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HomeMy WebLinkAbout040715 - Agenda - Regular MeetingCity Council Agenda Tuesday, April 7, 2015 6:30p.m. — Regular Meeting The Government Center South Coast Air Quality Management District/ Main Auditorium 21865 Copley Drive, Diamond Bar, CA 91765 Steve Tye Nancy A. Lyons Mayor Mayor Pro Tem Carol Herrera Jimmy Lin Jack Tanaka Council Member Council Member Council Member City Manager James DeStefano • City Attorney David DeBerry • City Clerk Tommye Cribbins Copies of staff reports or other written documentation relating to agenda items are on file in the Office of the City Clerk, and are available for public inspection. If you have questions regarding an agenda item, please contact the City Clerk at (909) 839-7010 during regular business hours. In an effort to comply with the requirements of Title II of the Americans with Disabilities Act of 1990, the City of Diamond Bar requires that any person in need of any type of special equipment, assistance or accommodation(s) in order to communicate at a City public meeting, must inform the City Clerk a minimum of 72 hours prior to the scheduled meeting. Have online access? City Council Agendas are now available on the City of Diamond Bar's web site at www.CityofDiamondBar.com Please refrain from smoking, eating or drinking in the Council Chambers. The City of Diamond Bar uses recycled paper and encourages you to do the same. DIAMOND BAR CITY COUNCIL MEETING RULES Welcome to the meeting of the Diamond Bar City Council. Meetings are open to the public and are broadcast live on Time -Warner Cable Channel 3 and Verizon ROS television Channel 47. You are invited to attend and participate. PUBLIC INPUT Members of the public may address the Council on any item of business on the agenda during the time the item is taken up by the Council. In addition, members of the public may, during the Public Comment period address the Council on any Consent Calendar item or any matter not on the agenda and within the Council's subject matter jurisdiction. Persons wishing to speak should submit a speaker slip to the City Clerk. Any material to be submitted to the City Council at the meeting should be submitted through the City Clerk. Speakers are limited to five minutes per agenda item, unless the Mayor determines otherwise. The Mayor may adjust this time limit depending on the number of people wishing to speak, the complexity of the matter, the length of the agenda, the hour and any other relevant consideration. Speakers may address the Council only once on an agenda item, except during public hearings, when the applicant/appellant may be afforded a rebuttal. Public comments must be directed to the City Council. Behavior that disrupts the orderly conduct of the meeting may result in the speaker being removed from the Council chambers. INFORMATION RELATING TO AGENDAS AND ACTIONS OF THE COUNCIL Agendas for regular City Council meetings are available 72 hours prior to the meeting and are posted in the City's regular posting locations, on DBTV Channel 3, Time -Warner Cable Channel 3, ROS television Channel 47 and on the City's website at www.ci.diamond-bar.ca.us. A full agenda packet is available for review during the meeting, in the foyer just outside the Council chambers. The City Council may take action on any item listed on the agenda. ACCOMMODATIONS FOR THE DISABLED A cordless microphone is available for those persons with mobility impairments who cannot access the podium in order to make a public comment. Sign language interpretation is available by providing the City Clerk three business days' notice in advance of a meeting. Please telephone (909) 839-7010 between 7:30 a.m. and 5:30 p.m. Monday through Thursday and 7:30 a.m. to 4:30 p.m. on Fridays. HELPFUL PHONE NUMBERS Copies of agendas, rules of the Council, CassetteNideo tapes of meetings: (909) 839-7010 Computer access to agendas: www.ci.diamond-bar.ca.us General information: (909) 839-7000 CITY OF DIAMOND BAR CITY COUNCIL AGENDA April 7, 2015 CALL TO ORDER: PLEDGE OF ALLEGIANCE: INVOCATION: ROLL CALL: Next Resolution No. 2015-10 Next Ordinance No. 04(2015) 6:30 p.m. Mayor Pastor Bob Stebe, Northminister Presbyterian Church Council Members Herrera, Lin, Tanaka, Mayor Pro Tem Lyons, Mayor Tye APPROVAL OF AGENDA: Mayor 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 Proclaiming April, 2015 as DMV/Donate Life California Month. 1.2 Proclaiming April 24, 2015 as Arbor Day. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: 3. PUBLIC COMMENTS: "Public Comments" is the time reserved on each regular meeting agenda to provide an opportunity for members of the public to directly address the Council on Consent Calendar items or matters of interest to the public that are not already scheduled for consideration on this agenda. Although the City Council values your comments, pursuant to the Brown Act, the Council generally cannot take any action on items not listed on the posted agenda. Please complete a Speaker's Card and give it to the City Clerk (completion of this form is voluntary). There is a five-minute maximum time when addressing the City Council. Written materials distributed to the City Council within 72 hours of the City Council meeting are available for public inspection immediately upon distribution in the City Clerk's Office at 21810 Copley Dr., Diamond Bar, California, during normal business hours. APRIL 7, 2015 PAGE 2 4. RESPONSE TO PUBLIC COMMENT: Under the Brown Act, members of the City Council may tbeN respond to public comments but no extended discussion and no action on such matters may take place. 5. SCHEDULE OF FUTURE EVENTS: 5.1 Traffic and Transportation Commission Meeting — April 9, 2015 — 7:00 p.m., Windmill Community Room, 21810 Copley Drive. 5.2 City Birthday Celebration — Saturday, April 11, 2015 — 11 am to 5 pm. (Rides open until 6 pm) Pantera Park, 738 Pantera Drive. 5.3 Planning Commission Meeting — April 14, 2015 — 7:00 p.m., Windmill Community Room, 21810 Copley Drive. 5.4 Pop -Up City Hall — April 18, 2015 — 9:00 a.m. — 11:00 a.m. — Towne Center, 1128 S. Diamond Bar Boulevard. 5.5 City Council Meeting — April 21, 2015 — 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Drive. 6. CONSENT CALENDAR: 6.1 City Council Minutes — Regular Minutes of March 17, 2015. Recommended Action: Approve. Requested by: City Clerk 6.2 Planning Commission Minutes: (a) Regular Meeting of January 27, 2015. (b) Regular Meeting of February 24, 2015. (c) Regular Meeting of March 10, 2015. Recommended Action: Receive and File. Requested by: Community Development Department 6.3 Parks and Recreation Commission Minutes — Regular Meeting of February 26, 2015, Recommended Action: Receive and File. Requested by: Community Services Department APRIL 7, 2015 PAGE 3 6.4 Traffic and Transportation Commission Minutes: (a) Regular Meeting of January 8, 2015. (b) Regular Meeting of February 12, 2015. Recommended Action: Receive and File. Requested by: Public Works Department 6.5 Ratification of Check Register — Dated March 12, 2015 through April 1, 2015 totaling $1,005,308.73. Recommended Action: Ratify. Requested by: Finance Department 6.6 Treasurer's Statement — Month of February, 2015. Recommended Action: Approve. Requested by: Finance Department 6.7 Approve Contract Amendment No. 1 with Tait and Associates, Inc. for the Comprehensive Groundwater Drainage Study in the Amount of $9,070. Recommended Action: Approve. Requested by: Public Works Department 6.8 Approve Contract Amendment No. 1 for Stormwater Compliance and Environmental Engineering Services with John L. Hunter & Associates for a Total Amount of $67,133 Plus a Contingency Amount of $6,000. Recommended Action: Approve. Requested by: Public Works Department 6.9 Approval of FY 2015-16 City Council Goals and Objectives. Recommended Action: Approve. Requested by: City Manager APRIL 7, 2015 PAGE 4 6.10 Adopt Resolution No. 2015 -XX: Accepting the Easement for Public Street and Slope Purposes Over the Brea Canyon Flood Control Channel Located at the Northeast Corner of Diamond Bar Boulevard and Brea Canyon Road Intersection. Recommended Action: Adopt. Requested by: Public Works Department 6.11 Authorize City Manager to Enter into a Contract for Annual Independent Audit Services with Lance, Soll & Lunghard, LLP for Fiscal Years 2014115 through 2016117 with an Option for Two One Year Extensions. Recommended Action: Authorize. Requested by: Finance Department 6.12 (a) Adopt Resolution No. 2015 -XX: Declaring the City's Intention to Levy and Collect Assessments for Landscape District No. 38 and Direct the City Clerk to Advertise the Public Hearing Before the Council at the May 19, 2015 Regular Meeting. Recommended Action: Adopt. (b) Adopt Resolution No. 2015 -XX: Declaring the City's Intention to Levy and Collect Assessments for Landscape District No. 39 and Direct the City Clerk to Advertise the Public Hearing Before the Council at the May 19, 2015 Regular Meeting. Recommended Action: Adopt. (c) Adopt Resolution No. 2015 -XX: Declaring the City's Intention to Levy and Collect Assessments for Landscape District No. 41 and Direct the City Clerk to Advertise the Public Hearing Before the Council at the May 19, 2015 Regular Meeting. Recommended Action: Adopt. Requested by: Public Works Department 7. PUBLIC HEARINGS: None. 8. COUNCIL CONSIDERATION: None. 9. COUNCIL SUB -COMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS: APRIL 7, 2015 PAGE 5 10. ADJOURNMENT: Agenda No. 6.1 MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR MARCH 17, 2015 CLOSED SESSION: 6:00 p.m., Room CC -8 Public Comments on Closed Session Agenda - None No. Government Code Section 54956.8 — Conference with Real Property Negotiators Property: APN 8719-005, Parcels 005, 006, 007 and 008 Agency Negotiator: James DeStefano, City Manager; David DeBerry, City Attorney Negotiating Parties: City of Diamond Bar, YMCA and Pony League Under Negotiations: Price and Terms of Payment CALL TO ORDER: Mayor Tye called the Regular City Council meeting to order at 6:30 p.m. in the South Coast Air Quality Management District/Government Center Auditorium, 21865 Copley Drive, Diamond Bar, CA. CM/DeStefano stated that during tonight's Closed Session one item was discussed pursuant to Government Code Section 54956.8 conference with real property negotiators, CM/DeStefano and CA/DeBerry. No reportable action taken. PLEDGE OF ALLEGIANCE: Council Member Tanaka led the Pledge of Allegiance. INVOCATION: Reverend Dr. Jeanne Favreau-Sorvillo, Diamond Bar United Church of Christ, gave the invocation. ROLL CALL: Council Members Herrera, Lin, Tanaka, Mayor Tye. Absent: Mayor Pro Tem Lyons was excused. Staff Present: James DeStefano, City Manager; David DeBerry, City Attorney; Ryan McLean, Deputy City Manager; Ken Desforges, IS Director; David Liu, Public Works Director; Bob Rose, Community Services Director; Dianna Honeywell, Finance Director; Greg Gubman, Community Development Director; Cecilia Arellano, Public Information Coordinator; Anthony Santos, Senior Management Analyst, and Tommye Cribbins, City Clerk. APPROVAL OF AGENDA: As Presented. 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: None, 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: None. MARCH 17, 2015 PAGE 2 CITY COUNCIL 3. PUBLIC COMMENTS: Anna Smith thanked the City Council for supporting Relay for Life and reminded residents that this year's Diamond Bar Relay for Life would be held on June 6, 2015 at Lorbeer Middle School and will be a one -day event from 3:00 p.m. to 9:00 p.m. The American Cancer Society has something called 'Paint the Town Purple" or "Show Your Hope" where purple ribbons are put up around the City to promote the relay. In the past the City staff has told the Relay committee that the City does not allow signs or anything to be posted around the City. The Committee is somewhat confused by this because during elections the City is covered with election signs. She asked if the City would reconsider the Relay for Life request and grant permission to put up ribbons around the City two weeks prior to the relay. Relay for Life will put them up and take them down and would be willing to meet with City Officials to determine where the ribbons should be placed. Surrounding cities allow purple ribbons to promote their relays. In addition, Relay for Life has been told by the City that it cannot allow partiality to a group or organization by participating in an event. She asked if this was a Diamond Bar rule because the city councils of Walnut and Pomona form teams to participate in the relay. Cancer shows no partiality and does not discriminate. She is sure that everyone in this room has had a family member, friend or co- worker diagnosed with cancer. The purpose of the relay is to raise awareness and funds to help find a cure for cancer. Since this is the 10th year in which Diamond Bar will have had a relay, Relay for Life would like to invite the Mayor and City Council Members to attend the relay on June 6. M/Tye asked why the event would be held for only one day. Ms. Smith said the committee had a choice; however, because it has been so difficult to find volunteers and a decline in participation the committee hoped if the relay was shortened there would be greater participation. Teri Muse, Public Sector Solutions Manager, Waste Management, announced that even though Carolyn Anderson is transitioning to the eastern side of the Inland Empire, she still continues to work with her in Diamond Bar. Ms. Muse went on to present the annual review of the 2014 Waste Management activities such as conducting a 1200 plus residential trash and recycling cart audit to find out what the company should do in terms of education outreach. Waste Management found that most people were not putting out recycling carts, which helps the company target its recycling outreach for 2015. Waste Management plans to expand recycling throughout Diamond Bar and include Diamond Bar High School and Diamond Ranch High School to get students involved in acquiring community service hours during the summer. During 2014 Waste Management collected 3,817 tons of recyclables, the bulk of which was paper (over 3,000 ton). Diamond Bar is a very green community. Waste Management collected over 7,000 tons of green waste and 3,500 bulky items in 2014. MARCH 17, 2015 PAGE 3 CITY COUNCIL Ms. Muse further reported that MPT/Lyons attended the MRF tour at the new Azusa facility. She invited Council, staff and residents to attend any of the tours which are held on the 4th Thursday of every month at 10:30 a.m. Pui-Ching Ho, Diamond Bar Library, introduced teen and adult librarian, Cynthia Yu who said she had worked for the County Library System for eight years as an Adult and Teen Services Librarian at the EI Monte Library. She is a proud resident of Diamond Bar and is very excited to join the team at the Diamond Bar Library and serve this great community. She has great patience for teen services and she is looking for teens with initiative and creativity to join the Teen Advisory Board and help make the library a better place for teens. This provides a great opportunity for teens to get involved with library programs, meet other teens, earn community service hours and gain experience on grading college applications. The first meeting will take place next Saturday, March 28 at 2:00 p.m. for teens aged 14 and up. 4. RESPONSE TO PUBLIC COMMENTS: M/Tye asked if CM/DeStefano would discuss the Relay for Life's request to decorate the City with ribbons. CM/DeStefano stated that this is not an agenda item; however he will comment on this matter from the City's standpoint. CM/DeStefano said that the City was aware of the annual Relay for Life program and the City has, as the speaker indicated, supported that program over many years. The City's support has grown. There are teams that are associated with Diamond Bar staff and DB 4 -Youth and others that have been very involved in the program and event over the years. The speaker indicated that some cities have allowed ribbons and signage to be displayed throughout their communities. However, it is a very dicey and difficult decision that cities make because cities cannot discriminate and must be impartial. Once the door is opened, it is opened for good. Diamond Bar prides itself on very clean streets and a very pleasant environment which is why people enjoy living in this City. There are some designated spots such as golf course fencing, school district fencing, park properties, etc. where signage is permitted. There are ways to work within the City's regulations and his recommendation was for the speaker to contact CDD/Gubman so that he can help guide that process. In terms of allowing purple ribbons to be displayed throughout the City around trees, on fences, etc., it is not permitted by Code and it is frankly not a good practice. C/Lin asked if the City had ever co-sponsored an event like Relay for Life. CM/DeStefano responded that the City has co-sponsored a variety of events such as the annual Easter Egg Hunt. He did not recall that the City had ever co- MARCH 17, 2015 PAGE 4 CITY COUNCIL 11 sponsored a Relay for Life event. There are cities that do engage in those kinds of organizations but again, cities need to be careful. For example, the City of Walnut is very active in the Relay for Life event which has a lot to do with the unfortunate early passing of Ron Hockwalt, the beloved school superintendent who passed away from cancer several years ago. Generally speaking, this was not the only reason but it sparked the community -wide interest in Walnut and Diamond Bar for the local Relay for Life program. SCHEDULE OF FUTURE EVENTS: 5.1 Planning Commission Meeting — March 24, 2015 — 7:00 p.m., Windmill Community Room, 21810 Copley Drive. 5.2 State of the City Address — March 25, 2015 — 6:00 p.m., Diamond Bar Center, 1600 Grand Avenue. Presentation begins at 6:30 p.m. 5.3 Parks and Recreation Commission Meeting — March 26, 2015 — 7:00 p.m., Windmill Community Room, 21810 Copley Drive. 5.4 Annual Easter Egg Hunt —April 4, 2015 — 10:00 a.m. — Pantera Park, 738 Pantera Drive. (Pancake Breakfast hosted by Fire Explorers Post 19 begins at 8:30 a.m.) 5.5 City Council Meeting — April 7, 2015 — 6:30 p.m., SCAQMD/Government Center, 21865 Copley Drive. 6. CONSENT CALENDAR: C/Herrera moved, C/Tanaka seconded, to approve the Consent Calendar with C/Lin abstaining from consideration of Check No. 111389 written to KOA Corporation in the amount of $1,937.50 on the Check Register. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Herrera, Lin, Tanaka, M/Tye NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: MPT/Lyons 6.1 APPROVED CITY COUNCIL MINUTES 6.1.1 Study Session of March 3, 2015—As Presented 6.1.2 Regular Meeting of March 3, 2015 — As Corrected. 6.2 RECEIVED AND FILED PARKS AND RECREATION COMMISSION MINUTES - Regular Meeting of January 22, 2015. 6.3 RATIFIED CHECK REGISTER — Dated February 26, 2015 through March 11, 2015 totaling $1,229,546.00. C/Lin abstaining from Check No. 111389 in the Amount of $1,937.50 written to KOA. MARCH 17, 2015 PAGE 5 6.4 AWARDED CONTRACT TO ICG, INC. IN THE AMOUNT NOT -TO - EXCEED $20,000 FOR THE DESIGN OF THE LONGVIEW PARK NORTH SWING SET EXPANSION AND AS -NEEDED CONCEPTUAL DESIGN WORK; AND, APPROPRIATED $12,000 IN SAVINGS FROM THE ECONOMIC DEVELOPMENT/PROFESSIONAL SERVICES ACCOUNT. 6.5 APPROVED CONTRACT AMENDMENT NO. 3 WITH FEHR & PEERS IN THE AMOUNT OF $18,000 FOR PROFESSIONAL SERVICES RELATED TO THE STATE ROUTE 57/60 FREEWAY CONGESTION RELIEF STRATEGY. 6.6 ADOPTED RESOLUTION NO. 2015-09: GRANTING AN EASEMENT FOR CONSTRUCTION, OPERATION AND MAINTENANCE OF SOUTHERN CALIFORNIA EDISON FACILITIES LOCATED ON LOT 63 OF TRACT 72295 COMMONLY REFERRED TO AS DIAMOND CANYON PARK. 7. PUBLIC HEARINGS: None 8. COUNCIL CONSIDERATION: 8.1 APPROVAL OF THREE-YEAR AGREEMENT WITH AMERICAN CAB CO., LLC, DBA YELLOW CAB, FOR DIAL -A -RIDE (DIAMOND RIDE) SERVICES BEGINNING JULY 1, 2015 THROUGH JUNE 30, 2018 WITH AN OPTION FOR TWO (2) ONE-YEAR EXTENSIONS. CM/DeStefano stated that this item is consideration for the approval of a three-year agreement with American Cab Company for the City's Dial -A - Ride Program (Diamond Ride Program) for services beginning July 2, 2015 through June 30, 2018 with an option for two (2) one-year extensions. SMA/Santos reported that the item before the City Council this evening is a request for approval of a three-year agreement with American Cab Company for Diamond Ride services commencing Fiscal Year 2015-16 which is July 1, 2015. The Diamond Ride program was initiated in 1995 and is a supplemental transportation program designed for seniors over 60 years of age as well as, disabled adults 18 years of age and older. The last contract awarded to Yellow Cab which was, at that time, owned by Diversified Paratransit with the agreement expiring June 30, 2015. Earlier this year, the City was notified by Diversified that their Yellow Cab operation would be sold to American Cab. There are two service areas that went into effect after program modifications in 2014. 1) Service Area 1 is for in -City trips at 50 cents per trip. 2) Service Area 2 is for medical trips. Trips outside of Area 1 and 2 MARCH 17, 2015 PAGE 6 CITY COUNCIL costing $1.50 and anything beyond Service Area 2 for medical trips only would incur a conversion charge of $2.50 flag drop plus $2.50 per mile. This is the current agreement that has been in effect for the past five years. Staff developed a Request for Proposals in late 2014 in consultation with the City Attorney and the RFP's were distributed to 11 cab companies in the area. Staff received three proposals in early February. Staff reviewed the three proposals in line with the City's Purchasing Policy which includes looking at the overall professional experience of the companies, the capabilities of the vehicles, etc., ridership and costs, in order to make a determination of the most responsive bidder. During consideration of the three proposals, two cab companies had existing Dial -A -Ride programs and the third proposal was from a company that did not provide that service and was not capable of meeting the demands of the City, therefore the company was excluded from consideration. One of the two remaining proposals were from American Cab and California Yellow. Staff reviewed the information for these two companies looking at the existing ridership and costs and performed a cost analysis. Staff determined that American Cab was charging $2.50 per mile, a flag drop of $2.50 which is the existing cost of the program. California Yellow proposed to charge a dollar more for a flag drop and 25 cents more per mile. In addition, California Yellow charged an eight (8) percent administrative charge on top of all other charges. When staff factored in existing ridership, existing costs per mile plus flag drop, staff was able to look at the real cost of the different proposals. American Cab offered the best cost of the most responsive bidders, with staff estimating a cost of approximately $25,000 per month or just over $300,000 per year. California Yellow was proposing what staff estimated to be a cost of just over $30,000 per month and almost $400,000 per year. This analysis is based on the existing ridership and the costs projections that will vary depending on whether ridership changes or fluctuates. Utilizing the cost information and cab companies' ability to meet the demands of the program, staff's recommendation is to move forward with American Cab because their proposal meets the current service obligations of the existing agreement, the existing flag drop and per -mile rate, there is no administrative charge and they acquired Yellow Cab earlier this year which means they have the dispatch center and dispatch number. Other strong points of the American Cab proposal include no changes to the fee structure. American Cab has new technology that the City has been attempting to integrate over the last five years including Card One which is a third party vendor system that offers smart mapping technology in the form of a magnetic strip that would be placed on the back of a card to implement the City's boundary information into their dispatch system. In addition, American Cab services many of the surrounding cities including Pomona, Walnut, and Covina which would MARCH 17, 2015 PAGE 7 CITY COUNCIL amplify the ability of American Cab to meet the demands of the Diamond Bar program. Staff's recommendation is to approve a three-year agreement with American Cab DBA Yellow Cab with an option for two (2) one-year extensions. The anticipated expenditure would be $350,000 for each fiscal year and would be funded through Proposition C. C/Lin asked about the average daily ridership. SMA/Santos responded that on a monthly basis prior to program modification the number was slightly over 2000 trips. After modification the trips are about 1500 per month. C/Lin asked if the City was subsidizing any of the expense for this program. SMA/Santos responded No. Proposition C is a special fund that is gas -tax funded and there are no General Fund costs to fund the Diamond Ride program. C/Herrera said she was pleased that this would offer the City a seamless transition and that the program would continue to be a relatively simple process for the residents. C/Herrera moved, C/Lin seconded, to approve a three-year agreement with American Cab DBA Yellow Cab with an option for two (2) one-year extensions beginning July 1, 2015 through June 30, 2018. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Herrera, Lin, Tanaka, M/Tye NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: MPT/Lyons 9. COUNCIL SUBCOMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS: C/Tanaka wished everyone a Happy St. Patrick's Day. Last Tuesday he participated in Read Across America celebrating Dr. Seuss's Birthday by reading his books to third graders at Armstrong Elementary School. On Wednesday he represented the City at the Robert and Beverly Lewis Outpatient Surgery and Rehabilitation Facility Ribbon Cutting in Pomona. On Saturday he attended the Inland Valley Regional Spelling Bee at Mt. San Antonio College with 34 finalists who competed. Nicholas Lee, an 11 year old 5th Grader from Caryn Elementary School was declared the winner and will move on to the National Spelling Bee in Washington D.C. in May. On Monday, March 9 he attended Diamond Bar Day at the LA County Fair Committee meeting to plan for Diamond Bar Day at the Fair MARCH 17, 2015 PAGE 8 CITY COUNCIL on Thursday, September 24. Last Wednesday he participated in Career Day at Diamond Bar High School with SMA/Santos. Later that evening he attended the Miss Diamond Bar Scholarship Pageant Candidate Sponsors Reception and met 13 of 14 candidates. This year's Pageant is scheduled for March 29 at the Diamond Bar High School Theater at 2:00 p.m. On March 9 and 16 he attended Neighborhood Watch meetings on Running Branch and on Bent Twig. C/Lin said that on March 5'h he and C/Herrera met with the Mayor of the City of Industry and the City's Engineer John Ballas to strategize for potential funding for improvement of the SR57/60. He will travel to Washington, D.C. next week to visit with various Congressional members and two Senators to advocate the seriousness and severity of these traffic issues directly in front of the City of Diamond Bar and to make them aware of the financial needs to mitigate the issues. C/Herrera thanked C/Lin for taking time out of his busy schedule to attend the meetings in Washington, D.C. on behalf of the City of Diamond Bar to advocate for additional funding to fix the SR57/60 Interchange. She congratulated the Diamond Bar residents who ran in the Los Angeles Marathon this past Sunday, particularly Diamond Bar resident Joe Ruzicka who will be 80 years old in June who had the stamina to finish the race. She congratulated her son Randy who also ran the race. She wished everyone a Happy St. Patrick's Day. M/Tye stated that both he and MPT/Lyons had the opportunity to represent the City at the South Asia Parents Association (SAPA) second annual Evening of Colors at Diamond Bar High School. It was not too long ago that Azan Barlas was before the Council to invite everyone to this event. Principal Real gets into supporting these groups and was dressed magnificently in the Pakistani garments. He wished everyone a Happy St. Patrick's Day. It was great to have Pastor Favreau-Sorvillo begin tonight's meeting with a poem. He said he would end tonight's meeting with an Irish prayer that says "Lord, may we know our friends by their smiles. We ask, Lord, that you please turn the hearts of our enemies to friendship and if you can't turn their hearts, please turn their ankles so we'll recognize them by their limp." ADJOURNMENT: With no further business to conduct, M/Tye adjourned the City Council Meeting at 7:08 p.m. TOMMYE CRIBBINS, CITY CLERK The foregoing minutes are hereby approved this day of 2015. STEVE TYE, MAYOR Agenda No. 6.2(a) MINUTES OF THE CITY OF DIAMOND BAR MEETING OF THE PLANNING COMMISSION JANUARY 27, 2015 CALL TO ORDER: Chairman Frank Farago called the meeting to order at 7:01 p.m. in the City Hall Windmill Room, 21810 Copley Drive, Diamond Bar, CA 91765. PLEDGE OF ALLEGIANCE: Chairman Farago led the Pledge of Allegiance. 1. ROLL CALL: Present: Commissioners Ruth Low, Jennifer "Fred" Mahlke, Peter Pirritano, and Chairman Frank Farago Also present: Greg Gubman, Community Development Director; Grace Lee, Senior Planner; Josue Espino, Assistant Planner; Natalie T. Espinoza, Assistant Planner; and Stella Marquez, Administrative Coordinator 2. SPECIAL PRESENTATION: Recognition of outgoing Commissioner Jimmy Lin. 3. MATTERS FROM THE AUDIENCE/PUBLIC COMMENTS: None 4. APPROVAL OF AGENDA: As presented 5. CONSENT CALENDAR: 5.1 Minutes of the December 9 2014 Regular Meeting Chair/Farago moved, C/Mahlke seconded, to approve the December 9, 2014, regular meeting minutes as presented. Motion carried by the following Roll Call vote: AYES: NOES: ABSTAIN ABSENT: 6. OLD BUSINESS: 7. NEW BUSINESS: COMMISSIONERS: COMMISSIONERS: COMMISSIONERS: COMMISSIONERS: None 7.1 General Plan Status Report for 2014: Mahlke, Pirritano None Low, Chair/Farago None SP/Lee presented the General Plan Status Report for 2014 and asked that the Planning Commission review and approve the report and forward the report to the City Council to receive and file. JANUARY 27, 2015 PAGE 3 PLANNING COMMISSION AYES: COMMISSIONERS: Low, Mahlke, Pirritano, Chair/Farago NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: None 8. PUBLIC HEARING(S): 8.1 Development Review No. PL2014-553 - Under the authority of Diamond Bar Municipal Code Section 22.48, the applicant and property owner requested Development Review approval to construct a 421 square foot single story addition and 30 square foot porch to an existing 2,697 square foot single family residence with an attached 633 square foot garage on a 0.45 gross acre (19,445 gross square foot) lot. The subject property is zoned Low Density Residential (RL) with a consistent underlying General Plan land use designation of Low Density Residential. PROJECT ADDRESS: 21260 Chirping Sparrow Road Diamond Bar, CA 91765 PROPERTY OWNER/ Zinhua Gao 21260 Chirping Sparrow Road Diamond Bar, CA 91765 APPLICANT: German Cortez 1168 San Gabriel Boulevard, Suite P Rosemead, CA 91770 AP/Espinoza presented staff's report and recommended Planning Commission approval of Development Review No. PL2014-553, based on the Findings of Fact, and subject to the conditions of approval as listed within the resolution. Chair/Farago opened the public hearing. German Cortez, Applicant, stated that for this project the owner wanted to relocate the living room to `the front of the residence and modernize the front fagade to match the neighborhood and create a front entry. Chair/Farago closed the public hearing. C/Pirritano moved, C/Mahlke seconded, to approve Development Review No. PL2014-553, based on the Findings of Fact, and subject to the conditions of -- approval as listed within the resolution. Motion carried by the following Roll Call vote: JANUARY 27, 2015 PAGE 5 PLANNING COMMISSION Dante Aguilas, Architect, stated that most of the landscaping at the front of the property is hardscape and continues with the present theme by merely adding more features to complement the fagade. C/Pirritano moved, C/Low seconded, to approve Development Review and Minor Conditional Use Permit No. PL2014-425, based on the Findings of Fact, and subject to the conditions of approval as listed within the resolution. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Low,Fahago Pirritano, Chair/NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: None 9. PLANNING COMMISSIONER COMMENTS/INFORMATIONAL ITEMS: C/Pirritano wished everyone a Happy New Year and thanked staff for their service to the Commission. C/Low thanked staff and hoped everyone had a good holiday. 10. STAFF COMMENTS/INFORMATIONAL ITEMS: 10.1 Public Hearing dates for future projects. CDD/Gubman thanked Commissioners for their well -wishes, hoped they had enjoyed the holidays and were looking forward to a busy and eventful year. CDD/Gubman reported that the owner of the property on which the former Kmart building sits finally has been able to buy the lease out from Sears Holdings, the parent company for Kmart, which is a significant milestone leading toward the redevelopment of that blighted center. The City Manager's office has engaged the property owner in discussion and staff is working with its economic development consulting partners to work in partnership to achieve the highest and best use for that property. Staff is very excited about the potential that is finally closer to being realized. CDD/Gubman stated that the Planning Commissioners Academy will be held March 4 through 6 in Newport Beach. The deadline for online registration is February 3 (next Tuesday) and the City has budgeted for any and all Commissioners interested in attending to do so, so any Commissioner wishing to attend should advise staff no later than February 3 so that they can be registered. Every other year the academy alternates from southern to northern California and this year it is in southern California. If Commissioners have any questions he would welcome a call from them. Two seated Commissioners attended last JANUARY 27, 2015 PAGE 7 PLANNING COMMISSION clustered on a smaller footprint. Without a Redevelopment Agency, the City does not have a lot of financial incentives so short of having that type of assistance the City would look to negotiate some amenities and flexibility. C/Low asked if the plan would come to fruition in six to nine months and CDD/Gubman said he could not speculate on a timeline because there are different scenarios that could play out depending on the overall size of the project area. Currently, the Kmart parcel consists of about 12 acres. The property owner also owns the strip center along Golden Springs Drive. What the property does not own is the property between the strip mall and Kmart (Ace Hardware and Dilliwala Indian Kitchen, etc.) so he cannot say anything involving buying and selling offers, but should a developer be able to acquire the middle piece, three contiguous parcels could be assembled for a larger and more comprehensive project. On the other side, Gentle Springs is a private street and should a developer be able to acquire any parcels on the other side of Gentle Springs, the street could be realigned and incorporated into the internal circulation for a Master Planned Development. There are many possibilities and it may be worth pursuing those types of plans rather than seeking a timeline within a year. Staff will continue to work with the property owner and see what can be done to influence efforts toward improvement. C/Low asked what was happening with the property where the East 180 Restaurant was located. CDD/Gubman responded that a new Japanese restaurant will occupy the former East 180 and there is exterior demolition work taking place at this time in preparation for an exterior remodel and tenant improvements for the interior. Plans for this project have been approved. 11. SCHEDULE OF FUTURE EVENTS: As listed in tonight's agenda. ADJOURNMENT: With no further business before the Planning Commission, Chair/Farago adjourned the regular meeting at 7:52 p.m. The foregoing minutes are hereby approved this 24th day of February, 2015. Attest: Respectfully Submitted, Greg Gubman ,ommunity Development Director Agenda No. 6.2�15.) CALL TO ORDER: Chairman Frank Farago called the meeting to order at 7:01 p.m. in the City Hall Windmill Room, 21810 Copley Drive, Diamond Bar, CA 91765. PLEDGE OF ALLEGIANCE: Commissioner Low led the Pledge of Allegiance. ROLL CALL: Present: Commissioners Ruth Low, Jennifer "Fred" Mahlke, Bob Nishimura, Peter Pirritano, and Chairman Frank Farago Also present; Greg, Gubman, Community Development Director; Grace Lee, Senior Planner; Josue Espino, Assistant Planner; Natalie T. Espinoza, Assistant Planner; and Stella Marquez, Administrative Coordinator. 2. MATTERS FROM THE AUDIENCE/PUBLIC COMMENTS: Edward Dahl, 1938 Chestnut Creek Road, said he was concerned about the drainage diverters along the streets and was told that the City would remove them. His has been removed because he had work done to his driveway and wanted to know if the other diverters would be removed in the future. He was also concerned about the heavy coyote population in the City and the loss of his dog and other cats and dogs as well as, the possible loss of small children. CDD/Gubman asked the speaker to provide his contact information and staff will reach him by phone to discuss his concerns. With respect to relocation of drainage diverters or any other infrastructure improvements, those items are handled by the City's Public Works Department and he will refer this inquiry to that department for outreach to Mr. Dahl. Regarding the coyote issue, staff is well aware of that issue which is a matter under the jurisdiction and regulations of the California Department of Fish and Wildlife, and it may be unlawful for individuals to take any action in this regard. There is staff in the City Manager's office that can provide information about what measures would be proposed to address this concern and he will ask the Deputy City Manager or one of the Management Analysts in that office to reach out to Mr. Dahl 3. APPROVAL OF AGENDA: As presented FEBRUARY 24, 2015 PAGE 2 PLANNING COMMISSION C/Pirritano moved, Chair/Farago seconded, to approve the January 27, 2015, regular meeting minutes as presented. Motion carried by the following Roll Call vote: AYES: NOES:. ABSTAIN: ABSENT: 5. OLD BUSINESS: 6. NEW BUSINESS COMMISSIONERS COMMISSIONERS: COMMISSIONERS: COMMISSIONERS: None None Low, Mahlke, Pirritano, Chair/Farago None Nishimura None 7.1 Development Review No. PL2014-618 - Under the authority of Diamond Bar Municipal Code Section 22.48, the applicant and property owners requested Development Review approval to construct a 1,232 square foot, two-story addition to an existing 1,823 square foot, two-story single family residence with an attached two -car garage on a 0.30 gross acre (13,180 gross square foot) lot. The subject property is zoned Low Medium Density Residential (RLM) with an underlying General Plan land use designation of Low Density Residential. PROJECT ADDRESS: PROPERTY OWNERS: APPLICANT: 1928 Chestnut Creek Road Diamond Bar, CA 91765 Hongjie Wu and Yanfang Yao 1928 Chestnut Creek Road Diamond Bar, CA 91765 Jason Jiang Jao Design, Inc. 5877 Pine Avenue Chino Hills, CA 91709 FEBRUARY 24, 2015 PAGE 3 PLANNING COMMISSION AP/Espino presented staff's report and recommended Planning Commission approval of Development Review No. PL2014-618, based on the Findings of Fact, and subject to the conditions of approval as listed within the resolution. C/Low asked if the second floor room designated as an office with an attached bathroom presented different challenges to the approval or plan check process than if the room was designated as a bedroom. AP/Espino responded that per the building code, the room would need to have a closet to be considered a bedroom and in this particular case, no closet is proposed. C/Low asked if the amount of space made a difference and AP/Espino responded "no." C/Nishimura stated that staff's report and diagram indicates there is a 22 foot setback from the front property line to the building and asked if that was correct to which AP/Espino responded "yes." C/Nishimura said he noticed that the lot was irregularly shaped and on the drawing the 22 feet is shown from the north side of the garage. Looking at the south side corner it will be less than 22 feet and he wanted to know if it is at 20 feet or more or less than 20 feet or if it makes a difference. AP/Espino responded that the distance at that location was about 21 to 22 feet because of the site tapering in a bit but it would not make -a difference in compliance with the Development Code and still meets the front setback requirement. C/Nishimura asked why staff used 22 feet in the report- and AP/Espino responded that for consistency of the drawings and staff measured the site and found that the setback meets the minimum requirement. C/Nishimura said if the measurement is something less than 22 feet, and staff is submitting a report, and the measurement is something less than what is stated he would like to see that information reflected in staff's report. C/Nishimura said he visited the site and found that it was less than 22 feet and he wanted to know how much less than 22 feet it measures or if it is over 20 feet because a Minor CUP might be required. AP/Espino thanked C/Nishimura for bringing this to his attention and staff will correct the information; however, staff's site visit concluded that the project complies as stated in staffs report and a condition of approval can be included in the Resolution that the project will comply with the 20 foot front setback requirement. C/Low said it appeared the measurement was 31 feet on the diagram. There is a notation of 22 feet at the bottom of the slide and then it goes up FEBRUARY 24, 2015 PAGE 4 PLANNING COMMISSION to 31 feet. AP/Espino responded that in reference to the 22 feet versus the 20 foot question was because the measurement was taken from its respective location as opposed to the location indicated by C/Nishimura. It is a correct statement that this should be taken into account and, based on staff's review and site visit that is from where the setback distance was measured. The 31 feet is recessed area from a portion of the property line. Chair/Farago opened the public hearing. Edward Huang, Project Manager, Hao Design, Inc. introduced his colleagues Jason Jiang, Project Architect and Lew Jiang, Project Coordinator, thanked staff for their help and support through a very pleasant working relationship during the design and development phase of this home addition project. His company respectfully submits this project for the Commission's consideration. This project is designed to house a four person family. Mr. Wu is a very successful businessman in China and he is in the process of pursuing his American dream and identified and purchased this property as part of that dream and wished to become a new member of this community. Mr. Wu was very happy to hear that Diamond Bar staff was very pleasant to work with 'and that Diamond Bar is a "business -friendly" community. His twin boy and girl are 11 and are looking forward to attending school and making new friends in the community. The proposed improvement to the property meets every requirement of the City's General Plan, Zoning, Development Standards and Design Guidelines. Again, this is the owner's pursuit of the American dream. The kids are growing and the owner wants a nice house for themselves and their kids. Mr. Huang said his company was very glad to be able to serve as a help in bringing.the Wu family to Diamond Bar. The house, as proposed with an addition is compatible -to the neighborhood and the style of the architecture is compatible to the neighborhood as well. Mr. Huang provided two maps and a photo to the Commission. Mr. Huang distributed to the Commission and staff copies of two maps diagramming all other existing two-story homes within an area generally along Chestnut Creek Road/Bella Pine and Wellspring Drive, between Terra Loma Drive on the south and Leaning Pine Dive on the north, and houses with compatible architectural styles. He also distributed to the Commission and staff copies of an aerial photo and street view photo with the roof plan and front elevation of the proposed project overlaid on them and showing the proposed slope and ridgeline of the roof. Mr. Huang said his firm's intent from the very beginning was to provide an integrated and compatible design and his client FEBRUARY 24, 2015 PAGE 5 PLANNING COMMISSION and staff are pleased with the result. Mr. Huang said that he would accept all conditions of approval as stated and continue to work with staff to implement those conditions. Lew Jiang thanked the City's Planning staff and in particular AP/Espino and AP/Espinoza for their help through this process. Jeff Deutsch, 1922 Chestnut Creek Road (property to the north of the project) said that based on his limited knowledge of the project he did not have any specific problems with the project with the possible exception of the fact that he added solar panels to their south facing roof and was concerned that the increase in the height of the project roof may impinge on the design of his solar panels which might require a change in the design. plan and costs related to moving the panels. Chair/Farago asked if the ridgeline was being changed on the project house and AP/Espino responded that the ridgelines, as shown on the roof plan, are such that it is maintaining the same height as the existing home. The cross ridgeline will intersect with the top of the existing ridgeline and the overall height will not change. There will be a mass for the second story addition but the height will not increase. Chair/Farago asked that the front view rendering of the project addition be put on the overhead and asked to have the speaker's concerns explained. Chair/Farago said that if the current height does not interfere with the . exposure and shading of his property, in staffs opinion, how would the project affect the neighboring property? CDD/Gubman referred Chair/Farago to sheets A-4 and A-6 of the plans and explained that the existing residence and the roof facing the neighboring property at 1922 Chestnut Creek currently has a gabled roof. The proposed addition will change that to a hipped roof in such a manner that the new roof eave line is going to be at the same height as the existing ridge and will increase in height to the height of the front facing gable. CDD/Gubman approached the dais in order to show Chair/Farago the roof plans to demonstrate how that would occur. CDD/Gubman addressed Chair/Farago and Commissioner Nishimura, reiterated what he had previously stated on the record and pointed to the diagram; however, the microphone was off and the audience could not hear the conversation. --- Michael Bharosa, 1981 Evergreen Springs, said he was totally against this project because he has seen in other cities such as Temple City, Alhambra, FEBRUARY 24, 2015 PAGE 6 PLANNING COMMISSION Monterey Park where they build these mini -mansions and the houses around depreciate in value. He stated that that was his opinion, of course. He wanted to know the reason these individuals are building this big monstrosity of a house which is almost doubling the size of the house. He had a yard sale two weeks ago down the street and neighbors from the neighborhood close to the project site, and it's just hearsay, said that they are going to open up a business there. Like he said, he has no proof, just hearsay, but they volunteered the information and if that is so, in his opinion, they should not be running a business if that is what is going to happen. He likes his neighborhood like it is and does not think his neighborhood needs mini -mansions. Edward Dahl, 1938 Chestnut Creek, next door to the property, said he moved into his house in 1977 (38 years ago) and there have been six families in the house (subject property) since he has lived in Diamond Bar. There used to be a plastic pool in the back yard and the third or fourth owner filled it in and planted a tree. If you go in the back yard and look from the house next to it across the subject property yard into his yard, about 10 feet from the back hill is a crack which has been there for over 30 years which he believes is not an earthquake fault but something cracked the cement apart. He added on to his house a few years ago and had to go deeper into his foundation to put the addition on. His addition did not require a hearing because it is in the back and not visible. Building a structure that high makes it a mansion. His house has more square footage because it is flat and not built up. This proposed "mansion" will stick out like a sore thumb and it does not match the rest of the neighborhood and seems like it would be out of place. The prior owner acquired the house at a discount through a sale and put $100,000 into the house. The roof is three years old. There is all new flooring inside and all new everything inside. Mr. Wu paid a premium for this house and does not see why he would want to dump another $100,000 to $200,000 into it because the neighborhood does not support that type of thing. If the gentleman wanted a bigger house he could have gone up the street four or five houses where all the houses are new and larger. The project house was built in 1963 and up the street the houses were built a lot later. They are a lot bigger. One of his concerns based on hearsay, up the street in the cul-de-sac there is a baby house, which he believes are illegal, and asked why would a person want to double the footage and overbuild for the neighborhood. He thinks the ground in the back needs to be inspected to see if it will support that type of weight. Mr. Dahl said he put up a brick wall between the houses many years ago and had the first three feet of it poured solid for the retaining wall and wondered if all of the weight of the new addition would affect his retaining wall. If it is ��EBRUARY 24,2015 PAGE 7 PLANNING COMMISSION] a multiple family he is concerned about parking. He parks a car on the street and has a jeep next to his motor home and will be putting all of his vehicles off of the street. When the street sweeper comes along he has to park on the lawn and has permission from the City to do so every Friday. He has talked with his neighbors who believe the addition will bring property values down. He understands that it is close to Diamond Bar High School which is a premium high school. He believes the roofline will infringe on Mr. Deutsch's solar system to where he will have to have it moved. Mr. Huang said that this is a single family home and not a baby house and it will not be a multi -family unit so there should be no concerns about those issues. He reiterated staffs report with respect to concerns about the new roofline interfering with the neighbor's solar panels that the new design will maintain the eave line. The roof line will be sloped up. The purpose of this design is not to create a mansion which is why the current roofline format will be retained. Shelley Wicks, 1950 Chestnut Creek Road, three houses down from the project site, said she was sure the people who purchased the home, intend to change the home and move into it are very nice. She understands why they want to live in Diamond Bar because it is a wonderful community. When she first came to California she lived in West L.A. for a number of years and one of the things that got her out of L.A. was the overbuilding that was happening. Nice middle class neighborhoods are taken over by people who want to update their homes which she understands and would love to do to her home as well. But what happened in West L.A. and all over Los Angeles is "McMansion" which is overbuilding. The subject property looks like it will be a lovely home but she cannot think of another house on her block that looks anything at all like the proposed project. It will be beautiful but it looks to be completely inappropriate to the rest of the neighborhood. Chair/Farago closed the public hearing. C/Low said she noticed during the public hearing that CDD/Gubman presented a diagram of the roof (to the Commission) and asked if the comments by the applicant comports with his understanding of the project and the diagram he presented. In short, does this clarify the concerns regarding the roofline? CDD/Gubman stated that in his opinion, after reviewing the plans, the distance separation between the two residences and the additional factor of the hipped roof being introduced would seem to suggest that it is being mindful of the solar access for the panels. Ultimately, FEBRUARY 24, 2015 PAGE 8 PLANNING COMMISSION it could be a civil issue if that turns out not to be the case. The proposed addition is in compliance with the Development Standards and there is not an obligation for the Planning Commission to remedy a potential civil issue that may take place. However, he believes it would be prudent for the two neighbors, should this project be approved, to discuss this matter and have a consultant provide line -of -sight analysis to determine whether or not there is a solar access issue and if that would need to be remedied either by relocating the panels, raising their height, or whatever needs to be done to modify the panels; or, alternatively, modify the design of the proposed house and come back to the Planning Commission for a revision. At the end of the day, this is a potential civil matter and he believed it was an important issue for the two potential future neighbors to resolve. C/Low asked for verification that this was not something that would bar the Planning Commission's approval of this project and CDD/Gubman responded that C/Low was correct and that is why he mentioned that when this type of situation comes up it is a civil matter that would have to be resolved between the private parties involved. C/Low said that for the record, the diagram that CDD/Gubman earlier presented to the Commission is available for the neighbor's review and that the neighbor can contact staff with further questions. It is her understanding that as with any development, there is no "right" to sight or view that people cherish in their neighborhoods insofar as it impacts the Commission's decision. CDD/Gubman said that C/Low was correct with respect to the Commission's decision making for this matter. There may be laws that grant solar access rights and if those rights are impinged upon there may be civil remedies for that. C/Low is correct that there are no guarantees and no requirements for protection of views and other preservations of an existing context. C/Low asked for verification that the Planning Commission's decision is based upon whether or not this particular project meets the City's Development Standard when it decides whether or not to approve a project. CDD/Gubman responded that there are two components to consider. The first is whether or not a project meets the Development Standards. As the Planning Commission's technical staff, we would not bring a project to the Planning Commission unless it met all of the development standards or if the application included a Variance request to deviate from those standards. The second component and why the Commission is needed, is to determine if the Commission can make the findings in order to grant approval which goes beyond the quantitative FEBRUARY s 2015 PAGE 9 PLANNING • ON compliance and technical compliance standards to a more qualitative judgment of whether this use is compatible and appropriate as a design in conformance with the Design Guidelines for the structure itself, as well as, its appropriateness in that location where this land use is proposed. C/Low asked if it would be appropriate to consider the development of the neighborhood by looking at Diamond Bar as a whole or is the Commission limited to looking at development or compatibility by focusing solely on that street. The reason she asks this question is because the concerns that have been voiced here by speakers is that some people might feel, in their opinion, that this is a very large residence while other people who may not have spoken today feel that it is not. The reality is that this development being proposed is not "double" the existing area, it is a little bit over one- third, which is not double or triple the existing home. However, if one looks around the area, as mentioned by a speaker, there was a similar home that was even larger in square footage than the proposed home. In addition, there is information from the applicant that there are similar homes in close proximity to this neighborhood. She asked if homes directly adjacent to the proposed development are smaller in size does the Commission consider that or can it consider the neighborhood to be larger than that because in fact, the Diamond Bar community has a number of homes that are the size of this proposed development. CDD/Gubman stated' that some of the decisions the Commission needs to make go beyond the "black and white" realm of code standards: the Commission should look at neighborhood context. How the Commission determines the radius or what defines the neighborhood in which this fits is the criteria by which it should judge this project. Looking at Diamond Bar citywide is not really a criterion that one would use because obviously, in The Country this project would barely be the size of maids quarters. There are very large homes within The Country. In fact, The Country might take a dim view and perhaps disapprove a project this size because it could affect the comparable values in that neighborhood. There are other multi -family designations where the mass and the bulk in scale of the homes are different. And so, each neighborhood is going to have its character -defining features and for this particular residence, the most critical compatibility factor or criteria to look at is this tract of homes in which it is located. The Commission can expand upon that evaluation by taking into account other subdivision/production type neighborhoods of similar lot sizes where because of the desirability of the community, the school district being an important draw, and families FEBRUARY y 2015 PAGE 10 PLANNING COd1t11ISSIOXw,i growing, a lot of projects that come before the Commission are proposed additions so that the families can grow in place and stay in the community. Adding onto homes that were built when lifestyles and expectations for the amount of personal living space was different, and the need to adapt to contemporary lifestyles is something to look at. So, getting back to compatibility for this proposal, is it just different? Sometimes looking attract developments the complaint is the monotony, the repetitiveness. So, this is clearly different from the other home designs in the neighborhood which is either good or bad in that it is difficult for CDD/Gubman to provide guidance onto which side this proposal falls. It is clearly an unprecedented design in this neighborhood. The square footage is about 3,000 square feet. By today's standards that is not unreasonably large for a parcel of this size and it is certainly not in the same context as Arcadia where one might have a 4,000 or 5,000 square foot lot and build an 8,000 or 10,000 square foot home. Those homes are clearly overbuilt. The amount of lot coverage permitted in some communities would be unacceptable in Diamond Bar and that is why Diamond Bar has lot coverage limits. C/Low thanked CDD/Gubman for his comments and said she felt they were very, very helpful for the Commission in terms of making its decision. She noted that as CDD/Gubman said, people have changing standards about personal living spaces and she recalled that the Commission recently approved a remodel where the family situation changed with Grandma returning home to live with the family which prompted a need to upgrade and increase the size of the home which is another type of lifestyle change that is seen in this community and across America. She also noted that if a family wanted to make their house better it is their money and they are entitled to use it as they see fit. C/Nishimura said he sympathizes with those who commented about "McMansions." He just did the math and this house is going from just over 1,800 square feet to 3,055. This is not a kitchen pantry addition, this is not a bedroom addition, this is 67.5 percent increase from the current size so he thinks it is something the Commission needs to keep in mind. He has worked in different cities where he has seen some of the West L.A. "McMansion" homes and he knows that the Commission is bound by the City's current standards, but again, this is a house and they are asking for our permission but he thinks the Commissioners have to realize when they, look at the numbers and the neighborhood, this is almost a 70 percent increase in the size of the house for this neighborhood. FEBRUARY 24, 2015 PAGEPLANNING Someone from the audience asked how long the building (construction) would last because she has allergies. CDD/Gubman said that as a general response, the City recently revised its Building Code so that a project needs to pass an inspection within certain deadlines. There used to be an allowance where one nail was driven which was considered "work being done" and that could extend the life of a permit for another six months. Currently, there are specific requirements for a project to pass an inspection within a certain deadline. A project of this size could take about four months. C/Nishimura asked if there were constrictions on the days and hours of construction and CDD/Gubman responded that the restrictions are 7:00 a.m. to 7:00 p.m. Monday through Saturday. C/Nishimura said he saw two different things in both agenda items where one section said 7:00 a.m.to 5:00 p.m. and another said 7:00 a.m. to 7:00 p.m. CDD/Gubman reiterated that the Code allows 7:00 a.m. to 7:00 p.m. C/Low said she thinks this is a nice project and she is mindful of the comments and the speakers that have spoken on this and the Commission has listened to their concerns. Based on the Commission's discussion and the Development Standards before it together with other intrinsic factors, she said she would move to approve the project. C/Low moved, C/Pirritano seconded, to approve Development Review No. PL2014-618, based on the Findings of Fact, and subject to the conditions of approval as listed within the resolution. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Low, Mahlke, Pirritano, Chair/Farago NOES: COMMISSIONERS: Nishimura ABSENT: COMMISSIONERS: None C/Nishimura said he voted "no" because the motion for approval did not include the 20 foot setback amendment that was discussed earlier. CDD/Gubman stated for the benefit of the audience that there is a 10 -day appeal period so that within 10 calendar days of this decision and with submittal of an appeal fee to the City Clerk's office, anybody has the right to appeal this decision for a de novo hearing before the City Council. FEBRUARY 24,2015 PAGE 12 PLANNINGOM • "J 7.2 Development Review and Minor Conditional Use Permit No. PL2014-574 - Under the authority of Diamond Bar Municipal Code Sections 22.48 and 22.56, the applicant and property owner requested, Development Review approval to remodel and construct a two-story addition consisting of 1,017 square feet of floor area to an existing 2,529 square foot, two-story single family residence with an attached 573 square foot garage on a 0.38 gross acre (16,700 gross square foot) lot. A Minor Conditional Use Permit was requested to allow a second story addition to an existing nonconforming structure with a 15 foot front setback (where 20 feet is required). PROJECT ADDRESS: PROPERTY OWNER: APPLICANT: 1280 S. Lemon Avenue Diamond Bar, CA 91765 Girish Shah 1280 S. Lemon Avenue Diamond Bar, CA 91765 Gabriel Isaia 11171 Oakwood Drive, Unit G312 Loma Linda, CA 92354 AP/Espinoza presented staff's report and recommended Planning Commission approval of Development Review and Minor Conditional Use Permit No. PL2014-574, based on the Findings of Fact, and subject to the conditions of approval as listed within the resolution. Chair/Farago opened the public hearing Gabriel Isaia, project designer, stated that the owner contracted with him to do this project because there is currently no bedroom downstairs. There are four bedrooms upstairs; however, the owner is getting to the point in his life of needing a master bedroom for his use downstairs. The living area over the garage will accommodate one child's playroom. As a designer, he proposes to match the existing roof ridgeline. These are not extravagant plans, merely simple plans to accommodate the family members' current and future daily living needs. Chair/Farago closed the public hearing. C/Low told the applicant she believed his design was very sensible and practical. People have changing lifestyles and need to make their homes FEBRUARY 2015 PAGE A.G COMMISSION compatible with their needs which the applicant has done for this family in good fashion. C/Nishimura said he visited the site and believes the architecture and plan the applicant submitted will fit in fine with the neighborhood. C/Low moved, C/Pirritano seconded, to approve Development Review and Minor Conditional Use Permit No. PL2014-574, based on the Findings of Fact, and subject to the conditions of approval as listed within the resolution. