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11/08/2022CITY OF GRAND TERRACE CITY COUNCIL AGENDA ● NOVEMBER 8, 2022 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 COMMENTS FROM THE PUBLIC The public is encouraged to address the City Council on any matter posted on the agenda or on any other matter within its jurisdiction. If you wish to address the City Council, please complete a Request to Speak card located at the front entrance and provide it to the City Clerk. Speakers will be called upon by the Mayor at the appropriate time and each person is allowed three (3) minutes speaking time. If you would like to participate telephonically and speak on an agenda item, you can access the meeting by dialing the following telephone number and you will be placed in the waiting room, muted until it is your turn to speak: *67 1-669-900-9128 Enter Meeting ID: 822 1101 9155 Password: 624439 The City wants you to know that you can also submit your comments by email to ccpubliccomment@grandterrace-ca.gov. To give the City Clerk adequate time to print out your comments for consideration at the meeting, please submit your written comments prior to 5:00 p.m.; or if you are unable to email, please call the City Clerk’s Office at (909) 824-6621 x230 by 5:00 p.m. If you wish to have your comments read to the City Council during the appropriate Public Comment period, please indicate in the Subject Line “FOR PUBLIC COMMENT” and list the item number you wish to comment on. Comments that you want read to the City Council will be subject to the three (3) minute time limitation (approximately 350 words). Pursuant to the provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may direct staff to investigate and/or schedule certain matters for consideration at a future City Council meeting. PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 1st Floor Lobby Area and 2nd Floor Reception Area during regular business hours and on the City’s website www.grandterrace-ca.gov. For further information regarding agenda items, please contact the office of the City Clerk at (909) 824-6621 x230, or via e-mail at dthomas@grandterrace-ca.gov. 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. AMERICANS WITH DISABILITIES ACT In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office, (909) 824-6621 x230 at least 48 hours prior to the advertised starting time of the meeting. This will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Later requests will be accommodated to the extent feasible. Agenda Grand Terrace City Council November 8, 2022 City of Grand Terrace Page 2 CALL TO ORDER Convene City Council. Invocation Pledge of Allegiance Roll Call Attendee Name Present Absent Late Arrived Mayor Darcy McNaboe    Mayor Pro Tem Bill Hussey    Council Member Sylvia Robles    Council Member Doug Wilson    Council Member Jeff Allen    City Manager Konrad Bolowich    City Attorney Adrian Guerra    City Clerk Debra Thomas    Interim Finance Director Terry Shea    A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA B. SPECIAL PRESENTATIONS Proclamation - Designation of Grand Terrace as a Purple Heart City Certificates of Recognition - Senior Center, Parks, Committees & Commission Volunteers Landscape Recognition C. 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. 1. Waive Full Reading of Ordinances on Agenda DEPARTMENT: CITY CLERK Agenda Grand Terrace City Council November 8, 2022 City of Grand Terrace Page 3 2. Approval of Minutes – Regular Meeting – 10/25/2022 DEPARTMENT: CITY CLERK 3. September 1, 2022 & October 6, 2022, Planning Commission, and August 11, 2022, Parks & Recreation Advisory Committee RECOMMENDATION: Receive and file. DEPARTMENT: CITY CLERK 4. Approval of the September-2022 Check Register in the Amount of $843,215.51 RECOMMENDATION: Approve the Check Register No. 09302022 in the amount of $843,215.51 as submitted, for the month ending September 30, 2022. DEPARTMENT: FINANCE 5. Community Benefit Fund Grant Award to the Grand Terrace Cars & Coffee Santa Claus Toy Drive Cruise in the Amount of $2,000.00 RECOMMENDATION: Approve the Community Benefit Fund grant application in the amount of $2,000 to the Grand Terrace Cars & Coffee Santa Claus Toy Drive Cruise to be held on Friday December 9, 2022. DEPARTMENT: FINANCE 6. Second Reading and Adoption of Ordinance of the City Council of Grand Terrace, California, Amending Title 18 of the Grand Terrace Municipal Code, Establishing Art in Public Places Requirements and a Related Environmental Determination Pursuant to CEQA Regulation Section 15061(B)(3) RECOMMENDATION: 1) Direct the City Attorney to Read the title of the Ordinance, waive further reading, and adopt AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, STATE OF CALIFORNIA, FINDING ZONING CODE AMENDMENT 22- 04 EXEMPT FROM CEQA PURSUANT TO SECTION 15061(B)(3) AND AMENDING TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE BY AMENDING CHAPTER 18.06 (DEFINITIONS), AND ADDING CHAPTER 18.81 ESTABLISHING ART IN PUBLIC PLACES REQUIREMENTS DEPARTMENT: PLANNING & DEVELOPMENT SERVICES 7. Second Reading & Adoption of Ordinances Amending Chapters 3.24 & 3.26 of the Municipal Code Thereby Changing Purchasing Procedure Thresholds to $25,000, Changing City Manager’s Sale of Surplus Supplies, Materials, and Equipment Authority to $25,000, and Increasing City Manager's Authorization Limit to $25,000 and Adding a Conflict of Interest & Unlawful Activities Provision to Chapter 3.24 Thereof Agenda Grand Terrace City Council November 8, 2022 City of Grand Terrace Page 4 RECOMMENDATION: 1. Conduct second reading by title only, waive further reading of, and adopt AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.24.070, 3.24.080, 3.24.090, AND 3.24.120 OF CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE THEREBY CHANGING THE THRESHOLDS FOR PURCHASING PROCEDURES, SALE OF SURPLUS SUPPLIES, MATERIALS AND EQUIPMENT, AND CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000; AND ADDING SECTION 3.24.190 TO CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH ADDS REQUIREMENTS RELATING TO CONFLICTS OF INTEREST AND UNLAWFUL ACTIVITY; and 2. Conduct second reading by title only, waive further reading of, and adopt AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.26.030(A) AND 3.26.050(E) OF CHAPTER 3.26 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH INCREASES THE CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000 FOR CONTRACTS FOR PUBLIC PROJECTS AND MAINTENANCE, AS DEFINED THEREIN. DEPARTMENT: FINANCE 8. Participation in State of California Cal-Card Credit Card Program RECOMMENDATION: Authorize the City Manager to execute a Master Services Agreement and any related implementation documentation to participate in the State of California for the Purchase Card Program DEPARTMENT: FINANCE D. 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. E. PUBLIC HEARINGS 9. An Ordinance Amending Title 15 (Buildings And Construction) Of The Grand Terrace Municipal Code To Adopt By Reference The 2022 California Building Codes, 2021 International Property Maintenance Code, And 1997 Uniform Code For Abatement Of Dangerous Buildings (As Amended Due To Local Climatic, Geological, Topographical Agenda Grand Terrace City Council November 8, 2022 City of Grand Terrace Page 5 Conditions) And Determining Such Ordinance Exempt From CEQA Pursuant To CEQA Guidelines Section 15061(B)(3) RECOMMENDATION: 1) Conduct a public hearing; and 2) Direct the City Attorney to Read the Title of, Waive Further Reading of, and Introduce AN ORDINANCE OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING TITLE 15 OF THE GRAND TERRACE MUNICIPAL CODE THEREBY ADOPTING BY REFERENCE THE 2022 CALIFORNIA BUILDING CODE SERIES, INCLUDING THE 2022 CALIFORNIA BUILDING CODE, 2022 CALIFORNIA EXISTING BUILDING CODE, 2022 CALIFORNIA RESIDENTIAL CODE, 2022 CALIFORNIA ELECTRICAL CODE, 2022 CALIFORNIA PLUMBING CODE, 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE, 2022 CALIFORNIA HISTORICAL BUILDING CODE, 2022 CALIFORNIA MECHANICAL CODE, 2021 INTERNATIONAL PROPERTY MAINTENANCE CODE, AND 1997 UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS; MAKING CERTAIN AMENDMENTS TO SUCH CODES (AS APPLICABLE) DUE TO LOCAL CLIMATIC, GEOLOGICAL, AND/OR TOPOGRAPHICAL CONDITIONS; AND DETERMINING THEREOF TO BE EXEMPT FROM CEQA PURSUANT TO CEQA GUIDELINES SECTION 15061(B)(3) DEPARTMENT: PLANNING & DEVELOPMENT SERVICES F. UNFINISHED BUSINESS - NONE G. NEW BUSINESS - NONE H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL Pursuant to City Council policy set forth in the 2030 Vision and 2014 ‐2020 Strategic Plan, if a City Council Member is interested in a task or project that will require more than one hour of staff time to complete, the item will be agendized to ask the City Council if time should be spent on preparing a report on the proposed item. In accordance with this policy, this is the opportunity for City Council Members to request that an item be placed on a future agenda and authorize staff to prepare an agenda report. To ensure compliance with the Brown Act, the request shall be submitted to the City Manager at least one week in advance of the meeting so that the topic can be included on the agenda under this section. In order for any listed item to be placed on a future agenda, the City Council must act by formal motion (i.e., requires a motion and a second) to direct the City Manager to place the item on a future agenda. Pursuant to the Agenda Grand Terrace City Council November 8, 2022 City of Grand Terrace Page 6 requirements of the Brown Act, no other items may be considered other than those listed below. 1.Review and Update the City of Grand Terrace 2030 Vision and 2014-2020 Strategic Plan Requested by: Council Member Jeff Allen I.CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Council Member Doug Wilson Council Member Sylvia Robles Mayor Pro Tem Bill Hussey Mayor Darcy McNaboe J.CITY MANAGER COMMUNICATIONS K.RECESS TO CLOSED SESSION CLOSED SESSION 1.CONFERENCE WITH LABOR NEGOTIATORS, pursuant to Government Code Section 54957.6 Agency Designated Representatives: Konrad Bolowich, City Manager Unrepresented Employee: Adrian Guerra, City Attorney RECONVENE TO OPEN SESSION REPORT OUT OF CLOSED SESSION L.ADJOURN The Next Regular City Council Meeting will be held on Tuesday, December 13, 2022, at 6:00 PM. Any request to have an item placed on a future agenda must be made in writing and submitted to the City Clerk’s office and the request will be processed in accordance with Council Procedures. CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● OCTOBER 25, 2022 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 CALL TO ORDER Convene City Council Invocation Pastor Harold Cortés of Seventh Day Sabbath Church led the invocation. Pledge of Allegiance Council Member Sylvia Robles led the Pledge of Allegiance. Attendee Name Title Status Arrived Darcy McNaboe Mayor Present Bill Hussey Mayor Pro Tem Present Sylvia Robles Council Member Present Doug Wilson Council Member Present Jeff Allen Council Member Present Konrad Bolowich City Manager Present Adrian Guerra City Attorney Present Debra Thomas City Clerk Present Terry Shea Interim Finance Director Present A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA None. B. SPECIAL PRESENTATIONS Sandy Ross, representative of the Family Court Awareness Month Committee accepted the Proclamation issued by the City Council proclaiming the month of November 2022 Family Court Awareness Month. C. CONSENT CALENDAR C.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 O c t 2 5 , 2 0 2 2 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 October 25, 2022 City of Grand Terrace Page 2 RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Doug Wilson, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen 1. Waive Full Reading of Ordinances on Agenda DEPARTMENT: CITY CLERK 2. Approval of Minutes – Regular Meeting – 10/11/2022 3. City Department Monthly Activity Report - August 2022 RECEIVE AND FILE. 4. Cancellation of City Council Meetings Scheduled for November 22, 2022 and December 27, 2022 ADOPT A RESOLUTION CANCELLING THE CITY COUNCIL MEETINGS SCHEDULED FOR NOVEMBER 22, 2022 AND DECEMBER 27, 2022 5. Authorize Purchase Order for Veterans Freedom Park Equipment with Per Capital Grant Funds 1. AUTHORIZE THE EXPENDITURE OF UP TO $16,000 FROM PARKS FUND (FUND 49) FOR THE PURCHASE OF TWO ADA COMPLIANT BLEACHERS 2. AUTHORIZE CITY MANAGER TO EXECUTE A PURCHASE ORDER AND ALL NECESSARY SALES DOCUMENTATION TO PROCURE TWO ADA COMPLAINT BLEACHERS NOT TO EXCEED THE GRANT AWARDED AMOUNT 6. Authorize Purchase Order for TJ Austin Park Equipment with Per Capital Grant Funds 1. AUTHORIZE THE EXPENDITURE OF UP TO $5,500 FROM PARKS FUND (FUND 49) FOR THE PURCHASE OF SURFACE REPAIR; 2. AUTHORIZE CITY MANAGER TO EXECUTE A PURCHASE ORDER AND ALL NECESSARY SALES DOCUMENTATION TO PROCURE SURFACE REPAIR NOT TO EXCEED THE GRANT AWARDED AMOUNT 7. Approval of a Professional Services Agreement with Revenue & Cost Specialists for a User Fee Study 1. APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH RCS FOR A COMPREHENSIVE CITYWIDE USER FEE AND RATE STUDY FOR A NOT-TO- EXCEED AMOUNT OF $28,000. 2. AUTHORIZE THE MAYOR TO EXECUTE THE PROFESSIONAL SERVICES AGREEMENT WITH RCS FOR A COMPREHENSIVE CITYWIDE USER FEE AND RATE STUDY SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM. C.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 O c t 2 5 , 2 0 2 2 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 October 25, 2022 City of Grand Terrace Page 3 8. Approval of Amendment to the Agreement Between the City of Grand Terrace and Interwest Consulting Group, Inc. to Increase Compensation 1. APPROVE AMENDMENT NO. 3 TO THE AGREEMENT FOR ON-CALL ENGINEERING SERVICES WITH INTERWEST CONSULTING GROUP INC. (DATED JULY 14, 2020), INCREASE CONTRACT AMOUNT FROM $100,000 TO $125,000; AND 2. AUTHORIZE THE CITY MANAGER TO EXECUTE THE ABOVE-MENTIONED AMENDMENTS SUBJECT TO THE CITY ATTORNEY’S APPROVAL AS TO FORM. D. PUBLIC COMMENT None. E. PUBLIC HEARINGS 9. Art in Public Places Ordinance Haide Aguirre, Senior Planner gave the staff report and PowerPoint presentation for this item. Mayor McNaboe opened the public hearing at 6:25 p.m. PUBLIC COMMENTS Mayor McNaboe closed the public hearing at 6:25 p.m. Adrian Guerra, City Attorney read, by title only, Agenda Item No. 9, An Ordinance Establishing Art in Public Places 1) CONDUCT A PUBLIC HEARING, AND 2) DIRECT THE CITY ATTORNEY TO READ THE TITLE OF THE ORDINANCE, WAIVE FURTHER READING, AND INTRODUCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, STATE OF CALIFORNIA, FINDING ZONING CODE AMENDMENT 22-04 EXEMPT FROM CEQA PURSUANT TO SECTION 15061(B)(3) AND AMENDING TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE BY AMENDING CHAPTER 18.06 (DEFINITIONS), AND ADDING CHAPTER 18.81 ESTABLISHING ART IN PUBLIC PLACES REQUIREMENTS C.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 O c t 2 5 , 2 0 2 2 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 October 25, 2022 City of Grand Terrace Page 4 RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Sylvia Robles, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen 10. Tentative Tract Map 21-01 (Tentative Tract Map No. 20395) and Environmental 21-03 Haide Aguirre, Senior Planner gave the staff report and PowerPoint presentation for this item. Mayor McNaboe opened the public hearing at 6:40 p.m. PUBLIC COMMENTS Anonymous Caller No. 1, via Zoom, expressed concern and opposed the project. Anonymous Caller No. 2, via Zoom, expressed concern and opposed the project. Mayor McNaboe closed the public hearing at 7:00 p.m. Discussion ensued amongst the City Council regarding sewer, street entry, and block walls. Adrian Guerra, City Attorney read, by title only, Agenda Item No. 9, An Ordinance Establishing Art in Public Places 1) CONDUCT A PUBLIC HEARING, AND 2) ADOPT A RESOLUTION OF THE CITY COUNCIL ADOPTING AN ENVIRONMENTAL EXEMPTION PURSUANT TO SECTION 15332 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINES (ENVIRONMENTAL 21-03) APPROVING TENTATIVE TRACT MAP 21-01 (TENTATIVE TRACT MAP NO. 20395) PROPOSING A SIX LOT SUBDIVISION ON A 3.8-ACRE LOT, LOCATED AT 11899 ROSEDALE AVENUE (APN 0275-083-03-0000). RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Doug Wilson, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen F. UNFINISHED BUSINESS - NONE C.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 O c t 2 5 , 2 0 2 2 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 October 25, 2022 City of Grand Terrace Page 5 G. NEW BUSINESS 11. Funding for PARS Section 115 Trust Terry Shea, Interim Finance Director gave the staff report and PowerPoint presentation for this item. Finance Director Shea introduced Anthony Armas, Client Services Coordinator for PARS, and Keith Stribling, Senior Portfolio Manager of HighMark Capital Management who also gave a PowerPoint presentation on this item. Discussion ensued by the City Council who in turn requested more information on the item such as spreadsheets and projections. Additionally, it was suggested by Council Member Sylvia Robles that an ad hoc committee be established to discuss and review the requested materials and options before moving forward. Council Member Jeff Allen moved to approve an ad hoc committee, with Mayor McNaboe and Council Member Allen serving as the committee and bringing back recommendations to the City Council for discussion. Council Member Robles provided an alternate motion to approve an ad hoc committee, with Mayor McNaboe and Mayor Pro Tem Bill Hussey serving as the committee and bringing back recommendations to the City Council discussion. CONSIDER THE AMOUNT FOR THE INITIAL FUNDING FOR THE PARS SECTION 115 TRUST AND SELECT THE INVESTMENT STRATEGY. RESULT: NO ACTION TAKEN 12. Approval of Revisions to the City's Fiscal Policies and First Reading & Introduction of Ordinances Amending Chapters 3.24 & 3.26 of the Municipal Code Thereby Changing Purchasing Procedure Thresholds to $25,000, Changing City Manager’s Sale of Surplus Supplies, Materials, and Equipment Authority to $25,000, and Increasing City Manager's Authorization Limit to $25,000 and Adding a Conflict of Interest & Unlawful Activities Provision to Chapter 3.24 Thereof Terry Shea, Interim Finance Director gave the staff report and PowerPoint presentation for this item. City Attorney Guerra read, by title only, Agenda Item No. 12, An Ordinance Changing Purchasing Procedure Thresholds. 1. READ BY TITLE ONLY, WAIVE FURTHER READING AND INTRODUCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.24.070, 3.24.080, 3.24.090, AND 3.24.120 OF CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE THEREBY CHANGING THE THRESHOLDS FOR PURCHASING PROCEDURES, SALE OF SURPLUS SUPPLIES, MATERIALS AND EQUIPMENT, AND CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000; AND ADDING SECTION C.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 O c t 2 5 , 2 0 2 2 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 October 25, 2022 City of Grand Terrace Page 6 3.24.190 TO CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH ADDS REQUIREMENTS RELATING TO CONFLICTS OF INTEREST AND UNLAWFUL ACTIVITY; AND 2. READ BY TITLE ONLY, WAIVE FURTHER READING AND INTRODUCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.26.030(A) AND 3.26.050(E) OF CHAPTER 3.26 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH INCREASES THE CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000 FOR CONTRACTS FOR PUBLIC PROJECTS AND MAINTENANCE, AS DEFINED THEREIN; AND 3. APPROVE THE PROPOSED REVISIONS TO THE ATTACHED CITY FISCAL POLICIES, SUBJECT TO THE CITY COUNCIL’S APPROVAL OF THE ABOVE- MENTIONED ORDINANCES (WHERE APPLICABLE) RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Doug Wilson, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL None. I. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Council Member Jeff Allen commented on board meetings and events that she attended. Click here for report. Council Member Doug Wilson Nothing Official to Report Council Member Sylvia Robles Nothing Official to Report. Mayor Pro Tem Bill Hussey Nothing Official to Report. Mayor Darcy McNaboe On October 19, 2022, Mayor McNaboe attended the following Unity Day at Terrace View Elementary School and on October 21, 2022, she attended the Red Ribbon Week celebration at Terrace Hills Middle School. C.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 O c t 2 5 , 2 0 2 2 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 October 25, 2022 City of Grand Terrace Page 7 J. CITY MANAGER COMMUNICATIONS Konrad Bolowich, City Manager announced the following: City of Grand Terrace Trunk or Treat to be held on Monday, October 31, 2022, beginning at 5:00 p.m. in the Walgreens parking lot. SHERIFF’S REPORT Bryan Lane, Lieutenant with the San Bernardino County Sheriff’s Department announced the following: On November 25, 2022, and December 9, 2022, the Sheriff’s Department will conduct public safety operations within the City of Grand Terrace. Information will be brought back to the City Council at its next regular meeting on the Etch-A-Cat catalytic converter program. K. CLOSED SESSION - NONE L. ADJOURN C.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 O c t 2 5 , 2 0 2 2 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) AGENDA REPORT MEETING DATE: November 8, 2022 Council Item TITLE: September 1, 2022 & October 6, 2022 Planning Commission, and August 11, 2022 Parks & Recreation Advisory Committee PRESENTED BY: Debra Thomas, City Clerk RECOMMENDATION: Receive and file. 2030 VISION STATEMENT: This staff report supports Goal #5, Engage in Proactive Communication. BACKGROUND: Beginning with the November 14, 2017, City Council meeting, the City Manager directed the City Clerk to provide Council with a copy of the Planning Commission, Historical & Cultural Activities Committee and Volunteer Emergency Operations Committee minutes to keep Council up-to-date on those Commission/Committee activities and on January 16, 2018, the City Manager requested that the Parks & Recreation Advisory minutes be included in the Committee/Commission Report. DISCUSSION: On October 6, 2022, the Planning Commission held its Regular Meeting and approved its September 1, 2022, Regular Meeting minutes. On October 20, 2022, the Commission held its Regular Meeting and approved its October 6, 2022, Regular Meeting minutes. The minutes for these meetings are included as an attachment to this report. The Commission’s next Regular Meeting is scheduled for November 17, 2022. On October 13, 2022, 2022, the Parks & Recreation Advisory Committee held its Regular Meeting and approved its August 11, 2022, Regular Meeting minutes. The minutes for this meeting is included as an attachment to this report. The Committee’s next Regular Meeting is scheduled for November 10, 2022, 2022. Historical & Cultural Activities Committee – None to Report FISCAL IMPACT: None. ATTACHMENTS: C.3 Packet Pg. 14 • 09-01-2022 (PDF) • 10-06-2022 (PDF) • 08-11-2022 (PDF) APPROVALS: Debra Thomas Completed 11/01/2022 9:21 AM City Manager Completed 11/02/2022 3:06 PM City Council Pending 11/08/2022 6:00 PM C.3 Packet Pg. 15 C.3.a Packet Pg. 16 At t a c h m e n t : 0 9 - 0 1 - 2 0 2 2 ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) C.3.a Packet Pg. 17 At t a c h m e n t : 0 9 - 0 1 - 2 0 2 2 ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) C.3.a Packet Pg. 18 At t a c h m e n t : 0 9 - 0 1 - 2 0 2 2 ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) C.3.a Packet Pg. 19 At t a c h m e n t : 0 9 - 0 1 - 2 0 2 2 ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) C.3.b Packet Pg. 20 At t a c h m e n t : 1 0 - 0 6 - 2 0 2 2 ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) C.3.b Packet Pg. 21 At t a c h m e n t : 1 0 - 0 6 - 2 0 2 2 ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) C.3.b Packet Pg. 22 At t a c h m e n t : 1 0 - 0 6 - 2 0 2 2 ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) C.3.b Packet Pg. 23 At t a c h m e n t : 1 0 - 0 6 - 2 0 2 2 ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) C.3.b Packet Pg. 24 At t a c h m e n t : 1 0 - 0 6 - 2 0 2 2 ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) C.3.c Packet Pg. 25 At t a c h m e n t : 0 8 - 1 1 - 2 0 2 2 ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) C.3.c Packet Pg. 26 At t a c h m e n t : 0 8 - 1 1 - 2 0 2 2 ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) C.3.c Packet Pg. 27 At t a c h m e n t : 0 8 - 1 1 - 2 0 2 2 ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) AGENDA REPORT MEETING DATE: November 8, 2022 Council Item TITLE: Approval of the September-2022 Check Register in the Amount of $843,215.51 PRESENTED BY: Christine Clayton, Finance Manager RECOMMENDATION: Approve the Check Register No. 09302022 in the amount of $843,215.51 as submitted, for the month ending September 30, 2022. 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 month of September-2022 has been prepared in accordance with Government Code §37202 and is hereby submitted for City Council’s approval. The check register lists all vendor payments for the respective month, along with a brief description of the type of goods or services purchased and the account code(s) associated with each payment. The check registers list all payments made to vendors and employee reimbursements during the month of September-2022. 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 Grand Terrace 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. DISCUSSION: CHECK REGISTER A total of $843,215.51 in accounts payable checks and/or wires were issued during the period for services, reimbursements, supplies and contracts and are detailed in the individual monthly register. Below is a table that lists payments larger than $10,000 for the month of September- 2022. C.4 Packet Pg. 28 Payments larger than $10,000: Check No. Payee Description Amount 79356 ALESHIRE & WYNDER LLP JUL 2022 LEGAL SERVICES $12,845.77 79382 SB COUNTY SHERIFF JUL & AUG 2022 LAW ENFORCEMENT SERVICES $384,336.00 79389 ARROWHEAD CREDIT UNION AUG-SEP 2022 VISA CHARGES $14,659.74 79395 GOVPILOT FY22-23 CODE, BUILDING AND PLANNING SOFTWARE $51,764.00 79400 SB COUNTY SHERIFF SEP 2022 LAW ENFORCEMENT SERVICES $192,166.00 79425 ALESHIRE & WYNDER LLP AUG 2022 LEGAL SERVICES $21,009.75 16939467 CA PUB EMPLOYEES RETIRE OCT 2022 PERS HEALTH INS $21,917.65 25930521 SO CAL EDISON AUG 2022 ENERGY USAGE $18,087.02 TOTAL PAYMENTS LARGER THAN $10,000 $716,785.93 PAYROLL Payroll costs for the month: Pay Per. Period Start Period End Pay Date Amount SEP-22 5 From 08/20/2022 to 09/02/2022 09/08/2022 $50,325.88 6 From 09/03/2022 to 09/16/2022 09/22/2022 $50,799.39 $101,125.27 FISCAL IMPACT: All disbursements (including payroll) were made in accordance with the Approved Budget for Fiscal Year 2022-23 in the amount of: Description Amount SEP-22 Check Register $843,215.51 Payroll $101,125.27 $944,340.78 ATTACHMENTS: • FY2022-23 Check Register Account Index (PDF) • Sep Check Register (PDF) C.4 Packet Pg. 29 APPROVALS: Christine Clayton Completed 10/24/2022 11:32 AM Finance Completed 10/24/2022 11:32 AM City Manager Completed 10/25/2022 2:31 PM City Council Pending 11/08/2022 6:00 PM C.4 Packet Pg. 30 CITY OF GRAND TERRACE FY2022-23 GRAND TERRACE CIVIC CENTER 22795 BARTON ROAD GRAND TERRACE, CA 92313 CHECK REGISTER Account Index Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 pm. C.4.a Packet Pg. 31 At t a c h m e n t : F Y 2 0 2 2 - 2 3 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 ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f 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 115 OVERTIME 11 STREET FUND 125 CITY CLERK 120 COUNCIL STIPENDS 12 STORM DRAIN FUND 140 FINANCE 138 MEDICARE / SUI 13 PARK FUND 160 CITY ATTORNEY 139 EMPLOYEES' BENEFIT PLAN 14 AB 3229 COPS FUND 172 BUILDING & SAFETY 140 RETIREMENT 15 AIR QUALITY IMPROVEMENT FUND 175 PUBLIC WORKS 142 HEALTH/LIFE INSURANCE 16 GAS TAX FUND 180 COMMUNITY EVENTS 143 WORKERS' COMPENSATION 17 TRAFFIC SAFETY FUND 185 RENTAL INSPECTION PROGRAM 210 OFFICE EXPENSE 18 TRANS. DEV. ACT (T D A FUND)187 ENFORCEMENT PROGRAM 211 POSTAGE & MAILING 19 FACILITIES DEVELOPMENT FUND 190 NON-DEPARTMENTAL 220 SPECIAL DEPARTMENTAL EXP 20 MEASURE I FUND 195 FACILITIES MAINTENANCE 230 ADVERTISING 21 WASTE WATER DISPOSAL FUND 370 PLANNING & DEVELOPMENT SVCS 235 COMMUNICATIONS 22 COMMUNITY DEV. BLOCK GRANT 380 MGT INFORMATION SYSTEMS 238 UTILITIES 25 SPRING MOUNTAIN RANCH FUND 410 LAW ENFORCEMENT 240 RENTS & LEASES 26 LSCPG/ LGHTG ASSESSMENT DIST.411 ASSET FORFEITURES 244 CUSTODIAL SERVICES 32 S/A CAPITAL PROJECTS FUND 430 RECREATION SERVICES 245 MAINT BLDG GRNDS EQUIPMNT 36 S/A 2011 TABS BOND PROCEEDS 441 CHILD CARE - NUTRITION GRANT 246 MAINT/OPER OF EQUIPMNT 45 CIP - COMMERCE WAY 445 CHILD CARE - TINY TOTS 250 PROFESSIONAL SERVICES 46 CIP - STREET IMPROVEMENTS 446 CHILD CARE - AFTER SCHOOL 251 BANKING SERVICE CHARGES 47 CIP - BARTON RD. BRIDGE PROJECT 447 CHILD CARE - PRE-SCHOOL 252 ROAD MAINTENANCE 48 CIP - CAPITAL PROJECTS FUND 450 PARKS MAINTENANCE 254 STREET SWEEPING 49 CIP - PARKS 461 COMMUNITY GRANTS 255 CONTRACTUAL SERVICES 50 CAPITAL PROJECT BOND PROCEEDS 500 AIR QUALITY PROGRAMS 256 ANIMAL SHELTERING SVCS 52 HOUSING AUTHORITY 510 STREET & SIGNAL LIGHTING 260 INSURANCE & SURETY BONDS 61 COMMUNITY BENEFITS FUND 573 LINE MAINTENANCE 265 MEMBERSHIPS & DUES 62 LIGHT UP GRAND TERRACE FUND 600 ZONE 1 13364 CANAL -TERR PINES 268 TRAINING 63 ILLEGAL FIREWORKS FUND 601 ZONE 3 TRACT 14471 PICO & ORIOLE 270 TRAVEL/CONFERENCES/MTGS 64 PUBLIC SAFETY FUND 602 ZONE 2 14264 FORREST CITY PHASE II 271 MILEAGE 65 SENIOR BUS PROGRAM FUND 603 ZONE 4 TRACT 17766 GREENBRIAR 625 NPDES 66 CAL RECYCLE GRANT 604 ZONE 5 TRACT 18793 PALOMINO 631 STORM DRAIN MAINTENANCE 67 PUBLIC EDUC & GOVT ACCESS (PEG)605 ZONE 6 TRACT 18071 JADEN 801 PLANNING COMMISSION 68 40TH YR CELEBRATION FUND 606 ZONE 7 TRACT 18604 TESORO/VAN BUREN 804 HISTORICAL & CULTURAL COMM. 69 COMMUNITY DAY FUND 625 NPDES 311 FACILITY IMPROVEMENTS 70 FIXED ASSED/EQUIP REPL FUND 631 STORM DRAIN MAINTENANCE 570 WASTEWATER TREATMENT 73 ACTIVE TRANS PRGM (ATP) GRANT 700 CAPITAL OUTLAY 400 OTHER COMMUNITY GRANTS 74 HIGHWAY SFTY IMPV PRGM (HSIP)705 EVERY 15 MINUTES 601 ELECTRICAL VEHICLE STATIONS 75 EMER MGMT PREP GRANT (EMPG)801 PLANNING COMMISSION 700 COMPUTER EQUIPMENT 76 ENHANCED INFRA FIN DIST (EIFD)804 HISTORICAL & CULTURAL COMMITTEE 701 CAPITAL IMPROVEMENT OTHER 77 SO CAL INCENTIVE PROJECT (SCIP)805 SENIOR CITIZENS PROGRAM 705 VEHICLES 90 COVID-19 EMERGENCY FUND 808 EMERGENCY OPERATIONS PROG.998 OVERHEAD COST ALLOCATION 95 DOG PARK ENDOWMENT FUND 999 TRANSFERS 999 TRANSFERS OUT City of Grand Terrace Check Register Index C.4.a Packet Pg. 32 At t a c h m e n t : F Y 2 0 2 2 - 2 3 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 ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f CITY OF GRAND TERRACE FY2022-23 GRAND TERRACE CIVIC CENTER 22795 BARTON ROAD GRAND TERRACE, CA 92313 MONTHLY CHECK REGISTER For the Period Ending September 30, 2022 Darcy McNaboe, Mayor Bill Hussey, Mayor Pro Tem Sylvia Robles, Council Member Doug Wilson, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 pm. C.4.b Packet Pg. 33 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # PW - ENGINEERING PROPERTY REIMBURSABLE COUNCIL & PLANNING COMMISSION Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total 79356 09/01/2022 ALESHIRE AND WYNDER LLP 70075 JUL 2022 LEGAL SERVICES - GENERAL 08/26/2022 E 10-160-250-000-000 5,309.50 5,309.50 70076 JUL 2022 LEGAL SERVICES - LITIGATION 08/26/2022 E 10-160-250-100-000 2,672.00 2,672.00 70081 JUL 2022 LEGAL SERVICES - SUNNY DAYS 08/26/2022 B 10-015-61-00 2,214.27 2,214.27 70078 JUL 2022 LEGAL SERVICES - 08/26/2022 E 10-160-250-000-000 1,032.50 1,032.50 70079 JUL 2022 LEGAL SERVICES - CITY REAL 08/26/2022 E 10-160-250-000-000 822.50 822.50 70080 JUL 2022 LEGAL SERVICES - LEWIS GROUP - 08/26/2022 B 10-015-60-00 480.00 480.00 70077 JUL 2022 LEGAL SERVICES - PLANNING 08/26/2022 E 10-160-250-000-000 315.00 315.00 12,845.77 79357 09/01/2022 BENSON PRODUCTIONS 1588 AUG 2022 - AUDIO/VISUAL SVCS FOR CITY 08/24/2022 E 67-380-250-000-000 880.00 880.00 880.00 C.4.b Packet Pg. 34 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total 3313 TRACT 18070 JADEN 79358 09/01/2022 EZ SUNNYDAY LANDSCAPE 3315 AUG 2022 LANDSCAPING SERVICES - PARKS 08/17/2022 E 10-195-255-000-000 200.00 E 10-450-255-000-000 3,665.00 E 26-600-255-000-000 150.00 E 26-601-255-000-000 80.00 4,095.00 AUG 2022 LANDSCAPING SERVICES - 08/17/2022 E 26-605-255-000-000 750.00 750.00 4,845.00 79359 09/01/2022 FRUIT GROWERS SUPPLY 92328669 GLOVES, GAS CAP, AND PITCHFORK 08/23/2022 E 10-450-245-000-000 96.31 96.31 92329100 CREDIT FOR GAS CAP RETURN 08/25/2022 E 10-450-245-000-000 -8.14 -8.14 88.17 79360 09/01/2022 INLAND BUSINESS FORMS 34703 BUSINESS CARDS FOR CITY STAFF 08/25/2022 E 10-110-210-000-000 269.75 E 10-120-210-000-000 107.91 E 10-125-210-000-000 107.91 E 10-140-210-000-000 161.85 E 10-172-210-000-000 107.91 E 10-175-210-000-000 377.65 E 10-185-210-000-000 107.91 E 10-370-210-000-000 107.90 E 10-805-210-000-000 53.95 1,402.74 1,402.74 79361 09/01/2022 KRISTIN JAMES MILEAGE REIM 8-22MILEAGE REIMBURSEMENT FOR AUG 2022 08/29/2022 E 10-185-272-000-000 140.63 140.63 140.63 C.4.b Packet Pg. 35 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total CIVIC CENTER SENIOR CENTER 79362 09/01/2022 KONICA MINOLTA 40641394 AUG-SEP 2022 RENT FOR (2) PHOTOCOPIERS 08/22/2022 E 10-190-212-000-000 258.60 258.60 258.60 79363 09/01/2022 MIDAMERICA ADMIN RETIREMENT PAYDATE 08252022 ARSPAYDATE 08252022 ARS RETIREMENT 08/25/2022 B 10-022-68-00 189.75 189.75 189.75 79364 09/01/2022 S B CNTY FIRE DEPT CESQG PRGM 7043 DISPOSAL OF FLAMMABLE LIQUIDS 08/23/2022 E 10-175-250-000-000 91.85 91.85 91.85 79365 09/01/2022 SITEONE LANDSCAPE SUPPLY 122618760-001 IRRIGATION SUPPLIES FOR PARKS 08/19/2022 E 10-450-245-000-000 136.76 136.76 136.76 79366 09/01/2022 TERMINIX 423935504 AUG 2022 PEST CONTROL SVCS FOR 08/19/2022 E 10-195-245-000-000 100.00 100.00 423936230 AUG 2022 PEST CONTROL SVCS FOR 08/19/2022 E 10-805-245-000-000 100.00 100.00 200.00 79367 09/01/2022 TIME WARNER CABLE 0197046081622 CITY HALL CABLE - AUG-SEP 2022 08/16/2022 E 10-190-238-000-000 109.53 109.53 109.53 C.4.b Packet Pg. 36 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total EMPIRE CONSTRUCTION US MODULAR 00417572 GRAND T-1 IN ERORR 79368 09/01/2022 WILLDAN 00417599 JUL 2022 ENGINEERING SERVICES FOR 08/17/2022 B 23-515-12-00 2,646.00 2,646.00 00417589 JUL 2022 PERMIT PUBLIC WORKS INSPECTION 08/17/2022 E 10-172-250-100-000 1,512.00 1,512.00 00417603 JUL 2022 BARTON RD CM/INSPECTION 08/17/2022 E 10-172-250-100-000 1,260.00 1,260.00 00417565 JUL 2022 ENGINEERING SERVICES FOR 08/17/2022 B 23-510-32-00 756.00 756.00 JUL 2022 ENGINEERING SERVICES FOR 08/17/2022 B 23-510-90-00 504.00 504.00 6,678.00 79369 09/08/2022 AMERICAN FIDELITY ASSURANCE CO6060590 SEP 2022 EMP PAID FLEX SPEND/DEP CARE 09/02/2022 B 23-250-10-00 83.32 83.32 83.32 79370 09/08/2022 ANIMAL EMERGENCY CLINIC 195319 & 196970 AUG 2022 EMERGENCY VETERINARY SVCS 09/02/2022 E 10-185-250-000-000 300.00 300.00 300.00 79371 09/08/2022 ALEJANDRO CAPIZ REIMB AC REIMBURSE 457 LOAN PYMT DEDUTED 08/31/2022 B 10-022-64-00 140.87 140.87 140.87 C.4.b Packet Pg. 37 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total SURVEY REVIEW BI MONTHLY MAINT SIGNS SERVICE FOR SENIOR CENTER SERVICE FOR SENIOR CENTER FOR SENIOR CENTER 79372 09/08/2022 DESMOND AND LOUIS INC 13497 TOT BALLOT MEASURE VOTER OUTREACH 09/01/2022 E 10-120-250-000-000 3,300.00 3,300.00 3,300.00 79373 09/08/2022 EYEMED FIDELITY SECURITY LIFE 165418489 SEP 2022 EMPLOYEE PAID VISION INSURANCE 08/21/2022 B 10-022-71-00 82.26 82.26 82.26 79374 09/08/2022 EZ SUNNYDAY LANDSCAPE 3324 SEP 2022 RIGHT OF WAY LANDSCAPING 09/06/2022 E 10-450-245-000-000 575.00 E 10-631-255-000-000 750.00 1,325.00 1,325.00 79375 09/08/2022 FASTSIGNS SAN BERNARDINO INV-21462 (50) COROPLAST 18" X 24" DOUBLE SIDED 08/25/2022 E 10-120-220-000-000 634.01 634.01 634.01 79376 09/08/2022 FIREMASTER 0000906495 FY2021-22 SEMI-ANNUAL FIRE EXTINGUISHER 11/17/2021 E 10-805-245-000-000 580.11 580.11 0000963094 FY2021-22 SEMI-ANNUAL FIRE EXTINGUISHER 05/26/2022 E 10-805-245-000-000 580.11 580.11 0000895303 FY2021-22 FIRE EXTINGUISHER MAINTENANCE 10/08/2021 E 10-805-245-000-000 95.00 95.00 1,255.22 C.4.b Packet Pg. 38 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total FEES CENTER AND PARKS 79377 09/08/2022 GOPHER PATROL 9883741 SEP 2022 GOPHER CONTROL AT PICO PARK 09/02/2022 E 10-450-245-000-000 400.00 400.00 400.00 79378 09/08/2022 HDL SOFTWARE LLC SIN020783 JUL 2022 BUSINESS LICENSE PROCESSING 07/31/2022 E 10-140-250-000-000 315.00 315.00 315.00 79379 09/08/2022 HOME DEPOT CREDIT SERVICE 1274043 SUPPLIES FOR CITY HALL 08/04/2022 E 10-195-245-000-000 320.19 320.19 2045057 SUPPLIES FOR CITY HALL 08/03/2022 E 10-195-245-000-000 149.26 149.26 2275184 SUPPLIES FOR RICHARD ROLLINS PARK 08/23/2022 E 10-450-245-000-000 50.19 50.19 1530232 SUPPLIES FOR RICHARD ROLLINS PARK 08/24/2022 E 10-450-245-000-000 11.11 11.11 530.75 79380 09/08/2022 MORAN JANITORIAL SERVICES LLC 2091 AUG 2022 JANITORIAL SERVICES FOR CIVIC 09/01/2022 E 10-195-245-000-000 1,304.00 E 10-450-245-000-000 1,325.00 2,629.00 2,629.00 79381 09/08/2022 PAY PLUS SOLUTIONS INC 29181 SEP 2022 CALPERS INSIGHT E-TOOLS PAY 09/01/2022 E 10-140-255-000-000 515.81 515.81 515.81 C.4.b Packet Pg. 39 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total RENTAL 79382 09/08/2022 SB COUNTY SHERIFF 21899 JUL 2022 LAW ENFORCEMENT SERVICES 08/04/2022 E 10-410-255-000-000 5,441.67 E 10-410-256-000-000 173,395.00 E 14-411-256-000-000 13,333.33 192,170.00 21900 AUG 2022 LAW ENFORCEMENT SERVICES 08/04/2022 E 10-410-255-000-000 5,441.67 E 10-410-256-000-000 173,391.00 E 14-411-256-000-000 13,333.33 192,166.00 384,336.00 79383 09/08/2022 SCA OF CA LLC 103757CS AUG 2022 STREET SWEEPING SERVICES 08/31/2022 E 16-900-254-000-000 4,542.00 4,542.00 4,542.00 79384 09/08/2022 SITEONE LANDSCAPE SUPPLY 122839857-001 SOLENOID FOR MT VERNON PARKWAY 08/26/2022 E 16-900-220-000-000 113.01 113.01 113.01 79385 09/08/2022 SPARKLETTS 16179154 082722 SEP 2022 WATER FILTRATION SYSTEM 08/27/2022 E 10-190-238-000-000 97.83 97.83 97.83 79386 09/08/2022 TIME WARNER CABLE 0228510082522 CITY HALL INTERNET - AUG-SEP 22 08/25/2022 E 10-190-238-000-000 129.98 129.98 0153825082322 SR CENTER INTERNET - HSD3 - AUG-SEP 2022 08/23/2022 E 10-805-238-000-000 99.99 99.99 229.97 C.4.b Packet Pg. 40 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total MAINTENANCE FEE 79387 09/08/2022 UNDERGROUND SERVICE ALERT 820220311 SEP 2022 MONTHLY DATABASE 09/01/2022 E 16-900-220-000-000 60.75 60.75 60.75 79388 09/08/2022 VERIZON WIRELESS 9914251300 ALPR CARD LINE CHARGES JUL-AUG 2022 08/23/2022 E 10-190-235-000-000 190.05 190.05 190.05 C.4.b Packet Pg. 41 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total 79389 09/15/2022 ARROWHEAD CREDIT UNION AUG2022 VISA AUG-SEP 2022 VISA CHARGES 09/02/2022 E 10-110-210-000-000 OFFICE SUPPLIES 24.99 E 10-110-270-000-000 TRAINING 50.00 E 10-120-210-000-000 OFFICE SUPPLIES 407.76 E 10-120-220-000-000 MTRLS & SUPPLIES 40.95 E 10-125-210-000-000 OFFICE SUPPLIES 2,483.70 E 10-125-220-000-000 MTRLS & SUPPLIES 65.00 E 10-140-210-000-000 OFFICE SUPPLIES 1,804.44 E 10-140-270-000-000 CONFERENCE 866.92 E 10-172-210-000-000 OFFICE SUPPLIES 1,913.01 E 10-172-270-000-000 CONFERENCE 375.00 E 10-172-272-000-000 VEHICLE MAINT 485.55 E 10-175-210-000-000 OFFICE SUPPLIES 537.05 E 10-175-218-000-000 MTRLS & SUPPLIES 362.78 E 10-175-245-000-000 MAINT OF GROUNDS 112.87 E 10-175-246-000-000 MAINT OF EQUIP 30.16 E 10-175-272-000-000 VEHICLE MAINT 846.69 E 10-185-210-000-000 OFFICE SUPPLIES 416.37 E 10-185-268-000-000 CONFERENCE 781.21 E 10-185-272-000-000 VEHICLE MAINT 122.25 E 10-190-210-000-000 OFFICE SUPPLIES 277.69 E 10-190-211-000-000 POSTAGE 15.25 E 10-190-220-000-000 MTRLS & SUPPLIES 585.55 E 10-190-235-000-000 COMMUNICATIONS 514.76 E 10-190-265-000-000 SUBSCRIPTION 192.87 E 10-195-245-000-000 MTRLS & SUPPLIES 90.95 E 10-370-210-000-000 OFFICE SUPPLIES 407.76 E 10-380-210-000-000 OFFICE SUPPLIES 203.88 E 10-450-245-000-000 MTRLS & SUPPLIES 475.64 E 10-450-246-000-000 MTRLS & SUPPLIES 168.69 14,659.74 14,659.74 C.4.b Packet Pg. 42 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total CODE FIDELITY NATIONAL TITLE COPIES OF THE ART OF WAR SOFTWARE 79390 09/15/2022 AT AND T SEP2022 AT&T SEP2022 AT&T 09/01/2022 E 10-190-235-000-000 1,731.31 E 10-450-235-000-000 267.44 E 10-805-235-000-000 497.09 E 10-808-235-000-000 525.42 3,021.26 3,021.26 79391 09/15/2022 CIVIC PLUS 239522 SEP 2022 - ONLINE HOSTING OF MUNICIPAL 09/09/2022 E 10-125-250-000-000 198.72 198.72 198.72 79392 09/15/2022 FASTSIGNS SAN BERNARDINO INV-21707 NO HIKING SIGN FOR WESTWOOD ST 08/18/2022 E 94-175-229-000-000 157.69 157.69 157.69 79393 09/15/2022 FEDEX 7-878-03000 EXPRESS MAILING SERVICES - 09/08/2022 E 10-190-211-000-000 42.55 42.55 42.55 79394 09/15/2022 MICHELLE FUENTES REIMB MF REIMBURSE MICHELLE FUENTES FOR (17) 09/14/2022 E 10-120-220-000-000 91.46 91.46 91.46 79395 09/15/2022 GOVPILOT 2022-1472 FY2022-23 CODE/BUILDING/PLANNING 09/01/2022 E 10-172-250-000-000 15,191.00 E 10-187-246-000-000 15,191.00 E 10-370-250-000-000 21,382.00 51,764.00 51,764.00 C.4.b Packet Pg. 43 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total SUBSCRIPTION CITY HALL & SENIOR CENTER 79396 09/15/2022 DARCY MCNABOE SEP2022 DM HLTH REIMSEP 2022 DM HEALTH REIMBURSEMENT 09/07/2022 E 10-110-142-000-000 672.79 672.79 672.79 79397 09/15/2022 MIDAMERICA ADMIN RETIREMENT PAYDATE 09082022 ARSPAYDATE 09082022 ARS RETIREMENT 09/08/2022 B 10-022-68-00 197.25 197.25 197.25 79398 09/15/2022 GOVERNMENTJOBS COM INC NEOGOVINV-27911 FY2022-23 GOVERNMENTJOBS.COM 08/18/2022 E 10-120-210-000-000 978.17 978.17 978.17 79399 09/15/2022 ODP BUSINESS SOLUTIONS LLC 264394562001 FY2022-23 OFFICE SUPPLIES 08/30/2022 E 10-190-210-000-000 54.25 54.25 54.25 79400 09/15/2022 SB COUNTY SHERIFF 22017 SEP 2022 LAW ENFORCEMENT SERVICES 08/30/2022 E 10-410-255-000-000 5,441.67 E 10-410-256-000-000 173,391.00 E 14-411-256-000-000 13,333.33 192,166.00 192,166.00 79401 09/15/2022 SPARKLETTS 9637116 090122 AUG 2022 BOTTLED WATER SERVICES FOR 09/01/2022 E 10-190-238-000-000 330.51 E 10-805-238-000-000 65.20 395.71 395.71 C.4.b Packet Pg. 44 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total MAINTENANCE MAINTENANCE SEP-OCT 2022 SEP-OCT 2022 LEAGUE OF CITIES CONVENTION 79402 09/15/2022 ST FRANCIS ELECTRIC 22147704 AUG 2022 RESPONSE TRAFFIC SIGNAL 08/31/2022 E 16-510-255-000-000 1,623.00 1,623.00 22147703 AUG 2022 ROUTINE TRAFFIC SIGNAL 08/31/2022 E 16-510-255-000-000 557.55 557.55 2,180.55 79403 09/15/2022 TIME WARNER CABLE 0262246090322 RICHARD ROLLINS PARK INTERNET - 09/03/2022 E 10-450-238-000-000 319.98 319.98 0007245090722 SR CTR CABLE INTERNET BLDG 3 - 09/07/2022 E 10-805-238-000-000 285.74 285.74 605.72 79404 09/22/2022 A STORAGE PLACE 10/01/2022 - B3334OCTOBER RENT FOR UNIT B3334 09/16/2022 E 10-140-241-000-000 362.00 362.00 10/01/2022 - B15 OCTOBER RENT FOR UNIT B15 09/16/2022 E 10-140-241-000-000 174.00 174.00 536.00 79405 09/22/2022 JEFF ALLEN JA MILEAGE REIMBREIMBURSEMENT FOR MILEAGE FOR 09/13/2022 E 10-110-270-000-000 90.50 90.50 90.50 C.4.b Packet Pg. 45 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total JUL 2022 - SEP 2022 PROJECT TTM 21-01 SHIRTS FOR STAFF 79406 09/22/2022 CA STATE DEPT OF CONSERVATIONSMIP2023-1Q-01 2022-23 SMIP 1ST QUARTER 09/15/2022 R 10-700-01 -2.74 B 23-200-21-00 54.86 52.12 52.12 79407 09/22/2022 CITY NEWSPAPER GROUP 38044 ADVERTISING FOR PLANNING HEARING FOR 09/13/2022 B 23-510-77-00 388.50 388.50 38041 GT 09.15.22 ORD NO. 342 - 2ND READING 09/13/2022 E 10-125-230-000-000 129.50 129.50 38040 GT 09.15.22 ORD NO. 341 - 2ND READING 09/13/2022 E 10-125-230-000-000 103.60 103.60 621.60 79408 09/22/2022 COMPUTERIZED EMBROIDERY CO INC49664 EMBROIDERY OF CITY LOGO ON (7)09/15/2022 E 10-190-220-000-000 90.51 90.51 90.51 79409 09/22/2022 COUNTY OF RIVERSIDE TLMA ADM TL0000016474 JUN 2022 TRAFFIC SIGNAL MONITORING 09/12/2022 E 10-195-245-000-000 797.86 797.86 797.86 79410 09/22/2022 DATA TICKET INC 072022SPCHG GT CITATION APPEAL PROCESSING FEES JUL 2022 09/07/2022 E 10-140-255-000-000 255.00 255.00 255.00 C.4.b Packet Pg. 46 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total INSURANCE TRACT 18070 JADEN SERVICES 79411 09/22/2022 DENTAL HEALTH SERVICES 2249744 OCT 2022 EMPLOYEE PAID DENTAL 09/16/2022 B 10-022-70-00 420.85 420.85 420.85 79412 09/22/2022 EZ SUNNYDAY LANDSCAPE 3485 SEP 2022 LANDSCAPING SERVICES - PARKS 09/16/2022 E 10-195-245-000-000 200.00 E 10-450-245-000-000 3,665.00 E 26-600-255-000-000 150.00 E 26-601-255-000-000 80.00 4,095.00 3484 SEP 2022 LANDSCAPING SERVICES - 09/16/2022 E 26-605-255-000-000 750.00 750.00 4,845.00 79413 09/22/2022 HINDERLITER DE LLAMAS ASSOC SIN021056 JUL-SEP 2022 SALES TAX & AUDIT SERVICES 08/26/2022 E 10-140-250-000-000 1,390.63 1,390.63 1,390.63 79414 09/22/2022 WILLIAM HUSSEY SEP2022 BH HLTH REIMSEP 2022 BH HEALTH REIMBURSEMENT 09/16/2022 E 10-110-142-000-000 282.15 282.15 282.15 79415 09/22/2022 KONICA MINOLTA BUS. SOLUTIONS 9008854480 08/15/22-09/14/22 CITYWIDE PHOTOCOPIER 09/14/2022 E 10-190-212-000-000 342.72 342.72 342.72 C.4.b Packet Pg. 47 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total PV SYSTEM GREENS GROUP 79416 09/22/2022 KUUBIX GLOBAL REFUND B00-004-521REFUND BUILDING PERMIT B00-004-521 FOR 09/15/2022 R 10-410-06 87.60 B 23-200-23-00 1.00 88.60 88.60 79417 09/22/2022 LINCOLN NATIONAL LIFE INSURANCLCLN OCT 2022 OCT 2022 LIFE/AD&D/DEP LIFE/WI/LTD 10/01/2022 B 10-022-66-00 641.56 E 10-120-142-000-000 35.25 E 10-125-142-000-000 23.93 E 10-140-142-000-000 28.58 E 10-172-142-000-000 17.36 E 10-175-142-000-000 23.92 E 10-185-142-000-000 10.19 E 10-370-142-000-000 3.41 E 10-450-142-000-000 14.95 E 16-175-142-000-000 9.88 E 65-425-142-000-000 -3.80 805.23 805.23 79418 09/22/2022 MICHAEL BAKER INTERNATIONAL 1157223 PROFESSIONAL SERVICES FOR BRSP - 09/07/2022 B 23-510-39-00 752.25 B 23-510-42-00 2,261.25 3,013.50 3,013.50 79419 09/22/2022 ON SITE COMPUTING 54002715 OCT 2022 IT SERVICES 09/01/2022 E 10-380-250-000-000 6,658.00 6,658.00 6,658.00 C.4.b Packet Pg. 48 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total 54166 DUES SENIOR CENTER CIVIC CENTER 79420 09/22/2022 SO CAL LOCKSMITH 54187 KEYS FOR SECURITY AND KONRAD 08/25/2022 E 10-195-245-000-000 111.50 111.50 54226 SPARE KEY FOR FORD RANGER 08/31/2022 E 10-175-272-000-000 102.36 102.36 KEYS FOR HUMAN RESOURCES OFFICE 08/24/2022 E 10-120-220-000-000 45.74 45.74 54303 KEYS FOR DEBRA'S AND CHRISTINE'S DESKS 09/09/2022 E 10-195-246-000-000 19.35 19.35 278.95 79421 09/22/2022 TEAMSTERS LOCAL 1932 014 OCTOBER 2022 EMPLOYEE PAID MEMBERSHIP 09/14/2022 B 10-022-72-00 464.98 464.98 464.98 79422 09/22/2022 TERMINIX 424574034 SEP 2022 PEST CONTROL SVCS FOR 09/07/2022 E 10-805-245-000-000 100.00 100.00 424573593 SEP 2022 PEST CONTROL SVCS FOR 09/07/2022 E 10-195-245-000-000 100.00 100.00 200.00 C.4.b Packet Pg. 49 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total DISTRICT ENGINEER REPORT (10/01/22-12/31/22) 147133565 2ND QTR (10/01/22-12/31/22) 79423 09/22/2022 WILLDAN 010-52442 FY2022-23 LANDSCAPING AND LIGHTING 09/12/2022 E 26-600-250-000-000 331.08 E 26-601-250-000-000 331.07 E 26-602-250-000-000 331.07 E 26-603-250-000-000 331.07 E 26-604-250-000-000 331.07 E 26-605-250-000-000 331.07 E 26-606-250-000-000 331.07 2,317.50 002-27299 AUG 2022 PLAN CHECK/ INSPECTION SVCS 09/01/2022 E 10-172-250-100-000 1,870.00 1,870.00 4,187.50 79424 09/29/2022 ADT SECURITY SERVICES 147133564 2ND QTR2ND QUARTER SECURITY MONITORING 09/08/2022 E 10-195-247-000-000 402.38 402.38 2ND QUARTER SECURITY MONITORING 09/08/2022 E 10-195-247-000-000 242.43 242.43 644.81 C.4.b Packet Pg. 50 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total PROPERTY PW - ENGINEERING FREEDOM PARK 9/10/2022 TROUBLESHOOT AND RESET 79425 09/29/2022 ALESHIRE AND WYNDER LLP 70712 AUG 2022 LEGAL SERVICES - CITY REAL 09/23/2022 E 10-160-250-000-000 6,345.00 6,345.00 70708 AUG 2022 LEGAL SERVICES - LITIGATION 09/23/2022 E 10-160-250-100-000 5,592.75 5,592.75 70707 AUG 2022 LEGAL SERVICES - GENERAL 09/23/2022 E 10-160-250-000-000 3,727.50 3,727.50 70710 AUG 2022 LEGAL SERVICES - PLANNING 09/23/2022 E 10-160-250-000-000 3,290.00 3,290.00 70713 AUG 2022 LEGAL SERVICES - SUNNY DAYS 09/23/2022 B 10-015-61-00 1,232.00 1,232.00 70711 AUG 2022 LEGAL SERVICES -09/23/2022 E 10-160-250-000-000 822.50 822.50 21,009.75 79426 09/29/2022 DOREEN BARTELS DB REFUND REFUND DEPOSIT FOR (4) YARD SALE SIGNS 09/27/2022 B 23-515-22-00 40.00 40.00 40.00 79427 09/29/2022 MARTIN CAREY MC REFUND REFUND PARK DEPOSIT FOR VETERAN'S 09/27/2022 B 23-515-22-00 50.00 50.00 50.00 79428 09/29/2022 CHAMPION FIRE SYSTEMS INC 64305 FY2022-23 Q1 CITY HALL ALARM 09/26/2022 E 10-195-246-000-000 144.00 144.00 144.00 C.4.b Packet Pg. 51 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total DRILL/BREAKER 79429 09/29/2022 ALFRED CHAVEZ AC REFUND REFUND DEPOSIT FOR (2) YARD SALE SIGNS 09/27/2022 B 23-515-22-00 20.00 20.00 20.00 79430 09/29/2022 TAMARA CONTRERAS TC REFUND REFUND DEPOSIT FOR (2) YARD SALE SIGNS 09/27/2022 B 23-515-22-00 20.00 20.00 20.00 79431 09/29/2022 CROWDER SUPPLY CO LLC 202821 PURCHASE OF A COBRA COMBI 09/09/2022 E 94-175-229-000-000 5,529.40 5,529.40 5,529.40 79432 09/29/2022 EZ SUNNYDAY LANDSCAPE 3495 REPAIR LEAK AT RICHARD ROLLINS PARK 09/14/2022 E 10-450-245-000-000 680.00 680.00 680.00 79433 09/29/2022 DIANE GENEL DG REFUND REFUND DEPOSIT FOR (2) YARD SALE SIGNS 09/27/2022 B 23-515-22-00 20.00 20.00 20.00 79434 09/29/2022 FRANK GONZALES FG REFUND REFUND DEPOSIT FOR (3) YARD SALE SIGNS 09/27/2022 B 23-515-22-00 30.00 30.00 30.00 79435 09/29/2022 KONICA MINOLTA 40835896 SEP-OCT 2022 RENT FOR (2) PHOTOCOPIERS 09/21/2022 E 10-190-212-000-000 258.60 258.60 258.60 79436 09/29/2022 SAVANNAH MARTINEZ SM REFUND REFUND DEPOSIT FOR (4) YARD SALE SIGNS 09/27/2022 B 23-515-22-00 40.00 40.00 40.00 C.4.b Packet Pg. 52 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total - 09/13/2022 INTERIM FINANCE DIRECTOR ROLLINS PARK 9/10/2022 79437 09/29/2022 DARCY MCNABOE OCT2022 DM HLTH REIMOCT 2022 DM HEALTH REIMBURSEMENT 09/27/2022 E 10-110-142-000-000 672.79 672.79 672.79 79438 09/29/2022 OCCUPATIONAL HEALTH CENTERS CA76639472 PRE-EMPL PHYSICAL: JUDITH GARCIA 09/13/2022 E 10-190-224-000-000 175.50 175.50 175.50 79439 09/29/2022 ODP BUSINESS SOLUTIONS LLC 264861152001 FY2022-23 OFFICE SUPPLIES 09/12/2022 E 10-190-210-000-000 185.81 185.81 185.81 79440 09/29/2022 ON SITE COMPUTING 53009301 VOIP PHONE INSTALLATION AND MIGRATION 09/23/2022 E 10-380-250-000-000 4,995.00 4,995.00 4,995.00 79441 09/29/2022 SYLVIA ROBLES SEP2022 SR MED REIMBSEP 2022 SR MEDICARE REIMBURSEMENT 09/27/2022 E 10-110-142-000-000 170.10 170.10 170.10 79442 09/29/2022 ROGERS ANDERSON MALODY SCOTT71253 AUG 2022 PROFESSIONAL SERVICES FOR 08/31/2022 E 10-120-250-000-000 9,000.00 9,000.00 9,000.00 79443 09/29/2022 IRENE TARANGO 9272022 REFUND PARK DEPOSIT FOR RICHARD 09/27/2022 B 23-515-22-00 50.00 50.00 50.00 C.4.b Packet Pg. 53 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total INSURANCE 79444 09/29/2022 TIME WARNER CABLE 0197046091622 CITY HALL CABLE - SEP-OCT 2022 09/16/2022 E 10-190-238-000-000 109.53 109.53 109.53 79445 09/29/2022 WILLDAN 00336686 AUG 2022 INTERIM CITY ENGINEER SERVICES 09/07/2022 E 10-175-250-000-000 8,820.00 8,820.00 00417682 AUG 2022 PERMIT PUBLIC WORKS INSPECTION 09/19/2022 E 10-172-250-100-000 882.00 882.00 9,702.00 79446 09/29/2022 ZORO TOOLS INC INV11545951 MAINTENANCE UNIFORMS AND COLD PATCH 09/16/2022 E 10-175-210-000-000 -82.66 E 10-175-218-000-000 134.46 E 10-175-257-020-000 1,596.31 1,648.11 INV11567797 MAINTENANCE UNIFORMS 09/22/2022 E 10-175-218-000-000 577.25 577.25 INV11567000 MAINTENANCE UNIFORMS 09/22/2022 E 10-175-218-000-000 127.99 127.99 INV11561072 MAINTENANCE UNIFORMS 09/21/2022 E 10-175-218-000-000 51.05 51.05 2,404.40 508458 09/28/2022 AMERICAN FIDELITY ASSURANCE COD508458 OCT 2022 - EMPLOYEE CANCER & ACCIDENT 10/01/2022 B 23-250-20-00 283.56 283.56 283.56 C.4.b Packet Pg. 54 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total 8/25/2022 09/08/2022 08/12/2022 #1002197524 2510009 09/08/2022 SO CA GAS COMPANY AUG 2022 GAS SERVICEAUG 2022 GAS SERVICE 09/08/2022 E 10-190-238-000-000 47.34 E 10-805-238-000-000 94.80 142.14 142.14 16866628 09/12/2022 PUBLIC EMPLOYEES RETIREMENT PAYDTE 08252022 PERSRETIREMENT CONTRIBUTIONS FOR PAY DATE 08/25/2022 B 10-022-62-00 7,804.55 7,804.55 7,804.55 16902872 09/28/2022 PUBLIC EMPLOYEES RETIREMENT PAYDTE 09082022 PERSRETIREMENT CONTRIBUTIONS FOR PAY DATE 09/08/2022 B 10-022-62-00 7,520.61 7,520.61 7,520.61 16902890 09/12/2022 PUBLIC EMPLOYEES RETIREMENT PAYDTE 08122022 PERSRETIREMENT CONTRIBUTIONS FOR PAY DATE 08/12/2022 B 10-022-62-00 4.21 4.21 4.21 16935902 09/12/2022 CALPERS 457 PLAN PAYDATE 08252022 457EFT PAYMENT CALPERS ACH CONFIRM 08/25/2022 B 10-022-63-00 1,430.00 B 10-022-64-00 147.93 1,577.93 1,577.93 C.4.b Packet Pg. 55 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total ACH 1002208204 LATE FILING J. JAIMES PR ENDING 8/9/2022 #1002208237 16939467 09/28/2022 CA PUB EMPLOYEES RETIRE SYSTEM10012022 HPERS OCT 2022 PERS HEALTH INSURANCE 10/01/2022 B 10-022-61-00 4,970.88 E 10-120-142-000-000 2,146.06 E 10-125-142-000-000 723.02 E 10-140-142-000-000 2,169.06 E 10-172-142-000-000 578.42 E 10-175-142-000-000 1,879.85 E 10-185-142-000-000 1,446.04 E 10-190-142-000-000 3,232.38 E 10-370-142-000-000 1,446.04 E 10-450-142-000-000 1,590.64 E 16-175-142-000-000 1,012.24 E 65-425-142-000-000 723.02 21,917.65 21,917.65 16943195 09/28/2022 PUBLIC EMPLOYEES RETIREMENT 16943195 RETIREMENT CONTRIBUTIONS REPORTING - 09/28/2022 E 10-190-220-000-000 200.00 200.00 200.00 16949769 09/28/2022 CALPERS 457 PLAN PAYDATE 09082022 457EFT PAYMENT CALPERS ACH CONFIRM 09/08/2022 B 10-022-63-00 1,480.00 B 10-022-64-00 147.93 1,627.93 1,627.93 C.4.b Packet Pg. 56 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) Invoice # Check Register CITY OF GRAND TERRACE As of 9/30/2022 Check #Date Vendor Invoice Description Inv. Date Amount Paid Check Total 25930521 09/02/2022 SO CA EDISON COMPANY AUG 2022 EDISONAUG 2022 ENERGY USAGE 09/01/2022 E 10-172-238-000-000 178.54 E 10-175-238-000-000 178.55 E 10-190-238-000-000 9,004.36 E 10-450-238-000-000 1,648.53 E 16-510-238-000-000 6,769.21 E 26-600-238-000-000 65.63 E 26-601-238-000-000 53.32 E 26-602-238-000-000 73.83 E 26-603-238-000-000 12.31 E 26-604-238-000-000 56.95 E 26-605-238-000-000 45.79 18,087.02 18,087.02 83528494 09/07/2022 WEX BANK 83528494 AUG-SEP 2022 VEHICLE FUEL CHEVRON 09/06/2022 E 10-172-272-000-000 30.00 E 10-175-272-000-000 1,629.36 E 10-185-272-000-000 503.76 E 65-425-272-000-000 1,086.54 3,249.66 3,249.66 601584377 09/27/2022 CENTURYLINK 601584377 SEP 2022 PHONE & INTERNET SERVICES 09/17/2022 E 10-190-235-000-000 1,537.25 1,537.25 1,537.25 C.4.b Packet Pg. 57 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) C.4.b Packet Pg. 58 At t a c h m e n t : S e p C h e c k R e g i s t e r ( S e p t e m b e r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 8 4 3 , 2 1 5 . 5 1 ) AGENDA REPORT MEETING DATE: November 8, 2022 Council Item TITLE: Community Benefit Fund Grant Award to the Grand Terrace Cars & Coffee Santa Claus Toy Drive Cruise in the Amount of $2,000.00 PRESENTED BY: Christine Clayton, Finance Manager RECOMMENDATION: Approve the Community Benefit Fund grant application in the amount of $2,000 to the Grand Terrace Cars & Coffee Santa Claus Toy Drive Cruise to be held on Friday December 9, 2022. 