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06/23/2009 FILE .,-COP-Y., . LITy GRAND TER R CE June 23,20�7 22795 Barton Road 2 , Grandlerrace California 92313-5295 Civic Center (909)824-6621 Fax(909)783=7629 F' (909)783-2600 CITY .OF GRAND- TERRACE Maryetta'Ferrtt - Mayor CRAXITY-COUNCIL- 'Lee Ann Garcia . - .Mayor ProTem' REGULAR•,MEETINGS• ,• • _ Bea Cortes - - - ' Jim Miller 2ND, AND 4TH Tuesday 6,:00_-p.m.- . Walt Stanclpewitz Council Members. , Steve Berry = Acting City Manager , Council Chambers Grand Terrace Civic Center , 22795 Barton-.Road, Grand- Terrace, CA 923115295 r CITY OF GRAND TERRACE COUNCIL MEETING AGENDA CITY COUNCIL CHAMBERS June 23,2009 GRAND TERRACE CIVIC CENTER 6:00 p.m. 22795 Barton Road THE CITY OF GRAND TERRACE COMPLIES WITH THE AMERICANS WITH DISABILITIES ACT OF 1990. IF YOU REQUIRE SPECI,AL'ASSISTANCE TO PARTICIPATE IN THIS MEETING,PLEASE CALL THE CITY CLERK'S OFFICE AT (909)824-6621 AT LEAST 48 HOURS PRIOR TO THE MEETING. IF YOU DESIRE TO ADDRESS THE CITY COUNCIL DURING THE MEETING,PLEASE COMPLETE A REQUEST TO SPEAK FORM AVAILABLE AT THE ENTRANCE AND PRESENT IT TO THE CITY CLERK. SPEAKERS WILL BE CALLED UPON BY THE MAYOR AT THE APPROPRIATE TIME. ANY DOCUMENTS PROVIDED TO A MAJORITY OF THE CITY COUNCIL REGARDING ANY ITEM ON THIS AGENDA WILL BE MADE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK'S OFFICE AT CITY HALL LOCATED AT 22795 BARTON ROAD DURING NORMAL BUSINESS HOURS'. IN ADDITION,SUCH DOCUMENTS WILL BE POSTED ON THE CITY'S WEBSITE AT WWW.CITYOFGRANDTERRACE.ORG * Call to Order- * Invocation-Pastor Salim Elias,Azure Hills Seventh-Day Adventist Church * Pledge of Allegiance * Roll Call- STAFF COUNCIL AGENDA ITEMS RECOMMENDATION ACTION CONVENE COMMUNITY REDEVELOPMENT AGENCY 1. Approval of 06-09-2009 Minutes Approve 2. Adopt FY 2009-2010 CRA Budget,CRA Loan Resolution and Adopt Resolution for Retroactive Remittance for Residual Receipts Agreement ADJOURN COMMUNITY REDEVELOPMENT AGENCY CONVENE CITY COUNCIL 1. Items to Delete 2. SPECIAL PRESENTATIONS A. Highgrove Metrolink Station Update B. Harmony in the Garden Workshop Update C. 2010 Census Partner Proclamation D. Commendation-Brian Phelps 3. CONSENT CALENDAR F_ -The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time j without discussion. Any Council Member,Staff Member,or Citizen may request removal of an item from the Consent Calendar for � discussion. I_ —1 A. Approve Check Register Dated 06-23-2009 Approve B. Waive Full Reading of Ordinances on Agenda C. Approval'of 06-09-2009 Minutes Approve D. Resolution Adopting FY 2009-2010 City Budget Adopt E. Resolution Authorizing the City Attorney to Cooperate with the Adopt League of California Cities and Counties in Litigation Challenging the Constitutionality of any Seizure by State Government of the Ci 's Street Maintenance Funds i COUNCIL AGENDA 06-23-2009 PAGE 2 OF 2 AGENDA ITEMS STAFF COUNCIL RECOMMENDATIONS ACTION F. Amendment of Personnel Rules and Regulation and Employee Approve Benefits G. Wage and Salary Resolution, Reclassifications, and Job Approve Descriptions for the City of Grand Terrace H. Approve 2009 Water Share Purchase for 4 Locations Within the Approve City 4. PUBLIC COMMENT t j This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law,the City Council may not discuss or act 1 on any item not on the agenda,but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public j comment or may request a matter be agendized for a future meeting. j 5. REPORTS A. Committee Reports-None B. Council Reports 6. PUBLIC HEARINGS-None 7. UNFINISHED BUSINESS A. Property Lease Agreement American Promotional Events, Inc. Approve Dba Freedom Fireworks/Red Devil Fireworks/TNT Fireworks B. Review Parking Permit Options on DeBerry Street Approve 8. NEW BUSINESS A. Resolution Authorizing Proceedings to Refund Outstanding Adopt 1997 Certificates of Participation and Approving Related Documents B. Temporary Fields for Grand Terrace Little League Use Approve 9. CLOSED SESSION-None ADJOURN CITY COUNCIL CONVENE GRAND TERRACE PUBLIC FINANCING AUTHORITY 1. Adopt a Resolution Authorizing Proceedings to Refund Adopt Outstanding 1997 Certificates of Participation and Approving Related Documents and Actions i ADJOURN GRAND TERRACE PUBLIC FINANCE AUTHORITY I i I THE NEXT CRA/CITY COUNCIL MEETING WILL BE HELD ON TUESDAY,JULY 14,2009 AT 6:00 P.M. ........................................................................................................................... AGENDA ITEM REQUESTS MUST BE SUBMITTED IN WRITING TO THE CITY CLERK'S OFFICE NO LATER THAN 14 CALENDAR DAYS PRECEDING THE MEETING PENDING CRA APPROVAL CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY MINUTES REGULAR MEETING-JUNE 9,2009 A regular meeting of the Community Redevelopment Agency, City of Grand Terrace, was held in the Council Chambers,Grand Terrace Civic Center,22795 Barton Road,Grand Terrace,California, on June 9, 2009 at 6:00 p.m. PRESENT: Maryetta Ferre, Chairman Lee Ann Garcia, Vice-Chairman Bea Cortes, Agency Member Jim Miller, Agency Member Walt Stanckiewitz, Agency Member Brenda Mesa, City Clerk Steve Berry, Acting City Manager Bernie Simon, Finance Director Joyce Powers, Community& Economic Development Director Richard Shields, Building & Safety Director Sgt. Hector Gomez, Sheriff's Department John Harper, City Attorney ABSENT: John Salvate, San Bernardino County Fire Department CONVENE COMMUNITY REDEVELOPMENT AGENCY AT 6:00 P.M. APPROVAL OF 05-26-2009 MINUTES CRA-2009-26 MOTION BY VICE-CHAIRMAN GARCIA, SECOND BY AGENCY MEMBER CORTES,CARRIED 5-0,to approve the May 26,2009 Community Redevelopment Agency Minutes. BUDGET APPROVAL FOR THE ACQUISITION OF 22720 VISTA GRANDE WAY AND DEMOLITION OF THE EXISTING STRUCTURES CRA-2009-27 MOTION BY AGENCY MEMBER CORTES, SECOND BY VICE-CHAIRMAN GARCIA,CARRIED 5-0,to Appropriate$85,000 from Undesignated Available 80% Redevelopment Fund Balance to a Project Account Established by the Finance Director to Fund Related Project Costs and Authorize the Acting Agency Executive Director to Execute the Escrow Documents and Complete all Actions Necessary to carry out the Acquisition and Demolition. CLOSED SESSION-CONFERENCE WITH REAL PROPERTY NEGOTIATORS (GC54956.8) CRA AGENDA ITEM NO. j Community Redevelopment Agency Minutes June 9,2009 Page 2 PROPERTY - 22209 Lark Street G 167-271-43) AGENCY NEGOTIATOR- STEVE BERRY NEGOTIATING PARTY - COUNTRYWIDE FUNDING UNDER NEGOTIATION - PRICE AND TERM OF PAYMENT Chairman Ferr6 announced that the Agency met in Closed Session to hold a Conference with - Real Property Negotiators(GC54956.8)for the Property located at 22209 Lark Street(1167- 271-43) and that there was no reportable action taken. i Chairman Ferr6 adjourned the Community Redevelopment Agency Meeting at 6:39 p.m , until the next CRA/City Council Meeting that is scheduled to be held on Tuesday,June 23,2009 at,,6:00 p.m. SECRETARY of the Community Redevelopment Agency of the City of Grand Terrace CHAIRMAN of the Community Redevelopment Agency of the City of Grand Terrace i I I i I 1 CAL(FORNIA S taff Report r,- Finance Department CRA ITEM X) COUNCIL ITEM ( ( ) MEETING DATE:_ June 23, 2009 AGENDA ITEM To: Honorable Mayor and Council Members From: Bernie Simon, Finance Director SUBJECT: Adoption of FY 2009-10 CRA Budget, CRA Loan Resolution and Resolution for Retroactive Remittance for Residual Receipts Agreement FUNDING REQUIRED _XXX NO FUNDING REQUIRED BACKGROUND: On May 12, 2009, the Agency Board conducted a review of the Preliminary CRA Budget for the fiscal year beginning July 1, 2009 through June 30, 2010. A second budget hearing was conducted on June 9, 2009. Changes were made to both the City and CRA budget in accordance with direction of the Board or as a result of such changes to the cost allocation or interfund transfers. Changes to the original preliminary budget document include allocated salary savings due to CM vacancy, allocated CM settlement package, a loan to the General Fund and professional services for a cost allocation. A list of the differences between the original preliminary budget and the budget proposed to be adopted are as follows: CRA REVENUE— Original Preliminary Budget to Current FUND ♦ CRA Combined Revenue► 05/12/09 $ 9,023,086 CRA Capital Project Transfer to CRA Cap Proj. 50,000 To fund additional deficit Total CRA Revenue $ 9,073,086 CRA EXPENDITURES— Ori final Preliminary Btrd et to Current FUND ♦ CRA Combined-Expend► 05/12/09 $ 8,050,216 CRA Capital Project Professional Services 30 000 To fluid cost alloc study Continued on next page CRA AGENDA ITEM NO. CRA EXPENDITURES— Ori final Prelimina Budget(continued) CRA Capital Project CM Vacancy Cost Savings% (9,465) CRA Capital Project CM Settlement Package% 26,400 CRA Capital Project Resulting Cost Alloc Chgs. '5,919 CRA Debt Service Loan to City 155,725 To fund temp loan CRA Debt Service Resulting Cost Alloc Chgs. 5,919 CRA Debt Service Transfer to CRA Cap Proj. 510,000 To.fund additional deficit CRA Low Mod CM Vacancy Cost Savings% (5,698) CRA Low Mod CM Settlement Package% 17,600 CRA Low Mod Resulting Cost Alloc Chgs. (11,812) Total CRA Expenditures $ 8,31;4,804 INFORMATION Staff is also requesting that the Board adopt related resolutions to authorize a CRA loan to the General Fund and authorize a retroactive remittance to the City for a residual receipts agreement regarding the senior housing project, in conjunction with the budget resolution. The total CRA budget for FY 2009-10 consists of proposed expenditures of$8,314,804 supported by estimated revenues of$ 9,073,086 and use of fiend balance reserve as needed. Community Redevelopment Agency Budget SUMMARY REVENUE AND EXPENDITURES - FY 2009-2010 CRA Fund Revenue Expend. Surplus (Deficit) Capital Projects 946,000 (653,271) 292,729 Debt Service 6,547,487 (5,658,367) 889,120 Low Mod Housing 1,579,599 (2,003,166) (423,567) Total 9,073,086 (8,314,804) 758,282 CRA REVENUES by cate ry consist of: Revenue CRA Cap CRA Debt Sv CRA L/M Total Category Proj Fund Fund Housing Property Tax 0 5,783,910 1,4461200 7,230,110 Increment) Interest/Rents 46,000 150,000 120,940 316,940 Other 0 0 12,459 12,i459 Transfers—Out 900,000 613,577 0 1,5131577 Total Revenue 1 946,000 6,547,487 1,579,599 1 9,073;086 014 ^vl-1.-6 AA00:i.-_JA Ar9,) 3 CRA EXPENDITURES by category consist of: Expenditure CRA Cap CRA Debt Sv CRA L/M Total Category Proj Fund Fund Housing Salaries/Benefits 297,808 0 249,357 547,165 Maintenance 4,400 0 41,550 45,950 Operations Prof/Contracts 185,000 105,700 57,000 347,700 Debt Service 0 4,289,819 0 4,289,819 Residual Recpt. 600,000 600,000 Agreement Capital Proj/Other 220,800 0 300,000 520,800 Loan-General Fund 0 155,725 0 155,725 Cost Alloc (54,737) 207,120 141,682 294,065 Transfers-Out 1 0 900,000 613,577 1,513,577 Total Expenditures 1 653,271 5,658,364 2,003,166 8,314,801 CHANGES IN FUND BALANCE RESERVE-FY 2009-2010 CRA Fund Beginning Expend. New Ending Fund Surplus Designation Available Balance (Deficit) s Fund FY 2009-10 Balance Capital Projects (291,670) 292,729 0 1,059 Debt Service 6,621,368 889,120 (2,700,000) 4,810,488 Low Mod Housing 1,422,021 (423,567) 0 998,454 Total 7,751,719 758,282 (2,700,000) 5,810,001 CRA TOTAL FUND BALANCE RESERVE- FY 2009-2010 CRA Fund TOTAL LESS: Ending Fund DESIG Available Balance RESVD Fund 6-30-2010 FUNDS Balance Capital Projects 1,059 0 1,059 Debt Service 7,510,488 2,700,000 4,810,488 Low Mod Housing 998,454 0 998,454 Total Fund Balance 8,510,001 2,700,000 5,810,001 An important issue for the CRA is the upcoming property tax increment limitation that is expected to be reached in 2012. However, CRA debt is scheduled to be paid through Fiscal year 2022. The agency is in this situation because the market increase in the assessed value over the last five to ten years was greater than the original long term projected tax increment increase of two to three percent. In other words, the agency received tax increment faster than originally projected. 4 Therefore, a designated reserve should be made to segregate a portion of non-housing fund balance reserve to insure that funds needed to pay off committed debt is not spent in the near future. This does not change the total non-housing fund balance, but it will effect what is considered available. If the Board does agree to designate such funds, the Board could still use the fund balance at any time. However, the Board would need a specific action to either remove such funds from the designated fund balance to undesignated, unreserved fund balance or make an appropriation from the designated fund balance reserve. Staff is recommending that $2,700,000 be removed from available CRA non-housing fund balance to insure that the agency will have the ability to pay its' bond debt, even if the CRA plan is not amended in the future. This issue demonstrates the importance for the agency to amend the RDA Plan to increase the tax increment limitation. This issue is currently being worked on by the' Community and Economic Development Department. i This action would reduce the available overall, non-housing, CRA Fund Balance Reserve from $7,511,547 to $4,811,547. The overall available CRA Fund Balance Reserve, including Low Mod Housing, would change from $8,510,001 to $5,810,001. ALTERNATIVE ACTIONS 1) Adopt budget as is; 2) Do not adopt budget; 3) Make changes and adopt budget FISCAL IMPACT: Adoption of CRA Budget will result in: • CRA Capital Project Revenue $946,000 • CRA Capital Project Expenditures and Transfer Out $653,271 o Change in CRA Capital Project Fund Balance of$292,729 o Projected Ending Fund Balance at 6-30-2010 of$1,059 ❖ CRA Debt Service Revenue $6,547,487 ❖ CRA Debt Service Expenditures and Transfer Out $5,658,367 o Change in CRA Debt Service Fund Balance of$889,120 (before allocation of$2.7 million designation) o Allocation of$2,700,000 from Available Fund Balance to Designated Fund Balance of$2,700,000 for future bond debt o Projected Ending Fund Balance at 6-30-2010 of$4,810,488 i 5 ✓ CRA Low Mod Housing Revenue $1,579,599 ✓ CRA Low Mod Housing Expenditures and Transfer Out $2,003,166 o Change in CRA Low Mod Housing Fund Balance of negative <$423,567> o Projected Ending Fund Balance at 6-30-2010 of$99&.454 Overall CRA Revenue of$9,073,086 Overall CRA Expenditures of$8,314,801 4 Overall Change in CRA Fund Balance Reserve of$758,282 4. Designation of$2,700,000 from available reserves Projected Overall available CRA Fund Balance Reserve at 6-30- 2010 of$5,810,001 4. Projected Overall Designated CRA Fund Balance Reserve at 6-30- 2010 of$2,700,000 Staff Recommends that Council: 1) Adopt Resolution to Loan Funds from CRA to General Fund 2) Adopt Resolution to Authorize Retroactive Remittance for Residual Receipts Agreement with City for Senior Housing Project 3) Adopt FY 2009-10 Budget Resolution: Enclosures: 61172M CITY AND CRA OF GRAND TERRACE ANALYSIS OF AVAILABLE FUND BALANCE PROJECTED THROUGH 6/30/2010 Revised Proposed Budget BUDGET Projected BUDGET BUDGET FY 2009-10 PROJECTED Available FY 2009-10 FY 2009-10 FY 2009-10 AVAILABLE REVENUES EXPENDITURES FUND & & REVENUES FUND BALANCE TRANSFERSIN TRANSFERS OUT OVER(UNDER) BALANCE CONSERVATIVE EXPENDITURES W3012010 6/30/2009 PROPOSED PROPOSED PRISED 10 GENERAL FUND-Undesignated 2,831,483 5,280,674 (5,222,845) 57,830 2,889,313 10 10 GENERAL FUND-Designated 925,558 0 0 0 925,558 10 10 GENERAL FUND-CLEEP Reserve 21,686 0 0 0 21,686 , 10 TOTAL GENERAL FUND 3,778,727 5,280 674 5 222 845 57,830 3,836,557 , 10 11 Street Fund 765,661 1,003,082 (247,500) 755,582 .1,521,243 11 12 Storm Drain Fund 77,659 31,800 (12,276) 19,524 97,183 12 13 Park Fund 203,775 13,965 (92,821) (78,856) 124,919 13 14 AB 3229 COPS Fund 0 298,418 (298,418) (0) (0) 14 15 Air Quality Improvement Fund 36,077 15,730 (41,100) (25,370) 10,707 15 16 Gas Tax Fund 4 356,765 (335,315) 21,450 21,464 16 17 Traffic Safety Fund 12,815 66,400 (53,750) 12,650 25,465 17 18 TDA Fund 0 0 0 0 0 18 19 Facilities Development Fund 188,894 23,000 (63,814) (40,814) 148,080 19 20 Measure I Fund 7,847 380,600 (394,955) (14,455) (6,608) 20 21 Waste Water Disposal Fund 1,712,486 1,552,800 (1,918,917) (366,117) 1,346,369 21 26 LSCPG/LGHTG Assessment Dist 13,509 14,335 (14,065) 270 13,779 26 28 NPDES FUND 0 0 0 0 0 28 44 Bike Lane Capital Fund (1,163) 200,000 (200,000) 0 (1,163) 44 46 Street Improvement Projects (1,182) 327,500 (327,500) 0 (1,182) 46 47 Barton Rd. Bridge Project (166,262) 580,000 (580,000) 0 (166,262) 47 TOTAL OTHER FUNDS 2,850,120 4,864,295 4 580 431 283,864 3,133,984 ----32-CAPITAL-PROJECTS-FUND-------(291,670) __-_--_946,000_-_ (653,271). _292,729 1,059 32 33 DEBT SERVICE FUND 6,621,368 6,547,487 (5,658,364) 889,123 7,510,491 33 34 LOW& MODERATE HOUSING 1,422,021 1,579,599 2,003 166 (423,567) 998,454 34 TOTAL CRA FUNDS 7,751,719 9,073,086 8,314 801 768,285 8,510,004 TOTAL-ALL FUNDS 14,380,566 19,218,055 (18,118,077) 1,699,978 15 480,544 J � Version 5A n CITY OF GRAND TERRACE FISCAL YEAR 2009-2010 BUDGET ESTIMATED REVENUE SUMMARY - ALL FUNDS (7 Months) BUDGET 'ACCOUNT 2004-2005 2005-2006 2000-2007 2007-2008 2008-2009 2008-2009 2009-2010 NUMBER TITLE ACTUAL ACTUAL ACTUAL ACTUAL ESTIMATED TO 02-2849 ESTIMATED _ GENERAL FUND TOTAL-PROPERTY TAXES 434,979 1,326,046 1,446,977 1,497,163 1,492,946 766,702 1,481,600 TOTAL-LICENSE&PERMITS 640,191 834,641 705,323 690,433 725,261 264,294 664,800 TOTAL-OTHER TAXES 1,607,294 1,107,742 1,071,311 1,002,664 1,035,000 643,989 986,905 TOTAL-INTERGOVERNMENTAL 55,611 53,859 79,418 699,260 85,515 22,324 63,677 TOTAL-CHARGES FOR SERVICES 51,814 167,400 207,290 174,311 126,800 97,761 106,100 TOTAL-PLANNING FEES b7,816 101,308 68,241 29,617 22,776 16,750 22,900 TOTAL-RECREATION FEES 3,611 11,637 10,674 7,560 11,300 4,686 11,300 TOTAL-CHILD CARE FEES 906.963 1,010,302 988,670 948,957 1,126,797 684,629 1,042,017 TOTAL-USE FEES 26,603 12,783 13,196 8,641 10,680 6,962 2,500 TOTAL-FINES&FORFEITURES 29,031 36,500 26,986 41,234 31,195 16,923 30,760 TOTAL-USE OF MONEY/PROPERTY 80,634 603,208 232,906 240,269 343,160 78,605 98;600 TOTAL-MISCELLANEOUS REVENUE 68,830 289,786 116,083 525,002 14,368 1,859 24,000 TOTAL-OTHER SOURCES OF REVENUE 36,890 15,280 10,490 11,228 300,000 300,000 766,726 GENERAL FUND TOTAL REVENUE 4,000,306 6,699,992 4,987,644 5,874,339 5,325,758 2,694,482 6,260,674 STREET FUND TOTAL 10,490 236,406 246,106 425,121 817.590 63,776 1,003,082 STORM DRAIN FUND TOTAL 3,000 SIA86 32,108 63,782 37,430 1,033 31,800 PARK FUND TOTAL 209 49,465 100,802 683,832 35,847 6,276 13,966 SLESF IAB3229 COPS FUND TOTAL 203,723 251,944 281,436 292,573 299,045 60,955 298,418 AIR QUALITY IMPROVEMENT FUND TOTAL 41,919 15,384 15,842 16,352 16,485 4,363 15,730 GAS TAX FUND TOTAL 395,248 393,282 269,999 271,386 467,629 100,697 3",766 TRAFFIC SAFETY FUND TOTAL 58,711 06,461 64,099 65,536 57,031 33,072 66,400 TDA FUND TOTAL 0 0 0 0 0 0 0 FACILITIES FUND TOTAL 0 764 27,324 197,554 28,781 2,493 23,000 MEASURE"I"FUND TOTAL 180.878 204174 206,614 192,773 196,354 101,911 380,600 WASTEWATER DISPOSAL FUND TOTAL 1,562A" 1,611,645 1,609,436 1,646,981 1,629,659 828,766 1,562,800 LANDSCAPE 3 LIGHTING DIST FUND TOTAL 12,461 10010 8,164 14,466 12,326 5,887 14,336 REDEVELOPMENT AGENCY CRA CAPITAL PROJECT FUND TOTAL 505,212 202,844 2,895,454 719,870 1,853,098 34,124 946,000 CRA DEBT SERVICE FUND TOTAL-PROPERTY TAXES 4,317,636 4,928A19 6,244,113 5,671,691 5,626,140 2,816,686 5,783,910 TOTAL-OTHER REVENUE SA53,067 773,571 840,690 893,365 770,302 72,587 763,577 CRA DEBT SERVICE FUND TOTAL 13,770,592 5,701,990 6,084,803 6.565,046 6,395.442 2,889,273 6,647,487 LOW/MOD INCOME HOUSING FUND TOTAL 5,443,186 1,630,796 2,149,077 1,986,186 1,652,875 753,234 1,579,599 TOTAL REDEVELOPMENT AGENCY ' 19,718,990 7,435,630 11,129,334 9,270,102 9,802,016 3,676,631 9,073,086 CAPITAL PROJECT FUN09- BIKE LANE FUND TOTAL 44 0 0 86,004 26,696 129,711 0 200,000 STREET CAPITAL FUND TOTAL 46 0 0 1,342,907 600,000 60,000 0 327,500 BARTON BRIDGE FUND TOTAL 47 0 2,446 0 0 580,000 0 580,000 0 2AN 1,427,911 626,696 769,711 0 1,107,500 GRAND TOTAL J V5A CITY AND CRA OF GRAND TERRACE PRELIMINARY BUDGET FY 2009-10 SUMMARY OF EXPENDITURES - ALL FUNDS (INCLUDING TRANSFERS) 2008-M 2008-09 2008-10 2004-05 2005436 2006-07 2007-08 REVISED EXPENDED DEPT Expenditures ACTUAL ACTUAL ACTUAL ACTUAL BUDGET THRU 02-28-09 REQUEST 10 GENERAL FUND 3,933,844 4,152,117 5,704,841 5,902,628 6,383,610 4,419,516 5,222,845 11 Street Fund 151,503 162,704 111,479 20,000 129,683 5,514 247,500 12 Storm Drain Fund 22,159 15,776 15,385 10,289 17,165 18,041 12,276 13 Park Fund 22,628 0 146,190 283,282 112,498 44,588 92,821 14 AB 3229 COPS Fund 224,866 251,944 261,436 292,574 299,045 289,491 298,418 15 Air Quality Improvement Fund 53,089 8,174 971 1,008 28,449 544 41,100 16 Gas Tax Fund 329,170 329,149 393,307 432,404 506,284 288,799 335,315 17 Traffic Safety Fund 110,997 134,698 49,580 62,379 57,031 5,644 53,750 18 TDA Fund 0 0 0 0 0 0 0 19 Facilities Development Fund 0 0 0 27,762 17,757 1,378 63,814 20 Measure I Fund 166,187 156,249 88,623 393,180 285,931 143,033 394,955 21 Waste Water Disposal Fund 1,630,655 1,623,702 1,518,726 1,620,359 1,735,373 494,264 1,918,917 26 LSCPG1 LGHTG Assessment Dist 7,391 3,334 9,752 7,905 14,350 5,726 14,065 28 NPDES FUND 0 0 0 0 0 0 0 44 Bike Lane Capital Fund 3,380 0 84,370 34,634 127,131 66,462 200,000 46 Street Improvement Projects 520 785 1,320,168 601,182 60,000 0 327,500 47 Barton Rd. Bridge Project 485 24,459 837 500 580,000 25,033 580,000 TOTAL OTHER FUNDS 2,723,030 2,710,974 4,000,824 3,787 458 3,970,697 1,388,517 4,580,431 32 CAPITAL PROJECTS FUND 717,600 1,837,578 1,413,614 509,671 1,572,902 516,341 653,271 33 DEBT SERVICE FUND 12,037,474 4,672,507 4,404,004 5,037,840 6,803,828 2,226,888 5,658,364 - - -34 LOW-&MODERATE-HOUSING--- -----968;508- _,-3;707;600- -11977�499-- ---4;509,-793 ---4,121,434 ----21757,-208- --u2;0031166-- ----- -- TOTAL CRA FUNDS 13,723,582 10,217,685 7,795,117 10,057,304 12,498,164 5,500,437 8,314,801 TOTAL-ALL FUNDS 20,380,456 17,080,776 17,500,782 19,747,390 22,852,471 11,308,470 18,118,077 1 1 RESOLUTION NO. 2009- A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE, CALIFORNIA, AUTHORIZING A LOAN TO THE CITY OF GRAND TERRACE FOR FY 2009-10 WHEREAS, the agency board has considered a loan to the City of Grand Terrace general fund through the budget process; and WHEREAS, the basis for such loan has been determined to be additional administrative overhead charges that will be charged to the agency once a overhead cost study has been undertaken to justify such charges; and WHEREAS, the redevelopment agency desires to loan the City of Grand Terrace general fund up to $156,000; in advance of a revised overhead cost study; and WHEREAS, the agency board desires to loan such funds to the City on a short- term basis; and WHEREAS, the agency has surplus funds that are earning interest in investments as authorized by government code 53600; and NOW THEREFORE, the Board of Directors of the Community Redevelopment Agency of Grand Terrace does hereby resolve, declare, determine, and order as follows: Section 1. There are sufficient funds in the unreserved, undesignated non-housing Fund Balance Reserves of the Community Redevelopment Agency to fund a loan to City of Grand Terrace general fund. Section 2. The amount of the short-term loan to the City will not exceed $156,000. Section 3. Funds are due and payable to the Agency on or before July 1, 2010. Section 4. Loaned finds will accrue interest at the rate of the average Local Agency Investment Fund rate (LAIF). PASSED, APPROVED, AND ADOPTED this 23rd day of June, 2009. Attest: A Secretary of the Grand Terrace Community Chairman of the Grand Terrace Redevelopment Agency Community Redevelopment Agency Approved as to form; Agency Counsel 1 RESOLUTION NO. 2009- A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE, CALIFORNIA, AUTHORIZING A RETROACTIVE REMITTANCE PAYMENT TO THE CITY OF GRAND TERRACE FOR SECURITY OF RESIDUAL RECEIPTS FROM SENIOR HOUSING PROJECT WHEREAS, the City of Grand Terrace has entered into a Regulatory Agreement, dated October 27, 2005, a Ground Lease, dated September 22, 2005, a First Amendment to Ground Lease, dated August 1, 2008, and an Assignment and Assumption Agreement dated January 17, 2006 with a non-profit affordable development corporation in regards to a senior housing development; and WHEREAS, the Community Redevelopment Agency of the City of Grand Terrace (the agency) agency board has entered into a Low and Moderate Income Senior Housing Residual Receipts Security Agreement with the City of Grand Terrace on February 24, 2009; and WHEREAS, the agency has entered into this agreement to secure sufficient Residual Receipts to compensate the City for its performance under said Regulatory Agreement and Ground Lease; and WHEREAS, the agency obligation starts with the commencement date of the Regulatory Agreement; and WHEREAS; the agency board has compensated the City of.Grand Terrace for its obligations under the Regulatory Agreement and Ground Lease for FY 2008-09; and WHEREAS; the agency board compensation to the City of Grand Terrace for its obligations under the Regulatory Agreement and Ground Lease may not exceed $300,000; and NOW THEREFORE, the Board of Directors of the Community Redevelopment Agency of Grand Terrace does hereby resolve, declare, determine, and order as follows: Section 1. City of Grand Terrace should be compensated for its obligations under the Regulatory Agreement and Ground Lease for FY 2007-08. Section 2. The proper amount of fiends will be appropriated in the Community Redevelopment Low Mod Housing Fund for compensation to the City. Section 3. Funds are due and payable to the City on July 1, 2009. PASSED, APPROVED, AND ADOPTED this 23'`i day of June, 2009. Attest: Secretary of the Grand Terrace Community Chairman of the Grand Terrace Redevelopment Agency Community Redevelopment Agency Approved as to form; Agency Counsel I 1 RESOLUTION NO. 2009- A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE,CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING A BUDGET FOR FISCAL YEAR 2009-10 WHEREAS, the Community Redevelopment Agency of the City of Grand Terrace ( the Agency) Board of Directors desire to adopt a budget for the subsequent fiscal year using estimated revenues and estimated expenditures; and WHEREAS, the Agency operates on a fiscal calendar year beginning on July I" of each year and ending on June 301h of the next year; and. WHEREAS, the source of redevelopment revenue is primarily property tax increment by virtue of the establishment of the agency and project area for which such funds would have otherwise been allocated to other overlapping taxing agencies; and WHEREAS, the staff has presented an operating and capital budget containing the redevelopment funds, to meet the needs of the citizens of the City of Grand Terrace, the objectives of redevelopment plan, and to'improve the supply and preservation of low and moderate income housing in the project area and in the City; and WHEREAS, the Board is aware that the redevelopment property tax increment limitation of$70,000,000 may be reached by fiscal year 2012 while debt service on agency bonds currently extend to fiscal year 2022; and NOW THEREFORE, the Board of Directors of the Community Redevelopment Agency of Grand Terrace does hereby resolve, declare, determine, and order as follows: Section 1. The budget for Fiscal Year 2009-10, a copy of which has been filed in the City Clerk's office, is hereby adopted with projected beginning (combined) CRA fund balance reserves of$7,751,719, total expenditures of$8,159,079, including transfers-out, and a loan of$155,725 to the General Fund, all to be funded by estimated revenues of$9,073,086 and the use of$423,567 in available CRA Low Mod Fund Balance Reserve. A summary of the CRA Budget by fund is referenced in "Exhibit A" Section 2. The Agency board authorizes the Director to make budget adjustments to the adopted budget to reallocate appropriations between departmental activities. Only the Agency Board, by motion and affirmative majority vote, by minute action or by resolution, may make increases and decreases in estimated find revenues and fund appropriations. Section 3. Designate $2,700,000 of available non housing fond balance reserve for future bond payments, in excess of the tax increment limitation, should the 1� i a i 2 agency not adopt a plan amendment to increase the tax increment limitation. PASSED, APPROVED, AND ADOPTED this 23'd day of June, 2009. Attest: Secretary of the Grand Terrace Community Chairman of the Grand Terrace Redevelopment Agency Community Redevelopment Agency Approved as to form; Agency Counsel i I 1. 1 RESOLUTION NO. 2009- A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING A BUDGET FOR FISCAL YEAR 2009-10 "EXHIBIT A" FY 2009-10 Estimated Revenues and Exnenditures and CHANGES IN AVAILABLE FUND BALANCE RESERVE — FY 2009-2010 CRA Fund Beginning Revenue Expend. Ending Fund Available Balance Fund Balance Capital Projects, a (291,670) 946,000 (653,271) 1,059 Debt Service 6,621,368 6,547,487 (5,658,367) 4,810,488 Debt Service- (2,700,000) Designated Low Mod Housing 1,422,021 1,579,599 (2,003,166) 998,454 (To Designated) 2,700,000 !" 