08/24/2010V
CITY OF GRAND TERRACE
CITY COUNCIL MINUTES
REGULAR MEETING - AUGUST 24, 2010
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 August
24, 2010 at 6:00 p.m.
PRESENT: Maryetta Ferre, Mayor
Bea Cortes, Councilmember
Walt Stanckiewitz, Councilmember
Betsy M. Adams, City Manager
Tracey Martinez, Deputy City Clerk
Bernard Simon, Finance Director
Joyce Powers, Community & Economic Development Director
Richard Shields, Building & Safety Director
Colin Burns, Harper and Burns, LLC
Sgt. Carlos Espinoza, San Bernardino County Sheriff's Department
ABSENT: Lee Ann Garcia, Mayor Pro Tern
Brenda Mesa, City Clerk
_ Rick McClintock, San Bernardino County Fire Department
The City Council meeting was opened with the Pledge of Allegiance led by Councilwoman Bea
Cartes.
SPECIAL PRESENTATIONS
2A. Chamber of Commerce Business of the Month
Sally McGuire. President Chamber of Commerce, announced that Anna Thigpen, Century
21 Real Estate is the Business of the Month for August.
2B. OmniGo Hometown Shuttle Service - Milo Victoria, CEO'General Manager
Omnitrans
Milo Victoria. CEO Omnitrans, introduced himself and gave a brief over view of Omnitrans
the organization and announced that OmniGo the new hometown shuttle service will begin
in September and introduced Nicole Ramos who will tell about the service.
Nicole Ramos, gave an overview of the new service that is going to be provided by
Omnitrans.
CONSENT CALENDAR
Council Minutes
08l24- 2010
Page 2
CC-2010-73 MOTION BY COUNCILMEMBER CORTES, SECOND BY COUNCILMEMBER
STANCKIEWITZ, CARRIED 3-0-1-0 (MAYOR PRO TEM GARCIA WAS
ABSENT), to approve the following Consent Calendar Items with the removal of
item 3A.
3B. Waive Full Reading of Ordinances on Agenda
3C. Approval of 08-10-2010 Minutes
3D. Resolution Rescinding Resolution 2010-25 in its Entirety and Approving a
Resolution of Delinquent Refuse User Fees and Directing that Such
Delinquent Fees be Collected on the Tax Roll for the Property Within the
City of Grand Terrace
3E. Crime Prevention Committee Minutes of 07-12-2010
3F. Community Emergency Response Team Minutes of 07-06-2010
3G. Emergency Operations Committee Minutes of 07-06-2010
ITEM REMOVED FROM CONSENT CALENDAR
3A. Check Register Dated 08-24-2010
CC-2010-74 MOTION BY COUNCILMEMBER STANCKIEWITZ, SECOND BY
COUNCILMEMBER CORTES, CARRIED 3-0-1-0 (MAYOR PRO TEM GARCIA
WAS ABSENT), to approve Check Register Dated August 24, 2010.
PUBLIC COMMENT
Burt Seuylemezian, 22400 Barton Road, indicated that he is representing the Grand Terrace
Lion's Club. They are donating a flag that will be flown at the Richard Rollins Park. He
invited the Council and the Community to the ceremony that will be held at the Richard
Rollins Park and conducted by the Boy Scout Troop 40. They will retire the existing flag and
replace it with a new one. This ceremony will take place on September 11, 2010 at 6:00 p.m.
Sylvia Robles, 23008 Orangewood Court, like everyone else, she wants a new market but on
further study she has some concerns. The staff report shows new revenues of only
$105,000.00 per year, $35,000 to the general fund and $70,000 to the RDA. She is
concerned that we need ball fields for our youth. Are they going to have to wait five years
for Stater Bros. to generate enough revenues to pay for that. There is an immediate need now
for ball fields. Tax payers are being asked to pay almost l million dollars for 22 full time
and 76 part time jobs. Tax payers are being asked to pay $245,000 for 45 parking spaces for
park and ride. In her opinion there is a greater need for metrolink station in Highgrove.
There are estimates of 140 construction jobs, will these jobs be local? The bottom line is that
we are looking to spend 1.2 million dollars get $525,000 in revenues so we have a negative
rounded up about $700,000. Her questions are how are we gaining revenues for City
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08.24: 2010
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programs. The staff report claims an increase of 22° o in sales taxes. What are they now and
what are projections. What is the debt service on the funds that we are borrowing to give
Stater Bros. She is also concerned about whether there is a Fair Political Practices
Commission ruling on City Councilmembers being recused. It seems that Councilmember
Cartes would also have a problem since she is substantially affected by the emissions more
than she would be where she Iives and Councilmember Stanckiewitz' business is basically
a whole sale business, smart time and the Grand Terrace Liquor also sell sandwiches that are
prepared and feels that they would be more affected including the donut shop. There has also
been a flyer that has been circulated in the City that she was questioned about. She needs a
clear counting of the RDA expenditures before anymore agreements are executed. She has
prepared a Freedom of Information Act Request on RDA's and presented it to the City Clerk.