2030 VISION STATEMENT: This staff report supports the following City Council Goals: • Goal #1 - Ensure Our Fiscal Viability, through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations; and • Goal #4 - Develop and Implement Successful Partnerships through productive collaboration with community groups, youth programs and senior organizations. BACKGROUND: In past fiscal years, the City Council has approved the use of funds for the establishment of the Community Benefits Fund Grant Program. The purpose of the Community Benefits Fund Grant Program is to provide funding for local youth programs, community events, community fee waivers, and be used as an economic development tool for small business development in the City. Each year, part of these funds has been designated for the City’s annual Light Up Grand Terrace event. For Fiscal Year 2022-23, the City Council has approved the use of $20,000 toward community benefit funded programs and activities. Various youth and senior program activities have benefited from the Community Benefits Fund including the Foundation of Grand Terrace, the REC Center, several youth sports leagues, and the Friends of the Grand Terrace Library. Attachment A provides a summary of awarded grants by fiscal year and the recipients of said grants awarded in each fiscal year. C.5 Packet Pg. 59 DISCUSSION: I. Application received from the Grand Terrace Cars & Coffee Santa Claus Toy Drive The Organization’s mission is to give back to the community in various ways. The Santa Claus Toy Drive Cruise collects toys from residents for an organization helping mothers recovering from alcohol, drug, and other abuses. The toys are for their children. Below summarizes the current application submitted by the Organization: Project Title: Grand Terrace Cars & Coffee Santa Claus Toy Drive Cruise Project Activity: It is a one-day event on Friday, December 9, 2022. They are going to cruise a defined route through the City with the Fire Department and Santa Claus to collect toys from residents at designated collection centers along the cruise route. Public Purpose: Toys collected are provided to Sick N Tired Sobriety Center that is a charity that serves mothers who are recovering from drug, alcohol, and other abuses. Toys collected are distributed to their children who may not have a Christmas Holiday without these donations. Amount Requested: $2,000.00 Utilization of Funds: Funds would be utilized to pay for the City’s permit fees and other costs associated with the event RECOMMENDATION: Staff recommends that the City Council: 1. Approve the Community Benefit Fund grant application in the amount of not to exceed $2,000 to the Grand Terrace Cars & Coffee Santa Claus Toy Drive Cruise to be held on Friday December 9, 2022. Upon City Council approval, the applicant will comply with the following, if they have not already done so: 1. Issue the City of Grand Terrace an invoice for the grant amount; 2. Ensure that the City is mentioned/included as a sponsor in any material C.5 Packet Pg. 60 advertising the activity or event; 3. Complete a W-9 form for reporting purposes; and 4. Submit receipts within 30 days of the event/activity showing that the funds provided were used for their original intent. Attached is the application received from the Grand Terrace Cars & Coffee. FISCAL IMPACT: Funds in the amount of $20,000.00 have been approved for the program and established in the Community Benefits Fund (Fund 61). If approved, the table below will show the balances of each category remaining in the fund: FY2022-23 Community Benefits Fund Fund No. Acct. No. Account Title Approved Budget Awarded Grants Balance as of Oct- 2021 Proposed Grant Awards Revised Balance 61 461- 100 Non-Profit /Service Organizations $10,000 $310 $9,690 ($2,000) $7,690 TOTAL $10,000 $310 $9,690 ($2,000) $7,690 ATTACHMENTS: • CBF - Toy Drive Cruise (PDF) • Community Benefits Fund Award History (XLSX) APPROVALS: Christine Clayton Completed 10/25/2022 4:59 PM Finance Completed 10/25/2022 5:01 PM City Manager Completed 10/31/2022 12:32 PM City Council Pending 11/08/2022 6:00 PM C.5 Packet Pg. 61 CITY OF GRAND TERRACE COMMUNITY BENEFITS FUND (GT -CBF) ORGANIZATION INFORMATION Organization Name: Grand Terrace Cars & Coffee Santa Claus Toy Drive Cruise Organization Mission: Our mission is to give back to the community in various ways. The Santa Claus Toy Drive Cruise collects toys from residents for an oranizaion helping mothers recovering from alcohol, drug and other abuses. The toys are for their children. Organization Contact #1: Name: Johan Gallo Title: Coordinator Mailing Address: 22808 De Soto St. City, State, Zip Code Grand Terrace, CA 92313 Phone & E-mail: Phone: 9494334513 E-mail: Gallojm1@outlook.com Organization Contact #2: Name: William Cecil Title: Assistant Coordinator Mailing Address: 2553 Lomita Lane City, State, Zip Code Colton, Ca., 92324 Phone & E-mail: Phone: 9095282248 E-mail: Wcecil2004@yahoo.com Have you ever applied for funding through the City’s Community Benefit FUND (CBH) before? Yes No √ If yes, please list each time you’ve applied, the outcome, whether you were granted funding or not, the amount your organization originally requested and the amount approved, if any. Purpose of Prior Funding Requests (If any) Request Date Amount Requested Amount Approved (if any) 1. 2. 3. 4. 5. Date of Application: October 4, 2022 Requested Amount: $2,000.00 City of Grand Terrace, 22795 Barton Road, Grand Terrace, CA 92313-5295 www.grandterrace-ca.gov C.5.a Packet Pg. 62 At t a c h m e n t : C B F - T o y D r i v e C r u i s e ( C B F - S a n t a C l a u s T o y D r i v e C r u i s e - 2 0 2 2 ) CITY OF GRAND TERRACE COMMUNITY BENEFITS FUND (GT -CBF) PROJECT INFORMATION Project/Activity Title: Grand Terrace Cars & Coffee Santa Claus Toy Drive Cruise Project/Activity Description (description of event the organization is seeking funding for) We are going to hold the second annual Grand Terrace Cars & Coffee Santa Claus Toy Drive Cruise. On December 9th We are going to cruise a defined route through our city with the Fire Department and Santa Claus to collect toys from residents at designated collection centers along the cruise route. Describe how the project/activity is for a public purpose and benefits the residents and or community of Grand Terrace Toys collected are proveded to Sick N Tired Sobriety Center that’s a charity thats serves mothers who are recovering from drug, alcohol and other abuses, Toys collected are distributed to their children who may not have a Christmas Holday without these donations. .. Project/Activity Target Population: Youth √ Seniors √ Women √ Low-Income √ Businesses √ Disabled Persons √ Yes √ Entire Community √ Project/Activity Date: December 9th from 7 pm to 9 pm – 6 pm for stagging vehicles Location of Project/Activity: Grand Terrace Road Northside across from Terrace Hills Elementary Detailed description of how the funds will be utilized. The funds will be used to cover the city’s permit fees and other costs associated with the one eveng’s event. Negative Impact should funding not be approved: Our sponsors have offered to cover the expenses. Given the impact of the Covid19 shutdown on all their businesses, we don’t want to burden them with these costs. If we can’t obtain the funds we will cancel our plans. Submit completed application to: City of Grand Terrace City Manager’s Office 22795 Barton Road Grand Terrace, CA 92313-5295 Attn: Mr. Konrad Bolowich City of Grand Terrace, 22795 Barton Road, Grand Terrace, CA 92313-5295 www.grandterrace-ca.gov C.5.a Packet Pg. 63 At t a c h m e n t : C B F - T o y D r i v e C r u i s e ( C B F - S a n t a C l a u s T o y D r i v e C r u i s e - 2 0 2 2 ) Title 2015-16 2016-17 2017-18 2018-19 2019-20 2021-22 2022-23 TOTAL 2022-23 TOTAL TO DATE Proposed in Nov-2022 REVISED YOUTH / SCHOOL ORGANIZATIONS Grand Terrace Community Basketball 1,136$ -$ -$ 1,450$ -$ -$ 2,586$ -$ 2,586$ Grand Terrace High School Football Boosters - - - 2,000 2,000 - 4,000 - 4,000 Grand Terrace High School Legacy Regiment Boosters - - - 2,000 - - 2,000 - 2,000 Grand Terrace High School Boys Basketball - - - - 2,000 - 2,000 - 2,000 Grand Terrace High School Titan Wrestling Team - - - - 1,997 - 2,000 3,997 - 3,997 Grand Terrace Little League 2,000 - 2,000 - - - 4,000 - 4,000 Grand Terrace Youth Football & Cheer - 4,000 2,000 - - - 6,000 - 6,000 Terrace View Elementary PTA 1,000 671 1,517 700 - 1,805 1,725 7,418 - 7,418 4,136$ 4,671$ 5,517$ 6,150$ 5,997$ 1,805$ 3,725$ 32,001$ -$ 32,001$ NON-PROFIT / SERVICE ORGANIZATIONS American Cancer Society -$ -$ 2,000$ -$ -$ -$ 2,000$ -$ 2,000$ Drug Alternative Program - 2,000 - - - - 2,000 - 2,000 Foundation of Grand Terrace 2,350 2,000 1,830 - - 2,000 8,180 - 8,180 Friends of Grand Terrace Library 3,750 2,000 2,000 4,000 - - 11,750 - 11,750 Grand Terrace Lions Club - 620 - - - - 620 - 620 Sheriff’s Central Station Explorer Program - - - 2,000 - - 2,000 - 2,000 The REC Center 2,187 310 - 3,100 - - 5,597 - 5,597 Grand Terrace Cars & Coffee - - - - - 2,000 2,000 2,000 4,000 Christ the Redeemer Catholic Church - - - - - - 310 310 310 Family Service Association - - - - 2,000 - - 2,000 - 2,000 8,287$ 6,930$ 5,830$ 9,100$ 2,000$ 4,000$ 310$ $36,457 2,000$ 38,457$ TOTAL 12,423$ 11,601$ 11,347$ 15,250$ 7,997$ 5,805$ 4,035$ 68,458$ 2,000$ 70,458$ City of Grand Terrace Community Benefit Grant Awards GRANT AWARD HISTORY as of June 30, 2022 and Approved & Proposed Applications for November 22 C.5.b Packet Pg. 64 At t a c h m e n t : C o m m u n i t y B e n e f i t s F u n d A w a r d H i s t o r y ( C B F - S a n t a C l a u s T o y D r i v e C r u i s e - 2 0 2 2 ) AGENDA REPORT MEETING DATE: November 8, 2022 Council Item TITLE: Second Reading and Adoption of Ordinance of the City Council of Grand Terrace, California, Amending Title 18 of the Grand Terrace Municipal Code, Establishing Art in Public Places Requirements and a Related Environmental Determination Pursuant to CEQA Regulation Section 15061(B)(3) PRESENTED BY: Haide Aguirre, Senior Planner RECOMMENDATION: 1) Direct the City Attorney to Read the title of the Ordinance, waive further reading, and adopt AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, STATE OF CALIFORNIA, FINDING ZONING CODE AMENDMENT 22-04 EXEMPT FROM CEQA PURSUANT TO SECTION 15061(B)(3) AND AMENDING TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE BY AMENDING CHAPTER 18.06 (DEFINITIONS), AND ADDING CHAPTER 18.81 ESTABLISHING ART IN PUBLIC PLACES REQUIREMENTS 2030 VISION STATEMENT: This item promotes Our Mission Statement: To preserve and protect our community and its exceptional quality of life through thoughtful planning, within the constraints of fiscally responsible government. Goal No. 3: To promote economic development by updating zoning and development codes in preparation of future development and attract and retain businesses. BACKGROUND: The City of Grand Terrace desires to implement an Art in Public Places Program. Art located in public places has the power to add beauty, character, and a sense of history to the city. It also provides a diverse and culturally rich environment, enhances the quality of live, educates the public, and becomes an economic asset by attracting business and visitors. Grand Terrace has multiple opportunities for development and staff is currently working on future potential projects that will bring more housing, business, and job opportunities. Existing developments along our main corridor (“Barton Road”) have not been required to include an artistic component as part of the project’s design. In order to ensure that public art is present throughout the City, it is necessary to require all new development C.6 Packet Pg. 65 in the City of Grand Terrace to include an element of public art; or where appropriate, contribute to a City fund for public art, in an amount to be determined by the City Council, in lieu of providing said art. Incorporating an art component requirement to all future developments would revitalize the City’s image, enhance the visual character of the community, improve the quality of life, and promote healthy living by drawing residents, visitors, and workers to the outdoor space. On June 16, 2022, the Planning Commission Site and Architectural Review Board conducted a duly noticed public hearing and adopted a Resolution voting unanimously 3-0 recommending City Council approval of an Ordinance establishing Art in Public Places Requirements. On October 25, 2022, the City Council conducted a duly noticed public hearing and voted unanimously 5-0 adopting an Ordinance amending Title 18 establishing Art in Public Places Requirements. No changes have been made to the proposed Ordinance since its introduction. The Ordinance is now ready for second reading and adoption by the City Council ENVIRONMENTAL: The proposed zoning code amendment is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines, Section 15061(b)(3), which states the activity is covered by the general rule that CEQA applies only to projects [that] have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Amending the Grand Terrace Code to include a public art component would not result in any significant environmental impacts due to the narrow scope of the project. Future development projects subject to the proposed ordinance would be reviewed for potential environmental impacts, including any impacts related to the design and placement of public art components. FISCAL IMPACT: There will be no expenditure on the part of the city to adopt this ordinance. ATTACHMENTS: • Ordinance (second reading)_10.20.2022 (DOC) • Art in Public Places-Exhibit A_6.8.2022 Final Draft (DOCX) APPROVALS: Haide Aguirre Completed 11/02/2022 2:18 PM City Manager Completed 11/02/2022 3:06 PM C.6 Packet Pg. 66 City Council Pending 11/08/2022 6:00 PM C.6 Packet Pg. 67 ORDINANCE NO. ___ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, STATE OF CALIFORNIA, FINDING ZONING CODE AMENDMENT 22-04 EXEMPT FROM CEQA PURSUANT TO SECTION 15061(B)(3) AND AMENDING TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE BY AMENDING CHAPTER 18.06 (DEFINITIONS), AND ADDING CHAPTER 18.81 ESTABLISHING ART IN PUBLIC PLACES REQUIREMENTS WHEREAS, the City of Grand Terrace (“City”) adopted a zoning code, which has been amended from time to time; and WHEREAS, pursuant to Sections 65800 and 65850 of the California Government Code, the City may adopt ordinances to regulate the use of buildings in compliance with the California Government Code; and WHEREAS, the proposed Zone Code Amendment 22-04 to the Municipal Code is consistent with the goals and policies of the City of Grand Terrace General Plan; and WHEREAS, this Ordinances proposes to amend the Municipal Code, Title 18 (Zoning), Chapter 18.06 (Definitions) to include “Art in Public Places” related definitions and add a Chapter 18.81 establishing Art in Public Places requirements; and WHEREAS, the City Council has determined that public art is a critical element of providing a diverse and culturally rich environment to residents and visitors to Grand Terrace that promotes the general public welfare; and WHEREAS, a well-conceived work of art can increase the value of a development project, help to lease space more quickly, enhance the corporate image of the community, promote cultural tourism, and provide a visible and lasting contribution to the community in return for the ability to build; and WHEREAS, in order to ensure that public art is present throughout the community it is necessary to require that all new development in the City of Grand Terrace include an element of public art; or where appropriate, contribute to a City fund for public art, in an amount to be determined by the City Council, in lieu of providing said art; and WHEREAS, the City Council takes legislative notice of court cases holding that regulations imposing aesthetic requirements through zoning enactments are valid exercises of the police power and do not constitute impermissible takings merely because they may restrict uses or impose costs in conjunction with the development of property (see e.g., Ehrlich v. City of Culver City, 12 Cal. 4th 854, 885-886 (1996); and C.6.a Packet Pg. 68 At t a c h m e n t : O r d i n a n c e ( s e c o n d r e a d i n g ) _ 1 0 . 2 0 . 2 0 2 2 ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 2 WHEREAS, the requirement that applicants for development projects provide either public art or an in lieu equivalent is a legitimate and valid land use regulation that has been compared by the California courts as akin to traditional land use regulations imposing minimal setbacks, parking and lighting conditions, landscaping requirements and other design conditions; and WHEREAS, the City Council hereby finds that the public art contribution, as provided by this Ordinance, is thus neither a “development fee” subject to the requirements of the California Mitigation Fee Act, California Government Code 66000 et seq, nor a development exaction subject to the heightened scrutiny of relevant rules set forth in Nollan v. California Coastal Commission, 483 U.S. 825 (1987) and Dolan v. City of Tigard, 512 U.S. 374 (1994), but rather, that the public art contribution is a zoning requirement that furthers aesthetic objectives under the authority of the City’s general police power; and WHEREAS, pursuant to Chapter 18.90 (Amendments) of the City of Grand Terrace Municipal Code, the City Council shall hold a public hearing on any proposed amendment to the Zoning Code; and WHEREAS, Zoning Code Amendment 22-04 is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) which states the activity is covered by the general rule that CEQA applies only to projects [that] have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Amending the Grand Terrace Code to include a public art component would not result in any significant environmental impacts due to the narrow scope of the project; and WHEREAS, on June 16, 2022, the Grand Terrace Planning Commission conducted duly noticed public hearings at a regular meeting of the Planning Commission on Zoning Code Amendment 22-04 at the Grand Terrace City Hall Council Chambers located at 22795 Barton Road and concluded the hearing by adopting a Resolution recommending that the City Council determine that this Ordinance is exempt from CEQA pursuant to Section 15061(b)(3) and approve this Ordinance establishing Art in Public Places requirement; and WHEREAS, on October 25, 2022, the City Council conducted a duly noticed public hearing on the ordinance at the Grand Terrace Council Chambers located at 22795 Barton Road, Grand Terrace, California 92313 and conducted second reading on November 8th, 2022, adopting the Ordinance; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred. NOW THEREFORE, THE CITY COUNCIL OF THE CITY GRAND TERRACE DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby specifically finds that all the facts set forth in the above Recitals, are true and correct and, further, incorporated such facts herein. C.6.a Packet Pg. 69 At t a c h m e n t : O r d i n a n c e ( s e c o n d r e a d i n g ) _ 1 0 . 2 0 . 2 0 2 2 ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 3 SECTION 2. Based upon the forgoing and all oral and written testimony by members of the public and City staff (including, but not limited to, staff reports and attachments) made at the public hearing, the City Council hereby finds that the Project is not subject to environmental review pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations because the revisions are regulatory in nature and will not in themselves create impacts to the environment. SECTION 3. Based upon the forgoing and all oral and written testimony by members of the public and City staff (including, but not limited to, staff reports and attachments) made at the public hearing, the City Council specifically finds as follows: 1. Zoning Code Amendment 22-04 will not be detrimental to the health, safety, morals, comfort, or general welfare of the persons residing or working within the City because these amendments establish “Art in Public Places” requirements that will support a diverse and culturally rich environment, educates the public, and becomes an economic asset. In addition, “Art in Public Places” enhances the visual character of the community, improves the quality of live, and promotes healthy living by drawing residents, visitors, and workers to the outdoor space. 2. Zoning Code Amendment 22-04 is consistent with the General Plan and the Municipal Code because these amendments establish “Art in Public Places” requirements that supports the goals and policies of the General Plan programs and policies that will preserve and enhance the quality and character of the city, encourage freeway oriented commercial uses, provide open space identity enhancements, and serve the social and cultural needs of the community. 3. Zoning Code Amendment 22-04 will not be injurious to property or improvements in the neighborhood or within the city. The establishment of a “Art in Public Places” requirements will revitalize the city’s image and enhance the visual character of the community as well as curb the negative impacts of developments in general. SECTION 4. Based upon the forgoing and all oral and written testimony by members of the public and City staff (including, but not limited to, staff reports and attachments) made at the public hearing, the City Council finds this Ordinance, adopting Zone Code Amendment 22-04, is exempt from CEQA pursuant to section 15061(b)(3). SECTION 5. Based upon the forgoing and all oral and written testimony by members of the public and City staff (including, but not limited to, staff reports and attachments) made at the public hearing, the City Council hereby amends Title 18 (Zoning) of the Grand Terrace Municipal Code as provided in Exhibit A, attached hereto and incorporated herein by reference. C.6.a Packet Pg. 70 At t a c h m e n t : O r d i n a n c e ( s e c o n d r e a d i n g ) _ 1 0 . 2 0 . 2 0 2 2 ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 4 SECTION 6. Inconsistencies. Any provision of the Grand Terrace Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 7. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable. The City Council of the City of Grand Terrace declares that it would have adopted all the provisions of this ordinance that remain valid if any provisions of this ordinance are declared invalid. SECTION 8. Effective Date. This Ordinance shall become effective thirty (30) days from and after its adoption. SECTION 9. First read at a regular meeting of the City council held on the 25th day of October, 2022, and adopted the Ordinance after the second reading at a regular meeting held on the 8th day of November, 2022. SECTION 10. Certification. The Mayor shall sign, and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard and this Ordinance shall take effect 30 days after its final passage. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 8th day of November 2020. __________________________ Darcy McNaboe, Mayor ATTEST: Debra L. Thomas, City Clerk APPROVED AS TO FORM: Adrian R. Guerra City Attorney C.6.a Packet Pg. 71 At t a c h m e n t : O r d i n a n c e ( s e c o n d r e a d i n g ) _ 1 0 . 2 0 . 2 0 2 2 ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 01247.0005/796054.5 EXHIBIT A TITLE 18- ZONING ZONING CODE AMENDMENT 22-020 Chapter 18.06 (Definition) of Title 18 (Zoning) of the Grand Terrace Municipal Code is amended by adding the following Sections: 18.06.067 – Art in Public Places "Art in Public Places" means any work of art which is designed for and sited in a space accessible to the public, from a public square to a wall inside a building open to the public. Art in Public Places requirements are provided in Chapter 18.81. Chapter 18.81 (Art in Public Places) is hereby added to Title 18 (Zoning) of the Grand Terrace Municipal Code as follows: CHAPTER 18.81 - ART IN PUBLIC PLACES Sections: 18.81.010 Purpose 18.81.020 Definitions 18.81.030 Applicability 18.81.040 Exceptions 18.81.050 Final City Approval 18.81.060 Art in Public Places Program Requirements 18.81.070 Ownership and Maintenance of Art 18.81.080 Procedures for Art Installed in Private Property; Review Process and Standards 18.81.090 Procedures for Art Donated to the City 18.81.100 Application Submittal Requirements 18.81.110 Removal of Public Art 18.81.120 Annual Report 18.81.130 Authority for Additional Mitigation 18.81.140 Waiver Section 18.81.010 Purpose A. The purpose of this chapter is to expand the opportunities for citizens of the City of Grand Terrace to experience public art resulting from the creative expression of its visual artists in Public Places throughout the City. A standard is hereby established to direct the inclusion of works of art in new Development Projects and establishing a fund used solely for the creation, purchase, installation, security, and maintenance of art in public spaces throughout the City. C.6.b Packet Pg. 72 At t a c h m e n t : A r t i n P u b l i c P l a c e s - E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 01247.0005/796054.5 2 B. The City Council finds and declares as follows: 1. Cultural and artistic resources enhance the quality of life for individuals living in, working in, and visiting the City. 2. Balanced development of cultural and artistic resources preserves and improves the quality of the urban environment and increases real property values. 3. Development of cultural and artistic assets should be finance by those whose development and revitalization diminish the availability of the community’s resources for those opportunities and contribute to community urbanization. 4. Establishment of this Art in Public Places Program will promote the general welfare through balancing the community’s physical growth and revitalization and is cultural and artistic resources. Section 18.81.020 Definitions A. “Artist” means a practitioner in the Arts, generally recognized by critics and peers as one who produces works of art through a record of exhibitions, public commissions, sale of works, or educational attainment. B. “Art” means all forms of original creations of visual arts, including but not limited to: 1. sculpture in any material or combination of materials 2. painting – all media including portable and permanently affixed works, such as murals and frescoes 3. graphic arts – print making and drawing 4. mosaics 5. photography 6. crafts in clay, fiber and textiles, wood, metal, plastics, and other materials 7. calligraphy 8. stained glass 9. mixed media – any combination of forms or media, including collage C.6.b Packet Pg. 73 At t a c h m e n t : A r t i n P u b l i c P l a c e s - E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 01247.0005/796054.5 3 10. lighting elements not integral to the illumination of the art 11. dedication ceremonies 12. water generated art C. "Art in Public Places" means any work of art which is designed for and sited in a space accessible to the public, from a public square to a wall inside a building open to the public. D. “Building Valuation” means the construction cost for labor and materials computed using the latest building valuation data as set forth by the International Conference of Building Officials (ICBO), excluding land acquisition and off-site improvement costs. E. “City” means the City of Grand Terrace. F. “City Manager” means the City Manager of the City and his or her designee. G. “Developer” means the applicant, developer, or owner (as applicable) of a Development Project. H. “Development Project” means a proposal for the development of improved or unimproved real property, including but not limited to: offices, hotels, motels, restaurants. I. “Director” means the City’s Planning and Development Services Director and his or her designee. J. “Public Art Fund” means a separate fund established to receive monies from any source by the Public Art Fund. K. “Public Place” means any area or property (public or private) which is accessible or visible to the general public a minimum of eight (8) hours during a business day. L. “Planning Commission” means the Planning Commission of the City of Grand Terrace. Section 18.81.030 Applicability A. Except as provided in Section 18.81.040, this chapter shall apply to all works of construction and rehabilitation within the City for which a building permit is required, including, but no limited to, the following: 1. New commercial and industrial construction. C.6.b Packet Pg. 74 At t a c h m e n t : A r t i n P u b l i c P l a c e s - E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 01247.0005/796054.5 4 2. Remodeling or reconstruction of existing commercial or industrial property. 3. Residential subdivisions or development of two or more units, whether by detached single-family residential structures, condominiums, apartments, duplexes, townhouses, or other dwelling units being built in the same tract by the same Developer. B. The creator of the work of Art shall be an Artist through a record of exhibitions, public commissions, sale of works, or educational attainment. Section 18.81.040 Exceptions. A. This chapter shall not apply to the following construction and rehabilitation activities: 1. Public projects undertaken by any agency of the City, the state, county, school district, or any other governmental entity. 2. Remodeling, repair or reconstruction of structures to comply with earthquake seismic safety code standards or which have been damaged by fire, flood, wind, earthquake, or other calamity. 3. Remodeling, repair, or reconstruction of residential units. 4. Nonprofit, social service, or cultural institution projects. 5. Low to moderate housing projects as defined by the household Health and Safety Code Section 50093. 6. Affordable housing development receiving City, state, or federal assistance. 7. Private educational institutions which provide general education equivalent to the public school system (kindergarten through high school or any part thereof). 8. Housing development projects to the extent that such housing development projects comply with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the application thereof was deemed complete. Further, this chapter shall not apply to housing development projects to the extent that applicable law, including but not limited to, Government Code Section 65589.5, prohibits the application of this chapter upon housing development projects. For the purposes of this Section 18.81.050(A)(8), the term “housing development project” shall have the same meaning as provided in C.6.b Packet Pg. 75 At t a c h m e n t : A r t i n P u b l i c P l a c e s - E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 01247.0005/796054.5 5 Government Code Section 65589.5. 9. Such other circumstances where applicable law prohibits the application of this chapter. Section 18.81.050 Final City Approval A. No final City approval, such as a final inspection or a certificate of occupancy, for any Development Project subject to this chapter shall be granted or issued unless and until full compliance with the Art in Public Places is achieved in one of the following ways: 1. The Developer shall provide the City with proof of installation of the required the work of Art in a manner satisfactory to the City pursuant to Section 18.81.060. 2. In-lieu fees have been paid as calculated pursuant to Section 18.81.060. 3. Financial security in an amount equal to the acquisition and installation cost of an approved works of Art as calculated pursuant to Section 18.81.060 and in a form approved by the city attorney have been posted. 4. An approved work of Art has been donated and accepted by the City pursuant to Section 18.81.100. Section 18.81.060 Art in Public Places Program Requirements A. Public Art Requirement. The Developer shall acquire and install Art on or in the vicinity of the Development Project, which shall be in a Public Place, in accordance with provisions of this chapter. The value of the Art shall be at least as follows: 1. The cost of Art for all new Development Projects (except single family residential) shall be equal to at least one percent (1%) of the estimated total Building Valuation. 2. The cost of the work of Art for Development Projects that are single family residential development must be equal to at least ½% of the estimated total Building Valuation. B. Monetary Contribution In Lieu of Public Art. In lieu of acquiring and installing Art on or in the vicinity of the development site in a Public Place pursuant to subsection A of this section, the Developer may elect to make a monetary C.6.b Packet Pg. 76 At t a c h m e n t : A r t i n P u b l i c P l a c e s - E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 01247.0005/796054.5 6 contribution to the Public Art Fund as follows: 1. In the amount of at least one percent (1%) fee of the total estimated construction cost for all new development except single family residential. 2. In the amount of at least one half percent (½%) fee of the total estimated construction cost for new single family residential development. C. If the Developer chooses to pay the in lieu fee, payment in full shall be required at the same time as when all other fees are due on any development processed through the City or upon completion of the project, whichever occurs first. D. Nothing in this section shall prohibit the Developer from placing an approved work of Art with a value, including acquisition and installation costs, totaling an amount less than the Art in Public Places Program allocation provided for in this section, provided that, in that event, the Developer shall also pay into the Public Art Fund an amount equal to the difference between the Art in Public Places Program allocation and the value, including costs of acquisition and installation, of the work of Art placed. This subsection D shall not apply to Industrial Development Projects. Section 18.81.070 Public Art Fund A. Public Art Fund Created. 1. The City Manager is hereby directed to create a special interest- bearing fund entitled Public Art Fund, or other appropriate accounting mechanism. 2. The City Manager shall administer the Public Art Fund. B. Placement and Use of Funds in Public Art Fund. 1. All amounts collected from the in lieu fee collected pursuant to Section 18.81.060(B) shall be placed in said Public Art Fund and expended by the City Manager solely for the costs associated with projects that result in the creation, purchase, installation, security, or maintenance of Art in public spaces. 2. Furnishings or fixtures affixed to the building or its grounds, including architectural features of the building or landscaping that have been uniquely enhanced to be visually appealing, may qualify as Art. Works of Art may be temporary as well as permanent. C.6.b Packet Pg. 77 At t a c h m e n t : A r t i n P u b l i c P l a c e s - E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 01247.0005/796054.5 7 3. When selecting the location for Art purchased though the Public Art Fund, preference shall be given to publicly accessible Public Places. This would include libraries, parks, office buildings, sidewalks, traffic islands, lobbies, plazas, adjacent open spaces or exterior treatment of publicly owned buildings shall be potential sites, but the offices themselves of publicly owned buildings shall not be considered acceptable sites. 4. Location and Art purchased through the Public Art Fund shall be reviewed by the Planning Commission with recommendation to the City Council for final approval. 5. Recommendations for installations may be requested from the Parks and Recreation Committee, the Art Committee, the Planning Commission, the City Council, or other City committee. Section 18.81.080 Ownership and Maintenance of Art A. All works of Art installed pursuant to this chapter on private property shall remain the property of the owner of a site for which the final building permit or certificate of occupancy related to the Development Project was obtained and the owner’s successors and assigns, which property owner must provide all maintenance necessary to preserve and maintain the works of Art in good condition and in the manner approved by the City. 1. Title to all works of Art required by and installed pursuant to this section on private property shall be vested in the owner thereof and pass to the successive owners of the Development Project. 2. Prior to placement of the work of Art, the owner of the subject private property shall execute and record a covenant, agreement, or other instrument, in the form approved by the City Attorney, setting forth a description of the work of Art and acknowledging the obligation of the owner of the subject site to repair and maintain the work of Art. This document shall run with the land and provide notice to future property owners of the obligation to repair and maintain the work of Art and of certain limitations related to any federal, state, or local requirements governing the rights of the Artist, including but not limited to right regarding the alteration, modification or relocation of subject work of Art. 3. Each successive owner shall be responsible for the custody, protection, repairing, restoring, maintenance, or reacting the work of Art in the event of physical defacement, mutilation, alteration or destruction, and securing and maintaining insurance coverage in an amount to be approved by the City for: fire, flood, wind, earthquake and natural disaster, vandalism and extended liability. C.6.b Packet Pg. 78 At t a c h m e n t : A r t i n P u b l i c P l a c e s - E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 01247.0005/796054.5 8 4. Any time the City determines that the work of Art has not been maintained in substantial conformity with the manner in which it was originally approved, the City may require the current property owner to maintain, repair, restore, or replace the work of Art. 5. Failure to maintain the work of Art as provided in this chapter is declared to be a public nuisance and may be abated as such pursuant to applicable provisions of City of Grand Terrace Municipal Code. B. Art donated to and accepted by the City or installed on public property and accepted by the City is owned by the City and maintenance, removal or protection thereof is the responsibility of the City. Section 18.81.090 Procedures for Art installed on Private Property; Review Process and Standards An application for placement of Art on private property shall be submitted to the Director and shall include the following information, at minimum: A. The Developer shall submit a narrative proposal and artistic rendering of the proposed work of Art in satisfaction of the requirements imposed by this section, including any additional information, plans or maps prescribed by the Director at the time of submission of their development application, or indicate an intention to pay the in lieu fees. The application shall also comply with the requirements of Section 18.81.110. B. The proposal for the work of Art shall be considered as an element of the Site and Architectural design review process, pursuant to the Chapter 18.63. C. The approval of all works of Art to be created, purchased, installed, secured and maintained under this section shall require a review and approval of the City of Grand Terrace Planning Commission. D. The decision of the Planning Commission shall be final unless appealed to the City Council, pursuant to Chapter 18.63. E. Review of all proposed works of Art shall be considered based on the following criteria: 1. Conceptual compatibility of the design with the immediate environment of the site. 2. Appropriateness of the design to the function of the site. C.6.b Packet Pg. 79 At t a c h m e n t : A r t i n P u b l i c P l a c e s - E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 01247.0005/796054.5 9 3. Compatibility of the design and location within a unified design character or historical character of the site. 4. Creation of an internal sense of order and a desirable environment for the general community by the design and location of the work of Art. 5. Preservation and integration of natural features with the project. 6. Consideration should be given to structural and surface integrity, permanence, and protection against theft, vandalism, weathering, excessive maintenance, and repair cost. 7. Representation of a broad variety of tastes within the community and the provision of a balanced inventory of Art in Public Places to ensure a variety of style, design and media throughout the community that will be representative of the eclectic tastes of the community. 8. Works of Arts and Art places should be appropriate in scale, form, and content for the immediate, general, social, and physical environments with which they relate. Section 18.81.100 Procedures for Art Donated to City. A. Art Donated as Part of a Development Project. 1. In the event a Developer elects to donate the work of Art to the City pursuant to this chapter as part of a Development Project, an application for acceptance of works of Art to be donated to the City (including for such works of Art to be placed on public property, as applicable) shall be submitted to the Director and comply with the requirements of Section 18.81.110. This application shall be submitted at the same time as the Developer’s application for the Development Project. 2. The application shall also include a written agreement, in form approved by the City Attorney, executed by or on behalf of the Artist who created the Art, which expressly waives his/her rights under the California Art Preservation Act or other applicable law. 3. The proposal for the work of Art shall be considered as an element of the Site and Architectural design review process, pursuant to Chapter 18.63. 4. The Director shall review the application submitted pursuant to this C.6.b Packet Pg. 80 At t a c h m e n t : A r t i n P u b l i c P l a c e s - E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 01247.0005/796054.5 10 section and provide a recommendation to the Planning Commission. The Planning Commission shall consider and may either accept (or conditionally accept) or deny the proposed work of Art. Review of all proposed works of Art shall be considered based on the criteria provided in Section 18.81.090(E). The decision of the Planning Commission shall be final unless appealed to the City Council, pursuant to Chapter 18.63. Section 18.81.110 Application Submittal Requirements A. Any works of Art being donated or placed on public or private property pursuant to this Chapter shall be one-of-a-kind piece. The application shall include: 1. Preliminary sketches, photographs, or other documentation of sufficient descriptive clarity to indicate the nature of the proposed works of Art. 2. An appraisal or other evidence of the value of the proposed works of Art, including acquisition, and installation cost. 3. Preliminary plans shall contain detail information of the works of Art, location, and compatibility with the proposed development. The works of Art shall be an integral part of the landscaping and/or architecture of the building, including compatibility with the character of adjacent conforming development parcels and existing neighborhoods if necessary to evaluate the proposal. 4. A narrative statement to demonstrate that the works of Art will be displayed in an area open and freely available to the general public, or otherwise provide public accessibility in an equivalent manner based on the characteristics of the works of Art or its placement on the site. 5. Other information as may be required by the Director to adequately evaluate the proposed donation of public Art. B. If the work of Art is to be donated to the City, an appraisal or other evidence of the value of the proposed work of Art, including acquisition and installation costs. Section 18.81.120 Removal of Public Art A. If, for any reason, the current owner or successor in interest shall choose to replace any work of Art installed pursuant to this section, the following requirements shall be met before the Art is replaced: C.6.b Packet Pg. 81 At t a c h m e n t : A r t i n P u b l i c P l a c e s - E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) 01247.0005/796054.5 11 1. The replacement of the work of Art must go through the site review process established above, unless the replacement will be identical to the existing works of Art and in the same location. 2. The cost of the replacement shall be equal to, or greater than, the initial cost of the existing work of Art to be removed adjusted for time. 3. The location of the replacement work of Art shall be located in a Public Place and meet the requirement for public visibility in effect at the time of the replacement. 4. The replacement of the work of Art shall conform, in every respect, to all standards in effect at the time of the replacement. 5. The replacement work of Art, location and installation shall violate no other ordinance. 6. The replacement work of Art shall be installed within 180 days of the removal of the existing work of Art piece unless the period is extended by the Director. 7. The owner may choose to pay an in lieu fee equivalent to the cost of the replacement of the existing work of Art as calculated in Section 18.81.060. Section 18.81.130 Annual Report The City Manager shall annually prepare and present a report to the City Council indicating the amount of revenues accumulated in the Art in Public Places Fund and the expenditures made by the City in the preceding fiscal year. Section 18.81.140 Authority for Additional Mitigation Fees collected pursuant to this section do not replace existing development fees or other charges or limit requirements or conditions to provide additional mitigation of impacts imposed upon Development Projects as part of the normal development review process. Section 18.81.150 Waiver The City Manager may request that the City Council exclude certain capital improvement projects from the provisions of this ordinance by the passage of a resolution authorizing such a waiver. C.6.b Packet Pg. 82 At t a c h m e n t : A r t i n P u b l i c P l a c e s - E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) - S e c o n d R e a d i n g ) AGENDA REPORT MEETING DATE: November 8, 2022 Council Item TITLE: Second Reading & Adoption of Ordinances Amending Chapters 3.24 & 3.26 of the Municipal Code Thereby Changing Purchasing Procedure Thresholds to $25,000, Changing City Manager’s Sale of Surplus Supplies, Materials, and Equipment Authority to $25,000, and Increasing City Manager's Authorization Limit to $25,000 and Adding a Conflict of Interest & Unlawful Activities Provision to Chapter 3.24 Thereof PRESENTED BY: Christine Clayton, Finance Manager RECOMMENDATION: 1. Conduct second reading by title only, waive further reading of, and adopt AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.24.070, 3.24.080, 3.24.090, AND 3.24.120 OF CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE THEREBY CHANGING THE THRESHOLDS FOR PURCHASING PROCEDURES, SALE OF SURPLUS SUPPLIES, MATERIALS AND EQUIPMENT, AND CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000; AND ADDING SECTION 3.24.190 TO CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH ADDS REQUIREMENTS RELATING TO CONFLICTS OF INTEREST AND UNLAWFUL ACTIVITY; and 2. Conduct second reading by title only, waive further reading of, and adopt AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.26.030(A) AND 3.26.050(E) OF CHAPTER 3.26 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH INCREASES THE CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000 FOR CONTRACTS FOR PUBLIC PROJECTS AND MAINTENANCE, AS DEFINED THEREIN. 2030 VISION STATEMENT: This staff report supports City Council Goal #1, “Ensure Our Fiscal Viability,” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations. C.7 Packet Pg. 83 BACKGROUND: In May 2014, the City’s fiscal policies were approved by City Council. These core fiscal policies provide a solid framework for the financial administration of the City. The City’s fiscal policies were revised in September 2015. All policies are subject to update and revision as operational needs and circumstances change. Likewise, there will be a need to add or revise policies over time to reflect new operational areas. Further, the City Council’s purchasing procedures can be found in Chapters 3.24 and 3.26 of the Municipal Code. DISCUSSION: The Finance Department has committed to developing a core set of fiscal policies to improve the City’s internal controls, accountability and overall financial management. The following is a listing of the policies that have been approved by the City Council and those in bold and highlighted in red represent updates that the City Council approved at its October 25, 2022, meeting (as provided in Attachment 1): Policies Related to Safeguarding of Assets (Section 1) • Cash Handling & Control (1.01) (changes made on pg. 1, 2, 3, 4, 6, 7, & 8) • Petty Cash Funds & Change Boxes (1.02) (changes made on pg. 1 & 2) • Accounts Receivable (1.03) • Investments (1.04) (changes made on pg. 1 & 3) • Fixed Assets (1.05) (changes made on pg. 3) • Disposition of Surplus Property (1.06) • Fraud Prevention & Detection (1.07) Policies Related to Liability (Section 2) • Accounts Payable (2.01) Policies Related to General Fiscal Management (Section 3) • Purchasing (3.01) (changes made on pg.1, 2, 3, 5, & 6) • Environmentally Preferable Purchasing (3.01.02) • Budget Appropriation Adjustments (3.02) • Travel & Related Business Expenses (3.03) (changes made on pg. 4, 5, & Exhibit A) • Grants (3.04) • Donations (3.05) • Reserves (3.06) • Unclaimed Money (3.07) (changes made on pg. 1) The changes made to “Purchasing (3.01)” were approved by the City Council subject to the adoption of the attached ordinances. Changes to Chapter 3.24 of the Municipal Code (Attachment 2) C.7 Packet Pg. 84 The propose ordinance in Attachment 2 makes the following changes to Chapter 3.24 of the Municipal Code: 1. Increases the City Manager’s authorization limit for the purchase of supplies, materials, equipment, and services (including professional services) from $10,000 to $25,000. 2. Changes the threshold relating to the use of open market purchase procedures for the purchase of supplies, materials, equipment, and services (not including professional services) under Grand Terrace Municipal Code Section 3.24.070 from $10,000 to $25,000. 3. Increases the City Manager’s authority to sell surplus supplies, materials, and equipment from $10,000 to $25,000. 4. Adds a prohibition on conflict of interest and unlawful activity relating to the evaluation or selection of bidders. Further, prohibits employees, officers, and agents from influencing decisions relating to an award of contract when these individuals know or have reason to know he or she has a financial interest in the person/entity seeking the contract or outcome of the selection process Changes to Chapter 3.26 of the Municipal Code (Attachment 3) The propose ordinance in Attachment 3 makes the following changes to Chapter 3.26 of the Municipal Code: 1. Increases the City Manager’s authorization limit from $10,000 to $25,000 for the award of contracts relating to public projects or maintenance work (as defined by Chapter 3.26 of the Municipal Code). 2. Increases the City Manager’s authority to award a contract for public project or maintenance work from $10,000 to $25,000 where the informal bid procedures under Municipal Code Section 3.26.050 results in the lowest bid being $25,000 or less. It is therefore recommended that the City Council conduct second reading by title only, waive further reading of, and adopt the attached proposed ordinances (Attachments 2 and 3). FISCAL IMPACT: There is no fiscal impact associated with approval of the attached fiscal policies and proposed ordinances. ATTACHMENTS: • Fiscal Policies - Updated 10-11-2022 (PDF) • Ordinance amending Chapter 3.24 (DOCX) C.7 Packet Pg. 85 • Ordinance amending Chapter 3.26 (DOCX) APPROVALS: Terry Shea Completed 10/26/2022 10:48 AM Adrian Guerra Completed 10/27/2022 11:48 AM Finance Completed 10/27/2022 2:33 PM City Manager Completed 10/27/2022 3:13 PM City Council Pending 11/08/2022 6:00 PM C.7 Packet Pg. 86 City of Grand Terrace Fiscal Policies revised October 11, 2022 C.7.a Packet Pg. 87 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policies Table of Contents Policies Related to Safeguarding of Assets (Section 1) Page •Cash Handling & Control (1.01) ........................................................................ 1 •Petty Cash Funds & Change Boxes (1.02) ........................................................9 •Accounts Receivable (1.03) ............................................................................ 13 -Application for Discharge of Accountability (Exhibit A) .............................. 18 •Investments (1.04) .......................................................................................... 19 •Fixed Assets (1.05) ......................................................................................... 23 •Disposition of Surplus Property (1.06) ............................................................ 26 -Surplus Property Form (Exhibit A) ............................................................. 27 •Fraud Prevention & Detection (1.07) .............................................................. 28 Policies Related to Liability (Section 2) •Accounts Payable (2.01) ................................................................................ 35 Policies Related to General Fiscal Management (Section 3) •Purchasing (3.01.01) ..................................................................................... 38 -Environmentally Preferred Purchasing (3.01.02) ....................................... 44 •Budget Appropriation Adjustments (3.02) ....................................................... 52 -Budget Appropriation Adjustment Form (Exhibit A) ................................... 55 •Travel & Related Business Expenses (3.03) .................................................. 56 -Travel Authorization & Expense Reporting Form (Exhibit A) ..................... 67 •Grants (3.04) .................................................................................................. 69 -Grant Proposal Informational Form (Exhibit A) .......................................... 74 -Grant Cost/Benefit Worksheet (Exhibit B) ................................................. 76 •Donations (3.05) ............................................................................................. 77 -Donation Receipt Form (Exhibit A) ............................................................ 81 •Reserves (3.06) .............................................................................................. 82 •Unclaimed Money (3.07) ................................................................................ 86 -Sample Public Notice (Exhibit A) ................................................................89 -Claim Form (Exhibit B) ...............................................................................90 C.7.a Packet Pg. 88 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 1 of 8 PURPOSE: The purpose of this policy is to establish the practice by which all cash receipts, or cash equivalents, tendered to the City will be accepted, documented, recorded, safeguarded and deposited. This policy is also intended to provide staff with acceptable practices in the handling and safekeeping of cash or cash equivalents. DEFINITIONS: Cashier: Anyone who accepts payments on behalf of the City. Cash Receipts: Includes coin, currency, checks, money orders, or other cash equivalents that may be processed by a financial institution. (Debit and credit card payments are also considered Cash Receipts, although they are not currently accepted by the City.).) Cash Receipt Location (CRL): A physical location, other than the Main Cashier at City Hall, which has been designated as a location to collect and receipt cash for the City of Grand Terrace. Main Cashier: Located at the front counter of the Finance Department in City Hall. Point of Sale System (POS): A software program that can be run either on a stand-alone computer or on a network and allows for the recording of cash collection and receipting related to payments for goods or services. Remote Deposit: The process for scanning and transmitting checks to the bank electronically for deposit. Returned Items: Transactions that have been presented to the bank for deposit and returned to the City due to account balance or status issues. Such transactions could include but are not limited to Non-Sufficient Funds (NSF) or closed accounts. Starter Checks: Checks that are issued to a bank depositor upon the opening of a new checking account. These checks typically do not contain any address or telephone information related to the depositor. POLICY: I. Responsibility A. The Finance Director has oversight, fiduciary, and administrative responsibility for all cash collections performed by City staff or on behalf of the City by contractors. B. The Finance Director has the responsibility and authority to ensure that all cash handling is performed according to this policy. C. This responsibility shall include: C.7.a Packet Pg. 89 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 2 of 8 1. To act as an advisor for cash handling activities performed by City staff. 2. To oversee the cash handling activities on behalf of the City. 3. To verify that all deposits are handled and prepared in accordance with City policy. 4. To review and implement internal controls as needed to ensure the safety of City cash and cash equivalents. II. Scope A. This policy shall apply to all locations that collect cash or cash equivalents on behalf of the City. B. In some cases due to the nature of the collection activity, specialized procedures may be developed which are different than those outlined within this policy. In these cases these procedures must be approved by the Finance Director prior to their implementation. C. Entities that collect funds on behalf of the City, through a contractual relationship, may adopt policies and procedures that differ from those outlined herein. In such cases, these documents must be reviewed and approved by the Finance Director. III. Internal Controls A. Standard accounting internal control procedures will be established and followed. B. Standard accounting internal controls include but are not limited to: 1. Separation of duties. (For example, the person preparing the deposit should be different from the person who accepted the payment and receipted the transaction, when it is practical to do so from a staffing standpoint.) 2. Periodic reconciliation of accounts by someone independent of the cash handling or recording functions. 