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05/13/2014t CITY OF GRAND TERRACE h AGENDA &` STAFF REPORTS FOR THE REGULAR MEETING OF THE CITY COUNCIL AND THE CITY COUNCIL AS THE SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY & THE GRAND TERRACE HOUSING AUTHORITY TUESDAY, May 13, 2014 _ 6 00 P.M. Regular Meeting COUNCIL CHAMBERS, GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 Walt Stanckiewitz, Mayor Darcy MCNaboe, Councilmember Jackie Mitchell, Councllmember Sylvia Robles, Councllmember � 4 Kenneth J Henderson, Interim City Manager, Richard L Adams, City Attorney Cynthia A Fortune, Finance Director Sandra Molina, Interim Community Development Director Debora Thomsen, Interim City Clerk The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6 00 pm o CITY OF GRAND TERRACE q A ' CITY COUNCIL - AGENDA • MAY 13, 2014 Council Chambers Regular Meeting 6 00 PM Grand Terrace Civic Center • 22795 Barton Road The City of Grand Terrace complies with the Americans with Disabilities Act of 1990 If you require special 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 Convene City Council and City Council as the Successor Agency to the Community Redevelopment Agency a Invocation Pledge of Allegiance Roll Call Attendee Name Present I Absent Late ' Arrived Mayor Walt Stanckiewitz ❑ ❑ ❑ Council Member Darcy McNaboe ❑ ❑ ❑ Council Member Jackie Mitchell ❑ ❑ ❑ Council Member Sylvia Robles ❑ ❑ ❑ 1 ITEMS TO DELETE 0 2 SPECIAL PRESENTATIONS A Presentation of Operating Budget Meritorious Award from the California Society of Municipal Finance Officers for the City's Fiscal Year 2013 - 2014 Budget B Presentation of Certificate of Achievement to the City of Grand Terrace C Recognition of former City Employee and Community Leader City of Grand Terrace Page 1 Agenda Grand Terrace City Council May 13, 2014 t ; 9 CLOSED SESSION A CONFERENCE WITH REAL PROPERTY NEGOTIATORS, pursuant to Section 54956 8 of the Government Code Property Grand Terrace Senior Citizens / Community Services Center located at 22140 Barton Road, Grand Terrace, Ca 92324 Agency negotiator Kenneth J Henderson, Interim City Manager Negotiating parties Grand Terrace Lions Club Under negotiation Terms of Lease Payment ADJOURN Adjournment of this meeting is in honor of Elizabeth Durarte, a valuable employee of the City of Grand Terrace The Next Regular City Council Meeting will be held on Tuesday, May 27, 2014 at 6 00 PM 10 STAFF REPORTS Agenda item requests must be submitted in writing to the City Clerk's office no later than 14 calendar days preceding the meeting City of Grand Terrace Page 3 , 3 B CITY OF GRAND TERRACE P TE c CITY COUNCIL ._ MINUTES • APRIL 22, 2014 Council Chambers Regular Meeting 6 00 PM Grand Terrace Civic Center • 22795 Barton Road CALL TO ORDER Convene City Council and City Council as the Successor Agency to the Community Redevelopment Agency Innovacation Pledge of Allegiance Attendee Name Title Status Arrived Walt Stanckiewitz ayor _ _ Present Darcy McNaboe Council Member Present I Jackie Mitchell Council Member _ _ _ Present _ Sylvia Robles Council Member Absent Kenneth J HendersonIntenm _ City Manager Present Richard Adams City Attorney Present Debora Thomsen City Clerk Present Steve Elam Project Manager, Finance Department Present Sandra Molina ,, Interim Community Development Director Present Wong �;' Interim Assistant City Manager Present Cynthia Fortune Finance Director Present Donny Mahoney Mike Weis San Bernardino Co Sheriff Department San Bernardino Co Fire DepartmentMPresent Present i111111=1J,&aIt0l»490 City Manager Henderson noted Public Hearing Item 6 would be moved to a later date, due to the cost proposal received being significantly higher than the staff estimate He noted the subject would be brought back to the Council once a Request for Bids was completed Mayor Walt Stanckiewitz stated Items 5 B, 8 C, D & E would be continued to the next meeting, scheduled May 13th, 2014, when all of the Council could be present The Mayor then noted Closed Session Item No 9 would be moved to a future meeting (date uncertain) due to lack of a quorum 2 SPECIAL PRESENTATIONS Item B Volunteer Appreciation, Representatives from the Planning Commission were not available, therefore, their certificate will be presented at the scheduled meeting on May 13, 2014 A Grand Terrace Woman's Club - Certificate of Appreciation The Woman's Club was honored for the 106 years of service to the community In addition, a representative from San Bernardino County Board of Supervisor's Ramos' office was in attendance and also honored the Woman's Club City of Grand Terrace Page 1 Packet Pg 4y 3B Minutes Grand Terrace City Council Apnl 22, 2014 T 4 PUBLIC COMMENT Jeffrey McConnell spoke regarding the Gage Canal, and the lack of use of electric vehicles locally Pastor Andy McRae stated his appreciation for the City's recognition regarding the hard work of volunteers He further noted how important everyone's health is, and thanked the city for its involvement in the Healthy City application process He noted the County approved the Foundation for Grand Terrace's application for its Health and Fitness Program and has been awarded $25,000 for this purpose June 7th has been designated as a Health and Fitness activities day Special Presentations Continued San Bernardino County Sheriff Lieutenant Donny Mahoney provided a presentation to the Council which encompassed all of the criminal statistics of 2013 Lieutenant Mahoney answered questions of Council during his presentation ` ca 5 COUNCIL REPORTS A Council Member Jackie Mitchell v Council Member Mitchell stated she attended a school play for young children and thanked everyone for their participation In addition, she thanked the City's many volunteers for the time and effort they provide o to help fill the gap of duties which were once provided by others She noted the Council attended a V Strategic Planning and Vision workshop and commended City staff for their hard work Council Member 2 Mitchell noted the City was currently in a positive trend, and gave as an example the increase of Grand n. Terrace's home values CD 0 B Council Member Sylvia Robles Absent C Council Member Darcy McNaboe Council Member McNaboe updated residents regarding the Strategic and Vision meeting held on. April 11, o 2014 She noted the SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) was d discussed related to the City's goals and priorities She remarked about the positive aspects of the many programs available and commended how many residents were involved in the community and supported the school system d 0 D Mayor Walt Stanckiewitz M a Mayor Stanchkiewitz provided an update of the activities he had participated in, noting how important the program "Meals -on -Wheels" is to many citizens and the importance of disaster preparedness He noted Q the football fundraiser raised a significant amount of funds and Grand Terrace's commitment to healthy U) lifestyles He announced a new bus line, the San Bernardino Green Line, would start running from 8 California State University San Bernardino to Loma Linda University Mayor Stanchkiewitz stated San S Bernardino County Supervisor Ramos was promoting donations to a non-profit which would help benefit 2 the county overall, and an email had been established, www givebigsbcounty org for those interested 6 PUBLIC HEARINGS Item pulled by City Manager Henderson at the beginning of the meeting and moved to a later date, due to the cost proposal received being significantly higher than the staff estimate He noted the subject would be brought back to the Council once a Request for Bids (RFB) was completed A Speed Zone Survey City of Grand Terrace Page 3 Packet Pg 6 3B Minutes Grand Terrace City Council Apnl 22, 2014 RESULT FORWARDED Next 5/13/2014 6 00 PM 9 CLOSED SESSION The Mayor noted that the beginning of the meeting Closed Session Item No 9 would be moved to a future meeting A CONFERENCE WITH REAL PROPERTY NEGOTIATORS, pursuant to Section 54956 8 of the Government Code Mayor Walt Stanckiewitz determined at the beginning of the meeting Closed Session Item No 9 would be moved to a future meeting (May 13, 2014) due to lack of quorum Property Grand Terrace Senior Citizens [Community Services Center located at 22140 Barton Road, Grand Terrace, Ca 92324 Agency negotiator Kenneth J Henderson, Interim City Manager Negotiating parties Grand Terrace Lions Club Under negotiation Terms of Lease Payment ADJOURN City Council meeting adjourned at 7 40 PM The Next Regular City Council Meeting will be held on Tuesday, May 13, 2014 at 6 00 PM Mayor of the City of Grand Terrace City Clerk of the City of Grand Terrace City of Grand Terrace Page 5 Packet Pg 8 REPORT AGENDA MEETING DATE May 13, 2014 Council & Successor Agency Item TITLE Approval of Check Register No 05-13-2014 PRESENTED BY Cynthia Fortune, Finance Director RECOMMENDATION Approve Attached Check Register for May 13, 2014, as submitted, which includes the Check Register Account Index and Voucher Listings for Fiscal Year 2013-14 BACKGROUND The Check Register for May 13, 2014 is presented in accordance with Government Code §37202 and is hereby submitted for the City Council's approval The attached index to the Check Register is a guideline account list only and is not intended to replace the comprehensive chart of accounts used by the City and the Successor Agency Expenditure account number formats are XX-XXX-XXX [Fund - Department -Account] Expenditures may be made from trust/agency accounts (Fund 23-XXX-) or temporary clearing accounts which do not have a budgetary impact t A total of $684,617 45 in accounts payable checks were issued during the period for services, reimbursements, supplies and contracts and are detailed in the attached check register New vendors Check No Payee Description Amount Archive Tape storage services for 70318 Iron Mountain Feb-2014 $103 30 Lance, Soil & Government Accounting & Auditing 70319 Lun hard, LLP Seminar for Finance Dept $110 00 Payments larger than $10,000 Check No payee Description Amount 70300 Jones & Mayer Legal Services from Dec-2013 to $25,262 50 Mar-2014 70301 Public Employees' Contributions for payroll ending $16,162 76 Retirement March 14, 2014 70322 Lagerlof, Senecal, Waste water legal services from $20,369 75 Gosne Dec-2013 to Mar-2014 70327 Public Employees' Contributions for payroll ending $12,264 10 Retirement Aril 11, 2014 Packet Pg 9 City of Grand Terrace Check Register Index No Fund Name 09 CHILD CARE FUND 10 GENERALFUND 11 STREET FUND 12 STORM DRAIN FUND 13 PARK FUND 14 AB 3229 COPS FUND 15 AIR QUALITY IMPROVEMENT FUND 16 GAS TAX FUND 17 TRAFFIC SAFETY FUND/ TDA FUND 19 FACILITIES DEVELOPMENT FUND 20 MEASUREIFUND 21 WASTE WATER DISPOSAL FUND 22 COMMUNITY DEV BLOCK GRANT 26 LSCPG/ LGHTG ASSESSMENT DIST 44 BIKE LANE CAPITAL FUND 46 STREET IMPROVEMENT PROJECTS 47 BARTON RD BRIDGE PROJECT 48 CAPITAL PROJECTS FUND 32 CRA-CAPITAL PROJECTS FUND 33 CRA-DEBT SERVICE FUND 34 CRA-LOW & MOD HOUSING 3t No Department Name/Cost Center 110 CITY COUNCIL 120 CITY MANAGER 125 CITY CLERK 140 FINANCE 160 CITY ATTORNEY 172 BUILDING & SAFETY 175 PUBLIC WORKS 180 COMMUNITY EVENTS 185 RENTAL INSPECTION PROGRAM 187 ENFORCEMENT PROGRAM 190 GENERAL GOVERNMENT (NON-DEPT) 195 FACILITIES MAINTENANCE 370 COMMUNITY & ECONOMIC DEV 380 MGT INFORMATION SYSTEMS 410 LAW ENFORCEMENT 430 RECREATION SERVICES 440 CHILD CARE 450 PARKS MAINTENANCE 510 STREET & SIGNAL LIGHTING 600 WEST SIDE PARK 601 TRACT 14471 PICO & ORIOLE 602 FORREST CITY PHASE II 631 STORM DRAIN MAINTENANCE 801 PLANNING COMMISSION 802 CRIME PREVENTION UNIT 804 HISTORICAL & CULTURAL COMM 805 SENIOR CITIZENS PROGRAM 807 PARKS & REC COMMITTEE 808 EMERGENCY OPERATIONS PROG Acct No General Account Numbers 110 SALARIES/WAGES 139 EMPLOYEES' BENEFIT PLAN 140 RETIREMENT 142 HEALTH/LIFE INSURANCE 143 WORKERS' COMPENSATION 138/141 MEDICARE / SUI 210 OFFICE EXPENSE 218-219 NON -CAPITAL FURN/SMALL TOOLS 220 SPECIAL DEPARTMENTAL EXP 230 ADVERTISING 235 COMMUNICATIONS 238-239 UTILITIES 240-242 RENTS & LEASES 245-246 MAINT BLDG GRNDS EQUIPMNT 250-251 PROFESSIONAL SERVICES 255-256 CONTRACTUAL SERVICES 260 INSURANCE & SURETY BONDS 265 MEMBERSHIPS & DUES 268 TRAINING 270 TRAVEUCONFERENCES/MTGS 272 FUEL & VEHICLE MAINTENANCE 570 WASTEWATER TREATMENT 33-300 DEBT SERVICE 7XX FACILITIES IMPRV (NO CIP) 700 COMPUTER -RELATED 701 VEHICLES & EQUIPMENT Attachment Check Register Account Index (Check Register No 05-13-2014) vchlist 05/02/2014 5 37 24PM {yam i Voucher List CITY OF GRAND TERRACE Bank code bola Voucher Date Vendor 70303 5/2/2014 011194 AMERICAN FIDELITY ASSURANCE CO 70304 5/2/2014 011195 AMERICAN FIDELITY ASSURANCE CO 70305 5/2/2014 011308 ARAIZA JENNIFER 70306 5/2/2014 001206 ARROWHEAD CREDIT UNION 70307 5/2/2014 010693 ARROWHEAD UNITED WAY 70308 5/2/2014 001213 AT & T 70309 5/2/2014 010070 BEARDSLEY, KEVIN HOWARD T~ Page 2 Invoice pescrnption/Account Amount B127366 APR EMP PAID ACC/SUP LIFE/SUP STD 23-250-20-00 37928 c Total 37928 N. M 1021343A APR EMP PAID FLEX SPENDING/DEP CARE y 23-250-10-00 , 50472 Total 50472 Z BL ACCT 25269 REFUND 2013 FEES-ACCT 25269 EXEMPT +; 10-200-03 N 3000tM Total 3000 MAR/APR 2014 MAR/APR VISA CHARGES 'Y 10-120-220-000-000 BOOKS/SUPPLIES 17116 t 09-440-228-000-000 CHILD CARE SUPPLIES 1526 V 09-440-220-000-000 CHILD CARE FOOD SUPPLIES 11667 er 23-200-14-00 CHILD CARE SUPPLIES 82580 0 10-450-245-000-000 IRRIGATION PARTS 23656 M 10-175-218-000-000 MAINTENANCE SUPPLIES 2538 t; 10-805-245-000-000 SR CNTR MAINT SUPPLIES 2886 Co 10-175-272-000-000 MAINT TRUCK TIRES 68444 10-450-246-000-000 MAINT OF EQUIPMENT 16841 Ro Total 2,27254 m PR 3/28 & 4/11 CONTRIBUTIONS FOR PR END 3/28/14 & 4/11/ �e 10-022-65-00 3400 aa) Total 3400 V MAR/APR 2014 MAR/APR PHONES & INTERNET SRVS d 10-190-235-000-000 94585 E 09-440-235-000-000 91372 10-450-235-000-000 7554 10-805-235-000-000 20935 Q 10-808-235-000-000 - 12751 Total 2,27197 012-14 JAN-MAR COUNCIL VIDEO SERVICES i 10-125-250-000-000 25000 Page 2 'Packet Pg 13 vchlist 05/02/2014 5 37 24PM Bank code bofa Voucher Date Vendor 70318 5/2/2014 011312 IRON MOUNTAIN INC 70319 5/2/2014 011310 LANCE SOLL & LUNGHARD LLP 70320 5/2/2014 001810 CITY NEWSPAPER GROUP 70321 5/2/2014 001810 CITY NEWSPAPER GROUP 70322 5/2/2014 011267 LAGERLOF, SENECAL, GOSNEY Voucher List CITY OF GRAND TERRACE Page 4 Invoice Description/Account Amount 200234505 FEB ARCHIVE TAPE STORAGE a 10-140-250-000-000 51 65 c 10-380-250-000-000 51 65 N. Total _ _ _ 10330 C" 05042014 GOVT ACCOUNTING/AUDITING SEMINAR 10-140-270-000-000 11000 Z Total 11000 m 18609 ADVERTISING PUBLICATIONtM N 10-125-230-000-000 12329 18854 ADVERTISING PUBLICATION 10-370-230-000-000 10360 Y 18855 ADVERTISING PUBLICATION = V 10-370-230-000-000 10684 19085 ADVERTISING PUBLICATION d T 10-370-230-000-000 12626 N 19171 ADVERTISING PUBLICATION M 10-370-230-000-000 14245 19305 ADVERTISING PUBLICATION 10-125-230-000-000 14245 w 19382 ADVERTISING PUBLICATION N aM 10-125-230-000-000 11008 a) 19424 ADVERTISING PUBLICATION ,Y 10-370-230-000-000 9389 d Total 94886 U 18914 ADVERTISING PUBLICATION w 10-125-230-000-000 9713 E 19065 ADVERTISING PUBLICATION -� 10-125-230-000-000 12303 19919 ADVERTISING PUBLICATION Q 10-125-230-000-000 6475 Total 28491 48644 NOV WASTEWATER LEGAL SERVICES 21-175-250-000-000 5 664 00 Page 4 Packet Pg 15 vchlist Voucher List 05/02/2014 5 37 24PM CITY OF GRAND TERRACE Bank code bofa Voucher Date Vendor 70329 5/2/2014 006285 RIVERSIDE HIGHLAND WATER CO 70330 5/2/2014 006453 S B COUNTY AUDITOR/CONTROLLER 70331 5/2/2014 006531 S B COUNTY SHERIFF 70332 5/2/2014 006531 S B COUNTY SHERIFF 70333 5/2/2014 010664 SHELL FLEET MANAGEMENT 70334 5/2/2014 006720 SO CA EDISON COMPANY 70335 5/2/2014 006730 SO CA GAS COMPANY Invoice (Continued) fI Page 6 Description/Account Amount Total 24584 •� 4612 CONFIRMATION FEES FOR AUDITORS 10-140-250-000-000 13476 MAR LAW ENFORCEMENT SERVICES 10-410-256-000-000 14-411-256-000-000 10-410-255-000-000 13510 APR LAW ENFORCEMENT SERVICES 10-410-255-000-000 10-410-256-000-000 14-411-256-000-000 8000209687404 MAR/APR VEHICLE FUEL USAGE 10-175-272-000-000 MAR 2014 MAR ENERGY USAGE 09-440-238-000-000 10-190-238-000-000 10-450-238-000-000 10-805-238-000-000 16-510-238-000-000 26-600-238-000-000 26-601-238-000-000 26-602-238-000-000 MAR 2014 MAR NATURAL GAS/CNG FUEL 0 N 168 00 M Total € 16800 u9 0 0 113,913 00 Z 8 333 00 a; 5,40000 N Total 127,646 00 5 400 00 113 913 00 �? 8 333 00 Total 127,646 00 p N M T- 231 11 6 Total 23111 `m N 67900 2816 Y 60309 74412 V 5 783 91 4980 41 50 E 5810 Total 7,98768 Q Page 6 Packet Fig 17 vchlist Voucher List Page 8 05/02/2014 5 37 24PM CITY OF GRAND TERRACE Bank code bofa Voucher Date Vendor Invoice Description/Account Amount 70338 5/2/2014 005400 OFFICE DEPOT (Continued) 0 202 96 N M xut 6862 c 0 51 38 Z 70339 5/2/2014 010996 CA PUB EMPLOYEES' RET SYSTEM 706428479001 OFFICE SUPPLIES 10-140-210-000-000 706428675001 OFFICE SUPPLIES 10-190-220-000-000 706429972001 CITY HALL KITCHEN SUPPLIES 10-190-220-000-000 707158M001 OFFICE SUPPLIES 10-140-210-000-000 707158123001 CITY HALL KITCHEN/OFFICE SUPPLIES 10-190-220-000-000 10-140-210-000-000 707158124001 OFFICE SUPPLIES 10-140-210-000-000 1398 MAY HEALTH INSURANCE/ADJUSTMENTS DUE Total Lm 4210 N as d 2193 1483 d ,c 1549 �? 1,05131 v T O N M 0 L d N Im d 0 Page 8 Packet Pg 99,1 { vchlist 05/02/2014 5 37 24PM Bank code bofa Voucher Date Vendor 70339 5/2/2014 010996 CA PUB EMPLOYEES' RET SYSTEM 70340 5/13/2014 010019 5 POINT AUTO SERVICE 70341 5/13/2014 011304 ACCENT GRAPHICS & DESIGN Voucher List CITY OF GRAND TERRACE a� 3Cb Page 10 Invoice Description/Account Amount (Continued) .. et 10-625-142-000-000 5537 c 16-175-142-000-000 3955 N 21-625-142-000-000 -- 2373 0 32-200-142-000-000 9888 in 10-022-61-00 82627 c 10-125-142-000-000 27685 Z 10-172-142-000-000 36584 10-175-142-000-000 10876 N 10-625-142-000-000 5537 tM 16-175-142-000-000 5933 21-175-142-000-000 7910 Y 21-625-142-000-000 2373 32-200-142-000-000 21753 V 10-022-61-00 1,31277 10-172-142-000-000 6921 10-175-142-000-000 6921 N 10-625-142-000-000 5537 co 16-175-142-000-000 3955 21-175-142-000-000 3955 c 21-625-142-000-000 L 2373 a; 32-200-142-000-000 y 9888tM 10-022-61-00 97256 (D Total 11,303 23 Y v 21293 C CARE BUS OIL CHANGE °) t 09-440-272-000-000 12563 V Total 12563 = as 14-0004 BUSINESS CARDS E r 10-120-210-000-000 6480 ca 14-0009 BUSINESS CARDS V Q 10-120-210-000-000 3240 10-140-210-000-000 6480 14-0054 BUSINESS CARDS 10-120-210-000-000 3240 Page 10 Packet Fig 21 vchlist 05/02/2014 5 37 24PM Bank code bofa Voucher Date Vendor 70350 5/13/2014 001942 DATA TICKET INC 70351 5/13/2014 002082 DISCOUNT SCHOOL SUPPLY 70352 5/13/2014 002301 FEDEX 70353 5/13/2014 002500 FIREMASTER 70354 5/13/2014 010632 HIGH TECH SECURITY SYSTEMS 70355 5/13/2014 011311 HODSON LANA 70356 5/13/2014 003216 HOUSTON & HARRIS PCS INC 70357 5/13/2014 011235 IQM2INC 70358 5/13/2014 011312 IRON MOUNTAIN INC Voucher List CITY OF GRAND TERRACE �I 3Cb Page 12 Invoice Description/Account Amount 52550 FEB PARKING CITATION PROCESSING SERVICES Iq 10-140-255-000-000 44546 c Total 44546 nt eM D19042030001 C CARE CLASSROOM SUPPLIES u7 09440-221-000-000 38470 c Total 38470 Z 2-618-84394 MAR/APR DOCUMENT DELIVERY 10-140-210-000-000 5775 L Total 5775 � 0000148853 SR CTR KITCHEN HOOD INSPECTION 10-805-246-000-000 28500 c Total 28500 V 107987 MAY SECURITY MONITORING c 10-195-247-000-000 2000 N 10-450-246-000-000 6000 Total 8000 c 04152014 DOG LICENSE REFUND-ACCT 1613 L +r 10-200-15 rn 2700 Total 2700 14-18237 EMERGENCY HYDRO- WASH/CLEANING SERVICE v d 10-631-255-000-000 54375 V Total 54375 c 6465 APR MINUTE TRAQ SUBSCRIPTION E 10-125-250-000-000 55000 Total 55000 a 200264613 MAR ARCHIVE TAPE STORAGE 10-140-250-000-000 5165 10-380-250-000-000 5165 Total 10330 Page 12 Packet Pg 23 I ;Y vchlist 05/02/2014 5 37 24PM Bank code bofa Voucher Date Vendor 70364 5/13/2014 006285 RIVERSIDE HIGHLAND WATER CO 70365 5/13/2014 006310 ROADRUNNER SELF STORAGE INC 70366 5/13/2014 011175 ROBLES SYLVIA 70367 5/13/2014 006335 ROQUET PAVING INC 70368 5/13/2014 006341 ROSENOW SPEVACEK GROUP INC 70369 5/13/2014 006451 S B COUNTY ASSESSOR Voucher List CITY OF GRAND TERRACE 3 C b Page 14 Invoice Description/Account , Amount (Continued) .