04/05/1984CITY OF GRAND TERRACE
COUNCIL MINUTES
JOINT ADJOURNED REGULAR MEETING - APRIL 5, 1984
A joint adjourned regular meeting of the City Council and the Community
Redevelopment Agency of the City of Grand Terrace was called to order at the
Terrace View Elementary School, 22731 Grand Terrace Road, Grand Terrace,
California, on April 5, 1984, at 5:37 p.m.
PRESENT: Hugh J. Grant, Mayor
Jim Rigley, Mayor Pro Tempore
Tony Petta, Councilman
Roy W. Nix, Councilman
Barbara Pfennighausen, Councilwoman
Seth Armstead, City Manager
Ivan Hopkins, City Attorney
Joe Kicak, City Engineer
Myrna Erway, City Clerk
ABSENT: None
The meeting was opened with invocation by Councilman Nix, followed by the Pledge
of Allegiance, led by Councilman Rigley.
CAPITAL IMPROVEMENT PROJECTS - FY 1984-85
Tom Schwab, Finance/Administrative Services Officer, reviewed the
additional information requested by Council at the March 1, 1984
meeting, as outlined in the Staff Report, as follows:
Historical Tracking Record of Revenues/Expenditures since
incorporation - a fund balance was accumulated in the first four
years; some of that accumulated reserve was spent in 1982-83, since
expenditures exceeded revenues by approximately $400,000, due to
construction of the fire station, leaving a total fund equity of
approximately $600,000 for the City and CRA at the end of FY 1982-83.
Method used to estimate revenues - revenues are estimated based on
historical performance and county, state and federal information
relative to property tax, sales tax, subvention funds and revenue
sharing. The estimated revenue for FY 1984-85 is $2,579,459; this
estimate does not include any revenue which could be derived from
proposed legislation.
Analysis of AB 2468 and SB 1300 - AB 2468 could increase revenue to
the City of $162,000 per year, and SB 1300 could provide a $133,000
increase; a modified version of one of these proposed Bills is
expected to pass; the increased revenue was not included in the City's
estimated revenue since the results will not be known until August.
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Summary of CRA Revenues/Expenditures and Five -Year Projection - The
present major CRA revenue source is funding loaned from the City to
create debt; the tax increment will be large enough to pay the debt
service on the Civic Center in FY 1987-88; if the tax increment flows
as projected and the City maintains the ability to loan funds to the
CRA, a maximum of $429,913 could be available for capital improvement
projects in FY 1984-85.
Council questioned how the City can fund the $500,000 Vivienda Bridge
Project, since the project must be initially funded by the City, with
80% of the cost to be refunded upon completion; Mr. Schwab advised tax
participation notes could be obtained to even out the cash flow;
$1,000,000 could be borrowed at 7 1/2% and invested until needed at
the current interest rate, which is presently 10%; indicated this
possibility is being pursued and will be presented to Council for
consideration; felt sufficient funds could be accumulated to front the
project if it were started in December or January. Councilman Rigley
felt project approval should be contingent upon obtaining tax
participation notes; Councilman Nix felt the project should be pursued
while 80% funding is available.
Impact on City of proposed legislation relative to State -mandated
costs - the only area which would affect the City is the Workers
Compensation portion, which if passed, could increase revenue by less
than $500 per year.
School Air Conditioning - City Engineer Kicak stated Richard Jacobsen,
Colton Joint Unified School District Superintendent, advised this
project could not be completed prior to the beginning of next school
year, but felt work could be completed during the year without
disturbing classes; the District will determine the scope of the
project once the amount of City funding is established; the District
estimates the cost to air condition one school at $140,000-$150,000.
Mayor Grant questioned and City Engineer Kicak responded that the
estimated cost to install storm drains from the vicinity of the
railroad tracks to Michigan would exceed $600,000. Council discussed
possible funding alternatives and determined sufficient funding would
not be available to begin the storm drain project until FY 1987-88;
Mr. Kicak stated increasing construction costs could increase the
previous estimate to $700,000 for the bottom portion of the storm
drain system, with the total storm drain project estimated at
$4,0009000.
CC-84-60 Motion by Councilman Rigley, Second by Councilman Nix, ALL AYES, to
postpone the storm drain project; approve a $300,000 loan from the
City to the CRA in FY 1984-85; and to budget $140,000 for classroom
air conditioning and $109,000 for the Vivienda Bridge Project in FY
1984-85.
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Councilwoman Pfennighausen, with Councilman Nix concurring,
recommended advising the School District that the school facilities,
once air conditioned, should receive maximum year-round utilization,
due to the cost of air conditioning the facilities, and should
minimize the requirement for building additional facilities to relieve
impaction.
ADJOURN - the adjourned regular meeting adjourned at 6:53 p.m. The
next regular meeting will be held at 5:30 p.m. on April 12, 1984.
Respectfully submitted,
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APPROVED:
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