1 Total 7,751,719 9,073,086 (8,314,804) 5,810,001 CHANGES IN DESIGNATED FUND BALANCE RESERVE — FY 2009-2010 CRA Fund Beginning Revenue Expend. Ending Fund Available Balance Fund Balance Capital Projects, a 0 0 0 0 Debt Service 0 0 0 0 Debt Service- 0 2,700,000 0 2,700,000 Designated Low Mod Housing 0 0 0 0 Total 0 2,700,000 0 2,700,000 A r Ar J t , 2010 Census Partner WHEREAS, an-accurate census count is vital to our community and residents well-being by helping planners determine where to locate schools,day-care centers,roads and public transportation, hospitals and other facilities, and is used to make decisions concerning business growth and housing needs, and WHEREAS, more than $300 billion per year in federal and state funding is allocated to states and communities based on census data, and WHEREAS, census data ensure fair Congressional representation by determining how many seats each state will have in the U.S. House of Representatives as well as the redistricting of state "0 legislatures, county and city councils, and voting districts;and WHEREAS, the 2010 Census creates jobs that stimulate economic growth and increase employment opportunities in our community, and WHEREAS,the information collectedly the census isprotectedly law and remains confidential for 72 years; NOW, THEREFORE, we PROCLAIM that the City Council of the City of Grand Terrace, is committed to partnering with the U.S. Census Bureau to help ensure afull and accurate count in 2010. As a 2010 Census partner, we will: 1. Support the goals and ideals for the 2010 Census and will disseminate 2010 Census information to encourage those in our community to participate. 2. Encourage people in Grand Terrace to place an emphasis on the 2010 Census and participate in events and initiatives that will raise overall awareness of the 2010 Census and ensure afull and accurate census. 3. Support census takers as they help our community complete an accurate count 4. Create or seek opportunities to collaborate with other like-minded groups in our community, such as Complete Count Committees to utilize high-profile,trusted voices to advocate on behay' of the 2010 Census. This 23'day of June, 2009. Mayor Ferri Mayor Pro Tem Garcia Council Member Cortes Council Member Miller Council Member Stanckiewitz COUNCIL AGENDA ITEM N;0.---� vchlist Voucher List Page: 1 06/17/2009 3:05:45PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 63667 6/3/2009 005702 PUBLIC EMPLOYEES' RETIREMENT PRend0529200E Contributions for PRend 5/29/09 10-022-62-00 19,625.35 Total : 19,625.35 63668 6/4/2009 002901 G T. AREA CHAMBER OF COMMERCE DINNER Chamber Dinner-Garcia/Stanckiewitz 10-120-270-000-000 5000 10-110-270-000-000 5000 Total : 100.00 63669 6/4/2009 006459 S.B. COUNTY CLERK OF THE BOARD GLENDORA RO Road Reconstruct. Exempt Notice 10-175-255-000-000 5000 Total : 50.00 63670 6/4/2009 006459 S.B. COUNTY CLERK OF THE BOARD MT VERNON RI Road Reconstruct. Exempt Notice 44-200-623-000-000 50.00 Total : 50.00 63671 6/8/2009 011047 THAI KITCHEN 06092009 Budget Workshop Dinner-Council 10-110-270-000-000 85.39 Total : 85.39 63672 6/8/2009 006772 STANDARD INSURANCE COMPANY 00607869 0001 EMPLOYE LIFE AND DISABILITY INS. Page: 1 COUNCIL AGENDA ITEM NO.89� vchlist Voucher List Page: 2 06/17/2009 3:05:45PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 63672 6/8/2009 006772 STANDARD INSURANCE COMPANY (Continued) 10-120-142-000-000 20.85 10-125-142-000-000 13.90 10-140-142-000-000 20.85 10-172-142-000-000 3.13 10-175-142-000-000 2.09 10-180-142-000-000 27.86 10-370-142-000-000 13.85 10-380-142-000-000 6.95 10-440-142-000-000 54.35 10-450-142-000-000 1043 21-572-142-000-000 633 32-370-142-000-000 3.23 34-400-142-000-000 9.95 34-800-142-000-000 9.73 10-185-142-000-000 6.95 10-022-66-00 1,218.08 Total : 1,428.53 63673 6/8/2009 006772 STANDARD INSURANCE COMPANY 160-513170-000 JUNE EMPLOYEE DENTAL INSURANCE 10-022-61-00 1,160.52 10-180-142-000-000 44.08 10-370-142-000-000 176.32 Total : 1,380.92 63674 6/8/2009 010737 WESTERN DENTAL SERVICES INC. June 002484 JUNE EMPLOYEE DENTAL INSURANCE 10-022-61-00 59.04 Total : 59.04 63675 6/8/2009 004587 MANAGED HEALTH NETWORK 3200006844 JUNE MHN INSURANCE Page: 2 vchlist voucher List Page: 3 06/17/2009 3:05:45PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 63675 6/8/2009 004587 MANAGED HEALTH NETWORK (Continued) 34-800-142-000-000 8.96 10-185-142-000-000 6.40 34-400-142-000-000 9.28 10-180-142-000-000 6.40 10-440-142-000-000 6.40 10-120-142-000-000 19.20 10-125-142-000-000 12.80 10-140-142-000-000 19.20 10-172-142-000-000 2.88 10-175-142-000-000 1 92 10-180-142-000-000 26.24 10-370-142-000-000 14.72 10-380-142-000-000 6.40 10-440-142-000-000 134.40 10-450-142-000-000 9.60 21-572-142-000-000 6.40 32-370-142-000-000 3.20 Total : 294.40 63676 6/11/2009 006285 RIVERSIDE HIGHLAND WATER CO 06-2009 Water Share Trans Fee- 10-180-245-000-000 5050 Total : 50.50 63677 6/13/2009 011003 PETTY CASH 06132009 REPLENISH PETTY CASH 10-010-01-00 442.02 34-010-01-00 66.71 Total : 508.73 63678 6/13/2009 010764 SAFEGUARD DENTAL &VISION 2560878 JUNE EMPLOYEE DENTAL/VISION INSURANCE 10-022-61-00 444.39 Total : 444.39 63679 6/17/2009 010164 GREAT-WEST MAY Deferred Comp Loans for May 10-022-64-00 630.05 10-022-63-00 4,711 58 Total : 5,341.63 Page. 3 vchlist Voucher List Page: 4 06/17/2009 3:05:45PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 63680 6/23/2009 001040 ADDINGTON, MATTHEW JUNE June Commission Stipend 10-801-120-000-000 50.00 MAY May Commission Stipend 10-801-120-000-000 50.00 Total : 100.00 63681 6/23/2009 001145 AMATEUR ELECTRONIC SUPPLY 2086938-01 EOC/CERT TRAILER ANTENNAS 10-808-235-000-000 229.97 Total : 229.97 63682 6/23/2009 010459 ANIMAL EMERGENCY CLINIC 339928 Animal Emergency Service 10-190-256-000-000. 55.00 Total : 55.00 63683 6/23/2009 010678 ARCHIVE MANAGEMENT SERVICE 0079308 FY 08/09 BACKUP TAPE STORAGE 10-180-250-000-000 55.25 10-140-250-000-000 55.25 Total : 110.50 63684 6/23/2009 001840 CITY OF COLTON 000915 Wastewater Lab Testing Charges 21-570-802-000-000 1,200.00 Total : 1,200.00 63685 6/23/2009 011029 COBRA SIMPLE 29 May Cobra Admin Fees 10-120-220-000-000 50.00 Total : 50.00 63686 6/23/2009 010086 COMSTOCK, TOM JUNE June Commission Stipend 10-801-120-000-000 50.00 Total : 50.00 63687 6/23/2009 010972 CONSOLIDATED_ REPROGRAPHICS 013207 Mt. Vernon Ave Street Impv. 44-200-623-000-000 2.28 __Monthly_Website Maintenance _ - — 10-175-246-000-000 - - -- ---.__-----�__ .___�---- ---- -----9.79----- Total : 12.07 63688 6/23/2009 010147 CORTES, BEA ' JUNE AUTO June Auto Allowance Page: 4 r vchlist voucher List Page: 5 06/17/2009 3:05:45PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 63688 6/23/2009 010147 CORTES, BEA (Continued) 10-110-273-000-000 20000 JUNE STIPEND June Council Stipend 32-200-120-000-000 150.00 10-110-120-000-000 166.49 Total : 516.49 63689 6/23/2009 001907 COSTCO#478 2264 C. CARE SUPPLIES 10-440-228-000-000 92.61 10-440-220-000-000 3087 Total : 123.48 63690 6/23/2009 010745 D & E ELECTRICAL CONTRACTORS 467 FURNISH/INSTALL ONE 20 FT. LIGHT 13-445-706-000-000 1,858.00 Total : 1,858.00 63691 6/23/2009 001950 DATA QUICK B1-1525073 May Subscription Service 21-572-246-000-000 60.17 34-800-220-000-000 6017 10-380-250-000-000 60.16 Total : 180.50 63692 6/23/2009 001942 DATA TICKET INC. 27490 FY 08/09 PARKING CITE PROCESSING 10-140-255-000-000 115.00 Total : 115.00 63693 6/23/2009 001960 DELL MARKETING L.P. XD7R58CC9 SR. CENTER COMPUTER &2 PRINTERS 10-180-701-000-000 299.00 10-180-701-000-000 24.41 XD7R6WM51 SR. CENTER COMPUTER &2 PRINTERS 10-180-701-000-000 38035 XD7XW7MT5 DELL 490 EXTENDED SERVICE#5FDK5B1- 10-180-701-000-000 211.00 Total : 914.76 63694 6/23/2009 003210 DEPT 32-2500233683 0/3032610 MAINT SUPPLIES 10-180-245-000-000 3368 Page: 5 vchlist Voucher List Page: 6 06/17/2009 3:05:45PM CITY OF GRAND TERRACE Bank code bofa Voucher Date Vendor Invoice Description/Account Amount 63694 6/23/2009 003210 DEPT 32-2500233683 (Continued) Total : 33.68 63695 - 6/23/2009 002450 FERRE', MARYETTA JUNE AUTO June Auto Allowance 10-110-273-000-000 200.00 JUNE STIPEND June Council Stipend 32-200-120-000-000 150.00 10-110-120-000-000 25000 Total : 600.00 63696 6/23/2009 002740 FRUIT GROWERS SUPPLY 90330082 Misc. Landscaping Supplies 32-600-320-000-000 3774 90331889 Misc Landscaping Supplies 32-600-320-000-000 2.13 90332545 Misc Landscaping Supplies - 10-450-245-000-000 28.17 Total : 68.04 63697 6/23/2009 011012 G &G ENVIRONMENTAL COMPLIANCE GTSSMP-0509 SEWER SYSTEM MGT PLAN CONSULTING 21-573-255-000-000 805.50 Total : 805.50 63698 6/23/2009 002901 . G T. AREA CHAMBER OF COMMERCE 5599-AD JOINT NEWSLETTER CONTRIBUTION 10-125-213-000-000 87000 Total : 870.00 63699 6/23/2009 002795 GARCIA, LEE ANN JUNE AUTO June Auto Allowance 10-110-273-000-000 200.00 JUNE STIPEND June Council Stipend 32=200-120-000-000 150.00 10-110-120-000-000 9.49 Total : 359.49 63700 6/23/2009 010181 GOPHER PATROL 180456 GOPHER CONTROL SERVICES 10-450-245-000-000-- - ---- - - ----- —----- --- ----465.00-_---_- Total : 465.00 63701 6/23/2009 003171 HINDERLITER de LLAMAS &ASSOC 001528-IN 2nd Qtr Sales Tax Services ` ` Page: 6 l vchlist voucher List Page: 7 06/17/2009 3:05:45PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 63701 6/23/2009 003171 HINDERLITER de LLAMAS &ASSOC. (Continued) 10-140-250-000-000 150.00 32-370-250-000-000 150.00 Total : 300.00 63702 6/23/2009 003867 K. D. SALES 191572 PLUMBING SUPPLIES 10-450-245-000-000 34.79 Total : 34.79 63703 6/23/2009 010367 LOMA LINDA UNIV. HEALTH CARE EG07778018 NEW EMP PHYSICALS & EMP INJURIES 10-190-224-000-000 70.00 - Total : 70.00 63704 6/23/2009 010812 LOWE'S COMMERCIAL SERVICES 67103 MAINT SUPPLIES 10-450-245-000-000 55.90 67103A Misc Equip Code Enforcement dept 34-800-218-000-000 21.70 85307/08 Taxes payable for inv#85307/08 10-180-246-000-000 328.80 Total : 406.40 63705 6/23/2009 010611 MCNABOE, DARCY JUNE June Commission Stipend 10-801-120-000-000 50.00 MAY May Commission Stipend 10-801-120-000-000 50.00 Total : 100.00 63706 6/23/2009 010446 MILLER, JIM JUNE AUTO June Auto Allowance 10-110-273-000-000 200.00 JUNE STIPEND June Council Stipend 32-200-120-000-000 150.00 10-110-120-000-000 250.00 Total : 600.00 63707 6/23/2009 010863 MOLINA, SANDRA FEB-JUN Mileage Reimbursement 10-370-271-000-000 58.08 Total : 58.08 Page: 7 vchlist Voucher List Page: 8 06/17/2009 3:05:45PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 63708 6/23/2009 010546 MPOWER COMMUNICATIONS 387767-JUNE June Phone Line Maint. Service 10-808-235-000-000 32.22 10-450-235-000-000 62.75 10-440-235-000-000 274.53 387798-JUNE June Phone Line Maintenance Svc 10-190-235-000-000 97970 10-380-235-000-000 200.00 10-808-235-000-000 5884 Total : 1,608.04 63709 6/23/2009 005400 OFFICE DEPOT 476539271-001 Misc. Office Supplies 10-120-210-000-000 4739 Total : 47.39 63710 6/23/2009 010851 PARADIGM PRESSURE WASHING MAY 2009 FY 08/09 GRAFFITI CLEAN UP 10-180-255-000-000 500.00 Total : 500.00 63711 6/23/2009 005586 PETTY CASH 06112009 Petty Cash Replenishment 10-440-228-000-000 61.63 10-440-210-000-000 4 31 10-440-221-000-000 31 79 10-440-223-000-000 4023 Total : 137.96 63712 6/23/2009 010663 PHELPS, BRIAN JUNE June Commission Stipend 10-801-120-000-000 50.00 MAY May Commission Stipend 10-801-120-000-000 50.00 Total : 100.00 63713 6/23/2009 005673 RENTAL SERVICE CORPORATION 41343348-001 Misc Small Tools/Supplies 10-180-218-000-000 2350 -- -- -- --- Total : 23.50 63714 6/23/2009 010171 REPUBLIC ELECTRIC 509112 May Traffic Signal Maint 16-510-255-000-000 451 68 Page: 8 vchlist voucher List Page: 9 06/17/2009 3:05:45PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date _ Vendor Invoice Description/Account Amount 63714 6/23/2009 010171 REPUBLIC ELECTRIC (Continued) Total : 451.68 63715 6/23/2009 010723 RICHARD POP_E &ASSOCIATES 3875 Architectural Services Ornge Gry pkwy 13-445-710-000-000 500.00 3876 May Consulting Services 13-445-710-000-000 270.00 Total : 770.00 63716 6/23/2009 006242 RIVCOMM LLC 103008 Remove/Install city vehicle equip. 10-180-272-000-000 489.37 Total : 489.37 63717 6/23/2009 006341 ROSENOW SPEVACEK GROUP INC. 060309 May Pass through/tax incremnt svcs 34-400-251-000-000 1,000.00 Total : 1,000.00 63718 6/23/2009 006435 SAN BERNARDINO, CITY OF 4192 ANIMAL SHELTER SERVICES 10-190-256-000-000 290.00 4192A May Animal Shelter Services 10-190-256-000-000 140.00 Total : 430.00 63719 6/23/2009 010664 SHELL FLEET MANAGEMENT 8000209687906 May Maintenance Vehicle Fuel - 10-180-272-000-000 608.28 Total : 608.28 63720 6/23/2009 006720 SO.CA.EDISON COMPANY 06022009 May.Utility Charges 10-450-238=000-000 69.97 15-500-601-000-000 29.45 16-510-238-000-000 5,657.52 26-600-238-000-000 49.80 26-601-238-000-000 41.50 26-602-238-000-000 5810 Total : 5,906.34 63721 6/23/2009 006730 SO.CA.GAS COMPANY 06042009 May Utility/CNG Fuel Charges Page. 9 vchlist Voucher List Page: 10 06/17/2009 3:05:45PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 63721 6/23/2009 006730 SO.CA.GAS COMPANY (Continued) 10-180-272-000-000 9.72 10-440-272-000-000 3.24 34-800-272-000-000 3.24 10-440-238-000-000 30.27 10-190-238-000-000 124.64 Total : 171.11 63722 6/23/2009 010974 STANCKIEWITZ, WALT JUNE June Council Stipend 32-200-120-000-000 15000 10-110-120-000-000 250.00 JUNE AUTO June Auto Allowance 10-110-273-000-000 200.00 Total : 600.00 63723 6/23/2009 006898 SYSCO FOOD SERVICES OF L.A. 906031304 C. CARE FOOD &SUPPLIES - 10-440-220-000-000 670.55 906101107 C. CARE FOOD &SUPPLIES 10-440-220-000-000 326.53 Total : 997.08 63724 6/23/2009 011048 TAYLOR, WILLIAMS B. CUP-09-03 Refund of Admin CUP-09-03 10-420-12 350.00 Total : 350.00 63725 6/23/2009 010590 TERRA LOMA REAL ESTATE JUNE June Prop Management Fees 32=600-05 96.00 Total : 96.00 63726 6/23/2009 010934 THE SATELLITE WORKS INC. 3008190028, FY 08/09 MONTHLY ACCESS FEE 10-808-235-000-000 41.95 Total : 41.95 63727 6/23/2009 007036 TRAFFIC SPECIALTIES INC.__ __ _______907286_._ ___ _ ._Traffic Ctrl Signs/Equipment______ 16-900-220-000-000 2,469.39 Total : 2,469.39 63728 6/23/2009 001038 VERIZON WIRELESS-LA 0765237345 May-Jun Wireless Phone Services Page. 10 vchlist Voucher List Page: 11 06/17/2009 3:05:45PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 63728 6/23/2009 001038 VERIZON WIRELESS-LA (Continued) 34-400-235-000-000 147.69 Total : - 147.69 63729 6/23/2009 007795 WAXIE 71321791 City Hall Janitorial Supplies 10-180-245-000-000 1,050.20 71322253 Janitorial Supplies-City Hall 10-180-245-000-000 105.31 Total : 1,155.51 63730 6/23/2009 007854 WESTERN EXTERMINATORS CO 432143 PEST CONTROL 10-180-245-000-000 86.50 10'-805-245-000-000 33.00 Total : 119.50 63731 6/23/2009 010455 WESTERN HIGHWAY PRODUCTS INC 637391 GT Advertising Signs 10-180-230-000-000 387.23 - Total : 387.23 63732 6/23/2009 007920 WILLDAN 062-10245 PROFESSIONAL SERVICES 10-172-250-000-000 4,360.00 062-10246 PROFESSIONAL SERVICES 10-172-250-000-000 4,300.00 Total : 8,660.00 63733 6/23/2009 010842 WILLIAMS, ALLAN S. MAY Mileage Reimbursement 10-370=271-000-000 11.28 Total : 11.28 63734 6/23/2009 007925 WILSON, DOUG JUNE June Commission Stipend 10-801-120-000-000 50.00 MAY May Commission Stipend 10-801-120-000-000 50.00 Total : 100.00 63735 6/23/2009 007938 WIRZ&COMPANY, 57163 Swim Program Postcard Mailer 10-180-230-000-000 1,23675 Page: 11 vchlist Voucher List Page: 12 06/17/2009 3:05:45PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 63735 6/23/2009 007938 WIRZ&COMPANY (Continued) 57212 Post card advertisement Movie Night 10-180-230-000-000 1,236.77 Total: 2,473.52 63736 6/23/2009 007987 XEROX CORPORATION 040824139 CC 55 COPIER LEASE- 10-190-700-000-000 334.49 10-190-700-000-000 20.43 10-190-212-000-000 8.84 040824140 CC265 COPIER LEASE 10-190-700-000-000 270.66 10-190-700-000-000 20.35 10-190-212-000-000 3.33 Total: 658.10 63737 6/23/2009 007984 YOSEMITE WATERS 20931419 BOTTLED WATER SERVICE 10-190-238-000-000 176.19 10-440-238-000-000 37 30 10-805-238-000-000 25.55 34400-238-000-000 7.70 Total: 246.74 59497284-e 6/17/2009 007400 U. S. BANK TRUST N.A. JUNE '97 COP MONTHLY LEASE PAYMENT 33-300-206-000-000 23,111.67 Total: 23,111.67 72 Vouchers for bank code: bofa Bank total: 93,574.96 72 Vouchers in this report Total vouchers: 93,574.96 I certify that to the best of knowledge, the afore-listed checks for payment of City and Community Redevelopment Agency liabilities have been audited by me and are necessary and appropriate for the operation of City and Agency. Bernie Simon, Finance Director Page. 12 PENDING CRY COUNCIL APPROVAL CITY OF GRAND TERRACE CITY COUNCIL MINUTES REGULAR MEETING -JUNE 9,2009 A regular meeting of the City Council of the City of Grand Terrace was called to order in the Council Chambers, Grand Terrace Civic Center,22795 Barton Road,Grand Terrace, California, on June 9, 2009 at 4:00 p.m. PRESENT: Maryetta Ferre, Mayor Lee Ann Garcia, Mayor Pro Tem Jim Miller, Councilmember Bea Cortes, Councilmember Walt Stanckiewitz, Councilmember Brenda Mesa, City Clerk Steve Berry, Acting City Manager Bernard Simon, Finance Director Joyce Powers, Community&Economic Development Director Richard Shields, Building& Safety Director Sgt. Hector Gomez, San Bernardino County Sheriff's Department John Harper, City Attorney ABSENT: John Salvate, San Bernardino County Fire Department CONVENE COMMUNITY REDEVELOPMENT AGENCY AND CITY COUNCIL MEETING AT 4:00 P.M. 1. REVIEW THE PROPOSED FY 2009-2010 CRA/CITY COUNCIL BUDGET Mayor Ferre announced that this is the second budget workshop. Acting CitManager Berry gave an over view of the past budgets. He indicated that over the past few years the City has operated with a General Fund Structural Budget Imbalance, which means that the revenues do not equal the expenditures. The budget imbalances were solved with a number of one time revenues. He stated that the Council set as one of their priorities a balanced budget for the 2009-2010 Fiscal Year. Staff worked hard to come up with a balanced budget and are also beginning to work on the structural budget imbalance. Negotiations with employees were held and the result was a cut in health care benefits,bonus programs were cut and there will be no cost of living adjustments for the second year and merit pay increases have also been cut for the 2009-2010 Fiscal Year to ensure that there will be no further full-time employee lay-offs or work furloughs. There is no recommendation for cuts to Law Enforcement or services to the residents as well as no tax or fee increases. He stated that there are two proposals, Proposal A and Proposal B. He stated that the only difference between Proposal A and Proposal B is Proposal A eliminates the Assistant City COUNCIL AGENDA ITEM NO.�� Council Minutes 06/09/2009 Page 2 Manager Position and Proposal B does not. Staff is recommending Proposal A with the elimination of the Assistant City Manager Position to balance the budget. Finance Director Bernie Simon, gave an overview of the proposed FY 2009-2010 Budget. It was the consensus of the Council to Support Staff s Proposal A. - Chairman Ferrd temporarily adjourned the CRA/City Council Meeting at 4:40 p.m. CONVENE CITY COUNCIL MEETING 6:00 P.M. The City Council meeting was opened with Invocation by Raul Montano of Calvary, the Brook Church, followed by the Pledge of Allegiance led by Councilman Walt Stanckiewitz. CONVENE CITY COUNCIL MEETING ITEMS TO DELETE -None SPECIAL PRESENTATIONS 2A. Women of Distinction Acting City Manager Steve Berry,stated that Assemblyman Bill Emmerson every year holds his Women of Distinction Award. This year four individuals from Grand Terrace were recognized. Mayor Ferre announced that Frances Carter, Lee Ann Garcia, Bobbie Forbes and Freddie Harris were recognized at the 5" Annual Woman of Distinction Luncheon hosted by Assemblyman Bill Emmerson each as one of the 63 Women of Distinction in the 63`d Assembly District of the State of California. Each Woman is receiving a Certificate of Recognition from the City of Grand Terrace. 2B. Water Poster Contest Winners - Grand Terrace Elementary Don Hough, Riverside Highland Water Company, announced the winners of ;the Water Awareness Poster Contest from Grand Terrace Elementary School. CONSENT CALENDAR i CC-2009-66 MOTION BY COUNCILMEMBER CORTES, SECOND BY MAY PRO TEM GARCIA, CARRIED 5-0, to approve the following Consent Calendar Items: Council Minutes 06/09/2009 Page 3 3A. Approve Check Register Dated June 9, 2009 3B. Waive Full Reading of Ordinances on Agenda 3C. Approval of 05-26-2009 Minutes 3D. Quarterly Financial Update Through March 31, 2009 3E. Contract Between the City of Grand Terrace - Blue Waves Swim Program and the Riverside YMCA for Swim Lessons and Open Swim Program at Terrace Hills Middle School for Summer 2009 3F. Resolution-Finding a Severe Fiscal Hardship will Exist if Additional Local Property Tax Funds are Seized and Additional Unfunded Mandates are Adopted by the State of California PUBLIC COMMENT Vic Pfennighausen, 12364 Pascal Street,indicated that he is the Chairman of the Emergency Operations Committee and reported that previous tests that were done on the emergency generator at City Hall showed that the community room,which is used as the EOC,was not carried by the emergency generator. After talking to staff,an electrician corrected the wiring and a test was ran on Friday,June 5,2009 and confirmed that the emergency generator picks up the load in the community room. He also reported that the City purchased the broadcast radio system and the FCC identifies the radio as a travelers information service. This radio is a public service radio system licensed by the Federal Radio Commission. The allotted radio frequency is 1640 kcam. He is assuming that the system, as soon as he received the temporary license, will be on air with a test broadcast to check the area coverage. The system will then be moved to City Hall and place the digital message into service on a 24 hr program. If Council has any questions he will be happy to answer them. Angelagnon, 22322 Van Buren Street, expressed her concern about how little the City is thinking about the youth in Grand Terrace and her frustration with the City wanting to get rid of fireworks. Acting City Manager BeM,thanked Vic Pfennighausen on all of the work that he does on behalf of the EOC. He stated that the Council is concerned about the youth. An agenda item will be brought to the Council regarding temporary fields at Pico Park. REPORTS 5A. Committee Reports 1. Historical and Cultural Activities Committee a. Minutes of May 4, 2009 CC-2009-67 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEMBER i Council Minutes 06/09/2009 Page 4 CORTES, CARRIED 5-0, to accept the May'4,2009 Minutes of the Historical and Cultural Activities Committee. i 2. Emergency Operations Committee a. Minutes of May 5, 2009 CC-2009-68 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEMBER i' CORTES, CARRIED 5-0, to accept the May 5, 2009 Minutes of the Emergency Operations Committee. 5B. Council Reports I Mayor Pro Tem.Garcia,reminded everyone about movie night which will be held on Friday, June 26,2009: Gates open at 7:00 p.m. She reported that swim lessons begin June',15,2009. Grand Terrace Chamber of Commerce Installation Dinner will be held on Thursday,June 11, 2009. a Councilmember Stanckiewitz, attended a League of California Cities Executivel Forum in San Diego. He reported that attendance was way down,however, for those that were there it was a lively session. He spent most of his time in economic and community development modules of the instructions. He picked up some strategies that he hopes to share with the r } Community and Economic Development Director to see if some of those ideas can work in Grand Terrace. He reported that he and wife participated in a neighborhood clean-up and beautification proj ect and that it turned out really nice. He thanked all of the volunteers that participated in that project. He reported that there is a massive effort to stop the State from borrowing money from the cities to help balance the budget. The League is involved and bringing attention to what the State is trying to do. He reported that June 14, 20109 is Flag Day. I Mayor Ferre,thanked Joyce Powers for putting together the neighborhood clean-up. She and her husband were there and she was very impressed with the experience. PUBLIC HEARINGS -None UNFINISHED BUSINESS-None NEW BUSINESS 8A. Proposed Wage and Compensation Committee CC-2009-69 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEMBER MILLER, CARRIED 5-0, to direct staff to prepare the updated Rules and , Council Minutes 06/09/2009 Page 5 Regulations for the Administration of Personnel Matters Resolutions for Council review. 8B. 2009-2010 Annual Review of Landscape and Lighting District No. 89-1 CC-2009-70 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEMBER CORTES, CARRIED 5-0, to approve a Resolution ordering the City Engineer to prepare plans, specifications, cost estimates, diagrams and assessment reports, (Engineers Report), adopt a Resolution approving Engineer's Report and adopt a Resolution of Intentions Scheduling a Public Hearing for July 14, 2009. CLOSED SESSION -None Mayor Ferr6 adjourned the meeting at 6:30 p.m., until the next City Council Meeting which is scheduled to be held on Tuesday, June 23, 2009 at 6:00 p.m. CITY CLERK of the City of Grand Terrace � t MAYOR of the City of Grand Terrace 1 tYr^" CALIFORNIA Staff Report Finance Department CITY ITEM( COUNCIL ITEM(X) MEETING DATE: June 23, 2009 AGENDA ITEM To: Honorable Mayor and Council Members From: Bernie Simon, Finance Director SUBJECT: Adoption of FY 2009-10 City Budget, FUNDING REQUIRED XXX NO FUNDING REQUIRED BACKGROUND: On May 12, 2009, the City Council conducted a review of the Preliminary City Budget for the fiscal year beginning July 1, 2009 through June 30, 2010. A second budget hearing was conducted on June 9, 2009. Changes were made to both the City and CRA budget in accordance with direction of the Council or as a result of such changes to the cost allocation or interfund transfers. Changes to the original preliminary budget document include allocated salary savings due to CM vacancy, allocated CM settlement package, elimination of funding for the ACM position from 10/1/09 to 6/30/10 for a savings of$131,150, various add backs and various budget line item reductions. The total CM Vacancy savings from 7/1/09 to 10/1/09 is $62,600 allocated between the CRA and the General Fund. Likewise the total CM settlement is projected at $176,000 allocated between the CRA and General Fund. A list of the differences between the original preliminary budget and the budget proposed to be adopted are as follows: GENERAL FUND REVENUE—OriginalPreffininary Bud et to Current General Fund Revenue 05/12/09 $ 5,119,050 Loan from CRA addition 155,725 Swim Program Add back 5,900 Total General Fund $ 5,280,675 Revenue COUNCIL AGENDA ITEM NO. :--' 1 i GENERAL FUND EXPENDITURES— Original Preliminary Budget to Current General Fund 05/12/09 $ 5,065,436 Expenditures Swim program Program add back 8,000 Graffiti Contract Add back 6,000 DAP Contract Add back 5,000 Volunteer Picnic Add back 2,000 Deputy (fully supported) Add back 216,458 CM—Salary & Benefits% Vacancy 7/1 to 10/1/09 (471,440) _ -savings City Council Travel Reduction (5,000) CM Training Reduction 1:(300) CM Travel Reduction (4,000) Finance Travel Reduction (i,000) Finance Training Reduction (1,000) Building Dept Travel Reduction (2,000) Building Dept Training Reduction 1(600) Comm Svcs-Small Tools Reduction (1,000) Comm Svs. Training Reduction (1,500) Comm Svs. Travel Reduction (1,000) Non-Dept Postage Reduction (2,000) Non-Dept—Spec Dept Reduction (2,000) Non-Dept—Communictns. Reduction (2,000) Non-Dept—Memberships Reduction—ICSC (1,500) Non-Dept—Memberships Reduction—NLC (1,000) CED Travel Reduction (1,000) CED Training Reduction .(500) MIS Travel Reduction (750) MIS Training Reduction (500) Park Maintenance-Mn.E Reduction (3,000) Planning Comm Training Reduction : (500) Planning Comm Travel Reduction ' (500) Child Care—Parking Lot Eliminate resurfacing (7,500) ACM-Salary & Benefits Eliminate Funding 10/1/09 to (134,148) 6/30/10 Recruitment Costs—CM Addition 2,000 Gen Liability Prog cost Correction/addition 17,281 CM—Salary & Benefits% CM Settlement—alloc% -add 132,000 Changes to Cost Alloc-net Adjustments due to changes (2,592) Total General Fund 5,222,845 Expenditures i J Ni.11,I 'A 0 3a.3A AliuVl.i001 3 SPECIAL REVENUE FUND REVENUE—Original Prelin inary Budget to Current ALL SR FUNDS 05/12/09 $ 3,756,795 Changes 0 Total Special Revenue $3,756 795 Fund Revenue SPECIAL REVENUE FUND EXPENDITURES—Original Preliminary Budget to Current ALL SR FUNDS 05/12/09 $ 3,472,521 Changes to Cost Alloc-net Adjustments due to changes 410 Total Special Revenue 3,472,931 Fund Expenditures CAPITAL PROJECTS FUND REVENUE— Original Pre inary Budget to Current ALL CAP FUNDS 05/12/09 $ 1,107,500 Changes 0 Total Capital Project $1,107,500 Fund Revenue CAPITAL- PROJECTS FUND EXPENDITURES—Original Preliminary Budget to Current ALL CAP FUNDS 05/12/09 $ 1,107,500 J Changes 0 Total Capital Project 1,107,500 Expenditures INFORMATION Total City budget for FY 2009-10 consists of proposed expenditures of$9,803,276 supported by estimated revenues of$10,144,969 and use of fund balance reserve as needed. The FY 2009-10 combined City Budget results in a net budget surplus of $341,693. The General Fund budget represents proposed expenditures of$5,222,845, including transfers out, supported by estimated revenues of$5,280,674. The proposed FY 2009-10 General Fund Budget results in a surplus of$57,829 with a projected ending, overall, General Fund Balance Reserve of$3,836,557, of which $947,244 is designated. The ending, overall, combined City Fund Balance Reserves amount to $6,970,540 including designated fund balance reserves. 