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05/24/2016CITY OF GRAND TERRACE CITY COUNCIL AGENDA ● MAY 24, 2016 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 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.grandterrace-ca.gov <http://www.grandterrace-ca.gov> CALL TO ORDER Convene City Council Invocation Pledge of Allegiance ROLL CALL Attendee Name Present Absent Late Arrived Mayor Darcy McNaboe    Mayor Pro Tem Sylvia Robles    Council Member Jackie Mitchell    Council Member Doug Wilson    Council Member Bill Hussey    A. SPECIAL PRESENTATIONS – NONE B. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent calendar for discussion. Agenda Grand Terrace City Council May 24, 2016 City of Grand Terrace Page 2 1. Waive Full Reading of Ordinances on Agenda DEPARTMENT: CITY CLERK 2. Approval of Minutes – Regular Meeting – 04/26/2016 DEPARTMENT: CITY CLERK 3. Approval of Check Register No. 04302016 in the Amount of $576,272.07 RECOMMENDATION: Approve Check Register No. 04302016 in the amount $576,272.07, as submitted, which includes the Check Register Account Index for Fiscal Year 2015-16. DEPARTMENT: FINANCE 4. Authority to Apply for grant from CalRecycle Beverage Container Recycling Program RECOMMENDATION: ADOPT A RESOLUTION AUTHORIZING SUBMITTAL OF APPLICATION FOR ALL CALRECYCLE GRANTS FOR WHICH THE CITY OF GRAND TERRACE IS ELIGIBLE. DEPARTMENT: PUBLIC WORKS 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. C. CITY COUNCIL COMMUNICATIONS Council Member Bill Hussey Council Member Doug Wilson Council Member Jackie Mitchell Mayor Pro Tem Sylvia Robles Mayor Darcy McNaboe Agenda Grand Terrace City Council May 24, 2016 City of Grand Terrace Page 3 D. PUBLIC HEARINGS – NONE E. UNFINISHED BUSINESS 5. Zoning Code Amendment 15-01 Establishing a New Chapter 18.80 Signs RECOMMENDATION: READ BY TITLE ONLY, WAIVE FURTHER READING AND ADOPT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, APPROVING ZONING CODE AMENDMENT 15-01, TO AMEND TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE BY REPEALING AND REPLACING CHAPTER 18.80 SIGNS IN ITS ENTIRETY AND AMENDING TITLE 5, CHAPTER 5.40 GARAGE SALES BY REVISING SECTION 5.40.070 SIGNS DEPARTMENT: PLANNING & DEVELOPMENT SERVICES F. NEW BUSINESS 6. Annual Financial Report for the Year Ended June 30, 2015 RECOMMENDATION: Receive and file the Annual Financial Report and related documents for the year ended June 30, 2015. DEPARTMENT: FINANCE 7. Calling for General Municipal Election – November 8, 2016 RECOMMENDATION: 1. ADOPT A RESOLUTION CALLING AND GIVING NOTICE OF A GENERAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 8, 2016, FOR THE ELECTION OF CERTAIN OFFICERS AND REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN BERNARDINO TO CONSOLIDATE THE GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD PURSUANT TO ELECTIONS CODE SECTION 10403 RELATING TO GENERAL LAW CITIES; and 2. ADOPT A RESOLUTION ESTABLISHING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATE'S STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2016. DEPARTMENT: CITY CLERK Agenda Grand Terrace City Council May 24, 2016 City of Grand Terrace Page 4 8. Designating Fire Lane and Prohibited Parking to Address Traffic and Parking Issues on Palm Ave; Authorization of Removal of Vehicles RECOMMENDATION: 1. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA ESTABLISHING FIRE LANES AND PROHIBITED PARKING ON PALM AVENUE AND AUTHORIZING REMOVAL OF VEHICLES THEREON. 2. Direct staff to refresh existing red curb on Palm Ave. 3. Direct staff to return within 60 - 90 days with a franchise agreement for towing services. DEPARTMENT: PUBLIC WORKS 9. Designating Fire Lane and Prohibited Parking to Address Traffic and Parking Issues on Westwood Street and Westwood Lane RECOMMENDATION: Staff recommends implementing the following: 1. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA ESTABLISHING FIRE LANES AND PROHIBITING PARKING ALONG THE SOUTH SIDE OF WESTWOOD STREET AND ON THE EAST SIDE AND THE ENTIRE CUL-DE-SAC OF WESTWOOD LANE AND AUTHORIZING REMOVAL OF VEHICLES THEREON 2. Direct staff to return within 60 - 90 days with a franchise agreement for towing services to service all “Tow Away” zones City-wide. 3. Direct staff to discuss with residents on these two streets the implementation of restricted parking areas for residents only and their guests and return to Council in 60 - 90 days with details of such plan. DEPARTMENT: PUBLIC WORKS 10. Encroachments into City Right of Way and Easements by Permanent Structures RECOMMENDATION: 1. Uphold Existing City Policy of Not Allowing Encroachments By Permanent Structures in the Public Right of Way or in Easements 2. Discuss Policy Permanent Structures That are Currently in the Right of Way Can Only be Replaced In-Kind Subject to the Approval of an Encroachment Permit DEPARTMENT: PUBLIC WORKS Agenda Grand Terrace City Council May 24, 2016 City of Grand Terrace Page 5 11. Results of Budget in the Park Workshops RECOMMENDATION: Received and file the results of the “Budget in the Park” workshops held on May 17th and May 19th, 2016. DEPARTMENT: FINANCE 12. Continuation of Twenty-Third Amendment to Law Enforcement Services Contract No. 94-797 with County of San Bernardino RECOMMENDATION: 1. Approve Twenty-Third Amendment to Law Enforcement Services Contract No. 94- 797 with County of San Bernardino; and 2. Authorize the Mayor to execute the Agreement. DEPARTMENT: FINANCE 13. Summer Swim Program RECOMMENDATION: 1. Authorize the City Manager to use up to $16,000 in 2014-15 fund balance for the 2016 Summer Swim Program. The funds were originally earmarked for a Business Incubator Program; and 2. Approve Contract with Boys and Girls Club of Greater Redlands-Riverside to operate the City of Grand Terrace’s 2016 Summer Swim Program in the amount not to exceed $16,000; and 3. Direct the City Manager to submit joint use agreement with the Colton Joint Unified School District Board (CJUSD) for use of the Grand Terrace High School Pool for the City’s 2016 Summer Swim Program and return after CJUSD Board approval to the City Council for ratification of agreement. DEPARTMENT: CITY MANAGER 14. Amendment No. 7 to the Waste Disposal Agreement between the City of Grand Terrace and the County of San Bernardino RECOMMENDATION: 1. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING AMENDMENT NO. 7 , TO THE WASTE DISPOSAL AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE CITY OF GRAND TERRACE; and 2. Authorize the Mayor to Sign the Agreement. DEPARTMENT: PLANNING & DEVELOPMENT SERVICES Agenda Grand Terrace City Council May 24, 2016 City of Grand Terrace Page 6 H. CITY MANAGER COMMUNICATIONS I. CLOSED SESSION – NONE ADJOURN The Next Regular City Council Meeting will be held on Tuesday, June 14, 2016 at 6:00 p.m. Agenda item requests must be submitted in writing to the City Clerk’s office no later than 14 calendar days preceding the meeting. CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● APRIL 26, 2016 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 CALL TO ORDER Mayor McNaboe called the meeting to order at 6:02 p.m. Invocation was given by Council Member Wilson. Pledge of Allegiance was led by Lt. Wolfe of the San Bernardino County Sheriff's Department. ROLL CALL Attendee Name Title Status Arrived Darcy McNaboe Mayor Present Sylvia Robles Mayor Pro Tem Present Jackie Mitchell Council Member Present Doug Wilson Council Member Present Bill Hussey Council Member Present G. Harold Duffey City Manager Present Pat Jacquez-Nares City Clerk Present Richard Adams City Attorney Present Linda Phillips Child Care Present Yanni Demitri Public Works Director Present Sandra Molina Planning & Development Services Director Present ` Cynthia Fortune Finance Director Present Steve Lasiter Battalion Chief Present Robert O’Brine Captain Present Doug Wolfe Lieutenant Present Steve Dorsey Captain Present A. SPECIAL PRESENTATIONS Presentation of Commendation to Captain Robert O'Brine of the San Bernardino County Sheriff's Department. Mayor McNaboe on behalf of the entire City Council read and presented the Commendation to Capt. Robert O'Brine for his dedication and service to the City of Grand Terrace. 2 Packet Pg. 7 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A p r 2 6 , 2 0 1 6 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council April 26, 2016 City of Grand Terrace Page 2 Capt. O'Brine thanked the Mayor, Council, staff, and community for the opportunity to work alongside them. Council Member Mitchell thanked Capt. O'Brine for his service to the community and wished him good luck in his future endeavor. Mayor Pro Tem Robles expressed her support of Capt. O'Brine and thanked him for his service to the community. Council Member Hussey congratulated and thanked Capt. O'Brine for his commitment to the City of Grand Terrace. Council Member Wilson stated Capt. O'Brine was a constant professional with good humor. Mayor McNaboe congratulated and thanked Capt. O'Brine. B. CONSENT CALENDAR APPROVE ALL CONSENT CALENDAR ITEMS. RESULT: APPROVED [UNANIMOUS] MOVER: Sylvia Robles, Mayor Pro Tem SECONDER: Jackie Mitchell, Council Member AYES: McNaboe, Robles, Mitchell, Wilson, Hussey 1. Waive Full Reading of Ordinances on Agenda WAIVED FULL READING OF ALL ORDINANCE ON THE AGENDA. 2. Approval of Minutes – Regular Meeting – 04/12/2016 APPROVED THE MINUTES OF THE 04/12/2016 REGULAR MEETING. 3. Approval of Check Register No. 03312016 in the Amount of $436,825.49 APPROVED CHECK REGISTER NO. 03312016 IN THE AMOUNT $436,825.49, AS SUBMITTED, WHICH INCLUDES THE CHECK REGISTER ACCOUNT INDEX FOR FISCAL YEAR 2015-16. C. PUBLIC COMMENT Angela Wilkinson, Grand Terrace resident, invited everyone to the Corona High School Veteran Event on May 25, 2016 at 8:00 a.m. for additional information call Jeff Perry at (951) 736-3211. 2 Packet Pg. 8 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A p r 2 6 , 2 0 1 6 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council April 26, 2016 City of Grand Terrace Page 3 Anthony Cortez, Chamber of Commerce President, announced the business of the month: Bella Tresse Hair & Nail Salon. Sally McGuire, Grand Terrace resident, announced the Grand Terrace Community Day was scheduled for Saturday, June 4, 2016. She was still looking for sponsors and 20 volunteers. Marva X, Grand Terrace resident, provided a background on the grief camp that came from Massachusetts, which takes the participants to Malibu for a week. She further announced that on June 12, 2016, 20 Veterans are coming back from Washington DC. City Manager Duffey introduced the City's new part-time weekend Code Enforcement Officer Gerarld Cox. Code Enforcement Officer Cox provided a brief summary of his experience. City Manager Duffey introduced the Public Works Director Yanni Demitri. Public Works Director Demitri provided a brief summary of his experience. D. CITY COUNCIL COMMUNICATIONS Council Member Bill Hussey Council Member Hussey thanked everyone in attendance and the people that provided the community information. He welcomed the new employees. Council Member Hussey went to the Living for Giving spaghetti fundraising dinner. He attended the League of Cities meeting which had a lengthy discussion on California Voter Rights. Council Member Hussey thanked the Women's Club for inviting him to their luncheon he had a great time. Council Member Doug Wilson Council Member Wilson thanked everyone in attendance and he had nothing further to report. Council Member Jackie Mitchell Council Member Mitchell thanked everyone in attendance and welcomed the new City staff. She attended the Dog Park planning meeting and was very impressed with the passion of the residents. Mayor Pro Tem Sylvia Robles Mayor Pro Tem Robles thanked everyone that was in attendance. She welcomed the new staff. Mayor Pro Tem Robles stated that she had been a member of the Women's 2 Packet Pg. 9 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A p r 2 6 , 2 0 1 6 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council April 26, 2016 City of Grand Terrace Page 4 Club for 13 years and it was her turn to be in charge of Hospitality. The Women's Club really appreciated the attendance of the City Clerk, City Manager and Council Member Hussey. Mayor Pro Tem Robles further reported that she had her Omnitrans Administrative Committee meeting it was budget planning season. She also provided several of the factors and statistics on the low ridership throughout the County. Mayor Pro Tem Robles wanted to know what the Measure I ballot language was when it went to the voters. The full Omnitran's report can be found on their website at: <http://www.omnitrans.org/news- events/agendas/pdf/Administrative%20&%20Finance%20Committee%20- %20April%2014,%202016.pdf>. In addition, Mayor Pro Tem Robles reported on the Omnitrans retirement contributions and the SBX. Mayor Darcy McNaboe Mayor McNaboe reported that she attended the SANBAG Metro Valley Study Session and her report would be provided at the next Council meeting. She further reported on the SANBAG and Caltrans Interstate 10 Corridor Project announcement of availability of Draft Environmental Impact Report/Draft Environmental Impact Statement and Opportunity to Comment on Section 4(f) De Minimis Impact Finding. WHAT IS BEING PLANNED? The California Department of Transportation (Caltrans) is proposing to improve Interstate10 (I-10) by constructing freeway lane(s) and other improvements through all or a portion of the 33 mile long segment of the I-10 from the Los Angeles/San Bernardino (LA/SB) County line to Ford Street in San Bernardino County. The project limits, including transition areas, extend from approximately 0.4 mile west of White Avenue in the city of Pomona to Live Oak Canyon Road in the city of Yucaipa. The I-10 Corridor Project (I-10 CP) consists of a No Build Alternative (Alternative 1) and two build alternatives (Alternatives 2 and 3). Alternative 2 would extend the existing HOV lane in each direction of I-10 from Haven Avenue in Ontario to Ford Street in Redlands. Alternative 3 would provide two Express Lanes in each direction of I-10 from the LA/SB County line to California Street in Redlands and one Express Lane in each direction from California Street to Ford Street in Redlands. Implementation of the build alternatives would reduce congestion, increase throughput, enhance trip reliability, and accommodate long-term congestion management of the corridor. The project is currently expected to be open to traffic in year 2025. WHY THIS NOTICE? Caltrans has studied the effects this project may have on the environment and has completed the Draft Environmental Impact Report/Environmental Impact Statement (DEIR/EIS), which evaluates the potential impacts of a No-Build Alternative and two build alternatives (Alternatives 2 and 3). This notice is to tell you a DEIR/EIS has been prepared, it is available for you to read, and to notify you about a public meeting. The proposed project also requires an action that is subject to the U.S. Department of 2 Packet Pg. 10 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A p r 2 6 , 2 0 1 6 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council April 26, 2016 City of Grand Terrace Page 5 Transportation Act of 1966. Section 4(f) of this legislation seeks to protect publicly owned parks and recreation areas, waterfowl and wildlife refuges, and historic sites considered to have national, state, or local significance. De minimis impacts are defined as those that do not adversely affect the activities, features and attributes for which the property qualifies as a 4(f) resource. WHAT IS AVAILABLE? The DEIR/DEIS and the related technical studies are now available for public review from April 25, 2016 to June 8, 2016 at Caltrans District 8, 464 W. 4th Street, San Bernardino, CA 92401. Maps and other information are also available. There are also copies of the DEIR/DEIS available at A.K. Smiley Public Library, 125 West Vine St., Redlands, CA 92373; Loma Linda Branch Library, 25581 Barton Rd., Loma Linda, CA 92354; Norman F. Feldheym Central Library, 555 West 6th St., San Bernardino, CA 92410; Colton Public Library, 656 North 9th St., Colton, CA 92324; Rialto Branch Library, 251 West 1st St., Rialto, CA 92376; Fontana Lewis Library & Technology Center, 8437 Sierra Avenue, Fontana, CA 92335; Paul A. Biane Library, 12505 Cultural Center Drive, Rancho Cucamonga, CA 91739; Upland Public Library, 450 North Euclid Ave., Upland, CA 91786; Ovitt Family Community Library, 215 East "C" St., Ontario, CA 91764; and Montclair Branch Library, 9955 Fremont Ave., Montclair, CA 91763. The report can also be accessed from the Caltrans website: <http://www.dot.ca.gov/d8/index.html> and from the San Bernardino Associated Governments (SANBAG) website at <http://www.sanbag.ca.gov/projects/mi_fwy_I-10- corridor.html>. WHERE YOU COME IN Have the potential impacts been addressed? Do you have additional information that should be considered for the proposed project? Your comments will be a part of the public record. If you wish to make a comment on the DEIR/EIS and Section 4(f) de minimis finding you may submit your written comments or request until June 8, 2016. Your input is important for us to finalize the environmental document and potential mitigation measures. We encourage you to review and comment on the DEIR/EIS. You may send your comments to Aaron Burton, Branch Chief, Caltrans District 8, “Attn: I-10 CP Draft EIR/EIS Comment Period”, 464 W. 4th Street, San Bernardino, CA 92401, or via email to i10corridorproject@dot.ca.gov. You may also call (909) 884-8276, attention Tim Watkins, Chief of Legislative and Public Affairs. Public meetings will be held between 4:30 PM and 7:30 PM at the following locations: Doubletree Hotel, 285 East Hospitality Lane, San Bernardino, CA 92408 (May 17, 2016); Bloomington Senior Center, 18313 Valley Blvd., Bloomington, CA 92316 (May 18, 2016) and the Ontario Airport Hotel, 700 North Haven Ave., Ontario, CA 91764 (May 19, 2016). SPECIAL ACCOMMODATIONS For individuals who require special accommodations (American Sign Language or other lingual interpreter, accessible seating, documentation in alternate formats, etc), contact (877) 726-2241. TDD users may contact the California Relay Service TDD line at 1-800- 735-2929 2 Packet Pg. 11 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A p r 2 6 , 2 0 1 6 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council April 26, 2016 City of Grand Terrace Page 6 Mayor McNaboe thanked the Women's Club for inviting her, the Council Members, the City Manager, and the City Clerk to their meeting. It was great that the Women’s Club wanted to get to know the City and City staff this really helps in establishing working partnerships. She also attended the Elementary School play it was well done. Mayor McNaboe also welcomed the new City staff. E. PUBLIC HEARINGS 4. Zoning Code Amendment 15-01 Establishing a New Chapter 18.80 Signs Planning & Development Services Director Molina presented the PowerPoint for this item. Council Member Mitchell suggested that this item be presented in sections instead of as a whole piece. Mayor McNaboe asked City Attorney Adams if a public meeting could be held at a special meeting. City Attorney Adams answered yes this item could be continued to a special meeting. Mayor Pro Tem Robles agreed that this item should be taken at a separate meeting. MOTION: CONTINUE ITEM TO A SPECIAL MEETING ON JULY 19, 2016. MOVER: Jackie Mitchell, Council Member SECONDER: Sylvia Robles, Mayor Pro Tem Mayor McNaboe opened the Public Hearing at 6:55 p.m. Jeff McConnell, Grand Terrace resident, supports the continuation to a workshop. Angela Wilkinson, Grand Terrace resident, stated her concerns with human signs and requested that it be voted on by the public. City Manager Duffey stated that City staff incorporated the Council's comments into this ordinance and it still had Council concerns. He wanted to provide the original direction from the Council to the City Attorney to find a way to present it legally within the ordinance. City Attorney Adams stated that his office did incorporate most of the Council’s direction but the Mayor was correct in that there had been changes due to the Case. Mayor Pro Tem Robles stated that this had been discussed before and that Council would have benefitted from a briefing on this prior to tonight’s meeting. City Manager Duffey clarified the two options that the Council had. 2 Packet Pg. 12 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A p r 2 6 , 2 0 1 6 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council April 26, 2016 City of Grand Terrace Page 7 Mayor McNaboe closed the public hearing at 7:07 p.m. City Attorney Adams read by title only Ordinance No. 296 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, APPROVING ZONING CODE AMENDMENT 15-01, TO AMEND TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE BY REPEALING AND REPLACING CHAPTER 18.80 SIGNS IN ITS ENTIRETY AND AMENDING TITLE 5, CHAPTER 5.40 GARAGE SALES BY REVISING SECTION 5.40.070 SIGNS SUBSTITUTE MOTION: APPROVE STAFF’S RECOMMENDATION AS FOLLOWS: 1. CONDUCT A PUBLIC HEARING; AND 2. FIND THAT THE ADOPTION OF THE HEREIN ORDINANCE IS EXEMPT FROM CEQA REVIEW PURSUANT TO SECTION 15061 (B)(3) (GENERAL RULE) OF THE CEQA GUIDELINES, IN THAT IT CAN BE SEEN WITH CERTAINTY THAT THERE IS NO POSSIBILITY THAT THE PASSAGE OF THIS ORDINANCE WILL HAVE A SIGNIFICANT EFFECT ON THE ENVIRONMENT 3. INTRODUCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, APPROVING ZONING CODE AMENDMENT 15-01, TO AMEND TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE BY REPEALING AND REPLACING CHAPTER 18.80 SIGNS IN ITS ENTIRETY AND AMENDING TITLE 5, CHAPTER 5.40 GARAGE SALES BY REVISING SECTION 5.40.070 SIGNS RESULT: APPROVED [3 TO 2] MOVER: Doug Wilson, Council Member SECONDER: Sylvia Robles, Mayor Pro Tem AYES: Darcy McNaboe, Sylvia Robles, Doug Wilson NAYS: Jackie Mitchell, Bill Hussey F. UNFINISHED BUSINESS 5. Adopt Ordinance No. 295 Amending Chapter 5.12 of City of Grand Terrace Municipal Code (Cable Television Franchises) READ BY TITLE ONLY AND WAIVE FURTHER READING AND ADOPT ORDINANCE NO. 295 AN ORDINANCE OF THE CITY COUNCIL TO AMEND THE GRAND TERRACE MUNICIPAL CODE BY REPLACING CHAPTER 5.12 GOVERNING CABLE TELEVISION FRANCHISES. RESULT: APPROVED [UNANIMOUS] MOVER: Jackie Mitchell, Council Member SECONDER: Doug Wilson, Council Member AYES: McNaboe, Robles, Mitchell, Wilson, Hussey 2 Packet Pg. 13 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A p r 2 6 , 2 0 1 6 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council April 26, 2016 City of Grand Terrace Page 8 City Attorney Adams read by title only Ordinance No. 295: AN ORDINANCE OF THE CITY COUNCIL TO AMEND THE GRAND TERRACE MUNICIPAL CODE BY REPLACING CHAPTER 5.12 GOVERNING CABLE TELEVISION FRANCHISES. G. NEW BUSINESS 6. Award of Contract for Van Buren Traffic Calming Improvements Planning & Development Services Director Molina presented this item. 1. AUTHORIZE AWARD OF CONSTRUCTION CONTRACT FOR THE VAN BUREN TRAFFIC CALMING IMPROVEMENTS TO CAL STRIPE, INC,. AS THE LOWEST RESPONSIVE BIDDER IN THE AMOUNT OF $16,025.00 TO INCLUDE PHASE 1A AND 1B; AND 2. AUTHORIZE THE PUBLIC WORKS DIRECTOR TO APPROVE CHANGE ORDERS NOT TO EXCEED 5% OF THE AWARDED CONTRACT, WHICH WOULD RESULT IN A TOTAL PROJECT CONSTRUCTION BUDGET OF $18,429.00; AND 3. AUTHORIZE THE PUBLIC WORKS DIRECTOR TO IMPLEMENT PHASE 1B, IF FURTHER STUDY DETERMINES NECESSARY; AND 4. APPROPRIATE AN ADDITIONAL $4,618.00 FROM THE GAS TAX FUND FOR THE PROJECT. RESULT: APPROVED [UNANIMOUS] MOVER: Jackie Mitchell, Council Member SECONDER: Bill Hussey, Council Member AYES: McNaboe, Robles, Mitchell, Wilson, Hussey 7. Report on Tree Inventory Conducted by Arbor Pro, Inc. Administrative Management Intern Smith presented this item. Council Member Wilson stated he noticed the justifications on the removal vs pruning and was concerned with individuals pruning. He also wanted to know how this could be remediated to not have individuals prune their trees. Keith Henning, President of ArbroPro, Inc., stated that most City's do the maintenance of the trees. He stated that cities had an ordinance in place that would fine a resident if they trimmed or removed a city tree. City Manager Duffey stated that the City did have an ordinance in place that stated the tree was the responsibility of the property owner but they needed permission from the City to cut it. The City would need to make sure to have a certified arborist cut the trees. 2 Packet Pg. 14 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A p r 2 6 , 2 0 1 6 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council April 26, 2016 City of Grand Terrace Page 9 The important part of this report was that it established the timeline for the pruning cycle throughout the City and the cost of the trees. Council Member Hussey stated that Edison came in and cut down the trees without consulting the City. He would like to have everyone follow the City's ordinance including utility companies. RECEIVE AND FILE THE STAFF REPORT AND DIRECT STAFF TO BRING BACK TO COUNCIL MODIFICATIONS ON THE TREE ORDINANCE RESULT: APPROVED [UNANIMOUS] MOVER: Darcy McNaboe, Mayor SECONDER: Doug Wilson, Council Member AYES: McNaboe, Robles, Mitchell, Wilson, Hussey 8. Overview of the City of Grand Terrace California Public Employees Retirement System (CalPERS) Unfunded Accrued Liability Finance Director Fortune presented the PowerPoint for this item. Council Member Wilson stated his understanding of this broken system and his disappointment with the social security system. He asked if there was a cap on this system for employees. Finance Director Fortune answered no. City Manager Duffey stated that a significant amount of the City's liability was at 2.7% at 55. Mayor Pro Tem Robles stated that this started with Gray Davis. The City had to look at their two classes of employees in the near future. RECEIVE AND FILE THE OVERVIEW OF THE CITY’S CALIFORNIA PUBLIC EMPLOYEE RETIREMENT SYSTEM (CALPERS) UNFUNDED ACCRUED LIABILITY REPORT. RESULT: APPROVED [4 TO 0] MOVER: Darcy McNaboe, Mayor AYES: Darcy McNaboe, Sylvia Robles, Jackie Mitchell, Bill Hussey ABSTAIN: Doug Wilson H. CITY MANAGER COMMUNICATIONS City Manager Duffey stated that the Budget Workshop scheduled for May 7, 2016 would be rescheduled. He requested confirmation from Council on the remaining Budget Workshop schedule. City Manager Duffey would have staff resend the Council the Budget Workshop Schedule. 2 Packet Pg. 15 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A p r 2 6 , 2 0 1 6 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council April 26, 2016 City of Grand Terrace Page 10 RECESS TO CLOSED SESSION Mayor McNaboe recessed the Council into Closed Session at 8:05 p.m. to discuss the two items as listed on the agenda. I. CLOSED SESSION 9. Public Employee Performance Evaluation - Pursuant To Government Code Section 54957(b) (1) Title: City Manager 10. Conference with Labor Negotiators - Pursuant to Government Code Section 54957.6 Agency Designated Representative: City Attorney Unrepresented Employee: City Manager RECONVENE TO OPEN SESSION Mayor McNaboe reconvened to Open Session at 8:56 p.m. REPORT OUT OF CLOSED SESSION Mayor McNaboe reported that the Council met in Closed Session to discuss the two items as listed on the agenda. Direction was given to the City Attorney with no reportable action. ADJOURN Mayor McNaboe adjourned the meeting at 8:57 p.m. The Next Regular City Council Meeting will be held on Tuesday, May 10, 2016 at 6:00 p.m. _________________________________ Darcy McNaboe, Mayor _________________________________ Pat Jacquez-Nares, City Clerk 2 Packet Pg. 16 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A p r 2 6 , 2 0 1 6 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) AGENDA REPORT MEETING DATE: May 24, 2016 Council Item TITLE: Approval of Check Register No. 04302016 in the Amount of $576,272.07 PRESENTED BY: Cynthia Fortune, Finance Director RECOMMENDATION: Approve Check Register No. 04302016 in the amount $576,272.07, as submitted, which includes the Check Register Account Index for Fiscal Year 2015-16. 2030 VISION STATEMENT: This staff report supports Goal #1, “Ensuring Our Fiscal Viability”, through the continuous monitoring of expenditure budgets, allocations and operational costs. BACKGROUND: The check register, for the period ending April 30, 2016, has been prepared in accordance with Government Code §37202 and is hereby submitted for the City Council’s approval. The check register lists all vendor payments for the preceding month, along with a brief description of the type of goods or services purchased and the account code(s) associated with each payment. Check Register No. 04302016 lists all payments made to vendors and employee reimbursements during the month of April. The attached index to the Check Register is a guideline account list only and is not intended to replace the comprehensive chart of accounts used by the City and CRA Successor Agency. Expenditure account number formats are XX-XXX-XXX [Fund- Department-Account]. Expenditures may be made from trust/agency accounts (Fund 23-XXX-) or temporary clearing accounts which do not have a budgetary impact. A total of $576,272.07 in accounts payable checks were issued during the period for services, reimbursements, supplies and contracts and are detailed in the attached check register. Payments larger than $10,000: Check No. Payee Description Amount 72688 WILLDAN FINANCIAL MAR FINANCE DEPT SERVICES $30,785.40 3 Packet Pg. 17 Check No. Payee Description Amount 72692 BURRTEC WASTE DELIQUENT TRASH COLLECTIONS 75,708.94 72711 WILLDAN ENGINEERING SRVS 13,283.41 72715 ARBORPRO INC 2015-16 TREE INVENTORY 12,475.00 72734 RJS GENRAL CONSTRUCTION PICO PARK SIDEWALK IMPROVEMENTS 18,135.00 72737 SECURITY LINES US PUBLIC RIGHT-OF-WAY SURVEILLANCE 48,562.20 72748 CA PUBLIC EMPLOYEES RETIREMENT SYSTEM MAY PERS HEALTH INSURANCE 12,534.94 72760 SB COUNTY SHERIFF APRIL LAW ENFORCEMENT SERVICES 140,352.00 TOTAL CHECKS ISSUED OVER $10,000 $351,836.89 Payroll costs for the month ending April 30, 2016 Pay Per. Period Ending Period Pay Date Amount 17 04/08/2016 Period 03/26/2015 – 04/08/2016 04/14/2016 $61,468.65 18 04/22/2016 Period 04/09/2016 – 04/22/2016 04/28/2016 $59,619.30 TOTAL PAYROLL FOR APRIL 2016 $121,087.95 FISCAL IMPACT: All disbursements were made in accordance with the Approved Budget for Fiscal Year 2015-16 in the amount of $576,272.07. ATTACHMENTS:  A - Check Register Account Index (PDF)  B - Check Register No. 04302016 (PDF) APPROVALS: Cynthia Fortune Completed 05/18/2016 12:32 PM Finance Completed 05/18/2016 12:32 PM City Attorney Completed 05/18/2016 6:11 PM 3 Packet Pg. 18 City Manager Completed 05/18/2016 7:09 PM City Council Pending 05/24/2016 6:00 PM 3 Packet Pg. 19 Fund No.Fund Name Dept No.Department Cost Center Acct No.General Account Numbers 09 CHILD CARE FUND 110 CITY COUNCIL 110 SALARIES/WAGES 10 GENERAL FUND 120 CITY MANAGER 138 MEDICARE / SUI 11 STREET FUND 125 CITY CLERK 139 EMPLOYEES' BENEFIT PLAN 12 STORM DRAIN FUND 140 FINANCE 140 RETIREMENT 13 PARK FUND 160 CITY ATTORNEY 142 HEALTH/LIFE INSURANCE 14 AB 3229 COPS FUND 172 BUILDING & SAFETY 143 WORKERS' COMPENSATION 15 AIR QUALITY IMPROVEMENT FUND 175 PUBLIC WORKS 210 OFFICE EXPENSE 16 GAS TAX FUND 180 COMMUNITY EVENTS 218 NON-CAPITAL FURN/SMALL TOOLS 17 TRAFFIC SAFETY FUND 185 RENTAL INSPECTION PROGRAM 220 SPECIAL DEPARTMENTAL EXP 18 TRANS. DEV. ACT (T D A FUND)187 ENFORCEMENT PROGRAM 230 ADVERTISING 19 FACILITIES DEVELOPMENT FUND 190 GENERAL GOVERNMENT (NON-DEPT)235 COMMUNICATIONS 20 MEASURE I FUND 195 FACILITIES MAINTENANCE 238 UTILITIES 21 WASTE WATER DISPOSAL FUND 300 DEBT SERVICE 240 RENTS & LEASES 22 COMMUNITY DEV. BLOCK GRANT 370 COMMUNITY DEV (PLANNING)245 MAINT BLDG GRNDS EQUIPMNT 25 SPRING MOUNTAIN RANCH FUND 380 MGT INFORMATION SYSTEMS 250 PROFESSIONAL SERVICES 26 LSCPG/ LGHTG ASSESSMENT DIST.410 LAW ENFORCEMENT 255 CONTRACTUAL SERVICES 31 S/A RDA OBLIGATION FUND 411 ASSET FORFEITURES 260 INSURANCE & SURETY BONDS 32 S/A CAPITAL PROJECTS FUND 430 RECREATION SERVICES 265 MEMBERSHIPS & DUES 33 S/A DEBT SERVICE FUND 440 CHILD CARE 268 TRAINING 36 S/A 2011 TABS BOND PROCEEDS 450 PARKS MAINTENANCE 270 TRAVEL/CONFERENCES/MTGS 37 S/A CRA PROJECTS TRUST 510 STREET & SIGNAL LIGHTING 272 FUEL & VEHICLE MAINTENANCE 46 CIP - STREET IMPROVEMENT PROJECTS 600 WEST SIDE PARK 570 WASTEWATER TREATMENT 47 CIP - BARTON RD. BRIDGE PROJECT 601 TRACT 14471 PICO & ORIOLE 300 DEBT SERVICE 48 CIP - CAPITAL PROJECTS FUND 602 FORREST CITY PHASE II 700 COMPUTER-RELATED 52 HOUSING AUTHORITY 625 NPDES 701 VEHICLES & EQUIPMENT 61 COMMUNITY BENEFITS FUND 631 STORM DRAIN MAINTENANCE 70 FIXED ASSED/EQUIP REPL FUND 801 PLANNING COMMISSION 802 CRIME PREVENTION UNIT 804 HISTORICAL & CULTURAL COMM. 805 SENIOR CITIZENS PROGRAM 807 PARKS & REC COMMITTEE 808 EMERGENCY OPERATIONS PROG. 999 TRANSFERS City of Grand Terrace Check Register Index 3.a Packet Pg. 20 At t a c h m e n t : A - C h e c k R e g i s t e r A c c o u n t I n d e x ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice # E 10-125-230-000-000 71.23 71.23 359.38 E 10-125-230-000-000 71.23 71.23 B28463941 PUBLIC NOTICES 03/08/2016 E 10-125-230-000-000 106.84 106.84 B2852403 PUBLIC NOTICES 03/21/2016 E 10-125-230-000-000 110.08 110.08 B2846384 PUBLIC NOTICES 03/08/2016 B 10-022-63-00 1,057.52 1,057.52 1,057.52 72668 04/06/2016 DAILY JOURNAL CORPORATION B2852402 PUBLIC NOTICES 03/21/2016 B 10-022-65-00 5.00 5.00 5.00 72667 04/06/2016 CALPERS 457 PLAN PR END 03252016 457PR END 03252016 EMPLOYEE 457 PLAN CONTRIBUTIONS04/05/2016 E 10-110-142-000-000 150.00 150.00 150.00 72666 04/06/2016 ARROWHEAD UNITED WAY PR END 03252016 UWPR END 03252016 UNITED WAY CONTRIBUTIONS04/04/2016 E 10-190-265-000-000 5,617.00 5,617.00 5,617.00 72665 04/05/2016 WILLIAM HUSSEY FEB 2016 WH FEB2016 HEALTH INS REIMB-WH 04/05/2016 Inv. Date Amount Paid Check Total 72664 04/05/2016 LEAGUE OF CALIFORNIA CITIES 158322 2016 MEMBERSHIP DUES 01/04/2016 Check #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 3.b Packet Pg. 21 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 114672 E 10-450-245-000-000 19.98 19.98 2,462.67 E 10-450-245-000-000 115.08 115.08 9507317-01 CITY WIDE PARK REPAIRS 02/16/2016 E 10-450-245-000-000 340.20 340.20 9525483-00 CITY WIDE PARK REPAIRS 03/01/2016 E 10-450-245-000-000 1,987.41 1,987.41 9551742-00 CITY WIDE PARK REPAIR SUPPLIES 03/22/2016 E 10-631-255-000-000 3,600.00 3,600.00 3,600.00 72672 04/06/2016 HYDRO SCAPE PRODUCTS INC 9498515-01 LANDSCAPING SUPPLIES 03/22/2016 B 10-022-61-00 105.87 105.87 105.87 72671 04/06/2016 HOUSTON AND HARRIS PCS INC 16-19519 MERLE CT STORM DRAIN REPAIR 03/16/2016 174.60 587.50 72670 04/06/2016 EYEMED FIDELITY SECURITY LIFE 9905613 APRIL EMPLOYEE PAID VISION INSURANCE 04/01/2016 B 10-022-61-00 412.90 412.90 APRIL EMPLOYEE DENTAL INSURANCE H71 03/16/2016 B 10-022-61-00 174.60 72669 04/06/2016 DENTAL HEALTH SERVICES 114680 APRIL EMPLOYEE DENTAL INSURANCE H71P 03/16/2016 3.b Packet Pg. 22 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 E 09-440-244-000-000 1,020.00 1,020.00 1,020.00 E 10-172-210-000-000 55.60 55.60 55.60 72678 04/06/2016 PROGREEN BUILDING MAINTENANCE15092 APRIL2016 JANITORIAL SERVICES 04/05/2016 E 10-140-210-000-000 186.81 186.81 186.81 72677 04/06/2016 ON TRAC 8404210 MARCH PLAN CHECK DELIVERY SERVICES 03/26/2016 B 10-022-68-00 324.40 324.40 324.40 72676 04/06/2016 OFFICE DEPOT 831831511001 OFFICE SUPPLIES 03/30/2016 E 10-110-270-000-000 35.00 35.00 35.00 72675 04/06/2016 MIDAMERICA ADMIN AND RETIRE PR END 03252016 ARSPR END 03252016 RETIREMENT CONTRIBUTIONS04/04/2016 E 10-160-250-000-000 92.50 92.50 5,703.50 72674 04/06/2016 INLAND EMPIRE DIVISION LEAGUE OF CALIFORNIA CITIESIEDIV MTG APR2016-WHLLC IE DIV MTG 04142016 - WHUSSEY 04/06/2016 E 32-200-251-000-000 444.00 444.00 76949 LEGAL COUNSEL SVCS 03/31/2016 E 10-160-250-000-000 5,167.00 5,167.00 76951 LEGAL COUNSEL SVCS 03/31/2016 72673 04/06/2016 JONES AND MAYER 76950 LEGAL COUNSEL SERVICES 03/31/2016 3.b Packet Pg. 23 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 E 10-450-238-000-000 1,280.16 E 16-510-238-000-000 3,348.50 5,202.37 5,202.37 E 10-172-238-000-000 46.43 E 10-175-238-000-000 46.42 E 10-190-238-000-000 480.86 E 10-110-270-000-000 130.00 130.00 130.00 72683 04/06/2016 SO CA EDISON COMPANY MAR 2016 EDISONMARCH 2016 ENERGY USAGE 03/31/2016 72682 04/06/2016 SB COUNTY LEGISLATIVE AFFAIRS2016CITY/CNTY-SR2016 CITY-COUNTY CONFERENCE SROBLES 04/06/2016 E 10-195-245-000-000 593.33 E 10-450-245-000-000 450.00 1,043.33 1,043.33 E 10-110-142-000-000 485.41 485.41 485.41 72681 04/06/2016 SANTA FE BUILDING MAINTENANCE14749 MAR2016 JANITORIAL SVCS - PARKS 03/31/2016 B 10-022-62-00 7,731.28 7,731.28 7,731.28 72680 04/06/2016 SYLVIA ROBLES MAR2016 HLTH-SRMAR2016 HEALTH INSURANCE REIMB-SROBLES04/04/2016 72679 04/06/2016 PUBLIC EMPLOYEES RETIREMENT PR END 03252016 PERSRETIREMENT CONTRIBUTIONS P/R END 03/25/201603/25/2016 3.b Packet Pg. 24 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 E 10-175-255-100-000 2,795.00 2,795.00 8,920.00 E 10-172-250-000-000 6,125.00 6,125.00 002-16469 PUBLIC WORKS SERVICES 03/09/2016 E 16-900-220-000-000 57.00 57.00 57.00 72687 04/06/2016 WILLDAN 002-16467 FEB2016 PLAN REVIEW/INSPECTION SVCS 03/09/2016 E 10-190-238-000-000 146.52 146.52 146.52 72686 04/06/2016 UNDERGROUND SERVICE ALERT 320160302 MAR UNDERGROUND DIGGING NOTIFICATIONS SRVS04/01/2016 E 10-175-268-000-000 1.38 1.38 218.78 72685 04/06/2016 TIME WARNER CABLE 8448..7245 APR 2016APRIL CIVIC CENTER CABLE/INTERNET SRVS 04/07/2016 E 10-175-268-000-000 8.10 8.10 32246 DUPLICATE KEYS 06/11/2015 E 10-175-268-000-000 68.10 68.10 32445 DUPLICATE KEYS 02/28/2016 E 10-175-268-000-000 141.20 141.20 34025 DUPLICATE KEYS 07/13/2015 72684 04/06/2016 SO CAL LOCKSMITH 34230 DUPLICATE KEYS 07/13/2016 3.b Packet Pg. 25 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 E 32-370-255-000-000 790.00 790.00 790.00 B 23-302-90-00 75,708.94 75,708.94 75,708.94 72693 04/13/2016 CAL DREAMSCAPE LANDSCAPE 211945 WEED ABATEMENT SVCS - SUCC AGY PROP 03/29/2016 72692 04/13/2016 BURRTEC WASTE INDUSTRIES INC04132016 BURRTECDELINQUENT TRASH COLLECTIONS 03/08/2016 E 10-805-235-000-000 250.87 E 10-808-235-000-000 151.76 1,502.03 1,502.03 E 09-440-235-000-000 560.22 E 10-190-235-000-000 444.78 E 10-450-235-000-000 94.40 336.00 336.00 72691 04/13/2016 AT AND T APRIL 2016 AT&TAPRIL 2016 AT&T 04/01/2016 E 09-440-228-000-000 100.00 E 10-195-245-000-000 136.00 E 10-450-245-000-000 100.00 E 10-805-245-000-000 160.83 160.83 160.83 72690 04/13/2016 ASCAP 500713485 ANNUAL HOLD MUSIC LICENSE FEES 2016 03/30/2016 E 10-140-250-000-000 30,785.40 30,785.40 30,785.40 72689 04/13/2016 ADT SECURITY SERVICES 583110771 4TH QTR SENIOR CENTER SECURITY MONITORING03/26/2016 72688 04/06/2016 WILLDAN FINANCIAL SERVICES 010-30880 FY 2015-16 FINANCE DEPT. SERVICES 04/04/2016 3.b Packet Pg. 26 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 B 23-200-86-00 131.40 131.40 131.40 72699 04/13/2016 DIVISION OFTHE STATE ARCHITECTSB 1186 3RD QTR2016 SB1186 1ST QTR COLLECTION 03/31/2016 E 10-172-250-000-000 43.50 E 10-370-250-000-000 87.00 130.50 130.50 E 16-900-254-000-000 4,833.34 4,833.34 4,833.34 72698 04/13/2016 DATA QUICK B1-2516548 MARCH DATA QUICK UPDATES 04/01/2016 E 10-175-250-000-000 5,963.07 5,963.07 5,963.07 72697 04/13/2016 CLEAN STREET 81739 MARCH 2016 STREET SWEEPING SERVICES 03/31/2016 E 09-440-220-000-000 269.61 269.61 269.61 72696 04/13/2016 CITY OF COLTON 001330 2015 CHRISTMAS DECORATION INSTALL/REMOVAL03/09/2016 72695 04/13/2016 CINTAS CORPORATION 150 150652834 PAPER SUPPLIES & OPERATIONAL ITEMS 04/06/2016 E 10-175-272-000-000 387.76 E 10-185-272-000-000 22.39 410.15 410.15 72694 04/13/2016 CHEVRON TEXACO CARD SERVICES47135960 MAR VEHICLE FUEL 04/06/2016 3.b Packet Pg. 27 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 E 10-172-220-000-000 2.00 2.00 2.00 E 10-172-210-000-000 17.85 17.85 17.85 72706 04/13/2016 SB COUNTY ASSESSOR 107117 UPDATED ASSESSOR PACEL MAPS 04/07/2016 E 10-110-142-000-000 409.03 409.03 409.03 72705 04/13/2016 ON TRAC 8407839 MARCH PLAN CHECK DELIVERY SERVICES 04/02/2016 72704 04/13/2016 DARCY MCNABOE 160740231825 APRIL HEALTH INSURANCE REIMBURSEMENT 04/07/2016 E 10-195-245-000-000 102.23 E 10-450-245-000-000 424.34 526.57 526.57 E 09-440-247-000-000 90.00 90.00 180.00 72703 04/13/2016 HOME DEPOT CREDIT SERVICE 6035322500233683 MARMARCH HOME DEPOT CHARGES 04/11/2016 E 09-440-247-000-000 90.00 90.00 114503 FEB C.CARE SECURITY ALARM & FIRE MONITORING SVCS01/01/2016 E 10-450-245-000-000 10.14 10.14 10.14 72702 04/13/2016 HIGH TECH SECURITY SYSTEMS 115291 MAY C.CARE SECURITY ALARM & FIRE MONITORING SVCS04/01/2016 E 10-175-272-000-000 1,174.80 1,174.80 1,174.80 72701 04/13/2016 FRUIT GROWERS SUPPLY 91752947 LANDSCAPE MAINTENANCE SUPPLIES 04/05/2016 72700 04/13/2016 FAIR PRICE CARPET CG600165 CITY HALL CARPET INSTALLATION 03/23/2016 3.b Packet Pg. 28 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 E 10-808-235-000-000 20.06 20.06 20.06 E 10-190-238-000-000 64.21 64.21 164.20 72710 04/13/2016 VERIZON WIRELESS 9762799215 EOC VERIZON CELL TOWER MONTHLY BILLING03/25/2016 E 09-440-238-000-000 99.99 99.99 8448..7046 APR-MAYAPR-MAY CITY HALL CABLE SERVICES 04/16/2016 72709 04/13/2016 TIME WARNER CABLE 8448...4289 APR-MAYAPR-MAY CHILD CARE CABLE/INTERNET SERVICES04/17/2016 E 10-190-238-000-000 143.20 E 10-805-238-000-000 80.86 413.62 974.36 560.74 9637116020116 JAN 2016 BOTTLED WATER 02/01/2016 E 09-440-238-000-000 189.56 E 09-440-238-000-000 216.89 E 10-190-238-000-000 223.27 E 10-805-238-000-000 120.58 72708 04/13/2016 SPARKLETTS 9637116040116 MARCH BOTTLED WATER 04/01/2016 E 26-601-238-000-000 41.50 E 26-602-238-000-000 58.10 6,387.93 6,387.93 E 09-440-238-000-000 792.68 E 16-510-238-000-000 5,445.85 E 26-600-238-000-000 49.80 72707 04/13/2016 SO CA EDISON COMPANY MAR 2016 EDISON 2MARCH 2016 ENERGY USAGE 04/06/2016 3.b Packet Pg. 29 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 B 10-022-65-00 5.00 5.00 5.00 E 16-175-250-302-000 12,475.00 12,475.00 12,475.00 72716 04/20/2016 ARROWHEAD UNITED WAY PR END 04082016 UWPR END 04082016 UNITED WAY CONTRIBUTIONS04/08/2016 B 23-250-20-00 469.24 469.24 469.24 72715 04/20/2016 ARBORPRO INC 33226 FY 2015-16 TREE INVENTORY PROGRAM 03/30/2016 B 23-500-40-00 304.40 304.40 304.40 72714 04/20/2016 AMERICAN FIDELITY ASSURANCE COB452671 MAY EMP PAID ACCIDENT/SUPP LIFE 05/01/2016 72713 04/20/2016 ALBERT A WEBB ASSOCIATES 161042 TR 17766 LANDSCAPE IRRIGATION 03/25/2016 E 10-190-212-000-000 51.71 E 10-190-700-000-000 305.98 357.69 1,041.33 E 10-190-212-000-000 444.39 E 10-190-700-000-000 239.25 683.64 084066812 MAR W5755A PRINTER: LEASE & IMPRESSIONS04/01/2016 E 46-900-321-000-000 13,283.41 13,283.41 13,283.41 72712 04/13/2016 XEROX CORPORATION 084066813 MAR W7556P PRINTER: LEASE & IMPRESSIONS04/01/2016 72711 04/13/2016 WILLDAN 005-13918 ENGINEERING SERVICES BARTON RD 01/27/2016 3.b Packet Pg. 30 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 E 10-125-230-000-000 77.70 77.70 352.90 E 10-125-230-000-000 84.18 84.18 B2835855 PUBLIC NOTICES 02/24/2016 E 10-125-230-000-000 93.89 93.89 B2835875 PUBLIC NOTICES 02/24/2016 E 10-125-230-000-000 97.13 97.13 B2835879 PUBLIC NOTICES 02/24/2016 B 10-022-63-00 1,089.47 1,089.47 1,089.47 72720 04/20/2016 DAILY JOURNAL CORPORATION B2835878 PUBLIC NOTICES 02/24/2016 E 10-190-226-000-000 32.00 32.00 32.00 72719 04/20/2016 CALPERS 457 PLAN PR END 04082016 457PR END 04082016 EMPLOYEE 457 PLAN CONTRIBUTIONS04/08/2016 E 16-510-238-000-000 1,468.38 1,468.38 1,468.38 72718 04/20/2016 CA STATE DEPT OF JUSTICE 157328 FINGERPRINT SVCS 04/06/2016 72717 04/20/2016 CA DEPT OF TRANSPORTATION SL160816 JAN-MAR 2016 INTERCHANGE MAINTENANCE 04/13/2016 3.b Packet Pg. 31 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 E 09-440-228-000-000 98.00 98.00 98.00 E 10-175-235-000-000 34.03 34.03 34.03 72724 04/20/2016 FOX OCCUPATIONAL MEDICAL CTR68679-68178 PRE-EMPLOYMENT PHYSICAL FOR CHILD CARE04/01/2016 E 09-440-245-000-000 100.00 100.00 4,410.00 72723 04/20/2016 FEDEX 5-377-663300 FEDEX CHARGE TO SEND PACKAGE TO MARCEL COMAY04/08/2016 E 26-601-255-000-000 80.00 4,310.00 10087 MARCH MONTHLY MAINTENANCE 03/21/2016 E 10-195-255-000-000 200.00 E 10-450-255-000-000 3,870.00 E 26-600-255-000-000 160.00 E 10-380-249-000-000 2,929.38 2,929.38 2,929.38 72722 04/20/2016 EZ SUNNYDAY LANDSCAPE 10260 APRIL 2016 PARK MAINTENANCE 04/14/2016 72721 04/20/2016 DESERT AV SOLUTIONS 04042016-01 ANTENNA INSTALLATION FOR CHILDCARE 04/04/2016 3.b Packet Pg. 32 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 B 10-022-68-00 395.53 395.53 395.53 B 10-022-66-00 1,043.64 1,043.64 1,043.64 72729 04/20/2016 MIDAMERICA ADMIN AND RETIRE PR END 04082016 ARSPR END 04082016 ARS RETIREMENT CONTRIBUTION04/08/2016 E 16-175-255-300-000 3,412.50 3,412.50 3,412.50 72728 04/20/2016 LINCOLN NATIONAL LIFE INSURANCLCLN MAY 2016 MAY LIFE/ AD&D/DEP LIFE/WI/LTD 05/01/2016 E 10-450-245-000-000 45.77 45.77 267.53 72727 04/20/2016 INTERWEST CONSULTING GROUP 26542 MAR2016 I-215 INTERCHANGE MGMT SRVS 04/08/2016 E 10-450-245-000-000 50.98 50.98 09564023-00 CITY WIDE PARK REPAIRS 03/31/2016 E 10-450-245-000-000 79.61 79.61 09516011-00 CITY WIDE PARK REPAIRS 02/23/2016 E 10-450-245-000-000 91.17 91.17 09561201-00 LANDSCAPING SUPPLIES 03/29/2016 E 10-450-245-000-000 85.00 85.00 330.00 72726 04/20/2016 HYDRO SCAPE PRODUCTS INC 09509155-00 CITY WIDE PARK REPAIRS 02/17/2016 E 10-450-245-000-000 245.00 245.00 172907 GOPHER REMOVAL SVSCS - ROLLINS PARK 04/14/2016 72725 04/20/2016 GOPHER PATROL 172395 GOPHER REMOVAL SVCS - PICO PARK 04/14/2016 3.b Packet Pg. 33 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 E 52-700-710-000-000 12.14 E 52-700-767-000-000 12.14 4,605.06 4,605.06 E 32-600-307-000-000 24.28 E 32-600-326-000-000 24.28 E 48-600-330-010-000 82.12 E 32-600-214-000-000 47.20 E 32-600-216-000-000 12.14 E 32-600-301-000-000 12.14 E 10-805-238-000-000 664.53 E 26-600-239-000-000 82.12 E 26-601-239-000-000 48.82 E 09-440-238-000-000 192.88 E 10-190-238-000-000 426.80 E 10-450-238-000-000 2,963.47 B 10-022-62-00 7,477.83 7,477.83 7,477.83 72733 04/20/2016 RIVERSIDE HIGHLAND WATER CO FEB/MAR 2016 RHWCFEB/MAR 2016 WATER USAGE 04/20/2016 393.32 393.32 72732 04/20/2016 PUBLIC EMPLOYEES RETIREMENT PR END 04082016 PERSRETIREMENT CONTRIBUTIONS P/R END 04/08/201604/08/2016 E 09-440-228-000-000 63.64 E 09-440-272-000-000 60.00 E 09-441-220-000-000 57.17 E 09-440-220-000-000 178.92 E 09-440-221-000-000 12.30 E 09-440-223-000-000 21.29 E 10-140-210-000-000 43.19 43.19 43.19 72731 04/20/2016 PETTY CASH 04202016 CCPC REPLENISH C CARE PETTY CASH 04/20/2016 72730 04/20/2016 OFFICE DEPOT 830992227001 OFFICE SUPPLIES 04/01/2016 3.b Packet Pg. 34 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 E 16-510-255-000-000 473.14 473.14 1,175.14 E 16-510-255-000-000 702.00 702.00 5620010217 MAR2016 SIGNAL RESPONSE CALL OUTS 04/15/2016 E 10-175-272-000-000 166.51 166.51 166.51 72739 04/20/2016 SIEMENS INDUSTRY INC 5610014395 MAR2016 TRAFFIC SIG MAINT 04/15/2016 E 64-175-710-402-000 48,562.20 48,562.20 48,562.20 72738 04/20/2016 SHELL FLEET MANAGEMENT 0000008000209687604MARCH 2016 FUEL VEHICLE 04/20/2016 E 10-187-258-000-000 4,133.00 4,133.00 4,133.00 72737 04/20/2016 SECURITY LINES US 1265 PUBLIC RIGHT-OF-WAY VIDEO SURVEILLANCE SYSTEM04/05/2016 72736 04/20/2016 SB FIRE DEPT HAZ MATERIAL GT416CC S.B. FIRE HSEHLD HAZRD WASTE FEES - 4TH QUARTER04/11/2016 E 10-190-250-000-000 880.00 E 32-200-250-000-000 1,115.00 1,995.00 1,995.00 E 13-445-701-000-000 18,135.00 18,135.00 18,135.00 72735 04/20/2016 ROSENOW SPEVACEK GROUP INC I001348 MAR PROPERTY TAX CONSULTING SVCS 04/05/2016 72734 04/20/2016 RJS GENERAL CONSTRUCTION 1309 PICO PARK SIDEWALK IMPROVEMENTS 04/20/2016 3.b Packet Pg. 35 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 E 09-440-220-000-000 209.55 209.55 2,349.92 E 09-441-220-000-000 2,140.37 2,140.37 603290544 FY 2015-16 C.CARE FOOD SUPPLIES 04/20/2016 E 70-110-700-001-000 590.16 590.16 590.16 72742 04/20/2016 SYSCO RIVERSIDE INC 6032905-43 FY 2015-16 C.CARE FOOD SUPPLIES 04/29/2016 72741 04/20/2016 STUDIO SPECTRUM INC 18314 REPAIR MICROPHONES IN THE CITY COUNCIL CHAMBERS04/19/2016 E 10-190-238-000-000 32.73 E 10-805-238-000-000 123.06 224.36 224.36 E 09-440-238-000-000 58.17 E 10-175-238-000-000 7.80 E 10-185-272-000-000 2.60 72740 04/20/2016 SO CA GAS COMPANY MAR 2016 GAS MARCH 2016 CNG FUEL AND NATURAL GAS USAGE04/29/2016 3.b Packet Pg. 36 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 1485 E 10-175-255-000-000 495.00 495.00 4,155.00 E 10-195-255-000-000 3,660.00 3,660.00 002-16469B PUBLIC WORKS SERVICES 03/09/2016 72746 04/20/2016 WILLDAN 002-16309 FY 2015-16 LAND DEVELOPMENT ENGINEERING SRVS01/12/2016 E 10-195-245-000-000 106.50 E 10-805-245-000-000 41.50 148.00 148.00 E 10-195-245-020-000 735.00 735.00 6,557.00 72745 04/20/2016 WESTERN EXTERMINATORS CO 4044420 MAR 2016 PEST CONTROL: CITY HALL, SR CNTR03/31/2016 E 10-195-245-020-000 5,822.00 5,822.00 4888 MARCH 2016 TREE SERVICE 03/11/2016 E 10-175-250-010-000 574.00 2,551.50 5,553.20 72744 04/20/2016 TREE PROS INC 4864 2015-16 CITY HALL TREE MAINTENANCE 03/11/2016 E 10-175-250-000-000 3,001.70 3,001.70 TRAFFIC ENG SVCS 02/17/2016 E 10-175-250-000-000 1,977.50 72743 04/20/2016 TRANSPORTATION ENGINEERING 1489 TRAFFIC ENG SVCS 03/25/2016 3.b Packet Pg. 37 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 E 09-440-220-000-000 328.94 328.94 328.94 E 10-195-246-000-000 475.00 475.00 475.00 72750 04/27/2016 CINTAS CORPORATION 150 150660505 PAPER SUPPLIES & OPERATIONAL ITEMS 04/20/2016 E 32-200-142-000-000 881.08 12,534.94 12,534.94 72749 04/27/2016 CHAMPION FIRE SYSTEMS INC 38796 4TH QTR SMOKE DETECTOR MONITORING - CITY HALL03/16/2016 E 10-380-142-000-000 203.06 E 10-450-142-000-000 626.85 E 16-175-142-000-000 345.80 E 10-125-142-000-000 366.40 E 10-175-142-000-000 1,143.34 E 10-370-142-000-000 366.40 E 09-440-142-000-000 1,919.03 B 10-022-61-00 4,907.24 E 10-120-142-000-000 1,775.74 E 09-440-235-000-000 155.22 155.22 155.22 72748 04/27/2016 CA PUB EMPLOYEES RETIRE SYSTEM2006 MAY 2016 PERS HEALTH INSURANCE 04/14/2016 72747 04/27/2016 AT AND T APR-MAY 2016 AT&TAPR-MAY 2016 CHILD CARE PHONE AND INTERNET SERVICES04/14/2016 3.b Packet Pg. 38 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 R 10-450-01 100.00 100.00 100.00 E 16-175-255-200-000 803.75 803.75 803.75 72755 04/27/2016 PATRICE LACY FLANAGAN 04052016PL REFUND DEPOSIT FOR SHELTER A AT RR PARK04/16/2016 E 10-450-245-000-000 136.20 136.20 136.20 72754 04/27/2016 INTERWEST CONSULTING GROUP 26099 FEB 2016 16 PAVEMENT MANAGEMENT SERVICES04/21/2016 E 10-110-142-000-000 150.00 150.00 150.00 72753 04/27/2016 HYDRO SCAPE PRODUCTS INC 09587463-00 CITY WIDE PARK REPAIRS 04/25/2016 E 10-125-230-000-000 90.65 90.65 596.85 72752 04/27/2016 WILLIAM HUSSEY MAR 2016 WH MAR2016 HEALTH INS REIMB-WH 04/02/2016 E 10-125-230-000-000 103.60 103.60 B2835870 ORDINANCE 289 PUBLICATION 02/24/2016 E 10-370-230-000-000 180.40 180.40 B2835867 ORDINANCE 288 PUBLICATION 02/24/2016 E 10-370-230-000-000 222.20 222.20 B2863326 PUBLIC NOTICES 03/29/2016 72751 04/27/2016 DAILY JOURNAL CORPORATION B2863328 PUBLIC NOTICES 03/29/2016 3.b Packet Pg. 39 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 140,352.00 140,352.00 E 10-410-255-000-000 5,814.65 E 10-410-256-000-000 126,242.73 E 14-411-256-000-000 8,294.62 E 10-140-241-000-000 248.00 248.00 248.00 72760 04/27/2016 SB COUNTY SHERIFF 15462 APR 2016 LAW ENFORCEMENT SRVCS 03/15/2016 R 10-450-01 50.00 50.00 50.00 72759 04/27/2016 ROADRUNNER SELF STORAGE INC20017 APR2016 STORAGE LEASE 04/20/2016 E 10-110-142-000-000 409.03 409.03 409.03 72758 04/27/2016 KARINA RIPLEY 04122016KR DEPOSIT REFUND TO KARINA RIPLEY FOR SHELTER04/16/2016 E 10-190-235-000-000 1,360.02 1,360.02 1,360.02 72757 04/27/2016 DARCY MCNABOE 161050015623 MAY HEALTH INSURANCE REIMBURSEMENT 04/26/2016 72756 04/27/2016 LEVEL 3 COMMUNICATIONS 43471296 APR PHONE AND INTERNET SERVICES 04/17/2016 3.b Packet Pg. 40 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 9762945944A E 10-175-240-000-000 38.01 38.01 430.84 E 09-440-235-000-000 60.00 E 10-175-240-000-000 332.83 392.83 FY 2015-2016 CELL CHARGES - CODE ENFORCEMENT04/01/2016 E 10-804-220-000-000 279.35 279.35 279.35 72766 04/27/2016 VERIZON WIRELESS 9762945944 PUBLIC WORKS & C. CARE CELL PHONES 04/27/2016 E 10-805-238-000-000 58.91 58.91 58.91 72765 04/27/2016 UPDOG 000617 EVENT POSTERS AND BANNER FOR THE ANNUAL ART SHOW04/06/2016 E 13-445-701-000-000 738.00 738.00 738.00 72764 04/27/2016 TIME WARNER CABLE 8448..3825 APR-MAYAPR-MAY 2016 SENIOR CENTER CABLE SERVICES04/23/2016 72763 04/27/2016 TIM GODDARDS PLUMBING 5241 NEW SINK INSTALLATION AT PICO PARK 03/08/2016 E 10-450-245-000-000 1,848.57 E 13-445-701-000-000 842.35 2,690.92 2,690.92 E 10-190-238-000-000 1,044.56 1,044.56 1,044.56 72762 04/27/2016 THE DISH FACTORY INC c124154 GT LITTLE LEAGUE SNACK BAR APPLIANCES 04/01/2016 72761 04/27/2016 SO CA GAS COMPANY JAN-MAR 2016 GASJAN-MAR 2016 NATURAL GAS USAGE 04/21/2016 3.b Packet Pg. 41 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register CITY OF GRAND TERRACE As of 4/30/2016 106 checks in this report E 33-300-250-000-000 4,500.00 4,500.00 4,500.00 Total Checks 506,272.07 B 23-200-14-00 CHILD CARE SEE'S FUNDRAISE 2,963.76 9,303.26 9,303.26 72769 04/27/2016 OMNICAP Q415121 TABS 2011A INTERIM EXCESS EARNINGS REPORT12/08/2015 E 10-175-268-000-000 CITY HALL MAINT. EXP 453.57 E 10-175-272-000-000 CITY HALL VEH SUPP/REP 2,316.80 E 10-805-235-000-000 SENIOR BUS PRGRM EXP 18.53 E 10-120-270-000-000 TRAVEL EXPENSE 50.00 E 10-140-210-000-000 FINANCE OFFICE SUPP 349.00 E 10-175-246-000-000 ALARM BATTERY 37.80 B 10-021-99-00 CITY HALL SUPP & CC EQUIP 1,349.92 E 10-120-210-000-000 CITY MGR OFFICE SUPP 568.68 E 10-120-268-000-000 TRAINING 232.90 E 09-440-223-000-000 CHILD CARE SUPP 78.99 E 09-440-272-000-000 CHILD CARE FOOD SUPP 136.20 E 09-441-220-000-000 CHILD CARE FOOD SUPP 408.61 E 09-440-210-000-000 CHILD CARE OFFICE SUPP 90.49 E 09-440-220-000-000 CHILD CARE FOOD SUPP 45.43 E 09-440-221-000-000 CHILD CARE FOOD SUPP 202.58 1,627.50 3,727.50 72768 04/27/2016 ARROWHEAD CREDIT UNION MAR/ APR VISA MAR/ APR VISA CHARGES 04/10/2016 E 26-600-250-000-000 930.00 E 26-601-250-000-000 398.50 E 26-602-250-000-000 299.00 E 13-445-250-010-000 2,100.00 2,100.00 010-28798 CONSULTING SERVICES: LANDSCAPE & LIGHTING DISTRICT09/14/2015 72767 04/27/2016 WILLDAN 005-13919 PICO PARK ADA IMPROVEMENT 02/26/2016 3.b Packet Pg. 42 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ( 1 9 1 3 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 4 3 0 2 0 1 6 ) AGENDA REPORT MEETING DATE: May 24, 2016 Council Item TITLE: Authority to Apply for Grant from CalRecycle Beverage Container Recycling Program PRESENTED BY: Yanni Demitri, Public Works Director RECOMMENDATION: Approve a Resolution Authorizing Submittal of Application for all CalRecycle Grants For Which the City of Grand Terrace is Eligible. 