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05/08/1986CITY OF GRAND TERRACE COUNCIL MINUTES REGULAR MEETING - MAY 8, 1986 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 8, 1986, at 5:41 p.m. PRESENT: Hugh J. Grant, Mayor Byron Matteson, Mayor Pro Tempore Tony Petta, Councilman Barbara Pfennighausen, Councilwoman Seth Armstead, City Manager John Harper, Acting City Attorney Joe Kicak, City Engineer Alicia Chavez, Deputy City Clerk ABSENT: Dennis Evans, Councilman Ilene Dughman, City Clerk Ivan Hopkins, City Attorney The meeting was opened with invocation by Pastor Ray Williams, Grand View Baptist Church, followed by the Pledge of Allegiance, led by Councilwoman Pfennighausen. Mayor Grant introduced Gordon Young, San Bernardino County Tax Assessor, incumbent in the upcoming election. Mr. Young thanked Mayor for introduction and complimented the City on its Civic Center. SPECIAL PRESENTATIONS Certificate of Commendation - Richard L. Jacobsen, Superintendent of Schools, o on Joint UnifiedSchool is ric Mayor Grant observed presence of Mrs. Pat Nix, President, Colton Joint Unified School District's School Board, in attendance to accept Mr. Jacobsen's Certificate of Commendation, which she will personally present to him at his retirement party on May 22, 1986; read Certificate commending his successful career. Mrs. Pat Nix, on behalf of the Colton Unified School District and particularly Mr. Jacobsen, expressed sincere thanks and praised Dick for being an outstanding educator and valuable community member. Certificate of Service, Vern R. Andress, Ph.D. Mayor Grant read Certificate of Service to Dr. Vern R. Andress for his outstanding service and contributions to the Planning Commission; personally thanked him for his many years of service, noting his Page 1 - (5 /8 /86 ) Charter membership to the Commission and that it will be forwarded to him. A RESOLUTION COMMEMORATING "DAY OF THE TEACHER" - MAY 14, 1986 0 Mayor Grant read the Resolution commemorating "Day of the Teacher," commending and honoring teachers in appreciation of their dedicated service and contributions to the education of our children; noted it will be mailed to Mr. Gal al J . Kernahan, Chairman, Day of the Teacher, Newport Beach, California. CONSENT CALENDAR The following items were removed from the Consent Calendar for discussion: 3A - Check Register No. 050886 and 3D - Minutes of 4/24/86. CC-86-99 Motion by Mayor Grant, Second by Mayor Pro Tem Matteson, ALL AYES, by all members present, to approve the following Consent Calendar items: B. Ratify 5/8/86 CRA Actions; C. Waive Full Reading of Ordinances on Agenda; E. RESOLUTION NO. 86-23 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRAE, CALIFORNIA, PROVIDING FOR THE ASSESSMENT OF CERTAIN UNCOLLECTABLE DELINQUENT SEWER USER CHARGES PLUS PENALTIES. (22140 Ladera St. - AP #277-324-10, 12548 Mirado Ave. - AP #277-223-03, 22711 Miriam Way - AP #276-223-07); F. Award and Authorize Mayor to Execute Contract (GTC-86-06) with Works Striping and Marking Service - Street Striping in the amount of $17,151.81. CHECK REGISTER NO. 050886 Following clarification of Warrant No. P4510 relative to Councilwoman CC-86-100 Pfennighausen's attendance at SANBAG meeting in Ontario, Motion by Mayor Grant, Second by Mayor Pro Tem Matteson, ALL AYES, by all members present, to approve Check Register No. 050886, as submitted. MINUTES OF 4/24/86 Councilwoman Pfennighausen requested the following change on Page 9, paragraph 2: (1) "One bedroom" be deleted from studio apartment. CC-86-101 With that modification, Motion by Councilwoman Pfennighausen, Second by Mayor Pro Tem Matteson, ALL AYES, by all members present, to approve the Minutes of April 24, 1986. PLANNING COMMISSION REPORT Planning Director/City Engineer Kicak noted the Planning Commission's May 5th meeting - next meeting will be held May 19, 1986. Page 2 - (5/8/86) Regarding the Planning Commission, Mayor Grant requested Council's determination relative to the following: (1) Future numerical composition thereof; (2) Recruitment and filling of vacancy due to Dr. Andress' resignation. Responding to Mayor Grant pertaining to the appointment of a new member to the Title 18 Ad Hoc Committee, Finance Director Schwab advised Mr. Eugene Tidwell, the next person in numerical sequence as previously selected by Council, was contacted and, subsequently, accepted the position. Mayor Grant discussed advertising vacancy on the Planning Commission and encouraged previous applicants to the Title 18 Ad Hoc Committee, as well as the public at large, to apply for the position. Councilman Petta noted the original Planning Commission, consisting of five Councilmembers, functioned well and recommended reverting back to a five -member