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11/13/2012CITY OF GRAND TERRACE CITY COUNCIL AGENDA • NOVEMBER 13, 2012 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center • 22795 Barton Road City of Grand Terrace Page 1 Updated 10/25/2012 1:16 PM The City of Grand Terrace complies with the Americans with Disabilities Act of 1990. If you require special assistance to participate in this meeting, please call the City Clerk’s office at (909) 824-6621 at least 48 hours prior to the meeting. If you desire to address the City Council during the meeting, please complete a request to speak form available at the entrance and present it to the City Clerk. Speakers will be called upon by the Mayor at the appropriate time. Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’s office at city hall located at 22795 Barton Road during normal business hours. In addition, such documents will be posted on the City’s website at www.cityofgrandterrace.org CALL TO ORDER Convene City Council and City Council as the Successor Agency to the Community Redevelopment Agency Invocation Pledge of Allegiance Roll Call Attendee Name Present Absent Late Arrived Mayor Walt Stanckiewitz ¨¨¨ Mayor Pro Tem Lee Ann Garcia ¨¨¨ Councilwoman Darcy McNaboe ¨¨¨ Councilman Bernardo Sandoval ¨¨¨ Councilman Gene Hays ¨¨¨ 1.ITEMS TO DELETE 2.SPECIAL PRESENTATIONS A.Assemblyman Mike Morrell's Top Chamber Business Award Recipients for 2012 B.Certificate of Appreciation -Matthew Addington C.Foundation of Grand Terrace Update -Ryan Stephens Agenda Grand Terrace City Council November 13, 2012 City of Grand Terrace Page 2 Updated 10/25/2012 1:16 PM 3.CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent Calendar for discussion. A.Waive Full Reading of Full Ordinances on Agenda B.Approval of Minutes –Regular Meeting –10/23/2012 C.Adopt Resolutions Providing Bank and Investment Account Signature Authority D.Accept Historical and Cultural Activities Committee Meeting Minutes of September 4, 2012 E.Approve a Professional Services Agreement with Willdan Financial Services To Provide Interim Finance Director Services F.Approval of Check Register No. 11-13-2012 PLANNING COMMISSION INTERVIEWS 4.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. 5.COUNCIL REPORTS 6.PUBLIC HEARINGS 7.UNFINISHED BUSINESS A.Contract Amendment with California Public Employees' Retirement System (CalPERS) to Establish Second Tier Retirement Benefit for Future Employees 8.NEW BUSINESS A.Memorandum of Understanding Between San Bernardino Associated Governments and City of Grand Terrace for Participation in the Property Assessed Clean Energy (PACE) Program B.Department of Finance Determination on Successor Agency's Recognized Obligation Payment Schedule for Period of January 1, 2013 through June 30, 2013 C.Repeal Municipal Code Chapter 3.24 and Adopt Proposed New Chapter 3.24 as the City's Purchasing System 9.CLOSED SESSION A.Employee Negotiations -Labor Negotiations Pursuant to Government Code 54957.6 -City Labor Negotiator -Betsy Adams, City Manager -Negotiated with -All Unrepresented Employees Agenda Grand Terrace City Council November 13, 2012 City of Grand Terrace Page 3 Updated 10/25/2012 1:16 PM B.Conference with Legal Counsel -Significant Exposure to Litigation Pursuant to Government Code 54956.9 (B) -One Potential Case ADJOURN The Next Regular City Council Meeting will be held on Tuesday, November 27, 2012, at 6:00 PM. 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 CITY COUNCIL MINUTES ● OCTOBER 23, 2012 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 Updated 11/8/2012 3:44 PM CALL TO ORDER Convene City Council and City Council as the Successor Agency to the Community Redevelopment Agency Invocation - Mayor Pro Tem Lee Ann Garcia Pledge of Allegiance - Captain Steve Dorsey Attendee Name Title Status Arrived Walt Stanckiewitz Mayor Present Lee Ann Garcia Mayor Pro Tem Present Darcy McNaboe Councilwoman Present Bernardo Sandoval Councilman Present Gene Hays Councilman Present Betsy Adams City Manager Present Bernie Simon Finance Director Present Richard Shields Community Development Director Present Tracey Martinez City Clerk Present Richard Adams City Attorney Present Steve Dorsey San Bernardino County Sheriff's Department Present Manny Mendoza San Bernardino County Sheriff's Department Present Ed Finneran San Bernardino County Sheriff's Department Present Rick McClintock San Bernardino County Fire Department Present 1.ITEMS TO DELETE 2.SPECIAL PRESENTATIONS A.Community Emergency Response Team (C.E.R.T.) Update - Tom Roberts Reported the following: The dust has begun to settle on the change in leadership and they are becoming a bit more organized. Training activities are taking shape. They had an excellent turnout for the fire suppression training in September and he would like to express the gratitude of the CERT members to Chief Chris Gordon and Paramedic Ben Hunt. Both were very helpful and thorough during the training exercise. They have a couple of training dates already in place, October 27, 2012, November 8, 2012 and December 8, 2012, which will be a refresher for the CERT Team. CERT records are being organized and copies are being readied for central filing in the EOC building. Equipment has been inventoried and upgrades and replacements are being researched. They are currently waiting on the City's Finance Department to complete a revamp of the purchasing procedures which they have been advised is in the works. 3.B Packet Pg. 4 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 2 3 , 2 0 1 2 9 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council October 23, 2012 City of Grand Terrace Page 2 Updated 11/8/2012 3:44 PM These past couple of months have been an exciting time as they have begun to reach out to the community starting with Azure Hills Church. Pastor Andy McRae has been a truly positive force in this effort and has offered them the use of the church facilities for their training exercises and events. The Grand Terrace CERT Program is on the move and working to create a more efficient team. Although they are still at 52 members they are looking at some ideas for implementing a recruiting plan that includes having the Team itself become more involved in the effort. With the initial 21 hour training being offered in Loma Linda on a quarterly basis, adding members is a slow process. They would like to meet with Council or staff to discuss some possible changes in the resolution and volunteerism guidelines. One of those guidelines being the age requirement as the CERT Program offers access to a Teen CERT Group that allows youth to become more involved in the CERT program. That program allows them to use the time involved toward their school community service credits. This could allow them to work with Grand Terrace High School to bring more youthful energy and ideas to the CERT Team. They understand that the next couple of months are chaotic for everyone so they are anticipating a slower pace until January when they can kick 2013 into high gear and implement some new ideas. He thanked James Mejia for his efforts on the website. He has done a wonderful job of designing a site that is efficient and accessible and looks great. Images, calendars and updated information grace will throughout the pages and enhance the professional look of Grand Terrace CERT. B.Grand Terrace Area Chamber of Commerce Business of the Month Sally McGuire, President, Grand Terrace Area Chamber of Commerce, announced that the business of the month for October is Blue Mountain Collision Center. She introduced the owner, Terry Lambert. They have been a long time Chamber member and they appreciate their support. 3.CONSENT CALENDAR RESULT:APPROVED [UNANIMOUS] MOVER:Darcy McNaboe, Councilwoman SECONDER:Bernardo Sandoval, Councilman AYES:Stanckiewitz, Garcia, McNaboe, Sandoval, Hays A.Waive Full Reading of Full Ordinances on Agenda C.Approval of Minutes – Special Meeting – 10/09/2012 E.Approval of Minutes – Special Meeting – 10/16/2012 F.Five Year Capital Project Needs Analysis for FY 2013-2014 through 2017-2018 H.Approval of Check Register No. 10-23-2012 ITEMS REMOVED FROM THE CONSENT CALENDAR B.Adopting New and Amended Conflict of Interest Codes Applicable to the City, the Successor Agency to the Former Grand Terrace Community Redevelopment Agency, the Grand Terrace Public Financing Authority and the Grand Terrace Housing Authority 3.B Packet Pg. 5 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 2 3 , 2 0 1 2 9 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council October 23, 2012 City of Grand Terrace Page 3 Updated 11/8/2012 3:44 PM RESULT:APPROVED [UNANIMOUS] MOVER:Bernardo Sandoval, Councilman SECONDER:Darcy McNaboe, Councilwoman AYES:Stanckiewitz, Garcia, McNaboe, Sandoval, Hays D.Approval of Minutes – Regular Meeting – 10/09/2012 RESULT:ACCEPTED [UNANIMOUS] MOVER:Darcy McNaboe, Councilwoman SECONDER:Lee Ann Garcia, Mayor Pro Tem AYES:Stanckiewitz, Garcia, McNaboe, Sandoval, Hays G.Adopt Resolution Authorizing Finance Records Destruction Request RESULT:APPROVED [UNANIMOUS] MOVER:Darcy McNaboe, Councilwoman SECONDER:Gene Hays, Councilman AYES:Stanckiewitz, Garcia, McNaboe, Sandoval, Hays 4.PUBLIC COMMENT Bob Lavin Invited the City Council to attend the Veteran's Day Ceremony at Pico Park on November 11, 2012, at 11:00 a.m. The entire community is invited and to attend the ceremony. Sally McGuire Reminded everyone that the Halloween festivities will be held on October 31, 2012, at Richard Rollins Park from 5:30 to 8:00 p.m. There will be 10 to 15 activity booths sponsored by the sports groups. There will be a trunk-n-treat, costume contest and a dog costume contest. The Woman's Club will be selling hot dogs along with two other food vendors. There will also being a pumpkin carving contest. The Walgreens grand opening will be held on Saturday, October 27, 2012. Joe Aboytes Indicated that he received a certified letter regarding scheduling a meeting regarding the Michigan Street project. The meeting is scheduled for the following day. The voice mail is full and it is extremely short notice. He feels that the proper notification has not been done. Rich Shields, Community Development Director Indicated that staff will work with all of the residents to ensure that they get a meeting scheduled. 5.COUNCIL REPORTS Councilmember Gene Hays Gave statistics on local crime. He stated that alarm systems are important and encourages residents to consider installing one. He acknowledged the candidates that are running for local council seats and feels that they are running a very civil campaign. He thanked Senator Dutton and his staff for all of their support for Grand Terrace. They have been involved and visible and he very much appreciates it. 3.B Packet Pg. 6 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 2 3 , 2 0 1 2 9 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council October 23, 2012 City of Grand Terrace Page 4 Updated 11/8/2012 3:44 PM Councilmember Darcy McNaboe Reported that she participated in the Foundation clean-up day. It was organized by the sub committee chair for beautifying Grand Terrace, Cindy Grande. There was a great turn-out from young adults group from Azure Hills Church. They spent the day cleaning Richard Rollins Park. They were unable to complete the project and will finish it up at a later date. She attended the San Bernardino Valley Municipal Water District Advisory Committee. There was a couple of very interesting presentations. One was the forest first program. They are trying to find ways to increase the ground water recharge through forest management practices. The second presentation was on the Santa Ana Sucker Fish law suit. The Santa Ana Sucker Fish is an endangered species in our region. The Center for Biological Diversity sued the Federal Government in order to seek increased protection for these species. One of the things that they were looking at and they have pursued with the Fish and Wildlife Service is an increased area of protection for this species in the Santa Ana River, actually moving into areas of the Santa Ana River that are dry river beds. At the last meeting the local water agencies were waiting on a decision from a federal judge presiding over their appeal of the law suit. The judge upheld the Federal Fish and Wildlife decision to set-aside some pretty good stretches of the Santa Ana River and other Southern California water ways as critical habitat for the Santa Ana Sucker Fish. This decision will cost residents 125,800 acre feet pf water per year, which could require rate payers to spend more than 3 billion dollars annually to import water. The General Manager of the San Bernardino Valley Municipal Water District is saying that they don't like the decision but they are seeing some positive moves by the Fish and Wildlife Service in the recent months. She is looking forward to updates at future meetings. Grand Terrace Girl Scout Troop 275 is working on an inside Government Project "What you do for your family and your community you do for the world because the world is after all made up of families in communities like yours". So while exploring government they are looking at questions from the US Citizens test and learning about laws that affect their daily lives, learning levels of government and following steps for writing letters to the editor. All very important letters for citizens. She requested a break down of the Schedule A charges for the Sheriff's Department and charges over-time for the fiscal year to date. City Manager Betsy Adams Responded that staff budgets $40,000 for over time each fiscal year for the Sheriff's Department and we did not come close to using that amount last year. This year we may use a little more although the Sheriff's Department has been extremely flexible with scheduling to minimize over time related to the new high school opening. Councilmember Bernardo Sandoval Reported that he had a great time at the Lion's Club Pancake Breakfast. They do an amazing job putting on the breakfast. He reported that there is a candidate forum at Nicklelodeon Pizza in Colton with a lot of local candidates that Grand Terrace residents will be voting on. Mayor Pro Tem Lee Ann Garcia Thanked Mr. Lavin for sharing the information on the Veteran's Day Memorial event that will be held at Pico Park. She thanked the committee for their efforts and encouraged residents to attend the Halloween Festival. She questioned if Staff will be participating in the meetings with the residents on Michigan Street. She also indicated that the letters that are being sent out to the Michigan Street residents are not signed and feels that it is important that they know where the letter is coming from. She announced that the new neighborhood watch signs are up on Jensen and Observation and she thanked the Sheriff's Department for all of their efforts. She appreciates the extra enforcement and operations that the Sheriff's Department provides for the City. She reported that the Country Fair will be held on November 4, 2012. The Woman's Club will also have their Annual BBQ at the Country Fair. Community Development Director Shields Indicated that staff will be attending the meetings that are held with the residents on Michigan Street. Mayor Walt Stanckiewitz 3.B Packet Pg. 7 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 2 3 , 2 0 1 2 9 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council October 23, 2012 City of Grand Terrace Page 5 Updated 11/8/2012 3:44 PM Indicated that the Sucker Fish issue is also affecting how stormwater is handled in the area. It is costing municipalities a fortune to deal with the restrictions. He indicated that in the Senior Newsletter it states that the Community Meeting for Michigan Street will be held on November 14th at City Hall, however it will be held on November 14, 2012, at Wilden Pump from 5:30 to 7:30 p.m. 6.PUBLIC HEARINGS 7.UNFINISHED BUSINESS 8.NEW BUSINESS A.County of San Bernardino Appointment to the Oversight Board of the Grand Terrace Successor Agency To recommend to the County Board of Supervisors that they appoint Stacey West as the County's appointment to the Oversight Board of the Grand Terrace Successor Agency of the former Grand Terrace Redevelopment Agency. RESULT:APPROVED [UNANIMOUS] MOVER:Walt Stanckiewitz, Mayor SECONDER:Bernardo Sandoval, Councilman AYES:Stanckiewitz, Garcia, McNaboe, Sandoval, Hays B.Request to Install Red Curb at the North East Corner of Vista Grande Way and Grand Terrace Road To adopt a Resolution authorizing the Traffic Engineer to prohibit parking of vehicles on the northwest corner of Vista Grande Way and Grand Terrace Road. RESULT:APPROVED [UNANIMOUS] MOVER:Bernardo Sandoval, Councilman SECONDER:Lee Ann Garcia, Mayor Pro Tem AYES:Stanckiewitz, Garcia, McNaboe, Sandoval, Hays C.Treasurer's Report December 31, 2011 To receive and file the Treasurer's Report dated December 31, 2011. RESULT:APPROVED [UNANIMOUS] MOVER:Darcy McNaboe, Councilwoman SECONDER:Bernardo Sandoval, Councilman AYES:Stanckiewitz, Garcia, McNaboe, Sandoval, Hays D.Contract Amendment with California Public Employees' Retirement System (CalPERS) to Establish Second Tier Retirement Benefit for Future Employees Adopt a Resolution of Intention to approve an amendment to the contract with CalPERS for employee retirement benefits for future employees and introduce the Ordinance to amend the contact with CalPERS for employee retirement benefits for future employees. 