4 City Budget SUMMARY REVENUE AND EXPENDITURES - FY 2009-2010 Fund Revenue Expend. Surplus (Deficit) General Fund 5,280,6 74 (5,222,845) 57,829 Special Revenue 3,756,795 (3,472,931) 283,864 Capital Project 1,107,500 (1,107,500) 0 Total 10,144,969 (9,803,276) 341,693 CITY REVENUES by category consist of: Revenue General Special Capital Total Category Fund Revenue Projects Fund Taxes 2,412,345 0 0 2,412,345 Lic/Permits 750,010 0 0 750,010, Intergov. 59,500 524,327 58,000 641,827 Interest/Rents 698,500 97,950 0 796,450 Other 210,475 80,335 0 290,810 Grants 4,177 300,000 566,000 870,177 Fees/Charges 545,667 1,475,300 0 2,020,9671 DIF 0 947,965 0 947,965 Resid. Rec Agr 600,000 0 0 600,000 ' Transfers- 0 330,918 483,500 814,418 Out Total Revenue 5,280,674 3,756,795 1,107,500 10,144,969 CITY EXPENDITURES by c tegory consist of: Expenditure General Special Revenue Capital Total Category Fund Fund Projects 1 SalariesBenefits 2,597,665 130,295 0 2,727,960 Maintenance 758,321 1,359,666 0 2,1';17,987 Operations Travel/Training 24,800 0 0 124,800 Prof/Contracts 2,156,092 715,384 0 2,8,71,476 Depreciation 0 90,000 ;90,000 Debt Service 0 0 0 1 0 Capital Proj/Other 68,200 275,000 1,107,500 1,450,700 Cost Alloc (568,151) 274,086 0 (294,065) Transfers-Out 185,918 628,500 0 914,418 Total 5,222,845 3,472,931 1,107,500 9,803,276 Expenditures 5 FY 2009-10 Estimated Revenues and Expenditures and CHANGES IN AVAILABLE FUND BALANCE RESERVE - FY 2009-2010 Fund Beginning Revenue Expend. Ending Fund Available Balance Fund Balance General Fund 2,831,483 5,280,674 (5,222,845) 2,889,313 Special Rev Funds Street Fund 765,661 1,003,082 (247,500) 1,521,243 Storm Drain 77,659 31,800 (12,276) 97,183 Park Fund 203,775 13,965 (92,821) 124,919 AB3229 COPS 0 298,418 (298,418) 0 Air Quality Fund 36,077 15,730 (41,100) 10,707 Gas Tax Fund 4 356,765 (335,315) 21,454 Traffic Safety 12,815 66,400 (53,750) 25,465 Facilities Dev 188,894 23,000 (63,814) 148,080 Measure I 7,847 380,500 (394,955) (6,608) Waste Water 694,886 1,552,800 (1,918,917) 328,769 LLMD 13,509 14,335 (14,065) 13,779 Subtotal Spec Rev 2,001,127 3.756,795 (3,472,931) 2,284,991 i Capital Funds U Bike Lane Fund (1,163) 200,000 (200,000) (1,163) Street Improv (1,182) 327,500 (327,500) (1,182) Barton Bridge (166,262) 580,000 (580,000) (166,262) Subtotal CapFunds (168,607) 1,107,500 (1,107,500) (168,607) Total 4,664,003 10,144,969 (9,803,276) 5,005,696 CHANGES IN DESIGNATED FUND BALANCE RESERVE- FY 2009-2010 Fund Beginning Revenue Expend. Ending Fund Available Balance Fund Balance General Fund 947,244 0 0 947,244 Special Rev Funds Waste Water 1,017,600 1,017,600 Total 1,964,844 0 0 1,964,844 ALTERNATIVE ACTIONS 1) Adopt budget as is; 2) Do not adopt budget; 3) Make changes and adopt budget i 6 FISCAL IMPACT: Adoption of City Budget will result in: • General Fund Revenue $5,280,674 • General Fund Expenditures and Transfer Out $5,222,845 o Change in General Fund Balance of$57,829 o Projected Overall Ending Fund Balance at 6-30-2010 of$3,836,557 o Projected Overall available General Fund Balance Reserve at 6-30-2010 of$2,889,313 o Projected Overall Designated General Fund Balance Reserve at 6-30-2010 of$947,244 ❖ Special Revenue Fund Revenue $3,756,795 ❖ Special Revenue Fund Expenditures and Transfer Out $3,472,931 o Change in Special Revenue Fund Balance of$283,864 o Projected Overall Ending Fund Balance at 6-30-2010 of$3,302,591 o Projected Ending Special Revenue Fund Balance at 6-30-2010 of $2,284,991 o Projected Overall Designated Special Revenue Balance Reserve at 6;30- 2010 of$1,017,600 ✓ Capital Project Revenue/Transfer in of$1,107,500 ✓ Capital Project Expenditures $1,107,500 o Change in Capital Project Fund Balance of $0 o Projected Ending Capital Project Fund Balance at 6-30-2010 of <$168,607> #. Overall CITY combined Revenue and Transfer in of$10,144'969 4- Overall CITY combined Expenditures and Transfer out of $9,803,276 .- Overall Change in CITY combined Fund Balance Reserve of $341,693 � Projected Overall available CITY combined Fund Balance Reserve at 6-30-2010 of$5,005,696 4- Projected Overall Designated CITY combined Fund Balance Reserve at 6-30-2010 of$1,964,844 i Staff Recommends that Council: 1) Adopt FY 2009-10 Budget Resolution: i Enclosures: ✓ Projected Fund Balances FY 2009-10— City and CRA ✓ Revenue Summary All Funds FY 2009-10 ✓ Expenditure Summary All Funds FY 2009-10 ✓ FY M09-10 RiitluPt RPenJutinn 6/17/2009 CITY AND CRA OF GRAND TERRACE ANALYSIS OF AVAILABLE FUND BALANCE PROJECTED THROUGH 6/30/2010 Revised Proposed Budget BUDGET Projected BUDGET - BUDGET FY 200940 PROJECTED Available FY 2009-10 FY 2009-10 FY 2009-10 AVAILABLE REVENUES EXPENDITURES FUND & & REVENUES FUND BALANCE TRANSFERS IN TRANSFERS OUT OVER(UNDER) BALANCE CONSERVATIVE EXPENDITURES 6/30/2010 6/30/2009 PROPOSED PROPOSED PROPOSED 10 GENERAL FUND-Undesignated 2,831,483 5,280,674 (5,222,845) 57,830 2,889,313 10 10 GENERAL FUND-Designated 925,558 0 0 0 925,558 10 , 10 GENERAL FUND-CLEEP Reserve 21,686 0 0 0 21,686 10 TOTAL GENERAL FUND 3,718,727 5,280,674 (5,222,845) 57,830 3,836,557 10 11 Street Fund 765,661 1,003,082 (247,500) 755,582 1,521,243 11 12 Storm Drain Fund 77,659 31,800 (12,276) 19,524 97,183 12 13 Park Fund 203,775 13,965 (92,821) (78,856) 124,919 13 14 AB 3229 COPS Fund 0 298,418 (298,4181 (0) - (0) 14 15 Air Quality Improvement Fund 36,077 15,730 (41,100) (25,370) 10,707 15 16 Gas Tax Fund 4 356,765 (335,315) 21,450 21,454 16 17 Traffic Safety Fund 12,815 66,400 (53,750) 12,650 25,465 17 18 TDA Fund 0 0 0 0 0• 18 19 Facilities Development Fund 188,894 23,000 (63,814) (40,614) 148,080 19 - 20 Measure 1 Fund 7,847 380,500 (394,955) (14,455) (6,608) 20 21 Waste Water Disposal Fund 1,712,486 1,552,800 (1,918,917) (366,117) 1,346,369 21 26 LSCPG/LGHTG Assessment Dist 13,509 14,335 (14,065) . 270 13,779 26 28 NPDES FUND 0 0 0 0 0 28 44 Bike Lane Capital Fund (1,163) 200,000 (200,000) 0 (1,163) 44 46 Street Improvement Projects (1,182) 327,500 (327,500) 0 (1,182) 46 47 Barton Rd. Bridge Project (166,262) 580,000 (080,000) 0 (166,262) 47 TOTAL OTHER FUNDS 2,850,120 4,864,295 4 580 431 283,864 3,133,984 32 CAPITAL PROJECTS FUND (291,670) 946,000 (653,271) 292,729 1,059 32 33 DEBT SERVICE FUND 6,621,368 6,547,487 (5,658,364) 889,123 7,510,491 33 34 LOW&MODERATE HOUSING 1,422,021 1,579,599 2,003 166 (423,567) 996,464 34 TOTAL CRA FUNDS 7,751,719 9,073,086 8,314 801 758,285 8,510,004 TOTAL-ALL FUNDS 14,380,566 19,218,055 (18,118,077) 1,099,978 15,480,544 J Version 5A 1 CITY OF GRAND TERRACE FISCAL YEAR 2009-2010 BUDGET ESTIMATED REVENUE SUMMARY - ALL FUNDS (7 Months) BUDGET ACCOUNT 2004-2006 2005-2006 2006-2007 2007-2008 2008 2009 2008-2009 2009-2010 NUMBER TITLE ACTUAL ACTUAL ACTUAL ACTUAL ESTIMATED TO 0228-08 ESTIMATED GENERALFUND TOTAL-PROPERTY TAXES 434,979 1,325,046 1,446,977 1,497,163 1,492,946 756,702 _ 1,481,500 TOTAL-LICENSE&PERMITS 640,191 834,641 705,323 690,433 725,251 264,294 664,800 TOTAL-OTHER TAXES 1,607,294 1,167,742 1,071,311 1,002,684 1,035,000 543,989 986,905 TOTAL-INTERGOVERNMENTAL 55,611 53.859 79,418 699,260 85,515 22,324 63,677 TOTAL-CHARGES FOR SERVICES 51,814 167AN 207,290 _ 174,311 126,800 97.761 106,100 TOTAL-PLANNING FEES 57.916 101,308 68,241 29,617 22,776 16,750 22,900 TOTAL-RECREATION FEES 3.611 11,637 10,674 7,660 11,300 4,685 11,300 TOTAL-CHILD CARE FEES 908,963 1,010,302 988,670 948,967 1,126,797 584,629 1,042,017 TOTAL-USE FEES 26,603 12,783 13,195 6,641 10,680 6,962 2,600 TOTAL-FINES&FORFEITURES 29,031 36,500 28,986 41,234 31,195 16,923 30,760 TOTAL-USE OF MONEYIPROPERTY 80,634 683,808 232,906 240,269 343,150 78,605 98,600 TOTAL-MISCELLANEOUS REVENUE 68.830 289,786 116,083 525,002 14,368 1,868 24,000 TOTAL-OTHER SOURCES OF REVENUE 36,890 16,280 10A90 11,228 300,000 300,000 755,726 GENERAL FUND TOTAL REVENUE 4,000,366 6,699,992 4,967,544 6,874,339 5,325.758 2,694,482 6,280,674 STREET FUND TOTAL IOA90 235,406 245,106 425,121 817,690 63,776 1,003,082 STORM DRAIN FUND TOTAL 3,000 61,486 32,168 83,782 37,430 1,033 31,800 PARK FUND TOTAL 2,999 49,455 100,802 583,832 35,847 6,276 13,966 SLESF AB3229 COPS FUND TOTAL 203,723 251,944 261,430 292,673 299,045 60,965 298,418 AIR QUALITY IMPROVEMENT FUND TOTAL 41,919 15,384 15,842 16,352 16,485 4,363 16,730 GAS TAX FUND TOTAL 396,248 393,282 269,999 271,386 467,629 100,697 366,765 TRAFFIC SAFETY FUND TOTAL 58,711 65,461 64,099 65,636 57,031 33,072 66,400 TDA FUND TOTAL 0 0 0 0 0 0 0 FACILITIES FUND TOTAL 0 7" 27,324 197,564 20,781 2,493 23,000 MEASURE"I"FUND TOTAL 180,878 204,174 206,814 192,773 196,364 101,911 380,600 WASTEWATER DISPOSAL FUND TOTAL 1,662AM 1.811.50 1,609,436 1,646,981 1,629,569 826,766 1,562,800 LANDSCAPE 3 LIGHTING DIST FUND TOTAL 12,461 IOA40 6,164 14A56 12,326 6,887 14,336 REDEVELOPMENT AGENCY CRA CAPITAL PROJECT FUND TOTAL 606,212 202,844 2,895A" 719,870 1,963,698 34,124 946,000 CRA DEBT SERVICE FUND TOTAL-PROPERTY TAXES 4,317.536 4,928A19 5.244,113 5,671,691 6,626,140 2,816,686 6,783,910 TOTAL-OTHER REVENUE 9A63,057 773,671 840,690 893,366 770,302 72,587 763,577 CRA DEBT SERVICE FUND TOTAL 13,770,692 5,701,990 6.084,003 6,565,046 6,395,442 2,889,273 6,647,487 LOW/MOD INCOME HOUSING FUND TOTAL 5,443,186 1,630 796 2,149,077 1,986,186 '1,662,875 753,234 1,579,599 TOTAL REDEVELOPMENT AGENCY 19,718,990 7,435,630 11,129,334 9,270,102 9,802,016 3,676,631 9,073,086 BIKE LANE FUND TOTAL 44 0 0 85,004 26,696 129,711 0 200,000 STREET CAPITAL FUND TOTAL 46 0 0 1,342,907 600,000 60,000 0 327,600 BARTON BRIDGE FUND TOTAL 47 0 2,446 0 0 580,000 0 _ 580,000 TOTAL CAPITA[FIROJECT 1-UffDS- 0 2,446 1,427,911 626,696 769711 0 1,107,600 GRAND TOTAL Diu= �:?� llaiuu49 Mull AMM 5 C' �J V5A CITY AND CRA OF GRAND TERRACE PRELIMINARY BUDGET FY 2009-10 SUMMARY OF EXPENDITURES - ALL_FUNDS (INCLUDING TRANSFERS) 2008-M 2008.09 2009-10 2004.05 2005-08 2006.07 2007-08 REVISED EXPENDED DEFT Expenditures ACTUAL ACTUAL ACTUAL ACTUAL BUDGET THRU 02-28-09 REQUEST 10 GENERAL FUND 3,933,844 4,152,117 5,704,841 6,902,628 6,383,610 4,419,516 5,222,845 11 Street Fund 151,503 162,704 111,479 20,000 129,683 5,514 247,500 12 Storm Drain Fund 22,159 15,776 15,385 10,289 17,165 18,041 12,276 13 Park Fund 22,628 . 0 146,190 283,282 112,498 44,588 92,821 14 AB 3229 COPS Fund 224,866 251,944 261,436 292,574 299,045 289,491 298,418 15 Air Quality Improvement Fund 53,089 8,174 971 1,008 28,449 544 41,100 16 Gas Tax Fund 329,170 329,149 393,307 432,404 50612" 288,799 335,315 17 Traffic Safety Fund 110,997 134,698 49,580 62,379 57,031 5,644 53,750 18 TDA Fund 0 0 0 0 0 0 0 19 Facilities Development Fund 0 0 0 27,762 17,757 1,378 63,814 20 Measure I Fund 166,187 156,249 88,623 393,180 285,931 143,033 394,955 21 Waste Water Disposal Fund 1,630,655 1,623,702 1,518,726 1,620,359 1,735,373 494,264 1,918,917 26 LSCPG/LGHTG Assessment Dist 7,391 3,334 9,752 7,905 14,350 5,726 14,065 28 NPDES FUND 0 0 0 0 0 0 0 44 Bike Lane Capital Fund 3,380 - 0 84,370 34,634 127,131 66,462 200,000 46 Street Improvement Projects 520 785 1,320,168 601,182 60,000 0 327,500 47 Barton Rd. Bridge Project 485 24,459 837 500 5809000 25,033 - 580,000 TOTAL OTHER FUNDS 2,723,030 2,710,974 4,000,824 3,787,458 3,970,697 1,388,517 4,580,431 32 CAPITAL PROJECTS FUND 717,600 1,837,578 1,413,614 509,671 1,572,902 516,341 653,271 33 DEBT SERVICE FUND 12,037,474 4,672,507 4,404,004 5,037,840 6,803,828 2,226,888 5,658,364 34 LOW& MODERATE HOUSING 968,508 3,707,600 1,977,499 4,509,793 4,121,434 2,757,208 2,003,166 TOTAL CRA FUNDS 13,723 582 10,217,685 7,795,117 10,057,304 1 12,498,164 5,500,4371 8,314.801 TOTAL-ALL FUNDS 20,380,456 17,080.776 17.500,782 19,747,390 1 22,852,471 1 11,308,4701 18,118,077 l RESOLUTION NO. 2009- A RESOLUTION OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING A BUDGET FOR FISCAL YEAR 2009-10 WHEREAS, the City of Grand Terrace is a general law city incorporated under the laws of the State of California; and WHEREAS, the City of Grand Terrace operates on a fiscal calendar year beginning on July I" of each year and ending on June 301h of the next year; and WHEREAS, the City of Grand Terrace wishes to adopt a budget for the fiscal year 2009-10 for expenditures based on estimated revenues and available fund balance reserves; and i WHEREAS, staff has presented an operating and capital budget containing the General Fund, Special Revenue Funds and Capital Funds to meet the needs of the citizens of the City of Grand Terrace; and WHEREAS, the City Council is aware of the State of California budget problems and the May 121h failure of state budget initiatives and is adopting this budget under the assumption that the state will not take or divert local funding at this time; and NOW THEREFORE, the City Council of the City of Grand Terrace does hereby resolve, declare, determine, and order as follows: Section 1. The budget for Fiscal Year 2009-10, a copy of which has been tiled in the City Clerk's office, is hereby adopted with projected beginning General Fund Balance reserves of$3,778, 727, including designated funds, total General Fund expenditures of$5,222,845 including transfers-out, tobe funded by estimated revenues of$5,280,674 including transfers-in. Special Revenue Fund budget is adopted with beginning Special Revenue Fund Balance reserves of$3,018,727, including designated finds, total Special Revenue Fund expenditures of$3,472,931 including transfers-out, to be funded by estimated revenues of$3,756,795 including transfers-in. Capital Projects Fund budget is adopted with beginning Capital Projects Fund Balance deficit of$168,607, including designated finds, total Capital Projects Fund expenditures of$1,107,500 including transfers-out, to be funded by estimated revenues of$1,107,500 including transfer ss-in. 1 I A summary of the City Budget by fund is referenced in "Exhibit A 1r Section 2. City Council authorizes the City Manager to make budget adjustments to the adopted budget to reallocate appropriations between departmental activities. Only the City Council, by motion and affirmative majority vote, by minute action or by resolution, may make increases and decreases in estimated fund revenues and fund appropriations. PASSED, APPROVED, AND ADOPTED this 23rd day of June, 2009. Attest: City Clerk Mayor City of Grand Terrace 11 i 1 RESOLUTION NO. 2009- I A RESOLUTION OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING A BUDGET FOR FISCAL YEAR 2009-10 I "EXHIBIT A" 1 FY 2009-10 Estimated Revenues and Expenditures and CHANGES IN AVAILABLE FUND BALANCE RESERVE — FY 2009-2010 Fund Beginning Revenue Expend. Ending Fund Available Balance Fund Balance General Fund 2,831,483 5,280,674 (5,222,845) 2,889,313 Special Rev Funds Street Fund 765,661 1,003,082 (247,500) 1,521,243 Storm Drain 77,659 31,800 (12,276) 97,183 Park Fund 203,775 13,965 (92,821) 124,9191 AB3229 COPS 0 298,418 (298,418) 0 Air Quality Fund 36,077 15,730 (41,100) 10,70711 Gas Tax Fund 4 356,765 (335,315) 21,454 Traffic Safety 12,815 66,400 (53,750) 25,465 ^` Facilities Dev 188,894 23,000 (63,814) 148,080 j Measure I 7,847 380,500 (394,955) (6,608) Waste Water 694,886 1,552,800 (1,918,917) 328,769 LLMD 13,509 14,335 (14,065) 13,779 Subtotal Spec Rev 2,001,127 3.756,795 (3,472,931) 2,284,991 Capital Funds Bike Lane Fund (1,163) 200,000 (200,000) (1,163) j Street Improv (1,182) 327,500 (327,500) (1,182) Barton Bridge (166,262) 580,000 (580,000) (166,262) 1 Subtotal CapFunds (168,607) 1,107,500 (1,107,500) (168,607)1 Total 1 4,664,003 1 10,144,969 (9,803,276) 5,005,6961 i CHANGES IN DESIGNATED FUND BALANCE RESERVE — FY 2009-2010 Fund Beginning Revenue Expend. Ending Fund Available Balance Fund Balance j General Fund 947,244 0 0 947,244 Special Rev Funds it r Waste Water 1,017,600 1,017,600 Total 1,964,844 01 0 ' 1,964,844 i 1: Resolution No. A RESOLUTION AUTHORIZING THE CITY ATTORNEY TO COOPERATE WITH THE LEAGUE OF CALIFORNIA CITIES, OTHER CITIES AND COUNTIES IN LITIGATION CHALLENGING THE CONSTITUTIONALITY OF ANY SEIZURE BY STATE GOVERNMENT OF THE CITY'S STREET MAINTENANCE FUNDS ! ? WHEREAS, the.current economic crisis has placed cities under incredible financial pressure and caused them to make painful budget cuts, including layoffs and furloughs of city workers, decreasing maintenance and operations of public facilities, and reductions in direct services to keep spending in line with declining revenues; and ;WHEREAS, since the early 1990s the state government of California has seized over$10 billion of city property tax revenues statewide, now amounting to over$900 million'each year, to fund the state budget even after deducting public safety program payments to cities by the state; and WHEREAS, in his proposed FY 2009-10 budget the Governor has proposed transferring $1 billion of local gas taxes and weight fees to the state general fund to balance the state budget, and over$700 million in local gas taxes permanently in future years, immediately jeopardizing the ability of the City to maintain the City's streets, f bridges, traffic signals, streetlights, sidewalks and related traffic safety facilities for the use of the motoring public; and WHEREAS, the loss of almost all of the City's gas tax funds will seriously compromise the City's ability to perform critical traffic safety related street maintenance, including,but not limited to, drastically curtailing patching, resurfacing, street lighting/traffic signal maintenance, payment of electricity costs for street lights and signals, bridge maintenance and repair, sidewalk and curb ramp maintenance and repair, and more; and WHEREAS, some cities report to the League of California Cities that they will be forced to eliminate part or all of their street maintenance operations while others will be forced to cut back in other areas (including public safety staffing levels) to use city general funds for basic street repair and maintenance. Furthermore, cities expect that liability damage awards will mount as basic maintenance is ignored and traffic accidents, injuries and deaths increase; and WHEREAS, in both Proposition 5 in 1974 and Proposition 2 in 1998 the voters of our state overwhelmingly imposed restriction on the state's ability to do what the Governor has proposed, and any effort to permanently,divert the local share of the gas tax would violate the state constitution and the will of the voters; and COUNCIL AGENDA ITEM NO.3E 1 i WHEREAS, cities and counties maintain 81%of the state road network while the state directly maintains just 8%; and i WHEREAS, ongoing street maintenance is a significant public safety concern. A city's failure to maintain its street pavement (potholes filling, sealing, overlays, etch, traffic signals, signs, and street lights has a direct correlation to traffic accidents, injuries and deaths; and WHEREAS,according to a recent statewide needs assessment on a scale of zero (failed)to 100 (excellent), the statewide average pavement condition index (PCI) is 68, or T "at risk." Local streets and roads will fall to "poor" condition(Score of 48) by 2033 based on existing funding levels available to cities and counties.. 1 NOW,THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF Grand Terrace hereby directs the City Attorney to take all necessary steps to cooperate'with the League of California Cities, other cities and counties in supporting litigation against the state of California if the legislature enacts and the governor signs into law legislation that unconstitutionally diverts the City's share of funding from the Highway Users Tax Account(HUTA), also known as the "gas tax,"to fund the state general fund; and RESOLVED FURTHER,that the city manager or clerk shall send this j resolution with an accompanying letter from the mayor to the Governor and each legislator, informing them in the clearest of terms of the City's adamant resolve to(oppose any effort to frustrate the will of the electorate as expressed in Proposition 5 (1974� and Proposition 8 (1998) concerning the proper use and allocation of the gas tax; and I RESOLVED FURTHER,that a copy of this Resolution shall be sent by the city manager or clerk to the League of California Cities, the local chamber of commerce, and other community groups whose members ate affected by this proposal to create unsafe conditions on the streets of our City for pedestrians, bicyclists and motorists. ADOPTED this 23rd day of June, 2009. Mayor of the City of Grand Terrace California Statewide Local Streets and Roads Needs Assessment. Nichols Consulting Engineers,Chtd. (2008),sponsored by the League of California Cities,California State Association of Counties and County Engineers Association of California. i i Attest: City Clerk of the City of Grand Terrace I, BRENDA MESA, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No. 2009- was introduced and adopted at a regular meeting of the _ City Council of the City of Grand Terrace held on the 23`d day of June, 2009, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Brenda Mesa, City Clerk Approved as to form: City Attorney 3 STAFF REPORT CITY MANAGER'S OFFICE CRA ITEM () COUNCIL ITEM(X) MEETING DATE: June 23,2009 SUBJECT: AMENDMENT OF PERSONNEL RULES AND REGULATIONS AND EMPLOYE BENEFITS TO ADOPT A RESOLUTION AMENDING,RESOLUTION NO.2000-24,AND ADOPTING RULES AND REGULATIONS FOR-THE ADMINISTRATION OF PERSONNEL MATTERS. RESCIND ACTION CC-2004-53 TO IMPLEMENT A HEALTH REIMBURSEMENT ACCOUNT FOR EACH ELIGIBLE EMPLOYEE OF THE CITY OF GRAND TERRACE. FUNDING REQUIRED: YES () NO (X) Normal Advancement The Rules and Regulations state that after an employee successfully completes six-months of service, he is "- eligible for an increase,however, Sr. Staff thinks that a wage increase would be a more appropriate action to consider after the employee has passed the one year probationary period. Staff is recommending that Council revise Resolution 2000-24, Rule IV paragraph 6 by deleting the verbiage"six months of service"and replace it with,the initial one year probation period. Effective July I", 2009. Vacation Credit Accumulation The Rules and Regulations state that"Employees may not accrue more than the equivalent of two full annual vacations." It was discussed with Sr. Staff to recommend a revision of the rules based on the fact that we are a very small staff and having enough coverage to serve the public is a daily concern of management. Because we have a dedicated staff we would like to increase the maximum amount allowed to be carried so that staff is not forced to take unplanned time off due to reaching the max allowed. Staff is recommending that Council revise Resolution 2000-24, Rule VI paragraph 4 by deleting the word, "two", and replacing it with, three. The Finance Dept. has requested that the effective date for this to commence June 29, 2009. In an effort to assist in balancing the budget it was discussed at the Sr. Staff level to make concessions on several benefits this fiscal year. COUNCIL AGENDA ITEM NO.1 � I Employee Personal Computer Program The computer loan program was instituted in 1991. This item was discussed with Sr. Staff on April 2, 2009 that due to the fact that our policy only allows for a 2 yr. loan every 5 years, that the program be deemed obsolete and discontinued. 4 } Staff is recommending that Council rescind, in part, Resolution No. 2000-24, Rule V,paragraph 2, and eliminate the Employee Personal Computer Program effective July 1, 2009. 1 Birthday Bonus Each FTE and regular PT employee receives a birthday bonus check on their birthday each year. This was discussed at the Sr. Staff level on March 10, 2009, as a concession due to the budget defici this fiscal year. Staff is recommending that Council rescind, in part, Resolution No. 2000-24, Rule V,paragraph 3, and eliminate the Birthday Bonus program effective July 1, 2009. 105 HRA(Health Reimbursement Account) i I This program began on July 1, 2004 and is generically referred to as Medical Reimbursement. At the March 10, 2009 Staff Meeting Sr. Staff discussed terminating the Medical Reimbursement benefit. — Employees were notified on April 17, 2009 that budgeting for the medical reimbursement program was ric being recommended in the 09-10 fiscal year. The 60 day notice required by the Basic Plan Document was followed and the Employer notified the Administrator by letter of intent on May 1, 2009 that the plan was being discontinued. The termination of the plan was reviewed by the City Attorney on May 7, 2009. This is a calendar year benefit and any unused portion will be forfeited back to the City 1 Staff is recommending that Council rescind their Action CC-2004-53 of May 27, 2004 andl discontinue the 105 HRA plan as an employee benefit with a termination date of July 1, 2009. I STAFF RECOMMENDATION: STAFF RECOMMENDS COUNCIL ADOPT RESOLUTION 2009 AMENDING RESOLUTION 2000-24, AND ADOPTING RULES AND REGULATIONS FOR THE ADMINISTRATION OF PERSONNLE MATTERS, OF THE CITY OF GRAND TERRACE, CALIFORNIA. STAFF RECOMMENDS COUNCIL RESCIND ACTION CC-2004-53 OF MAY 27, 2004 AND DISCONTINUE THE 105 HRA PLAN AS AN EMPLOYEE BENEFIT WITH A TERMINATION DATE OF JULY 1, 2009. i RESOLUTION NO. 2009- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE,CALIFORNIA,AMENDING RESOLUTION NO. 2000-24 AND ADOPTING RULES AND REGULATIONS FOR THE ADMINISTRATION OF PERSONNEL MATTERS WHEREAS, the City Council of the City of Grand Terrace has determined the need to amend the rules and regulations for the administration of personnel matters; i NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE U does hereby resolve, declare determine, and order the following: SECTION 1. Rule IV paragraph 6 is hereby amended to read: Normal Advancements - After an employee successfully completes the initial one year probation period, he is eligible for an increase. It is up to his department head to recommend the percentage of increase based on the employee's performance record to the City Manager. Thereafter, increases may be considered at annual evaluation dates. The date that the employee receives his first increase will be the annual evaluation date. Employees that demonstrate consistent superior performance may receive advancements outside the normal procedure based on the merit of the performance. Effective July 1, 2009. SECTION 2. Rule VI paragraph 4 is hereby amended to read: Vacation Credit Accumulation-Employees may not accrue more than the equivalent of three full annual vacations. In the event an employee who has served continuously for at least twelve months does not take all of the vacation to which he is entitled in any year, he shall be allowed to accumulate the balance, to be taken in a subsequent year. Provided, further that no employees shall be granted in any one year more vacation than the equivalent of two full annual vacations, except in the case of separation from the service as hereinafter provided. Further, each employee shall take a minimum of five consecutive work days off each fiscal year. Effective June 29, 2009. SECTION 3. Rule V paragraph 2, Employee Personal Computer Program, is hereby rescinded in its entirety. Effective July 1, 2009. SECTION 4. Rule V paragraph 3, Birthday Bonus, is hereby rescinded in its entirety. Effective July 1, 2009. PASSED, APPROVED AND ADOPTED this 23`d day of June, 2009. Mayor of the City of Grand Terrace 3 i I ATTEST: i City Clerk of the City of Grand Terrace I, BRENDA MESA, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No. 2009- was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 23rd day of June, 2009, by the-following vote: AYES: NOES: i ABSENT: ABSTAIN: Brenda Mesa, City Clerk Approved as to form: City Attorney i I i i I L� RESOLUTION NO.2000- 24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, RESCINDING RESOLUTION NO. 98-29, AND AMENDING THE RULES AND REGULATIONS FOR THE ADMINISTRATION OF PERSONNEL MATTERS PURSUANT TO THE GRAND TERRACE MUNICIPAL CODE SECTION 2.24.090 WHEREAS,section 2.24.090 of the Grand Terrace Municipal Code states Personnel Rules and Regulations and amendments hereto shall be adopted by Council Resolution; and WHEREAS, the Rules and Regulations have bden amended to include adding definitions for regular salary and regular salary for termination purposes,to bring the classification list up-to- date, to rewrite procedures for the City ID Cards and the Facility Key Policy, and to delete the Education Incentive Policy. NOW, THEREFORE, the City Council of the City of Grand Terrace DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1 Rescission-That Resolution 98-29 is hereby rescinded. - Section 2. That said City Council hereby approved the amended Rules and Regulations for the Administration of Personnel Matters incorporated herein as Exhibit"A." PASSED,APPROVED AND ADOPTED this 10*day of August,2000. ATTEST: City Clerk of the City of Gr d Terrace M20f; of a Cit4ofG and Terrace and of the City Council thereof. An the City Council thereof. I, BRENDA STANFILL, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 10'h day of August, 2000, by the following vote: AYES: Councilmembers Hilkey, Garcia, and Larkin; Mayor Pro Tem Buchanan and Mayor Matteson NOES: None ABSENT: None ABSTAIN: None City ClerkApproved as to rm: 41 City Attorney _ fI I RULE IV i COMPENSATION i Application of Rates - The City has a policy of open salary ranges which define the minimum, midpoint and maximum for each job. Employees occupying a position in the classified service shall be paid a salary or wage established for that position class under the approved compensation schedule, based on their time worked. j i Compensation