Commission. Councilwoman Pfennighausen voiced concurrence and felt action relative thereto should be taken; however, recommended action be deferred until all Councilmembers are present. Mayor Grant concurred with above remarks, feeling a five -member Commission more manageable. Mayor Pro Tem Matteson indicated support for seven -member Planning Commission, relating the majority of surrounding cities have seven members; voiced concern with past poor attendance record of Commissioners and potential increased lack of quorums. Mayor Grant referenced policy recently established by Council which established guidelines for Commissioner's attendance to preclude attendance problems. Requested staff place item on May 22 Agenda for Council determination. City Manager Armstead related Ordinance establishing number of members on the Planning Commission would, subsequent to Council's decision, have to be modified to reflect any changes made thereby. PARKS AND RECREATION COMMITTEE REPORT - Community Services Director Anstine related meeting of Ma_y__7_,7796; advised minutes will be forthcoming at next Council meeting. Regarding inquiry by resident on opening time of Terrace Hills Community Park, Councilwoman Pfennighausen questioned City's policy. Community Services Director Anstine believed, according to the Ci ty's Ordinance regulating activities of the park, the time to be 6:00 a.m. or 7:00 a.m.; however, currently it was not opened until 9:30 a.m. due to additional duty assignments. Councilwoman Pfennighausen requested park be opened at 8:30 a.m. and Mr. Anstine foresaw no problem with compliance. Referencing citizen complaint relative to condition of park restroom, Councilman Petta questioned the poor condition of the floor and difficulty to operate flush mechanisms, feeling those problems should be investigated. Community Services Director Anstine related a graffiti protective coating was applied to the concrete fl oor and, subsequently, moisture caused it to crack - did not see it as a substantial problem; advised the flush valves are hard to press due to Page 3 - (5/8/86) the existence of high water pressure; however, would check to see if anyone had tampered with the pressure relief valves. HISTORICAL AND CULTURAL ACTIVITIES COMMITTEE REPORT - Community ervices Director Anstine related meeting held ay 5, 1986 - minutes therefrom will be forthcoming. CRIME PREVENTION COMMITTEE REPORT - Minutes of May 2, 1986 meeting were provided. O'Nealommittee member, reported the following: (1) Receipt of three outstanding applications to fill vacancies on Committee - noted one individual was approved for selection and appointment will be submitted to Council at next meeting; (2) Felt emphasis has previously been on law enforcement instead of crime prevention - advised of intention to write a manual to give Committee proper direction; noted need for a focal point to generate resources and believed that to be the Crime Prevention Officer; (3) Related need for a telephone number and direct line into the Sheriff's Office for Committee to function properly; (4) Observed $300,000 to $400,000 a year spent on Law Enforcement, which occurs after a crime has been committed - felt more funds should be expended towards Crime Prevention education programs; (5) Related importance of continuous motivation to establish Neighborhood Watch Programs, which have a life span of about 3 to 4 months; (6) Goals of Crime Prevention Committee are no burglaries in 1987; (7) Regarding upcoming Budget Sessions, requested Council consider budgeting for Crime Prevention including school education programs such as Crime Busters; (8) Voiced dissatisfaction with OCJP Crime Prevention training session, April 27-29, at the Sacramento Criminal Justice Training Center, referencing his May 2, 1986 letter relative thereto, written on behalf of the Concerned Citizens of Grand Terrace. EMERGENCY OPERATIONS COMMITTEE REPORT - City Manager Armstead related attendance with Community e N ces erector Anstine at Emergency Operations meeting in Ontario. Interested parties from various cities are requesting another meeting for the purpose of getting input relative to amending the San Bernardino County's Emergency Operation Plan; advised our input has already been given, as approved by Council. Noted problems regarding allocation of frequencies and status thereof were discussed. Meeting relative thereto to be held next month in Loma Linda. ECONOMIC DEVELOPMENT AD HOC COMMITTEE - Minutes of the April 1, 1986 meeting were provided. ounce woman Pfennighausen related attendance at the Economic Development Conference in Anaheim, April 30 - May 2, 1986; noted it was an exceptionally comprehensive, fast-moving, three-day conference; proposed legislation relative to tax-exempt