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HomeMy WebLinkAbout03/20/2007 City Council Agenda Report 6.8Agenda 4 6.8 MeetingDate: DIAMOND BAR II MY COUNCILI! _�'�AGENDA REPORT TO: Honorable Mayor and Members of the City Council FROM: James DeStefano, City Manr TITLE: Draft Fiscal Impact Analysis of th Proposed Aera Energy Development Project RECOMMENDATION: Receive and file draft document. FINANCIAL IMPLICATION: The draft report indicates that the Aera Energy development proposal as it is presently described incorporating several assumptions will result in over $1 million of annual net revenue to the City. BACKGROUND: Aera Energy LLC, the Property Owner and Developer, owns approximately 2,935 acres of land immediately south of the City's municipal boundary. For the past 100 years this land has been operated as a working oil field. The oil field is nearing the end of its useful life and the property owner has proposed a development project to replace the oil operations. For a considerable amount of time, the Property Owner has been in discussion with the Counties of Orange and Los Angeles regarding the processing of land use entitlements in order to develop housing and related uses over approximately fifty percent of the 2,935 acres. Recent discussions between the City staff and Developer have identified potential areas of mutual benefit associated with the annexation of a portion of the 2,935 acres into the City of Diamond Bar. Area Energy is now requesting the City process entitlements for a portion of the total acreage (1,940 acres) including annexation into the City. The remaining Aera acreage, approximately 995 acres, will be considered for development entitlements by the counties of Los Angeles and Orange. The City engaged the services of Keyser Marston Associates Inc. (KMA) to perform a financial review of the Aera Energy proposal for development and annexation to the City. As part of the KMA study, certain assumptions were built into the analysis including the percent of the developed property held in private control and that acreage to be owned and maintained (such as roadways and park land) by the public. The study, originally prepared in December 2006, and recently updated, is considered a "Draft" as the assumptions built into the KMA analysis will continue to be revised as land uses are clarified and public / private ownership and maintenance related responsibilities become apparent. FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT 3/7/2007 W@ Numbers and analysis not final; Should not be relied on. EXHIBIT A ANNUAL GENERAL FUND IMPACTS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT 3/712007 Genera! Fund Net Revenues $5,000,000 $4,5D0,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 ElExpenses ❑ Revenues Numbers and analysis not final; Prepared by: Keyser Marston Associates, Inc. Should not be relied on. Filename: 11630.0011DIamondBafFiscal_3 7 07.x1s; 3172007; EXHIBIT B COMPOSITION OF ANNUAL REVENUES AND EXPENSES AERA MASTER PLAN COMMUNITY CITY GENERAL FUND REVENUES Total Revenues: $4,301,000 Million Gas Tax 3% Property Transfer Tax 5% Sales Tax 10% Property Tax 35% :his. Tax 3% Prepared by: Kayser Marston Associates, Inc. Filename: 11630.001 /DemondaarFisaal_3 7 07 .1st 3/7/2007; g CITY GENERAL FUND EXPENSES Total Expenses: $3,109,000 Million Public Works 13% Administration & Support 9% Community Services 9% WORKING DRAFT 3/7/2007 Legislative 1% Replacement Reserves& Community Insurance )evelopment-\ , r 2% 3% J Safety / Police 63% DRAFT Numbers and analysis not final; Should not be relied on. Motor Vehicle '. License Fees 44% Prepared by: Kayser Marston Associates, Inc. Filename: 11630.001 /DemondaarFisaal_3 7 07 .1st 3/7/2007; g CITY GENERAL FUND EXPENSES Total Expenses: $3,109,000 Million Public Works 13% Administration & Support 9% Community Services 9% WORKING DRAFT 3/7/2007 Legislative 1% Replacement Reserves& Community Insurance )evelopment-\ , r 2% 3% J Safety / Police 63% DRAFT Numbers and analysis not final; Should not be relied on. Table 7 PROJECT DESCRIPTION FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT 3/7/2007 RESIDENTIAL MARKET RATE Single Family Detached Single Family Attached AFFORDABLE (Deed Restricted) Single Family Detached Single Family Attached Apartments TOTAL RESIDENTIAL COMMERCIAL In -Line Shops Supermarket Restaurants Cinema Office Total Community Shopping Center INFRASTRUCTURE TO BE MAINTAINED BY GENERAL FUND 15% of Park Entry Road Brea Canyon Road to Golf Course entry Golf Course entry to County line INFRASTRUCTURE TO BE PRIVATELY OWNED AND MAINTAINED 85% of Park' Open Space Interior Streets Storm Drain System DEVELOPMENT PROGRAM 2,200 Units 600 Units 2,800 Units 0 Units 0 Units 0 Units 0 Units 2,800 Units 72,000 SF 52,000 SF 16,000 SF 50,000 SF 10,000 SF 200,000 SF 6.75 ac 218,000 sf 4,600 linear ft 353,800 sf 8,000 linear ft 360,000 sf 9,000 linear ft 38.25 ac n/a n/a n/a INFRASTRUCTURE TO BE MAINTAINED BY LANDSCAPING AND LIGHTING DISTRICT Street Lights n/a Landscaped Medians n/a Notes: ' Aera estimates 45 acres of parks will be required based on the development program; 85% will be built within the gated portion of the community and 15% will be maintained by the City. Source: Aera 11.16.2006 Prepared by: Keyser Marson Associates, Inc. CRAFT Filename: 11630.001/DiamondBarFiscal_3707.xls; 3/7/2007; jj Numbers and analysis not final; Should not be relied on. Table 1a SUMMARY OF PROPOSED FUNDING OF MAINTENANCE / OPERATING COSTS FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR. CA WORKING DRAFT 3/7/2007 Landscape & Fire General Lighting Protection Water Fund HOA District District District Total Legislative 100% Administration & Support 100% Community Development / Planning 100% Equipment Replacement & Insurance 100% Base Community Services / Recreation 100% On -Site Park 15% On -Site Open Space Base Public Works 100% Public Roads (Inc[. roadway, sidewalks, curbs, 100% gutters, signs, signals) Interior Streets (incl. roadway, sidewalks, curbs, gutters, signs, signals) Drainage / Stormwater System - Public Roads 100% Drainage / Stormwater System - Interior Streets Street Lights - Public Roads Street Lights - Interior Streets Landscaped Areas - Public Roads Landscaped Areas - Interior Streets Water and Sewer Public Safety / Police 100% Fire Prepared by Keyser Marston Associates, Inc. Filename: 11630.0G11Dlamond3arRscai_3 7 07.x1s; 3/7/2007; jj 85% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% DRAFT Numbers and analysis not final; Should not be relied on. Table 2 ANNUAL GENERAL FUND IMPACT: FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT 3/7/2007 ANNUAL GENERAL FUND REVENUE / % OF EXPENSE AT BUILDOUT TOTAL RECURRING GENERAL FUND AND PUBLIC WORKS FUND REVENUES Motor Vehicle License Fees $1,875,000 44% Property Tax $1,514,000 35% Sales Tax $434,000 10% Property Transfer Tax $198,000 5% Gas Tax $148,000 3% Franchise Tax $132,000 3% TOTAL $4,301,000 100% RECURRING GENERAL FUND AND PUBLIC WORKS FUND EXPENSES' Public Safety / Police $1,952,000 63% Community Services $291,000 9% Administration & Support $284,000 9% Public Works $406,000 13% Community Development $85,000 3% Legislative $44,000 1% Replacement Reserves & Insurance $47,000 2% TOTAL $3,109,000 NET ANNUAL GENERAL AND PUBLIC WORKS FUND $1,192,000 REVENUE (EXPENSE) Notes: ' Excludes expenses to maintain parks and roads within gated portions of the community; fire expenses covered through fire service district. DR1118-iFT Numbers and analysis not final; Should not be relied on. Prepared by: Keyser Marston Associates, Inc. Filename: 11630.001 /DiamondearFiscal_3 7 07.x1s; 3/7/2007; jj Table 3 EXISTING POPULATION AND EMPLOYMENT FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT 3/712007 RESIDENT DAY&NIGHTTIME POPULATION' EMPLOYMENT' EQUIVALENTS POPULATION 0.35 peremployee 1.00 per resident CITY OF DIAMOND BAR 59,722 19,431 66,523 79,153 Notes: ' State of California, Department of Finance, E-1 City/County Population Estimates, with Annual Percent Change, January 1, 2005 and 2006. Sacramento, California, May 2006. 