05/13/2004 CITY OF GRAND TERRACE
CITY COUNCIL MINUTES
REGULAR MEETING-MAY 13, 2004
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 May 13,
2004, at 4:30 p.m.
PRESENT: Herman Hilkey, Mayor
Maryetta Ferre, Mayor Pro Tem
Lee Ann Garcia, Councilmember
Don Larkin, Councilmember
Bea Cortes, Councilmember
Tom Schwab, City Manager
Brenda Stanfill, City Clerk
Steve Berry, Assistant City Manager
Larry Ronnow, Finance Director
Jerry Glander,Building& Safety Director
Gary Koontz, Community Development Director
Lt. Hector Guerra, Sheriff's Department
ABSENT: John Harper, City Attorney
CONVENE COMMUNITY REDEVELOPMENT AGENCY AND CITY COUNCIL
MEETING AT 4:30 P.M.
REVIEW THE PROPOSED FY 2004-2005 CRAXITY COUNCIL BUDGET
Citv Manager Schwab, indicated that this is the time and the place to review the
Budget for FY 2004-2005. He reported that all services that were provided in the
prior year are included in the current budget, staff has not proposed any cuts. The
Traffic Deputy remains in the current budget. There is a significant change in the
Law Enforcement Budget due to the 3%at 50 retirement package. He indicated that
the City had a good performance in revenues and expenditures and we did not have
to dip into the reserve account or the fund balance even though we did sustain the
loss of$215,000.00 of VLF. He reported that in this year's budget the revenues will
exceed the projected expenditures so staff is presenting to Council a balanced budget
that does not rely on utilizing any fund balance or the reserve fund. There is a one
time revenue in this budget which is a purchase and sale of the Option House. That
will increase the revenues by about $100,000.00 that won't be repeated next year.
Finance Director Larry Ronnow.gave a presentation on the proposed FY 2004-2005
Preliminary Budget. He went through the revenues and the expenditures for
Council Minutes
May 13,2004
Page 2
Community Redevelopment Agency and the City Council by Fund types.
CRA-2004-12 MOTION BY MAYOR PRO TEM FERRE, SECOND BY COUNCILMEMBER
CC-2004-46 CORTES, CARRIED 5-0, to accept the Budget for the 2004-2005 Fiscal Year.
Mayor Hilkey temporarily adjourned the Community Redevelopment Agency Meeting and City
Council Meeting at 6:00 p.m.
May Hilkey reconvened the City Council Meeting at 6:30 p.m.
The City Council meeting was opened with invocation by Councilman Don Larkin,followed by the
Pledge of Allegiance led by Councilwoman Bea Cortes.
SPECIAL PRESENTATIONS
2A. Proclamation- Water Awareness Month
Councilmember Larkin read a proclamation proclaiming May 2004 as "Water
Awareness Month"and urged all citizens to be responsible water users and protectors
and presented it to Don Hough from Riverside Highland Water Co.
2B. Terrace View Elementary School Water Awareness Poster Contest
Don Hough,Riverside Highland Water Company,introduced the Assistant Principal
from Terrace View Elementary School,Mr. Hyder.
Mr. Hyder, Assistant Principal Terrace View Elementary School, thanked the
Council for the opportunity and Riverside Highland Water Co. for the sponsorship.
He introduced the winners of the Water Awareness Poster Contest. He announced
that Ariana Martin is the Grand Prize Winner of the Water Poster Contest and that
she will receive a $100 savings Bond from Riverside Highland Water Co. He
thanked everyone for their support.
2C. Home of Distinction Award
Mayor Hilkey and the Council presented Carolee Rake with the Home of Distinction
award for this quarter.
2D. Dennis Yates -Air Quality Management District Update
Dennis Yates, Area Representative, Air Quality Management District, gave a
presentation on the AQMD. He requested support from the City of Grand Terrace
Council Minutes
May 13,2004
Page 3
on the Senate Bill 1397,which would enact the locomotive emissions reduction and
mitigation program by a resolution or a letter of support.