bonds and ways to lessen impact of Japanese imports were discussed - will provide report when all material is correlated. Relative to the Committee's Minutes of April 1, 1986, Mayor Grant noted Jim Rigley's intent to resign due to relocation outside the City; read Jim Rigley's letter, dated April 30, 1986, wherein he resigned from the Economic Development Ad Hoc Committee and recommended a Councilmember not Chair the Committee. Page 4 - (5/8/86) Mayor Grant stated he will not support, in the future, any Councilmember serving on a citizen Committee, unless convinced otherwise, and has no intention to request to serve on a committee; ' feels Councilmembers emit an exaggerated importance. Although he will continue to attend various meetings as a citizen to remain involved, feels more harm is done by Councilmembers' mere attendance, rather than accomplishing anything advantageous. Councilman Petta indicated concurrence and suggested Councilmembers currrently serving either resign or Council take appropriate action to establish a policy that no Councilmember become a member of a committee. City Attorney Harper foresaw no problems with such action. Mayor Grant, although in full understanding of Councilman Petta' s motivation to solve the problem at hand, advised he could not, in good conscience, support a retroactive action to dismiss Councilmembers currently serving on various Committees. Councilwoman Pfennighausen concurred a Councilmember should never Chair a Committee. Referencing her assumption of duties as Secretary of the Economic Development Ad Hoc Committee, requested Committee let it be known if her presence causes a hindrance. Related the Committee elected a new Chairman - Joe Borrielli, and Vice -Chairman - Barbara Bayus. Motion by Councilman Petta, Second by Mayor Grant, that from this point forth, no member of Council would be allowed to become a member of any City Committee. Mayor Pro Tem Matteson concurred that Councilmembers should refrain from being on some citizen Committees; however, would not support Motion, feeling it too restrictive on the Council; believed, at some future point, Council may want a member to serve on a citizen Committee. Councilman Petta felt, if such a situation arose, Council could make exception and allow the individual to become a member of a particular Committee. City Attorney Harper reiterated issue as not a legal problem, but rather Council policy that can be changed from meeting to meeting. Responding to Mayor Pro Tem Matteson relative to purpose of Motion, advised it entirely a matter of policy; however, each time Council wishes to appoint a Committee member, the same consideration may be given. Mayor Grant observed that Council can change its mind anytime; however, felt if no action is taken, nothing would ever be accomplished; notwithstanding that we're all citizens of this Community, questioned why it would ever be necessary for a Councilmember to serve on a citizen Committee; noted how well citizens are able to advise Council without Council 's involvement in the decision -making process. Relative thereto, felt a slight conflict exists wherein Council requests Committee members to provide input and, if Council members serve on the various Committees, Council , ultimately, provides its own input. Page 5 - (5/8/86) The Motion failed, 2-2, with Mayor Pro Tem Matteson and Councilwoman Pfennighausen voting NOE. (Councilman Evans absent) CHAMBER OF COMMERCE REPORT - Dave Terbest, President, reported the fol I owing: equeste Council's support of Crime Prevention by participating in a Bicycle Safety Program scheduled at Terrace Hills Junior High on June 14, 1986 at 1:00 p.m. - in conjunction, the officers officially challenged the City Council in a tricycle race - Council accepted challenge; (2) May issue of Inland Empire Magazine, featuring Grand Terrace, is available for purchase - feels article gives great credibility to the City. Actual brochure is being held for distribution to developers and interested parties, as well as for promotion at trade shows; next week, during budget sessions, Chamber's booth will be on display in lobby of the Civic Center; (3) Expressed Chamber's support of "Hands Across America", May 25, 1986; advised all interested parties contact the Chamber of Commerce and encouraged participation; (4) Relative to Chamber's Newsletter (8,000 in circulation), advised of $10.00 advertising increase instituted this month. Noted space is running out and requested direction whether Council desires all five members be authorized to submit articles for the newsletter and, if so, whether additional funding would be appropriated in the upcoming budget. Stated Chamber's policy is not to print anything controversial - noted when a