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HomeMy WebLinkAbout12/19/2006 Minutes - Regular MeetingCITY OF DIAMOND BAR CITY COUNCIL STUDY SESSION DECEMBER 19, 2006 STUDY SESSION: M/Tye called the Study Session to order at 5:45 p.m. in Room CC -8 of the South Coast Air Quality Management District/Government Center, 21865 Copley Dr., Diamond Bar, CA. Present: Council Members Chang, Herrera, Zirbes (telephonically), MPT/Tanaka and Mayor Tye. Also Present: James DeStefano, City Manager; David Doyle, Assistant City Manager; Michael Jenkins, City Attorney; David Liu, Public Works Director; Bob Rose, Community Services Director; Linda Magnuson, Finance Director; Nancy Fong, Community Development Director; Ken Desforges, IS Director; Rick Yee, Senior Engineer; Kimberly Molina, Associate Engineer; Ryan McLean, Senior Management Analyst; Alfredo Estevez, IS Technician, and Tommye Cribbins, City Clerk. 0. DISCUSSION OF ANIMAL CONTROL SERVICES SMA/McLean stated that in May 2006 City Council approved an extension of the IVHS contract that resulted in a significant annual net cost increase to the General Fund from $82,463 to $102,008, an annual increase of $19,545. He proposed options that would generate an additional $24,000 to cover the increase. M/Tye asked why D.B. did not license cats. Bill Harford, Executive Director of IVHS responded that some cities license cats and some don't. However, the Society now handles more cats than dogs at the shelter. IVHS would highly recommend licensing cats because the State mandates care for dogs and not cats. It appears that the State does not intend to adopt regulations for cats and cities are beginning to come on board to adopt the same standards for cats as for dogs. MPT/Tanaka said he would like to see fees for cats included because if the City adopted fees for cats the Council may not have to increase other fees. Mr. Harford explained that in cities where regulations for cats have been adopted the first year was used for educational purposes and so far the program has been very successful. To date, funds received from licensing cats are placed in escrow accounts waiting for the Cities to decide how they will use the money. Following discussion, Council agreed to consider licensing cats and directed staff to provide information to the Council as to the amount of increase that would be needed. DECEMBER 19, 2006 PAGE 2 CC STUDY SESSION ON. DISCUSSION OF PRE -ANNEXATION AGREEMENT WITH AERA ENERGY ACM/Doyle reported that included in tonight's agenda was consideration of a pre -annexation agreement between the City and Aera Energy LLC. The agreement lays out a lengthy process toward possible annexation of the Aera property. The agreement is merely a formalization of an agreement to work together to proceed and includes a guarantee that the Developer will reimburse the City for costs associated with the process. The agreement is for a period of five years from the effective date and identifies a number of areas where the City has worked with the Developer to make certain that both entities are in agreement with the process such as addressing affordable and workforce housing within the City's limits; possibility of requiring green construction techniques; that the vesting rights lasting 25 years would be subject to CEQA review, etc. The City and Aera are agreeing in principle that if the project moves forward, the land is entitled and if the Developer proceeds with development, the Developer may use a public financing instrument; agreeing in principle that whatever is determined through this process the Developer would have the right to assign/transfer those rights to a third party builder. The Counties of Los Angeles and Orange have been the lead agencies working with Aera and the Developer has told the City he is interested in being annexed into the City of D.B. and would like to proceed with the process and pay for the costs associated therewith. C/Herrera said she had not heard comments about this proposal from D.B. residents. C/Chang said he was concerned about the timing and wondered if the lead agencies were aware that this subject was being discussed tonight. CM/DeStefano said that staff had been in discussions for quite some time with Los Angeles County on the issue of whether or not the project would move forward and be annexed into the City of D.B. Los Angeles County and the Supervisor's office are aware of the City's activities. Last week a copy of the staff report was transmitted to the Supervisor's office and the Supervisor is indicating it may not have been sufficient time for the office to respond or distribute the information. Tonight's action is a result of a process that the City has undertaken over many months at different levels within Los Angeles County. ACM/Doyle stated that if Council approves the agreement there will be ample opportunity for public participation throughout the process and the City would commit to welcoming comments from neighboring communities and stakeholders as the process unfolds. DECEMBER 19, 2006 PAGE 3 CC STUDY SESSION 1 George Basey, Aera Energy, said he took exception with some of the comments made by the previous speaker. Aera and the City and City's legal counsel spent many months working together on this agreement and the City reserves discretionary rights of approval on the proposed project. He said that Aera was excited to work with the City on the proposal and that was the spirit with which the agreement was presented this evening. C/Herrera referred to the termination section of the agreement and wondered about the validity of Mr. Permaul's comments. ACM/Doyle stated that either party may terminate the agreement with 10 -days written notice. ADJOURNMENT: With no further business to come before the City Council, M/Tye adjourned the Study Session at 6:10 p.m. rf U TOMMYE CRIBBINS, City Clerk PUBLIC COMMENTS: Lawrence G. Permaul, Senior Counsel, Colantuono & Levin, representing the Hillside Open Space Education Coalition, an organization of neighboring cities (Brea, LaHabra, LaHabra Heights, Whittier) Hacienda Heights Improvement Association and Rowland Heights Community Coordinating Counsel, said that the Hillside Open Space Education Coalition only recently learned about tonight's agenda item and did not believe his firm had been granted sufficient time to address the issues. Some of the information being considered was not made available online in terms of the exhibits to the agreement and so forth. His firm is interested in providing public input. He presented a letter outlining the Coalition's concerns. Further, his firm believes there is no need for moving forward with this agreement at this time. Rather, the City should move forward with an EIR, which his firm believes is absolutely necessary in accordance with CEQA. Although the agreement has been referred to as a "steering" instrument, it creates contractual rights that are not necessarily spelled out in the agreement. The agreement is not specific and eliminates the City's ability to impose mitigation measures by limiting it to the CEQA analysis. He said he was curious about the timing of the agenda item because it did not seem to be in the spirit of the due process requirements of open government. Despite the short notice one can see that there is already substantial organized opposition to moving forward with the agreement. He believed that the agreement favored the Developer and not the City and not its neighboring communities. He asked Council for additional time to vent all of the public issues. 