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05/09/1996
FILE COPY 22795 Barton Road Grand Terrace A California 92313-5295 '. Civic Center (909) 824-6621 Fax (909) 783-7629 -' Fax (909)783-2600 Byron R Matteson Mayor Gene Carlstrom Mayor Pro Tempore . Herman Hilkey s Jim Smgley Dan Buchanan Council Members Thomas J Schwab City Manager May 9, 1996 CITY OF GRAND TERRACE Regular Meetings 2nd and 4th Thursday - 6:00 p.m. Council Chambers Grand Terrace Civic Center 22795 Barton Road Grand Terrace, CA 92313-5295 CITY COUNCEL CHAMBERS MAY 9, 1996 GRAND TERRACE CIVIC CENTER 6 00 P M 22795 Barton Road THE CITY OF GRAND TERRACE COMPLIES VTT.f€ THE AkVIERICANS WITH DISABIOLMES ACT OF I,9W 1F YOUREQUME SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEET G, PUASIP, CALL TBE CITY CLEWS OFFICE AT (909) 924-662I AT LEAST 48 HOURS PRIOR TO THE MEETING * Call to Order - * Invocation - Pastor Paul Reed, First Baptist Church of Grand Terrace * Pledge of Allegiance - * Roll Call - AGENDA ITEMS STAFF COUNCIL RECOMMENDATIONS ACTION CONVENE COMMUNITY REDEVELOPMENT AGENCY Approval of 04-25-96 Mmutes Approve 2 Approval of Check Register CRA050996 Approve 3 Inland Empire Economic Partnership - Marketing Program ADJOURN COMMUNITY REDEVELOPMENT AGENCY Approve - CONVENE CITY COUNCIL MEETING 1 Items to Delete 2 SPECIAL PRESENTATIONS A Proclamation - Water Awareness Month - May 1996 B. Water Awareness Contest Winners C Presentation From Iaon's Club 3 CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial They will be acted upon by the Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent Calendar for discussion. Approve A Approve Check Register No 050996 PENDING C R A APPROVAL CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY MINUTES REGULAR MEETING - APRIL 25, 1996 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 April 25, 1996, at 6 00 p m PRESENT: Byron R Matteson, Chairman Gene Carlstrom, Vice -Chairman Jim Smgley, Agency Member Dan Buchanan, Agency Member Thomas J Schwab, Executive Director John Donlevy, Assistant City Manager Brenda Stanfill, Secretary Patnzia Materassi, Community Development Director Virgil Barham, Building and Safety Director Lt Kyntsis, Shenff's Department ABSENT: Herman Hilkey, Agency Member John Harper, City Attorney Bernard Simon, Finance Director APPROVAL OF APRIL 9. 1996 CRA MINUTES CRA-96-16 MOTION BY AGENCY` .MEMBER SINGLEY, SECOND BY VICE- CHAIRMAN CARLSTROM, CARRIED 4-0-1-0 (AGENCY MEMBER HILKEY WAS ABSENT), to approve the APRIL 9, 1996 CRA Minutes APPROVAL OF CHECK REGISTER NO CRA042596 CRA-96-17 MOTION BY AGENCY MEMBER BUCHANAN, SECOND BY VICE- CHAIRMAN CARLSTROM, CARRIED 4-0-1-0 (AGENCY MEMBER HILKEY WAS ABSENT), to approve Check Register No CRA042596 Chan -man Matteson adjourned the Community Redevelopment Agency Meeting at610pm SECRETARY of the Community Redevelopment Agency of the City of Grand Terrace CHAIRMAN of the Community Redevelopment Agency of the City of Grand Terrace C R A AGENDA ITEM N0. I PENDING 0 l APPROVAL DATE MAY 9, 1996 OUTSTANDING DEMANDS AS OF. -OA ■_ I FM Fq ► • P11178 35753 35755 35758 35760 35772 35787 35789 35804 CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY FIRST TRUST CALIFORNIA ADDINGTON CONSULTING & ENGINEERING ANTIMITE PEST CONTROL VIRGIL BARHAM BERGEVIN'S CLEANING SERVICE FIRST TRUST CALIFORNIA PETTY CASH RIVERSIDE HIGHLAND WATER COMPANY YOSEMITE WATERS CHECK REGISTER NO: MAY 9. 1996 1 914* : • ► PAYMENT, 1991 SERIES A BONDS, APRIL,1996 SERVICES, 22381 VAN BUREN, APRIL 1996 PEST CONTROL, 11902 PASCAL AUTO ALLOWANCE FOR MAY, 1996 JANITORIAL SERVICES FOR APRIL, 1996 PAYMENT, 1991 SERIES A BONDS, MAY, 1996 REIMBURSE PETTY CASH CLOSING BILL AT 21816 VIVIENDA BOTTLED WATER, 4/29/96 TOTAL PAGE 1 060996 I♦_1 i iT•IiI ► `I I CERTIFY THAT, TO THE BEST OF MY KNOWLEDGE, THE AFORE LISTED CHECKS FOR PAYMENT OF THE COMMUNITY REDEVELOPMENT AGENCY LIABILITIES HAVE BEEN AUDITED BY ME AND ARE NECESSARY AND APPROPRIATE EXPENDITURES FOR THE OPERATION OF THE COMMUNITY REDEVELOPMENT AGENCY BERNARD SIMON FINANCE DIRECTOR z 24,836 04 34700 26500 13750 4000 24,836 04 4312 4216 12.00 60,558 86 CRA ITEM (XX) COUNCIL ITEM ( ) MEETING DATE MAY 9, 1996 SUBJECT INLAND EMPIRE ECONOMIC PARTNERSHIP - MARKETING PROGRAM 1 Recommendation - FUNDING REQUIRED XX NO FUNDING REQUIRED DISCUSSION In February, 1995, the Redevelopment Agency approved participation in the Inland Emp= Economic Partnership and the development of a regional marketing program for Inland Empire As developed, the lEU is a genuine partnership of the public agencies and private corporations of San Bernardino and Riverside Counties to bolster the regional economy The goals of the mitial program were very simple 1 Create awareness and generate business leads for the region, 2 Image development and awareness generation, 3 Develop marketing materials and an overall strategy for advertising the benefits of doing the business in this area, 4 Generate solid new business leads for the Inland Empire, 5 Mamtam retention and support strategies for existing businesses, The success of the program and the need to continue it are based on its results. The Inland Empire is currently the fastest growing economy in Southern California as far as jobs, commensal lease to occupancy ratio, new manufacturing businesses and business retention. A considerable number of these achievements are based on an aggressive campaign by the IEEP and the private development of the Inland Valley The benefits of participation received by the City of Grand Terrace are measured through a number of factors, including the materials received (site requests, film permitting, news chppmgs, newsletters, etc) , the regional benefits and growth achieved through the program, and the exposure generated by being a member -of � p�p strategy - The Marketing Program is developed and presented through the private marketing firm, CSP Consultants The Year Two program is attached for your information. CITY OF GRAND TERRACE COMMUNITYREDEVELOPMENTAGENCYAGENJb KNRAGEN©A MM NOJ INLAND 0444/96 EMPIRE ECONOMIC TO PARTNERSHIP FROM S,,✓,Ae- 50arcAlefues7`- MEMORANDUM TEMP