Councilmember writes an article, Chamber will not edit it; however, does not want to become responsible or liable for what is contained therein. Mayor Grant referenced discussion with Councilwoman Pfennighausen over concerns relative to Councilmembers writing articles in the newsletter and whether the Mayor's Corner should be the only voice heard from Council; related the Mayor's Corner traditionally was originated by Mayor Tillinghast. Was unaware of any objections to other Councilmembers expressing views on issues, therefore, had no objection to Councilwoman Pfennighausen writing an article therein; however, after reading the article, felt it fal 1 s fairly close to the neutral role of the newsletter. If Chamber is willing to allow Councilmembers to provide articles for the newsletter, Mayor Grant had no objection as long as it remains a service to the community; however, does not want it to become a platform upon which to voice independent views which attack a controversial issue within the community. Realizing objectivity is a subjective matter, expressed concern with newsletter degenerating through attrition into a political sounding board. Voiced support of the newsletter, feeling the Charmer itself has kept it nonpartisan - if Council has not, the Chamber merely printed it and, therefore, thusfar has a clean record; however, if that changes, would not support the newsletter. Mayor Pro Tem Matteson supported Councilmembers' submitting articles to let the community know their views on certain issues; however, felt each Council member should be limited in space to avoid lengthy articl es. Felt Councilmembers would maintain stature as on the Council and newsletter would not become a political arena in the future. 0 Page 6 - (5/8/86) Councilman Petta had no objections to Councilmembers submitting articles for the newsletter, believing if one individual has the opportunity, then all should be entitled. Felt Council members, being politicians, have a tendency to become political and that information can easily become slanted. Referencing article by Councilwoman Pfennighausen, believed it political and took a position whereby Council was placed in a bad light; therefore, felt it incumbent if one Council member writes an article, entire Council should have the opportunity to rebut. Observed when Councilmembers submit articles, political information is an eventuality; therefore, felt each Council member should be availed the opportunity and, if there is no censor, let the ball fall where it may. Councilwoman Pfennighausen requested the opportunity to secure copy of article before commenting; however, stated it was not meant to be political or intended to cast stones at anyone - felt the majority believe the City can continue as it has for the past 8 years and remain financially viable; noted that as a fal 1 acy and felt people should be informed. Recessed at 7:00; reconvened at 7:15 p.m., with all members present, except ouncilman Evans. CHAMBER OF COMMERCE REPORT (Cont'd) (4) Voiced willingness to print articles for all Councilmembers and continue current circulation; however, at this point, felt it an issue of available space; reiterated Chamber's position of continuing to remain non -political and not wanting to be caught in the middle - felt all concerned should exercise good judgement; (5) Advised Board of Directors approved its FY1986-87 budget and submitted a copy; (6) Related Chamber's recent expenditure of $6,000 for General Liability insurance, a 1000% increase from last year. ORDINANCE NO. 104 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, IFORNIA, AMENDING THE MUNICIPAL CODE OF THE CITY OF GRAND TERRACE REGARDING MINIMUM SQUARE FOOTAGE FOR DWELLING UNITS WITHIN RESIDENTIAL DISTRICTS (Second Reading) City Attorney Harper read title of Ordinance and outlined the following minimum square footage requirements incorporated therein: Residential dwellings in the R-1 District - 1350 square feet (clerical error noted below), and Residential dwellings in the R-2 and R-3 Districts - (1) Studio Apartment or Condominium - 800 square feet; (2) One -bedroom Apartment or Condominium - 800 square feet; (3) Two-bedrom Apartment or Condominium - 1,000 square feet; (4) Three -bedroom Apartment or Condominium - 1,200 square feet. Councilman Petta noted the following clerical error relative to R-1 Districts: Minimum square footage requirement should be reflected as 1350 square feet, opposed to 1200 square feet; Council concurred. Mayor Grant opened Public Hearing. Barnie Karger, 11668 Bernardo Way, agreed with regulating minimum square footage for residential districts; felt 1350 minimum square footage requirement for R-1 possibly a good idea, thereby placing homes in the $100,000 plus range; cited