2030 VISION STATEMENT: This staff report supports Goal #1, Ensuring Fiscal Viability BACKGROUND: Pursuant to Public Resources Code section 14581 of the California Beverage Container Recycling and Litter Reduction Act, the Department of Resources Recycling and Recovery (CalRecycle) is distributing $10,500,000 in FY 2016 - 2017 to eligible cities and counties specifically for beverage container recycling and litter cleanup activities. The fundamental goal of this program is to reach and maintain an 80 percent recycling rate for all California Refund Value beverage containers (aluminum, glass, plastic, and bi-metal). Projects implemented by cities and counties will assist the state in reaching and maintaining this goal. DISCUSSION: Local governments in California are eligible to receive funding under this program, unless otherwise determined by CalRecycle. The eligible activities include: New or Existing curbside recycling programs. Neighborhood drop-off recycling programs. Public education promoting this program. Litter prevention and cleanup programs. Cooperative regional efforts between two or more cities, or counties, or both. Other beverage container recycling programs. Staff intends to spend the grant money on one or more of the above-mentioned programs. 4 Packet Pg. 43 CalRecycle grant application procedures require, among other things, an applicant’s governing body to adopt the attached resolution authorizing the City Manager to apply for CalRecycle grants. STAFF RECOMMENDATION Adopt attached resolution in support of this program. FISCAL IMPACT: City will receive $5,000 from CalRecycle. ATTACHMENTS:  Reso CalRecycle (DOC)  CalRecycle Reso - MUST USE THIS ONE (DOC) APPROVALS: Yanni Demitri Completed 05/12/2016 12:37 PM Finance Completed 05/18/2016 4:12 PM City Attorney Completed 05/18/2016 6:03 PM City Manager Completed 05/18/2016 7:09 PM City Council Pending 05/24/2016 6:00 PM 4 Packet Pg. 44 RESOLUTION OF THE CITY OF GRAND TERRACE AUTHORIZING SUBMITTAL OF APPLICATION FOR ALL CALRECYCLE GRANTS FOR WHICH THE CITY OF GRAND TERRACE IS ELIGIBLE WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the application, awarding, and management of the grants; and WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants. NOW, THEREFORE, BE IT RESOLVED that the CITY OF GRAND TERRACE authorizes the submittal of application to CalRecycle for Beverage Container Recycling Program for which The City of Grand Terrace is eligible. BE IT FURTHER RESOLVED that the City Manager or his designee is hereby authorized and empowered to execute in the name of the City of Grand Terrace all grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement the approved grant project; and BE IT FURTHER RESOLVED that these authorizations are effective for the 2015-2016 Fiscal Year Program 4.a Packet Pg. 45 At t a c h m e n t : R e s o C a l R e c y c l e [ R e v i s i o n 1 ] ( 1 9 1 1 : C a l R e c y c l e G r a n t - C o n s e n t C a l e n d a r ) AYES: NOES: ABSENT: ABSTAIN: ATTEST: __________________________ __________________________ Pat Jacquez-Nares Darcy McNaboe City Clerk Mayor 4.a Packet Pg. 46 At t a c h m e n t : R e s o C a l R e c y c l e [ R e v i s i o n 1 ] ( 1 9 1 1 : C a l R e c y c l e G r a n t - C o n s e n t C a l e n d a r ) Payment Program – Individual Jurisdiction RESOLUTION AUTHORIZING SUBMITTAL OF APPLICATION FOR PAYMENT PROGRAMS AND RELATED AUTHORIZATIONS WHEREAS, pursuant to Public Resources Code sections 48000 et seq., 14581, and 42023.1(g), the Department of Resources Recycling and Recovery (CalRecycle) has established various payment programs to make payments to qualifying jurisdictions; and WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the administration of the payment programs; and WHEREAS, CalRecycle’s procedures for administering payment programs require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of the payment program. NOW, THEREFORE, BE IT RESOLVED that The City of Grand Terrace, California is authorized to submit an application to CalRecycle for any and all payment programs offered; and BE IT FURTHER RESOLVED that the City Manager, or his/her designee, is hereby authorized as Signature Authority to execute all documents necessary to implement and secure payment; and BE IT FURTHER RESOLVED that this authorization is effective until rescinded by the Signature Authority or this governing body. Date Adopted ______________ ATTEST/CERTIFIED ____________________ (name(s) 4.b Packet Pg. 47 At t a c h m e n t : C a l R e c y c l e R e s o - M U S T U S E T H I S O N E ( 1 9 1 1 : C a l R e c y c l e G r a n t - C o n s e n t C a l e n d a r ) This page left intentionally blank. AGENDA REPORT MEETING DATE: May 24, 2016 Council Item TITLE: Zoning Code Amendment 15-01 Establishing a New Chapter 18.80 Signs PRESENTED BY: Sandra Molina, Planning & Development Services Director RECOMMENDATION: Read by Title Only, Waive Further Reading and Adopt AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, APPROVING ZONING CODE AMENDMENT 15-01, TO AMEND TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE BY REPEALING AND REPLACING CHAPTER 18.80 SIGNS IN ITS ENTIRETY AND AMENDING TITLE 5, CHAPTER 5.40 GARAGE SALES BY REVISING SECTION 5.40.070 SIGNS 2030 VISION STATEMENT: This item supports Goal #3, "Promote Economic Development", by updating the Sign Code and aligning it with the City's 2030 Vision and Economic Development Implementation Plan. BACKGROUND/DISCUSSION: On April 26, 2016, the City Council conducted a public hearing and voted to introduce and move to second reading adoption of a new Sign Code Ordinance. During the hearing, the Council made a change to require a Conditional Use Permit related to the Off-Site Sign Program. The attached ordinance reflects that change. An area of concern during the hearing was that the proposed ordinance did not allow the use of real estate open house signs in the City’s right of way. Staff discussed this with the City Attorney’s office and crafted language that would allow temporary signs in the right of way. Provided the business meets certain criteria it would be eligible for this type of signage. Proposed language for consideration is attached to the report. If it is the desire to the Council to allow temporary commercial signs in the right of way, staff would recommend re-introduction of the proposed ordinance to include new subsections 18.80.050.D (Temporary Off-Site Commercial Signs) to allow temporary off-site commercial signs and subsection 8.80.050.E (Exception and Appeal) for determinations to the exception. An example of temporary off site commercial signs would be real estate open house and yard sale signs. If it is not the desire of the Council to add these new provisions, then staff recommends adoption of the attached ordinance, as stated in the recommendation above. 5 Packet Pg. 48 FISCAL IMPACT: No fiscal impact. ATTACHMENTS:  Sign Code Ordinance 4.26.2016 (DOCX)  Temporary off-site commercial Signs section (050216) (DOCX) APPROVALS: Sandra Molina Completed 05/16/2016 12:47 PM City Attorney Completed 05/18/2016 6:16 PM Finance Completed 05/19/2016 9:08 AM City Manager Completed 05/19/2016 5:49 PM City Council Pending 05/24/2016 6:00 PM 5 Packet Pg. 49 April 26, 2016 Page 1 of 48 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, APPROVING ZONING CODE AMENDMENT 15-01, TO AMEND TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE BY REPEALING AND REPLACING CHAPTER 18.80 SIGNS IN ITS ENTIRETY AND AMENDING TITLE 5, CHAPTER 5.40 GARAGE SALES BY REVISING SECTION 5.40.070 SIGNS WHEREAS, the City of Grand Terrace, pursuant to its police power, has the authority to take appropriate action to address concerns regarding traffic safety and aesthetics, as they relate to signs (Metromedia Inc. v. City of San Diego, 453 U.S. 490 (1981)); and WHEREAS, the City Council recognizes that signs constitute speech protected by the First Amendment of the United States Constitution and by Art. 1, Sec. 2, of the Constitution of the State of California and that its regulation of signs must be consistent with these protections; and WHEREAS, the City Council finds that an uncontrolled proliferation of signs within the City is harmful to the public’s health, safety and welfare, in that such signs are aesthetically displeasing and constitute a traffic hazard, as drivers will be distracted by attempting to read an excessive number of signs that are placed in a haphazard manner; and WHEREAS, the City has a substantial interest in regulating signs in the manner set forth in this Ordinance, and the regulations modified and adopted hereby further the City’s substantial interests in traffic safety and aesthetics, in particular (National Advertising Co. v. City of Orange, 861 F.2d 246, 248 (9th Cir. 1988); Foti v. City of Menlo Park, 146 F.3d 629 (9th Cir. 1998)); and WHEREAS, the City Council recognizes that businesses have an interest in having signage that effectively advertises goods or services, and that is visible to potential customers; and WHEREAS, the City Council finds that the citizens of Grand Terrace and members of the public have an interest in identifying businesses, and the goods and services they provide; and WHEREAS, the City Council finds that the citizens of Grand Terrace and visitors to the City have a substantial interest in visiting, living and working in an aesthetically pleasing city; and 5.a Packet Pg. 50 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 2 of 48 WHEREAS, the City Council finds that the citizens of Grand Terrace and all those who travel in and through the City have a substantial interest in traffic safety within the City; and WHEREAS, the City Council finds that the City can balance its interests in aesthetics and traffic safety with the interests of businesses and consumers by limiting off-premises commercial signs, and by limiting the time, place, and manner of placement of commercial signs on commercial lots; and WHEREAS, commercial speech can be regulated more stringently than noncommercial speech; however, the City Council does recognize the need of businesses in the City to reasonably advertise their goods and services visibly and effectively; and WHEREAS, this ordinance relating to the regulation of signs includes a statement of purpose regarding the City’s substantial interest sought to be implemented by the regulations (Desert Outdoor Advertising, Inc. v. City of Moreno Valley, 103 F.3d 814, 819 n.2 (9th Cir. 1996), cert. denied, 522 U.S. 912 (1997); Central Hudson Gas & Electric Corp. v. Public Service Commission of New York, 447 U.S. 557 (1980)); and WHEREAS, the City intends, by adoption of these regulations, to eliminate any exemptions and/or regulations of signs based on content, in order that its sign regulations are content-neutral and entitled to the least restrictive constitutional analysis (see, e.g., National Advertising Co. v. City of Orange, 861 F.2d 246 (1987) (content based exemptions rendered the entire ordinance content based because the content of the sign’s message determines whether or not a particular sign is prohibited or permitted); Simon & Schuster, Inc. v. Members of N.Y. State Crime Victims Bd., 502 U.S. 105 (1991); Police Department of the City of Chicago v. Mosley, 408 U.S. 92 (1972)); and WHEREAS, these regulations allow on-site commercial signage while limiting off- site advertising signs, the City Council having found that onsite commercial speech is more valuable than offsite commercial speech, as permitted in Outdoor Systems, Inc. v. City of Mesa, 997 F.2d 604, 611 (9th Cir. 1993) and Metromedia Inc. v. City of San Diego, 453 U.S. 490 (1981); and WHEREAS, the City Council finds that, because signs are speech protected by the United States and the California Constitutions, detailed procedures are necessary to ensure that permits are issued or denied based on objective criteria and expeditiously with the due process of law; and WHEREAS, a message substitution provision has been added to the City’s sign regulations, allowing any sign regulated by the new provisions of this Ordinance to display a noncommercial message, so that the City’s regulations satisfy the constitutional mandate that it not restrict noncommercial signage to a greater degree than commercial signage.(see Clear Channel Outdoor, Inc. v. City of Los Angeles, 340 F.3d 810 (9th Cir. 2003); Outdoor Systems, Inc. v. City of Mesa, 997 F.2d 604 (9th Cir. 1993); and 5.a Packet Pg. 51 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 3 of 48 WHEREAS, the City Council finds that a proliferation of temporary signs in the public right-of-way can be detrimental to the aesthetic quality of the streets and sidewalks, can interfere with traffic safety, pedestrian access to public sidewalks and streets, and can obstruct the entrance to businesses and residences; and WHEREAS, the City Council specifically finds that temporary commercial signs are signs that relate to businesses for which on-premises signage do not provide adequate advertising of the goods or services sold because for many businesses is such that effective advertising by way of permanent on-premises signage is impractical: the business is of a transitory and temporary nature, the business' primary and most effective way to notify people of the available goods or services is by directing passers- by to the location of the goods or services, and the business does not have a fixed place of business or the goods or services themselves cannot practically be viewed and/or sold out of one business location or any business location; and WHEREAS, the City Council finds that human advertisements (as defined in this ordinance) within public rights of way, constitute a traffic hazard by their conduct, which distracts the attention of drivers away from the road and to a business or service; and WHEREAS, the City Council finds that prohibiting commercial conduct that is intended to, or that does in fact, attract the attention of drivers, furthers the city’s substantial interest in traffic safety (see, e.g., Sanctity of Life Network v. California Highway Patrol, 105 Cal. App. 4th 858, 862 (2003) (holding that protected First Amendment speech can be restricted if it interferes with traffic,)). NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA DOES ORDAIN AS FOLLOWS: Section 1. Chapter 18.80 (Signs) of Title 18 (Zoning) of the Grand Terrace Municipal Code is hereby repealed and replaced in its entirety with the following: “CHAPTER 18.80 SIGNS Sections: 18.80.010 Findings 18.80.020 Purpose 18.80.030 Policies for Sign Regulations 18.80.040 Definitions 18.80.050 Signs on Public Property 18.80.060 Permit Required 18.80.070 Application Review Procedures 18.80.080 Application Requirements 18.80.090 Appeals 18.80.100 Judicial Review of City Council’s Decision 18.80.110 Exempt Signs 18.80.120 Prohibited Signs 18.80.130 General Provisions 5.a Packet Pg. 52 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 4 of 48 18.80.140 Design Standards 18.80.150 Development Standards for Permanent On-Site Signs 18.80.160 Temporary On-Site Signs, Residential 18.80.170 Temporary On-Site Signs, Non-Residential Zones 18.80.180 Window Signs 18.80.190 Off-site Signs 18.80.200 Temporary Use and Special Event Signs 18.80.210 Parking of Advertising Vehicles 18.80.220 Non-Conforming Signs and Abandoned Signs 18.80.230 Compliance with Sign Code as Condition of Permit Approval 18.80.240 Penalty Section 18.80.010 Findings The City Council finds all of the following: A. The City, pursuant to its police power, has the authority to take appropriate action to address concerns regarding traffic safety and aesthetics, as they relate to signs (Metromedia Inc. v. City of San Diego, 453 U.S. 490 (1981)); and B. Signs constitute speech protected by the First Amendment of the United States Constitution and by Art. 1, Sec. 2, of the Constitution of the State of California and that its regulation of signs must be consistent with these protections; and C. An uncontrolled proliferation of signs within the City is harmful to the public’s health, safety and welfare, in that such signs are aesthetically displeasing and constitute a traffic hazard, as drivers will be distracted by attempting to read an excessive number of signs that are placed in a haphazard manner; and D. The City has a substantial interest in regulating signs and the regulations within this chapter further the City’s substantial interests in traffic safety and aesthetics, consistent with National Advertising Co. v. City of Orange, 861 F.2d 246, 248 (9th Cir. 1988); and Foti v. City of Menlo Park, 146 F.3d 629 (9th Cir. 1998).); and E. Businesses have an interest in having signage that effectively advertises its goods or services, and is visible to potential customers; and F. City residents and residents and visitors have an interest in identifying businesses, and the goods and services they provide; and G. City residents and visitors have a substantial interest in visiting, living and working in an aesthetically pleasing city; and H. City residents and visitors have a substantial interest in traffic safety within the City. I. The City has properly balanced its interests in aesthetics and traffic safety with the interests of businesses and consumers by limiting off-site commercial signs, 5.a Packet Pg. 53 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 5 of 48 and by limiting the time, place, and manner of placement of commercial signs on commercial lots; and J. Commercial speech can be regulated more stringently than noncommercial speech; however, the City Council recognizes the need of businesses in the City to reasonably advertise their goods and services visibly and effectively; and K. The City Council intends this Chapter to ensure its regulations are content-neutral and are the least restrictive means to achieve the goals set for the herein (see e.g., Reed v. Town of Gilbert, 135 S.Ct. 2218 (2015); and L. These regulations allow on-site commercial signage while limiting off-site advertising signs, the City Council having found that onsite commercial speech is more valuable than offsite commercial speech, as permitted in Outdoor Systems, Inc. v. City of Mesa, 997 F.2d 604, 611 (9th Cir. 1993) and Metromedia Inc. v. City of San Diego, 453 U.S. 490 (1981); and M. Because signs are speech protected by the United States and the California Constitutions, detailed procedures are necessary to ensure that permits are expeditiously issued or denied based on objective criteria and consistent with due process of law; and N. A message substitution provision has been added to the City’s sign regulations, allowing any sign regulated by the new provisions of this Ordinance to display a noncommercial message, so that the City’s regulations satisfy the constitutional mandate that it not restrict noncommercial signage to a greater degree than commercial signage.(see Clear Channel Outdoor, Inc. v. City of Los Angeles, 340 F.3d 810 (9th Cir. 2003); Outdoor Systems, Inc. v. City of Mesa, 997 F.2d 604 (9th Cir. 1993); and O. Proliferation of temporary signs in the public right-of-way can be detrimental to the aesthetic quality of the streets and sidewalks, can interfere with traffic safety, pedestrian access to public sidewalks and streets, and can obstruct the entrance to businesses and residences; and P. Temporary commercial signs are signs that relate to businesses for which on-premises signage do not provide adequate advertising of the goods or services sold because for many businesses is such that effective advertising by way of permanent on- premises signage is impractical: the business is of a transitory and temporary nature, the business' primary and most effective way to notify people of the available goods or services is by directing passers-by to the location of the goods or services, and the business does not have a fixed place of business or the goods or services themselves cannot practically be viewed and/or sold out of one business location or any business location; and Q. Human advertisements (as defined in this ordinance) within public rights of way, constitute a traffic hazard by their conduct, which distracts the attention of drivers away from the road and to a business or service; and 5.a Packet Pg. 54 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 6 of 48 R. Prohibiting commercial conduct that is intended to, or that does in fact, attract the attention of drivers, furthers the city’s substantial interest in traffic safety (see, e.g., Sanctity of Life Network v. California Highway Patrol, 105 Cal. App. 4th 858, 862 (2003) (holding that protected First Amendment speech can be restricted if it interferes with traffic)). 18.80.020 Purpose. A. These regulations are intended to protect the public health, safety, and welfare and provide for the integrity and preservation of community aesthetics through modern implementation of a uniform set of rules and regulations. The City of Grand Terrace recognizes and, strongly supports, the needs of merchants and property owners to identify their businesses through signage and other means of advertisement. The city, further, recognizes that size, placement, number, and design of signs significantly influences the general perception of both the community’s visual environment and its economic health, and that signs should not become visual distractions along public roadways. In addition, these regulations are intended to accomplish the following: 1. Promote an economically stable and visually attractive community consistent with the City’s goals and strategies. 2. Promote signs and graphics that are attractive, pleasing, and harmonized with the physical character of the environment and surrounding properties, while serving the identification needs of the business community. 3. Eliminate visual clutter while providing reasonable opportunities for adequate identification of businesses and the goods and services they offer. 4. Prevent an inadvertent favoring of commercial speech over noncommercial speech. 5. Direct the proper design and location of signs to reduce, or eliminate, potential hazards and promote the safe movement of vehicles and pedestrians throughout the city. 6. Direct persons to various activities and enterprises in order to provide for maximum public convenience. 18.80.030 Policies for sign regulations. The following policies regarding signage in the city are established: A. Regulatory Interpretations. The requirements of this chapter shall not be interpreted to nullify any easements, covenants, or other private agreements that provide for more restrictive sign regulations than are required by this chapter. B. Message Neutrality. It is the city’s policy and intent to regulate signs in a viewpoint-neutral and/or content-neutral manner. The message of the sign shall 5.a Packet Pg. 55 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 7 of 48 not be reviewed except to the minimum extent necessary to identify the type of sign. C. Message Substitution. A noncommercial message of any type may be substituted in whole or in part for the message displayed on any sign for which the sign structure or mounting device is authorized pursuant to this chapter. The purpose of this requirement is to prevent any inadvertent favoring of commercial speech over noncommercial speech, or favoring of any particular noncommercial message over any other noncommercial message. D. In no instance may commercial or non commercial messages contain “obscene matter” as defined in California Penal Code section 311. E. General Prohibition. Any permanent or temporary sign not expressly permitted by this chapter is prohibited. F. Off-site signs are prohibited, unless specifically authorized by this Chapter. Section 18.80.040 Definitions A. The following words and phrases have the meanings set forth herein, unless it is apparent from the context that another meaning is intended: 1. Abandoned sign. Any display or sign remaining in place or not maintained for a period of ninety (90) calendar days which no longer identifies an ongoing business, product, or service available on the premises where the display or sign is located or where the building, business, or establishment to which the display or sign is related has ceased operation. For purposes of this definition, abandonment for the applicable period shall be deemed conclusive evidence of abandonment regardless of the property, business, or sign owner’s intent. 2. A-frame sign. See Portable freestanding sign 3. Alteration. Any change of size, shape, illumination, position, location, construction or supporting structure of an existing sign. 4. Animated sign. A sign which moves or appears to move in whole or part including, but not limited to, signs which swing, twirl, move back and forth or up and down; or signs which change color or shades of color or any other method or device which suggests movement. Animated signs do not include electronic message signs. 5. Awning. A roof-like cover that projects from the wall of a building for the purpose of shielding a doorway or window from the elements. 6. Awning sign. A sign displayed, written, silkscreened, or attached on an awning. 5.a Packet Pg. 56 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 8 of 48 7. Balloon, inflatable sign, or inflatable attention-getting device. Any air or gas filled device located, attached, or tethered to the ground, site, merchandise, building, or roof and used for the purposes of signage, advertising or attention-getting. 8. Banner. Any sign of durable cloth, plastic, or similar non-rigid material that is attached to a building. 9. Banner, feather. Any sign of durable cloth, plastic, or similar non-rigid material that is attached to a pole, commonly referred to as a feather banner. See “Flag banner”. 10. Billboard. An outdoor advertising structure that advertises products, services or activities not conducted or performed on the same site upon which the outdoor advertising sign structure is located, and that is subject to the provisions of Section 5490 et seq. of the Business & Professions Code. 11. Building face. That portion of any exterior elevation of a building extending vertically from grade to top of a parapet wall or eaves, and horizontally across the entire width of the building elevation, excluding corners, bay windows, balconies, or other architectural features which extend beyond the general outermost surface of the exterior wall. 12. Cabinet sign. A sign constructed of a solid cabinet consisting of one or more translucent panels containing sign copy, which are interchangeable and which are affixed to an internally illuminated box or cabinet mounted on a building or monument, and not sculpted to the shape of its contents. Commonly referred to as a “can sign”. 13. Canopy. A structural or ornamental roof-like appendage attached to and projecting from a building. 14. Canopy sign. A sign attached beneath or placed upon the structural projection or canopy of a building. 5.a Packet Pg. 57 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 9 of 48 15. Changeable copy sign. The changing of a commercial or non-commercial message on a lawfully erected sign. A change of copy does not include the following (all of which acts shall be considered as the placing of a new sign): any alteration or reconfiguration of the outside dimensions of a sign, any structural modifications of a sign and/or relocation of all or any portion of a sign. 16. Channel letters. Individual letters that are independently mounted to a wall or other surface and internally illuminated with a covered face. The “air space” between the letters is not part of the sign structure but rather of the building façade. A logo may also be considered a channel letter or sculpted can sign provided it is clearly distinguishable from other sign elements. 17. City. The City of Grand Terrace. 18. City Engineer. The City Engineer of the City of Grand Terrace, or designee. 19. City Manager. The City Manager of the City of Grand Terrace, or designee. 20. Clear Sight Triangles a. View Obstructions. Adequate visibility for vehicular and pedestrian traffic shall be provided at clear sight triangles at all 90 degree angle intersections of public rights-of-way and private driveways. i Prohibited. The following shall be prohibited within a clear sight triangle: (A) Monument signs. (B) Hedges or shrubbery. ii Maximum Height Requirements. The following shall not be erected, placed, planted, or allowed to grow over 30 inches in height above the nearest street curb elevation within a clear sight triangle: (A) Signs. (B) Mounds of earth. (C) Other visual obstructions. iii Exceptions. The requirements for clear sight triangles shall not apply to: (A) Freestanding signs when the lower edge of the sign face is at least eight feet above grade and when there are no more than two posts or columns, each with a maximum width or diameter of 12 inches, supporting the sign. 5.a Packet Pg. 58 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 10 of 48 b. Dimensions and Location. Clear sight triangles are right triangles that shall be measured as follows: i The 90-degree angle is formed by the intersection of either: (A) The intersection of the edges of two roadways as measured at the edge of their ultimate planned right-of-way; or (B) The intersection of the edge of a private driveway or alley and the edge of the ultimate planned right-of-way of an intersecting roadway. ii The two 45-degree angles of a clear sight triangle shall each be located as follows: (A) Public street intersections - 30 feet from intersection. (B) Public street and private driveway or alleyway - 10 feet from the intersection. 21. Commercial message. Any sign, wording, logo, or other representation that names or advertises a business, product, service, or other commercial activity. 22. Convenience sign. Means a sign not larger than two square feet which conveys information, such as "restrooms," "no parking," "entrance" and the like, but does not contain land, trade, advertising or business identification, and is designed to be viewed on site by pedestrians and/or motorists. 23. Copy. Any written words, letters, symbols, emblems, designs, figures, and logos used to attract attention to, or identify, a land use. 24. Decorative banner or flag. A festive graphic display that is made of durable cloth, plastic or similar non-rigid material, and that either displays no message or displays only a predominantly pictorial message that does not directly identify or advertise a business on the premises. No signs, plantings or other obstructions over 30” in this area. Clear Sight Triangle 5.a Packet Pg. 59 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 11 of 48 25. Directional sign. Any sign intended to be permanently affixed and utilized only for the purpose of indicating the direction of any object, place, or area. 26. Director. The Director of Planning and Development Services of the City of Grand Terrace, including designee. 27. Directory sign. A pedestrian-oriented sign, or set of similarly designed individual signs, placed or displayed in sequence, located at a multi-tenant building or within a shopping center, to list all or part of the businesses within a building or shopping center. The copy of a directional sign is not readable from the public roadway or parking lot. 28. Drive-through menu board. A single-sided sign located in the drive-through area of a fast-food restaurant, typically containing an attached or detached speaker and/or verification screen for communicating orders. 29. Electronic message sign. A sign with the capability of presenting variable message displays by projecting an electronically controlled light pattern against a contrasting background and which can be programmed to change the message display periodically. 30. Exempt Sign. A sign which is not subject to a sign permit. 31. Flag Sign. Any sign or device in the nature of a banner, flags or other object, designed and installed in such a manner as to move upon being subject to pressure by wind or breeze. Flag signs must be made of fabric or other similar non-rigid material supported or anchored along only one edge. Also referred to as a feather banner, swooper, or teardrop banner. 32. Flashing sign. Any sign which contains, or is illuminated by, lights which change in intensity or colors, or which create the illusion of flashing in any manner. Flashing signs do not include electronic message signs. 33. Freestanding sign. A permanent sign that is self-supporting in a fixed location detached from any building or wall. Freestanding signs include, but are not limited to, monument signs, pole signs, and pylon signs. 34. Freeway sign. A freestanding sign between 50 feet and 100 feet in height located within 250 feet of the right of way of Interstate 215. 35. Frontage, building. The exterior building wall of a structure on the side or sides of the structure fronting and oriented toward a public street or highway, excluding eaves or roof overhangs. Building frontage shall be measured continuously along the structure’s wall for the entire length of the business establishment. 36. Frontage, street or highway. Any portion of a lot or parcel of land which abuts a public street or highway. Street or highway frontage shall be measured 5.a Packet Pg. 60 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 12 of 48 along the common lot line separating a lot or parcel of land from the public street or highway. 37. Gasoline price sign. Sign located at fuel stations which, typically, identify the brand or type and price of gasoline sold. 38. Glare. The effect produced by brightness sufficient to cause annoyance, discomfort, or loss in visual performance and visibility. 39. Height. The greatest vertical distance measured from the finished grade to the top of a sign, a sign structure, or advertising display and any accompanying architectural feature of the sign. However, if the sign is constructed upon any artificial berm, the height of the sign, as measured from the toe of the slope or berm, shall not exceed 125% of the maximum height allowed by this title 40. Holiday and seasonal decoration. Lighting and other materials, including festive flags, in the nature of decorations, clearly incidental to and customarily and commonly associated with any national, state, local or religious holiday. 41. Human advertisement. Any person who is located anywhere within the city, and that advertises a business or service, by way of his or her actions, including but not limited to, by holding a temporary sign, wearing a costume, or wearing body paint. 42. Illegal sign. Any sign placed without all required government approvals and permits at the time it was placed, or an existing sign that was not constructed in accordance with the ordinances and other applicable laws in effect on the date of construction. 43. Illuminated Sign. A sign with an artificial light source incorporated internally or externally for the purpose of illuminating the sign; includes signs made from neon or other gas tube(s) that are bent to form letters, symbols, or other shapes. An illuminated sign excludes electronic message signs, which are separately defined. 44. Inflatable balloon sign. A sign consisting of balloons and inflatables made of metallic and/or cloth material, regardless of the size that is used, for the purpose of attracting attention. 45. Logo. A visual symbol, representation, or character identifying the business or service provided. 46. Linear frontage. The horizontal distance measured along the building frontage facing the street. In cases where a business has no building frontage facing a street, the building frontage with the primary business entrance shall be considered the primary building frontage (e.g. an entrance facing a courtyard). For multi-tenant buildings, ground floor tenants may have their 5.a Packet Pg. 61 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 13 of 48 primary frontage determined independently from the rest of the building based on the aforementioned rules. 47. Maintenance. Replacement of copy, change of color, maintenance, or repair made to a sign. 48. Menu/Order board sign. A sign installed in a drive-through facility and oriented so as to be visible primarily by drive-through customers. 49. Modification. Any alteration, repair or refurbishing of any sign that alters its physical dimensions, or any integral component of the sign including, but not limited to, alterations to exterior cabinets, bases, poles or sign copy. 50. Monument sign. See “Freestanding Sign”. 51. Noncommercial Sign. A sign that displays noncommercial speech, e.g., commentary or advocacy on topics of public debate and concern. 52. Nonconforming Sign. A sign lawfully erected that does not comply with the provisions of this chapter. 53. Off-Site Sign. A sign that directs attention to a business, profession, commodity, service, or entertainment conducted, sold, or offered at a location other than where the sign is located. 54. On-Site Sign. A sign which directs attention to a business, profession, commodity, service, or entertainment conducted, sold, or offered upon the lot or parcel on which the sign is placed. In the case of multiple-tenant commercial or industrial development, a sign is considered on-site whenever it is located anywhere within the development. In the case of a duly approved Sign Program, a sign anywhere within the area controlled by the program may be considered on-site when placed at any location within the area controlled by the program. Any sign displaying a noncommercial message constitutes an on-site sign. 55. Painted Sign. A sign that comprises only paint applied on a building or structure. 56. Pennant. Any lightweight plastic, fabric, or other material, whether or not containing a message of any kind, attached to a rope, wire, or string, usually in a series, designed to move in the wind and attract attention. 57. Permanent sign. All signs referred to in Chapter 18.80, except for temporary signs. 58. Portable sign. Any sign not permanently attached to the ground or to a building, which is intended to be movable or capable of being moved from place to place, whether or not wheels or other special supports are provided. This definition includes an A-frame sign. 5.a Packet Pg. 62 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 14 of 48 59. Projecting sign. A sign that projects more than twelve (12) inches from the exterior face of a building wall or façade and which uses the building wall as its primary source of support. 60. Pylon sign. A freestanding sign designed with its vertical dimension greater than its horizontal dimension and supported by a single pedestal base or architecturally integrated support posts. 61. Readerboard. A sign containing, in whole or in part, electrical devices allowing for changing copy, text, or content. Electric time and temperature signs are not considered readerboards. 62. Real estate sign. A temporary sign advertising the sale or lease of real property. The sign may include the identification and contact information of the person and/or company handling such sale, lease, or rent. 63. Roof sign. A sign erected, constructed, painted, or placed upon or over a roof or parapet wall of a building and which is wholly or partly supported by the building or roof structure. 64. Sign. Any writing (including letter, word, or numeral), pictorial presentation (including illustration or decoration), emblem (including device, symbol or trademark), flag (including banner or pennant) or any other device, figure, or similar character which: a. Is a structure or any part thereof, or is attached to, painted on, or in any other manner represented on a building, other structure or device; and b. Is used to announce, direct attention to, or advertise; and c. Is visible from the outside of a building. 65. Sign area. The entire area within a single continuous perimeter which enclose the extreme limits of writing, representation, emblem, or any figure of similar character, background area, trim, or other material, light or color forming an integral part of the display or used to differentiate such sign from the background against which it is placed. In the case of a sign designed with more than one exterior surface, the area shall be computed as including only the maximum single display surface which is visible from any ground position at one time. The supports, trim, frame, or uprights on which any such sign is supported shall not be included in determining the sign area. 5.a Packet Pg. 63 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 15 of 48 66. Sign face. That area or portion of a sign on which copy is intended to be placed. 67. Sign program. A detailed graphic and narrative plan that establishes the specific sign regulations and common aesthetic design characteristics that apply to all signs for a particular ownership parcel, or for a particular area that may include two or more separate but contiguous ownership parcels, and which may include a development project, shopping center, or business complex. 68. Temporary sign. A structure or device used for the public display of visual messages or images, which is easily installed with or without common hand tools and which is not intended or suitable for long-term or permanent display due to lightweight or flimsy construction materials. Examples include banners, flags, or similar ground mounted nonpermanent signs made of paper, cloth, canvas, lightweight fabric, or other non-rigid material, with or without frames. 69. Wall sign. A sign attached to or erected against the wall of a building or structure with the exposed face of the sign parallel to the plane of such wall. 70. Window sign. Any permanent or temporary sign, picture, letter, character, or combination thereof, designed to communicate information about an activity, business, commodity, event, sale, or service that is placed upon and/or inside and/or within 3 feet of a window for the purpose of being visible from the exterior of the window.” Section 18.80.050 Signs on public property. A. General Prohibition. Except as provided for in this section, no signs may be displayed on city property by private parties. Any sign posted on city property in violation of this section may be summarily removed by the city. B. The following signs are exempt from the provisions of this sign code: 1. Traffic control and traffic directional signs erected by the city or another governmental unit. 2. Official notices required or authorized by law. 3. Signs placed by any governmental agency, utility or special district, in furtherance of these entities’ official functions. C. Human Advertisements. All human advertisement is prohibited on public property in the City of Grand Terrace. 5.a Packet Pg. 64 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 16 of 48 Section 18.80.060 Permit required. The following permits shall be required for signs: A. Sign Permit. 1. Applicability. A sign permit shall be required for all permanent signs (building attached or freestanding) prior to erection, relocation, alteration, or replacement of a sign, unless otherwise exempted by this chapter. A Sign Permit shall not be required for general maintenance of existing signs or the replacement of the sign face (including message) when the area of the sign is not being changed and a building permit is not required (e.g., the replacement of a sign face on a can sign). 2. Approval authority. The designated approving authority for sign permits shall be the city manager, or his or her designee. 3. Approval findings. A sign permit shall be granted when the city manager, or his or her designee finds the proposal to be in conformance with all applicable provisions of this chapter. 4. Additional permits. In addition to a sign permit, a building permit may also be required. B. Temporary Sign Permit. 1. Applicability. A temporary sign permit shall be required for all temporary signs (building-attached or freestanding), prior to erection or placement, unless otherwise exempted by this chapter. 2. Approval authority. The designated approving authority for temporary sign permits shall be the director. 3. Approval findings. A temporary sign permit shall be granted when the director finds the proposal to be in conformance with all applicable provisions of this title. C. Sign Program. 1. Purpose and intent. A sign program provides a process for the city’s review of, and decisions related to, requests for signs for multi-tenant projects. The intent of a sign program is to allow for the integration of a project’s signs with the design of the structures so as to achieve architectural consistency. 2. Applicability. A sign program shall be required for all new multi-tenant shopping centers, office parks, and other multi-tenant, mixed-use, or otherwise integrated developments of three (3) or more separate tenants/uses that share buildings, public spaces, landscape, and/or parking facilities. 5.a Packet Pg. 65 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 17 of 48 3. Approval authority. The designated approving authority for sign programs shall be the planning commission acting as the site and architectural review committee. 4. Approval findings. A sign program, or revisions thereto, may be approved only when the site and architectural review committee makes all of the following findings: a. That the proposed sign program is consistent with the development standards for signs as provided in this chapter; and b. The design, location, and scale of proposed signs for the integrated development are in keeping with the architectural character of the development. 5. Conditions of approval. The designated approving authority may impose conditions in order to ensure compliance with this title and to prevent adverse or detrimental impacts to the surrounding neighborhood. Section 18.80.070 Application review procedures. A. Method of Application. An application for a sign permit, temporary sign permit, sign program shall be made on the form(s) prescribed by the planning department. The application shall be accompanied by any fees as specified by city council resolution. B. Levels of Review. All sign permit applications shall be reviewed by the city manager or director as designated by this chapter. Appeals of the city manager or director’s decision on a sign permit application shall be submitted to the planning commission. Appeals of the planning commission’s decision on a sign permit application shall be submitted to the city council. The city council’s decision regarding such appeals shall be final. C. Timely Decision. The city manager’s or director’s shall issue a decision in writing within thirty (30) days of receipt of a complete application. The timely decision requirement may be waived by the applicant. If a decision is not rendered within the required time, the application shall be deemed granted. D. Processing of Applications. 1. Completeness. If the city manager or director determines that the application is incomplete, the city manager or director shall notify the applicant in writing within five days for sign permits, and within 15 days for sign programs, of receipt of the application, and the reasons therefore, including any additional information necessary to render the application complete. 2. Denial of permit. A permit application will be denied if any of the following occurs: 5.a Packet Pg. 66 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 18 of 48 a. The applicant has installed a sign in violation of the provisions of this chapter anywhere on the subject property and, at the time of submission of the application, the illegal sign has not been legalized, removed, or included in the application so as to be brought into compliance; or b. The applicant has not obtained any applicable required zoning clearance for the property where the proposed sign would be located. E. Multiple Sign Applications. When an application proposes two or more signs, the application may be granted either in whole or in part, with separate decisions as to each proposed sign. When an application is denied in whole or in part, the city manager’s or director’s written notice of determination shall specify the grounds for such denial. F. Right to Permit. When any sign application complies fully with all applicable provisions of this chapter, and with all other applicable laws, rules, and regulations, the permit shall be approved and issued within the required time. G. Permit Denial. When a permit application is denied, the denial shall be in writing and delivered to the address shown on the applicant’s form, and shall state the grounds for denial. H. Appeal. The appeal right arises whenever a written decision is delivered to the applicant. In this context, “delivered” means either when it is personally delivered or 5 days after it is placed in the US mail, whichever occurs first. I. Time for Appeal. Any affected party may appeal in writing any sign permit decision, so long as the notice of appeal is delivered to the city within 10 calendar days of the date the director’s or planning commission’s decision is delivered. J. Status Quo. Pending an appeal, the status quo of the subject sign(s) shall be maintained. This does not apply whenever a sign, by virtue of its physical condition, constitutes a significant and immediate threat to public safety. K. Appeal Hearing Procedure. Appeal hearings required by this section shall be conducted in accordance with the procedures set forth in Section 18.80.090 below. L. Judicial Review. Following final decision by the City Council, any affected party may seek judicial review of the final decision on a sign application pursuant to California Code of Civil Procedure §1094.8. M. Permits Issued in Error. The City may summarily revoke any approval or permit issued in error at any time before substantial work in reliance upon the permit has been accomplished, by the city issuing written notice to the holder of the reason for the revocation. N. Additional permits. A sign permit shall not be valid unless all applicable building and electrical permits related to the sign are lawfully issued and finaled by inspection by the appropriate department. 