age and condition. A housing unit is defined as a house, apartment, mobile home, or group of rooms, occupied as separate living quarters, or if vacant, intended for occupancy as separate living quarters. Housing Type and Tenure Diamond Bar's housing stock contained a total of approximately 17,645 total units in 2020, of which about 72% were single-family detached homes (Table 9- 14). As seen in Table 9-15, over three- quarters of homes in Diamond Bar were owner-occupied as compared to only about 52% in the SCAG region). 6.2.a Packet Pg. 213 9-12 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Table 9-14: Housing by Type, Diamond Bar and SCAG Region Table 9-15: Housing by Tenure, Diamond Bar and SCAG Region In many places, housing tenure varies substantially based on the age of the householder. In Diamond Bar, the age group where renters outnumber owners the most is 15-24. The age group where owners outnumber renters the most is 65-74 (Table 9-16). Table 9-16: Housing Tenure by Age of Householder, Diamond Bar 6.2.a Packet Pg. 214 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-13 9.0 Table 9-17 shows recent data for vacant units in Diamond Bar and the SCAG region. The largest categories of vacant units in Diamond Bar were units for rent and units held for seasonal use. Table 9-17: Vacant Units by Type, Diamond Bar and SCAG Region Housing Age and Conditions Housing age is often an important indicator of housing condition. Housing units built prior to 1978 before stringent limits on the amount of lead in paint were imposed may have interior or exterior building components coated with lead-based paint. Housing units built before 1970 are the most likely to need rehabilitation and to have lead- based paint in a deteriorated condition. Lead-based paint becomes hazardous to children under age six and to pregnant women when it peels off walls or is pulverized by windows and doors opening and closing. Table 9-18 shows the age distribution of the housing stock in Diamond Bar compared to the SCAG region as a whole. This table shows that about half of housing units in Diamond Bar were constructed before 1980. These findings suggest that there may be a need for maintenance and rehabilitation, including remediation of lead-based paint, for a substantial number of housing units. Table 9-18: Age of Housing Stock, Diamond Bar and SCAG Region 6.2.a Packet Pg. 215 9-14 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 The majority of Diamond Bar's housing stock is in good to excellent condition. However, some housing units in older neighborhoods exhibit signs of deferred maintenance such as peeling paint, worn roofs, and cracked asphalt driveways. The Housing Action Plan (Section 9.5) establishes a program directed at improving housing stock in these areas through targeted rehabilitation assistance. Fewer than 100 units are estimated to need rehabilitation citywide, and no units require replacement. SPECIAL NEEDS Certain groups have greater difficulty in finding decent, affordable housing due to special circumstances. Such circumstances may be related to one’s employment and income, family characteristics, disability, or other conditions. As a result, some Diamond Bar residents may experience a higher prevalence of overpayment, over- crowding, or other housing problems. State Housing Element law defines “special needs” groups to include persons with disabilities, the elderly, large households, female-headed households with children, homeless people, and farm workers. This section contains a discussion of the housing needs facing each of these groups. Persons with Disabilities According to recent Census estimates, the most prevalent types of disabilities for Diamond Bar residents were ambulatory, independent living and cognitive disabilities (see Table 9-19). Housing opportunities for those with disabilities can be maximized through housing assistance programs and providing universal design features such as widened doorways, ramps, lowered countertops, single-level units and ground floor units. Table 9-19: Disabilities by Type, Diamond Bar 6.2.a Packet Pg. 216 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-15 9.0 In Diamond Bar, the most commonly occurring disability among seniors 65 and older was an ambulatory disability, experienced by 17.4% of Diamond Bar's seniors and 22.9% of seniors in the SCAG region (Table 9-20). Table 9-20: Disabilities by Type for Seniors 65+, Diamond Bar and SCAG Region Developmental Disab ilities As defined by federal law, “developmental disability” means a severe, chronic disability of an individual that: • Is attributable to a mental or physical impairment or combination of mental and physical impairments; • Is manifested before the individual attains age 22; • Is likely to continue indefinitely; • Results in substantial functional limitations in three or more of the following areas of major life activity: a) self-care; b) receptive and expressive language; c) learning; d) mobility; e) self- direction; f) capacity for independent living; or g) economic self-sufficiency; and • Reflects the individual’s need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. The Census does not record develop- mental disabilities as a separate category of disability. According to the U.S. Administration on Developmental Disabilities, an accepted estimate of the percentage of the population that can be defined as developmentally disabled is 1.5 percent. Many develop- mentally disabled persons can live and work independently within a conven- tional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person’s living situation as a child to an appropriate level of independence as an adult. 6.2.a Packet Pg. 217 9-16 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Table 9-21: Developmental Disabilities by Residence and Age, Diamond Bar The California Department of Developmental Services (DDS) currently provides community-based services to persons with developmental disabilities and their families through a statewide system of 21 regional centers, four developmental centers, and two community-based facilities. The San Gabriel/Pomona Regional Center (SG/PRC) located in Pomona (http://www.sgprc.org/) provides services to approximately 925 people with developmental disabilities in Diamond Bar (Table 9-21). The SG/PRC is a private, non-profit community agency that contracts with local businesses to offer a wide range of services to individuals with develop- mental disabilities and their families. There is no charge for diagnosis and assessment for eligibility. Once eligibility is determined, most services are free regardless of age or income. There is a requirement for parents to share the cost of 24-hour out-of-home placements for children under age 18. This share depends on the parents’ ability to pay. There may also be a co- payment requirement for other selected services. Regional centers are required by law to provide services in the most cost- effective way possible. They must use all other resources, including generic resources, before using any regional center funds. A generic resource is a service provided by an agency that has a legal responsibility to provide services to the general public and receives public funds for providing those services. Some generic agencies may include the local school district, county social services department, Medi-Cal, Social Security Administra- tion, Department of Rehabilitation and others. Other resources may include natural supports. This is help that disabled persons may get from family, friends or others at little or no cost. 6.2.a Packet Pg. 218 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-17 9.0 Elderly Federal housing data define a household type as “elderly family” if it consists of two persons with either or both age 62 or over. Of Diamond Bar's 3,985 such households, 13.8% earn less than 30% of the surrounding area income (compared to 24.2% in the SCAG region) and 34% earn less than 50% of the surrounding area income (compared to 30.9% in the SCAG region) (Table 9-22). Many elderly persons are dependent on fixed incomes or have disabilities. Elderly homeowners may be physically unable to maintain their homes or cope with living alone. The housing needs of this group can be addressed through smaller units, accessory dwelling units on lots with existing homes, shared living arrangements, congregate housing and housing assistance programs. Table 9-22: Elderly Households by Income and Tenure, Diamond Bar The elderly tend to have higher rates of disabilities than younger persons; therefore, many of the programs noted in the previous section also apply to seniors since their housing needs include both affordability and accessibility. Large Households Household size is an indicator of need for large units. Large households are defined as those with five or more members. Table 9-23 illustrates the range of household sizes in Diamond Bar for owners, renters, and overall. The most commonly occurring household size is of two persons (29.2%) and the second-most commonly occurring household is of three persons (23.1%). Diamond Bar has a lower share of single-person households than the SCAG region overall (14.1% vs. 23.4%) and a lower share of 7+ person households than the SCAG region overall (1.8% vs. 3.1%). This distribution indicates that the need for large units with four or more bedrooms is expected to be significantly less than for smaller units. However, large families needing units with more bedrooms, generally face higher housing costs, and as a result may benefit from several types of assistance. 6.2.a Packet Pg. 219 9-18 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Table 9-23: Household Size by Tenure, Diamond Bar Female-Headed Households Of Diamond Bar's 17,645 total households, 13.1% were female- headed (compared to 14.3% in the SCAG region), 4% are female-headed and with children (compared to 6.6% in the SCAG region), and 0.3% are female-headed and with children under 6 (compared to 1.0% in the SCAG region) (Table 9-24). Approxi- mately 3.9 percent of Diamond Bar's households were experiencing poverty, compared to 7.9 percent of households in the SCAG region (Table 9-25). Poverty thresholds, as defined by the ACS, vary by household type. In 2018, a single individual under 65 was considered in poverty with an income below $13,064/year while the threshold for a family consisting of 2 adults and 2 children was $25,465/year. Table 9-24: Household Type by Tenure, Diamond Bar 6.2.a Packet Pg. 220 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-19 9.0 Table 9-25: Poverty Status for Female-Headed Households, Diamond Bar Farm W orkers Farm workers are traditionally defined as persons whose primary income is from seasonal agricultural work. Diamond Bar was at one time one of the largest working cattle ranches in the western United States. However, urban development and shifts in the local economy have significantly curtailed agricultural production within Los Angeles County. Today, Diamond Bar is a mostly developed city, with a strong local economy that is no longer tied to an agricultural base. According to recent Census estimates, about 45 Diamond Bar residents were employed in agricultural, forestry, fishing and hunting, and only 12 of those were employed full-time in these industries (Table 9-26). The nearest agricultural area to Diamond Bar is in San Bernardino County to the east. Since there are no major agricultural operations within Diamond Bar and housing costs are significantly lower in the Inland Empire, there is little need for farm worker housing in the City. Table 9-26: Employment in the Agricultural Industry, Diamond Bar Homeless Persons Homelessness is a continuing problem throughout California and urban areas nationwide. A homeless count conducted by the Los Angeles Homeless Services Authority (LAHSA) in 2020 indicated that on any given day there are an estimated 63,706 homeless persons Los Angeles County. These include families that might be displaced through evictions, women and children displaced through abusive family life, persons with 6.2.a Packet Pg. 221 9-20 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 substance abuse problems, veterans, or persons with serious mental illness. Diamond Bar is located within the San Gabriel Valley Service Planning Area (SPA), which had a 2020 homeless estimate of 4,555 people, of which four unsheltered persons were reported in Diamond Bar.2 The City has adopted a Homelessness Response Plan that seeks to both address the needs of those who are currently unsheltered and to implement strategies that can prevent an increase in incidents of homelessness within the City. In addition, the City is a member of the San Gabriel Valley Regional Housing Trust, a joint powers authority created to finance the planning and construction of homeless housing, and extremely-low-, very-low- and low- income housing projects. ASSISTED HOUSING AT RISK OF CONVERSION Assisted housing at risk of conversion are those housing projects that are at risk of losing their low-income affordability restrictions within the 10- year period from 2021 to 2031. According to the California Housing Partnership there are no assisted housing units in the City of Diamond Bar at risk of conversion. FUTURE GROWTH NEEDS Overview of the Regional Housing Needs Assessment The Regional Housing Needs Assessment (RHNA) is a key requirement for local governments to plan for anticipated growth. The RHNA quantifies the anticipated need for housing within each jurisdiction for the 6th Housing Element cycle extending from July 2021 to October 2029. Communities then determine how they will address this need through the process of updating the Housing Elements of their General Plans. The RHNA for the 6th cycle was adopted by the Southern California Association of Governments (SCAG) in March 2021. The need for housing is determined by the forecasted growth in households as well as existing need due to overcrowding and 2 https://www.lahsa.org/data?id=42-2020-homeless-count-by-service-planning-area overpayment. Each new household created by a child moving out of a parent’s home or by a family moving to a community creates the need for a housing unit. The housing need for new households is then adjusted to maintain a desirable level of vacancy to promote housing choice and mobility. An adjustment is also made to account for units lost due to demolition, natural disaster, or conversion to non-housing uses. Total housing need is then distributed among four income categories on the basis of the county’s income distribution, with adjustments to avoid an over-concentration of lower- income households in any community. More information about the RHNA process may be found on SCAG’s website at https://scag.ca.gov/rhna. 6.2.a Packet Pg. 222 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-21 9.0 2021-2029 Diamond Bar Growth Needs The total housing growth need for the City of Diamond Bar during the 2021- 2029 planning period is 2,521 units. This total is distributed by income category as shown in Table 9-27. Table 9-27: 2021-2029 Regional Housing Growth Needs, Diamond Bar Very Low Low Moderate Above Moderate Total 844* 434 437 806 2,521 *Per state law, half of the very-low units are assumed to be in the extremely low category Source: SCAG 3/4/2021 It should be noted that SCAG did not identify growth needs for the extremely- low-income category in the RHNA. As provided in Assembly Bill (AB) 2634 of 2006, jurisdictions may determine their extremely-low-income need as one- half the need in the very-low category. The City’s inventory of land to accommodate the RHNA allocation is discussed in Section 9.3, Resources and Opportunities. 6.2.a Packet Pg. 223 9-22 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 9.3 RESOURCES AND OPPORTUNITIES A variety of resources are available for the development, rehabilitation, and preservation of housing in the City of Diamond Bar. This section provides a description of the land resources and adequate sites to address the City’s regional housing need allocation, and discusses the financial and administra- tive resources available to support the provision of affordable housing. Additionally, opportunities for energy conservation that can lower utility costs and increase housing affordability are addressed. LAND RESOURCES Section 65583(a)(3) of the California Government Code requires Housing Elements to include an “inventory of land suitable for residential develop- ment, including vacant sites and sites having potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites.” A detailed analysis of vacant land and potential redevelop- ment opportunities is provided in Appendix B, Table B-1, which shows that the City’s land inventory, including projects approved and the potential development of vacant and underutilized parcels, is sufficient to accommodate the RHNA for this planning period in all income categories. A discussion of public facilities and infrastructure needed to serve future development is contained in “Non- Governmental Constraints” in Section 9.4. There are currently no known service limitations that would preclude the level of development described in the RHNA, although developers will be required to pay fees or construct public improvements prior to or concurrent with development. FINANCIAL AND ADMINISTRATIVE RESOURCES State and Federal Resources Community Development Block Grant Program (CDBG) - Federal funding for housing programs is available through the Department of Housing and Urban Development (HUD). Diamond Bar participates in the Community Development Block Grant (CDBG) program and receives its allocation of CDBG funds through the Los Angeles County Development Authority (LACDA). The CDBG program is very flexible in that the funds can be used for a wide range of activities. The eligible activities include, but are not limited to, acquisition and/or disposition of real estate property, public facilities and improvements, relocation, rehabilitation and construction of housing, homeownership assistance, and clearance activities. In 2002 the City Council approved the establishment of a Home Improvement Program (HIP) to provide housing rehabilitation assistance to qualified low- and moderate-income households. CDBG funds are allocated to the HIP on an annual basis. HIP funds are used for exterior property 6.2.a Packet Pg. 224 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-23 9.0 improvements and for repairs to alleviate health and safety issues and to correct code violations. In addition, HIP funds may be used to improve home access to disabled persons and for the removal of lead-based paint hazards. The City’s CDBG allocation for the 2020- 21 Program Year was $243,522, which included an allocation for the HIP of $100,000. Under CDBG regulations, the HIP is eligible to receive unexpended CDBG funds from the previous fiscal year that are reallocated by the LACDA. Each household that qualifies for the HIP program is eligible to receive up to $20,000 as a no-interest, deferred loan. The City actively promotes the program and consistently exhausts its funding allocation each year. The City anticipates receiving approximately $232,000 in CDBG funds from LACDA during 2021-22. Section 8 Rental Assistance – The City of Diamond Bar cooperates with the LACDA, which administers the Section 8 Voucher Program. The Section 8 program provides rental assistance to low-income persons in need of affordable housing. There are two types of subsidies under Section 8: certificates and vouchers. A certificate pays the difference between the fair market rent and 30% of the tenant’s monthly income, while a voucher allows a tenant to choose housing that may cost above the fair market figure, with the tenant paying the extra cost. The voucher also allows the tenant to rent a unit below the fair market rent figure with the tenant keeping the savings. Low-Income Housing Tax Credit Program - The Low-Income Housing Tax Credit Program was created by the Tax Reform Act of 1986 to provide an alternate method of funding low-and moderate-income housing. Each state receives a tax credit, based upon population, toward funding housing that meets program guidelines. The tax credits are then used to leverage private capital into new construction or acquisition and rehabilitation of affordable housing. Limitations on projects funded under the Tax Credit programs include minimum require- ments that a certain percentage of units remain rent-restricted, based upon median income, for a term of 15 years. Local Resources Tax Exempt Multi-Family Revenue Bonds – The construction, acquisition, and rehabilitation of multi-family rental housing developments can be funded by tax exempt bonds which provide a lower interest rate than is available through conventional financing. Projects financed through these bonds are required to set aside 20% of the units for occupancy by very low- income households or 40% of the units to be set aside for households at 60% of the area median income (AMI). Tax exempt bonds for multi-family housing may also be issued to refinance existing tax-exempt debt, which is referred to as a refunding bond issue. The Seasons Diamond Bar Senior Apartments was refinanced in 1999 under the California Community Development Authority’s Multifamily Housing Re-funding Bond. According to the terms of the new bond agreement, income restrictions for residents and corresponding rent limits were set. For 6.2.a Packet Pg. 225 9-24 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 the duration of the bond which expires in December of 2034, all units will be affordable: 30 units will be very low income at 50% AMI, 82 units will be low income at 80% AMI, and 37 units will be moderate income at 100% AMI. The Seasons Apartments are owned by the Corporate Fund for Housing, a non- profit organization. Housing Agreements – The City can assist in the development of new affordable housing units by entering into Disposition Development Agree- ments (DDA) or Owner Participation Agreements (OPA) with developers. DDAs or OPAs may provide for the disposition of Agency-owned land at a price which can support the develop- ment of units at an affordable housing cost for low- and moderate-income households. These agreements may also provide for development assistance, usually in the form of a density bonus or the payment of specified development fees or other development costs which cannot be supported by the proposed development. Mortgage Credit Certificates – The Mortgage Credit Certificates (MCC) program3 is designed to help low- and moderate-income first-time home- buyers qualify for conventional first mortgage loans by increasing the homebuyer’s after-tax income. The MCC is a direct tax credit for eligible homebuyers equal to 20% of the mortgage interest paid during the year. The other 80% of mortgage interest can still be taken as an income deduction. 