111/06 Estimate. ' Clantas 2006 ] Population plus employment. un Numbers and analysis not final; Should not be relied on. Prepared by: Keyser Marston Associates, Inc. Filename: 11630.001/DiamcndBarFiscal_3 7 07 As. 317/2007; jj Table 4 POPULATION AND EMPLOYMENT ESTIMATES FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA RESIDENTIAL MARKET RATE Single Family Detached Single Family Attached AFFORDABLE (Deed Restricted) Single Family Detached Single Family Attached Apartments COMMERCIAL Community Shopping Center WORKING DRAFT 3/7/2007 POPULATION DAY & UNIT OR RESIDENT NIGHTTIME 2 BASIS SIZE' EMPLOYMENT EQUIVALENTS POPULATION TOTAL 9,135 9,460 Population 8,960 Employment 500 Notes: ' Per Aera. 11.16.2006. ' Total population plus employment. 3 Based on the average household size for the Aera project in Yorba Linda, CA per Aare 11.13.2006 and equal to the average household size for owner occupied units in Diamond Bar per the 2000 U.S. Census. Prepared by. Keyser Marston Associates, Inc. Di Filename: 11630.001/DiamondBarFiscal 3 7 07.xls; 3/712007; jj F Numbers and analysis not final; Should not be relied on. 1.00 household size: 3 per resident 2,200 DU 3,300 SF 3.20 7,040 7,040 7,040 600 DU 2,000 SF 3.20 920 1,920 1 920 2,800 DU 8,960 8,960 8,960 0 DU 3.20 0 0 0 0 DU 3.20 0 0 0 0 DU 3.20 0 0 0 0 DU 0 0 0 employment 0.35 density per 1,000: per employee 200,000 Sq. Ft. 2.50 500 175 500 TOTAL 9,135 9,460 Population 8,960 Employment 500 Notes: ' Per Aera. 11.16.2006. ' Total population plus employment. 3 Based on the average household size for the Aera project in Yorba Linda, CA per Aare 11.13.2006 and equal to the average household size for owner occupied units in Diamond Bar per the 2000 U.S. Census. Prepared by. Keyser Marston Associates, Inc. Di Filename: 11630.001/DiamondBarFiscal 3 7 07.xls; 3/712007; jj F Numbers and analysis not final; Should not be relied on. Table 5 - A GENERAL FUND REVENUE SOURCE ASSUMPTIONS FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR. CA DRAFT Numbers and analysis not final; Should not be relied on. WORKING DRAFT Property Taxes 1 5.1917418% City share of 1 % property tax, based on AV. Property Transfer Tax 2 $0.55 Per $1,000 of AV at transfer Turnover Residential - Market rate 12.50% Assumed Annually Residential -Affordable 6.25% Assumed Annually Sales Tax, City's Portion 3 1% Local Share of Sales Tax $4,842 Taxable Sales Per Resident Gas Tax $985,750 Revenues in 2006/07 59,722 Residents $16.51 Per Resident Motor Vehicle License Fees ° $3,398,067 Property Tax Based Revenues for 2004-05 $5,446,642,517 2004-05 Diamond Bar gross AV $0.624 Per $1,000 in AV growth $370,000 Population Based Revenues for 2006-07 59,722 Residents $6.20 Per Resident Franchise Tax $960,000 Revenues for 2006-07 66,523 Resident Equivalents $14.43 Per Resident Equivalent Notes: ' Based on tax rate area ratios in neighboring parcels within the City of Diamond Bar (see Appendix C - 1). ' Calculated on turnover of residential units, based on rate per Diamond Bar City Code. Commercial property assumed to be subject to extensive hold periods. ' See Appendix tables D - 1 to D - 3. ' Estimated in accordance with SB 1096 based on data from the California State Controller's Office. Only property tax based revenues have been included, Health and Welfare Reallignment MVLF is driven by case loads and is treated as a cost recovery revenue deducted from net Health and Sanitation and Public Assistance Costs. Source: City of Diamond Bar, Budget for the Fiscal Year 2006-2007 (See Appendix A - 1 and A - 2). Prepared by: Keyser Marston Associates, Inc. Filename: 11630.001\DiamondBarFiscal_3 7 07.xls; 3/7/2007; jj Table 5 - B ANNUAL GENERAL FUND REVENUES FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA GENERAL FUND REVENUES PROPERTY TAX (City Share) PROPERTY TRANSFER TAX' Residential - Market Rate Residential - Affordable Subtotal SALES TAX (1% local share) MOTOR VEHICLE LICENSE FEES Assessed value based revenue Papulation based revenue Subtotal GAS TAX FRANCHISE TAX WORKING DRAFT 3/7/2007 TOTAL AT BASIS MEASURE' BUILDOUT 2,916,000 AV added ($000s) 5.1917418% of 1% prop tax $1,514,000 2,874,000 AV added ($000s) $0.55/$1,000 AV, 12.50% turnover $198,000 0 AV added ($000s) $0.55/$1,000 AV, 6.25% turnover L0 $198,000 8,960 residents $4,842 per resident $434,000 2,916,000 AV added ($000s) $0.624 per $1,000 in AV $1,819,000 8,960 residents $6.20 per resident $56,000 $1,875,000 8,960 residents $16.51 per resident $148,000 9,135 resident equivalents $14.43 per resident equiv. $132,000 TOTAL GENERAL FUND REVENUES $4,301,000 Notes: 'Calculated based an turnover of residential units. Commercial property assumed to be subject to extensive hold periods. 3 See Table 5 - A. Prepared by: Keyser Marston Associates, Inc. Filename: 11630.001 /DiamondBarFscal_3 7 07.x1s; 3!7/2007; jJ Dfl�i�yjj �'� r Numbers and analysis not final; Should not be relied on. Table 5 - C SUMMARY OF ANNUAL GENERAL FUND REVENUES FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT 3/712007 RECURRING GENERAL FUND REVENUES Property Tax Property Transfer Tax Sales Tax Motor Vehicle License Fees Gas Tax Franchise Tax Prepared by: Keyser Marston Associates, Inc. Filename: 111330.001/DlamondBarFIscaI_3 7 07 xls: 3/7/2007: jj TOTAL REVENUES AT BUILDOUT $1,514,000 $198,000 $434,000 $1,875,000 $148,000 $132,000 1,000 Numbers and analysis not final; Should not be relied on. Table 6 - A GENERAL FUND OPERATING EXPENSES ASSUMPTIONS' FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT 3/7/2007 Legislative Administration & Support Public Safety / Police Fire Community Development Community Services Public Works Replacement Reserves & Insurance Notes: ' For City service departments. 2 Assumes 1 employee = 0.35 residents (see Table 3). $1,272,740 Expenses in 2006/07 25% Percent Variable Costs 66,523 Resident Equivalents 3 $4.78 Per Resident Equivalent $4,140,735 Expenses in 2006107 50% Percent Variable Costs 66,523 Resident Equivalents 2 $31.12 Per Resident Equivalent $1,859,017 Estimated by LASD s 5% Annual increase from 2005/06 $1,952,000 Estimated for 2006107 Service provided by the Consolidated Fire Protection District of Los Angeles County $1,241,180 Expenses in 2006/07 50% Percent Variable Costs 66,523 Resident Equivalents 2 $9.33 Per Resident Equivalent $2,859,670 Expenses in 2006107 50% Percent Variable Costs 59,722 Residents $23.94 Per Resident 6.75 Park Acres 4 294,030 Park Square Footage $1,474,610 Expenses in 2006107 50% Percent Variable Costs 66,523 Resident Equivalents z $11.08 Per Resident Equivalent $343,350 Expenses in 2006/07 100% Percent Variable Costs 66,523 Resident Equivalents 2 $5.16 Per Resident Equivalent ' Police services in Diamond Bar are contracted to the Los Angeles County Sheriffs Department (LASD). The cost to serve the project has been estimated by LASD based on the cost of 1 crime patrol car and 1 traffic patrol car 24 hours per day 7 days a week and 1 motorcycle officer 40 hours per week (without relief). Adjusted upwards by KMA by 5% from 2005106 to 20061D7 costs consistent wdh estimates In the City's budget and typical annual increases noted by LASD. ' Park acres to be maintained by City are 15% of the total 45 park acres in the project, per Aera 11.16.2006 (see Table 1). Source: City of Diamond Bar, Budget for the Fiscal Year 2006-2007 (See Appendix A - 1 and A - 2). Prepared by: Keyser Marston Associates, Inc. s• 1 j i Filename: 11630.001/DiamondBarFlscai_3 7 07.xlk; 3/7/2007; j) Numbers and analysis not final; Should not be relied on. InNIT. ANNUAL GENERAL FUND EXPENSES FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA GENERAL FUND EXPENSES Legislative Administration & Support Public Safety / Police Community Development Community Services Base Community Services (per Budget) Additional Park Area Total Community Services Public Works Base Public Works (per Budget) Additional Entry Road a Total Public Works Replacement Reserves & Insurance WORKING DRAFT 3/7/2007 TOTAL AT BASIS MEASURE' BUILDOUT 9,135 resident equivalents $4.78 per resident equiv. 