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02/08/2011 w�trr ItptlD TE February 8,2011 22795 Barton Road Grand Terrace California 92313-5295 Civic Center CITY OF GRAND TERRACE (909)824-6621 Fax(909)783-7629 Fax(909)783-2600 CRA/CITY COUNCIL Wait Stanckiewitz Mayor REGULAR MEETINGS Lee Ann Garcia 2ND AND 4TH Mayoror Pro Tem Tuesday - 6:00 p.m. Bernardo Sandoval Darcy McNaboe Gene Hays Council Members Betsy M.Adams City Manager 0 Council Chambers Grand Terrace Civic Center 22795 Barton Road Grand Terrace, CA 92313-5295 CITY OF GRAND TERRACE COUNCIL MEETING AGENDA CITY COUNCIL CHAMBERS February 8,2011 GRAND TERRACE CIVIC CENTER Workshop at 4:30 p.m. 22795 Barton Road Meeting at 6:00 p.m. THE CITY OF GRAND TERRACE COMPLIES WITH THE AMERICANS WITH DISABILITIES ACT OF 1990. IF YOU REQUIRE SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING,PLEASE CALL THE CITY CLERK'S OFFICE AT (909)824-6621 AT LEAST 48 HOURS PRIOR TO THE MEETING. IF YOU DESIRE TO ADDRESS THE CITY COUNCIL DURING THE MEETING,PLEASE COMPLETE A REQUEST TO SPEAK FORM AVAILABLE AT THE ENTRANCE AND PRESENT IT TO THE CITY CLERK. SPEAKERS WILL BE CALLED UPON BY THE MAYOR AT THE APPROPRIATE TIME. ANY DOCUMENTS PROVIDED TO A MAJORITY OF THE CITY COUNCIL REGARDING ANY ITEM ON THIS AGENDA WILL BE MADE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK'S OFFICE AT CITY HALL LOCATED AT 22795 BARTON ROAD DURING NORMAL BUSINESS HOURS. IN ADDITION,SUCH DOCUMENTS WILL BE POSTED ON THE CITY'S WEBSITE AT WWW.CITVOFGRANDTERRACE.ORG * Call to Order- * Invocation- * Pledge of Allegiance- * Roll Call- STAFF COUNCIL AGENDA ITEMS RECOMMENDATION ACTION 4:30 P.M. JOINT WORKSHOP CITY COUNCIL/PLANNING COMMISSION 1. Canal Village Affordable Housing Complex 6:00 P.M. CONVENE COMMUNITY REDEVELOPMENT AGENCY 1. Approval of O1-25-2011 Minutes Approve 2. Public Improvements for Barton Road,Michigan Street,and La Paix Receive Street 3. Resolution Making Certain Findings and Authorizing the Use of Approve Agency Funding for the Reconstruction of Mt.Vernon Avenue During Fiscal Year 2006-2007, thereby Reducing the Amount Owed to the Agency by the General Fund by$819,235.00 4. Resolution Approving FY 2010-11 SERAF Payment Adopt 5. Potential Fiscal Impacts of Governor's Proposed 2011-12 Budget Receive ADJOURN COMMUNITY REDEVELOPMENT AGENCY CONVENE CITY COUNCIL 1. Items to Delete 2. SPECIAL PRESENTATIONS A. Colton High School Football Team Recognition B. Recognition of Winter Storm Emergency Response Workers COUNCIL AGENDA 02-08-2011 PAGE 2 OF 2 AGENDA ITEMS STAFF COUNCIL RECOMMENDATIONS ACTION 3. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without discussion. Any Council Member,Staff Member,or Citizen may request removal of an item from the Consent Calendar for discussion. A. Approve Check Register No.02-08-2011 Approve B. Waive Full Reading of Ordinances on Agenda C. Approval of Minutes of 01-13-2011 and 01-25-2011 Approve D. Amendment to Waste Delivery Agreement Between the City of Approve Grand Terrace and the County of San Bernardino E. Senior Center Kitchen Remodel Change Orders Appropriate F. Resolution Malting Certain Findings and Authorizing the Use of Approve Agency Funding for the Reconstruction of Mt.Vernon Avenue During Fiscal Year 2006-2007,thereby Reducing the Amount Owed to the Agency by the General Fund by$819,235.00 G. Potential Fiscal Impacts of Governor's Proposed 2011-12 Receive Budget 4. PUBLIC COMMENT This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law,the City Council may not discuss or act on any item not on the agenda,but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public continent or may request a matter be agendized for a future meeting. 5. COUNCIL REPORTS 6. PUBLIC HEARINGS-None 7. UNFINISHED BUSINESS-None 8. NEW BUSINESS A. Section 125 Plan Approve;Adopt B. First Quarter and Second Quarter Financial Review Accept/File 9. CLOSED SESSION-None ADJOURN THE NEXT CRA/CITY COUNCIL MEETING WILL BE HELD ON TUESDAY,FEBRUARY 22,2011 AT 6:00 P.M. AGENDA 1TEM REQUESTS MUST BE SUBMITTED IN WRITING TO THE CITY CLERK'S OFFICE NO LATER THAN 14 CALENDAR DAYS PRECEDING THE MEETING. CALIFORHIA AGENDA REPORT MEETING DATE: February 8, 2011 Council Item( X ) CRA Item ( X ) TITLE: Joint City Council/CRA and Planning Commission Workshop Canal Village Affordable Housing Complex PRESENTED BY: Joyce Powers, Director of Community and Economic Development Sandra Molina, Senior Planner RECOMMENDATION: Conduct a public workshop on the proposed Canal Village Apartments and provide direction to staff. BACKGROUND AND DISCUSSION Staff has been working with Mr. Darryl Moore, of Aegis Builders Inc., on the development of a 23-unit affordable housing rental complex at 11695 Canal Street. The application was submitted Qon November 5, 2009, and a contract has been executed for the environmental work. The proposed construction of 23 apartments geared toward families earning below the median income would help the City fulfill goals of the Housing EIement, including needed affordable housing units to accommodate the City's housing allocation. Housing Element The City's Housing Element was adopted on April 27, 2010, and it has been certified by the State of California Housing and Community Development Department (HCD). The Housing Element is updated every five years to coincide with a Regional Housing Needs Assessment (RHNA) conducted by the Southern California Association of Governments (SCAG). The RHNA considers the anticipated population growth in the Region, and assesses each city and county an allocation of that growth by household income levels. The Housing Element contains an assessment of housing needs, and an analysis of resources and constraints to the production of housing for all economic segments of the community. The analysis considers population and employment trends; household characteristics (e.g. household composition, age, income, overcrowding, affordability, overpayment, etc.); housing characteristics (e.g. age, construction activity, etc.), constraints to development (e.g. market forces, land costs, construction costs, city codes, city fees, etc.); the needs of special housing groups (e.g. seniors, isabled, homeless, large family households, female-headed households) and includes an Joint Workshop Item No. 1 Agenda Report Page 2 of 5 inventory of residential land suitable for residential development in relation to the RHNA allocation. The inventory demonstrated that there is sufficient residential land to accommodate the expected growth. As shown in the Housing Element, it also demonstrated that based on approved and built residential projects, including the Blue Mountain Senior Villas, 329 units are being provided. The following table lists our target number of units in each income category; the number of units either approved and/or constructed; and the number to be constructed during the Housing Element Planning Period. Household Income RHNA Number of Units Number of Units Category Target Already Needed During 2008- Constructed/Approved 2014 Planning Period Extremely Low/Very 80 72 8 Low 1 Low 55 36 19 Moderate 63 109 0 Above-Moderate 131 121 to Total 329 338 37 Housing Law requires 50%of the Very Low allocation to be affordable to extremely low households. Source:Table 8.37 2010 Housing Element This inventory shows that 27 additional units still need to be constructed in the Extremely/Very Low income category, and 10 units for the Above-Moderate income category. It is assumed that the market will provide housing for the above-Moderate income household category. Therefore, it is the 27 units that were of concern to HCD. So much so, that HCD required the City to identify R-3 zoned sites that could accommodate additional units and that could be re-zoned to a density of 20 units per acre before they would approve the Housing Element. Currently, only the Blue Mountain Senior Villas project site is zoned at 20 units per acre. The City identified two sites that could be re-zoned, and adopted a housing program stating that the sites would be re-zoned to a density of 20 dwelling units per acre. One site is the location of the proposed Canal Village Project. As currently proposed, this Project would provide 16 low income units and 7 lower income units, and would help the City meets its required RHNA obligation. To provide perspective, the income limits for the affordable households levels and the maximum rental rate are shown in the table below, and are based on a four person household. Agenda Report Page 3 of 5 Income Category %of Median Median Income Maximum Home Income 4-PersonHousehold Rental Rate Extremely Low <30% Less Than $17,760 $48Tmonth Very Low 31%to 50% $20,150-$32,500 $812/month Low 50%to 80% $33,150-$52,000 $1,300'month Moderate 81%to 120% $52,650-$78,000 $1,950-month HUD Affordability requirements,2010,Median income: $65,000/4 person household Note: Calculation of affordable rent includes rent and is based on a monthly payment of 30 percent of gross household income. Communitv Redevelopment Agency Five-Year Implementation Plan The Agency adopted a Five-Year Implementation Plan in December 2009. As required by California Redevelopment Law the Implementation Plan identified both housing and non-housing projects for which Agency funds could be expended. The Implementation Plan identified the Canal Village development as a potential housing program appropriate for the use of Low/Mod Housing Funds. Canal Village Project The applicant has submitted a full application packet for the Project. In doing so, the applicant has expended considerable resources and additional resources will be required to respond to the City's requirements for additional information and revisions to the plans, including the various agreements that are required when Agency assistance is provided. Prior to expending further time and resources, there are key questions that must be resolved so that the applicant can refine the site plan, and documents. This workshop is to discuss those broad, overarching questions. Specific project analysis and details would be part of subsequent public hearings. The triangularly shaped Project Site is bounded by the Highlands Apartments on two sides and Canal Street on the third side. (See photograph below.) Although its size and shape creates a design challenge, its location is ideal for a multiple family residential project. That the property is already owned by the Agency's Housing Fund facilitates the development of affordable housing. Agenda Report Page 4of5 w: L T• � v • Aerial view of the Canal Village site. The applicant has filed several necessary applications for development of the Project. First, as stated in the 2010 General Plan, the site must be re-designated to accommodate a density of 20 units per acre. Therefore, the applicant has applied for General Plan Amendment and Zone Change. The General Plan Land Use designation is proposed to change from Medium Density Residential (MDR)to Mediutn.-Eigh Density Residential (MHDR). Secondly, a Specific Plan has been filed in accordance with the Land Use Element of the General 0 Plan. Lastly, a Site and Architectural Review application has been submitted that governs the development (site and building design)of the Project. The site is approximately 35,283.6 square feet in size. The proposed density of 20 units per acre would allow for 16.2 units. Density bonus law mandates up to a maximum density bonus of 35%. The density bonus is on a sliding scale depending on whether units are being made available for very low income, low income or moderate income households. A 35% density bonus is mandated when at least 20 percent of the base units are designated for low income households, or when at least I I percent of the base units are designated for very low income households. The Project would meet these criteria, and qualifies for a total of 22 units. The applicant is requesting approval for 23 units, and the City has the authority to grant a density bonus greater than 35%, and allow the 23`d unit. The applicant is proposing to construct four 3-story units within the permitted height limit of 35 feet for the zoning district. In the past, other 3-story multiple family concepts have not been preferred by the community. However, given the Project location and the surrounding multiple family Highlands Apartments, the three-story concept is appropriate at this location. The site layout also results in a reduction Ln the otherwise required landscaped area. A perimeter landscape area five feet in depth is required around the perimeter of the site, and it is only provided in certain areas. Where carports are proposed, the landscaping has been omitted. Also, Agenda Report Page 5 of 5 along the Canal Street side of the Project site, the Gage Canal property would provide an opportunity for a landscape buffer between the Project Site and Canal Street. Additionally, the applicant has been able to design an open space area at the center of the site which includes a tot lot and barbeque picnic area, and meandering walkways throughout. The applicant is asking if the landscaping area is adequate. The proposed number of units, the 3-story concept within the permitted height limitations, and landscaping concept are integral to the Project design. The number of units, and 3-story building concept were two main design aspects discussed at a noticed community meeting held in February 2010. The applicant is requesting a general sense as to whether these design aspects are appropriate for this Project and at its proposed location. Any future use of affordable housing funds for the Project would require a Disposition and Development Agreement. However, whether Agency funds are used or not, the City is still required to meet the RHNA, and this Project gets the City closer to meeting its allocation. FISCAL IMPACT: Typically, the smaller a project the more difficult it is for it to be financially feasible for a developer. During the preparation of the Housing Element, staff contacted a number of affordable housing developers to determine the lowest number of units that would make an affordable project afeasible, and the consensus was that it would need to be at least 45 units for it to be financially feasible. The proposed Project is only 23 units, and therefore, the applicant would be requesting Agency assistance. Agency Housing Funds are available for this purpose. Prepared by, �- Sandra Molina, Senior Planner Respectfully submitted, ;- rlwrjl4J+ L o11 yce Powers Director of Community and Economic Development ,Manager Approval: C-17 Betsy M. Ada s Citv Manager ATTACHMENTS: I. Site Plan 2. 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Adams, City Manager Brenda Mesa, City Clerk Bernie Simon, Finance Director Joyce Powers, Community& Economic Development Director Richard Shields, Building & Safety Director John Harper, City Attorney Sgt. Carlos Espinoza, San Bernardino County Sheriffs Department Rick McClintock, San Bernardino County Fire Department ABSENT: None CONVENE THE JOINT CRAICITY COUNCIL WORKSHOP at 4:30 P.M. JOINT CRA/CITY COUNCIL WORKSHOP A Joint CRA/City Council Workshop was held to discuss the following items: 1. FY 2009-10 Audit and Restated Fund Balance in FY 2011-12 2. Potential Fiscal Impacts of Governor's Proposed 2011-12 Budget Mayor Stanckiewitz adjourned the CRA/City Council Workshop at 5:52 p.m. CONVENE COMMUNITY REDEVELOPMENT AGENCY AT 6:00 P.M. APPROVAL OF 01-11-2011 MINUTES CRA-2011-02 MOTION BY VICE-CHAIRMAN GARCIA, SECOND BY AGENCY MEMBER SANDOVAL,CARRIED 4-0-0-1 (AGENCY MEMBER HAYS ABSTAINED),to approve the January 11, 2011 Community Redevelopment Agency Minutes. CRA AGENDA ITEM NO. 1 Community Redevelopment Agency Minutes January 25,2011 Page 2 ANNUAL REPORT TO THE LEGISLATIVE BODY CRA-2011-03 MOTION BY VICE-CHAIRMAN GARCIA, SECOND BY AGENCY MEMBER SA DOVAL,CARRIED 4-0-0-1 (AGENCY MEMBER HAYS ABSTAINED),to accept and file the Final 2009-10 Annual Report for the Community Redevelopment Agency. TOIL SQUARE PROJECT UPDATE Community and Economic Develooment Director Joyce Powers,indicated that Mike Slaton from Stater Bros.Market will be giving an update on the progress of the construction of their Barton Road site. She also reported that in addition to their construction, the Agency will be doing a public improvement project as follows: Barton Road Street improvements, including a turn lane, traffic signalization, and lane restriping at the 1-215 interchange; Michigan Street improvements: additional right turn lane(northbound), lane striping; and La Paix Street: street and landscaping improvements. Mike Slaton. Stater Bros. Markets Representative,reported that they are under construction and they are on schedule. It looks like the store will be opening at the end of August. He stated that the footings are done and it should go vertical within the next 7 to 10 days. He stated that the footings are done on the south wall on the south property line. Steel and concrete should be coming on site this week and the masonry wall should begin to go vertical the following week. At the end of April they should be approximately 90%done with the site. Vice Chairman Garcia, questioned if they could get a tour of the site. Mr. Slaton,responded that they should be able to schedule some tours. Vice-Chairman Garcia, stated that Stater Bros. is helping to pay for the cost of the landscaping on the neighbors side of the south wall. Community and Economic Development Director Powers,stated that what Stater Bros. has agreed to do is allow us to connect to their utilities and water service for the landscaping that would be seen from La Paix. They will pay for the water service, maintenance and power to run the irrigation. Chairman Stanckiewitz stated that they are placing a fairly new concept of a storm drainage Community Redevelopment Agency Minutes January 25,2011 Page 3 system and requested how it will work. Driector of Building and Safe1y2ublic Works Rich Shields,explained how the storm drain system will work. Cynthia Bidney, 12219 Pascal, feels that every time the subject has been brought up by her or her neighbors she was told that it wasn't the right time and they were put off. She feels that staff never intended to support their project to protect their neighborhood from smog, noise, light pollution or their property values. She feels that the only interest Council and Planning has had was paying an investor to build in the City. She feels that she has been lied to by past City Manager, Assistant City Manager and Councilmembers and now by the present staff. She stated that on April 27' she asked the Council to mitigate the already above State Level noise problem. Council voted to allow raising noise to build the project. On April 24' she showed the Council and Planning pictures of how this project was going to affect their neighborhood and feels that no one was interested and that it wasn't the right time. In November Council voted to support an agreement to pay Stater Bros,over 2 million dollars but feels that it was never the right time to talk about mitigating the south wall. Again in November her neighbor and herself met with staff and Mayor Pro Tern Garcia and talked about the South Wall. She stated that they were told that the street would be widened seven feet and set the wall back another 4.5 feet. Today the wall is being built 4.5 feet from the existing street. After she was told by Staff that the street was going to be 7 feet,she got an e-mail from Mayor Pro Tern Garcia that it was going to be extended another 1.5 feet. She stated that she has been told so many things over the years. Vice-Chairman Garcia, stated that Mrs. Bidney has come before the Council on several occasions to discuss the South wall and was told that it was not an agendized item. On December 14, the Council voted to approve the Master Development Agreement with the following three points: 1. That a full report on the status of the landscaping project for the south wall and the La Paix street widening and the plan of action for keeping the Council, residents and neighborhood informed of the process. 2. A time Line with action items of what the process will be between December 2010 and September 2011 with the proposed opening date of the Stater Bros. provided to the Council. 3. Look at having Public Information meetings on the status of the Stater Bros Development at the public workshop between the City Council and representatives from Stater Bros. in January, 2011 She stated that she did attend the meeting with Mrs. Bidney and Mr. Herman along with Community Redevelopment Agency Minutes January 25,2011 Page 4 Staff. She feels that as a Councilmember it has been difficult to get what the actual project is. She feels that it is her job as a Councilmember to meet the needs of the residents. She is frustrated as a Councilmember. She stated that she was told that a full report on the improvements would be given during the presentation. City Manager Betsy M._Adams,responded that the improvements themselves are out to bid. She stated that if Council would like Staff to give a presentation on the bid specifications it O can be done. She stated that the bid specification for this project are not on-line for this project because the package is very large. Typically on projects of this size you would put the notice out there and if people are interested in bidding on the project they would come in and purchase the specifications. Vice-Chairman Garcia. stated that the Council took action that a full report would be given on this project and she feels that it is very important to keep the residents informed on what is going to happen and when. Aggency Member McNaboe stated that she is curious about the content of the meeting that was held and the agreements that were made during that meeting and questioned if those were going to made public. Vice-Chairman Garcia, responded that as a councilmember she asked the City Manager to schedule a meeting to meet with the neighborhood. Agency Member Sandoval, stated that he has not seen a document that shows exactly what is going to be done with the project and feels that it would be good to have a document that clearly states what are we doing and what are we not doing that is easy to understand so that we can avoid these types of confusing situations. Agency Member McNaboe, stated that she would like to also see some way of showing where we are with each project as they come up. She feels that there isn't a quick way of looking at any project that is going on in the City. She feels that we run into confusion when we ask the same question of different areas of the City. Different Departments have different definitions. Chairman Stanckiewitz,questioned if staff has copies of the plans and specifications for the projects. Community and Economic Development Director Powers, stated that they have multiple copies of plans and specifications for purchase. It is expensive to prepare the copies. They can provide copies and meet with anyone that would like to see them. They have been available for quite some time and the landscaping or Iayout has not changed. Community Redevelopment Agency Minutes January 25,2011 Page 5 Vice-Chairman Garcia, feels that the information needs to be available in a way that everyone can understand it. Chairman Stanckiewitz,feels that maybe there has been too much communication. He feels that what is going on at the site looks exactly like what was presented at the community meeting. He stated that the only thing that was up in the air was what type of landscaping was going to be used but the width of the green belt had not changed. It is his understanding that they were going to widen the green belt by trying to take it out of the street and that is when the fire department came in and said the street can not be made any narrower. Nothing has changed. What they are doing is exactly what they showed the community last summer. Agency Member Sandoval questioned where the communication or understanding came from that the street was going to be widened significantly. Mrs_Bidney,responded that it was never part of the discussion to widen the green belt from the middle of the street. The meeting was called because there were so many communications. The answer came at the end of the meeting when Community and Economic Development Director came in and showed her the plans. City_Manager Adams,stated that this is an approved project. She feels that there have been 0 a lot of conversations off line and feels that it would be in the best interest of Council and Staff to come back and provide the information to the Council as a body at the next meeting. A presentation of the off-site improvements for the Town Square Project overall and what the City is responsible for. It will be a summary of what is currently out to bid. Vice-Chairman Garcia, requested that the residents be notified. Chairman Stanckiewitz adjourned the Community Redevelopment Agency Meeting at 6:53 p.m., until the next CRAICity Council Meeting that is scheduled to be held on Tuesday,February 8,2011 at 6:00 p.m. SECRETARY of the Community Redevelopment Agency of the City of Grand Terrace CHAIRMAN of the Community Redevelopment Agency of the City of Grand Terrace ,a fALIfORYiA AM AGENDA REPORT MEETING DATE: February 8, 2011 Council Item( X ) CRA Item (X } TITLE: Public Improvements for Barton Road, Michigan Street, and La Paix Street PRESENTED BY: Joyce Powers, Community and Economic Development Director Richard Shields, Building and Safety/Public Works Director RECOMMENDATION: Receive an update on the public infrastructure improvements for Barton Road, Michigan Street, and La Paix Street. BACKGROUND In June 2010, the Agency Board approved an $84,281.00 engineering design contract with Webb and Associates to design infrastructure improvements needed to accommodate business growth along the Barton Road corridor. The plans and specifications are complete and public bidding for construction began on January 17, 2011. Engineering plans and job specifications have been available at City offices, on the City's website, and through plan rooms that alert member contractors to bid opportunities. The improvements include: • A traffic signal on Barton Road (near existing Miguel's Restaurant); • Eastbound right turn lane on Barton Road at traffic signal; • Westbound left turn lane on Barton Road at traffic signal; • Northbound right turn lane on Michigan Street, south of Barton Road; • Left turn pocket on (southbound) Michigan Street onto Commerce Way; • New curb and sidewalk along Michigan Street adjacent to the new right turn lane, • New sidewalk and bus turnout along Barton Road adjacent to the new right turn lane; • Landscape and irrigation along Barton Road (in front of existing Miguel Restaurant); • Increase street pavement by 1.5 feet and install curb along north side of La Paix Street; • Landscape and irrigation along La Paix Street, irrigation connected to Stater Bros. utilities; • Channelized median on Barton Road to direct drivers to the traffic light for left turns; • Restriping for longer turn pockets for westbound traffic at the Barton Road interchange, submitted to CalTrans, but not yet approved; • Traffic signal synchronization: and, CRA AGENDA ITEM NO. • Relocation of utility poles. The engineer's estimate for construction of the public improvements is approximately $460,000 plus the cost of utility pole relocation on La Paix Street, and Barton Road. Staff does not have an estimate from Edison for this work at this time, but the project engineer advises to plan for approximately$100,000, which brings the estimated total to$560,000. DISCUSSION: The bid opening is scheduled for February 3, 2011, and staff will be able to provide additional O information regarding the bid results during the meeting of February 8, 2011. Staff anticipates presenting a recommendation to the Agency on February 22, 2011, for both bid award and budgeting for construction and project management. These improvements will serve new commercial development along the Barton business corridor and will be completed by July 2011. according to the following schedule. Public bidding for public improvements January 2011 Award contract for public improvements February-March 2011 Relocation of Edison poles March-April 2011 Start work on public improvements March-April 2011 Traffic signal installation June 2011 Complete public improvements July 2011 *Start of work is affected by pole relocation and traffic signal lead time. Street and landscaping plans are attached, but some of the text may be too small to read. Full size plans are available at both the Public Works Department and the Community and Economic Development Department and will be available in the Council Chamber for the meeting on February 8, 2011. FISCAL IMPACT: Development Impact Fees collected from Stater Bros., based on the market square footage, on December 20, 2010 include: Arterial Improvement: $421,728.92 Traffic Signal: 37,195.20 Total $458,924.12 The improvements provide for continuing commercial construction for which additional fees will he collected as other building permits are obtained. Agency funds may also be used for tmnstruction, which may be recommended due to current State issues surrounding the longevity qt the Redevelopment Agency. (Fl I I Respectfully submitted, 166ycelPowers Community and Economic Development Director Richard Shields, Building and Safety/Public Works Director Manager Approval: Betsy M. Ad City Manager ATTACHMENTS: 1. Approved Street Improvement Plans 2. Approved Signing, Striping, and Traffic Signal Plans 3. Approved Landscaping Plans 0 ATTACHMENT NO. I STREET IMPROVEMENT PLANS 0 ' t �q � R Sol a d q �� co Manic o _o�oiao_ o Qaso- ono ���� a @oa [t q "jig Ix 00001 Xv 112 RJR q rI W� it,n v Ts, Tf I IS Q _'I�I esn IL t"i, �Qsi 1111M '11 -1 �haq�� c 1 � ° ern e - I n na ani 33 y• � y 7� J fi 4j $ Ae 's e gttt yy� I iP, oil 3 #� �-v �+�� •'#� � 1e�i � 7q §X .R irk ���$� :�g*g �� �,��+ �$n� x4:�a � � ��y���F��x�� j.1 :..a{ �aqi \a� + a '1• ] y•_ 7G ;iY -i �•TAY ; '3:j, Si n Y 2.� r 1 -� `� ,�wi —'"�� "',i� 'd 3 � :� �:� �# -vr �'- -.4� ��- �� _;S •e =i _rta „�y'd � � _ r x ��a.j�il@ y t i;xp_ y 4 `• 995 CL CL 1_ ._ "ZiEm.rauea r d Dow owo r aJ / p r ;lr ee or er 995 CURB RETURN C3 e x i- 14' pT -- .. amo r is e �— r a v a 3l15 !PRT RT }� ' •ar go rn _ y_ nlolam r K ac 0wumrC.r cp171ir.� •+�nvvcA v'nvCM1 •unvC . Jl FFTK)FU SOLO CURB RETi1RN C4 hdtR. 1'-W 11 12 13 14 15 16 17 1B 19 2O 21 COMMERCE WAY BARTON ROAD R�•rnN R Y !L we`d.n. 1 1 l ass! q El lr v 2� I gal i pp }C� 'O l • si. S�r�} '" rlt` •� � 1 rL s ti - aE: a 1` e►• !�� := EBBS u ■ �..�. w�n All r1�#s SOUTH DRIVEWAY t� COhMuCTiOh hOTl3— .1 NORTH DRIVEWAY I �— c• -=5 e ••au,+r.ats..._..er.r p.:rl. a•a1a"ai� GRAND TERRACE TOWN SQUARE a r 1Yw P. 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At r►rN Cft=■rs FIr.a1M.ui.r �c.. IIIOr6AM STR6f In t MOEILE ••"-.epN � =^ sm 1l.a1A1 TmN 71/-1HSaSa rii.iR. POLL FREE 1-BOO- 2500 scn: a�rr i arwq o. r w1. �` .-- ._ ', "o.w ae c b s'r ..a a e.1 rry a ag 9rlyr r .i BON Ou r JG ea�ilGbK1I asaen n pn a•�w w a. wwt P aT[1Y14�" �' ae o ado[+r.�'[ '�n-a.y1 Z °f 4 O 0 0 1010 CL L sic CL CURB RETURN C2 1 Dt0 _ 1010 31' RT i raj'.° ,r t,3� rl 31' RT -- � �# tv V Wr OF VA n� -wvm r u. 1 1010 _ .i _ 1010 RT CURB RPM C3 •M of or cn - 11omr 1._w. 1�[wr. s'..• 17 1B 19 20 21 22 lO 0mon 1 ow 4c m•Pu'tQ 41 am t O tw ac mu A E Ow,IN t WAC-ln we.a wk. c P.004 h4 r.. n.a mr m;© ®tlmac UFCM mm=,c st I.w i 0 meTEO!•OA It MM PW SM WkVDM CUM Aa tIS Q amc l,QI 4E1„To s wau E mowummom r SCE o. mmnao!•.7.E tau 1D1 rf m tort tW-t..l-!Pam ®touc ua,ac rat m E"4 m E u.E a sa m E 1001IC.K6 MO-6Wnt b0 ba11 Q O6fiG'no oc ow m E whimaIRQi6m in gal .y , ` �J1 �j (r totesnrci saer�u w KIN sr for,eitm mom rte i ++ 1t�t Dar.tc wlnt fu!1 K rw�a.+nwxm w w rw. 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Eya o.tl.�n. .......... ..YwI.k�o.iA 1.u6..w_,..urr q .•.rj i.w IsiT1►�T,ON4PtI1 0NmtA01j/AlR 6II MMHR�YA FPMi itl�tN IeIR1 .