05/14/1986CITY OF GRAND TERRACE
COUNCIL MINUTES
ADJOURNED JOINT REGULAR MEETING - MAY 14. 1986
An Adjourned Regular Joint meeting of the City Council and the Community
Redevelopment Agency 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 14, 1986, at 5:36 p.m.
PRESENT: Hugh J. Grant, Mayor/Agency Chairman
Byron Matteson, Mayor Pro Tempore/Agency Vice Chairman
(Arrived at 5:43 p.m.)
Tony Petta, Councilman/Agency Member (Arrived at 5:39 p.m.)
Barbara Pfennighausen, Councilwoman/Agency Member
Dennis L. Evans, Councilman/Agency Member
Seth Armstead, City Manager/Agency Executive Director
Thomas Schwab, Finance Director/Agency Treasurer
Joe Kicak, City Engineer
Alicia Chavez, Deputy City Clerk/Agency Acting Secretary
ABSENT: Ilene Dughman, City Clerk/Agency Secretary
Mayor Grant advised action taken during the Budget Sessions were not
binding and could be amended prior to final adoption of the FY 1986/87
Budget.
CITY MANAGER'S BUDGET MESSAGE FY 1986/87
City Manager Armstead read the City Manager's Budget Message (on file
in the City Clerk's office), which projects the revenues, excluding
CRA, to be $2,698,519 and expenditures to be $2,889,076; current year
unappropriated fund balance for all funds combined is $105,443.
Commended Council/Agency Members for efficiently managing funds in
past years.
Councilman Petta arrived at 5:39 p.m.
Mayor Grant recommended covering line item of each Budget unit.
Mayor Pro Tem Matteson arrived at 5:43 p.m.
CRA - CAPITAL PROJECTED FUND 32
General Operational Expenses - 32-200
Treasurer Schwab reviewed and clarified Line Item recommendations.
Economic Develo ment Committee - 32-200-700 - Mr. Schwab noted the
recommended or Line Item conomic Development Committee,
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was based on figures prior to advertisement in the Inland Empire
Magazine; felt it should be increased to $2,000. Vice Chairman
Matteson indicated concurrence. Mr. Schwab noted $1960 had been
expended to that date, which was for photography and advertising
expenses for the May issue of the Inland Empire Magazine.
Mr. Petta saw no need for additional expenditure for magazine
advertising since the existing material can be utilized. Responding
to Vice Chairman Matteson relative to the additional funds being for
promotion, felt that amount would not be adequate; felt advertising
not effective; recommended hiring a professional consultant. Chairman
Grant stated he concurred with Mr. Petta to some extent; noted the
County Board of Supervisors hired a consultant on a pay -by -result
basis; felt RFP's could be so stipulated; felt the Committee
involvement commendable. Vice Chairman Matteson felt Committee needs
a professional person and funds in order to operate.
Motion by Vice Chairman Matteson, Second by Mrs. Pfennighausen, to
increase Account No. 32-200, Line Item 700, Economic Development
Committee, from $1,000 to $2,000.
Mr. Petta felt $2,000 not adequate and it should remain at $1,000
until such time the Committee approaches the Agency with additional
request and specifics of how funds would be utilized.
Responding to Mr. Evans' request, Mrs. Pfennighausen outlined
accomplishments of the Committee to this point. As a member of the
Committee, is somewhat frustrated and apprehensive, feeling she has
been doing all the work. Felt that, if the Committee is to continue,
it should establish new goals. Mr. Evans recommended consideration be
given to disbanding the Committee, feeling it has been non-functional;
opposed hiring a consultant citing past results; felt it can be done
by the City without spending excessive funds. Mr. Matteson felt any
failure is Council /Agency fault; felt members should have been
appointed in the same manner as the Title 18 Committee; recommended it
be reorganized - it is needed politically.
The Motion failed 1-4, with Mr. Evans, Mrs. Pfennighausen, Mr. Petta,
and Chairman Grant voting NOE.
CRA-86-22 Motion by Mr. Petta, Second by Chairman Grant, to disband the existing
Committee and seek new individuals from the Community with expertise,
then allow that Committee to make recommendation to Council regarding
a consultant if it chooses.
Mrs. Pfennighausen, with Mr. Petta indicating concurrence, stated
that, however the Committee is reorganized, it will require funds.
Chairman Grant advised the Motion is to disband the Committee.
Motion No. CRA-86-22 carried, ALL AYES.
