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03/19/2013 - SPCITY OF GRAND TERRACE CITY COUNCIL AGENDA • MARCH 19, 2013 Council Chambers Special Meeting 6:00 PM Grand Terrace Civic Center • 22795 Barton Road City of Grand Terrace Page 1 Updated 3/14/2013 12:04 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 with regard to an item on the agenda, 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 during public comment. 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 Pledge of Allegiance Roll Call Attendee Name Present Absent Late Arrived Mayor Walt Stanckiewitz ¨¨¨ Mayor Pro Tem Bernardo Sandoval ¨¨¨ Council Member Darcy McNaboe ¨¨¨ Council Member Jackie Mitchell ¨¨¨ Council Member Sylvia Robles ¨¨¨ 1.ITEMS TO DELETE 2.PUBLIC COMMENT This is the opportunity for members of the public to comment on items on the agenda only. At a special meeting of the City Council, pursuant to California law, the Council will only be taking public comment on items listed on the agenda. 3.UNFINISHED BUSINESS A.Ad Hoc Budget Advisory Committee Agenda Grand Terrace City Council March 19, 2013 City of Grand Terrace Page 2 Updated 3/14/2013 12:04 PM ADJOURN The Next Regular City Council Meeting will be held on Tuesday, March 26, 2013 at 6:00 PM. Agenda item requests must be submitted in writing to the City Clerk’s office no later than 14 calendar days preceding the meeting. AGENDA REPORT MEETING DATE:March 19, 2013 Council Item TITLE:Ad Hoc Budget Advisory Committee PRESENTED BY:Betsy Adams, City Manager RECOMMENDATION:1. Adopt a Resolution to establish an ad hoc Budget Advisory Committee. 2. Approve the application for appointment to the Budget Advisory Committee. BACKGROUND: At the Council Priorities Workshop on February 23, 2013, the idea of establishing a Budget Advisory Committee was discussed. This item was brought forward for formal consideration by the City Council at the Council Meeting of March 12, 2013. At this meeting the Council provided direction to staff numerous items related to this Committee (e.g. ad hoc status, number of committee members, residency requirement, appointment process and timeline) and established a Special Meeting for March 19, 2013 to adopt a Resolution to establish an ad hoc Budget Advisory Committee. DISCUSSION: To establish the ad hoc Budget Advisory Committee the Council will need to adopt the Resolution and then approve the application for appointment to the Committee. Both these documents are included as attachments to this staff report. Two items of note in the Resolution and the application for appointment to the Budget Advisory Committee are summarized below: Scope of Work A detailed scope of work is included as an attachment to the Resolution and on the first page of the narrative for the application. Appointment Process The Council’s process for selecting the applicants who will be appointed to the Budget Advisory Committee has been defined in the Resolution and the application. A ranking sheet has been included as an attachment to the Resolution for the Council to use to make appointments without interviews at the Council Meeting on April 9, 2013. Such appointments will occur when three (3) or more members of the Council have the same applicant listed on his or her respective rating sheet. At this Council Meeting, the members of the Council will provide their respective ranking sheet to the City Clerk who will then report to the Council the applicants who meet the criteria to be appointed that evening. Any openings on the Committee not filled on April 9th, will be filled by the Council at a Special Meeting at 6:00 pm on April 11, 2013 where applicants will be 3.A Packet Pg. 3 interviewed prior to the appointments being made. In addition to these two items, the timeline for the formation of the Budget Advisory Committee and the FY 2013-14 budget process has been updated and is discussed further below. Timeline There are two important dates included in the updated timeline for the formation of the Budget Advisory Committee and the FY 2013-14 budget process. The date of May 30, 2013 has been included as the deadline for the Budget Advisory Committee to provide its written recommendation to City staff so that it can included in the staff report for budget deliberation at the Council Meeting on June 11, 2013. In addition, staff recommends that the Council consider keeping June 18, 2013 available for a Special Meeting devoted to additional budget deliberation. Date Activity March 19 (Tues)Council adopts Resolution establishing Budget Advisory Committee and approves application for appointment to Committee March 20 (Wed)City Clerks advertizes for Budget Advisory Committee vacancies March 28 (Thurs)Applications due to City Clerk April 9 (Tues)Council appoints applicants who are on 3 or more ranking sheets to Budget Advisory Committee April 11 (Thurs)Council interviews remaining applicants and completes appointments to Budget Advisory Committee April 22 (Mon)FY 2013-14 Budget Workshop (mandatory for Budget Advisory Committee members and alternate members to attend) April 25 (Thurs)First Budget Advisory Committee meeting (frequency of subsequent meetings in to be determined by the Committee) May 14 (Tues)Proposed FY 2013-14 budget introduced at Council Meeting May 28 (Tues)First meeting for Council deliberation on proposed FY 2013-14 budget May 30 (Thurs)Deadline for Budget Advisory Committee to provide its written recommendation to City staff for inclusion in staff report for Council budget deliberation on June 11 June 11 (Tues)Second meeting for Council deliberation on proposed FY 2013-14 budget June 18 (Tues)Possible Special Meeting for additional budget deliberation by Council June 25 (Tues)Council adoption of FY 2013-14 budget While not listed on the timeline above, it should be noted that City Hall will close early at 4:00 pm on April 17, 2013 so that employees can be briefed on the Budget Stabilization Plan prior to its public release. It is anticipated that several positions at City Hall could be impacted by one or more of the options for balancing the City’s budget. The 3.A Packet Pg. 4 Oversight Board meeting scheduled for that afternoon will either be cancelled or rescheduled. FISCAL IMPACT: There is no fiscal impact to the City in establishing an ad hoc Budget Advisory Committee. Members of the Budget Advisory Committee will be required to complete a Statement of Economic Interest (Form 700) and provide it to the City Clerk to remain of file in Grand Terrace as a public record. ATTACHMENTS: ·Budget Advisory Committee Application_revised final ·Resolution Establishing Budget Advisory Committee APPROVALS: Betsy Adams Completed 03/14/2013 10:16 AM Finance Completed 03/14/2013 10:43 AM City Attorney Completed 03/15/2013 12:20 PM City Manager Completed 03/18/2013 9:12 AM City Council Pending 3.A Packet Pg. 5 BUDGET ADVISORY COMMITTEE On March 19, 2013, the City Council established the ad hoc Budget Advisory Committee to assist the Council in evaluating alternatives to maintain a balanced budget through budget reductions, revenue enhancements, or a combination of both. The Committee will consist of up to 11 members plus 2 alternate members. The Council desires to have representation from a wide range of community stakeholders on the Budget Advisory Committee. Individuals interested in being appointed to the Committee by the City Council need to complete and submit the attached application to the City Clerk by 5:00 pm on March 28, 2013. The Grand Terrace residency requirement will be waived for any business committee appointee as long as the business is physically located in Grand Terrace and has a current business license on file with the City. The Council will review all applications at the Council Meeting on April 9, 2013. Appointments will be made to the Budget Advisory Committee for all applicants who are on the ranking sheet of three (3) or more members of the Council.To fill any remaining Committee vacancies, the Council will interview applicants at a Special Meeting on April 11, 2013. All Budget Advisory Committee members and alternate members, dues to the fiscal focus and advisory nature of the Committee, are required to complete a Statement of Economic Interests (Form 700) and provide it to the City Clerk to remain on file with the City as a public record. All Budget Advisory Committee members and alternate members will be required to attend the Fiscal Year 2013-14 Budget Workshop Meeting scheduled for 6:00 pm on April 22, 2013. Scope of Work for Budget Advisory Committee A Budget Workshop will be held April 22, 2013, to present comprehensive financial information and a Budget Stabilization Plan to the City Council, which will include the following components: §Projected revenues, expenditures and fund balance for the City’s major funds for the next five years based on current service levels. §Additional budgetary considerations that are needed to mitigate financial risk and/or fund future liabilities. §Options for balancing the budget and addressing any ongoing structural deficit assuming no new revenues are available; i.e., expenditure reductions only. §Incremental revenues needed to: (1) fund current operations (level 1 funding); (2) fund current operations and mitigate risk (level 2 funding); and (3) fund current operations, mitigate risk and enhance services to the community based on identified Council priorities (level 3 funding). §Local tax measures that could be utilized to generate additional revenue at the three funding levels identified. 