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02/27/2018 , CITY OF GRAND TERRACE CITY COUNCIL AND CITY COUNCIL AS THE SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY MINUTES • FEBRUARY 27, 2018 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center• 22795 Barton Road CALL TO ORDER Convene City Council and City Council as the Successor Agency to the Community Redevelopment Agency INVOCATION The Invocation was given by Dr. Mustafa Kuko. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Council Member Kenneth J. Henderson. Attendee Name Title Status Arrived Darcy McNaboe Mayor Present Sylvia Robles Mayor Pro TernPresent Doug Wilson I Council Member Present ] Bill Hussey— Council Member Present Kenneth J. Henderson Council Member _ Present G. Harold Duffey City Manager N Present ------ Richard Adams : City Attorney _ Present Sandra Molina Planning & Development Services Present Director _Cynthia A. Fortune Assistant City Manager Present I Debra Thomas ! City Clerk _ I Presen�— Alan French Public Works Director I Present A. SPECIAL PRESENTATIONS - NONE B. CONSENT CALENDAR Mayor Darcy McNaboe announced two (2) sets of minutes were amended and placed in at the dais for Council's review. City of Grand Terrace Minutes Grand Terrace City Council and Successor Agency February 27, 2018 RESULT: APPROVED [UNANIMOUS] MOVER: Kenneth J. Henderson, Council Member SECONDER: Bill Hussey, Council Member AYES: McNaboe, Robles, Wilson, Hussey, Henderson 1. Waive Full Reading of Ordinances on Agenda DEPARTMENT: CITY CLERK 2. Approval of Minutes— Regular Meeting — 11/15/2016 DEPARTMENT: CITY CLERK 3. Approval of Minutes— Regular Meeting — 12/13/2016 DEPARTMENT: CITY CLERK 4. Approval of Minutes— Regular Meeting —02/13/2018 DEPARTMENT: CITY CLERK 5. City Department Monthly Activity Report (December 2017) RECEIVE AND FILE. C. PUBLIC COMMENT None. D. CITY COUNCIL COMMUNICATIONS Council Member Kenneth J. Henderson Council Member Kenneth J. Henderson thanked the City Council for spending time together reaffirming the City's 2030 Vision working through various issues and challenges facing the City and commended Staff and the consultant for the good work done on behalf of the community. Council Member Bill Hussey Council Member Bill Hussey thanked a San Bernardino County Deputy who risked his life while apprehending a fugitive in the area of the high school. He attended a recent League of California Cities meeting and one of the topics of discussion was the League's continuing dispute with the State regarding the early release program. He also asked support of Council regarding Prop 69 which would require the State to use gas tax funds only for infrastructure and road repairs. City of Grand Terrace Minutes Grand Terrace City Council and Successor Agency February 27, 2018 Council Member Doug Wilson Council Member Doug Wilson also attended the recent City Council workshop and state it was a valuable opportunity to talk about the City's vision and to add and subtract as necessary. He has recently been involved in an educational opportunity that discusses bullying and described the affect it has on families. He asked all families to have a frank discussion with their children about this topic. Mayor Pro Tern Sylvia Robles Mayor Pro Tern Sylvia Robles attended Omnitrans' Administration & Finance Subcommittee meeting to discuss budget goals and targets for the year. She also completed her review of the agency's audits and comprehensive finance reports which reveal the agency is in good shape. She also participated in Omnitrans' CEO work performance evaluation. Mayor Darcy McNaboe Mayor Darcy McNaboe attended SBCTA's February 14, 2018 General Policy Committee meeting. Consent - Administrative Matters Received the January 2018 Procurement Report Received and filed Budget to Actual Report for second quarter Recommended approval of the Reclassification of the Receptionist Position to Records Technician Request to Release Construction Management Service for Structural Repairs to the San Bernardino Santa Fe Depot Received information on Development Mitigation Annual Report for Fiscal Year Ending June 30, 2017 Recommended and Authorized Negotiation about Restricted Grant Agreement between SBCTA and Caltrans • Recommended approval of a