Comrnumty Partners June Trndel DONA..D n ECKM am"COLU118 SUBJECT Project No 0056-96 PRE1I0ENT CEO (See attached list) MU" COW We have just received a site search request from the State Trade and seuusuSWWS Commerce Agency for a consul ot:vel.OpMEt1T $ cY twig firm representing a joint venture CENTM between two fortune 500 companies The client may locate one Northern TZ11ooMs and one Southern operation if they locate in California DtY mIt nfwD The client is searching for 25-30 acres for manufactunng a modular nLMC0 eausstora housing type product where lumber is output Building size requirement 3=1DAVIS is 75,000 sf. They want a rural location -- 50,000 - or less -in population. - - W=R The new jobs generated will be 110, increasing to 250 in year two. INLMD swim roumm COUNCIL TUNE TAt. = taE�1JTr, E DLRECIWA 3281 E Guasti Road Suite Loa Ontario CA 91751 CH (909) 390 8080 FAX 909) 390 8077 Other specifications for the project are as follows. • Access to major highways • bail served - 300 cars per year • ?allow for expansion of future adjacent facility of 50,000 sf • 2 dock doors • Water - 8" Loop- 80 lb psi - Domestic use and fire protection The company has requested industrial park map of selected sites, site survey if available, .9= plans, brief status proffie, and any incentive programs, There is an extremely short turnaround time, and your prompt attention would be appreciated Please subrmt your mfOrmation to our office by 3 00 pm, Fr day, April 26 --�� YEAR ONE ANALYSIS The challenge facing the IEEP and its marketing consultant in Year One was daunting create awareness and generate business leads for a region that was larger and more diverse than most states Add to this challenge a limited budget, a certain degree of skepticism from accomplished member cities and a small IEEP staff and you are left with a "David vs Goliath" scenario when placed beside the efforts of other regions and cities Fortunately for the region, the IEEP had assembled both an internal and external team that was up to the challenge Utilizing resources early to create a strategic plan, the IEEP and CSP were able to implement a campaign that met, and often surpassed, campaign objectives Year One focused primarily on image development and awareness generation A logo, slogan and materials now begin to shape the context from which we will communicate Inland Empire message points Important corporate partnerships (ESRI, Fender) gave us platforms from which we delivered impactful direct mad and advertising tactics Monthly news releases on important Inland Empire news began the long road of media and mass market education _ And the results of this tactical approach are beginning to show Reporters appreciate news from the Inland Empire and have begun to write about -the area more often A -- recent story in the Los Angeles Times (March 13, 1996}-supports the growing interest in the Inland Empire outside the region Advertisements are generating inquiries And finally, our direct mad/telemarketing programs have generated 33 prospects, dramatically exceeding our expectations This is Just the beginning Year Two will continue this momentum and take our success to a new level We have utilized a strategic approach to continue awareness budding and also to begin efforts toward lead generation With still limited budget and staffing, the IEMP will more than pay for itself through successful business procurement Its success will make member cities confident that continued support of the IEMP is not only worthwhile but essential The following program is based on 11 8 cents per capita expenditure GOALS A Generate solid new business leads for the Inland Empire B Continue Inland Empire awareness building tactics for targeted audiences C Maintain retention and support strategies for existing businesses w IEEP Year Two Page Three E X x International Rectifier with Miniature fluorescent light Frito-Lay or other food manufacturer with Logo packaging Maglite with branded flashlight B Increase Database Each direct mail piece would target a core group of California companies, a core group of national companies and a selected group of national companies within an appropriate industry The industry audience would change with each applicable piece The core group of 5,000 will stay the same throughout Year Two Each selected target industry will add a new national group of up to 1,000 The database by the end of year two will hold up to 8,000 companies Suggested target groups are as follows o Core Group of 6,000 --- This group will consist of 3,500 companies inside California (presidents), 1,000 national companies (new presidents) and 1,500 NACORE/IDRC members o Food Manufacturing Companies--1,000 national companies o Bio-Medical companies--1,000 national companies Year One Year Two Total Budget $44,200 $30,000 CSP Fee 6,300 8,000 Other Costs 37,900 22,000 r T IEEP Year Two Page Five A News Bureau CSP will pitch six distinct stories, one every other month, tailored to each of the IEEP's four target CA counties Follow-up will be increased to obtain a Year Two goal of four Inland Empire stones that are similar to the LA Times piece A sampling of story ideas and tactics which we will choose from are as follows o Inland Empire Relocations/Expansions -- Select high profile companies from the list of companies that have moved or expanded into the Inland Empire from these targeted counties during the past 24 months and pitch success stones o New moves -- Research and follow companies moving into the Inland Empire during the transition and quietly pitch reasons for the move to the local media (Media pitches will not be attributed to IEEP) - Develop data sheet to include company income, # of employees, contacts, date info released to press, etc o California Growth Patterns Story -- California is experiencing job growth, and the areas where this growth is happening at a phenomenal rate are the non-traditional urban areas such as the Inland Empire, Ventura and the Central Valley o Other sidebar stories including resort areas of the Inland Empire and the home to minor league baseball o