5.a Packet Pg. 67 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 19 of 48 Section 18.80.080 Application requirements. A. Sign Permit. The application for a sign permit shall be made on the form provided by the director and shall be accompanied by a processing fee established by resolution of the city council. The application shall contain all of the following information and materials, except that some requirements may be waived by the city manager or director when not applicable to the type of sign being proposed. 1. Site Plan. Three sets of a scaled and dimensioned site plan showing: a. North arrow, scale, date drawn, applicant, contact person and phone number(s); b. Property lines and fronting streets, with street names labeled; c. Location and dimensions of the building(s) upon which wall sign(s) are proposed; d. Relationship of the proposed sign to existing or proposed adjacent buildings, structure, signs, property lines, streets, and driveways on or adjacent to the parcel where the sign is to be located (may not be needed for wall-mounted signs). e. Where directional signs are proposed, the location of off-street parking facilities, including major points of entry and exit for motor vehicles. 2. Building Elevations. Three sets of scaled and dimensioned building elevations of each side of a building where signs are proposed depicting each proposed sign. 3. Landscape Plan. Three sets of scaled and dimensioned landscape plan showing all landscaped areas required for freestanding signs, and shall indicate the location of all proposed plant material, common and botanical names, quantities and sizes. 4. Sign specifications. Three sets of scaled and dimensioned sign specifications showing proposed design, size, exact colors, materials and location of the sign or sign structure. 5. Construction plans. Three sets of scaled and dimensioned plans depicting construction details, method of attachment and electrical specifications for each sign; and, 6. Any proposed lighting, including internal and external illumination. Information on lighting intensity may be required, as determined necessary by the director. B. Temporary Sign Permit. 1. No temporary on-site signs may be erected without a permit. 5.a Packet Pg. 68 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 20 of 48 2. Temporary sign permits may be obtained at the Planning Division and are issued pursuant to an expedited permit process. Permits for temporary signs that are in conformance with the applicable provisions of this chapter will be issued within 2 business days of application. 3. The application for a sign permit shall be made on the form provided by the director and shall be accompanied by a processing fee established by resolution of the city council. The application shall contain all of the following information and materials, except that some requirements may be waived by the director when not applicable to the type of sign being proposed a. Proposed sign dimensions, fabrication, colors, and fonts. b. Number of temporary signs per business. c. A plot plan showing the proposed placement of temporary signs. d. Proposed time duration of sign placement. C. Sign Program requirements. 1. Application. The application for a sign program shall be made on the form provided by the director and shall be accompanied by a processing fee established by resolution of the city council. 2. Contents. A Sign Program shall include the following information: a. A coordinated design theme, incorporating uniform design elements for various types of signs to be used in the project area, including wall signs, freestanding signs, canopy and awning signs, directional signs, and others as appropriate; b. Desired use, design, location and size of temporary signs, including window signs, special event signs, flags, banners, portable signs, and others, as appropriate; c. The desired size, area and location of signs to be located throughout the project site; d. Methods by which signs will be attached to buildings and structures; e. Methods and levels of illumination; f. Choice of colors and lettering styles; and g. Those items identified in subsection 18.80.080.A(1) through (A)(4) and (A)(6) of this section. 5.a Packet Pg. 69 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 21 of 48 Section 18.80.090 Appeals. A. A decision by the city manager or director to conditionally grant, deny, or revoke a sign permit may be appealed to the planning commission. The applicant must submit a written request for an appellate hearing by the planning commission to the city clerk within 10 days of the date the city manager or director’s decision is delivered to the applicant. The written request must be accompanied by a processing fee, as determined by city council resolution. Failure to timely appeal a decision to the planning commission, or submission of a written request without the processing fee, is deemed a waiver of the right to appeal the decision. B. A decision by the planning commission to conditionally grant, deny, or revoke a sign permit, including a ruling on an appeal of the director’s decision on a sign matter, may be appealed to the city council. The applicant must submit a written request for an appellate hearing by the city council to the city clerk within 10 days of the date the planning commission’s decision is delivered to the applicant. The written request must be accompanied by a processing fee, as determined by city council resolution. Failure to timely appeal a decision to the city council, or submission of a written request without the processing fee, is deemed a waiver of the right to appeal the decision. C. Within 10 days of receipt of the written request and processing fee, the city clerk must notify the applicant of a hearing date. The hearing date must be within 30 days of the date of mailing of the notice for the hearing. Section 18.80.100 Judicial review of city council’s decision. The city council’s decision is final. The decision is deemed final on the day that it is deposited into the U.S. mail, addressed to the appellant at the address provided on the sign permit application, or delivered in person to the appellant. The notice of decision must provide that the appellant has the right to challenge the city council’s decision in a court of law, in accordance with the provisions of Sections 1094.8 of the California Code of Civil Procedure. Section 18.80.110 Exempt signs. The following sign types are expressly exempted from the permit requirements of this chapter but still must satisfy any and all other applicable permit requirements when necessary (e.g., building, electrical, plumbing, grading, encroachment); and shall comply with Section 18.80.130.(F) (Interference with Motorists Field of Vision). A. Exempt Signs Without Limitations. The following are exempt from sign permit and City review requirements: 5.a Packet Pg. 70 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 22 of 48 1. Official traffic signs or other municipal governmental signs, legal notices, advertisements prescribed by law and placed by governmental entities, and signs indicating the location of buried utility lines or any notice posted by a governmental officer in the scope of his or her duties. 2. Direction, warning, or information signs or structures required or authorized by law, or by federal, state, county, or City authority, including, but not limited to, traffic control signs (e.g., stop, yield), highway route number signs, and construction zone signs. 3. Noncommercial utility company signs identifying cables, conduits, and dangerous situations. 4. Street address signs on buildings and building identification signs consistent with the City-adopted building code or relevant provisions of the City Municipal Code. Notwithstanding anything in this Section, street address signs may be illuminated and may contain reflective paint or material. 5. Signs and advertising for the California state lottery as authorized by California Government Code §8880 et seq. 6. Any sign located entirely within a building and not within three feet of a window, and which is not visible from the exterior of the building, is exempt from the requirements of this chapter. B. Exempt Signs with Limitations. The following signs are exempt from a Sign Permit and City review, provided that they meet the size, height, duration, and/or maximum number limitations listed: 1. Signs on non-residential property undergoing permitted construction not exceeding thirty-two (32) square feet each in area per side, maximum of two sides 64 square feet total, fifteen feet (15’) in height, and set back a minimum of ten (10’) feet from the property line. One such sign is permitted per street frontage. a. A maximum of 6 flags with a maximum sign area of 15 square feet per flag, not to exceed 15 feet in height is permitted b. Such signs shall not be illuminated and shall be removed within five (5) days of the earliest of the following events: final building inspection approval, issuance of a valid certificate of occupancy, opening for business to the public, or expiration of the building permit 2. Signs on property for sale or lease as follows: a. On residential property, one (1) sign not exceeding four (4) square feet and not exceeding a height of five feet (5'). b. On multi-family property with more than twelve (12) dwelling units, one (1) sign per street frontage, not exceeding twenty-four (24) square feet in 5.a Packet Pg. 71 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 23 of 48 area attached to the building or freestanding. All signs shall be located outside the public right-of-way and shall not be illuminated. c. On nonresidential and mixed-use property, one (1) sign per street frontage, not exceeding thirty-two (32) square feet in area or eight feet (8') in height. The sign shall not be illuminated. One noncommercial flag per street frontage, per property. 3. Window signs consistent with the development standards of this chapter. 18.80.120 Prohibited signs. A. The signs listed in this section are inconsistent with the purposes and requirements of this chapter and, as such, are prohibited in all zoning districts. Construction, installation, or placement of the following types of signs after the effective date of this ordinance is prohibited: 1. Any sign erected without a permit, or erected not in compliance with this chapter or with its predecessor sign code. 2. Animated signs. 3. Any sign containing fluorescent or Day-Glo colors. 4. Can and cabinet signs, except sculpted cabinet signs. 5. Flashing signs, unless otherwise permitted as an electronic sign under this chapter.. 6. Inflatable balloon signs, including, but not limited to, individual balloons, balloon strings, and other inflatable objects made of a flexible material and inflated so as to be lighter than air. This category also includes air- activated or air-blown signs and “air dancer” signs. 7. Human advertisement signs, except as permitted under section 18.80.160(E). 8. Off-site signs, except as specifically authorized by this Chapter. 9. Painted wall signs. 10. Pennants. 11. Pole signs. 12. Roof signs. 13. Signs that produce smoke, sound, or other emissions. 14. Signs which are mobile, rotate, or move, except human signs. 5.a Packet Pg. 72 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 24 of 48 15. Signs which block a pedestrian path of travel or ingress and egress to a business or driveway. 16. Signs placed on the public right-of-way or affixed to an element or structure on the public right-of-way, or located on a publicly owned tree, fence, or utility pole or otherwise posted on public property, unless specifically allowed by this Chapter; or 17. Signs on private property affixed to fences, trees, shrubs, or rocks. 18. Signs that are dilapidated, abandoned, in disrepair or in a dangerous condition. Section 18.80.130 General Provisions This section describes the provisions applicable to all signs regulated by this chapter. Certain types of signs may also be subject to additional provisions. A. Sign Area Measurement Procedures. Sign area shall be computed by including the entire area within a single, continuous, rectilinear perimeter of not more than eight (8) straight lines, or a circle or an ellipse, enclosing the extreme limits of the writing, representation, emblem, or other display, together with any material or color forming an integral part of the background of the display or used to differentiate the sign from the backdrop or structure against which it is placed, but not including any supporting framework or bracing that is clearly incidental to the display itself. Backing plates shall count as part of the sign area unless they are transparent. In the case of two-sided, multi-sided, or three-dimensional signs, the area shall be computed as including the maximum single display surface which is visible from any ground position at one time. 5.a Packet Pg. 73 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 25 of 48 B. Sign Height Measurement. Sign height shall be measured as the greatest vertical distance measured from the grade at the point the sign supports intersect the ground and any accompanying architectural features of the sign. However, if the sign is constructed upon an artificial berm, the height of the signs, as measured from the toe of slope or berm, shall not exceed one hundred twenty-five percent (125%) of the maximum height allowed by this chapter. C. Calculation. 1. For wall signs, the permitted area for any sign shall be calculated based only on the frontage or side of a building on which the sign is located. 2. When more than one business is located in a building, the allowable sign area for each business shall be based upon the length of the lineal building frontage occupied by that business. D. Construction Requirements. Every sign and all parts, portions, and materials thereof shall be manufactured, assembled, and erected in compliance with all applicable state, federal, and city laws and regulations, including the locally adopted building code. All signs shall comply with the following criteria: 1. All transformers, equipment, programmers, and other related items shall be screened and/or painted to match the building or shall be concealed within the sign. 2. All permanent signs shall be constructed of quality, low-maintenance materials such as metal, concrete, natural stone, glass, and acrylics. Techniques shall be incorporated during construction to reduce fading and damage caused by exposure to sunlight or degradation due to other elements. The application of graffiti resistant coating is recommended. 3. All freestanding signs that incorporate lighting shall have underground utility service. 4. All temporary signs and banners shall be made of a material designed to maintain an attractive appearance for as long as the sign is displayed. Where constructed on an artificial berm, the maximum height cannot exceed 125% of the allowing sign height. 5.a Packet Pg. 74 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 26 of 48 E. Clearance from Public Utility Facilities. The person erecting a sign, and the owner of the premises, shall maintain any legally required clearance from communications and electric facilities. A sign may not be constructed, erected, installed, maintained, or repaired in any manner that conflicts withany rule, regulation, or order of the California Public Utilities Commission pertaining to the construction, operation, and maintenance of public utilities facilities. F. Interference with Motorist Field of Vision. 1. No sign shall be located in a manner which may obstruct or interfere with the view of a traffic signal or other traffic regulatory signs. 2. No sign shall, as determined by the city engineer, be located so as to create a hazard to the life or property of any person using the public right-of-way. 3. Any required landscaping may be trimmed as needed to provide maximum visibility of the sign or signs. 4. Signs shall not be located within the clear sight triangle. G. Obstruction of Passage. 1. No sign shall be constructed so as to obstruct any required exit, including windows, doors, fire escapes or other emergency exit of any building. 2. No sign shall be constructed or located so as to obstruct any sidewalk. H. Sign Siting. 1. Location of Signs Attached to Buildings. Building signs may be located along any frontage of a building that faces directly onto a public right-of-way or an internal parking area of the site. Where the building is within 100 feet of a residential use, signs shall not be illuminated. 2. Setback and Spacing of Freestanding Signs. a. Where a setback exists, the minimum setback distance for freestanding signs shall be measured from the back of the public right-of-way or side of a driveway. b. The minimum spacing distance between permanent freestanding signs, excluding on-site directory signs, shall be 50 feet. The director will review a proposed sign location on a case-by-case basis to ensure the sign is located outside the required clear sight triangle and does not otherwise inhibit motorist safety I. Maintenance Requirements. Every sign, and all parts, portions, and materials thereof shall be maintained and kept in proper repair. The display surface of all signs shall be kept clean, neatly painted, and free from rust and corrosion. Any cracked, broken surfaces, malfunctioning lights, missing sign copy, or other poorly 5.a Packet Pg. 75 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 27 of 48 maintained or damaged portions of a sign shall be repaired or replaced within 30 days following notification by the city. J. Sign Removal or Replacement. When a sign is removed or replaced, all brackets, poles, and other structural elements that support the sign shall also be removed. Affected building surfaces shall be restored to match the adjacent portion of the structure. This requirement does not apply to routine maintenance. K. Electronic Signs. The city finds and declares that a proliferation of electronic display signs throughout the city, and especially located on arterial streets pose a danger to the motoring public because of potential distraction from their change of message, scale, format, and other physical qualities that differentiate them from other sign types. Therefore, the City through this Sign Code limits electronic signs to be displayed only in specified areas of freeway corridors, where the impacts on driver safety are minimized. All electronic display signs existing in the city as of the effective date of this ordinance, unless specifically permitted by this Code, are declared legal nonconforming signs and may continue to operate in accordance with section 18.80.220 (Nonconforming and abandoned signs) 1. The limitation established by this section shall not apply to manually changeable copy signs or freeway signs. 2. Signs providing information on fuel price and grade and fueling stations, as well as signs displaying time and temperature information shall be exempt from this limitation on electronic display signs. Illumination levels shall conform to section 18.80.140(A)(3) of this chapter. Section 18.80.140 Design Standards. A. General Sign Development and Design Requirements. The following general design requirements shall apply to permanent on-site signs. 1. Design Compatibility with Building. Signs shall be compatible with the architectural style of the main building or buildings upon the site where the sign is located. Signs located on commercial sites, but in a predominantly residential area, shall consider compatibility with such residential area. 2. Quality of Workmanship and Materials. Signs shall be of a quality commensurate with professional design standards and shall be constructed of durable materials designed to withstand the elements. No permanent sign made out of paper, cardboard, cloth, plastic sheeting, or other non-durable materials shall be permitted. Lettering, logos and other sign content shall be professionally prepared and shall appear uniform and legible. 3. Sign Illumination. The artificial illumination of signs, either from an internal or external source, shall be designed so as not to cast stray light on surrounding rights-of-way and properties. The following requirements shall apply to all illuminated signs: 5.a Packet Pg. 76 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 28 of 48 a. External light sources shall be directed and shielded to limit direct illumination of an object other than the sign. b. The light from an illuminated sign shall not be of an intensity or brightness that will create glare or other negative impacts on residential properties in direct line of sight to the sign. c. Signs exceeding one (1) square foot in size shall not have blinking, flashing, or fluttering lights, or other illumination devices that have a changing light intensity, brightness, or color. d. Colored lights shall not be used at a location or in a manner so as to be confused or constructed as traffic control devices. e. Light sources shall utilize energy-efficient fixtures to the greatest extent possible and shall comply with Title 24 of the California Code of Regulations. The use of energy efficient lighting features, such as solar- powered or light-emitting diodes (LED), are encouraged. 4. Landscaping. Each monument, directory and/or freeway sign shall be located within a planted landscaped area which is of a shape and design that will provide a compatible setting and ground definition to the sign, incorporating the following ratio of landscape area to total sign area a. Monument sign, four square feet of landscaped area for each square foot of sign area (one side only); b. Directory sign, two square feet of landscaped area for each square foot of sign area (one side only) c. Freeway sign, One square foot of landscaped area for each square foot of sign area (one side only) B. Development and Design Standards for Specific Sign Types. In addition to the general sign design requirements in subsection 18.80.140.A above, the following requirements shall apply to the specific sign types: 1. Awning and Canopy Signs. Awning and canopy signs may be permitted only as an integral part of the awning or canopy to which they are attached or applied and shall be considered wall signs for signage area calculation purposes. The following requirements shall apply: a. Only permanent signs that are an integral part of the awning or architectural projection shall be allowed. Temporary signs shall not be placed on awnings. b. Awning signs shall only be allowed for first- and second-story occupancies. 5.a Packet Pg. 77 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 29 of 48 2. Freestanding and Directory Signs. Monument signs shall only be permitted as follows: a. Voids between the sign face and the sign structure are prohibited. The sign face shall utilize the full width of the sign structure or coverings that are architecturally consistent with the rest of the sign to fill any voids. b. Materials and design for freestanding signs shall be complementary to the materials and design of the buildings for the related development. For example, if the façade of the building is stucco with stone or stone veneer, a complementary freestanding sign would also include stucco and stone. Notwithstanding the foregoing, or any other provision of this Chapter, nothing in this Chapter shall require the alternation of a federally registered service mark. c. For freestanding signs in multi-tenant centers, the name of the center shall not be calculated in the maximum sign area. Rather, the name of the center shall have a separate maximum sign area of 8 square feet. All tenant signs shall have a minimum letter height of eight inches (8”). The maximum number of tenants is 4 tenants on each sign face for centers with less than 300 feet of street frontage, and 8 tenants for centers with 300 feet or greater of street frontage. The two sign faces of a monument sign are not required to be identical in terms of tenant identification. d. Freestanding signs shall be located outside of the clear sight triangle. 3. Freeway signs a. The maximum allowable number, sign face area and height of any freeway sign shall be pursuant to section 18.80.130 (Development Standards for Permanent On-site Signs). When such display area is used for commercial speech, the copy must qualify as onsite as to the shopping center or commercial complex. b. For a commercial complex of 150,000 square feet or more, the maximum number of signs, sign face area, height of signs, and design criteria shall be determined by the Planning Commission through a sign program. c. Freeway signs may identify a maximum of 8 tenants d. Freeway signs, including freeway electronic message signs, may only be permitted subject to the approval by the Planning Commission. Freeway signs will be permitted when they comply section 18.80.130 (Development Standards for Permanent On-site Signs) and the following findings can be made: (i) The proposed sign is located upon the property upon which the use identified is located; 5.a Packet Pg. 78 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 30 of 48 (ii) The elevation of the freeway in relation to the elevation of the abutting properties justifies the height requested, and is the minimum necessary. (iii) The number and spacing of freeway signs will not cause unnecessary confusion, clutter or other unsightliness in the general location. (iv) The use identified, as well as its type, size and intensity, justifies the size, design and location of the sign requested. (v) The needs of the traveling public for identification and directional information justifies the sign requested. e. Freeway signs may be electronic message signs and shall be permitted subject to the following requirements: (i) No electronic message sign shall be located closer than one thousand one thousand feet to another electronic message sign. (ii) Each display shall appear for a period of at least ten seconds. Displays shall not be animated, appear in incremental stages or move across the changeable copy sign face. The sign shall remain blank (no message or display) for at least one second between separate images. (iii) The sign shall display only noncommercial messages or onsite commercial messages, related to those establishments that are part of the complex or the merchandise or activities available on the parcels which are part of the commercial complex. The sign shall not be used as a billboard. (iv) Electronic message signs shall automatically adjust the brightness of illumination between night and day (v) Electronic message signs may not identify commercial uses or contain commercial message for uses not located on the same site as the sign. Otherwise, they are considered off-premises signs and are prohibited by this code. (vi) The sign shall be reviewed for traffic safety purposes by the City's Public Works Director as designated by the city manager and shall comply with any and all safety standards as prescribed by the State of California. Such reviews shall not consider message content. 4. Projecting Signs. Projecting signs shall be considered wall signs for the purposes of sign area calculations. Projecting signs shall only be permitted as follows: 5.a Packet Pg. 79 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 31 of 48 a. Location. Projecting signs shall be placed only on ground-floor façades, except for businesses located above the ground level with direct exterior pedestrian access. b. Angle of projection. Projecting signs shall either be located at right angles to the building front along the building façade or, when located on the corner of a building, at a 45-degree angle to the corner of the building. c. Height. The lowest point the sign shall be a minimum of 8 feet above grade. d. Projection. The sign may project a maximum of 4 feet from the building. e. Suspension. The sign shall be suspended with a clear space of no more than 12 inches between the sign and the building. f. Sign structure. Sign supports and brackets shall be compatible with the design and scale of the sign. g. Encroachment. Projecting signs shall not encroach into the public right- of-way or easements or be located above it, or into a designated emergency vehicle/fire access lane. h. Spacing. Projecting signs shall be spaced to maximize the visibility of signage. 5. Wall Signs. a. Wall signs shall be compatible with the predominant visual architectural elements of the building façade. b. Wall signs shall not project more than 12 inches from the building façade. c. Wall sign raceways shall be concealed from public view (e.g., within the building wall or otherwise integrated with the design of the sign and building) so as to not detract from the architectural character of the building. d. Letter types are limited to the following: (i) Channel letters (ii) Reverse channel letters (iii) Foam letters with a hard surface 5.a Packet Pg. 80 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 32 of 48 (iv) Sculpted cabinet or contour signs e. Signage containing multiple elements (e.g., logo and text) on one façade shall be designed so that the multiple elements are located and scaled in relationship to each other. 6. Neon Signs. Neon signs are only permitted as identified in section 18.80.150 (Window signs). 7. Window Signs. Window signs are ply permitted as identified in section 18.80.180 (Window signs). Section 18.80.150 Development standards for permanent on-site signs. The provisions in this section provide the development standards for on-site signs on private property. Regulations are listed based upon zoning district and sign type. A. Format and Organization of Standards. The signage standards listed below are summarized, where applicable, in table format for ease of use and organization. Concepts described in these tables are as follows: 1. Sign Area Allowance. Allowable sign area is either a set square footage per establishment or is based on a ratio of allowable sign area to building frontage (e.g., one square foot of sign per one lineal foot of building frontage, or 1 sqft:1 lf). Where a ratio is described, it applies to the maximum permissible sign area listed in this section. 2. Mixed-Use Zoning Districts. In mixed-use zoning districts, signage for residential uses shall be consistent with the standards for residential zoning districts (e.g., as if the development were in a residential zoning district). For nonresidential uses, signs shall be consistent with the standards for commercial and office zoning districts. B. All signs shall conform to applicable provisions of section 18.80.140 Design standards. 5.a Packet Pg. 81 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 33 of 48 Table 18.80.150-1 Sign Standards in Residential Zones Class Type Development Standards (2)(3) Maximum number Maximum area Maximum sign height Location Subdivision ID sign(1) Wall 2 per development 12 sqft 6 ft Perimeter wall Monument 24 sqft 5 ft from property line Multi-family < 12 units Wall 1 wall or monument sign per street frontage, 2 max 12 sqft Below roofline or 20 ft, whichever is less Building wall Monument 6 ft 5 ft from property line Multi-family > 13 units Wall 1 wall or monument sign per street frontage, 3 max 24 sqft Below roofline or 20 ft, whichever is less Building wall Monument 6 ft 5 ft from property line School or other Wall 1 per site 20 sqft Below roofline or 20 ft, whichever is less Building wall Monument 1 per site 24 sqft 6 ft 5 ft from property line Remarks: (1) Sign shall not be internally illuminated (2) Ongoing maintenance entity required (3) Subject to section 18.80.140 Design standards 5.a Packet Pg. 82 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 34 of 48 Table 18.80.150-2 Sign Standards in AP Zone District Class Type Development Standards(1) Maximum number Maximum area Maximum sign height Location Single Tenant Facilities Business Identification Wall 1 per street or parking lot frontage Max. 3 total signs 1 sqft:1 lf, max. 50 sqft. Below roofline or 20 ft, whichever is less Parapet, or canopy Monument 1 per street or frontage 24 sqft 6 ft.  5’ from property line  Min. 100’ street frontage Multi-Tenant Facilities Business Identification Wall 1 per street frontage 1 sqft:1ft, max. 40 sqft. Below roofline or 20 ft, whichever is less Not specified Monument 1 per street frontage 24 sqft. 6’ 5’ from property line Nameplate(2) 1 per tenant 4 sqft. 8’ Adjacent to tenant entrance Business Directory Wall or monument To be determined by the Director 15 sqft 6’ Outside of setbacks Remarks: (1) Subject to section 18.80.140 Design standards (2)Signs shall not be illuminated 5.a Packet Pg. 83 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 35 of 48 Table 18.80.150-3 Sign Standards in C2 and CM Zone Districts Class Type Development Standards(3) Maximum number Maximum area Maximum sign height Location Single Tenant Facilities Business Identification Wall or canopy  1 single faced per street frontage  Max 3 per business Max. 3 total signs 1 sqft:1 lf, max. 100 sqft. Below roofline or 20 ft, whichever is less Parapet or canopy Monument 1 per street or frontage 24 sqft (may be double- faced) 6’  5 ‘from property line  Min. 100’ street frontage Freeway(1) 1 per site 75 sqft (may be double- faced) 50’  5’ from property line  Multi-tenant Facilities Business Identification Monument 1 double faced per street frontage Max. 3 total signs (2)(3) 8’ 5’ from property line Freeway(1) 1 per commercial center 100 sqft3) 75’  5’ from property line  Wall or canopy 1 single face per street or parking lot frontage. Max. 2 per business 1 sqft:1 lf (75 sqft. max.) Below roofline or 20 ft, whichever is less Parapet or canopy. Business Directory Wall or monument To be determined by the Director 15 sqft 6’ Outside of setbacks Remarks: (1) Subject to Site and Architectural Review and Conditional Use Permit; shall only be permitted within 250 feet of the right of way of Interstate 215 (2) 24 sft. to 36 sf <300’ of street frontage; 24 sf. to 60 sq if >.300’ or greater of street frontage (3) Subject to section 18.80.140 Design standards 5.a Packet Pg. 84 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 36 of 48 Table 18.80.150-4 Sign Standards in MR and M2 Zones Class Type Development Standards(3) Maximum number Maximum area Maximum sign height Location Single Tenant Facilities Business Identification Wall or canopy  1 single faced per street frontage  Max 3 per business Max. 3 total signs 10% of building face, 100 sqft. max Below roofline or 20 ft, whichever is less Parapet or canopy Monument 1 per street frontage 24 sqft (may be double- faced) 6’  5 ‘from property line  Min. 100’ street frontage Freeway(1) 1 per site 75 sqft (may be double- faced) 50’  5’ from property line  Multi-tenant Facilities Business Identification Monument 1 double faced per street frontage Max. 3 total signs  24 sqft  32 sqft if 300’ or greater street frontage 6’  5 ‘from property line  Min. 150’ street frontage Freeway(1) 1 per commercial center 75 sqft(2) 75’  5’ from property line  Wall or canopy 1 single face per street or parking lot frontage. Max. 2 per business. 10% of building face, 150 sqft. max Below roofline or 20 ft, whichever is less Parapet or canopy. Business Directory Wall or monument To be determined by the Director 15 sqft 6’ Outside of setbacks Remarks: (1) Subject to Site and Architectural Review and Conditional Use Permit; shall only be permitted within 250 feet of the right of way of Interstate 215 (2) May only identify 2 tenants (3) Subject to section 18.80.140 Design standards 5.a Packet Pg. 85 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 37 of 48 Table 18.80.150-5 Sign Standards for Service Station Uses(1) Class Type Development Standards(2) Maximum number Maximum area Maximum sign height Location Identification and Pricing Wall  1 per street frontage  Max 2 Max. 3 total signs 10% of building face, 30 sqft max Below roofline or 20 ft, whichever is less 5‘ from property line Monument(3)  1 per street frontage  Max 2  24 sqft for identification  12 sfqftfor price sign 8’ 5’ from property line Special Service Fuel canopy or ground One for each island, 4 max. 2 sf  8’ if mounted, on pole of canopy  3’ if ground sign 5‘ from property line Special Advertisement Window or ground 2 per station. 6 sf 6’ 5‘ from property line Remarks: (1) Additional tenants shall comply with the multiple tenant provisions of the applicable zone district (2) Subject to section 18.80.140 Design standards (3) The identification and price signs shall be integrated into the design of the monument sign. C. Menu/Order Board Signs for Drive-In and Drive-Through Uses. In addition to the signage permitted in the zone district the use is located, each drive-in or drive- through use is permitted two (2) menu/order board signs per drive-through lane. The maximum height for a menu/order board sign shall be 8 (eight) feet and the maximum area allowed is 50 square feet. No alterations or additions (e.g., rider signs) along the exterior of the menu/order board sign are permitted. D. Directional Signs for Drive-In and Drive Through Uses. In addition to the signage permitted in the zone district the use is located, each drive-in or drive-through use is permitted directional signs, for the purpose of indicating the locations of ingress and egress points, parking locations, drive-through lanes, and other similar advisory information for the purpose of promoting traffic safety by directing vehicles off of streets and highways in a safe and orderly manner. Such signs contain the words "entrance," "enter," "exit," "in," "out" or other similar words or a 5.a Packet Pg. 86 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 38 of 48 sign containing arrows o characters indicating traffic direction and used either in conjunction with such words or separately. Directional signs shall be limited in number to four signs, or three signs per frontage for any business premises that has more than one frontage. The maximum dimensions for such signs shall not exceed two square feet in area per sign and three feet in height to the top of the sign. Section 18.80.160 Temporary on-site signs, residential. The following signs are permitted, without a permit from the City, in residential zones: A. Temporary non-commercial signs. On each residentially zoned parcel in the City, the owner or occupant, or other party with the permission of the owner and/or occupant may display temporary signage displaying any non-commercial message subject to the following rules: 1. Individual signs shall be no larger than six (6) square feet; 2. The total square footage of signage displayed under this section shall not exceed twelve (12) square feet. 3. If temporary signs posted under this section pertain to a specific event, they shall be taken down within 5 days after the event occurs. If they are not removed by this deadline, the City may remove the signs after giving twenty-four hours’ notice to the homeowner that the sign is displayed in violation of this subsection. B. Temporary signs displayed during one-time event. 1. The owner or occupant of a residential parcel may also display an additional temporary sign containing any commercial or non-commercial message for up to 72 hours during the occurrence of a one-time event held at the property. The sign must be removed within 24 hours after the one-time has concluded. The city may summarily remove a sign displayed in violation of this subsection. Section 18.80.170 Temporary on-site signs, non-residential zones. A. The following temporary on-site signs are permitted in all nonresidential zones subject to the following rules. 1. The business must have permanent wall or freestanding signage, except that new businesses may apply a for temporary sign while permanent sign permits are being processed. 2. Each business may display one temporary sign for not more than 120 days in any one calendar year, whether displayed consecutively or intermittently. If 5.a Packet Pg. 87 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 39 of 48 run intermittently, display shall be in 60 day intervals. A one-time 30 day extension may be granted. At the end of the calendar year any time remaining shall be forfeited. 3. Off-site temporary signs are prohibited, except as permitted in this chapter. 4. Temporary signs shall not be illuminated. 5. Signs shall not impede or obstruct pedestrian walkways or parking spaces; nor shall they obstruct clear sight triangles. 6. Signs shall be cleaned, updated and/or repaired, as necessary, to maintain an attractive appearance and to ensure safe operation of the sign. Unacceptable sign conditions include broken or missing sign faces, broken or missing letters, chipped or peeling paint, and missing or broken fasteners. Failure to respond to a written request from the city to perform maintenance work shall result in revocation of the sign's permit. 7. Temporary signs may not be affixed to utility poles, fences, trees, rocks, permanent signs, awnings or decorative elements of landscaping. 8. Temporary signs shall not be counted towards the total allowable sign area for a use. B. In addition, the following provisions apply to banners: 1. The maximum area of a banner shall not exceed 25 square feet. 2. Where a business occupies a building or tenant space that is located a minimum of one hundred (100) feet from the property line facing the public street, the maximum area of the banner shall not exceed 32 square feet. 3. Banners shall be attached to the wall of the building to which it relates and shall not extend above the roof or eave line. 4. Banners shall not be hung from poles, trees, awnings, eaves or similar structures. Banners shall be hung with permanent attachments, such as bolts or screws. Banners shall not be tied to a structure with rope, string, twine, or similar materials. C. In addition, the following apply to feather banners (flag signs): 1. The maximum area of a flag sign shall not exceed 25 square feet. 2. No portion of a flag shall extend closer than 3 feet to the property line. 3. The height of the flag shall not exceed 8 feet. 4. Flag signs shall maintain a 5 foot separation from other signs. 5. Feather banners shall be allowed for multiple family uses. 5.a Packet Pg. 88 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 40 of 48 D. In addition, the following shall apply to portable signs: 1. The maximum area of a portable sign shall not exceed 12 square feet. 2. No portion of a portable sign shall extend closer than 3 feet to the property line. 3. The height of the portable sign shall not exceed three 3 feet. 4. A 5 foot separation from any other sign shall be maintained. E. In addition, the following shall apply to human advertisement signs: 1. Signs held by hand or personally attended to when on private property and consistent with the following requirements: a. The maximum aggregate size of all signs held or personally attended by a single person is twelve (12) square feet. For purposes of this rule, apparel and other aspects of personal appearance do not count toward the maximum aggregate sign area. b. The maximum size of any one sign which is held or personally attended by two (2) or more persons is twenty-five (25) square feet, measured on one side only. c. The sign must have no more than two (2) display faces and may not be inflatable or air-activated. d. Persons displaying signs under this Section may not stand in any vehicular traffic lane, within clear sight triangles, or sidewalks, or anywhere on public property as per section 18.80.50 (D) above. Section 18.80.180 Window Signs A. Commercial and industrial zoning districts shall be permitted to display window signs, subject to the following regulations: 1. No permit is required for window signs. Provided that, any business that is found to have window signs not in conformance with this section may be required to obtain permits for all window signs for a period of 12 months following the violation to ensure compliance with the provisions of this section. 2. The business must have permanent wall or freestanding signage. 3. No time limit is placed on the display of window signs. 4. A window sign includes any interior sign within three feet of a window which is visible from the exterior of the business. 5.a Packet Pg. 89 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 41 of 48 5. Window area shall be computed by calculating each window pane or panel. The area shall be separate for each building face and for each window. A group of window panes or panels may be considered one window if they are adjoining on the building face and are less than 6 inches apart. 6. Window signs may cover no more than 25% of the total transparent window area of the business, as defined in subsection 6 of this section. 7. Window signs shall not be illuminated except for signs constructed of neon tube letters and/or symbols. In such instances, window signs may include up to two neon signs per business. 8. Signs shall be cleaned, updated and/or repaired as necessary to maintain an attractive appearance and to ensure safe operation of the sign. Unacceptable sign conditions include broken or missing sign faces, broken or missing letters, chipped or peeling paint, and missing or broken fasteners. Failure to respond to a written request from the city to perform maintenance work shall result in code compliance action. Section 18.80.190 Off-site signs. A. Purpose. The purpose of this section is to provide signage opportunities for those businesses that have limited opportunities for on-site signage due to their location or nature of business. B. Applicability. Permitted businesses with a physical location inside the City limits located over 1,000 feet from the Barton Road corridor, as measured from the right of way line, may construct off-site signs subject to an approved Conditional Use Permit. C. Off-Site Directional Signs. This section rescinds the Freestanding Residential Subdivision Directional Sign Program established by Resolution Nos. 80-20 and 82-10 adopted by the City Council. D. General Requirements 1. A conditional use permit shall be submitted that includes a sign location plan showing the site of each sign and that demonstrates compliance with this section shall be submitted to the Planning Department prior to the issuance of the Sign Permit. 2. Individual signs shall not be larger than nine (9) square feet, eight feet (8’) in height, and attached to a City-approved sign stand. 3. Up to four off-site signs may be permitted. 4. Signs shall be limited to no more than three (3) structures on the same side of the street and shall not be located within 100 feet of another freestanding sign structure, or within six hundred (600) feet of another off-site sign. 5.a Packet Pg. 90 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 42 of 48 5. Signs shall be located outside of clear sight triangles. 6. Signs shall not be placed on collector or local streets. 7. Signs may be constructed on improved or unimproved property along major and secondary highways, as designated in the General Plan. 8. Signs proposed on private property shall have the property owner’s written permission; signs proposed within the public right-of-way shall obtain an encroachment permit. 9. The licensee or holder of an encroachment permit shall indemnify and hold the City, and its officers and employees, harmless of all costs, claims and damages levied against them 10. Signs shall not obstruct the use of sidewalks, walkways, and bike lanes and shall not obstruct the visibility of motorists, pedestrians of traffic control signs. 11. Sign panels shall not be internally illuminated. 12. Sign structure installations shall include “break away” design features. 13. No signs, pennants, flags or other devices for visual attention or other appurtenances shall be placed on the directional signs. 14. The design of all off-site signs shall be consistent throughout the city. Sign lettering used for identification panels shall be uniform in style and size. 15. Damaged, torn, defaced or faded signs shall be removed or replaced within 24 hour notice. Failure to maintain signs shall result in revocation of permits to place off-site signs. Section 18.80.200 Temporary Use and Special Event Signs A. Temporary Use and Special Event Signs 1. The organizer, owner, operator, or authorized representative of an organization, company, association or other group, that holds or sponsors a one-time special event or temporary use within the City and does not have a fixed business location within the City may request permission to display temporary signage as permitted by this Section as part of the approval of a temporary use or special event permit. Temporary uses include but may not be limited to seasonal activities such as holiday tree sales, sales of pumpkins, parking lot sales, and small-scale arts and crafts sales. Special events include but are not limited to circuses, carnivals, festivals, outdoor concerts, bicycle races, marathons, car shows, and other activities similar in scope and nature. 2. Signs for temporary uses shall be limited to one per use and shall be located on-site. Signs for special events shall not exceed four per event and may be 5.a Packet Pg. 91 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 43 of 48 located on- or off-site, with proof of property owner permission. The sign area for each sign shall not shall not exceed twenty-four (24) square feet and the top of the sign shall not be placed higher than eight feet above grade. 3. Permitted sign types for special events include the following, provided they do not obstruct or interfere with pedestrian or vehicular traffic: a. Pennants and streamers; b. Balloons and inflatable signs; c. Beacons; d. Banners, including feather banners; e. Portable freestanding signs, such as A-frames. 4. Temporary signs permitted under this Section for organizers, owners, operators, or authorized representatives of an organization company, association or other group holding or sponsoring a special event, may be displayed no more than thirty (30) days prior to the special event and shall be taken down no later than five (5) days after the event. Temporary signs permitted under this section for organizers, owners, operators, or authorized representatives of an organization, company, association or other group for temporary uses may be displayed only during the duration of the temporary use. Section 18.80.210 Parking of advertising vehicles. A. Definitions. For purposes of this section, the following words or phrases shall have the following meanings: 1. Convey. To drive, carry, pull, or otherwise transport. 