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05/30/2017 SP1 CITY OF GRAND TERRACE r AGENDA & STAFF REPORTS FOR CITY COUNCIL AND CITY COUNCIL AS SUCCESSOR AGENCY Tuesday, May 30, 2017 6.00 p.m. Special Meeting f COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 Darcy McNaboe, Mayor Sylvia Robles, Mayor Pro Tern Doug Wilson, Council Member Bill Hussey, Council Member Brian Reinarz, Council Member 4 G Harold Duffey, City Manager Richard L Adams, City Attorney Debra Thomas, City Clerk Linda Phillips, Child Care Director Alan French, Public Works Director Sandra, Molina, Planning & Development Servics Director - Cynthia A Fortune, Assistant City Manager The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6 00 p m A B CITY OF GRAND TERRACE CITY COUNCIL AND CITY COUNCIL AS SUCCESSOR AGENCY AGENDA • MAY 30, 2017 Council Chambers Special 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 Darcy McNaboeV Mayor Pro Tern Sylvia Robles Present ❑ ❑ Absent J ❑ -� I ❑ Late Arrived ❑ ❑� Council Member Doug Wilson ❑ ❑ ❑ Council Member Bill Hussey ❑ 1 ❑ ❑ Council Member Brian Reinarz ❑ ❑ ❑ SPECIAL PRESENTATIONS - NONE I 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 City of Grand Terrace Page 1 Agenda Grand Terrace City Council and Successor Agency May 30, 2017 0 F UNFINISHED BUSINESS - NONE G NEW BUSINESS 1 Child Care Service Program RECOMMENDATION 1 Approve the termination of City provided Child Care Services and the elimination of the Child Care Department effective at the end of the work day on June 30, 2017, 2 Authorize the Lay-off of the child care personnel, also effective at the end of the work day on June 30, 2017 and instruct the City Manager to issue lay-off notices DEPARTMENT CITY MANAGER 2 Child Care Services Lease Agreement with Family Services Association RECOMMENDATION Approve a Lease Agreement with Family Service Association in substantially similar form to the attached Lease Agreement DEPARTMENT CITY MANAGER } 3 Introduction of Proposed Budget for Fiscal Year 2017-18 RECOMMENDATION 1 Receive and file the Proposed Budget for Fiscal Year 2017-18, and 2 Begin budget deliberations for the Proposed Budget for Fiscal year 2017-18 DEPARTMENT CITY MANAGER H CITY MANAGER COMMUNICATIONS I CLOSED SESSION - NONE d J ADJOURN The Next Regular City Council Meeting will be held on Tuesday, June 13, 2017 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 3 MEETING DATE May 30, 2017 COUncll Item a TITLE Child Care Service Program PRESENTED BY G Harold Duffey, City Manager RECOMMENDATION 1 Approve the termination of City provided Child Care Services and the elimination of the Child Care Department effective at the end of the work day on June 30, 2017, 2 Authorize the Lay-off of the child care personnel, also effective at the end of the work day on June 30, 2017 and instruct the City Manager to issue lay-off notices 2030 VISION STATEMENT This staff report supports City Council Goal #1 "Ensure our Fiscal Viability" through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations BACKGROUND On July 1, 2012, Child Care Services was moved from the General Fund into its own Special Revenue Fund as requested and approved by City Council It was intended that the Child Care Services Fund be self-supporting, including charging the fund a cost allocation for general government services provided by the City This includes payroll, invoice and purchasing processing, human resources support, maintenance of facilities, and other administrative tasks In order for the Child Care program to be self-supporting, rate increases were requested and approved by Council during the following fiscal years • FY2012-13 (13 5%), • FY2013-14 (2%), • FY2014-15 (6%) • FY2015-16 (2 5%), and • FY2016-17 (21 4%) The Child Care Services rates were raised to cover the cost increases, minimum wage requirements, allow the Child care program to be self-supporting and to be more competitive with current market rates DISCUSSION The rate increases that were implemented through the last few years were unable to keep up with increased health insurance rates, increased retirement contributions rates and necessary maintenance improvements needed for the Child Care facility which Packet Pg 4 z G2 AGENDA REPORT MEETING DATE May 30, 2017 Council Item TITLE Child Care Services Lease Agreement with Family Services Association PRESENTED BY G Duffey, City Manager RECOMMENDATION Approve a Lease Agreement with Family Service Association in substantially similar form to the attached Lease Agreement 2030 VISION STATEMENT This staff report supports City Council Goal #1 "Ensure our Fiscal Viability" through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations BACKGROUND This agenda item is brought in connection with the adjacent agenda item regarding ending the City's Child Care Program Upon the ending of the child care program, the City will be left with a potential asset in the form of a vacant building In order to both capitalize on this asset and to minimize the reduction in service to enrollees in the child care program and City staff, the attached Lease Agreement is being presented for your adoption Family Service Association, a California Domestic Nonprofit corporation has agreed to lease the child care property committing to the operation of a private child care program at the property Family Service Association will lease the property for a term of three years paying base rent in Year 1 in the amount of $10,000 00, Year 2 in the amount of $11,000 00, and Year 3 in the amount of $12,000 00 In addition, they will pay additional rent in an amount equaling 50% of their net revenue over $150,000 00 up to a maximum additional rent payment of $150,000 00 to City, exclusive of the base rent However, Family Service Association is also being granted an Option to Purchase the Property for $1,000,000 00, which may be exercised within Year 1 Fifty Percent of any rent actually paid to the City within that first year will be credited toward the Purchase price Family Service Association agrees to be responsible for maintenance and repair of the Property in good condition However, during the first year, Family Service Association shall not pay more than $750 for any individual repair or cumulative cost of $5,000 00 for repair This cap applies to repair only and not general maintenance or janitorial services Any reasonably required repair in the first year which exceeds the cap will be paid by City After the first year, The City will not be obligated for any repair 'Packet ig 6 G2a FAMILY SERVICE ASSOCIATION/CITY OF GRAND TERRACE, CA LEASE AGREEMENT THIS LEASE AGREEMENT is by and between the City of Grand Terrace, a municipal corporation ("Lessor"/"City"), and Family Service Association, a California domestic non-profit corporation ("Lessee") WITNESSETH A Lessor is the owner of a real property identified as 22400 Barton Road, Grand Terrace, California including all structures and appurtenances thereon which real property is more specifically described in Exhibit A ("Property") B Lessor and Lessee desire to enter into this Lease Agreement for the lease of the Property for the purpose of Lessee operating a child care program thereon for a term of three (3) years with an option to purchase the Property NOW, THEREFORE, the parties hereby agree as follows SECTION 1 TERM AND TERMINATION 1 1 Term The term of the Lease Agreement shall be three years commencing on July 1, 2017 ("Commencement Date") and terminating on June 30, 2020 (the "Term"), unless sooner terminated as provided herein 12 Termination Commencing June 30, 2018, this lease may be terminated by either party upon on less than 90 days written notice prior to the beginning of the next semester SECTION 2 CONSIDERATION 2 1 Base Rent Commencing on the Commencement Date, Lessee shall pay Base Rent in consideration of the lease of said Property and Equipment to Lessor as follows Year 1 (July 1, 2017 — June 30, 2018) $10,000 00 Year 2 (July 1, 2018 — June 30, 2019) $11,000 00 Year 3 (July 1, 2019 — June 30, 2020) $12,000 00 22 Additional Rent In addition, Lessee agrees to pay to Lessor Additional Rent equaling 50% of Lessee's Net Revenue exceeding $150,000 00 up to a maximum additional rent amount of $150,000 00 For example, if Lessee receives Net Revenue of $170,000 Lessee shall pay additional rent to City of $10,000 ($170,000 00 - $150,000 00=$20,000 00 x 50 = $10,000 00) For purposes of calculating Additional Rent, Net Revenue shall not be less than 15% of Lessee's Gross revenue In addition, Additional Rent shall not exceed $150,000 00 exclusive of base rent 2 3 Payment Schedule Base Rent shall be due and payable in equal monthly installments to Lessor commencing on the Commencement date ("Rent") Subsequent Base _ Rent shall be due on the first (1st) day of each month during the Term, and Lessee shall have the right, but not the obligation, to prepay Rent in advance Additional Rent shall be due and Child Care Facility Page I 1 Lease Agreement Q Packet Pg 8 G2a SECTION 4 USE OF PROPERTY AND EQUIPMENT 41 Use Lessee shall use the Property and Equipment for the sole purpose of operating a child care facility on said Property in conformity with all applicable federal, state, and local laws and regulations Notwithstanding the foregoing, Lessee may engage in any use compatible with or in support of the operation of a child care facility If Lessee would like to use the Property for anything other than what is set forth in this Agreement, Lessee