Economic Development Organizations -- Research the prominent economic development groups in Southern California and pitch differences, similarities and unique characteristics In concert with story development, CSP will implement the following tactics to generate additional story ideas and placement - - - - o Editorial discussion groups -- CSP will coordinate a series of round- table discussion groups (at least two) with editors of target publications including LA Times, Register and SD Tribune - Topics will include housing, export, international trade, etc IEEP Year Two Page Seven o California on the Rebound -- fastest growth areas etc o Where to Invest -- fastest growing economies in the Western U S o High Quality of Life in the Inland Empire -- develop pitch targeting CEOs in publications like Inc, Forbes, o Inland Empire Annual Forecast -- QER D Inland Empire Soliciting stones within the Inland Empire is an important tactic working for the IEEP's retention goals It is important for the business community to read about innovative companies and positive economic trends in the region To support this effort, CSP will continue to provide stones targeting Inland Empire publications Follow-up for these publications will be limited to the top five area newspapers and all inquiries Year One Year Two Total Media Budget $2,960/mo $4,000/mo - - IV. Advertising Advertising in Year One was limited, but extremely effective Due to continued budget constraints in Year Two, it is recommended that advertising placement be conducted on a case by case basis within the following publications A Southern California Business Journal Expansion Supplements/issues such as the Orange County Business Journal, Los Angeles Business Journal and San Gabriel Valley Business Journal B World Trade World Trade has a total circulation of 62K of which 31 % of its readership are considering an expansion or relocation within the U S This is a target group (19,220 companies) we should address IEEP Year Two Page Nine VIII Program Management & Administration In the past, all program development, meeting time and client reporting activities have been included in the media relations budget The average dollar amount per month spent on program administration in Year One (based on 10 months) was $960 We are proposing a separate budget for this category in Year Two A Program Development B Meeting preparation and attendance C Client reporting activity and conference reports D Budget management Year One Year Two Total Budget - 0 - S1.,000/ma �— IX. Reimbursable Expenses X. i The reimbursable expenses budget was more than adequate for Year One - Any unforeseen expenses incurred will be covered under the IEEP Marketing Functions budget category of the TEMP Year One Year Two Total Budget $5,200 $5,200 Budget Summary Activi1y Year One* Year Two Direct Mail $ 44,200 $30,000 Telemarketing 15,600 15,000 Media Relations 29,600 48,000 Advertising 18,200 _ 9,000 Materials 18,200 _ = 9,000 =_ Program Admin ** N/A _ 12,000 Reimbursable Exp 5,200 5,200 IEEP, IETC, IEFC 124,000 140,000 Total $255,000 $268,200 Cw� _per � � " � � ^• ; �- '+' - ; '" � � � L� tom' ,`'h � - \ r -=�. Y _ WATER AWARENESS MONTH MAY 1996 WHEREAS, water is California's most precious natural resource, and ..., WHEREAS, the health and welfare of our communwes, state, and citizens depend upon — reliable water supplies, and �-c WHEREAS, to ensure an ample supply of good quality water for the populus, we must work together to effectively conserve and protect the local water resources, and _ -- - WHEREAS, by educating all citizens about the value of water and the importance of - conservation, we can help them make wise decisions regarding their personal and family water usage habits, - -- NOW, THEREFORE, 1, ' Byron R Matteson, Mayor of the City of Grand Terrace, on behalf of the City Council, hereby proclaim May 1996 as WATER AWARENESS MONTH and urge all citizens to loin me in supporting Riverside Htghkvid Water Company and other water., organizations in their effort to help our citizens to be "Water Aware " Mayor of the City of Grand Terrace _and of the City Council thereof This 9' day of May, 1996- _t COUNCIL AGENDA ITEM # �. PAGE 1 PEIwi'NG CITY CITY OF GRAND TERRACE COUNCIL APPROVAL DATE: -MAY 9, 1996 - _ _ _ _ _ _ _ _ CHECK REGISTER NO. 060996_ OUTSTANDING DEMANDS AS OF: CHECK NO, VENDOR P11165 SOUTHERN CA GAS COMPANY P11166 COMCAST CABLEVISION P11167 SOUTHERN CA GAS COMPANY P11168 COMCAST CABLEVISION P11169 SOUTHERN CA GAS COMPANY P11170 COMCAST CABLEVISION P11171 REGbNTS/UNIVERSITY OF CALIFORNIA P11172 SOUTHERN CA GAS COMPANY P11173 COM'CAST CABLEVISION P11174 PATRICA PETERSON P11175 PEAS P11176 SOUTHERN CA GAS COMPANY 0 Q P11177 COMCAST CABLEVISION C P11179 PETTY CASH n P11180 SOUTHERN CA GAS COMPANY r P11181 COMCAST CABLEVISION 0 P11182 HADIAWAY CONSTRUCTION m 35752 ACCENT PRINT & DESIGN 35753 ADDINGTON CONSULTING/ENGINEERING 35754 A4 EI kICAN BUSINESS SYSTEMS 35756 ARROW STRAIGHT 35757 AT & T 35758 VI�RGIL BARHAM 35759 BARR COMMERCIAL DOOR, INC 25760 BERGEVIN'S CLEANING SERVICE MAY 91996 01 w1l ii• CASH PAYMENTS FOR 4/17/96 17536 CASH PAYMENTS FOR 4/17/96 8213 CASH PAYMENTS FOR 4/18/96 4233 CASH PAYMENTS FOR 4/18/96 2598 CASH PAYMENTS FOR 4/22/96 10930 CASH PAYMENTS FOR 4/22/96 24585 REGISTRATION FOR CODE ENFORCEMENT SEMINAR 20500 CASH PAYMENTS FOR 4/24/96 14634 CASH PAYMENTS FOR 4/24/96 10589 BIRTHDAY BONUS 5000 RETIREMENT FOR PAYROLL ENDING 4/19/96 5,64449 CASH PAYMENTS FOR 4/29/96 32126 CASH PAYMENTS FOR 4/29/96 12159 REIMBURSE PETTY CASH, CHILD CARE 30887 CASH PAYMENTS FOR 4/30/96 16826 CASH PAYMENTS FOR 4/30/96 7947 RREMOVE/REPLACE SIDEWALKS, NAPA COURT 2,200 00 PRINT FLYERS FOR CHILD CARE 18125 SERVICES FOR APRIL, 1996 1,603 00 6�PPLIES FOR MAILING MACHINE 3788 P OGRESS PAYMENT FOR STREET STRIPING 9,35289 F kONES FOR CITY OWNED FACILITIES 4818 AUTO ALLOWANCE FOR MAY, 1996 11250 REPAIR DOOR AT PICO PARK CONCESSION STAND 50615 JANITORIAL SERVICES, BUILDING & SAFETY 1I 4000 PAGE 3 DATE. MAY 9, 1996 OUTSTANDING DEMANDS AS OF: m; I =101 11 ►• ►10; CITY OF GRAND TERRACE MAY 9. 