an 800 square foot apartment Page 7 - (5/8/86) and a 1,000 square foot two -bedroom apartment to be extremely deluxe, and a 1,200 square foot three -bedroom a good-sized three -bedroom house. Related builders in most other areas are constructing three -bedroom houses in the 1,100 square footage range; therefore, the proposed minimum square footages would require developers to build apartments 200 square feet larger than other cities build houses, therefore, felt more consideration should be given to issue. Rel ative to the recently adopted Ordinance regarding attached garage requirements for single and multi -family residences, believed that garages, whether one or two -car, attachment to structure should not be required, because it can distort the architectural design. Questioned effect adoption of Ordinance would have on projects already underway. City Attorney Harper related any changes to current Ordinance, if adopted, would not affect previously approved projects, due to the fact that rights have been vested; however, noted, relative to amendments to previously approved projects, the standards in effect the day on which submitted would apply. Mr. Karger felt, if minimum square footage requirements for apartments were instituted as proposed, quality would suffer and amenities evident in a high quality apartment project would be non-existent. Cited example of 2,000 square footage homes built in Grand Terrace that are poorly designed architecturally, emphasizing their largeness and low marketability; felt above items should be considered. Mayor Grant closed Public Hearing. CC-86-102 Motion by Mayor Pro Tem Matteson, Second by Councilman Petta, to adopt second reading of Ordinance No. 104, with the following correction: R-1 Districts - 1350 Square Feet. Councilwoman Pfennighausen voiced opposition to Ordinance and concern that, by placing proposed conditions on developers, end product will be of low quality; felt large homes do not insure quality and it ludicrous to have an 800 square foot studio apartment. Saw no problem with the R-1 District 1350 minimum square footage requirement, other than it being an unmarketable item; noted a track containing empty homes is a prime generator of crime; hoped Council would carefully consider contents of Ordinance and reconsider adoption. Mayor Pro Tem Matteson supported Ordinance, believing it to be a deterrent to high density and low quality homes. Agreed size does not insure quality, but felt odds in favor that superior homes would result. Councilman Petta felt size of a home did not insure good quality and observed that, although quality is not enforceable in either large or small homes, size can be restricted. Relative to studio apartments in high population cities such as New York, Los Angeles, or Chicago, every inch of space must be utilized; however, felt that not the case in this small community. Observed studio apartments in Grand Terrace as not being in conformance with the area - felt proposed minimum square footage requirements would, at least, insure adequate room for essentials such as a kitchen table. Referencing Cape Terrace Town House Apartments, cited the least desirable units are two -bedroom (940 square feet). For above reasons, expressed support of Ordinance. Fl� Page 8 - (5/8/86) Councilwoman Pfennighausen opposed considering apartments together with condominiums. Did not feel quality would be guaranteed by proposed Ordinance, observing it merely speaks to square footage requirements. Felt problem at Cape Terrace with the 950 square foot condominium units stems from people not wanting to expend funds for that type of unit; saw condominiums considerably different from apartments. Motion No. CC-86-102 carried, 3-1, with Councilwoman Pfennighausen voting NOE and Councilman Evans absent. POLICE CHIEF REPORT - City Manager Armstead related a Patrolman from the Sheriff's Department is generally on duty in vicinity of the Civic Center. FIRE CHIEF REPORT - Mayor Grant related excellent presentation at the Lions -Club y Captain Phil DeClerck, representing the California Department of Forestry, where he encouraged Californians to reject a proposition coming up on the June ballot which, if passed, could result in possible cutbacks to the County's Fire Protection. Mayor Grant and Councilwoman Pfennighausen voiced concern with issue. CITY ENGINEER REPORT - Title 18 Ad Hoc Committee - City Engineer Kicak related Committee wi 1 not meet on May 15th due to confl ict with Ci ty's budget session - revised calendars were sent to all Committee members advising of new meeting dates; felt last meeting quite productive in gaining various input pertinent to review of R-2 and R-3 Districts. CITY MANAGER REPORT - City Manager Armstead related