shall obtain prior written consent from Lessor 42 Compliance with Laws Lessee,) in its use of the Property, shall comply at all times with all applicable federal, state and local governmental laws and regulations applicable to the Property and operation of a child care facility, including but not limited to acquisition of all licensing, certifications, and permits required under federal, state, or local law or regulation for operation of a child care facility Lessor agrees to cooperate and make all commercially reasonable efforts to transfer to Lessee all state licenses carried by Lessor for the operation of a child care facility 43 No Waste or Nuisance Lessee shall not use the Property in a manner that will cause the cancellation of any insurance policy covering the Property required by this Agreement to be maintained by Lessee unless Lessee has first replaced such policy at Lessee's cost In this regard, Lessee shall, at its sole cost and expense, comply with all commercially reasonable requirements pertaining to the Property or any reasonable insurance organization or company necessary for the maintenance of insurance on and for said Property Lessee shall not commit or permit any waste in or on the Property or any nuisance or any other act or thing which may disturb the quiet enjoyment of adjoining landowners or tenants 44 Lessee Responsible for Damage Lessee shall remain solely and exclusively s responsible and liable for any and all damage caused to the Property by Lessee's use of said v Property c r N 45 Noncompliance is a Material Breach Noncompliance with this section shall constitute a material breach of this Agreement SECTION 5 MAINTENANCE, ALTERATIONS, SURRENDER 5 1 Maintenance Except as set forth below, Lessee shall, throughout the Term, at its sole cost and expense, keep and maintain the Property and Equipment in neat order, good condition and repair, and shall restore and, subject to Section 26, to the extent of insurance proceeds received from policies required to be maintained by Lessee hereunder, rehabilitate any improvements which may be destroyed or damaged by any cause whatsoever Lessor shall not be obligated to make any repairs, replacements or renewals of any kind, nature or description whatsoever to the Property, except as set forth in this Agreement Without limiting the foregoing, Lessee shall be solely responsible for (a) maintenance of the roof, interior and exterior walls, the exterior recreational and play areas, all heating and air conditioning equipment, kitchen facilities, and plumbing, (b) repair, maintenance, and upkeep of the interior of the Property, including but not limited to paint, floor coverings, partitions, light fixtures, plumbing fixtures, electrical systems, window glass, and all other interior portions of the Property, (c) maintenance and upkeep of the exterior of the Property, including parking lot maintenance and repair, and maintenance and upkeep of landscape and hardscape on the Property exterior, and (d) using commercially reasonable maintenance and w Q Child Care Facility Page I 1 Lease Agreement Packet Pg 10 G2a furmshed to the Property or Lessee's business to be transferred into Lessee's name for Lessee's use during the Term and shall be paid for by the Lessee SECTION 7 LESSEE'S SIGNS No sign or other permanent advertisement shall be displayed on the outside of the Property without the prior written consent of Lessor, which consent shall not be unreasonably withheld Temporary banners and similar devices shall be permitted so long as they are consistent with Lessee's permitted use hereunder and with all applicable zoning and land use requirements In addition, a permanent sign or advertisement shall be reasonable if (a) it is consistent with Lessee's permitted use of the Property, and (b) is in compliance with applicable laws and regulations Lessor consents to all existing signs or advertisements displayed on the exterior of the Property on the commencement of the Term SECTION 8 LIENS Lessee shall keep the fee estate of said Property free and clear from all mechanics and materialmen liens and other liens for work or labor done, services performed, materials, appliances used, or furnished or to be used in or about the Property for or in connection with any operation of Lessee, for any repairs or improvements which Lessee may make or permit to cause to be made, or any work or construction by, for or permitted by Lessee on or about said Property SECTION 9 INDEMNIFICATION Lessee agrees to defend, indemnify, hold free and harmless Lessor, its elected v officials, officers, agents, volunteers and employees ("Indemntees") at Lessee's sole expense from and against any and all claims, demands,' suits, actions or proceedings of any kind or nature including, but not by way of limitation, all civil claims, workers' compensation claims, damages to property, or injuries to or death of any person or persons, rn and all other claims resulting from or arising out of the use or occupancy of the Property by or the acts, errors or omissions of Lessee, its officers, agents, volunteers, employees, occupants, visitors or other users and/or authorized subcontractors, whether intentional or o negligent, except to the extent such claim, demand, suit, action or proceeding, civil claim, w worker's compensation claim, damage to property, injury to or death of any person arises 0 from the sole active negligence or willful misconduct of Indemmtees _. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by Lessee, its officers, agents, volunteers, employees, occupants, visitors or other users and/or authorized subcontractors, but shall be required whenever any claim, demand, suit, action or proceeding, civil claim, worker's compensation claim, damage to property, injury to or death of any person asserts liability against Indemmtees based upon Lessee, its officers, agents, volunteers, employees, occupants, visitors or other users and/or authorized subcontractors use or occupancy of the Property or the acts, errors or omissions of Lessee, its officers, agents, volunteers, employees, occupants, visitors or other users and/or authorized subcontractors SECTION 10 ASSIGNMENT AND SUBLETT w Q Child Care Facility Page 11 Lease Agreement Packet Pg 12 G2a The effective date of any notice or written communications sent by one party to the other shall be the date received if by personal service, the date of the overnight delivery company's confirmation of delivery if sent by overnight delivery, or three (3) business days after deposit in the US Mail if sent by mail (as reflected by official US postmark) Either party may change its address by giving notice in writing to the other party SECTION 14 BANKRUPTCY A The Lessor and the Lessee hereby expressly agree and acknowledge that it is the intention of both parties that in the event that during the term of this Agreement if Lessee shall become a debtor to any voluntary or involuntary bankruptcy proceeding (a "Proceeding") under the United States Bankruptcy Code, 11 U S C 101, et seq (the "Code"), this Agreement is and shall be treated for all purposes and considered for all intents as an unexpired lease of nonresidential real property for purposes of Section 365 of the Code, 11 U S C 365 (as may be amended), and, accordingly, shall be subject to the provisions of subsections (d)(3) and (d)(4) of said Section 365 (as may be amended) B Any person or entity to which this Agreement is assigned pursuant to the cn provisions of the Bankruptcy Code, 11 USC Sections 101, et seq , shall be deemed without further act to have assumed all of the obligations of Lessee arising under this Agreement both v before and after the date of such assignment Any such assignee upon demand shall execute and ° .c deliver to Lessor an instrument confirming such assumption Any monies or other v considerations payable or otherwise to be delivered in connection with such assignment shall be paid to Lessor, shall be the exclusive property of Lessor, and shall not constitute property of the N Lessee or of the estate of Lessee within the meaning of the Bankruptcy Code Any monies or other considerations constituting Lessor's property under the preceding sentence not paid or c delivered to Lessor shall be held in trust for the benefit of Lessor and be promptly paid to Lessor N SECTION 15 ABANDONMENT BY LESSEE If Lessee shall fail to use the Property, which is fit for occupancy, for a period of ninety (90) consecutive days, the Property shall be considered abandoned and the Term terminated SECTION 16 WAIVER The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver Child Care Facility Page 11 Lease Agreement Packet Pg 14 G2a 176 Lessee will provide notice to Lessor of cancellation, suspension, or reduction in coverage immediately upon receipt of notice of same by Lessee, but in no event shall Lessee notify Lessor later than thirty (30) days following Lessee's receipt of said notice SECTION 18 SUBSTITUTE PERFORMANCE If Lessee fails to perform any material obligation of Lessee under this Agreement within thirty (30) days after written notice from Lessor describing the performance in reasonable detail, which notice shall not be sent until after the due date for such performance, then Lessor shall have the right to perform the obligation at the cost of Lessee, and Lessee shall pay Lessor the reasonable cost of such performance within thirty (30) days after Lessee's receipt of an invoice for the same and reasonable