3 https://wwwa.lacda.org/for-homeowners/homebuyer/mortgage-credit-certificate-program 4 https://wwwa.lacda.org/for-homeowners/homebuyer/southern-california-home-financing- authority Diamond Bar is a participating city in the County-run MCC program. Home Ownership Program – The Home Ownership Program (HOP) provides assistance to low-income, first-time homebuyers in purchasing a home. It is administered by the Los Angeles County Development Authority’s Housing Development and Preservation Division. The program has provided hundreds of Los Angeles County residents with the means to afford to fulfill their dream of home ownership. The maximum gross annual income for eligible participants is 80% of the median income for Los Angeles County. Southern California Home Financing Authority Programs – SCHFA4 is a joint powers authority between Los Angeles and Orange Counties formed in 1988 to issue tax-exempt mortgage revenue bonds for low- to moderate-income First-Time Homebuyers. SCHFA has helped thousands of individuals and families fulfill their dreams of owning a home. This program makes buying a home more affordable for qualifying homebuyers by offering a competitive 30-year fixed rate loan and a grant for down-payment and closing costs assistance. The program is administered by the Los Angeles County Development Authority and the Public Finance Division of the County of Orange. SCHFA does not lend money directly to homebuyers. Homebuyers must work directly with a participating lender. The income limit for Los Angeles County households as of 2021 is $135,120. 6.2.a Packet Pg. 226 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-25 9.0 Fannie Mae Down Payment Assistance Program5 – The Federal National Mortgage Association, known as “Fannie Mae,” offers a program that provides second mortgages to homeowners. The second mortgage can serve as the down payment and closing costs on home purchases. Under this program, a city or county is required to post a reserve fund equal to 20% of an amount that Fannie Mae then makes available for such mortgages. Non-Profit Organizations – Non-profit organizations play a major role in the development of affordable housing in Los Angeles County. LACDA supple- ments its own efforts of producing affordable housing by entering into partnerships with private sector and non-profit developers and housing development corporations. ENERGY CONSERVATION OPPORTUNITIES As residential energy costs rise, the subsequent increasing utility costs reduce the affordability of housing. Although the City is mostly developed, new infill development and rehabilita- tion activities could occur, allowing the City to directly affect energy use within its jurisdiction. State of California Energy Efficiency Standards for Residential and Nonresidential Buildings were established in 1978 in response to a legislative mandate to reduce California's energy consumption. The standards are codified in Title 24 of the California Code of Regulations and are updated periodically to allow consideration and possible incorpora- tion of new energy efficiency technologies and methods. The most recent update to State Building Energy Efficiency Standards were adopted in 2019. Building Energy Efficiency Standards have saved Californians billions of dollars in reduced electricity bills. They conserve nonrenewable resources, such as natural gas, and 5 https://singlefamily.fanniemae.com/originating-underwriting/mortgage-products/shared- equity-homebuyer-assistance-programs 6 California Energy Commission (https://www.energy.ca.gov/programs-and- topics/programs/building-energy-efficiency-standards ) ensure renewable resources are extended as far as possible so power plants do not need to be built.6 Title 24 sets forth mandatory energy standards and requires the adoption of an “energy budget” for all new residential buildings and additions to residential buildings. Separate requirements are adopted for “low-rise” residential construction (i.e., no more than three stories) and non-residential buildings, which includes hotels, motels, and multi-family residential buildings with four or more habitable stories. The standards specify energy saving design for lighting, walls, ceilings and floor installations, as well as heating and cooling equipment and systems, gas cooling devices, conservation standards and the use of non-depleting energy sources, such as solar energy or wind power. The home building industry must comply with these standards while localities are responsible for enforcing the energy conservation regulations 6.2.a Packet Pg. 227 9-26 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 through the plan check and building inspection processes. In addition to State energy regulations, the City encourages energy efficiency through its Climate Action Plan7 and Home Improvement Program, which provides low- and moderate-income households funds for home improve- ments that may include insulation and energy-efficient windows and doors. The City also encourages mixed-use development, which facilitates energy efficiency by reducing vehicular trip lengths. The City also publishes a monthly Diamond Bar Connection newsletter at https://www.diamondbarca.gov/208/D iamond-Bar-Connection---Monthly- Newslet, which informs residents of energy conservation tips and cost saving programs through the various utility providers. 7 https://www.diamondbarca.gov/DocumentCenter/View/7071/Diamond-Bar-Climate-Action- Plan-2040pdf?bidId= 6.2.a Packet Pg. 228 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-27 9.0 9.4 CONSTRAINTS This section evaluates potential constraints to the development, maintenance and improvement of housing, and identifies appropriate steps to mitigate potential constraints, where feasible. Potential constraints to housing are discussed below, and include both governmental and non- governmental factors. GOVERNMENTAL CONSTRAINTS Governmental regulations, while intended to protect the public health, safety and welfare, can also unintentionally increase the cost of housing. Potential governmental constraints include land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local development processing and permit procedures. Land Use Plans and Regulations General Plan Each city and county in California must prepare a comprehensive, long-term General Plan to guide its future. The land use element of the General Plan establishes the basic land uses and density of development within the various areas of the City. Under State law, the General Plan elements must be internally consistent and the City’s zoning and development regulations must be consistent with the General Plan. Thus, the land use plan must provide suitable locations and densities to implement the policies of the Housing Element. In 2019 the City adopted a comprehensive General Plan update8 that provides guiding policies for land use and development through the 2040 horizon year. The 2040 Diamond Bar General Plan Land Use Element provides for seven residential land use designations and four mixed-use designations allowing residential use, as shown in Table 9-28. The Land Use & Economic Development Chapter designates approximately 5,148 acres (54%) of the land area within City limits for residential uses, and mixed-use designations allowing residential use comprise an additional 284 acres. These land use designations provide for a wide range of residential types and densities throughout the City. 8 https://www.diamondbarca.gov/961/General-Plan-2040 6.2.a Packet Pg. 229 9-28 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Table 9-28: Land Use Categories, Diamond Bar 2040 General Plan Source: Diamond Bar 2040 General Plan, Table 2-2 6.2.a Packet Pg. 230 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-29 9.0 General Plan Focus Areas The 2040 General Plan identifies four focus areas where major land use changes are planned as part of a strategy to provide walkable mixed-use activity centers. These focus areas provide opportunities for infill develop- ment that can incorporate a range of housing, employment, and recreational uses to meet the needs of families, young people, senior citizens, and residents of all incomes. These focus areas were designed in response to community priorities including a desire for expanded access to entertainment and community gathering places, and the need to accommodate the City’s growing and diverse population. New land use designations were established for each of these focus areas to facilitate development, as described under Land Use Classifications, below. • The Town Center Mixed Use focus area, located along Diamond Bar Boulevard between SR-60 and Golden Springs Drive, is intended to build on the success of recent commercial redevelopment in that area. The Town Center is designated for mixed-use development that would serve as a center of activity for residents and provide housing, entertainment and retail opportunities and community gathering spaces in a pleasant, walkable environment. A maximum residential density of 20.0 dwelling units per acre is permitted. • The Neighborhood Mixed Use focus area is envisioned as a combination of residential and ancillary neighborhood-serving retail and service uses to promote revitalization of the segment of North Diamond Bar Boulevard between the SR-60 interchange and Highland Valley Road. This neighborhood has potential to benefit from its proximity to Mt. San Antonio College and Cal Poly Pomona. This land use designation has an allowable residential density of up to 30.0 dwelling units per acre. • The Transit-Oriented Mixed Use focus area leverages underutilized sites adjacent to the Metrolink commuter rail station to provide for higher-density housing, offices, and supporting commercial uses close to regional transit. This focus area allows for new employment and housing development in a key location that emphasizes multi-modal transportation options. This General Plan designation allows residential development at a density of 20.0 to 30.0 dwelling units per acre. • The Community Core focus area covers the existing Diamond Bar Golf Course, which is currently operated by Los Angeles County. Should the County choose to discontinue operation of the golf course or to reduce its size, the Community Core would be the City’s preferred approach to reuse of the site. The Community Core is envisioned as a master- planned mixed-use, pedestrian- oriented community and regional destination. The majority of the northern portion is envisioned to support a park or consolidated golf course along with additional community or civic uses. The southern portion is envisioned to accommodate a mix of uses emphasizing destination and specialty retail, dining, and entertainment, including 6.2.a Packet Pg. 231 9-30 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 opportunities for residential, hospitality, and community and civic uses. This location benefits from proximity to the freeways and nearby commercial uses. The General Plan does not specify density or intensity standards for this focus area and a master plan will be required for the entire property to ensure its cohesive development. Zoning Designations The City regulates the type, location, density, and scale of residential development through the Develop- ment Code (Title 22 of the Diamond Bar Municipal Code) and Zoning Map. These regulations serve to implement the General Plan and are designed to protect and promote the health, safety, and general welfare of residents. The Development Code and Zoning Map set forth residential development standards and review procedures for each zoning district. The seven zoning districts that allow residential units as a permitted use are as follows: RR Rural Residential RL Low Density Residential RLM Low Medium Density Residential RM Medium Density Residential RMH Medium High Density Residential RH High Density District RH-30 High Density District (30 units per acre) A summary of the development standards for these zoning districts is provided in Table 9-29. These develop- ment standards provide for a range of housing types and do not create unreasonable constraints on the development of housing. Table 9-29: Residential Development Standards Development Standard1 Zoning District Designations RR RL RLM RM RMH RH/RH-30 Maximum density (units/acre) 1 3 5 12 16 20/30 Minimum Lot Area (sq. ft.) 1 acre 10,000 sf 8,000 sf 5,000 sf 5,000 sf 5,000 sf Minimum Front Yard (ft.) 30 ft 20 ft 20 ft 20 ft 20 ft 20 ft Minimum Side Yard (ft.) 15 ft. on one side, and 10 ft. on the other2 10 ft. on one side, and 5 ft. on the other3 10 ft. on one side, and 5 ft. on the other3 5 ft. 5 ft. 5 ft. plus 1 ft. for each story over 2 Minimum Street Side Setback (ft.) 15 ft., reversed corner lot; 10 ft. otherwise 10 ft., reversed corner lot; 5 ft. otherwise 10 ft., reversed corner lot; 5 ft. otherwise 10 ft., reversed corner lot; 5 ft. otherwise 7.5 ft., reversed corner lot; 5 ft. otherwise 7.5 ft., reversed corner lot; 5 ft. otherwise Minimum Rear Yard (ft.) 25 ft.4 20 ft.4 20 ft.4 25 ft.4 20 ft.4 20 ft.4 Maximum Lot Coverage (%) 30% 40% 40% 30% 30% 30% Maximum Building Height (ft.) 35 ft 35 ft 35 ft 35 ft 35 ft 35 ft Source: Diamond Bar Zoning Ordinance Notes: 1. Development standards in the planned communities are governed by a master plan, specific plan, or similar document and may vary from current zoning. 2. There cannot be less than 25 ft. between structures on adjoining parcels. 3. There cannot be less than 15 ft. between structures on adjoining parcels. 4. From the property line or building pad on a descending slope, whichever is applicable. 6.2.a Packet Pg. 232 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-31 9.0 A summary of the types of housing permitted by the City’s Development Code is provided in Table 9-30. Table 9-30: Permitted Residential Development by Zoning District Housing Type RR RL RLM RM RMH RH/RH-30 Single-Family Detached P P P P P P Single-Family Attached P P P Multi-Family P P P Manufactured Housing P P P P P P Mobile Home Park CUP CUP CUP CUP CUP CUP Second Units P P Emergency Shelters1 Transitional & Supportive Housing 2 2 2 2 2 2 Residential Care Home (6 or fewer persons)3 P P P P P P Residential Care Home (7 or more persons)3 CUP CUP CUP Senior Housing P P P P P P Single Room Occupancy4 Source: Diamond Bar Zoning Ordinance P = Permitted, ministerial zoning clearance required CUP = Conditional Use Permit Notes: 1. Emergency shelters are permitted in the Light Industrial zone. 2. Transitional and supportive housing are permitted in any residential zone subject to the same standards and procedures as apply to other residential uses of the same type in the same zone. 3. Residential Care Homes are defined as facilities providing residential social and personal care for children, the elderly, and people with some limits on their ability for self-care, but where medical care is not a major element. Includes children's' homes; family care homes; foster homes; group homes; halfway houses; orphanages; rehabilitation centers; and similar uses. 4. SROs are conditionally permitted in the I (light industrial) zone The Development Code provides for a variety of housing types including single-family homes (both attached and detached), multi-family (both rental and condominiums), manufactured housing, special needs housing, and accessory dwelling units. Effect of Zoning and Development Standards on Housing Supply and Affordability Development standards can affect the feasibility of development projects, particularly housing that is affordable to lower- and moderate-income households. The most significant of these standards is density. Higher densities generally result in lower per- unit land costs, thereby reducing overall development cost, although this is not always the case. For example, at 9 Memo of June 20, 2012 from California Department of Housing and Community Development. some point higher density may require more expensive construction methods such as parking structures, or below- grade garages. Pursuant to AB 2348 of 2004, the “default density” for Diamond Bar is 30 dwelling units per acre9. The default density refers to the density at which lower-income housing development is presumed to be feasible, although State law allows jurisdictions to propose alternative densities that are sufficient to facilitate affordable housing based on local experience and circumstances. The RH-30 district allows multi-family development at the default density of 30 units per acre. In addition, the Neighborhood Mixed Use and Transit-Oriented Mixed Use land use designations allow residential development at up to 30 units/acre. 6.2.a Packet Pg. 233 9-32 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 The City is currently in the process of updating the Development Code to establish regulations consistent with these new General Plan land use designations (see Program H-8 in Section 9.5). Although appropriate development standards are necessary for affordable housing to be feasible, large public subsidies are typically necessary to reduce costs to the level that lower- income households can afford. Special Needs Housing Persons with special needs include those in residential care facilities, persons with disabilities, the elderly, farm workers, persons needing emergency shelter or transitional living arrangements, and single room occupancy units. The City’s provisions for these housing types are discussed below. Residential Care Facilities Residential care facilities refer to any family home, group home, or rehabilitation facility that provides non- medical care to persons in need of personal services, protection, super- vision, assistance, guidance, or training essential for daily living. The Development Code explicitly references Residential Care Homes (§22.80.020). In accordance with State law, residential care homes that serve six or fewer persons are permitted by- right in all residential districts with only a ministerial zoning clearance required. Residential care homes serving more than six persons are permitted by conditional use permit in the RM, RMH, and RH Districts. There are no separation requirements for residential care facilities. These provisions are consistent with State law and do not pose a significant constraint on the establishment of such facilities. Definition of Family Development Code §22.80.020 defines family as “one or more persons living together as a single housekeeping unit in a dwelling unit.” Single housekeeping unit means “the functional equivalent of a traditional family, whose members are an interactive group of persons jointly occupying a single dwelling unit, including the joint use of and responsibility for common areas, and sharing household activities and responsibilities such as meals, chores, household maintenance, and expenses, and where, if the unit is rented, all adult residents have chosen to jointly occupy the entire premises of the dwelling unit, under a single written lease with joint use and responsibility for the premises, and the makeup of the household occupying the unit is determined by the residents of the unit rather than the landlord or property manager.” These definitions are consistent with fair housing law and do not pose an unreasonable constraint to housing. Housing for Persons with Disabilities Both the federal Fair Housing Act and the California Fair Employment and Housing Act impose an affirmative duty on local governments to make reasonable accommodations (i.e., modifications or exceptions) in their zoning laws and other land use regulations when such accommoda- tions may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. The Building Codes adopted by the City of Diamond Bar incorporate accessibility standards contained in Title 24 of the California Administrative Code. For 6.2.a Packet Pg. 234 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-33 9.0 example, apartment complexes of three or more units and condominium complexes of four or more units must be designed to accessibility standards. Compliance with building codes and the Americans with Disabilities Act (ADA) may increase the cost of housing production and can also impact the viability of rehabilitation of older properties required to be brought up to current code standards. However, these regulations provide minimum standards that must be complied with to ensure the development of safe and accessible housing. Senate Bill 520 of 2001 requires cities to make reasonable accommodation in housing for persons with disabilities. The City has adopted procedures (Development Code §22.02.060) for reviewing and approving requests for reasonable accommodation for persons with disabilities consistent with State law. Farm Worker Housing As discussed in Section 9.2, Housing Needs Assessment, the City of Diamond Bar has no major agricultural areas and no significant need for permanent on- site farm worker housing. Commercial agriculture is not permitted in any residential zoning district. The City’s overall efforts to provide and maintain affordable housing opportunities will help to support the few seasonal farm workers that may choose to reside in the City. Housing for the Elderly Senior housing projects are a permitted use in all residential districts. A density bonus is also permitted for the construction of senior housing pursuant to Government Code §§65915-65918. Development Code §22.30.040 establishes reduced parking requirements for senior housing of 1 space for each unit with half the spaces covered, plus 1 guest parking space for each 10 units. These regulations are not considered to be a constraint to the development of senior housing because the regulations are the same as for other residential uses in