It was the consensus of the Council to place a resolution in support of Senate Bill 1397 on
the next Council Agenda.
2E. Proclamation-Mining Awareness Week
Councilmember Garcia read a proclamation,proclaiming May 2-8,2004 as Mining
Awareness Week in the City of Grand Terrace encouraging community members to
recognize mining as a part of San Bernardino County's past,present, and fature.
CONSENT CALENDAR
CC-2004-47 MOTION BY COUNCILMEMBERLARKIN,SECOND BY COUNCILMEMBER
GARCIA, CARRIED 5-0, to approve the following consent calendar items:
3A. Approval of Check Register Dated May 13, 2004
3B. Ratify 05-13-2004 CRA Action
3C. Waive Full Reading of Ordinances on Agenda
3D. Approval of 04-22-2004 Minutes
3E. Insurance Reimbursement to Beautification Fund
PUBLIC COMMENT
Patricia Farlev. 12513 Michigan Street, expressed her concern with the traffic on Michigan
Avenue,which she feels should be protected as a residential street. She feels that there is
way too much traffic now and that there is a trucking company that should never been
allowed on the street. She requested that the City plan very carefully with regards to
Michigan Street. She feels that not only do they need to prevent further traffic but they need
to stop a lot of the traffic that currently exists. She feels that Commerce should go all the
way through for large trucks . She feels that it is important for residents to know the effects
of the Outdoor Adventure Center and encouraged everyone to attend the Planning
Commission Meeting on May 20, 2004. She does not feel that there is a coordination of
projects, which affect streets like Michigan, between Highgrove, Loma Linda and Grand
Terrace and feels that nobody has any business doing any more development until they think
that through and solve the problem.
ORAL REPORTS
5A. Committee Reports
Council Minutes
May 13,2004
Page 4
1. Historical and Cultural Activities Committee
A. Minutes of 04-05-2004
CC-2004-48 MOTION BY MAYOR PRO TEM FERRE, SECOND BY COUNCILMEMBER
GARCIA, CARRIED 5-0, to accept the April 5,2004 Minutes of the Historical and
Cultural Activities Committee.
COUNCIL REPORTS
Councilmember Larkin, reported that he attended the Art Show and that once again it was
an outstanding event. He reminded everyone that the Lion's Club will be holding their 19`h
Annual Golf Tournament on Friday, June 4, 2004. He reported that he read in the Blue
Mountain Outlook that the Grand Terrace Foundation will be removing the graffiti in the
canal.
Mavor Pro Tem Ferr6,reported that she also attended the Annual Art Show and feels that it
is really an asset to the Community and that she thoroughly enjoyed it. She feels that the
Measure I improvements on Grand Terrace Road, Mt. Vernon and Canal is a huge
improvement to the entrance to the City and that it is a very important project.
Councilmember Garcia, thanked Patricia Farley for her comments. She indicated that she
agrees with her and feels that the more involved the residents the better. She feels that there
needs to be a coordination with Loma Linda and Highgrove. She suggested having joint
meetings with Loma Linda and Highgrove. She reported that at the League of California
Cities Legislative Action Days the General Assembly reached an agreement with the
Governor on a new constitutional amendment. She indicated that the LOCAL Coalition
collected 1.1 million signatures to get an initiative on the ballot. In mid April the Governor
came to them and indicated that he would like to work with the group. Discussions tools
place and an amended constitutional agreement was made. It is up to the legislature to place
it on the ballot, which will give us constitutional protection.
She requested that the following be included in the minutes:
Pronosed Agreement With Governor Arnold Schwarzenegger
Deal Points -November 2004 Constitutional Amendment
• VLF Repayment. Require repayment in 2006-07 of 2003-04 VLF Backfill
Loan($520 million back to cities)
VLF Reduction/New Property Taxes to Cities. Lower the VLF
permanently to 0.65% from 2%, and provide property taxes to cities and
counties to offset VLF backfill (less $700 million for 2 years—$350 million
city and $350 million county).
