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11/27/2012CITY OF GRAND TERRACE CITY COUNCIL AGENDA • NOVEMBER 27, 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.Grand Terrace Area Chamber of Commerce Business of the Month 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. Agenda Grand Terrace City Council November 27, 2012 City of Grand Terrace Page 2 Updated 10/25/2012 1:16 PM A.Waive Full Reading of Full Ordinances on Agenda B.Approval of Check Register No. 11-27-2012 C.Approve Amendment to Professional Service Agreement Between Albert A. Webb Associates Incorporated and the City of Grand Terrace Extending the Term of the Agreement to December 31, 2013. 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.Repeal Municipal Code Chapter 3.24 and Adopt New Chapter 3.24 as the City's Purchasing System 8.NEW BUSINESS A.Initial Review of Draft "Due Diligence Review" Pertaining to Non-Housing Funds of the Successor Agency of the Community Redevelopment Agency of the City of Grand Terrace Pursuant to the Health and Safety Code B.Final Design of the "Service Clubs" Sign Proposed by the Lion's and Women's Club C.Partnership with Riverside Highland Water District on Grand Terrace Fitness Park Demonstration Garden 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 ADJOURN The Next Regular City Council Meeting will be held on Tuesday, December 11, 2012 at 7:30 PM. Agenda item requests must be submitted in writing to the City Clerk’s office no later than 14 calendar days preceding the meeting. AGENDA REPORT MEETING DATE:November 27, 2012 Council Item TITLE:Approval of Check Register No. 11-27-2012 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 27,2012 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 $209,824.12 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: 68727 Ace Weed Abatement Inc Weed Abatement on various locations $3,355.50 68729 Amsterdam Printing 2013 Child Care Attendance Calendars $33.42 68737 Fence Medic Gate Repairs to the Public Works Yard $400.00 68742 High Tech Security Systems Security Camera Monitoring DVR Repairs $175.00 68751 TLMA Administration Traffic Signals at Michigan and Main and Main and Grand Terrace High School $2,491.57 Some the larger items include: 68728 Albert A. Webb Associates October Master Plan Storm Drain Services and Title Reports $53,042.29 68732 City of Colton December 2012 Advance for Wastewater Treatment Fees $98,500.00 68755 Zions Bank Semi-Annual December HVAC Payment $14,409.50 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 3.B Packet Pg. 3 FISCAL IMPACT: All disbursements are made in accordance with the Adopted Budget for Fiscal Year 2012-13. ATTACHMENTS: ·Check Register Account Index ·Check Register 11/27/2012 APPROVALS: Steve Elam Completed 11/20/2012 12:31 PM Finance Completed 11/20/2012 12:32 PM City Attorney Completed 11/20/2012 12:51 PM City Manager Completed 11/20/2012 1:16 PM City Council Pending 3.B Packet Pg. 4 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. B . a Pa c k e t P g . 5 Attachment: Check Register Account Index (1173 : Check Register No. 11-27-2012) 11/20/2012 Voucher List CITY OF GRAND TERRACE 1 11:33:13AM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68718 11/13/2012 001213 AT & T Nov 2012 Oct/Nov Phones & Internet Service 10-805-235-000-000 164.30 10-808-235-000-000 105.17 10-450-235-000-000 47.00 10-190-235-000-000 532.08 09-440-235-000-000 398.43 Total : 1,246.98 68719 11/13/2012 001907 COSTCO #478 0478 10 0069 8 CHILD CARE SUPPLIES 09-440-220-000-000 231.45 Total : 231.45 68720 11/15/2012 011199 PRUDENTIAL MUNICIPAL POOL OctoberBenefits October Employee Benefits- EAP, Life, 10-380-142-000-000 9.09 21-175-142-000-000 7.12 09-440-142-000-000 114.08 21-625-142-000-000 2.32 10-450-142-000-000 3.50 10-625-110-000-000 5.41 32-200-142-000-000 18.41 10-022-66-00 914.12 10-120-142-000-000 26.29 10-125-142-000-000 8.79 10-140-142-000-000 16.91 10-172-142-000-000 13.13 10-175-142-000-000 13.91 10-185-142-000-000 12.33 10-370-142-000-000 18.54 16-175-142-000-000 12.16 Total : 1,196.11 68721 11/20/2012 006720 SO.CA.EDISON COMPANY Oct 2012 October Energy Usage 16-510-238-000-000 4,233.09 26-600-238-000-000 49.80 26-601-238-000-000 41.50 26-602-238-000-000 58.10 1Page: 3.B.b Packet Pg. 6 At t a c h m e n t : C h e c k R e g i s t e r 1 1 / 2 7 / 2 0 1 2 ( 1 1 7 3 : C h e c k R e g i s t e r N o . 1 1 - 2 7 - 2 0 1 2 ) 11/20/2012 Voucher List CITY OF GRAND TERRACE 2 11:33:13AM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 4,382.49 68721 11/20/2012 006720 SO.CA.EDISON COMPANY 68722 11/20/2012 006730 SO.CA.GAS COMPANY Oct 2012 October CNG Fuel 10-175-272-000-000 7.80 10-185-272-000-000 2.60 09-440-272-000-000 2.60 Total : 13.00 68723 11/20/2012 010664 SHELL FLEET MANAGEMENT 8000209687211 October Vehicle Fuel 10-175-272-000-000 647.63 Total : 647.63 68724 11/20/2012 010218 CHEVRON & TEXACO CARD SERVICES 36297492 October Vehicle Fuel 10-185-272-000-000 42.37 10-175-272-000-000 135.37 09-440-272-000-000 116.27 Total : 294.01 68725 11/20/2012 011199 PRUDENTIAL MUNICIPAL POOL November EmployeeBenNovember Emp Benefits- EAP, Life, AD&D, 10-120-142-000-000 26.29 10-022-66-00 468.87 10-125-142-000-000 8.79 10-140-142-000-000 16.91 10-172-142-000-000 13.13 10-175-142-000-000 13.91 10-185-142-000-000 12.33 10-450-142-000-000 3.50 10-625-110-000-000 5.41 16-175-142-000-000 12.16 21-175-142-000-000 7.12 21-625-142-000-000 2.32 10-370-142-000-000 18.54 10-380-142-000-000 9.09 09-440-142-000-000 114.08 32-200-142-000-000 18.41 Total : 750.86 68726 11/20/2012 011138 SPARKLETTS 9637116 110112 October Bottled Water 2Page: 3.B.b Packet Pg. 7 At t a c h m e n t : C h e c k R e g i s t e r 1 1 / 2 7 / 2 0 1 2 ( 1 1 7 3 : C h e c k R e g i s t e r N o . 1 1 - 2 7 - 2 0 1 2 ) 11/20/2012 Voucher List CITY OF GRAND TERRACE 3 11:33:13AM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68726 11/20/2012 (Continued)011138 SPARKLETTS 10-190-238-000-000 131.13 10-805-238-000-000 23.90 09-440-238-000-000 64.85 Total : 219.88 68727 11/27/2012 011188 ACE WEED ABATEMENT, INC.122 Weed Abatement APN 1167-311-01 32-370-255-000-000 241.50 123 Weed Abatement APN 1167-231-01 32-370-255-000-000 241.50 124 Weed Abatement APN 1167-151-68 32-370-255-000-000 1,719.00 125 Weed Abatement APN 1167-151-22 32-370-255-000-000 744.00 126 Weed Abatement APN 1167-141-08 32-370-255-000-000 136.50 127 Weed Abatement APN 0276-202-54 32-370-255-000-000 136.50 128 Weed Abatement APN 0275-251-04 32-370-255-000-000 136.50 Total : 3,355.50 68728 11/27/2012 011143 ALBERT A. WEBB ASSOCIATES 123847 October Master Plan Storm Drain Srvs 50-900-311-001-000 40,104.79 124035 Title Reports-Storm Water Master Plan 50-900-311-001-000 12,937.50 Total : 53,042.29 68729 11/27/2012 010158 AMSTERDAM PRINTING 3356262 C.Care 2013 Attendance Calendar 09-440-210-000-000 33.42 Total : 33.42 68730 11/27/2012 001740 CDW GOVERNMENT INC S161638 XEROX CYAN TONER 10-808-210-000-000 109.37 S191836 XEROX MAGENTA TONER 10-808-210-000-000 109.43 3Page: 3.B.b Packet Pg. 8 At t a c h m e n t : C h e c k R e g i s t e r 1 1 / 2 7 / 2 0 1 2 ( 1 1 7 3 : C h e c k R e g i s t e r N o . 1 1 - 2 7 - 2 0 1 2 ) 11/20/2012 Voucher List CITY OF GRAND TERRACE 4 11:33:13AM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 218.80 68730 11/27/2012 001740 CDW GOVERNMENT INC 68731 11/27/2012 011031 CINTAS CORPORATION #150 150710586 Child Care Paper Goods & Supplies 09-440-228-000-000 223.07 150719557 Child Care Paper Goods & Supplies 09-440-228-000-000 200.62 Total : 423.69 68732 11/27/2012 001840 CITY OF COLTON Dec 2012 AdvanceDec Wastewater Treatment Advance 21-570-802-000-000 98,500.00 Total : 98,500.00 68733 11/27/2012 011029 COBRA SIMPLE 145 June COBRA Administration Fee 10-190-220-000-000 50.00 160 September COBRA Administration Fee 10-190-220-000-000 50.00 163 October COBRA Administration Fee 10-190-220-000-000 50.00 Total : 150.00 68734 11/27/2012 011166 CORNERSTONE RECORDS MANAGEMENT 0194025 OCTOBER ARCHIVE TAPE STORAGE 10-140-250-000-000 56.65 10-380-250-000-000 56.65 Total : 113.30 68735 11/27/2012 002275 ESRI 92565934 ARCGIS FOR DESKTOP ADVANCED 10-380-249-000-000 4,000.00 10-380-249-000-000 155.00 Total : 4,155.00 68736 11/27/2012 002301 FEDEX 2-076-63929 October Document Delivery 10-190-210-000-000 25.82 Total : 25.82 68737 11/27/2012 002400 FENCE MEDIC 121005 Gate Repair for Public Works Yard 10-195-246-000-000 400.00 Total : 400.00 4Page: 3.B.b Packet Pg. 9 At t a c h m e n t : C h e c k R e g i s t e r 1 1 / 2 7 / 2 0 1 2 ( 1 1 7 3 : C h e c k R e g i s t e r N o . 1 1 - 2 7 - 2 0 1 2 ) 11/20/2012 Voucher List CITY OF GRAND TERRACE 5 11:33:13AM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68738 11/27/2012 002710 FOX OCCUPATIONAL MEDICAL CT.68679-37885 Dot Exam-M. McMillan 09-440-228-000-000 35.00 68679-39163 Sept Employee Physicals 10-190-224-000-000 63.00 09-440-228-000-000 220.00 68679-39575 Hep B Vaccine-Y. Bright 09-440-228-000-000 60.00 Total : 378.00 68739 11/27/2012 011040 GOVERNMENT STAFFING SVCS INC 123494 Temp Sr Acct Tech 10/8/12-10/21/12 10-140-111-000-000 2,380.00 123510 Temp Sr Acct Tech 10/22/12-11/4/12 10-140-111-000-000 2,152.50 Total : 4,532.50 68740 11/27/2012 011254 GRYPHON HOUSE INC.1000045018 Resource Books for Child Care Staff 09-440-228-000-000 25.00 09-440-223-000-000 38.94 Total : 63.94 68741 11/27/2012 010752 GST INC.JOI318570 MCAFEE ACTIVE VIRUS DEFENSE 10-380-249-000-000 452.40 Total : 452.40 68742 11/27/2012 010632 HIGH TECH SECURITY SYSTEMS 102495 Security Camera Monitoring DVR Repairs 10-450-246-000-000 131.25 10-195-247-000-000 43.75 Total : 175.00 68743 11/27/2012 011216 JONES & MAYER 61143 August-Sept GT Litigation 10-160-250-100-000 1,384.07 61144 Sept GT RLA Retainer 10-160-250-000-000 4,102.26 32-200-251-000-000 4,102.27 Total : 9,588.60 68744 11/27/2012 005400 OFFICE DEPOT 630419031001 Toner Cartridge 5Page: 3.B.b Packet Pg. 10 At t a c h m e n t : C h e c k R e g i s t e r 1 1 / 2 7 / 2 0 1 2 ( 1 1 7 3 : C h e c k R e g i s t e r N o . 1 1 - 2 7 - 2 0 1 2 ) 11/20/2012 Voucher List CITY OF GRAND TERRACE 6 11:33:13AM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68744 11/27/2012 (Continued)005400 OFFICE DEPOT 10-120-210-000-000 149.42 630430973001 Toner Cartridges & Office Supplies 10-120-210-000-000 304.42 630777120001 Office Supplies 10-140-210-000-000 18.50 10-120-210-000-000 46.52 630875323001 Office Supplies 09-440-210-000-000 54.06 631661556001 Office Supplies 10-140-210-000-000 59.43 631661678001 Office Supplies 10-140-210-000-000 15.71 Total : 648.06 68745 11/27/2012 005586 PETTY CASH 11142012 Replenish C.Care Petty Cash 09-440-220-000-000 58.77 09-440-221-000-000 19.81 09-440-223-000-000 18.00 09-440-228-000-000 137.85 09-440-245-000-000 20.06 Total : 254.49 68746 11/27/2012 011245 RAQUEL'S CLEANING SERVICE 0000005 OCTOBER C. CARE CLEANING SERVICES 09-440-244-000-000 800.00 Total : 800.00 68747 11/27/2012 007005 SO CAL LOCKSMITH 21340 Public Works Building Keys 10-195-245-000-000 8.62 Total : 8.62 68748 11/27/2012 006778 STAPLES 601110007023633Office Supplies 10-380-250-000-000 51.28 10-185-210-000-000 21.04 Total : 72.32 68749 11/27/2012 006898 SYSCO FOOD SERVICES OF L.A.211060804 5 C. CARE FOOD/SUPPLIES 6Page: 3.B.b Packet Pg. 11 At t a c h m e n t : C h e c k R e g i s t e r 1 1 / 2 7 / 2 0 1 2 ( 1 1 7 3 : C h e c k R e g i s t e r N o . 1 1 - 2 7 - 2 0 1 2 ) 11/20/2012 Voucher List CITY OF GRAND TERRACE 7 11:33:13AM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68749 11/27/2012 (Continued)006898 SYSCO FOOD SERVICES OF L.A. 09-440-220-000-000 611.52 211130535 1 C. CARE FOOD/SUPPLIES 09-440-220-000-000 740.10 Total : 1,351.62 68750 11/27/2012 011250 TIME FOR CHANGE FOUNDATION 11192012 CDBG Oct Inv. Case #106-38127/3876 22-425-309-000-000 1,000.00 Total : 1,000.00 68751 11/27/2012 011253 TLMA ADMINSTRATION TL0000009180 50% Mt Vernon & Main Proj 6140014 16-900-257-000-000 1,599.73 TL0000009182 SLF COSTS TRAF SIG-MICH.& MAIN/GT HIGH 16-510-255-000-000 891.84 Total : 2,491.57 68752 11/27/2012 007854 WESTERN EXTERMINATORS CO 692918 OCTOBER PEST CONTROL SERVICES 10-195-245-000-000 95.00 09-440-245-000-000 158.00 10-805-245-000-000 36.50 Total : 289.50 68753 11/27/2012 007920 WILLDAN 002-12754 October Plan Review & Inspection Srv 10-172-250-000-000 3,372.50 002-12755 October Engineering Services 10-175-255-000-000 230.00 Total : 3,602.50 68754 11/27/2012 007987 XEROX CORPORATION 064780821 OCTOBER WC5755A XEROX COPIER LEASE 10-190-700-000-000 305.27 Total : 305.27 68755 11/27/2012 010697 ZIONS BANK 0010053988684339001December HVAC Payment 10-195-257-000-000 14,409.50 Total : 14,409.50 Bank total : 209,824.12 38 Vouchers for bank code :bofa 7Page: 3.B.b Packet Pg. 12 At t a c h m e n t : C h e c k R e g i s t e r 1 1 / 2 7 / 2 0 1 2 ( 1 1 7 3 : C h e c k R e g i s t e r N o . 