the same districts. Emergency Shelters, Transitional/ Supportive Housing and Low Barrier Navigation Centers Emergency shelters are facilities that provide a safe alternative to the streets either in a shelter facility, or through the use of motel vouchers. Emergency shelter is short-term and usually for 30 days or less. Transitional housing is longer-term, typically up to 2 years, while supportive housing may have no occupancy limit. Programs that operate transitional and supportive housing generally require that the resident participate in a structured program to work toward established goals so that they can move on to permanent housing and may include supportive services such as counseling. SB 2 of 2007 strengthened the planning requirements for emergency shelters and transitional/supportive housing. This bill requires jurisdictions to evaluate their need for shelters compared to available facilities to address the need. If existing shelter facilities are not sufficient to accommodate the need, jurisdictions must designate at least one zone where year-round shelters can be accommodated. There are currently no emergency shelters located in the City. As noted in Section 9.2, the most recent homeless survey reported 4 homeless persons living in Diamond Bar. 6.2.a Packet Pg. 235 9-34 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 To reduce constraints to the establish- ment of emergency shelters, the Development Code was amended to allow shelters with up to 30 beds by- right in the Light Industrial (I) zone subject to objective development standards. This zone encompasses approximately 98 acres with an average parcel size of 1.6 acres and contains underutilized parcels and vacant buildings that could accommo- date at least one emergency shelter. In 2019 the San Gabriel Valley Council of Governments initiated a study to assess the needs of the homeless and develop a coordinated strategy to address those needs. As a member jurisdiction, Diamond Bar is cooperating in this study and is committed to a fair- share approach to providing the necessary services and facilities for the homeless persons and families identified in the community. SB 2 also requires that transitional and supportive housing be considered a residential use that is subject only to the same requirements and procedures as other residential uses of the same type in the same zone. The Development Code establishes regulations for transitional and supportive housing in compliance with State law. In 2018 AB 2162 amended State law to require that supportive housing be a use by- right in zones where multi-family and mixed uses are permitted, including non-residential zones permitting multi- family uses, if the proposed housing development meets specified criteria. Program H-11 in Section 9.5 includes a commitment to process an amendment to the Development Code in compliance with this requirement. In 2019 the State Legislature adopted AB 101 establishing requirements related to local regulation of low barrier navigation centers, which are defined as “Housing first, low-barrier, service- enriched shelters focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.” Low Barrier means best practices to reduce barriers to entry, and may include, but is not limited to: (1) The presence of partners if it is not a population-specific site, such as for survivors of domestic violence or sexual assault, women, or youth (2) Accommodation of residents’ pets (3) The storage of possessions (4) Privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms” Low barrier navigation centers meeting specified standards must be allowed by-right in areas zoned for mixed use and in nonresidential zones permitting multi-family uses. Program H 11 in Section 9.5 includes a commitment to process an amendment to the Development Code in compliance with this requirement. Single Room Occupancy Single room occupancy (SRO) facilities are small studio-type units and are conditionally permitted in the Light Industrial District pursuant to Sec. 22.42.160 of the Development Code. Development standards for these uses do not pose an unreasonable constraint to SRO development. 6.2.a Packet Pg. 236 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-35 9.0 Off-Street Parking Requirements The City’s parking requirements for residential uses vary by residential type. Single-family dwellings and duplex housing require two parking spaces per unit in a garage. Mobile homes require two parking spaces plus guest parking. Studio units require one space for each unit in a garage, plus guest parking. Multi-family dwellings, condos, and other attached dwellings are required to have two spaces in a garage for each unit plus 0.5 space for each bedroom over two, and guest parking. Accessory dwelling units are required to have one space in addition to that required for the single-family unit. Senior housing projects are required to provide one space for each unit with half of the spaces covered, plus one guest parking space for each ten units. Senior congregate care facilities are required to have 0.5 space for each residential unit, plus one space for each four units for guests and employees. Extended care facilities are required to provide one space for each three beds the facility is licensed to accommodate. These parking requirements are summarized in Table 9-31. The required parking is not excessive and is not considered to be a constraint on the production of affordable housing. Table 9-31: Residential Parking Requirements Type of Unit Minimum Parking Space Required Single Family Detached Dwellings 2 off-street parking spaces per dwelling (in a garage) Duplex Housing Units 2 off-street parking spaces for each unit (in a garage) Mobile Homes (in M.H. parks) 2 off-street parking spaces for each mobile home (tandem parking allowed in an attached carport), plus guest parking* Accessory Dwelling Units 1 off-street parking space in addition to that required for a single-family unit Multi-Family Dwellings, Condominiums, and Other Attached Dwellings* Studio 1.0 off-street parking space per dwelling unit (in a garage), plus guest parking* 1 or More Bedrooms 2.0 off-street parking spaces per unit (in a garage), plus 0.5 additional spaces for each bedroom over 2, plus guest parking** Senior Housing Projects 1 off-street parking space per unit with half of the spaces covered, plus 1 guest parking space for each 10 units Senior Congregate Care Facilities 0.5 space for each residential unit, plus 1 space for each 4 units for guests and employees Extended Care Facilities (elderly, skilled nursing facilities and residential care homes) 1 space for each 3 beds the facility is licensed to accommodate *Reduced parking is allowed for projects that provide affordable housing pursuant to state Density Bonus law. ** Guest parking shall be provided at a ratio of one space for each four required parking spaces. Source: Diamond Bar Development Code, 3/2021 Accessory Dwelling Units Accessory dwelling units (ADUs) provide an important source of affordable housing for seniors, young adults, caregivers and other low- and moderate-income segments of the population. In recent years, the State Legislature has adopted extensive changes to ADU law to encourage housing production. Among the most significant changes is the requirement for cities to allow one ADU plus one “junior ADU” on single-family residential lots by-right subject to limited develop- 6.2.a Packet Pg. 237 9-36 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 ment standards. Program H-10 in Section 9.5 includes a commitment to update the City’s ADU regulations in conformance with current State law. Density Bonus Under Government Code §§65915- 65918, a density increase over the otherwise maximum allowable residential density under the Municipal Code is available to developers who agree to construct housing develop- ments with units affordable to low- or moderate-income households or senior citizen housing development. AB 2345 of 2019 amended State law to revise density bonus incentives that are available for affordable housing developments. Program H 12 in Section 9.5 includes a commitment to amend the Development Code to include these changes to State density bonus law. Mobile Homes/Manufactured Housing There is often an economy of scale in manufacturing homes in a plant rather than on site, thereby reducing cost. State law precludes local governments from prohibiting the installation of mobile homes on permanent foundations on single-family lots. It also declares a mobile home park to be a permitted land use on any land planned and zoned for residential use, and prohibits requiring the average density in a new mobile home park to be less than that permitted by the Municipal Code. In the City of Diamond Bar, manufac- tured housing is allowed in all residential zones as a permitted use provided the installation complies with the site development standards for the applicable zoning district. Mobile home parks are allowed as conditional use within all residential districts. There are two mobile home parks in Diamond Bar, both located in the western portion of the City: Diamond Bar Estates and Walnut Creek Estates. Condominium Conversions In order to reduce the impacts of condominium conversions on residents of rental housing, some of which provides housing for low- and moderate-income persons, the City’s Municipal Code requires that in addition to complying with all of the regulations and noticing requirements of the Subdivision Map Act for condo conversions, the applicant must propose a relocation assistance program that will assist tenants displaced through the conversion in relocating to equivalent or better housing, assess the vacancy rate in multi-family housing within the City, and provide a report to all tenants of the subject property at least three days prior to the hearing. When a condo conversion is permitted, the increase in the supply of less expensive for-sale units helps to compensate for the loss of rental units. The ordinance to regulate condominium conversions is reasonable to preserve rental housing opportunities and does not present an unreasonable constraint on the production of ownership housing. Building Codes State law prohibits the imposition of building standards that are not necessitated by local geographic, climatic or topographic conditions and requires that local governments making changes or modifications in building standards must report such changes to the Department of Housing and Community Development and file an expressed finding that the change is needed. The City’s building codes are based upon the California Building, Plumbing, 6.2.a Packet Pg. 238 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-37 9.0 Mechanical and Electrical Codes. These are considered to be the minimum necessary to protect the public's health, safety and welfare. No additional regulations have been imposed by the City that would unnecessarily add to housing costs. DEVELOPMENT PROCESSING PROCEDURES Residential Permit Processing State Planning and Zoning Law provides permit processing require- ments for residential development. Within the framework of state require- ments, the City has structured its development review process to minimize the time required to obtain permits while ensuring that projects receive careful review. All residential development is reviewed by City staff for zoning, building, and fire code compliance prior to issuance of building permits. Processing times vary and depend on the size and complexity of the project. Projects reviewed by the Planning Commission, such as Conditional Use Permits, typically require between 1 and 2 months to process. Tentative parcel maps and tentative tract maps typically require 3 to 6 months to process. Projects reviewed by the City Council, such as General Plan and Zoning Amendments, typically require between 3 and 6months to process. Table 9-32 identifies the review authority responsible for making decisions on land use permits and other entitlements, as well as the estimated processing time for each type of application. Table 9-32: Review Authority for Residential Development Type of Permit or Decision (*) Est. Processing Time Director Hearing Officer Planning Commission City Council Administrative Development Review (SF or MF) 6-8 weeks Final Appeal Appeal Development Review (SF or MF) 8 weeks Final Appeal Development Agreement** 12-24 weeks Recommend Final Minor Conditional Use Permit 4-6 weeks Final Appeal Appeal Conditional Use Permit 8 weeks Final Appeal Minor Variance 2-4 weeks Final Appeal Appeal Variance** 4-8 weeks Final Appeal General Plan Amendment** 12-24 weeks Recommend Final Specific Plan** 12-24 weeks Recommend Final Zoning Map or Development Code Amendment 12-24 weeks Recommend Final Tentative Map** 12-24 weeks Recommend Final Plot Plan 4 weeks Final Appeal Appeal Zoning Clearance (over the counter) 1 week Final Appeal Appeal Source: Diamond Bar Development Code; Community Development Department * The Director and Hearing Officer may defer action on permit applications and refer the item(s) to the Commission for final decision. ** Permit typically involves environmental clearance pursuant to CEQA and is subject to the Permit Streamlining Act. 6.2.a Packet Pg. 239 9-38 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Certain steps of the development process are required by State rather than local laws. The State has defined processing deadlines to limit the amount of time needed for review of required reports and projects. The following describes the five-step development review process in Diamond Bar: • Application Submittal. Applications for land use permits and other matters pertaining to the Development Code must be filed on a City application form, together with all necessary fees and/or deposits, exhibits, maps, materials, plans, reports, and other information required by the Development Services Department. Prior to submitting an application, applicants are strongly encouraged to request a pre-application conference with staff. The purpose of the pre- application conference is to inform the applicant of City requirements as they pertain to the proposed development project, review the procedures outlined in the Development Code, explore possible alternatives or modifications, and identify necessary technical studies and required information related to the environmental review of the project. Single-family residential uses are permitted by-right in all residential zoning districts. Multi-family residential uses are permitted by- right in the RM, RMH and RH zones. All new residential construction and some additions to existing residences are subject to “Development Review.” Development Review and Administrative Development Review applications for projects that also require the approval of another discretionary permit (e.g. conditional use permit) shall be acted upon concurrently with the discretionary permit and the final determination shall be made by the highest level of review authority in compliance with Table 9-32. Development Review. An applica- tion for Development Review is required for residential projects that propose one or more dwelling units (detached or attached) and that involve the issuance of a building permit for construction or reconstruction of a structure(s) meeting the following criteria: • New construction on a vacant lot and new structures, additions to structures, and reconstruction projects which are equal to 50% or greater of the floor area of existing structures on site, or have 5,001 square feet or more of combined gross floor area in any commercial, industrial, and institutional development; or • Projects involving a substantial change or intensification of land use (e.g. the conversion of and existing structure to a restaurant, or the conversion of a residential structure to an office or commercial use); or • Residential, commercial, industrial, or institutional projects proposed upon a descending slope abutting a public street. 6.2.a Packet Pg. 240 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-39 9.0 Administrative Development Review. An application for Administrative Development Review is required for residential, industrial, and institutional developments that involve the issuance of a building permit for construction or reconstruction of a structure(s) meeting the following thresholds of review: • Commercial, industrial, and institutional developments that propose up to 5,000 square feet of combined floor area; or • Projects that do not meet the specific criteria for Development Review. Development Review and Administrative Development Review are non-discretionary review procedures intended to address design issues such as landscaping and building massing, and do not include a review of the merits or suitability of the use itself. • Initial Application Review. The Director reviews all applications for completeness and accuracy before they are accepted as being complete and officially filed. Processing of applications does not commence until all required fees and deposits have been paid. Without the application fee or a deposit, the application is not deemed complete. Within 30 days of a submittal, staff reviews the application package and the applicant is informed in writing of whether or not the application is deemed complete and has been accepted for processing. If the application is incomplete, the applicant is advised regarding what additional information is required. If a pending application is not deemed complete within 6 months after the first filing with the Department, the application expires and is deemed withdrawn. Any remaining deposit amount is refunded, subject to administrative processing fees. • Environmental Review. After acceptance of a complete application, a project is reviewed for compliance with the California Environmental Quality Act (CEQA). A determination is made regarding whether or not the proposed project is exempt from the requirements of CEQA. If the project is not exempt, a determination is made regarding whether a Negative Declaration, Mitigated Negative Declaration, or Environmental Impact Report will be required based on the evaluation and consideration of information provided by an initial study. If an EIR is required, a minimum of nine months to one year is typically required to complete the process. • Staff Report and Recommenda- tions. A staff report is prepared by the Director that describes the conclusions and findings about the proposed land use development. The report includes recommendations on the approval, approval with conditions, or disapproval of the application. Staff reports are provided to the applicant at the same time they are provided to the Hearing Officer, or members of the Commission and/or Council, before a hearing on the application. 6.2.a Packet Pg. 241 9-40 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 • Notice and Hearings. An application for a development review or administrative development review is scheduled for a public hearing once the department has determined the application complete. Administrative development reviews and minor CUPs are heard by a Hearing Officer (staff) while more significant applications are heard by the Planning Commission. Legislative acts such as General Plan amendments, zone changes, specific plans and development agreements require City Council approval. Upon completion of the public hearing, the review authority shall announce and record the decision within 21 days following the conclusion of the public hearing. The decision shall contain the required findings and a copy of the resolution shall be mailed to the applicant. These processes are typical of most California jurisdictions and help to ensure that the development review process does not act as a constraint to housing development. Development Fees and Improvement Requirements After the passage of Proposition 13 and its limitation on local governments’ property tax revenues, cities and counties have faced increasing difficulty in providing public services and facilities to serve their residents. One of the main consequences of Proposition 13 has been the shift in funding of new infrastructure from general tax revenues to development impact fees and improvement requirements on land developers. The City requires developers to provide on- site and off-site improvements necessary to serve their projects. Such improvements may include water, sewer and other utility extensions, street construction and traffic control device installation that are reasonably related to the project. Dedication of land or in- lieu fees may also be required of a project for rights-of-way, transit facilities, recreational facilities and school sites, consistent with the Subdivision Map Act. State law limits fees charged for development permit processing to the reasonable cost of providing the service for which the fee is charged. Various fees and assessments are charged by the City and other public agencies to cover the costs of processing permit applications and providing services and facilities such as schools, parks and infrastructure. Table 9-33 provides a list of fees the City of Diamond Bar charges for new, standard residential development. The City periodically evaluates the actual cost of processing development permits when revising its fee schedule. The last fee schedule update was adopted in 2020. 