3. Document Control. Unused manual receipt books should be maintained in a secured location with access limited to authorized staff. IV. Collection Locations A. The Main Cashier in the Finance Department is designated as the primary location for the collection and deposit of cash receipts. A Cash Receipt Location has also been authorized for the Community Development Department (CDD) counter and Child Care Center. B. Cash Receipts received by the City should be deposited in the City’s bank whenever accumulated deposits total $5,000 500 or at least once a week. more. C.7.a Packet Pg. 90 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 3 of 8 Cash deposits will be made in person at the bank; check deposits may be made in person at the bank or via Remote Deposit. Deposits processed by the Child Care Center require a deposit slip submitted to Finance for bank reconciliation purposes. When the appropriate account coding is not immediately available, the payment should be deposited and coded to a suspense account until such time that the coding is identified and communicated to Finance staff. Items placed in suspense need to be identified and reclassified to their correct account within ten working days or by the calendar month-end. C. Any request for the collection of cash receipts at a location other than the Main Cashier, or CDD counter or Child Care Center must be authorized by the Finance Director and should include the following information: 1. How customer service will be improved through the processing of payments.. 2. The cash custodian(s). 3. How cash activities will be accounted for (for example, cash register, hand receipts, etc.). 4. How cash receipts will be safeguarded (for example, safe or lockbox) 5. How deposits will be managed. D. A list of approved collection locations will be maintained by the Finance Department. E. All Cash Receipts will be maintained in a secured area with limited access. F. The establishment of change funds to support collection operations will follow the guidelines set forth in Fiscal Policy No. 1.02 (Petty Cash Funds & Change Boxes). G. All City employees who handle cash will be included under the City’s insurance coverage. V. Methods of Payment A. The following methods of payment will be accepted: 1. Cash 2. Checks 3. Money Orders 4. Traveler’s Checks 5. Wires / Electronic Funds Transfer (EFT) 6. Other forms of tender as approved by the Finance Director and the City’s bank. 7. Credit Card Payments (Visa, Mastercard, or Discover) 8. Debit card payments Note: Debit card payments are currently not accepted but will be recognized as an allowable payment method once the City has established the procedures to process such payments. B. Checks C.7.a Packet Pg. 91 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 4 of 8 1. Checks, Money Orders and Traveler’s Checks are to be made payable to the City of Grand Terrace. 2. Change will not be made for checks written in excess of the invoice amount. In cases where the amount of the check is in excess of the invoice amount the difference will be refunded by means of a City check. 3. Personal Checks a. Personal checks presented in person must have the customer’s name and address preprinted on the face of the check. b. Starter/Blank checks are not to be accepted without the approval of the Finance Director. Proper identification must be provided and the name, address and phone number will be placed on the face of the check. c. Returned Items i. Returned Items will be subject to a returned check fee. ii. The amount of the Returned Check Fee will be determined annually and published in the City’s Fee Schedule. iii. Payors may not replace the returned item(s) in the same manner as the original presentment. (For example if the customer provided an NSF personal check they cannot replace this with another personal check.) iv. Upon the occurrence of a returned item, Finance staff will notify the accepting department so that the related goods or services can be held until the item is replaced. v. The Finance Department will maintain a list of customers who have presented payments that have been returned. The City may require other forms of payment from customers who have recurring issues with returned payments. d. Checks will not be accepted for the following reasons: i. Post-Dated Checks (Checks written on a future date) ii. Stale Dated Checks (Checks written 30 days prior) iii. Checks drawn on foreign currency e. The following personal check transactions will not be performed: i. No cash may be given as change for a personal check transaction. If a check is accepted for an amount greater than the cost of the service, a payment request must be prepared and processed as a refund once the check has cleared. In the case of business license renewals, a credit may be applied to the account. No Exceptions. (This constitutes an illegal loan of City funds.) ii. City employee personal checks will not be redeemed (cashed) for cash. iii. No two-party checks will be accepted. (A two-party check is made C.7.a Packet Pg. 92 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 5 of 8 payable to one party and endorsed to the City) f. When checks are received through the mail the following requirements will be met: i. Checks will be restrictively endorsed. The first employee at a Cash Receipt Location to come in contact with a check is responsible to have the check restrictively endorsed. Endorsement stamps will be obtained from the Finance Director or his/her designee. In the case of checks processed through the Remote Deposit process, the endorsement is automatically generated. ii. If the check is payable to the City but lacks sufficient information to identify the appropriate general ledger account number, write “SUSPENSE” on the deposit form and present to the Main Cashier or Finance Department staff. The check will then be deposited into the bank. When the appropriate general ledger account number is identified, provide the coding to Finance so that the funds can be properly applied to the account. The appropriate account should be identified prior to the month-end closing. 4. Business Checks Company checks will be inspected to ensure that multiple signatures are in place if required or if a “not valid over $” statement is included. 5. Traveler’s Checks a. Traveler’s checks are treated as cash but will require the following actions: i. Cashier must witness the customer write in the payee. ii. Cashier must witness the customer countersign the check. iii. Signature and countersignature should be compared. b. Identification will be required. c. No traveler’s checks drawn on foreign funds will be accepted. 6. Cashier’s Checks / Personal Money Orders a. Cashier’s Checks and Personal Money Orders will be accepted. b. Identification will be required. 7. Currency a. Anyone receiving cash payments is responsible for exercising reasonable care in screening cash transactions for counterfeit currency. C.7.a Packet Pg. 93 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 6 of 8 b. Mutilated currency is still legal tender. Staff may ask customers to substitute another bill for the mutilated bill. If they cannot substitute the bill staff must accept the mutilated bill. i. Currency is considered mutilated if it is torn, written on, missing a portion, or otherwise damaged. ii. Mutilated currency will be exchanged at full value if ¾ of the two serial numbers are present. Currency that is less than ¾ intact will not be accepted due to its diminished redemptive value. iii. Mutilated currency should be removed from the deposit and returned separately to the bank for collection. 8. Wires / Electronic Fund Transfers (EFT) a. All wires or EFTs are to be coordinated through the Finance Director or his/her designee. b. Documentation supporting the wire/EFT and identifying the correct revenue coding will be provided to Finance staff prior to the anticipated date of receipt. This will assist Finance staff in their daily cash management planning. VI. Documentation of Transactions A. All transactions will be recorded by means of an acceptable method of documentation. B. Acceptable methods of documentation include: 1. Cash Register 2. Point of Sale System (POS) 3. Manual Receipt books as issued by the Finance Department. C. Customers must always be provided a receipt which provides the following information: 1. Amount Paid 2. Date of Transaction 3. Service or Product provided 4. Manner of payment D. Receipts 1. Receipts provided to customers will be pre-numbered and issued in numerical sequence by the receipting location (Finance,and CDD counter and Child Care Center). 2. Manual Receipting will be performed when necessary (e.g., during power outages, computer system failures, or special events) by utilizing City of Grand Terrace receipt books, which are maintained and issued by the Finance Department. C.7.a Packet Pg. 94 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 7 of 8 3. Receipts generated by POS systems or cash registers should have a system generated receipt number that should be unique and should be issued in sequence. E. When City of Grand Terrace manual receipts are issued, copies will be distributed in the following manner: 1. Customer 2. Issuing department 3. Cash drawer/transaction 4. Receipt book VII. Balancing and Reconciling A. It is the responsibility of each cashier to balance and reconcile his/her cash drawer(s) daily. Cash drawer(s) should be equal to the change fund plus the balance of cash receipt activity for the day or shift. B. Cash drawer(s) should be reconciled against the daily cash receipts report, cash register tape or calculator tape depending on whether the site uses a POS system, a cash register, or manual receipts. C. Overage / Shortage 1. When the amount in the cash drawer does not balance with the daily report, staff will report an Overage or a Shortage as appropriate. 2. When an Overage or Shortage is identified, staff will complete the City of Grand Terrace Overage/Shortage Form and submit with their deposit. 3. The Overage/Shortage form will require the following information: a. Date of Deposit b. Amount of overage/shortage c. Reason for overage/shortage d. Signature of staff responsible for drawer e. Signature of supervisor 4. The Overage/Shortage Form must accompany deposit to the Main Cashier. 5. Overages or Shortages in excess of $10 must be immediately brought to the attention of the Finance Director or his/her designee upon identification. 6. Under no circumstances is City staff allowed to balance overages by keeping the overage out of the deposit or balance shortages by taking money from other sources, such as out of pocket or money held back from a previous overage. VIII. Requirements for Deposit A. All cash receipts will be deposited into the City’s bank account in a timely manner to ensure the proper posting of accounts and to ensure the safety of staff and City funds. C.7.a Packet Pg. 95 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 8 of 8 1. Deposits can be made at the Main Cashier during City Hall business hours. 2. Deposits not taken to the bank the same day will be secured by Finance staff in a fireproof and locked cabinet or safe. A drop safe is utilized at the Child Care Center for checks not processed the same day as received. No cash is to be dropped off. B. All Cash Receipt Locations will prepare deposits whenever accumulated deposits total $5,000 500 or at least once a week more. C. Funds received by staff who are not designated as a Cash Receipt Location must be forwarded to the Finance Department the same day as received. D. Cash Receipts are not to be sent through the City’s interoffice mail system. C.7.a Packet Pg. 96 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.02 Subject: Petty Cash Funds & Change Boxes Effective Date: 5/13/14 10/11/2022 Page 1 of 4 PURPOSE: For Petty Cash – To authorize the use of petty cash funds for emergency purchases and minor out-of-pocket expense reimbursement. For Change Boxes – To authorize change boxes for the sole purpose of making change. DEFINITIONS: Petty Cash is defined as a small fund of cash that is maintained for the payment of incidental expenses. It may also be advanced to employees on an exception basis to make small, incidental purchases where payment by check is not possible or not feasible given the circumstances. It is also available on an exception basis to reimburse City officials or employees for prior-approved, City business-related purchases which were originally paid out-of-pocket, and where reimbursement by check is not feasible under the circumstances. Change Box is defined as a small fund of cash requiring a particular mix of denominations of dollar bills and coinage for the explicit purpose of making change. Reimbursements and advances for incidental City purchases may not be made from a change fund. POLICY: I. Approval to Make Purchases or Receive Reimbursement from Petty Cash A. Advance approval from the employee’s department head must always be obtained to make a Petty Cash purchase or to be reimbursed for out-of-pocket expenses from Petty Cash. Without prior approval, there should be no expectation that an out-of-pocket expense will be reimbursed by Petty Cash. For recurring purchases, a standing approval may be given by the department head so that advance approval is not needed for each transaction. B. Use of Petty Cash is considered an exception to the standard means of procuring supplies. Issuance of a City check shall be the preferred method of procurement. II. Establishment and Authorization of Petty Cash Funds A. Petty Cash funds have been established in the following amounts: City Hall (Finance Department) $1,000 550 Child Care Center $500 Community Services * $50 100 * Maintained in the Finance Department and used for special events such as Animal Licensing. B. Increasing the above amounts or establishing any additional Petty Cash funds requires written recommendation by the applicable department head and Finance Director, and approval by the City Manager. C.7.a Packet Pg. 97 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.02 Subject: Petty Cash Funds & Change Boxes Effective Date: 5/13/14 10/11/2022 Page 2 of 4 III. Maximum Limit For Petty Cash Expense or Reimbursement A. The maximum amount of Petty Cash that may be used for a particular expense or reimbursement shall be as follows: City Hall Petty Cash $200 Child Care Center Petty Cash $200 B. Any request to exceed above limits limit must be approved by the Finance Director or his/her designee. IV. Responsibilities and Procedures A. Fund Custodians 1. Finance Department staff shall maintain the City Hall Petty Cash fund. The Petty Cash fund maintained at the Child Care Center shall have a fund custodian appointed by the department head and an appropriate authorization form on file with the Finance Department. 2. At all times, and without exception, the total Petty Cash fund shall consist of cash or a combination of cash and approved Petty Cash Request Forms, which together total the authorized amount of the fund, as identified in Section II.A of this Policy. B. Procedures for Advancement of Petty Cash for Incidental Purchases 1. Whether Tthe request is to utilize the City Hall or Child Care Center Petty Cash fund, the requesting department or individual must complete a Petty Cash Request Form, which shall provide the date, dollar amount requested, description, account number to be charged, and the appropriate signature approvals. 2. In the event the amount requested exceeds the limits set forth in Section III.A of this policy, the signature of the Finance Director of his/her designee shall be obtained to approve the disbursement. 3. The Petty Cash Request Form must clearly indicate if the monies are being “Advanced”. 3. A receipt or other supporting documentation substantiating a purchase is to be obtained from the employee within two (2) working days following the purchase. 4. If the purchase was for less than the advanced amount, the fund custodian must note the actual amount on the voucher form, obtain the difference in cash from the recipient, and return this amount to the Petty C.7.a Packet Pg. 98 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.02 Subject: Petty Cash Funds & Change Boxes Effective Date: 5/13/14 10/11/2022 Page 3 of 4 Cash fund. The recipient and fund custodian should initial the revised voucher form as concurrence. 5. If the purchase was for more than the advanced amount, the recipient must submit a new and approved Petty Cash Request Form for the total amount of the purchase. The fund custodian will reimburse the recipient for his/her out-of-pocket amount and return the original Petty Cash Request Form previously submitted. C. Procedure for Use of Petty Cash for Out-of-Pocket Reimbursement 1. The requesting department or individual must complete the Petty Cash Request Form for review and approval. The completed form shall provide date, dollar amount requested, description, account number to be charged, and the appropriate signature approvals prior to presentation. 2. Actual receipts of the out-of-pocket purchase must be attached to the Petty Cash Request Form. 3. In the event the amount requested exceeds the limits set forth in Section III.A of this Policy, the signature of the Finance Director or his/her designee shall be obtained to approve the disbursement. D. Replenishment of the Petty Cash Fund To replenish the Petty Cash fund, the fund custodian will attach all receipts and the applicable Petty Cash Request Forms, complete a payment request form, obtain the appropriate authorization signatures, and submit the reimbursement request to the Finance Department. V. Approval to Establish or Increase a Petty Cash Fund A. The Finance Director shall be responsible for review of any request to establish or increase a Petty Cash fund; however, approval to establish a new fund or increase an existing fund requires approval of the City Manager. B. Such requests shall be submitted in writing to the Finance Director by the department head responsible, and shall include justification for the request. If the Finance Director is in agreement with the request, he/she will indicate his/her approval and forward the request to the City Manager for final approval. VI. Change Boxes A. Authorization and Control 1. Three (3) Change Boxes are currently authorized in the Finance Department and integrated with the cash register. 2. Each Change Box maintains cash and coin totaling $200. C.7.a Packet Pg. 99 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.02 Subject: Petty Cash Funds & Change Boxes Effective Date: 5/13/14 10/11/2022 Page 4 of 4 3. Each Cash Box has a separate custodian with individual password security and daily reconciliation. B. Responsibilities and Procedures 1. Departments maintaining Change Boxes shall appoint fund custodians. 2. The procedure for establishing or increasing the amount of a Change Box shall be the same as that for Petty Cash funds (see Section V of this policy). 3. Internal control procedures for Change Boxes shall be the same as those for Petty Cash (see Section VII of this policy). 4. Under no circumstances shall a Change Box be used to advance money or to reimburse for incidental purchases. VII. Internal Control A. Audits of Petty Cash Funds and Change Boxes 1. Audits of Petty Cash funds and Change Boxes will be the responsibility of the Finance Department and shall consist of unannounced cash counts on a periodic basis, but no less than semi-annually. 2. Petty Cash custodians shall have the responsibility to balance their respective Petty Cash funds and Change Boxes on no less than a monthly basis. 3. Any balancing discrepancies from the periodic cash counts must be brought to the immediate attention of the Finance Director. Notification shall consist of a memo from the department head detailing the known or presumed causes of the discrepancy. C.7.a Packet Pg. 100 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.03 Subject: Accounts Receivable Effective Date: 5/13/14 Page 1 of 5 PURPOSE: To establish uniform guidelines and principles for the recognition, recording, collection and write-off of accounts receivable related to goods or services provided by the City or for citations issued by or administered by the departments of the City. DEFINITIONS: Accounts Receivable: A debt owed to the City that arises in the normal course of business dealings and not supported by negotiable paper; a claim against a debtor usually arising from sales or services rendered. Accounts receivable include but are not limited to, rent, concession fees, permit fees, license fees, citations, and payments for goods and services. Allowance for Doubtful Accounts: A valuation account (i.e. contra asset) that is subtracted from the trade receivable on the balance sheet. Bad Debt: A past due account receivable that, despite best efforts by the City, remains unsatisfied and for which there is reasonable doubt that the underlying debt will be satisfied in whole or in part. The expense for a bad debt is recognized when the account receivable becomes doubtful, which typically occurs prior to the write-off of the receivable. The recording of Bad Debt is for accounting purposes only and this action does not discharge the debt. The debt is still owed to the City, however, the amount shown as owed to the City has been adjusted off the financial statement to reflect the doubtful collection. Cognizant Department: The department within the City that negotiated the agreement or contract, or issued the citation or invoice giving rise to the particular account receivable. Debt: In the context of this policy, debt refers to a sum of money due by express agreement between the City and another party or parties. Debt may be owed the City by an individual or by a business entity. Past Due: Refers to an account receivable for which payment has not been received by the established due date. Unearned Revenue: An accounting transaction where items are not recognized as revenue in the current period because they do not meet the “availability” or “collectability” standards in order to be recorded in the current period. Write-Off: An accounting transaction that removes an account receivable from the accounting books and records, and signals the end of any further collection efforts related to that account receivable. C.7.a Packet Pg. 101 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.03 Subject: Accounts Receivable Effective Date: 5/13/14 Page 2 of 5 POLICY: I. Scope This policy pertains to all accounts receivable City-wide whether processed through the City’s financial system or through other subsidiary systems or processes. Accounts receivable include all monies owed to the City for services performed, taxes levied, or citations issued for other persons or organizations including contracts, grants and leases. II. Responsibilities A. Finance Department: It is the responsibility of the Finance Department to perform the following functions: 1. Record the transaction in the City’s general ledger. 2. Maintain supporting documentation. 3. Bill the customer or reimbursing agency. The exception to this is in cases where the Cognizant Department performs the billing function. In such cases, the Finance Director must review and approve the billing and collection procedures. 4. Maintain an aging schedule of outstanding Accounts Receivable and follow up monthly via statements, collection notices or telephone contact, as appropriate, to collect any amounts outstanding more than 30 days. (Note: While monthly follow up and collection efforts are administered by the Finance Department, the Cognizant Department may be asked to assist with collection efforts due to their relationship with the customer or reimbursing agency.) 5. Coordinate the referral of uncollected Accounts Receivable to a collection agency, as applicable and further addressed in Section III of this Policy. 6. Annually review the collectability of outstanding accounts at fiscal year-end. B. Cognizant Department: It is the responsibility of the department providing the service or issuing the citation to perform the following functions: 1. Obtain an agreement to pay such as contract or other form of documentation. 2. Provide the product or service to the customer. 3. Document the product or service provided. 4. Communicate with Finance staff and provide supporting documentation for the transaction. 5. Bill customer if not handled by the Finance Department. In cases where the billing function is performed by the Cognizant Department rather than the Finance Department, the Finance Director must review and approve the billing and collection procedures. 6. Communicate with customer or agency to resolve disputes or discrepancies. 7. Assist with collection efforts if requested to do so by the Finance Department. C.7.a Packet Pg. 102 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.03 Subject: Accounts Receivable Effective Date: 5/13/14 Page 3 of 5 8. In conjunction with the Finance Department, annually review the collectability of outstanding accounts at fiscal year-end. C. Contractors working on behalf of the City to collect for goods or services provided or for citations issued are responsible to perform the following functions: 1. Provide to the Finance Department a monthly aging schedule of all Accounts Receivable including an accounting of current billings, collections and any other activity conducted on accounts related to City services or citations. 2. Maintain a system that tracks the history and status of customer accounts. III. Payment Terms / Collections A. The following payment terms and collection process shall be followed. 1. Payments will be due within 30 days from the invoice date. 2. Interest/Penalty/Late Fees will be charged in a manner consistent with applicable ordinances or policies. The imposition of interest charges, penalties or late fees will be communicated to the customer through the following methods: a. A warning notice or statement will be sent out thirty (30) days in advance of the penalty effective date. b. A new statement will be sent out with the amended invoice/citation amount including the appropriate interest, penalty or late fee. 3. Statements will be issued on a monthly basis unless there are circumstances that warrant some other billing cycle. Exceptions from the monthly billing cycle must be approved by the Finance Director. 4. The Cognizant Department may be requested to assist Finance staff in collection efforts on accounts more than 60 days outstanding. 5. Accounts more than 60 days outstanding may be assigned to a collection agency as determined by the Finance Director. IV. Financial Reporting for Accounts Receivable A. The Finance Department will record the revenues and associated accounts receivable in accordance with Generally Accepted Accounting Principles. B. Periodically, at least annually in conjunction with the fiscal year-end audit, open accounts receivable balances will be reviewed in order to ensure that the City’s financial statements accurately and appropriately reflect the status of these accounts. C. The collectability of open accounts receivable will be estimated so that they can be reflected in the City’s financial statements at their net realizable value, which is consistent with Generally Accepted Accounting Principles. These amounts will be reflected in the following manner: C.7.a Packet Pg. 103 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.03 Subject: Accounts Receivable Effective Date: 5/13/14 Page 4 of 5 1. Enterprise Funds: For enterprise funds (if applicable), an allowance for doubtful accounts will be established in an amount to be determined by the Finance Director or his/her designee in consultation with the current outside auditor for the City. 2. Other Funds: Taxes, fees, citations and other types of revenues found in governmental funds that are due but not collected at year-end, and where there is some level of uncertainty about the ultimate collectability, will be recorded with a debit to Accounts Receivable and a credit to Unearned Revenue within the appropriate fund structure until the uncertainty is resolved at which time the appropriate entry would be a debit to Unearned Revenue and a credit to the appropriate revenue account. This method will result in recognizing the receivable on the financial statements without impacting fund balance with potential fluctuations as revisions are made to estimates. V. Write-Offs: A. As part of the annual review of accounts receivable balances, accounts that have progressed through the collection process and remain unpaid will be reviewed to determine collectability. Based on this review, a recommendation for the write-off of the account or additional collection efforts will be made. The collection process will consist of, but not be limited to, the following steps or processes: 1. Internal Collection efforts (including consultation with the City Attorney’s office for potential legal remedies); 2. Assignment to collection agency; 3. Claims to the Franchise Tax Board (Administrative & Parking Citations); 4. Claims to the Department of Motor Vehicles (Administrative & Parking Citations). B. The City Manager may, at his/her discretion, discharge from further accountability any City department, officer, or employee charged by law with the collection of money which is due and payable if any of the following circumstances apply: 1. The amounts are too small to justify the cost of collection. 2. The likelihood of collection does not warrant the cost involved. 3. The amount has been otherwise lawfully compromised or adjusted. Such discharge of accountability shall only be made upon consideration and approval of a verified application submitted by a department or division with the Finance Director and then approved by the City Manager. Such a discharge of accountability does not constitute a release of any persons from liability for payment of any amount due the City. C. The request to authorize the write-off of accounts must be accompanied by the following documentation: C.7.a Packet Pg. 104 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.03 Subject: Accounts Receivable Effective Date: 5/13/14 Page 5 of 5 1. A detailed account aging (listing of date of service/citation and amount owed by account); 2. A description of collection efforts undertaken; 3. Explanation of reason(s) account(s) is/are determined to be uncollectible; 4. A signed Application for Discharge of Accountability form (Exhibit A). D. Applications for Discharge of Accountability that have been deemed by the Finance Director to be appropriate to forgo further collection actions will be submitted to the City Manager for final approval. E. A copy of the completed Application for Discharge of Accountability and the supporting documentation will be forwarded to Finance staff for entry into the City’s financial system. C.7.a Packet Pg. 105 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) Exhibit A Application for Discharge of Accountability 1. I, on behalf of the Department apply for (Department Head) (Department) Discharge of accountability for collection of the following obligation(s) for the following reason(s): □ The amounts are too small to justify the cost of collection. □ The likelihood of collection does not warrant the cost involved. □ The amount has been lawfully compromised or adjusted. □ Other 2. The person(s) or entity(ies) liable for payment are: (Attach a separate sheet if necessary) Type/ Account/ Program Invoice # Department Name Date Balance I certify that all reasonable collection efforts have been attempted and that correspondence files and other collection documentation supporting the reasons for discharge of accountability shown above will be maintained for three years from the approved date of the discharge of accountability. (Department Head Signature) Above Application for Discharge of Accountability: □ Approved as submitted. □ Approved as submitted. □ Approved except as noted. □ Approved except as noted. _______________________________________ ________________________________ (Finance Director Signature) Date (City Manager signature) Date To: (1) Finance Director (2) City Manager From: Applicable Department Head Date: Subject: Application for Discharge of Accountability for Collection of Monies Owed the City C.7.a Packet Pg. 106 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.04 Subject: Investments Effective Date: 5/13/14 10/11/2022 Page 1 of 4 I. PURPOSE To establish a policy for the management and oversight of the City’s investments. II. POLICY It is the policy of the City of Grand Terrace to invest funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all statutes governing the investment of City funds. III. SCOPE This investment policy applies to all financial assets of the City. These funds are audited annually and accounted for in the Annual Financial Report. Funds include the General Fund, Capital Projects Fund, Special Revenue Funds, Enterprise Funds and Trust Agency Funds, including funds held by the Successor Agency to the Grand Terrace Community Redevelopment Agency. IV. PRUDENCE Investments shall be made with judgment and care, under circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility and/or liability for an individual security’s credit risk or market price changes. V. OBJECTIVES The primary objectives, in order of priority, of the investment program shall be: A. Safety: Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses in individual securities do not exceed the income generated from the remainder of the portfolio. B. Liquidity: The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. C. Yield: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into C.7.a Packet Pg. 107 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.04 Subject: Investments Effective Date: 5/13/14 10/11/2022 Page 2 of 4 account the investment risk constraints and the cash flow characteristics of the portfolio. VI. DELEGATION OF AUTHORITY Authority to manage the investment of surplus funds is derived from California Government Code Section 53600, et seq., and this policy. Management of bond funds is controlled by Government Code Section 5922(d) and such investments must conform to the requirements of the bond indenture. In some cases, it may be appropriate for investments of bond proceeds to cover a longer duration than those limits established for surplus (operating) funds. Management responsibility for the investment program is hereby delegated to the Treasurer (or Finance Director if a separate position of Treasurer is not staffed), who shall establish procedures and operate the investment program consistent with this investment policy. Procedures may include, but not limited to, references to: safekeeping, repurchase agreements, wire transfer agreements, collateral/depository agreements and banking services contracts, as appropriate. The Treasurer (Finance Director) may delegate authority to subordinates for day-to-day investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer (Finance Director). VII. ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions. VIII. AUTHORIZED FINANCIAL INSTITUTIONS AND BROKER/DEALERS A. The City will utilize only financial institutions and broker/dealers who are authorized to provide investment services in the State of California. B. No public deposit shall be made except in a qualified public depository as established by State laws. For broker/dealers of government securities and other investments, the Treasurer (Finance Director) shall select only broker/dealers who are licensed and in good standing with the Securities and Exchange Commission and the Securities Regulation Division of the California Department of Business Oversight. C. Broker/dealers and investment advisors utilized by the City shall be approved by the City Council. IX. AUTHORIZED INVESTMENTS The City is empowered by statute and authorized by the City Council to invest in the following: A. U.S. Treasury Obligations (Treasury Bills, Treasury Notes) C.7.a Packet Pg. 108 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.04 Subject: Investments Effective Date: 5/13/14 10/11/2022 Page 3 of 4 B. Repurchase Agreements C. Certificates of Deposit with State Banks, National Banks, State or Federal Savings Associations, State and Federal Credit Unions in California that are fully insured by federal deposit insurance. The Treasurer (Finance Director) may waive collateralization in lieu of deposit insurance. D. Negotiable Certificates of Deposit, Collateralized with U.S. Treasury Obligations Having a Market Value of 110%. The Treasurer (Finance Director) may, at his/her discretion, waive security for that portion of a deposit that is already covered by federal deposit insurance. E. Passbook Savings Accounts Placed with Federal or State Banks or Credit Unions that are fully insured by federal deposit insurance. The Treasurer (Finance Director) may waive collateralization in lieu of federal deposit insurance. F. Securities Issued by Federal Agencies G. Local Agency Investment Fund (LAIF) 1. This is a special fund of the State Treasurer, in which local agencies are allowed to pool their funds for investment purposes up to a maximum of $50 $75 million, with no restrictions on the amount of bond proceeds that can be invested. 2. LAIF is part of the Pooled Money Investment Account (PMIA). The PMIA began in 1955 and oversight is provided by the Pooled Money Investment Board (PMIB) and an in-house Investment Committee. The PMIB members are the State Treasurer, Director of Finance, and State Controller. 3. All securities are purchased under the authority of Government Code Section 16430 and 16480.4. The State Treasurer's Office takes delivery of all securities purchased on a delivery-versus-payment (DVP) basis using a third-party custodian. All investments are purchased at market and a market valuation is conducted monthly. Additionally, the PMIA has policies, goals and objectives for the portfolio to ensure that the goals of Safety, Liquidity and Yield are not jeopardized and that prudent management prevails. These policies are formulated by Investment Division staff and reviewed by both the PMIB and the LIAB on an annual basis. 4. The State Treasurer's Office is audited by the Bureau of State Audits on an annual basis and the resulting opinion is posted to the State Treasurer's Office website following its publication. The Bureau of State Audits also has a continuing audit process throughout the year. All investments and LAIF claims are audited on a daily basis by the State C.7.a Packet Pg. 109 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.04 Subject: Investments Effective Date: 5/13/14 10/11/2022 Page 4 of 4 Controller's Office as well as an in-house audit process involving three separate divisions. H. Mutual Funds issued by diversified management companies as defined by Section 23701(m) of the Revenue and Taxation Code, provided that the portfolio of such investment company or investment trust is limited to U.S. government obligations or agencies of the federal government and repurchase agreements fully collateralized by such securities. I. Pools and Other Investment Structures Incorporating Investments Permitted in California Government Code Sections 53601 and 53635 such as local government investment pools sponsored by counties and joint powers authorities. These entities will typically have their own investment policies, which may differ from that of the City. X. COLLATERALIZATION All certificates of deposit must be collateralized by U.S. Treasury obligations held by a third party. The Treasurer (Finance Director) may waive this requirement up to the amount already insured by federal deposit insurance. XI. SAFEKEEPING AND CUSTODY All securities purchased from broker/dealers shall be conducted on a delivery- versus-payment (DVP) basis and shall be held by a third-party custodian designated by the Treasurer (Finance Director) and evidenced by safekeeping receipts. This would not apply to any book-entry direct purchases from the U.S. Government. XII. DIVERSIFICATION The City will diversify its investments by security type and institution. C.7.a Packet Pg. 110 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.05 Subject: Fixed Assets Effective Date: 5/13/14 10/11/2022 Page 1 of 3 PURPOSE: To establish the criteria for determining fixed assets, as well as their physical control, accountability, and depreciation. DEFINITIONS: Fixed Assets refers to land, buildings, equipment, furniture, vehicles, and improvements other than buildings, acquired by the City of Grand Terrace for use in the provision of goods and services to its citizens. Not all Fixed Assets are required to be reported on the balance sheet. Fixed Assets with very short useful lives, or of small monetary amounts, can be “expensed” in the period in which they are acquired. Fixed Assets reported on the balance sheet are said to be “capitalized”, meaning the capital outlay is recorded as an addition to the asset account, and will have an expected useful life of at least two years. The monetary criteria by which governments decide to report Fixed Assets on the balance sheet, is known as the “capitalization threshold.” Governments may utilize separate thresholds for different classes of fixed assets, or establish a single threshold for all of its fixed assets. Capitalization is a financial reporting issue. It addresses the material expenditure level by which users of the City’s financial reports are informed of the policy decision to account for Fixed Assets. It does not eliminate the City’s responsibility for maintaining adequate control over all of its assets, or other equipment below the capitalization threshold, to minimize the risk of loss or misuse. POLICY: I. Fixed Asset Capitalization Threshold Criteria A. Land Land will be capitalized at actual cost. There is no specific dollar threshold. B. Improvements to Land Improvements to land with a value of $25,000 or more will be capitalized. Improvements valued at less than $25,000 will be expensed in the current year. C. Buildings and Building Improvements 1. Buildings and building improvements with a value of $25,000 or more will be capitalized. Buildings and improvements valued at less than $25,000 will be expensed in the current year. 2 Capitalized cost generally includes such items as site clearance and excavation, architectural fees, initial landscaping, building construction and others. C.7.a Packet Pg. 111 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.05 Subject: Fixed Assets Effective Date: 5/13/14 10/11/2022 Page 2 of 3 D. Equipment and Vehicles 1. Equipment and vehicles with a value of $5,000 or more will be capitalized. Equipment and vehicles valued at less than $5,000 will be expensed in the current year. 2. Capitalized cost generally includes purchase price, sales tax, transportation costs and installation. B. Useful Life 1. Fixed assets will be capitalized only if they have a useful life of at least two years following the date of acquisition. 2. Assets that do not meet this criterion shall be expensed regardless of cost. 3. Following are the various Fixed Asset categories and the corresponding useful life range for each category: a. Machinery & Equipment 5 – 15 years b. Vehicles 6 – 15 years c. Improvements other than Buildings 15 – 20 years d. Infrastructure 20 – 30 years e. Buildings 50 years f. Sewer Lines 90 years Note: The specific useful life assigned to each asset will be determined by the Finance Director, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 34. C. Final Capitalization Decision Rests with Finance Director The final decision on whether to capitalize, or how much to capitalize a fixed asset, rests with the Finance Director or his/her designee. II. Identification and Inventory A. Each vehicle, furniture and equipment item that is classified as a Fixed Asset will have a unique identification tag affixed to the item by Finance staff for security and control purposes at the time the Fixed Asset is placed in service. B. An inventory of all Fixed Assets will be conducted by Finance staff annually to verify that no Fixed Assets are missing nor have been moved to another location. Any Fixed Assets that are missing or not in the assigned location when the inventory is conducted must be reported to the City Manager, along with a written explanation from the director of the department to which the Fixed Asset was assigned. C.7.a Packet Pg. 112 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.05 Subject: Fixed Assets Effective Date: 5/13/14 10/11/2022 Page 3 of 3 III. Depreciation A. Financial Statement Basis: 1. Fixed Assets will be depreciated over their estimated useful lives, as reflected in the City’s Annual Financial Report, in accordance with GASB Statement No. 34. 2. The straight-line method of depreciation will be used for all Fixed Assets, unless it is determined by the Finance Director or his/her designee, and confirmed by the City’s outside auditor, that another depreciation method is more appropriate for a given Fixed Asset or a Fixed Asset class. B. Budgetary Basis: 1. Depreciating Fixed Assets over their useful lives for budgetary purposes is not required but is a recommended practice in that it establishes an Asset Replacement Account for each Fixed Asset. Such a practice increases the City’s annual operating costs, in that depreciation charges become a budgeted expense, however, it levels operating expenses over time because when Fixed Assets are replaced, the funds (or a portion of the funds) have already been set aside and therefore do not need to be re- budgeted. 2. While the City has not previously depreciated Fixed Assets for budgetary purposes, it is the City Council’s intent to do so beginning with the FY 2014- 15 budget, and to continue the practice on a go-forward basis thereafter. C.7.a Packet Pg. 113 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.06 Subject: Disposition of Surplus Property Effective Date: 5/13/14 Page 1 of 1 PURPOSE: To define the process for identification and disposal of surplus City supplies, materials and equipment (collectively referred to as property). POLICY: I. Identifying Surplus Property: A. Departments will be responsible for identifying surplus property within work areas assigned to their control. B. Departments will notify the Finance Director of surplus property by completing a Surplus Property Form (Exhibit A). Such form will include descriptive information on the property (i.e., license number, model number, serial number, condition of the item, reason the item is no longer needed, etc.), along with the location of the property. The form must be approved by the respective department head, Finance Director and City Manager before disposition of the item is authorized. C If the surplus property is a Fixed Asset, as defined in Fiscal Policy No. 1.05, the Fixed Asset identification number must also be included on the Surplus Property Form, so that the City’s Fixed Asset records can be adjusted accordingly. D. If a Fixed Asset is being declared as surplus before its useful life (as reflected in the City’s Fixed Asset records) has been exhausted, detailed justification for the requested disposal must be provided on the Surplus Disposal Form. E. Finance staff, in consultation with the City Manager’s Office, will be responsible for making arrangements to warehouse surplus property, as needed, or determining if the item can be used by another department. F. Information Technology staff will be advised if any of the surplus property is computer or telephone equipment. II. Disposition of Surplus Property: A. Supplies, materials and equipment which are determined to be surplus and to have no further use by the City will be disposed of by Finance staff through trade- in, sale, auction, or donation. B. The City Manager or his/her designee will be responsible for determining which method of disposition will be most advantageous to the City. C. The method of disposition will be reflected on the Surplus Property Form. C.7.a Packet Pg. 114 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) Exhibit A Surplus Property Form Requesting Department Request Date Contact Person Property Description Location Model No. Serial No. Condition Reason No Longer Needed Recommended Disposal Method Trade-in Sale Auction Donation Comments regarding recommended disposal method: If the surplus property is a fixed asset that is not fully depreciated, please provide detailed justification for the requested disposal below. Submitted by: Date Department Head approval Date Disposal endorsed Disposal approved Disposal not endorsed Disposal not approved Finance Director Date City Manager Date Comments: Comments: C.7.a Packet Pg. 115 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 1 of 7 I. PURPOSE AND SCOPE To establish a policy and procedures for identifying acts that might be fraudulent, and to describe the steps to be taken when fraud or other dishonest activities are suspected, and to establish procedures to follow in accounting for missing funds, investigating other irregularities, and providing for restitution and recoveries. II. DEFINITIONS A. Fraud – the intentional false representation, or concealment of material fact for the purpose of personal gain for oneself or others; or inducing another to act similarly. Fraud and other similar irregularities include, but are not limited to: 1. Claim for reimbursement of expenses that are not job-related or authorized by City policy. 2. Forgery or unauthorized alteration of documents (checks, promissory notes, time sheets, agreements, purchase orders, budgets, etc.). 3. Misappropriation of City assets (funds, securities, supplies, furniture, equipment, etc.). 4. Improprieties in handling or reporting of financial transactions. 5. Authorizing or receiving payment for goods not received or services not performed. 6. Computer-related activity involving unauthorized alteration, destruction, forgery, or manipulation of data or misappropriation of City-owned software. 7. Misrepresentation of information on documents. 8. Misrepresentation of authority. 9. Any apparent violation of Federal, State, or Local laws related to dishonest activities or fraud. 10. Seeking or accepting anything of material value from those doing business with the City including vendors, consultants, contractors, lessees, applicants, and grantees. B. Employee – In this context, employee refers to any individual or group of individuals who receive compensation, either full-time or part-time, from the City of Grand Terrace. The term also includes any volunteer who provides services to the City through an official arrangement with the City or a City organization, as well as Council Members, consultants, vendors, C.7.a Packet Pg. 116 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 2 of 7 contractors, outside agencies and/or any other parties with a business relationship with the City of Grand Terrace. C. Management – In this context, management refers to any administrator, manager, director, supervisor, or other individual who manages or supervises funds or other resources, including human resources. D. Investigator – In this context, Investigator refers to any person, persons or governmental agency assigned by the City Manager and/or the City Council to investigate any fraud or similar activity. E. External Auditor – In this context, External Auditor refers to independent audit professionals who perform annual audits of the City’s financial statements. III. POLICY A. The City of Grand Terrace is committed to protecting its assets against the risk of loss or misuse. Accordingly, it is the policy of the City to identify and promptly investigate any possibility of fraudulent or related dishonest activities against the City and, when appropriate, to pursue legal remedies available under the law. B. This policy applies to any irregularity, or suspected irregularity, involving Employees, consultants, vendors, contractors, outside agencies, and/or any other parties with a business relationship with the City. C. Any investigative activity required will be conducted in an objective and impartial manner, without regard to the suspected wrongdoer’s length of service, position, title, or relationship to the City. D. All Employees are responsible for the detection, reporting and prevention of fraud, misappropriations, and other irregularities. E. It is the City’s intent to fully investigate, or cause the investigation of, any suspected act of fraud, misappropriation, impropriety or other similar irregularity. An objective and impartial investigation will be conducted regardless of the position, title, length of service or relationship with the City of any party who might be or become involved in or becomes the subject of such investigation. F. Each department of the City is responsible for instituting and maintaining a system of internal controls to provide reasonable assurance for the prevention and detection of fraud, misappropriations, and other irregularities. Management should be familiar with the types of improprieties that might occur within their area(s) of responsibility and be alert for any indications of such conduct. C.7.a Packet Pg. 117 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 3 of 7 G. Investigator, in conjunction with the City Manager, has the primary responsibility for the investigation of all activity as defined in this policy. H. Should the City Manager be a subject of the investigation, the City Attorney will be substituted for the City Manager in references throughout this policy. Employees or other individuals suspecting any fraudulent activity by the City Manager should report his/her concern directly to the City Attorney. I. Should the City Manager and City Attorney both be subjects of the investigation, the Mayor will be substituted for the City Manager and City Attorney in references throughout this policy. Employees or other individuals suspecting any fraudulent activity by both the City Manager and City Attorney should report his/her concern directly to the Mayor, who will in turn advise the other members of the City Council. J. Throughout the investigation, the Investigator will inform the City Manager and others that he/she designates, of pertinent investigative findings. The City Council shall also be immediately advised of the investigation and kept apprised of its status throughout the investigation. K. Employees will be granted whistle-blower protection when acting in accordance with this policy. When informed of a suspected impropriety, neither the City nor any person acting on behalf of the City shall: 1. Dismiss or threaten to dismiss the Employee, 2. Discipline, suspend, or threaten to discipline or suspend the Employee, 3. Impose any penalty upon the Employee, or 4. Intimidate or coerce the Employee. Violations of the whistle-blower protection will result in discipline up to and including dismissal. L. Upon the conclusion of the investigation of an allegation of fraud said to have been committed by an employee or official, the City Council shall be informed by the City Manager, or by the official whom received the complaint and authorized the investigation, of the outcome of the investigation. This shall be done in manner cognizant of the privacy right, if any, of the accused employee or official, as advised by the City Attorney. M. The City Manager, following review of investigation results, will take appropriate action regarding Employee misconduct. Disciplinary action can include termination, and referral of the case to an appropriate law enforcement agency and District Attorney’s Office for possible arrest and prosecution. C.7.a Packet Pg. 118 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 4 of 7 N. The City will pursue every reasonable effort, including court-ordered restitution, to obtain recovery of City losses from the offender, or other appropriate sources. IV. PROCEDURES A. Management Responsibilities 1. Management is responsible for being alert to, and reporting fraudulent or related dishonest activities in their areas of responsibility. 2. Each City official should be familiar with the types of improprieties that might occur in his or her area(s) of responsibility and be alert for any indication that improper activity, misappropriation, or dishonest activity is or was in existence in his or her area(s). 3. When an improper activity is detected or suspected, Management should determine whether an error or mistake has occurred or if there may be dishonest or fraudulent activity. 4. If Management determines a suspected activity may involve fraud or related dishonest activity, they should contact their next immediate supervisor not involved in the alleged misconduct – and together with that supervisor inform their Department Director (unless the Department Director is alleged to have involvement in the alleged misconduct) and City Manager. 5. If the City Manager is suspected to be involved in the alleged misconduct, the City Attorney should be notified in lieu of the City Manager. If the City Manager and City Attorney are both suspected to be involved in the alleged misconduct, the Mayor should be notified in lieu of the City Manager or City Attorney. The Mayor will, in turn, advise the other members of the City Council. 6. Management should not attempt to conduct individual investigations, interviews, or interrogations. However, Management is responsible for taking appropriate corrective actions to ensure adequate controls exist to prevent reoccurrence of improper actions. 7. Management should support the City’s responsibilities and cooperate fully with the Investigator, other involved departments, and law enforcement agencies in the detection, reporting, and investigation of criminal acts, including the prosecution of offenders. 