1 George Basey, Aera Energy, said he took exception with some of the comments made by the previous speaker. Aera and the City and City's legal counsel spent many months working together on this agreement and the City reserves discretionary rights of approval on the proposed project. He said that Aera was excited to work with the City on the proposal and that was the spirit with which the agreement was presented this evening. C/Herrera referred to the termination section of the agreement and wondered about the validity of Mr. Permaul's comments. ACM/Doyle stated that either party may terminate the agreement with 10 -days written notice. ADJOURNMENT: With no further business to come before the City Council, M/Tye adjourned the Study Session at 6:10 p.m. rf U TOMMYE CRIBBINS, City Clerk DECEMBER 19, 2006 PAGE 4 CC STUDY SESSION The foregoing minutes are hereby approved this 16th day of Tannary 2007. STEVE TY ayor 1 1 MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR DECEMBER 19, 2006 CLOSED SESSION: 5:15 p.m., Room CC -8 Public Comments on Closed Session Agenda: ► Government Code Section 54956.9(a) — Pending Litigation — Two cases 1) People of the State of California v. Ratan Hospitality, LLS (Scribbles) Case No. BC351925 2) Diamond Bar v. Southern California Edison LACSCC — No. BC351266 Closed Session adjourned at 5:35 p.m. STUDY SESSION: 5:45 p.m., Room CC -8 ► Discussion of Animal Control Services ► Discussion of Pre -Annexation Agreement with Aera Energy Study Session adjourned at 6:10 p.m. CALL TO ORDER: Mayor Tye called the Regular City Council meeting to order at 6:30 p.m. in The Government Center/SCAQMD Auditorium, 21865 Copley Dr., Diamond Bar, CA. CA/Jenkins reported that the City Council began with a Closed Session during which one item of threatened litigation was added to the agenda. There were no comments on the Closed Session agenda and Council took no reportable actions. The Closed Session ended at approximately 5:35 p.m. PLEDGE OF ALLEGIANCE: MPT/Tanaka led the Pledge of Allegiance. INVOCATION: Monsignor James Loughnane, St. Denis Catholic Church gave the invocation. ROLL CALL: Council Members Chang, Herrera, Zirbes (telephonically), Mayor Pro Tem Tanaka and Mayor Tye. Staff Present: James DeStefano, City Manager; David Doyle, Assistant City Manager; Michael Jenkins, City Attorney; Bob Rose, Community Services Director; Nancy Fong, Community Development Director; Linda Magnuson, Finance Director; Ken Desforges, IS Director; Ryan McLean, Senior Management Analyst; Rick Yee, Senior Engineer; Kimberly Molina, Asst. Engineer; Alfredo Estevez, IS Tech; and Tommye Cribbins, City Clerk. DECEMBER 19, 2006 PAGE 2 CITY COUNCIL APPROVAL OF AGENDA: As Presented. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 The City Council presented Certificates of Recognition to students from Chaparral, Lorbeer, South Pointe and Suzanne Middle Schools who participated in the Friends of the Library second annual "Read Together Challenge" held on November 2, 2006. Marney Shay, Friends of the Library announced that two schools won the Challenge this year, South Pointe Middle School being one, who would receive a plaque similar to the perpetual plaque that will be placed at the D.B. Library. 1.2 M/Tye presented Certificates of Recognition to the players and coaches of the Destroyers" Baseball Team for being the Champions of the Cooperstown Youth Baseball Hall of Fame Championship Tournament. NEW BUSINESS OF THE MONTH: 1.3 M/Tye presented Sharon Oliver with a Certificate Plaque to Target #2179 located at 747 Grand Ave. as New Business of the Month for December 2006 and displayed a slide presentation. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: 2.1 Los Angeles County Fire Chief Nieto thanked the City Council for purchasing a Thermal Imagine Unit for his Department. Capt. Green explained that the $15,000 camera detects heated objects such as a body in a building and can locate hidden fires in attics and walls. The unit can also be used to detect individuals trapped in vehicles in dense vegetation. Capt. Green thanked the City Council for purchasing the equipment and said it would be a valuable tool for the Department to help save lives. 3. PUBLIC COMMENTS: Nef Cortez, President, Regional Chamber of Commerce presented a Certificate of Recognition and congratulations to M/Tye. He stated that the Regional Chamber of Commerce San Gabriel Valley extends its commitment to the City Council Members to work together toward economic prosperity for the City and its residents. 4. RESPONSE TO PUBLIC COMMENTS: None 1 1 1 DECEMBER 19, 2006 PAGE 3 5. SCHEDULE OF FUTURE EVENTS: CITY COUNCIL 5.1 Water Conservation — December 16-20, 2006 - Maintenance of the Weymouth Water Treatment Plant. 5.2 Christmas Holiday — December 25 — 26, 2006 — City offices will be closed Monday, December 25 and Tuesday, December 26, 2006 in observance of the Christmas Holiday. City offices will re -open Wednesday, December 27, 2006 at 7:30 a.m. 5.3 Holiday Tree Curbside Collection Program — December 26, 2006 — January 12, 2007 — Trees free of decorations may be left at the curb on regular trash pick up day for free pickup during this period. 5.4 New Year's Holiday — January 1, 2007 — City Offices will be closed Monday, January 1, 2007 in observance of the New Year's Holiday. City Offices will re -open Tuesday, January 2, 2007 at 7:30 a.m. 5.5 City Council Meeting — January 2, 2007 — The City Council meeting for January 2, 2007 will be adjourned to January 16, 2007. 5.6 Planning Commission Meeting — January 9, 2007 — 7:00 p.m. AQMD/Government Center Auditorium, 21865 Copley Dr. 6. CONSENT CALENDAR: C/Herrera moved, C/Chang seconded to approve the Consent Calendar as presented. Motion carried by the following Roll Call: AYES: COUNCIL MEMBERS: Chang, Herrera, Zirbes, MPT/Tanaka, M/Tye NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 6.1 CITY COUNCIL MINUTES 6.1.1 Study Session of December 5, 2006 —as Submitted 6.1.2 Regular Meeting of December 5, 2006 — as Submitted. 6.2 RECEIVED AND FILED PLANNING COMMISSION MINUTES: 6.2.1 Workshop of October 24, 2006 6.2.2 Regular Meeting of October 24, 2006 6.2.3 Regular Meeting of November 14, 2006 6.2.4 Regular Meeting of November 28, 2006 6.3 RATIFIED CHECK REGISTER — containing checks dated November 30, 2006 through December 13, 2006 for a total amount of $762,001.42. DECEMBER 19, 2006 PAGE 4 CITY COUNCIL 6.4 ADOPTED RESOLUTION NO. 2006-77: RECITING THE FACT OF THE STATEWIDE GENERAL MUNICIPAL ELECTION HELD ON NOVEMER 7, 2006 AND DECLARING THE RESULT AND SUCH OTHER MATTERS AS PROVIDED BY LAW. 6.5 APPROVED NOTICE OF COMPLETION FOR SLURRY SEAL/CHIP SEAL AREA 2 PROJECT TO AMERICAN SOUTH ASPHALT, INC. 6.6 APPROVED AMENDMENT NO.4 FOR A CONTRACT EXTENSION THROUGH DECEMBER 31, 2007 WITH HIRSCH & ASSOCIATES FOR ARCHITECTURAL SERVICES AND AN INCREASE OF THE CONTRACT BY $6,370 FOR THE SYCAMORE CANYON PARK PHASE III IMPROVEMENTS. 7. PUBLIC HEARINGS: 7.1 (a) CONSIDERATION OF SOUTH POINTE WEST FINAL ENVIRONMENTAL IMPACT REPORT (FEIR) NO. 2005-01 (SCH NO. 111118) AND ADOPTING FINDINGS OF FACT AND STATEMENT OF OVERRIDING CONSIDERATIONS, PURSUANT TO THE PROVISIONS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). THE PROPOSED PROJECT CONSISTS OF A 99 -UNIT SINGLE-FAMILY RESIDENTIAL SUBDIVISION, A PUBLIC PARK AND OPEN SPACE AREAS ON 34.52 ACRES OF LAND, LOCATED ON PROPERTY SOUTH OF LARKSTONE DRIVE, EAST OF MORNING SUN AVENUE, WEST OF BREA CANYON ROAD AND NORTHWEST OF PEACEFUL HILLS ROAD (RELATED FILES: GPA 2005-01, ZC 2006-03, DA 2005-01, SP 2005-01 VTTM 063623, CUP 2005-05, DR 2005-27 AND TP 2005-06). (b) CONSIDERATION OF GENERAL PLAN AMENDMENT NO. 2005-01, ZONE CHANGE NO. 2006-03, DEVELOPMENT AGREEMENT 2005-01, SPECIFIC PLAN NO. 2005-01, VESTING TENTATIVE TRACT NO. 0623623, CONDITIONAL USE PERMIT NO. 2005-01, DEVELOPMENT REVIEW NO. 2005-27 AND TREE PERMIT NO. 2005-06, PURSUANT TO THE SUBDIVISION MAP ACT, CITY'S SUBDIVISION ORDINANCE (TITLE 21) AND DEVELOPMENT CODE (TITLE 22, SECTIONS 22.22, 22.38, 22.48, 22.58, 22.60, 22.70 AND 22.62). THE PROPOSED PROJECT CONSISTS OF A 99 -UNIT SINGLE-FAMILY RESIDENTIAL SUBDIVISION FOR CONDOMINIUM PURPOSE, A PUBLIC PARK AND OPEN SPACE AREAS ON APPROXIMATELY 34.52 ACRES, LOCATED ON PROPERTY SOUTH OF LARKSTONE DRIVE, WEST OF MORNING SUN AVENUE, WEST OF BREA CANYON ROAD AND NORTHWEST OF PEACEFUL HILLS ROAD (RELATED FILE: ENVIRONMENTAL IMPACT REPORT NO. 2005-05). CDD/Fong presented a staff report along with a power point DECEMBER 19, 2006 PAGE 5 CITY COUNCIL presentation outlining the project. CM/DeStefano stated that South Point LLC presented the proposal to the City. He stated that South Pointe West LLC and the Walnut Valley Unified School District are co-owners of the 34- acre project site. Upon conclusion of this matter by Council, would cause the sale of the property from the School District to South Pointe West LLC. One of the benefits to the City contained in the Development Agreement is a $1.5 million contribution to the City of D. B. which staff is recommending be placed in a specific fund for use as traffic mitigation fees. In addition a component of the contribution permits the release of property restrictions and calls for the completion of Larkstone Park. The Developer has not agreed to the terms of the Development Agreement. Should the Developer agree to the terms this evening staff would recommend that the City Council take some action on this matter; however, should the Developer not agree staff would recommend that the entitlement package be moved to a future meeting such as January 16, 2007 and if appropriate, take action only on the Environmental Impact Report. With no comment from Council, M/Tye opened the Public Hearing. Ramona Voge, 21022 Silver Cloud Dr., said that during her tenure at South Pointe Middle School the issue of building on property adjacent to the School was