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06/11/1998 CITY OF GRAND TERRACE CITY COUNCIL MINUTES REGULAR COUNCIL MEETING - TUNE 11. 1998 A regular meeting of the City Council of the City of Grand Terrace was called to order in the Council Chambers, Grand Terrace Civic Center, 22795 Barton Road, Grand Terrace, California, on June 11, 1998 at 6:00 p.m. PRESENT: Byron Matteson, Mayor Dan Buchanan, Mayor Pro Tern Herman Hilkey, Councilmember Jim Singley, Councilmember Lee Ann Garcia, Councilmember Tom Schwab, City Manager John Donlevy, Assistant City Manager Tracey Martinez, Deputy City Clerk Bernard Simon, Finance Director Patrizia Materassi, Community and Economic Development Director Virgil Barham, Building & Safety Director Lt. Mike Howell, Sheriffs Department John Harper, City Attorney ABSENT: Brenda Stanfill, City Clerk The meeting was opened with invocation by Councilman Herman Hilkey, Azure Hills Seventh- Day Adventist Church, followed by the Pledge of Allegiance led by Councilwoman Lee Ann Garcia. SPECIAL PRESENTATIONS - None CONSENT CALENDAR CC-98-83 MOTION BY COUNCILMEMBER HILKEY, SECOND BY MAYOR PRO TEM BUCHANAN, CARRIED 5-0, to approve the following consent calendar items: 3A. Approval of Check Register No. 061198 3B. Ratify 06-11-98 CRA Action 3C. Waive Full Reading of Ordinances on Agenda 3D. Approval of 05-27-98 and 05-28-98 Minutes 3E. Resolution - Requesting Authorization to File a Claim for San Bernardino Association Governments Article 3 Funds - Pedestrian Bike Lane Project PUBLIC COMMENT Laurie Shearer, Grand Terrace Branch.Library, on behalf of the Friends of the Library, presented the Mayor with "The Culinary Tastes of Blue Mountain Cooks", a cookbook was put together by the Friends of the Library. The books can be purchased at Grand Terrace Days for $15.00. Council Minutes June 11, 1998 Page 2 Barbara Pfenniahausen, 22111 Ladera Street, complimented the City for removing campaign signs in a timely manner. She expressed her dissatisfaction with the appearance of the old GTI Market site, she feels that it needs to be cleaned up. ORAL REPORTS 5A. Committee Reports 1. Emergency Operations Committee (a) Minutes of 04-06-98 and 05-04-98 CC-98-84 MOTION BY MAYOR PRO TEM BUCHANAN, SECOND BY COUNCH 1VIEIBER GARCIA, CARRIED 5-0, to accept the April 6, 1998 and May 4, 1998 Minutes of the Emergency Operations Committee. 5B. Council Reports Mavor Matteson, reported that Grand Terrace Days will be held on Saturday, June 13, 1998 .beginning with the parade at 9:00 a.m. and encouraged everyone to attend the event. He also reported that the Reunion Committee for Grand Terrace Elementary School is having their meeting on October 24, 1998. He encouraged anyone that graduated from that school in the thirties, forties, and fifties to attend this meeting from 11:00 a.m. to 4:00 p.m., call 825-0114 for more information. Mavor Pro Tem Buchanan, expressed his excitement with the upcoming Grand Terrace Days and is looking forward to seeing everyone out at the event. . He reported that on Saturday at 2:00 p.m. at Pico Park there will be a flag pole dedication ceremony and encouraged everyone to attend. He reported that the efforts to form the East Valley Fire Protection District is at the LAFCO hearing process. That committee will be studying the proposal and making recommendations, however, to do this the committee needs a collection of information supplied by the County of San Bernardino. A memo was received stating that it will take months to put together the information that is needed. It looks as though it may not be until June of 1999 before it can be placed on the ballot. They are in the process of sending a letter asking the Board of Supervisors to consider extending the contract with California Department of Forestry beyond December 31, 1998. Councilmember Hilkev, stated that there is a candidate that has a habit to place his campaign signs twenty feet in the air making it impossible for City Staff to remove the signs. He questioned whether there was anything that can be done to eliminate this. City Attornev Harper, stated that the City can prepare a letter requesting that he remove the signs. Councilmember Hilkev, thanked City Attorney Harper for sponsoring one of the baseball teams and presented him with a plaque. He expressed his satisfaction with the recycling Council Minutes June 11, 1998 Page 3 program and the service that we are receiving from USA Waste. He reported that Blue Mountain Coffee Shop offers a great lunch deal. Councilmember Sinalev, encouraged everyone to attend Grand Terrace Days on June 13, 1998. Councilmember Garcia, thanked all of the Sponsors for the 20th Anniversary and Grand Terrace Days. She reported that she will be a judge for