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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