Doug Wilson, 12168 Observation Drive, indicated that he is a candidate for Mayor. Back
on the 22' of April he addressed the topic of what redevelopment meant for Grand Terrace.
Amendment No. 6 to the Redevlopment Plan was on the table at that time as well as an
Environmental Impact Report covering the Redevelopment Plan and the General Plan
Update. The hot topic then was that the Agenda for that night was an Economic
Development Agreement for the Town Square. These programs are not new. The Economic
Development Agreement associated with the Town Square has been in the works for two
years, according to the Stater Bros. representatives, however, it is a little strange that the
project got approved ahead of the Development Agreement. The Council approved the
Grand Terrace Community Redevelopment Plan for the Redevelopment Area on July 22,
2004. Council approve the Implementation Plan on December 8, 2009. Council approved
the Town Square Master Plan on July 27, 2010. Staters and Jacobsen is seeking an incentive,
a Redevelopment investment in a project. The market alone is a 17.5 million dollar
investment. The community gets 20 full time and 76 part time and 140 construction jobs in
the pipeline. The community gets $105,000 per year in property taxes, a 22% plus increase
in sales tax, a new store with products and services, new business attraction and several other
redevelopment plan goals are met. The overall cost is $1,207,500 plus or minus out of
$4,600,000 available in Redevelopment Funds. Stater Bros. could have closed the old
market and everyone would have had to go down the hill until the new one was built back
on July 1, 2008, however, they elected to keep their word to the community despite that they
had to spend extra money to be able to do a month to month lease. He supports this. He
questioned how certain Councilmembers who have been beating a drum for transparency
are going to lay this one off on their fellow Councilmembers. This agreement has been in
the works about the same amount of time that certain people have been on the Council and
an Economic Panel. Surely they must have known about this and questioned what has
become of this issue. He questioned where the transparency and the accountability is now.
Frances Carter,11938 Ariiss Drive, stated that she is in favor of the Stater Bras. project. We
are such a small community and have so little area available for development and a viable
project. She participated in a workshop at least 15 years ago and community surveys were
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done asking the community want they want and need and they had to look at what was
viable. Stater Bros. is viable, a new market that would have expanded services that would
give the City additional revenue is viable, granted it's not in her back yard and maybe she
wouldn't like so well if it was, but that area has been zoned commercial as many areas in
Grand Terrace are, and we need to develop those commercially zoned areas. We don't have
a Iot of sales tax revenue or property tax revenue. She is very much in favor of the project
as a viable good development for the community. We don't need to become a City that is
not development friendly.
Sally McGuire, 12480 Nightingale Way, stated that she feels that the dispute over the Stater
Bros. project has gone on for too long. She has talked to many residents who want the
Staters completed so they can shop local instead of going to Colton for half of their grocery,
in fact some people go to Colton for all of their grocery shopping. She feels we need to
move forward and work on other issues and concerns that our citizens have and she is in
favor or working together with Stater Bros. or any other developers that want our city to
prosphor. She feels that our other concerns are our youth and high school. She stated that
she is in favor of moving forward with the Stater Bros. project.
Cynthia Bidnev, 12219 Pascal Avenue, thanked the Council for the opportunity to share her
heartfelt concerns and solutions. She directed the Council to view the photos being shown
on the screen, they are of her neighborhood what they have and what they stand to lose. The
last two slides are some solutions to their problem. At the last City Council meeting the
Council instructed Staff to set up a meeting with the neighborhood south of Stater Bros.
development as yet she has not received a notice in the mail so she is assuming that her
neighborhood hasn't either. Sending out notices just before the meeting will only ensure a
poor turnout. She would assume that the Council cares about what everyone thinks. She
did have a conversation with Joyce Powers in which she said she was shopping for plants.