1 1 - 2 7 - 2 0 1 2 ) 11/20/2012 Voucher List CITY OF GRAND TERRACE 8 11:33:13AM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 209,824.12Total vouchers :Vouchers in this report 38 8Page: 3.B.b Packet Pg. 13 At t a c h m e n t : C h e c k R e g i s t e r 1 1 / 2 7 / 2 0 1 2 ( 1 1 7 3 : C h e c k R e g i s t e r N o . 1 1 - 2 7 - 2 0 1 2 ) AGENDA REPORT MEETING DATE:November 27, 2012 Council & Successor Agency Item TITLE:Approve Amendment to Professional Service Agreement Between Albert A. Webb Associates Incorporated and the City of Grand Terrace Extending the Term of the Agreement to December 31, 2013. PRESENTED BY:Richard Shields, Community Development Director RECOMMENDATION:Approve the amendment to the Professional Service Agreement with Albert A. Webb Associates Incorporated and the City of Grand Terrace extending the existing Professional Service Agreement until December 31, 2013. Authorize the City Manager to sign the Amended Professional Service Agreement. BACKGROUND: On March 13, 2012 the Successor Agency approved a Professional Service Agreement between the City, in its capacity as the Successor Agency, and Albert A. Webb Associates Inc, ("Consultant") to design a City Wide Stormwater Master Plan and roadway improvements on Michigan Street. The agreement set forth an appropriation of $908,694.60 from unexpended redevelopment bond proceeds to be used to fund the City Wide Stormwater Master Plan and the Michigan Street improvements. A resolution was also adopted approving the funding of the design for the project to be paid using Bond proceeds. The Successor Agency also authorized the Executive Director to sign the Professional Service Agreement. DISCUSSION: Staff and our Consultant are currently working on the design of the Michigan Street improvements.The City Wide Stormwater Master Plan has been completed and stormwater alternatives are being reviewed. Updates on both projects have been presented to the City Council and the Successor Agency. One-on-one meetings have been conducted with many property owners on Michigan Street.A public meeting was held at Wilden Pump on November 14, 2012 to discuss and obtain feedback on the proposed street improvements with residents in the surrounding area. The Professional Service Agreement entered into on March 13, 2012 term will expire on December 31, 2012. An Amendment to the Professional Service Agreement is being proposed to the City Council and Successor Agency for approval to extend the original contract term to end on December 31, 2013. If approved by the Successor Agency, this amendment will then be transmitted to the Oversight Board for their approval and ratification. 3.C Packet Pg. 14 FISCAL IMPACT: No fiscal impact other than preparing the staff report to the City Council and Successor Agency. ATTACHMENTS: ·Professional Services Agreement Amendment APPROVALS: Richard Shields Completed 11/20/2012 11:11 AM City Attorney Completed 11/20/2012 11:26 AM City Manager Completed 11/20/2012 11:36 AM City Council Pending 3.C Packet Pg. 15 AMENDMENT TO THE PROFESSIONAL SERVICE AGREEMENT ENTERED INTO ON MARCH 13 2012. THIS AMENDMENT TO THE PROFESSIONAL SERVICE AGREEMENT ("Amendment") is made and entered into this 27 th day of November 2012. ("Effective Date") by and between the SUCCESSOR AGENCY FOR THE GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY ("Successor Agency"), a public entity, and ALBERT A. WEBB ASSOCIATES INCORPORATED, ("Professional") a California Corporation. RECITALS WHEREAS, on January 10, 2012, the City of Grand Terrace ("City") elected to become the Successor Agency of the Grand Terrace Community Redevelopment Agency; WHEREAS, prior to the passage of Assembly Bill No. 1484, then-existing law was unclear as to whether the City and Successor Agency were separate and legally distinct entities; WHEREAS, the City, in its capacity as the Successor Agency, entered into an agreement for Professional Services with Professional on March 13, 2012 ("Agreement"); WHEREAS, after the passage of Assembly Bill No. 1484, Health & Safety Code § 34173 was amended to clarify the status of and establish the Successor Agency as a separate legal entity that is separate and distinct from the City; WHEREAS, because of the aforementioned clarifying language in Assembly Bill No. 1484, the Successor Agency and Professional are the appropriate parties to amend the Agreement. NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby amend the Agreement as follows: 1. Parties. In light of recently adopted Health & Safety Code § 34173(g), the parties agree that wherever the Agreement refers to the "City of Grand Terrace," it is amended so that it refers to the "Successor Agency of the Grand Terrace Redevelopment Agency." The parties further agree that this Amendment to the Agreement clarifies the original intent of the parties at the time of execution of the Agreement in that such intent was for the City to enter into the Agreement in its capacity as the Successor Agency in the manner now contemplated by Health & Safety Code § 34173(g). 3.C.a Packet Pg. 16 At t a c h m e n t : P r o f e s s i o n a l S e r v i c e s A g r e e m e n t A m e n d m e n t ( 1 1 7 0 : A m e n d m e n t E x t e n d i n g P r o f e s s i n a l S e r v i c e A g r e e m e n t w i t h A l b e r t A . W e b b 2.Amendment to Notice Requirements. Paragraph 4 "Notices" of the Agreement is modified in the following manner: 4. Notices. Any notices required to be given hereunder shall be in writing and shall be personally served or given by mail. Any notice given by shall be deemed given when deposited in the United States Mail, certified and postage prepaid, addressed to the party to be served as follows: To the Successor Agency for the Grand Terrace Community Redevelopment Agency: Successor Agency for the Grand Terrace Community Redevelopment Agency 22795 Barton Rd. Bldg. B Grand Terrace, CA 92313 To Albert A. Webb Associates, Inc.: Albert A. Webb Associates, Inc. 3788 McCray Street Riverside, CA 92506 3.Extension of Term. Paragraph 2 "Term" of the Agreement is amended in the following manner: 2. Term. This Agreement shall be effective on the date first written above unless otherwise provided in Exhibit "A" Scope of Services. The Agreement shall remain in effect until the Services to be performed under Exhibit "A" are completed, until December 31, 2013, or the Agreement is terminated pursuant to the provisions provided herein; whichever event occurring sooner. 4.Redevelopment Dissolution Disclaimer. Professional acknowledges and agrees that the Successor Agency's approval of this Amendment is subject to a number of legal requirements which may include but not limited to approvals by the California Department of Finance, the Oversight Board for the Successor Agency, and County of San Bernardino ("ABX1 26 Approvals") in order to make this Amendment effective. Professional acknowledges and agrees that the Successor Agency and the City of Grand Terrace has no control over ABX1 26 Approvals. Professional hereby acknowledges and agrees that it will not bring any claims, demands, suits, actions or proceedings of any kind or nature against the Successor Agency, City of Grand Terrace, and either of their respective agents, employees, consultants or volunteers related to ABX1 26 Approvals as it relates to this Amendment. 3.C.a Packet Pg. 17 At t a c h m e n t : P r o f e s s i o n a l S e r v i c e s A g r e e m e n t A m e n d m e n t ( 1 1 7 0 : A m e n d m e n t E x t e n d i n g P r o f e s s i n a l S e r v i c e A g r e e m e n t w i t h A l b e r t A . W e b b IN WITNESS WHEREOF, Successor Agency and Professional have caused this Agreement to be duly executed the day and year above written. The Successor Agency to the Grand Albert A. Webb Associates Incorporated Terrace Community Redevelopment Agency, A Public Entity ArA Betsy M. Adams Executive Director ATTEST: Tracey Martinez Secretary of the Board APPROVED AS TO FORM: Richard L. Adams, II Successor Agency Counsel SHE7/1 Print Name Di a fa- e) Title 3.C.a Packet Pg. 18 At t a c h m e n t : P r o f e s s i o n a l S e r v i c e s A g r e e m e n t A m e n d m e n t ( 1 1 7 0 : A m e n d m e n t E x t e n d i n g P r o f e s s i n a l S e r v i c e A g r e e m e n t w i t h A l b e r t A . W e b b 3.C.a Packet Pg. 19 At t a c h m e n t : P r o f e s s i o n a l S e r v i c e s A g r e e m e n t A m e n d m e n t ( 1 1 7 0 : A m e n d m e n t E x t e n d i n g P r o f e s s i n a l S e r v i c e A g r e e m e n t w i t h A l b e r t A . W e b b 3.C.a Packet Pg. 20 At t a c h m e n t : P r o f e s s i o n a l S e r v i c e s A g r e e m e n t A m e n d m e n t ( 1 1 7 0 : A m e n d m e n t E x t e n d i n g P r o f e s s i n a l S e r v i c e A g r e e m e n t w i t h A l b e r t A . W e b b 3.C.a Packet Pg. 21 At t a c h m e n t : P r o f e s s i o n a l S e r v i c e s A g r e e m e n t A m e n d m e n t ( 1 1 7 0 : A m e n d m e n t E x t e n d i n g P r o f e s s i n a l S e r v i c e A g r e e m e n t w i t h A l b e r t A . W e b b 3.C.a Packet Pg. 22 At t a c h m e n t : P r o f e s s i o n a l S e r v i c e s A g r e e m e n t A m e n d m e n t ( 1 1 7 0 : A m e n d m e n t E x t e n d i n g P r o f e s s i n a l S e r v i c e A g r e e m e n t w i t h A l b e r t A . W e b b 3.C.a Packet Pg. 23 At t a c h m e n t : P r o f e s s i o n a l S e r v i c e s A g r e e m e n t A m e n d m e n t ( 1 1 7 0 : A m e n d m e n t E x t e n d i n g P r o f e s s i n a l S e r v i c e A g r e e m e n t w i t h A l b e r t A . W e b b 3.C.a Packet Pg. 24 At t a c h m e n t : P r o f e s s i o n a l S e r v i c e s A g r e e m e n t A m e n d m e n t ( 1 1 7 0 : A m e n d m e n t E x t e n d i n g P r o f e s s i n a l S e r v i c e A g r e e m e n t w i t h A l b e r t A . W e b b 3.C.a Packet Pg. 25 At t a c h m e n t : P r o f e s s i o n a l S e r v i c e s A g r e e m e n t A m e n d m e n t ( 1 1 7 0 : A m e n d m e n t E x t e n d i n g P r o f e s s i n a l S e r v i c e A g r e e m e n t w i t h A l b e r t A . W e b b 3.C.a Packet Pg. 26 At t a c h m e n t : P r o f e s s i o n a l S e r v i c e s A g r e e m e n t A m e n d m e n t ( 1 1 7 0 : A m e n d m e n t E x t e n d i n g P r o f e s s i n a l S e r v i c e A g r e e m e n t w i t h A l b e r t A . W e b b 3.C.a Packet Pg. 27 At t a c h m e n t : P r o f e s s i o n a l S e r v i c e s A g r e e m e n t A m e n d m e n t ( 1 1 7 0 : A m e n d m e n t E x t e n d i n g P r o f e s s i n a l S e r v i c e A g r e e m e n t w i t h A l b e r t A . W e b b 3.C.a Packet Pg. 28 At t a c h m e n t : P r o f e s s i o n a l S e r v i c e s A g r e e m e n t A m e n d m e n t ( 1 1 7 0 : A m e n d m e n t E x t e n d i n g P r o f e s s i n a l S e r v i c e A g r e e m e n t w i t h A l b e r t A . W e b b AGENDA REPORT MEETING DATE:November 27, 2012 Council Item TITLE:Repeal Municipal Code Chapter 3.24 and Adopt New Chapter 3.24 as the City's Purchasing System PRESENTED BY:Betsy Adams, City Manager RECOMMENDATION:Adopt 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 proposed Ordinance for a new Chapter 3.24, Purchasing System, was introduced at the Council Meeting on November 13, 2012. No changes were made to the proposed Purchasing Ordinance. DISCUSSION: The Proposed Purchasing Ordinance is based on a model recommended by the City Attorney to replace the existing Purchasing Ordinance which is outdated. 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 level 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 Purchasing Ordinance is adopted the Finance Department will update the City’s purchasing procedures, as needed. 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 of bid requests developed and issued which would free up staff time for other work assignments. ATTACHMENTS: ·Attachment 1_Current Chapter 3.24 ·Attachment 2_Proposed Chapter 3 7.A Packet Pg. 29 APPROVALS: Betsy Adams Completed 11/19/2012 10:57 AM Finance Completed 11/19/2012 11:40 AM City Attorney Completed 11/19/2012 1:14 PM City Manager Completed 11/19/2012 1:16 PM City Council Pending 7.A Packet Pg. 30 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... 7.A.a Packet Pg. 31 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 7 1 : P u r c h a s i n g O r d i n a n c e A d o p t i o n ) 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. 7.A.b Packet Pg. 32 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 7 1 : P u r c h a s i n g O r d i n a n c e A d o p t i o n ) 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; 7.A.b Packet Pg. 33 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 7 1 : P u r c h a s i n g O r d i n a n c e A d o p t i o n ) 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. 