� FEB/MAR 2014 FEB/MAR WATER USAGE AND FEES c 48-600-330-010-000 8212 N 09-440-238-000-000 -- 20580 co 10-450-238-000-000 `- 13 603 48 10 26-601-239-000-000 9120 1 10-190-238-000-000 45278 Z 32-600-301-000-000 1214 L 10-805-238-000-000 1,23929 N 52-700-710-000-000 1214 En 32-600-307-000-000 2428 32-600-326-000-000 2428 to 32-600-216-000-000 1214 d 32-600-214-000-000 4720 V 26-600-239-000-000 14824 " 52-700-767-000-000 1214 Total 6,48348 N M 17239 MAY STORAGE RENTAL T7 10-140-241-000-000 12400 c Total L 12400 F; APR 2014 APR HEALTH INSURANCE REIM-ROBLES d 10-110-142-000-000 39550 Total 39550 v d s 0305-14 STORM DRAIN EMERGENCY REPAIRS U 10-631-255-000-000 9 835 00 Total 9,835 00 a) E 0029766 PROPERTY TAX CONSULTING SERVICES 10-190-250-000-000 cc 53500 29837 PROPERTY TAX CONSULTING SERVICES Q 10-190-250-000-000 67750 Total 1,212 50 105974 UPDATED ASSESSOR PARCEL MAPS Page 14 Packet Pg 25 vchlist 05/02/2014 5 37 24PM Bank code bofa Voucher Date Vendor 70375 5/13/2014 011275 SYSCO RIVERSIDE INC 70376 5/13/2014 011110 TIME WARNER CABLE 70377 5/13/2014 011253 TLMAADMINSTRATION 70378 5/13/2014 007843 WEST COAST ARBORISTS INC 70379 5/13/2014 007854 WESTERN EXTERMINATORS CO 70380 5/13/2014 007920 WILLDAN 83 Vouchers for bank code bola Voucher List CITY OF GRAND TERRACE C3Cb Page 16 Invoice Description/Account Amount (Continued) .-. 4041507288 C CARE FOOD SUPPLIES c 09-440-220-000-000 N 4358001 4042208894 C CARE FOOD SUPPLIES - 09-440-220-000-000°,r 9289 c 4042208902 C CARE FOOD SUPPLIES C 09-440-220-000-000 51082 z Total 1,90491 y 8448 3825 APR/MAY SR CTR CABLE & INTERNET SRV T tM 10-805-238-000-000 5891 w 8448 7245 APR/MAY SR CTR CABLE & INTERNET SRV 9 10-805-238-000-000 4652 Total V 10543le TL0000010480 MAR TRAFFIC SIGNAL MAINTENANCE 16-510-255-000-000 56273 N Total 56273 r 95889 TREE TRIMMING FOR ORANGE GROVE PKWY v7 c 10-195-245-020-000 L 2 976 00 Total 2,97600 T tM 2094341 MAR PEST CONTROL SERVICES 10-195-245-000-000 9800 v 10-805-245-000-000 3800 Total 13600 V 002-14276 MAR PLAN CHECK & INSPECTION SERVICES m 10-172-250-000-000 4,30000 ,� 002-14277A MAR BUILDING TECHNICIAN/OFFICIAL SRVS v ca 10-172-250-100-000 3,23250 a 002-14277B MAR PUBLIC WORKS OFFICIAL SRVS 16-175-255-100-000 65000 Total 8,18250 Bank total 684,617 45 Page 16 Packet Pg 27 riff .; MEETING ATE TITLE PRESENTED BY AGENDA REPORT May 13, 2014 Council & Successor Agency Item Approval of Fiscal Policies Steve Elam, Project Manager, Finance Department RECOMMENDATION Approve some, or all, of the attached fiscal policies BACKGROUND On April 22, 2014, the attached fiscal policies were submitted as a `receive and file" item to allow the City Council ample time for review before taking action on the policies They are now being returned for the City Council's action During the Council meeting of April 22nd, the City Council agreed to take action on the Section 1 policies (those related to safeguarding of assets) on May 13th, then take action on the Section 2 and 3 policies (those related to liability and general fiscal management respectively) on May 27th The complete set of fiscal policies is, however, included in the agenda packet in the event the City Council wishes to take action on all the policies during its meeting of May 13th DISCUSSION The Finance Department has committed to developing a core set of fiscal policies to improve the City's internal controls, accountability and overall financial management Following is a listing of the policies that have been developed Policies Related to Safeguarding of Assets (Section 1) • Cash Handling & Control (1 01) • Petty Cash Funds & Change Boxes (1 02) • Accounts Receivable (1 03) • Investments (1 04) • Fixed Assets (1 05) • Disposition of Surplus Property (1 06) Fraud Prevention & Detection (1 07) Policies Related to Liability (Section 2) • Accounts Payable (2 01) Policies Related to General Fiscal Management (Section 3) • Purchasing (3 01) • Budget Appropriation Adjustments (3 02) • Travel & Related Business Expenses (3 03) • Grants (3 04) Packet Pg 29y r Attachment Fiscal Policies_2014 0513 (Approval of Fiscal Policies) 7Aa City of Grand Terrace Policy No 1 01 Fiscal Policy Subject Cash Handling & Control Effective Date Page 1 of 8 PURPOSE The purpose of this policy is to establish the practice by which all cash receipts, or cash equivalents, tendered to the City will be accepted, documented, recorded, safeguarded and deposited This policy is also intended to provide staff with acceptable practices in the handling and safekeeping of cash or cash equivalents DEFINITIONS Cashier Anyone who accepts payments on behalf of the City Cash Receipts Includes coin, currency, checks, money orders, or other cash equivalents that may be processed by a financial institution (Debit and credit card payments are also considered Cash Receipts, although they are not & currently accepted by the City) _a° M Cash Receipt Location (CRL) A physical location, other than the Main Cashier N at City Hall, which has been designated as a location to collect and receipt cash U. for the City of Grand Terrace C ea Main Cashier Located at the front counter of the Finance Department in City ° Hall C Point of Sale System (POS) A software program that can be run either on a r l stand-alone computer or on a network: and allows for the recording of cash c collection and receipting related to payments for goods or services r 0 N Remote Deposit The process for scanning and transmitting checks to the bank electronically for deposit 0 Returned Items Transactions that have been presented to the bank for deposit a and returned to the City due to account balance or status issues Such N transactions could include but are not limited to Non -Sufficient Funds (NSF) or U. closed accounts d Starter Checks Checks that are issued to a bank depositor upon the opening of a new checking account These checks typically do not contain any address or telephone information related to the depositor a POLICY Responsibility A The Finance Director has oversight, fiduciary, and administrative responsibility for all cash collections performed by City staff or on behalf of the City by contractors B The Finance Director has the responsibility and authority to ensure that all cash handling is performed according to this policy C This responsibility shall include Packet Pg 33 7Aa City of Grand Terrace Policy No 1 01 Fiscal Policy Subject Cash Handling & Control Effective Date Page 3 of 8 Remote Deposit Deposits processed by the Child Care Center require a deposit slip submitted to Finance for bank reconciliation purposes When the appropriate account coding is not immediately available, the payment should be deposited and coded to a suspense account until such time that the coding is identified and communicated to Finance staff Items placed in suspense need to be identified and reclassified to their correct account within ten working days or by the calendar month -end C Any request for the collection of cash receipts at a location other than the Main Cashier, CDD counter or Child Care Center must be authorized by the Finance Director and should include the following information 1 How customer service will be improved through the processing of payments 2 The cash custodian(s) 3 How cash activities will be accounted for (for example, cash register, hand receipts, etc ) 4 How cash receipts will be safeguarded (for example, safe or lockbox) 5 How deposits will be managed D A list of approved collection locations will be maintained by the Finance Department �- s r E All Cash Receipts will be maintained in a secured area with limited access F The establishment of change funds to support collection operations will follow the guidelines set forth in Fiscal Policy No 1 02 (Petty Cash Funds & Change Boxes) G All City employees who handle cash will be included under the City's insurance coverage V Methods of Payment A The following methods of payment will be accepted 1 Cash 2 Checks 3 Money Orders 4 Traveler's Checks 5 Wires / Electronic Funds Transfer (EFT) 6 Other forms of tender as approved by the Finance Director and the City's bank 7 Note Debit and credit card payments are currently not accepted but are recognized as an allowable payment method once the City has established the procedures to process such payments B Checks 1 Checks, Money Orders and Traveler's Checks are to be made payable to the City of Grand Terrace 3 Packet Pg 35 7Aa City of Grand Terrace Policy No 1 01 Fiscal Policy Subject Cash Handling & Control Effective Date Page 5 of 8 When checks are received through the mail the following requirements will be met i Checks will be restrictively endorsed The first employee at a Cash Receipt Location to come in contact with a check is responsible to have the check restrictively endorsed Endorsement stamps will be obtained from the Finance Director or his/her designee In the case of checks processed through the Remote Deposit process, the endorsement is automatically generated ii If the check is payable to the City but lacks sufficient information to identify the appropriate general ledger account number, write "SUSPENSE" on the deposit form and present to the Main Cashier or Finance Department staff The check will then be deposited into the bank When the appropriate general ledger account number is identified, provide the coding to Finance so that the funds can be properly applied to the account The appropriate account should be identified prior to the month -end closing 4 Business Checks Company checks will be inspected to ensure that multiple signatures are in place if required or if a "not valid over $" statement is included 5 Traveler's Checks n t, a Traveler's checks are treated as cash but will require the following actions i Cashier must witness the customer write in the payee ii Cashier must witness the customer countersign the check iii Signature and countersignature should be compared Identification will be required c No traveler's checks drawn on foreign funds will be accepted 6 Cashier's Checks / Personal Money Orders a Cashier's Checks and Personal Money Orders will be accepted b Identification will be required 7 Currency a Anyone receiving cash payments is responsible for exercising reasonable care in screening cash transactions for counterfeit currency Mutilated currency is still legal tender Staff may ask customers to substitute another bill for the mutilated bill If they cannot substitute the bill staff must accept the mutilated bill Packet Pg 37 7Aa City of Grand Terrace Policy No 101 Fiscal Policy Subject Cash Handling & Control Effective Date Page 7 of 8 1 Customer 2 Issuing department 3 Cash drawer/transaction 4 Receipt book VII Balancing and Reconciling A It is the responsibility of each cashier to balance and reconcile his/her cash drawer(s) daily Cash drawer(s) should be equal to the change fund plus the balance of cash receipt activity for the day or shift B Cash drawer(s) should be reconciled against the daily cash receipts report, cash register tape or calculator tape depending on whether the site uses a POS system, a cash register, or manual receipts C Overage / Shortage 1 When the amount in the cash drawer does not balance with the daily report, staff will report an Overage or a Shortage as appropriate 2 When an Overage or Shortage is identified, staff will complete the City of Grand Terrace Overage/Shortage Form and submit with their deposit 3 The Overage/Shortage form will require the following information a Date of Deposit b Amount of overage/shortage c Reason for overage/shortage d Signature of staff responsible for drawer e Signature of supervisor 4 The Overage/Shortage Form must accompany deposit to the Main Cashier 5 Overages or Shortages in excess of $10 must be immediately brought to the attention of the Finance Director or his/her designee upon identification 6 Under no circumstances is City staff allowed to balance overages by keeping the overage out of the deposit or balance shortages by taking money from other sources, such as out of pocket or money held back from a previous overage VIII Requirements for Deposit A All cash receipts will be deposited into the City's bank account in a timely manner to ensure the proper posting of accounts and to ensure the safety of staff and City funds 1 Deposits can be made at the Main Cashier during City Hall business hours 2 Deposits not taken to the bank the same day will be secured by Finance staff in a fireproof and locked cabinet or safe A drop safe is utilized at the Child Care Center for checks not processed the same day as received No cash is to be dropped off B All Cash Receipt Locations will prepare deposits whenever accumulated deposits total $500 or more NN d 0 a �a U) LL 4- 0 R 0 a a a M LO 0 0 N� N d 0 a W 0 0 U. d E m Packet Pg 39 7Aa City of Grand Terrace Policy No 1 02 Fiscal Policy Subject Petty Cash Funds & Change Boxes Effective Date Page 1 of 4 PURPOSE, For Petty Cash — To authorize the use of petty cash funds for emergency purchases and minor out-of-pocket expense reimbursement For Change Boxes — To authorize change boxes for the sole purpose of making change DEFINITIONS Petty Cash is defined as a small fund of cash that is maintained for the payment of incidental expenses It may also be advanced to employees on an exception basis to make small, Incidental purchases where payment by check is not possible or not feasible given the circumstances It is also available on an exception basis to reimburse City officials or employees for prior -approved, City business -related purchases which were originally paid out-of-pocket, and where reimbursement by check is not feasible under the circumstances Change Box is defined as a small fund of cash requiring a particular mix of denominations of dollar bills and coinage for the explicit purpose of making change Reimbursements and advances for incidental City purchases may not be made from a change fund POLICY Approval to Make Purchases or Receive Reimbursement from Petty Cash A Advance approval from the employee's department head must always be obtained to make a Petty Cash purchase or to be reimbursed for out-of-pocket expenses from Petty Cash Without prior approval, there should be no expectation that an out-of-pocket expense will be reimbursed by Petty Cash For recurring purchases, a standing approval may be given by the department head so that advance approval is not needed for each transaction B Use of Petty Cash is considered an exception to the standard means of procuring supplies Issuance of a City check shall be the preferred method of procurement II Establishment and Authorization of Petty Cash Funds A Petty Cash funds have been established in the following amounts City Hall (Finance Department) $550 Child Care Center $500 Community Services * $100 * Maintained in the Finance Department and used for special events such as Animal Licensing B Increasing the above amounts or establishing any additional Petty Cash funds requires written recommendation by the applicable department head and Finance Director, and approval by the City Manager UN 0 a V! LL w 0 ea 0 c. c. a M LO 0 et 0 NI W d 0 a 4 U. c d E 0 ca Packet Pg 41 7Aa City of Grand Terrace Policy No 1 02 Fiscal Policy Subject Petty Cash Funds & Change Boxes Effective Date Page 3 of 4 5 If the purchase was for more than the advanced amount, the recipient must submit a new and approved Petty Cash Request Form for the total amount of the purchase The fund custodian will reimburse the recipient for his/her out-of-pocket amount and return the original Petty Cash Request Form previously submitted C Procedure for Use of Petty Cash for Out -of -Pocket Reimbursement 1 The requesting department or individual must complete the Petty Cash Request Form for review and approval The completed form shall provide date, dollar amount requested, description, account number to be charged, and the appropriate signature approvals prior to presentation 2 Actual receipts of the out-of-pocket purchase must be attached to the Petty Cash Request Form 3 In the event the amount requested exceeds the limits set forth in Section III A of this Policy, the signature of the Finance Director or his/her designee shall be obtained to approve the disbursement D Replenishment of the Petty Cash Fund } To replenish the Petty Cash fund, the fund custodian will attach all receipts and the applicable Petty Cash Request Fofms, complete a payment request form, obtain the appropriate authorization signatures, and submit the reimbursement request to the Finance Department V Approval to Establish or Increase a Petty Cash Fund A The Finance Director shall be responsible for review of any request to establish or increase a Petty Cash fund, however, approval to establish a new fund or increase an existing fund requires approval of the City Manager B Such requests shall be submitted in writing to the Finance Director by the department head responsible, and shall include justification for the request If the Finance Director is in agreement with the request, he/she will indicate his/her approval and forward the request to the City Manager for final approval VI Change Boxes A Authorization and Control 1 Three (3) Change Boxes are currently authorized in the Finance Department and integrated with the cash register 2 Each Change Box maintains cash and coin totaling $200 3 Each Cash Box has a separate custodian with individual password L I security and daily reconciliation 11 Packet Pg _43 7Aa City of Grand Terrace Policy No 1 03 Fiscal Policy Effective Date Subject Accounts Receivable Page 1 of PURPOSE To establish uniform guidelines and principles for the recognition, recording, collection and write-off of accounts receivable related to goods or services provided by the City or for citations issued by or administered by the departments of the City DEFINITIONS Accounts Receivable A debt owed to the City that arises in the normal course of business dealings and not supported by negotiable paper, a claim against a debtor usually arising from sales or services rendered Accounts receivable include but are not limited to, rent, concession fees, permit fees, license fees, citations, and payments for goods and services Allowance for Doubtful Accounts A valuation account (i a contra asset) that is subtracted from the trade receivable on the balance sheet Bad Debt A past due account receivable that, despite best efforts by the City, remains unsatisfied and for which there is reasonable doubt that the underlying debt will be satisfied in whole or in part The expense for a bad debt is recognized when the account receivable becomes doubtful, which typically occurs prior to the write-off of the receivable The recording of Bad Debt is for accounting purposes only and this action; does not discharge the debt The debt is still owed to the City, however, the amount shown as owed to the City has been adjusted off the financial statement to reflect the doubtful collection Cognizant Department The department within the City that negotiated the agreement or contract, or issued the citation or invoice giving rise to the particular account receivable Debt In the context of this policy, debt refers to a sum of money due by express agreement between the City and another party or parties Debt may be owed the City by an individual or by a business entity Past Due Refers to an account receivable for which payment has not been received by the established due date Unearned Revenue. An