6.2.a Packet Pg. 242 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-41 9.0 Table 9-33: Planning and Development Fees Fee Category Fee or Deposit Amounta Planning and Application Feesa Administrative Development Review $1,912.94 Application plus $2,000 deposit (RFD) Development Agreement $10,000 deposit (RFD) General Plan Amendment $10,000 deposit (RFD) Zone Change/Map Amendment Specific Plan $10,000 deposit (RFD) $10,000deposit (RFD) Conditional Use Permit $2,174.56 Application plus $4,000 deposit (RFD) Minor Conditional Use Permit $1,738.56 Application plus $2,000 deposit (RFD) Tentative Tract Map $5,000 deposit (RFD) Tentative Parcel Map Density Bonus Variance Minor Variance $5,000 deposit (RFD) $5,000 deposit (RFD) $5,000 deposit (RFD) $1,547.80 Application Environmental Environmental Analysis (b) Environmental Mitigation Monitoring Program (b) Development Impact Fees Drainage Facilities None Traffic Facilities (d) Public Facilities None Fire Facilities None Park Facilities (d) Water/Sewer Connection (d) Source: City of Diamond Bar, 2021 a Items with deposits are based on actual processing costs which may exceed initial deposit amount. b Cost determined as part of the environmental review c (RFD) Deposit based fees will be charged at the fully allocated hourly rates for all personnel involved plus any outside costs, with any unused portion of a deposit-based fee being refunded to the applicant at the conclusions of the project. In certain circumstances where project costs are higher than the available deposit, the applicant will be required to submit additional funds into the deposit account. d Development impact fees are determined by the project’s scope, location, and existing conditions. The developer must prepare the appropriate study and provide the report for staff to review. When applicable, public improvements may be conditioned with, or in lieu of, development impact fees. Improvem ent Requirements Throughout California, developers are required to construct on- and off-site improvements needed to serve new projects, including streets, sidewalks, and utilities. City road standards vary by roadway designation as provided in Table 9-34. A local residential street requires a 44- to 60-foot right-of-way, with two 12-foot travel lanes. These road standards are typical for cities in Los Angeles County and do not act as a constraint to housing development. The City’s Capital Improvement Program (CIP) contains a schedule of public improvements including streets, bridges, overpasses and other public works projects to facilitate the continued build-out of the City’s General Plan. The CIP helps to ensure that construction of public improvements is coordinated with private development. 6.2.a Packet Pg. 243 9-42 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Table 9-34: Road Improvement Standards Roadway Designation Number of Lanes Right-of-Way Width Curb-to Curb Width Major arterial 4 100-120 N/A Boulevard 2-4 60-100 N/A Collector street 2-4 60-80 N/A Local street 2 44-60 28-36 Source: City of Diamond Bar, 2021 Although development fees and improvement requirements increase the cost of housing, cities have little choice in establishing such require- ments due to the limitations on property taxes and other revenue sources needed to fund public services and improvements. NON-GOVERNMENTAL CONSTRAINTS Environmental Constraints Environmental constraints include physical features such as steep slopes, fault zones, floodplains, sensitive biological habitat, agricultural lands, and wildland fire hazards. In many cases, development of these areas is constrained by State and federal laws (e.g., FEMA floodplain regulations, the Clean Water Act, the Endangered Species Act, the State Fish and Game Code and the Alquist-Priolo Act). Most of the level, easily buildable land in Diamond Bar has already been developed, and much of the remaining land has a variety of geotechnical and topographic conditions that may constrain the development of lower- priced residential units. Large portions of the City contain steep slopes that pose a significant constraint to development. In addition to slope constraints, many of the hillsides in Diamond Bar have a potential for landslides. Slope stability is affected by such factors as soil type, gradient of the slope, underlying geologic structure, and local drainage patterns. The rolling topography and composition of local soils throughout Diamond Bar create numerous areas for potential landslide hazards. Although many historical landslide locations have been stabilized, a number of potential landslide areas still exist in the eastern portion of the City as well as within Tonner Canyon in the Sphere of Influence. Figure 9-2 illustrates the significant areas with geological constraints. Wildland fire hazards present another environmental constraint to housing development. As seen in Figure 9-3, significant portions of the city are within designated fire hazard zones. As the frequency and intensity of wildfires have increased in recent years, housing development becomes more difficult in these areas. 6.2.a Packet Pg. 244 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-43 9.0 Infrastructure Constraints As discussed under Development Fees and Improvement Requirements, the City requires developers to provide on- site and off-site improvements necessary to serve their projects. Dedication of land or in-lieu fees may also be required of a project for rights- of-way, transit facilities, recreational facilities and school sites, consistent with the Subdivision Map Act. Additionally, the City’s Capital Improvement Program (CIP) contains a schedule of public improvements including streets and other public works projects to facilitate the continued build-out of the City’s General Plan. The CIP helps to ensure that construction of public improvements is coordinated with development. As a result of these policies, any infrastructure constraints which currently exist must be fully mitigated and financed as growth occurs. Wastewater Wastewater conveyance and treatment in Diamond Bar is provided by the County of Los Angeles Sanitation District No. 21. Although much of the physical sewage infrastructure appears in generally good condition, there have been repeated failures of the pump stations needed to lift flows to the regional collectors. Presently, there are no sewer lines in place in the developed southeastern end of the 1,250-acre development known as the Country Estates. Approximately 144 lots are utilizing on-site wastewater disposal systems. Water Water for City residents is supplied by the Walnut Valley Water District, which receives its water supply from the Three Valleys Municipal Water District and ultimately from the Metropolitan Water District (MWD) of Southern California. Almost all of the water supply is purchased from MWD, which imports water from the Colorado River Aqueduct (a small portion comes from Northern California through the State Water Project). Domestic water supply is not expected to limit development during the planning period. Storm Water Drainage Flood control is provided by the County Flood Control District. Flood control facilities are in fairly good condition. Development proposals are assessed for drainage impacts and required facilities. With these existing facilities and review procedures in place, the City’s flood control system is not expected to limit development during the planning period. Land Costs Land represents one of the most significant components of the cost of new housing. Land values fluctuate with market conditions, and changes in land prices reflect the cyclical nature of the residential real estate market. A major constraint to providing affordable housing on remaining vacant hillside parcels in Diamond Bar is the high cost of construction in hillside areas. Another cost constraint for construction in areas with steep topography is the low ratio of developable area to total land area. Residential projects in hillside areas have large amounts of open space and only about 25-30% developable land. Construction Costs 6.2.a Packet Pg. 245 9-44 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Construction cost is affected by the price of materials, labor, development standards and general market conditions. The City has no influence over materials and labor costs, and the building codes and development standards in Diamond Bar are not substantially different than most other cities in Los Angeles County. Construction costs for materials and labor have increased at a slightly higher pace than the general rate of inflation according to the Construction Industry Research Board. Cost and Availability of Financing Diamond Bar is typical of Southern California communities with regard to private sector home financing programs. As discussed in the previous section, Diamond Bar utilizes tax exempt multi-family revenue bonds which provide a lower interest rate than is available through conventional financing. This program helps to address funding for low-income multi- family projects. Under State law, it is illegal for real estate lending institutions to discriminate against entire neighborhoods in lending practices because of the physical or socio- economic conditions in the area (“redlining”). There is no evidence of redlining being practiced in any area of the City. AFFIRMATIVELY FURTHERING FAIR HOUSING State law prohibits discrimination in the development process or in real property transactions, and it is the City’s policy to uphold the law in this regard. As a participating city in the Los Angeles County Community Development Block Grant (CDBG) program, the City of Diamond Bar has access to services of the Long Beach Fair Housing Foundation for fair housing outreach and education, and counseling on housing discrimination complaints. Program H 14 in Section 9.5 describes additional actions the City will take to affirmatively further fair housing. 6.2.a Packet Pg. 246 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-45 9.0 Figure 9-2 Seismic Hazard Zones 6.2.a Packet Pg. 247 9-46 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Figure 9-3 Fire Hazard Zones 6.2.a Packet Pg. 248 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-47 9.0 9.5 HOUSING ACTION PLAN Sections 9.2 through 9.4 of this Housing Element describe the housing needs, opportunities and constraints in the City of Diamond Bar. This section presents the City's 8-year Housing Action Plan for the 2021-2029 planning period. This Plan sets forth Diamond Bar's goals, policies, and programs to address the identified housing needs of the City. GOALS AND POLICIES It is the overall goal of the plan that there be adequate housing in the City, both in quality and quantity, to provide appropriate shelter for all without discrimination. The goals and policies of the Housing Element presented below address Diamond Bar's identified housing needs and are implemented through a series of housing programs offered through the Community Development Department. Within this overarching goal, the City has established goals and policies to address the development, maintenance and improvement of the housing stock. H-G-1 Preserve and conserve the existing housing stock and maintain property values and residents' quality of life. H-P-1.1 Continue to offer home improvement and rehabilitation assistance to low- and moderate-income households, including seniors and the disabled. H-P-1.2 Continue to facilitate improvement of substandard units in compliance with City codes and improve overall housing conditions in Diamond Bar. H-P-1.3 Promote increased awareness among property owners and residents of the importance of property maintenance to long- term housing quality. H-G-2 Provide opportunities for development of suitable housing to meet the diverse needs of existing and future residents. H-P-2.1 Provide favorable home purchasing options to low- and moderate-income households through County and other homebuyer assistance programs. H-P-2.2 Continue outreach and advertising efforts to make more residents aware of homebuyer assistance programs and to enhance program utilization. H-P-2.3 Maintain affordability controls on government-assisted housing units in the City. 6.2.a Packet Pg. 249 9-48 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 H-P-2.4 Facilitate the development of accessory dwelling units (ADUs) as a means to provide affordable housing opportunities in existing neighborhoods. H-G-3 Provide adequate sites through appropriate land use and zoning designations to accommodate future housing growth. H-P-3.1 Maintain an inventory of potential sites available for future housing development. H-P-3.2 Encourage infill and mixed-use opportunities within the General Plan Focus Areas. H-P-3.3 Coordinate with local colleges and universities to expand the availability of housing for faculty and staff. H-G-4 Mitigate potential governmental constraints which may hinder or discourage housing development in Diamond Bar. H-P-4.1 Continue to provide regulatory incentives and concessions to facilitate affordable housing development in the City. H-P-4.2 Promote the expeditious processing and approval of residential projects that meet General Plan policies and City regulatory requirements. H-P-4.3 Pursuant to the City's Affordable Housing Incentives Ordinance, allow modifications to development standards for projects with an affordable housing component. H-P-4.4 Periodically review City regulations, ordinances, departmental processing procedures and residential fees related to rehabilitation and/or construction to assess their impact on housing costs, and revise as appropriate. H-G-5 Encourage equal and fair housing opportunities for all economic segments of the community. H-P-5.1 Continue to support enforcement of fair housing laws prohibiting arbitrary discrimination in the building, financing, selling or renting of housing on the basis of race, religion, family status, national origin, physical handicap or other such circumstances. H-P-5.2 Refer persons with fair housing complaints to the appropriate agency for investigation and resolution. H-P-5.3 Encourage apartment managers and owners to attend fair housing seminars offered by the Apartment Association of Greater Los Angeles. 6.2.a Packet Pg. 250 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-49 9.0 HOUSING PROGRAMS Housing Element goals and policies are implemented through a series of housing programs described below. Pursuant to §65583 of the Government Code, a city’s housing programs must address the following major areas: • Conserve and improve the condition of the existing supply of affordable housing; • Assist in the development of adequate housing to meet the needs of extremely-low, very-low, low, and moderate-income households; • Provide adequate sites to accommodate the city’s share of the regional housing need for households of each income level; • Remove governmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities; • Promote the creation of accessory dwelling units that can be offered at affordable rents; • Affirmatively furthering fair housing and promote equal housing opportunity • Include a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element. Diamond Bar’s programs for addressing these requirements are described in this section. Conserve and Improve the Condition of Existing Affordable Housing Conserving and improving the condition of the housing stock is an important goal for Diamond Bar. Although the majority of the City's housing stock is in good condition, a significant portion of the housing stock is over 30 years old, the age when most homes begin to require major rehabilitation improvements. By identifying older residential neighbor- hoods for potential housing rehabilitation, the City has taken a proactive approach to maintaining the quality of its current housing stock. The focus neighborhoods identified by this Plan as evidencing physical problem conditions can be specifically targeted for City housing improvement assistance. Program H -1. Residential Neighborhood Improvement Program The City implements a proactive Neighborhood Improvement Program and neighborhood inspections are conducted on a regular basis throughout the entire City. The checklist for residential violations includes inoperable vehicles, trash storage, parking on paved areas only, structure maintenance, landscape maintenance, and fence and wall maintenance. After the neighborhood inspection, letters are sent out to all property owners in areas where violations have been observed. A follow-up inspection will be conducted, at which time any noticed properties found to be in violation of the Municipal Code are subject to a $100 citation. 6.2.a Packet Pg. 251 9-50 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 When problems are observed, inspectors may refer residents to the Home Improvement Program (see Program H-2). Eight-year objective: Continue to implement the code enforcement program, and direct eligible households to available rehabilitation assistance to correct code violations. Provide focused code enforcement and rehabilitation assistance for 5 to 6 households in neighborhoods evidencing concentrations of deteriorating units. Program H -2. Home Improvement Program The City uses CDBG funds for minor home repair through the Home Improvement Program, where low/moderate income householders may receive up to a $20,000 no interest, deferred loan for home repair and rehabilitation. Eight-year objective: Minor repair and rehabilitation for 4 units annually. Program H -3. Section 8 Rental Assistance Program The Section 8 Rental Assistance Program extends rental subsidies to extremely-low- and very-low-income households who spend more than 30% of their gross income on housing. Rental assistance not only addresses housing affordability, but also overcrowding by assisting families that may be "doubling up" in order to afford rent. The Los Angeles County Development Authority coordinates Section 8 rental assistance on behalf of the City. Eight-year objective: Continue to direct eligible households to the County Section 8 program. Program H -4. Preservation of Assisted Housing Diamond Bar contains only one assisted housing project, the 149-unit Seasons Apartments (formerly Heritage Park) for senior citizens. This project was constructed in 1988 and was originally financed under the Los Angeles County Multi-Family Mortgage Revenue Bond program. The project was refinanced in November 1999 under the California Community Development Authority's Multi-Family Housing Re-funding Bond, and was transferred to the Corporate Fund for Housing, a non-profit organization. According to the terms of the new bond agreement, income restrictions for residents and corresponding rent limits were set. For the duration of the bond, which expires December 2, 2034, all units will be affordable: 30 units (20%) will be very-low-income, 82 units (55%) will be low-income, and 37 units will be moderate-income (defined as 100% AMI). Eight-year objective: Preserve 100% of the 149 low- and moderate- income units in the Seasons Apartments. 6.2.a Packet Pg. 252 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-51 9.0 Program H -5. Mobile H ome Park Preservation There are two mobile home parks in Diamond Bar, both located in the western portion of the City: Diamond Bar Estates and Walnut Creek Estates. These mobile home parks were developed before incorporation of the City on land previously designated as Industrial under the County's jurisdiction. The Diamond Bar General Plan Land Use Map adopted in 2019 designated both mobile home parks "residential" in order to preserve their status and prevent future inconsistencies. This designation in the General Plan works to preserve the parks since any proposed land use change would require an amendment to the City's General Plan and Zoning Ordinance, as well as adherence to State mobile home park closure requirements. Eight-year objective: The City will continue to support preservation of its two mobile home parks as important affordable housing resources. Assist in the Development of Affordable Housing To enable more households to attain homeownership in Diamond Bar, the City participates in two mortgage assistance programs: the Homebuyer Assistance Program and the Mortgage Credit Certificate (MCC). These programs are very important given that housing prices in Diamond Bar rank among the highest in eastern Los Angeles County and northern Orange County. The City is also supportive of the development of senior housing to meet the needs of its growing senior population and multi-family rental housing for lower-income households, including working families and university students. Program H -6. First -Time Homebuyer As sistance Programs Los Angeles County offers a first-time homebuyer assistance program and Mortgage Credit Certificates. To be eligible, families must meet the specified income requirements and be able to pay a 1% down payment on their home. The City of Diamond Bar provides referral information to prospective buyers at the public counter and on the City website. 6.a Home Ownership Program (HOP) The Los Angeles County Home Ownership Program (HOP) provides zero- interest loans with no repayment due until the home is sold, transferred, or refinanced. The loan is secured by a second trust deed and a promissory note. The home must be owner-occupied for the life of the loan. 6.b Mortgage Credit Certificate (MCC) The Mortgage Credit Certificate (MCC) program is a federal program that allows qualified first-time homebuyers to take an annual credit against federal income taxes of up to 15% of the annual interest paid on the applicant's mortgage. This enables homebuyers to have more 6.2.a Packet Pg. 253 9-52 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 income available to qualify for a mortgage loan and make the monthly mortgage payments. The value of the MCC must be taken into consideration by the mortgage lender in underwriting the loan and may be used to adjust the borrower's federal income tax withholding. The MCC program has covenant restrictions to ensure the affordability of the participating homes for a period of 15 years. MCCs can be used in conjunction with the Home Ownership Program (HOP). Eight-year objective: The City will advertise these programs and provide information to interested homebuyers. In addition, the City will work with realtors to make them aware of these programs. Program H -7. Senior and Workforce Housing Development With a growing portion of the City's population 65 years of age and above, Diamond Bar will continue to need housing and services for seniors. Particularly those seniors 75 years and older will begin to require housing with a supportive service component. In addition, occupations for which high housing costs make it difficult for working-age households to live in Diamond Bar include teachers, police and firefighters. Several colleges and universities are also located within commuting distance of Diamond Bar. The City will continue to coordinate with these institutions to identify potential partnership opportunities for affordable faculty/staff housing. The City will encourage the development of senior and workforce housing, including units affordable to very-low- and extremely-low-income persons as well as units with 3-4 bedrooms suitable for large families, if feasible, in several ways. First, the City will identify suitable sites for multi-family development in the Housing and Land Use Elements, including zoning to encourage and facilitate lower-cost housing options such as SROs. Second, the City will offer regulatory incentives, and/or direct financial assistance appropriate to the project when feasible. The following are among the types of incentives which may be provided: • Coordination with off-site infrastructure improvements • Flexible development standards • Density bonuses • City support to developers in affordable housing funding applications It must be recognized that the City’s ability to offer direct financial subsidies is limited, particularly in light of current fiscal conditions. The City has no local source of housing assistance funds, and its CDBG revenue is only about $232,000 per year currently (see Section 9.3 for further discussion of the City’s financial resources). Given these financial limitations, the City’s primary efforts to encourage and facilitate affordable housing production are through its land use regulations and staff support to interested developers in applying for grant funds, and cooperation with the Los Angeles County Development Authority (LACDA) on its assistance programs. 