attendance at California unicipa Treasurers Association meeting in Bakersfield at which he was awarded certification as Municipal Treasurer. Mayor Grant noted receipt of May 2, 1986 memorandum regarding establishing procedures for regulation and issuance of Home Occupation Permits, to be submitted for consideration at May 22nd meeting. CITY COUNCIL REPORTS Councilman Petta reported the following: (1) Mayor Grant's official appointment to t e Local Agencies Formation Commission by unanimous vote; Mayor Grant expressed sincere appreciation to Mayor Pro Tem Matteson, Councilwoman Pfennighausen, and Councilman Petta for Resolution of support; (2) Read April 25, 1986 letter from the California Municipal Treasurers Association, relative to City Manager Armstead's certification as Municipal Treasurer, awarded in recognition of qualifications both educationally and in experience - it was noted therein his certificate is one of only seventy-eight issued in the State of California since 1978 and one of fifty-four still current, an indication of a high level of continued education and professionalism; congratulated him on a well -deserved honor; (3) Referencing recent water rate increases, requested City staff conduct inquiries to enable provision of adequate information in response to citizen concerns. Mayor Pro Tem Matteson reported attendance at Riverside and Highland Water Company's stoc older's meeting - related it was not a meeting to discuss options on the rate increases; rather, issue seemed closed Page 9 - (5/8/86) and some questions relating thereto were bypassed, with little information volunteered. Noted only two Board members present - felt it unorganized and poorly handled. Would like to see what can be done to change the make-up of the Board, feeling it does not currently have the Grand Terrace citizens' best interests at hand; advised matter would be investigated into further. Mayor Grant reported the following: (1) Attendance at OMNITRANS and SANBAG meetings of May 7, 1986 - SANBAG presentation concerned the CAL -ID RAN system, a modernization of fingerprint analysis, credited with expediting the apprehension of the Hillside strangler in Los Angeles. Organization includes Mayor of Fontana, cities' representative, and Sheriff Floyd Tidwell, Chairman. Noted all cities are being asked to contribute based on population - Grand Terrace's share would be $6,956.00. Representative from the Sheriff's Department noted this kind of expenditure is initially set aside as a separate item, but ultimately blends into the overall Sheriff's contract; ( 2 ) Historical and Cultural Activities Art Fair to be held Sunday, May 18, 1986, from 1:00 p.m. to 4:00 p.m., free admission - encouraged participation; (3) Thanked Council for support and City Manager Armstead for letter of congratulations on his appointment to the Local Agencies Formation Commission; (4) Attended outstanding farewell salute to Mayor Harold Hayes, City of Montclair, Retired. Relative to Councilwoman Pfennighausen's letter in the Chamber newsletter, Mayor Grant expressed the following rebuttal: (1) Voiced position that, while it is essential to carefully monitor expenditure of revenues, did not feel City has reached, in any manner, a point of desperation; (2) Based upon available information from the Administrative Office, felt, although possible loss of revenue -sharing may occur at the Federal level (approximately $54,000 a year; 1.7% of City's total budget) and potential loss of CDBG funds (approximately $30,000 a year; 1.0% of budget), no cutbacks are being threatened this year in revenues from the State or County of San Bernardino; (3) Relative to proposed major cutbacks at the State level cited as potentially seriously jeopardizing fire protection through the California Department of Forestry, related Captain Phil DeClerck comments at recent Lions Club presentation, regarding if legislation passed, process would be gradual, not an overnight catastrophe; (4) Concurred property taxes have constituted a certain percentage of City's revenues; reiterated repeated concern over the vital need to create an orderly and sufficient sales and use tax base as an essential method by which the City can maintain and improve upon existing standards of service; felt situation has not changed and expressed ongoing need for above resources; (5) Regarding new estimate ($250,000) for school air conditioning, noted payment would be made from tax increment in five installments by either securing a municipal lease or issuing certificates of participation; (6) Relative to tax increment not covering the Civic Center's payment, acknowledged the General Fund has been subsidizing the Community Redevelopment Agency since creation in excess of $2 million