accounting transaction where items are not recognized as revenue in the current period because they do not meet the "availability" or "collectability" standards in order to be recorded in the current period Write -Off An accounting transaction that removes an account receivable from the accounting books and records, and signals the end of any further collection efforts related to that account receivable d 0 a �a w LL 4- 0 R 0 L a c. a v M LO 0 0 NI U 01 2 0 a N LL _ 0 E M 0 a 13 Packet Pg 45 7Aa City of Grand Terrace Policy No 103 Fiscal Policy Effective Date Subject Accounts Receivable Page 3 of 5 8 In conjunction with the Finance Department, annually review the collectability of outstanding accounts at fiscal year-end C Contractors working on behalf of the City to collect for goods or services provided or for citations issued are responsible to perform the following functions 1 Provide to the Finance Department a monthly aging schedule of all Accounts Receivable including an accounting of current billings, collections and any other activity conducted on accounts related to City services or citations 2 Maintain a system that tracks the history and status of customer accounts III Payment Terms / Collections A The following payment terms and collection process shall be followed 1 Payments will be due within 30 days from the invoice date 2 Interest/Penalty/Late Fees will be charged in a manner consistent with applicable ordinances or policies The imposition of interest charges, penalties or late fees will be communicated to the customer through the following methods a A warning notice or statement will be sent out thirty (30) days in advance of i thespenalty effective date b A new statement will be sent out with the amended invoice/citation amount including the appropriate interest, penalty or late fee 3 Statements will be issued on a monthly basis unless there are circumstances that warrant some other billing cycle Exceptions from the monthly billing cycle must be approved by the Finance Director 4 The Cognizant Department may be requested to assist Finance staff in collection efforts on accounts more than 60 days outstanding 5 Accounts more than 60 days outstanding may be assigned to a collection agency as determined by the Finance Director IV Financial Reportinq for Accounts Receivable A The Finance Department will record the revenues and associated accounts receivable in accordance with Generally Accepted Accounting Principles B Periodically, at least annually in conjunction with the fiscal year-end audit, open accounts receivable balances will be reviewed in order to ensure that the City's financial statements accurately and appropriately reflect the status of these accounts C The collectability of open accounts receivable will be estimated so that they can be reflected in the City's financial statements at their net realizable value, which is consistent with Generally Accepted Accounting Principles These amounts will be } reflected in the following manner 15 Packet Pg 47 7Aa City of Grand Terrace Policy No 1 03 Fiscal Policy Effective Date Subject Accounts Receivable Page 5 of 5 1 A detailed account aging (listing of date of service/citation and amount owed by account), 2 A description of collection efforts undertaken, 3 Explanation of reason(s) account(s) is/are determined to be uncollectible, 4 A signed Application for Discharge of Accountability form (Exhibit A) D Applications for Discharge of Accountability that have been deemed by the Finance Director to be appropriate to forgo further collection actions will be submitted to the City Manager for final approval E A copy of the completed Application for Discharge of Accountability and the supporting documentation will be forwarded to Finance staff for entry into the City's financial system d 0 a R LL 4- 0 R 0 a a Q M LO O et O N� N d V O a UN LL C O E C� c0 Q WA Packet Pg 49 7Aa City of Grand Terrace Policy No 1 04 Fiscal Policy Effective Date Subject Investments Page 1 of 4 PURPOSE To establish a policy for the management and oversight of the City's investments II POLICY It is the policy of the City of Grand Terrace to invest funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all statutes governing the investment of City funds III SCOPE This investment policy applies to all financial assets of the City These funds are audited annually and accounted for in the Annual Financial Report Funds include the General Fund, Capital Projects Fund, Special Revenue Funds, Enterprise Funds and Trust Funds, including funds held by the Successor Agency to the Grand Terrace Community Redevelopment Agency IV PRUDENCE Investments shall be made with judgment and care, under circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived The standard of prudence to be used shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility and/or liability for an individual security's credit risk or market price changes R V OBJECTIVES The primary objectives, in order of priority, of the investment program shall be A Safety Safety of principal is the foremost objective of the investment program Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio To attain this objective, diversification is required in order that potential losses in individual securities do not exceed the income generated from the remainder of the portfolio B Liquidity The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated C Yield The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into r , account the investment risk constraints and the cash flow characteristics of the portfolio VJ d V O a m N LL 4- 0 0 a c. Q v r! r LO 0 0 N' ch d 0 a �a tl! U. C d E s ca a 19 Packet Pg 51 7Aa City of Grand Terrace Policy No 1 04 Fiscal Policy Effective Date. Subject Investments Page 3 of 4 C Certificates of Deposit with State Banks, National Banks, State or Federal Savings Associations, State and Federal Credit Unions in California that are fully insured by federal deposit insurance The Treasurer (Finance Director) may waive collateralization in lieu of deposit insurance D Negotiable Certificates of Deposit, Collateralized with U S Treasury Obligations Having a Market Value of 110% The Treasurer (Finance Director) may, at his/her discretion, waive security for that portion of a deposit that is already covered by federal deposit insurance E Passbook Savings Accounts Placed with Federal or State Banks or Credit Unions that are fully insured by federal deposit insurance The Treasurer (Finance Director) may waive collateral ization in lieu of federal deposit insurance F Securities Issued by Federal Agencies G Local Agency Investment Fund (LAIF) 1 This is a special fund of the State Treasurer, in which local agencies are allowed to pool their funds for investment purposes up to a maximum of $50 million, with no restrictions on the amount of bond proceeds that can b"e invested' 2 LAW is part of the Pooled Money Investment Account (PMIA) The PMIA began in 1955 and oversight is provided by the Pooled Money Investment Board (PMIB) and an in-house Investment Committee The PMIB members are the State Treasurer, Director of Finance, and State Controller 3 All securities are purchased under the authority of Government Code Section 16430 and 16480 4 The State Treasurer's Office takes delivery of all securities purchased on a delivery -versus -payment (DVP) basis using a third -party custodian All investments are purchased at market and a market valuation is conducted monthly Additionally, the PMIA has policies, goals and objectives for the portfolio to ensure that the goals of Safety, Liquidity and Yield are not jeopardized and that prudent management prevails These policies are formulated by Investment Division staff and reviewed by both the PMIB and the LIAB on an annual basis 4 The State Treasurer's Office is audited by the Bureau of State Audits on an annual basis and the resulting opinion is posted to the State Treasurer's Office website following its publication The Bureau of State Audits also has a continuing audit process throughout the year All investments and LAW claims are audited on a daily basis by the State Controller's Office as well as an in-house audit process involving three separate divisions N d 0 a. VJ U. 4- 0 R 0 a a a M 0 v 0 N' U) d 0 a N LL c m E 0 a 21 Packet Pg 53 7Aa City of Grand Terrace Fiscal Policy Policy No 1 05 Effective Date Subject Fixed Assets Page 1 of 3 PURPOSE To establish the criteria for determining fixed assets, as well as their physical control, accountability, and depreciation DEFINITIONS Fixed Assets refers to land, buildings, equipment, furniture, vehicles, and improvements other than buildings, acquired by the City of Grand Terrace for use in the provision of goods and services to its citizens Not all Fixed Assets are required to be reported on the balance sheet Fixed Assets with very short useful lives, or of small monetary amounts, can be "expensed" in the period in which they are acquired Fixed Assets reported on n the balance sheet are said to be "capitalized", meaning the capital outlay is recorded as an addition to the asset account, and will have an expected useful o_0 life of at least two years The monetary criteria by which governments decide to report Fixed Assets on Ui the balance sheet, is known as the "capitalization threshold " Governments o may utilize separate thresholds for different classes of fixed assets, or establish a single threshold for all of its fixed assets o a a Capitalization is a financial reporting issue It addresses the material a expenditure level by which users of the City's financial reports are informed of the policy decision to account for Fixed Assets It does not eliminate the City's Ln responsibility for maintaining adequate control over all of its assets, or other vc equipment below the capitalization threshold, to minimize the risk of loss or N misuse i U! d v POLICY - 0 IL I Fixed Asset Capitalization Threshold Criteria U) U. A Land .. c d Land will be capitalized at actual cost There is no specific dollar threshold �o B Improvements to Land Q Improvements to land with a value of $25,000 or more will be capitalized Improvements valued at less than $25,000 will be expensed in the current year C Buildings and Budding Improvements Buildings and budding improvements with a value of $25,000 or more will be capitalized Buildings and improvements valued at less than $25,000 will be expensed in the current year - 2 Capitalized cost generally includes such items as site clearance and ? excavation, architectural fees, initial landscaping, budding construction and J others 23 Packet Pg 55 7Aa City of Grand Terrace Policy No 1 05 Fiscal Policy Subject Fixed Assets Effective Date Page 3 of 3 III Depreciation A Financial Statement Basis 1 Fixed Assets will be depreciated over their estimated useful lives, as reflected in the City's Annual Financial Report, in accordance with GASB Statement No 34 2 The straight-line method of depreciation will be used for all Fixed Assets, unless it is determined by the Finance Director or his/her designee, and confirmed by the City's outside auditor, that another depreciation method is more appropriate for a given Fixed Asset or a Fixed Asset class B Budgetary Basis 1 Depreciating Fixed Assets over their useful lives for budgetary purposes is not required but is a recommended practice in that it establishes an Asset Replacement Account for each Fixed Asset Such a practice increases the City's annual operating costs, in that depreciation charges become a budgeted expense, however, it levels operating expenses over time because when Fixed Assets are _replaced, the funds (or a portion of the { j funds) have already been set aside and therefore do not need to be re - budgeted 2 While the City has not previously depreciated Fixed Assets for budgetary purposes, it is the City Council's intent to do so beginning with the FY 2014- 15 budget, and to continue the practice on a go -forward basis thereafter 25 Packet Pg 57 J 7 Aa r" t Exhibit A Surplus Property Form Requesting Department Request Date Contact Person Property Description Location Model No Serial No Condition Reason No Longer Needed Recommended Disposal Method Trade-in Sale Auction Donation v 0 a N LL 4- 0 eo Comments regarding recommended disposal method a a Q v M If the surplus property is a fixed asset that is not fully depreciated, please provide detailed N justification for the requested disposal below Nt d 2 0 a cc 0 LA U. r Submitted by Date Department Head approval Date �o O Disposal endorsed O Disposal approved a O Disposal not endorsed O Disposal not approved Finance Director Date City Manager Date Comments Comments 27 Packet P,g 59 7Aa City of Grand Terrace Policy No 1 07 Fiscal Policy Subject Fraud Prevention & Detection Approval Date. 1/28/14 Page 2 of 7 contractors, outside agencies and/or any other parties with a business relationship with the City of Grand Terrace C Management — In this context, management refers to any administrator, manager, director, supervisor, or other individual who manages or supervises funds or other resources, including human resources D Investigator — In this context, Investigator refers to any person, persons or governmental agency assigned by the City Manager and/or the City Council to investigate any fraud or similar activity E External Auditor — In this context, External Auditor refers to independent audit professionals who perform annual audits of the City's financial statements III POLICY A The City of Grand Terrace is committed to protecting its assets against the risk of loss or misuse Accordingly, it is the policy of the City to identify and promptly investigate any possibility of fraudulent or related dishonest activities against the City and, when appropriate, to pursue legal remedies available under the law 12J B This policy applies to any irregularity, or suspected irregularity, involving Employees, consultants, vendors, contractors, outside agencies, and/or any other parties with a business relationship with the City C Any investigative activity required will be conducted in an objective and impartial manner, without regard to the suspected wrongdoer's length of service, position, title, or relationship to the City D All Employees are responsible for the detection, reporting and prevention of fraud, misappropriations, and other irregularities E It is the City's intent to fully investigate, or cause the investigation of, any suspected act of fraud, misappropriation, impropriety or other similar irregularity An objective and impartial investigation will be conducted regardless of the position, title, length of service or relationship with the City of any party who might be or become involved in or becomes the subject of such investigation F Each department of the City is responsible for instituting and maintaining a system of internal controls to provide reasonable assurance for the prevention and detection of fraud, misappropriations, and other irregularities Management should be familiar with the types of improprieties that might occur within their area(s) of responsibility and be alert for any indications of such conduct d 2 6 a N LL a. O 0 a a a M T LO O �r 0 Ni N d 2 0 IL T LL d E s CO a 29 Packet Pg 61. 7Aa City of Grand Terrace Policy No 1 07 Fiscal Policy Subject Fraud Prevention & Detection Approval Date 1/28/14 Page 4 of 7 N The City will pursue every reasonable effort, including court -ordered restitution, to obtain recovery of City losses from the offender, or other appropriate sources IV PROCEDURES A Management Responsibilities Management is responsible for being alert to, and reporting fraudulent or related dishonest activities in their areas of responsibility 2 Each City official should be familiar with the types of improprieties that might occur in his or her area(s) of responsibility and be alert for any indication that improper activity, misappropriation, or dishonest activity is or was in existence in his or her area(s) 3 When an improper activity is detected or suspected, Management should determine whether an error or mistake has occurred or if there may be dishonest or fraudulent activity 4 If Management determines a suspected activity may involve fraud or related dishonest activity, they should contact their next immediate CP supervisor not involved in the alleged misconduct — and together with CN al that supervisor inform their-, Department Director (unless the w Department Director is alleged to have involvement in the alleged misconduct) and City Manager 5 If the City- Manager is suspected to be involved in the alleged misconduct, the City Attorney should be notified in lieu of the City Manager If the City Manager and City Attorney are both suspected to be involved in the alleged misconduct, the Mayor should be notified in lieu of the City Manager or City Attorney The Mayor will, in turn, advise the other members of the City Council 6 Management should not attempt to conduct individual investigations, interviews, or interrogations However, Management is responsible for taking appropriate corrective actions to ensure adequate controls exist to prevent reoccurrence of improper actions 7 Management should support the City's responsibilities and cooperate fully with the Investigator, other involved departments, and law enforcement agencies in the detection, reporting, and investigation of criminal acts, including the prosecution of offenders 8 Management must give full and unrestricted access to all necessary records and personnel All City furniture and contents, including desks and electronic devices, are open to inspection at any time There is no reasonable expectation of privacy d 0 IL �o U) LL 0 R 0 M a a v M u� 0 v 0 N{ N d V 0 a m N_ LL c m E c� a 31 Packet Pg 63 �7Aa City of Grand Terrace Policy No 1 07 Fiscal Policy Subject Fraud Prevention & Detection Approval Date 1/28/14 Page 6 of 7 2 Employees must cooperate with the Investigator Refusal to cooperate, or the conveyance of inaccuracies, may subject an Employee to disciplinary action up to and including dismissal 3 In all circumstances where there appears to be reasonable grounds for suspecting that a fraud has taken place, the Investigator, in consultation with the City Manager, and City Attorney as appropriate, will contact the appropriate law enforcement agency 4 The Investigator shall be available and receptive to receiving relevant, confidential information to the extent allowed by law 5 If evidence is uncovered showing possible dishonest or fraudulent activities, the Investigator will proceed as follows a Discuss the findings with the City Manager and City Attorney b Meet with the City Manager to 1) Determine if disciplinary actions should be taken 2) Notify insurers and coordinate the filing of insurance claims CU �� t c Take immediate action, . n consultation with the City Manager and City Attorney, to prevent the theft, alteration, or destruction of evidentiary records Such action shall include, but is not limited to 1) Removing the records and placing them in a secure location, or limiting access to the records 2) Preventing the individual suspected of committing the fraud from having access to the records 6 In consultation with the City Manager and City Attorney, and the appropriate law enforcement agency, the Investigator may disclose particulars of the investigation to potential witnesses if such disclosure would further the investigation 7 If the Investigator is contacted by the media regarding an alleged fraud or audit investigation, the Investigator will not speak with the media but will instead refer the matter to the City Manager before a response is made 8 At the conclusion of the investigation, the Investigator will document the results in a confidential report to the City Manager If the