2. Mobile billboard advertising display. An advertising display that is attached to a vehicle or any other mobile, non-motorized device, conveyance, or bicycle that carries, pulls, or transports a sign or billboard and is for the primary purpose of advertising. B. No person shall park or convey any mobile billboard advertising display as defined herein, either standing alone or attached to a motor vehicle, upon any public street or public lands in the City of Grand Terrace. C. Removal of Mobile Billboard Advertising Displays Authorized. Pursuant to Section 22651 (v) and (w) of the California Vehicle Code, a peace officer, or any regularly employed and salaried employee of the City, who is authorized to engage and is engaged in directing traffic or enforcing parking laws and regulations, may remove, or cause to be removed, the mobile billboard advertising display, or anything that the mobile billboard display is attached to, including a motor vehicle, located within the territorial limits of the City when the mobile advertising display is found upon 5.a Packet Pg. 92 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 44 of 48 any public street or any public lands, if all of the following requirements are satisfied: 1. When a mobile billboard advertising display either standing alone or attached to a motor vehicle, is parked or left standing in violation of this Code, and the registered owner of the vehicle or display was previously issued a warning notice or citation for the same offense; 2. A warning notice or citation was issued to a first-time offender at least 24 hours prior to the removal of the vehicle or display. The City is not required pursuant to Section 22651(v)(2) and Section 22651(w)(2) of the California Vehicle Code to provide further notice for a subsequent violation prior to enforcement; and 3. The warning notice or citation advised the registered owner of the vehicle or display that he or she may be subject to penalties upon a subsequent violation of the ordinance that may include removal of the vehicle or display. D. Permanent Advertising Signs Excepted. Pursuant to Section 21100(p)(2) and (p)(3) of the California Vehicle Code, this section does not apply to advertising signs that are permanently affixed in a manner that is painted directly upon the body of a motor vehicle, applied as a decal on the body of a motor vehicle, or placed in a location on the body of a motor vehicle that was specifically designed by a vehicle manufacturer for the express purpose of containing an advertising sign, such that they are an integral part of, or fixture of a motor vehicle for permanent decoration, identification, or display and that do not extend beyond the overall length, width, or height of the vehicle. E. Post Storage Impound Hearing. Section 22852 of the California Vehicle Code applies to this Section with respect to the removal of any mobile billboard advertising display vehicle. Section 22852 is incorporated by reference as if set forth in full herein and provides, in summary, that whenever an authorized employee of the City directs the storage of a vehicle, the City shall direct the storage operator to provide the vehicle’s registered and legal owner(s) of record, or their agent(s), with the opportunity for a post-storage hearing to determine the validity of the storage. Notice of the storage shall be mailed or personally delivered to the registered and legal owner(s) within 48 hours, excluding weekends, as specifically provided for under Section 22852 of the California Vehicle Code. To receive a post-storage hearing, the owner(s) of record, or their agent(s), must request a hearing in person, in writing, or by telephone within ten days of the date appearing on the notice. The City may authorize its own officer or employee to conduct the hearing as long as the hearing officer is not the same person who directed the storage of the vehicle. F. Violation – Penalties. After the initial warning citation, a subsequent violation of this Section is a misdemeanor, punishable upon conviction by a fine of not less than Two Hundred Fifty Dollars ($250), nor more than One Thousand Dollars ($1,000), or by imprisonment in the county jail for not more than six months, or by both fine 5.a Packet Pg. 93 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 45 of 48 and imprisonment. At the discretion of any person duly authorized by the Chief of Police to issue a citation for any violation of this section, or the Grand Terrace City Attorney’s Office, a violation of this section may be an infraction enforced through the parking penalty process set forth in Section 40200 et seq. of the California Vehicle Code. The city council may establish from time to time by resolution an increase in the amount of the fine. Section 18.80.220 Nonconforming Signs and Abandoned Signs A. Nonconforming Signs. 1. Except as otherwise provided by this section, all existing signs which do not meet the requirements of this chapter shall be deemed nonconforming signs and shall either be removed or brought into compliance with this chapter when a substantial alteration to the sign is made. Change of copy shall not be deemed a substantial alteration. 2. For purposes of this section, a “substantial alteration” shall be defined as repair or refurbishing of any sign that alters its physical dimensions or height, or replaces any integral component of the sign including, but not limited to, alterations to exterior cabinets, bases, or poles. In addition, substantial alteration shall also include any repair or refurbishing of a sign that exceeds 50% of the depreciated value of the sign and structure, but excepting customary maintenance. 3. “Customary maintenance” shall be defined as any activity or work performed for the purpose of actively maintaining the sign in its existing approved physical configuration and size dimensions at the specific location approved by the City and includes the following: a. Repainting the sign text, cabinet, or other component of the sign without changing the advertising message; or b. Routine replacement of border and trim with substantially the same colors and materials. 4. A nonconforming sign may remain in use provided no additions or enlargements are made thereto and no structural alterations are made therein, except as permitted for customary maintenance in subsection 18.80.100.I (Maintenance Requirements) of this chapter. B. Abandoned Signs. Abandoned signs may be abated by the city. For regulatory purposes, any factors indicating abandonment shall not begin occurring until 120 days after the effective date of this ordinance. Section 18.80.230 Compliance with Sign Code as Condition of Permit Approval Any existing legal nonconforming sign may be required to be brought into compliance with current applicable code requirements, or removed as a condition of approval of any 5.a Packet Pg. 94 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 46 of 48 redevelopment, building, conditional use, or other permit or approval required under any provision of the Grand Terrace Municipal Code for the same property where the nonconforming sign is located, so long as a nexus exists between the permit or approval and the sign that must be removed or brought into compliance. Section 18.80.240 Penalty Any violation of or failure to comply with the provisions of this chapter may be enforced pursuant to Chapter 1.16 of the Grand Terrace Municipal Code and by another other procedure authorized by law.” SECTION 2.. Section 5.40.070 (Signs) of Chapter 5.40 (Garage Sales) of Title 10 is revised to read as follows: “Section 5.4.070 Signs A. Signage advertising garage sales are considered commercial signage permitted by section 18.80.160, subdivision (B) “Temporary signs displayed during one-time event” of this Code and shall comply with all the requirements. B. Signs may be not placed on public property or in the public right-of-way in violation of Section 18.18.050 of this Code.” SECTION 3. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA guidelines, and the City’s environmental procedures, and has been found to be exempt pursuant to Section 15061 (b)(3) (General Rule) of the CEQA Guidelines, in that the City Council hereby finds that it can be seen with certainty that there is no possibility that the passage of this Ordinance will have a significant effect on the environment. SECTION 4. Any provision of the Grand Terrace Municipal Code or appendices thereto that are inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to the extent necessary to effect the provisions of this Ordinance. SECTION 5. If any provision or clause of this ordinance or the application thereof to any person or circumstances is held to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other provisions or clauses or applications of this ordinance which can be implemented without the invalid provision, clause or application; and to this end, the provisions of this ordinance are declared to be severable. SECTION 6. First read at a regular meeting of the City Council held on the 26th day of April, 2016, and finally adopted and ordered posted at a regular meeting of said City Council on the ___ of _______, 2016. 5.a Packet Pg. 95 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 47 of 48 ATTEST: ____________________________ ______________________________ Pat Jacquez-Nares Darcy McNaboe City Clerk Mayor 5.a Packet Pg. 96 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) April 26, 2016 Page 48 of 48 I, Pat Jacquez-Nares, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Ordinance was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the ____ of _____, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ Pat Jacquez-Nares City Clerk Approved as to form: ___________________________________ Richard L. Adams, II City Attorney 5.a Packet Pg. 97 At t a c h m e n t : S i g n C o d e O r d i n a n c e 4 . 2 6 . 2 0 1 6 ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) Section 18.80.050. D. Exception: Temporary Off-site Commercial Signs. 1. The following temporary signs may be placed in the public right-of-way, subject to a sign permit: Signs for any business located in Grand Terrace that provides goods or services that meet one or more of the following criteria: (1) the business is of a transitory or temporary nature; (2) the business does not have a fixed place of business or the goods or services themselves cannot practically be viewed and/or sold out of one business location or any business location. 2. Before a business may place its signs in the public right-of-way pursuant to this Section, the director must make a finding, in accordance with the procedures in Section 18.73.040, that a particular type of business satisfies the criteria in Section 18.73.030(A). 3. Without a prior finding by the director, temporary signs for the following goods and services are deemed to satisfy the criteria for the exception in subsection (A), above: a. Real estate directional signs, directing to properties that are for sale or for rent. b. Yard sale directional signs, including garage sales and estate sales, directing where such sales are to occur. 4. Temporary signs in the public right-of-way are subject to all of the following limitations: a. Signs shall be temporary signs, and will not be permanently affixed to or in the public right-of-way, but may be anchored or weighed down to or in the public right-of-way to prevent them from falling or being blown into the street or sidewalk. b. 2 Temporary signs displayed under this section shall only be placed in landscaped parkways, and shall not be placed on the sidewalk or in the center street median. c. No signs shall be placed on utility poles, light or traffic light poles, traffic signs or traffic sign poles, street trees or fences. d. No more than seven (7) signs per business may be temporarily placed in the public right-of-way at any one time. 5.b Packet Pg. 98 At t a c h m e n t : T e m p o r a r y o f f - s i t e c o m m e r c i a l S i g n s s e c t i o n ( 0 5 0 2 1 6 ) ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) e. A distance of five hundred (500) feet or more is required between individual signs on the same street. This limitation does not apply to signs that pertain to different properties. f. The sign area shall be no larger four (4) square feet. g. 8. All signs shall not exceed 3’ (three feet) in height, measured from the highest street grade in contact with the sign to the top of the sign. h. 9. No signs shall be placed so as to obstruct pedestrians’ and motorists’ view of signs erected by a local, state, or federal governmental agency, including but not limited to traffic signs, public directional signs, parking signs, and street address signs. i. 10. No signs shall be placed so as to obstruct or hinder sidewalk or street access by pedestrians and vehicles. j. 11. No signs shall be placed so as to obstruct ingress and egress to any public or private property. k. 12. Temporary signs displayed under this section shall only be placed on the public right-of-way Thursday through during the hours of 8:00 a.m. to 5:00 p.m. l. 13. Temporary signs in the public right-of-way shall not be illuminated, either internally or externally, shall not have flashing lights, shall not have any moving parts or be caused to be moved, and shall not generate any source sounds (including radio waves), and shall not release steam or smoke. m. 14. Any other reasonable restrictions, or modifications to the above restrictions, which the director finds are necessary to further the purposes of this Code, consistent with the type of sign or business. E. Exception and Appeal. 1. The director must make the determination of whether a business falls within the exception in Section 18.80.050.D within five (5) business days of receipt of a written request by the sign’s owner for such determination. The director shall notify the applicant of his or her decision forthwith by U.S. Mail. 2. In the event that the director denies the request, or fails to make a determination within the time prescribed, the applicant may appeal the director’s decision in writing to the city manager, who shall review all relevant evidence relating to the appeal. The city manager shall make a determination within five (5) business days of receipt of the appeal. The city manager shall notify the applicant of the determination forthwith by U.S. Mail. 5.b Packet Pg. 99 At t a c h m e n t : T e m p o r a r y o f f - s i t e c o m m e r c i a l S i g n s s e c t i o n ( 0 5 0 2 1 6 ) ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) 3. In the event that the city manager denies the request, or fails to make a determination within the time prescribed, the applicant may appeal the city manager’s decision in accordance with Section 18.80.090 Appeals. 5.b Packet Pg. 100 At t a c h m e n t : T e m p o r a r y o f f - s i t e c o m m e r c i a l S i g n s s e c t i o n ( 0 5 0 2 1 6 ) ( 1 9 1 4 : S i g n C o d e O r d i n a n c e - S e c o n d R e a d i n g ) This page left intentionally blank. AGENDA REPORT MEETING DATE: May 24, 2016 Council & Successor Agency Item TITLE: Annual Financial Report for the Year Ended June 30, 2015 PRESENTED BY: Cynthia Fortune, Finance Director RECOMMENDATION: Receive and file the Annual Financial Report and related documents for the year ended June 30, 2015. 2030 VISION STATEMENT: This staff report supports City Council Goal #1, “Ensuring Our Fiscal Viability” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations. BACKGROUND: Each year, the City has an independent audit conducted of its financial statements and related internal control procedures. The audit for the fiscal year ended June 30, 2015 has been completed and the Annual Financial Report issued by the City’s auditor, Lance, Soll & Lunghard, LLP. DISCUSSION: One of the key aspects of any annual financial audit is the Independent Auditor’s Report, which is provided on page 1 of the Annual Audit Report (Exhibit A). The Independent Auditor’s Report provides its opinion on whether or not the financial statements fairly present, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information as of the end of the fiscal year, and the respective changes in financial position and cash flows, where applicable, in conformance with Generally Accepted Accounting Principles (GAAP). The resulting “opinion letter” is either unqualified or qualified. The “opinion letter” received by the City for its financial statements for the period ended June 30, 2015 is unqualified, indicating that the financial statements fairly represent the City’s financial position in accordance with GAAP. In addition to the Annual Financial Report, the independent auditor issues other related documents, which are summarized below: Audit Overview Letter (Exhibit B) Discusses the auditor’s responsibilities under Government Auditing Standards 6 Packet Pg. 101 and any significant issues encountered during the audit that warrant disclosure. None of the misstatements detected as a result of the audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Internal Control & Compliance Report (Exhibit C) The Internal Control & Compliance Report identifies any material internal control deficiencies that impact the financial statements. The results of the tests performed by the City auditors resulted in one incorrectly recorded revenue. The City received a Special Revenue grant from the State of California to build the Grand Terrace Fitness Park. Grant reimbursement and request for payments practices occur when the City expends the necessary funds up front to build the park, then request reimbursement for the expenditures incurred. Past practice has been that after the City submits a request for grant reimbursement, the expected receipts are recorded as “Grant Revenue.” In FY2014-15, the Government Accounting Standards Board (GASB) implemented GASB #63. GASB #63 states that two (2) new elements be added to the Statement of Net Position in a government agency’s financial statements: deferred outflows and deferred inflows. A “deferred outflow” is a future expenditure and a “deferred inflow” is a future revenue. The receipts mentioned above should be been recorded as a “deferred inflow.” The City has since corrected this recordation. In order to avoid a similar incident, the City will include a review of all prior year grant receivable accruals for any unavailable revenues not actually received during the City’s revenue recognition period within 60 days of the fiscal year’s end and adjust its recordation accordingly. FISCAL IMPACT: There is no fiscal impact associated with the receipt of the Annual Financial Report and related documents for the year ended June 30, 2015. ATTACHMENTS:  Exhibit a - Annual Financial Report Ending June 30, 2015 (PDF)  Exhibit B - Audit Overview Letter (PDF)  Exhibit C - Internal Control & Compliance Report (PDF) APPROVALS: Cynthia Fortune Completed 05/19/2016 1:52 PM Finance Completed 05/19/2016 4:37 PM 6 Packet Pg. 102 City Attorney Completed 05/19/2016 5:03 PM City Manager Completed 05/19/2016 3:43 PM City Council Pending 05/24/2016 6:00 PM 6 Packet Pg. 103 This page left intentionally blank. CITY OF GRAND TERRACE, CALIFORNIA ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 6.a Packet Pg. 104 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE, CALIFORNIA ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 6.a Packet Pg. 105 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) THIS PAGE INTENTIONALLY LEFT BLANK 6.a Packet Pg. 106 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS Page Number INDEPENDENT AUDITORS’ REPORT .............................................................................................. 1 MANAGEMENT'S DISCUSSION AND ANALYSIS ............................................................................ 5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position .................................................................................................... 19 Statement of Activities .......................................................................................................... 20 Fund Financial Statements: Balance Sheet - Governmental Funds ................................................................................. 22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .......................................................................................... 25 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ......................................................................................... 26 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................................................................................................... 29 Statement of Net Position - Proprietary Funds .................................................................... 30 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds .......................................................................................... 31 Statement of Cash Flows - Proprietary Funds ..................................................................... 32 Statement of Fiduciary Net Position - Fiduciary Funds ........................................................ 33 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ................................... 34 Notes to Financial Statements ................................................................................................... 35 6.a Packet Pg. 107 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS Page Number REQUIRED SUPPLEMENTARY INFORMATION Miscellaneous Cost-Sharing Pension Plans: Proportionate Share of the Net Pension Liability — Miscellaneous Cost-Sharing Plan ............... 66 Schedule of Plan Contributions — Miscellaneous Cost-Sharing Plan .......................................... 67 Budgetary Comparison Information: General Fund ........................................................................................................................... 68 Street Improvement Fund ........................................................................................................ 69 Housing Authority ..................................................................................................................... 70 Child Care Center Fund ........................................................................................................... 71 Notes to Required Supplementary Information .............................................................................. 73 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Nonmajor Governmental Funds ........................................................ 74 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ....................................................... 78 Budgetary Comparison Information – Special Revenue Funds: Storm Drain Improvement ........................................................................................................ 82 Park Development .................................................................................................................... 83 AB 3229 COPS ........................................................................................................................ 84 Air Quality Improvement ........................................................................................................... 85 State Gas Tax .......................................................................................................................... 86 Traffic Safety ............................................................................................................................ 87 Facilities Development ............................................................................................................. 88 Measure I ................................................................................................................................. 89 CDBG ....................................................................................................................................... 90 Terrace Pines Landscape and Lighting District ....................................................................... 91 Budgetary Comparison Information – Capital Project Funds: Street Improvement .................................................................................................................. 92 Combining Statement of Assets and Liabilities All Agency Funds ..................................................................................................................... 93 Combining Statement of Changes in Assets and Liabilities – All Agency Funds ............................................................................... 94 6.a Packet Pg. 108 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council City of Grand Terrace, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Grand Terrace, California, (the City) as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022 An Association of Independent Accounting Firms 6.a Packet Pg. 109 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) To the Honorable Mayor and Members of the City Council City of Grand Terrace, California Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Grand Terrace, California, as of June 30, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As discussed in Note 1 to the financial statements, in 2015 the City adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions – An Amendment of GASB Statement No. 27 as amended by GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules for the General Fund, the Street Improvement, the Housing Authority and the Child Care Center special revenue funds, the schedule of proportionate share of the net pension liability and the schedule of plan contributions be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. 2 6.a Packet Pg. 110 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) To the Honorable Mayor and Members of the City Council City of Grand Terrace, California Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 12, 2016 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Brea California April 12, 2016 3 6.a Packet Pg. 111 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) THIS PAGE INTENTIONALLY LEFT BLANK 4 6.a Packet Pg. 112 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) Management's Discussion and Analysis The following discussion and analysis of the financial performance of the City of Grand Terrace provides an overview of the City's financial activities for the fiscal year ended June 30, 2015. The information presented herein should be considered in conjunction with the City’s financial statements identified in the accompanying table of contents. Financial Highlights The assets and deferred outflows of the City of Grand Terrace exceeded its liabilities and deferred inflows at June 30, 2015 by $19 million (net position). The City’s net position decreased by $4.6 million from the previous fiscal year from $23.6 million to $19 million. In the Current year, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions – An amendment of GASB Statement No. 27. As a result, the unfunded net pension liability of $3.2 million is recorded on the City’s Statement of Net Position. As of June 30, 2015, the City of Grand Terrace’s governmental funds had reported combined ending fund balances of $7.2 million, an increase of $0.9 million. Of this total, approximately $5.2 million, or 73.0% of the total fund balance, are either non-spendable or restricted due to the nature of the restriction. The total debt of the City showed a net increase of $3.6 million. The City’s net pension liability which increased by $3.2 million mainly contributed to this increase. The City’s Other Post-Employment Benefits (OPEB) Liability and California Joint Powers Insurance Authority (CJPIA) Retrospective Liability increased by $0.27 million, and $0.29 million respectively. The City’s Capital Lease obligation with Zion’s bank and the Compensated Absences Liability of the City decreased by $0.19 million and $0.02 million respectively. The General Fund had a year-end fund balance of $2.4 million. This was an increase of $0.48 million and an increase of 24.6% over Fiscal Year (FY) 2013- 14. Using the Accompanying Financial Statements Included in the accompanying report are fund financial statements. For governmental activities, the fund financial statements explain how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City's operations in more detail than the government-wide statements by providing information about the City's most significant funds. Overview of the Financial Statements The annual report consists of four parts - management's discussion and analysis (this section), the basic financial statements, required supplementary information and an optional section that presents combining statements for nonmajor governmental funds. The basic financial statements include two kinds of statements that present different views of the City: The first two statements are government-wide financial statements that provide both long-term and short-term information about the City's overall financial status. x The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City's operations in more detail than the government- 5 6.a Packet Pg. 113 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) wide statements. The governmental funds statements explain how general government services like public safety were financed in the short term as well as what remains for future spending. x Proprietary fund statements offer short and long-term financial information about the activities the government operates like a business. x Fiduciary fund statements provide information about the fiduciary relationships - like the agency funds of the City - in which the City acts solely as agent or trustee for the benefit of others, to whom the resources in question belong. The financial statements also include notes that provide additional explanatory information regarding the financial statements, as well as more detailed data. The statements are followed by a section of required supplementary spreadsheets that provide additional financial and budgetary information. Reporting the City as a Whole The accompanying government-wide financial statements include two statements that present financial data for the City as a whole. The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities. The statement of net position includes all of the City’s assets and liabilities, as well as any deferred outflows and inflows. The statement of activities includes all current year revenues and expenses regardless of when cash is received. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. These two statements report the City's net position and changes in net position that transpired during the fiscal year. The City's net position - the difference between assets, deferred outflows and inflows, and liabilities - are one way to measure the City's financial health, or financial position. Over time, increases and decreases in the City's net position are one indicator of whether its financial health is improving or deteriorating. Other nonfinancial factors, however, should also be considered such as changes in the City's property tax or sales tax base and the condition of the City's roads, to assess the overall health of the City. The Statement of Net Position and the Statement of Activities are divided into two types of activities: Governmental activities - Most of the City's basic services such as public safety, public works, community development, and general government are reported here. Sales taxes, property taxes, state subventions, and other revenues finance most of these activities. Business-type activity - The City charges fees for services to customers and all related costs of services are accounted for in this fund. Reporting the City's Most Significant Funds The fund financial statements provide detailed information about the City's most significant funds - not the City as a whole. Some funds are required to be established by State law or by bond covenants. However, the City establishes many other funds to help it control and manage financial resources for particular purposes or to demonstrate that it is meeting oversight responsibilities for using certain taxes, grants, or other money. The City's two types of funds - governmental and proprietary - use different accounting approaches. 6 6.a Packet Pg. 114 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) Governmental funds - Most of the City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances remaining at year end that are available for spending. These funds are reported using the modified accrual accounting method, which measures cash and all other current financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps to determine whether there are greater or fewer financial resources that can be spent in the near future to finance the City's programs. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Proprietary funds - When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City's enterprise fund is the same as the business-type activities reported in the government-wide statements, but provides more detail and additional information, such as cash flows, for the proprietary fund. The City does not use internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City's other programs and activities. Reporting the City's Fiduciary Responsibilities The City is an agent for certain assets held for, and under the control of, other organizations and individuals. These activities are excluded from the City's other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. Government-wide Financial Statements As noted earlier, net position may serve over time as a useful indicator of a government's financial position. At June 30, 2015, net position for the City of Grand Terrace was $18,960,475; compared to net position of $23,596,234 at June 30, 2014. 7 6.a Packet Pg. 115 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) A summary of the government-wide Statement of Net Position at June 30, 2015 and June 30, 2014 are as follows: Table 1 Net Position Governmental Activities Business-type Activities Total 2015 2014 2015 2014 2015 2014 Current and other assets $ 8,914,719 $ 7,933,432 $ 1,836,691 $ 2,629,192 $ 10,751,410 $10,562,624 Capital assets, net 11,797,327 12,345,148 4,973,978 5,062,548 16,771,305 17,407,696 Total assets 20,712,046 20,278,580 6,810,669 7,691,740 27,522,715 27,970,320 Deferred Outflows for Pension 195,702 - - - 195,702 - Other liabilities 1,372,090 1,226,028 418,683 505,350 1,790,773 1,731,378 Long-term liabilities 6,222,244 2,642,708 - - 6,222,244 2,642,708 Total liabilities 7,594,334 3,868,736 418,683 505,350 8,013,017 4,374,086 Deferred inflows for Pension 744,925 - - - 744,925 - Net investment in capital assets 10,576,784 10,934,661 4,973,978 5,062,548 15,550,762 15,997,209 Restricted 5,216,299 4,493,682 - - 5,216,299 4,493,682 Unrestricted (3,224,594) 981,501 1,418,008 2,123,842 (1,806,586) 3,105,343 Total net assets $ 12,568,489 $16,409,844 $ 6,391,986 $ 7,186,390 $ 18,960,475 $23,596,234 $15,550,762 (82.0%) of the net position reflects the City's investment in capital assets, less any related debt used to acquire those assets that are still outstanding. Since these assets are used to provide services to the citizens they are not available for future spending. An additional $5,216,299 (27.5%) represents resources that are subject to external restrictions on how they may be used. The unrestricted net position resulted in a negative amount of $1,806,586 (-9.5%) mainly due to the net pension liability of over $3.2 million that the City now has to account for as part of the City’s Statement of Net Position. 8 6.a Packet Pg. 116 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) A summary of the government-wide Statement of Activities for the year ended June 30, 2015 and 2014 are as follows: Table 2 Changes in Net Position GovernmentalActivitiesBusinessͲtypeActivitiesTotal 201520142015201420152014 Revenuesandtransfers Programrevenues: Chargesforservices 2,052,237 1,843,798 16,949 1,533,755 2,069,186 3,377,553 Operatingcontributions andgrants 326,483 418,608 Ͳ Ͳ 326,483 418,608 Capitalcontributions andgrants 336,881 29,447 Ͳ Ͳ 336,881 29,447 Generalrevenues: Propertytax 2,287,751 3,257,105 Ͳ Ͳ 2,287,751 3,257,105 Salestax 827,251 1,359,930 Ͳ Ͳ 827,251 1,359,930 Motorvehicleinlieu 5,212 Ͳ Ͳ Ͳ 5,212 Ͳ Othertaxes 523,078 504,125 Ͳ Ͳ 523,078 504,125 Salesofproperty 724,424 24,971 900 2,214 725,324 27,185 Otherrevenues 53,958 81,426 Ͳ Ͳ 53,958 81,426 Totalrevenues andtransfers7,137,275 7,519,410 17,849 1,535,969 7,155,124 9,055,379 Expenses Generalgovernment 1,684,252 1,315,202 Ͳ Ͳ 1,684,252 1,315,202 Publicsafety 1,888,371 1,824,976 Ͳ Ͳ 1,888,371 1,824,976 Publicworks 1,582,132 1,478,267 Ͳ Ͳ 1,582,132 1,478,267 Economicdevelopment 12,570 5,426 Ͳ Ͳ 12,570 5,426 Culturalandrecreation 2,046,098 1,847,658 Ͳ Ͳ 2,046,098 1,847,658 InterestonlongͲterm debt 64,905 70,455 Ͳ Ͳ 64,905 70,455 Wastewaterdisposal Ͳ Ͳ 1,306,013 1,579,513 1,306,013 1,579,513 TotalExpenses7,278,328 6,541,984 1,306,013 1,579,513 8,584,341 8,121,497 Extraordinaryitem Gainonassettransfers deniedbyDOF Ͳ 438,680 Ͳ Ͳ Ͳ 438,680 Changeinnetposition (141,053) 1,416,106 (1,288,164) (43,544) (1,429,217) 1,372,562 Beginningnetposition 16,409,844 15,110,429 7,186,390 7,229,934 23,596,234 22,340,363 RestatementofNetPosition (3,700,302) (116,691) 493,760 Ͳ (3,206,542) (116,691) Endingnetposition$12,568,489 $16,409,844 $6,391,986 $7,186,390 $18,960,475 $23,596,234 The increase or decrease in net position can provide an indication as to whether the overall financial position of the City improved or worsened during the year. The total net position for the City decreased by $4,635,759 or 19.6% during the fiscal year. This decrease is mainly due to the net pension liability of $3.2 million that was recorded during FY 2014-15 as a result of the implementation of GASB 68. Taken separately, the net position of governmental activities decreased by $3,841,355 while the net position of business-type activities decreased by $794,404. Total expenses of $8,584,341 were offset by total revenues of $7,155,124. In the Statement of Activities, expenditures do not include the cost of assets capitalized during the year or payments made on principal of outstanding debt. Depreciation is shown for governmental funds on this table, but the expense is not recorded in each individual fund. 9 6.a Packet Pg. 117 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) After the deduction of capitalized assets, the next largest component in changes to net position is the actual increase or decrease in fund balances resulting from operations. For governmental funds there was a net increase of $1,069,738. Of this amount, a net increase of $500,206 is attributable to the nonmajor funds, a net decrease of $1,298 to Capital Projects, a net decrease of $149,451 to the Child Care Center, a net increase of $15,304 to the Housing Authority, a net increase of $227,726 to the Street Improvement Fund, with the difference being a net increase to the General Fund of $477,251. Interest on long-term debt expenses decreased by $5,550 or 7.9 percent compared to the prior year. The $70,455 in long- term debt interest charged to the General Fund during FY 2014- 15 was for the Zion Bank Capital lease. Governmental Activities The following table shows the cost of each of the City’s major programs and their net cost after subtracting fees and other direct revenue generated by the activities. The net cost reflects the financial burden that was placed on the City taxpayers by each of the programs. Net Cost of Governmental Activities 2015 2014 Total Cost of Services Net Cost of Services Total Cost of Services Net Cost of Services General government $ 1,684,252 $ 1,371,504 $ 1,315,202 $ 1,158,744 Public safety 1,888,371 1,666,587 1,824,976 1,497,644 Public works 1,582,132 531,957 1,478,267 956,413 Economic development 12,570 12,570 5,426 5,426 Cultural and recreation 2,046,098 915,204 1,847,658 561,449 Interest on long-term debt 64,905 64,905 70,455 70,455 Total $ 7,278,328 $ 4,562,727 $ 6,541,984 $ 4,250,131 This table shows the cost of all governmental activities this year was $7,278,328. General tax dollars paid for approximately 60 percent of this cost. Fees, grants and contributions funded the balance of the cost of governmental activities. 10 6.a Packet Pg. 118 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) Revenues by Source - Governmental Activities $7,137,275 Expenses by Function - Governmental Activities - $7,278,328 11 6.a Packet Pg. 119 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) Business-Type Activity In March 2014, the cities of Grand Terrace and Colton entered into settlement for sewer services and lease agreements for fifty (50) years. These agreements settled all related litigation between Grand Terrace and Colton and extricated Grand Terrace from the waste water collection business. The huge drop in operating revenues during FY 2014-15 resulted because effective July 1, 2014, the City of Colton took over the responsibility of providing wastewater collection, operation, distribution and maintenance activities on behalf of Grand Terrace users. Operating expenses compared to the previous fiscal year decreased by $273,500 (or 17.3 percent), from $1,579,513 in FY 2013-14 to $1,306,013 in FY 2014-15. Included in the $1.3 million total expenditures during FY 2014-15 is the $1.2 million paid by the City of Grand Terrace to the City of Colton in accordance with the agreed upon settlement agreement between the two cities. Expenses and Program Revenues – Business-type Activities Major Funds As noted earlier, the City uses fund accounting to provide proper financial management of the City's resources and to demonstrate compliance with finance-related legal requirements. Major Governmental Funds: The General Fund is the main operating fund of the City. At the end of the current fiscal year, the fund balance of the General Fund increased $477,251 to $2,414,215 from a fund balance of $1,936,964 at June 30, 2014. Total fund balance in all Governmental Funds was $7,158,843. General Fund Revenues and Expenditures amounted to: Increase (Decrease) in 2014-15 2013-14 Fund Balance Revenues $ 4,882,912 $ 5,286,772 $ (403,860) Expenditures (4,314,734) (4,761,050) 446,316 Other Sources (Uses) (90,927) (82,539) (8,388) Net Change in Fund Balance 477,251 443,183 34,068 Beginning Fund Balance 1,936,964 1,493,781 443,183 Ending Fund Balance $ 2,414,215 $ 1,936,964 $ 477,251 0 300,000 600,000 900,000 1,200,000 1,500,000 1,800,000 Waste Water Treatment Operating Expenses Operating Revenues 12 6.a Packet Pg. 120 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) The significant highlights in activities, revenues and expenditures of the City's General Fund from the prior year are as follows: x General Fund revenues and transfers in exceeded expenditures and transfers out by $477,251. Total fund revenues decreased by $403,860 or 7.6 percent from FY 2013-14. This decrease in total general fund revenues is attributable mainly to the decrease in property tax revenues amounting to $968,789 and the decrease in Sales tax of $133,546. The decrease in these two major General Fund revenues were partly offset by the $400,000 received by the City as one- time advance lease payment in consideration of the Sewer Services Agreement between the City of Colton, Colton Utility Authority and the City of Grand Terrace and the $300,000 also received by the City of Grand Terrace from the City of Colton and the Colton Utility Authority as annual lease payment for the FY 2014-15 in accordance with the signed Waste Water Lease Agreement between the parties involved. x Property taxes received decreased by 30 percent from $3,245,294 to $2,276,505, a difference of $968,789. This decrease in property tax is attributable to the decrease in the City’s share of excess revenue distribution as a result of the Community Redevelopment Agency (CRA) dissolution. The City’s residual receipts dropped from $1,169,419 in FY 2013-14 to $761,191 in FY 2014-15, a difference of $408,228. In addition, there was a one- time receipt of $616,484 during FY 2013-14 that was attributable to the accelerated loan repayment made by the General Fund to the Successor Agency which also contributed to said decrease in property tax. x Sales tax and Sales tax–in-lieu decreased by 13.7 percent from $958,648 to $827,251. x Charges for service, including licenses and permits in FY 2014-15 increased by 10.7% compared to FY 2013-14 from $825,471 to $913,508. Marked increases were shown for the following revenues – construction permits, public works permits and engineering plan/review. x Fines and forfeitures had a net decrease of $146,745 from $221,656 in FY 2013-14 to $74,911 in FY 2014-15. The loss of the following one-time revenue items received in FY 2013-14 contributed to the decrease in revenues in this category: Workers’ Compensation rebate on the Sheriff’s Contract of $112,054 and claims, judgments & settlements of $54,323. x The overall operating expenditures of the General Fund decreased by 9.4 percent over the prior year - from $4.8 million to $4.3 million. During FY 2013-14, an accelerated loan payment of $1.09 million was made by the General Fund to Successor Agency to repay previous loans made from the CRA to the City’s General Fund. (The repayment was made to the County Auditor-Controller for subsequent distribution to the various taxing entities.) The overall operating expenditures of the General Fund decreased in the current fiscal year partly because a similar major financial transaction such as the one mentioned above did not occur again in FY 2014-15. Also as a result of this, general government expenditures showed a decrease in expenditures amounting to $620,762. However, the following City program categories ended the year with higher expenditures incurred during FY 2014-15 compared to FY 2013-14: Public Safety, Public Works & Cultural & Recreation. x There were still cost savings in various areas attributed to the City’s ongoing cost reduction and control measures - including continuation of a 10 percent employee salary reduction implemented via work furlough, elimination and deferral of some employee benefits, deferral of merit increases, and reallocation of some employee salaries to other funds. 13 6.a Packet Pg. 121 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) x Of the total $4,314,734 in General fund operating expenditures, total general government expenditures represented 19.1% percent, Public works expenditures represented 22.3 percent and Public safety expenditures represented 41.0 percent. The other 17.6 percent represented expenditures relating to cultural & recreation and debt service payments. Other major governmental funds include the Street Improvement Fund, the Housing Authority Fund, the Child Care Center Fund, and the Capital Projects Fund. The Street Improvement Fund had a net change of $227,726 during the fiscal year. The fund balance of the Housing Authority Fund increased by $15,304 during FY 2014- 15. This fund accounts for the housing assets as a result of the dissolution of community redevelopment agency of the City. The Child Care Center Fund ended the fiscal year with a net change of ($149,451), while the Capital Projects Fund had a net change of ($1,298) at June 30, 2015. Nonmajor Funds The Nonmajor funds, as listed in the table of contents of this report, include Gas Tax, Measure I, the Capital Improvement Funds, and most of the special revenue funds. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the City. In these cases, the City has a fiduciary responsibility and is acting as trustee. The Statement of Fiduciary Net Position, included in the Basic Financial Statements, separately reports all of the City’s fiduciary activities. The City’s fiduciary activities are reported in separate statements of fiduciary net position and statement of changes in fiduciary net position (Private Purpose Trust Fund- Successor Agency of the Former RDA only). Fiduciary funds are not reflected in the government- wide financial statements because the resources of those funds are not available to support the City’s own programs. However, the City is responsible for ensuring that the assets reported in these funds are used for their intended purposes Capital Assets As of June 30, 2015, the City had invested $16,771,305, in a broad range of capital assets, including buildings, parks and park improvements, computer and maintenance equipment, vehicles, sewer collection systems, streets, sidewalks and storm drains. The City is exempt by provisions of Governmental Accounting Standards Board (GASB) Statement No. 34 from including the valuation of old City infrastructure prior to the implementation of GASB Statement No. 34. 14 6.a Packet Pg. 122 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) Capital Assets (Net of depreciation) Governmental Activities Business-type activities Total 2015 2014 2015 2014 2015 2014 Land $ 2,177,069 $ 2,177,069 $ - $ - $ 2,177,069 $ 2,177,069 Buildings 3,213,528 3,369,131 - - 3,213,528 3,369,131 Improvements 1,768,665 1,942,463 122,210 130,637 1,890,875 2,073,100 Equipment 146,463 178,152 - - 146,463 178,152 Vehicles 102,810 63,673 - - 102,810 63,673 Infrastructure 2,790,676 3,017,842 - - 2,790,676 3,017,842 Sewer mains - - 2,640,977 2,685,679 2,640,977 2,685,679 Sewer laterals - - 1,328,841 1,349,851 1,328,841 1,349,851 Sewer manholes - - 881,950 896,381 881,950 896,381 Construction in progress 1,598,116 1,596,818 - - 1,598,116 1,596,818 $11,797,327 $12,345,148 $4,973,978 $5,062,548 $16,771,305 $17,407,696 Long-Term Debt At the end of the current fiscal year, the City had debt outstanding of $6,222,244. Of this amount, $1,220,543 is owed to Zions National Bank for the Civic Center facility. The City adopted Governmental Accounting and Financial Reporting for Pensions during the year. As a result, the City recognized the unfunded net pension liability of $3,229,236. The remaining $1,772,465 is comprised of other debt such as OPEB obligations for retiree health benefits, CJPIA retrospective liability owed to the Authority and compensated absences payable. Of the total outstanding debt, $226,682 is due and payable within one year. Outstanding Debt Governmental Activities 2015 2014 Leases Payable- Zions Bank $ 1,220,543 $ 1,410,485 CJPIA Retrospective Liability 286,652 - OPEB obligation 1,396,947 1,125,477 Net Pension Liability 3,229,236 - Compensated Absences 88,866 106,746 Total Outstanding Debt $ 6,222,244 $ 2,642,708 The City's total debt increased by $3,579,536 during FY 2014- 2015. This 135% increase in the City’s total debt compared to the previous fiscal year is mainly attributable to the City’s adoption of the new GASB pronouncement involving its pension liability in the current year. 15 6.a Packet Pg. 123 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) Additional information on the City’s long-term debt can be found in the notes to the accompanying financial statements. Economic Factors and Outlook for Future Years The City of Grand Terrace finds itself in one of its strongest financial positions it has been in since its incorporation in 1978. The FY2014-15 budget was balanced with over 50% General Fund Balance, which exceeds the 18% fund balance recommended by the Government Accounting Standards Board (GASB). However, it is still important for the City’s financial management to report on current issues affecting the City and their economic impact on FY 2015-16, and future years. Despite reservations of the San Bernardino Local Agency Formation Commission regarding the City’s ability to sustain itself financially over the long term, Grand Terrace approaches its 40th birthday in 2018 and has proven itself to be a resilient and unique community in the center of the Inland Empire. From 1980 to 2011, the City survived on a combination of General Fund and redevelopment tax increment revenues, which allowed it to remain a small and safe bedroom community, while other cities doubled in size during the same time period. Grand Terrace took pride in being one of the safest communities in the Inland Empire. After the loss of redevelopment revenues, new light was shed on the structural imbalance between revenues and expenses contained in the City’s General Fund, forcing the City to restructure. As a result, the City has implemented many cost reduction and containment strategies, including reducing City Hall staff by approximately 67% and contracting out some essential services (Finance, Information Technology, Park Maintenance, and Animal Control). During the City’s restructuring, the economy also started to slowly improve, allowing the City to achieve a structurally-balanced budget for FY 2014-15. While management began to right size the organization, policy makers also made plans for the future, adopting a Vision and Strategic Plan, with a new focus on economic development. Grand Terrace Policy Makers adopted new values that included fiscal solvency and responsible fiscal management. Grand Terrace’s economic development strategy includes retention and expansion of existing business and soliciting new businesses that would enhance the quality of life of Grand Terrace and the surrounding communities. Grand Terrace has a current population of approximately 12,285 and is the smallest of the Inland Empire cities in the urban core. The City is geographically located between two of the most populous cities in the Inland Empire (Riverside and San Bernardino); while largely a bedroom community, Grand Terrace is in a position to take advantage of the new commercial and housing renaissance. The City’s way forward from 2016-2020 will be a focus on infrastructure, development and quality housing stock. The City will have a new entry way off the 1-215 corridor as CalTrans and SanBAG (San Bernardino Associated Governments) have secured funding to improve the Barton Road interchange into Grand Terrace. The interchange project is valued at $80,000,000 and will be fully funded from Federal and local transportation taxes. The interchange will increase capacity from 20,000 cars per day to over 40,000 cars per day. The intersection project will support the following projects: 1. $50,000,000 Grand Terrace High School completed in Spring 2012. The school brings in an additional 4,000 people into the community every day, which has supported a 10% increase in sales tax revenue in our casual dining category and made our new local Stater Bros. Market one of the top 10 performing stores. 