9,135 resident equivalents $31.12 per resident equiv. Estimated by LASD' 9,135 resident equivalents $9.33 per resident equiv 8,960 residents $23.94 per resident 294,030 square feet $0.26 per square foot 2 9,135 resident equivalents $11.08 per resident equiv. 9,135 resident equivalents $5.16 per resident equiv. $44,000 $284,000 $1,952,000 $85,000 $215,000 $76,00 $291,000 $101,000 $305,000 $406,000 $47,000 TOTAL GENERAL FUND EXPENSES $3,109,000 Notes: ' See Table 6 - A. Assumes 50% active and 50% passive park; at $0.22 and $0.30 per square foot, respectively, per City staff. See Table 6 - C. Prepared by: Keyser Marston Associates, Inc. Filename: 11630.001 /Diamond Barl'iscal_3 7 07.xis, 3/7/2007: jj r��o Numbers and analysis not final; Should not be relied on. Table 6 - C ADDITIONAL PUBLIC ROAD MAINTENANCE COSTS FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT 3%71/2007 TOTAL AT BASIS MEASURE BUILDOUT $0.20 per square foot Brea Canyon Golf Course per linear foot 3 $3,024 $624 Public Entry Rd. to Golf Entry to per square foot' $6,026 Street Maintenance Cost Detail ' Rd. Course Entry County Line Total $29,970 Roadway 218,000 353,800 360,000 931,800 square feet 2 Pavement Delineation 4,600 8,000 9,000 21,600 linear feet 2 Traffic Signals 5 n/a n/a 5 number 4 Signage 218.000 353.800 360,000 931,800 square feet Curb and Gutter Repair 4,600 8,000 9,000 21,600 linear feet z Sidewalk 43,600 75,200 81,000 199,800 square feet 5 Drainage System 218,000 353,800 360,000 931,800 square feet TOTAL GENERAL FUND EXPENSES Per Square Foot CLARIFICATIONS NEEDED: Signage amount/oost per unit Sidewalk square footage Review all $0.20 per square foot $186,360 $0.14 per linear foot 3 $3,024 $624 per signal $3,120 $0.01 per square foot' $6,026 $1.00 per linear foot 3 $21,600 $0.15 per square foot 3 $29,970 $0.06 per square foot $54,976 $305,077 $0.33 Notes: ' Except landscaping and street lighting, assumed to be maintained by landscaping and lighting assessment distract. ' Per Aera: 11.16.2006 for Public Entry Rd., 3.1.2007 for Brea Canyon Rd. and Golf Course entry to County line. ' Estimated based on KMA experience in other similar projects. 4 Per City staff for Public Entry Rd.: one 4 -way interior signalized intersection, one traffic light at Brea Canyon and Highway 57. No info given for Brea Canyon/Golf Course to County line. 5 For Public Entry Rd., estimated based on sidewalk area at 20% of street surface area, per KMA experience in similar projects. Per Aare 3.1.2007 for Brea CanyoNGotf Course to County line. Prepared by: Keyser Marston Associates, Inc. Filename: 11630.00ADiamondBarFiscal_3 7 07.xls: 317/2007: jj Numbers and analysis not final; Should not be relied on. Table 6 - D SUMMARY OF ANNUAL GENERAL FUND EXPENSES FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT 3/7/2007 RECURRING GENERAL FUND EXPENDITURES Legislative Administration & Support Public Safety / Police Community Development Community Services Public Works Replacement Reserves & Insurance Prepared by: Keyser Marston Associates, Inc. Filename: 11630.001UamondBarFiscal_3 7 0Txls; 317/2007; jj TOTAL EXPENSES AT BUILDOUT $44,000 $284,000 $1,952,000 $85,000 $291,000 $406,000 $47,000 109,000 Numbers and analysis not final; Should not be relied on. APPENDIX A: GENERAL FUND ANALYSIS INPUTS WORKING DRAFT Appendix A - 1 SUMMARY OF GENERAL FUND REVENUE SOURCES' FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, Cf WORKING DRAFT f AMOUNTS NET BUDGET DEDUCTED FROM AFTER 2006-07 SERVICE COSTS DEDUCTIONS COMMENTS I ASSUMPTIONS REVENUES INCLUDED IN ANALYSIS Property Taxes Property Taxes - HOX Sales Taxes Franchise Tax Property Transfer Tax VLF VLF - Property Tax in Lieu Transfer in from Gas Tax Fund Subtotal $3,315,000 $0 $3,315,000 Projected based on development program $30,000 $0 $30,000 Projected based on development program $4,000,000 $0 $4,000,000 Based on new retail, residents, expenditure patterns $960,000 $0 $960,000 Projected based on resident equivalents (electric, gas, cable) $425,000 $0 $425,000 Projected based on homes values, assumed turnover rate $370,000 $0 $370,000 Projected based on residents $3,868,000 $0 $3,868,000 Projected based on increases in Assessed Valuation 985,750 $0 $985,750 Projected based on residents. assumes transferred to the $617,500 $617,500 $0 General Fund par current budget $13,953,750 $0 $13,953,750 Planning Fees REVENUES DEDUCTED FROM SERVICE COSTS ANALYSIS Fines & Forfeitures Transient Occupancy Tax $700,000 Vehicle Code Fines $390,000 $390.000 $0 Law Enforcement Program Revenue General Fines $22,000 $22,000 $0 Law Enforcement Program Revenue Municipal Code Fines $500 $500 $0 Law Enforcement Program Revenue Parking Fines $165,000 $165,000 $0 Law Enforcement Program Revenue Vehicle Impound Fees $15,000 $15,000 $0 Law Enforcement Program Revenue False Alarm Fees $25,000 $2100 LO Fire Program Revenue Subtotal $617,500 $617,500 $0 Building Permit Fees $750400 $750,400 $0 Buiming a Safety Program Revenue Planning Fees $410000 $410,000 $0 Community Developme l/Planning Program Revenue Engineering Fees $967,000 $967.000 $0 Engineering Program Revenue Recreation Fees $676,385 $676,385 $0 Recreation Program Revonub Transfer ln-AB2766 70,000 $70,000 $0 Duval.Svcs - Online permittinglinspocrions for air quality Transfer In - Safe Parks 53,000 $53,000 $0 Recr, - Prop A Activities - youth master plan Implementation Subtotal $3,544,285 $3,544,285 $0 REVENUES EXCLUDED FROM THE ANALYSIS Transient Occupancy Tax $700,000 $0 $700,000 A notal is not anticipated in the subject development Federal Grants $70,000 $0 $70,000 independent of sublan development Transfer In - Prop C Fund 9,000 $0 $9,000 independent of subject development Transfer In - Int. Wast Mgt. Fd 185,000 $0 $185,000 independent of subject devalopment Transfer In - COPS Fund 180,300 $0 $180,300 mdepndertofsubjectdeveiapmedt Off Highway Tax $1,000 $0 $1,000 independent of subject development Use of Money and Property $1,282,900 $0 $1,282,900 independent of subject development Economic Dev. Fund Balance $715,650 $0 $715,850 independent of subject development ERAF III State Takeaway ($397,475 N ($397,475 independent of subject development Subtotal $2,746,575 $0 $2,746,575 Total General Fund $20,244,610 $3,544,285 $16,700,325 Notes: ' For funding City departmental services Source: City of Diamond Bar. Proposed Budget for the Fiscal Year 2006-2007. Prepared by: Keyser Marston Associates, Inc. Filename:W-W\Empleye.\jiohnston\woBViscal-impact\DiamondBar\DlamondBalFiscal_3.7.07.xis; 3116/2D07; 9:11 AM; tj Appendix A - 2 SUMMARY OF GENERAL FUND BUDGET EXPENDITURES FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT (LESS) NET GF EXP 2006.07 PROGRAM INCLUDED IN BUDGET REVENUE' ANALYSIS GENERAL FUND Legislative City Council $171,600 $0 $171,600 City Attorney $165,000 $0 $165,000 City Manager/City Clerk $9936 140 $0 $936,140 Total $1,272,740 $0 $1,272.740 Administration and Support Finance $420,3D0 $0 $420,300 Human Resources $241,415 $0 $241,415 Information Systems $1,268,590 $0 $1,268,590 General Government $1,632,640 $0 $1,632,640 Public Information $577,790 $0 $577.790 Total $4,140,735 $0 $4,140,735 Public Safety ( Police Law Enforcement $4,987,000 ($592,500) $4,394,500 Volunteer Patrol $9,250 $0 $9,250 Fire $40,900 ($25,000) $15,900 Animal Control $112,500 $0 $112,500 Emergency Preparedness $43,290 §-D $43,290 Total $5,192,940 ($617,500) $4,575,440 Community Development Community Dev./Planning $916,630 ($480,000) $436,630 Building & Safety $482,600 ($750,400) ($267,800) Neighborhood Improvement $356,500 $0 $356,500 Economic Development $715,850 $0715 860 Total $2,471,580 ($1,230,400) $1,241,180 Community Services Community Services Admin $470,760 $0 $470,760 Diamond Bar Center -Oper. $864,730 $0 $884,730 Park Operations $730,510 $0 $730,510 Recreation $1,603,055 ($729.386) 773 670 Total $3,589,055 ($729,385) $2,859,670 Public Works Public Works - Admin $647,890 $0 $647,890 Engineering $316,150 ($967,000) ($650,850) Road Maintenance $1,135,750 $0 $1,135,750 Landscape Maintenance IM1 820 10 $341.820 Total $2,441,610 ($967,000) $1,474.610 Replacement Reserves & Insurance $343,350 $0 $343,350 (transfer out) $19,452,010 ($3,544,285) $15,907,725 Notes: Program revenue identified on Appendix Table A- 1. Source: City of Diamond Bar. Proposed Budget for the Fiscal Year 2006-2007 Prepared by: Keyser Marston Associates, Inc. Fitename: \�f-fsllEmployeetijohnslon\work\fiscal-impacilDiamondaaADiamondBar iscal_3,707 xls; 3116/20071 9:11 AM; jj APPENDIX B: ASSESSED VALUATION WORKING DRAFT Appendix B - 9 ASSESSED VALUATION AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT VALUE TOTAL ASSESSED BASIS PER UNIT VALUE AT BUILDOUT MARKET RATE VALUE ADDED Single Family Detached 2,200 DU $1,110,000 $2,442,000,000 Single Family Attached 600 DU $720,000 ' $432.000.000 Total 2,800 $1,030,000 $2,874,000,000 AFFORDABLE VALUE ADDED Single Family Detached 0 DU $0 Single Family Attached 0 DU $00 Total $0 COMMERCIAL VALUE ADDED 2 Community Shopping Center 200,000 SF $210 2 $42,000,000 Notes: 'Based on estimates from Aera 11.16.06. 