introduced. The primary concern at that time was increased traffic. Members of the South Pointe Community Club Board conducted informal observational surveys during student peak drop-off and pickup hours and discovered that streets were congested about 20 minutes during the morning and after school hours. The conclusion was that this amount of increased traffic was insufficient to negate the building of additional school structures or the sale of property for residential development. Walnut Valley School District parents continue to fight for School District funding. Most efforts with the State have produced minimal and temporary results. This project presents a unique opportunity to acquire funding for computer technology through the sale of the School District property and to assure that students will continue to be taught at a "state -of -the art" level. Carolyn Elfelt, 21199 Silver Cloud, a 25 -year resident and current President of the Walnut Valley Unified School District, introduced Board Members Larry Redinger, Nancy Lyon and Cindy Reese. D.B. has established itself as a City with high quality schools that attract parents and students to the area. State funding is based on an antiquated formula that was conceived when this area was a ranch and for that reason, the School District does not receive as much money per student as do other districts. The District works very hard to make up for the shortfall and this project would give the District an DECEMBER 19, 2006 PAGE 6 CITY COUNCIL opportunity for cash to be appropriately invested to provide on-going funding that could be used to continue upgrading the school computers. John Corson thanked staff and the Planning Commission for their courteous assistance in helping residents learn about the project. He said he was concerned about traffic congestion and environmental impacts that would spill onto portions of unincorporated Los Angeles County (Morning Sun Ave. Shepherd Hills, Chapel Hills Dr. and Tam O Shanter Dr). He presented Council with a petition signed by 40 residents living near the project who he said were very concerned about the proposed access gate onto Morning Sun Ave. Contrary to some presentations the EIR and its technical tendencies are, in his opinion, incomplete and deficient with respect to traffic safety hazards in unincorporated Los Angeles County. The streets mentioned have no sidewalks, no stop signs and no measures commonly used to separate vehicular and pedestrian traffic and were not designed to accommodate traffic flow to the extent that would flow from such a large project. The report and testimony tend to favor the D.B. side and ignore the needs of the unincorporated side of the project and in that respect, the report and testimony is wide open to challenge. He hoped that the City Council would consider the impacts to the unincorporated side because the area will again be victimized by the discharge of traffic from the project as it was in the past by the landslide. He asked the City Council to consider blocking the access from the project onto Morning Sun Ave. Phil Dudar, Los Angeles County Department of Public Works, thanked CDD/Fong and ACM/Doyle for answering questions about this project. He said he was present at the direction of Supervisor Knabe to advocate for the residents of the Rowland Heights community that reside just west of the project. Although the County is very encouraged that the project will mitigate a landslide that has been difficult and has impacted properties along Morning Sun Dr. and depressed property values, the Department shares the concerns of the residents regarding the impacts of the proposed project, the most important being the traffic the project would generate and the impact it would have on the residents and pedestrians of Rowland Heights. The County believes these concerns are valid and respectfully requests that the traffic flow be altered to lessen the impact by restricting or limiting access onto Morning Sun Dr. toward Lemon Ave. Larry Redinger, 23999 Gold Nugget Ave., a 30 -year resident and Walnut Valley Unified School District Vice President, pointed out that in spite of the fiduciary responsibility for the 15,000 students and diminished revenues, he believed the proposed project would bring a long -overdue and significant park to the City of D.B. Once the project is completed the City will immediately receive a turnkey park, a DECEMBER 19, 2006 PAGE 7 CITY COUNCIL significant advantage to that portion of D.B. Additionally and more importantly there will be road improvements on the northern end of the site, improvements to drainage and, mitigation for the landslide and runoff. He felt the project was positive for the students and the community. Kindon Chu, Tam O Shanter Dr. and Walnut Leaf said he was opposed to the Morning Sun access due to the significant traffic impact. Amanda Owen, Attorney for the Pathfinder Community Association, asked that on behalf of the Association, approval of the project be postponed because a portion of the project lies within the Pathfinder Community Assn. The portion is geographically detached from the Association because the Walnut Valley parcel is between the three parcels that were annexed into the Pathfinder Community Association in 1981. The Developer has never contacted the Association to discuss arrangements for the Association's participation. Anyork Lee, 20545 Gemside Dr. felt that although the Project would impact the area, it should move forward because it would benefit the community. He believed the Council should support staff's recommendation to approve the Project for the benefit of the community and its students. Gayle Esfahaniha said she moved to the area about 17 years ago because of the beautiful open space. Her main concern was traffic and the 300 additional vehicles coming down Morning Sun everyday. If the School District is not being properly funded it sounds to her like a separate issue that the District needs to address rather than move to destroy the quality of life of the surrounding residents. In spite of the fact the Developer and School District assures everyone that the landslide potential will be fully mitigated she does not trust that the area would withstand 99 new homes. She also took exception to the types of homes being proposed and felt they were not appropriate for D. B. Elizabeth Kim, 1704 Morning Sun Ave. a 27 -year resident, said she was concerned about land movement now, during and after construction. She recently discovered that the brick in her two -foot rear yard retaining wall was cracking and she feared that another landslide would occur and that her home will again be threatened. She was also concerned about loss of privacy and her view. Sharon Bowler, a 32 -year resident of Morning Sun said she suffered through the prior landslides and was not in favor of the Patel project but was in favor of the proposed JCC project. If this project is not approved the School Districtwill sell the propertyto another developer DECEMBER 19, 2006 PAGE 8 CITY COUNCIL and this project and developeroffers an opportunity for the Cityto get a decent looking project. She believed JCC would fix the landslide area and not build homes on unsafe land. She also loves the open space, but would rather the land be made safe so that residents would not have to worry about another landslide occurring. She asked the City Council to approve the project and fast track the grading. She said she was concerned about a gate backing up to Mrs. Kim's property and would rather it be an emergency only gate. Mike Collins, 1612 Morning Sun Ave, a 31 -year resident, showed pictures of the area taken in 1995. He and his neighbors want a developer that can fix the area and is in favor of the proposed project with the exception of the access from Shepherd Hill. He believed this proposal was a much better project than the Patel proposal. Barbara Beach-Courschesne, 2021 Peaceful Hills Rd. a 23 -year resident, planned to put most of her comments in writing. At the November 28 Planning Commission meeting she made specific requests for information and has not yet had a response to her questions and concerns. She said she was opposed to acceptance of the El because she believed it was incomplete and misleading. She was also opposed to the development as inappropriate to the adjacent residences. She has been to most of the meetings and other than the School District has heard only three people speak positively about the proposed development. The School District presented fiduciary concerns and the taxpayers have already generously accepted two bond issues in support of the School District. She said there were funds available to school districts