�wA.iltIPT r MAN nq[w a7 err a 17 u0 ro..z , kPiT 3 4 = x 1 E1015 • s tr e �• , a# r � i� ' Br �� _ N• �,ML • L1! e oil 1015 iM]15 ,; a ` LfsMLr1 Mtstol CL CL } • CA I l L11'ter •mfrc/L � �` t �s Y rJ rs 1015 } • q Ma6l Mill RT RT 6L' b / CLMIfi r f:l. 7Ei= re a Qf Can Mil NOItlZ 1'.{0• Kfrr t'.. -- 10 11 12 13 14 15 16 M�f1s 0 ramacM Gn-a ml.as w As mxz. r] Sr1l11�E I?•�• 0 u"rf omo-r-ftam t-Y rrr_0-6IR r1 GRAND TERRACE TOWN SQUARE Q[ c3.vw r am a.r rls rr sm ram.uo-: •, r,=I (cm m f aaxlc va Lle to wffO [aa MliA MaMAn amic MXM WM Lr..s rc>arr r.rom r.-a... _ QSrI•. t� suw f am*.c"-am n cwr"o t ^J f R9K>yl lr r wr tirf�Lwr • �� 0 LOAtc PMsrlq•-•raw n wosK10s ••1 w�.w , r-L rrrrrt s.cw..L �•on�t>raK trua (i� _ 't: rMtp■na .,� 0 ra,at Msnnc tro n mmrctar ./. 1 T l tip fb a sn Inar•r•'1 — � Lttstlf sr.Sf 71SinL s stswi IW a Lraart 4 YL47CY• as"on m K�Mn m mctal Nr�py 1' ,wrr r+ow, e.M cM1 }' b f Mr .�] f.vai Kwo m M•LM a a r1e�¢Jtaoulty p 7•a i141K S70 11wa11 ti f UJWO ru fifL N 0P11.CJ i�rta LZM4 h'[V CA*"Ip K WDED n Ll./n IN CGbMCq't jt— RIM STONEWOOD DRIVE PASCAL AVENUE REED AVENUE '0 f*wm ic axamm I �'�um 'P'm am wmv RTA-" :• . .. Q •4t►t WCtc famm(wo: Imp4c a im a*rnu n fiM' .%= LA PAIR STREET 3flL --!-•• rs as .• i r •.-.e..asr roi i i rw L• t r r ra•1.f srsr ) .e / J Lr-dc t0,>6 r'..•'a rl•.al fM rP Yt r'�-YM 1 r ow, ry "�---�" r=j- . ss.w r m.a nor. - - ti_T'-= MtiA rtntac�t r.ef• . .ur,M E. • o r.a M I.r Ip prlrn PrQ rf•ryK - L'wn f r.fl 9+uean L.OR LL[ o•nr.t e.. w.. _ • am mre+m saa - -'1 suet.•ra..f TYPIGL gCllOf r TYPMAL RATER rMIM MIAM DETAIL 'A' u tocA. Arta r' uma t J C�..wLER S11L pmNuen ALMS MrrOkTAN N011C: a •tor r.r w CIVIL .i♦..L'�r„s l p:•Y•• �wT•df.�(/. t W..®Y _ ___ _ Y /IlY•L.n MOM 1� i���a �1•W:K•+Prfufb t�A.ath[l�fbt 0!.ItRI MtOiLO n ` � •0.0 IG av' 'e•.[-a a..a eu.ro.w.r t„'. ..- ••• •• LA AAR i1RfS1 hJ1i t Afwrre iwoaalallO u sarr r •L aCLF n.x La 91Lr ..2 .r .ti:-t a[.e...y irrs t __ v+—aa-N K t�wll LtfYj�1�-- . sctny INLCII Mrrlis.s6ls TOLL iREC a u •orn •A- 4 4 wwsuwA"al mra 0 6 . 0 ATTACHMENT NO. 2 SIGNING, STRIPING AND TRAFFIC SIGNAL PLANS net AR �I-1 1 ill z if� if zm SI C7F �i� 'r Lag W ON ir -Uft t F V € 6 ggill ° b Q m I all W � i F 6`e ill All • �ei! y 6 aim !2Rtj31" Z 133HS j33S 6• M►1 e� a ry} EFF � �a : 3 fF & it 9 gf -3!g j .H, i351 ai PEN y-q! � � she .� a it +�� ?�:G 3n g i ��Y�{� •3��� iq =V � i r��.� s?!e _i fYS w �� � •''' iw � 3* �!Y t�a; dt j J�s�e� 3,,� �� � 1 k � ! ea � '�'�� :C='3 q"�q =,.� •°g �-Qy �_ •S � ayY � �� a _ 5 t � - �•iA �' -'! f• ��� � � ���� ��es_ s}` �{d.s :�..� :�� �d f:y- �.S 3 3s 3is .!`" �� i � ;� 7 � •'�a�Ya _shy ��-a�4a$■ ,yy3� •f a ..� _:+y .1X� � � 4q r �" "� � °{�Yt Sa � ._ � :fit;y� - �d � G! u�� i'b i� c.tiF .`�I .�r?�� Y.�ay. G0� �� *ii�r +c ^� =f t�, jiY3 k• f - ? •�c"a !( —J� COMMERCE WAY M(�IY +I R e 2 sou t r f so m Yhf r J r Q P s b to riLi i s1ll n f .qfy ! a {m I,Vr1 kw vas/i i 1 X ...' �� I Tgo — 1 I , IT T ;f 1Y ..�M If ,i jl[�K�M4aD wRR7-r[>A a ! ¢ 7 r I 11.;� !�P� i IJ Y-1 If 1J-! ,. 70 + ! t{ 1{ I' llt an M I C H I G Il N S T R E T Val Mm MorALf > rw[rL rrQ.a.E.Y r rc BARiON ROAD SIGNING t sTMr*C COIESTRlICT10M, TES OsY4Lasi..n 5t Wd R sowtsM.f.SIIY'Y,G IM/OI P,.n[r,,rrwGs I'lll/LE`7Lr _ 0""�I I s Pwr,'/.'oaar an0 x.O.'.'I it K■r Mm O SiMVI�PLAN&PIMI M 4700L MIM U TP MII I P..NI•'&a r•lt tWA."the C�MMS 51WA W + 1 3 1pD I_ t 17 10 1 r raft I 1 r `�y O RMd RM IO .iGl o[Ul il! O PM1T I1Po Mr IER TIMy M M(PLO CATII.S. STM[rlo N PLM.s,1'MI.110 L70�.41 !! ",�, - - it• ••• •• J1 ©srHor n°�40 n Y ME D-0P. I..Ei ire c t, -I ,a V - 1 #—I.'S[Rn w.lr CiW dd2+G IAi PLrt CMr"Ns SI+IbI�PLOP&ILMI W-AJM 4RM A Plrl+S. XA0 rdq b<l.•[I PP Cknb,ws r� tl' SIMiMp 1VY.S.PLM1 MO .lau.lXlti!. A rf' tj I.' 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( sdom E.m Pr F m w ado w o.l[(�•�� 4"—0 me tlMa " +>r sw 2 w 3 - a a P� iCs Y R 9i a !Ia 114 s a x a 91 I w§s 1$ P9 ;33 I 111 11 Val 0, ' It is 5 t y' � _. �ij6 : 11LIP G 1 Is � •vl •� �..J „� - � 11...E �a��. n i _ WIC `]�'?�N�■e _ I 1�_ t_ 44�KK� jVlV! I• i ao " �i 0 ATTACHMENT NO. 3 LANDSCAPING PLANS 0 CITY OF GRAND TERRACE, CALIFORNIA LANDSCAPE PLANS L4 PAIX AND BARTON ROAD I I I I I I I I I I J -- -� }- -��_�J- ��:.�,_.�� 1 SHEET INDEX SHEET / DMRI"M Z ={. . ;, -- -- - a.. ,•-- �-��=� - T TTTLE SMEET ANo wnEx LAAP s ' 2-1 IRMlGAR N PLAN �=22 4 { 4-5 PLAITING PLAN OE'TALS ---�• ++ a R8.Me aTQ aNar s e s 1 k w,wsc•.rEt,€s ll�fal MAE — .•IU.yS r:. ItlrT.••r.J.MG W W l.. 1Mf SM.T]/ ,wrl Tr[.n.... 140r1))FILTH.. F.W. 1... Ilmi 71u.i� 10"f 420 zm i.�.1i( y.,Mw uc+OM.•FD6lF im if0-+ i:CiI.'.a.Oi�tbi sM Da IsILn7 aB,I i r�'+lDa fu0`rld`-rr nO TP[11!CWFtlC1V1 �iw Imm" NOTICE TO cohrRAFIgns Mmrnm �jX ivwo Toe ev"am. ao W. 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L l� �� a !� E � e k �El, :3g • LALIFO&lVIA AGENDA REPORT MEETING DATE: February 8, 2011 Council Item(X) CRA Item (X ) QTITLE: Approval of Resolutions for Use of Agency Funds for Improvements to Mt. Vernon Avenue completed in Fiscal Year 2006-2007 PRESENTED BY: Joyce Powers, Community and Economic Development Director Bernie Simon,Finance Director RECOMMENDATION: City Council: Approve the attached Council Resolution making certain findings and authorizing the use of Agency funding for the reconstruction of Mt. Vernon Avenue during Fiscal Year 2006- 2007, thereby reducing the amount owed to the Agency by the General Fund by$819,235.00. Agency: Approve the attached Agency Resolution making certain findings and authorizing the use of Agency funding for the reconstruction of Mt. Vernon Avenue during Fiscal Year 2006- 2007, thereby reducing the amount owed to the Agency by the General Fund by $819,235.00. BACKGROUND: Staff has been researching the use of General Funds for capital projects between Fiscal Years 1999-2000 and 2008-2009 to determine whether certain projects funded by the General Fund may have been eligible for Agency funding. One such project, to reconstruct Mt. Vernon Avenue between DeBerry Street and Grand Terrace Road was initially approved by the Council on September 14, 2006. The second phase of the project was approved on December 14, 2006, to reconstruct Mt. Vernon Avenue between DeBeny Street and Main Street. Project costs for the two phases were primarily funded by the General Fund in the amount of $819,235.00. The remaining costs of the $889,643.38 project total were paid from the Street fund. To be eligible for Agency funding, a project must promote revitalization of the Redevelopment Project Area by correcting a blighting influence that causes a deterrent to the physical and economic health of the surrounding area. Community Redevelopment Law allows Agencies to fund public improvements that meet these criteria upon consent of the City Council. The project described above consisted of removing and replacing the deteriorated roadway, which meets the requirements. CRA AGENDA ITEM NO. �, DISCUSSION: After reviewing the circumstances with the City Attorney, the California Redevelopment Association, and the city auditor, staff is recommending that the Agency fund this project and has prepared Resolutions making certain findings to authorize such payment. The City and Agency must also find that no other funding sources are available for the project, which is documented by the City's unfunded debt. Approval of the Resolutions should take place before improvements begin, however, to take this action now would appropriately correct this past oversight and authorize Agency funding. The 0 Resolutions also provide for correcting the $4.6 million loan amount owed to the Agency by the City. When reduced by the project costs of $819,235.00, the loan amount would then be approximately$3.8 million. The use of redevelopment funds for public improvements requires approval by the City Council, as the legislative body, and by the Agency. The Resolutions making the required findings are attached for review and approval as Attachments 1 (Council) and 2 (Agency). FISCAL IMPACT: Approval of the Resolutions will reduce the City's liability to the Agency by $819,235.00. These actions also reduce the Agency's future receivables by $819,235.00, but do not reduce the Agency's current fund balance. Respectfully submitted, Joyce Powers Community and Economic Development Director Bernie Simon Finance Director Manager Approval: Betsy. . Ad" City Manager ATTACHMENTS: 1. Council Resolution ?. Agency Resolution 'w .1-4 � ,i 0 Attachment No. 1 Council Resolution RESOLUTION NO. 2011- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING CERTAIN FINDINGS REGARDING THE CONSTRUCTION AND INSTALLATION OF PUBLIC IMPROVEMENTS, WHICH ARE OF BENEFIT TO THE GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT AREA WHEREAS, in Fiscal Year 2006-2007, the City of Grand Terrace ("City")completed public infrastructure improvements on Mt. Vernon Avenue between DeBerry Street and Grand Terrace Road using$819,235 in funding from the General Fund;and. WHEREAS,the project included construction and installation of public infrastructure improvements,consisting of the removal and reconstruction of the street in the Grand Terrace Community Redevelopment Project(the "Project Area"); and WHEREAS, the lack of infrastructure on Mt. Vernon Avenue between DeBerry Street and Grand Terrace Road created a blighting influence in the area, causing a deterrent to the physical and economic health of area by deterring private investment and new development in the Project Area, thereby constituting blight; and WHEREAS, the reconstruction of Mt. Vernon Avenue improved the utility of the surrounding land area, thereby benefiting the Project Area; and WHEREAS, the Improvements enhanced and promoted the revitalization of the Project Area; and WHEREAS, Health and Safety Code Section 33445 provides that the Community Redevelopment Agency("Agency") may, with the consent of the legislative body,pay all or part of the value of the land for, and the cost of the installation and construction of, any building, facility, structure, or other improvements that is publicly owned either within or without the Project Area; and NOW THEREFORE,BE IT RESOLVED by the City Council of the City of Grand Terrace hereby: Section 1. That the reconstruction of Mt. Vernon Avenue between DeBerry Street and Grand Terrace Road completed in 2007was of benefit to the Project Area and assisted in removing blight by improving the health and safety, and promoting revitalization and better use of an underutilized area. Section 2. There was no other reasonable means of financing the entire Improvements available to the community because the Project is not within the budget of the City and therefore created a debt upon the City General Fund which cannot he repaid. Resolution 2011- Page 2 Section 3. That consistent with the implementation plan adopted pursuant to Health and Safety Code Section 33490, the payment of funds for the Improvements assisted in the elimination of visual and economic blight and promoted and enhanced the revitalization of the Project Area, thereby eliminating one or more blighting conditions contained in the Project Area. Section 4. The City Council hereby consents to the Community Redevelopment Agency of the City of Grand Terrace paying for all or part of the costs to reconstruct Mt. Vernon Avenue between DeBerry Street and Grand Terrace Road by repaying the General Fund $819,235 or by reducing the amount owed by the General Fund to the Agency by$819,235. PASSED AND ADOPTED by the City Council of the City of Grand Terrace, California at a regular meeting held on the 8th day of February, 2011 by the following vote: ATTEST: City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace and the City Council thereof and the City Council thereof I, Brenda Mesa,City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 8th day of February, 2011 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Brenda Mesa City Clerk Approved as to form: John R. Harper, City Attorney 0 Attachment No. 2 Agency Resolution RESOLUTION NO. 2011- A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING CERTAIN FINDINGS REGARDING THE CONSTRUCTION AND INSTALLATION OF PUBLIC IMPROVEMENTS, WHICH ARE OF BENEFIT TO THE GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT AREA WHEREAS, in Fiscal Year 2006-2007, the City of Grand Terrace ("City")completed public infrastructure improvements on Mt. Vernon Avenue between DeBerry Street and Grand Terrace Road using $819,235 in funding from the General Fund; and. WHEREAS,the project included construction and installation of public infrastructure improvements, consisting of the removal and reconstruction of the street in the Grand Terrace Community Redevelopment Project(the "Project Area"); and WHEREAS, the lack of infrastructure on Mt. Vernon Avenue between DeBerry Street and Grand Terrace Road created a blighting influence in the area, causing a deterrent to the physical and economic health of area by deterring private investment and new development in the Project Area, thereby constituting blight; and ( WHEREAS, the reconstruction of Mt. Vernon Avenue improved the utility of the surrounding land area, thereby benefiting the Project Area; and WHEREAS, the Improvements enhanced and promoted the revitalization of the Project Area; and WHEREAS, Health and Safety Code Section 33445 provides that the Community Redevelopment Agency("Agency") may, with the consent of the legislative body, pay all or part of the value of the land for, and the cost of the installation and construction of, any building, facility, structure, or other improvements that is publicly owned either within or without the Project Area; and NOW THEREFORE,BE IT RESOLVED by the Community Redevelopment Agency of the City of Grand Terrace hereby: Section 1. That the reconstruction of Mt. Vernon Avenue between DeBerry Street and Grand Terrace Road completed in 2007 was of benefit to the Project Area and assisted in removing blight by improving the health and safety, and promoting revitalization and better use of an underutilized area Section 2. There are no other reasonable means of financing the entire Improvements available to the community because the Project was not and is not within the budget of the City and therefore created a debt upon the City General Fund which cannot he repaid. Resolution 2011- Page 2 Section 3. That consistent with the implementation plan adopted pursuant to Health and Safety Code Section 33490, the payment of funds for the Improvements assisted in the elimination of visual and economic blight and promoted and enhanced the revitalization of the Project Area, thereby eliminating one or more blighting conditions contained in the Project Area. Section 4. The payment of all or part of the costs to reconstruct Mt. Vernon Avenue between DeBerry Street and Grand Terrace Road by the Agency reduces the amount owed by the General Fund to the Agency by$819,235 or repays the General Fund$819,235. PASSED AND ADOPTED by the Community Redevelopment Agency of the City of Grand Terrace, California at a regular meeting held on the 8th day of February, 2011 by the following vote: ATTEST: Secretary of the Community Redevelopment Chairperson of the Community Agency of the City of Grand Terrace Redevelopment Agency of the City of Grand Terrace 1, Brenda Mesa, Secretary of the Community Redevelopment Agency of the City of Grand Terrace,do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the Community Redevelopment Agency of Grand Terrace held on the 8th day of February, 2011,by the following vote: AYES: NOES: ABSENT: ABSTAIN: Brenda Mesa Agency Secretary/City Clerk Approved as to form: John R. Harper, Agency Attorney ky. t3�iFgRv;a AR AGENDA REPORT MEETING DATE: February 8, 2011 Council Item ( } CRA Item(X) TITLE: Adopt Resolution to Approve FY 2010-11 SERAF Payment PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION. Adopt Resolution to Appropriate, Approve and Reserve Right of Refund of State required SERAF payment for FY 2010-11 BACKGROUND: Since the early 1990's the state has taken redevelopment funds from agencies to balance the state budget. The Community Redevelopment Agency has lost a cumulative total of $4,165,599 available fund balance to the state since 1992, including $448,636 for the current fiscal year_ This is in addition to the estimated $850,000 of 1.0% general property tax levy allocation that was shifted over the years to the state since that time. CRA is required under the State Budget Act of 2009 to transfer funds to the State Supplemental Educational Revenue Augmentation Fund to fund K-12 educational institutions. CRA Board must appropriate funds and advise the county auditor controller, no later than March I' that it has non-housing CRA funds available to make such payment and the board shall warrant that such payment will be made to the county auditor controller no later than May 10, 2011. Staff has determined that the Agency does have available undesignated, unreserved non-housing CRA Fund Balance Reserve to pay the SERAF transfer for FY 2010-11. DISCUSSION: The State budget approved by the Legislature and signed by the Governor in July 2009, included ABX4-26 which authorizes a devastating $2.05 billion raid of redevelopment funds in FY 2009- 10 and $350 Million in FY 2010-11. The California Redevelopment Association filed a lawsuit in Sacramento Superior Court challenging the constitutionality of taking these funds. The State prevailed in the lawsuit in 2010 but the California Redevelopment Association has filed an appeal. The CRA's share of SERAF was $2,179,087 for FY 2009-10 and $448,636 for FY 2010- 1l. Staff will hold the SERAF disbursement again until the outcome of the current appeal is known or May 10h. Hopefully, we will know the outcome before the May 10'h deadline. Should staff CRA AGENDA ITEM NO.y.� send the payment to the county, the attached adopting resolution reserves an immediate refund of the amount paid should the appeal be successful. FISCAL IMPACT- This SERAF liability was appropriated in the Agency FY 2010-11 Budget. There are sufficient funds available to meet this obligation. The projected available CRA Debt Service Fund Balance Reserve this year is $6.7 Million after designating $2.1 Million for debt and after subtracting the SERAF appropriation of$448,636. Respectfully submitted, Bernie Simon Finance Director Manager Approval: Betsy Nf Adat6s City Manager ATTACHMENTS: 1) ffistory of ERAF and SERAF direct taldng 2) Dept. of Finance Letter dated November 12, 2010 3) Community Redevelopment Association information regarding 2010 raid of Redevelopment Funds and Litigation d) CRA Resolution 2011 City and RDA of Grand Terrace History of CRA Takings and Payments to ERAF Community Redevelopment Agency of Grand Terrace LOSS of CRA FUNDS from CRA to State ERAFISERAF CRA Fiscal Year FUNDS ERAF 1992-93 Loss of CRA Funds $ 451.739.00 1993-94 Loss of CRA Funds $ 49,393.00 1994-95 Loss of CRA Funds $ 49.404.00 2002-03 Loss of CRA Funds $ 115,801.00 2003-04 Loss of CRA Funds $ 188,533.00 2004-05 Loss of CRA Funds $ 335,639.00 2005-06 Loss of CRA Funds $ 347,357.00 Total ERAF Funds Taken to Date-1992 to 2006 $ 1,537,866.00 SERAF 2008-09 $448,200 ruled illegal by Court None 2009-10- NeWSERAF" Loss of CRA Funds 5/10/2010 $2,179,087,00 2010-11 - New'SERAP Probable Due 5/10/2011 $ 448,636.00 TOTAL SERAF Taken to Date 2008 to 2011 $2,627,723.00 Cumulative Total to be taken through 6130/11 $4,165,689.00 0 ERAF History Page 1 ;alttornta Redevelopment Association's Estimate of each Agency's ERAF Transfer to Meet the$350 Million State Budget Payment or 2010-11 Based on the State Controller's Office Corrected 2d�6-07 Tax Increment Revenue Summary provided o the Department of Finance 7spend for CRA by Tine Strucarras.kw 9164M4 B83 VWCalcufadon Afadtod: XKIWsl Agency's Total Payment=Agency s Net Tax Inwament X 1(350m"w+2)r 3.763.301.4761+Agerwy's Gross Tax ktrxement X 1(350 million/2)14,742,213,063 WOW to Determine an Indmdual Agency's Payment from tW Tex Increment■1754,753,301,476 or 0.046601722 kaipiw to Determine an Individual Agency s paymsm from QM Tax kKwo twd 0175,000,001Y 4.742.213,063 or 0/13002602 Ida.The follovang agencies had no tepwied 2006-07 tax kcremsnt:WiNows,%usanvi%.Lasssn,Tiburon,Merced County,Dos Palos,Del Ray Osks and RarwW Cordove. 2MMI ERAF ToW Agency EW 20MM Tax trtcM Mtn Net of aebmited 21PI -1I EW Nd Groat Payment for 2010- Paymem 2008417 Oro"Tax kw Mnent 11 Redev ant klMha tea' �.� 10,663,704 400,533 708.353 tedevelopmMrt Agency or the CourMY of San 6er ro e.511" 662 1.322.023 48,786 98,436 'wentyratte Palms Redevelopment Agency , 67,741 U, 14,674,885 882,407 27,001,236 006,416 1,678,B23 lespena Redevolopmanl Agency 303,177 18,283 457,183 13,871 35,156 ball"Redevelopment Agency5,926,740 21 tedavebpmenl Agency 0100 City of Redlands 5.804.297 272,700 ,712 401,442 , Ipa Redevelopment , 031,031 43.295 1.277,461 47,142 90.437 17,024,140 861,448 1.364.070 tsdavelopment Agency of the Gty of ChMD 15,100,500 702.622 tedevelopmenf Agency of Itre CRY of 5ersl0w 3,177.797 147,773 3,474A06 128=9 276,002 tedevelopment Agency For the Oty of Callon 8,706,920 404,887 10,252 378,328 783,215 tedevebptnent Agency of the City 01 Plano 14,949.130 006,180 18,413A44 679,510 1,374,670 6,0e0A97 323.654 8.064,742 330.822 654.507 rows rnd Redevelopment 1.306.371 WINK tA26A03 67.417 130,056 town of Yucca Valley Redevelopment Agency 1ancim Cucamonga RedevalopmsM Agency 71,984.749 3,347.415 88,261 A64 3.257,006 6.604,511 Jpktnd Commw*Redevelopment Agency 6,760,410 315.301 7,946A25 203.247 aW.548 /I"Valley Ecarwmic Development At Ow* 25,069.084 11,20BA70 35=A53 1,290,114 2.607,603 Ilotorvibe Redevek"tent Agency 7.025" 320.714 7,964.918 2007 $20.271 3t4ario Redevelopment Agency 38,490A80 1.700.879 42,MA M IM,21101 3.372,147 mpn"meM Agency of the CIry of Big Bssr Lake 5,040,210 234,707 5,7W,283 210,4141 445,411 4WW vwley Rent Agency 4,040A38 188.329 5.002.422 186,8171 375.148 :ny of Loma Linda Redevelopment Agency 7,011,085 326,060 7,277,112 260,544 594.614 .ity of Moniciek Redevelopment Ay 0.515.125 442,470 11,418,319 42t,36e 863,835 ll ;try of San Berrwrdmu Economic Devakgwnent Agency 29.084.185 1,352,465 29,824,071 1.100.512 2,452,9T7 3owmwMty Redevelopment Agarcy of the City of Grand Terrace 4,451,17e 207,216 SXN4772 241 18 4"6,8Se =0ntana Redevelopment Agency 72,653A80 3,387,822 04.881.721 3A01.382 6,BB0,204 nland Valley Davek"wl Agency 23,802,773 1,106A70 26,175.066 W6A20 2,072,700 Welanlo Redevelopment Agency 6,727AB1 3112.11MI 6.890.020 254,260 567,118 3".531,130 18.3".906 48�,708,tt81 17A60,318 38,10e,066 N7 cA ,y u ;llll +F t„ ov DEPARTMENT OF °4 "b0"%►FINANCE ARNOLO SCHWARZgNCOaZR, poVER14QR! OrIrICr or THE 01RCOTOR nTATe CArITtl�■ Roew 1 146 l 8^CWAMspiT0 0w W 9-5-al 4-4 992 5 WWW.00►.CA.gpV November 12, 2010 TO ALL COUNTY AUDITORS, REDEVELOPMENT AGENCIES,AND THEIR LEGISLATIVE BODIES: Chapter 21, Statutes of 2009, requires redevelopment agencies to shift$350 million in property tax revenues to K-12 schools during the 2010-11 fiscal year via the Supplemental Educational Revenue Augmentation Funds (SERAF)that the Chapter created in each county. The Director of Finance Is required to determine the amount each redevelopment agency shall transfer to the SERAF, and is further required to notify each redevelopment agency those amounts. and legislative body of In accordance with the above requirements, the attached document provides the amount determined for your redevelopment agency. Each redevelopment agency must allocate the specified amount to the county auditor-controller for deposit into the SERAF on or before May 10, 2011. By March 1, 2011 the legislative body shall either report to the county auditor-controller how the redevelopment agency intends to fund a its SERAF obligation, or report that the legislative body intends to fund the SERAF obligation on behalf of the redevelopment agency pursuant to Section 33692 of the Health and Safety Code (HSC). If a redevelopment agency determines that it will not be able to allocate to the SERAF the full amount required, it may enter into an agreement with Its legislative body by February 15, 2011, for the legislative body to fund either the full SERAF obligation, or a portion thereof. Alternatively, pursuant to HSC Section 33690(c), a redevelopment agency that makes a finding that insufficient monies are available to fund its SERAF obligation may borrow from monies contained in its Low and Moderate Income Housing Fund. Redevelopment agencies also may borrow from the amount otherwise required to be remitted in 2010-11 to its Low and Moderate Income Housing Fund. All borrowed funds must be fully repaid by June 30, 2016. If you have any questions regarding this matter, please contact Chris Hill, Principal Program Budget Analyst, at(916) 322-2263. ANA ATOSANTOS Director Attachment 201041 Redevelopment Agency SERAF Shift Health and Safety Code Section 33690.5 175,000,000 on 175,000,000 on Net Tax Net Tax 2006-07 Tax Increment Increment Increment Net Based on Net Based on of Pass- 2006-07 Gross Factor Gross Factor Redevelopment Agency Name Throughs Tax Increment (0.0465534652) (0.0369323105) Total SERAF immunity Redevelopment Agency of the City of Grand Terrace 4,451,173 6.536,772 207,218 241,418 448,636 o � '111. Redevelo meet. Building Better Communities. OMAN FOR IMMEDIATE RELEASE: CONTACT: Kathy Fairbanks August 30, 2010 (916) 443-0872, kfairba_nks(abcfpublicaffairs.com California Redevelopment Association Files Appeal to Fight $2.05 Billion State Raid of Redevelopment Funds Sacramento, CA—The California Redevelopment Association (CRA)today submitted its opening brief on appeal with the Third District Court of Appeal to overturn a $2.05 raid of redevelopment funds by the State. CRA is appealing a May 2010 Sacramento Superior Court decision by Judge Lloyd Connelly which upheld the legality of Assembly BilIX4-26. ABX4-26 was passed in July 2009 as part of the 2009110 state budget and authorized a total of$2.05 billion in local redevelopment tax revenue shifted to fund the state's obligation to schools, In requiring this transfer of redevelopment funds from local communities ultimately to fill state budget holes, ABX4-26 violates the State Constitution. "Unless overturned, Judge Connelly's ruling gives legislators unlimited discretion to change the definition of redevelopment to suit their purpose for the sole reason of plugging the budget deficit,"said John Shirey, executive director of the California Redevelopment Association. "Last year through ABX4-26, legislators took local redevelopment funds under the guise of benefit to schools when all they really did Is short- change schools the same amount of money that would normally come from the State." "If legislators are allowed to redefine and ultimately obstruct the Constitution just because they want to, then there Is no end. Redevelopment funding should be used to create jobs, improve neighborhoods and bolster economic development in blighted areas, That's how the State Constitution says redevelopment funding should be used, that's how it has been used, and our appeal, if upheld, will assure that's how redevelopment funding continues to be used." Article XVI, Section 16 of the California Constitution, approved by voters, states that redevelopment tax increment funds can only be used for specified redevelopment activities, specifically "to finance or refinance . the redevelopment project." Taking redevelopment funds to balance the State's budget, the unquestioned purpose of ABX4-26, does not qualify as a constitutionally permitted use of redevelopment funds, even though State legislators attempted to justify the raid by redefining "redevelopment" and using elaborate findings that education spending benefits redevelopment. Furthermore, the transfer of funds did not result in additional revenues to schools. Under the complex payment transfer terms of ABX4-26, the $2.05 billion was divided into two payments: $1.7 billion in 2010; $350 million in 2011. In each of the two years, redevelopment agencies are forced to turn over their funds to local county auditors. County auditors then transfer that money into a special fund, the Supplemental Educational Revenue Augmentation Fund (SERAF). SERAF funding then is turned over to school districts in redevelopment areas. Finally, the State lowers its contribution to those same school districts by an equal amount_ The first$1,7 billion payment was paid by redevelopment agencies to county auditors on May 10, 2010. The Appeal seeks repayment of those funds by the State and a prohibition of the second payment of$350 million due in 2011_ Timing: CRA hopes the Court of Appeal will rule by May, 2011 before the next payments are due. RESOLUTION NO. 2011- A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE,CALIFORNIA,AMENDING THE FISCAL YEAR 2010-11 COMMUNITY REDEVELOPMENT AGENCY BUDGET AND ALLOCATING A DEPOSIT INTO THE SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND WHEREAS,the California Budget Act of 2009, requires redevelopment agencies to shift property tax revenue to K-12 schools or the county office of education during fiscal year 2009-10 and 2010-11; and WHEREAS, such funds are required by the California Budget Act of 2009 to be transferred to the county auditor and be deposited in the Supplemental Educational Revenue Augmentation Fund(SERAF) no later than May 10, 2011; and WHEREAS,the redevelopment agency is required to determine that it has available funds to fund the required SERAF transfer and that, if needed, such payment may come from redevelopment low mod housing funds and, if needed, such payment may come from general funds of the city or any other legal source of funds; and WHEREAS,the governing board must communicate to the county auditor its intention to remit such SERAF transfer payment to the county auditor no later than March 1, 2011; and WHEREAS,the California Department of Finance has determined that the Community Redevelopment Agency of Grand Terrace share of the 2011 SERAF transfer payment in accordance with Health and Safety Code §33690 to be in the amount of $448,636; and WHEREAS,the Board of Directors adopted the 2010-11 fiscal year budget of the Community Redevelopment Agency of Grand Terrace and appropriated funds in accordance with the State Budget Act of 2009 and ABx 4-26; and WHEREAS,the governing board believes that the California Budget Act of 2009 requirement to shift property taxes from redevelopment agencies to K-12 schools or the county office of education is improper, illegal and furthermore supports the efforts by the California Redevelopment Association and the City of Fountain Valley Community Redevelopment Agency in a lawsuit and subsequent appeal filed in Sacramento Superior Court on October 20, 2009, seeking to block sections of budget trailer bill ABx 4-26, which was approved as part of the FY 2009-10 and FY 2010-11 State budget; NOW THEREFORE, the Board of Directors of the Community Redevelopment \gency of Grand Terrace does hereby resolve, declare, determine, and order as follows: Section 1. There are sufficient funds in the unreserved, undesignated non-housing l Fund Balance Reserves of the Community Redevelopment Agency to pay the determined SERAF transfer payment for FY 2010-11. Section 2. The Agency will remit the required SERAF transfer from unreserved, undesignated non-housing fund balance reserves of the Community Redevelopment Agency, as determined by the Department of Finance, and advise the County Auditor Controller its intent to deposit 5448,636 into the Educational Revenue Augmentation Fund no later than May 10, 2011. Section 3. The Agency reserves the right to a receive an immediate refund from the state or county auditor should the requirement to shift property taxes from the redevelopment agency, contained in the California Budget Act of 2009, be determined illegal or invalid at a later date. PASSED, APPROVED, AND ADOPTED this 8th day of February, 2011. Attest: Secretary of the Grand Terrace Community Chairman of the Grand Terrace Redevelopment Agency Community Redevelopment Agency CALIFORNIA AGENDA REPORT MEETING DATE: February 8, 2011 