report concludes that the allegations are founded, the report will be forwarded to the appropriate law enforcement agency and the City Council will be advised 33 Packet Pg 65 City of Grand Terrace Policy No 2 01 Fiscal Policy Subject Accounts Payable Effective Date Page 1 of 3 PURPOSE To define the process for review, authorization and payment of vendor invoices DEFINITIONS Check Register A report provided to the City Council on a monthly basis listing payments made to the various City vendors for the preceding month Discount A percentage or fixed amount that may be deducted from payment of a vendor's invoice if payment is made by a date determined by the vendor A common discount term is "1 % 10", meaning that one percent (1 %) may be deducted from the invoice amount if payment is made with 10 days of the invoice date EFT Electronic Funds Transfer, may be used as a payment alternative to City check when authorized by the Finance Director Invoice A bill rendered to the City by a vendor requesting payment for goods or services provided to the City Net 30 A specific type of trade credit where the payment is due in full 30 days after the item is purchased and an invoice received Purchase Order A City document authorizing a specified quantity of goods and/or services to be provided to the City at specified prices and terms Receiving Document A document provided to the City by a vendor attesting to the delivery of goods and/or services Statement A summary provided by a vendor showing amounts previously billed, paid, and the unpaid balance Vendor A business entity or agency providing goods and/or services to the City POLICY Payment Terms A In order to maintain good business relations with the City's Vendors, it is the policy of the City of Grand Terrace to pay Invoices for authorized goods or services within 30 days of Invoice receipt, (i e , on a Net 30 basis) unless specified otherwise by City Purchase Order or contract 35 Packet Pg 67 ' 7Aa City of Grand Terrace Policy No 2 01 Fiscal Policy Subject Accounts Payable Effective Date Page 3 of 3 offering Discount terms, which would be paid sooner than 28 days from receipt in order to qualify for the Discount (also allowing two days for mail processing and delivery) and payments made by EFT J If the City's business software system allows a "three-way matching" process, such that a Purchase Order, Invoice and Receiving Document are electronically matched, this process should be implemented since it is considered to be an industry "best practice" and eliminates the need for Invoices to be manually verified or provided to another department for review and approval City Council Approval A A Check Register will be prepared by the Finance Department and submitted to the _a° City Council for review and approval on a monthly basis during a regularly R scheduled City Council meeting N LL v- B The Check Register will list all vendor payments for the preceding month along ° with a brief description of the type of goods or services purchased and the account c code(s) associated with each payment a c. C In order to meet the Net 30 payment terms, and to take advantage of Discounts g offered by Vendors, payment of Invoices -will not be delayed pending approval of r the Check Register o 0 N. O IL �a N U. C d E t v l0 a 37 Packet Pg 69 . 7Aa City of Grand Terrace Policy No 3 01 Fiscal Policy Subject Purchasing Effective Date Page 2 of 4 11 Open Market Purchases ($501 - $10,000) The following procedures apply A Funds must be budgeted for the goods or services to be purchased B Three (3) informal price quotes must be obtained C A Purchase Requisition must be submitted to Finance by the requesting department with the price quotes attached as back-up Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing) D Following Finance review of the Purchase Requisition, a P O will be issued by Finance and mailed to the vendor, with a copy returned to the originating department Funds will also be encumbered in the financial system at this time (Note P O s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met ) E Invoices to be paid against an approved P O do not require a Request for Payment form Instead, to expedite processing, an approval stamp may be utilized on the invoice referencing the applicable P O (The account code to be charged does not need to be referenced on the invoice unless the P O is allocated to multiple account numbers, -as the invoice will be charged per the P O ) Department Head or designee signature is required on the invoice (per the Authorized Approval Listing) III Formal Purchases (over $10,000) The following procedures apply A Funds must be budgeted for the goods or services to be purchased B Formal contracting procedures must be followed as enumerated in Section 3 24 080 of the Purchasing Ordinance, including 1 Notice Inviting Bid 2 Bidders' List 3 Bidders' Security 4 Bid Opening Procedure 5 Performance Bonds as applicable 6 Formal Award of Contract by the City Council C Following award of contract, a Purchase Requisition should be submitted by the applicable department, with a copy of the executed contract and City Council staff report attached as backup Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing) D Following Finance review of the Purchase Requisition, a P O will be issued by Finance and mailed to the vendor, with a copy returned to the originating { t department Funds will also be encumbered in the financial system at this time (Note P O s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met ) as 0 a �a VJ U. 0 0 a c. a M 0 T 0 N� NN d 2 0 a �a H U. c as E s 0 a 39 Packet Pg 71 7Aa City of Grand Terrace Policy No 3 01 Fiscal Policy Subject Purchasing Effective Date Page 4 of 4 V Single Source Purchases / Waiver of Bidding A If it is determined that only one company is available or capable of providing the desired goods or services, the purchase may be approved without obtaining price quotes (purchases of $501 to $10,000), conducting formal bidding (purchases over $10,000), or utilizing an RFP°process (professional services over $10,000), provided that approval is received for the single source purchase, as follows 1 Purchases with a value of $501 - $10,000 Memo explaining the basis for the single source purchase must be submitted by the applicable Department Head along with the Purchase Requisition and approved by the City Manager 2 Purchases with a value greater than $10,000 Approval for the single source purchase must be submitted via a staff report in conjunction with the contract award and approved by the City Council B If a purchase is not considered to be single source but a waiver of bidding/competitive selection is requested because it is in the best interest of the City, approvals must be obtained by the City Manager ($501 - $10,000) or City Council (over $10,000) as described above VI Contract Reauirements A If a purchase involves work to be performed on City premises or the public right of way, regardless of the dollar amount, a City contract is recommended to adequately address liability issues If there is uncertainty regarding whether or not a contract is needed for a given purchase, the City Attorney should be consulted B Contracts up to $10,000 in value may be approved by the City Manager, following City Attorney approval as to legal form Whenever possible, the standard City contract form should be used C Contracts over $10,000 in value require City Council approval via the agenda process D Contracts should include a requirement for the service provider to obtain a City Business License The department administering the contract is responsible for coordinating with Finance to ensure that a Business License is obtained if the contract value is $10,000 or less (City Manager approval) If the contract value is greater than $10,000 (City Council approval), the City Clerk's Office will coordinate with Finance to ensure that a Business License is obtained E The department administering the contract is also responsible for obtaining the insurance certificates from the service provider and verifying that the coverage conforms to the contract requirements if the contract value is $10,000 or less (City Manager approval) If the contract value is greater than $10,000 (City Council approval), the City Clerk's Office will be responsible for obtaining the insurance certificates from the service provider and verifying that the coverage conforms to the contract requirements U) d 0 IL M V fA LL v- 0 0 a a v M !" ui 0 IV 0 Ni d 2 0 a W 0 Ln LL r c d E 0 0 a 41 Packet Pg 73 7Aa City of Grand Terrace Policy No 3 02 Fiscal Policy Subject Budget Appropriation Adjustments Effective Date Page 2 of 3 B Type B New or increased appropriations with offsetting revenues, no net budgetary impact 1 The City Manager is authorized to approve such appropriations 2 This type of appropriation adjustment shall require the following approvals Requestor Program Supervisor/Manager Approval Department Head Approval Finance Director Approval City Manager or designee C Type C Transfers of budget amounts between operating programs in different funds and/or departments, regardless of fund, shall require the following approvals 1 The City Manager is authorized to approve such appropriations 2 This type of appropriation adjustment shall require the following approvals Requestor Program Supervisor/Manager Approval Department Head Approval Finance Director Approval City Manager or designee, D Type D Transfer of budget amounts between Capital Improvement Plan (CIP) projects, regardless of fund, shall require the following approvals 1 The City Manager is authorized to approve such appropriations 2 This type of appropriation adjustment shall require the following approvals Requestor Program Supervisor/Manager Approval Department Head Approval Finance Director t Approval City Manager or designee E Type E Transfer of budget amounts from one division, program, or object code to another within the same fund and department shall require the following approvals 1 The Finance Director is authorized to approve such appropriations 2 This type of appropriation adjustment shall require the following approvals Requestor Program Supervisor/Manager Approval Department Head Approval Finance Director III Request Procedures Requests for Budget Appropriation Adjustments shall be completed on the authorized BAA Form (Exhibit A) 43 Packet Pg 75 EXHIBIT A - City of Grand Terrace Budget Appropriation Adjustment (B 7Aa Date Department Cost Center Type of Adjustment 0 A) New/Additional Appropriations (Expense) from Reserves/Fund Balance Required Signatures 1 Requestor 2 Dept Head 3 Finance Dept 5 City Manager 6 City Council 0 B) New/Additional Appropriations (Expense) with offsetting Revenue (no net budgetary impact) Required Signatures 1 Requestor 2 Dept Head 3 Finance Dept 5 City Manager 6 City Council 0 C) Transfers between Funds Et Departments (Inter fund/Inter Departmental Transfers) Required Signatures 1 Requestor 2 Dept Head 3 Finance Dept 5 City Manager 0 D) Transfers between Capital Improvement Program (CIP) projects within the same fund (no net budgetary impact) Required Signatures 1 Requestor 2 Dept Head 3 Finance Dept 5 City Manager 0 E) Transfers between Cost Centers within the same Department Ft Fund (no net budgetary impact) Required Signatures 1 Requestor 2 Dept Head 3 Finance Dept Revenue Council Action Date Council Action No Y_ Current Increase/ Revised/ Jus if{cation/Reaso for GL Account No Account Descr ption Budge (Decreaze) Budget Budget Appropriation Adjust en 000. 000 TOTAL 000 0 00 1 000 Exnense GL Account No Aeeount Description Curront1111111111increasel Budget Revised/ (Decrease Budget Justification/Reason for Budget Appropriation AMustmen 000 a v - L 000 000 000 000 000 000 000 000 TOTAL 0001 0001 0 00 Transfer OUT (From) GL Account No Acco nt Description Current Increase/ Revised Justification/Reason fbr Budget (Deerease) Budget Budget Appropriation Adjustment 0001 TOTAL 0001 0001 0001 Transfer IN (To) Current Increase/ Revis d/ Justif{cat{on/Reason fo GL Account No Accoun Description Bu get (Decrease) Budget BOdg2lLAppropLiatj0j-nTAdigstmeiit 000 0001 TOTAL 0001 0001 Prepared by Requestor Authorization Department Head Approval as to Funds Finance Department '----'Authonzation City Manager Extension Date Extension Date Extension Date Extension Date Note For Type A adjustments, please attach minutes from the City Council meeting to provide documentation of City Council approval Signature by the Mayor on the BAA Form is not required 45 BAA .1. viRaiPWA.M.77 N d _v O a v Ul LL 4- 0 O L rL rL Q M an CD tt CD NI N d C� O I1 itl V N LL w C d E z c� Q 7Aa City of Grand Terrace Policy No 3 03 Fiscal Policy Subject Travel & Related Business Expenses Effective Date Page 2 of 10 a When using air travel, employees should always book flights in coach as opposed to first class b Although the Internet offers numerous specials and low-priced flights, flexibility is often sacrificed and sales are often final Employees should consider this when booking their flights and can be held personally accountable if a flight is booked incorrectly, costing the City money To provide more flexibility, designated travel agencies should be used c When choosing a hotel for a conference, it is preferable to stay at the hotel where the conference is being held even though it may be slightly more expensive than others in the area J 2 It is permissible to combine personal travel with business travel, such as departing for a business conference a few days early to utilize personal vacation time But only strictly business -related expenses will be advanced or reimbursed and personal travel shall not result in higher business travel costs or they must be reimbursed to the City D Policy is Not Intended to be All Inclusive 1 This -policy is not intended to address every issue, exception or contingency that<`may arise in the course of City travel or attendance at meetings 2 Accordingly, the basic standard that should always prevail is to use good judgment and economy in the use and stewardship of City funds II Travel Authorization & Expense Reporting Form ("Travel Form") A Travel Authorization 1 Travel Authorization approval by Department Head and City Manager is required whenever a Total estimated cost will exceed $200, or b Overnight accommodations will be required 2 Department Head authorization is acceptable for employee travel that is estimated at $200 or less and does not involve overnight accommodations 3 Travel Restrictions a Out-of-state travel authorizations require approval by the City Manager (or his/her designee) b Department Head travel authorizations require approval of the City Manager (or his designee) ql d 2 0 a �o N LL 4- 0 Z 0 a a M to Co 0 NI fA d C1 O d m N ILL C d E 47 Packet Pg 79771 7Aa, City of Grand Terrace Policy No 3 03 Fiscal Policy Subject Travel & Related Business Expenses Effective Date Pa e4of10 3) Attach completed and signed Direct Pay Request forms for all travel -related payment requests a) Include the appropriate authorization signatures b) Retain a copy of the completed form to reconcile and account for actual expenses upon return from trip c) Submit the Travel Form and any Direct Pay Request forms to the Accounts Payable section of the Finance Department 5 Per Diem (Meals and Incidentals) a Meals and incidentals, as defined by Internal Revenue Service (IRS) guidelines, include all meals and miscellaneous hotel services, such as -tips to waiters and porters Per Diem will be paid at the current rates established by IRS guidelines determined by the minimum federal per diem rate table for the City's region All IRS tax rules will apply b By IRS regulations, per diem is defined as travel subsistence extending beyond one day and there is no requirement to provide receipts r _ However, for one day or partial days of travel, meals expense receipts ( rare required and the standard one day, non -per diem meal allowance will u f '-'be $45 allocated as follows Breakfast $ 8 00 Lunch $12 00 Dinner $25 00 If an employee is advanced money for one -day or partial day meals and the total amount of all receipts is less than the amount advanced, the difference must be reimbursed to the City Conversely, if the employee exceeds the total one -day or partial day standard non -per diem meal allowance and is requesting reimbursement, receipts MUST be provided and reimbursement shall be at the discretion of the Finance Director based on the circumstances c As a general rule, employees are expected to base their requests for daily meals and incidentals according to the federal per diem rates d As an alternative, an employee can elect not to receive per diem and request reimbursement of actual, reasonable and allowable subsistence expenses that are substantiated with receipts This alternative must be approved in advance and receipts must accompany the request for reimbursement However, a combination of per diem and reimbursement of meals and incidental business expenses is prohibited 1 N d 0 a �a fA LL 0 0 a a g CO to 0 0 C41 flJ d 0 o. N U. c d E s Q 49 7 Packet Pg 81 �7Aa City of Grand Terrace Policy No 3 03 Fiscal Policy Subject Travel & Related Business Expenses Effective Date Page 6 of 10 means of transportation, or the actual mileage involved in the travel, whichever is the lesser of the two The reimbursed mileage rate for use of a private vehicle for City travel will be at the current Standard Federal Mileage Rate set by the IRS Mileage reimbursement for a private vehicle being used for City travel must consider the employee's normal commute to work and whether the employee receives a monthly vehicle allowance If the employee does not receive a vehicle allowance, the employee is entitled to reimbursement for all business miles driven, with the following exceptions 1) If travel begins and ends at work, the entire business mileage will be reimbursed 2) If travel begins at work and ends at home (or vice versa), and if the total business mileage driven is less than the total mileage that would have been driven if travel began and ended at work, the total mileage can be claimed (Example John Doe lives in Banning and is attending a morning conference in Los Angeles The trip from - Banning to Los Angeles -is 75 miles, but is only 60 miles from Grand Terrace to Los Angeles Since his normal commute would bring him to Grand Terrace and 10 miles closer, in this cage John would be reimbursed 120 miles, the round-trip distance from City Hall) 3) If travel begins at home and ends at home, and if the total business mileage driven is less than the total mileage that would have been driven if travel began and ended at work, the total mileage can be claimed (Example Jane Doe lives in Banning and is attending a conference in Palm Springs The round-trip mileage from her house is 120 miles, but would have been 130 miles had she started at and returned to the Grand Terrace City Hall In this case Jane would be reimbursed for the 120-mile round trip) 4) Under no circumstances shall reimbursement be given to the total business mileage claimed that exceeds the total mileage had the travel begun and ended at work h If an employee already receives a monthly vehicle allowance, a total of 50 miles must be deducted for each one-way travel to or from the authorized City business travel destination The mileage exceeding a 50-mile radius is subject to reimbursement, however, the first 50 miles each way is considered applicable to the employee's vehicle allowance The above four rules shall also apply H d t� 0 a fA LL 4- 0 �a 0 a Q. a v M LO 0 0 NI N d v O IL �a N LL c d E s 0 0 6 51 Packet Pg 83 7Aa City of Grand Terrace Policy No 3 03 Fiscal Policy Subject Travel & Related Business Expenses Effective Date Pa e8of10 8 