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09/23/2014CITY OF GRAND TERL AC E - AGENDAA STAFF REPORTS FOR THE REGULAR MEETING OF THE CITY COUNCIL AND THE CITY COUNCILAS THE SUCCESSOR AGENCY TO THE COMMUNITY J REDEVELOPMENT AGENCY & THE GRAND TERRACE HOUSING AUTHORITY 'Tuesday, September 23, 2014 , IS= p.m. Regular Meeting I COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 t - � t , 2 The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6 00 p m C=. OF GRAB TERRACE _ AGENDA & STAFF REPORTS , , FOR THE REGULAR MEETING OF THE CITY COUNCIL AND THE CITY COUNCIL AS THEISUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY & THE GRAND TERRACE HOUSING AUTHORITY Tuesday, September 23, 2014 6:00 p.m. Regular Meeting r COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 +F Q , f i �Rtfi D TEiZ fEiCE Walt+Stanckiewitz, Mayor Darcy McNabop, Council Member Jackie Mitchell, Council Member Sylvia Robles, Council Member s Kenneth J Henderson, Interim City Manager Richard L Adams, City Attorney Deborah Harrington, Interim City Clerk _- Cynthia A Fortune,, Finance Director Sandra Molina, Community -Development Director f a The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6 00 p m CITY OF GRAND TERRACE CITY COUNCIL AGENDA • SEPTEMBER 23I 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 <http //www cityofgrandterrace orq> CALL TO ORDER Convene City Council and City Council as the Successor Agency to the Community Redevelopment Agency Invocation Pledge of Allegiance Roll Call Attendee Name Mayor Walt Stanckiewitz Present ❑ 1 Absent ❑ Late ❑ Arrived Council Member Darcy McNaboe ❑ ❑ ❑ Council Member Jackie Mitchell ❑ ❑ ❑ Council Member Sylvia Robles ❑ 1 ❑ ❑ A SPECIAL PRESENTATIONS Presentation by Larry Walker, County Auditor/Tax Collector Presentation of Proclamation for Bi-National Health Week B CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial They will be acted upon by the City Council at one time without discussion Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent calendar for discussion City of Grand Terrace Page 1 Agenda Grand Terrace City Council September 23, 2014 7 Amendment to Chapter 8 104 of Title 8 and Chapter 12 32 of Title 12 Related to Smoking Prohibitions RECOMMENDATION Adopt ORDINANCE NO 2014-_, AN ORDINANCE OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING CHAPTER 8104 OF TITLE 8 AND CHAPTER 1232 OF TITLE 12 RELATING TO SMOKING PROHIBITIONS DEPARTMENT COMMUNITY DEVELOPMENT Repeal Resolution No 2014-22 and Adopt a New Resolution for Parking Restrictions on Westwood Lane and Paint Red Curb RECOMMENDATION RESOLUTION NO 2014 - _ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE RESCINDING RESOLUTION NO 2014-22 AND AUTHORIZING THE FIRE CODE OFFICIAL TO PROHIBIT PARKING OF VEHICLES ON THE SOUTH EAST SIDE AND ENTIRE CUL-DE-SAC AREA OF WESTWOOD LANE DEPARTMENT COMMUNITY DEVELOPMENT C PUBLIC COMMENT This is the opportunity for members of the public to comment on any items not appearing on the regular agenda Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda, but may briefly respond to statements made or ask a question for clarification The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting D CITY COUNCIL COMMUNICATIONS Council Member Jackie Mitchell Council Member Sylvia Robles Council Member Darcy McNaboe Mayor Walt Stanckiewitz E PUBLIC HEARINGS To speak on Public Hearing Items, please fill out a Request to Speak Form and give it to the City Clerk Each person will be allowed 3 minutes to address the City Council If you challenge in court any action taken concerning a Public Hearing item, you may be limited to raising only those issues you, or someone else, raised at the Public Hearing described in this notice or in written correspondence delivered to the City at, or prior to, the Public Hearing All Public Hearings will be conducted following this format (a) Public Hearing opened (d) Applicants comments (applicant not limited to 3 minutes) (b) Written communication (e) Oral - favor and opposition (speakers limited to 3 minutes) (c) City Council/staff comments (f) Public Hearing closed City of Grand Terrace Page 3 Agenda Grand Terrace City Council September 23, 2014 14 Public Employment, pursuant to Government Code Section 54957(b)(1) Title City Manager ADJOURN The Next Regular City Council Meeting will be held on Tuesday, October 14, 2014 at 6 00 p m Agenda item requests must be submitted in writing to the City Clerk's office no later than 14 calendar days preceding the meeting City of Grand Terrace Page 5 "2 CITY OF GRAND TERRACE CITY COUNCIL MINUTES • SEPTEMBER 9, 2014 Council Chambers Regular Meeting 6 00 PM Grand Terrace Civic Center • 22795 Barton Road CALL TO ORDER Mayor Stanckiewitz convened City Council and City Council as the Successor Agency to the Community Redevelopment Agency Invocation was led by Pastor Andy McRae from the Azure Hills Seveth-Day Adventist Church Pledge of Allegiance was led by Council Member Sylvia Robles Attendee Name t Title A' .` Status Arrived_ Walt Stanckiewitz Mayor Present Darcy McNaboe Council Member Present Jackie Mitchell Council Member Present Sylvia Robles Council Member Present Kenneth J Henderson Interim City Manager Present Richard Adams City Attorney Present Deborah Harrington Interim City Clerk Present [Present Sandra Molina Community Development Director Steve Elam Project Manager, Finance Department Present Cynthia Fortune Finance Director Present Linda Phillips Director of Child Care Services Present Emily Wong Interim Assistant City Manager Absent SPECIAL PRESENTATIONS - NONE CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial They will be acted upon by the City Council at one time without discussion Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent Calendar for discussion RESULT APPROVED [UNANIMOUS] MOVER Darcy McNaboe, Council Member SECONDER Jackie Mitchell, Council Member AYES Walt Stanckiewitz, Darcy McNaboe, Jackie Mitchell, Sylvia Robles 1 Waive Full Reading of Ordinances on Agenda DEPARTMENT CITY CLERK 2 Approval of Minutes — Regular Meeting — 08/26/2014 M City of Grand Terrace Page 1 Packet Pg 6 Minutes Grand Terrace City Council September 9, 2014 PUBLIC HEARINGS - NO HEARINGS SCHEDULED UNFINISHED BUSINESS None NEW BUSINESS Monthly Financial Report for July 2014 Finance Director Fortune provided a PowerPoint Presentation outlining the elements of the Monthly Financial Report This report will be placed on the City Council agenda each month in the future as a receive and file Consent Calendar item Council Member McNaboe expressed her appreciation for the Monthly Financial Report, not only for the City Council but the public She questioned how certain funds from the County would be reflected in the document Mayor Stanckiewitz asked how the certain funds will be displayed Council Member Robles stated the footnotes in the document are very useful She noted the City's financial struggle since incorporation and this report will also demonstrate how the City is functioning within the budget Amendment to Chapter 8 104 of Title 8 and Chapter 12 32 of Title 12 Related to Smoking Prohibitions Community Development Director Molina provided a report on the proposed Ordinance to prohibit smoking in public parks and facilities The Ordinance would also prohibit the use of electronic smoking devices in addition to traditional tobacco products The City has been awarded the "Healthy City" designation The City has a number of healthy lifestyle activities occurring in the community throughout the year Community Development Director Molina answered questions and explained private homes were not included in the regulations but could be considered in the future INTRODUCED ORDINANCE NO 275, AN ORDINANCE OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING CHAPTER 8104 OF TITLE 8 AND CHAPTER 1232 OF TITLE 12 RELATING TO SMOKING PROHIBITIONS RESULT APPROVED [UNANIMOUS] MOVER Darcy McNaboe, Council Member SECONDER Jackie Mitchell, Council Member ` AYES Walt Stanckiewitz,-Darcy McNaboe, Jackie Mitchell, Sylvia Robles 7 Successor Agency's Recognized Obligation Payment Schedule (ROPS) 14-15B Finance Director Fortune provided a staff report noting that Redevelopment dissolution and wind -down legislation requires Successor Agencies to submit a Recognized Obligation Payment Scheduled (ROPS) covering each six-month period RESOLUTION NO 2014-62, A RESOLUTION OF THE SUCCESSOR AGENCY TO COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE COVERING THE PERIOD JANUARY 1, 2015 TO JUNE 30, 2015 (ROPS 14-15B) AS REQUIRED BY HEALTH AND SAFETY CODE SECTION 34177 2 City of Grand Terrace Page 3 x Packet Pg 8 Minutes Grand Terrace City Council September 9, 2014 Title Interim City Manager 10 Public Employment, pursuant to Government Code Section 54957(b)(1) Title City Manager Mayor Stanckiewitz reconvened the City Council Meeting at 7 32 p m noting there was no reportable action ADJOURN Mayor Stanckiewitz adjourned the City Council and Successor Agency meeting at 7 33 p m in the Memories of Vaughn Best and Rosalie Orrick This meeting will be adjourned in memory of Vaughn Best, a longtime Grand Terrace resident The Next Regular City Council Meeting will be held on Tuesday, September 23, 2014 at 6 00 p m City of Grand Terrace Page 5 Packet Pg 10 AGENDA REPORT MEETING DATE September 23, 2014 Council & Successor Agency Item TITLE Approval of Check Register No 08312014 PRESENTED BY Cynthia Fortune, Finance Director RECOMMENDATION Approve Check Register No 08312014, as submitted, which includes the Check Register Account Index for Fiscal Year 2014-15 2030 VISION STATEMENT This staff report supports Goal #1, "Ensuring Our Fiscal Viability", through the continuous monitoring of expenditure budgets, allocations and operational costs BACKGROUND The check register for the period ending August 31, 20154 has been prepared in accordance with Government Code §37202 and is hereby submitted for the City Council's approval On May 13, 2014, City Council approved the City's Fiscal Policies, which included Policy 2 01 — Accounts Payable Policy 2 01 states that a "check register will be prepared by the Finance Department and submitted to City Council for review and approval on a monthly basis during a regularly scheduled City Council meeting 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 code(s) associated with each payment " Check Register No 08312014 lists all payments made to vendors during the month of August 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 CRA 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 A total of $1,747,665 92 in accounts payable checks were issued during the period for services, reimbursements, supplies and contracts and are detailed in the attached check register Packet Pg 11 a APPROVALS Finance Completed Cynthia Fortune Completed City Attorney Completed City Manager Completed City Council Pending 09/13/2014 3 51 PM 09/13/2014 3 52 PM 09/15/2014 10 28 AM 09/15/2014 144 PM R PacketnP11, City of Grand Terrace Check History Listing August 1, 2014 - August 31, 2014 Check Check Vendor Invoice No / Invoice Invoice Amount Check No Date Account No Date Description Paid Total 70664 08/06/2014 001950 DATA QUICK B1-2302751 07/01/2014 UPDATES TO PROPERTY DATA PROGRAM E 10-370-250-000-000 8700 E 10-380-250-000-000 4350 13050 70665 08/06/2014 006531 S B COUNTY SHERIFF 70666 08/06/2014 011284 SIEMENS INDUSTRY INC 70667 08/06/2014 011328 ACCELA INC #774375 70668 08/06/2014 011194 AMERICAN FIDELITY ASSURANCE CO 70669 08/06/2014 011195 AMERICAN FIDELITY ASSURANCE CO A ce' cn 13839 07/31/2014 GAS & VEH MAINT SHERIFF OT E 10-410-220-000-000 15 123 59 E 10-410-250-000-000 4,95353 5620001912 07/24/2014 JUN TRAFFIC SIGNAL RESPONSE CALLS E 16-510-255-000-000 77382 5610004731 07/23/2014 MAY TRAFFIC SIGNAL MAINTENANCE E 16-510-255-000-000 70200 5610005226 07/24/2014 JUN TRAFFIC SIGNAL MAINTENANCE E 16-510-255-000-000 70200 7329 08/01/2014 AUG MINUTETRAQ SUBSCRIPT & HOST E 10-125-250-000-000 55000 B166832 B 23-250-20-00 1021346A B 23-250-10-00 07/01/2014 JUL EMP PAID ACCIDENT/SUPP LIFE/SUPP STD 07/15/2014 EMP PAID FLEX SPENDING/DEP CARE 31938 421 38 20,077 12 217782 55000 31938 42138 w rr Attachment Check Register 08312014 (1481 Approval of Check Register No 08312014) City of Grand Terrace Check History Listing August 1, 2014 - August 31, 2014 Check Check Vendor Invoice No / Invoice Invoice Amount Check No Date Account No Date Description Paid Total 70676 08/06/2014 011330 JOAB JEROME 07152014 07/15/2014 REFUNDABLE DEPOSIT FOR WASTE DIVERSION B 23-500-10-00 1 90000 1 900 00 70677 08/06/2014 005400 OFFICE DEPOT 721235389001 07/25/2014 OFFICE SUPPLIES E 10-120-210-000-000 6663 70678 08/06/2014 011199 PRUDENTIAL MUNICIPAL POOL AUG 2014 07/24/2014 AUG EMPLOYEE/DEP DENTAL INSURANCE E 09-440-142-000-000 13833 B 10-022-66-00 55628 E 10-120-142-000-000 578 E 10-140-142-000-000 595 E 10-175-142-000-000 373 E 10-185-142-000-000 1165 E 10-370-142-000-000 1228 E 10-450-142-000-000 417 E 16-175-142-000-000 1044 E 21-175-142-000-000 253 E 32-200-142-000-000 567 6663 75681 70679 08/06/2014 006335 ROQUET PAVING INC 0713-14 07/30/2014 PAVEMENT MARKING- DE BERRY, MT VERNON & VAN BUREN E 20-200-723-000-000 4,55000 4,55000 70680 08/06/2014 006504 S B FIRE DEPT /HAZ MATERIAL GT115CC 07/17/2014 1ST QTR HOUSEHOLD HAZARDOUS WASTE SERVICE E 10-187-258-000-000 4 133 00 .0 4 133 00 n rt W V v Attachment Check Register 08312014 (1481 Approval of Check Register No 08312014) kM sm n co m City of Grand Terrace Check History Listing August 1, 2014 - August 31, 2014 Check Check Vendor Invoice No / Invoice Invoice Amount Check No Date Account No Date Description Paid Total 70685 08/06/2014 007987 XEROX CORPORATION 075296850 08/01/2014 JUL WC7556P XEROX COPIER LEASE E 10-190-212-000-000 39836 E 10-190-700-000-000 31941 075296849 08/01/2014 JUL WC5755A XEROX COPIER LEASE E 10-190-212-000-000 6756 E 10-190-700-000-000 311 39 70686 08/13/2014 001213 AT & T AUG 2014 08/01/2014 AUG PHONE & INTERNET SRVS E 09440-235-000-000 63581 E 10-190-235-000-000 61563 E 10-450-235-000-000 7172 E 10-805-235-000-000 21004 E 10-808-235-000-000 12980 70687 08/13/2014 010218 CHEVRON & TEXACO CARD 41991009 08/06/2014 JUL VEHICLE FUEL SERVICES E 09-440-272-000-000 9294 E 10-175-272-000-000 44596 E 10-185-272-000-000 2951 70688 08/13/2014 001930 DAILY JOURNAL CORPORATION B2642829 E 10-125-230-000-000 B2639650 E 10-125-230-000-000 07/09/2014 ORDINANCE NO 273 PUBLICATION 07/03/2014 PUBLIC HEARING NOTICE 1 09672 1 663 00 56841 36740 16500 53240 w c Attachment Check Register 08312014 (1481 Approval of Check Register No 08312014) City of Grand Terrace Check History Listing August 1, 2014 - August 31, 2014 Check Check Vendor Invoice No / Invoice Invoice Amount Check No Date Account No Date Description Paid Total 70694 08/13/2014 005400 OFFICE DEPOT 723391676001 08/06/2014 OFFICE SUPPLIES E 10-120-210-000-000 6663 723391750001 08/06/2014 OFFICE SUPPLIES E 10-120-210-000-000 156 6819 70695 08/13/2014 005586 PETTY CASH 08082014 08/08/2014 REPLENISH C CARE PETTY CASH E 09-440-220-000-000 349 E 09-440-221-000-000 4312 E 09-440-223-000-000 10322 E 09-440-228-000-000 11385 26368 70696 08/13/2014 006451 S B COUNTY ASSESSOR 106246 08/05/2014 UPDATED ASSESSOR PARCEL MAPS E 10-172-220-000-000 400 400 70697 08/13/2014 006510 S B COUNTY INFORMATION 16821 07/31/2014 JUL PAGER ACCESS E 10-175-240-000-000 911 911 70698 08/13/2014 010664 SHELL FLEET MANAGEMENT 8000209687408 07/23/2014 JUL 2014 VEHICLE FUEL E 10-175-272-000-000 10575 10575 70699 08/13/2014 006720 SO CA EDISON COMPANY JULY 2014 08/07/2014 JUL 2014 ENERGY USAGE E 16-510-238-000-000 5 597 88 E 26-600-238-000-000 4980 E 26-601-238-000-000 41 50 .� E 26-602-238-000-000 5810 n 5 747 28 cQ w N a Attachment Check Register 08312014 (1481 Approval of Check Register No 08312014) Check Check No Date Vendor 70706 08/13/2014 007220 UNDERGROUND SERVICE ALERT 70707 08/20/2014 001206 ARROWHEAD CREDIT UNION 70708 08/20/2014 011296 CALPERS 457 PLAN 70709 08/20/2014 011031 CINTAS CORPORATION #150 M 70710 08/20/2014 006435 CITY OF SAN BERNARDINO m n M iQ City of Grand Terrace Check History Listing August 1, 2014 - August 31, 2014 Invoice No / Invoice Invoice Amount Check Account No Date Description Paid Total 620140295 07/01/2014 JUN DIG ALERT TICKETS E 16-900-220-000-000 3600 JUL/AUG 08/11/2014 JUUAUG VISA CHARGES E 09-440-220-000-000 C CARE FOOD & SNACKS 7411 E 09-440-221-000-000 TINY TOT PROGRAM SUPPLIES 3840 E 09-440-223-000-000 DAY CARE PROGRAM SUPPLIES 14903 E 09-440-228-000-000 PRE-SCHOOL PROGRAM SUPPLIES 3394 E 09-440-272-000-000 SCHOOL BUS WASH 2800 E 10-110-220-000-000 COUNCIL MEETING SNACKS 4000 E 10-110-270-000-000 LEAGUE OF CA CITIES CONF 1 500 00 E 10-120-210-000-000 OFFICE SUPPLIES 32399 E 10-120-270-000-000 LEAGUE OF CA CITIES CONF 53518 E 10-190-250-000-000 PERF EVALUATION APPLICATION 1 500 00 E 10-190-280-000-000 RECRUITMENT/ADVRTSNG-VACANCIES 93643 E 10-195-245-000-000 FACILITIES CLEANING SUPPLIES 85663 E 10-380-210-000-000 COMPUTER SUPPLIES 45748 PR END 08/01/2014 08/01/2014 PR END 08/01/2014 CONTRIBUTIONS/LOANS B 10-022-63-00 1 666 36 B 10-022-64-00 27379 150333879 08/13/2014 C CARE KITCHEN & REST ROOM SUPPLIES E 09-440-228-000-000 11375 2015-10000008 07/30/2014 JUL ANIMAL CONTROL SRVCS E 10-187-256-000-000 10 135 75 3600 6 473 19 11iELtiLF7 11375 10,135 75 w rr UAttachment Check Register 08312014 (1481 Approval of Check Register No 08312014) City of Grand Terrace Check History Listing August 1, 2014 - August 31, 2014 Check Check Vendor Invoice No / Invoice Invoice Amount Check No Date Account No Date Description Paid Total E 32-600-307-000-000 2428 E 32-600-326-000-000 2428 E 48-600-330-010-000 8212 E 52-700-710-000-000 1214 E 52-700-767-000-000 1214 11,660 47 70715 08/20/2014 006310 ROADRUNNER SELF STORAGE INC 70716 08/20/2014 011277 SANTA FE BUILDING MAINTENANCE 70717 08/20/2014 011138 SPARKLETTS 70718 08/20/2014 011283 TODD PETERS ELECTRIC 70719 08/20/2014 010605 URBAN FUTURES INCORPORATED a c� 'o ce N w 17702 08/15/2014 AUG STORAGE RENTAL E 10-140-241-000-000 12400 13096 07/31/2014 JUL JANITORIAL SERVICES E 10-195-245-000-000 50833 E 10-450-245-000-000 45000 9637116 080114 08/01/2014 JUL 2014 BOTTLED WATER E 09-440-238-000-000 9320 E 10-190-238-000-000 7120 E 10-805-238-000-000 2787 0812014-01 08/12/2014 EMERGENCY REPAIRS AT KARGER PARK E 10-450-246-000-000 14071 06/27/2014 DISCLOSURE AGREEMENT- 2011A & 2011 B E 32-200-250-000-000 Attachment Check Register 08312014 (1481 Approval of Check Register No 08312014) 12400 95833 19227 47400 47400 1,25000 1 250 00 City of Grand Terrace Check History Listing August 1, 2014 - August 31, 2014 Check