Council Item(X) CRA Item (X) TITLE: Potential Fiscal Impacts of Governor's Proposed 2011-12 Budget PRESENTED BY: Betsy M. Adams, City Manager RECOMMENDATION: Receive information and consider if staff should be directed to pursue options to mitigate the loss of revenues if redevelopment agencies are disestablished. BACKGROUND: The information in this staff report was first provided to the Council in the agenda packet for the Workshop on January 25, 2011. The only changes to the staff report for February 8, 2011 Council Meeting are: (1) background section and (2) fourth bullet in the next steps portion of the discussion section, which has been deleted. In lieu of considering the services of a lobbyist, staff recommends that City continue its participation with the efforts of the League of California Cities and the California Redevelopment Association to preserve redevelopment agencies. Concurrent with this, the City will renew its annual membership with the California Redevelopment Agency for$2,065. DISCUSSION: The Governor has issued a proposed budget for 2011-12 which addresses an $8.2 billion deficit in the current year and $17.2 billion deficit next fiscal year($25.4 billion total). The Governor's proposed budget anticipates a weak economic recovery into 2016. To bring the state's budget into balance, the Governor's proposed budget is comprised of three key elements — restructuring the state-local relationship in the delivery of services, voter approved extension of temporary tax increases, and expenditure cuts. The focus of this staff report will be on the proposed restructuring of the state-local relationship which includes a significant realignment of local revenues and could create significant fiscal impacts for the City. It is important to note that a governor's January budget proposal has typically been the starting point of budget negotiations with the Legislature. The Governor's proposed 2011-12 budget has been favorably reviewed by the Legislative Analyst's Office, including the proposal to disestablish redevelopment agencies. The potential impacts to the QU of the Governors proposed 011-12 budget are based upon 4ztormutivn known to staff through January 19, 2011. Written details on the proposed realignment of local revenues. and specifically the disestablishment of redevelopment agencies, _re anticipated to be available in about three weeks. CRA AGENDA ITEM NO. (jovernor s Proposed LU I I-I d budget February 8,2011 Page Number 2 Realignment State-Local Relationship The Governor's proposed realignment of the state-local relationship includes shifting program responsibilities and costs from the state to the counties with funding for this coming from the disestablishment of redevelopment agencies. The fiscal impact to the City of the loss of its Community Redevelopment Agency (CRA) is significant in terns of operating expenditures, funding capital improvements identified in the CRA's Implementation Plan for 2010-2014, and funding of other possible projects in the future. The potential impacts in these three areas, along with the impact to state funding of local law enforcement grants and jail booking fee subventions if the realignment does not occur,will be identified in the following sections of this staff report. CRA Operatin Expenses The following operating expenses are allocated to the CRA in the City's Fiscal Year (FY) 2010- 11 budget: Description $ Personnel Costs 484,568 Maintenance&Operations 350,137 Overhead Cost Allocation 380,073 Total 1,214,778 Source is page 199 of FY 2010/I 1 adopted budget. In Operations & Maintenance, there is $114,903 which is paid to the County for administering the pass through of the CRA property tax increment. As this is similar to a contractual obligation, staff at this point in time believes the City will continue to receive increment to offset this expense. This would reduce the City's exposure in Maintenance & Operations, which is largely agreements for professional services, to $235,234 as shown below: Description $ Personnel Costs 484,568 Maintenance & Operations 235,234 Overhead Cost Allocation 380,073 Total 1,099,875 If the Governor's proposal to disestablish redevelopment agencies comes to fruition, the City may receive an estimated additional $200,000 in property tax revenue in FY 2011/12 which would partially offset the loss of nearly $1.1 million in operating expenses currently allocated to the CRA. The City would need to address, before July 1, how to deal with the loss of approximately $900.000 in redevelopment revenue used for operating expenses. The General Fund operating budget is not in a position to absorb this without making corresponding decreases elsewhere. Minimal growth in general revenues is anticipated in FY 2011-12. The FY 2010-11 operating budget projects General Fund revenues to be $ $4.404,539 and expenditures to be $4,843,812 with the shortfall to be covered by reserves. The $900.000 loss of redevelopment revenue is equivalent to 20%of the General Fund revenues this fiscal year. Governor's Proposed 2011-12 Budget February 8,2011 Page Number 3 The two largest expenses in the General Fund operating budget are personnel costs at$2,050,383 and law enforcement services (primarily the contract with the Sheriff s Department) at $2,025,569. It should be noted that the $2,050,383 in personnel costs includes the savings from the temporary reduction in work week (from 40 hours to 36 hours) implemented in May 2010. Also, Child Care Services comprises $754,228 of the general fund personnel costs. This department's revenue exceeds its expenditures and covers its cost allocation of$164,398 thus it is not likely significant budget reductions would be made in this department to offset the loss of redevelopment funds for operating expenses. There are 14 positions for which a portion is directly allocated to the CRA, comprising the $484,568 in personnel costs noted in the previous table. A listing of these positions follows: # Title Capital Low/Mod Total Projects Housing CRA Fund 32 Fund 34 1 City Manager 15% 10% 25% 21 Assistant to the City Manager 15% 10% 25% 3 City Clerk 15% 10% 25% 4 Deputy City Clerk 15% 10% 25% 5 Finance Director 15% 10% 25% 6 Senior Account Technician 15% 10% 25% 7 Account Clerk 15% 10% 25% 8 1 Building& Safety/Public Works Director 20% 20% 40% 9 Code Enforcement Officer 0 60% 60% 10 Secretary 40% 0 40% 11 Community& Economic Development Director 40% 10% 50% 12 Senior Planner 20% 10% 30% 13 Management Analyst 50% 0 50% 14 City Attorney* 50% 0 50% *Provided by contract service. The City has 20 full-time employees, excluding Child Care Services and including 13 of the positions listed above. As part of the budget process for FY 2011-12, staff is prepared to develop alternatives for Council consideration to address the potential loss of nearly $900,000 in redevelopment funds for operational expenses. CRA Implementation Plan Proiects for 2010-2014 When the Council, as the Agency Board, adopted the CPA Implementation Plan for 2010-2014, 14 non-housing redevelopment projects with a total preliminary cost estimate of$4,940,000 were included. Three of these projects have been completed — Grand Terrace Road reconstruction, Grand Terrace Road landscaping, and Public Message Sign Project. Three projects are in progress — High School Storm and Signal Improvements, Senior Center Commercial Kitchen Improvements, and Baseball Park Project. If the Governor prevails in disestablishing redevelopment agencies, the following projects in the CRA Implementation Plan (totaling $4.195.000) could loose funding: Governor's Proposed 2011-12 Budget February 8,2011 Page Number 4 # I Project Description $ 1 Mixed Use Specific Plan—continue land assembly 2,000,000 2 Barton Road Infrastructure Improvements 500,000 3 Land Assembly on Barton Road 500,000 4 Barton Road Utility Under grounding 275,000 5 Michigan Street Im rovements—desip& right-of-way acquisition 400,000 6 Barton Road Specific Plan Update 150,000 7 Commercial Improvement Grant Projects 300,000 0 8 Vista Grande Park Project 70,000 CRA Capital Projects, Fund 32, has fund balance available for these projects. There is concern that if redevelopment agencies are disestablished that fund balances may be taken by the state. Possible Future CRA Projects When the Council, as the Agency Board, adopted the Plan Amendment for the CRA last year there was discussion on potentially issuing bonds in the future for additional redevelopment projects. It was tentatively planned to begin seeking public input on possible projects after the adoption of the FY 2011-12 budget (e.g. summer 2011). As the Governor hopes to disestablish redevelopment agencies by July 1, 2011, a decision as to whether or not to issue bonds or other debt would need to be made quickly. Preliminary estimates indicate that the CRA has tax increment available to issue up to an additional $20 million in debt. Staff has developed a list of potential infrastructure projects which could be considered for such debt funding: # Project Description Preliminary Cost Estimate 1 Union Pacific/Barton Bride 500,000 2 Michigan Street Improvements—construction 3,000,000 3 Storm Drain/Street Rehabilitations — Van Buren, Pico, Michigan & Main 12,000,000 Streets 4 Mt.Vernon Slope Stabilization—Grand Terrace Road to City Limit 2,000,000 5 Infrastructure Study for South West Commercial Zone 300,000 6 infrastructure for South West Commercial Zone 2,000,000 Total 19,800,Oo0 It is important to note, if the council has an interest in having the CRA issue debt, that it is possible to substitute projects in the future. The California Redevelopment Association has advised redevelopment agencies to not rush to issue debt or spend redevelopment funds while it may still be possible to do so. As of January 18, three cities have held special meetings to do the opposite of this recommendation — Los Angeles authorized $930 million in redevelopment projects. Fremont authorized $140 million and Citrus Helahts authorized $60 million. Governor's Proposed 2011-12 Budget February 8,2011 Page Number 5 In addition to the significant fiscal ramifications to the City if redevelopment agencies are disestablished, the Governor's proposed budget could also place some local law enforcement funding at risk. State Fundiniz of Local Law Enforcement The Governor's proposed budget includes funding for local law enforcement grants and booking fee subventions to be backfilled on a dollar-for-dollar basis with realignment funding which includes the disestablishment of redevelopment agencies. If the state-local realignment were not to occur, funding for these programs may be at risk. For the City, this could mean increased annual public safety costs of approximately $136,000 — loss of $100,000 Citizens' Option for Public Safety Program grant plus loss of Jail Booking Fee Subventions. Next Steas The Governor's proposed state-local restructuring/realignment, including the disestablishment of redevelopment agencies, could create serious fiscal challenges for the City. In the short-term, absent an infusion of $900,00 in new revenues, services provided by the City beyond public safety could likely be reduced to only those legally mandated or necessary to be an incorporated city. In addition, the majority of the City's infrastructure needs could not be met unless local funding was established. There are several questions for the Council to consider in providing general direction to staff on whether or not to attempt to preserve the City's redevelopment funds in light of the Governor's proposed budget for 2011-12. All of these items would require formal Council and/or Agency Board action at a public meeting to implement. ■ Should staff determine how redevelopment bonds, or any other type of debt, could be issued? ■ Should staff explore whether creating an Economic Development Corporation or a Local housing Authority could protect the existing fund balance in Fund 32 and Fund 34? ■ Should staff explore how CRA owned property could be transferred to the City, or other agency such as listed above, in the event it is determined that counties instead of cities are the successor local agencies to be created if redevelopment agencies are disestablished? FISCAL IMPACT: The Governor's proposed state budget for FY 2011-12 could impact the City in three areas if redevelopment agencies are disestablished: 1. Approximately $900,000 in redevelopment revenue for operating expenses would no longer be available in FY 2011-12. 2. Funding of$4,195,000 for eight projects in the CRA Implementation Plan for 2010-2014 may no longer be available. 3. Funding of up to $20,000,000 for infrastructure projects would no longer be possible. If the proposed state-local realignment, including disestablishing redevelopment agencies, does not occur then the dollar-for-dollar backtill funding for state funded local law enforcement programs could be at risk. For the City, this could impact the following law enforcement funds: Governor's Proposed 2011-12 Budget February 8,2011 Page Number 6 1. Citizens' Option for Public Safety Program grand funding of $100,000 annually may no longer be available. 2. Jail Booking Fee Subventions of up to$36,000 annually may no longer be available. Respectfull submitted, Betsy A Adams City Manager ATTACHMENTS: None. 0 0 vchlist Voucher List Page: 1 02101/2011 1:36:14PM CITY OF GRAND TERRACE Bank code: bola Voucher flats Vendor Invoice DescriptionlAccount Amount 66305 1/24/2011 010097 NEXTEL COMMUNICATIONS 410575025-100 NovlDec Wireless Srv-Maint/C Care 10-175-240-OOD-000 315.70 10-440-235-000-000 48.10 Total: 363.80 66306 1/24/2011 003210 DEPT 32-2500233683 9121641 Neighborhood Imp.Grant-Chavez 32-600-3054000-000 1,D03.57 Total: 1,003.57 66307 1/24/2011 011007 BLUE SHIELD OF CALIFORNIA Feb J04365575-9 Feb Health Insurance-Berry Family 10-180-142-MO-OW 978.89 Total: 978.89 66308 1/24/2011 001907 COSTCO#478 0478 08 0556 48 C.CARE SUPPLIES 10-440-220-000-000 18375 Total: 183.76 66309 1/24/2011 011071 STANCKIEWITZ,W. Feb 2011 Health Ins. Reimbursement-Stanckiewitz 10-110-1424000-000 415.00 Total: 415.00 66310 1/24/2011 006285 RIVERSIDE HIGHLAND WATER CO 0240M1 Meter Charge Billing Error-Balance Due 10450-23MOD-000 266.88 Total: 266.88 66311 1/24/2011 001213 AT&T Jan 2010 Jan/Feb Phones&Internet Service 10-19D-235-000-000 811.36 10440-235-0004)DO 448.92 10450-235-000-000 46.42 10-805-235-000-000 159.33 10-808-235-ODO-000 94.35 Total: 1,660.38 66312 1/25/2011 001206 ARROWHEAD CREDIT UNION Dec 2010/Jan 201 Dec/Jan Visa Charges Page: 1 COUNCIL AGENDA ITEM NO.31 vchlist Voucher List Page. 2 0210112011 1:35:14PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice DescriptionlAccount Amount 66312 1,25/2011 001206 ARROWHEAD CREDIT UNION (Conl' ued) 10-440-223-000-000 C.Care Light Charger 36.91 10-110-2704)00-000 Flight-Council,League of CA Cities 453.80 10440-219-000-000 C.Care Classroom Supplies 324.95 10-440-225-0004)00 C.Care Christmas Day Camp 82.46 10-190-210-000-000 Postage Meter Labels 75.72 10-195-245-000-000 Maintenance Supplies 569.77 10-450-245-000-000 Maintenance Supplies 456.66 Total: 2,000.27 66313 1/27/2011 001840 CITY OF COLTON September 2010 September Wastewater Treatment 21-570-80240004)00 99.404 06 Total: 99,404.06 66314 1131/2011 001840 CITY OF COLTON October 2010 October Waterwaste Treatment 21-570-802-000-000 100,099.33 Total: 100,099.33 66315 V3112011 001840 CITY OF COLTON November 2010 November Waterwaste Treatment 21-570-802-000-000 100,194,03 Total: 100,194.03 66316 1 131/2011 006720 SO CA.EDISON COMPANY CON 201092155 Pico Park Grafting Consent processing Fee 32-200-255-000-000 3,500.00 Total: 3,600.00 66317 2/1/2011 011110 TIME WARNER CABLE Jan 844840...382E JAN/FEB CABLE&INTERNET SERVICE 10-805-238-0004XH) 58.91 Total: 58.91 66318 2/112011 011110 TIME WARNER CABLE .tan 844840..3817 JANIFEB CABLE A INTERNET SERVICE 10-805-238-000-000 5891 Total: 68.91 66319 2/1120 1 001024 UNITED STATES TREASURY 254843 JAN. SR.NEWSLETTER PRINTING 10-805-222-000-000 9051 Total: 90.51 Page. 2 0 a 0 vchlist Voucher List Page: 3 0210112011 1:35:14PM CITY OF GRAND TERRACE Bank code. bofa Voucher Date Vendor Invoke DescrlptionlAccount Amount 66320 2/8/2011 001072 ADT SECURITY SERVICES 120623897 3rd Qt 3RD QTR SR.CTR SECURITY MONITORING 10-805-245-000-000 160.83 Total: 160.83 66321 218/2011 011143 ALBERT A.WEBB ASSOCIATES 104187 NOVIDEC CONSTRUCTION MGTIINSPECT SRVS 46-900-310-004-000 3,155.96 Total: 3,155.96 66322 2/8/2011 010293 AVAYA, INC. 2730715275 JAN/FEB PHONENOICE MAIL MAINT 10-190-246-000-000 183.46 Total: 183.46 66323 2/8/2011 001383 BARR DOOR INC. 14261 City Hall Door Repairs 10-195-245-000-000 175.33 Total: 176.33 66324 218/2011 011170 BURRTEC WASTE INDUSTRIES, INC. 01092011 12/8/10 Tax Roll Delinq.Trash Fees 10-200-02 41,28 10-200-14 -13.76 23-302-90-00 7,987.53 10-200-01 -1,198.13 10-200-09 -279,56 01092011A 12/14/10 Tax Roll Delinq.Trash Fees 10-200-01 -1,216.56 10-200-09 -283.86 10-200-02 44.16 10-200-14 -14.72 23-302-90-00 8,110.36 12092010 11/18/10 Tax Roll Delinq.Trash Fees 10-200-01 -171.87 10-190-215-0004= -142.80 10-200-09 40.10 10-200-02 -5.76 10-200-14 -1.92 23-302-90-00 1,145.82 Total: 13,789.23 Page- 3 vchlist Voucher List Page: 4 02 O112011 1:36:14PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66325 2/8/2011 010403 CITY OF REDLANDS AR130151 December CNG Fuel 34-800-272-000-000 27.85 10-175-2724=4100 29.30 Total: 57.15 66326 2/8/2011 010866 CIVIC PLUS 86851 FEBRUARY WEBSITE MAINT FEE 10-125-25MOD-000 633.25 Total: 633.25 66327 2/812011 001867 COMMERCIAL LANDSCAPE SUPPLY 169773 LANDSCAPE SUPPLIES 10450-245-0004100 155.28 169921 LANDSCAPE SUPPLIES 1045D-245-000-000 53.76 170127 LANDSCAPE SUPPLIES 1045D-245-0OD4)00 464.97 Total: 674.01 66328 2/8/2011 001930 DAILY JOURNAL CORPORATION 32014423 JAN NOTICE INVITING BIDS 10-125-2304XX0 DO 242.00 Total: 242.00 66329 2/8/2011 010711 DANKA FINANCIAL SERVICES 73937148 FEB. E-STUDIO 350 TOSHIBA COPIER 10-172-246-0004)00 79.78 10-175 24"00-000 79.79 Total: 169.67 66330 2/8/2011 011061 EZ SUNNYDAY LANDSCAPE 11486 RETENTION-G.T. RD. LANDSCAPE IMPS 32-600-320-000-000 3,767.50 Total: 3,767.50 66331 218/2011 011106 FRACO ENTERPRISES INC 300.7 TITLE REPORT REIMBURSEMENT 32-600-3124)00-000 400.00 Total: 400.00 2 011 002740 FRUIT GROWERS SUPPLY 90689461 GLOVES 10450-245-000-000 2897 Total; 28.97 Page: 4 0 Q vchlist Voucher List Page: 5 0210112011 1:35:14PM CITY OF GRAND TERRACE Bank code: bola Voucher Date Vendor Invoice DescriptionlAccount Amount 66333 2/8/2011 002795 GARCIA, LEE ANN Feb 2011 Feb. Health Insurance Reimbursement 10-110-142-000-000 427.58 Total: 427.68 66334 2/8/2011 003152 HARPER&BURNS LLPN Dec 2010 December Legal Services 32-200-251-000-000 4,674.37 10-160-250-000-000 4.674.36 Total, 9,348.75 66335 2/8/2011 011097 HARRIS TRANSFER 201012-87 Sand Bags-Fire Station 10-195-245-000-000 201.19 Total: 201.19 66336 2/8/2011 003171 HINDERLITER de LLAMAS&ASSOC. 0017479-IN 3rd Qtr Sales Tax Services 10-140-250-000-000 487.50 32-200-255-000-000 487.50 Total: 976.00 66337 2/8/2011 003216 HOUSTON&HARRIS PCS, INC. 10-16364 Emerg Hydrowash-Wren 12/23/10 10-190-702-001-000 7,197.50 10-16377 Emerg.Hydrowash-Wren 12/23/10 10-190-702-001-000 3.000.00 Total: 10,197.50 56338 2/8/2011 010872 J&L EQUIPMENT AND SERVICE 01007A City Hall Generator Service 10-195-246-000-000 569.03 Total: 569.03 66339 2/8/2011 002727 J.R.FREEMAN COMPANY 454692-0 Name Plate-Councilmember Hayes 10-110-210-000-000 14.08 Total: 14.08 66340 2/8/2011 004320 LAWNMOWER CENTER 10345 Extension Pole for Trimmer 10-195-245-000-000 21.74 Total: 21.74 66341 218/2011 004352 LEAGUE OF CALIFORNIA CITIES 104899 2011 Membership Dues 10-190-265-000-000 5507.00 Page 5 vchlist Voucher List Page: 6 02101/2011 1:35:14PM CITY OF GRAND TERRACE Bank code; bofa Voucher Date Vendor Invoice DescriptionlAccounl Amount 66341 2/8/2011 004352 LEAGUE OF CALIFORNIA CITIES (Continued) Total: 6,507.00 66342 2/812011 004670 MIRACLE MILE CAR WASH 687139 NOV.VEHICLE MAINTENANCE 10-175-272-000-000 29.95 Total: 29.95 66343 2/8/2011 005400 OFFICE DEPOT 544139405001 Cashier Receipt Ribbons 10-140-210-000-000 26.82 544477771001 CR 535942391001-Wrong Items 10-120-210-000-000 -322.40 545515675001 CR 544139405001 -WRONG ITEM 10-140-210-0004000 -26.82 547200304001 Copy Paper 10-190-212-000-000 215.26 548040267001 Fax Machine-C.Care 10-440-700-000-000 195.74 548042535001 Fax Machine Toner/Supplies-C.Care 10-440-246-000-000 211.86 549065961001 Office Suppliesf oner 16-120-210-000-000 34679 Total: 647.25 66344 2/8/2011 011155 PALM CANYON CONTRACTORS INC 12783 RETENTION BILLING-G.T. RD.(BID 10-02) 46-900-310-002-000 20,907.90 Total: 20,907.90 66345 2/8/2011 011074 REDFLEX TRAFFIC SYSTEMS 29822 December Contract Services 17-900-255-000-000 4.94335 Total: 4,943.36 66346 218/2011 006242 RIVCOMM INC 104218 Emerg.Light Install-Ford Escape 34-000-273-000-000 38500 7nlal 385.00 66347 2/8/2011 006285 RIVERSIDE HIGHLAND WATER CO 01202011 22747 Barton Rd-Transfer Fee 4 Shares 32-200-210-000-000 6060 Page 6 0 0 vchlist Voucher list Page: 7 0210112011 1:35:14PM CITY OF GRAND TERRACE Bank code: bola Voucher date Vendor Invoke DescriptionlAccount Amount 66347 21B12011 006285 RIVERSIDE HIGHLAND WATER CO (Continued) Total: 60.60 66348 21B12011 006310 ROADRUNNER SELF STORAGE INC. 12318 FEBRUARY STORAGE RENTAL 10-140-241-000-000 119.00 Total: 119.00 66349 2/8/2011 0065i0 S.B_COUNTY INFORMATION 10859 December Pager Access 10-175-240-OOD-000 9.00 Total: 9.00 66350 2/8/2011 006531 S.B_COUNTY SHERIFF 10296 1ST QTR(FY 10-11) 10-010-256-00D-000 5,000.00 10-010-2504H00-000 4,544.74 10-41 D-220-000-000 6,239.39 Total: 16,784.13 60351 21B12011 006504 S.B. FIRE DEPT.IHAZ.MATERIAL GT311CC 3RD QTR HAZ WASTE SERVICES 10-187-258-OOD-000 3,963.75 Total: 3,963.75 66352 21B12011 007005 SO CAL LOCKSMITH 13644 Key-Rollins Park 10450-245-000-000 17.18 13788 Keys-Rollins Park Electrical Box 10450-245-000-000 32.58 Total: 49.76 6635 218/2011 006898 SYSCO FOOD SERVICES OF L.A. 1011911342 C CARE FOOD&SUPPLIES 10-440-220-0Oi-000 529.28 1012619670 C CARE FOOD&SUPPLIES 10-440-220-0DO-000 40662 Total: 935.90 66354 2/8/2011 010712 TASO TECH, INC. 779 Eden Support 10-140-250-000-000 31500 Total: 316.00 66355 2/8/2011 007032 TRAFFIC CONTROL SERVICES INC 1008840 Stormdamage Signs-Vivienda&Newport Page. 7 vchlist Voucher List Page• 8 02/0112011 1:36:14PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice DescriptionlAccount Amount 66355 2/8/2011 007032 TRAFFIC CONTROL SERVICES INC_ (Continued) 10-190-702-001-000 219.28 10-195-2454000-000 89.83 1009023 General Maint.L Paddle w/Reflectors 10-195-245-000-000 130.50 Total: 439.61 66356 2/8/2011 007399 US BANK TRUST NAIL ASSOC. 786694000 Debt Service RDA TAB Senes 2004 33-300-208-000-OW 68,437,50 Total: 68,437.50 66357 2/8/2011 007539 VALLEY TIRE COMPANY 93864 FORD F-250 FLAT TIRE REPAIR 10-175-272-000-000 20.00 93883 FORD F-150 FLAT TIRE REPAIR 10-175-272-00D-000 15.00 Total: 36.00 66358 2/8/2011 011169 VEGA, MARIBEL 01112011 Credit Due-Disenroiled from C.Care 10-440-28 71.62 Total: 71.62 66359 2/8/2011 007880 WEST GROUP 822122529 DEC/JAN CA CODE UPDATES 10-125-250-OOD-000 483.94 Total: 483.94 66360 2/8/2011 007920 WILLDAN 002-10838 Geotechnical Srvs-Emergency Repair 10-190-702-001-000 1,750.00 Total: 1,750.00 56 Vouchers for bank code: 40fa Bank total: 480,236.68 66 Vouchers in this report Tab]vouchers: 480,236.68 Page: 8 V City of Grand Terrace Warrant Register Index FD No. Fug Dent No. Dep-adment Nwm General Account Numbers 10 GENERAL FUND 110 CITY COUNCIL 110 SALARIES/WAGES 11 STREET FUND 120 CITY MANAGER 139 EMPLOYEES'BENEFIT PLAN 12 STORM DRAIN FUND 125 CITY CLERK 140 RETIREMENT 13 PARK FUND 140 FINANCE 142 HEALTH/LIFE INSURANCE 14 AB 3229 COPS FUND 160 CITY ATTORNEY 143 WORKERS'COMPENSATION 15 AIR QUALITY IMPROVEMENT FUND 172 BUILDING&SAFETY 1381141 MEDICARE/SUI 16 GAS TAX FUND 175 PUBLIC WORKS 210 OFFICE EXPENSE 17 TRAFFIC SAFETY FUND/TDA FUND 180 COMMUNITY EVENTS 218-219 NON-CAPITAL FURN/SMALL TOOLS 19 FACILITIES DEVELOPMENT FUND 185 RENTAL INSPECTION PROGRAM 220 SPECIAL DEPARTMENTAL EXP 20 MEASURE I FUND 190 GENERAL GOVERNMENT(NON-DEPT) 230 ADVERTISING 21 WASTE WATER DISPOSAL FUND 195 FACILITIES MAINTENANCE 235 COMMUNICATIONS 22 COMMUNITY DEVELOPMENT BLOCK GRANT 370 COMMUNITY&ECONOMIC DEV 238-239 UTILITIES 26 LSCPG/LGHTG ASSESSMENT DIST. 380 MGT INFORMATION SYSTEMS 240-242 RENTS&LEASES 44 BIKE LANE CAPITAL FUND 410 LAW ENFORCEMENT 245-246 MAINT BLDG GRNDS EQUIPMNT 46 STREET IMPROVEMENT PROJECTS 430 RECREATION SERVICES 250-251 PROFESSIONAL SERVICES 47 BARTON RD.BRIDGE PROJECT 440 CHILD CARE 255-256 CONTRACTUAL SERVICES 32 CRA-CAPITAL PROJECTS FUND 450 PARKS MAINTENANCE 260 INSURANCE&SURETY BONDS 33 CRA-DEBT SERVICE FUND 631 STORM DRAIN MAINTENANCE 265 MEMBERSHIPS&DUES 34 CRA-LOW&MOD HOUSING 801 PLANNING COMMISSION 268 TRAINING 802 CRIME PREVENTION UNIT 270 TRAVEL/CONFERENCES/MTGS 804 HISTORICAL&CULTURAL COMM. 272 FUEL&VEHICLE MAINTENANCE 805 SENIOR CITIZENS PROGRAM 570 WASTEWATER TREATMENT 807 PARKS&REC COMMITTEE 33-300 DEBT SERVICE 808 EMERGENCY OPERATIONS PROD. 7XX FACILITIES IMPRV(NO CIP) 700 COMPUTER-RELATED 701 VEHICLES&EQUIPMENT I certify that to the best of my knowledge, the afore-listed checks for payment of City and Community Redevelopment Agency liabilities have been audited by me and are necessary and appropriate for the operation of City and Agency. Bernie Simon, Finance Director PENDING CITY COUNCIL APPROVAL CITY OF GRAND TERRACE CITY COUNCIL MINUTES SPECIAL MEETING -JANUARY 13 2011 A special 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 January 13, 2011 at 6:00 p.m. C PRESENT: Walt Stanckiewitz, Mayor Lee Ann Garcia, Mayor Pro Tem Darcy McNaboe, CounciImember Bernardo Sandoval, Councilmember Gene Hays, Councilmember Betsy M. Adams, City Manager Brenda Mesa, City Clerk Bernard Simon, Finance Director Joyce Powers, Community& Economic Development Director Richard Shields, Building & Safety Director ABSENT: John Harper, City Attorney Sgt. Carlos Espinoza, San Bernardino County Sheriffs Department Rick McClintock, San Bernardino County Fire Department The City Council Workshop was opened with Invocation by Mayor Pro Tern Lee Ann Garcia, followed by the Pledge of Allegiance led by Councilwoman Darcy McNaboe. City Clerk Brenda Mesa, administered the Oath of Office to Gene Hays who was appointed at the January 11,2011 City Council Meeting to fill the unexpired term on the City Council. Councilmember Gene Hays,thanked the Mayor and the City Council for affording him this opportunity to serve a City that he loves. He introduced his mother and brother who were in the audience. PUBLIC COMMENT Charles Hornsby,22656 Brentwood Street,stated that the City is in the position that we are because we don't know who we are. He feels that we are a small town, not Beverly Hills. He stated that we are a middle class community that has been spending too much money. Ann Hornsby, 22656 Brentwood Street, expressed her concern about the Red Light enforcement cameras. She feels that the fines are excessive and the City should consider the financial benefit versus safety. She would like signs to be placed that say "stop before turning right". COUNCIL AGENDA ITEM NO.�C� Council Minutes 01.13-2011 Page 2 Harry Roussos,22051 Grand Terrace Road, feels that the City should not enforce red light violations. Jeffrey Mc Connell suggested that the City look into re-calibrating the signals. Public Workshop on the State Department of Parks and Recreation Grant for a New Park Community and Economic Development Director Joyce Powers, made a presentation indicating that the City Council authorized staff to apply for a State Park Grant to develop a new park in the neighborhood west of I-215 and north of Barton Road, which qualified as an underserved community. The council approval authorized the City Manager to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests necessary for the completion of the grant scope. In November 2010, the State notified the City that the application was selected for funding in the amount of$2,130,636. She indicated that Staff notified the residents in the area surrounding the proposed park site of the workshop and requested that they provide their comments to assist Staff and the Council in determining the next steps. She stated that before staff proceeds with the implementation, they are requesting additional comments from the community and for Council to provide further direction. The City Council and community members discussed amenities included in the plan as well as maintenance issues and cost. A majority ofthe community members present indicated that they support having a park built in their neighborhood. Some residents indicated that they would be willing to help reduce costs to the city by helping with opening and closing the park and possibly pay a small fee associated with the park. Mayor Pro Tern Lee Ann Garcia requested that staff keep the residents informed and let them know what they can expect throughout the process. She also asked for Staffs recommendation related to the fiscal viability of accepting the park grant, City Manager Betsy M.Adams,responded that staff will have more specific information as the park plan is finalized. It was the consensus of the Council(5-0)to authorize the City Manager to sign the contract and return it to the State in order to proceed with the State Park Grant. Mayor Stanckiewitz adjourned the pubic workshop at 8:05 p.m.,until the next City Council Meeting which is scheduled to be held on Tuesday, January 25, 2011 at 6:00 p.m. Council Minuses 0113/2011 Page 3 CITY CLERK of the City of Grand Terrace MAYOR of the City of Grand Terrace CITY OF GRAND TERRACE PENDING CRY COUNCIL APPROVAL CITY COUNCIL MINUTES REGULAR MEETING-JANUARY 25,2011 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 January 25, 2011 at 4:30 p.m. PRESENT: Walt Stanckiewitz, Mayor 0 Lee Ann Garcia, Mayor Pro Tem Darcy McNaboe, Councilmember Bernardo Sandoval, Councilmember Gene Hays, Councilmember Betsy M. Adams, City Manager Brenda Mesa, City Clerk Bernard Simon, Finance Director Joyce Powers, Community&Economic Development Director Richard Shields, Building& Safety Director John Harper, City Attorney Sgt. Carlos Espinoza, San Bernardino County Sheriff's Department Rick McClintock, San Bernardino County Fire Department ABSENT: None O The City Council meeting was opened with Invocation by Mayor Pro Tem Lee Ann Garcia,followed by the Pledge of Allegiance led by Councilman Gene Hays. JOINT CRA/CITY COUNCIL WORKSHOP A Joint CRA/City Council Workshop was held to discuss the following items: l. FY 2009-10 Audit and Restated Fund Balance in FY 2011-12 2. Potential Fiscal Impacts of Governor's Proposed 2011-12 Budget Mayor Stanckiewitz adjourned the CRA/City Council Workshop at 5:52 p.m. ITEMS TO DELETE -None SPECIAL PRESENTATIONS 2A. Recognition of Winter Storm Emergency Response Workers Council Minutes 01.;25/20I 1 Page 2 Mayor Stanckiewitz indicated that this special presentation will be moved to the next City Council Meeting. 2B. Introduce New Detective, Traffic Deputy and Deputy Mayor Stanckiewitz indicated that this special presentation will be moved to the next City 0 Council Meeting. CONSENT CALENDAR Debra Hurst. 22950 Orangewood Court, questioned voucher numbers 466276, #66279, #66289 why are we paying these. At the last Council Meeting she questioned four checks. She received an answer for one of the checks but not the other three. She referred to another check that she questioned a few months ago regarding a seminar that was attended by Bea Cortes that she never received an answer on. CC-2011-09 MOTION BY MAYOR PRO TEM GARCIA,SECOND BY COUNCILMEMBER SANDOVAL,CARRIED 4-0-0-1 (COUNCILMEMBER HAYS ABSTAINED),to approve the following Consent Calendar Items: 3A. Check Register No. Dated 01-25-2011 3B. Waive Full Reading of Ordinances on Agenda 3C. Approval of Minutes of 01-11-2011 3D. Emergency Operations Committee Minutes of 12/07/2010 3E. Historical and Cultural Activities Committee Minutes of 12/06/2010 3F. Treasurer's Report for Quarter Ending September 30, 2010 3G. Treasurer's Report for Quarter Ending December 31,2010 3H. Town Square Project Update PUBLIC COMMENT Tom Roberts. 