the coloring contest sponsored by the Grand Terrace Fire Station. She also reported that she attended the 30th Anniversary tile project at Terrace View Elementary and thought that it would be a good project to have here in the City. She encouraged the residents to fill out the survey that was included in the latest edition of the "Terrace View" and referred to the calendar of events provided in the newsletter for a look at the upcoming events. Councilmember Hilkev, reported that the Sheriff s Department reported. that there are no high risk sex offenders on probation living in Grand Terrace. PUBLIC HEARINGS 6A. An Urgency Ordinance of the City Council of the City of Grand Terrace, California, Amending Chapter 4.72 of the Grand Terrace Municipal Code and Establishing Sewer User Charges. :-Mayor Matteson opened discussion to the public Barbara Pfenniehausen, 22111 Ladera Street, expressed her concern with the costs to the residents of the City of Grand Terrace for sewer treatment. She questioned whether residents are paying the actual cost of the use at the current time. Assistant Citv Manager Donlevv, stated that in April, 1996, the City of Colton adopted a five year program to address a number of issues surrounding a Cease and Desist Order issued against the Colton Wastewater Treatment Plant, of which the City of Grand Terrace, under agreement, has a 25% capacity interest. Under that program, a plan was developed to include a number of major improvements, expansion and repairs to satisfy the requirements of the Regional Water Quality Control Board. A key element of the program included a financing plan to pay for the improvements. In June,. 1996 both cities of Colton and Grand Terrace enacted the first of two projected rate increases to fund the program. The Grand Terrace rate was increased from $12.00 to $15.75. During the discussions with Colton regarding the Cease and Desist Order, an agreement was reached which provided as follows: Grand Terrace's obligation represents the costs for 1.6 mgd of the plant. This represents approximately 25% of the operational costs, and any allocation of rates would represent this percentage. Colton is responsible for the remaining 75% of the plant; all expansion costs and the maintenance and operation of the SARI Line (brine line). As proposed in 1996, the next review of the rates would occur in 1998. Over the past few months, the staffs from the cities of Colton and Grand Terrace have been involved in-a review of the Financial Plan for the Treatment Plant, which has included an analysis of the proposed rate increase which is scheduled to take Council Minutes June 11, 1998, Page 4 effect this year. Mayor Pro Tem Buchanan, who was previously designated as the City Representative in 1996 to represent our interest in the negotiations with Colton was also included in the review. In 1996, a financial plan was adopted which provided for a rate increase in July, 1996 and for a second in July, 1998. At the time of approval, the projected increase for 1998. was in the 8 to 9 % range. Many of the rate projections were based on assumptions which factored estimated costs regarding construction and State Revolving Fund Loans, with no specifics. Colton has now completed the development of a Master Plan for the Plant and the rate estimates are now ready for implementation. The proposed rate increase for residential rate will experience a 13% increase from $15.75 to $18.00 and the Commercial rate will experience a 16% increase from .77 to .90. Each will become effective in July, 1998. As projected, the increase will be sufficient for the next four years. The rate is inclusive of both the amount required for the City of Colton, Administration and Maintenance costs and includes an overhead cost allocation. The next rate evaluation should occur in May, 2003. Mavor Matteson, questioned what the rate for the City of Colton will be. Assistant Citv Manaeer Donlevv, responded with $18.50 and Grand Terrace will charge $18.00 which includes overhead and the maintenance of sewer lines and feels confident that the financial plan is fair and that the rate is what it should be. Councilmember Hilkev, expressed his concern with the rate that Grand Terrace residents will be required to pay in comparison to the increase that the residents of Colton will be required to pay. He is also concerned with the percentage that the City of Grand Terrace is adding on for overhead costs. Mavor Pro Tem Buchanan, responded that the percentage of the rate increase in.higher for Grand Terrace on the wholesale rate compared to Colton's overall rate increase is due to a couple of factors, two years ago Colton increased theirs more than the City of Grand Terrace increased theirs and