She had a conversation with Mike Slater, the Developer/Real Estate Manager of Stater Bros.,
in which he said it would be possible to move the wall but he is waiting to see what Joyce
decides. The issue has always been where to put the wall, not developing the project, and
how to protect their neighborhood from the project degrading their neighborhood. Her
concerns are that the Council is set to approve an Agreement with Stater Bros. when they
have not solved the problems set forth to the Council at the last meeting. If money is the
issue, which she can't imagine since the Council just raised the RDA to 224 million to build
the infrastructure, the South side is also the infrastructure. The Council is proposing to pay
Stater Bros. employees salaries for 5 years with Redevelopment monies. The Council is so
willing to do everything in their power to please Jack Brown and the Developer Doug
Jacobsen yet they refuse to ask that the wall be set back and include the pocket park to save
the ambiance and life style of their neighborhood. Council created a no -fireworks zone
around your own homes, making it illegal to light fireworks in your neighborhoods. She is
asking that they vote to protect their neighborhood also. She feels that they have not done
their due diligence to protect their neighborhood. She feels that the citizens who will be
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living with the 6 foot wall idling diesel trucks from 7 a.m. to 10 p.m. should be compensated
financially for their loss of their legal right to quiet enjoyment, which is their implied right
when they bought their home. The Council is taking away their view of the mountains and
blocking the sunlight only to replace it with noise and pollution that they voted to be
allowable over the health limit set by approving the EIR. They are mothers and fathers who
want to preserve a safe enjoyable lifestyle for their children and their children. They want
to retain the financial value of their homes, for some of them that is their retirement. If any
of the Councilmembers lived in their neighborhood, She could bet they would not be having
this conversation. They want to be treated the way they would treat themselves. She would
like them to do their fiduciary responsibility and direct staff to build the pocket park, lower
the grade so they don't have to see the trucks. Build an enclosure around the truck delivery
area to drown out the noise and let Stater Bros. keep their own emissions.
Betty Trimble, 22816 DeBerry Street, stated that she is disappointed that the Stater Bros.
project has to be postponed this evening. The community has needed a new and improved
Stater Bros. for some time. Jack Brown has been quoted as saying "he can proceed just as
quick as the City will approve this plan." This plan has been on hold due to the recession
and to have it happen during this time is a pure gift to our City. It is a gift of gold. The
Redevelopment Funds were designed for just such a project. The store will be a new and
improved store which will provide additional jobs for our area and the new store will attract
additional retailers to move into the center once the economy gets healthier. Approving this
project is paramount to our City. Should this not go, what is that going to say to other
developers and retail projects that might want to come to our City. It's not going to send a
good message. She ended with a quote from the movie Field of Dreams "If you build it, they
will come."
Burt Seuylemezian, 22400 Barton Road, stated that he and his wife are business owners and
residents of this great town. They fully support Stater Bros. new store and the new Town
Square Center. It has been a long time coming and he hopes that the Council will see
through this and do whatever is necessary to make this happen soon, in their life times.
Claudia Ross, 11857 Holly Street, expressed her jubilance in being able to express her
support of the Stater Bros. redevelopment and finally moving forward in our life times. She
stands quite disheartened and find it quite telling that the existing, previous or tenured City
Council Members could not find this agenda item important enough to have a full quorum
today in order to be able to vote on it. She has stood quietly by in the shadows urging the
Council on as the leaders of the community. She has willed them silently and answered
surveys and watched them on television but she is no longer going to be able to stand by
quietly and let the City turn into a slum. What we are not saying is if you drive down Barton
Road it is turning into a ghetto. She is embarrassed to bring friends and family to her home.
She always looks for the directional route which will show the least amount of blight in her
community. She is begging the Council before it is too late. Put the ranker of the past
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behind, you have great new minds in the community with the addition of Betsy Adams. She
asked the Council to be the leaders that they elected. They are the best and the brightest, this
is not the time to let the community down. She requested that they please move forward with
the project and take them out of the slums.
Fran Givens, 16724 San Bernardino Avenue, Fontana, indicated that she is the Senior
Assembly member with the California Senior Legislature. She is a duly sworn -in legislator,
sworn -in by the Secretary of State. They will be having their 30" Legislative Station the last
week of October. They take over the Capitol in Sacramento. They convene in the Assembly
and Senate Chambers and utilize all of the conference rooms in the Capitol. They write
proposals. They have 79 proposals and have committees. They do testimony, etc. They will
pass 10 of those 79 proposals for the State and S for the Federal. They will be put into books
and then they visit with their legislative representative through the legislative committee and
secure their votes. They pick up their proposals put them into their bill form and walk them
on through and get them passed into law. She reported that she has been working behind the
scenes to get this bus service for Grand Terrace.