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Low, Mahlke, Nishimura, Pirritano, Chair/Farago NOES: COMMISSIONERS: - None ABSENT: COMMISSIONERS: None 8. PLANNING COMMISSIONER COMMENTS/INFORMATIONAL ITEMS: Chair/Farago welcomed C/Nishimura to the Planning Commission. C/Mahlke also welcomed C/Nishimura. C/Pirritano welcomed C/Nishimura and said it was good to have him on the Commission. C/Low welcomed C/Nishimura and hoped he would enjoy serving on the Commission. She thanked staff for a great job as always, for their patience, detailed information and articulation of the difficulties she inherits in some of these hearings. C/Pirritano announced that the annual Golfing for Kids Day to raise money for children of the community will be held on Monday, May 11. He serves as President of the Diamond Bar Community Foundation and last year the Foundation raised about $30,000 after expenses. The Foundation hopes to exceed that amount this year. There will be a celebrity golfer playing and he invited everyone to join in the event and at least come for lunch if they do not wish to golf. C/Low announced that The Friends of the Library will host the 22nd Wine Soiree on April 26 and everyone is invited. She has tickets for the event and The Friends would love to have everyone join in the event to celebrate the Wines and Foods of FEBRUARY 24, 2015 PAGE 14 PLANNING COMMISSION Italy this year together with Wines and Foods of native California. C/Pirritano will serve as a pourer and be sure to visit his table. C/Nishimura stated that this weekend was opening day for Diamond Bar Girls' Softball, the oldest youth sports league in the community which was started in 1969. He has been an active supporter and participant and served as past president and currently serves as treasurer. The first game was tonight and games will run for about the next 10 weeks and Commissioners are encouraged to attend the games which are held on Tuesday and Thursday nights at Pantera Park from 5:00 p.m. and 7:00 p.m. and all day Saturday starting at about 8:00 a.m. The event is for girls from T -Ball as young as 4 years of age through high school. C/Pirritano announced that the Diamond Bar Community Foundation is raising money for "Fields for Kids." 9.1 Public Hearing dates for future projects. CDD/Gubman welcomed C/Nishimura to the Commission on behalf of the Community Development Department staff and said staff looked forward to working with him. CDD/Gubman stated that the next Planning Commission is scheduled for March 10. On that agenda will be the Planning Commission reorganization which is the time for the Commission to select a Chair and Vice Chair to serve for the forthcoming year. Currently, the Commission does not have a Vice Chair and that deficiency will be remedied during the reorganization process. CDD/Gubman stated that also on the March 10 agenda, there will be a proposed residential addition at 2745 Wagon Train Lane and a proposed cell site at Maple Hill Park which proposes an artificial tree (monopine). Staffs report recommendation will be forthcoming and the Commission will need to prepare for what will likely be a controversial item since the proposed cell tower is surrounded by residential properties. CDD/Gubman reminded Commissioners that next Wednesday through Friday the Planning Commissioners Academy will be held and he, C/Nishimura and C/Pirritano will attend. CDD/Gubman said he would report any pertinent information back to the Commissioners that they missed out on by not attending. FEBRUARY 24, 2015 PAGE 15 PLANNING COMMISSION 10. SCHEDULE OF FUTURE EVENTS: As listed in tonight's agenda. ADJOURNMENT: With no further business before the Planning Commission, Chair/Farago adjourned the regular meeting at 8:23 p.m. The foregoing minutes are hereby approved this 10th day of March, 2015. Attest: Respectfully Submitted, Greg Gubman Community Development Director 61 - �- - Rutfi Low, Chairperson Agenda No. 6.2(c) 1 14,04 • �' •; MARCH i , 2015 C•7_ lari3717=1171 Chairman Frank Farago called the meeting to order at 7:08 p.m. in the City Hall Windmill Room, 21810 Copley Drive, Diamond Bar, CA 91765. PLEDGE OF ALLEGIANCE: Chairman Farago led the Pledge of Allegiance. 1. ROLL CALL: Present: Commissioners Ruth Low, Jennifer "Fred" Mahlke, Bob Nishimura, Peter Pirritano, and Chairman Frank Farago Also present: Greg Gubman, Community Development Director; James Eggart, Assistant City Attorney; Grace Lee, Senior Planner; Josue Espino, Assistant Planner; and Stella Marquez, Administrative Coordinator. 2. REORGANIZATION OF PLANNING COMMISSION — Selection of Chair and Vice Chair C/Mahlke nominated C/Low to serve as Chair of the Planning Commission. C/Pirritano seconded the nomination. There were no other nominations offered. C/Low was unanimously elected to serve as Chair of the Planning Commission by the following Roll Call vote: C/Mahlke Yes C/Pirritano Yes C/Low Yes C/Nishimura Yes C/Farago Yes C/Mahlke nominated C/Pirritano to serve as Vice Chair of the Planning Commission. C/Nishimura seconded the . nomination. C/Pirritano was unanimously elected to serve as Vice Chair of the Planning Commission by the following Roll Call vote: C/Mahlke Yes C/Nishimura Yes C/Farago Yes C/Pirritano Yes Chair/Low Yes MARCH 10, 2015 PAGE 3 PLANNING COMMISSION PROPERTY OWNERS Kuei Lien Lo 2745 Wagon Train Lane Diamond Bar, CA 91765 APPLICANT: Julieo Gutierrez 1749 N. Arrowhead Avenue San Bernardino, CA 92405 AP/Espino presented staff's report and recommended Planning Commission approval of Development Review and Minor Conditional Use Permit No. PL2014-556, based on the Findings of Fact, and subject to the conditions of approval as listed within the resolution. C/Nishimura asked AP/Espino to refer back to the chart for the development standards. He said he noticed that the side yard minimum between adjoining structures for the north side is 30 feet 7 inches and asked if that was correct when the drawings indicated 39.1 feet. He wanted to know where there was a loss of nine (9) feet because he could not find that in the drawings. AP/Espino referred to the drawings and said staff's report contained a typo because there was no addition proposed on that side of the home. The existing home is 39.1 feet on the north side and that staff would correct the error on the chart. C/Nishimura asked if in looking at Sheet 2 for the measurement of 30 feet 7 inches that is reflected on the architect's diagram between the project site and existing house to the north, does the arrow indicate where staff got the measurement for the 30 feet 7 inches between the existing house on the north (right side of the diagram). AP/Espino said he does not see 30'7" but sees the 39.1 feet which is correct. He pointed to the area in which the 39.1 feet was derived and for reference he asked C/Nishimura to point out the dimension he was referring to. C/Nishimura responded that on Page 2 there is a dimension between the existing house and the house to the north which would be the little bracket on the right side of the diagram. There is a dimension he believes goes from the northeast corner of the garage to the corner of the neighboring home. C/Farago explained to C/Nishimura that he is talking about the same dimension. It is illegible. AP/Espino said that as C/Nishimura mentioned, the existing dimension that was noted in the Table is a typo that should read 39.1 which has not changed. MARCH 0 PAGE - PLANNING COMMISSION , 2015 C/Low asked if there was a patio cover over the swimming pool which was part of the patio area. Is this an indoor swimming pool that exists? AP/Espino said it is not there and staff calculated the cover as part of the lot coverage. Essentially, it is a large patio cover. Chair/Low opened the public hearing. Luis Vasquez, builder for the project, said that he assisted the architect in the design. He said he was concerned about C/Nishimura questions about the measurement shown on the drawing because the measurement was well beyond the minimum 25 feet requirement. Other than that, he said he was good with the presentation. Chair/Low closed the public hearing. Farago moved, C/Pirritano seconded, to approve Development Review and Minor Conditional Use Permit No. PL2014-556, based on the Findings of Fact, and subject to the conditions of approval as listed within the resolution. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Farago, Mahlke, Nishimura, VC/Pirritano, Chair/Low NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: None 8.2 Conditional Use Permit No. PL2014-518 - Under the authority of Diamond Bar Municipal Code Section 22.58, the applicant requested Conditional Use Permit approval for a new wireless telecommunications facility consisting of 12 panel antennas, three (3) remote radio units, and a 24 -inch diameter microwave dish antenna on a new 65 foot tall monopine and related equipment, within a 220 square foot enclosure at a public park (Maple Hill Park). The subject site is zoned Low Medium Density Residential (RLM) with an underlying General Plan land use designation of Park (PK). PROJECT ADDRESS: 1355 S. Maple Hill Road (Maple Hill Park) PROPERTY OWNER: City of Diamond Bar APPLICANT: Bryce Novak Cortel, LLC 14621 Arroyo Hondo San Diego, CA 92127 MARCH 10, 2015 PAGE 7 PLANNING COMMISSION C/Nishimura said so the constituents went to the board is what CDD/Gubman heard and the school district, as a property owner, withdrew the application and CDD/Gubman said that C/Nishimura was correct. C/Nishimura said the property they proposed for the installation was owned by the public school district. CDD/Gubman said that C/Nishimura was correct. C/Nishimura said the City park is also public property. CDD/Gubman said that C/Nishimura was correct. C/Nishimura asked if the City, as landlords, have a right to say we don't want a cell tower there or are we compelled to put a cell tower there and CDD/Gubman explained that staff has consistently given authorization to providers who have approached the City to proceed with an application on public property. This is in keeping with past practice. The discretion whether or not to approve this lies with the Planning Commission and if the Planning Commission approves it and the approval is final then the City Council would then have to make the final decision to enter into a licensing agreement with the carrier to install the cell site on that facility. In speaking with the City Manager's office, they take a neutral position when they are approached and do not make the decision at the beginning of the process whether or not to grant authorization to make an application to CDD/Gubman's department. C/Nishimura said that the phone carrier must have been in communication with somebody at the City to say this concept in theory looks good and to go ahead and apply for it. Again, the question was, as the property owner, can the City just say it does not want a cell tower there. DCA/Eggart responded to C/Nishimura that as the property owner yes, the City has an absolute right to not allow a carrier to construct a tower on its property; however, the decision whether to allow it on City property is within the jurisdiction of the City Council and is not something that is actually before the Planning Commission as part of its decision. The final decision will be made by the City Council when it considers leases for previously approved cell tower applications. C/Nishimura repeated that as a property owner the City could say yes or no regardless of this health concern so they can have any reason to say yes or no and ACA/Eggart said C/Nishimura's statement was correct. C/Nishimura said that CDD/Gubman mentioned something about "past practices" as a reason for the City having allowed cell tower application to be submitted for City -owned properties. He asked if the City ever denied people permission to submit applications to put cell towers anywhere on City property or City rights-of-way. CDD/Gubman responded that he was not aware of any such denial and C/Nishimura said okay, not like the WVUSD which has cell towers on some of their properties including some in the City at Diamond Bar High School, so in this case they deviated from MARCH 10, 2015 PAGE 9 PLANNING COMMISSION C/Nishimura asked if he was correct to say that the antenna at Pantera Park is camouflaged in a lighting standard for the ball field. AP/Espino responded yes. Camouflaged is subjective, but yes. C/Nishimura said it is one and the same. It is the light standard that was modified to accommodate the antennas and the lighting for the ball field. C/Nishimura said there are a couple of sites at Peterson Park that are against the freeway and they are also on the light standards and not fake trees. The ones at the Diamond Bar Center are two fake trees at the back of the parking lot. He wanted to know if the proposed site was similar to the installation at the Diamond Bar Center. AP/Espino said it was similar in the fact that it was an artificial tree. The two at the Diamond Bar Center are 45 feet high and resemble elm trees. The proposed project is a 65 -foot high artificial pine tree. Chair/Low asked to again see a photo depicting the installation and whether the applicant had additional photos of actual installations. AP/Espino responded that the applicant indicated yes and that he will display them on the screen. Chair/Low asked AP/Espino to put up the slide that shows the coverage and coverage gap. AP/Espino explained that the slide showed the map of coverage without the site. Chair/Low asked for an explanation of the various colors with respect to cell service. AP/Espino stated that the darker green colors are the optimum level for cell phone reception/transmission inside of a building. The lighter green is reception/transmission through a vehicle and the yellow is reception/transmission outdoors. The gray arrows are shady at best and the white is non-existent reception/transmission. Chair/Low asked if AP/Espino could provide an overlay of the coverage area with the inclusion of the proposed cell site. AP/Espino responded that he did not have an overlay but could toggle between the slides showing coverage without the proposed site and with the proposed site. Chair/Low said the map was deceptive and asked how far the coverage would be extended. AP/Espino said it was approximately '/z mile distance to Diamond Bar Boulevard and scattered into the neighborhood. Chair/Low asked if staff had any knowledge that these cell tower "trees" resulted in any vandalism to the community and AP/Espino said he was not aware of any. CDD/Gubman said he was aware of copper wire being stolen from field lighting and did not recall at Pantera Park whether the pole that houses the cell site was vandalized in that way. This type of theft is always a risk. Chair/Low asked the height of the existing trees that would surround the proposed cell tower and AP/Espino responded that there are numerous mature Eucalyptus trees that can grow well over the proposed 65 foot high cell tower. There are trees located along the steep hillside incline and there are mature trees that are higher than the proposed tree depending on where they are located, whether above or below the grade of the proposed facility. According to MARCH 10, 2015 PAGE 11 PLANNING COMMISSION C/Nishimura said he had the same question which was not answered to his satisfaction. He has AT&T and while he is not advertising AT&T he has never had problems in that area. He asked if Mr. Novak knew the location of the AT&T site and whether it would provide a possible site for co -location. As it is, the Commission is being asked to weigh in on this project and for all he knows, this is the only alternative because there are no other alternatives that were presented to the Commission. Mr. Novak explained that before carriers hand these types of search rings off and send specialists out to review the areas to site acquisition firms such as the firm for which he works, they approach the different carriers and tower companies to locate their installations. C/Nishimura asked if in this instance Mr. Novak knew that that happened or whether he was just saying this usually happens. C/Nishimura said that it seems to him that for this project Mr. Novak is not sure whether this happened or not. C/Nishimura asked Mr. Novak if he can say that this happened. Mr. Novak said no, he can only say that he drove the area with the engineer. C/Nishimura said that was not his question. His question was, does Mr. Novak know if the process he described before where all of the alternatives were considered by the carrier, whoever it may be, had different alternatives — did they know that AT&T has a tower and that AT&T said no to co -locating. Is there something across in Diamond Bar Boulevard in The Country for example, because they are higher, which might provide another alternative site. C/Nishimura said the Planning Commission was not being presented with any other alternatives and no one is telling the Commission that there have been any other alternatives other than Maple Hill Elementary School across the street which was denied. Mr. Novak responded to C/Nishimura that he has seen two emails going to the tower companies (Crown Castle and ATC) where T -Mobile's development manager approached AT&T and Verizon. Other than that, he cannot say whether they actually did so. C/Nishimura asked if T -Mobile would own the tower or lease it from Cortel, LLC and whether they would have first right -of -refusal and an advantage in going into the project with Cortel. Mr. Novak said that T -Mobile would own the tower. C/Nishimura said so if they own the tower they could set the rents for a co -locator and Mr. Novak explained that rents are set between carriers who have a Master Lease Agreement. Each carrier has set pricing they can charge each other on each other's towers. C/Nishimura stated that T -Mobile could make money on another carrier coming in to lease out the other space on the tree. Mr. Novak said yes, just as another carrier can make money off of T -Mobile if MARCH 10, 2015 PAGE 13 PLANNING COMMISSION Boulevard which already has coverage. C/Nishimura asked Mr. Novak if he was saying there were no other alternatives other than this monopine pole and Mr. Novak again said there are no other alternatives. C/Nishimura asked if it would solve the problem if antennas could be put on some of the existing Edison light poles. Mr. Novak said the problem would be that those are extremely costly and there is a population in this neighborhood of 3,000. Light poles are put in highly dense urban environments which can justify the cost. If these antennas were placed on a light pole there would be coverage between five and 10 light poles. C/Nishimura said but it can be done, it would just be more expensive for the provider. Mr. Novak said that in his experience, for these antennas to be running in neighborhoods, opposition to the project is even higher than what it would be if T -Mobile proposed to install more than one cell site in an open park. C/Nishimura commented that is cheaper to put one fake tree in a park than it is to maybe put smaller antenna arrays on five or six different light poles and Mr. Novak responded that as a property owner because they would be closer to residences, it would be more tenable to place the tower in the park which is an open environment. C/Farago directed his question to staff stating C/Nishimura indicated that there are arrays on existing light poles illuminating ball fields and he wanted to know if there were light standards at the park used to illuminate the tennis courts that these antennas could be placed on rather than installing a monopine. CDD/Gubman responded that to the best of his recollection, the tallest light poles at Maple Hill Park would be at the tennis courts and he did not believe they were higher than 18-25 feet high. C/Farago asked Mr. Novak if it was true that he personally traveled the area looking for service for T -Mobile but there was no real investigation with respect to alternative cell towers that T -Mobile could possibly lease space ,on: Mr. Novak said he identified every cell site in this general coverage area, most of which are along Diamond Bar Boulevard and Grand Avenue at lower elevations. This specific coverage gap cannot be closed by putting antenna on one of the City's major street arteries. There is only one solution in this instance which is the higher elevation site. C/Nishimura asked if Mr. Novak's statement was that he looked at all of the T -Mobile towers and not everybody's towers. Mr. Novak said that C/Nishimura's statement was not true. This map was created to justify T -Mobile's coverage gap. He reiterated that he personally drove the entire area with T -Mobile's engineer to look at and identify every cell site on every street that was not documented, and he is not aware of any cell sites in the subdivision. C/Nishimura said that it is not depicted on this map. Mr. Novak MARCH 10, 2015 PAGE 15 PLANNING COMMISSION Will it go to help kids, improve the park or go into the General Fund? The neighborhood does not want this huge infringement on a small park. C/Nishimura asked the City Attorney if people were required to give their name and address during a public hearing and ACA/Eggart responded "no." Junko Takeya, Birdseye Drive, said the small portion of the park where T -Mobile is requesting to place this tower is right next to the area where most families go when they have birthday celebrations or gatherings. This is going to be so intrusive on that area because there is no way it will look like a native tree. When people sit at the picnic tables off to the side they will see the enclosure because it cannot be hidden. This park is too small to allow this structure. More and more, green spaces are being destroyed for housing developments in Diamond Bar and other cities. Hillsides are coming down for these developments and the City needs to protect what little green space is left. This park has been in this community for decades and this fake "tree" will be an eyesore to this beautiful little community park. According to Municipal Code Section 22.72.020 it states under number 2 that display boards will be placed in at least three public places in the area of the property. There is only one display board located in a place where unless one intentionally goes to the board they will not see the notice. She visits the park every day and walks through the entire park. Even if she were to go down the footpath and make a left turn on Maple Hill she would not notice the display board. Most of the park visitors park along the side of the park if they are going to Little League games, enter through the gate and come back out or drive into the parking lot and then exit their vehicles, go up to the footpath, go to the tennis courts, go to the field or go to the playground. No one ever walks to the front side to look at the sign. This is a blatant attempt to adhere to the letter of the law and not the spirit of the law which is to notify the public about what is taking place. She is opposed to T -Mobile putting up the monopine. She too has AT&T and her cell service is fine. She has no problem getting service in the park and around the neighborhood. Evelyn Li, Blenbury Drive, said four years ago she and her husband bought their house specifically for this park and the nearby schools. She delivered a baby four months ago and read up on cell phone radiation which could lead to birth defects, Alzheimer's, and cancer and she knows the Commission cannot make its decision based on health but all of the residents and people who use the park are really concerned about the health issues. She is an AT&T customer and has no problem with her wireless connection in the area. She hopes that T -Mobile can find out how AT&T is able to provide service and perhaps co-partner with them for MARCH 2015 PAGE PLANNING r. • . to get the matter placed on next Tuesday's agenda which does not sound correct to her. ACA/Eggart explained that there are two separate processes for appealing the Planning Commission decisions as set forth in the Municipal Code. The first allows the City Council as a body to call up the item without an appeal which needs to be done within 10 days of the decision. Therefore, the matter would need to get put on an agenda for a City Council meeting within 10 days of the decision in order for the City Council to vote on whether they wanted to call up an item and hold a public hearing or let the Planning Commission's decision stand. Separate and apart from that, individuals, applicants, and members of the public can appeal and file a formal appeal in writing with the City Clerk and pay the appeal fee regardless of what the City Council does on its own. The City is not necessarily acting in response to a request from the public but as a practical matter, if people have concerns they can let their City Council Members know and that is how City Council Members become aware that there may be an issue they should consider. Chair/Low said it sounded to her like all one had to do was get on the phone and talk to his or her favorite Council person. It sounded nefarious to her and she did not believe that was the intention of the process. ACA/Eggart said it was not the intention of the process and under these circumstances, regardless of the Planning Commission's decision, staff would notify the City Council Members the next day of the Planning Commission's decision so that they would have an opportunity to consider placing the matter on next Tuesday's agenda, should they chose to do so. Evelyn Li asked if she was being advised to talk to a Council Member tomorrow and Chair/Low advised her to wait until the end of the public hearing to see what the Commission decides. Mrs. Li said that even if the Commission disapproves the matter, the applicant might appeal the Commission's decision and in that event, would this entire process would take place again. ACA/Eggart again explained that if the matter is appealed to the City Council, or if the City Council votes to take up the matter absent an appeal, the exact same process will occur again before the City Council with a public hearing, public notices, publishing it in the newspaper and posting it on the property and the entire presentation will take place once again. MARCH '1,.. 2015 PAGE i •.' would not buy a property that has a view of a cell tower. That information could hugely affect his ability to sell his home. He has been in his home for 16 years and does not plan to move. At the same time he does not want something hideous he has to look at every time he looks out his backyard and when he takes the kids and dog to the park. At a height of 65 ft and this being the only pine tree in the area where there are Eucalyptus trees only, this would stand out like a sore thumb. Also, the pictures the Commission was shown did not include the microwave (dish) and he did not believe the microwave could be camouflaged as well as regular antennas so people will see a big round dish on the fake tree. He asked the Commission to please find a better way. Nancy Kim has a son in kindergarten at Maple Hill Elementary School. Every day at 1:15 p.m. he and his friends go to the park. Every day at 2:30 p.m. a lot of kids (100, 200, or 300) go to the park because the parents park at the park to pick up their kids. Kids play at that park every day. It is right in front of the school. The kids are very curious and they will want to go touch the tree. Please consider the lives of the kids and deny the project. Teruni Evans lives in north Diamond Bar and drives her kids to Maple Hill Elementary. She is a parent and was not notified about this project. She found out through Facebook when somebody posted the information. She is a T -Mobile customer but she does not want a cell tower at that location. If it is between her kids and other kids versus her getting cell service she is okay not getting the cell service. She asked the Commission to deny the project. Robert Lin, long time Diamond Bar resident, said this was his first time attending a Planning Commission meeting. He commended the Commissioners for their level of inquiry on this matter. He is opposed to this project. He is a board certified family physician and to him, health is everything. According to the International Agency for Research on Cancer, radio frequency is classified as a possible carcinogen and that being said, regardless of the reason for the WVUSD denying the initial placement at Maple Hill Elementary School, placing a cell tower directly across from a school is tantamount to placing it at the school and exposing the kids. The applicant mentioned that the Development Code allows for wireless facilities on public property but that is an inherent conflict of interest because T -Mobile is making money off of the risk of exposing kids who visit the park and come into the vicinity of the tower after school. Historically, there has MARCH 10, 2015 PAGE 21 PLANNING O • I problem with reception. If a T -Mobile customer has a problem they can switch. There is no reason to take the whole neighborhood down because of selfish reasons. He asked the Commission to kindly disapprove the cell tower because it does not belong here. Cindy Pan said that Maple Hill Elementary is her school and she does not want a cell tower in the park. She grew up in Diamond Bar and went to Diamond Bar High School where she ran cross-country. Her team went to Maple Hill Park to stretch and run and that fake tree will not be ideal because kids go there all of the time and she does not want the cell tower there. Why is this project being discussed tonight when residents do not know about it? She reads the quarterly newsletter but did not see anything about this project. Her suggestion to T -Mobile is if they want coverage for people who live in the subdivision they should partner with AT&T. Obviously, they already have coverage in the area and T -Mobile can make a deal with them and T -Mobile can keep their customers. 'The most important thing is for customers to have the coverage they need but there should not be a cell tower in a public park where kids will want to touch the tree and try to climb it. She graduated from Cal Poly with a Chemical Engineering Degree and she knows safety is a huge issue, especially for kids. What is being proposed is definitely not safe. Chair/Low closed the public hearing at 9:14 p.m. CiNishimura asked where the money would go if the application is approved and a lease is approved and CDD/Gubman responded that it would go into the City's General Fund. C/Nishimura said that one of the speakers brought up Section 22.720.20 of the City's Development Code and asked if she was correct in stating the Code requires that there needs to be three signs/notices posted on the property. CDD/Gubman responded no, that is an inaccurate reading of that Code Section. There is a requirement to post the property with a notice board and copies of the notice need to be posted at three designated sites. AC/Marquez stated that the three designated posting sites are at Heritage Park, the AQMD Building and the Diamond Bar Library. In addition, the notice is posted on the City's website. Chair/Low asked if this project was in compliance with the notification process and AP/Espino responded affirmatively. C/Nishimura asked if notices could be placed in any three public places in the area of the property and whether it could be placed in three other places in north Diamond Bar to meet the Code requirements. Or, is it at designated MARCH 10, 2015 PAGE23 PLANNING COMMISSION at the Diamond Bar Library, Heritage Park and the AQMD Building and on the City's website. C/Nishimura asked if there is anywhere in north Diamond Bar. AC/Marquez responded, that in this case, the AQMD Building is the closest to north Diamond Bar. C/Nishimura responded "interesting." C/Farago said the aesthetics of this tower are an area of concern for him, especially with the equipment box. He wanted to know who chose the location because it could not be any closer to where a majority of people congregate for picnics and tennis as well as, being more centrally located within the park. And why was this particular type of fake tree chosen which is not representative of any of the other trees in the park. AP/Espino responded that staff worked with the applicant. Initially, the proposal was to locate the tree adjacent to the street which would have made it very visible from the school across the street. The applicant worked with the Community Services Department for a location on the park property. When Planning staff got involved in locating the tree there were two other alternatives staff felt were more aesthetically pleasing for a location. Planning staff felt that the location adjacent to the public street was not a very suitable location for visibility issues because it would be taking up space in the open ball field area. The second location that was contemplated was up in the landscaped area between the walkways which staff also did not believe would be suitable. As staff looked around the park, staff contemplated various areas such as behind the tennis courts which proved to be unfeasible and which also did not meet the minimum distance requirements to residential parcels. The best location at the park that staff could recommend was at the proposed location which is behind the tennis courts and not in any actively used park areas. The equipment structure was contemplated to be behind the tennis courts, which is currently occupied by brush so it seemed to staff to be a suitable location. The fake pine tree was going to be located at the top of the hill where it would be surrounded by existing vegetation and blocked from view from the street. Again, staff worked with the applicant to consider various locations at the site and ultimately determined the proposed site to be the best location. C/Farago asked why the park was chosen and why private property was not considered. AP/Espino reiterated that the applicant is proposing this location and based on the requirements and topography felt this was the best location. In addition, the City's standards for wireless facilities state they are not allowed on residentially zoned properties that contain MARCH 0 2015 PAGE25 PLANNINGCOMMISSION stated there were 25 complaints over a three month period which he said would equate to hundreds of complaints over a year. Chair/Low asked if the Commission was supposed to reopen the public comments because the applicant was asked to address Commissioners questions. ACA/Eggart said that if the Commission wanted the applicant to speak, the public hearing would need to be reopened. Chair/Low reopened the public hearing. C/Nishimura said so there were 25 complaints over a three month period and asked over what three month period Mr. Novak was referring to and Mr. Novak reiterated December 2014, January 2015 and February 2015. C/Nishimura asked how many complaints were from the same person and Mr. Novak said the complaints were from 25 different people from 25 different customer billing addresses within the coverage area. C/Nishimura said that there is a chance that some of these complaints could be duplicate complaints. Mr. Novak said that he believed that when carriers documented complaints for search rings, they documented them as separate customer complaints. C/Nishimura asked Mr. Novak if he knew for a fact beyond a reasonable doubt that these were 25 separate complaints. Mr. Novak said he does not work for T -Mobile. C/Nishimura asked if Mr. Novak knew anything about the complaints during the past year. Mr. Novak responded that for this project the search ring started over a year ago, so for T -Mobile to provide him with this search area radius for a tower indicates to him that they have received complaints over several years. C/Nishimura said but we do not know how many complaints were received over the past year. He said that Mr. Novak had been pretty detailed on complaints during the last three months so either T -Mobile did not provide Mr. Novak with that the information or he does not know the information about the number of complaints over the past year. Mr. Novak reiterated that the information provided to him covers the three month period as stated. Again, these search rings are provided to him because there have been complaints dating back many years which is the reason the provider seeks his assistance. C/Nishimura asked when T -Mobile received the first complaint. Mr. Novak said he was trying to emphasize that this search ring would not have been created without prior complaints which is why and where the entire process starts. Carriers run demographic studies based on how many people are in the quarter -mile radius, how much coverage ...... C/Nishimura interrupted to MARCH li 2015 PAGE27 I PLANNINGCOMMISSION C/Nishimura said that somebody mentioned a round dish and wanted to know if a round dish was part of this tower. Mr. Novak responded that as stated in staffs report, there is a proposed 24 -inch microwave dish that will be installed on the monopine. C/Nishimura asked where the dish would be located. Mr. Novak said it would be placed at approximately the second line down between the two antenna arms as shown on the drawing. C/Nishimura asked if there was a' picture of the dish and Mr. Novak said that he believed some of the other elevations might show it better. It is designed to be mostly concealed by the pine needles. C/Nishimura said he did not see a circle on the drawings and Mr. Novak said he believed it was called out on the drawings. C/Nishimura asked Mr. Novak to approach the dais and show him -where if might be. As requested, Mr. Novak approached the dais in order to point to a place on the drawing where the dish would reside. He said that the drawing indicated where the proposed T -Mobile 24 -inch microwave dish would be mounted on the monopine which indicated the dish would be installed at an elevation of about 46 feet at the mid -point of the dish. C/Nishimura stated that the circular disc is not represented on that picture but the arms of the other antennas are. Mr. Novak said it is designed as accurately as possible to represent what a monopine would look like when it is installed. C/Nishimura asked if the circular disc would be seen from a certain view and Mr. Novak said that based on the drawings it is in the eye of the beholder. C/Nishimura said that Mr. Novak is presenting this issue and making the statement that this is what would be seen. C/Nishimura does not see a circle on the drawing so he does not know if it will be on the outside and he does not know how camouflaged it will be. He knows that with his DIRECTV dish if his Eucalyptus tree gets in front of it he gets no service. He is not an expert but he would think that things cannot be placed in front of this dish. Mr. Novak explained that the tree and needles are designed to allow penetration of radio frequencies. C/Nishimura asked if the 24 -inch dish would be seen or not. Mr. Novak said it would be highly concealed. C/Farago asked if Mr. Novak said that he was able to identify the 25 complaints over a three month period as having been from residents identified through their billing addresses. Mr. Novak explained that when complaints come into the call centers, billing addresses are used to identify the complainant. C/Farago said it did not necessarily equate to folks living in the area of lost coverage. Mr. Novak said that in fact, it did. The 25 complaints fall within the coverage deficient area. C/Farago asked how many customers T -Mobile has in that area because it seems that most of for vetting and that staff report back to the Commission at the next meeting so that this hearing could be continued. Chair/Low stated that C/Nishimura is asking for important and relevant information all of the Commissioners need in order to make an informed decision. ACA/Eggart said that Chair/Low's request was reasonable and if the Commission chose to do so it could continue the public hearing to a date certain which would be the next Planning Commission meeting. He said he would recommend asking the applicant's opinion regarding a continuance because as a matter of law, there are time limits within which the City must act on this matter. If the applicant objects and wants the Commission to make its decision tonight that needs to be a part of the record. Chair/Low asked C/Nishimura to provide his questions at this time so that the applicant could provide the information for the benefit of the Commission and public, after which she would ask if the applicant had an objection to continuing the public hearing. C/Nishimura said he wanted to hear if the applicant had an objection to continuing first and ChairlLow stated that C/Nishimura should ask his questions at this time for the benefit of the entire Commission, C/Nishimura said that one of the data points Mr. Novak presented is that there were 25 complaints and C/Nishimura wants to know the date of the each complaint, the location that is being complained about and the location of the billing address, as well as, supporting methodology about how this data is gathered. Again, he does not know if it is 25 people driving through the City to get to Chino Hills or if it is 25 people who live in the area that are complaining about that area. And he does not know if the complaints are about any of the areas that are getting mitigated outside of the Maple Hill community. Chair/Low asked if Mr. Novak understood what C/Nishimura was asking and Mr. Novak said yes, and in his opinion, if he were to provide the Commissioner with the data that it would not matter. He believes he presented a case where there is a coverage deficiency that T -Mobile is trying to cover and that he had provided backup and justification for this project and he respectfully asked for the Commission's decision tonight. Mr. Coventry said that T -Mobile is using December 2014 and January and February 2015 as data and Mr. Novak is being reluctant to share that with the Commission. At Christmas time a lot of people get cell phones and if he were to get his kid a T -Mobile phone, bring it home and it not work, that MARCH 0 2015 PAGE 31 PLANNINGCOMMISSION Junko Takeya said she was shocked that the applicant came in complaining about an area that lacks coverage and cannot tell this Commission and residents how many T -Mobile customers this actually affects. How can Mr. Novak not have that number? Pramod Gutha, T -Mobile Engineer, said he brought coverage maps. He drove around the area with cell phones to quantify and record the coverage that is available in the area. Chair/Low closed the public hearing. C/Farago said he was concerned about due diligence in determining that this is the right location. Within the coverage area it just so happens that the cell tower location would land in a park. Looking at all of the renderings and what is being proposed, the aesthetics still concern him because the tower looks like it would detract from that park and neighborhood. It is a real concern that what this application brings forth to the Commission is the better of two bad options, which he believes handcuffs the Commission. C/Nishimura said that what the Commission is considering is a Resolution that was prepared by staff and of course, the City has to come up with Findings of Fact. Under the Conditional Use Permit section on Page 2, the last sentence says "therefore, the proposed facility will have no adverse affects in the surrounding area" so the Commission has to say yes or no. No. 5 says "granting the Conditional Use Permit will not be detrimental to the public interest, health, safety, convenience or welfare, or materially injurious to persons, property or improvements in the vicinity and zoning district on which the property is located" so the Commission has to say yes or no and staff has written it in such a way that it is not detrimental. Midway into the page it says "wireless telecommunications facilities No. 1 — taking into consideration alternative sites that are available" and he did not hear that any alternative sites were available other than the suggestion maybe they could go on street poles. He said he wanted to point out these statements in the Resolution to the public and his colleagues because the Commission is being asked to approve or disapprove the Resolution that is before the Commission. ACA/Eggart said a moment ago he stated that the Commission should defer to the applicant whether or not to continue the hearing. He said he was backing away from that statement because he wanted to give the Commission an opportunity to do what is best and there are a few options that he would like to cover. The Commission could vote to approve the Resolution currently before it. If the Commission wants to deny the project, MARCH k 2015 PAGE 33 PLANNING • •'„ ACA/Eggart responded that the law on this matter is actually pretty complicated. He asked Chair/Low if she would like for him to go through the parameters of the law and Chair/Low said she would if he would please be brief. ACA/Eggart stated, so as staff said, the Planning Commission's ability to act on this area is firstly preempted by the Federal Telecommunications Act. In considering and acting on the present application, the Commission is limited to applying the standards set forth in the City's Code, and those standards are generally set forth in the Draft Resolution i.e., the required Findings. As he said, any denial has to be in writing and supported by substantial evidence. Section 332(c)(7) of the Federal Telecommunications Act expressly prohibits the City from denying or regulating the placement or construction of wireless facilities on the basis of environmental effects of radio frequency emissions to the extent that facilities comply with the FCC's regulations on radio frequency emissions which would be a condition of any approval. Finally and importantly, the Federal Act provides that a city's action on an application cannot unreasonably discriminate among providers of wireless services and cannot prohibit or have the effect of prohibiting the provision of personal wireless services by a particular carrier. What that means is that a basis of the denial cannot be that AT&T provides coverage in the area, therefore it does not matter whether T -Mobile does or not. This is not a legitimate basis under the Federal Law. T -Mobile has to have an opportunity to compete with AT&T essentially. Secondly, if T -Mobile has a significant gap of coverage in the area and they have presented evidence that there is a gap of coverage, the question is whether it is "significant" and the Commission's discretion is further circumscribed and, T -Mobile could potentially challenge it. If.there is a significant gap in coverage T -Mobile can show, they would also have to show that the manner in which they propose to fill that gap is the least intrusive on the values that the denial seeks to serve. Presumably, any denial would be based on aesthetics grounds and, that placement in a park is incompatible with the public's use of the park. T -Mobile would have to show that it is this particular monopine at this specific location that is the only way possible to close the coverage gap. So, when the Commission is making Facts and Findings, consider whether evidence of alternatives have been provided. C/Farago said he did not believe there was evidence provided that shows that any other alternative sites were presented to the Commission other than the park and other locations within the park in addition to the representation of denial at the school. Other than that he has seen nothing else in looking at the coverage map that any other areas were considered and brought to this Commission, so basically all the Commission has to are consistent with what he has heard from the Commissioners and they can say "yes, that's what we want you to write" and direct staff to do it. In that case the Commission would not have to continue the public hearing. The applicant has said he wants a decision. In that case staff would bring back the Resolution without a public hearing at the next meeting for the Commission's approval on consent calendar without public testimony. C/Mahlke asked for clarification. One of the key phrases she heard ACA/Eggart was "least intrusive." If the Commission decides to vote tonight with the idea that this vote hangs on what has been presented tonight and the Facts provided to the Commission have not been shown to be the "least intrusive" and the Commission does not necessarily say that it is not "aesthetically pleasing." If the Commission picks "least intrusive" as a potential reason to say "no" to this particular idea does that mean that the applicant can reapply with more Findings of Facts and reopen the issue or is it an entirely new application process and would that be potentially different than if the Commission had decided to deny the project on something else like "aesthetics." Either way, is the Commission leaving the door open for reapplication? ACA/Eggart suggested that the Commission state all of their reasons for requesting a denial. Chair/Low recognized CDD/Gubman who asked to consult with ACA/Eggart. Chair/Low responded affirmatively. ACA/Eggart asked if the Commission wished him to articulate as best he could on the fly a general outline of the Findings he would propose to put in a Resolution for the Commission's consideration. Chair/Low said yes, based on tonight's discussion. ACA/Eggart said that in order to approve this application the Commission needs to make each and every one of the Findings required by the Municipal Code. That includes the five required Findings for a Conditional Use Permit, as well as, the Findings required by Section 22.42.130 for Wireless Facilities. Based on the comments he heard from some of the Commissioners he would say that the Commission would say that Findings 3, 4 and 5 of the Conditional Use Permit Findings cannot be made. Finding 3 is "that the design, location, size and operating characteristics of the proposed use are compatible with existing and future land uses in the -- vicinity." He would surmise that the Commission would say that this particular cell tower facility, its size and location, given the size, location and MARCH 0 2015 PAGE37 PLANNING :`.NCOMMISSION does not wish to do so. He is just putting it out for consideration. Chair/Low said that it was part of the consideration. However, it does meet the distance requirement. ACA/Eggart said he would not include that as a Finding. ACA/Eggart concluded that "not the least intrusive" means to address the aesthetics issues raised and the issues of interfering with the public's use of the park in which it is proposed, primarily based on Commissioner comments that it is unclear that there are no alternative sites proposed outside of this park that could provide coverage in this area. CDD/Gubman asked to address the topic of co -location. For informational purposes, Finding No. 6 for these wireless telecommunications facilities, lists certain orders of preference for types of facilities. The intent of the City's Telecommunications Ordinance is to encourage co -location in order to reduce the number of individual structures. So that is the basis for the co -location. The City would indeed expect this park, if deemed to be an appropriate location for wireless telecommunication facilities, to have more carriers who would wish to locate on the facility in the park. And the guidance in the Ordinance for co -location is to minimize those aesthetics and the over -intensification effects of multiple poles rather than fewer co - locatable poles. C/Farago asked if what ACA/Eggart outlined was for the Commission to move forward with a motion for a Resolution of Denial as outlined by counsel that the Commission votes on this evening, and that the Resolution would be brought back without public hearing or comment which is pretty much at the request of the applicant that a decision be made tonight. ACA/Eggart said that was what he just outlined. C/Farago amended his motion to direct staff to prepare a Resolution of Denial as outlined by ACA/Eggart because the Commission cannot make the Findings of Fact as required for an approval. C/Nishimura seconded the amended motion. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: NOES: COMMISSIONERS: ABSENT: COMMISSIONERS: Farago, Mahlke, Nishimura, VC/Pirritano, Chair/Low None None ACA/Eggart stated that the applicant has 10 days to file an appeal from the date of the Planning Commission's final decision. Because the Commission will not be adopting the Findings of Fact to support the denial until the next t 1, 1 .,.111111111111; 1111�,,.. ADJOURNMENT: With no further business before the Planning Commission, Chair/Farago adjourned the regular meeting at 10:24 p.m. The foregoing minutes are hereby approved this 24th day of March, 2015. Attest: Respectfully Submitted, Greg Gubman Community Development Director Ruol� Low,hairperson Agenda No. 6.3 CITY OF AM• ID BAR DIAMOND BAR CITY HALL -THE WINDMILL ROOM 21810 ! 'CA91765 FEBRUARYr 1 CALL TO ORDER: C/Owens called the Parks and Recreation Commission meeting to order at 7:00 p.m. in the City Hall Windmill Room, 21810 Copley Drive, Diamond Bar, CA 91765. PLEDGE OF ALLEGIANCE: Commissioner Herndon led the Pledge of Allegiance. Present: Commissioners Dave Grundy, Lew Herndon, Kim Hsieh, and Chairman Ted Owens Vice Chairman Benny Liang arrived at 7:15 p.m. Staff Present: Bob Rose, Community Services Director; Anthony Jordan, Parks Mainte"fianee'Superintendent; Christy Murphey, Recreation Superintendent; Crystal Knox, Community Services Coordinator, and Debbie Gonzales, Administrative Coordinator MATTERS FROM THE AUDIENCE: None CALENDAR OF EVENTS: As presented by CSD/Rose 1. CONSENT CALENDAR: 1.1 Approval of Minutes for the January 22, 2015 Regular Meeting. C/Grundy moved, VC/Liang seconded, to approve the January 22, 2015 Minutes as presented. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: NOES: COMMISSIONERS: ABSTAIN: COMMISSIONERS: ABSENT: COMMISSIONERS: 2. INFORMATIONAL ITEMS: Grundy, Hsieh, VC/Liang None Herndon, Chair/Owens None 2.1 Recreation Program Update— RS/Murphey C/Hsieh asked if it would look bad to put new (banners) up piecemeal when necessary instead of spending $26,000 now for total replacement and RS/Murphey said it would not be aesthetically pleasing to have different banners going up at different times. C/Hsieh said they might not be changed out unless the City spends $26,000 to change them out. If FEBRUARY 26, 2015 1Mi• you think about the next three years and there are 50 or 60 people from the City in the armed forces the City will be using the same design. So she wondered if the City Council would be okay to replace the banners as needed. In addition, if the family members wanted to update a banner perhaps if they could pay half of the cost to change it out it would seem more reasonable to her. C/Herndon said he was concerned that by phasing in the change the City might be giving the impression it was giving some people more exposure than others. Looking at the cost he would not recommend spending $26,000 either but if there are some banners with pictures and some without it could create an image problem for some. C/Hsieh said the changes might not happen but to her $26,000 is a lot to spend and wondered if there were options for the transition to all new banners. CSD/Rose explained that the matter of changing the banners to photos does not require a recommendation from the Parks and Recreation Commission; however, staff can pass along the suggestion to the City Council for their consideration. C/Hsieh asked how long the banners have been displayed and CSD/Rose responded between 8 and 10 years. Chair/Owens asked if the initial cost of the banners was incurred by the City -,,and CSD/Rose responded "yes." The City pays all of the charges. Tkre'residents are not charged any amount. Chair/Owens asked if the residents who want to have banners put up apply to the City and CSD/Rose responded affirmatively stating that the family submits the application and the City verifies the information to the extent that it can because the military will not confirm any of the information. Staff verifies residency, etc. CSD/Rose said that the suggestion will be forwarded to the City Council as a suggestion. 2.1.1 Power Point Presentation on Program Evaluation for Contract Classes, RecTrac (Mobile Web Registration Tracking) System and an update on the upcoming Bridal Show - CSC/Knox C/Grundy asked if staff noticed a significant uptick for reservations for weddings after people attend the bridal show and CSC/Knox responded that there were a few. The issue is that the Diamond Bar Center books two years in advance and the Center is almost completely booked up every Saturday until October 2016. When these shows take place most of the brides in attendance are already Diamond Bar Center brides and those that are not have to wait since there are no Saturdays available in the short term. FEBRUARY26,2015 PAGE 3 P&R COMAISSION There was a vendor who rented several Saturdays at the Center and they were able to book those dates at the bridal show. CSD/Rose asked CSC/Knox if she reported that when people go to the website for activity registration on a smart phone, the system recognizes that the individual is on a mobile device and automatically switches to the mobile app. CSC/Knox said that once people log on their individual phones will begin to recognize the website so that it can be saved as a favorite or tab. CSD/Rose asked if staff would have to go through Vermont Systems to provide any updates to the system or does staff have that capability in house. He noticed that the City's. old email address has ci and CSC/Knox said that issue can be corrected by staff on RecTrac and is probably something that shows on the website now so that staff would need to update its own web view. C/Hsieh asked if there was a calendar page on the City's website that listed all community events for a one page view rather than having to go to sub -categories of senior or youth events, etc. CSC/Knox responded that the City website has activities on its City Calendar but it does not include all of the recreation programs such as senior dances, etc. C/Hsieh wondered if it would be helpful to see all upcoming activities for the months ahead in order to plan their personal calendars. CSC/Knox said that recreation classes are scheduled quarterly so they would be listed on that basis. C/Hsieh said she would like to see not only the classes but excursions and other types of events so that people can plan ahead. CSC/Knox reminded C/Hsieh that all of the events are listed in the Recreation Guide that is mailed to all residents, the Guide at the Diamond Bar Center and all of the information in the Recreation Guide is on the website. C/Hsieh reiterated that -since changes are being made she would like to see a page showing the activities for the months coming up in a calendar setting. CSC/Knox said she would look into testing the system by adding events. VC/Liang said he believed C/Hsieh was referring to the same type of Calendar of Events which he has for LA County and that he would forward it to staff. CSC/Knox said the program has a Special Events Calendar and it is formatted in the same way in which staff saves each activity. It gets a little messy when one attempts to add classes because it does not add just the start date or end date, it fills in the entire calendar and with 200 classes it could get lost in the system because it is too much information. CSC/Knox felt it would be a great idea to attempt to begin the process with the senior dances and special activities where they are one -day activities. There is a RecTrac training coming up on FEBRUARY26,2015 PAGE 4 P&R COMMJSSION March 26 and this is something she will be able to look into at that time. C/Herndon said he was more interested in net revenue as opposed to gross revenue and someone reminded him off mike that these programs are not intended to "make" money. C/Herndon said he wanted to be sure the programs were at least reimbursing the General Fund. He plays softball in Anaheim at Modjeska Park and noticed they have banners at the front of the park that advertise for weddings, receptions, meetings, parties, birthdays, reunions, etc. and he does not know how effective it is but there may be people in this community that do not realize they can rent some of the City facilities. He showed a photo of the banners and asked if staff could check with Anaheim to see if the banners had increased the use of their facilities. CSC/Knox said that the City has been fortunate that "word of mouth" has worked in most cases. For special events like the bridal show there will be banners that will be going up. For the Diamond Bar Center the City also advertises on a regular basis on several bridal websites and through "Here's the Guide" a bridal magazine. Public Information does a lot of the advertising for the Diamond Bar Center as far as picnic reservations. In addition there is signage in the park near the shelters that refers people to the Diamond Bar Center. Staff can look into additional banners. 2.2 Parks Report- PMS/Jordan Chair/Owens asked if any of the surrounding cities were experiencing wire thefts and PMS/Jordan responded that he had not heard of any. In terms of backflows he hears the same concerns from water district employees in outlying areas. It appears to be cyclical and trends at various points. C/Hsieh again spoke about dog excrement on the sidewalk along Pantera Drive by the school and saw several people walking with more than six dogs that left excrement in that location. She provided pictures of the occurrence.. The rain eventually carried it away. She suggested placing a doggie bag dispenser at the site with signage asking that people_ please pick up after their dogs along the park area. PMS/Jordan said he did not believe it would be a problem to put a dispenser along Pantera Drive adjacent to the park property. Some of what the picture shows is by the school and staff would not be able to place anything close to the school. CSD/Rose said that on Pantera Drive there is an area adjacent to the dog park but it is up on Pantera Drive where they park and take their dogs down to the park. PMS/Jordan agreed that it was south of the first residence and said that staff could probably do something in that area as well. PAGE ; R, O1 L- O.. C/Hsieh said she has observed more excrement near the park entrance and perhaps a dispenser could be placed at the stairs that will be built and perhaps one on the other side along the main entrance. C/Herndon recommended that a letter be sent to the Boy Scouts thanking them for their contribution to the City and PMS/Jordan said he would follow up with Parks and Maintenance Inspector/Technician, Dave Seiler, the staff member who facilitates these events. CSD/Rose asked if the letter should come from the Commission and C/Herndon responded affirmatively. 2.2.1 Power Point Presentation on the Longview North, Longview South and Stardust Mini -Park future improvements — PMS/Jordan C/Hsieh asked if there was a significant issue with ants in parks and PMS/Jordan said the City has little black picnic "Argentine" ants everywhere. Other than them getting into picnic baskets, etc. there is not much to worry about. The red imported fire ants are tough to control. They pop up in the City's mini -parks and they are prevalent at Peterson Park, Lorbeer Middle School, Heritage Park, Sycamore Canyon Park and Starshine Park. They are quite a nuisance and if a small child were to step on a mound or sit on the ground the ants could become very, very aggressive and their sting is painful. The contractors treat them with Extinguish which is a corn meal base with a chemical and the worker ants feed on it and take it back to the colony as feed. The chemical sterilizes the male so that he cannot fertilize the eggs and another chemical acts like an appetite suppressant which causes them to not want to eat so the colony is slowly killed off. If one were to go in aggressively trying to kill these ants they would react by sending out more queens, which would cause the population to spread out and colonize again. This is an ongoing problem for most cities. 2.3 CIP Projects — CSD/Rose 2.3.1 Pantera Park Trail and Steep Canyon Trail - CSD/Rose reported that these two trails are under design. The project is fully funded with grant funds to pay for the design and construction. The goal is to have these trails constructed by the end of the calendaryear. To date, the engineering consultant is conducting surveys to determine the route for each trail. The Pantera Park Trail will have a staircase coming down from Pantera Drive leading to the dog park as well as, over to the trail that goes up the steep slope. There will also be a path that goes from Pantera Drive up toward the water tanks. 2.3.2 Diamond Canyon Park Design — CSD/Rose stated that Lennar Homes has submitted the construction documents which are once again going through plan check. All amenities have been verified FEBRUARY 26, 2015 PAGE 6 P&R COADUSS10N and Lennar reports that they will have the park constructed by next fall. In addition, 113 housing permits have been pulled out of a total of 180 homes that will be built. Progress is moving forward at a significant rate. For the park feature there are a lot of utility issues on Brea Canyon Road and Diamond Bar Boulevard that affect its construction. Once these issues are resolved, construction will commence. Staff will be working with LA County for the permit to bring the pedestrian bridge across the Brea Canyon channel which will need to go to the Board of Supervisors and to the City Council for approval. 2:3.3 Design of Heritage Park Improvements — CSD/Rose explained that the consultant team continues to obtain public input on the project. The team has conducted stakeholder meetings and has intercepted people at the park for their input which will be presented to determine what amenities should be constructed at the renovated park. There is a possibility of a telephone survey which has not yet been determined. There is a great deal of information within the original Parks Master Plan process which is becoming somewhat dated which is the reason for considering a follow up telephone survey for this project, . 2.3.4 Design of Longview Park South & Star Dust Park — CSD/Rose referred Commissioners to PMS/Jordan's presentation. Staff received the construction documents which are now in the second round of plan check. These are the two final parks that require ADA Retrofit and the Consumer Safety Product issues resolved as well as accessibility to play areas. All of the other parks in the City have been retrofitted and are now ADA Accessible. Staff anticipates completion of construction sometime during the next fiscal year. Staff is expecting proposals by next Friday for design of the swing set. 2.3.5 Dog Park Improvements — CSD/Rose indicated that ValleyCrest is working on the mainline, which will bring irrigation to the dog park area where 50 trees will be planted. These improvements are expected to be completed by the end of this fiscal year. C/Herndon asked about the status of Larkstone Park and CSD/Rose -responded that nothing is happening at this time. His understanding is that the last developer sold it to a new developer and the area is going through the ownership change which has stopped all forward progress. Staff assumes that once the new owner gets control of the property progress will resume. C/Hsieh said it appeared the new stairs from Pantera Drive to the dog park would not be completed for a year and asked if the reason for it taking so long was the design. CSD/Rose responded that the dog park is a bonus and the steps are for the trail which is being paid for, by grant ,-EBRUARY 26, 2015 PAGE 7 P&R COMMISSION funds for the trail and it has to be designed and constructed. Staff is on an accelerated path and the consultant has been told that this project needs to be done as quickly as possible. His schedule indicated that it would be finished in October but according to history, CIP projects tend to take longer than first thought because unexpected issues often come up during the process. October would be the earliest completion date possible. The process is the project gets designed which is a six week process that includes construction documents; it goes to plan check which for each time is about a 10 -day process; after it is plan checked it goes back to the consultant to be revised; it goes back to plan check and if everything is complete and acceptable the project goes out to bid; the bid process is a six-week process; the contract is awarded which is another six-week process (selection and approval); upon award of the contract, the contractor has 10 days to submit the necessary paperwork which has to be reviewed by the City Clerk; the documents are then sent back to staff and a pre -construction meeting is held after which the project moves forward. The project is a 120 day (four month) project and with that timeline the project is most likely into October or if anything goes wrong it moves into November or December. C/Hsieh asked where the project is at this point and CSD/Rose reiterated that staff walked with the designers and they know what path they are taking and they are doing the survey so that when they start putting together the construction documents they can articulate on the drawings where exactly the trail will go and where the grading stakes will go. The consultant will do a conceptual design for staff and the conceptual plan will be brought to the Commission for its recommendation and after approval it may go to the City Council which is determined by the City Manager. Once the conceptual design is approved the construction documents will be started. It is very expensive to make changes to construction documents once they are started so everything must be in order and approved. 