in calculating the rates in the early projections, one of the big areas that they favored Grand Terrace was in our participation in the tertiary treatment program by 60 or 80 thousand dollars per year. Colton already has made a leap on their rates and now that there are solid numbers they have been able to make some modifications. Councilmember Sinslev, expressed his concern with the accountability of the money that should have been in the account. Mavor Pro Tem Buchanan, stated that there are issues that remain open. The money has not been accounted for. The purpose of this increase is a response from the increase from the City of Colton. They have tried to assure us that the money was spent on operational costs for sewer repairs that were necessary. The rate increases are based on the actual operational costs of the facility along with the repairs that are necessary and on Colton's side some preliminary expansions. . Councilmember Sinalev, stated that we need to keep our own Capital Improvement money and questioned whether the rate will continue to increase. Council Minutes June 11, 1998 Page 5 Mavor Pro Tem Buchanan, stated that at this stage Grand Terrace does not have a lot of alternatives. The City can elect not to raise the rates to our customers and the City can subsidize the difference. Staff is proposing a complete pass through. If we do not pay the increase we will end up in litigation. Councilmember Singlev, stated that we don't use our full percentage and feels that we should charge the City of Colton for the percentage that they used of the City of Grand Terrace. Councilmember Hilkev, expressed his concern with the increase and feels that the City of Colton is unstable and is opposed to additional cost that staff is proposing. He questioned why this is an urgency ordinance. Assistant Citv Manager Donlevv, responded that Grand Terrace was waiting for the City of Colton to make the first move with the rate increase. This allocation represents the increase that Colton will charge which.is what it will cost to provide service to the residents of Grand Terrace. Councilmember Hilkev, questioned how much staff is proposing to add on for overhead costs. Mavor Pro Tem Buchanan, stated that Colton has adopted these rates and that they will begin billing Grand Terrace July 1. Assistant Citv Manager Donlevv, stated that this amount is the bottom line cost. The only way to lower the rate is to take it out of the Capital Improvement Funds. Mavor Matteson, questioned why neighboring cities are cheaper. Assistant ON Manager Donlevv, stated that all of the costs have compounded. Coltons Plant is older than some. Councilmember Singley, stated that costs for improvements are higher now than they were years ago. Mavor Pro Tem Buchanan, the Cease and Desist order was given for the reliable capacity. Colton and Grand Terrace, for years, were paying less than the actual cost for maintaining and operating the sewer plant and it has caught up with us. There are several issues that are still pending, however, this is a rate that has been passed on to us by the City of Colton. The extra costs that staff is proposing is adequate for the maintenance and Capital Improvement Fund at an adequately funded level. Councilmember Hilkev, feels that there shouldn't be an increase. Councilmember Garcia, feels that we need to recoup our costs, if we delay we will pay later. We need to maintain what we have. She expressed her support of the work of staff and Mayor Pro Tem Buchanan. Council Minutes June 11, 1998 Page 6 Barbara Pfenniehausen, 22111 Ladera Street, feels that Colton will never be accountable for the money that is no longer in the Capital Improvement Fund. She encouraged Council not to allow Colton to bank our money. Citv Manager Schwab, stated that the wholesale sewer rate is fixed by Colton. We have to pay the rate or enter into litigation. He feels the figures are sound. Council can regulate the $3.38 that is added to cover maintenance and administration of the sewer lines within our City. He feels that sewer lines will need to be replaced sooner or later and funds will be needed to do this. Mayor Matteson closed the Public Hearing. CC-98-85 MOTION BY COUNCILMEMBER SINGLEY, SECOND BY MAYOR PRO TEM BUCHANAN, CARRIED 4-1-M (COUNCii IV EMBER HILKEY VOTED NO), to approve an Urgency Ordinance of the City of Grand Terrace, California, Amending Chapter 4.72 of the Grand Terrace Municipal Code and Establishing Sewer User Charges. 