6.2.a Packet Pg. 254 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-53 9.0 Pursuant to the City's Affordable Housing Incentives Ordinance, the City provides modified development standards, including parking reductions, for senior and affordable projects. A portion of the City's CDBG funds can be used to help finance senior and workforce housing projects. New housing developments in Diamond Bar may also be eligible for funding sources identified in Section 9.3, Resources and Opportunities. Typically, local assistance can serve as gap financing to bridge the difference between the total project cost and the equity investment plus debt. Eight-year objective: The City will identify sites suitable for new senior and workforce housing and post information on the City website throughout the planning period regarding the City's interest in assisting in the development of senior and workforce housing, provide information on available regulatory and financial incentives, and assist developers in applying for funds. The City will also collaborate with local colleges and universities to identify potential partnership opportunities for affordable housing. The City’s quantified objectives for housing production during the 2021-2029 planning period are described in Table 9-35. Provide Adequate Sites to Accommodate the City’s Share of Regional Housing Need A major element in meeting the housing needs of all segments of the community is the provision of adequate sites for all types, sizes and prices of housing. The City's General Plan, Development Code and specific plans describe where housing may be built, thereby affecting the availability of land for residential development. Specific housing sites are identified in Appendix B. Program H -8. Land Use Element and Development Regulations The City completed a comprehensive update to the General Plan in 2019. The Land Use Element of the General Plan, as discussed previously in Section 9.3, provides for a variety of housing types in Diamond Bar, with densities ranging up to 30 dwelling units per acre. In addition, the new General Plan established several “focus areas” where additional development and redevelopment are encouraged, including multi-family residential and mixed-use. As described in Appendix B, General Plan land use designations provide adequate capacity to accommodate the City’s RHNA allocation at all income levels for the 2021-2029 period. The City is currently processing amendments to the Development Code to align development regulations with new General Plan land use designations. The City shall continue to comply with the “no net loss” provisions of Government Code §65863 through ongoing project-by-project evaluation to ensure that adequate sites are available to accommodate the City’s RHNA share throughout the planning period. The City shall not reduce the allowable density of any site in its residential land inventory, nor approve a 6.2.a Packet Pg. 255 9-54 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 development project at a lower density than assumed in the Housing Element sites inventory, unless both of the following findings are made: a) The reduction is consistent with the adopted General Plan, including the Housing Element; and b) The remaining sites identified in the Housing Element are adequate to accommodate the City’s remaining share of regional housing need pursuant to Government Code §65584. If a reduction in residential density for any parcel would result in the remaining sites in the Housing Element land inventory not being adequate to accommodate the City’s share of the regional housing need pursuant to §65584, the City may reduce the density on that parcel if findings are made identifying sufficient additional, adequate and available sites with an equal or greater residential density so that there is no net loss of residential unit capacity. Eight-year objectives: Maintain adequate sites for housing development at all income levels in conformance with the RHNA and ensure compliance with No Net Loss requirements. Process a Development Code amendment within three years of Housing Element adoption to update land use regulations consistent with the 2040 General Plan. Program H -9. Mixed Use Development The 2040 General Plan encourages mixed-use development in three focus areas, which could provide housing close to transit and places of employment (see additional discussion in Appendix B). The City will encourage property owners and developers to pursue mixed-use development in these focus areas to accommodate a portion of the city’s low- and moderate-income housing needs during this planning period. Mixed-use can also reduce vehicle trips, make more efficient use of land and parking areas, and facilitate energy conservation. Incentives the City may offer to encourage and facilitate redevelopment in these areas include the following: • Coordination with off-site infrastructure improvements) • Flexible development standards • Density bonuses • Support to developers in seeking funding for affordable housing Eight-year objective: The City will prepare a handout and marketing materials encouraging mixed-use development where appropriate and make it available to interested developers throughout the planning period. 6.2.a Packet Pg. 256 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-55 9.0 Program H -10. Accessory Dwelling Units Accessory dwelling units (ADUs) provide an important source of affordable housing for seniors, young adults and other low- and moderate-income households. The City is currently processing an amendment to the Development Code to incorporate recent changes to State ADU law, and will continue to encourage ADU production through public information available at City Hall and on the City website. Eight-year objective: Process a Development Code amendment consistent with current ADU law in 2021 and continue to encourage construction of ADUs through an informational handout available at City Hall and on the City website throughout the planning period. Removing Governmental Constraints to Housing Under current State law, the Housing Element must address, and where legally possible, remove governmental constraints affecting the maintenance, improvement, and development of housing. The following programs are designed to mitigate government constraints on residential development and facilitate the development of a variety of housing. Program H -11. Emergency Shelters, Low Barrier Navigation Centers and Transitional/Supportive Housing Senate Bill 2 of 2007 strengthened planning requirements for emergency shelters and transitional/supportive housing. The Development Code allows emergency shelters by-right in the Light Industry (I) zone in compliance with SB 2 and also allows transitional and supportive housing as a residential use subject to the same standards as other residential uses of the same type in the same zone. In 2018 AB 2162 amended State law to require that supportive housing be a use by-right in zones where multi-family and mixed uses are permitted, including non-residential zones permitting multi-family uses, if the proposed housing development meets specified criteria. AB 101 (2019) added the requirement that low barrier navigation centers meeting specified standards be allowed by-right in areas zoned for mixed use and in non-residential zones permitting multi-family uses pursuant to Government Code §65660 et seq. The City is currently processing a Development Code amendment to allow supportive housing and low barrier navigation centers consistent with State law. The City will also continue to work cooperatively with the Los Angeles Homeless Services Authority and the San Gabriel Valley Council of Governments in its efforts to develop a regional strategy for addressing homelessness. 6.2.a Packet Pg. 257 9-56 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Eight-year objectives: 1. Continue to facilitate emergency shelters and transitional/ supportive housing, and continue participating with LAHSA and SGVCOG on efforts to address homelessness throughout the planning period. 2. Process an amendment to the Development Code in 2021 to allow supportive housing and low barrier navigation centers consistent with State law. Program H -12. Affordable Housing Incentives/Density Bonus To facilitate the development of affordable housing, the City utilizes Affordable Housing Incentives/Density Bonus Provisions (Development Code Chapter 22.18). Incentives described in Chapter 22.18 apply to developments of five or more dwelling units. If a density bonus and/or other incentives cannot be accommodated on a parcel due to strict compliance with the provisions of the Development Code, the Council may waive or modify the development standards as necessary to accommodate bonus units and other incentives to which the development is entitled. AB 2345 of 2020 revised State Density Bonus Law to increase incentives for affordable housing. The City is currently processing an amendment to the Development Code in conformance with AB 2345. Eight-year objective: The City will amend the Development Code in 2021 consistent with current Density Bonus Law and continue to encourage the production of affordable housing through the use of density bonus and other incentives. Program H -13. Efficient Project Processing The City is committed to a streamlined development process and has adopted procedures to facilitate efficient permit processing. Prospective applicants are strongly encouraged to request a pre-application conference with the Community Development Department before formal submittal of an application. The purpose of this conference is to inform the applicant of City requirements as they apply to the proposed development project, review the procedures outlined in the Development Code, explore possible alternatives or modifications, and identify necessary technical studies or other supporting materials relating to the proposed development. This process helps to minimize the time required for project review by identifying issues early in the process before extensive engineering and architectural design work has been done. Eight-year objective: The City will continue to offer the pre-application conference and streamlined development processing, and periodically review departmental processing procedures to ensure efficient project processing. 6.2.a Packet Pg. 258 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-57 9.0 Affirmatively Furthering Fair Housing and Equal Housing Opportunities To adequately meet the housing needs of all segments of the community, the City promotes housing opportunities for all persons regardless of race, religion, gender, family size, marital status, ancestry, national origin, color, age, or physical disability. Program H -14. Affirmatively Furthering Fair Housing As a participating city in the Los Angeles County CDBG program, Diamond Bar has access to the services of the Housing Rights Center for fair housing outreach, education, and counseling on housing discrimination complaints. The City will continue to advertise the fair housing program through placement of fair housing service brochures at the public counter, at the Senior Center, through the City's newsletter, and on the City website. Apartment owners and managers are provided with current information about fair housing issues, rights and responsibilities. The Apartment Association of Greater Los Angeles conducts seminars on State, Federal and local Fair Housing laws and compliance issues. In addition, the City will: • Ensure that all development applications are considered, reviewed, and approved without prejudice to the proposed residents, contingent on the development application’s compliance with all entitlement requirements. • Accommodate persons with disabilities who seek reasonable waiver or modification of land use controls and/or development standards pursuant to procedures and criteria set forth in the applicable development regulations. • Work with the County to implement the regional Analysis of Impediments to Fair Housing Choice and HUD Consolidated Plan. • Facilitate public education and outreach by posting informational flyers on fair housing at public counters, libraries, and on the City’s website. • Conduct public meetings at suitable times, accessible to persons with disabilities, and near public transit. Resources will be invested to provide interpretation and translation services when requested at public meetings when feasible. • Encourage community and stakeholder engagement during development decisions. Eight-year objective: The City will continue to promote fair housing practices, provide educational information on fair housing to the public, and cooperate with the Greater Los Angeles Apartment Association in providing fair housing information to landlords and at libraries, senior centers, recreation centers, and Social Security and employment offices. The City will continue to refer fair housing complaints to the Housing Rights Center. 6.2.a Packet Pg. 259 9-58 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Program H -15. Reasonable Accommodation for Persons with Disabilities State law requires cities to remove constraints or make reasonable accommodations for housing occupied by persons with disabilities. The City will continue to implement adopted procedures for reviewing and approving requests for reasonable housing accommodations pursuant to State law. Eight-year objective: The City will continue to implement reasonable accommodation procedures for persons with disabilities in compliance with State law. Table 9-35: Quantified Objectives 2021-2029, Diamond Bar Income Category Totals Ex. Low V. Low Low Mod Above Mod New constructiona 422 422 434 437 806 2,521 Rehabilitation 5 5 10 20 - 40 Conservationb - 30 82 37 - 149 a Quantified objective for new construction is for the period 7/1/2021 – 10/15/2029 per the RHNA projection period b The Seasons senior apartments 6.2.a Packet Pg. 260 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-59 9.0 Appendix A Evaluation of the Prior Housing Element Section 65588(a) of the Government Code requires that jurisdictions evaluate the effectiveness of the existing Housing Element, the appropriateness of goals, objectives and policies, and the progress in implementing programs for the previous planning period. This appendix summarizes the results of the City’s review of the housing goals, policies, and programs of the previous housing element, and evaluates the degree to which these programs have been implemented during the previous planning period. Table A-1 summarizes the programs contained in the previous Housing Element along with program objectives, timeframe and accomplishments. Table A-2 presents the City’s progress toward the quantified objectives from the previous Housing Element. 6.2.a Packet Pg. 261 9-60 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Table A-1 2013-2021 Housing Element Program Evaluation City of Diamond Bar Housing Program Program Objectives Timeframe Implementation Status 1. Residential Neighborhood Improvement Program Proactive program conducts neighborhood inspections on a regular basis throughout the entire city/focused code enforcement linked with rehabilitation assistance to correct code violations. Ongoing The City continues to operate the code enforcement program. This program is successful and is being continued. 2. Home Improvement Program Improve neighborhoods evidencing deferred maintenance through property maintenance and rehab. Provide minor repair and rehabilitation to 10 units annually. Ongoing The HIP is continued at available funding levels. 3. Single-Family Rehabilitation Program Provide ongoing advertisement of loans available through the County for qualified homeowners. Ongoing The program has been merged with Program 2. 4. Section 8 Rental Assistance Program Direct eligible households to the County Section 8 program. Ongoing The City continues to coordinate with the County on the Section 8 program. The program is being continued. 5. Preservation of Assisted Housing Preserve 100 percent of the 149 low- and moderate- income units in The Seasons Apartments. Ongoing The Seasons Senior Apartments continued its affordability covenant throughout the planning period. This program will be continued. 6. Mobile Home Park Preservation Support preservation of City's two mobile home parks as important affordable housing resources. Maintain residential zoning, and enforce State closure requirements as necessary. Ongoing Zoning for mobile home parks is being continued. No proposals to close the parks were submitted. The program is being continued. 7. First-time Homebuyer Assistance Programs Advertise County's Home Ownership Program (HOP) and Mortgage Credit Certificate (MCC) and provide information to interested homebuyers. In addition, the City will work with realtors to make them aware of these programs. Ongoing Continue to provide information on this County program. The program is being continued. 8. Senior and Workforce Housing Development Identify and evaluate sites suitable for new senior and workforce housing. The City will post information on the City website during the first year of the planning period regarding the City's interest in assisting in the development of senior and workforce housing, provide information on available regulatory and financial incentives, and assist developers in applying for funds. The City will also contact local colleges and universities annually to identify potential partnership opportunities for affordable housing. Ongoing This program is being continued. 9. Land Use Element and Zoning Maintain adequate sites commensurate with the RHNA. Ongoing The City has maintained adequate sites for housing development at all income levels and ensure compliance with No Net Loss requirements. This program is being continued. 10. Mixed Use Development The City will prepare a handout and marketing materials encouraging mixed use development where appropriate and make it available to interested developers during the first year of the planning period. A review of potential areas that may be appropriate for mixed-use development will be initiated by 2015 as part of a comprehensive General Plan update. Ongoing In December 2019, the City adopted the Comprehensive General Plan Update that created community visions and blueprint for growth and development in the City through 2040. This program is being continued. 11. Second Units Continue to encourage construction of accessory dwelling units pursuant to the provisions of its Accessory Dwelling Unit Ordinance, and make an informational handout available for distribution at the public counter. Ongoing On May 2, 2017, the City approved an amendment to the municipal code pertaining to accessory dwelling units to satisfy all of the requirements of Government Code §§65852.150- 65852.2. Per AB 68 (Ting), AB 587 6.2.a Packet Pg. 262 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-61 9.0 Housing Program Program Objectives Timeframe Implementation Status (Friedman), AB 671 (Friedman), AB 881 (Bloom), SB 13 (Wieckowski) that went into effect January 1, 2020. The City has been processing new ADUs in accordance with the new State laws. The City continues to encourage accessory dwelling units and this program is being continued. 12. Emergency Shelters and Transitional/ Supportive Housing Continue to facilitate emergency shelters and transitional/supportive housing, and continue participating in the SGVCOG homeless study to address homelessness. Ongoing This program is being continued. 13. Redevelopment of Underutilized Sites Encourage interested property owners to pursue redevelopment of underutilized properties though the provision of incentives and concessions. Ongoing The City has continued to encourage the redevelopment of underutilized sites. This program is being continued. 14. Affordable Housing Incentives/ Density Bonus Encourage the production of affordable housing through the use of density bonus, and provide a handout summarizing the benefits and requirements of affordable housing incentives/density bonus provisions. Ongoing This program is being continued. 15. Efficient Project Processing Continue to offer streamlined development processing, and periodically review departmental processing procedures to ensure efficient project processing. Ongoing The City continued to offer efficient permit processing. This program is being continued. 16. Fair Housing Program Continue to promote fair housing practices, provide educational information on fair housing to the public, and cooperate with the Greater Los Angeles Apartment Association in providing fair housing information to landlords and at libraries, senior centers, recreation centers, and Social Security and employment offices. Continue to refer fair housing complaints to the San Gabriel Valley and Long Beach Fair Housing Foundation, and maintain an open dialogue with the Foundation regarding the nature of complaints received. Ongoing This program is being continued. 