22111 Newport Avenue #148, congratulated Councilman Hays on his appointment. He stated that over the past three months he has come before the Council to challenge them to become and remain more transparent. He has not seen any action on making the actions in the Council Chambers open and available to the public. It has been indicated that there are technologies available to make this type of interaction with the residents possible. He asked what is being done to research and put in place a way for residents to be able to receive the information discussed and voted on in chambers and when might they expect a response to the need for transparency. He stated that he will be in to look at the plans for Stater Bros. in the morning. He feels that staff is not bound to the Council's decisions. He feels that it could be due to a lack on communication between Council and Staff. He feels that the residents have a right to know what is going on and the Council Minutes 01/25/2011 Page 3 Council as their representatives have the obligation to let them know. Charles Hornsby, 22656 Brentwood, feels that if the previous Council had addressed the issue of the Town Square Project properly the current Council wouldn't be in this position now. From the very start of this project everyone had to know that there would be a tremendous crowding problem and no one did anything about it. The reason nothing was done was because the Council didn't have any guts. They could have stood up to Stater Bros. Somehow this town has survived on the Stater Bros.that we have for 30 years. Everyone has wanted a nicer store but it didn't have to be this big. COUNCIL REPORTS Mayor Pro Tem Lee Ann Garcia, announced that SCAG has a $2,000.00 scholarship available for students that are wanting to go into the planning field. She also announced that Senator Dutton's Office is looking for someone for an internship. She indicated that she will give the information to the City Clerk's Office. She appreciates all of the comments that have been made at the meeting. She is looking forward to future communications with the residents. Councilmember Bernardo Sandoval, stated that technology and transparency are both dear to his heart. He stated that there is a technology called Granicus that would be wonderful for the City. It would allow the City to place the Agenda on-line and would not require any infrastructure improvements in terms of technology internally. You would click on the link on the Agenda and it would go to that specific video for that specific item that is being discussed,unfortunately,the cost for implementation is probably around$50,000.00 with an annual cost of$40,000.00. The current budget crisis will determine what we can and can not do. As soon as he has a full understanding of the budget situation he will bring it up. The RDA is a significant issue for Grand Terrace. He felt that the Governor was never serious about removing RDA because of the catastrophic consequences that it would have across the State. He attended the League of California Cities Conference where he had the opportunity to hear Jerry Brown speak. He is committed to eliminating RDA from municipalities and this will have grave consequences for Grand Terrace. He feels that it is very important that the City get proactive and contact whoever we can at the State level and work with other cities to make sure that this doesn't happen. He looks forward to weaning the City off of RDA, however, to do it this way is wrong. Councilmember Darcy McNaboe, reported that the Grand Terrace Lion's Club held their sight clinic on January 8, 2011. They teamed up with a group called Friends in Sight who travel to different cities with an optometrist and their equipment so they can do examinations for free. They can end up leaving with a pair of glasses that will help them to read or see depending on what their issues are. On January 8"they treated 274 members of the Grand Terrace community. They plan on doing this program again in late July or early August. She Council Minutes 01/25/2011 Page 4 feels that this is a huge benefit to those in the community that don't have the opportunity to go to an eye doctor. She reported that she also attended the League of California Cities Conference from January 19-21, 2011. It is a conference for new Councilmembers and Mayors. It gave them an opportunity to learn about their responsibilities as council members, their legal powers and obligations,their role in land use and planning,communications with new media,financial responsibilities and city revenues and they ended the three day session with the ethics training. The Governor not only showed up for lunch for this conference but he also attended the reception that was held and she had an opportunity to introduce herself and talk to him for a few minutes. It was pretty clear to her that he is looking for every way he can to be through with Redevelopment Agencies. He does not believe that they are good for the State. Although she feels that he is hearing from a lot of cities that the health of the State is really going to depend on its cities and if he does away with redevelopment agencies he will be affecting the health of each of the cities and counties in the State. There are sessions before the senate and the assembly beginning next week and she believes that we are scheduled to have members attend and give testimony on how doing away with the RDA will affect cities and counties. Councilmember Gene Hays, stated that he is aware of Governor Brown's proposal and his desire to de-establish the RDA. He feels that as a City we should take the attitude that let's assume that it is going to happen and then begin to look at alternative sources of finances. One thing that Federal Legislatures are doing now is looking into the different grants that are available. He feels that the City should look into grants. He feels that residents should open their eyes and look at some of the things that they feel can be improved and or addressed through grant money. Ma or Walt Stanckiewitz reported that a workshop was held regarding a park grant that was awarded to the City through the State. He feels that it was a very good workshop that covered pros and cons from both sides. It was kept very informal. The residents of the area saved their park. The City was at a point where we thought we weren't going to be able to do it but the residents stepped up and said that they will do whatever they need to do to make the park happen. He referred to an article in the San Bernardino Sun that indicated that residents of the City of San Bernardino has more poor people than Grand Terrace and more needs for parks than Grand Terrace and they didn't understand why Grand Terrace,Ontario and Calimesa received the grants for parks and they didn't. It is a testament to staff who took the requirements of the grant application and wrote the request for the park to meet the specifics of the grant application. He feels that staff did a great job and congratulated them for their hard work. PUBLIC HEARINGS -None UNFINISHED BUSINESS-None Council Minutes 01/25;'2011 Page 5 NEW BUSINESS 8A. Attendance of Majority of City Council Members at a Meeting of Another Public Agency It was the consensus of the Council to direct staff to prepare a letter to the Colton Joint Unified School District indicating that there is no violation of the Brown Act for the City Council Members to attend meetings of other public agencies and provide individual public comments as long as the individual City Council Members do not discuss City business among themselves. The same would be true for the School Board Members. They would also like the letter to indicate that the Council appreciates the support and attendance of the School Board at the Council Meetings and encourage them to continue this practice and the Council will continue to do the same. They would like copies of this letter to be sent to The San Bernardino County District Attorney and Mr.Navarro. CLOSED SESSION 9A. Conference with Legal Counsel-Existing Litigation GC54956.9-Chambers Group 9B. Labor Negotiations (GC54957.6) Conference with Labor Negotiator - Betsy M. Adams Representing Unrepresented Employees. Virginia Harford. 11825 Arliss Way,does not believe that the Council needs to have Closed Sessions. She feels that they are suspicious. Mayor Stanckiewitz announced that the Council met in closed session regarding existing Litigation per GC54956.9 with Chambers Group and Labor Negotiations per GC54957.6) with Labor Negotiator, Betsy M. Adams representing unrepresented Employees and that there was no reportable action taken. Mayor Stanckiewitz adjourned the meeting at 8:50 p.m.,until the next City Council Meeting which is scheduled to be held on Tuesday,February 8, 2011 at 6:00 p.m. CITY CLERK of the City of Grand Terrace MAYOR of the City of Grand Terrace AU FOR 14IA AGENDA REPORT MEETING DATE: February 8, 2011 Council Item ( X ) CRA Item ( ) TITLE: Amendment to Waste Delivery Agreement between the City of Grand Terrace and the County of San Bernardino PRESENTED BY: Matt Wirz, Management Analyst RECOMMENDATION: Approve Amendment Number (5) to the Waste Delivery Agreement with the County of San Bernardino. BACKGROUND: The County of San Bernardino (County) owns, manages, and operates a sanitary landfill system for the disposal of solid waste generated in the unincorporated area within the County. The facilities have been made available for the disposal of municipal solid waste generated within the cities located within the County. On February 24, 1998 the City of Grand Terrace and the County of San Bernardino entered into a Waste Delivery Agreement (WDA) allowing the City to receive a contracted rate for tip fees. Once a year, during the term of the WDA, the contract rate is adjusted in accordance with the formula described in the WDA. DISCUSSION: The current WDA identifies the publication date of the specific indices used to calculate the annual cost of living adjustment as the quarterly Employment Cost Index (ECI) for December and the annual Producer Price Index (PPI) for February each year. The current index information (which is not actually finalized until a few months later) makes the fee adjustment process difficult since the landfill rates cannot be announced until after the start of the fiscal year. The County of San Bernardino recommends using the data published in September for the indices, which would be finalized in February or March of each year. This would allow adequate time for our City to post the appropriate notices and complete the rate adjustment process if necessary. Staff is requesting City Council signatures on two copies of the amendment. The signed copies will be returned to San Bernardino County Solid Waste Management Division for consideration by the Board of Supervisors. COUNCIL AGENDA ITEM NO. FISCAL IMPACT: None Respectfully submitted, r w Wi Managem A sis Manager Approval: Gil Betsy WAdamsl City Manager ATTACHMENTS: Attachment "A" —Amendment No. 5 to the Waste Delivery Agreement Attachment "A'* WASTE DISPOSAL AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO, CALIFORNIA AND THE CITY OF GRAND TERRACE DATED: February 24, 1998 County Authorization Date: City Authorization Date: 0 County Notice Address: City Notice Address: Solid Waste Management Division City of Grand Terrace 222 Hospitality Lane, 2Id Floor 22796 Barton Road San Bernardino, CA 92415-0017 Grand Terrace, CA 92324 Emergency Contact: Emergency Contact: Gerry Newcombe Betsy M. Adams Deputy Administrative Officer City Manager (909) 386-8703 (909) 824-6621 X226 AMENDMENT NO. 5 TO THE WASTE DISPOSAL AGREEMENT On February 24, 1998 the City of Grand Terrace ("City") and the County of San Bernardino ("County") entered into a Waste Disposal Agreement ("WDA"). The parties hereby amend the WOA, on the Effective Date as provided herein, by their respective execution of this agreement (hereinafter"Amendment'). Recitals. A. Following the adoption of the WDA, changes in law occurred relating to the length of the required notice to be given prior to the adoption of certain fees. B. Recently, the County has adopted a new policy of enacting its revised fees earlier in the calendar year. C. Based on the forgoing, it will assist both the City and the County if the annual cost of living adjustment to the Contract Rate, provided for in Section 4.2(B) of the WDA, is calculated earlier in a given calendar year. To accomplish this goal, the parties have agreed in this Amendment to adjust the dates used to establish the change in the cost of living to an earlier date, thus allowing the earlier calculation of the required annual cost of living adjustment. D. While this Amendment changes the date of the calculation of the change in the cost of living, it does not change the date that such change is effective. The change in the Contract Rate to reflect the annual cost of living adjustment will continue to be effective on July 1 of each year. NOW THEREFORE, in consideration of the forgoing recitals and the following covenants and promises the parties agree as follows: 1. Amended Section 4.2(B) of the WDA. Section 4.2(B) of the WDA is amended to read: (B) Calculation of Escalation. For purposes of Section 4.2(A)(ii), the Contract Rate shall be adjusted in accordance with the formula described in this Section each July 1 during the term hereof, commencing July 1, 1999. The adjustment shall be calculated in accordance with the following formula: Contract Rate = Fixed Portion + [Escalating Portion x Index] Where, Fixed Portion = $10.87 Escalating Portion = $17.63 Index = Price Index, which shall be determined in accordance with the following formula: i = 7[PP14PPI�] + 3[EI,/EI ] PPI, = The Producer Price Index, Industrial Commodities, as published by the United States Department of Labor Statistics in the publication Producer Price Indices, Table 6, for the month of February in the year the adjustment is being made (e.g., the first adjustment will use the February, 1999 value) PPIZ= Producer Price Index, Industrial Commodities for the month of February, 1998 El,= Employment Cost Index, Compensation, Private Industry Workers, O as published by the United States Department of Labor Statistics in the publication Monthly Labor Review, Table 22, for the last quarter of the year preceding the year the adjustment is being made (e.g., the first adjustment will use the last quarter, 1998 value) EIZ= Employment Cost Index, Compensation, Private Industry Workers established for the last quarter of 1997 The adjustment effective on July 1, 2011, and all subsequent adjustments, will be calculated as provided above, except that the parameters of the Index (i.e., 1) shall be defined as follows: PPI,= The Producer Price Index, Industrial Commodities Commodity Data, as published at the United States Department of Labor, Bureau of Labor Statistics web site, Series ID WPU03 thru15 for Othe month of September in the year prior to the year for which the adjustment is being made (e.g., the adjustment effective July 1, 2011 will use the September 2010 value) PPIZ= Producer Price Index, Industrial Commodities Commodity Data for the month of September, 1997 Ell= Employment Cost Index, Total Compensation, Private Industry All Workers, as published at the United States Department of Labor, Bureau of Labor Statistics web site, Series ID: CIU20100000000001 for the last quarter of the year preceding the year for which the adjustment is being made (e.g., the adjustment effective July 1, 2011 will use the third quarter, 2010 value) E12= Employment Cost Index, Compensation, Private Industry All Workers, as published at the United States Department of Labor, Bureau of Labor Statistics web site. Table 3, established for the third quarter of 1997 If at any time either the Employment Cost Index or the Producer Price Index is no longer published. or are otherwise unavailable, then the Cost of Living Adjustment shall be determined by using standard official statistics measuring changes to, respectively, labor costs and cost of materials, as the parties shall mutually agree. All other terms and conditions of Section 4.2 shall remain in full force and effect and are not amended by the provisions of this Amendment. 1 1 1 1 1 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized officers or representatives as of the day and year first above written. CITY OF GRAND TERRACE COUNTY OF SAN BERNARDINO By: By: Name: Print Name , Chairman, Board of Supervisors Title: Date: Date: ATTEST: SIGNED AND CERTIFIED THAT A COPY OF THIS CONTRACT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD Clerk of the Board of Supervisors Of the County of San Bemardino By: City Clerk By: Deputy APPROVED AS TO FORM: APPROVED AS TO FORM: CITY ATTORNEY COUNTY COUNSEL SAN BERNARDINO COUNTY, CALIFORNIA By: By: Date: Date: EXHIBIT A CITIES/TOWNS WITH A WASTE DELIVERY AGREEMENT WITH THE COUNTY OF SAN BERNARDINO 1. ADELANTO 2. APPLE VALLEY 3. BARSTOW 4. BIG BEAR LAKE 0 5. COLTON 6. FONTANA 7. GRAND TERRACE 8. HESPERIA 9. HIGHLAND 10. LOMA LINDA 11. RIALTO 12. SAN BERNARDINO 13. TWENTYNINE PALMS 14. VICTORVILLE 15. YUCAIPA 16. YUCCA VALLEY AGENDA REPORT MEETING DATE: February 8, 2011 Council Item (X) CRA Item ( ) TITLE: Senior Center Kitchen Remodel Change Orders PRESENTED BY: Richard Shields, Director of Building and Safety/Public Works RECOMMENDATION: Appropriate $24,985.38 from unencumbered Redevelopment Capital Project Funds to the Senior Center kitchen project account to fund change orders and provide an additional 8.5% contingency. BACKGROUND: On November 8, 2010 the City Council awarded DJD Construction the contract to remodel the Senior Center kitchen. The Senior Center kitchen remodel was started in late November 2010 and has progressed forward. It is anticipated that the kitchen remodel will be completed in March, 2011. DISCUSSION: DJD Construction performed the demolition of the existing kitchen at which time it was noticed that a number of changes would be needed due to existing construction conditions. Once the drywall was removed in specific areas of the kitchen, DJD discovered that the truss system as shown on the original plans was not an open web truss. The existing utilities located in the truss system could not be used for the new equipment. This discovery has lead to a redesign by adding a chase to the underside of the ceiling to accommodate the water lines, gas lines, and the electrical. The additional cost associated with this change is $3,019.00. The plans for the kitchen show an existing 100 gallon high recovery water heater that will supply hot water to the new kitchen equipment. The existing water heater is a standard 50 gallon water heater not capable of handling the hot water required for a commercial kitchen. The cost to install a new 100 gallon high recovery water heater and the associated plumbing and venting is $7,569.00. The plans also show a floor sink located next to the existing water heater. The floor sink did not exist in the water heater closet. The health department requires this floor COUNCIL AGENDA ITEM NO. sink to drain the nearby hand sink and water heater. The cost to install the new floor sink and associated plumbing is $2,800.00. The plans show the proposed commercial kitchen hood to exhaust directly above the hood canopy located in the kitchen. After demolition of the drywall, it was noticed that the circular roof parapet wall was directly above the proposed hood vent. Staff met with the Fire Department to discuss solutions to reroute the hood vent on the roof without changing the hood location on the floor plans. The Fire Department and City Staff agreed that the vent could be ran through the roof to a plenum that would allow the vent to be ran horizontally on top of the roof away from the parapet and other mechanical equipment. The venting change will involve new plans to be prepared to be reviewed and approved by the Fire Department. The horizontal vent extension on the roof will need to have fire suppression protection. This change will also require that the existing fire sprinklers in this area be relocated. The cost associated with this change is $13,100.00. Over the past few months, Staff has been meeting with our insurance pool JPIA to review City policy and infrastructure. The Senior Center was inspected by JPIA and numerous items identified as needing to be corrected. JPIA requested that a disabled ramp be installed at the back patio of the Senior Center Community Room. The Senior Center was constructed with all of the required exists and required disabled access paths of travel. JPIA suggests that the disabled ramp be made available to remove the possibility of a future lawsuit challenge. The cost associated with this new work is $9,030.00. The disabled ramp was not originally part of the kitchen remodel. The awarded contract for the Senior Center kitchen was $137,391.00. Staff was able to secure CDBG funds that would pick up $80,000.00 of this amount. A 10% contingency fund was also included in the awarded amount that totals $12,490.00. The additional costs mentioned in the change orders above totals $35,518.00. Staff is requesting an additional $23,028.00 be appropriated to cover the unforeseen problems with the construction and also appropriate 8.5% contingency. FISCAL IMPACT: County Supervisor Deny recently allocated additional CDBG funds totaling $25,000.00 to this project. The funds have been placed in the City's account. The total budget with the change orders is now $172,909.00 of which $105,000.00 is funded through the CDBG Program and the remainder funded by the Agency. Respectfully submitted, Ric and Shi ,*Dire&o-r-1"uildinge and Safety/Public Works .. I--9 't 11 , �-k3k; - `} - v -) Manager Approval: ��— 'l'' Betsy Adams City Manager ATTACHMENTS: Change Orders 0 d D. J. D. Group, Inc. Construction & Construction Management CHANGE IN PLANS & SPECIFICATIONS JOB: GRAND TERRACE SENIOR CITIZENS COMMERCIAL KITCHEN DATE: 1113111 CONTRACT NO: GTC 12.708 PROJECT NO: 10-04 SUBJECT 1: WATER HEATER $7,569.00 1. Labor & materials to replace with a new 100 Gal. High recovery water heater 2. New 6" Vent/Cap/Flashing 3. New 1 %" cold water supply line to water heater with shut off valve 4. New 1" hot & cold water line to dish washer 5. Gas line to water heater with shut off valve SUBJECT 2: FLOOR SINK 2,800.00 1. Labor & Materials for installation of new floor sink, pipes, dig, back fill, saw cut, and remove concrete 2. Patch concrete 3. Repair Tile 4. 12 In. X 12 In. Floor Sink SUBJECT 3: GAS LINES TO STOVE $3,019.00 1. Labor & Materials for upgraded pipes 2. New 1 In. Gas line to stove 3. Dry wall chases from water heater to stove SUBJECT 4: EXHAUST DUCT 10,600.00 1. Extend duct on roof 12' for exhaust hood 2. Fire protection in 12' duct 3- Exchange smoke detector over hood to a heat detector 4. Relocate fire sprinkler head 5. Permit for Fire Department SUBJECT 5- MAKE UP AIR 2,500.00 1. Extend duct 5' on roof 2. Relocate fire strobe Acceptance of proposal Sign and Date 2225 Trafalgar Ave., Riverside, CA 92506 ♦ office: (951)784-0007 • Fax:(951)784-0087 D. J. D. Grout). Inc. Construction & Construction Management Proposal 0 Jan. 25, 2011 To: City of Grand Terrace Project: Senior Center Commercial Kitchen Attn: Rich Shields W.O. # 12.708 This proposal includes material and labor for the following: R&R concrete steps and change to a ramp 0 • Demo: 25'x4'-6" concrete steps • Haul concrete to recycle yard • Demo: 2ea. 25' steel railing • Form & pour new 25'x5' ramp wl thickened edge • Install 12"ADA scouring at top & bottom of ramp • Includes concrete pump • Fabricate & install 2ea. 25' ADA steel handrail wl wheelchair bar • Paint handrail to match existing railings The new ramp will be aprox. 9.7% slope TOTAL $9,030.00 Acceptance of Proposal Sign and Date 2225 Trafalgar Ave., Riverside, CA 92506 • Office: (951) 784-0007 ♦ Fax: (951) 784-0087 Please see Item 3 under the CRA for full Report. COUNCIL AGENDA ITEM NO. � Please see item 5 under the CRA for full Report. 0 0 COUNCIL AGENDA ITEM NO. CALIFOAHIA AGENDA REPORT MEETING DATE: February 8, 2011 Council Item(X) CRA Item{ ) TITLE: Section 125 Plan PRESENTED BY: Betsy M. Adams, City Manager RECOMMENDATION: Approve Section 125 Flexible Benefit Plan Adoption Agreement, adopt Resolution No. 2011- for adoption of Health Flexible Benefits Plan and authorize City Manager to sign Broker of Record Designation with Keenan &Associates BACKGROUND: On April 24, 2003, the Council approved a restated Section 125 Plan so that cafeteria benefits available to employees under the plan remained eligible for exclusion from Federal and State income tax consistent with Section 125 of the Internal Revenue Code (IRC) of 1986. As a follow up to the work on reportable earnings of elected and appointed officials, the Council during Closed Session directed the City's tax consultant to review employee benefits to ensure compliance with existing tax regulations. The review by Diehl, Evans& Company, LLP identified that the City's Section 125 Plan had not been updated for the changes required by the IRC in the 2007 Proposed Regulations. DISCUSSION: On October 11, 2010, the City issued a Request for Qualifications (RFQ), for a broker to provide a Section 125 Plan, plan administration and employee benefit program. The RFQ was sent to the City's two current brokers (Benefits Resources and Roberge-Fries Insurance) and to two brokers known to offer Section 125 Plans compliant with current IRC regulations (Aflac Incorporated and Keenan& Associates). The City received responses from Benefits Resources and Keenan& Associates. A committee was formed to review the responses consisting of the City Manager, Finance Director, Assistant to the City Manager and Senior Accounting Technician. The committee reviewed both responses and determined that Keenan & Associates provided the most comprehensive scope of services and best met the City's needs. There is no cost to the City for the Section 125 Plan provided through Keenan & Associates (Keenan) by American Fidelity Assurance Company (American Fidelity) while Benefits Resources had a$5,000 fee to update its plan for the City. As part of implementing its Section 125 Flexible Benefit Plan, Keenan does require the City to designate Keenan as the broker of record and American Fidelity will have the ability to offer the City's employees voluntary benefit plans for purchase at their own expense (e.g. voluntary life insurance, accident insurance, cancer insurance, etc.). -Xfter the review committee selected Keenan, its sample plan document was reviewed by the City's tax consultant who advised that the plan meets ICR Section 125 requirements including the 2007 Proposed Regulations along with many of the provisions required by the new Federal COUNCIL AGENDA ITEM NO.(:-' t Section 125 Plan February 8,2011 Page Number 2 Health Care Bills. Keenan will be responsible for keeping the City's Section 125 Flexible Benefit Plan current with IRC regulations and will do so at no cost to the City. Other benefits for the City in selecting Keenan as its broker for its Section 125 Plan are noted below. ■ Keenan has more than 950 public sector clients in California, the most of any broker in the state, which helps it to ensure favorable rates and services while keeping well versed in the legislative constraints and mandates often unique to this sector. Briefings in these areas will be provided electronically to the City. • Keenan will prepare an annual benefits enrollment guide and will handle the open enrollment process. In addition to the printed benefits enrollment guide, Keenan will also maintain a website where employees can obtain this information. There is no cost to the City for either the printed benefits enrollment guide or the benefits website. ■ Keenan will provide the City with an annual utilization report for employee benefits and will assist with developing budgetary estimates for benefits. • Employees will have the option to participate in a medical expense reimbursement plan and a dependent care assistance plan utilizing pre-tax dollars from their flexible benefit plan. Implementation of the City's new Section 125 Flexible Benefit Plan is planned for April 1, 2011. The first plan year will be a short one, April 1 through December 31, 2011. Subsequent plan years will be the same as the calendar year. Council will be provided with an overview of employee benefits prior to the April I implementation of the new plan. FISCAL IMPACT: There is no cost to the City for the Section 125 Flexible Benefit Plan administered through Keenan by American Fidelity. There is no cost to the City for the administration of employee benefits through Keenan & Associates, who will receive commissions based on the standard commission schedules filed with the State of California. American Fidelity will be able to offer City employees voluntary benefit plans for purchase at their own expense. There is no cost to the City for these voluntary benefit plans. Respectfull submitted, Betsy M. Adam City Manager ATTACHMENTS: Attachment A: Section 125 Flexible Benefit Plan Adoption Agreement .attachment B: Resolution No. 2011 - , for adoption of Health Flexible Spending Arrangement ktachment C: Broker of Record Designation M 0 Attachment A Section 125 Flexible Benefit Plan Adoption 0 Agreement SECTION 125 FLEXIBLE BENEFIT PLAN ADOPTION AGREEMENT The undersigned Employer hereby adopts the Section 125 Flexible Benefit Plan for those Employees who shall qualify as Participants hereunder. The Employer hereby selects the following Plan specifications: A. EMPLOYER INFORMATION Name of Employer: City Of Grand Terrace Address: 22795 Barton Rd Grand Terrace, CA 92313-5295 Employer Identification Number: 95-3316135 Nature of Business: Muncipality Name of Plan: City Of Grand Terrace Flexible Benefit Plan Plan Number: 501 B. EFFECTIVE DATE Original effective date of the Plan: May 1,2003 If Amendment to existing plan, effective date of amendment: February 1,2011 C. ELIGIBILITY REQUIREMENTS FOR PARTICIPATION O Eligibility requirements for each component plan under this Section 125 document will be applicable and, if different,will be listed in Item F. Length of Service: First day of the month following employment. Minimum Hours: All employees with 20 for childcare employees; 30 for City Hall employees hours of service or more each week. An hour of service is each hour for which an employee receives, or is entitled to receive, payment for performance of duties for the Employer. Age: Minimum age of none years. D. PLAN YEAR The current plan year will begin on February 1. 