8. Management must give full and unrestricted access to all necessary records and personnel. All City furniture and contents, including desks and electronic devices, are open to inspection at any time. There is no reasonable expectation of privacy. C.7.a Packet Pg. 119 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 5 of 7 9. In dealing with suspected dishonest or fraudulent activities, great care must be taken. Therefore, management should avoid the following: a. False accusations. b. Alerting suspected individuals that an investigation is underway. c. Treating Employees unfairly. d. Making statements that could lead to claims of false accusations or other offenses. 10. In handling dishonest or fraudulent activities, Management has the responsibility to: a. Make no contact (unless requested) with the suspected individual to determine facts or demand restitution. Under no circumstances should there be any reference to “what you did”, “the crime”, “the fraud”, “the misappropriation”, etc. b. Avoid discussing the case, facts, suspicions, or allegations with anyone outside the City, unless specifically directed to do so by the City Attorney. c. Avoid discussing the case, facts, suspicions, or allegations with anyone other than employees who have a need to know such as the City Manager, City Attorney, Department Head, Finance Director, Investigator, or law enforcement personnel – and should direct any City Council inquiries to the City Manager. d. Direct all inquires from the suspected individual, or his or her representative, to the Investigator. All inquires from the media should be directed to the City Manager. e. Take appropriate corrective and disciplinary action, up to and including dismissal, after consulting with the City Manager, in conformance with the City’s Personnel Rules and Regulations and the appropriate Memorandum of Understanding, as applicable. B. Investigator Responsibilities 1. Upon assignment by the City Manager, the Investigator will promptly investigate the allegations of fraud or other dishonest activities. C.7.a Packet Pg. 120 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 6 of 7 2. Employees must cooperate with the Investigator. Refusal to cooperate, or the conveyance of inaccuracies, may subject an Employee to disciplinary action up to and including dismissal. 3. In all circumstances where there appears to be reasonable grounds for suspecting that a fraud has taken place, the Investigator, in consultation with the City Manager, and City Attorney as appropriate, will contact the appropriate law enforcement agency. 4. The Investigator shall be available and receptive to receiving relevant, confidential information to the extent allowed by law. 5. If evidence is uncovered showing possible dishonest or fraudulent activities, the Investigator will proceed as follows: a. Discuss the findings with the City Manager and City Attorney. b. Meet with the City Manager to: 1) Determine if disciplinary actions should be taken. 2) Notify insurers and coordinate the filing of insurance claims. c. Take immediate action, in consultation with the City Manager and City Attorney, to prevent the theft, alteration, or destruction of evidentiary records. Such action shall include, but is not limited to: 1) Removing the records and placing them in a secure location, or limiting access to the records. 2) Preventing the individual suspected of committing the fraud from having access to the records. 6. In consultation with the City Manager and City Attorney, and the appropriate law enforcement agency, the Investigator may disclose particulars of the investigation to potential witnesses if such disclosure would further the investigation. 7. If the Investigator is contacted by the media regarding an alleged fraud or audit investigation, the Investigator will not speak with the media but will instead refer the matter to the City Manager before a response is made. 8. At the conclusion of the investigation, the Investigator will document the results in a confidential report to the City Manager. If the report concludes that the allegations are founded, the report will be forwarded to the appropriate law enforcement agency and the City Council will be advised. C.7.a Packet Pg. 121 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 7 of 7 9. Unless exceptional circumstances exist, a person under investigation for fraud is to be given notice in writing of essential particulars of the allegations following the conclusions of the audit. Where notice is given, the person against whom allegations are being made may submit a written explanation to the Investigator no later than seven calendar days after notice is received. 10. The Investigator will be required to make recommendations to the appropriate department for assistance in the prevention of future similar occurrences. 11. Upon completion of the investigation, including all legal and personnel actions, all records documents, and other evidentiary material obtained from the department under investigation will be returned to the City Manager. C.7.a Packet Pg. 122 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 2.01 Subject: Accounts Payable Effective Date: 5/13/14 Page 1 of 3 PURPOSE: To define the process for review, authorization and payment of vendor invoices. DEFINITIONS: Check Register: A report provided to the City Council on a monthly basis listing payments made to the various City vendors for the preceding month. Discount: A percentage or fixed amount that may be deducted from payment of a vendor’s invoice if payment is made by a date determined by the vendor. A common discount term is “1% 10”, meaning that one percent (1%) may be deducted from the invoice amount if payment is made with 10 days of the invoice date. EFT: Electronic Funds Transfer; may be used as a payment alternative to City check when authorized by the Finance Director. Invoice: A bill rendered to the City by a vendor requesting payment for goods or services provided to the City. Net 30: A specific type of trade credit where the payment is due in full 30 days after the item is purchased and an invoice received. Purchase Order: A City document authorizing a specified quantity of goods and/or services to be provided to the City at specified prices and terms. Receiving Document: A document provided to the City by a vendor attesting to the delivery of goods and/or services. Statement: A summary provided by a vendor showing amounts previously billed, paid, and the unpaid balance. Vendor: A business entity or agency providing goods and/or services to the City. POLICY: I. Payment Terms A. In order to maintain good business relations with the City’s Vendors, it is the policy of the City of Grand Terrace to pay Invoices for authorized goods or services within 30 days of Invoice receipt; (i.e., on a Net 30 basis) unless specified otherwise by City Purchase Order or contract. C.7.a Packet Pg. 123 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 2.01 Subject: Accounts Payable Effective Date: 5/13/14 Page 2 of 3 B. Invoices offering a Discount should be paid within the Discount terms whenever it is possible to process and pay the Invoice within those terms, unless it is determined by the Finance Director that it is more advantageous from a cash management standpoint to not take the Discount and instead to make payment on a Net 30 basis. (Minimum amounts that qualify for Discount processing may be established by the Finance Director in order to ensure that accelerated Invoice processing is cost effective in relation to the Discount amount.) II. Invoice Processing A. Vendors are to be instructed to mail (or e-mail) their Invoices to the City’s Finance Department, attention Accounts Payable. B. Invoices received in Accounts Payable are to be date stamped the same day as received in order to document the date received by the City. C. Should an Invoice mistakenly be received by a department other than Finance, it should be given to the Finance Department Accounts Payable staff the same day as received, so that the date stamp applied to the Invoice will reflect the date received by the City. D. On a timely basis, Accounts Payable staff should notify the applicable department that ordered the goods or services, that an Invoice has been received, so the responsible departmental staff can review and approve the Invoice for payment. E. Invoice approval shall be in accordance with the City’s Signature Authorization Listing. No Invoice should be paid without proper City authorization. F. If an Invoice is related to a City Purchase Order or contract, the quantity and prices reflected on the Invoice must be verified by the department responsible for the purchase to ensure that they are in agreement with the Purchase Order or contract. G. If an Invoice is provided by Accounts Payable staff to another department for review and approval, Accounts Payable staff must maintain a record of the Invoice and date it was provided to the applicable department to ensure that it is returned to Accounts Payable in time to meet the City’s Net 30 payment policy or Discount terms. If there is a dispute regarding the goods or services that were billed to the City, such that the Net 30 or Discount terms cannot be met, the applicable department must notify Accounts Payable staff of the dispute. H. Only original Vendor Invoices should be processed for payment. Payment should never be made from an Invoice copy or Statement. (Should an original Invoice be lost, such that a Vendor submits a duplicate Invoice for processing, the duplicate Invoice should be stamped as a “Duplicate Original” by Accounts Payable staff.) I. A City check should be mailed for all approved Vendor Invoices within 28 days of the date of Invoice receipt in order to comply with the Net 30 payment policy, allowing two days for mail processing and delivery. Exceptions would be Invoices C.7.a Packet Pg. 124 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 2.01 Subject: Accounts Payable Effective Date: 5/13/14 Page 3 of 3 offering Discount terms, which would be paid sooner than 28 days from receipt in order to qualify for the Discount (also allowing two days for mail processing and delivery) and payments made by EFT. J. If the City’s business software system allows a “three-way matching” process, such that a Purchase Order, Invoice and Receiving Document are electronically matched, this process should be implemented since it is considered to be an industry “best practice” and eliminates the need for Invoices to be manually verified or provided to another department for review and approval. IIII. City Council Approval A. A Check Register will be prepared by the Finance Department and submitted to the City Council for review and approval on a monthly basis during a regularly scheduled City Council meeting. B. The Check Register will list 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. C. In order to meet the Net 30 payment terms, and to take advantage of Discounts offered by Vendors, payment of Invoices will not be delayed pending approval of the Check Register. C.7.a Packet Pg. 125 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 10/11/2022 Page 1 of 6 PURPOSE: The purpose of this policy is to ensure that the City’s purchasing practices are carried out in accordance with the revised Purchasing Ordinance, which was approved by the City Council on November 27, 2012 October 11, 2022. DEFINITIONS: Notice Inviting Bids: A document issued to specified potential bidders, or posted on the City’s website, inviting bids for specified merchandise or service. The subsequent contract is generally awarded to the lowest responsible bidder. Purchase Order: A document which authorizes the delivery of specified merchandise or the rendering of certain service and the making of a charge for such merchandise or service. Purchase Requisition: A document submitted by a department requesting approval to purchase specified merchandise or service. Upon its approval, a Purchase Order is issued to the selected vendor or service provider. Purchasing Officer: The Purchasing Ordinance designates a Purchasing Officer, to be appointed by the City Manager. The City Manager has currently appointed the City’s Finance Director as the Purchasing Officer. Under the direction of this position, the Finance Department is charged with the responsibility of administering the Purchasing Ordinance. Request for Proposals (RFP): A document issued to specified potential service providers, or posted on the City’s website, requesting proposals for services. The subsequent contract is awarded based on a number of factors including professional expertise, experience, service level, references and pricing. Consideration of factors other than pricing differentiates an RFP process from a “Notice Inviting Bids” process. POLICY & PROCEDURES: I. Informal Purchases ($0 -2,500 $500) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. A Purchase Order (P.O.) is not required for purchases. C. Price quotes are not required for purchases, although they are encouraged when easily obtainable. D. Payment for purchases is made by submitting a Request for Payment form with approval by the applicable Department Head or designee (per the Authorized Approval Listing). E. Use of City credit card or petty cash may be appropriate for certain low-value purchases, with separate guidelines applying to these purchases. Formatted: Line spacing: 1.5 lines C.7.a Packet Pg. 126 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 10/11/2022 Page 2 of 6 II. Informal Purchases ($2,500-5,000 501 - $1,000) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. A Purchase Order (P.O.) is required for purchases. C. Price quotes are not required for purchases, although they are encouraged when easily obtainable. D. Payment for purchases is made by submitting a Purchase Requisition form with approval by the applicable Department Head or designee (per the Authorized Approval Listing). E. Approval from the City Manager is required. III. Open Market Purchases ($5,001-25,000 1,001 - $10,000) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. Three (3) informal price quotes must be obtained. C. A Purchase Requisition must be submitted to Finance by the requesting department with the price quotes attached as back-up. Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing). D. Following Finance review of the Purchase Requisition, a P.O. will be issued by Finance and mailed to the vendor, with a copy returned to the originating department. Funds will also be encumbered in the financial system at this time. (Note: P.O.s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met.) E. Invoices to be paid against an approved P.O. do not require a Request for Payment form. Instead, to expedite processing, an approval stamp may be utilized on the invoice referencing the applicable P.O. (The account code to be charged does not need to be referenced on the invoice unless the P.O. is allocated to multiple account numbers, as the invoice will be charged per the P.O.) Department Head or designee signature is required on the invoice (per the Authorized Approval Listing). IV. Formal Purchases (over $25,000 10,000 ) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. C.7.a Packet Pg. 127 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 10/11/2022 Page 3 of 6 B. Formal contracting procedures must be followed as enumerated in Section 3.24.080 of the Purchasing Ordinance, including: 1. Notice Inviting Bid 2. Bidders’ List 3. Bidders’ Security 4. Bid Opening Procedure 5. Performance Bonds as applicable 6. Formal Award of Contract by the City Council C. Following award of contract, a Purchase Requisition should be submitted by the applicable department, with a copy of the executed contract and City Council staff report attached as backup. Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing). D. Following Finance review of the Purchase Requisition, a P.O. will be issued by Finance and mailed to the vendor, with a copy returned to the originating department. Funds will also be encumbered in the financial system at this time. (Note: P.O.s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met.) E. Invoices to be paid against an approved P.O. do not require a Request for Payment form. Instead, to expedite processing, an approval stamp may be utilized on the invoice referencing the applicable P.O. number. (The account code to be charged does not need to be referenced on the invoice unless the P.O. is allocated to multiple account numbers, as the invoice will be charged per the P.O.) Department Head or designee signature is required on the invoice (per the Authorized Approval Listing). V. Professional Services A. Professional Services are not awarded via formal bidding, since there are a number of factors other than pricing used to determine the company that is best suited to provide the service. Such factors include professional expertise, experience, service level and references. B. Although not formally bid, it is recommended that professional services with an expected value greater than $10,000 utilize a competitive selection process via a Request for Proposals (RFP). C. RFPs should be posted on the City’s web page and distributed to known companies with expertise in the applicable service area. Generally, at least 30 days should be allowed for proposal submittal following the RFP issuance date. It may also be appropriate to schedule a pre-submittal conference to clarify the RFP and respond to the interested parties’ questions. D. Contracts for professional services with a value of $25,000 10,000 or less may be awarded by the City Manager. C.7.a Packet Pg. 128 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 10/11/2022 Page 4 of 6 E. Contracts for professional services with a value greater than $25,000 10,000 must be awarded by the City Council. F. Following award of contract, a Purchase Requisition should be submitted by the applicable department, with a copy of the executed contract and City Council staff report (if applicable) attached as backup. Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing). G. Following Finance review of the Purchase Requisition, a P.O. will be issued by Finance and mailed to the vendor, with a copy returned to the originating department. Funds will also be encumbered in the financial system at this time. (Note: P.O.s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met.) H. Invoices to be paid against an approved P.O. do not require a Request for Payment form. Instead, to expedite processing, an approval stamp may be utilized on the invoice referencing the applicable P.O. number. (The account code to be charged does not need to be referenced on the invoice unless the P.O. is allocated to multiple account numbers, as the invoice will be charged per the P.O.) Department Head or designee signature is required on the invoice (per the Authorized Approval Listing). VI. Single Source Purchases / Waiver of Bidding / Piggy Backing A. If it is determined that only one company is available or capable of providing the desired goods or services, the purchase may be approved without obtaining price quotes (purchases of $5,001 to $25,000 $1,001 to $10,000), conducting formal bidding (purchases over $25,000 10,000), or utilizing an RFP process (professional services over $25,000 10,000), provided that approval is received for the single source purchase, as follows: 1. Purchases with a value of $5,001 - $25,000 $1,001 - $10,000: Memo explaining the basis for the single source purchase must be submitted by the applicable Department Head along with the Purchase Requisition and approved by the City Manager. 2. Purchases with a value greater than $25,000 10,000: Approval for the single source purchase must be submitted via a staff report in conjunction with the contract award and approved by the City Council. B. If a purchase is not considered to be single source but a waiver of bidding/competitive selection is requested because it is in the best interest of the City, approvals must be obtained by the City Manager ($5,001 - $25,000 $1,001 - $10,000) or City Council (over $ 25,000 $10,000) as described above. C. Justification must be provided if a waiver of bidding/competitive selection is requested. A waiver is an exception to the competitive bid process. As a result, C.7.a Packet Pg. 129 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 10/11/2022 Page 5 of 6 explanation/documentation is required to begin the review process. Below are examples for requesting the waiver of the bid/competitive selection process: i. Sole Source: Only one company is available/capable of performing the task or providing the goods or services; the goods or services provided by a specific company are unique in quality, performance, or use specifications. ii. Time Sensitive: The need for the desired good/service is needed to correct or prevent an emergency; iii. Intrinsic Value: When a good or service is determined by its historic, artistic, or educational value. D. If the City has determined that another municipality (host agency) has completed the competitive bid/RFP process awarding a contract within the last 6 months for goods and/or services that the City may require, in order to avoid time and costs, the City has the option to “piggyback” on the public agency’s existing contract provided the following requirements are met: i. Approval must comply with the purchasing policy as follows: a. $0 - $2,500 $500 requires Department Head approval; b. $2,501 - $25,000 501 - $10,000 requires City Manager approval; and c. Over $25,000 10,000 requires City Council approval. ii. The other public agency’s bid and contract award process meet’s the City’s bid and contract award requirements; iii. The host agency and the City (piggybacking agency) must sign an agreement allowing the piggyback; iv. The vendor/contractor must agree to the piggyback, offering the same terms and conditions written in their contract to the piggyback agency; and v. The vendor must inform both the host agency and the piggybacking agency in writing that they agree to the piggyback. VII. Contract Requirements A. If a purchase involves work to be performed on City premises or the public right of way, regardless of the dollar amount, a City contract is recommended to adequately address liability issues. If there is uncertainty regarding whether or not a contract is needed for a given purchase, the City Attorney should be consulted. C.7.a Packet Pg. 130 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 10/11/2022 Page 6 of 6 B. Contracts up to $25,000 10,000 in value may be approved by the City Manager, following City Attorney approval as to legal form. Whenever possible, the standard City contract form should be used. C. Contracts over $25,000 10,000 in value require City Council approval via the agenda process. D. Contracts should include a requirement for the service provider to obtain a City Business License. The department administering the contract is responsible for coordinating with Finance to ensure that a Business License is obtained if the contract value is $25,000 10,000 or less (City Manager approval). If the contract value is greater than $25,000 10,000 (City Council approval), the City Clerk’s Office will coordinate with Finance to ensure that a Business License is obtained. E. The department administering the contract is also responsible for obtaining the insurance certificates from the service provider and verifying that the coverage conforms to the contract requirements if the contract value is $25,000 10,000 or less (City Manager approval). If the contract value is greater than $25,000 10,000 (City Council approval), the City Clerk’s Office will be responsible for obtaining the insurance certificates from the service provider and verifying that the coverage conforms to the contract requirements. VIII. Conflict of interest and unlawful activity E. A. Any evaluation or selection practice that would result in unlawful activity including, but not limited to, kickbacks or unlawful consideration is expressly prohibited. Any award of a contract where an employee, officer or agent has used his or her position with the City to influence a governmental decision in which he or she knows or has reason to know that he or she has a financial interest in any person or entity who seeks such a contract or in the outcome of the selection process in any way, is expressly prohibited. Formatted: Indent: Left: 0" Formatted: Normal, Indent: Left: 0", Hanging: 0.5", No bullets or numbering, Tab stops: Not at 1.04" Formatted: Font: (Default) Arial, 11 pt C.7.a Packet Pg. 131 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 1 of 8 1.0 STATEMENT OF POLICY It is the policy of the City of Grand Terrace to: • Institute practices that reduce waste by increasing product efficiency and effectiveness; Purchase products that minimize environmental impacts, toxics, pollution, and hazards to worker and community safety; • Purchase products that reduce greenhouse gas emissions in their production, shipping, use and discard; and • Purchase products that include recycled content, are durable and long-lasting, and conserve energy and water 2.0 PURPOSE This Policy is adopted in order to: • Conserve natural resources, • Minimize environmental impacts such as pollution and use of water and energy, • Eliminate or reduce toxics that create hazards to workers and our community, • Support strong recycling markets, • Reduce materials that are landfilled, • Increase the use and availability of environmentally preferable products that protect the environment, • Identify environmentally preferable products and distribution systems, • Reward manufacturers and vendors that reduce environmental impacts in their production and distribution systems or services, and • Create a model for successfully purchasing environmentally preferable products and encourage other purchasers in our community to adopt similar goals. 3.0 STRATEGIES FOR IMPLEMENTATION 3.1 Source Reduction 3.1.1 Institute practices that reduce waste, encourage reuse, and result in the purchase of fewer products. C.7.a Packet Pg. 132 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 2 of 8 3.1.2 Purchase remanufactured products such as toner cartridges, tires, furniture, equipment and automotive parts when possible. 3.1.3 Consider short-term and long-term costs in comparing product alternatives. This includes evaluation of total costs expected during the time a product is owned, including, but not limited to, acquisition, extended warranties, operation, supplies, maintenance and replacement parts, disposal costs and expected lifetime compared to other alternatives. 3.1.4 Purchase products that are durable, long lasting, reusable or refillable and to the extent possible avoid purchasing one-time use or disposable products. 3.1.5 Request vendors eliminate packaging or use the minimum amount necessary for product protection. Vendors shall be encouraged to take back packaging for reuse. 3.1.6 Specify a preference for packaging that is reusable, recyclable or compostable, when suitable uses and programs exist. 3.1.7 Encourage vendors to take back and reuse pallets and other shipping materials. 3.1.8 Encourage suppliers of electronic equipment, including but not limited to computers, monitors, printers, and copiers, to take back equipment for reuse or environmentally sound recycling when the City of Grand Terrace discards or replaces such equipment, whenever possible. 3.1.9 Consider provisions in contracts with suppliers of non-electronic equipment that require suppliers to take back equipment for reuse or environmentally sound recycling when the City of Grand Terrace discards or replaces such equipment, whenever possible. 3.1.10 Promote electronic distribution of documents rather than printing or copying. 3.1.11 When producing paper documents, print and copy all documents on both sides to reduce the use and purchase of paper. Printers and copiers shall be set to default to duplex. 3.1.12 Reduce the number and type of equipment needed to perform office functions to save energy and reduce purchasing and maintenance costs. Eliminate desktop printers, redundant network printers and reduce the number of fax machines leased or owned by the City of Grand Terrace. Consider lease or purchase of multi- function devices. 3.1.13 Ensure all imaging equipment is installed with energy and resource-efficient settings set as default. C.7.a Packet Pg. 133 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 3 of 8 3.2 Recycled Content Products 3.2.1 Purchase products for which the United States Environmental Protection Agency (U.S. EPA) has established minimum recycled content standard guidelines, such as those for printing paper, office paper, janitorial paper, construction, landscaping, parks and recreation, transportation, vehicles, miscellaneous and non-paper office products. 3.2.2 Purchase multi-function devices, copiers and printers compatible with the use of recycled content and remanufactured products. 3.2.3 To the extent feasible and in accordance with California Public Contract Code, Sec. 10409, purchase re-refined lubricating and industrial oil for use in its vehicles and other equipment, as long as it is certified by the American Petroleum Institute (API) as appropriate for use in such equipment. This section does not preclude the purchase of virgin-oil products for exclusive use in vehicles whose warranties expressly prohibit the use of products containing recycled oil. 3.2.4 Ensure pre-printed recycled content papers intended for distribution that are purchased or produced contain a statement that the paper is recycled content and indicate the percentage of post-consumer recycled content. 3.3 Energy Efficient and Water Saving Products 3.3.1 Purchase energy-efficient equipment with the most up-to-date energy efficiency functions. This includes, but is not limited to, high efficiency space heating systems and high efficiency space cooling equipment. 3.3.2 Replace inefficient interior lighting with energy-efficient equipment when possible. 3.3.3 Replace inefficient exterior lighting, street lighting and traffic signal lights with energy-efficient equipment when possible. Minimize exterior lighting where possible to avoid unnecessary lighting of architectural and landscape features while providing adequate illumination for safety and accessibility. 3.3.4 Purchase U. S. EPA Energy Star certified products when available. 3.3.5 Purchase U.S. EPA WaterSense labeled water-saving products when available. This includes, but is not limited to, high-performance fixtures like toilets, low-flow faucets and aerators, and upgraded irrigation systems. 3.4 Green Building Products and Practices 3.4.1 Consider Green Building practices for design, construction, and operation as described in the LEED Rating Systems for all building and renovations undertaken by the City of Grand Terrace. C.7.a Packet Pg. 134 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 4 of 8 3.5 Landscaping Products and Practices 3.5.1 Select plants to minimize waste by choosing species for purchase that are appropriate to the microclimate, species that can grow to their natural size in the space allotted them, and perennials rather than annuals for color. Native and drought-tolerant plants that require no or minimal watering once established are preferred. 3.5.2 Hardscapes and landscape structures constructed of recycled content materials are encouraged. Limit the amount of impervious surfaces in the landscape. Permeable substitutes, such as permeable asphalt or pavers, are encouraged for walkways, patios and driveways. 3.6 Toxics and Pollution Prevention Products and Practices 3.6.1 Manage pest problems through prevention and physical, mechanical and biological controls when the City of Grand Terrace and its contractors maintain buildings and landscapes. 3.6.2 Use products with the lowest amount of volatile organic compounds (VOCs), highest recycled content, low or no formaldehyde and no halogenated organic flame retardants when purchasing building maintenance materials such as paint, carpeting, adhesives, furniture and casework. 3.6.3 Prohibit the purchase of products that use polyvinyl chloride (PVC) such as, but not limited to, furniture and flooring. 3.6.4 Purchase products and equipment with no lead or mercury whenever possible. For products that contain lead or mercury, the City of Grand Terrace should give preference to those products with lower quantities of these metals and to vendors with established lead and mercury recovery programs. In addition, whenever lead- or mercury-containing products require disposal, the City of Grand Terrace will dispose of those products in the most environmentally safe manner possible. All fluorescent lamps and batteries will be recycled. 3.6.5 Purchase or specify commercial carpeting that meets NSF/ANSI 140 Standard for Sustainable Carpet Assessment and require old carpet that is removed be recycled. 3.6.6 When replacing vehicles, consider less-polluting alternatives to diesel such as compressed natural gas, bio-based fuels, hybrids, electric batteries, and fuel cells, as available. 3.7 Bio-Based Products 3.7.1 Encourage the use of vehicle fuels made from non-wood, plant-based contents such as vegetable oils whenever practicable. C.7.a Packet Pg. 135 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 5 of 8 3.7.2 Use paper, paper products and construction products made from non-wood, plant- based contents such as agricultural crops and residues when feasible. 3.7.3 Use bio-based plastic products that are biodegradable and compostable, such as bags, film, food and beverage containers, and cutlery when feasible. 3.7.4 Purchase compostable plastic products that meet American Society for Testing and Materials (ASTM) standards as found in ASTM D6400. Meet ASTM D6868 standards for biodegradable plastics used as coatings on paper and other compostable substrates when feasible. 3.8 Forest Conservation Products 3.8.1 To the greatest extent practicable, do not procure wood products such as lumber and paper that originate from forests harvested in an environmentally unsustainable manner. 3.8.2 Encourage the purchase or use of previously used or salvaged wood and wood products whenever practicable. 4.0 RESPONSIBILITIES 4.1 City of Grand Terrace recognizes its duty to act in a fiscally responsible as well as a timely manner. 4.2 Nothing contained in this policy shall be construed as requiring a department, purchaser or contractor to procure products that do not perform adequately for their intended use, exclude adequate competition, risk the health or safety of workers and citizens, or are not available at a reasonable price in a reasonable period of time. 4.3 Nothing contained in this policy shall be construed as requiring the City of Grand Terrace, department, purchaser, or contractor to take any action that conflicts with local, state or federal requirements. 4.4 Grand Terrace has made significant investments in developing a successful recycling system and recognizes that recycled content products are essential to the continuing viability of that recycling system and for the foundation of an environmentally sound production system. 5.0 IMPLEMENTATION 5.1 The Director of Finance shall implement this policy in coordination with other appropriate Grand Terrace personnel. C.7.a Packet Pg. 136 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 6 of 8 5.2 Upon request, buyers making the selection from competitive bids shall be able to provide justification for product choices that do not meet the environmentally preferable purchasing criteria in this policy. 5.3 Encourage vendors, contractors and grantees to comply with applicable sections of this policy for products and services provided to the City of Grand Terrace. 6.0 PROGRAM EVALUATION 6.1 The Director of Finance shall periodically evaluate the success of this policy’s implementation and report to the City Council. 7.0 DEFINITIONS 7.1 “American Society for Testing and Materials” means ASTM International, an open forum for the development of high quality, market relevant international standards use around the globe. 7.2 “Bio-Based Products” means commercial or industrial products (other than food or feed) that utilize agricultural crops or residues but does not include products made from forestry materials. 7.3 “Biodegradable plastic” means the degradation of the plastic must occur as a result of the action of naturally occurring microorganisms. 7.4 “Buyer” means anyone authorized to purchase or contract for purchases on behalf of this jurisdiction or its subdivisions. 7.5 “Compostable plastic” means plastic that is biodegradable during composting to yield carbon dioxide, water and inorganic compounds and biomass, at a rate consistent with other known compostable materials and leaves no visually distinguishable or toxic residues. 7.6 “Contractor” means any person, group of persons, business, consultant, designing architect, association, partnership, corporation, supplier, vendor or other entity that has a contract with the City of Grand Terrace or serves in a subcontracting capacity with an entity having a contract with the City of Grand Terrace for the provision of goods or services. 7.7 “Degradable plastic” means plastic that undergoes significant changes in its chemical structure under specific environmental conditions. 7.8 “Energy Star” means the U.S. EPA’s energy efficiency product labeling program. C.7.a Packet Pg. 137 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 7 of 8 7.9 “Energy-Efficient Product” means a product that is in the upper 25% of energy efficiency for all similar products, or that is at least 10% more efficient than the minimum level that meets Federal standards. 7.10 “Federal Energy Management Program” is a program of the Department of Energy that issues a series of Product Energy Efficiency Recommendations that identify recommended efficiency levels for energy-using products. 7.11 “LEED Rating System” means the most recent version of the Leadership in Energy and Environmental Design (LEED) Rating System, approved by the U.S. Green Building Council, and designed for rating new and existing commercial, institutional, and residential buildings. 7.12 “NSF/ANSI” means NSF International follows the American National Standards Institute (ANSI) standards development process. Standards are developed by joint committees (balanced stakeholder groups of public health, industry and user representatives). 7.13 "Post-consumer Material" means a finished material which would normally be disposed of as a solid waste, having reached its intended end-use and completed its life cycle as a consumer item, and does not include manufacturing or converting wastes. 7.14 “Pre-consumer Material” means material or by-products generated after manufacture of a product is completed but before the product reaches the end-use consumer. Pre-consumer material does not include mill and manufacturing trim, scrap, or broke which is generated at a manufacturing site and commonly reused on-site in the same or another manufacturing process. 7.15 “Recovered Material” means fragments of products or finished products of a manufacturing process, which has converted a resource into a commodity of real economic value, and includes pre-consumer and post-consumer material but does not include excess resources of the manufacturing process. 7.16 “Recycled Content” means the percentage of recovered material, including pre- consumer and post-consumer materials, in a product. 7.17 “Recycled Content Standard” means the minimum level of recovered material and/or post-consumer material necessary for products to qualify as “recycled products.” 7.18 “Recycled Product” means a product that meets the City of Grand Terrace’s recycled content policy objectives for post-consumer and recovered material. 7.19 “Remanufactured Product” means any product diverted from the supply of discarded materials by refurbishing and marketing said product without substantial change to its original form. C.7.a Packet Pg. 138 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 8 of 8 7.20 “Reused Product” means any product designed to be used many times for the same or other purposes without additional processing except for specific requirements such as cleaning, painting or minor repairs. 7.21 “Source Reduction” refers to products that result in a net reduction in the generation of waste compared to their previous or alternate version and includes durable, reusable and remanufactured products; products with no, or reduced, toxic constituents; and products marketed with no, or reduced, packaging. 7.22 “U.S. EPA Guidelines” means the Comprehensive Procurement Guidelines established by the U.S. Environmental Protection Agency for federal agency purchases as of October 2007 and any subsequent versions adopted. 7.23 “Water-Saving Products” are those that are in the upper 25% of water conservation for all similar products, or at least 10% more water-conserving than the minimum level that meets the Federal standards. 7.24 “WaterSense” means a partnership program by the U.S. Environmental Protection Agency. Independent, third-party licensed certifying bodies certify that products meet EPA criteria for water efficiency and performance by following testing and certification protocols specific to each product category. Products that are certified to meet EPA specifications are allowed to bear the WaterSense label. 8.0 EFFECTIVE DATES 8.1 This policy shall take effect on November 15, 2016. C.7.a Packet Pg. 139 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.02 Subject: Budget Appropriation Adjustments Effective Date: 5/13/14 Page 1 of 3 PURPOSE: To establish policies and procedures regarding changes to appropriation amounts after adoption of the Annual Budget by the City Council. DEFINITIONS: Type A Adjustments: New or increased appropriations necessary to fund service level changes, new programs, fixed assets, and expenditures in excess of approved budget amounts. Type B Adjustments: New or increased appropriations with offsetting revenues such that there is no net budgetary impact. Type C Adjustments: Transfer of budget amounts from one operating program to another in different funds and/or departments. Type D Adjustments: Transfer of budget amounts from a Capital Improvement Plan (CIP) project to another, regardless of fund. Type E Adjustments: Transfer of budget amounts from one division, program, or object code to another within the same fund and department. POLICY: I. Responsibility A. Budget adjustments shall be processed at such time it is determined that additional funds are needed in a program (business unit) so that expenditures will not exceed the City Council approved appropriation for the program (business unit). This shall apply to operating programs as well as capital projects. B. Every budget adjustment request requires the completion of a Budget Appropriation Adjustment (BAA) Form. Written justification is required on the BAA Form for all requests. II. Procedures and Required Approvals A. Type A: New or increased appropriations from reserves or fund balance 1. New or increased appropriations from reserves or fund balance shall require City Council approval. A properly completed BAA Form must be submitted as an attachment to the City Council staff report describing the appropriation request. The Finance Department will retain the BAA Form following its review and verification; it will not be included as an attachment to the final staff report. 2. These adjustments must be approved by the City Council prior to commitment of funding in excess of budgeted amounts. C.7.a Packet Pg. 140 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.02 Subject: Budget Appropriation Adjustments Effective Date: 5/13/14 Page 2 of 3 B. Type B: New or increased appropriations with offsetting revenues; no net budgetary impact 1. The City Manager is authorized to approve such appropriations. 2. This type of appropriation adjustment shall require the following approvals: Requestor: Program Supervisor/Manager Approval: Department Head Approval: Finance Director Approval: City Manager or designee C. Type C: Transfers of budget amounts between operating programs in different funds and/or departments, regardless of fund, shall require the following approvals: 1. The City Manager is authorized to approve such appropriations. 2. This type of appropriation adjustment shall require the following approvals: Requestor: Program Supervisor/Manager Approval: Department Head Approval: Finance Director Approval: City Manager or designee D. Type D: Transfer of budget amounts between Capital Improvement Plan (CIP) projects, regardless of fund, shall require the following approvals: 1. The City Manager is authorized to approve such appropriations. 2. This type of appropriation adjustment shall require the following approvals: Requestor: Program Supervisor/Manager Approval: Department Head Approval: Finance Director Approval: City Manager or designee E. Type E: Transfer of budget amounts from one division, program, or object code to another within the same fund and department shall require the following approvals: 1. The Finance Director is authorized to approve such appropriations. 2. This type of appropriation adjustment shall require the following approvals: Requestor: Program Supervisor/Manager Approval: Department Head Approval: Finance Director III. Request Procedures Requests for Budget Appropriation Adjustments shall be completed on the authorized BAA Form (Exhibit A). C.7.a Packet Pg. 141 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.02 Subject: Budget Appropriation Adjustments Effective Date: 5/13/14 Page 3 of 3 IV. Routing and Follow-up A. Type A adjustments (City Council approval required) 1. The department requesting the appropriation adjustment is responsible for completing the BAA request form and attaching it to the corresponding City Council staff report. 2. The Finance Director will retain the BAA Form following its review and verification; it will not be forwarded with the staff report for subsequent reviews and approvals, nor included as an attachment to the staff report. 3. Upon Council approval, the Finance Department will process the budget adjustment, with no further approvals on the BAA Form required. B. All Other Types of Adjustments 1. The department shall prepare the BAA Form and specify in the justification box of the form, the reason for the adjustment request. If there is insufficient room for the justification, an additional Word document specifying the purpose or need for the adjustment may be attached. 2. After departmental staff signatures are obtained, the BAA Form should be routed to the Finance Director for review and final processing. V. City Council Staff Reports A. The recommendation and fiscal impact sections of the report to City Council should include specific reference to the nature of the appropriation adjustment. 1. If the adjustment is to increase an amount of an existing budgeted project or program, the proper account codes must be included in the recommended action. 2. If the request is for a new project or program, the report should indicate the proposed funding sources and amounts of appropriations required. 3. In addition, if new revenue sources are associated with the proposed project/program (i.e., grants, special revenues, etc.) these should be included and identified in the recommended City Council action so that appropriate revenue accounts can be adjusted. 4. A properly completed BAA Form must be submitted as an attachment to the City Council staff report describing the appropriation request. The Finance Department will retain the BAA Form following its review and verification; it will not be included as an attachment to the final staff report. C.7.a Packet Pg. 142 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) Date: Department: Cost Center: Type of Adjustment: New/Additional Appropriations (Expense) from Reserves/Fund Balance Required Signatures: 1: Requestor 2: Dept. Head 3: Finance Dept. 5: City Manager 6: City Council New/Additional Appropriations (Expense) with offsetting Revenue (no net budgetary impact). Required Signatures: 1: Requestor 2: Dept. Head 3: Finance Dept. 5: City Manager Transfers between Funds & Departments (Inter-fund/Inter-Departmental Transfers) Required Signatures: 1: Requestor 2: Dept. Head 3: Finance Dept. 5: City Manager Transfers between Capital Improvement Program (CIP) projects within the same fund (no net budgetary impact) Required Signatures: 1: Requestor 2: Dept. Head 3: Finance Dept. 5: City Manager Transfers between Cost Centers within the same Department & Fund (no net budgetary impact) Required Signatures: 1: Requestor 2: Dept. Head 3: Finance Dept. Revenue Current Budget Increase/ (Decrease) Revised/ Budget Expense Current Budget Increase/ (Decrease) Revised/ Budget Transfer OUT (From) Current Budget Increase/ (Decrease) Revised/ Budget Transfer IN (To) Current Budget Increase/ (Decrease) Revised/ Budget Prepared by: Requestor Extension:Date: Authorization: Department Head Extension:Date: Approval as to Funds: Finance Department Extension:Date: Authorization: City Manager Extension:Date: TOTAL TOTAL Council Action No. Justification/Reason for Budget Appropriation Adjustment Justification/Reason for Budget Appropriation Adjustment EXHIBIT A - City of Grand Terrace Budget Appropriation Adjustment (BAA) Form Council Action Date GL Account No. GL Account No. Note: For Type A adjustments, please attach minutes from the City Council meeting to provide documentation of City Council approval. Signature by the Mayor on the BAA Form is not required. Account Description Justification/Reason for Budget Appropriation Adjustment GL Account No. GL Account No. Justification/Reason for Budget Appropriation AdjustmentAccount Description TOTAL TOTAL Account Description Account Description A) B) C) D) E) C.7.a Packet Pg. 143 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 1 of 110 PURPOSE: This policy establishes the basic guidelines for travel on City business. It defines the City’s expectations of its employees (and other City officials) who are required to travel in connection with their work responsibilities, identifies which expenses will be advanced or reimbursed to the employee by the City, and which expenses are considered the personal responsibility of the employee. Business travel is defined as authorized attendance at conferences and seminars, or authorized travel for any other purpose in connection with official City responsibilities. Business travel includes one-day trips and trips requiring one or more overnight stays. As a general rule, this policy is not intended to cover business meetings of less than one day involving travel of less than 150 miles round trip, even though employees may be reimbursed for their cost of meals and travel. In such cases Department Head discretion is required and departments may decide that such travel fits within the scope of this policy. As an example, a day trip to Los Angeles to attend a business meeting will likely involve meals and transportation expense reimbursement. However, such travel may involve less than $100 of expenditures and are generally not considered as part of the scope of this policy. POLICY: I. General Standards A. Mandatory Use of the Travel Authorization & Expense Reporting Form (Exhibit A). The Travel Authorization & Expense Reporting Form (Travel Form) is a mandatory document for all employees, whether or not one expects to receive a travel advance or reimbursement for business related travel expenses. It serves as an estimate of the total cost of attending conferences, meetings and seminars, and provides documentation of cash advances, vendor payments and credit card purchases. Equally important, it serves as documented authorization to travel on City business and helps identify when the employee is traveling on behalf of the City in case of an accident or other incident. The requirement to submit a Travel Form also applies to City Council Members and other appointed officials (such as Planning Commissioners), who will coordinate travel with the City Manager’s Office and obtain City Manager approval of the Travel Form as a prudent internal control measure. B. Policy Emphasizes Economy and Practicality with Reasonable Subsistence and Accommodations while on City Business 1. This policy provides for reasonable subsistence, modes of travel, and lodging and accommodations while on City business. The intent is to allow employees to eat in moderately priced restaurants, stay in moderately priced hotels, and travel comfortably. Employees are responsible for using good judgment in C.7.a Packet Pg. 144 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 2 of 110 making reservations, and travel decisions should emphasize economy and efficiency at all times. For example: a. When using air travel, employees should always book flights in coach as opposed to first class. b. Although the Internet offers numerous specials and low-priced flights, flexibility is often sacrificed and sales are often final. Employees should consider this when booking their flights and can be held personally accountable if a flight is booked incorrectly, costing the City money. To provide more flexibility, designated travel agencies should be used. c. When choosing a hotel for a conference, it is preferable to stay at the hotel where the conference is being held even though it may be slightly more expensive than others in the area. 2. It is permissible to combine personal travel with business travel, such as departing for a business conference a few days early to utilize personal vacation time. But only strictly business-related expenses will be advanced or reimbursed and personal travel shall not result in higher business travel costs or they must be reimbursed to the City. D. Policy is Not Intended to be All Inclusive 1. This policy is not intended to address every issue, exception or contingency that may arise in the course of City travel or attendance at meetings. 2. Accordingly, the basic standard that should always prevail is to use good judgment and economy in the use and stewardship of City funds. II. Travel Authorization & Expense Reporting Form (“Travel Form”) A. Travel Authorization 1. Travel Authorization approval by Department Head and City Manager is required whenever: a. Total estimated cost will exceed $200; or b. Overnight accommodations will be required. 2. Department Head authorization is acceptable for employee travel that is estimated at $200 or less and does not involve overnight accommodations. 3. Travel Restrictions a. Out-of-state travel authorizations require approval by the City Manager (or his/her designee). C.7.a Packet Pg. 145 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 3 of 110 b. Department Head travel authorizations require approval of the City Manager (or his designee). 4. Determining Methods of Payment for Travel Expenses a. The City will pay for legitimate and reasonable travel-related business expenses, including transportation, lodging, registration fees, meals, and any other related expenses if they are for official business and fit within these guidelines. b. There are four methods of payment for travel-related expenses: (1) direct payment to vendors by check; (2) payment by City credit card (secured in the Finance Department); (3) reimbursement to the employee for out-of- pocket expenses; and (4) cash advances, which include per diem. c. Direct payments to vendors are made by the City to an organization to pay for specific costs related to the trip. These costs usually include registration fees, lodging and airfare. d. City credit card (may be used to prepay travel expenses, including registration fees, lodging and airfare, or may be used to cover expenses as they arise on the trip. Credit cards may not be used to advance per diem. e. The employee will be reimbursed for actual, reasonable and allowable out-of-pocket expenses related to travel on City business. The employee must account for out-of-pocket expenses with receipts. f. Cash advances, including per diem, are lump sum payments made to the employee prior to one’s travel based on reasonable estimated expenses. Ground transportation is often difficult to estimate, but may be advanced to the employee using reasonable estimates based on the itinerary. Upon the employee’s return, and with the exception of per diem expenses, the employee must account for advanced expenses with receipts. Advances exceeding substantiated expenses must be returned to the City. If authorized expenses (excluding meals and incidentals covered by per diem) exceed the amount advanced, the City will reimburse the employee for the difference. Note: Receipts are not needed to justify meals and incidental expenses covered by per diem. g. To obtain direct vendor payments or to receive a cash advance, the employee must do the following prior to his trip: 1) Complete the appropriate sections of the Travel Form. C.7.a Packet Pg. 146 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 4 of 110 2) Attach documentation for all payments requested. This would include copies of registration forms, announcements, itineraries, and copies of seminar brochures that provide detail of costs. 3) Attach completed and signed Direct Pay Request forms for all travel-related payment requests. a) Include the appropriate authorization signatures. b) Retain a copy of the completed form to reconcile and account for actual expenses upon return from trip. c) Submit the Travel Form and any Direct Pay Request forms to the Accounts Payable section of the Finance Department. 