7.A.b Packet Pg. 34 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 7 1 : P u r c h a s i n g O r d i n a n c e A d o p t i o n ) 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; 7.A.b Packet Pg. 35 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 7 1 : P u r c h a s i n g O r d i n a n c e A d o p t i o n ) 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. 7.A.b Packet Pg. 36 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 7 1 : P u r c h a s i n g O r d i n a n c e A d o p t i o n ) 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 7.A.b Packet Pg. 37 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 7 1 : P u r c h a s i n g O r d i n a n c e A d o p t i o n ) 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 7.A.b Packet Pg. 38 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 7 1 : P u r c h a s i n g O r d i n a n c e A d o p t i o n ) 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. 7.A.b Packet Pg. 39 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 7 1 : P u r c h a s i n g O r d i n a n c e A d o p t i o n ) 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. 7.A.b Packet Pg. 40 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 7 1 : P u r c h a s i n g O r d i n a n c e A d o p t i o n ) 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. 7.A.b Packet Pg. 41 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 7 1 : P u r c h a s i n g O r d i n a n c e A d o p t i o n ) 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 7.A.b Packet Pg. 42 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 7 1 : P u r c h a s i n g O r d i n a n c e A d o p t i o n ) AGENDA REPORT MEETING DATE:November 27, 2012 Successor Agency Item TITLE:Initial Review of Draft "Due Diligence Review" Pertaining to Non-Housing Funds of the Successor Agency of the Community Redevelopment Agency of the City of Grand Terrace Pursuant to the Health and Safety Code PRESENTED BY:Steve Elam, Interim Finance Director RECOMMENDATION:Receive and accept public comment on the draft Due Diligence Review pertaining to non-housing funds of the Successor Agency of the Community Redevelopment Agency of the City of Grand Terrace. BACKGROUND: On June 27, 2012, the Governor signed “clean up legislation” AB 1484 into law. AB 1484 imposes a requirement on successor agencies to use an independent auditor to conduct a Due Diligence Review (DDR) to determine the unobligated balances available for transfer to affected taxing entities, and the recovery and subsequent remittance of funds determined to have been transferred absent an enforceable obligation. The bill authorizes the Department of Finance (DOF) to issue a finding of completion to a successor agency that completes the DDR and meets other requirements. Upon receiving a finding of completion, the bill authorizes the successor agency to participate in a loan repayment program and limited property management activities. DISCUSSION: The DDR is comprised of two parts with different due dates. Part one is a review of the CRA Low/Mod Income Housing Fund (LMIHF), which had a DOF submittal deadline of October 15, 2012. This deadline was met by the Successor Agency and Oversight Board. The DOF issued its findings on the LMIHF DDR November 9, 2012, and a Meet- and-Confer Request on those findings has been submitted to DOF by Successor Agency staff. Part two of the DDR process is a review of the other CRA (non-housing) funds, which must be prepared by December 15, 2012. The Agency’s Oversight Board must then review, approve and transmit the final DDR to the DOF by January 15, 2013. Rogers Anderson Malody Scott, the audit firm conducting the DDR's for the Successor Agency, has issued the attached draft DDR on the other CRA (non-housing) funds. This DDR is subject to Oversight Board review and public comment on December 5, 2012, review and approval by the Oversight Board on December 19, 2012. Further, submittal of the final DDR to the DOF must occur by January 15, 2013. Any revisions to be made to the attached draft report will be reflected in the final DDR to be submitted to the Oversight Board for review and public comment on December 5, 2012. Once the Oversight Board has approved the DDR, it must be submitted to the Department of 8.A Packet Pg. 43 Finance for their final determination. In making its final determination, the Department of Finance has the authority to adjust the amount due. FISCAL IMPACT: Based on the draft DDR, the total Successor Agency non-housing assets exceed the restricted and obligated balances by $1,651,302. Upon final determination by the Department of Finance, this amount will therefore need to be paid to the County Auditor-Controller for disbursement to other taxing entities. Note that in making their final determination, the Department of Finance may adjust this amount. This amount will represent a reduction of Successor Agency funds available to meet its future obligations, but will not impact the City’s general fund. ATTACHMENTS: ·Due Diligence Review_Other Funds_DRAFT APPROVALS: Steve Elam Completed 11/20/2012 7:43 AM Finance Completed 11/20/2012 7:42 AM City Attorney Completed 11/20/2012 10:50 AM City Manager Completed 11/20/2012 11:32 AM City Council Pending 8.A Packet Pg. 44 PURSUANT TO THE STATE OF CALIFORNIA HEALTH AND SAFETY CODE SECTION 34179.5 CITY OF GRAND TERRACE AS THE SUCCESSOR AGENCY OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES DRAFT Subject to Change 8.A.a Packet Pg. 45 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES i TABLE OF CONTENTS Independent Accountant’s Report on Applying Agreed-Upon Procedures ..................................................................... 1 Attachment A: Agreed-Upon Procedures ....................................................................................................................... 2 Attachment 2 . ............................................................................................................................................................... 16 Attachment 4 ................................................................................................................................................................ 17 Attachment 5 ................................................................................................................................................................ 19 Attachment 6 ................................................................................................................................................................ 20 Attachment 7. ................................................................................................................................................................ 22 Attachment 8. ............................................................................................................................................................... 23 Attachment 9 ................................................................................................................................................................ 25 Attachment 10 .............................................................................................................................................................. 26 DRAFT Subject to Change 8.A.a Packet Pg. 46 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) 1 Oversight Board of the Successor Agency for the Community Redevelopment Agency of the City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES We have performed the minimum required agreed-upon procedures enumerated in Attachment “A”, which were agreed to by the Oversight Board of the Successor Agency for the Community Redevelopment Agency of the City of Grand Terrace, the California State Controller’s Office and the State of California Department of Finance (Agencies) solely to assist you in determining All Other Funds unobligated balances available for transfer to taxing entities complying with statutory requirements pursuant to the California Health and Safety Code section 34179.5. Management of the Successor Agency is responsible for the accounting records pertaining to statutory compliance pursuant to Health and Safety Code section 34182(a)(1). This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The scope of this engagement was limited to performing the minimum required agreed- upon procedures as set forth in Attachment “A” along with the findings noted as a result of the procedures performed. We were not engaged to and did not conduct an audit, the objective of which would be the expression of an opinion as to the appropriateness of the results summarized after each procedure in Attachment “A”. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the applicable Agencies, and is not intended to be, and should not be used by anyone other than these specified parties. This restriction is not intended to limit distribution of this report, which is a matter of public record. October XX, 2012 DRAFT Subject to Change 8.A.a Packet Pg. 47 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 2 Purpose: To determine the unobligated balances available for transfer to taxing entities of the Low and Moderate Income Housing Fund. [Health and Safety Code section 34179.5] Citation: 34179.5(c)(1) The dollar value of assets transferred from the former redevelopment agency to the successor agency on or about February 1, 2012. 1. Obtain from the Successor Agency a listing of all assets that were transferred from the former redevelopment agency to the Successor Agency on February 1, 2012. Agree the amounts on this listing to account balances established in the accounting records of the Successor Agency. Identify in the Agreed-Upon Procedures (AUP) report the amount of the assets transferred to the Successor Agency as of that date. Results: We obtained from the Successor Agency a listing of all assets that were transferred from the former redevelopment agency (excluding Low and Moderate Income Housing Fund) to the Successor Agency on February 1, 2012. We agreed the amounts on this listing to account balances established in the accounting records of the Successor Agency. We noted that $35,373,736 in assets were transferred from the former redevelopment agency to the Successor Agency as of February 1, 2012. DRAFT Subject to Change 8.A.a Packet Pg. 48 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 3 Citation: 34179.5(c)(2) The dollar value of assets and cash and cash equivalents transferred after January 1, 2011, through June 30, 2012, by the redevelopment agency or the successor agency to the city, county, or city and county that formed the redevelopment agency and the purpose of each transfer. The review shall provide documentation of any enforceable obligation that required the transfer. 2. If the State Controller’s Office has completed its review of transfers required under both Sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred, perform the following procedures: A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the former redevelopment agency to the city, county, or city and county that formed the redevelopment agency for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency’s enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Results: We obtained a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the former redevelopment agency to the city, county, or city and county that formed the redevelopment agency for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency described the purpose of the transfer and described in what sense the transfer was required by one of the Successor Agency's enforceable obligations or other legal requirements. The State Controller's Office has not completed its review of transfers required under both Sections 34176.5 and 34178.8. Based on the listing of transfers from the former redevelopment agency to the City of Grand Terrace for the period January 1, 2011 through January 31, 2012, we noted three transfers totaling $867,806. See Attachment 2 for listing of transfers. B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the Successor Agency to the city, county, or city and county that formed the redevelopment agency for the period from February 1, 2012 through June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency’s enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Results: According to Successor Agency, there were no transfers from the former redevelopment agency to the City or County for the period from February 1, 2012 through June 30, 2012. C. For each transfer, obtain the legal document that formed the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. Results: We obtained, from the Successor Agency, copies of the Agency resolutions related to the “Improvements to Mount Vernon Avenue” and the “Grand Terrace Road Project.” DRAFT Subject to Change 8.A.a Packet Pg. 49 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 4 Citation: 34179.5(c)(3) The dollar value of any cash or cash equivalents transferred after January 1, 2011, through June 30, 2012, by the redevelopment agency or the successor agency to any other public agency or private party and the purpose of each transfer. The review shall provide documentation of any enforceable obligation that required the transfer. 