2.3 List of Pending Commission Requests — CSD/Rose reported on the following items: 2.4 1) Pursuit of a grant to construct a trail connection from Silver Tip Park to Pantera Park— CSD/Rose said there was no further update at this time. 2) Heritage Park Special Needs —will be included in planned project. 3) Stairs at the Dog Park— As discussed. 4) City You Tube Videos — Include recreation programs, facilities, trails, etc. that have been added and updated and will continue to be updated. CSD/Rose said he had not had an opportunity to view You Tube and was not aware of whether the trails, etc. had been included. 5) Trails Descriptions— This has been added to the multi-year CIP list FEBRUARY 26,2015 PAGE • 1 1,.. t... and Council will consider the priority of those items to determine which fiscal year the item will move to. With so much of the trail done at Summitridge and Sycamore Canyon it may be time to put up some nice signage that shows the path and describes what the trail has. Staff is requesting an update of the Trails Master Plan as well. 6) Request for Diamond Bar Center Bricks and 'Tiles to be used as a Fundraiser (C/Herndon) — The request has been presented and CSD/Rose said he has not yet received any feedback from the City Manager. C/Herndon said there was no urgency on this matter. 7) Additional Walkway Lights at Peterson Park — the estimated cost is about $200,000 including conduit, wire, poles and lights. There are some future improvement plans for the park which are being done in phases, the first of which is the parking lot which is currently being designed. Staff is hoping the parking lot can be expanded so that when one approaches from Sylvan Glen close to Golden Springs there will be two rows of diagonal parking spaces. Currently, one side is diagonal and the other side is parallel which does not leave much room for drive through. The intent is to widen the parking into the park and move the walkway in the park into the grass area to accommodate two rows of diagonal parking. The project is budgeted and the schedule for completion this summer. If the walkway is moved into a grassy area which has to be removed it will present a storm water runoff issue which will have to be mitigated by collection of the storm water onsite which will in turn require a filtration system. To do the design and construction of the additional water retention system will be very expensive. The project is over budget. The City Manager said go forward with the design with the expanded parking lot which is in the Parks Master Plan and staff will most likely have to ask the City Council for an additional appropriation before the project goes out to bid. 3. OLD BUSINESS: None 4. NEW BUSINESS: None 5. ANNOUNCEMENTS: C/Hsieh thanked PMS/Jordan for saving the City money. She thanked staff for the great reports and information. C/Grundy thanked staff for the great job they do and for all of the reports and information. It is always great to hear all of the things staff is doing for the City. VC/Liang thanked staff for all of the reports and especially to CSC/Knox for the new apps which are very helpful. C/Herndon said that staff knows he thinks they do a wonderful job. He FEBRUARY 26, 2015 PAGE 9 P&R COMMISSION commented that the Diamond Bar Community Foundation continues to raise funds to provide more sports fields for the kids in the City and the Foundation has a little more than $50,000 in the bank at this point which is a drop in the bucket with all of the issues discussed this evening. He reminded everyone that the Foundation is holding its golf tournament on Monday, May 11 which will help raise additional funds. It is his hope that at some point in the future these funds will be utilized to benefit the City. Chair/Owens thanked staff for their support and for all of the information imparted to the Commission. ADJOURNMENT: With no one objecting and no further business before the Parks and Recreation Commission, upon motion by C/Herndon, seconded by VC/Liang, Chair/Owens adjourned the meeting at 8:30 p.m. The foregoing minutes are hereby approved this 26tlday of March , 2015. Resp U IIy-S bmitted, ECRETARY Attest: �- TED OWENS, CHAIRMAN CITY OF DIAMOND JANUARY8,2015 Agenda No. 6.4(a) Chairman Mok called the meeting to order at 7:00 p.m. in the Diamond Bar City Hall Windmill Community Room, 21810 Copley Drive, Diamond Bar, California 91765. PLEDGE OF ALLEGIANCE: VC/Carrera led the Pledge of Allegiance. ROLL CALL: Commissioners Surendra Mehta, Ed Pechy, Manisha Sulakhe, Vice Chair Ted Carrera, Chair Mok Also Present: David Liu, Public Works Director; Sterling Mosley, Assistant Engineer; Christian Malpica, Associate Engineer; John Beshay, Associate Engineer, and Marcy Hilario, Administrative Coordinator. I. APPROVAL OF MINUTES: A. Minutes of the November 13, 2014 Regular Meeting. VC/Carrera moved, C/Sulakhe seconded, to approve the Minutes of the November 13, 2014 regular meeting as presented. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Mehta, Pechy, Sulakhe, VC/Carrera, Chair/Mok NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: None II. PUBLIC COMMENTS: None III. ITEMS FROM STAFF: A. Receive and File Traffic Enforcement Updates for: 1. Citations: October, November and December 2014 2. Collisions: October, November and December 2014 3. Street Sweeping: October, November and December 2014 JANUARY 8, 2015 PAGE 2 T&T COMMISSION C/Sulakhe moved, C/Pechy seconded, to receive and file the Traffic Enforcement Update reports for October, November and December 2014. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Mehta, Pechy, Sulakhe, VC/Carrera, Chair/Mok NOES: COMMISSIONERS: None. ABSENT: COMMISSIONERS: None PWD/Liu followed up on previous inquiries from Commissioners. At the November meeting, Commissioner Pechy commented on the August, September and October 2014 reports. He noticed the DUI collisions were not accompanied by DUI arrests. In following up with the Sheriffs Department, staff learned that when coding DUI collisions, there is automatically an arrest associated with that collision. Conversely, a DUI arrest does not necessarily mean there was a collision. Also, there are some instances that an arrest is not made until after the fact; therefore, the reporting might not reflect that information. PWD/Liu responded to VC/Carrera's comments regarding a reduction (declining trend) for the months of August, September and October in street sweeping citations. Staff learned that, for example, in August, the officer switched from a motorcycle to a patrol car and began working alongside the CSO; therefore, there were two officers issuing citations, which resulted in a spike for that month. During subsequent months, the Sheriffs Deputy resumed his motorcycle duties which resulted in one CSO working the street sweeping schedule. Average monthly citations with one CSO are between 200 and 300, and if more than 400 citations are logged, it means that there is an additional officer working the street sweeping schedule. VC/Carrera stated that the City did not intend to make this a revenue generating operation. He liked the consistency because it indicated to him that the City was doing everything possible to notify residents and hoped they would come to appreciate the program and how it works. He believes no one wants to be ticketed and that residents do their best to be aware. He likes to see the lower numbers which reflects that everyone is doing their job. C/Sulakhe shared that she lets visitors know they cannot park on her street on street sweeping days. PWD/Liu indicated that staff works with residents to accommodate special events and contractors working at their homes. C/Mehta stated that it seemed that there were more than 100 citations every month and asked how many hours the CSO patrols. PWD/Liu responded that the CSO generally travels in front of the street sweeper from 6:00 a.m. to about 2:00 or 3:00 p.m. on scheduled street sweeping days. JANUARY 8, 2015 PAGE 3 T&T COMMISSION Chair/Mok added that last Tuesday he observed that his neighbor had a car parked in front of his house and there was a Sheriff's vehicle stopped behind the parked car. The Sheriff was there after the street sweeper had left the area. PWD/Liu explained that the CSO and street sweeper are in constant radio contact and the Sheriff's vehicle was most likely parked to issue the citation. Chair/Mok said he noticed there was no citation on the vehicle and wondered if citations were issued electronically. Staff responded that citations are issued by a hand-held machine that generates a receipt -like citation. These are much smaller than original citations previously issued. C/Sulakhe inquired about USPS not delivering mail if a vehicle is parked in front of a freestanding mailbox. AE/Mosley stated that it is a USPS policy to not deliver mail if the mailbox is inaccessible. Depending on the driver, exceptions are made and there is a standard applied regarding how close the vehicle is parked to the mailbox. IV. OLD BUSINESS: None V. NEW BUSINESS: None VI. STATUS OF PREVIOUS ACTION ITEMS — AE/Malpica responded to a previous request from VC/Carrera to look into the limit line issue on southbound Golden Springs Drive at Grand Avenue. Following an analysis, the City's traffic consultant has recommended that a limit line should be installed at the southbound left -turn pocket 15 feet back from the existing limit line. The installation of the limit line is scheduled to be done during the week of January 12tH VII. ITEMS FROM COMMISSIONERS: C/Pechy inquired about the City's modification of the Diamond Ride Program that became effective last month. He asked if staff had any statistics to indicate whether the modification resulted in a reduction of cost. PWD/Liu responded thatthe changes became effective on December 1st and he anticipates reviewing the statistics for December 2014 in the next week or two. On average, the City was spending between $40,000 and $50,000 a month to support the program; therefore, the City wants to be sure it can continue to serve as many eligible residents as possible. C/Mehta expressed his concerns about entry to the Diamond Bar Center at night. He stated that most of the use of the Diamond Bar Center is at night and drivers attempting to enter the left turn pocket to turn into the Diamond Bar Center, traveling east on Grand Avenue, have difficulty seeing the left turn. C/Sulakhe added that the Center does not appear on the GPS system and the seniors are given the Diamond Bar Center helpline number to find their way. If the sign read 1600 Grand Avenue, it would allow drivers to go in the correct direction. C/Mehta suggested a lighted sign JANUARY 8, 2015 PAGE 4 T&T COMMISSION that would allow patrons to view the sign from a greater distance. VC/Carrera wished everyone a happy and prosperous new year. He asked about the conflict of traffic coming off the eastbound SR -60 hook ramps at Brea Canyon Road onto Golden Springs Drive and attempting to make a left turn to enter McDonald's and the Chevron gas station. He has observed drivers crossing over double yellow lines with on -coming traffic attempting to turn from Golden Springs Drive onto Brea Canyon Road. This causes traffic back-up coming off of the freeway and down the hook ramps onto Golden Springs Drive. He asked if the intersection would be revamped when the hook ramps are eventually moved and if something could be done in the interim such as a "keep intersection clear" type of striping similar to what is near Coco's Restaurant. PWD/Liu responded that there is no short term plan to modify that intersection to lessen the congestion. However, hook ramps will be removed after the new on and off ramps are built off of the SR -60 at Lemon Avenue, for which construction is slated to commence summer of this year. This is planned to be an 18 month project. The hook ramps will not be removed until the new eastbound on and off ramps are built. C/Sulakhe reported the K -Mart Plaza is now very dark now that the K -Mart has closed. She expressed concerns about shopping in the area in the evenings. PWD/Liu stated that while this is not a Traffic and Transportation Commission issue, any concerns will be forwarded to the appropriate department or agency. In this case he will speak with the Planning Department and Sheriffs Department to let them know about the issue. Chair/Mok asked C/Sulakhe if subsequent to the K -Mart closing, she noticed whether the lights were completely off or if only some were off. C/Sulakhe responded they were all off and the only lights she could see were the McDonalds lights at the opposite end of the plaza. Perhaps it was an anomaly. Chair/Mok said it would be very unusual to have all lights off, especially because the Auto Zone and Ken's Ace Hardware are still open for business and have lighting in their business frontage. Chair/Mok shared while reading the Diamond Bar newsletter today, he noticed an article welcoming the Walmart Grocery in the space that Ralph's Market previously occupied. He wondered if there was a plan to put in some striping for additional parking. PWD/Liu responded that he is not aware of any parking additions. VC/Carrera asked if the requirements were the same for the Walmart Grocery as they were for the Ralph's Market with respect to parking per square foot. PWD/Liu confirmed that issue was reviewed. The Walmart Grocery is smaller than the previous Ralph's Market and; therefore, the formula has not changed. C/Mehta expresses his concerns that there would be an on-going parking issue because it is already difficult to find parking close to his bank (Bank of America). He experienced the same difficulty with parking when Ralph's Market was open and he feels it will be even more problematic when the Walmart Grocery opens. JANUARY 8, 2015 PAGE 5 T&T COMMISSION A. Grand Avenue Beautification Project — AE/Beshay reported that on Wednesday, January 7th, a meeting was held for all contractors interested in bidding the project. Approximately fourteen (14) contract companies met with the City's design team. Topics of discussion included the scope of the project, Federal Funding Compliance, schedule and timelines, work hours and traffic control. At the conclusion of the meeting and discussion, an addendum was issued to adjust the mandatory nighttime work hours and lane closure requirements to ensure a quality product and competitive bid pricing. Bid opening is scheduled for Tuesday, January 13th at 2:00 p.m. Depending on the results of the bid opening, a contract for construction will be presented to City Council on either January 20th or February 31. The Engineer's cost estimate is $1.575 million and construction is scheduled to begin on or before March 2, 2015. In preparation for this project, Southern California Edison intends to perform a vault replacement at the southwest corner of Grand Avenue and Diamond Bar Boulevard (near US Bank) which will require extensive construction work at that intersection. Staff will be working very closelywith Edison to ensure commencement of the workwithin the nextweek or two to have it completed before the proposed March 2nd start date for the project. PWD/Liu added that staff has indicated there will be a lot of activities in 2015 in terms of construction and Public Works improvements. As mentioned, if everything goes according to plan, this beautification project will start at two locations: Grand Avenue at Diamond Bar Boulevard and Grand Avenue at Longview Drive. In preparation of these events, the utility companies must complete their work before the project begins. In addition to replacement of the vault, new conduit will run across Grand Avenue and south on Diamond Bar Boulevard. PWD/Liu wanted to make sure the Commissioners were aware that the perception of the general public will be that for the next 12 or so months, there will be a lot of concerns on the part of residents about why all of these projects are happening at the same time. He explained that the City does not have control about how the utility companies move forward with their work and staff is doing everything possible to minimize the impacts. As it happens, the need to upgrade the utilities has nothing to do with the beautification project, it just happened to coincidentally occur at this time. Therefore, staff is attempting to have the utility companies look at the possibility of doing the work during the nighttime rather than during the daytime. C/Pechy asked if the City considered enhancing the decoration for patriotic and seasonal events as part of the beautification project. During the recent holidays, for example, aside from a few strategically placed banners, there were very little, if any, seasonal decorations put up. PWD/Liu stated that residents who serve in the military are acknowledged with banners that are kept up year-round along the major boulevards. He said he would convey C/Pechy's inquiry. JANUARY 8, 2015 PAGE 6 T&T COMMISSION B. Comprehensive Groundwater Drainage Study —AE/Malpica stated that due to additional field assessments, the study has been delayed and is now scheduled to be delivered to staff by the consultant by the end of January. C. Traffic Signal Battery Backup Project — AE/Malpica reported that the contractor has partially completed the burn test of 13 batteries and one will be tested next week. Following completion of the test, the inspector will provide a "Punch List" which should be completed by the end of next week. Subsequently, the Notice of Completion will be scheduled to be taken to the City Council for approval during an upcoming City Council meeting. D. Morning Canyon Rehabilitation Project—AE/Mosley indicated that the bid opening for this project was December 16th. The project scope of work includes removing and replacing 16 existing pine trees from Diamond Bar Boulevard to Stone Pine Street along Morning Canyon Road with roadway and other concrete improvements. The project received eight (8) bids with the lowest apparent bidder being CEM Construction Corporation with a base bid amount of $194,330 and an alternate bid item for tree removal and replacement in the amount of $48,000, for a total bid amount of $242,330. The Engineer's estimate is $250,000. At this time, staff is vetting CEM Construction including checking references to verify responsiveness of the bid. The bid award is scheduled for a City Council meeting in late January/early February. VC/Carrera asked if the $48,000 bid included the tree removal. AE/Mosley confirmed that amount included tree removal and replacement. C/Mehta asked for details of the Morning Canyon Road project which were provided by AE/Mosley. The roots of the 16 pine trees have uplifted the roadway, sidewalk and curb and gutter on the street. In order to mitigate the situation, it will be required to remove the existing 16 pine trees and as much of the root systems as possible. The roadway treatment will include a near full -depth reconstruction and a grind and overlay for the half of the street not affected as well as, new curb and gutter, sidewalk, etc. and the replanting of new tree species. PWD/Liu added that about five years ago, the City ground down most of the roots and smoothed the roadway pavement on Morning Canyon Road. As long as these invasive trees continue to grow they will continue to undermine and lift the roadway pavement and sidewalk areas. In short, the City has done all it can to provide safe roadway and sidewalk areas and preserve the trees. Residents will react to the loss of the trees and staff will continue to dialogue with the residents about what needs to happen and what new trees will be installed as replacement trees. JANUARY 8, 2015 PAGE 7 T&T COMMISSION E. Lemon Avenue Interchange Project—AE/Beshay reported that the right-of- way phase of this project remains on track with a certification date of February 1, 2015. Project plans are expected to be submitted to the District Office of Engineer this month for final approval. Once approved, the project will be listed with a projected construction start date of late summer 2015 and continue for approximately 18 months. F. Area 2 CDBG Sidewalk Replacement Project — AE/Beshay indicated that this project in the neighborhood bounded by the SR -57/60 to the west, Grand Avenue to the north; Diamond Bar Boulevard to the east and Pathfinder Road to the south had a bid opening on November 19, 2014. Thirteen (13) bids were received and TSR Construction and Inspection was the successful low bidder with a bid of $124,420. The Engineer's cost estimate for this project was $190,000. City Council awarded the construction contract to TSR on December 2, 2014 and the pre -construction meeting has been held with work slated to begin either January 26th or February 17th. The date will be finalized next week and depend on the contractors' work completion scheduled in other cities. The project will have multiple phases including the demolition of old sidewalks. The City's arborist will take two to three days to evaluate up to 80 trees to determine whether root pruning or complete tree removal is required. This process will take approximately two weeks and once the arborist's report is received, the contractor will move forward accordingly. Once the treatments have been completed, the contractor will pour the new sidewalk. Residents whose property fronts the project area will be notified about the work schedule. PWD/Liu further explained that in advance of a slurry seal project, which typically takes place during the summer months when school is out, the City moves forward with tree removal and sidewalk repair. Diamond Bar did not receive the usual amount of CDBG funding in 2014 and while staff was planning and programming the sidewalk project, we learned that there was an opportunity for additional funds which came to the City in October 2014 after the slurry seal projects were completed. This allowed the City to proceed with the sidewalk repair work. Therefore, in this exceptional case, the tree removal may create minor damages to the slurry seal project which will be mitigated on a case-by-case basis. G. - .Willow Heights Construction Update — AE/Mosley reported that All American Asphalt will begin the mobilization for the roadway improvements on January 12th for this project. The project includes roadway widening and landscape improvements along Diamond Bar Boulevard as well as, Brea Canyon Road to facilitate access to the Willow Heights frontage. Improvements will be performed per the recommendations of the approved Traffic Impact Analysis and the Developer Agreement. Additionally, a new traffic signal will be installed at the intersection of Cherrydale Drive and Diamond Bar Boulevard along with landscaping and striping modifications. Construction will begin in the vicinity of Diamond Bar Boulevard/Cherrydale Drive intersection so that the new signal and project entry is completed in JANUARY 8, 2015 PAGE 8 T&T COMMISSION March 2015 for the grand opening of the model homes. Improvements in the vicinity of Diamond Bar Boulevard and Brea Canyon Road will be completed this summer. VC/Carrera asked if the traffic light installation would include a turn lane in and out of the area. AE/Mosley indicated that it would. PWD/Liu added the new signal at Cherrydale Drive off of Diamond Bar Boulevard will be the main ingress/egress for the Willow Heights Development. VC/Carrera asked if there would be additional lighting up and down the south part of the street. PWD/Liu responded affirmatively. The traffic signal at Brea Canyon Road and Diamond Bar Boulevard will be updated this summer and will include signal and intersection improvements. Also, the signal poles will be replaced with decorative signal poles similar to the beautification upgrades along Diamond Bar Boulevard at Grand Avenue and Grand Avenue at Longview Drive. C/Mehta asked if there would be protected left turn lanes on Diamond Bar Boulevard onto Cherrydale Drive. AE/Malpica responded that there will be left turn pockets; however, he would have to review the plans to determine whether they would be protected (turn on green arrow only) or protected permissive (turn on green arrow and green light). H. Reagan/Peterson Parks Parking Lot Construction — AE/Beshay indicated that this project is in the design phase and staff will be meeting with the design firm to finalize the project estimates. Based on the initial design concepts, there will be 64 parking spaces for Peterson Park (an increase of 34 stalls) and 44 parking spaces for Reagan Park (an increase of 12 stalls). The design phase is scheduled to be completed by the middle of February 2015, with construction to commence at the end of June. Chair/Mok asked where the additional parking stalls would be for both parks. AE/Beshay explained that Reagan Park has a circular turnout; therefore, staff is looking to removing the turnout and adding the parking stalls along both sides. Chair/Mok asked if there would be another turnout close to the tennis courts. AE/Beshay responded "no". The design includes an empty space for a u -turn at the end of the aisles in the first parking lot. The sidewalk will be pushed back further into the park to create the additional spaces at Peterson. Chair/Mok asked if the disabled parking spots would be moved. AE/Beshay said there would be one more disabled spot added to both parks in the area of the current disabled parking spots. Chair/Mok asked if the additional parking spots would impact any existing structures such as the restrooms or trash areas. AE/Beshay responded "no." Staff is meeting with the design engineer on Tuesday and once there is agreement on the location of the parking spots and final design, staff will bring the design drawings to the Commission for their information. PWD/Liu stated that last month, the City Council reorganized. The new Mayor is Steve Tye and the new Mayor Pro Tem is Nancy Lyons. On Monday, January 5th, the City Council interviewed 11 candidates to fill the unexpired JANUARY 8, 2015 PAGE 9 T&T COMMISSION term of Council Member Ling -Ling Chang during its adjourned regular meeting. At the conclusion of the interview process, the City Council selected former Traffic Commissioner and current Planning Commissioner Jimmy Lin, who served as Planning Commission Vice Chairman, to fill the unexpired term through November 2017. CC/Cribbins administered the Oath of Office to C/Lin. During Tuesday's regular City Council meeting on January 6, 2015, C/Lin was introduced to the residents. IX. SCHEDULE OF FUTURE CITY EVENTS: As stated in the agenda. ADJOURNMENT: There being no further business to come before the Traffic and Transportation Commission, Chair/Mok adjourned the meeting at 8:23 p.m. The foregoing minutes are hereby approved this /k day of y(<^:/ 2015. Respectfully Submitted, i Da ' G. Liu, Secretary Attest: Chair Ken Mok Agenda No. 6.4(b) CITY OF DIAMOND BAR MINUTES OF THE TRAFFIC AND TRANSPORTATION COMMISSION MEETING FEBRUARY 12, 2015 CALL TO ORDER: Chairman Mok called the meeting to order at 7:05 p.m. in the Diamond Bar City Hall Windmill Community Room, 21810 Copley Drive, Diamond Bar, California 91765. PLEDGE OF ALLEGIANCE: Commissioner Mehta led the Pledge of Allegiance. ROLL CALL: Commissioners Surendra Mehta, Ed Pechy, Vice Chairman Ted Carrera, Chairman Mok Commissioner Manisha Sulakhe arrived at 7:10 p.m. Also Present: David Liu, Public Works Director; Kimberly Young, Senior Civil Engineer; Sterling Mosley, Assistant Engineer; Christian Malpica, Associate Engineer; John Beshay, Associate Engineer, and Debbie Gonzales, Administrative Coordinator. APPROVAL OF MINUTES: A. Minutes of the January 8, 2015 Regular Meeting. VC/Carrera moved, C/Mehta seconded, to approve the Minutes of the January 8, 2015 regular meeting as presented. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Mehta, Pechy, VC/Carrera, Chair/Mok NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: Sulakhe II. PUBLIC COMMENTS: None FEBRUARY 12, 2015 PAGE 2 T&T COMMISSION k1rA &A r_1 a A. Receive and File Traffic Enforcement Updates for: 1. Citations: November, December 2014, January 2015 2. Collisions: November, December 2014, January 2015 3. Street Sweeping: November, December 2014, January 2015 VC/Carrera moved, C/Mehta seconded, to receive and file the Traffic Enforcement Update reports for November and December 2014, and January 2015. Motion carried by the following Roll Call vote: AYES: NOES: ABSENT: IV. OLD BUSINESS: V. NEW BUSINESS: COMMISSIONERS COMMISSIONERS: COMMISSIONERS: None None Mehta, Pechy, VC/Carrera, Chair/Mok None Sulakhe VI. STATUS OF PREVIOUS ACTION ITEMS — PWD/Liu stated that at the last Traffic and Transportation Commission meeting, C/Pechy asked staff to provide information regarding changes to the Diamond Ride Program along with statistics/costs associated with the program. The changes became effective on December 1, 2014 and prior to the changes becoming effective, staff established a budget amount of $575,000 for the current Fiscal Year. Based on usage of the program, the costs prior to December 1, 2014 amounted to $50,000-$60,000 per month, indicating that the $575,000 budgeted amount would not be sufficient to cover the program. After two months under the modified program, the cost for December 2014 was $26,756 and for January 2015 the cost was $23,950.75, a significant monthly reduction of about 50 percent. The average monthly passenger count for July 2014 through November 2014 varied from 2800 to 3300. The passenger count for December 2014 was 1502, and for January 2015 it was 1830. In November 2014 there were a total of 1149 trips inside of the City with almost 1700 trips outside of the City. For the month of December 2014 there were 847 trips inside of the City and 655 outside of the City. For the month of January 2015, 1253 were inside of the City and 577 were outside of the City. The purpose of the program modification was to make certain that the Diamond Ride Program was not a primary mode of transportation and that non- medical trips are primarily confined to Diamond Bar to encourage shopping in Diamond Bar. The average cost of trips during this fiscal year through November 2014 averaged about $21 per trip. For the month of December 2014 the average cost per trip was reduced to $16.20 and for January 2015 the average per trip cost was FEBRUARY 12, 2015 PAGE 3 T&T COMMISSION reduced to $14.52. The trend indicates a maximization of the City's resources and provides a more effective and efficient program for those who need it. PWD/Liu provided an overview of the General Plan update reportfor January 1, 2014 through December 31, 2014 that was presented to the City Council on February 31d. State law requires each city to prepare and adopt a comprehensive long-term General Plan to guide its physical development. This is a policy document comprised of Goals, Objective and Strategies for implementation. He showed examples of how the report speaks to implementation progress and how the City is meeting its Regional Housing needs for the community in each of the following categories including land use, housing, resource management, public health and safety, circulation and public service and facilities. C/Carrera asked about the origin of the TIGER Grant and PWD/Liu responded that it is e federal grant. C/Carrera asked if the City applied for that grant and PWD/Liu responded that it did so in conjunction with the City of Industry. C/Carrera asked if the developer of the tire store next to the carwash backed out of the project. SCE/Young responded that the issue is that there are contaminated soils and as a result, America's Tire Company is leasing the property from the property owner and the property owner is in negotiations with the past retail gas station supplier to determine how they will clean up the site. The project is still scheduled to move forward and is on hold until the contaminated soil issue is resolved. Chair/Mok asked if that was also true of the Diamond Jim/condominium project. SCE/Young responded that Chair/Mok was correct. C/Mehta asked why projects are finished at one site and opened up a year or two later at the same site causing a great deal of inconvenience to the public. PWD/Liu asked if C/Mehta was asking about the phasing appfoach for the SR -57/60 Confluence Project and responded that it has to do with funding. The SR -57/60 Confluence Project primarily addresses weaving issues and in order to solve these issues that covers two miles and ultimately 14 lanes of traffic, it is a major project that has been under development for many years and estimates for the total project total almost $260 million. To date, the City of Diamond Bar along with the City of Industry have been able to secure only about $56 million; therefore, there is a shortfall of $200 million. By phasing the project, the project will be built in a sequence that best utilizes available funds. Also, the project phasing follows a logical sequence that will facilitate construction activities in subsequent phases. The project has been identified in the L.A. County's Long -Range Transportation Plan; however, funding for that project does not come into the picture until 2029. This project is both a regional and national issue because the project has now been included at the federal level as a Project of National and Regional Significance. This means if federal funding opportunities become available in the future, this project will now qualify. FEBRUARY 12, 2015 PAGE 4 T&T COMMISSION C/Mehta asked if staff could provide a rendering of the proposed confluence project and PWD/Liu said he would do so at the next meeting. C/Pechy stated that under Objective 1.3 (Preserving Integrity of Neighborhoods and Discouraging Through -Traffic) he said he could not help but notice, especially at Golden Springs Drive eastbound turning lane onto Diamond Bar Boulevard northbound, that the turn signal stays on for as long as needed to accommodate all of the queued vehicles. The turn signal for traffic turning onto Grand Avenue from Diamond Bar Boulevard remains on for an extremely long period of time for southbound traffic; however, for traffic traveling northbound and turning from Diamond Bar Boulevard onto Grand Avenue, the turn signal stays on for a very short period of time. Also, the turn signal for traffic turning off of Golden Springs Drive onto Grand Avenue heading toward Walnut remains on for an extremely long period of time. It is human nature to take the path of least resistance. One of the first things people do when going from one place to another is to find the quickest route and it seems to him that the City is encouraging people to get off of the freeways and to take Brea Canyon Road and up Golden Springs Drive, cut across Golden Springs Drive to Diamond Bar Boulevard. Drivers know that at the other end, even if they are #13 or #14 in line, that light will wait for them and he believes it is causing an increase in congestion. PWD/Liu responded that staff does its utmost to make sure that the signal timing plans for major intersections address the needs of all motorists including those of the residents. It is a balancing act because Diamond Bar has only a few arterials and at the same time, whatever the City does can impact its own residents as well. Residents living in neighborhoods that come up to the boulevards or major streets use the same intersections as non-residents/cut through traffic use. The main problem lies in the freeway deficiencies and until the SR -57/60 is fixed, Diamond Bar streets will be used to the advantage of all drivers including cut -through traffic. If the timing of those particular traffic signal lights was shortened, the real losers could be the residents who would be waiting and waiting to proceed through their own city. The City spends millions of dollars to improve and maintain its intersections and roadways for the benefit of its residents. AE/Malpica explained that there are three different signal timing plans: morning, midday and afternoon. The difference between those three plans is their cycle length. As an example, during the morning hours the complete cycle is 144 seconds and in an intersection with 8 phases. C/Pechy said it was not a matter of how long one has to wait but a matter of encouraging or discouraging traffic. The way it works now, it encourages people to take these routes to cut through Diamond Bar because they know the light will wait for them and that they can save time by cutting through Diamond Bar, which is what the City is trying to discourage. C/Pechy added that businesses are being hurt because of the traffic backup and the inability for people to access those businesses and get back out onto the streets. PWD/Liu responded that staff has taken every opportunity to re -locate or modify some of the commercial driveways and encourage shopping centers to provide better ingress and egress. The current signal synchronization may not be a perfect solution; however, at this time it is a balancing act between providing a solution for businesses FEBRUARY 12, 2015 PAGE 5 T&T COMMISSION 1T/III and residents, while doing everything possible to alleviate cut through traffic. It is clear that the sooner the SR -57/60 freeway improvements can be done, the better for the City of Diamond Bar. C/Carrera stated he did not believe it was possible to discourage anyone from cutting through Diamond Bar at this time. Northbound SR -57 traffic from 2:30 p.m. is brutal. For example, this afternoon the traffic was backed up to Lambert Road; therefore, motorists exited onto Brea Canyon Road in mid-afternoon. By rush hour, there was a long line coming through Brea Canyon Road to cut through the City. As PWD/Liu said earlier, until the matter of the SR -57/60 Confluence is resolved, Diamond Bar will continue to have this problem regardless of a 5 or 10 second traffic signal time modification. AE/Malpica explained that these concerns are the primary reason staff activates traffic signal timing at least 30 minutes prior to rush hour, so that instead of having cars wait through three or four traffic signals, it can be cut down to two during peak traffic hour. C/Sulakhe said that waiting 144 seconds is almost 2.5 minutes which is a long time during the rush hour. In her opinion, if the signal were given more time, it would be convenient only for people coming off of the freeway. AE/Malpica responded that as previously mentioned, there are three signalization plans including midday, which allows 110 or 120 seconds. Bear in mind that some intersections are 8 -phase intersections; therefore, in order to move traffic through those intersections, there has to be a long -cycle length. Either staff moves traffic in small platoons and have long backup lines or move a larger number of vehicles at one time, which is how the cycle kicks in according to the traffic. C/Sulakhe said her concern is more about people getting on and off the freeway. ITEMS FROM COMMISSIONERS: VIII. INFORMATIONAL ITEMS: A. Wayward Trucks in Washington Street Neighborhoods — AE/Malpica stated that this matter came as a complaint from residents of the condominium complex on the cul-de-sac at the end of Washington Street. They complained about trucks going all the way to the end of the cul-de-sac and not being able to make it across to the City of Industry's industrial park, therefore finding it difficult to make a u -turn to get out of the cul-de-sac. In response, staff installed restriction signage at the Washington Street and Brea Canyon Road intersection to let truck drivers know that trucks over 5 tons were not allowed to use Washington Street. However, some drivers have ignored the signs and have continued to use Washington Street. As a result, staff is looking into constructing a cul-de-sac at Washington Street and Lincoln Avenue. Staff will retain a traffic consultant to design the project to discourage truck drivers from using Washington Street. A semi cul-de-sac narrows the street to allow for two passing passenger vehicles and trucks will not be able to traverse the area. The project will be similar to what was constructed on Sunset Crossing Road FEBRUARY 12, 2015 PAGE 6 T&T COMMISSION (by the YMCA/Diamond Bar -Walnut Family Center) just prior to the end of the cul-de-sac past Prospectors Road. Once the consultant has provided a project design, staff will bring the matter back to the Commission for an update. Chair/Mok asked what would happen if the project was completed and a truck were to inadvertently enter the area. He asked if it would result in a worse conclusion than what is now in place. SCE/Young responded that the idea is that when a truck approaches the narrow cul-de-sac area, rather than attempting to get through the cul-de-sac area, the driver will turn right onto Lincoln Avenue and right onto Lycoming Street back to Brea Canyon Road. This will enable the truck to leave the area without having to complete any backup movements and/or u -turns. C/Carrera asked if the problem included UPS and FedEx trucks. AE/Malpica responded that he believes the problem is that some vehicles are using outdated GPS systems. SCE/Young stated that staff was told by the condominium complex that the biggest problem is with semi -trucks. Chair/Mok asked if there would be additional signage. He recommended additional signage along Washington Street once the project design is brought forward. B. Comprehensive Groundwater Drainage Study —AE/Malpica stated that staff received the draft study in January and it is currently under review. C. Traffic Signal Battery Backup Project —AE/Malpica reported that the project and punch list have been completed and staff is taking the Notice of Completion to the City Council on Tuesday, February 17t' for consideration. As part of this project, 14 additional battery backup systems were installed for a total of 33 units citywide. The purpose of these units is to provide signalization to maintain normal operation and red flashing for the intersections during power outages for several hours. D. Edison Upgrades at Diamond Bar Boulevard and Grand Avenue — AE/Malpica shared that this project consists of Southern California Edison making improvements to existing circuits that serve residential and commercial customers in the vicinity of Grand Avenue, Diamond Bar Boulevard and Quail Summit Drive, including all shopping centers. These improvements will be completed in two phases. Phase I includes trenching for new conduit that runs from the northwest corner of the intersection, through the intersection and south along Diamond Bar Boulevard, which has been completed to Montefino Drive and is scheduled to continue on to Quail Summit Avenue. Phase I is scheduled for completion prior to March 2nd. Phase II includes replacing a deteriorated underground vault box at the southwest corner of the intersection of Grand Avenue and Diamond Bar Boulevard in front of the US Bank. On February 8th, Edison erected barriers and began preparing the site by removing the underground concrete and existing older vault which will be replaced with a larger vault. This will provide more efficient energy to businesses and FEBRUARY 12, 2015 PAGE 7 T&T COMMISSION residential areas within the vicinity. This portion is scheduled to be completed prior to March 2nd. The trenching work is being done primarily at night to create as little traffic flow interference as possible. E. Morning Canyon Rehabilitation Project—AE/Mosley stated that the scope of work is to rehabilitate Morning Canyon Road from Diamond Bar Boulevard to Stone Pine Drive, including replacement of concrete items and reconstruction of a catch basin as well as, the removal of 16 pine trees along the project limit. Existing trees will be replaced with a species which is friendlier to the infrastructure. After review of bids, staff's recommendation is to move forward awarding the project to All American Asphalt. Last night, staff conducted a community outreach meeting to inform the public of the project's specifics beginning with a recommendation for City Council approval on March 3rd C/Carrera commented that the tree roots are huge. PWD/Liu shared about 16 residents attended the neighborhood meeting, with 140 notices sent out. He went on to explain that the majority of residents who attended the outreach meeting wanted to save the trees. However, as previously stated, the arborist has indicated that further attempts to retain those trees would present a potential liability to the City. Staff feels very strongly that this project needs to be completed and the trees need to be removed. The attendees feel very strongly about saving as many trees as possible; however, as explained to them, these tree roots will continue to create a hazardous condition. AE/Mosley indicated that regardless of whether this project moved forward, some of the trees are in a bad state. C/Mehta asked staff for a copy of the Arborist's report. AE/Mosley stated that staff will be meeting with another Arborist to obtain a second opinion, as requested by the residents. C/Mehta then asked if the public would be involved with the second report. AE/Mosley responded that the second opinion is being sought as a direct request of the public and the information will be disclosed to the public once received. Chair/Mok asked if it would be helpful if the second Arborist was present at the second outreach meeting so that the residents would receive the information directly from the expert. PWD/Liu stated that, in terms of the follow up meeting, the residents will have the opportunity to attend the City Council meeting on March 3rd F. Gas Company Upgrades at Golden Springs Drive and Grand Avenue — AE/Mosley reported that the scope of work for this project is to upgrade an existing 3" main, found just south of Lavender Drive, to a 4" main along Golden Springs Drive to the intersection of Grand Avenue. This is being done for the purpose of accommodating increasing demand for AQMD's natural gas operations. The project will move forward in three phases with Phases 1 and 2 having intermittent lane closures. Working hours for Phases 1 and 2 have been restricted to accommodate motorists from 9:00 a.m. to 3:00 p.m. Phase 3 connects at the intersection of Golden Springs Drive and Grand Avenue. FEBRUARY 12, 2015 PAGE 8 T&T COMMISSION Staff has requested that this work be done at night. Staff is currently coordinating post construction restoration with the gas company and once restoration is agreed upon, construction will commence with an approximate duration of four to six weeks. G. Grand Avenue Beautification Project- SCE/Young stated that as reported at the last meeting, there was a pre-bid meeting on January 7th. Subsequently, on January 14th, eight (8) bids were received with the lowest bid submitted by Unique Performance Construction at a bid of $1,749,425.80; however, because the project is federally funded, there is an 18.4 percent DBE (Disadvantage Business Enterprise) requirement for the contractors to attempt to commit to. Review of Unique Performances bid indicated that they were unable to make a sufficient good -faith effort to meet the 18.4 percent DBE requirement. Unique committed to .34 percent out of the 18.4 percent required and the supporting documentation of their good -faith efforts to obtain DBE participation was deemed insufficient by the City's Federal Compliance Consultant. In order to not lose the federal funds, which amount to more than $1 million, the City submitted the review of the DBE Good Faith Efforts of the low bidder to Caltrans who administers the federal funds. Caltrans concurred that the low bidder, Unique Performance, was insufficient, and the City was entitled to recommend rejection of Unique's bid; therefore, allowing to award the contract to the second low bidder, All American Asphalt. Their bid was submitted in the amount of $1,939,000. Also, All American Asphalt committed to 11.4 percent DBE. The engineer's estimate was $1.575 million; therefore, All American's bid is $400,000 over the engineer's estimate. As a result, staff will be requesting appropriations from City Council from various funding sources that include savings from the Area 2 Residential-Collector/Zone 1 Slurry Seal Project, savings from the Prop C funds as a result of the reduced expenditures in the Diamond Ride Program, gas tax funds that have not been appropriated elsewhere, and additional funding appropriation requests from Traffic Mitigation funds. This contract will go to Council for consideration on February 17th. As of today, Unique Performance has indicated they plan to protest staffs recommendation to reject their bid and award to All American Asphalt. Staff has submitted their protest submission to the City Attorney who has reviewed the submission and indicates that the City is within the authority of the federal Code of Regulations to reject their bid. If Council chooses to award as indicated to All American Asphalt, staff anticipates construction will begin in March, with full completion by early summer. H. Lemon Avenue Interchange Project — SCE/Young explained that staff was hoping to have a submittal to the Office of the Engineer last month; however, at the Project Development Team meeting last month, the OE was present and gave the designer a checklist of items that needed to be met prior to submitting to the OE. Therefore, the designer is working on that checklist of items and anticipates submitting to the OE by the end of February. Also, staff anticipated getting the Right -of -Way certification in February, which now appears to be anticipated for March. The project is still on schedule to begin construction this summer, with completion 18 months thereafter. FEBRUARY 12, 2015 PAGE 9 T&T COMMISSION appears to be anticipated for March. The project is still on schedule to begin construction this summer, with completion 18 months thereafter. Willow Heights Construction Update — SCENoung reported that there are a lot of activities on and around the project site. Houses are going up very quickly. To date, two phases of each product have been released for building permits and the builder anticipates getting the third phase of each product building permits released in March. Staff anticipated a model grand opening in March, which has been pushed back to April 18th. Most, if not all, of the frontage improvements will be completed, including the landscaping along Diamond Bar Boulevard and intersection traffic signal improvements at Cherrydale Drive and Diamond Bar Boulevard. VC/Carrera asked if the street lights would be installed prior to the grand opening. SCENoung responded that street lights are installed through a separate Los Angeles County and SCE process and she is not aware whether they will be completed by model opening in April. Plans have been approved by the City and it is now a matter of the developer moving the process through the County and SCE for final approval and installation. Area 2 CDBG Sidewalk Replacement Project — AE/Beshay indicated that the contractor commenced work on January 26th. The first week, the contractor removed the sidewalks, curb and gutter, and ramps. The following week, the City's Arborists evaluated up to 80 trees to determine root pruning or complete removal and accordingly, 13 trees were removed. The contractor will pour the remaining sidewalks next week and the week following. C/Pechy asked if this„ project was based on tree damage. AE/Beshay responded that the project was initiated to mitigate tree damage and install handicapped ramps. K. Reagan/Peterson Park Parking Lot Construction —AE/Beshay referred the Commissioners to the plans. He stated that the first plan shows an aerial view of the existing Peterson Park and the second sheet is the proposed concept design which consists of widening the parking lot to add 34 parking stalls; removal of existing curb and sidewalk and installation of new curb and sidewalk; complete rehabilitation of the parking lot, improved drainage for the park parking lot; addition of one handicapped parking stall; and upgrade of the existing curb to ADA compliance. Sheet 3 shows the bio -filtration area and how extension of the parking lot triggered the need for a low impact development as part of the storm water permit required by the State Water Board, which indicates that the City needs to prepare a bio -filtration system currently in design. The system will be located southwest of the parking lot. C/Sulakhe asked if the bio -filtration system would be located in the parking lot. AE/Beshay's responded "no", the bio -filtration system will be in the green area, which is outside of the parking lot. FEBRUARY 12, 2015 PAGE 10 T&T COMMISSION AE/Beshay continued that the second attachment is for the Reagan Park parking lot. The first attachment is an aerial view of the park, as it exists. The second sheet is the concept design which consists of removal of the turn- around area; installation of 12 parking stalls; removal of existing curb and gutter and median; installation of new curb; removal and replacement of damaged sidewalk; upgrading existing curb ramps to new ADA compliance; and upgrading existing driveway approaches to meet ADA compliance. IX. SCHEDULE OF FUTURE CITY EVENTS: As stated in the agenda with the addition of Item H. State of the City Address, March 25, 2015-6:00 P.M. —Diamond Bar Center, 1600 Grand Avenue. Chair/Mok wished everyone a Happy Valentine's Day and Presidents' Day. ADJOURNMENT: There being no further business to come before the Traffic and Transportation Commission, Chair/Mok adjourned the meeting at 8:30 p.m. The foregoing minutes are hereby approved this %_'� day of Wk2015. Respectfull ed, i DaW G. iu, Secretary Attest: Chair Ted Carrera Agenda # 6. 5 Meeting Date. - April 7, 2015 CITY COUNCILS - �/ AGENDA REPORT .0 oR2otti7", TO: Honorable Mayor and Members of the City Council FROM: James DeStefano, City Manager TITLE: Ratification of Check Register dated March 12, 2015 through April 1, 2015 totaling $ 1,005,308.73 RECOMMENDATION: Ratify. FINANCIAL IMPACT: Expenditure of $ 1,005,308.73 in City funds. :7G[�l :(e7 :Z�1�1► I X71 The City has established the policy of issuing accounts payable checks on a weekly basis with City Council ratification at the next scheduled City Council meeting. DISCUSSION: The attached check register containing checks dated March 12, 2015 through April 1, 2015 for $ 1,005,308.73 is being presented for ratification. All payments have been made in compliance with the City's purchasing policies and procedures. Payments have been reviewed and approved by the appropriate departmental staff and the attached Affidavit affirms that the check register has been audited and deemed accurate by the Finance Director. 2=01VC0009", NO Luisa Allen Accounting Technician REVIEWED BY: Finance Director Attachments: Affidavit and Check Register — 3/12/15 through 4/01/15. CITY OF DIAMOND BAR CHECK REGISTER AFFIDAVIT The attached listings of demands, invoices, and claims in the form of a check register including checks dated March 12, 2015 through April 1, 2015 has been audited and is certified as accurate. Payments have been allowed from the following funds in these amounts: Description Amount General Fund $589,896.03 Comm Org Support Fund $400.00 Prop A - Transit Fund $206,806.12 Prop C - Transit Tax Fund $6,279.26 Intergrated Waste Management Fund $15,147.80 Com Dev Block Grant Fund $36,885.21 LLAD 38 Fund $16,719.90 LLAD 39 Fund $14,847.64 LLAD 41 Fund $6,070.19 Capital Imp Projects Fund 112,256.58 $1,005,308.73 Signed: L Dianna Honeywell 4�— Finance Director N O o 0 0 o ... 0 0 o O o O o 0 0 . o o ... o Zo p % 1p O N N O 1+1 Ol 1I1 O O O ✓1 Ifl O O O N O c0 O {� m O N O IO m O N I� Ol O C L(1 O L` M N N 1l1 L� OJ L` Ifl m � II1 O M O N O QI ry N l0 O m N N N N a WE U U Q U aQ x o 0 0 0 0.O o00 o O O o 0 0 0 0 00 0 000 a 0 0 0 000 0 0 a O O o 0 0 000 000 0 0 0 0 0 0 000 000 0 0 0 0 0 0 0 0 0 0 000 0 0 000 m W a a m w w w w o mm w w z u F U E F U a a s W U E q w r m U U z H m q z H z H 0.l q W a .] a E E w w a q q m q z H 1In E H 0 E U '> w q u CFa] q m Qq 1 U \ U] E u aW W q q 1 w OO a x O w 1L a u a w a �> a x a w 1 u U u w M Mm w U m E O 1 1 O I m E W E H O 0 O N N w £ r E V >U z V H w w H m N o W p U E F H w F E W W E H v] > H cL F U U E W H F ry yU' µU' 0 Q ap z z [QU.+ O m E U W U U q U CHJ U N w u W Z U 2 a 3 u u W O Q OO a W q Q a x Q O O W w w O W z z W Q Q mN o m u w u u. w au ww m w u w m a> u x ww a w ww w a 0 In WEW wE O a W H x In m q ro 7 �lr m N H m O O O N m O 0 N 0 O O O 00 O O W q m In In In N c In N w m m No N N a H \ m M m m N o a m m M o O vI In m q o q vI In In In vI a a In d� In w a a o 0 m H O �y�y .-i ri N N ri N I(1 Ifl N N rl N N N ri ri o N N N o N N N q O q O O O O O O N N O O O O O O O O O O If1 ✓1 O O w O O O o O O N N O O O O o O O O O O O O N N O O o O ow o a O zz � w w N tF/l o E vl rwq vl H [9 W V l/I VI U 'N H W vl H H U W o W z W W x U E a a fY o U H In y z w z W x H H x N W m a z m H H w' w' O 0 [# W Q z H C7 z a H C7 H U U W O N [O a s a m 0 OU 1 m O x E U o In a ow' U a 2 r E F z W u F O `y2H U zEzy 4 1 m 1x-1 H yNy o Z 4 Q a W W 40 E a u: a w H a W W W N O U W m fx H Q a s x H U O 3 O q W q a' Q q CG a Wq H fx z f a qg q z z z QFC 0 H qw o g o g rzQ� QW' oyd' H a ra W z a Q a a q E 0.l 0.l a s x U a U U U U Q 0 z q q W F E A O W x w z,z,, F Q q qq m W S Q E q P H x x v xf WN u FC H a o o H H F u a w w q m H w z z x E F m v o q w w u a E m ww xx as as a E W Q a x F W o r H o w N oo m z HH xl z wy mm ^.G w H a Q W m a s a s w w w w w w m a y� x F H w O w E m x Q H mW E E m s H 8 ww a s u Q Q Q� �a w mm mm w u u u u u g q Q q q qq w w ww ✓ V F I(1 Ifl V1 Ifl t(1 111 ifl N Ifl ✓1 tll Ifl Ifl III Ifl Ifl Ill Ifl Ifl N Ifl Ifl I(1 Ifl Lfl VI u w q N ri N N i-1 ri N N N N N N N N N ri ri N N N N N N N N N N W N N N N N N N N N N N N N N N N N N N N N N N N N N If1 'a N N ri N N N ri ri N N N ri N N N N N ri N N N N N N ri fl w z SJ\ W m m m O M mm Oo M M M o o m M M Mm H !JO z . 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H H UW 1 P U !9 W W O x o 000000ry o 0 0 0000or.� rC WU F(; O 0000000 O O O OOOONO .� O O O m W H In 1 U H N N H N N N H N N H N N N H F H E H CITY COUNCIL Ia>xroua'�e9 j98`� TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Mang TITLE: Treasurer's Statement— February 015 RECOMMENDATION: Approve the February 2015 Treasurer's Statement. FINANCIAL IMPACT: No Fiscal Impact BACKGROUND: Agenda # 6.6 Meeting Date: Apr. 7, 2015 AGENDA REPORT Per City policy, the Finance Department presents the monthly Treasurer's Statement for the City Council's review and approval. This statement shows the cash balances with a breakdown of various investment accounts and the yield to maturity from investments. This statement also includes an investment portfolio management report which details the activities of investments. All investments have been made in accordance with the City's Investment Policy. PREPARED BY: Susan Full, Senior Accountant REVIEWED BY: L - Dianna Honeywell, Finance D ctor Attachments: Treasurer's Statement, Investment Portfolio Report CITY OF DIAMOND BAR - CITY TREASURER'S REPORT CASH BALANCE AS OF FEBRUARY 28, 2015 BEGINNING CASH BALANCE CASH RECEIVED $28,982,133.34 Cash Receipts $1,717,875.47 Total Cash Received $1,717,875.47 $30,700,008.81 EXPENDITURES Checks Written ($1,147,902.78) Payroll Transfers (374,366.78) Wire Transfers (2,069.92) Returned Checks (26.40) Charge Card Fees & Other Adjustments (3,597.87) Total Expenditures ($1,527,963.75) CASH BALANCE AS OF: FEBRUARY 28, 2015 $29,172,045.06 TOTAL CASH BREAKDOWN Active Funds General Account ($228,746.06) Payroll Account $50,022.28 Change Fund $1,200.00 Petty Cash Account $500.00 Cash With Fiscal Agent $3.32 Unamortized Discount on Investments $13,536.09 Total Active Funds ($163,484.37) Investment Funds: Local Agency Investment Fund $7,445,928.45 Corporate Notes $500,000.00 Federal Agency Callable $10,237,040.60 Bank Negotiable CDs $9,672,423.31 Wells Fargo Advantage Money Market Fund $1,480,137.07 Total Investment Funds $29,335,529.43 CASH BALANCE AS OF: FEBRUARY 28, 2015 $29,172,045.06 Average Yield to Maturity 0.876% FY2014-15 Year -To -Date Interest Earnings $166,522.50 FY2014-15 Budgeted Annual Interest Earnings $223,100.00 CITY OF DIAMOND BAR INVESTMENT PORTFOLIO SUMMARY REPORT for the Month of February 28, 2015 INVESTMENTS BOOK VALUE PERCENT OF PORTFOLIO TERM DAYS TO MATURITY YIELD TO MATURITY Local Agency Investment Fund $7,445,928.45 25.38% 1 1 0.260 Corporate Notes $500,000.00 1.70% 1461 1438 1.855 Federal Agency Issues - Callable $10,237,040.60 34.90% 1,606 662 1.006 Negotiable CD's - Banks $9,672,423.31 32.97% 1,363 11025 1.295 Wells Fargo Sweep Account $1,480,137.07 5.05% 1 1 0.010 Total Investments and Averages $29,335,529.43 100.00% 1035 594 0.876 TOTALS $29,335,529.43 100.00% N/A N/A N/A MONTH ENDING FISCAL YEAR-TO-DATE February 28, 2015 2014-15 TOTAL INTEREST EARNED $19,811.35 $166,522.50 "/ 1 certify that this report accurately reflects all City pooled investments es DeStefa 0 and is in conformity with the investment policy of the City of Diamond Bar City Treasurer approved by City Council and on file in the City Clerk's office. The investment program herein provides sufficient cash flow liquidity to meet the next six months estimated expenditures. 3/25/2015 Date Page 1 UN V R m CC1 N c=7f%N 0 O T t0 t N U o IL U- 0. O m m m O Ip O E `o n o m a N N o � e N C M N W m o O L � o T � � N � N M � �M.. of O V N M N m E Ol W I3. N A w U ai N N > a a N N O) LLJ W M N C M N W m o O L W N T � M= � O N G O I, �M.. of N W m E N L A w U A N J > a a OI T y a LL a 4 m E m A w U w N m O > a OI T y Z w U a C C m❑ rn E? ¢ a m E N O. 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Q~ K O C=7 d o w> Q z 'r o M o co o M M m M O r u1 N m � N r m N P N Y1 m n m a U o 0 gr N y 0 Y W o o 0 0 w O ll m a� E E y b .41 "o 0 a d > r N E � O a y H M r O R N q O O E � N O Q m m y oS � y N V M O f0 N a I O O a v Y A N Ip ro V W O y i M O O y 0 W Q w O ll m a� E E y b .41 "o d > r N o O a m O O R O E r.- N a Q m fC y oS O O y 0 O Q w O ll U O w .41 "o a i O a a' N C a Q m CITY COUNCIL Agenda # 6.7 Meeting Date: April 7, 2015 AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Man g TITLE: APPROVE CONTRACT AMEN MENT NO. 1 WITH TAIT AND ASSOCIATES INC. FOR THE COMPREHENSIVE GROUNDWATER DRAINAGE STUDY IN THE AMOUNT OF $9,070. RECOMMENDATION: Approve. UPTITTRETIlliff FXW The Fiscal Year 2014-2015 Capital Improvement Program (CIP) Budget includes $100,000 of Measure R Funds for a comprehensive groundwater drainage study. Council approved a contract with Tait and Associates Inc. on August 5, 2014 in the amount of $60,475, including a contingency amount of $10,000 for a total authorization of $70,475. A change order in the amount of $9,860 was authorized to Tait for additional analysis at Brea Canyon Cut -Off and Oak Crest Drive and Closed Circuit Television (CCTV) pipe inspection review and coordination. During the analysis, staff determined that the location at 21325 Hipass Drive was necessary and added to the evaluation list which will cost an additional $9,070 for Tait's services. Additionally, CCTV inspection and pipe cleaning services in the amount of $8,920 were also performed to complete the analysis. If Amendment No.1 is approved, the project budget is as follows: Budget Breakdown: Expenditure Balance Budget $100,000 Project Cost $70,475 $29,525 Amendment No. 1 $9,070 $20,455 CCN & Pipe Cleaning Services $8,920 $11,535 Is7i�1'ilil>< The study is to develop a comprehensive plan and priority list to address several areas of groundwater and/or surface area drainage that staff has observed for several years. These areas require on-going maintenance and attention beyond routine drainage maintenance. The areas being evaluated are: a. Groundwater under Cold Springs Lane just east of Diamond Bar Boulevard b. Groundwater drainage onto Flap Jack Drive cul-de-sac through curb core c. Ambushers Street groundwater through existing parkway drains d. Golden Springs Drive sidewalk drainage near Rancheria Road (Northminster Church) e. Brea Canyon Road sidewalk drainage near Sapphire Lane (Edison Pole Drainage) f. Drainage onto Copley Drive in front of City Hall through parkway drain g. 20834 Moonlake drainage through parkway drain h. 20532 Calpet drainage through parkway drain i. Groundwater under Cleghorn Drive just north of Grand Avenue j. Brea Canyon Cut -Off at Oak Crest Drive k. Seepage and poor surface drainage at 21325 Hipass Drive Christian Malpica, Associate Engineer March 12, 2015 REVIEWED BY: David G. Liu, Director of Public Works Dianna Honeywell, Finance Director Attachment: Amendment No. 1 Exhibit "A" — Tait and Associates Inc. Proposal, dated March 10, 2015 2 AMENDMENT NO. 1 TO CONSULTANT SERVICES AGREEMENT This Amendment No. 1 to Consultant Services Agreement ("Amendment No. V) is made and entered into as of April 7, 2015, by and between the City of Diamond Bar, a municipal corporation ( "City"), and Tait and Associates Inc., (herein referred to as the "Consultant") with reference to the following: A. The City and the Consultant entered into that certain Consultant Services Agreement dated August 5, 2014, which is incorporated herein by this reference (the "Original Agreement"); and B. The City and the Consultant desire to amend the Original Agreement to modify, amend and supplement certain portions of the Original Agreement. NOW, THEREFORE, the parties hereby agree as follows: 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement. 2. Revised Scope. The nature and scope of the specific services to be performed by Consultant are as described in Exhibit "A", the Consultant's Proposal, dated March 10, 2015. 3. Compensation. City agrees to compensate Consultant for each service which Consultant performs to the satisfaction of City in compliance with the schedule set forth or as referenced in Exhibit "A". 4. Integration. This Amendment No. 1 and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein, and supersede all negotiations with respect hereto. This Amendment No. 1 amends, as set forth herein, the Original Agreement and except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this Amendment No. 1 and the terms and provisions of the Original Agreement, the terms and provisions of this Amendment No. 1 shall control. IN WITNESS hereof, the parties enter into this Amendment No. 1 on the year and day first above written. 