1996 CHECK REGISTER NO. 35788 POSTMASTER-COLTON POSTAGE FOR METER 35790 SAN BERNARDINO MEDICAL CLINIC PRE -EMPLOYMENT PHYSICALS 35791 COUNTY OF SAN BERNARDINO WEED ABATEMENT FOR 1995 35792 COUNTY OF SAN BERNARDINO FUEL FOR CHILD CARE VAN/CITY EQUIPMENT 35793 COUNTY OF SAN BERNARDINO RELEASE LIENS, WASTEWATER DISPOSAL SERVICES 35794 COUNTY OF SAN BERNARDINO LAW ENFORCEMENT/CRIME PREVENTION OFFICER FOR MAY, 1996 OVERTIME/CELLULAR PHONE, JAN-MARCH, 1996 35795 THOMAS SCHWAB AUTO ALLOWANCE FOR MAY, 1996 35796 SOUTHERN CA GAS COMPANY NATURAL GAS -CITY VAN 35797 STAPLES PAPER FOLDER, CRIME PREVENTION 35798 SYSCO FOOD FOR CHILD CARE 35799 TEXACO REFINING/MARKETING FUEL FOR CITY TRUCKS/EQUIPMENT 35800 TOYS R US PROGRAM SUPPLIES FOR CHILD CARE 35801 TRI-COUNTY OFFICIALS UMPIRES FOR SLO-PITCH SOFTBALL, 4/1-4/15/96 35802 UNDERGROUND SERVICE ALERT DIG ALERT NOTIFICATION FOR MARCH, 1996 35803 JEANNINE VASQUEZ MONITOR FOR RECREATION PROGRAMS/CLASSES 35804 YOSEMITE WATERS BOTTLED WATER FOR CITY OWNED FACILITIES PAYROLL FOR APRIL, 1996 1 TOTAL I CERTIFY THAT, TO THE BEST OF MY KNOWLEDGE, THE AFORE LISTED CHECKS FOR PAYMENT OF THE CITY LIABILITIES HAVE BEEN AUDITED BY ME AND ARE NECESSARY AND APPROPRIATE EXPENDITURES FOR THE OPERATION OF THE CITY BERNARD SIMON, FINANCE DIRECTOR 050996 2,00000 6000 4,00000 21334 23400 88,122 41 20000 2010 53874 82625 25041 32271 3000 5375 15900 29792 117,488.68 242.005 35 PENDING CITY COUNCIL APPROVAL CITY OF GRAND TERRACE CITY COUNCIL MINUTES REGULAR COUNCIL MEETING - APRIL 25. 1996 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 April 25, 1996 at 6 00 p m t PRESENT: Byron R Matteson, Mayor Gene Carlstrom, Mayor Pro Tem Herman Hilkey, Councilmember Jim Singley, Councilmember Dan Buchanan, Councilmember Thomas J Schwab, City Manager John Donlevy, Assistant City Manager Brenda Stanfill, City Clerk Patrma Materassi, Community Development Director Virgil Barham, Building and Safety Director Lt. Kyntsis, Sheriff's Department ABSENT: John Harper, City Attorney Bernard Simon, Finance Director The meeting was opened with invocation by Pastor Salim Elias, Azure Hills Seventh-Day Adventist Church of Grand Terrace, followed by the Pledge of Allegiance led by Councilman Jun Smgley Mayor Matteson convened City Council meeting at 6 00 P M Mayor Matteson reconvened City Council meeting at 6 10 P M SPECIAL PRESENTATIONS 2A. Recycling Family of the Month - March 1996 Mayor Matteson announced that Mr and Mrs Eugene Martinez and family are the recipients of the recycling family of the month award for the month of March 1996 and presented them with local merchant gift certificates from Demetn's Restaurant, K's Beauty Supply, La Pasta Itaha,- and Grand Terrace Cleaners and -- Tuxedo Rental 2B Proclamation - Soil and Water Stewardship Week - April 28 - May 5, 1996 COUNCIL AGENDA ITEM #JD Council Minutes 04/25/96 Page 3 expressed Ins sorrow Councilmember Hilkey, reported that he attended the Southern California Association of Governments meeting He stated that the State Auditor Controller spoke at that meeting and stated that there are three departments within the State that have never been audited and is currently working on having them audited to see how there can be some savings within the State The main discussion of the association was about state homes for physically, mentally challenged, delinquent or misbehaving children and adults that are set up by the State, which cities have no control over The local governments want to have some type of control on how they are set up and run The association stated that they support legislation that allows cities to have some regulation of these homes as long as it doesn't violate Federal Laws Councilmember Buchanan, stated that recently he attended, along with Assistant City Manager Donlevy, the Colton Utility Commission meeting and met with Les Evans the Interim Director He reported that they are still going over various issues, proposals, and concepts on how to simplify some of the problems that wastewater issues have raised to find some way to equitably allocate the cost for treating Grand Terrace's wastewater as well as Colton's wastewater and improve and maintain the facility so that it can continue to operate without violating the clean water rules and regulations Mayor Matteson, questioned if he was going to get involved in the guidelines of the operations Councilmember Buchanan, stated that they are exploring different ideas on how to best restate, modify, or interpret the contractual relationship between the two cities The passage of time has rendered parts of the agreements out dated, both sides want to approach this cautiously Both communities recognize the need of getting the Title 22 repairs done and getting a sufficient cash flow for that facility so that they can pay for the repairs that are necessary to keep the water quality control board satisfied and so the waste is properly treated and disposed of so not to create an environmental problem There is no final resolution at tins point, the City of Colton has not yet addressed the rate issue, however, it should go before their City Council in about a month or so In the meantime Assistant City Manager Donlevy is continually working close with Les Evans on the various issues that have been raised He stated that Assistant City Manager Donlevy should have a progress report on the various issues at the next City Council meeting Mayor Matteson, questioned the accountability of the missing funds Councilmember Buchanan, stated that Colton has taken the position that there are no missing funds They acknowledge that they have not provided the annual audits that the agreement requires and that their internal audits have come to the conclusion that all of a Council Minutes 04/25/% Page 5 Proactive Versus Reactive Code Enforcement 8B Report on Schedule of Planning Commission Meetings CC-96-39 MOTION BY MAYOR MATTESON, SECOND BY COUNCILMEMBER r H11 , CARRIED 4-1-M (COUNCELMEMBER BUCHANAN VOTED NO), to have the Planning Commission schedule two meetings a month ORDER OF ADJOURNMENT Mayor Matteson adjourned the City Council Meeting at 