Schedule - The compensation schedule for classified service shall include a list of classes of positions by occupational group,with the standard rates of compensation shown for each class. i All rates shown on the official compensation schedule and conditions set forth therein are in full payment for services rendered and are intended to cover full payment for the number of hours regularly worked in each class. i Application of the Compensation Schedule-The salary range, as set forth for each classification, shall be applied in accordance with the following: i New Appointments -Each position has a salary range which consists of minimum, midpoint and maximum. The minimum rate for the position shall generally apply to new employees with little or no experience within his classification. When qualifications and experience warrant,an original appointment or reinstatement may be made at a rate other than the minimum rate. The City Manager will decide the new appointment salary based, in part, on the experience and training of each employee involved and according to the needs of the City. i Normal Advancements - After an employee successfully completes-six-mew of serxiw,he is eligible for an increase. It is up to his department head to recommend the percentage of increase based on the employee's performance record to the City Manager. Thereafter, increases may be considered at annual evaluation dates. The date that the employee receives his first increase will be the annual evaluation date. Employees that demonstrate consistent superior performance may receive advancements outside the normal procedure based on the merit of the performance. Advancement Provisions-No salary advancement shall be made so as to exceed any maximum rate established in the compensation schedule for the class to which the advanced employee's position is allocated,except as otherwise may be provided for. Advancement shall not be automatic,but shall depend upon increased service value of an employee to the City as exemplified by the recommendations of his department head, length of service, performance record, special training undertaken, or other pertinent evidence,within the advancement policy established by the compensation 4� RULE VI ADMINISTRATIVE LEAVE-ANNUAL VACATIONS - PERSONAL LEAVE Earned Vacation -Full-Time - Each regular full-time and regular part-time employee who is paid at a biweekly rate and has had continuous full-time active service throughout the year shall be credited with annual vacation with pay according to his.number of years service as follows: { j Vacation Rate- General Service Employ-Each eligible employee shall be credited on a rate of 1/26th of: a. Eighty hours vacation during first, second, third, fourth, and fifth years of service; and b. One hundred and twenty hours during sixth through tenth years of service; and C. One hundred and sixty hours during eleventh and succeeding years of service. Posting of Earned Vacation-Earned vacation will be credited upon completion of the first six months of continuous full-time service and every pay period thereafter. s J Postings will be equal to one twenty-sixth of the applicable yearly earning rates as set forth above under Vacation Rate. Y,ggation Credit Accumulation-Employees may not accrue more than the equivalent of*,fe full annual vacations. In the event an employee who has served continuously for at least twelve months does not take all of the vacation to which he is entitled in any year,he shall be allowed to accumulate the balance,to be taken in a subsequent year. Provided, further that no employees shall be granted in anyone year more vacation than the equivalent of two full annual vacations, except in the case of separation from the service as hereinafter provided. Further, each employee shall take a minimum of five consecutive work days off each fiscal year. Regular Part-Time Employes - Accrue vacation time according to the number of hours worked. Unused Vacation at Separation-At the time a regular full-time or regular part-time employee who has served continuously for at least six months is separated from the City service, whether voluntarily or involuntarily, he shall be granted all of the unused vacation to which he is entitled based upon his active service in prior years ' 7 that any child care expenses utilized from the cafeteria benefit plan would not qualify for childcare credits or deductions from a tax standpoint. Employees may also use deferred compensation to pay for child care through other State-licensed child care facilities. i mplovee Personal Computer Program-A no-interest loan program is available for regular full-time and part-time employees after completion of six months'probation to take out a loan for the purchase of a personal computer. There is a$2,000 limit with a requirement of 10%down. The balance is to be paid back to City over a two-year period by payroll deduction. A packet describing the _ program and requirements may be obtained from the Finance Director. wthday Bonus - Regular full-time, part-time and Child Care City employees receive a birthday bonus in the form of a letter from the City Council and City Manager which includes. Icheck for $50. The employee must have completed six months with the City before receiving this)bonus. i { i I i i I ' I i CITY OF GRAND TERRACE CITY COUNCIL MINUTES r REGULAR MEETING-MAY 27,2004 A regular meeting of the City Council of the City of Grand Terrace was called to order in the Council Chambers,Grand Terrace Civic Center,22795 Barton Road,Grand Terrace,California,on May 27, 2004, at 6:36 p.m. i ' PRESENT: Herman Hilkey,Mayor Maryetta Ferr6,Mayor Pro Tern Lee Ann Garcia, Councilmember Don Larkin, Councilmember Brenda Stanfill, City Clerk Steve Berry, Assistant City Manager AM= Larry Ronnow,Finance Director _ Lt. Hector Guerra, Sheriff's Department ABSENT: Bea Cortes, Councilmember Tom Schwab, City Manager A Jerry Glander, Building& Safety Director Gary Koontz, Community Development Director John Harper, City Attorney f The City Council meeting was opened with invocation by Mayor Pro Tern Maryetta Ferre,followed by the Pledge of Allegiance led by Councilwoman Lee Ann Garcia. ITEM TO DELETE Assistant City Manager Berry indicted that he would like to pull item 8A. Request for "ABC" Off-sale Liquor Licenses and agendize it for June 10, 2004. SPECIAL PRESENTATIONS 2A. Grand Terrace Elementary School Water Awareness Poster Contest Winners Don Hough,Riverside Highland Water Co. introduced Jim Marshall, Principal of Grand Terrace Elementary School. Jim Marshall, Principal of Grand Terrace Elementary School, thanked Riverside Highland Water Company. He introduced the winners of the Water Awareness Poster Contest. He announced that Erica Pena was the Grand Prize Winner. He introduced some of the teachers that were in attendance. He thanked the teachers and .� parents for their support. q I i ; Council Minutes May 27,2004 Page 2 I 2B. Proclamation-Richard Rollins, Grand Terrace Grand Marshal Grand Terrace Days Parade I Mayor Hilkey read a Proclamation, proclaiming Richard Rollins as the Grand Marshal of the 2004 Grand Terrace Days Parade and honor his lifetime of dedication to our Country and our City. He presented the proclamation to Richard Rollins. Richard Rollins, expressed his gratitude and thanked the Councils for the Proclamation. i CONSENT CALENDAR ; CC-2004-50 MOTION BY COUNCILMEMBERLARKIN,SECOND BY COUNCILMEMBER GARCIA,CARRIED 4-0-1-0(COUNCILMEMBER CORTES WAS ABSENT),to approve the following consent calendar items: 3A. Approval of Check Register Dated May 27, 2004 1 3B. Ratify 05-27-2004 CRA Action J 3C. Waive Full Reading of Ordinances on Agenda 3D. Approval of 05-13-2004 Minutes 3E. 2004-2005 City of Grand Terrace Budget Resolution 1 3F. Resolution Expressing the City Council's Support for Senate Bill 1397 (Escutia), Which Would Enact the Locomotive Emissions Reduction and Mitigation Program PUBLIC COMMENT Mamie Burket, stated that she was given a 1960's quilt from a friend. She indicated that the quilt will be raffled at Grand Terrace Days. All proceeds will go to the Grand Terrace Library. 1 J Patricia Farley,12513 Michigan Street,expressed her concerns with the Outdoor Adventures Center project and the reports that have been done on it. She is adamantly opposed to the project. Virginia Harford, 11825 Arliss Way, indicated that although she supports the Outdoor Adventures Center project, she has some concerns. Bill Hays, 22114 De Berry Street, indicated that he is opposed to the Outdoor Adventures Center Project and expressed his concerns. Larry Leathers, 12269 Michigan Street, expressed his concerns with the many projects that _ i /0 Council Minutes a May 27,2004 Page 3 are being proposed in the City and the effects that they will have on the community. He indicated that traffic is currently terrible on Michigan. Mike Shaw, 12286 Michigan, expressed his concern with the Outdoor Adventures Center project. He stated that the traffic on Michigan is terrible. Frank Guzman, 23202 Glendora Drive, stated that if the Council is truly representing the residents of Grand Terrace, he suggests that they survey the Citizens of Grand Terrace on what their thoughts are with regards to the proposed Outdoor Adventures Center project. He indicated that he is opposed to the proposed project. ORAL REPORTS 5A. Committee Reports 1. Emergency Operations Committee A. Minutes of 04-06-2004 CC-2004-51 MOTION BY COUNCILMEMBER LARKIN, SECOND BY MAYOR PRO TEM H}; FERRE, CARRIED 4-0-1-0 (COUNCILMEMBER CORTES WAS ABSENT), to accept the April 6, 2004 Minutes of the Emergency Operations Committee. 2. Crime Prevention Committee A. Minutes 04-12-2004 CC-2004-52 MOTION BY MAYOR PRO TEM FERRE, SECOND BY COUNCILMEM 3ER GARCIA,CARRIED 4-0-1-0(COUNCILMEMBER CORTES WAS ABSENT),to accept the April 12, 2004 Minutes of the Crime Prevention Committee. COUNCIL REPORTS Councilmember Larkin,reported that he is looking forward to Grand Terrace Days that will be held on Saturday, June 5, 2004. Mayor Pro Tern Ferre,requested that Assistant City Manager Berry tell everyone about the upcoming Grand Terrace Days Event. , Assistant City Manager Berry, gave a brief overview on the events that will take place at Grand Terrace Days. Mayor Pro Tem Ferre, reported that she attended the Community Foundation reception on Wednesday, May 19`h at the March Field,Museum, which was very nice. She attended the i 1 Council Minutes May 27,2004 ; } Page 4 Measure B Citizens Oversight Committee Meeting that was held. The Committee received the consolidated expenditure report using bond funds as well as a facilities planning and construction report from the facilities director for the Colton School District. jThe High School is still on schedule with the target date being 2007 for opening. The next meeting of the Measure B Committee is August 180' at 4:30 p.m. at the School District;Board of Education Board Room. Councilmember Garcia, indicated that she will be at Grand Terrace Days. She encouraged everyone to attend. On July 31"The Foundation will be painting the gage canal wall. She indicated that the Senior Newsletter is an excellent source of information. On September 16`h there is an event called Celebrating Seniors Day that will be held at the National Orange Show. She thanked the residents for coming out and letting the Council know how, -they feel and appreciates all of their comments. She truly wants to do what is in the best interest of the Community and to maintain the excellent quality of life here and in order to do that we need to bring in additional revenue sources. Mayor Hilkey, stated that he mails the Grand Terrace Senior Newsletter regularly to his mom. He reported that he and Assistant City Manager Berry attended a clean air awards that was put on by the American Lung Association. Grand Terrace received a Clean Air Award from the American Lung Association for endorsing Clean Air and for buying vehicles that , are good for clean air. He reported that Grand Terrace Days is the day for Grand Terrace. It was almost lost a few years ago due to budget cuts and it is good to see it come back bigger and better than ever. He stated that the people of Grand Terrace need to differentiate the things that they will hear over the next few months. The community needs to sort out whether or not the things that they hear are truly directed towards the good of the community or they are self-serving for a specific individual. It is going to be a very interesting next couple of months. j PUBLIC HEARING -None UNFINISHED BUSINESS -None I CLOSED SESSION 9A. Meet & Confer/Employee Negotiations Mayor Hilkey announced that the Council met in Closed Session to discuss Meet & Confer/Employee Negotiations. CC-2004-53 MOTION BY COUNCILMEMBER LARKIN,SECOND BY COUNCILMEMBER GARCIA,CARRIED 4-0-1-0(COUNCILMEMBER CORTES WAS ABSENT),to accept staffs recommendation to set up and implement a health reimbursement i i /7 Council Minutes May 27,2004 Page 5 account for each employee that qualifies and to begin not later than July 1, 2004 or when the plan documents have been executed and procedures are in place in the personnel office for facilitating this additional employee benefit. NEW BUSINESS 8B. Resolution of Intention to Approve the Contract Between the Board of - Administration of the California Public Employees'Retirement System and the City Council of the City of Grand Terrace CC-2004-54 MOTION BY MAYOR PRO TEM FERRE, SECOND BY COUNCILMEMBER GARCIA,CARRIED 4-0-1-0(COUNCILMEMBER CORTES WAS ABSENT),to approve a Resolution of Intention to Approve an Amendment to the Contract Between the Board of Administration of the California Public Employees' Retirement System and the City Council of the City of Grand Terrace to include the following proposed amendments: To provide Section 20042 (One-Year Final Compensation) Section 21024 (Military service Credit as Public Service) Section 21574(Fourth Level 1959 Survivor Benefit Program)for local miscellaneous 1 members ORDER OF ADJOURNMENT Mayor Hilkey adjourned the City Council Meeting at 8:20 p.m., until the next CRA/City Council Meeting which is scheduled to be held on Thursday, June 10, 2004 at 6:30 p.m. jj CITY CLERK of the City of'Grand Terrace MAYOR of the City�bf Grand Terrace /3 STAFF REPORT CITY MANAGER'S OFFICE CRA ITEM () COUNCIL ITEM (X) MEETING DATE: 6/23/09 SUBJECT: Wage and Salary Resolution, Reclassifications, and Job Descriptions for the City of Grand Terrace IJ FUNDING REQUIRED: YES (X) NO () Attached is the proposed Wage and Salary Resolution for the employees of the City of Grand Terrace and job descriptions for any new positions. 1. The creation of a Building and Safety Technician II with a new job description was deemed appropriate due to the increased duties and responsibilities of the position. There is no immediate increase in salary as this simply creates a range that will allow for growth in the future. The present job description for the position will become Building and Safety Technician I. Staff is recommending Council.approve the reclassification of the Building/Safety/Public Works Technician to a Building and Safety Technician II. 2. It is desired that our Maintenance Worker III be moved to the newly created position of Crew Leader due to the elimination of the Maintenance Supervisor position in January 2009 and the need for a supervisor of the maintenance staff. Staff is recommending that our Maintenance Worker III be reclassified to Maintenance Crew Leader. 3. The Maintenance Worker II position on the salary resolution needs alignment due to a mathematical error on the salary numbers following the last salary survey causing the top end of that scale to be low by $17.37/mo. 4. It is desired that one Maintenance Worker II be reclassified to the Maintenance III position and be second in command when necessary. Staff is recommending.Council reclassify one Maintenance II worker to the position of Maintenance III. 5. Senior Center Coordinator. This newly created position is in response to the Blue Moutain Villas Project and the recognition that we were in need of a part time employee to assist with various functions of the Senior Center. Staff is recommending Council approve the job description and wage scale of Senior Center Coordinator. Funding for the new position and the upgraded positions has been provided for in the FY 2009-10 budget. COUNCIL AGENDA ITEM NO.,_` i STAFF RECOMMENDATION: STAFF RECOMMENDS COUNCIL ADOPT RESOLUTION 2009_,A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE,CALIFORNIA,RESCINDING RESOLUTION 2007-21 AND ADJUSTING THE SALARY RANGES FOR THE EMPLOYEES OF THE CITY OF GRAND TERRACE. STAFF RECOMMENDS COUNCIL APPROVE THE RECLASSIFICATIONS, AND JOB DESCRIPTIONS FOR THE EMPLOYEES OF THE CITY OF GRAND TERRACE TO BE EFFECTIVE JULY 1, 2009. I THE CITY OF GRAND TERRACE Building and Safety Technician II DEFINITION The Assistant to the Building Official position encompasses three departments within the city, Building & Safety, Public Works and Housing. This position provides public assistance on the telephone, at the public counter and via the internet to engineers, architects, homeowners and developers by,providing information relating to building and public works construction. DISTINGUISHING CHARACTERISTICS Assistant to the Building Official-This class is distinguished from the Permit Technician by the performance of the full range of duties assigned including independently performing a full range of complex permit issuance and administrative duties. Employees at this level receive only occasional instruction or assistance as new or unusual situations arise, and are fully aware of the operating procedures and policies of the departments. Essential Functions Provide quality customer service to the public at the public counter, over the telephone and via the internet; provide information regarding permit procedures, policies and functions; process building permits, applications and construction documents; provide building and construction valuation based on established standards; respond to inquiries regarding building and plan review, and common code issues based on numerous State mandated codes adopted by the City. Maintain permit applications and drawings for active plan checks; compile and maintain plan check files and records; ensure accuracy of plan check records. Serve as a resource to customers, including directing then!as necessary, to various sources of information including other City departments or outside agencies, notify customers when plans or permits,are ready for pick-up or issuance; and provide status updates as required. Enter, store, and retrieve data; generate and review reports and records of permits and plan check data; and operate a computer,printer and applicable software to produce and update a variety of forms, letters, and other materials. Verify proof of ownership and deeds. Verify current contractor's license and worker's compensation information. Respond to and resolve customer requests, complaints and inquiries. Update contractor's license and worker',s compensation insurance records. Maintain records of all deposits and process refund requests when time has expired. { i I Maintain department web pages with current information. Provide monthly and annual permit activity 'information to city, county, state and federal offices. Coordinate final inspection clearances from all departments; clear utilities to various utility companies. { Review applications for Certificate of Occupancy, coordinate inspection, issue Certificate of Occupancy upon successful final inspection. a Assist Building Official with Caltrans reporting on-District 8 Caltrans projects. Conducts minor plan review on over the counter permits; i.e., patio covers, walls, mechanical, plumbing and electrical permits. Review and issue oversize load permits; maintain insurance certificates. Maintain the files of the Housing Department. Administer the policies and functions of the Housing Department including but not limited to applicant application submittal and process, property acquisition,rehabilitation coordination, subordination agreements and payoffs demands. Assists in compiling annual budget request information. Check reports, records and other data for accuracy, completeness, and compliance with established procedures and standards. Relieve the department head or supervisor of routine duties related to personnel, budget, purchasing, etc., as assigned. Compose letters and reports on routine matters, as assigned. j Prepare and coordinate bid specifications, coordinate advertising, advise contractors of bidding procedures, distribute addendums and process invoices for public works projects. May make appointments and arrange travel, conferences and meetings; sort and post all incoming and outgoing mail. Provide and maintain updated applications, detailed specifications, handouts and drawings. Maintain supplies including office and shipping. Minimum Qualifications: i i i Experience: Five years of experience as a Building/Safety/Public Works Technician. License or Certificate Possession of, or ability to obtain, an appropriate, valid driver's license. Possession of CALBO Permit Technician Credentials or ICC certification as a Permit Technician. Ability to obtain ICC Plans Examiner Certification. i I I CITY OF GRAND TERRACE JOB DESCRIPTION I Title: Building/Safety Technician I �II Date: June 2009 Job Summary Under the supervision of the Director of Building and Safety/Public Works/Housing Department. Provides a variety of administrative support for this department. I Typical Duties i Types, formats and transcribes a variety of documents including correspondence, staff reports, monthly and annual building activity reports, specifications for housing rehabilitation projects and contract and bid documents for Building/Safety/Public Works. 1 I Operates standard office equipment including a computer, copier and print machine. Receives and routes incoming calls and answers routine inquiries. Receives, sorts and distributes incoming and outgoing correspondence; monitors office supply levels and places orders for Building/Safety/Public Works Department. Processes billings for Building and Safety and Public Works contracts. Processes Building, Safety and Public Works permits, schedules inspections, prepares required monthly and annual building activity reports for federal, state and county offices, keeps detailed log of all permit activity, processes conditions of approval and legal descriptions. Performs related duties as assigned. f i Essential Qualifications Ability to type 55 words per minute with a good command of proper Business English, good vocabulary and grammar usage; knowledge of standard office practices, procedures and equipment; ability to maintain a complex record and filing system. Computer experience is essential including knowledge of a variety of programs such as WordPerfect 6.1, TRW Property Data or a similar program. Ability to accurately interpret Assessor's parcel map. Ability to follow oral and written instructions. i i CITY OF GRAND TERRACE Position Description-Building/Safety Technician Page Two Ability to communicate effectively and establish cooperative working relationships with employees and a variety of persons contacted in the course of performing assigned duties; to represent the City in an official capacity. Any combination of education, training and experience that provides the required knowledges, skills and abilities. An example of this would be completion of high school and previous clerical experience involving public contact, preferably in a Public Works or Building and Safety Department. 7 i CITY OF GRAND TERRACE JOB DESCRIPTION Title: Maintenance Crew Leader Date: June, 2009 Job Summary Under the direction of the Assistant City Manager,is a working Maintenance Crew Leader; directs and participates in the inspection, maintenance and repair of City streets, flood control,channels, facilities,grounds,and equipment;assists the Assistant City Manager in the monitoring of contracts for City services. Typical Duties Assists in monitoring the performance of contracts for City services such as construction, weed abatement, buildings, grounds, and street maintenance. Assigns and directs the work of a crew in routine building and grounds maintenance,weed control, patching road,clearing brush,removing trash,minor construction activities,repair and installation of signs,clearing and repairing flood control channels and maintenance of the City Parks and;Parkways. Does routine welding, electrical and plumbing work. Responds to and takes action to resolve citizen complaints. Instructs crew members in proper and safe work techniques; trains and evaluates crew members. Supervises the work release program. Arranges for the purchase/rental of equipment, parts and.supplies as needed. Maintains work records and assists in the preparation of specifications for bid requests; performs other data collection and reporting as required. Occasionally operates heavy equipment such as a front loader,backhoe and bobcat;provides routine maintenance. I i CITY OF GRAND TERRACE Position Agreement -- Maintenance Crew Leader Page Two Performs related duties as assigned. Essential Qualifications Knowledge'of building,"grounds and street maintenance practices,supplies,equipment,and related safety procedures; possession of basic mechanical, electrical and,masonry skills. Ability to organize,direct,and prioritize the work of others,and to train and evaluate crew members. Ability to communicate effectively and establish cooperative working relationships with contractors, residents, business people, and others contacted in the course of performing assigned duties. Ability to perform heavy labor. Ability to maintain accurate and orderly records. Must have a California Driver's License and the ability to safely operate light-duty trucks with standard transmission,hand tools,and motorized equipment,and to perform routine maintenance on tools and equipment. This position requires punctual and regular attendance. Ability to perform heavy manual labor; to be able to lift over 50 pounds. Heavy physical exertion is required, frequently under adverse weather conditions with occasional exposure to fumes and other hazardous or disagreeable conditions. Any combination of education,training and experience that provides the required knowledges,skills, and abilities. An example of this would 'be previous experience in buildings and grounds maintenance in a setting requiring responsiveness to the public and direction of the work of others. 