for computer technology as a result of the Microsoft lawsuit settlement. Will Clarke, 20881 Starshine, on behalf of the Pathfinder Homeowners Assn. respectfully asked the City Council to delay its decision until several issues could be resolved and dialogue could take place between the Pathfinder Association Board of Directors and the Developer because there were questions about the project and specifically about Lots 46 through 48 that fall under the jurisdiction of the Pathfinder Homeowners Association. Jack Moore, 1736 Chapel Heights, Rowland Heights, opposed the project and questioned whether there would be another landslide due to the natural creek at the bottom of the gully. He also complained about the traffic congestion and wondered what the residents would do in the event of emergency evacuation. Patty Ondara, 1738 Morning Sun Ave., Rowland Heights said she was very concerned about the traffic on her street and appreciated her neighbors speaking out about the problem. She asked the City Council to reconsider the Morning Sun Ave. access. DECEMBER 19, 2006 PAGE 9 CITY COUNCIL Kurt Nelson, on behalf of the applicant JCCL South Point West, thanked staff for a thorough presentation. He said that this was a difficult project to balance out because the Developer was charged with achieving a certain level of density while addressing the market demand and making the project reasonably compatible with D.B. in general and the surrounding residential community. His company has built a number of projects in D.B. over the years and believes very firmly that the local market desires detached homes with private yards however modest they might be. On first blush the price of the WVUSD and Patel property dictated attached condominiums to obtain density. Through a lot of hard work and by clustering and concentrating detached homes along the private street of the development, 16 -acres is preserved for open space in perpetuity and the project achieves a sufficient number of homes for the project to be economically feasible. By preserving contour grading in accordance with the intent of the City's Hillside Ordinance and concentrating homes in their proposed location it enhances and promotes a conventional residential feel. This is not a "San Francisco" type project. In fact, D.B. is no longer limited to ranch style R-1 one-story dwellings. He said he would prefer that those types of dwellings were feasible but they are not and if those were the only type of homes made available only multi -millionaires could afford to purchase in D.B. The project allows the Developer to build a beautiful public park that the City has sought for a number of years and the School District will realize badly needed revenue for its students. The fact is that four geotechnical firms that examined the slide area, conducted borings, set readings, etc. Everyone knows how to fix the slide but it has not been fixed because no one has spent the money necessary to adequately fix the problem. JCCL will not build on the site until the Morning Sun landslide is fully remedied. There was some confusion generated by a flyer that indicated only one gate on the Rowland Heights side on Morning Sun and that is not true. The Project design dictates that vehicles will primarily orient toward the Larkstone main gate and out to Lemon to get to the freeway. Solid estimates indicate that only about 30 percent of the project traffic would flow over the Rowland Heights neighborhood secondary gate even if left at full ingress/egress for residents only. Far from ignoring or shorting the residential neighborhoods in the Shepherd Hills and Morning Sun and Tam O Shanter Dr. areas the response to comment on the EIR and specifically the initial draft of the traffic report, the study was augmented in June 2006 with a special section to address the impacts upon those very residential streets and it details that those streets presently carry traffic far below their design capacity and that they are Level Service A in their segments and will remain so when the project is completed. He explained that the projected 300 daily vehicle traffic count is the total number of vehicle trips projected in the areas over a 24-hour period. What matters is how many more cars will drive through the neighborhood and during morning hours one DECEMBER 19, 2006 PAGE 10 CITY COUNCIL more car will drive through the neighborhood at peak hours about every two minutes. That may seem like a lot of cars but in terms of level of service and traffic, one car going by every minute or two that was not there before does not constitute a danger to life and limb. He said he understood the concerns and respected the comments. However, the number of vehicles that will traverse the area over time do not equate to injury to pedestrians. Even though the Developer did not want sidewalks inside the gated community there will be sidewalks. JCC built in "The Country Estates" forten years and there are no sidewalks in that community. JCCL agreed to staff's recommendation to include a sidewalk on one side of the street and there will be a sidewalk on the south side of Larkstone paralleling the park. If the applicant can change the Morning Sun/Shepherd Hill gate to egress only without overburdening traffic conditions on the other side and be good neighbors by doing so and if it is the City's pleasure to do so, the Developer will agree to do so. Additionally, if he were the individual who told Mrs. Kim she could own the small corner of property she wanted to own, he would make certain that she got the small square of land. Mr. Nelson said that Amanda Owen called him today. He said he was very familiar with the CC&R's for the Pathfinder Homeowners Assn. because he reviewed them with respect to the School District property some time ago. It was news to him that the three parcels referred to as the Patel pieces were thusly encumbered because he knows that the School District property that lies closer to the existing Pathfinder homes was disencumbered sometime ago and it seemed totally illogical to him that the even more distant property would remain encumbered. He read the CC&R's before coming to tonight's meeting and found no problems with restrictions on use for commercial activity. The project CC&R's will mirror the Pathfinder Assn. CC&R's in that respect. He did not know if the Pathfinder Assn. had architectural review rights but vowed to be fair in dealing with the Association. He said he was entirely comfortable that this project would meet the intent and language of architectural review if the three pieces were subject to their review. Mr. Nelson said he believed the EIR was well done and thorough. He said he was proud of the EIR with respect to biological impacts. His understanding is that with respect to any statements of overriding considerations, the biological impact is cumulative and that this project, however small has absolutely no significant impact on biological resources. One-tenth of one acre of affected water flow across the site will be addressed to the satisfaction of the Department of Fish and Game. When the project is completed and all of the crib wall slope areas grow in with drought tolerant landscape it will look beautiful and many birds including migratory birds will return to the site. Mr. Nelson said he concurred with the conditions and asked that the Council move forward with staff's recommendation for approval. He asked for time to review the final language of the Development DECEMBER 19, 2006 PAGE 11 CITY COUNCIL Agreement. He said he had no problem with the aggregate numbers of special and direct benefit and would appreciate additional time to review details of when and how. He said he was totally comfortable with the fairness of the City Council and staff. He respectfully requested approval of Certification of the EIR, Map, Conditional Use Permit and move consideration of the Development Agreement to the next City Council meeting. C/Chang asked Mr. Nelson if he would agree to make the Morning Sun gate as an "emergency" gate only. Mr. Nelson responded that it was his understanding from talking with Supervisor Knabe's office his engineers and staff, making that gate an "emergency only" gate would result in bad traffic engineering for an impact that does not exist. Mr. Nelson said that more benefit would be derived from making the gate an "exit only" gate for the project residents without unduly burdening the residents on the other side near the main gate. He said he would defer to staff and the traffic engineer for advice on the matter. C/Chang asked if Mr. Nelson was open to resolving land issues with the Pathfinder Homeowners Assn. Mr. Nelson responded that if it were