Tom Schwab, 22687 Lark Street, feels compelled to get up and talk tonight about the Council
stipends, particularly because of the accusatory tone that was taken towards the Staff and the
previous Councilmembers over their treatment of the stipends. The stipends are defined as
a reimbursement of expenses. This is the third City I have worked for and we handled it
exactly the same in those three cities. He feels that if you did a survey of local cities it would
be considered a reimbursement of expenses. There is no reason to pay pay -roll taxes on
reimbursement of expenses. There is no reason to pay unemployment, worker's
compensation, medicare or social security. It is up to each individual Council Member to,
should they choose to take that income and consider it income, they can pay social securities
on it, they could claim it and pay taxes on it, that it's up to the individual. Council Stipends
are not considered wages and we have never determined them to be wages and have never
issued a W2. He feels that what the Council is doing is just a massive waste of money to go
back and put in money for worker's comp., and medicare. He feels that no one joins the City
Council with the thought of making a pay check or to make any wages. He feels the solution
to the problem is to have no Council Stipends. He does not believe that any person runs for
City Council because they are going to get wages for it. They should be a volunteer. His
idea to run for Council is to be a volunteer, to give back to my community and he expects
absolutely no wage for it and he would like the City Council to eliminate the stipends and
then they don't have to worry about it at all. They won't have to write you a check, and the
City won't have to worry about withholding or paying pay -roll taxes and the whole thing can
be just put to bed. He takes full responsibility for 24 years of that 30 years we did not issue
W2's and no other City that I am aware of issues W2's for stipends.
Herman Hilkey, 23196 Glendora, stated that for thirty years stipends have been given to off-
set expenses. He received a bill from the City that stated that the City is going back four
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years and is forcing him to re -do his taxes. He questioned if that was going to help the City.
He feels that it is going to help one man. One man is pushing the buttons in City Hall and
we have to ask why that one man is pushing the buttons in City Hail. It was Iegal then and
it is legal now but one person wants to make an issue to get your attention. The big issue
here, and the attorney is going to have to live with this, this is the same attorney that said it
was okay for thirty years and now for some reason somebody is pushing the attorney's button
to say make it illegal. Same accounting manager, same attorney, who gets blamed, those
who served and served well. He feels that the Council is going to have to look at the
attorney, either they were wrong for thirty years or they have been right for six months. He
stated you can't be both. It is the same attorney that supported Jim Miller, it's the same
attorney that gave Bea Cortes advice, the same attorney that gave Mr, Ferrd advice. This
attorney isn't where we want it to be and this attorney has changed his mind, for some
reason, in the last couple of months. We have the same accountant and the same attorney
and now somebody wants to make it illegal. It was a reimbursement of expenses and it is a
stipend. All you have done is cost the City a great deal of money, a great deal of time to a
new Administrator and now you are going to cost him a great deal of money to re -do his
taxes for the last four years. Somebody wants to be king.
COUNCIL REPORTS
Mayor Ferrd, announced that LAFCO, Local Agency Formation Commission, has a vacancy
and as Mayor she attends a City Selection Committee Meeting to elect the next LAFCO
member. There are five people that are running for this position and she is the one that will
be voting on behalf of the Council. She requested that any of the Council Members should
let her know after the meeting if they have a preference. She reported that there was an
article in the Sun Newspaper that reported that Sandra Finnen, a former Grand Terrace
resident was promoted to a Brigadier General.
Councilmember Bea Cortes, reported that she along with Mayor Ferrd and Councilmember
Stackiewitz attended the Grand Terrace Community Soccer Club opening ceremonies. She
reported that it was a very pleasant day. She feels that they are a great organization to have
for the youth of the community.
Councilmember Walt Stanckiewitz, gave kuddos to the Sheriffs Department for
apprehending the individual that has robbed Smart Time Food Store three times. He gave
a list of tips for staying cool during this hot season and indicated that the Grand Terrace
Branch Library is a designated cooling center during regular business hours. He also
reported that the County has a 2-1-1 information line that you can dial for more information.
Stated that he feels compelled to respond to a couple of comments that were made. He
suggested that Mr. Schwab look up the definition of Stipend in a dictionary. It does not
mention anything about the word expense, it is a pay. He has a document that was prepared
i_ by a certified public accountant who reviewed what was going on and said yes it's wrong.
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It has nothing to do with the legal counsel. These were CPA's, experts in tax matters. It
wasn't ginned up. He indicated the he was the person that brought it to the Council because
he went to his accountant because he didn't know how to handle the fact that he receives
money from the City and he doesn't receive any documentation on how to report it. That is
why it became an issue. This City has never provided information to any elected official or
appointed who received a stipend that is in fact taxable income. There are responsibilities
to the individual and there are responsibilities that the City dodged. He is sorry that Mr.
Schwab gave out bad information but that is the rule of law and that is what we have to
follow and that is what he is trying to bring to this City. No more family run business.