supporting documentation SECTION 19 ATTORNEYS' FEES In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses including reasonable attorneys' fees incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof SECTION 20 REPRESENTATIVES Lessor's City Manager or his/her designee shall be the representative of Lessor for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of Lessor called for by this Agreement The current City Manager for Lessor on commencement of the Term is G Harold Duffey The of Lessee or his/her designee shall be the representative of Lessee for purposes of this Agreement, and of Lessee is the on commencement of the Term Either party to this Agreement shall have the right to change such party's representative at any time by written notice to the other party SECTION 21 HAZARDOUS MATERIALS As used herein the term "Hazardous Material" means any hazardous or toxic substance, material or waste which is or shall become regulated by any governmental entity, including without limitation, City acting in its governmental capacity, the State of California or the United States Government 21 1 Lessee shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Property except as specifically authorized by Lessor in writing Any such authorization by Lessor shall not alter or reduce Lessee's obligations under this section, including but not limited to its duty to indemnify and defend Lessor for any contaminations which may occur as a result of Lessee's use of the authorized material w Q Child Care Facility Page 11 Lease Agreement µPacket Fig 16 G2a 243 Non -Disturbance With respect to all Security Devices entered into by Lessor (whether existing prior to the commencement of the Term or thereafter), Lessee's subordination of this Agreement shall be subject to receiving a non -disturbance agreement, in form and content reasonably acceptable to Lessee, providing that so long as Lessee performs its obligations under this Agreement, Lessee's quiet use, enjoyment and possession of the Property shall not be disturbed by any holder of a Security Device Concurrently with execution and delivery of this Agreement, Lessor shall deliver to Lessee a non -disturbance agreement for each Security Device (if any exists) relating to the Property that is in existence as of the commencement of the Term 244 Self -Executing Subject to Lessee's receipt of the non -disturbance agreement(s) specified in Section 24 3, the agreements contained in this Section 24 shall be effective without the execution of any further documents, provided however, that upon written request from Lessor or a Lessor lender in connection with a sale, financing or refinancing of the Property, Lessee and Lessor shall execute such further writings as may be reasonable required to separately document any such subordination, attornment and/or non -disturbance agreement as is provided for herein SECTION 25 NO REPRESENTATION, WARRANTY, OR GUARANTEE Lessee acknowledges and agrees the Lessor is not malting any representation, warranty, or guarantee in this Agreement regarding any certificate, permit, or other approval that may be required by any Federal, State, or local authority, including by Lessor in its capacity as municipal land use authority, which may be required of Lessee By way of explanation, this Section is not intended to prohibit or restrict Lessee's use of the Property during the term of this Agreement, but IS intended to establish that the Lessor is not making any promises in regards to approval of any future proposed uses of the Property or in regards to any governmental approval Lessee may require in the future SECTION 26 DAMAGE AND DESTRUCTION N In the event of any damage or destruction of the Property or the improvements to a the Property ° III 26 1 If caused by Lessor or its representatives or agents, then Lessor shall, at Lessor's cost, promptly repair and restore the Property to the condition in effect immediately prior to the casualty 262 If not caused by Lessor or its representatives or agents, then (i) within one hundred and twenty days (120) days after the casualty, Lessee shall notify Lessor in writing of Lessee's election to either repair and restore the Property, or (ii) terminate this Agreement If Lessee elects to terminate the Agreement, then (a) the Agreement shall terminate on the date set forth in notice from Lessee,'which date shall be no less than 90 days after the date of the casualty, and (b) any available insurance proceeds from insurance required to be carried by Lessee or Lessor pursuant to this Agreement shall be paid to Lessor If Lessee elects to repair and restore the Property, then (1) any available insurance proceeds from insurance required to be carried by Lessee or Lessor pursuant to this Agreement shall be applied to such repair and restoration efforts, (2) Lessee shall commence such repair and restoration efforts within one hundred and eighty (180) days after the date of the casualty and shall use commercially reasonable efforts to complete Child Care Facility Page 11 Lease Agreement Packet Pg 18 M, G 21a Lessor cannot agree upon an appraiser, then Lessee and Lessor shall each select an appraiser, the two of whom shall mutually agree upon a third appraiser to perform the appraisal The appraiser shall establish the valuation for the Lessee and Lessor by considering the highest and best use of the Property based upon its condition at the time of exercise of the Option and subject to any and all encumbrances including rights to access and existing or likely future environmental conditions 29 4 During the term of the Option, prior to Lessee's exercise of said Option and continuing through actual acquisition of the Property, Lessee shall remain responsible to keep and maintain the Property in good repair 295 In the event of transfer of the Property, each side will bear its own costs for any attorney, staff, or consultant time involved in the transaction, except that Lessee shall be responsible to pay for any commercial broker The Lessor shall owe no commission on the sale of the Property All other closing costs shall be shared equally between Lessee and Lessor 296 Upon Lessee's exercise of it's Option, the parties shall, in good faith, negotiate all other terms of the purchase and sale IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed by and through their respective authorized officers, as of the date first above written FAMILY SERVICE ASSOCIATION, a California Domestic Nonprofit Corporation By Its CITY OF GRAND TERRACE, A Municipal Corporation By Darcy McNaboe Mayor APPROVED AS TO FORM Child Care Facility Lease Agreement Page I I w Q Packet Pg{ 20 Attachment Child Care Lease Agrmt revied rla [Revision 1] (2199 Child Care Services Lease Agreement with Family Services Association) r� a a� �CD _ m � y r� y r d` b CD T N i Attachment Child Care Lease Agrmt revied rla [Revision 1] (2199 Child Care Services Lease Agreement with Family Services Association) N MEETING DATE TITLE PRESENTED BY RECOMMENDATION AGENDA REPORT May 30, 2017 Council & Successor Agency Item Introduction of Proposed Budget for Fiscal Year 2017-18 Cynthia Fortune, Assistant City Manager 1 Receive and file the Proposed Budget for Fiscal Year 2017-18, and 2 Begin budget deliberations for the Proposed Budget for Fiscal year 2017-18 2030 VISION STATEMENT This staff report supports City Council Goal #1 "Ensure our Fiscal Viability" through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations BACKGROUND The Proposed Budget for Fiscal Year (FY) 2017-18 is submitted for City Council's review and deliberation prior to adoption The Proposed Budget shows the projected revenues and expenditures for the upcoming fiscal year Once adopted, the FY 2017- 18 Budget will serve as the City's financial plan for the upcoming fiscal year and as the basis for budgetary control All City funds are included in the Proposed Budget The focus is on the review and approval of the FY2017-18 budget requests r DISCUSSION , The total Proposed Budget for FY2017-18 is $14,706,333 The City's General Fund proposed balanced budget of $5,060,104, compared to the current budget of $4,785,106 (which is less $1,040,090 in one-time programmed expenditures — payment of the City Hall loan), is 5 75% more than the FY2016-17 budget The General Fund Proposed Balanced Budget presented for City Council's review and consideration, • Supports the City's mission, vision, core values and goals by preserving and protecting the community and its exceptional quality of life, • Increases the current level of service to the residents of Grand Terrace, with focused efforts on public safety and economic development, • Does not use fund balance to fund operations in FY 2017-18, and • Recognizes the continuingly strong economic recovery in the City and strategically invests in the City's economic future The City hosted a Budget in the Park meeting at the Grand Terrace Fitness Park This meeting was intended to provide information to residents regarding the City's services, Packet Pg ¢ 25 Fund Fund Title ACTIVE TRANSPORTATION PRGRM FUND Estimated Proposed ; Proposed Fixed Asset Surplus or Proposed Use of Fund Balance_] I 1 0 Revenues, FY2017-18 Expenditures, FY_20.17_-18 1Replacements I 280,000 ; 0 73 280,000 74 HIGHWAY SAFETY IMPROV ; PROGRAM j 420,000 1 420,000 I 0 0 I I 75 I EMPG - EMER MGMT PREP bRANT 0 0 0 0 SUCCESSOR AGENCY S/A RDA OBLIGATION RETIREMENT FUND 31 1 2,216,478 2,284,067 j 0 1 67,589 I 32 S/A CAPITAL PROJECTS FUND 257,707 ; 