3.A.a Packet Pg. 6 At t a c h m e n t : B u d g e t A d v i s o r y C o m m i t t e e A p p l i c a t i o n _ r e v i s e d f i n a l [ R e v i s i o n 2 ] ( 1 2 3 2 : A d H o c B u d g e t A d v i s o r y C o m m i t t e e ) BUDGET ADVISORY COMMITTEE §Action plan leading to adoption of the FY 2013-14 budget in June and potential November ballot measure. The work scope for the Budget Advisory Committee will be to evaluate the expenditure reduction and revenue enhancement options as presented in the Budget Stabilization Plan and submit a recommendation to the City Council regarding the option(s) that will be best for the community. The Committee will be required to provide its written recommendation to City staff by May 30, 2013 so that it can be included in the staff report for Council budget deliberations scheduled for June 11, 2013. Budget Information In response to the economic recession, the City has implemented numerous budget and service level reductions in order to maintain a balanced budget. The most significant of these reductions includes the following: §Removed Traffic Deputy from law enforcement services agreement. §Removed Sheriff’s Service Specialist from law enforcement services agreement. §Eliminated Crossing Guard Program. §Outsourced Parks Maintenance and 2/3 of Finance Department staff. §Defunded 17.5 non Child Care positions reducing the City employee workforce at City Hall from 29 positions in FY 2009/10 to 11.5 positions in FY 2012/13 (60.3% reduction). §Suspended employee cost of living adjustments (6 years) and merit increases (5 years); reduced City Hall employee work week from 40 to 36 hours (3 years, 10% reduction in wages); and reduced employee cafeteria benefit by 10% (3 years, City Hall and Child Care employees). On December 29, 2011, the California State Supreme Court upheld the dissolution of redevelopment agencies. The rapid wind-down of the former redevelopment agency placed additional stress upon the City’s budget along with adding extensive reporting requirements and an additional appointed governing body (Oversight Board of the Successor Agency of the City of Grand Terrace Redevelopment Agency) which must review and approve all wind-down activity. The Oversight Board’s actions are then reviewed by the State of California’s Department of Finance (DOF) and the State Controller’s Office. The DOF rejected items in the Successor Agency’s Recognized Obligation Payment Schedule (ROPS) for the period of January 1 through June 30, 2013 which negatively impact the City’s General Fund budget by $737,848 on an on-going basis. The General Fund is the source of funds for all governmental services except those for which special revenue sources are available. The General Fund budget for Fiscal Year (FY)2012-13 is $3.67 million. 3.A.a Packet Pg. 7 At t a c h m e n t : B u d g e t A d v i s o r y C o m m i t t e e A p p l i c a t i o n _ r e v i s e d f i n a l [ R e v i s i o n 2 ] ( 1 2 3 2 : A d H o c B u d g e t A d v i s o r y C o m m i t t e e ) BUDGET ADVISORY COMMITTEE General Information There are several items which the Budget Advisory Committee will need to keep in mind as it assists the City Council in evaluating various budget solutions: ¡The Committee will be required select a Chairperson to conduct committee meetings. ¡All committee meetings will be open to the public and conducted in a manner consistent with the Ralph M. Brown Act. Training will be provided to committee members on this. ¡Members of the City Council or City Staff may attend the Committee meetings. ¡The Committee will be required to prepare minutes from its meetings to be submitted to the City Clerk for inclusion on the City Council’s agenda. ¡The City is a legal sub entity of the State (not the County) and must follow all applicable State and Federal laws/regulations which apply to municipalities including governmental accounting standards which differ significantly from the private sector. ¡The City Council is legally required to adopt a balanced budget prior to the start of the fiscal year (July 1). ¡Funds legally designated for a specific use cannot be expended other than for that purpose. The General Fund is the only fund for which there is much discretion in how the funds can been expended. ¡The proposed budget for FY 2013-14 to be presented at the Budget Workshop meeting on April 22, 2013 will include multiple budget alternatives along with recommendations for establishing reserves. With the dissolution of the City’s former redevelopment agency, creating and funding reserves will be a critical component in the fiscal sustainability of the City. ¡The DOF is currently reviewing the Successor Agency’s ROPS for the period of July 1 through December 31, 2013 and the Due Diligence Review (DDR) for the Successor Agency’s funds other than its affordable housing funds. The DOF is legally required to make its determinations on these items in April. It is possible that the DOF may make determinations which could include additional impacts to the General Fund beyond the $737,848 already identified. 