Check Vendor Invoice No / Invoice Invoice Amount Check No Date Account No Date Description Paid Total 70726 08/27/2014 001213 AT & T AUG/SEP 2014ATT 08/14/2014 AUG/SEP PHONE & INTERNET SRVS E 09-440-235-000-000 11563 E 10-190-235-000-000 51357 62920 70727 08/27/2014 001685 CALIFORNIA JOINT POWERS PRIM01068 05/13/2014 FY 2014-15 LIABILITY/WORK COMP INSURANCE B 10-016-80-00 79 397 00 B 10-016-81-00 71 642 00 151 03900 70728 08/27/2014 011137 CALPERS REPLACEMENT 100000014328380 07/07/2014 FY 2014-15 REPLACEMENT BENEFIT-SCHWAB BENEFIT B 10-017-00-00 5 978 89 5 978 89 70729 08/27/2014 001840 CITY OF COLTON 03112014 03/11/2014 WASTEWATER AGREEMENT PAYMENT E 21-570-250-001-000 1 200 000 00 1 200 000 00 70730 08/27/2014 001930 DAILY JOURNAL CORPORATION B2649657 07/31/2014 PUBLIC HEARING- HRGSB NOTICE E 10-125-230-000-000 62920 B2651322 08/11/2014 LANDSCAPE & LIGHTING ASSESSMENT PUBLIC E 10-190-250-000-000 17500 B2643125 07/11/2014 ELECTION NOTICE- SPANISH E 10-125-230-000-000 9680 B2643122 07/11/2014 ELECTION NOTICE E 10-125-230-000-000 8360 ,u 98460 d 0 cc w N a V Attachment Check Register 08312014 (1481 Approval of Check Register No 08312014) City of Grand Terrace Check History Listing August 1, 2014 - August 31, 2014 Check Check Vendor Invoice No / Invoice Invoice Amount Check No Date Account No Date Description Paid Total 725463894001 08/21/2014 OFFICE SUPPLIES E 10-140-210-000-000 7015 722013929001 07/30/2014 OFFICE SUPPLIES E 10-370-210-000-000 5273 710174276001 08/12/2014 OFFICE SUPPLIES E 10-370-210-000-000 4827 710174185001 08/13/2014 OFFICE SUPPLIES E 10-185-210-000-000 21 75 710174275001 08/12/2014 OFFICE SUPPLIES E 10-185-210-000-000 11 97 56960 70738 08/27/2014 006285 RIVERSIDE HIGHLAND WATER 2334 08/20/2014 AUG/SEP SEWER BILLING CO E 21-572-255-000-000 24584 24584 70739 08/27/2014 011284 SIEMENS INDUSTRY INC 5610005590 08/07/2014 JUL TRAFFIC SIGNAL MAINTENANCE E 16-510-255-000-000 70200 5620003382 08/07/2014 JUL TRAFFIC SIGNAL RESPONSE CALL E 16-510-255-000-000 53697 1 238 97 70740 08/27/2014 011071 WALT STANCKIEWITZ AUG2014WS 08/11/2014 AUG HEALTH INS REIM-STANCKIEWITZ E 10-110-142-000-000 39550 39550 '0 a� A (p lQ W N a' �O Attachment Check Register 08312014 (1481 Approval of Check Register No 08312014) O TITLE PRESENTED BY AGENDA REPORT September 23, 2014 Five -Year Measure I, Capital Improvement Plan 2014-2015 through 2018-2019 Sandra Molina, Community Development Director RECOMMENDATION (a) RESOLUTION NO 2014 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, STATE OF CALIFORNIA, ADOPTING THE FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM, (b) Approve the Measure I Capital Improvement Plan Expenditure Strategy for Fiscal Year 2014-2015 through Fiscal Year 2018-2019, and, (c) Approve the transfer of $256,290 from Measure I (Fund 20) to the Street Capital Improvement Fund (fund 46), and, (d) Appropriate the expenditure budget of $256,290 in the Street Capital Improvement Fund for the Barton Road Rehabilitation Project 2030 VISION STATEMENT This staff report supports Goal #2 "Maintain Public Safety" by investing in improvements to infrastructure BACKGROUND San Bernardino County voters approved passage of Measure I in November of 2004 authorizing San Bernardino Associated Governments (SANBAG), acting as the San Bernardino County Transportation Authority, to impose a one-half of one -percent retail transactions and use tax applicable in the incorporated and unincorporated territory of the County of San Bernardino DISCUSSION Measure I revenue can only be used for transportation improvement and traffic management programs authorized in the Expenditure Plans set forth in Ordinance No 04-01 and Ordinance 89-1 of the Authority The Strategic Plan and Expenditure Plan requires each local jurisdiction receiving Measure I local pass -through subventions to annually adopt a Five -Year Capital Improvement Program (CIP) Packet Pg 31 Table 2 Appropriation of Expense Budget Fund Type Fund Title Accounts Amount 46 Expense Capital Improvements Barton Road Rehab $256,290 - Streets Project (46-900-325- 000-000) This transfer and appropriation of Measure "I" funds does not have a fiscal impact on the General Fund ATTACHMENTS • Measure I CIP RESO 2014-2019 Grand Terrace • 2014-2019 MICIP - Grand Terrace -Revised 9-12-14(2) • 2014 MI CIP Expenditure Strategy -Grand Terrace I-1titi:Z6117-11 %' Sandra Molina Completed 09/12/2014 12 04 PM Finance Completed 09/15/2014 12 26 PM City Attorney Completed 09/15/2014 2 33 PM Community Development Completed 09/15/2014 3 07 PM City Manager Completed 09/15/2014 6 01 PM City Council Pending Packet Pg 33 APPROVED AS TO FORM Richard L Adams, II City Attorney I, DEBORAH A HARRINGTON, INTERIM CITY CLERK of the City of Grand Terrace, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council held on the 23rd day of September, 2014 by the following vote AYES NOES ABSENT ABSTAIN Deborah A Harrington Interim City Clerk Packet Pg 35 CITY OF GRAND TERRACE MEASURE I CAPITAL IMPROVEMENT PLAN EXPENDITURE STRATEGY Fiscal Year 2014/2015 — Fiscal Year 2018/2019 The City of Grand Terrace has adopted a Measure I expenditure strategy which focuses on the delivery of significant capital improvements on a pay-as-you-go basis The City intends to accumulate Measure I revenues for arterial improvements The City also plans to construct missing links, such as the Commerce Way extension, for vehicle capacity expansion as well as assistance with the Interstate 215 Barton Road Interchange improvements M LO v Packet Pg 37 0 AGENDA REPORT September 23, 2014 Council Item TITLE Update City of Grand Terrace Conflict of Interest Code PRESENTED BY Deborah Harrington, City Clerk RECOMMENDATION RESOLUTION NO 2014 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, RESCINDING RESOLUTION NO 2012-51 IN ITS ENTIRETY AND ADOPTING A CONFLICT OF INTEREST CODE APPLICABLE TO DESIGATED POSITIONS 2030 VISION STATEMENT This staff reports supports Goal No 5 in that the Conflict of Interest Code promotes transparency within the organization and community BACKGROUND The Political Reform Act requires every local government agency to review its Conflict of Interest Code biennially In reviewing the City's Conflict of Interest Code, staff identified a number of staff positions that should be included in the Code Those positions were included in the attached Resolution to properly reflect positions that may potentially have a material effect on his/her financial interest in the decision making process FISCAL IMPACT This item does not require an expenditure of funds ATTACHMENTS Resolution - Conflict of Interest Code 2014 APPROVALS Deborah Harrington Completed 09/11/2014 3 01 PM Finance Completed 09/15/2014 1142 AM City Attorney Completed 09/15/2014 12 04 PM City Manager Completed 09/15/2014 4 42 PM City Council Pending Packet Pg 38 City of Grand Terrace Resolution No 2014- EXHIBIT "A" Designated Employees The following is a listing of positions for which the employee is required to submit Statements of Economic Interest (Form 700) pursuant to the Political Reform Act of 1974 DEPARTMENTS / POSITIONS DISCLOSURE CATEGORIES City Attorney City Attorney Assistant City Attorney Deputy City Attorney City Manager City Manager 1 Assistant City Manager 1 Personnel Technician 2 City Clerk City Clerk Child Care Services Director of Child Care Services Community Development Department Community Development Director 1 Deputy Community Development Director 1 Management Analyst 2 Senior Code Enforcement Officer 2 Building Official 1 Senior Civil Engineer 1 Consultants* Finance Department Director of Finance/Treasurer 1 Project Manager 1 Senior Account Technician 4 Account Technician 4 Principal Accountant Fire Department Fire Chief or Designee to Grand Terrace Planning Commission Members Police Department Sheriff Captain assigned to Grand Terrace 1 Sheriff Lieutenant assigned to Grand Terrace 2 LO 0 N Packet Pg 40 City of Grand Terrace Resolution No 2014- CATEGORY EXHIBIT "B" City of Grand Terrace Conflict of Interest Code DISCLOSURE CATEGORIES Full Disclosure — All interests in real property as well as investments, business positions and sources of income, including gifts, loans and travel payments 2 Full Disclosure — (excluding interests in real property) — Investments and business positions and sources of income, including gifts, loans and travel payments 3 Interest in Real property — Interests in real property located in the city, including property located within a two mile radius of any property owned or used by the City 4 General Contracting — Investments, business positions and of income, N including gifts, loans and travel payments from sources that provide a leased facilities, goods, equipment, vehicles, machinery or services, G including training or consulting services, of the type utilized by the ID City Packet Pg 42 TITLE PRESENTED BY RECOMMENDATION AGENDA REPORT September 23, 2014 Council Item Appointments to the Emergency Operations Committee Sandra Molina, Community Development Director (a) Re -appoint Hanni Bennett and Susan Taylor to voting member positions with terms expiring on June 30, 2018, (b) Re -appoint Paul Tickner to a voting member position, with a term expiring on June 30, 2016, (c) Appoint Connie Parsons to a voting member position with a term expiring on June 30, 2018, and (d) Re -appoint Joe Ramos to an alternate member position with a term expiring on June 30, 2018 2030 VISION STATEMENT This item supports Our Mission "to preserve and protect our community and exceptional quality of life through thoughtful planning, within the constraints of fiscally responsible government" BACKGROUND The Emergency Operations Committee (EOC) is a Council -appointed Committee that meets on the First Tuesday of each month at 6 00 p m There are five (5) voting member positions and four (4) alternate member positions designated for the EOC Currently, four voting member positions expired on June 30, 2014, and one voting position remains filled by Vic Pfennighausen until June 30, 2016 One alternate member position expired on June 30, 2014 DISCUSSION Hanni Bennett's, Susan Taylor's and Paul Tickner's appointments expired on June 30, 2014 All three individuals have completed the attached forms indicating their desire to be re -appointed Ms Bennett and Ms Taylor have indicated their desire to be appointed for new four year terms, ending on June 30, 2018 Mr Tickner has indicated his desire to be re -appointed to a two year term This request is appropriate because it eliminates having four terms expire at the same time Packet Pg 43 Emergency Operations Committee Hanni Bennett V I would like to be considered for reappotritmerit to the Emergency Operations Committee for a four-year term to expire on June 30, 2018 Signature 1 do not wish to be considered for reappointment to the Emergency Operations Committee 7- t Date Please return this form no later than July 7, 2014 to the Csty Clerk's Office w C d E s e� am Packet Pg 45 Emergency Operations Committee Paul Tickner T_ I would like to be considered for reappointment to the Emergency (Q Operations Committee for a�year term to expire on June 30, 20/ I do not wish to be considered for reappointment to the Emergenc Operations Committee Signature 0, sH_ �i F. Please return this form no later than July 7, 2014 to the City Clerk's Office d E Zr Packet Pg 47 CITY OF GRAND TERRACE APPLICATION FOR GITIZEN SERVICE r`.Ri'j�Q TErtr:ACt Please complete and submit to the City Clerk's Department $ L Applying as a member of i y o L L� t ;`� � � 7t C i� � j4 t 1- Name �1 S W L RA Address % �? tZ A N J T C r"r A C C. ( 3 3 T 3 Home Phone Business Phone MIA Occupation G 1 t R•f^ u Education (List highest year completed and all deg(ees) .-Ii r 1 )Z1 S Lei nr=htZA� E Are there any workday evenings you could not meets ( ) Yes (t,)/No ff so please list Why, are you interested in this appointments t o r- r i k 1 h �c i� i� S 'n (z to r1 � J r, J:jL What do you consider to beyour major qualificalionsl _ F z2 a [`rt L i Cv iL tk J c: C i4 T�, i - , F Ri I R N% f3 LOP, Fr --A, I ri m r--Ri,iiY _ n ,sty �1AA r ti i c� vtC�` L =h t'#IX) co') 11r5 1601 *1,!?a ] tab .`SOU , 30_ njit RePerei L' s Cl ` L n t2 �'c {� rl �` IZti 7 L V t: t L 1� hi t ( � A n jnt r" 1tr-f,k t n;°Z Af4,t__i r I U r RAlyci iC-rrgr,C 2 17f) k t�SJ �t2t�,�l�irrllCL", ��_CA Please attach a written statement containing any additional information you feet would be useful to the City Council P1 Packet Pg 49 January, 2008 Awarded Amateur (HAM), "General" Class license by Federal Communications Commission. Forty hours February, 2009 Completed "Community Emergency Response Team," (CERT) "Train the Trainer" course Approximately 20 hours December, 2009 Completed Incident Command System, (ICS) courses 100, 200 and 700. Federal Emergency Management Agency, FEMA Nine hours November, 2011 Appointed volunteer "Skywarn" Weather Spotter. SBD, 712. National Weather Service December, 2011 Completed "Patrol First Response for Missing and Abducted Children," U S Department of Justice, Office of Justice Programs Six hours April, 2012 Completed Federal Emergency Management Agency, FEMA, course "Fundamentals of Emergency Management", IS-00230b Ten hours July, 2012 Completed Federal Emergency Management Agency, FEMA, course "Developing and Managing Volunteers," IS-244 a Four hours April, 2013 Completed Federal Emergency Management Agency, FEMA, course IS-907, "Active Shooter, What You Can Do " Four hours 2 Packet Pg 51 O TITLE PRESENTED BY AGENDA REPORT September 23, 2014 Council Item Amendment to Chapter 8 104 of Title 8 and Chapter 12 32 of Title 12 Related to Smoking Prohibitions Sandra Molina, Community Development Director RECOMMENDATION Adopt ORDINANCE NO 2014- , AN ORDINANCE OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING CHAPTER 8 104 OF TITLE 8 AND CHAPTER 12 32 OF TITLE 12 RELATING TO SMOKING PROHIBITIONS 2030 VISION STATEMENT This staff report supports Goal #2 "Maintain Public Safety" by ensuring smoke free zones in public parks and facilities It also supports the City's recent Healthy Cities designation by the County of San Bernardino Department of Public Health BACKGROUND On September 9, 2014, the City Council conducted a first reading and introduced the proposed Ordinance amending Chapter 8 104 and Chapter 12 32 relating to smoking prohibitions Second reading is now required DISCUSSION There have been no changes to the proposed Ordinance since the first reading on September 9, 2014 Staff recommends the adoption of the proposed Ordinance The Ordinance will go into effect 30 days after it is adopted by the City Council FISCAL IMPACT There is no fiscal impact related to this item ATTACHMENTS • Ordinance 275 - Smoking Regulations APPROVALS Sandra Molina Completed 09/10/2014 6 23 PM Finance Completed 09/11/2014 12 41 PM City Attorney Completed 09/11/2014 12 59 PM Community Development Completed 09/11/2014 2 02 PM Packet Pg 53 ORDINANCE NO 2014-275 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING CHAPTER 8104 OF TITLE 8 AND AMENDING CHAPTER 12 32 OF TITLE 12 OF THE GRAND TERRACE MUNICIPAL CODE RELATING TO SMOKING PROHIBITIONS WHEREAS, smoking and secondhand smoke is responsible for the premature deaths of hundreds of thousands of Americans each year from lung cancer, heart disease, respiratory illness, and other diseases, and WHEREAS, the U S Surgeon General has declared that nicotine is addictive as cocaine and heroin, and WHEREAS, nicotine is a highly addictive neurotoxin and is included in the Prop 65 list of Chemicals Known To The State To Cause Cancer Or Reproductive Toxicity Nicotine is known to cause birth defects and is particularly dangerous for vulnerable populations including children, pregnant women and people with cardiovascular conditions, and WHEREAS, the U S Food and Drug Administration announced that a laboratory analysis of electronic cigarette samples has found that they contain carcinogens and toxic chemicals such as diethylene glycol, an ingredient used in antifreeze, and WHEREAS, these products are marketed and sold to young people and are readily available online and in shopping malls These products are available in different flavors, such as chocolate and mint, which may appeal to young people In addition, these products do not contain any health warnings comparable to FDA -approved nicotine replacement products or conventional cigarettes, and WHEREAS, the Los Angeles County Department of Public Health supports amending local smoke -free policies to include e-cigarettes because "studies indicate that e-cigarettes pose potential dangers for users, as well as for non -users who passively inhale these chemical vapors" and WHEREAS, the City Council of the City of Grand Terrace supports policies that focus on and improve the health and wellness and healthier lifestyles in all communities, and WHEREAS, the City of Grand Terrace has received the "Healthy Cities" designation from the County of San Bernardino Department of Public Health on April 14, 2014, and Packet Pg 55 �7a Ordinance No 2014-275 Page 3 of 9 8 104 010 Definitions For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them A "Bar" means an area which is devoted to serving of alcoholic beverages and in which the serving of food is only incidental to the consumption of such beverages B "Eating establishment" means every publicly or privately owned eating place, including coffee shops, cafeterias, short-order cafes, luncheonettes, sandwich shops, soda fountains and restaurants C "Electronic smoking device" means any device that delivers vapors for inhalation of tobacco products This term shall include every variation and type of such devices whether they are manufactured, distributed, marketed or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah or any other product name or descriptor D "Employee" means any person who is employed by an employer for direct or indirect monetary wages or profit E "Employer" means any person who employs the services of an individual person or employee F "Enclosed" means closed in by a roof and four walls with appropriate openings for ingress and egress, but does not include areas commonly described as public lobbies G "Motion picture theater" means any theater engaged in the business of exhibiting motion pictures H "Smoking" means the use of any cigar, cigarette, pipe, electronic smoking device, or any other similar article, using any form of tobacco, tobacco product, or other combustible substance in any form "Workplace" means any enclosed area of a structure or portion thereof intended for occupancy by business entities which will provide