3.B Packet Pg. 8 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 2 3 , 2 0 1 2 9 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council October 23, 2012 City of Grand Terrace Page 6 Updated 11/8/2012 3:44 PM RESULT:APPROVED [UNANIMOUS] MOVER:Bernardo Sandoval, Councilman SECONDER:Lee Ann Garcia, Mayor Pro Tem AYES:Stanckiewitz, Garcia, McNaboe, Sandoval, Hays 9.CLOSED SESSION ADJOURN The Next Regular City Council Meeting will be held on Tuesday, November 13, 2012, at 6:00 PM. _________________________________ Mayor of the City of Grand Terrace _________________________________ City Clerk of the City of Grand Terrace 3.B Packet Pg. 9 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 2 3 , 2 0 1 2 9 : 0 0 P M ( C o n s e n t C a l e n d a r ) AGENDA REPORT MEETING DATE:November 13, 2012 Council & Successor Agency Item TITLE:Adopt Resolutions Providing Bank and Investment Account Signature Authority PRESENTED BY:Tracey Martinez, City Clerk RECOMMENDATION:Adopt Resolutions to Change Bank and Investment Account Signature Authority BACKGROUND: The City must update bank and investment signature authorizations on file with the various institutions which hold City and Successor Agency monies as changes in personnel arise. DISCUSSION: With recent changes in personnel, bank account signature authority will need to be updated on all accounts. Resolutions have been prepared for the various banks and investment accounts to authorize the implementation of the necessary changes. FISCAL IMPACT: There is no fiscal impact. ATTACHMENTS: ·Bank of America Resolution Successor Agency Account ·Bancomer Resolution ·US Bank Resolution ·First Financial Resolution ·CAMP Resolution ·Bank of America Resolution APPROVALS: Tracey Martinez Completed 11/06/2012 5:59 PM Finance Completed 11/07/2012 11:52 AM City Attorney Completed 11/07/2012 3:48 PM City Manager Completed 11/07/2012 4:24 PM City Council Pending 3.C Packet Pg. 10 RESOLUTION NO. 2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AUTHORIZING SIGNERS FOR BANK OF AMERICA BANK ACCOUNT FOR CITY OF GRAND TERRACE AS SUCCESSOR AGENCY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY WHEREAS,the City of Grand Terrace is a municipal corporation established under the laws of the State of California; and WHEREAS,Bank of America is a federally chartered bank under the laws of the United States; and WHEREAS,the City of Grand Terrace desires to establish a separate bank account for funds of the City of Grand Terrace as Successor Agency of the City of Grand Terrace Community Redevelopment Agency; and WHEREAS,the City Council designates the City Manager,Acting City Manager, if so designated, Interim Finance Director, City Clerk and Community Development Director as authorized signers on the Bank of America bank accounts; and WHEREAS,Bank of America requires the City to adopt a corporate resolution and authorization to designate authorized signers on bank accounts; THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE HEREBY RESOLVES THE FOLLOWING: Section 1 -All previous resolutions of designated authorized signers with Bank of America are hereby revoked. Section 2 -The foregoing is a complete, true and correct resolution adopted by the City Council of the City of Grand Terrace and that the resolution is still in full force and effect and has not been amended or revoked and does not exceed the objects or powers of the City Council of the City of Grand Terrace. Section 3 -The persons below are authorized account signers and are authorized to execute any banking documents, certificate of incumbency, tax information certificate and authorization as needed: Position Individual Name City Manager Betsy M. Adams City Clerk Tracey R. Martinez Interim Finance Director Steve Elam Community Development Director Richard Shields 3.C.a Packet Pg. 11 At t a c h m e n t : B a n k o f A m e r i c a R e s o l u t i o n S u c c e s s o r A g e n c y A c c o u n t ( 1 1 6 5 : B a n k a n d I n v e s t m e n t A c c o u n t S i g n a t u r e A u t h o r i t y ) RESOLUTION NO. 2012- Page 2 Section 4 -Any One of the individuals named as authorized signers acting on behalf of the City of Grand Terrace is authorized to execute documents on behalf of the City. Section 5 -Any Two of the individuals named as authorized signers acting on behalf of the City of Grand Terrace is authorized to checks on behalf of the City. Section 6 -The City Clerk shall certify to the adoption of this resolution. PASSED, APPROVED AND ADOPTED this 13th day of November,2012. ATTEST: City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace I, TRACEY MARTINEZ, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No. was introduced and adopted at a regular meeting of the City Council, as the Successor Agency of the former Grand Terrace Community Redevelopment Agency, on the 13th day of November, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk Approved as to form: City Attorney 3.C.a Packet Pg. 12 At t a c h m e n t : B a n k o f A m e r i c a R e s o l u t i o n S u c c e s s o r A g e n c y A c c o u n t ( 1 1 6 5 : B a n k a n d I n v e s t m e n t A c c o u n t S i g n a t u r e A u t h o r i t y ) RESOLUTION NO.2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AUTHORIZING SIGNER FOR BBVA BANCOMER, USA BANK ACCOUNT WHEREAS,the City of Grand Terrace is a municipal corporation established under the laws of the State of California; and WHEREAS,the BBVA Bancomer USA is a federally chartered bank under the laws of the United States; and WHEREAS,the City of Grand Terrace needs to update its deposit agreement and signature card with BBVA Bancomer USA; and WHEREAS,the City designates the City Manager, Acting City Manager, if so designated, Interim Finance Director, City Clerk as authorized signers on the BBVA Bancomer USA bank accounts; and WHEREAS BBVA Bancomer USA requires the City to adopt a corporate resolution and authorization to designate authorized signers on bank accounts; THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE HEREBY RESOLVES THE FOLLOWING: Section 1 -All previous resolutions of designated authorized signers with BBVA Bancomer USA are hereby revoked. Section 2 -Authorized signers on BBVA Bancomer USA accounts are: Position Individual Name City Manager Betsy Adams City Clerk Tracey R. Martinez Interim Finance Director Steve Elam Section 3 -Any one of the individuals named as authorized signers acting on behalf of the City of Grand Terrace is authorized to execute documents on behalf of the City. Section 4 -Authorized amount of investment is $250,000 or the federally insured limit which ever is less. Section 5 -Interest payments, withdrawals and matured investments may only to transferred or paid to bank accounts in the name of the City of Grand Terrace. 3.C.b Packet Pg. 13 At t a c h m e n t : B a n c o m e r R e s o l u t i o n ( 1 1 6 5 : B a n k a n d I n v e s t m e n t A c c o u n t S i g n a t u r e A u t h o r i t y ) RESOLUTION NO. 2012- PASSED, APPROVED AND ADOPTED this 13th day of November,2012. ATTEST: City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace I, TRACEY MARTINEZ, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No. was introduced and adopted at a regular meeting of the City Council,as the Successor Agency of the former Grand Terrace Community Redevelopment Agency, on the 13th day of November, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk Approved as to form: City Attorney 3.C.b Packet Pg. 14 At t a c h m e n t : B a n c o m e r R e s o l u t i o n ( 1 1 6 5 : B a n k a n d I n v e s t m e n t A c c o u n t S i g n a t u r e A u t h o r i t y ) RESOLUTION NO. 2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AUTHORIZING SIGNER FOR US BANK, SAFEKEEPING ACCOUNT WHEREAS,the City of Grand Terrace is a municipal corporation established under the laws of the State of California; and WHEREAS,the US Bank is a federally chartered bank under the laws of the United States; and WHEREAS,the City of Grand Terrace needs to update its deposit agreement, signature card or notice of incumbency with US Bank; and WHEREAS,the City designates the City Manager, Acting City Manager, if so designated, City Clerk and Interim Finance Director as authorized signers on the US Bank Safekeeping bank account; and WHEREAS US Bank requires the City to adopt a corporate resolution and Authorization to designate authorized signers on such accounts; THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE HEREBY RESOLVES THE FOLLOWING: Section 1 -All previous resolutions of designated authorized signers with US Bank are hereby revoked. Section 2 -Authorized signers on US Bank accounts are: Position Individual Name City Manager Betsy Adams City Clerk Tracey R. Martinez Interim Finance Director Steve Elam Section 3 -Any one of the individuals named as authorized signers acting on behalf of the City of Grand Terrace is authorized to execute documents on behalf of the City. Section 4 -Authorized investment held in US Bank Safekeeping account must be invested in accordance with permitted investments in California Government Code Sections 53601 and 53635. PASSED, APPROVED AND ADOPTED this 13th day of November,2012. 3.C.c Packet Pg. 15 At t a c h m e n t : U S B a n k R e s o l u t i o n ( 1 1 6 5 : B a n k a n d I n v e s t m e n t A c c o u n t S i g n a t u r e A u t h o r i t y ) RESOLUTION NO. 2012 - Page 2 ATTEST: City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace I, TRACEY MARTINEZ, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No. was introduced and adopted at a regular meeting of the City Council, as the Successor Agency of the former Grand Terrace Community Redevelopment Agency, on the 13th day of November, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk Approved as to form: City Attorney 3.C.c Packet Pg. 16 At t a c h m e n t : U S B a n k R e s o l u t i o n ( 1 1 6 5 : B a n k a n d I n v e s t m e n t A c c o u n t S i g n a t u r e A u t h o r i t y ) RESOLUTION NO. 2012 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AUTHORIZING SIGNER FOR FIRST FINANCIAL EQUITY ACCOUNTS WHEREAS,the City of Grand Terrace is a municipal corporation established under the laws of the State of California; and WHEREAS,the First Financial Equity is a brokerage firm under the laws of the United States; and WHEREAS,the City of Grand Terrace needs to update its deposit agreement and signature card with First Financial Equity Money Market Fund; and WHEREAS,the City designates the City Manager, Acting City Manager, if so designated, City Clerk and Interim Finance Director as authorized signers on all accounts held with First Financial Equity and the First Financial Equity Money Market Fund; and WHEREAS First Financial Equity requires the City to adopt a corporate resolution and authorization to designate authorized signers on all accounts; THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE HEREBY RESOLVES THE FOLLOWING: Section 1 -All previous resolutions of designated authorized signers with First Financial Equity are hereby revoked. Section 2 - Authorized signers on First Financial Equity accounts are: Position Individual Name City Manager Betsy Adams City Clerk Tracey R.Martinez Interim Finance Director Steve Elam Section 3 -Any one of the individuals named as authorized signers acting on behalf of the City of Grand Terrace is authorized to execute documents on behalf of the City. Section 4 -Interest payments, withdrawals and matured investments may only to transferred or paid to bank accounts in the name of the City of Grand Terrace. PASSED, APPROVEDAND ADOPTED this 13th day of November,2012. 3.C.d Packet Pg. 17 At t a c h m e n t : F i r s t F i n a n c i a l R e s o l u t i o n ( 1 1 6 5 : B a n k a n d I n v e s t m e n t A c c o u n t S i g n a t u r e A u t h o r i t y ) RESOLUTION NO. 2012- Page 2 ATTEST: City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace I, TRACEY MARTINEZ, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No. was introduced and adopted at a regular meeting of the City Council, as the Successor Agency of the former Grand Terrace Community Redevelopment Agency, on the 13th day of November, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk Approved as to form: City Attorney 3.C.d Packet Pg. 18 At t a c h m e n t : F i r s t F i n a n c i a l R e s o l u t i o n ( 1 1 6 5 : B a n k a n d I n v e s t m e n t A c c o u n t S i g n a t u r e A u t h o r i t y ) RESOLUTION NO. 2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AUTHORIZING SIGNERS FOR CALIFORNIA ASSET MANAGEMENT PROGRAM WHEREAS, the City of Grand Terrace is a municipal corporation established under the laws of the State of California; and WHEREAS,the California Asset Management Trust was established pursuant to and in accordance with Joint Powers Exercise of Powers Act, by a Declaration of Trust, made as of December 15, 1989 and as subsequently amended, as a vehicle for public agencies to jointly exercise their common power to invest bond proceeds and other funds;and WHEREAS, the California Asset Management Program is an authorized investment under the investment policy of the city and under government code section 53600; and WHEREAS, the City of Grand Terrace periodically needs to update its authorized signers with the California Asset Management Program; and WHEREAS, authorized signers will have the authority to deposit and withdraw funds with the California Asset Management Program on behalf of the City; and WHEREAS, deposits and withdrawals may only come from designated, authorized City operating and City investment accounts; and WHEREAS, California Asset Management Program requires the City to adopt a resolution to change authorized signers on the account; and THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE HEREBY RESOLVES THE FOLLOWING: Section 1 -All previous resolutions of designated authorized signers with the California Asset Management Program are hereby revoked. Section 2 -Authorized signers on the California Asset Management Program account are: Position Individual Name City Manager Betsy M. Adams City Clerk Tracey R.Martinez Interim Finance Director Steve Elam 3.C.e Packet Pg. 19 At t a c h m e n t : C A M P R e s o l u t i o n ( 1 1 6 5 : B a n k a n d I n v e s t m e n t A c c o u n t S i g n a t u r e A u t h o r i t y ) RESOLUTION NO. 2012 - Section 3 -Any one of the named individuals is authorized to sign on behalf of the City of Grand Terrace and is authorized to execute documents on behalf of the City. PASSED, APPROVED AND ADOPTED this 13th day of November,2012. ATTEST: City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace I, TRACEY MARTINEZ, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No. was introduced and adopted at a regular meeting of the City Council, as the Successor Agency of the former Grand Terrace Community Redevelopment Agency, on the 13th day of November, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk Approved as to form: City Attorney 3.C.e Packet Pg. 20 At t a c h m e n t : C A M P R e s o l u t i o n ( 1 1 6 5 : B a n k a n d I n v e s t m e n t A c c o u n t S i g n a t u r e A u t h o r i t y ) RESOLUTION NO. 2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AUTHORIZING SIGNERS FOR BANK OF AMERICA BANK ACCOUNTS WHEREAS,the City of Grand Terrace is a municipal corporation established under the laws of the State of California; and WHEREAS,Bank of America is a federally chartered bank under the laws of the United States; and WHEREAS,the City of Grand Terrace needs to update its signature card(s) periodically with Bank of America due to changes in city staff or changes in staff duties; and WHEREAS,the City Council designates the City Manager, Acting City Manager, if so designated, City Clerk, Interim Finance Director and Community Development Director as authorized signers on Bank of America bank accounts; and WHEREAS,Bank of America requires the City to adopt a corporate resolution and authorization to designate authorized signers on bank accounts; THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE HEREBY RESOLVES THE FOLLOWING: Section 1 -All previous resolutions of designated authorized signers for the City of Grand Terrace with Bank of America are hereby revoked. Section 2 -Authorize account signers on Bank of America accounts as: Position Individual Name City Manager Betsy M. Adams City Clerk Tracey R. Martinez Interim Finance Director Steve Elam Community Development Director Richard Shields Section 3 -Any One of the individuals named as authorized signers acting on behalf of the City of Grand Terrace is authorized to execute documents on behalf of the City. Section 4 -Any Two of the individuals named as authorized signers acting on behalf of the City of Grand Terrace is authorized to checks on behalf of the City. 3.C.f Packet Pg. 21 At t a c h m e n t : B a n k o f A m e r i c a R e s o l u t i o n ( 1 1 6 5 : B a n k a n d I n v e s t m e n t A c c o u n t S i g n a t u r e A u t h o r i t y ) RESOLUTION NO. 2012- Page 2 PASSED, APPROVED AND ADOPTED this 13th day of November, 2012. ATTEST: ___________________________________ City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace I, TRACEY MARTINEZ, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No. was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace on the 13th day of November, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________ City Clerk Approved as to form: City Attorney 3.C.f Packet Pg. 22 At t a c h m e n t : B a n k o f A m e r i c a R e s o l u t i o n ( 1 1 6 5 : B a n k a n d I n v e s t m e n t A c c o u n t S i g n a t u r e A u t h o r i t y ) The historical and cultural activities committee Minutes for September 2012 The meeting was called to order by chair, Pauline Grant at 7:09 p.m. Those present were Pauline Grant, Masako Gifford, Shelly Rosenkild, Peggy Reagan, Martha Monteon and city clerk, Tracy Martinez. Secretary's Report: The minutes for June 4, 2012 were read and approved as corrected. Martha's phone number was incorrect and actual number is 909-864-3610. Treasurer's Report: The budget showed a balance of $568.60 and a petty cash balance of $118.66. Country Fair: The previous country fair banner was found so there is not a need new banner as discussed in June. Shelly presented a poster for approval. Masako will shop for paper products needed. There will be a waiver for each judge to sign prior to tasting. All participants, in food contest, are to disclose any nuts or alcohol used in preparing the food. Tracy will check on cost of insurance. She will also check with city attorney regarding guidelines and applications. Hearing no further business the meeting was adjourned at 8:02 p.m. Next meeting will be Monday, October 1 st. Respectfully Submitted Peggy Reagan Secretary 3.D Packet Pg. 23 Co m m u n i c a t i o n : A c c e p t H i s t o r i c a l a n d C u l t u r a l A c t i v i t i e s C o m m i t t e e M e e t i n g M i n u t e s o f S e p t e m b e r 4 , 2 0 1 2 ( C o n s e n t C a l e n d a r ) AGENDA REPORT MEETING DATE:November 13, 2012 Council & Successor Agency Item TITLE:Approve a Professional Services Agreement with Willdan Financial Services To Provide Interim Finance Director Services PRESENTED BY:Betsy Adams, City Manager RECOMMENDATION:Approve a professional services agreement with Willdan Financial Services for Interim Finance Director services and authorize the City Manager to execute the agreement. BACKGROUND: The Willdan Group, Inc. has provided professional and technical services to public agencies since 1964. It is comprised of four wholly-owned subsidiaries --Willdan Engineering, Willdan Energy Solutions, Willdan Homeland Solutions, and Willdan Financial Services. The City has obtained professional and technical services, primarily in the areas of engineering,inspection and plan review, from Willdan Engineering since December 6, 2006. DISCUSSION: Unlike the vacancy created the when Community & Economic Development Director recently retired,which resulted in a departmental merger and the elimination of a department director position, the absence of a Finance Director cannot be addressed by existing staff absorbing the responsibilities. An Interim Finance Director is needed to oversee all Finance Department activities; complete the 2011 annual financial audit; prepare the Fiscal Year (FY) 2012-13 mid-year budget review; begin development of the FY 2013-14 operating budget; and complete the Successor Agency due diligence reviews. In the short-term, the City Manager recommends contracting with Willdan Financial Services (Willdan) for an Interim Finance Director. A professional services agreement with Willdan is for an Interim Finance Director for a period of three months in included as the first attachment to the staff report. The resume of the highly qualified Interim Finance Director available to Grand Terrace through Willdan is included as the second attachment. During this time period, and likely by the end of the calendar year, the City Manager will assess how best to staff the Finance Department,which now has two of its three positions filled through temporary service agreements. With the fiscal uncertainty created by Successor Agency enforceable obligations disallowed the Department of Finance (currently being appealed), the potential of providing these services through contract on an on-going basis will need to be considered. FISCAL IMPACT: 3.E Packet Pg. 24 The professional services agreement with Willdan Financial Services has a $25,000 not-to-exceed limit. It provides for the Interim Finance Director for 36 hours per week at a rate of $70/hour. This amount should be adequate for the three month period (November 5, 2012 through January 31, 2012) when holidays and the closure of City Hall between Christmas and New Year’s Day are factored in. Salary and benefit savings in the Finance Department’s operating budget should offset a significant portion of this expense. ATTACHMENTS: ·Grand Terrace Agrmnt Executed by WFS Nov 2012 ·Interim Finance Director Resume APPROVALS: Betsy Adams Completed 11/07/2012 11:03 AM Finance Completed 11/07/2012 12:05 PM City Attorney Completed 11/07/2012 3:31 PM City Manager Completed 11/07/2012 4:19 PM City Council Pending 3.E Packet Pg. 25 3. E . a Pa c k e t P g . 