an encumbrance the Developer would be civilly bound to do so. Mr. Nelson explained to C/Chang how the condition for the sidewalk within the project area would be realized. Mr. Nelson reiterated to C/Chang that he would remedy the landslide. C/Herrera asked CM/DeStefano if the Pathfinder Homeowner Assn. as an issue that would have to be resolved prior to approving the resolutions before the Council. CM/DeStefano responded that it was not. CM/DeStefano responded to M/Tye that staff could support an approach to conditioning the project to make the Morning Sun gate an "exit only" gate and incorporate the provision within the CC&R's along with a provision to install programmable gates that would restrict the use of the access point. The Developer has indicated a desire for an "exit only' gate and staff would prefer that compromise to complete restrictions to Morning Sun that would place an unnecessary burden on Lemon Ave. at Golden Springs Dr. CM/DeStefano responded to M/Tye that CC&R's are private contractual relationships between the association and the members thereof and that the overwhelming majority of city governments do not engage in enforcement of private contracts between private parties. With respect to Mrs. Beach- DECEMBER 19, 2006 PAGE 12 CITY COUNCIL Courchesne's request for information that was not provided he is not personally aware of what requests were made in order to determine whether an answer was provided. C/Herrera moved, MPT/Tanaka seconded, to Adopt Resolution No. 2006-78 certifying the Environmental Impact Report. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Herrera, es, Tye NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None C/Herrera moved, C/Tanaka seconded to continue the Public Hearing on Items a) through f) to January 16, 2007 at 7:00 p.m. Motion carried b the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Herrera, es, M/Tye NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 8. COUNCIL CONSIDERATION: 8.1 CITY COUNCIL COMMITTEE APPOINTMENTS: ORGANIZATION DELEGATE ALTERNATE California Contract Cities Association Foothill Transit Board Four -Corners Transportation Policy Group Greater L.A. County Vector Control District Joint Powers Insurance Authority L.A. County Sanitation District No. 21 L.A. County City SelectionCommittee League of CA Cities — L.A. County Division San Gabriel Valley Council of Governments San Gabriel Valley Economic Partnership Southern California Assn. Of Governments (SCAG) Tres Hermanos Conservation Authority Tye Herrera Herrera Audrey Hamilton Zi rbes Tye Tye Tanaka Herrera Chang Tanaka Herrera/Zirbes Wildlife Corridor Conservation Authority (WCCA) Tanaka Wildlife Corridor Conservation Authority Advisory Davis STANDING COMMITTEES D.B. Community Foundation Tye Chang Tye Zi rbes Tye Zi rbes Tanaka Tye Tye Tanaka Chang Tye Chang Herrick LIAISON Chamber of Commerce Tanaka DECEMBER 19, 2006 PAGE 13 PUSD/City Tanaka CITY COUNCIL Senior Citizen Tanaka AD HOC COMMITTEES Sphere of Influence/Annexation Herrera Zirbes WVUSD/City Herrera City Council Goals/City Manager Evaluation Tye Tanaka presented by M/Tye. Motion carried by the following Roll Call vote: Economic Development Zirbes Chang Industry East Development Advisory Committee Herrera Zirbes Legislative Herrera Tanaka Library Task Force Zirbes Chang Neighborhood Improvement Zirbes Chang LIAISON Chamber of Commerce Tanaka Chang PUSD/City Tanaka Chang Senior Citizen Tanaka Herrera Sphere of Influence/Annexation Herrera Zirbes WVUSD/City Herrera Tye C/Herrera moved, MPT/Tanaka seconded to approve the appointments as presented by M/Tye. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Herrera, Zirbes, MPT/Tanaka, M/Tye NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 8.2 ADOPT RESOLUTION NO. 2006-82: APPROVING A PLANNING AND PRE -ANNEXATION AGREEMENT BETWEEN THE CITY OF DIAMOND BAR, CALIFORNIA AND AERA ENERGY LLC. CM/DeStefano stated that this agreement would provide for consideration of annexing a vacant 2000 -acre property generally located between the boundaries of the City of D.B., unincorporated area of Rowland Heights and the Orange County/Los Angeles County line. ACM/Doyle reported that the item before Council is a planning and pre- annexation agreement between the City and Aera Energy LLC, aka the developer. Aera (formerly Shell Oil) owns approximately 3000 acres south of the City that has been used as a working oil field for the last 100 years. The oil field is coming to the end of its life schedule and the property owner is considering a development project for the site. The proposed project includes a variety of residential housing products, commercial properties, parkland, considerable open space, a new fire station and a new K through 8 School. As a result of discussions between the City and the developer there is now a mutual desire to annex a portion of the proposed development project into the City and for the developer to process a portion of the project through the City for entitlement purposes. The document before the Council tonight for which staff is recommending approval is a resolution authorizing the City to enter into a pre -annexation agreement with Aera. The agreement represents a formal roadmap for the City and developer to proceed through an entitlement process and ultimately for the City to consider annexing a DECEMBER 19, 2006 PAGE 14 CITY COUNCIL portion of that project with the remaining acres to be processed by LA and Orange Counties. He emphasized that this agreement does not commit the City to any approvals of the project or any discretionary approvals that the Council holds within its power. This is merely an agreement for the City to proceed through a lengthy process that would include numerous opportunities for public participation and comment on various aspects of the proposed project and the elements contained therein. The City welcomes all public participation from D.B. as well as from its neighboring community of Rowland Heights. In addition to the aforementioned, the agreement guarantees that the developer will reimburse the City for all costs associated with proceeding through this lengthy process. If Council approved the agreement tonight the City will commence to develop and Environmental Impact Report including all CEQA required public participation; General Plan Amendment including all required public hearings before the Planning Commission and/or City Council; development of a Specific Plan; creation of a Master Tentative Tract Map; and, negotiating a development agreement between the City and the developer. Ultimately, the City would need to develop a property tax sharing agreement with the County of Los Angeles and file the appropriate LAFCO applications for what ultimately would be annexation. This pre -annexation agreement includes the following elements: The term of the agreement is for five years; this pre -annexation development agreement puts the developer on notice that the City has concerns that will need to be addressed throughout the process, one of which is to make sure that the project's fair -share of affordable housing (workforce, senior or other such housing) is built within the City limits. The developer may encumber the property with public financing mechanisms such as Community Facilities Districts or Landscaping infrastructure a and/ Lighting Assessment Districts to help pay r the maintenance and long-term care of the medians, landscape or other types of landscape amenities that are ultimately put in place. ACM/Doyle explained that the developer has the ability to terminate the agreement within 10 days of notice to the City and would be required to pay any costs associated with the process up to the point of providing notice. The City does not have that type of discretionary termination clause. However, the City has all of its discretionary approvals within its rights. As such, the City may rlterminate agreement s no onany of he discetionary permitsor approas that the devoper seek George Basey, Vice President, Aera Energy LLC, made a power point presentation outlining the proposed project area. He commended staff for working over the past years to prepare the planning and pre -annexation agreement. The proposed project is approximately 3000 acres with the SR57 running along the easterly portion of the property. Harbor Blvd. and Fullerton Rd. confines the property on the west boundary and the SR60 is to the north. Ninety percent of the property is in Los Angeles County and 10 percent lies in Orange County. A portion of the property east of the SR57 (300 acres) lies within D.B.'s Sphere of Influence, along with some area 1 DECEMBER 19, 2006 PAGE 15 CITY COUNCIL south of the City. Aera remains committed