3. If the State Controller’s Office has completed its review of transfers required under both Sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred, perform the following procedures: A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the former redevelopment agency to any other public agency or to private parties for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency’s enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Results: According to Successor Agency, there were no transfers from the former redevelopment agency to any other public agency or private party for the period from January 1, 2011 through January 31, 2012. B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the Successor Agency to any other public agency or private parties for the period from February 1, 2012 through June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency’s enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Results: According to Successor Agency, there were no transfers from the former redevelopment agency to any other public agency or private party for the period from February 1, 2012 through June 30, 2012. C. For each transfer, obtain the legal document that formed the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. Results: The Successor Agency did not prepare schedules related to procedures 3.A and 3.B, as there are no transfers that met the criteria stated in these procedures, therefore no legal documents were obtained. DRAFT Subject to Change 8.A.a Packet Pg. 50 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 5 Citation: 34179.5(c)(4) The review shall provide expenditure and revenue accounting information and identify transfers and funding sources for the 2010–11 and 2011–12 fiscal years that reconciles balances, assets, and liabilities of the successor agency on June 30, 2012 to those reported to the Controller for the 2009–10 fiscal year. 4. Perform the following procedures: A. Obtain from the Successor Agency a summary of the financial transactions of the Redevelopment Agency and the Successor Agency in the format set forth in the attached schedule for the fiscal periods indicated in the schedule. For purposes of this summary, the financial transactions should be presented using the modified accrual basis of accounting. End of year balances for capital assets (in total) and long-term liabilities (in total) should be presented at the bottom of this summary schedule for information purposes. Results: We obtained from the Successor Agency a summary of the financial transactions of the Redevelopment Agency and the Successor Agency for the fiscal periods requested using the modified accrual basis of accounting. The summary includes the requested long-term liabilities and capital asset information. B. Ascertain that for each period presented the total of revenues, expenditures, and transfers accounts fully for the changes in equity from the previous fiscal period. Results: We agreed the changes in equity to the requisite accounting data. Prior period adjustments account for any variances in the changes in equity between the periods disclosed. C. Compare amounts in the schedule relevant to the fiscal year ended June 30, 2010 to the state controller’s report filed for the Redevelopment Agency for that period. Results: We agreed the stated amounts to the June 30, 2010 State Controller’s Report and noted no variances. D. Compare amounts in the schedule for the other fiscal periods presented to account balances in the accounting records or other supporting schedules. Describe in the report the type of support provided for each fiscal period. Results: We agreed the stated amounts for the year ended June 30, 2011 to the State Controller’s Report for the same period and noted no variances. We agreed the stated amounts for the seven months ended January 31, 2012 and the five months ended June 30, 2012 to the Successor Agency’s trial balances and noted no variances. See Attachment 4 for the summary of financial transactions of the Redevelopment Agency and the Successor Agency. DRAFT Subject to Change 8.A.a Packet Pg. 51 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 6 Citation: 34179.5(c)(5) A separate accounting for the balance for the Low and Moderate Income Housing Fund for all other funds and accounts combined shall be made as follows: (A) A statement of the total value of each fund as of June 30, 2012. 5. Obtain from the Successor Agency a listing of all assets of the Low and Moderate Income Housing Fund as of June 30, 2012 for the report that is due October 1, 2012 and a listing of all assets of all other funds of the Successor Agency as of June 30, 2012 (excluding the previously reported assets of the Low and Moderate Income Housing Fund) for the report that is due December 15, 2012. When this procedure is applied to the Low and Moderate Income Housing Fund, the schedule attached as an exhibit will include only those assets of the Low and Moderate Income Housing Fund that were held by the Successor Agency as of June 30, 2012 and will exclude all assets held by the entity that assumed the housing function previously performed by the former redevelopment agency. Agree the assets so listed to recorded balances reflected in the accounting records of the Successor Agency. The listings should be attached as an exhibit to the appropriate AUP report. Results: We obtained from the Successor Agency a listing of all assets of the “Other” Funds as of June 30, 2012 for the report that is due December 15, 2012. The listing excludes those assets of the Low and Moderate Income Housing Fund that were held by the Successor Agency as of June 30, 2012. We agreed the assets so listed to recorded balances reflected in the accounting records of the Successor Agency. See Attachment 5 for the listing, obtained from the Successor Agency, of assets that were held by the Successor Agency as of June 30, 2012. DRAFT Subject to Change 8.A.a Packet Pg. 52 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 7 Citation: 34179.5(c)(5)(B) An itemized statement listing any amounts that are legally restricted as to purpose and cannot be provided to taxing entities. This could include the proceeds of any bonds, grant funds, or funds provided by other governmental entities that place conditions on their use. 6. Obtain from the Successor Agency a listing of asset balances held on June 30, 2012 that are restricted for the following purposes: A. Unspent bond proceeds: i. Obtain the Successor Agency’s computation of the restricted balances (e.g., total proceeds less eligible project expenditures, amounts set aside for debt service payments, etc.) Results: We obtained a computation of the unspent bond proceeds at June 30, 2012. ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). Results: We agreed the computation to the related client prepared spreadsheets and the bank account balance. iii. Obtain from the Successor Agency a copy of the legal document that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by the Successor Agency as restricted. Results: We obtained a copy of the official statement and noted on page three the purposes for which these bonds were issued. B. Grant proceeds and program income that are restricted by third parties: i. Obtain the Successor Agency’s computation of the restricted balances (e.g., total proceeds less eligible project expenditures). ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). iii. Obtain from the Successor Agency a copy of the grant agreement that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by the Successor Agency as restricted. Results: According to Successor Agency, there were no Grant Proceeds or Program Income held by the Successor Agency at June 30, 2012. C. Other assets considered to be legally restricted: i. Obtain the Successor Agency’s computation of the restricted balances (e.g., total proceeds less eligible project expenditures). Results: We obtained a computation of the restricted balances at June 30, 2012. ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). Results: We agreed the computation to the related account balances and fiscal agent bank statements at June 30, 2012. DRAFT Subject to Change 8.A.a Packet Pg. 53 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 8 iii. Obtain from the Successor Agency a copy of the legal document that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by Successor the Agency as restricted. Results: We obtained a copy of the official statements for each bond issue and agreed the required reserve amount to the amount held by the fiscal agents at June 30, 2012 and noted no variances. The bond reserve amounts are a required part of the bond issue. D. Attach the above mentioned Successor Agency prepared schedule(s) as an exhibit to the AUP report. For each restriction identified on these schedules, indicate in the report the period of time for which the restrictions are in effect. If the restrictions are in effect until the related assets are expended for their intended purpose, this should be indicated in the report. Results: See Attachment 6 for the listing restricted assets at June 30, 2012. The intended purpose language is included on the listing. DRAFT Subject to Change 8.A.a Packet Pg. 54 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 9 Citation: 34179.5(c)(5)(C) An itemized statement of the values of any assets that are not cash or cash equivalents. This may include physical assets, land, records, and equipment. For the purpose of this accounting, physical assets may be valued at purchase cost or at any recently estimated market value. The statement shall list separately housing-related assets. 7. Perform the following procedures: A. Obtain from the Successor Agency a listing of assets as of June 30, 2012 that are not liquid or otherwise available for distribution (such as capital assets, land held for resale, long-term receivables, etc.) and ascertain if the values are listed at either purchase cost (based on book value reflected in the accounting records of the Successor Agency) or market value as recently estimated by the Successor Agency. Results: We obtained from the Successor Agency a listing of assets as of June 30, 2012 that are not liquid or otherwise available for distribution. We noted that $8,073,295 of assets at June 30, 2012 were not liquid or otherwise available for distribution. The assets as stated are based on book value as reflected in the accounting records of the Successor Agency. See Attachment 7 for listing of assets obtained from the Successor Agency. B. If the assets listed at 7(A) are listed at purchase cost, trace the amounts to a previously audited financial statement (or to the accounting records of the Successor Agency) and note any differences. Results: We traced the amount to the Successor Agency’s accounting records noting no differences. C. For any differences noted in 7(B), inspect evidence of disposal of the asset and ascertain that the proceeds were deposited into the Successor Agency trust fund. If the differences are due to additions (this generally is not expected to occur), inspect the supporting documentation and note the circumstances. Results: We noted a piece of land was purchased using bond proceeds. The Agency Board approved the purchase of the land on June 14, 2011. We obtained a copy of the Agency minutes for June 14, 2011 and a copy of the purchase agreement. D. If the assets listed at 7(A) are listed at recently estimated market value, inspect the evidence (if any) supporting the value and note the methodology used. If no evidence is available to support the value and/or methodology, note the lack of evidence. Results: Procedure 7(D) is not applicable since the assets identified in procedure 7(A) are not listed at estimated market value. DRAFT Subject to Change 8.A.a Packet Pg. 55 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 10 Citation: 34179.5(c)(5)(D) An itemized listing of any current balances that are legally or contractually dedicated or restricted for the funding of an enforceable obligation that identifies the nature of the dedication or restriction and the specific enforceable obligation. In addition, the successor agency shall provide a listing of all approved enforceable obligations that includes a projection of annual spending requirements to satisfy each obligation and a projection of annual revenues available to fund those requirements. If a review finds that future revenues together with dedicated or restricted balances are insufficient to fund future obligations and thus retention of current balances is required, it shall identify the amount of current balances necessary for retention. The review shall also detail the projected property tax revenues and other general purpose revenues to be received by the successor agency, together with both the amount and timing of the bond debt service payments of the successor agency, for the period in which the oversight board anticipates the successor agency will have insufficient property tax revenue to pay the specified obligations. 