Council Minutes
May 13,2004
Page 5
• No Future Tax Raids. Prohibit the state from taking the property tax, sales
tax, and the remaining VLF of local governments.
• Mandate Reimbursements. Require payment of deferred mandate
reimbursements to local government,beginning in 2006-07.
• Automatic Repeal of Mandates. Require that failure to pay mandate
reimbursements in a timely way will trigger repeal of law imposing mandate.
• Property Tax Backfill. Guarantee payment of the property tax backfill to
cities and counties due to Prop. 57 "triple flip" (which suspended 1/4 cent
local sales tax).
• Sales Tax Returned. Guarantee that the 1/4 cent sales tax is returned to
cities and counties when the Prop. 57 bonds are repaid.
• No Property-Sales Tax Exchange. Oppose addition of property-sales tax
exchange.
• Governor to Chair Campaign. Governor advocates legislative approval of
the proposed amendment and serves as chairman of the campaign to secure
voter approval in November 2004.
• LOCAL Initiative Still on Ballot. The Local Taxpayers and Public Safety
Protection Act remains on the November 2004 ballot in the event legislature
does not approve "agreement". If legislative approval were secured, the
League and the LOCAL Coalition would devote all of our efforts to passage
of the new constitutional amendment.
Resolution Before the League General Assemblv Thursday.Mav 13, 2004
RESOLUTION RATIFYING CERTAIN ACTIONS OF THE BOARD OF
DIRECTORS OF THE LEAGUE OF CALIFORNIA CITIES
Source: Board of Directors
WHEREAS, on September 10, 2003 the General Assembly of the League of
California Cities(the"General Assembly")adopted a resolution ratifying the action
of the League Board of Directors in July 2003 to sponsor a statewide ballot initiative
to empower the voters to limit the ability of state government to confiscate local tax
funds to finance state government; and
WHEREAS,in concert with its partners in the LOCAL Coalition,the League Board
of Directors authorized the formation of a campaign committee, the filing of a
proposed initiative in December 2003 entitled the Local Taxpayers and Public Safety
Protection Act(the"LOCAL Initiative"), and part of the necessary funding of such
campaign with non-public funds of the League; and
WHEREAS,is early February the Attorney General approved the title and summary
Council Minutes May 13,2004
Page 6
for the LOCAL Initiative and the process of circulating petitions to collect signatures
to qualify the measure for the ballot began; and
WHEREAS,throughout the next two months over 125,000 signatures were collected
on a volunteer basis and over 1 million paid signatures were collected; and
WHEREAS, on Friday, April 16 over 1.1 million signatures were filed with the
respective county election officers,an amount likely sufficient to qualify the LOCAL
Initiative for the November 2004 ballot; and
WHEREAS, Governor Arnold Schwarzenegger has offered to collaborate with the
League and its LOCAL Coalition partners to secure legislative and voter approval of
a proposed alternative November 2004 constitutional amendment with equivalent or
better revenue and mandate protection for local agencies; and
WHEREAS, in exchange for his leadership of the campaign for the alternative
constitutional measure,the Governor has proposed that the League and the LOCAL
Coalition support a two-year budget package that would provide for contributions of
$1.3 billion by cities,counties,special districts and redevelopment agencies each year
for two years,with the VLF Backfill Loan of 2003-04 constitutionally guaranteed to
be repaid to cities and counties in 2006-07 and repayment of previously deferred
mandate reimbursement to local governments commencing in 2006-2007; and
WHEREAS, on April 17, 2004, the League Board of Directors adopted a two-part
motion,formally(1)reaffirming the League's strong support for the just-filed Local
Taxpayers and Public Safety Protection Act (the "LOCAL" Initiative"), including
fundraising; and (2) authorizing the Executive Committee of the League Board of
Directors to enter into discussions at the invitation of the Governor concerning and
alternative constitutional amendment package,consistent with the LOCAL Initiative,