PUBLIC HEARINGS
6A. An Ordinance of the City Council of the City of Grand Terrace, California,
Amending Chapter 2.04.020 of the Grand Terrace Municipal Code Pertaining to
Stipends for City Council Members
Cijy Manager Betsy M. Adams, reported that this agenda item is a result of information that
was learned while staff was preparing the back ground section for a Staff Report for Council
to consider a possible 10% temporary reduction in their stipends. This item first came
forward as part of the budget discussion for the Fiscal Year Budget that we are currently in.
In an effort to be consistent with Government Code 36515, the Council needs to adopt an
ordinance to amend Chapter 2.04.020 of the Grand Terrace Municipal Code. If the
Ordinance is adopted, the change in the Council stipend would become effective with the
first Council meeting next Calendar year, January 11, 2011, which is consistent with
Government Code requirements. The Agency Board stipend can be administratively
changed to the $30 per meeting not to exceed $120 per month to be consistent with Health
and Safety Code Section 33114.5. This change would become effective with the next Board
Meeting, September 14, 2010.
Mayor Ferrd opened the Public Hearing for discussion, there being none, she returned
discussion to Council.
Councilmember Cortes, stated that what she understands of some of the mistakes and errors
that have been done in this City was thirty some years ago, it was formulated by a certain
plan or program. As time goes by so do rules and changes. Every organization and City has
to apply to them. They were not aware of some of these changes and in all fairness this is
a Closed Session Item and there are only certain things that they can say. She stated that the
Council has been receiving more money then they should have been. This is an error that
should have been noticed. She stated that according to the CPA the stipends that the Council
has been receiving should have been taxed and they need to go by what the law says. She
stated that financial mistakes being discussed this evening, she feels is an embarrassment to
her City. The overpayment errors that begun in 1988 have cost several thousands of dollars.
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For these financial errors began incurring fourteen years prior to her position on the City
Council. She plans to return the money that was overpaid to her by the tax payers of Grand
Terrace. She doesn't know any of the legalities remedies but she does strongly suggest that
they have a tough new budget and oversight reforms so that none of these financial mistakes
can ever occur again. She strongly believes that we should always have accurate facts before
any of the Councilmembers makes decisions affecting the City's finances. Nothing was
intentional. She did not know there was a mistake and now she does. She stated that she
will have a plan to repay the City the money that she received over the eight years.
Councilmember Stanckiewitz, stated that it is tragic that Councilmember Cortes has come
to the conclusion and the action that she feels necessary to take because those people who
were hired to take care of this City, who were hired to take care of the elected officials
dropped the ball. Now that outside experts have been brought in who do know what they are
doing, we are discovering these kinds of errors. He doesn't feel good about them and he is
embarrassed but they have to be fixed. It has to be acknowledged that these errors have
happened and they have to be fixed. He thanked the new City Manager who has the
knowledge and expertise and the ability to go out and get help when she needs it and not
shoot from the hip. These mistakes will be fixed and he is afraid that they haven't found
everything yet and there may be more embarrassing moments. He guaranteed to everyone
that whether he is elected Mayor or remains as a City Councilmember for two more years he
is not going to stop digging and they are going to straighten this mess out.
Mayor Ferrd, stated that Councilmembers rely on the City Manager and the City Attorney for
advice. That is what they have done in the past and that is what they will continue to do. If
there is a mistake, it is going to be corrected and that is what this public hearing is about.
CC-2010-75 MOTION BY COUNCILMEMBER CORTES, SECOND BY COUNCILMEMBER
STANCKIEWITZ, CARRIED 3-0-1-0 (MAYOR PRO TEM GARCIA WAS
ABSENT), to approve the first reading of an Ordinance of City Council of the City
of Grand Terrace, California, Amending Chapter 2.04.020 of the Grand Terrace
Municipal Code Pertaining to Stipends for City Council Members
UNFINISHED BUSINESS - None
NEW BUSINESS - None
CLOSED SESSION
9A. Conference with Legal Counsel - Potential Litigation - CG 54956.9 (b)(2) and
GC54956.9 (c)
Mayor Ferrd announced that the Council met in Closed Session with Legal Counsel regarding
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08- 24.:2010
Page 10
Potential Litigation, CG 54956.9 (b)(2) and GC54956.9 (c) and there was no reportable
action taken.
Mayor Ferre adjourned the meeting at 7:36 p.m., until the next City Council Meeting which is
scheduled to be held on Tuesday, September 14, 2010 at 6:00 p.m.
CITY CLERK of the City of Grand Terrace
I Ofiv. WWR
...�.the City of Grand Terrace