05/13/1985CITY OF GRAND TERRACE
COUNCIL MINUTES
ADJOURNED REGULAR MEETING - MAY 13, 1985
An adjourned joint regular 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 13, 1985, at 5:33 p.m.
PRESENT: Hugh J. Grant, Mayor
Byron Matteson, Mayor Pro Tempore
Tony Petta, Councilman
Barbara Pfennighausen, Councilwoman
Dennis L. Evans, Councilman
Seth Armstead, City Manager
Joe Kicak, City Engineer
Myrna Erway, City Clerk
ABSENT: None
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CA,
AMENDING THE GRAND TERRACE MUNICIPAL CODE, CHAPTER 2.16, DEALING WITH
THE CITY OF GRAND TERRACE PLANNING COMMISSION (First Reading)
City Clerk Erway advised a review of the 5-9-85 Minutes revealed no
Motion was made adopting first reading of the proposed ordinance.
CC-85-100 Motion by Mayor Pro Tem Matteson, Second by Mayor Grant, to adopt
first reading of the Ordinance as amended to reduce the Planning
Commission to seven members, with two members immediately discharged,
and the remaining members to continue to serve at the pleasure of the
whole Council.
Councilwoman Pfennighausen felt the procedure for eliminating two
members will have to be addressed. It was clarified the intent of the
Motion is to eliminate two members from the current Planning
Commission.
Motion by Councilman Evans, Second by Councilwoman Pfennighausen, to
amend Motion No. CC-85- 100 to terminate the present nine members and
have all resubmit applications, if desired, and also open the
applications to the citizens. Mayor Pro Tem Matteson, with Mayor
Grant concurring, felt that 1986 is the time to consider
reappointments; felt eliminating all members at this time would
disrupt continuity.
The Motion to amend Motion No. CC-85-100 failed, 3-2, with Councilman
Evans and Councilwoman Pfennighausen voting AYE.
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Motion No. CC-85-100 carried, 3-2, with Councilman Evans and
Councilwoman Pfennighausen voting NOE.
FY 1985-86 COMMUNITY REDEVELOPMENT PRELIMINARY BUDGET
Executive Director Armstead read the City Manager's Budget Message
relative to the CRA Preliminary Budget.
LOW INCOME HOUSING RESERVE FUND
Treasurer Schwab advised the Low Income Housing Reserve Fund included
in the Fund Balance Summary requires the City to set aside a portion
of its revenues to satisfy the low income housing needs and cannot be
used for capital projects or debt service. The estimated fund balance
for June 30, 1985 is $182,919 and estimated revenues for FY 1985-86 is
$71,910.
Responding to questions, Mr. Schwab stated he understood plans were to
allow the Low Income Housing Reserve Fund to accumulate to undertake
one mass project. Mr. Evans, with Mrs. Pfennighausen concurring,
recommended a review of the Housing Element to explore establishing
programs whereby present citizens could avail themselves of potential
funding if they meet the criteria. Vice Chairman felt funds are
insufficient at this time.
Executive Director Armstead recommended having an alternate project
for funds that accumulate - a senior citizen project was discussed at
one time. Staff was directed to research and report on the matter.
CAPITAL PROJECTS FUND/DEBT SERVICE FUND
Treasurer Schwab advised revenues from the Debt Service Fund will make
the Civic Center payments and the loan to the Agency by the City.
Funds from the Capital Projects Fund can be transferred to Debt
Service Funds since there are no restrictions. School air
conditioning is not recommended this next year based on lack of
funding. Projected fund balances for the end of FY 1985-86 is $2,730
in the Capital Project Fund and $1,273 in the Debt Service Fund.
The Agency/Council discussed the CRA's financial ability to repay the
City loan. Mr. Schwab recommended establishing a policy of
maintaining a $1,000,000 reserve, which is common in cities and
businesses, for contingencies; this could be accomplished by setting
funds aside each year.
CRA CAPITAL PROJECT FUND (22) - GENERAL OPERATIONAL EXPENSES (4200)
Treasurer Schwab reviewed the estimated expenses. Mr. Evans felt
expenses for engineering should be centralized. Mr. Schwab stated
accounting procedures require segregating funds; projects must be
accounted for separately; would restructure some of the accounts to
attempt to accumulate those expenses where possible.
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CRA CAPITAL PROJECT FUND (23) - GENERAL OPERATIONAL EXPENSES (4300)
Finance Director Schwab reviewed the estimated expenses.
CRA CAPITAL PROJECT FUND (22) - VIVIENDA BRIDGE (4945)
Finance Director Schwab reviewed the estimated expenses. Responding
to Councilman Evans, City Engineer Kicak advised the estimate reflects
10% over the actual estimated cost; the City would have to share any
additional cost unless the agreement can be amended.
CRA CAPITAL PROJECT FUND (22) - AIR CONDITION CLASSROOMS (4946)
Finance Director Schwab advised the estimated cost to air condition
Terrace Hills Junior High School is $225,000; the City Manager
recommends not undertaking this project in FY1985-86.
ESTIMATED REVENUE
Finance Director Schwab reviewed the Estimated Revenue Line Items.
It was the consensus of Council to defer approval of the CRA Budget
to allow public input.
ADJOURN - The adjourned meeting adjourned at 7:20 p.m. to an adjourned
regu ar meeting to be held May 14, 1985, at 5:30 p.m. to conduct FY
� 1985-86 Budget Sessions.
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Respectfully submitted,
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City r
APPROVED:
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