primarily clerical, professional or business services of the business entity, or which will provide primarily clerical, professional or business services to other business entities or to the public at that location Workplace includes, but is not limited to, office spaces in office buildings, medical office waiting rooms, libraries, museums, hospitals and nursing homes J "Park" means any community park, neighborhood park, special use or other park, and any open space area maintained by the City Page 3 of 9 Packet Pg 57 Ordinance No 2014-275 Page 5of9 auditorium or facility, and in the case of motion picture theaters, such information shall be shown upon the screen for at least five seconds before showing feature motion pictures 8 104 060 Smoking prohibited —Eating establishments Smoking is prohibited and is unlawful in all indoor eating establishments serving food, which have an occupancy capacity of fifty or more persons This prohibition shall not apply to any establishment maintaining a contiguous nonsmoking area of at least one - quarter of the seating capacity This prohibition shall not apply to any rooms which are being used for eating establishment purposes for private functions If a smoking area is maintained, the preference for the patron is to be determined by the management and the patron shall be seated according to the preference if possible Any portion of an indoor eating establishment used for bar purposes is excluded from the restrictions of this section 8 104 070 Smoking prohibited —Department stores Smoking is prohibited and is unlawful in public areas of every department store which sells dry goods, clothing or utensils, excluding areas outdoors 8 104 080 Smoking prohibited —City buildings and facilities A Except in such places in which smoking is already prohibited by State or Federal law, in which case the State or Federal law applies, smoking shall be prohibited in the following areas 1 In any City building or facility 2 Within 20 feet of any entrance, exit, operable windows, or ventilation ducts of any City building or facility 8 104 090 Smoking prohibited — City parks and other recreation areas Smoking shall be prohibited in any outdoor area that has been improved or developed by or on behalf of the City, and open to the general public for park or open space use, including, but not limited to public parks, picnic areas, playgrounds, sports or playing fields, walking paths, gardens, hiking trails, bike paths, and any other areas designated a park by the Director of Community Development 8 104100 Smoking Waste It is unlawful to dispose of lighted or unlighted cigars, cigar butts, cigarettes, cigarette butts, pipes, electronic smoking devices, or any other similar article used for smoking in o the boundaries of an area where smoking is prohibited, other than in designated waste receptacles Page 5 of 9 Packet Pg 59 Ordinance No 2014-275 Page 7of9 G An employer who in good faith develops and promulgates a reasonable written policy regarding smoking and nonsmoking in the workplace shall be deemed to be in compliance provided that a policy which designates an entire workplace as a smoking area shall not be deemed a reasonable policy 8 104 120Posting and signs required A Except where other signs are required, whenever smoking is prohibited, conspicuous signs shall be posted so stating, containing all capital lettering not less than one inch in height and/or the international no smoking logo, on a contrasting background It is the duty of the owner, operator, manager or other persons having control of such room, building or other place where smoking is prohibited, to post such signs or to cause such signs to be posted B It is unlawful to willfully mutilate or destroy any signs required by this section 8 104130 Prohibition of electronic smoking device use in smoke -free places and other regulations A It shall be a violation of this chapter to use an electronic smoking device in any place within the city where smoking is prohibited by law B No person or entity shall knowingly permit the use of electronic smoking device in a an area under the legal or de facto control of that person or entity and in which smoking is prohibited by law r C All other regulations and prohibitions contained in this chapter relating to tobacco products shall apply the same to electronic smoking devices 8 104140 Other agency cooperation Federal, state, county, school and special district officials are urged to enact and enforce provisions similar to the provisions of this chapter 8 104150 Structural modifications not required A It shall be the responsibility of employers to provide smoke -free areas for nonsmokers within existing facilities to the maximum extent possible, but employers are not required to incur any expense to make structural or other physical modifications in providing these areas B Nothing in this chapter shall require the owner, operator or manager of any E theater, auditorium, health care facility or any building, facility, structure or o business to incur any expense to make structural or other physical modifications to any area or workplace £ s �a w a Page 7 of 9 Packet Pg 61 Ordinance No 2014-275 Page 9of9 I, Deborah A Harrington, Interim City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Ordinance was introduced at a regular meeting held on the day of September and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the day of September, 2014, by the following vote AYES NOES ABSENT ABSTAIN Deborah A Harrington Interim City Clerk Lo Irl it Page 9 of 9 Packet Pg 63 TC } AGENDA REPORT September 23, 2014 Council Item TITLE Repeal Resolution No 2014-22 and Adopt a New Resolution for Parking Restrictions on Westwood Lane and Paint Red Curb PRESENTED BY Sandra Molina, Community Development Director RECOMMENDATION RESOLUTION NO 2014 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE RESCINDING RESOLUTION NO 2014-22 AND AUTHORIZING THE FIRE CODE OFFICIAL TO PROHIBIT PARKING OF VEHICLES ON THE SOUTH EAST SIDE AND ENTIRE CUL-DE-SAC AREA OF WESTWOOD LANE 2030 VISION STATEMENT This staff report supports Goal #2, "Maintaining Public Safety" by providing emergency vehicle access for Grand Terrace residents BACKGROUND The City Council on June 24, 2014 adopted Resolution No 2014-22, designating the west side of Westwood Lane, and the entire turn -around area at the end of the cul-de- sac, as "No Parking" - Fire Lane" areas On August 28, 2014, City staff was contacted by Captain Noble of the San Bernardino County Fire Department, Grand Terrace Station, with a new recommendation for "No Parking - Fire Lane" designation on Westwood Lane This new recommendation is in response to recent emergency service vehicles accessing Westwood Lane DISCUSSION The San Bernardino County Fire Department Grand Terrace Station has responded to recent calls for service on Westwood Lane After accessing Westwood Lane and reviewing the current and adopted restricted parking designations, Captain Noble and Jeff Stinson with the San Bernardino County Fire Department have revised their recommendation to, instead, restrict parking on the southeast side of Westwood Lane and the entire turn -around area In addition to requesting "No Parking - Fire Lane" signs posted on the south east side of Westwood Lane, they have also requested a red curb in front of the fire hydrant on the south west corner of Westwood Street and Westwood Lane This will allow emergency Packet Pg 64 RESOLUTION NO 2014- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE RESCINDING RESOLUTION NO 2014-22 AND AUTHORIZING THE FIRE CODE OFFICIAL TO PROHIBIT PARKING OF VEHICLES ON THE SOUTH EAST SIDE AND ENTIRE CUL-DE-SAC AREA OF WESTWOOD LANE WHEREAS, vehicles are parking on the south east side and entire cul-de-sac area of Westwood Lane obstructing emergency services and fire apparatus accessibility on Westwood Lane, WHEREAS, the Fire Code Official for the City of Grand Terrace has investigated this street and intersection and has provided a report and a recommendation to prohibit parking at this location to the City Council, and WHEREAS, pursuant to the Grand Terrace Municipal Code, Section 15 18 010, the City Council may determine upon the basis of the Fire Code Official's investigation, that it is necessary to prohibit stopping, standing or parking of vehicles on fire access roads and portions thereof NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Grand Terrace, as follows SECTION 1 The City Council finds and determines that the foregoing recitals are true and correct SECTION 2 The City Council hereby rescinds Resolution No 2014-22 SECTION 3 The City Council finds and determines the attached Fire Code Official's recommendation to insure fire apparatus accessibility on Westwood Lane is reasonable and necessary to insure the safety of residents residing on and adjacent the street SECTION 4 The City Council hereby directs the Fire Code Official to prohibit parking on the southeast side and entire cul-de-sac on Westwood Lane by posting or painting "No Parking — Fire Lane" as stated in Exhibit 1 Fire Code Official's Report attached hereto Page 1 of 3 Packet Pg 66 v n CL cc) CD o w o �w v cc m UAttachment Westwood Lane Resolution No 2014- [Revision 1] (1558 Westwood Lane Parking Restriction Changes) m x CO m AGENDA REPORT September 23, 2014 Council Item TITLE Temporary Moratorium on the Expansion or Establishment of Electronic Cigarette Retail Businesses, Smoke Shops and Vapor Lounges PRESENTED BY Sandra Molina, Community Development Director RECOMMENDATION Read by Title only, waive further reading and adopt ORDINANCE NO 2014- , AN INTERIM URGENCY ORDINANCE OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTED PURSUANT TO GOVERNMENT CODE SECTION 65858 FOR A TEMPORARY MORATORIUM ON THE EXPANSION OF EXISTING OR THE ESTABLISHMENT OF NEW TOBACCO AND ELECTRONIC CIGARETTE RETAIL BUSINESSES, SMOKE SHOPS, AND VAPOR LOUNGES FOR A PERIOD OF 45 DAYS PENDING A STUDY OF ZONING REGULATIONS THAT ARE NEEDED TO ALLEVIATE A CURRENT AND ACTUAL THREAT TO THE PUBLIC HEALTH AND SAFETY 2030 VISION STATEMENT This staff report supports Our Mission "to preserve and protect our community and exceptional quality of life through thoughtful planning, within the constraints of fiscally responsible government" BACKGROUND/DISCUSSION The City's Community Development Department has received several inquiries in the recent past regarding the establishment of smoke shops and vapor lounges Tobacco retailers, electronic cigarette retailers and vapor lounges within the City present unique challenges to local government because the Grand Terrace Municipal Code does not, currently, define or regulate these types of land uses Smoke shops are permitted within certain zones of the Barton Road Specific Plan but are not otherwise regulated In the absence of specific standards and zoning regulations pertaining to tobacco retailers, electronic cigarette retailers, smoke shops and vapor lounges, it is difficult to mitigate the secondary impacts generated by these establishments As a result, many California cities have adopted tobacco and electronic cigarette retailer licensing ordinances, including Los Angeles, Long Beach, Dublin, Concord, Richmond, Albany and Oakland At the September 9th City Council meeting, the City Council conducted a public hearing r Packet Pg 71 } ORDINANCE NO 2014- AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, FOR A TEMPORARY MORATORIUM ON EXPANSION OF EXISTING OR THE ESTABLISHMENT OF NEW TOBACCO AND ELECTRONIC CIGARETTE RETAIL BUSINESSES, SMOKE SHOPS, AND VAPOR LOUNGES FOR A PERIOD OF 45 DAYS PENDING A STUDY OF ZONING REGULATIONS THAT ARE NEEDED TO ALLEVIATE A CURRENT AND ACTUAL THREAT TO THE PUBLIC HEALTH AND SAFETY WHEREAS, the City of Grand Terrace ("City") has adopted a General Plan, including a Land Use and Community Design Element, and WHEREAS, state law requires that the City's Zoning Code (Title 18 of the Grand Terrace Municipal Code) conform with the General Plan's goals and policies, and o� WHEREAS, the public health, safety and welfare is fully articulated in the City's General Plan, and WHEREAS, in order for the immediate protection of the public health, safety and welfare, and pursuant to Government Code Section 65858, a moratorium is hereby placed on the expansion of existing or establishment of new tobacco and electronic cigarette retailers, smoke shops, and vapor lounges in the City of Grand Terrace WHEREAS, the City of Grand Terrace has not adopted a moratorium on the expansion, establishment or operation of tobacco and electronic cigarette retail establishments, smoke shops and vapor lounges prior to this urgency ordinance WHEREAS, Government Code Section 65858 provides for the adoption, as an urgency measure, interim ordinances for certain expressed purposes and by a vote of four -fifths (4/5) majority of the voting City Council members WHEREAS, this moratorium shall remain in effect for forty-five (45) days and may be extended, after notice and public hearing, for an additional ten (10) months and fifteen (15) days 0 WHEREAS, this urgency ordinance is based on the following facts �a 1 The City of Grand Terrace has the authority, under its police power, to enact regulations for the public peace, morals, and welfare of the City, and o 2 Tobacco retailers, electronic cigarette retailers and vapor lounges within the City of Grand Terrace present unique challenges to local government because the Grand Terrace Municipal Code does not currently define or a Packet Pg 73 Ordinance No 2014-275 Page 3of6 9 Many California cities have adopted tobacco and electronic cigarette retailer licensing ordinances, including Los Angeles, Long Beach, Dublin, Concord, Richmond, Albany and Oakland 10 Government Code Section 65858 allows cities to adopt an interim zoning ordinance prohibiting any uses which may be in conflict with a contemplated general plan, specific plan or zoning proposal which is in the process of being considered by the Planning Agency, Planning Commission, or legislative body, and 11 The City needs additional time to (1) address the City's concerns regarding the establishment and operation of tobacco and electronic cigarette retailers, (2) study the potential impacts that these businesses may have on the public health, safety and welfare, (3) study and determine what local regulations may be appropriate or necessary for these retailers, (4) study and determine the appropriate zoning and location for these retailers, and (5) determine appropriate controls for the protection of the public health and welfare 12 The City's General Plan contains Goals 2 1 and 2 3, which seek to establish balanced commercial growth and a wide range of diversified retail and commercial opportunities The lack of or minimal regulations governing tobacco retailers, electronic cigarette retailers, smoke shops and vapor lounges frustrates the stated purposes of the General Plan by allowing these businesses to operate and proliferate unchecked to the detriment of balanced commercial growth in the City 13 For the reasons set forth above, this Ordinance is necessary to preserve the public health, safety and welfare and to avoid a current and immediate threat to the health, safety and welfare of the community NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES HEREBY ORDAIN AND ADOPT BY AT LEAST A FOUR -FIFTHS VOTE THIS INTERIM ZONING AND URGENCY MEASURE PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65858 AS FOLLOWS SECTION 1 After the effective date of this ordinance, no permit or any other applicable license or entitlement for use, including the issuance of a business license, business permit, building permit, use permit or zoning text amendment shall be approved or issued for the expansion of existing, or the establishment of new tobacco retailers, electronic cigarette retailers, smoke shops or vapor lounges in the City of Grand Terrace New tobacco retailers, electronic cigarette retailers, smoke shops and vapor lounges are hereby prohibited Expansion shall also include any amendment to an existing entitlement or permit Packet Pg 75 r 9a Ordinance No 2014-275 Page 5 of 6 welfare as previously stated in this ordinance, and that this ordinance shall become effective immediately upon its adoption and will continue in full force and effect until the end of 45 days from its effective date unless its effectiveness is extended in accordance with Government Code 65858 SECTION 4 ENVIRONMENTAL DETERMINATION This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA guidelines, and the City's environmental procedures, and has been found to be exempt pursuant to Section 15061 (b)(3) (General Rule) of the CEQA Guidelines, in that the City Council hereby finds that it can be seen with certainty that there is no possibility that the passage of this Ordinance will have a significant effect on the environment SECTION 5 INCONSISTENCIES Any provision of the Grand Terrace Municipal Code or appendices thereto that are inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to the extent necessary to effect the provisions of this Ordinance SECTION 6 HARDSHIP WAIVER The moratorium established herein shall not be applicable if a request for exception due to hardship, or other unique circumstances that have arisen as a result of this ordinance is approved by the City Manager of the City of Grand Terrace Any request for exception shall be in writing and shall articulate the reasons for the request The request shall be filed with the City Clerk The matter shall be heard through a public hearing and may be appealed to the City Council for a de novo public hearing The waiver shall not be granted unless the requestor can demonstrate the need for a waiver by clear and convincing evidence A hardship waiver shall not be unreasonably withheld SECTION 7 SEVERABILITY If any provision or clause of this ordinance or the application thereof to any person or circumstances is held to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other provisions or clauses or applications of this ordinance which can be implemented without the invalid provision, clause or application, and to this end, the provisions of this ordinance are declared to be severable SECTION 8 PUBLICATION The City Clerk shall post this Ordinance in three (3) public places within fifteen (15) days of its adoption, as designated for such purposes by the City Council This ordinance shall become effective immediately from and after its passage Packet Pg 77 AGENDA REPORT September 23, 2014 Council Item TITLE Agreement to Provide Utility Bill Auditing Services