contract with California Energy Commission to receive an amount for development of San Bernardino County Sub-Regional Greenhouse Gas Reduction Plan Update • Receive the February 2018 State and Federal legislative update, as well as the Public Affairs Update - 2017 Year in Review On February 15, 2018 Mayor McNaboe Attended the Board of Directors Metro Valley Study Session. Consent - Project Delivery Received and filed Change Order for ongoing construction projects City of Grand Terrace page 3 Minutes Grand Terrace City Council and Successor Agency February 27, 2018 Discussion - Administrative Matters Received the general overview of the proposed budget for Fiscal Year 2018/2019 Discussion - Project Delivery Received Major Projects Status Report through December 2017 Approved the Amended and Restate Agreement with AECOM Technical Services Recommended approval of Contracts for On-Call Right of Way Services three (3) organizations Discussion - Transportation Programming and Fund Administration • Recommended for final approval amounts for the SBCTA Fiscal Year 2018/2019 Budget for the Valley Major Street Arterial Sub-Program and the Valley Major Street Project Advancement Program Adjustment • Recommended for final approval an Allocation of Measure I Valley Freeway Interchange Funds Mayor McNaboe thanked Staff for putting together the workshop and appreciated the interaction with City Council. F. PUBLIC HEARINGS - NONE F. UNFINISHED BUSINESS - NONE G. NEW BUSINESS 6. Treasurer's Report as of December 31, 2017 Cynthia Fortune, Assistant City manager gave the PowerPoint presentation for this item. RECEIVE AND FILE THE TREASURER'S REPORT FOR THE PERIOD ENDING DECEMBER 31, 2017. RESULT: CONSENSUS City of Grand Terrace Page 4 Minutes Grand Terrace City Council and Successor Agency February 27, 2018 SUCCESSOR AGENCY ITEM 7. Update on the Successor Agency's Last & Final Recognized Obligation Payment Schedule (ROPS) Submitted to the Department of Finance Cynthia Fortune, Assistant City Manager gave the PowerPoint presentation for this item. Chairman McNaboe asked if Council agrees with the DOF's adjustment and use bond proceeds to pay for debt and consider refunding the bonds providing the general fund with a net increase of revenue of approximately $240,000, would that be over and above the $210,000. Assistant City Manager Fortune stated Mayor McNaboe's understanding is correct. Board Member Henderson asked if the City submits a Last and Final ROPS, will the City maintain the option of expending the 2011 Tax Allocation Bond Proceeds if there is new redevelopment law and it is in the City's favor or is the City limited to $1.9 million. Assistant City Manager Fortune explained that if the City prepares a Last and Final ROPS, the City would be committed and would not have access to bond proceeds. G. Harold Duffey, City Manager explained that Staff is recommending the City continue with the annual ROPS which would allow the City, potentially at some point, the ability to access the complete bond proceeds. Board Member Henderson asked that the City engage in conversation with Larry Walker from the County to outline the City's game plan. Board Member Wilson stated his understanding of Option No.1 is bad idea and Option Nos. 2 and 3 are both dependent upon whether the soon to be new governor might initiate some sort of legislation that would prohibit the City an opportunity to use the bond money the City has been sitting on for 10 years. City Manager Duffey explained how the bond proceed work. The governor started the process to eliminate redevelopment in 2011. There were some jurisdictions that had bonds, and floated bonds before redevelopment ended. The premise is you take the tax increment to pay off the bonds. When the governor ended redevelopment, his goal was not to have the bonds out there for the RPTTF to pay down bond debt but to freeze those bonds and make agencies defease those bonds. Board Member Wilson asked what the City will do with the $210,000 increase in cost. City Manager Duffey explained that the City will need to hunker down. City of Grand Terrace Minutes Grand Terrace City Council and Successor Agency February 27, 2018 Vice-Chair Robles believes if the City defeases its bonds, everyone becomes whole again, and the