6 52 p m , until the next Regular CRA/City Council Meeting which is scheduled to be held on Thursday, May 9, 1996 CITY CLERK of the City of Grand Terrace MAYOR of the City of Grand Terrace RESOLUTION NO.96 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE SUPPORTING LEGISLATION REQUIRING INSURANCE COMPANIES TO OFFER A REDUCTION IN AUTOMOBILE INSURANCE RATES FOR LICENSED DRIVERS OF ALL AGES WHO SUCCESSFULLY COMPLETE AN APPROVED DEFENSIVE DRIVING COURSE. L-- Whereas, qunes resulting from motor vehicle collisions are in the top five causes of death for the American population, and Whereas, nationwide, in 1994, over 43,000 persons were killed and over 3 2 million mjured in motor vehicle collisions nationwide, and Whereas, during 1994 in California over 4,200 persons were lulled and over 316,000 were injured in motor vehicle collisions, and Whereas, the total economic cost of motor vehicle collisions in 1994, estimated for reported and unreported motor vehicle collisions, was $176 5 billion, and Whereas, American taxpayers pay an estimated $3 7 billion to cover lifetime health care J costs resulting from motor vehicle collision injuries - $2 6 billion at the federal level and $1 1 billion at the state level, and Whereas, the estimated cost for a single motor vehicle fatality, based on the overall economic costs to society, is approxunately $2 2 million, and - Whereas, the recent increase m statewide speed limits will likely increase the number and seventy of automobile accidents, and Whereas, defensive driving courses have been statistically proven to reduce the frequency and seventy of accidents upon successful completion in drivers of all ages, and Whereas, 34 states in the U S have legislation mandating auto insurance rate reductions for approved defensive driving courses, rune states include discounts to all ages including New York, Georgia, Texas, and Kansas, and Whereas, a reduction in insurance rates would provide a financial incentive for Persons to enroll in a defensive driving course, _ ,n Y - - ---- -- - - - - - - - -- Now, THEREFORE IT BE RESOLVED that the City Council of the City of Grand Terrace does hereby urge the California Legislature to enact legislation to modify the existing state vehicle code requiring insurance companies to reduce auto insurance rates for licensed drivers of all ages who successfully complete an approved defensive driving course COUNCIL AGENDA REM #3E HISTORICAL & CULTURAL ACTIVITIES COMMITTEE MINUTES FOR APRIL 1996 The April 1, 1996 meeting was called to order by Chairman Vi Gratson at 7 PM. Those present were Vi, Ann Petta, Judy McBride, Colleen Edmundson, Hannah Laister, Pauline Grant and Karen Gerber The Secretary's minutes were read. Discussion was made on allowing the Friends of the Library to use the lobby showcases. The Committee feels that the display for Seth Armstead _ should be shown for at least two months. Librarian Laurie Shearer was invited to the meeting. The Committee suggested that she use the showcase in the inner lobby to advertise the Rare Book Auction. It could be moved to wherever she thought would be best. Ann offered this motion, seconded by Colleen, all in favor. After this discussion, Judy made a motion to accept the minutes, seconded by Colleen, all in favor.. Vi reported a balance of $1217.00 in the treasury. A form to be filled out was received from the City, requesting, among other items, that we_elect. a Vice-Chaiiman. Hannah made a motion to elect Judy to this post, seconded by Vi, all in favor. Vi will. complete this form and return to the City. The Secretary completed the necessary form to renevr the tenures of Pauline, Ana and Colleen. Applications for the Art Show were not in time to go out in the sewer bills. Ann mailed 39 to former participants and others are bei ng placed around town. Some returns have come in and were turned over to Ann. The lock on the front lobby showcase will have to repWfed. Tapes: Another tape has been completed. Copies will be made to put in each book. Colleen and Judy each have a book and one is in the storage room. It will be necessary to find out where the other is. Punch and cookies will be served at the Art Show. Everyone will bring something. Pictures will be hung on Saturday from 7-9 PM. Colleen was appointed to take inventory of our supplies which are in the store room. New Business: Karen said that she had a call concerning the Japanese Internment Camp in Grand Terrace. Ann will check into this bit of history. Irene Mason's term will end on June 30th. Her position on the Committee will be open at that time. The neat meeting will be May 6th. Ad3ourned at 8 PM. Respectfully *fitted, COUNCIL AGENDA ITEM #541a CITY COUNCIL ITEM 6A AN ORDINANCE OF THE CITY COUNCIL AMENDING TITLE 4 OF THE MUNICIPAL CODE AND ESTABLISHING A COMPREHENSIVE SCHEDULE FOR FEES, TAXES, AND FINES FOR PERMITS, LICENSES, SERVICES, FACILITIES, AND ACTIVITIES PROVIDED BY THE CITY OF GRAND TERRACE WILL BE PROVIDED TO YOU PRIOR TO THE CRA/CITY COUNCIL MEETING. COUNCIL AGENDA ITEM # &A CRA ITEM () COUNCIL ITEM (XX) MEETING DATE May 9, 1996 SUBJECT COLTON WATEWATER PLANTISEWER RATE UPDATE Recommendation NO FUNDING REQUIRED XX BACKGROUND/HISTORY Through an agreement with the City of Colton, the City of Grand Terrace has purchased the right to deliver and have processed, 16 MGD of sewage at the Colton Wastewater Treatment Plant. The agreement was entered into in 1974 by the county service area and was assumed by the City upon incorporation The agreement has since been amended three (3) tunes since Over the past year, the City has been dealing with a number of issues related to a Cease and Desist Order issued to the Colton Wastewater Treatment Plant by the Regional Water Quality Control Board (RWQCB) This order was based on the following factors 1 Maintenance of the plant and facilities 2 Reliable hydraulic capacity for the safe processing of sewage 3 Staffmg problems 4 Lack of a plan or program to upgrade the facilities to meet standards as set by the Board and government water quality regulations _ - - - -- - -- - - - In May, 1996, the Board