to ensuring that more than half of its land will be set-aside as permanent open space at no cost to the taxpayers. In addition, about 700 acres is dedicated to an unimpeded open space linkage through the property to facilitate wildlife movement to off-site protected lands. A maximum of 3600 residential units are proposed for the entire property. Ingress for the eastern portion is proposed from the Brea Canyon Rd. inter -change area and Tonner Canyon Interchange area in Orange County. Minor road connections are also proposed from Harbor Blvd. and Berry St. in Orange County. No roads are proposed to connect through the property. Furthermore, there are no public road connections being proposed from the property north to Pathfinder Rd. Aera is excited to work with D.B. toward the ongoing planning of a portion of the property subject to the agreement before the Council tonight. Aera respectfully requests the Council's approval of the Planning and Pre -Annexation Agreement and remain committed in efforts to reach out to all of the other stakeholders willing to work and dialogue with Aera. C/Herrera asked for clarification about roads being proposed from the project into LaHabra Heights. Mr. Basey responded that no roads were proposed to go from the project into LaHabra Heights and pointed to an area proposed to accommodate a total of 75 residential units that would take access onto Harbor Blvd., an area that is outside of the D.B. planning area and under the purview of Los Angeles County. C/Herrera asked if any part of the D.B. proposal included roads leading into the City of LaHabra. Mr. Basey responded "no." C/Herrera asked if there were any roads that would lead into Rowland Heights. Mr. Basey responded "no." C/Herrera asked if there were any roads that would lead into Brea. Mr. Basey responded "no." M/Tye asked Mr. Basey to again display the graphic that showed a road leading west on Brea Canyon Rd. into Brea. Mr. Basey explained that the project area stops at the County line and those connections would be on the Orange County side. In response to CM/DeStefano Mr. Basey displayed an aerial photograph that defined the area that was the subject of the Planning Agreement before the DECEMBER 19, 2006 PAGE 16 CITY COUNCIL Council. The area is roughly 1940 acres of the 3000 acres and the balance would remain with Los Angeles and Orange Counties. M/Tye asked for public comments. Robert Lewis, 2231 No. 8 Fullerton Rd. and Vice President of the Rowland Heights Water District said that statements he makes tonight are his own and are not to be construed as opinions offered by the Rowland Heights Water District. Mr. Lewis said he was disappointed because Aera had stressed that it was "committed to building a new community that will balance the interests, desires, needs of the environment, our neighbors, local officials and our future community residents. Nothing short of this will do." The fact that there is now a Planning and Pre -Annexation Agreement is, in his opinion, an attempt to indicate that perhaps the process closed after years of discussing a very good project. Rowland Heights is also interested in controlling its future and suggested that D.B. think bigger and bolder and annex Rowland Heights into D.B. in its entirety which would render D.B. one of the 10 largest cities in the County of Los Angeles and greatly enhance its fiscal base and resources to address its traffic problems, its environmental needs, housing needs and all other common problems. Aera is offering to pay the cost of the planning and annexation. What he is suggesting is that instead of adopting this agreement go back to staff and request a discussion of annexing the entire revenue -rich community service district introducing economy of scale and unifying communities into one City staff with one agenda and one direction to move forward to address all problems in the regional area of the San Gabriel Valley. Lawrence Permaul, Senior Counsel, Colantuono & Levin, representing the Hillside Open Space Education Coalition (HOSEC), an organization of neighboring cities and communities including Brea, LaHabra, LaHabra Heights and Whittier as well as the Hacienda Heights Improvement Association and the Rowland Heights Community Coordinating Counsel stated that HOSEC is dedicated to the preservation of open space in the hillside areas bordering Los Angeles and Orange Counties in order to safeguard the environment, maintain high quality of life and reduce traffic congestion. Mr. Permaul said he provided CA/Jenkins with a letter that more thoroughly explained the position of HOSEC. HOSEC believes that the annexation of the Aera property to D.B. for development of thousands of homes and hundreds of thousands of square feet of commercial and institutional uses in an environmentally sensitive and visually prominent hillside area is of grave concern. HOSEC learned of this agenda item within the last few days and does not believe there has been adequate time for interested stakeholders to review the information and properly respond. Some of the exhibits that were represented to be attached to the agreement were not available online and were not available in the short period of time HOSEC had to review the information. These concerns have been echoed by Supervisor Don Knabe's office and despite the fact that there has been little time to review the information and respond accordingly there seems to 1 1 DECEMBER 19, 2006 PAGE 17 CITY COUNCIL be organized opposition to the particular agreement that is before the Council tonight. He believed that if Council were to postpone decision on the agreement and seek additional public input it would find many concerns among constituents and stakeholders. Dickie Simmons, representing Supervisor Knabe, said he earlier this evening presented each Council Member with a copy of a letter that the Supervisor respectfully requested he read tonight to wit: "The Aera project has generated much concern and conversation over the past few years on plans to develop properties known as the Shell properties in the southeastern portion of Los Angeles County. Although conceptual plans have been discussed there still has not been any definitive plan presented for public review and comment. I know that your city has previously expressed a desire to explore the possibility of annexation of the Aera properties to the City of Diamond Bar and that this pre -annexation agreement is on tonight's agenda. I must say that I am very disappointed with the notice and timing of this agenda item. My office did not receive notice until after the item had been formally placed on the agenda. I would have appreciated the opportunity to reach out to my constituents to make sure that they were aware of the item, particularly the week before Christmas. As you move forward with your plans I would like to respectfully request that this Council do everything in its power to ensure the timely and thorough notification of these processes as you proceed, that they do not circumvent our residents of Rowland Heights, Hacienda Heights and surrounding communities, and that adequate notice and opportunity to discuss in open forums are made available to one and all so that there is a complete airing of the Aera project during each stage of the annexation entitlement process. My position on land development remains as clear tonight as it has for years - there must be a clear balance between construction and development and the preservation of the very few large tracts of open space that we have left in this part of the County. Any project that would call that balance into question including the development of the Aera land needs thorough examination before proceeding. Thank you for your consideration. Sincerely, Don Knabe." Lynn Evancamp, Rowland Heights, said she did not have a clear picture of where the traffic would flow as a result of the project and that Rowland Heights residents are concerned about traffic. CMIDeStefano responded to speaker Evancamp's concerns about traffic, that as D.B. understands the project through concept drawings shown this evening, the road network shown in the drawing indicates that all of the traffic flowing to and from the site would come from Brea Canyon Rd. and obviously, Brea Canyon Rd. as it sits today would not be sufficient to handle that level of traffic and would appear that improvements would be necessary for Brea Canyon Rd. Staff has not seen environmental material that the developer has created. Those documents are part of the next steps within the environmental documents and staff presumes the documentation would contain sufficient traffic studies to understand any and all impacts and DECEMBER 19, 2006 PAGE 