Compensation for Travel Time (Non -Exempt Employees) a When travel time exceeds the normal workday or workweek, the City's rules for overtime apply to those employees eligible for overtime b In determining overtime compensation, normal commute time should be deducted from total travel time c Normal unpaid meal periods are not considered work time while traveling d Overtime eligibility applies equally to drivers and passengers, and should be granted whether travel occurs during normal workdays or on weekends or evenings 9 Lodging a Lodging is allowed for attendance at conferences, seminars or meetings that are in excess of 50 miles or one hour of travel time, one-way, from the employee's home The City Manager may approve exceptions to the 50-mile/one hour minimum if he/she considers the request to be reasonable and practical, especially considering the destination, the ` `''difficulty of the commute, and the starting time of the conference' b Reasonable lodging expenses will be paid at actual cost including taxes and parking, for as many nights as necessary c The lodging accommodations should be economical and practical In general, the employee should select the most reasonably priced accommodations available, but consistent with the purpose and goals of the trip d When choosing a hotel for a conference, it is preferable to stay at the hotel where the conference is being held even though it may be slightly more expensive than others in the area, in order to reduce transportation expenses such as cab fares e Other non -business related room charges, including movies or refreshments are not reimbursable f When making lodging reservations, be sure to ask if a "government rate" is available Some cities exempt travelers on government business from their local transient occupancy tax (TOT) This can represent as much as a 12%-15% savings on lodging costs depending on the TOT rate Check with the hotel for this exemption and form g Since there is seldom a difference in the room rate for double 1 occupancy, it is permissible for an employee to share a room with a 53 Packet Pg 85 ,7Aa City of Grand Terrace Policy No 3 03 Fiscal Policy Subject Travel & Related Business Expenses Effective Date Page 10 of 10 Head Travel Expense Reports must be approved by the City Manager City, Manager Travel Expense Reports must be approved by the Finance Director and Mayor 2 A Travel Expense Report is required in all cases — there are no exceptions This is mandatory whether or not the advance received is equal to the expenses incurred, whether the employee is eligible for additional reimbursement, or whether money is owed to the City 3 If the employee owes the City for the unused balance of a cash advance (other than per diem), he/she should pay the amount due to the Finance Department cashier and attach the receipt to his Travel Expense Report The amount returned to the City must be applied as a credit to the expense account originally used for the cash advance 4 Supervisors and Department Heads approving Travel Expense Reports are responsible for ensuring that a All expenses are reasonable, necessary and consistent with this policy, b Any required receipts are attached, c M The final disposition is correct (balance due employee, or balance due City) C3 d Any amounts due to the City are fully reimbursed, and e Final accounting of all expenses related to the trip is submitted to the Finance Department within 15 workdays following the employee's completed travel 5 If the City owes the employee money, the employee may request reimbursement by forwarding the Travel Expense Report to the Finance Department along with a Request for Payment If the amount requested is $100 or less, a Petty Cash Request may be submitted for reimbursement Requests for reimbursement will be processed on the next available Accounts Payable check run, if submitted by the normal Accounts Payable deadline, but no later than 10 workdays following receipt Requests for reimbursement by petty cash will be reimbursed per the City's Petty Cash & Change Boxes Policy (Fiscal Policy No 1 02) 6 If the employee owes the City money, he/she should attach a check to the Travel Expense Report d 2 0 IL N_ ILL 4- 0 �s 0 L Q a a v M LO O T 0 Nf d 0 a NN ILL w c d E z a 55 Packet Pg 87 7Aa City of Grand Terrace Policy No 3 04 Fiscal Policy Subject Grants Effective Date Page 1 of 5 PURPOSE To clarify, standardize and identify the benefits of seeking potential grants and the process to properly manage and maximize the use of grants GOALS To seek grant funding that will enhance, support and provide additional services to the City, which will clearly provide a positive benefit to the community or needed infrastructure improvements that may not be provided at adequate levels due to limited City revenues POLICY To perform cost/benefit analysis of a grant request and to identify potential financial impacts relating to costs associated with the hiring of new personnel, equipment and technology and other related costs during the term of grant and after expiration of grant Pre -Application Process — Review of Grant/Grant Proposal Information Form A Upon notification of a potential grant, the City Manager shall assign it to the applicable department A department that receives direct notification of a grant opportunity may also initiate the grant application process after notifying and receiving concurrence from the City Manager's office The department shall designate a Grant Project Manager to identify and review potential grant sources, obtain grant application materials and :related regulations This process is not applica`Ble for ongoing direct allocation grants such as the Community Development Block Grant (CDBG) program Sections II, IV and V of the Grant Policy shall not apply to potential grants of less than $25,000 which the Grant Project Manager determines have matching or administrative requirements which can be handled within the approved City budget and current staffing resources Federal Grants identify all requirements needed prior to and after approval of grant such as public hearings, notification of public clearinghouse, advisory boards, lobbying efforts, monitoring/audits and type of reporting requirements Address issues dealing with supplanting of local funds which restrict funding or existing staff/technology and limit funding to only new hires and new technology 2 State Grants identify state requirements including mandatory quarterly/annual reports and monitoring 3 The annual CDBG entitlement process is not addressed in this policy because the procedures and regulations are outlined under 24 CFR Part 570 Individual projects funded under CDBG shall be applicable to certain provisions of this policy relating to Federal grants II Completion of Grant Proposal Information Form & Cost/Benefit Worksheet A Based on information obtained, the Grant Project Manager shall complete the Grant Proposal Information Form (Exhibit A) and Grant Cost/Benefit Worksheet (Exhibit B) The grant funding identified in Exhibit B should be based on a five - .1 ►; WA Packet Pg 89 7Aa City of Grand Terrace Policy No 3 04 Fiscal Policy Subject Grants Effective Date Page 3 of 5 2 Verify the source and amount of the required local match for term of grant Ensure that all direct costs or in -kind services are identified and included in the grant as eligible expenses or City matching funds to the extent possible IV City Council Review A A City Council staff report describing and justifying the benefits of the grant application request shall be presented to the Council prior to grant submittal In the event of agenda scheduling conflicts due to untimely notification by funding agency of grant deadline, the City Council shall be advised by memo (or other communication such as the City Manager's Report) of the grant submittal A staff report shall be submitted after grant award notification requesting acceptance of grant award B Complete resolution for City Council approval if required by grant V Finance Director/City Manager Review A The completed grant application shall be reviewed by the Finance Director and City Manager (or designee) prior to submittal 1 Review completed grant proposal and staff report to evaluate cost/benefit of receiving administering grant, assure consistency with program goals and identification of personnel, equipment, Jechnology and other related costs 2 Verify all costs associated with the grant are identified and fully accounted for throughout the term of the grant 3 The City Manager (or designee) shall have the exclusive authority to execute grant agreements, to sign financial reports and grant applications VI Grant Award Notification A Upon notification of award the Grant Project Manager shall take the following steps Prepare a staff report to City Council for acceptance of grant award, if the City Council had not previously approved the grant application The staff report must include a Budget Appropriation Adjustment Form to record grant revenues and expenditures, as further defined in Fiscal Policy No 3 03 (Budget Appropriation Adjustments) Coordinate with Finance to establish/set up fund accounts for grant, if necessary d 0 IL fA LL 4- 0 �a 0 c. a Q v M LO 0 0 Ni d 0 a e� N LL c d E s ca Q 59 ' Packet Pg 91 ' 7Aa City of Grand Terrace Policy No 3 04 Fiscal Policy Subject Grants Effective Date Page 5 of 5 VII Grant Expiration/Project Completion A The Grant Project Manager and assigned department shall notify other departments of project completion 1 Review departmental grant file for completeness of all required documentation and mandatory reports Complete final assessment report if required 2 Retain records for the required time period 3 Participate in grant audit or monitoring 4 Prepare News Release regarding completion of project if appropriate 5 Schedule and attend grant close-out meetings (construction projects) r„r c c 61 Packet Pg 93 7Aa 4 Identify Grant Project Manager and other departments/staff who will be responsible for implementing the grant and providing project oversight 5 List procedural requirements for grant such as public hearing, advisory board setup, Davis Bacon, environmental reviews, etc and describe any potentially costly monitoring or compliance issues 6 Identify required reports (quarterly, semi-annual, annual) to be completed after grant award and what department/staff would be assigned reporting requirements r� j 7 Describe the cost/benefit aspects of the grant 8 Complete Attachment B — Grant Cost/Benefit Worksheet 63 Packet Pg 95 7Aa City of Grand Terrace Policy, No 3 05 Fiscal Policy Subject Donations Effective Date Page 1 of 4 PURPOSE To establish policy and procedures for the solicitation and/or acceptance of donations made to or for the City A uniform set of procedures shall be followed in the acceptance of all donations Proper approval shall be obtained prior to acceptance All cash and capital goods donated to the City shall be accounted for in accordance with the procedures set forth within this policy DEFINITIONS Donor An individual, organization or business entity that is offering a monitory contribution, personal property or real property to the City as a gift Gifts For purposes of this policy, the terms gift and donation shall be synonymous Gifts may be a monetary contribution or a personal and real property item which the City has accepted, and for which the donor has not received anything of value in return from the City other than a tax benefit Included within the scope of this policy are donations whereby a private business sponsors or co-sponsors an event on behalf of or in partnership with the City POLICY Legal Basis A (Ref Government Code, Section 37354, Gifts and Bequests ) The City Council, or its designated representative, may accept or reject any gift made to or by the City for any public purpose The City may utilize the gift as prescribed by the donor or, providing use of the gift or the income from it is not restricted, the gift may be used for any purpose that furthers City goals and objectives as stated at the time of acceptance B (Ref California Code of Regulations, Section 18944 2) A gift will be deemed a gift to a public agency, and not a gift to a public official, if all of the following requirements are met (a) the agency receives and controls the payment, (b) the payment is used for official agency business, (c) the agency determines the specific official or officials who shall use the payment, and (d) the agency memorializes the payment in a written public record and the filing is done within 30 days of receipt of the payment by the agency II Donations to the City A Responsibility Donations with an estimated value of $5,000 or less may be authorized by the City Manager Donations with an estimated value exceeding $5,000 must be approved by City Council The Finance Director shall be responsible for managing all donations of cash and for the accounting and inventory of all donated items N d V O a �a N LL 4- 0 0 a a co V- Ln O 0 N' 0 d 0 IL e� N LL c 0 E �o L 65 Packet Pg 97 r 7Aa City of Grand Terrace Fiscal Policy Policy No 3 05 Subject Donations Effective Date Page 3 of 4 5 Is required accounting of acceptance or use of the item excessively burdensome? 6 Would the item require extensive repair or maintenance, and if so, are City means readily available to do so? 7 Does use of the item require the purchase of additional material or equipment to serve the purpose of the gift? 8 Would acceptance of the item present a conflict of interest for the City or any of its employees? Regardless of the value of the donation, if the donor is a contractor, potential contractor or there is reason to believe there may be a conflict of interest, then the offer shall be referred to the City Manager who will determine if the gift will be accepted, rejected or submitted to the City Council for approval III Procedures A Non -monetary -gifts valued at $5,000 or less Any single donation whose total value, as determined by the donor, is $5,000 or less 1 A Donation Receipt Form (Exhibit A) will be completed when donations are received, with the form completed by City staff 2 The City will not place any value on the gift for the donor The donor shall provide proof of current market value If real property is donated, a current appraisal report will be required 3 The City Manager will promptly acknowledge each gift by letter, thanking the donor for the gift 4 The Finance Director shall be notified of the acceptance of any capital asset Finance shall make the necessary entries on the respective accounts and property records to ensure that the property is recorded to the account of the proper City program This reporting must take place no later than 30 days after the receipt of the donated item B Non -monetary -gifts valued at more than $5,000 1 Any gift valued at more than $5,000, as determined by the donor, cannot be accepted without City Council approval Subsequent to Council's acceptance, procedures for acceptance of gifts in excess of $5,000 shall be the same as those in Section A above C Cash Gifts 1 Depositing Cash Gifts All cash gifts shall be deposited immediately with the Finance Department in accordance with the City's Cash Handling & j Control Policy (Fiscal Policy No 1 01) and shall be accompanied by a 67 PacketFPg 99 ' 7Aa s , EXHIBIT A DONATION RECEIPT FORM Date Donor Telephone ( ) Address City DONATION DESCRIPTION CASH CHECK (amount) Description (be specific) UNRESTRICTED JRESTRICTED (identify restrictions) State (amount) Total estimated value (estimated by Donor) Received by Signature of City Employee/Department Donor Zip COMMODITY Date Date Signature ............................................................................................................................................ The donation was classified and handled in the following manner Item was issued a City I D number and is located at Item has short life span Not classed as a fixed asset Unrestricted cash or check deposited in General Fund, account number Restricted cash or check placed in General Fund, account number for use in Other (explain) Finance Director Date City Manager Date 69 Packet Pg 101 7 A'a City of Grand Terrace Fiscal Policy Policy No 3 06 Subject Reserves Approval Date 2/25/14 Page 2 of 2 a The City will strive to maintain a minimum fund balance in the Equipment Replacement Fund of at least the average annual replacement cost of the current items accounted for in this fund b Contributions to the Equipment Replacement Reserve will be made through annual depreciation charges in accordance with the City's Fixed Asset Policy 2 Reserves for Encumbrance and Continuing Appropriations will be established at the end of each fiscal year to reserve fund balance in the amount equal to the City's unpaid obligations at fiscal year-end 3 Reserve levels for Debt Service Funds shall be established as prescribed by the applicable bond covenants adopted at the time of the issuance of debt 4 Other reserves, such as for cash flow or capital needs, will be reviewed and established each fiscal year as needed D Use of and Replenishment of General Fund Contingency Reserve The General Fund Contingency Reserve is intended to act as a buffer to protect service levels during difficult economic times or as a result of catastrophic events that require significant unanticipated expenditures 2 During such times, or as a result of such events, the General Fund Contingency Reserve may decline below the target level (two months of operating revenues), with City Council authorization Once the difficult fiscal times pass, the General Fund Contingency Reserve will be replenished to its target level as soon as funding permits, as determined by the City Council through the annual budget process 3 Appropriate sources for replenishment of the General Fund Contingency Reserve include one-time revenues and other sources not necessary to support�ongoing services E Policy Versus Appropriation of Reserves This policy establishes target reserve levels for the prudent financial management of the City However, specific appropriation of funds into the various reserve accounts will be subject to the annual budget adoption process or other City Council budgetary action N d 0 IL LL 4- 0 0 a a a M r Ln 0 0 N� NN d 0 IL N LL c d E M ca a 71 Packet P,g 103 ,7Aa City of Grand Terrace Policy No 3 07 Fiscal Policy Subject Unclaimed Money Approval Date. 1/14114 Page 2 of 3 2 The Finance Department will then publish a notice (Exhibit A) identifying all such money in a local newspaper of general circulation once a week for two successive weeks The notice shall state the payee name, fund in which it is held, the amount of money, and that the money will become City property forty-five (45) days after the first publication of the notice Proof of publication will be retained in the Finance Department B Claims filed by Party of Interest 1 Upon or prior to publication and before the date the Unclaimed Money becomes City property, a party of interest may submit an Unclaimed Money Claim Form (Exhibit B) with the Finance Department to collect money The Finance Department will require proof of identification from the claimant Once a decision is rendered by the Finance Department, notification will be made to the claimant by letter 2 Upon acceptance, the Finance Department will proceed as follows a Accounts Payable will reissue check to the owner, their heir, beneficiary, or duly appointed representative, following accounts payable policies and procedures r b ° The Finance Department will remove the check from the last of ` Unclaimed Money to be escheated 3 If denied, the claimant may file a verified complaint seeking to recover all, or a designated part, of the money in a court of competent jurisdiction within