issued the Order which placed a moratorium on new sewer services in either Grand - Terrace or Colton The Order also establish a timeline for compliance which would have begun a penalty of up to $10,000 per day Since the Order, the issue has gone from Colton proposing a $28 per month rate to both cities negotiating issues in order to resolve the numerous problems which have arisen in developing a plan to avert financial penalties to the operation DISCUSSION Over the past year, staff has been in a continual negotiation with Colton regarding the disposition of how they were dealing with the Order, preparing the necessary reports to meet the needs of the RWQCB, how the repairs and upgrades would be financed and now, the rate structure which will be charged to the customer Our efforts have been relatively successful in representing the interests of Grand Terrace residents, however a number of issues remain unsettled The following will provide the City Council with -an update of the status -of the key issues and an overview of how staff recommends proceeding with the negotiation CITY OF GRAND TERRACE CITY COUNCIL AGENDA REPORT COUNCIL AGENDA ITEM # 7A Colton Wastewater/Rate Update Agenda Report 5-9-96 Based on these instructions, this financial report was revised and presented to the Colton Utilities Commission in March, 1996 As proposed, the Financial Plan and Rate Study projects service charges as follows Effective Date Colton Grand Terrace Present Rate 7/93 $12 50 $11 25 Proposed Rate 7/96 $16 20 $12 58 Projected Rate 7/98 $17 53 $14 43 Projected Rate 1 7/00 1 $22 58 1 $14 43 The Utilities Commission received the report and has forwarded a recommendation that the City Council adopt the first Proposed Rates for July, 1996 In establishing the projected rates, Colton has taken very conservative assumptions in estimating financing, debt service and personnel costs Potentially, the projected rates will be lower based on the final debt financing costs which will be established in the near future As presented, the rates for Grand Terrace represent the "wholesale rate" to process the sewage The rate does not include the City business and operational costs, nor does it include the maintenance costs for our collection system The estimated Residential Sewer Rates based on a full cost allocation for each agency is estimated at $16.20 for Colton and $15 75 for Grand Terrace A comparison breakdown of charges are as follows Cost Factor Grand Terrace Colton Customer Service/Adman $ 176 026 Maintenance/Operations $ 481 515 Rix Debt Service $ 099 076 San Debt Service $ 0 094 Repairs/Improvements Debt Service $ 687 529 ---- -- - --- ----- - Expansion Debt Service $ 0 257 Collection System Repairs/Mamt $ 1 32 - - 1 23- Total Cost $ 1575 1620 As can be seen in the comparison, the allocation of costs are very similar, with the key cost differential being the SARI Line and the expansion debt service At this time, staff is recommending that the City Council adopt the proposed rate increase to $15 75 This recommendation is based on the following The proposed rate is based on verifiable costs and is important in proceeding with some very important improvements Adoption of this first step will most likely see the final elimination of the Cease and Desist Order The cost allocation percentages included in the financial plan and used to establish this rate reflect assumptions which are agreeable to the Ciry staff While there are outstanding issues (to be discussed in the next section), the initial rate adjustment has been developed from hard cost projections It is important to note that the current rates charged in both Colton and Grand Terrace have been subsidized by each City's fund reserves Grand Terrace has subsidized the total cost of operations at a rate of approximately CITY OF GRAND TERRACE CITY COUNCIL AGENDA REPORT 3 AGENDA REPORT For the Council Meeting of May 7, 1996 TO HONORABLE MAYOR AND COUNCIL MEMBERS APPROVAL NABAR ENRIQUE MARTINEZ, CITY MANAGER FROM LES EVANS, INTERIM WATER & WASTEWATER DIRECTOR SUBJECT WASTEWATER FINANCIAL PLAN AND RATE STUDY DATE APRIL 17, 1996 BACKGROUND On April 7, 1995, the Regional Water Quality Control Board (RWQCB) adopted Cease and Desist Order No 95-36 (CDO-95-36) requiring the City to stop issuing connections to the sewer system, to prepare a report of deficiencies at the Wastewater Treatment Plant (Title 22 Report) and to develop plans and schedules for malung repairs and improvements identified in the Title 22 Report On August 15, 1995, the City completed the Title 22 Report and submitted it to the RWQCB On August 8, 1995, the City Council adopted Plans and Schedules for Compliance with CDO No 95-36 The Compliance Schedule includes the adoption of new sewer service charges by July 1, 1996 The City Council's adopted Plan and Schedules for Compliance with CDO No 95-36 includes a commitment to design and construct repairs and improvements to the Wastewater Treatment Plant and to implement a financial plan to fund the improvements On January 16, 1996, the City Council authorized staff to proceed with the design of -two additional oxidation ditches and two additional secondary clarifiers to expand the hydraulic capacity of the treatment plant and to design other improvements to address deficiencies noted in the Title 22 Report The cost of these additions and improvements is estimated at about $7 5 million, including design costs In addition to the need for capital improvements at the Wastewater Treatment Plant, the City's wastewater collection system is also in need of major repair and replacements A November, 1994 study of the collection system recommended a program of sewer line rehabilitation of over $400,000 a year for four years The present monthly sewer service charges (Wastewater Rates) which went into effect on July 1, 1993 are insufficient to fund any significant improvements to the Wastewater Treatment Plant's facilities or rehabilitation of old sewer mains The proposed rate increase program, which will generate enough funds to meet cash flow requirements of_ -^- the necessary system capital