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Responding to Chairman Grant's notation that Line Item 700 is removed,
Mr. Petta stated that was not his intention; requested continuing the
discussion. Chairman Grant stated the matter would be continued at a
later time.
Air Condition Classrooms (32-946)
Finance Director Schwab noted the City agreed to the classroom air
conditioning in a Settlement Agreement with Colton Joint Unified
School District; advised that the City Manager is recommending the
Agency appropriate $70,000 in this Budget to allow for certificates of
participation or a municipal lease, over a five-year period, to
finance the Terrace Hills Jr. High School air conditioning. The
estimated cost is $250,000; however, it would require borrowing
$290,000 to structure the COP issue. Estimates between $300,000 -
$350,000 total cost over the five-year period including interest.
Chairman Grant noted the Agency is in receipt of the May 6
correspondence from members and parents of the Junior High School.
Mrs. Pfennighausen stated there had been some misunderstanding that
she was not in favor of the air conditioning project resulting from
her article in the Chamber Newsletter; advised she has sent letters to
students, parents, and teachers assuring them she was initially and
still is in favor of the project - hopes the misunderstanding is
cleared up; the only issue now is to determine how to finance; felt
Staff's recommendation a waste of money.
Mr. Evans felt the City must take care of priorities and is in a
financial bind due to construction of the Civic Center. Opposed
recommendations to fund over five years; favored foregoing $200,000
contingency fund this year and apply $200,000 to the proposed air
conditioning appropriation. Vice Chairman Matteson disagreed, feeling
funds must be reserved for emergencies.
CRA-86-23 Motion by Vice Chairman Matteson, Second by Mr. Petta, to approve the
appropriation for Air Condition Classrooms, Account 32-946-255, in the
amount of $70,000.
Mr. Petta concurred with importance of maintaining a reserve; felt the
cost to fund over five years is not excessive; noted interest on the
reserve is higher than financing rate.
Mrs. Pfennighausen noted tax increment revenue increases as property
changes hands and development of vacant property. Noted tax increment
revenue was not sufficient to make payments on the Civic Center prior
to this year and required additional funds; felt development is at a
stalemate and no commitment to enhance development to increase tax
increment revenue will cause City to go into deficit spending; wants
assurance money will be available for projects. Supports the air
conditioning project, but not the methods recommended for financing.
Mr. Petta objected to inference that the Planning Commission is not
adequately performing its function, resulting in anti -development -
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felt they are seeking quality development such as now exists. Fel t
Staff recommendation is utilizing common sense.
Vice Chairman Matteson called for the question.
Motion by Mr. Petta, Second by Chairman Grant, to overrule the Call
for the Question, failed, 2-3, with Mr. Evans, Mrs. Pfennighausen, and
Vice -Chairman Matteson voting NOE.
Motion No. CRA-86-23 carried 3-2, with Mr. Evans and Mrs.
Pfennighausen voting NOE.
Responding to Mr. Petta relative to the two options, Certificates of
Participation and the Municipal Lease, Treasurer Schwab clarified the
final yield of both would be approximately 8%; interest earned on the
current General Fund Reserve is approximate 8-1/2%, which, if it
remains the same, would result in a positive arbitrage; a decrease in
interest would result in a negative position; Staff's opinion is that
interest will increase.
Debt Service - 33-300
Mr. Evans noted tax increment revenue is sufficient to make annual
Civic Center payment this year for the first time. Responding to Mr.
Evans, Treasurer Schwab estimated the CRA could possibly repay City
the $2 Million Dollars plus interest over the next 10 years; noted
there is no hurry unless other projects are anticipated since the
outstanding debt is needed to acquire the tax increment revenue. Mr.
Evans noted the loans were for capital improvements - cited storm
drains as a needed capital improvement that could qualify for tax
increment funding; however, can't be accomplished unless an assessment
district is formed. Felt the $2 Million Dollars could help accomplish
needed capital improvements.
Vivienda Bridge - 32-945
City Engineer Kicak reviewed the Line Item recommendations.
CITY GENERAL FUND (10)
Emergency Operations Center - 10-808
Finance Director Schwab felt more competitive prices could be obtained
for the proposed equipment and recommended reserving that task for the
Purchasing Department. Mayor Pro Tem Matteson concurred; recommended
the Finance Department monitor all purchases for the City. Community
Services Director Anstine noted the figures were merely estimates by
the Committee; briefly reviewed and clarified the commentary
explanations.