16 6.a Packet Pg. 124 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) 2. Spring Valley Ranch housing project located in Riverside County but accessed through the City of Grand Terrace and Barton Road Interchange. At build-out it will have over 4,000 single family residences with very little to no commercial retail development. The City believes this will also continue to support sales tax growth to Barton Road businesses. 3. The City owns approximately 57-acres of undeveloped property along the I-215 freeway Barton Road exit. It is in the southwest area of the community and has been engaged with the Inland Empire’s most significant development entity (one of its oldest) to bring about a significant development project on the property. The developer will combine City owned land with other surrounding vacant parcels for a project that is estimated to have an overall construction value of $100,000,000. Staff anticipates this project to start to develop from 2019 – 2024. 4. Although Redevelopment has ended, the City’s Successor Agency and Housing Successor Agency retained several valuable properties that can be developed into significant pads on Barton Road. In addition, private development on Barton Rd is also starting to see significant interest. There are several large vacant parcels on the new Stater Bros. site and the Old Stater Bros. Shopping center that are currently under consideration for new private development. In all Barton Road is expected to be the commercial lifeblood of Grand Terrace over the next 5 years. On the residential side, the City wants to maintain its quality of life and reputation of having the lowest crime rate, highest median income with clean parks and streets. Therefore, new housing development will include mixed-use projects that incorporate quality housing stock with an emphasis on accessibility and walkable friendly neighborhoods. Construction has started on a 34- and 17-lot single-family detached subdivisions since 2016 with several other projects in the pipeline. Grand Terrace’s Median Home Value increased by 6% in 2015. With the significant job creation potential of the Southwest Corridor Project discussed above, upward pressure on existing home values will continue to be exerted until some equilibrium is reached between supply and demand. Given the limited, undeveloped residentially zoned property in the City—The City’s 2020 and Build-out (2035) Growth Projections indicate approximately 97 single and multi-family units can be built and Grand Terrace is one of the most desirable places to live in the Inland Empire. As a result of the improving economy, our retail sector is seeing 10-14% growth in sales taxes per quarter. Yet Grand Terrace is vulnerable as over 50% of our sales taxes are generated from 5 businesses in the City. Therefore, Grand Terrace continues to try and diversify its tax base by seeking major retail businesses to fill the retail sales leakage of Grand Terrace and the surrounding communities. The City Council is following its 2030 vision adopted in May 2014. This is the City’s first ever adopted Vision. It contains five, specific goals, with Goal #1 “Ensuring our Fiscal Viability” underscored by Goal #3 “Promote Economic Development”. The City’s Five-Year Financial Analysis clearly shows the fiscal challenges awaiting the City in all of the remaining fiscal years covered by the Analysis and despite the development and approval of a structurally-balanced budget for FY 2015-16. This led to the City adopting its first ever Quality of Life Enhancement and Preservation (QLEAP) Program. Although City Council balanced the FY2014-15 Budget and exceeded GASB recommended fund balance levels, the City Council recognized that a balance budget severely reduced the City’s level of service (service insolvency). The elimination of nonessential programs impacts the quality of life of residents, so City Council set out to restore some services, those that did not require long term financial commitment. The QLEAP Projects included adding quality of life projects back into the budget with year-end surpluses. The City added $477,000 in quality of life programs into the new 17 6.a Packet Pg. 125 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) fiscal year budget from $200,000 in additional police funding, to surveillance cameras, to youth employment and summer recreation. City Council recognizes that “quality of life” is an important economic factor that allows citizens to stay engaged and promote economic health of a community. Contacting the City's Financial Management This financial report is designed to provide the City’s residents, businesses, customers, investors, creditors and other stakeholders with a general overview of the City's finances and to show the City's accountability for the money it receives. If there are questions about this report or if additional financial information is needed, please contact the Finance Director's Office, at the City of Grand Terrace, 22795 Barton Road, Grand Terrace, California 92313, or call 909-824-6621. This report and other information are also available at the official City website at http://www.grandterrace-ca.gov. 18 6.a Packet Pg. 126 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE STATEMENT OF NET POSITION Governmental Business-Type Activities Activities Total Assets: Cash and investments 6,451,885$ 1,734,638$ 8,186,523$ Receivables: Accounts 57,117 102,053 159,170 Notes and loans 727,548 - 727,548 Accrued interest 533 - 533 Prepaid costs 2,858 - 2,858 Due from other governments 1,034,612 - 1,034,612 Land held for resale 640,166 - 640,166 Capital assets not being depreciated 3,775,185 - 3,775,185 Capital assets, net of depreciation 8,022,142 4,973,978 12,996,120 Total Assets 20,712,046 6,810,669 27,522,715 Deferred Outflows of Resources: Deferred outflows for Pension 195,702 - 195,702 Total Deferred Outflows of Resources 195,702 - 195,702 Liabilities: Accounts payable 324,854 411,808 736,662 Accrued liabilities 74,060 - 74,060 Accrued interest 22,076 - 22,076 Deposits payable 4,663 6,875 11,538 Due to other governments 946,437 - 946,437 Noncurrent liabilities: Due within one year 226,682 - 226,682 Due in more than one year 1,369,379 - 1,369,379 Other Post Employment Benefits 1,396,947 - 1,396,947 Net Pension Liability 3,229,236 - 3,229,236 Total Liabilities 7,594,334 418,683 8,013,017 Deferred Inflows of Resources: Deferred inflows for Pension 744,925 - 744,925 Total Deferred Inflows of Resources 744,925 - 744,925 Net Position: Net investment in capital assets 10,576,784 4,973,978 15,550,762 Restricted for: Community development projects 2,687,990 - 2,687,990 Public safety 5,755 - 5,755 Public works 2,517,891 - 2,517,891 Unrestricted (3,219,931) 1,418,008 (1,801,923) Total Net Position 12,568,489$ 6,391,986$ 18,960,475$ JUNE 30, 2015 Primary Government See Notes to Financial Statements 19 6.a Packet Pg. 127 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2015 Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government 1,684,252$ 303,197$ 9,551$ -$ Public safety 1,888,371 115,533 106,251 - Economic development 12,570 - - - Cultural and recreation 2,046,098 1,130,894 - - Public works 1,582,132 502,613 210,681 336,881 Interest on long-term debt 64,905 - - - Total Governmental Activities 7,278,328 2,052,237 326,483 336,881 Business-Type Activities: Waste Water Disposal 1,306,013 16,949 - - Total Business-Type Activities 1,306,013 16,949 - - Total Primary Government 8,584,341$ 2,069,186$ 326,483$ 336,881$ General Revenues: Taxes: Property taxes, levied for general purpose Sales taxes Franchise taxes Business licenses taxes Motor vehicle in lieu - unrestricted Use of money and property Other Total General Revenues Change in Net Position Net Position at Beginning of Year Restatement of Net Position Net Position at Beginning of Year, as Restated Net Position at End of Year Program Revenues See Notes to Financial Statements 20 6.a Packet Pg. 128 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) Primary Government Governmental Business-Type Activities Activities Total (1,371,504)$ -$ (1,371,504)$ (1,666,587) - (1,666,587) (12,570) - (12,570) (915,204) - (915,204) (531,957) - (531,957) (64,905) - (64,905) (4,562,727) - (4,562,727) - (1,289,064) (1,289,064) - (1,289,064) (1,289,064) (4,562,727) (1,289,064) (5,851,791) 2,287,751 - 2,287,751 827,251 - 827,251 449,109 - 449,109 73,969 - 73,969 5,212 - 5,212 724,424 900 725,324 53,958 - 53,958 4,421,674 900 4,422,574 (141,053) (1,288,164) (1,429,217) 16,409,844 7,186,390 23,596,234 (3,700,302) 493,760 (3,206,542) 12,709,542 7,680,150 20,389,692 12,568,489$ 6,391,986$ 18,960,475$ Net (Expenses) Revenues and Changes in Net Position See Notes to Financial Statements 21 6.a Packet Pg. 129 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2015 General Assets: Pooled cash and investments 3,167,304$ 1,302,424$ 37,435$ -$ Interest receivable 533 - - - Accrued revenue 32,025 - - 25,092 Prepaid costs 2,399 - - 459 Due from other funds 351,925 - - - Due from other governments 200,004 - 448,636 2,869 Advances to other funds - - 168,205 - Notes and loans receivable - - 727,548 - Property held for resale - - 640,166 - Total Assets 3,754,190$ 1,302,424$ 2,021,990$ 28,420$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable 194,101$ -$ -$ 121,631$ Accrued liabilities 52,397 - - 19,933 Due to other funds - - - 15,826 Due to other governments 925,272 - 21,165 - Advances from other funds 168,205 - - - Refundable deposits - 4,663 - - Total Liabilities 1,339,975 4,663 21,165 157,390 Deferred Inflows of Resources: Unavailable revenues - - 58,548 3,898 Total Deferred Inflows of Resources - - 58,548 3,898 Fund Balances: Nonspendable: Prepaid costs 2,399 - - - Deposits - 4,663 - - Restricted for: Community development projects - - 1,942,277 - Public safety - - - - Public works - 1,293,098 - - Committed to: Committed to contingencies 880,000 - - - Committed to equipment replacement 400,000 - - - Committed to budget stabilization 559,823 - - - Committed to fund other post employment benefit obligations 261,500 - - - Unassigned 310,493 - - (132,868) Total Fund Balances 2,414,215 1,297,761 1,942,277 (132,868) Total Liabilities, Deferred Inflows of Resources, and Fund Balances 3,754,190$ 1,302,424$ 2,021,990$ 28,420$ Street Improvement Housing Authority Child Care Center Special Revenue Funds See Notes to Financial Statements 22 6.a Packet Pg. 130 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2015 Assets: Pooled cash and investments Interest receivable Accrued revenue Prepaid costs Due from other funds Due from other governments Advances to other funds Notes and loans receivable Property held for resale Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Due to other funds Due to other governments Advances from other funds Refundable deposits Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Prepaid costs Deposits Restricted for: Community development projects Public safety Public works Committed to: Committed to contingencies Committed to equipment replacement Committed to budget stabilization Committed to fund other post employment benefit obligations Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Capital Projects Funds Other Total Governmental Governmental Funds Funds -$ 1,944,722$ 6,451,885$ - - 533 - - 57,117 - - 2,858 - 15,437 367,362 340,101 43,002 1,034,612 - - 168,205 - - 727,548 - - 640,166 340,101$ 2,003,161$ 9,450,286$ -$ 9,122$ 324,854$ - 1,730 74,060 335,488 16,048 367,362 - - 946,437 - - 168,205 - - 4,663 335,488 26,900 1,885,581 343,416 - 405,862 343,416 - 405,862 - - 2,399 - - 4,663 - 745,713 2,687,990 - 5,755 5,755 - 1,224,793 2,517,891 - - - 880,000 - - 400,000 - - 559,823 - - 261,500 (338,803) - (161,178) (338,803) 1,976,261 7,158,843 340,101$ 2,003,161$ 9,450,286$ Capital Projects See Notes to Financial Statements 23 6.a Packet Pg. 131 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) THIS PAGE INTENTIONALLY LEFT BLANK 24 6.a Packet Pg. 132 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2015 Fund balances of governmental funds 7,158,843$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds.11,797,327 Deferred outflows related to contributions made after the actuarial measurement date and actuarial adjustments due to proportionate share made to the accrued net pensions liability. 195,702 Some liabilities are not due and payable in the current period and therefore are not reported in funds. Those liabilities consist of: Lease payable (1,220,543)$ Accrued interest payable (22,076) Long-term compensated absences payable (88,866) OPEB Obligation (1,396,947) (2,728,432) CJPIA liability not available in the current period. (286,652) Governmental funds report all pension contributions as expenditures, however in the statement of net position, the excess of the plan proportionate share of the total pension liability over the proportionate share of the plan fiduciary net position is reported as a net pension liability.(3,229,236) Deferred inflows related to the net difference between projected and actual earnings on pension plan investments and difference between actual contributions and proportionate share of contributions.(744,925) Revenues that are not available in the current period are deferred in the governmental funds, but not in the statement of net position. 405,862 Net Position of governmental activities 12,568,489$ See Notes to Financial Statements 25 6.a Packet Pg. 133 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 General Revenues: Taxes 3,103,756$ -$ -$ -$ Assessments - - - - Intergovernmental 14,763 - - - Charges for services 913,508 153,079 - 1,119,667 Use of money and property 722,509 669 20,935 17 Fines and forfeitures 74,911 - - - Miscellaneous 53,465 - - - Total Revenues 4,882,912 153,748 20,935 1,119,684 Expenditures: Current: General government 823,706 - - - Public safety 1,769,058 - - - Public works 962,384 - - - Economic development - - 5,631 - Cultural and recreation 504,739 - - 1,269,135 Debt service: Principal retirement 189,942 - - - Interest and fiscal charges 64,905 - - - Capital outlay: Project improvement costs - - - - Total Expenditures 4,314,734 - 5,631 1,269,135 Excess (Deficiency) of Revenues Over (Under) Expenditures 568,178 153,748 15,304 (149,451) Other Financing Sources (Uses): Transfers in - 73,978 - - Transfers out (90,927) - - - Total Other Financing Sources (Uses) (90,927) 73,978 - - Net Change in Fund Balances 477,251 227,726 15,304 (149,451) Fund Balances, Beginning of Year, as previously reported 1,936,964 1,070,035 1,926,973 16,583 Restatements - - - - Fund Balances, Beginning of Year, as restated 1,936,964 1,070,035 1,926,973 16,583 Fund Balances, End of Year 2,414,215$ 1,297,761$ 1,942,277$ (132,868)$ Street Improvement Housing Authority Child Care Center Special Revenue Funds See Notes to Financial Statements 26 6.a Packet Pg. 134 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes Assessments Intergovernmental Charges for services Use of money and property Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Public works Economic development Cultural and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: Project improvement costs Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year, as previously reported Restatements Fund Balances, Beginning of Year, as restated Fund Balances, End of Year Capital Projects Funds Other Total Governmental Governmental Funds Funds -$ 335,984$ 3,439,740$ - 194,700 194,700 - 337,262 352,025 - 99,466 2,285,720 - 874 745,004 - 18,875 93,786 493 - 53,958 493 987,161 7,164,933 - - 823,706 - 100,551 1,869,609 493 339,095 1,301,972 - - 5,631 - - 1,773,874 - - 189,942 - - 64,905 1,298 64,258 65,556 1,791 503,904 6,095,195 (1,298) 483,257 1,069,738 - 90,927 164,905 - (73,978) (164,905) - 16,949 - (1,298) 500,206 1,069,738 (191,976) 1,485,288 6,243,867 (145,529) (9,233) (154,762) (337,505) 1,476,055 6,089,105 (338,803)$ 1,976,261$ 7,158,843$ Capital Projects See Notes to Financial Statements 27 6.a Packet Pg. 135 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) THIS PAGE INTENTIONALLY LEFT BLANK 28 6.a Packet Pg. 136 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2015 Net change in fund balances - total governmental funds 1,069,738$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense or are allocated to the appropriate functional expense when the cost is below the capitalization threshold. This activity is reconciled as follows: Cost of assets capitalized 65,556$ Depreciation expense (613,377) (547,821) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has an effect on net position. Capital lease payments 189,942 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Change in OPEB obligation (271,470) Change in insurance payable (482,976) Change in compensated absences payable 17,880 (736,566) Pension obligation expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.(88,688) Revenues that are not available in the current period are deferred in the governmental funds, but not in the statement of activities.(27,658) Change in net position of governmental activities (141,053)$ See Notes to Financial Statements 29 6.a Packet Pg. 137 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2015 Business-Type Activity Assets: Current: Pooled cash and investments 1,734,638$ Receivables: Accrued revenue 102,053 Total Current Assets 1,836,691 Noncurrent: Capital assets: Sewer system 7,415,106 Less accumulated depreciation (2,441,128) Total Noncurrent Assets 4,973,978 Total Assets 6,810,669$ Liabilities and Net Position Liabilities: Current: Accounts payable 411,808$ Deposits payable 6,875 Total Current Liabilities 418,683 Total Liabilities 418,683 Net Position: Net investment in capital assets 4,973,978 Unrestricted 1,418,008 Total Net Position 6,391,986 Total Liabilities and Net Position 6,810,669$ Waste Water Disposal See Notes to Financial Statements 30 6.a Packet Pg. 138 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2015 Business-Type Activity Operating Revenues: Charges for services 16,949$ Total Operating Revenues 16,949 Operating Expenses: Depreciation expense 88,570 Contract services 1,209,013 Other expenses 8,430 Total Operating Expenses 1,306,013 Operating Income (Loss)(1,289,064) Nonoperating Revenues (Expenses): Interest income 900 Total Nonoperating Revenues (Expenses)900 Changes in Net Position (1,288,164) Net Position: Beginning of Year, as previously reported 7,186,390 Restatements 493,760 Beginning of Fiscal Year, as restated 7,680,150 End of Fiscal Year 6,391,986$ Waste Water Disposal See Notes to Financial Statements 31 6.a Packet Pg. 139 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2015 Business-Type Activity Cash Flows from Operating Activities: Cash payments to suppliers (829,041)$ Net Cash Provided (Used) by Operating Activities (829,041) Cash Flows from Investing Activities: Interest received 900 Net Cash Provided (Used) by Investing Activities 900 Net Increase (Decrease) in Cash and Cash Equivalents (828,141) Cash and Cash Equivalents at Beginning of Year 2,562,779 Cash and Cash Equivalents at End of Year 1,734,638$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(1,289,064)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 88,570 (Increase) decrease in accounts receivable (35,640) Increase (decrease) in accounts payable 407,093 Total Adjustments 460,023 Net Cash Provided (Used) by Operating Activities (829,041)$ Waste Water Disposal See Notes to Financial Statements 32 6.a Packet Pg. 140 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2015 Agency Funds Assets: Pooled cash and investments 407,404$ 19,464,511$ Cash and investments with fiscal agent - 1,757,985 Receivables: Interest - 13,144 Due from other governments - 925,272 Land held for resale - 4,842,472 Total Assets 407,404$ 27,003,384 Liabilities: Accounts payable 361$ 19,870 Accrued liabilities - 5,702 Accrued interest - 396,108 Due to other governments - 1,988,140 Long-term liabilities: Due in one year - 565,000 Due in more than one year - 18,587,956 Due to external parties 407,043 - Total Liabilities 407,404$ 21,562,776 Net Position: Held in trust for other purposes 5,440,608 Total Net Position 5,440,608$ Successor Agency Private Purpose Trust Fund See Notes to Financial Statements 33 6.a Packet Pg. 141 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2015 Additions: RPTTF distribution 1,447,785$ Investment earnings 31,530 Total Additions 1,479,315 Deductions: General 208,329 Debt service payments - interest 1,185,394 Other payments 455,633 Total Deductions 1,849,356 Changes in Net Position (370,041) Net Position - Beginning of the Year 5,810,649 Net Position - End of the Year 5,440,608$ Successor Agency Private Purpose Trust Fund See Notes to Financial Statements 34 6.a Packet Pg. 142 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS JUNE 30, 2015 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Organization and Summary of Significant Accounting Policies a. Description of Entity The City of Grand Terrace (City) was incorporated November 1978 under the General Laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: public safety (law enforcement), highways and streets, cultural and recreational activities, public improvements, planning and zoning, building and safety, low and moderate income housing programs, and general administrative services. As required by generally accepted accounting principles, these financial statements present the City of Grand Terrace (the primary government) and its component units. The component units discussed below are included in the City’s reporting entity because of the significance of their operational or financial relationship with the City. These entities are legally separate from each other. However, the City of Grand Terrace’s elected officials have a continuing full or partial accountability for fiscal matters of the other entities. The financial reporting entity consists of: 1) the City, 2) organizations for which the City is financially accountable, and 3) organizations for which the nature and significance of their relationship with the City are such that exclusions would cause the City’s financial statements to be misleading or incomplete. An organization is fiscally dependent on the primary government if it is unable to adopt a budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, component unit balances and transactions are reported in a manner similar to the balances and transactions of the City. Component units are presented on a blended basis when the component unit’s governing body is substantially the same as the City’s or the component unit provides services almost entirely to the City. The following component units of the City have been included in the financial reporting entity as blended component units. A description of these component units and the method of incorporating their financial information in the accompanying general purpose financial statements are summarized as follows: The City of Grand Terrace Public Financing Authority The Grand Terrace Public Financing Authority (the Authority) was established on July 16, 1991, pursuant to a Joint Powers Agreement between the City of Grand Terrace and the former Community Redevelopment Agency of the City of Grand Terrace. The Authority was created to facilitate financing for public capital improvements benefiting the City and the former RDA. The City Council also acts as the governing body of the Authority. The Authority’s activities are blended with those of the City in these financial statements and are reported as a debt service fund. There are several other governmental agencies, including the County of San Bernardino, school districts, and others, providing services within the City of Grand Terrace. Those agencies have independently elected governing boards other than the City Council of the City of Grand Terrace and no financial accountability to the City of Grand Terrace. Consequently, financial information for these agencies is not included within this financial report. 35 6.a Packet Pg. 143 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) b. Government-Wide and Fund Financial Statements The government-wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to interfund activities, payables, and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions, including special assessments, that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenue are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the cash flows. Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified-accrual basis of accounting. Under the modified-accrual basis of accounting, revenues are recognized in these funds when susceptible to accrual (i.e., when they are both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers property taxes collected after year-end as available, if they are collected within 60 days of the end of the current fiscal 36 6.a Packet Pg. 144 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) period. Other revenue susceptible to accrual includes sales tax, state gasoline taxes, investment income, and certain other intergovernmental revenues. Expenditures in the governmental funds are generally recognized in the accounting period in which the related fund liability is incurred, if measurable, except for unmatured principal and interest on general long-term debt, as well as compensated absences and claims and judgments, which are recognized when due. The City reports the following major governmental funds: x The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. x The Street Improvement Fund accounts for all revenues collected for street capital improvement fees under the Municipal Code. Funds are expended in accordance with the latest adopted fiscal impact study and capital needs assessment. x The Housing Authority Fund accounts for the housing assets transferred from the former redevelopment agency and Low and Moderate housing activities of the City. The fund activities are restricted to the same requirements as the former Low and Moderate Income Housing Fund of the Agency. x The Child Care Center Fund accounts for the fully licensed child care program of the City, operated by experienced child care educators. The program provides a structured environment for physical, intellectual, and social development of the child. x The Capital Projects Fund accounts for financial resources provided by grant funds for the land acquisition and construction of the Grand Terrace Fitness Park. The City reports the following major proprietary fund: x The Waste Water Disposal Fund is used to account for the provision of waste water disposal services to the residences and businesses of the City. Additionally, the City reports the following fund types: x The Private Purpose Trust Fund is used to account for the resources, obligations, and activities of the Successor Agency of the Redevelopment Agency of the City of Grand Terrace as directed by the Oversight Board to settle the affairs of the dissolved agency (see Note 16). x The Agency Funds are used to account for the resources held by the City in a fiduciary capacity. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the government's waste water disposal function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 37 6.a Packet Pg. 145 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues for the Waste Water Disposal Fund are charges to customers for sales and services. Operating expenses for the same Enterprise Fund include the cost of sales and services, administration expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. d. Other Accounting Policies 1. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. The County of San Bernardino collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in March preceding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1, the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31. 2. Cash and Cash Equivalents For the purpose of the statement of cash flows, the City considers cash and cash equivalents as short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The City follows the practice of pooling cash and investments of all funds. Since cash and investments are pooled, the City utilizes the assumption that the cash and investments in the Enterprise Fund are cash and cash equivalents. 38 6.a Packet Pg. 146 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 3. Investments The City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement. 4. Property Held for Resale Property held for resale is recorded at the lower of cost or net realizable value. Fund balances are reserved in amounts equal to the carrying value of the land held for resale because such assets are not available to finance the City’s current operations. 5. Compensated Absences The short-term portion is determined to be the amount due to employees for future absences which is attributable to services already rendered and which is expected to be paid during the next fiscal year. The total amount of liability for compensated absences is segregated between short-term and long-term as indicated above and both portions are reflected in the government-wide statements. Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Normally, an employee cannot accrue more than two times his regular annual entitlement. Sick leave is payable when an employee is unable to work because of illness. Upon termination, regular employees with 5 years continuous service will be paid 40% for any unused sick leave. 6. Capital Assets Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than or equal to $5,000 (amount not rounded) and an estimated useful life of at least two years. Such assets are recorded at historical cost, or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. 39 6.a Packet Pg. 147 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives. Assets Years Buildings 50 Machinery & Equipment 5-15 Vehicles 6-15 Improvements other than buildings 15-20 Infrastructure 20-30 Sewer Lines 90 7. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The government only has one item that qualifies for reporting in this category. Deferred outflows relating to the net pension obligation reported in the government-wide statement of net position. These outflows are the results of contributions made after the measurement period, which are expensed in the following year, and of adjustments due to difference in proportions and the difference between actual contributions made and the proportionate share of the risk pool’s total contributions. These amounts are deferred and amortized over the expected average remaining service life time. In addition to liabilities, the Statement of Net Position and the governmental Balance Sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has two items, one of which, arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second item relates to the net difference between projected and actual earnings on pension plan investments and the difference between actual contributions and the proportionate share of contributions. 8. Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources 40 6.a Packet Pg. 148 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. 9. Fund Balance Flow Assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 10. Fund Balance Policies The City implemented GASB Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions”. This statement provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balance more transparent. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used: • Nonspendable – amounts that are not in a spendable form (such as inventory) or are required to be maintained intact. • Restricted – amounts constrained to specific purposes by their providers (such as grantors, bondholders and higher levels of government), through constitutional provisions or by enabling legislation. • Committed – amounts constrained to specific purposes by a government itself, using the highest level of decision-making authority; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest level action to remove or change the constraint. • Assigned – amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. • Unassigned – amounts that are for any purpose; positive amounts are reported only in a general fund. The City Council establishes (and modifies or rescinds) fund balance commitments by passage of an ordinance or resolution. The City has not designated any level of authority for assigning fund balance; therefore, the City Council can assign fund balance. When both restricted and unrestricted resources are available for use when expenditures are incurred, it is the City’s policy to use restricted resources first, then 41 6.a Packet Pg. 149 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) unrestricted resources as they are needed. It is the City’s policy to consider committed amounts as being restricted first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. 11. Use of Estimates The financial statements have been prepared in accordance with generally accepted accounting principles accepted in the United States of America and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts 12. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures. For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications. 13. New Accounting Principles Adopted During the fiscal year ended June 30, 2015, the City implemented the following Governmental Accounting Standards Board (GASB) standards: GASB Statement No. 68 Accounting and financial Reporting for Pensions—an Amendment of GASB Statement No. 27 will improve the decision-usefulness of information in employer and governmental nonemployer contributing entity financial reports and will enhance its value for assessing accountability and interperiod equity by requiring recognition of the entire net pension liability and a more comprehensive measure of pension expense. Decision-usefulness and accountability also will be enhanced 42 6.a Packet Pg. 150 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) through new note disclosures and required supplementary information. The requirements of this statement are effective for financial statements for periods beginning after June 15, 2014. This statement has been implemented. GASB Statement No. 69 Government Combinations and Disposals of Government Operations. This statement establishes accounting and financial reporting standards related to government combinations and disposals of government operations. As used in this statement, the term government combinations includes a variety of transactions referred to as mergers, acquisitions, and transfers of operations. The provisions of GASB Statement No. 69 are effective for financial statements beginning after December 15, 2014. The implementation of this statement did not affect the financial statements. GASB Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date – an Amendment of GASB Statement No. 68. The objective of this Statement is to address an issue regarding application of the transition provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local government employer or nonemployer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. The provisions of GASB Statement No. 71 are effective for financial statements beginning after June 15, 2014. This statement has been implemented. Additional standards released by GASB impacting future fiscal years are as follows: GASB Statement No. 72 Fair Value Measurement and Application. This Statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Statement provides guidance for determining a fair value measurement for financial reporting purposes. This Statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The requirements of this Statement are effective for financial statement for reporting periods beginning after June 15, 2015. The City has not fully judged the effect of the implementation of GASB Statement No. 72 as of the date of the basic financial statements. GASB Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statement Nos. 67 and 68. The objective of this Statement is to improve the usefulness of information about pensions included in the general purpose external financial reports of state and local governments for making decisions and assessing accountability. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits with regard to providing decision-useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. The provisions in GASB Statement No. 73 are effective for fiscal years beginning after June 15, 2015 – except those provisions that address 43 6.a Packet Pg. 151 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) employers and governmental nonemployer contributing entities for pensions that are not within the scope of GASB Statement No. 68, which are effective for fiscal years beginning after June 15, 2016. The City has not fully judged the effect of the implementation of GASB Statement No. 73 as of the date of the basic financial statements. GASB Statement No. 74 Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The objective of this Statement is to improve the usefulness of information about postemployment benefits other than pensions (other postemployment benefits or OPEB) included in the general purpose external financial reports of state and local governmental OPEB plans for making decisions and assessing accountability. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits (pensions and OPEB) with regard to providing decision-useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. The provisions in Statement 74 are effective for fiscal years beginning after June 15, 2016. The City has not fully judged the effect of the implementation of GASB Statement No. 74 as of the date of the basic financial statements. GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves information provided by state and local governmental employers about financial support for OPEB that is provided by other entities. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits (pensions and OPEB) with regard to providing decision-useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. The provisions in Statement No. 75 are effective for fiscal years beginning after June 15, 2017. The City has not fully judged the effect of the implementation of GASB Statement No. 75 as of the date of the basic financial statements. GASB Statement No. 76 The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The objective of this Statement is to identify—in the context of the current governmental financial reporting environment—the hierarchy of generally accepted accounting principles (GAAP). The “GAAP hierarchy” consists of the sources of accounting principles used to prepare financial statements of state and local governmental entities in conformity with GAAP and the framework for selecting those principles. This Statement reduces the GAAP hierarchy to two categories of authoritative GAAP and addresses the use of authoritative and nonauthoritative literature in the event that the accounting treatment for a transaction or other event is not specified within a source of authoritative GAAP. The provisions in GASB Statement 76 are effective for reporting periods beginning after June 15, 2015. The City has not fully judged the effect of the implementation of GASB Statement No. 76 as of the date of the basic financial statements. 44 6.a Packet Pg. 152 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) GASB Statement No. 77 Tax Abatement Disclosures. The objective of this Statement is to provide financial statement users with essential information about the nature and magnitude of the reduction in tax revenues through tax abatement programs in order to better assess whether current-year revenues were sufficient to pay for current-year services, compliance with finance-related legal or contractual requirements, where a government’s financial resources come from and how it uses them, and financial position and economic condition and how they have changed over time. The requirements of this Statement are effective for reporting periods beginning after December 15, 2015. The City has not fully judged the effect of the implementation of GASB Statement No. 77 as of the date of the basic financial statements. 14. Deficit Fund Balances As of June 30, 2015, the following funds have deficit fund balances: Amount Child Care Center Fund (132,868)$ Capital Projects Fund (338,803) These deficits will be funded by future revenues or transfers from other funds. 15. Budget The Spring Mount Ranch special revenue fund did not adopt a budget and therefore budgetary comparison information is not presented. Note 2: Cash and Investments Cash and investments as of June 30, 2015, are classified in the accompanying financial statements as follows: Statement of Net Position: Cash and investments 8,186,523$ Statement of Fiduciary Net Position: Cash and Investments 19,871,915 Cash and Investments with Fiscal Agents 1,757,985 Total Cash and Investments 29,816,423$ Cash and investments as of June 30, 2015, consist of the following: Cash on Hand 1,750$ Deposits with Financial Institutions 3,605,461 Investments 26,209,212 Total Cash and Investments 29,816,423$ 45 6.a Packet Pg. 153 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 2: Cash and Investments (Continued) Authorized Investments The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. Authorized Investment Type Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in One Issuer U.S. Treasury Obligations 5 years None None Repurchase Agreements 6 years None None Certificates of Deposit 7 years None None Passbook Savings Accounts 8 years 30% None Securities Issued by Federal Agencies N/A None None Local Agency Investment Fund (LAIF) N/A None 50,000,000$ Mutual Funds N/A 20% None Pools and other Investment Structures N/A None None Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustees. The table identifies certain provisions of these debt agreements that address interest rate risk, credit risk and concentration of credit risk. Authorized Investment Type Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in One Issuer Government Obligations 5 years None None FHLB's 6 years None None FHLMC's 7 years None None Farm Credit Banks 8 years 30% None FNMA's N/A None None Financing Corp Debt Obligations N/A None 50,000,000$ Certificates of Deposit N/A 20% None Deposits fully Insured by FDIC N/A None None USAID Guaranteed Notes N/A None None Investment Agreements N/A None None Bankers Acceptances N/A None None Municipal Obligations rated Aaa N/A None None Commercial Paper rated P-1 N/A None None Repurchase Agreements N/A None None Money Market Mutual Funds rated AAAm N/A None None 46 6.a Packet Pg. 154 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 2: Cash and Investments (Continued) Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations are presented below. Authorized Investment Type Amount 12 Months or Less Certificates of Deposit 94,000$ 94,000$ Local Agency Investment Fund (LAIF) 19,346,883 19,346,883 Local Gov. Invest. Pool (CAMP) 3,888,332 3,888,332 First American Treasury 1,071,782 1,071,782 General Savings 50,230 50,230 Held by Trustee: Money Market Mutual Funds 1,757,985 1,757,985 Total 26,209,212$ 26,209,212$ Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Information about the minimum rating required by the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each type of investment held by the City can be found below. Authorized Investment Type Amount Minimum Legal Rating Actual Rating Certificates of Deposit 94,000$ N/A N/A Local Agency Investment Fund (LAIF) 19,346,883 N/A N/A Local Gov. Invest. Pool (CAMP) 3,888,332 N/A N/A First American Treasury 1,071,782 N/A N/A General Savings 50,230 N/A N/A Held by Trustee: Money Market Mutual Funds - Fiscal Agents 1,757,985 AAAm AAAm/A+ Total 26,209,212$ 47 6.a Packet Pg. 155 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 2: Cash and Investments (Continued) Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. During the fiscal year ended June 30, 2015, the City did not hold any investments in any one issuer (other than Mutual Funds and External Investment Pools) that represent 5% or more of total City’s investments. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2015, the City had deposits with financial institutions in excess of federal depository insurance limits of $2,564,303 and $626,542 per account held in collateralized accounts for the City and Successor Agency, respectively. Investments in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF has reported to its participating agencies that, as of June 30, 2015, the carrying amount (at amortized cost) of the Pool was $64,850,840,279 and the estimated fair value of the Pool was $64,870,214,443. The City’s proportionate share of the Pool’s market value (as determined by LAIF) as of June 30, 2015, was $19,346,883 Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities. Local Government Investment Pool The City is a voluntary participant in the Local Government Investment Pool, “CAMP” (California Asset Management Program). CAMP is a California Joint Powers Authority, 48 6.a Packet Pg. 156 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 2: Cash and Investments (Continued) established to provide public agencies with professional investment services, and is directed by a Board of Trustees, which is made up of experienced local government finance directors and treasurers. The CAMP Pool is a permitted investment for all local agencies under California Government Code Section 53601(p). The City reports its share in the investment pool at the estimated fair market value. As of June 30, 2015, the City’s share of the Pool (as determined by CAMP) is $3,888,332. Included in the CAMP’s investment portfolio are U.S. treasury notes, bonds, bills or certificates of indebtedness or other obligations of the United States, federal agency or U.S. government-sponsored enterprise obligations, participations or other instruments, repurchase agreements, bills of exchange or time drafts, negotiable certificates of deposits, commercial paper of prime quality of the highest ranking or of the highest letter and number rating. Pooled Cash The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the cash balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. Note 3: Interfund Receivable, Payable and Transfers The composition of interfund balances at June 30, 2015, is as follows: Due to/from other funds: Receivable Fund Payable Fund Amount General Fund Child Care Fund (1) 15,826$ CDBG Fund (2) 611 Capital Projects Fund (3) 335,488 Nonmajor Governmental Funds Nonmajor Governmental Funds (4) 15,437 367,362$ (1) The General Fund advanced funds to the Child Care Fund to cover deficit cash balances. (2) The General Fund advanced funds to the CDBG Fund to cover deficit cash balances. (3) The General Fund advanced funds to the Capital Project Fund for current staff time in the amount of $10,067 and to cover deficit cash balances in the amount of $325,421. (4) The Facilities Development Fund advanced funds to the Traffic Safety fund to pay for delinquent contract fees due to the Redflex Traffic Systems. 49 6.a Packet Pg. 157 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 3: Interfund Receivable, Payable and Transfers (Continued) Advances from/to other funds: Receivable Fund Payable Fund Amount Housing Authority Fund General Fund 168,205$ 168,205$ In April 1980, the CRA entered into a pass-through agreement with the City, which was found to be in noncompliance with State statutes. The misallocated tax increment was being treated as advances payable to the former Community Redevelopment Agency from the General Fund. Since the close of the Redevelopment Agency, the advance receivable was transferred to the Successor Agency and is shown as a due from other government in the Private Purpose Trust Fund in the amount of $925,272. Interest on the advance accrues at an interest rate equal to the Local Agency Investment Fund yield. The advance is to be repaid as funds are available. Interfund Transfers: Fund Receiving Transfers Fund Making Transfers Amount Nonmajor Governmental Funds General Fund (1) 90,927$ Nonmajor Governmental Funds Nonmajor Governmental Funds (2) 73,978 Total Interfund Transfers 164,905$ (1) Transfers totaling $90,579 were made from the General Fund to the State Gas Tax fund for franchise sweep fees and pavement impact fees to Gas Tax. (2) Transfers totaling $348 were made from the General Fund to the Capital Project/Bond Proceeds fund to reimburse prior year transfers. (3) Transfers totaling $73,978 were made to fund the Michigan/Main Signal Light capital project. Note 4: Loans Receivable General Fund The City offers an employee loan program under which employees may be loaned, interest free, up to $2,000 towards the purchase of a computer. The loans are repaid over a period not to exceed twenty-four months through payroll deductions. As of June 30, 2015, all remaining loans have been paid back to the City. 50 6.a Packet Pg. 158 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 5: Capital Assets Capital assets activity for the year ended June 30, 2015, was as follows: Beginning Ending Balance Additions Deletions Balance Governmental Activities: Capital assets, not being depreciated: Land 2,177,069$ -$ -$ 2,177,069$ Construction-in-progress 1,596,818 1,298 - 1,598,116 Total Capital Assets, Not Being Depreciated 3,773,887 1,298 - 3,775,185 Capital assets, being depreciated: Buildings 6,268,981 - - 6,268,981 Machinery and Equipment 850,350 - - 850,350 Vehicles 529,221 59,708 - 588,929 Improvements other than buildings 4,407,212 - - 4,407,212 Infrastructure 4,307,376 4,550 - 4,311,926 Total Capital Assets, Being Depreciated 16,363,140 64,258 - 16,427,398 Less accumulated depreciation: Buildings 2,899,850 155,603 - 3,055,453 Machinery and Equipment 672,198 31,689 - 703,887 Vehicles 465,548 20,571 - 486,119 Improvements other than buildings 2,464,749 173,798 - 2,638,547 Infrastructure 1,289,534 231,716 - 1,521,250 Total Accumulated Depreciation 7,791,879 613,377 - 8,405,256 Total Capital Assets, Being Depreciated, Net 8,571,261 (549,119) - 8,022,142 Governmental Activities Capital Assets, Net 12,345,148$ (547,821)$ -$ 11,797,327$ Depreciation expense was charged to functions of the primary government as follows: Governmental Activities: General government 88,112$ Public safety 12,554 Public works 260,821 Culture and recreation 251,890 Total Depreciation expense - Governmental Activitites 613,377$ 51 6.a Packet Pg. 159 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 5: Capital Assets (Continued) Beginning Ending Balance Additions Deletions Balance Business-type Activities: Capital assets, being depreciated: Sewer mains 4,023,128$ -$ -$ 4,023,128$ Laterals 1,890,944 - - 1,890,944 Manholes 1,298,760 - - 1,298,760 Improvements 202,274 - - 202,274 Total Capital Assets, Being Depreciated 7,415,106 - - 7,415,106 Less accumulated depreciation: Sewer mains 1,337,450 44,701 - 1,382,151 Laterals 541,092 21,011 - 562,103 Manholes 402,379 14,431 - 416,810 Improvements 71,637 8,427 - 80,064 Total Accumulated Depreciation 2,352,558 88,570 - 2,441,128 Business-type Activities Capital Assets, Net 5,062,548$ (88,570)$ -$ 4,973,978$ Note 6: Long-Term Liabilities Long-term liability activity for the year ended June 30, 2015, was as follows: Beginning Ending Due Within Balance Adjustments* Additions Deletions Balance One Year Capital Leases Zions National Bank 1,410,485$ -$ -$ 189,942$ 1,220,543$ 199,091$ Total Capital Leases 1,410,485 - - 189,942 1,220,543 199,091 CJPIA Retrospective Liability - - 286,652 - 286,652 - OPEB Obligation 1,125,477 - 279,203 7,733 1,396,947 - Net Pension Liability - 3,689,771 - 460,535 3,229,236 - Compensated Absences 106,746 - 73,294 91,174 88,866 27,591 Total Long-Term Liabilities 2,642,708$ 3,689,771$ 639,149$ 749,384$ 6,222,244$ 226,682$ * Adjustments are the result of the implementation of GASB Statement No. 68. Lease Payable On August 28, 2009, the City entered into a Lease Agreement (Lease) with Zions First National Bank in order to refinance the City of Grand Terrace Refunding Certificates of Participation, Issue of 1997, which was issued to finance city hall and other public improvements. The City used the proceeds of the Lease of $2,162,000 and funds on hand of $358,000 to current refund the $2,520,000 of outstanding 1997 Certificates of Participation. Under the Lease, the City is to lease property to Zions and in return Zions will lease the property back to the City in consideration of the payment by the City of semiannual lease payments commencing March 1, 2010 through September 1, 2020 at 4.76% interest. 