City would retain $1.9 million. She suggested the City not carry debt that has interest and work from a clean slate. She doesn't see the benefit of hanging on to a redevelopment fashioned under an old model. City Manager Duffey explained the City has $17 million in its possession and with a change in governorship, there is a possibility the State will allow the City to use those bonds. If Council takes an action to commit the bonds to debt service, it no longer has access and Jo go back and perform a bond indenturement for the $17 million is a bit of a challenge. Chair McNaboe explained that the City did not sell its bonds in bad faith. Redevelopment was being dissolved and the City saw an opportunity to use the one tool it had in its toolbox which allowed the City to complete projects such as storm drains and shoring up the hillside on Mt. Vernon. The City followed the redevelopment guidelines, however not in a timely manner, therefore the funds are frozen at this time. Board Member Wilson believes it is appropriate to hold on to the bonds and take a wait and see approach. Board Member Hussey also agrees with Staffs recommendation. Vice-Chair Robles moved to approve Staffs recommendation however she would like a staff report brought back in June to address the City's tax rate area and if the City defeases its bonds, what would that look like. 1. REVIEW THE PROPOSED RECOMMENDATIONS PROVIDED BY THE DEPARTMENT OF FINANCE (DOF) REGARDING THE SUCCESSOR AGENCY'S LAST AND FINAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR THE PERIOD JULY 1, 2018 THROUGH JUNE 30, 2034 IN THE AMOUNT OF $34,692,383; AND 2. APPROVE ALTERNATIVE I TO CONTINUE WITH ANNUAL ROPS SUBMITTALS TO THE DEPARTMENT OF FINANCE (DOF). RESULT: APPROVED [UNANIMOUS] MOVER: Sylvia Robles, Mayor Pro Tern SECONDER: Kenneth J. Henderson, Council Member AYES: McNaboe, Robles, Wilson, Hussey, Henderson 8. Mid-Year(Second Quarter) and Year-End Budget Review for Fiscal Year 2017-18 Cynthia Fortune, Assistant City Manager gave the PowerPoint presentation for this item. Council Member Hussey commented that the City gets a very small portion of property tax and the majority goes to the State and County. He would like to see a larger portion of property tax come back to the City to help provide more services for its residents. City of Grand Terrace Minutes Grand Terrace City Council and Successor Agency February 27, 2018 Mayor Pro Tern Robles asked if the City were to float bonds, what the bonding capacity would be. Council Member Wilson was looking for the information provided in the staff report about a month ago and stated it all came in just like it was supposed to. Council Member Henderson commented that the current City Council must correct the lack of commercial development in the City. RECEIVE AND FILE THE REPORT. RESULT: CONSENSUS 9. FY2018-19 Budget Development Guidelines and Budget Schedule Cynthia Fortune, Assistant City Manager gave the PowerPoint presentation for this item. APPROVE THE FY2018-19 BUDGET DEVELOPMENT GUIDELINES AND PROPOSED BUDGET REVIEW SCHEDULE. RESULT: APPROVED [UNANIMOUS] MOVER: Doug Wilson, Council Member SECONDER: Kenneth J. Henderson, Council Member AYES: McNaboe, Robles,Wilson, Hussey, Henderson H. CITY MANAGER COMMUNICATIONS G. Harold Duffey, City Manager announced the 11th Annual Walk on Blue Mountain scheduled for Saturday, March 3, 2018. Shuttle service will be available throughout the City. It has come to the attention of the City that residents are receiving telephone calls from contractors and vendors stating they have the endorsement of the City. He clarified that the City does not endorse contractors and vendors and if a resident receives anyone saying otherwise to please report it to law enforcement at the following number (909) 387-8313. Council Member Wilson recommended that if a contractor's license is not listed on a business card or flyer, do not hire. Council Member Hussey stated he has received one of those telephone calls. City of Grand Terrace Minutes Grand Terrace City Council and Successor Agency February 27, 2018 I. CLOSED SESSION - NONE J. ADJOURN The Next Regular City Council Meeting will be held on Tuesday, March 13, 2018 at 6:00 p.m. D cy cNa , ayor Debra Thomas, ity Clerk City of Grand Terrace Page 8