5. Per Diem (Meals and Incidentals) a. Meals and incidentals, as defined by Internal Revenue Service (IRS) guidelines, include all meals and miscellaneous hotel services, such as tips to waiters and porters. Per Diem will be paid at the current rates established by IRS guidelines determined by the minimum federal per diem rate table for the City’s region. All IRS tax rules will apply. b. By IRS regulations, per diem is defined as travel subsistence extending beyond one day and there is no requirement to provide receipts. However, for one day or partial days of travel, meals expense receipts are required and the standard one day, non-per diem meal allowance will be $79 45 allocated as follows: Breakfast: $ 8.00 18.00 Lunch: $12.00 20.00 Dinner: $25.00 36.00 Incidentals: $5.00 If an employee is advanced money for one-day or partial day meals and the total amount of all receipts is less than the amount advanced, the difference must be reimbursed to the City. Conversely, if the employee exceeds the total one-day or partial day standard non-per diem meal allowance and is requesting reimbursement, receipts MUST be provided and reimbursement shall be at the discretion of the Finance Director based on the circumstances. c. As a general rule, employees are expected to base their requests for daily meals and incidentals according to the federal per diem rates. C.7.a Packet Pg. 147 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 5 of 110 d. As an alternative, an employee can elect not to receive per diem and request reimbursement of actual, reasonable and allowable subsistence expenses that are substantiated with receipts. This alternative must be approved in advance and receipts must accompany the request for reimbursement. However, a combination of per diem and reimbursement of meals and incidental business expenses is prohibited. e. Partial per diem for travel of more than one day may be advanced depending on the employee’s departure time and return time. The request for partial or full per diem will be based on the employee’s itinerary and will be granted based on a “fair and reasonable” request. Partial days per diem will be prorated as follows: 1) Travel of less than 12 hours in a day will be prorated to one-half day of per diem. 2) Travel of 12 hours or more in a day will count as a full day for per diem. For example, assuming a daily per diem of $79 45, if an employee leaves on Monday at 6:00 A.M. to San Francisco for a business conference and returns to work at 1:00 P.M. on Tuesday, the per diem advance would be $158 90. 6. Other Expenses a. Alcoholic Beverages – Expense reimbursement for alcoholic beverages will not be allowed. b. Spouses and Guests – Spouses and guests are welcome to accompany employees on City travel and at conferences, seminars and meetings. However, any additional costs associated with the participation of a spouse or guests are the responsibility of the employee. 7. Method of Travel a. When planning the transportation portion of the trip, the employee must consider all aspects of cost to the City, such as daily expenses, overtime, lost work time, and actual transportation costs. In general, common carrier (bus, train or plane) is preferred mode of transportation. b. The City will only pay or reimburse employees for the cost of coach class flights. c. Employees shall be responsible for canceling any airline or hotel reservations they will not use. Any charge for an unused reservation shall be considered the employee’s personal expense, unless failure to cancel the reservation was due to circumstances beyond the employee’s control. C.7.a Packet Pg. 148 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 6 of 110 d. If available, a City-owned vehicle should be used for travel unless the employee receives a mileage allowance. e. If a City vehicle is not available, or if there is another reason why the employee should drive his/her personal automobile, the City will reimburse the employee with either the cost of the most appropriate means of transportation, or the actual mileage involved in the travel, whichever is the lesser of the two. f. The reimbursed mileage rate for use of a private vehicle for City travel will be at the current Standard Federal Mileage Rate set by the IRS. g. Mileage reimbursement for a private vehicle being used for City travel must consider the employee’s normal commute to work and whether the employee receives a monthly vehicle allowance. If the employee does not receive a vehicle allowance, the employee is entitled to reimbursement for all business miles driven, with the following exceptions: 1) If travel begins and ends at work, the entire business mileage will be reimbursed. 2) If travel begins at work and ends at home (or vice versa), and if the total business mileage driven is less than the total mileage that would have been driven if travel began and ended at work, the total mileage can be claimed. (Example: John Doe lives in Banning and is attending a morning conference in Los Angeles. The trip from Banning to Los Angeles is 75 miles, but is only 60 miles from Grand Terrace to Los Angeles. Since his normal commute would bring him to Grand Terrace and 10 miles closer, in this case John would be reimbursed 120 miles, the round-trip distance from City Hall). 3) If travel begins at home and ends at home, and if the total business mileage driven is less than the total mileage that would have been driven if travel began and ended at work, the total mileage can be claimed. (Example: Jane Doe lives in Banning and is attending a conference in Palm Springs. The round-trip mileage from her house is 120 miles, but would have been 130 miles had she started at and returned to the Grand Terrace City Hall. In this case Jane would be reimbursed for the 120-mile round trip). 4) Under no circumstances shall reimbursement be given to the total business mileage claimed that exceeds the total mileage had the travel begun and ended at work. C.7.a Packet Pg. 149 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 7 of 110 h. If an employee already receives a monthly vehicle allowance, a total of 50 miles must be deducted for each one-way travel to or from the authorized City business travel destination. The mileage exceeding a 50-mile radius is subject to reimbursement, however, the first 50 miles each way is considered applicable to the employee’s vehicle allowance. The above four rules shall also apply. i. In order to drive a privately-owned vehicle on City business, the employee must: 1) Possess a valid California driver’s license. 2) Carry liability insurance, as required by the State of California 3) Realize that any damage to the employee’s personal vehicle and/or service or repair occurring on the trip will be the employee’s responsibility, as insurance costs are factored in the IRS per mile cost reimbursement. j. If local ground transportation is needed during the trip, the use of public transit such as airport shuttles, buses, streetcars, and subways is appropriate. k. Ground transportation must be efficient and cost effective. Use of taxis, hotel courtesy buses and local shuttles are allowed when other public transit or common carriers are not reasonably available. l. Requests for advances of ground transportation costs (including tips) should be substantiated whenever possible. If the cost cannot be substantiated, advances will be based on a fair and reasonable estimate of expenses. m. Ground transportation receipts are required for reimbursement. Employee requests for out-of-pocket reimbursement of ground transportation costs without receipts are subject to review and approval by the Finance Director. n. The use of a rental car is authorized in cases where it is economical or more feasible relative to using ground transportation. o. If a car rental is required, the employee may request reimbursement for out-of-pocket costs including fuel, upon return from business travel. Receipts are required. The optional car rental agency-provided insurance is not a reimbursable cost. Since employees are normally insured by their own automobile insurance carrier for use of a rental vehicle, employees may opt for this coverage at their own expense. p. The City will reimburse all reasonable business travel expenses, including bridge tolls and parking fees incurred as a result of an C.7.a Packet Pg. 150 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 8 of 110 employee’s authorized use of a private vehicle or City vehicle while traveling on City business. Receipts are required. q. Without receipts, any employee request for out-of-pocket reimbursement of costs incurred as a result of an employee’s authorized use of a private vehicle or City vehicle while traveling on City business is subject to review and approval by the Finance Director and additional approval by the City Manager. 8. Compensation for Travel Time (Non-Exempt Employees) a. When travel time exceeds the normal workday or workweek, the City’s rules for overtime apply to those employees eligible for overtime. b. In determining overtime compensation, normal commute time should be deducted from total travel time. c. Normal unpaid meal periods are not considered work time while traveling. d. Overtime eligibility applies equally to drivers and passengers, and should be granted whether travel occurs during normal workdays or on weekends or evenings. 9. Lodging a. Lodging is allowed for attendance at conferences, seminars or meetings that are in excess of 50 miles or one hour of travel time, one-way, from the employee’s home. The City Manager may approve exceptions to the 50-mile/one hour minimum if he/she considers the request to be reasonable and practical, especially considering the destination, the difficulty of the commute, and the starting time of the conference. b. Reasonable lodging expenses will be paid at actual cost including taxes and parking, for as many nights as necessary. c. The lodging accommodations should be economical and practical. In general, the employee should select the most reasonably priced accommodations available, but consistent with the purpose and goals of the trip. d. When choosing a hotel for a conference, it is preferable to stay at the hotel where the conference is being held even though it may be slightly more expensive than others in the area, in order to reduce transportation expenses such as cab fares. e. Other non-business related room charges, including movies or refreshments are not reimbursable. C.7.a Packet Pg. 151 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 9 of 110 f. When making lodging reservations, be sure to ask if a “government rate” is available. Some cities exempt travelers on government business from their local transient occupancy tax (TOT). This can represent as much as a 12%-15% savings on lodging costs depending on the TOT rate. Check with the hotel for this exemption and form. g. Since there is seldom a difference in the room rate for double occupancy, it is permissible for an employee to share a room with a spouse or guest at no additional cost to the City. However, if double occupancy of a room by a non-City employee results in an increased room rate, the difference will be the employee’s personal expense. Furthermore, incurring a non-business related expense using advanced City funds is prohibited. 10. Incidental Expenses a. Incidental expenses include but are not limited to tips for persons who provide services, such as waiters, maids, porters, and baggage handlers. b. Incidental expenses incurred while on an overnight business trip are covered by per diem. To receive reimbursement on incidental expenses incurred on a day business trip, receipts should be submitted whenever possible. If the employee is unable to obtain a receipt, the costs should be documented on the Travel Form as a reimbursement request, along with an explanation of why a receipt was not available. Reimbursement of such unsupported expenses will require approval by the Finance Director and City Manager. c. Business-related expenses such as telegrams and telephone calls, copying and faxing, computer accessories, tapes and other training materials purchased at a conference are reimbursable with receipts, and become property of the City. Whenever possible, employees should anticipate the need for supplies and should take whatever they need with them instead of purchasing these supplies at their destination, where the cost may be significantly more than what the City would normally pay. d. Tips are generally an allowable and reimbursable cost of business travel, but they must be reasonable. 1) For business trips not involving per diem, they should never exceed 15% of the cost of the meal. 2) For ground transportation, they should not exceed 10% of the fare. 11. Non-Reimbursable Expenses C.7.a Packet Pg. 152 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 10 of 110 Personal entertainment costs are not reimbursable. These include headphones or alcoholic beverages purchased on airplanes, video rentals and refreshment bars in hotel rooms, spas and gyms, laundry or dry cleaning and other items of a personal nature. B. Travel Expense Report 1. When returning from a trip, a final accounting of all expenses related to the trip must be approved by the Supervisor and Department Head, and then submitted to the Finance Department within 15 working days. Department Head Travel Expense Reports must be approved by the City Manager. City Manager Travel Expense Reports must be approved by the Finance Director and Mayor. 2. A Travel Expense Report is required in all cases – there are no exceptions. This is mandatory whether or not the advance received is equal to the expenses incurred, whether the employee is eligible for additional reimbursement, or whether money is owed to the City. 3. If the employee owes the City for the unused balance of a cash advance (other than per diem), he/she should pay the amount due to the Finance Department cashier and attach the receipt to his Travel Expense Report. The amount returned to the City must be applied as a credit to the expense account originally used for the cash advance. 4. Supervisors and Department Heads approving Travel Expense Reports are responsible for ensuring that: a. All expenses are reasonable, necessary and consistent with this policy; b. Any required receipts are attached; c. The final disposition is correct (balance due employee, or balance due City); d. Any amounts due to the City are fully reimbursed; and e. Final accounting of all expenses related to the trip is submitted to the Finance Department within 15 workdays following the employee’s completed travel. 5. If the City owes the employee money, the employee may request reimbursement by forwarding the Travel Expense Report to the Finance Department along with a Request for Payment. If the amount requested is $100 or less, a Petty Cash Request may be submitted for reimbursement. Requests for reimbursement will be processed on the next available Accounts Payable check run, if submitted by the normal Accounts Payable deadline, but no later than 10 workdays following receipt. Requests for reimbursement by petty cash will be reimbursed per the City’s Petty Cash & Change Boxes Policy (Fiscal Policy No. 1.02). C.7.a Packet Pg. 153 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 11 of 110 6. If the employee owes the City money, he/she should attach a check to the Travel Expense Report. C.7.a Packet Pg. 154 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) ORIGINAL C.7.a Packet Pg. 155 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) EXHIBIT A - City of Grand Terrace - Travel Authorization & Expense Reporting Form Instructions: Prior to travel or training, complete Part I to have anticipated expenses approved. Submit a copy of this approved form with each payment expense submitted. Complete Part II to confirm total travel expenses including any approved adjustments. If paid with a procurement card, submit a copy of this approved form with the appropriate bank statement, otherwise submit to Accounts Payable within 15 workdays of the travel end date. Travel Authorization I Pre-Trip Employee Signature Pre-Trip Supervisor Signature (where applicable)I Name: Purpose of Trip: Job Title: Destination: Dates: Expense Type Estimated $ Actual $ Registration: Lodging: Mileage: Airfare: Total: Per Diem: Total Travel Days (Enter# of Days) >» X Supervisor's Approval X Date City Manager Approval (as required) X X Department Head Approval X Date REVISED C.7.a Packet Pg. 156 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.04 Subject: Grants Effective Date: 5/13/14 Page 1 of 5 PURPOSE: To clarify, standardize and identify the benefits of seeking potential grants and the process to properly manage and maximize the use of grants. GOALS: To seek grant funding that will enhance, support and provide additional services to the City, which will clearly provide a positive benefit to the community or needed infrastructure improvements that may not be provided at adequate levels due to limited City revenues. POLICY: To perform cost/benefit analysis of a grant request and to identify potential financial impacts relating to costs associated with the hiring of new personnel, equipment and technology and other related costs during the term of grant and after expiration of grant. I. Pre-Application Process – Review of Grant/Grant Proposal Information Form A. Upon notification of a potential grant, the City Manager shall assign it to the applicable department. A department that receives direct notification of a grant opportunity may also initiate the grant application process after notifying and receiving concurrence from the City Manager’s office. The department shall designate a Grant Project Manager to identify and review potential grant sources, obtain grant application materials and related regulations. This process is not applicable for ongoing direct allocation grants such as the Community Development Block Grant (CDBG) program. Sections II, IV and V of the Grant Policy shall not apply to potential grants of less than $25,000 which the Grant Project Manager determines have matching or administrative requirements which can be handled within the approved City budget and current staffing resources. 1. Federal Grants: identify all requirements needed prior to and after approval of grant such as public hearings, notification of public clearinghouse, advisory boards, lobbying efforts, monitoring/audits and type of reporting requirements. Address issues dealing with supplanting of local funds which restrict funding or existing staff/technology and limit funding to only new hires and new technology. 2. State Grants: identify state requirements including mandatory quarterly/annual reports and monitoring. 3. The annual CDBG entitlement process is not addressed in this policy because the procedures and regulations are outlined under 24 CFR Part 570. Individual projects funded under CDBG shall be applicable to certain provisions of this policy relating to Federal grants. II. Completion of Grant Proposal Information Form & Cost/Benefit Worksheet A. Based on information obtained, the Grant Project Manager shall complete the Grant Proposal Information Form (Exhibit A) and Grant Cost/Benefit Worksheet (Exhibit B). The grant funding identified in Exhibit B should be based on a five- C.7.a Packet Pg. 157 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.04 Subject: Grants Effective Date: 5/13/14 Page 2 of 5 year budget projection if applicable. Exhibits A and B shall be reviewed and approved by the Department Head, Finance Director, and City Manager (or designee) as part of the grant application process. 1. Identify amount or percent of grant funds covering cost of personnel, consultant services, design, construction, equipment and technology. 2. Identify source and amount of matching funds needed to be budgeted for the term of the grant. 3. The Finance Director shall determine if adequate funds are available to meet required local match plus any additional costs exceeding the match. 4. The City Manager and the Finance Director, after consultation with Human Resources, shall determine whether grants that have supplanting conditions relating to the hiring of new personnel and technology shall be considered for funding. a. Due to the financial impacts of short-term grants that fund personnel for a limited time, special review must be undertaken to analyze the cost/benefit of the grant. b. If the cost/benefit analysis clearly demonstrates a strong community benefit, the City Manager may: (1) limit the hiring of new personnel to the term of the grant; or (2) authorize continued funding of the new personnel costs after termination of the grant. III. Complete Grant Application A. The grant application shall be completed by the Grant Project Manager under the direction of the applicable Department Head. The Grant Project Manager shall write and complete the grant proposal. The Grant Project Manager shall also confirm that the grant proposal meets eligibility requirements and is consistent with the grant guidelines; that goals and objectives are clearly identified; and that the percent and amount of costs funded by the grant and required matching funds are clearly identified. 1. Ensure the complete computation of personnel and other applicable costs such as consultant services, estimated design and construction, equipment and technology, etc. are included in the grant document. Obtain the computation of component grant costs as follows: a. Personnel costs: Finance Department b. Computer equipment and technology-related costs: Information Services c. Design and construction costs: Public Works Department d. Other miscellaneous costs: Finance Department C.7.a Packet Pg. 158 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.04 Subject: Grants Effective Date: 5/13/14 Page 3 of 5 2. Verify the source and amount of the required local match for term of grant. Ensure that all direct costs or in-kind services are identified and included in the grant as eligible expenses or City matching funds to the extent possible. IV. City Council Review A. A City Council staff report describing and justifying the benefits of the grant application request shall be presented to the Council prior to grant submittal. In the event of agenda scheduling conflicts due to untimely notification by funding agency of grant deadline, the City Council shall be advised by memo (or other communication such as the City Manager’s Report) of the grant submittal. A staff report shall be submitted after grant award notification requesting acceptance of grant award. B. Complete resolution for City Council approval if required by grant. V. Finance Director/City Manager Review A. The completed grant application shall be reviewed by the Finance Director and City Manager (or designee) prior to submittal: 1. Review completed grant proposal and staff report to evaluate cost/benefit of receiving administering grant, assure consistency with program goals and identification of personnel, equipment, technology and other related costs. 2. Verify all costs associated with the grant are identified and fully accounted for throughout the term of the grant. 3. The City Manager (or designee) shall have the exclusive authority to execute grant agreements, to sign financial reports and grant applications. VI. Grant Award Notification A. Upon notification of award the Grant Project Manager shall take the following steps: 1. Prepare a staff report to City Council for acceptance of grant award, if the City Council had not previously approved the grant application. The staff report must include a Budget Appropriation Adjustment Form to record grant revenues and expenditures, as further defined in Fiscal Policy No. 3.03 (Budget Appropriation Adjustments). Coordinate with Finance to establish/set up fund accounts for grant, if necessary. C.7.a Packet Pg. 159 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.04 Subject: Grants Effective Date: 5/13/14 Page 4 of 5 2. Following City Council’s acceptance, prepare a News Release for review and approval of the City Manager’s office. 3. Schedule a meeting to discuss the applicable financial, project management and reporting requirements of new grant. a. Review personnel, equipment and technology data to determine if needs and costs are still applicable or need updating. b. Set up separate meeting for design and construction projects to discuss project issues and grant requirements related to Federal funding such as preparation of construction-related documents procurement, Davis Bacon compliance standards, etc., and hold a pre-construction conference and take minutes of meeting. c. Initiate all necessary procurement activities, distribute grant documents to those departments involved in the project, hire grant-funded personnel and purchase equipment and technology. d. Monitor projects for compliance with grant requirements, assure timely submittal of required quarterly, semi-annual or annual progress reports. The Grant Project Manager shall coordinate with assigned department to specify the responsibilities of the grant- funded personnel that may involve collection of data for preparation of reporting requirements. 4. Provide technical and administrative assistance to the grantee department if needed. 5. Ensure that all grant-funded contracts include the required grant provisions and route to applicable staff. 6. Prepare appropriate purchase requisitions and progress payment requests. The Grant Project Manager shall prepare requests for grant payments and/or reimbursements and obtain appropriate department signatures and shall review for eligibility of purchase under conditions of the grant. 7. Coordinate with Finance staff the submittal of copies of grant documentation associated with grant-funded purchase requisitions. The Grant Project Manager shall identify personnel, equipment and technology and reference with specific grant name or number on documentation for purchase requisition. 8. Prepare electronic transfer draw-downs for Federally-funded projects or other procedure identified by funding agency. 9. Review/approve change order requests for construction projects. C.7.a Packet Pg. 160 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.04 Subject: Grants Effective Date: 5/13/14 Page 5 of 5 VII. Grant Expiration/Project Completion A. The Grant Project Manager and assigned department shall notify other departments of project completion. 1. Review departmental grant file for completeness of all required documentation and mandatory reports. Complete final assessment report if required. 2. Retain records for the required time period. 3. Participate in grant audit or monitoring. 4. Prepare News Release regarding completion of project if appropriate. 5. Schedule and attend grant close-out meetings (construction projects). C.7.a Packet Pg. 161 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) EXHIBIT A GRANT PROPOSAL INFORMATIONAL FORM Name of Grant: Funding Source: Federal State Other (Describe) Responsible Department: Amount of Grant: $ Local Match Required $ Please provide brief answers for the following questions. 1. Is the grant consistent with the policy and goals identified in the Grant Policy (Fiscal Policy No. 3.04)? 2. Provide brief description of grant. 3. Describe and identity costs for the personnel, equipment, technology, construction, design and other items required or needed under this grant (refer to Attachment B). a. Personnel b. Equipment/Technology c. Design/Engineering d. Construction e. Other C.7.a Packet Pg. 162 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) 4. Identify Grant Project Manager and other departments/staff who will be responsible for implementing the grant and providing project oversight. 5. List procedural requirements for grant such as public hearing, advisory board setup, Davis Bacon, environmental reviews, etc. and describe any potentially costly monitoring or compliance issues. 6. Identify required reports (quarterly, semi-annual, annual) to be completed after grant award and what department/staff would be assigned reporting requirements. 7. Describe the cost/benefit aspects of the grant. 8. Complete Attachment B – Grant Cost/Benefit Worksheet C.7.a Packet Pg. 163 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) EXHIBIT B GRANT COST/BENEFIT WORKSHEET Expenditure Category Grant Budget Grant Budget by Fiscal Year Percent of Grant Local Match Budget Local Match by Fiscal Year Percent of Local Match Revenue Source Local Match (Description & Account Code) Total Cost (Grant plus Local Match) Total Cost by Fiscal Year Personnel/Title FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Subtotal Equipment/Technology FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Subtotal Design/Engineering FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Subtotal Construction FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Subtotal Other FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Subtotal Grand Total FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Total C.7.a Packet Pg. 164 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - City of Grand Terrace Fiscal Policy Policy No. 3.05 Subject: Donations Effective Date: 5/13/14 Page 1 of 4 PURPOSE: To establish policy and procedures for the solicitation and/or acceptance of donations made to or for the City. A uniform set of procedures shall be followed in the acceptance of all donations. Proper approval shall be obtained prior to acceptance. All cash and capital goods donated to the City shall be accounted for in accordance with the procedures set forth within this policy. DEFINITIONS: Donor: An individual, organization or business entity that is offering a monetary contribution, personal property or real property to the City as a gift. Gifts: For purposes of this policy, the terms gift and donation shall be synonymous. Gifts may be a monetary contribution or a personal and real property item which the City has accepted, and for which the donor has not received anything of value in return from the City other than a tax benefit. Included within the scope of this policy are donations whereby a private business sponsors or co-sponsors an event on behalf of or in partnership with the City. POLICY: I. Legal Basis A. (Ref. Government Code, Section 37354, Gifts and Bequests.) The City Council, or its designated representative, may accept or reject any gift made to or by the City for any public purpose. The City may utilize the gift as prescribed by the donor or, providing use of the gift or the income from it is not restricted, the gift may be used for any purpose that furthers City goals and objectives as stated at the time of acceptance. B. (Ref. California Code of Regulations, Section 18944.2) A gift will be deemed a gift to a public agency, and not a gift to a public official, if all of the following requirements are met: (a) the agency receives and controls the payment; (b) the payment is used for official agency business; (c) the agency determines the specific official or officials who shall use the payment; and (d) the agency memorializes the payment in a written public record and the filing is done within 30 days of receipt of the payment by the agency. II. Donations to the City A. Responsibility: Donations with an estimated value of $5,000 or less may be authorized by the City Manager. Donations with an estimated value exceeding $5,000 must be approved by City Council. The Finance Director shall be responsible for managing all donations of cash and for the accounting and inventory of all donated items. C.7.a Packet Pg. 165 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.05 Subject: Donations Effective Date: 5/13/14 Page 2 of 4 B. Solicitation of Gifts: The City Manager may authorize City staff to approach companies or organizations to request donation of goods, services, or funds to facilitate the achievement of identified City goals. Such solicitation shall be made only with the approval of the City Manager. C. Unsolicited Gifts: Unsolicited donations shall be accepted only if they have a valid use to the City. 1. Donors who wish to make a gift to the City shall be referred to the appropriate department head. Those gifts not specific to a given department shall be referred to the Finance Director. 2. In the event that the offered item does not have any practical use for the department to which it has been presented, the donor shall be referred to the Finance Director. If the gift may be of potential value, notice will be circulated to each Department Head to determine if it can be utilized elsewhere. The Donor will be notified within two weeks whether the City will accept the offered gift. If the item clearly has no use to the City or would be more effectively used elsewhere, the donor will be informed immediately and referred to an appropriate agency by the Finance Director. 4. Proof of Ownership: If there is a material question as to the legal ownership of the offered item, proof of ownership shall be requested. Such proof of ownership may include but not be limited to copy of title certificate, receipt for purchase, or signed affidavit verifying ownership. 5. Donors shall be encouraged to place minimal restrictions on the use of a donated item, allowing the City as much flexibility as possible in determining its use and liquidation. D. Conditions for accepting/rejecting donations: Staff shall work with the donor to assure that restrictions are reasonable and do not leave the donor with unrealistic expectations regarding use or life of the donation (e.g., if a tree is donated it could die or be moved). The following are criteria which may be applied in determining if a donation is appropriate for acceptance: 1. Would use of the item be consistent with existing City policy? 2. Would the maintenance or operating costs associated with the gift be excessive? 3. Do proposed or imposed conditions or restrictions upon use of the item make it impractical to accept? 4. Do proposed or imposed conditions or restrictions on disposition of the item make it impractical to accept? C.7.a Packet Pg. 166 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.05 Subject: Donations Effective Date: 5/13/14 Page 3 of 4 5. Is required accounting of acceptance or use of the item excessively burdensome? 6. Would the item require extensive repair or maintenance, and if so, are City means readily available to do so? 7. Does use of the item require the purchase of additional material or equipment to serve the purpose of the gift? 8. Would acceptance of the item present a conflict of interest for the City or any of its employees? Regardless of the value of the donation, if the donor is a contractor, potential contractor or there is reason to believe there may be a conflict of interest, then the offer shall be referred to the City Manager who will determine if the gift will be accepted, rejected or submitted to the City Council for approval. III. Procedures A. Non-monetary gifts valued at $5,000 or less: Any single donation whose total value, as determined by the donor, is $5,000 or less. 1. A Donation Receipt Form (Exhibit A) will be completed when donations are received, with the form completed by City staff. 2. The City will not place any value on the gift for the donor. The donor shall provide proof of current market value. If real property is donated, a current appraisal report will be required. 3. The City Manager will promptly acknowledge each gift by letter, thanking the donor for the gift. 4. The Finance Director shall be notified of the acceptance of any capital asset. Finance shall make the necessary entries on the respective accounts and property records to ensure that the property is recorded to the account of the proper City program. This reporting must take place no later than 30 days after the receipt of the donated item. B. Non-monetary gifts valued at more than $5,000: 1. Any gift valued at more than $5,000, as determined by the donor, cannot be accepted without City Council approval. Subsequent to Council's acceptance, procedures for acceptance of gifts in excess of $5,000 shall be the same as those in Section A above. C. Cash Gifts: 1. Depositing Cash Gifts: All cash gifts shall be deposited immediately with the Finance Department in accordance with the City's Cash Handling & Control Policy (Fiscal Policy No. 1.01) and shall be accompanied by a C.7.a Packet Pg. 167 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.05 Subject: Donations Effective Date: 5/13/14 Page 4 of 4 copy of the Donation Receipt. Cash donations shall be deposited in the appropriate restricted or unrestricted revenue account within the appropriate fund. 2. Restricted Cash Donations: a. Donation Receipt: Restricted cash donations must be supported in Finance Department files by the Donation Receipt signed by the donor, which identifies the name of the donor, the amount and date of the donation, and the nature of the restriction. b. Deposit of Restricted Cash Donations: Donations shall be deposited in a revenue account, which will be managed by the Finance Director. This fund shall be utilized by all depositing departments. Upon receipt of donated cash, the department shall submit a copy of the donation receipt form to the Finance Director at which time an account number will be assigned to the donation. c. Council Authorization: A request for authorization must be sent to the City Council via a staff report and approved by the City Council before a restricted cash donation is spent for its intended use. The staff report must state the name of the donor, the amount of the donation, the date the donation was received and the nature of the restriction. d. Procedures for Expending Donated Cash: The donation may be liquidated by the expending department when an approved purchase is made. Any over-expenditures will be charged to the department's operating budget. Funds shall remain in this account until they are entirely expended in accordance with the terms of the gift. If the funds are not expended as intended, they must be returned to the donor, or the donor must provide written authorization to expend the gift differently than the original purpose. d. Monitoring of Cash Donations: The City Council will receive periodic reports, not less than annually, from the Finance Director accounting for receipts and expenditures of donated funds. 3. Unrestricted Cash Donations: Unrestricted cash donations shall be deposited in an unrestricted revenue account in the General Fund. D. Reporting of Donations: Within 30 days of the end of each quarter, the Finance Director shall submit a report to City Council that summarizes all donations received by each department during the prior fiscal year, with an estimate of the monetary value of the donations. C.7.a Packet Pg. 168 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) EXHIBIT A DONATION RECEIPT FORM Date Donor Telephone ( ) Address City State Zip DONATION DESCRIPTION: CASH CHECK COMMODITY (amount) (amount) Description (be specific) _____UNRESTRICTED _____RESTRICTED (identify restrictions) Total estimated value (estimated by Donor) Received by: Date: Signature of City Employee/Department Donor: Date: Signature -------------------------------------------------------------------------------------------------------------------------------------------- The donation was classified and handled in the following manner: Item was issued a City I.D. number and is located at Item has short life span. Not classed as a fixed asset. Unrestricted cash or check deposited in General Fund, account number Restricted cash or check placed in General Fund, account number ______________________ for use in _____ Other (explain) Finance Director Date City Manager Date C.7.a Packet Pg. 169 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.06 Subject: Reserves Revision Date: 9/27/16 Page 1 of 4 I. PURPOSE AND SCOPE To define the policy for establishing and maintaining cash reserves needed for prudent financial management of the City. II. POLICY A. Introduction The City will maintain cash balances to preserve the City’s credit worthiness and to adequately provide for: 1. Economic uncertainties, local disasters or catastrophic events, and other financial hardships or downturns in the local or national economy. 2. Contingencies for unforeseen operating needs. 3. Future debt service requirements. 4. Fixed asset replacements. 5. Cash flow requirements. 6. Legal requirements. B. Budgetary Reserves 1. A contingency account will be budgeted each fiscal year in the Non- Departmental cost center to provide for unanticipated expenditures of a nonrecurring nature. Authorization to expend funds from this account will require approval of the City Manager. 2. A General Fund Contingency Reserve account will be established and maintained at the level recommended by the Government Finance Officers Association of the United States & Canada (GFOA), which is a minimum of two months of regular General Fund operating revenues or expenditures (whichever is considered most predictable), to serve as a buffer against unexpected local disasters or catastrophic events, and other financial hardships or downturns in the local or national economy. The City will use General Fund operating revenues as the basis for establishing the two- month reserve target. C. Fund Balance Reserves The City shall report fund balances in accordance with the Governmental Accounting Standards Board (GASB) Statement 54, which requires fund balance to be classified in one of five categories as follows: C.7.a Packet Pg. 170 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.06 Subject: Reserves Revision Date: 9/27/16 Page 2 of 4 • Non-spendable fund balance includes amounts that are not in a spendable form (inventory, for example) or are required to be maintained intact (the principal of an endowment fund, for example). • Restricted fund balance includes amounts constrained to specific purposes by their providers (such as grant providers, bondholders, and higher levels of government) through constitutional provisions or enabling legislation. • Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action of the City Council, the government's highest level of decision-making authority. These funds include: ▪ Fixed Asset Fund - funds may only be used for equipment replacement of for the purchase of new equipment; ▪ Community Benefits Fund - funds may only be used for City Council approved grants to benefit the community; ▪ Public Safety Services Fund - funds may only be used for additional public safety services as determined by the City Manager and approved by City Council.  Commitments may be changed or lifted only by City Council, the government taking the same formal action that imposed the constraint originally. • Assigned fund balance comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. • Unassigned fund balance is the residual classification for the general fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. If another governmental fund has a fund balance deficit, then it will be reported as a negative amount in the unassigned classification in that fund. Positive unassigned amounts will be reported only in the general fund. C.7.a Packet Pg. 171 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.06 Subject: Reserves Revision Date: 9/27/16 Page 3 of 4 General Fund Contingency The City shall maintain a committed General Fund contingency reserve equal to two months of operating revenues. If the reserve level falls below the minimum level, the City will seek to replenish fund balance within a reasonable timeframe. The reserves will be used to provide for temporary financing of unanticipated extraordinary needs of an emergency nature, such as economic uncertainties or a local disaster. Intended to act as a short-term solution to fiscal needs, the contingency reserve will be drawn down as the funding source of last resort. Authorization and Action to Commit Fund Balance The City Council, as the government's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however the amount can be determined subsequently. Authorization and Action to Assign Fund Balance The City Council may assign fund balance to a specific purpose in relation to this fund balance policy. By resolution, the Council has also authorized the City Manager and/or Finance Director to assign fund balance. Assignments by the City Manager or Finance Director do not require formal action by the City Council; however, each assignment must be approved by either of the authorized officials before the item can be presented in the financial statements. D. Use of and Replenishment of General Fund Contingency Reserve 1. The General Fund Contingency Reserve is intended to act as a buffer to protect service levels during difficult economic times or as a result of catastrophic events that require significant unanticipated expenditures. 2. During such times, or as a result of such events, the General Fund Contingency Reserve may decline below the target level (two months of operating revenues) with City Council authorization. Once the difficult fiscal times pass, the General Fund Contingency Reserve will be replenished to its target level as soon as funding permits, as determined by the City Council through the annual budget process. C.7.a Packet Pg. 172 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.06 Subject: Reserves Revision Date: 9/27/16 Page 4 of 4 3. Appropriate sources for replenishment of the General Fund Contingency Reserve include one-time revenues and other sources not necessary to support ongoing services. E. Policy Versus Appropriation of Reserves This policy establishes target reserve levels for the prudent financial management of the City. However, specific appropriation of funds into the various reserve accounts will be subject to the annual budget adoption process or other City Council budgetary action. C.7.a Packet Pg. 173 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.07 Subject: Unclaimed Money Approval Date: 1/14/14 10/11/2022 Page 1 of 3 I. PURPOSE AND SCOPE To establish a policy and related procedures for escheatment and accounting of unclaimed money in accordance with California Government Code Sections 50050 through 50056. II. DEFINITIONS A. Escheatment - The reversion of property to a government entity in the absence of legal claimants or heirs. B. Unclaimed Money - Money which is not the property of the City but that remains in the City’s treasury, including funds related to uncashed checks. III. POLICY A. Unclaimed Money that remains unclaimed for at least three (3) years will become the property of the City if after proper notification the money remains unclaimed. Unclaimed Money becoming the property of the City, which is in a special fund, will be transferred to the City’s General Fund, unless otherwise restricted. B. Unclaimed Money items less than fifteen dollars ($15), or any amount if the owner is unknown, which remain unclaimed for one (1) year will become the property of the City without notification and will be transferred to the City’s General Fund, unless otherwise restricted. C. All escheated money originating from the Successor Agency to the Community Redevelopment Agency of the City of Grand Terrace (Agency) will revert to the appropriate fund. IV. AUTHORITY This policy is established in California Government Code Sections 50050 through 50056. V. PROCEDURES A. Individual checks/deposits equal to or greater than fifteen dollars ($15): 1. On July 1st, the Finance Department will compile a list of outstanding checks and/or deposits which are equal to or greater than fifteen dollars ($15) and at least three years old; such checks will be deemed stale dated. The Finance Department will proceed as follows: a. A stop payment shall be placed with the bank on all stale-dated checks. b. Accounts Payable will void stale-dated checks. c. Accounting will post a Journal Entry to record the stale-dated check liability. C.7.a Packet Pg. 174 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.07 Subject: Unclaimed Money Approval Date: 1/14/14 10/11/2022 Page 2 of 3 2. The Finance Department will then publish a notice (Exhibit A) identifying all such money in a local newspaper of general circulation once a week for two successive weeks. The notice shall state the payee name, fund in which it is held, the amount of money, and that the money will become City property forty-five (45) days after the first publication of the notice. Proof of publication will be retained in the Finance Department. B. Claims filed by Party of Interest: 1. Upon or prior to publication and before the date the Unclaimed Money becomes City property, a party of interest may submit an Unclaimed Money Claim Form (Exhibit B) with the Finance Department to collect money. The Finance Department will require proof of identification from the claimant. Once a decision is rendered by the Finance Department, notification will be made to the claimant by letter. 2. Upon acceptance, the Finance Department will proceed as follows: a. Accounts Payable will reissue check to the owner, their heir, beneficiary, or duly appointed representative, following accounts payable policies and procedures: b. The Finance Department will remove the check from the list of Unclaimed Money to be escheated. 3. If denied, the claimant may file a verified complaint seeking to recover all, or a designated part, of the money in a court of competent jurisdiction within San Bernardino County, and must serve a copy of the complaint and the summons issues thereon upon the Finance Department. The copy of the complaint and summons shall be served within 30 days of receiving notice that the claim was denied. The Finance Department shall withhold the release of the portion of Unclaimed Money for which a court action has been filed until a decision is rendered by the court. 4. If the court renders a decision in favor of the claimant, the Finance Department will follow the acceptance procedures identified in this policy to issue the check. 5. If the court renders a decision in favor of the City, the Finance Department will proceed as follows: a. Accounting will reverse the Unclaimed Money liability and record the revenue. b. Accounting will record the transfer of escheated special fund cash to the General Fund, unless otherwise restricted. C.7.a Packet Pg. 175 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) City of Grand Terrace Fiscal Policy Policy No. 3.07 Subject: Unclaimed Money Approval Date: 1/14/14 10/11/2022 Page 3 of 3 c. Any escheated money related to Agency/Trust funds will revert to the appropriate originating fund and not the General Fund. i. Property Escheats to City: 1. On the forty-fifth day after the first publication of the notice, those checks and/or deposits on which no claims were filed escheat to the City. The Finance Department will follow procedures identified in the preceding section. 2. On July 1st, the Finance Department will compile a list of outstanding checks and/or deposits which are less than fifteen dollars ($15), or any amount if the owner is unknown, and have remained unclaimed in the City treasury for a period of one (1) year; such checks will be deemed stale dated. Money identified on the list will escheat to the City and will be transferred to the General Fund, unless otherwise restricted. The Finance Department will proceed as follows: a. A stop payment shall be placed with the bank on all stale-dated checks. b. Accounts Payable will void stale-dated checks. c. Accounting will reclassify the voided check as a credit to Revenue. d. Accounting will record the transfer of escheated special fund cash to the General Fund. e. Any escheated money related Agency/Trust funds will revert to the appropriate originating fund and not the General Fund. C.7.a Packet Pg. 176 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) EXHIBIT A CITY OF GRAND TERRACE UNCLAIMED MONEY SAMPLE PUBLIC NOTICE NOTICE IS HEREBY GIVEN pursuant to Government Code Sections 50050 through 50056 that the following money, which is not the property of the City of Grand Terrace, has remained in the City treasury for more than three (3) years and will become City property if not claimed by August 14, 20XX. The owner/depositor, their heir, beneficiary or duly appointed representative may file a claim requesting release of money with the City of Grand Terrace’s Finance Department, which must include the claimant’s name, address, telephone number, Employer Identification Number or Social Security Number, amount of claim, and the grounds on which the claim is founded before August 14, 20XX. If the claim is denied by the City, the claimant may file a verified complaint seeking to recover all, or a designated part, of the money in a court of competent jurisdiction within San Bernardino County, and must serve a copy of the complaint and the summons issues thereon upon the Finance Department within thirty (30) days of receiving notice that the claim was denied. The Unclaimed Money - Claim Form is available at the City of Grand Terrace, Finance Department, 22795 Barton Road, Grand Terrace, CA. FUND PAYEE NAME AMOUNT C.7.a Packet Pg. 177 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) EXHIBIT B CITY OF GRAND TERRACE UNCLAIMED MONEY CLAIM FORM Claimant’s Name Taxpayer Identification No. or Social Security No. Address City/State/Zip Code ( ) Telephone Number Pursuant to California Government Code Section 50052, I am filing a claim for previously unclaimed money in the amount of $ , which was published in the on / / (MM/DD/YY). The grounds on which I am filing this claim are: Please attach copies of all support documentation to this claim. Do not attach originals, as the City will retain all documents. I hereby certify under penalty and perjury that the information contained and attached to this claim is true and correct and is being submitted to the City of Grand Terrace to substantiate my claim to money held by the City. I further certify that I have the authority and right to claim and receive payment of money and hereby release the City of Grand Terrace, its directors, employees, representatives, attorneys and agents from all liability and further obligation with respect to this claim. Printed Name of Claimant Signature of Claimant Date Mail Completed Forms to: City of Grand Terrace Finance Department 22795 Barton Road Grand Terrace, CA 92313 CITY USE ONLY Payee Name: Account Code: Check No. Check Date: Check Amount: $ Accepted: Denied: Finance Department Signature: Date: C.7.a Packet Pg. 178 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) 01247.0007/827785.2 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.24.070, 3.24.080, 3.24.090, AND 3.24.120 OF CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE THEREBY CHANGING THE THRESHOLDS FOR PURCHASING PROCEDURES, SALE OF SURPLUS SUPPLIES, MATERIALS AND EQUIPMENT, AND CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000; AND ADDING SECTION 3.24.190 TO CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH ADDS REQUIREMENTS RELATING TO CONFLICTS OF INTEREST AND UNLAWFUL ACTIVITY WHEREAS, California, Government Code Section 54202 every local agency to adopt policies and procedures, including bidding regulations, governing purchases of supplies and equipment by the local agency; and WHEREAS, California Government Code Section 4526 provides that professional services may be awarded on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required; and WHEREAS, on August 22, 1985, the City Council of the City of Grand Terrace adopted Ordinance No. 93 adding Chapter 3.24 (Purchasing of Supplies and Equipment) to Title 3 of the Municipal Code; and WHEREAS, on November 13, 2012, the City Council of Grand Terrace repealed Ordinance No. 93 and Chapter 3.24 of the Municipal Code in their entirety and adopted a new Chapter 3.24 (Purchasing System) to Title 3 of the Municipal Code; and WHEREAS, the City Council of the City of Grand Terrace desires to amend regulations governing purchases in Grand Terrace Municipal Code (“GTMC”) Sections 3.24.070, 3.24.080, 3.24.090, and 3.24.120 in order to change the thresholds for purchasing procedures, sale of surplus supplies, materials and equipment, and the City Manager’s authorization limit to $25,000; and, further adding GTMC Section 3.24.190 relating to conflicts of interest and unlawful activity with respect to City purchases. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY GRAND TERRACE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. RECITALS. The Recitals set forth above are incorporated herein by this reference. SECTION 2. PURCHASES OF SUPPLIES, MATERIALS, EQUIPMENT, OR NON-PROFESSIONAL SERVICES UNDER $25,000. Section 3.24.070 of Chapter 3.24 of Title 3 of the Grand Terrace Municipal Code is hereby retitled and amended in its entirety as follows: C.7.b Packet Pg. 179 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 4 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) 01247.0007/827785.2 “3.24.070 – Purchases Twenty-five Thousand Dollars or less. Purchase of supplies, materials, equipment or services with an estimated value of $25,000 or less may be made and approved by the City Manager in the open market, pursuant to the procedure prescribed in this Section; provided, however, all quotation may be dispensed with in an emergency, or where said goods and/or services can be obtained from only one source. A using department is responsible for insuring there is a sufficient appropriation in the budgetary account against which said purchase is to be charged. A. Using department shall follow the following procedure when making an open market purchase: 1. Purchases that are $25,000 or less shall, whenever possible, be based on at least three (3) informal quotations and shall be awarded to the vendor submitting the lowest responsible quotation. 