2011 and end on December 31, 2011. Each subsequent plan year will begin on anuary I and end on December 31. E. EMPLOYER CONTRIBUTIONS Non-EIective Contributions: The maximum amount available to each Participant for the purchase of elected benefits with non-elective contributions will be: 100%of medical for employee-only. Toward all other levels of coverage, including dental,vision, and voluntary products,the employer will contribute the cost of the single medical coverage plus 18.1%of salary. The Employer may at its sole discretion provide a non-elective contribution to provide benefits for each Participant under the Plan. This amount will be set by the Employer each Plan Year in a uniform and non-discriminatory manner. If this non- elective contribution amount exceeds the cost of benefits elected by the Participant, excess amounts will not be paid to the Participant as taxable cash. Elective Contributions (Salary Reduction): The maximum amount available to each Participant for the purchase of elected benefits through salary reduction will be: 100%of compensation per plan year. Each Participant may authorize the Employer to reduce his or her compensation by the amount needed for the purchase of benefits elected, less the amount of non- elective contributions. An election for salary reduction will be made on the benefit election form. 3 F. AVAILABLE BENEFITS: Each of the following components should be considered a plan that comprises this Plan. 1. Group Medical Insurance--The terms, conditions,and limitations for the Group Medical Insurance will be as set forth in the insurance policy or policies described below: (See Section V of the Plan Document) BlueCross PPO BlueShield HMO Kaiser HMO American Fidelity Assurance Company Accident Only Plan Eligibility Requirements for Participation, if different than item C. 2. Disability Income Insurance--The terms,conditions, and limitations for the Disability Income Insurance will be as set forth in the insurance policy or policies described below: (See Section VI of the Plan Document) NIA Eligibility Requirements for Participation, if different than Item C. 3. Cancer Coverage--The terms,conditions,and limitations for the Cancer Coverage will be as set forth in the insurance policy or policies described below: (See Section V of the Plan Document) American Fidelity Assurance Company C-12 and subsequent policies Eligibility Requirements for Participation, if different than Item C. 4. Dental/Vision Insurance--The terms, conditions, and limitations for the DentalNision Insurance will be as set forth in the insurance policy or policies described below: (See Section V of the Plan Document) Western Dental HMO Safeguard (vision) Eligibilily Requirements for Participation, if different than Item C. 4 5. Group Life Insurance which will be comprised of Group-tern life insurance and Individual term life insurance under Section 79 of the Code. The terns, conditions, and limitations for the Group Life Insurance will be as set forth in the insurance policy or policies described below: (See Section VII of the Plan Document) Individual life coverage under Section 79 is available as a benefit, and the face amount when combined with the group-term life, if any, may not exceed $50,000. NIA Eligibility Requirements for Participation, if different than Item C. 6. Dependent Care Assistance Plan --The terms,conditions, and limitations for the Dependent Care Assistance Plan will be as set forth in Section IX of the Plan Document and described below: Minimum Contribution- $0 per Plan Year Maximum Contribution -$ 5000 per Plan Year 0 Recordkeeper: American Fidelity Assurance Company Eligibility Requirements for Participation, if different than Item C. 7. Medical Expense Reimbursement Plan --The terms, conditions, and limitations for the Medical Expense Reimbursement Plan will be as set forth in Section VIII of the Plan Document and described below: Minimum Coverage-$0 per Plan Year Maximum Coverage -$2500 per Plan Year Recordkeeper: American Fidelity Assurance Company Restrictions: NIA Grace Period: The provisions in Section 8.06 of the Plan to permit a Grace Period with respect to the Medical Expense Reimbursement Plan ARE elected. HEART ACT: The provisions in Section 8.07 of the Plan to permit the Qualified Reservist Distribution of the Heroes Earnings Assistance and Relief Tax Act(HEART) kRE elected. 5 Debit Card: The provisions in Section 8.05 of the Plan to permit the offer of the Debit Card with respect to the Medical Expense Reimbursement Plan ARE elected. Eligibility Requirements for Participation, if different than Item C. S. Health Savin s Accounts — The Plan permits contributions to be made to a Health Savings Account on a pretax basis in accordance with Section X of the Plan and the following provisions: HSA Trustee—NIA Maximum Contribution—As indexed annually by the IRS. Limitation on Eligible Medical Expenses — For purposes of the Medical Reimbursement Plan, Eligible Medical Expenses of a Participant that is eligible for and elects to participate in a Health Savings Account shall be limited to expenses for: NIA Eligibility ity Requirements for Participation, if different than Item C. (a) An Employee must complete a Certification of Health Savings Account Q Eligibility which confirms that the Participant is an eligible individual who is entitled to establish a Health Savings Account in accordance with Code Section 223(c)(1). (b) Eligibility for the Health Savings Account shall begin on the later of(i) first day of the month coinciding with or next following the Employee's commencement of coverage under the High Deductible Health Plan, or(ii)the first day following the end of a Grace Period available to the Employee with respect to the Medical Reimbursement Accounts that are not limited to vision and dental expenses(unless the participant has a $0.00 balance on the last day of the plan year). (c) An Employee's eligibility for the Health Savings Account shall be determined monthly. 6 The Plan shall be construed, enforced, administered, and the validity determined in accordance with the applicable provisions of the Employee Retirement Income Security Act of 1974, (as amended) if applicable, the Internal Revenue Code of 1986 (as amended), and the laws of the State of CA. Should any provision be determined to be void, invalid, or unenforceable by any court of competent jurisdiction, the Plan will continue to operate, and for purposes of the jurisdiction of the court only, will be deemed not to include the provision determined to be void. O This Plan is hereby adopted this day of ,2011. City Of Grand Terrace (Name of Employer) Witness: By: Title: Title: APPENDIX A Related Employers that have adopted this Plan Name(s): THIS DOCUMENT IS NOT COMPLETE WITHOUT SECTIONS I THROUGH XIII PD0710 Created on 01/12/11 8:23 AM r SECTION 125 FLEXIBLE BENEFIT PLAN SECTION I PURPOSE The Employer is establishing this Flexible Benefit Plan in order to make a broader range of benefits available to its Employees and their Beneficiaries. This Plan allows Employees to choose among different types of benefits and select the combination best suited to their individual goals, desires, and needs. These choices include an option to receive certain benefits in lieu of taxable compensation. In establishing this Plan, the Employer desires to attract, reward, and retain highly qualified, competent Employees,and believes this Plan will help achieve that goal. It is the intent of the Employer to establish this Plan in conformity with Section 125 of the Internal Revenue Code of 1986, as amended, and in compliance with applicable rules and regulations issued by the Internal Revenue Service. This Plan will grant to eligible Employees an opportunity to purchase qualified benefits which,when purchased alone by the Employer,would not be taxable. SECTION II DEFINITIONS The following words and phrases appear in this Plan and will have the meaning indicated below unless a different meaning is plainly required by the context: J 2.01 Administrator The Employer unless another has been designated in writing by the Employer as Administrator within the meaning of Section 3(16)of ERISA (if applicable). 2.02 Beneficiary Any person or persons designated by a participating Employee to receive any benefit payable under the Plan on account of the Employee's death. 2.03 Code Internal Revenue Code of 1986,as amended. 2.04 Dependent Any of the following: (a) Tax De endent: A Dependent includes a Participant's spouse and any other person who is a Participant's dependent within the meaning of Code Section 152, provided that, with respect to any plan that provides benefits that are excluded from an Employee's income under Code Section 105, a Participant's dependent (i) is any person within the meaning of Code Section 152, determined without regard to Subsections (b)(l), (b)(2), and (d)(1)(B) thereof, and (ii) includes any child of the Participant to whom Code Section 152(e) applies (such child will be treated as a dependent of both divorced parents). �i (b) Student on a Medically Necessary Leave of Absence: With respect to any plan that is considered a group health plan under Michelle's Law (and not a HIPAA excepted benefit under Code Sections 9831(b), (c) and 9832(c)) and to the extent the Employer is required by Michelle's Law to provide continuation coverage, a Dependent includes a child who qualifies as a Tax Dependent (defined in Section 2.04(a)) because of his or her full-time student status, is enrolled in a group health plan, and is on a medically necessary leave of absence from school. The child will continue to be a Dependent if the medically necessary leave of absence commences while the child is suffering from a serious illness or injury, is medically necessary, and causes the child to lose student status for purposes of the group health plan's benefits coverage. Written physician certification that the child is suffering from a serious illness or injury and that the leave of absence is medically necessary is required at the Administrator's request. The child will no longer be considered a Dependent as of the earliest date that the child is no longer on a medically necessary leave of absence, the date that is one year after the first day of the medically necessary leave of absence, or the date benefits would otherwise terminate under either the group health plan or this Plan. Terms related to Michelle's Law, and not otherwise defined, will have the meaning provided under the Michelle's Law provisions of Code Section 9813. 0 (c) Adult Children: With respect to any plan that provides benefits that are excluded from an Employee's income under Code Section 105, a Dependent includes a child of a Participant who as of the end of the calendar year has not attained age 27. A 'child' for purpose of this Section 2.04(c) means an individual who is a son, daughter, stepson, or stepdaughter of the Participant, a legally adopted individual of the Participant, an individual who is lawfully placed with the Participant for legal adoption by the Participant, or an eligible foster child who is placed with the Participant by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. An adult child described in this Section 2.04(c) is only a Dependent with respect to benefits provided after March 30, 2010 (subject to any other limitations of the Plan). Dependent for purposes of the Dependent Care Reimbursement Plan is defined in Section 9.04(a). 105 Effective Date The effective date of this Plan as shown in Item B of the Adoption Agreement. 2.06 Elective Contribution The amount the Participant authorizes the Employer to reduce compensation for the purchase of benefits elected. 9 2.07 Eligible Employee Employee meeting the eligibility requirements for participation as shown in Item C of the Adoption Agreement. 2.08 Employee Any person employed by the Employer on or after the Effective Date. 2.09 Employer The entity shown in Item A of the Adoption Agreement, and any Related Employers authorized to participate in the Plan with the approval of the Employer. Related Employers who participate in this Plan are listed in Appendix A to the Adoption Agreement. For the purposes of Section l 1.01 and 11.02, only the Employer as shown in Item A of the Adoptio<D Agreement may amend or terminate the Plan. 2.10 Employer Contributions Amounts that have not been actually received by the Participant and are available to the Participant for the purpose of selecting benefits under the Plan. This term includes Non-Elective Contributions and Elective Contributions through salary reduction. 2.11 Entry Date The date that an Employee is eligible to participate in the Plan. 2.12 ERISA The Employee Retirement Income Security Act of 1974, Public Law 93- 406 and all regulations and rulings issued thereunder, as amended (if applicable). 2.13 Fiduciary The named fiduciary shall mean the Employer, the Administrator and other parties designated as such, but only with respect to any specifG duties of each for the Plan as may be set forth in a written agreement. 2.14 Health Savings Account A "health savings account" as defined in Section 223(d) of the Internal Revenue Code of 1986, as amended established by the Participant with the HSA Trustee. 2.15 HSA Trustee The Trustee of the Health Savings Account which is designated in Section F.8 of the Adoption Agreement. 2.16 Highly Compensated Any Employee who at any time during the Plan Year is a "highly compensated employee" as defined in Section 414(q)of the Code. 2.17 High Deductible Health A health plan that meets the statutory requirements for annual deductibles Plan and out-of-pocket expenses set forth in Code section 223(c)(2). 2.18 HIPAA The Health Insurance Portability and Accountability Act of 1996, as amended. 2.19 Insurer Any insurance company that has issued a policy pursuant to the terms of this flan. 2.20 Key Employee :any Participant who is a "key employee" as defined in Section 416(i) of the Code. 10 2.21 Non-Elective A contribution amount made available by the Employer for the Contribution purchase of benefits elected by the Participant. 2.22 Participant An Employee who has qualified for Plan participation as provided in Item C of the Adoption Agreement. 2.23 Plan The Plan referred to in Item A of the Adoption Agreement as may be amended from time to time. 2.24 Plan Year The Plan Year as specified in Item D of the Adoption Agreement. 2.25 Policy An insurance policy issued as a part of this Plan. 2.26 Preventative Care Medical expenses which meet the safe harbor definition of"preventative care" set forth in IRS Notice 2004-23, which includes, but is not limited to, the following: (i) periodic health evaluations, such as annual physicals (and the tests and diagnostic procedures ordered in conjunction with such evaluations); (ii) well-baby and/or well-child care; (iii) immunizations for adults and children; (iv) tobacco cessation and obesity weight-loss programs; and (v) screening devices. However, preventative care does not generally include any service or benefit intended to treat an existing illness, injury or condition. 2.27 Recordkeeper The person designated by the Employer to perform recordkeeping and other ministerial duties with respect to the Medical Expense Reimbursement Plan and/or the Dependent Care Reimbursement Plan. 2.28 Related Employer Any employer that is a member of a related group of organizations with the Employer shown in Item A of the Adoption Agreement, and as specified under Code Section 414(b), (c)or(m). SECTION III ELIGIBILITY, ENROLLMENT,AND PARTICIPATION 3.01 ELIGIBILITY: Each Employee of the Employer who has met the eligibility requirements of Item C of the Adoption Agreement will be eligible to participate in the Plan on the Entry Date specified or the Effective Date of the Plan, whichever is later. Dependent eligibility to receive benefits under any of the plans listed in Item F of the Adoption Agreement will be described in the documents governing those benefit plans. To the extent a Dependent is eligible to receive benefits under a plan listed in Item F, an Eligible Employee may elect coverage under this Plan with respect to such Dependent. Notwithstanding the foregoing, life insurance coverage on the life of a Dependent may not be elected under this Plan. 3.0w ENROLLMENT: An eligible Employee may enroll (or re-enroll) in the Plan by submitting to the Employer,during an enrollment period, an Election Form which specifies his or her benefit elections for the Plan Year and which meets such standards for completeness and accuracy as the Employer may I establish. A Participant's Election Form shall be completed prior to the beginning of the Plan Year, and shall not be effective prior to the date such form is submitted to the Employer. Any Election Form submitted by a Participant in accordance with this Section shall remain in effect until the earlier of the following dates: the date the Participant terminates participation in the Plan; or, the effective date of a subsequently filed Election Form. A Participant's right to elect certain benefit coverage shall be limited hereunder to the extent such rights are limited in the Policy. Furthermore, a Participant will not be entitled to revoke an election after a period of coverage has commenced and to make a new election with respect to the remainder of the period of coverage unless both the revocation and the new election are on account of and consistent with a change in status, or other allowable events, as determined by Section 125 of the Internal Revenuo Code and the regulations thereunder. 3.03 TERMINATION OF PARTICIPATION: A Participant shall continue to participate in the Plan until the earlier of the following dates: (a) The date the Participant terminates employment by death, disability, retirement or other separation from service;or (b) The date the Participant ceases to work for the Employer as an eligible Employee; or (c) The date of termination of the Plan; or (d) The first date a Participant fails to pay required contributions while on a leave of absence. 3.04 SEPARATION FROM SERVICE: The existing elections of an Employee who separates from the employment service of the Employer shall be deemed to be automatically terminated and the Employee will not receive benefits for the remaining portion of the Plan Year. 0 3.05 QUALIFYING LEAVE UNDER FAMILY LEAVE ACT: Notwithstanding any provision to the contrary in this Plan, if a Participant goes on a qualifying unpaid leave under the Family and Medical Leave Act of 1993 (FMLA), to the extent required by the FMLA, the Employer will continue to maintain the Participant's existing coverage under the Plan with respect to benefits under Section V and Section Vill of the Plan on the same terms and conditions as though he were still an active Employee. If the Employee opts to continue his coverage, the Employee may pay his Elective Contribution with after-tax dollars while on leave (or pre-tax dollars to the extent he receives compensation during the leave), or the Employee may be given the option to pre-pay all or a portion of his Elective Contribution for the expected duration of the leave on a pre-tax salary reduction basis out of his pre-leave compensation (including unused sick days or vacation) by making a special election to that effect prior to the date such compensation would normally be made available to him (provided, however, that pre- tax dollars may not be utilized to fund coverage during the next plan year), or via other arrangements agreed upon between the Employee and the Administrator (e.g., the Administrator may fund coverage during the leave and withhold amounts upon the Employee's return). Upon return from such leave, the Employee will be permitted to reenter the Plan on the same basis the Employee was participating in the Plan prior to his leave,or as otherwise required by the FMLA. SECTION IV CONTRIBUTIONS 12 4.01 EMPLOYER CONTRIBUTIONS: The Employer may pay the costs of the benefits elected under the Plan with funds from the sources indicated in Item E of the Adoption Agreement. The Employer Contribution may be made up of Non-Elective Contributions and/or Elective Contributions authorized by each Participant on a salary reduction basis. 4.02 IRREVOCABILITY OF ELECTIONS: A Participant may file a written election form with the Administrator before the end of the current Plan Year revising the rate of his contributions or discontinuing such contributions effective as of the first day of the next following Plan Year. The Participant's Elective Contributions will automatically terminate as of the date his employment O terminates. Except as provided in this Section 4.02 and Section 4.03, a Participant's election under the Plan is irrevocable for the duration of the plan year to which it relates. The exceptions to the irrevocability requirement which would permit a mid-year election change in benefits and the salary reduction amount elected are set out in the Treasury regulations promulgated under Code Section 125, which include the following: (a) Change in Status. A Participant may change or revoke his election under the Plan upon the occurrence of a valid change in status, but only if such change or termination is made on account of, and is consistent with, the change in status in accordance with the Treasury regulations promulgated under Section 125. The Employer, in its sole discretion as Administrator, shall determine whether a requested change is on account of and consistent with a change in status,as follows: (1) Change in Employee's legal marital status, including marriage, divorce, death of spouse, legal separation, and annulment; (2) Change in number of Dependents, including birth,adoption, placement for adoption, and death; (3) Change in employment status, including any employment status change affecting benefit eligibility of the Employee, spouse or Dependent, such as termination or commencement of employment, change in hours, strike or lockout, a commencement or return from an unpaid leave of absence, and a change in work site. If the eligibility for either the cafeteria Plan or any underlying benefit plans of the Employer of the Employee, spouse or Dependent relies on the employment status of that individual, and there is a change in that individual's employment status resulting in gaining or losing eligibility under the Plan, this constitutes a valid change in status. This category only applies if benefit eligibility is lost or gained as a result of the event. If an Employee terminates and is rehired within 30 days, the Employee is required to step back into his previous election. If the Employee terminates and is rehired after 30 days, the Employee may either step back into the previous election or make a new election; (4) Dependent satisfies, or ceases to satisfy, Dependent eligibility requirements due to attainment of age,gain or loss of student status, marriage or any similar circumstances; and (5) Residence change of Employee, spouse or Dependent, affecting the Employee's eligibility for coverage. (b) Special Enrollment Rights. If a Participant or his or her spouse or Dependent is entitled to special enrollment rights under a group health plan (other than an excepted benefit), as required by H1PAA under Code Section 9801(f) or Section 2701(f) of the Public Health Service Act, then a Participant may revoke a prior election for group health plan coverage and make a new election, provided that the election change corresponds with such H1PAA special enrollment right. As required by HIPAA, a special enrollment right will arise in the following circumstances: (i) a Participant or his or her spouse or Dependent declined to enroll in group health plan coverage because he or she had coverage, and eligibility for such coverage is subsequently lost because the coverage was provided under COBRA and the COBRA coverage was exhausted. or the coverage was non-COBRA 13 coverage and the coverage terminated due to loss of eligibility for coverage or the employer contributions For the coverage were terminated; (ii) a new Dependent is acquired as a result of marriage, birth, adoption, or placement for adoption; (iii) the Participant's or his or her spouse's or Dependent's coverage under a Medicaid plan or under a children's health insurance program(CHIP) is terminated as a result of loss of eligibility for such coverage and the Participant requests coverage under the group health plan not later than 60 days after the date of termination of such coverage; or (iv) the Participant, his or her spouse or Dependent becomes eligible for a state premium assistance subsidy from a Medicaid plan or through a state children's insurance program with respect to coverage under the group health plan and the Participant requests coverage under the group health plan not later than 60 days after the date the Participant, his or her spouse or Dependent is determined to be eligible for such assistance. An election change under(iii)or(iv)of this provisioO must be requested within 60 days after the termination of Medicaid or state health plan coverage or the determination of eligibility for a state premium assistance subsidy, as applicable. Special enrollment rights under the health insurance plan will be determined by the terms of the health insurance plan. (c) Certain JudgMents. Decrees or Orders. If a judgment,decree or order resulting from a divorce, legal separation, annulment or change in legal custody (including a qualified medical child support order [QMCSO]) requires accident or health coverage for a Participant's child or for a foster child who is a dependent of the Participant, the Participant may have a mid-year election change to add or drop coverage consistent with the Order. (d) Entitlement to Medicare or Medicaid. If a Participant, Participant's spouse or Participant's Dependent who is enrolled in an accident or health plan of the Employer becomes entitled to Medicare or Medicaid (other than coverage consisting solely of benefits under Section 1928 of the Social Security Act providing for pediatric vaccines), the Participant may cancel or reduce health coverage under the Employer's Plan. Loss of Medicare or Medicaid entitlement would allow the Participant to add health coverage under the Employer's Plan. (e) Family Medical_Leave Act. If an Employee is taking leave under the rules of the Family Medical Leave Act,the Employee may revoke previous elections and re-elect benefits upon return to work. (f) COBRAA Qualifying Event. If an Employee has a COBRA qualifying event (a reduction in hours of the Employee, or a Dependent ceases eligibility), the Employee may increase his pre-tax contributions for coverage under the Employer's Plan if a COBRA event occurs with respect to the Employee, the Employee's spouse or Dependent. The COBRA rule does not apply to COBRA coverage under another Employer's Plan. (g) Changes in Eligibility for Adult Children. To the extent the Employer amends a plan listed in Item F of the Adoption Agreement that provides benefits that are excluded from an Employee's income under Code Section 105 to provide that Adult Children (as defined in Section 2.04(c)) are eligible to receive benefits under the plan, an Eligible Employee may make or change an election under this Plan to add coverage for the Adult Child and to make any corresponding change to the Eligible Employee's coverage that is consistent with adding coverage for the Adult Child. (h) Notwithstanding anything to the contrary in this Section 4.02, the change in election rules in this Section 4.02 do not apply to the Medical Expense Reimbursement Plan, or may not be modified with respect to the !Medical Expense Reimbursement Plan if the Plan is being administered by a Recordkeeper other than the Employer, unless the Employer and the Recordkeeper otherwise agree in writing. 14 4.03 OTHER EXCEPTIONS TO IRREVOCABILITY OF ELECTIONS. Other exceptions to the irrevocability of election requirement permit mid-year election changes and apply to all qualified benefits except for Medical Expense Reimbursement Plans,as follows: (a) Change in Cost. If the cost of a benefit package option under the Plan significantly increases during the plan year, Participants may (i) make a corresponding increase in their salary reduction amount, (ii) revoke their elections and make a prospective election under another benefit option offering similar coverage, or(iii) revoke election completely if no similar coverage is available, including in spouse or dependent's plan. if the cost significantly decreases, employees may elect coverage even if they had not previously participated and may drop their previous election for a similar coverage option in order to elect the benefit package option that has decreased in cost during the year. If the increased or decreased cost of a benefit package option under the Plan is insignificant, the participant's salary reduction amount shall be automatically adjusted. (b) Significant curtailment of coverage (i) With no loss of coverage. If the coverage under a benefit package option is significantly curtailed or ceases during the Plan Year, affected Participants may revoke their elections for the curtailed coverage and make a new prospective election for coverage under another benefit package option providing similar coverage. (ii) With loss of coverage. If there is a significant curtailment of coverage with loss of coverage, affected Participants may revoke election for curtailed coverage and make a new prospective election for coverage under another benefit package option providing similar coverage, or drop coverage if no similar benefit package option is available. (c) Addition or Significant Improvement of Benefit Package Option. If during the Plan Year a new benefit package option is added or significantly improved, eligible employees, whether currently participating or not, may revoke their existing election and elect the newly added or newly improved option. (d) Change in Coverage of a Spouse or Dependent Under Another Employer's Plan. if there is a change in coverage of a spouse, former spouse, or Dependent under another employer's plan, a Participant may make a prospective election change that is on account of and corresponds with a change made under the plan of the spouse or Dependent. This rule applies if(1) mandatory changes in coverage are initiated by either the insurer of spouse's plan or by the spouse's employer, or (2) optional changes are initiated by the spouse's employer or by the spouse through open enrollment. (e) Loss of coverage under other group health coverage. If during the Plan Year coverage is lost under any group health coverage sponsored by a governmental or educational institution, a Participant may prospectively change his or her election to add group health coverage for the affected Participant or his or her spouse or dependent. 4.04 CASH BENEFIT: Available amounts not used for the purchase of benefits under this Plan may be considered a cash benefit under the Plan payable to the Participant as taxable income to the extent indicated in Item E of the Adoption Agreement. 4.05 PAYMENT FROM EMPLOYER'S GENERAL .ASSETS: Payment of benefits under this Plan shall be made by the Employer from Elective Contributions which shall be held as a part of its general assets. 15 4.06 EMPLOYER MAY HOLD ELECTIVE CONTRIBUTIONS: Pending payment of benefits in accordance with the terms of this Plan, Elective Contributions may be retained by the Employer in a separate account or, if elected by the Employer and as permitted or required by regulations of the Internal Revenue Service, Department of Labor or other governmental agency,such amounts of Elective Contributions may be held in a trust pending payment. 4.07 MAXIMUM EMPLOYER CONTRIBUTIONS: With respect to each Participant, the maximum amount made available to pay benefits for any Plan Year shall not exceed the Employer's Contribution specified in the Adoption Agreement and as provided in this Plan. SECTION V GROUP MEDICAL INSURANCE BENEFIT PLAN 5.01 PURPOSE: These benefits provide the group medical insurance benefits to Participants. 5.02 ELIGIBILITY: Eligibility will be as required in Items F(1), F(3),and F(4)of the Adoption Agreement. 5.03 DESCRIPTION OF BENEFITS: The benefits available under this Plan will be as defined in Items F(1), F(3), and F(4)of the Adoption Agreement. 5.04 TERMS, CONDITIONS AND LIMITATIONS: The terms, conditions and limitations of the benefits offered shall be as specifically described in the Policy identified in the Adoption Agreement. 5.05 COBRA: To the extent required by Section 4980B of the Code and Sections 601 through 607 1� ERISA, Participants and Dependents shall be entitled to continued participation in this Group Medical Insurance Benefit Plan by contributing monthly (from their personal assets previously subject to taxation) 102% of the amount of the premium for the desired benefit during the period that such individual is entitled to elect continuation coverage, provided, however, in the event the continuation period is extended to 29 months due to disability, the premium to be paid for continuation coverage for the 11 month extension period shall be 150%of the applicable premium. 