1 "CONSULTANT" TAIT AND ASSOCIATES, INC. By: Printed Name: Title: By: Printed Name: Title: 2 "CITY" CITY OF DIAMOND BAR Steve Tye, Mayor ATTEST: Tommye A. Cribbins, City Clerk APPROVED AS TO FORM: David DeBerry, City Attorney YA N EXHIBIT "A" Additional Services Agreement (ASA) DATE March 10, 2015 PROJECT NAME Contract# Citywide Comprehensive Drainage Study PROJECT NO. ME03460 Addition) Service No. 2 CLIENT PM: Christian Malpica ITAIT PM: David Sloan ADDITIONAL SERVICES TASK DESCRIPTION FEE REQUIRED A-6 Prepare & Review Geotech Report and Incorporate Data in to Hipass Design Report $9,070.00 TOTAL THIS AGREEMENT $9,070.00 Contract Status Original Contract: $ 60,475.00 ASA#5: ASA #1: $9,860.00 ASA #6: ASA #2: $9,070.00 Reimbursables: ASA #3: Reimbursables: ASA #4: REVISED CONTRACT AMOUNT $79,405.00 ■: The above described services and associated fees are outside the original scope of the agreement. The terms and conditions in the original agreement are not changed by this ASA unless specifically refered to in this ASA and signed by both parties. Accept ASA by signing below COMPANY City of Diamond Bar DATE: 3/10/2015 CONTACT Christian Malplca PHONE: (909) 839-7042 TITLE Associate Engineer SIGNATURE FAX: — If ASA is rejected indicate reasons below: Purusant to the terms of master services agreement, no work under this ASA will be performed until this form is signed and returned or client expressly waives this requirement. Tait assumes no responsibility for any damages resulting from non-performance of work if this form is not executed. ASA#2 - Hipass GeotechAs CITY COUNCIL Agenda # 6.8 Meeting Date : April 7 2015 REVISED REPORT AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Mandor TITLE: APPROVE CONTRACT (AMEN MENT NO. 1 FOR STORMWATER COMPLIANCE AND ENVIRONMENTAL ENGINEERING SERVICES WITH JOHN L. HUNTER & ASSOCIATES FOR A TOTAL AMOUNT OF $67,133 PLUS A CONTINGENCY AMOUNT OF $6,000 FOR A TOTAL AUTHORIZATION OF $73,133. RECOMMENDATION: Approve. FINANCIAL IMPACT: John L. Hunter and Associates has been providing stormwater compliance services for the City since March 2007. Over the years the stormwater permit regulations have evolved requiring specific as -needed stormwater compliance services from John L. Hunter and Associates. Since the original contract approval in 2007 a total of $59,514 has been expended to date on services provided by John L. Hunter and Associates. Amendment No. 1 in the amount of $67,133 plus a contingency of $5,000 will extend services through December 31, 2015. The FY 14-15 Public Works Operating Budget has an amount of $185,500 for Environmental Engineering Services. For review and implementation of stormwater regulations on development related projects, funding will be provided through developer fees and deposits paid by the applicant prior to the plan/report review stage. Under the Ordinance 07 (2014) adopted by Council, this Amendment No. 1 will require Council approval and will increase John L. Hunter and Associates contract to $142,647. A new scope or work and contract will be requested in early 2015 to implement additional regulations of the stormwater permit once the City's Watershed Management Program (WIMP) is approved by the Board. BACKGROUND/DISCUSSION: `. On November 8, 2012 the California Regional Water Quality Control Board ("Board"), Los Angeles adopted the Municipal Separate Storm Sewer System ("MS4") Permit (Order No. R4-2012-0175), hereinafter referred to as "Permit". The City is a permittee under the Permit issued by the Board, which establishes requirements for MS4 discharges within the coastal watersheds of Los Angeles County, except discharges originating from the City of Long Beach. The new permit is different from the previous three (3) permits which simply required street sweeping, catch basin cleaning, and many other practices to the "maximum extent practicable." The new permit gave cities two options to be in compliance which included a) Comply with strict numerical limits on pollutants immediately or b) Develop a Watershed Management Program (WMP) that would phase in the numeric limits over time. The WMP is an extensive program that looks at the type of pollutants and the land uses within a city where pollutants are generated; then using a computer modeling, predicts the size needed and best locations for new treatment facilities to reduce or eliminate the pollutants to be in conformance with the numerical limits. John L. Hunter and Associates has worked closely with Diamond Bar over the last eight years to ensure the City remains in compliance with stormwater regulations. John L. Hunter and Associates maintains excellent rapport with regulatory agencies, and is an expert in many areas of stormwater regulations. Staff finds the broad experience and successful implementation of stomrwater programs by John L. Hunter and Associates invaluable. In October 2013 Council approved a Memorandum of Understanding (MOU) with the Los Angeles Gateway Water Management Authority to develop a WMP in cooperation with thirteen other local jurisdictions (Permittees). Together, the Permittees created a technical working group under the name of the Lower San Gabriel River Watershed Group (LSGRWG) and has selected John L. Hunter & Associates to develop the WMP and Coordinated Integrated Monitoring Program (CIMP) as required by the 2012 Permit. In addition to the requirements being met by the development of the WMP with LSGRWG, the City is also responsible for ongoing stormwater compliance activities which include the submittal of an annual report to the State Board, Industrial/Commercial inspections, Training, Construction Site Inspections, Implementation of Low Impact Development (LID) requirements on land development projects, Public Outreach, and Participation at regional meetings that affect the City, to name a few. With all the stormwater mandates placed upon the cities, Diamond Bar has been able to remain in compliance with John L. Hunter & Associates services. Having a consultant who is familiar with the City and the type of compliance activities that have been implemented as well as being responsible for the WMP and CIMP preparation with the LSGRWG will ensure that Diamond Bar remains in compliance with all stormwater regulations imposed. PREPARED BY: DATE PREPARED: Kimberly M. Young, Senior Civil Engineer April 7, 2015 REVIEWED BY: David -G' I -L Director of Public Works Attachments: Exhibit A Amendment No. 1 2 CITY COUNCIL Agenda # 6 .8 Meeting Date. April 7 2015 AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Ma a r TITLE: APPROVE CONTRACT AM NDMENT NO. 1 FOR STORMWATER COMPLIANCE AND ENVIRON ENTAL ENGINEERING SERVICES WITH JOHN L. HUNTER & ASSOCIATES FOR A TOTAL AMOUNT OF $67,133 PLUS A CONTINGENCY AMOUNT OF $6,000. RECOMMENDATION: Approve. FINANCIAL IMPACT: The FY 14-15 Public Works Operating Budget has an amount of $185,500 for Environmental Engineering Services. For review and implementation of stormwater regulations on development related projects, funding will be provided through developer fees and deposits paid by the applicant prior to the plan/report review stage. BACKGROUND/DISCUSSION: John L. Hunter and Associates has been providing stormwater compliance services for the City since March 2007. On November 8, 2012 the California Regional Water Quality Control Board ("Board"), Los Angeles adopted the Municipal Separate Storm Sewer System ("MS4") Permit (Order No. R4-2012-0175), hereinafter referred to as "Permit". The City is a permittee under the Permit issued by the Board, which establishes requirements for MS4 discharges within the coastal watersheds of Los Angeles County, except discharges originating from the City of Long Beach. The new permit is different from the previous three (3) permits which simply required street sweeping, catch basin cleaning, and many other practices to the "maximum extent practicable." The new permit gave cities two options to be in compliance which included a) Comply with strict numerical limits on pollutants immediately or b) Develop a Watershed Management Program (WMP) that would phase in the numeric limits over time. The WMP is an extensive program that looks at the type of pollutants and the land uses within a city where pollutants are generated; then using a computer modeling, predicts the size needed and best locations for new treatment facilities to reduce or eliminate the pollutants to be in conformance with the numerical limits. John L. Hunter and Associates has worked closely with Diamond Bar over the last eight years to ensure the City remains in compliance with stormwater regulations. John L. Hunter and Associates maintains excellent rapport with regulatory agencies, and is an expert in many areas of stormwater regulations. Staff finds the broad experience and successful implementation of stomrwater programs by John L. Hunter and Associates invaluable. In October 2013 Council approved a Memorandum of Understanding (MOU) with the Los Angeles Gateway Water Management Authority to develop a WMP in cooperation with thirteen other local jurisdictions (Permittees). Together, the Permittees created a technical working group under the name of the Lower San Gabriel River Watershed Group (LSGRWG) and has selected John L. Hunter & Associates to develop the WMP and Coordinated Integrated Monitoring Program (GIMP) as required by the 2012 Permit. In addition to the requirements being met by the development of the WMP with LSGRWG, the City is also responsible for ongoing stormwater compliance activities which include the submittal of an annual report to the State Board, Industrial/Commercial inspections, Training, Construction Site Inspections, Implementation of Low Impact Development (LID) requirements on land development projects, Public Outreach, and Participation at regional meetings that affect the City, to name a few. With all the stormwater mandates placed upon the cities, Diamond Bar has been able to remain in compliance with John L. Hunter & Associates services. Having a consultant who is familiar with the City and the type of compliance activities that have been implemented as well as being responsible for the WMP and CIMP preparation with the LSGRWG will ensure that Diamond Bar remains in compliance with all stormwater regulations imposed. PREPARED BY: DATE PREPARED: Kimberly M. Young, Senior Civil Engineer March 20, 2015 REVIEWED -13Y: I David G. L u, Director of Public Works Attachments: Exhibit A Amendment No. 1 2 AMENDMENT NO. 1 TO CONSULTANT SERVICES AGREEMENT This Amendment No. 1 to Consultant Services Agreement ("Amendment No. 1") is made and entered into as of April 7, 2015 by and between the City of Diamond Bar, a municipal corporation ( "City"), and John L. Hunter & Associates (herein referred to as the "Consultant") with reference to the following: A. The City and the Consultant entered into that certain Consultant Services Agreement dated as of March 21, 2007, which is incorporated herein by this reference (the "Original Agreement"); and B. The City and the Consultant desire to amend the Original Agreement to modify, amend and supplement certain portions of the Original Agreement. NOW, THEREFORE, the parties hereby agree as follows: 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement. 2. Revised Scope. The nature and scope of the specific services to be performed by Consultant are as described in Exhibit A, the Consultant's proposal, dated February 10, 2015; 3. Compensation. City agrees to compensate Consultant for each service which Consultant performs to the satisfaction of City in compliance with the schedule set forth or as referenced in Exhibit A. 4. Integration. This Amendment No. 1 and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein, and supersede all negotiations with respect hereto. This Amendment No. 1 amends, as set forth herein, the Original Agreement and except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this Amendment No. 1 and the terms and provisions of the Original Agreement, the terms and provisions of this Amendment No. 1 shall control. 973895.1 IN WITNESS hereof, the parties enter into this Amendment No. 1 on the year and day first above written. "CONSULTANT" John L. Hunter and Associates, Inc. Rv- Printed Name: Title: "CITY" CITY OF DIAMOND BAR Bv: Steve Tye, Mayor ATTEST: Tommye A. Cribbins, City Clerk APPROVED AS TO FORM: David DeBerry, City Attorney (56z) 801-7880 16131 Orangeth0rpe Ave, Suite 300, Buena Park, CA go6zo I z 3 4 E i Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar CompanyQualifications.............................................................................................................................1 1.1 Stormwater Management and Related Services....................................................................................1 r.z Watershed Management.......................................................................................................................2 Approach to Scope of Services...................................................................................................................3 Scopeof Service Checklist..........................................................................................................................3 EstimatedCosts...........................................................................................................................................6 4.1 Standard Rate Schedule..........................................................................................................................7 Qualifications of Personnel, Experience and References..........................................................................8 5.1 Qualifications of Personnel....................................................................................................................8 5.z Related Experience................................................................................................................................ 10 5.3 References.............................................................................................................................................. 11 CompanyInformation.............................................................................................................................. 11 Appendix...................................................................................................................................................13 John L. Hunter & Associates Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar Company Qualifications John L. Hunter & Associates (JLHA) is an environmental consulting firm that provides a broad scope of services to municipal clients. Formed in 1985, JLHA's mission is to provide its clients with the expertise necessary to comply with mandated environmental programs These programs include, among others, stormwater pollution prevention, watershed management, water conservation, and used oil and beverage container recycling.. JLHA takes an integrated, holistic approach to administering programs for our municipal clients. Client services include program management, planning, public outreach, inspections, investigations, enforcement, monitoring, reporting and much more. JLHA provides these services under one roof—which not only reduces the need for outsourcing—but allows us to provide better feedback, design, development, implementation, analysis and monitoring of programs for our clients. Our staff of scientists, engineers, and outreach specialists has the training, experience, and expertise to provide effective, cost-efficient environmental compliance solutions. Staff credentials include certified professionals in engineering, stormwater quality, BMP (Best Management Practice) inspection, erosion control, SWPPP development and implementation, and environmental assessment with graduate and post graduate degrees in environmental engineering, science and health, as well as biology, chemistry, physics, and public relations. 1.1 Stormwater Management and Related Services JLHA has considerable experience assisting municipalities with NPDES MS4 (municipal stormwater) Permit compliance programs. Currently JLHA is implementing stormwater program elements for 30 cities in a tri -county area. For 22 cities services include field activities such as site inspections and for 20 cities services include program management. Program management services consist of developing jurisdictional stormwater management program plans, advising and reporting on TMDL and other MS4 Permit requirements, watershed management and client representation with Regional Board members and staff. For several clients JLHA has provided these services continuously for many years (e.g. Rancho Palos Verdes -1994, Signal Hill -1985, South Gate -1991). Recent stormwater experiences relevant to this proposal include: John L. Hunter & Associates Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar • Successfully representing NPDES MS4 clients in multiple program audits conducted by Regional Board staff. • Holding MS4 Permit -related stakeholder meetings for several groups, including the Los Angeles River Watershed Committee, the Lower Los Angeles River Watershed Committee, the Lower San Gabriel River Watershed Committee, and the Palos Verdes Peninsula EWMP Agencies. • Educating our clients' elected officials in NPDES MS4 Permit compliance at regular council meetings and special study sessions. JLHA has conducted dozens of educational presentations for topics including, but not limited to: compliance with the 2012 NPDES MS4 Permit; adoption of LID ordinances and Green Streets Policies; development of Watershed Management Programs; TMDL compliance; and financial strategies to achieve Permit compliance. • Developing and implementing measures to comply with the new provisions of the 2012 LA County NPDES MS4 Permit t.z Watershed Management JLHA serves as the lead consultant for three watershed groups: the Lower Los Angeles River Watershed Group, the Lower San Gabriel River Watershed Group and the Peninsula Cities Watershed Group. Consequently, JLHA has successfully submitted two WMPs and an EWMP Workplan to the Regional Board. JLHA is also serving as the lead consultant for the Long Beach Master WMP Plan, and participates in and provides services to the Los Cerritos Channel Watershed Group. The groups formed in 2013 to develop Watershed Management Programs (WMPs), as allowed by the Los Angeles and Long Beach NPDES MS4 Permits. In addition to recent experience with WMP development, JLHA has been involved with watershed -based, multi jurisdictional NPDES MS4 programs for many years. JLHA served as the prime consultant in the development of the Los Angeles Reach 1 Metals TMDL Implementation Plan, which involved the participation of nine agencies. JLHA was also integral in the development of the 2011 Machado Lake Nutrients TMDL Implementation Plan. For the last ten years, JLHA has implemented studies and prepared compliance reports to the Regional Board for several cities under the Los Angeles River Trash TMDL. JLHA also John L. Hunter & Associates Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar prepared and has implemented elements of the Monitoring and Reporting Program for the Santa Monica Bay Bacteria TMDL for Jurisdiction 7. In total JLHA provides individual and multi jurisdictional stormwater management services in the watersheds of the Los Angeles River, San Gabriel River, Dominguez Channel/LA Harbor, Santa Monica Bay, Santa Ana River, and Anaheim Bay/Huntington Harbor. z Approach to Scope of Services John L. Hunter & Associates (JLHA) has aided municipalities in compliance with NPDES MS4 Permit provisions since the first issuance of these permits in the 1990s. Through these years of experience, JLHA has developed a distinct, yet multifaceted approach. This approach has proven successful to date — of the multiple Regional Board MS4 Program audits that JLHA has participated in, none resulted in Permit violations. The key to this success is attributed to: 1) Our proactive approach when developing a compliance strategy. In the past JLHA has assisted cities with compliance in response to fines issued by the Regional Board due to significant MS4 NPDES program deficiencies. JLHA knows that a consultant alone cannot remedy such deficiencies, and as such we play a proactive role in involving City staff in the compliance process. Dynamic communication and collaboration with our clients achieves the best results: In one instance where this approach was applied, a City fined $100,000 prior to JLHA involvement later received two extensive program audits with no violations noted. 2) Our timely availability to our clients for emergencies, questions, and concerns. JLHA understands that MS4 Permit provisions often require tight deadlines. JLHA has several qualified staff members available to 1) answer any questions about NPDES MS4 compliance at any given time during business hours and 2) provide necessary services with short notice. 3) Our comprehensive knowledge of the NPDES MS4 Permit. The NPDES MS4 Permit consists of several hundred pages of regulation, which is far beyond the scope of any one city staff personnel to handle on his or her own. Since this is JLHA's particular expertise, all JLHA personnel are equipped to understand and assist in implementing compliance strategy for the NPDES MS4 Permit. 3 Scope of Service Checklist JLHA welcomes the opportunity to continue providing professional NPDES MS4 services to the City of Diamond Bar. Table 1 lists specific tasks under the 2012 LA County MS4 NPDES Permit that City may wish to contract to JLHA or manage in-house for the 2015-2016 fiscal year. JLHA's previous work has included many of the tasks listed in the table, such as industrial/commercial inspections, plan checking, and staff trainings. Additional tasks related to NPDES MS4 Permit compliance may be added to this preliminary scope of services upon the City's request. John L. Hunter & Associates Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar Table 1: Summary of Tasks Task 1 — Program Assistance Assist with preparation of the Annual Report for submittal to the Regional Water Board by December 15th each year. Provide regular updates on NPDES MS4, watershed, and TMDL meetings that affect the City. Represent the City at NPDES MS4, watershed, and TMDL meetings that affect the City. Tasl< 2. —illicit Connections/Illicit Discharges Detection and Elimination Program Assist with detection and elimination of potential illicit connections and illicit discharges throughout the City. Task 3 — Public Agency Activities Program Public Agency Facility and Activity Management Prepare an inventory of City facilities within our city boundaries that are a potential source of stormwater pollution. Incorporate facility information into a GIS layer. JLHA recommends the Citypurchase MS4 Front or a similar off-the- shelf MS4 Permit GIS database to assist in this task. Provide minimum fields of information for each facility. Provide inventory updates as required Inventory of Existing Development for Retrofitting Opportunities Prepare an inventory of retrofitting opportunities that meet the requirements of Part VI.9.d Retrofit opportunities shall be identified within the public right-of-way or in coordination with a TMDL implementation plan Screen existing areas of development to identify candidate areas for retrofitting using watershed models or other screening level tools Rank the areas of existing development to prioritize retrofitting candidates Evaluate results; provide list of highly feasible projects, offsite mitigation for new development and redevelopment, and where feasible, the existing development retrofitting program may be coordinated with other flood control or infrastructure improvement projects Identify any private/public partnerships Public Agency Facility and Activity Management Evaluate facilities to determine if separate coverage under the Industrial General Permit is required. Assess the impacts of flood management projects on water quality of receiving water bodies. Evaluate existing structural flood control facilities to determine if retrofitting the facility to provide additional pollutant removal from storm water is feasible Prepare a list of BMPs for each Public Agency Facility. To satisfy Section VI.D.9.e of the MS4 Permit, JLHA is developing an activity -based BMP manual for multiple clients. This manual will also be developed for the City. The City will benefit from this cost -shore approach. Vehicle and Equipment Washing Conduct inventory of fleet washing areas to ensure proper BMPs are in place to either contain, or haul off for disposal, or wash area is equipped with a clarifier or an alternative pre-treatment device and plumb to sanitary sewer in accordance with applicable wastewater regulations. Landscape, Park and Recreational Facilities Management Conduct inspection of City facilities to ensure activity specific BMPs listed in the Public Agency Facility and Activities BMPs are Implemented and maintained John L. Hunter & Associates Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar Create and implement an Integrated Pest Management program which includes: Policies, procedures, and/or ordinance requiring minimal pesticide usage and encourages IPM techniques for public agency facilities and activities. To satisfy Section VI.D.9.g of the MS4 Permit, JLHA is developing on IPM policy for multiple clients. This manual will also be developed for the City. The City will benefit from this cost -share approach. Prepare annual update of the pesticides inventory used by all departments Quantify pesticide use by staff and hired contractors Develop protocols for routine and non -routine application of pesticides and fertilizers Develop policy for the purchase, application, and storage of pesticides and fertilizers Municipal Employee and Contractor Training Provide annual training to City employees in targeted positions, whose interactions, jobs, and activities affect stormwater quality on the requirements of the overall stormwater management program. Incorporated into the annual training should be information on integrated pest management and illicit connection and illicit discharges. Training will include new requirements that will be in place once the City's WMP is approved. Design form that contractors may self -certify, providing that they have received all applicable training required in the permit Spill Response Plan Develop a spill response plan for sewage and other spills that may discharge into the MS4. Task 4— Industrial/Commercial Facility Inspections Conduct industrial/commercial facility inspections following Permit frequencies. JLHA recommends the Citypurchase MS4 Front or a similar off-the-shelf MS4 Permit GIS database to assist in this task. Follow-up activities Update inspection database with inspection results Develop a Business Assistance Program following permit requirements Task 5— Public Outreach Provide assistance with implementing the PIPP requirements listed in the permit Technical assistance in developing watershed based public outreach materials Provide assistance with culturally effective outreach materials. JLHA has in-house staff to translate materials in Spanish and Mandarin. Hold a stormwater education booth at one or more events within the reporting ear Task 6— Planning and Land Development Review Low Impact Development (LID) plans* Assist the City with implementation of the LID ordinance Conduct BMP verification inspections Conduct BMP maintenance inspection Develop a BMP tracking database. JLHA recommends the Citypurchase MS4 Front or a similar off-the-shelf MS4 Permit GIS database to assist in this task. Task 7 — Construction Inspect Construction General Permit facilities following required frequencies (i.e., monthly) Follow-up activities Develop an ESCP checklist and standard operating procedures *LID reviews are not applicable to this fee proposal for professional services. This service is currently performed and paid by land developers (not associated with JLHA) for the City of Diamond Bar. John L. Hunter & Associates Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar 4 Estimated Casts 4.1 Standard Rate Schedule Principal/Staff Engineer $165/hr Environmental Compliance Manager/Project Engineer $135/hr Environmental Compliance Specialist and Public Outreach Manager $95/hr Laborer (OSHA 40hr certified)/ Public Outreach Assistant $65/hr State Certified Laboratory Analysis Cost + 5% Legal Consultation, Court Appearances/Document review, etc. $250/hr Inspection — Industrial/commercial facilities $125/inspection Inspection — State Industrial General Permit Facilities $250/inspection Inspection —Combined CBR/FOG $150/inspection Inspection — FOG only $115/inspection Subcontracted equipment Cost + 5% Prices effective as of January 1, 2015 JLHA does not add charges for overhead items such as administrative copying or mileage in and around the city. 4.7 Estimated Costs The NPDES program is an evolving process, and due to the uncertainties inherent with a program of this nature, such as the number of plans that will be submitted for review, and the number of illicit discharges that will occur, this program will be on a time and materials basis, with the cost not to exceed the amount in Table 2 without prior City authorization. For tasks related to GIS services, JLHA recommends the City purchase an off-the-shelf NPDES MS4 Permit management database such as MS4 Front. JLHA would then customize all required forms to fit the LA NPDES MS4 Permit. The cost estimates for this fee proposal are listed in Table 2 on the following page. John L. Hunter & Associates Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar Table 2: Estimated Costs for Professional Services Performed Task 1 — Program Assistance $10,085 Specialist 40 $95 $135 $165 Compliance Manager 27 Staff Engineer 16 Task 2 — Illicit Connection/Discharges Program $488 Specialist 3 $95 $135 Compliance Manager 1.5 Task 3 — Public Agency Activities Program $14,650 Specialist 80 $95 $135 $165 Compliance Manager 40 Staff Engineer 10 Task 4— Industrial/Commercial Facility Inspections $26,100 Specialist 52 $95 $135 $125/visit Compliance Manager 16 Industrial/Commercial Facilities 152 Task 5 — Public Outreach $2,850 Public Outreach Manager 30 $95 Task 6— Planning and Land Development $1,950 Specialist 12 $95 $135 Compliance Manager 6 Task 7 — Construction $11,010 Specialist I 9 $95 $135 Compliance Manager 14 em e John L. Hunter & Associates Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar S Qualifications sof Personnel, Experience and References 5.1 Organization Chart John L. Hunter PE Principal Rosalinda Tandoc PE Staff Engineer Watershed Control Program Measures Administration x� x--- � x Structural Measures Nonstructural Outreach John L. Hunter PE Measures Principal lilba n Brickey C. cM Cullough i ion Brickey MS, CPSWQ MS, CPSWQ Anne Chang, MA MS, CPSWQ Outreach Manager Progra, m Manager Prag a� m Manager Project Man ger \,Jccullough Mikki Klee CPESC S. Robinson MS MS, CPSWQ Project Engineer Watershed Specialist Project Manager -- ose Rodriguez Project MS CESSWI roj\Engineer Field Supervisor 5.2 Qualifications of Personnel Respective resumes of key personnel are included in Appendix A. CAM[ RON Ib cCui LOUC,H. CPSWQ, QSD Mr. McCullough has over eleven years of experience in environmental management, specializing in stormwater and watershed management, fats, oils and grease control, and Phase 1/11 site assessment. His experiences include developing environmental management plans, programs and assessments, managing the implementation of these programs, training staff, and representing clients in interactions with regulatory agencies. Mr. McCullough developed elements of the Watershed Management Programs for the Lower Los Angeles River, Lower San Gabriel River and Los Cerritos Channel Watershed Management Committees. John L. Hunter & Associates Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar Tasks included preparation of the historical and hydrological setting, evaluation of existing pollution control measures, and development of targeted control measures to address water quality priorities. He is also assisting in the development of an Enhanced Watershed Management Program for the Peninsula Watershed Management Group. Tasks include evaluation of existing pollution control measures and development of targeted control measures to address water quality priorities. ior,p LHUN=,<, P Mr. Hunter has 30 years of experience in municipal environmental programs and currently oversees: (1) a 30 city NPDES program encompassing three counties that covers programs such as: watershed management, TMDL implementation, site inspections, stormwater management plan reviews, construction inspections, public agency activities, illegal discharge investigations and public outreach; (2) a 9 city FOG program encompassing permitting, inspections and enforcement, (3) a 7 city Used Oil Recycling program and (4) a 3 City Beverage Container Recycling program. He has also administered "right -to -know" hazardous materials programs for local fire departments and has substantial experience in underground tanks removals and mitigation of subsurface soils contamination. Jri.uar Rs+O<ev, MS, C'PSWQ, Q>C} Ms. Brickey has nine years of experience in municipal environmental programs, specializing in stormwater and watershed management. She is a Certified Professional in Stormwater Quality and a Qualified SWPPP Developer and Practitioner. Her experiences include developing environmental management plans and programs, managing and coordinating the implementation of these programs with municipal staff, educating and training municipal staff, representing clients in interactions with regulatory agencies, and grant application and management. She specializes in the development and management of stormwater structural control/Low Impact Development (LID) programs. Ms. Brickey developed elements of the Watershed Management Programs for the Lower Los Angeles River and Lower San Gabriel River Watershed Groups. Tasks included preparation of the historical and hydrological setting, evaluation of existing pollution control measures, development of targeted control measures to address water quality priorities, and development of a compliance schedule. She is also assisting in the development of an Enhanced Watershed Management Program for the Peninsula Watershed Management Group and a Master Watershed Management Program for the City of Long Beach. J'Orr RODe GUez, CESSW, QSP Mr. Rodriguez has worked with John L. Hunter & Associates in the environmental compliance fields of NPDES, FOG and Industrial Waste for over seven years. His relevant experiences and tasks include implementing NPDES municipal permit provisions such as industrial/commercial inspections, illicit discharge detection and elimination, construction inspections, public education, public agency inspections, TMDL compliance, municipal staff training and completing annual reports. In total, Mr. Rodriguez has conducted several thousand inspections for agencies such as Compton, South Gate, Hawthorne, South EI Monte, Arcadia and the Orange County Sanitation District. John L. Hunter & Associates Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar Mu<KI KIA L, El T C PESC, QSLS/P -- STAH FN, -,,NEER Ms. Klee is a Staff Engineer with over four years of experience in engineering related projects and over three years of experience in the environmental compliance fields. She is a Certified Engineer in Training. Her relevant experiences include implementing all aspects of NPDES Permit provisions for municipalities. She specializes in the plan development element of these programs, such as environmental plan preparation and review. Ms. Klee holds a B.S. in Civil Engineering with an Environmental Option from California State Polytechnic University, Pomona. ANNE (,HANG, MA Ms. Chang has more than 13 years of experience in the public outreach aspect of the municipal environmental programs. Programs under her purview include: NPDES MS4, Used Oil Recycling and Beverage Container Recycling. She has helped local municipalities in planning, developing, facilitating and implementing activities and campaigns based on the guidelines of these programs. With various campaigns and outreach materials, she has not only successfully raised the awareness, but also gradually constructed pollution prevention practices and behavior among residents, businesses and school children. Ms. Chang is bilingual in English and Mandarin (Chinese). 5.3 Related Experience The following table lists contracts awarded to JLHA that are similar in nature to the scope of services outlined in this proposal. JLHA presently holds and manages all contracts listed in Table 3. Table 3: Summary of Similar Contracts Awarded to JLHA John L. Hunter & Associates J v o N v a G 0 Q E v Client and Programs) lD m > a- d Cr Arcadia(St(armwater) 1995 20 * x x x x * - -- Artesia (Stormwater) " 2014 1 x x a x -- x x -- BigeearLake(Stormwater) 2004 11 x -- -- -- x x x x x -- BuenaPark(Stormwater) 2010 5 -- -- * -- - -- -- -- -- -- Covina(Stormwater) 2004 7 -- -- x — -- -- -- -- -- -- DlamondBar(Storrnwater) 2007 8 x -- x x x -- -- x x -- Downey(Stormwater) x 2011 4 x x a x x x -- x x -- GWMA(Regional Watershed) 1 x 2012 3 -- * -- -- -- -- -- -- -- -- Hawaiian Gardens (Stormwater) ( x 2012 3 x x a x x x x x x -- Hawthorne (Stormwater) 2000 15 a x x x < x x x x -- La Habra (Stormwater) 2011 4 __ _- x __ __ __ __ __ __ __ Long Beach(Reaional Watershed) * 2014 1 -- x -- -- -- -- -- -- -- -- LLAR Watershed Group (Regional Watershed) x 2013 ? -- x -- -- -- -- -- -- -- -- LSGRWatershedGroup(Regional Watershed) X 2012 3 -- - -- -- -- -- -- -- -- -- Lynwood (Storrr�water, Conservation) ( x 2014 1 x x x x x John L. Hunter & Associates Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar Manhattan Beach (Stormwater) 2010 5 Vanessa Hevener 11800 Goldring Rd. (626)305-5327 Environmental Services Officer Monterey Park (Stormwater; Conservation) I 2005 10 z . x x x Norwalk (Stormwater) x 2010 5 x x x x x Paramount( Stormwater) 2014 1 x x x x > Peninsula cWMP Group( Regional Watershed) 2013 2 -- x -- -- -- Placentia(Stormwater) 2013 2 x -- -- -- x Rancho Palos Verdes (Stormwater) 1994 21 Rolling Hills (Stormwater) ( 2009 6 -- -- -- -- -- Seal Beach (Stormwater, Conservation) 2005 10 x * x x Signal Hill (Siorrmwffier) x 1985 30 x x x x x South Gate (Stormwater, Conservation) x 1991 24 x x x x x South Pasadena(Stormwatek 2005 10 x Stanton (Stormwater) 2007 8 x x x x - Temple City (Stornwater, Conservation) 2003 12 x x x x x Villa Park (Stormwater) 2013 2 x x x West Hollywood (Stormwater) ( 1995 20 x Whittier(Stormwater) x 2014 1 x x 5,4. References The following table is a list of references that are familiar with the service provided in the previous table. Table 4: References Arcadia (NPDES, IVV) Downey (NPDES) Signal Hill (NPDES, IVB Contact/Title Address Contact Information Vanessa Hevener 11800 Goldring Rd. (626)305-5327 Environmental Services Officer Arcadia, CA 91006 (626) 359-7028 (fax) Public Works Services Department Vhevener@ci.arcadia.ca.us Dan Mueller 11111 Brookshire Ave (562) 622-3578 Deputy Director of Public Works Downey, CA 90241 dmueller@downey.org Mohammad Mostahkami Director of Public Works Steve Myrter 2175 Cherry Avenue (562) 989-7356 Director of Public works Signal Hill, CA 90775 smyrter@cityofsignalhill.or x x x z T X x x x 5,4. References The following table is a list of references that are familiar with the service provided in the previous table. Table 4: References Arcadia (NPDES, IVV) Downey (NPDES) Signal Hill (NPDES, IVB Contact/Title Address Contact Information Vanessa Hevener 11800 Goldring Rd. (626)305-5327 Environmental Services Officer Arcadia, CA 91006 (626) 359-7028 (fax) Public Works Services Department Vhevener@ci.arcadia.ca.us Dan Mueller 11111 Brookshire Ave (562) 622-3578 Deputy Director of Public Works Downey, CA 90241 dmueller@downey.org Mohammad Mostahkami Director of Public Works Steve Myrter 2175 Cherry Avenue (562) 989-7356 Director of Public works Signal Hill, CA 90775 smyrter@cityofsignalhill.or ALIFORNIA CORPORATION John L. Hunter & Associates, Inc. is a California registered corporation established in 1985. John Hunter is the Owner and President who oversees the firm. ADDRESS John L. Hunter President John L. Hunter & Associates, Inc. 6131 Orangethorpe Avenue, Suite 300 Buena Park, California 90620 (562) 802-7880 Ext 25. NSu'RANCE John L. Hunter & Associates Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar JLHA continues to maintain the same level of insurance as in the previous agreement with the City. These levels are: • Automobile Liability, including owned, non -owned, and hired vehicles, with $1,000,000 per occurrence. • General Liability including coverage for premises, products and completed operations, independent contractors/vendors, personal injury and contractual obligations with combined single limits of coverage of at least $2,000,000 per occurrence. • Errors and Omissions coverage with limits of $2,000,000 per occurrence. • Workers' Compensation insurance as required by the Labor Code of the State of California. JLHA has an additional $1,000,000 umbrella policy in addition to the above limits (see certificate of liability insurance on the following page). John L. Hunter & Associates 7 � Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar ;'i PEND'X A -- R-1-Sumic John L. Hunter & Associates Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar Education M.S., Applied Mathematics California State University Long Beach B.S., Physics California State University Long Beach Certifications Certified Professional In Stormwater Quality Envirocert (#0842) Qualified SWPPP Developer/Practitioner CASQA (#22706) Affiliations Phi Beta Kappa Society Society for Industrial and Applied Math Cameron McCullough, CPSWQ, QSD Environmental Compliance Manager Mr. McCullough has over ten years of experience in environmental management, specializing in stormwater and watershed management, fats, oils and grease control, and Phase 1/II site assessment. His experiences include developing environmental management plans, programs and assessments, managing the implementation of these programs, training staff, and representing clients in interactions with regulatory agencies. Project Experience Watershed Management: Mr. McCullough developed elements of the Watershed Management Programs for the Lower Los Angeles River, Lower San Gabriel River and Los Cerritos Channel Watershed Management Committees. Tasks included preparation of the historical and hydrological setting, evaluation of existing pollution control measures, and development of targeted control measures to address water quality priorities. He is also assisting in the development of an Enhanced Watershed Management Program for the Peninsula Watershed Management Group. Tasks include evaluation of existing pollution control measures and development of targeted control measures to address water quality priorities. NPDES/Stormwater Program Management: • Manages NPDES Programs for municipal clients in LA, Orange and San Bernardino Counties. Clients include Downey, Norwalk, Signal Hill, Stanton, and Seal Beach. Program elements include industrial/commercial facility inspections, illicit discharge detection and elimination, construction activity, municipal activities and non-Stormwater discharge prohibition. • Develops jurisdictional Stormwater Management Programs (SWMPs) for individual municipalities. • Develops Stormwater Pollution Prevention Plans (SWPPPs) for municipal facilities. Clients include Downey, Norwalk, Lynwood and Pico Rivera. • Represents cities in State compliance inspections/audits (NPDES and FOG). Performs self -audits. Five audits total for the cities of Seal Beach (2006, 2010), Stanton (2010, 2014) and Big Bear Lake (2007). • Manages Trash TMDL DGR studies. • Prepares NPDES annual reports. • Prepares and presents NPDES training to municipal staff. • Represents municipal clients at inter -jurisdictional NPDES Program meetings. • Design electronic database management systems to meet State reporting requirements. Field Experience: • Has inspected and investigated thousands of sites for NPDES/FOG/Industrial Waste compliance. • Monitors pollutant loading for municipalities under Trash TMDLs. • Collects and analyze Stormwater, wastewater and soil samples. Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar John L. Hunter, PE Principal Areas of Expertise NPDES Permits: Implementing and managing compliance programs. TMDLs: Preparing and managing Implementation/Monitoring Plans. FOG Control: Implementing and managing compliance programs. Overview Mr. Hunter has 30 years of experience in municipal environmental programs and currently oversees: (1) a 17 city NPDES program encompassing three counties that covers programs such as: watershed management, TMDL implementation, site inspections, stormwater management plan reviews, construction inspections, public agency activities, illegal discharge investigations and public outreach; (2) a 9 city FOG program encompassing permitting, inspections and enforcement, (3) a 6 city Used Oil Recycling program and (4) a 3 city Beverage Container Recycling program. He has also administered "right -to -know" hazardous materials programs for local fire departments and has substantial experience in underground tanks removals and mitigation of subsurface soils contamination. Education Bachelor of Science - Chemical Engineering California State University, Long Beach Bachelor of Science - Biological Sciences University of California, Irvine Certifications and Licenses CA Professional Chemical Engineer CA Registered Environmental Assessor CA Hazardous Substance Removal CA General Engineering Contractor License CH 4724 REA-0900 A3382 A-582340 NPDES Experience and Skills TMDLs: • Los Angeles River Trash TMDL — Obtained $0.78 million in grant funding for the Hamilton Bowl BMP Study. The intent of the study was to evaluate different end -of -pipe trash capture systems for City of Signal Hill and Long Beach. • Los Angeles River Metals TMDL — $200,000 contract with Gateway Cities Council of Governments for preparation of Reach 1 Implementation Plan on behalf of 9 local agencies. • Dominguez Channel Bacteria Study — Conducted regional Board directed bacteria study to investigate elevated bacteria levels found in the Dominguez Channel by the Regional Board (City of Hawthorne). • Regional Board Audit of MS4 municipal permit program — City of Big Bear Lake NPDES: • Oversees a 20 city NPDES program encompassing site inspections, stormwater management plan reviews, construction inspections, public agency activities, illegal discharge investigations and public outreach. • Has chaired the following committees: • Los Angeles River Watershed Management Committee (Current Chair) • Santa Monica Bay Bacterial TMDL Subcommittee — J 7 (Current Chair) • Dominguez Channel Bacterial TMDL Subcommittee • Also participates in • LA Permit Group/Executive Advisory Committee • Trash/metals TMDL Subcommittees Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar )illian Brickey, MSES, CPSWQ, QSD/QSP Environmental Compliance Manager Areas of Expertise NPDES Permits: Implementing and managing compliance programs. Plan Reviews: Reviewing Standard Urban Stormwater Mitigation Plans and Water Quality Management Plans with emphasis in Low impact Development (LID) compliance. Overview Ms. Brickey has worked with John L. Hunter & Associates in the environmental compliance field of NPDES, being versed in all departments at 1LHA, for seven years. She is the Lead NPDES Plan Reviewer for Seal Beach, Stanton, Buena Park, La Habra, and Signal Hill and the Stormwater Program Manager for Seal Beach. Her relevant experiences and tasks include implementing and managing NPDES municipal permit provisions such as watershed management, new development, construction, TMDL compliance, municipal staff training and representing clients in program audits. Education • M.S. in Environmental Science • B.S. in Zoology, Minor in Chemistry Pomona Certifications and Training ■ CPSWQ#0845 (Certified Professional in Stormwater Quality) • QSD/QSP #22731 (Qualified SWPPP Developer/Practitioner) • Stormwater Core Competencies Training Program • 40 Hour HAZWOPER pursuant to Title 29 of CFR section 1910.120 NPDES Experience and Skills NPDES Municipal Permit experience: Cal State University Fullerton Cal State Polytechnic University Issued by CPSWQ Inc. CASQA County of Orange • Manage selected NPDES permit provisions for clients in LA, Orange and San Bernardino Counties. Including South Pasadena, Norwalk, Signal Hill, Big Bear Lake, Stanton, Seal Beach • Represent cities in State New Development compliance audits. Seal Beach and Stanton Supervise engineering staff. • Participated in Planning Advisory Group (PAG) to develop LID provisions for Orange County cities. • Prepare and present NPDES training modules to various divisions of municipal staff. • Represent cities at various LA and Orange County -wide NPDES Program meetings. • Conducted thousands of NPDES/FOG/IW investigations and inspections. • Participate in public education events at City functions. • Prepare NPDES annual reports, Storm Water Quality Management Plans (SQMPs) and Local Implementation Plans (LIPS). Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar Jose Rodriguez, CESSWI, QSP Field Operations Supervisor Areas of Expertise Implementing NPDES and FOG Control inspection programs for public agencies. Overview Mr. Rodriguez has worked with John L. Hunter & Associates in the environmental compliance fields of NPDES, FOG and Industrial Waste for over six years. His relevant experiences and tasks include implementing NPDES municipal permit provisions such as industrial/commercial inspections, illicit discharge detection and elimination, construction inspections, public education, public agency inspections, TMDL compliance, municipal staff training and completing annual reports. In total, Mr. Rodriguez has conducted several thousand inspections for agencies such as Compton, South Gate, Hawthorne, South EI Monte, Arcadia and the Orange County Sanitation District. Education Bachelor of Science— Biology University of California, Irvine Certifications and Training • CESSWI #2830 (Certified Erosion Sediment Stormwater Inspector) Issued by CESSWI, Inc. • QSP #22917 (Qualified SWPPP Practitioner) CASQA • Basic Environmental Inspector Academy Cal/EPA • SSO-WDR Compliance Training CWEA • BMP Performance Training US EPA • Pretreatment, Pollution Prevention, Stormwater Training CWEA • 40 Hour HAZWOPER pursuant to Title 29 of CFR section 1910.120 ® Fluency in Spanish Project Specific Experience • Inspect the following for compliance with state and local environmental regulations: • NPDES Critical Sources sites (e.g. restaurants, auto shops and manufacturing facilities). • State permitted industrial and construction sites (IGPs/CGPs). • Municipal facilities (e.g. corporate yards and transfer stations). • New Developments for BMP installation and maintenance verification (SUSMP sites). • Industrial Waste and FOG pretreatment devices at permitted facilities. • Conduct environmental investigations and impose enforcement actions. • Prepare Municipal and General Industrial NPDES Annual Reports. • Conduct stormwater and wastewater sampling. • Supervise and participate in NPDES Public Outreach events. • Conduct Trash TMDL DGR studies. • Review and submit HAZMAT Business Plans and inspect facilities for compliance. Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar Mikki Klee, EIT, CPESC, QSP/D Environmental Engineer Areas of Expertise Plan Reviews: Standard Urban Stormwater Mitigation Plans (SUSMPs) Low Impact Development (LID) Plans Water Quality Management Plans (WQMPs) Industrial waste discharge permit applications Overview Ms. Klee has worked with in the environmental compliance field of NPDES for three years. Her relevant experiences and tasks include implementing NPDES municipal permit provisions such as watershed management, new development, construction, municipal staff training and representing clients in key meetings. She has also worked in the development of Stormwater Pollution Prevention Plans (SWPPPs) and Water Quality Management Plans (WQMPs). Education • B.S. in Civil Engineering, Environmental Option Cal State Polytechnic University Pomona Certifications and Training • EIT #14367 (Certified Engineer in Training) Issued by NCEES • CPESC # 7264 (Certified Professional in Erosion and Sediment Control) CPESC, Inc. • QSP/D #25307 CASQA Experience and Skills • Provide NPDES plan checking services for city clientele within Los Angeles County and Orange County • Act as primary contact for city clientele and NPDES plan preparers • Represent cities at various Los Angeles and Orange County -wide NPDES Program meetings • Conduct NPDES inspections for compliance with state and local environmental regulations • Prepare Water Quality Management Programs (WMPs) and Enhanced Water Quality Management Programs (EWMPs) to comply with the Los Angeles County MS4 Permit (Order No. R4-2012-0175) • Composed Stormwater Pollution Prevention Plans (SWPPPs) • Prepared Water Quality Management Plans (WQMPs) • Provide plan checking services for industrial waste discharge permits Fee Proposal for Professional NPDES MS4 Services for the City of Diamond Bar Anne Chang Public Outreach Manager Areas of Expertise NPDES Municipal Permits: Development and implementation of educational and outreach programs to businesses, municipal employees and the residential community in conformance with the goals and requirements of the MS4 stormwater permits. Used Oil: Responsible for maintaining the annual grant status, establishing recycling centers, educating the general public, holding events and preparation of the annual reports. Beverage Container Recycling: Responsible for educating the general public and incorporating recycling messages in event activities. Overview Ms. Chang has more than 13 years of experience in the public outreach aspect of the municipal environmental programs. Programs under her purview include: NPDES MS4, Used Oil Recycling and Beverage Container Recycling. She has helped local municipalities in planning, developing, facilitating and implementing activities and campaigns based on the guidelines of these programs. With various campaigns and outreach materials, she has not only successfully raised the awareness, but also gradually constructed pollution prevention practices and behavior among residents, businesses and school children. Ms. Chang is bilingual in English and Mandarin (Chinese). Education Master of Arts - Communications (with emphasis on Public Relations) California State University, Fullerton Project Specific Experience Ms. Chang has successfully kept all contract cities in compliance with the public outreach aspect of the LA County NPDES Model Program. Activities and campaigns she has developed and administered include, but are not limited to: • Restaurant Sidewalk Washing Campaign: Annual messages to restaurants • Pet Waste Campaign: Events and promotions at events, pet stores and veterinary hospitals • Point -of -Purchase (POP) Campaign; Ongoing outreach at hardware, grocery and auto businesses • School Outreach: Ongoing efforts to educate students • Business outreach, Service Clubs: organizes presentations • Earth Day Event: Organizes and/or attendance annual April events. Agenda # 6.9 Meeting Date: April 7, 2015 CITY COUNCIL ,® M 11/ AGENDA REPORT X19 TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Man g TITLE: Approval of FY 2015-16 City Counci Goals & Objectives RECOMMENDATION: Approve. FISCAL IMPACT: None. BACKGROUND / DISCUSSION: Each year, concurrent with the review and adoption of the municipal budget, the City Council develops its Goals & Objectives. These items reflect the projects, challenges, and legislative matters deemed by the Council to be among the most important of the fiscal year. At the March 3, 2015 study session, the City Council reviewed the 2014-15 Goals & Objectives and directed staff to bring an updated list forward for approval. Among the items that have already been or will be completed in FY 2014-15 or are otherwise no longer recommended to be retained as an active part of the Goals & Objectives in FY 2015-16 are the following: • Secure recognition of the SR -60's ongoing status as a component of the state and national freight networks in an effort to secure funding for 57/60 Interchange improvements. • Complete right-of-way acquisitions required of the Lemon Ave. on/off ramp project. • Develop a report to the City Council outlining the ongoing effectiveness of the City's ongoing traffic mitigation project programs. • Complete an update to the City's website, enhancing governmental transparency, access to information, and ease of use for the public. • Preserve Windmill structure via ownership of structure and/or property. • Commence Grand Avenue beautification project, using the chosen design as an initial standard plan for the City's streetscapes and entry signage. • Consider options for the development of a fiscally responsible City -administered public aquatics program. The staff -recommended FY 2015-16 Goals & Objectives include a slight format change from past years and include a number of new goals and objectives as noted in Attachment A. With the direction of the Council incorporated in the attached document, staff recommends the Council adopt the FY 2015-16 Goals & Objectives as pr ented. Ryan d ean, Deputy City Manager Attachnt A: FY 2015-16 City Council Goals & Objectives List Fiscal Year 2015-16 City Council Goals & Objectives Section 1: Traffic Mitigation Traffic Mitigation Goal #1 In cooperation with the City's project partners, complete the 57/60 Confluence project. New Gaal for FY 15-16 Objective 1.1: Commence construction of the westbound SR -60 on-ramp from Grand Avenue (Phase One of 57/60 Confluence Project). Objective 1.2: Commence construction of the westbound SR -60 off -ramp and auxiliary lane to Grand Avenue (Phase Two of 57/60 -Grand Confluence Project). New Objective for FY 15-16 Objective 1.3: Complete design of Local Improvements at Grand/Golden Springs and DB Golf Course Frontage and prepare for construction (Phase Three of 57/60 Confluence Project). Objective 1.4 Secure construction funding for the 57/60 freeway mainline improvements, bypass connectors and Grand Avenue bridge widening project (Phase Four of 57/60 Confluence Project). Traffic Mitigation Goal #2 In cooperation with the City's project partners, complete the 57/60 "big fix" project (includes missing connectors, carpool lanes, etc.). New Gaal for FY 15-16 Objective 2.1 Secure funding partners for the project and complete a feasibility study to determine the preferred and most effective options. Traffic Mitigation Goal #3 In cooperation with the City's project partners, complete the Lemon Avenue on/off ramp project. Objective 3.1 Begin construction and complete by December 2016. New Objective for FY 15-16 Traffic Mitigation Goal #4 Advocate for transportation solutions that are equitable in their distribution of goods movement related traffic. Objective 4.1 Maintain participation in regional goods movement planning efforts. New Objective for FY 15-16 Traffic Mitigation Goal #5 Optimize traffic flow on the City's arterial streets. New Goal for FY 2015-16 Objective 5.1 Implement the adaptive traffic control system. New Objective for FY 2015-16 Section 2: Financial Responsibility/Economic Development Fiscal Responsibility/Economic Development Goal #1 Create a long-term City-wide financial plan for preservation of the City's fixed assets, including infrastructure, buildings, parks, and other facilities. Fiscal Responsibility/Economic Development Goal #2 Stimulate growth in the local economy by attracting new businesses and jobs to Diamond Bar. New Goal for FY 15-16 Objective 2.1 Identify specific development opportunities and develop Specific Plans to revitalize the Diamond Bar Blvd./60 Fwy. commercial property area in a way that provides the greatest net benefit to the community. Objective 2.2 Proactively market the Honda property to potential hotel developers. Fiscal Responsibility/Economic Development Goal #3 Implement the plan to address the long-term financial sustainability of the City's Lighting and Landscape Assessment Districts (LLADs). New Goal for FY 2015-16 Objective 3.1 Complete implementation of updates to adjust annual assessments in District 39. New Objective for FY 2015-16 Objective 3.2 Begin discussions with the five homeowner's associations in LLAD #41 to return maintenance responsibilities to the property owners. New Objective for FY 2015-16 Section 3: Communications Communications Goal #1 In addition to regular public meetings, provide a variety of opportunities for public interaction and participation. Objective 1.1 Maintain a wide variety and expand upon existing public outreach methods, including print media (DB Connection/Envirolink), e -newsletter subscriptions, DBTV/website/YouTube channel video productions, and restaurant guide. New Objective for FY 2015-16 Section 4: General Items General Items Goal #1 Develop a City-wide branding plan that incorporates standard design elements with a unifying theme that reflects the image of Diamond Bar. Objective 2.1 Develop a plan to incorporate the features of the Grand Avenue Beautification Project at other arterial intersections and at City entry points. New Objective for FY 2015-16 General Items Goal #2 Establish a "quiet zone" on the MetroLink train line at Lemon Avenue near Walnut Elementary School. General Items Goal #3 Provide high quality, financially sustainable parks and athletic/recreation facilities. New Goal for FY 2015-16 Objective 3.1 Develop options for improved athletic facilities at Lorbeer Middle School. New Objective for FY 2015-16 General Items Goal #4 Complete a comprehensive update to the City's General Plan. New Goal for FY 2015-16 Objective 4.1 Draft and release a Request for Qualifications and Request for Proposals seeking qualified consulting services to begin conducting the public outreach process required to develop the planning principles of the revision. New Objective for FY 2.015-16 CITY COUNCIL Agenda # 6.10 -- Meeting Date: April 7 2015 AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Mana er TITLE: A RESOLUTION ACCEPTING TH EASEMENT FOR PUBLIC STREET AND SLOPE PURPOSES OVER THE BREA CANYON FLOOD CONTROL CHANNEL LOCATED AT THE NORTHEAST CORNER OF THE DIAMOND BAR BLVD./ BREA CANYON ROAD INTERSECTION. RECOMMENDATION: Adopt Resolution and authorize the City Manager to sign the Approval Letter and the Certificate of Acceptance. FINANCIAL IMPACT: This action has no financial impact on the City. The costs associated with the easement have been paid by Lennar Homes to the Los Angeles County Flood Control District in the amount of $10,950 as part of the Willow Heights Residential Development, Tract 72295. BACKGROUND/DISCUSSION: As part of the conditions of approval for Tract 72295 commonly known as the residential development, Willow Heights, a Traffic Impact Analysis (TIA) Report was reviewed and approved by the City. The TIA report indicated that widening of Diamond Bar Blvd. and Brea Canyon Road along the project frontage would be required. The widening of Diamond Bar Blvd. would need to be performed over the existing Brea Canyon Flood Control Channel that runs parallel to Brea Canyon Road as shown in Exhibit A. The Brea Canyon Flood Control Channel is a facility owned and maintained by the Los Angeles County Flood Control District (District). In order to widen Diamond Bar Blvd. over the channel and for the City to be able to maintain the roadway in the future, an easement is required from the District to the City for roadway purposes as well as associated slope purposes. The easement document has been reviewed by the Public Works Department and the City Attorney and is determined to be acceptable. PREPARED BY: DATE PREPARED: Kimberly M. Young, Senior Civil Engineer March 30, 2015 REVIEWE Davi G. 6u, C3rector of Public Works Attachments: Exhibit A Resolution 2015 -XX Approval Letter and copy of Easement, dated January 29, 2015 2 4-J V 9 S x W RESOLUTION NO. 2015 -XX A RESOLUTION OF THE CITY COUNCIL OF DIAMOND BAR ACCEPTING THE EASEMENT FOR PUBLIC STREET AND SLOPE PURPOSES OVER THE BREA CANYON FLOOD CONTROL CHANNEL LOCATED AT THE NORTHEAST CORNER OF DIAMOND BAR BLVD. AND BREA CANYON ROAD The City of Diamond Bar does hereby find, order and resolve as follows: A. RECITALS: (i.) WHEREAS,LOS ANGELES COUNTY FLOOD CONTROL DISTRICT, a body corporate and politic, has granted the City of Diamond Bar, a municipal corporation an easement for public street and slope purposes, more particularly described in the Grant of Easement attached hereto as Exhibit A; (ii.) WHEREAS, the City Engineer has reviewed, approved and recommends acceptance of the Grant of Easement for Public Street and Slope purposes; and (iii.) WHEREAS, all legal prerequisites to the acceptance of this grant and the adoption of this resolution have occurred. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Diamond Bar does hereby find and determine as follows: That all of the facts set forth in the recitals of this resolution are true and correct. 2. The City Council of the City of Diamond Bar does hereby accept the Easement for Public Street and Slope Purposes attached hereto from the Los Angeles County Flood Control District and consents to recordation of this Easement for Public Street and Slope Purposes. 3. The City Manager is authorized to execute the Acceptance Letter and the Certificate of Acceptance. APPROVED AND ADOPTED this 7th day of April, 2015. Steve Tye, Mayor Attest: Tommye Cribbins, City Clerk I, TOMMYE A. CRIBBINS, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, adopted and approved at a regular meeting of the City Council of the City of Diamond Bar held on the 7th day of April 2015, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Tommye A. Cribbins, City Clerk City of Diamond Bar 1-%1L FARBLR, January 29; 2015 COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS "To Enrich Lives Through Effectivu and Coring Service 9,W,190t I rh R�NCNT Al CPae %I HAMBRA, C ALdkO'RN [A !626,1 - 58,5100 hup'ldp, xomit) gov Mr. Geoffrey Smith Director of Community Services Lennar Homes of California, Inc, 25 Enterprise, Suile 300 Aliso Viejo, CA 926156 Dear Mr, Smith WIMIUMA&UUMNOWN DOCUMENT APPROVAL LETTER P.O BOX 1460 ALHSIAIRR A,( A U FORNi h 91802 4tA NP.PI"LEALF REI -Fl; TO 'it F SMP -6 313,041 M1423004 We are in receipt of corporate Check No. 595572, dated January 16, 2015, in the amount of $10,950, as the full and final payment for the value of the, easement rights for public street and slope purposes. from the Los Angeles County Flood Control District (LACFCD) to the City of Diamond Bar (City), in, on, over, and across Private Drain No. T395 (Brea Canyon Channel) affecting LACFCD Parcels 1GE and 1GEA. Said monies were deposited in the LACFCD's Flood Fund. This is evidenced by our Departmental Receipt No. F561068, a copy is enclosed for your records. Also enclosed is an Easement clocun-tent for the City's review based on legal descriptions prepared by Hunsaker and Associates at the direction of Lennar Homes of California, inc, (Lennar Homes). If Lennar Homes and the City accept the Easement document, please have a duly authorized City official sign the attached Document Approval Letter and return it to me in the self-addressed, stamped envelope provided. if you have any questions or require additional information, please contact mile at (626) 458-7073 or clwattsfcDdpwlqcounty.g_ov Our office hours are Monday through Thursday from 7 a.m. to 5:30 p.m. Very truly yours, GAIL FARBER Directorpf Public Works /I ;r/// JR, DONALD K. WATTS, Senior Real Property Agent Acquisition & Revenue Properties Section Survey/Mapping & Property Management Division DK\/\/.si MkI,PPUBvAWINO EE1201t',\'!,IP-6T DK'/V PI) T395 Eric, cc City of Diamond Bar (Bob Rose, David G. Liu), Lennar Homes (Andrew Han) page 1 of l httpJlapps.iiatraneUfinsys/dra print.aspx?oid [,561068&action prilitcopy 1121/2015 COUNTY OF LOS ANGELES PUSUC INORKS1 DEPARTMENT OF PUBLIC WORKS RECEIPT DATE I TIME. 1121/2015 4:30.:09 PM No: F561068 AMouNT. ;s1a.�5D ao FROM: XLENNAR HOMES PAYMENT TYPE:; AMOUNT DATE Ct ECK1X. I�,�'.CHECK f MONEY OR DEF: .CASH __�.