3.A.a Packet Pg. 8 At t a c h m e n t : B u d g e t A d v i s o r y C o m m i t t e e A p p l i c a t i o n _ r e v i s e d f i n a l [ R e v i s i o n 2 ] ( 1 2 3 2 : A d H o c B u d g e t A d v i s o r y C o m m i t t e e ) CITY OF GRAND TERRACE APPLICATION FOR BUDGET ADVISORY COMMITTEE Please complete and submit your application to the City Clerk’s Department by 5:00 pm on March 28, 2013. Indicate in the boxes below if you are applying for appointment to the Committee as a Grand Terrace resident and/or representative of a Grand Terrace business: Resident ¨ Business ¨ Name:________________________________________________________________ Business Name (if applicable):_____________________________________________ Business License Number (if applicable):____________________________________ Address:______________________________________________________________ Telephone Numbers (home, business, cell):__________________________________ Email Address:_________________________________________________________ Occupation:___________________________________________________________ Education (list highest year completed and all degrees): Indicate in the boxes below the evenings you are available for Committee meetings: Monday ¨ Tuesday ¨ Wednesday ¨ Thursday ¨ Indicate below why you are interested in being appointed to the Committee: 3.A.a Packet Pg. 9 At t a c h m e n t : B u d g e t A d v i s o r y C o m m i t t e e A p p l i c a t i o n _ r e v i s e d f i n a l [ R e v i s i o n 2 ] ( 1 2 3 2 : A d H o c B u d g e t A d v i s o r y C o m m i t t e e ) CITY OF GRAND TERRACE APPLICATION FOR BUDGET ADVISORY COMMITTEE Indicate below what you consider to be your major qualifications to serve on the Committee: Provide below there references, indicate whether they are personal or professional references, along with contact information. 1._________________________________________________________________ 2._________________________________________________________________ 3._________________________________________________________________ Please feel free to provide a written statement containing any additional information you feel would be helpful for the City Council when the Committee appointments are considered. 3.A.a Packet Pg. 10 At t a c h m e n t : B u d g e t A d v i s o r y C o m m i t t e e A p p l i c a t i o n _ r e v i s e d f i n a l [ R e v i s i o n 2 ] ( 1 2 3 2 : A d H o c B u d g e t A d v i s o r y C o m m i t t e e ) CITY OF GRAND TERRACE APPLICATION FOR BUDGET ADVISORY COMMITTEE Supplemental written statement: 3.A.a Packet Pg. 11 At t a c h m e n t : B u d g e t A d v i s o r y C o m m i t t e e A p p l i c a t i o n _ r e v i s e d f i n a l [ R e v i s i o n 2 ] ( 1 2 3 2 : A d H o c B u d g e t A d v i s o r y C o m m i t t e e ) RESOLUTION 2013 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE TO ESTABLISH AN AD HOC BUDGET ADVISORY COMMITTEE. WHEREAS,the City Council is legally required to adopt a balanced budget for the subsequent fiscal year by June 30th of the current fiscal year; WHEREAS,the City Council intends to adopt a balance budget for Fiscal Year 2013-14 on June 25, 2013; WHEREAS,the City Council desires to establish a Budget Advisory Committee to assist the Council in evaluating alternatives to maintain a balanced budget for Fiscal Year 2013-14 and subsequent fiscal years through budget reductions, revenue enhancements, or a combination of both; WHEREAS,the City Council desires to establish the Budget Advisory Committee as an ad hoc committee in order to include representatives from the Grand Terrace business community who may not be residents of Grand Terrace; WHEREAS,the term of the ad hoc committee will be from April 11, 2013 through November 6, 2013; WHEREAS,the size of the Budget Advisory Committee will be an odd number of not less than seven (7) members and not greater than eleven (11) members plus two (2) alternate members; WHEREAS,the City Clerk will begin advertising the vacancies on the Budget Advisory Committee on March 20, 2013; WHEREAS,completed applications for the Budget Advisory Committee are due to the City Clerk at 5:00 pm on March 28, 2013; WHEREAS,the City Council will use the attached ranking sheet to appoint applicants to the Budget Advisory Committee on April 9, 2013 who are listed on ranking sheets of three (3) or more members of the Council; WHEREAS,the City Council will interview applicants and appoint any remaining members of the Budget Advisory Committee at a Special Meeting on April 11, 2013; 3.A.b Packet Pg. 12 At t a c h m e n t : R e s o l u t i o n E s t a b l i s h i n g B u d g e t A d v i s o r y C o m m i t t e e ( 1 2 3 2 : A d H o c B u d g e t A d v i s o r y C o m m i t t e e ) WHEREAS,the Budget Advisory Committee members and alternate members must attend the City Council’s Budget Workshop on April 22, 2013; WHEREAS,the City Council desires to establish that the scope of work for the Budget Advisory Committee will be to evaluate the expenditure reduction and revenue enhancement options as presented in the Budget Stabilization Plan at the Budget Workshop on April 22, 2013 and submit a recommendation to the City Council regarding the option(s) that will be best for the community, and as further defined in the scope of work attached to this Resolution; WHEREAS,the Budget Advisory Committee will submit its