3 Estimated based on Marshall and Swift Valuation Service, and land and site improvements value of $25 per sq. ft. Prepared by Keyser Marston Associates, Inc. Filename: \\sf-fst\Employee\➢ohnston\work\fiscal-impact\DiamondBar\DiamondBarFiscal_3.7.07.xis; B-1 value added; 3/16/2007; jj APPENDIX C: TAX RATES WORKING DRAFT - Appendix C - 1 TAX RATIO DISTRIBUTION FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT TAX RATE AREA 10068' AGENCIES RATIO Los Angeles County General 0.248744616 LA County Accumulated Capital Outlay 0.000110142 LA County Library 0.022368177 Consolidated Fire Protection District of LA County 0.169363881 LA County Fire - FFW 0.006156475 County Lighting Maintenance District No. 10006 0.020156003 LA County Flood Control Dr. Imp. Dist. Maintenance 0.001643522 LA County Flood Control Maintenance 0.009300947 Greater LA County Vector Control 0.000354735 County Sanitary District No. 21 Operating 0.012213084 Three Valley Metropolitan Water District Original Area _. _. 0.004089167167 Walnut Valley Water District 0.000725305 Walnut Valley Water District Imp. Dist. #3 0.006585074 Walnut Valley Water District Imp. Dist, #4 0.001599968 Educational Revenue Augmentation Fund 0.078135050 Educational Augmentation Fund Impound 0,133937622 County School Services 0.001366065 Children's Instil. Tuition Fund 0.002711165 Mt. San Antonio Community College 0.029260376 Mt. San Antonio Children's Center Fund 0.000282427 Walnut Valley Unified School District 0.190573308 County School Service Fund - Walnut Valley 0.007573791 Dev. Center Handicapped Minors - Walnut Valley 0.000831682 7715T_ Notes ' Tax rate area for Diamond Bar parcels neighboring Aare development. Source: Motllfled ATI Ratio Report FY 2006-07, Los Angeles County Auditor -Controller. Prepared by Keyser Marston Associates, Inc. Filename: \\sf-fsl\Employee\jjohnston\work\fiscal-impact\DiamondBar\DiamondBarFiscal_3.7.07.xls; C-1 tax rates; 3/16/2007; jj APPENDIX D: WORKING DRAFT Appendix D - 9 TAXABLE RETAIL SALES PER CAPITA FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY WORKING DRAFT CITY OF DIAMOND BAR, CA 2005 CITY OF % of AERA COMMUNITY % of DIAMOND BAR' Total AT BUILDOUT 2 Total Taxable Retail Sales ($000s) General Merchandise $23,581 8.2% $3,538 8.2% Apparel $941 0.3% $141 0.3% HF&A $1,828 0.6% $274 0.6% Grocery $15,207 5.3% $2,281 5.3% Restaurants & Bars $49,841 17.2% $7,478 17.2% Building Materials & Farm Implements $8,117 2.8% $1,218 2.8% Service Stations $87,243 30.2% $13,089 30.2% Other Retail Stores $102,405 35.4% $15,364 35.4% Total Taxable Retail Sales $289,163 100.0% $43,383 100.0% Population 3 Taxable Retail Sales per Capita 59,722 $4,842 Notes: ' California Retail Survey, 2006 Edition. 2 Distributed based on 2005 taxable retail sales per capita, and percent of spending per category. ' See Table 3 and 4. 8,960 $4,842 Prepared by Keyser Marston Associates, Inc. Filename: \\sf-fst\Employee\jjohnston\work\fiscal-impact\DiamondBarlDiamondBarFiscal_3.7.07x1s; D-1; 3116/2007; jj Appendix D - 2 TAXABLE RETAIL SALES IN COMMUNITY SHOPPING CENTER FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT RETAIL ESTIMATED PERCENT TAXABLE SQ.FT. f SALES PSF z TAXABLE' SALES ($000s) Agra Master Plan Retail In -Line Shops 72,000 $220 90% $14,300 Supermarket 52,000 $600 50% $15,600 Restaurants 16,000 $400 100% $6,400 Cinema Food and Beverage 50,000 $30 100% $1,500 Office (Second Floor) 10,000 $0 0% $0 200,000 $189 78% $37,800 Notes: ' Per Aare drawing 11.16.2006. 3 Per Dollars & Cents of Shopping Centers: 2004, Restaurant Industry Operations Report 2004, KMA experience in similar projects. Prepared by Keyser Marston Associates, Inc. Filename: \\sf-fsl\Employee\jjohnston\work\fiscal-impact\DiamondBar\Di a mondearFiscal_3.7.07.x1s; D-2; 3/16/2007; jj Appendix D - 3 TAXABLE SALES ALLOCATED TO PROJECT FISCAL IMPACT ANALYSIS AERA MASTER PLAN COMMUNITY CITY OF DIAMOND BAR, CA WORKING DRAFT Taxable Sales Comparison Total Annual Sales Residents/Retail Sq. Ft. Per Resident/Retail Sq. Ft. Notes; ' See Table D - 1. 3 See Table D - 2. BASED ON NEW BASED ON RESIDENTS' NEW RETAIL 2 $43,353,000 8,960 res. es Prepared by Keyser Marston Associates, Inc. Filename: \\sf-fst\Employee\jjohnston\work\flscal-impact\DiamondBar\DiamondBarFiscal_3.7.07.xls; D-3; 3/16/2007; h $37,800,000 $37,800,000 200,000 sf $189/sf g � o Ob olo .n1�lplW Wm m�m.W WI W m-iWiW W W:a',W Wlm WIW IW:;O o W NI l0 0 0'. z a c vAmllS'POIa OI]J U SiImICN�<a��oao �xm 2� m lam lm m'I, 0 02 0 01.9 n 3P � m13 nv° < S � °� �i q � 0 0 P1 o�ha mm�Dw� d �Iw Ch mlW lie �w=ala �K. �I�S�. o m-91 8,. .; �ppCr hm � : 0. 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March 8, 2007 The following scope of work is a refinement to EDAW's preliminary scope of work for the Aera Energy Master Plan Environmental Impact Report (EIR) peer review, which was originally presented to the City of Diamond Bar (City) in our January 29, 2007 proposal. This scope of work has been refined and expanded to provide a more interactive role with the City and Aera's consultants, as requested at our February 22, 2007 meeting with the City and the project team and the expected role of Diamond Bar as the CEQA lead agency. In order to provide an understanding of the changes that have occurred to the scope of work, revisions have been provided in track changes. TASK 1: PROJECT MOBILIZATION 1.1: Kickoff Meeting EDAW will meet with the City of Diamond Bar, Aera Energy, and other members of the planning team to discuss the project, the status of any ongoing technical studies and to clarify any assumptions for the review process. The kickoff meeting will provide the opportunity to discuss points of contact; communication protocols with other members of the planning team; environmental issues; and any other logistical, technical, or procedural concerns. A focus of this meeting will be to provide the EDAW team with the documents to be reviewed, to discuss the project and its related components, and to discuss any project challenges that the technical team has encountered to -date. 1.2: Project Area Reconnaissance This task includes a project team site visit. It is assumed that Aera Energy will lead the site visit The EDAW project management and technical team will attend the site visit to gain an understanding of the project site. TASK 2: PROJECT TEAM MEETINGS EDAW will meet with the Aera Energy consultant team to review the status of the project, receive updates on the status of EIR revisions, work collaboratively on technical issues, and provide guidance on behalf of the City of Diamond Bar. At a minimum, these team meetings will be attended by EDAW project manager, an assistant planner, and The Planning Center project manager. In addition, some meetings will require attendance by EDAW's technical specialists. Included in this task will be meetings focused on technical issue areas, where Aera's technical specialists will meet with EDAW specialists to provide an overview of the project and initiate a collaborative working relationship between the technical team members. It is also anticipated that several of the meetings could be attended by the City of Diamond Bar staff. EDAW will record and circulate brief meeting