2 6 Attachment: Grand Terrace Agrmnt Executed by WFS Nov 2012 (1163 : Interim Finance Director) 3. E . a Pa c k e t P g . 2 7 Attachment: Grand Terrace Agrmnt Executed by WFS Nov 2012 (1163 : Interim Finance Director) 3. E . a Pa c k e t P g . 2 8 Attachment: Grand Terrace Agrmnt Executed by WFS Nov 2012 (1163 : Interim Finance Director) 3. E . a Pa c k e t P g . 2 9 Attachment: Grand Terrace Agrmnt Executed by WFS Nov 2012 (1163 : Interim Finance Director) 3. E . a Pa c k e t P g . 3 0 Attachment: Grand Terrace Agrmnt Executed by WFS Nov 2012 (1163 : Interim Finance Director) 3. E . a Pa c k e t P g . 3 1 Attachment: Grand Terrace Agrmnt Executed by WFS Nov 2012 (1163 : Interim Finance Director) 3. E . a Pa c k e t P g . 3 2 Attachment: Grand Terrace Agrmnt Executed by WFS Nov 2012 (1163 : Interim Finance Director) 3. E . a Pa c k e t P g . 3 3 Attachment: Grand Terrace Agrmnt Executed by WFS Nov 2012 (1163 : Interim Finance Director) 3. E . a Pa c k e t P g . 3 4 Attachment: Grand Terrace Agrmnt Executed by WFS Nov 2012 (1163 : Interim Finance Director) 3. E . a Pa c k e t P g . 3 5 Attachment: Grand Terrace Agrmnt Executed by WFS Nov 2012 (1163 : Interim Finance Director) 3. E . a Pa c k e t P g . 3 6 Attachment: Grand Terrace Agrmnt Executed by WFS Nov 2012 (1163 : Interim Finance Director) 3. E . a Pa c k e t P g . 3 7 Attachment: Grand Terrace Agrmnt Executed by WFS Nov 2012 (1163 : Interim Finance Director) Interim Finance Director for the City of Grand Terrace Steve Elam Project Manager Owing to his extensive experience in financial and administration services, Mr. Elam has been selected to serve as Interim Finance Director for the City of Grand Terrace. Project Experience City of Desert Hot Springs, CA — Interim Administrative Services Director Services: In this role, Mr. Elam is responsible for the entire accounting system, including accounts payable, cash receipts, payroll, developer accountings, preparation of treasurer’s reports, monthly bank reconciliations, five-year financial forecasting, budget preparation, monthly financial reporting, contract management, preparation of internal polices and audit coordination; as well as Human Resources/Risk Management and Information Technology support functions. City of Moreno Valley, CA — Financial & Administrative Services Director/ Treasurer: Mr. Elam directed the operations of the Financial & Administrative Services Department for the City of Moreno Valley following departmental consolidation of Finance Department and Administrative Services Department in July, 2008. He also oversaw five divisions with functional responsibility for budgeting, treasury, accounting, financial reporting, technology services, purchasing, facilities maintenance, and animal services. Mr. Elam directed a staff of 86 employees with cost center responsibility for $15.5 million, in addition to budgetary responsibility for $182 million city operating budget. Mr. Elam also directed the operations of the Administrative Services Department for the City and oversaw four divisions with functional responsibility for risk management (including general liability, workers’ compensation, and emergency operations/volunteer services), technology services, facilities maintenance, and animal services. He directed a staff of 62 employees with cost center responsibility for $13 million. City of Simi Valley, CA — Director of Administrative Services: Mr. Elam directed the operations of the Administrative Services Department for the City of Simi Valley. He oversaw six divisions with functional responsibilities for budgeting, treasury, accounting, financial reporting, information technology, purchasing, telephone and radio communications, graphics/printing, mail services, customer services, and workers’ compensation administration. Mr. Elam also managed the Human Resources Office from 1996 through 2001, prior to a reorganization that moved that function to the City Manager’s Office. He directed a staff of 48 employees with cost center responsibility for approximately $12 million, in addition to budgetary responsibility for $130 million city budget. City of Thousand Oaks, CA — Deputy Finance Director: Mr. Elam was responsible for the management of four divisions with functional responsibilities for budgeting, accounting, financial reporting, purchasing, information systems, customer service, and facilities operation/maintenance. He directed a staff of 45 employees with cost center responsibility for $5.8 million. Education Master of Business Administration, Pepperdine University Bachelor of Arts, Biola University Affiliations Government Finance Officers Association (GFOA) California Society of Municipal Finance Officers (CSMFO) California Municipal Treasurers Association (CMTA) 37 Years Experience 3.E.b Packet Pg. 38 At t a c h m e n t : I n t e r i m F i n a n c e D i r e c t o r R e s u m e ( 1 1 6 3 : I n t e r i m F i n a n c e D i r e c t o r ) AGENDA REPORT MEETING DATE:November 13, 2012 Council Item TITLE:Approval of Check Register No. 11-13-2012 PRESENTED BY:Steve Elam, Interim Finance Director RECOMMENDATION:Approve Attached Check Register as Submitted, which includes the Check Register Account Index and Voucher Listings for Fiscal Year 2012-13. BACKGROUND: The Check Register for November 13,2012 is presented in accordance with Government Code §37202. 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 Successor Agency CRA. Expenditure account number formats are XX-XXX-XXX [Fund- Depart-General 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 $335,748.07 in accounts payable checks was issued during the period for services, reimbursements, supplies and contracts and are detailed in the attached Voucher List. Payroll costs for the period amounted to $56,197.22 and are summarized below. Some of the non-routine items include: 68646 CA State Controller FY 2011-12 Audit Confirmation Letter Fee $100.00 68647 United States Treasury Interest on IRS Settlement $159.08 68648 Studio 33 Productions New PA System $439.62 68649 League of CA Cities Annual IE Division Dinner-Stanckiewitz $45.00 68671 Alliant Insurance Services Event Insurance for Annual Country Fair $441.87 68673 Barr Door Inc Repairs to City Hall Front Doors $180.55 68690 Houston & Harris PCS, Inc. Hydro-wash Sewer Lines & Storm Drain $4,957.80 68702 Roquet Paving Inc Grind and Overlay at Various Locations on Pascal $4,825.00 Some the larger items include: 68670 Albert A. Webb Associates September Master Plan Storm Drain Services $51,854.55 3.F Packet Pg. 39 68705 S.B. County Sheriff November Law Enforcement Services and Quarterly Expense/Overtime Fees $142,852.23 Payroll costs processed for the period ending October 23, 2012 are as follows: Date Period Payroll and related costs 10/12/12 Biweekly $56,197.92 FISCAL IMPACT: All disbursements are made in accordance with the Adopted Budget for Fiscal Year 2012-13. ATTACHMENTS: ·Check Register ·Check Register Account Index ·Warrant Register Account Index APPROVALS: Steve Elam Completed 11/08/2012 8:58 AM Finance Completed 11/08/2012 8:58 AM City Attorney Completed 11/08/2012 9:49 AM City Manager Completed 11/08/2012 10:26 AM City Council Pending 3.F Packet Pg. 40 11/07/2012 Voucher List CITY OF GRAND TERRACE 1 4:21:47PM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68642 10/22/2012 010693 ARROWHEAD UNITED WAY PRend 10/12/12 Contributions for PRend 10/12/12 10-022-65-00 17.50 Total : 17.50 68643 10/22/2012 010164 GREAT-WEST PRending10/22/12 Employee Deferred Compensation P/R 10-022-63-00 2,322.96 Total : 2,322.96 68644 10/22/2012 011206 AUL 3121 TRUST PRending10/12/12 Contributions for PR end 10/12/12 10-022-68-00 243.39 Total : 243.39 68645 10/24/2012 005702 PUBLIC EMPLOYEES' RETIREMENT PRend 10/12/12 Contributions for PRend 10/12/12 10-022-62-00 15,121.55 Total : 15,121.55 68646 10/24/2012 001699 CALIF. STATE CONTROLLER 10242012 FY 11-12 Audit Confirmation Fees 10-140-250-000-000 100.00 Total : 100.00 68647 10/31/2012 011248 UNITED STATES TREASURY 10312012 INTEREST ON IRS SETTLEMENT 10-190-220-000-000 159.08 Total : 159.08 68648 10/31/2012 010447 STUDIO 33 PRODUCTIONS 7193 PA System 10-190-220-000-000 439.62 Total : 439.62 68649 10/31/2012 004350 LEAGUE OF CALIFORNIA CITIES, I 10162012 IE Division Dinner-Stanckiewitz 10-110-270-000-000 45.00 Total : 45.00 68650 10/31/2012 011206 AUL 3121 TRUST PRend 10/12&10/26/12Contribution for PR end 10-12 & 10-26-12 10-022-68-00 573.00 Total : 573.00 68651 10/31/2012 010693 ARROWHEAD UNITED WAY PRend 10/12 & 10/26Contributions for PR ending 10-12 & 1Page: 3.F.a Packet Pg. 41 At t a c h m e n t : C h e c k R e g i s t e r ( 1 1 6 9 : C h e c k R e g i s t e r N o . 1 1 - 1 3 - 2 0 1 2 ) 11/07/2012 Voucher List CITY OF GRAND TERRACE 2 4:21:47PM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68651 10/31/2012 (Continued)010693 ARROWHEAD UNITED WAY 10-022-65-00 35.00 Total : 35.00 68652 11/5/2012 001038 VERIZON WIRELESS-LA 1131220981 Oct/Nov Wireless Services-Public Works 10-175-240-000-000 109.18 Total : 109.18 68653 11/5/2012 010693 ARROWHEAD UNITED WAY PRend10/26/12 Contributions for PR ending 10/26/12 10-022-65-00 17.50 Total : 17.50 68654 11/5/2012 010164 GREAT-WEST PRending 10/26/12Employee Deferred Compensation PR 10-022-63-00 3,781.10 Total : 3,781.10 68655 11/5/2012 011206 AUL 3121 TRUST PRend 10/26/12 Contributions for PR end 10/26/12 10-022-68-00 278.56 Total : 278.56 68656 11/5/2012 011196 FIDELITY SECURITY LIFE Nov.EmpPaid November Employee Paid Vision Insurance 10-022-61-00 118.60 Total : 118.60 68657 11/5/2012 011194 AMERICAN FIDELITY ASSURANCE CO OctEmpPaid Acc/SuppOct. Emp Plaid Accident/Supp Life/ Supp 23-250-20-00 781.92 Total : 781.92 68658 11/5/2012 011195 AMERICAN FIDELITY ASSURANCE CO OctEmpPaidFlex Oct. Emp Paid Flex Spending/Dep Care 23-250-10-00 816.68 Total : 816.68 68659 11/5/2012 011194 AMERICAN FIDELITY ASSURANCE CO NovEmpPaid Acc/SuppNov. Emp Paid Accident/supp Life/ Supp 23-250-20-00 686.92 Total : 686.92 68660 11/5/2012 011092 METLIFE-GROUP BENEFITS NovEmpPaidDentalNovember Employee/Dependant Dental 10-022-61-00 1,313.73 2Page: 3.F.a Packet Pg. 42 At t a c h m e n t : C h e c k R e g i s t e r ( 1 1 6 9 : C h e c k R e g i s t e r N o . 1 1 - 1 3 - 2 0 1 2 ) 11/07/2012 Voucher List CITY OF GRAND TERRACE 3 4:21:47PM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 1,313.73 68660 11/5/2012 011092 METLIFE-GROUP BENEFITS 68661 11/5/2012 005702 PUBLIC EMPLOYEES' RETIREMENT PRend10/26/12 Contributions PRend 10/26/12 10-022-62-00 15,293.23 Total : 15,293.23 68662 11/6/2012 001213 AT & T Oct 2012 Sep/Oct Phones & Internet Service 10-190-235-000-000 465.87 09-440-235-000-000 88.93 Total : 554.80 68663 11/6/2012 001206 ARROWHEAD CREDIT UNION Sep-Oct 2012 Sept-Oct Visa Charges 09-440-220-000-000 146.92 09-440-210-000-000 46.02 09-440-700-000-000 22.54 10-380-701-000-000 147.62 10-808-221-000-000 32.39 10-190-220-000-000 35.54 10-175-272-000-000 1,540.22 Total : 1,971.25 68664 11/6/2012 003210 DEPT 32-2500233683 6035322500233683MAINT SUPPLIES 10-808-221-000-000 503.11 10-195-245-000-000 81.86 Total : 584.97 68665 11/6/2012 001907 COSTCO #478 0478 12 0092 5 CHILD CARE SUPPLIES 09-440-220-000-000 75.00 09-440-220-000-000 116.70 Total : 191.70 68666 11/6/2012 006285 RIVERSIDE HIGHLAND WATER CO Aug-Oct 2012 Aug/Oct Water Usage and Fees 3Page: 3.F.a Packet Pg. 43 At t a c h m e n t : C h e c k R e g i s t e r ( 1 1 6 9 : C h e c k R e g i s t e r N o . 1 1 - 1 3 - 2 0 1 2 ) 11/07/2012 Voucher List CITY OF GRAND TERRACE 4 4:21:47PM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68666 11/6/2012 (Continued)006285 RIVERSIDE HIGHLAND WATER CO 34-700-767-000-000 10.80 48-600-330-010-000 21.60 10-450-238-000-000 7,494.08 32-600-214-000-000 41.50 32-600-216-000-000 10.80 32-600-307-000-000 -58.40 10-190-238-000-000 1,160.79 09-440-238-000-000 187.28 10-805-238-000-000 1,766.32 32-600-301-000-000 10.80 32-600-326-000-000 21.60 34-700-710-000-000 10.80 26-600-239-000-000 457.74 26-601-239-000-000 73.13 Total : 11,208.84 68667 11/7/2012 005702 PUBLIC EMPLOYEES' RETIREMENT November PERS HealthNov. Pers Health Ins. Employees and 21-175-142-000-000 307.48 21-625-142-000-000 85.67 32-200-142-000-000 351.40 10-022-61-00 5,209.34 10-120-142-000-000 561.00 10-125-142-000-000 329.44 10-140-142-000-000 658.87 10-172-142-000-000 461.20 10-175-142-000-000 592.98 10-185-142-000-000 131.77 10-190-265-000-000 37.44 10-370-142-000-000 614.95 10-380-142-000-000 439.25 09-440-142-000-000 2,325.05 10-450-142-000-000 175.70 10-625-142-000-000 199.85 16-175-142-000-000 549.08 Total : 13,030.47 4Page: 3.F.a Packet Pg. 44 At t a c h m e n t : C h e c k R e g i s t e r ( 1 1 6 9 : C h e c k R e g i s t e r N o . 1 1 - 1 3 - 2 0 1 2 ) 11/07/2012 Voucher List CITY OF GRAND TERRACE 5 4:21:47PM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68668 11/7/2012 006720 SO.CA.EDISON COMPANY Oct 2012 October Energy Usage 10-805-238-000-000 904.68 10-172-238-000-000 54.97 10-175-238-000-000 54.98 09-440-238-000-000 1,066.63 10-190-238-000-000 3,372.43 10-450-238-000-000 1,122.63 16-510-238-000-000 514.46 Total : 7,090.78 68669 11/7/2012 006730 SO.CA.GAS COMPANY Oct 2012 October Natural Gas Usage 10-190-238-000-000 34.66 09-440-238-000-000 41.08 10-805-238-000-000 60.49 Total : 136.23 68670 11/13/2012 011143 ALBERT A. WEBB ASSOCIATES 123378 Sept Master Plan Storm Drain Services 50-900-311-001-000 51,854.55 Total : 51,854.55 68671 11/13/2012 010730 ALLIANT INSURANCE SERVICES, ATTN ACCTS RECEIVABLE79653 Event Insurance-Country Fair 10-804-220-000-000 441.87 Total : 441.87 68672 11/13/2012 010293 AVAYA, INC.2732168349 OCT/NOV PHONE AND VOICEMAIL MAINT 10-190-246-000-000 183.46 Total : 183.46 68673 11/13/2012 001383 BARR DOOR INC.17032 Repair City Hall Front Door 10-195-246-000-000 180.55 Total : 180.55 68674 11/13/2012 011213 BLACK & VEATCH CORP 1147861 September Sewer Study Services 21-175-255-000-000 920.00 Total : 920.00 68675 11/13/2012 001713 CA. DEPT. OF TRANSPORTATION SL130214 July-Sept I-215 Ramps Energy & Maint 16-510-238-000-000 203.92 5Page: 3.F.a Packet Pg. 45 At t a c h m e n t : C h e c k R e g i s t e r ( 1 1 6 9 : C h e c k R e g i s t e r N o . 1 1 - 1 3 - 2 0 1 2 ) 11/07/2012 Voucher List CITY OF GRAND TERRACE 6 4:21:47PM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 203.92 68675 11/13/2012 001713 CA. DEPT. OF TRANSPORTATION 68676 11/13/2012 001810 CITY NEWSPAPER GROUP 16638 OVERSIGHT/PL COMM APPLICATIONS 10-125-230-000-000 123.03 16693 PL COMM APPLICATIONS EXTENTION 10-125-230-000-000 61.51 Total : 184.54 68677 11/13/2012 006435 CITY OF SAN BERNARDINO 2013-100000034 OCTOBER ANIMAL CONTROL SRVS 10-187-256-000-000 8,682.00 Total : 8,682.00 68678 11/13/2012 001950 DATA QUICK B1-2090920 October Subscription Services 10-370-250-000-000 87.00 10-380-250-000-000 43.50 Total : 130.50 68679 11/13/2012 001942 DATA TICKET INC.43549 Sept Parking Cite Processing Services 10-140-255-000-000 115.00 Total : 115.00 68680 11/13/2012 002082 DISCOUNT SCHOOL SUPPLY D16637940101 CHILD CARE SUPPLIES 09-440-228-000-000 1,225.43 D16681770101 CHILD CARE SUPPLIES 09-440-221-000-000 251.27 Total : 1,476.70 68681 11/13/2012 002187 DUNN-EDWARDS CORP.2018157354 Red Curb Paint Supplies 10-450-245-000-000 45.58 Total : 45.58 68682 11/13/2012 011061 EZ SUNNYDAY LANDSCAPE 2015 October Park Maintenance 10-450-255-000-000 3,165.00 Total : 3,165.00 68683 11/13/2012 002740 FRUIT GROWERS SUPPLY 91116719 Miant Supplies-Spraying Round Up 10-450-245-000-000 151.37 6Page: 3.F.a Packet Pg. 46 At t a c h m e n t : C h e c k R e g i s t e r ( 1 1 6 9 : C h e c k R e g i s t e r N o . 1 1 - 1 3 - 2 0 1 2 ) 11/07/2012 Voucher List CITY OF GRAND TERRACE 7 4:21:47PM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68683 11/13/2012 (Continued)002740 FRUIT GROWERS SUPPLY 91122068 Maint Supplies 10-450-245-000-000 45.07 Total : 196.44 68684 11/13/2012 002901 G.T. AREA CHAMBER OF COMMERCE 7103-RDA OCTOBER CONSULTANT SRVS 32-370-255-000-000 860.00 Total : 860.00 68685 11/13/2012 002795 GARCIA, LEE ANN Nov 2012 Nov Health Ins Reimbursement-L. Garcia 10-110-142-000-000 439.25 Total : 439.25 68686 11/13/2012 002930 GRAINGER 9912428381 Breaker Box Cover for EOC 10-808-246-000-000 31.52 Total : 31.52 68687 11/13/2012 011180 HAYES, GENE E.11-12 Mar-May Health Ins Reim-Hayes 10-110-142-000-000 675.00 Jul-Sept 2012 Jul-Sep Health Ins Reim-Hayes 10-110-142-000-000 495.00 Total : 1,170.00 68688 11/13/2012 010632 HIGH TECH SECURITY SYSTEMS 102358 December Security Camera Monitoring 10-450-246-000-000 60.00 10-195-247-000-000 20.00 Total : 80.00 68689 11/13/2012 003171 HINDERLITER de LLAMAS & ASSOC.0019669-IN 1st Qtr Sales Tax Services 10-140-250-000-000 975.00 0020007-IN 2nd Qtr Sales Tax Services 10-140-250-000-000 975.86 Total : 1,950.86 68690 11/13/2012 003216 HOUSTON & HARRIS PCS, INC.12-17365 Hydro-wash Sewer Lines & Storm Drain 21-573-602-000-000 4,957.80 Total : 4,957.80 7Page: 3.F.a Packet Pg. 47 At t a c h m e n t : C h e c k R e g i s t e r ( 1 1 6 9 : C h e c k R e g i s t e r N o . 1 1 - 1 3 - 2 0 1 2 ) 11/07/2012 Voucher List CITY OF GRAND TERRACE 8 4:21:47PM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68691 11/13/2012 011211 JAN-PRO CLEANING SYSTEMS 33346 October Janitorial Services 10-195-245-000-000 641.00 10-450-245-000-000 334.00 Total : 975.00 68692 11/13/2012 010773 KELLAR SWEEPING INC.7284 October Street Sweeping 16-900-254-000-000 4,200.00 Total : 4,200.00 68693 11/13/2012 011158 L-1 ENROLLMENT SERVICES 360910764 July Fingerprints-J. Camarillo 09-440-228-000-000 90.00 Total : 90.00 68694 11/13/2012 010611 MCNABOE, DARCY Nov 2012 Nov Health Ins Reim-McNaboe 10-110-142-000-000 317.00 Total : 317.00 68695 11/13/2012 010097 NEXTEL COMMUNICATIONS 410575025-122 Sep/Oct Wireless Svc-Maint/C.Care 10-175-240-000-000 171.02 09-440-235-000-000 16.96 Total : 187.98 68696 11/13/2012 005400 OFFICE DEPOT 629035384001 Office Supplies 10-370-210-000-000 59.24 629053112001 Office Supplies 10-140-210-000-000 175.93 629053112002 Office Supplies 10-140-210-000-000 20.46 630074327001 Office Supplies 10-140-210-000-000 142.12 10-125-210-000-000 17.89 Total : 415.64 68697 11/13/2012 005586 PETTY CASH 11012012 Replenish C.Care Petty Cash 8Page: 3.F.a Packet Pg. 48 At t a c h m e n t : C h e c k R e g i s t e r ( 1 1 6 9 : C h e c k R e g i s t e r N o . 