8. Perform the following procedures: A. If the Successor Agency believes that asset balances need to be retained to satisfy enforceable obligations, obtain from the Successor Agency an itemized schedule of asset balances (resources) as of June 30, 2012 that are dedicated or restricted for the funding of enforceable obligations and perform the following procedures. The schedule should identify the amount dedicated or restricted, the nature of the dedication or restriction, the specific enforceable obligation to which the dedication or restriction relates, and the language in the legal document that is associated with the enforceable obligation that specifies the dedication of existing asset balances toward payment of that obligation. i. Compare all information on the schedule to the legal documents that form the basis for the dedication or restriction of the resource balance in question. Results: The Successor Agency could not provide legal documents with regard to the amounts due to: Rock Bottom for the maintenance of the baseball park in the amount of $10,600 Urban Futures, Inc. for bond compliance in the amount of $3,000 Rosenow Spevacek Group in the amount of $3,133 and The accrued project expenses amounting to $488. ii. Compare all current balances to the amounts reported in the accounting records of the Successor Agency or to an alternative computation. Results: The balances as stated agree to the Successor Agency’s accounting records. iii. Compare the specified enforceable obligations to those that were included in the final Recognized Obligation Payment Schedule approved by the California Department of Finance. Results: The amounts, as stated, were included on the final Recognized Obligation Payment Schedule approved by the California Department of Finance, except for the accrued project expenses of $488 and the remaining balance on the Stater Brothers' contract of $1,044,375. iv. Attach as an exhibit to the report the listing obtained from the Successor Agency. Identify in the report any listed balances for which the Successor Agency was unable to provide appropriate restricting language in the legal document associated with the enforceable obligation. Results: See Attachment 8.A for itemized schedule obtained from the Successor Agency. DRAFT Subject to Change 8.A.a Packet Pg. 56 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 11 B. If the Successor Agency believes that future revenues together with balances dedicated or restricted to an enforceable obligation are insufficient to fund future obligation payments and thus retention of current balances is required, obtain from the Successor Agency a schedule of approved enforceable obligations that includes a projection of the annual spending requirements to satisfy each obligation and a projection of the annual revenues available to fund those requirements and perform the following procedures: i. Compare the enforceable obligations to those that were approved by the California Department of Finance. Procedures to accomplish this may include reviewing the letter from the California Department of Finance approving the Recognized Enforceable Obligation Payment Schedules for the six month period from January 1, 2012 through June 30, 2012 and for the six month period July 1, 2012 through December 31, 2012. ii. Compare the forecasted annual spending requirements to the legal document supporting each enforceable obligation. a. Obtain from the Successor Agency its assumptions relating to the forecasted annual spending requirements and disclose in the report major assumptions associated with the projections. iii. For the forecasted annual revenues: a. Obtain from the Successor Agency its assumptions for the forecasted annual revenues and disclose in the report major assumptions associated with the projections. Results: The Successor Agency believes that future revenues together with balances dedicated or restricted to an enforceable obligation are sufficient to fund approved enforceable obligations. C. If the Successor Agency believes that projected property tax revenues and other general purpose revenues to be received by the Successor Agency are insufficient to pay bond debt service payments (considering both the timing and amount of the related cash flows), obtain from the Successor Agency a schedule demonstrating this insufficiency and apply the following procedures to the information reflected in that schedule. i. Compare the timing and amounts of bond debt service payments to the related bond debt service schedules in the bond agreement. Results: The Successor Agency is retaining amounts sufficient to make the debt service payments required on September 1, 2013. See Attachment 8.C for itemized schedule obtained from the Successor Agency. ii. Obtain the assumptions for the forecasted property tax revenues and disclose major assumptions associated with the projections. Results: The Successor Agency is expecting only to receive tax increment payments twice a year. The timing of these two tax payments does not agree with the debt service requirements. These amounts were approved on ROPS 3. iii. Obtain the assumptions for the forecasted other general purpose revenues and disclose major assumptions associated with the projections. Results The Successor Agency does not anticipate receiving any other general purpose revenues. DRAFT Subject to Change 8.A.a Packet Pg. 57 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 12 D. If procedures A, B, or C were performed, calculate the amount of current unrestricted balances necessary for retention in order to meet the enforceable obligations by performing the following procedures. i. Combine the amount of identified current dedicated or restricted balances and the amount of forecasted annual revenues to arrive at the amount of total resources available to fund enforceable obligations. Results $2,374,856 of the Successor Agency’s Pooled Cash Balance will need to be retained in order to meet the obligations on Schedule 8.A and 8.C. The Successor Agency estimated future annual revenues to be $0. ii. Reduce the amount of total resources available by the amount forecasted for the annual spending requirements. A negative result indicates the amount of current unrestricted balances that needs to be retained. Results As stated above in 8.D.i, $2,374,856 of the Successor Agency’s Pooled Cash Balance will need to be retained in order to meet the obligations on Schedule 8.A and 8.C. iii. Include the calculation in the AUP report. Results According to the Successor Agency, estimated future annual revenue to be received is $0, thus $2,374,856 of the Agency’s Pooled Cash balance at June 30, 2012 will need to be retained to meet the obligations listed on Attachment 8.A and 8.C. DRAFT Subject to Change 8.A.a Packet Pg. 58 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 13 Citation: 34179.5(c)(5)(E) An itemized list and analysis of any amounts of current balances that are needed to satisfy obligations that will be placed on the Recognized Obligation Payment Schedules for the current fiscal year. 9. If the Successor Agency believes that cash balances as of June 30, 2012 need to be retained to satisfy obligations on the Recognized Obligation Payment Schedule (ROPS) for the period of July 1, 2012 through June 30, 2013, obtain a copy of the final ROPS for the period of July 1, 2012 through December 31, 2012 and a copy of the final ROPS for the period January 1, 2013 through June 30, 2013. For each obligation listed on the ROPS, the Successor Agency should add columns identifying (1) any dollar amounts of existing cash that are needed to satisfy that obligation and (2) the Successor Agency’s explanation as to why the Successor Agency believes that such balances are needed to satisfy the obligation. Include this schedule as an attachment to the AUP report. Results: See Attachment 9 for the listing and explanations from the Successor Agency of the Pooled Cash balances that need to be retained and its corresponding enforceable obligation in the ROPS 2 (July 1, 2012 to December 31, 2012) and in the ROPS 3 (January 1, 2013 to June 30, 2013). DRAFT Subject to Change 8.A.a Packet Pg. 59 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 14 Citation: 34179.5(c)(6) The review shall total the net balances available after deducting the total amounts described in subparagraphs (B) to (E), inclusive, of paragraph (5). The review shall add any amounts that were transferred as identified in paragraphs (2) and (3) of subdivision (c) if an enforceable obligation to make that transfer did not exist. The resulting sum shall be available for allocation to affected taxing entities pursuant to Section 34179.6. It shall be a rebuttable presumption that cash and cash equivalent balances available to the successor agency are available and sufficient to disburse the amount determined in this paragraph to taxing entities. If the review finds that there are insufficient cash balances to transfer or that cash or cash equivalents are specifically obligated to the purposes described in subparagraphs (B), (D), and (E) of paragraph (5) in such amounts that there is insufficient cash to provide the full amount determined pursuant to this paragraph, that amount shall be demonstrated in an additional itemized schedule. 10. Include (or present) a schedule detailing the computation of the Balance Available for Allocation to Affected Taxing Entities. Amounts included in the calculation should agree to the results of the procedures performed in each section above. The schedule should also include a deduction to recognize amounts already paid to the County Auditor-Controller on July 12, 2012 as directed by the California Department of Finance. The amount of this deduction presented should be agreed to evidence of payment. The attached example summary schedule may be considered for this purpose. Separate schedules should be completed for the Low and Moderate Income Housing Fund and for all other funds combined (excluding the Low and Moderate Income Housing Fund). Results: We have included (prepared by the Successor Agency) a schedule detailing the computation of the Balance Available for Allocation to Affected Taxing Entities. We agreed amounts included in the calculation to the results of the procedures performed in each section of the report referenced in the calculation. The payments made as directed by the California Department of Finance were agreed to check payments. See Attachment 10 for the complete calculation obtained from Management of the Successor Agency. DRAFT Subject to Change 8.A.a Packet Pg. 60 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment A 15 11. Obtain a representation letter from Successor Agency management acknowledging their responsibility for the data provided to the practitioner and the data presented in the report or in any attachments to the report. Included in the representations should be an acknowledgment that management is not aware of any transfers (as defined by Section 34179.5) from either the former redevelopment agency or the Successor Agency to other parties for the period from January 1, 2011 through June 30, 2012 that have not been properly identified in the AUP report and its related exhibits. Results: We obtained a representation letter dated October XX, 2012 from the Successor Agency’s management acknowledging their responsibility for the data provided to us and the data presented in the report and in all attachments to the report. Included in the representations there is an acknowledgment that management is not aware of any transfers (as defined by Section 34179.5) from either the former redevelopment agency or the Successor Agency to other parties for the period from January 1, 2011 through June 30, 2012 that have not been properly identified in the Agreed-upon procedures report and its related exhibits. DRAFT Subject to Change 8.A.a Packet Pg. 61 At t a c h m e n t : D u e D i l i g e n c e R e v i e w _ O t h e r F u n d s _ D R A F T ( 1 1 7 2 : D r a f t D u e D i l i g e n c e R e v i e w o f S u c c e s s o r A g e n c y N o n - H o u s i n g F u n d s ) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment 2 16 2A. Transfers from former RDA to City/County January 1, 2011 through January 31, 2012 Transfer Transfer Transfer Description Amount Date City/County Required By If Yes, Date Correct Project Funding from City to RDA Findings made by Resolution 2011-01 by the City Council and CRA Board 819,235$ 02/08/2011 City of Grand Terrace Resolution 2011-01 02/08/2011 TSF to Street Capital Project Fund Progress payment - Grand Terrace Road -Proj 21,915 03/31/2011 City of Grand Terrace Resolution 2010-07 07/13/2010 TSF to Street Capital Project Fund Progress payment - Grand Terrace Road -Proj 26,656 06/30/2011 City of Grand Terrace Resolution 2010-07 07/13/2010 867,806$ Enforceable Obligation 2B. Transfers from former RDA to City/County February 1, 2012 through June 30, 2012 Transfer Transfer Transfer Description Amount Date City/County Required By If Yes, Date None -$ - -$ Enforceable Obligation DRAFT Subject to Change 8. A . a Pa c k e t P g . 