summaries, which will detail team action items. EDAW will be available to work with The Planning Center and the City of Diamond Bar to ensure that the requirements of the Memorandum of Understanding (MOU) between the City and the counties of Los Angeles and Orange are being addressed. EDAW will consult with The Aera Energy Master Plan Environmental Impact Report Scope of Work March 8, 2007 Page 2 of 12 Planning Center to collaborate on appropriate approaches to involvement of these agencies. This effort will include discussing strategies for addressing input received from the MOU signatories. This scope of work assumes that The Planning Center will be responsible for direct coordination with the counties of Los Angeles and Orange. For budgetary purposes, it is assumed that the team meetings will occur on average every other week. In addition, it is assumed that one-third of the meetings will be held at The Planning Center, one-third will be held in San Diego, and one-third will be held in the City of Diamond Bar. The number of meetings allocated assumes completion of the Draft EIR in July 2007 and the Final EIR in November 2007. Should this schedule be extended, additional meetings may be warranted, which could require a scope of work and budget amendment. In total, 20 team meetings have been allocated under this task and others in this scope of work. TASK 3: PROJECT DESCRIPTION EDAW will review the project description to ensure that all the necessary components of the project are adequately described. Our team will take the necessary time to carefully understand the key elements of a project description. In our review of the project description, a key consideration will be whether the project objectives are sufficient and provide the appropriate connection to the alternatives analysis. It will also be important for the project description to address all of the actions necessary for implementation of the project, including those actions that will be necessary for annexation to the City of Diamond Bar (e.g., sphere of influence amendment, General Plan amendment, prezoning, and annexation application). As a responsible agency for the project, the Local Agency Formation Commission (LAFCO) will need to be involved in the definition of the project and the related organizational actions. In addition, the level of detail provided on any necessary infrastructure improvements for the master plan will be considered, in light of the technical assessment contained in the ADEIR. Also included in this task is review of the project description by members of the technical team. EDAW will work with The Planning Center to revise the project description to ensure it is reflective of the City of Diamond Bar's participation, objectives, and involvement. EDAW will work with the City and The Planning Center to review the project objectives in consideration of the guidance provided by CEQA. The City of Diamond Bar will review the project objectives to ensure their concurrence with the vision of the project. In addition, EDAW will compare the project objectives with the alternatives developed to -date, and will consider whether the objectives are appropriate to frame the consideration of alternatives. The Planning Center is assumed to be the main author of the revised project description. TASK 4: NOTICE OF PREPARATION AND ENVIRONMENTAL SCOPING 4.1: Notice of Preparation Serving at the City's EIR consultant, EDAW will author a draft and final Notice of Preparation (NOP). The NOP will be submitted to the City and the Aera team for review and consideration. Once comments are received, EDAW will revise the NOP for public circulation. EDAW will Aera Energy Master Plan Environmental Impact Report Scope of Work March 8, 2007 Page 3 of 12 assist The Planning Center with review and revision of the distribution list for the NOP. If necessary, EDAW could also distribute the NOP. 4.2: Scoping Meeting During the 30 -day NOP comment period, EDAW will lead a public scoping meeting. EDAW will prepare draft notices and materials for the meeting. The EDAW project management team will attend and lead the scoping meeting. It is assumed that the scoping meeting will be held in the City of Diamond Bar. It is assumed that a single scoping meeting will be held for the project to provide an opportunity for the public and agencies to comment on the scope of the EIR. EDAW will prepare a matrix summarizing the oral and written comments received at the scoping meeting. 4.3: NOP Comments Evaluation Once the NOP comments are received, EDAW will review the comments against the technical data currently available. EDAW will summarize the NOP comments for the City's consideration, including any refinements that may be warranted to the analyses that will be relied upon for the EIR. TASK 5: THRESHOLDS OF SIGNIFICANCE Because the City will be the Lead Agency for the revised EIR, the thresholds of significance for each topical analysis will need to be expanded to incorporate the City's evaluation criteria. For this task, it is assumed that The Planning Center will provide a summary of proposed revisions to the EIR thresholds of significance and analysis methodologies to appropriately incorporate the City's authority and anticipated jurisdiction over the project. EDAW will review the proposed thresholds of significance and analysis methodologies and will offer revisions or expansions based on the anticipated needs of the City and input from City staff. TASK 6: ADMINISTRATIVE DRAFT EIR REVIEW EDAW has conducted a preliminary review of the current ADEIR. Based on this review, it appears that the document provides a comprehensive and sound analysis of the Aera Master Planned Community. To assure this initial impression, EDAW will provide a comprehensive review of the document and associated technical studies, enlisting our technical experts, where appropriate. Our review will focus on legal adequacy, organization, technical adequacy, and anticipated agency expectations. In addition, with the recognition that there is always more than one way of accomplishing a common goal, we will provide suggestions for alternative approaches and mitigation measures if we feel they may be in the interest of the City of Diamond Bar and Aera Energy. This interactive approach will ensure that the Final EIR meets the objectives of the whole team. The following reviews will occur through this task. Where these technical reviews encompass several of the environmental analysis sections included in the ADEIR, these references have been provided in parentheses. Aera Energy Master Plan Environmental Impact Report Scope of Work March 8, 2007 Page 4 of 12 The order of reviews in this task will not necessarily occur consecutively. This task will be coordinated with The Planning Center to ensure efficiencies. We expect that our initial reviews will focus on those subject areas that are not expected to change significantly with the inclusion of the City of Diamond Bar's participation. Later reviews will address those sections and technical reports that are currently undergoing revision. 6.1: Geotechnical In this task, EDAW team member Wilson Geosciences Inc. will conduct a technical peer review of the geotechnical report, the erosion and sedimentation portions of the runoff reports, and a review of the associated ADEIR sections. This proposed site area in the Puente Hills is impacted primarily by active faulting (Whittier fault Alquist-Priolo Earthquake Fault Zone), potential landslides and liquefaction, previous use as an oil field, and strong earthquakes. Wilson Geoscience Inc. will provide input on the general adequacy of the geotechnical report for this geologically challenging area and, if necessary, recommendations for possible additional study. 