6B. An Ordinance of the City of Grand Terrace, California, Amending the Barton Road Specific Plan of said City in BRSP-98-01-A3, Amending the Plan as Follows: 1) To Allow Exception to Special Standards within the Master Plan Area No. 4 in Relation to Building Locations; and 2) Inclusion of Nurseries and Garden Supply Uses within the Village Commercial District, and in Z-98-01 Amending the Zoning and Barton Road Specific Plan Map Designations.from Rl- 7.2 to BRSP-VC, and in GP-98-01 Amending the General Plan Land Use Map and General Plan Land Use Map Table VI-1, and in E-98-02- an Associated Negative Declaration, Filed by Joval Development Company. Communitv and Economic Development Director Materassi, stated that the purpose of the Zone Change and General Plan Amendment is to facilitate the development of a freestanding Rite Aid Pharmacy with a drive-thru facility, and the elimination of.blight created by an existing vacant commercial property and structure. Seven (7) application procedures, plus 2 map amendments are required for the approval of this project not including plan check for working drawings. While the required zoning and General Plan amendments do not have a negative impact on the implementation of the Barton Road Specific Plan; the architecture will serve as a prototype for future development in the area; and the tenant itself is a great asset to the community of Grand Terrace. She introduced Val Clemens, representative from Jovial Development, George Flower, the broker that has put this project together and Sy Golob, the architect representing Rite Aid. Sv Golob, gave a presentation on the design for the development of the proposed Rite Aid. Councilmember Hilkev, questioned how the drive-thru pharmacy works. Sv Golob, responded that it is intended for senior citizens and other people that do not Council Minutes June 11, 1998 Page 7 want to get out of the car as a convenience. Mayor Matteson opened discussion to the public, there being none he returned discussion to Council. CC-98-86 MOTION BY COUNCILMEMBER SINGLEY, SECOND BY COUNCILMEMBER HILKEY, CARRIED 4-0-1-0 - (COUNCILMEMBER GARCIA WAS ABSENT), to approve an Ordinance of the City of Grand Terrace, California, Amending the Barton Road Specific Plan of said City in BRSP-98-01-A3, Amending the Plan as Follows: 1) To Allow Exception to Special Standards within the Master Plan Area No. 4 in Relation to Building Locations; and 2) Inclusion of Nurseries and Garden Supply Uses within the Village Commercial District, and in Z-98-01 Amending the Zoning and Barton Road Specific Plan Map Designations from R1-7.2 to BRSP-VC, and in GP-98-01 .-Amending the General Plan Land Use Map and General Plan Land Use Map Table VI-1, and in E-98-02 an Associated Negative Declaration, Filed by Joval Development Company. -:Val Clemens, Joval Development, thanked staff. Councilmember Garcia, stated that she supports the Rite Aid Project and the approved Ordinance. UNFINISHED BUSINESS - None NEW BUSINESS 8A. Resolution - Amendment of Measure I, 5 and 20 Year Capital Improvement Program CC-98-87 . :.MOTION BY COUNCILMEMBER SINGLEY, SECOND BY COUNCILMEMBER GARCIA, CARRIED 5-0, to approve a Resolution of the City Council of the City of Grand Terrace, State of California, Amending the Measure I five-Year Capital Improvement Program and Twenty-Year Transportation Plan. 8B. Adjustments to Proposed FY 1998-1999 Budget Mavor Matteson, expressed his concern with Community/Economic Development Department line items 111, 219, 255, and 270. Councilmember Sinelev, expressed his concern with line item 111. Councilmember Garcia, feels that the Managers recommendations are reasonable and feels that the Community and Economic Development Directors goals are important to the community. Council Minutes June 11, 1998 Page 8 Councilmember Hilkey, supports the efforts of the Community and Economic Development Department and the Manager's recommended budget. Mavor Pro Tem Buchanan, stated that he supports the Manager's recommendations and feels that Economic Development is important to the stability of the City. 8C. Adopt Fiscal Year 1998-1999 Budget Councilmember Sinalev, stated that he supports the budget, however, he is opposed to the hiring of an intern, line item 111. CC-98-88 MOTION BY COUNCELMEMBER HILKEY, SECOND BY COUNCELMEMBER GARCIA, CARRIED 5-0, to adopt a resolution for the 1998-1999 Fiscal Year Budget of the City of Grand Terrace with estimated revenues of$4,086,603, use of available fund balance of$793,705, net transfers- in of $1,215,476, and an interfund loan from CRA $350,000 for a total source of funds of$6,445,784 and total expenditures of$5,819,368, and net transfers-out $400,191, for a total use of funds of$6,219,559. ORDER OF ADJOURNMENT Mayor Matteson adjourned the City Council Meeting at 8:28 p.m., until the next CRA/City Council Meeting which is scheduled to be held on Thursday, June 25, 1998 at 6:00 p.m. CITY CLERK of=thePCity_of Gnk�d Terrace _ MAY R of the City of rand Terrace /_