1 1 - 1 3 - 2 0 1 2 ) 11/07/2012 Voucher List CITY OF GRAND TERRACE 9 4:21:47PM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68697 11/13/2012 (Continued)005586 PETTY CASH 09-440-223-000-000 87.81 09-440-272-000-000 16.99 09-440-228-000-000 49.80 09-440-220-000-000 22.11 Total : 176.71 68698 11/13/2012 011245 RAQUEL'S CLEANING SERVICE 0000004 OCTOBER C. CARE CLEANING SERVICES 09-440-244-000-000 1,000.00 Total : 1,000.00 68699 11/13/2012 011074 REDFLEX TRAFFIC SYSTEMS RTS 0000503 August Contract Services 17-900-255-000-000 3,275.38 RTS TERMMON1 September Contract Services 17-900-255-000-000 2,981.61 Total : 6,256.99 68700 11/13/2012 010171 SIEMENS INDUSTRY INC 400087012 Sept Response Call Outs & Repairs 16-510-255-000-000 1,569.60 400087013 September QuikNet Maint 16-510-255-000-000 455.00 Total : 2,024.60 68701 11/13/2012 006310 ROADRUNNER SELF STORAGE INC.15076 OCTOBER STORAGE RENTAL 10-140-241-000-000 119.00 Total : 119.00 68702 11/13/2012 006335 ROQUET PAVING INC.1005-12c Grind/Overlay Various Locations on 16-900-257-000-000 4,825.00 Total : 4,825.00 68703 11/13/2012 006365 S & S WORLDWIDE 7503946 CHILD CARE SUPPLIES 09-440-228-000-000 81.28 09-440-228-000-000 0.92 Total : 82.20 68704 11/13/2012 006510 S.B. COUNTY INFORMATION 13873 September Pager Access 10-175-240-000-000 9.00 9Page: 3.F.a Packet Pg. 49 At t a c h m e n t : C h e c k R e g i s t e r ( 1 1 6 9 : C h e c k R e g i s t e r N o . 1 1 - 1 3 - 2 0 1 2 ) 11/07/2012 Voucher List CITY OF GRAND TERRACE 10 4:21:47PM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 9.00 68704 11/13/2012 006510 S.B. COUNTY INFORMATION 68705 11/13/2012 006531 S.B. COUNTY SHERIFF 11674 Sheriff's Service Specialist/COPS Credit 10-410-255-000-000 -307.97 10-410-256-000-000 -10,265.60 12206 2nd Qtr Expense/Overtime Charges 10-410-220-000-000 5,884.19 10-410-250-000-000 3,125.76 12207 Overtime Charges-GT High Football Game 10-410-250-000-000 415.85 12246 November Law Enforcement Services 10-410-255-000-000 3,924.00 10-410-256-000-000 131,743.00 14-411-256-000-000 8,333.00 Total : 142,852.23 68706 11/13/2012 006681 SMART & FINAL 3184620174448 TINY TOT CLEANING SUPPLIES 09-440-221-000-000 148.62 3184620178840 SCHOOL AGE SUPPLIES CHILD CARE 09-440-223-000-000 114.30 Total : 262.92 68707 11/13/2012 007005 SO CAL LOCKSMITH 21131 Keys for Rollins Park 10-450-245-000-000 48.44 21262 Keys for Building & Safety HR Room 10-195-245-000-000 4.85 Total : 53.29 68708 11/13/2012 011071 STANCKIEWITZ, W.Nov 2012 Nov Health Ins Reim-Stanckiewitz 10-110-142-000-000 439.25 Total : 439.25 68709 11/13/2012 006898 SYSCO FOOD SERVICES OF L.A.210160749 3 C. CARE FOOD/SUPPLIES 09-440-220-000-000 764.57 210230789 5 C. CARE FOOD/SUPPLIES 09-440-220-000-000 702.32 10Page: 3.F.a Packet Pg. 50 At t a c h m e n t : C h e c k R e g i s t e r ( 1 1 6 9 : C h e c k R e g i s t e r N o . 1 1 - 1 3 - 2 0 1 2 ) 11/07/2012 Voucher List CITY OF GRAND TERRACE 11 4:21:47PM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68709 11/13/2012 (Continued)006898 SYSCO FOOD SERVICES OF L.A. 210250165 3 Return Item 09-440-220-000-000 -53.50 210300715 5 C. CARE FOOD/SUPPLIES 09-440-220-000-000 762.36 Total : 2,175.75 68710 11/13/2012 010316 TEACHERS' DISCOUNT 208109395907 CHILD CARE SUPPLIES 09-440-228-000-000 58.28 09-440-228-000-000 4.52 Total : 62.80 68711 11/13/2012 011250 TIME FOR CHANGE FOUNDATION 10292012 CDBG Sep Inv. Case #106-38127/3876 22-425-309-000-000 1,000.00 Total : 1,000.00 68712 11/13/2012 007034 TRANSPORTATION ENGINEERING 1245 September Traffic Engineering Services 10-175-250-000-000 1,755.00 Total : 1,755.00 68713 11/13/2012 007220 UNDERGROUND SERVICE ALERT 1020120290 October Dig Alert Tickets 16-900-220-000-000 54.00 Total : 54.00 68714 11/13/2012 007399 US BANK TRUST NAT'L ASSOC.3179042 CRA AB Escrow Accounts 33-300-210-000-000 862.50 3182265 CRA TAB 2011AB Trustee Fee 33-300-210-000-000 2,500.00 3222297 CRA TAB Series 1993 A & B Trustee Fee 33-300-210-000-000 550.00 3223572 Custoday Account Fee-Escrow Accounts 33-300-210-000-000 1,000.00 Total : 4,912.50 68715 11/13/2012 007920 WILLDAN 002-12696 Sept Plan Review & Inspection Services 10-172-250-000-000 2,530.00 11Page: 3.F.a Packet Pg. 51 At t a c h m e n t : C h e c k R e g i s t e r ( 1 1 6 9 : C h e c k R e g i s t e r N o . 1 1 - 1 3 - 2 0 1 2 ) 11/07/2012 Voucher List CITY OF GRAND TERRACE 12 4:21:47PM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68715 11/13/2012 (Continued)007920 WILLDAN 002-12697 September Engineering Services 10-175-255-000-000 900.00 00411459 Sept Walgreens Inspections 10-175-255-000-000 3,420.00 Total : 6,850.00 68716 11/13/2012 007987 XEROX CORPORATION 063341110 Aug Xerox Lease CC265H Copier 10-190-700-000-000 291.63 Total : 291.63 68717 11/13/2012 007987 XEROX CORPORATION 064455135 Xerox CC265H Finall Copy Charges 10-190-212-000-000 66.48 Total : 66.48 Bank total : 335,748.07 76 Vouchers for bank code :bofa 335,748.07Total vouchers :Vouchers in this report 76 12Page: 3.F.a Packet Pg. 52 At t a c h m e n t : C h e c k R e g i s t e r ( 1 1 6 9 : C h e c k R e g i s t e r N o . 1 1 - 1 3 - 2 0 1 2 ) City of Grand Terrace Check Register Index FD No.Fund Name Dept No.Department Name General Account Numbers 09 CHILD CARE FUND 110 CITY COUNCIL 110 SALARIES/WAGES 10 GENERAL FUND 120 CITY MANAGER 139 EMPLOYEES' BENEFIT PLAN 11 STREET FUND 125 CITY CLERK 140 RETIREMENT 12 STORM DRAIN FUND 140 FINANCE 142 HEALTH/LIFE INSURANCE 13 PARK FUND 160 CITY ATTORNEY 143 WORKERS' COMPENSATION 14 AB 3229 COPS FUND 172 BUILDING & SAFETY 138/141 MEDICARE / SUI 15 AIR QUALITY IMPROVEMENT FUND 175 PUBLIC WORKS 210 OFFICE EXPENSE 16 GAS TAX FUND 180 COMMUNITY EVENTS 218-219 NON-CAPITAL FURN/SMALL TOOLS 17 TRAFFIC SAFETY FUND/ TDA FUND 185 RENTAL INSPECTION PROGRAM 220 SPECIAL DEPARTMENTAL EXP 19 FACILITIES DEVELOPMENT FUND 187 ENFORCEMENT PROGRAM 230 ADVERTISING 20 MEASURE I FUND 190 GENERAL GOVERNMENT (NON-DEPT) 235 COMMUNICATIONS 21 WASTE WATER DISPOSAL FUND 195 FACILITIES MAINTENANCE 238-239 UTILITIES 22 COMMUNITY DEVELOPMENT BLOCK GRANT 370 COMMUNITY & ECONOMIC DEV 240-242 RENTS & LEASES 26 LSCPG/ LGHTG ASSESSMENT DIST. 380 MGT INFORMATION SYSTEMS 245-246 MAINT BLDG GRNDS EQUIPMNT 44 BIKE LANE CAPITAL FUND 410 LAW ENFORCEMENT 250-251 PROFESSIONAL SERVICES 46 STREET IMPROVEMENT PROJECTS 430 RECREATION SERVICES 255-256 CONTRACTUAL SERVICES 47 BARTON RD. BRIDGE PROJECT 440 CHILD CARE 260 INSURANCE & SURETY BONDS 32 CRA-CAPITAL PROJECTS FUND 450 PARKS MAINTENANCE 265 MEMBERSHIPS & DUES 33 CRA-DEBT SERVICE FUND 631 STORM DRAIN MAINTENANCE 268 TRAINING 34 CRA-LOW & MOD HOUSING 801 PLANNING COMMISSION 270 TRAVEL/CONFERENCES/MTGS 802 CRIME PREVENTION UNIT 272 FUEL & VEHICLE MAINTENANCE 804 HISTORICAL & CULTURAL COMM. 570 WASTEWATER TREATMENT 805 SENIOR CITIZENS PROGRAM 33-300 DEBT SERVICE 807 PARKS & REC COMMITTEE 7XX FACILITIES IMPRV (NO CIP) 808 EMERGENCY OPERATIONS PROG. 700 COMPUTER-RELATED 701 VEHICLES & EQUIPMENT 3. F . b Pa c k e t P g . 5 3 Attachment: Check Register Account Index (1169 : Check Register No. 11-13-2012) AGENDA REPORT MEETING DATE:November 13, 2012 Council Item TITLE:Contract Amendment with California Public Employees' Retirement System (CalPERS) to Establish Second Tier Retirement Benefit for Future Employees PRESENTED BY:Betsy Adams, City Manager RECOMMENDATION:Adopt Ordinance to amend City's contract with CalPERS for employee retirement benefits for future employees. BACKGROUND: On October 23, 2012, the City Council adopted a Resolution of Intention to approve an amendment to the contract with CalPERS for employee retirement benefits for future employees and also introduced a corresponding Ordinance. Subsequent to this Council Meeting a summary of the Ordinance was published in the City News. DISCUSSION: Assembly Bill (AB) 340, the Public Employees' Pension Reform Act of 2013, established new retirement formulas for employees who first become eligible to earn CalPERS retirement benefits on or after January 1, 2013. For the City, these employees would receive a retirement benefit of 2% at age 62 based on a three year average compensation period. Employees hired by the City on or after January 1, 2013 who are already members of CalPERS (e.g. hired from another public agency which contracts with CalPERS for retirement benefits) would receive the City's existing retirement benefit of 2.7% at age 55 single year compensation period instead of the retirement benefit established by AB 340 unless a second tier retirement benefit is established by December 31, 2012. To provide a more consistent retirement benefit to future employees, and to achieve additional future savings, the Council introduced an Ordinance to amend the City's contract with CalPERS to add a second tier retirement benefit prior to January 1, 2013, when the option to do so ceases to exist. The 2% at age 60 three year average compensation retirement benefit is the existing CalPERS benefit closest to the 2% at age 62 three year average compensation retirement benefit established by AB 340. FISCAL IMPACT: As the City hires employees in the future there will be savings in retirement benefits costs. Newly hired employees who are existing members of CalPERS will receive the second tier retirement benefit of 2% at age 60 established by the Ordinance. Newly hired employees who are not existing members of CalPERS will receive the AB 340 established retirement benefit of 2% at age 62. 7.A Packet Pg. 54 ATTACHMENTS: ·Ordinance CalPERS 2012 ·Ordinance Exhibit A APPROVALS: Betsy Adams Completed 11/06/2012 8:00 AM Finance Completed 11/06/2012 9:26 AM City Attorney Completed 11/06/2012 2:30 PM City Manager Completed 11/06/2012 3:52 PM City Council Pending 7.A Packet Pg. 55 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES HEREBY ORDAIN AS FOLLOWS: Section 1. That an amendment to the contract between the City Council of the City of Grand Terrace and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit A, and by such reference made a part hereof as though herein set out in full. Section 2. The Mayor of the City Council is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. Section 3. This Ordinance shall take effect 30 days after the date of its adoption, and prior to the expiration of 10 days from the passage thereof shall be published at least once in the Grand Terrace City News, a newspaper of general circulation, published and circulated in Grand Terrace and thenceforth and thereafter the same shall be in full force and effect. First introduced at a regular meeting of the City Council of said City held on the 23rd day of October, 2012, and finally adopted and ordered posted at a regular meeting of said City Council on the 13th day of November 2012. ATTEST: City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace and and of the City Council thereof.of the City Council thereof. 7.A.a Packet Pg. 56 At t a c h m e n t : O r d i n a n c e C a l P E R S 2 0 1 2 ( 1 1 6 6 : C a l P E R S C o n t r a c t A m e n d m e n t - 2 % @ 6 0 ) ORDINANCE NO. Page 2 I, Tracey Martinez, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Ordinance was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 13th day of November, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk Approved as to form: City Attorney 7.A.a Packet Pg. 57 At t a c h m e n t : O r d i n a n c e C a l P E R S 2 0 1 2 ( 1 1 6 6 : C a l P E R S C o n t r a c t A m e n d m e n t - 2 % @ 6 0 ) c EXHIBIT California Public Employees’ Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees’ Retirement System and the City Council City of Grand Terrace The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective January 20, 1990, and witnessed December 14, 1989, and as amended effective October 23, 1995, May 26, 2000, August 28, 2004 and September 23, 2006 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective September 23, 2006, and hereby replaced by the following paragraphs numbered 1 through 14 inclusive: 1. All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age” shall mean age 55 for local miscellaneous members entering membership in the miscellaneous classification on or prior to the effective date of this amendment to contract and age 60 for local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract. 7.A.b Packet Pg. 58 At t a c h m e n t : O r d i n a n c e E x h i b i t A ( 1 1 6 6 : C a l P E R S C o n t r a c t A m e n d m e n t - 2 % @ 6 0 ) 2. Public Agency shall participate in the Public Employees' Retirement System from and after January 20, 1990 making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency. 3. Public Agency agrees to indemnify, defend and hold harmless the California Public Employees’ Retirement System (CalPERS) and its trustees, agents and employees, the CalPERS Board of Administration, and the California Public Employees’ Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorneys fees that may arise as a result of any of the following: (a) Public Agency’s election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided under the Public Agency’s prior non-CalPERS retirement program. (b) Public Agency’s election to amend this Contract to provide retirement benefits, provisions or formulas that are different than existing retirement benefits, provisions or formulas. (c) Public Agency’s agreement with a third party other than CalPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided under this Contract and provided for under the California Public Employees’ Retirement Law. (d) Public Agency’s election to file for bankruptcy under Chapter 9 (commencing with section 901) of Title 11 of the United States Bankruptcy Code and/or Public Agency’s election to reject this Contract with the CalPERS Board of Administration pursuant to section 365, of Title 11, of the United States Bankruptcy Code or any similar provision of law. (e) Public Agency’s election to assign this Contract without the prior written consent of the CalPERS’ Board of Administration. (f) The termination of this Contract either voluntarily by request of Public Agency or involuntarily pursuant to the Public Employees’ Retirement Law. 7.A.b Packet Pg. 59 At t a c h m e n t : O r d i n a n c e E x h i b i t A ( 1 1 6 6 : C a l P E R S C o n t r a c t A m e n d m e n t - 2 % @ 6 0 ) (g) Changes sponsored by Public Agency in existing retirement benefits, provisions or formulas made as a result of amendments, additions or deletions to California statute or to the California Constitution. 4. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: a. Employees other than local safety members (herein referred to as local miscellaneous members). 5. In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: a. SAFETY EMPLOYEES; AND b. ELECTED OFFICIALS. 6. Assets heretofore accumulated with respect to members in the local retirement system have been transferred to the Public Employees' Retirement System and applied against the liability for prior service incurred thereunder. That portion of the assets so transferred which represent the accumulated contributions (plus interest thereof) required of the employees under said local system has been credited to the individual membership account of each such employee under the Public Employees' Retirement System. 7. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member in employment before and not on or after September 23, 2006 shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 8. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member in employment on or after September 23, 2006 and not entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract shall be determined in accordance with Section 21354.5 of said Retirement Law (2.7% at age 55 Full). 9. The percentage of final compensation to be provided for each year of credited current service as a local miscellaneous member entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract shall be determined in accordance with Section 21353 of said Retirement Law (2% at age 60 Full). 7.A.b Packet Pg. 60 At t a c h m e n t : O r d i n a n c e E x h i b i t A ( 1 1 6 6 : C a l P E R S C o n t r a c t A m e n d m e n t - 2 % @ 6 0 ) 10. Public Agency elected and elects to be subject to the following optional provisions: a. Section 20938 (Limit Prior Service to Members Employed on Contract Date). b. Section 21536 (Local System Service Credit Included in Basic Death Benefit). c. Section 20042 (One-Year Final Compensation) for local miscellaneous members entering membership on or prior to the effective date of this amendment to contract. d. Section 21024 (Military Service Credit as Public Service). e. Section 21574 (Fourth Level of 1959 Survivor Benefits). f. Section 20475 (Different Level of Benefits). Section 21353 (2% @ 60 Full formula) and Section 20037 (Three-Year Final Compensation) are applicable to local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract. 11. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members of said Retirement System. 12. Public Agency shall also contribute to said Retirement System as follows: a. Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21574 of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of all local miscellaneous members. b. A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law. c. A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law. 7.A.b Packet Pg. 61 At t a c h m e n t : O r d i n a n c e E x h i b i t A ( 1 1 6 6 : C a l P E R S C o n t r a c t A m e n d m e n t - 2 % @ 6 0 ) 13. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. 14. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board. B. This amendment shall be effective on the _____ day of _______________, ______. BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES’ RETIREMENT SYSTEM CITY OF GRAND TERRACE BY____________________________________ BY______________________________ KAREN DE FRANK, CHIEF PRESIDING OFFICER CUSTOMER ACCOUNT SERVICES DIVISION PUBLIC EMPLOYEES’ RETIREMENT SYSTEM ________________________________ Witness Date Attest: ________________________________ Clerk AMENDMENT CalPERS ID #5139528223 PERS-CON-702A 7.A.b Packet Pg. 62 At t a c h m e n t : O r d i n a n c e E x h i b i t A ( 1 1 6 6 : C a l P E R S C o n t r a c t A m e n d m e n t - 2 % @ 6 0 ) AGENDA REPORT MEETING DATE:November 13, 2012 Successor Agency Item TITLE:Memorandum of Understanding Between San Bernardino Associated Governments and City of Grand Terrace for Participation in the Property Assessed Clean Energy (PACE) Program PRESENTED BY:Sandra Molina, Community Development Deputy Director RECOMMENDATION:Adopt a Resolution approving the Memorandum of Understanding for participation in the regional PACE Program. BACKGROUND: In 2008 and 2009 the California legislature passed Assembly Bills 811 and 474, respectively, with the intent to find ways to improve the energy and water efficiency of existing residential and commercial structures by providing loans to property owners that could be paid back over time through property assessments. In 2011, San Bernardino Associated Governments (SANBAG) directed SANBAG staff to create a regional energy efficiency and water conservation loan program, referred to as a Property Assessed Clean Energy (PACE) Program. Riverside and Los Angeles Counties already have PACE programs in place. SANBAG has secured $200 Million through private firms for the implementation of a regional PACE Program and has assembled a PACE Program Team made up of legal and financial advisors, and funding members. SANBAG is asking their member agencies to opt-in to the PACE Program by approving the attached Memorandum of Understanding (MOU). SANBAG will administer all aspects of the PACE Program, and there is no obligation, financial or otherwise, to the City. By opting-in,residential and commercial property owners within our City would be able to participate in the PACE Program. A Fact Sheet for the Program is also attached. DISCUSSION: The PACE Program would allow SANBAG and Grand Terrace property owners to enter into a contractual agreement to finance the installation of eligible renewable energy, energy efficiency or water efficiency improvements that are permanently affixed to the property. The loan, including interest, is paid back through an assessment on the property tax bill, and the term of the loan can be from 5 to 20 years. Eligible improvements include: • Air sealing and weatherization • Solar thermal water heating • Insulation • Small wind turbines • Cool roof systems • High efficiency toilets and shower heads 8.A Packet Pg. 63 • Duct sealing • Weather based irrigation control systems • High efficiency heat and air conditioning • Drip irrigation • Attic fans and whole house fans • Gray water systems • High efficiency and tank-less water heaters • Commercial light fixture replacements • Weatherized doors, windows and window film • Commercial boiler improvements • High efficiency pool pumps and heaters • Commercial refrigeration improvements • Solar photovoltaic systems There are economic and environmental benefits to both property owner and the community associated with the Program. Such as lower utility bills, increase property values, investment in the local economy, lower greenhouse gas emissions, and water conservation. SANBAG will hold contractor orientation workshops to teach contractors on how the PACE Program works, and any state licensed contractor can participate. Property owners can choose any state-licensed contractor, and like any other property improvement; they should obtain cost estimates to secure the best price, as prices may vary between contractors. This is a great Program for property owners within our City as it provides a mechanism for funding “green” improvements, with no out of pocket costs to the property owner (SANBAG pays the contractor directly). It’s also a great Program for smaller cities, such as Grand Terrace, who may not have the staff resources to develop, implement, or administer one on their own. Therefore, staff recommends City Council approval of the MOU. FISCAL IMPACT: No fiscal impact to the City will occur. ATTACHMENTS: ·Attachment 1 Resolution and PACE MOU ·Attachment 2 PACE Fact Sheet APPROVALS: Sandra Molina Completed 11/01/2012 2:36 PM Finance Skipped 11/01/2012 2:29 PM City Attorney Completed 11/05/2012 3:08 PM Community Development Completed 11/05/2012 3:29 PM City Manager Completed 11/05/2012 4:36 PM City Council Pending 8.A Packet Pg. 64 RESOLUTION NO. 12- A RESOLUTION OF THE CITY COUNCIL APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF GRAND TERRACE AND SAN BERNARDINO ASSOCIATED GOVERNMENTS TO PARTICIPATE IN THE PROPERTY ASSESSMENT CLEAN ENERGY (PACE) PROGRAM WHEREAS, the City of Grand Terrace, along with the County of San Bernardino and various cities within such county have entered into an "Amended Memorandum of Understanding for the Joint Exercise of Powers Relative to the San Bernardino Associated Governments" last amended October 17, 1975 (the "JPA"), to create SANBAG; and WHEREAS, the purpose of the JPA is to improve and coordinate governmental services on a countywide, subregional and regional basis through the establishment of SANBAG as a cooperative association of governments; and WHEREAS, Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.12) ("Chapler 29") permits cities and counties to establish contractual assessment programs to finance the installation of distributed generation renewable energy sources, energy or water efficiency improvements or electric vehicle charging infrastructure that are permanently fixed to residential, commercial, industrial, agricultural, or other real property; and WHEREAS, the parties to the JPA, as cities and counties, have the common power to implement and administer contractual assessment programs pursuant to Chapter 29 which programs are commonly referred to as a properly assessed clean energy (the "PACE Program") to finance installation of such improvements within their respective jurisdictions; and WHEREAS, Grand Terrace and SANBAG believe that the establishment by SANBAG of a single, countywide PACE Program would improve and coordinate the provision of such a PACE Program within the jurisdictions of Grand Terrace and SANBAG and Grand Terrace desire to enter into this MOU in order to authorize SANBAG to implement and administer such a PACE Program on behalf of Grand Terrace. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Grand Terrace: 1. The City Council hereby approves the attached Memorandum of Understanding authorizing SANBAG to implement and administer such a PACE Program on behalf of City of Grand Terrace. 2. The City Clerk shall certify to the adoption of this resolution. Page 1 of 2 8.A.a Packet Pg. 65 At t a c h m e n t : A t t a c h m e n t 1 R e s o l u t i o n a n d P A C E M O U ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) Page 2 of 2 PASSED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 13th of November, 2012. AYES: NOES: ABSENT: ABSTAIN: ATTEST: __________________________ __________________________ Tracey Martinez Walt Stanckiewitz City Clerk Mayor Approved as to form: __________________________ City Attorney 8.A.a Packet Pg. 66 At t a c h m e n t : A t t a c h m e n t 1 R e s o l u t i o n a n d P A C E M O U ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) CONTRACT NO: C13066 By and Between San Bernardino Associated Governments (SANBAG) And CITIES OF ADELANTO, BARSTOW, BIG BEAR LAKE, CHINO, CIDNO HILLS, COLTON, FONTANA, GRAND TERRACE, HESPERIA, HIGHLAND, LOMA LINDA, MONTCLAIR, NEEDLES, ONTARIO, RANCHO CUCAMONGA, REDLANDS, RIALTO, SAN BERNARDINO, TWENTYNINE PALMS, UPLAND, VICTORVILLE, YUCAIPA, AND THE TOWNS OF APPLE VALLEY AND YUCCA VALLEY, AND THE COUNTY OF SAN BERNARDINO C13067 For Implementation of a Property Assessed Clean Energy Program (PACE) To Finance the Installation of Distributed Generation Renewable Energy Sources, Energy or Water Efficiency Improvements or Electric Vehicle Charging Infrastructure Property Assessed Clean Energy Program (PACE) Page I 8.A.a Packet Pg. 67 At t a c h m e n t : A t t a c h m e n t 1 R e s o l u t i o n a n d P A C E M O U ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) CONTRACT NO. C13066 MEMORANDUM OF UNDERSTANDING BY AND AMONG THE SAN BERNARDINO ASSOCIATED GOVERNMENTS AND CITIES OF ADELANTO, BARSTOW, BIG BEAR LAKE, CHINO, CHINO HILLS, COLTON, FONTANA, GRAND TERRACE, HESPERIA, HIGHI_AND, LOMA LINDA, MONTCLAIR, NEEDLES, ONTARIO, RANCHO CUCAMONGA, REDLANDS, RIALTO, SAN BERNARDINO, TWENTYNINE PALMS, UPLAND, VICTORVILLE, YUCAIPA, AND TOWNS OF APPLE VALLEY AND YUCCA V ALLEY AND THE COUNTY OF SAN BERNARDINO FOR IMPLEMENTATION OF A PROPERTY ASSESSED CLEAN ENERGY PROGRAM (PACE) TO FINANCE THE INSTALLATION OF DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY OR WATER EFFICIENCY IMPROVEMENTS OR ELECTRIC VEHICLE CHARGING INFRASTRUCTURE This Memorandum of Understanding ("MOU") is entered into as of January 9, 2013 between the SAN BERNARDINO ASSOCIATED GOVERNMENTS ("SANBAG"). a joint powers authority formed under Government Code sections 6500 et seq., and the City of Adelanto ("Participating Entities"), each a general law or charter cit y or a county formed under the Constitution and the laws of the State of California. SANBAG and the Participating Entities are sometimes collectively referred to in this MOU as the "Parties" or individually as a "Party." RECITALS WHEREAS, the County of San Bernardino and vari ous ci ties within such county have entered into an "Amended Memorandum of Understanding for the Joint Exercise of Powers Relative to the San Bernardino Associated Governments" last amended October 17. 1975 (the "JPA"). to create SANBAG; and WHEREAS, Participating Entities are each signatories to the JPA; and WHEREAS, the purpose of the JPA is to improve and coordinate governmental services on a countywide, subregional and regional basis through the establishment of SANBAG as a cooperative association of governm ents; and Cl3067 Property Assessed Clean Energy Program (PACE) Page 2 8.A.a Packet Pg. 68 At t a c h m e n t : A t t a c h m e n t 1 R e s o l u t i o n a n d P A C E M O U ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) WHEREAS, Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.12) ("Chapter 29") permits cities and counties to establish contractual assessment programs to finance the installation of distributed gcneration renewable energy sources, energy or water efficiency improvements or electric vehicle charging infrastructure that are permanently fixed to residential, commercial, industrial, agricultural, or other real property; and WHEREAS, the parties to the IPA, as cities and counties, have the common power to implement and administer contractual assessment programs pursuant to Chapter 29 which programs are commonly referred to as a property assessed clean energy (the "PACE Program") to finance installation of such improvements within their respective jurisdictions; and WHEREAS, SANBAG and Participating Entities believe that the establishment by SANBAG of a single, countywide PACE Program would improve and coordinate the provision of such a PACE Program within the jurisdictions of Participating Entities and SANBAG and Participating Entities desire to cnter into this MOU in order to authorize SANBAG to implement and administer such a PACE Program on behalf of Participating Entities. NOW, THEREFORE, it is mutually understood and agreed by SANBAG and the Participating Entities as follows: AGREEMENT Section 1: Establishing the PACE Program SANBAG will undertake proceedings pursuant to Chapter 29 to establish a PACE Program to make such contractual assessment financing available to eligible property owners within the jurisdictional boundaries of Participating Entities. Section 2: Establishing Eligible Improvements SANBAG shall identify the kinds of distributed generation renewable energy sources, energy or water efficiency improvements or electric vehicle charging infrastructure that may be financed ("Eligible Improvements") under the PACE Program. Section 3: Boundary of Program SANBAG, in coordination with Participating Entities, shall describe the boundaries of the area within which contractual assessments under the PACE Program may be entered into, which may include the entire jurisdictional area of each of the Participating Entities or a lesser portion thereof. Section 4: Financing the Installation of Eligible Improvements SANBAG shall develop and implement a plan for the financing of the purchase and installation of the Eligible Improvements under the PACE Program. C13067 Property Assessed Clean Energy Program (PACE) Page 3 8.A.a Packet Pg. 69 At t a c h m e n t : A t t a c h m e n t 1 R e s o l u t i o n a n d P A C E M O U ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) Section 5: Ongoing Administration SANBAG shall be responsible for the ongoing administration of the PACE Program, including but not limited to producing education plans to raise public awareness of the PACE Program, soliciting. reviewing and approving applications from property owners who freely and willingly consent to participate in the PACE Program, establishing assessment contracts for property owners participating in the PACE Program, establishing and collecting assessments due under the PACE Program, and providing reports as required by Chapter 29. The PACE Program will be administered in accordance with the JPA. Section 6: Phased Implementation The Parties recognize and agree that implementation of the PACE Program as a whole can and may be phased as other parties to the JPA elect to enter into the MOU. The Participating Entities entering into this MOU will obtain the benefits of and incur the obligations imposed by this MOU in its jurisdictional area, irrespective of whether other parties to the JPA enter into the MOU. Section 7: Term The term of this MOU shall be for twenty (20) years unless modified or extended pursuant to this MOU. Section 8: Termination Upon ninety (90) days written notice, a Participating Entity may terminate its participati on in the PACE Program through this MOU. Section 9: Environmental Review SANBAG shall be the lead agenc y under the California Environmental Quality Act for any environmental review that may be equired in implementing or administering the PACE Program under this MOU. Section 10: Cooperative Effort Participating Entities shall cooperate with SANBAG by providing information and other assistance in order for SANBAG to meet its obligations hereunder. Participating Entities recognize that one of their responsibilities related to the PACE Program will include any permitting or in spection requirements as established by the Participating Entities pertaining to the installation of Eligible Improvements within their respective jurisdictions. Section 11: Miscellaneous Provisions 1l.1 Notice. Any and all communications and/or notices in connection with this MOU shall be either hand-delivered or sent by United States first class mail, postage prepaid, and CJ3067 Property Assessed Clean Energy Program (PACE) Page 4 8.A.a Packet Pg. 70 At t a c h m e n t : A t t a c h m e n t 1 R e s o l u t i o n a n d P A C E M O U ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) addressed to the respective Parties at the addresses set forth In Exhibit A attached hereto and incorporated herein by this reference: 11.2 Entire MOU. This MOU, together with the IPA, constitutes the entire agreement among the Parties regarding the subject matter of thi s MOU. This MOU supersedes any and all other agreements. either oral or in writing, among the Parties with respect to the subject matter hereof and contains all of the covenants and agreements among them with respect to said matters , and each Party acknowledges that no representation, inducement, promise of agreement, oral or otherwise, has been made by the other Party or anyone acting on behalf of th e other Party that is not embodied herein. 11 .3 Successors and Assigns. This MOU and each of its covenants and conditions shall be binding on and shall inure to the benefit of the Parties and their respective successors and assigns. A Party may only assign or transfer its rights and obligations under this MOU with prior written approval of the other Parties, which approval shall not be unreasonably withheld. 11.4 Attorney's Fees. If any action at law or equity, including any action for declaratory relief is brought to enforce or interpret the provisions of this MOU, each Party to the litigation shall bear its own attorney's fees and costs. 11.5 Governing Law. This MOU shall be governed by and construed in accordance with the laws of the State of California, as applicable. 11 .6 No Third Party Beneficiaries. This MOV shall not create an y right or interest in the public, or any member thereof, as a third party beneficiary hereof, nor shall it authorize anyone not a Party to thi s MOV to maintain a suit for personal injuries or property damages under the provisions of this MOV. The duties, obligations, and responsib ilities of the Parties to this MOU with respect to third party benefi ciaries shall remain as imposed under existing state and federal Jaw. 11.7 Severability. In the event one or more of the provisions contained in this MOU is held invalid, illegal or unenforceable by any court of competent jurisdiction, such portion shall be deemed severed from this MOU and the remaining parts of thi s MOU shall remain in full force and effect as though such invalid, illegal, or unenforceable portion had never been a part of this MOV. 11 .8 Headings. The paragraph headings used in this MOV are for the convenience of the Parties and are not intended to be used as an aid to interpretation. 11 .9 Amendment. No amendment, modification. alteration or variation of the terms of this MOU shall be valid unless made in writing and Signed by the Parties hereto and no oral understanding or agreement pertaining to the subject matter of this MOU and not incorporated herein shall be binding on any of the Parties hereto. (S ignature pages to follow) CI3067 Property Assessed Clean Energy Program (PACE) Page 5 8.A.a Packet Pg. 71 At t a c h m e n t : A t t a c h m e n t 1 R e s o l u t i o n a n d P A C E M O U ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) IN WITNESS WHEREOF, THE PARTIES HERETO have executed (his MOU to be in effect as of the date last signed below. SAN BERNARDINO ASSOCIATED GOVERNMENTS ("SANBAG") By: Janice Rutherford SANBAG President APPROVED AS TO FORM: By: Eileen Monaghan Teichert General Counsel CONCURRENCE: By: Jeffery Hill Contract AdministralOr PARTICfPATING ENTITIES Date: Date: C13067 Property Assessed Clean Energy Program (PACE) Page 6 8.A.a Packet Pg. 72 At t a c h m e n t : A t t a c h m e n t 1 R e s o l u t i o n a n d P A C E M O U ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) City of Grand Terrace Signature Page MEMORANDUM OF UNDERSTANDING Contract C13066 And CITIES OF ADELANTO, BARSTOW, BIG BEAR LAKE, CHINO, CHINO HILLS, COLTON, FONTANA, GRAND TERRACE, HESPERIA, HIGHLAND, LOMA LINDA, MONTCLAIR, NEEDLES, ONTARIO, RANCHO CUCAMONGA, REDLANDS, RIALTO, SAN BERNARDINO, TWENTYNINE PALMS, UPLAND, VICTORVILLE, YUCAIPA, AND THE TOWNS OF APPLE V ALLEY AND YUCCA V ALLEY, AND THE COUNTY OF SAN BERNARDINO For Implementation of a Property Assessed Clean Energy Program (PACE) to Finance the Installation of Distributed Generation Renewable Energy Sources, Energy of Water Efficiency Improvements or Electric Vehicle Charging Infrastructure. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year herein written below: CITY OF GRAND TERRACE: By: Date: APPROVED AS TO FORM: By: Date: C 13067 Property Assessed Clean Energy Program (PACE) Page 14 8.A.a Packet Pg. 73 At t a c h m e n t : A t t a c h m e n t 1 R e s o l u t i o n a n d P A C E M O U ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) EXHIBIT A NOTICE ADDRESSES FOR THE PARTIES C13067 Property Assessed Clean Energy Program (PACE) Page 1 8.A.a Packet Pg. 74 At t a c h m e n t : A t t a c h m e n t 1 R e s o l u t i o n a n d P A C E M O U ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) C13067 ToSANBAG To City of Adelanto To Town of Apple Valley To City of Barstow To City of Big Bear Lake To City of Chino To City of Chino Hills To City of Colton To City of Fontana Executive Director San Bernardino Associated Governments 1170 W. 3rd Street, 2nd Floor San Bernardino,CA 92410-1715 James Hart City Manager P.O. Box 10 Adelanto, CA 9230 I Frank Robinson Town Manager Town of Apple Valley 14955 Dale Evans Parkway Apple Valley, CA 92307 Curt Mitchell City Manager City of Barstow 220 E. Mountain View Street, Suite A Barstow, CA 92311-2888 Jeff Mathieu City Manager City of Big Bear Lake P.O. Box 10000 Big Bear Lake, CA 92315-8900 Miles Pruitt City Manager City of Chino P.O. Box 667 Chino, CA 91708-0667 Michael Fleager City Manager City of Chino Hills 14000 City Center Drive Chino Hills, CA 91709 Rod Foster City Manager City of Colton 650 N. La Cadena Drive Colton, CA 92324 Ken Hunt City Manager City of Fontana 8353 Sierra Avenue Fontana, CA 92335 Property Assessed Clean Energy Program (PACE) Page 2 8.A.a Packet Pg. 75 At t a c h m e n t : A t t a c h m e n t 1 R e s o l u t i o n a n d P A C E M O U ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) C13067 To City of Grand Terrace To City of Hesperia To City of Highland To City of Lorna Linda To City of Montclair To City of Needles To City of Ontario To City of Rancho Cucamonga To City of Redlands Betsy Adams City Manager City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Mike Podegracz, P.E. City Manager City of Hesperia 9700 Seventh A venue Hesperia, CA 92345 Joseph Hughes City Manager City of Highland 27215 Base Line Highland, CA 92346 Jarh Thaipejr, P.E. City Manager City of Lorna Linda 25541 Barton Road Loma Linda, CA 92354 Edward Starr City Manager City of Montclair P.O. Box 2308 Montclair, CA 91763 David Brownlee Jr. City Manager City of Needles 817 Third Street Needles, CA 92363 Christopher Hughes City Manager City of Ontario 303 East B Street Ontario, CA 91764 John Gillison City Manager City of Rancho Cucamonga P.O. Box 807 Rancho Cucamonga, CA 91729 N. Enrique Martinez City Manager City of Redlands P.O. Box 3005 Redlands, CA 92373-1505 ProperlY Assessed Clean Energy Program (PACE) Page 3 8.A.a Packet Pg. 76 At t a c h m e n t : A t t a c h m e n t 1 R e s o l u t i o n a n d P A C E M O U ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) C13067 To City of Rialto To City of San Bernardino To City of Twentynine Palms To City of Victorville To City of Victorville To City of Yucaipa To Town of Yucca Valley Michael Story City Manager City of Rialto 150 South Palm Avenue Rialto, CA 92376 Andrea Travis-Miller City Manager City of San Bernardino 300 North "D" Street San Bernardino, CA 924 J 8 Richard Warne City Manager City of Twentynine Palms 6136 Adobe Road Twentynine Palms, CA 92277 Stephen Dunn City Manager City of Upland 460 N. Euclid Avenue P,O, Box 460 Upland, CA 91786 Doug Robertson City Manager City of Victorville P.O. Box 5001 Victorville, CA 92393-5001 Ray Casey City Manager City of Yucaipa 34272 Yucaipa Boulevard Yucaipa, CA 92399 Mark Nuaimi Town Manager Town of Yucca VaJ ley 5709029 Palms Highway Yucca Valley, CA 92284 Property Assessed Clean Energy Program (PACE) Page 4 8.A.a Packet Pg. 77 At t a c h m e n t : A t t a c h m e n t 1 R e s o l u t i o n a n d P A C E M O U ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) 8.A.b Packet Pg. 78 At t a c h m e n t : A t t a c h m e n t 2 P A C E F a c t S h e e t ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) 8.A.b Packet Pg. 79 At t a c h m e n t : A t t a c h m e n t 2 P A C E F a c t S h e e t ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) 8.A.b Packet Pg. 80 At t a c h m e n t : A t t a c h m e n t 2 P A C E F a c t S h e e t ( 1 1 6 0 : P a r t i c i p a t i o n i n t h e P r o p e r t y A s s e s s e d C l e a n E n e r g y ( P A C E ) P r o g r a m ) AGENDA REPORT MEETING DATE:November 13, 2012 Council & Successor Agency Item TITLE:Department of Finance Determination on Successor Agency's Recognized Obligation Payment Schedule for Period of January 1, 2013 through June 30, 2013 PRESENTED BY:Betsy Adams, City Manager RECOMMENDATION:Receive information on the Department of Finance (DOF) determination on Recognized Obligation Payment Schedule and Administrative Budget and on Successor Agency's Meet and Confer scheduled with DOF for November 15, 2012. BACKGROUND: The Successor Agency adopted the Recognized Obligation Payment Schedule and Administrative Budget for the Period of January 1, 2013 through June 30, 2013 (ROPS3) on July 24, 2012. The Oversight Board adopted the ROPS3 and Administrative Budget on August 22, 2012,without any changes,and it was submitted to the Department of Finance (DOF) for review on September 4, 2012. On October 19, 2012, the Successor Agency received the DOF determination on its ROPS 3 which is included as the first attachment to this staff report. On October 25, 2012, the Successor Agency submitted a Meet and Confer Request Form to the DOF on ROPS3 requesting an in-person meeting. The first 11 pages of this 199 page document are included as the second attachment. A copy of the full Meet and Confer Request Form is on file with the City Clerk. The DOF has scheduled the ROPS3 Meet and Confer for 4:00 pm on November 15, 2012. DISCUSSION: The DOF determination on ROPS3 focuses on three (3) specific enforceable obligations (Item Nos. 4, 28 and 30) along with two groups of enforceable obligations (Item Nos. 17 through 25, 6 and 7). A summary of the DOF determination and the Successor Agency’s response is provided below for each item. Item No. 4 –Zion First National Bank Lease Agreement The DOF determined the Zion First Nation Bank (Zion) Lease Agreement (with a payment of $127,424 due in ROPS3 and outstanding balance of $2,166,204 including this payment)is an obligation of the City and not the Successor Agency. The resolution dated June 23, 2009 approving the refunding of the 1997 Certificates of Participation and the corresponding staff report and Zion Lease Agreement list only the City as a party to this loan. An exhaustive search of records could find no resolution or agreement documenting that the former Community Redevelopment Agency assumed the financial responsibility for the Zion Lease Agreement from the City. In the Meet and 8.B Packet Pg. 81 Confer request the Successor Agency reserves the right to re-submit this enforceable obligation in future ROPS periods if additional clarifying documents become available. Item Nos. 17 through 25 –2011 Tax Exempt Tax Allocation Bond Projects The DOF determined projects listed in Item Nos. 17 through 25 could not be considered as enforceable obligations until the Successor Agency receives a Finding of Completion in the future. In the Meet and Confer request the Successor Agency only disagreed with this determination for Item No. 17,the design and right-of-way acquisition phase of the citywide master storm water study and Michigan Street right-of-way improvements project. The agreement for this was approved by the Successor Agency and Oversight Board (and not disallowed by the DOF) prior to Assembly Bill (AB) 1484, which included the Finding of Completion process, becoming law. Item No. 28 –Supplemental Education Revenue Augmentation Fund Loan Repayment to Low and Moderate Income Housing Fund The DOF disallowed the Successor Agency encumbering fund balance for repayment of a $448,636 Supplemental Education Revenue Augmentation Fund (SERAF) loan from Low and Moderate Income Housing Fund (LMIHF).The DOF has indicated that repayment will be allowed in FY 2013-14. The Successor Agency did not dispute this DOF determination in the Meet and Confer request. Item No. 30 –Residual Receipts Obligation of LMIHF This DOF determination provides clarification on the LMIHF’s obligation to backfill residual receipts payments to the City. The Successor Agency’s Meet and Confer request is to confirm if residual receipts are re-established as an enforceable obligation in future ROPS periods, after the Successor Agency receives a Finding of Completion and the Oversight Board makes a finding re-establishing the loan agreement, it will continue to be treated as a LMIHF obligation. The DOF has previously disallowed residual receipts as an enforceable obligation of the Successor Agency. Administrative Expenses in Excess of $250,000 Allowance The DOF has reclassified Item No. 6 (City News Group agreement for publishing legal notices) and Item No. 7 (Grand Terrace Chamber of Commerce agreement for economic development services) as administrative expenses instead of enforceable obligations resulting in the ROPS3 administrative budget exceeding the $250,000 allowance by $19,038. The Successor Agency disputes this DOF determination in the Meet and Confer request and provides reasons why both items should continue to be enforce obligations --publishing legal notices for the Successor Agency is only for wind down activities and agreement with the Chamber of Commerce pre-dates the June 28, 2011 enforceable obligation date. FISCAL IMPACT: The fiscal impact of the DOF determination on ROPS3 is provided below for each item. 8.B Packet Pg. 82 Item No. 4 –Zion First National Bank Lease Agreement The Zion Lease Agreement requires payments to be made twice a year with $127,424 due on March 1, 2013. In addition to the document search at City Hall, staff contacted the previous City Attorney who confirmed this financial transaction was between the City and Zion. It is not clear how the former Community Redevelopment Agency came to be responsible for the loan payments other than it being shown as such in the annual operating budget. Absent additional documents being located, the General Fund will have to assume responsibility for this loan which runs through August 1, 2020 ($2,166,204 including principal and interest). Staff will explore if the term of the loan can renegotiated to reduce the payment or if the loan can be refinanced. For Fiscal Year (FY) 2012-13, an appropriation from the General Fund’s unencumbered fund balance will be needed for any payment made on the loan. Item No. 17 -Design and Right-of-Way Acquisition Phase of Citywide Master Storm Water Study and Michigan Street Improvements Funding for this project is available through December 31, 2012 in ROPS2. If the Successor Agency does not prevail at the Meet and Confer for this item, work on the project will cease until the Successor Agency receives its Finding of Completion. To receive it the Successor Agency needs to complete the due diligence review for the Low and Moderate Income Housing and other Successor Agency funds, remit unencumbered fund balances to the County Auditor-Controller, and receive DOF approval of a property management plan. This process will hopefully be completed by next summer. Item No. 28 –Supplemental Education Revenue Augmentation Fund Loan Repayment to Low and Moderate Income Housing Fund When the SERAF loan is repaid to the LMIHF in FY 2013-14, pending the Successor Agency receiving sufficient property tax allocation, funds will be available to the Housing Authority for affordable housing obligations. Item No. 30 –Residual Receipts Obligation of LMIHF The DOF’s latest determination on residual receipts slightly improves upon the prior DOF determination which simply disallowed it as an enforceable obligation. $300,000 in General Fund revenue will have to be removed from the FY 2012-13 operating budget but there is now the possibility in future fiscal years for the Housing Authority to use future LMIHF funds (e.g. SERAF loan repayment, sale of LMIFH property) to make partial payment on this obligation. Related to this, the Successor Agency has a second Meet and Confirm request with the DOF on the three parcels purchased with LMIHF. The DOF has determined these parcels are assets of the Successor Agency, not the LMIHF which means they would not belong to the Housing Authority. The Successor Agency has objected to this DOF determination. The DOF has yet scheduled the Meet and Confer on this matter. Administrative Expenses in Excess of $250,000 Allowance 8.B Packet Pg. 83 The DOF’s determination on Item Nos. 6 and 7 does not present a significant budget problem for the Successor Agency in FY 2012-13, while it still has fund balance available to pay for approved obligations which exceed the $250,000 administrative allowance. Successor Agency Counsel has previously advised staff that this allowable. The more significant issue of this DOF determination begins in FY 2013-14, when the Successor Agency will no longer have available fund balance. The Successor Agency’s administrative budget for FY 2012-13 (ROPS2 and ROPS3) is $503,882 which exceeds the $250,000 administrative allowance by $253,882. In FY 2013-14, the Successor Agency will need to reduce its administrative budget to $250,000 and doing so may impact the General Fund. As previously mentioned in the staff report, the Meet and Confer with the DOF on ROPS3 is scheduled for November 15, 2012. Grand Terrace will be represented at the meeting by the Mayor, City Manager and Successor Agency Counsel. After the Meet and Confer, the DOF will develop draft findings based on the meeting, the Successor Agency will be allowed to respond to these findings, and then the DOF will issue its final determination. The timing for this process is not presently known but will likely need to be completed by the end of the calendar year. The fiscal impacts of the results from the Meet and Confer process, along with other DOF ROPS3 determinations not disputed by the Successor Agency, will be incorporated into the mid-year budget which will presented for consider by the City Council and Successor Agency in early 2013. ATTACHMENTS: ·Grand_Terrace_ROPS_III ·SA Response to DOF ROPS3Determination APPROVALS: Betsy Adams Completed 11/06/2012 4:31 PM Finance Completed 11/06/2012 5:29 PM City Attorney Completed 11/07/2012 9:22 AM City Manager Completed 11/07/2012 10:36 AM City Council Pending 8.B Packet Pg. 84 8. B . a Pa c k e t P g . 8 5 Attachment: Grand_Terrace_ROPS_III (1167 : DOF ROPS3 Determination) 8. B . a Pa c k e t P g . 8 6 Attachment: Grand_Terrace_ROPS_III (1167 : DOF ROPS3 Determination) 8. B . a Pa c k e t P g . 8 7 Attachment: Grand_Terrace_ROPS_III (1167 : DOF ROPS3 Determination) City of Grand Terrace as Sucessor Agency to Community Redevelopment Agency of Grand Terrace Response to Department of Finance ROPS3 Determination 1 Item No. 4 – Loan Between the City and Zion Bank in the Amount of $2.2 million At this time, the Successor Agency has been unable to find sufficient documentation showing that the former Redevelopment Agency obligated itself to pay the required amounts for Item No. 4. The Successor Agency concedes that Item No. 4 should be removed from ROPS3 at this time, but reserves the right to re-submit Item No. 4, in some form, in subsequent recognized obligation payment schedule periods if and when additional clarifying documents become available. Item Nos. 17 through 25 – 2011A TABS Bond Projects As a point of clarification, the Department of Finance’s letter of October 19, 2012 referred to 2001A TABS instead of 2011A TABS. The Successor Agency confirmed with the DOF that 2011 A is the correct date (Attachment 17-1). Items No. 18 through 25 The DOF cited HSC section 34191.4(c) in its determination that Item Nos. 17 through 25 were not enforceable obligations for the ROPS3 period but could be enforceable obligations in the future after the Successor Agency receives a Finding of Completion. At this time, the Successor Agency concurs with this determination for Item Nos. 18 through 25, because the projects required to be completed by the 2011A TABS and 2011B TABS bonds related to those items have not yet been approved such that the Successor Agency is required to begin work. Because the 2011A TABS and 2011B TABS bonds are enforceable obligations pursuant to Health & Safety Code section 34171(d)(1)(A) (in which the purposes for which they were bonded for are still achievable), the Successor Agency reserves the right to re-submit Item Nos. 18 through 25 on future recognized obligation payment schedule as may be required. However, the Successor Agency does not agree with this determination for Item 17 and appeals it through the meet and confer process. Item No. 17 Item No. 17, is for the design and right-of-way acquisition phase of a large public works project funded with tax-exempt bond proceeds issued by Grand Terrace’s former redevelopment agency (2011A TABS). The enforceable obligation for this phase of the project was established under ABx1 26 redevelopment dissolution law, not AB 1484. Below is the summary and timeline of the approvals for the design and right-of-way acquisition phase: June 15, 2011: Grand Terrace Community Redevelopment Agency issued 2011 Tax Allocation Bonds (Series A and B) as described in the Indenture of Trust (Attachment 8.B.b Packet Pg. 88 At t a c h m e n t : S A R e s p o n s e t o D O F R O P S 3 D e t e r m i n a t i o n ( 1 1 6 7 : D O F R O P S 3 D e t e r m i n a t i o n ) City of Grand Terrace as Sucessor Agency to Community Redevelopment Agency of Grand Terrace Response to Department of Finance ROPS3 Determination 2 17-9). The Tax Certificate for these bonds (Attachment 17-10) included a specific list of project for the tax exempt portion of the issuance. Included on the list are projects now currently in the design phase as a single project [Southwest area infrastructure, design and construction (storm drains); Michigan Street design, right-of-way acquisition and construction; Van Buren, Pico and Main Streets storm drain and street rehabilitation] as approved in ROPS2. Community Redevelopment Agency did not proceed with work on these bonds projects because ABx1 26 halted all redevelopment activity and the California Supreme Court issued a stay on new redevelopment activity in California Redevelopment Assn. v. Matosantos, 53 Cal. 4th 231 (Cal. 2011). January 30, 2012: Grand Terrace Community Redevelopment Agency adopted Resolution 2012-03 making findings of necessity and that the purpose of the 2011 tax allocation proceeds can be achieved (refer to pages 2 through 4 of Attachment 17-2). Listed in Attachment A of the Resolution is the Michigan Street improvements, Southwest area infrastructure (storm drains), and storm drain and street rehabilitation for Van Buren, Pico and Main Streets which are all adjacent to Michigan Street and run into the Southwest area of the project area. February 9, 2012: Community Redevelopment Agency submitted Resolution 2012-03 to the DOF for review (Attachment 17-2). February 17, 2012: DOF provides an opinion that if Item No. 17 was clearly laid out in the bond indenture and the 2011A TABS bonds were issued prior to June 28, 2011, then Item No. 17 as a project would be approved (Attachment 17-3). The Successor Agency and the Oversight Board relied on that advice when it originally approved Item No. 17 on April 4, 2012. April 4, 2012: Oversight Board adopted Resolution OB 2012-06 approving a city wide master storm water study and storm drain design; the design of Michigan Street right-of- way improvements; the use of unexpended 2011 bond proceeds to fund these projects and established an enforceable obligation of $908,694.60 for the design and right-of- way phase of the project (refer to pages 8 through 9 of Attachment 17-4). April 12, 2012: Successor Agency provided DOF with Resolution OB 2012-06 and attachments approving a city wide master storm water study and storm drain design; the design of Michigan Street right-of-way improvements; and the use of unexpended 2011 bond proceeds to fund these projects (refer to pages 2 through 26 of Attachment 17-4). Successor Agency did not receive any objections from DOF, and, therefore, pursuant to Health & Safety Code section 34179, Oversight Board action, through Resolution OB 2012-06, is a permissible authorization of the city wide master storm water study and storm drain design; the design of Michigan Street right-of-way improvements; and the use of unexpended 2011 bond proceeds to fund these projects. April 18, 