ill San Bernardino County, and must serve a copy of the complaint and the summons issues thereon upon the Finance Department The copy of the a complaint and summons shall be served within 30 days of receiving notice cc that the claim was denied The Finance Department shall withhold the H release of the portion of Unclaimed Money for which a court action has U- been filed until a decision is rendered by the court d E 4 If the court renders a decision in favor of the claimant, the Finance Department will follow the acceptance procedures identified in this policy to issue the check a 5 If the court renders a decision in favor of the City, the Finance Department will proceed as follows a Accounting will reverse the Unclaimed Money liability and record the revenue b Accounting will record the transfer of escheated special fund cash to the General Fund, unless otherwise restricted c Any escheated money related to Agency/Trust funds will revert to the ( ~' appropriate originating fund and not the General Fund 73 Packet,, Pg 1075 ] 7Aa EXHIBIT A CITY OF GRAND TERRACE UNCLAIMED MONEY SAMPLE PUBLIC NOTICE NOTICE IS HEREBY GIVEN pursuant to Government Code Sections 50050 through 50056 that the following money, which is not the property of the City of Grand Terrace, has remained in the City treasury for more than three (3) years and will become City property if not claimed by August 14, 20XX FUND PAYEE NAME AMOUNT The owner/depositor, their heir, beneficiary or duly appointed representative may file a claim requesting release of money with the City of Grand Terrace's Finance Department, which must ' include the claimant's, name, address, telephone number, Employer Identification Number or Social Security Number, amount of claim, and the grounds on which the claim is founded before August 14, 20XX If the claim is denied by the City, the claimant may file a verified complaint seeking to recover all, or a designated part, of the money in a court of competent jurisdiction within San Bernardino County, and must serve a copy of the complaint and the summons issues thereon upon the Finance Department within thirty (30) days of receiving notice that the claim was denied The Unclaimed Money - Claim Form is available at the City of Grand Terrace, Finance Department, 22795 Barton Road, Grand Terrace, CA N d 2 O M c0 v N LL 4- O R O Q. Q. a M 0 0 NI N d 2 0 a �u N LL r c d E V W Q 75 Packet Pg 1077 E N AG DA REPORT METING DATE May 13, 2014 Council Item TITLE Resetting of the Proposition 218 Public Hearing for Proposed City of Grand Terrace New Sewer Rates PRESENTED BY Emily Wong, Interim Assistant City Manager RECOMMENDATION (1) Rescind the Proposition 218 Public Hearing scheduled for June 10, 2014 at 6 00 p m , (2 ) Reset the Proposition 218 Public Hearing for proposed new sewer rates on July 8, 2014 at 6 00 p m , and (3) authorize staff to give proper notice BACKGROUND On March 11, 2014, the City of Grand Terrace approved a Settlement Agreement and Release, a Sewer Services Agreement and a Lease Agreement between the City of Grand Terrace and the City of Colton As a result, the City of Colton will be operating and maintaining the City of Grand Terrace wastewater collection system and sewer services in the future As has been previously reported, approval of these agreements } by Grand Terrace and Colton will result in customers in both cities paying the same monthly sewer rates going forward On March 18, 2014, the City Council of the City of Colton unanimously approved the Settlement Agreement and Release, Sewer Services Agreement and the Lease Agreement between Colton and Grand Terrace Colton will be conducting its Proposition 218 Public Hearing on June 3, 2014 DISCUSSION On April 22, 2014, the City Council of the City of Grand Terrace (1) Received and filed the Rate Payer Study provided by the City of Colton and (2) Set the Proposition 218 Public Hearing for proposed new sewer rates on June 10, 2014 A public notice was published with the appropriate date and place, and both the public notice and information regarding sewer rates were mailed out to all rate payers in Grand Terrace Unfortunately, due to a typographical omission, the regularly scheduled time of 6 00 p m was inadvertently omitted from the public notice In order to ensure that all affected rate payers are aware of the exact time of the scheduled public hearing, staff recommends the City Council set a new date certain for the required Proposition 218 Public Hearing proposed new sewer rates and authorize staff to give proper notice Copies of the Sewer Rate Study and the Notice of Public Hearing detailing the proposed Packet Pg 109 76a CITY OF GRAND TERRACE ( NOTICE OF PUBLIC HEARING REGARDING PROPOSED RATE INCREASES TO WASTEWATER SERVICE FEES NOTICE IS HEREBY GIVEN THAT the City Council of the City of Grand Terrace (Grand Terrace) will hold a public hearing at 6 00 p in on July 8, 2014 at City Hall, located at Grand Terrace Civic Center, 22795 Barton Road, Grand Terrace, CA 92313, to consider proposed increases to the rates for its wastewater service fees The reasons for the proposed increases and the rates to be imposed are described below Reasons for the Proposed Increases in the Rates of the Wastewater Service Fees Grand Terrace has entered into an agreement with the City of Colton (Colton) to have Colton provide wastewater services to properties located within Grand Terrace These services include, but are not limited to, operating and maintaining Grand Terrace's wastewater system and collecting, treating, and disposing sewage discharged by properties located within Grand Terrace Grand Terrace, in conjunction with Colton, is committed to providing the highest quality services at the lowest possible rates for our customers To meet this commitment, Colton undertook an evaluation of the costs of providing these wastewater services and the rates that are necessary to recover its costs Based on this evaluation, Colton has determined that in the fiscal year beginning July 1, 2014, the rates for the wastewater service fees it imposes on Grand Terrace will need to be increased Future rate increases also will be necessary to recover projected costs of providing wastewater services and to ensure that Colton can safely collect, treat and dispose of Grand Terrace sewage, maintain the operational and financial stability of its wastewater utility, and avoid operational deficits and depletion of reserves Grand Terrace is proposing to pass through to its wastewater customers these rate increases As described below, the proposed rates for the monthly wastewater service fees are structured to recover the cost to collect, treat, and dispose of Grand Terrace sewage and proportionately allocate those costs among the various customer classes Proposed Rates The rates for the wastewater service fees are comprised of four customer classes — (1) residential (which includes single-family residences, mobile homes, and churches), (2) multi -family (which includes apartment units and condominiums), (3) schools, and (4) commercial and industrial The rates for the monthly wastewater service fees for residential and multi -family properties are determined on an equivalent dwelling unit (EDU) basis The number of EDU's assigned to a property is based on the estimated sewer flow it generates For residential property, one EDU equals approximately 225 gallons of estimated discharge per day Multi -family customers are assigned 87 EDU's based on their estimated discharge The rates for schools are determined on the basis of the estimated sewer flow generated at an identified school in terms of the number of students attendmg (in hundreds) The rates for commercial and industrial customers are determined on the basis of the estimated sewer flow a property contributes to the wastewater system (using monthly metered water use data) and the loads that a customer's sewage discharges put on the system (based on its commercial or industrial wastewater discharge permit) l� Packet Pg 111 7Ba � Fy Public Hearing and Protests ; 1� The record owner of any parcel upon which the wastewater service fees are proposed to be imposed and any tenant directly responsible for the payment of wastewater service fees (i e , a customer of record) may submit a written protest to the proposed rate increases, provided, however, only one protest will be counted per identified parcel Any written protest must (1) state the protest is being submitted in opposition to the proposed rate increases, (2) provide the location of the identified parcel (by assessor's parcel number or street address), and (3) include the name and signature of the record owner or tenant submitting the protest Written protests may be mailed or submitted in person to the City Clerk at 22795 Barton Road, Grand Terrace, CA 92313, or at the Public Hearing to be held on July 8, 2014 All written protests must be received by the City prior to the close of the Public Hearing, which will occur when public testimony on the proposed rates is concluded Any protest submitted via e-mail or other electronic means will not qualify as a written protest Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the City Clerk, that the enclosed protest is for the Public Hearing on the Proposed Wastewater Service Fees The City Council will hear and consider all written and oral protests to the proposed rate increases at the Public Hearing Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written protest Upon the conclusion of the Public Hearing, the City Council will consider adoption of the proposed rates for the wastewater service fees described in this Notice If written protests against the proposed rate increases as outlined above are not presented by a majority of the record owners of parcels upon which the wastewater service fees are proposed to be imposed t and tenants directly responsible for the payment of wastewater service fees, the City Council will be authorized to impose the proposed rate increases For further details regarding the bases and reasons for the proposed rate increases, or for any questions you may have regarding your customer classification, the number of EDU's assigned to your parcel, or the rates proposed to be imposed on your parcel, please contact City Hall at (909) 824-6621 Q Packet Pg 113 ,7Bb TABLE 2 RESERVE FUND SUMMARY kMMARY OFACTIVITY .. FY 201i IiiI 1 1 1 I Total Beginning Cash (1) Is 6,610,557 Operating Beginning Reserve Balance (2) Plus Net Cash Flow (After Rate Increases) Plus Transfer of Debt Reserve Surplus Plus Transfer from/Use of Rate Stabilization Reserve Less Transfer Out to Capital Replacement Reserve Less Transfer Out to Rate Stabilization Reserve $ 3 185 420 460 779 13 542 (1 992 741) $ 1,667 000 1214114 1 032 - (1 056 146) 300 000 $ 1 526 000 441 906 2063 (115 970) $ 1 854 000 788 519 4 794 - (767 313) $ 1 880 000 470 409 6 906 - (445 315) - $ 1 912 000 534,480 14 591 (521 071) Ending O erat►n Reserve Balance $ 1667 000 $ 1526 000 $ 1,854 000 $' 1880 000 1 $ 1912 000 $ 1940,000 Target Ending Balance (90 days of O&M) 1 $ 1 667 000 $ 1826 000 $ 1 854 000 $ 1 880 000 $ 1912 000 $ 1940 000 Beginning Reserve Balance (2) Plus Grant Proceeds Plus Transfer of Operating Reserve Surplus Less Use of Reserves for Capital Projects 1992741 ;;3 000 000 $ 4 342 741 1 056 146 2 385 789 $ 3 013 098 115 970 804 972 $ 2 324 096 - 767 313 - $ 3 091 409 - 445 315 - $ 3 536 724 - 521 071 941 745 EndingCapital Improvement & Depreciation Reserve Balance 741 $ 3 013 098 $ 2,324,096 $ 3,091409 $ 3,536,724 $ 3116 049 Tar et Endm Balance 3% ofAssets 3 600 $ 1 131 200 $ 1 120 700 $ 1 156 600 $ 1 168 800 $ 1248 400 Beginning Reserve Balance Plus Transfers from Operating Reserve Less Use of Reserve/Transfer to Operating Reserve $ - $ - 300 000 $ 300 000 - $ 300 000 $ 300 000 - $ 300 000 - Endm Rate Stabilization Reserve Balance $ - $ 300,000 $ 300,000 $ 300 000 $ , 300 000 $ 300 000 Tar et Endin Balance $ 300,000 $ 300,000 $ 300,000 $ 300 000 $ 300,000 $ 300 000 � .. 1 11 In". I I I 1 11 I 11 1 11 1 11 lus/Deficit Com aced to Reserve Tar ets $ 3 038141 $ 1581898 $ 1203 396 $ 1934809 $ 2 367924 $ 1867649 rr ReservesReserve Balance L, Plus Lease Purchase Financing Proceeds Plus Revenue Bond Proceeds Less Use of Bond & Loan Funds for Capital Projects $ - - - $ - - 3 000 000 3 000 000 $ - - - $ - 7 000 000 2 390 660 $ 4 609 340 - 1 612 750 $ 2 996 590 - - 2 996 590 Endin-a Bond Project Fund Balance $ - $ - $ - $ „ 4 609 340 $ 2 996 590 $ Tar et Endm Balance $ $ - $ - $ $ - $ Beginning Reserve Balance (5) -Plus Reserve Funding from New Debt Obligations Plus Interest Earnings Less Transfer of Surplus to Operating Reserve $ 425137 1 063 13 542 $ 412 658 - 1 032 1 032 $ 412 658 226 534 2063 2 063 $ 639191 - 4 794 4 794 $ 639191 528,578 6 392 6 906 $ 1 167 255 14 591 14 591 Endin-g Debt Reserve Balance $ 412,658 $ 412 658 $ 639191 $ 639191 $ 1167 255 $ 1167 255 Ta et Endin Balance $ 412 658 $ 412 658 $ 639191 $ 639191 $ 1,167,255 $ 1,167255 Connection Fee Reserve Beginning Reserve Balance Plus Interest Earnings Plus Capacity Fee Revenue (6) Less Use of Reserves for Capital Pro ects $ - - 5 600 $ 5 600 14 5 656 - $ 11 270 56 5 713 $ 17 039 128 5 784 - $ 22 951 230 5 871 $ 29 051 363 5 973 - Ending Connection Fee Fund Balance $ 5 600 $ 11270 1 17,039 $ .` ° 22,951 $ ,_' 29,051 $ 35 388 Annual Interest Earnings Rate (7) 0 25% 0 25% 05051. 0 75% 1 00% 1 25% Reserve Fund Summary Notes (1) From the Trial Balance Report as of June 30 2013 and is the sum of Cash in Banks $6 185 420 and Cash with Fiscal Agent $425 137 (2) The beginning Cash in Banks balances per the City's Trial Balance report as of June 30 2013 has been split between the Operating and Capital Reserves (3) The Capital Rehab & Replacement reserve target is set to 3% of net assets (4) Per the Official Statement for the 2000 Wastewater Bonds the City is required to maintain a rate stabilization reserve of $300 000 NBS assumes it wall be funded in the second year of the planning period for this study and will be held until the bonds mature in 2025 (5) The total cash with the Fiscal Agent of $425 137 per the City's Tnal Balance report as of July 1 2013 is the debt reserve fund (6) NBS assumes that capacity fee revenue in future years will be consistent with FY 2013114 estimates and the funds wall be available to spend on future capital projects (7) Historical interest earning rates were referenced on the California Treasurer's Office website for funds invested in LAIF Future years earnings were conservatively estimated through 2021 and phase into the historical 10 year average interest earnings rate Packet Pg 115 7Bfi of FY 2'014115 Revenue Requirements Customer Class Cost Classification Treatment ComponentsAllocation Customer Service Net • Revenue Volume •. TSS Related Revenue Require'ments Requirements' 7 43e. e.� _ $ 2,845 591 $ 980,940 $ 1 053 481 $ 433 334 $ 5,313,346 _ _62 0% _Residential Multi -Family Residential__ry_- _ $ 82 1 0542 $ _ �373µ177 $ 4773 00 $ 92 1034 a $ 23 9% _2,048,525 $ ~ 108,138 1 3% ~ __ Schools $ 78,527 $ 14,076_ $ 11629 $- 3,906 $ 112085 $ 11 904 $� 15,100 (Low)___ $ 359,642 4 2%_ __Commercial _ $ $ _321,553 _85120 121_824 _$ $ $ �23,474 167 983 $��25210 $ 108,243 $ 4,079 $ $ 137,884 402,364 16%- M 4 7% � _Commercial(Med ^� Commercial (High)__ _ $ _ 4 314 Special Commercial ` _ _Angelica $ 19,664 $ $ $ ^ 7,023 19 404 W146 $ 1,572 $ 32 $ 28,291 0 30X_� T Special Med Consumption $-,10,981 $ 157 Arrowhead Regional $ 42,131 $ 32 $ - 72,547 _ 0 8%_ _ McCain Foods $ 529 $ 32 $ 863 0 0% _ _ _ Foods �___ $ �1,354 $_ _ 373 $ _ 401_ $ _ w32 $ 2,160 _ _6 0%o _ _Telco _ Special H►gh Consumption $_ 12,124 Foods $ 21449 $ 10,126 $ 32 $ 43,730 -0 5% _McCain Telco Foods �^ $ 11,484 $ 24,940 $ 9,591 $ 32 $ 46,046 0 5% 1 Revenue requirement from each cost classification times the allocation factors for each customer class .. e Customer Class 11 • Residential _ _ 13_686 $ _5 313 346 $_ 3235 Multi -Fad Residential�v 6 065 $ 2,048 525 $ 2815 Schools' 1234 $ 108 138 $ 7304 Total%. 19,874 $:7,470,010 n 11 Customer billing data for FY 2013114 Indicates that there are 9,815 students at Colton I L C/ty Schools, 722 students at Rialto USD, and 1,800 students at Grand Terrace schools .- 1IIIIIIIIIIIIIIII.. Customer Class General Commercial Commercial Low __ _ 465 012 $ 359 642 _Commercial Med) �� -_Comercial _477 _ 129 123,096 $ 137 884 _ _ $1 12_ M_ m(Hi gh) 136 _ -� 176176 $ 402 364 $2 28 Special Commercial _ Angelica 1 _ 28 437 $ 28 291 $0 99 _ Arrowhead Regional___ T _ 1 -_ ^ _ 60 928 $ 72 547 $1 19 McCain Foods 1 765 $ 863 $1 13 Telco Foods _ _ _ _ _ _ _ 1 1958 $ 2,160 $1 10 _ S_peaa/ High Consumption $ 43 730 $2 49 McCain Foods _1 173 $ 46 046 $2 77 _ Telco Foods _ 1 16 607 Total 748 `890,512 $ 1,093,529 1 Collects volumetric charges based on monthly water consumption Effluent flows from Grand Terrace have been adjusted to reflect water use not net effluent generation i c i �a d v a CO T- N c 0 N 0 0 L IL m s 0 tM c 1~ m rn d v Packet Pg 117 7Bb Proposed Rate Revenues Surnrnary of Rate Revenue by City FY2014/15_1._f_)�2L1�116I I17113 FY 2018119 _City of Colton $ 7,049,797 $6,741,687; $6,945,286:` $7172 744 $7,425,942 __ $7 555 896 A City of Grand Terrace $ 1 182 000 $1 821 8511 $1 876 871 $1 938 338 $2 006 762 $2 041 880 Total $ 8,231,797 $8,563,5W $8,822,1571 $9,111,083 $9,432,704! $9,597,776 2 Packet P9 119 8 A' ° AGENDA REPORT` MEETING DATE May 13, 2014 Council Item TITLE City of Grand Terrace 2030 Vision and 2014-2020 Strategic Plan PRESENTED BY Kenneth Henderson, Interim City Manager RECOMMENDATION Approve City of Grand Terrace 2030 Vision and 2014-2020 Strategic Plan BACKGROUND The Interim City Manager was hired by the City Council, effective January 15, 2014 From the beginning, the City Manager has discussed a number of goals with Council, including the need for the City Council to develop a vision for the community and a strategic plan for accomplishing the adopted vision During the Mid -Year Budget Review, Council appropriated funds for this purpose and, after the development and issuance of a Request for Proposals (RFP), Flint Strategies was hired to facilitate the development of a vision and strategic plan for the City As part of this effort, Kendall Flint, of Flint Strategies, interviewed all Council Members and staff, including contract staff and volunteers, the week of March 31, 2014 The results of these interviews were used to structure a two-day study session with Council, staff and members of the public, which occurred on April 11-12, 2014 Once the study sessions were completed, Flint Strategies prepared a DRAFT 2030 Vision and 2014- 2020 Strategic Plan document, which was placed on the City Council's May 13, 2014 agenda for review, consideration and approval, as appropriate DISCUSSION For the last several'years, in an effort to adopt balanced budgets, the City Council and staff have been consigned to "chasing" the economy brought about by the Great Recession and the dissolution of all redevelopment agencies in the state These efforts have placed a premium on the City's shrunken human and financial resources, and resulted in service levels that are not calibrated to reflect the City's capacity to provide such services Recognizing this disparity and the pressing need to make the City economically viable, Council agreed to a visioning and strategic planning program which, as one of several, anticipated outcomes, would result in established goals, norms for Council and staff and calibrating services and service levels to reflect Council's goals and the current organizational capacity The consideration by Council and the community of the DRAFT Vision 2030 and 2014- 2020 Strategic Plan is auspicious In order to accomplish the recommended vision and 1 seize control of its financial