outlay program and provide operations and maintenance _ funds, requires an immediate rate increase of about 30%,-with a second increase of about 8% in two years, and a third increase of about 27% in the year 2000 1 a Mayor and Council Members May 7, 1996 Notes 1 The City of Colton generates approximately 81 % of the flow to the sewage treatment plant, while the City of Grand Terrace generates the remaining 19% Presently these flow rates are estimated, however, the installation of flow meters at Grand Terrace's mains connecting to the sewage treatment plant are proposed for the near future Although the cost to treat one gallon of sewage is the same whether the customer lives in Colton or Grand Terrace, the average customer in Grand Terrace discharges less flow than the average Colton customer The reason for the higher average flow per customer in Colton is due to a few industrial dischargers such as Angelica Laundry Service, which discharges 500,000 gallons per day versus a normal residential discharge of about 150-200 gallons per day This difference in flows from the "average" customer results in a $5 15 monthly fee for a Colton customer and $4 72 monthly fee for a Grand Terrace customer 2 The City of Grand Terrace provides its own customer billing and absorbs any uncollectible accounts, they also maintain their own collection system Colton provides customer service and billing only for City of Colton sewer customer, and maintains only its own collection system 3 The City of Grand Terrace owns 16 mgd capacity in the sewage treatment plant (and the RIX facility) Grand Terrace discharges about 900,000 gallons/day of sewage to the sewage treatment plant, which is about 56% of their capacity Colton, on the other hand, discharges about 4 3 mgd each day which is over 90% of its capacity Since the "average" customer in Grand Terrace is paying for a relatively larger amount of unused capacity, this component of the monthly service charge is $0 99 compared to Colton's component of only $0 76 per month The same principal applies to the proposed Debt Service for repairs and improvements to the sewage treatment plant Grand Terrace users are paying for 44% of unused capacity, while Colton users are paying for only 10% of unused capacity Therefore, the Grand Terrace user pays a higher rate ($6 87) for the proposed new Debt Service, than the Colton user ($5 29) 3 c_) WASTEWATER FINANCIAL PLAN AND RATE STUDY Prepared by City of Colton Electric Utility Department City of Colton Water and Wastewater Department Kennedy/Jenks Consultants February, 1996 Revised April, 1996 5 The City's present wastewater rate structure consists of a fixed residential charge and variable non-residential charge based on metered water consumption The current fixed charge is based on the number of Equivalent Residential Units (ERUs) assigned to each account, with all single family and multi -family dwelling units assessed one ERU at the existing monthly rate of $12 50 per ERU Non-residential accounts are charged $0 59 per hundred cubic feet (ccf) of water consumption Recently the City amended the charge to multi -family accounts which have common area facilities and landscape irrigation on the same water meter to a rate of $0 39 ccf of water consumption Schools are charged at a fixed rate of one ERU per 100 students Table 1 provides a description of current sewer service charges 7 Y 1 r The State Water Resources Control Board (SWRCB) has issued guidelines for the establishment of fair and equitable wastewater rate structures Based on the City's wastewater rate ordinance and resolution, it is not possible to establish the relationship implicit in the existing rate structure for sewage flows and strengths among the City's user classes For example, an average retail business typically discharges sewage that is one- third the strength of restaurants and places a proportionally smaller burden on the wastewater system However, all commercial and industrial dischargers pay a uniform rate based on water consumption As the costs increase for treating wastewater strengths, the inequity of this apparent discrepancy also will increase A summary of sewer rates and rate designs for other area agencies is shown in Table 2 City staff is not recommending a reduction in multi -family household sewer user charges at this time, nor are they suggesting converting other rates to reflect relative strengths of sewage However, if the Commission desires, these rate altematives can be developed 9 AGENCY Western Mun Water District Lake Hills (7/20/94) RESIDENTIAL Single Family $20 00/mo Multi -Family or MHP $14 00/mo COMMERCIAL Other Areas Single Family $17 70/mo Multi -Family or MHP $12 39/mo City of San Bernardino Single Family $14 60/unit mo $1 25/hcf (10/18/95) Mulb-Family or MHP OFFICES/MOTELS $1 10/hcf AUTO REPAIR/ CAR WASH $1 35/hcf RESTAURANTS/HOTELS W/RESTAURANTS $1 85/hcf LAUNDROMATS - - $1 05/hcf - - - HOSPITALS CONVALESCENT HOME $ 95/hcf SCHOOLS $ 65/hcf INDUSTRY $264 21/1,000 Ibs BOD $324 26/1,000 Ibs SS 11 9' , I Table 3 (see page 13-A) is a five-year plan for financing the operations and maintenance of the wastewater treatment plant as well as funding approximately $3 9 million in repairs and improvements, $1 6 million in hydraulic capacity upgrades and $2 0 million in plant expansion The financial projection spreadsheet is divided into four categories expenses, debt service, capital improvements and revenue EXPENSES Staff has projected Personnel costs, Operations & Maintenance costs, Depreciation and vanous administrative and overhead costs through Fiscal Year 2000-1 FY 1996-97 personnel costs assume that all authorized positions are filled, step increases are granted in accordance with current City policy, there are no furloughs, and includes annual cost of living increases average 3% If any of these assumptions prove invalid, the cost of personnel should be adjusted accordingly The significant difference in personnel costs in FY 1995-96 compared to FY 1996-97 is due to an average of four authorized positions unfilled during most of the year and the City's