Ed Luers, Committee Chairman, responding to Mayor Pro Tem Matteson
relative to purpose of five generators, advised they are to service
four planned quadrants of the City in emergencies, with one as a
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[i]
spare. Councilwoman Pfennighausen opposed unnecessary spending;
4 however, noted volunteers are putting together an emergency operations
system for the City with a minimum amount of money.
Based on feeling the generators could be purchased for less, Motion by
Mayor Pro Tem Matteson, Second by Councilman Petta, to reduce the
amount proposed for five generators from $5,000 to $3,000. Mayor
Grant expressed reluctance to reduction at this time not knowing what
is required; stated Staff will provide a firm cost; felt that
information is need as soon as possible. Mayor Pro Tem Matteson felt
specific costs should be explored prior to requesting appropriations.
Councilwoman Pfennighausen felt too much emphasis is given to this
type of purchase; noted cost would depend on quality; any excess would
return to the General Fund.
The Motion failed, 2-3, with Councilmembers Pfennighausen, Evans, and
Mayor Grant voting NOE.
Mayor Grant concurred the importance of the Committee can not be
underestimated; recommended Committee coordinate with Sheriff's
Department as well as the Crime Prevention Committee.
Recessed at 7:15 p.m. and reconvened at 7:25 p.m.
Council - 10-110
Finance Director Schwab reviewed and clarified the Line Item
recommendations.
Council Local Mileage - 10-110-120 - Based upon there never being
requests by Council for mileage -reimbursements and noting the intent
CC-86-104 of Council stipends is to cover expenses incurred, Motion by
Councilwoman Pfennighausen, Second by Councilman Evans, ALL AYES, to
eliminate Line Item 271 from Account 10-110 - Council, leaving a Grand
Total of 20,400.
City Manager - 10-120
Finance Director Schwab reviewed and clarified Line Item appropriation
recommendations; regarding Line Item 110 - Salary, in all Department
Personnel, advised no cost of living increases are being requested;
however, appropriations include amounts for merit increases, if
warranted. It was clarified that the City Manager makes the final
determination for all employee salary increases and Council determines
salary increase for the City Manager.
Disability Insurance - Line Item 143 (All Department Personnel) -
Council questioned and FinanE_e771r_ec_For Schwab advised, ! -approved,
Line Item 143, Disability Insurance, which has been added, would
r_ provide income for employees who incur a disability off the job;
F outlined the coverage. Councilman Evans voiced non-support; felt
employees should pay that coverage. Mr. Schwab advised this
particular plan requires 100% participation.
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Mayor Pro Tem Matteson and Councilwoman Pfennighausen indicated
concurrence with Councilman Evans; Councilwoman Pfennighausen
recommended employees either fund such a program themselves or
participate in Social Security.
Mayor Grant left the Council Chambers at 7:45 p.m.
Finance Director Schwab stated that, if Council does not approve Line
Item 143, employees would be approached to see whether 100%
participation can be achieved.
CC-86-105 Motion by Councilman Evans, Second by Councilwoman Pfennighausen, to
eliminate Line Item 143 from all Departments.
Mayor Grant returned at 7:59 p.m. and received clarification of the
Motion.
Councilman Petta felt the high quality of employees has allowed the
City to function with minimum staff; felt this benefit would create
additional incentive at a minimum premium; therefore, would not
support the Motion. Mayor Pro Tem Matteson and Councilwoman
Pfennighausen concurred the City has valuable employees; Mayor Pro Tem
Matteson noted the recent salary and job classification adjustments
made - this would be additional expense over and above that.
Councilwoman Pfennighausen noted last year's addition of the paid
health insurance; concerned about yearly added costs for benefits;
reouested and received a cost breakdown of City's and employees' costs
for PERS and Social Security.
Motion No. CC-86-105 carried 3-2, with Mayor Grant and Councilman
Petta voting NOE.
City Clerk - 10-125
Finance Director Schwab outlined and clarified Line Item appropriation
recommendations. It was noted that Line Item 143, Disability
Insurance, is deleted (see Motion No. CC-86-105).
Relative to Line Item 110, Councilwoman Pfennighausen questioned the
increase in salary for the Minutes Clerk; felt it excessive. It was
clarified the increase over last year's appropriation was due to that
position not constituting a full-time position for that entire fiscal
year, and it allows for a possible merit increase at the next
evaluation review. Mayor Pro Tem Matteson felt Council must
constantly monitor salaries.