17. Reasonable Accommodation for Persons with Disabilities Continue to implement reasonable accommodation procedures for persons with disabilities in compliance with SB520. Ongoing This program is being continued. 6.2.a Packet Pg. 263 9-62 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Table A-2 Progress in Achieving Quantified Objectives – 2013-2021 City of Diamond Bar Program Category Quantified Objective Progress New Construction Very Low (Ex. Low) 308 (154) 1 (0) Low 182 12 Moderate 190 0 Above Moderate 466 312 Total 1,146 325 Rehabilitation Very Low Low 25 Moderate 25 Above Moderate Total 50 Conservation Very Low 76* 76* Low 82 82 Moderate 37 37 Above Moderate Total 195 195 *46 Section 8 units + 30 senior apartments (The Seasons) 6.2.a Packet Pg. 264 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-63 9.0 Appendix B Residential Sites Inventory The assumptions and methodology for the residential sites inventory are provided below and summarized in Table B-1. Methodology for the Sites Inventory Analysis The residential sites inventory is comprised of four components: 1) approved projects; 2) vacant sites; 3) underutilized (non-vacant) sites with potential for additional residential development or redevelopment; and potential accessory dwelling units (ADUs). Potential sites for residential development during the 2021-2029 planning period are summarized in Table B-1. As shown in this table, adequate capacity is available to accommodate the City’s RHNA allocation in all income categories; however, zoning amendments are required to reconcile development regulations with the recently adopted General Plan (see Program H-8 in Section 9.5). Additional analysis to support this finding is provided in the discussion below and in Tables B-2 through B-6. Table B-1 Residential Sites Summary Site Category Income Category VL Low Mod Above Mod Total Approved projects (Table B-2) 12 12 Vacant sites (Table B-3) 14 14 Underutilized sites (Table B-4) 3 3 6 48 60 Town Center Mixed Use Sites to be Rezoned (Table B-5a) 411 411 Neighborhood Mixed Use Sites to be Rezoned (Table B-5b) 800 500 500 1,094 2,894 Transit-Oriented Mixed Use Sites to be Rezoned (Table B-5c) 400 395 795 Potential ADUs (Table B-6) 15 28 1 20 64 Total sites inventory 1,218 926 918 1,188 4,250 RHNA 2021-2029 842 433 436 805 2,516 Adequate Sites? Yes Yes Yes Yes Yes Source: City of Diamond Bar, 2021 6.2.a Packet Pg. 265 9-64 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Approved Projects Table B-2 summarizes residential developments that have received some form of approval and will become available during the planning period. The income levels for these projects are based upon the expected sales prices or rents. Table B-2 Approved Projects Project / Location Income Category VL Low Mod Above Mod Total Custom homes (Country) 12 12 Total Units 12 12 Source: City of Diamond Bar, 2021 Vacant Sites Table B-3 summarizes vacant sites designated for residential development. These parcels can accommodate a total of 14 dwelling units. Potential income levels for these sites are based on the default density10 provisions of State law. Sites that allow residential or mixed-use development at a density of at least 30 units/acre were assigned to the very-low or low income categories, while sites allowing residential development at a density of 16 to 30 units per acre were assigned to the moderate income category. Sites allowing residential development at less than 16 units per acre were assigned to the above-moderate income category. Underutilized Sites Underutilized sites with potential for additional residential development or redevelopment are listed in Tables B-4 and B-5. The most significant opportunities for additional housing development are within the General Plan Focus Areas (Tables B- 5a through B-5c). Assumptions regarding the income categories for these sites are the same as described above for vacant sites. 10 California Government Code §65583.2(c)(3)(B)(iv) 6.2.a Packet Pg. 266 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-65 9.0 Table B-3 Vacant Sites Inventory Site / Address APN General Plan Zoning Acreage Constraints Realistic Density Potential Units by Income Category Total Units VL/Lo w Mod Abov e Summitridge 8701-013- 902 Low Density Res. RPD- 20,000-2U 1.25 3 du/ac 3 3 End of Fern Hollow 8293-001- 022 Rural Residential RR & RL 21.42 Hillside topography 1 du/ac 11 11 Totals 14 14 Table B-4 Underutilized Sites Inventory Site / Address APN General Plan Zoning Acreag e Constraints Realistic Density Potential Units by Income Category Total Units VL/Lo w Mod Upper 1101 Diamond Bar Blvd. (LDS Church) 8717-031- 006 High Density Residential RM Approx. 4.5 acres Approx. 2 acres developed with church (2 acres vacant) 20 du/ac 4 4 32 40 2335 S. Diamond Bar Blvd. (Diamond Bar United Church of Christ) 8292-009- 004 Medium High Density Residential RM 1.5 Vacant portion of church campus 16 du/ac 2 2 16 20 Totals 6 6 48 60 Notes: Includes only sites not within Focus Areas (Tables B-5a, B-5b and B-5c) 6.2.a Packet Pg. 267 9-66 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Focus Areas. As described in Section 9.4, Constraints, the City adopted a comprehensive General Plan update11 in 2019. One of the key features of the new General Plan was the establishment of several new Focus Areas where substantial land use changes are planned as part of a strategy to provide walkable mixed-use activity centers. These Focus Areas provide opportunities for infill development that can incorporate a range of housing, employment, and recreational uses to meet the needs of families, young people, senior citizens, and residents of all incomes. Three of these Focus Areas, summarized below, are expected to facilitate the development of a significant portion of the City’s RHNA allocation during the planning period. • The Town Center Focus Area, located along Diamond Bar Boulevard between SR-60 and Golden Springs Drive, is intended to build on the success of recent commercial redevelopment in that area. The Town Center is designated for mixed-use development that would serve as a center of activity for residents and provide housing, entertainment and retail opportunities and community gathering spaces in a pleasant, walkable environment. The General Plan establishes a maximum residential density of 20.0 dwelling units per acre for this Focus Area. • The Neighborhood Mixed Use Focus Area is envisioned as a combination of residential and ancillary neighborhood-serving retail and service uses to promote revitalization of the segment of North Diamond Bar Boulevard between the SR-60 interchange and Highland Valley Road. This neighborhood has potential to benefit from its proximity to Mt. San Antonio College and Cal Poly Pomona. This General Plan land use designation has an allowable residential density of up to 30.0 dwelling units per acre. • The Transit-Oriented Mixed Use Focus Area leverages underutilized sites adjacent to the Metrolink commuter rail station to provide for higher-density housing, offices, and supporting commercial uses close to regional transit. This area encourages new employment and housing development in a key location that emphasizes multi-modal transportation options. This General Plan designation allows residential development at a density of 20.0 to 30.0 dwelling units per acre. The 2019 General Plan provides the guiding framework for development in these Focus Areas; however, zoning regulations have not yet been amended to reflect General Plan policy for these areas. The City is currently in the process of updating the Development Code to revise land use regulations for these Focus Areas consistent with the standards established in the new General Plan within three years, pursuant to Government Code §65583(c)(1)(A) (see Program H-8 in Section 9.5). The development assumptions reflected in Tables B-5a through B-5c are based upon the new General Plan land use designations rather than current zoning designations. Since the General Plan designation for these Focus Areas is for mixed use and does not require residential development on every parcel, the capacity for new housing is estimated as 50% of the total allowable number of units in each Focus Area. In addition, parcels smaller than 0.5 acre have been excluded from the potential unit totals pursuant to Government Code §65583.2(c)(2)(A). 11 https://www.diamondbarca.gov/961/General-Plan-2040 6.2.a Packet Pg. 268 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-67 9.0 Table B-5a Town Center Mixed Use Sites to be Rezoned Address APN Existing Zoning Acreage Allowable Density Total Potential Units 23525 GOLDEN SPRINGS DR 8281010047 C-2 0.91 20 18 206 S DIAMOND BAR BLVD 8281010049 C-3 0.54 20 10 218 S DIAMOND BAR BLVD 8281010050 C-3 1.23 20 24 240 S DIAMOND BAR BLVD 8281010051 C-3 2.40 20 47 350 S DIAMOND BAR BLVD 8281010054 C-3 0.56 20 11 300 S DIAMOND BAR BLVD 8281010057 C-3 1.16 20 23 Not assigned 8281010060 C-3 2.16 20 43 324 S DIAMOND BAR BLVD 8281010061 C-3 0.40 20 0 334 S DIAMOND BAR BLVD 8281010062 C-3 0.70 20 14 150 S DIAMOND BAR BLVD 8281024052 C-3 0.86 20 17 23525 PALOMINO DR NO 45E 8281024053 C-2 3.24 20 64 121 S DIAMOND BAR BLVD 8717008001 C-3 0.25 20 0 121 S DIAMOND BAR BLVD 8717008002 C-3 0.16 20 0 141 S DIAMOND BAR BLVD 8717008003 C-3 0.39 20 0 141 S DIAMOND BAR BLVD 8717008004 C-3 0.33 20 0 205 S DIAMOND BAR BLVD 8717008005 C-3 0.46 20 0 205 S DIAMOND BAR BLVD 8717008006 C-3 0.21 20 0 Not assigned 8717008010 C-3 0.06 20 0 249 S DIAMOND BAR BLVD 8717008019 C-3 7.24 20 144 235 S DIAMOND BAR BLVD 8717008020 C-3 0.87 20 17 301 S DIAMOND BAR BLVD 8717008026 C-3 0.18 20 0 301 S DIAMOND BAR BLVD 8717008027 C-3 0.07 20 0 315 S DIAMOND BAR BLVD 8717008028 C-3 0.60 20 12 303 S DIAMOND BAR BLVD 8717008029 C-3 3.96 20 79 23341 GOLDEN SPRINGS DR 8717008032 C-2 0.66 20 13 23347 GOLDEN SPRINGS DR 8717008033 C-2 2.46 20 49 414 S PROSPECTORS RD 8717008034 C-2 1.01 20 20 225 GENTLE SPRINGS LN 8717008038 C-3 0.65 20 13 233 GENTLE SPRINGS LN 8717008039 C-3 0.62 20 12 325 S DIAMOND BAR BLVD 8717008185 C-2 4.20 20 83 379 S DIAMOND BAR BLVD 8717008186 C-2 0.53 20 10 245 GENTLE SPRINGS LN 8717008187 C-3 1.33 20 26 259 GENTLE SPRINGS LN 8717008188 C-3 2.71 20 54 Not assigned 8717008189 C-3 0.96 20 19 Not assigned 8717008902 C-3 0.02 20 0 Not assigned 8717008903 C-3 0.14 20 0 Totals 44.2 822 @50% 411 Notes: 1. Parcels less than 0.5 acre are excluded from unit totals 2. Total capacity estimated as 50% of allowable residential units 6.2.a Packet Pg. 269 9-68 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Table B-5b Neighborhood Mixed Use Sites to be Rezoned Address APN Existing Zoning Acres Allowable Density Potential Units 574 N DIAMOND BAR BLVD 8706001001 OP 0.8 30 23 542 N DIAMOND BAR BLVD 8706001003 OP 0.3 30 0 530 N DIAMOND BAR BLVD 8706001004 OP 0.4 30 0 504 N DIAMOND BAR BLVD 8706001007 OP 0.5 30 0 23425 SUNSET CROSSING RD 8706001008 OP 1.2 30 36 554 N DIAMOND BAR BLVD 8706001013 OP 0.5 30 15 556 N DIAMOND BAR BLVD 8706001014 OP 2.8 30 83 520 N DIAMOND BAR BLVD 8706001015 OP 0.4 30 0 506 N DIAMOND BAR BLVD 8706001016 OP 0.8 30 24 554 N DIAMOND BAR BLVD 8706001800 OP 0.1 30 0 732 N DIAMOND BAR BLVD 8706002012 OP 1.1 30 32 780 N DIAMOND BAR BLVD 8706002015 OP 1.0 30 31 796 N DIAMOND BAR BLVD 8706002016 OP 1.1 30 33 900 N DIAMOND BAR BLVD 8706002021 OP 4.3 30 129 990 N DIAMOND BAR BLVD 8706002022 OP 0.9 30 27 600 N DIAMOND BAR BLVD UNIT 1B 8706002027 OP 5.1 30 154 600 N DIAMOND BAR BLVD UNIT 1A 8706002028 OP 5.1 30 154 612 N DIAMOND BAR BLVD 8706002029 OP 5.1 30 154 618 N DIAMOND BAR BLVD 8706002030 OP 5.1 30 154 620 N DIAMOND BAR BLVD UNIT 4B 8706002031 OP 5.1 30 154 620 N DIAMOND BAR BLVD UNIT 4A 8706002032 OP 5.1 30 154 628 N DIAMOND BAR BLVD UNIT 5A 8706002033 OP 5.1 30 154 628 N DIAMOND BAR BLVD UNIT 5B 8706002034 OP 5.1 30 154 634 N DIAMOND BAR BLVD UNIT 6A 8706002035 OP 5.1 30 154 634 N DIAMOND BAR BLVD UNIT 6B 8706002036 OP 5.1 30 154 640 N DIAMOND BAR BLVD UNIT 7B 8706002037 OP 5.1 30 154 640 N DIAMOND BAR BLVD NO 7A 8706002038 OP 5.1 30 154 646 N DIAMOND BAR BLVD UNIT 8A 8706002039 OP 5.1 30 154 646 N DIAMOND BAR BLVD UNIT 8B 8706002040 OP 5.1 30 154 654 N DIAMOND BAR BLVD UNIT 9B 8706002041 OP 5.1 30 154 654 N DIAMOND BAR BLVD UNIT 9A 8706002042 OP 5.1 30 154 700 N DIAMOND BAR BLVD UNIT 10A 8706002043 OP 5.1 30 154 700 N DIAMOND BAR BLVD UNIT 10B 8706002044 OP 5.1 30 154 706 N DIAMOND BAR BLVD UNIT 11B 8706002045 OP 5.1 30 154 706 N DIAMOND BAR BLVD UNIT 11A 8706002046 OP 5.1 30 154 712 N DIAMOND BAR BLVD UNIT 12A 8706002047 OP 5.1 30 154 712 N DIAMOND BAR BLVD UNIT 12B 8706002048 OP 5.1 30 154 718 N DIAMOND BAR BLVD NO 13B 8706002049 OP 5.1 30 154 718 N DIAMOND BAR BLVD NO 13A 8706002050 OP 5.1 30 154 724 N DIAMOND BAR BLVD 8706002051 OP 5.1 30 154 724 N DIAMOND BAR BLVD 8706002052 OP 5.1 30 154 730 N DIAMOND BAR BLVD 8706002053 OP 5.1 30 154 730 N DIAMOND BAR BLVD 8706002054 OP 5.1 30 154 750 N DIAMOND BAR BLVD 8706002055 OP 2.1 30 63 800 N DIAMOND BAR BLVD 8706002056 OP 5.4 30 161 660 N DIAMOND BAR BLVD. 100 8706002058 OP 1.4 30 43 660 N DIAMOND BAR BLVD 108 8706002059 OP 1.4 30 43 660 N DIAMOND BAR BLVD 118 8706002060 OP 1.4 30 43 660 N DIAMOND BAR BLVD 128 8706002061 OP 1.4 30 43 660 N DIAMOND BAR BLVD 138 8706002062 OP 1.4 30 43 660 N DIAMOND BAR BLVD 168 8706002063 OP 1.4 30 43 660 N DIAMOND BAR BLVD 178 8706002064 OP 1.4 30 43 660 N DIAMOND BAR BLVD 188 8706002065 OP 1.4 30 43 6.2.a Packet Pg. 270 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-69 9.0 Address APN Existing Zoning Acres Allowable Density Potential Units 660 N DIAMOND BAR BLVD 198 8706002066 OP 1.4 30 43 660 N DIAMOND BAR BLVD 200 8706002067 OP 1.4 30 43 660 N DIAMOND BAR BLVD 208 8706002068 OP 1.4 30 43 660 N DIAMOND BAR BLVD 218 8706002069 OP 1.4 30 43 660 N DIAMOND BAR BLVD 228 8706002070 OP 1.4 30 43 660 N DIAMOND BAR BLVD 238 8706002071 OP 1.4 30 43 660 N DIAMOND BAR BLVD 258 8706002072 OP 1.4 30 43 660 N DIAMOND BAR BLVD 268 8706002073 OP 1.4 30 43 660 N DIAMOND BAR BLVD 278 8706002074 OP 1.4 30 43 660 N DIAMOND BAR BLVD 288 8706002075 OP 1.4 30 43 660 N DIAMOND BAR BLVD 298 8706002076 OP 1.4 30 43 Totals 194.5 5,788 @50% 2,894 Notes: 1. Parcels less than 0.5 acre are excluded from unit totals 2. Total capacity estimated as 50% of allowable residential units 6.2.a Packet Pg. 271 9-70 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Table B-5c Transit-Oriented Mixed Use Sites to be Rezoned Address APN Existing Zoning Acres Allowable Density Potential Units 21035 WASHINGTON AVE 8719010009 I: Light Industrial 3.5 30 104 680 BREA CANYON RD 100 8719010023 I: Light Industrial 0.9 30 28 680 BREA CANYON RD 158 8719010024 I: Light Industrial 0.9 30 28 680 BREA CANYON RD 168 8719010025 I: Light Industrial 0.9 30 28 680 BREA CANYON RD 178 8719010026 I: Light Industrial 0.9 30 28 680 BREA CANYON RD 188 8719010027 I: Light Industrial 0.9 30 28 680 BREA CANYON RD 200 8719010028 I: Light Industrial 0.9 30 28 680 BREA CANYON RD 208 8719010029 I: Light Industrial 0.9 30 28 680 BREA CANYON RD 258 8719010030 I: Light Industrial 0.9 30 28 680 BREA CANYON RD 268 8719010031 I: Light Industrial 0.9 30 28 680 BREA CANYON RD 278 8719010032 I: Light Industrial 0.9 30 28 680 BREA CANYON RD 8719010033 I: Light Industrial 0.9 30 28 618 BREA CANYON RD UNIT A 8719010035 I: Light Industrial 1.7 30 50 618 BREA CANYON RD UNIT B 8719010036 I: Light Industrial 1.7 30 50 618 BREA CANYON RD C 8719010037 I: Light Industrial 1.7 30 50 618 BREA CANYON RD D 8719010038 I: Light Industrial 1.7 30 50 618 BREA CANYON RD E 8719010039 I: Light Industrial 1.7 30 50 618 BREA CANYON RD F 8719010040 I: Light Industrial 1.7 30 50 618 BREA CANYON RD G 8719010041 I: Light Industrial 1.7 30 50 618 BREA CANYON RD H 8719010042 I: Light Industrial 1.7 30 50 618 BREA CANYON RD I 8719010043 I: Light Industrial 1.7 30 50 618 BREA CANYON RD J 8719010044 I: Light Industrial 1.7 30 50 655 BREA CANYON RD 8760021005 I: Light Industrial 18.7 30 560 20955 LYCOMING ST 8760027001 I: Light Industrial 1.0 30 30 20955 LYCOMING ST 8760027002 I: Light Industrial 0.4 30 0 780 PINEFALLS AVE 8760027003 I: Light Industrial 0.5 30 0 760 PINEFALLS AVE 8760027004 I: Light Industrial 0.4 30 0 750 PINEFALLS AVE 8760027005 I: Light Industrial 0.6 30 17 755 PINEFALLS AVE 8760027006 I: Light Industrial 0.8 30 23 761 PINEFALLS AVE 8760027007 I: Light Industrial 0.3 30 0 773 PINEFALLS AVE 8760027008 I: Light Industrial 0.1 30 0 773 PINEFALLS AVE 8760027009 I: Light Industrial 0.2 30 0 787 PINEFALLS AVE 8760027010 I: Light Industrial 0.4 30 0 770 PENARTH AVE 8760027011 I: Light Industrial 0.4 30 0 766 PENARTH AVE 8760027012 I: Light Industrial 0.3 30 0 750 PENARTH AVE 8760027013 I: Light Industrial 0.8 30 23 751 PENARTH AVE 8760027014 I: Light Industrial 0.8 30 24 761 PENARTH AVE 8760027015 I: Light Industrial 0.2 30 0 767 PENARTH AVE 8760027016 I: Light Industrial 0.1 30 0 767 PENARTH AVE 8760027017 I: Light Industrial 0.3 30 0 771 PENARTH AVE 8760027018 I: Light Industrial 0.5 30 0 Totals 57.3 1,589 @50% 795 Notes: 1. Parcels less than 0.5 acre are excluded from unit totals 2. Total capacity estimated as 50% of allowable residential units 6.2.a Packet Pg. 272 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-71 9.0 Figure B-1 Sites Inventory Map 6.2.a Packet Pg. 273 9-72 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Figure B-2a Town Center Mixed Use Area Map Source: Figure 3-3: Town Center Mixed-Use Focus Area Concept Illustration; Diamond Bar General Plan 2040 6.2.a Packet Pg. 274 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-73 9.0 Figure B-2b Neighborhood Mixed Use Area Map Source: Figure 3-2: Neighborhood Mixed-Use Focus Area Concept Illustration; Diamond Bar General Plan 2040 6.2.a Packet Pg. 275 9-74 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Figure B-2c Transit-Oriented Mixed Use Area Map Source: Figure 3-4: Transit-Oriented Mixed-Use Focus Area Concept Illustration; Diamond Bar General Plan 2040 6.2.a Packet Pg. 276 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-75 9.0 Potential Accessory Dwelling Units Accessory dwelling units (ADUs) represent a significant opportunity for affordable housing, particularly for single persons or small households including the elderly, college students, young adults, and caregivers. Recent changes in State law have made the construction of ADUs more feasible for homeowners, and the City has seen an increase in ADU development applications recently. Table B-6 shows ADU permit trends during 2017-2020 in Diamond Bar. At the most recent rate of 8 ADUs during 2020, it is estimated that approximately 64 additional ADUs will be permitted during the 2021-2029 planning period. Based on recent analysis conducted by SCAG12 over two-thirds of future ADUs are expected to be affordable to low- and moderate-income households. Table B-6 Accessory Dwelling Units Permitted Year Permits Issued 2017 2 2018 2 2019 6 2020 8 Source: City of Diamond Bar, 2021 12 SCAG, Regional Accessory Dwelling Unit Affordability Analysis, 2020 (https://scag.ca.gov/sites/main/files/file- attachments/adu_affordability_analysis_120120v2.pdf?1606868527) 6.2.a Packet Pg. 277 9-76 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Appendix C Public Participation Summary Public participation is an important component of the planning process, and this update to the Housing Element has provided residents and other interested stakeholders numerous opportunities to provide comments and recommendations. Early in the update process a Housing Element Frequently Asked Questions13 was prepared and posted on the City’s website. Public notice of all Housing Element meetings was provided in advance of each meeting through direct mail as well as posting on the City’s website. The draft Housing Element was made available for review on the City’s website. The draft Housing Element was also made available to housing advocates and non-profit organizations representing the interests of lower- income persons and special needs groups (see Table C-1). After receiving comments on the draft Housing Element from the State Housing and Community Development Department, a proposed final Housing Element was prepared and made available for public review prior to adoption by the City Council. The following is a list of opportunities for public involvement in the preparation of this Housing Element update. Joint Planning Commission/City Council study session January 26, 2021 Planning Commission hearing to review Draft Housing Element March 23, 2021 A list of interested parties that were notified of meetings is provided in Table C-1 and a summary of comments is provided in Table C-2. 