18 CITY COUNCIL proposed mitigation measures. Mr. Basey stated that a lot of the details and information would be forthcoming during the planning process. In general, the concept would focus circulation from the project primarily onto Brea Canyon Rd. The Environmental Impact Report will examine the existing conditions of the roadway, layer in the proposed traffic volumes from the project, identify levels of impact and identify the packages of mitigations which the project would need toerearl� some oY p°hi�rut his comments were regarding P�ontsofngress/egesstotesite CA/Jenkins responded to questions and comments made by the attorney representing HOSEC. (Verbatim) Mr. Doyle In his preliminary comments was exactly right in describing this agreement as a "roadmap." It is in fact nothing more than a path, a process. And, in particular, it does not approve anything. if you approve this agreement and you do nothing else there will be no development of any kind - there will be no change in the physical environment. And it is for that reason that it is my view that this is not a project within the meaning of CEQA and that this agreement is specifically exempt from the requirements of CEQA. However, note that each and every discretionary decision that would have to be made once we go down the path contemplated in this process would be a project within the meaning of CEQA and hence, obviously, we're going to have to comply with CEQA and we're going to have to do it earlier rather than later. And I think our Supervisor Knabe should be satisfied to know that each and every step of the way we will be obligated to give full notice to conduct public hearings at which all members of the public and all interested parties will have the opportunity to participate. In effect we have a property owner who owns a piece of property outside our boundaries and who has a proposed project. He has come to us and said would you consider taking our land and our project into your City and our response by way of this agreement is simply said, we will consider it. We won't guarantee anything but will consider it — we want you to pay the majority of our costs in considering it — we may deny it — we may not go very far into the process but we will consider it. As we consider it we will of course comply with CEQA. In that regard I just want to point the City Council to Section 6.05 of the agreement, which appears on Page 13 and is — the heading of which is "Nature of Commitment." And this paragraph says that this agreement represents the City's commitment only to plan, review and consider the Phase 1 Approvals, the Phase 2 Approvals, and the Phase 3 Approvals - collectively, the "Project Approvals." Nothing in this agreement is or should be construed to be a covenant, promise or commitment by al or City or any agency, board or commission of the City to grant any project approval or to enter into the development agreement on any p conditions. Nothing herein can be deemed a covenant, promise or commitment by Developer, or its successors in interest, to annex the Aera Project Area, or any part thereof, or to construct any Project Improvements on the Project Area. The purpose of this agreement is merely to set forth the Parties' understanding regarding the manner in which the Parties intend to 1 1 DECEMBER 19, 2006 PAGE 19 CITY COUNCIL proceed with cooperative efforts to provide a planning and processing framework in furtherance of the Project, reserving final discretion and approval of the Project Approvals to the Diamond Bar City Council, subject to environmental review in accord with CEQA." And that paragraph 6.05 really says it all very succinctly. Some portions of the letter from the attorneys for HOSEC simply reflect the author's opinion about the merits of the agreement and this opinion is expressed in isolation, in a vacuum without the benefit of having sat down with the representatives of Aera overthe course of what must be two orthree months of serious negotiations in a process where there was give and take. While it is very nice that someone comes along Monday morning and says well, if I had done it I would have done it differently. Well, that's fine but that's not what we have here so choices have been made along the way. In other respects the letter really grossly misrepresents the agreement and mischaracterizes many of its terms. And since this is really my only public opportunity to comment on that I would just like to take a few more moments if you'll indulge me just to pointed out a couple of those mischaracterizations which I think are really pretty egregious under the circumstances. For example, on Page 2 the first bullet point says that the agreement does not discuss alternatives. Well, this is not an EIR. It will be an EIR and it will discuss alternatives to the project — it has to discuss alternatives to the project. That's not the purpose of this agreement. Second, it says the agreement attempts to specify mitigation measures for the project. No, it doesn't. The letter states that Section 4.03 commits the City to requiring no mitigations beyond those stated in the article. This is a misreading of Section 4.03. If we turn to Section 4.03 we'll see it refers only to "public facilities" — public facility mitigations. It says nothing about mitigations of the project itself. The next bullet point on Page 2 says Section 4.08 appears to pre -commit you to waive the requirements of your grading and other ordinances. Well, it doesn't appear to do that at all. In fact, if you read Section 4.08 it says that some aspects of the project may be inconsistent with the City's grading ordinance and other ordinances and as part of the project applications the applicant may ask the City Council to amend some of its ordinances and the City Council will consider it. What does that mean? It means you'll consider it and you'll either say yes or no within your absolute discretion and nothing can bind your discretion. There is nothing in 4.08 that appears to pre -commit you to waive the requirements of your grading ordinance and frankly I don't know why that sentence appears in this letter at all. On Page 3 the letter states the agreement gives the developer too much control over the EIR. This is entirely the author's opinion. What is contemplated here as far as the preparation and review of EIR provides that the City will give its complete independent review of the EIR, which is what CEQA requires and is a perfectly acceptable and perfectly lawful methodology for the review and certification of an EIR. There is absolutely nothing inappropriate about it. DECEMBER 19, 2006 PAGE 20 CITY COUNCIL On Page 4 the first bullet point makes reference to the "assignment" indicating that the paragraph allowing for assignment would allow the developer to take all the benefit of this deal. This is a complete misstatement. There is no "deal" involved here. Once again, this agreement provides for a process — it doesn't make a "deal." Any development agreement that is negotiated with this developer, if we even get that far, will have a much different type of assignment clause. For purposes of a pre -annexation agreement nothing further or more elaborate than what is included in this agreement is necessary inuse we have reserved the right to exercise our discretion at any pointe process if we determine not to go forward with any of the discretionary approvals. Consequently, if this developer is to assign it to another developer it's not nearly the concern it would be if we had negotiated a "development agreement" that accorded the developer true vested rights. Then we would want to have more say over an assignment. The third bullet point regarding public debt is very misleadingly worded. As Mr. Doyle indicated, there is a possibility that this developer would want to have a Mello -Roos District all over the property. The reference to "public debt" contains an inference that somehow our general public will be saddled with some new debt when in fact a typical Mello -Roos District of the kind contemplated, a Community Facilities District, would merely place debt on the parcels within the project only and no place else. The fourth bullet point on Page 4 criticizes the agreement for giving the developer complete control over the phasing of the project. I would represent to you that every private project and every development agreement that is approved gives the developer control over phasing. After all, it's the developer's project. The whole point of a development agreement is to allow the developer to phase a project over time based on market conditions, financing and other considerations. Furthermore, nothing in this agreement sets forth what the