9 i Senior Center Coordinator Job Description July 2009 Part Time— 19hrs/wk No Fringe Benefits Under the authority of the Community Services Director, the Senior Center Coordinator will work as a subordinate to the Senior Center Manager and assist in the planning, directing, and coordinating of the activities of the Senior Center. This position will implements policies and establish procedures related to the senior center, develop and administer the department budget, establish and maintain and be a liaison to the public and perform such other duties as may be assigned. Duties may include, but are not limited to, the following: Receive applications from outside groups and coordinate the use of the facility according to the Rules and Regulations policy as well as enforce the rules according to the policies set forth by the Board of Directors and the City of Grand Terrace. Prepares and administers the budget for the Senior Center with the Senior Center Manager. Assist in and the administration of, and the expansion of contracts (bus trips, senior; activities, walking groups, yoga, pilates, etc.) for department services, act as a liaison to contract service representatives and ensure services are provided in accordance with contract provisions. Coordinate the Community Garden,plan and initiate new events at the Susan Petta1Park, act as a liaison between Seniors and the Corporation of Better Housing's on-site manager. The City of Grand Terrace requires a pre-employment physical and background check as well as a valid California Driver's License. i ' 1( RESOLUTION NO. 2009- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, RESCINDING RESOLUTION 2007-21 AND ADJUSTING THE SALARY RANGES FOR THE EMPLOYEES OF THE CITY OF GRAND TERRACE WHEREAS, the City Council of the City of Grand Terrace has determined the need to adjust the salary ranges for the positions contained in this resolution; NOW THEREFORE, the City Council of the City of Grand Terrace DOES HEREBY 1 RESOLVE, DETERMINE, AND ORDER THE FOLLOWING: U SECTION 1. Rescission -That Resolution No. 2007-21 is hereby rescinded in its entirety. SECTION 2. Classifications/Salary Ranges-That the following job classifications and salary ranges are hereby established for employees of the City of Grand Terrace, and said salary ranges shall be effective July 1, 2009 SALARY RANGE TITLE Minimum Maximum Assistant City Manager $ 7,875.18 $ 11,250.25 Finance Director $ 7,291.66 $ 10,416.66 Community Development Director $ 7,291.66 $ 10,416.66 Director of Building/Safety and Public Works $ 7,291.66 $ 10,416.66 City Clerk $ 5,125.87 $ 7,322.66 Assistant to the City Manager $ 4,199.10 $ 6,158.64 Sr. Planner $ 5,157.00 $ 6,900.00 Associate Planner $ 3,909.20 $ 5,446.80 Executive Assistant $ 3,54682 $ 4,729.10 Assistant Planner $ 3,322.81 $ 4,430.42 Sr. Building/Safety Inspector $ 3,322.81 $ 4,430.42 Sr. Code Compliance Officer $ 3,818.81 $ 5,091.75 Code Compliance Officer $ 3,18482 $ 4,246.41 11 i I Resolution No. 2009- Page 2 SALARY RANGE TITLE Minimum j Maximum Deputy City Clerk $ 3,149.31 $ 4,393.00 Management Information Systems Specialist $ 3,195.68 $ 4,260.91 Sr.Account Technician $ 3,298.69 $ 4,398.21 Finance Assistant $ 2,917.80 $ 3,890.40 Management Analyst $ 3,683.00 $ 4,843.25 Building/Safety Inspector $ .2,855.22 $ 3,806.96 Planning Technician $ 2,824.40 $ 3,765.86 Secretary $ 2,638.58 $ 3,51810 i Maintenance Crew Leader $ 4,054.65 $ 5,392.68 Building/Safety Technician -II $ 4,005.76 $ 5,091.75 Building/Safety/Public Works Technician 1 $ 2,861.25 $ 3,815.0( Account Clerk $ 2,513.02 $ 3,350.70 Account Technician $ 2,756.18 $ 3,674.91 1 Maintenance Worker 1 $ 2,458.00 $ 3,034.00 Maintenance Worker 2 $ 2,661.00 $ 3,303.38 Maintenance Worker 3 $ 2,985.00 $ 3,686.00 Clerk typist $ 1,629.32 $ 2,167.07 Senior Center Coordinator $15.00/hr $19.95/hr Crossing Guard $8.39/hr $11.16/hr Parks& Fields Assistant $8 39/hr $11.16/hr i i 1� ADOPTED THIS 23rd day of June 2009 ATTEST: City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace and of the City Council thereof. and of the City Council thereof. Resolution 2009- Page 3 I, BRENDA MESA, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 23rd day of June 2009, by the following vote: AYES: NOES: ABSENT, ABSTAIN: City Clerk Approved as to form: City Attorney 13 C1T1' ROND TER Community Services Department Staff Report MEETING DATE: June,23 2009 CRA ITEM ( ) COUNCIL ITEM (X) SUBJECT: COUNCIL TO APPROVE 2009 WATER SHARE PURCHASE FOR 4 LOCATIONS WITHIN THE CITY. (X) FUNDING REQUIRED BACKGROUND CITY OF GRAND TERRACE 2009 WATER SHARES ANALYSIS Various locations owned by the City of Grand Terrace such as:easements,parks,municipal facilities, parkways,etc.require a certain number of water shares from Riverside Highland Water Company(RHWC). The water usage at each location determines the number of water shares.the property owner must acquire. When assessing water usage at each facility,we find that certain locations can be reduce water utility bills by simply increasing the number of water shares owned at that location.A reduction in cost savings can occur from owning too many water shares,due to the charge imposed for owning said share.Conversely, owning too few shares can result in a higher usage rate.The objective would be to find equilibrium in the cost/savings conflict which brings us to the final conclusion that certain locations would benefit from the purchase of water shares. Staff has reviewed the data,provided by RHWC,regarding water consumption and the utility bills for each of the locations. After review and discussion of the analysis(see table"A"),the initial purchase of four water shares can cut water cost in the future.The initial investment will result in a projected savings of$879.98 to the City over the next two years. Funding Staff has,determined that the purchase of 4 water shares,at$300 per share,will result in the savings of $879.98 over a two year period and is expected to continue into the future. Proposed funding would come from un-designated un-reserve General Fund Balance. The City will be increasing its capital by four water shares along with the savings'in the utility usage. RECOMMENDATION: Staff is looking to City Council to approve$1200 for'four water shares from the un-designated un-reserved General Fund Balance. Below is the list of locations: Barton& LaCrosse—Freeway off ramp(1) Park/Merle Ct.—California Aqueduct pipeline easement(1) 1/2 Robin Way—TJ Austin Park(1) Corner Canal&Terrace PI(1) COUNCIL AGENDA ITEM NO.` -7 1 --¢ Ta61e"A" Analys,s of vdater snares iL8 4F of shares suggested a of Two year cost ACCCIjntF' N-Umtoer Location currently ay.:ned TJ+a year cast shares to Purchase after Purchase Cost Savings Percentage Recommendation C157 -01 Barton&LaCrosse 3 53 875.62 1 53.679.44 $196.13 5.06y: Purchase ^' 18 $23 801 14 4 $22 35O,07 51451.07 6.10�: Do not Purchase C24CS-01 Pico Park R C2740-01 Park/Merle Ct. 6 54.392A8 i $4158.52 S233.96 5.33¢ Purchase "� C3AA7-Q1 .4;2 Rabin Way 4 S5.330.45 1 55 155.53 $224.92 4.18% Purchase !.1 S4 755.11 $224.92 4.52y: Purchase C3273-01 Corner canal&Terrace PI. 4 54,980.03 1 C1612-01 Park,,DeBerry 12 $13,071.92 2 $12,699 76 $372.15 2.85# Do not Purchase C1512.01 ParklDeBerr, 16 $12,414,80 2 $12,196.31 $218.49 1.76ti`_ Da not Purchase C 15al-01 212237 Barton Rd B 54,651.54 i 54 643.1E $8.36 0.18% Do not Purchase C1576 01 -2045 -12 Barton Rd. 3 52,133.07 1 52,098.92 $3415 1.60 Do not Purchase ,. 54 408.06 �� 1 -� �, - Do not Purchase 0235_0_ 22793-95 Barton ad. 10 54,39_.94 1 Tate+ S4 579 092.99 1-5 $76 1A4.9O $2 948.09 3.73:: To.ai for recorimended purchases 17 $13 62B 58 4 $17,745 60 $379.92 4.72 cast Per Share 5300.00 4 Shares needed S 2DD.0O o Shares needed rf 4 are mo.*d $0.00 STAFF REPORT GRAND TERR C ACTING CITY MANAGERS'S OFFICE CRA ITEM Q COUNCIL ITEM (X) MEETING DATE: June 23, 2009 SUBJECT: Property Lease Agreement American Promotional Events, Inc. Dba Freedom Fireworks/Red Devil Fireworks/TNT Fireworks FUNDING REQUIRED (X) NO FUNDING REQUIRED BACKGROUND: At the April 14th Council Meeting , it was requested by Council Member Stanckiewitz to have staff meet with representatives of the Grand Terrace Community Soccer League and the Grand Terrace Little League to discuss the City's lighting and field use fee structure., The Council discussion included tabling the lease agreement with TNT Fireworks until the April 28th Council Meeting. The motion was made by Mayor Pro Tern Lee Ann Garcia and seconded by Council Member Jim Miller. The motion passed 5-0. The Acting City Manager met with the presidents of both the Grand Terrace Community Soccer League and the Grand Terrace Little League on April 20th in City Hall. It was understood that both leagues agreed to have the July 4th 2009 Fireworks Sale on Barton Road as their last fireworks fundraising event in return for the City eliminating the $5 per child field use fee and providing a lighting credit (an average of their last three year's usage). Revenue to the City: 2008 Lighting Fees for Soccer = $1700 2008 Lighting Fees for Little League = $1300 2008 Field Use Fees for Soccer = $3210 2008 Field Use Fees for Little League = $1270 Total fees paid to the City in 2008 = $7,480 Most Recent Update: It was brought to Staffs attention June 2, 2009 that both presidents of the leagues reported back that their Boards have rejected the City's,offer to not sell fireworks after July 5, 2009 in return for field use and lighting use fee reductions. COUNCIL AGENDA ITEM NO. -7 1 The leagues still want to proceed with the sale of fireworks starting June 28, 2009 to July 4, 2009 on the City owned property as outlined in the attached property lease agreement. j RECOMMENDATION Staff is recommending a compromise. -Allow the GTLL to sell fireworks this year on the City owned property. -Execute the attached lease for the 2009 Fireworks season -Give both the GTLL and GTCSC a deadline of October 1, 2009 to provide the City in writing their position on selling fireworks for 2010 and beyond in lieu of the City eliminating field use fees and lighting fees (average of the past three years) -Schedule an agenda item at the October 13, 2009 Council to discuss the banning of fireworks in the City of Grand Terrace i Accompanying, please find a Property Lease Agreement by and between the Community Redevelopment Agency of the City of Grand Terrace and American Promotional Events, Inc. dba Freedom Fireworks/Red Devil Fireworks/TNT Fireworks to lease property located at 22293 Barton Road, Grand Terrace, California, for the purpose of conducting the sale of"Safe and Sane" fireworks from June 28, 2009 to July 4, 2009. The actual sale of fireworks will be conducted by the Grand Terrace Little League and Grand Terrace Soccer Associations as a fund raiser. As in the past, rental for the site is $1.00. Also, please find a copy of the draft permit and Certificate of - Insurance. Approve the attached Property Lease Agreement with American Promotional Events, Inc., dba Freedom Fireworks/Red Devil Fireworks/TNT Fireworks. FISCAL IMPACT: $7,480 in potential fees for FY 2009-10 i I i I I I I I 2 PROPERTY LEASE AGREEMENT This Property Lease Agreement ("Lease") is entered into by and between COMMUNITY REDEVELOPMENT AGENCY OF GRAND TERRACE ("Lessor") and AMERICAN PROMOTIONAL EVENTS, INC., a California Corporation, d.b.a. Freedom Fireworks/Red Devil- Fireworks/TNT Fireworks ("Lessee"), on the terms and conditions below. Lessor represents and warrants that, it has the authority to lease that certain real property located.at 22293 BARTON ("The Premises") in the city of GRAND TERRACE, California. Lessor hereby leases to Lessee and Lessee leases from Lessor the Premises. Lessor grants Lessee and a nonprofit organization designated by Lessee the exclusive right to occupy the Premises for the sole purpose of conducting the sale of "Safe and Sane" fireworks from June 28, 2009 to July 4, 2009'. Lessee agrees to remove the temporary fireworks sales booth on or before July 8, 2009, leaving the Premises clean and free of debris. Lessee agrees to maintain and provide Public Liability and Property Damage Insurance in the amount of TEN MILLION DOLLARS ($10,000,000.00 combined single limits, pertaining to and protecting against liability arising from the activities conducted at the Premises by Lessee and the nonprofit organization. Lessor, and any other parties designated by the Lessor, will be named as an additional insured on said policy and a certificate of insurance will be provided Lessor prior to the occupancy of the Premises. Lessee shall indemnify, hold harmless and defend. Lessor from and against any foss, claims or costs arising from the use of the Premises by Lessee and the nonprofit organization. This Lease is subject to cancellation in the event of either sale of, or construction on, the property that would prohibit the use of the site. This Lease is also subject to cancellation if, for any reason, the Lessee is unable to secure a group to operate on the premises, or the nonprofit organization cannot acquire and maintain all city, county, and state licenses and/or permits necessary to operate a legal fireworks sale on the Premises in compliance with 3 i applicable law. In the event of cancellation, Lessee shall give Lessor i ritten notice of the cancellation no later than June 15, 2009. Lessor shall refund the rent paid within ten (10) days of such notice. I Lessee agrees to observe all of the obligations hereunder and Lessor agrees Lessee. shall have quiet possession and enjoyment of the Premises , during the term of this Lease. This Lease contains the entire agreement between the parties. Any amendment or modification hereto shall be effective only if in writing and signed by both parties. Rental consideration for this Lease shall be a total of ONE DOLLAR ($1.00). . I i COMMUNITY REDEVELOPMENT AGENCY OF GRAND TERRACE l By: Date: AMERICAN PROMOTIONAL EVENTS, INC. 1 1 By: Date: Rick Poo,A LOC#XXX0691 TO WHOM IT MAY CONCERN: Permission is hereby granted to CCRA-0i) i'URAc¢ L,A lr g ,� ��e and AMERICAN PROMOTIONAL EVENTS, INC., d.b.a., TNT FIREWORKS, for the exclusive right to use the property located at 22293 BARTON ROAD in the City of GRAND TERRACE for their 2009 Fireworks stand. It is understood that this sale will be conducted in accordance with all City, County and State regulations, and the property left clean and free of debris. Community Redevelopment Agency of Grand Terrace By. Date: #XXX0691 5 7 CERTIFICATE OF INSURANCE ISSUE DATE A CORD„ 03/06/2009 PRODUCER This certificate is issued as a matter of information only and confers no rights MCGRIFF,SEIBELS&WILLIAMS,INC. upon the Certificate Holder. This Certificate does not amend,extend or alter the P.O.Box 10265 coverage afforded by the policies below. Birmingham,AL 35202 800-476-2211 COMPANIES AFFORDING COVERAGE i ComApany Columbia Casualty Company INSURED Company Colony National Insurance Co. American Promotional Events,Inc. B dba TNT Fireworks 555 North Gilbert Avenue Company Fullerton,CA 92833 C Company D Company This is to certify that the policies of Insurance described herein have been issued to the Insured named herein for the policy period indicated. Notwithstanding any requirement,term or condition of contract or other document with respect to which this certificate may be issued or may pertain,the insurance afforded by the policies described herein is subject to all the terms,conditions and exclusions of such policies. Limits shown may have been reduced by paid claims. CO TYPE OF INSURANCE POUCY NUMBER EFFECTIVE LIMITS OF LIABIUTY, LT EXPIRATION A GENERAL LIABILITY PCL0223304725 11/01/2008 EACH OCCURRENCE ® mmenael General Llab l $ 1.100.000 Co Ky 11/01/2009 FIRE DAMAGE $ 00000 ❑Claims Made ®Oaurrence ❑ MEDICAL EXPENSE EXCLUDED Owners'end Contractors'Protection �$ ®$5,000 Deductible Per Occ PERS.AND ADVERTISING INJURY $ 1.000,000 ❑ GENERAL AGGREGATE $ 2,000,000 General Aggregate Umit applies per. PRODUCTS AND COMP.OPER.AG—G. $ 2,000,000 ❑Polley ❑Project MLocation AUTOMOBILE UABIUTY COMBINED SINGLE LIMIT $ ❑Any Automobile - -- ❑All Owned Automobile BODILY IN r $ ❑scheduled Automobiles BQDILY INJURY Per accident s ❑Hired Automobiles PROPERTY DAMAGE Per accident $ ❑Non-owned Automobiles COMPREHENSIVE ❑ COLLISION WORKERS'COMPENSATION WC Statutory LimK Other AND EMPLOYERS'LIABIUTY EL EACH ACCIDENT $ IS EASE Each employee) $ EL DISEASE(Policy Limit $ B EXCESS LIABIUTY AR44602750 11/01/2008 EACH OCCURRENCE $ 5,000,000 ®occurrence ❑CletmsMade 11/01/2009 AGGREGATE $ 5,000,000 RetentioruDeductible 10.000 $ $ s $ $ 22393 BARTON GRAND TERRACE,CA(LOC#XXX0691) The Certificate Holder is named as Additional Insured with respect to General Liability as required by written contract subject to policy terms,conditions,and exclusions. I i CERTIFICATE HOLDER SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF.THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER,ITS AGENTS OR REPRESENTATIVES. COMMUNITY REDEVELOPMENT AGENCY OF GRAND TERRACE Authorized Representative ICITY OF GRAND TERRACE _ 22293 BARTON GRAND TERRACE, CA 92313 F C�T'Y RAND TER C Community Services Department. Staff Report MEETING DATE: 'June 23;2009 CRA ITEM ( ) COUNCIL ITEM (X) SUBJECT: COUNCIL TO REVIEW PARKING PERMIT OPTIONS ON DE BERRY ST. (X) FUNDING REQUIRED BACKGROUND CITY OF GRAND TERRACE "NO OVERNIGHT PARKING" REPORT The "No Over Night Parking" issue was brought to the City Council's attention at the. February 10, 2009 City Council meeting by resident Harry A. McDermott, of 22452 De Berry Street. A ballot was mailed to the residents affected by the"No Over Night Parking". A tally of the ballots resulted in 7 votes in support of proceeding with the "Issue Parking Permits" L process and 2 votes for"Maintain the parking situation". Staff has contacted and reviewed other cities' "No Overnight Parking" programs. The results'vary from annual permit costs ranging between $25 to $100 per permit per year. "No Overnight Parking"is enforced by-local law enforcement agencies. FUNDING: Program costs would be funded by the revenue collected through annual permit parking fees. Sheriff Department costs would not be funded through this program, but included in routine traffic patrol as contracted by the City. Staff has been working to reduce the cost of the implementation of this program for the residents. By keeping the existing signs but adding a smaller second sign noting"Except Vehicles with City Permits" saves $750 in sign and post costs. Traffic engineer costs have been waived. COUNCIL AGENDA ITEM,NO. 7/3 1 i I RECOMMENDATION: Staff is recommending the implementation of a Parking Permit program for resident's located at 22380, 22388, 22396, 22404, 22412, 22420, 22428, 22436,22444, 22452, 22460, 22468, 22476 De Berry Street, and 12294 Mirado Avenue. j Staff also recommends the following program regulations: • Maximum 2 permits per household (the permits can be used for any car and are not vehicle specific) j • Permits are valid for use within 100 ft. of the permit residence. I • Permit fee of$25 per year per vehicle plus the cost of the placard($7.50) • Permits will be valid for two years, proration's apply • Permit placard replacement fee is $15' ! I Initial permits will be issued with an expiration date of 12/31/11. Fee justification includes: • Application and permit processing by the Department Secretary— '/z hr. per permit • Payment,process by the Finance Dept. — '/2 hr. per permit • Administration review costs If approved, staff will add the following sign to the"No Overnight Parking" sign: • "Except Vehicles with City Permits" Residents would be required to submit proof of residency. Accepted documents as proof of residence are: • Picture ID with address matching permit address • Vehicle registration with matching permit address • Utility bill (dated 30 days or less) listing tenant at the permit address (cable�ibill not accepted) • Homeowner, a Tax Assessor's notice or Deed of Trust I i I a t i4 asiti::s'a t A003s"),� C 1 T .- STAFF REPORT BRAND TERM CITY ATTORNEY'S OFFICE CRA ITEM () COUNCIL ITEM (X) PUBLIC FINANCING AUTHORITY ITEM (X) F MEETING DATE: June 23, 2009 SUBJECT: Refunding of Existing City of Grand Terrace 1997 Certificates of Participation FUNDING REQUIRED O NO FUNDING REQUIRED (X) Members'of the City.Council and Board of Directors: As we discussed at a prior City Council meeting, the City Council approved proceeding with the refunding of the City's 1997 Certificates of Participation through a private bank placement. Based upon the proposed interest rate and savings resulting in part from not requiring a reserve 'fund, this refunding will save the City approximately $22,000 annually for the remaining term of the Certificates. The repayment term for the private bank placement will be the same term as the 1997 Certificates as if there were no refunding. In other words, this is not stretching out.the repayment term in order to reduce the annual debt service. Accompanying the staff report, please find two resolutions to be adopted approving the draft documents, one by the City Council and second by the Public Financing Authority, as well as the draft documents, the Termination Agreement, the Lease Agreement and the Irrevocable Refunding Instructions. STAFF RECOMMENDATION: Adopt the,attached resolutions approving the draft financing documents. FISCAL IMPACT: Annual savings of approximately $22,000. COUNCIL AGENDA ITEM NO. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 1 GRAND TERRACE AUTHORIZING PROCEEDINGS TO REFUND OUTSTANDING 1997 CERTIFICATES OF PARTICIPATION AND APPROVING RELATED DOCUMENTS AND ACTIONS WHEREAS, in order to refinance obligations issued by the City of Grand Terrace (the "City") and the City of Grand Terrace Public Financing Authority (the "Authority") 'ram have previously entered into a Lease Agreement dated as of August 1, 1997 (the "1997 Lease"); and 1 WHEREAS, the City's lease payments under the 1997 Lease (the "1997�Lease Payments") are evidenced by City of Grand Terrace Refunding Certificates of Participation, Issue of 1997 which have been executed and delivered in the aggregate principal amount of$3,730,000 (the "1991 Certificates"); and - WHEREAS, the City Council wishes at this time to approve proceedings to refinance the 1997 Certificates and thereby realize interest rate savings as well as the reduction or elimination of certain other costs, and to approve related documents and actions; i NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Grand Terrace as follows: Section 1. Approval of Refinancing Proceedings. The City Council hereby approves the refinancing of the 1997 Certificates and the related 1997 Lease Payments. To that end, the City Council hereby approves each of the following agreements in substantially the respective forms on file with the City Clerk together with any changes therein or additions thereto deemed advisable by the Acting City Manager, and the execution thereof by the Acting City Manager shall be conclusive evidence of such approval: 1 i • Termination Agreement between the City, the Authority and U.S. Bank National Association, as trustee for the 1997 Certificates (the "1997 Trustee"), whereby the City and the Authority agree to terminate the 1997 Lease and the related Assignment Agreement. • Lease Agreement between ' the City and Municipal Finance Corporation (the "Corporation"), whereby the City leases to the Corporation the real property which has been leased under the 1997 Lease in consideration of the agreement by the Corporation to provide sufficient funds to refinance the 1997 Lease and pay related financing costs, and the Corporation leases such real property back to the City in consideration of the payment of semiannual lease payments by the City as rental for such real property. • Irrevocable Refunding Instructions given by the City to the 1997 Trustee, whereby the 1997 Trustee agrees to establish an irrevocable i .00 t-3Tl AUV30A J1314UOO escrow fund to be held and invested for the purpose of paying the principal, interest and prepayment premium represented by the 1997 Certificates, and to prepay the 1997 Certificates in full on the first available prepayment date. The Acting City Manager is authorized and directed for and in the name and on behalf of the City to execute and the City Clerk is hereby authorized and directed to attest the final form of each of the foregoing documents. Section 2. Material Terms of Lease Agreement. The Lease Agreement shall be for a term not in excess of the original term of the 1997 Lease, the aggregate principal amount of the lease payments shall not exceed $2,300,000 and the interest components of the lease payments thereunder shall be computed at an interest rate of 4.70% per annum. Section 3. Official Actions. The Acting City Manager, the Finance Director, the City Clerk and all other officers of the City are each authorized and directed in the name and on behalf of the City to make any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they or any of them might deem necessary or appropriate in order to consummate any of the transactions contemplated by the agreements and documents approved under this Resolution. Whenever-in this resolution any officer of the City is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable. Section 4. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Grand Terrace on the 23`d day of June, 2009, by the following called vote: Mayor of the City of Grand Terrace Attest: City Clerk of the City of Grand Terrace -- 2 3 i _ I I, BRENDA MESA, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No. 2009- was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 23`d day of June, 2008, by the following vote: AYES: NOES: ABSENT: ABSTAIN: 1 Brenda Mesa, City Clerk I Approved as to form: City Attorney 1 I I i I I i i -- 3 1 I TO BE RECORDED AND WHEN RECORDED RETURN "I'O: Harper& Burns LLP John R. Harper 453 South Glassell Street Orange, California 92866 (714) 771-7728 (714) 744-3350 THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11928 OF THE CALIFORNIA REVENUE AND TAXATION CODE. THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE CALIFORNIA GOVERNMENT CODE. TERMINATION AGREEMENT This TERMINATION AGREEMENT (this "Agreement"), dated as of August 10, 2009 is among the CITY OF GRAND TERRACE, a municipal corporation duly organized and existing under the Laws of the State of California (the "City"), the CITY OF GRAND TERRACE PUBLIC FINANCING AUTHORITY, a joint exercise of powers authority duly organized and existing under the laws of the State of California (the "Authority"), and U.S. BANK NATIONAL ASSOCIATION, as trustee for the within-mentioned 1997 Certificates (the "1997 Trustee"). BACKGROUND: 1. The City and Authority have previously entered into a Lease Agreement dated as of August 1, 2009 which is disclosed of record by a Memorandum Agreement dated as of August 1, 2009, between the Authority as lessor and the City, which was recorded on September 18, 1997, as Document Number1997-0342271 in the Office of the Riverside County Recorder, under which the Authority has sub-leased to the City the real property more particularly described in Appendix A (the "Leased Property"). 2. The City's lease payments under the 1997 Lease (the "1997 Lease Payments") are evidenced by the City of Grand Terrace Refunding Certificates of Participation, Issue of 1997 which have been executed and delivered in the aggregate principal amount of S3,730,000 (the "1997 Certificates") under a Trust Agreement dated as of August 1, 1997, among the City, the Authority and First Trust of California, National Association, as predecessor to the 1997 Trustee. 1 5 3. The City has caused to be deposited with the 1997 Trustee, under Irrevocable Refunding Instructions dated as of the date hereof(the "Refunding Instructions"), an amount of funds which sufficient to refund and defease the 1997 Certificates and the 1997 Lease Payments in full without regard to investment earnings thereto. 4. The deposit made with the 1997 Trustee under the Refunding Instruction constitutes a security deposit for the payment of the 1997 Lease Payments in accordance with the provisions of Section 10.3 of the 1997 Lease. 5. As a result of the deposit and investment of funds under the Refunding Instructions, the 1997 Lease has terminated and title to the real property which is subject to the 1997 Lease has vested in the City. 6. The City has requested the Authority to enter into this Agreement for the purpose of terminating the 1997 Lease and the related Assignment Agreement of record. AGREEMENT: In consideration of the foregoing and the material covenants hereinafter contained, the City and the Authority formally covenant, agree and bind themselves as follows: SECTION 1. Termination of 1997 Lease. The Authority and the City hereby terminate the 1997 Lease. From and after the date of recordation of this Agreement, the 1997 Lease shall be of no force and effect. SECTION 2. Termination of 1997 Assignment. The Authority and the Trustee hereby terminate the Assignment Agreement dated as of August 1, 1997, between the Authority -as assignor and the 1997 Trustee. From and after the date of recordation of this Agreement, said Assignment Agreement shall be of no force and effect. SECTION 3. Execution of Counterparts. This Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original and all of which shall together constitute but one and the same instrument. SECTION 4. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to lie executed by their respective officers thereunto duly authorized, all as of the date first above written. CITY OF GRAND TERRACE By: Acting City Manager 2 6 ATTEST: City Clerk CITY OF GRAND TERRACE PUBLIC FACILITIES FINANCING AUTHORITY By: Executive Director ATTEST: Secretary FIRST TRUST OF CALIFORNIA, NATIONAL ASSOCIATION, as 1997 Trustee By: Authorized Officer 3 7 i TO BE RECORDED AND WHEN RECORDED RETURN TO: HARPER & BURNS LLP 453 S. Glassell Street Orange, California i. Attention: John R. Harper, Esq. i i i THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX UNDER SECTION 11922 OF THE CALIFORNIA REVENUE AND TAXATION CODE.; THIS DOCUMENT IS EXEMPT FROM RECORDING FEES UNDER SECTION 27383 OF THE CALIFORNIA GOVERNMENT CODE. LEASE AGREEMENT i This LEASE AGREEMENT (this "Lease"), dated as of August 10, 2009, is between MUNICIPAL FINANCE CORPORATION, a corporation duly organized and existingl under the laws of the State of California (the "Corporation"), as lessee and sublessor, and the ,\ CITY OF GRAND TERRACE, a municipal corporation duly organized and existing under the Laws of the State of California (the "City"), as lessor and sublessee. BACKGROUND : j 1. In order to refinance obligations issued to finance city hall and water system improvements, the City and the City of Grand Terrace Joint Powers Financing Authority (the "Authority") have previously entered into a Lease Agreement dated as of August 1, 1997 (the "1997 Lease"). 2. The City's lease payments under the 1997 Lease (the "1997 ! Lease Payments") are evidenced by City of Grand Terrace Refunding Certificates of Participation, Issue of 1997 which have been executed and delivered in the aggregate principal amount of$3,730,000 (the "1997 Certificates"). 