52 6.a Packet Pg. 160 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Long-Term Liabilities (Continued) Debt service payments to maturity for the 2009 Zions National Bank lease are as follows: Year Ending June 30 Principal Interest 2016 199,091$ 64,906$ 2017 208,681 55,756 2018 218,732 46,167 2019 229,268 36,116 2020 240,310 14,537 2021 124,461 2,962 Total 1,220,543$ 220,444$ CJPIA Retrospective Deposit Payables Retrospective deposit payables are cost allocation adjustments to prior coverage periods. Some claims take many years to resolve and over time their estimated value changes. The retrospective adjustments are calculated annually and take into consideration all the changes in claim values that occurred during the most recent year. The formula is designed to adequately cover the cost of claims brought against members and to ensure the overall financial strength and security of the Authority. The formula was developed to be as equitable as possible by taking into consideration both risk exposure and claims experience of individual members. CJPIA has temporarily deferred the payment on retrospective deposits owed to the Authority by members. The payment deferral period extends until July 1, 2015, for the Workers’ Compensation program. Retrospective deposit payments are scheduled to resume on these dates. At June 30, 2015, the City has a retrospective deposit payable of $286,652. More information on the CJPIA retrospective balances can be found on the CJPIA website at CJPIA.org. Net OPEB Liability The City’s policies relating to OPEB are described in Note 8 of the Notes to Financial Statements. The liability will be paid in future years by the General Fund as it becomes due. Net Pension Liability See Note 7 detailing the net pension liability. The total liability at June 30, 2015 was $3,229,236. Compensated Absences The City’s policies relating to compensated absences are described in Note 1 of the Notes to Financial Statements. The liability will be paid in future years as it becomes due by the General Fund. 53 6.a Packet Pg. 161 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Pension Plan Plan Description The City contributes to the California Public Employees Retirement System (PERS), a cost sharing multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of PERS’ annual financial report may be obtained from their executive office: 400 “P” Street, Sacramento, California 95814. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. Below is the summary of the plans’ provisions and benefits in effect at June 30, 2015, for which the City of Grand Terrace has contracted: Tier 1 Tier 2 PEPRA Hire date Prior to December 13, 2012 December 13, 2012 but prior to January 1, 2013 January 1, 2013 and after Benefit formula 2.7% @ 55 2% @ 60 2% @ 62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs minimum 52 yrs Monthly benefits, as a % of eligible compensation 2% - 2.7%, 50 yrs - 63+ yrs, respectively 1.092% - 2.418%, 50 yrs - 63+ yrs, respectively 1.000% - 2.500%, 52 yrs - 67+ yrs, respectively Required employee contribution rates 7.947% 7.947% 6.308% Required employer contribution rates 21.991% 8.049% 6.250% Miscellaneous cost-sharing plans Contribution Description Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The City is 54 6.a Packet Pg. 162 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Pension Plan (Continued) required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2015, the contributions recognized as a part of pension expense for the plan was $159,393 and $157,288 for employer and employee contributions, respectively. Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of June 30, 2015, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows: Miscellaneous Tier 1 and 2 3,229,086$ Miscellaneous PEPRA 150 Total Net Pension Liability: 3,229,236$ Proportionate Share of Net Pension Liability The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2014, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2013 rolled forward to June 30, 2014 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2013 and 2014 was as follows: Miscellaneous Tier 1 and 2 Miscellaneous PEPRA Total Miscellaneous Plans Proportion - June 30, 2013 0.12034% 0.00001%0.12034% Proportion - June 30, 2014 0.13065% 0.00001%0.13066% Change - Increase (Decrease)0.01032% 0.00000%0.01032% 55 6.a Packet Pg. 163 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Pension Plan (Continued) For the year ended June 30, 2015, the City recognized a total pension expense of $248,081 for all plans in total. At June 30, 2015, the City reported deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows of Resources Deferred Inflows of Resources City contribution subsequent to the measurement date 159,393$ -$ Net Difference between Projected and Actual Earnings on Pension Plan Investments - 712,133 Adjustment due to Difference in Proportions 31,220 833 Difference between proportion actuarial and actual contributions 5,089 31,959 Total 195,702$ 744,925$ $159,393 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Period Ended June 30: Deferred Outflows/(Inflows) of Resources 2015 (174,253)$ 2016 (174,253) 2017 (174,253) 2018 (185,857) (708,616)$ 56 DR A F T 6.a Packet Pg. 164 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Pension Plan (Continued) Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2014 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2013 total pension liability. The June 30, 2013 and the June 30, 2014 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Cost Method Discount Rate 7.50% Inflation 2.75% Salary Increases 3.3% - 14.2% (1) Investment Rate of Return 7.50% (2) Mortality Rate Table (3) Derived using CalPERS’ Membership Data for all Funds Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter (1) Depending on age, service and type of employment Actuarial Assumptions (3) The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report on the CalPERS' website. (2) Net of Pension Plan Investment and Administrative Expenses; includes Inflation All other actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications. Discount Rate The discount rate used to measure the total pension liability was 7.50 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based 57 6.a Packet Pg. 165 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Pension Plan (Continued) on the testing, none of the tested plans run out of assets. Therefore, the current 7.50 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.50 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section. According to Paragraph 30 of GASB Statement 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.50 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.65 percent. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability. CalPERS determined this difference was deemed immaterial to the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan. More information can be found on the CalPERS’ website. CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate will require Board action and proper stakeholder outreach. For these reasons, CalPERS expects to continue using a discount rate net of administrative expenses for GASB Nos. 67 and 68 calculations through at least the 2017-2018 fiscal year. CalPERS will continue to check the materiality of the difference in calculation until such time as they have changed their methodology. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. 58 6.a Packet Pg. 166 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Pension Plan (Continued) Asset Class New Strategic Allocation Real Return Years 1 - 10 (1) Real Return Years 11+ (2) Global Equity 47.0% 5.25% 5.71% Global Fixed Income 19.0 0.99 2.43 Inflation Sensitive 6.0 0.45 3.36 Private Equity 12.0 6.83 6.95 Real Estate 11.0 4.50 5.13 Infrastructure and Forestland 3.0 4.50 5.09 Liquidity 2.0 (0.55) (1.05) (1) An expected inflation of 2.5% used for this period (2) An expected inflation of 3.0% used for this period Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher than the current rate: Discount Rate - 1% Current Discount Discount Rate +1% 6.50% 7.50% 8.50% Miscellaneous Tier 1 and 2 5,032,758$ 3,229,086$ 1,732,208$ Miscellaneous PEPRA 266 150 52 TOTAL: 5,033,024$ 3,229,236$ 1,732,260$ Plans' Net Pension Liability/(Asset) Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS’ website for additional information. Payable to the Pension Plan At June 30, 2015, the Local Government reported no payable for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2015. Note 8: Other Post-Employment Benefits Plan Description The City provides a medical plan coverage for retirees. This coverage is available for employees who satisfy the requirements for retirement under the California Public Employees Retirement System (PERS), which is age 50 or older with at least five years of State or public agency service. The healthcare coverage provided by PERS meets the definition of an Other Post Employment Benefit (OPEB) as described in GASB Statement No. 45. 59 6.a Packet Pg. 167 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 8: Other Post-Employment Benefits (Continued) Medical plan benefits are provided through PERS, as permitted by the Public Employees’ Medical and Hospital and Care Act (PEMHCA). As a PEMHCA employer, the City has elected the unequal contribution method, where the contribution will be increased annually over twenty years until it reaches the same employer contribution as active employee medical plan coverage. Funding Policy The contribution requirements of the City are established and may be amended by the City Council. The required contribution is based on pay-as-you-go financing requirements. For fiscal year 2014- 2015, the City contributed $ $7,733 to the plan. Annual OPEB Cost and Net OPEB Obligation The City’s annual other OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially in accordance with GASB Statement No. 45. The City obtained an updated actuarial study of the plan, but is in the process of having one performed in 2015. The calculation is solely based on the 2011 actuarial report prepared by Bartel & Associates, LLC. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) not to exceed thirty years. The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation: Annual required contribution (ARC) 308,000$ Interest in net OPEB obligation 45,019 Adjustment to ARC (73,816) Annual OPEB cost (expense) 279,203 Contributions made (7,733) Decrease/(Increase) in net OPEB obligation 271,470 Net OPEB obligation - beginning of year 1,125,477 Net OPEB obligation - end of year 1,396,947$ The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for 2015 and the two preceding years were as follows: Fiscal Annual Percentage of Net OPEB Year OPEB Annual OPEB Obligation End Cost Cost Contributed (Asset) 6/30/2013 262,747$ 2% 863,986$ 6/30/2014 265,254 1% 1,125,477 6/30/2015 279,203 3% 1,396,947 Three Year Trend Information - OPEB 60 6.a Packet Pg. 168 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 8: Other Post-Employment Benefits (Continued) Funded Status and Progress The funded status of the plan as of June 30, 2011 (the most recent valuation) was as follows: Year Ending Actuarial Valuation Date Actuarial Value of Assets (a) Actuarial Accrued Liability (AAL) (b) Unfunded AAL (UAAL) (b-a) Funded Ratio (a/b) Covered Payroll (c) UAAL as a Percent of Covered Payroll [(b-a)/c] 6/30/2013 6/30/2011 -$ 2,290,000$ 2,290,000$ 0.0% 1,444,650$ 158.5% 6/30/2014 6/30/2011 - 2,558,000 2,558,000 0.0% 1,911,000 133.9% 6/30/2015 6/30/2011 - - - 0.0% 1,973,000 0.0% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of Plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for the benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the Plan as understood by the employer and the Plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial assets, consistent with the long-term perspective of the calculations. The actuarial cost method used for determining the benefit obligations is the Projected Unit Credit Method. The actuarial assumptions included a 4.5% investment rate of return, which is the assumed rate of the expected long-term investment returns on plan assets calculated based on the funded level of the plan at the valuation date, and an annual healthcare cost trend rate of 10 percent initially, reduced by increments of 1.0% per year to an ultimate rate of 5.0% after the sixth year. Note 9: Residential Mortgage Revenue Bonds In 1984, the La Verne-Grand Terrace Housing Finance Agency, a joint powers authority duly established by appropriate resolutions of the Redevelopment Agency of the City of La Verne and the Community Redevelopment Agency of the City of Grand Terrace pursuant to Government Code Section 6500, et. seq., issued Residential Mortgage Revenue Bonds totaling $38,625,000 pursuant to Chapters 1-5 of part 5 of Division 31 of the Health and 61 6.a Packet Pg. 169 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Residential Mortgage Revenue Bonds (Continued) Safety Code of the State of California. The bonds provide for long-term low interest mortgage loans to qualified home buyers of single family homes in certain residential developments as specified by the indenture. The bonds are payable solely from payments made on and secured by a pledge of the home mortgages and the funds and accounts held for the benefit of the bondholders pursuant to the indenture. The bonds do not represent a lien or charge upon the funds or property of the Agency. Neither the full faith and credit, nor the taxing power, of the Agency is pledged to the payment of the bonds. For these reasons, the bonds are not shown as liabilities in the accompanying financial statements. The mortgage bond program is administered by a separate administrator apart from the Agency as specified by the indenture. The fiscal agent and trustee duties are also performed by a separate trustee bank apart from the Agency. In June 1992, the joint powers authority sold the home mortgages. The proceeds from the sale of the mortgages plus other assets were irrevocably placed into a trust with an escrow agent to provide for all future debt service on the bonds through the year 2017. At June 30, 2015, approximately $1,850,000 of the bonds were outstanding. Note 10: Risk Management The City is a member of the California Joint Powers Insurance Authority (the "Authority"). The following joint venture disclosures are made in compliance with GASB Code Section J50.103: Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Grand Terrace is a member of the California Joint Powers Insurance Authority (the “Authority”). The Authority is composed of 119 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other coverage. The Authority’s pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a 9-member Executive Committee. Self-Insurance Programs of the Authority General Liability Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Claims are pooled separately between police and non-police. Costs are spread to members as follows: the first $30,000 of each occurrence is charged directly to the member’s primary deposit; costs from $30,000 to $750,000 and the loss development reserves associated with losses up to $750,000 are pooled based on the member’s share of losses under $30,000. Losses from $750,000 to $5,000,000 and the associated loss development reserves are pooled based on payroll. Costs of covered claims from $5,000,000 to $50,000,000 are paid by excess insurance. Costs of covered claims for subsidence losses from $15,000,000 to $25,000,000 are paid by excess insurance. The protection for each member is $50,000,000 per occurrence and annual aggregate. Administrative expenses are paid from the Authority’s investment earnings. 62 6.a Packet Pg. 170 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 10: Risk Management (Continued) Workers’ Compensation The City of Grand Terrace also participates in the workers’ compensation pool administered by the Authority. Each member pays a primary deposit to cover estimated losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Claims are pooled separately between public safety and non-public safety. Each member has a retention level of $50,000 for each loss and this is charged directly to the member’s primary deposit. Losses from $50,000 to $100,000 and the loss development reserve associated with losses up to $100,000 are pooled based on the member’s share of losses under $50,000. Losses from $100,000 to $2,000,000 and employer’s liability losses from $5,000,000 to $10,000,000 and loss development reserves associated with those losses are pooled based on payroll. Losses from $2,000,000 to $5,000,000 are pooled with California State Association of Counties – Excess Insurance Authority members. Costs from $2,000,000 to $300,000,000 are transferred to reinsurance carriers. Costs in excess of $300,000,000 are pooled among the Members based on payroll. Protection is provided per statutory liability under California Workers’ Compensation law. Administrative expenses are paid from the Authority’s investment earnings. Purchased Insurance Property Insurance The City of Grand Terrace participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City of Grand Terrace property is currently insured accordingly to a schedule of covered property submitted by the City of Grand Terrace to the Authority. The City of Grand Terrace property currently has all-risk property insurance protection in the amount of $12,961,600. There is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. Adequacy of Protection During the past three fiscal (claims) years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. Note 11: Contingencies As of June 30, 2015, in the opinion of the City Administration and its legal counsel, there are no outstanding matters, which would have a material effect on the financial position of the City. Note 12: Proposition 218 Proposition 218, which was approved by the voters in November 1996, will regulate the City's ability to impose, increase and extend taxes, assessments and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218 require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future by the voters. 63 6.a Packet Pg. 171 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 13: Successor Agency Private-Purpose Trust Fund to the Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26, (the Bill) that provides for the dissolution of all redevelopment agencies in the State of California. Most of California cities had established a redevelopment agency that was included in the reporting entity of the city as a blended component unit (since the city council, in many cases, also served as the governing board for those agencies). The Bill provided that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the "Successor Agency" to administer assets, pay and adhere to the provisions of enforceable obligations, and to expeditiously settle the affairs of the dissolved redevelopment agency. If the City declines to accept the role of Successor Agency, other local agencies may elect to perform this role. If no local agency accepts the role of Successor Agency, the Governor is empowered by the Bill to establish a local "designated local authority" to perform this role. On January 4, 2012, the City Council met and created the Successor Agency of the former Redevelopment Agency of the City of Grand Terrace in accordance with the Bill as part of the City of Grand Terrace. In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. Successor Agency long-term debt Schedule of changes in long-term liabilities as of June 30, 2015: Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental-Activities: Bonds Payable: 2011 Tax Allocation Bonds, Series A 14,635,000$ -$ 285,000$ 14,350,000$ 295,000$ 2011 Tax Allocation Bonds, Series B 5,195,000 - 255,000 4,940,000 270,000 Discount on Bonds issued (146,154) - (9,110) (137,044) - Total Bonds Payable 19,683,846$ -$ 530,890$ 19,152,956$ 565,000$ 2011A Tax Allocation Bonds In June of 2011, the former CRA issued the $15,175,000 Community Redevelopment Project Area Tax Allocation Bonds, Issue of 2011A. The Bonds were issued to finance public improvement projects pursuant to the Redevelopment Plan and for other redevelopment activities of the Agency. Interest varies from 2.00% to 6.00% and is payable semiannually on March 1 and September 1, commencing September 1, 2011. Principal payments are due annually commencing September 1, 2012, through September 1, 2033. The Bonds are payable from and secured by a pledge of Tax Increment, less amounts required to make payments under the Pass-Through Agreements, annual debt service of the 2004 Bonds and the Housing Set-Aside amount. The 2011A Tax Allocation Bond was transferred to the Successor Agency on February 1, 2012, as a result of the Redevelopment Agency closure. 64 6.a Packet Pg. 172 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 13: Successor Agency Private-Purpose Trust Fund to the Former Redevelopment Agency (Continued) Debt service payments to maturity for the 2011A Tax Allocation Bonds are as follows: Year Ending June 30 Principal Interest 2016 295,000$ 813,745$ 2017 310,000 801,645 2018 320,000 789,445 2019 330,000 776,680 2020 340,000 762,478 2021-2025 2,000,000 3,522,750 2026-2030 4,675,000 2,671,350 2031-2035 6,080,000 756,000 Total 14,350,000$ 10,894,093$ 2011B Tax Allocation Bonds In June of 2011, the former CRA issued the $5,650,000 Community Redevelopment Project Area Taxable Tax Allocation Bonds, Issue of 2011 B. The Bonds were issued for the purpose of acquiring land for resale and development in the Project Area. Interest varies from 7.10% to 7.70% and is payable semiannually on March 1 and September 1, commencing September 1, 2011. Principal payments are due annually commencing September 1, 2012 through September 1, 2026. The Bonds are payable from and secured by a pledge of Tax Increment, less amounts required to make payments under the Pass-Through Agreements, annual debt service of the 2004 Bonds and the Housing Set-Aside Amount. The 2011 B Tax Allocation Bond was transferred to the Successor Agency on February 1, 2012 as a result of the Redevelopment Agency closure. Debt service payments to maturity for the 2011 B Taxable Tax Allocation Bonds are as follows: Year Ending June 30 Principal Interest 2016 270,000$ 359,095$ 2017 290,000 339,215 2018 310,000 317,915 2019 335,000 295,018 2020 360,000 270,345 2021-2025 2,225,000 894,933 2026-2030 1,150,000 90,090 Total 4,940,000$ 2,566,611$ 65 6.a Packet Pg. 173 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Net Position and Fund Balance Restatements Beginning Net Position has been restated as follows: Governmental Activities To properly implement GASB 68 and record the accrued Net Pension Liability as of June 30, 2015 (3,689,771)$ To recognize the reversal of unavailable revenues recognized in previous year that have not yet been collected 144,231 To establish unavailable revenues for revenues recognized in previous years that have not yet been collected (145,529) To reverse receivables already collected in previous years (9,233) Total restatement of Net Position (3,700,302)$ Enterprise Funds To remove amounts due to the City of Colton per a settlement agreement reached in March 2014 493,760$ 493,760$ Beginning Fund Balance has been restated as follows: Governmental Funds To reverse receivables already collected in previous years (9,233)$ To establish unavailable revenues for revenues recognized in previous years that have not yet been collected (145,529) Total restatement of Net Position (154,762)$ 66 6.a Packet Pg. 174 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE COST SHARING MULTIPLE EMPLOYER BENEFIT PLAN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, 2015 2015 Miscellaneous Plan Proportion of the Net Pension Liability 0.05189% Proportionate Share of the Net Pension Liability 3,229,086$ Covered-Employee Payroll 1,413,686$ Proportionate Share of the Net Pension Liability as Percentage of Covered-Employee Payroll 228.42% Plan Fiduciary Net Position 10,366,842$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 76.25% PEPRA Miscellaneous Plan Proportion of the Net Pension Liability 0.00000% Proportionate Share of the Net Pension Liability 150$ Covered-Employee Payroll 38,927$ Proportionate Share of the Net Pension Liability as Percentage of Covered-Employee Payroll 0.39% Plan Fiduciary Net Position 732$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 82.99% Notes to Schedule: Changes of Assumptions: None Benefit Changes: None (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. 67 6.a Packet Pg. 175 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE COST SHARING MULTIPLE EMPLOYER BENEFIT PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, 2015 2015 Miscellaneous Plan Actuarially Determined Contribution 159,393$ Contribution in Relation to the Actuarially Determined Contribution (159,393) Contribution Deficiency (Excess)-$ Covered-Employee Payroll 1,413,686$ Contributions as a Percentage of Covered-Employee Payroll 17.02% PEPRA Miscellaneous Plan Actuarially Determined Contribution -$ Contribution in Relation to the Actuarially Determined Contribution - Contribution Deficiency (Excess)-$ Covered-Employee Payroll 38,927$ Contributions as a Percentage of Covered-Employee Payroll 10.43% Note to Schedule: Miscellaneous Plan and PEPRA Miscellaneous Plan Valuation Date: June 30, 2012 Methods and assumptions used to determine contribution rates: Single and Agent Employers Entry age normal cost method Amortization method Level percentage of payroll Assets valuation method Inflation 2.75% Salary Increases 3.30% to 14.20%, varies by Entry Age and Service Investment rate of return 7.5% net of administrative expenses Retirement age 55 years Mortality (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. Based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board, first used in the June 30, 2009 valuation. For purposes of the post-retirement mortality rates, those revised rates include 5 years of projected on-going mortality improvement using Scale AA published by the Society of Actuaries until June 30, 2010. There is no margin for future mortality improvement beyond the valuation date. The mortality assumption will be reviewed with the next experience study expected to be completed for the June 30, 2013 valuation to determine an appropriate margin to be used. 68 6.a Packet Pg. 176 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE GENERAL FUND YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,936,964$ 1,936,964$ 1,936,964$ -$ Resources (Inflows): Taxes 2,767,370 2,767,370 3,103,756 336,386 Intergovernmental 35,000 45,000 14,763 (30,237) Charges for services 837,400 852,100 913,508 61,408 Use of money and property 725,000 725,000 722,509 (2,491) Fines and forfeitures 25,000 25,000 74,911 49,911 Miscellaneous 5,000 5,000 53,465 48,465 Amounts Available for Appropriations 6,331,734 6,356,434 6,819,876 463,442 Charges to Appropriations (Outflow): General government 611,918 741,134 823,706 (82,572) Public safety 1,810,700 1,805,072 1,769,058 36,014 Cultural and recreation 509,294 514,794 504,739 10,055 Public works 1,145,555 1,174,130 962,384 211,746 Capital outlay 2,000 9,953 - 9,953 Debt service: Principal retirement 179,100 189,952 189,942 10 Interest and fiscal charges 75,800 64,958 64,905 53 Transfers out 91,500 91,500 90,927 573 Total Charges to Appropriations 4,425,867 4,591,493 4,405,661 185,832 Budgetary Fund Balance, June 30 1,905,867$ 1,764,941$ 2,414,215$ 649,274$ See Notes to Required Supplementary Information 69 6.a Packet Pg. 177 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE STREET IMPROVEMENT YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,070,035$ 1,070,035$ 1,070,035$ -$ Resources (Inflows): Charges for services - - 153,079 153,079 Use of money and property 2,000 2,000 669 (1,331) Transfers in - - 73,978 73,978 Amounts Available for Appropriations 1,072,035 1,072,035 1,297,761 225,726 Charges to Appropriations (Outflow): Public works 49,200 - - - Total Charges to Appropriations 49,200 - - - Budgetary Fund Balance, June 30 1,022,835$ 1,072,035$ 1,297,761$ 225,726$ See Notes to Required Supplementary Information 70 6.a Packet Pg. 178 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE HOUSING AUTHORITY YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,926,973$ 1,926,973$ 1,926,973$ -$ Resources (Inflows): Use of money and property - - 20,935 20,935 Amounts Available for Appropriations 1,926,973 1,926,973 1,947,908 20,935 Charges to Appropriations (Outflow): Economic development 10,200 10,200 5,631 4,569 Total Charges to Appropriations 10,200 10,200 5,631 4,569 Budgetary Fund Balance, June 30 1,916,773$ 1,916,773$ 1,942,277$ 25,504$ See Notes to Required Supplementary Information 71 6.a Packet Pg. 179 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE CHILD CARE CENTER YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 16,583$ 16,583$ 16,583$ -$ Resources (Inflows): Charges for services 1,199,750 1,252,171 1,119,667 (132,504) Use of money and property - - 17 17 Amounts Available for Appropriations 1,216,333 1,268,754 1,136,267 (132,487) Charges to Appropriations (Outflow): Cultural and recreation 1,159,010 1,211,431 1,269,135 (57,704) Capital outlay 400 400 - 400 Total Charges to Appropriations 1,159,410 1,211,831 1,269,135 (57,304) Budgetary Fund Balance, June 30 56,923$ 56,923$ (132,868)$ (189,791)$ See Notes to Required Supplementary Information 72 6.a Packet Pg. 180 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE NOTES TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2015 I. STEWARDSHIP Note 1: Stewardship, Compliance and Accountability a. Budgetary Data The annual budget is adopted by the City Council after the holding of a hearing and provides for the general operation of the City. The operating budget includes proposed expenditures and the means of financing them. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. This "appropriated budget" (as defined by GASB Code Section 2400.109) covers City expenditures in all governmental funds, except for the Public Financing Authority Debt Service Fund. This entity does not adopt an annual budget as effective budgetary control is achieved through bond indenture and other instrument provisions. Actual expenditures may not exceed budgeted appropriations at the fund level. Formal budgetary integration is employed as a management control device during the year. Commitments for materials and services, such as purchase orders and contracts, are recorded as encumbrances to assist in controlling expenditures. Encumbrances at year-end lapse, and then are added to the following year's budgeted appropriations. Also, unencumbered appropriations lapse at year-end. Annual budgets for the General, and Special Revenue Funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. Capital projects are budgeted through the Capital Project Funds. Appropriations for capital projects authorized, but not constructed or completed during the year, lapse at year-end, and are then included as a part of appropriations in the following year's annual budget. b. Excess of Expenditures over Appropriations Excess of expenditures over appropriations in individual funds are as follows: Fund Expenditures Appropriations Excess Major Funds: Child Care Center 1,269,135$ 1,211,831$ (57,304)$ Nonmajor Funds: AB 3229 COPS Fund 100,496 100,000 (496) Terrace Pines Landscape and Lighting District 11,014 7,800 (3,214) 73 6.a Packet Pg. 181 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Assets: Pooled cash and investments 90,930$ 303,395$ 5,755$ 45,660$ Receivables: Due from other governments - - - 4,000 Due from other funds - - - - Total Assets 90,930$ 303,395$ 5,755$ 49,660$ Liabilities and Fund Balances: Liabilities: Accounts payable -$ -$ -$ -$ Accrued liabilities - - - - Due to other funds - - - - Total Liabilities - - - - Fund Balances: Restricted for: Community development projects - 303,395 - - Public safety - - 5,755 - Public works 90,930 - - 49,660 Total Fund Balances 90,930 303,395 5,755 49,660 Total Liabilities and Fund Balances 90,930$ 303,395$ 5,755$ 49,660$ Storm Drain Improvement Park Development AB 3229 COPS Fund Special Revenue Funds Air Quality Improvement 74 6.a Packet Pg. 182 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Assets: Pooled cash and investments Receivables: Due from other governments Due from other funds Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Due to other funds Total Liabilities Fund Balances: Restricted for: Community development projects Public safety Public works Total Fund Balances Total Liabilities and Fund Balances (CONTINUED) 448,228$ 60,778$ 224,192$ 530,365$ - - - 30,440 - - 15,437 - 448,228$ 60,778$ 239,629$ 560,805$ 9,122$ -$ -$ -$ 1,730 - - - - 15,437 - - 10,852 15,437 - - - - 239,629 - - - - - 437,376 45,341 - 560,805 437,376 45,341 239,629 560,805 448,228$ 60,778$ 239,629$ 560,805$ Special Revenue Funds State Gas Tax Traffic Safety Facilities Development Measure I 75 6.a Packet Pg. 183 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Assets: Pooled cash and investments Receivables: Due from other governments Due from other funds Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Due to other funds Total Liabilities Fund Balances: Restricted for: Community development projects Public safety Public works Total Fund Balances Total Liabilities and Fund Balances Capital Projects Funds -$ 6,680$ 194,738$ 31,669$ 8,562 - - - - - - - 8,562$ 6,680$ 194,738$ 31,669$ -$ -$ -$ -$ - - - - 611 - - - 611 - - - 7,951 - 194,738 - - - - - - 6,680 - 31,669 7,951 6,680 194,738 31,669 8,562$ 6,680$ 194,738$ 31,669$ Special Revenue Funds Street Improvement Terrace Pines Landscape and Lighting Spring Mountain Ranch CDBG 76 6.a Packet Pg. 184 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Assets: Pooled cash and investments Receivables: Due from other governments Due from other funds Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Due to other funds Total Liabilities Fund Balances: Restricted for: Community development projects Public safety Public works Total Fund Balances Total Liabilities and Fund Balances Total Governmental Funds 2,332$ -$ 1,944,722$ - - 43,002 - - 15,437 2,332$ -$ 2,003,161$ -$ -$ 9,122$ - - 1,730 - - 16,048 - - 26,900 - - 745,713 - - 5,755 2,332 - 1,224,793 2,332 - 1,976,261 2,332$ -$ 2,003,161$ Capital Projects Funds Capital Project/Bonds Proceeds Barton / Colton Bridge 77 6.a Packet Pg. 185 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental - - 106,251 15,242 Charges for services 13,364 62,513 - - Use of money and property 44 140 - 24 Fines and forfeitures - - - - Total Revenues 13,408 62,653 106,251 15,266 Expenditures: Current: Public safety - - 100,496 - Public works - - - - Capital outlay - - - 59,708 Total Expenditures - - 100,496 59,708 Excess (Deficiency) of Revenues Over (Under) Expenditures 13,408 62,653 5,755 (44,442) Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 13,408 62,653 5,755 (44,442) Fund Balances, Beginning of Year 77,522 240,742 - 94,102 Restatements - - - - Fund Balances, Beginning of Year, as Restated 77,522 240,742 - 94,102 Fund Balances, End of Year 90,930$ 303,395$ 5,755$ 49,660$ Special Revenue Funds Storm Drain Improvement Park Development AB 3229 COPS Fund Air Quality Improvement 78 6.a Packet Pg. 186 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Total Revenues Expenditures: Current: Public safety Public works Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as Restated Fund Balances, End of Year (CONTINUED) -$ -$ -$ -$ - - - - 324,738 - - 195,439 - - 23,589 - 193 26 162 220 - 18,099 - - 324,931 18,125 23,751 195,659 - 55 - - 307,975 - - - - - - 4,550 307,975 55 - 4,550 16,956 18,070 23,751 191,109 90,579 - - - - - - - 90,579 - - - 107,535 18,070 23,751 191,109 329,841 36,504 215,878 369,696 - (9,233) - - 329,841 27,271 215,878 369,696 437,376$ 45,341$ 239,629$ 560,805$ Special Revenue Funds State Gas Tax Traffic Safety Facilities Development Measure I 79 6.a Packet Pg. 187 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Total Revenues Expenditures: Current: Public safety Public works Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as Restated Fund Balances, End of Year Capital Projects Funds -$ 11,246$ -$ -$ - - 194,700 - 20,106 224 - - - - - - 3 3 38 20 - 776 - - 20,109 12,249 194,738 20 - - - - 20,106 11,014 - - - - - - 20,106 11,014 - - 3 1,235 194,738 20 - - - - - - - (73,978) - - - (73,978) 3 1,235 194,738 (73,958) 7,948 5,445 - 105,627 - - - - 7,948 5,445 - 105,627 7,951$ 6,680$ 194,738$ 31,669$ CDBG Terrace Pines Landscape and Lighting Spring Mountain Ranch Street Improvement Special Revenue Funds 80 6.a Packet Pg. 188 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Total Revenues Expenditures: Current: Public safety Public works Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as Restated Fund Balances, End of Year Total Governmental Funds -$ -$ 11,246$ - - 194,700 - - 662,000 - - 99,466 1 - 874 - - 18,875 1 - 987,161 - - 100,551 - - 339,095 - - 64,258 - - 503,904 1 - 483,257 - 348 90,927 - - (73,978) - 348 16,949 1 348 500,206 2,331 (348) 1,485,288 - - (9,233) 2,331 (348) 1,476,055 2,332$ -$ 1,976,261$ Barton / Colton Bridge Capital Project/Bonds Proceeds Capital Projects Funds 81 6.a Packet Pg. 189 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE STORM DRAIN IMPROVEMENT YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 77,522$ 77,522$ 77,522$ -$ Resources (Inflows): Charges for services 5,600 5,600 13,364 7,764 Use of money and property - - 44 44 Amounts Available for Appropriations 83,122 83,122 90,930 7,808 Budgetary Fund Balance, June 30 83,122$ 83,122$ 90,930$ 7,808$ 82 6.a Packet Pg. 190 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE PARK DEVELOPMENT YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 240,742$ 240,742$ 240,742$ -$ Resources (Inflows): Charges for services 800 800 62,513 61,713 Use of money and property - - 140 140 Amounts Available for Appropriations 241,542 241,542 303,395 61,853 Charges to Appropriations (Outflow): Public works 2,300 - - - Capital outlay 15,000 15,000 - 15,000 Total Charges to Appropriations 17,300 15,000 - 15,000 Budgetary Fund Balance, June 30 224,242$ 226,542$ 303,395$ 76,853$ 83 6.a Packet Pg. 191 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE AB 3229 COPS FUND YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Intergovernmental 100,000 100,000 106,251 6,251 Amounts Available for Appropriations 100,000 100,000 106,251 6,251 Charges to Appropriations (Outflow): Public safety 100,000 100,000 100,496 (496) Total Charges to Appropriations 100,000 100,000 100,496 (496) Budgetary Fund Balance, June 30 -$ -$ 5,755$ 5,755$ 84 6.a Packet Pg. 192 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE AIR QUALITY IMPROVEMENT YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 94,102$ 94,102$ 94,102$ -$ Resources (Inflows): Intergovernmental 14,000 14,000 15,242 1,242 Use of money and property - - 24 24 Amounts Available for Appropriations 108,102 108,102 109,368 1,266 Charges to Appropriations (Outflow): Capital outlay - 64,000 59,708 4,292 Total Charges to Appropriations - 64,000 59,708 4,292 Budgetary Fund Balance, June 30 108,102$ 44,102$ 49,660$ 5,558$ 85 6.a Packet Pg. 193 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE STATE GAS TAX YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 329,841$ 329,841$ 329,841$ -$ Resources (Inflows): Taxes - - - - Use of money and property - - 193 193 Transfers in 91,500 91,500 90,579 (921) Amounts Available for Appropriations 745,741 745,741 745,351 (390) Charges to Appropriations (Outflow): Public works 402,490 402,490 307,975 94,515 Total Charges to Appropriations 402,490 402,490 307,975 94,515 Budgetary Fund Balance, June 30 343,251$ 343,251$ 437,376$ 94,125$ 86 6.a Packet Pg. 194 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE TRAFFIC SAFETY YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 as restated 27,271$ 27,271$ 27,271$ -$ Resources (Inflows): Use of money and property - - 26 26 Fines and forfeitures 38,400 38,400 18,099 (20,301) Amounts Available for Appropriations 65,671 65,671 45,396 (20,275) Charges to Appropriations (Outflow): Public safety 5,200 600 55 545 Total Charges to Appropriations 5,200 600 55 545 Budgetary Fund Balance, June 30 60,471$ 65,071$ 45,341$ (19,730)$ 87 6.a Packet Pg. 195 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE FACILITIES DEVELOPMENT YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 215,878$ 215,878$ 215,878$ -$ Resources (Inflows): Charges for services 3,400 3,400 23,589 20,189 Use of money and property - - 162 162 Amounts Available for Appropriations 219,278 219,278 239,629 20,351 Budgetary Fund Balance, June 30 219,278$ 219,278$ 239,629$ 20,351$ 88 6.a Packet Pg. 196 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE MEASURE I YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 369,696$ 369,696$ 369,696$ -$ Resources (Inflows): Intergovernmental 170,000 170,000 195,439 25,439 Use of money and property - - 220 220 Amounts Available for Appropriations 539,696 539,696 565,355 25,659 Charges to Appropriations (Outflow): Public works 12,000 - - - Capital outlay 46,000 46,000 4,550 41,450 Transfers out 112,000 112,000 - 112,000 Total Charges to Appropriations 170,000 158,000 4,550 153,450 Budgetary Fund Balance, June 30 369,696$ 381,696$ 560,805$ 179,109$ 89 6.a Packet Pg. 197 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE CDBG YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 7,948$ 7,948$ 7,948$ -$ Resources (Inflows): Intergovernmental 49,530 49,530 20,106 (29,424) Use of money and property - - 3 3 Amounts Available for Appropriations 57,478 57,478 28,057 (29,421) Charges to Appropriations (Outflow): Public works 49,530 49,530 20,106 29,424 Total Charges to Appropriations 49,530 49,530 20,106 29,424 Budgetary Fund Balance, June 30 7,948$ 7,948$ 7,951$ 3$ 90 6.a Packet Pg. 198 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE TERRACE PINES LANDSCAPE AND LIGHTING DISTRICT YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 5,445$ 5,445$ 5,445$ -$ Resources (Inflows): Taxes 5,000 5,000 11,246 6,246 Intergovernmental 5,200 5,200 224 (4,976) Use of money and property - - 3 3 Fines and forfeitures - - 776 776 Amounts Available for Appropriations 15,645 15,645 17,694 2,049 Charges to Appropriations (Outflow): Public works 7,800 7,800 11,014 (3,214) Total Charges to Appropriations 7,800 7,800 11,014 (3,214) Budgetary Fund Balance, June 30 7,845$ 7,845$ 6,680$ (1,165)$ 91 6.a Packet Pg. 199 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE STREET IMPROVEMENT - CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 105,627$ 105,627$ 105,627$ -$ Resources (Inflows): Use of money and property - - 20 20 Transfers in 112,000 112,000 - (112,000) Amounts Available for Appropriations 217,627 217,627 105,647 (111,980) Charges to Appropriations (Outflow): Capital outlay 112,000 112,000 - 112,000 Transfers out - - 73,978 (73,978) Total Charges to Appropriations 112,000 112,000 73,978 38,022 Budgetary Fund Balance, June 30 105,627$ 105,627$ 31,669$ (73,958)$ 92 6.a Packet Pg. 200 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE COMBINING STATEMENT OF ASSETS AND LIABILITIES ALL AGENCY FUNDS JUNE 30, 2015 Totals Assets: Pooled cash and investments 326,228$ 81,176$ 407,404$ Total Assets 326,228$ 81,176$ 407,404$ Liabilities: Accounts payable 361$ -$ 361$ Deposits payable 325,867 81,176 407,043 Total Liabilities 326,228$ 81,176$ 407,404$ Refundable Deposits Trust Fund Employees Deferred Comp Trust Fund 93 6.a Packet Pg. 201 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) CITY OF GRAND TERRACE COMBINING STATEMENT OF ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2015 Balance Balance 7/1/2014 Additions Deductions 6/30/2015 Refundable Deposits Trust Fund Assets: Pooled cash and investments 220,596$ 249,579$ 143,947$ 326,228$ Total Assets 220,596$ 249,579$ 143,947$ 326,228$ Liabilities: Accounts payable 922$ 83,359$ 83,920$ 361$ Deposits payable 219,674 193,824 87,631 325,867 Total Liabilities 220,596$ 277,183$ 171,551$ 326,228$ Employees Deferred Comp Trust Fund Assets: Pooled cash and investments 80,162$ 1,014$ -$ 81,176$ Total Assets 80,162$ 1,014$ -$ 81,176$ Liabilities: Deposits payable 80,162$ 1,014$ -$ 81,176$ Total Liabilities 80,162$ 1,014$ -$ 81,176$ Totals - All Agency Funds Assets: Pooled cash and investments 300,758$ 250,593$ 143,947$ 407,404$ Total Assets 300,758$ 250,593$ 143,947$ 407,404$ Liabilities: Accounts payable 922$ 83,359$ 83,920$ 361$ Deposits payable 299,836 194,838 87,631 407,043 Total Liabilities 300,758$ 278,197$ 171,551$ 407,404$ 94 6.a Packet Pg. 202 At t a c h m e n t : E x h i b i t a - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 5 ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) April 12, 2016 To the Honorable Mayor and Members of the City Council City of Grand Terrace, California We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Grand Terrace (the City) for the year ended June 30, 2015. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and OMB Circular A-133, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated June 15, 2015. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in the notes to the financial statements. As described in Note 1, the City changed accounting policies related to pensions reporting by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 68, Accounting and Financial Reporting for Pensions – an Amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an Amendment of GASB Statement No. 68 in fiscal year 2014-2015. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the government-wide statement of activities. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022 An Association of Independent Accounting Firms 6.b Packet Pg. 203 At t a c h m e n t : E x h i b i t B - A u d i t O v e r v i e w L e t t e r ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) To the Honorable Mayor and Members of the City Council City of Grand Terrace, California Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, we detected misstatements as a result of audit procedures which were material, and were subsequently corrected by management. The details of these misstatements are described in a separate letter dated April 12, 2016. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated April 12, 2016. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to management discussion and analysis, the Schedule of Proportionate Share of the Net Pension Liability, the Schedule of Plan Contributions, the budgetary comparison schedules for the General Fund, Street Improvement Fund, Housing Authority, and Child Care Center Fund, and the Notes to the Required Supplementary Information, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining statements, individual fund statements, and budgetary comparison schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and 6.b Packet Pg. 204 At t a c h m e n t : E x h i b i t B - A u d i t O v e r v i e w L e t t e r ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) To the Honorable Mayor and Members of the City Council City of Grand Terrace, California methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for fiscal year 2014-2015 audit: GASB Statement No. 68, Accounting and Financial Reporting for Pensions – An Amendment of GASB Statement No. 27. GASB Statement No. 69, Government Combinations and Disposals of Government Operations. GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to Measurement Date – an Amendment of GASB Statement No. 68. The following Governmental Accounting Standards Board (GASB) pronouncements are effective in the following fiscal year audit and should be reviewed for proper implementation by management: Fiscal year 2015-2016 GASB Statement No. 72, Fair Value Measurement and Application. GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statement Nos. 67 and 68. GASB Statement No. 76, The Hierarchy of Generally accepted Accounting Principles for State and Local Governments. Fiscal year 2016-2017 GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. Fiscal year 2017-2018 GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Restriction on Use This information is intended solely for the use of the City Council and management of the City of Grand Terrace and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Brea, California 6.b Packet Pg. 205 At t a c h m e n t : E x h i b i t B - A u d i t O v e r v i e w L e t t e r ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Grand Terrace, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Grand Terrace, California, (the City) as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated April 12, 2016. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the following deficiencies to be material weaknesses: Unavailable Revenue During our audit testwork of the City’s accounts receivable balances, we noted that an account receivable was set up in the prior year for grant expenditure incurred on the Grand Terrace Fitness Park project. However, the receivable was not expected to be received during the City’s revenue recognition period and was incorrectly recorded as revenue instead of unavailable revenue. A journal entry was provided to reclassify the amount. We recommend that the City review its grant receivable accruals for amounts to be received after the City’s revenue recognition period and properly classify these amounts as unavailable revenue at June 30. 