terms of the ultimate development agreement in this regard are going to be. The last bullet point on Page 4 states that Section 4.10.7 limits Diamond Bar's power to condition build out of the project to protect the health and safety of the community. challenge you to read Section 4.10.7 and come to that same conclusion. On Page 5 the author references Section 6.03(c) requiring the City to indemnify the developer for any negligence by the City in the entitlement process. Again, I would urge you to read Section 6.03(c), which is a standard indemnification requirement that simply says virtually the opposite — ,.except for the negligence or willful misconduct of the City the developer must defend and indemnify the City from and against any and all damages, etc. etc." What does that mean? It means that the developer is obligated to defend and indemnify the City with regard to any liability except for liability created by the City's negligence. That's a standard provision in most agreements. Nothing in Section 6.03(c) says anything about negligence in the entitlement process. Frankly, I'm not aware of what type of negligence might arise in an entitlement process. I'm not sure why that criticism is even in the letter. DECEMBER 19, 2006 PAGE 21 CITY COUNCIL In conclusion I don't believe that the protests made by HOSEC and its attorneys has merit. I don't believe that this agreement is project within the meaning of CEQA. I think the comments are mistaken, erroneous or reflect a mischaracterization of the agreement or reflect simply the author's disagreement with various points that were negotiated during the negotiation process. I'd be happy to answer any questions that the Council may have about this. M/Tye agreed with CA/Jenkins. MPT/Tanaka said he was confident with staff's reports and interpretation by the City's legal counsel that all the Council was approving at this point was a process, and that there would be ample opportunity for public input and for comments from interested stakeholders. He was also comfortable that there would be no financial impact to the City. C/Herrera agreed with MPT/Tanaka's comments and said that for some individuals to claim they were caught unaware and did not know about the Aera project was quite unreasonable since for the 11 years she has served on this City Council people have talked about the Aera development. HOSEC was created two years ago by a coalition of cities that wanted to stop the development that everyone knew was coming. C/Herrera moved, C/Chang seconded, to Adopt Resolution No. 2006-79 Approving a Planning and Pre -Annexation Agreement between the City of Diamond Bar, California and Aera Energy LLC. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Herrera, MPT/Tanaka, M/Tye NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Zirbes 9. COUNCIL SUBCOMMITTEE REPORTS/COUNCIL MEMBER COMMENTS C/Chang thanked residents for their input this evening and encouraged them to participate in public meetings as often as possible. Last week the City recognized and thanked its Senior Volunteers for assisting the City and helping to deter crime. He thanked staff for the wonderful community Snow Fest event. He and other Council Members attended the Senior's Christmas party. Yesterday the Council held a special economic development meeting to discuss ways in which various sites could be used to help revitalize the City's economy. He wished everyone Happy Holidays and a very Happy, Healthy and Prosperous 2007. DECEMBER 19, 2006 PAGE 22 CITY COUNCIL C/Herrera stated that Council Members attend many community events in the City and that the City's staff and City Council look very careful at all issues that come before the City as to how they could benefit the residents of D.B. Council and staff have no interest in making decisions that may hurt the residents and the City, and always have the best interest of the community at hand and heart. Opportunities come with annexing the Aera property. A resident asked where all of the cars would go. Most individuals travel to their jobs and a great majority of people work in Orange County. Many are attempting to find affordable housing and the State of California is pressing California cities to plan for some affordable housing. The City of Industry has 85,000 jobs and very little housing so most live in other areas. So, there are all kinds of opportunities for the City and the region to reduce traffic if the workforce can live closer to their places of employment and perhaps travel via MTA or Foothill Transit and she has recently spoken to these agencies about such workforce movement possibilities. There will be numerous public hearings on all these issues and there will be ample opportunity for all residents and stakeholders to participate in the process. She wished everyone safe holidays and a Merry Christmas. MPT/Tanaka thanked residents who watch the meetings on cable and come before the City Council to express their concerns and feelings about projects and issues that concern the City. He and C/Herrera attended the installation of officers for the Korean -American Federation of Eastern Los Angeles. He and his colleagues attended the Volunteer Patrol recognition with Lt. Maxey presiding. He attended the Tri -Counties Association of Realtors Installation and Recognition luncheon. C/Tanaka further stated that he attended the Breakfast with Senator Margett. He thanked staff and especially the Community Services staff for an excellent Snow Fest event and thanked Allison Meyer for coordinating the holiday craft fair at the Diamond Bar Center. The Diamond Bar Performing Arts had a fundraising dinner at the Diamond Bar Center and congratulated the Diamond Bar High School students. Industry held a Manufacturer's Counsel Christmas luncheon for which the Citrus College Singers provided the Christmas program. Armstrong Elementary School held a Christmas program for the first and second graders; The D.B. Seniors put on a very well attended Christmas luncheon with the largest ever participation. The San Gabriel Valley Chamber held its Christmas mixer and co -hosted the United States Marine Corps Toys for Tots Drive. He attended the Pantera Park batting cages meeting and that several residents participated. He visited both Tiny Tots programs during Santa Claus visits at Heritage Park and Pantera. The Diamond Ranch High School Band, Orchestra and Choir held a Breakfast Santa fundraiser this past weekend which was very well attended. There was entertainment throughout the morning with the musical programs. He thanked all of the students from D.B.H.S. who participated in tonight's meeting. He and his wife Wanda wished everyone a Merry Christmas and a happy and healthy New Year. 1 1 u DECEMBER 19, 2006 PAGE 23 CITY COUNCIL M/Tye said that the students who remained for the entire City Council meeting tonight should receive double class credit. He said he appreciated C/Herrera's comments because the Council is charged with listening and considering all aspects of an issue and must respond to the wishes of the residents who are the eyes and ears of the City. He asked that residents not be fooled into thinking that their Council and staff would be violating community wishes and policies. The goal of this City is to make the community better and it was very disappointing to hear that many residents received mailings from unnamed individuals who sent out unsigned letters containing false and misleading information about the D. B. Golf Course. He said that residents could reach City Council members or staff member and make their concerns known and have their questions and concerns addressed and not fall victim to dishonest rhetoric designed to cause dissention within the community. M/Tye congratulated CSD/Rose and his staff on the Snow Fest event and transforming Pantera Park into a winter wonderland! He announced that D.B. resident Ryan Smith (No. 28) would be playing for the Florida Gators. His family has lived in D.B. for 20 years. Ryan attended Golden Springs Elementary and Lorbeer Middle School, played soccer and Little League Baseball in the City. Lance and Marlene Smith would also like everyone know that their daughter Megan who cheered for Ryan during his years in D.B. is attending Clark Atlanta University in Atlanta. ADJOURNMENT: With no further business to conduct, M/Tye adjourned the regular City Council meeting at 10:10 p.m. to January 16, 2007 in memory of staff memberAl Rumsey's son and in honor of the men and women serving their country who are away from their friends, families and homes during this holiday season. TOMMY CRIBBINS, CITY CLERK The foregoing minutes are hereby approved thisl6th day of January , 2007. —2 ST , AY R