13 https://www.diamondbarca.gov/963/Housing-Element-Update 6.2.a Packet Pg. 278 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-77 9.0 Table C-1 Public Notice List Southern California Association of Non Profit Housing 501 Shatto Place, Suite 403 Los Angeles, CA 90020 National Community Renaissance Attn: John Seymour 4322 Piedmont Drive San Diego, CA 92107 LINC Housing Corporation 110 Pine Ave., Suite 500 Long Beach, CA 90802 C & C Development Attn: Barry Cottle 14211 Yorba Street, Suite 200 Tustin, CA 92870 City Ventures Attn: Bill McReynolds 2850 Red Hill Avenue, Suite 200 Santa Ana, CA 92705 Jamboree Housing Corp. Laura Archuleta 17701 Cowan Avenue, Suite 200 Irvine, CA 92614 The Related Companies of California Frank Cardone 18201 Von Karman Ave Ste 900 Irvine, CA 92612 Abode Communities 701 East 3rd Street, Suite 400 Los Angeles, California 90013 Meta Housing 1640 S Sepulveda Blvd. Los Angeles, CA 90025 SOCAL Housing Development Corp 9065 Haven Ave Rancho Cucamonga, CA 91730 Mercy Housing 1500 South Grand Ave., Suite 100 Los Angeles, California 90015 Abundant Housing LA 515 S Flower Street, 18th Floor Los Angeles, CA 90071 Gary Busteed 20850 Gold Run Drive Diamond Bar, CA 91765 Community Development Director City of Brea 1 Civic Center Circle Brea, CA 92821 City of Pomona Community Development Director 505 South Garey Avenue Pomona, California 91766 Brittany Irvin Province Group/Newport Equities LLC 26 Corporate Plaza, Suite 260 Newport Beach, CA 92660 City of Walnut Community Development Director 21201 La Puente Road Walnut, CA 91789 City of La Habra Heights City Manager 1245 North Hacienda Road La Habra Heights, CA 90631 Robert A. Hamilton, President 316 Monrovia Avenue Long Beach, CA 90803 Joann Lombardo City of Chino Hills Com. Dev. Dept. 14000 City Center Dr. Chino Hills, CA 91709 Troy Helling, City Manager City of Industry 15625 East Stafford Street Industry, CA 91744 6.2.a Packet Pg. 279 9-78 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Richard Martinez, Superintendent Pomona Unified School District 800 S. Garey Ave. Pomona, CA 91766 Richard Macedo, Branch Chief CA Department of Fish & Wildlife Habitat Conservation Planning 1416 Ninth Street, 12th Floor Sacramento, CA 95814 Ed Pert, Regional Manager California Dept. of Fish & Wildlife South Coast Region 5 3883 Ruffin Rd. San Diego, CA 92123 Fish and Wildlife Biologist U.S. Fish and Wildlife Service 2177 Salk Ave., Suite 250 Carlsbad, CA 92008 State Clearinghouse P.O. Box 3044 Sacramento, CA 95814 Colonel Kirk E. Gibbs, 61st Commander US Army Corps of Engs. LA District 915 Wilshire Blvd Los Angeles, CA 90017 Lijn Sun, Program Supervisor SCAQMD Intergovernmental Review 21855 Copley Dr. Diamond Bar, CA 91765-4182 Michael Y. Takeshita, Acting Chief Los Angeles County Fire Department - Forestry Div 1320 N. Eastern Los Angeles, CA 90063-3294 Alfred Reyes, Captain Los Angeles County Sheriff Dept 21695 Valley Boulevard Walnut, CA 91789 Deborah Smith, Executive Officer Regional Water Quality Control Bd Los Angeles Region 320 W. 4th Street, Suite 200 Los Angeles, CA 90013-2343 John Andres Southern California Gas Company 9400 Oakland Avenue Chatsworth, CA 91311 Alex Villanueva, Sheriff Los Angeles County Sheriff Department 4700 Ramona Boulevard Monterey Park, CA 91754 Erik Hitchman, General Manager Walnut Valley Water District 271 South Brea Canyon Road Walnut, CA 91789 San Bernardino County Planning Department County Government Center 385 North Arrowhead Ave San Bernardino, CA 92415 Anthony Nyivih LA County Department of Public Works Land Development Division P.O. Box 1460 Alhambra, CA 91802-2460 Mark Pestrella, Director Los Angeles County Department of Public Works 900 S. Fremont Avenue Alhambra, CA 91803 Pui Ching Ho, Library Manager Los Angeles County Public Library Diamond Bar Branch 21800 Copley Dr Diamond Bar, CA 91765 Amy J. Bodek, Director County of Los Angeles Department of Regional Planning 320 W. Temple St, 13th Floor Los Angeles, CA 90012 Jared Dever, District Manager San Gabriel Valley Mosquito & Vector Control District 1145 N. Azusa Canyon Road West Covina, CA 91790 Miya Edmonson California Dept. of Transportation District 7 – Env Planning 100 S. Main Street Los Angeles, CA 90012 Robert C. Ferrante, Chief Eng County Sanitation Districts of Los Angeles County 1955 Workman Mill Road Whittier, CA 90607-4998 Robert Taylor Walnut Valley Unified School Dist. 880 S. Lemon Street Walnut, CA 91789 Metropolitan Water Dist. of So. Calif Attention: Environmental Planning 700 N. Alameda St. Los Angeles, CA 90012 Marisa Creter, Executive Director San Gabriel Valley Council of Gov. 1000 S. Fremont Avenue #42 Alhambra, CA 91803 Kome Ajise Exec. Director of So. California Association of Governments 900 Wilshire Blvd. #1700 Los Angeles, CA 90017 Daniel J. Johnson, Interim AVP Facilities Planning Cal Poly Pomona 3801 W Temple Ave, Bldg 81 Pomona, CA 91768 Eileen Sobeck, Executive Director State Water Quality Control Board 1001 I Street P.O. Box 100 Sacramento, CA 95814 6.2.a Packet Pg. 280 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-79 9.0 Battalion Commander Los Angeles County Fire Station 120-Battalion 1051 S. Grand Avenue Diamond Bar, CA 91765-2210 Skye Patrick County Library Director LA County Library 7400 E. Imperial Highway Downey, CA 90242 County of Los Angeles Department of Parks and Rec Alina Bokde, Deputy Director 1000 S. Fremont Ave, Unit #40 Alhambra, CA 91803 Anita D. Gutierrez, AICP Acting Dev Services Director City of Pomona - Dev Svcs. 505 South Garey Avenue Pomona, CA 91766 Metro Development Review Los Angeles County Metropolitan Transp. Authority One Gateway Plaza, MS 99-22-1 Los Angeles, CA 90012-2952 Julianne Polanco, SHPO Calif. Dept. of Parks & Recreation Office of Historic Preservation 1725 23rd Street, Suite 100 Sacramento, CA 95816 Tom Weiner Director of Community Dev City of Walnut 21201 La Puente Road Walnut, CA 91789 Salvador Flores Southern California Edison 2 Innovation Way Pomona, CA 91768 Southern California Gas Co Centralized Correspondence PO Box 3150 San Dimas, CA 91773 David Perez Valley Vista Services, Inc. 17445 E Railroad Street City of Industry, CA 91748 Steven D. Lowry Southern California Edison Co Real Prop, Title & Real Estate Svcs 2131 Walnut Grove Blvd. 2nd Fl Rosemead, CA 91770-3769 Southern California Edison Co. Local Governmental Affairs – Land Use/Environmental Coord 2244 Walnut Grove Avenue Rosemead, CA 91770 Grace P. Brandt Department of Conservation 5816 Corporate Ave #100 Cypress, CA 90630 Orange County Planning & Development Department P.O. Box 4048 Santa Ana, CA 92703 Rowland Heights Community Coordinating Council P.O. Box 8171 Rowland Heights, CA 91748 Three Valleys Municipal Water District 1021 E Miramar Ave Claremont, CA 91711 Douglas Bassett Spectrum Cable Company 4781 Irwindale Avenue Irwindale, CA 91706 Asia Powell Frontier Communications 510 Park Ave. San Fernando, CA 91340 Gary Nellesen, Director Facilities Planning & Mgmt Mt. San Antonio College 1100 N. Grand Ave Walnut, CA 91789 Teri G. Muse Public Sector Solutions Rep Waste Mgmt San Gabriel/Pomona 13940 E. Live Oak Avenue Baldwin Park, CA 91706 Claire Schlotterbeck, Exec Dir Hills for Everyone P.O. Box 9835 Brea, CA 92822-1835 Gabrieleno Band of Mission Indians- Kizh Nation Andrew Salas, Chairperson P.O. Box 393 Covina, CA 91723 La City/County Native American Indian Comm. 3175 West 6th St Los Angeles, CA 90020 San Gabriel Band of Mission Indians Anthony Morales, Chief P.O. Box 693 San Gabriel, CA 91778 California Native American Heritage Commission 1550 Harbor Blvd, Suite 100 West Sacramento, CA 95691 Gabrielino-Tongva Tribe Charles Alvarez 23454 Vanowen Street West Hills, CA, 91307 Gabrielino-Tongva Tribe Linda Candelaria, Co-Chairperson 23453 Vanowen St West Hills, CA 91307 6.2.a Packet Pg. 281 9-80 HOUSING ELEMENT 2021-2029 │ Diamond Bar General Plan 2040 Gabrielino Tongva Nation Sandonne Goad, Chairperson 106 1/2 Judge John Aiso St, #231 Los Angeles, CA 90012 Pauma Band of Luiseno Indians – Pauma & Yuima Reservation Temet Aguilar, Chairperson PO Box 369 Pauma Valley, CA 92061 Gabrielino Tongva Indians of California Tribal Council Robert F. Dorame, Chairperson P.O. Box 490 Bellflower, CA 90707 San Fernando Band of Mission Indians Donna Yocum, Chairperson P.O. Box 221838 Newhall, CA, 91322 Soboba Band of Luiseno Indians Joseph Ontiveros Cultural Resource Director PO Box 487 San Jacinto, CA 92581 Torres Martinez Desert Cahuilla Indians Michael Mirelez, Cultural Res Co PO Box 1160 Thermal, CA 92274 Douglas Barcon 23535 Palomino Dr #545 Diamond Bar, CA 91765 Diamond Bar – Pomona Valley Sierra Club Task Force 324 S. Diamond Bar Blvd. #230 Diamond Bar, CA 91765 Janet Cobb & Angela Moskow CA Wildlife Foundation/CA Oaks 428 13th Street, #10A Oakland, CA 94612 6.2.a Packet Pg. 282 HOUSING ELEMENT Diamond Bar General Plan 2040 │ HOUSING ELEMENT 2021-2029 9-81 9.0 Table C-2 Summary of Public Comments and Responses 6.2.a Packet Pg. 283 MINUTES OF THE CITY OF DIAMOND BAR MEETING OF THE PLANNING COMMISSION MARCH 23, 2021 CONSISTENT WITH THE GOVERNOR’S LATEST EXECUTIVE ORDER TO STAY AT HOME, AVOID GATHERINGS, AND MAINTAIN SOCIAL DISTANCING, THIS MEETING WAS CONDUCTED TELEPHONICALLY AND PLANNING COMMISSIONERS, CITY STAFF, AND MEMBERS OF THE PUBLIC PARTICIPATED VIA TELECONFERENCE. CALL TO ORDER: Chair/Mok called the meeting to order at 6:30 p.m. PLEDGE OF ALLEGIANCE: Commissioner Garg led the Pledge of Allegiance. 1. ROLL CALL: Commissioners: Naila Barlas, Mahendra Garg, Raymond Wolfe, Vice Chairman William Rawlings and Chairman Kenneth Mok. Staff participating telephonically: Greg Gubman, Community Development Director; James Eggart, Assistant City Attorney; Grace Lee, Senior Planner; Mayuko (May) Nakajima, Associate Planner; Joy Tsai, Associate Planner; Stella Marquez, Administrative Coordinator 2. REORGANIZATION OF PLANNING COMMISSION – Selection of Chairperson and Vice Chairperson. Chair/Mok nominated Commissioner Rawlings to serve as Chairperson of the Planning Commission. Commissioner Barlas seconded the nomination. With no other nominations offered, Commissioner Rawlings was unanimously elected to serve as Chairperson of the Planning Commission by the following Roll Call vote: Barlas Yes Garg Yes Wolfe Yes Rawlings Yes Mok Yes Chair/Rawlings thanked C/Mok for his leadership during the past year. Commissioner Barlas nominated Commissioner Wolfe to serve as Vice Chairperson who respectfully declined the nomination and nominated Commissioner Garg to serve as Vice Chairperson. Commissioner Mok seconded the nomination. With no other nominations offered, Commissioner Garg was unanimously elected to serve as Vice Chairperson of the Planning Commission by the following Roll Call vote: Barlas Yes 6.2.b Packet Pg. 284 ________________________________________________________________________ MARCH 23, 2021 PAGE 2 PLANNING COMMISSION ________________________________________________________________________ Garg Yes Wolfe Yes Rawlings Yes Mok Yes 3. PUBLIC COMMENTS: None Offered. 4. APPROVAL OF AGENDA: As presented. 5. CONSENT CALENDAR: 5.1 Minutes of the Regular Planning Commission Meeting of February 23, 2021. C/Wolfe moved, C/Mok seconded, to approve the meeting minutes of February 23rd, 2021, as presented. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Wolfe, Mok, Chair/Rawlings NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: Barlas, VC/Garg 5. OLD BUSINESS: None 7. NEW BUSINESS: 7.1 General Plan Status Report 2020: SP/Lee presented staff’s report and recommend that the Planning Commission approve the General Plan Status Report for 2020 and forward it to the City Council to Receive and File. C/Wolfe complimented staff on a very thorough General Plan Status Report. He asked if the City has been monitoring SB1 regarding duplexes and subdivision maps, which seeks to make them ministerial, meaning that local control will be superseded and disrupt community identity (land use, public facilities, open space and hillsides, community character and Placemaking chapters) as the City will not have the authority to regulate the addition of dwelling units in existing single family residential neighborhoods, which will increase pressure on first responder services, utilities and traffic congestion. Cut-through traffic remains a huge issue for Diamond Bar and as pointed out by the Responsible Land Use group, the southern part of the town adjacent to the Industry Metrolink station is already severely impacted, as well as are the main thoroughfares of Grand Avenue and Golden Springs Drive. C/Wolfe corrected Responsible Land Use’s statement that limitations to train 6.2.b Packet Pg. 285 ________________________________________________________________________ MARCH 23, 2021 PAGE 3 PLANNING COMMISSION ________________________________________________________________________ operations on the Riverside Metrolink line serving the Industry station would require an additional track; however, due to the growing freight demand in the region, there are no slots available for more frequent passenger service s on that line, which does impact the ongoing TOD conversation in that vicinity. Chair/Rawlings thanked staff for a very informative report that contains helpful information for the community. He was pleasantly surprised to see the branding efforts in conjunction with the SR57/60 Confluence project he believes will prove to be a good Placemaker landmark of activities along with other projects called out in the report. Chair/Rawlings asked for public comments. Paul Deibel echoed C/Wolfe’s comment that this is an excellent overview of the efforts the City has undertaken and the report answered a number of questions he had regarding the improvements to the SR57/60 interchange including interesting comments about detours that will take place during construction. He appreciates the reference to NPDES and permits issued to the City that entail monitoring of City businesses that might have an adverse impact on the environment as a result of their discharges into the soil or into gutters, etc., and wondered if the results would be relayed to the public. Finally, Mr. Deibel asked if there would be opportunities available for local participation/comment on options for Placemaking in the primary focus area. Chair/Rawlings closed public comments. C/Mok moved, VC/Garg seconded, to approve the General Plan Status Report 2020 and forward the report to the City Council to Receive and File. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Barlas, Wolfe, Mok, VC/Garg, Chair/Rawlings NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: None 7.2 2021-2029 Housing Element Update: CDD/Gubman gave opening remarks and John Douglas, Housing Element consultant, JHD Planning, LLC, presented staff’s report and recommended that the Planning Commission receive public comments and offer questions, discussion and direction to staff in preparing a revised Housing Development for review by the City Council. C/Mok asked if the 2521 RHNA units were new construction or if the number 6.2.b Packet Pg. 286 ________________________________________________________________________ MARCH 23, 2021 PAGE 4 PLANNING COMMISSION ________________________________________________________________________ included infill and use of buildings and facilities that are currently underused. Mr. Douglas responded that there is very little vacant residential land left in the City and the vast majority of the units listed in the Housing Element to accommodate the RHNA are referred to as underutilized where there is some building or use on properties today and in order to produce housing there would be a redevelopment of the property or housing units built in some portion of the property such as a non-essential parking lot. C/Mok asked how churches could be approached to offer their properties for this purpose. Mr. Douglas explained that the Housing Element which is part of the City’s General Plan, is a fairly high-level policy document and does not include every single action that might be necessary to bring a project to fruition. The focus of the Housing Element is to identify the parcels where housing could be built based on the City’s plans and regulations what kinds of actions the City would take in order to try to encourage development to happen such as adopting density bonus regulations that would provide incentives for property owners to build housing to accomplish the goals that are set forth in the Housing Element. CDD/Gubman stated that the City would not be the developer of these housing units but would facilitate development through its zoning regulations. For example, rather than property owners initiating rezoning, the City might propose to rezone the two churches at a residential density level to incentivize the development. Most church properties are currently residentially zoned and some are already at higher density in the site inventory. For example, half of the Diamond Bar United Church of Christ property is vacant land offering an opportunity for housing, the LDS property north of the Big Lots renovated building has a large undeveloped piece of land on its property , and Calvary Chapel has a large opportunity for repurposing some of its acreage for more housing. While those properties are not significant contributors toward reaching the City’s RHNA goals, the more significant push will be to establish zoning for the General Plan’s Mixed-Use Districts with higher density being described in the General Plan is where Diamond Bar would ask HCD to accept those designations, thus enabling the City to proceed with the zoning to make that land available. Once the zoning is implemented, the City has complied with its part of the RHNA process by creating zoning that would then facilitate developers to come in and develop the properties. VC/Garg asked if the church properties could be mixed use as well. CDD/Gubman said that by virtue of two uses on one property it becomes small “m” mixed use and the named Mixed-Use Districts are a more conventional classification of residential on top of or behind commercial storefronts. Chair/Rawlings asked if it is common practice to update the Development 6.2.b Packet Pg. 287 ________________________________________________________________________ MARCH 23, 2021 PAGE 5 PLANNING COMMISSION ________________________________________________________________________ Code and does the state respond well to that. Mr. Douglas explained that it is fairly common practice, particularly in this Housing Element cycle because the RHNA numbers are such that many cities will have to look at rezoning in order to accommodate the RHNA, and state law explicitly allows cities up to three years to do the rezoning. Fortunately for Diamond Bar, much of that work has already gone into this through the General Plan Update process that culminated in late 2019. It is important for the Commission and public to realize that the zoning changes being discussed in the Hou sing Element are simply changes that have already been anticipated as part of the General Plan Update process. When the City finally adopted the General Plan, it was recognized that the new General Plan created changes to land use designations that created inconsistencies between those and the old zoning and the normal course of events is for the City to adopt the new General Plan and then follow that with amendments to the detailed zoning and development regulations in order to bring everything back into consistency. Chair/Rawlings asked that the letter from Responsible Land Use be entered into the record and opened public comments. Lee Paulsen, President, Responsible Land Use, said he takes no issue with the number of units in the TOD area and understands that those houses have to go somewhere and he would like for the City to facilitate or restart a conversation about what it will take to make Mixed-Use areas work. RLU supports the work that staff and the consultants have done and understands the tough task of getting this to pass HCD. At the same time, residents are looking for solutions that will actually make the City better and more livable. The possibility of having a Mixed-Use area in that location brings forth wonderful possibilities of adding units and providing a neighborhood meeting place or destination for the entire neighborhood. Paul Deibel commented that he is very much in favor of the articles of the Housing Element, particularly with respect to increasing the potential for affordable housing in the community to accommodate growing families, pensioners and essential workers with a cradle to grave mindset. He is excited by the potential of a vibrant Mixed-Use pedestrian-oriented commercial center in Diamond Bar, which he thinks would be great for the identity community to the function of the community for affordable housing and for economic development that would bring in customers from surrounding areas. He was curious about the timeline for zoning changes and believed the City should consider additional incentives for affordable housing development beyond state stipulated density bonus requirements such as inclusionary zoning provisions for the provision of affordable housing in most housing projects or fees in-lieu of affordable housing and asked if there was tax increment financing available for affordable housing and whether an agency could be 6.2.b Packet Pg. 288 ________________________________________________________________________ MARCH 23, 2021 PAGE 6 PLANNING COMMISSION ________________________________________________________________________ formed in the City to establish bonds or other mechanisms as well as, inclusionary zoning with in lieu fees to finance affordable housing. Grace Lim-Hayes also affirmed that it makes sense to consider Mixed-Use in developments as the solution to housing challenges for the future and the present. As a resident in the TOD, it will be a challenges to include the high - density units (795) in the area, but it is feasible with a lot of imagination and a lot of creativity with special consideration of traffic congestion. It will take a lot of creativity and imagination to make sure all issues are properly addressed to create housing units that provide parking, walkable areas with connections services and recreation. RLU is not seeking to challenge or prevent rezoning of the area, but wants to make sure it is understood that those challenges need to be met with a lot of imagination and conversation among all stakeholders in the community inclusive of the homeowner associations and mobile homeowners who live nearby. Chair/Rawlings closed public comments. Chair/Rawlings said he recalls hearing some of these same comments during the General Plan Update hearings and the hearing regarding the development of the Hampton Inn Hotel/Office Suite Project and assured speakers that they were heard then and have been heard this evening. C/Wolfe thanked staff for putting together a very detailed report outlining the demographics and statistical comparisons that will be important to guiding the conversation for the next eight years. The state has a severe housing crisis which has been brought about by many factors. Currently, there is no legislation that has been introduced in this session to effectively assist in curtailing the issue even though this has been identified by the administration as its top priority which is unfortunate, because planning is critical. The reality is that the housing supply will continue to be dictated by investors who, without real incentives, remain focused on market demand. The cost to develop housing in California is high and climbing with increasing regulations, which is not an indictment, but simply a statement of fact. Finally, the City has a plan for the state-imposed RHNA numbers and the City will struggle to meet the Vehicle Miles Traveled (VMT) requirements and the existing traffic congestion, not to mention the additional