Finance Director Schwab clarified that the increase in Line Item 250,
Professional and Special Services, was due to an increased amount of
amendments to the Municipal Code that would be required. Rel ative to
Line Item 601, Microfilming, the appropriation for FY 1985/86 was not
utilized and was transferred to another department at the mid -year
budget review; Councilman Evans questioned and Mr. Schwab advised the
City Clerk requested the appropriation to allow implementation of the 11
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project before her anticipated retirement in December or by the new
City Clerk.
Finance - 10-140
Finance Director Schwab reviewed and clarified Line Item appropriation
recommendations. Line Item 143 was removed by previous action (Motion
No. CC-86-105).
City Attorney - 10-160
Finance Director Schwab reviewed and clarified Line Item appropriation
recommendations.
Relative to Line Item 250, Special Departmental Expense, clarified the
FY 1985-86 appropriation had been increased by mid -year adjustment;
Councilman Evans suggested some type of explanation within the Budget
of any additional appropriation made during the previous fiscal year;
Mayor Grant suggested another column for those departments having
adjustments. Mr. Schwab reminded Council that the City Attorney now
regularly attends Planning Commission meetings, resulting in the
increase over previous years. Councilman Evans felt it would be
beneficial to indicate amount expended for the Planning Commission.
Mayor Pro Tem Matteson noted it was requested during the last year's
budget sessions to show only the total amount, and felt it should
remain that way.
CITY ENGINEER ALL DEPARTMENTS
City Engineer - 10-170
Finance Director Schwab reviewed and clarified Line Item appropriation
recommendations.
Councilman Evans questioned the purpose for the separate revenue
producing account, Line Item 255. City Engineer Kicak advised it
relates to matters of general public interest and not to specific
projects. Saw no problem in combining if Council preferred.
City Manager - 10-120
Finance Director Schwab reviewed and clarified the Line Item
appropriation recommendations.
Public Works - Engineering - 10-610/Building & Safety 10-330
City Engineer Kicak clarified the increases in Department 610 and 330
are due to increased development anticipated in the next couple years.
Wastewater Disposal - 10-572
Finance Director Schawb clarified the appropriation request. City
Engineer Kicak advised that some of the increase in this Account is
due to the increased development proposed.
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Non Departmental - 10-190
Finance Director Schwab outlined and clarified each Line Item
appropriation request. 0
Chamber Newsletter/Chamber of Commerce Grant - 10-190-222 - Relative
to Line Item 222, Chamber News etter hamber o Commerce Grant, Mr.
Schwab advised that, since the preparation of the Preliminary Budget,
the Chamber has requested an increase in appropriation from $30,000 to
$40,000. Mayor Grant noted discussion relative to the Chamber
Newsletter at the May 8 meeting.
Dave TerBest, Chamber of Commerce President, advised that last year's
grant was not only for the Newsletter; noted a copy of the Chamber's
Budget was submitted at the May 8 Council meeting; outlined Chamber's
projects, including the booth on display in the foyer; additional
funds are required to improve existing projects and the increased
circulation of the Newsletter, which is approximately 1/3 of the
Budget. Will expand the Newsletter, if Council desires, and will
attempt to keep it non -partisan. Concerned about increasing insurance
cost; will have fund raisers to seek additional funds, if required;
felt their Budget is reasonable in view of increasing expenses.
Mayor Grant noted the increase is approximately 34%; assumed $36,000
would go toward the Newsletter - Mr. TerBest responded that the
Chamber spent approximately $23,600 for the Newsletter and Economic
Development during the last year. Mayor Grant stated the alternatives
to be considered by the Council regarding cost of the Newsletter are:
(1) to allow all Council to submit articles, saying what they wish,
controlling themselves in terms of partisan comments; (2) to allow the
articles with a limit on space; (3) to maintain only the Mayor's
Corner, which Mayor Grant did not recommend, feeling it unfair; (4)
not allow any Council articles. Mayor Grant noted Mr. TerBest favors
having Council articles; however, felt it would be difficult to
control and interpret what is non -partisan.
Councilman Evans questioned and Mr. TerBest responded the circulation
is now 8,000, 1,000 of which is for the business community.