2. Solicit quotations from prospective vendors by written request, electronic mail or by telephone. 3. Written quotations shall be submitted to the using department, which shall keep a record of all open-market orders and quotes for a period of one year after the submission of quotes or the placing of orders. 4. Where written contracts are entered into for purchases made under this Section, the department head is authorized to execute such contracts on behalf of the City. Such purchases shall be made only by purchase order. A copy of the executed contract shall be maintained on file in the offices of the requesting department. 5. Using departments shall submit standard purchase order requisition forms to the Purchasing Officer when requesting goods and services pursuant to this Section. B. Notwithstanding subsection "A" above, purchases of supplies, materials, equipment or services not exceeding an estimated value of $2,500 may be made over the counter by a department head without requirement for quotations or comparative pricing. Furthermore, such goods and services may be obtained without a purchase order.” SECTION 3. PURCHASES OF SUPPLIES, MATERIALS, EQUIPMENT, OR NON-PROFESSIONAL SERVICES OVER $25,000. Section 3.24.080 of Chapter 3.24 of Title 3 of the Grand Terrace Municipal Code is hereby retitled and amended in its entirety as follows: C.7.b Packet Pg. 180 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 4 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) 01247.0007/827785.2 “3.24.080 - Formal Contract Procedure, Purchases Greater Than Twenty-five Thousand Dollars. “Except as otherwise provided herein, purchases of supplies, materials, equipment or services with a value greater than $25,000 shall be awarded to the lowest responsible bidder, pursuant to the procedure prescribed in this section. Written contracts may be required when in the judgement of the City Manager the public interest is served thereby. A. Notice inviting bids shall include a general description of the articles to be purchased and shall state where bid documents and specifications may be obtained and the time and place for opening bids. 1. Notice Inviting Bids. Notice inviting bids shall be published by the City Clerk at least ten days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the City. 2. Bidders' List. The City shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders' list. B. Bidders' Security. When deemed necessary by the purchasing agent, bidders' security shall be required. Bidders shall be entitled to return of bid security upon execution of the contract or upon the readvertisement for bids; provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the City is responsible for the delay. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the bidder first awarded the contract shall forfeit only the portion of his security, which is equal to the difference between his bid and the bid of the next lowest responsible bidder. If the next lowest bidder is awarded the contract and he fails or refuses to execute the contract, he shall forfeit his entire bid security. C. Bid Opening Procedure. Sealed bids shall be submitted to the City Clerk, and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening. D. Rejection of Bids. At its discretion, the City Council may reject any and all bids presented, and re-advertise for bids. E. Award of Contracts. Contracts shall be awarded by the City C.7.b Packet Pg. 181 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 4 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) 01247.0007/827785.2 Council to the lowest responsible bidder except as otherwise provided herein. A master copy of the contract is to be on file in the City Clerk's Department upon execution of the contract. F. Award of Contracts by City Manager. The City Manager is authorized to award contracts to the lowest responsible bidder when the City Council has budgeted funds for the item(s) and the amount of the award is not more than the budgeted amount. All contracts awarded pursuant to this Section shall require issuance of a purchase order. G. Tie Bids. If two or more bids received are for the same total amount or unit price, quality, service and delivery being equal, and if the public interest will not permit the delay of re-advertising for bids, the City Council may accept the one it chooses, or accept the lowest bona fide offer by negotiation with the tie bidders at the time of the bid opening. H. Performance Bonds. The City shall have authority to require a performance bond before entering a contract, in such amount as it shall be found reasonably necessary to protect the best interests of the City. If the City requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. I. Single Source Purchases. Single source purchase of goods or services that can be obtained from only one source may be made by a City department or the Purchasing Officer without advertising and after approval by the City Council. J. Waiver of Formal Bidding Requirement. The City Council may authorize purchase of supplies, materials, equipment or services of a value greater than $25,000.00 without complying with the above procedures when in the opinion of the Council, compliance with the procedure is not in the best interest of the City.” SECTION 4. PROFESSIONAL SERVICES. Section 3.24.090 of Chapter 3.24 of Title 3 of the Grand Terrace Municipal Code is hereby amended in its entirety as follows: “3.24.090 - Professional and contractual services. Contracts for services of specially trained and professional persons or businesses shall be exempt from bidding. If possible, quotes from three qualified vendors shall be obtained prior to the award of a contract and the award of contract may be based on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. If the contract is equal to or below $25,000.00, the contract shall require the approval of, and be executed by, the City Manager. All contracts exceeding $25,000.00 must be approved by the City Council.” C.7.b Packet Pg. 182 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 4 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) 01247.0007/827785.2 SECTION 5. . SALE OF SURPLUS SUPPLIES, MATERIAL, OR EQUIPMENT. Section 3.24.120 of Chapter 3.24 of Title 3 of the Grand Terrace Municipal Code is hereby amended in its entirety as follows: “3.24.120 - Surplus supplies, materials and equipment. All using departments shall submit to the Purchasing Officer, at such times and in such forms as he shall prescribe, reports showing all supplies, materials and equipment which are no longer used or which have become obsolete or worn out. The using department, with the concurrence of the Purchasing Officer, shall have authority to sell all supplies, materials and equipment which cannot be used by any department, or which have become unsuitable for City use, or to exchange the same for or trade the same in on new supplies and equipment. The Purchasing Officer shall also have the authority to make transfers between departments of any usable surplus supplies, materials or equipment. The sale of supplies, materials or equipment when the total estimated value exceeds $25,000.00 requires approval by the City Council. Surplus supplies, materials or equipment which cannot be sold may be donated to a local not-for-profit organization with approval of the City Manager.” SECTION 6. CONFLICT OF INTEREST. Section 3.24.190 is hereby added to Chapter 3.24 of Title 3 of the Grand Terrace Municipal Code as follows: “3.24.190 – Conflict of Interest and Unlawful Activity. Any evaluation or selection practice that would result in unlawful activity including, but not limited to, kickbacks or unlawful consideration is expressly prohibited. Any award of a contract where an employee, officer or agent has used his or her position with the City to influence a governmental decision in which he or she knows or has reason to know that he or she has a financial interest in any person or entity who seeks such a contract or in the outcome of the selection process in any way, is expressly prohibited.” SECTION 7. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remainder of this ordinance. The City Council hereby declares that it would have adopted this ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. SECTION 8. EFFECTIVE DATE. This ordinance shall be effective on the thirtieth (30th) day after the day of its adoption. SECTION 9. CERTIFICATION. The City Clerk shall certify to the adoption of this C.7.b Packet Pg. 183 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 4 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) 01247.0007/827785.2 Ordinance and cause the same to be published as required by law. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the ___ day of _______________ 2022. _____________________________ Darcy McNaboe Mayor ATTEST: ____________________________ Debra Thomas City Clerk APPROVED AS TO FORM: ____________________________ Adrian R. Guerra City Attorney C.7.b Packet Pg. 184 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 4 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) 01247.0007/827786.1 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.26.030(A) AND 3.26.050(E) OF CHAPTER 3.26 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH INCREASES THE CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000 FOR CONTRACTS FOR PUBLIC PROJECTS AND MAINTENANCE, AS DEFINED THEREIN WHEREAS, Public Contract Code Section 20100 et seq. establishes contracting, bidding, and other procedures for public projects; and WHEREAS, the Uniform Public Construction Cost Accounting Act (codified at Public Contract Code Section 22000 et seq.) provides for an alternative procedure for the City to contracting, bidding and other procedures for public projects ("Act"), provided that the City adopt this informal bidding ordinance and a resolution electing to be subject to the public construction cost accounting procedures of the Act; and WHEREAS, the City Council has adopted Resolution No. 2020-39 electing to be subject to the public construction cost accounting procedures of the Act; and WHEREAS, the City Council adopted informal bidding requirements for public projects pursuant to the Act; and WHEREAS, the City Council adopted bidding requirements for maintenance work; and WHEREAS, the City Council now desires to amend Sections 3.26.030(A) and 3.26.050(E) of Chapter 3.26 of Title 3 of the Grand Terrace Municipal Code in order to increase the City Manager’s authorization limit to $25,000 for contracts for public projects and maintenance, as defined therein. NOW THEREFORE, THE CITY COUNCIL OF THE CITY GRAND TERRACE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. AMENDMENT TO SECTION 3.26.030(A). Section 3.26.030(A) of Chapter 3.26 of Title 3 of the Grand Terrace Municipal Code is hereby amended as follows: “3.26.030 – Bid Procedures for defined public projects. A. Authority to Award. 1. The City Manager may award contracts for public projects or maintenance work of $25,000 or less pursuant to the requirements of this Chapter. C.7.c Packet Pg. 185 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 6 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) 01247.0007/827786.1 2. Contract for public projects or maintenance work over $25,000 shall be awarded by the City Council pursuant to the requirements of this Chapter. SECTION 2. AMENDMENT TO SECTION 3.26.050(E). Section 3.26.050(E) of Chapter 3.26 of Title 3 of the Grand Terrace Municipal Code is hereby amended as follows: “E. Authority to Award Contract. The City Manager is authorized to award a contract for public project or maintenance work pursuant to the process set forth in this Section if the lowest bid received is $25,000 or less. Contracts valued at more than $25,000 shall require City Council approval.” SECTION 3. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remainder of this ordinance. The City Council hereby declares that it would have adopted this ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. SECTION 4. EFFECTIVE DATE. This ordinance shall be effective on the thirtieth (30th) day after the day of its adoption. SECTION 5. CERTIFICATION. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be published as required by law. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the ___ day of _______________ 2022. _____________________________ Darcy McNaboe Mayor ATTEST: ____________________________ Debra Thomas City Clerk APPROVED AS TO FORM: C.7.c Packet Pg. 186 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 6 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) 01247.0007/827786.1 ____________________________ Adrian R. Guerra City Attorney C.7.c Packet Pg. 187 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 6 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s - 2 N d R e a d i n g ) AGENDA REPORT MEETING DATE: November 8, 2022 Council Item TITLE: Participation in State of California Cal-Card Credit Card Program PRESENTED BY: Terry Shea, Interim Finance Director RECOMMENDATION: Authorize the City Manager to execute a Master Services Agreement and any related implementation documentation to participate in the State of California for the Purchase Card Program 2030 VISION STATEMENT: This staff report supports Goal #1, Ensuring Fiscal Viability by increasing internal controls BACKGROUND: The City has used credit cards for many years to enhance the purchasing process for such things as travel arrangements and to purchase items online. The City’s credit cards are issued by Arrowhead Credit Union. These cards were issue many years ago under the name “City of Grand Terrace” rather than employees’ names. From an internal control perspective these cards leave the City more vulnerable to fraud or theft than the cards issues by the State’s Purchasing Program. DISCUSSION: The State’s Cal-Card program issues cards in the employee’s name and additionally allows the City to block specific types of purchases, such as cash advances, court costs, gambling and other purchases prohibited by the City. Staff is recommending replacing the current credit cards with Cal-Cards. Participating in the Cal-Card program is consistent with our current purchasing policy and requirements, and allows us to replace our current, rather generic cards to a more secure type of credit card. The City, in effect, is changing providers to enhance the security in using credit cards. The State of California contracts with US Bank to administer this program. Attached to this report is a policy detailing the use of Cal-Cards with specific attention noting personal purchases are NEVER allowed and should an employee use the card for personal items or unauthorized purchases they are subject to disciplinary actions. C.8 Packet Pg. 188 FISCAL IMPACT: In participating in the State of California’s Purchase Card Program (Cal-Card), the City will increase the fiscal controls for items needing to be purchased with a credit card. The costs for using Cal-Cards will not increase over the current method of using credit cards issued by local banks. ATTACHMENTS: • Request to Participate Form (PDF) • Participating_Addendum_7-20-99-42 (PDF) • Know Your Customer - Required Information Collection Form (1)(PDF) • Local Agency Subsidiary Agreement (PDF) • 27.3.08_Cal-Card Credit Card Policy (PDF) APPROVALS: Terry Shea Completed 10/18/2022 10:10 AM Finance Completed 10/18/2022 10:15 AM City Attorney Completed 11/01/2022 11:15 AM City Manager Completed 11/02/2022 3:06 PM City Council Pending 11/08/2022 6:00 PM C.8 Packet Pg. 189 [!Ljbank. CAL-Card® Request to Participate Form (Insert Name of California Tax Funded Agency) The person designated below will serve as point of contact for establishing an account or accounts with U.S. Bank. Tax ID Number: (Cities, Counties, School Districts, and Special Districts ONLY) Agency Point of Contact: (Name) (Date) (Mailing address (Phone) (City, State, Zip (Email address) # $ (Estimated number of cards) (Estimated monthly spend) Upon receipt of this Request to Participate and other required documentation as listed below, U.S. Bank will contact your agency within 3 business days. •State agencies are required to complete a State Agency Subsidiary Agreement (STD 213). Instructions on how to fll out this form can be found on the Cal eProcure webpage (https://caleprocure.ca.gov/PSRelay/ZZ�PO.ZZ�CTR� SUP�CMP.GBL?Page=ZZ�CTR�SUP�PG&Action=U&SETID=STATE&CNTRCT�ID=7-20-99-42) under Attachments. •Local agencies; cities, counties, special districts, schools districts and other non-state agencies, are required to complete a Local Agency Subsidiary Agreement, found on the CAL-Card website (www.dgs.ca.gov/cal-card�enrollment) under Stage 1. –Paper copy enclosed with original documents –Document format, please list email address for U.S. Bank to contact: –Web Address for fnancials: If your agency requires that you have original signature documents on fle at your agency, please send more than one set of the above documents to U.S. Bank. Please send all completed documents to: cpsmidmarketsalescoordinator@usbank.com If you must execute a paper document: CPS Mid Market Sales Coordinator Attn: Dave Perkins 901 Marquette Avenue, EP-MN-A17S Minneapolis, MN 55402 Questions? Email us at: cpsmidmarketsalescoordinator@usbank.com For U.S.Bank use only Received date: �� IPM: �� AM: �� ©2020 U.S. Bank. 01-0039-02 (12/20) Confdential C.8.a Packet Pg. 190 At t a c h m e n t : R e q u e s t t o P a r t i c i p a t e F o r m ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) 2. The term of this Agreement is: DEC 22 2020 AW:LAG:skb C.8.b Packet Pg. 191 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit A – Scope of Work Page 1 of 23 EXHIBIT A – SCOPE OF WORK This Participating Addendum 7-20-99-42 (hereinafter “Participating Addendum” or “Agreement”) is entered into between the State of California, Department of General Services (hereinafter “State” or “DGS”) and U.S. Bank National Association (hereinafter “Contractor”) under the State of Washington Amended and Restated NASPO ValuePoint Commercial Card Services Master Agreement 00719 (hereinafter “Master Agreement”). 1. OVERVIEW A. The State and Contractor hereby agree that Contractor will provide commercial card services to state and local agencies participating in the State of California Purchase Card Program (hereinafter referred to as “State’s CAL-Card Program”) in accordance with the terms and conditions of this Participating Addendum. B. This Participating Addendum includes commercial card products and associated services as outlined in Exhibit A, Section 5.D (Card Products and Liability), offered under the Master Agreement. C. For the purposes of this Participating Addendum, “Purchasing Entities” identified in the Master Agreement are defined in Exhibit A, Section 5.B (Eligible Participating Agencies) and will be referred to as “Participating Agencies”. D. Each Local Agency shall make its own determination whether this Agreement and the Master Agreement are consistent with its procurement policies and regulations. 2. TERM A. The Participating Addendum term will begin upon signature approval by the State and end December 31, 2025, or upon termination, whichever occurs first. B. Card services including incentive share calculation under this Participating Addendum will begin effective January 1, 2021 (“Effective Date”). Implementation, training, and set-up tasks may begin upon Participating Addendum execution. C. The State will have the option to extend the term of this Participating Addendum in the event the Master Agreement term is extended. D. Extension(s) to the term of this Participating Addendum will be through a written amendment upon mutual agreement between the State and the Contractor. C.8.b Packet Pg. 192 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit A – Scope of Work Page 2 of 23 3. ORDER OF PRECEDENCE A. In the event of a discrepancy and/or inconsistency between the articles, attachments, or provisions which constitutes this Agreement, the following descending order of precedence shall apply. 1) California Participating Addendum 7-20-99-42, Exhibit A (Scope of Work) 2) California Participating Addendum 7-20-99-42, Exhibit C (General Terms and Conditions GTC 04/17 as modified) 3) California Participating Addendum 7-20-99-42, Exhibit B (Incentive Rebates and Fees) 4) Master Agreement 5) End User Agreement referenced in section 17.3 (c) of the Master Agreement B. This Participating Addendum and the Master Agreement together with its exhibits, set forth the entire agreement between the parties. Terms and conditions inconsistent with or contrary to the terms and conditions of this Participating Addendum and the Master Agreement together with its exhibits, shall not be added to or incorporated into this Participating Addendum or the Master Agreement and its exhibits by any subsequent subsidiary agreement or otherwise, and any such attempts to add or incorporate such terms and conditions are hereby rejected. The terms and conditions of this Participating Addendum and the Master Agreement and its exhibits and/or amendments shall prevail and govern in the case of any such inconsistent or additional terms. No amendment to the Master Agreement shall be applicable to this Participating Addendum without written permission from the State through a Participating Addendum Amendment. C. Section 16.3, 16.4, 16.5, and 17.17 of the Master Agreement do not apply to this Participating Addendum. D. Participating Agency shall not be bound by any “click-through” terms and conditions or End User Agreement terms that provide for (i) the amendment of such agreement without written consent of both parties, (ii) the indemnification of any party; (iii) the governing law or venue requirements, (iv) the waiver of any applicable statute of limitations period, (v) that incorporate any terms or conditions by reference, or (vi) any term or condition that conflicts with the terms and conditions of this Participating Addendum. E. For purposes of section 17.3 (c) of the Master Agreement, “End User Agreement(s)” will refer to the Cardholder Agreement only. The Participating Addendum terms and conditions shall prevail and govern in the case of a conflict between the Cardholder Agreement and the Participating Addendum. C.8.b Packet Pg. 193 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit A – Scope of Work Page 3 of 23 4. CONTRACT MANAGEMENT A. The Contractor and State primary contacts for this Participating Addendum are as follows: Contact Contractor Relationship Manager State Contract Administrator Name Cheryl Mielnicki Maureen Seiferling Phone (623) 256-6229 (916) 376-2939 Email Cheryl.Mielnicki@usbank.com Maureen.Seiferling@dgs.ca.gov; CALCardProgram@dgs.ca.gov Address U.S. Bank National Association Attn: CPS Contracts Manager EP-MN-A175 901 Marquette Avenue S Minneapolis, MN 55402 DGS, Procurement Division Attn: State CAL-Card Program 707 3rd Street, 2nd Floor, MS 2-202 West Sacramento, CA 95605 B. Should the contact information for either party change, the party will provide written notice with updated information no later than ten business days after the change. Changes to contact information will be reflected on the State’s CAL-Card Program website without amendment to this Participating Addendum. C. Daily account management inquires will be directed to the Contractor’s dedicated customer service unit identified on the State’s CAL-Card Program website. D. The State and the Contractor will make all contractual notifications, consents, or approvals required under this Participating Addendum in writing. 5. CAL-CARD PROGRAM REQUIREMENTS A. CAL-Card Program Overview “CAL-Card” is the official registered name of the State’s Purchase Card Program administered by the DGS, Procurement Division. The purpose of the State’s CAL-Card Program is to provide eligible agencies with commercial card services for the acquisition of goods and services. B. Eligible Participating Agencies 1) State agencies and local agencies may participate in the State’s CAL-Card Program under this Participating Addendum through a subsidiary agreement process. b. “State Agency” is defined as any state of California government agency, department, bureau, board, or commission. c. “Local Agency” is defined as any city, county, city and county, district or other local governmental body or corporation empowered to expend public C.8.b Packet Pg. 194 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit A – Scope of Work Page 4 of 23 funds for the acquisition of goods, information technology, or services pursuant to Public Contract Code section 10298 (a) (b) and 10299 (b). 2) State Agencies may participate in the State’s CAL-Card Program under this Participating Addendum upon the signing and submission of a properly completed State Agency Subsidiary Agreement, in the format specified by the State, incorporating all terms and conditions of the Participating Addendum. 3) Local Agencies may participate in the State’s CAL-Card Program under this Participating Addendum upon credit approval by the Contractor and upon the signing and submission of a properly completed Local Agency Subsidiary Agreement acceptable to Contractor and State in form and substance. Local agencies shall assume responsibility and liability for Local Agency’s performance of the terms and conditions of the Participating Addendum. Each Local Agency will be subject to credit approval by the Contractor as described in Exhibit A, Section 5.C (Financial Information). 4) Upon execution of a properly completed State Agency Subsidiary Agreement or Local Agency Subsidiary Agreement with credit approval from the Contractor, the State Agency and/or or Local Agency will become a “Participating Agency” and the provision of services by the Contractor to such Participating Agency will be governed by the terms of this Participating Addendum. Participating Agencies will be financially responsible to the Contractor for all accounts issued to the Participating Agency. C. Financial Information 1) State Agencies. The state of California will be credit qualified as a single entity upon execution of the Participating Addendum. Individual state agencies will not be required to credit qualify on their own. 2) Local Agencies. To become credit qualified, each Local Agency will provide the last three (3) years of audited financial statements to Contractor prior to the issuance of any cards. Contractor shall have the right to require any Local Agency to provide annual financial statements on or before one hundred eighty (180) days after the end of the fiscal year. The Local Agency should provide this first set of financial statements with their signed, completed Local Agency Subscription Agreement. Contractor will review the financial statements and provide notice to each Local Agency of the approval or decline of their credit qualification. If satisfactory financial information can be found on a website, Contractor will not require the Local Agency to provide financial information that Contractor can obtain on its own. D. Card Products and Liability 1) Contractor will provide the following card products to Participating Agencies under the State’s CAL-Card Program: • Purchase Card (with Corporate Liability) • Managed Spend Card (Purchase Card with declining balance feature) C.8.b Packet Pg. 195 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit A – Scope of Work Page 5 of 23 • Emergency Response Card (Purchase Card with extended activation feature) • Payment Plus (Local Agency Use Only) 2) All other commercial card products offered under the Master Agreement, including but not limited to Corporate/Travel Cards, One Cards and cash advances, are excluded from this Participating Addendum. 3) All card products offered under this Participating Addendum for the State’s CAL-Card Program are corporate liability. Participating Agencies shall have no liability for lost or stolen cards or fraudulent use of any corporate liability cards. E. Statewide Transition and Implementation 1) Upon Participating Addendum execution, the Contractor will work with the State to transition current CAL-Card Participating Agencies to the new Participating Addendum. 2) Contractor and DGS State Contract Administrator will develop a transition plan specific to the State’s CAL-Card Program to ensure that an efficient and effective transition takes place. 3) Contractor will work with the DGS State Contract Administrator to meet all required elements of the agreed to plan. F. Agency Enrollment 1) Contractor will provide an agency enrollment process for new CAL-Card Program participants. 2) Within 15 calendar days of Participating Addendum execution, the Contractor shall provide the DGS State Contract Administrator with detailed agency enrollment process, procedures, and applicable formsfor review, including the Cardholder Agreement. Should the enrollment forms or Cardholder Agreement information change, the Contractor will provide written notice to the DGS State Contract Administrator with the updated information no later than 15 business days after the change. G. Card Design 1) Contractor will be responsible for the embossing and printing of cards. 2) The State will use a consistent design as the standard card stock to be used by all CAL-Card Program participants that will identify the card as a state of California CAL-Card commercial card. The Contractor will offer a custom design at no cost to the State. 3) The final content and design of the cards will be determined by Contractor with approval from the DGS State Contract Administrator. Contractor agrees that the card design will include at a minimum: • State of California designation C.8.b Packet Pg. 196 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit A – Scope of Work Page 6 of 23 • CAL-Card Logo • Statement “For Official Use Only” 4) The State will be responsible for furnishing any necessary artwork (digital file) to the Contractor for changes to the standard design during the term of the Participating Addendum. 5) Participating Agency will have the ability to customize standard card stock with verbiage and/or logo embossing. H. Card Issuance Contractor will mail cards issued to Participating Agency’s Program Administrator or designated point of contact. I. Payment Terms 1) Contractor will be responsible for providing an itemized official invoice (statement) to each Participating Agency after the end of each Billing Cycle as designed for each of the accounts established for the Participating Agency. 2) The full amount of each Participating Agency’s monthly balance or Billing Cycle balance, except for disputed transactions or Fraudulent Charges reported by Participating Agency, will be due within forty-five (45) calendar days from the receipt of the Contractor invoice. Disputes and Fraudulent Charges should be reported by Participating Agencies in accordance with card association rules. 3) Payment may be made to the Contractor via check, cash warrant, bank wire, automated clearing house, or electronic funds transfer at the Participating Agency’s option. J. Late Payment Penalties Late payment penalties for undisputed payments not received by the Contractor within the specified periods will be determined as follows: 1) State Agencies. State agencies will be required to pay late payment penalties based on the California Prompt Payment Act (Government Code Section 927 et seq.). The penalty on any undisputed late payment shall be calculated by such State Agency in accordance with the penalty interest rate factor per day formula provided in the state of California Budget Letter 20-19, Late Payment Penalty Interest Rates (or its successor letter). 2) Local Agencies. Local agencies may be subject to late payment penalties as described in Exhibit B, Section 3 (Card Fees), unless Local Agency provides Contractor with codes and/or legal authority which would prohibit Local Agency’s ability to pay penalty fees under this Participating Addendum. K. Delinquency 1) Suspension. Contractor shall have the right to suspend any account that is delinquent for a period exceeding 90 calendar days from the Billing Cycle C.8.b Packet Pg. 197 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit A – Scope of Work Page 7 of 23 close date. The 90-day period is made up of 45 day payment terms on the agreement, and another 45 day grace period. 2) Cancellation. Contractor shall have the right to cancel any account that is delinquent for a period exceeding 180 calendar days from the Billing Cycle close date, which is made up of the 45 day payment terms on the contract, and another 135 day grace period for collection efforts. If an account remains unpaid for more than 180 calendar days after the Billing Cycle close date, Contractor will also "charge off" the entire outstanding balance and deduct it from the Participating Agency's next quarterly rebate. L. Card Data Management and Reporting System Contractor shall provide its online (web-based) system, Access® Online, to designated authorized personnel from the State and Participating Agencies. M. CAL-Card Program Website and User Instructions 1) The State will administer a website dedicated to the State’s CAL-Card Program for program information, participation forms and additional resources available to Participating Agencies. In addition, the DGS State Contract Administrator will administer User Instructions for Participating Agencies. 2) Contractor may be required to provide information and/or forms to the DGS State Contract Administrator for public posting on the dedicated CAL-Card Program website and/or User Instructions. N. Participating Agency Responsibilities 1) All Participating Agencies shall prepare the necessary forms to participate in the CAL-Card Program as described in the Participating Addendum and posted User Instructions. 2) All Participating Agencies shall designate an Agency Program Administrator, who will serve as the primary point of contact between the Participating Agency and the Contractor for account management purposes. Participating Agencies should also designate a secondary or back-up Agency Program Administrator to ensure program continuity. 3) State agencies participating in the CAL-Card Program shall comply with all applicable procurement laws, regulations, policies, procedures, and best practices, including those discussed in the State Contracting Manuals and User Instructions guide. O. Customer Support 1) Contractor will provide a dedicated customer service team to support the State’s CAL-Card Program throughout the term of the Participating Addendum. 2) Within 10 calendar days of Participating Addendum execution, the Contractor shall provide the DGS State Contract Administrator with customer service information including but not limited to: C.8.b Packet Pg. 198 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit A – Scope of Work Page 8 of 23 • Relationship Manager information • Account Coordinator information • Customer service unit information • Any additional Contractor support contacts (i.e. technical support, Cardholder support, etc.) provided for the State’s CAL-Card Program. 3) Should the customer service information or personnel change during the term of the Participating Addendum, Contractor will provide written notice to the DGS State Contract Administrator 10 calendar days before changes or substitutions take place. Substitutions of personnel will include replacements with similar qualifications. 4) The State reserves the right to request additional personnel and/or replacement of current personnel at any time. Contractor will be notified in writing at least 10 calendar days before additional personnel and/or replacement personnel are needed. P. Training 1) Contractor will provide ongoing training for all CAL-Card Program participants throughout the term of the Participating Addendum. 2) Contractor will work with the DGS State Contract Administrator on a training plan to be offered for the CAL-Card Program including training types, schedule, user reference guides and additional training materials. Q. Transaction Data Reporting (for Participating Agencies) 1) Custom Financial Extract Files. Contractor shall provide, at no cost to the Participating Agency, the ability to download data from Access® Online and the automatic creation of batch upload files containing accounting data to Participating Agency’s internal accounting systems to include, at a minimum, a custom interface file to any internal system(s) designated by the Participating Agency. Contractor will be required to provide custom extract files at the request of the State and/or Participating Agency. The custom extract file shall be created in such a manner that it can be imported into the Participating Agency's internal accounting/financial system with no special programming or manual entry of transaction data. 2) Financial Information System for California (“FI$Cal”). Contractor will be required to provide custom interface files, at no cost to the State, for the State’s financial management system (“FI$Cal system”). The Contractor will work with state of California, FI$Cal personnel to design, develop, test and implement the custom financial extract solution for the FI$Cal system. The custom interface file shall be created in such a manner that it can be imported into the FI$Cal system with no special programming or manual entry of transaction data. FI$Cal and Contractor will be responsible for providing necessary items to complete work as determined between the parties including but not limited to tasks, deliverables, schedule, system security and file requirements. C.8.b Packet Pg. 199 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit A – Scope of Work Page 9 of 23 R. End-of-Life Transition Contractor agrees that at the end of the Participating Addendum, should the State conduct another procurement and award a new agreement, the Contractor will work with the DGS State Contract Administrator to ensure that an efficient and effective transition takes place within nine (9) months. 6. REPORTING Contractor will be required to provide the following reports to the State. The DGS State Contract Administrator may request additional reporting information for CAL-Card Program activity during the term of the Participating Addendum. Contractor will work with DGS State Contract Administrator to provide requested reports. A. Usage/Rebate Report 1) Contractor shall provide an electronic Usage/Rebate Report to the State on a quarterly basis. The report shall provide incentive share (rebates) for each Participating Agency for the calendar quarter. 2) Report must contain at a minimum, but not limited to, the data elements identified below: • Participating Agency Name • Quarterly Standard Volume Sales • Quarterly Non-Standard Volume Sales • Quarterly Volume Sales (Standard and Non-Standard) • Average Client-Held Days • Calculated incentive share (rebates) for each Participating Agency • Charge-Offs • Total actual incentive share (rebates) paid to Participating Agency • Total Number of Transactions • Number of Accounts 3) Report shall be provided to the DGS State Contract Administrator, in Excel format via email, within 60 days following the last day of the quarter. B. Delinquency Report 1) Contractor shall provide an electronic Delinquency Report to the State on a monthly basis. 2) The report shall list Participating Agencies with past due balances greater than 45 calendar days. 3) Report shall be provided to the DGS State Contract Administrator, in Excel format, within 15 calendar days following the last day of the calendar month. C. Agency Program Administrator Contact Report 1) Contractor shall provide an electronic Program Administrator Contact Report to the DGS State Contract Administrator on a quarterly (3 calendar months) basis and/or upon written request. C.8.b Packet Pg. 200 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit A – Scope of Work Page 10 of 23 2) The report shall provide Agency Program Administrator information (including at a minimum agency name, contact name, email, and phone number) for each Participating Agency. 3) Report shall be provided to the DGS State Contract Administrator, in Excel format, within 60 calendar days following the last day of the quarter or within 15 calendar days of the State’s written request. D. Relationship Hierarchy Report 1) Contractor shall provide an electronic Relationship Hierarchy Report to the DGS State Contract Administrator on a monthly basis and/or upon written request. 2) The report shall include, at a minimum, Organization Short Name (OSN), agency name, unique agency identifier, and hierarchy levels. 3) Report shall be provided to the DGS State Contract Administrator, in Excel format via email, within 15 calendar days following the last day of the calendar month. 7. TERMINATION A. Termination (By State or Participating Agency) 1) The State may terminate the Participating Addendum and any Participating Agency may terminate its respective Subsidiary Agreement for cause upon a reasonable and good faith determination that the Contractor failed to perform the material requirements of the agreement at the time and in the manner herein provided. In the event of a breach, the State or Participating Agency will send the Contractor a notice specifying the breach and providing the Contractor an opportunity to cure the breach within a period of time no less than 30 calendar days (“Cure Period”). If the breach is not cured within the Cure Period as stated in the notice, the State will have the right to terminate the Participating Addendum and the Participating Agency will have the right to terminate its respective Subsidiary Agreement by notice to the Contractor. 2) The State may terminate the Participating Addendum without cause upon 60 calendar days advance written notice to the Contractor. Participating Agencies may terminate their respective Subsidiary Agreements without cause upon 30 calendar days advance written notice to the Contractor. 3) Upon termination of the Participating Addendum and/or Participating Agency’s Subsidiary Agreement, each party will assist the other party in orderly termination of the agreement and transfer of all assets, tangible and intangible, as may facilitate the orderly, undisrupted business continuation of each party. Participating Agencies shall be responsible for payment of all amounts owed to Contractor related to charges incurred up until the effective date of termination. C.8.b Packet Pg. 201 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit A – Scope of Work Page 11 of 23 B. Termination (By Contractor) 1) Contractor has the right to send the Participating Agency a written notice specifying a default in the following section (a) and providing the Participating Agency an opportunity to cure the breach within a period of time no less than 30 calendar days (“Cure Period”). If the breach is not cured within the Cure Period as stated in the notice, then Contractor has the right to terminate any card product and/or ancillary service provided to a Participating Agency, or terminate the Participating Agency’s Subsidiary Agreement in its entirety, by written notice to the Participating Agency. a. Material breach of any term or condition by Participating Agency. 2) Contractor has the right to terminate a Participating Agency’s Subsidiary Agreement, in its entirety and effective immediately if any of the following events occur: a. Dissolution or liquidation of the Participating Agency; or b. Insolvency of, the filing of a bankruptcy or insolvency proceeding with respect to, or the appointment of a receiver or trustee for the benefit of creditors of the Participating Agency, or the Participating Agency enters into any other similar proceeding or arrangement for the general benefit of its creditors. 3) Upon termination, all applicable cards, accounts, and/or related services shall be deemed canceled upon a stated termination date as referenced in the termination notification. Upon termination, Participating Agency shall instruct all Cardholders to destroy their cards and/or any records of account numbers and Contractor shall terminate all applicable services thereunder upon a stated termination date. Participating Agency shall remain liable for all debts arising from the use of a card and/or account prior to the termination date. 8. SPECIAL PROVISIONS A. Insurance Certificates Contractor shall furnish copies of certificates for all required insurance, as specified in the Master Agreement, to the DGS State Contract Administrator within 30 calendar days of the Participating Addendum execution. Copies of renewal certificates for all required insurance shall be furnished within 30 calendar days after renewal date. B. Availability of Funds This Agreement is valid and enforceable only if sufficient funds are made available by the Budget Act of the appropriate fiscal year for the purposes of this program. In addition, this Agreement is subject to any additional restriction, limitations or conditions enacted by the Legislature, which may affect the provisions, terms, or funding of this Agreement in any manner. In the event sufficient funds are not made available to the State, the State has the option to C.8.b Packet Pg. 202 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit A – Scope of Work Page 12 of 23 terminate the Agreement and Participating Agencies shall remain responsible for payment of all amounts owed to Contractor related to charges incurred up until the effective date of termination. C. Contracts Funded by the Federal Government It is mutually understood between the parties that this Agreement may have been written for the mutual benefit of both parties before ascertaining the availability of congressional appropriation of funds to avoid program and fiscal delays that would occur if the Agreement were executed after that determination was made. This Agreement is valid and enforceable only if sufficient funds are made available to the State by the United States Government for the current and/or subsequent years covered by this Agreement for the purpose of this program. In addition, this Agreement is subject to any additional restrictions, limitations, or conditions enacted by the Congress or to any statute enacted by the Congress that may affect the provisions, terms, or funding of this Agreement in any manner. The parties mutually agree that if the Congress does not appropriate sufficient funds for the program, this Agreement shall be amended to reflect any reduction in funds. The State has the option to terminate the Agreement or to amend the Agreement to reflect any reduction in funds. In the event of termination, Participating Agencies shall remain responsible for payment of all amounts owed to Contractor related to charges incurred up until the effective date of termination. D. News Releases Unless otherwise exempted, news releases, endorsements, advertising, and social media content pertaining to this Participating Addendum or the State’s CAL-Card Program shall not be made without prior written approval of DGS. C.8.b Packet Pg. 203 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit B – Incentive Rebates and Fees Page 13 of 23 EXHIBIT B – INCENTIVE REBATES AND FEES This exhibit identifies the incentive share (rebates) and fees applicable under this Participating Addendum. Incentives will stay in effect for the entire Agreement term including any extension period. 1. INCENTIVE SHARE COMPONENTS/PAYMENTS A. Rebate/Incentive Share #1 – Standard Volume Incentive 1) Each Participating Agency will receive a basis point (percentage) of their quarterly Standard Sales Volume. 2) The formula for calculating the Standard Volume Incentive is: (Quarterly Total Volume – Quarterly Non-Standard Volume) x Basis Points = Quarterly Standard Volume Incentive. 3) Standard Volume Basis Points: 135 (or 1.35%). B. Rebate/Incentive Share #2 – Non-Standard Volume Incentive 1) Each Participating Agency will receive a Basis Point (percentage) of their quarterly Non-Standard Sales Volume. Non-Standard Sales Volume includes Large Ticket and Merchant Negotiated Interchange Transactions. 2) The formula for calculating the Non-Standard Volume Incentive is: (Large Ticket Quarterly Volume x Large Ticket Basis Points) + (Merchant Negotiated Interchange Quarterly Volume x Merchant Negotiated Interchange Basis Points) = Quarterly Non-Standard Volume Incentive. 3) Large Ticket Basis Points: 135 (or 1.35%). 4) Merchant Negotiated Interchange Basis Points: 135 (or 1.35%). C. Rebate/Incentive Share #3 – Prompt Payment Incentive 1) Each Participating Agency will receive a Basis Point (percentage) of their Quarterly Total Volume based on the entity’s average speed of pay. 2) The formula for calculating the Prompt Payment Incentive is: Quarterly Total Volume x Basis Points for Entity Average Client-Held Days = Quarterly Prompt Payment Incentive. 3) Contractor will calculate the average Client-Held Days by dividing the sum of daily balances during each quarter by the Quarterly Total Volume (plus cash- advances), subtracting 15 from the result, and rounding up to the next whole number. 4) Basis Points for Entity Average Client-Held Days are outlined in Table 1.C.1. C.8.b Packet Pg. 204 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit B – Incentive Rebates and Fees Page 14 of 23 Table 1.C.1 - Prompt Payment Basis Points Average Client-Held Days Basis Points (bps) / Percent (%) 1 44 bps / 0.44% 2 43 bps / 0.43% 3 42 bps / 0.42% 4 41 bps / 0.41% 5 40 bps / 0.40% 6 39 bps / 0.39% 7 38 bps / 0.38% 8 37 bps / 0.37% 9 36 bps / 0.36% 10 35 bps / 0.35% 11 34 bps / 0.34% 12 33 bps / 0.33% 13 32 bps / 0.32% 14 31 bps / 0.31% 15 30 bps / 0.30% 16 29 bps / 0.29% 17 28 bps / 0.28% 18 27 bps / 0.27% 19 26 bps / 0.26% 20 25 bps / 0.25% 21 24 bps / 0.24% 22 23 bps / 0.23% 23 22 bps / 0.22% Average Client-Held Days Basis Points (bps) / Percent (%) 24 21 bps / 0.21% 25 20 bps / 0.20% 26 19 bps / 0.19% 27 18 bps / 0.18% 28 17 bps / 0.17% 29 16 bps / 0.16% 30 15 bps / 0.15% 31 14 bps / 0.14% 21 13 bps / 0.13% 33 12 bps / 0.12% 34 11 bps / 0.11% 35 10 bps / 0.10% 36 9 bps / 0.09% 37 8 bps / 0.08% 38 7 bps / 0.07% 39 6 bps / 0.06% 40 5 bps / 0.05% 41 4 bps / 0.04% 42 3 bps / 0.03% 43 2 bps / 0.02% 44 1 bps / 0.01% 45 0 bps / 0.00% D. Rebate/Incentive Share #4 – National Volume Incentive 1) For the purposes of this Participating Addendum, the Contractor agrees to pay the National Annual Volume Incentive (Incentive #4) to the State on a quarterly basis. 2) The State will receive a Basis Point (percentage) of the total sales (for all Participating Agencies). 3) The formula for calculating the National Volume Incentive is: Quarterly Total Volume (all Participating Agencies) x Basis Points = National Volume Incentive. 4) National Volume Basis Points: 34.75 (or 0.3475%) 2. INCENTIVE SHARE PAYMENT SCHEDULE AND TERMS A. Participating Agency Incentives (Rebate/Incentive Share Components #1-3) 1) To be eligible for a Rebate/Incentive Share, the Participating Agency must not be subject to an uncured default at the time the Rebate/Incentive Share C.8.b Packet Pg. 205 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit B – Incentive Rebates and Fees Page 15 of 23 payment is due for such quarter. If the Participating Agency fails to satisfy the conditions of this section at the time of the scheduled Rebate/Incentive Share payment, the Contractor will not be required to pay the Participating Agency a Rebate/Incentive Share payment for such quarter. 2) Rebate/Incentive Share Components #1-3 will be paid quarterly to the Participating Agency within 60 days following the last day of each calendar quarter. Quarter 1: January 1 - March 31 Quarter 2: April 1 - June 30 Quarter 3: July 1 - September 30 Quarter 4: October 1 - December 31 3) Payment made for Rebate/Incentive Share Components #1-3 will be net of accumulated Charge-Offs. 4) Any Charge-Offs in excess of the net Rebate/Incentive Share Components #1-3 from one (1) calendar quarter will be subtracted from one (1) or more of the following calendar quarters. 5) Any Participating Agency that does not earn a minimum of $75.00 for combined Incentive Share Components #1-3 per calendar quarter will forfeit its incentive share for that quarter. 6) Each Participating Agency may choose to receive payments in one of two separate manners as set forth below: a. By check (Participating Agency must provide Contractor with a W-9); or b. By Automated Clearing House or ACH (Participating Agency must provide Contractor with a contact who will register for such ACH payment) 7) In the event that the Participating Agency’s Subsidiary Agreement is terminated prior to the completion of any quarter, payment for Rebate/Incentive Share Components #1-3 shall be made to the Participating Agency within 60 days following the last day of the quarter in which the termination occurred for any incentive share earned prior to the termination date. 8) If the Participating Agency’s final Rebate/Incentive Share is a negative amount, the Participating Agency shall reimburse the Contractor up to the amount of Rebate/Incentive Share Contractor has previously paid to the Participating Agency. B. State Incentives (Incentive Share Component #4) Rebate/Incentive Share Component #4 will be paid quarterly to the DGS, Procurement Division within 60 days following the last day of each calendar quarter. Rebate/Incentive Share Component #4 will be paid via ACH to the DGS Procurement Division, unless the DGS, Procurement Division requires another form of payment. C.8.b Packet Pg. 206 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit B – Incentive Rebates and Fees Page 16 of 23 In the event that the Participating Addendum is terminated prior to the completion of any calendar quarter, payment for Rebate/Incentive Share Component #4 shall be made shall be made to the DGS, Procurement Division 60 days following the last day of the quarter in which the termination occurred for volume sales which occurred prior to the Participating Addendum termination date. 3. CARD FEES Applicable purchase card fees include: Description Fee Annual Card Fee $0.00 Logo Embossing Fee $0.00 Overnight Delivery Fee $0.00 Electronic Statement Attachments $0.00 Foreign Transaction Fee, per occurrence 1.00% Late Fee, Applicable for Local Agencies only per Exhibit A, Section 5.J.2 1.00% per month on the amount overdue starting at 60 days past due and each subsequent Billing Cycle (minimum of $2) C.8.b Packet Pg. 207 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit C – General Terms and Conditions Page 17 of 23 EXHIBIT C – GENERAL TERMS AND CONDITIONS (GTC 04/2017 as modified) 1. APPROVAL This Agreement is of no force or effect until signed by both parties and approved by the Department of General Services, if required. Contractor may not commence performance until such approval has been obtained. 2. AMENDMENT No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or Agreement not incorporated in the Agreement is binding on any of the parties. 3. ASSIGNMENT This Agreement is not assignable by the Contractor, either in whole or in part, without the consent of the State in the form of a formal written amendment. 4. AUDIT Contractor agrees that the awarding department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. Contractor agrees to maintain such records for possible audit for a minimum of six (6) years after final payment, unless a longer period of records retention is stipulated. Contractor agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, Contractor agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Agreement. (Gov. Code §8546.7, Pub. Contract Code §10115 et seq., CCR Title 2, Section 1896). 5. INDEMNIFICATION Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Contractor in the performance of this Agreement. 6. DISPUTES Contractor shall continue with the responsibilities under this Agreement during any dispute. C.8.b Packet Pg. 208 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit C – General Terms and Conditions Page 18 of 23 7. TERMINATION FOR CAUSE (Stricken in its entirety – See Exhibit A, Section 7) 8. INDEPENDENT CONTRACTOR Contractor, and the agents and employees of Contractor, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the State. 9. RECYCLING CERTIFICATION The Contractor shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post-consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to the State regardless of whether the product meets the requirements of Public Contract Code Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (Pub. Contract Code §12205). 10. NON-DISCRIMINATION CLAUSE During the performance of this Agreement, Contractor and its subcontractors shall not deny the contract’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Contractor shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§11135-11139.5), and the regulations or standards adopted by the awarding State Agency to implement such article. Contractor shall permit access by representatives of the Department of Fair Employment and Housing and the awarding State Agency upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or Agency shall require to ascertain compliance with this clause. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.) Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Agreement. C.8.b Packet Pg. 209 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit C – General Terms and Conditions Page 19 of 23 11. CERTIFICATION CLAUSES The CONTRACTOR CERTIFICATION CLAUSES contained in the document CCC 04/2017 posted on the DGS Office of Legal Services website (https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services- Resources-List-Folder/Standard-Contract-Language) are hereby incorporated by reference and made a part of this Agreement by this reference as if attached hereto. 12. TIMELINESS Time is of the essence in this Agreement. 13. COMPENSATION The consideration to be paid Contractor, as provided herein, shall be in compensation for all of Contractor's expenses incurred in the performance hereof, including travel, per diem, and taxes, unless otherwise expressly so provided. 14. GOVERNING LAW This Agreement is governed by and shall be interpreted in accordance with the laws of the State of California. 15. ANTITRUST CLAIMS The Contractor by signing this Agreement hereby certifies that if these services or goods are obtained by means of a competitive bid, the Contractor shall comply with the requirements of the Government Codes Sections set out below. b. The Government Code Chapter on Antitrust claims contains the following definitions: 1) "Public purchase" means a purchase by means of competitive bids of goods, services, or materials by the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code. 2) "Public purchasing body" means the State or the subdivision or agency making a public purchase. Government Code Section 4550. c. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder. Government Code Section 4552. C.8.b Packet Pg. 210 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit C – General Terms and Conditions Page 20 of 23 d. If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. Government Code Section 4553. e. Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and (a) the assignee has not been injured thereby, or (b) the assignee declines to file a court action for the cause of action. See Government Code Section 4554. 16. CHILD SUPPORT COMPLIANCE ACT: For any Agreement in excess of $100,000, the Contractor acknowledges in accordance with Public Contract Code §7110, that: a. The Contractor recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and b. The Contractor, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. 17. UNENFORCEABLE PROVISION In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby. 18. PRIORITY HIRING CONSIDERATIONS: If this Agreement includes services in excess of $200,000, the Contractor shall give priority consideration in filling vacancies in positions funded by the Contract to qualified recipients of aid under Welfare and Institutions Code §11200 in accordance with Public Contract Code §10353. C.8.b Packet Pg. 211 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit C – General Terms and Conditions Page 21 of 23 19. SMALL BUSINESS PARTICIPATION AND DVBE PARTICIPATION REPORTING REQUIREMENTS: a. If for this Agreement Contractor made a commitment to achieve small business participation, then Contractor must within 60 days of receiving final payment under this Agreement (or within such other time period as may be specified elsewhere in this Agreement) report to the awarding department the actual percentage of small business participation that was achieved. (Government Code §14841.) b. If for this Agreement Contractor made a commitment to achieve disabled veteran business enterprise (DVBE) participation, then Contractor must within 60 days of receiving final payment under this Participating (or within such other time period as may be specified elsewhere in this Contract) certify in a report to the awarding department: (1) the total amount the prime Contractor received under the Contract; (2) the name and address of the DVBE(s) that participated in the performance of the Contract; (3) the amount each DVBE received from the prime Contractor; (4) that all payments under the Agreement have been made to the DVBE; and (5) the actual percentage of DVBE participation that was achieved. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation. (Mil. & Vets. Code §999.5(d); Government Code §14841.) 20. LOSS LEADER: If this Agreement involves the furnishing of equipment, materials, or supplies then the following statement is incorporated: It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions Code. (Public Contract Code §10344(e). C.8.b Packet Pg. 212 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit D – Definitions Page 22 of 23 EXHIBIT D – DEFINTIONS Access® Online: Contractor’s web-based system for card program management and reporting. Account: Any account number assigned to a Participating Agency to which charges and payments may be posted. Agency Program Administrator: The employee designated by Participating Agency to serve as the primary point of contact between Participating Agency and Contractor and shall be responsible for the Participating Agency’s CAL-Card program management and oversight. This includes contract terms, timely payment of invoices, the development and enforcement of agency policy, procedures, and training program. A Purchasing Officer or equivalent normally holds this position. Billing Cycle: A specific recurring time period between the time statements of account/invoices are processed. CAL-Card: The official registered service mark name for the state of California’s Purchase Card Program. Cardholder: An individual employee of Participating Agency, that is designated by the Agency Program Administrator to be a CAL-Card card recipient, named as the holder of the Account or using the Account in the name of Participating Agency and make official government purchases. Charge: Any transaction posted to an Account that has a debit value. Charge-Off: The entire amount due and owing to the Contractor by the Participating Agency that remains outstanding on an Account that was left unpaid for 180 calendar days after the Billing Cycle close date or that was left unpaid as a result of a bankruptcy. Fraudulent Charges: Charges which are not initiated, authorized, or otherwise requested by Participating Agency and/or a Cardholder by any means (electronic, telephonic or written) and do not directly or indirectly benefit Participating Agency and/or a Cardholder. Incentive Share: Actual monies paid to the State and/or each Participating Agency based on volume and speed of pay. Local Agency: Any city, county, district, or other local governmental body or corporation empowered to expend public funds for the acquisition of goods, information technology, or services pursuant to Public Contract Code §10298-10299. Participating Agency: A State Agency that has executed a properly completed State Agency Subsidiary Agreement, or a Local Agency that has executed a properly completed Local Agency Subsidiary Agreement and received required credit approval C.8.b Packet Pg. 213 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) California Participating Addendum 7-20-99-42 Exhibit D – Definitions Page 23 of 23 from the Contractor, for participation in the State’s CAL-Card Program under the Participating Addendum. Payment Plus: U.S. Bank Virtual Pay product (Electronic Purchase Card, card-less Accounts to pay supplies in accounts payable, also known as Payment Plus). Quarter: Three (3) month period based on the yearly calendar as follows: Quarter 1 (Q1) – January, February & March Quarter 2 (Q2) – April, May & June Quarter 3 (Q3) – July, August, September Quarter 4 (Q4) – October, November & December. State Agency: A state of California government agency, department, bureau, board, or commission. State Contract Administrator or DGS State Contract Administrator: Individual designated by the Department of General Services as the primary point of contact for the Participating Addendum and CAL-Card Program. Subsidiary Agreement: Agreement executed by qualified eligible agencies, agreeing to all terms and conditions of the Participating Addendum and participation in the State’s CAL-Card Program. C.8.b Packet Pg. 214 At t a c h m e n t : P a r t i c i p a t i n g _ A d d e n d u m _ 7 - 2 0 - 9 9 - 4 2 ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) [!IJbank. Know Your Customer Required Information Collection Form To help the United States government fght the funding of terrorism and prevent money laundering activities, U.S. Federal law requires all fnancial institutions to obtain, verify, and record information that identifes each person (individual, corporation, partnership, trust, estate, or any other entity recognized as a legal person) who opens an account. U.S. Bank will ask for the legal name, address, tax identifcation number, and other identifying information that will assist us in completing the review of your contract/application. We may also ask for copies of certifed articles of incorporation, an unexpired government-issued business license, a partnership agreement, or other documents that indicate the existence and standing of the entity. U.S. Federal law also requires fnancial institutions to conduct ongoing customer due diligence, verify the identity of benefcial owners of certain legal entities, and comply with U.S. Economic Sanctions. U.S. Bank may require identifcation information on Customer, its Affliates, Related Parties, or Cardholders, if applicable, to allow U.S. Bank to remain in compliance with U.S. Federal law or U.S. Bank policy. Customer agrees to promptly provide such identifcation information to U.S. Bank, and Customer shall cause its Affliates, Related Parties or Cardholders, if applicable, to provide identifcation information to U.S. Bank. How to complete this form: Answer all questions completely and thoroughly, reviewing the requirements of each section. Do not leave any section blank unless you qualify under Section B. Provide the First, middle (if applicable), and last name for all individuals supplied on this form. Missing information will cause delays in processing. Abbreviations or acronyms are not acceptable. Post Offce Boxes or Personal Mailboxes are not acceptable, please provide physical address for any addresses provided. You must notify U.S. Bank if any information contained in the form changes. Section A: Customer Information Company Name: (Provide the full legal name of the customer as it is captured on formation documents, this does not include DBA/ Trade names or Operating As names (Examples: Articles of Incorporation, Partnership Agreements, etc.). If the entity is a Sole Proprietorship, provide the full legal name of the Owner.) Company Information Identifcation number: • (TIN / EIN; SSN / ITIN) Legal Physical Address: (Where your business is located. Do not provide your mailing address) Does your company have a Trade Name / Doing Business As (DBA) name(s)? Yes  No If Yes, provide only the DBA(s) or trade name(s) that are applicable to your relationship with U.S. Bank: Provide the DBA address(es) if it is different than the company address: Section B: Exempt Entities – Do any of the below business types apply to your business? • If yes, check the boxes below that apply. Then complete Sections C and Section D only. • If no, supply formation documents, if available and complete the entire form. Is your business a U.S. Department or Agency, including Indian Tribal Government, or was it formed under in interstate compact between two or more states? U.S. Political Subdivision (Local Government Entity) Financial institution that is regulated by a Federal or State Regulator: Any entity established under an interstate compact, including Indian Tribal Governmental Entities An entity that is listed on the New York, NYSE Market LLC or NASDAQ stock exchanges – this only applies to U.S. operations Subsidiary of a Publicly Traded parent listed on NYSE, NYSE MKT LLC, or NASDAQ stock exchanges*. This only applies to U.S. operations and U.S entities where equity of 51% or more is held by a U.S. listed entity. *Excludes subsidiaries and entities listed under “NASDAQ Capital Market (Nasdaq-CM) Companies” Name of Exchange: Ticker Symbol: Page 1 of 2 C.8.c Packet Pg. 215 At t a c h m e n t : K n o w Y o u r C u s t o m e r - R e q u i r e d I n f o r m a t i o n C o l l e c t i o n F o r m ( 1 ) ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) [!I1bank. Section C: Standard Due Diligence Questions – This section is required to be completed by all applicants 1 What is the nature of your business? (What products or services do you supply?) • Include NAICS if known 2 Does your business operate in the hemp industry? (If yes supply USDA License, or State/Tribal Government License along with this form) Yes  No 3 What is the legal structure of your business? (e.g., Corporation, Limited Partnership/LLP, Not-for-Proft Organization, LLC, Single Member LLC, Partnership, Sole Proprietor, Government) 4 What is the company’s country of formation? 5 What is the country of primary business operations for the company? 6 Does the company provide any of the following services to your customers? If Yes, which service? check cashing services Yes  No issue or cash travelers checks or money orders Yes  No provide money transmission or foreign exchange services Yes  No offer prepaid cards Yes  No 7 What is the company’s estimated or projected annual revenue/budget (USD)? (If none, please indicate with $0. None and N/A are not allowed.) $ 8 What is the purpose of this account? Section D: Related Parties –One individual is required to be listed. Additional individuals are optional. Full Name (First, Middle, Last) OR Full Legal Name Provide one of the following items: Date of Birth (mm/dd/yyyy), OR Physical Residential Address (preferred) OR Business Address OR SSN Authorized Signer – is the individual(s), who signs the U.S. Bank contract or Application 1 Authorized Signer No middle name 2 Authorized Signer No middle name © 2022 U.S. Bank. All trademarks are the property of their respective owners. U.S. Bank Customer Confdential Know Your Customer: Required Information Collection Form Page 2 of 2 08-0011-01-USX-CAL (Rev. 03/22) CAT-18928336 C.8.c Packet Pg. 216 At t a c h m e n t : K n o w Y o u r C u s t o m e r - R e q u i r e d I n f o r m a t i o n C o l l e c t i o n F o r m ( 1 ) ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) C.8.d Packet Pg. 217 At t a c h m e n t : L o c a l A g e n c y S u b s i d i a r y A g r e e m e n t ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) C.8.d Packet Pg. 218 At t a c h m e n t : L o c a l A g e n c y S u b s i d i a r y A g r e e m e n t ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) C.8.d Packet Pg. 219 At t a c h m e n t : L o c a l A g e n c y S u b s i d i a r y A g r e e m e n t ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) C.8.d Packet Pg. 220 At t a c h m e n t : L o c a l A g e n c y S u b s i d i a r y A g r e e m e n t ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) City of Grand Terrace Fiscal Policy Policy No. 3.08 Subject: Cal-Card Credit Card Policy Approval Date: 10/25/2022 Page 1 of 6 I. PURPOSE AND SCOPE To provide instructions of the proper use of Cal-Cards for the purchase of supplies, materials, equipment, and services. II. POLICY A. The City uses a variety of methods for the purchase of goods and services, including petty cash, purchase orders and request for payments. Processing purchase orders is not cost effective for low dollar value goods and occasionally suppliers will not accept a purchase order. In addition, the Cal-Card will allow cardholders to take advantage of short-term sale discounts and to make purchases and/or reservations by phone and the internet. The purpose of this guide is to provide the Cardholder, with instructions on the proper use of the U.S. Bank Cal-Card Purchasing Card. III. APPLICABILITY A. This policy applies to all City employees who are issued a Cal-Card. B. This policy will provide instructions on the proper use of the City credit card for purchases of supplies, materials, and equipment not to exceed limits established by the City Manager, the Finance Director and your Department Head. C. U.S. Bank Corporate Payment Services provides the City with VISA credit cards. This card has been specifically designed to look different from personal credit cards. The card bears the City of Grand Terrace name and the cardholder’s name. D. The bank will have no other individual cardholder information other than the cardholder’s work address. No credit records, social security numbers, etc., are maintained by U.S. Bank. IV. GENERAL INFORMATION A. The credit card is a supplement to the purchasing process. B. The City’s Purchasing Policies apply to all card purchases. In addition to the established policies the following conditions must be met when using the credit card: 1. The credit card should be used whenever possible in lieu of petty cash or small value purchase orders. A purchase order is not required when using the Cal-Card. 2. Each single purchase may be comprised of multiple items but the total including tax and shipping, cannot exceed the single purchase dollar limit on your card. 3. For the purchases that exceed transaction or spending limits, you must contact the Finance Director prior to using the card. C.8.e Packet Pg. 221 At t a c h m e n t : 2 7 . 3 . 0 8 _ C a l - C a r d C r e d i t C a r d P o l i c y ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) City of Grand Terrace Fiscal Policy Policy No. 3.08 Subject: Cal-Card Credit Card Policy Approval Date: 10/25/2022 Page 2 of 6 4. Cardholders must ensure that sufficient budgeted funds are available prior to making any purchases. The Finance Department can assist you in verifying that funds are available. C. The issuance of a credit card in your name does not allow the credit card company to do any credit check on your personal credit. They will not request any personal information from you, nor should any personal information be furnished. D. Use of the credit card is nor intended to replace effective purchasing planning which enables volume discounts, nor does it relieve you from adhering to all City and departmental acquisition regulations, policies and procedures. The City’s Purchasing Policy still applies. If you have any questions about the purchasing regulations, please contact the Finance Department. E. If a purchase made with your credit card is questioned, you must be able to explain the nature of the purchase. If you cannot substantiate that the purchase was necessary and for official City use, the Finance Director and/or City Manager will address this situation in accordance with City policy. F. Questions regarding your account or specific procedures should be directed to the Finance Department. G. ONLY purchases for City business are allowed. At no time will the cardholder use the Cal-Card for personal purposes. V. CARD RESTRICTIONS A. The credit card can be used to purchase supplies, materials and equipment that do not exceed the single transaction limit. The credit card shall not be used for the following: 1. Financial Institutions Manual & Automatic Cash Advances. 2. Wire Transfer-Money Orders. 3. Purchases from Vendors with established open purchase orders. (Minor exceptions) 4. Rentals EXCEPT for small pieces of equipment not exceeding a week in duration. 5. Items available from City wide contracts and agreements such as office supplies. (Minor exceptions) 6. Machinery that requires a maintenance agreement. 7. Payments to independent contractors. 8. Fixed Asset Purchases - All Fixed Assets ($2,500 or more in value) must be purchased with a City purchase order. 9. See also CAL-Card Restricted Merchant Category Codes List. B. Other restrictions may be applied by the City Manager and the Finance Director. If you have any questions regarding restricted purchases contact the C.8.e Packet Pg. 222 At t a c h m e n t : 2 7 . 3 . 0 8 _ C a l - C a r d C r e d i t C a r d P o l i c y ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) City of Grand Terrace Fiscal Policy Policy No. 3.08 Subject: Cal-Card Credit Card Policy Approval Date: 10/25/2022 Page 3 of 6 Finance Director at 909-954-5188. VI. AREAS OF RESPONSIBILITY A. U.S. BANK RESPONSIBILITIES 1. U.S. Bank is the Credit Card contractor who will issue the Credit Cards. All cardholders will receive their Credit Card from the Finance Department. Cardholders will be advised when their card is available. The cardholder must sign a memorandum acknowledging receipt of the Credit Card and sign that they have read and fully understood the CAL-Card Policies and Procedures. B. FINANCE DEPARTMENT RESPONSIBILITIES 1. The Finance Department will administer the CAL-Card program and be responsible for accumulating, reporting, coordinating, developing and administering a complete training program and evaluating all aspects of the program. The Finance Department will also be responsible for issuing final payment, upon correct & complete submission. In addition the Finance Department will: a. Ensure Cardholder Statements are received in a timely manner as describe in this policy. b. Ensure all proper documentation is attached to the monthly Procurement Credit Card Statement and review all charges for appropriateness, prohibited items, and correct budget codes. c. Resolve questions that you may have on the purchases that appear on the Cardholder Statement. d. Request new cards. e. Request and/or approve increased or decreased limits to existing Cardholder's Account. f. Reconcile receipts to monthly statements. g. Ensure that all purchases comply with the City's Cal-Card Program and with the City's Purchasing Policy. Resolution for improper use of the credit card can result in card termination and disciplinary action. C. CARDHOLDER RESPONSIBILITIES C.8.e Packet Pg. 223 At t a c h m e n t : 2 7 . 3 . 0 8 _ C a l - C a r d C r e d i t C a r d P o l i c y ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) City of Grand Terrace Fiscal Policy Policy No. 3.08 Subject: Cal-Card Credit Card Policy Approval Date: 10/25/2022 Page 4 of 6 1. Sign your card in the signature panel. 2. Maintain card security to prevent unauthorized charges against your account. 3. Obtain a receipt at the point of purchase and verify it for accuracy. 4. Indicate the appropriate departmental account number and description for each transaction. 5. Submit receipts to the Finance Department within five (5) days of purchase. 6. Notify the Finance Department immediately to report lost or stolen cards. 7. Notify the Finance Department of any billing discrepancies posted on your Cardholder Statement that cannot be resolved with the merchant. 8. Do not allow any member of your staff, family or supervisor to use this card. You, alone, are authorized to use this card. It may not be delegated. It has been especially designed to prevent you from confusing it with your personal credit cards. The card is to be used for City business and may not be used for personal purchases. VIOLATIONS IN ANY OF THE ABOVE AREAS ARE GROUNDS FOR REVOCATION OF ALL CAL-CARD PRIVILEGES AND APPROPRIATE DISCIPLINE. 9. Comply with all City of Grand Terrace Purchasing Policies. VII. PROCEDURES A. The cardholder will be notified by Finance when your credit card has been received. B. The cardholder will be required to sign the appropriate forms in order to receive your card (Attachment 1 and 2). C. The cardholder may use the credit card at any merchant which accepts VISA cards for payment of purchases. D. Upon presentation of one’s Cal-Card for the payment for purchases, a vendor should complete a sales draft including the following: 1. Card number (typically the last 4 digits), expiration Date and cardholder’s name. 2. Date and amount of purchase. 3. Description of item(s) being purchased. 4. Merchant name and identification. C.8.e Packet Pg. 224 At t a c h m e n t : 2 7 . 3 . 0 8 _ C a l - C a r d C r e d i t C a r d P o l i c y ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) City of Grand Terrace Fiscal Policy Policy No. 3.08 Subject: Cal-Card Credit Card Policy Approval Date: 10/25/2022 Page 5 of 6 E. Before you sign the sales draft, verify that the amount is correct. A little extra attention at this point could save you hours of dispute resolution later. F. For internet purchases print a copy of the purchase confirmation, code the confirmation page with the correct general ledger coding and send to the Accounts Payable for reconciling to the monthly statement. If you place an order through the mail, maintain a copy of your order form. Attach the order form and sales receipt, if available. Always verify that you are ordering from a secure, encrypted site when making internet based purchases. You will usually see a picture of a lock as confirmation that the site is secured. G. When placing a telephone or mail order, you will be asked to provide your name, card number, the expiration date on the card, and an address. Do not use your card for purchases by solicitation from unknown sources Always make sure you are dealing with reputable suppliers. H. Ensure a description of the item(s) purchased and the account to code the charges to, is written on the receipt then give the receipt to the Finance Department. I. If the cardholder returns an item purchased, he/she shall provide a credit voucher to the Finance Department. J. At the end of the billing cycle, the Finance Department will reconcile the receipts to each cardholder statement. If any receipts are missing the cardholder will be notified to provide those receipts to the Finance Department. K. If a cardholder has lost or damaged a receipt, a form (Attachment 3) must be filled out and signed by their Department Head. Missing receipts should definitely be the rare exception, not the rule. L. Personal (non-City related) charges, even if accidental, may be grounds for immediate revocation of one’s Cal-Card and could result in disciplinary action. Any personal charges must be reimbursed to the City and a copy of the receipt sent to the Finance Department, accompanied by a memorandum explaining the circumstances. VIII. LOST OR STOLEN CARDS A. If a card is lost or stolen, the cardholder must notify the Finance Department immediately. Finance must notify I.M.PA.C Card Service within 24 hours to limit cardholder liability. C.8.e Packet Pg. 225 At t a c h m e n t : 2 7 . 3 . 0 8 _ C a l - C a r d C r e d i t C a r d P o l i c y ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) City of Grand Terrace Fiscal Policy Policy No. 3.08 Subject: Cal-Card Credit Card Policy Approval Date: 10/25/2022 Page 6 of 6 B. If the card is stolen the cardholder shall immediately report such to the local police agency where the card was thought to be stolen. C. If you believe your account number has been compromised in any way, please notify the Finance Department immediately. D. A new card will be mailed to the Finance Department within (2) business days from the time the Finance Department reported the loss or theft to the Card Service Company. A new account number will be assigned to the Cardholder. IX. DEPARTURE OF EMPLOYEE A. Cal-Cards are issued to individual employees. If an employee leaves employment with the City his/her card must be retrieved and forwarded to the Finance Department. If a cardholder is transferred to another department, return the card to the Finance Department, who will contact the new department to determine if the employee is to receive a credit card. If it is determined that the card should be kept, the file can be changed by the Finance Department via U.S. Bank’s online system. X. CAL-Card and City Travel A. An advantage of the Cal-Card is that it provides a simple, expedient method for paying for lodging, airline tickets, seminar, workshop and/or conference registrations and parking while traveling. While these purchases are allowable, the card user bears the responsibility of knowing and following the City’s travel policy. C.8.e Packet Pg. 226 At t a c h m e n t : 2 7 . 3 . 0 8 _ C a l - C a r d C r e d i t C a r d P o l i c y ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) Please review the terms stated below and sign: Attachment 1 I have read the City of Grand Terrace Cal-Card Policy & Procedures, and agree to abide by the procedures contained therein. I agree to use this card only for actual and necessary Grand Terrace City-related business expenses incurred by me in carrying out my job responsibilities and in accordance with the City of Grand Terrace Cal-Card Procedures. I acknowledge that use of this VISA card for any purpose other than City approved business expenses is prohibited and may be grounds for disciplinary action, up to and including termination. In addition, I must reimburse the City of Grand Terrace for any unauthorized charges. I agree to surrender the card immediately upon retirement, termination, or upon request of an authorized representative of the City of Grand Terrace Finance Department. I understand that use of the card after privileges are withdrawn is prohibited. If the card is lost or stolen, I will immediately notify the issuing bank (IMPAC Card Services) by telephone at the number shown below. I understand that failure to promptly notify the issuing bank of the theft, loss, or misplacement of the VISA card could make me responsible for any fraudulent use of the card. BANK CONTACT: IMPAC Card Services P.O. Box 6346 Fargo, ND 58125-6346 (800) 227-6736 (701) 293-2759 Fax Cardholder Department Signature Division Date Phone Number Copy: Approving Official Cardholder Human Resources Cal-Card Cardholder Agreement Form CAL-CARD Cardholder Agreement C.8.e Packet Pg. 227 At t a c h m e n t : 2 7 . 3 . 0 8 _ C a l - C a r d C r e d i t C a r d P o l i c y ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) Attachment 2 CAL-CARD Certification and Receipt of Card Card Number Single Transaction Limit $ 30 Day Limit per Card $ Merchant Activity Code I certify that I have received a copy of the City of Grand Terrace Cal-Card Policy & Procedures and Card as indicated below. I understand that I am limited to the dollar amounts listed herein when using this card. I understand the restrictions of the use of this card. I ACCEPT RESPONSIBILITY THAT PURCHASES MADE WITH THIS CARD ARE ONLY FOR OFFICIAL BUSINESS FOR THE CITY OF GRAND TERRACE. Print Name Date Card was Received Signature Department Division Copy: Employee Approving Official Purchasing Office Cal-Card Certification of Receipt of Card Form C.8.e Packet Pg. 228 At t a c h m e n t : 2 7 . 3 . 0 8 _ C a l - C a r d C r e d i t C a r d P o l i c y ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) Attachment 3 CAL-CARD Missing Receipt It is the Cardholder’s responsibility to obtain a receipt/invoice from the vendors. In the absence of a receipt, this form, in its entirety, shall be completed pursuant to Section VII.K of the Cal-Card Policy & Procedures. Vendor Name Date of Purchase/ Service Quantity Purchased Dollar Amount $ Description of Purchase Steps Taken to Obtain Duplicate Copy of Receipt Circumstances in Detail for the Missing Receipt Cardholder’s Name Date Cardholder’s Signature Department Head’s Signature Date Cal-Card Missing Receipt Form C.8.e Packet Pg. 229 At t a c h m e n t : 2 7 . 3 . 0 8 _ C a l - C a r d C r e d i t C a r d P o l i c y ( C a l - C a r d C r e d i t C a r d P o l i c y I m p l e m e n t a t i o n ) AGENDA REPORT MEETING DATE: November 8, 2022 Council Item TITLE: An Ordinance Amending Title 15 (Buildings and Construction) of the Grand Terrace Municipal Code to Adopt by Reference the 2022 California Building Codes, 2021 International Property Maintenance Code, and 1997 Uniform Code for Abatement of Dangerous Buildings (As Amended Due to Local Climatic, Geological, Topographical Conditions) and Determining Such Ordinance Exempt from CEQA Pursuant to CEQA Guidelines Section 15061(B)(3) PRESENTED BY: Luis Gardea, Building Official RECOMMENDATION: 1) Conduct a public hearing; and 2) Direct the City Attorney to Read the Title of, Waive Further Reading of, and Introduce AN ORDINANCE OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING TITLE 15 OF THE GRAND TERRACE MUNICIPAL CODE THEREBY ADOPTING BY REFERENCE THE 2022 CALIFORNIA BUILDING CODE SERIES, INCLUDING THE 2022 CALIFORNIA BUILDING CODE, 2022 CALIFORNIA EXISTING BUILDING CODE, 2022 CALIFORNIA RESIDENTIAL CODE, 2022 CALIFORNIA ELECTRICAL CODE, 2022 CALIFORNIA PLUMBING CODE, 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE, 2022 CALIFORNIA HISTORICAL BUILDING CODE, 2022 CALIFORNIA MECHANICAL CODE, 2021 INTERNATIONAL PROPERTY MAINTENANCE CODE, AND 1997 UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS; MAKING CERTAIN AMENDMENTS TO SUCH CODES (AS APPLICABLE) DUE TO LOCAL CLIMATIC, GEOLOGICAL, AND/OR TOPOGRAPHICAL CONDITIONS; AND DETERMINING THEREOF TO BE EXEMPT FROM CEQA PURSUANT TO CEQA GUIDELINES SECTION 15061(B)(3) 2030 VISION STATEMENT: This item supports Goal #4 to Develop and Implement Successful Partnerships by preparing for growth by updating the City’s development codes including the California Building Code. E.9 Packet Pg. 230 BACKGROUND: The City of Grand Terrace currently enforces the 2019 California Building Codes in their entirety. The City of Grand Terrace has always adopted a set of building standards known as the Uniform Building Code (UBC) which are now currently known as the California Building Code (CBC). Every three years the California Building Standards Commission (CBSC) publishes new editions of the CBC with updates to the California Building Code as recommended by the International Code Council (ICC) and amended by the California Building Standards Commission. DISCUSSION: Staff requests that a public hearing take place with the City Council to discuss adoption of the 2022 California Building Codes in their entirety and as amended by the City of Grand Terrace Code of Ordinances. The Building Division also recommends the adoption by reference of the 2021 International Property Maintenance Code as published by the International Code Council. The Property Maintenance Code will regulate and control the minimum requirements and standards for premises, structures, equipment and facilities for light, ventilation, space, heating, sanitation, protection from the elements, a reasonable level of safety from fire and other hazards, and for a reasonable level of sanitary maintenance for all residential and nonresidential structures. The Building Division further recommends the adoption by reference of the 1997 Uniform Code For The Abatement of Dangerous Buildings as published by the International Conference of Building Officials. This code will regulate and control buildings or structures which from any cause endanger the life, limb, health, morals, property, safety or welfare of the general public or their occupants. The City of Grand Terrace has certain local climatic, geological, and topographical conditions which require amendments to the 2022 California Building Codes (as applicable). In short, the local climatic, geological, and topographical conditions are as follows: the City is geographically located in the inland region of Southern California located in Climate Zone 10, prone to wind gusts of up to 95 MPH, Category C and in earthquake Seismic Zone D. In addition, there are sections of the city that are considered high flood areas and contain very high fire hazard severity zones. Due to the local climatic, geological, and topographical conditions noted above, it is in the best interest of the City to amend the existing codes, as provided herein, and adopt the 2022 California Building Codes along with an amendment to the Municipal Code of Ordinances. Based upon the forgoing, the Building Division recommends the following amendments (included as part of the Municipal Code changes) to the 2022 California Building Codes (as applicable) to include the requirement of fire sprinklers under the following categories: E.9 Packet Pg. 231 - All new residential and non-residential buildings regardless of total building area. - All new residential and non-residential buildings containing the following occupancies: A-1, A-2, A-3, A-4, A-5, B, E, F-1, F-2, H-1, H-2, H-3, H-4, H-5, I-1, I-2, I-3, I-4, M, R-1, R-2, R-3, R-4, S-1, S-2, and L regardless of total building area. - All new residential and non-residential buildings containing the following occupancies: Group U, more specifically Agricultural buildings, Aircraft hangars that are accessory to a one-or two-family residence, Barns built under building type IV and V construction that exceed 200 square feet, Carports built under building type IV and V construction that exceed 200 square feet, Communication equipment structures, Grain silos accessory to a residential occupancy, Livestock shelters, Private garages that exceed 200 square feet, and Stables built under building type IV and V construction that exceed 200 square feet. - All new accessory buildings that serve as an accessory structure to a non- residential and residential building under type IV and V construction that exceed 200 square feet in total building area. - Existing residential and non-residential buildings undergoing through a remodel of at least 50% in total building area containing all occupancy types. The Building Division also recommends an amendment to the Municipal Code of ordinances to reinforce the life safety standards of the CBC as provided in the attached proposed ordinance. Specific language of the amendments to the Municipal Code for life safety are found in the attachments section of this staff agenda. ENVIRONMENTAL REVIEW: The adoption of the Proposed Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) as a project that has no potential for causing a significant effect on the environment. PUBLIC NOTICE: Public notice of this meeting for participation and attendance of this hearing was provided online via the city’s website and published in the local newspaper, City News Group. ECONOMIC IMPACT: Adoption of the proposed code ordinances will significantly save residents and businesses hundreds of thousands of dollars in monetary loss caused by a fire including any associated indirect costs caused by such incident. SAFETY IMPACT: E.9 Packet Pg. 232 The proposed ordinance will significantly increase life safety and will save many lives by preventing fires in occupied buildings. RECOMMENDATION: Based upon the forgoing, Staff therefore recommends that the City Council (1) conduct a public hearing, (2) at the conclusion of the public hearing, direct the City Attorney to read the title of, waive further reading of, and introduce the attached proposed ordinance, which adopts by reference the 2022 California Building Codes, the 2021 International Property Maintenance Code, the 1997 Uniform Code For The Abatement of Dangerous Buildings, and, further, makes such changes to those codes (as applicable) due to local climatic, geological, and topographical conditions and finds the Ordinance exempt from CEQA pursuant to Section 15061(b)(3), and (3) set a public hearing on December 13, 2022 at 6:00 PM in the City Council Chambers at Grand Terrace City Hall, 22795 Barton Road, Grand Terrace, California in order to consider the second reading and adoption of the above-mentioned ordinance. ATTACHMENTS: • Very High Fire Hazard Severity Zones - Grand Terrace (PDF) • Code of Ordinance Amendments (2022 CA Building Codes) (DOCX) • PC Executed Resolution_2022 CA Building Codes (PDF) APPROVALS: Luis Gardea Completed 10/28/2022 2:43 PM City Attorney Completed 11/01/2022 11:23 AM City Manager Completed 11/02/2022 3:05 PM City Council Pending 11/08/2022 6:00 PM E.9 Packet Pg. 233 Grand Terrace The State of California and the Department of Forestry and Fire Protection make no representations or warranties regarding the accuracy of data or maps. Neither the State nor the Department shall be liable under any circumstances for any direct, special, incidental, or consequential damages with respect to any claim by any user or third party on account of, or arising from, the use of data or maps. Obtain FRAP maps, data, metadata and publications on the Internet at http://frap.cdf.ca.govFor more information, contact CAL FIRE-FRAP, PO Box 944246, Sacramento, CA 94244-2460, (916) 327-3939. Arnold Schwarzenegger, Governor, State of CaliforniaMike Chrisman, Secretary for Resources,The Resources AgencyRuben Grijalva, Director,Department of Forestry and Fire Protection Government Code 51175-89 directs the California Department of Forestry and Fire Protection (CAL FIRE) to identifyareas of very high fire hazard severity zones within Local Responsibility Areas (LRA). Mapping of the areas, referredto as Very High Fire Hazard Severity Zones (VHFHSZ), is based on data and models of, potential fuels over a 30-50year time horizon and their associated expected fire behavior, and expected burn probabilities to quantify the likelihoodand nature of vegetation fire exposure (including firebrands) to buildings. Details on the project and specific modelingmethodology can be found at http://frap.cdf.ca.gov/projects/hazard/methods.htm. Local Responsibility Area VHFHSZmaps were initially developed in the mid-1990s and are now being updated based on improved science,mapping techniques, and data. In late 2005 to be effective in 2008, the California Building Commission adopted California Building Code Chapter 7Arequiring new buildings in VH FHSZs to use ignition resistant construction methods and materials. These new codesinclude provisions to improve the ignition resistance of buildings, especially from firebrands. The updated very high firehazard severity zones will be used by building officials for new building permits in LRA. The updated zones will also beused to identify property whose owners must comply with natural hazards disclosure requirements at time of propertysale and 100 foot defensible space clearance. It is likely that the fire hazard severity zones will be used for updates tothe safety element of general plans. This specific map is based on a geographic information system dataset that depicts final CAL FIRE recommendationsfor Very High FHSZs within the local jurisdiction. The process of finalizing these boundaries involved an extensive localreview process, the details of which are available at http://frap.cdf.ca.gov/projects/hazard/btnet/ (click on "Continueas guest without logging in"). Local government has 120 days to designate, by ordinance, very high fire hazard severityzones within its jurisdiction after receiving the recommendation. Local government can add additional VHFHSZs.There is no requirement for local government to report their final action to CAL FIRE when the recommended zones areadopted. Consequently, users are directed to the appropriate local entity (county, city, fire department, or FireProtection District) to determine the status of the local fire hazard severity zone ordinance. Very High Fire Hazard Severity Zones in LRAAs Recommended by CAL FIRE Projection Albers, NAD 1983Scale 1: 12,000at 36" x 36"October 29, 2008 ©0 2Miles 0 3Kilometers This map was developed using data products such as parcel and city boundaries provided by local government agencies. In certain cases, this includes copyrighted geographic information.The maps are for display purposes only - questions and requests related to parcel or city boundary data should be directed to the appropriate local government entity. DATA SOURCESCAL FIRE Fire Hazard Severity Zones (FHSZL06_3) MAP ID: FHSZL_c36_GrandTerrace Fire Hazard Severity Zones County Boundary Parcels City Boundary Local Responsibility Area State or Federal Responsibility Areas VHFHSZ Non-VHFHSZ VHFHSZ Non-VHFHSZ E.9.a Packet Pg. 234 At t a c h m e n t : V e r y H i g h F i r e H a z a r d S e v e r i t y Z o n e s - G r a n d T e r r a c e ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 ORDINANCE NO. XXX AN ORDINANCE OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING TITLE 15 OF THE GRAND TERRACE MUNICIPAL CODE THEREBY ADOPTING BY REFERENCE THE 2022 CALIFORNIA BUILDING CODE SERIES, INCLUDING THE 2022 CALIFORNIA BUILDING CODE, 2022 CALIFORNIA EXISTING BUILDING CODE, 2022 CALIFORNIA RESIDENTIAL CODE, 2022 CALIFORNIA ELECTRICAL CODE, 2022 CALIFORNIA PLUMBING CODE, 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE, 2022 CALIFORNIA HISTORICAL BUILDING CODE, 2022 CALIFORNIA MECHANICAL CODE, 2021 INTERNATIONAL PROPERTY MAINTENANCE CODE, AND 1997 UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS; MAKING CERTAIN AMENDMENTS TO SUCH CODES (AS APPLICABLE) DUE TO LOCAL CLIMATIC, GEOLOGICAL, AND/OR TOPOGRAPHICAL CONDITIONS; AND DETERMINING THEREOF TO BE EXEMPT FROM CEQA PURSUANT TO CEQA GUIDELINES SECTION 15061(B)(3) WHEREAS, California Health and Safety Code Section 17950 requires that the California Building Standards Commission adopt and publish the California Code of Regulations, Title 24; and WHEREAS, every three years, California Code of Regulations, Title 24 is published to incorporate all code changes accepted by a majority vote of members at the annual code development meetings of the California Building Standards Commission. WHEREAS, new codes will become effective statewide on January 1, 2023; and WHEREAS, each jurisdiction in the State is mandated to adopt California Code of Regulations, Title 24 and make amendments to the codes that are reasonably necessary because of local climatic, geological or topographical conditions; and WHEREAS, the 2021 International Property Maintenance Code is a code that provides standards for the maintenance of property, but has not been adopted by the City; and WHEREAS, the 1997 Uniform Code for the Abatement of Dangerous Buildings is a code that provides standards for the abatement of dangerous buildings, but has not been adopted by the City; and WHEREAS, certain amendments to the codes are therefore reasonably necessary due to the following local climatic, geological, and topographical conditions in the City: The City of Grand Terrace, a California Municipal Corporation, is geographically located in the inland region of Southern California located in Climate Zone 10, prone to wind gusts of up to 95 MPH, Category C and in earthquake Seismic Zone D. In addition, there are sections of the city that are considered high flood areas and contain very high E.9.b Packet Pg. 235 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 fire hazard severity zones. Due to the local climatic, geological, and topographical conditions noted above, it is in the best interest of the City to amend the existing codes, as provided herein, and adopt the 2022 California Building Codes along with an amendment to the Municipal Code of Ordinances. WHEREAS, the City Council of the City of Grand Terrace now desires to adopt by reference the new state building codes that will become effective statewide on January 1, 2023, with certain amendments addressing the above-mentioned local climatic, geological, and topographical conditions in the City; the 2021 International Property Maintenance Code; and 1997 Uniform Code for the Abatement of Dangerous Buildings; and WHEREAS, a duly noticed public hearing, as required by California Government Code section 50022.3, was conducted prior to the adoption of this ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. RECITALS. The recitals set forth above are incorporated herein by this reference. SECTION 2. CEQA. The adoption of this Ordinance is hereby determined to be exempt from the California Environmental Quality Act pursuant to State Guidelines Section 15061(b)(3) as a project that has no potential for causing a significant effect on the environment. SECTION 3. BUILDING CODE. Chapter 15.08 (Building Code) of Title 15 (Buildings and Construction) is hereby amended in its entirety to read as follows. 15.08.010. – Adoption For the purpose of prescribing regulations for erecting, construction, enlargement, alteration, repair, improving, removal, conversion, demolition, occupancy, equipment use, height, and area of buildings and structures, the following construction codes subject to the modifications set forth in this chapter, are hereby adopted by reference: the 2022 California Building Code, Volumes 1 and 2, including Appendix Chapter “C”, “F”, “G”, “I”, “J”, “L”, “N” and “O” based on the 2021 International Building Code as published by the International Code Council. One copy of all the above codes and standards therefore are on file in the Office of the City Clerk and are made available for public inspection. Section 15.08.020 – Fences and High Fire Hazard Severity Zones The changes set forth herein are made to the 2022 Edition of the California Building Code Volume 1 & 2 as published by the International Code Council. A. Section 105.2 item 2 is amended to read as follows: E.9.b Packet Pg. 236 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 1. Fences not over 6 feet in height. B. The requirements of Chapter 7A shall apply throughout the City’s designated High Fire Hazard Severity Zones as designated by CAL FIRE’s Fire Hazard Severity Zone Map and City Council. Section 15.08.030 – Automatic Fire Sprinklers Automatic fire sprinklers shall be required for all newly constructed non- residential and residential buildings regardless of total building area and existing non-residential and residential buildings undergoing remodeling of at least 50% in total existing building area. Section 15.08.040 – Separation from Main Dwelling or Existing Structures. All buildings including but not limited to dwellings, accessory structures, accessory dwelling units, or other similar structures shall be at a minimum five feet away from the main dwelling or from other existing structures. This provision does not apply to attached patio covers, attached garages, or attached accessory dwelling units. Section 15.08.050 – Newly Constructed Building; Wireless Access Point. All newly constructed buildings shall have an easily accessible wireless access point. Section 15.08.060 – Amendment to Section 903.2.1.1 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.1.1 of the California Building Code is hereby amended to read as follows. Group A-1. Remove “where one of the following conditions exists. Sections 1-4”. Section 15.08.070 – Amendment to Section 903.2.1.2 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.1.2 of the California Building Code is hereby amended to read as follows. E.9.b Packet Pg. 237 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 Group A-2. Remove “where one of the following conditions exists. Sections 1-4”. Section 15.08.080 – Amendment to Section 903.2.1.3 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.1.3 of the California Building Code is hereby amended to read as follows. Group A-3. Remove “where one of the following conditions exists. Sections 1-4:” Section 15.08.090 – Amendment to Section 903.2.1.4 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.1.4 of the California Building Code is hereby amended to read as follows. Group A-4. Remove “where one of the following conditions exists. Section 1-3”. Section 15.08.110 – Amendment to Section 903.2.1.5 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.1.5 of the California Building Code is hereby amended to read as follows. Group A-5. Remove “in excess of 1,000 square feet (93 m2)”. Section 15.08.120 – Amendment to Section 903.2.5.1 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.1.5.1 of the California Building Code is hereby amended to read as follows: Group A-5. Spaces under grandstands or bleachers. Remove “where either of the following exist: Sections 1-2”. E.9.b Packet Pg. 238 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 Section 15.08.130 – Amendment to Section 903.2.1.6 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.1.6 of the California Building Code is hereby amended to read as follows: Assembly occupancies on roofs. “Where an occupied roof has a Group A assembly occupancy, all floors between the occupied roof and the level of exist discharge shall be equipped with an automatic sprinkler system in accordance with Section 903.3.1.1 or 903.3.1.2. Section 15.08.140 – Amendment to Section 903.2.1.7 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.1.7 of the California Building Code is hereby amended to read as follows: Multiple fire areas. “An automatic sprinkler system shall be provided where multiple fire areas of Group A-1, A-2, A-3, or A-4 occupancies share exit or exit access components”. Remove “and the combined occupant load of these fire areas is 300 or more”. Section 15.08.150 – Amendment to Section 903.2.2 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.2 of the California Building Code is hereby amended to read as follows: Ambulatory Care Facilities. Remove “where either of the following conditions exist at any time: Items 1-2”. Section 15.08.160 – Amendment to Section 903.2.3 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.3 of the California Building Code is hereby amended to read as follows: E.9.b Packet Pg. 239 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 Group E. Remove “as follows” Items 1-7”. Section 15.08.170 – Amendment to Section 903.2.4 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.4 Group F-1 of the California Building Code is hereby amended to read as follows: Group F-1. Remove “where one of the following conditions exists: Items 1-4”. Section 15.08.180 – Amendment to Section 903.2.4.1 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.4.1 of the California Building Code is hereby amended to read as follows: Woodworking Operations. Remove “in excess of 2,500 square feet (232 m2) in area that generate finely divided combustible waste or use finely divided combustible materials”. Section 15.08.190 – Amendment to Section 903.2.7 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.7 of the California Building Code is hereby amended to read as follows: Group M. Remove “where one of the following conditions exists: Items 1-5”. Section 15.08.200 – Amendment to Section 903.2.9 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.9 of the California Building Code is hereby amended to read as follows: Group S-1. Remove “where one of the following conditions exists: E.9.b Packet Pg. 240 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 Items 1-5”. Section 15.08.210 – Amendment to Section 903.2.9.1 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.9.1 of the California Building Code is hereby amended to read as follows: Repair Garages. Remove “as shown: Items 1-4”. Section 15.08.220 – Amendments to Section 903.2.9.2 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.9.2 of the California Building Code is hereby amended to read as follows: Bulk storage of tires. “Buildings and structures with the storage of tires shall be equipped throughout with an automatic sprinkler system in accordance with Section 903.3.1.1”. Section 15.08.230 – Amendments to Section 903.2.10 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.10 of the California Building Code is hereby amended to read as follows: Group S-2. Enclosed parking garages. Remove “where either of the following conditions exists: Items 1-2”. Section 15.08.240 – Amendments to Section 903.2.10.1 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.10.1 of the California Building Code is hereby amended to read as follows: Commercial Parking Garages. Remove “where the fire area exceeds 5,000 square feet (464 m2).” E.9.b Packet Pg. 241 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 Section 15.08.250 – Amendment to Section 903.2.11 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.11 of the California Building Code is hereby amended to read as follows: Specific building areas and hazards. Remove “in the locations set forth in Sections 903.211.1 through 903.2.11.6”. Section 15.08.260 – Amendment to Section 903.2.11 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.11 of the California Building Code is hereby amended to read as follows: Specific building areas and hazards. “In all occupancies other than Group U, an automatic sprinkler system shall be installed for building design or hazards.” Section 15.08.270 – Amendment to Section 903.2.16 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.16 of the California Building Code is hereby amended to read as follows: Group L occupancies. “An automatic sprinkler system shall be installed throughout buildings housing Group L occupancies”. Section 15.08.280 – Amendment to Section 903.2.18 of the California Building Code. The changes set forth herein are made to the 2022 California Building Code as published by the International Code Council. A. Section 903.2.18 of the California Building Code is hereby amended to read as follows: Group U. Private garages and carports accessory to Group R-3 occupancies. “Exception: An automatic residential fire sprinkler E.9.b Packet Pg. 242 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 system shall not be required when additions or alterations are made to existing carports and/or garages that are not at least 50% remodeled or altered of the existing total building area.” Section 15.08.290 – Automatic Fire Sprinklers; New Residential and Non-Residential Buildings. All new residential and non-residential buildings containing the following occupancies: A-1, A-2, A-3, A-4, A-5, B, E, F-1, F-2, H-1, H-2, H-3, H-4, H- 5, I-1, I-2, I-3, I-4, M, R-1, R-2, R-3, R-4, S-1, S-2, and L shall have an automatic fire sprinkler system installed regardless of total building area. Section 15.08.300 – Automatic Fire Sprinklers; Group U. All new residential and non-residential buildings containing the following occupancies: Group U, more specifically Agricultural buildings, Aircraft hangars that are accessory to a one- or two-family residence, Barns built under building type IV and V construction that exceed 200 square feet, Carports built under building type IV and V construction that exceed 200 square feet, Communication equipment structures, Grain silos accessory to a residential occupancy, Livestock shelters, Private garages that exceed 200 square feet, and Stables built under building type IV and V construction that exceed 200 square feet shall require an automatic fire sprinkler system. Section 15.08.310 – Automatic Fire Sprinklers; Accessory Structures. All new accessory buildings that serve as an accessory structure to a non- residential and residential building under type IV and V construction that exceeds 200 square feet in total building area shall require an automatic fire sprinkler system. SECTION 4. EXISTING BUILDING CODE. Section 15.09.010 (Adoption) of Chapter 15.09 (Existing Building Code) of Title 15 (Buildings and Construction) is hereby amended to read as follows: Except as provided in this Chapter, those certain building codes known and designated as the 2022 California Existing Building Code, California Code of Regulations, Title 24, Part 10, based on the 2021 International Existing Building as published by the International Code Council are hereby adopted by reference and shall become the existing building code of the City for regulating the construction, alteration, movement, enlargement, replacement, repair, equipment, use, occupancy, location, maintenance, removal and demolition of every building or structure or any appurtenances connected or attached to such buildings or structures throughout the City. One copy of all the above codes and standards therefore are on file in the Office of the City Clerk and are made available for public inspection. SECTION 5. RESIDENTIAL CODE. Chapter 15.10 (Residential Code) of Title 15 E.9.b Packet Pg. 243 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 (Buildings and Construction) is hereby amended in its entirety to read as follows: Section 15.10.010 – Adoption Except as provided in this Chapter, those certain building codes known and designated as the 2022 California Residential Code based on the 2021 International Residential Code published by the International Code Council are hereby adopted by reference and shall become the residential building code of the City for regulating the construction, occupancy, equipment, use, height, area and maintenance of all residential buildings and/or structures in the City. One copy of all the above codes and standards therefore are on file in the Office of the City Clerk and are made available for public inspection. Section 15.10.020 – Automatic Fire Sprinklers. Automatic fire sprinklers shall be required for all newly constructed residential buildings regardless of total building area and existing residential buildings undergoing remodeling of at least 50% in total existing building area. Section 15.10.030 – Exterior Lights. Exterior lights are required to be placed next to exterior doorways leading into residential dwellings or where there is an exterior landing or where there are stairs. Lights shall be placed when a building is being altered, remodeled, enlarged of at least 50% in total building area or where there is a change of occupancy. Section 15.10.040 – Ground Level Bathrooms; Wood Blocking Support. Residential buildings with ground level bathrooms of two-stories in height that are being altered, remodeled, enlarged, or similar thereof shall have wood blocking support behind shower walls, bathtub area walls, and water closet areas for future installation of grab bars and safety hardware. Section 15.10.050 – Automatic Humidity Control Switch Sensor. Residential buildings with bathrooms that are being altered, remodeled, enlarged, or similar thereof shall have mechanical ventilation that is automatically activated by a humidity control switch sensor. Section 15.10.060 – Amendment to Section R319.1. The changes set forth herein are made to the 2022 California Residential Code as published by the International Code Council. E.9.b Packet Pg. 244 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 A. Section R319.1 is amended to read as follows. 