furlough program during the current fiscal year Operation and maintenance expenses include the routine costs of energy, materials, parts, supplies and contract services necessary to keep the plant and sewage collection service in operation on a day to day basis The projection assumes an _increase of 5% annually in cost of operation Depreciation is an estimate of the annual cost of using an asset Wear and tear, obsolescence, corrosion and action of the elements are why depreciation is recorded -as a cost of utility operations The City uses the=straight-line method of depreciating its assets Depreciation should be a source of internal cash used to finance normal system replacements The cost projection does not reflect the utilization of any depreciation funds for capital improvements As new construction occurs, the depreciation expense will increase reflecting the increased value of the facilities Customer service cost for the wastewater program is $51,675 for FY95-96 Customer service includes the proportionate share of billing and collection costs for the sewer enterprise Other utilities such as water and electrical pay the major share of customer service costs for the combined billing system The Administrative Allocation for the wastewater program for FY 1995-96 is $208,201 These costs include all direct support services provided by other City Departments, including vehicle and equipment maintenance, building maintenance, information systems, purchasing, payroll, etc 13 The City charges the Wastewater Enterprise fund the following fees 2% of the previous year's operating revenues (franchise fee), 1 % of the total assets (in -lieu fee), 10% of the current year's operating budget (administrative fee), and 17% of the Finance's customer service budget, all of which is transferred to the General Fund to support direct and indirect services The "In Lieu" tax is on the value of Wastewater facilities which, because they are publicly owned, are tax free DEBT SERVICE The City is presently committed to pay the debt service on the RIX project, as well as RIX Demonstration project, and the SARI line debt - The 1971 Sewer Bond will be retired in FY 1996-97 New debt service of $1,000,000 annually will be required beginning in 1998-99 to repay a new bond issue of approximately $9 42 million (25 years @ 8% with 2 years capitalized interest) CAPITAL IMPROVEMENTS The cost of the Title 22 repairs are estimated at about $3 9 million for repairing and upgrading existing treatment plant facilities The cost for increasing the reliable hydraulic capacity of the treatment plant will be about $1 6 million The cost of these facility improvements plus the cost of design is about $4,658,700 which is proposed to be shared on a 75/25% basis between the City of Colton and the City of Grand Terrace These improvements will benefit only the existing plant facilities and will not create any new capacity The City of Colton is proposing expanding the treatment plant capacity by approximately 2 million gallon per day (mgd) at a cost of about $2,051,300, including design costs These costs will be bome fully by Colton In addition, the proposed $480,000 annual program for rehabilitation of sewer mains will be borne fully by Colton REVENUE Revenue projections are based on current service charges and rate increases of about $3 70 in 1996, $1 33 in 1998-99 and $4 75 in 2000-1 The costs of the expansion of the existing plant beyond the required 1 3 mgd of reliable hydraulic capacity could be funded from new connection fees, if they are available Bond financing is based on a recent revenue bond issued by the City's Electrical Utility If low interest (or zero interest) State Revolving Funds are available, rates could be lower DEBT SERVICE COVERAGE The debt service coverage ratio is calculated by dividing net operating revenues (revenues less expenses before transfers) by the annual debt service (principal and interest) This analysis assumes a minimum debt service coverage of 125 times In other words, debt service is covered 125 times This ratio is assurance to investors that sufficient revenues will be available after normal operating and administrative expenses are met This factor could be higher or lower depending on the investors perception of the enterprise funds ability to produce sufficient, constant, and reliable revenues 14 GRAND TERRACE The City of Colton Wastewater Treatment Plant provides sewage treatment to approximately 11,000 residential units in the City Colton and 4,170 in the City of Grand Terrace In addition, there are about 600 commercialAndustnal wastewater accounts in Colton and less than 100 in Grand Terrace Of the 5,000,000 gallons of raw sewage treated at the Wastewater Treatment Plant each day about 81 % originates in Colton and 19% in Grand Terrace The actual flow from Grand Terrace is not metered, so relative flow volumes are estimated Our agreements with Grand Terrace are not precise in defining their capacity rights in our treatment facility However, based on Exhibit "C" of the 1980 Settlement Agreement, staff believes their 16 mgd entitlement to plant capacity refers simply to "average daily flow" rather than some formula for flow that would give them a right to 16 mgd of the plants "reliable hydraulic capacity" Rather than calculate the different rate scenarios, this preliminary plan has assumed that Colton pays for all plant expansion costs and Colton and Grand Terrace share 75/25% on everything else Rather than calculate the different rate scenarios, for the purpose of this preliminary plan, staff has assumed that Colton pays for all plant expansion costs and Colton and Grand Terrace share 75-25 on everything else Proposed monthly sewer service charges to be paid to Colton by Grand Terrace Present Rate $11 25 Proposed Rate 7/96 $12 58 Projected Rate 7/98 $14 53 Projected Rate 7/00 $14 53 16 APPENDIX A 1 Resolution No R-34-93 2 Ordinance No 0-7-89 3 Resolution No 5-52-89 4 Scope of Work for Wastewater Treatment Plant Improvements (Krieger and Stewart) r 5 Proposed Improvements to the Sewage Collection System (Kennedy - Jenks) Urf