written recommendation on the expenditure reduction and revenue enhancement options as presented in the Budget Stabilization Plan to City staff by May 30, 2013 for inclusion in the staff report for Council budget deliberation at the Council Meeting of June 11, 2013; WHEREAS,the Budget Advisory Committee will hold its first meeting on April 25, 2013 at 6:30 pm at City Hall in the Community Room and then have the discretion to determine the schedule for all subsequent meetings of the Committee; WHEREAS,the Budget Advisory Committee will elect a Chairperson, Vice Chairperson and Secretary at its first meeting; WHEREAS,all Budget Advisory Committee meetings will be open to the public and conducted in a manner consistent with the Ralph M. Brown Act; WHEREAS,the Secretary of the Budget Advisory Committee will prepare minutes for each meeting and submit a copy to the City Clerk for inclusion in the next Council agenda packet; WHEREAS,the members of the Budget Advisory Committee are encouraged to attend Council Meetings scheduled for deliberation on the budget; NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: Section 1.The City Council hereby finds that all of the above recitals are true and correct and are incorporated herein by reference. 3.A.b Packet Pg. 13 At t a c h m e n t : R e s o l u t i o n E s t a b l i s h i n g B u d g e t A d v i s o r y C o m m i t t e e ( 1 2 3 2 : A d H o c B u d g e t A d v i s o r y C o m m i t t e e ) Section 2.The City Council hereby determines and resolves to establish an ad hoc Budget Advisory Committee with a term from April 11, 2013 through November 6, 2013. Section 3.The City Council hereby authorizes the City Manager to take all actions necessary and required to carry out this Resolution. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a Special Meeting held on the 19th day of March, 2013. ____________________________ Mayor of the City of Grand Terrace and of the City Council thereof. ATTEST: ______________________________ City Clerk of the City of Grand Terrace I TRACEY R. MARTINEZ, CITY CLERK of the City of grand Terrace, do hereby certify that the foregoing Resolution was introduced and adopted at a Special Meeting of the City Council of the City of Grand Terrace held on the 19th day of March, 2013 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________ Tracey R. Martinez, City Clerk 3.A.b Packet Pg. 14 At t a c h m e n t : R e s o l u t i o n E s t a b l i s h i n g B u d g e t A d v i s o r y C o m m i t t e e ( 1 2 3 2 : A d H o c B u d g e t A d v i s o r y C o m m i t t e e ) APPROVED AS TO FORM ______________________________ City Attorney 3.A.b Packet Pg. 15 At t a c h m e n t : R e s o l u t i o n E s t a b l i s h i n g B u d g e t A d v i s o r y C o m m i t t e e ( 1 2 3 2 : A d H o c B u d g e t A d v i s o r y C o m m i t t e e ) City Council Ranking Sheet Budget Advisory Committee Applicants Committee Member Appointments #Name 1 2 3 4 5 6 7 8 9 10 11 Alternate Committee Member Appointments #Name 1 2 Signature:__________________________________________ Date: __________________________ This document is a public record and will be kept on file with the City Clerk. 3.A.b Packet Pg. 16 At t a c h m e n t : R e s o l u t i o n E s t a b l i s h i n g B u d g e t A d v i s o r y C o m m i t t e e ( 1 2 3 2 : A d H o c B u d g e t A d v i s o r y C o m m i t t e e ) Scope of Work for Budget Advisory Committee A Budget Workshop will be held April 22, 2013, to present comprehensive financial information and a Budget Stabilization Plan to the City Council, which will include the following components: ·Projected revenues, expenditures and fund balance for the City’s major funds for the next five years based on current service levels. ·Additional budgetary considerations that are needed to mitigate financial risk and/or fund future liabilities. ·Options for balancing the budget and addressing any ongoing structural deficit assuming no new revenues are available; i.e., expenditure reductions only. ·Incremental revenues needed to: (1) fund current operations (level 1 funding); (2) fund current operations and mitigate risk (level 2 funding); and (3) fund current operations, mitigate risk and enhance services to the community based on identified Council priorities (level 3 funding). ·Local tax measures that could be utilized to generate additional revenue at the three funding levels identified. ·Action plan leading to adoption of the FY 2013-14 budget in June and potential November ballot measure. The work scope for the Budget Advisory Committee will be to evaluate the expenditure reduction and revenue enhancement options as presented in the Budget Stabilization Plan and submit a recommendation to the City Council regarding the option(s) that will be best for the community. 3.A.b Packet Pg. 17 At t a c h m e n t : R e s o l u t i o n E s t a b l i s h i n g B u d g e t A d v i s o r y C o m m i t t e e ( 1 2 3 2 : A d H o c B u d g e t A d v i s o r y C o m m i t t e e )