257,699 0 8 , 1 33 S/A DEBT SERVICE FUND j 2,026,360 2,026,360 0 0 36 2011 T�ABS�A & B BOND PROCEEDS 35,000 , 289,015 ; 0 254,015 i 37 ( S/A CRA PROJECTS TRUST \ 0 0 1 01 0 CAPITAL PROJECT FUNDS CAPITAL IMPROVEMENTS - STREETS I i 46 j 1,000,000 ' 1,000,000 1 0 0 47 I CAP PRJ BARTON/COLTON I BRIDGE 1 1 0 0 0 0 48 �j CAPITAL PROJECTS FUND 0 i 0 1 0 49 1 CAPITAL PROJECTS FUND- PARKS ' 360,000 360,000 _ j 0 I 0 J1 — 50 CAPITAL PROJECT BOND PROCEEDS ( 239,015 ' 239,015 0 I 0 52 1 HOUSING AUTHORITY 50,000 1 8,200 �T 0 41,800 i 71 0 L1 EQUIPMENT REPLACEMENT i RESERVE FUND _ _ 0� $11,892,293 0 -_ { 260,000 Q�p J_(J,874.0401 (260,000) Proposed 2017-18 Budget General Fund Revenues General Fund revenues include the following considerations • General Fund property taxes are projected to increase by 4 2%, (it should be noted that since all of Grand Terrace is part of the former redevelopment project area, all increased tax revenue goes to the Successor Agency), • Receipt of on -going funds of $300,000 annually from the waste water agreement between Grand Terrace and Colton, • Sales Taxes as projected by the City's sales tax consultant, HdL, (the economic Packet Pg127 'G3 POSITION Department Funding Source Effective Start Data Planning & Development Reclassification of an Office Services — Code j Specialist from part-time to Full time Enforcement General Fund j 07-01-2017 � I Funds with Requests for Use of Fund Balance The table below lists all the funds whose proposed expenditure appropriations are requesting the use of fund balance These are mainly due to projects previously approved by City Council and are continuing into the next fiscal year All funds listed below have sufficient fund balance to cover all requested expenditure appropriations 2017-18 2017-18 Proposed Surplus FUND Proposed Proposed or Use of Fund Balance -----___--� Revenue Expenditure 11 Street Fund ------- --- ----__ (Development Impact Fees) 91,900 1,000,000 (908,100) To implement street improvement projects as detailed in the City's 5-year Capital Improvement Program 13 Park Fund (Development Impact Fees) 52,000 310,000 (258,000) To implement the construction of the Dog Park 19 Facilities Fund (Development Impact Fees) 15,150 50,000 (34,850) To implement the upgrade of existing facilities 16 Traffic Safety Fund 10,175 20,000 (Special Revenue Fund) (9,825) To provide use for additional public safety devices and equipment 20 Measure "I" Fund 193,500 333,000 (Special Revenue Fund) (139,500) 1 To implement street projects as detailed in the City's Capital Projects Need Analysis (CPNA) and approved by San Bernardino Associated Governments (SanBAG) 64 Public Safety Fund 0 50,000 (Special Revenue Fund) (50,000) To provide use for additional public safety services Packet Pg 29 FISCAL IMPACT Fiscal impacts of the FY2017-18 Proposed Budget are identified in the FY2017-18 Proposed Budget Book APPROVALS Cynthia A Fortune Completed 05/28/2017 10 18 PM Finance Completed 05/28/2017 10 18 PM City Attorney Completed 05/28/2017 10 26 PM City Manager Completed 05/28/2017 10 29 PM City Council Pending 05/30/2017 12 00 AM 0 p - W Packet Pg 31 CITY OF GRAND TERRACE 2030 VISION and 2014-2020 STRATEGIC PLAN Our Mission To preserve and protect our communkty_and its exceptional quality of life #hrough thoughtful planning, within the constraints of fiscally responsible government S Our Vision Grand Terrace is an exceptionally safe and well managed Oty, known for its natural beauty recreational opportunities, a vibrant and diverse local economy, 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 Our Core ,Values _ r Opens and Inclusive Government ' Honesty and Integrity " 'Mutual Respect t Goals -.Exceptional Customer` Service f �+ Innovation -and Creativity _ `Po hive and Productwe Work Environment , Ensure Our Fiscal Viability t ,Commit to a Balanced Budget 'IdentifyAdditio'nal Revenue Sources J Review Expenditures and Seek Savings -Explore Creative -Means to Provide_ Services Ensur"e Appropriate Cost Recovery for Services ' f ' r { r !' 4; �� _' '—�� 1 ft—� S1 _ J 1a it i w 4 ut � 1l 2 Maintain Public Safety, _ Ensure Staff Levels for Police Services Remain Adequate for Our Community Invest in Critical'Improve►r'►ents to Infrastructure 3 Promote Economic Development _ 3 Develop Proactive Economic Development Plan to Attract New Businesses Invest in Infrastructure Needed to Support Business Attraction and Retention t Prepare for Development by Updating Zoning and Development Codes including the Sign Code I � 4 Develop and Implement Successful .'Partrie ships, f-�t Work Collaboratively with Community Groups;` Private and Public Sector Agencies to Facilitate the Delivery of Services Benefitting Youth, Seniors and Our Community Work with -Local, Regional and State Agencies to Secure Funding for Programs -and Projects 5 Engage in Proactive Communication Develop and Implement a Cost Effective Proactive Communication Program_ Utilize Technology and Web -Based ,Tools to Disseminate Information Engage the Community by Participation /,f f 5/30/2017 THE BLUE MOUNTAIN CITY y D TERR,4c V CALIFORNIA W, EST 1978 Hof Grand Terrace t flo posed budget Fiscal Year 2017-18 May, 30, 2017 s F; FY2017-18 Proposed Budget • Goal For 201F7/18 Budgetf • 1) ensure its fiscal viability • 2) maintain public safety • 3) promote economic development • 4) develop and implement successful partnerships • 5) engage in proactive communication 1 `r 5/30/2017 Citywide Expenditure Trend FY2014-15 FY2015-16 FY2016-17 FY201°7-18 $11,333,735 $10,460,306 $16,525,666 $14,966,333 The increase in FY2017-18 is mainly due to, Street Improvements (DIF &Measure I) $1,300,000 Dog Park 250,000 f CJUSD Swimming Pool 150,000 Use of Bond Proceeds 289,000 Equipment Replacement Requests 260,000 Highway Safety Impr Pgrm (HSIP) Grant 495,000 Active Transportation Prgm (ATP) Grant 280,000 Citywide Expenditure Trend {FY2014-15 FY201�5-16 FY2016,17 FY2L017-18P $111,333,735 $10�,460,306 $1'0,525,�666 $T4°,966,333; The increase in FY2017-18 is mainly due to: Strree I,movement� ( prDIF &Measure Dog Park 250,000 CJUS- w D imming Pool 150,000 se of Bond Proceeds 89,®00 Equipment Replacement Requests 260,000 Highway Safety Impr Pgrm (HSIP) Grant 495,000 Active Transportation Prgm (ATP) Grant 280,000 3 5/30/2017 Child Care Services Lease Agreement with Family Services Association (FSA) Lease Agreement 3 year lease • Option to purchase before June 30, 2018 — Rent will be $10,000 per month in 1st year — Rent will be $11,000 per month in 2"d year — Rent will be $12,000 per month ins 3rd year Purchase price $1,000,000 for building and equipment 1 1 S CITY OF GRAND TERRACE CITY COUNCIL AND CITY COUNCIL AS SUCCESSOR AGENCY a AGENDA • MAY 30, 2017 Council Chambers Special Meeting 6 00 PM Grand Terrace Civic Center • 22795 Barton Road Q 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 I -P --5 F) CALL TO ORDER Convene City Council and City Council as the Successor Agency to the Community Redevelopment Agency �&*r- OA a Invocation will be given by Pastor R&*4hweetfe, from The Brook Church Pledge of Allegiance Please join in leading us in the Pledge of Allegiance Roll Call Attendee Name Present Absent I Late { Arrived Mayor Darcy McNaboe ❑ ❑ Mayor Pro Tem Sylvia Robles ❑ ❑ Council Member Doug Wilson ❑ ❑ Council Member Bill Hussey ❑ ❑ Council Member Brian Reinarz ❑ ❑ `-n sal W 4 LI-OCt 46fVi- !� f SPECIAL PRESENTATIONS - NONE B CONSENT CALENDAR — ADoO $ t_ The following , Consent -Calendar items, are expected to be routine and noncontroversial They will be acted upon by the City Counc►I at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent calendar for discussion All Items Pulled Items jj City of Grand Terrace Page 1 Agenda Grand Terrace City Council and Successor Agency May 30, 2017 J Motion) Second Vote Ayes # Vote Nayes # 1 Waive Full Reading of Ordinances on Agenda DEPARTMENT CITY CLERK 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 clanf►cation. The Mayor may also request a brief response from staff to questions rased during public comment or may request a matter be agendized for a future meeting. Total Speakers D CITY COUNCIL COMMUNICATIONS Council Member Brian Re►narz r A'fl,�-Wa8 r Council Member Bill Hussey .,- MW2FAT44it- Council Member Doug Wilson Mayor Pro Tem Sylvia Robles_ fv,,z,,w,)/Ly a -� Mayor Darcy McNaboe / AT# A& 9 0 E PUBLIC HEARINGS - NONE 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 City of Grand Terrace , -- § - Page 2 r � � I Agenda Grand Terrace City Council and Successor Agency May 30, 2017 a) Public Hearing opened b) Written communication c) City Council questions/staff comments d) Applicant's comments (applicant not limited to 3 minutes) e) Oral - favor and opposition (speakers limited to 3 minutes) f) Applicant's rebuttal (applicant not limited to 3 minutes) g) Public Hearing closed h) City Council deliberation. F 5� UNFINISHED BUSINESS - NONE - NEW BUSINESS 6,10 - 1 Child Care Service, Program, s 4 } RECOMMENDATION 1 Approve the termination of City provided Child Care Services and the elimination of the Child Care Department effective at the end of the work day on June 30, 2017, 2 Authorize the Lay-off of the child care personnel, also effective at the end of the work day on June 30, 2017 and instruct the City Manager to issue lay-off notices DEPARTMENT CITY MANAGER Staff Presentation 1-;I-} ,q 29 2 F t: ,At Zi Council Questions J30A)-L Speakers a °� Motion 1L6f61L51 s,, a Second., �"! , J,b!5_0 � Vote Ayes. # - Vote : _ Nayes. # ` 2 Child Care Services Lease Agreement with Family Services Association RECOMMENDATION Approve a Lease Agreement with Family Service Association in substantially similar form to the attached Lease Agreement DEPARTMENT CITY MANAGER Staff Presentation r r' City of Grand Terrace Page 3 it pvlk fe i Agenda Grand Terrace City Council and Successor Agency May 30, 2017 Council Questions Speakers Motion (e ) i L-50 A-) Second Vote Ayes # Vote Nayes # _ a 3 Introduction of Proposed Budget for Fiscal Year 2017-18 RECOMMENDATION 1 Receive and file the Proposed Budget for Fiscal Year 2017-18, and 2 Begin budget deliberations for the Proposed Budget for Fiscal year 2017-18 DEPARTMENT CITY MANAGER Z, ;&,&- aa es //z~`lam G7 /� ��b&�-z� �,,D,06 Na'D /1 ,V- -- 00 Staff Presentation 0, Council Questions 1� , — Speakers Motion 6 Second Vote Ayes # Vote Nayes # om S s 6 s H CITY MANAGER COMMUNICATIONS - - - -- I CLOSED SESSION - NONE - �� 'w J ADJOURN PM �'`�✓ &V , The Next Regular City Council Meeting will be held on Tuesday, June 13, 2017 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. t f .F f 1r, s ,J a ,ems o�?s City of Grand Terrace Page 4 CITY OF GRAND TERRACE AGENDA & STAFF REPORTS FOR CITY COUNCIL AND CITY COUNCIL AS SUCCESSOR AGENCY Tuesday, May 30, 2017 6 00 p.m Special Meeting COUNCIL CHAMBERS _ 'GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 1 Darcy McNaboe, Mayor Sylvia Robles, Mayor Pro Tern Doug Wilson, Council Member Bill Hussey, Council Member Brian Reinarz, Council Member 1 I ( 1 G Harold Duffey, City Manager `Richard L Adams, City Attorney Debra Thomas; City Clerk Linda Phillips, Child Care Director l Alan French, Public Works Director Sandra Molina, Planning & Development Servics Director Cynthia A Fortune, Assistant City Manager r The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6 00 p m CITY OF GRAND TERRACE A CITY COUNCIL AND CITY COUNCIL AS SUCCESSOR AGENCY a AGENDA • MAY 30, 2017 Council Chambers Special 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 cityof4randterrace org <http //www cityof4randterrace 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 1 Attendee Name Mayor Darcy McNaboe I Present_ ❑-�� Absent ; Late Arrived Y❑� ❑ Mayor Pro Tern Sylvia Robles ❑ l ❑ i ❑ Council Member Doug Wilson ❑ ❑ p Council Member Bill Hussey ❑ ❑ ❑ Council Member Brian Reinarz ❑ ❑ , ❑ A SPECIAL PRESENTATIONS - NONE 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 City of Grand Terrace Page 1 Agenda Grand Terrace City Council and Successor Agency May 30, 2017 F UNFINISHED BUSINESS - NONE G NEW BUSINESS 1 Child Care Service Program RECOMMENDATION 1 Approve the termination of City provided Child Care Services and the elimination of the Child Care Department effective at the end of the work day on June 30, 2017, 2 Authorize the Lay-off of the child care personnel, also effective at the end of the work day on June 30, 2017 and instruct the City Manager to issue lay-off notices DEPARTMENT CITY MANAGER 2 Child Care Services Lease Agreement with Family Services Association RECOMMENDATION Approve a Lease Agreement with Family Service Association in substantially similar form to the attached Lease Agreement DEPARTMENT CITY MANAGE 3 Introduction of Proposed Budget for Fiscal Year 2017-18 RECOMMENDATION 1 Receive and file the Proposed Budget for Fiscal Year 2017-18, and 2 Begin budget deliberations for the Proposed Budget for Fiscal year 2017-18 DEPARTMENT CITY MANAGER H CITY MANAGER COMMUNICATIONS CLOSED SESSION - NONE J ADJOURN The Next Regular City Council Meeting will be held on Tuesday, June 13, 2017 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 3 tG 1 AGENDA REPORT MEETING DATE May 30, 2017 Council Item TITLE Child Care Service Program PRESENTED BY G Harold Duffey, City Manager RECOMMENDATION 1 Approve the termination of City provided Child Care Services and the elimination of the Child Care Department effective at the end of the work day on June 30, 2017, 2 Authorize the Lay-off of the child care personnel, also effective at the end of the work day on June 30, 2017 and instruct the City Manager to issue lay-off notices 2030 VISION STATEMENT This staff report supports City Council Goal #1 "Ensure our Fiscal Viability" through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations BACKGROUND On July 1, 2012, Child Care Services was moved from the General Fund into its own Special Revenue Fund as requested and approved by City Council It was intended that the Child Care Services Fund be self-supporting, including charging the fund a cost allocation for general government services provided by the City This includes payroll, invoice and purchasing processing, human resources support, maintenance of facilities, and other administrative tasks In order for the Child Care program to be self-supporting, rate increases were requested and approved by Council during the following fiscal years • FY2012-13 (13 5%), • FY2013-14 (2%), • FY2014-15 (6%) • FY2015-16 (2 5%), and • FY2016-17 (21 4%) The Child Care Services rates were raised requirements, allow the Child care progi competitive with current market rates to cover the cost increases, minimum wage am to be self-supporting and to be more DISCUSSION The rate increases that were implemented through the last few years were unable to keep up with increased health insurance rates, increased retirement contributions rates and necessary maintenance improvements needed for the Child Care facility which Packet Pg 4 MEETING DATE TITLE PRESENTED BY AGENDA REPORT May 30, 2017 Council Item Child Care Services Lease Agreement with Family Services Association G Duffey, City Manager RECOMMENDATION Approve a Lease Agreement with Family Service Association in substantially similar form to the attached Lease Agreement 2030 VISION STATEMENT This staff report supports City Council Goal #1 "Ensure our Fiscal Viability" through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations BACKGROUND This agenda item is brought in connection with the adjacent agenda item regarding ending the City's Child Care Program Upon the ending of the child care program, the City will be left with a potential asset in the form of a vacant building In order to both capitalize on this asset and to minimize the reduction in service to enrollees in the child care program and City staff, the attached Lease Agreement is being presented for your adoption Family Service Association, a California Domestic Nonprofit corporation has agreed to lease the child care property committing to the operation of a private child care program at the property Family Service Association will lease the property for a term of three years paying base rent in Year 1 in the amount of $10,000 00, Year 2 in the amount of $11,000 00, and Year 3 in the amount of $12,000 00 In addition, they will pay additional rent in an amount equaling 50% of their net revenue over $150,000 00 up to a maximum additional rent payment of $150,000 00 to City, exclusive of the base rent However, Family Service Association is also being granted an Option to Purchase the Property for $1,000,000 00, which may be exercised within Year 1 Fifty Percent of any rent actually paid to the City within that first year will be credited toward the Purchase price Family Service Association agrees to be responsible for maintenance and repair of the Property in good condition However, during the first year, Family Service Association shall not pay more than $750 for any individual repair or cumulative cost of $5,000 00 for repair This cap applies to repair only and not general maintenance or janitorial services Any reasonably required repair in the first year which exceeds the cap will be paid by City After the first year, The City will not be obligated for any repair Packet Psi- 6 G2a FAMILY SERVICE ASSOCIATION/CITY OF GRAND TERRACE, CA LEASE AGREEMENT THIS LEASE AGREEMENT is by and between the City of Grand Terrace, a municipal corporation ("Lessor'T'City"), and Family Service Association, a California domestic non-profit corporation ("Lessee") WITNESSETH A Lessor is the owner of a real property identified as 22400 Barton Road, Grand Terrace, California including all structures and appurtenances thereon which real property is more specifically described in Exhibit A ("Property") B Lessor and Lessee desire to enter into this Lease Agreement for the lease of the Property for the purpose of Lessee operating a child care program thereon for a term of three (3) years with an option to purchase the Property NOW, THEREFORE, the parties hereby agree as follows SECTION 1 TERM AND TERMINATION 1 1 Term The term of the Lease Agreement shall be three years commencing on July 1, 2017 ("Commencement Date") and terminating on June 30, 2020 (the "Term"), unless sooner terminated as provided herein 12 Termination Commencing June 30, 2018, this lease may be terminated by either party upon on less than 90 days written notice prior to the beginning of the next semester SECTION 2 CONSIDERATION 21 Base Rent Commencing on the Commencement Date, Lessee shall pay Base Rent in consideration of the lease of said Property and Equipment to Lessor as follows Year 1 (July 1, 2017 — June 30, 2018) $10,000 00 Year 2 (July 1, 2018 — June 30, 2019) $11,000 00 Year 3 (July 1, 2019 — June 30, 2020) $12,000 00 22 Additional Rent In addition, Lessee agrees to pay to Lessor Additional Rent equaling 50% of Lessee's Net Revenue exceeding $150,000 00 up to a maximum additional rent amount of $150,000 00 For example, if Lessee receives Net Revenue of $170,000 Lessee shall pay additional rent to City of $10,000 ($170,000 00 - $150,000 00=$20,000 00 x 50 = $10,000 00) For purposes of calculating Additional Rent, Net Revenue shall not be less than 15% of Lessee's Gross revenue In addition, Additional Rent shall not exceed $150,000 00 exclusive of base rent 2 3 Payment Schedule Base Rent shall be due and payable in equal monthly installments to Lessor commencing on the Commencement date ("Rent") Subsequent Base Rent shall be due on the first (l') day of each month during the Term, and Lessee shall have the right, but not the obligation, to prepay Rent in advance Additional Rent shall be due and a Child Care Facility Page 11 Lease Agreement Packet Pg `8 G2a SECTION 4 USE OF PROPERTY AND EQUIPMENT 41 Use Lessee shall use the Property and Equipment for the sole purpose of operating a child care facility on said Property in conformity with all applicable federal, state, and local laws and regulations Notwithstanding the foregoing, Lessee may engage in any use compatible with or in support of the operation of a child care facility If Lessee would like to use the Property for anything other than what is set forth in this Agreement, Lessee shall obtain prior written consent from Lessor , 42 Compliance with Laws Lessee, in its use of the Property, shall comply at all times with all applicable federal, state and local governmental laws and regulations applicable to the Property and operation of a child care facility, including but not limited to acquisition of all licensing, certifications, and permits required under federal, state, or local law or regulation for operation of a child care facility Lessor agrees to cooperate and make all commercially reasonable efforts to transfer to Lessee all state licenses carried by Lessor for the operation of a child care facility 43 No Waste or Nuisance Lessee shall not use the Property in a manner that will cause the cancellation of any insurance policy covering the Property required by this Agreement to be maintained by Lessee unless Lessee has first replaced such policy at Lessee's cost In this regard, Lessee shall, at its sole cost and expense, comply with all commercially reasonable requirements pertaining to the Property or any reasonable insurance organization or company necessary for the maintenance of insurance on and for said Property Lessee shall not commit or permit any waste in or on the Property or any nuisance or any other act or thing which may disturb the quiet enjoyment of adjoining landowners or tenants 44 Lessee Responsible for Damage Lessee shall remain solely and exclusively c responsible and liable for any and all damage caused to the Property by Lessee's use of said v Property M N 45 Noncompliance is a Material Breach Noncompliance with this section shall constitute a material breach of this Agreement c SECTION 5 MAINTENANCE. ALTERATIONS. SURRENDER 5 1 Maintenance Except as set forth below, Lessee shall, throughout the Term, at its sole cost and expense, keep and maintain the Property and Equipment in neat order, good condition and repair, and shall restore and, subject to Section 26, to the extent of insurance proceeds received from policies required to be maintained by Lessee hereunder, rehabilitate any improvements which may be destroyed or damaged by any cause whatsoever Lessor shall not be obligated to make any repairs, replacements or renewals of any kind, nature or description whatsoever to the Property, except as set forth in this Agreement Without limiting the foregoing, Lessee shall be solely responsible for (a) maintenance of the roof, interior and exterior walls, the exterior recreational and play areas, all heating and air conditioning equipment, kitchen facilities, and plumbing, (b) repair, maintenance, and upkeep of the interior of the Property, including but not limited to paint, floor coverings, partitions, light fixtures, plumbing fixtures, electrical systems, window glass, and all other interior portions of the Property, (c) maintenance and upkeep of the exterior of the Property, including parking lot maintenance and repair, and maintenance and upkeep of landscape and hardscape on the Property exterior, and (d) using commercially reasonable maintenance and w Q Child Care Facility Page I 1 Lease Agreement Packet Pg 10 G2a furmshed to the Property or Lessee's business to be transferred into Lessee's name for Lessee's use during the Term and shall be paid for by the Lessee SECTION 7 LESSEE'S SIGNS No- sign or other permanent advertisement shall be displayed on the outside of the Property without the prior written consent of Lessor, which consent shall not be unreasonably withheld Temporary banners and similar devices shall be permitted so long as they are consistent with Lessee's permitted use hereunder and with all applicable zoning and land use requirements In addition, a permanent sign or advertisement shall be reasonable if (a) it is consistent with Lessee's permitted use of the Property, and (b) is in compliance with applicable laws and regulations Lessor consents to all existing signs or advertisements displayed on the exterior of the Property on the commencement of the Term SECTION 8 LIENS Lessee shall keep the fee estate of said Property free and clear from all mechanics and materialmen liens and other liens for work or labor done, services performed, materials, appliances used, or furnished or to be used in or about the Property for or in connection with any operation of Lessee, for any repairs or improvements which Lessee may make or permit to cause to be made, or any work or construction by, for or permitted by Lessee on or about said Property SECTION 9 INDEMNIFICATION Lessee agrees to defend, indemnify, hold free and harmless Lessor, its elected v officials, officers, agents, volunteers and employees ("Indemnitees") at Lessee's sole expense from and against any and all claims, demands, suits, actions or proceedings of any v kind or nature including, but not by way of limitation, all civil claims, workers' compensation claims, damages to property, or injuries to or death of any person or persons, rn and all other claims resulting from or arising out of the use or occupancy of the Property by or the acts, errors or omissions of Lessee, its officers, agents, volunteers, employees, occupants, visitors or other users and/or authorized subcontractors, whether intentional or o negligent, except to the extent such claim, demand, suit, action or proceeding, civil claim, worker's compensation claim, damage to property, injury to or death of any person arises from the sole active negligence or willful misconduct of Indemnitees The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by Lessee, its officers, agents, volunteers, employees, occupants, visitors or other users and/or authorized subcontractors, but shall be required whenever any claim, demand, suit, action or proceeding, civil claim, worker's compensation claim, damage to property, injury to or death of any person asserts liability against Indemnitees based upon Lessee, its officers, agents, volunteers, employees, occupants, visitors or other users and/or authorized subcontractors use or occupancy of the Property or the acts, errors or omissions of Lessee, its officers, agents, volunteers, employees, occupants, visitors or other users and/or authorized subcontractors SECTION 10 ASSIGNMENT AND SUBLETTING w Q Child Care Facility Page 11 Lease Agreement `Packet Pg 12 G2a The effective date of any notice or written communications sent by one party to the other shall be the date received if by personal service, the date of the overnight delivery company's confirmation of delivery if sent by overnight delivery, or three (3) business days after deposit in the US Mail if sent by mail (as reflected by official US postmark) Either party may change its address by giving notice in writing to the other party SECTION 14 BANKRUPTCY A The Lessor and the Lessee hereby expressly agree and acknowledge that it is the intention of both parties that in the event that during the term of this Agreement if Lessee shall become a debtor in any voluntary or involuntary bankruptcy proceeding (a "Proceeding") under the United States Bankruptcy Code, 11 U S C 101, et seq (the "Code"), this Agreement is and shall be treated for all purposes and considered for all intents as an unexpired lease of nonresidential real property for purposes of Section 365 of the Code, 11 U S C 365 (as may be amended), and, accordingly, shall be subject to the provisions of subsections (d)(3) and (d)(4) of said Section 365 (as may be amended) B Any person or entity to which this Agreement is assigned pursuant to the cn provisions of the Bankruptcy Code, 11 USC Sections 101, et seq , shall be deemed without further act to have assumed all of the obligations of Lessee arising under this Agreement both v before and after the date of such assignment Any such assignee upon demand shall execute and deliver to Lessor an instrument confirming such assumption Any monies or other v considerations payable or otherwise to be delivered in connection with such assignment shall be paid to Lessor, shall be the exclusive property of Lessor, and shall not constitute property of the N Lessee or of the estate of Lessee within the meaning of the Bankruptcy Code Any monies or other considerations constituting Lessor's property under the preceding sentence not paid or = delivered to Lessor shall be held in trust for the benefit of Lessor and be promptly paid to Lessor y SECTION 15 ABANDONMENT BY LESSEE If Lessee shall fail to use the Property, which is fit for occupancy, for a period of ninety (90) consecutive days, the Property shall be considered abandoned and the Term terminated SECTION 16 WAIVER The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative v of the party against whom enforcement of a waiver is sought The waiver of any right or :2 remedy in respect to any occurrence or event shall not be deemed a waiver of any right or v remedy in respect to any other occurrence or event, nor shall any waiver constitute a = continuing waiver t a Child Care Facility Page 11 Lease Agreement Packet Pg 14 G2a 176 Lessee will provide notice to Lessor of cancellation, suspension, or reduction in coverage immediately upon receipt of notice of same by Lessee, but in no event shall Lessee notify Lessor later than thirty (30) days following Lessee's receipt of said notice SECTION 18 SUBSTITUTE PERFORMANCE If Lessee fails to perform any material obligation of Lessee under this Agreement within thirty (30) days after written notice from Lessor describing the performance in reasonable detail, which notice shall not be sent until after the due date for such performance, then Lessor shall have the right to perform the obligation at the cost of Lessee, and Lessee shall pay Lessor the reasonable cost of such performance within thirty (30) days after Lessee's receipt of an invoice for the same and reasonable supporting documentation SECTION 19 ATTORNEYS' FEES In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses including reasonable attorneys' fees incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof SECTION 20 REPRESENTATIVES Lessor's City Manager or his/her designee shall be the representative of Lessor for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of Lessor called for by this Agreement The current City Manager for Lessor on commencement of the Term is G Harold Duffey The of Lessee or his/her designee shall be the representative of Lessee for purposes of this Agreement, and of Lessee is the on commencement of the Term 77 Either party to this Agreement shall have the right to change such party's representative at any time by written notice to the other party SECTION 21 HAZARDOUS MATERIALS As used herein the term "Hazardous Material" means any hazardous or toxic substance, material or waste which is or shall become regulated by any governmental entity, including without limitation, City acting in its governmental capacity, the State of California or the United States Government 21 1 Lessee shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Property except as specifically authorized by Lessor in writing Any such authorization by Lessor shall not alter or reduce Lessee's obligations under this section, including but not limited to its duty to indemnify and defend Lessor for any contaminations which may occur as a result of Lessee's use of the authorized material Child Care Facility Page 11 Lease Agreement Packet Pg 16 G2a 243 Non -Disturbance With respect to all Security Devices entered into by Lessor (whether existing prior to the commencement of the Term or thereafter), Lessee's subordination of this Agreement shall be subject to receiving a non -disturbance agreement, in form and content reasonably acceptable to Lessee, providing that so long as Lessee performs its obligations under this Agreement, Lessee's quiet use, enjoyment and possession of the Property shall not be disturbed by any holder of a Security Device Concurrently with execution and delivery of this Agreement, Lessor shall deliver to Lessee a non -disturbance agreement for each Security Device (if any exists) relating to the Property that is in existence as of the commencement of the Term 244 Self -Executing Subject to Lessee's receipt of the non -disturbance agreement(s) specified in Section 24 3, the agreements contained in this Section 24 shall be effective without the execution of any further documents, provided however, that upon written request from Lessor or a Lessor lender in connection with a sale, financing or refinancing of the Property, Lessee and Lessor shall execute such further writings as may be reasonable required to separately document any such subordination, attornment and/or non -disturbance agreement as is provided for herein SECTION 25 NO REPRESENTATION, WARRANTY, OR GUARANTEE Lessee acknowledges and agrees the Lessor is not malting any representation, warranty, or guarantee in this Agreement regarding any certificate, permit, or other approval that may be required by any Federal, State, or local authority, including by Lessor in its capacity as municipal land use authority, which may be required of Lessee By way of explanation, this Section is not intended to prohibit or restrict Lessee's use of the Property during the term of this Agreement, but IS intended to establish that the Lessor is not making any promises in regards to approval of any future proposed uses of the Property or in regards to any governmental approval Lessee may require in the future SECTION 26 DAMAGE AND DESTRUCTION N In the event of any damage or destruction of the Property or the improvements to r_ the Property 1. 26 1 If caused by Lessor or its representatives or agents, then Lessor shall, at Lessor's cost, promptly repair and restore the Property to the condition in effect immediately prior to the casualty 262 If not caused by Lessor or its representatives or agents, then (1) within one r hundred and twenty days (120) days after the casualty, Lessee shall notify Lessor in E writing of Lessee's election to either repair and restore the Property, or (11) terminate Q this Agreement If Lessee elects to terminate the Agreement, then (a) the Agreement N shall terminate on the date set forth in notice from Lessee, which date shall be no less J than 90 days after the date of the casualty, and (b) any available insurance proceeds from insurance required to be carried by Lessee or Lessor pursuant to this Agreement shall be v paid to Lessor If Lessee elects to repair and restore the Property, then (1) any available insurance proceeds from insurance required to be carried by Lessee or Lessor pursuant to v this Agreement shall be applied to such repair and restoration efforts, (2) Lessee shall w commence such repair and restoration efforts within one hundred and eighty (180) days d after the date of the casualty and shall use commercially reasonable efforts to complete s 0 r r Q Child Care Facility Page I 1 Lease Agreement Packet Pg 18 G2a Lessor cannot agree upon an appraiser, then Lessee and Lessor shall each select an appraiser, the two of whom shall mutually agree upon a third appraiser to perform the appraisal The appraiser shall establish the valuation for the Lessee and Lessor by considering the highest and best use of the Property based upon its condition at the time of exercise of the Option and subject to any and all encumbrances including rights to access and existing or likely future environmental conditions 29 4 During the term of the Option, prior to Lessee's exercise of said Option and continuing through actual acquisition of the Property, Lessee shall remain responsible to keep and maintain the Property in good repair 295 In the event of transfer of the Property, each side will bear its own costs for any attorney, staff, or consultant time involved in the transaction, except that Lessee shall be responsible to pay for any commercial broker The Lessor shall owe no commission on the sale of the Property All other closing costs shall be shared equally between Lessee and Lessor 296 Upon Lessee's exercise of it's Option, the parties shall, in good faith, negotiate all other terms of the purchase and sale IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed by and through their respective authorized officers, as of the date first above written FAMILY SERVICE ASSOCIATION, a California Domestic Nonprofit Corporation By Its CITY OF GRAND TERRACE, A Municipal Corporation By Darcy McNaboe Mayor APPROVED AS TO FORM Child Care Facility Page I 1 Lease Agreement Packet Pg 20 b CD CD Attachment Child Care Lease Agrmt revied rla [Revision 1] (2199 Child Care Services Lease Agreement with Family Services Association) 1< Attachment Child Care Lease Agrmt revied rla [Revision 1] (2199 Child Care Services Lease Agreement with Family Services Association) °•;; :.