3. The City has determined to refinance the 1997 Certificates and the 1997 Lease Payments and thereby terminate the 1997 Lease, and in order to raise funds for that purpose the City has proposed to lease the property which is leased under the 1997 Lease, as such property is more particularly described in Appendix A attached hereto and by this reference incorporated herein (the "Leased Property"), to the Corporation for an upfront rental payment which is sufficient for that purpose. i I 4. The Corporation has proposed to lease the Leased Property back to the City in consideration of the payment by the City of semiannual lease payments which reflect the interest rate savings which are realized as a result of the refinancing of the 1997 Lease Payments and the 1997 Certificates. -5. The City and the Corporation have agreed to enter into this Lease in the principal amount of $ for the purpose of implementing the financing transactions described above. AGREEMENT: In consideration of the foregoing and the material covenants hereinafter contained, the City and the Corporation formally covenant, agree and bind themselves as follows: ARTICLE I DEFINITIONS; RULES OF INTERPRETATION SECTION 1.1. Definitions. All terms defined in this Section 1.1 have the meanings herein specified for all purposes of this Lease. "Assignee" means (a) initially, City National Bank, as assignee of certain rights of the Corporation hereunder, and (b) any other entity to whom the rights of the Corporation hereunder are assigned. "Assignment of Lease" means the Assignment of Lease Agreement dated as of August 10, 2009, between the Corporation as assignor and the Assignee as assignee, as originally executed or as -thereafter amended under any duly authorized and executed amendments thereto. "Authority" means the City of Grand Terrace Public Financing Authority, a joint powers authority organized and existing under the laws of the State of California. "`Bond Counsel" means (a) Harper & Burns LLP, or (b) any other attorney or firm of attorneys of nationally recognized expertise with respect to legal matters relating to obligations the interest on which is excludable from gross income under Section 103 of the Tax Code. "Business Day" means a day other than a Saturday, Sunday or legal holiday, on which banking institutions are not closed in the State of California. :"Citv" means the City of Grand Terrace, a municipal corporation organized and existing under the Laws of the State of California. "Closing Date" means the date of execution and delivery of this Lease by the parties hereto, being August 10, 2009. ,"Corporation" means Municipal Finance Corporation, a corporation duly organized and existing under the laws of the State of California. -2- 9 1 I I - I Event of Default means any of the events of default as defined in Sectionj8.1. "Federal Securities" means any direct general non-callable obligations of the United States of America (including obligations issued or held in book entry form on the books of the Department of the Treasury of the United States of America), or obligations the timely payment of principal of and interest on which are directly guaranteed by the United States of America. l' 1 "Fiscal Year" means each twelve-month period during the Term of this !Lease commencing on July 1 in any calendar year and ending on June 30 in the next succeeding calendar year, or any other twelve-month period selected by the City, as its fiscal year period. i i "Lease" means this Lease Agreement dated as of August 10, 2009, between the Corporation and the City. ; I "Lease Payment" means all payments required to be paid by the City i under Section 4.5, including any prepayment thereof under Sections 9.2 or 9.3. "Lease 'Payment Date" means September 1 and March 1 in each year, commencing March 1, 2010, and continuing to and including the date on which the Lease'Payments.are paid in full. I "Leased Property" means the real property which is more particularly described in Appendix A. In the event of the release of any property under Section 417, the description of the Leased Property shall be modified to reflect such release. j "Net Proceeds" .means any eminent domain award (including any proceeds of sale to a governmental entity under threat of the exercise of eminent domain powers), paid with respect to the Leased Property, to the extent remaining after payment therefrom of all expenses incurred in the collection thereof. "1997 Certificates" means the City of Grand Terrace Refunding Certificates of Participation, Issue of 1997, executed and delivered in the aggregate principal amount of $3,730,000 under the Trust Agreement dated as of August 1, 1997, among the City, the Authority and the,1997 Trustee. "1997 Lease" means the Amended and Restated Lease Agreement dated as of August 1, 1997, between the Authority as lessor and the City as lessee of the Leased Property. "1997 Lease Payments" means the lease payments which are payable by the City under Section 4.4(a) of the 1997 Lease, including prepayments thereof under Section 9.2 of the 1997 Lease. "1997 Trustee" means U.S. Bank National Association, as trustee for the 1997 Certificates. "Permitted Encumbrances" means, as of any time: (a) liens for general ad valorem taxes and assessments, if any, not then delinquent, or which the City may permit to remain unpaid under Article VI of this Lease; (b) this Lease and the Assignment of Lease; (c) any right or claim of any mechanic, laborer, materiialman, -3- 1 1C supplier or vendor not filed or perfected in the manner prescribed by law; (d) the exceptions disclosed in the title insurance policy issued with respect to the Leased Property issued as of the Closing Date; and (e) any easements, rights of way, mineral rights, drilling rights and other rights, reservations, covenants, conditions or restrictions which exist of record and which the City certifies in writing will not materially impair the use of the Leased Property for its intended purposes. ,"Prepayment Date" means September 1, 2009. "Refunding Instructions" means the Irrevocable Refunding Instructions dated as of the Closing Date, given by the District to the 1997 Trustee, relating to the payment (� and prepayment of the 1997 Certificates and 1997 Lease Payments. 'Rental Period" means each period during the Term of the Lease commencing on and including January 2 in each year and extending to and including the next succeeding January 1. The first Rental Period begins on the Closing Date and ends on March 1, 2010. "Tax Code" means the Internal Revenue Code of 1986 as in effect on the Closing Date or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the Closing Date, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, under the Tax Code. "Term of this Lease" or "Term" means the time during which this Lease is in effect, as provided in Section 4.3. SECTION 1.2. Interpretation. (a) Unless the context otherwise indicates, words expressed in the singular include the plural and vice versa and the use of the neuter, masculine, or feminine gender is for convenience only and include the neuter, masculine or feminine gender, as appropriate. (b) Headings of articles and sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and do not affect the meaning, construction or effect hereof. (c) All references herein to "Articles," "Sections" and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Lease; the words "herein," "hereof," "hereby," "hereunder' and other words of similar import refer to this Lease as a whole and not to any particular Article, Section or subdivision hereof. -4- 11 I i I ARTICLE II COVENANTS, REPRESENTATIONS AND WARRANTIES SECTION 2.1. Covenants, Representations and Warranties of the City. The City makes the following covenants, representations and warranties to the Corporation as of the date of the execution and delivery of this Lease: 1 (a) Due Organization and Existence. The City is a municipal corporation duly organized and validly existing under the Laws of the State of California, has full legal right, power and authority under the laws of the State of California to enter into this Lease and to carry out and consummate all transactions contemplated hereby 11 and thereby, and by proper action the City has duly authorized the execution and delivery of this Lease. i (b) Due Execution. The representatives of the City executing this 1 Lease have been fully authorized to execute the same under a resolution duly adopted by the City Council of the City. (c) Valid, Binding and Enforceable Obligations. This Lease has been duly authorized, executed and delivered by the City and constitutes the legal, valid and binding agreements of the City enforceable against the City in accordance with their respective terms. J (d) No Conflicts. The execution and delivery of this Lease, the ' consummation of the transactions herein contemplated and the fulfillment of or compliance with the terms and conditions hereof, do i not and will not conflict with or constitute a violation or breach of or default (with due notice or the passage of time or both) under any applicable law or administrative rule or regulation, or any applicable court or administrative decree or order, or any indenture, mortgage, deed of trust, lease, contract or other agreement or instrument to which the City is a party or by which it or its properties are 1 otherwise subject or bound, or result in the creation or imposition of j any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the City, which conflict, violation, breach, default, lien, charge or encumbrance would have consequences that would materially and adversely affect the consummation of the transactions contemplated by this' Lease or the financial condition, assets, properties or operations of the City. (e) Consents and Approvals. No consent or approval of any trustee or holder of any indebtedness of the City or of the voters of the City, and no consent, permission, authorization, order or license of, or filing or registration with, any governmental authority is necessary in connection with the execution and delivery of this Lease, or the consummation of any transaction herein contemplated, except as have been obtained or made and as are in full force and effect. -5- 12 (f) No Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court or federal, state, municipal or, other governmental authority pending or, to the knowledge of the City after reasonable investigation, threatened against or affecting the City or the assets, properties or operations of the City which, if determined adversely to the City or its interests, would have a material and adverse effect upon the consummation of the transactions contemplated by or the validity of this Lease or upon the financial condition, assets, properties or operations of the City, - and the City is not in default with respect to any order or decree of any court or any order, regulation or demand of any federal, state, municipal or other governmental authority, which default might have consequences that would materially and adversely affect the consummation of the.transactions contemplated by this Lease, or the financial condition, assets, properties or operations of the City. SECTION 2.2. Covenants, Representations and Warranties of the Corporation. The Corporation makes the following covenants, representations and warranties 10 the City as of the date of the execution and delivery of this Lease: (a) Due Organization and Existence. The Corporation is a corporation duly organized and existing under the laws of the State of California, has full legal right, power and authority to enter into this Lease' and the Assignment of Lease and to carry out and consummate all 'transactions contemplated hereby and thereby, and by proper action the Corporation has duly authorized the J execution and delivery of this Lease and the Assignment of Lease. (b) Due Execution. The representatives of the Corporation executing this Lease and the Assignment of Lease are fully authorized to execute the same under official action taken by the Board of Directors of the Corporation. (c) Valid, Binding and Enforceable Obligations. This Lease and the Assignment of Lease have been duly authorized, executed and delivered by the Corporation and constitute the legal, valid and binding agreements of the Corporation, enforceable against the Corporation in accordance with their respective terms. (d) No Conflicts. The execution and delivery of this Lease and the Assignment of Lease, the consummation of the transactions herein contemplated and the fulfillment of or compliance with the terms and conditions hereof, do not and will not conflict with or constitute a violation or breach of or default (with due notice or the passage of time or both) under any applicable law or administrative rule or regulation, or any applicable court or administrative decree or order, or any indenture, mortgage, deed of trust, lease, contract or other agreement or instrument to which the Corporation is a party or by which it or its properties are otherwise subject or bound, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the property or -6- 13 1 I i I . 1 assets of the Corporation, which conflict, violation, breach, default, lien, charge or encumbrance would have consequences that would materially and adversely affect the consummation of the transactions contemplated by this Lease and the Assignment of Lease or the financial condition, assets, properties or operations of the Corporation. I (e) Consents and Approvals. No consent or approval of any trustee or holder of any indebtedness of the Corporation, and no. consent, permission, authorization, order or license of, or filing or registration with, any governmental authority is necessary in connection with j the execution and delivery of this Lease or the Assignment of Lease, or the consummation of any transaction herein or therein contemplated, except as have been obtained or made and as are in full force and effect. I - 1 (f) No Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court or federal, state., municipal or other governmental authority pending or, to the knowledge of the Corporation after reasonable investigation, threatened against or affecting the Corporation or the assets, properties or operations of the Corporation which, if determined adversely to the Corporation or its interests, would have a material and adverse effect upon the +, consummation of the transactions contemplated by or the validity of this Lease or,the Assignment of Lease, or upon the financial { condition, assets, properties or operations of the Corporation, and the Corporation is not in default with respect to any order or decree of any court or any order, regulation or demand of any federal, state, municipal or other governmental authority, which default might have consequences that would materially and adversely affect the consummation of the transactions contemplated by this Lease or the Assignment of Lease or the financial condition, assets, properties or operations of the Corporation. ARTICLE III DEPOSIT AND APPLICATION OF FUNDS SECTION 3.1.. Deposit of and Application of Funds.. On the Closing Date, the Corporation shall cause the amount of $ to be deposited with the 1997 Trustee to be held and administered under the Refunding Instructions in the amount of $ for such purpose) for the purpose of paying and prepaying the 1997 Certificates and the 1997 Lease Payments on the Prepayment Date.1 Such amount shall be derived from amounts paid by the Assignee under the Assignment of Lease. In addition, a portion of the amounts paid by the Assignee under the Assignment of Lease shall be applied by the Corporation to pay financing costs of the transaction in the amount of $ SECTION 3.2. Refunding of 1997 Certificates. The City shall cause the amount deposited with the 1997 Trustee under Section 3.1, together with other amounts held by I I i i -7- I 1� the 1997 Trustee with respect-to the 1997 Certificates, to be applied to pay and prepay the 1997 Lease Payments on the Prepayment Date, and thereby pay and prepay the related lease payment obligations of the City under the 1997 Lease, in accordance with the Refunding Instructions. As a result of such payment and prepayment of the 1997 Certificates and the 1997 Lease Payments, the City covenants that the 1997 Certificates have been discharged. SECTION 3.3. Termination of 1997 Lease. As a result of the payment and prepayment of the 1997 Certificates and the 1997 Lease Payments, the 1997 Lease has been discharged and terminated in accordance with its terms. On the Closing Date, the City shall enter into an agreement with the Authority which terminates the 1997 Lease, and shall cause an executed copy of said agreement to be recorded in the office of the Riverside County Recorder. ARTICLE IV LEASE OF LEASED PROPERTY; LEASE PAYMENTS SECTION 4.1. Lease of Leased Property by City to Corporation. The City hereby covenants that it has fee simple merchantable title to the Leased Property, free and clear of all recorded liens, encumbrances, easements, public rights-of-way, assessments, leases, taxes and any or all other interests, excepting only Permitted Encumbrances. For and in consideration of the application by the Corporation of funds in accordance with Section 3.1, the City hereby leases the Leased Property to the - Corporation, and the Corporation hereby leases the Leased Property from the City, for a term which is coterminous with the Term of this Lease. No merger shall be effected by the City's lease of the Leased Property to the Corporation under this Section 4.1, and the Corporation's sublease of the Leased Property back to the City under Section 4.2. SECTION 4.2. Sublease of Leased Property by Corporation Back to City. The Corporation hereby subleases the Leased Property back to the City, and'the City hereby subleases-the Leased Property from the Corporation. The Leased Property shall be subleased to the City under this Lease upon,the terms and provisions hereof. SECTION 4.3. Term. The Term of'this Lease commences on the date of recordation of this Lease and ends on the date on which all of the Lease Payments have been paid in full. The provisions of this Section 4.3 are subject to the provisions of Section 6.2 relating to the taking in eminent domain of the Leased Property or any portion thereof. SECTION 4.4. Lease Payments. (a) Obligation to Pay. Subject to the provisions of Section 6 2 and the provisions of Article IX, the City agrees to pay to the Corporation, its successors and assigns, the Lease Payments (denominated into components of principal and interest) in the respective amounts specified in Appendix B attached hereto (including any supplements thereto) and by this reference incorporated herein, to be due and payable in immediately available funds on each of the respective Lease Payment Dates specified in Appendix B. The Lease Payments payable in any Rental Period with respect to the -8- 15 i Leased Property shall be for the use of the Leased Property during.such Rental'P�eriod. The interest components of the Lease Payments have been calculated based on an interest rate of 4.250% per annum, on the basis of a 360-day year of twelve 30-day months. (b) Effect of Prepayment. If the City prepays all Lease Payments in full under Sections 9.2 or 9.3, the City's obligations under this Section will thereupon cease and terminate. If the City prepays the Lease Payments in part but not in whole under Section 9.3, the principal components of the remaining Lease Payments will be reduced on a pro rata basis; and the interest component of each remaining Lease Payment will be reduced on a pro rata basis. (c) Rate on Overdue Payments. If the City fails to make any of the payments required in this Section 4.4, the payment in default will continue as an obligation iof the City until the amount in default has been fully paid, and the City agrees to pay thell same with interest thereon, from the date of default to the date of payment at the rate iof S% per annum. J (d) Fair Rental Value. The Lease Payments coming due and payable during each Rental Period constitute the total rental for the Leased Property for such Rental Period, and will be paid by the City in each Rental Period for and in consideration Iof the right of the use and occupancy of, and the continued quiet use and enjoyment lof the Leased Property during each Rental Period. The parties hereto have. agreed and determined that the total Lease Payments represent the fair rental value of the Leased Property. In making this determination, consideration has been given to the estimated fair market value of the Leased Property, the costs of financing the deposit required to be made under Section 3.1, other obligations of the City and the Corporation under this Lease, the uses and purposes which may be served by the Leased Property and the benefits therefrom which will accrue to the City and the general public. (e) Source of Payments; Budget and Appropriation. The Lease Payments are payable from any source of legally available funds of the City, subject to the provisions of Sections 6.2 and 9.1. The City covenants to,take such action as may be necessary to include all Lease Payments in each of its annual budgets during the Term of this Lease and to make the, necessary annual appropriations for all such Lease Payments. The covenants on the,part of the City herein contained constitute duties imposed by law and it is the duty of each and every public official of the City to take such action and do such things as are required by law in the performance of the official duty of such officials to enable the City to carry out and perform the covenants and agreements in this Lease agreed to be carried out and performed by the City. (f) Assignment. The City understands and agrees that all Lease Payments have been assigned by the Corporation to the Assignee under the Assignment of Lease, and the City hereby assents to such assignment. The Corporation hereby directs the City, and the City hereby agrees, to pay to the Assignee all payments payable by the City under this Section 4.4 and all amounts payable by the City under Article IX. .SECTION 4.5. Quiet Enjoyment. Throughout the Term of this Lease, the Corporation will provide the City with quiet use and enjoyment of the Leased Property and the City will peaceably and quietly have and hold and enjoy the Leased Property, without suit, trouble or hindrance from the Corporation, except as expressly set forth in this Lease. The Corporation will, at the request of the City and at the City's cost, joins in I -9= i j 16 any legal action in which the City asserts its right to such possession and enjoyment to the extent the Corporation may lawfully do so. Notwithstanding the foregoing, the Corporation has the right to inspect the Leased Property as provided in Section 7.2. SECTION 4.6. Title. At all times during the Term of this Lease, the City shall hold title to the Leased Property, including all additions which comprise fixtures, repairs, replacements or modifications thereto, subject to Permitted Encumbrances and subject to the provisions of Section 7.2. Upon the termination of this Lease (other than under Section 8.2(b) hereof), all right, title and interest of the Corporation in and to the Leased Property shall be transferred to and vested in the City. Upon the payment in full of all Lease Payments allocable to the Leased Property, or upon the deposit by the City of security for such Lease Payments as provided in Section 9.1, all right, title and interest of the Corporation in and to the Leased Property shall be transferred to and vested in the City. The Corporation',agrees to take any and all steps and execute and record' any and all documents reasonably required by the City to consummate any such transfer of title. SECTION 4.7. Release of Excess Property. The City may any time and from time to time, release any portion the Leased Property (the "Released Property") from the Lease, with the prior written consent of the Assignee (which may not unreasonably be withheld) and upon satisfaction of all of the following requirements which are conditions precedent to such release: (a) The City shall certify to the Corporation and the Assignee that no Event of Default has occurred and is continuing; (b) The City shall file with the Corporation and the Assignee, and cause to be recorded in the office of the Humboldt County Recorder an amendment to this Lease which deletes the Released Property from the description of the Leased Property; and (c) The City shall file with the Corporation and the Assignee a written certificate of the City stating the City's •determination that the estimated value of the real property which will remain leased under this Lease following such release is at least equal to the original principal components of the Lease Payments. Upon the satisfaction of all such conditions precedent, the Term of this Lease will thereupon end as to the Released Property. The City is not entitled to any reduction, diminution, extension or other modification of the Lease Payments whatsoever as a result of such release. The Corporation and the City shall execute, deliver and cause to be recorded all documents required to discharge this. Lease of record against the Released Property. -10- 17 i I i I ARTICLE V f MAINTENANCE; TAXES; INSURANCE; AND I OTHER MATTERS SECTION 5.1. Maintenance, Utilities, Taxes and Assessments. Throughout the Term of this Lease, as part of the consideration for the rental of the Leased Property, all improvement, repair and maintenance of the Leased Property are the sole responsibility of the City, and the City will pay for or otherwise arrange for the payment of all utility services supplied to the Leased Property, which may include, without limitation, !janitor service, security, power, gas, telephone, light, heating, water and all other! utility ; services, and shall pay for or otherwise arrange for the payment of the cost of the;repair and replacement of the Leased Property resulting from ordinary wear and tear or want of care on the part of the City or any assignee or sublessee thereof. In exchange for the Lease Payments herein provided, the Corporation agrees to provide only the Leased Property, as hereinbefore more specifically set forth. The City waives the benefits of subsections 1 and 2 of Section 1932, Section 1933(4) and Sections 1941 and 1942 of the California Civil Code, but such waiver does not limit any of the rights of the City under the terms of this Lease. The City will pay or cause to be paid all taxes and assessments of any type or nature, if any, charged to the Corporation or the City affecting the Leased Property or the respective interests or estates therein; provided that with respect to special assessments or other governmental charges that may lawfully be paid in installments over a period of years, the City is obligated to pay only such installments as are required to be paid during the Term of this Lease as and when the same become due. The City may, at the City's expense and in its name, in good faith contest any such taxes, assessments, utility and other charges and, in the event of any such contest, may permit the taxes, assessments or other charges so contested to 'remain unpaid during the period of such contest and any appeal therefrom unless the Corporation shall notify the City that, in its reasonable opinion, by nonpayment�of any such items the interest of the Corporation in the Leased Property will be materially endangered or the Leased Property or any part thereof will be subject to loss or forfeiture, in which event the City will promptly pay such taxes, assessments or charges or provide the Corporation with full security against any loss which may result from nonpayment, in form satisfactory to the Corporation. i I SECTION 5.2. Modification of Leased Property. The City has the right, at its own expense, to make additions, modifications and improvements to the Leased Property or any portion thereof. All additions, modifications and improvements to the Leased Property will thereafter comprise part of the Leased Property and become subject to the provisions of this Lease. Such additions, modifications and improvements may, not in any way damage the Leased Property, or cause the Leased Property to be used for purposes other than those authorized under the provisions of state and federal law; and the Leased Property, upon completion of any additions, modifications and improvements made thereto under this Section, must be of a value which is not substantially less than the value thereof immediately prior to the making of such additions, modifications and improvements. i -11- 1R SECTION 5.3. Public Liability Insurance. The City shall maintain or cause to be maintained throughout the Term of this Lease a standard comprehensive general insurance policy or policies in protection of the City, the Assignee and their respective members, officers, agents, employees and assigns. Said policy or policies shall provide for indemnification of said parties against direct or contingent loss or liability for damages for bodily and personal injury, death or property damage occasioned by reason,of the operation of the Leased Property. Such policy or policies must provide coverage of at least $1,000,000 and may be subject to such deductibles as the,City deems adequate and, prudent. Such insurance may be maintained as part of .or in conjunction with any other insurance coverage carried by the City, and may be maintained in whole or in part in the form of,the participation by the City in a joint powers authority,or other program providing pooled insurance. The City will apply the proceeds of such liability insurance toward extinguishment or satisfaction of the liability with respect to which such proceeds have been paid. .SECTION 5.4. Casualty Insurance. The City will procure and maintain, or cause to be procured and maintained, throughout the Term of this Lease, casualty insurance against loss or damage to all buildings situated on the Leased Property and owned by the City, in an amount at least equal to the replacement value of the insured buildings. Such insurance must, as nearly as practicable, cover loss or damage by all "special form" perils. Such insurance shall be subject to a deductible of not to exceed $250,000. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the City, and may be maintained in whole or in part in the form of the participation by the City in a joint powers authority or other program,providing pooled insurance. The City will apply the Net Proceeds of such insurance as provided in Section 6.1. J SECTION 5.5. Rental Interruption Insurance. The City will procure and maintain, or cause to be procured and maintained, throughout the Term of this Lease, rental interruption or use and occupancy insurance to cover loss, total or partial, of the use of the Leased Property and the improvements situated thereon as a result of any of the hazards covered in the insurance required by Section 5.4, in an amount at least equal to the maximum Lease Payments coming due and payable during ,any future 24.month period. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the City, and may be maintained in whole or in part in the form of the participation by the City in a joint powers authority or other program providing pooled insurance. The City will apply the Net Proceeds of such insurance towards the payment of.the Lease Payments allocable to the insured improvements as the same become due and payable. SECTION 5.6. Worker's Compensation Insurance. If required by applicable California law, the City shall carry worker's compensation insurance covering all employees on, in, near or about the Leased Property and, upon request, shall furnish to the Corporation certificates evidencing such coverage throughout the Term of this Lease. SECTION 5.7. Recordation Hereof, Title Insurance. On or before the Closing Date, the City shall, at its expense, (a) cause this Lease, or a memorandum hereof or thereof in form and substance approved by Bond Counsel, to be recorded in the office of the San Bernardino County Recorder with respect to the Leased Property, and (b) obtain a CLTA title insurance policy insuring the Assignee's interests in the leasehold estate established hereunder in the Leased Property, subject only to Permitted -12- 19 i i i Encumbrances, in an amount equal to the original principal components of the Lease Payments. The City will apply the Net Proceeds received under such title insurance policy to prepay the remaining Lease Payments under Section 9.3. SECTION 5.8. Insurance Net Proceeds, Form of Policies. All insurance policies (or riders) required by this Article V shall be taken out and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State of California, and shall contain a provision that the insurer shall not cancel or revise coverage thereunder without giving written notice to the insured parties at least ten days before the cancellation or revision becomes effective. Each insurance policy or rider required by Sections 5.3, 5.4 and 5.5 shall name the City and the Assignee as insured parties and the Assignee as loss payee and shall include a lender's loss payable endorsement for the benefit of the Assignee. )In the case of coverage pursuant to Section 5.3, the Assignee shall be added as an additional insured for coverage up to $1,000,000. Prior to the Closing Date, the City will deposit with the Assignee policies (and riders and endorsements, if applicable) evidencing any such insurance procured by it, or a certificate or certificates of the respective insurers stating that such insurance is in full force and effect. Before the expiration of any such policy (or rider), the City will furnish to the Assignee evidence that the policy has been renewed or replaced by another policy conforming to the provisions of this Article V unless such insurance is no longer obtainable, in which event the City shall notify the Assignee of such fact. SECTION 5.9. Installation of City's Personal Property. The City may at any time and from time to time, in its sole discretion and at its own expense, install or permit to be installed other items of equipment or other personal property in or upon the Leased Property. All such items shall remain the sole property of the City, in which the Corporation has no interest, and may be modified or removed by the City at any time. The City must repair and restore any and all damage to the Leased Property resulting from the installation, modification or removal of any such items. Nothing in this�Lease prevents the City from purchasing or leasing items to be installed under this Section under a lease or conditional sale agreement, or subject to a vendor's lien or security agreement, as security for the unpaid portion of the purchase price thereof, provided that no such lien or security interest may,attach to any part of the Leased Property. SECTION 5.10. Liens. The City will not, directly or indirectly, create] incur, assume or suffer to exist any mortgage, pledge, lien, charge, encumbrance or claim on or with respect to the Leased Property, other than as herein contemplated and except for such encumbrances as the City certifies in writing to the Corporation do not materially and adversely affect the leasehold estate in the Leased Property hereunder and for which the Assignee approves in writing, which approval may not be unreasonably withheld. Except as expressly provided in this Article V, the City will promptly, at its own expense, take such action as may be necessary to duly discharge or remove any such mortgage, pledge, lien, charge, encumbrance or claim, for which it is responsible, if the same shall arise at any time. The City will reimburse the Corporation for any expense incurred by it in order to discharge or remove any such mortgage, pledge, lien, charge, encumbrance or claim. SECTION 5.11. Advances. If the City fails to perform any of its obligations under this Article V, the Corporation may take such action as may be necessary to cure such failure, including the advancement of money, and the City shall be obligated to repay all i i -13- ?n such advances as additional rental hereunder, with interest at the rate set forth in Section 4.4(c). ARTICLE VI EMINENT DOMAIN; USE OF NET PROCEEDS Section 6.1. Eminent Domain. If all of the Leased property shall be taken permanently under the power of eminent domain or sold to a government threatening to \ exercise the power of eminent domain, the Term of this Lease Agreement shall cease as of the day possession shall be so taken. If less than all of the Leased property shall be taken permanently, or if all of the Leased property or any part thereof shall be taken temporarily under the power of eminent domain, -(1) this Lease Agreement shall continue in full force and effect'and shall not be terminated by virtue of such taking and the parties waive the benefit of any law to the contrary, and (2) there shall be a partial abatement of Lease Payments as a result of the application of the Net Proceeds of eminent domain award to the prepayment of the Lease Payments hereunder, in an amount to be agreed upon by the City and the Corporation and communicated to the Assignee such that the resulting Lease Payments represent fair consideration for the use and occupancy of the remaining usable portion of the Leased Property. Section 6.2. Application of-Net Proceeds. (a) From Insurance Award. (i) Any Net Proceeds of insurance against damage to or destruction of any part of the Leased Property collected by the City in the event of any such damage or'destruction shall be deposited by the City promptly upon receipt thereof in a special fund designated as the "Insurance Condemnation Fund." (ii) Within ninety (90) days following the date of such deposit, the City shall determine and notify the Corporation and the Assignee in writing of its determination either (A) that the replacement, repair, restoration, modification or improvement of the Leased Property is not economically .feasible or in the best interest of the 'City, or (B) that all or a portion of such Net Proceeds are to be applied to the prompt replacement, repair, restoration, modification or improvement of the damaged or destroyed portions of the Leased Property. (iii) In the event the City's determination is as set forth in clause (A) of subparagraph (ii) above, such Net Proceeds shall be promptly applied to the prepayment of the Lease Payments pursuant to Section 9.3 of this Lease Agreement; provided however, that in the event of damage or destruction of the Leased Property in full, such Net Proceeds may be so applied only if sufficient, together with other moneys available therefore, to cause the prepayment of the principal components of all unpaid Lease Payments pursuant to Section 9.3 of this Lease Agreement; provided further, however, that in the event of damage or destruction of the Leased Property in part, such Net. Proceeds may be applied to the prepayment of Lease Payments only if the resulting Lease Payments represent fair consideration for the remaining portions of the Leased Property, evidenced by a certificate signed by a City Representative. -14- 21 i i (iv) In the event the City's determination is as set forth in clause (b) of the subparagraph (ii) above, such Net Proceeds shall be applied to the prompt replacement, repair restoration, modification or improvement of the damaged or destroyed portions of the Leased Property by the City. (b) From Eminent Domain Award. (v) If the City has given written notice to the Corporation and the Assignee of its determination that (A) such eminent domain proceedings have not materially affected the operation of the Leased Property or the ability of the City to meet any of its obligations with respect to the Leased Property under this Lease Agreement, and (B) such proceeds are not needed for repair or rehabilitation of the Leased Property, the City shall so certify to the Corporation and the Assignee, and the Cifiy shall credit such proceeds towards the prepayment of the Lease Payments pursuant to Section 9.3 of this Lease Agreement. (vi) If the City has given written notice to the Corporation and the Assignee of its determination that (A) such eminent domain ,proceedings have not materially affected the operation of the Leased Property or the ability of the City to meet any of its obligations with respect to the Leased Property under this Lease Agreement, and (B) such proceeds are needed for repair or rehabilitation of the Leased Property, the City shall so certify to the Corporation and the Assignee, and the City shall, apply such amounts for such rehabilitation. j (vii) If (A) less than all of the Leased Property shall have been taken in such eminent domain proceedings or sold to a government threatening the use of eminent domain powers, and if the City has given written notice to the Corporation and the Assignee of its determination that such eminent domain proceedings have materially affected the operation of the Leased Property or the ability of the City to meet any of its obligations with respect to the Leased Property under the Lease Agreement, or (B) all of the Leased Property shall have been taken in such eminent domain proceedings, then the City shall credit such proceeds towards the prepayment of the Lease Payments pursuant to Section 9.3 of the Lease Agreement. I (viii) In making any determination under this Section 6.2(b), the City may, but shall not be required to, obtain at its expense, the report i of an independent engineer or other independent professional consultant, a copy ofj which shall be filed with the Corporation and the Assignee. Ay such determination by the City shall be final. C. From Title Insurance. The Net Proceeds from the title insurance award shall be deposited by the City in the Insurance and Condemnation fund and credited towards the prepayment of Lease Payments required to be paid pursuant to Section 9.3 of this Lease Agreement. Section 6.3. Abatement of Lease Payments in the Event of Damage or Destruction. Lease Payments shall be abated during any period in which, by reason of damage or destruction, there is substantial interference with the use and occupancy by the City of the Leased Property or any portion thereof to the extent to be agreed upon by the City, the Corporation and the Assignee. The parties agree that the amounts of the Lease Payments under such,circumstances shall not be less than the amounts! of the i I -15- 22 unpaid Lease Payments as are then set forth in Exhibit B, unless such unpaid.amounts are determined to be greater than the fair rental value of the portions of the Leased Property not damaged or destroyed, based upon an appropriate method of valuation, in which event the Lease Payments shall be abated such .that they represent said fair rental value. Such abatement shall continue for the period commencing with such damage or destruction and ending with substantial completion of foregoing, there shall be no abatement of Lease Payments under this Section 6.3 to the extent that (a) proceeds of rental interruption insurance or (b) amounts in the Insurance Condemnation Fund are available to pay Lease Payments which would otherwise be abated under this Section:6.3, it being hereby declared that such proceeds and amounts constitute special funds for the payment of the Lease Payments. ARTICLE-VII OTHER COVENANTS OF THE CITY SECTION 7.1. Disclaimer of Warranties. THE CORPORATION MAKES NO AGREEMENT, WARRANTY ' OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY OR FITNESS- FOR , ANY PARTICULAR PURPOSE OR FITNESS :FOR THE USE CONTEMPLATED BY THE CITY OF THE LEASED PROPERTY OR ANY PORTION THEREOF, OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE LEASED PROPERTY OR ANY. PORTION THEREOF. THE CITY ACKNOWLEDGES THAT THE CORPORATION IS NOT A'MANUFACTURER OF ANY PORTION OF THE LEASED PROPERTY OR A DEALER THEREIN, THAT THE CITY LEASES THE LEASED PROPERTY AS-IS, IT BEING AGREED THAT ALL OF THE AFOREMENTIONED RISKS ARE TO BE BORNE BY THE -CITY. In no,event is the Corporation liable for incidental, indirect,: special or consequential damages, in connection with or arising out of this Lease for the existence, furnishing, functioning or use of the Leased Property,by the City. SECTION 7.2. Access to the Leased Property. The City agrees that the Corporation, and the Corporation's successors or assigns, has the right at all reasonable times, following at least 48 hours written notice provided to the City, to enter upon and to examine and inspect the Leased Property or any part thereof. The City further agrees that the Corporation, and the Corporation's successors or assigns shall have such rights of access to the Leased Property or any component thereof, following at least 48,hours written notice provided to the City, as may be reasonably necessary to cause the. proper maintenance of the Leased Property if the- City fails to perform its obligations hereunder. Neither the-Corporation nor any of its assigns has any obligation to cause such proper maintenance. SECTION 7.3. Release and Indemnification Covenants. , The City hereby indemnifies the Corporation, the Assignee and their respective officers, agents, successors and assigns against all claims, losses and damages, including legal fees and expenses, arising out of (a) the use, maintenance, condition or management of, or from any work or thing. done on the Leased Property by the City; (b) any breach or default on the part of the City in the performance of any of its obligations under this Lease, (c) any negligence or willful misconduct of the City or of any of its agents, contractors, servants, employees or licensees with respect to the Leased Property, (d) -16- 23 i i i any intentional misconduct or negligence of any sublessee of the City with respect Ito the Leased Property, (e) the acquisition, construction, improvement and equipping Hof the Leased Property, or (f) the clean-up of any hazardous materials or toxic wastes from the Leased Property, or the authorization of payment of the costs thereof. No indemnification is made under this Section or elsewhere in this Lease for; willful misconduct or gross negligence under this Lease by the Corporation, the Assignee, or their respective officers, agents, employees, successors or assigns. SECTION 7.4. Assignment by the, Corporation. The Corporation's rightsi under this Lease, including the right to receive and enforce payment of the Lease Payments to be made by the City hereunder, have been assigned to the Assignee. The City hereby consents to such assignment. Whenever in this Lease any reference is made!to the Corporation and such reference concerns rights which the Corporation has assiglned to the Assignee, such reference shall be deemed to refer to the Assignee. i The Corporation and the Assignee may make additional assignments of their interests herein, but no such assignment'will be effective as against the City unless and until the Corporation or the Assignee has filed with the City written notice thereof. The City shall pay all Lease Payments hereunder under the written direction of the Corporation or the assignee named in the most recent assignment or notice of assignment filed with the City. During the Term of this Lease, the City will keep a complete and accurate record of all such notices of assignment. SECTION 7.5. Assignment and Subleasing,by the City. This Lease may not be assigned by the City. The City may sublease the Leased Property, or any portion thereof, subject to all of the following conditions: a (a) This Lease and the obligation of the City to make Lease Payments! - hereunder shall remain obligations of the City. (b) The City shall, within 30 days after the delivery thereof, furnish or l cause to be furnished. to the Corporation and the Assignee a true and,complete copy of such sublease. (c) No such sublease by the City may cause the Leased Property to be used fora purpose other than as may be authorized under the provisions of the laws of the State of California. (d) The City shall furnish the, Corporation and the Assignee with a written opinion of Bond Counsel stating, that such sublease does not cause the interest components of the Lease Payments to become includable in gross income for purposes of federal income taxation or to become subject to personal income taxation by the State of California. SECTION 7.6. Amendment of Lease Agreement. This Lease may be amended with the prior written consent of the Corporation and Assignee (which may not unreasonably be withheld). Prior to the effective date of any such amendment, and as a condition precedent to the effectiveness thereof, the City at its expense shall obtain an opinion of Bond Counsel stating that such amendment will not adversely affect the exclusion from gross income of the interest component of the Lease Payments. i I -17- 2' SECTION 7.7. Tax Covenants. (a) Generally. The City will not take any action or permit to be taken any action within its control which would cause or which, with the passage of time if not cured would cause, the interest components of the Lease Payments to become includable in gross income for federal income tax purposes. '(b) Private Activity Bond Limitation. The City will ensure that the proceeds of the Lease Payments are not so used as to cause the City's obligations hereunder to satisfy the private business tests of Section 141(b) of the Tax Code or the private loan financing test of Section 141(c) of the Tax Code. (c) Federal Guarantee Prohibition. The City will not take, any action or permit or suffer any action to be taken if the result of the same would be to cause the Lease Payments to be "federally guaranteed" within the meaning of Section 149(b) of the Tax Code. (d) No Arbitrage. The City will not take, or permit- or suffer to be taken, any action with respect to the proceeds of the Lease Payments which, 'if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the Closing Date would have caused the Lease Payments to be "arbitrage bonds" within the meaning of Section 148(a) of the Tax Code.' (e) Small Issuer Exemption from Bank Nondeductibility Restriction. The 1997 Certificates were designated by the City for purposes of Section 265(b)(3) of the Tax Code, and not more than $10,000,000 aggregate principal amount of obligations the interest on which is excludable (under Section 103(a) of the Tax Code) from gross income for federal income tax purposes (excluding (i) private activity bonds, as defined in Section 141 of the Tax Code, except qualified 501(c)(3) bonds as defined in Section 145 of the Tax Code, and (ii) current refunding obligations to the extent the amount of the refunding obligation does not exceed the outstanding amount of the refunded obligation), including the 1997 Certificates, were issued by the City, including all subordinate entities of the City, during the calendar year in which the 1997 Certificates were issued. The average maturity date of the Lease Payments is not later than the average maturity date 1997 Certificates and the 1997 Lease Payments. The last Lease Payment Date is not more than 30 years -after the date of issuance of the 1997 Certificates. The aggregate principal amount of the Lease Payments does not exceed $10,000,000. By reason of the statements set forth in this subsection (e), the Lease Payments are deemed designated for purposes of Sectiori'265(b)(3) of the Tax Code. '(f) Arbitrage Rebate. The City will take any and all actions necessary to assure compliance with Section 148(f) of the Tax Code, relating to the rebate of excess investment earnings, if any, to the federal government, to the extent that such section is applicable to the Lease Payments. -18- 25 i I 1 I I ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES SECTION 8.1. Events of Default Defined. Any one or more of the following events constitutes an Event of Default hereunder: i (a) Failure by the City to pay any Lease Payment or other payment required to be paid hereunder at the time specified herein. (b) Failure by the City to observe and perform any covenant, condition f or agreement on its part to be observed or performed hereunder, ; other than as referred to in the preceding clause (a) of this Section, for a period of 30 days after written notice specifying such failure' and requesting that it be remedied has been given to the City by the Corporation or the Assignee. However, if in the reasonable opinion of the City the failure stated in the notice can be corrected, but not within such 30-day period, the Corporation and the Assignee shall not unreasonably withhold their consent to an extension of such time (for a period not to exceed 60 days) if corrective action is instituted by the City within such 30-day period and diligently pursued until the default is corrected. (c). The filing by the City of a voluntary petition in bankruptcy, or failure; by the City promptly to lift any execution, garnishment orj attachment, or adjudication of the City as a bankrupt, or' r` assignment by the City for the benefit of creditors, or the entry by the City into an agreement of composition with creditors, or the: approval by a court of competent jurisdiction of a petition applicable' to the City in any proceedings instituted under the provisions of the! Federal Bankruptcy Code, as amended, or under any similar acts; which may hereafter be enacted. SECTION 8.2. Remedies on Default. Whenever any Event of Default has happened and is continuing, the Corporation may exercise any and all remedies available under law or granted under this Lease; provided, however, that notwithstanding anything herein to the contrary, there shall be no right under any circumstances to accelerate the Lease Payments or otherwise declare any' Lease Payments not then in default to be immediately due and payable. Each and every covenant hereof to be kept and performed by the City is expressly made a condition and upon the breach thereof the Corporation may exercise any and all rights granted hereunder; provided, that no termination of this Lease shall be effected either by operation of law or acts of the parties hereto, except only in the manner herein expressly provided. Upon the occurrence and during the continuance of any Event of Default, the Corporation may exercise any one or more of the following remedies: (a) Enforcement of Payments Without Termination. If the Corporation does not elect to terminate this Lease in the manner hereinafter, provided for in subparagraph (b) hereof, the City agrees to and, shall remain liable for the payment of all Lease Payments and the; performance of all conditions herein contained and shall reimburse; the Corporation for any deficiency arising out of the re-leasing of, -19- 2f the Leased Property,.or, if the Corporation is unable to re-lease the Leased Property, then for the full amount of all Lease Payments to the end of the Term of this Lease, but said Lease Payments and/or deficiency shall be payable only at the same time and in the same manner as hereinabove provided for -the payment of Lease Payments hereunder, notwithstanding such entry or re-entry by the Corporation or any suit in unlawful detainer, or otherwise, brought by the Corporation for the purpose of effecting such re-entry or obtaining possession of the Leased Property or the exercise of any other remedy by the Corporation. The City hereby irrevocably appoints the Corporation as the agent and attorney-in-fact of the City to enter upon and re-lease the Leased Property upon the occurrence- and continuation of an Event of Default and to remove all personal property whatsoever situated upon the Leased Property, to place such property in storage•or other suitable place in the County of Humboldt for the account of and at the expense of the City, and the City hereby exempts and agrees to save harmless the Corporation from any costs, loss or damage whatsoever arising or occasioned by any such entry upon and re-leasing of the Leased Property and .the removal and storage of such property by the Corporation or its duly authorized agents in accordance with the provisions herein contained. The City agrees that the terms of this Lease constitute full and sufficient notice of the right of the Corporation to re-lease the Leased Property in the event of such re- entry without effecting a surrender of this Lease, and further agrees that no acts of the Corporation in effecting such re-leasing shall constitute a surrender or termination of this Lease irrespective of the term for which such re-leasing is made or the terms and conditions of such re-leasing, or otherwise, but that, on the contrary, in the event of such default by the City the right to terminate this Lease shall vest in the Corporation to be effected in the sole and exclusive manner hereinafter provided •for in subparagraph (b) hereof. The City agrees to surrender and quit possession of the Leased Property upon demand of the Corporation for the purpose-of enabling the Leased Property to be re-let under this paragraph, and the City further waives the right to any rental obtained by the Corporation in excess of the Lease Payments and hereby conveys and releases such excess to the Corporation as compensation to the Corporation for its services in re-leasing the Leased Property. (b) Termination of Lease. If an Event of Default occurs and is continuing hereunder, the Corporation at its option may terminate this Lease and re-lease all or any portion of the Leased Property. If the Corporation terminates this Lease at its option and in the manner hereinafter provided due to a default by the City (and notwithstanding any re-entry upon the Leased Property by the Corporation in any manner whatsoever or the re-leasing of the Leased Property), the City nevertheless agrees to pay to the Corporation all costs, loss or damages howsoever arising or occurring payable at the same time and in the same manner as is herein provided in the case of payment of Lease Payments and -20- 27 1 I Additional Payments. Any surplus received by the Corporation from I such re-leasing shall be applied by the Corporation to Lease Payments due under this Lease. Neither notice to pay rent or to deliver up possession of the premises given under law nor any proceeding in unlawful detainer taken by the Corporation shall of itself operate to terminate this Lease, and no termination of this Lease on account of default by the City shall be or become j effective by operation of law, or otherwise, unless and until the Corporation shall have given written notice to the City of the 1 election on the part of the Corporation to terminate this Lease. The i City covenants and agrees that no surrender of the Leased Property, or of the remainder of the Term hereof or any termination of this Lease shall be valid in any manner or for any purpose whatsoever unless stated or accepted by the Corporation by such written notice. (c) Proceedings at Law or In Equity. If an Event of Default occurs and continues hereunder, the Corporation may take whatever action at law or in equity may appear necessary or desirable to collect the amounts then due and thereafter to become due hereunder or to enforce any other of its rights hereunder. SECTION 8.