5.06 SECTION 105 AND 106 PLAN: It is the intention of the Employer that these benefits shall be eligible for exclusion from the gross income of the Participants covered by this benefit plan, as provided in Code Sections 105 and 106, and all provisions of this benefit plan shall be construed in a manner consistent with that intention. It is also the intention of the Employer to comply with the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 as outlined in the policies identified in the Adoption Agreement. 5.07 CONTRIBUTIONS: Contributions for these benefits will be provided by the Employer on behalf of a Participant as provided for in Item E of the Adoption Agreement. 5.08 UNIFORMED SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT: Notwithstanding anything to the contrary herein, the Group '.Medical Insurance Benefit Plan shall comply with the applicable provisions of the Uniformed Services Employment and Reemployment Rights Act of 1994 (Public Law 103-353). SECTION VI 16 DISABILITY INCOME BENEFIT PLAN 6.01 PURPOSE: This benefit provides disability insurance designated to provide income to Participants during periods of absence from employment because of disability. 6.02 ELIGIBILITY: Eligibility will be as required in Item F(2)of the Adoption Agreement. 6.03 DESCRIPTION OF BENEFITS: The benefits available under this Plan will be as defined in Item F(2) of the Adoption Agreement. 6.04 TERMS, CONDITIONS AND LIMITATIONS: The terms, conditions and limitations of the Disability Income Benefits offered shall be as specifically described in the Policy identified in the Adoption Agreement. 6.05 SECTION 104 AND 106 PLAN: It is the intention of the Employer that the premiums paid for these benefits shall be eligible for exclusion from the gross income of the Participants covered by this benefit plan, as provided in Code Sections 104 and 106, and all provisions of this benefit plan shall be construed in a manner consistent with that intention. 6.06 CONTRIBUTIONS: Contributions for this benefit will be provided by the Employer on behalf of a Participant as provided for in Item E of the Adoption Agreement. SECTION VII GROUP AND INDIVIDUAL LIFE INSURANCE PLAN 7.01 PURPOSE: This benefit provides group life insurance benefits to Participants and may provide certain individual policies as provided for in Item F(5)of the Adoption Agreement. 7.02 ELIGIBILITY: Eligibility will be as required in Item F(5)of the Adoption Agreement. 7.03 DESCRIPTION OF BENEFITS: The benefits available under this Plan will be as defined in Item F(5) of the Adoption Agreement. 7.04 TERMS, CONDITIONS, AND LIMITATIONS: The terms, conditions, and limitations of the group life insurance are specifically described in the Policy identified in the Adoption Agreement. 7.05 SECTION 79 PLAN: It is the intention of the Employer that the premiums paid for the benefits described in Item F(5) of the Adoption Agreement shall be eligible for exclusion from the gross income of the Participants covered by this benefit plan to the extent provided in Code Section 79, and all provisions of this benefit plan shall be construed in a manner consistent with that intention. 7.06 CONTRIBUTIONS: Contributions for this benefit will be provided by the Employer on behalf of a Participant as provided for in Item E of the Adoption Agreement. Any individual policies purchased by Lhe Employer for the Participant will be owned by the Participant. SECTION VIII 17 MEDICAL EXPENSE REIMBURSEMENT PLAN 8.01 PURPOSE: The Medical Expense Reimbursement Plan is designed to provide for reimbursement of Eligible Medical Expenses (as defined in Section 8.04)that are not reimbursed under an insurance plan, through damages, or from any other source. It is the intention of the Employer that amounts allocated for this benefit shall be eligible for exclusion from gross income, as provided in Code Sections 105 and 106, for Participants who elect this benefit and all provisions of this Section VIII shall be construed in a manner consistent with that intention. 8.02 ELIGIBILITY: The eligibility provisions are set forth in Item F(7)of the Adoption Agreement. 0 8.03 TERMS, CONDITIONS,AND LIMITATIONS: (a) Accounts. The Reimbursement Recordkeeper shall establish a recordkeeping account for each Participant. The Reimbursement Recordkeeper shall maintain a record of each account on an on- going basis, increasing the balances as contributions are credited during the year and decreasing the balances as Eligible Medical Expenses are reimbursed. No interest shall be payable on amounts recorded in any Participant's account. (b) Maximum benefit. The maximum amount of reimbursement for each Participant shall be limited to the amount of the Participant's Elective Contribution allocated to the program during the Plan Year, not to exceed the maximum amount set forth in Item F(7) of the Adoption Agreement. (c) Claim Procedure. In order to be reimbursed for any medical expenses incurred during the Pla Year, the Participant shall complete the form(s) provided for such purpose by the Reimbursemer m �D Recordkeeper. The Participant shall submit the completed form to the Reimbursement Recordkeeper with an original bill or other proof of the expense acceptable to the Reimbursement Recordkeeper. No reimbursement shall be made on the basis of an incomplete form or inadequate evidence of expense as determined by the Reimbursement Recordkeeper. Forms for reimbursement of Eligible Medical Expenses must be submitted no later than the ninetieth (90th) day following the last day of the Plan Year during which the Eligible Medical Expenses were incurred. Reimbursement payments shall only be made to the Participant, or the Participant's legal representative in the event of incapacity or death of the Participant. Forms for reimbursement shall be reviewed in accordance with the claims procedure set forth in Section XII. (d) Funding. The funding of the Medical. Reimbursement Plan shall be through contributions by the Employer from its general assets to the extent of Elective Contributions directed by Participants. Such contributions shall be made by the Employer when benefit payments and account administrative expenses become due and payable under this Medical Expense Reimbursement Plan. (e) Forfeiture. Any amounts remaining to the credit of the Participant at the end of the Plan Year and not used for Eligible Medical Expenses incurred during the Participant's participation during the Plan Year shall be forfeited and shall remain assets of the Plan. With respect to a Participant who terminates employment with the Employer and who has not elected to continue coverage under this Plan pursuant to COBRA rights referenced under Section 8.03(f) herein, such Participant shall not be entitled to reimbursement for Eligible Medical Expenses incurred after his termination date regardless if such Participant has any amounts of Employer Contributions remaining to his credit. Upon the death of any Participant who has any amounts of Employer Contributions remaining to his credit, a dependent of the Participant may elect to continue to claim reimbursement for Eligible 18 Medical Expenses in the same manner as the Participant could have for the balance of the Plan Year. (f) COBRA. To the extent required by Section 4980B of the Code and Sections 601 through 607 of ERISA{`COBRA"), a Participant and a Participant's Dependents shall be entitled to elect continued participation in this Medical Expense Reimbursement Plan only through the end of the plan year in which the qualifying event occurs, by contributing monthly (from their personal assets previously subject to taxation) to the Employer/Administrator, 102% of the amount of desired reimbursement through the end of the Plan Year in which the qualifying event occurs. Specifically, such individuals will be eligible for COBRA continuation coverage only if they have a positive Medical Expense Reimbursement Account balance on the date of the qualifying event. Participants who have a deficit balance in their Medical Expense Reimbursement Account on the date of their qualifying event shall not be entitled to elect COBRA coverage. In lieu of COBRA, Participants may continue their coverage through the end of the current Plan Year by paying those premiums out of their last paycheck on a pre-tax basis. (g) Nondiscrimination. Benefits provided under this Medical Expense Reimbursement Plan shall not be provided in a manner that discriminates in favor of Employees or Dependents who are highly compensated individuals, as provided under Section 105(h) of the Code and regulations promulgated thereunder. (h) Uniform Coverage Rule. Notwithstanding that a Participant has not had withheld and credited to his account all of his contributions elected with respect to a particular Plan Year, the entire aggregate annual amount elected with respect to this Medical Expense Reimbursement Plan, shall be available at all times during such Plan Year to reimburse the participant for Eligible Medical Expenses with respect to this Medical Expense Reimbursement Plan. To the extent contributions with respect to this Medical Expense Reimbursement Plan are insufficient to pay such Eligible Medical Expenses, it shall be the Employer's obligation to provide adequate funds to cover any short fall for such Eligible Medical Expenses for a Participant; provided subsequent contributions with respect to this Medical Expense Reimbursement Plan by the Participant shall be available to reimburse the Employer for funds advanced to cover a previous short fall. (i) Uniformed Services Employment and Reemployment Rights Act. Notwithstanding anything to the contrary herein, this Medical Expense Reimbursement Plan shall comply with the applicable provisions of the Uniformed Services Employment and Reemployment Rights Act of 1994 (Public Law 103-353). (j) Proration of Limit. In the event that the Employer has purchased a uniform coverage risk policy from the Recordkeeper, then the Maximum Coverage amount specified in Section F.7 of the Adoption Agreement shall be pro rated with respect to (i) an Employee who becomes a Participant and enters the Plan during the Plan Year, and (ii) short plan years initiated by the Employer. Such Maximum Coverage amount will be pro rated by dividing the annual Maximum Coverage amount by 12, and multiplying the quotient by the number of remaining months in the Plan Year for the new Participant or the number of months in the short Plan Year,as applicable. (k) Continuation Coverage for Certain Dependent Children. In the event that benefits under the Medical Expense Reimbursement Plan does not qualify for the exception from the portability rules )f HIPAA, then, etTective for Plan Years beginning on or after October 9, 2009, notwithstanding the foregoing provisions, coverage for a Dependent child who is enrolled in the Medical Expense 19 Reimbursement Plan as a student at a post-secondary educational institution will not terminate due to a medically necessary leave of absence before a date that is the earlier of: • the date that is one year after the first day of the medically necessary leave of absence; or • the date on which such coverage would otherwise terminate under the terms of the Plan. For purposes of this paragraph,"medically necessary leave of absence" means a leave of absence of the child from a post-secondary educational institution, or any other change in enrollment of the child at the institution, that: (i) commences while the child is suffering from a serious illness or injury; (ii) is medically necessary; and (iii) causes the child to lose student status for purposes of coverage under the terms of the Plan. A written certification must be provided by a treatin physician of the dependent child to the Plan in order for the continuation coverage requirement to apply. The physician's certification must state that the child is suffering from a serious illness or injury and that the leave of absence(or other change in enrollment) is medically necessary. 8.04 ELIGIBLE MEDICAL EXPENSES: (a) Eligible Medical Expense Defined. The phrase 'Eligible Medical Expense' means any expense incurred by a Participant or any of his Dependents(subject to the restrictions in Sections 8.04(b)and (c)) during a Plan Year that(i) qualifies as an expense incurred by the Participant or Dependents for medical care as defined in Code Section 213(d) and meets the requirements outlined in Code Section 125, (ii) is excluded from gross income of the Participant under Code Section 105(b), and (iii) has not been and will not be paid or reimbursed by any other insurance plan, through damages, or from any other source. 0 (b) Expenses Incurred After Commencement of Participation. Only medical care expenses incurred by a Participant or the Participant's Dependent(s) on or after the date such Participant commenced participation in the Medical Expense Reimbursement Plan shall constitute an Eligible Medical Expense. (c) Eligible Expenses Incurred by De endents. For purposes of this Section, Eligible Medical Expenses incurred by Dependents defined in Section 2.04(c) are eligible for reimbursement if incurred after March 30,2010; Eligible Medical Expenses incurred by Dependents defined in Sections 2.04(a) and (b) are eligible for reimbursement if incurred either before or after March 30, 2010 (subject to the restrictions of Section 8.04(b)). (d) Health Savings Accounts. If the Employer has elected in Item F.8 of the Adoption Agreement to allow Eligible Employees to contribute to Health Savings Accounts under the Plan, then for a Participant who is eligible for and elects to contribute to a Health Savings Accounts, Eligible Medical Expenses shall be limited as set forth in Item F.8 of the Adoption Agreement. 8.05 l`SE OF DEBIT CARD: In the event that the Employer elects to allow the use of debit cards ("Debit Cards") for reimbursement of Eligible Medical Expenses under the Medical Expense Reimbursement Plan, the following provisions shall apply: (a) Substantiation. The following procedures shall be applied for purposes of substantiating claimed I ligible Medical Expenses after the use of a Debit Card to pay the claimed Eligible Medical I xpense: =�l (i) If the dollar amount of the transaction at a health care provider equals the dollar amount of the co-payment for that service under the Employer's major medical plan of the specific employee-cardholder, the charge is fully substantiated without the need for submission of a receipt or further review. (ii) If the merchant, service provider, or other independent third-parry (e.g., pharmacy benefit manager), at the time and point of sale, provides information to verify to the Recordkeeper(including electronically by e-mail,the internet, intranet, or telephone)that the charge is for a medical expense, the charge is fully substantiated without the need for submission of a receipt or further review. (b) Status of Charges. All charges to a Debit Card, other than co-payments and real-time substantiation as described in Subsection (a) above, are treated as conditional pending confirmation of the charge, and additional third-party information, such as merchant or service provider receipts, describing the service or product, the date of the service or sale, and the amount, must be submitted for review and substantiation. (c) Correction Procedures for Immoaer Payments. In the event that a claim has been reimbursed and is subsequently identified as not qualifying for reimbursement, one or all of the following procedures shall apply: (i) First, upon the Recordkeeper's identification of the improper payment, the Eligible Employee will be required to pay back to the Plan an amount equal to the improper payment. (ii) Second, where the Eligible Employee does not pay back to the Plan the amount of the improper payment, the Employer will have the amount of the improper payment withheld from the Eligible Employee's wages or other compensation to the extent consistent with applicable law. (iii) Third, if the improper payment still remains outstanding, the Plan may utilize a claim substitution or offset approach to resolve improper claims payments. (iv) If the above correction efforts prove unsuccessful, or are otherwise unavailable, the Eligible Employee will remain indebted to the Employer for the amount of the improper payment. In that event and consistent with its business practices, the Employer may treat the payment as it would any other business indebtedness. (v) In addition to the above, the Employer and the Plan may take other actions they may deem necessary, in their sole discretion, to ensure that further violations of the terms of the Debit Card do not occur, including, but not limited to, denial of access to the Debit Card until the indebtedness is repaid by the Eligible Employee. (d) Intent to Comply with Rev. Rul. 200343. It is the Employer's intent that any use of Debit Cards to pay Eligible Medical Expenses shall comply with the guidelines for use of such cards set forth in Rev. Rul. 2003-43, and this Section 8.05 shall be construed and interpreted in a manner necessary to comply with such guidelines. 8.06 GRACE PERIOD: If the Employer elects in Section F.7 of the Adoption Agreement to permit a Grace Period with respect to the Medical Reimbursement Plan. the provisions of this Section 8.06 shall apply. Notwithstanding anything to the contrary herein and in accordance with Internal Revenue Service 21 Notice 200542,a Participant who has unused contributions relating to the Medical Reimbursement Plan from the immediately preceding Plan Year, and who incurs Eligible Medical Expenses for such qualified benefit during the Grace Period, may be paid or reimbursed for those Eligible Medical Expenses from the unused contributions as if the expenses had been incurred in the immediately preceding Plan Year. For purposes of this Section, `Grace Period' shall mean the period extending to the 15`h day of the third calendar month after the end of the immediately preceding Plan Year to which it relates. Eligible Medical Expenses incurred during the Grace Period shall be reimbursed first from unused contributions allocated to the Medical Reimbursement Plan for the prior Plan Year, and then from unused contributions for the current Plan Year, if participant is enrolled in current Plan Year. 8.07 QUALIFIED RESERVIST DISTRIBUTIONS: Notwithstanding anything in the Plan to the 0 contrary,an individual who, by reason of being a member of a reserve component (as defined in 37 U.S.C. § 101), is ordered or called to active duty for a period in excess of 179 days or for an indefinite period may elect to receive a distribution of all or a portion of the unused Elective Contributions in his or her Account relating to the Medical Expense Reimbursement Plan if the distribution is made during the period beginning on the date of such order or call and ending on the last date that reimbursements could otherwise be made under the Plan for the Plan Year that includes the date of such order or call. If the distribution is for the entire amount of unused Elective Contributions available in the Medical Expense Reimbursement Plan,then no additional reimbursement requests will be processed for the remainder of the Plan Year. SECTION IX DEPENDENT CARE REIMBURSEMENT PLAN 9.01 PURPOSE: The Dependent Care Reimbursement Plan is designed to provide for reimbursement of certain employment-related dependent care expenses of the Participant. It is the intention of the Employer that amounts allocated for this benefit shall be eligible for exclusion from gross income, as provided in Code Section 129, for Participants who elect this benefit, and all provisions of this Section IX shall be construed in a manner consistent with that intention. 9.02 ELIGIBILITY: The eligibility provisions are set forth in Item F(6)of the Adoption Agreement. 9.03 TERMS CONDITIONS,AND LIMITATIONS: (a) Accounts. The Reimbursement Recordkeeper shall establish a recordkeeping account for each Participant. The Reimbursement Recordkeeper shall maintain a record of each account on an on- going basis, increasing the balances as contributions are credited during the year and decreasing the balances as Eligible Dependent Care Expenses are reimbursed. No interest shall be payable on amounts recorded in any Participant's account. (b) Maximum Benefit. The maximum amount of reimbursement for each Participant shall be limited to the amount of the Participant's allocation to the program during the Plan Year not to exceed the maximum amount set forth in Item F(6)of the adoption agreement. (c) For purpose of this Section iX, the phrase "earned income" shall mean wages, salaries, tips and other employee compensation, but only if such amounts are includible in gross income for the taxable year. A Participant's spouse who is physically or mentally incapable of self-care as described in Section 9.04(a)(ii) or a spouse who is a full-time student within the meaning of Code Section 21(e)(7) shall be deemed to have earned income for each month in which such spouse is so 22 disabled (or a full-time student). The amount of such deemed earned income shall be $250 per month in the case of one Dependent and$500 per month in the case of two or more Dependents. Claim Procedure. In order to be reimbursed for any dependent care expenses incurred during the Plan Year, the Participant shall complete the form(s) provided for such purpose by the Reimbursement Recordkeeper. The Participant shall submit the completed form to the Reimbursement Recordkeeper with an original bill or other proof of the expense from an independent third party acceptable to the Reimbursement Recordkeeper. No reimbursement shall be made on the basis of an incomplete form or inadequate evidence of the expense as determined by the Reimbursement Recordkeeper. Claims for reimbursement of Eligible Dependent Care Expenses must be submitted O no later than the ninetieth (90th) day following the last day of the Plan Year during which the Eligible Dependent Care Expenses were incurred. Reimbursement payments shall only be made to the Participant, or the Participant's legal representative in the event of the incapacity or death of the Participant. Forms for reimbursement shall be reviewed in accordance with the claims procedure set forth in Section XI1. (e) Funding. The funding of the Dependent Care Reimbursement Plan shall be through contributions by the Employer from its general assets to the extent of Elective Contributions directed by Participants. Such contributions shall be made by the Employer when benefit payments and account administration expenses become due and payable under this Dependent Care Expense Reimbursement Plan. (f) Forfeiture. Any amounts remaining to the credit of the Participant at the end of the Plan Year and not used for Eligible Dependent Care Expenses incurred during the Plan Year shall be forfeited and remain assets of the Plan. (g) Nondiscrimination. Benefits provided under this Dependent Care Reimbursement Plan shall not be provided in a manner that discriminates in favor of Highly Compensated Employees (as defined in Code Section 414(q)) or their dependents, as provided in Code Section 129. In addition, no more than 25 percent of the aggregate Eligible Dependent Care Expenses shall be reimbursed during a Plan Year to five percent owners,as provided in Code Section 129. 9.04 DEFINITIONS: (a) "Dependent" (for purposes of this Section IX) means any individual who is: (i) a Participant's qualifying child(as defined in Code Section 152 (c))who has not attained the age of 13; or (ii) a dependent(qualifying child or qualifying relative, as defined in Code Section 152 (c) and(d), respectively)or the spouse of a Participant who is physically or mentally incapable of self-care, and who has the same principal place of abode as the taxpayer for .note than half of the taxable year. For purposes of this Dependent Care Reimbursement Plan, an individual shall be considered physically or mentally incapable of self-care if,as a result of a physical or mental defect. the individual is incapable of caring for his or her hygienic or nutritional needs, or requires full-time attention of another person for his or her own safety or the safety of others. (b) "Dependent Care Center" (for purposes of this Section IX) shall be a facility which: 13 (i) provides care for more than six individuals (other than individuals who reside at the facility); (ii) receives a fee, payment, or grant for providing services for any of the individuals (regardless of whether such facility is operated for profit); and (iii) satisfies all applicable laws and regulations of a state or unit of local government. (c) "Eligible De endent Care Ex enses" (For purposes of this Section IX) shall mean expenses incurred by a Participant which are: (i) incurred for the care of a Dependent of the Participant or for related household services;0 (ii) paid or payable to a Dependent Care Service Provider;and (iii) incurred to enable the Participant to be gainfully employed for any period for which there are one or more Dependents with respect to the Participant. "Eligible Dependent Care Expenses" shall not include expenses incurred for services outside the Participant's household for the care of a Dependent unless such Dependent is (i) a qualifying child (as defined in Code Section 152 (c)) under the age of 13, or (ii) a dependent (qualifying child or qualifying relative, as defined in Code Section 152 (c) and (d), respectively)), who is physically or mentally incapable of self-care, and who has the same principal place of abode as the Participant for more than half of the taxable year, or (iii) the spouse of a Participant who is physically or mentally incapable of self-care, and who has the same principal place of abode as the Participant for more than half of the taxable year. Eligible Dependent Care Expenses shall be deemed to be incurred at the time the services to which the expenses relate are rendered. (d) "Dependent Care Service Provider" (for purposes of this Section IX) means: O (i) a Dependent Care Center, or (ii) a person who provides care or other services described in Section 9.04(b) and who is not a related individual described in Section 129(c)of the Code. SECTION X HEALTH SAVINGS ACCOUNTS 10.01 PURPOSE: If elected by the Employer in Section F.8 of the Adoption Agreement, the Plan will permit pre-tax contributions to the Health Savings Account, and the provisions of this Article X shall apply. 10.02 BENEFITS: A Participant can elect benefits under the Health Savings Accounts portion of this Plan by electing to pay his or her Health Savings Account contributions on a pre-tax salary reduction basis. In addition, the Employer may make contributions to the Health Savings Account for the benefit of the Participant. 10.03 TERMS, CONDITIONS AND LIMITATION: (a) Maximum Benefit. The maximum annual contributions that may be made to a Participant's Health Savings Account under this Plan is set forth in Section F.8 of the Adoption Agreement. (b) Mid-Year Election Changes, Notwithstanding any to the contrary herein, a Participant election with respect to contributions for the Health Savings Account shall be revocable during the duration of the 24 Plan Year to which the election relates. Consequently, a Participant may change his or her election with respect to contributions for the Health Savings Account at any time. 10.04 RESTRICTIONS ON MEDICAL REIMBURSEMENT PLAN: If the Employer has elected in Section 1:.8 of the Adoption Agreement both Health Savings Accounts under this Plan and the Medical Expense Reimbursement Plan, then the Eligible Medical Expenses that may be reimbursed under the Medical Reimbursement Plan for Participants who are eligible for and elect to participate in Health Savings Accounts shall be limited as set forth in Section F.8 of the Adoption Agreement. 10.05 NO ESTABLISHMENT OF ERISA PLAN: It is the intent of the Employer that the establishment of OHealth Savings Accounts are completely voluntary on the part of Participants, and that, in accordance with Department of Labor Field Assistance Bulletin 2004-1, the Health Savings Accounts are not "employee welfare benefit plans" for purposes of Title I of ERISA. SECTION XI AMENDMENT AND TERMINATION 11.01 AMENDMENT: The Employer shall have the right at any time, and from time to time, to amend, in whole or in part,any or all of the provisions of this Plan, provided that no such amendment shall change the terms and conditions of payment of any benefits to which Participants and covered dependents otherwise have become entitled to under the provisions of the Plan, unless such amendment is made to O comply with federal or local laws or regulations. The Employer also shall have the right to make any amendment retroactively which is necessary to bring the Plan into conformity with the Code. In addition, the Employer may amend any provisions or any supplements to the Plan and may merge or combine supplements or add additional supplements to the Plan, or separate existing supplements into an additional number of supplements. 11.02 TERMINATION: The Employer shall have the right at any time to terminate this Plan, provided that such termination shall not eliminate any obligations of the Employer which therefore have arisen under the Plan. SECTION XII ADMINISTRATION 12.01 NAMED FIDUCIARIES: The Administrator shall be the fiduciary of the Plan. 12.02 APPOINTMENT OF RECORDKEEPER: The Employer may appoint a Reimbursement Recordkeeper which shall have the power and responsibility of performing recordkeeping and other ministerial duties arising under the Medical Expense Reimbursement Plan and the Dependent Care Reimbursement Plan provisions of this Plan. The Reimbursement Recordkeeper shall serve at the pleasure of, and may be removed by, the Employer without cause. The Recordkeeper shall receive reasonable compensation for its services as shall be agreed upon from time to time between the Administrator and the Recordkeeper. 12.03 POWERS AND RESPO SIBIL[TIES OF :ADMINISTRATOR: 25 (a) General. The Administrator shall be vested with all powers and authority necessary in order to amend and administer the Plan,and is authorized to make such rules and regulations as it may deem necessary to carry out the provisions of the Plan. The Administrator shall determine any questions arising in the administration (including all questions of eligibility and determination of amount,time and manner of payments of benefits), construction, interpretation and application of the Plan, and the decision of the Administrator shall be final and binding on all persons. (b) Recordkeepine. The Administrator shall keep full and complete records of the administration of the Plan. The Administrator shall prepare such reports and such information concerning the Plan and the administration thereof by the Administrator as may be required under the Code or ERISA and the regulations promulgated thereunder. (c) Inspection of Records. The Administrator shall, during normal business hours, make available to each Participant for examination by the Participant at the principal office of the Administrator a copy of the Plan and such records of the Administrator as may pertain to such Participant. No Participant shall have the right to inquire as to or inspect the accounts or records with respect to other Participants. 12.04 COMPENSATION AND EXPENSES OF ADMINISTRATOR: The Administrator shall serve without compensation for services as such. All expenses of the Administrator shall be paid by the Employer. Such expenses shall include any expense incident to the functioning of the Plan, including, but not limited to, attorneys' fees, accounting and clerical charges, actuary fees and other costs of administering the Plan. 12.05 LIABILITY OF ADMINISTRATOR: Except as prohibited by law, the Administrator shall not be liable personally for any loss or damage or depreciation which may result in connection with the exercise o� duties or of discretion hereunder or upon any other act or omission hereunder except when due to willful misconduct. In the event the Administrator is not covered by fiduciary liability insurance or similar insurance arrangements, the Employer shall indemnify and hold harmless the Administrator from any and all claims, losses, damages, expenses (including reasonable counsel fees approved by the Administrator) and liability (including any reasonable amounts paid in settlement with the Employer's approval) arising from any act or omission of the Administrator, except when the same is determined to be due to the willful misconduct of the Administrator by a court of competent jurisdiction. 