6 2 Attachment: Due Diligence Review_Other Funds_DRAFT (1172 : Draft Due Diligence Review of Successor Agency Non-Housing Funds) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment 4 17 Redevelopment Redevelopment Redevelopment Successor Agency Agency Agency Agency 12 Months Ended 12 Months Ended 7 Months Ended 5 Months Ended 6/30/2010 6/30/2011 1/31/2012 6/30/2012 Assets (modified accrual basis) Cash and Investments 10,514,562$ 27,797,818$ 24,491,884$ 24,344,057$ Cash with Fiscal Agents 1,300,000 3,068,450 3,057,813 3,057,813 Accounts Receivable 414 423,974 - - Accrued Interest Receivable 10,878 11,443 11,316 11,316 Loans Receivable 90,630 84,087 63,184 63,184 Notes Receivable 5,295,550 4,076,694 3,219,889 3,219,889 Due from Other Funds 37,798 448,636 - - Land Held for Investment 4,087,317 4,087,316 4,842,472 4,842,472 - - - - - - - - Total Assets 21,337,149$ 39,998,418$ 35,686,558$ 35,538,731$ Liabilities (modified accrual basis) Accounts Payable 61,341$ 257,615$ 10,488$ 368,540$ Accrued Liabilities - - - 7,520 Other Liabilities 1,363,165 3,676,186 2,206,067 2,206,067 Deferred Revenue 90,630 84,087 63,184 63,184 Due to Other Funds 37,798 448,636 448,636 - Due to GT Housing Authority - - - 448,636 - - - - - - - - Total Liabilities 1,552,934$ 4,466,524$ 2,728,375$ 3,093,947$ DRAFT Subject to Change 8. A . a Pa c k e t P g . 6 3 Attachment: Due Diligence Review_Other Funds_DRAFT (1172 : Draft Due Diligence Review of Successor Agency Non-Housing Funds) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment 4 (continued) 18 Redevelopment Redevelopment Redevelopment Successor Agency Agency Agency Agency 12 Months Ended 12 Months Ended 7 Months Ended 5 Months Ended 6/30/2010 6/30/2011 1/31/2012 6/30/2012 Equity 19,784,215$ 35,531,894$ 32,958,183$ 32,444,784$ Total Liabilities + Equity 21,337,149$ 39,998,418$ 35,686,558$ 35,538,731$ Total Revenues:9,968,700$ 27,096,660$ 2,488,434$ 2,744,083$ Total Expenditures:11,065,467$ 8,740,389$ 3,141,298$ 3,068,977$ Total Transfers:-$ -$ (1,926,006)$ (188,505)$ Net change in equity (1,096,767)$ 18,356,271$ (2,578,870)$ (513,399)$ Beginning Equity:20,880,982$ 19,784,215$ 35,531,894$ 32,958,183$ Prior Period Adjustment:- (2,608,592) 5,159 - Ending Equity:19,784,215$ 35,531,894$ 32,958,183$ 32,444,784$ Other Information (show year end balances for all three years presented): Capital assets as of end of year - - - - Long-term debt as of end of year 7,674,511 26,672,149 26,672,149 26,672,149 DRAFT Subject to Change 8. A . a Pa c k e t P g . 6 4 Attachment: Due Diligence Review_Other Funds_DRAFT (1172 : Draft Due Diligence Review of Successor Agency Non-Housing Funds) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment 5 19 5. Listing of Asset Detail of CRA Other Funds as of June 30, 2012 ID#Account Name Description GL Total CASH- Pooled Bank of America, Pooled Cash XX-010-00-00 1,018,463$ CASH - Due from Non-Pooled Cash Bank of America, Pooled Cash XX-010-00-00 188,504 CASH - Non- Pooled Bank of America #200, Non-Pooled Cash XX-010-00-00 4,133,255 CASH - Due to Pooled Cash Bank of America #200, Non-Pooled Cash XX-010-00-00 (188,504) CASH WITH FISCAL AGENT US Bank Trustee Accounts XX-010-05-00 3,057,813 INVESTMENTS- Bond Proceeds BOFA-Bond Proceeds -Certificate of Deposits xx-010-10-00 13,000,000 INVESTMENTS LAIF, Other Pooled Investment Accounts xx-010-10-00 5,943,068 INTEREST RECEIVABLE Interest Receivable xx-016-00-00 10,934 Due from City of Grand Terrace-Settlement City of Grand Terrace- Incorrect PT 33-015-25-00 3,219,889 0275-242-11 Land Held for Resale - Reuse 22100 Barton Road -0.40 Ac.- 4/28/09 32-016-55-00 204,915 0275-242-10 Land Held for Resale - Reuse 22100 Barton Road -0.44 Ac.- 10/30/09 32-016-55-00 200,926 0276-202-54 Land Held for Resale - Reuse 22747 Barton Road- .33 Ac.- 1/13/09 32-016-55-00 363,133 0276-462-10 Land Held for Resale - Governmental 22720 Vista Grande - .66 Ac.- 6/09/09 32-016-55-00 62,485 1167-141-08 Land Held for Resale - Reuse W. Commerce Dr and Michigan - 0.93 Ac-10/3/05. 32-016-55-00 245,280 1167-151-61 Land Held for Resale - Reuse 6.74 Ac.- 11/22/00 32-016-55-00 226,355 1167-151-61SE Land Held for Resale - Governmental Baseball field - Pico 2.5 Ac. 11/22/00 32-016-55-00 83,976 1167-151-62 Land Held for Resale - Reuse 8.92 Ac. 11/22/00 32-016-55-00 296,540 1167-151-68 Land Held for Resale - Reuse 14.94 Ac. - Van Buren -11/22/00 32-016-55-00 263,607 1167-151-71 Land Held for Resale - Reuse 4.97 Ac. -11/22/00 32-016-55-00 175,373 1167-151-73 Land Held for Resale - Reuse .44 Ac - 11/22/00 32-016-55-00 14,907 1167-161-03 Land Held for Resale - Reuse 21992 De Berry St. 8/19/05 32-016-55-00 899,953 1167-161-04 Land Held for Resale - Reuse 21974 De Berry St. 7/21/05 32-016-55-00 409,701 1167-151-22 Land Held for Resale - Reuse 14.2 Acr. - 7/29/11 32-016-55-00 1,395,321 35,225,894$ Asset Information DRAFT Subject to Change 8. A . a Pa c k e t P g . 6 5 Attachment: Due Diligence Review_Other Funds_DRAFT (1172 : Draft Due Diligence Review of Successor Agency Non-Housing Funds) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment 6 20 6A. Listing of Unspent Bond Proceeds as of June 30, 2012 GL Total 2011A & B - Tax Allocation Bond - Proceeds Cash - Bank of America #200 32-010-00-00 4,133,255$ Proceeds due to Capital Project Bond Proceeds Fund (50)-Michigan/Storm Prj 32-010-00-00 (188,504) 2011A & B - Tax Allocation Bond - Proceeds Investmt.-BOF CD #6924 32-010-10-00 1,000,000 2011A & B - Tax Allocation Bond - Proceeds Investmt.-BOF CD #6925 32-010-10-00 2,000,000 2011A & B - Tax Allocation Bond - Proceeds Investmt.-BOF CD #6926 32-010-10-00 2,000,000 2011A & B - Tax Allocation Bond - Proceeds Investmt.-BOF CD #6927 32-010-10-00 2,000,000 2011A & B - Tax Allocation Bond - Proceeds Investmt.-BOF CD #6928 32-010-10-00 2,000,000 2011A & B - Tax Allocation Bond - Proceeds Investmt.-BOF CD #6929 32-010-10-00 2,000,000 2011A & B - Tax Allocation Bond - Proceeds Investmt.-BOF CD #6930 32-010-10-00 2,000,000 16,944,751$ The restrictions on the usage of these bond proceeds are in effect until the related assets are expended for their intended purpose. Asset Description DRAFT Subject to Change 8. A . a Pa c k e t P g . 6 6 Attachment: Due Diligence Review_Other Funds_DRAFT (1172 : Draft Due Diligence Review of Successor Agency Non-Housing Funds) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment 6 (continued) 21 6B. Listing of Grant Proceeds and Program Income Restricted by Third Parties as of June 30, 2012 GL Total None -$ 6C. Listing of Other Assets Considered to be Legally Restricted as of June 30, 2012 GL Total Cash With Fiscal Agent -2004 TABS Reserve Account held by Trustee 33‐010‐05‐00  1,300,000$ Cash With Fiscal Agent -2011 A & B TABS Reserve Account held by Trustee 33‐010‐05‐00  1,757,813 3,057,813$ The restrictions on the usage of these bond proceeds are in effect until the related assets are expended for their intended purpose. Asset Description ASSET DESCRIPTION DRAFT Subject to Change 8. A . a Pa c k e t P g . 6 7 Attachment: Due Diligence Review_Other Funds_DRAFT (1172 : Draft Due Diligence Review of Successor Agency Non-Housing Funds) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment 7 22 7. Listing of Assets of CRA Other Funds that are not Cash or Cash Equivalents at June 30, 2012 ID#Account Name Description GL Total Accrued Investment Earnings Accrued Investment Earnings 32-016-00-00 7,278$ Accrued Investment Earnings Accrued Investment Earnings 33-016-50-00 3,656 Due from City of Grand Terrace Settlement City of Grand Terrace- Incorrect PT 33-015-25-00 3,219,889 0275-242-11 Land Held for Resale - Reuse 22100 Barton Road -0.40 Ac.- 4/28/09 32-016-55-00 204,915 0275-242-10 Land Held for Resale - Reuse 22100 Barton Road -0.44 Ac.- 10/30/09 32-016-55-00 200,926 0276-202-54 Land Held for Resale - Reuse 22747 Barton Road- .33 Ac.- 1/13/09 32-016-55-00 363,133 0276-462-10 Land Held for Resale - Governmental 22720 Vista Grande - .66 Ac.- 6/09/09 32-016-55-00 62,485 1167-141-08 Land Held for Resale - Reuse W. Commerce Dr and Michigan - 0.93 Ac-10/3/05 32-016-55-00 245,280 1167-151-61 Land Held for Resale - Reuse 6.74 Ac.- 11/22/00 32-016-55-00 226,355 1167-151-61SE Land Held for Resale - Governmental Baseball field - Pico 2.5 Ac. 11/22/00 32-016-55-00 83,976 1167-151-62 Land Held for Resale - Reuse 8.92 Ac. 11/22/00 32-016-55-00 296,540 1167-151-68 Land Held for Resale - Reuse 14.94 Ac. - Van Buren -11/22/00 32-016-55-00 263,607 1167-151-71 Land Held for Resale - Reuse 4.97 Ac. -11/22/00 32-016-55-00 175,373 1167-151-73 Land Held for Resale - Reuse .44 Ac - 11/22/00 32-016-55-00 14,907 1167-161-03 Land Held for Resale - Reuse 21992 De Berry St. 8/19/05 32-016-55-00 899,953 1167-161-04 Land Held for Resale - Reuse 21974 De Berry St. 7/21/05 32-016-55-00 409,701 1167-151-22 Land Held for Resale - Reuse 14.2 Acr. - 7/29/11 32-016-55-00 1,395,321 8,073,295$ Asset Information DRAFT Subject to Change 8. A . a Pa c k e t P g . 6 8 Attachment: Due Diligence Review_Other Funds_DRAFT (1172 : Draft Due Diligence Review of Successor Agency Non-Housing Funds) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment 8 23 8A. Listing of Asset Balances Needed to be Retained to Satisfy Enforceable Obligations of June 30, 2012 Assets to be retained Cash Justification Enforceable Obligation in order to fund obligations GL Total Projects and Wind Down Costs Approved Obligation under ROPS 1,2,3 Balance due under contract subject to participant meeting benchmark goals Stater Bros. OPA ; Contract Balance Due Cash - Bank of America- Pooled Cash 37-010-00-00 1,044,375$ Accounts payable- installment due payable after June 30, 2012, as Approved under ROPS 1,2,3 A/P- Stater Bros. OPA - Invoice 07032012 due and payable after 6/30/12 Cash - Bank of America- Pooled Cash 37-010-10-00 163,125 Accounts payable- installment due payable after June 30, 2012, as Approved under ROPS 1,2,3 Jones & Mayer -legal services contract for wind down -Invoice 59724 & 59726-Legal Cash - Bank of America- Pooled Cash 32-010-00-00 8,070 A/P - Project Payment due and payable after June 30, 2012 Rock Bottom- Ball Park-Contract Approved on ROPS 1,2 Invoice # PW-06-10-7 Cash - Bank of America- Pooled Cash 32-010-00-00 10,600 A/P - Project Payment due and payable after June 30, 2012 Accrued Expend-32-021-30-00 Cash - Bank of America- Pooled Cash 32-010-00-00 488 A/P - Project Payment due and payable after June 30, 2012 p S.E.C. Rule 15-c2-12 Bond Compliance Requirement Invoice 210416 due June 30, 2012 Cash - Bank of America- Pooled Cash 33-010-00-00 3,000 Administrative Costs Administrative Employee costs through 6/30/2012, payable after June 30, 2012 Accrued Employee Payroll and Payroll expenses at 6-30-2012 in Acct# -32-022-30-00 Approved under ROPS Administrative Costs Cash - Bank of America- Pooled Cash 32-010-00-00 7,032 A/P - Project Payment due and payable after June 30, 2012 RSG-Tax Increment Administration 6-30-12; Invoice 0028339 Approved under ROPS Administrative Costs Cash - Bank of America- Pooled Cash 33-010-00-00 3,133 Subtotal 1,239,823$ DRAFT Subject to Change 8. A . a Pa c k e t P g . 