during the life of the Agency; however, advised incurrence of that debt enables City to receive tax increment which, otherwise, would have been allocated to special Page 10 - (5 /8 /86 ) districts; noted subsidies are loans for the purpose of funding the operation and expenses of the Redevelopment Agency and not specifically for payment of debt service on the Civic Center. Related original projections indicated a few years would elapse before the CRA could operate without loans from the General Fund; advised tax increment has grown at a rate higher than expected, thereby allowing the Agency for the first year (1986-87) to operate without such loans; related the City is in the best financial condition since incorporation, noting the last long-term bond issue qualified for bond insurance with a triple "A" rating and last short-term financing received a Moody's Grade "1" rating, the highest ratings given. Reiterated importance of a firm fiscal stance, assuring the City would maintain such a position - felt it premature to put up a distress signal for whatever reason. Councilwoman Pfennighausen read her article entitled "Grand Terrace City Budget 1986/87," which appeared in the May, 1986, Grand Terrace Area Chamber of Commerce Newsletter and expressed the following in rebuttal to Mayor Grant, noting validity of points brought forth: (1) Advised past news articles substantiate proposed budget cuts at the Federal , State and County 1 evel s. (2) Based upon the loss of Federal revenue -sharing, a fact with which Council has expressed considerable concern, article stated demand upon City revenues are increasing while revenues are just maintaining, if not decreasing; (3) Relative to projected increased cost of $90,000 to $100,000 per year to add one officer around the clock and the loss of Federal revenue - sharing which could increase our Law Enforcement budget to over a half million dollars, article posed question to the community regarding where the additional funds would come from for those costs as well as ` for several major road repairs, flood control projects, and Terrace View Jr. High School's air conditioning (estimated at $220,000). Cited reason for posing question was feeling that government does not innovate, but merely responds - since the people want services, felt it important to ask from where the money would generate; (4) Relative to property taxes, one of City's major revenue sources, article related that means of income has not grown to meet service costs and needed capital improvement projects, as evidenced on the west side where storm drains are desperately needed; (5) Related funds for incentives to attract sales tax generators are non-existent, a constant issue facing the Economic Development Ad Hoc Committee, and noted Grand Terrace as having the second lowest sales tax return in the County next to Adelanto; (6) Pertaining to tax increment paying for the Civic Center, advised an additional $160,000 from the General Fund was used to supplement payment of the building; however, due to new information, noted the Civic Center would, in fact, pay for itself this year (1986-87); (7) Article emphasized importance of setting Grand Terrace on a sound fiscal base for the future to include planning, encouraging, and controlling development, without compromising integrity of quality living, and by using foresight and innovativeness in an informed and action -oriented manner. Advised entire article was not meant as a personal attack toward anyone, -- merely as statement of facts for information purposes only; believed costs are increasing greater than income and voiced concern with City 4 borrowing itself into difficulty. Page 11 - (5/8/86) Responding to Councilman Petta, in reference to the financial status of the City and the Civic Center, Finance Director Schwab noted outside rating agencies have given City the highest of ratings for both long and short-term financing. As far as providing the general services such as roads, parks, recreation, and safety, saw no cause for alarm in the community. Did foresee possible concern with funding large, long-term capital improvement projects such as storm drains; however, as far as the day-to-day operation and future financial viability, as indicated by Mayor Grant, concurred City is in the strongest financial position since incorporation. Noted last year's General Fund brought in approximately $300,000 more than expended - current reserve fund has a balance of $200,000 and an additional $200,000 has been budgeted for next year. Projected at the end of FY 1986/87 approximately $500,000 in General Fund reserves, providing the City a cushion for future events that could possibly result in decreased revenues. Did not feel citizens should be