12.06 DELEGATIONS OF RESPONSIBILITY: The Administrator shall have the authority to delegate, from time to time, all or any part of its responsibilities under the Plan to such person or persons as it may deem advisable and in the same manner to revoke any such delegation of responsibilities which shall have the same force and effect for all purposes hereunder as if such action had been taken by the Administrator. The Administrator shall not be liable for any acts or omissions of any such delegate. The delegate shall report periodically to the Administrator concerning the discharge of the delegated responsibilities. 12.07 RIGHT TO RECEIVE AND RELEASE NECESSARY INFORMATION: The Administrator may release or obtain any information necessary for the application, implementation and determination of this Plan or other Plans without consent or notice to any person. This information may be released to or obtained from any insurance company, organization, or person subject to applicable law. Any individual claiming benefits under this Plan shall furnish to the Administrator such information as may be necessary to implement this provision. 26 12.08 CLAIM FOR BENEFITS: To obtain payment of any benefits under the Plan a Participant must comply with the rules and procedures of the particular benefit program elected pursuant to this Plan under which the Participant claims a benefit. 12.09 GENERAL CLAIMS REVIEW PROCEDURE: This provision shall apply only to the extent that a claim for benefits is not governed by a similar provision of a benefit program available under this Plan or is not governed by Section 12.10. (a) Initial Claim for Benefits. Each Participant may submit a claim for benefits to the Administrator as provided in Section 12.08. A Participant shall have no right to seek review of a denial of benefits, or to bring any action in any court to enforce a claim for benefits prior to his filing a claim for benefits and exhausting his rights to review under this section. When a claim for benefits has been filed properly, such claim for benefits shall be evaluated and the claimant shall be notified of the approval or the denial within (90) days after the receipt of such claim unless special circumstances require an extension of time for processing the claim. If such an extension of time for processing is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial ninety (90) day period which shall specify the special circumstances requiring an extension and the date by which a final decision will be reached (which date shall not be later than one hundred and eighty (180) days after the date on which the claim was filed.) A claimant shall be given a written notice in which the claimant shall be advised as to whether the claim is granted or denied, in whole or in part. If a claim is denied, in whole or in part, the claimant shall be given written notice which shall contain (a) the specific reasons for the denial, (b) references to pertinent plan provisions upon which the denial is based, (c) a description of any additional material or information necessary to perfect the claim and an explanation of why such material or information is necessary, and(d) the claimant's rights to seek review of the denial. (b) Review of Claim Denial. if a claim is denied, in whole or in part, the claimant shall have the right to request that the Administrator review the denial, provided that the claimant files a written request for review with the Administrator within sixty (60) days after the date on which the claimant received written notification of the denial. A claimant (or his duly authorized representative) may review pertinent documents and submit issues and comments in writing to the Administrator. Within sixty (60) days after a request is received, the review shall be made and the claimant shall be advised in writing of the decision on review , unless special circumstances require an extension of time for processing the review, in which case the claimant shall be given a written notification within such initial sixty (60) day period specifying the reasons for the extension and when such review shall be completed (provided that such review shall be completed within one hundred and twenty (120) days after the date on which the request for review was filed.) The decision on review shall be forwarded to the claimant in writing and shall include specific reasons for the decision and references to plan provisions upon which the decision is based. A decision on review shall be final and binding on all persons. (c) Exhaustion of Remedies. If a claimant fails to file a request for review in accordance with the procedures herein outlined, such claimant shall have no rights to review and shall have no right to bring action in any court and the denial of the claim shall become Final and binding on all persons for all purposes. 12.10 SPECIAL CLAIMS REVIEW PROCEDURE: The provisions of this Section 12.10 shall be applicable 27 to claims under the Group Medical Reimbursement Plan and the Group Medical Insurance Plan, effective on the first day of the first Plan Year beginning on or after July 1, 2002, but in no event later than January 1, 2003, provided such plans are subject to ERISA. (a) Benefit Denials: The Administrator is responsible for evaluating all claims for reimbursement under the Medical Expense Reimbursement Plan and the Group Medical Insurance Plan. The Administrator will decide a Participant's claim within a reasonable time not longer than 30 days after it is received. This time period may be extended for an additional 15 days for matters beyond the control of the Administrator, including in cases where a claim is incomplete. The Participant will receive written notice of any extension, including the reasons for the extension and informatio on the date by which a decision by the Administrator is expected to be made. The Participant will be given 45 days in which to complete an incomplete claim. The Administrator may secure independent medical or other advice and require such other evidence as it deems necessary to decide the claim. If the Administrator denies the claim, in whole or in part, the Participant will be furnished with a written notice of adverse benefit determination setting forth: 1. the specific reason or reasons for the denial; 2. reference to the specific Plan provision on which the denial is issued; 3. a description of any additional material or information necessary for the Participant to complete his claim and an explanation of why such material or information is necessary and 4, appropriate information as to the steps to be taken if the Participant wishes to appeal the Administrator's determination, including the participant's right to submit written comments and have them considered, his right to review (on request and at no charge) relevant documents and other information, and his right to file suit under ERISA with respect to any adverse determination after appeal of his claim. (b) Anyealing Denied Claims: If the Participant's claim is denied in whole or in part, he may appeal to the Administrator for a review of the denied claim. The appeal must be made in writing within 180 days of the Administrator's initial notice of adverse benefit determination, or else the participant will lose the right to appeal the denial. If the Participant does not appeal on time, he will also lose his right to file suit in court, as he will have failed to exhaust his internal administrative appeal rights, which is generally a prerequisite to bringing suit. A Participant's written appeal should state the reasons that he feels his claim should not have been denied. It should include any additional facts and/or documents that the Participant feels support his claim. The Participant may also ask additional questions and make written comments, and may review (on request and at no charge) documents and other information relevant to his appeal. The Administrator will review all written comment the Participant submits with his appeal. (c) Review of Appeal: The Administrator will review and decide the Participant's appeal within a reasonable time not longer than 60 days after it is submitted and will notify the Participant of its decision in writing. The individual who decides the appeal will not be the same individual who 28 decided the initial claim denial and will not be that individual's subordinate. The Administrator may secure independent medical or other advice and require such other evidence as it deems necessary to decide the appeal, except that any medical expert consulted in connection with the appeal will be different from any expert consulted in connection with the initial claim. (The identity of a medical expert consulted in connection with the Participant's appeal will be provided.) If the decision on appeal affirms the initial denial of the Participant's claim, the Participant will be furnished with a notice of adverse benefit determination on review setting forth: 1. The specific reason(s) for the denial, 2. The specific Plan provision(s)on which the decision is based, 3. A statement of the Participant's right to review (on request and at no charge) relevant documents and other information, 4. If the Administrator relied on an "internal rule, guideline, protocol, or other similar criterion" in making the decision, a description of the specific rule, guideline, protocol, or other similar criterion or a statement that such a rule, guideline, protocol, or other similar criterion was relied on and that a copy of such rule, guideline, protocol, or other criterion will be provided free of charge to the Participant upon request,"and 5. A statement of the Participant's right to bring suit under ERISA § 502(a). 12.11 PAYMENT TO REPRESENTATIVE: In the event that a guardian, conservator or other legal representative has been duly appointed for a Participant entitled to any payment under the Plan, any such payment due may be made to the legal representative making claim therefor, and such payment so made shall be in complete discharge of the liabilities of the Plan therefor and the obligations of the Administrator and the Employer. 12.12 PROTECTED HEALTH INFORMATION. The provisions of this Section will apply only to those portions of the Plan that are considered a group health plan for purposes of 45 CFR Parts 160 and 164. The Plan may disclose PHI to employees of the Employer, or to other persons, only to the extent such disclosure is required or permitted pursuant to 45 CFR Parts 160 and 164. The Plan has implemented administrative, physical, and technical safeguards to reasonably and appropriately protect, and restrict access to and use of, electronic PHI, in accordance with Subpart C of 45 CFR Part 164. The applicable claims procedures under the Plan shall be used to resolve any issues of non-compliance by such individuals.The Employer will: • not use or disclose PHI other than as permitted or required by the plan documents and permitted or required by law; • reasonably and appropriately safeguard electronic PHI created, received, maintained, or transmitted to or by it on behalf of the Plan, in accordance with Subpart C of 45 CFR Part 164; • implement administrative, physical, and technical safeguards that reasonably and appropriately protect the confidentiality, integrity, and availability of the electronic PHI that it creates, receives, maintains,or transmits on behalf of the Plan; • ensure that any agents including a subcontractors to whom it provides PHI received from the Plan agree to the same restrictions and conditions that apply to the Employer with respect to such information; 79 • not use or disclose PHI for employment-related actions and decisions or in connection with any other employee benefit plan of the Employer; • report to the Plan any use or disclosure of the information that is inconsistent with the permitted uses or disclosures provided for of which it becomes aware; • make available PHI in accordance with 45 CFR Section 164.524; • make available PHI for amendment and incorporate any amendments to PHI in accordance with 45 CFR Section 164.526; • make available the information required to provide an accounting of disclosures in accordance with 45 CFR Section 164.528; • make its internal practices, books, and records relating to the use and disclosure of PHI received from the Plan available to the Secretary of Health and Human Services or his designee upon request for purposes of determining compliance with 45 CFR Section 164.504(f); • if feasible, return or destroy all PHI received from the Plan that the Employer still maintains in any form and retain no copies of such information when no longer needed for the purposes for which the disclosure was made, except that, if such return or destruction is not feasible, limit further uses and disclosures to those purposes that make the return or destruction of the information infeasible; and, • ensure that the adequate separation required in paragraph (f)(2)(iii) of 45 CFR Section 164.504 is established. For purposes of this Section, "PHI" is "Protected Health information" as defined in 45 CFR Section 160.103, which is means individually identifiable health information, except as provided in paragraph (2) of the definition of"Protected Health Information" in 45 CFR Section 160.103, that is transmitted by electronic media; maintained in electronic media; or transmitted or maintained in any other form o: medium by a covered entity,as defined in 45 CFR Section 164.104. SECTION XIII MISCELLANEOUS PROVISIONS 13.01 INABILITY TO LOCATE PAYEE: If the Plan Administrator is unable to make payment to any Participant or other person to whom a payment is due under the Plan because it cannot ascertain the identity or whereabouts of such Participant or other person after reasonable efforts have been made to identify or locate such person, then such payment and all subsequent payments otherwise due to such Participant or other person shall be forfeited following a reasonable time after the date any such payment first became due. 13.02 FORMS AND PROOFS: Each Participant or Participant's Beneficiary eligible to receive any benefit hereunder shall complete such forms and furnish such proofs, receipts, and releases as shall be required by the Administrator. 13.03 NO GUARANTEE OF TAX CONSEQUENCES: Neither the Administrator nor the Company makes any commitment or guarantee that any amounts paid to or for the benefit of a Participant or a Dependent under the Plan will be excludable from the Participant's or Dependent's gross income for federal or state income tax purposes, or that any other federal or state tax treatment will apply to or be available to any Participant or Dependent. 30 13.04 PLAN NOT CONTRACT OF EMPLOYMENT: The Plan will not be deemed to constitute a contract of employment between the Employer and any Participant nor will the Plan be considered an inducement for the employment of any Participant or employee. Nothing contained in the Plan will be deemed to give any Participant or employee the right to be retained in the service of the Employer nor to interfere with the right of the Employer to discharge any Participant or employee at any time regardless of the effect such discharge may have upon that individual as a Participant in the Plan. 13.05 NON-ASSIGNABILITY: No benefit under the Plan shall be liable for any debt, liability, contract, engagement or tort of any Participant or his Beneficiary, nor be subject to charge, anticipation, sale, assignment, transfer, encumbrance, pledge, attachment, garnishment, execution or other voluntary or involuntary alienation or other legal or equitable process, nor transferability by operation of law. 13.06 SEVERABILITY: If any provision of the Plan will be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof will continue to be fully effective. 13.07 CONSTRUCTION: (a) Words used herein in the masculine or feminine gender shall be construed as the feminine or masculine gender, respectively where appropriate. (b) Words used herein in the singular or plural shall be construed as the plural or singular, respectively, where appropriate. 13.08 NONDISCRIMINATION: In accordance with Code Section 125(b)(1), (2), and (3), this Plan is intended not to discriminate in favor of Highly Compensated Participants (as defined in Code Section 125(e)(1)) as to contributions and benefits nor to provide more than 25%of all qualified benefits to Key Employees. If, in the judgment of the Administrator, more than 25%of the total nontaxable benefits are provided to Key Employees, or the Plan discriminates in any other manner (or is at risk of possible discrimination), then, notwithstanding any other provision contained herein to the contrary, and, in accordance with the applicable provisions of the Code, the Administrator shall, after written notification to affected Participants, reduce or adjust such contributions and benefits under the Plan as shall be necessary to insure that, in the judgment of the Administrator,the Plan shall not be discriminatory. 13.09 ERISA. The Plan shall be construed, enforced, and administered and the validity determined in accordance with the applicable provisions of the Employee Retirement Income Security Act of 1974 (as amended), the Internal Revenue Code of 1986 (as amended), and the laws of the State indicated in the Adoption Agreement. Notwithstanding anything to the contrary herein, the provisions of ERISA will not apply to this Plan if the Plan is exempt from coverage under ERISA. Should any provisions be determined to be void, invalid, or unenforceable by any court of competent jurisdiction, the Plan will continue to operate, and for purposes of the jurisdiction of the court only will be deemed not to include the provision determined to be void. PD 0710 .+ l 0 Attachment B Resolution for Adoption of Health Flexible Spending Arrangement � RESOLUTION NO. 2011- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING A HEALTH FLEXIBLE SPENDING ARRANGEMENT WHEREAS,the City of Grand Terrace ("City")desires to establish a self-insured medical reimbursement plan as defined by Internal Revenue Code section 105(h)(6); and. WHEREAS,the City desires to provide this plan as a health flexible spending arrangement(HFSA)as defined by section 106(c)(2)of the Internal Revenue Code and allow employees to participate in the HFSA; and WHEREAS,the City desires to adopt a salary reductions plan as part of the HFSA that complies with section 125 of the Internal Revenue Code to enable employees to elect to contribute toward the entire cost of the HFSA as a deduction from salary on a pre-tax basis; and WHEREAS,the City has determined that the above actions are in the best interests of the City and its employees; NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Grand Terrace hereby: Section 1. That the City Council adopts the Health Flexible Spending Arrangement (consisting of a plan document substantially in the form of Attachment A of the staff report for this Resolution); Section 2. That all employee contributions made under the Health Flexible Spending Arrangement will be made pursuant to elections as described in Attachment A; Section 3. That the City Manager is authorized and directed, in the name and on behalf of the City, to execute such documents and instruments and to take all such other and further actions as may be necessary or appropriate to carry out the purpose and intent of the foregoing resolutions. PASSED AND ADOPTED by the City Council of the City of Grand Terrace, California at a regular meeting held on the 8th day of February, 2011 by the following vote: ATTEST: City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace and the City Council thereof and the City Council thereof Resolution No. 2011- I, Brenda Mesa, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 8th day of February, 2011 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Brenda Mesa City Clerk Approved as to form: John R. Harper, City Attorney 0 Attachment C Broker of Record Designation O Broker of Record Designation This designation confirms that as of February 8, 2011, the organization listed below {"Client"} has appointed Keenan & Associates C'Keenan'} as the Broker of Record in connection with the following coverages: Dental, Vision, Life, AD&D, Long-term Disability, Short-term Disability, Section 125, Voluntary Insurance and EAP services and such additional coverages or insurance as Client may from time-to-time request from Keenan (the "Coverages') and the parties have agreed to the following additional terms. This appointment rescinds any and all previous appointments Client may have made with respect to the Coverages,and shall remain in full force and effect until cancelled in writing. With respect to the Coverages, Keenan shall have the exclusive authority and right to negotiate with insurance carriers and other coverage providers on Client's behalf. Keenan shall contact those markets that it has determined most likely to meet the needs of the Client as made known to Keenan,but shall not 0 necessarily contact every available market for the particular coverage being sought. Client shall not seek or acquire quotes directly from any insurance carrier or other coverage provider for the Coverages. Keenan is authorized to provide a copy of this designation to any insurer to demonstrate Keenan's authority to obtain the Coverages. Client shall provide Keenan with timely and accurate information necessary to obtain the Coverages and authorizes Keenan to provide such information to prospective insurers and other coverage providers. Except for Keenan's responsibilities with respect to funds obtained from or on behalf of Client, Keenan shall not be a fiduciary of Client. As compensation for its services, Keenan shall receive commissions from insurance carriers and/or other vendors for the placement of insurance coverage. Client shall have no responsibility for the payment of any such commission to Keenan. Additional information concerning Keenan's compensation Disclosure Policy is available online at xvww.Keenan.co or from your Keenan account representative. Disputes arising out of or relating to this designation, other agreements between the parties, or any other relationship involving Client and Keenan whether occurring prior to, as part of, or after the signing of this Agreement) shall first be resolved by good faith negotiations between representatives of the parties with decision-making authority. If either party determines that the dispute cannot be resolved through informal negotiation then the dispute shall be submitted to non-binding mediation. The site of the mediation and the selection of a mediator shall be determined by mutual agreement of the parties. If the dispute is not resolved through mediation within sixty (60) days following the first notification of a request to mediate, then either party shall have the right to require the matter to be resolved by final and binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, or such other arbitration procedures as may be agreed to in writing by the parties. Negotiation, mediation, and arbitration shall be the exclusive means of dispute resolution between Client and Keenan and their respective members, agents, employees and officers. The arbitration shall be conducted in the County of Los Angeles, California. Ci of Grand Terrace Keenan &Associates Signature: Si afar B - Betsy Adams By-, Steve Gedestad Title: City Manager Tide: Senior Vice President Addresj: 22795 Barton Rd. Address: 2355 Crenshaw Blvd., Ste. 200 Grand Terrace, CA 92313 Torrance, CA 90501 Tele h ne: 909-824-6621 T 1 hone: 310 212-0363 Fax: 909-783-7629 Fax: 951-715-0166 Attention: jo Verhelle Attention: 1 Laurie LoFranco BrOkrr(of RCCI)rd Dhs34natton Kcenan&Associates—Liccnsr*145 f37t Rev. l r I I I) AGENDA REPORT MEETING DATE: February 8, 2011 Council Item{X} CRA Item ( } TITLE: 1't Quarter and 2"d Quarter Financial Review PRESENTED BY: Bernie Simon, Finance Director REC0NBMNDATION; Accept and file BACKGROUND: Staff presents quarterly financial data generally consisting of actual revenues received, expenditures and encumbrances incurred in order to update the Council of the financial condition of the City and Agency in relation to the adopted budget. The FY 2010-11 budget was adopted at the June 22, 2010 meeting and consisted of 0 Original FY 2010-11 Budget -TABLE 1 Revenues Expenditures projected Ending Fund Balance General Fund 4,404,539 4,843,812 3,443,582 Special Revenue Funds 2,300,619 2,467,741 4,141,177 CRA Funds 9,758,007 8,734,195 9,885,358 Capital Project Funds 946,603 1,041,614 (99,544) Total $17,409,768 $17,087,362 $17,370,573 DISCUSSION: Staff is presenting the 1 st and 2nd quarter FYTD revenues and FYTD expenditures/encumbrances as well as the revised budget numbers. The budget has been updated for all appropriations approved by the Council and Agency since the beginning of the fiscal year. The revised budget is summarized in Table 2 and FYTD Revenues are summarized on Table 3 below. COUNCIL AGENDA ITEM NO. - r l FY 2010-11 Revised Operating Budget-TABLE 2 Fund Summary of Revenues&Expenditures Fund 0 Fund Projected Budget Variance Description Revenue Expenditures +/--_ _ 10 General -- 4,474,188 4,914,154 -439,96 11 Street 4,000 91,500 -87,500 12 Storm Drain 500 0 500 13 Park 7,250 16,629 -9,379 14 SLESF(AB3229 COPS) 100,000 100,000 0 15 Air Quality improvement 14,350 32,700 -18,350 16 Gas Tax 364,303 353,459 10,844 17 Traffic Safety 85,000 85,650 -650 19 Facilities 800 0 800 20 Measure Ni" 145,500 97,342 48,158 21 Waste Water Disposal 1,501,800 _ 1,645,615 -143,815 22 CDBG 142,781 142,781 0 26 Landscape&Lighting 14,335 _ _14,065 270 32 CRA Capital Projects T 1,044,630 �2,013,833 -969,203 33 CRA Debt Service _ __ �- 7,062,662 6,363,55S 699,107 34 CRA Low-Moderate Housing 1,650,715 1,326,010 324,705 46 Capital Improvements-Streets 652,206 652,206 0 47 Capital Project-Barton/Colton Bridge 85S,103 950,114 -95,011 Fund Total $18,120,123 $18,799,613 $-679,490 A summary of the FYTD expenditures through December 31, 2010: FY 2010-11 Actual Through December 31,2010-TABLE 3 ~� Fund Summary of Revenues&Expenditures/Encumbrances Fund 0 Fund Actual Actual Actual Expend/ Description Revenue Expend Encumb Encumb FYTO 12 31-10 FYM 12 3110 FYTD 1Z-3110 FYTD 12-31-10 10 General 1,219,653 2,150AN 1,264,792 3,415,226 11 Street 464,607 0 0 0 12 Storm Drain 2,311 0 0 0 13 Park 7,519 804 0 804 14 SLESF(AB3229 COPS) 0 50,250 49,500 99,750 15 Air Quality Improvement 4,209 32,226 0 32,226 16 Gas Tax 121,246 144,282 10,844 10,844 17 Traffic Safety 24,412 20,771 650 -650 19 Facilities 1,826 0 800 800 20 Measure"1" 114,116 4,672 48,158 48,158 21 Waste Water Disposal 388,678 304,793 -143,815 -143,815 22 CDBG 0 0 0 0 26 Landscape&Lighting 5,836 5,225 270 270 32 CRA Capital Projects 281,476 447,781 0 0 33 CRA Debt Service 1,899,924 1,963,298 699,107 699,107 34 CRA Low-Moderate Housing 398,400 615,167 324,705 324,705 46 Capital Improvements-Streets 0 16,729 0 0 47 Capital Project - Barton/Colton 0 950,114 95,011 -95,011 Bridge Fund Total $4,934,212 $6.076,881 $2,107,205 $8,184,086 3 Budget Revisions Changes to the original budget include continuing appropriations for the Federal Stimulus projects, various minor projects and contracts. New appropriations include the Senior Kitchen remodel $297,391, Grand Terrace Road improvement project for $266,041, EECBG grant for $69,649, Ball Field construction project $269,380 and purchase of a hybrid vehicle for $32,000. Fund Balance Staff will be presenting changes to the General Fund Balance Reserve at a later date as outlined in the workshop on January 25th to synchronize the General Fund Balance Reserve with the financial statements. Therefore, staff will defer discussion of fund balance reserves in this report. Revenue Revised estimated revenues in the budget are summarized by four major categories in Table 4. Taxes include property taxes, sales taxes, franchise fees, business licenses and subventions. DIF/Fees/Services Permits include development impact fees, building and planning fees, fines, permits and user fees. Interest/Other and transfers include Interest on investments, rents, miscellaneous and transfers-in. Total revenues received December 31, 2010 fiscal year to date amount to $4,934,212 as shown in Table 5. This represents 27.21/6 of total estimated revenue for the fiscal year. Generally, most of the revenue is received in the last part of the fiscal year. Total expenditures December FYTD amounted to $6,076,881 or 32.3% of Budget and a total of$2,107,205 or 11.2% of the budget was encumbered through purchase orders through December 31, 2010. A total of$8,184,086 or 43.5%of the budget was expended or encumbered. Revenue highlights for FYTD December 31, 2010 include: • $472,000 generated for development impact fees during the first six months of the fiscal year on two commercial developments. • Gas Tax revenue recognized of$121,000, however, approximately 70%was received and the other 30°/a is deferred until May 2011. • Largest overall revenue source was property tax of$2,141,925. $163,653 was deposited to the general fund and $1,978,272 of tax increment was deposited in the CRA Debt Service Fund and CRA Low Mod Fund accordingly. + $17,243 delinquent trash fees collected on tax roll along with $9,078 of delinquent code enforcement fines collected on tax roll. • Property tax collections net of$1,707 in negative supplemental assessments countywide, A FY 2010-11 Revenues--Revised Budget -TABLE 4 Revenues by Category Fund Revised Taxes/ DIF/Fees Interest Budget Intergov Services Other FY 2010-11 Permits Transfers 10 General 4,474,188 2,318,651 1,787,873 367,664 11 Street 4,000 0 0 4,000 12 Storm Drain 500 0 0 500 13 Park 7250 0 6,000 _ 1,750 14 SLESF(AB3229 COPS) 100,000 100,000 ____0 0 15 Air Quality Improvement 14,350 14,000 0 n 350 16 Gas Tax 364,303 328,82-3 0 35AM 17 Traffic Safety 85,000 0 85,000 0 19 Facilities 800 0 0 800 20 Measure"I" 145,500 _ 145,000 0 500 21 Waste Water Disposal 1,501,800 T _0 1,481,300 20,500 22 CDBG 142,781 _ 142,781 0 0 26 Landscape&Lighting 14,335 14,335 0 0 32 CRA Capital Projects 1,044,630 0 0 1,044,630 33 CRA Debt Service _ __ _ _ 7,062,662 6,391,715 _ 0 670,947 34 CRA Low-Moderate Dousing 1,650,715 1,612,815 _0 37,900 46 Capital Improvements-Streets - 652,206 _ _ 0 0 - 652,206 47 Capital Project-Barton/Colton Bridge 955,103 0 0 855,103 TOTAL $18,120,123 $11,068,120 $3,360,173 $3,691,830 0 �-FY 2010.11 Revenues-Actual Through December 31,2010-TABLE 5 Revenues by Category _ Fund Actual Taxes/ y DIF/Fees Interest Revenues Intergov Services Other FYM i2-3110 Permits Transfers 10 General 2,219,653 386,590 638,873 194,190 11 Street 4.64,607 0 463,540 1,067 12 Storm Drain 2,311 0 0 2,311 13 Park - 7,518 0 7,241 277 14 SLESF(AB3229 COPS) f_ 0 0 0 0 15 Air Quality Improvement 4,209 4,117 0 92 16 Gas Tax 121,246 121,153 0 93 17 Traffic Safety 24,412 0 24,366 45 19 Facilities 1,826 0 1,776 50 20 Measure"1" 114,116 113,941 0 175 21 Waste Water Disposal 388,679 0 385,415 3,264 22 CDSG 0 0 0 0 26 Landscape&Lighting 5,836 5,786 0 50 32 CRA Capital Projects 281,476 0 0 291,476 33 CRA Debt Service 1,899,924 1,582,218 0 317,706 34 CRA Low-Moderate Housing 398,400 395,554 0 2,846 46 Capital Improvements-Streets 0 0 0 0 47 Capital Project-Barton/Colton Bridge 0 0 0 0 TOTAL $4,934,212 $2,609,359 $1,521,211 $903,642 5 General Fund Revenue The good news is that property taxes and sales taxes no longer appear to be declining at this time. Property tax receipts increased in the first six months compared to prior year and BOE has increase our monthly sales tax advance in view of the higher sales tax for the quarter ending June 30'h for the first time in two years. Property taxes received do not include any potential property tax refunds due to property tax appeals and lowered assessments. Building and planning experienced an increase fees compared to the previous year. General Fund revenue is outlined below in Table 6. The revised Budget for FY 20I0-11 consist of estimated revenues in the categories outlined below in the amount of$4,474,188. Through December 31, 2010 $1,219,653 or 27.20/6 was received fiscal year to date. If the "double up" residual receipts payment effect is subtracted from the prior fiscal year to date revenue in the amount of$150,000, the adjusted prior year revenue through December 31, 2009 would be only $1,116,135 and$103,518 less than the current fiscal year to date revenue. Generally, most of General Fund revenues are received in the latter part of the fiscal year. The large part of the property taxes is received in installments in December and May. Much of the fees such as business licenses, rental fees and dog licenses are not paid until the beginning of the year. Also, the SCE, SCG franchise fees are generally not received until May. f1 FY 2010-11 General Fund Revenues-TABLE 6 �J Budget, 2"d Quarter Received FYTD and Comparison to Prior Fiscal Year Description Revised 2'Quarter 2"d Quarter Budget FYTD Prior FYTD FY 2010-1.1 12-31-10 12-31-09__ Property Taxes 1,422,000 163,653 114,396 Licenses &Permits 591,710 119,218 97,137 Sales Tax/Sales Tax-In lieu 744,825 202,984 183,665 Intergovernmental 151,826 19,983 41,204 Charges for Services 62,850 22,268 6,874 Building Fees 47,000 58,583 17,817 Planning Fees 17,850 18,500 15,075 Recreation Fees 4,000 0 2,981 Childcare Fees 1,024,163 409,543 451,672 Park Fees 10,950 910 1,050 Fines&Forfeitures 29,350 9,851 12,021 Use of Money & Property 61,664 23,278 21,911 Miscellaneous Revenue 1,000 20,912 332 Transfers 305,000 150,000 300,000 TOTAL $4,474,188 $1,219,653 $1,266,135 6 Expenditures-Overall FY 2010-11 revised budget expenditures in Table 7 amount to $18,799,613. $2,809,349 is for salary, stipends and benefits. $5,771,920 is for maintenancelcontracts and operations of which law enforcement is $2,025,596 or 35% and represents 41% of total General Fund Expenditures of$4.9 million. Capital expenditures, debt service payments, transfers out and cost allocation comprise a total of$10,218,344 overall- FY 2010-11 Expenditures-Revised Budget-TABLE 7 Expenditures by Category Fund Revised Salaries& Maint. Capital Budget Benefits Contracts Other _ FY 2010-11 Operations Transfers 10 General 4,914,154 -_2,106,403 - 3,224,324 -416,573 11 Street 91,500 0 0 91,500 12 Storm Drain _ 0 0 . _0 _ 0 13 Park _ _ _ 16,6290 ^ � �15,0_00 ^- -----_1,629-- 14 SLESF(AB3229 COPS) 100,000 0 99,500 . _500_ 15 Air Quality Improvement 32,700 0T_ 0 32,700 16 Gas Tax 353,459 138,366 180,460 34,633 17 Traffic Safety 85,650 8,980 76,075 595 19 Facilities _ . ,. ,. t. - -- - - --0 - —0 - ----0 0 . 