�*AGENDA REPORT MEETING DATE May 30, 2017 Council & Successor Agency Item TITLE Introduction of Proposed Budget for Fiscal Year 2017-18 PRESENTED BY Cynthia Fortune, Assistant City Manager RECOMMENDATION 1 Receive and file the Proposed Budget for Fiscal Year 2017-18, and 2 Begin budget deliberations for the Proposed Budget for Fiscal year 2017-18 2030 VISION STATEMENT This staff report supports City Council Goal #1 "Ensure our Fiscal Viability" through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations BACKGROUND The Proposed Budget for Fiscal Year (FY) 2017-18 is submitted for City Council's review and deliberation prior to adoption The Proposed Budget shows the projected revenues and expenditures for the upcoming fiscal year Once adopted, the FY 2017- 18 Budget will serve as the City's financial plan for the upcoming fiscal year and as the basis for budgetary control All City funds are included in the Proposed Budget The focus is on the review and approval of the FY2017-18 budget requests DISCUSSION The total Proposed Budget for FY2017-18 is $14,706,333 The City's General Fund proposed balanced budget of $5,060,104, compared to the current budget of $4,785,106 (which is less $1,040,090 in one-time programmed expenditures — payment of the City Hall loan), is 5 75% more than the FY2016-17 budget The General Fund Proposed Balanced Budget presented for City Council's review and consideration, • Supports the City's mission, vision, core values and goals by preserving and protecting the community and its exceptional quality of life, • Increases the current level of service to the residents of Grand Terrace, with focused efforts on public safety and economic development, • Does not use fund balance to fund operations in FY 2017-18, and • Recognizes the continuingly strong economic recovery in the City and strategically invests in the City's economic future The City hosted a Budget in the Park meeting at the Grand Terrace Fitness Park This meeting was intended to provide information to residents regarding the City's services, 1 1 Packet Pg 25 Fund Fund Title ACTIVE TRANSPORTATION PRGRM FUND Estimated Revenues, FY2017-18 280,000 Proposed Expenditures, Proposed Surplus or Proposed Use of Fund Balance_ 0 Fixed Asset FY2.017_-18 280,000 73 -Replacements----- 0 74 HIGHWAY SAFETY IMPROV PROGRAM 420,000 420,000 i 0 0 75 EMPG - EMER MGMT PREP GRANT ( 0 0 0 0 SUCCESSOR AGENCY 31 S/A RDA OBLIGATION RETIREMENT FUND 2,216,478 2,284,067 0 (67,589) 32 S/A CAPITAL PROJECTS FUND 257,707 257,699 0 8 33 S/A DEBT SERVICE FUND 2,026,360 2,026,360 0 0 ! ---! 36 2011 TABS A & B BOND G PROCEEDS 35,000 i 289,015 0 254,015 37 S/A CRA PROJECTS TRUST 01 0 1 0 0 ' ! 1 CAPITAL PROJECT FUNDS 46 j CAPITAL IMPROVEMENTS - STREETS j 1,000,000 i 1,000,000 0 0 ' 47 _ _ CAP PRJ BARTON/COLTON ---r BRIDGE -----� j �_ 0 I �— 0 0 � 48 49 I CAPITAL PROJECTS FUND CAPITAL PROJECTS FUND- i PARKS _0 I _00 0 ; 360,000 i 360,000 ( 0 0 1 50 CAPITAL PROJECT BOND PROCEEDS 239,015 239,015 i 0 0 I 52 j HOUSING AUTHORITY 50,000 8,200 i — 0 41,800 EQUIPMENT REPLACEMENT 70 !RESERVE FUND 0 _260,000___ _ 260 000 Proposed 2017-18 Budget General Fund Revenues General Fund revenues include the following considerations • General Fund property taxes are projected to increase by 4 2%, (it should be noted that since all of Grand Terrace is part of the former redevelopment project area, all increased tax revenue goes to the Successor Agency), • Receipt of on -going funds of $300,000 annually from the waste water agreement between Grand Terrace and Colton, • Sales Taxes as projected by the City's sales tax consultant, HdL, (the economic Packet Pg 27 „ G3 Funding Effective Start Date Planning & I Development Reclassification of an Office Services — Code Specialist from part-time to Full time Enforcement General Fund 07-01-2017 Funds w1th Requests for Use of Fund Balance The table below lists all the funds whose proposed expenditure appropriations are requesting the use of fund balance These are mainly due to projects previously approved by City Council and are continuing into the next fiscal year All funds listed below have sufficient fund balance to cover all requested expenditure appropriations 2017-18 2017-18 Proposed I Surplus FUND Proposed Proposed or Use of Fund Balance Revenue Expenditure 11 Street Fund (Development Impact Fees) 91,900 1,000,000 (908,100) To implement street improvement projects as detailed in the City's 5-year Capital Improvement Program 13 Park Fund (Development Impact Fees) 52,000 310,000 (258,000) To implement the construction of the Dog Park 19 Facilities Fund (Development Impact Fees) 15,150 50,000 (34,850) To implement the upgrade of existing facilities 16 Traffic Safety Fund 10,175 20,000 (Special Revenue Fund) (9,825) To provide use for additional public safety devices and equipment 20 Measure "I” Fund (Special Revenue Fund) 193,500 333,000 (139,500) To implement street projects as detailed in the City's Capital Projects Need Analysis (CPNA) and approved by San Bernardino Associated Governments (SanBAG) 64 Public Safety Fund 0 50000 (Special Revenue Fund) , (50,000) To provide use for additional public safety services Packet Pg 29 FISCAL IMPACT Fiscal impacts of the FY2017-18 Proposed Budget are identified in the FY2017-18 Proposed Budget Book APPROVALS Cynthia A Fortune Completed Finance Completed City Attorney Completed City Manager Completed City Council Pending 05/28/2017 10 18 PM 05/28/2017 10 18 PM 05/28/2017 10 26 PM 05/28/2017 10 29 PM 05/30/2017 12 00 AM Packet Pg 31 CITY OF GRAND, TERRACE 2030 VISION and 2014-2020 STRATEGIC PLAN Our Mission To preserve and protect our community and its -exceptional qual►ty of life through thoughtful planning, within' the constraints of fiscally responsible,government4 Our Vision Grand Terrace is, an exceptionally safe and well managed City, known for its natural beauty, and recreational and o opportunities, a vibrant bverse local economy, a place where residents enjoy an outstanding quality of life that fosters pride and an engaged community, encouraging families t® come and remain for generations ,Our Core Values ,__Open and Inclusive -Government r t Honesty and Integrity " Mutual Respect t 2 Ensure Our Fiscal Viability 't E 4 'Commit to a Balanced Budget- } `t ildentify Additional Revenue Sources-- Exceptio'nal,Customer Service Innovation and Creativity -Positive and Productive Work Environment � r Review Expenditures and Seek Savings Explore Creative Means -to Provide Services tj , t' t r E Ensure Appropriate Cost Recovery for Services l i l ,f 3 J "* - - - -t -4 l -•,, __Iw t r11 z , '`- rt-�._-..J t Maintain Public Safety Ensure Staff Levels for Police Services Remain Adequate for Our Community Invest in'Critical lmprovements to Infrastructure 5 4 - 3 Promote Economic Development - \ A Develop Proactive Economic Development Plan to Attract New Businesses; Invest in Infrastructure Needed, to Support Business Attraction and Retention Prepare for Development by Updating Zoning and Development.Codes including the Sign Code 4 Develop and Implement Successful Partnerships Work Collaboratively with Community Groups, Private and Public Sector Agencies to Facilitate' the Delivery of Services Benefitting Youth, Seniors and Our Community Work with Local, Regional and State Agencies to Secure Funding for Programs and Projects 5 Engage in Proactive Communication Develop and Implement a Cost Effective Proactive Communication Program Utilize Technology and Web -Based Tools to Disseminate Information Engage the Community by Participation 5/30/2017 0 pomp W-M-M—MM Conclusion of City Provided Child Care Service st A New Beginning of Child Care Services Child Care's Financial Performance Healthy u t 2 Sustainable � Y I Vulnerable J d C a a j 7 s Rev $1 11M-- Unsusta,tna le s Ex $1 OSM , Rev $109Me "$1�2M a d, 07108 08109 09/10 10/11 11112 12/13 13/14 14/15 15116 16/17 Healthy Revenues exceed expenditures continue to show growth year over year and the City maintains a 2 month reserves rainy day fund Sustainable Revenues exceeds expenditures (2 month reserves —rainy day fund) Vulnerable Revenues exceed expenditures (less than the 2 month reserve —rainy day fund) Unsustamablellnsolvent Revenues less than expenditures 7 I 5/30/2017 History of Child Care Service • Action tonight is an independent Action and represents the Council's decision to no longer subsidize Child Care Program 01 5/30/2017 0 A1�7= Lease Agreement • Employees — Shall be offered employment at their current salary `f schedule — Must retain at least 90 i days — Teachers create stability 2 4 THE BLUE MOUNTAIN CITY T-% -r '" " '," R 4 il 1-1 ACALIFORMA to o s e u et ay 30, 2017 0 FY201 7=1 8 Proposed Budget • Goal For 2017/18 Budget • 1) ensure its fiscal viability • 2) maintain public safety • 3) promote economic development • 4) develop and implement successful partnerships • 5) engage in proactive communication Healthy Sustainable Vulnerable General Fund's Long -Term Financi MMM-m �. � q al Performance I I I a {}. • I { • 4, I # { +Ir }* }}**} i.: }}}}} • i • I I I 1 1 07/08 08/09 09/10 10/11 11 /12 12/13 13/14 14/15 15/16 16/17 Healthy Revenues exceed expenditures, continue to show growth, year over year, and the City maintains a 2-month reserves -rainy day fund Sustainable Revenues exceeds expenditures (2-month reserves —rainy day fund) Vulnerable Revenues exceed expenditures (less than the 2-month reserve —rainy day fund) Unsustainable/Insolvent Revenues less than expenditures Su ar of T > Y 1 1 1 1t f ry ,; 11 I tom_ x " v '%,— V r7 i W f "tw k- cr.+Ya7r..r1 9 C� a — ' W s � an Y t r +fir hay{,�IYI{f +^•rl�elt a —� tf • Y a I4 e+Y '!'4'%.9(Mi.YivY'}� o md4 M Ide Expendi rend The increase in FY2017-18 is mainly due too. Street Improvements (DIF & Measure 1) $1 Y3009000 Dog Park 250,000 CJUSD Swimming Pool 1507000 Use of Bond Proceeds 289,000 Equipment Replacement Requests 2607000 Highway Safety Impr. Pgrm (HSIP) Grant 495,000 Active Transportation Prgm (ATP) Grant 280,000 Citywide Expenditure Trend FY2014-15 FY2015-16 FY2016-17 FY2017-18 $1193339735 $1094609306 $10,525,666 $1499669333 The increase in FY2017-18 is mainly due to: Street Improvements (DIF & Measure 1) $13300,000 Dog Park 250,000 CJUSD Swimming Pool 1501000 Use of Bond Proceeds 2897000 Equipment Replacement Requests 2601000 Highway Safety Impr. Pgrm (HSIP) Grant 4957000 Active Transportation Prgm (ATP) Grant 2803000 THE BLUE MOUNTAIN CITY GRAND TERRAC[� CALIFORNIA<% EST 1978 Questions? M