�.v.... ?...:CREDIT -VISAIMASTER.CARD '. r.CREDIT-DISCOVER. -. Total: '810 06G 00 .. PAYMENT FOR: F PRIVATE DRAIN T395 EASEMENT FOR CITY OF DIAMOND BAR ADDITIONAL INFORMATION:. N COPIES TO DONALD WATTS CHRI5TEANA NG PREPARED BY:`- N Tao Tiffany FILL IN THE FOL OVVING Ii AVAILABLE FUND BSAI RIS Y I:F3,IEtT PRC!,61 t`+Jtd_C ALMVITY LINIT A1,101DJ BOT 9708 :M1423004 $10,950,00 - Total DEPOSIT PERMIT No (DP#),. httpJlapps.iiatraneUfinsys/dra print.aspx?oid [,561068&action prilitcopy 1121/2015 Mr. Steven G. Steinhoff, Assistant Deputy Director SMP -6 Survey/Mapping & Property Management Division 313.041 County of Los Angeles Department of Public Works M1423001 P.O. Box 1460 Alhambra, CA 91802-1460 Attention Donald K. Watts Dear Mr, Steinhoff: DOCUMENT APPROVAL LETTER We have examined and do hereby approve and accept the terms and conditions stipulated in the proposed Easement document (copy enclosed) from the Los Angeles County Flood Control District (LACFCD) to the City of Diamond Bar (City), as Grantee. We hereby authorize the County of Los Angeles Department of Public Works to record the original Easement document and mail said Dead to the above-named Grantee at the address set forth below. Signature Name Address: City of Diamond Bar Public Works Department 21810 Copley Drive Diamond Bar, CA 91765-4178 DKVV:sl R\'VPPUB\ADfV N%I6LEEQ0 5,SMP-6,L DKW PD T395 Enc. Date Title r, COOPY L66- JUrl �,U��~��� '| - i "��x:��L~ REC[)R[)|NG REQUESTED BY AhJDM[4I[TL>: City of[)|anooAd Bar 2i810Copley Drive 0un:uod H8r` CA 91765 �,,xxe Al""', 'Du' THIS uo:uuIwrmEXEMPT FROM DOCUMENTARY rxxwSpcnmxPURSUANT Tr osonox119:2urrocxnswucxrAxxImw000c mnCOCUMINTmcXEMP)mON'RECORDING FEES IUR�Uw -0 SEC�Ion 273m OF THE GOVERNMENT CODE Assessor's Identification Number: 8714-015-900 (Portion) For a valuable consideration, receipt of which is hereby acknowledged, the LOS ANGELES COUNTY FLOOD CONTROL D|STR|tT, a body corporate and politic (hereinafter referred to as DISTRICT), does hereby grant tothe CITY OF DIAMOND BAR, o I oOrpuroUnn (hereinafter referred to as C|TY), an easement for public street purposes, in, on, over, and aoonms the oaol property in the City ofDiamond Bar, County of Los Angeles, State of California, described as Parcel ICE in Exhibit A attached hereto and by this reference nnadaopart hereof. Together with an easement for slope purposes in, on, over, and across the real property in the City of Diamond Bar. County of Los AnQ*|o*. State of California, described as Parcel 1QE.1 in Exhibit attached hereto and by this reference made a part hereof, Subject to all matters of record and to the following reservation and conditions, which the CITY by the acceptance of this Easement docurnent and/or the exercise of any of the rights granted herein, agrees to keep and perform, viz: I . DISTRICT reserves the paramount right to use said and for flood control purposes %� QTY agrees that it will riot pedbon o/ arrange for the podhnnanoe Of any construction or reconstruction work in, on, ove/, and mcu)ou the land herein described, until the plans and specifications for such construction or reconstruction work shall have first been submitted to and been approved in writing by the Chief Engineer of the Los Angeles County Flood Control District. Such approval by DISTRICT shall not be interpreted or inferred as an endorsement or, approval uuinthe design, accuracy, correctness, orauthenticity nf the information shown onthe submitted plans and specifications, Furthmrnoure, such approval cannot be relied upon for any other purpose or by any third party for any nouoon whatsoever. DISTRICT dues not accept ownership orresponsibility for the Improvements. PD805CITY OFDIAMOND BAR (LENNARH0MES); T201402471(M8RJXN|:N) (F||n:PRIVATE DRAIN T385) Parcel 18E Includes Parcel |CE1 iK4.098'317 SD.4 M1423004 Project ID No. MPR0000648 D8:bw p�ocwccms^ospL000roon,oro**oonBAR nn6 FNL 12015 EXHIBIT "B" Sketch to Accompany Lcgat Desorption DIAN4 D FOR '1400 i_ RAD 'YT BAR BOULEVARD P.O.E..—PARCEL NO. 1GE NE'LY CORNER OF IV 76_ TRACT N0, 27577, WS, 702/22-25. NO2' 54'2.4" D _._ AND PROPOSED RICHT OF WAY LN-' OF LO' 76 TRACI NO. 211,717, t:n /o2/'22-2 Y RIG,fl OF WAY DfAMON© BAR BOUL.EYARO PARCEL NO. 10E ti59 54 tl - ,)'[3'26" \__ POINT "A" f.i_-',O.B. PARCEL NO.n IGPI RAD'nL TABLE I RADIA --1 BEARING -YPE I _ RADI t Di 3444 N_ k! RAD2 NOO'53 37 VJ RK) FCC I _C RADS -1 W2'71'2.'F( PA ('RC ( ) tNUICA TT RECORD DATA PER TRACT NO 27fi13 /, fJ)T702122 -25 YUNSAKE[: K ASSOCIATES I R V I N E i N c MLANNINC v ENUNEERMG SURVEYING Three Nugfv^n Irvrq CA 926'8 • F".. (949) 563lalo fX (949) S3 ms; xlc 6127/19ozF 5/26/15 1 ar_._�^._.V(`=.... `L \Uiannond_E3ar\L0\8285\SH701.d i 1717 r, Y , ROBERT L. WHEELER i'J, L:i. 8639 DATE LOS ANGELES COUNTY FLOOD CONTROL, DISTRICT GRANT Or PUBLIC HOADW" a SLOPE EASEMENT STY OF DIAMOND BAR COUNTY OF LOS ANGELES, STATE OF CALIFORNIA FAIR SCALE: 1"= 20' W.O. 3916,-72295X H&A LEGAL No. 82851 SHEET 5 OF 1 scc TABLE ��R�rt. DEI Ta T BAD US �ENdlti _ Ci 53+500" i 3)00 _ i.r6' _ 2g 03 a _ ; 36 00' _ 13 65' �C7 C 60801- I�6�00' 1789 . C4 _�.. 0 r, (.7_ (tCbn OD' ,_ 6� i 1717 r, Y , ROBERT L. WHEELER i'J, L:i. 8639 DATE LOS ANGELES COUNTY FLOOD CONTROL, DISTRICT GRANT Or PUBLIC HOADW" a SLOPE EASEMENT STY OF DIAMOND BAR COUNTY OF LOS ANGELES, STATE OF CALIFORNIA FAIR SCALE: 1"= 20' W.O. 3916,-72295X H&A LEGAL No. 82851 SHEET 5 OF 1 scc P,D�336C|TYOFDIAMOND BAR (L�NNAKM{�k�E�\; ` ' 1-201402471/MARJAN|AN\ (Fi|e:PR|\&\TEDRAIN T385) Parcel 1GL Includes Parcel 1GEA Easement Page 3. CITY shall indernnifv, defend, and save hannkyms DISTRICT, its nffioans, a0ento, and/or ornp|uyovu, from any and all oiainoo. demands, Uub||iiy' |*ss, dmnnuge, or expense to which DISTRICT, its uKica|a, ogenis, and employees may be uubiao(sd as the result of any act o/ omission by CITY, its officers, agents, employees, or contractors arising out of the exercise by CITY, its officers, agents, employees, or contractors of any of the rights granted to it by this Easement document. It is expressly Understood that DISTRICT will not be called upon to construct, repair, maintain, or reconstruct any structure or improvement to be erected or constructed pursuant to this Easement document, 5. The provisions and agreements contained in this Easement document shall be binding upon CITY, its successors, and assigns. To the extent any lawful assessment be levied pertaining to the area to which these easements apply and tothe extent that the assessment iabased onthe structures and iniprovorvon[o being constructed under the authority of this easement and provided further that the assessment be levied following CITY's exercise of these easement rigbio to construct such structures and inop,ovonoe0(u` CITY ogvywo to pay on behalf of DISTRICT that part of any such assessment levied against DISTRICT, which is based on the value contributed |othat area byC|TY'osaid improvements. Pursuant tothe authority delegated on 20___,, by the Board of Supervisors of the Los Angeles County Flood Control District, this Easement document has been executed on behalf of said DISTRICT by the Director of the County of Los Angeles Department of Public Works anthe day of 20,---,. LOS ANGELES COUNTY FLOOD CONTROL DISTRICT, abody corporate arid politic 8A|LFARBER Director ofPublic Works 8 AC KNOWLE DGMENT FORM (FOR COUNTY USE ONLY) State of California ) ss' County of Los Angeles ) On —, before me, DEAN C. LOGAN, Registrar-Recorder/County Clerk of the County of Los Angeles, personally appeared who proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/shelthey executed the same in his/her/their authorized capacity(jes), and that by hisilker"their signature(s) on the instrument the person(s), or the entity on behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. DEAN C. LOGAN, Registrar -Recorder/ County Clerk of the County of Los Angeles Deputy County Clerk (Seal) This is to certify that the interest in real property conveyed by the deed or grant herein, dated from the Los Angeles County Flood Control District, a body corporate and politic, to the City of Diamond Bar, a Municipal corporation, by the within instrument, the provisions of which are incorporated by this reference as though fully set forth in this Certification, is hereby accepted by the undersigned officer(s) on behalf of the City of Diamond Bar pursuant to authority conferred by Resolution No. —, adopted on and that the City of Diamond Bar consents to the recordation thereof by its duly authorized officer, Dated APPROVED as to title and execution 20_ DEPARTMENTOFOF -PUBLIC WORKS Survey/Mapping & Property Management Division Supervising Title Examiner Ilk "R& IRANKER DRAMS 11M ViVVE DRAIN'NO, 1105 KM MdwkE Parcel Nix ICE I AIN 8714-015-400 1'G 679 (67) 1M (09-117 SD 4 N41423004 E�RGUIMUUMII LEGAL DESCRIPI'JON In Te CR) of Uharnond Ihq (otomy of Los Angeles f;raic of CAtorni-i, bcuh-, portions of Lo! '�e of Vact Nm 27577, as Mown on a amp f1kil A Mook A)& Paps 22 duongh 21 inchmvo of hUp Books, in Me Aice of the Aunty Retnadar of said coamy. Me honniciatier of said portions bring described astolloays: ME (Easenrent far public roadwayViurpose): BEGINNING' at the northeasterly comer of said Lot 76, said point Irckift on the soutfiefly night of way line of Diamond Bto Boub-,vard: therice along the southeasterly Inar of said Lot 7n, South 30'52'17" West 12.01 feet to the beganding, of a non -tangent cin-ve concave northerly having a radius of 1060.00 fres, said curvc being ewwounc with a curve in said souledy right of way his loving 0 radius of 1050.00 feet, a radial Eric to the beprinhig of add concentric mwa hems Scauh 202A5" East, said beginning of said curve herchrafier referred to as POINT "A"; thence westerly 30.57 feet along said conmentric curve Trenrgh a central ainzie of 1°19*08" to a compunund come concave: northerly SO, a radius of 5100 feet; thence westerly 11.56 let along, said Calve through MItFat angle of 13951010 a reverse curia, concave southerly having a iekfins of 30.00 feet; thence westerly 1165 let along said cnNe Irmigb a central angle A '6'03'41": thence South 76`1722" Mist 119 Set U; a point ou the recathwestedy, !We of sAd lia 76: Ocrice ,along said no 5wesay line, fArth 30"K1i" Tait 11.24 feet to said southerly right of vmy her, beirn.,, a point an n non -tangent cul,VC, concave northerly having a radius of 1050.00 feet, a rachal lure: to said point bears South 0'19'00" lVest; thence along said southerly right of -way line and said curve, easterly 59.07 feet through a central angle of 3°I3'24" to the I&INT (IF BEGINNING- Coahiinkg an aM Of 554 Square ITCt, MON Or lees, M�HGMHHMMM LEGAL DESCR Wl ION PAUCEL M Q111, (Easement for Shape pUMOWU C01'v1ME,NClNG at the shommmioned POINf"A", said point 1 -wing the begnuong ok., smvc ConCe"'C nOrthe'rly howng a talus of 1060,00 feet. a radial fine losaid point Rows Somali East, said eurIc being conBentdc w0th the sowherly right of way lint, +4 said Diamond But Botiloord having, to ralus of 10MM ficcl, thcncc westeiy 17.99 Set Me said come dumTh a centra: angle of RIM to a point on said curvc, a iadiat line to said yho bears South 11144' East said point being, the TRUE POINT CH' 11MINNINQ dwme continuing,, westerly 12A8 Rot along said C00CUTINK CUPS IhMngh a milml angle of 0'41'07" to a mmlimmd curve concave northefly hmung a Mus of 5100 bmaj thence wwwaly 11,56 laid along said curve through a ocoftal angle of 13,151M0" to 0 reverse CUINu Larswave So"Vedy having radius of 30.00 feet; thence evethedy 13A5 feet along most curve ducagh a central angle of 26'03'41" tloote fourth 7C1742" WUS1 119 Feet to a paint on the noi-thweaer'ly the of said Lot 71 hence a1mg said mw0mcgerly line, South 3052'17" West 3(1.45 fces; theno-, South 28'19'42" East 6,05 feel: thence North 42'41'26" lnm4 7,85 feet thence North 3=13" East 2339 hal thence SouM MPIT12" East 18.42 tret; Muse South 2T4706" Wast 47,32 I'veo thence North 30Y5T17- East 14.14 feet; thence idol th3ff'5T25East 55.58 fret to the TRUE POINTOF BEGINNING. (Anwinuag an mea of S51 Square l0w, mom or bsss, As shaawn on Exhlif "Waifached hersro aral by this ielej ence made n part Iliercot Robert 1, Wheeler IV, L,S, 8639 Date: FANK Duccratmi 29,20P IVO No, 396- 722Q5 Page 2 Ul 2 4 -I&A Local No. 8225 fAq R. Heuselticin (Imlawl Hr 1. Fair SCI ; EXHIBIT "B" Sketch to Accompany Lcgat Desorption DIAN4 D FOR '1400 i_ RAD 'YT BAR BOULEVARD P.O.E..—PARCEL NO. 1GE NE'LY CORNER OF IV 76_ TRACT N0, 27577, WS, 702/22-25. NO2' 54'2.4" D _._ AND PROPOSED RICHT OF WAY LN-' OF LO' 76 TRACI NO. 211,717, t:n /o2/'22-2 Y RIG,fl OF WAY DfAMON© BAR BOUL.EYARO PARCEL NO. 10E ti59 54 tl - ,)'[3'26" \__ POINT "A" f.i_-',O.B. PARCEL NO.n IGPI RAD'nL TABLE I RADIA --1 BEARING -YPE I _ RADI t Di 3444 N_ k! RAD2 NOO'53 37 VJ RK) FCC I _C RADS -1 W2'71'2.'F( PA ('RC ( ) tNUICA TT RECORD DATA PER TRACT NO 27fi13 /, fJ)T702122 -25 YUNSAKE[: K ASSOCIATES I R V I N E i N c MLANNINC v ENUNEERMG SURVEYING Three Nugfv^n Irvrq CA 926'8 • F".. (949) 563lalo fX (949) S3 ms; xlc 6127/19ozF 5/26/15 1 ar_._�^._.V(`=.... `L \Uiannond_E3ar\L0\8285\SH701.d i 1717 r, Y , ROBERT L. WHEELER i'J, L:i. 8639 DATE LOS ANGELES COUNTY FLOOD CONTROL, DISTRICT GRANT Or PUBLIC HOADW" a SLOPE EASEMENT STY OF DIAMOND BAR COUNTY OF LOS ANGELES, STATE OF CALIFORNIA FAIR SCALE: 1"= 20' W.O. 3916,-72295X H&A LEGAL No. 82851 SHEET 5 OF 1 scc TABLE ��R�rt. DEI Ta T BAD US �ENdlti _ Ci 53+500" i 3)00 _ i.r6' _ 2g 03 a _ ; 36 00' _ 13 65' �C7 C 60801- I�6�00' 1789 . C4 _�.. 0 r, (.7_ (tCbn OD' ,_ 6� i 1717 r, Y , ROBERT L. WHEELER i'J, L:i. 8639 DATE LOS ANGELES COUNTY FLOOD CONTROL, DISTRICT GRANT Or PUBLIC HOADW" a SLOPE EASEMENT STY OF DIAMOND BAR COUNTY OF LOS ANGELES, STATE OF CALIFORNIA FAIR SCALE: 1"= 20' W.O. 3916,-72295X H&A LEGAL No. 82851 SHEET 5 OF 1 scc Agenda # 6 . 11 Meeting Date: April 7, 2015 CITY COUNCIL1 R�R �� AGENDA REPORT rb8g TO: Honorable Mayor and Members of the City Council FROM: James DeStefano, City Man '�q TITLE: Authorize City Manager to enter into a contract for annual independent audit services with Lance, Soil, & Lu ng d, LLP for the fiscal years 2014/15 through 2016/17 with an option for two one year extensions. RECOMMENDATION: Approve FINANCIAL IMPACT: Three year contract amount is not to exceed $95,861 and is to be paid for out of the General Fund. The cost of the additional years is $33,878 for FY 2017/18 and $34,896 for FY 2018/19. BACKGROUND/DISCUSSION: The City is required to engage the services of an outside, independent audit firm to audit the books and records of the City at the close of each fiscal year. This is required in order to provide the public and its constituents a comprehensive financial report that presents complete, accurate and understandable information about the City's financial condition. The City issued a Request for Proposal (RFP) for Audit Services on February 17, 2015 to nine local audit firms which specialize in governmental auditing. The responses were due March 12, 2015. Five qualified firms responded to the RFP. The Audit Committee, the City Manager and the Finance Director met on March 20, 2015 to review and discuss the responses and open the sealed cost proposals. At the conclusion of the meeting the Audit Committee recommended to retain the services of Lance, Soil & Lunghard, LLP CPA's. It is recommended that the City Council award the contract for professional audit services to Lance, Soil & Lunghard, LLP CPA's. 19MI Dianna Honeywell - Finance Dire or Attachments: 1. Consulting Services Agreement 2. Request for Proposal for Professional Audit Services 3. Response to RFP from Lance, Soil & Lunghard, LLP CPA's 4. Cost Proposal from Lance, Sol] & Lunghard, LLP CPA's Attachment 1 CONSULTING SERVICES AGREEMENT Professional Auditing Services THIS AGREEMENT (the "Agreement") is made as of April 7. 2015 by and between the City of Diamond Bar, a municipal corporation ("City") and Lance, Soll & Lunghard. LLP CPA's ("Consultant'). 1. Consultant's Services. Subject to the terms and conditions set forth in this Agreement Consultant shall provide to the reasonable satisfaction of the City the professional auditing services set forth in the attached Exhibit "A", which is incorporated herein by this reference. As a material inducement to the City to enter into this Agreement, Consultant represents and warrants that it has thoroughly investigated the work and fully understands the difficulties and restrictions in performing the work. Consultant represents that it is fully qualified to perform such consulting services by virtue of its experience and the training, education and expertise of its principals and employees. The Finance Director or authorized representative (herein referred to as the "City's Project Manager"), shall be the person to whom the Consultant will report for the performance of services hereunder. It is understood that Consultant shall coordinate its services hereunder with the City's Project Manager to the extent required by the City's Project Manager, and that all performances required hereunder by Consultant shall be performed to the satisfaction of the City's Project Manager and the City Manager 2. Term of Agreement. This Agreement shall take effect April 7, 2015, and shall continue until completion of the audit of the financial reports for the Fiscal Year ending June 30, 2017 unless earlier terminated pursuant to the provisions herein. This Agreement may be extended by the parties for up to two additional fiscal year financial report audits. 3. Compensation. City agrees to compensate Consultant for each service which Consultant performs to the satisfaction of City in compliance with the scope of services set forth in Exhibit "A". Payment will be made only after submission of proper invoices in the form specified by City. Total payment to Consultant pursuant to this Agreement shall not exceed one hundred sixty four thousand six hundred and thirty five dollars ($164,635) without the prior written consent of the City. The above not to exceed amount shall include all costs, including, but not limited to, all clerical, administrative, overhead, telephone, travel and all related expenses. 4. Payment. A. As scheduled services are completed, Consultant shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred. 1 Professional Auditing Services 1070406.1 B. All such invoices shall state the basis for the amount invoiced, including services completed, the number of hours spent and any extra work performed. C. City will pay Consultant the amount invoiced the City will pay Consultant the amount properly invoiced within 35 days of receipt, but may withhold 30% of any invoice until all work is completed, which sum shall be paid within 35 days of completion of the work and receipt of all deliverables. D. Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice. 5. Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price therefore have been previously authorized in writing and approved by the City Manager or his designee as an amendment to this Agreement. The amendment shall set forth the changes of work, extension of time, if any, and adjustment of the fee to be paid by City to Consultant. 6. Priority of Documents. In the event of any inconsistency between the provisions of this Agreement and any attached exhibits, the provisions of this Agreement shall control. 7. Status as Independent Contractor. A. Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent, except as specifically provided herein. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner employees of City. B. Consultant agrees to pay all required taxes on amounts paid to Consultant under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. In the event that City is audited by any Federal or State agency regarding the independent contractor status of Consultant and the audit in any way fails to sustain the validity of a wholly independent contractor relationship between City and Consultant, then Consultant agrees to reimburse City for all costs, including accounting and attorney's fees, arising out of such audit and any appeals relating thereto. C. Consultant shall fully comply with Workers' Compensation laws regarding Consultant and Consultant's employees. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with applicable Worker's Compensation laws. 2 Professional Auditing Services 1070406.1 D. Consultant shall, at Consultant's sole cost and expense fully secure and comply with all federal, state and local governmental permit or licensing requirements. E. In addition to any other remedies it may have, City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification required by this Agreement or for any amount or penalty levied against the City for Consultant's failure to comply with this Section. 8. Standard of Performance. Consultant shall perform all work at the standard of care and skill ordinarily exercised by members of the profession under similar conditions and represents that it and any subcontractors it may engage, possess any and all licenses which are required to perform the work contemplated by this Agreement and shall maintain all appropriate licenses during the performance of the work. 9. Indemnification. Consultant shall indemnify, defend with counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers ("Indemnitees") from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys' fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with: (1) Any and all claims under Worker's Compensation acts and other employee benefit acts with respect to Consultant's employees or Consultant's contractor's employees arising out of Consultant's work under this Agreement; and (2) Any and all claims arising out of Consultant's performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, regardless of City's passive negligence, but excepting such loss or damage which is caused by the sole active negligence or willful misconduct of the City. Should City in its sole discretion find Consultant's legal counsel unacceptable, then Consultant shall reimburse the City its costs of defense, including without limitation reasonable attorneys' fees, expert fees and all other costs and fees of litigation. The Consultant shall promptly pay any final judgment rendered against the Indemnitees. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement. Except for the Indemnitees, this Agreement shall not be construed to extend to any third party indemnification rights of any kind. 10. Insurance. A. Consultant shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, with an insurance company authorized to do business in the State of California and approved by the City the following insurance: 3 Professional Auditing Services 1070406.1 (1) a policy or policies of broad -form comprehensive general liability insurance written on an occurrence basis with minimum limits of $1,000,000.00 combined single limit coverage against any injury, death, loss or damage as a result of wrongful or negligent acts by Consultant, its officers, employees, agents, and independent contractors in performance of services under this Agreement; (2) property damage insurance with a minimum limit of $500,000.00 per occurrence; (3) automotive liability insurance written on an occurrence basis covering all owned, non -owned and hired automobiles, with minimum combined single limits coverage of $1,000,000.00; and (4) Worker's Compensation insurance when required by law, with a minimum limit of $500,000.00 or the amount required by law, whichever is greater. B. The City, its officers, employees, agents, and volunteers shall be named as additional insureds on the policies as to comprehensive general liability, property damage, and automotive liability. The policies as to comprehensive general liability, property damage, and automobile liability shall provide that they are primary, and that any insurance maintained by the City shall be excess insurance only. C. All insurance policies shall provide that the insurance coverage shall not be non -renewed, canceled, reduced, or otherwise modified (except through the addition of additional insureds to the policy) by the insurance carrier without the insurance carrier giving City at least ten (10) day's prior written notice thereof. Consultant agrees that it will not cancel, reduce or otherwise modify the insurance coverage and in the event of any of the same by the insurer to immediately notify the City. D. All policies of insurance shall cover the obligations of Consultant pursuant to the terms of this Agreement and shall be issued by an insurance company which is authorized to do business in the State of California or which is approved in writing by the City; and shall be placed have a current A.M. Best's rating of no less than A-, VII. E. Consultant shall submit to City (1) insurance certificates indicating compliance with the minimum insurance requirements above, and (2) insurance policy endorsements or a copy of the insurance policy evidencing the additional insured requirements in this Agreement, in a form acceptable to the City. F. Self -Insured Retention/Deductibles. All policies required by this Agreement shall allow City, as additional insured, to satisfy the self-insured retention ("SIR") and/or deductible of the policy in lieu of the Consultant (as the named insured) should Consultant fail to pay the SIR or deductible requirements. The amount of the SIR or deductible shall be subject to the approval of the City. Consultant understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this 4 Professional Auditing Services 1070406.1 Agreement. Failure by Consultant as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should City pay the SIR or deductible on Consultant's due to such failure in order to secure defense and indemnification as an additional insured under the policy, City may include such amounts as damages in any action against Consultant for breach of this Agreement in addition to any other damages incurred by City due to the breach. G. Subrogation. With respect to any Workers' Compensation Insurance or Employer's Liability Insurance, the insurer shall waive all rights of subrogation and contribution it may have against the Indemnitees. H. Failure to Maintain Insurance. If Consultant fails to keep the insurance required under this Agreement in full force and effect, City may take out the necessary insurance and any premiums paid, plus 10% administrative overhead, shall be paid by Consultant, which amounts may be deducted from any payments due Consultant. I. Consultant shall include all subcontractors, if any, as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to the City for review and approval. All insurance for subcontractors shall be subject to all of the requirements stated herein. 11. Confidentiality. Consultant in the course of its duties may have access to confidential data of City, private individuals, or employees of the City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this section shall survive the termination of this Agreement. Notwithstanding the foregoing, to the extent Consultant prepares reports of a proprietary nature specifically for and in connection with certain projects, the City shall not, except with Consultant's prior written consent, use the same for other unrelated projects. 12. Ownership of Materials. Except as specifically provided in this Agreement, all materials provided by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Consultant may, however, make and retain such copies of said documents and materials as Consultant may desire. 13. Maintenance and Inspection of Records. In accordance with generally accepted accounting principles, Consultant and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and other information (collectively, the "records") pertaining to the costs of and completion of services performed under this Agreement. The City and any of their authorized representatives shall have access to and the right to audit and reproduce any of Consultant's records regarding the services provided under this Agreement. Consultant shall maintain all such 5 Professional Auditing Services 1070406.1 records for a period of at least three (3) years after termination or completion of this Agreement. Consultant agrees to make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days' notice from the City, and copies thereof shall be furnished if requested. 14. Conflict of Interest. A. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest which would conflict in any manner with the performance of its services pursuant to this Agreement. B. Consultant covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of hardware or software to City as a result of the performance of this Agreement. Consultant's covenant under this section shall survive the termination of this Agreement. 15. Termination. The City may terminate this Agreement with or without cause upon fifteen (15) days' written notice to Consultant. The effective date of termination shall be upon the date specified in the notice of termination, or, in the event no date is specified, upon the fifteenth (15th) day following delivery of the notice. In the event of such termination, City agrees to pay Consultant for services satisfactorily rendered prior to the effective date of termination. Immediately upon receiving written notice of termination, Consultant shall discontinue performing services, unless the notice provides otherwise, except those services reasonably necessary to effectuate the termination. The City shall be not liable for any claim of lost profits. 16. Personnel/Designated Person. Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by Consultant or under it supervision, and all personnel engaged in the work shall be qualified to perform such services. Except as provided in this Agreement, Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant's services under this Agreement, but City reserves the right in its sole discretion to require Consultant to exclude any employee from performing services on City's premises. 17. Non -Discrimination and Equal Employment Opportunity. A. Consultant shall not discriminate as to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation, in the performance of its services and duties pursuant to this Agreement, and will comply with all rules and regulations of City relating thereto. Such nondiscrimination shall include but not be limited to the following: employment, upgrading, 6 Professional Auditing Services 1070406.1 demotion, transfers, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. B. Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation. C. Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials. % Time of Completion. Consultant agrees to complete the work necessary to present the Comprehensive Annual Financial Report for each fiscal year no later than the end of December 2015 and each December thereafter. 19. Time Is of the Essence. Time is of the essence in this Agreement. Consultant shall do all things necessary and incidental to the prosecution of Consultant's work. 20. Delays and Extensions of Time. Consultant's sole remedy for delays outside its control shall be an extension of time. No matter what the cause of the delay, Consultant must document any delay and request an extension of time in writing at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the length of the delay outside Consultant's control. If Consultant believes that delays caused by the City will cause it to incur additional costs, it must specify, in writing, why the delay has caused additional costs to be incurred and the exact amount of such cost within 10 days of the time the delay occurs. No additional costs can be paid that exceed the not to exceed amount absent a written amendment to this Agreement. In no event shall the Consultant be entitled to any claim for lost profits due to any delay, whether caused by the City or due to some other cause. 21. Assignment. Consultant shall not assign or transfer any interest in this Agreement nor the performance of any of Consultant's obligations hereunder, without the prior written consent of City, and any attempt by Consultant to so assign this Agreement or any rights, duties, or obligations arising hereunder shall be void and of no effect. 22. Compliance with Laws. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state, and local governments. 23. Non -Waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of 7 Professional Auditing Services 1070406.1 Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default. 24. Attorney's Fees. In the event that either party to this Agreement shall commence any legal or equitable action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action or proceeding shall be entitled to recover its costs of suit, including reasonable attorney's fees and costs, including costs of expert witnesses and consultants. 25. Mediation. Any dispute or controversy arising under this Agreement, or in connection with any of the terms and conditions hereof, which cannot be resolved by the parties, may be referred by the parties hereto for mediation. A third party, neutral mediation service shall be selected, as agreed upon by the parties and the costs and expenses thereof shall be borne equally by the parties hereto. The parties agree to utilize their good faith efforts to resolve any such dispute or controversy so submitted to mediation. It is specifically understood and agreed by the parties hereto that mutual good faith efforts to resolve the same any dispute or controversy as provided herein, shall be a condition precedent to the institution of any action or proceeding, whether at law or in equity with respect to any such dispute or controversy. 26. Notices. Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on (a) the day of delivery if delivered by hand during regular business hours or by facsimile before or during regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth in the Agreement, or to such other addresses as the parties may, from time to time, designate in writing pursuant to the provisions of this section. "CONSULTANT" Lance, Soll & Lunghard, LLP CPA's 203 North Brea Blvd. Suite 203 Brea, CA 92821 Phone: (714) 672-0022 Attn.: Deborah Harper, CPA "CITY" City of Diamond Bar 21810 Copley Drive Diamond Bar, CA 91765-4178 Phone: (909) 839-7000 Attn: James DeStefano 27. Governing Law. This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State of California. 28. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be the original, and all of which together shall constitute one and the same instrument. 29. Entire Agreement. This Agreement, and any other documents incorporated herein by reference, represent the entire and integrated agreement between Consultant and City. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be amended, nor any provision or breach hereof 8 Professional Auditing Services 1070406.1 waived, except in a writing signed by the parties which expressly refers to this Agreement. Amendments on behalf of the City will only be valid if signed by a person duly authorized to do so under the City's Purchasing Ordinance. IN WITNESS of this Agreement, the parties have executed this Agreement as of the date first written above. "Consultant" "City" Lance, Soll & Lunghard, LLP CPA's CITY OF DIAMOND BAR By: Printed Name: Title: By: Printed Name: Title: Approved as to form: 11 David DeBerry, City Attorney In Steve Tye, Mayor ATTEST: Tommye Cribbins, City Clerk 9 Professional Auditing Services 1070406.1 *NOTE: if Consultant is a corporation, the City requires the following signature(s): (1) the Chairman of the Board, the President or a Vice -President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City. 10 Professional Auditing Services 1070406.1 Attachment 2 0 •- '•'• • • 011110 Finance Department City of Diamond Bar 21810 Copley Drive Diamond Bar, CA 91765 1070406.1 I. INTRODUCTION........................................................................................................1 A. General Information................................................................................................1 B. Term of Engagement..............................................................................................2 II. NATURE OF SERVICES REQUIRED........................................................................2 A. Scope of the Work to be Performed........................................................................2 B. Auditing Standards to Be Followed.........................................................................3 C. Working Paper Retention........................................................................................3 D. Irregularities and Illegal Acts...................................................................................4 III. DESCRIPTION OF THE GOVERNMENT...............................................................4 A. Background Information..........................................................................................4 B. Fund Structure........................................................................................................4 C. Component Units....................................................................................................4 D. Magnitude of Finance Operations...........................................................................5 E. Computer Systems..................................................................................................5 F. Availability of Prior Reports and Work Papers........................................................5 IV. TIME REQUIREMENTS..........................................................................................5 A. Proposal Calendar..................................................................................................5 B. Date Audit May Commence....................................................................................6 C. Date Reports Are Due.............................................................................................6 V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT PREPARATION..........................................................................................................6 A. Finance Department and Clerical Assistance.........................................................6 B. Work Area, Telephone, and Office Equipment........................................................6 C. Report Preparation..................................................................................................6 VI. PROPOSAL REQUIREMENTS...............................................................................7 A. General Requirements............................................................................................7 B. Format for Technical Proposal................................................................................7 C. Contents of Technical Proposal..............................................................................7 D. Contents of Cost Proposal....................................................................................10 VII. EVALUATION PROCEDURES.............................................................................10 A. Review of Proposals.............................................................................................10 B. Evaluation Criteria.................................................................................................11 C. Oral Presentations................................................................................................12 D. Final Selection.......................................................................................................12 E. Right to Reject Proposals......................................................................................12 1070406.1 CITTOF DiAthOAD BAR REQUEST FOR PROPOSALS WN9,rdWWAAVrY6w A. General Information The City of Diamond Bar ("City") is requesting proposals from qualified certified public accountant firms to audit its financial statements for the three fiscal years beginning with the fiscal year ending June 30, 2015, with the option of auditing its financial statements for each of the two (2) subsequent fiscal years, in addition to performing other financial audits and reviews as specified below. These audits are to be performed in accordance with auditing standards generally accepted in the United States of America, the standards set forth for financial audits contained in Government Auditing Standards (1994) issued by the Comptroller General of the United States, and the U.S. Office of Management and Budget (OMB) Circular A-133 Audits of State and Local Governments and Non -Profit Organizations. All costs incurred in the preparation of proposals, in the submission of additional information, and/or in any other aspect of a proposal will be borne by the proposer. The City will not be responsible for any costs or obligation of any kind that may be incurred by a proposer. All proposals submitted to the City in response to this RFP shall become the property of the City. There will be no public opening of proposals. Prices and other proposal information will not be made public until the successful proposal is selected and a contract is awarded or presented to the City Council for award. Upon receipt by the City, proposals are considered a public record and subject to disclosure under the Public Records Act. Further, after the award of the Contract by the City, whether or not a proposer is the successful firm, all material in proposals received by the City shall be subject to the right of the public to inspect and to obtain copies. The City shall retain all proposals submitted in response to this RFP for as long as the City is required to do so under the law. In submitting a proposal, each proposer agrees that the City may reveal any trade secret and/or confidential materials contained in such response to all City staff and City officials involved in the selection process, and to any outside consultant or other third parties who are hired or appointed by the City to assist in the evaluation process. Each proposer may designate specified information as a trade secret and confidential and agrees to indemnify and hold harmless the City and each of its officers, employees, and agents from all liability, damages and expenses, including reasonable attorneys' fees, incurred by any of them in connection with the City's refusal to disclose any material that the proposer has so designated. In the event a proposer claims such exemption, the proposer must state in the response that: "Pursuant to the terms of the RFP, the proposer will indemnify the City and hold it harmless from all liability, damages and expenses, including reasonable attorney's fees, and will defend any action brought against the City for its refusal to disclose trade secret and confidential material, or other proprietary information to any person making a request thereof." Failure to include such a statement shall constitute waiver of the responder's right to exemption from disclosure and authority for the City to provide a copy of the proposal or any part thereof to the requestor. Any proposer that designates its entire proposal as a trade secret will be disqualified. 1 Professional Auditing Services 1070406.1 To be considered, five (5) copies of a proposal must be received by Dianna Honeywell, Finance Director at 21810 Copley Drive, Diamond Bar, CA 91765, by 5:00 P.M. on March 12, 2015. The City reserves the right to reject any or all proposals submitted. During the evaluation process, the City reserves the right, where it may serve the City's best interest, to request additional information or clarification from proposers, or to allow corrections of errors or omissions. At the discretion of the City, firms submitting proposals may be requested to make oral presentations as part of the evaluation process. The City reserves the right to use any idea(s) in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the proposer of the conditions contained in the RFP, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the firm selected. It is anticipated that the selection of a firm will be completed by March 27, 2015. Following the notification of the selected firm, a recommendation and contract will be finalized and taken to the City Council for approval at its April 7, 2015 meeting. A sample contract is attached to this RFP. The City reserves the right to reject any or all proposals, to waive any non -material irregularities or information in any proposal, and to accept or reject any items or combination of items. B. Term of Engagement It is the intent of the City to contract for the services presented herein for a term of three (3) years. The City of Diamond Bar reserves the right to extend the term of this contract for two (2) additional one-year terms subject to the satisfactory negotiation of terms, including a price acceptable to both the City and the selected firm. The proposal package shall present all inclusive audit fees for each year of the contract term. 1 NATURE OF f A. Scope of The City's goal is to provide the public and its constituents with a comprehensive financial report that presents complete, accurate and understandable information about the City's financial condition. The selected firm will be required to perform the following tasks: The audit firm will perform an audit of all funds of the City. The audit will be conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller of the United States. The basic financial statements for the City's Comprehensive Annual Financial Report (CAFR) will be prepared and word processed by the audit firm. The audit firm will render their auditors' report on the basic financial statements which will include both Government -Wide Financial Statements and Fund Financial Statements. The audit firm will also apply limited audit procedures to Management's Discussion and Analysis (MD&A) and required supplementary information pertaining to the General Fund and each major fund of the City. City staff will prepare the introductory and statistical sections of the CAFR. L Professional Auditing services 1070406.1 2. The audit firm will prepare the annual State Controller's Report for the City and the Diamond Bar Public Financing Authority in conjunction with the annual audit. 3. The audit firm will perform a single audit on the expenditures of federal grants in accordance with OMB Circular A-133 and render the appropriate audit reports on Internal Control over Financial Reporting based upon the audit of the City's financial statements in accordance with Government Auditing Standards and the appropriate reports on compliance with Requirements Applicable to each Major Program, Internal Control over Compliance and on the Schedule of Expenditures of Federal Awards in Accordance with OMB Circular A-133. The single audit report will include appropriate schedule of expenditures of federal awards, footnotes, findings and questioned costs, including reportable conditions and material weaknesses, and follow up on prior audit findings where required. 4. The audit firm shall perform agreed-upon auditing procedures pertaining to the City's GANN Limit (Appropriations Limit) and render a letter annually to the City regarding compliance. 5. The audit firm shall issue a separate "management letter" that includes recommendations for improvements in internal control, accounting procedures and other significant observations that are considered to be non -reportable conditions. The City may request additional services from the Proposer on an as -needed basis, such as tax consulting. It is anticipated that these additional services would not exceed 20 hours in a fiscal year. Copies of the City's most recent Comprehensive Annual Financial Reports can be found on the City's website at: www.cityofdiamondbar.com/index.aspx?page=386 B. Auditing Standards to Be Followed To meet the requirements of this Request for Proposals, the audit shall be performed in accordance with: 1. Generally accepted auditing standards as set forth by the American Institute of Certified Public Accounts; 2. The standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; 3. The provisions of the Single Audit Act; and 4. The provisions of U. S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local Governments and Non -Profit Organizations. C. Working Paper Retention All working papers and reports must be retained at the firm's expense for a minimum of seven years, unless the firm is notified in writing by the City of the need to extend the retention period. The firm will be required to make working papers available to the City or any government agencies included in the audit of federal grants. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. 3 Professional Auditing services 1070406.1 D. Irregularities and Illegal Acts Auditors shall be required to make an immediate written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the following parties: City Manager; City Attorney; and the Finance Director. If the irregularities or illegal acts involve the City Manager, City Attorney or Finance Director it shall be reported directly to the Audit Committee. The City was incorporated in 1989 as a general law city which operates under the council/manager form of government. The City is located at the junction of the 57 and 60 freeways and, as a result, is the hub of the Los Angeles basin transportation network. The City is a relatively young residential community, with a population of about 57,000 residents, which is situated among the meandering hills and valleys of the Brea Canyon. The City is a contract city and as such, it contracts for many of its services. This includes police services, building and safety services, engineering, road maintenance and landscape maintenance. The Los Angeles County Fire District provides fire protection, which is independent of the City. The City's fiscal year begins on July 1 and ends on June 30. The City's Comprehensive Annual Financial Finance Officers Association's Certificate Reporting since 1995. Report (CAFR) has received the Government :)f Achievement for Excellence in Financial The City's operating budget in FY 2014-15 is approximately $40.6 million for all funds combined. It has a Capital Improvement Budget of approximately $9.9 million. B. Fund Structure The City uses the following fund types and account groups in its financial reporting: Number of Individual Funds by Entity Number of Funds Reported in CAFR Fund Type/Account Group No. No. General Fund 1 1 Special Revenue Fund 25 16 Debt Service Fund 1 1 Capital Projects Fund 1 1 Enterprise Fund n/a n/a Internal Service Fund 4 4 General Fixed Assets Account Group 1 General Long -Term Debt Account Group 1 Component Units Q The City is defined, for financial reporting purposes, in conformity with the Governmental Accepting Standards Board's Codification Governmental Accounting and Financial 4 Professional Auditing Services 1070406.1 in 1070406.1 Reporting Standards, Section 2100. Using these criteria, component units are included in the City's financial statements. The management of the City identified the following component units (with fiscal year ending June 30) for inclusion in the City's financial statements: 1. Diamond Bar Public Financing Authority This component unit is to be audited as part of the audit of the City's financial statements. The contact person and record location is the same as the primary unit. D. Magnitude of Finance Operations The Finance Department is headed by Dianna Honeywell, Finance Director and consists of 5 full-time employees. The principal functions performed and the number of employees assigned to each is as follows: Number of Function Employees Management 1 Accounting 2 Accounts Payable/Receivable/Transit 1 Payroll 1 E. Computer systems The City's financial system is run on a Local Area Network (LAN). The accounting functions are computerized using SunGard Pentamation software on an SQL server. The applications operating on this system are general ledger, accounts payable, purchasing, payroll. Other systems used by the Finance Department include an in-house transit system used to sell transit passes from outside agencies including Metro Transit Authority and Foothill Transit Authority, The Finance Department also uses City View to process and bill for false alarms. F. Availability of Prior Reports and Work Papers Lance, Soll & Lunghard, LLP in Brea, CA has conducted the City's audits for the past five years. The work papers of the previous audits are the property of the previous auditor and can be reviewed by the successful Proposer. The following financial statements were prepared or audited by Lance, Soll & Lunghard, LLP: 1. City of Diamond Bar General Purpose Financial Statements 2. Single Audit Report 3. Appropriations Limit Report 4. State Controller's Report for the Diamond Bar Public Financing Authority A. Proposal Calendar The following is a list of key dates up to, and including, the date a contract will be awarded: Professional Auditing Services V. February 17, 2015 March 12, 2015 April 7, 2015 Request for Proposal issued Due date for proposals (due by 5:00 p.m.) Contract awarded by City Council Audit planning, documentation of systems of internal control and compliance and transaction testing should be completed during the interim stage. The City typically closes its books and is ready for the final audit by the third week of September. C. Date Reports Are Due The firm shall provide all drafts and recommendations for improvements to the Finance Director within a reasonable time period after the last day of field work. The auditor should be available for any meetings that may be necessary to discuss the draft audit reports. Once all issues of discussion are resolved, the financial statements, Single Audit report and other reports shall be delivered to the Finance Director. It is anticipated that this process will be completed and the final products are to be delivered by mid-November each year. A. Finance Department and Clerical Assistance The Finance Department staff will be available during the audit to assist the firm by providing information, documentation, and explanations. B. Work Area, Telephone, and Office Equipment The City will provide the firm with reasonable work space, desks and chairs. The firm will also be provided with access to a telephone, and photocopying and FAX machines. C. Report Preparation Following completion of the audit and preparation of the fiscal year's comprehensive financial statements and special purpose audits, the firm shall issue: 1. Reports on the fair presentation of the financial statements in accordance with auditing standards generally accepted in the United States of America as listed below: a. General Purpose Financial Statements for the City (Basic Financial Statements) b. Audit Report for the City Single Audit Act C. State Controller's Report for the City and the Diamond Bar Public Financing Authority 6 Professional Auditing services 1070406.1 2. A Management Letter addressed to the City Council of the City of Diamond Bar setting forth recommendations (as applicable) for improvements in the City's accounting systems. 3. A report on the City's compliance with Proposition 111, Article XII I. B of the California State Constitution and Government Code 7900 (et seq.) in its calculation of the "Gann Limit". VI. PROPOSAL REQUIREMENTS A. General Requirements 1. The Proposal and any inquiries concerning the Request for Proposals must be addressed to: Dianna Honeywell Finance Director 21810 Copley Drive Diamond Bar, CA 91765 (909) 839-7051 DHoneywellODiamondBarCA.00v CONTACT WITH PERSONNEL OF THE CITY OTHER THAN THE ABOVE REGARDING THIS REQUEST FOR PROPOSALS MAY BE GROUNDS FOR ELIMINATION FROM THE SELECTION PROCESS. 2. Five (5) copies of the Proposal must be received in the Finance Department of the City of Diamond Bar by 5:00 p.m. on March 12, 2015 for the proposal to be considered. The Proposal should address the items listed in sections C and D below. B. Format for Technical Proposal Title Page showing the request for proposals subject; the firm's name; the name, address and telephone number of the contact person; and the date of the proposal. 2. Table of Contents identifying the materials submitted by section and page number. Cross-referencing to section and page number in the RFP would be helpful. 3. Signed Transmittal Letter briefly stating the Proposer's understanding of the work to be done; the commitment to perform the work within the time period; and the name(s) of the person(s) authorized to represent the Proposer, title, address, and telephone number. 4. Detailed Proposal following the order set forth in Section C below. C. Contents of Technical Proposal The purpose of the Technical Proposal is to demonstrate the qualifications, competence and capacity of the firm seeking to undertake an independent audit of the City in conformity with the requirements of this request for proposals. As such, the substance of proposals will carry more weight than the form or manner of presentation. The Technical Proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned Professional Auditing services 1070406.1 to this engagement. It should also specify an audit approach that will meet the request for proposals requirements. The Technical Proposal should address all points outlined in the request for proposals (excluding any cost information which should only be included in the Sealed Dollar Cost Bid). The proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer's capabilities to satisfy the requirements of this request for proposals. While additional data may be presented, the following subjects must be included. They represent the criteria against which the proposal will be evaluated. 1. License to Practice in California An affirmative statement should be included verifying the firm and all assigned key professional staff are properly licensed to practice in California. 2. Independence The firm should provide an affirmative statement that it is independent of the City of Diamond Bar as defined by defined by auditing standards generally accepted in the United States of America and the General Accounting Office's Government Auditing Standards. 3. Firm Qualifications and Experience a. The proposer should state the size of the firm, the size of the firm's governmental audit staff, the location of the office from which the work on this engagement is to be performed, and the number and nature of the professional staff to be employed in this engagement on a full-time basis and the number and nature of the staff to be so employed on a part-time basis. Staff consistency is an important consideration. b. The proposer should provide the range of activities performed by the local office, e.g., audit, accounting, tax service and/or management consulting services. c. The proposer must provide a list of all current municipal clients. d. The proposer is also required to submit a copy of a report on its most recent external quality control review (peer review), with a statement whether that quality control review included a review of specific government engagements. e. The proposer shall also provide information on the results of any Federal or State desk reviews or field reviews of its audits during the past three (3) years. In addition, the Proposer shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with State regulatory bodies or professional organizations. 4. Partner, Supervisory and Staff Qualifications and Experience a. Identify the principal supervisory and partners, managers, other supervisors this engagement. Include resumes, registered or licensed to practice as management staff, including engagement and specialists who would be assigned to indicating whether each such person is r certified public accountant in California. 8 Professional Auditing services 10704061 Provide information on the government auditing experience of each person, including information on relevant continuing professional education for the past (3) three years and membership in professional organizations relevant to the performance of this audit. b. Provide as much information as possible regarding the number, qualifications, experience and training, including relevant continuing professional education, of the specific staff to be assigned to this engagement. Indicate how the quality of staff over the term of the agreement will be assured. c. Engagement partners, managers, other supervisory staff and specialists may be changed if those personnel leave the firm, are promoted or are assigned to another office. These personnel may also be changed for other reasons with the express prior written permission of the City. However, in either case, the City retains the right to approve or reject replacements. d. Other audit personnel may be changed at the discretion of the Proposer provided that replacements have substantially the same or better qualifications or experience. 5. Similar Engagements with Other Government Entities a. For the firm's office that will be assigned responsibility for the audit, list the most significant engagements (maximum - 5) performed in the last three (3) years that are similar to the engagement described in this request for proposals. These engagements should be ranked on the basis of total staff hours. Indicate the scope of work, date, engagement partners, total hours, and the name and telephone number of the principal client contact. Information should be provided regarding clients that the firm serves that have received the GFOA award. b. Please provide a list of not less than five client references for which services similar to those outlined in the RFP are currently being provided. For each reference listed provide the name of the organization, dates for which the service(s) are being provided, type of service(s) being provided and the name, address and telephone number of the responsible person within the reference's organization. The City reserves the right to contact any or all of the listed references regarding the audit services performed by the Proposer. 6. Specific Audit Approach The proposal should set forth a work plan, including an explanation of the audit methodology to be followed, to perform the services required in Section II of this request for proposals. In developing the work plan, reference should be made to such sources of information as City's budget and related materials, organizational charts, manuals, programs, and financial and other management information systems. Proposers will be required to provide the following information on their audit approach: Proposed segmentation for the engagement; Level of staff and number of hours to be assigned to each proposed segment of the engagement; y Professional Auditing services 1070406.1 C. Sample size and the extent to which statistical sampling is to be used in this engagement; d. Extent of use of EDP software in this engagement; e. Type and extent of analytical procedures to be used in this engagement; f. Approach to be taken to gain and document an understanding of the City's internal control structure; g. Approach to be taken in determining laws and regulations that will be subject to audit test work; and h. Approach to be taken in drawing audit samples for purposes of tests of compliance. T Identification Anticipated Potential Audit Problems The proposal should identify and describe any anticipated potential audit problems, the firm's approach to resolving these problems and any special assistance that will be requested from the City. NO DOLLAR AMOUNTS SHOULD BE INCLUDED IN THE TECHNICAL PROPOSAL, D. Contents of Cost Proposal 1. Total All -Inclusive Maximum Price The proposal shall include a cost proposal in a separate sealed envelope containing all pricing information relative to performing the audit engagement as described in this RFP. The total all-inclusive maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses. Optional services should be itemized separately. A separate hourly rate may be provided for additional as -needed consulting work, if applicable. The City will not be responsible for expenses incurred in preparing and submitting the technical proposal or the sealed dollar cost bid. Such costs should not be included in the proposal. 2. Manner of Payment Progress payment will be made on the basis of hours of work completed during the course of the engagement and out-of-pocket expenses incurred in accordance with the firm's proposal. Interim billings shall cover a period of not less than a calendar month. A. Review of Proposals The Finance Director, the Audit Committee and one designee will review and evaluate the submitted proposals. 10 Professional Auditing Services 1070406.1 B. Evaluation Criteria Proposals will be evaluated using three (3) sets of criteria. Firms meeting the mandatory criteria will have their proposals evaluated for price and technical criteria. The following represent the principal selection criteria, which will be considered during the evaluation process. Mandatory Elements Qualifications of the Firm (20 points) o The audit firm is independent and licensed to practice in California. o The firm has no conflict of interest with regard to any of the work performed by the firm for the City. o The firm adheres to the instructions in this request for proposals on preparing and submitting the proposal. o The firm submits a copy of its last external quality control review report and the firm has a record of quality audit work. o The firm's past experience and performance on comparable government engagements. Staffing and Project Organization (20 Points) o The quality of the firm's professional personnel to be assigned to the engagement and the quality of the firm's management support personnel to be available for technical consultation. o Adequacy of proposed staffing plan for various segments of the engagement. Work Plan (25 points) o Thoroughness of approach to conducting the audit of the City and demonstration of the understanding of the objectives and scope of the audit. o Commitment to timeliness in the conduct of the audit. Price and Technical Elements Fees (30 points) o Maximum fees to conduct the audit. Miscellaneous (5 points) o Proposer has demonstrated experience or knowledge of GASB 68, 11 Professional Auditing Services 1070406.1 During the evaluation process, the Audit Committee may, at their discretion, request any one or all of the firms to make oral presentations. Such presentations will provide firms with an opportunity to answer any questions the Audit Committee may have on a firm's proposal. Not all firms may be asked to make such oral presentations. D. Final Selection The Audit Committee will make the recommendation to the City Council. The contract will be approved by the City Council. E. Right to Reject Proposals Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposal unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the firm selected. The City reserves the right without prejudice to reject any or all proposals 12 Professional Auditing Services 1070406.1 AUDIT WORK COST PROPOSAL FORM CERTIFIED PUBLIC ACCOUNTANTS Attachment 4 Service 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 TOTALS City of Diamond Bar CAFR** $23,324.00 $ 24,020.00 $ 24,740.00 $ 25,480.00 $ 26,240.00 $ 123,804.00 Single Audit (up to 2 programs)* 3,592.00 3,700.00 3,810.00 3,920.00 4,040.00 19,062.00 GANN Limit included included included included included - City State Controller's Report 2,949.00 3,040.00 3,130.00 3,220.00 3,320.00 15,659.00 PFA State Controller's Report 1,150.00 1,185.00 1,221.00 1,258.00 1,296.00 6,110.00 Total for Fiscal Year (not -to -exceed)** $31,015.00 - $ 31,945.00 $ 32,901.00 $ 33,878.00 $ 34,896.00 $ 164,635.00 $1,500 for each additional program ** includes GASB 68 implementation and training to the City Level Standard Rates Quoted Rates Partner 280.00 187.60 - Manager 185.00 123.95 Senior 140.00 93.80 Staff 125.00 83.75 Clerical 110.00 73.70 mmmm:Hm AUDIT SERVICES CERTIFIED PUBLIC ACCOUNTANTS RECEIVED MAR 12 2015 FINANCE DEPARTMENT WE= Lance, Soil & Lunghard, LLP Certified Public Accountants 203 N. Brea Blvd., Suite 203 Brea, CA 92821 (714)672-0022 LSL 0 LEFT IF I EN PUBLIC ACCOUNTANTS Deborah A. Harper, CPA, Partner deborah.harper@lslcpas.com March 12, 2015 CITY OF DIAMOND BAR PROPOSAL FOR PROFESSIONAL AUDITING SERVICES TABLE OF CONTENTS Page No. TransmittalLetter....................................................................................................................1 License to Practice in California.............................................................................................. 