destiny, it is imperative the City develop a "way forward" and Packet Pg 220 City Council tY Pending Packet Pg 122 City of Grand Terrace s a a City Council Strategic Plan Study Session 'j--gt Agenda Session Two, Saturday, April 12 1 Public Comments 9.00 AM IL 2 tM 2 Welcome and Introductions 9 15 (estimated y 3. Strategic Plan Implementation 9.30 a Establish Roles of Council and Staff -- b Identification of Potential Funding Oppotrtunil Options and Opportunities E c Council and Staff Norms Communications, Meeting Protocols and Commitment i a Strategic Plan Implementation 4 Summary and Final Wrap - No Packet Pg 124 5rf"E r n Our Mission To preserve and protect our community and its excepts, within the constraints of fiscally Our Vision Grand Terrace is an exceptionally safe and well ma opportunities, a vibrant and diverse local econo life that fosters pride and an engaged comma , E Our Core Values Open an 2 oughtful planning, i• it natural beauty and recreational ents enjoy an outstanding quality of to come and remain for generations Exceptional Customer Service Innovation and Creativity Positive and Productive Work Environment ryGr�r zv -a c 0 PacketPg 126 r � t �1 8 A b 4 Develop and Implement Successful Partnerships Work Collaboratively with Community Groups, Private and Public Sector to Facilitate the Delivery of Services Benefitting Youth, Seniors & Oui C04 Work with Local, Regional and State Agencies to Secure Funding for Pro and Projects y 5 Engage in Proactive Communication Develop and Implement a Cost Effective Proactive Commumcation,1Pro Utilize Technology and Web Based Tools to Dissemmate Info. Ail, Engage the Community by Participation {"4 4 � �. ca 4 0 uE,JJ c L N Q Packet Pg 128 Development of the Plan Research A substantial amount of research was conducted by Flint Strategies as part following • The City's 2013-2014 Annual Budget • The City's • The City's • Review o Broadcast Staff Interview Staff is a ci itical c were engaged in a Ken Henderson - l Amnia Alldrege - Mike Cruz - Mamt Steve Elam - Prole Cynthia Fortune - Kris Hai span - Hu Lt Donny Mahone Council Member S Councilmember Ja search included a thorough i eview of tIR c Articles, Blogs, Prioi Electron Results and nds (Local and Regional) Balance DuKV, esentmg all departments and all levels of staff knesses in Community Development Director ntenance Specialist, Public Works Code Enfoi cement Officer ,r of Child Care ent Analyst Assistant City Manager i McNaboe Fitz -- =7c rt Packet Pg 330 , t t "31 8 Strengths, Weakness, Opportunities and Threats (SWOT Analysis) Strengths f" V. * ( /\\ n i \, /\, Weaknesses Low Crime Rate Lack o�Revenue`s' Economic Development Experts Lack ofT,rrauimg/Cross Tranimg/ C ear Policy/Pr/ocedures Guide For Staff Strong Employee Commitment/Flexibility No C1ear�Vision Well Planned Community/Community Staff Turnover / Attrmon , oss Of Institutional Memory Current Financial Management S,t1 In �ecurity �eity Council Willingness to Work Together and Be Engaged Child Care Services/Quality Serve es 'Lack of PUB c Under'standmg Foi in and Functions Lack of Infrast uctui e (Rgads/Storm Drains) Needed for Development Technology Solid Staff With Expertise in Key Areas (Finance, Economic Develop r}ient) /Lac of Access to Current (IT) Good City Ma�nager In or s ste�t Code Enfo cement Contract Staff Wrt -Exper ce /Lack �Of 1311 ce�Between Desired Service Levels Human And Fiscal Resources Economic Development - New and Existii�ngCbbmmercial Land( Insolvency/ Uncertain Revenue Stream Untapped Staff K ofvledge aiiStrengths \ RDA D fiction Depai tment Of Finance Approval/Refection of Plan i1 e Access To Interns/Grants/Opportunitieor Supplem ntal Staff s Potential Threats to Our General Liability Coverage/ TIn eat Of Legal Action Oppoi tunity to Make the Public Mflre` ble aiW Activel'In gaged Tappm nnfo Volunteerism/ rns the"Commun ty Miscommunication and/or Lack Of Accurate Information (Internal/External) Citizen Council Stand Off Ability to eboot, Re 9 7 and Reim Embrace Chan e Temporary Nature Of Semoi Staff Oppoi to it es?forin reased Eff ctenciesJ ugh Out urcmg � Ea.; P rtu ty to Develop and Implement Our Vision' Thi eat Of Total Loss Of Institutional Memoi y Vocal Minority Opposition To Development P- vat&Publtc, Local; Regional And State Lack Of Emergency Response Capabilities rtnerships ,,z Heap yt`Communities Benefits Lack/Loss Of Staff To Address Skills To Address Key Issues ." MorreI 1 c_ Intetion by City Council Perception of 'Anti Business' Climate Opportunities `t Threats V 4- 0 Packet Pg 1372 1 J 8 A b • Council requests far i esearch of other staff woi k must be directed to the City the City Clei k regai ding matters within the Clerk's author ity • If moi a than one houi of staff time will be i equired to complete the tas 1xpro should be spent on prepai ing a i epoi t on the pi oposed item • Staff i esponses pi epai ed to Council inquiries shall be disti ibuted to all City'- V c 10 0 i C regarding legal mattei s or the City Council if time- >FJCKC • A Councilmembei shall not du ect staff to initiate any any i epoi t action, change cou s of actionWtVe • When preparing for Council'meetmgs, Councilmembers should direct uestions eathe City Managei so staff can pi ovide the desired infoi matron at the Council meeting _ I • Any concei ns by a member of the City Council regar,61) g th beha. or or w U of a City employee should be directed to the City Manager privately to ensue a the concern is i esolved Cou cilmembers sh I not re ram nd employees directly not should they communicate their concerns to anyone other than the City Mana er �gc • The Council values the opinio n input fr tcom unity and welcomes public discourse To ensue a accurate information and/or resolution to all mquii ies Gounc l=wi11 n resp `r d`fo publi comments and/or requests on non-agendized items Each matter will be adds essed mdividuall either via staff tot e divid al or grou of via Council at a futui a Council meeting as an agendized item This is to allow both Counc 1 Astaf o gat 7 r all releant mfoi ation and pi ovide a thoughtful response to requests and comments Packet Pg 134 AGENDA REPORT May 13, 2014 Council Item TITLE Approval of Information Systems Support Agreement with City of Loma Linda PRESENTED BY Steve Elam, Project Manager, Finance Department RECOMMENDATION Approve the attached Information Systems Support Agreement with the City of Loma Linda and authorize the Interim City Manager to sign the Agreement after making any minor administrative revisions that may be needed in order to finalize the document _BACKGROUND This agenda item is submitted on behalf of the City Manager's Office Support for the City of Grand -Terrace (City) computers, and other information systems infrastructure has been provided by a Management Information Systems (MIS) Specialist, who retired from the City effective April 30, 2014 In anticipation of this retirement and to address other technology support needs, the City has been in discussions with the City of Loma Linda (Loma Linda) regarding the possibility of having x Loma Linda assume support for the City's information systems operations Loma Linda has advanced information systems capabilities and provides computer -related services for other entities on a fee -for -service basis DISCUSSION Following several meetings between City and Loma Linda staff, and a comprehensive analysis of the City's computer hardware and software infrastructure by Loma Linda staff, the attached Information Systems Support Agreement (Agreement) has been developed to identify necessary equipment replacements and the transition of information systems support from the City to Loma Linda staff Recognizing that the City has not replaced much of its information systems infrastructure for many years due to budgetary constraints, the Agreement provides for the replacement of selected computers, file servers, telephone equipment, and peripheral devices The cost of the equipment replacements and related Loma Linda staff support, is approximately $65,000, the funding for which was approved by the City Council on March 11, 2014 as part of the Mid -Year Budget Review The ongoing staff support to be provided by Loma Linda under the Agreement will represent an estimated annual cost savings to the City of $37,200 Additionally, it is anticipated that the City's computer -related productivity will significantly improve once the new equipment has - been installed and the transition to Loma Linda support fully implemented Packet Pg 136 8Ba Y - GRAND TERRACE & LOMA LINDA INFORMATION SYSTEMS SUPPORT AGREEMENT 1 PARTIES AND DATE This Agreement is made and entered into this 13th day of May, 2014 by and between the City of Grand Terrace (hereinafter called "Grand Terrace") and the City of Loma Linda (hereinafter called "Loma Linda") Grand Terrace and Loma Linda may hereinafter be referred to individually as "Party" or collectively as the "Parties" 2 RECITALS 21 Both Grand Terrace and Loma Linda, as part of their municipal services, provide and maintain computer, phone and other information systems technology within their respective jurisdictions 22 Grand Terrace and Loma Linda are neighboring cities with similar technical needs Loma Linda has personnel and expertise that can meet Grand Terrace's needs for information systems support The personnel of both Parties have participated in joint training programs and have worked together in emergency situations in the past 23 The Parties now desire to expand the scope of cooperation between the Parties by having Loma Linda provide information systems support pursuant to an Information `Systems t Operational Support Plan as described herein Under this plan, employees of Loma Linda will set up and maintain equipment, software and systems acquired and owned by Grand Terrace In doing so, it is not expected or understood that Loma Linda will offer or provide any equipment, software or warranties to Grand Terrace 24 The Parties are authorized to contract for the provision of municipal services, including information systems services, pursuant to California Government Code Section 54981 3 TERMS 3 1 Recitals The Recitals listed above are incorporated into and hereby made a part of this Agreement 32 Representatives Grand Terrace and Loma Linda hereby designate their respective City Managers, or their designees, to act as their representatives for the performance of this Agreement Each representative shall have the power to act on behalf of their respective Parry for all purposes under this Agreement 33 Scope of Information Systems Operational Support Plan The scope of the Information Systems Operational Support Plan (Plan) is described in Exhibit "A" attached hereto and incorporated herein by reference Further operational details of the Plan shall be determined by the Grand Terrace and Loma Linda City Managers, or their designees The City Managers or their designees shall meet at least annually for the purpose of considering revisions to the Plan Each Party agrees to work closely with each other in the performance of this Agreement, to be Packet Pg 138 $Ba Grand Terrace, including but not limited to, eligibility to enroll in PERS as an employee of Grand Terrace, and entitlement to any contribution to be paid by Grand Terrace for employer contribution and/or employee contributions for PERS benefits 39 Notices Any notices required to be given under this Agreement shall be deemed to have been properly delivered, served, or given for all purposes when personally delivered to the Party to whom it is directed to, or in lieu of such personal service, when mailed, postage prepaid to the following addresses GRAND TERRACE LOMA LINDA City of Grand Terrace City of Loma Linda Attn City Manager Attn City Manager 22795 Barton Rd 25541 Barton Road Grand Terrace, CA 92313 Loma Linda, CA 92354 Any Parry may change its address for the purposes of this paragraph by giving written notice of such change in the manner prescribed by this paragraph 3 13 Third Party Rights Grand Terrace and Loma Linda agree that the provisions of this Agreement are not intended to create or clarify any rights in third parties not a party to this Agreement In addition, no third party shall have any right of action hereunder This Agreement shall not be enforceable by any parties other than Grand Terrace and Loma Linda 3 14 Privileges and Immunities All privileges and immunities of Grand Terrace and ~ Loma Linda provided -by state or federal law shall remain in full force and effect 3 15 Entire Agreement This Agreement contains the entire Agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements 3 16 Governing Law This Agreement shall be governed by the laws of the State of California Venue shall be in San Bernardino County 3 17 Successors and Assigns This Agreement shall be binding on the successors and assigns of the Parties, and shall not be assigned by either Party without the prior written consent of the other 3 18 Counterparts This Agreement may be executed in counterparts, each of which = shall constitute an original 3 19 Amendments The Information Systems Operational Support Plan (Exhibit "A") r may be amended by mutual agreement by and between the City Managers and/or their designees a as confirmed in writing Such amendments may include the addition of services beyond the scope of the specified hours and specific duties set forth in the Plan All other amendments to this Agreement must be made in a signed writing by all of the Parties hereto, or their respective successors or assigns Packet Pg 140 8Ba Y EXHIBIT "A" SCOPE OF "INFORMATION SYSTEMS OPERATIONAL SUPPORT PLAN" I Grand Terrace will provide all hardware and software at its own expense, including Desktop and Server Replacement • 4 HP E1rteDesk 800 Small Form Factor desktops with 21 5" LED LCD monitors will be purchased to replace older equipment assigned to staff • 1 HP ProLiant DL320e G8 server with HP 3 year next business day hardware support will be purchased to run Microsoft Windows 2012 Server and run essential services (Active Directory, Exchange, File Sharing) and migrate users off of Novell • 1 Tanberg DATA LTO 2 tape drive with 5 LTO-5 tapes and 1 cleaning cartridge will be purchased to replace the existing back up drive • 1 QNAP 2TB NAS/iSCSI will be purchased to replace existing FS1 Netware file server Phone System Replacement • 1 Avaya IP Office IP500v2 system will be purchased and installed to replace existing AT&T switchboard PBX system • 20 Avaya 1608 IP Phones will be purchased to replace existing handsets • 5 Avaya 1616 IP Phones will be purchased to replace existing handsets • 1 Avaya 1600 IP Phone will be purchased to replace existing handset - • 1 HP DL360 G7 Server will be purchased to manage Avaya phone system r) • 1 Extreme Networks Summit x440-48p Switch VMI be purchased to replace existing HP switch in data closet Software • 1 license of Symantec Backup Exec with 1 year essential support will be purchased to manage server and file backups and recovery Phone and Data Service • Voice and data services will be provided by TW Telecom, with a high-speed communication line (20 Mbps or greater) II Loma Linda employees will provide the following technical support services to Grand Terrace r Initial Programing and Set-up E Ll !s Ongoing Maintenance and Support a • City of Loma Linda will provide the maintenance and support of City of Grand Terrace's enterprise environment and network during City of Loma Linda's normal operating hours (Monday through Thursday from 7 AM to 5 30 PM, closed Fridays and holidays) Such support is expected to average 20 hours per week and will be billed on a 20-hour per week basis, regardless of the actual support hours worked Some services will be performed at Loma Linda City Hall, including initial set up of hardware and online system maintenance Services will include the following PacketPg 142 8Ba Severity Level Situation Response Time Target Resolution Component failure or malfunction not Initial response by causing significant impact on City's next business day, 2 weeks 4 — Low significant business processes Work- commence service 5 /o o 85% of the time around or manual processes are within 4 business available days M V c J c0 E O -i Packet Pg 144 4NED.AGENDA REPORT t MEETING DATE May 13, 2014 Council Item TITLE Freeway Agreement Between the State of California, Acting through the Department of Transportation, And the City of Grand Terrace Regarding the 1-215/Barton Road Interchange Project PRESENTED BY Sandra Molina, Interim Community Development Director RECOMMENDATION Adopt the attached Resolution approving a Freeway Agreement between the State of California, acting by and through the Department of Transportation, and the City of Grand Terrace BACKGROUND The State of California has Freeway Agreements with those jurisdictions that have freeway improvements within their limits The previous Freeway Agreement is from 1954, before incorporation Because of the new 1-215/Barton Road Interchange improvements, a Superseding Freeway Agreement is,necessary r DISCUSSION The San Bernardino Associated Governments (SANBAG), in cooperation with the California Department of Transportation and the City of Grand Terrace, proposes to improve the Interstate 215-Barton Road Interchange (Bridge No 54-0528, PM 1 31) The project will implement improvements consistent with the circulation element of the City of Grand Terrace General Plan, to enhance traffic operations and reduce existing traffic congestion The project includes the following improvements • Replacement of the existing Barton Road Over -crossing • Reconstruction and widening of Barton Road • Realignment of the existing entrance and exit ramps • Local street improvements to support the realignment • Traffic signal modifications • The addition of a round -about intersection at La Crosse Avenue and Barton Road to facilitate truck maneuvering The project completed the Project Approval and Environmental Document phase in February 2014 Work has commenced on detailed design and Right -of -Way assessments y_ The state has a large financial investment in access control to ensure safety and r � Packet Pg 146 8,C to facilitate the Right -of -Way acquisition and construction of the 1-215 Barton Road w Interchange Improvement Project Freeway' means a highway in respect to which the owners of abutting lands have no right or easement of access to or from their abutting lands or in respect to which such owners have only limited or restricted right or easement of access If in the judgment of the commission or the director the public interest would be advanced thereby a freeway as defined herein may be denominated a .controlled access highway' In all other respects said 'controlled access highway' shall be subject to all provisions of this code pertaining to freeways Reference Caltrans Project Development Procedures Manual Chapter 24 FISCAL IMPACT There is no fiscal impact associated with the adoption of the Freeway Agreement A separate Cooperation Agreement will deal with funding and construction obligations ATTACHMENTS • City Council Resolution • Freeway Agreement • Freeway Agreement Exhibit A APPROVALS Sandra Molina Completed 05/01/2014 10 45 AM Finance Completed 05/02/2014 11 22 AM City Attorney Completed 05/02/2014 1 36 PM Community Development Completed 05/05/2014 11 05 AM City Manager Completed 05/05/2014 2 33 PM City Council Pending Packet Pg 148 $Ca Section 2 Based on the aforementioned Initial Study and Negative Declaration/Environmental Assessment, the City Council finds that the approval of the Freeway Agreement regarding the Interstate 215/Barton road Interchange Project will not have a significant impact on the environment Section 3 The City Council hereby approves the new Freeway Agreement