1. “New residential buildings and remodels where at least 50% of the existing building area is being altered shall have backlit addressing”. Section 15.10.070 – Attached Garages. All residential buildings containing attached garages that are considered new or existing and are altered, enlarged, erected, or similar thereof shall have an insulated garage door. This provision applies to any as-built unpermitted garages that have been issued an after the fact permit legalizing the garage. Section 15.10.080 – Interior Transitions. Interior transitions shall either be a full step (7 ¾”) (196 mm) and changes in level between shower thresholds shall be ¼” high minimum and ½” high maximum are beveled with a slope not steeper than 1:2. Section 15.10.090 – Amendment to Section R313.1. The changes set forth herein are made to the 2022 California Residential Code as published by the International Code Council. A. Section R313.1 of the California Residential Code is hereby amended to read as follows: Townhouse automatic fire sprinkler systems. “Exception: An automatic residential fire sprinkler system shall not be required where additions or alterations are less than 50% of the total existing building area. Section 15.10.100 – Dedicated Water Meter for Fire Sprinkler Systems All new construction including residential and nonresidential buildings equipped with fire sprinkler systems shall have a separate dedicated water meter that will serve fire protection systems. SECTION 6. Section 15.12.010 (Adoption) of Chapter 15.12 (Electrical Code) of Title 15 (Buildings and Construction) is hereby amended to read as follows: Except as provided in this Chapter, the 2022 California Electrical Code based on the 2020 National Electrical Code as published by the National Fire Protection Association, is hereby adopted by reference and shall become the electrical code of the City, regulating all installations, arrangement, alteration, repair, use and other operation of electrical wiring, connections, fixtures and other electrical appliances on premises within the E.9.b Packet Pg. 245 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 City. One copy of all the above codes and standards therefore are on file in the Office of the City Clerk and are made available for public inspection SECTION 7. PLUMBING CODE. Section 15.16.010 (Adoption) of Chapter 15.16 (Plumbing Code) of Title 15 (Buildings and Construction) is hereby amended to read as follows: Except as provided in this Chapter, the 2022 California Plumbing Code based on the 2021 Uniform Plumbing Code as published by the International Association of Plumbing and Mechanical Officials, is hereby adopted by reference and shall become the plumbing code of the City, regulating construction, installation, alteration, repair, relocation, replacement, maintenance or use of plumbing systems within the City. One copy of all the above codes and standards therefore are on file in the Office of the City Clerk and are made available for public inspection. SECTION 8. GREEN BUILDING STANDARDS. Section 15.17.010 (Adoption) of Chapter 15.17 (Green Building Standards) of Title 15 (Buildings and Construction) is hereby amended to read as follows: Except as provided in this Chapter, the 2022 Green Building Standards Code is hereby adopted by reference and shall become the green building standards of the City. The provisions of this Code shall apply to the planning, design, operation, construction, use and occupancy of every newly constructed building or structure. One copy of all the above codes and standards therefore are on file in the Office of the City Clerk and are made available for public inspection. SECTION 9. HISTORICAL BUILDING CODE. Section 15.19.010 (Adoption) of Chapter 15.19 (Historical Building Code) of Title 15 (Buildings and Construction) is hereby amended to read as follows: Except as provided in this Chapter, those certain building codes known and designed as the 2022 California Historical Building Code are hereby adopted by reference and shall become the historical building code of the City for regulating the preservation, restoration, rehabilitation, relocation or reconstruction of buildings or properties designated as qualified historical buildings or properties located in the City. One copy of all the above codes and standards therefore are on file in the Office of the City Clerk and are made available for public inspection. SECTION 10. MECHANICAL CODE. Section 15.20.010 (Adoption) of Chapter 15.19 (Mechanical Code) of Title 15 (Buildings and Construction) is hereby amended to read as follows: Except as provided in this Chapter, the 2022 California Mechanical Code based on the 2021 Uniform Mechanical Code as published by the International Association of Plumbing and Mechanical Officials, is hereby E.9.b Packet Pg. 246 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 adopted by reference and shall become the mechanical code of the City, regulating and controlling the design, construction, installation, quality of materials, location, operation, and maintenance of heating, ventilating, cooling, refrigeration system, incinerators and other miscellaneous heat producing appliances. One copy of all the above codes and standards therefore are on file in the Office of the City Clerk and are made available for public inspection. SECTION 11. PROPERTY MAINTENANCE CODE. Chapter 15.22 is hereby added to Title 15 (Buildings and Construction) as follows: Chapter 15.22 – Property Maintenance Code Section 15.22.010 – Adoption Except as provided in this Chapter, the 2021 International Property Maintenance Code as published by the International Code Council is hereby adopted by reference and shall become the property maintenance code of the City, regulating and controlling the minimum requirements and standards for premises, structures, equipment and facilities for light, ventilation, space, heating, sanitation, protection from the elements, a reasonable level of safety from fire and other hazards, and for a reasonable level of sanitary maintenance for all residential and nonresidential structures. One copy of all the above codes and standards therefore are on file in the Office of the City Clerk and are made available for public inspection. SECTION 12. UNIFORM ABATEMENT OF DANGEROUS BUILDINGS CODE. Chapter 15.23 is hereby added to Title 15 (Buildings and Construction) as follows: Chapter 15.23 – Abatement of Dangerous Buildings Code Section 15.23.010 – Adoption Except as provided in this Chapter, the 1997 Uniform Code For The Abatement of Dangerous Buildings as published by the International Conference of Building Officials is hereby adopted by reference and shall become the abatement of dangerous buildings code of the City, regulating and controlling buildings or structures which from any cause endanger the life, limb, health, morals, property, safety or welfare of the general public or their occupants. One copy of all the above codes and standards therefore are on file in the Office of the City Clerk and are made available for public inspection. SECTION 13. PENALTY PROVISIONS. All violations of Title 15 of the Grand Terrace Municipal Code shall be punishable pursuant to Chapter 15.04 of Title 15 of the Grand Terrace Municipal Code (“Chapter 15.04”) and as it may be amended from time to time. The current text of Chapter 15.04 as of the effective date of this Ordinance E.9.b Packet Pg. 247 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 is set forth in full in Exhibit “A” of this Ordinance and is incorporated herein by this reference. SECTION 14. INCONSISTENT PROVISIONS. 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 affect the provisions of this Ordinance. SECTION 15. SEVERABILITY. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance or any part thereof is for any reason held to be unconstitutional, such decision shall not affect this validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phase thereof, irrespective of the fact that any one or more sections, subsection, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional. SECTION 16. EFFECTIVE DATE. This ordinance shall be effective on the thirtieth (30th) day after the day of its adoption. SECTION 17. CERTIFICATION. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be posted in the manner required by law. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the ____ day of _______, 2022. _____________________________ Darcy McNaboe Mayor ATTEST: ____________________________ Debra Thomas City Clerk APPROVED AS TO FORM: ____________________________ Adrian R. Guerra City Attorney E.9.b Packet Pg. 248 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 EXHIBIT A Current Chapter 15.04 Chapter 15.04 GENERAL PROVISIONS FOR UNIFORM CODES 15.04.010 Applicability. The requirements of this Chapter are general in nature and apply to all the provisions in this Title. 15.04.020 Substitution of references. Whenever in any of the codes adopted in this Title there appears a reference to the following names or terms, those names or terms shall be deemed and construed as follows: A. "Administrative Authority," "Building Official," "Electrical Safety Engineer" or any other similar terms which makes reference to the individual official, board, department or agency created by law to administer and enforce the provisions of the code adopted in this Title shall mean the "Director of Building and Safety and his authorized assistants." B. "City of" or any similar reference to a political entity means the incorporated territory of the City. 15.04.030 Findings. The City Council finds that these regulations and provisions and those of the codes adopted in this Title are in compliance with Section 17922 of the Health and Safety Code of the State of California and that the modifications and changes herein made to the model codes adopted in this Chapter are necessary due to local conditions. A copy of the ordinance adopting this provision shall be forwarded to the Department of Housing and Community Development of the State of California by the City Clerk, and the copy will serve to satisfy the requirement of filing of findings as stated in Section 17958.7 of the Health and Safety Code of the State of California. 15.04.040 Permit fees. Any and all references to fees in any of the uniform codes adopted in this title are deleted; such fees shall be set by resolution of the city council. 15.04.050 Annual permits. A. Where any person, firm or corporation in the course of normal maintenance procedures proposes to install, alter or repair any electrical wiring, devices, appliances, plumbing, drainage systems, septic tanks, seepage pits, leaching lines, heating, ventilating, refrigeration or water conservation equipment in an existing facility located on property under the direct control of such person, firm or corporation and is able to, and does in fact, furnish inspection service which meets the requirements and rules and regulations of this code, and whose operations are under the continuous supervision of a professional engineer or engineers, duly registered with and licensed by the state of California, such person, firm or corporation shall not be required to obtain approval at each consecutive inspection step of the installation, alteration or repair but shall be E.9.b Packet Pg. 249 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 required only to obtain an annual permit or annual permits and assure that the work in progress is accessible to the director of building and safety for such periodic inspections as he may deem necessary. B. The fee for each separate annual permit (electrical, plumbing, mechanical) shall be based upon the number of employees doing work in the crafts covered in each annual permit in accordance with a resolution of the city council. C. The designated responsible supervising engineer shall file with the building and safety department a written report specifying the work done under the issued annual permit. Such written report shall be filed with the department of building and safety within thirty days following the end of the fiscal year for which the permit was issued. 15.04.060 Enforcement—Appeals. It shall be the duty of the director of building and safety to enforce the provisions of the Uniform Building Code, National Electrical Code, Uniform Mechanical Code, Uniform Plumbing Code and Uniform Solar Energy Code, respectively, and to determine the intent and meaning thereof. Any determination or decision, made by the director of building and safety, which is in dispute, is subject to review and final decision by the city council or by a board of appeals as established by Section 204 of the Uniform Building Code, 1979 Edition. (Ord. 1 § 1(part), 1978: county code § 63.085) 15.04.070 – Soil report. A. Subdivision maps shall not be given a final approval until a preliminary soil report, prepared by a civil engineer, registered by the state of California, has been filed with and approved by the director of building and safety. B. The preliminary soil report shall indicate the presence, if any, of expansive soils or any other soil problem which, if not corrected, would lead to structural defects. If defective soil conditions are indicated, the preliminary report shall include recommendations for corrective measures intended to prevent structural damage to buildings erected on the site. Acceptance and approval of these recommendations shall not preclude the consideration and approval of alternate methods of correction which may be submitted by any other California-registered civil engineer when accompanying a permit application for construction of a specific building or buildings. C. The preliminary soil report shall be based upon test borings or excavations. The number of borings or excavations shall be adequate to determine fully the extent and degree of soil problems, if any, which exist in the proposed subdivision; provided, however, that not less than three such borings or excavations shall be required for each report. If critically defective soil conditions are disclosed by initial borings or excavations, additional borings or excavations shall be made at the probable building location on each lot or parcel within the subdivision. Appropriate notations shall be made upon the subdivision map so as to indicate the location and type of defective soil noted in the preliminary report. D. The director of building and safety shall approve the preliminary soil report: 1. If no defective soils are present on the site; or 2. If the corrective measures recommended in the report would be likely to prevent structural damage to any buildings constructed on the site. E.9.b Packet Pg. 250 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 E. The preliminary soil report may be waived when the sole purpose of the subdivision map is to assemble small lots or parcels into larger lots or parcels to define, adjust or correct property lines of existing subdivisions. F. The issuance of a building permit for the construction of a building on a lot or parcel of land which has been found to have defective soils shall be conditioned to the incorporation of an approved corrective measure intended to prevent structural damage to the building. 15.04.080 – Water conservation. Water used as a coolant in any stationary equipment or machinery, or water utilized for heating or cooling in an industrial process, shall not be wasted but shall be recirculated and reused. Every evaporative cooler shall be equipped with a circulating pump. 15.04.090 – Deadline for on-site improvements. On-site improvements required by the terms of Title 18 must be completed or a cash deposit submitted and approved prior to occupancy or prior to connection of utilities. 15.04.100 – Work started without permit. Where work for which a permit is required by the codes adopted in this title is started or proceeded with prior to obtaining the permit, the specified fees shall be doubled, but the payment of such penalty fee shall not relieve any persons from fully complying with the requirements of these codes in the execution of the work nor from any other penalties prescribed in this code; provided, however, that this provision shall not apply to emergency work when it is proved to the satisfaction of the director of building and safety that such work was urgently necessary and that it was not practical to obtain a permit therefor before commencement of the work. In all such cases a permit must be obtained as soon as it is practical to do so, and if there is an unreasonable delay in obtaining such permit, a double fee as provided in this section shall be charged. Any section in any of the codes adopted in this title which is in conflict to this section is repealed. 15.04.110 – Interpretation of minimum requirements. In interpreting and applying the provisions of this title, its provisions shall be held to be the minimum requirements for the promotion of public health, safety and general welfare. 15.04.120 – Nuisance abatement. Any building or structure erected or maintained, or any use of property contrary to the provisions of this title is a public nuisance and the city attorney shall, upon order of the director of building and safety, immediately commence an action or actions, proceeding or proceedings, for the abatement, removal and enjoinment thereof in the manner provided by law and shall take such steps and shall apply to such court or courts as may have jurisdiction to grant such relief as will abate or remove such building, structure or use, and restrain and enjoin any person from erecting or maintaining such building or structure or using any property contrary to the provisions of this title. It shall be the right E.9.b Packet Pg. 251 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) 01247.0005/825853.4 and duty of every citizen to participate and assist the city officials in the enforcement of the provisions of this title. 15.04.130 – Remedies cumulative. All remedies provided for in this title shall be cumulative and not exclusive. The conviction and punishment of any person under this title shall not relieve such person from the responsibility of correcting prohibited conditions or removing prohibited buildings, structures or improvements, nor prevent the enforced correction or removal thereof. 15.04.140 – Notice of administrative action. A notice of pendency of administrative action or proceeding may be filed in the city clerk's office at the time of commencement of action or proceeding or at any time before final judgment or order. The city clerk shall record and index the pendency of action in the name of each person specified in the action or proceeding. After all required work has been completed and approved, the director of building and safety shall record in the office of the city clerk a document terminating the above notice. 15.04.150 – Action by City. In the event that any person, firm or corporation fails, neglects or refuses to demolish, remove, abate or correct a structure or condition existing in violation of this Title, upon his or its property, after a civil court order or criminal conviction obtained pursuant to this Chapter the City Council may order the Director of Building and Safety to demolish, remove, abate or correct the offending structure or condition. A statement of the cost of such work shall be transmitted to the City Council, which shall cause the same to be paid and levied as a special assessment against the property. 15.04.160 – Violation—Penalty. Any person, firm or corporation, whether as principal, agent, employee or otherwise, violating or causing or permitting the violation of any of the provisions of this Title, or of any permit or exception granted under this Title, is guilty of a misdemeanor and upon conviction thereof shall be punishable as provided in Chapter 1.16 of this Code. No suspension of sentence or probation shall be granted to any such violator unless there is included in the terms thereof that the violator shall comply with the provisions which he has been convicted of violating and shall abate or correct the illegal condition, alteration, enlargement, conversion, movement or maintenance of any building established, constructed, operated or maintained contrary to the provisions of this Code. E.9.b Packet Pg. 252 At t a c h m e n t : C o d e o f O r d i n a n c e A m e n d m e n t s ( 2 0 2 2 C A B u i l d i n g C o d e s ) ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 253 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 254 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 255 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 256 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 257 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 258 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 259 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 260 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 261 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 262 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 263 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 264 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 265 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 266 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 267 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 268 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 269 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 270 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 271 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 272 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 273 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) E.9.c Packet Pg. 274 At t a c h m e n t : P C E x e c u t e d R e s o l u t i o n _ 2 0 2 2 C A B u i l d i n g C o d e s ( A d o p t i o n o f t h e 2 0 2 2 C a l i f o r n i a B u i l d i n g C o d e s ) CITY OF GRAND TERRACE CITY COUNCIL MINUTES OCTOBER 25, 2022 Council Chamber Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace ATTACHMENTS TO October 25, 2022 City Council Minutes PowerPoint Presentations OCTOBER 25, 2022 CITY COUNCIL HEARING MEETING Zoning Code Amendment 22-04 ❖Amending Chapter 18.06 –Definition ❖Adding Chapter 18.81 –Art in Public Places 2030 Vision Statement Goal 3 to Promote Economic Development by updating zoning in preparation for future growth and attract and retain businesses Preserve and protect our community and its exceptional quality of life through thoughtful planning Proposal Proposing to Amend Title 18 (Zoning) 1.Adding a definition for “Arts in Public Places” to Chapter 18.06-Definitions ▪"Art in Public Places" means any work of art which is designed for and sited in a space accessible to the public, from a public square to a wall inside a building open to the public.” 2.Add Chapter 18.81 –Art in Public Places ART IN PUBLIC PLACES Art in Public Places has the power to: ▪add beauty, character, and a sense of history to the city ▪provides a diverse and culturally rich environment ▪enhances the quality of life ▪educates the public ▪becomes an economic asset by attracting new business and visitors https://riversidecvb.com/play/arts-culture/ Purpose 1.Establish Art standards to new Development Projects 2.Establish an Art fund to be used exclusively for the creation, purchase, installation, security, and maintenance of art in public spaces ART means all forms of original creations: ▪Sculptures ▪Paintings ▪Graphic Arts ▪Mosaics ▪Photography ▪Crafts in clay, fiber and textiles, wood, metal plastics, and other materials ▪Calligraphy ▪Stained glass ▪Mixed media ▪Lighting elements ▪Dedication ceremonies ▪Water generated art “Love” sculpture in New York City (Stock Photos from f11photo/Shutterstock) https://inlandempire.us/city-of-riverside-reaches-out-to- community-on-public-art/ City of Riverside Art in Public Places will be required: ▪New commercial and industrial construction ▪Remodeling or reconstruction of existing commercial or industrial property ▪Residential subdivisions or development of two or more units City of Loma Linda City of Redlands EXCEPTIONS Public projects Remodeling, repair, or reconstruction caused by a natural disaster Remodeling, repair, or reconstruction of residential units Nonprofit, social service, or cultural institution projects Low, moderate, and affordable housing developments Private educational institutions REQUIREMENTS Art Value: ▪1% of the estimated total building valuation for all new development projects (except single family residential) ▪½% of the estimated total building valuation for single-family residential projects In-Lieu Fee: ▪Monetary contribution will be collected in the same amount as the required Art Value PUBLIC ART FUND –IN-LIEU FEE The in-lieu fee will be managed through a Public Art Fund Funds will be exclusively used for Art Location preference: library, parks, office buildings, sidewalks, lobbies, traffic islands, and plazas. Location and art shall be reviewed by the Planning Commission and approved by the City Council. OWNERSHIP AND MAINTENACE Works of Art shall be maintained as originally approved ▪Title for the work of art will be required ▪A recorded covenant or agreement ▪Successive owners are responsible for the work of art ▪The city will enforce maintenance, repair, or restoration ▪Art donated and accepted by the city will be owned and maintained by the city REVIEW PROCESS AND STANDARDS Future development projects shall include: Proposal and artistic rendering of the artwork Indicate an intention to pay the in-lieu fees The proposed Art shall be considered as an element of the Site and Architectural review process Review and approval by the Planning Commission REVIEW PROCESS AN STANDARDS ▪Conceptual compatibility ▪Preservation and integration of natural features ▪Structural and surface integrity ▪Representation of a variety of Art within the community ▪Appropriate in scale, form, and content Oro Valley, Arizona REMOVAL OF PUBLIC ART ▪The removal or replacement requires Site and Architectural review ▪unless the replacement is identical and in the same location as originally approved ▪Replacement cost shall be equal or greater value ▪Shall be installed within 180 days of the removal ▪The owner may choose to pay an in-lieu fee equivalent to the replacement cost ADDITIONAL REQUIREMENTS An annual report will be precented to the City Council indicating the amount of revenue accumulated in the Art in Public Places Fund and the expenditures made in the preceding fiscal year The Art in Public Places fee does not replace the required development fees, application fees, or other fees as part of the normal development review process California Environmental Quality Act (CEQA) These amendments are exempt pursuant to Section 15061(b)(3) in that the activity is cover by the general rule that CEQA applies to projects, which have the potential for causing a significant effect of the environment This proposal will not have a significant effect on the environment because the amendments only change administration procedures Public Notice Public Hearing Notice was provided in accordance with State Law As of today, Staff has not received any comments Recommendation 1)Conduct a public hearing 2)Direct the City Attorney to Read the tile of the Ordinance,waive further reading,and introduce AN ORDINANCE OFTHECITYCOUNCILOFTHECITYOFGRANDTERRACE,STATEOFCALIFORNIA,FINDING ZONING CODE AMENDMENT 22-04EXEMPTFROMCEQAPURSUANTTOSECTION15061(B)(3)ANDAMENDINGTITLE18OFTHEGRANDTERRACEMUNICIPALCODE,CHAPTER 18.06 (DEFINITIONS),AND ADDING CHAPTER18.81 ESTABLISHING ART IN PUBLIC PLACES REQUIREMENTS Questions? Tentative Tract Map 21-01 (TTM No. 20395) Environmental 21-03 City Council Hearing Meeting October 25, 2022 2030 Vision Statement •This item supports the 2030 Vision Statement Goal No. 3, to Promote Economic Development •11899 Rosedale Ave •Lot size: 3.8-acres •General Plan Land Use Map •Low Density Residential •Zoning •R1-20-V-Very Low Density Residential •AG-Agricultural Overlay District Aerial View •Tentative Tract Map No.20395 •Subdivide 3.8-acres into 6 lots •20,018 sq. ft –24,995 sq. ft. •Density: 2 du/ac •Concurrent Site and Architectural Review Project Description •Planning Commission Public Hearing Meeting of October 6, 2022 •Approved Site and Architectural Review •Construct five one-story single-family residences •(e) one-story single-family residence with a (e) detached Accessory Dwelling Unit (ADU) •Contingent to TTM City Council approval •Recommended City Council Approval of Tentative Tract Map Background Site Plan CEQA / Public Hearing Notices •Qualifies for a Class 15332 Infill Development CEQA exemption •Public notice was provided consistent with State Law •newspaper publishing •500 radius notices •posted in three public places •Staff received one comment today from the resident located at 21559 Litton Avenue Recommendation •Adopt the attached Resolution approving Tentative Tract Map No. 20395, proposing a six-lot subdivision, pursuant to the findings and conditions contained in the attached Resolution. Questions? City Council Public Hearing Meeting October 25, 2022 FUNDING FOR PARS SECTION 115 TRUST FUNDING FOR PARS SECTION 115 TRUST The City Council Adopted Resolution 2022-50 on September 13,2022, authorizing participation in the PARS Post-Employment Benefits Trust Program a Section 115 Trust to address the City’s unfunded pension liability. The City’s UAL per the June 30,2020,Actuarial was $5,262,427. Payments to be made from FY 2021-22 to FY 2043-2044 totaling $8,984,752 of which $3,722,325 is interest. The City Council asked for information on the disposition of the sales proceeds from the sale of Child Care Facility building,Staff provided this at the October 11,2022 Council meeting. FUNDING FOR PARS SECTION 115 TRUST At the City Council meeting of October 11, 2022, Council asked for additional information concerning the various investment strategies offered by PARS Post-Employment Benefits Trust Program. The PARS Post-Employment Benefits Trust Program’s Investment Manager is High Mark Capital Management, and they offer the following Investment Strategies: •Conservative 05-20% Equity •Moderately Conservative 20-40% Equity •Moderate 40-60% Equity •Balanced 50-70% Equity •Capital Appreciation 65-85% Equity Portfolio Manager Keith Stribling, of Highmark Capital, is present to discuss the various Investment Strategies and answer any questions the Council may have. FUNDING FOR PARS SECTION 115 TRUST Anthony Armas from PARS is also be present to answer any questions the City Council may have regarding the administration of the Program. The reasons to prefund the pension obligation are as follows: 1.Complete Local Control over Assets –The City has complete control overs assets,including contributions,disbursements and the timing,amount,and risk tolerance level of investments. 2.Pension Rate Stabilization –Assets can be transferred to the retirement system at the City’s direction,potentially reducing/eliminating large fluctuations in employer contribution amounts. 3.Rainy Day Fund –Emergency source of funds when employer revenues are strained in difficult budgetary or economic times. 4.Diversification –Allows for investment flexibility and offers the potential for assets to earn greater returns than the General Fund;spread the risk vs.sending additional money to CalPERS. FUNDING FOR PARS SECTION 115 TRUST Four-year history of two cities who have adopted and funded PARS Section 115 Trusts Balance Contributions Earnings Balance FY 2018-19 -$ 22,500,000.00$ 1,358,138.21$ 23,858,138.21$ FY 2019-20 23,858,138.21 - 985,280.23 24,843,418.44 FY 2020-21 24,843,418.44 - 5,581,699.63 30,425,118.07 FY 2021-22 30,425,118.07 - (4,087,827.80) 26,337,290.27 Moderate Strategy Balance Contributions Earnings Balance FY 2018-19 -$ 515,694.00$ 1,486.28$ 517,180.28$ FY 2019-20 517,180.28 - 12,034.04 529,214.32 FY 2020-21 529,214.32 - 138,751.34 667,965.66 FY 2021-22 667,965.66 - (93,477.14) 574,488.52 Moderately Conservative Strategy FUNDING FOR PARS SECTION 115 TRUST Staff is looking for direction for an amount for the initial funding of the PARS Section 115 Trust. Staff is recommending using a portion of the proceeds from the sale of the Fire Station. Questions City of grand terrace PARS 115 Trust –OPEB Prefunding Program &Pension Rate Stabilization Program (PRSP) Investment Selection October 25,2022 Contacts Rachael Sanders,CEBS Senior Manager,Consulting (800)540-6369 x121 rsanders@pars.org City of grand terrace ▎2 Anthony Armas,CEBS Client Services Coordinator (800)540-6369 x148 aarmas@pars.org Keith Stribling,CFA Senior Portfolio Manager (949)553-2591 keith.stribling@highmarkcapital.com Pars 115 Trust Team Trust Administrator &Consultant 38 2,000+ Years of Experience Plans under (1984-2022)Administration 1,000+ Public Agency Clients $6.1B Assets under Administration 500 K+ Plan Participants Investment Manager •Investment sub-advisor to trustee U.S.Bank •Investment policy assistance •Uses open architecture •Active and passive platform options •Customized portfolios (with minimum asset level) 102 Years of Experience (1919-2021) $17.6B Assets under Management & Advisement Trustee •5th largest commercial bank and one of the nation’s largest trustees for Section 115 trusts •Safeguard plan assets •Oversight protection as plan fiduciary •Custodian of assets City of grand terrace ▎3 159 Years of Experience (1863-2022) $5.0T Assets under Administration 490+ 115 Trust Clients •Serves as record-keeper,consultant, and central point of contact •Sub-trust accounting •Coordinates all agency services •Monitors plan compliance (IRS/GASB/State Government Code) •Processes contributions/disbursements •Hands-on,dedicated support teams Subaccounts OPEB and pension assets are individually sub-accounted, and can be divided by dept., bargaining group,or cost center Financial Stability Assets in the PARS Section 115 Combination Trust can be used to address unfunded liabilities. Flexible Investing Allows separate investment strategies for OPEB and pension subaccounts. Economies-of-Scale OPEB and pension assets aggregate and reach lower fees on tiered schedule sooner – saving money! Anytime Access Trust funds are available anytime;OPEB for OPEB and pension for pension. No Set Up Cost or Minimums No set-up costs,no minimum annual contribution amounts, and no fees until assets are added. Prefund OPEB GASB 75 OPEB Reimburse agency;or Pay benefits provider Prefund Pension (PRSP)GASB 68 Pension Reimburse agency;or Pay retirement system Retiree MedicalBenefits Assetscan be usedto: PensionRate StabilizationProgram Assetscan be usedto: prefund either or both GeneralFund City of grand terrace ▎4 PARSIRS-Approved Section 115 Trust OPEBActuarial Results Data from 2021 ACFR Measurement Date:June 30,2021 Pay-as-you-Go Discount Rate:1.92%Percent Change Prefunding Discount Rate:4.92% Total OPEB Liability (TOL) Actuarial Accrued Liability (AAL)$1,964,307 30-36%▼? Fiduciary Net Position Actuarial Value of Assets $0 --$0 Net OPEBLiability (NOL) Unfunded Actuarial Accrued Liability (UAAL) $1,964,307 30-36%▼? Service Cost for FY 2020-21 $147,070 --? Annual Benefit Payments (Pay-as-you-Go)for FY 2020-21 $62,881 --$62,881 Rule of thumb:For every one percent increase in the discount rate,the unfunded liability is lowered by 10-12%. City of grand terrace ▎5 Combined Miscellaneous Groups Valuation as of June 30,2020 Actuarial Liability $18.2 M Assets $12.6 M Unfunded Liability $5.6 M Funded Ratio 69.8% Employer Contribution Amount $667.7 K (FY 22-23) Employer Contribution Amount –Projected*$635.3 K (FY 27-28) City of grand terrace ▎6 Pension Funding Status As of June 30,2020,City of Grand Terrace’s CalPERS pension plan is funded as follows*: *Data through 2027-28 from Agency’s latest CalPERS actuarial valuation. HighMARK CAPITAL MANAGEMENT City of grand terrace ▎7 Company Profile LONGEVITY Managing assets for clients since 1919* STABILITY Investment boutique structure headquartered in San Francisco backed by global strength within MUFG Union Bank,N.A.and Mitsubishi UFJ Financial Group. TALENT 38 investment professionals 20 professionals hold the Chartered Financial Analyst ® (CFA)designation 24 years average industry experience ▪Los Angeles ▪Beverly Hills ▪Santa Barbara ▪Portland ▪Tacoma ▪Seattle ▪San Diego ▪La Jolla ▪Irvine LOCATIONS ▪San Francisco*** ASSETS UNDER MANAGEMENT AND ADVISEMENT** $17.6 billion as of 6/30/2022 Client Base Asset Class Equity $7.5 billion Fixed Income $6.0 billion Liquidity $2.7 billion Cash &Cash Equivalents $1.4 billion *Includes predecessororganizations.HighMark Capital Management,Inc.registered with the SEC as an investment adviser on August 7,1998. **Assets under management (“AUM”)include assets for which HighMark provides continuous and regular supervisory and management services.Assets under advisement (“AUA”)include assets for which HighMark provides certain investment advisory services (including,but not limited to,investment research and strategies)for client assets of its parent company,MUFG Union Bank,N.A. ***San Francisco denotesHighMark’s main office.Please refer to HighMark’s ADV for additional locations. AUM $8.8 billion AUA $8.8 billion 8 Establish:Determine your Strategic Asset Allocation Strategy Each Investment Objective reflects the associated PARS Diversified Portfolio as of 6/30/2022.A client’s portfolio construction may vary depending on the client's investment needs,objectives,and restrictions as well as the prevailing market conditions at the time of investment. Expected Standard Deviation (Volatility) Capital Appreciation Balanced Moderate Moderately ConservativeEx p e c t e d Re t u r n Efficient frontier of portfolios with varying ranges of equities and fixed income Conservative Equity Fixed Income Cash Conservative 5-20%60-95%0-20% Moderately Conservative 20-40%50-80%0-20% Moderate 40-60%40-60%0-20% Balanced 50-70%30-50%0-20% Capital Appreciation 65-85%10-30%0-20% 9 Construct Your Plan’s Portfolio:PARS Diversified Portfolios –Tactical Allocation Each Investment Objective reflects the associated PARS Diversified Portfolio as of 6/30/2022.A client’s portfolio construction may vary depending on the client's investment needs,objectives,and restrictions as well as the prevailing market conditions at the time of investment. 10 Conservative Moderately Conservative Moderate Balanced Capital Appreciation Equity 5-20%20-40%40-60%50-70%65-85% Current Tactical 14.25%28.50%47.50%57.00%71.25% Large Cap Blend 4.16%8.17%13.98%17.04%21.48% Large Cap Value 1.82%3.77%6.42%7.70%9.43% Large Cap Growth 1.59%3.30%5.63%6.76%8.25% Mid Cap Blend 1.38%2.75%4.52%5.50%6.87% Real Estate 0.50%1.05%1.77%2.00%2.00% Small Cap Value 1.23%2.26%3.73%4.44%5.17% Small Cap Growth 1.17%2.14%3.53%4.19%4.86% International 1.46%3.16%4.81%5.62%8.36% Emerging Markets 0.94%1.89%3.12%3.75%4.83% Fixed Income 60-95%50-80%40-60%30-50%10-30% Current Tactical 81.01%66.04%46.50%36.00%20.25% Short Term Bond 18.00%13.50%10.70%7.50%3.31% High Yield 1.11%1.03%1.01%0.88%0.80% Intermediate Term Bond 61.90%51.52%34.78%27.63%16.14% Cash 0-20%0-20%0-20%0-20%0-20% Current Tactical 4.74%5.46%6.00%7.00%8.50% TOTAL 100.00%100.00%100.00%100.00%100.00% PARS Investment Objectives As of April 2022 The above information is for illustrative purposes only and is not intended to provide investment recommendations as to which securities to buy or sell,or when to buy or sell securities.Each Sample Portfolio is a hypothetical portfolio only and does not reflect actual investment decisions or recommendations and does not represent actual trading or actual portfolio performance.An actual client’s portfolio construction and performance may vary depending on the client’s investment needs,objectives,restrictions,and market conditions.Asset allocation ranges and performance for each investment objective may also vary depending on the prevailing market conditions.Past performance is no indication of future results.For institutional investor use only.Data as of April 2022. *Expected Returns are based on 30-year returns for various asset classes.Please see disclosure page for additional details on Expected Return and Expected Standard Deviation. Source:Factset Equities Fixed Income Cash Conservative Moderately Conservative Moderate Balanced Capital Appreciation Equity 15.00%30.00%50.00%60.00%75.00% Large Cap Core 7.50%15.50%26.50%32.00%39.50% Mid Cap Core 1.50%3.00%5.00%6.00%7.50% Small Cap Core 2.50%4.50%7.50%9.00%10.50% Real Estate 0.50%1.00%1.75%2.00%2.00% International 2.00%4.00%6.00%7.00%10.25% Emerging Markets 1.00%2.00%3.25%4.00%5.25% Fixed Income 80.00%65.00%45.00%35.00%20.00% Short Term Bond 25.75%14.00%10.00%6.75%3.00% Intermediate Term Bond 52.25%49.25%33.50%27.00%16.00% High Yield 2.00%1.75%1.50%1.25%1.00% Cash 5.00%5.00%5.00%5.00%5.00% Expected Return 4.66%5.30%5.95%6.24%6.60% Expected Standard Deviation 3.46%5.28%8.47%10.20%12.86% 1 Disclosures 2 Each strategy represented as a Sample Portfolio is a hypothetical portfolio only and does not reflect actual investment decisions or recommendations. It is solely for illustrative purposes and is subject to change at any time.It is not intended to represent a specific investment.It does not reflect the liquidity constraints of actual investing or the impact that material economicand market factors may have on an investment adviser’s decision-making.Investors cannot invest in the Sample Portfolio and actual investment results may differ materially. An account could incur losses as well as gains.The Sample Portfolio does not reflect the deduction of advisory fees,brokerage,commissions,or any other actual client expenses,which would reduce investor returns.The sample portfolio does not always reflect the potential impact of active management,excluding those investments that are only available from an active manager.Advisory fees are described in Form ADV,Part 2A and are available upon request. A Sample Portfolio’s expected return (comprised of capital appreciation and income/dividends)is calculated the following way: 1.The expected return of each asset class in a given Sample Portfolio is determined through a combination of historical rates of returns,valuation projections,and economic expectations.Expected rates of return are provided by HighMark proprietary research which incorporates WilshireAssociates Incorporated assumptions.Expected rates of return are developed and annually reviewed by HighMark’s Asset Allocation Committee. 2.With 30-year forecasts for U.S.Treasuries,Wilshire’s ten year forecast for U.S.Treasuries is used as the assumed return for the first ten years of the 30-year period.Over the following twenty years (years 11-30),Wilshire’s ULT forecast is used as the assumed return for U.S Treasuries.The resulting combination of the assumed return on U.S. Government bonds over the two periods becomes HighMark’s 30-year forecast subject to rounding.All other taxable fixed income asset classes are derived from the expected return on U.S.Treasuries plus a credit or term premium consistent with those of the ten year forecasts. 3.With 30-year forecasts for global equity,Wilshire’s ten year forecast for global equity is used as the assumed return for the first ten years of the 30-year period.Over the following twenty years (years 11-30),Wilshire’s ULT forecast is used as the assumed return for global equities.The return on cash over this period is derived from the 10 and 30-year cash assumptions.The resulting combination of the assumed global equity returns over the two periods becomes HighMark’s 30-year forecast subject to rounding. 4.Returns reflect the reinvestment of dividends,interests,and other distributions. 5.An expected return for the Sample Portfolio is then calculated by weighting the returns for each asset class according to the exposure as determined by HighMark’s current strategic allocation. Expected returns generated are before taxes and any fees.The standard deviation for an asset class represents its possible divergence of the actual return for an asset class from its expected return.It is a statistical measure of the potential magnitude of volatility of an asset class from its expected return.The range of returns may be higher or lower than those predicted by expected standard deviation. In certain sub asset classes where Wilshire does not provide a discrete 10-year return forecast,HighMark supplements Wilshire’s 10-year expected returns with its proprietary methodology which is based on various market and economic factors some of which are described below. To obtain a full copy of the methodology please contact IMTProduct@unionbank.com. •US Equities –Expected returns at sub asset class level are determined by starting with Wilshire Broad Market 10 year forecast and interpolating into sub asset class returns by referencing Wilshire 5000 index data. •Municipal Bonds –HighMark determines expected returns by assuming there will be historical return discounts for municipal bonds relative to U.S.Treasuries. •Alternative Investments -Expected total return forecasts for alternative investments begin with the forecast for the return on cash over the respective time-horizon and adjusting for estimating the Sharpe ratio (excess return /standard deviation)of each alternative strategy based on the observed long-term performance of a representative strategy specific hedge fund peer group index. HighMark Capital Management,Inc.(HighMark),an SEC-registered investment adviser,is a wholly owned subsidiary of MUFG Union Bank,N.A.(MUB).HighMark manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations,public agencies,and public and private retirement plans.MUB,a subsidiary of MUFG Americas Holdings Corporation,provides certain services to HighMark and is compensated for these services.Past performance does not guarantee future results.Individual account management and construction will vary depending on each client’s investment needs and objectives.Investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency,are NOT Bank deposits,are NOT guaranteed by the Bank or any Bank affiliate,and MAY lose value, including possible loss of principal. ©HighMark Capital Management,Inc.2022.All rights reserved Construct Your Plan’s Portfolio:PARS Diversified Portfolios –Active v.Passive Each Investment Objective reflects the associated PARS Diversified Portfolio as of 6/30/2022.A client’s portfolio construction may vary depending on the client's investment needs,objectives,and restrictionsas well as the prevailing market conditions at the time of investment.Specific securitiesidentified above do not represent all of the securities purchased,sold or recommended for advisory clients,and you should not assume that investmentsin the securities identified in this presentation were or will be profitable. HighMark Plus (Active) 13 Index Plus (Passive) Equity Ticker Fund Name Ticker Fund Name IVV iShares Core S&P 500 ETFCOFYX VGIAX Columbia Contrarian Core I3 Vanguard Growth &Income Adm IVE iShares S&P 500 Value ETFDODGXDodge&Cox Stock IVE iShares S&P 500 Value ETF HNACX Harbor Capital Appreciation Ret IVW iShares S&P 500 Growth ETF IWR VNQ IWN IWO iShares Russell Mid-Cap ETF Vanguard Real Estate ETF iShares Russell 2000 Value ETF iShares Russell 2000 Growth ETF PRUFX IWR VNQ UBVFX VBK DFALX T.Rowe Price Growth Stock I iShares Russell Mid-Cap ETF Vanguard Real Estate ETF Undiscovered Managers Behavioral Val R6 Vanguard Small-Cap Growth ETF DFA Large Cap International Portfolio Large Cap Blend Large Cap Blend Large Cap Value Large Cap Value Large Cap Growth Large Cap Growth Mid Cap Blend Real Estate Small Cap Value Small Cap Growth International International International Emerging Markets DODFX Dodge &Cox International Stock MGRDX MFS International Growth R6 HHHFX Hartford Schroders Emerging Mkts Eq F IEFA iShares Core MSCI EAFE ETF VWO Vanguard FTSE Emerging Markets ETF Fixed Income Ticker Fund Name Ticker Fund Name VFSUX Vanguard Short-Term Investment-Grade Adm VWEAX Vanguard High-Yield Corp Adm AGG iShares Core U.S. Aggregate Bond Short Term Bond High Yield Bond Intermediate Term Bond Intermediate Term Bond Intermediate Term Bond VFSUX PHIYX PTTRX PTRQX DBLFX Vanguard Short-Term Investment-GradeAdm PIMCO High Yield Instl PIMCO Total Return Instl PGIM Total Return Bond Q DoubleLine Core Fixed Income I Cash Characteristics Fund Manager Dependency Higher dependency on portfolio manager skill Opportunityto Outperform Index Opportunity to outperform index Costs Higher expense ratios due to portfolio manager skill Tracks index, thus little-to-nodependencyon portfolio manager skill. Typically performs below index after fees. Lower expense ratio due to little dependencyon portfolio manager skill or opportunity for outperformance. Strategy Equity (%)1 Year 3 Years 5Years 10 Years Capital Appreciation 65-85%-14.04%5.30%6.42%8.03% Balanced 50-70%-13.63%4.28%5.51%6.90% Moderate 40-60%-12.97%3.51%4.77%6.01% Moderately Conservative 20-40%-11.85%1.82%3.24%4.32% Conservative 5-20%-10.88%0.60%2.15%3.05% HighMark Capital Management ACTIVE PORTFOLIO RETURNS As of June 30,2022 Equity (%)1 Year 3 Years 5 Years 10 Years LAIF*0%0.39%1.00%1.37%0.88% LAIF AVERAGE APPORTIONMENT RATES City of grand terrace ▎14 Past performance does not guarantee future results. *Apportionment rates illustrated reflect the average of the LAIF apportionment rates (released quarterly)over each time period; LAIF apportionment rates data source:https://www.treasurer.ca.gov/pmia-laif/historical/quarterly.asp Strategy Allocation*(%) Capital Appreciation (65-85%Equity)6.36% Balanced (50-70%Equity)26.82% Moderate (40-60%Equity)40.00% Mod.Conservative (20-40%Equity)15.45% Conservative (5-20% Equity)1.82% Other (Custom)9.55% TOTAL 100.00% OPEBStrategy Allocation –Clients HIGHMARK CAPITAL MANAGEMENT Active Platform:58%/Passive Platform:42% Capital Appreciation 6.36% Balanced 26.82% Moderate 40.00% Moderately Conservative 15.45% Conservative 1.82% Other 9.55% As of June 30,2022 City of grand terrace ▎15 *Allocations are based on agencies who have funded Strategy Allocation*(%) Capital Appreciation (65-85%Equity)5.83% Balanced (50-70%Equity)10.00% Moderate (40-60%Equity)37.50% Mod.Conservative (20-40%Equity)36.25% Conservative (5-20% Equity)4.17% Other (Custom)6.25% TOTAL 100.00% PRSPStrategy Allocation –Clients HIGHMARK CAPITAL MANAGEMENT Capital Appreciation 5.83% Balanced 10.00% Moderate 37.50% Moderately Conservative 36.25% Conservative 4.17% Other 6.25% Active Platform:54%/Passive Platform:46% As of June 30,2022 City of grand terrace ▎16 *Allocations are based on agencies who have funded City of Grand Terrace Fiscal Policy Revisions October 25, 2022 Supports City Council Goal #1: Ensuring our Fiscal Viability, through the continuous monitoring of our actual revenues and expenditures against budget appropriations. 2030 Vision Statement Fiscal Policy Revisions •Cash Handling & Control (1.01); •Petty Cash & Change Boxes (1.02); •Investments (1.04); •Fixed Assets (1.05); •Purchasing (3.01) •Travel & Related Business Expenses (3.03) Exhibit A •Unclaimed Money (3.07) Fiscal Policy Revisions •Cash Handling & Control (1.01) –The changes made include removing all verbiage relating to the Child Care Center, increasing the accumulated deposit amount and adding verbiage of how often the deposits should be taken to the bank. •Cash Funds & Change Boxes (1.02) –The change includes removing all verbiage relating to the Child Care Center. Fiscal Policy Revisions •Investments (1.04) –The changes include removing verbiage relating to the Successor Agency and increasing the maximum amount of pooled investments in LAIF from $50 million to $75 million. Fiscal Policy Revisions •Fixed Assets (1.05) The change to this policy is removing the Budgetary Basis for depreciation as it increases the operating costs. To offset this, staff recommends that Fund Balance be set aside in Fund 70 –Equipment Replacement Fund at the end of each fiscal depending on the reserves. Fiscal Policy Revisions •Purchasing (3.01) –Increase to the purchasing limits for Informal Purchases, Formal Purchases, Open Market Purchases to reflect increases in inflation. •Changes to Chapter 3.24 of the Municipal Code to increase City Manager’s authorization limit for the purchase of supplies, materials, equipment and services from $10,000 to $25,000. Fiscal Policy Revisions •Changes to Chapter 3.26 of the Municipal Code to increase City Manager’s authorization limit from $10,000 to $25,000 for the award of contracts relating to public projects and maintenance work. Fiscal Policy Revisions •Travel & Related Business Expenses (3.01) –The change to this policy is Exhibit A which has been simplified to ease of use. •Unclaimed Money (3.07) –The change to this policy was removing verbiage relating to the Successor Agency which is closed. Fiscal Policy Revisions Recommendation •Approve the proposed revisions to the attached City Fiscal Policies, subject to the City Council’s approval of the above-mentioned ordinances. Questions?