3 Independence... ....................................... ............... ........................................ __ ........ .......... 3 FirmQualifications..................................................................................................................4 Years of Service and Office Locations ............................................ Size of Firm and Size of Governmental Audit Staff ......................... Rangeof Activities.......................................................................... PeerReview.................................................................................... DisciplinaryAction........................................................................... Retention of Working Papers.......................................................... Partner, Supervisory and Staff Qualifications and Experience ............. Assigned Personnel........................................................................ Education and Training Program Provided ..................................... Resumes of Personnel.................................................................... Deborah A. Harper, CPA, Engagement Partner ........................ Bryan S. Gruber, CPA, Concurring Partner ............................... Adam T. Odom, CPA, Audit Manager ....................................... Heather E. Anderson, Audit Senior ........................................... Similar Engagements with Other Government Entities ......................... Specific Audit Approach........................................................................ ............................. 7 ...............................14 ............15 Segmentation of the Engagement................................................................................... 15 Segment 1 -Planning and Obtaining an Understanding................................................... 15 Planning.. .............................................. ................................................................... 15 Understanding the internal control structure over the financial statements .............. 15 Segment 2 — Financial Audit Testing.............................................................................. 16 Analytical Procedures...............................................................................................16 DrawingAudit Samples............................................................................................. 16 ExitConference .......................................... ..................... ........ .............. ................ .... 17 CITY OF DIAMOND BAR PROPOSAL FOR AUDIT AND SELECT PROFESSIONAL SERVICES TABLE OF CONTENTS Segment 3 — Conclusion ...................................... Estimated Time Line ............................................ Page No. ..................................................... 17 .....................................................17 Identification of Anticipated Potential Audit Problems...........................................................18 GASB68 and GASB 71..................................................................................................18 Single Audit Compliance changes..................................................................................19 Appendices Appendix A — List of Clients............................................................................................ 20 AppendixB — Peer Review............................................................................................. 21 • David E. Hale CPA, CFP • Deborah A. Harper, CPA i' • Donald G. Slater, CPA = Gary A. Cates, CPA • Richard K. Kikuchi, CPA • Michael D. Mangold, CPA LSL• Susan E Matz, CPA = David S. Myers, CPA CERTIFIED PUDLIG dCCO UWTRNTS ° Bryan S. Gruber, CPA March 12, 2015 Dianna Honeywell, Finance Director City of Diamond Bar 21810 Copley Drive Diamond Bar, CA 91765 Lance, Soll & Lunghard, LLP is pleased to respond to your Request for Proposals for audit and select professional services. As a leader in the field of governmental accounting and auditing, we appreciate this opportunity given to us to present our professional qualifications. Because of our extensive public sector experience, dedication to excellence and determination to retain the brightest and most talented professionals, we are certain that Lance, Soil & Lunghard, LLP is the most qualified accounting firm to provide professional auditing services to the City of Diamond Bar. Lance, Soll & Lunghard, LLP agrees to provide the following services for the City of Diamond Bar for fiscal years ending June 30, 2015 through June 30, 2017, with an option to extend for an additional two years: ® Perform an audit of all funds of the City of Diamond Bar. The audit will be conducted in accordance with Generally Accepted Government Auditing Standards and Government Auditing Standards, issued by the Comptroller of the United States. A CAFR will be prepared and word processed by LSL. The CAFR will be in full compliance with all current GASB pronouncements. LSL will render its auditors' report on the basic financial statements, which will include both Government -Wide Financial Statements and Fund Financial Statements. The audit firm will also apply limited audit procedures to Management's Discussion and Analysis and required supplementary information. LSL understands that we will prepare the CAFR. ® Prepare the annual State Controller's Report for the City and the Diamond Bar Public Financing Authority. Perform a single audit on the expenditures of federal grants in accordance with OMB Circular A-133 (for fiscal year 2014-2015) and the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (forfiscal year 2015-2016 and all future years). In addition, LSL will render the appropriate reports on internal controls and compliance. The single audit report should include an appropriate schedule of expenditures of federal awards, footnotes, findings and questioned costs, including reportable conditions and material weaknesses, and a follow up on prior audit findings, where required. ® Issue a separate "management letter" that includes recommendations for improvements in internal control, accounting procedures and other significant observations that are considered to be non -reportable conditions. Lance, Sall r1 Lunghard, LLP 203 North Brea Boulevard Suite 203 ' Brea, CA 92821 TEL 714.672.6022 Fax 714.672.0331 www.lslcpas.com Orange County Temecula Valley Silicon Valley LSLa CERTIFIED FOCAL ACCOUNTANTS City of Diamond Bar ® Perform agreed-upon audit procedures pertaining to the City's GANN Limit and render a letter, annually, to the City regarding compliance. ® LSL will be available for occasional consultation throughout the year as a financial resource for the City of Diamond Bar. This proposal describes the benefits your organization would receive from Lance, Sol] & Lunghard, LLP. We are committed to provide the services presented in our proposal in accordance with the timetable specified in your request for proposal. For purposes of this proposal, Deborah A. Harper, Partner is authorized to make representations for our firm. I can be reached at the address below, by phone at (714) 672-0022 or by email at Deborah. Haroer(a)lslcoas.com. Deborah. A. Harper, Partner LANCE, BOLL & LUNGHARD, LLP TECHNICAL PROPOSAL Lance, Soil & Lunghard, LLP is a regional public accounting firm that has met the auditing needs of governmental entities throughout California for 80 years. This experience has led to the development of efficient procedures that provide numerous client benefits. Our clients have grown to understand that an audit from Lance, Soll & Lunghard, LLP provides them with a wealth of knowledge, confidence and value added services. For this and many other reasons, Lance, Soil & Lunghard, LLP has consistently been named one of the "Top Accounting Firms" in Orange County by the Orange County Business Journal. We adhere to Governmental Auditing Standards, which are governed by the United States Governmental Accountability Office by the Comptroller General of the United States, also known as the "yellow book" 2011 Revision. These standards provide guidance, known as the generally accepted government auditing standards (GAGAS), on providing a framework for conducting high quality audits with competence, integrity, objectivity, and independence. In addition, guidance from the AICPA on financial and compliance reporting, which includes Circular A-133 audits provide and support our approach and methodology of risk based auditing guiding by Statement of Auditing Standards 122-125 ("clarifying standards") implemented in 2012. Lance, Soil & Lunghard, LLP is a public accounting firm licensed by the State of California, Department of Consumer Affairs, as a Public Accounting Partnership. All of our partners and managers are Certified Public Accountants licensed by the State of California. As a firm, we are members of the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants. All key staff to be assigned to this engagement is or will be licensed by the State of California to practice as Certified Public Accountants. We meet the independence requirements as defined by Auditing Standards Generally Accepted in the United States of America and the U.S. General Accounting Office's Government Auditing Standards (December 2011 revision). We are a partnership consisting of nine partners who do not own any other business organization that has in the past, or will in the future, be providing services, supplies, materials or equipment to the City of Diamond Bar or the City's blended component units. Lance, Soil & Lunghard, LLP will provide written notice of any professional relationship entered SEA, f Eo P e , o TECHNICAL PROPOSAL .;' into during the period of the proposed agreement. We have had the pleasure of auditing the City of Diamond Bar in the preceding five years, which includes the blended component units. LSL implemented a lead audit rotation in 2013 to rotate our lead auditors in a four to five year period for all audit engagements. We believe a solid relationship is essential in excellent customer services, but a mix of audit rotation is an added service to provide a "fresh look" at the policies and procedures and still meet the duty for public service independence. This allows our clients to adhere to their responsibilities to the public for proper independence without losing the great satisfaction of firm customer service. Our firm policy was written in consideration of the Assembly Bill 1345 added section 12410.6.(b) to Government Code regarding auditor rotation requirements of public accounting firms providing audit services to local agencies, which states: "Government Code section 12410.6. (b) indicates that commencing with the 2013-14 fiscal year, a local agency shall not employ a public accounting firm to provide audit services to a local agency if the lead audit partner or coordinating audit partner having primary responsibility for the audit, or the audit partner responsible for reviewing the audit, has performed audit services for that local agency forsix consecutive fiscal years. For purposes of calculating the six consecutive fiscal years, the local agency shall not take into account any time that a public accounting firm was employed by that local agency prior to the 2013-14 fiscal year. The Controller may waive this requirement if he or she finds that another eligible public accounting firm is not available to perform the audit." Our firm will continue to provide excellent customer service which is imbedded in our firm, without constituting any conflict of interest. Two partners are provided on each proposal to provide you with an opportunity to meet other partners at the firm which your engagement will be rotated. Years of Service and Office Locations As discussed earlier, Lance, Sol[ & Lunghard, LLP is a regional public accounting firm that has met the auditing needs of governmental entities throughout California for 85 years. This experience has led to the development of efficient procedures that provide numerous client benefits. Our clients have grown to understand that an audit from Lance, Sol[ & Lunghard, LLP provides them with a wealth of knowledge, confidence and value added services. 4 We have three offices in California which provide services to the western region of the United States. Our headquarters are located in Orange County in the City of Brea, California. We also have two other offices in Temecula Valley and Silicon Valley. The audit of the City of Diamond Bar will be performed from our Orange County office. TECHNICAL PROPOSAL yOs' k l5 ,,� r..• • -0 Sizen' - Size of Firm and Size of the Firm Governmental Audit Staff Our firm has approximately 65 employees including nine partners and professional staff of approximately forty-five. Governmental staff consists of three partners, one senior manager, four managers, two supervisors, seven seniors and nine staff auditors. All personnel assigned to this engagement work on a full-time basis. Local government expertise is led by the following partners: Richard K. Kikuchi, CPA, Partner Bryan S. Gruber, CPA, Partner Deborah A. Harper, CPA, Partner Range of Activities Our activities overall cover auditing, compilation and review services, management services and income tax services. Approximately 50% of our practice deals with the public sector and related services. Generally, our public sector services break down into the following major classifications: Financial Auditing: Governmental Entities Federal Single Audits Management and/or Consulting Services: Agreed Upon Procedures Internal audits Compliance Reviews (housing compliance reviews, TDA, investment review etc.) Governmental education workshops Professional Staffing Tax services: Compilations and Reviews Financial Planning IRS audit specialist (ie., payroll audit) Tax returns (individual, corporation, non-profit/exempt, partnership, estate, etc.) TECHNICAL PROPOSAL Firm Qualifications and Experience (Continued) GFOA Award Programs We prepare the financial statements and footnote disclosures for most of our public sector clients that have received the GFOA award. All of our governmental partners, managers and seniors have been closely involved in the preparation of these L reports. See Appendix A for a sample of our public sector clients presently receiving the GFOA award. Federal Single Audits Eon We perform single audit services for all of our clients that have federal grants and meet the requirements as stipulated under OMB Circular A-133. These engagements fully comply with OMB Circular A-133 and include preparing the Schedule of Federal Expenditures along with all required opinions. Our procedures in this area were reviewed by the State Controller's Office acting in their capacity as cognizant agency and we were given high marks for our approach and documentation. See Appendix A for a complete list of our public sector clients we currently or have in the past performed a single audit. Other Local Government Engagements We have extensive experience auditing local governments throughout California and have done so for many years. Services that we have provided include: financial auditing and CAFR preparation, internal audits, program specific audits and compliance audits in programs such as housing successor compliance, child care, TDA, AQMD, Proposition A, Proposition C, Measure M, TOT, and various accounting procedure assessments. Investment Compliance Reviews We have performed reviews, for several of our clients, in regards to compliance with the entity's Investment Policy. We currently perform and issue investment reports for Coachella Valley Water District and Moulton Niguel Water District and the Cities of Chino Hills, Orange, Laguna Niguel, Indian Wells and Glendora. Peer Review We are member of the American Institute of Certified Public Accountant's Private Companies Practice Section, which has the requirement for peer review along with Generally Accepted Government Auditing Standards. We have participated in the peer review program since its inception and have undergone several peer reviews. The first review was conducted by Arthur Young & Company (now Ernst & Young) and the most recent by R.H. Johnston Accountancy Inc. Overall, they confirmed what we already knew, that our approach and procedures are in compliance with technical and professional pronouncements. All of these peer reviews covered governmental engagements. Our most recent peer review, conducted by R.H. Johnston Accountancy Inc., is included in Appendix B to this proposal. Disciplinary Action There have been no disciplinary actions against our organization since its inception. All of our Single Audit reports are desk reviewed either by the Federal cognizant agency or the State Controller's Office acting as the Oversight Agency. We have never had a report rejected by any of these agencies. In fact, TECHNICAL PROPOSAL RO Oa . we are highly regarded and recognized by the staff of the State Controller's Office as a firm that always submits top quality reports. Retention of Working Papers LSL acknowledges that if we are awarded the contract for City of Diamond Bar, we will retain the audit work papers and related audit reports for a minimum period of seven years. Assigned Personnel Deborah A. Harper, CPA Engagement Partner (field partner) Bryan S. Gruber, CPA Concurring Partner (quality control) Adam Y. Odom, CPA Audit Manager (field manager) Heather E. Anderson Audit Senior (field in -charge) 2 to 3 additional staff Education and Training Program Provided As the firm's quality control policy, and in compliance with the continuing education requirements promulgated by the AICPA, General Accounting Office and the California Society of CPAs, all our staff auditors (certified and non -certified) meet the requirement of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two year period. For our educational programs, we utilize in-house seminars, California Society of CPAs courses, AICPA Government Audit Quality Center courses, and Government Finance Officers Association courses. Our formal education program was reviewed by independent firms during our peer review process and no exceptions were noted. Resumes of Personnel As noted previously, the firm's policy of assigning audit in -charge to an engagement requires that the in -charge have at least two years of municipal auditing experience. He or she must have demonstrated a high degree of understanding of municipal accounting and auditing, as well as of the firm's overall client philosophy. Any changes in personnel at the in -charge level or above will be approved by the City of Diamond Bar. LSL's philosophy is to provide quality audit services with minimal disruption to City staff. Our focused efforts to obtain and retain quality staff have further enabled us to provide this to our clients. Resumes of personnel are as follows: TECHNICAL PROPOSAL PERSONNELRESUMES OF (Continued) DEBORAH t HARPER, Education: Bachelor of Arts Degree in Business Administration with an emphasis in Accounting - California State University, Fullerton 2000 License: Certified Public Accountant — California 2005 Continuing Total hours were 264 in last three years of which 206 Education: were in governmental accounting and auditing subjects. Ms. Harper has met the Governmental Auditing Standards requirement for governmental CPE. Memberships: California Society of Certified Public Accountants — Member since 2000 American Institute of Certified Public Accountants - Member Since 2005 California Society of Municipal Finance Officers — Associate Member since 2005 Government Finance Officers Association — Associate Member since 2005 Governmental Accounting and Auditing Committee — Member since 2011 AICPA Government Audit Quality Center— Member since 2011 Experience: Over fourteen years of experience in governmental audits. During her time with the firm, Ms. Harper has performed all phases of our government audits and made numerous presentations to Boards of Directors and Audit Committees. She has been involved on the following similar engagements: Cucamonga Valley Water District Azusa Agricultural Water Company Three Valleys Water District City of Irvine City of Corona City of Laguna Niguel City of Monrovia City of Orange City of Seal Beach City of Simi Valley Moulton Niguel Water District Coachella Valley Water District San Diego County Water Authority City of Glendora City of Fullerton City of Diamond Bar City of Banning City of Claremont City of Brea City of Chino Hills TECHNICAL PROPOSAL i Deborah A. Harper, CPA, Engagement Partner (Continued) • This work entailed the preparation of the Comprehensive Annual Financial Report for those entities involved in the award programs of the California Society of Municipal Finance Officers and the Government Finance Officers Association of the United States and Canada. • Review the audit of these entities and provide technical assistance throughout the year to provide the most up to date information with current GASB pronouncement. • Present the overall audit results to audit committees or other Board Members. • Provide training, resources, and support to financial officers. Achievements: Ms. Harper has developed and conducts various Lance, Soll & Lunghard, LLP municipal training courses for new associates and members of the firm. In 2014, Ms. Harper was accepted as a 2015 executive committee member of the AICPA Government Audit Quality Center, which is a national division for governments. As an executive board member, Ms. Harperwill participate in the development, review, and first hand discussion for updates of new standards and guidance published in the AICPA Audit Guides provided to audit firms all across the country. 4�• [401 ilk MIA INSMA11 ilk LIMA"al 41MA ilk W•. Education: Bachelor of Arts Degree in Business Administration with an emphasis in Accounting — California State University, Fullerton 2004 License: Certified Public Accountant — California 2008 Continuing Total hours were 132 in last three years of which 74 Education: were in governmental accounting and auditing subjects. Mr. Gruber has met the Governmental Auditing Standards requirement for governmental CPE. Memberships: California Society of Certified Public Accountants American Institute of Certified Public Accountants Government Finance Officers Association California Society of Municipal Finance Officers Association of Local Government Auditors Experience: Over nine years of experience in governmental audits including CAFR audits, redevelopment agency audits and Single Audits. He has also made numerous presentations to City Councils, Boards of Directors and Audit Committees. He has been involved in the following municipal engagements: Mr. Gruber has also been involved in the following engagements: Three Valleys Municipal Water District City of Palm Springs City of Cathedral City City of Duarte City of Claremont City of Solana Beach City of EI Monte City of California City City of Clearlake Orange County LAFCO City of Temecula City of La Quinta Greater LA Vector Control City of Azusa City of Oceanside City of Fontana City of La Mirada City of South Pasadena City of Rolling Hills City of San Dimas This work entailed the preparation of the Comprehensive Annual Financial Report for those entities involved in the award programs of the California Society of Municipal Finance Officers and the Government Finance Officers Association of the United States and Canada. LEflililE6 POBIIC ALt011HiA�i16 10 TECHNICAL PRIOPOSAL Bryan S. Gruber, CPA, Partner (Continued) ® Review the audit of these entities and provide technical assistance throughout the year to provide the most up to date information with current GASB pronouncement. ® Present the overall audit results to audit committees or other Board Members. Achievements: Mr. Gruber has been involved with teaching current audit and accounting related material at Lance, Sol] & Lunghard, LLP's in house training seminars. He has made numerous presentations at local chapter meetings for CSMFO on current accounting and auditing material. He also currently serves as a technical reviewer for the Government Finance Officers Association (GFOA). Serves as firm IT Specialist for his involvement in IT related controls, data mining and analysis, and auditing software. 11 TECHNICAL PROPOSAL i� Education: Bachelor of Arts Degree in Accounting — Vanguard University of Southern California, 2006 License: California - 2010 Continuing Total hours were 144 in last three years of which Education: 119 were in accounting and auditing subjects. Mr. Odom has met the Governmental Auditing Standards requirement for governmental CPE. Memberships: American Institute of Certified Public Accountants Experience: Mr. Odom has over eight years of experience in all phases of audits. He has performed all phases of the audit process, including financials statements. He has been involved in the following engagements: City of Menifee City of Seal Beach Foothill Transit Authority City of Monrovia City of Diamond Bar City of Banning City of Palm Springs Ontario Convention Center City of Ontario City of Santa Barbara City of Rancho Cucamonga City of Pasadena Lake Arrowhead Water Agency City of Laguna Niguel Long Beach Convention Center City of Seal Beach Achievements: Mr. Odom has been involved with teaching current audit and accounting related material at Lance, Soll & Lunghard, LLP's in house training seminars. He is also serves as a mentor to auditors in the firm. LSL IIV11116109th A C HIiAITS 12 TECHNICAL PROPOSAL RESUMES OF • a Education: Bachelor of Arts Degree in Business Administration, Concentration in Accounting — California State University, Fullerton, 2010 License: Certified Public Accountant - In Process Continuing Total hours were 118 in last three years of which 76 Education: were in governmental accounting and auditing subjects. Ms. Anderson has met the Governmental Auditing Standards requirement for governmental CPE. Experience: Ms. Anderson has progressed in an outstanding manner. During her time with the firm, Ms. Anderson has performed all phases of our government audits, including water districts, other special districts, CAFR audits, successor agency audits and Single Audits. She has been involved in the following municipal engagements: Ms. Anderson served as the audit lead for the engagements listed below. As the audit lead, it has been Ms. Anderson's responsibility to supervise all areas of the financial audit, which includes both the basic financial statements (CAFR) and Single Audit. City of Walnut City of Malibu City of Solana Beach City of San Marino Ms. Anderson also assisted on the following engagements: City of Coronado City of Ontario City of Escondido City of Cathedral City City of Irwindale City of Redlands Three Valleys Water District 13 City of Pomona City of South Pasadena City of Chino Hills City of Indian Wells City La Quinta City of Oceanside City of Fullerton TECHNICAL PROPOSAL City of Diamond Bar — Audit and preparation of a Comprehensive Annual Financial Report (CAFR) which receives the National award. Review and issue a report on the calculation of the City's Appropriations Limit (GANN), as required by Article XIIIB Section 1.5 of the California Constitution. Preparation of an annual State Controller's Report for the Financing Authority. Perform and prepare the Single Audit in accordance with OMB A-133, when applicable. Total hours for FY 2014 were 243 hours. Debbie Harper (Engagement Partner) Contact person: Ms. Dianna Honeywell, Finance Director (909) 839-7051. City of Chino Hills — Audit and preparation of a Comprehensive Annual Financial Report (CAFR) which receives the National award. Review and issue a report on the calculation of the City's Appropriations Limit (GANN), as required by Article XIIIB Section 1.5 of the California Constitution. Audit and preparation of the Foundation and Tres Hermanos Authority. Annual perform an Investment Review and prepare the annually prepare the City's State Controllers Report. Perform and prepare the Single Audit in accordance with OMB A-133, when applicable. Total hours for FY 2014 were 373 hours. Debbie Harper (Engagement Partner) Contact person: Ms. Judy Lancaster, Finance Director (909) 364-2600 ext2648. City of Laguna Niguel — Audit and preparation of a Comprehensive Annual Financial Report (CAFR) which receives the National award. Review and issue a report on the calculation of the City's Appropriations Limit (GANN), as required by Article XIIIB Section 1.5 of the California Constitution. Preparation of an annual review of special internal controls provided by audit committee. Perform and prepare the Single Audit in accordance with OMB A-133. Total hours for FY 2014 were 234 hours. Debbie Harper (Engagement Partner) Contact person: Mr. Stephen Erlandson, Finance Director (949) 362-4300. City of Aliso Viejo—Audit and preparation of a Comprehensive Annual Financial Report (CAFR) which receives the National award. Review and issue a report on the calculation of the City's Appropriations Limit (GANN), as required by Article XIIIB Section 1.5 of the California Constitution. Audit and preparation of the Single Audit in accordance with OMB A-133, when applicable. Annual review of the Investments. Perform an annual State Controller's Report and Street Report. Total hours for FY 2014 were 252 hours. Debbie Harper (Engagement Partner) Contact person: Ms. Gina Tharani, Finance Director (949) 425-2520 A complete client listing is provided in Appendix A and LSL welcomes the City of Diamond Bar to contact any of our clients at any time. 14 TECHNICAL PROPOSAL Specific Audit Approach Segmentation of the Engagement The services will be divided into three segments. Segment y ® Planning and Obtaining an Understanding: Planning LSL will provide an annual audit communication letter, engagement letter, and Government Audit Quality Center Information letter. The audit communication letter is to be provided to the Governing Board. In addition, this can be communicated orally to the Governing Board or sub -committee, if requested. This communication will discuss the planning stages, the responsibilities of the Governing Board, Auditors, and Management, and provide an opportunity for communication with us as the auditors. This can be conducted in a meeting with your Ad Hoc Audit & Finance Committee at their convenience to discuss the upcoming audit procedures and answer any questions or concerns of the new fiscal year that the auditor should be aware of. LSL's audit team will meet prior to our initial on-site visit to brainstorm and discuss economic conditions, industry elements, and new standards that will affect City of Diamond Bar. A trial balance is requested for our planning meeting which provides current activity analysis of City of Diamond Bar and assists the LSL team in obtaining knowledge and preparing expectations for the audit year. We will compile a list "Prepared by Client" ("PBC") items based on our review of prior year financial statements and information gathered. This will be provided to City of Diamond Bar one month prior to visit or earlier if requested. We operate on a paperless software system and provide a secured cloud based Share File portal for all clients. City of Diamond Bar will have their own file which can be customized by City of Diamond Bar to organize and upload requested schedules, support documents, etc. Understanding the internal control structure over the financial statements To gain an understanding of the internal control structure over the financial statements, we will perform procedures as required by SAS 122-125. This will include review internal controls in the area of cash; revenues and receivables; expenditures and accounts payable, and payroll when applicable. Based on the result of our review, we will issue a management letter (SAS 115 Letter) that will identify any significant deficiencies and/or material weaknesses noted. This report is required by the Government Auditing Standards issued by the Comptroller General of the United States. Auditing Standards require auditor's to obtain an understanding of the Entity and its Environment along with Assessing the Risks of Material Misstatements. LSL obtains an understanding through a variety of ways all throughout the year, but the most pertinent time each year is during our interim on-site visit. We will conduct interviews with management of finance along with each audit section responsible party (ie, cashier, accounts payable clerk, payroll clerk, etc.) to review the processes and controls through observation and discussions. Based on our observations, we will sample as we observe a "walk-through" to verify the system of control is working in accordance with policies and procedures. We will provide a list each year of randomly selected employees of City of Diamond Bar to interview for fraud interviews (SAS 99), which will consist of all levels of the City across all departments including those charged with governance. 15 TECHNICAL PROPOSAL 141MMIMAM awl 76=4 i At the conclusion of our interim on-site visit we will have an exit meeting to discuss potential weaknesses, if any, and provide any feedback for improvements or valuable information we have gathered from our outside clientele that would benefit City of Diamond Bar. Based on the information gathered each year thus far, we will utilize a customized audit program based on the risk assessment developed during our assessment of the City's internal controls and government auditing standards. The primary benefit is that the risk of omitting important procedures is substantially reduced. We believe that this approach will be the most effective and efficient by linking financial statement assertions, audit objectives, and procedures that are basic to most governmental audit engagements and critical to the compliance with other material laws and regulations. We will annually compile another customized Prepared by Client (PBC) list for the year-end on-site visit provide to City of Diamond Bar at least one month prior or earlier if requested. We will request a trial balance for our analytical review one week prior to our arrival. Analytical Procedures For the audits of the financial statements, we will use analytical procedures as an overall review of the financial information in the preliminary and final stages of the audits. These procedures are designed to assist us in planning our audits and in assessing the propriety of the conclusions reached, and in the evaluation of the overall financial statement presentation. The procedures to be utilized consist of determining expectations for percentage increases and decreases between significant revenue, expenditure and balance sheet accounts, reading the financial statements and related notes, reviewing the budget and related material, and focusing on overall relationships within the financial statements. Once determined, these are reviewed to evaluate if the changes appear reasonable or require further analysis. For all significant differences, explanations are obtained as to why the situation occurred and additional substantive procedures may be applied and related evidence gathered to resolve concerns and questions. If the City of Diamond Bar is able to provide a check register electronically for July 15` forward (period after the audit year) then we can pre -select our sample for accounts payable cut-off test work and provide that information ahead of time. Our PBC list will detail on schedules we would like provided, which is directed straight from the audit report. Support requested and sampling for these schedules will be assessed each year based on the strengths and weaknesses of City of Diamond Bar and the materiality level of the account. We will discuss our analytical variances with City of Diamond Bar and obtain documentation that provides support for the accounts. Drawing Audit Samples For the purpose of tests of controls, we use audit sampling. Tests of controls are procedures directed towards determining the effectiveness of the design or operation of an internal structure policy or procedures. Normally, audit sampling is used for tests of controls and tests of compliances that involve inspection of documents and reports indicating performance of the applicable policy or procedures and compliance with the applicable laws and regulations. These sampling procedures test the operating effectiveness of an internal control structure policy or procedures by determining how the policy or procedure was applied, the consistency with which it was applied during the audit IM TECHNICAL PROPOSAL = 1 ' � A l • .. S period, and by whom it was applied. To achieve this goal, we will draw samples in the area of disbursements, receipts and payroll when applicable. Each document selected will be tested for various attributes that are designed to verify compliance with different aspects of internal controls and applicable laws and regulations. Additionally, each sample item will be tested for coding to the proper accounts and posting to the general ledger. Exit Conference We will conduct an exit conference meeting to discuss the results of the audit, verify goals for the draft and final report. Any deficiencies will be discussed throughout the fieldwork and summarized at the exit conference. Any pending items will be discussed at this time with schedule due dates in order for the final report deadlines to be met of November 15tH Based on our year-end exit meeting we will be in contact for the final financial review. The Audit Senior and Audit Manager will review the audit results and prepare the financial report drafts. This process takes about five to seven days. Partner Review has two levels of review. The Engagement Partner will provide an initial review and provide any feedback, which takes approximately two to three days for the initial drafts of all the reports. At this time, a draft of the financial statements, Audit Communication Letter (SAS 114), Report on Internal Control (SAS 115) and the Audit Opinion will be provided to City of Diamond Bar for your review. The City will have one week to review the drafted reports and provide comments or changes. We will discuss, provide feedback, and make suggested comments to the draft and provide a second draft of the report within five days. This draft will be used by the City to prepare the introductory section, MD&A, and statistical section. Upon receiving the entire CAFR in whole, which includes the introductory section, transmittal, MD&A, and statistical section, the Manager, then Engagement Partner will review and if no major changes it will be provided to the Concurring Partner for Quality Control. This process can take up to five days. At the conclusion of the review and receipt of the signed Management Representation Letter from City of Diamond Bar we will provide the final Reports no later than November 15"'. Estimated time line For Segment 1, planning and internal control audit field work will be scheduled for one week between the week of May 1, 2015 and the week of June 30, 2015 at the convenience of the City. This can be performed earlier in the proceeding contract years. Internal control testing is flexible but should be performed within the audit fiscal year. For Segment 2, fieldwork scheduled for one week the first week of September. We will run the audit for Segment 2 with one to two staff performing fieldwork four (4) days per week, Monday through Thursday. Friday will be used to wrap up the audit files and initial work of the draft reports. If additional time is required we will utilize Friday for additional field work. 17 TECHNICAL PROPOSAL For Segment 3, the review of the audit files and completion of draft reports will be performed the week following the end of fieldwork. Partners' review of the draft reports will be performed prior to the City receiving the first draft. By 1st week of October, all draft reports will be emailed to the City for review. Responses and Comments from the City will be requested by the end of the day of October Stn. A second draft will be provided to the City by October 14th. This draft can be utilized for the City to prepare the introductory section, MD&A, and statistical section. We would request these items by October 19th and a final draft will be provided to the City by October 23rd. At this time the final draft will be reviewed by the Manager and provided to the Engagement Partner for a final review. If no major changes and the City approved the final draft it will be provided to the Concurring Partner for Quality Control by October 27th. Upon Quality Control approval Final Report will be made by November 2nd These dates are just estimates and can be discussed each year at the exit meeting. Se Ment 1, City CAFR* 3 4 1 0 1 9 Single Audit** 1 1 4 0 0 6 GANN Limit 0 0 0 0 0 0 City SCR 0 0 0 0 0 0 PFA SCR 0 0 0 0 0 0 Segment 2: City CAFR* 41 10 30 24 0 68 Single Audit** 01 0 0 1 0 1 GANN Limit 0.5 0.5 0.5 2 0.5 4 City SCR 0 0 0 0 0 0 PFA SCR 0 0 0 0 0 0 Segment 3: City CAFR* 9 20 60 62 4 155 Single Audit** 2 4 20 0 1 27 GANN Limit 0 0 0 0 0 0 City SCR 1 2 0 30 0 33 PFA SCR 11 1 0 10 1 13 Total Segments City CAFR* 16 34 91 86 5 232 Single Audit** 3 5 24 1 1 34 GANN Limit 0.5 0.5 0.5 2 0.5 4 City SCR 1 2 0 30 0 33 PFA SCR 1 11 01 101 13 Total hours 21.5 42.5 115.5 129 7.6 316 Includes additional work for Pension GASB. implementation required as of Fiscal Year 201412015 forward. ** Single audit hours for 2 major programs. The current accounting issues that will directly impact the City's financial statement presentation, scope and disclosures will be GASB 68 and GASB 71. These pronouncements will be effective in fiscal year 2015. These statements are requiring additional work for both the City and the auditor. The City will be expected to show adequate monitoring procedures are in place to reconcile and verify that the payroll information provided to their pension plan administers (CalPERS for the City of Diamond Bar) are 18 TECHNICAL PROPOSAL accurate. As a firm we will be providing webcast, email notifications, and discussion on how these should be monitored in early March. As auditors, we will be required to perform additional testing on the census data provided by the pension plans, which supports the valuations provided by pension plan administers for the Pension Liability, Net Position, and Net Pension Liability, which ultimately gets reported on the Statement of Net Position financial statements as a long-term debt. In addition the pension expenses will no longer be the result of current year contributions payments as in the past. The current pension expenses will be the true result of the current year changes in the Net Pension Liability, which accounts for the items such as; current accrued benefits for the year, interest costs, administrative expenses, changes in estimates and actuals on investment returns, and changes in assumptions or benefits. A wide -variety of pension activity changes will need to be accounted for as deferred inflows and outflows of resources, tracked, and amortized over a period of time set by GASB 68. As a firm we have been in many courses preparing for these changes. Deborah A. Harper is on the sub -committee of the Government Auditing and Accounting Committee of the State of California and personally writing with five other committee members the white paper for this GASB 68, which will be issued in early March for all of California. City. Single Audit Compliance changes There are various changes to the single audit guidelines that will impact your single audit in fiscal year 2015 and in 2016. The threshold will be raised to $750,000 for fiscal year 2016. But audit requirements will be effected during the period covered by the 2015 Supplement; the City of Diamond Bar could have federal awards expended that are subject to requirements from different sources. For example, federal awards made before December 26, 2014, are subject to the "old" OMB cost principles and administrative requirements. However, new federal awards and incremental funding actions on previously made federal awards are subject to the cost principles and administrative requirements contained in the Uniform Guidance for Federal Awards. These situations have been addressed by adding a new section will be included in Part 3 of the 2015 Supplement. The new Part 3.2 will apply to compliance testing of new federal awards and incremental funding made on or after December 26, 2014. Part 3.1, which is the previous Part 3 from the 2014 Supplement updated for normal annual changes, will apply to federal awards subject to the 'old" rules. Deborah A. Harper is also on the AICPA Government Audit Quality Center Executive Committee which is a national committee. This committee is currently reviewing the new single audit section which will be released in March. LSL will be providing their clients with a webcast, email, and face to face discussions to educate their clients on these changes. LSL also provides an annual GASB and Accounting update to all local governments in California, which will address these changes. Our proposal includes the implementation of the New Single Audit Uniform Guidelines that will need to be implemented over fiscal year 2015 and forward and the additional training that will be provided to the City. 19 eli73cr"TANILIl �trl�_l�fIFFhgNNlZIJlif Client Contact Person Service Code Years Telephone * Aliso Viejo Ms. Gina M Tharani, Director of Financial Services/Citv Treasuer F 3 949-425-2520 American Water Work Association Ms. S. Ramakrishnan, Asst. Exec. Director F 2 909-291-2114 Azusa Mr. S. Para as, Finance Director F ,S 17 626-812-5291 Banning Ms. M. Green, Accounting Manager F, S 15 951-922-3118 Bell Gardens Mr. W. Kaholokula,. Finance Director F, S 9 562-806-7708 ,Big Bear Lake Ms. K. Ent, Director of Admin. Services F, S 16 909-866-5831 Burbank Ms. Cindy L Giraldo 1 2 818-238-5487 Canyon Lake Mr. T. Shea, Finance Director F 18 909-244-2955 " Cathedral City Mr. K Biersack, Fiscal Officer F,S 4 760-770-0378 * Chino Hills Ms. J. Lancaster, Finance Director F, S 16 909-364-2600 Chula Vista Ms. M. Kachadoorian, Finance Directorr F,S New 619-409-5815 Claremont Mr. A. Pirrie, Acting Finance Director F, S 9 909-399-5460 * Coachella Valley Water District Ms. Kay Godbe , Finance Director F, S 1 760-398-2661 Corona Ms. Kerry Eden, Finance Director F, S 3 951-736-2315 Coronado Ms. L. Suelter, Finance Director F, S 7 619-522-7300 Cucamon a Valley Water District Mr. Chad Brantley, Finance Officer F,S 2 909-483-7453 Diamond Bar Ms. Dianna Honeywell, Finance Director F, S 3 909-839-7051 Duarte Ms. K. Petersen, Finance Director - F 7 626-357-7931 ` Escondido Ms. J. Ryan, Acting Finance Director F, S 4 760-839-4338 * Emeryville Ms. D. Auker, Finance Director F, S 10 510-596-4352 * Fullerton Ms. J. James, Director of Admin. Services F, S 2 714-738-6522 * Fontana Ms. L. Strong, Director of Admin. Services F, S 20 909-350-6778 Foothill Transit Authority Mn G. Vittorio, Acting Finance Director F, S 9 626-967-2274 * Glendora Ms. E. Stoddard, Accounting Manager F, S 10 626-914-8238 Greater Los Angeles Vector Control Mr. K Bayless, District Manager F 4 562-758-6501 Hidden Hills - Ms. C. Pa Iia, City Clerk F 28 818-888-9281 " Indian Wells Mr. K. McCarthy, Finance Director F, S 2 760-346-2489 * Irvine Ms. D. Mullally, Manager of Fiscal Services F, S 3 949-724-6037 Irwindale Ms. E. Carreon, Finance Director F 18 626-430-2221 * La Mirada Ms. M. Pas ual, Finance Manager F, S 10 562-943-0131 * La Quinta Ms. R. Byrd, Finance Director F, S 7 760-777-7150 Laguna Niguel Mr. S. Erlandson, Finance Director F, S 3 949-362-4358 * Malibu Ms. R. Feldman, Finance Director F 10 310-456-2489 " Manhattan Beach Mr. B. Moe, Finance Director F 11 310-802-5553 Monrovia Mr. M. Alvarado, Director of Admin. Services F, S 13 626-932-5510 * Moreno Valley Mr. R. Teichert, Finance & Admin Sys Dir. F, S 2 951-413-3021 " Ontario Mr. G. Yee, Director of Admin. Services F, S 15 909-395-2000 * Orange Mr. R. Jacobs, Finance Director F, S 3 714-744-2235 * Orange County Water District Mr. R. Fick, Chief Financial Officer F, S 2 714-378-3271 " Palm Springs Mr. G. Kiehl, Finance Director F, S 4 760-323-8229 Palos Verdes Estates Ms. L. Yamamoto, Acting Finance Director F 3 310-378-0383 Pomona Ms. P. Chamberlain, Finance Director F, S 2 909-620-2355 Rancho Cucamonga Ms. T. Layne, Finance Officer F, S 36 909-989-1851 " Redlands Ms. T. Kundi , Finance Director F, S 3 909-798-7543 Rolling Hills Mr. J. Walker, Finance Director F 5 310-377-1521 San Carlos Ms. R. Mendenhall, Acting Admin Svcs Dir F,S 3 650-802-4221 * Santa Cruz Mr. M. Pimentel, Director of Finance F, S 2 831-420-5050 San Dimas Ms. B. Bishop, Finance Director F, S 53 909-394-6200 San Marino Ms. L. Bailey, Finance Director F 21 626-300-0700 * Seal Beach Ms. V. Beatle , Finance Director F, S 3 562-431-2527 ' Simi Valley Mr. J. Purtee, Asst City Manager F, S 6 805-583-6747 " South Pasadena Mr. D. Batt, Acting Finance Director F 11 626-403-7250 Three Valles Water District Mr. R. Hansen, General Manager F 6 909-626-4631 " Vista Mr. D. Nielsen, Finance Manager F 5 760-639-6170 x1023 * Walnut Ms. Marie Santos, Finance Manager F 42 909-595-7543 * lWildomar Mr. G. Nord uist, Finance Director F 5 951-677-7751 Service Codes: F - Financial Audit S - Single Audit of Federal Grants in accordance with OMB Circular A-133 1 - Internal Audit Services * - Participates in Award Programs and has received or anticipates receiving outstanding award 20 R.H. JOHNSTON ACCOUNTANCY INC. Appendix B A Professional Corporation 21300 Victory Boulevard, Suite 750 Woodland Hills, California 91367 (818)346-9800 Fax(818)346-0609 System Review Report November 13, 2013 To the Partners of Lance, Soll & Lunghard, LLP and the Peer Review Committee of the California Society of CPAs We have reviewed the system of quality control for the accounting and auditing practice of Lance, Sell & Lunghard, LLP (the firm) in effect for the year ended May 31, 2013. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.aicpa.org/prsummary. As required by the standards, engagements selected for review included engagements performed under Government Auditing Standards, and an audit of employee benefit plan. In our opinion, the system of quality control for the accounting and auditing practice of Lance, Soll & Lunghard, LLP in effect for the year ended May 31, 2013, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in confer inity with applicable professional standards in all material respects. Finns can receive a rating of pass, pass with deficiency(ies) or fail. Lance, Sell & Lunghard, LLP has received a peer review rating of pass. )e'v. 21 Agenda # 6 . 12 (a) Meeting Date: April 7 2015 CITY COUNCIL AGENDA REPORT �okmaN�� j989 TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Manag r TITLE: RESOLUTION OF THE CITY C UNCIL OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 38 AND DIRECT THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING TO BE SET FOR THE MAY 19, 2015 REGULAR MEETING. RECOMMENDATION: Approve. FINANCIAL SUMMARY: As shown on the attached Engineer's Report District and $192,095 of the General Fund maintenance costs budgeted in special fund BACKGROUND/DISCUSSION: , $268,305 of assessment generated by this are proposed to pay for the operation and No. 138. The attached Engineer's Report for the City's Landscaping Assessment District Number 38, which is prepared pursuant to provisions of the Landscaping and Lighting Act of 1972 of Part 2 of Division 15 of the Streets and Highways Code of the State of California, includes authority for the report, estimated costs of improvements, a diagram for the District and the assessments. The estimated number of parcels within the District is 17,887 parcels. The amount assessed upon the lands within District Number 38 for Fiscal Year 2014-2015 was $15.00 per parcel. The amount to be assessed for Fiscal Year 2015-2016 is to remain at $15.00 per parcel. The assessments will be utilized towards the general maintenance of City's medians and parkways. The proposed assessment has been determined to be exempt from the provisions of Proposition 218 as set forth in section 5 (a): Any assessment imposed exclusively to finance the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood control drainage systems or vector control. Prepared By: David G. Liu Director of Public Works Attachments: Resolution No. 2015 -XX Exhibits A-1, B-1 Engineer's Report, dated March 2015 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 38 AND DIRECT THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE MAY 19, 2015 REGULAR MEETING. A. RECITALS. (i) Heretofore the City of Diamond Bar Assessment District No. 38 ("District') was created pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§§ 22500, et. seq.). (ii) SCI Consulting Group, the Engineer of Work, has prepared, filed with the City Clerk and presented to this Council a report relating to said assessment district pursuant to the provisions of the California Streets and Highways Code § 22623. (iii) All legal prerequisites to the adoption of this Resolution have occurred. B. RESOLUTION. NOW, THEREFORE, THE City Council of the City of Diamond Bar does hereby find, determine and resolve as follows: 1. The Recitals, as set forth in Part A of this Resolution, are in all respects true and correct. 2. The above-described report submitted by the Engineer of Work relating to City of Diamond Bar Assessment District No. 38 is hereby approved as filed. 3. This Council hereby declares its intention to levy and collect assessments during fiscal year 2015-16 pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, known as the "Landscaping and Lighting Act of 1972," within that area designated "City of Diamond Bar Assessment District No. 38," as shown on Exhibit "A-1" attached hereto and incorporated herein by reference. 1 4. A general description of the improvements proposed for the aforementioned district is as follows: The installation, maintenance and servicing of landscaping and any facilities which are appurtenant thereto or which are necessary or convenient for the maintenance and servicing thereof, including but not limited to, repair, removal or replacement, grading, clearing, removal of debris, pruning, fertilization, pest control and weed control, and the installation or construction of appurtenant facilities, including curbs, gutters, walls, sidewalks or paving, or water, irrigation, drainage, or electrical facilities. Said installation, maintenance and servicing of the landscaping and installation, maintenance and servicing of related work shall be within the area of Assessment District No. 38 as shown on Exhibit "A-1." The location and type of improvement is shown on Exhibit "B-1," as attached hereto and incorporated herein by reference. 5. Reference is hereby made to the Engineer's Report relating to the said assessment district hereinabove approved. Said report is on file with the City Clerk of the City of Diamond Bar and contains a full and detailed description of the improvements, the boundaries of the assessment district and contains the proposed assessments upon assessable lots and parcels of land within City of Diamond Bar Assessment District No. 38 for fiscal year 2015-16. Said proposed assessment per lot is the amount of $15.00, the same amount which was levied in fiscal year 2014-15. 6. This Council hereby fixes 6:45 p.m. on May 19, 2015 in the Auditorium located at the AQMD/Government Center, 21865 Copley Drive, Diamond Bar, California, as the time and place for a hearing before this Council on this question of the levy of the proposed assessments on assessable lots with City of Diamond Bar Assessment District No. 38 for fiscal year 2015-16 and hereby gives notice of said hearing. K 7. The City Council hereby determines and declares that the proposed assessments constitute a continuation of assessments existing on the effective date of Article XIIID of the California Constitution, that the assessments are imposed exclusively to finance the capital costs and maintenance and operation expenses for streets and sidewalks and that the assessments are exempt from the requirements of Article XIIID, Section 4 of the California Constitution. 8. The City Clerk shall: (a) Certify to the adoption of this Resolution; and (b) Cause a true and correct copy of this Resolution to be published pursuant to California Government Code § 6061. PASSED, ADOPTED AND APPROVED this 7th day of April, 2015. Steve Tye Mayor I, TOMMYE CRIBBINS, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on the 7th day of April, 2015, by the following Roll Call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: ATTEST: Tommy Cribbins, City Clerk City of Diamond Bar 3 4 IN I. HIM i rr nnn.,.11ow WU M111.7,1,10 1 radAA�•� AAS K �40ryi��1<4.00„1, 1 h n �Q�!,w� i►AO�� I�' I 4 H fir- • III/ . y� r LANDSCAPING ASSESSMENT DISTRICT NO. 38 FISCAL YEAR 2015-16 MARCH 2015 PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, GOVERNMENT CODE AND ARTICLE XIIID OF THE CALIFORNIA CONSTITUTION ENGINEER OF WORK: SCIConsultingGroup 4745 MANGELSBOULEVARD FAIRFIELD, CALIFORNIA 94534 PHONE 707.430.4300 FAx 707.430.4319 W W W.SCI-CG.COM (THIS PAGE INTENTIONALLY LEFT BLANK) PAGE CITY OF DIAMOND BAR CITY COUNCIL Steve Tye, Mayor Nancy A. Lyons, Mayor Pro Tem Carol Herrera, Councilmember Jimmy Lin, Councilmember Jack Tanaka, Councilmember CITY MANAGER James DeStefano PUBLIC WORKS DIRECTOR / CITY ENGINEER David Liu COMMUNITY SERVICES DIRECTOR Bob Rose CITY ATTORNEY David DeBerry ENGINEER OF WORK SCI Consulting Group CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT N0. 38 S0ConsultingGroup ENGINEER'S REPORT. FISCAL YEAR 2015-16 PAGE II (THIS PAGE INTENTIONALLY LEFT BLANK) CITY OF DIAMOND BAR --- LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT N0.38 S0ConsultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE III TABLE OF CONTENTS INTRODUCTION...................................................................................................................... 5 OVERVIEW...................................................................................................................... 5 ENGINEERS REPORT AND CONTINUATION OF ASSESSMENTS .............................................. 5 LEGISLATIVE ANALYSIS.................................................................................................... 6 PLANS & SPECIFICATIONS...................................................................................................... 9 FISCAL YEAR 2015-16 ESTIMATE OF COST AND BUDGET.......................................................11 BUDGET FOR FISCAL YEAR 2015-16...............................................................................11 METHOD OF ASSESSMENT APPORTIONMENT..........................................................................13 METHOD OF APPORTIONMENT........................................................................................ 13 DISCUSSION OF BENEFIT................................................................................................ 13 SPECIAL BENEFIT..........................................................................................................14 GENERAL VERSUS SPECIAL BENEFIT.............................................................................. 16 BENEFIT FINDING........................................................................................................... 17 METHOD OF APPORTIONMENT........................................................................................ 20 ANNUAL ASSESSMENT CALCULATION.............................................................................. 20 DURATION OF ASSESSMENT........................................................................................... 21 APPEALS OF ASSESSMENTS LEVIED TO PROPERTY........................................................... 21 ASSESSMENT FUNDS MUST BE EXPENDED WITHIN THE DISTRICT AREA ............................. 21 ASSESSMENT...................................................................................................................... 22 ASSESSMENT DIAGRAM........................................................................................................ 24 ASSESSMENTROLL............................................................................................................. 26 CIN OF DIAMOND BAR go - LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 38 S IConsu14ingGroup ENGINEERS REPORT, FISCALYEAR 2015-16 PAGE IV LIST OF TABLES TABLE 1 - FY 2015-16 ESTIMATE OF COSTS......................................................................... 11 TABLE 2- FY 2015-16 SUMMARY COST ESTIMATE FOR LANDSCAPING ASSESSMENT DISTRICT N0. 38.............................................................................................................................. 22 CITY OF DIAMOND BAR ON -- LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT N0.38 .SpMCdnsultingGroup ENGINEER'S REPORT, FISCALYEAR 2015-16 INTRODUCTION OVERVIEW The City of Diamond Bar (the "City") services and maintains perimeter and median landscaping, and other improvements ("Improvements") to various parts of the City. In order to fund the maintenance and operation ("Services") of these projects and improvements, Landscaping Assessment District No. 38 ("District") was formed in 1984 by the County of Los Angeles prior to the incorporation of the City of Diamond Bar. Upon incorporation in 1989, the City assumed jurisdiction over the District. This Engineer's Report ("Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the 2015-16 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the "Act") and Article XIIID of the California Constitution (the "Article"). ENGINEER'S REPORT AND CONTINUATION OF ASSESSMENTS The assessments have been continued for over 30 years. In each subsequent year for which the assessments will be continued, the Diamond Bar City Council (the "Council") must direct the preparation of an Engineer's Report, budgets, and proposed assessments for the upcoming fiscal year. After the report is completed, the City Council may preliminarily approve the Engineer's Report and the continued assessments and establish the date for a public hearing on the continuation of the assessments. Accordingly, this Engineer's Report (the "Report") was prepared pursuant to the direction of the City Council. As required by the Act, this Report includes plans and specifications, a diagram or map of the District, the benefits received by property from the Improvements within the District, and the method of assessment apportionment to lots and parcels within the District. If the Council approves this Engineer's Report and the continuation of the Assessments by resolution, a notice of public hearing must be published in a local newspaper at least 10 days prior to the date of the public hearing. The resolution preliminarily approving the Engineer's Report and establishing the date for a public hearing is typically used for this notice. Following the minimum 10 -day time period after publishing the notice, a public hearing is held for the purpose of allowing public testimony about the proposed continuation of the Assessments. This hearing is currently scheduled for May 19 2015. At this hearing, the Council will consider approval of a resolution confirming the continuation of the Assessments for fiscal year 2015-16. If so confirmed and approved, the Assessments would be submitted to the Los Angeles County Auditor/Controller for inclusion on the property tax rolls for fiscal year 2015-16. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT N0.38 ENGINEER'S REPORT, FISCALYEAR 2015-16 PAGE 6 Beginning in 2015, SCI Consulting Group became the Assessment Engineer for the District. To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer's reports has been retained herein and is cited in italics as appropriate. LEGISLATIVE ANALYSIS PROPOSITION 218 The Right to Vote on Taxes Act was approved by the voters of California on November 6, 1996, and is now Article XIIIC and MID of the California Constitution. Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services and improvements, as well as maintenance and operation expenses to a public improvement which benefits the assessed property. SILICON VALLEY TAXPAYERS ASSOCIATION, INC. V SANTA CLARA COUNTY OPEN SPACE AUTHORITY (2008) 44 CAL. 4T1431 In July of 2008, the California Supreme Court issued its ruling on the Silicon Valley Taxpayers Association, Inc, v. Santa Clara County Open Space Authority (" SVTA"). This ruling is significant in that the Court clarified how Proposition 218 made changes to the determination of special benefit. The Court also found that: • Benefit assessments are for special, not general, benefit • The services and/or improvements funded by assessments must be clearly defined ■ Special benefits are directly received by and provide a direct advantage to property in the Improvement District • The assessment paid by property should be proportional to the special benefits it receives from the Improvements This Engineer's Report and the process used to establish the continuation of the assessments for fiscal year 2015-16 are consistent with the SVTA decision and with the requirements of Article XIIIC and MID of the California Constitution based on the following factors: The District is drawn to include the entire City; although only parcels deriving special benefits are included in the assessment rolls. Thus, zones of benefit are not required and the assessment revenue derived from real property in the District is expended only on the Improvements in the District. 2. The Improvements which are constructed and maintained with assessment proceeds in the District are located in close proximity to the real property subject to the assessment. The Improvements provide landscaping and other services to the residents of such assessed property. The proximity of the Improvements to the assessed parcels provides a special benefit to the parcel being assessed pursuant to the factors outlined by the Supreme Court in that decision. CITY OF DIAMOND BAR WA- - LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 38 SC iConsultingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 3. Due to their proximity to the assessed parcels, the Improvements financed with assessment revenues in the District benefit the properties in that District in a manner different in kind from the benefit that other parcels of real property in the City derive from such Improvements, and the benefits conferred on such property in the District are more extensive than a general increase in property values. 