6 9 Attachment: Due Diligence Review_Other Funds_DRAFT (1172 : Draft Due Diligence Review of Successor Agency Non-Housing Funds) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment 8 (continued) 24 8B. Listing of Future Revenues together with Dedicated or Restricted to Enforceable Obligation Insufficient as of June 30, 2012 Asset Description GL Total None Subtotal -$ 8C. Listing of Future Revenues Insufficient to Pay for Bond Debt Service as of June 30, 2012 Asset Description GL Total 2011 A - TABS Reserve (ROPS-3. LN.26) Reserve as per H&S 34171(d)(1)(A) 33-010-00-00 698,298$ 2012 B - TABS Reserve (ROPS-3, LN.27) Reserve as per H&S 34171(d)(1)(A) 33-010-00-00 436,735 Subtotal 1,135,033$ DRAFT Subject to Change 8. A . a Pa c k e t P g . 7 0 Attachment: Due Diligence Review_Other Funds_DRAFT (1172 : Draft Due Diligence Review of Successor Agency Non-Housing Funds) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment 9 25 9. Cash Balances Needed to be Retained as of June 30, 2012: for ROPS 2 - July 1, 2012 to December 31, 2012 and ROPS 3- Jan. 1, 2013 to June 30, 2013. # Approved Under ROPS Debt Obligation Obligation Date Payee Description ROPS Funding Source G/LAcct Cash Needed to be Retained to Satisfy Obligations 1) 2 2004 Tax Allocation Bonds 2004 US Bank Debt Service on 2004 CRA Tax Alloc BondsDue 8/1/12 RPTTF 33-010-10-00 PooledInvestments 666,188$ 2) 2 2011 A Tax Allocation Bond 2011 US Bank Debt Service on 2011 CRA Tax Alloc BondsDue 8/1/12 RPTTF 33-010-10-00 PooledInvestments 680,898 3) 2 2011 B Tax Allocation Bond 2011 US Bank Debt Service on 2011 CRA Tax Alloc BondsDue 8/1/12 RPTTF 33-010-10-00 PooledInvestments 429,545 4) 2 Trustee Fees 2004/2011 Indenture US Bank Trustee Services for 2004 & 2011 TABSRequired under bond indenture RPTTF 33-010-10-00 PooledInvestments 12,115 5) 2 Zion Loan 2009 Zion First National Bank Private Refunding of CRA Debt RPTTF 33-010-10-00 PooledInvestments 127,424 8) 2 Agency Attorney 9/27/2011 Jones and Mayer Successor Agency Legal consulting RPTTF 33-010-10-00 PooledInvestments 30,000 11) 2 Consulting Services Ongoing RSG Annual reporting requirements/administration RPTTF 33-010-10-00 PooledInvestments 25,000 12) 2 Consulting Services Ongoing City News Group Advertising/Noticing RPTTF 33-010-10-00 PooledInvestments 11,565 13) 2 Consulting Services Purchase Order Smothers Appraisers Property Appraisals RPTTF 33-010-10-00 PooledInvestments 13,400 14) 2 Consulting Services 4/12/2011 ACE Weed Abatement Weed abatement for Agency property RPTTF 33-010-10-00 PooledInvestments 20,000 15) 2 Consulting Services 7/13/2010 Chamber of Commerce Business development services RPTTF 33-010-10-00 PooledInvestments 5,160 16) 2 Consulting Services 2004/2011 Indenture Urban Futures Continuing Disclosure Reporting- bond issues RPTTF 33-010-10-00 PooledInvestments 3,500 17) 2 Agency Owned Property Various Various contractors Property Maintenance and Insurance RPTTF 33-010-10-00 PooledInvestments 3,000 18) 2 Annual Audit and Reporting Ongoing Rogers Anderson Malody Required annual auditing services RPTTF 33-010-10-00 PooledInvestments 7,500 19) 2 Professional Services Ongoing Contractors Prof Svcs-Agency Dissolution-Oversight RPTTF 33-010-10-00 PooledInvestments 50,000 20) 2 Professional Services Ongoing Special Counsel Oversight Board Legal Consulting RPTTF 33-010-10-00 PooledInvestments 17,500 21) 2 Professional Services 2/23/10 ongoing HDL Property tax allocation reconciliation RPTTF 33-010-10-00 PooledInvestments 8,000 C-24 2 Administrative Expensesclaimed for ROPS -2 period Various and ongoing Agency - Employee Costs Administrative costs 7/1/12 to 12/31/12 RPTTF 33-010-10-00 PooledInvestments 107,500 C-25 2 Administrative Expensesclaimed for ROPS -2 period Various and ongoing Agency - Employee Costs - PERS Administrative costs 7/1/12 to 12/31/13 RPTTF 33-010-10-00 PooledInvestments 19,536 C-26 2 Administrative Expensesclaimed for ROPS -2 period Various and ongoing Agency - Costs Overhead Alloc.Administrative costs 7/1/12 to 12/31/14 RPTTF 33-010-10-00 PooledInvestments 160,650 C-27 2 Administrative Expensesclaimed for ROPS -2 period Various and ongoing Agency - Costs Insurance Alloc.Administrative costs 7/1/12 to 12/31/15 RPTTF 33-010-10-00 PooledInvestments 9,360 3 Recognized Obligation Payment Schedule -3"Line J" Prior Period (1/1/12 through 6/30/12) Estimated vs. Actual Payments Successor Agency ROPS 3 - Distribution Due on 1/2/13 will be reduced by "Line J on ROPS -3 Reserve 33-010-10-00 PooledInvestments 496,012 Total 2,903,853$ A. Sufficient cash Needs to be retained to pay ROPS -2 period (7/1/12 to 12/31/12) obligations because the June 1st 2012 distribution from RPTTF was less than the Agency's ROPS -2 period obligations and therefore the deficit would need to be funded by available cash B. ROPS -3 period (1/1/2013 to 6/30/12) with RPTTF to be distributed on approximately January 2, 2013 isrequired under AB 1484 to be adjusted by an amount resulting from the comparison of the Successor Agency actual payments to the estimated payments listed on ROPS -1 period (1/1/2012 to 6/30/2012).Successor Agency has listed $496,012 as the potential decrease to eligible ROPS - 3 obligations and therefore the RPTTF distribution on approximately January 2, 2013 however this amount must be retainedin Successor Agency cash to offset the anticipated RPTTF distribution reduction on January 2, 2013. Note: ROPS -2 Obligations have been reduced if the Agency is aware of updated costs that are now lower. Cash must be retained by Agency because Prior Period Adjustment on ROPS 3 will reduce the funds distributed to Agency to pay for ROPS 3 listed obligations. Due to distribution of tax allocation only twice a year, early tax collection period cut-off by SB A-C and unpredictable costs such as pass-through and county admin costs, Agency needs to retain sufficient cash necessary to pay obligations becoming due, through ROPS 2 period ending 12/31/12.June 1, 2012 distribution resulted in a $2,620,371 DEFICIT in available RPTTF. Agency needs to retain sufficient cash necessary to pay obligations becoming due, through ROPS 2 period ending 12/31/12.June 1, 2012 distribution resulted in a $2,620,371 DEFICIT in available RPTTF. Because this analysis is cash as of 6/30/12 and due to distribution of tax allocation only twice a year, agency needs to retain sufficient cash necessary to pay bond debt service due, as allowed by H & S 34171(d)(1)(A). Reason Cash Needs to be Retained by Successor Agency DRAFT Subject to Change 8. A . a Pa c k e t P g . 7 1 Attachment: Due Diligence Review_Other Funds_DRAFT (1172 : Draft Due Diligence Review of Successor Agency Non-Housing Funds) COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 ALL OTHER FUNDS AGREED-UPON PROCEDURES Attachment 10 26 Grand Terrace Other Successor Agency Funds (Non-Housing) SUMMARY OF BALANCES AVAILABLE FOR ALLOCATION TO AFFECTED TAXING ENTITIES Total Ref Total amount of assets held by the successor agency as of June 30, 2012 (procedure 5) 35,225,894$ Att 5 Add the amount of any assets transferred to the city or other parties for which an enforceable obligation with a third party requiring such transfer and obligating the use of the transferred assets did not exist (procedures 2 and 3)- Att 2 - 3 Less assets legally restricted for uses specified by debt covenants, grant restrictions, or restrictions imposed by other governments (procedure 6)(20,002,564) Att 6A, B & C Less assets that are not cash or cash equivalents (e.g., physical assets) (procedure 7) (8,073,295) Att 7 Less balances that are legally restricted for the funding of an enforceable obligation (net of projected annual revenues available to fund those obligations) (procedure 8) (2,374,856) Att 8A, B & C Less balances needed to satisfy ROPS for the 2012-13 fiscal year (procedure 9) (2,903,853) Att 9 Less the amount of payments made on July 12, 2012 to the County Auditor-Controller as (220,024) directed by the California Department of Finance Amount to be remitted to county for disbursement to taxing entities 1,651,302$ Note that separate computations are required for the Low and Moderate Income Housing Fund held by the Successor Agency and for all other funds held by the Successor Agency. NOTES: For each line shown above, an exhibit should be attached showing the composition of the summarized amount. If the review finds that there are insufficient funds available to provide the full amount due, the cause of the insufficiency should be demonstrated in a separate schedule. DRAFT Subject to Change 8. A . a Pa c k e t P g . 7 2 Attachment: Due Diligence Review_Other Funds_DRAFT (1172 : Draft Due Diligence Review of Successor Agency Non-Housing Funds) AGENDA REPORT MEETING DATE:November 27, 2012 Council Item TITLE:Final Design of the "Service Clubs" Sign Proposed by the Lion's and Women's Club PRESENTED BY:Sandra Molina, Community Development Deputy Director RECOMMENDATION:Approve the final design and encroachment permit for the proposed "Service Club" sign. BACKGROUND: On June 26, 2012, the City Council approved, in concept, the installation of a sign structure for nationally recognized non-profit service organizations, subject to approval of the final design. The June 26, 2012 agenda report is attached, as Attachment 1. As presented to the Council, the sign is proposed to be installed along Mount Vernon Avenue, where a City sign with the GT Radio sign already exist, thereby replacing it. Included in the June 26th agenda report was a photograph of the corner depicting the existing “Welcome to Grand Terrace” sign that the community sign would be replacing, and a conceptual sketch of the proposed service sign. The sketch showed that the proposed sign would be about eight feet high and would be constructed of 4 inch by 4 inch tubular steel posts, and that GT Radio sign would be placed on the lower rung of the service sign with four spots available for service club seals. The Lion’s and Women’s Clubs, both nationally recognized non-profit groups, would place their seals on the top rung, and the size of the seals would range from a diameter of approximately 15” to 18”. As further stated in the June 26th agenda report, the sign fabrication and installation costs will be covered by the Lion’s and Women’s Clubs. The Lion's and Women's Clubs would be responsible for reviewing and approving requests for use of the lower two seal spaces, and the spaces would be available to nationally recognized non-profit service organizations. DISCUSSION: Lion's Club representative Doug Wilson submitted the construction drawing for the sign, and it is included as Attachment 2. The final design of the sign shows that it is 8 feet high, with the peak of the mountain silhouette projecting to 9 feet in height, and it is 5 feet wide, post to post. City staff met with Lion's Club President David Radtke and Lion's Club member Doug Wilson on November 7, 2012, to discuss the parameters of the sign use, in relation to the approved concept. The Lion’s Club is proposing to change the design concept in relation to the number of service club seals that could be attached to the sign and the type of service clubs that would be allowed to place their club seal on the service sign. 8.B Packet Pg. 73 Number of Service Seals The Lion's Club is proposing to place 3 seals on each rung, and re-configure the GT Radio sign so that it is round, similar to the seals. This would provide spaces for at least 6 seals and up to 8 seals, depending on the size of a re-designed GT Radio sign. However, in discussing this concept with the staff member that worked on the GT Radio station sign placement, it was recommended that the GT Radio sign remain in its present configuration for continuity with other GT Radio signs, and that it be relocated in its entirety. Public Works staff has found a new location for the GT Radio sign on the north side of the intersection. The number of service club seals varies from the design concept previously considered by the City Council on the number of service seals per rung, and for comparison with the original design concept, whether the GT Radio sign is placed on it or not, as shown: With GT Radio Sign Without GT Radio Sign Comment 2 seals per rung 4*6 Fits within interior of sign posts 3 seals per rung 6 9 May overlap slightly onto sign posts depending on width of the service seal *original design concept Type of Service Clubs The design concept approved by the City Council included that the Lion’s and Women’s Clubs would be responsible for reviewing and approving requests for use of the seal spaces, with the understanding that the only nationally recognized non-profit service organizations could have their seals placed on the sign. The Lion’s Club is requesting that the limitation of “nationally recognized” service organizations be removed so that local community organizations could place their seals on the service sign. Should the City Council determine that the limitation of nationally recognized service organizations be removed, the Council should continue to limit the eligible organizations to non-profit service organizations. Encroachment Permit The service sign has been fabricated and is ready for installation. An encroachment permit was submitted by Doug Wilson, on behalf of Fusion Sign and Design sign company (Attachment 3). Upon issuance of the encroachment permit the sign can be installed. An addendum containing the following conditions is recommended to be added to the encroachment permit. Given the long-term commitment by the Lion’s and Women’s Clubs, it is recommended that the President’s of these organizations sign the addendum: 8.B Packet Pg. 74 5.The Lion’s and Women’s Clubs shall be responsible for the ongoing maintenance and upkeep of the service sign, including reviewing and approving requests for use of non-profit service organization seal spaces. 