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022 An Association of Independent Accounting Firms 6.c Packet Pg. 206 At t a c h m e n t : E x h i b i t C - I n t e r n a l C o n t r o l & C o m p l i a n c e R e p o r t ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) To the Honorable Mayor and Members of the City Council City of Grand Terrace, California Management’s Response: The City will include in its year-end procedures, a review of all prior year grant receivable accruals for any unavailable revenues not actually received during the City’s revenue recognition period. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Brea, California April 12, 2016 6.c Packet Pg. 207 At t a c h m e n t : E x h i b i t C - I n t e r n a l C o n t r o l & C o m p l i a n c e R e p o r t ( 1 9 2 3 : A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 5 ) AGENDA REPORT MEETING DATE: May 24, 2016 Council Item TITLE: Calling for General Municipal Election - November 8, 2016 PRESENTED BY: Pat Jacquez-Nares, City Clerk RECOMMENDATION: 1. Adopt a Resolution of the City Council of the City of Grand Terrace, California Calling and Giving Notice of the Holding of a General Municipal Election on Tuesday, November 8, 2016, For the Election of Certain Officers and Requesting the Board of Supervisors of the County of San Bernardino to Consolidate the General Municipal Election with the Statewide General Election to be Held Pursuant to Elections Code Section 10403 relating to General Law Cities; and 2. Adopt a Resolution Establishing Regulations for Candidates for Elective Office Pertaining to Candidate's Statements Submitted to the Voters at an Election to be Held on Tuesday, November 8, 2016. 2030 VISION This item supports our core value of open and inclusive government. BACKGROUND: In an effort to conduct municipal elections in an efficient and cost effective manner while complying will all state regulations pertaining to municipal elections, the San Bernardino County Registrar of Voters has conducted the City's General Municipal Elections since incorporation. In order to request the services of the San Bernardino County Registrar of Voters Office for the upcoming November 8, 2016, General Municipal Election, the City Council must adopt resolutions calling and giving notice, requesting the County services and setting regulations for candidate statements. DISCUSSION: On November 8, 2016, the City of Grand Terrace will hold its General Municipal Election to elect three Council seats, at large, with four-year terms. The nomination period begins on July 18, 2016 and will close on August 12, 2016. Only candidates wishing to submit a candidate statement will be required to pay a deposit of $253.00 to cover the cost of printing the statement in the sample ballots provided. As indicated earlier in the staff report, the City Council is required to adopt the two referenced Resolutions requesting the services of the County Registrar of Voters for the November 8, 2016, 7 Packet Pg. 208 Election. The adopted Resolutions need to be submitted to the County no later than July 1, 2016. The Resolution calling and giving notice of a General Municipal Election on Tuesday, November 8, 2016, for the election of certain officers and requesting the Board of Supervisors of the County of San Bernardino to consolidate the General Municipal Election with the Statewide General Election to be held pursuant to Elections Code Section 10403 relating to General Law Cities in attached for your consideration as well as the Resolution establishing regulations for candidates for elective office pertaining to candidate's statements submitted to the voters at an election to be held on Tuesday, November 8, 2016. FISCAL IMPACT: The County of San Bernardino Registrar of Voters has estimated the cost for services provided to the City of Grand Terrace for the November 8, 2016, General Municipal Election in the amount of approximately $10,000.00. Sufficient funds have been included in the proposed FY 2016-2017 budget. ATTACHMENTS:  Resolution Calling Election (PDF)  Resolution Candidate Statements (PDF) APPROVALS: Pat Jacquez-Nares Completed 05/19/2016 9:04 AM City Attorney Completed 05/19/2016 2:21 PM Finance Completed 05/19/2016 2:28 PM City Manager Completed 05/19/2016 5:39 PM City Council Pending 05/24/2016 6:00 PM 7 Packet Pg. 209 RESOLUTION NO. 2016-XX PAGE 1 OF 3 MAY 26.2016 RESOLUTION NO.2016- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE,CALIFORNIA,CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION ON TUESDAY,NOVEMBER 8, 2016,FOR THE ELECTION OF CERTAIN OFFICERS AND REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN BERNARDINO TO CONSOLIDATE THE GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD PURSUANT TO ELECTIONS CODE SECTION 10403 RELATING TO GENERAL LAW CITIES WHEREAS,under the provisions of the laws relating to general law cities on the State of California,a Regular Municipal Election shall be held on November 8, 2016,for the election of municipal officers;and WHEREAS,it is desirable that the General Municipal Election be consolidated with the Statewide General election to be held on the same date and that within the city,the precincts, polling places and election officers of the two elections be the same,and that the county election department of the County of San Bernardino canvass the returns of the General Municipal Election and that the election be held on all respects as if there were only one election; and NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF GRAND TERRACE,CALIFORNIA,DOES RESOLVE,DECLARE,DETERMINE AND ORDER AS FOLLOWS: SECTION 1.Pursuant to the requirements of the laws of the State of California relating to General Law cities,there is called and ordered to be held in the City of Grand Terrace, California,on Tuesday,November 8, 2016,a General Municipal Election for the purpose of electing three (3)members of the Grand Terrace City Council for the full term of four years. SECTION 2.The ballots to be used at the election shall be in the form and content as required by the law. SECTION 3.The City Clerk is authorized,instructed and directed to procure and furnish any and all official ballots,notices,printed matter and all supplies,equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. SECTION 4.The polls for the election shall be open at seven o’clock a.m.the day of the election and shall remain open continuously from that time until eight o’clock p.m.of the same day when the polls shall be closed,except as provided in Section 14401 of the elections code. 7.a Packet Pg. 210 At t a c h m e n t : R e s o l u t i o n C a l l i n g E l e c t i o n ( 1 9 1 9 : C a l l i n g f o r G e n e r a l M u n i c i p a l E l e c t i o n - N o v e m b e r 8 , 2 0 1 6 ) RESOLUTION NO. 2016-XX PAGE 2 OF 3 MAY 26.2016 SECTION 5.In all particulars not recited in this Resolution,the election shall be held and conducted as provided by law for holding municipal elections. SECTION 6.That pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of San Bernardino is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General election on Tuesday,November 8, 2016,for the purpose of the election of three (3)Members of the City Council each for full terms of four years. SECTION 7.The County Registrar of Voters is authorized to canvass the returns of the Regular Municipal Election.The election shall be held in all steps necessary for the holding of the consolidated election. SECTION 8.The Board of Supervisors is requested to issue instructions to the County Registrar of Voters to take any and all steps necessary for the holding of the consolidated election. SECTION 9.The City of Grand Terrace recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs. SECTION 10.Notice of the time and place of holding the election is given and the City Clerk is authorized,instructed and directed to give further or additional notice of the election,in time,form and manner as required by law.Notwithstanding the generality of the foregoing,the City Clerk is hereby instructed to act in conformance with California Elections Code Section 10403 and to file this Resolution with the Board of Supervisors of San Bernardino County and to transmit a copy of the same to the San Bernardino County elections official. SECTION 11.The City Clerk shall certify the adoption of this Resolution and enter it into the Book of Resolutions. PASSED,APPROVED AND ADOPTED this 24th day of May,2016. Darcy McNaboe, Mayor ATTEST: Pat Jacquez-Nares, City Clerk 7.a Packet Pg. 211 At t a c h m e n t : R e s o l u t i o n C a l l i n g E l e c t i o n ( 1 9 1 9 : C a l l i n g f o r G e n e r a l M u n i c i p a l E l e c t i o n - N o v e m b e r 8 , 2 0 1 6 ) RESOLUTION NO. 2016-XX PAGE 3 OF 3 MAY 26.2016 I,PAT JACQUEZ-NARES,CITY CLERK of the City of Grand Terrace,do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 24th day of May,2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Pat Jacquez-Nares,City Clerk APPROVED AS TO FORM: Richard L. Adams II, City Attorney 7.a Packet Pg. 212 At t a c h m e n t : R e s o l u t i o n C a l l i n g E l e c t i o n ( 1 9 1 9 : C a l l i n g f o r G e n e r a l M u n i c i p a l E l e c t i o n - N o v e m b e r 8 , 2 0 1 6 ) This page left intentionally blank. RESOLUTION NO. 2016-PAGE 1 OF 3 MAY 24, 2016 RESOLUTION NO. 2016- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE,CALIFORNIA,ESTABLISHING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY,NOVEMBER 8, 2016 WHEREAS,Section 13307 of the Elections Code of the State of California provides that the governing body of any local agency adopt regulations pertaining to materials prepared by any candidate for a municipal election,including costs of the candidates statement. NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF GRAND TERRACE,CALIFORNIA,DOES RESOLVE,DECLARE,DETERMINE AND ORDER AS FOLLOWS: SECTION 1.General Provisions That pursuant to Section 13307 of the Elections Code of the State of California,each candidate for elective office to be voted for at an Election to be held in the City of Grand Terrace on November 8, 2016,may prepare a candidate’s statement on an appropriate form provided by the City Clerk.The statement may include the name, age and occupation of the candidate and a brief description of no more than 200 words of the candidate’s education and qualifications expressed by the candidate himself or herself.The statement shall not include party affiliation of the candidate,nor membership or activity in partisan political organizations.The statement shall be filed (in typewritten form)in the office of the City Clerk at the time the candidate’s nomination papers are filed.The statement may be withdrawn but not changed,during the period for filing nomination papers and until 5:00 p.m.of the next working day after the close of nomination period. SECTION 2.Foreign Language Policy a.Pursuant to the Federal Voting Rights Act,candidate’s statements will be translated into all languages required by the County of San Bernardino.The County is required to translate candidate statements into the following language in addition to English:Spanish b.The County will print and mail sample ballots and candidate’s statement to all voters in English and Spanish. SECTION 3.Payment a.The candidate shall be required to pay for the cost of translating the candidate’s statement into any required foreign language as specified in 2(a) above. 7.b Packet Pg. 213 At t a c h m e n t : R e s o l u t i o n C a n d i d a t e S t a t e m e n t s ( 1 9 1 9 : C a l l i n g f o r G e n e r a l M u n i c i p a l E l e c t i o n - N o v e m b e r 8 , 2 0 1 6 ) RESOLUTION NO. 2016-PAGE 2 OF 3 MAY 24, 2016 b.The candidate shall be required to pay for the cost of printing the candidate’s statement in English and Spanish. c.The City Clerk shall estimate the total cost of printing,handling,translating,and mailing the candidate’s statement filed pursuant to this section,including costs incurred as a result of complying with the Voting Rights Act of 1965 (as amended),and require each candidate filing a statement to pay in advance to the local agency his pro rata share as a condition of having his or her statement included in their voter’s pamphlet.In the event the estimated payment is required, the estimate is just an approximation of the actual cost that varies from one election to another election and may be significantly more or less than the estimate,depending on the actual number of candidates filing statements. Accordingly,the clerk is not bound by the estimate and may,on the pro rata basis, bill the candidate for additional actual expense or refund any excess paid depending on the final actual cost.In the event of underpayment,the clerk may require the candidate to pay the balance of the cost incurred.In the event of overpayment,the clerk shall prorate the excess amount among the candidates and refund the excess amount paid within 30 days of the election. SECTION 4.Additional Materials No Candidate will be permitted to include additional materials in the sample ballot package. SECTION 5.The City Clerk shall provide each candidate or the candidate’s representative a copy of this Resolution at the time nominating petitions are issued. SECTION 6.All previous Resolutions establishing Council policy on payment for candidate’s statements are repealed. SECTION 7.This Resolution shall apply only to the election to be held on Tuesday, November 8, 2016,and shall then be repealed. SECTION 8.Certification The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the Book of Resolutions. PASSED,APPROVED AND ADOPTED this 24th day of May,2016. Darcy McNaboe, Mayor ATTEST: Pat Jacquez-Nares, City Clerk 7.b Packet Pg. 214 At t a c h m e n t : R e s o l u t i o n C a n d i d a t e S t a t e m e n t s ( 1 9 1 9 : C a l l i n g f o r G e n e r a l M u n i c i p a l E l e c t i o n - N o v e m b e r 8 , 2 0 1 6 ) RESOLUTION NO. 2016-PAGE 3 OF 3 MAY 24, 2016 I,PAT JACQUEZ-NARES,CITY CLERK of the City of Grand Terrace,do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 24th day of May,2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Pat Jacquez-Nares,City Clerk APPROVED AS TO FORM: Richard L. Adams II, City Attorney 7.b Packet Pg. 215 At t a c h m e n t : R e s o l u t i o n C a n d i d a t e S t a t e m e n t s ( 1 9 1 9 : C a l l i n g f o r G e n e r a l M u n i c i p a l E l e c t i o n - N o v e m b e r 8 , 2 0 1 6 ) This page left intentionally blank. AGENDA REPORT MEETING DATE: May 24, 2016 Council Item TITLE: Designating Fire Lane and Prohibited Parking to Address Traffic and Parking Issues on Palm Ave; Authorization for Removal of Vehicles PRESENTED BY: Yanni Demitri, Public Works Director RECOMMENDATION: 1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA ESTABLISHING FIRE LANES AND PROHIBITING PARKING ON PALM AVENUE AND AUTHORIZING REMOVAL OF VEHICLES THEREON 2. Direct staff to refresh existing red curb on Palm Ave. 3. Direct staff to return within 60 - 90 days with a franchise agreement for towing services. 2030 VISION STATEMENT: This staff report supports Goal #2 "Maintain Public Safety" to ensure that our residents continue to enjoy an outstanding quality of life. BACKGROUND: City Staff and the City Council have been advised by a number of residents of traffic, noise, trespassing and littering issues at the top of Palm Avenue which are mainly caused by visitors looking for a secluded and dimly lit area. Residents In the area are impacted by visitors drinking and leaving litter and prophylactics in the street and scattered along the top of the mountain. The area was designated a fire lane many years ago to insure fire and other life safety equipment could access Palm to insure the proper response time for residents in the area. DISCUSSION: The Council discussed this issue on May 10, 2016 and directed staff to return with a proposal to address the number of issues facing residents on Palm Ave. Palm Ave is located at the east end of the City and is lined with private properties. Residents on this street are experiencing a number of undesirable conditions. People parking in the cul-de-sac on Palm are leaving the top of Palm, riddles with litter potentially hazardous material items. Not all residents are visiting the area and leaving 8 Packet Pg. 216 it a mess, but the area was designated as a fire lane and no one is allowed to park in the cul-de-sac. In response to these complaints staff recommends placing signs pertaining to littering prohibitions. Staff also recommends refreshing the existing red curb and placing of signs notifying that vehicles left standing or parked will be towed. Staff also will seek a Tow Franchise Agreement for immediate removal of all vehicles parked within the area designated as a Fire Lane on Palm Avenue. The Sheriff will be asked to step up enforcement of all existing and new restrictions. Notices shall be sent to residents informing them of the new improvements and the phone number of the Towing Company will be provided. FISCAL IMPACT: Costs for the new signs, refresh red curb, and notices to residents totaling $1,000 will be expended from the FY2015-16 approved Gas Tax budget. Table 1 Fund Account Approved Budget Expended as of May 15, 2016 Available Balance 16-Gas Tax Fund 16-175-257 - Contractual Svcs $85,000 $60,850 $24,150 ATTACHMENTS:  Staff Report Westwood - Palm Issues YD 5-3-16 (DOC)  CC Resolution_limiting parking - palm ave (DOCX) APPROVALS: Yanni Demitri Completed 05/17/2016 4:07 PM Finance Completed 05/18/2016 12:54 PM City Attorney Completed 05/19/2016 2:01 PM City Manager Completed 05/19/2016 5:48 PM City Council Pending 05/24/2016 6:00 PM 8 Packet Pg. 217 AGENDA REPORT MEETING DATE: May 10, 2016 Council Item TITLE: Traffic and Parking Related Issues on Westwood Street, Westwood Lane, and Palm Ave PRESENTED BY: Yanni Demitri, Public Works Director RECOMMENDATION: Authorize City Manager to Implement Recommendations of this Report . 2030 VISION STATEMENT: This staff report supports Goal #2 "Maintain Public Safety" to ensure that our residents continue to enjoy an outstanding quality of life. BACKGROUND: City Staff and the City Council have been advised by a number of residents of traffic, access, noise, trespassing and littering issues along Westwood Street, Westwood Lane, and Palm Avenue that are mainly caused by visitors to Blue Mountain which is in the immediate vicinity of said streets. Grand Terrace residents and non- residents started flocking to Westwood Street after the Palm Avenue and Honey Hill access to Blue Mountain was gated off. DISCUSSION: Westwood Street and Westwood Lane are located at the east end of the City at the base of Blue Mountain, which is comprised mostly of private parcels. Westwood Street dead ends at the base of Blue Mountain and has become an unofficial trailhead to Blue Mountain for various purposes (hiking, biking, etc.), and Westwood Lane is a cul-de-sac street. These two streets are substandard in width. The City’s standard is for a travel way of 36 feet, curb to curb, but neither of these streets meets that minimum width. Street parking is currently allowed on only one side of each street. Residents along these streets are experiencing a number of undesirable conditions due to public access of Blue Mountain. Not all persons parking along the roadways are considerate or courteous. Some will litter along the roadways and some trespass onto private properties. In the early morning hours, residents are awakened by noise from car motors, the slamming of car doors and people talking loudly. 8.a Packet Pg. 218 At t a c h m e n t : S t a f f R e p o r t W e s t w o o d - P a l m I s s u e s Y D 5 - 3 - 1 6 ( 1 9 1 6 : P a l m A v e T o w A w a y Z o n e ) Occasionally, cars parked along these streets block access to mailboxes and the mail carrier does not deliver if the mail vehicle cannot drive up to the mailboxes. Palm Avenue is a long cul-de-sac street that increases in elevation as it travels eastward. Towards the end of the cul-de-sac, there is a steep downhill grade on the north side of the street. The end of Palm Avenue is very dark and very secluded, which is attractive for persons looking for secluded areas to park. In addition to the potential for littering, and questionable activities, there is also a possible safety concern because of the steep downhill grade. In response to these complaints staff will be placing signs pertaining to littering prohibitions. Staff will also paint pavement markings with the speed limit in 300 feet intervals on Palm Ave in the downhill direction to prompt motorists to adhere to the posted speed limit and the Sheriff will be contacted to step up enforcement of all existing and new restriction. Notices shall be sent to residents informing them of the new improvements and the phone numbers of the County Sheriff and Towing Company will be provided. Permit parking will be implemented on Westwood Street, Westwood Lane, and Palm Ave. Two permits will be issued to each property and three additional permits for guests. Staff recommends a fee of $30.00 a year per permit. Staff will also implant new red curbing on all three streets and refresh existing red curb, which will significantly reduce the number of parked vehicles that are contributing to the issues raised by the residents. STAFF RECOMMENDATION Staff recommends implementing the following: 1. Apply red curbing on existing No Parking areas on Westwood Street, Westwood Lane, and on Palm Ave and refresh existing red curb. 2. Implement restricted parking by permit only on Westwood Street, Westwood Lane, and Palm Ave between the hours of 7:30 PM – 6:00 AM. 3. Adopt a resolution designating red curbs in the areas of Westwood Street, Westwood Lane, and Palm Ave as “Tow Away” zones in compliance with Section 22651 of the California Motor Vehicle Code. 4. Direct staff to return within 60 days with a franchise agreement for towing services to service City Tow Away zones. 8.a Packet Pg. 219 At t a c h m e n t : S t a f f R e p o r t W e s t w o o d - P a l m I s s u e s Y D 5 - 3 - 1 6 ( 1 9 1 6 : P a l m A v e T o w A w a y Z o n e ) Paint or Refresh Existing Red Curb Westwood Street and Lane Palm Ave FISCAL IMPACT: An appropriation from the Gas Tax Fund in the amount of $5,000 is needed for new signs, red curb, pavement markings, and notices to residents. 8.a Packet Pg. 220 At t a c h m e n t : S t a f f R e p o r t W e s t w o o d - P a l m I s s u e s Y D 5 - 3 - 1 6 ( 1 9 1 6 : P a l m A v e T o w A w a y Z o n e ) This page left intentionally blank. Page 1 of 3 RESOLUTION 2016 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA ESTABLISHING FIRE LANES AND PROHIBITING PARKING ON PALM AVENUE AND AUTHORIZING REMOVAL OF VEHICLES THEREON WHEREAS, Section 22651(n) of the California Vehicle Code authorizes the removal of vehicle parked or left standing where local authorities, by resolution or ordinance, have prohibited parking and have authorized the removal of vehicles when signs are posted giving notice of removal; and WHEREAS, pursuant to Section 22500.1 of the California Vehicle Code no person shall stop, park, or leave standing any vehicle in any location designated as a fire lane by the fire department, the curb is painted red, and a sign clearly states it is a “Fire Lane”; and WHEREAS, Section 22507 of the California Vehicle Code grants local authorities the authority to prohibit stopping, parking, or standing of vehicles along certain streets, or portions thereof during all or certain hours of the day. WHEREAS, Section 10.04.310 of the Grand Terrace Municipal Code authorizes the City Council, on the basis of a traffic engineering investigation, to prohibit the stopping, standing or parking of vehicles on certain highway at all or on certain hours of the day; and WHEREAS, the City Traffic Engineer has conducted such traffic engineering investigation and confirms and recommends the provisions contained herein; and WHEREAS, the public health, safety, and welfare is promoted by the adoption of the recommendations contained herein; and WHEREAS, substantial evidence supports the adoption of this Resolution. NOW THEREFORE, BE IT RESOLVED THAT CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: Section 1. The City Council finds that all of the above recitals are true and correct and are incorporated herein by reference. 8.b Packet Pg. 221 At t a c h m e n t : C C R e s o l u t i o n _ l i m i t i n g p a r k i n g - p a l m a v e [ R e v i s i o n 1 ] ( 1 9 1 6 : P a l m A v e T o w A w a y Z o n e ) Page 2 of 3 Section 2. That pursuant to California Vehicle Code 22507, the parking, stopping, or standing of vehicles on Palm Avenue north side, from Honey Hill Drive to 23172 Palm Ave, is prohibited. Section 3. That pursuant to California Vehicle Code 22500.1, from 23172 Palm Avenue to terminus is designated a fire lane on both sides of the street. Section 4. That vehicles found parked, stopped, or standing in any area designated herein as a fire lane or as prohibited to parking shall be removed. Section 5. That the City Council directs staff to paint red all curbs located in the areas designated herein as a fire lane and where parking, stopping, or standing of vehicles is prohibited and further directs staff to place the appropriate signs and/or street markings as to give adequate notice that vehicles parked, stopped, or left standing along such areas will be towed. Section 6. That the City Council further directs the City Manager to take such further action as may be required to effectuate the intent stated herein. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 24th day of May, 2016. AYES: NOES: ABSENT: ABSTAIN: ATTEST: __________________________ __________________________ Pat Jacquez-Nares Darcy McNaboe City Clerk Mayor 8.b Packet Pg. 222 At t a c h m e n t : C C R e s o l u t i o n _ l i m i t i n g p a r k i n g - p a l m a v e [ R e v i s i o n 1 ] ( 1 9 1 6 : P a l m A v e T o w A w a y Z o n e ) Page 3 of 3 I, PAT JACQUEZ-NARES, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 24th day of May, 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Pat Jacques-Nares City Clerk 8.b Packet Pg. 223 At t a c h m e n t : C C R e s o l u t i o n _ l i m i t i n g p a r k i n g - p a l m a v e [ R e v i s i o n 1 ] ( 1 9 1 6 : P a l m A v e T o w A w a y Z o n e ) This page left intentionally blank. AGENDA REPORT MEETING DATE: May 24, 2016 Council Item TITLE: Traffic and Parking Issues on Westwood Street and Westwood Lane PRESENTED BY: Yanni Demitri, Public Works Director RECOMMENDATION: Staff recommends implementing the following: 1. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA ESTABLISHING FIRE LANES AND PROHIBITING PARKING ALONG THE SOUTH SIDE OF WESTWOOD STREET AND ON THE EAST SIDE AND THE ENTIRE CUL-DE-SAC OF WESTWOOD LANE AND AUTHORIZING REMOVAL OF VEHICLES THEREON 2. Direct staff to return within 60 - 90 days with a franchise agreement for towing services to service all “Tow Away” zones City-wide. 3. Direct staff to meet with residents on these two streets to discuss remedies to address parking issues and return to Council in 60 - 90 days with details of such plan. 2030 VISION STATEMENT: This staff report supports Goal #2 "Maintain Public Safety" to ensure that our residents continue to enjoy an outstanding quality of life. BACKGROUND: City Staff and the City Council have been advised by a number of residents of traffic, access, noise, trespassing and littering issues along Westwood Street and Westwood Lane that are mainly caused by visitors to Blue Mountain which is in the immediate vicinity of these two streets. Grand Terrace residents and non-residents started flocking to Westwood Street after the Palm Avenue and Honey Hill access to Blue Mountain was gated off. This item was presented to City Council on May 10th, 2016 and several of the residents were in attendance to discuss the issues. Several of them spoke and staff listened and worked diligently to address all the concerns. DISCUSSION: 9 Packet Pg. 224 Westwood Street and Westwood Lane are located at the east end of the City at the base of Blue Mountain. They are comprised mostly of private parcels. Westwood Street dead ends at the base of Blue Mountain and has become an unofficial trailhead to Blue Mountain for various purposes (hiking, biking, etc.), and Westwood Lane is a cul-de-sac street. These two streets are non-standard in width. The City’s standard is for a travel way of 36 feet, curb to curb, but neither of these streets meets that minimum width. Therefore, in order to maintain unimpeded access to emergency service vehicles, including fire trucks, one side of each street has been designated as a fire lane by the local fire authority. The opposite side of the street currently allows for parking. Residents along these streets are experiencing a number of undesirable conditions attributed to access to Blue Mountain. Unfortunately, not all persons parking along the roadways are considerate or courteous. Some will litter and some trespass onto private properties. In the early morning hours, residents are awakened by noise from car motors, the slamming of car doors and people talking loudly. Occasionally, cars parked along these streets block access to mailboxes and the mail carrier does not deliver if access to the mail boxes is obstructed. There is concern that the same behavior would block access to emergency service vehicles in the area. California Vehicle Code Section 22651, authorizes the removal of vehicles parked or left standing where local authorities by resolution or ordinance have prohibited parking and authorized removal. In addition, under California Vehicle Code Section 22500.1 vehicles stopped, parked, or left in a fire lane designated as such by a red curb and a posted sign may be removed. Last, California Vehicle Code Section 22507 authorizes cities to prohibit stopping, parking, or standing of vehicles on certain streets, or portions thereof. Currently one side of Westwood Street and Westwood Lane contains signs prohibiting parking. However, the curbs have not been painted red and signs do not notice that vehicles may be towed. So in response to the complaints staff proposed the Council consider adoption of the attached resolution to clarify the existence and location of fire lanes, that parking is prohibited thereon, and that vehicles parked there will be towed. The resolution further directs staff to paint the appropriate curbs red and to post appropriate signs providing notice that vehicles will be towed. Upon adoption, the Sheriff will be asked to step up patrol of the area and enforcement of all existing and new restrictions. Notices shall be sent to residents informing them of the new improvements and the phone numbers of the County Sheriff and a Towing Company will be provided. FISCAL IMPACT: Costs for the new signs, refresh red curb, and notices to residents totaling $2,000 will be expended from the FY2015-16 approved Gas Tax budget. 9 Packet Pg. 225 Table 1 Fund Account Approved Budget Expended as of May 15, 2016 Available Balance 16-Gas Tax Fund 16-175-257 - Contractual Svcs $85,000 $60,850 $24,150 ATTACHMENTS:  CC Resolution_Westwood Tow Away (DOCX)  Staff Report Westwood - Palm Issues YD 5-3-16 (DOC) APPROVALS: Yanni Demitri Completed 05/19/2016 2:42 PM City Attorney Completed 05/19/2016 3:04 PM Finance Completed 05/19/2016 3:35 PM City Manager Completed 05/19/2016 5:44 PM City Council Pending 05/24/2016 6:00 PM 9 Packet Pg. 226 Page 1 of 4 RESOLUTION 2016 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA ESTABLISHING FIRE LANES AND PROHIBITING PARKING ALONG THE SOUTH SIDE OF WESTWOOD STREET AND ON THE EAST SIDE AND THE ENTIRE CUL-DE-SAC OF WESTWOOD LANE AND AUTHORIZING REMOVAL OF VEHICLES THEREON WHEREAS, Section 22651(n) of the California Vehicle Code authorizes the removal of vehicle parked or left standing where local authorities, by resolution or ordinance, have prohibited parking and have authorized the removal of vehicles when signs are posted giving notice of removal; and WHEREAS, pursuant to Section 22500.1 of the California Vehicle Code no person shall stop, park, or leave standing any vehicle in any location designated as a fire lane by the fire department, the curb is painted red, and a sign clearly states it is a “Fire Lane”; and WHEREAS, Section 22507 of the California Vehicle Code grants local authorities the authority to prohibit stopping, parking, or standing of vehicles along certain streets, or portions thereof. WHEREAS, Section 10.04.310 of the Grand Terrace Municipal Code authorizes the City Council, on the basis of a traffic engineering investigation, to prohibit the stopping, standing or parking of vehicles on certain highway at all or on certain hours of the day; and WHEREAS, the City Traffic Engineer has conducted such traffic engineering investigation and confirms and recommends the provisions contained herein; and WHEREAS, the public health, safety, and welfare is promoted by the adoption of the rrecommendations contained herein; and WHEREAS, substantial evidence supports the adoption of this Resolution. NOW THEREFORE, BE IT RESOLVED THAT CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: Section 1. The City Council finds that all of the above recitals are true and correct and are incorporated herein by reference. 9.a Packet Pg. 227 At t a c h m e n t : C C R e s o l u t i o n _ W e s t w o o d T o w A w a y [ R e v i s i o n 1 ] ( 1 9 1 7 : W e s t w o o d S t r e e t / L a n e T o w A w a y ) Page 2 of 4 Section 2. That pursuant to California Vehicle Code 22500.1, the south side of Westwood Street, from its intersection at Honey Hill Drive to its easterly terminus, is designated a fire lane. Section 3. That pursuant to California Vehicle Code 22507, the parking, stopping, or standing of vehicles on the south side of Westwood Street, from its intersection at Honey Hill Drive to its easterly terminus, is prohibited. Section 4. That pursuant to California Vehicle Code 22500.1, the east side of Westwood Lane, from its intersection at Westwood Street to its terminus as well as the entire cul-de-sac, is a fire lane. Section 5. That pursuant to California Vehicle Code 22507, the parking, stopping, or standing of vehicles on the east side of Westwood Lane, from its intersection at Westwood Street to its terminus as well as the entire cul-de-sac, is prohibited. Section 6. That vehicles found parked, stopped, or standing in any area designated herein as a fire lane or as prohibited to parking shall be removed. Section 7. That the City Council directs staff to paint red all curbs located in the areas designated herein as a fire lane and where parking, stopping, or standing of vehicles is prohibited and further directs staff to place the appropriate signs and/or street markings as to give adequate notice that vehicles parked, stopped, or left standing along such areas will be towed. Section 8. That the City Countil further directs the City Manager to take such further action as may be required to effectuate the intent stated herein. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 24th day of May, 2016. 9.a Packet Pg. 228 At t a c h m e n t : C C R e s o l u t i o n _ W e s t w o o d T o w A w a y [ R e v i s i o n 1 ] ( 1 9 1 7 : W e s t w o o d S t r e e t / L a n e T o w A w a y ) Page 3 of 4 AYES: NOES: ABSENT: ABSTAIN: ATTEST: __________________________ __________________________ Pat Jacquez-Nares Darcy McNaboe City Clerk Mayor 9.a Packet Pg. 229 At t a c h m e n t : C C R e s o l u t i o n _ W e s t w o o d T o w A w a y [ R e v i s i o n 1 ] ( 1 9 1 7 : W e s t w o o d S t r e e t / L a n e T o w A w a y ) Page 4 of 4 I, PAT JACQUEZ-NARES, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 24th day of May, 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Pat Jacques-Nares City Clerk 9.a Packet Pg. 230 At t a c h m e n t : C C R e s o l u t i o n _ W e s t w o o d T o w A w a y [ R e v i s i o n 1 ] ( 1 9 1 7 : W e s t w o o d S t r e e t / L a n e T o w A w a y ) This page left intentionally blank. AGENDA REPORT MEETING DATE: May 10, 2016 Council Item TITLE: Traffic and Parking Related Issues on Westwood Street, Westwood Lane, and Palm Ave PRESENTED BY: Yanni Demitri, Public Works Director RECOMMENDATION: Authorize City Manager to Implement Recommendations of this Report . 2030 VISION STATEMENT: This staff report supports Goal #2 "Maintain Public Safety" to ensure that our residents continue to enjoy an outstanding quality of life. BACKGROUND: City Staff and the City Council have been advised by a number of residents of traffic, access, noise, trespassing and littering issues along Westwood Street, Westwood Lane, and Palm Avenue that are mainly caused by visitors to Blue Mountain which is in the immediate vicinity of said streets. Grand Terrace residents and non- residents started flocking to Westwood Street after the Palm Avenue and Honey Hill access to Blue Mountain was gated off. DISCUSSION: Westwood Street and Westwood Lane are located at the east end of the City at the base of Blue Mountain, which is comprised mostly of private parcels. Westwood Street dead ends at the base of Blue Mountain and has become an unofficial trailhead to Blue Mountain for various purposes (hiking, biking, etc.), and Westwood Lane is a cul-de-sac street. These two streets are substandard in width. The City’s standard is for a travel way of 36 feet, curb to curb, but neither of these streets meets that minimum width. Street parking is currently allowed on only one side of each street. Residents along these streets are experiencing a number of undesirable conditions due to public access of Blue Mountain. Not all persons parking along the roadways are considerate or courteous. Some will litter along the roadways and some trespass onto private properties. In the early morning hours, residents are awakened by noise from car motors, the slamming of car doors and people talking loudly. 9.b Packet Pg. 231 At t a c h m e n t : S t a f f R e p o r t W e s t w o o d - P a l m I s s u e s Y D 5 - 3 - 1 6 ( 1 9 1 7 : W e s t w o o d S t r e e t / L a n e T o w A w a y ) Occasionally, cars parked along these streets block access to mailboxes and the mail carrier does not deliver if the mail vehicle cannot drive up to the mailboxes. Palm Avenue is a long cul-de-sac street that increases in elevation as it travels eastward. Towards the end of the cul-de-sac, there is a steep downhill grade on the north side of the street. The end of Palm Avenue is very dark and very secluded, which is attractive for persons looking for secluded areas to park. In addition to the potential for littering, and questionable activities, there is also a possible safety concern because of the steep downhill grade. In response to these complaints staff will be placing signs pertaining to littering prohibitions. Staff will also paint pavement markings with the speed limit in 300 feet intervals on Palm Ave in the downhill direction to prompt motorists to adhere to the posted speed limit and the Sheriff will be contacted to step up enforcement of all existing and new restriction. Notices shall be sent to residents informing them of the new improvements and the phone numbers of the County Sheriff and Towing Company will be provided. Permit parking will be implemented on Westwood Street, Westwood Lane, and Palm Ave. Two permits will be issued to each property and three additional permits for guests. Staff recommends a fee of $30.00 a year per permit. Staff will also implant new red curbing on all three streets and refresh existing red curb, which will significantly reduce the number of parked vehicles that are contributing to the issues raised by the residents. STAFF RECOMMENDATION Staff recommends implementing the following: 1. Apply red curbing on existing No Parking areas on Westwood Street, Westwood Lane, and on Palm Ave and refresh existing red curb. 2. Implement restricted parking by permit only on Westwood Street, Westwood Lane, and Palm Ave between the hours of 7:30 PM – 6:00 AM. 3. Adopt a resolution designating red curbs in the areas of Westwood Street, Westwood Lane, and Palm Ave as “Tow Away” zones in compliance with Section 22651 of the California Motor Vehicle Code. 4. Direct staff to return within 60 days with a franchise agreement for towing services to service City Tow Away zones. 9.b Packet Pg. 232 At t a c h m e n t : S t a f f R e p o r t W e s t w o o d - P a l m I s s u e s Y D 5 - 3 - 1 6 ( 1 9 1 7 : W e s t w o o d S t r e e t / L a n e T o w A w a y ) Paint or Refresh Existing Red Curb Westwood Street and Lane Palm Ave FISCAL IMPACT: An appropriation from the Gas Tax Fund in the amount of $5,000 is needed for new signs, red curb, pavement markings, and notices to residents. 9.b Packet Pg. 233 At t a c h m e n t : S t a f f R e p o r t W e s t w o o d - P a l m I s s u e s Y D 5 - 3 - 1 6 ( 1 9 1 7 : W e s t w o o d S t r e e t / L a n e T o w A w a y ) This page left intentionally blank. AGENDA REPORT MEETING DATE: May 24, 2016 Council Item TITLE: Encroachments into City Right of Way and Easements by Permanent Structures PRESENTED BY: Yanni Demitri, Public Works Director RECOMMENDATION: 1. Uphold Existing City Policy of Not Allowing Encroachments By Permanent Structures in the Public Right of Way or in Easements 2. Permanent Structures That are Currently in The Right of Way Can Only Be Replaced In-Kind Subject to The Approval of an Encroachment Permit 2030 VISION STATEMENT: This staff report supports Goal # 2 "Maintain Public Safety". BACKGROUND: City Staff has recently been made aware of several situations of unpermitted encroachments into City easements and rights of way (sidewalk and parkway areas). Requests have been made to improve the encroaching structure by making it more permanent or as an alternative seeking approval to replace like with like. The present unpermitted encroachments take the form of a fence, a block wall, and other permanent structures. It is believed that the requesting parties are not the same party who installed the encroaching structures. The standard practice is to NOT allow encroachments into City rights of way or easements and to demand immediate removal upon discovery of such encroachment. This sometimes results in significant expense to the owner of the encroaching structure. With the questions raised we are bringing this item to the Council for discussion and direction regarding City policy for unpermitted encroachments. There is a procedure in place allowing any person to apply for an encroachment permit which provides City full discretion to allow an encroachment if there is a recognizable and reasonable need to access the right of way. However, approval of these permits is typically only issued for temporary construction access or installation of utility infrastructure. If granted, the permittee is required to execute a hold harmless agreement protecting the City from liability. DISCUSSION: 10 Packet Pg. 234 A Right-of-Way is a legal right established by usage or grant to pass over a specific route through grounds or property belonging to another. There need be no specific purpose for the access. For our purposes most streets, curbs, gutters, sidewalks, and parkways are considered a public right of way. The size and configuration of the right- of-way vary from street to street. Rights-of-way are generally used for the public movement of vehicles, pedestrians and goods. An Easement is the right to cross over or otherwise use someone else’s property for a specified purpose. The most common easements include access, sewer, ingress and egress, utility, parking, etc. Easements, such as a sewer or other utility easement can contain important and/or sensitive infrastructure or can be reserved for future expansion of existing system. A sewer easement typically contains sewer mainlines of varying sizes, but usually 8 inches in diameter. It is common practice for Cities to require all new developments to dedicate to the City an easement for a public right of way if none exists. As a result of this practice over the years, the City has gained possession of easements which typically run 10 feet from the street over the property. As a result, the City has a right of way easement on both sides of almost every street. If for any reason a City decides it does not need an easement, it can vacate it and the owner of the real property thereunder would regain full control of the area vacated. These easements are held by the City for many purposes. In the present they allow for public movement, sidewalks, curb and gutter, drainage, planning purposes, and frequently overlay underground utility infrastructure. They are also held for future development. In the event a residential or commercial development increases density over the next 50, 100, 200 years the City has the ability to widen streets. By reserving these easements now the city preserves its ability to adjust to meet unknown future needs. Most cities do not allow construction within the public right of way or public easements. In the event there exists a good reason to construct in the right of way or public easement, the City has a process for applying for an encroachment permit. An important part of the permit process is the requirement that the permittee execute a hold harmless agreement which helps reduce potential liability to the City resulting from the encroachment. Without the permit, the city does not have any such protection and liability may actually be increased. Even with a hold harmless, there is no perfect protection as the protection only runs to the extent the encroaching party, or their insurance, can pay to defend the City and the City is often viewed as the “deep pockets” and blamed for negligent supervision or repair of the right of way despite. Typically permits are issued to allow temporary access for development of private properties or to install utility infrastructure. However, it is unusual to allow a permanent encroachment which is not a utility. In addition to the problems this can cause for potential future expansions of the streets, any infrastructure beneath the easement, such as gas, electric, or sewer utility lines, may be damaged by the construction 10 Packet Pg. 235 footings of the encroaching structure or be made difficult to access for repair and maintenance. A permanent encroachment could also potentially hinder the City’s ability to maintain streets, curb, or gutters to the extent access is hindered. Such repair and maintenance is an important aspect of the City’s protection from liability. Within City rights-of-way there are many reasons to not allow permanent structures to encroach. In fact it is current policy that any encroachment into the public right of way requires a permit and anything constructed without such permit must be removed or a permit acquired. Permits are most typically issued to utilities or property owners installing utilities to their property through the right-of-way. It is uncommon to allow a permanent encroachment for something like a fence or block wall which could be constructed within the property line. However, if we do not require removal, then not allowing maintenance and repair of an existing encroaching structure may increase the City’s liability for damage resulting from such structure because the City is responsible for maintenance and repair of the city right-of-way. STAFF RECOMMENDATION Staff recommends that City Council uphold the existing City policy of not allowing any unpermitted encroachments onto City easements or City Right-of-Way and to discuss policy and provide direction regarding enforcement in regards to existing unpermitted encroachments for which the owner seeks repair and maintenance. FISCAL IMPACT: None at this time ATTACHMENTS:  Reso Encroachments Revised 5-17-2016 (DOCX) APPROVALS: Yanni Demitri Completed 05/19/2016 2:56 PM Finance Completed 05/19/2016 3:34 PM City Attorney Completed 05/19/2016 5:01 PM City Manager Completed 05/18/2016 7:51 PM City Council Pending 05/24/2016 6:00 PM 10 Packet Pg. 236 This page left intentionally blank. Page 1 of 3 RESOLUTION 2016 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING A POLICY NOT TO ALLOW ENCROACHMENTS BY PERMANENT STRUCTURES ONTO EASEMENTS OR CITY RIGHTS-OF-WAY WHEREAS, Rights-of-Way are City properties to be utilized for the benefit and good of the general public; and WHEREAS, Easements are parcels of land dedicated to the City for the purposes of access to utility lines or other traffic access by the public and emergency vehicles; and WHEREAS, The encroachment onto easements or City rights-of-way by the erections of permanent structures would impede City’s ability to access utility lines or restrict traffic access. WHEREAS, The encroachment onto easements or City rights-of-way by the erections of permanent structures poses legal liability to the City as well as potential cost to remove and replace said structures to perform routine maintenance. NOW THEREFORE, BE IT RESOLVED THAT CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: Section 1. The City Council finds that all of the above recitals are true and correct and are incorporated herein by reference. Section 2. The City Council upholds the existing policy to not allow encroachments by permanent structures onto easement or rights-of-way. Section 3. The City Council requires permanent structures that are currently in the public right-of-way or easements to be replaced only in-kind; subject to the approval of an encroachment permit. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 24th day of May, 2016. 10.a Packet Pg. 237 At t a c h m e n t : R e s o E n c r o a c h m e n t s R e v i s e d 5 - 1 7 - 2 0 1 6 ( 1 9 1 2 : E n c r o a c h m e n t b y P e r m a n e n t S t r u c t u r e s ) Page 2 of 3 AYES: NOES: ABSENT: ABSTAIN: ATTEST: __________________________ __________________________ Pat Jacquez-Nares Darcy McNaboe City Clerk Mayor 10.a Packet Pg. 238 At t a c h m e n t : R e s o E n c r o a c h m e n t s R e v i s e d 5 - 1 7 - 2 0 1 6 ( 1 9 1 2 : E n c r o a c h m e n t b y P e r m a n e n t S t r u c t u r e s ) Page 3 of 3 I, PAT JACQUEZ-NARES, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 10th day of May, 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Pat Jacques-Nares City Clerk 10.a Packet Pg. 239 At t a c h m e n t : R e s o E n c r o a c h m e n t s R e v i s e d 5 - 1 7 - 2 0 1 6 ( 1 9 1 2 : E n c r o a c h m e n t b y P e r m a n e n t S t r u c t u r e s ) This page left intentionally blank. AGENDA REPORT MEETING DATE: May 24, 2016 Council & Successor Agency Item TITLE: Results of Budget in the Park Workshops PRESENTED BY: Cynthia Fortune, Finance Director RECOMMENDATION: Received and file the results of the “Budget in the Park” workshops held on May 17th and May 19th, 2016. 2030 VISION STATEMENT: This staff report supports two Goals: City Council Goal #1 “Ensure our Fiscal Viability” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations. City Council Goal #2 “Engage in Proactive Communication” by actively engaging the community in participating in the City’s annual budget process. BACKGROUND: The Proposed Budget for Fiscal Year (FY) 2016-17 Calendar introduced to City Council during the mid-year review in March included two (2) Budget in the Park workshops for the community. The purpose of these workshops was to:  inform the community about the City’s budget process;  provide detailed information on each City department;  involve the community in participating in the budget process; and  seek information from the community regarding the prioritization of services the City provides its residents. DISCUSSION: During the workshops, each City department provided detailed information on the services they provided the community and the total department cost in providing such services. The following tables show the Department and services that the community was asked to prioritize. 