attached hereto Section 4 The City Council hereby authorizes the Mayor to execute the Freeway Agreement PASSED, APPROVED AND ADOPTED by the City Council of the Grand Terrace at a regular meeting held on the 13th day of May, 2014 Walt Stanckiewitz Mayor ATTEST l � City Clerk Page 2 of 4 Packet Pg 1570 1 T I m m co CD`` A . o 1 h C 3 CD Attachment City Council Resolution (1-215 Freeway Agreement) 8Cb 08-SBd-215-PM 0 0/2 05 2 This Agreement supersedes that portion of said Freeway Agreement dated June 7, l 1954, from the Riverside County Line to just north of Newport Road 3 CITY agrees and consents to the closing of CITY streets, relocation of CITY streets, construction of frontage roads and other local streets, and other construction affecting CITY streets, all as shown on the plan map attached hereto, marked Exhibit A, and made a part hereof by this reference 3 STATE and CITY agree that the Proposed Interchange Improvements identified on Exhibit A, refer to Modified Alternative 7 of the Interstate 215/13arton Road Interchange Project 3 The obligations of STATE and CITY with respect to the funding and construction of, the freeway project will always be dealt with in separate Cooperative Agreement(s) between a=, the parties, and any amendments thereto, or Encroachment Permits issued to CITY The m parties responsible for the construction of the freeway shall make any changes affecting a, CITY roads only in accordance with the plan map attached hereto, marked Exhibit A Q m 3 4 The obligations of STATE and CITY with respect to the acquisition of the rights of way required for the construction, reconstruction, or alteration of the freeway and CITY LL roads, frontage roads, and other local roads will always be dealt with in separate Cooperative N Agreement(s) between the parties, and any amendments thereto or Encroachment Permits ;- issued to CITY c i' '1 5 It is understood between the parties that the rights of way may be acquired in sections or units, and that both as to the acquisition of right of way and the construction of the `' freeway project, the obligations of STATE and CITY hereunder shall be carried out at such time and for such unit or units of the project as funds are budgeted and made lawfully available for such expenditures 6 CITY will accept control and maintenance over each of the relocated or reconstructed CITY roads, any frontage roads, and other local roads constructed as part of the project, on receipt of written confirmation that the work thereon has been completed, except for any portion which is adopted by STATE as a part of the freeway proper If acquired by STATE, CITY will accept title to the portions of such roads lying outside the freeway limits upon relinquishment by STATE 7 This Agreement may be modified at any time by the mutual consent of the parties hereto, as needed to best accomplish, through STATE and CITY cooperation, the completion of the whole freeway project for the benefit of the people of the STATE and of the CITY IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized officers 2 Packet Pg 154 Tov� LI i°o� Hof t�R� 9�rt c9 Fe Po P PM 1 2 r PROPOSED °F INTERCHANGE IMPROVEMENTS HIG �RCG- LEGEND FREEWAY & � CONNECTIONS CCD- INTERCHANGE � 4� CE--- SEPARATION \ / RR RAILROAD \\( SEPARATION ROAD OR STREET TO BE CONSTRUCTED RECONSTRUCTED OR RELOCATED ROAD CLOSURE AND TERMINUS CONSTRUCTION AS NECESSARY 1000 500 0 1000 2000 SCALE IN FEET ace I Got;On EXHIBIT A l \ Q COLTON __ Riverside Cono/ AquEduCt F LIMIT OF AGREEMENT /Yp \ w, - z �9`°� � R T E 215 PM 1 9 E i DD\ \ o F ` ` 0 D� °' �a a - E SonYOn Antonio .a.. y ` D RV Center Dr J S � C N J � Je m d LL E o Dot\u op Oe ows� Y STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION 08-SBD-215 PM 1 2/ 1 9 FREEWAY IN CITY OF GRAND TERRACE ON ROUTE 215 FROM 01 MILE SOUTH OF BARTON ROAC TO 01 MILE NORTH OF NEWPORT AVENUE IN SAN BERNARDINO CO PM 1 2/1 9 1 i� MEETING DATE AGENDA REPORT May 13, 2014 Council & Successor Agency Item TITLE Budget Workshop PRESENTED BY Cynthia Fortune, Finance Director RECOMMENDATION Receive staffs presentation on the Fiscal Year (FY) 2014-15 Budget as background information for introduction of the FY 2014-15 Proposed Budget on May 27, 2014 BACKGROUND In conjunction with the FY 2013-14 Mid -Year Budget Review on March 11, 2014, the City Council approved the FY 2014-15 budget development guidelines and review schedule Following is the review schedule approved by the City Council Action Date City Council Budget Workshop May 13 Introduction of Proposed Budget May 27 Budget Deliberation June 10 Budget Adoption June 24 DISCUSSION In accordance with the above review schedule, staff will be providing an overview of the FY 2014-15 budget during the May 13 Budget Workshop via a PowerPoint presentation and hand-outs This overview will be provided for the City Council's background information and no action will be requested at that time On May 27, the City Manager's Proposed Budget will be introduced for the City Council's review and discussion Further discussion and deliberation is scheduled for June 10 in preparation for scheduled budget adoption on June 24 FISCAL IMPACT: There is no fiscal impact associated with the Budget Workshop, since information will be presented but no action taken at that time APPROVALS Cynthia Fortune Completed 05/06/2014 5 21 PM Finance Completed 05/06/2014 5 23 PM City Attorney Completed 05/06/2014 6 48 PM City Manager Completed 05/06/2014 7 37 PM Packet Pg '1 77 ' 8E aria z� e MEETING DATE AGENDA REPORT May 13, 2014 Council Item TITLE Selection of Alternate to Water Policy Committee PRESENTED BY Kenneth Henderson, Interim City Manager RECOMMENDATION That the City Council select one of its own members, or the City Manager, as an alternate to the San Bernardino Municipal Water District Water Policy Committee BACKGROUND This item was continued from the April 22, 2014 to the City Council's May 13, 2014 meeting because of Council's desire to have all members present when considering this matter Council Member Darcy McNaboe currently serves as the City's primary member on the San Bernardino Municipal Water Distnct Water Policy Committee Former City Manager, Betsy Adams, served as the City's alternate member to the Water Policy Committee The alternate member position has been vacant since January 31, 2014 DISCUSSION During the most recent Form 700 submission cycle, staff was contacted by the San Bernardino Municipal Water District Clerk regarding related reports for the City's primary and alternate members Once District personnel learned that Ms Adams had left the service of the City, a request was recently forwarded to the Interim City Clerk regarding the City's desire to select a replacement alternate member to the District's Water Policy Committee Based upon the Council's consideration of similar matters related to filling the position of Mayor Pro-Tem and selecting a representative to the Southern California Association of Governments, it would be appropriate for Council to consider selecting one of its own, or the City Manager, as an alternate to the District's Water Policy Committee FISCAL IMPACT There is no fiscal impact to the City if Council selects an alternate member to the San Bernardino Municipal Water District Water Policy Committee APPROVALS Kenneth J Henderson Finance Completed 04/15/2014 7 39 PM Completed 04/16/2014 9 06 AM Packet Pg 15 1 8 F, rl1 TITLE PRESENTED BY 7xK�]ul►�1�►1�7_��[�P►I BACKGROUND AGENDA REPORT May 13, 2014 Council Item Selection of City of Grand Terrace Southern California Association of Governments Representative Kenneth Henderson, Interim City Manager That the City Council select one of its own members as the City's representative to the Southern California Association of Governments (SCAG) This item was continued from the April 22, 2014 to the City Council's May 13, 2014 meeting because of Council's desire to have all members present when considering this matter The City's representative to the Southern California Association of Governments (SCAG) was former Council Member Bernardo Sandoval Mr Sandoval resigned from the Council effective January 14, 2014 The City's SCAG representative position has ` $ been vacant since that time DISCUSSION With the Southern California Association of Governments' (SCAG) General Assembly having occurred on May 2, 2014, staff received a request from SCAG staff, asking the City Council to consider selecting one of its own members as a replacement for former Council Member Bernardo Sandoval In keeping with the Council's wishes regarding the position of Mayor Pro-Tem, it is appropriate for Council to consider SCAG's request and take action, as appropriate FISCAL IMPACT There is no fiscal impact to the City if Council selects one of its own members to be the City's designated representative to the Southern California Association of Governments APPROVALS Kenneth J Henderson Completed 04/15/2014 6 56 PM Finance Completed 04/16/2014 9 05 AM City Attorney Completed 04/16/2014 9 23 AM City Manager Completed 04/16/2014 9 25 AM Packet Pg 161 aAGENDA REPORT MEETING DATE May 13, 2014 Council Item TITLE Selection of Mayor Pro-Tem PRESENTED BY Kenneth Henderson, Interim City Manager RECOMMENDATION That the City Council take action naming one of its members as Mavor Pro-Tem BACKGROUND This item was continued from the April 22, 2014 to the City Council's May 13, 2014 meeting because of Council's desire to have all members present when considering this / matter The City Council officer position of Mayor Pro Tern became vacant with the resignation of former Council Member Bernardo Sandoval from the City Council on January 14, 2014 DISCUSSION The City Council conducted a visioning/strategic planning study session on April 11 and April 12, 2014 During the proceedings, Council, through consensus, indicated to staff its wish to fill the Council officer position of Mayor Pro-Tem Now is the time and place for Council to consider this matter and take action, as appropriate FISCAL IMPACT There is no fiscal impact to the City if Council selects one of its own as Mayor Pro-Tem APPROVALS Kenneth J Henderson Completed 04/15/2014 6 43 PM Finance Completed 04/15/2014 7 15 PM City Attorney Completed 04/16/2014 9 00 AM City Manager Completed 04/16/2014 9 02 AM City Council Completed 05/07/2014 8 53 AM City Manager Completed 05/06/2014 1 02 PM City Council Pending Packet Pg 1673 ] -4a ,.ate City of..G=ra:n-.dk�e ,e=rlrace 2030 Vision and 2014 =2'�,, 20 Strategic Plan n _a Pre ared b Flint Strategies, Half Moon Bay, CA P � Y � Y e� K Executive Summer This document will serve as the City of Grand Tei race's 2014-2020 Stn ategnc Plan, the first significantcornpbnent of its 2030 Vision Its purpose is to help the City piioritize its efforts, allocating both fiscal and human resources tosaeiitevv'e a shared Vtsuin.dhd Goals -The Plan is the result of a comprehensive t eview by Flint Strategies of the Cnty's current open ations and i nnanceS,, interviews wttb �sfatf rtiembei s and contractors, and, r p... C1nSLUsslons with City Councilmembei s The n esults of that analysis were presente&far'dPubissaq by Counul nd-staff at at a two-day Study Session that was held April 11th and 12th, 2014 The study session resulted in the identification of the City's Mission, Vision; Corelvalas and tfie. f 1 Ensure Our Fiscal Viability Commit to a Balanced Budget £ A, 7 -K ; Identify Additional Revenue Sources s s >_ ' Review Expendctut es and Seek Savings � ' . Explore Creative Means to Provide Services .< F Ensure Appi opt late Cost Recovery fot Servtc"es + Y 2 Maintain Public Safety _•. a a <� Ensure Staff Levels for Police'SMtces Rem"aIn tldei itfor Out Community Invest in Critical lm covet t6dts,to IlifrastrucCiire �`,• 'use, _:; `• r " p 3 Pi omote EcaI6= Development.w' Develop Pcaacttve -gcbY�noin�tc Development PCcin to Attract New Businesses Invest in Irnfr=astru(t�ir,_ tUeeded to Support=Business Attraction and Retention Prepare for Development by? Vpdaw7g'Zont and Development Codes including the Stgn,Cpde 19 The role of the City Council was to establish these goals based on community input and f Sti ategies to achieve those goals City staff, under the direction of the City Manager, will d x r', cal viability, xTB6 fol �elop specific tactics of the City Manager is to develop to implement the plan 5 6 pd t Y_�- �^ a�y�•a=fir x� .: �., ¢'s-.sue" A e � r� 3 ��.N F -�ry•61 s �ta,dy�a*.y`u��'t��'�` .ar�x � «3 ',� , 'e` .'"�w•w•.a �, f� ' '���'"'�%c „. f, "� «y 3°ti �,{ 1. ti- �di. :.d�"..e$,n �.,' e`rA a �f'--�''y :; "y•" Ly 1 he plan also includes a Governance�sectiori; which reflects,, lie, C,,�i Council's commitment to complete ti ansparency in conducting the City s business and ensures a timely,'thofightfuI r sponse,to co nmumtyj dquests and inquiries •� ', P Council Study Session The Grand Terrace City Council and Staff atttnded a two-day Study Session to discuss the current state'of the\City'S Strength%, weaknesses, oppoi tunitie% and threats The pui pose of the session was to identify ai cas of='concerh,and. apprbpi iaie, pnorihes f the City moving forwai d Discussion revolved around the following topics x-;c • What should the City's main services include now and in the future? • How can the City address be%t address its fiscal challenges t + T f N� ! • What types of development does Grand Tea race need to remain vi ble • How can the City retain critical staff and create a pi oductive and positive work environment foi employees and conti actoi s? Membei s of the public were also given an opportunity to commeht at both' z , a w� N I Benchmarks - M , Ovci the nest five yeas s, stall Will include pi ogi ess i epoi t% on the implementation of the Plan citing Specific ,examples of fulfillment This m iy include Reducing dependence on reserve ftmds,- �% Decrease in crime/response time for emei gency services, New busine,,ses, progress in the Downtown aica Development of new program, and/or amenities managed by pi ivate agencies via partner ships with the City, and • Deinon5trated improvement in communications with the public It i,, recommended that the City Council review the 2014-202fi Stf Aegic Plan bi-annually to gauge pi ogress towaids achieving its goals Governance ,r - Open, effective governance" is recluii ed to implement this PI -in 'I lie City Council has agi eed to a poliLy of governance that includes the following I his Plan i5 based on a long-term'commitmenmy the City Council and St nff to focuti on implementation The l ole of thi, Mayol will be ceremonial, presiding over CityRCouiikif ineetings, representing the City at community events and serving as thc. main spokespei son toi the City during his or hei term Conclusions r' �y l'he 2014-2020 Sti ategic Plan does not mcludc. all of the Goals, and suggested proarars, pi olects`and inrtiahv�es suggested by the public, staff or Council over the course of its development The Goals included represent the. higltespri r �iesyfor the cyan munxty and Council Should other soul ces of revenue be identified, the City may i evisit this Plan and adapt it as needed Far now, by limiting -the Ci�ty's efforts to these key areas, Grand Tel race will be better positioned to achieving its long-term vision and maintainingits fiscal viability t 3 �; Art ,�' T •J r 5/13/2014 f Grand Terrace het Workshop cal Year 2014-15 May 13, 2014 Purpose of Budget Workshop • Current Year updates/adjustments Review of FY2014-15 Base Budget (with revenue & expenditure assumptions') • Position Summary • - Proposed FY2014-15 Budget Requests • Fund Balance Review T • Budget Review Schedule 1 5/13/2014 t h 2014-15 Budget Development x ^ • Any change in compensation levels will be by policy direction of the City Council; • A general inflation factor will}not be applied to contractual services or maintenance & operations line items; 5 2014-15 Budget Development • Any proposed service level enhancements or additional staffing will be submitted as a New Budget Request and not included in the base budget. • Any New Budget Request items supported,bysthe City Manager will be, separately identified in the Proposed budget; 6 0 3 5/13/2014 2013-14 Year-end t- RYK }. Pdr i Category Amount Revenues $496949545 Expenditures (3,911,950) r Surplus/(Deficit) $782.595i Projected Fund Balance $192029091 ,(June 30, 2014) _ 9 2013-14 Adjustments o -.. }:• �a .s �.r. wss�4�!�;�" .�. �e3k" ,�F" X„`F,;h:, `s '{", c a �-�&.,{�rKa�: _ ,�-av *c��rtYa,'��.4'�, ��,�,, RL ,.- - ' I Revenues: • Receipt of One-time funds from the Sheriff's office (overpayment of workers' compensation charges of $1129000). Expenditures: • Approval of Mid -Year budget adjustment requests totaling $2179500. Io 5 5/13/2014 r General Fund Position, Summary 13 2013-14 Position Summary [� Description Amount ` Salaries & Benefits budget '1,013,000 Projected Year-end 707 300 Savings 305,700 11 Less: Cash outs (145,800) Personnel Svcs (157,900) (303 700 Net Savings A2 000 14 7 5/13/2014 2014-15 Base' Adjustments ,,$:aC;€.. `4.. ,•c `: Y `;.'. ,..s., �Fiw RY', ,s;: ... �.. 2>. 5;fin Revenues: f • Receipt of One-time funds of A400,000, from the City of Colton,.-, - per the waste water agreement : F, signed by both the City of Grand Terrace & the City of Colton; • Receipt of on -going funds of `$300,000 from the` City -of Colton. . per the waste water agreement. 17 3 ' 2014-15 - Base AdjJustments Expbendtures§r a • Maintain Sheriff contract staffing at p current level; • Increase in Sheriff contract of 4.5% 'as provided by the County Sheriff's W office; - Increase in CalPERS retirement, - contributions of 9% as provided by CalPERS actuarial; 18 0 5/13/2014 y 4' 2014-15 Base Adjustments 17 #.,,: n. I ­40�-r 11'!�47 . w `:11"'S.`,.,,•,•rsmtl,- Expenditures (continued • Increase in salaries & benefits of 3.5% previously charged to the Successor Agency as a result of reclassification by the DOF of 1. previously approved enforceable obligations into the administrative r _ h allowance. - 21 2014-15 Base Budget Revised Category -� at Mid -Year Mid -Year Adjustments 2014-15 i� Base Budget Revenues $3,345,017 $700,000 - $4,045,017 Expenditures (4,102,684) (93,043) (4,195,727) Surplus/(Deficit) ($757,667) , $606,957 , ($150,710) h RPTTF 306,370 ------------ 306,370 Surplus (Deficit) 451,297) $606.957 $155.660 22 11 5/13/2014 2014-15 Budget Requests, s Description Personnel Requests Non -Personnel Requests Training, Travel & Conferences Camera Replacement - Parks Maintenance of buildings, grounds, trees, public facilities f Amount $83,000 $33,000 22,000 26,000 2014-15 Budget Requests 25 f Description Amount f v:4 Non -Personnel Requests (continued) Building Official services $28,000 Economic Dev marketing (part of Visioning Plan) 24,000 K` Code update (part of Visioning Plan) 20,000 Total Requests $236,000 26 13 5/13/2014 w 2013=14 Fund Balance------------ I Description jAmount Fund Balance at Mid -Year $1.202.091 r Reserve Designations Contingency Reserve 6009000 1. Equipment Replacement 2009000- Budget Stabilization - 402,091 t t Total Reserve Designations $1.202.091 29 State Controller's Audit of - :.- ti ;vf .ea"• ,;1;�... .;';a-.,u `a,yi`'';i`'.'' r:; %`u,"sz.5�;. J•x?::i?eit,..a q= - = .. • The Statel Con$troller"s Of dle(SCO),,; performed an audit of all transfers madel,4�r' fromthe Low/Moderate Income Housing, Fund (LMIHF) to the General Fund. • The scope of the audit covered thew' F Period from*January 1, 2011 through,'_ January 31, 2012. - 30 15 5/13/2014 State Controller's Audit of t } Description � Amount Residual Receipts $300,000 Property Transfer 132,000 a Total 432 000 1 Budget Stabilization Reserve $402,091 t Surplus from 2014-15 budget 31,660 Total Reserve $433,75 33 fv - . i� � a ., ry J - rp•, '"` q,M1^I `.r{'y�`'+kyiy : v (� y v � ^ • 1 S� .n ^aY. a Budget Review Schedule FY2014-15 - 4 34