6.A maximum of __ (6 non-profit service organization seals, two per rung, or 9 non-profit service organization seals, three per rung) may be placed on the sign. 7.Service organizations seals placed on the sign structure shall be limited to _____ (nationally-recognized) non-profit service organizations. FISCAL IMPACT: No fiscal impact other than staff time and the waived encroachment permit fee of $58.00 will be incurred. ATTACHMENTS: ·Attachment 1_Service Sign Agenda Report_6.26.2012 ·Attachment 2_Construction Detail ·Attachment 3_Encroachment Permit Application APPROVALS: Sandra Molina Completed 11/13/2012 5:53 PM Finance Completed 11/14/2012 8:15 AM City Attorney Completed 11/19/2012 1:04 PM Community Development Completed 11/19/2012 2:39 PM City Manager Completed 11/19/2012 4:17 PM City Council Pending 8.B Packet Pg. 75 AGENDA REPORT MEETING DATE:June 26, 2012 Council & Successor Agency Item TITLE:Request to Approve in Concept the Installation of a Sign Structure for Recognized Community Service Clubs PRESENTED BY:Joyce Powers, Community and Economic Development Director RECOMMENDATION:Support the concept proposed by the Lion's and Women's Clubs pending approval of the final design and City Encroachment Permit. BACKGROUND: Representatives of the Lion's Club and Women's Club have requested City staff assistance to identify a location for a sign structure on which they could place their national organizational seals. The sign project would be funded by these non-profit service organizations. DISCUSSION: After evaluating the advantages and disadvantages of certain locations at entrances to the City, ease of maintenance, and likelihood of remaining long-term at a particular site, the clubs and staff are recommending the location depicted in Attachment No. 1, where a City sign already exists. The "Welcome to Grand Terrace" message is in place at the Community Sign Board at the corner of Mt. Vernon Avenue and Canal Street as shown in the photo, and this secondary sign would be replaced by the service club sign structure. Attachment No. 2 is a sketch of the proposed sign, which includes placement of the "GT Radio" portion of the existing sign that would be removed. The proposed sign is about eight feet high and would be constructed of 4 inch by 4 inch tubular steel. The Club representatives agree that providing four seal spaces would be sufficient to accommodate the nationally recognized service clubs in the City. The Lion's Club seal is 18 inches in diameter and the Women's Club seal is 15 inches in diameter. The sketch has been prepared to scale and is a good representation of the spacing of the various sign elements. In final design, the mountain silhouette at the top of the sign may become an outline of the mountains or an opaque material to offset it from the Community Sign Board. If the Council agrees with this project and recommended site in concept, staff will return with a final drawing and schedule. An Encroachment Permit is required to allow construction of the sign within the City right-of-way, which will require maintenance of the sign structure and an agreement that the City may remove the sign if work is necessary within the right-of-way. The fee for an Encroachment Permit is $58.00, and 8.A Packet Pg. 246 8.B.a Packet Pg. 76 At t a c h m e n t : A t t a c h m e n t 1 _ S e r v i c e S i g n A g e n d a R e p o r t _ 6 . 2 6 . 2 0 1 2 ( 1 1 6 2 : C o m m u n i t y S e r v i c e C l u b s S i g n ) the Lion's Club has requested a fee waiver. A letter of request from the Women's Club is Attachment No. 3, which describes their objectives and their service projects. The Lion's and Women's Clubs would be responsible for reviewing and approving requests for use of the lower two seal spaces. The spaces would be available to nationally recognized non-profit service organizations. FISCAL IMPACT: This conceptual approval has no fiscal impact other than staff time. In addition, there would be no project costs to the City. ATTACHMENTS: ·Existing Signs at Canal and Mt. Vernon ·Conceptual Service Club Sign ·Letter from Women's Club APPROVALS: Joyce Powers Completed 06/18/2012 11:35 AM Finance Completed 06/19/2012 1:36 PM City Attorney Completed 06/20/2012 8:47 AM Community & Economic Development Completed 06/20/2012 9:03 AM City Manager Completed 06/20/2012 12:15 PM City Council Pending 8.A Packet Pg. 247 8.B.a Packet Pg. 77 At t a c h m e n t : A t t a c h m e n t 1 _ S e r v i c e S i g n A g e n d a R e p o r t _ 6 . 2 6 . 2 0 1 2 ( 1 1 6 2 : C o m m u n i t y S e r v i c e C l u b s S i g n ) 8.A.a Packet Pg. 248 At t a c h m e n t : E x i s t i n g S i g n s a t C a n a l a n d M t . V e r n o n ( 1 0 9 1 : C o m m u n i t y S e r v i c e O r g a n i z a t i o n S i g n ) 8.B.a Packet Pg. 78 At t a c h m e n t : A t t a c h m e n t 1 _ S e r v i c e S i g n A g e n d a R e p o r t _ 6 . 2 6 . 2 0 1 2 ( 1 1 6 2 : C o m m u n i t y S e r v i c e C l u b s S i g n ) X44 MiJ •r• TUNE IN F012 LOCAL AND EMERGENCY INFORMAT ON • 8.A.b Packet Pg. 249 At t a c h m e n t : C o n c e p t u a l S e r v i c e C l u b S i g n ( 1 0 9 1 : C o m m u n i t y S e r v i c e O r g a n i z a t i o n S i g n ) 8.B.a Packet Pg. 79 At t a c h m e n t : A t t a c h m e n t 1 _ S e r v i c e S i g n A g e n d a R e p o r t _ 6 . 2 6 . 2 0 1 2 ( 1 1 6 2 : C o m m u n i t y S e r v i c e C l u b s S i g n ) t/f/47 4;791/477,9147( • YeloN74-4,7 Oe)77147/71- Farce 1. 201'G- et-4 Oj 9nagei iennace 22795 Eantaa Rd. flnaact ?evrace, ea. 92313 eery ectedoecilf-ayee Parvend RS : Inared ?efface 2l/oacarc'd elae gaga Dean cave, 7he 9ncead ?ennace Vascarc'd egad id ease-ear)• to the &try e,...(#teil Awn weird arc to ftat aft awe logo arc 7/Lt Venaaa Are., GM 9-fared ?ennace The *Sleet 4 the 9ncead 7ennace 20aacceo'd chid shall 6e the frraliflathla the literary clad eclacateartal eateneat 4 the foteadeld,ille gest-mat advaaceaceat 4 the eaaracagetry, and the eaaftetatiaa cuit% lemma, State, Veatneet 7ectenateaa 4 ?Vosse,s'a eta. 74 9-1.40,1 ?evectee 7Vaacaa'a eta aged Averaged ea Sot-eaglet 1908 7eciefated unit! the State l 925. 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Ea allceageag the J411,4 et CZAllatti Swag caccanercead to mew &awe era/end, Ina.2,frzetive ceeto areaceend axicc'eh ecdl enable art to helft the ear/ at a greaten level. Seaceeda. Debbie Scvele/Pre,u'deat Incerai 7ennace 700014a1 ela & wte„,i,e„. 8.A.c Packet Pg. 250 At t a c h m e n t : L e t t e r f r o m W o m e n ' s C l u b ( 1 0 9 1 : C o m m u n i t y S e r v i c e O r g a n i z a t i o n S i g n ) 8.B.a Packet Pg. 80 At t a c h m e n t : A t t a c h m e n t 1 _ S e r v i c e S i g n A g e n d a R e p o r t _ 6 . 2 6 . 2 0 1 2 ( 1 1 6 2 : C o m m u n i t y S e r v i c e C l u b s S i g n ) 8.B.b Packet Pg. 81 At t a c h m e n t : A t t a c h m e n t 2 _ C o n s t r u c t i o n D e t a i l ( 1 1 6 2 : C o m m u n i t y S e r v i c e C l u b s S i g n ) 8.B.c Packet Pg. 82 At t a c h m e n t : A t t a c h m e n t 3 _ E n c r o a c h m e n t P e r m i t A p p l i c a t i o n ( 1 1 6 2 : C o m m u n i t y S e r v i c e C l u b s S i g n ) 8.B.c Packet Pg. 83 At t a c h m e n t : A t t a c h m e n t 3 _ E n c r o a c h m e n t P e r m i t A p p l i c a t i o n ( 1 1 6 2 : C o m m u n i t y S e r v i c e C l u b s S i g n ) 8.B.c Packet Pg. 84 At t a c h m e n t : A t t a c h m e n t 3 _ E n c r o a c h m e n t P e r m i t A p p l i c a t i o n ( 1 1 6 2 : C o m m u n i t y S e r v i c e C l u b s S i g n ) AGENDA REPORT MEETING DATE:November 27, 2012 Council Item TITLE:Partnership with Riverside Highland Water District on Grand Terrace Fitness Park Demonstration Garden PRESENTED BY:Sandra Molina, Community Development Deputy Director RECOMMENDATION:Receive and File BACKGROUND: Grand Terrace Fitness Park, wholly funded by a 1.8 Million Dollar grant from the California Department of Parks and Recreation, is expected to be completed in March 2013. The Fitness Park includes tot lots, a tennis/handball court, a fitness trail, and exercise equipment; and in accordance with the grant guidelines the design of the Fitness Park incorporates water efficiency and water quality features. Low water use irrigation heads and plant materials are being used, and storm waters will flow into a bio-swale that naturally filters pollutants from storm waters. Essentially, it is a demonstration garden. As residents walk along the fitness path they will come across different demonstration areas, such as a butterfly walk, ornamental area, native plant walk and a bio-swale area. These areas will show that water efficient gardens can be colorful. Demonstration gardens usually have small signs identifying the different plant material, and larger (interpretive) signs that educate the public on the various features of the garden, i.e. water efficiency and water quality. A restriction of the grant is that grant monies cannot be used for signage related to the demonstration garden. Due to the City’s general fund limitations, staff had hoped to use redevelopment funds; but that is no longer an option. DISCUSSION: In order to explore various funding efforts, City staff approached Riverside Highland Water Company General Manager Don Hough, hoping that the water agency would be interested in a mutually beneficial partnership. The City would provide a fully developed water efficient garden, and RHWC would fund the signs (58 plant identification signs, 4 larger interpretive signs, and one sign recognizing the partnership). Fortunately for the City, the timing was perfect. RHWC recently adopted their new Urban Water Management Plan, which calls for water efficiencies and conservation. A component, of which, is education. The demonstration garden falls right in line with their education efforts. Mr. Hough supported the concept of the partnership and presented it to the Board. In turn, the Board fully supported the partnership. Mr. Hough and staff visited a number of 8.C Packet Pg. 85 demonstration gardens in the area to get an idea of the different types of signs being used, and after that Mr. Hough has taken the lead. He has contacted and visited several sign companies, and investigated their products. The level of commitment and participation has exceeded expectations. The RHWC Board has committed to fund the fabrication and installation of high-quality, highly durable signs, an investment of nearly $20,000. The small plant identification signs will be mini-monuments: concrete bases with etched corian identification plaques (Attachment 1). The larger interpretive signs will be made of a digitally printed laminate panel, and powder coated posts (Attachment 2). Before moving onto the next step of ordering the signs, staff felt it appropriate to inform the City Council of this collaborative effort, and RHWC’s commitment to the demonstration garden. It is anticipated that when Grand Terrace Fitness Park opens in the Spring, it will include a fully signed local demonstration garden that our community can be proud of. FISCAL IMPACT: No fiscal impact other than staff time will be expended. ATTACHMENTS: ·Attachment 1 -Plant Identification Signs ·Attachment 2 -Interpretive sign APPROVALS: Sandra Molina Completed 11/19/2012 11:52 AM Finance Completed 11/20/2012 12:39 PM City Attorney Completed 11/20/2012 12:49 PM Community Development Completed 11/20/2012 2:04 PM City Manager Completed 11/20/2012 3:42 PM City Council Pending 8.C Packet Pg. 86 8.C.a Packet Pg. 87 At t a c h m e n t : A t t a c h m e n t 1 - P l a n t I d e n t i f i c a t i o n S i g n s ( 1 1 6 8 : G r a n d T e r r a c e F i t n e s s P a r k D e m o n s t r a t i o n G a r d e n ) 8.C.a Packet Pg. 88 At t a c h m e n t : A t t a c h m e n t 1 - P l a n t I d e n t i f i c a t i o n S i g n s ( 1 1 6 8 : G r a n d 8.C.b Packet Pg. 89 At t a c h m e n t : A t t a c h m e n t 2 - I n t e r p r e t i v e s i g n ( 1 1 6 8 : G r a n d T e r r a c e F i t n e s s P a r k