6.2: Hydrology and Water Quality (Flood, Water Quality) EDAW's senior hydrology and water quality scientist will review the ADEIR technical reports and sections pertaining to storm drainage, water quality, and hydrological concerns. EDAW will consider potential impacts that may create localized water quality issues and cumulative downstream concerns. Specific controls for managing construction and runoff will be discussed relative to the master plan. The peer review of the hydrology and water quality analysis shall consider existing surface and groundwater conditions, applicable water quality standards and regulatory requirements, appropriate water quality significance thresholds, anticipated hydrologic and water quality impacts resulting from implementation of the proposed improvements, evaluation of construction -related surface water quality impacts and mitigation measures and best management practices (BMPs) required to mitigate the significant surface and groundwater quality impacts of the project. Compliance with post -construction storm water management requirements will also be addressed in terms of jurisdictional (i.e., municipal) regulations as well as state and federal mandates. Any recommendations for modification or expansions to the analysis and related mitigation measures will be made. 6.3: Public Services (Education, Fire/Sheriff) EDAW will examine the ADEIR analyses pertaining to public services, including the schools study completed by Jeanette C. Justis Associates and the correspondence received from the involved agencies. This review will also address fire safety issues, which are addressed in a separate section of the ADEIR. A particular focus of our analysis will be to consider whether the necessary public services can be provided to the project and to consider to what degree off-site facilities or improvements may be necessary. The environmental impacts of any necessary public service improvements must also be considered in the ADEIR. EDAW will examine the other technical sections of the ADEIR to ensure the connection between public service improvements and any secondary environmental effects is made. Aera Energy Master Plan Environmental Impact Report Scope of Work March 8, 2007 Page 5 of 12 6.4: Noise EDAW's senior acoustical expert will conduct a thorough technical review of the noise analysis completed by Giroux and Associates. This review will consider consistency with local standards for each jurisdiction (Los Angeles County, Orange County, and the City of Diamond Bar). The complexity posed by having several local agencies involved will be considered. If refinements to the study approach and mitigation measures are necessary, they will be recommended. 6.5: Air Quality EDAW's senior air quality expert will conduct a thorough technical review of the air quality analysis completed by Giroux and Associates. This review will consider consistency with the South Coast Air Quality Management District (SCAQMD) methodologies and standards. Specific attention will be paid to any updates that may be necessary based on the changing standards and requirements within the region. EDAW will conduct spot-checks of references and regulatory standards to ensure adequacy and consistency with SCAQMD requirements. The appropriateness of the recommended mitigation measures will be reviewed and any refinements will be recommended. 6.6: Biological Resources Extensive biological resource analysis has been completed in support of the ADEIR. Senior EDAW biologists will review the technical studies to determine whether the methodologies and conclusions are sound. Appropriate regulatory agency representatives will be contacted to clarify concerns or preferred mitigation approaches. Prior to any agency contact, EDAW will coordinate with the Aera team (e.g., The Planning Center) to ensure the correct contact is made and to establish any appropriate contact protocols. Our senior biologists will pay particular attention to the appropriateness of project mitigation measures. If alternative mitigation measures may be warranted or possible, EDAW will provide this input. It is anticipated that supplemental field or survey work will not be necessary, and is not included in this scope of work. 6.7: Cultural Resources A senior EDAW cultural resource specialist will review the cultural resource study, prepared by John Minch and Associates. This review will focus on the study methodology, thresholds of significance, and the appropriateness of the mitigation measures identified for the project. Consideration will be given to the extent of conducted surveys given the programmatic stage of the project. In addition, the ADEIR section will be reviewed to ensure the methods and recommended measures are appropriately characterized in the ADEIR, and that mitigation measures provide the necessary level of detail and description of performance standards to ensure that potential impacts to known and unknown cultural resources are addressed. EDAW will provide Native American consulting services for the City of Diamond Bar as mandated by Senate Bill (SB) 18 due the General Plan Amendment that will be necessary for project implementation. EDAW will contact the Native American Heritage Commission for a sacred lands search and a list of SB 18 contacts. In consultation with the City, EDAW will draft a Aera Energy Master Plan Environmental Impact Report Scope of Work March 8, 2007 Page 6 of 12 Native American contact letter for distribution on City of Diamond Bar letterhead. The contact letter will be followed with phone calls. Based on the size and complexity of the project, it is anticipated that EDAW will organize up to three (3) consultation meetings between tribal representatives and city staff. In addition, EDAW staff will conduct up to two (2) field trips with City and Native American representatives. EDAW will provide written documentation of contacts, along with meeting minutes and field trip notes. 6.8: Mineral Resources The ADEIR mineral resource section will be reviewed to ensure the potential for impacts to mineral resources is appropriately addressed and substantiated in the ADEIR. 6.9: Agricultural Resources The ADEIR agricultural resource section will be reviewed to ensure the potential for impacts to these resources is appropriately addressed and substantiated in the ADEIR. The subject of agricultural resources and methodologies for their assessment is an area where there are differing views within the environmental and consultant communities. EDAW is well versed in the differing views and analysis methodologies regarding this topic; we have a particular expertise in this regard, and have authored several articles and presentations on the topic. Our review will focus on the methodologies used for the analysis, and will consider whether they are the most conservative approach in light of the case law and statutes that provide guidance on this topic. If warranted, we will recommend any adjustments which may bolster the conclusions of the analysis. 6.10: Visual Quality EDAW will review the visual analysis in consideration of the guidance provided by CEQA and the CEQA Guidelines. Although the consideration of visual impacts can be subjective, the clear definition of thresholds of significance and connectivity of the analysis to the thresholds of significance can provide clarity in a visual analysis. Of particular concern for the project will be whether the project substantially changes the character of the site and surroundings and whether scenic resources would be damaged or removed. Because the project would result in development of a large portion of land that is currently open space, these considerations will be of particular concern. Special attention will be given to the definition of scenic resources, using the general plans and regulatory documents of the involved agencies as guidance. In addition, consideration will be given to the hillsides and ridgelines and to what degree the involved jurisdictions characterize these as important resources. To the extent possible, the ADEIR visual quality section should rely upon adopted regulatory standards and guidance for these definitions. Where these definitions are not available, the ADEIR analysis could create the substantiation to defend the conclusions regarding visual impacts. In our review of the ADEIR visual quality section, we will also pay particular attention to any