PRESENTED BY Emily Wong, Interim Assistant City Manager RECOMMENDATION Approve the agreement between the City of Grand Terrace and Utility Cost Management LLC to provide utility bill auditinq services 2030 VISION STATEMENT This staff report supports Goal #1, Ensuring Fiscal Viability by providing utility auditing services that may assist the City in obtaining refunds, credits or future savings in utility costs BACKGROUND The City of Grand Terrace currently pays approximately $170,000 per year in electric bills from Edison Utility regulations are complex, voluminous and ever changing Existing staff does not have the necessary expertise and time to ensure that the City is billed correctly and/or that the City is being charged the most advantageous rate DISCUSSION Utility Cost Management, LLC (UCM) assists a variety of cities and other public entities, educational institutions, non-profit organizations, as well as for -profit businesses, to reduce utility expenses through the informed application of utility regulations Utility Cost Management will review a utility bill to uncover any billing errors and ensure the City is taking advantage of the lowest billing rates available Utility Cost Management will use its best efforts to identify and set forth in a "Findings Letter", any basis for any refunds, credits, or future savings The proposed agreement authorizes UCM to review the City's monthly electrical bill and if, appropriate, take steps to obtain refunds, credits or future savings by communicating, negotiating and dealing directly with the utility provider If UCM obtains a refund or credit that was identified in the Findings Letter, the City will pay UCM 47% of the refund or credit If UCM obtains future savings that were identified in the Findings Letter, the City will pay UCM 47% of such Future Savings that accrue during a Three -Year Savings Period In all cases, no compensation will be paid to UCM prior to the City receiving a refund, credit or future savings Pursuant to the agreement, the City may, in the future, also elect to have other types of utility bills audited/reviewed in a similar manner For your information, attached is copy of the proposed agreement, UCM brochure, _Packet Pg 79 10a AGREEMENT TO PROVIDE UTILITY BILL AUDITING SERVICE This agreement is made by and between Utility Cost Management LLC ("UCM") and the entity signing below ("Client") as follows Applicable to Client's Utility Accounts Unless otherwise stated in an addendum initialed by both parties, this Agreement will apply to all electrical utility accounts, and may apply, upon Client's request, to water, sewer, garbage, gas accounts (and any related utility user taxes, other taxes, assessments, surcharges or fees) with respect to which Client (a) is receiving utility service as of the Effective Date (as defined below), (b) has received utility service within three years prior to the Effective Date, (c) receives utility service within one year after the Effective Date, or (d) has permitted or authorized UCM to obtain a copy of the utility bill The water, sewer, garbage, gas and electric accounts described in this paragraph are hereinafter collectively referred to as "Utility Accounts" The "Effective Date", as that term is used above, is the first day of the calendar month after both UCM and Client have signed this Agreement 2 Client to Provide Utility Bills On or promptly after Client's execution of this Agreement, Client will provide UCM with a copy of at least one month's utility bills for the electrical utility account and for each utility the Client chooses to have audited 3 UCM Authorized to Obtain Information on Utility Accounts UCM is hereby authorized to obtain and review information relating to the Utility Accounts If site visits are necessary, UCM will first obtain proper authorization 4 UCM's Findings Letter UCM will use its best efforts to identify the basis for any refunds, credits or Future Savings (as d defined below) on Client's Utility Accounts UCM will send one or more a "Findings Letters" to Client that generally sets forth the basis for any refunds, credits or Future Savings identified by UCM UCM may, from time to time, Q supplement or amend the Findings Letter c U) 5 Steps to Obtain Refunds or Savings UCM is authorized by Client to take steps to obtain the refunds, credits or Future Savings identified in the Findings Letter Such steps may include, but are not limited to, communicating, negotiating and M dealing with utility providers (or, in the case of utility user taxes or other governmental charges, the appropriate > government entity), and seeking relief from the California Public Utilities Conmussion in a complaint proceeding or other proceeding 6 Cooperation By Client Client will cooperate with UCM, as reasonable, in UCM's efforts to carry out the purposes and intent of this Agreement Such cooperation will include, but not be limited to, providing information upon request by UCM concerning Client's utility expenditures, utility service and operations 7 UCM's Compensation UCM's compensation will consist of the amounts set forth in both (a) and (b) below (a) Refunds or Credits If Client receives a refund or credit that was identified in the Findings Letter, then Client will V pay to UCM 47% of the amount refunded or credited The amount of the refund or credit for this purpose will 1. include all amounts refunded or credited (including any portion attributable to interest) for any overcharges that were 0 incurred by Client prior to the date that the overcharges no longer appeared on the Client's utility bill Payment of W! UCM's 47% compensation is due within 60 days of the date UCM mails an invoice to Client w (b) Future Savings If Client obtains Future Savings that were identified in the Findings Letter, then Client will pay m UCM 47% of such Future Savings that accrue during a Three -Year Savings Period "Future Savings" is the amount by which Client's charges on its Utility Accounts are reduced as a result of a change in the billing rate, calculation, method or procedure Future Savings will be calculated as the difference between the amount Client was billed on Q its Utility Accounts during the Three -Year Savings Period, and the amount that it would have been billed on its Utility Accounts during the Three -Year Savings Period if there had been no change in its billing rate, calculation, method or procedure The Three -Year Savings Period begins on the date that the change in the billing rate, calculation, method or procedure is first reflected on Client's utility bill, and ends three years thereafter UCM will 1 Initials Initials Packet Pg 81 10a of the date the invoice was mailed to Client, then a fee equal to 5% of the amount owing (including any accrued interest) will be unposed on the 9 1 " day after the invoice was mailed Interest will continue to accrue at 1% per month (prorated on a daily basis) on the entire amount due until paid in full 15 Applicable Law This Agreement is executed in and intended to be performed in the State of California, and the laws of that state will govern its interpretation and effect 16 Venue Venue in any legal action arising from or related to this agreement will be San Bernardino County, California 17 Paragraph References A reference to a "paragraph' of this Agreement includes both the numbered paragraph, as well the subparagraphs, if any, that are part of such paragraph Subparagraphs are designated by lower case letters (e g , "(a)", "(b)", 11(c)") 18 SelJverabdity If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the rest of the agreement shall remain in full force and effect and shall in no way be affected, unpaired or mvalidated 19 Interpretation In construing this Agreement, no consideration shall be given to the fact or presumption that any party had a greater or lesser hand in drafting of this Agreement 20 Entire Agreement This instrument contains the entire Agreement of the parties relating to the rights granted and obligations assumed in this instrument Any oral representations or modifications concerning this instrument shall be of no force or effect unless contained in a subsequent written modification signed by the party to be charged 21 Signor Authorized to Bind Client The individual signing this agreement on behalf of Client hereby represents and warrants that he/she is authorized to sign on behalf of the Client and to legally bind Client to the terms of this Agreement UTILITY COST MANAGEMENT LLC Im Signature Print Name Title Date Print Client Name Above By Signature Print Name Title Date 0 LO Ln Initials Initials Packet Pg 83 10b When it comes to your utility bills, you can't afford to be in the dark. Electricity, gas, water, sewer and garbage regulations are complex, voluminous and ever -changing Utility providers must apply these regulations to literally millions of customers, each with unique facilities, usage characteristics and other billing inputs that are in constant flux Not surprisingly, billing errors ale common For customers, understanding and applying the relevant regulations is difficult and time-consuming, so they often pay the overcharges month after month, year after yeas Ovei time, these overcharges result in significant additional costs — costs that your organization can eliminate with the right help Packet Pg 85 10b Advantages of the Bill Analysis ServicesM Risk -free The Bill Analysis ServiceSM is truly a "win -win" for the customer If you are being overcharged, then UCM will identify and correct the situation, and share in the resulting savings But if no overcharge is found, then you pay UCM nothing Hassle -free We recognize that your time is valuable That's why the Bill Analysis Servicesm is performed with minimal involvement from you and your staff Even your historical billing records are obtained directly from the utility, eliminating the need for you to copy large numbers of bills In-depth With its Bill Analysis ServiceSM, UCM does much more than just review your bills It researches, applies and interprets the complex regulations upon which your bills are based to ensure that you are not paying more than is required UCM' s command of the of the rates and regulations helps you to make sense of the arcane rules that determine how much you pay on your utility bills Packet Pg 87 Since 1991, Utility Cost Management LLC has About UCM. It's easy to been helping clients to reduce utility expenses l • through the informed application of utility regulations. It has generated $90 million in refunds and savings for. a wide variety of clients, including public entities, educational institutions, residential and commercial real estate owners and managers, hospitals, manufacturers, food processors, farmers, hotels, and non-profit organizations. Over the years, UCM has developed a record of accomplishments and distinction. The firm has represented customers in several landmark proceedings before the California Public Utilities Commission, which have altered the way electric utility companies interpret and apply their own rates. It has been a driving force in the formulation and adoption of new regulations that have benefitted utility customers throughout the State. And its work has been the impetus for change in the way that many municipal utilities impose and collect water fees, sewer fees, and utility user taxes. The firm's record of success is attributable to the talented and hard- ' working people who make up UCM. The firm's principals have spent their ' careers analyzing the ins and outs of utility rates and charges, and offer clients a level of knowledge, experience and expertise that is unmatched. And the firm's professional staff brings to bear experience, commitment and a i "can do" philosophy that shows in the results they achieve. 10b CITY Of LAGUNA NIGUEL 30111 Crown Valley Parkway • Laguna Niguel, California 92677 Phone/949.362.4300 Pax/949.362.4340 January 22, 2014 Michael Kerkorian Utility Cost Management LLC 6475 N Palm Avenue, Suite 105 Fresno, CA 93704 Re, Recommendation of UCM's Services Dear Michael CITY COUNCIL Laurie Davies Linda Lindholm Jerry McCloskey Robert Ming Jerry Shisiewicz The City of Laguna Niguel has been very pleased with UCM's work to reduce the city's utility costs Your firm has been able to uncover and implement significant cost -reduction opportunities without requiring involvement from city staff, and without up -front costs Electricity refunds .and savings of more than $50,000 already have been obtained, and we expect ongoing annual savings of more than $150,000 to accrue for many years to come I have been impressed with UCM's ability to work with SDG&E and Southern California Edison to get the desired changes approved, despite the utilities' initial rejection of your requests For most of 2013, UCM worked through each utility objection, until finally, late in the year, the changes were approved It is clear that UCM's experience, knowledge and perseverance were essential in getting the rate reductions approved I'm pleased to recommend UCM's services, and look forward to continue working with you Regards, Stephen Erlandson Director of Finance Packet Pg 91 (seoweg 6uilipny ilia Apilin epiAWd 011ueuteeea6V 0(j96) [4 uotsiAGN] einpoiq won W811143ePV Rhonda Reardon `30 C*t-TT I ®� issl®n Vie o® Trsh'Kellei k1a)o) P10 Tem Dare Leckness Council Member Administrative Sei vices Department Cath3 schlicht Council Membe? Frank Uri Counctl Member October 23, 2013 Michael Kerkorian Utility Cost Management LLC 6475 N Palm Avenue, Suite 105 Fresno, CA 93704 To Whom It May Concern The City of Mission Viejo began working with Utility Cost Management in early 2010 UCM analyzed the city's SDG&E and SCE bills, identifying more than twenty separate accounts that were being overcharged Initially, the city's utility providers rejected some of the rate reductions that UCM requested But UCM persevered, proved its findings were correct, and eventually nearly all of the reductions were approved Today, the City of Mission Viejo is saving more than $25,000 per year as a result of UCM's work Obtaining these savings has required virtually no time from city staff Over the past two years, UCM has continued to work with the city on potential opportunities to further reduce utility costs The city is in the process of evaluating another UCM proposal that may generate significant additional savings During the time I have worked with UCM, I have been impressed with the quality of the firm's work, its knowledge of utility and regulatory issues, and its commitment to providing excellent service I enthusiastically recommend UCM to other cities that are looking for ways to manage utility costs Sincerely, Qry Dyas Director of Administrative Services City of Mission Viejo 200 Civic Center o Mission Vino, Calitoinia 92691 htto //www cityofmussionvielo org Cl) CD Im IL J9 U C9 a 949 470-3059 FAX 949-581-3528 za 10b May 20, 2010 Chris Wiehl Utility Cost Management LLC 6475 N Palm Avenue, Suite 105 Fresno, CA 93704 Dear Mr Wiehl Utility Cost Management LLC (UCM) was retained by the City in 2009 to analyze its utility bills As a result of UCM's work, the City's Southern California Edison (SCE) bills have been reduce by more than $100,000 per year, and these savings will continue for many years to come I am please to provide this letter of recommendation for UCM These results were achieved without any up -front costs or time from my staff UCM maneuvered through the maze of tariffs and regulations that City accounts were billed under and identified incorrect charges The process was easy and efficient The UCM staff was professional, effective and worked quickly & diligently Thank you again for helping the City reduce its utility costs Sincerely, Stephen Dunn Director of Finance CITY OF UPLAND 931 9923 s TDD (apo} 735 2929 • www ci upland ca us Musser Tom Thomas, KenncthW Willis •I packet Pg 95 10b �P ' ®- CITY OF CLAREMONT 1616 Monte Vista Avenue Claremont, CA 91711-2913 FAX (909) 445-7822 www ci claremont ca us June 9, 2010 Chris Wiehl Utility Cost Management LLC 6475 N Palm Avenue, Suite 105 Fresno, CA 93704 Dear Chris, Community Services Department Director a (909) 399-5432 Trees a (909) 399-5431 Maintenance a (909) 399-5431 Solid Waste 4 (909) 399-5431 Oak Park Cemetery • (909) 399-5487 I am writing this letter to compliment Utility Cost Management LLC (UCM) for the outstanding work they performed for the City of Claremont During the past year, UCM has worked on analyzing the utility bills for the City and provide recommendations on how to recapture and reduce our utility costs Through their efforts, the City has realized significant cost reductions in its Southern California Edison (SCE) bills These results were achieved with no up -front costs and little involvement from City personnel UCM has displayed a high degree of professionalism and tact in dealing with SCE on our behalf UCM has been thorough, conscientious, and reliable in performing its work Based on our experience, I would not hesitate to recommend UCM to others Sincerely, Stacey Niemeyer Management Analyst Packet Pg 97 �Y-IFOWri June 21, 2006 Michael Kerkorian Utility Cost Management LLC 726 W Barstow Avenue, Suite 108 Fresno, CA 93704 Dear Michael CITY OF NEWPORT BEACH ADMINISTRATIVE SERVICES Revenue Division I am writing to commend Utility Cost Management LLC for its work on behalf of the City of Newport Beach Even though the City works closely with its utility providers to minimize costs, in January 2005 we retained UCM with the hope that the firm could generate additional savings UCM's review included the analysis of gas and electricity expenditures for more than 160 facilities within the city Within two months, UCM reported on opportunities to reduce significantly the City's electricity costs During subsequent weeks and months, UCM worked with Southern California Edison (SCE) personnel to implement the savings opportunities, and kept me informed throughout the process The changes that UCM made are saving the City of Newport Beach about $90,000 per year, and the City also received refunds from SCE totaling $96,379 The City will continue to benefit from UCM's efforts for many years to come, and I appreciate that these outstanding results were achieved with no capital outlays of any kind Tlus work was accomplished with virtually no demand on City staff and rather than harming the City's relationship with .ts atility providers, I suspect that UCM's work has helped co foster unproved cooperation and responsiveness Based on my experience, I enthusiastically recommend UCM to other cities and public entities