traffic congestion that will be created. These issues need to be in the forefront of any discussi ons surrounding new development because the City simply does not have the transit infrastructure to serve the community and it cannot ignore the fact that development will bring more cars. C/Mok agreed with C/Wolfe and with Lee Paulson and Grace Lim-Hayes about the TOD area which currently suffers from significant traffic but could, with 6.2.b Packet Pg. 289 ________________________________________________________________________ MARCH 23, 2021 PAGE 7 PLANNING COMMISSION ________________________________________________________________________ creative thinking and prudent planning, become a very vibrant, active and attractive area for Mixed-Use as a great place for people to live and for commuters to enjoy. He thanked speakers for their input. VC/Garg said he concurred with C/Wolfe and C/Mok and to him, this looks like a very good plan that should comply with all of the comments and help make Diamond Bar a better place to live, work and play. Chair/Rawlings said that he also believes there is a lot of potential for these areas and in particular, the TOD area and that the City needs to be able to address some of the underlying issues voiced by Mr. Paulson and Ms. Lim - Hayes. He asked if there were items within the Housing Element th at could address some of the concerns stated by RLU because he recalls much of the discussion during the General Plan Update process about adjusting specific language to help address those concerns. During the Public Hearing for the Hampton Inn/Business Center project, traffic engineers that spoke had some pretty clear ideas on how to improve the Level of Service for the traffic in th e area. Adding the TOD element and recognizing the RLU concerns, is the Housing Element the place those concerns would be addressed or are these concerns addressed as the City gets into the Development Code or Site Specific plans. CDD/Gubman responded to Chair/Rawlings that the updated General Plan has all of the new land-use districts and residential densities allowed in those districts and the policies that would be guiding the implementation of building out those areas. The Housing Element is part of the General Plan. It is not synched with the rest of the General Plan because t here is a statutory timeframe for the lifespan of each Housing Element update. In the context of the overall General Plan, staff is seeking to get HCD’s acceptance that the City’s housing potential/development potential at buildout in these Mixed -Use Districts would achieve our RHNA goals as far as creating the zoning to facilitate the development, whether or not t hat development occurs. And the City must implement projects through Zoning and/or Specific Plans and other ordinances to bring up the City’s density bonus regulations and other regulations in conformance with updated state laws. The City needs to begin the Specific Plans for those three Mixed-Use Districts as it is currently preparing the budget for the next Fiscal Year which requires making decisions about appropriating funds to begin those Specific Plan Update processes. As SP/Lee mentioned in the General Plan Status Report, there is grant money that would help defray the costs of doing those Specific Plans which consist of high level content and requires a major effort in itself. Site specific land planning will be challenging and of the three Mixed-Use Districts, the TOD area will be the hardest and something that requires cooperation with other agencies to meet the challenges that go beyond what is envisioned for that 6.2.b Packet Pg. 290 ________________________________________________________________________ MARCH 23, 2021 PAGE 8 PLANNING COMMISSION ________________________________________________________________________ area. The next step is to commence that process with the first exploratory step being the ULI exercise during the week of April 12 th where experts will be brought in to do a deep dive into the opportunities and constraints for the Town Center area and to tell staff what can be realistically aimed for when the City embarks on the Specific Plan process. If that turns out to be a successful exercise and provides the City with good guidance for implementing the Town Center Goals, Objectives and Policies, ULI may be brought back to help with a similar deep dive for the TOD area. ULI has the knowledge about infrastructure district financing and other tools that can be used to incentivize economically feasible development of structured parking, for example, because there is no more room for surface parking and land is too expensive for that and they can tell the City if and how structured parking is feasible which will be one of the variables to allow for enough density and how other potential funding sources like the San Gabriel Valley Regional Housing Trust can be put in place to help defray some of the costs. Mr. Douglas said that he heard concerns regarding transportation, congestion, etc. The General Plan is intended to work as an integrated whole and the Circulation Element of the General Plan includes polic ies and programs to address those specific issues. He encouraged everyone to look at the whole, which includes the Land Use Element and the Circulation Element , as well as the Housing Element. The Planning Commission concurred to direct staff to take the updated draft document with public and Commission comments to the City Council. 8. PUBLIC HEARING(S): None 9. PLANNING COMMISSION COMMENTS/INFORMATIONAL ITEMS: C/Mok encouraged residents to frequent local eateries. 10. STAFF COMMENTS/INFORMATIONAL ITEMS: CDD/Gubman congratulated Chair Rawlings and Vice Chair Garg on their appointments. CDD/Gubman said there were no agenda items scheduled for April 13 th which is the week ULI will deploy the Technical Advisory Panel. There will be a joint Planning Commission/City Council GoToWebinar meeting on Friday, April 16th to allow ULI to present their findings and recommendations. The public will be invited to attend and individual stakeholders within the area will receive meeting notices as well. CDD/Gubman stated that Mr. Deibel would receive a call from the ULI panel asking him if he would participate in a stakeholder interview. The next regular Commission 6.2.b Packet Pg. 291 ________________________________________________________________________ MARCH 23, 2021 PAGE 9 PLANNING COMMISSION ________________________________________________________________________ meeting is scheduled for April 27th. 11. SCHEDULE OF FUTURE EVENTS: As listed in the agenda. ADJOURNMENT: With no further business before the Planning Commission, Chair/Rawlings adjourned the regular meeting at 8:27 p.m. to the Joint April 16th meeting with City Council. The foregoing minutes are hereby approved this ____________________________, 2021. Attest: Respectfully Submitted, _______________________________________ Greg Gubman, Community Development Director _______________________________ William Rawlings, Chairperson 6.2.b Packet Pg. 292 6.2.c Packet Pg. 293 6.2.c Packet Pg. 294 6.2.c Packet Pg. 295 6.2.c Packet Pg. 296 6.2.c Packet Pg. 297 6.2.c Packet Pg. 298 6.2.c Packet Pg. 299 6.2.c Packet Pg. 300 6.2.c Packet Pg. 301 6.2.c Packet Pg. 302 6.2.c Packet Pg. 303 1 Kristina Santana From:Mike Ramirez <insurancemarketinggroup@ymail.com> Sent:Friday, April 2, 2021 7:16 AM To:Kristina Santana Subject:Possible Spam: “FOR PUBLIC COMMENT.” Attachments:2021-golf-sponsorship-letter-3.jpg; 2021-golf-sponsorship-form-4 (1).jpg CAUTION: This message originated outside of our City of Diamond Bar network.  Hello, My name is Michael Ramirez, Tournament Chair for the Diamond Bar Community Foundation. I would like to make an announcement for our 10 Anniversary Golfing "FORE" the kids, Golf Tournament. Attached is the a copy of my announcement and flyer. Best Regards, Michael Ramirez / Broker/Agent insurancemarketinggroup@ymail.com To help protect yMicrosoft Office pautomatic downlopicture from the In su ran ce Marke Insurance Marketing Group Office: (281) 968-3240 / Cell: (949) 842-5937 http://ushagent.com/michaelramirez Health, Accident, Disability, Critical Illness, Dental, Life, https://card.get-card.com/michael-ramirez/ 1 Kristina Santana From:Pui-Ching Ho <PCHo@library.lacounty.gov> Sent:Tuesday, April 6, 2021 12:39 PM To:Kristina Santana Subject:FOR PUBLIC COMMENT CAUTION: This message originated outside of our City of Diamond Bar network.  This is Pui‐Ching Ho from Diamond Bar Library.  I'm wondering if you would please make the following  announcement at the 4/6/2021 City Council Meeting during the public comment?  Thanks!    "We are almost back!  We are excited to announce that the LA County Library will start reopening designated  libraries for select in‐person services on Monday, April 19, 2021.  Diamond Bar Library is one of the designated  libraries.    Library customers can browse the collection, pickup holds, checkout items and use the public computer for up  to 1 hour per customer.    We are committed to keeping our customers and staff safe during our in-person service hours. We ask that all library customers maintain 6‐feet of physical distance from other customers and  library staff, when in line and inside the library; wear a face covering over mouth and nose at all  times; adhere to posted library capacity limits; make your visit to your library quick and efficient; and  do not bring food or drink into the library.   Starting April 19, 2021, the Sidewalk Pickup service will be available on Monday, Wednesday, Thursday and Friday from 10am to 11am, and on Tuesday from 12pm to 1pm. The in-person services will be available on Monday, Wednesday, Thursday and Friday from 11am to 6pm, and on Tuesday from 1pm to 8pm. For more information, please visit: https://lacountylibrary.org/reopening/" Thank you!    PUI CHING HO | COMMUNITY LIBRARY MANAGER  LA County Library | Diamond Bar Library  21800 Copley Dr, Diamond Bar, CA 91765  P: 909.861.4978  LACountyLibrary.org | @LACountyLibrary    To help protect your priv acy, Microsoft Office prevented automatic download of this picture from the Internet.LA County Library Logo   1 Kristina Santana From:Katherine Madarazo <katherinemadarazo@gmail.com> Sent:Tuesday, April 6, 2021 4:15 PM To:Kristina Santana; Kristina Santana Subject:Public Comment Attachments:KatherineComments.docx CAUTION: This message originated outside of our City of Diamond Bar network.  Hello Kristina,     How are you? Attached is my public comments for tonight's meeting. I wish to read it, if it's possible. Thank you so much  for everything you do.       Regards,   Katherine Madarazo  April 06, 2021 Diamond Bar City Council Meeting RE: Road Widening Impacts, Golf Course Project Public Comments Honarable Madam Mayor and City Councilmembers, My name is Katherine Madarazo and I am a Diamond Bar resident. I thank you for the opportunity to speak to you tonight. I wish to comment on the current construction, road-widening project located at the corner of Grand Ave., and Golden Springs where the Diamond Bar Golf Course is. As our city is progressively developed, please do not forget the negative impacts of development on our natural resources. I understand this project was planned and approved in June 2020, with the Lead Agency being San Gabriel Valley Council of Governments. Yet, the project is at the city border, and is an important buffer to freeway traffic. I expect Diamond Bar City Council has a responsibility to monitor and guide best practices for projects impacting the city. The environmental plan in the IS/MND documents is not working to protect the wildlife, like birds, which nest in the trees during this season. I saw Cooper hawks and other birds being disrupted and distressed by the construction. Spring is nesting season. Birds are impacted by tree removal and pruning. I did not read in the documents, how wildlife birds may be helped or conserved during construction It appears the city does nothing to assure the preservation of its natural resources. So I implore the council to change and take a measurable stance on authentic conservation. Many residents think the multi-million dollar road widening project is a waste of taxpayer money and a temporary fix, since it is certain to add increased traffic. The transportation company, Fehr & Peers, teaches road widening increases traffic congestion. (1) This project appears the road widening is purposed to accommodate City of Industry’s new warehouse trucking center. I ask the council to monitor this active construction project and discover what is being done to mitigate wildlife disruption and the restoration of the 29 native trees which were impacted. Will you please report back to me about the status of the matter? We must assure conservation is prioritized. Diamond Bar natural resources make our community a very special place to live. Respectfully, Katherine Madarazo (909) 401- 0776 Katherinemadarazo@gmail.com Reference: 1) Closing the Induced Vehicle Travel Gap Between Research and Practice Ronald T. Milam, Marc Birnbaum, Chris Ganson, ... January 1, 2017 Several studies have rigorously documented the induced travel effect, in which added highway capacity leads to added vehicle travel. Despite the evidence, transportation planning practice does not fully account for this phenomenon, with the result that estimates of the potential congestion-reducing benefits of added highway capacity may be overstated and estimates of potential environmental impacts understated. https://journals.sagepub.com/doi/10.3141/2653-02 1 Kristina Santana From:JC_Heartsonics <johncatanzaro@mindspring.com> Sent:Saturday, April 3, 2021 5:28 PM To:Kristina Santana Cc:Kristina Santana; Kristina Santana Subject:LAD-41 Letter for April 6th city coundil meeting Attachments:DbarCiryCouncilLtr2.docx CAUTION: This message originated outside of our City of Diamond Bar network.  Hi Kristina, I'm John Catanzaro, President of Ridgeline HOA in Diamond Bar. I wrote a letter that was read at the beginning of the City Council meeting on March 16th (agenda 5.1 I believe?). I would ask that the following correspondence also be read into the record on the April 6th meeting at the appropriate place on the agenda. It is a follow up to the progress by our local HOA's and some concerns that I feel would be helpful to the dialogue on the current circumstances before us. I appreciate your support of this request. Please confirm receipt of this letter and that it will be read into the record by you, hopefully at the start! Thank you very much, John Catanzaro ============================================================================== == Subject: LAD -41 Date: Apr 3, 2021 2:49 PM Honorable mayor and members of the city council of Diamond Bar, This is the second time I am addressing you regarding the matter of the dissolution of LAD-41. In the past several weeks since the meetings on March 16th and subsequently on March 18th, the four HOA's in this district (of which I'm president for Ridgeline) have been meeting a number of times online via zoom. As is usually the case when united by a common cause, new friendships are forged and synergy is expanded in powerful ways. We stand together where before by default we were just neighbors in passing, each occupied with our own concerns. In a sense I am appreciative for this part of the circumstance that has brought us together in unity and strength. We find that there is much more that unites rather than divides us, and although we do not seek an adversarial situation, we find ourselves having to respond in a timely manner to distressing circumstances knowing full well the consequences, (both expected and unintended) that will befall our members if this does not go forward in a positive situation with a YES vote! Just as you are doing what you feel you must do, so we are also likewise engaged in communicating with our members via email and walking our communities and having in-person contact and putting up signage and doing everything possible to communicate the message of the significance of the 2 decision that is coming up in a month. Our HOA's are doing the best we can to prepare for the possible outcomes and will be meeting with the city staff as well as arborists and landscapers to seek out bids so that we have more accurate information as regards the cost involved. But a lot of that will be impacted by the engineers report which we are still anticipating. We are not equipped or set up to do this on such a massive scale; nevertheless we will not be alone in bearing the consequences of these actions. As I said in my previous communication, cities and governments exist to serve those who live within them; it is a mutual understanding of responsibility for the care of the property that falls on all of us. No person or entity will be exempt from the impact of the results. Simply turning over the responsibility to individuals and local volunteer HOA boards will have overwhelming concerns far and wide and extend long into the future in ways that we cannot anticipate. We exist in a society based on mutual trust and support and although we acknowledge that because of the city's decision to subsidize the landscaping over these many years through the general fund, we are now suffering the shortcomings of that action and it is not for us to bear alone, for it will also potentially impact how you operate going forward. Future city councils and HOA boards will have to work with the outcomes of the judgements we make here in this place and time. Since your decision to dissolve LAD-41 appears to be final, we ask that you continue to extend every support possible to the citizens who you represent and serve in good faith. What you are turning over to us is a massive ongoing undertaking with a potential annual cost running in the thousands of dollars individually and/or collectively, as each of the 4 HOA boards fully recognizes. The freedom to vote, to be responsibly informed, and to understand the issues can be a complicated and difficult thing for some people to comprehend until the full force and impact of the result lands on their doorstep. This has cast a new light of understanding and commitment of the work that the municipal agency has been doing over these past years and we intend for that to continue being the responsibility of the city through our mutual support and pledge to impress upon our members the importance of voting YES on the change in the prop 218 property tax fee increase for district 41. Thank you again for your time and attention to our mutual concerns John Catanzaro, President Ridgeline Homeowners Association Diamond Bar, CA April 3, 2021 1 Kristina Santana From:David Takeda <dtco@hotmail.com> Sent:Tuesday, April 6, 2021 2:09 PM To:Kristina Santana Subject:FOR PUBLIC COMMENT Attachments:Diamond Bar City Council - Landscape Dissolution.docx CAUTION: This message originated outside of our City of Diamond Bar network.  Dear Sir ‐ Attached is my letter that I hope will be read during tonight's City Council meeting (April 6,  2021).  Thank you in advance for forwarding my letter to the appropriate party.    Sincerely,    David Takeda      Diamond Bar City Council    Dear Council Members,    My name is David Takeda.  I moved to Diamond Bar in 1976 and my current address, since October  1986, is 1302 Summitridge Dr.  I have seen our city grow from a small community to a fairly large city.   The many City Councils that we’ve had over the years have, for the most part, done a great job keeping  our city beautiful and a great place to live.  I haven’t always agreed with some of the policies, but I’ve  managed to live with them.  Until now.  I am against the Landscape Assessment District Dissolution.  I’ll be the first to admit that I probably ignored the early communications but now I am concerned that  we must rethink the decision.  I’ve been told that the City Council has not yet signed off on the plan and  that there will be another public hearing in early May.  After the two Informational Meetings on March  18 for Districts 39 and 41, I believe that there is still much confusion.  Residents with hillsides/slopes  abutting their properties which have been maintained by the city are not sure what their new  responsibilities might or might not be.  Residents who live next to or close to certain corners which the  city  has maintained are not sure who will now be responsible.  I could go on and on and your standard  response seems to be to “call us with an exact location and we’ll advise you of your  options/responsibilities – one of which might be to form a mini HOA.”  My hope is that the Dissolution can be delayed until the residents of Diamond Bar are more fully  informed of the consequences of dissolution.  I, for one, voted to approve the increased assessment,  and I will vote for approval again even though my little corner of the world (1302) has never required  the city’s help in maintaining my landscape.  I can only hope that the majority of the residents can see  the benefit of having the city continue to maintain the two districts and keep Diamond Bar beautiful.  Thank You,  David Takeda                  1 Kristina Santana From:Garret Rukes <grukes@martinezsteel.com> Sent:Tuesday, April 6, 2021 4:11 PM To:Kristina Santana Subject:FOR PUBLIC COMMENT - Intent to dissolve landscape assessment district 39 CAUTION: This message originated outside of our City of Diamond Bar network.  The suggestion to dissolve the Landscape Assessment District 39 in hopes that individual property owners will maintain  the landscape (that is typically separated from properties by walls and/or fences) is not a workable solution.  Property  owners cannot be expected to maintain these parcels of property that the city has maintained since conception, and the  landscape will deteriorate to the point that our city’s property values will fall.  The property owners have already paid  for the existing landscape and irrigation from the many years of property tax subsidies, but there is no way to tie into  the existing irrigation that has already been paid for, and the parcels in question cannot typically be accessed from the  property owner’s properties.     Is anything being done to come up with a better solution?     Regards,    Garret Rukes  1505 Longview Drive