concerned with provision of general services at the level currently provided. Relative to long-term capital projects, foresaw a definite need to continue expanding all current revenue sources, thereby allowing for possible long-term capital projects in the future. "HANDS ACROSS AMERICA" EVENT (USA FOR AFRICA) - MAY 25, 1986 Community Services Director Anstine related, as of 5:00 p.m. this date, liability insurance rider had not been received by organizers of above event. Dave TerBest, President, Chamber of Commerce, advised Sandy Windbigler had been contacted by a representative, asked to help coordinate event, and assured the proper Certificate of Insurance would be secured. Although organizers of "Hands Across America" were not present, a video tape presentation was provided for viewing by Council. The nationwide event encompasses Grand Terrace on its way to New York. Brochures and maps were distributed. Both sponsors and the USA for Africa organization have assured all revenues generated by event will be utilized for the hungry and homeless in America; felt Council should take action to, at least, support project. Mayor Grant voiced concern relative to a representative from "Hands Across America" not being present to answer legal and technical questions regarding general liability. Relative to particular line assignments, Mayor Pro Tem Matteson related they would be designated by zip code, subsequent to registration - did not want to appear pessimistic, however, felt Council should take no action until proof of insurance is provided, with City Manager Armistead concurring. Mr. TerBest suggested, due to limited time element, staff and Chamber make all necessary preparations for event; noted one of the terms and conditions was the provision of 10 individuals per mile to monitor streets. Responding to Councilwoman Pfennighausen's concerns relative to necessity of closing freeway on and off ramps at Barton Road, thereby affecting I-215, Mr. TerBest clarified that route had been changed and those closures would not occur, with Mayor Pro Tem Matteson, Community Services Director Anstine, and City Engineer Kicak concurring. 0 Page 12 - (5/8/86) El Responding relative to cost of event to City, Community Services Director Anstine estimated less than $5,000. Although in support of providing homes for the homeless and food for the hungry, City Manager Armstead shared Councilwoman Pfennighausen's concern relative to cost, crime prevention, and liability insurance; noted City would have to provide 1,000 to 1,400 cones for traffic control. Councilwoman Pfennighausen voiced further concern with tremendous amount of people generated by event and potential parking problems. Concurred with Mayor Grant that representatives should have been present. Councilman Petta felt, if City's cost amounts to $5,000, then City's allocation to the Chamber would be reduced by that amount. Mr. TerBest did not foresee any significant cost to the City if volunteer manpower is recruited and cones are rented or borrowed from other non-paricipating cities whose Chambers have already pledged support. Community Services Director Anstine felt event would probably not cost the City in excess of $5,000 and possibly nothing. Mr. TerBest provided a video tape presentation on "Hands Across America," a projection of anticipated event, including signifigance of participation and information relative to sponsorship, co -hosts, and the USA for America organization itself. Mayor Grant voiced support of City's involvement with event; however, had unanswered questions and felt non-attendance of representatives a disservice to entire organization. Mayor Pro Tem Matteson did not see how Council could take action prior to receiving adequate input. Councilwoman Pfennighausen, referencing staff recommendations and contingencies contained therein, felt Council could take action to approve event with those stipulations; however, emphasized it would not occur in Grand Terrace if contingencies were not met. CC-86-103 Motion by Councilwoman Pfennighausen, Second by Mayor Grant, to approve the "Hands Across America" event to take place within the Grand Terrace City limits, contingent on the City being in receipt of all the necessary liability waiver/insurance coverage. Mayor Pro Tem Matteson requested Motion be amended to include provision of security, previously promised by the USA for Africa organization, as an additional contingency, with Maker and Second in concurrence. Page 13 - (5/8/86) Motion No. CC-86-103, as amended, carried, ALL AYES, by all present. Adjourned at 8:50 p.m. to an Adjourned Regular Joint City Council/CRA meeting, —may 14, 1986, at 5:30 p.m., to conduct a FY 1986-87 Budget Study Session. APPROVED: Respectfully submitted, L.1 er