Sin rely, t--4 G en Everroad Revenue Manager -v CD rf -v 3300 Newport Boulevard Post Office Box 1768 Newport Beach, California 92658-8915 ncr Attachment UCM brochure [Revision 1] (1550 Agreeement to Provide Utility Bill Auditing Services) (seeimeS Bui;ipnV 11i8 Aiiiii l epiAoad o; }ueweeeaBd O(jgl,) [I, uoisIAa'd] einyooiq won wowLiounv MU r7 CITY OF ESCONDIDO 201 NORTH BROADWAY ESCONDIDO CA 92025 Jerry H Van Leeuwen, Director CDBG Administration Division (760) 839 4871, FAX (760) 739 70" September 19, 2000 Utility Cost Management 1875 Olympic, Suite 208 Walnut Creek, CA 94596 To Whom It May Concern Utility Cost Management was hired in December 1997 to conduct a review of gas and electricity bills Their efforts discovered billing errors affecting 18 City accounts The corrections resulted in a refund of $37, 300 that the City received in July 1998 Additionally, the City has realized ongoing savings of $8,000 per year The approach used by Utility Cost Management presents no risk to the City The shared savings nature of the contract requires no financial participation by the City at the onset In fact, if UCM had been unsuccessful in finding savings, the City would have had no expense The amount of staff time invested was minimal, consisting primarily in providing a listing of utility accounts I recommend UCM for utility auditing services cerely, �r i e V n L wen erect r Lon Holt Pfeder, Mayor Keith E Beier, Mayor Pro Tern Jerry Kaufman June Rady Mane Waldron Printed on Recycled Paper (seoweg Buippnd we Avilin aplAOJd o; 4u8uaa9aa6d oqq�) [� uoisiAaa] eimpoiq win w9wLioew CITY OF COSTA MESA CALIFORNIA 92628-1200 P O BOX 1200 FRCM THE OFFICE OFTHE DIRECTOR OF FINANCE--C(TY TREASURER November 22, 2005 Michael Kerkorian Utility Cost Management LLC 726 W Barstow Avenue, Suite 108 Fresno, CA 93704 Dear Mr Kerkorian The City of Costa Mesa hired Utility Cost Management in 2004 to analyze electricity service and reduce costs Today, less than one year after UCM's recommendations were implemented, the City has realized more than $40,000 in savings as a direct result of your work We expect these savings to continue for many years into the future UCM exhibited professionalism, tact and persistence in dealing with Southern California Edison to bring about the desired changes to the City's service Even though the City has worked closely with utility company representatives in the past, UCM identified many cost -saving measures that had never been considered The City of Costa Mesa's experience with UCM has been positive, and I do not hesitate to recommend UCM to others Very truly yours, Colleen O'Donoghue, CPA Assistant Finance Director M O O a m IL (saoimag 6ui;Ipnd w8 A}iilifl apinoad 01 1uawa98a6d 0596) [4 U01SIA811] wnyooiq won ivawyoeuv UNIVERSITY OF CALIFORNIA, BERKELEY BERKELEY DAVIS IRVINE LOS ANGELES • RIVERSIDE SAN DIEGO SAN FRANCISCO HOUSING AND DINING SERVICES 2401 BOWDITCH STREET BERKELEY, CALIFORNIA 94720-2272 November 12, 1996 Christopher Jue Utility Cost Management 2185 Union Street San Francisco, CA 94123 Dear Christopher SANTA BARBARA SANTA CRUZ During the past year, Utility Cost Management has worked on analyzing the utilities costs for UC Berkeley Housing & Dining Services' facilities While UCM's work with UC is ongoing, I have been extremely pleased with the performance of your firm to date Your group has already secured a $41,000 refund for electricity overcharges to one of our properties An additional refund of more than $200,000 is currently being adjudicated with the PUC based on an improper gas and electric rate change made by PG&E in 1990 Finally, UCM's work on reducing water and sewer costs may benefit the University for years to come I have been impressed by how in-depth and thorough UCM's analysis has been, especially since the review has been performed with very little involvement from UC personnel Throughout the process, your effectiveness in communicating with me and members of other departments has allowed UC to make informed decisions on how the review should proceed I would not hesitate to recommend UCH's services to others interested in obtaining refiinds on their utility charges I look forward to continuing our work together in the coming months Sincerely, Robert R Jacobs Director Housing Facilities Operations and Services (se=jeg BugipnV ilia Avila 1 apiAoad 01 IuauaaaaaBV 0956) [4 uoisiAaII] aingooaq vion w9wLi3ew April 3, 2003 To Whom It May Concern Public Works Special Districts A 14177 Frederick Street P 0 Box 88005 Moreno Valley, CA 92552-0805 Telephone (909) 413-3480 FAX (909) 413-3498 Uti.ary Cost Mianagement was lureci in October, ZOU1, to analyze approximately 280 Southern California Edison accounts that serve the City of Moreno Valley The firm discovered that 18 City accounts were eligible for rate changes that, in some cases, reduced SCE charges by more than 50% By early 2002, UCM had worked with SCE representatives to complete the recommended changes for all 18 accounts As a result, in the past year electricity charges have been reduced by more than $115,000, and I expect these savings to continue for many years into the fixture When the time came for UCM to invoice the City for its share of the savings, I found the firm's invoices to be clear, detailed and accurate In short, UCM made the entire process simple and hassle -free — and the City was able to significantly reduce electricity expenditures without spending time or money on the project Based on UCM's work for the City of Moreno Valley, I am confident in recommending the firm to others Smcerel /homas F Breitkreuz Special Districts Manager ti 0 aM IL d Y R IL 10b GAT Y q S� G ��- October 20, 2008 Michael Kerkorian Utility Cost Management LLC 6475 N Palm Avenue, Suite 105 Fresno, CA 93704 Dear Michael In 2006, as a Senior Management Analyst for the City of Redondo Beach, I was involved in retaining UCM to analyze the city's utility costs UCM's performance was a excellent, and the city realized significant cost reductions C) T As a result of my prior experience with UCM, I contacted the firm when I moved to my new position with the City of El Segundo Once again, city officials enthusiastically endorsed UCM's risk -free offer to identify and implement cost -saving measures And N once again, UCM has delivered outstanding results that will reduce utility expenditures for many years to come These results were achieved with no capital outlays or demands on city staff time s During the two projects that I have worked on with UCM, I have found the firm to be 2 effective, professional and persistent UCM personnel are always available to answer questions from city personnel, and frequently update me on the status of their efforts Based on my experience, I wholeheartedly recommend UCM to other entities looking = for a fast, proven, hassle -free way to cut utility expenses Sincerely w 1 Q L`a n a n Senior I�dministrative Analyst Packet"Pg 109 TITLE PRESENTED BY RECOMMENDATION AGENDA REPORT September 23, 2014 Council & Successor Agency Item Annual Financial Report for the Year Ended June 30, 2013 Cynthia Fortune, Finance Director Receive and file the Annual Financial Report and related documents for the year ended June 30, 2013 2030 VISION STATEMENT This staff report supports City Council Goal #1, "Ensuring Our Fiscal Viability" through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations BACKGROUND Each year, the City has an independent audit conducted of its financial statements and related internal control procedures The audit for the fiscal year ended June 30, 2013 has been completed and the Annual Financial Report issued by the City's auditor, Rogers, Anderson, Malody & Scott, LLP DISCUSSION One of the key aspects of any annual financial audit is the Independent Auditor's Report, which is provided on page 1 of the Annual Audit Report (Exhibit A) The Independent Auditor's Report provides its opinion on whether or not the financial statements fairly present, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information as of the end of the fiscal year, and the respective changes in financial position and cash flows, where applicable, in conformance with Generally Accepted Accounting Principles (GAAP) The resulting 'opinion letter" is either unqualified or qualified The `opinion letter" received by the City for its financial statements for the period ended June 30, 2013 is unqualified, indicating that the financial statements fairly represent the City's financial position in accordance with GAAP In addition to the Annual Financial Report, the independent auditor issues other related documents, which are summarized below • Audit Overview Letter (Exhibit B) Discusses the auditor's responsibilities under Government Auditing Standards Packet Pg 111 APPROVALS Cynthia Fortune Completed 09/15/2014 9 57 AM Finance Completed 09/15/2014 2 04 PM City Attorney Completed 09/15/2014 2 44 PM City Manager Completed 09/15/2014 5 01 PM City Council Pending Packet Pg 113 11a City of Grand Terrace Annual Financial Report For the year ended June 30, 2013 Table of Contents Independent Auditor's Report PAGE Management's Discussion and Analysis 4 Basic Financial Statements Government -Wide Financial Statements 42 Statement of Net Position 15 0 0 Statement of Activities 16 CL Fund Financial Statements Governmental Funds o Balance Sheet 18 LL Reconciliation of the Balance Sheet of Governmental Funds to the co Statement of Net Position 20 Statement of Revenues, Expenditures, and Changes in Fund Balances 21 a Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 23 LO Proprietary Fund v Statement of Net Position 24 N Statement of Revenues, Expenses, and Changes in Fund Net Position 25 01 Statement of Cash Flows 26 Fiduciary Fund Statement of Fiduciary Net Position 27 Statement of Changes in Fiduciary Net Position 28 Notes to Financial Statements 29 Required Supplementary Information Budgetary Comparison Schedule General Fund 57 Street Improvement Fund 58 Housing Authority Fund 59 Child Care Center Fund 60 Nonmajor Governmental Funds Combining Balance Sheet 61 Combining Statement of Revenues, Expenditures, and Changes in Fund w Balances 64 a Packet; Pg 115 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control Accordingly, we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2013, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America Other Matters = Required Supplementary Information a Accounting principles generally accepted in the United States of America require that the r management's discussion and analysis and budgetary comparison information on pages 4-14 and 56-59 be presented to supplement the basic financial statements Such information, c although not a part of the basic financial statements, is required by the Governmental NI Accounting Standards Board, who considers it to be an essential part of financial reporting for M placing the basic financial statements in an appropriate operational, economic, or historical c� context We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, CL 0 which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements We do not express an opinion or provide any assurance on the information = because the limited procedures do not provide us with sufficient evidence to express an opinion U- or provide any assurance 3 Other Information = a Our audit was conducted for the purpose of forming opinions on the financial statements that a collectively comprise the City's basic financial statements The supplementary schedules are presented for purposes of additional analysis and are not a required part of the basic financial x statements w The combining and individual nonmator fund financial statements and supporting schedules are the responsibility of management and were derived from and relate directly to the underlying E accounting and other records used to prepare the basic financial statements Such information has been subjected to the auditing procedures applied in the audit of the basic financial a statements and certain additional procedures, including comparing and reconciling such 2 Packet; Pg 117 CD M. CD 7 O 7 d r(O Attachment Exhibit A - Annual Financial Report 06_30_2013 (1555 Annual Financial Report for the Year Ended June 30, 2013) • Fiduciary fund statements provide information about the fiduciary relationships - like the agency funds of the City - in which the City acts solely as agent or trustee for the benefit of others, to whom the resources in question belong The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data The statements are followed by a section of required supplementary spreadsheets that provide additional financial and budgetary information Reporting the City as a Whole The accompanying government -wide financial statements include two statements that present financial data for the City as a whole The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private -sector companies All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid These two statements report the City's net position and changes in them The City's net position - the difference between assets and liabilities - are one way to measure the City's financial health, or financial position Over time, increases and decreases in the City's net position are one indicator of whether its financial health is improving or deteriorating You will need to consider other nonfinancial factors, however, such as changes in the City's property tax or sales tax base and the condition of the City's roads, to assess the overall health of the City to The Statement of Net Position and the Statement of Activities are divided into two kinds of activities to v ■ Governmental activities - Most of the City's basic services such as public safety, streets and roads, economic development and parks maintenance, are reported here Sales taxes, property taxes, state subventions, and other revenues finance most of these activities ■ Business -type activity - The City charges a fee to customers and budgets expenses so it covers all costs of services accounted for in this fund Reporting the City's Most Significant Funds The fund financial statements provide detailed information about the City's most significant funds - not the City as a whole Some funds are required to be established by State law or by bond covenants However, City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting oversight responsibilities for using certain taxes, grants, or other money The City's two kinds of funds - governmental and proprietary - use different accounting approaches Governmental funds - Most of the City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year end w that are available for spending These funds are reported using the modified accrual accounting method, which measures cash and all other current financial assets that can d readily be converted to cash The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides w Governmental fund information helps you determine whether there are more or fewer financial a resources that can be spent in the near future to finance the City's programs Both the governmental fund balance sheet and the governmental fund statement of revenues, 5 Packet4Pg 121t A summary of the government -wide Statement of Activities for the year ended June 30, 2013 and 2012 are as follows Table 2 Changes in Net Position Governmental Activities Business -type Activities Total 2013 2012 2013 2012 2013 2012 Revenues and transfers Program revenues Charges for services $ 1,535 255 $ 1,407,809 $ 1,653,497 $ 1 604 588 $ 3 188 752 $ 3 012 397 Operating contributions and grants 1,385,675 559,490 - - 1 385 675 559 490 Capital contributions and grants 75 804 708 163 - - 75 804 708,163 General revenues Property tax 2,298,949 3,843,700 - - 2 298 949 3 843 700 Sales tax 890 016 889 422 - - 890 016 889 422 Motor vehicle in lieu 5,395 6,519 - - 5 395 6 519 Othertaxes 812,951 821,010 - - 812 951 821 010 Sale of property 19,643 358,374 19,643 358 374 Other revenues 219 044 538 096 4,987 5,267 224,031 543,363 Transfers 155 878 131 440 (155 878) (131 440) - - Total revenues and transfers 7,398 610 9 264 023 1 502,606 1,478 415 8901,216 10 742 438 Expenses General government 1 553 552 1 397 889 - - 1 553 552 1 397 889 Public safety 1,845,632 1,927,217 - - 1 845 632 1 927 217 Public works 1 262 693 1 369 119 - - 1 262 693 1 369 119 Economic development 10,592 585,469 - - 10,592 585 469 Cultural and recreation 1 426 017 1 279 189 - - 1,426 017 1 279 189 Interest on long-term debt 66 232 137 523 - - 66,232 137,523 Waste water disposal - - 1 423 639 1 437 945 1 423 639 1 437 945 Total expenses 6 164 718 6 696 406 1 423 639 1 437 945 7 588 357 8,134 351 Extraordinary item Loss on RDA dissolution - (9 539 468) - - - (9,539,468) Loss on capital lease denied by DOF (1 631 318) - - - (1,631,318) - Change in net position (397,426) (6,971,851) 78,967 40 470 (318 459) (6 931 381) Beginning net position 15 507 855 22 479 706 7 150 967 7 110 497 22 658 822 29,590,203 Ending net position $ 15 110 429 $ 15 507 855 $ 7 229 934 $ 7150,967 $ 22 340,363 $ 22 658 822 The Increase or decrease in net position can provide an Indication as to whether the overall financial position of the City Improved or deteriorated during the year From operations, total net position for the City decreased by $318,459 during the fiscal year Taken separately, governmental activities net position decreased by $397,426 while business -type activities net position increased by $78,967 Total expenses of $7,588,357 were offset by total revenues of $8,901,216 In the Statement of Activities, expenditures do not include the cost of assets capitalized during the year or payments made on principal of outstanding debt Depreciation is shown for governmental funds on this table, but the expense is not recorded in each individual fund After the deduction of capitalized assets, the next largest component in changes to net position is the actual increase or decrease in fund balances resulting from operations For governmental funds there was a net increase of $882,242 Of this amount, a net increase of $360,530 is attributable to the nonmajor funds, a net increase of $46,957 to Capital Projects, a net increase of $26,846 to the Child Care Center, a net increase of $1,066 to the Housing Authority, a net decrease of $259,978 to the Street Improvement Fund, with the difference being a net increase to the General Fund of $706,821 7 PackefPg 123 11a Revenues by Source - Governmental Activities $7,398,610 Otherta� 11% M otor ve in hei 0% Sales tax 12% Pri Other revenues Transfers 31% 1% iarges for services 21% aerating