identified mitigation measures to consider whether the measures directly address the impact in enough detail to reduce any identified impacts to a less -than -significant level. It is our understanding that the ADEIR also identifies some visual impacts as significant and unavoidable, We will review these findings and determine whether they are substantiated. In addition, EDAW will determine if alternatives should be considered to address these identified impacts. Aera Energy Master Plan Environmental Impact Report Scope of Work March 8, 2007 Page 7 of 12 6.11: Transportation/Traffic As part of this task, EDAW team member Fehr & Peers will participate in a meeting with LSA Associates, the consultant responsible for developing the traffic and circulation analysis. This meeting will provide an opportunity to review the approach and methodologies used in the study. It is our understanding that a separate traffic analysis has been conducted for Los Angeles and Orange counties. The approach for incorporation of any applicable standards or requirements specific to the City of Diamond Bar will be discussed. Fehr & Peers will then conduct a peer review of the documents and any relevant technical appendices. A focus of this review will be whether the methods are applicable to the context and for defensibility related to CEQA requirements and recent court cases. Additionally, Fehr & Peers will conduct spot- checks of technical calculations and will identify any issues that may need additional information to develop a comprehensive analysis. Consideration will be paid to different methodologies or thresholds that may be necessary to address the needs of the multiple jurisdictions involved in the project. Specific attention will be paid to the identified mitigation measures, considering whether they are adequate with respect to the needs of the City of Diamond Bar. Fehr & Peers will consider whether alternative mitigation measures are possible, and whether the mitigation measure triggers and fair -share contributions are proportional to the project's impact. Mechanisms may be suggested for on-going monitoring of the project and a protocol may be developed for how individual maps will be reviewed (and further studies needed) subsequent to master plan approval. 6.12: Sewage Disposal In this task, EDAW will conduct a technical peer review of the ADEIR section focused on sewage disposal to determine whether the appropriate study methodologies have been considered. In addition, EDAW will review this section for its compliance with CEQA, including the adequacy of significance conclusions and any identified mitigation measures. 6.13: Utilities The utilitles analysis will need to address all the improvements necessary to provide utility service connections to the project site. Considerations in our review will be to determine whether the analysis addresses any off-site improvements or connections that may be necessary. The utilities analysis should be oriented toward LAFCO review and use of the document for any service boundary changes necessary for the project. As part of this task, EDAW will conduct a thorough technical review of the Water Supply Analysis. Our team has particular experience developing water supply assessments for public agencies in response to SB 610; based upon this expertise, we will provide any input that we feel is necessary to ensure the assessment is regarded as technically sound. 6.14: Environmental Safety EDAW's senior hazardous materials specialist will review the environmental safety section of the ADEIR and the Phase 1 Environmental Site Assessment to determine its adequacy in methodology, approach, and impact definition. In addition, the ADEIR section will be reviewed Aera Energy Master Plan Environmental Impact Report Scope of Work March 8, 2007 Page 8 of 12 to consider the adequacy of any mitigation measures requiring additional study, and whether the measures provide for the necessary performance standards to ensure CEQA compliance. 6.15: Land Use The land use section will be reviewed by a senior land use and CEQA specialist. Specific attention will be paid to the policy analysis and how the policy analysis is integrated into the environmental analysis. Consistencies and inconsistencies with existing and proposed local land use plans and policies should be identified and addressed, in compliance with Section 15125(d) of the CEQA Guidelines, which direct all EIRs to discuss any inconsistencies between a proposed project and applicable general plans and regional plans. The plans and policies of the City of Diamond Bar, Los Angeles County, and Orange County should be addressed. In addition, it is assumed that this section of the ADEIR considers whether any environmental impacts related to land use could occur. Of particular importance in a land use analysis is the definition of thresholds of significance, and what constitutes a significant environmental impact. EDAW will make any necessary recommendations in light of these considerations. 6.16: Population, Housing, and Employment EDAW will review the population, housing, and employment section of the ADEIR, paying particular attention to the distinction between environmental and social issues. In addition, this section of the ADEIR should also address to what degree secondary environmental impacts could occur from potential social issues related to housing and employment. In particular, EDAW will consider the identified thresholds of significance and their linkage to the environmental evaluation provided in this section. 6.17: Recreation The ADEIR recreation section will be reviewed to ensure the potential for impacts to recreation resources and any secondary environmental effects are appropriately addressed and substantiated in the ADEIR. 6.18: Cumulative Analysis The required components of the cumulative assessment are included in several sections of the ADEIR. The assumptions regarding cumulative impacts are provided in the Environmental Setting section of the ADEIR, while the technical cumulative analyses are provided in each of the environmental resource chapters. EDAW will review these sections to determine their sufficiency. Of particular focus will be consideration for the extent of projects or growth assumptions that are included in the assumptions regarding cumulative impacts, or what can be referred to as the "cumulative baseline." Our review of the cumulative analyses will be based on an understanding of other projected growth, uses proposed in the vicinity of the property, and specific known projects, which would be added to specific impacts of the project. We will consult with each of the counties and the City of Diamond Bar to determine the sufficiency of the cumulative baseline. Aera Energy Master Plan Environmental Impact Report Scope of Work March 8, 2007 Page 9of12 In addition, the cumulative analyses will be reviewed to ensure that they create a logical connection between the cumulative baseline and potential cumulative impacts. The cumulative analysis should include the following elements: • A discussion of related projects (the cumulative baseline). It is typically best if the baseline is discussed issue by issue (i.e., land use, air quality, traffic, noise, biological resources, etc.), since the cumulative baseline or study area may differ by topic. • A conclusion as to whether the baseline for each environmental topic is significant, • If environmental impacts under the baseline are significant, a discussion and determination as to whether the project would contribute considerably and therefore cause a cumulatively significant effect. • If environmental impacts under the baseline are not significant, a discussion and determination as to whether the project plus baseline exceed significance thresholds, and therefore result in a collectively significant effect. • If there is a significance finding, the cumulative assessment should identify mitigation measures to reduce the key impacts to a less -than -significant level. If mitigation measures are not available, the reasons that they are not available must be substantiated. EDAW will evaluate the components of the cumulative assessment in light of this guidance. If necessary, EDAW will recommend additions or revisions to the cumulative assessment in order to address the necessary requirements of CEQA and the CEQA Guidelines. 