4. The assessments paid in the District are proportional to the special benefit that each parcel within that Assessment District receives from the Improvements because: a. The specific landscaping Improvements and maintenance and utility costs thereof in the District are specified in this Report; and b. Such Improvement and maintenance costs in the District are allocated among different types of property located within the District, and equally among those properties which have similar characteristics, such as single-family residential parcels, multi -family residential parcels, commercial parcels, industrial parcels, etc. DAHMS V. DOWNTOWN POMONA PROPERTY (2009)174 CAL. APP. 41H708 In Dahms v. Downtown Pomona Property("Dahms') the Court upheld an assessment that was 100% special benefit (i.e. 0% general benefit) on the rationale that the services and improvements funded by the assessments were directly provided to property in the assessment district. The Court also upheld discounts and exemptions from the assessment for certain properties. BONANDER V. TOWN OF TIBURON (2009) 180 CAL. APP. 41, 103 Bonander v. Town of Tiburon ("Bonander), the 1st District Court of Appeal overturned a benefit assessment approved by property owners to pay for placing overhead utility lines underground in an area of the Town of Tiburon. The Court invalidated the assessments primarily on the grounds that the assessments had been apportioned to assessed property based on the costs within sub -areas of the assessment district instead of the overall cost of the improvements and the overall proportional special benefits. BEUTz V. COUNTY OF RIVERSIDE (2010)184 CAL. APP. 4TH 1516 Steven Beutz v. County of Riverside ("BeutY) the Court overturned an assessment for park maintenance in Wildomar, California, primarily because the general benefits associated with improvements and services were not explicitly calculated, quantified and separated from the special benefits. GOLDEN HILL NEIGHBORHOOD ASSOCIATION V. CITY OF SAN DIEGO (2011)199 CAL. APP. 4TH 416 On September 22, 2011, the San Diego Court of Appeal issued a decision on the Golden Hill Neighborhood Association v. City of San Diego appeal. This decision overturned an assessment for street and landscaping maintenance in the Greater Golden Hill neighborhood of San Diego, California. The court described two primary reasons for its decision. First, like in Beutz, the court found the general benefits associated with services CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 38 S 6ConsultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 8 were not explicitly calculated, quantified and separated from the special benefits. Second, the court found that the City had failed to record the basis for the assessment on its own parcels. COMPLIANCE WITH CURRENT LAW This Engineer's Report is consistent with the SVTA decision and with the requirements of Article XI IIC and XI IID of the California Constitution because the Improvements to be funded are clearly defined; the benefiting property in the District enjoys close and unique proximity, access and views to the Improvements; the Improvements serve as an extension of usable land area for benefiting properties in the District and such special benefits provide a direct advantage to property in the District that is not enjoyed by the public at large or other property. This Engineer's Report is consistent with Beutz, Dahms and Greater Golden Hill because the Improvements will directly benefit property in the District and the general benefits have been explicitly calculated and quantified and excluded from the Assessments. The Engineer's Report is consistent with Bonander because the Assessments have been apportioned based on the overall cost of the Improvements and Services proportional special benefit to each property, rather than the proportional cost to the District to provide the Improvements to specific properties. CITY OF DIAMOND BAR on LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 38 SC&ConsurtingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE PLANS $ SPECIFICATIONS The City maintains landscaping and other improvements in locations within the District's boundaries. The work and improvements to be undertaken by Landscaping Assessment District No. 38, ("District"), and the cost thereof paid from the levy of the annual Assessment provide special benefit to Assessor Parcels within the District as defined in the Method of Assessment herein. In addition to the definitions provided by the Landscaping and Lighting Act of 1972 (the "Act"), the work and improvements are generally described as follows: MEDIANS The landscaped islands to be maintained by the District are located as follows: • Diamond Bar Blvd • Grand Ave • Golden Springs Rd — 57 fwy overcrossing to West City Limits • Golden Prados Dr — Golden Springs Dr to Hopi St ■ Tin Dr — Great Bend Dr to Diamond Bar Blvd • Lemon Ave — Lycoming St to Golden Springs Rd PARKWAYS The landscaped parkways to be maintained by the District are located as follows: • Grand Ave — Summit Ridge to Diamond Bar Blvd, north side • Temple Ave — Diamond Bar Blvd to Golden Springs Rd, south side • Golden Springs Dr — Ballena Dr to End of cul-de-sac • Golden Springs Dr— EI Encino Dr to Platina Dr • Golden Springs Dr— Rancheria Rd to end of cul-de-sac • Diamond Bar Blvd — Mountain Laurel Way to Maple Hill Rd • Pathfinder Rd — Evergreen Springs Dr to end of cul-de-sac • Brea Canyon Rd — Gerndal St • Golden Springs Rd — at Adel Ave • Brea Canyon Rd — South of Pathfinder Rd to southerly City Limits, both sides • Sunset Crossing — Big Falls Dr to Chapparal Dr TURF AREAS The landscaped turf areas to be maintained by the District are located as follows: • Diamond Bar Blvd — at Gold Rush Dr • Grand Ave (east side) —from south of Rolling Knoll Dr to driveway at the Diamond Bar Center • Sunset Crossing Rd — at Chapparal Dr Installation, maintenance and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, CIN OF DIAMOND BAR --__'_ LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 38 SCIConsultingGroup ENGINEERS REPORT. FISCAL YEAR 2015-16 PAGE 10 drainage systems, lighting, fencing, entry monuments, security patrols to protect the Improvements, graffiti removal and repainting, and labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District. As applied herein, "Installation" means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways and drainage and lights. "Maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including repair, removal or replacement of all or any part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste, and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. "Servicing" means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements; or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (Streets & Highways Code §22526). Modifications to the District structure could include, but are not limited to, substantial changes or expansion of the Improvements provided, substantial changes in the service provided, modifications or restructuring of the District including annexation or detachment of specific parcels, revisions in the method of apportionment, or proposed new or increased assessments. The assessment proceeds will be exclusively used for Improvements within the District plus incidental expenses. CITY OF DIAMOND BAR BE LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 38 SC &ConsultingGroup ENGINEER'S REPORT, FISCALYEAR 2015-16 PAGE 11 FISCAL YEAR 2015-16 ESTIMATE OF COST AND BUDGET BUDGET FOR FISCAL YEAR 2015-16 The 1972 Act provides that the total costs for providing the maintenance and servicing of the District Improvements and facilities can be recovered in the assessment spread including incidental expenses. The latter can include engineering fees, legal fees, printing, mailing, postage, publishing and all other costs identified with the District proceedings. An estimate of District costs for fiscal year 2015-16 for the maintenance and servicing of the Improvements is provided below. TABLE 1— FY 2015-16 ESTIMATE OF COSTS Expenditure Item Amount Salaries & Benefits (subsidized by General Fund) $ 33,951 Operating Expenses Advertising 5,000 Utilities $ 153,000 Maintenance of Grounds/Buildings 16,200 Professional Services 5,500 Contract Services 246,749 Capital Improvements 0 Reserve for Future Capital Improvements 0 Estimated Expenditures $ 460,400 Revenue Item Amount Direct Benefit Assessments FY 2015/16 $ 268,305 General Fund Contribution $ 192,095 Estimated Revenues $ 460,400 Budget Allocation to Parcels Amount Total Assessment Budget^ $ 268,305 Total Assessable Parcels 17,887 Assessment per Parcel $ 15.00 CITY OF DIAMOND BAR go LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT N0.38 SC: ConsultingGroup ENGINEERS REPORT, FISCALYEAR 2015-16 PAGE 12 Notes to Estimate of Costs: A. The Act requires that proceeds from the assessments must be deposited into a special fund that has been set up for the revenues and expenditures of the District. Moreover, funds raised by the assessment shall be used only for the purposes stated within this Report. Any balance remaining at the end of the Fiscal Year, June 30, must be carried over to the next Fiscal Year. The District may also establish a reserve fund for contingencies and special projects as well as a capital improvement fund for accumulating funds for larger capital improvement projects or capital renovation needs. Any remaining balance would either be placed in the reserve fund, the capital improvement fund, or would be used to reduce future years' assessments. CITY OF DIAMOND BAR No LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 38 SCIConsultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 13 METHOD OF ASSESSMENT APPORTIONMENT METHOD OF APPORTIONMENT This section of the Engineer's Report explains the benefits to be derived from the Improvements and the methodology used to apportion the total assessment to properties within the District. The District consists of certain assessor parcels within the boundaries as defined by the Assessment Diagram referenced in this report and the parcels identified by the Assessor Parcel Numbers listed with the levy roll. The parcel list includes all privately and publically owned parcels as shown. The method used for apportioning the Assessment is based upon the relative special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The Assessment is apportioned to lots and parcels in proportion to the relative special benefit from the Improvements. The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the Improvements and the second step is to allocate the Assessments to property based on the estimated relative special benefit for each type of property. DISCUSSION OF BENEFIT In summary, the Assessments can only be levied based on the special benefit to property. This benefit is received by property over and above any general benefits. With reference to the requirements for assessments, Section 22573 of the Landscaping and Lighting Act of 1972 states: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that assessments must be based on the special benefit to property and that the value of the special benefits must exceed the cost of the assessment: "No assessment shall be imposed on any parcel which exceeds the reasonable cost ofthe proportional special benefit conferred on thatparcel. " The following benefit categories summarize the types of special benefit to residential, commercial, industrial and other lots and parcels resulting from the Improvements to be CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT N0.38 S RC®nsu[tingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 14 provided with the assessment proceeds. These types of special benefit are summarized as follows: A. Proximity to Improved Landscaped Areas and Other Public Improvements within the District. B. Access to Improved landscaped areas and Other Public Improvements within the District. C. Improved Views within the District. D. Extension of a property's outdoor areas and green spaces for properties within close proximity to the Improvements. In this case, the recent SVTA v. SCCOSA decision provides enhanced clarity to the definitions of special benefits to properties from similar improvements in three distinct areas: • Proximity • Expanded or improved access • Views The SVTA v. SCCOSA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA v. SCCOSA decision also provides specific guidance that park improvements are a direct advantage and special benefit to property that is proximate to a park that is improved by an assessment: The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district's property values). Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments. Moreover, the Dahms decision further clarified that certain services and improvements funded by assessments, that are over and above what otherwise would be provided and that other property in general and the public do not share or receive are 100% special benefit. The assessment -funded services upheld by Dahms included streetscape maintenance and security services. SPECIAL BENEFIT The District was formed by a different engineer of record. From the original Engineer's Report, the primary special benefits on landscaping are as set forth below: CIN OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 38 m^` CI[ConsultingGroup ENGINEER's REPORT, FISCAL YEAR 2015-16 PAGE 15 9. Beautification of the streets which are used by all of the residents in Diamond Bar. 2 A sense of community pride resulting from well-maintained green spaces. 3. The enhancement of the value ofpropetty which results from the foregoing benefits.I In addition, SCI assessment engineers have identified the following special benefits: PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share. In absence of the Assessments, the Improvements would not be provided and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair. Therefore, the Assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District. ACCESS TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Since the parcels in the District are nearly the only parcels that enjoy close access to the Improvements, they directly benefit from the unique close access to improved landscaping areas and other public improvements that are provided by the Assessments. This is a direct advantage and special benefit to property in the District. IMPROVED VIEWS WITHIN THE ASSESSMENT DISTRICTS The City, by maintaining permanent public improvements funded by the Assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the Assessments are anotherdirect and tangible advantage that is uniquely conferred upon property in the District. EXTENSION OF A PROPERTYS OUTDOORAREAS AND GREEN SPACES FOR PROPERTIES WITHIN CLOSE PROXIMITY TO THE IMPROVEMENTS In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial and other benefiting properties in the District do not have large outdoor areas and green spaces. The Improvements within the District provide From the Engineers Report, Update of Assessment District No. 38, Fiscal Year 2014-15, City of Diamond Bar, dated June 3, 2014 CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 38 ;SCConsultingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 16 additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements. GENERAL VERSUS SPECIAL BENEFIT Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to "separate the general benefits from the special benefits conferred on a parcel." The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section. In other words: Total General Special Benefit _ Benefit + Benefit There is no widely -accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not "particular and distinct" and are not "over and above" benefits received by other properties. SVTA vs. SCCOSA provides some clarification by indicating that general benefits provide "an indirect, derivative advantage" and are not necessarily proximate to the improvements. In this Report, the general benefit is liberally estimated and described, and then budgeted so that it is funded by sources other than the Assessment. The starting point for evaluating general and special benefits is the current, baseline level of service. The Assessment will fund Improvements `over and above" this general, baseline level and the general benefits estimated in this section are over and above the baseline. A formula to estimate the general benefit is listed below: Benefit to Real Benefit to Real General _ Property Outside Property Inside the Benefit to Benefit — the Assessment + Assessment District + the Public District that is Indirect and at Large Derivative CIN OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT N0.38 S IConaultingCroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 17 Special benefit, on the other hand, is defined in the state constitution as "a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large." The SVTA v. SCCOSA decision indicates that a special benefit is conferred to a property if it "receives a direct advantage from the improvement (e.g., proximity to a park)." In these Assessments, as noted, properties in the District have close and unique proximity, views and access to the Improvements and uniquely improved desirability from the Improvements and other properties and the public at large do not receive significant benefits because they do not have proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special, and is only minimally received by property outside the Districts or the public at large. BENEFIT FINDING QUANTIFICATION OF GENERAL BENEFIT In this section, the general benefit from landscaping and other types of Improvements is liberally estimated and described, and then budgeted so that it is funded by sources other than the Assessment. BENEFIT TO PROPERTY OUTSIDE THE ASSESSMENT DISTRICTS Properties within the District receive almost all of the special benefits from the Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large. However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the Assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis performed by SCI Consulting Group. Since the properties outside the District but with frontage abutting the Improvements cannot be assessed by the District, this is a form of general benefit to other property. The primary way that parcels outside the district benefit by the Improvements is from views. Therefore, parcels that abut the landscape areas and are not separated from the Improvements by a privacy fence are counted for this general benefit. Since very few of the Improvements lie at the District boundary near occupied parcels, there are very few parcels in this category. The general benefit to property outside of the District is calculated as follows. ASSUMPTIONS: ® 18 parcels outside the District ® 17,887 parcels in the District CALCULATION: General Benefit to property outside the District = 18/(18+17,887) = 0.10% CIN OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT NO. 38 .SSC ICfonSultingGroup ENGINEER'S REPORT, FISCALYEAR 2015-16 PAGE 18 BENEFIT TO PROPERTY /NSIDETHE ASSESSMENT DISTRICTS THAT IS /NDIRECTANDDERIVAT/VE The "indirect and derivative" benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly "over and above" and "particular and distinct" when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District. Nevertheless, the SVTA vs. SCCOSA decision indicates there may be general benefit "conferred on real property located in the district" A measure of the general benefits to property within the Assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as major roads, rail lines and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. Approximately 4.43% of the land area in the District is used for such regional purposes, so this is a measure of the general benefits to property within the District. BENEFIT TO THE PUBLIC AT LARGE The general benefit to the public at large can be estimated by the proportionate amount of time that the District's Improvements are used and enjoyed by individuals who are not residents, employees, customers or property owners in the District. It should be noted that these Improvements do not attract the public at large in the same way as park improvements — and they confer far less benefit to the public at large than do similar park improvements. In essence, the public does not visit an area to enjoy landscaping in the same way as they may visit a park. One way to measure the special benefit to the general public is by the vehicle trips through an area with Improvements by people who are not residents within the District. Of the four ways benefits are conferred (proximity, access, views, extension of a property's green space, and creation of lots), the only benefit that is conferred by way of pass -by vehicle trips is views, which accounts for 25% of the total benefits. This is further reduced to 10% due the brevity of the views and because views are less critically important and are enjoyed much less often to the average non-resident driver than to a resident. Specific data is not available for the number of vehicle trips by non-residents of the District past the Improvements, which lie mostly on arterial roadways. A conservative estimate of vehicle trips by non-residents is 50% of all vehicle trips. Therefore (50% of 10% =) 5.00% of the benefits from the other Improvements are general benefits to the public at large. TOTAL GENERAL BENEFITS Using a sum of these three measures of general benefit, we find that approximately 9.53% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment. CITY OF DIAMOND BAR ------ LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 38 S. !ConsultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 19 LANDSCAPING GENERAL BENEFIT CALCULATION 0.10% (Outside the District) 4.43% (Property within the District) 5.00% (Public at Large) 9.53% (Total General Benefit) Although this analysis finds that 9.53% of the assessment may provide general benefits from the Improvements, the Assessment Engineer establishes a requirement for a minimum contribution from sources other than the assessments of 10%. This minimum contribution above the measure of general benefits will serve to provide additional coverage for any other general benefits. CURRENT GENERAL BENEFIT CONTRIBUTION FROM THE CITY This general benefit cannot be funded from the Assessments; it must be funded from other sources such as the City's General Fund or other non -District funds. These contributions can also be in the form of in -lieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City of Diamond Bar will contribute both monetary and in -lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the District's Assessments. A summary and quantification of these other contributions from the City is discussed below: The City of Diamond Bar owns, maintains, rehabilitates and replaces curb and gutter along the border of the District Improvements. This curb and gutter serves to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements. The contribution from the City towards general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 5%. The City owns and maintains a storm drainage system along the border of the District Improvements. This system serves to prevent flooding and associated damage to the Improvements, and manage urban runoff including local pollutants loading from the Improvements. The contribution from the City towards general benefit from the maintenance, and operation of the local storm drainage system is conservatively estimated to be 5%. The City owns and maintains local public streets along the border of the District Improvements. These public streets provide access to the Improvements for its enjoyment as well as efficient maintenance. The contribution from the City towards general benefit from the maintenance of local public streets is conservatively estimated to be 5%. The value of the construction of the improvements can be quantified and monetized as an annuity. Since this construction was performed and paid for by non -assessment funds, this CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 38 SC IConsultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE20 "annuity" can be used to offset general benefit costs, and is conservatively estimated to contribute 10%. The total General Benefit is liberally quantified at 10% which is entirely offset by the conservatively quantified total non -assessment contribution towards general benefit described above of 25%. Therefore, no additional General Benefit must be funded by the City. METHOD OF APPORTIONMENT The development of an Assessment methodology requires apportioning to determine the relative special benefit for each property. As the District was formed by a different engineer of record, the precise language from the most recent Engineer's Report is included below: The net amount to be assessed upon lands within the District in accordance with this report is apportioned by a formula and method which fairly distributes the amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each lot or parcel from the Improvements, namely the maintenance and servicing ofpublic landscaping improvements within such District. The maintenance and servicing of public landscaping improvements installed and constructed in public places in the City of Diamond Bar pro vides a special benefit which is received by each and every lot or parcel within the District, tending to enhance their value. The primary benefits on landscaping are as set forth below.• 1. Beautification of the streets which are used by all of the residents in Diamond Bar. 2. A sense ofcommunitypride resulting from well-maintained green spaces. 3. The enhancement of the value ofproperty which results from the foregoing benefits. The existing land use information indicates that well o ver 90 percent of the parcels within the CityofDiamond Bar are residences. Because the special benefits derived apply equally to all residents and parcels, it has been determined that all assessable parcels would receive the same net assessmentz ANNUAL ASSESSMENT CALCULATION For fiscal year 2015-16 the amount of Assessments for the District is not increased from prior years. The estimated assessment per parcel is $15.00. 2 From the Engineer's Report, Update of Assessment District No. 38, Fiscal Year 2014-15, City of Diamond Bar, dated June 3, 2014 CIN OF DIAMOND BAR up LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT N0.38 SC RConsuptingG roupS ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 21 DURATION OF ASSESSMENT The District was formed or annexed in previous years. It is proposed that the Assessments be continued every year after their formation or annexation, so long as the public Improvements need to be maintained and improved, and the City requires funding from the Assessments for these Improvements in the District. As noted previously, the Assessment can continue to be levied annually after the City Council approves an annually updated Engineer's Report, budget for the Assessment, Improvements to be provided, and other specifics of the Assessment. In addition, the City Council must hold an annual public hearing to continue the Assessment. APPEALS OF ASSESSMENTS LEVIED TO PROPERTY Any property owner who feels that the Assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the City of Diamond Bar City Administrator or his or her designee. Any such appeal is limited to correction of an Assessment during the then -current Fiscal Year and applicable law. Upon the filing of any such appeal, the City Administrator or his or her designee will promptly review the appeal and any information provided by the property owner. If the City Administrator or his or her designee finds that the Assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Administrator or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the City Administrator or his or her designee shall be referred to the Diamond Bar City Council, and the decision of the City Council shall be final. ASSESSMENT FUNDS MUST BE EXPENDED WITHIN THE DISTRICTAREA The net available Assessment funds, after incidental, administrative, financing and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT N0.38 SCIConsultingGroup ENGINEERS REPORT. FISCALYEAR 2015-16 ASSESSMENT PAGE 22 WHEREAS, the City of Diamond Bar directed the undersigned engineer of Work to prepare and file a report presenting an estimate of costs, a Diagram for the District and an assessment of the estimated costs of the Improvements upon all assessable parcels within the District; Now, THEREFORE, the undersigned, by virtue of the power vested in me under the Act, Article XIIID of the California Constitution, and the order of the City of Diamond Bar City Council, hereby makes the following Assessment to cover the portion of the estimated cost of the Improvements, and the costs and expenses incidental thereto to be paid by the District. The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the District for the Fiscal Year 2015-16 is generally as follows: TABLE 2 — FY 2015-16 SUMMARY COST ESTIMATE FOR LANDSCAPING ASSESSMENT DISTRICT No. 38 Salaries & Benefits $ 33,951 Operating Expenses & Services 426,449 Capital Expenses 0 Total for Services $ 460,400 Less General Fund Contribution (192,095) Less Other Revenue 0 Net Amount to Assessments $ 268,305 As required by the Act, an Assessment Diagram of the District is hereto attached and incorporated herein by reference. The distinctive number of each parcel or lot of land in the District is its Assessor Parcel Number appearing on the Assessment Roll. I do hereby assess and apportion the net amount of the cost and expenses of the Improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within the District, in accordance with the special benefits to be received by each parcel or lot, from the Improvements, and more particularly set forth in the Estimate of Cost and Method of Assessment in the Report. The Assessment is made upon the parcels or lots of land within the District in proportion to the special benefits to be received by the parcels or lots of land, from the Improvements. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 38 SCtConsultingGr®ura ENGINEER'S REPORT, FISCALYEAR 2015-16 PAGE 23 Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the County of Los Angeles for the Fiscal Year 2015-16. For a more particular description of the property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of the County. I hereby will place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the Fiscal Year 2015-16 for each parcel or lot of land within the District. Dated: March 26, 2015 oQROFESS/ON9 W. BCissFyc 17� W C 52091 m By * EXP. 12-31.16 q� CA�\FOe� OF CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 36 ENGINEER'S REPORT, FISCAL YEAR 2015-16 Engineer of Work Bliss, License No. C052091 PAGE 24 ASSESSMENT DIAGRAM The District boundary is conterminous with the City Limits. The parcels to be assessed in Landscaping Assessment District No. 38 are shown on the Assessment Diagram, which is on file with the City Clerk of the City of Diamond Bar, and includes all those properties included in the original formation of the District and subsequent annexations. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions as shown on the maps of the Assessor of the County of Los Angeles, for Fiscal Year 2015-16, and are incorporated herein by reference, and made a part of this Diagram and this Report. CITY OF DIAMOND BAR - LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 38 SC ConsuitingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 25 CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT N0.38 ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE26 ASSESSMENT ROLL An Assessment Roll (a listing of all parcels assessed within the District and the amount of the Assessment) will be filed with the City Clerk and is, by reference, made part of this Report and is available for public inspection during normal office hours at the City Hall at 21810 Copley Drive, 2nd floor, Diamond Bar, California 91765. Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County Assessor records and these records are, by reference, made part of this Report. These records shall govern for all details concerning the description of the lots or parcels. CIN OF DIAMOND BAR - - LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No, 38 `_+C IC;onsulti ngGroup ENGINEER'S REPORT. FISCAL YEAR 2015-16 CITY COUNCIL Agenda # 6 . 12 (b) Meeting Date April 7 2015 AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Mana r TITLE: RESOLUTION OF THE CITY OU NCIL OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 39 AND DIRECT THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING TO BE SET FOR THE MAY 19, 2015 REGULAR MEETING. RECOMMENDATION: Approve. FINANCIAL SUMMARY: As shown on the attached Engineer's Report, the $295,236 of assessment generated by this District and $6,759 of General Fund are proposed to pay for the operation and maintenance costs budgeted in special fund No. 139. BACKGROUND/DISCUSSION: The attached Engineer's Report for the City's Landscaping Assessment District Number 39, which is prepared pursuant to provisions of the Landscaping and Lighting Act of 1972 of Part 2 of Division 15 of the Streets and Highways Code of the State of California, includes authority for the report, estimated costs of operation and maintenance, a diagram for the District and the assessments. The estimated number of parcels within the District is 1,251 parcels. The amount assessed upon the lands within District Number 39 for Fiscal Year 2014-2015 was $130.00 per parcel. The amount to be assessed for Fiscal Year 2015-2016 is proposed to be set at $236.00 per parcel. This increase over the prior year is intended to have the District pay for the operation and maintenance costs for which it was formed and to decrease the amount of General Fund subsidy required to operate the District. While this is an increase, it is not higher than the original assessment set at the time of the 1985 District formation, which assessment was approved by and pursuant to a petition signed by the property owners who owned all of the parcels at the time the District was formed. Pursuant to the Landscaping and Lighting Act of 1972 as amended in 2000 to conform to Articles XIIIC and XIIID of the California Constitution, a majority protest process is required for any annual assessment that is increased from any previous year as defined in Government Code Section 54954.6. Subsection 54954.6(a) (1) (C) provides that the term "new or increased assessment" does not include "an ongoing annual assessment if it is imposed at the same or lower amount as any previous year." Because the assessment is being imposed in the same amount as in a previous year, it is not subject to the majority protest procedure. In addition, Article XIIID, section 5, of the California Constitution, exempts from the majority protest procedure any assessment which was imposed pursuant to a petition signed by persons owning all of the parcels subject to the assessment at the time the assessment was initially imposed. The $236 per parcel assessment was imposed pursuant to such a petition when the District was first formed and assessments were initially imposed. The assessments will be utilized towards the general maintenance of slopes, open space areas and the five (5) mini parks within District 39. Prepared By: David G. Liu Director of Public Works Attachments: Resolution No. 2015 -XX Exhibits A-2; B-2 Engineer's Report, dated March 2015 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 39 AND DIRECT THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE MAY 19, 2015 REGULAR MEETING. A. RECITALS. (i) Heretofore the City of Diamond Bar Assessment District No. 39 was created pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§§ 22500, et. seq.). (ii) SCI Consulting Group, the Engineer of Work, has prepared, filed with the City Clerk and presented to this Council a report relating to said assessment district pursuant to the provisions of the California Streets and Highways Code § 22623. (iii) No substantial changes in existing improvements are proposed for said Assessment District No. 39. (iv) All legal prerequisites to the adoption of this Resolution have occurred. B. RESOLUTION. NOW, THEREFORE, THE City Council of the City of Diamond Bar does hereby find, determine and resolve as follows: 1. The Recitals, as set forth in Part A of this Resolution, are in all respects true and correct. 2. The above-described report submitted by the Engineer of Work relating to City of Diamond Bar Assessment District No. 39 is hereby approved as filed. 3. This Council hereby declares its intention to levy and collect assessments during fiscal year 2015-16 pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, known as the "Landscaping and Lighting Act of 1972," within that area designated "City of Diamond Bar Assessment District No. 39," as shown on Exhibit "A-2" attached hereto and incorporated herein by reference. 4. A general description of the improvements proposed for the aforementioned district is as follows: 1 The maintenance and servicing of landscaping and any facilities which are appurtenant thereto or which are necessary or convenient for the maintenance and servicing thereof, including but not limited to, repair, removal or replacement, grading, clearing, removal of debris, pruning, fertilization, pest control and weed control, and the installation or construction of appurtenant facilities, including curbs, gutters, walls, sidewalks or paving, or water, irrigation, drainage, or electrical facilities. Said maintenance and servicing of the landscaping and installation, maintenance and servicing of related work shall be within the area of Assessment District No. 39 as shown on Exhibit "A-2." The location and type of improvement is shown on Exhibit "B-2," as attached hereto and incorporated herein by reference." 5. Reference is hereby made to the report of the Engineer's Report relating to the said assessment district hereinabove approved. Said report is on file with the City Clerk of the City of Diamond Bar and contains a full and detailed description of the improvements, the boundaries of the assessment district and contains the proposed assessments upon assessable lots and parcels of land within City of Diamond Bar Assessment District No. 39 for fiscal year 2015-2016. Said proposed assessment per lot is the amount of $236.00, the same amount which had been levied in certain previous years and which amount was levied pursuant to a petition signed by persons owning all of the parcels subject to the assessment when Assessment District No. 39 was first formed. 6. This Council hereby fixes 6:45 p.m. on May 19, 2015 in the Auditorium located at the AQMD/Government Center, 21865 Copley Drive, Diamond Bar, California, as the time and place for a hearing before this Council on this question of the levy of the proposed assessments on assessable lots with City of Diamond Bar Assessment District No. 39 for fiscal year 2015-16 and hereby gives notice of said hearing. 7. The City Council hereby determines and declares that the proposed assessments constitute a continuation of assessments existing on the effective `a date of Article XIIID of the California Constitution, that Assessment District No. 39 was formed pursuant to a petition signed by the persons owning all of the parcels subject to the assessment at the time the assessment was initially imposed, that pursuant to Article XIIID, Section 5, the amount of the assessment is the same as the amount imposed pursuant to such petition and that the assessment being imposed is at the same amount assessed in a previous year as such term is used in Streets and Highways Code § 22630.5. 8. The City Clerk shall: (a) Certify to the adoption of this Resolution; and (b) Cause a true and correct copy of this Resolution to be published pursuant to California Government Code § 6061. PASSED, ADOPTED AND APPROVED this 7th day of April, 2015. Steve Tye Mayor I, TOMMYE CRIBBINS, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on 7th day of April, 2015, by the following Roll Call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: ATTEST: Tommye Cribbins, City Clerk City of Diamond Bar 3 LANDSCAPING ASSESSMENT DISTRICT No. 39 FISCAL YEAR 2015-16 MARCH 2015 PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, GOVERNMENT CODE AND ARTICLE XIIID OF THE CALIFORNIA CONSTITUTION ENGINEER OF WORK: SCIConsultingGroup 4745 MANGELSBOULEVARD FAIRFIELD, CALIFORNIA 94534 PHONE 707.430.4300 FAx 707.430.4319 WWW.SCI-CG.COM (THIS PAGE INTENTIONALLY LEFT BLANK) PAGE CITY OF DIAMOND BAR CITY COUNCIL Steve Tye, Mayor Nancy A. Lyons, Mayor Pro Tem Carol Herrera, Councilmember Jimmy Lin, Councilmember Jack Tanaka, Councilmember CITY MANAGER James DeStefano PUBLIC WORKS DIRECTOR/CITY ENGINEER David Liu COMMUNITY SERVICES DIRECTOR Bob Rose CITYATTORNEY David DeBerry ENGINEER OF WORK SCI Consulting Group CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT N0.39 SCIConsuitingGr®up ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE II (THIS PAGE INTENTIONALLY LEFT BLANK) CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 39 SC ICOnsultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE III TABLE OF CONTENTS INTRODUCTION...................................................................................................................... 5 OVERVIEW...................................................................................................................... 5 ENGINEERS REPORT AND CONTINUATION OF ASSESSMENTS .............................................. 5 LEGISLATIVE ANALYSIS.................................................................................................... 6 PLANS $ SPECIFICATIONS...................................................................................................... 9 FISCAL YEAR 2015-16 ESTIMATE OF COST AND BUDGET ....................................................... 11 BUDGET FOR FISCAL YEAR 2015-16............................................................................... 11 METHOD OF ASSESSMENT APPORTIONMENT..........................................................................13 METHOD OF APPORTIONMENT........................................................................................ 13 DISCUSSION OF BENEFIT................................................................................................ 13 SPECIAL BENEFIT.......................................................................................................... 14 GENERAL VERSUS SPECIAL BENEFIT.............................................................................. 16 BENEFIT FINDING........................................................................................................... 17 METHOD OF APPORTIONMENT........................................................................................ 20 ANNUAL ASSESSMENT CALCULATION.............................................................................. 21 DURATION OF ASSESSMENT........................................................................................... 21 APPEALS OF ASSESSMENTS LEVIED TO PROPERTY........................................................... 22 ASSESSMENT FUNDS MUST BE EXPENDED WITHIN THE DISTRICT AREA ............................. 22 ASSESSMENT...................................................................................................................... 23 ASSESSMENT DIAGRAM........................................................................................................ 25 ASSESSMENTROLL............................................................................................................. 27 CITY OF DIAMOND BAR No LANDSCAPING ASSESSMENT DISTRICT No. 39 SCIConsultingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE IV LIST OF TABLES TABLE 1 - FY 2015-16 ESTIMATE OF COSTS......................................................................... 11 TABLE 2 -FY 2015-16 SUMMARY COST ESTIMATE FOR LANDSCAPING ASSESSMENT DISTRICT N0. 39.............................................................................................................................. 23 CITY OF DIAMOND BAR p - LANDSCAPING ASSESSMENT DISTRICT No. 39 SC IC®nsultingGrnup ENGINEER'S REPORT, FISCALYEAR 2015-16 OVERVIEW The City of Diamond Bar (the "City") services and maintains mini -parks, slopes and open space areas and other improvements ("Improvements') in the Diamond Bar Hills area of the City. In order to fund the maintenance and operation ("Services") of these projects and improvements, Landscaping Assessment District No. 39 ('District") was formed in 1985 by the County of Los Angeles prior to the incorporation of the City of Diamond Bar, Upon incorporation in 1989, the City assumed jurisdiction over the District. This Engineer's Report ("Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the 2015-16 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the "Act") and Article XIIID of the California Constitution (the "Article"), ENGINEER'S REPORT AND CONTINUATION OF ASSESSMENTS The assessments have been continued for 30 years. In each subsequent year for which the assessments will be continued, the Diamond Bar City Council (the "Council") must direct the preparation of an Engineer's Report, budgets, and proposed assessments for the upcoming fiscal year. After the report is completed, the City Council may preliminarily approve the Engineer's Report and the continued assessments and establish the date for a public hearing on the continuation of the assessments. Accordingly, this Engineer's Report (the "Report") was prepared pursuant to the direction of the City Council. As required by the Act, this Report includes plans and specifications, a diagram or map of the District, the benefits received by property from the Improvements within the District, and the method of assessment apportionment to lots and parcels within the District. If the Council approves this Engineer's Report and the continuation of the Assessments by resolution, a notice of public hearing must be published in a local newspaper at least 10 days prior to the date of the public hearing. The resolution preliminarily approving the Engineer's Report and establishing the date for a public hearing is typically used for this notice. Following the minimum 10 -day time period after publishing the notice, a public hearing is held for the purpose of allowing public testimony about the proposed continuation of the Assessments. This hearing is currently scheduled for May 19, 2015. At this hearing, the Council will consider approval of a resolution confirming the continuation of the Assessments for fiscal year 2015-16. If so confirmed and approved, the Assessments would be submitted to the Los Angeles County Auditor/Controller for inclusion on the property tax rolls for fiscal year 2015-16. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 39 ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE Beginning in 2015, SCI Consulting Group became the Assessment Engineer for the District. To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer's reports has been retained herein and is cited in italics as appropriate. LEGISLATIVE ANALYSIS PROPOSITION 218 The Right to Vote on Taxes Act was approved by the voters of California on November 6, 1996, and is now Article XIIIC and XIIID of the California Constitution, Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services and improvements, as well as maintenance and operation expenses to a public improvement which benefits the assessed property. SILICON VALLEY TAXPAYERS ASSOCIATION, INC. V SANTA CLARA COUNTY OPEN SPACE AUTHORITY (2008) 44 CAL. 41H431 In July of 2008, the California Supreme Court issued its ruling on the Silicon Valley Taxpayers Association, Inc, v. Santa Clara County Open Space Authority (" SVTA"). This ruling is significant in that the Court clarified how Proposition 218 made changes to the determination of special benefit. The Court also found that: • Benefit assessments are for special, not general, benefit • The services and/or improvements funded by assessments must be clearly defined • Special benefits are directly received by and provide a direct advantage to property in the Improvement District • The assessment paid by property should be proportional to the special benefits it receives from the Improvements This Engineer's Report and the process used to establish the continuation of the assessments for fiscal year 2015-16 are consistent with the SVTA decision and with the requirements of Article XIIIC and XIIID of the California Constitution based on the following factors: The District is drawn to include the entire City; although only parcels deriving special benefits are included in the assessment rolls. Thus, zones of benefit are not required and the assessment revenue derived from real property in the District is expended only on the Improvements in the District. 2. The Improvements which are constructed and maintained with assessment proceeds in the District are located in close proximity to the real property subject to the assessment. The Improvements provide landscaping and other services to the residents of such assessed property. The proximity of the Improvements to the assessed parcels provides a special benefit to the parcel being assessed pursuant to the factors outlined by the Supreme Court in that decision. CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 39 SCkConsultlngGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 3. Due to their proximity to the assessed parcels, the Improvements financed with assessment revenues in the District benefit the properties in that District in a manner different in kind from the benefit that other parcels of real property in the City derive from such Improvements, and the benefits conferred on such property in the District are more extensive than a general increase in property values. 4. The assessments paid in the District are proportional to the special benefit that each parcel within that Assessment District receives from the Improvements because: a. The specific landscaping Improvements and maintenance and utility costs thereof in the District are specified in this Report; and b. Such Improvement and maintenance costs in the District are allocated among different types of property located within the District, and equally among those properties which have similar characteristics, such as single-family residential parcels, multi -family residential parcels, commercial parcels, industrial parcels, etc. DAHMS V. DOWNTOWN POMONA PROPERTY (2009) 174 CAL. APP. 4TH 708 In Dahms v. Downtown Pomona Property("DahmJ') the Court upheld an assessment that was 100% special benefit (i.e. 0% general benefit) on the rationale that the services and improvements funded by the assessments were directly provided to property in the assessment district. The Court also upheld discounts and exemptions from the assessment for certain properties. BONANDER V. TOWN OF TIBURON (2009) 180 CAL. APP. 4TH 103 Bonanderv. Town of Tiburon ("Bonanderl, the 1st District Court of Appeal overturned a benefit assessment approved by property owners to pay for placing overhead utility lines underground in an area of the Town of Tiburon. The Court invalidated the assessments primarily on the grounds that the assessments had been apportioned to assessed property based on the costs within sub -areas of the assessment district instead of the overall cost of the improvements and the overall proportional special benefits. BEUTZ V. COUNTY OF RIVERSIDE (2010) 184 CAL. APP. 4TH 1516 Steven Beutz v. County of Riverside ("BeutZ) the Court overturned an assessment for park maintenance in Wildomar, California, primarily because the general benefits associated with improvements and services were not explicitly calculated, quantified and separated from the special benefits. GOLDEN HILL NEIGHBORHOOD ASSOCIATION V. CITY OF SAN DIEGO (2011) 199 CAL, APP. 4TH 416 On September 22, 2011, the San Diego Court of Appeal issued a decision on the Golden Hill Neighborhood Association v. City of San Diego appeal. This decision overturned an assessment for street and landscaping maintenance in the Greater Golden Hill neighborhood of San Diego, California. The court described two primary reasons for its decision. First, like in Beutz, the court found the general benefits associated with services CIN OF DIAMOND BAR 108 LANDSCAPING ASSESSMENT DISTRICT No, 39 SC ICOnsultingGroup ENGINEER's REPORT, FISCAL YEAR 2015-16 PAGE were not explicitly calculated, quantified and separated from the special benefits. Second, the court found that the City had failed to record the basis for the assessment on its own parcels. COMPLIANCE WITH CURRENT LAW This Engineer's Report is consistent with the SVTA decision and with the requirements of Article XI IC and XI IID of the California Constitution because the Improvements to be funded are clearly defined; the benefiting property in the District enjoys close and unique proximity, access and views to the Improvements; the Improvements serve as an extension of usable land area for benefiting properties in the District and such special benefits provide a direct advantage to property in the District that is not enjoyed by the public at large or other property. This Engineer's Report is consistent with Beutz, Dahms and Greater Golden Hill because the Improvements will directly benefit property in the District and the general benefits have been explicitly calculated and quantified and excluded from the Assessments. The Engineer's Report is consistent with Bonander because the Assessments have been apportioned based on the overall cost of the Improvements and Services proportional special benefit to each property, rather than the proportional cost to the District to provide the Improvements to specific properties. CIN OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 39 F C rCon suttingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 9 PLANS & SPECIFICATIONS The City maintains landscaping and other improvements in locations within the District's boundaries. The work and improvements to be undertaken by Landscaping Assessment District No. 39, ("District"), and the cost thereof paid from the levy of the annual Assessment provide special benefit to Assessor Parcels within the District as defined in the Method of Assessment herein. In addition to the definitions provided by the Landscaping and Lighting Act of 1972 (the "Act"), the work and improvements are generally described as mini -parks, slopes and open space areas within the District. The Assessment Diagram shows the location and extent of the Improvements to be installed, maintained or serviced by the proceeds from this Assessment District. Installation, maintenance and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, sidewalks, parking lots, drainage systems, lighting, fencing, entry monuments, basketball courts, tennis courts, other recreational facilities, security patrols to protect the Improvements, graffiti removal and repainting, and labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District. As applied herein, "Installation" means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways and drainage, lights, playground equipment, play courts, playing fields, recreational facilities and public restrooms. "Maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including repair, removal or replacement of all or any part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste, and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. "Servicing" means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements; or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing CITY OF DIAMOND BAR OF LANDSCAPING ASSESSMENT DISTRICT No. 39 S rConsultingGroup ENGINEERS REPORT, FIsCALYEAR 2015-16 PAGE 10 of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (Streets & Highways Code §22526). Modifications to the District structure could include, but are not limited to, substantial changes or expansion of the Improvements provided, substantial changes in the service provided, modifications or restructuring of the District including annexation or detachment of specific parcels, revisions in the method of apportionment, or proposed new or increased assessments. The assessment proceeds will be exclusively used for Improvements within the District plus incidental expenses. CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 39 SC IICon sultengGroup ENGINEERS REPORT, FISCALYEAR 2015-16 PAGE 11 FISCAL YEAR 2015-16 ESTIMATE OF COST AND BUDGET BUDGET FOR FISCAL YEAR 2015-16 The 1972 Act provides that the total costs for providing the maintenance and servicing of the District Improvements and facilities can be recovered in the assessment spread including incidental expenses. The latter can include engineering fees, legal fees, printing, mailing, postage, publishing and all other costs identified with the District proceedings. An estimate of District costs for fiscal year 2015-16 for the maintenance and servicing of the Improvements is provided below. TABLE 1— FY 2015-16 ESTIMATE OF COSTS Expenditure Item Amount Salaries & Benefits $ 19,395 Operating Expenses Advertising 5,000 Utilities 90,500 Maintenance of Grounds/Buildings 17,100 Professional Services 5,500 Contract Services Landscape Maintenance 142,200 Tree Maintenance 5,300 Weed/Pest Abatement 17,000 Capital Improvements 0 Reserve for Future Capital Improvements 0 Estimated Expenditures $ 301,995 Revenue Item Amount Direct Benefit Assessments FY 2015/16 $ 295,236 General Fund Contribution 6,759 Estimated Revenues $ 301,995 Budget Allocation to Parcels Amount Total Assessment BudgetA $ 295,236 Total Assessable Parcels 1,251 Assessment per Parcel $ 236.00 CITY OF DIAMOND BAR so LANDSCAPING ASSESSMENT DISTRICT No. 39 SC tCon sultingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 12 Notes to Estimate of Costs: A. The Act requires that proceeds from the assessments must be deposited into a special fund that has been set up for the revenues and expenditures of the District. Moreover, funds raised by the assessment shall be used only for the purposes stated within this Report. Any balance remaining at the end of the Fiscal Year, June 30, must be carried over to the next Fiscal Year. The District may also establish a reserve fund for contingencies and special projects as well as a capital improvement fund far accumulating funds for larger capital improvement projects or capital renovation needs. Any remaining balance would either be placed in the reserve fund, the capital improvement fund, or would be used to reduce future years' assessments. CITY OF DIAMOND BAR go LANDSCAPING ASSESSMENT DISTRICT No. 39 CIiConssuCt6ngGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 13 METHOD OF ASSESSMENT APPORTIONMENT METHOD OF APPORTIONMENT This section of the Engineer's Report explains the benefits to be derived from the Improvements and the methodology used to apportion the total assessment to properties within the District. The District consists of certain assessor parcels within the boundaries as defined by the Assessment Diagram referenced in this report and the parcels identified by the Assessor Parcel Numbers listed with the levy roll. The parcel list includes all privately and publically owned parcels as shown. The method used for apportioning the Assessment is based upon the relative special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The Assessment is apportioned to lots and parcels in proportion to the relative special benefit from the Improvements. The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the Improvements and the second step is to allocate the Assessments to property based on the estimated relative special benefit for each type of property. DISCUSSION OF BENEFIT In summary, the Assessments can only be levied based on the special benefit to property. This benefit is received by property over and above any general benefits. With reference to the requirements for assessments, Section 22573 of the Landscaping and Lighting Act of 1972 states: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that assessments must be based on the special benefit to property and that the value of the special benefits must exceed the cost of the assessment: No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benedt conferred on thatparcel " The following benefit categories summarize the types of special benefit to residential, commercial, industrial and other lots and parcels resulting from the Improvements to be provided with the assessment proceeds. These types of special benefit are summarized as follows: CIN OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 39 SC €ConsultingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 14 A. Proximity to Improved Landscaped Areas and Other Public Improvements within the District. B. Access to Improved landscaped areas and Other Public Improvements within the District. C. Improved Views within the District. D. Extension of a property's outdoor areas and green spaces for properties within close proximity to the Improvements. E. Safety and Security within the District F. Creation of individual lots for residential and commercial use that, in absence of the Assessments, would not have been created. In this case, the recent SVTA v. SCCOSA decision provides enhanced clarity to the definitions of special benefits to properties from similar improvements in three distinct areas: • Proximity • Expanded or improved access • Views The SVTA v. SCCOSA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA v. SCCOSA decision also provides specific guidance that park improvements are a direct advantage and special benefit to property that is proximate to a park that is improved by an assessment: The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g general enhancement of the district's property values). Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments. Moreover, the Dahms decision further clarified that certain services and improvements funded by assessments, that are over and above what otherwise would be provided and that other property in general and the public do not share or receive are 100% special benefit. The assessment -funded services upheld by Dahms included streetscape maintenance and security services. SPECIAL BENEFIT The District was formed by a different engineer of record. From the original Engineer's Report, the primary special benefits on landscaping are as set forth below: GIN OF DIAMOND BAR so LANDSCAPING ASSESSMENT DISTRICT No. 39 SMConsultingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 15 9. Beautification of the streets which are used by all of the residents in Diamond Bar 2. A sense of community pride resulting from well-maintained green spaces. 3. The enhancement of the value ofproperty which results from the foregoing benefits. 