2012: Oversight Board adopted Resolution OB 2012-08 approving the Recognized Obligation Payment Schedule for the period of July 1 through December 31, 2012 (ROPS2) which included $908,695 of enforceable obligations for the design 8.B.b Packet Pg. 89 At t a c h m e n t : S A R e s p o n s e t o D O F R O P S 3 D e t e r m i n a t i o n ( 1 1 6 7 : D O F R O P S 3 D e t e r m i n a t i o n ) City of Grand Terrace as Sucessor Agency to Community Redevelopment Agency of Grand Terrace Response to Department of Finance ROPS3 Determination 3 and right-of-way phase of the project for Fiscal Year 2012-13 with the ROPS2 portion of the enforceable obligation as $480,000 (refer to pages 2 through 11 of Attachment 17- 5). May 2, 2012: Successor Agency provided DOF with Resolution OB 2012-08 approving ROPS2 including $908,695 enforceable obligation for the design and right-of-way phase of the project for Fiscal Year 2012-13 with the ROPS2 portion of the enforceable obligation as $480,000 (Attachment 17-5). May 3, 2012: Successor Agency provided DOF with a second copy of Resolution OB 2012-06 and attachments approving a city wide master storm water study and storm drain design; the design of Michigan Street right-of-way improvements; and the use of unexpended 2011 bond proceeds to fund these projects (Attachment 17-4). May 25, 2012: DOF provides Successor Agency with approval letter for ROPS2 (Attachment 17-6). Approved ROPS2 includes $908,695 enforceable obligation for the design and right-of-way phase of the project for Fiscal Year 2012-13 with the ROPS2 portion of the enforceable obligation as $480,000. August 22, 2012: Oversight Board adopted Resolution OB 2012-16 approving the Recognized Obligation Payment Schedule for the period of January 1 through June 3, 2013 (ROPS3) which included the enforceable obligation for the Michigan Street improvements design and right-of-way phase of the project for Fiscal Year 2012-13 however, the amounts entered for this project were in error in several columns. Successor Agency requests the correction of this clerical error as follows: ROPS 3 Item No. 17 Column Submitted Requested Correction Project Name 2011A TABS Projects No Change Execution Date 3/13/2012 No Change Termination Date 3/13/2012 No Change Payee Webb & Assoc No Change Description Michigan St Improvements: design & ROW No Change Project Area Grand Terrace No Change Total Outstanding $428,695 $908,695 Total Due FY 2012-13 $480,000 $908,695 LMIHF - No Change Bond Proceeds - $908,695 Reserve Balance - No Change Admin Allowance - No Change RPTTF - No Change Other - No Change Six Month Total - $428,695 8.B.b Packet Pg. 90 At t a c h m e n t : S A R e s p o n s e t o D O F R O P S 3 D e t e r m i n a t i o n ( 1 1 6 7 : D O F R O P S 3 D e t e r m i n a t i o n ) City of Grand Terrace as Sucessor Agency to Community Redevelopment Agency of Grand Terrace Response to Department of Finance ROPS3 Determination 4 August 28, 2012: Successor Agency provided DOF with Resolution OB 2012-16 approving ROPS3 including the enforceable obligation for the Michigan Street improvement design and right-of-way phase of the project for Fiscal Year 2012-13 which needs to be corrected as noted above (Attachment 17-7). October 19, 2012: DOF provides Successor Agency with approval letter for ROPS3 (Attachment 17-8). Approved ROPS3 excludes Item No. 17 as an enforceable obligation. As allowed at the time by ABx1 26, the Department of Finance approved Item No. 17, Michigan Street improvements (design and right-of-way acquisition phase of $908,695 funded by 2011A tax allocation bonds) as an enforceable obligation for the Grand Terrace Successor Agency in ROPS2. This is the first phase of a large public works project. Based upon the previous approvals by the DOF on earlier phases of Item No. 17, the Successor Agency requests that ROPS3 be corrected for Item No. 17, as previously noted, so that this phase of the project can be completed as provided by contract in Fiscal Year 2012-13. If not, then the DOF’s determination that Health & Safety Code section 34191.4(c) prohibits the spending of the 2011A TABS and 2011B TABS bond proceeds (“Bond Proceeds”) is an incorrect reading of the law. Section 34191.4(c) only limits the spending of those bond proceeds that are sourced in bonds that were issued on or before December 31, 2010. Therefore, Section 34191.4(c) is inapplicable to the Bond Proceeds as they are sourced in bonds that were issued in 2011. Further, Section 34177(c) requires the Successor Agency to perform all obligations as required by any enforceable obligation. The Successor Agency is also prohibited from creating new enforceable obligations or beginning new redevelopment work unless those activities are done in “compliance with an enforceable obligation that existed prior to June 28, 2011.” Cal. Health & Safety Code section 34177.3. Enforceable obligations are defined to include bonds, “as defined by Section 33602 [of the Health & Safety Code] and bonds issued pursuant to Chapter 10.5 (commencing with Section 5850 of Division 6 of Title 1 of the Government Code…” Therefore, if a bond requires that, as part of the indenture, bond proceeds be spent in a particular manner (i.e. requires bond proceeds to be spent building certain projects), then the Successor Agency is obligated to spend bond proceeds in that manner so long as the purpose to be achieved is still achievable and the bonds were issued prior to June 28, 2011. But in order to use the bond proceeds, the indenture must be issued after December 31, 2010 and prior to June 28, 2011. The Bond Proceeds at issue here may clearly be spent because the bond indenture related to the Bond Proceeds is an enforceable obligation which was issued prior to June 28, 2011, but after December 31, 2010. (See Attachment 17-9 and 17-10). A summary of the attachments for Item No. 17 is a follows: 8.B.b Packet Pg. 91 At t a c h m e n t : S A R e s p o n s e t o D O F R O P S 3 D e t e r m i n a t i o n ( 1 1 6 7 : D O F R O P S 3 D e t e r m i n a t i o n ) City of Grand Terrace as Sucessor Agency to Community Redevelopment Agency of Grand Terrace Response to Department of Finance ROPS3 Determination 5 17-1: E-mail dated October 22, 2012 from Nichelle Thomas (DOF) to Bernie Simon (SA) confirming 2011A is correct date for TABS 17-2: Community Redevelopment Agency submittal to DOF of Resolution 2012-03 making findings regarding necessity and that purpose of the 2011 tax allocation proceeds can be achieved 17-3: E-mail dated February 17, 2012 from DOF accepting the projects listed in Resolution 2012-03 as enforceable obligations 17-4: Successor Agency submittal to DOF of Oversight Board Resolution OB 2012-06 approving a city wide master storm water study and storm drain design; the design of Michigan Street right-of-way improvements; and the use of unexpended 2011 bond proceeds to fund these projects 17-5: Successor Agency submittal to DOF of Oversight Board Resolution OB 2012-08 approving ROPS2 including $908,695 enforceable obligation for the Michigan Street improvements design and right-of-way phase of the project for Fiscal Year 2012-13 with the ROPS2 portion of the enforceable obligation as $480,000 17-6: DOF ROPS2 approval letter to Successor Agency including $908,695 enforceable obligation for the design and right-of-way phase of the project for Fiscal Year 2012-13 with the ROPS2 portion of the enforceable obligation as $480,000 17-7: Successor Agency submittal to DOF of Oversight Board resolution OB 2012-16 approving ROPS3 17-8: DOF ROPS3 approval letter to Successor Agency 17-9: 2011A TABS and 2011B TABS Bond Indentures 17-10: 2011A TABS and 2011B TABS Bond certificates Item Nos. 28 and 30 – SERAF Loan & Residual Receipts Agreement Clarification Only Item No. 28 At this time, Successor Agency does not dispute the Department of Finance’s determination that Item No. 28, Supplemental Education Revenue Augmentation Fund (SERAF) loan, shall not be repaid to the Low and Moderate Income Housing Fund (LMIHF) prior to Fiscal Year 2013-14 pursuant to HSC section 34176(e)(6)(B). Item No. 30 At this time, Successor Agency does not dispute DOF’s determination regarding Item No. 30. Further, the Successor Agency reserves the right to resubmit Item No. 30 after 8.B.b Packet Pg. 92 At t a c h m e n t : S A R e s p o n s e t o D O F R O P S 3 D e t e r m i n a t i o n ( 1 1 6 7 : D O F R O P S 3 D e t e r m i n a t i o n ) City of Grand Terrace as Sucessor Agency to Community Redevelopment Agency of Grand Terrace Response to Department of Finance ROPS3 Determination 6 the Successor Agency receives a Finding of Completion and the Oversight Board makes a finding to re-establish the loan agreement based upon advice from the DOF’s October 19, 2012 ROPS3 Determination Letter. DOF classified the $3 million residual receipts as being from the Low- to Moderate-Income Housing Fund. At this time, Successor Agency concurs with DOF’s designation that the $3,000,000 requested for the Residual Receipts Agreement is a low- and moderate-income housing obligation, which was requested during the ROPS2 period (Attachment 30-1). Successor Agency seeks DOF confirmation that if residual receipts are re-established as enforceable obligation in future ROPS periods, it will continue to be treated as a LMIHF obligation. Item Nos. 6 and 7 – Reclassified Administrative Expenses Department of Finance reclassified Item No. 6 (Professional Services of $13,878) and Item No. 7 (Consulting Services of $5,160) from enforceable obligations to administrative expenses causing the Successor Agency to exceed its $250,000 administrative cost allowance by $19,038. Successor Agency disputes the reclassification of these enforceable obligations for the reasons cited below. Both agreements are attached as Attachment 6-1 and Attachment 7-1, respectively. Item No. 6 Grand Terrace has a professional services agreement with the City News Group, awarded through a competitive proposal process, for the publication of legal notices for the City and former redevelopment agency (now the Successor Agency). For the Successor Agency, these legal notices are only for wind down activities of the former redevelopment agency and thus an enforceable obligation, not an administrative expense (See HSC section 34177.3(b)). In reviewing this enforceable obligation, the Successor Agency has determined that the $13,878 requested should be revised to $600 for the ROPS3 period. This number will increase in future ROPS periods as Successor Agency begins to sell off its property. Further, while this City News Group Agreement is between the City and City News Group (See Attachment 6-1), please see the attached Cooperation Agreement (See Attachment 6-2) in which creates allows permits the City to engage in activities for the benefit of the former Redevelopment Agency and receive reimbursement therefrom. Item No. 7 Former redevelopment agency entered into an agreement on July 13, 2010 with the Grand Terrace Chamber of Commerce to provide a broad range of services to the business community (Attachment 7.1). The agreement ends on June 30, 2013 and the Successor Agency would potentially be subject to liability for terminating the agreement without proper notice (60 days). Since the agreement was entered into by the former redevelopment agency prior to June 28, 2011 it is an enforceable obligation pursuant to 8.B.b Packet Pg. 93 At t a c h m e n t : S A R e s p o n s e t o D O F R O P S 3 D e t e r m i n a t i o n ( 1 1 6 7 : D O F R O P S 3 D e t e r m i n a t i o n ) City of Grand Terrace as Sucessor Agency to Community Redevelopment Agency of Grand Terrace Response to Department of Finance ROPS3 Determination 7 HSC section 34163(b), and not to be paid from administrative cost allowance pursuant to HSC section 34171. Further, this agreement is an enforceable obligation of the Successor Agency, because it is a legally binding and enforceable agreement pursuant to HSC section 34171(d)(1)(E). If the DOF finds otherwise, then the Successor Agency will be in breach of this enforceable obligation and potentially subject to liability. Successor Agency requests that DOF reconsider its reclassification of Item No. 6 and Item No. 7 and restore them as enforceable obligations. 8.B.b Packet Pg. 94 At t a c h m e n t : S A R e s p o n s e t o D O F R O P S 3 D e t e r m i n a t i o n ( 1 1 6 7 : D O F R O P S 3 D e t e r m i n a t i o n ) AGENDA REPORT MEETING DATE:November 13, 2012 Council Item TITLE:Repeal Municipal Code Chapter 3.24 and Adopt Proposed New Chapter 3.24 as the City's Purchasing System PRESENTED BY:Betsy Adams, City Manager RECOMMENDATION:Introduce an Ordinance to repeal existing Ordinance 95 and Municipal Code Chapter 3.24 (Purchasing of Supplies and Equipment) in their entirety and to adopt a new Chapter 3.24 (Purchasing System). BACKGROUND: The rules governing the City's purchases, Municipal Code Chapter 3.24 (Purchasing of Supplies and Equipment) were established by Ordinance 95 on August 22, 1985. There have been no subsequent updates to Chapter 3.24 which consists solely of Section 3.24.010 which adopted a purchasing manual by reference (Attachment 1). DISCUSSION: Soon after joining the City on October 25, 2011, the City Attorney identified deficiencies with the City's Purchasing Ordinance which actually consists of an outdated purchasing manual. It was determined that it would be more efficient to repeal and replace the existing Ordinance than to amend it. The proposed Purchasing Ordinance is based on a model recommended by the City Attorney. The most significant elements of the Ordinance are as follows: §Definitions for important purchasing terms have been included. §Formal bidding level has been increased to $10,000 from the current limit of $5,000. §Council is provided with discretion to waive the formal bidding procedure when it is in the best interest of the City to do so. §Cooperative purchasing agreements, “piggyback” purchases, and exceptions to competitive bidding requirements are defined and allowed. After the new Purchasing Ordinance has been adopted the Finance Department will need to update the City’s purchasing procedures. FISCAL IMPACT: There is no immediate fiscal impact by adopting the proposed Purchasing Ordinance. Increasing the formal bidding level to $10,000 could reduce the number for bid requests developed and issued which would free up staff time for other work assignments. 8.C Packet Pg. 95 ATTACHMENTS: ·Attachment 1_Current Chapter 3.24 ·Attachment 2_Proposed Chapter 3 APPROVALS: Betsy Adams Completed 11/01/2012 4:24 PM Finance Completed 11/05/2012 8:20 AM City Attorney Completed 11/05/2012 3:19 PM City Manager Completed 11/05/2012 4:32 PM City Council Pending 8.C Packet Pg. 96 Grand Terrace, California, Code of Ordinances >> Title 3 - REVENUE AND FINANCE >> Chapter 3.24 - PURCHASING OF SUPPLIES AND EQUIPMENT >> Chapter 3.24 - PURCHASING OF SUPPLIES AND EQUIPMENT Sections: 3.24.010 - Purchasing manual adopted by reference. 3.24.010 - Purchasing manual adopted by reference. The city of Grand Terrace Purchasing Manual, as revised in July 1985, is adopted by reference and is attached to the ordinance codified in this section as Exhibit A and is incorporated herein. (Ord. 93 § 1, 1985) Page 1 of 1Municode 11/1/2012http://library.municode.com/print.aspx?h=&clientID=16374&HTMRequest=http%3a%2f... 8.C.a Packet Pg. 97 At t a c h m e n t : A t t a c h m e n t 1 _ C u r r e n t C h a p t e r 3 . 2 4 ( 1 1 6 1 : P u r c h a s i n g O r d i n a n c e ) Chapter 3.24 – Page 1 ORDINANCE NO. _____ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA REPEALING IN THEIR ENTIRETY ORDINANCE NO. 95 AND CHAPTER 3.24 OF THE MUNICIPAL CODE AND ADOPTING AN ORDINANCE ESTABLISHING A NEW CHAPTER 3.24 (PURCHASING SYTEMS) OF TITLE 3 OF THE MUNICIPAL CODE WHEREAS, California Government Code Section 54202 every local agency to adopt policies and procedures, including bidding regulations, governing purchases of supplies and equipment by the local agency. WHEREAS, California Government Code Section 4526 provides that professional services may be awarded on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. WHEREAS, on August 22, 1985, the City Council of the City of Grand Terrace adopted Ordinance No. 93 adding Chapter 3.24 (Purchasing of Supplies and Equipment) to Title 3 of the Municipal Code. WHEREAS, the City Council of the City of Grand Terrace desires to have an updated ordinance governing purchases. NOW THEREFORE, it is hereby found, determined, and resolved by the City Council of the City of Grand Terrace, as follows: SECTION 1. Ordinance No. 93 and Chapter 3.24 of the Municipal Code are repealed in their entirety, and a new Chapter 3.24 (Purchasing System) to Title 3 of the Municipal Code is adopted, as follows: Chapter 3.24 Purchasing System Sections: 3.24.010 - Purchasing System Adopted. 3.24.020 - Definition of Terms. 3.24.030 - Purchasing Function Established. 3.24.040 - Purchasing Officer Designated. 3.24.050 - Exemptions from Centralized Purchasing. 3.24.060 - Public Projects Exemptions. 3.24.070 - Purchases under Ten Thousand Dollars. 8.C.b Packet Pg. 98 At t a c h m e n t : A t t a c h m e n t 2 _ P r o p o s e d C h a p t e r 3 ( 1 1 6 1 : P u r c h a s i n g O r d i n a n c e ) Chapter 3.24 – Page 2 3.24.080 - Formal Contract Procedure, Purchases Greater Than Ten Thousand Dollars. 3.24.090 - Professional and Contractual Services. 3.24.100 - Encumbrance of Funds. 3.24.110 - Inspection and Testing of Supplies, Materials and Equipment. 3.24.120 - Surplus Supplies, Materials and Equipment. 3.24.130 - Bid Splitting Prohibited. 3.24.140 - Equipment Leasing Agreements. 3.24.150 - Maintenance Agreements. 3.24.160 - Cooperative Purchasing Agreements with County or Other Agencies 3.24.170 - “Piggyback” Purchases. 3.24.180 - Exceptions to Competitive Bidding Requirement. 3.24.010 - Purchasing System Adopted. In order to establish efficient procedures for the purchase of supplies, materials, equipment or services at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function, and to assure the quality of purchases, a purchasing system is adopted. 3.24.020 - Definition of Terms. The following terms, whenever used in this chapter, shall be construed as follows: A. “Bidders’ List” means a current file of sources of supply of articles for each category of commodities repetitively purchased for city use. B. “Department” means any department, agency, commission or other unit of the city government, which derives its support wholly or in part from the city or an entity associated with the city for which separate financial statements are required. C. “Lowest Responsible Bidder” means in addition to price, the “lowest responsible bidder” will be determined after the following factors have been considered: 1. The ability, capacity and skill of the bidder to perform the contract or provide the service required; 2. Whether the bidder has the facilities to perform the contract or provide the service promptly, or within the time specified, without delay or interference; 8.C.b Packet Pg. 99 At t a c h m e n t : A t t a c h m e n t 2 _ P r o p o s e d C h a p t e r 3 ( 1 1 6 1 : P u r c h a s i n g O r d i n a n c e ) Chapter 3.24 – Page 3 3. The character, integrity, reputation, judgment, experience and efficiency of the bidder; 4. The bidders record of performance of previous contracts or services; 5. The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service; 6. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service; 7. The quality, availability and adaptability of the supplies, equipment or service to the particular use required; 8. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract; 9. The number and scope of conditions attached to the bid. D. “Open Market” means and pertains to purchases or transactions that are executed without recourse to formalized purchasing procedure. E. “Over the Counter” means and pertains to purchases or transactions that are executed without recourse to competitive bidding and without a purchase order. F. “Professional and Contractual Services” means services of engineers, architects, accountants, attorneys, doctors, consultants and other persons or businesses with specialized scientific, expert, technical, or other skills of a similar nature. G. “Purchases” means the purchases of supplies, materials, equipment or services shall include leases or rentals as well as transactions by which the city acquires ownership. H. “Purchase Order” means a document which authorizes the delivery of specified merchandise or the rendering of certain service and the making of a charge for such merchandise or service. I. “Requisition” means a written demand or request from the using department to the purchasing agent for specified article or service. J. “Responsible Bid” means an offer, submitted by a responsible bidder to furnish supplies, materials, equipment or services in conformity with the specifications, delivery terms and conditions and other requirements included in the invitation for bids. 8.C.b Packet Pg. 100 At t a c h m e n t : A t t a c h m e n t 2 _ P r o p o s e d C h a p t e r 3 ( 1 1 6 1 : P u r c h a s i n g O r d i n a n c e ) Chapter 3.24 – Page 4 K. “Responsible Bidder” means a bidder who submits a responsible bid and who is not only financially responsible, but is possessed of the resources, judgment, skill, ability, capacity and integrity requisite and necessary to perform the contract according to its terms. L. “Services” means any and all services including but not limited to the following: the repair or maintenance of equipment, machinery and other city-owned or operated property. The term does not include services rendered by city officers or employees, or professional and other contractual services which are in their nature unique and not subject to competition. M. “Specifications” means a formulated, definite and complete statement of what is required by the city of the vendor, in the way of composition, construction, utility, durability, efficiency, texture, shape, form or dimension. N. “Supplies, Materials and Equipment” means any and all articles or things which shall be furnished to or used by any Department, including all printing, binding, publications, stationery, forms, journals or reports. O. “Using Department” means the department that uses the supplies, materials, equipment or services obtained pursuant to a particular purchase. 3.24.030 - Purchasing Function Established. There is created a centralized purchasing function, in which is vested authority for the purchase of supplies, materials, equipment or services. 3.24.040 - Purchasing Officer Designated. A function of purchasing officer is hereby created and shall be appointed by the city manager. The purchasing officer may delegate purchasing duties. The duties of the purchasing officer may be combined with those of any other office or position. A. The purchasing officer shall have the powers and duties as follows: 1. Purchase or contract for supplies, materials, equipment or services required by any office or department of the city in accordance with purchasing procedures prescribed by this section, and such other rules or regulations as shall be prescribed by the city council; 2. Act to procure for the city the needed quality in supplies, materials, equipment or services at least expense to the city; 3. Discourage uniform bidding, and endeavor to obtain as full and open competition as possible on all purchases; 8.C.b Packet Pg. 101 At t a c h m e n t : A t t a c h m e n t 2 _ P r o p o s e d C h a p t e r 3 ( 1 1 6 1 : P u r c h a s i n g O r d i n a n c e ) Chapter 3.24 – Page 5 4. Prepare and recommend to the city manager and city council rules governing the purchase of supplies, services and equipment for the city; 5. Keep informed of current developments in the field of purchasing prices, market conditions and new products; 6. Prescribe and maintain such forms as are reasonably necessary to the operation of this section and other rules and regulations; 7. Recommend the transfer of surplus or unused supplies and equipment between departments as needed, and the sale of all supplies and equipment which cannot be used by any department, or which have become unsuitable for city use. 3.24.050 - Exemptions from Centralized Purchasing. The city manager may authorize any city department to purchase or contract for specified supplies, materials, equipment or services but the purchasing officer shall require that such purchases or contract be made in conformity with the procedures established by this section, and shall further require periodic reports from the department on the purchases and contracts made under such written authorization. 3.24.060 - Public Projects Exemptions. This chapter is expressly made inapplicable to bids for public projects governed by the procedures in Public Contract Code Section 20100 et seq. The provisions contained in Public Contract Code Section 20100 et seq. establish the contract procedures the city shall follow regarding public projects. 3.24.070 - Purchases under Ten Thousand Dollars. Purchase of supplies, materials, equipment or services not exceeding an estimated value of ten thousand dollars ($10,000) may be made by a city Department in the open market, pursuant to the procedure prescribed in this ordinance; provided, however, all quotation may be dispensed with in an emergency, or where said goods and/or services can be obtained from only one source. A using department is responsible for insuring there is a sufficient appropriation in the budgetary account against which said purchase is to be charged. A. Using Department shall follow the following procedure when making an open market purchase: 1. Purchases under ten thousand dollars shall, whenever possible, be based on at least three (3) informal quotations and shall be awarded to the vendor submitting the lowest responsible quotation. 8.C.b Packet Pg. 102 At t a c h m e n t : A t t a c h m e n t 2 _ P r o p o s e d C h a p t e r 3 ( 1 1 6 1 : P u r c h a s i n g O r d i n a n c e ) Chapter 3.24 – Page 6 2. Solicit quotations from prospective vendors by written request, electronic mail or by telephone. 3. Written quotations shall be submitted to the using department, which shall keep a record of all open-market orders and quotes for a period of one year after the submission of quotes or the placing of orders. 4. Where written contracts are entered into for purchases made under this section, the department head is authorized to execute such contracts on behalf of the city. Such purchases shall be made only by purchase order. A copy of the executed contract shall be maintained on file in the offices of the requesting department. 5. Using departments shall submit standard purchase order requisition forms to the purchasing officer when requesting goods and services pursuant to this section. B. Notwithstanding subsection “A” above, purchases of supplies, materials, equipment or services not exceeding an estimated value of five hundred dollars ($500) may be made over the counter by a department head without requirement for quotations or comparative pricing. Furthermore, such goods and services may be obtained without a purchase order. 3.24.080 - Formal Contract Procedure, Purchases Greater Than Ten Thousand Dollars. Except as otherwise provided herein, purchases of supplies, materials, equipment or services with a value greater than ten thousand dollars ($10,000) shall be awarded to the lowest responsible bidder, pursuant to the procedure prescribed in this section. Written contracts may be required when in the judgment of the city manager the public interest is served thereby. A. Notice inviting bids shall include a general description of the articles to be purchased and shall state where bid documents and specifications may be obtained and the time and place for opening bids. 1. Notice Inviting Bids. Notice inviting bids shall be published by the city clerk at least ten (10) days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the city. 2. Bidders’ List. The City shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders’ list. B. Bidders’ Security. When deemed necessary by the purchasing agent, bidders’ security shall be required. Bidders shall be entitled to return of bid security 8.C.b Packet Pg. 103 At t a c h m e n t : A t t a c h m e n t 2 _ P r o p o s e d C h a p t e r 3 ( 1 1 6 1 : P u r c h a s i n g O r d i n a n c e ) Chapter 3.24 – Page 7 upon execution of the contract or upon the readvertisement for bids; provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the city council awards the contract to the next lowest bidder, the bidder first awarded the contract shall forfeit only the portion of his security, which is equal to the difference between his bid and the bid of the next lowest responsible bidder. If the next lowest bidder is awarded the contract and he fails or refuses to execute the contract, he shall forfeit his entire bid security. C. Bid Opening Procedure. Sealed bids shall be submitted to the city clerk, and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening. D. Rejection of Bids. At its discretion, the city council may reject any and all bids presented, and re-advertise for bids. E. Award of Contracts. Contracts shall be awarded by the city council to the lowest responsible bidder except as otherwise provided herein. A master copy of the contract is to be on file in the city clerk’s department upon execution of the contract. F. Award of Contracts by City Manager. The city manager is authorized to award contracts to the lowest responsible bidder when the city council has budgeted funds for the item(s) and the amount of the award is not more than the budgeted amount. All contracts awarded pursuant to this section shall require issuance of a purchase order. G. Tie Bids. If two or more bids received are for the same total amount or unit price, quality, service and delivery being equal, and if the public interest will not permit the delay of re-advertising for bids, the city council may accept the one it chooses, or accept the lowest bona fide offer by negotiation with the tie bidders at the time of the bid opening. H. Performance Bonds. The city shall have authority to require a performance bond before entering a contract, in such amount as it shall be found reasonably necessary to protect the best interests of the city. If the city requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. I. Single Source Purchases. Single source purchase of goods or services that can be obtained from only one source may be made by a city Department or 8.C.b Packet Pg. 104 At t a c h m e n t : A t t a c h m e n t 2 _ P r o p o s e d C h a p t e r 3 ( 1 1 6 1 : P u r c h a s i n g O r d i n a n c e ) Chapter 3.24 – Page 8 the purchasing officer without advertising and after approval by the city council. J. Waiver of Formal Bidding Requirement. The city council may authorize purchase of supplies, materials, equipment or services of a value greater than ten thousand dollars without complying with the above procedures when in the opinion of the council, compliance with the procedure is not in the best interest of the city. 3.24.090 - Professional and Contractual Services. Contracts for services of specially trained and professional persons or businesses shall be exempt from bidding. If possible, quotes from three (3) qualified vendors shall be obtained prior to the award of a contract and the award of contract may be based on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. If the contract is equal to or below ten thousand dollars, the contract shall require the approval of, and be executed by, the city manager. All contracts exceeding ten thousand dollars must be approved by the city council. 3.24.100 - Encumbrance of Funds. Except in cases of emergency, the purchasing officer shall not issue any purchase order for supplies, equipment, or services for which there is an insufficient appropriation in the budgetary account against which said purchase is to be charged. 3.24.110 - Inspection and Testing of Supplies, Materials and Equipment. The city may inspect supplies, materials and equipment delivered to determine their conformance with the specifications set forth in the order or contract. The city shall have authority to require chemical and physical tests of samples submitted with bids, and samples of deliveries, which are necessary to determine their quality and conformance with specifications. 3.24.120 - Surplus Supplies, Materials and Equipment. All using departments shall submit to the purchasing officer, at such times and in such forms as he shall prescribe, reports showing all supplies, materials and equipment which are no longer used or which have become obsolete or worn out. The using department, with the concurrence of the purchasing officer, shall have authority to sell all supplies, materials and equipment which cannot be used by any department, or which have become unsuitable for city use, or to exchange the same for or trade the same in on new supplies and equipment. The purchasing officer shall also have the authority to make transfers between departments of any usable surplus supplies, materials or equipment. The sale of supplies, materials or equipment when the total estimated value exceeds ten thousand dollars requires approval by the city council. 8.C.b Packet Pg. 105 At t a c h m e n t : A t t a c h m e n t 2 _ P r o p o s e d C h a p t e r 3 ( 1 1 6 1 : P u r c h a s i n g O r d i n a n c e ) Chapter 3.24 – Page 9 Surplus supplies, materials or equipment which cannot be sold may be donated to a local not-for-profit organization with approval of the city manager. 3.24.130 - Bid Splitting Prohibited. Splitting orders of supplies, materials, equipment or services into smaller or separate orders for the purpose of evading the competitive bidding provisions of this chapter are prohibited. 3.24.140 - Equipment Leasing Agreements. A. As used in this section: 1. “Leasing of nonpurchasable equipment” means equipment which is available through “lease only” plans; 2. “Leasing purchasable equipment” means equipment which can be acquired through “lease with option to purchase” type plans; B. Equipment Leasing. Leasing of purchasable or nonpurchasable equipment shall be in accordance with subsections 3.24.070 through 3.24.080 of this section. 3.24.150 - Maintenance Agreements. A. As used in this section, “maintenance agreements” means agreements with maintenance service providers for the maintenance of city equipment in good operating condition subject to terms and conditions agreeable to both the provider and the city. B. Maintenance agreements shall be signed or terminated before agreement expiration by the purchasing agent with prior approval of the department head responsible for the equipment. 3.24.160 - Cooperative Purchasing Agreements with County or Other Agencies. Nothing contained in this section shall prohibit the voluntary participation by the city in any voluntary cooperative purchasing agreement(s) or programs entered into between the city and the state, county, and other municipalities situated within the boundaries of the county, and the purchasing agent is empowered and authorized to act under the provisions of this section, to procure for the city supplies and equipment in conjunction with such voluntary cooperative purchasing agreement(s) or programs as may be entered into by the city. All formal contract and bidding procedures to be followed in such cases shall be those specifically enumerated in the voluntary cooperative purchasing agreement or program. 8.C.b Packet Pg. 106 At t a c h m e n t : A t t a c h m e n t 2 _ P r o p o s e d C h a p t e r 3 ( 1 1 6 1 : P u r c h a s i n g O r d i n a n c e ) Chapter 3.24 – Page 10 3.24.170 - “Piggyback” Purchases. Nothing contained in this section shall prohibit the city from purchasing supplies, materials, equipment or services without complying with the herein bidding procedure, from a supplier who offers the same or better price, terms and/or conditions as the supplier previously offered as the lowest responsible bidder under competitive procurement conducted by another city or public agency, provided that the competitive procurement process of the other agency meets or exceeds the standards of the city, is for like or greater quantities, includes all known bidders and that, in the opinion of the purchasing agent, it is in the best interest of the city. This procurement practice is commonly referred to as “piggyback” purchasing. 3.24.180 - Exceptions to Competitive Bidding Requirement. Notwithstanding any provision of this chapter to the contrary, the competitive bidding provisions of this chapter may be dispensed with when contracts which by their nature do not lend themselves to award by competitive bidding such as, but not limited to: A. Repairs and/or maintenance of equipment which requires unique skills, abilities or training. B. Equipment which must be used in order to be compatible with existing city equipment. C. Perishable goods. D. Insurance where obtaining broker quotes is impracticable. E. Computer hardware, software and licenses which are uniformly priced or have a standard governmental price. F. Supplies, materials or equipment which can be obtained at a favorable price as a result of other governmental purchasing programs. G. Emergency is found to exist and the city council authorizes the purchase of supplies, materials, equipment or services where it is determined that service involving the public health, safety or welfare would be interrupted if the normal procedure were followed. H. Such other circumstances as the city council may determine and document that will result in cost savings greater than those which would result from the use of customary bidding process. 8.C.b Packet Pg. 107 At t a c h m e n t : A t t a c h m e n t 2 _ P r o p o s e d C h a p t e r 3 ( 1 1 6 1 : P u r c h a s i n g O r d i n a n c e ) Chapter 3.24 – Page 11 ATTEST: ______________________________ _____________________________ City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace and of the City Council thereof and of the City Council thereof I, Tracey Martinez, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council on the 10th of January 2012, and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 24th day of January 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ Tracey Martinez, City Clerk Approved as to form: ________________________________ Richard L. Adams, City Attorney 8.C.b Packet Pg. 108 At t a c h m e n t : A t t a c h m e n t 2 _ P r o p o s e d C h a p t e r 3 ( 1 1 6 1 : P u r c h a s i n g O r d i n a n c e )