11 Packet Pg. 240 CITY COUNCIL General Fund Budget: $60,878 CITY MANAGER General Fund Budget: $401,719 1. Conduct Public Meetings 1. City Administration 2. Represent Community’s Point of View 2. Oversight of Resources 3. Establish Priorities for the City 3. Successor Agency Executive Director 4. Provide Policy Direction 4. Human Resources/Risk Management 5. Allocate Resources/Budget 5. Purchasing Agent 6. Implement Successful Partnerships 6. Senior Citizens Program 7. Act as Successor Agency Board 7. Emergency Operations Committee 8. Representative for Regional Affairs 8. Economic Development 9. Collaborate with other local governments CITY CLERK General Fund Budget: $218,398 CITY ATTORNEY General Fund Budget: $64,000 1. Maintain record of Council Meetings 1. Provide Legal Services 2. Conduct Local Elections 2. Legal Advisor at Council Meetings 3. Oversee Communication Services 3. Legal Advisor for Successor Agency 4. Records Management 4. Contract Review 5. Support Council and City Manager 5. Draft Ordinances and Resolutions 6. Oversee City Information Technology 7. Manage information on Channel 3 FINANCE General Fund Budget: $501,035 CHILD CARE Child Care Fund Budget: $1,210,984 1. Preparation of City Budget 1. Provide quality care for preschool children 2. Budget Monitoring 2. Provide before and after school care 3. Accounts Payable 3. Offer 3-hour play dates, learning sessions (Tiny Tots Program) 4. Payroll 5. City Investments 6. Annual Audits 7. Special Funds Administration 8. Administer City’s Community Benefits Fund 9. Issue Business Licenses 11 Packet Pg. 241 PLANNING & DEVELOPMENT SVCS Planning/Building & Safety General Fund Budget: $362,778 PLANNING & DEVELOPMENT SVCS Code Enforcement General Fund Budget: $264,852 1. Process Development Applications 1. Business License Administration 2. Enforce State and Local Land Use Laws 2. Respond to Code inquiries 3. General Plan Administration 3. Rental Inspection Program 4. Staff to Planning Commission 4. Animal Control complaints 5. Administer Zoning Ordinance 5. Animal Control Licensing 6. Street Sweeping Traffic Enforcement 7. Investigation of Graffiti Abatement 8. Investigate loss of control of City property PUBLIC WORKS Engineering General Fund Budget: $341,104 PUBLIC WORKS Maintenance General Fund Budget: $280,676 1. Street Capital Improvements 1. Streets and Pot-hole Repair 2. Parks Capital Improvements 2. Debris Removal 3. Pavement Management Design 3. Street Light Repair 4. Traffic Control measures 4. Traffic Signal Maintenance 5. Land Development 5. Maintenance of Public Buildings 6. Public Right-of-Way Improvements 6. Parks Maintenance 7. Coordination with Regional Government Coalitions 7. Storm Drain Maintenance 8. Senior Bus Program 8. Side Walk Repair 9. Tree Maintenance SHERIFF’S DEPARTMENT General Fund Budget: $1,676,200 FIRE DEPARTMENT (Tax Assessment: $810,000) 1. Maintain presence to reduce criminal activity 1. Timely response to emergencies 2. Respond to requests for public safety services 2. Emergency Medical Services 3. Receive and address citizens’ concerns 3. Rescue Operations 4. Crime Prevention and Public Awareness 4. Public Education 5. Deploy technology to increase community safety 5. Fire Inspections 6. Partner with community to insure safe 6. Arson Investigations 11 Packet Pg. 242 neighborhoods 7. Insure observance of motor vehicle laws 7. Annual Weed Abatement 8. Proactive engagement with the community 8. Respond to Hazardous Waste incidents Results of the survey completed by residents will be presented to City Council in the power point presentation on May 24, 2016. FISCAL IMPACT: There is no fiscal impact to receiving and filing this report. APPROVALS: Cynthia Fortune Completed 05/19/2016 2:18 PM Finance Completed 05/19/2016 2:19 PM City Attorney Completed 05/19/2016 3:04 PM City Manager Completed 05/19/2016 3:30 PM City Council Pending 05/24/2016 6:00 PM 11 Packet Pg. 243 AGENDA REPORT MEETING DATE: May 24, 2016 Council Item TITLE: Continuation of Twenty-Third Amendment to Law Enforcement Services Contract No. 94-797 With County of San Bernardino PRESENTED BY: Cynthia Fortune, Finance Director RECOMMENDATION: Approve Twenty-Third Amendment to Law Enforcement Services Contract No. 94-797 with County of San Bernardino and authorize the Mayor to execute the Agreement. 2030 VISION STATEMENT: This staff report supports Goal #1, “Ensuring Our Fiscal Viability,” through the continuous monitoring of expenditure budgets, allocations, and operational costs. This staff report also supports Goal #2, “Maintain Public Safety,” by ensuring adequate staff levels for police services for our Community. BACKGROUND: Since incorporation, the City has contracted with the County of San Bernardino for law enforcement services provided through the San Bernardino County Sheriff's Department. Each fiscal year, cities which contract for law enforcement services are required to approve a contract amendment that specifies the level of services for the year (Schedule "A" - pages 3 & 4 of Attachment “A”), which is then approved by the County Board of Supervisors. DISCUSSION: The City Council of the City of Grand Terrace is anticipated to adopt its FY 2016/2017 budget by June 28, 2016. The Twenty-third Amendment to this Agreement (FY 2016/2017) updates the cost of law enforcement services that will be provided in FY 2016/2017 by a proposed 2.0% increase. As stated in the original 94-797 contract, law enforcement duties to the city shall include: enforcement of state statutes; enforcement of city ordinances; traffic enforcement; specialized enforcement such as arson, homicide, juvenile, and narcotics enforcement; and attendance at City meetings. 12 Packet Pg. 244 These services shall be provided by the County personnel as specified in the attached Schedule “A.” The City will retain the FY 2015/2016 staffing level and hours worked by Sheriff staff; 20 hours per week for detective/corporal (1,040 hours per year) and 208 hours per week for the deputy sheriff position (10,816 hours per year). All other terms and conditions of the contract will remain the same as stated therein. The below summarizes the annual hours per position. Table 1 Personnel Level of Service Hours Per Week Annual Hours Lieutenant 0.21 8.5 442.0 Sergeant 0.90 36.0 1,872.0 Detective 0.56 20.0 1,040.0 Deputy Sheriff 5.76 208.0 10,816.0 Professional Staff 1.40 56.0 2,912.0 TOTAL 8.83 328.5 17,082.0 FISCAL IMPACT: The Twenty-third Amendment to the Agreement for law enforcement services is a contractual obligation of $1,709,111 for FY2016-17, primarily of the General Fund. The state budget for this fiscal year maintains Supplemental Law Enforcement Services Fund/Community-Oriented Policing Services (SLESF/COPS) funding for local government, which is $100,000 for Grand Terrace. Although the total contract amount of $1,709,111 submitted by the Sheriff’s Department only represents a 2% increase from the current year’s amount of $1,676,200, the City’s FY2016-17 will include a 4% increase in the proposed budget for law enforcement. The Sheriff’s Department has informed us that they are still in negotiations with several of the public safety unions and recommends the City exercise prudence should the agreements of these negotiations result in salary increases. The proposed budget for law enforcement for FY2016-17 will total $1,743,250 (4% more than the current FY2015-16 budget of $1,676,200). ATTACHMENTS:  Law Enforcement 23rd Amendment (PDF) APPROVALS: Cynthia Fortune Completed 05/18/2016 5:05 PM City Attorney Completed 05/18/2016 6:30 PM 12 Packet Pg. 245 Finance Completed 05/19/2016 9:14 AM City Manager Completed 05/19/2016 1:36 PM City Council Pending 05/24/2016 6:00 PM 12 Packet Pg. 246 This page left intentionally blank. .. ~ FOR COUNTY USE ONLY lD New FAS Vendor Code Dept. Contract Number ~ ChanQe SC A ~ ~ERNARDINO n Cancel SHC 94-797 A-23 ePro Vendor Number ePro Contract Number l COUNTY County Department Dept. Contractor's License No. v Orgn. Sheriff/Coroner/Public Administrator SHC SHC County Department Contract Representative Telephone Total Contract Amount F AS Samuel Fisk, Captain (909)387-3637 $1,709,111 ST AN OARD CONTRACT 15<1 IRevenue n Contract Type n Encumbered n Unencumbered Other: If not encumbered or revenue contract tvoe, orovide reason: 1 Commodity Code I Contract Start Date Contract End Date Original Amount Amendment Amount 07/01/16 06/30/17 $ $1,709,111 Fund Dept. Organization Appr. Obj/Rev Source GRC/PROJ/JOB No Amount AAA SHC SHC 9565 GRANDT $ 1,709,111 I I Fund Dept. Organization Appr. Obj/Rev Source GRC/PROJ/JOB No. Amount $ I I Fund Dept. Organization Appr. Obj/Rev Source GRC/PROJ/JOB No. Amount $ I I Project Name Estimated Payment Total by Fiscal Year FY Amount l/D FY Amount l/D Contract Law Enforcement --2016-17 -- THIS CONTRACT is entered into in the State of California by and between the County of San Bernardino, hereinafter called the County, and Name City of Grand Terrace herei nafter called CITY ~~~~~~~~~~~~~~~~-Address 22795 Barton Road Grand Terrace, CA 92313-5207 Telephone Federal ID No. or Social Security No. (909) 824 -6621 IT IS HEREBY AGREED AS FOLLOWS: (Use space below and additional bond sheets. Set forth service to be rendered, amount to be paid, manner of payment, time for performance or completion, determination of satisfactory performance and cause for termination, other terms and conditions, and attach plans, specifications, and addenda, if any.) AMENDMENT NO . 23 Co ntract No. 94-797 to provide law enforcement service to the City of Grand Terrace is hereby amended, effective July 1, 2016 by rep lacing Schedule A referred to in Paragraph IV, with the Schedule A attached hereto and incorporated herein by reference. Except as amended, all other terms and conditions of this contract remain as stated therein. Auditor-Controller/Treasurer/Tax Collector Use Only D Contract Database D FAS Input Date I Keyed By Page 1 of 4 12.a Packet Pg. 247 At t a c h m e n t : L a w E n f o r c e m e n t 2 3 r d A m e n d m e n t ( 1 9 1 8 : T w e n t y - T h i r d A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t w i t h C o u n t y o f S a n [With the exception of signatures, this page is intentionally left blank]. COUNTY OF SAN BERNARDINO James Ramos, Chairman, Board of Supervisors Dated : ~~~~~~~~~~~~~~~~~- SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD Laura H. Welch Clerk of the Board of Supervisors of the County of San Bernardino Deputy City of Grand Terrace (Print or type name of corporation, company, contractor, etc.) By ..,.. ~~~-(-A-ut-h-or_a_e_d-s1-gn-a-tu-~-e---s1-gn~m-b-lu_e_m_k_)~~~ (Print or type name of person signing contract) Title (Print or Type} Address 22795 Barton Road Grand Terrace, CA 92313-5207 Approved as to Legal Form Reviewed by Contract Compliance Presented to BOS for Signature Michelle D. Blakemore, Chief Asst. County Counsel Revised 05/04/2015 Samuel Fisk, Captain Page 2 of 4 12.a Packet Pg. 248 At t a c h m e n t : L a w E n f o r c e m e n t 2 3 r d A m e n d m e n t ( 1 9 1 8 : T w e n t y - T h i r d A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t w i t h C o u n t y o f S a n . . . ... SCHEDULE A Law Enforcement Services Contract City of Grand Terrace 2016-17 Rollover LEVEL OF SERVICE 0.21 -Lieutenant 0.90 -Sergeant 0.56 -Detective/Corporal (20 hours per week) 5.76 -Deputy Sheriff (208 hours per week) 1.26 -Office Specialist 0.14 -Motor Pool Services A5sistant 3.00 -Marked Unit 1.00 -Unmarked Unit 1.00 -Citizen Patrol Dispatch Services 7.00 -HTs (Amortized over 7-years) 7.00 -HTs (Access & Maint Only) 7.00 -Taser Replacement (Amortized over 4-years) Administrative Support Office Automation Services & Supplies Vehicle Insurance Personnel Liability & Bonding Workers' Comp Experience Modification County Administrative Cost TOTAL COST: Monthly Payment Schedule 1st payment due July 15, 2016: 2nd through 1ih payments due the 5th of each month: FY 2016-17 COST 52,702 1 193,925 1 101 , 191 1 946,028 1 86,678 1 9,831 1 40,035 2 7, 135 2 1,378 3 84,989 1 3,374 4,452 2,296 6,829 14, 163 11,376 22,094 40,856 8,894 70,885 $ 1,709,111 1 $142,436 $142,425 1 Personnel costs include salary and benefits and are subject to change by Board of Supervisors' action. Changes in salary and benefit costs will be billed to the City on a quarterly im.oice. 2 Vehicle costs do not include fuel and maintenance. The City is responsible for fuel , repair and maintenance of all contract vehicles, including collision damage. All fuel , repair and maintenance costs incurred by the County will be billed to the City on a quarterly in\.Oice. 3 No replacement cost is included for grant funded or donated vehicles . Revised 05/04/2015 Page 3 of 4 12.a Packet Pg. 249 At t a c h m e n t : L a w E n f o r c e m e n t 2 3 r d A m e n d m e n t ( 1 9 1 8 : T w e n t y - T h i r d A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t w i t h C o u n t y o f S a n • 1 • " Additional Costs Billed Quarterly: SCHEDULE A Law Enforcement Services Contract City of Grand Terrace 2016-17 The City will be billed on a quarterly basis for the following items: • Increases to salaries and benefits resulting from Board of Supervisors-approved changes to Memorandums of Understanding with the County's various employee organizations. • Actual overtime cost. • Actual on-call cost (on call pay for safety employees for 2016-17 is $185 per week). • Actual cost of vehicle fuel, repair and maintenance, including the cost of collision repair. • Professional services from private vendors and other services, supplies and personnel costs above the contract formula. LEVEL OF SERVICE SUMMARY SAFETY: GENERAL: Lieutenant 0.21 Office Specialist 1.26 Sergeant 0.90 Motor Pool Services Asst 0.14 Detecti\€/Corporal 0.56 Dispatchers 0.94 Deputy Sheriff 5.76 2.34 7.43 VEHICLES: DONATED VEHICLES: Marked Patrol Units 3 Radar Trailer 1 * Unmarked Units Code 3 1 * Citizen Patrol Donated Vehicles-Ins Only 1 * 6 * (Included for insurance costs only) Revised 05/04/2015 Page 4 of 4 12.a Packet Pg. 250 At t a c h m e n t : L a w E n f o r c e m e n t 2 3 r d A m e n d m e n t ( 1 9 1 8 : T w e n t y - T h i r d A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t w i t h C o u n t y o f S a n AGENDA REPORT MEETING DATE: May 24, 2016 Council Item TITLE: Summer Swim Program PRESENTED BY: G. Harold Duffey, City Manager RECOMMENDATION: 1. Authorize the City Manager to use up to $16,000 in 2014-15 fund balance for the 2016 Summer Swim Program. The funds were originally earmarked for a Business Incubator Program; and 2. Approve Contract (Attachment IV) with Boys and Girls Club of Greater Redlands-Riverside to operate the City of Grand Terrace’s 2016 Summer Swim Program in the amount not to exceed $16,000; and 3. Direct the City Manager to submit joint use agreement with the Colton Joint Unified School District Board (CJUSD) for use of the Grand Terrace High School Pool for the City’s 2016 Summer Swim Program and return after CJUSD Board approval to the City Council for ratification of agreement. 2030 VISION STATEMENT: This staff report supports Goal #4 to develop and implement successful partnerships by working collaboratively with community groups to facilitate the delivery of services benefitting youth, seniors and our community. BACKGROUND Over the past six months, City staff and Colton Joint Unified School District (CJUSD) staff discussed re-establishing the Joint Use Agreement between the City and CJUSD, which lapsed July 1, 2014. City staff developed a strategy and was preparing to call a meeting with the sports leagues and other community groups. City staff was also working on a summer swim program to be held at Terrace Hills Middle School. However, due to the change in staff at CJUSD, it is unlikely that the pool can be repaired and be in good working condition by summer. However, the Superintendent offered the pool at Grand Terrace High School as a one year site for the City’s Summer Swim Program. DISCUSSION On October 27, 2015 the City Council approved Quality of Life Enhancement and Preservation projects (QLEAP) in the amount of $477,000. The QLEAP projects were funded from unused 2014-15 funds (fund balance). The staff presented 17 programs to the Council (Attachment 1) to enhance the quality of life of residents of Grand Terrace 13 Packet Pg. 251 by using the fund balance for one time programs. Eleven of the seventeen programs were implemented or are underway. In order for the City to support the Summer Swim Program, staff is recommending Council shift QLEAP program funding of $16,000 from the Business Incubator Program to the 2016 Summer Swim Program. The additional resources needed to support the program will be supported by fees of $7.00 (individual) for a six week season pass or a $25.00 family (two adults and up to 4 children) fee. Additional fees will be charged for lessons. The Summer Swim Program will be operated by the Boys and Girls Club of Greater Redlands-Riverside. Their proposal (Attachment II) includes programming for seniors, youth and families. The proposal costs are based on hours for staff. The final menu of programs and specific hours of those programs will be finalized with City staff. CJUSD Board will only meet once in June, so staff is requesting the Council authorize the City Manager to submit a joint use agreement to CJUSD Board for the use of Grand Terrace High School Pool and upon their approval bring the item back to the Council for ratification (sample/previous agreement-Attachment III). FISCAL IMPACT: City staff estimates the program will cost approximately $20,000 to implement. Staff is estimating that a minimum of $4,000 (season passes and lesson fees) will be generated from fees and charges. The program will not create any additional impact to the general fund as the program will be funded from 2014-15 fund balance already appropriated in the QLEAP program. ATTACHMENTS:  Attachment I - 17 Programs (PDF)  Attachment II - Boys & Girls Club Summer Swim Program Proposal(PDF)  Attachment III - 2014-27 Colton Joint Unified School District - Jt Use Agr Amendment (PDF)  Attachement IV - Agreement - Boys & Girls Club Summer Swim Program (PDF) APPROVALS: G. Harold Harold Duffey Completed 05/19/2016 4:16 PM City Attorney Completed 05/19/2016 8:46 PM Finance Completed 05/19/2016 4:55 PM City Manager Completed 05/19/2016 8:00 PM City Council Pending 05/24/2016 6:00 PM 13 Packet Pg. 252 13.a Packet Pg. 253 At t a c h m e n t : A t t a c h m e n t I - 1 7 P r o g r a m s ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) This page left intentionally blank. 13.b Packet Pg. 254 At t a c h m e n t : A t t a c h m e n t I I - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m P r o p o s a l ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.b Packet Pg. 255 At t a c h m e n t : A t t a c h m e n t I I - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m P r o p o s a l ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.b Packet Pg. 256 At t a c h m e n t : A t t a c h m e n t I I - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m P r o p o s a l ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.b Packet Pg. 257 At t a c h m e n t : A t t a c h m e n t I I - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m P r o p o s a l ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.b Packet Pg. 258 At t a c h m e n t : A t t a c h m e n t I I - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m P r o p o s a l ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.b Packet Pg. 259 At t a c h m e n t : A t t a c h m e n t I I - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m P r o p o s a l ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.b Packet Pg. 260 At t a c h m e n t : A t t a c h m e n t I I - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m P r o p o s a l ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.b Packet Pg. 261 At t a c h m e n t : A t t a c h m e n t I I - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m P r o p o s a l ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 262 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 263 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 264 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 265 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 266 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 267 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 268 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 269 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 270 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 271 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 272 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 273 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 274 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) PAGE INTENTIONALLY LEFT BLANK 13.c Packet Pg. 275 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 276 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 277 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 278 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 279 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 280 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 281 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.c Packet Pg. 282 At t a c h m e n t : A t t a c h m e n t I I I - 2 0 1 4 - 2 7 C o l t o n J o i n t U n i f i e d S c h o o l D i s t r i c t - J t U s e A g r A m e n d m e n t ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) This page left intentionally blank. Page 1 of 11 AGREEMENT FOR CONSULTANT SERVICES THIS AGREEMENT ("Agreement") is made as of this 24th day of May,2015 by and between the CITY OF GRAND TERRACE ("City") and Boys & Girls Club of Greater Redlands - Riverside ("Consultant"). 1.CONSULTANT'S SERVICES. Consultant agrees to perform during the term of this Agreement, the tasks, obligations, and services set forth in the "Scope of Services" attached to and incorporated into this Agreement as Exhibit A (the "Services"). 2.TERM OF AGREEMENT. The tern of this Agreement shall be from the effective date pursuant to Paragraph "38" of this Agreement and shall end on Friday, July 29, 2016 or when the work is satisfactorily completed, whichever occurs first, unless extended by a supplemental agreement. 3.FAMILIARITY WITH WORK. By execution of this Agreement, Consultant warrants that (1) It has thoroughly investigated and considered the work to be performed,based on all available information. (2) It carefully considered how the work should be preformed,and (3) It fully understands the difficulties and restrictions attending the performance of the work under this Agreement. (4) It has the professional and technical competency to perform the work and the production capacity to complete the work in a timely manner with respect to the schedule included in the scope of services. 4.PAYMENT FOR SERVICES. City shall pay for the services performed by Consultant pursuant to the terms of this Agreement, the compensation set forth in the "Schedule of Compensation" attached to and incorporated into this Agreement as Exhibit B. The fees for services shall not exceed the authorized amount of $16,000 as set forth in Exhibit "A," unless the CITY has given specific advance approval in writing. 5.TIME FOR PERFORMANCE. Consultant shall not perform any work under this Agreement until (a) Consultant furnishes proof of insurance as required under Paragraph "8" of this Agreement. All services required by Consultant under this Agreement shall be completed on or before the end of the term of the Agreement. 13.d Packet Pg. 283 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) Page 2 of 11 6.DESIGNATED REPRESENTATIVE. Consultant hereby designates __________ as the Consultant Representative, and said Representative shall be responsible for job performance, negotiations, contractual matters, and coordination with the City. Consultant's professional services shall be actually performed by, or shall be immediately supervised by, the Consultant Representative. 7. HOLD HARMLESS; INDEMNIFICATION. Consultant hereby agrees to protect, indemnify and hold City and its employees, officers and servants free and harmless from any and all losses, claims, liens, demands and causes of action of every kind and character including, but not limited to, the amounts of judgment, interests, court costs, legal fees and other expenses incurred by the City arising in favor of any party, including claims, liens, debts, personal injuries, including employees of the City, death or damages to property (including property of the City) and without limitation by enumeration, all other claims or demands of every character occurring or arising directly out of the negligent acts, recklessness or willful misconduct of Consultant in the performance of its services under this Agreement. This provision is not intended to create any cause of action in favor of any third party against Consultant, or the City or to enlarge in any way the Consultant's liability but is intended solely to provide for indemnification of the City for liability for damages or injuries to third persons or property arising from Consultant's negligent performance hereunder. 8.INSURANCE. Consultant shall procure and maintain at all times during the term of this Agreement insurance as set forth in Exhibit "C" attached hereto. Proof of insurance shall consist of a Certificate of Insurance provided on IOS-CGL form No. CG 0001 II 85 or 88 executed by Consultant's insurer and in a form approved by, the City's City Attorney and City's Legal Counsel. 9. LICENSES, PERMITS, AND FEES. Consultant shall obtain a City of Grand Terrace Business License and any and all other permits and licenses required for the services to be performed under this Agreement. 10. INDEPENDENT CONTRACTOR STATUS. City and Consultant agree that Consultant, in performing the Services herein specified, shall act as an independent Contractor and shall have control of all work and the manner in which it is performed. Consultant shall be free to contract for similar services to be performed for other entities while under contract with City. Consultant is not an agent or employee of City, and is not entitled to participate in any pension plan, insurance, bonus or similar benefits City provides for its employees. Consultant shall be responsible to pay and hold City harmless from any and all payroll and other taxes and interest thereon and penalties, therefore, which may become due as a result of services performed hereunder. 11.ASSIGNMENT. This Agreement is for the specific services with Consultant as set forth herein. Any attempt by Consultant to assign the benefits or burdens of this Agreement without written approval of City is prohibited and shall be null and 13.d Packet Pg. 284 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) Page 3 of 11 void; except that Consultant may assign payments due under this Agreement to a financial institution. 12.STANDARD. Consultant agrees that the services to be rendered pursuant to this Agreement shall be performed in accordance with the standards customarily provided by an experienced and competent professional organization rendering the same or similar services. Consultant shall re-perform any of said services, which are not in conformity with standards as determined by the City. 13.CONFIDENTIALITY. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this Section shall survive the termination of this Agreement. 14.RECORDS AND INSPECTIONS. Consultant shall maintain full and accurate records with respect to all services and matters covered under this Agreement. City shall have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcripts therefrom, and to inspect all program data, documents, proceedings and activities. Consultant shall maintain an up-to-date list of key personnel and telephone numbers for emergency contact after normal business hours. 15.OWNERSHIP OF CONSULTANT'S WORK PRODUCT. All reports, documents, all analysis, computations, plans, correspondence, data, information, computer media, including disks or other written material developed and/or gathered by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Such Material shall not be the subject of a copyright application by Consultant. Any re-use by City of any such materials on any project other than the project for which they were prepared shall be at the sole risk of City unless City compensate Consultant for such use. Such work product shall be transmitted to City within ten (10) days after a written request therefore. Consultant may retain copies of such products. 16.NOTICES. All notices given or required to be given pursuant to this Agreement shall be in writing and may be given by personal delivery or by mail. Notice sent by mail shall be addressed as follows: City:G. Harold Duffey,City Manager City of Grand Terrace 22795 Barton Road Grand Terrace, Ca 92313 13.d Packet Pg. 285 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) Page 4 of 11 Consultant:Boys & Girls clubs of Greater Redlands-Riverside 1251 Clay Street Redlands, CA 92374 If the name of the principal representative designated to receive the notices, demands or communications, or the address of such person, is changed, written notice shall be given within five (5) working days of said changes 17.TAXPAYER IDENTIFICATION NUMBER. Consultant shall provide City with a complete Request for Taxpayer Identification Number and Certification, Form W - 9, as issued by the Internal Revenue Service. 18.APPLICABLE LAWS, CODES AND REGULATIONS. Consultant shall perform all services described in accordance with all applicable laws, codes and regulations required by all authorities having jurisdiction over the Services. Consultant agrees to comply with prevailing wage requirements as specified in the California Labor Code,Sections 1770, et seq. 19. RIGHT TO UTILIZE OTHERS. City reserves the right to utilize others to perform work similar to the Services provided hereunder. 20. BENEFITS. Consultant will not be eligible for any paid benefits for federal , social security, state workers' compensation, unemployment insurance, professional insurance, medical/dental, retirement PERS or fringe benefits offered by the City of Grand Terrace. 21.PERS ELIGIBILITY INDEMNITY. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System ("PERS") to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits. 13.d Packet Pg. 286 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) Page 5 of 11 22.TRAVEL EXPENSES. Any reimbursement expenses must be pre-authorized and shall be based upon the approved rates of the San Bernardino County Auditor- Controller. 23.CONFLICT OF INTEREST. Consultant agrees that any conflict or potential conflict of interest shall be fully disclosed prior to execution of contract and Consultant shall comply with all applicable federal, state and county laws and regulations governing conflict of interest. 24. ECONOMIC INTEREST STATEMENT. Consultant hereby acknowledges that pursuant to Government Code Section 87300 and the Conflict of Interest Code adopted by City hereunder, Consultant is designated in said Conflict of Interest Code and is therefore required to file an Economic Interest Statement (Form 700) with the City Clerk, for each employee providing advise under this Agreement, prior to the commencement of work. 25.POLITICAL ACTIVITY/LOBBYING CERTIFICATION. Consultant may not conduct any activity, including any payment to any person, officer, or employee of any governmental agency or body or member of Congress in connection with the awarding of any federal contract, grant, loan, intended to influence legislation, administrative rulemaking or the election of candidates for public office during time compensated under the representation that such activity is being performed as a part of this Agreement. 26.NON-DISCRIMINATION. In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, creed, religion, sex, marital status, national origin, ancestry, age physical or mental handicap, medical condition, or sexual orientation. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment,without regard to their race, color, creed, religion,sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation. 27.AUDIT OR EXAMINATION. Consultant shall keep all records of funds received from City and make them accessible for audit or examination for a period of three years after final payments are issued and other pending matters. 28.MODIFICATION OF AGREEMENT. This Agreement may not be modified, nor may any of the terms, provisions or conditions be modified or waived or otherwise affected, except by a written amendment signed by all parties. 29.WAIVER. If at any time one party shall waive any term, provision or condition of this Agreement, either before or after any breach thereof, no party shall thereafter be deemed to have consented to any future failure of full performance hereunder. 13.d Packet Pg. 287 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) Page 6 of 11 30.COVENANTS AND CONDITIONS. Each term and each provision of this Agreement to be performed by Consultant shall be construed to be both a covenant and a condition. 31.RIGHT TO TERMINATE. City may terminate this Agreement at any time, with or without cause, in its sale discretion, with thirty (30) days written notice. 32.EFFECT OF TERMINATION. Upon termination as stated in Paragraph "31" of this Agreement, City shall be liable to Consultant only for work performed by Consultant up to and including the date of termination of this Agreement, unless the termination is for cause, in which event Consultant need be compensated only to the extent required by law. Consultant shall be entitled to payment for work satisfactorily completed to date, based on proration of the monthly fees set forth in Exhibit "B" attached hereto. Such payment will be subject to City's receipt of a close-out billing. 33.GOVERNING LAW. This Agreement shall be governed by and construed in accordance with laws of the State of California. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of San Bernardino. In the event of litigation in a U.S. District Court, exclusive venue shall lie in the Central District of California. 34.LITIGATION FEES. Should litigation arise out of this Agreement for the performance thereof, the court shall award costs and expenses, including attorney's fees, to the prevailing party. In awarding attorney's fees, the court shall not be bound by any court fee schedule but shall award the full amount of costs, expenses and attorney's fees paid and/or incurred in good faith. "Prevailing Party" shall mean the party that obtains a favorable and final judgment or order from a court of law described in paragraph "33." This paragraph shall not apply and litigation fees shall not be awarded based on an order or otherwise final judgment that results from the parties' mutual settlement, arbitration, or mediation of the dispute. 35.SEVERABILITY. If any provision of this agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions nevertheless will continue in full force and effect without being impaired or invalidated in any way. 36.FORCE MAJEURE. The respective duties and obligations of the parties hereunder shall be suspended while and so long as performance hereto is prevented or impeded by strikes, disturbances, riots, fire, severe weather, government action, war acts, acts of God, or any other cause similar or dissimilar to the foregoing which are beyond the control of the party from whom the affected performance was due. 13.d Packet Pg. 288 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) Page 7 of 11 37.INTEGRATED AGREEMENT. This Agreement, together with Exhibits "A," "B" and "C" supersede any and all other agreements, either oral or in writing, between the parties with respect to the subject matter herein. Each party to this Agreement acknowledges that no representation by any party, which is not embodied herein, nor any other agreement; statement or promise not contained in this Agreement shall be valid and binding. Any modification of the Agreement shall be effective only if it is in writing and signed by all parties. 38.EFFECTIVE DATE. The effective date of this Agreement is the date the Notice to Proceed is received by Consultant, and shall remain in full force and effect until amended or terminated. Dated: _____________________"CITY" By: _______________________ G. Harold Duffey City Manager ATTEST:APPROVED AS TO FORM _____________________________________________________ Pat Jacquez-Nares, City Clerk Richard L. Adams II,City Attorney Dated: _____________________"CONSULTANT" By: __________________ 13.d Packet Pg. 289 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) This page left intentionally blank. 13.d Packet Pg. 290 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.d Packet Pg. 291 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.d Packet Pg. 292 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.d Packet Pg. 293 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.d Packet Pg. 294 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.d Packet Pg. 295 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.d Packet Pg. 296 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) 13.d Packet Pg. 297 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) Page 9 of 11 EXHIBIT "B" SCHEDULE OF COMPENSATION I.AMOUNT OF COMPENSATION. For performing and completing all services pursuant to Exhibit "A" Scope of Services, is a total amount not to exceed $9,000 (Nine thousand dollars) plus reimbursable expenses which will be charged at cost. II.BILLING. At the end of each calendar month in which services are performed or expenses are incurred under this Agreement, Consultant shall submit an invoice to the City at the following address: City of Grand Terrace 22795 Barton Road Grand Terrace, Ca 92313 The invoice submitted pursuant to this paragraph shall show the: 1)Purchase order number; 2)Project name/description; 3) Name and hours worked by each person who performed services during the billing period; 4) The title/classification under which they were billed; 5) The hourly rate of pay; 6) Actual out-of-pocket expenses incurred in the performance of services; and, 7) Other such information as the City may reasonably require. III.METHOD OF PAYMENT.Payment to Consultant for the compensation specified in Section I, above, shall be made after the Executive Director or designee determines that the billing submitted pursuant to Section II, above, accurately reflects work satisfactorily performed. City shall pay Consultant within thirty (30) days there from. 13.d Packet Pg. 298 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) Page 10 of 11 EXHIBIT "C" The Consultant shall maintain throughout the duration of the term of the Agreement, liability insurance covering the Consultant and, with the exception of Professional Liability Insurance, designating City and City including its elected or appointed officials, directors, officers, agents, employees, volunteers, or consultants, as additional insured against any and all claims resulting in injury or damage to persons or property (both real and personal) caused by any aspect of the Consultant's work, in amounts no less than the following and with such deductibles as are ordinary and reasonable in keeping with industry standards. It shall be stated, in the Additional Insured Endorsement, that the Consultant's insurance policies shall be primary as respects any claims related to or as the result of work. Any insurance, pooled coverage, or self-insurance maintained by the City and City, its elected or appointed officials, directors, officers, agents, employees, volunteers, or consultants shall be non-contributory. Professional Liability Insurance $1,000,000/$2,000,000 General Liability: a.General Aggregate $2,000,000 b.Products Comp/Op Aggregate $2,000,000 c.Personal & Advertising Injury $1,000,000 d.Each Occurrence $1,000,000 e.Fire Damage (any one fire)$ 50,000 f.Medical Expense (any one person)$ 5,000 Workers' Compensation: a.Workers' Compensation Statutory Limits b.EL Each Accident $1,000,000 c.EL Disease -Policy Limit $1,000,000 d.EL Disease -Each Employee $1,000,000 Automobile Liability a.Any vehicle, combined single limit $1,000,000 The Consultant shall provide thirty (30) days advance notice to City in the event of material changes or cancellation of any coverage. Certificates of insurance and additional insured endorsements shall be furnished to City thirty (30) days prior to the effective date of this Agreement. Refusal to submit such certificates shall constitute a material breach of this Agreement entitling City to any and all remedies at law or in equity, including termination of this Agreement. If proof of insurance required under this Agreement is not delivered as required or if such insurance is canceled and not adequately replaced, City shall have the right but not the duty to obtain replacement 13.d Packet Pg. 299 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) Page 11 of 11 insurance and to charge the Consultant for any premium due for such coverage. City has the option to deduct any such premium from the sums due to the Consultant. Insurance is to be placed with insurers authorized and admitted to write insurance in California and with a current A.M. Best's rating of A-:VII or better. Acceptance of insurance from a carrier with a rating lower than A-:VII is subject to approval by City 's Risk Manager. Consultant shall immediately advise City of any litigation that may affect these insurance policies. 13.d Packet Pg. 300 At t a c h m e n t : A t t a c h e m e n t I V - A g r e e m e n t - B o y s & G i r l s C l u b S u m m e r S w i m P r o g r a m ( 1 9 2 6 : S u m m e r S w i m P r o g r a m ) This page left intentionally blank. AGENDA REPORT MEETING DATE: May 24, 2016 TITLE: Amendment No. 7 to the Waste Disposal Agreement Between the City of Grand Terrace and the County of San Bernardino PRESENTED BY: Sandra Molina, Planning & Development Services Director RECOMMENDATION: 1) Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING AMENDMENT NO. 7 , TO THE WASTE DISPOSAL AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE CITY OF GRAND TERRACE; and 2) Authorize the Mayor to Sign the Agreement. 2030 VISION STATEMENT: This staff report supports Goal #4, Work Collaboratively with Community Groups, Private and Public Sector Agencies to Facilitate the Delivery of Services Benefitting Youth, Seniors & Our Community. BACKGROUND: In 1998 the City of Grand Terrace entered into a Waste Disposal Agreement (WDA) with the County of San Bernardino (County), obligating the City to deliver all controllable waste to the San Timoteo Landfill for 15 years and obligating the County to provide capacity for that waste at the lowest tipping fee rate. A total of 15 cities in the County became signatories to identical agreements. The Original WDA has been amended a number of times since then to extend the term of the Agreement; increase allowable tonnage, or revise the rates. The most recent amendment was Amendment No. 6, approved by the City Council in 2012 to extend the term of the agreement to June 30, 2016. DISCUSSION: In 2015 an Ad·Hoc Committee was formed by the WDA City Managers for the purposes of negotiating with the County for an extension to the WDA Contract For the past year, the Ad-Hoc Committee and the County have met to discuss the various amendments to the WDA proposed by the County prior to the expiration of the WDA (June 30, 2016). Based on these discussions, county staff and city/ town managers have agreed to recommend WDA Amendment No. 7 to their respective Councils and Board. 14 Packet Pg. 301 The proposed Amendment No. 7 will change the expiration term of the WDAs to June 30, 2021, allow for a reduction in the WDA rate (from $39.38 to $37 per ton), require the County to hold an annual meeting to discuss the financial statement for the County landfill system, and include language for sharing the net revenue of In- County Non-WDA waste generated based on the revenue sharing formula in Section 8.4 of Amendment No. 7. The county staff has requested that the 15 cities/towns present the WDA Amendment No. 7 to each respective Council for review and approval. Amendment No. 7 shall be effective if and only when all 15 cities/towns have each adopted and executed said amendment and such amendment has been adopted and executed by the County on or before June 30, 2016. FISCAL IMPACT: A positive fiscal impact could be realized. As stated above, the County has agreed to share the revenue received from In-County Non-WDA cities with the WDA cities as a benefit of the WDA contract. The revenue would be split 50/50 between the County and the WDA Cities. The WDA Cities would then split that 50% based on the following formula: 1. 50% of the revenue shall be divided equally among the WDA cities 2. 50% shall be divided among the WDA cities based on a per capita calculation As an example, if the City of San Bernardino' s waste (70,000 tons) that is hauled by Burrtec is brought back in to the County Landfill System, Grand Terrace’s share, based on the above formula, would be approximately would be approximately $15,653.75 This is also shown on Exhibit B of the amended Agreement. ATTACHMENTS:  Resolution WDA Amendment 7 (DOCX)  Grand Terrace - WDA Amendment No. 7.pdf (PDF)  Ltr from County_April 6, 2016.pdf (PDF) APPROVALS: Sandra Molina Completed 05/17/2016 7:27 PM City Attorney Completed 05/18/2016 6:43 PM Finance Completed 05/19/2016 9:09 AM City Manager Completed 05/19/2016 1:36 PM City Council Pending 05/24/2016 6:00 PM 14 Packet Pg. 302 RESOLUTION 2016- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA ADOPTING AMENDMENT NO. 7 TO THE WASTE DISPOSAL AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE CITY OF GRAND TERRACE. RECITALS WHEREAS, on February 24, 1998 the City of Grand Terrace (“City”) and the County of San Bernardino (“County”) entered into a Waste Disposal Agreement (“WDA”); and WHEREAS, in April 2012, fifteen (15) WDA cities met and determined it was in their best interest to change the termination date of the Agreement to expire on June 30, 2016; and WHEREAS, on December 11, 2012, the City Council approved Amendment No.6, extending the termination date of the WDA to June 30, 2016; and WHEREAS, in connection with the on-going administration of the WDA, the Parties have determined it is in their best interest to change the termination date of the Agreement to end on June 30, 2021; and WHEREAS, this change in the termination date will assist both the City and the County in planning for future fiscal years’ budgeting of solid waste disposal services and costs; and WHEREAS, the parties have determined it is in their best interests to apply an annual fixed WDA renewal discount adjustment of $0.82 per ton for the term of the WDA. NOW THEREFORE, BE IT RESOLVED THAT CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: Section 1. The City Council finds that all of the above recitals are true and correct and are incorporated herein by reference. Section 2. The City Council hereby approves Amendment No.7 of the Waste Disposal Agreement between the County of San Bernardino and the City of Grand Terrace as attached hereto as Exhibit 1. 14.a Packet Pg. 303 At t a c h m e n t : R e s o l u t i o n W D A A m e n d m e n t 7 ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) AYES: NOES: ABSENT: ABSTAIN: ATTEST: __________________________ __________________________ Pat Jacquez-Nares Darcy McNaboe City Clerk Mayor 14.a Packet Pg. 304 At t a c h m e n t : R e s o l u t i o n W D A A m e n d m e n t 7 ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) I, PAT JACQUEZ-NARES, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 24th day of May, 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Pat Jacques-Nares City Clerk 14.a Packet Pg. 305 At t a c h m e n t : R e s o l u t i o n W D A A m e n d m e n t 7 ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) This page left intentionally blank. 14.b Packet Pg. 306 At t a c h m e n t : G r a n d T e r r a c e - W D A A m e n d m e n t N o . 7 . p d f ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) 14.b Packet Pg. 307 At t a c h m e n t : G r a n d T e r r a c e - W D A A m e n d m e n t N o . 7 . p d f ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) 14.b Packet Pg. 308 At t a c h m e n t : G r a n d T e r r a c e - W D A A m e n d m e n t N o . 7 . p d f ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) 14.b Packet Pg. 309 At t a c h m e n t : G r a n d T e r r a c e - W D A A m e n d m e n t N o . 7 . p d f ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) 14.b Packet Pg. 310 At t a c h m e n t : G r a n d T e r r a c e - W D A A m e n d m e n t N o . 7 . p d f ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) 14.b Packet Pg. 311 At t a c h m e n t : G r a n d T e r r a c e - W D A A m e n d m e n t N o . 7 . p d f ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) 14.b Packet Pg. 312 At t a c h m e n t : G r a n d T e r r a c e - W D A A m e n d m e n t N o . 7 . p d f ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) 14.b Packet Pg. 313 At t a c h m e n t : G r a n d T e r r a c e - W D A A m e n d m e n t N o . 7 . p d f ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) 14.b Packet Pg. 314 At t a c h m e n t : G r a n d T e r r a c e - W D A A m e n d m e n t N o . 7 . p d f ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) 14.b Packet Pg. 315 At t a c h m e n t : G r a n d T e r r a c e - W D A A m e n d m e n t N o . 7 . p d f ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) EXHIBIT "B" IN-COUNTY NON-WDA DISPOSAL FEE ANALYSIS City Benefit DRAFT EXAMPLE City 1st Half of City Fee Flat City Fee 01/01/15 Calif. DoF Population Per Capita % 2nd half of City Fee Total MVSL Host City Fee Per Ton MVSL Total Host Fee + A19 Share $3.10 Disposal Fee $27.00 1 Fontana 6.67%$12,973.33 204,312 22.78%$44,336.26 $57,309.59 $217,000 $274,310 Ops Contract $0.00¹2 Victorville 6.67%$12,973.33 121,168 13.51%$26,293.78 $39,267.12 Calrecycle Fee $1.40 3 Rialto 6.67%$12,973.33 102,092 11.38%$22,154.24 $35,127.57 $217,000 $252,128 LEA Fee $0.47 4 Hesperia 6.67%$12,973.33 92,177 10.28%$20,002.66 $32,975.99 Fontana Host Fee $3.10 5 Apple Valley 6.67%$12,973.33 71,396 7.96%$15,493.13 $28,466.46 Rialto Host Fee $3.10 6 Colton 6.67%$12,973.33 53,384 5.95%$11,584.47 $24,557.81 Other State, Local fees $0.00 7 Highland 6.67%$12,973.33 54,332 6.06%$11,790.19 $24,763.52 Closure and Post-Closure $3.28 8 Yucaipa 6.67%$12,973.33 52,942 5.90%$11,488.56 $24,461.89 Expansion Costs $4.53 9 Adelanto 6.67%$12,973.33 33,084 3.69%$7,179.32 $20,152.65 Total Adjustments ($15.88)10 29 Palms 6.67%$12,973.33 25,846 2.88%$5,608.65 $18,581.99 11 Barstow 6.67%$12,973.33 23,407 2.61%$5,079.38 $18,052.72 Net In-County Non-WDA Disposal Fee $11.12 12 Loma Linda 6.67%$12,973.33 23,751 2.65%$5,154.03 $18,127.36 13 Yucca Valley 6.67%$12,973.33 21,355 2.38%$4,634.09 $17,607.43 In-County City Fee (50%)$5.56 14 Grand Terrace 6.67%$12,973.33 12,352 1.38%$2,680.42 $15,653.75 15 Big Bear Lake 6.67%$12,973.33 5,165 0.58%$1,120.82 $14,094.15 Example of In- County Waste TPY Per Ton City Fee Annual City Fee 100.00%$194,600.00 896,763 100.00%$194,600.00 $389,200.00 $434,000 $526,437 San Bernardino 70,000 $5.56 $389,200 County Benefit Total 70,000 $389,200 Rate Adjustment WDA Share Net $27.00 ($15.88)($5.56)$5.56 Even Distribution 50%$194,600 TOTAL $389,200.00 Per Capita Distribution 50%$194,600 ¹If the County's Operations Contractor exceeds the Annual Baseline Tonnage of 1,260,236 tons for disposal, then the Operations Contractor's disposal rate of $6.40 per ton as of July 1, 2016, and adjusted annually thereafter, will be included in the calculation of the Net Per Ton In-County Non-WDA Disposal Fee. Proposed Annual Burrtec In-County Non-WDA Waste (100,000 TPY volume) 14.b Packet Pg. 316 At t a c h m e n t : G r a n d T e r r a c e - W D A A m e n d m e n t N o . 7 . p d f ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l This page left intentionally blank. 14.c Packet Pg. 317 At t a c h m e n t : L t r f r o m C o u n t y _ A p r i l 6 , 2 0 1 6 . p d f ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t ) 14.c Packet Pg. 318 At t a c h m e n t : L t r f r o m C o u n t y _ A p r i l 6 , 2 0 1 6 . p d f ( 1 9 1 5 : A m e n d m e n t N o . 7 t o W a s t e D i s p o s a l A g r e e m e n t )