ributions d grants 19% Expenses by Function - Governmental Activities - $6,164,718 Cultural and recreation 23 Economic developmer 0% Public 2: Interest on long-term debt General government 25 I i c safety 30% 0 Packet Pg 125 The significant highlights in activities, revenues and expenditures of the City's General Fund from the prior year are as follows General Fund revenues and transfers exceeded expenditures and transfers out by - $706,821 Total fund revenues decreased by $372,959 or 8 1 percent from FY 2011 -12 This decrease in total general fund revenues is attributable mainly to the decrease in charges for service and other revenues The impact of the $1,206,793 combined decrease in these two revenue categories were actually minimized greatly by the concurrent $890,886 increase in taxes collected by the General Fund during the fiscal year • Property tax received increased by 66 percent from $1,382,935 to $2,298,949 This increase in property tax is attributable to the City's share of excess revenue distribution as a result of the RDA dissolution amounting to $902,440 during FY 2012-13 • Sales tax and Sales tax —in -lieu increased by 1 0 percent from $963,439 to $971,549 • Licenses and permits decreased by $12,129 or 1 9 percent from $638,036 in FY 2011- 12 to $625,907 in FY 2012- 13 This is mainly due to the decrease in business license tax which decreased by $14,907 during FY 2012- 13 compared to the prior fiscal year • Charge for service dropped to $198,493 compared to the previous year at $1,103,323 This u'. equates to a $904,830 reduction or an 82 percent reduction This huge decrease in charges for services in the General Fund is a direct result of the decision to move the activities of the = Child Care Center from the General Fund to another Fund (Fund 09) During FY 2011- 2012, a the Child Care Center contributed $878,700 to this revenue category, hence the huge drop in u, the charge for service revenue category Building fees and permits decreased by $46,384, or 34 percent Planning fees and permits on the other hand, increased 171 % to $37,302 from $13,750 in FY 2011 -12 • Fines and forfeitures almost doubled from $20,355 in FY 2011- 12 to $ 40,613 in FY 2012-13 Under this revenue category, while there was a decrease of $4,200, or 81 percent in code enforcement fines during FY 2012- 13 compared to the prior fiscal year, there was an increase of $24,798 in parking citations — sweep days • Use of money and property category decreased by 29 7 percent to $28,786 from $40,941 in the previous fiscal year General Fund overall operating expenditures decreased by a net 16 5 percent over the prior year, mainly due to the total deletion of operating expenditures for the Child Care Center which were moved to another fund (Fund 09) starting FY 2012- 13 The total operating expenditures of the Child Care Center which were part of the total General Fund operating expenditures in the previous fiscal year totaled $ 834,948 The City is continuing many budget reduction measures instituted in previous years such as a 10 percent employee salary furlough, elimination and deferral of some employee benefits, deferral of merit increases, and reallocation of some employee salaries to other funds 11 Pack6fPg 127 f 11a Land Buildings Improvements Equipment Vehicles Infrastructure Sewer mains Sewer laterals Sewer manholes Construction in progress Total Long -Term Debt Capital Assets (net of depreciation) Governmental Activities Business -type Activities Total 2013 2012 2013 2012 2013 2012 $ 2,177,069 $ 1,579,379 $ - $ 3,524,732 3,835,936 - 1,732,925 2,128,609 139,065 156,470 210,531 - 74,644 126,430 - 3,111,569 2,720,067 - - - 2,730,380 - - 1,370,861 - - 910,812 $ 2,177,069 $ 1,579,379 3,524,732 3,835,936 155,921 1,871,990 2,284,530 - 156,470 210,531 - 74,644 126,430 - 3,111,569 2,720,067 2,819,782 2,730,380 2,819,782 1,412,881 1,370,861 1,412,881 939,674 910,812 939,674 1 404,428 824,254 - - 1,404,428 824,254 $ 12,181,837 $ 11,425,206 $ 5,151,118 $ 5,328,258 $ 17332,955 $ 16,753,464 At the end of the current fiscal year, the City had debt outstanding of $2,717,372 Of this amount, $1,591,700 is owed to Zions National Bank, and $1,125,672 is made up of other debt comprised of an OPEB obligation and compensated absences payable $246,635 of all debt is due and payable within one year The Department of Finance (DOF) has made its final determination that the capital lease obligation to Zions National Bank is not an enforceable obligation of the Successor Agency to the Community Redevelopment Agency of the City of Grand Terrace, hence the debt has been added back as a long-term debt of the City's General Fund Outstanding Debt Governmental Activities OPEB Obligation Leases payable Compensated absences Total outstanding debt 2013 $ 863,986 1,591,700 261,686 2012 $ 604,724 27,807 242,280 $ 2,717,372 $ 874,811 The City's total debt Increased by $1,842,561 (210 62 percent) during the current fiscal year, mainly due the transfer of debt obligation to Zions National Bank from the Successor Agency Trust Fund to the General Fund during the fiscal year The City adopted GASB Statement No 45 and recognizes a liability of $863,986 for retiree health benefits Additional information on the City's long-term debt can be found in the notes to the accompanying financial statements co v- im N C M m c 'a m c W .02 ca m s L 0 0. m ea U. �a ,, LO LO M T O N OI MI �O O 0 Q. d a La �a U. _ a a x W m E �a a 13 Packet; Pg 129 W a1 Attachment Exhibit A -Annual Financial Report 06_30_2013 (1655 Annual Financial Report for the Year Ended June 30, 2013) Cs n W w Attachment Exhibit A - Annual Financial Report 06_30_2013 (1555 Annual Financial Report for the Year Ended June 30, 2013) City of Grand Terrace Statement of Activities For the year ended June 30, 2013 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental activities General government $ 1,553,552 $ 35,251 $ - $ - Public safety 1,845,632 87,268 1,078,587 - Public works 1,262,693 168,193 307,088 75,804 Economic development 10,592 118,403 - - Cultural and recreation 1,426,017 1,126,140 - - Interest on long-term debt 66,232 - - - Total governmental activities 6,164,718 1,535,255 1,385,675 75,804 Business -type activity Waste water disposal 1,423,639 1,653,497 - - Total $ 7,588,357 $ 3,188,752 $ 1,385,675 $ 75,804 General revenues Property taxes, levied for general purposes Property taxes, tax increment, restricted Franchise taxes Sales taxes Motor vehicle in lieu taxes Public service taxes Use of money and property Other Sale of property Extraordinary item - loss on capital lease denied by the Department of Finance Transfers Total general revenues and transfers Change in net position Net position - beginning Net position - ending The accompanying notes are an Integral part of these financial statements 16 .a Packet' Pg 135 W a1 Attachment Exhibit A -Annual Financial Report 06_30_2013 (1655 Annual Financial Report for the Year Ended June 30, 2013) Cs n W w Attachment Exhibit A - Annual Financial Report 06_30_2013 (1555 Annual Financial Report for the Year Ended June 30, 2013) 1-411 Attachment Exhibit A - Annual Financial Report 06_30_2013 (1555 Annual Financial Report for the Year Ended June 30, 2013) 1-411 Attachment Exhibit A - Annual Financial Report 06_30_2013 (1555 Annual Financial Report for the Year Ended June 30, 2013) City of Grand Terrace Balance Sheet Governmental Funds June 30, 2013 ASSETS Cash and investments Interest receivable Accrued revenue Due from other funds Due from other governments Prepaid expense Advances to other funds Loans receivable Notes receivable Property held for resale Total assets LIABILITIES AND FUND BALANCES Liabilities Accounts payable Accrued liabilities Due to other funds Due to other governments Advances from other funds Deferred revenue Refundable deposits Total liabilities Fund balances Nonspendable Restricted for Public works Community development Child care Unassigned Total fund balances Total liabilities and fund balances Special Revenue Funds Street General Improvement Housing Authority $ 3,731,219 $ 1,037,200 $ 22,274 1,911 - - 83,380 - - 880,310 - - 192,881 - 448,636 46,555 - - - - 168,205 364 - 78,805 - - 669,000 - - 640,166 $ 4,936,620 $ 1,037,200 $ 2,027,086 $ 165,635 $ - $ 43 36,419 - - 3,072,580 - 21,165 168,205 - - - - 78,805 - 4,663 - 3,442,839 4,663 100,013 46,555 - - - 1,032, 537 - - - 1,927,073 1,447, 226 - - 1,493, 781 1,032, 537 1,927,073 $ 4,936,620 $ 1,037,200 $ 2,027,086 The accompanying notes are an integral part of these financial statements 18 Packet,Pg 139 w t� p, — Attachment Exhibit A - Annual Financial Report 06_30_2013 (1555 Annual Financial Report for the Year Ended June 30, 2013) w City of Grand Terrace Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the year ended June 30, 2013 REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Use of money and property Other Total revenues EXPENDITURES Current General government Public safety Public works Economic development Cultural and recreation Debt service Principal Interest and other charges Capital outlay General Special Revenue Funds Street Improvement Housing Authority $ 3,270,498 $ - $ - 625,907 - - 43,468 - - 198,493 - - 40,613 - - 28,786 2,815 78 5,884 - 1,025 4,213,649 2,815 1,103 1,096,632 - - 1,715,916 - - 701,101 - - - - 37 213,783 - - 115,266 40,977 Project improvement costs - - - Total expenditures 3,883,675 - 37 Excess of revenues over expenditures 329,974 2,815 1,066 OTHER FINANCING SOURCES (USES) Proceeds from sale of assets 19,643 - - Transfers in 447,161 - - Transfers out (89.957) (262.793) - Total other financing sources (uses) 376,847 (262,793) - Net change in fund balances 706,821 (259,978) 1,066 Fund balances (deficit) - beginning 786,960 1,292,515 1,926,007 Fund balances - ending $ 1,493,781 $ 1,032,537 $ 1,927,073 The accompanying notes are an integral part of these financial statements 21 Packet,Pg 143 a. M w � i n � U- Attachment Exhibit A - Annual Financial Report 06_30_2013 (1555 Annual Financial Report for the Year Ended June 30, 2013) w 11a City of Grand Terrace Statement of Net Position Proprietary Fund June 30, 2013 Business -type Activity Waste Water Disposal ASSETS Current assets Cash and investments $ 2,136,678 Accrued revenue 332,547 Due from other governments 120,100 Total current assets 2,589,325 Noncurrent assets Capital assets Sewer system 7,415,106 Less accumulated depreciation (2,263,988) Total noncurrent assets 5,151,118 Total assets 7,740,443 LIABILITIES Current liabilities Accounts payable 11,182 Accrued liabilities 8,267 Due to other governments 491,060 Total liabilities 510,509 NET POSITION Net investment in capital assets 5,151,118 Unrestricted 2,078,816 Total net position $ 7,229,934 The accompanying notes are an integral part of these financial statements 24 Packet Pg 147 11a City of Grand Terrace Statement of Cash Flows Proprietary Fund For the year ended June 30, 2013 Business -type Activity Waste Water Disposal Cash Flows From Operating Activities Cash received from customers $ 1,276,147 Cash payments to suppliers (1,264,619) Cash payments to employees for services (78,005) Net cash used for operating activities (66,477) Cash Flows From Noncapital Financing Activities Transfers to other funds (155,878) Net cash used for noncapital financing activities (155,878) Cash Flows From Investing Activities Interest income 5,558 Net cash provided by investing activities 5,558 Net decrease in cash and cash equivalents (216,797) Cash and cash equivalents - beginning 2,353,475 Cash and cash equivalents - ending $ 2,136,678 Reconciliation of Operating Income to Net Cash Used for Operating Activities Operating income $ 229,858 Adjustments to reconcile operating income to net cash used for operating activities Depreciation 88,570 (Increase) decrease in assets Accrued revenue (257,250) Due from other governments (120,100) Increase (decrease) in liabilities Accounts payable (7,639) Accrued liabilities 84 Net cash used for operating activities $ (66,477) Ln La La The accompanying notes are an integral part of these financial statements 26 Packet Pg 149 11a City of Grand Terrace Statement of Changes in Fiduciary Net Position Private Purpose Trust Fund — Successor Agency For the year ended June 30, 2013 Successor Agency Private Purpose Trust Fund ADDITIONS RPTTF distribution $ 2,270,957 Investment earnings 55,866 Other receipts 13,587 Total additions 2,340,410 DEDUCTIONS General 584,547 Debt service payments - interest 1,339,289 Payments of enforceable obligations 1,650,496 Other payments 198,579 Total deductions 3,772,911 EXTRAORDINARY ITEM Gam in capital lease denied by the Department of Finance 1,631,318 Change in net position 198,817 Net position - beginning 8,477,026 Net position - end of the year $ 8,675,843 The accompanying notes are an integral part of these financial statements 28 Packet Pg 151 �Iw Attachment Exhibit A - Annual Financial Report 06_30_2013 (1666 Annual Financial Report for the Year Ended June 30, 2013) 11a City of Grand Terrace Notes to Financial Statements June 30, 2013 Note 1 Organization and Summary of Significant Accounting Policies (continued) b Government -wide and fund financial statements The government -wide financial statements include a statement of net position and a statement of activities These statements present summaries of governmental and business -type activities for the City accompanied by a total column Fiduciary activities of the City are not included in these statements Certain eliminations have been made as prescribed by GASB Statement No 34 in regard to interfund activities, payables, and receivables All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business -type activities, which are presented as internal balances and eliminated in the total primary government column Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support The statement of activities demonstrates the degree to which the direct and indirect expenses of a E given function or segment are offset by program revenues Direct expenses are those that are clearly = identifiable with a specific function or segment Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions, including special assessments, that are a restricted to meeting the operational or capital requirements of a particular function or segment Taxes and other items not properly included among program revenue are reported instead as general revenues Separate financial statements are provided for governmental funds, proprietary, and fiduciary funds, even though the latter are excluded from the government -wide financial statements Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements c Measurement focus, basis of accounting, and financial statement presentation The government -wide statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the cash flows Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position The statement of activities presents changes in net position Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred The types of transactions reported as program revenues for the City are reported in three categories 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions m E CDO 30 Packet Pg 155 11a City of Grand Terrace Notes to Financial Statements June 30, 2013 Note 1 Organization and Summary of Significant Accounting Policies (continued) The Agency Funds are used to account for the resources held by the City in a fiduciary capacity Private -sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board Governments also have the option of following subsequent private - sector guidance for their business -type activities and enterprise funds, subject to this same limitation The City has elected not to follow subsequent private -sector guidance As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements Exceptions to this general rule are payments -in -lieu of taxes and other charges between the government's waste water disposal function and various other functions of the government Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments Internally dedicated resources are reported as general revenues rather than as program revenues Likewise, general revenues include all taxes Proprietary funds distinguish operating revenues and expenses from nonoperating items Operating Ln revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations The principal operating revenues r, for the Waste Water Disposal Fund are charges to customers for sales and services Operating o expenses for the same Enterprise Fund include the cost of sales and services, administration of expenses, and depreciation on capital assets All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses o Other Accounting Policies Receivables and payab/es Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i e , the current portion of interfund loans) or "advances to/from other funds" (i e , the non -current portion of interfund loans) All other outstanding balances between funds are reported as "due to/from other funds " Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances " Advances between funds, as reported in the fund financial statements, are offset by a fund balance w reserve account in applicable governmental funds to indicate that they are not available for L, appropriation and are not expendable available financial resources E t r r a 32 Packet Pg 157 11a City of Grand Terrace Notes to Financial Statements June 30, 2013 Note 1 Organization and Summary of Significant Accounting Policies (continued) Capital assets Capital assets, which include property, plant and equipment, and infrastructure assets (e g , roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business -type activities columns in the government -wide financial statements Capital assets are defined by the government as assets with an initial, individual cost of more than or equal to $5,000 (amount not rounded) and an estimated useful life of at least two years Such assets are recorded at historical cost, or estimated historical cost if purchased or constructed Donated capital assets are recorded at estimated fair market value at the date of donation The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives Assets Buildings Machinery & equipment Vehicles Improvements other than buildings Infrastructure Sewer lines Use of estimates Years 50 5-15 a 6-15 Lo Lo 15-20 20 - 30 g0 0 The financial statements have been prepared in accordance with generally accepted accounting principles accepted in the United States of America and necessarily include amounts based on estimates and assumptions by management Actual results could differ from those