Councilman Evans disagreed that Councilwoman Pfennighausen's article
was political - felt some of the Mayor's articles were; supported all
members be allowed to submit articles or eliminate the Mayor's;
otherwise, Council should be allowed to review the Mayor's Corner
before it is submitted. Recommended eliminating the Mayor's Corner in
its entirety as well as any Council articles.
Mayor Pro Tem Matteson voiced concurrence with Councilman Evans on
this issue, especially in view of the upcoming election; in
researching the past week, found most surrounding chambers of commerce
seek independence from cities and most receive no funding; felt the
Grand Terrace Area Chamber of Commerce should not seek direction from
and depend upon the City. Had anticipated reducing this year's grant,
rather than increasing. Felt the Chamber has done a fantastic job,
but must operate within its means the same as the City; recommended
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having the Newsletter printed at a lesser cost, feeling the increased
circulation is justification; doesn't see necessity of printing
another map this soon; felt salaries too high.
Councilman Petta supported assisting the Chamber to promote economic
development but felt what has been done in the past is not bringing in
revenue. As far as a future Econcomic Development Ad Hoc Committee,
felt there are individuals in the community with talent to serve on
that Committee and work in conjunction with the Chamber. Based upon
that, could support assisting the Chamber financially.
Mr. TerBest, responding to Mayor Pro Tem Matteson, felt reducing
printing cost would result in reduced quality and effectiveness; does
not want to separate the business community from the political
community; noted printing the maps raised funds through
advertisements; does not feel he can reduce personnel and office
expenses. Mr. TerBest cited efforts to bring development; stated they
could get along with $30,000; however, can accomplish more with the
additional $10,000.
Mayor Grant stated that Councilman Evans confirmed his previous
comments that objectivity or subjectivity is in the eyes of the
beholder.
CC-86-106 Motion by Mayor Grant, Second by Mayor Pro Tem Matteson, to not allow
any more articles to be printed in the Chamber Newsletter by any
Councilmember, including the Mayor, and, in the future, all articles
contributed in the City section be totally produced by the staff of
the City - that no Councilmember can in any way be involved in
infl uencing staff in the production of material to be submitted to the
editor of that Newsletter.
Councilman Evans supported the Motion except objected to staff
preparing the news articles. Relative to quality of Newsletter,
concurred with Mr. TerBest since they could not be referred to in
future years due to quality; felt the press has not adequately
provided information to, the community - questioned whether it is
possible to have articles prepared by an impartial party, other than
staff, summarizing what took place at Council and Planning Commission
meetings and reflecting reasons for positions taken. Commended Mr.
TerBest for tasks undertaken this year; however, concerned about
appropriating additional funds.
Mayor Grant felt the responsibility of preparing the news articles
should be that of staff. Mayor Pro Tem Matteson, with Mayor Grant
concurring, found staff to be impartial. Councilman Petta noted
City of Cerritos' success with its news releases; suggested obtaining
its policy. Councilwoman Pfennighausen objected to suppressing
individuals from expressing views and the issue made regarding her
Newsletter article - felt it is being criticized because it came from
her. Mayor Grant felt previous news articles devoted to City business
prepared by Myrna Erway and Ilene Dughman were very fair and
objective; felt Council has obligation to taxpayers to keep the
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Newsletter non -partisan. Councilman Evans stated he had no objection
to the Chamber obtaining articles pertaining to calendar of events.
Motion No. CC-86-106 carried, 3-2, with Councilmembers Evans and
Pfennighausen voting NOE.
CC-86-107 Motion by Mayor Pro Tem Matteson, Second by Councilman Evans, to
allocate the Chamber of Commerce the same grant as in previous year,
$30,000. Councilman Petta reiterated his previous statements; would
not object to additional funding later if the Charmer became involved
in projects that were financially productive for the City. Mayor
Grant, based upon the increased circulation in the outlying areas that
do business in the City, voiced support of the requested $40,000.
Motion No. CC-86-107 carried, 4-1, with Mayor Grant voting NOE.
Adjournment - CRA - The Community Redevelopment Agency adjourned at
p.m. a next regular meeting will be held on May 22, 1986, at
5:30 p.m.
CC-86-108 Adjournment - CC - Motion by Mayor Pro Tem Matteson, Second by
Councilwoman ennighausen, ALL AYES, to adjourn the Adjourned Regular
Joint City Council/CRA meeting at 9:37 p.m. to an Adjourned Regular
City Council meeting on May 15, 1986, at 5:30 p.m.
Respectfully submitted,
ity Clerk
APPROVED:
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