6.19: Alternatives to the Proposed Project The alternatives analysis will be reviewed for sufficiency in light of the guidance provided by CEQA, the CEQA Guidelines, and applicable case law. The focus of the alternatives considered should be those alternatives that could avoid or substantially lessen the significant environmental impacts identified in the technical sections of the ADEIR. The alternatives analysis can often be the subject of litigation, and thus our review will afford special attention to whether the analysis meets the intent of the law. For example, we may have suggestions for ways to expand the alternatives analysis to provide a clear record of why particular alternatives have been rejected from consideration (e.g., not meeting project objectives or infeasibility). In our review of the alternatives analysis, we will consider the concerns that were previously raised by comments in response to the Notice of Preparation to ensure that the analysis is responsive. In addition, we will consider the significant environmental impacts identified for the project in the issues analyses, and whether the alternatives analysis adequately discusses alternative scenarios that may avoid or reduce the identified environmental impacts. While it is not a requirement of a lead agency to analyze every possible alternative or to adopt the environmentally preferable alternative, the EIR must provide the enough detail and discussion so that decision -makers can make an informed choice about the options that are available. This task will address the review of up to 8 alternatives. This includes the alternatives included in the ADEIR that was made available to EDAW for initial review, plus one additional alternative. Should additional alternatives be added for consideration, a scope of work and budget amendment may be necessary. Aera Energy Master Plan Environmental Impact Report Scope of Work March 8, 2007 Page 10 of 12 6.20: Other ADEIR Sections EDAW will review all other sections required to assemble a full and complete ADEIR. This task will include the table of contents, executive summary, introduction, environmental setting, growth inducement, effects not found to be significant, unavoidable significant effects, significant irreversible environmental changes, references, and individuals and agencies consulted. We will pay specific attention to the required contents of an EIR as specified by the CEQA Guidelines to ensure that no element is overlooked. 6.21: Global Warming There is now a strong legal, as well as a scientific, basis for the argument that CEQA documents should begin to address global warming issues. This basis includes the recent signing of AB 32 by the Governor, which integrated specific language regarding global warming into the Health and Safety code. In addition, there are several active lawsuits on EIRs where the challenges include the claim that global warming was not adequately addressed. While the level of detail require for a global warming evaluation does not need to be exhaustive, it should be addressed in the EIR. EDAW has been working directly with Jim Moose of the Remy, Thomas, Moose, and Manley, arguably the leading CEQA law firm, on this issue, and can provide specific guidance to the planning team on how to integrate this issue into the environrnental analysis. TASK 7: REVISED ADMINISTRATIVE DRAFT EIR This task accommodates EDAW's involvement in reviewing revisions to the sections and technical reports considered in Task 6. It is anticipated that a complete revised ADEIR will be provided to the EDAW team after incorporating comments made during Task 6. EDAW's review will be concurrent with the City of Diamond Bar's review. Included in this Task is EDAW's participation in team meetings (up to 2 meetings accounted for in Task 2) to review the City's comments on the revised ADEIR and provide direction to the Aera team. TASK 8: PUBLIC REVIEW DRAFT EIR EDAW will prepare the Notice of Completion and the Notice of Availability, and submit the notices and the requisite documents (provided by The Planning Center) to the State Clearinghouse. In addition, the Notice of Availability will be submitted to the County Clerk. EDAW will be reimbursed the cost of filing the Notice of Availability with the County Clerk. EDAW will assist The Planning Center with review and revision of the distribution list for the Notice of Availability. If necessary, EDAW could also assist with the distribution of the notices and environmental documents. EDAW will be available to support the City in the 45 -day public review process for the Draft EIR. This task includes attendance and presentation support at a public meeting to receive oral comments on the Draft EIR. Aera Energy Master Plan Environmental Impact Report Scope of Work March 8, 2007 Page 11 of 12 TASK 9: FINAL EIR At the completion of the Draft EIR public review period, EDAW will review the public comments received on the Draft EIR concurrent with The Planning Center's review. EDAW will provide input on the issues that need to be addressed in the response to comments. The Planning Center will be responsible for the development of response to comments. This will include responses to letters as well as oral comments received at any public meetings. After The Planning Center develops the responses to comments, EDAW will conduct a review of the draft responses. This review will focus on the sufficiency and responsiveness of the written responses. Because the number of comments to be received during the public review period is difficult to predict, this scope of work estimates the level of effort to a review of 30 comment letters, with an average of 10 comments per letter and the associated responses and Draft EIR revisions. After EDAW has provided input into the draft response to comments, it is assumed that The Planning Center will finalize the response to comments and prepare the Administrative Draft EIR, which will include the responses to comments and the associated revisions to the Draft EIR. Based on this volume of anticipated comments, it is assumed that the Final EIR (comments and responses) will not exceed 200 pages. However, depending on the number and complexity of the comments received, additional effort may be required. In our peer review of the Final EIR, our technical experts will be engaged as necessary to address and review technical issues of concern. This task assumes up to 2 meetings (accounted for in Task 2) with the City of Diamond Bar and the planning team. This task is limited to the professional hours, as shown in the accompanying spreadsheet. Should additional effort be necessary for completion of this task based upon the volume or complexity of the comments received on the Draft EIR, and contract and budget amendment would be necessary. TASK 10: MMRP, FINDINGS OF FACT, AND STATEMENT OF OVERRIDING CONSIDERATIONS EDAW will review of the Mitigation Monitoring Program, the Findings of Fact and Statement of Overriding Considerations. EDAW will provide comments on initial drafts of these documents. In addition, EDAW will review revised versions of the documents to ensure our comments are incorporated appropriately. TASK 11: PUBLIC HEARINGS On the City's behalf, EDAW will be available to attend and participate in the public hearings for certification of the Final EIR and consideration of project approval. This scope of work assumes up to three hearings will be necessary for the project. Up to two preparatory meetings are included in this task to review the staff report, presentation, and define roles for the meetings. Aera Energy Master Plan Environmental Impact Report Scope of Work March 8, 2007 Page 12 of 12 EDAW will prepare the Notice of Determination and file it with the State Clearinghouse, if desired by the City of Diamond Bar.