amounts Long-term obligations In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net position Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method Bonds payable are reported net of the applicable bond premium or discount Bond issuance costs are reported as deferred charges and amortized over the term of the related debt In the fund financial statements, governmental fund types recognize bond premiums and discounts, d as well as bond issuance costs, during the current period The face amount of debt issued is reported E as other financing sources Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses Issuance costs, a whether or not withheld from the actual debt proceeds received, are reported as expenditures 34 Packet Pg 159 11a City of Grand Terrace Notes to Financial Statements June 30, 2013 II STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Note 1 Organization and Summary of Significant Accounting Policies (continued) a Budgetary data The annual budget is adopted by the City Council after the holding of a hearing and provides for the general operation of the City The operating budget includes proposed expenditures and the means of financing them The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year This "appropriated budget" (as defined by GASB Code Section 2400 109) covers City expenditures in all governmental funds, except for the Public Financing Authority Debt Service Fund This entity does not adopt an annual budget as effective budgetary control is achieved through bond indenture and other instrument provisions Actual expenditures may not exceed budgeted appropriations at the fund level Formal budgetary integration is employed as a management control device during the year Commitments for materials and services, such as purchase orders and contracts, are recorded �v as encumbrances to assist in controlling expenditures Encumbrances at year-end lapse, and = then are added to the following year's budgeted appropriations Also, unencumbered a appropriations lapse at year-end LO U) LO Annual budgets for the General, Special Revenue, and Community Redevelopment Agency Debt Service Funds are adopted on a basis consistent with accounting principles generally accepted iri the United States of America Accordingly, actual revenues and expenditures can N be compared with related budgeted amounts without any significant reconciling items o� Capital projects are budgeted through the Capital Project Funds Appropriations for capital projects authorized, but not constructed or completed during the year, lapse at year-end, and are then included as a part of appropriations in the following year's annual budget b Deficit fund balances As of June 30, 2013 the following funds have deficit fund balances Amount Special Revenue Funds AB 3229 COPS $ (935) Capital Projects Fund Capital Projects/Bond Proceeds (348) These deficits will be funded by future revenues or transfers from other funds �a w a 36 Packet Pg 1671 ] 11a City of Grand Terrace Notes to Financial Statements June 30, 2013 Note 2 Cash and Investments Authorized investments The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive) The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy Maximum Maximum Maximum Percentage Investment in Authorized Investment Type Maturity of Portfolio one Issuer U S Treasury Obligations 5 years None None Repurchase Agreements 1 year None None Certificates of Deposit 5 years None None Negotiable Certificates of Deposit 5 years 30% None Passbook Savings Accounts N/A None None Securities Issued by Federal Agencies 5 years None None Local Agency Investment Fund (LAIF) N/A None $50,000,000 Mutual Funds N/A 20% 10% Pools and other investment structures N/A None None to 38 Packet Pg 163 11a City of Grand Terrace Notes to Financial Statements June 30, 2013 Note 2 Cash and Investments (continued) Disclosures relating to credit risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment This is measured by the assignment of a rating by a nationally recognized statistical rating organization Information about the minimum rating required by the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year- end for each type of investment held by the City can be found below Minimum Legal Investment Type Amount Rating Actual Rating Money Market Mutual Fund $ 1,071,782 N/A N/A Passbook Savings Account 250,116 N/A N/A Certificates of Deposit 13,148,825 N/A N/A Local Agency Investment Fund (LAIF) 8,704,688 N/A N/A Local Gov Invest Pool (CAMP) 3,883,247 N/A N/A Held by Trustee Money Market Funds 1,758,095 AAAm AAAm / A+ Total $ 28,816,753 Concentration of credit risk ,c uO to The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code During the fiscal year ended c June 30, 2013, the City did not hold any investments in any one issuer (other than Mutual Funds and NI External Investment Pools) that represent 5% or more of total City's investments M, Custodial credit risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial 12 institution, a government will not be able to recover its deposits or will not be able to recover collateral a securities that are in the possession of an outside party The custodial credit risk for investments is = the risk that, in the event of the failure of the counterparty (e g , broker -dealer) to a transaction, a c government will not be able to recover the value of its investment or collateral securities that are in the U. possession of another party The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits c or investments, other than the following provision for deposits The California Government Code Q requires that a financial institution secure deposits made by state or local governmental units by a pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit) The market value of the pledged securities in the x collateral pool must equal at least 110% of the total amount deposited by the public agencies W California law also allows financial institutions to secure deposits by pledging first deed mortgage i notes having a value of 150% of the secured public deposits E As of June 30, 2013, the City had deposits with financial institutions in excess of federal depository a insurance limits of $12,304,941 and $821,782 held in collateralized accounts for the successor agency and City, respectively 40 Packet Pg 165 City of Grand Terrace Notes to Financial Statements June 30, 2013 Note 3 Interfund Receivable, Payable and Transfers The composition of interfund balances at June 30, 2013 is as follows Due to/from other funds Receivable Fund Payable Fund Amount General Fund Nonmajor Governmental Funds (1) $ 11,522 Nonmajor Governmental Funds (3) 4,533 Capital Project Fund (1) 864,255 Nonmajor Governmental Funds Nonmajor Governmental Funds (2) 25,437 (1) The above amounts were loaned to provide short-term loans to fund operations of the various funds (2) The above amount was advanced by the Facilities Fund to the Traffic Safety Fund to pay for delinquent contract fees due to Redflex Traffic Systems (3) The above amount represents remaining advance made by the General Fund for the Barton/Colton Bridge capital project Advances from/to other funds Receivable Fund Payable Fund Amount Housing Authority Fund General Fund $ 168,205 $ 168,205 In April 1980, the CRA entered into a pass -through agreement with the City, which was found to be in noncompliance with State statutes The misallocated tax increment was being treated as advances payable to the former Community Redevelopment Agency from the General Fund Since the close of the Redevelopment Agency, the advance receivable was transferred to the Successor Agency and is shown as a due from other government in the Private Purpose Trust Fund in the amount of $3,072,580 Interest on the advance accrues at an interest rate equal to the Local Agency Investment Fund yield The advance is to be repaid as funds are available 42 Packet Pg 167 11a City of Grand Terrace Notes to Financial Statements June 30, 2013 Note 5 Capital Assets Capital asset activity for the year ended June 30, 2013 was as follows Beginning Ending Balance Additions Deletion Balance Governmental Activities Capital assets, not being depreciated Land $ 2,177,069 $ - $ - $ 2,177,069 Construction in progress 297,832 1,106,596 - 1,404,428 Total capital assets, not being depreciated Capital assets, being depreciated Buildings Machinery & equipment Vehicles Improvements other than buildings Infrastructure Total capital assets, being depreciated Less accumulated depreciation for Buildings Machinery & equipment Vehicles Improvements other than buildings Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net 2,474,901 1,106,596 - 3,581,497 6,268,981 - - 6,268,981 804,972 - - 804,972 592,707 - (63,486) 529,221 3,937,195 - - 3,937,195 3,959,964 214,000 - 4,173,964 15,563,819 214,000 63,486 15,714,333 (2,588,647) (155,602) - (2,744,249) (624,805) (23,697) - (648,502) (492,167) (25,896) 63,486 (454,577) (2,006,428) (197,842) - (2,204,270) (839,877) (222,518) - (1,062,395) (6,551,924) (625,555) 63,486 (7,113,993) 9,011,895 (411,555) - 8,600,340 $ 11,486,796 $ 695,041 $ - $ 12,181,837 44 Packet Pg 169 11a City of Grand Terrace Notes to Financial Statements June 30, 2013 Note 6 Long -Term Liabilities Long-term liability activity for the year ended June 30, 2013 was as follows Governmental Activities Capital leases Zions National Bank HVAC Lease Total capital leases OPEB Obligation Compensated Absences Total long term liabilities Lease Payable Beginning Transferred from Ending Due Within Balance Additions Deletions Successor Agency Balance One Year $ - $ $ (87 459) $ 1 679 159 $ 1 591 700 $ 181 213 27 807 - (27 807) - - 27 807 - (115 266) 1 679 159 1 591 700 181 213 604 724 262 747 (3 485) 242 280 119 084 (99 678) 863 986 261 686 65 422 $ 874 811 $ 381 831 $ (218 4291 $ 1 679 159 $ 2 717 372 $ 246 635 On August 28, 2009, the City entered Into a Lease Agreement (Lease) with Zions First National Bank in order to refinance the City of Grand Terrace Refunding Certificates of Participation, Issue of 1997, which was issued to finance city hall and other public improvements The City used the proceeds of the Lease of $2,162,000 and funds on hand of $358,000 to current refund the $2,520,000 of outstanding 1997 Certificates of Participation Under the Lease, the City is to lease property to Zions and in return Zions will lease the property back to the City in consideration of the payment by the City of semiannual lease payments commencing March 1, 2010 through September 1, 2020 at 4 76% interest The lease payable was identified as part of the former redevelopment agency's long-term debt The lease was transferred to the Successor Agency on February 1, 2012 as a result of the Redevelopment Agency closure On September 1, 2012 the Department of Finance for the State allowed a debt service payment of $127,424 for the 2009 Zions National Bank lease However, the Department of Finance later indicated that this loan was not an enforceable obligation of the Agency, and therefore, denied payment for the second debt service payment which was due on March 1, 2013 The Zions Bank Lease was then transferred back to the City as a result Debt service payments to maturity for the 2009 Zions National Bank lease are as follows Year Ending June 30, 2014 2015 2016 2017 2018 2019-2021 PnnclDal $ 181,213 189,943 199,091 208,681 218,732 594,040 Interest $ 73,633 64,906 55,756 46,167 36,116 43,079 Total $ 1,591,700 $ 319,657 to LO M Packet Pg 171 11a City of Grand Terrace Notes to Financial Statements June 30, 2013 Note 8 Other Post Employment Benefits Plan description The City provides a medical plan coverage for retirees This coverage is available for employees who satisfy the requirements for retirement under the California Public Employees Retirement System (PERS), which is age 50 or older with at least five years of State or public agency service The healthcare coverage provided by PERS meets the definition of an Other Post Employment Benefit (OPEB) as described in GASB Statement No 45 Medical plan benefits are provided through PERS, as permitted by the Public Employees' Medical and Hospital and Care Act (PEMHCA) As a PEMHCA employer, the City has elected the unequal contribution method, where the contribution will be increased annually over twenty years until it reaches the same employer contribution as active employee medical plan coverage Funding policy The contribution requirements of the City are established and may be amended by the City Council The required contribution is based on pay-as-you-go financing requirements For fiscal year 2012- 2013, the City contributed $3,485 to the plan Annual OPEB cost and Net OPEB obligation LO The City's annual other OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially in accordance with GASB Statement No 45 The City M obtained an updated actuarial study of the plan, but is in the process of having one performed in c 2013 The calculation is solely based on the 2011 actuarial report prepared by Bartel & Associates, CI LLC The ARC represents a level of funding that, if paid on an ongoing basis, is protected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) not to 0 exceed thirty years The following table shows the components of the City's annual OPEB cost for the c year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation d June 30, 2013 Annual required contribution $ 265,000 Interest on net OPEB obligation 24,189 Adjustment to annual required contribution (26,442) Annual OPEB cost (expense) 262,747 Contributions made (3,485) Increase in net OPEB obligation 259,262 Net OPEB obligation — beginning of year 604,724 Net OPEB obligation — end of year $ 863,986 48 Packet Pg 173 11a City of Grand Terrace Notes to Financial Statements June 30, 2013 Note 9 Residential Mortgage Revenue Bonds In 1984, the La Verne -Grand Terrace Housing Finance Agency, a joint powers authority duly established by appropriate resolutions of the Redevelopment Agency of the City of La Verne and the Community Redevelopment Agency of the City of Grand Terrace pursuant to Government Code Section 6500, et seq , issued Residential Mortgage Revenue Bonds totaling $38,625,000 pursuant to Chapters 1-5 of part 5 of Division 31 of the Health and Safety Code of the State of California The bonds provide for long-term low interest mortgage loans to qualified home buyers of single family homes in certain residential developments as specified by the indenture The bonds are payable solely from payments made on and secured by a pledge of the home mortgages and the funds and accounts held for the benefit of the bondholders pursuant to the indenture The bonds do not represent a lien or charge upon the funds or property of the Agency Neither the full faith and credit, nor the taxing power, of the Agency is pledged to the payment of the bonds For these reasons, the bonds are not shown as liabilities in the accompanying financial statements The mortgage bond program is administered by a separate administrator apart from the Agency as specified by the indenture The fiscal agent and trustee duties are also performed by a separate trustee bank apart from the Agency in June 1992, the joint powers authority sold the home mortgages The proceeds from the sale of the mortgages plus other assets were irrevocably placed into a trust with an escrow agent to provide for all future debt service on the bonds through the year 2017 At June 30, 2013, approximately $2,590,000 of the bonds were outstanding Note 10 Risk Management The City is a member of the California Joint Powers Insurance Authority (the "Authority") The following joint venture disclosures are made in compliance with GASB Code Section J50 103 a Description of self-insurance pool pursuant to joint powers agreement The City of Grand Terrace is a member of the California Joint Powers Insurance Authority (the "Authority") The Authority is composed of 119 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq The purpose of the Authority is to arrange and administer programs for the pooling of self -insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other coverage The Authority's pool began covering claims of its members in 1978 Each member government has an elected official as its representative on the Board of Directors The Board operates through a 9-member Executive Committee LO LO EN 50 Packet Pg 175 11a City of Grand Terrace Notes to Financial Statements June 30, 2013 Note 11 Contingencies As of June 30, 2013, in the opinion of the City Administration and its legal counsel, there are no outstanding matters, which would have a material effect on the financial position of the City Note 12 Proposition 218 Proposition 218, which was approved by the voters in November 1996, will regulate the City's ability to impose, increase and extend taxes, assessments and fees Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218 require voter approval before they can be implemented Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future by the voters Note 13 Financial Condition and Management Plans In November 2013, Measure C, the measure to consider implementing a 5% utility users' tax, was not approved by the voters The tax was proposed to offset protected budgetary deficits in upcoming LL years, and enable the City to continue providing basic services to its residents The protected budgetary deficits were a result of the State Legislature taking action to dissolve redevelopment a agencies through the enactment of ABx1 26, which transfers property tax revenues from the redevelopment agencies to the other taxing entities A more comprehensive and detailed review of the property tax revenues transferred from CO) redevelopment agencies to the taxing entities revealed that the City of Grand Terrace, as one of the CD N taxing entities, is eligible to receive a portion of the residual property tax balance from the Successor of Agency (Agency), once the Agency satisfies all its recognized obligation payments The Residual Property Tax balance received by the City as a taxing entity from the last 3 recognized obligation payment schedule (ROPS) cycles has been significant, enabling the City Council to designate the following reserves A General Fund contingency reserve representing two months of operating revenues, as recommended by the Government Finance Officers Association (GFOA) and established in the City's Reserves Policy ($600,000), An Equipment Replacement reserve for capital asset replacements ($200,000), and A Budget Stabilization Reserve for future deficits ($400,000) Although the protected residual property