4. The enhancement of the value of propeity which results from the foregoing benefits. I In addition, SCI assessment engineers have identified the following special benefits: PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share. In absence of the Assessments, the Improvements would not be provided and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair. Therefore, the Assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District. ACCESS TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Since the parcels in the District are nearly the only parcels that enjoy close access to the Improvements, they directly benefit from the unique close access to improved landscaping areas and other public improvements that are provided by the Assessments. This is a direct advantage and special benefit to property in the District. IMPROVED VIEWS WITHIN THE ASSESSMENT DISTRICT The City, by maintaining permanent public improvements funded by the Assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the Assessments are another direct and tangible advantage that is uniquely conferred upon property in the District. From the Engineer's Report, Update of Assessment District No. 39, Fiscal Year 2014-15, City of Diamond Bar, dated June 3, 2014 CITY OF DIAMOND BAR am_ -- LANDSCAPING ASSESSMENT DISTRICT No. 39 SC:ICon sultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 16 EXTENSION OF A PROPERTY'S OUTDOORAREAS AND GREEN SPACES FOR PROPERTIES WITHIN CLOSE PROXIMITY TO THE IMPROVEMENTS In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial and other benefiting properties in the District do not have large outdoor areas and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements. SAFETYAND SECURITY WITHIN THE ASSESSMENT DISTRICT The City, through proper installation, maintenance and servicing of permanent public improvements funded by the Assessments in the District, provides increased security and safety by preventing crime and suppressing fire. For parks and recreation Improvements, proper lighting and well -kept landscapes help to deter crime and vandalism. Other landscaped area activities such as slope maintenance and brush clearing provide critical fire suppression. CREATION OF INDIVIDUAL LOTS FOR RESIDENTIAL AND COMMERCIAL USE THAT, IN ABSENCE OF THE ASSESSMENTS, WOULD NOT HAVE BEEN CREATED In most of the District, the original owner/developer(s) of the property within the District agreed unanimously to the Assessments. The Assessments provide the necessary funding for public improvements that were required as a condition of development and subdivision approval. Therefore, such Assessments allowed the original property to be subdivided and for development of the parcels to occur. As parcels were sold, new owners were informed of the Assessments through the title reports, and in some cases, through Department of Real Estate "White Paper" reports that the parcels were subject to assessment. Purchase of property was also an "agreement" to pay the Assessment. Therefore, in absence of the Assessments, the lots within most of the District would not have been created. These parcels, and the improvements that were constructed on the parcels, receive direct advantage and special benefit from the Assessments. GENERAL VERSUS SPECIAL BENEFIT Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to "separate the general benefits from the special benefits conferred on a parcel." The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section. In other words: CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 39 SCIC onsultingGroup ENGINEER'S REPORT, FISCALYEAR 2015-16 PAGE 17 Total _ General Special Benefit — Benefit + Benefit There is no widely -accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not "particular and distinct" and are not "over and above" benefits received by other properties. SVTA vs. SCCOSA provides some clarification by indicating that general benefits provide "an indirect, derivative advantage" and are not necessarily proximate to the improvements. In this Report, the general benefit is liberally estimated and described, and then budgeted so that it is funded by sources other than the Assessment. The starting point for evaluating general and special benefits is the current, baseline level of service. The Assessment will fund Improvements "over and above" this general, baseline level and the general benefits estimated in this section are over and above the baseline. A formula to estimate the general benefit is listed below: Benefit to Real Benefit to Real General Property Outside Property Inside the Benefit to Benefit – the Assessment + Assessment District + the Public District that is Indirect and at Large Derivative Special benefit, on the other hand, is defined in the state constitution as "a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large." The SVTA v. SCCOSA decision indicates that a special benefit is conferred to a property if it "receives a direct advantage from the improvement (e.g., proximity to a park)." In these Assessments, as noted, properties in the District have close and unique proximity, views and access to the Improvements and uniquely improved desirability from the Improvements and other properties and the public at large do not receive significant benefits because they do not have proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special, and is only minimally received by property outside the Districts or the public at large. BENEFIT FINDING QUANTIFICATION OF GENERAL BENEFIT In this section, the general benefit from landscaping and other types of Improvements is liberally estimated and described, and then budgeted so that it is funded by sources other than the Assessment. CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT N0.39 S IConsultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 18 BENEFIT TO PROPERTY OUTSIDE THE ASSESSMENT DISTRICTS Properties within the District receive almost all of the special benefits from the Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large. However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the Assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis performed by SCI Consulting Group. Since certain properties outside the District enjoy close proximity and access to the Improvements cannot be assessed by the District, this is a form of general benefit to other property. There are eight parcels outside the District that lie within a half mile travel distance of one of mini -parks within the District. In addition, there are 79 parcels outside the District that are directly adjacent to areas where brush clearing activity is performed by the District. The benefits conferred to these properties do not include the Lot Creation benefit factor, therefore the benefit is reduced by half. The general benefit to property outside of the District is calculated as follows. ASSUMPTIONS: ® 87 parcels outside the District 1,251 parcels in the District ® 50% Benefit Factor CALCULATION: General Benefit to property outside the District = 87/(87+1,251) x 50% = 3.25% BENEFIT TO PROPERTY INSIDETHE ASSESSMENT DISTRICTS THAT IS INDIRECTAND DERIVATIVE The "indirect and derivative" benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly "over and above" and "particular and distinct" when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District. Nevertheless, the SVTA vs. SCCOSA decision indicates there may be general benefit "conferred on real property located in the district" A measure of the general benefits to property within the Assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as regional parks, major roads, rail lines and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. Approximately 1.51 % of the land area in the District is used for such regional purposes, so this is a measure of the general benefits to property within the District. CITY OF DIAMOND BAR No - LANDSCAPING ASSESSMENT DISTRICT N0.39 SC:ConsultingGr®up ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 19 BENEFIT TO THE PUBLIC AT LARGE The general benefit to the public at large can be estimated by the proportionate amount of time that the District's Improvements are used and enjoyed by individuals who are not residents, employees, customers or property owners in the District. There are two ways in which the public at large can enjoy the improvements, with each counting for half of the general benefit: use of parks, and pass -by trips where landscaped areas can be viewed. In the case of the mini -parks that serve primarily the neighborhood, City staff estimate that approximately 10% of the users do not live, work or own property in the District. The general landscape improvements are typically along slopes and open space areas, out of view of the general public; no general benefit is conferred for views of landscaping. Finally, the general benefits conferred to the public at large does not include the benefit of lot creation, so this benefit is further reduced by half. Therefore we find that ((50% of 10%) x 50% _) 2.50% of the benefits from the Improvements are general benefits to the public at large. TOTAL GENERAL BENEFITS Using a sum of these three measures of general benefit, we find that approximately 7.26% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment. LANDSCAPING GENERAL BENEFIT CALCULATION 3.25% (Outside the District) + 1.51% (Property within the District) + 2.50% (Public at Large) = 7.26% (Total General Benefit) Although this analysis finds that 7.26% of the assessment may provide general benefits from the Improvements, the Assessment Engineer establishes a requirement for a minimum contribution from sources other than the assessments of 8%. This minimum contribution above the measure of general benefits will serve to provide additional coverage for any other general benefits. CURRENT GENERAL BENEFIT CONTRIBUTION FROM THE CITY This general benefit cannot be funded from the Assessments; it must be funded from other sources such as the City's General Fund or other non -District funds. These contributions can also be in the form of in -lieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City of Diamond Bar will contribute both monetary and in -lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the District's Assessments. A summary and quantification of these other contributions from the City is discussed below: CIN OF DIAMOND BAR ow LANDSCAPING ASSESSMENT DISTRICT No. 39 S0ConsultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 20 The City of Diamond Bar owns, maintains, rehabilitates and replaces curb and putter along the border of the District Improvements. This curb and gutter serves to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements. The contribution from the City towards general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 5%. The City owns and maintains a storm drainage system along the border of the District Improvements. This system serves to prevent flooding and associated damage to the Improvements, and manage urban runoff including local pollutants loading from the Improvements. The contribution from the City towards general benefit from the maintenance, and operation of the local storm drainage system is conservatively estimated to be 5%. The City owns and maintains local public streets along the border of the District Improvements. These public streets provide access to the Improvements for its enjoyment as well as efficient maintenance. The contribution from the City towards general benefit from the maintenance of local public streets is conservatively estimated to be 5%. The value of the construction of the improvements can be quantified and monetized as an annuity. Since this construction was performed and paid for by non -assessment funds, this "annuity" can be used to offset general benefit costs, and is conservatively estimated to contribute 10%. The total General Benefit is liberally quantified at 8% which is entirely offset by the conservatively quantified total non -assessment contribution towards general benefit described above of 25%. Therefore, no additional General Benefit must be funded by the City. METHOD OF APPORTIONMENT The development of an Assessment methodology requires apportioning to determine the relative special benefit for each property. As the District was formed by a different engineer of record, the precise language from the most recent Engineer's Report is included below: The net amount to be assessed upon lands within the District in accordance with this report is apportioned by a formula and method which fairly distributes the amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each lot or parcel from the Improvements, namely the maintenance and servicing ofpublic landscaping improvements within such District. The maintenance and servicing of public landscaping improvements installed and constructed in public places in the City of Diamond Bar provides a special benefit which is received by each and every lot or parcel within the District, tending to enhance their value. The primarybeneAls on landscaping are as set forth below CIN OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 39 S IfConsultingGroup ENGINEERS REPORT, FISCALYEAR 2015-16 PAGE 21 9. Beautification of the streets which are used by all of the residents in Diamond Bar. 2. Public parks which can be utilized and enjoyed by all residents within the District. 3. A sense of community pride resulting from well-maintained green spaces. 4. The enhancement of the value of property which results from the foregoing benefits. The existing land use information indicates that all of the parcels within the District are residences. Because the special benefits derived apply equally to all residents and parcels, it has been determined that all assessable parcels would receive the same net assessment.2 ANNUAL ASSESSMENT CALCULATION For fiscal year 2015-16 the amount of Assessments for the District is estimated to be $236.00. While this is an increase, it is not higher than the original assessment set at the time of the 1985 District formation, which assessment was approved by and pursuant to a petition signed by the property owners who owned all of the parcels at the time the District was formed. Pursuant to the Landscaping and Lighting Act of 1972 as amended in 2000 to conform to Articles XIIIC and XIIID of the California Constitution, a majority protest process is required for any annual assessment that is increased from any previous year as defined in Government Code Section 54954.6. Subsection 54954.6(a) (1) (C) provides that the term "new or increased assessment" does not include "an ongoing annual assessment if it is imposed at the same or lower amount as any previous year." Because the assessment is being imposed in the same amount as in a previous year, it is not subject to the majority protest procedure. In addition, Article XIIID, section 5, of the California Constitution, exempts from the majority protest procedure any assessment which was imposed pursuant to a petition signed by persons owning all of the parcels subject to the assessment at the time the assessment was initially imposed. The $236 per parcel assessment was imposed pursuant to such a petition when the District was first formed and assessments were initially imposed DURATION OF ASSESSMENT The District was formed or annexed in previous years. It is proposed that the Assessments be continued every year after their formation or annexation, so long as the public Improvements need to be maintained and improved, and the City requires funding from the Assessments for these Improvements in the District. As noted previously, the Assessment can continue to be levied annually after the City Council approves an annually updated Engineer's Report, budget for the Assessment, Improvements to be provided, and other specifics of the Assessment. In addition, the City Council must hold an annual public hearing to continue the Assessment. 2 From the Engineer's Report, Update of Assessment District No. 39, Fiscal Year 2014-15, City of Diamond Bar, dated June 3, 2014 CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 39 SC tCon sultingGroupl ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 22 APPEALS OF ASSESSMENTS LEVIED TO PROPERTY Any property owner who feels that the Assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the City of Diamond Bar City Administrator or his or her designee. Any such appeal is limited to correction of an Assessment during the then -current Fiscal Year and applicable law. Upon the filing of any such appeal, the City Administrator or his or her designee will promptly review the appeal and any information provided by the property owner. If the City Administrator or his or her designee finds that the Assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Administrator or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the City Administrator or his or her designee shall be referred to the Diamond Bar City Council, and the decision of the City Council shall be final. ASSESSMENT FUNDS MUST BE EXPENDED WITHIN THE DISTRICT AREA The net available Assessment funds, after incidental, administrative, financing and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section. CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT N0. 39 .1;CIConsultingGroup ENGINEER'S REPORT, FISCALYEAR2015-16 ASSESSMENT PAGE23 WHEREAS, the City of Diamond Bar directed the undersigned engineer of Work to prepare and file a report presenting an estimate of costs, a Diagram for the District and an assessment of the estimated costs of the Improvements upon all assessable parcels within the. District; Now, THEREFORE, the undersigned, by virtue of the power vested in me under the Act, Article XIIID of the California Constitution, and the order of the City of Diamond Bar City Council, hereby makes the following Assessment to cover the portion of the estimated cost of the Improvements, and the costs and expenses incidental thereto to be paid by the District. The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the District for the Fiscal Year 2015-16 is generally as follows: TABLE 2— FY 2015-16 SUMMARY COST ESTIMATE FOR LANDSCAPING ASSESSMENT DISTRICT N0.39 Salaries & Benefits $ 19,395 Operating Expenses & Services 282,600 Capital Expenses 0 Total for Services $ 301,995 Less General Fund Contribution (6,759) Less Other Revenue 0 Net Amount to Assessments $ 295,236 As required by the Act, an Assessment Diagram of the District is hereto attached and incorporated herein by reference. The distinctive number of each parcel or lot of land in the District is its Assessor Parcel Number appearing on the Assessment Roll. I do hereby assess and apportion the net amount of the cost and expenses of the Improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within the District, in accordance with the special benefits to be received by each parcel or lot, from the Improvements, and more particularly set forth in the Estimate of Cost and Method of Assessment in the Report. The Assessment is made upon the parcels or lots of land within the District in proportion to the special benefits to be received by the parcels or lots of land, from the Improvements. CITY OF DIAMOND BAR - LANDSCAPING ASSESSMENT DISTRICT N0.39 -'C 4Con SultingGroup ENGINEER'S REPORT, FISCALYEAR 2015-16 PACE 24 Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the County of Los Angeles for the Fiscal Year 2015-16. For a more particular description of the property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of the County. I hereby will place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the Fiscal Year 2015-16 for each parcel or lot of land within the District. Dated: March 26, 2015 OQFtOFESS/n W. B��s�F2c W C 52091 m By * EXP. 12-31-16 S'T,q CIVI\- �a3 OF CAl\FO CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT N0.39 ENGINEER'S REPORT, FISCAL YEAR 2015-16 Engineer of Work E - Bliss, License No. C052091 PAGE25 ASSESSMENT DIAGRAM The District boundary and the parcels to be assessed in Landscaping Assessment District No. 39 are shown on the Assessment Diagram, which is on file with the City Clerk of the City of Diamond Bar, and includes all those properties included in the original formation of the District and subsequent annexations. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions as shown on the maps of the Assessor of the County of Los Angeles, for Fiscal Year 2015-16, and are incorporated herein by reference, and made a part of this Diagram and this Report. GIN OF DIAMOND BARmw— LANDSCAPING ASSESSMENT DISTRICT No. 39 SC= ConsultingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 Q X w_ x � � y yo C N� Q w_ PAGE27 ASSESSMENT ROLL An Assessment Roll (a listing of all parcels assessed within the District and the amount of the Assessment) will be filed with the City Clerk and is, by reference, made part of this Report and is available for public inspection during normal office hours at the City Hall at 21810 Copley Drive, 2nd floor, Diamond Bar, California 91765. Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County Assessor records and these records are, by reference, made part of this Report. These records shall govern for all details concerning the description of the lots or parcels. CITY OF DIAMOND BAR -- LANDSCAPING ASSESSMENT DISTRICT N0.39 SCuCcrnsultingGroup ENGINEER'S REPORT, FISCALYEAR 2015-16 CITY COUNCIL Agenda # 6 . 12 Lc)— Meeting c)Meeting Date: April 7 2015 AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: James DeStefano, City Manaer TITLE: RESOLUTION OF THE CITY IUN.,L OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 41 AND DIRECT THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING TO BE SET FOR THE MAY 19, 2015 REGULAR MEETING. RECOMMENDATION: Approve. FINANCIAL SUMMARY: As shown on the attached Engineer's Report, $122,157 of assessment generated by this District, $5,000 of Prop A Funds and $87,672 of General Funds are proposed to pay for the operation and maintenance costs budgeted in special fund No. 141. BACKGROUNDMISCUSSION: The attached Engineer's Report for the City's Landscaping Assessment District Number 41, which is prepared pursuant to provisions of the Landscaping and Lighting Act of 1972 of Part 2 of Division 15 of the Streets and Highways Code of the State of California, includes authority for the report, estimated costs of improvements, a diagram for the District and the assessments. The estimated number of parcels within the District is 554 parcels. The amount assessed upon the lands within District Number 41 for Fiscal Year 2014-2015 was $220.50 per parcel. The amount to be assessed for Fiscal Year 2015-2016 is to remain at $220.50 per parcel. The assessments will be utilized towards the general maintenance of mini parks, slopes, and open space areas within District 41. The proposed assessment has been determined to be exempt from the provisions of Proposition 218 as set forth in section 5 (b): Any assessment imposed pursuant to a petition signed by the persons owning all of the parcels subject to the assessment at the time the assessment is initially imposed. Prepared By: David G. Liu Director of Public Works Attachments: Resolution No. 2015 -XX Exhibits A-3, B-3 Engineer's Report, dated March 2015 K RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 41 AND DIRECT THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE MAY 19, 2015 REGULAR MEETING. A. RECITALS. (i) Heretofore the City of Diamond Bar Assessment District No. 41 was created pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§§ 22500, et. seq.). (ii) SCI Consulting Group, the Engineer or Work, has prepared, filed with the City Clerk and presented to this Council a report relating to said assessment district pursuant to the provisions of the California Streets and Highways Code § 22623. (iii) No substantial changes in existing improvements are proposed for said Assessment District No. 41. (iv) All legal prerequisites to the adoption of this Resolution have occurred. B. RESOLUTION. NOW, THEREFORE, THE City Council of the City of Diamond Bar does hereby find, determine and resolve as follows: 1. The Recitals as set forth in Part A of this Resolution, are in all respects true and correct. 2. The above-described report submitted by the Engineer of Work relating to City of Diamond Bar Assessment District No. 41 is hereby approved as filed. 3. This Council hereby declares its intention to levy and collect assessments during fiscal year 2015-16 pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, known as the "Landscaping and Lighting Act of 1972," within that area designated "City of Diamond Bar Assessment District No. 41," as shown on Exhibit "A-3" attached hereto and incorporated herein by reference. 1 4. A general description of the improvements proposed for the aforementioned district is as follows: The maintenance and servicing of landscaping and any facilities which are appurtenant thereto or which are necessary or convenient for the maintenance and servicing thereof, including but not limited to, repair, removal or replacement, grading, clearing, removal of debris, pruning, fertilization, pest control and weed control, and the installation or construction of appurtenant facilities, including curbs, gutters, walls, sidewalks or paving, or water, irrigation, drainage, or electrical facilities. Said maintenance and servicing of the landscaping and installation, maintenance and servicing of related work shall be within the area of Assessment District No. 41 as shown on Exhibit "A-3." The location and type of improvement is shown on Exhibit "B-3," as attached hereto and incorporated herein by reference." 5. Reference is hereby made to the report of the City Engineer relating to the said assessment district hereinabove approved. Said report is on file with the City Clerk of the City of Diamond Bar and contains a full and detailed description of the improvements, the boundaries of the assessment district and contains the proposed assessments upon assessable lots and parcels of land within City of Diamond Bar Assessment District No. 41 for fiscal year 2015-16. Said proposed assessment per lot is the amount of $220.50, the same amount which was levied in fiscal year 2014-15. 6. This Council hereby fixes 6:45 p.m. on May 19, 2015 in the Auditorium located at the AQMD/Government Center, 21865 Copley Drive, Diamond Bar, California, as the time and place for a hearing before this Council on this question of the levy of the proposed assessments on assessable lots with City of Diamond Bar Assessment District No. 41 for fiscal year 2015-16 and hereby gives notice of said hearing. 2 7. The City Council hereby determines and declares that the proposed assessments constitute a continuation of assessments existing on the effective date of Article XIIID of the California Constitution, that the assessments are imposed pursuant to a petition signed by the persons owning all of the parcels subject to the assessment at the time the assessment was initially imposed and that the assessments are exempt from the requirements of Article XIIID, Section 4 of the California Constitution. 8. The City Clerk shall: (a) Certify to the adoption of this Resolution; and (b) Cause a true and correct copy of this Resolution to be published pursuant to California Government Code § 6061. PASSED, ADOPTED AND APPROVED this 7th day of April, 2015. Steve Tye Mayor I, TOMMYE CRIBBINS, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on the 7th day of April, 2015, by the following Roll Call vote: AYES: NOES: ABSENT: ABSTAINED: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: ATTEST: Tommy Cribbins, City Clerk City of Diamond Bar 3 EXHIBIT °A-3` SHEEP 7 OF 1 SHEET ASSESSMENT DIAGRAM ASSESSMENT DISTRICT N0. 41 FISCAL YEAR 2015-2016 FOR THE CITY OF DIAMOND BAR V X111 � 19 �xr v�1N�IM �lnv SHEET 1 OF 1 SHEET EXHIBIT "B-3" ASSESSMENT DISTRICT N0. 41 FISCAL YEAR 2015-2016 FOR THE CITY OF DIAMOND BAR amexo 11 LANDSCAPING ASSESSMENT DISTRICT No. 41 • FISCAL YEAR 2015-16 MARCH 2015 PURSUANTTO THE LANDSCAPING AND LIGHTING ACT OF 1972, GOVERNMENT CODE AND ARTICLE x111D OF THE CALIFORNIA CONSTITUTION ENGINEER OF WORK: SCIonsulting roup 4745 IVIANGELS BOULEVARD FAIRFIELD, CALIFORNIA 94534 PHONE 707.430.4300 FAx 707.430.4319 W W W.SCI-CG.COM (THIS PAGE INTENTIONALLY LEFT BLANK) PAGE CITY OF DIAMOND BAR CITY COUNCIL Steve Tye, Mayor Nancy A. Lyons, Mayor Pro Tem Carol Herrera, Councilmember Jimmy Lin, Councilmember Jack Tanaka, Councilmember CITY MANAGER James DeStefano PUBLIC WORKS DIRECTOR/ CITY ENGINEER David Liu COMMUNITY SERVICES DIRECTOR Bob Rose CITY ATTORNEY David DeBerry ENGINEER OF WORK SCI Consulting Group CITY OF DIAMOND BAR so LANDSCAPING ASSESSMENT DISTRICT N0.41 S IConsultingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE II THIS PAGE INTENTIONALLY LEFT BLANK) CIN OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT N0.41 S &ConsultingGroup ENGINEERS REPORT, FISCALYEAR 2015-16 PAGE III TABLE OF CONTENTS INTRODUCTION...................................................................................................................... 5 OVERVIEW...................................................................................................................... 5 ENGINEERS REPORT AND CONTINUATION OF ASSESSMENTS .............................................. 5 LEGISLATIVE ANALYSIS.................................................................................................... 6 PLANS & SPECIFICATIONS...................................................................................................... 9 FISCAL YEAR 2015-16 ESTIMATE OF COST AND BUDGET ....................................................... 11 BUDGET FOR FISCAL YEAR 2015-16............................................................................... 11 METHOD OF ASSESSMENT APPORTIONMENT..........................................................................13 METHOD OF APPORTIONMENT........................................................................................ 13 DISCUSSION OF BENEFIT................................................................................................ 13 SPECIALBENEFIT.......................................................................................................... 14 GENERAL VERSUS SPECIAL BENEFIT... ........... ........ .......................................... ........... 16 BENEFITFINDING........................................................................................................... 17 METHOD OF APPORTIONMENT........................................................................................ 20 ANNUAL ASSESSMENT CALCULATION.............................................................................. 21 DURATION OF ASSESSMENT........................................................................................... 21 APPEALS OF ASSESSMENTS LEVIED TO PROPERTY........................................................... 21 ASSESSMENT FUNDS MUST BE EXPENDED WITHIN THE DISTRICT AREA ............................. 22 ASSESSMENT...................................................................................................................... 23 ASSESSMENTDIAGRAM........................................................................................................ 25 ASSESSMENTROLL............................................................................................................. 27 CITY OF DIAMOND BAR so' - LANDSCAPING ASSESSMENT DISTRICT N0.41 SC 9ConsultingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE IV LIST OF TABLES TABLE 1 - FY 2015-16 ESTIMATE OF COSTS......................................................................... 11 TABLE 2 - FY 2015-16 SUMMARY COST ESTIMATE FOR LANDSCAPING ASSESSMENT DISTRICT N0. 41.............................................................................................................................. 23 CITY OF DIAMOND BAR mm -- LANDSCAPING ASSESSMENT DISTRICT No. 41 SCiConsultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 OVERVIEW The City of Diamond Bar (the "City") services and maintains mini -parks, slopes and open space areas and other improvements ("Improvements") in the Diamond Bar High Country area of the City. In order to fund the maintenance and operation ("Services") of these projects and improvements, Landscaping Assessment District No. 41 ("District") was formed in 1985 by the County of Los Angeles prior to the incorporation of the City of Diamond Bar. Upon incorporation in 1989, the City assumed jurisdiction over the District. This Engineer's Report ("Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the 2015-16 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the "Act") and Article XIIID of the California Constitution (the "Article"), ENGINEER'S REPORT AND CONTINUATION OF ASSESSMENTS The assessments have been continued for 30 years. In each subsequent year for which the assessments will be continued, the Diamond Bar City Council (the "Council") must direct the preparation of an Engineer's Report, budgets, and proposed assessments for the upcoming fiscal year. After the report is completed, the City Council may preliminarily approve the Engineer's Report and the continued assessments and establish the date for a public hearing on the continuation of the assessments. Accordingly, this Engineer's Report (the "Report") was prepared pursuant to the direction of the City Council. As required by the Act, this Report includes plans and specifications, a diagram or map of the District, the benefits received by property from the Improvements within the District, and the method of assessment apportionment to lots and parcels within the District. If the Council approves this Engineer's Report and the continuation of the Assessments by resolution, a notice of public hearing must be published in a local newspaper at least 10 days prior to the date of the public hearing. The resolution preliminarily approving the Engineer's Report and establishing the date for a public hearing is typically used for this notice. Following the minimum 10 -day time period after publishing the notice, a public hearing is held for the purpose of allowing public testimony about the proposed continuation of the Assessments. This hearing is currently scheduled for May 19, 2015. At this hearing, the Council will consider approval of a resolution confirming the continuation of the Assessments for fiscal year 2015-16. If so confirmed and approved, the Assessments would be submitted to the Los Angeles County Auditor/Controller for inclusion on the property tax rolls for fiscal year 2015-16. CITY OF DIAMOND BAR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT No. 41 SCIC®nsultingGroup ENGINEER'S REPORT, FISCALYEAR 2015-16 PAGE Beginning in 2015, SCI Consulting Group became the Assessment Engineer for the District. To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer's reports has been retained herein and is cited in italics as appropriate. LEGISLATIVE ANALYSIS PROPOSITION 218 The Right to Vote on Taxes Act was approved by the voters of California on November 6, 1996, and is now Article XIIIC and XIIID of the California Constitution, Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services and improvements, as well as maintenance and operation expenses to a public improvement which benefits the assessed property. SILICON VALLEY TAXPAYERS ASSOCIATION, INC. V SANTA CLARA COUNTY OPEN SPACE AUTHORITY (2008) 44 CAL. 4T1431 In July of 2008, the California Supreme Court issued its ruling on the Silicon Valley Taxpayers Association, Inc, u. Santa Clara County Open Space Authority ("SVTA"). This ruling is significant in that the Court clarified how Proposition 218 made changes to the determination of special benefit. The Court also found that: • Benefit assessments are for special, not general, benefit • The services and/or improvements funded by assessments must be clearly defined • Special benefits are directly received by and provide a direct advantage to property in the Improvement District • The assessment paid by property should be proportional to the special benefits it receives from the Improvements This Engineer's Report and the process used to establish the continuation of the assessments for fiscal year 2015-16 are consistent with the SVTA decision and with the requirements of Article XIIIC and XIIID of the California Constitution based on the following factors: The District is drawn to include the entire City; although only parcels deriving special benefits are included in the assessment rolls. Thus, zones of benefit are not required and the assessment revenue derived from real property in the District is expended only on the Improvements in the District. 2. The Improvements which are constructed and maintained with assessment proceeds in the District are located in close proximity to the real property subject to the assessment. The Improvements provide landscaping and other services to the residents of such assessed property. The proximity of the Improvements to the assessed parcels provides a special benefit to the parcel being assessed pursuant to the factors outlined by the Supreme Court in that decision. CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 41 C [ ConsultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE Due to their proximity to the assessed parcels, the Improvements financed with assessment revenues in the District benefit the properties in that District in a manner different in kind from the benefit that other parcels of real property in the City derive from such Improvements, and the benefits conferred on such property in the District are more extensive than a general increase in property values. 4. The assessments paid in the District are proportional to the special benefit that each parcel within that Assessment District receives from the Improvements because: a. The specific landscaping Improvements and maintenance and utility costs thereof in the District are specified in this Report; and b. Such Improvement and maintenance costs in the District are allocated among different types of property located within the District, and equally among those properties which have similar characteristics, such as single-family residential parcels, multi -family residential parcels, commercial parcels, industrial parcels, etc. DAHMS V. DOWNTOWN POMONA PROPERTY (2009) 174 CAL. APP. 4TH 708 In Dahms v. Downtown Pomona Property("Dahms") the Court upheld an assessment that was 100% special benefit (i.e. 0% general benefit) on the rationale that the services and improvements funded by the assessments were directly provided to property in the assessment district. The Court also upheld discounts and exemptions from the assessment for certain properties. BONANDER V. TOWN OF TIBURON (2009) 180 CAL. APP. 4TH 103 Bonanderv. Town of Tiburon ("Bonanderl, the 1st District Court of Appeal overturned a benefit assessment approved by property owners to pay for placing overhead utility lines underground in an area of the Town of Tiburon. The Court invalidated the assessments primarily on the grounds that the assessments had been apportioned to assessed property based on the costs within sub -areas of the assessment district instead of the overall cost of the improvements and the overall proportional special benefits. BEUTZ V. COUNTY OF RIVERSIDE (2010)184 CAL APP, 4TH 1516 Steven Beutz v. County of Riverside ("BeutZ) the Court overturned an assessment for park maintenance in Wildomar, California, primarily because the general benefits associated with improvements and services were not explicitly calculated, quantified and separated from the special benefits. GOLDEN HILL NEIGHBORHOOD ASSOCIATION V. CITY OF SAN DIEGO (2011) 199 CAL. APP. 4TH 416 On September 22, 2011, the San Diego Court of Appeal issued a decision on the Golden Hill Neighborhood Association v. City of San Diego appeal. This decision overturned an assessment for street and landscaping maintenance in the Greater Golden Hill neighborhood of San Diego, California. The court described two primary reasons for its decision. First, like in Beutz, the court found the general benefits associated with services CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 41 S0ConsultinqGroup ENGINEERS REPORT, FISCALYEAR 2015-16 PAGE were not explicitly calculated, quantified and separated from the special benefits. Second, the court found that the City had failed to record the basis for the assessment on its own parcels. COMPLIANCE WITH CURRENT LAW This Engineer's Report is consistent with the SVTA decision and with the requirements of Article XI IIC and MID of the California Constitution because the Improvements to be funded are clearly defined; the benefiting property in the District enjoys close and unique proximity, access and views to the Improvements; the Improvements serve as an extension of usable land area for benefiting properties in the District and such special benefits provide a direct advantage to property in the District that is not enjoyed by the public at large or other property. This Engineer's Report is consistent with Beutz, Dahms and Greater Golden Hitt because the Improvements will directly benefit property in the District and the general benefits have been explicitly calculated and quantified and excluded from the Assessments. The Engineer's Report is consistent with Bonander because the Assessments have been apportioned based on the overall cost of the Improvements and Services proportional special benefit to each property, rather than the proportional cost to the District to provide the Improvements to specific properties. CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT N0.41 % rConsurtingGYoup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 9 PLANS & SPECIFICATIONS The City maintains landscaping and other improvements in locations within the District's boundaries. The work and improvements to be undertaken by Landscaping Assessment District No. 41, ("District"), and the cost thereof paid from the levy of the annual Assessment provide special benefit to Assessor Parcels within the District as defined in the Method of Assessment herein. In addition to the definitions provided by the Landscaping and Lighting Act of 1972 (the "Act"), the work and improvements are generally described as mini -parks, slopes and open space areas within the District. The Assessment Diagram shows the location and extent of the Improvements to be installed, maintained or serviced by the proceeds from this Assessment District. Installation, maintenance and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, sidewalks, drainage systems, lighting, fencing, security patrols to protect the Improvements, graffiti removal and repainting, and labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District. As applied herein, "Installation" means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways and drainage, lights, playground equipment, play courts, playing fields, recreational facilities and public restrooms. "Maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including repair, removal or replacement of all or any part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste, and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. "Servicing" means the furnishing of electric current, orenergy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements; or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant CITY OF DIAMOND BAR WN LANDSCAPING ASSESSMENT DISTRICT N0.41 SCConsultingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 10 to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (Streets & Highways Code §22526). Modifications to the District structure could include, but are not limited to, substantial changes or expansion of the Improvements provided, substantial changes in the service provided, modifications or restructuring of the District including annexation or detachment of specific parcels, revisions in the method of apportionment, or proposed new or increased assessments. The assessment proceeds will be exclusively used for Improvements within the District plus incidental expenses. CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 41 SC RConsultingGYaup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 11 FISCAL YEAR 2015-16 ESTIMATE OF COST AND BUDGET BUDGET FOR FISCAL YEAR 2015-16 The 1972 Act provides that the total costs for providing the maintenance and servicing of the District Improvements and facilities can be recovered in the assessment spread including incidental expenses. The latter can include engineering fees, legal fees, printing, mailing, postage, publishing and all other costs identified with the District proceedings. An estimate of District costs for fiscal year 2015-16 for the maintenance and servicing of the Improvements is provided below. TABLE 1— FY 2015-16 ESTIMATE OF COSTS Expenditure Item Amount Salaries & Benefits $ 16,529 Operating Expenses Advertising 5,000 Utilities 57,700 Maintenance of Grounds/Buildings 17,000 Professional Services 5,500 Contract Services Landscape Maintenance 50,800 Tree Maintenance 18,100 Weed/Pest Abatement 44,200 Capital Improvements 0 Reserve for Future Capital Improvements 0 Estimated Expenditures $ 214,829 Revenue Item Amount Direct Benefit Assessments FY 2015/16 $ 122,157 General Fund Contribution 87,672 Prop A Contribution 5,000 Estimated Revenues $ 214,829 Budget Allocation to Parcels Amount Total Assessment Budget" $ 122,157 Total Assessable Parcels 554 Assessment per Parcel $ 220.50 CITY OF DIAMOND BAR I LANDSCAPING ASSESSMENT DISTRICT N0.41 SCIConsultingG;roup ENGINEERS REPORT, FISCALYEAR 2015-16 PAGE 12 Notes to Estimate of Costs: A. The Act requires that proceeds from the assessments must be deposited into a special fund that has been set up for the revenues and expenditures of the District. Moreover, funds raised by the assessment shall be used only for the purposes stated within this Report. Any balance remaining at the end of the Fiscal Year, June 30, must be carried over to the next Fiscal Year. The District may also establish a reserve fund for contingencies and special projects as well as a capital improvement fund for accumulating funds for larger capital improvement projects or capital renovation needs. Any remaining balance would either be placed in the reserve fund, the capital improvement fund, or would be used to reduce future years' assessments. CITY OF DIAMOND BAR am— LANDSCAPING ASSESSMENT DISTRICT No. 41 SCu!Con sultengGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 13 METHOD OF ASSESSMENT APPORTIONMENT METHOD OF APPORTIONMENT This section of the Engineer's Report explains the benefits to be derived from the Improvements and the methodology used to apportion the total assessment to properties within the District. The District consists of certain assessor parcels within the boundaries as defined by the Assessment Diagram referenced in this report and the parcels identified by the Assessor Parcel Numbers listed with the levy roll. The parcel list includes all privately and publically owned parcels as shown. The method used for apportioning the Assessment is based upon the relative special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The Assessment is apportioned to lots and parcels in proportion to the relative special benefit from the Improvements. The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the Improvements and the second step is to allocate the Assessments to property based on the estimated relative special benefit for each type of property. DISCUSSION OF BENEFIT In summary, the Assessments can only be levied based on the special benefit to property. This benefit is received by property over and above any general benefits. With reference to the requirements for assessments, Section 22573 of the Landscaping and Lighting Act of 1972 states: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. " Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that assessments must be based on the special benefit to property and that the value of the special benefits must exceed the cost of the assessment: No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on thatparcel. " The following benefit categories summarize the types of special benefit to residential, commercial, industrial and other lots and parcels resulting from the Improvements to be provided with the assessment proceeds. These types of special benefit are summarized as follows: CIN OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 41 SCIConsultingGroup ENGINEER'S REPORT, FISCALYEAR 2015-16 PAGE 14 A. Proximity to Improved Landscaped Areas and Other Public Improvements within the District. B. Access to Improved landscaped areas and Other Public Improvements within the District. C. Improved Views within the District. D. Extension of a property's outdoor areas and green spaces for properties within close proximity to the Improvements. E. Safety and Security within the District F. Creation of individual lots for residential and commercial use that, in absence of the Assessments, would not have been created. In this case, the recent SVTA v. SCCOSA decision provides enhanced clarity to the definitions of special benefits to properties from similar improvements in three distinct areas: Proximity Expanded or improved access Views The SVTA v. SCCOSA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA v. SCCOSA decision also provides specific guidance that park improvements are a direct advantage and special benefit to property that is proximate to a park that is improved by an assessment: The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement(e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district's property values). Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments. Moreover, the Dahms decision further clarified that certain services and improvements funded by assessments, that are over and above what otherwise would be provided and that other property in general and the public do not share or receive are 100% special benefit. The assessment -funded services upheld by Dahms included streetscape maintenance and security services. SPECIAL BENEFIT The District was formed by a different engineer of record. From the original Engineer's Report, the primary special benefits on landscaping are as set forth below: CITY OF DIAMOND BAR no LANDSCAPING ASSESSMENT DISTRICT No. 41 SC IIConsultengGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 15 1. Beautification of the streets which are used by all of the residents in Diamond Bar. 2. A sense of community pride resulting from well-maintained green spaces. 3. The enhancement of the value ofproperty which results from the foregoing benefits. 4. The enhancement of the value ofproperty which results from the foregoing benefits. I In addition, SCI assessment engineers have identified the following special benefits: PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share. In absence of the Assessments, the Improvements would not be provided and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair. Therefore, the Assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District. ACCESS TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Since the parcels in the District are nearly the only parcels that enjoy close access to the Improvements, they directly benefit from the unique close access to improved landscaping areas and other public improvements that are provided by the Assessments. This is a direct advantage and special benefit to property in the District. IMPROVED VIEWS WITHIN THE ASSESSMENT DISTRICT The City, by maintaining permanent public improvements funded by the Assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the Assessments are another direct and tangible advantage that is uniquely conferred upon property in the District. From the Engineer's Report, Update of Assessment District No. 41, Fiscal Year 2014-15, City of Diamond Bar, dated June 3, 2014 CITY OF DIAMOND BAR am- - - LANDSCAPING ASSESSMENT DISTRICT N0.41 SCIConsultingGroup ENGINEER'S REPORT, FISCALYEAR 2015-16 PAGE 16 EXTENSION OF A PROPERTY'S OUTDOORAREAS AND GREEN SPACES FOR PROPERTIES WITHIN CLOSE PROXIMITY TO THE IMPROVEMENTS In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial and other benefiting properties in the District do not have large outdoor areas and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements. SAFETY AND SECURITY WITHIN THE ASSESSMENT DISTRICT The City, through proper installation, maintenance and servicing of permanent public improvements funded by the Assessments in the District, provides increased security and safety by preventing crime and suppressing fire. For parks and recreation Improvements, proper lighting and well -kept landscapes help to deter crime and vandalism. Other landscaped area activities such as slope maintenance and brush clearing provide critical fire suppression. CREATION OF INDIVIDUAL LOTS FOR RESIDENTIAL AND COMMERCIAL USE THAT, IN ABSENCE OF THE ASSESSMENTS, WOULD NOT HAVE BEEN CREATED In most of the District, the original owner/developer(s) of the property within the District agreed unanimously to the Assessments. The Assessments provide the necessary funding for public improvements that were required as a condition of development and subdivision approval. Therefore, such Assessments allowed the original property to be subdivided and for development of the parcels to occur. As parcels were sold, new owners were informed of the Assessments through the title reports, and in some cases, through Department of Real Estate "White Paper" reports that the parcels were subject to assessment. Purchase of property was also an "agreement' to pay the Assessment. Therefore, in absence of the Assessments, the lots within most of the District would not have been created. These parcels, and the improvements that were constructed on the parcels, receive direct advantage and special benefit from the Assessments. GENERAL VERSUS SPECIAL BENEFIT Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to "separate the general benefits from the special benefits conferred on a parcel." The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section. In other words: CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT N0.41 SC-SConsultrngGroup ENGINEER's REPORT, FISCALYEAR 2015-16 PAGE 17 Total _ General Special Benefit Benefit + Benefit There is no widely -accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not "particular and distinct" and are not "over and above" benefits received by other properties. SVTA vs. SCCOSA provides some clarification by indicating that general benefits provide "an indirect, derivative advantage" and are not necessarily proximate to the improvements. In this Report, the general benefit is liberally estimated and described, and then budgeted so that it is funded by sources other than the Assessment. The starting point for evaluating general and special benefits is the current, baseline level of service. The Assessment will fund Improvements "over and above" this general, baseline level and the general benefits estimated in this section are over and above the baseline. A formula to estimate the general benefit is listed below: Benefit to Real Benefit to Real General__ Property Outside Property Inside the Benefit to Benefit the Assessment + Assessment District + the Public District that is Indirect and at Large Derivative Special benefit, on the other hand, is defined in the state constitution as "a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large." The SVTA v. SCCOSA decision indicates that a special benefit is conferred to a property if it "receives a direct advantage from the improvement (e.g., proximity to a park)." In these Assessments, as noted, properties in the District have close and unique proximity, views and access to the Improvements and uniquely improved desirability from the Improvements and other properties and the public at large do not receive significant benefits because they do not have proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special, and is only minimally received by property outside the Districts or the public at large. BENEFIT FINDING QUANTIFICATION OF GENERAL BENEFIT In this section, the general benefit from landscaping and other types of Improvements is liberally estimated and described, and then budgeted so that it is funded by sources other than the Assessment. CITY OF DIAMOND BAR no LANDSCAPING ASSESSMENT DISTRICT No. 41 SMConsultingGrouls ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 18 BENEFIT TO PROPERTY OUTSIDE THE ASSESSMENT DISTRICTS Properties within the District receive almost all of the special benefits from the Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large. However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the Assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis performed by SCI Consulting Group. Since certain properties outside the District enjoy close proximity and access to the Improvements cannot be assessed by the District, this is a form of general benefit to other property. There are 23 parcels outside the District that are directly adjacent to areas where slopes are maintained by the District. The benefits conferred to these properties do not include the Lot Creation benefit factor, therefore the benefit is reduced by half. The general benefit to property outside of the District is calculated as follows. ASSUMPTIONS: 23 parcels outside the District ® 554 parcels in the District ■ 50% Benefit Factor CALCULATION: General Benefit to property outside the District = 23/(23+ 554) x 50% =1.99% BENEFIT TO PROPERTY /NSIDETHE ASSESSMENT DISTRICTS THAT IS INDIRECTANDDERNATIIVE The "indirect and derivative" benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly "over and above" and "particular and distinct' when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District. Nevertheless, the SVTA vs. SCCOSA decision indicates there may be general benefit "conferred on real property located in the district" A measure of the general benefits to property within the Assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as regional parks, major roads, rail lines and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. The District boundaries are narrowly drawn to include only the residential areas within the neighborhood, and there are no regional facilities within the District. Therefore, the indirect and derivative general benefits to property within the District are zero. CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 41 S IConsultingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 PAGE 19 BENEFIT TO THE PUBLIC AT LARGE The general benefit to the public at large can be estimated by the proportionate amount of time that the District's Improvements are used and enjoyed by individuals who are not residents, employees, customers or property owners in the District. It should be noted that these Improvements do not attract the public at large in the same was as park improvements, and they confer far less benefit to the public at large than do similar park improvements. In essence, the public does not visit an area to enjoy slope improvements in the same way as they may visit a park. However, certain slopes maintained by the District may provide some enhancement to views enjoyed by the public as they drive past. Approximately 25% of the slopes and linear green areas maintained by the District lie along arterial roadways that carry a high percentage of traffic not associated with people who are not residents or property owners within the District. While there are not statistics available as to what percentage of pass -by vehicle trips are by non-residents or non -property owners, a liberal factor of 90% is assumed. Finally, of all the types of benefits conferred by the Improvements, passersby only benefit from views, which are estimated at 10% of the total benefits. Therefore we find that ((90% of 25%) x 10% _) 2.25% of the benefits from the Improvements are general benefits to the public at large. TOTAL GENERAL BENEFITS Using a sum of these three measures of general benefit, we find that approximately 4.24% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment. LANDSCAPING GENERAL BENEFIT CALCULATION 1.99% (Outside the District) 0% (Property within the District) 2.25% (Public at Large) 4.24% (Total General Benefit) Although this analysis finds that 4.24% of the assessment may provide general benefits from the Improvements, the Assessment Engineer establishes a requirement for a minimum contribution from sources other than the assessments of 5%. This minimum contribution above the measure of general benefits will serve to provide additional coverage for any other general benefits. CURRENT GENERAL BENEFIT CONTRIBUTION FROM THE CITY This general benefit cannot be funded from the Assessments; it must be funded from other sources such as the City's General Fund or other non -District funds. These contributions can also be in the form of in -lieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City of Diamond Bar will contribute both monetary and in -lieu resources to ensure that the CITY OF DIAMOND BAR GAP LANDSCAPING ASSESSMENT DISTRICT No. 41 SCIConsultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 20 general benefits conferred by the proposed Improvements are not funded by the District's Assessments. A summary and quantification of these other contributions from the City is discussed below: The City of Diamond Bar owns, maintains, rehabilitates and replaces curb and putter along the border of the District Improvements. This curb and gutter serves to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements. The contribution from the City towards general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 5%. The City owns and maintains a storm drainage system along the border of the District Improvements. This system serves to prevent flooding and associated damage to the Improvements, and manage urban runoff including local pollutants loading from the Improvements. The contribution from the City towards general benefit from the maintenance, and operation of the local storm drainage system is conservatively estimated to be 5%. The City owns and maintains local public streets along the border of the District Improvements. These public streets provide access to the Improvements for its enjoyment as well as efficient maintenance. The contribution from the City towards general benefit from the maintenance of local public streets is conservatively estimated to be 5%. The value of the construction of the improvements can be quantified and monetized as an annuity. Since this construction was performed and paid for by non -assessment funds, this "annuity" can be used to offset general benefit costs, and is conservatively estimated to contribute 10%. The total General Benefit is liberally quantified at 8% which is entirely offset by the conservatively quantified total non -assessment contribution towards general benefit described above of 25%. Therefore, no additional General Benefit must be funded by the City. METHOD OF APPORTIONMENT The development of an Assessment methodology requires apportioning to determine the relative special benefit for each property. As the District was formed by a different engineer of record, the precise language from the most recent Engineer's Report is included below: The net amount to be assessed upon lands within the District in accordance with this report is apportioned by a formula and method which fairly distributes the amount among all assessable lots orparcels in proportion to the estimated benefits to be received by each lot or parcel from the Improvements, namely the maintenance and servicing ofpublic landscaping impro vements within such District. The maintenance and servicing of public landscaping improvements installed and constructed in public places in the City of Diamond Bar provides a special benefit CITY OF DIAMOND BAR on LANDSCAPING ASSESSMENT DISTRICT N0.41 S ConsultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 21 which is received by each and every tot or parcel within the District, tending to enhance their value. The primary benefits on landscaping are as set forth below., 9. Beautification of the streets which are used by all of the residents in Diamond Ban 2 Public parks which can be utilized and enjoyed by all residents within the District 3. A sense of community pride resulting from well-maintained green spaces. 4. The enhancement of the value of property which results from the foregoing benefits. The existing land use information indicates that all of the parcels within the District are residences. Because the special benefits derived apply equally to all residents and parcels, it has been determined that all assessable parcels would receive the same net assessment.2 ANNUAL ASSESSMENT CALCULATION For fiscal year 2015-16 the amount of Assessments for the District is not increased from prior years. The estimated assessment per parcel is $220.50. DURATION OF ASSESSMENT The District was formed or annexed in previous years. It is proposed that the Assessments be continued every year after their formation or annexation, so long as the public Improvements need to be maintained and improved, and the City requires funding from the Assessments for these Improvements in the District. As noted previously, the Assessment can continue to be levied annually after the City Council approves an annually updated Engineer's Report, budget for the Assessment, Improvements to be provided, and other specifics of the Assessment. In addition, the City Council must hold an annual public hearing to continue the Assessment. APPEALS OF ASSESSMENTS LEVIED TO PROPERTY Any property owner who feels that the Assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the City of Diamond Bar City Administrator or his or her designee. Any such appeal is limited to correction of an Assessment during the then -current Fiscal Year and applicable law. Upon the filing of any such appeal, the City Administrator or his or her designee will promptly review the appeal and any information provided by the property owner. If the City Administrator or his or her designee finds that the Assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any 2 From the Engineer's Report, Update of Assessment District No. 41, Fiscal Year 2014-15, City of Diamond Bar, dated June 3, 2014 CITY OF DIAMOND BAR so LANDSCAPING ASSESSMENT DISTRICT N0.41 SMC0n suitingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE22 such changes are approved after the Assessment Roll has been filed with the County for collection, the City Administrator or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the City Administrator or his or her designee shall be referred to the Diamond Bar City Council, and the decision of the City Council shall be final. ASSESSMENT FUNDS MUST BE EXPENDED WITHIN THE DISTRICT AREA The net available Assessment funds, after incidental, administrative, financing and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section. CITY OF DIAMOND BAR No LANDSCAPING ASSESSMENT DISTRICT No. 41 SCIConsultingGroup ENGINEERS REPORT, FISCAL YEAR 2015-16 ASSESSMENT PAGE 23 WHEREAS, the City of Diamond Bar directed the undersigned engineer of Work to prepare and file a report presenting an estimate of costs, a Diagram for the District and an assessment of the estimated costs of the Improvements upon all assessable parcels within the District; Now, THEREFORE, the undersigned, by virtue of the power vested in me under the Act, Article XIIID of the California Constitution, and the order of the City of Diamond Bar City Council, hereby makes the following Assessment to cover the portion of the estimated cost of the Improvements, and the costs and expenses incidental thereto to be paid by the District. The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the District for the Fiscal Year 2015-16 is generally as follows: TABLE 2 — FY 2015-16 SUMMARY COST ESTIMATE FOR LANDSCAPING ASSESSMENT DISTRICT No. 41 Salaries & Benefits $ 16,529 Operating Expenses & SeNces 198,300 Capital Expenses 0 Total for Services $ 214,829 Less General Fund Contribution (87,672) Less Other Revenue (Prop A) (5,000) Net Amount to Assessments $ 122,157 As required by the Act, an Assessment Diagram of the District is hereto attached and incorporated herein by reference. The distinctive number of each parcel or lot of land in the District is its Assessor Parcel Number appearing on the Assessment Roll. I do hereby assess and apportion the net amount of the cost and expenses of the Improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within the District, in accordance with the special benefits to be received by each parcel or lot, from the Improvements, and more particularly set forth in the Estimate of Cost and Method of Assessment in the Report. The Assessment is made upon the parcels or lots of land within the District in proportion to the special benefits to be received by the parcels or lots of land, from the Improvements. CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT No. 41 S SConsultingProup ENGINEERS REPORT, FISCALYEAR 2015-16 PAGE 24 Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the County of Los Angeles for the Fiscal Year 2015-16. For a more particular description of the property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of the County. I hereby will place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the Fiscal Year 2015-16 for each parcel or lot of land within the District. Dated: March 26, 2015 s 2 C52 m By EXP. 12-31.16 CIVIC Engineer of Work Bliss, License No. C052091 CITY OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT N0.41 SCI[ConsultingGroup ENGINEER'S REPORT, FISCAL YEAR 2015-16 PAGE 25 ASSESSMENT DIAGRAM The District boundary and the parcels to be assessed in Landscaping Assessment District No. 39 are shown on the Assessment Diagram, which is on file with the City Clerk of the City of Diamond Bar, and includes all those properties included in the original formation of the District and subsequent annexations. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions as shown on the maps of the Assessor of the County of Los Angeles, for Fiscal Year 2015-16, and are incorporated herein by reference, and made a part of this Diagram and this Report. CIN OF DIAMOND BAR - LANDSCAPING ASSESSMENT DISTRICT No. 41 SOCon sultingGroup ENGINEERS REPORT, FISCALYEAR 2015-16 ' .✓ y r�� w 5 A w�;a � 7J fir, VIAN a+o ,t ynrt,� S e+JV '.r�,� em ��. '44'eG r hay f< 5 v4' 1 4,,,1 _:.. ,� v�'°`�� � p �✓ 2 .t a f �� •. �" ]+ h lq � l p ma b Cdsdx� p p� t� 3 ,' a 'n, < � A\� � ��✓ 'fag,' � a e _ I b A - J ✓ 5. �. gyp. p ^v VA / r v a A, a� � � {#v his 04 ���,., 1. �-�� J ���• 1 PAGE27 ASSESSMENT ROLL An Assessment Roll (a listing of all parcels assessed within the District and the amount of the Assessment) will be filed with the City Clerk and is, by reference, made part of this Report and is available for public inspection during normal office hours at the City Hall at 21810 Copley Drive, 2nd floor, Diamond Bar, California 91765. Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County Assessor records and these records are, by reference, made part of this Report. These records shall govern for all details concerning the description of the lots or parcels. CIN OF DIAMOND BAR LANDSCAPING ASSESSMENT DISTRICT N0.41 ENGINEERS REPORT, FISCAL YEAR 2015-16 TO: FROM: ADDRESS: CITY CLERK ORGANIZATION: AGENDA#/SUBJECT: DATE: 4 J- S J PHONE: (Optional) I expect to address the Council on the subject agenda/subject item. Please have the Council Minutes reflect my name and address as written above. h 9 ie, �— This document is a public record subject to disclosure under the Public Records Act. TO: CITY CLERK FROM: L (M - (JA yS ADDRESS: ;L LQn1r.1j-A �r /(Optional) ORGANIZATION: ht(k 'C� C L Eat AGENDA#/SUBJECT: DATE: V �-2 0(3 - PHONE: 36 Z `?,�06 (Optional) expect to address the Council on the subject agenda/subject item. Please have the Council Minutes reflect my name and address as written above. r This document is a public record subject to disclosure under the Public Records Act. TO: FROM: ADDRESS: CITY CLERK ORGANIZATION: CQ w DATE JW PHONE: q 7 P - (Optional) 1 /71J AGENDA#/SUBJECT: _J U P7L � G- I expect to address the Council on the subject agenda/subject item. Please have the Council Minutes reflect my name and address as written above. A � Signature This document is a public record subject to disclosure under the Public Records Act. TO: FROM: ADDRESS: CITY CLERK ORGANIZATION: C;1V0 I/ 4O( -me -S DATE: 76(a zig iCAl/'5 L'-lve, PHONE: aay-y89-507 (Optional) (Optional) AGENDA#/SUBJECT: Z�i.4moidc1 �OAk ZR4LSE a/l F,'e1011c I expect to address the Council on the subject agenda/subject item. Please have the Council Minutes reflect my name and address as written above. ature TM:.. .J..... .......4 1.+ .. ..h6,......nriJ �h4.�.•4 t., ,-li�.l..�.e ...J o. fho Di ihlin �en.,r-Ic 0..4 Y LU U H a W W Z O ❑ d c