that would protect the same local revenues and agencies and respond to the
Governor's budget proposals. The motion authorized the Executive Committee to
move forward on the alternative proposal following consultation with the Board of
Directors; and
WHEREAS, since April 17, the League Executive Committee has consulted with
the League Board of Directors on three occasions,and after the final consultation on
May 11, the Executive Committee took the following action on behalf of the Board
of Directors:
(1) Reaffirm the League Board's strong support for the passage of the Local
Taxpayers and Public Safety Protection Act on the November 2004 ballot and
continue with fundraising and other activities to support its success;
Council Minutes
May 13,2004
Page 7
(2) Accept and support the Governor's proposal to advocate the passage of an
alternative constitutional amendment by the Legislature which provides
equivalent or better local revenue and mandate protection in conjunction with
a two-year budget package,providing for a$1.3 billion contribution by local
governments to the state budget deficit for no more than two years, after
which all contributions by local governments of their general revenues and
tax increment to the state budget would cease and the 2003-04 VLF Backfill
Loan would be constitutionally guaranteed to be repaid;
(3) In the event the alternative constitutional amendment and two-year budget
package secures legislative support, the League will work with Governor
Schwarzenegger and the LOCAL Coalition to secure passage of the
alternative; and
(4) If the alternative constitutional amendment and two-year budget package fails
to receive legislative support,the League will devote its exclusive efforts and
energies to the passage of the Local Taxpayers and Public Safety Protection
Act.
WHEREAS, in a special meeting of the League Board of Directors on May 12,
2004,the Board has ratified the above action and respectfully submits this resolution
for approval by the General Assembly of the League on May 13,2004 in Sacramento,
California; now, therefore be it
RESOLVED,bythe General Assembly of the League of California Cities assembled
at a special meeting in Sacramento,May 13 2004,that the above action of the Board
of Directors of the League of California Cities be approved and ratified; and be it
further
RESOLVED, that all city officials are again called upon to unite and lend their
personal time and support to the campaign to secure permanent constitutional
protection of city revenues on the November 2004 ballot.
Councilmember Garcia, indicated that there is still a lot to do but there is hope.
Mavor Hilkev, feels that within the last few years the League has done a good job of
organizing a forum to pass legislation and an amendment to the State Constitution that
guarantees the VLF. He is excited,however,concerned that the Governor may not keep his
promise three years down the road. He thanked Councilmember Garcia for representing the
City and for the report.
Council Minutes
May 13,2004
Page 8
Councilmember Cortes,reported that she attended the Art Show,she thanked the Historical
and Cultural Activities Committee for doing a nice job. She thanked Ty Shuling for being
at the Council Meeting and for his presentation. She reminded everyone that the Fire
Department will be holding their fundraising Pancake Breakfast on May 15, 2004.
Mavor Hilkev, stated that Measure I is great as well as SANBAG and all those who
participate in the process. The cities would never have a say if it was all State run. He feels
that the Art Show was tremendous.
PUBLIC HEARING-None
UNFINISHED BUSINESS -None
NEW BUSINESS
8A. Resolution-Measure I Expenditure Plan
CC-2004-49 MOTION BY COUNCILMEMBER CORTES,SECOND BY COUNCILMEMBER
LARKIN, CARRIED 5-0, to approve a Resolution approving the Expenditure Plan
for the Revenues Expected to be Derived from the Proposed Continuation of Measure
I.
CLOSED SESSION -None
ORDER OF ADJOURNMENT
Mayor Hilkey adjourned the City Council Meeting at 7:45 p.m., until the next CRA/City Council
Meeting which is scheduled to be held on Thursday,May 27, 2004 at 6:30 p.m.
CITY CLERK of the C/y of Grand Terrace
MAYOR of the Ci of Grand Terrace