tax revenue distributions cannot be modeled, as stated by the San Bernardino Auditor -Controller's Office and that actual distributions, and the rates applied to distributions, cannot be predicted, and vary from one distribution cycle to another, the City has w included very conservative residual property tax protections in the FY2014-15 budget, although it is anticipated that such revenues will rise s ea .r w a 52 Packet Pg 177 11a City of Grand Terrace Notes to Financial Statements June 30, 2013 Note 14 Successor Agency Private -Purpose Trust Fund to the Former Redevelopment Agency (continued) The bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011 If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill Management believes, in consultation with legal counsel, that the obligations of the former RDA due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill The city's position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue It is reasonably possible that a legal determination may be made at a later date by the appropriate judicial authority that would resolve this issue unfavorably to the City As of June 30, 2013 the California State Controller had not issued its final Finding of Completion letter to the Successor Agency and assets transfers and obligations were still under review Successor Agency long-term debt Schedule of changes in long-term liabilities as of June 30, 2013 Beginning Ending Due Within ".6 Balance Additions Deletions Balance One Year LO Governmental Activities Bonds payable 2004 Refunding Tax Allocation Bonds $ 1,930,000 $ - $ (1,930,000) $ - $ - 2011 Tax Allocation Bonds, Series A 15,175,000 - (260,000) 14,915,000 280,000 N 2011 Tax Allocation Bonds, Series B 5,650,000 - (220,000) 5,430,000 235,000 cl Less deferred amounts a)l on refunding - - - - CO Discount on bonds issued (164,374) - 9,110 (155,264) - c Total bonds payable 22,590,626 - (2,400,890) 20,189,736 515,000 C, m Capital leases Zions National Bank 1,764 585 - (1 764 585) - - Total capital leases 1,764,585 - (1,764,585) - - ti Total long-term liabilities $ 24,355,211 $ - $ (4,165,475) $ 20,189,736 $ 515,000 a 2004 Refunding Tax Allocation Bonds In August of 2004, the former CRA issued the $13,000,000 Refunding Tax Allocation Bonds, x Series 2004 The Bonds were issued to refund the $3,695,000 outstanding Tax Allocation Bond w Series 1993 A, the $1,290,000 outstanding Zions First National Bank loan, the $2,780,000 outstanding Tax Allocation Bond Series 1993 B, and to finance certain redevelopment activities B of the former CRA Interest varies from 2 00% to 3 75% and is payable semiannually on March 1 and September 1, commencing March 1, 2005 Principal payments are due annually a commencing September 1, 2005 through September 1, 2012 54 Packet Pg 179 11a City of Grand Terrace Notes to Financial Statements June 30, 2013 Note 14 Successor Agency Private -Purpose Trust Fund to the Former Redevelopment Agency (continued) c 2011 B Taxable Tax Allocation Bonds In June of 2011, the former CRA issued the $5,650,000 Community Redevelopment Project Area Taxable Tax Allocation Bonds, Issue of 2011 B The Bonds were issued for the purpose of acquiring land for resale and development in the Project Area Interest vanes from 7 10% to 7 70% and is payable semiannually on March 1 and September 1, commencing September 1, 2011 Principal payments are due annually commencing September 1, 2012 through September 1, 2026 The Bonds are payable from and secured by a pledge of Tax Increment, less amounts required to make payments under the Pass -Through Agreements, annual debt service of the 2004 Bonds and the Housing Set -Aside Amount The 2011 B Tax Allocation Bond was transferred to the Successor Agency on February 1, 2012 as a result of the Redevelopment Agency closure Debt service payments to maturity for the 2011 B Taxable Tax Allocation Bonds are as follows Year Ending June 30, Principal 2014 $ 235,000 2015 2016 2017 2018 2019-2023 2024-2027 Total 255,000 270,000 290,000 310,000 1,930,000 2,140,000 Interest $ 403,470 386,785 368,680 349,510 317,915 1,205,425 344,960 $ 5,430,000 $ 3,376,745 to LO c d E Ell 56 Packet Pg 181 m 0 r°. n Gi° Attachment Exhibit A - Annual Financial Report 06_30_2013 (1555 Annual Financial Report for the Year Ended June 30, 2013) 11a Required Supplementary Information City of Grand Terrace Budgetary Comparison Schedule Street Improvement Fund For the year ended June 30, 2013 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 2,000 $ 2,000 $ 2,815 $ 815 Developer fees 5,000 5,000 - (5,000) Total revenues 7,000 7,000 2,815 $ (4,185) Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balance 7,000 7,000 2,815 (4,185) (366,284) (366,284) (262,793) 103,491 (366,284) (366,284) (262,793) 103,491 (359,284) (359,284) (259,978) 99,306 Fund balance - beginning of year 1,292,515 1,292,515 1,292,515 - Fund balance - end of year $ 933,231 $ 933,231 $ 1,032,537 $ 99,306 58 Packet Pg 185 11a Required Supplementary Information City of Grand Terrace Budgetary Comparison Schedule Child Care Center Fund For the year ended June 30, 2013 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services $ 1,046,306 $ 1,046,306 $ 1,109,957 $ 63,651 Use of money and property - - 31 31 Miscellaneous - - 552 552 Total revenues 1,046,306 1,046,306 1,110,540 64,234 EXPENDITURES Cultural and recreation 852,730 852,730 886,810 (34,080) 852,730 852,730 886,810 (34,080) Excess (deficiency) of revenues over (under) expenditures 193,576 193,576 223,730 30,154 OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - beginning of year Fund balance - end of year (198,867) (198,867) (196,884) 1,983 (198,867) (198,867) (196,884) 1,983 (5,291) (5,291) 26,846 32,137 $ (5,291) $ (5,291) $ 26,846 $ 32,137 60 Packet Pg 187 11a City of Grand Terrace Combining Balance Sheet Nonmajor Governmental Funds June 30, 2013 ASSETS Cash and investments Accrued revenue Due from other funds Due from other governments Total assets LIABILITIES AND FUND BALANCES Liabilities Accounts payable Accrued liabilities Due to other funds Total liabilities Fund balances Restricted for Public works Community development Unassigned Total fund balances (deficit) Total liabilities and fund balances Special Revenue Funds Storm Drain Park AB 3229 Air Quality Improvement Development COPS Fund Improvement $ 72,455 $ 233,797 $ - $ 71,874 - - 10,239 7,626 $ 72,455 $ 233,797 $ 10,239 $ 79,500 $ - $ 716 $ - $ - - 11,174 - - 716 11,174 - 72,455 - - 79,500 - 233,081 - - - - (935) - 72,455 233,081 (935) 79,500 $ 72,455 $ 233,797 $ 10,239 $ 79,500 W LO LO M T O N 0 MI CO 0 0 a W �a �a w _ a x w d E �a a 61 Packet Pg 189 --I fA M m to m fD C1 O 7 CD 7 C O 7 SO Attachment Exhibit A - Annual Financial Report 06_30_2013 (1555 Annual Financial Report for the Year Ended June 30, 2013) 11a City of Grand Terrace Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the year ended June 30, 2013 Special Revenue Funds Storm Drain Park AB 3229 Air Quality Improvement Development COPS Fund Improvement REVENUES Intergovernmental $ - $ - $ 100,021 $ 14,665 Fines and forfeitures - - - - Use of money and property 164 525 (28) 154 Other - - - - Total revenues 164 525 99,993 14,819 EXPENDITURES Current Public safety - - 100,000 - Public works - - - - Capital outlay Project improvement costs - - - - Total expenditures - - 100,000 - Excess (deficiency) of revenues over (under) expenditures 164 525 (7) 14,819 OTHER FINANCING SOURCES (USES) Transfers in - - - 7 Transfers out - (2,361) (495) - Total other financing sources (uses) - (2,361) (495) 7 Net change in fund balances 164 (1,836) (502) 14,826 Fund balances (deficit) - beginning 72,291 234,917 (433) 64,674 Fund balances (deficit) - ending $ 72,455 $ 233,081 $ (935) $ 79,500 to to LO M O N o� MI �D O V- 0 Q. m ea �a _ �a 0 a t x w .r c m E cc Q 64 Packet Pg 193 11a City of Grand Terrace Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the year ended June 30, 2013 Capital Projects Funds Total Barton / Capital Total Capital Nonmajor Street Colton Projects/Bonds Projects Governmental Improvement Bridge Proceeds Funds Funds REVENUES Intergovernmental $ - $ 33,641 $ - $ 33,641 $ 704,397 Fines and forfeitures - - - - 46,655 Use of money and property (335) (53) (359) (747) 1,470 Other - - 198,009 198,009 198,009 Total revenues (335) 33,588 197,650 230,903 950,531 EXPENDITURES Current Public safety - - - - 113,321 Public works 216,559 - - 216,559 537,022 Capital outlay Project improvement costs - - 198,009 198,009 198,009 Total expenditures 216,559 - 198,009 414,568 848,352 Excess (deficiency) of revenues over (under) expenditures (216,894) 33,588 (359) (183,665) 102,179 OTHER FINANCING SOURCES (USES) Transfers in 216,559 - - 216,559 320,781 Transfers out - - - - (62,430) Total other financing sources (uses) 216,659 - - 216,559 258,351 Net change in fund balances (335) 33,588 (359) 32,894 360,530 Fund balances (deficit) - beginnmg 31,826 (31,263) 11 574 902,700 Fund balances (deficit) - ending $ 31,491 $ 2,325 $ (348) $ 33,468 $ 1,263,230 66 1Packet Pg 195 11b The Honorable City Council July 18, 2014 City of Grand Terrace Page 2 Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management Management has corrected all such misstatements The following material misstatements were detected as a result of audit procedures were corrected by management Adjustments were required to correctly report governmental revenues and deferred revenues Adjustments were required to report additional capital asset costs for two construction in progress projects Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a ¢ financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report We are pleased to report that no such disagreements arose during the course of our audit d Management Representations 3 as We have requested certain representations from management that are included in the management representation letter dated July 18, 2014 0 Management Consultations with Other Independent Accountants V a In some cases, management may decide to consult with other accountants about auditing and m accounting matters, similar to obtaining a "second opinion" on certain situations If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those W statements, our professional standards require the consulting accountant to check with us to c determine that the consultant has all the relevant facts To our knowledge, there were no such E consultations with other accountants cc a Packet Pg 197 11c ROGERS ANDERSON, MALODY & SCOTT LLP CERTIFIED PUBLIC ACCOUNTANTS SINCE 1948 735 E Carnegie Dr Suite 100 d San Bernardino CA 92408 C 909 889 0871 T 909 889 5361 F INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL ramscpa net OVER FINANCIAL REPORTING AND ON COMPLIANCE AND c OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL w PARTNERS STATEMENTS PERFORMED IN ACCORDANCE WITH d Brenda L Odle CPA MST GOVERNMENT AUDITING STANDARDS m Terry P Shea CPA r Kirk A. Franks CPA L Matthew B Wilson CPA MSA CGMA Scott W Manno CPA CGMA The Honorable City Council c Leona Shanbhag CPA MST CGMA City of Grand Terrace, California >Z Jay H Zercher CPA (Partner Emeritus) tY WI Phillip H Waller CPA (Partner Emeritus) We have audited, in accordance with the auditing standards generally S MANAGERS / STAFF accepted in the United States of America and the standards applicable to Bradford A WeMST CPA MBA financial audits contained in Govemment Auditing Standards issued by = Jenny Liu CPA MST the Comptroller General of the United States, the financial statements of LL Papa Matar Thaw CPA MBA Maya S Ivanova CPA MBA the governmental activities, the business -type activities, each major fund, Seong Hyea Lee CPA MBA and the aggregate remaining fund information of the City of Grand a Charles De Simom CPA Terrace, California (City), as of and for the year ended June 30, 2013, Yiann Fang CPA Daniel T Turner CPA MSA and the related notes to the financial statements, which collectively W David D Henwood CPA comprise the City's basic financial statements, and have issued our report Nathan Statham CPA, MBA thereon dated August 22, 2014 Brigitta Bartha CPA p Gardenya Duran CPA Juan Romero CPA Internal Control Over Financial Reporting Q. Ivan Gonzales CPA, MSA qD In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control Accordingly, we do not express an opinion on the effectiveness of the City's internal control A deficiency in internal control exists when the design or operation of a L control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, MEMBERS misstatements on a timely basis A matenal weakness is a deficiency, or V American InstitPubic Accountants to of Certified Public a combination of deficiencies, in internal control, such that there is a = � reasonable possibility that a material misstatement of the entity's financial Z PCPS CPA Firms Therms Alliance statements will not be prevented, or detected and corrected on a timely w for for C Governmental Audit basis A significant deficiency is a deficiency, or a combination of = Quality Center deficiencies, in internal control that is less severe than a material California Society of weakness, yet important enough to merit attention by those charged with Certified Public Accountants governance w a STABILITY ACCURACY TRUST I Packet Pg 199 11c City of Grand Terrace Grand Terrace, California Schedule of Findings and Questioned Costs For The Fiscal Year Ended June 30, 2013 SECTION I - SUMMARY OF AUDITOR'S RESULTS Financial Statements Internal control over financial reporting Material weakness(es) identified? _yes X no Significant Deficiency(s) identified that are not considered to be material weaknesses yes X none reported Noncompliance material to financial statements noted X yes no SECTION II - FINDINGS — FINANCIAL STATEMENTS AUDIT COMPLIANCE FINDINGS 2013-01 Critena SEC Rule 95c2-12 - Continuing Disclosures states that local governments must submit annual disclosures on or before the date specified in the continuing disclosure agreement, 15 days prior to March 31, 9 months following end of a fiscal year Condition The fiscal year 2012-2013 continuing disclosure report for 2011 Tax Allocation Bonds series A and B was submitted July 28, 2014, which was four months after the required submission date Effect This signified a noncompliance to SEC Rule 15c2-12 Continuing Disclosures and the debt covenant Cause The City experienced a delay in finalizing the professional contract service with the third party service provider Auditor's recommendation We recommend the City carefully reviews the continuing disclosure agreements The City is required to submit its annual disclosure to Electronic Municipal Market Access, by the annual deadline stated in the continuing disclosure agreements Management's response The City provided the information to the disseminating agent in March 2014 However, to complete the Annual Report, the agent was waiting for the City's financial statements before submitting all the documents to EMMA The financial statements were not completed until July 2014 LO W LO Packet Pg 201 as`> 11 d The Honorable City Council City of Grand Terrace, California Page 2 3 We agreed the current year information presented in the accompanying Appropriations Limit worksheet to the other documents referenced in #1 above Finding No exceptions were noted as a result of our procedures 4 We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet to the prior year appropriations limit adopted by the City Council during the prior year Finding No exceptions were noted as a result of our procedures We were not engaged to, and did not, perform an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit worksheet Accordingly, LL we do not express such an opinion Had we performed additional procedures, other matters might have come to our attention that would have been reported to you No procedures have been performed with respect to the determination of the appropriation limit for the base year, as a defined by the League publication entitled Article Xlll-8 of the California Constitution LO LO This report is intended solely for the information and use of the City Council and management of the City of Grand Terrace, California and is not intended to be, and should not be, used by anyone other than these specified parties However, this report is a matter of public record and its distribution is not limited d �o .�aJ (,l'nc(a,L4 o ti al Dili t' So7r L ll� July 18, 2014 Q Packet Pg 203 TITLE PRESENTED BY RECOMMENDATION AGENDA REPORT September 23, 2014 Participation in Communities of Distinction Television Series Kenneth Henderson, Interim City Manager Consider Participation in Communities of Distinction Occasional Television Series 2030 VISION STATEMENT This staff report supports Our Vision " a place where residents enjoy an outstanding quality of life that fosters pride and an engaged community, encouraging families to come and remain for generations and Goal #3 "Promote Economic Development" BACKGROUND The syndicated television show, Communities of Distinction, previously contacted the City of Grand Terrace in 2011 regarding its possible participation in the occasional series hosted by former National Football League quarterback, Terry Bradshaw Because of financial circumstances, including what ultimately resulted in the dissolution of redevelopment agencies throughout the state, the City Council opted to not participate in the series because of the anticipated costs involved Last week, staff was again contacted by Communities of Distinction representatives Production personnel responsible for program development remain interested in Grand Terrace and are hoping the interest is mutual DISCUSSION At the request of Communities of Distinction production personnel, a telephone conference was conducted with the Mayor and the City Manager for the purpose of outlining the show and ascertaining whether or not the City has an interest in participating in a future show By and large, Communities of Distinction employs an educational approach, as described below by the show's Executive Producer, "It is our goal to expose viewers to all the hidden gems spread throughout North America," explains Paul Scott, Executive Producer for Communities of Distinction "It never ceases to amaze me just how many thriving communities you'll find within your own borders, you begin to realize that it's really these towns and cities that are the lifeblood of the nation Join us in this special series of the show, as we explore the cities and towns countless Americans call home, and discover why it's their chosen place to live, work, and play " Packet Pg 205