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Corporation is intended to be exclusive and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Lease or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon the occurrence of any Event of Default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Corporation to exercise any remedy reserved to it in this Article VIII it shall not be necessary to give any notice, other than such notice as may be required �in this Article VIII or by law. SECTION 8.4. Agreement to Pay Attorneys' Fees and Expenses. If eitherr party to this Lease defaults under any of the provisions hereof and the nondefaulting party should employ attorneys (including in-house legal counsel) or incur'other expenses for the collection of moneys or the enforcement or performance or observance of any obligation or agreement on the part of the defaulting party herein contained, the defaulting party agrees that it will on demand therefor pay to the nondefaulting party the reasonable fees of such attorneys (including allocable costs and expenses of in!house legal counsel, if any) and such other expenses so incurred by the nondefaulting party. SECTION 8.5. No Additional Waiver Implied by One Waiver. If any agreement contained in this Lease is breached by either party and thereafter waived by the other party, such waiver.is limited to the particular breach so waived and will not be deemed to waive any other breach hereunder. SECTION 8.6. Assignee to Exercise Rights. Such rights and remedies as are given to the Corporation under this Article'VIII have been assigned by the Corporation to the Assignee, to which assignment the City hereby consents. Such rights and rer'iedies shall be exercised-solely by the Assignee. 1 -21- 1 28 ARTICLE IX PREPAYMENT OF LEASE PAYMENTS SECTION .9.1. Security Deposit. Notwithstanding any other provision of this Lease, the City may on any date secure the.payment of the Lease Payments in whole or in part ,by depositing with a fiduciary, in trust, an amount of cash which is either (a) sufficient to pay such-Lease Payments, including the principal and interest components thereof, in accordance with the Lease Payment schedule set forth in Appendix B, or (b) invested in whole in non-callable Federal Securities in an amount which is sufficient, in the opinion of an independent certified. public accountant, together with interest to accrue thereon and together with any cash which is so deposited, to-pay such Lease Payments when due under Section 4.4(a) or when due on any optional prepayment.date under Section 9.2, as the City instructs at the time of.said deposit. In the event of a security deposit under this Section with respect to all unpaid Lease Payments, (a) the Term of this Lease shall continue, (b) all obligations of the City under this Lease, and all security provided by this Lease for said obligations, shall thereupon cease and terminate, excepting only the obligation of the City to make, or cause to be made all of the Lease Payments from such security deposit, and (c) under Section 4.6, title to the Leased Property will vest in the City on the date of said deposit automatically and without further action by the City or the Corporation. The City hereby grants a first priority security interest in and the lien on said security deposit and all proceeds thereof in favor of the Corporation and the Assignee. Said security deposit shall be deemed to be and shall constitute a special fund for the payment of Lease Payments in accordance with the provisions of this Lease. ` SECTION 9.2. Optional Prepayment. The City may prepay the unpaid principal components�of the Lease Payments in whole_ or in part, on any Lease Payment Date on or after September 1, 2014, by paying a prepayment price equal to the principal components of the Lease Payments to be prepaid, together with the interest required to be paid on such Lease Payment Date, plus a prepayment penalty (expressed as a percentage of the principal amount to be prepaid), as set forth in the.following table: Prepayment Date Prepayment Penalty September 1, 2014 and March 1, 2015 2.00% September 1, 2015 and March 1, 2016 1 00 September 1, 2016 and-thereafter 0.00 The City shall give the Corporation notice of its intention to exercise its option not less than 30 days in advance of the date of exercise. SECTION 9.3. Mandatory Prepayment From Net Proceeds of Insurance or Eminent Domain. The City shall be obligated to prepay the unpaid principal components of the Lease Payments in whole, or in part- on any date, from and to the extent of any proceeds of insurance award or condemnation award with respect to the Leased Property to be used for such purpose under Section 6.1. The City and the Corporation hereby agree that such proceeds, to the extent remaining after payment of any -22- 29 i { i I j i I delinquent Lease Payments, shall be credited towards the City's obligations under this Section 9.3. i ARTICLE X i MISCELLANEOUS SECTION 10.1. Notices. Any notice, request, complaint, demand o I other communication under this Lease shall be given by first class mail or personal delivery to the party entitled thereto at its address set forth below, or by facsimile transmission or other form of telecommunication, at its number set forth below. Notice shall be effective either (a) upon transmission by facsimile transmission or other foam of telecommunication, (b) 48 hours after deposit in the United States of America first class mail, postage prepaid, or (c) in the case of personal delivery to any person, upon actual receipt. The Corporation, the City and the Assignee may, by written notice to the other parties, from time to time modify the address or number to which communications are to be given hereunder. If to the City: City of Grand Terrace Acting City Manager 22795 Barton Road { Grand Terrace, California 92324 Fax: (909) 783-7629 If to the Corporation: Municipal Finance Corporation 23945 Calabasas Road, Suite 103 Calabasas, California 91302 Attention: President Fax: (818) 224-4789 If to the Assignee: City National Bank 555 South Flower Street, 24th Floor Los Angeles, California 91302 Attention: Senior Vice President Fax: (213) 637-3919 SECTION 1.0.2. Binding Effect. This Lease inures to the benefit of and is binding upon the Corporation, the City and their respective successors and assigns. SECTION 10.3. Severability. If any provision of this Lease is held invalid or unenforceable by any court of competent jurisdiction, such holding will not invalidate or render unenforceable any other provision hereof. SECTION 10 4. Net-net-net Lease. This Lease is a "net-net-net lease, and the City hereby agrees that the Lease Payments are an absolute net return to the Corporation, free and clear of any expenses, charges or set-offs whatsoever. i I i -23- i �C SECTION 10.5. Further Assurances and Corrective Instruments. The Corporation and the City agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Leased Property hereby leased or intended so to be or for carrying out the,expressed intention of this Lease. SECTION 10.6. Execution in Counterparts. This Lease may be executed in several counterparts, each of which is an original and all of which constitutes one and the same instrument. 'SECTION 10.7. Applicable Law. This Lease is governed by and construed in accordance with the laws of the State of California. SECTION 10.8. Captions. The captions or headings in this Lease are for convenience only and in no way define, limit or describe the scope or intent of any provisions or Section of this Lease. IN WITNESS'WHEREOF, the Corporation and the City have caused this Lease to be executed,in their respective names by their duly authorized officers, all as of the date first above written. CITY OF GRAND TERRACE, as Lessor and Sublessee BY Acting City Manager Attest: City Clerk MUNICIPAL FINANCE CORPORATION, as Lessee and Sublessor By President -24- 31 i r APPENDIX A 1 DESCRIPTION OF THE LEASED PROPERTY i PARCEL NO. 1: I PORTION OF LOTS 9 AND 16, R.W.A. GODFREYT SUBDIVISION OF THE SOUTHWEST 1/4 OF SECTION 33, TOWNSHIP I SOUTH, RANGE 4 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE Of CALIFORNIA AS PER PLAT RECORDED IN BOOK 13 OF MAPS, PAGE 23, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO RALPH R. BAHL AND WIFE BY DEED RECORDED j SEPTEMBER 5, 1950, IN BOOK 2633 PAGE 274, OFFICIAL RECORDS, SAIDI POINT BEING IN THE NORTH LINE OF PALM AVENUE, 1256.42 FEET EAST OF THE INTERSECTION OF SAID NORTH LINE WITH TEX SOUTHEASTERLY LINE OF THE REDLANDS—RIVERSIDE (BARTON ROAD); i i THENCE NORTH ALONG THE WEST LINE OF SAID RAHL LAND 275 FEET TO THE POINT OF THE BEGINNING; THENCE CONTINUING NORTH 176.55 FEET TO A POINT IN THE SOUTH LINE OF THAT CERTAIN PARCEL OF LAND CONVEYED TO FRANCIS J. BENEDICT BY DEED RECORDED JULY 7, 1950, IN BOOK 2601 OFFICIAL RECORDS, PAGE 197; 1 THENCE WEST ALONG SAID SOUTH LINE 118.59 FEET TO THE SOUTHWEST CORNER THEREOF; THENCE NORTH ALONG THE WEST LINE OF SAID LAND TO A POINT INI THE SOUTHEASTERLY LINE OF THE REDLANDS—RIVERSIDE ROAD; { THENCE SOUTHWESTERLY ALONG SAID LIME 233.24 FEET TO THE NORTHEAST CORNER OF THAT CERTAIN PARCEL CONVEYED TO R. D:1 MOORE AND WIFE BY DEED RECORDED APRIL 10, 1951, IN BOOK 2745, AGE 591, OFFICIAL RECORDS; 1 THENCE SOUTH, ALONG THE EAST LIKE OF SAID LAND 316.67 FEET TO THE NORTHWEST CORNER OF THAT LAND CONVEYED TO MARGARET BENEDICT, APRIL 10, 1951, IN BOOK 2745, PAGE 593, OFFICIAL RECORDS; THENCE EAST ALONG THE NORTH LINE OF SAID LAND 317.17 FEET TO TEN TRUE POINT OF BEGINNING. EXCEPTING THERE FROM THAT PORTION OF LOTS 9 AND 26. R.W.A. GODFREY'S SUBDIVISION OF THE SOUTHWEST 1/4 OF SECTION 33, i A-1 a j 3: TOWNSHIP l ,SOUTH, RANGE 4 WEST, SAN BERNARDINO BASE AND MERIDIAN, (AS PER PLAT RECORDED IN BOOK 13 OF MAPS, PAGE 23, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE SOUTH LINE OF REDLANDS RIVERSIDE ROAD (NOW KNOWN AS BARTON ROAD) AS ESTABLISHED BY DEED FROM THE NATIONAL ORANGE,SHOW CO., TO THE COUNTY OF SAN BERNARDINO, RECORDED MAY 18, 1932, IN BOOK 735, PAGE 89, OFFICIAL RECORDS, WITH.THE WEST LINE OF A ROAD AS,ESTABLISHED BY DEED FROMIR.W.A. GODFREY ET. AL., TO San Bernardino COUNTY, RECORDED IN L� BOOK 270 OF DEED, PAGE 213, RECORDS OF SAID COUNTY THENCE SOUTHWESTERLY ALONG THE SOUTH LINE OF SAID REDLANDS RIVERSIDE ROAD TO THE NORTHWEST CORNER OF THAT CERTAIN PARCEL AS CONVEYED TO LESLIE H. HENSON AND WANDA G. HENSON.BY DEED RECORDED JUNE 6, 1958, IN BOOK 4525, PAGE 167, OFFICIAL RECORDS, RECORDS OF SAID COUNTY, SAID POINT ALSO BEING THE TRUE POINT OF BEGINNING OF THE PARCEL TO BE DESCRIBED; THENCE SOUTH 0 02 WEST 259.23 FEET(RECORDED SOUTH 0 IT WEST 259.7 FEET) ALONG THE WEST LINE OF SAID HENSON PROPERTY TO THE SOUTHWEST CORNER THEREOF; THENCE NORTH 89 26' 30' EAST (RECORDED NORTH 89. 36' 30' EAST) ALONG THE SOUTH LINE OF SAID HENSON PROPERTY AND ITS EASTERLY PROLONGATION 118.59 FEET); TO THE NORTHWEST CORNER OF THAT CERTAIN PARCEL AS CONVEYED TO WILLIAM M. RAINBOLT ET. AL., BY DEED RECORDED APRIL 12, 1962, IN BOOK-5680, PAGE 373, OFFICIAL RECORDS; THENCE SOUTH 00 02' WEST ALONG THE WESTERLY LINE OF SAID RAINBOLT PROPERTY 77; THENCE SOUTH 890 26' 300 WEST A DISTANCE OF 218.59 FEET; THENCE NORTH 00 02' EAST TO A POINT ON THE SOUTHERLY LINE OF THE HEREIN ABOVE MENTIONED REDLANDS-RIVERSIDE ROAD; THENCE NORTHERLY ALONG THE SOUTHERLY LINE OF SAID REDLANDS- RIVERSIDE ROAD TO THE TRUE POINT OF BEGINNING. SAID PROPERTY IS ALSO SHOWN IN BOOK 8 OF RECORDS, OF SURVEY PAGE 48, RECORDS OF SAID COUNTY. PARCEL 2: A-2 33 A PORTION OF LOTS 15 AND 16, R.W.A. GODFREY'S SUBDIVISION OF THE SOUTHWEST 1/4 OF SECTION 33, TOWNSHIP I SOUTH, RANGE 4 WEST, SAN BERNARDINO SASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT, RECORDED IN BOOK 13 OF MAPS', PAGE 23, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE SOUTHEASTERLY LINE OF REDLANDS-RIVERSIDE ROAD ( BARTON ROAD) AS CONVEYED TO THE: COUNTY OF SAN BERNARDINO BY DEED RECORDED MAY 18, 1932 IN BOOK 795, PAGE 89, OFFICIAL RECORDS WITH THE NORTH LINE OF PALM AVENUE; - THENCE EAST ALONG THE NORTH LINE OF PALM AVENUE, 773.25 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 00 02' EAST 459.91 FEET TO THE SOUTHEASTERLY LINE OF REDLANDS-RIVERSIDE ROAD; THENCE IN A NORTHEASTERLY DIRECTION ALONG THE SOUTHEASTERLY LINE OF REDLANDS-RIVERSIDE ROAD, 213.03 FEET; THENCE SOUTH 00 02' WEST 591.67 FEET TO THE NORTH LINE OF PALM AVENUE; THENCE WEST ALONG THE NORTH LINE OF PALM AVENUE, 166.00 FEET TO THE TRUE POINT OF BEGINNING. EXCEPTING THERE FROM THAT PORTION OF LOT 15, R.W.A. GODFREY'�S SUBDIVISION OF THE SOUTHWEST 1/4 OF SECTION 33, TOWNSHIP I SOUTH, RANGE 4 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 13 OF MAPS, PAGE 23, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE SOUTHEASTERLY LINE OF REDLANDS-RIVERSIDE ROAD (BARTON ROAD) AS CONVEYED TO THE COUNTY OF SAN BERNARD BY DEED RECORDED MAY 18, 1932, IN BOOK 795, PAGE 89, OFFICIAL RECORDS OF SAID COUNTY, WITH THE NORTHLINE OF PALM AVENUE; I THENCE EAST ALONG THE NORTH LINE OF PALM AVENUE, 773.25 FEET; THENCE NORTH 00 02' EAST, 275 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 890 27' IY EAST, 75 FEET; A-3 3z THENCE NORTH 00 02' EAST, 244.76 FEET, MORE OR LESS, TO THE SOUTHEASTERLY LINE OF BARTON ROAD; THENCE SOUTHWESTERLY ALONG THE SOUTHERLY LINE OF BARTON ROAD, 96.45 FEET; THENCE SOUTH 0' 02' WEST 184.91 FEET, MORE OR LESS TO THE POINT OF BEGINNING; ALSO EXCEPTING THERE FROM THAT PORTION OF LOT IS, R.W.A. GODFREY'S SUBDIVISION OF THE SOUTHWEST 1/4 OF SECTION 33, TOWNSHIP 1 SOUTH, RANGE 4, WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 13 OF MAPS, PAGE 23, RECORDS OF SAID COUNTY, DESCRIBED A3 FOLLOWS: BEGINNING AT A POINT ON THE NORTH LINE OF PALM AVENUE DISTANT THEREON 773.25 FEET EAST OF THE INTERSECTION OF THE NORTH LINE OF SAID PALM AVENUE AND THE SOUTHEASTERLY LINE OF,REDLANDS- RIVERSIDE ROAD (BARTON ROAD) AS CONVEYED TO THE COUNTY OF SAN BERNARDINO BY DEED RECORDED MAY 18, 1932, IN BOOK 795, PAGE 89, OFFICIAL RECORDS OF SAID COUNTY; THENCE NORTH 0' 02' LAST, 275 EAST TO THE SOUTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO ANTHONY PETTA AND ENGELINE PETTA, HUSBAND AND WIFE, AS JOINT TENANTS BY DEED RECORDED APRIL 2, 1958 IN BOOK 4,474, PAGE 231, OFFICIAL RECORDS OF SAID COUNTY; THENCE EAST ALONG THE SOUTH LINE OF SAID PETTA LAND 75 FEET TO THE SOUTHEAST CORNER THEREOF; THENCE.SOUTH 0' 02' WEST 275 FEET TO THE NORTH LINE OF PALM AVENUE; THENCE WEST ALONG THE NORTH LINE OF PALM AVENUE, 75 FEET TO THE POINT OF BEGINNING. APN: 0276-202-48-0000 0276-202-5 1-0000 A-4 35 i APPENDIX B i SCHEDULE OF LEASE PAYMENTS Lease Principal Interest Aggregate Payment Date Component Component Lease Payment i i i TOTALS: I i I I B-1 31 IRREVOCABLE REFUNDING INSTRUCTI.ONS' (1997 Refunding Certificates of Participation) These IRREVOCABLE REFUNDING .INSTRUCTIONS (these "Instructions"), are dated August 10, 2009, and are given by the CITY OF GRAND TERRACE, a municipal corporation organized and existing under the Laws of the State of California (the "City"), to U.S. BANK-NATIONAL ASSOCIATION, a national banking association organized and existing, under the laws of the United States of America, acting as trustee for the '1997 Certificates described below(the "1997 Trustee"). - BACKGROUND: 1. The City has previously caused the execution and delivery of City of Grand Terrace Refunding Certificates of Participation, Issue of 1997 in the aggregate original principal amount of$3,730,000 (the "1997 Certificates") under a Trust Agreement dated as of August 1, 1997 (the "1997 Trust Agreement"), among the City, the City of Grand Terrace Public Financing Authority (the "Authority") and U.S. Bank National Association, as successor trustee to First Trust of California, National Association, as trustee, evidencing lease payments payable by the - City under, an Lease Agreement dated as of August 1, 1997 (the "1997 Lease"), between the Authority as lessor and the City as lessee. 2. The 1997 Certificates maturing -on or after September 1, 2009 are subject to prepayment in full on any payment date upon at least 30 days' written notice to the owners of the 1997 Certificates; 3. � On June 23, 2009, the City Council of the City of Grand Terrace approved the refinancing of the 1991 Certificates pursuant to an agreement (the "2009 Agreement") with Municipal Finance Corporation(the "Corporation") to raise funds to pay the prepayment price of the 1997 Certificates. - 4. The City expects to�receive the proceeds of the 2009 Agreement on August 10, 2009, and to prepay the 1997 Certificates the following day, on September 1, 2009. 5. ; The City wishes to give these Instructions to the 1997 Trustee for the purpose of establishing an irrevocable escrow fund to be funded, invested, held and administered for the purpose of providing for the payment in full of the principal, interest and prepayment premium represented by the 1997 Certificates upon the prepayment thereof on September 1, 2009. INSTRUCTIONS: - In'order to provide for the payment and prepayment of the 1997 Certificates and to discharge the 1997 Certificates and the obligations represented thereby, the City hereby irrevocably directs the 1997 Trustee as follows: 1 37 i j I I SECTION 1. Conditional Notice of Prepayment of 1997 Certificates. The City will provide a written request to the 1997 Trustee to send a notice of prepayment to the holders of the 1997 Certificates in accordance with Section 5.12 of the 1997 Trust Agreement which istates that the redemption is conditioned on the receipt of moneys by the 1997 Trustee for the prepayment of the Certificates on or before the Prepayment Date. The City agrees to reimburse the 1997 Trustee for all out-of-pocket costs and expenses incurred by the 1997 Trustee related to or arising from the rescission or cancellation of the notice of prepayment. The City further agrees to indemnify and hold the 1997 Trustee, its officers, directors, employees and agents harmless from and against all claims, costs, expenses,flosses and liabilities of any kind whatsoever, including, without limitation, fees and expenses of legal counsel incurred by the 1997 Trustee related to or arising from the cancellation or rescission of the notice of prepayment. SECTION 2. Establishment of Escrow Fund. The 1997 Trustee is directed to establish an escrow fund (the "Escrow Fund") to be held by the 1997 Trustee in trust as an irrevocable escrow securing the payment of the 1997 Certificates_and the City's obligations with respect thereto, as hereinafter set forth. All cash and securities in the Escrow Fund are hereby irrevocably pledged as a special fund for the payment of the principal and interest represented by the 1997 Certificates in accordance with the 1997 Trust Agreement. If at any time the 1997 Trustee receives actual knowledge that the cash and securities in the Escrow Fund will not be sufficient to make any payment required by Section 3 in respect of the 1997 Certificates, the 1997 Trustee shall notify the City of such fact and the City shall immediately {cure such deficiency from any source of legally available funds. The 1997 Trustee has no liability for any such insufficiency. j SECTION 3. Deposit into Escrow Fund. On August 10, 2009 (the "Closing Date"), the City shall cause to be transferred to the 1997 Trustee for deposit into the Escrow Fund the amount of$ in immediately available funds, to be derived as follows: i (a) from amounts provided by the Corporation in the amount of$ j I (b) from amounts held in the Lease Payment Fund established and held by the 1997 Trustee under Section 6.07 of the 1997 Trust Agreement (the 1997 Lease Payment Fund") in the amount of$ which amount the 1997 Trustee is hereby directed to transfer to the Escrow Fund on the date hereof, and { (c) from amounts held in the reserve account established and held by the 1997 Trustee under Section 6.07(d) of the 1997 Trust Agreement (the "1997 Reserve Account") in the amount of$ which amount the 1997 Trustee is hereby directed to transfer to the Escrow Fund on the date hereof. i i 2 3I SECTION 4.' Investment and Application of Amounts. The 1997 Trustee shall hold the moneys deposited in the Escrow Fund in overnight in its fund identified as the First American Treasury Obligation Class D Fund., The 1997 Trustee shall apply all cash held in the Escrow Fund to pay the principal, interest represented by. the 1997 Certificates coming due and payable_upon the payment and prepayment thereof on September 1, 2009, in the following amounts: Prepaid Total V Payment Date Interest Principal Payment Following payment and prepayment in full of all of the 1997 Certificates on September 1, 2009 the 1997 Trustee shall withdraw all amounts remaining on deposit in the Escrow Fund, if any, and transfer those amounts to the City to be applied to pay the lease payments next coming due under the Lease Agreement dated as of August 10, 2009, between the City and the Corporation. SECTION 5. Transfer of Funds. The 1,997 Trustee shall make the transfers into the Escrow Fund from the 1997 Lease Payment Fund as set forth in subsections (b) and (c) of Section 2,'such transfers to be made on the Closing Date. All other amounts held by the 1997 Trustee in any of the funds and accounts established under the 1997 Trust Agreement shall be withdrawn therefrom and transferred to the City as its property free and clear of the lien of the 1997 Trust Agreement and the 1997 Lease Agreement. SECTION 6. Application of Certain Terms of 1997 Certificate Documents. All of the terms of the 1997 Trust Agreement relating to the payment and prepayment of principal, interest and prepayment premium represented by the 1997 Certificates, and the protections; immunities and limitations from liability afforded the 1997 Trustee as trustee for the 1997 Certificates, are incorporated in these Instructions as if set forth in full herein. These Instructions set forth all matters pertinent to the escrow contemplated hereunder, and no additional obligations of the 1997 Trustee shall be inferred from the terms of these Instructions or any other agreement. SECTION 7. 'Compensation to Trustee. The City shall pay the 1997 Trustee full compensation for its services under these Instructions, including out-of-pocket costs such as publication costs, prepayment expenses, legal fees and other costs and expenses relating hereto and, in addition, all fees, costs and expenses relating to the purchase, substitution or withdrawal of any securities after the date, hereof. Under no circumstances shall amounts deposited in or credited to the Escrow Fund be deemed to be available for said purposes. The 1997 Trustee has no lien upon or right of set off against the cash and securities at any time on deposit in the Escrow Fund. SECTION 8. Effect of These Instructions. As a result of the deposit.and application of funds in accordance with these Instructions, the obligations of the City tinder the 1997 Lease shall be discharged under and with the effect set forth in Section 10.4(a) of the 1997 Lease, and 3 39 the 1997 Certificates shall be discharged under and with the effect set forth in Section 5.15 of the 1997 Trust Agreement. The deposit made with the 1997 Trustee hereunder constitutes a security deposit for the payment of the 1997 Lease Payments in accordance with the provisions of Section 9.1 of the 1997 Lease. Date: August 10, 2009 CITY OF GRAND TERRACE By: Acting City Manager j I I 1 - - - 1 4 i I 41 STAFF REPORT ACTING CITY MANAGER'S OFFICE CRA ITEM ( ) COUNCIL ITEM (X) MEETING DATE: 6/23/09 SUBJECT: Temporary Fields for Grand Terrace Little League Use FUNDING REQUIRED: YES (X) NO () Background: In 2006,The City of Grand Terrace sold the two western fields of Pico Park(as noted as "A"on.the attached map)to the Colton Joint Unified School District as part of a property, assemblage of 67-acres for the new high school. As part of the deal,the City signed a Joint-Use Agreement with the District on December 19,2006 that gave the City "sole responsibility for approval and scheduling of said open space(playfields) after normal school hours of operation." Construction began on the new Grand Terrace High School in April 2009 and the fields were closed and demolished. The new fields are not expected to open until August 2011 -� and the earliest the Grand Terrace Little League(GILL)could play their season would be in 2012. Staff met with President of Little League, Ken Boardman, to plan two temporary fields directly north of former Pico fields(as noted as"B"on the attached map). The property is owned by the CRA. The League is offering to help the city with in-kind donations for professional services, field equipment, temporary lighting, etc... Staff is asking Council direction to proceed with a plan that will create two temporary playfields on City Property to be ready for the 2010 GTLL season starting in February. Funding for the project would come from a combination of community in-kind support, Developer Impact Fees Park Fund 13, and or the CRA. STAFF RECOMMENDATION: • Council to approve in concept the use of City owned land (approximately 5 acres) as noted as "B" on the attached Map. The land would be used for two temporary playfields for GTLL starting in the 2010 season. COUNCIL AGENDA ITEM NO.p 1 • Staff to work with GTLL and identify the in-kind services and field' equipment that can be donated toward the playfields development • Staff to return to Council with a formal plan, timeline, and cost to build the two temporary fields i - I _:1 Ffs i{Pf 3 { Ak!�`o4•.l s.t A iaPt'iL 0v - ;�' • VAN .F _ TREET ;:' ': �, u•s,-�- .� —�=.�. ___ s _-� . q s�wo- `ram t• ,i 7 7 , S o I, } l Is Ja Ij 01 .. �`�.`.�4i?L�'`Mr�i,�;'�?�:i�';w~,'.�.-*i1S��?..Lf,�-.�:.cc-,;.� �? h�:'rs;"%` -,n• sib i - 1 ';'•"��• �"�F-'��_.-._.�-. _a_....,Y.-,,.•-=.:}=Rz._.-:' - '.., l;a:: `f:ti _.•x.'.ti '' _L�P'%<".. . 4 �1 'i. Z TT i5Q m_- +�1..� ,,,�ry•'y'- - ;..�i,:--`_�+{- _ �`...1.,. 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A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CITY OF GRAND TERRACE PUBLIC FINANCING AUTHORITY AUTHORIZING PROCEEDINGS TO REFUND OUTSTANDING 1997 CERTIFICATES OF PARTICIPATION AND APPROVING RELATED DOCUMENTS AND-ACTIONS WHEREAS, in order to refinance obligations issued by the City of Grand Terrace (the "City") and the City of Grand Terrace Public Financing Authority (the "Authority") i have previously entered into a Lease Agreement dated as of August 1, 1997 (the 1997 Lease"); and WHEREAS, the City's lease payments under the 1997 Lease (the "1997 Lease Payments") are evidenced by City of Grand Terrace Refunding Certificates of Participation, Issue of 1997 which have been executed and delivered in the aggregate principal amount of$3,730,000 (the "1997 Certificates"); and WHEREAS, the Board of Directors wishes at this time to approve proceedings to refinance the 1997 Certificates and thereby realize interest rate savings as well as the reduction or elimination of certain other costs, and to approve related documents and actions; NOW, THEREFORE, IT IS HEREBY RESOLVED by the Board of Directors of the City of Grand Terrace Public Financing Authority as follows: Section 1. Approval of Refinancing Proceedings. The Board of Directors hereby approves the refinancing of the 1997 Certificates and the related 1997 Lease Payments. To that end, the Board of Directors hereby approves the following agreement in substantially the respective form on file with the Secretary together with any change therein or addition thereto deemed advisable by the Acting Executive Director, and the execution thereof by the Acting Executive Director shall be conclusive evidence of such approval: • Termination Agreement between the City, the Authority and U.S. Bank National Association, as trustee for the 1997 Certificates (the "1997 Trustee"), whereby the City and the Authority agree to terminate the 1997 Lease and the related Assignment Agreement. The Acting Executive Director is authorized and directed for and in the name and on behalf of the Authority to execute and the Secretary is hereby authorized and directed to attest the final,form of each of the foregoing documents. Section 2. Material Terms of Lease Agreement. The Lease Agreement shall be for a term not in excess of the original term of the 1997 Lease, the aggregate principal amount of the lease payments shall not exceed $2,300,000 and the interest components of the lease payments thereunder shall be computed at an interest rate of 4.70% per annum. PUBLIC FINANCING AUTHORITY ITEM NO. I 1 i Section 3. Official Actions. The Acting Executive Director, the Secretary and all other officers of the Authority are each authorized and directed in the name and on behalf of the Authority to make any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and 1 other documents, which they or any of them might deem necessary or appropriate in order to consummate any of the transactions contemplated by the agreements and documents approved under this Resolution. Whenever in this resolution any officer of the Authority is authorized to execute or countersign any document or take any action; such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable. Section 4. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. PASSED AND ADOPTED at a regular meeting of the Board of Directors of the City of Grand Terrace Public Financing Authority on the 23`d day of June, 2009,111by the following called vote: AYES: NOES: ABSENT: ABSTAIN: I ATTEST: Secretary, City of Grand Terrace Public Financing Authority + i PASSED AND ADOPTED at a regular meeting of the City Council of the; City of Grand Terrace on the 23`d day of June, 2009, by the following called vote: Mayor of the City of Grand Terrace Attest: City Clerk of the City of Grand Terrace i - i -- 2 I, BRENDA MESA, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No. 2009- was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 23rd day of June, 2008, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Brenda Mesa, City Clerk Approved as to form: City Attorney -- 3 3