20 Measure "1" 97,342 0 88,000 9,342 21 Waste Water Disposal 1,645,615 71,032 1,452,948 121,735 22 CDBG 1.42,781 0 62,781 _80_,000 26 Landscape &Lighting 14,065 0 13,579 -486 32 CRA Capital Projects 2,013,833 314,732 270,589 1,428,512 33 CRA Debt Service 6,363,555 0 235,085 6,128,470 34 CRA Low-Moderate Housing 1,326,010 169,836 53,679 1,102,495 46 Capital Improvements-Streets 652,206 0 0 652,206 47 Capital Project - Barton/Colton 950,114 0 0 950,114 Bridge TOTAL $18,799,613 $2,809,349 $5,771,920 $10,218,344 FY 2010-11 actual expenditures FYTD December 31, 2010 in Table 8 amount to $8,184,086. $1,174,909 is for salary, stipends and benefits. $4,191,217 is for maintenancelcontracts and operations of which law enforcement expended and encumbered of $2,027,968. Capital expenditures, debt service payments, transfers out and cost allocation comprise a total of $2,817,960 overall. 7 FY 2010-11 Actual Expenditures/Encumbrances Through December 31,2010-TABLE S Expenditures by Category Fund Actual Salaries& Maint. Capital Expend/Enc Benefits Contracts Other 12-31-10 Operations_ Transfers_ 10 General 3,415,226 1,020,164 T2,654,656 -259,594 11 Street 0 0 0 0 12 Storm Drain 0 0 0 0 13 Park 804 0 0 804 14 SLESF(AB3229 COPS) 99,750 0 99500 250 15 Air Quality Improvement 32,226 0 0 32,226 16 Gas Tax 186,724 32,218 137,190 17,316 17 Traffic Safety 20,771 1,668 18,805 298 19 Facilities 0 0 0 0 20 Measure"1" 4,672 0 0 4,672 21 Waste Water Disposal 719,591 16,367 642,346 60,868 22 CDBG 0 _0 - 0 0 26 Landscape&Lighting 5,225 0 4,253 972 32 CRA Capital Projects 742,552 69,823 334,940 337,789 33 CRA Debt Service 1,963,298 0 0 1,963,298 34 CRA Low-Moderate Housing 615,167 34,669 509,656 70,842 46 Capital Improvements-Streets 350,090 0 0 350,090 47 Capital Project-Barton/Calton Bridge 28,000 0 0 28,000 TOTAL $8,184,086 $2,809,349 $5,771,920 $2,817,960 QExpenditures-General Fund Revised General Fund Expenditure budget of$4,914,154 is categorized on Table 9 below. FY 2010-11 General Fund Expenditures-Revised Budget TABLE 9 Expenditures by Category _ Description Revised Salaries& Maim. Capital Budget Benefits Contracts Other FY2010-11 Operations Transfers City Council 47,300 33,000 14,300 0 City Manager 267,691 253,091 14,600 0 City Clerk 187,890 143,224 44,666 0 Finance 268,738 205,982 62,756 0 City Attorney 60,000 0 60,000 0 Building&Safety 135,543 82,293 53,250 0 Public Works(+portion of Community Services) 232,669 126,307 99,362 7,000 Community Events(formerly Community Services) 55,201 48,201 4,000 3,000 Rental Inspection 65,043 60,743 4,300 0 Enforcement Programs(+portion of Community Services) 134,039 0 134,039 0 Non Departmental 300,715 0 257,231 44.484 Facilities Maintenance 172,849 0 103,200 69 649 Community Development-Planning 211,103 198,703 12,400 0 Information Systems 78,541 53,291 22,750 2,500 Law Enforcement 2,025,596 0 2,2025,596 0 Child Care Services 871,832 757.138 112,694 2,000 Park Maintenance 174,171 63,471 105,700 5,000 NPDES(formerly in Waste Water Fund) 91,891 59,523 32,368 0 a Storm Drain Maintenance 16,000 0 16,000 0 Planning Commission 2,500 2,500 0 0 Historical/Cultural Commission 1,200 0 1,200 0 Senior Citizens Program 52,529 18,936 33,593 0 Emergency Operations Committee/CERT 10,320 0 10,320 0 Transfers 0 0 0 0 Cost Allocation -549,207 0 0 -549,207 TOTAL $4,914,154 $2,106,403 $3,224,325 $-416,574 Actual General Fund FYTD expenditures and encumbrances through December 31, 2010 are categorized on Table 10 below. General Fund Expenditure highlights through FYTD December 31, 2010 include: • $2,150,434 or 43.7% of the General Fund Budget expended with 500/a of the year completed. • $1,264,792 or 25.8% of the General Fund Budget encumbered with 501/6 of the year completed. • Total of$3,415,226 or 69.5% General Fund Budget expended and encumbered with 50% of the year completed. FY 2010-11 General Fund Expenditures/Encumbrances-TABLE 10 FYTD December 31,2010 Description Actual Actual Expend/ Expend Encumb Encumb FYTD 12-31-10 FYTD 12-31-10 FVM 12 31-10 City Council 20,735 0 20,735 City Manager 131,471 0 131,471 City Clerk 83,128 _ 6,394 89,S22 Finance _ 142,640 __ 992 143,632 City Attorney E- _ __ r _ 29, y_ 0 29,846 Building&Safety __ 51,861 T 33,539 85,400 Public Works(+portion of Community Services) 93,409 _ 37,570 130,979 Community Events(formerly Community Services) 36,465 ,T_ _ _ 0 36,465 Rental Inspection 31,042 0 31,042 Enforcement Programs (+ portion of Community 51,338 68,701 120,039 Services) Non Departmental 64,595 8,346 72,941 Facilities Maintenance 40,534 14,836 SS,370 Community Development-Planning 103,904 0 103,904 Information Systems 32,070 397 32,467 Law Enforcement 986,918 1,041,050 2,027,968 Child Care Services 403,703 35,326 439,029 Park Maintenance 58,767 7,319 66,086 NPDES(formerly in Waste Water Fund) 42,613 7,450 50,063 Storm Drain Maintenance 0 0 0 Planning Commission 1,052 0 1,052 Historical/Cultural Commission 1,120 0 1,120 Senior Citizens Program 15,260 2,743 18,003 Emergency Operations Committee/CERT 2,561 129 2,690 Transfer to Gas Tax 0 0 0 Transfer to SLESF(COPS) 0 0 0 Cost Allocation -274,598 -274,598 -274,S98 TOTAL $2,150,434 $1,264,792 $3,415,226 9 Actual FYTD expenditures and encumbrances through December 31, 2010 are categorized on Table 11 below and compared to the prior year. Current year expenditures and encumbrances of $3,415,226 is $197,078 less than the previous year. FY 2010-11 General Fund Expenditures/Encumbrances-TABLE 11 Budget,FYTD December 31,2020 and Comparison to Prior Fiscal Year Description Revised z'Quarter 2"d Quarter Budget FYTD Prior FYTD FY 2010-11 12-31-10 12-31409 City Council 47,300 20,735 30,806 City Manager 267,691 131,471 105,134 City Clerk 187,890 89,522 108,307 Finance 268,738 143,632 188,329 City Attorney 60,000 29,846 34,914 Building&Safety 135,543 85,400 75,545 Public Works(+portion of Community Services) 232,669 130,979 91,557 Community Events(formerly Community Services) 55,201 36,465 328,666 Rental inspection 65,043 31,042 27,537 Enforcement Programs (+ portion of Community 134,039 120,039 0 Services) Non Departmental 300,715 72,941 496,319 Facilities Maintenance 172,849 55,370 0 Community Development-Planning 211,103 103,904 131,365 Information Systems 78,541 32,467 48,743 Law Enforcement 2,025,596 2,027,968 1,623,993 Child Care Services 871,832 439,029 4S1,6S2 Park Maintenance 174,171 66,086 118,3665 NPDES(formerly in Waste Water Fund) 91,891 50,063 0 Storm Drain Maintenance 16,000 0 5,400 Planning Commission 2,500 1,052 667 Historical/Cultural Commission 1,200 1,120 291 Senior Citizens Program 52,529 18,003 15,766 Emergency Operations Committee/CERT 10,320 2,690 3,023 Transfer to Gas Tax 0 0 0 Transfer to SLESF(COPS) 0 0 0 Cost Allocation -549,207 -274,598 -284,076 TOTAL $4,914,154 $3,415,226 $3,612,304 FISCAL IMPACT: None by this report. 3D Respectfully submitted, Bernie Simon, Finance Director Manager Approval: Betsy Nf Adam City Manager ATTACHMENTS: ATTACHMENTS: 1) FY 2010-11 Financial Results a. Revenue by Quarter b. Revenue FYTD 12-31-10 by Category c. Expenditures/Encumbrances FYTD 12-31-10 and by Category d. Expenditures/Encumbrances by Quarter 2) FY 2009-10— 1st Quarter Financial Results a. Revenue by Quarter b. Revenue FY 2009-10 by Category c. Expenditures/Encumbrances FY 2009-10 by Category d. Expenditures/Encumbrances by Quarter 0 CALIFORNIA City and CRA of Grand Terrace FY 2010-11 0 Financial Report by FY Quarter 2"d Quarter December 31 , 2010 CALIFORNIA City and CRA of Grand Terrace FY 2010-11 O REVENUE by FY QUARTER 2"d Quarter December 31 , 2010 City and CRA of Grand Terrace Budget: FY 2010-11 Revenue Report for Six(6) Months July 1, 2010 through December 31, 2010 Fiscal Year to Date Revenue Analysis by Quarter REVENUES Actual Actual Actor! Actual Sept 30,10 % 0ee.31, 10 % M4w.31, 11 16 .fan.30. 11 K Revised FY-to-date 25% FY-to-date FY-ro-date 73% FY-to-date t00% Budget Revenue Reveaw Revenue Revenue FY 2010-11 Revenue -IROPERTY TAXES 2,434 0.2% 163.653 11.5% 0 0.00/0 0 0.0%1 1 1,422 000 ,CENSES AND PERMITS 10,844 1.8% 119.218 20.1% 0 0.0% 0 0.0% 591,710 SALES TAX/SALES TAX-IN LIEU 93,800 12.6% 202,984 27.3% 0 0.0% 0 0.0% 744,825 INTERGOVERNMENTAL 5,919 3.9% 19 953 13.1% 0 0.0% 0 0.0% 151.826 CHARGES FOR SERVICES 5,883 8.9% 22 268 33.4% 0 0.0% 0 0.0% 62,850 BUILDING FEES 11.368 24.2% 58,883 124.6% 0 0.0% 0 0.0% 47.000, PLANNING FEES 10,350 $8.0% 18.600 103.6% 0 0.0% 0 0.0910 17,850 RECREATION FEES 0 0.0% 0 0.0%, 0 0.0% 0 0.0% 4,000 CHILD CARE FEES 205,287 20.0% 409,543 40.0% 0 0.0% 0 0.0% 1,024,163 PARK FEES 670 6.1% 910 8.3% 0 0.0% 0 0.0% IO 950 FINES&FORFEITURES 3,631 12.4% 9,851 33.6% 0 0.0% 0 0,0% 1 29,350 USE OF MONEY&PROPERTY 12,656 20-5% 23,278 37.7% 0 0.0% 0 0.0% 61,664 MISCELLANEOUS REVENUE 18,133 1818.3% 20,912 2091.2% 0 0.0% 0 0.G% 1,000 TRANSFERS 75,000 24.6% 150 000 49.2% 0 0.0% 0 0.0% 305,000 TOTALIO- GENERALFUND 455,692 10.2% 1,219.653 27.3% 0 0.0% 0 0.0% 4,474,188 11-STREET FUND 1,067 26.7% 464,607 11615.2% 0 0.0% 0 0.0% 4.000 12-STORM DRAIN FUND 77 18.4% 2.311 462.2%j 0 0.0% 0 0.0% 500 13-PARK FUND 277 3 8% 7 518 103.7%n 0 0.0% 0 0.0% 7.260 SLESF(AB3229 COPS) 0 0-0% 0 0.0% 0 0.0% 0 0.0% 100.000 AIR QUALITY IMPROVEMENT FUND 388 2.7% 4,209 29.3% 0 0.0% 0 0.0% 14,350 16-GAS TAX FUND 93 0.0% 121,246 33.3% 0 0.0% 0 0.0% 364,303 17-TRAFFIC SAFETY FUND 12.407 14.6% 24,412, 28.7% 0 0.0% 0 0.0% 85 600 19-FACILITIES FUND 50 6.3% 1,8261 228.3% 0 0.0% 0 0.0% 800 20 MEASURE"I"FUND 27,515 18.9% 114,1161 78.4% 0 0.0% 0 0.0% 145,500 21-WASTE WATER DISPOSAL FUND 230.344 15.3% 388.678 25.9% 0 0.0% 0 0.0% 1.501.800 22-CDBG FUND 0 0.0% 0 0.0% 0 0.0% 0 0.0% 142 781 26-LNDSCP&LGTG ASSESSMENT DIST 0 0.0% 5.836 40.7% 0 0.0% 0 0.0% 14,335 44.CAPITAL PROJECT-BIKE LANE 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 46-CAPITAL IMPROVEMENTS STREETS 0 0.0% 0 0.0% 0 0.0010 0 0.0% 652,206 47-CAP.PRJ.BARTON/COLTON BRIDGE 0 0.0% 0 0.0% 0 0.0% 0 0.0% 888.103 TOTAL OTHER CITY FUNDS 272,218 7.0% 1.134,759 0 0.0% 0 0.0% 3,887,928 32-CAPITAL PROJECTS FUND L65,402 2S 4% 281.476 20�9% 0 0.0% 0 0.0% 1:044 630 33-DEBT SERVICE FUND 162,881 2.3%1 1.899 924 26.9% 0 0.0% 0 0.0% 7,0621662 34-LOW INCOME ROUSING FUND 2,480 0.2% 198 400 24.1% 0 0.0°�° 0 0.0% 1,650.715 TOTAL CRA FUNDS 430.763 4.4% 2.579,800 26.4% 0 0.0% D 0.0%0 9,758.007 Grand Total-ALL FUNDS 1,158,673 6.4% 4,934.212- 2T 18,120,123 Notes Revenues include Transfers-In =.•._VeS1t.LS b'J ..-UaJ:ter 1'rD 4Y ?010-11 City and CRA of Grand Terrace Budget:FY 2010.11 Revenue Report for Six(6) Months July 1, 2010 through December 31,2010 Fiscal Year to Date Revenue Analysis by Type First Quarter Dec.3f id Property Other Intergovem Licenses Charge User Impact/ Fines S Interest TSF Total FY-to'dafe Taxes Taxes mental Permits For Fee Cap Impry Forfeitures 8 Use Other Reverum Ancrement Services Fees i hr,i.,l It-W�r � - 1 219 853 163,853 202,984t4.9117 177-801 40,768 410.453 0 $,851 23,278 170 912 1,21t3,653 11-STREET FUND '464,607 0 0 0 0 0 463,b40 0 1,087 0 464,607 11-51 Ohm UICAiN FUND 2,311 0 0 0 0 0 0 0 77 2-234 2,311 li PARK 1UNO 7,518 0 0 0 0 0 7,241 0 277 0 7,818 14 5tkst{AE�a.2y[uP�l 0 0 0 0 0 0 0 0 0 0 0 IS AIR 4u 1Lt TY IhtPHCTVEhIEN T FUNi] 4.209 0 0 0 0 0 01 0 92 0 4,209 16-CAS IAX 1-UND 121,298 01 121,153 0 01 0 0 0 0 93 0 121,246 17-1HA11IC Sj%J-0 r FUND 24,412 0 0 0 0 0 0 0 24,360 46 0 24,411 19 FACILAIESfUND 1,826 0 0 0 0 0 0 1;776 0 50 0 1,826 10-MLMUKE'Y FUND 114,116 0 113.941 0 0 0 0 0 0 176 0 114,118 21-WASIL W++IeK DisPUSAL FUND 368,678 0 0 0 0 0 38$415 0 0 3,264 0 388,679 24-LOBUFUNO 0 0 0 0 0 0 0 0 0 0 0 0 2b-LNDSCP&Lki%455cSSIAENFi3IST 5,838 0 5.786 0 0 0 0 0 0 50 0 5,836 44-CAPI GAL F,Ro.i.ir-BiKE LANL 0 0 0 0 0 0 0 0 0 0 01. 0 au-CAPITAL IMPROVEMENTS-STREETS 0 0 0 0 0 0 0 0 0 0 0 0 41-CAP-PId 1.4AT0N/COLTON 8HiDGE 0 0 0 0 0 0 0 0 0 0 0 0 IOTA+-CrTrik-4 GiPT FikNDS 1 134 769 0 240,880 4.117 0 0 388,416 472,597 24,368 5,18+0 2.234 1.134,769 32-CAPITAL PROJECTS FUND 281.476 0 0 0 0 0 0 0 0 30 748 2W,72lS 281,476 ii OEIsT StPtL'iCE FUND 1,899,924 1,582 2L8 0 0 0 0 0 0 0 8,056 309,850 1 889 824 34-LOW iNCOhtE HOUSING FUND 398 400 39b 554 0 0 0 0 0 0 0 2,846 0 398,400 IOTA..CH A F 0N05 2 579 800 I,977,7T2 0 0 0 0 0 0 0 41,650 560 378 2,579,800 Grand Total-ALL FUNDS 4,934,212 2,141,425 443,864 24,070 177,801 40,76a 795,568 472,65T 34.2171 -11AI 733,524 4-934,212 43.40% 9 00% 0 49% 3.60% 0.539E 16.13% 9 58% 0.69% 1.420A 14.87% 100 00% i+l Luc t�¢-..111...IP,��+lUC lldn�lurs•ill Revenues CQuarter FYTD FY 2010-11 0 CALIFORNIA City and CRA of Grand Terrace FY 2010-11 � Expenditures by FY QUARTER 2"a Quarter December 31 , 2010 Expenditure Report by Category -FYTD -Dec. 31, 2010 FY 2010-11 30%of FY Completed CATEGORY July 1, 2010 through Dec.31, 2010 FYTD FYTD TOTAL salaries afaint Capital B Cat &pendi. Encumb- FYTD k C..ntra.is do y O Benefits h Other Lures rances Expend. Encumb. Operations 110 CITY COUNCIL 20.735 0 20,735 14.565 6,170 0 120 CITY MANAGER 131,471 0 131,471 129,713 1,758 0 125 CITY CLERK 83,128 6 394 39,522 71,385 18,137 0 140 FINANCE 142,640 992 143,632 101,991 41 641 0 160 CITY ATTORNEY 29,846 0 29,846 0 29,846 0 172 BUILDING BUILgING AND SAFETY 51 861 33,539 85,400 41 640 43,760 175 PUBLIC WQRKS 93,409 37,570 130,979 56,665 74,314 .180 COMMUNITY EVENTS 36,465 0 36,465 31 648 305 4.5191 185 RENTAL INSPECTION PROG 31,042 0 31,042 26,839 4.203 0 187 ENFQRCEMENT PROGRAMS 51,338 68,701 120,039 0 120,039 0 190 NON-DEPARTMENTAL 64,598 8,346 72,941 0 67.249 5,692 195 FACILITIES MAINTENANCE 40 534 14 836 58 370 0 51 770 3 600 7 COMMUNITY V PM N P 103,904 0 103,904 98.914 4,990 0 380 INFORM TI N SYSTEMS 32,070 397 32,467 25,125 7,342 0 410 LAW ENFORCEMENT 986 918 1,041,060 2,027,968 0 2 027 968 0 440 CHILD CARE SERVICE5403,703 35 326 439,029 357 269 81,760 0 450 PARK MAINTENANCE 58,767 7,319 66,086 32,186 32,700 1.200 625 NPOES 42,613 7,450 50,063 29,677 20 386 0 31 STORM DBAIN MAINTENANCE 0 0 0 0 0 0 801 PLANNING I E N 1052 0 1052 1052 0 0 804 HISTORICALICULIUBAL C M ITT 1 120 0 1,120 0 1,120 0 805 SENIOR1 1 N PROGRAM 15,260 2,743 MOW 1,495 16,508 0 808 EMERgENCY OPERATION$gENTEOPERATION R 2,561 129 2 690 0 2,690 999 C T l (274,598) 0 (274,598) 0 0 274 59 TOTAL GENERAL FUND 2,150,434 1,264,792 . 3,4i5,226 1,020,164 2,654,656 (259,594) 63.0% 37 0% 100.0% 29.9% 77.7% -74% 1 -STREET F N 0 0 0 0 0 0 12-STORM DRAIN FUND 0 0 0 0 0 0 13-PARKFUND 804 0 804 0 0 804 14-5LESF(AB3729 COPS1 50,250 49 500 99 T50 0 99,500 250 1 -AIR QUALITY IMPROVEMENT FUND 32.226 0 32,226 0 0 32,226 1 -GAS TAX FUND 144,282 42 442 186,724 32 218 137,190 17,316 17-TRAFFIC SAFETY FUND 20,771 0 20,771 1,668 18,805 298 1 -FACILITIES FUND 0 0 0 0 0 0 2 - M A R "I" FUND 4.672 0 4,672 0 0 4.672 21-WASTEWATER D15POSAL FUND 304,793 414 788 719,581 16 367 642,346 60 868 22-CQBG FUNQ 0 0 0 0 0 0 26-LNDS P& L TG ASSE 5MENT DIST 5,2125 0 5,225 0 4,253 972 44-CAPITAL PROJECT BIKE LANE 0 0 0 3 0 0 16-gAPITAL IMPROVEMENTS-STREET 320,449 29,641 350,090 3 0 350,09 47 -CAP.PRI. KART N COLTON BRIDGE 1 16.729 11,271 28,000 0 3 28,000 TOTAL OTHER CITY FUNDS 900,201 -47,642 1,447,843 t'0,253 902,094 •195,496 62.1°h 37 S% 100.0% 3.N 12.3% 34 2% 12-CAPITAL PROJECTS Fi inb 447,781 294,771 742 552 -9 823 2.?4.940 .337.789 '3- DEBT yEPVICE Frj jD 1"363 298 3 1,363,298 i -210.129 '.;i 3.127 4-L(:01 M7,,CME H0,'.s`3sMG F' t iD 3I 5.:67 _3 315,167 J.ae9 :,., 056 ) '',12 ;TAL i;r�A FLINGS L026.2u6 .4.MI 3 l21.017 ;;4,Y9Z :34,167 _ :82.058 - it :r1nd fatal-.-ALL FUNDS } S,0'6,S$1 1 137 205 3,134.086 1,174 y091 1 i91.217 2,317,260 i .1 3% .5.7"'.I 00.0% 1.1% i 1.2% w,tpenc itures 6y Category MD 2010-11 City and CRA of Grand Terrace FY 2010-11 Expenditure Report for Six (6) Months July 1, 2009 through December 31, 2010 Fiscal Year to Date Expenditure Analysis by Quarter EXPENDITURES AND ENCUMBRANCES Sept 30, 10 it Dec.31, 10 % Mar.31, 11 % Jun.30, 11 % Revised FY-to-date S3% FY-to-date 50% FY-t04ate, 75% FY-ta-date tom Budget Expend. Expend. Expend Expend. FY 2010-11 Encumb. Encumb. Encumb. Encumb 110 CITY COUNCIL 9,123 19.3% 20,735 43 8% 0 0.0% 0 0.0% 47,300 120 CITY MANAGER 58,842 22 0% 131.471 49 1% 0 00% 0 00% 267,691 125 CITY CLERK 50,229 26.7% 89,522 47.6% 0 0.0% 0 0,0% 187.890 140 FINANCE 59,697 22.2% 143.632 53.4% 0 0.0% 0 0.0% 268,738 160 CITY ATTORNEY 15,488 25 8% 29,846 49 7% 0 0.0% 0 00% 60,000 172 BUILDING AND SAFETY 61,817 45.6% 85,400 63.0% 0 a0% 0 0.0% 135,543 175 PUBLIC WORKS 87,799 37.7% 130.979 55.3% 0 00%1 0 0.0% 232.669 180 COMMUNITY EVENTS 20,537 37 2% 36,465 661%1 0 00% 0 00% 55,201 185 RENTAL INSPECTION PROG 17,251 26,5% 31,042 477%1 0 00% 0 0.0% 66,043 187 ENFORCEMENT PROGRAMS 120,039 89 6% 120 039 896%1 0 00% 0 00% 134,039 190 NON-DEPARTMENTAL 45,352 151% T2,941 24.3% 0 00% 0 00% 300,715 195 FACILITIES MAINTENANCE 35,645 20 5% 55,370 32 0% 0 0.0% 0 00% 172,849 370 COMMUNITY DEVELOPMENT 47,642 22.6% 103,904 49.2% 0 0.0% 0 00% 211,103 380 INFORMATION SYSTEMS 12,163 15 5% 32,467 41.3% 0 0.0% 0 00% 78,541 410 LAW ENFORCEMENT 2.006.117 99.0% 2,027,968 100 1% 0 0.0% 0 00% 2,025,596 440 CHILD CARE SERVICES 225,706 25.9% 439,029 50.456 0 00% 0 00% 871,832 450 PARK MAINTENANCE 36,028 20 7% 66,086 379%1 0 0.0% 0 1 0.0% 174.171 625 NPDES 28,675 31-21a 50,063 54.5% 0 0.0% 0 0.0% 1 91,891 631 STORM DRAIN MAINTENANC 0 00% 0 0.0% 0 0.0% 0 0.0% 16,000 801 PLANNING COMMISSION 500 20 0% 1,052 42.1% 0 00% 0 0.0% 2,500 804 HISTORICAL/CULTURAL COM 0 00% 1,120 93.3% 0 00% 0 0.0% 1,200 805 SENIOR CITIZENS PROGRAM 11,439 21 B% 18,003 34.3% 0 00% 0 00% 52,529 808 EMERGENCY OPERATIONS CE 961 9 3% 2,690 26.1% 0 00% 0 0.0% 10,320 499 COST ALLOCATION 137,299 5.0% 274,598 50 0% 0 00% 0 00% 549,207 TOTAL GENERAL FUND 2,913,751 57.3% 3,415,228 69.5% 0 0.0% 0 0.0% 4,914,154 11-STREET FUND 0 00% 0 0.0% 0 0.0% 0 0.01,16 91,500 12-STORM DRAIN FUND 0 TO% 0 0.0% 0 0.0% 0 00% 0 13-PARK FUND 102 2 4% 804 4.8% 0 0.0% 0 00% 16 629 14-SLESF AB3229 COPS 39,625 99,6% 99,750 99 8% 0 00% 0 00% 100.000 15-AIR QUALITY IMPROVEMENT F 175 0 5% 32,226 38 6% 0 00% 0 0 0% 32,700 16-GAS TAX FUND 116,782 33 0% 136,724 52 8% 0 00% 0 00% 1 353,459 17- TRAFFIC SAFETY FUND 7,133 8 3% 20,771 24 3% 0 0,0%1 0 00% C5,650 19-FACILITIES FUND 0 0.0% 0 0 0% 0 00% 0 00% J 20-MEASURE"I"FUND 3,336 2 4% 4,672 4 B°Ar 0 00% 0 00% 97,342 21-WASTE WATER DISPOSAL FUN 357,443 21 7% 719.581 43.7% 0 00% 0 00% 1.545,615 22-CDBG FUND 0 0.0% 0 0.0% 0 00% 0 00% 142,781 26-LNDSCP&LGTG ASSESSMENT 3,745 26.6% 5,225 37.1% 0 00% 0 00%j 1 14.065 - .4-CAPITAL PROJECT-BIKE LANE 0 9 0°b 0 0.G% 0 0 J% 0 0 0°6 0 ,1�ITAL IMPROVEMENTS-STI 115,994 -1.0% Z50,090 53.7% 0 13% 0 0 G% 352,206 :17-CAP PRJ_BARTONICOLTON 9R 0 O 096 _'8.000 21% 0 00% 9 O G% '350,114 TOTAL OTHER CITY FUNDS 5 :03,635 I I6.8% 1,447,843 14.6% 0 00% 0 00% 1,182,061 32 CAPITAL PRp1ECT5 fl}yp i ?01,730 _d i% 742 552 36,j% �1 �s'4 7 -)G%l ' 013,833 '3 l B'i;EP.VlCE E�v'4D :,l i6.2831 4 "o t,'63,LJ8 y°G ] °6 ] ]1'°6 3 363, a5 i I -�l 'JC-tiiE%GU`i�,rF1,^l =3.'�h31 j";l 16.1671 -4°561 }4 ,"5k J'161 [ 16,01U rjrAL t-RA H-NDS :.'s91.3Ifi1 J-",I 3.321,9171 t 4 4 i! 11'� )+ 1%1 j.:03.338 r 1.1d it- ALL -$;;WS .199.1521 a';I J.1F4 0864_ J f)Ni ) v°!=_ 3 799t13 -rpenditure5 FYTD Juarter FY 2010-11 O CALIFORNIA City and CRA of Grand Terrace Financial Report by FY Quarter � FY 2009-10 June 30, 2010 0 CALIFORNIA City and CRA of Grand Terrace � FY 2009-10 REVENUE by FY QUARTER June 30, 2010 City and CRA of Grand Terrace Budget: FY 2009-10 Revenue Report for Twelve Months July 1, 2009 through June 30,2010 Fiscal Year to[late Revenue Analysis by Quarter REVENUES Actual Actual Adutl Act" Sept 30,09 % Dew 31,09 % Afar.31.10 % Jun.30,10 % Revhed FY-to-deft 2m FY-to-daft sm FY-to-dsft ?m FY-0-dsa Im Budget Revartua Reranue Revaew Remko FY 2009.10 Revenue PROPERTY TAXES 2.6191 0.2% 114,396 7.7% 712,704 48.1%1 1,465,170 98.9%1 1 1 481 f""' LICENSES AND PERMITS 7.5421 1.2% 97.1 14.8% 248,079 37.9% 874,745 87.8% 6$4 ti SALES TAX/SALES TAX IN LIEU 87.034 9.4% 183.665 19.7% 394.292 42.4% 779 616 83.8% 930,843 INTERGOVERNMENTAL T 111 8.2% 41,204 30.0% 76,473 66.7% 119 140 86.7% 137.33 CHARGES FOR SERVICES 18 308 14A% 24,891 23.3% 93,900 88.3% 128 465 119.2% 106,100 PLANNING FEES 2 978 11.7% 15,078 85.8`/0 19,225 84.0% 22 178 96.8% 22,900 RECREATION FEES 2.739 24.2% 2 981 26.4% 3 325 28.4% 3 326 29.4% 1 1300 CHILD CARE FEES 224 954 21.6% 481 672 43.3% 688,339 66.1% 959,872 92.1% 1 1.042.017 PARK FEES 740 29.6% 1,080 42.0%1 8 279 331.2% 10,147 406.9% 1 2,300 FINES&FORFEITURES 6 724 21.9% 12,021 39.1% 19.461 63.3% 26,816 86.2% 1 30,730 USE OF MONEY&PROPERTY 14,939 18.2% 21,911 22.2% 26 624 27.0%1 54,639 38.5% 1 98,500 MISCELLANEOUS REVENUE 138 0.6% 332 1.4% 2,814 I0.9% $278 22.0% 24.000 TRANSFERS 130,000 19.8% 300,000 39.7% 430,000 59.5% 600,000 79.4% 753.723 TOTAL 10- GENERAL FUND 322,822 9.9% 1.286.135 23.9% 2.743.318 81.8% 4 747,083 89.6% 5,298,276 11-STREET FUND 1.4061 0.1% 2,463 0.2% 2,498 0.2% 88,147 8.8% 1,003,082 12 STORM DRAIN FUND 134 0.4% 224 0.7% 228 0.7% 3 864 12.2°rb 31 800 13..PARK FUND 486 3.5% 731 5.4% 756 5.4% 1.73 12.4% 13,965 14-SLESF(AB3229 COPS) 8 0.0% P. 0.0% 67,740 22.7% 286,026 96.8% 298,418 15-AIR QUALITY IMPROVEMENT FUND 106 0.7% 3,824 24.3% 7,047 44.8% 14 1BO 90.1% 18 16-GAS TAX FUND 25.037 7.0% 54,789 15.4% 54,771 15.4%1 458,016 128.4% 356, 1 17-TRAFFIC SAFETY FUND 7.216 10.9% 28 646 38.8% 166,833 251.3%1 216.526 326.1% 66,400 19-FACILITIES FUND 370 1.6% 446 1.9%1 648 2.8% 3,121 13.6% 23,000 20-MEASURE"I"FUND 10,86 13% 43,687 9.8%1 83,430 17.4% 138.824 28.8% 480 800 21-WASTE WATER DISPOSAL FUND Z42 686 18.6% 686.423 42.2%1 948,190 61.1% 1,833,651 98.8% 1 552 800 26-LNDSCP&LGTG ASSESSMENT DIST 0 0.0% 8 88B 39.0%1 6,366 44.4% 11,887 81.5%11 14,338 44-CAPITAL PROJECT-BIKE LANE 0 0.0% 143,385 72.7% 143.388 72.7% 148,385 72.7% 200.000 46 CAPITAL IMPROVEMENTS-STREETS 2 0.0% 0 0.0% 0 0.0% 71,783 21.9%11 327,500 47 CAP.PRJ.BARTON/COLTON BRIDGEt22,038 0.0% 60,117 10.2% 148,899 24.9% 211.667 38.9% 589,080 TOTAL.OTHER CITY FUNDS 5.8% 1,000,312 20.1% 1,630,785 32.8% 3,154,300 63.4% 4,973,355 32.CAPITAL PROJECTS FUND 1.7% 31,74 3.4% 47.553 5.0% 400 993 42.4% 946.000 33-DEBT SERVICE FUND 0.2% 2393745 39.6% 3 SW 009 54.7% 6,971,913 106.5% B 54T 487 34-LOW INCOME HOUSING FUND 1.4% 668194 42.3% 763 817 48.4% 1.609 197 101.9% 1 579 599 TOTAL CRA FUNDS 0.6% 3.293.8811 36.3% 4,394.379 48.4% 8.982,103 99.0% 9,073,086 Grand Total-ALL FUNDS 583,322 4.5% 8.560.128 28.7%1 8,768,4791 45.3% 16,883,488 37.3% 19,344,717 `Dates Revenues include Transfers-In Revenues by EFY Quarter actual ='Y 2009-10 0 0 City and CRA of Grand Terrace Budget:FY 2009-10 Revenue Report for Twelve Months July 1, 2009 through June 30,2010 Fiscal Year to Date Revenue Analysis by Quarter Fiscal Year Revenue by Type Actual Jun.306 10 8mpet% Revised Property Other Intergover Licenses Charge User Impact! Fines& Interest TSF Total FY-ro-deft tent BudyW Trees Taxes nmental Permits For Fee Cap Forhltures &Use Other Revmm FY20MIO nncrordont Services Impry Rw*wm To-GENERA1.FUND 4,747,085 89.a%l 8,290,278 1.406,170 779,016 119,140 574,748 1,121,98$ 0 0 26,515 84,839 806,276 4,747.085 11-STREET FUND 58.147 5.8%1 1,003,089 53,904 4 153 58147 12 STORM DRAIN FUND 9 804 122% 31 800 3,503 301 S 81% 13-PARK FUND 1,733 12.4% 13 9ti8 so 1.297 1,733 14-SLE5F JAB3229 COPS 286 026 95.8% 298 418 102,840 1 183,185 288 028 15-AIR QUALITY IMPROVEMENT FUND 14 180 90.4% 15,730 1 13 839 341 14 180 16.GAS TAX FUND 458 010 1284% 388 70$ 323 214 00 134,743 488 018 17-TRAFFIC SAFETY FUND 216,820 3281% 06.400 0,233 207,197 90 216,526 19-FACILITIES FUND 9 121 13.8% 23,000 2 004 1 0$? 3,121 20-MEA5URE"I"FUNL) 138 524 28.8% 480$00 138,111 413 138,824 21-WASTE WATER DISPOSAL FUND 1,833,6111 98.8% 1 882 800 0 1.016.020 300 18,331 1,$33 O81 26 LNDSCP&LGTG ASSESSMENT DIST l l 087 815% 14 338 11.028 88 11,618 44 CAPITAL PROJECT BIKL LANE 145,388 727% 200 000 98.187 47,198 148,385 46-CAPITAL IMPROVF MENTS-STREETS 71783 21.9% 327 800 71,783 71,783 47 CAP PRJ BARTON COLTON BRIDGE 211"6-871 35.9% 889 080 144.597 07,080 211.867 TOTAL OTHER CITY FUNDS 3,184,3001 53.4% 4.973.358 0 472,963 386,890 0 0 1.616.020 80,367 207,107 23.008 803,988 3,184,299 32-CAKI AL PROJECTS FUND 400,993 424% 948 0D0 $0 993 3$0 000 400,993 33-DEBT SERVICE FUND 0 971 913 108.5% 0 84T 487 13,314,841 48.298 008 7T9 8 971 el3 34-LOW INCOME HOUSING FUND I,t109,197 1019% 1,67060 1,479,178 7.222 22.798 l 809 198 rOTAL CRA FUNDS 8.082.103 90.0% 9.073.066 7.894.019 0 0 D 0 0 0 0 100,813 081.872 8,082,104 Grand Total-ALL FUNDS 18,883,488 77 3% 19,344,717 9,359,1801 1.262.501 487.11MI 1174.7451 1,121,9851 !1818,0201 00,987 233,712 184,260 2.000,816 10.883.486 55.43% 7.42% 2.89% 3.409E 6.65% 8.98% 0.36% 1.38% 1.09% 12.38% 1DO.OD% Notes.Revenues includa Translem-In Revenues FY Actual FY 2009-10 O CALIFORNIA City and CRA of Grand Terrace FY 2009-10 O Expenditures by FY QUARTER June 30, 2010 Actual FY 2009-10 Expenditure Report by Category - Fiscal Year 100%of FY Completed CATEGORY July 1, 2009 through June 30,2010 FYT0 FYTD TOTAL satar:e. Niaint Capital By Category Expendi. Encumb- FYTD & cantracts & tares rances Expend. Benefits & Other Encumb. Operatimms JIQ CITY COUNCIL 55,901 0 55,901 43 907 11,994 0 120 CITY MANAGER 272,398 0 272,398 262.397 10,001 0 125 CITY C RK 192,677 0 192,677 157,481 35 196 0 1AQ FINANCE 323,253 0 323,253 246,236 74.837 2 180 1160 CITY ATTORNEY 85,219 0 35.219 0 85,219 0 17Z BUILDINGANQ, SAFETY 115,064 0 113,054 63.911 51,143 (1 17 P 105,570 0 105,870 , 48,038 57,532 0 18U CUM M Q N ITY SERMES 401,845 0 401,845 252,642 . 130,661 18.542 185 RENTAL INSPECTION PROG 54,845 0 54,845 50,662 4.283 0 190 N Q,N- ,R 778.860 0 778 860 0 352,650 426,210 370 COMMUNITY V L M NT P 275,049 A 275,049 218.120 56.560 369 380 GIS(GEOGRAPHIC INE-ORMATION 98,559 0 98,559 78 805 19,754 0 410 LAW ENF R M 1,690,035 0 1,690,038 0 1,687,078 2.960 440 CHILDAR RVI 866,861 0 866 861 766,890 99,404 567 450 PARK M&ITENANCE 139.4541 0 139,454 57,460 81,994 0 631 STORM R I . I NT ,N 5,400 0 5.400 0 5.400 0 PLANNING CQMeal ION 2,417 0 2,417 2,350 67 0 604 1HISTORICAL/CULTURALCOM1MITTI 327 0 327 0 327 0 805 SENIOR CITIZENS PROGRAM 43,517 0 43,517 18,406 25i 1 l 1 0 §OL&MERgENCY OPERATIONS CENTER 24.547 0 24.547 0 6,868 17,679 C ALLOCAT 571,288) Q (571,288) 01 0 (571,288 TOTAL GENERAL FUND 4,960,500 0 4,960,500 2,267,20S 2,796,076 (102,781) 100.0% 0.0% 100.0% 45.7% 56.4% -2.1% 11 -STREET FUND 7,826 0 7,826 0 0 7,826 12-STORM DRAIN FUND 14,044 0 14 044 0 10 580 3 464 13-PARK FUND 47 214 0 47,214 0 0 47,214 14-SLESF(AB3229 COPS) 286,025 0 286,025 0 285,525 500 15-AIR QUALITY IMPROVEMENT FUND 338 0 338 0 297 41 16-GAS TAX FUND 421,249 0 421 249 163,236 226 954 31 059 17-TRAFFIC SAFETY FUND 147,070 0 147,070 8,006 82 226- 56,838 19-FACILITIES FUND 0 0 0 0 0 0 20-MEASURE"I"FUND 113 774 0 113 774 0 790 112 984 21 -WASTE WATER DISPOSAL FUND 1,677,432 0 11677,432 85 455 1.334.523 257,454 26-LNDSCP 8 LGTG ASSESSMENT DIST 7,479 0 7,479 0 6.578 901 44-CAPITAL PROJECT-BIKE LANE 103,360 0 103,360 0 42,434 60 926 46-CAPITAL IMPROVEMENTS-STREETS 74,439 0 74,439 0 14 T56 59,683 47-CAP PRJ. BARTONICOLTON BRIDGE 139 114 0 139 114 0 86,433 52 681 TOTAL OTHER CITY FUNDS 3,039,364 0 3,039,364 256,697 2,091,096 691,571 100.0% 0.0% 100.0% 8.4% 68.8% 22.8% 32-CAPITAL PROJECTS FUND 856 513 0 856,513 308,747 176,265 371,501 33-DEBT SERVICE FUND 7 024 183 0 7.024.183 0 113,275 6 910 908 34-LCW NCOME HOUSING F'jFID ! 330 352 �] 1,930,552 205,1 59,805 l 665 842 TOTAL CRA FUNDS 9,811,248 3 9,311,248 513.8S2 349,34S 9,948,051 100.0% 0.0% *r 00.0% 5.2% 3.6% 91.2% :wand Total-ALL FUNDS I 1.7 811,1121 tj7,811.112L 1047,7941 5,�26,517 3,536,8s1 �30.0%1 00/4 _ oa.a°rod 17.1g �9.4°16 53.5% .:tpenditures by Cstc,gory Actual Y 7.009-10 City and CRA of Grand Terrace FY 2009-10 Expenditure Report for Twelve(12) Months July 1. 2009 through June 30, 2010 Fiscal Year to Date Expenditure Analysis by Quarter EXPENDITURES AND ENCUMBRANCES Sep[30,09 46 Dec.31,09 16 1 Man 31, 10 % Jun.30, 10 Revised FY-to-date 25% FY-ta-date FY-todete 75% FY-to-date Budget Expend. Expend Expend. Eirpend, FY 2009-10 Encumb, Encumb. Encumb. Encumb 110 CITY COUNCIL 22,753 54.20,6 30,806 73 3% 36,896 87 8% 55,901 133.1% 42,000 120 CITY MANAGER 177.715 59 3-.6 105,134 35.1% 180,103 60.1% 272.398 910% 299,455 125 CITY CLERK 62,656 32 2% 108,307 55 6% 138.571 71 2% 192,677 99 0% 194,691 140 FINANCE 88 389 25.7% 188 329 54.6% 241,719 70.1% 323,253 93 8% 344,734 160 CITY ATTORNEY 16,324 22.1% 34.914 47 2% 59.217 80 0% 85,219 1151% 74,000 172 BUILDING AND SAFETY 45,7741 36.8% 75,5451 50.8% 96,590 77.7% 115,084 92.6% 124,310 175 PUBLIC WORKS 73,7181 61.9% 91,557 769% 79,293 656% 105,570 88.7% 119.060 180 COMMUNITY SERVICES 184,663 35.3% 338,666 64.7% 328,757 52.8% , 401,845 76.8% 1 523,535 185 RENTAL INSPECTION FROG 14,078 23.7% 27,537 46 3% 39,267 661% 94,845 92 3% 59.430 190 NON-DEPARTMENTAL 457,257 60.4% 496,319 65,6% 490,987 64.9% 778,860 102.9% 757,073 370 COMMUNITY DEVELOPMENT 67301 240%1 131,365 469%1 209.922 750% 275,049 98.3% 279,917 380 GIS GEOGRAPHIC INFORMAI 17,895 15 7% 48,743 45 6% 68,638 64.2% 98,589 92.2% 106,940 410 LAW ENFORCEMENT 1.593,592 925% 1,623.993 94.2% 1,649,265 95.7% 1,690,0351 980% 1,723,731 440 CHILD CARE SERVICES 235.574 27 3% 451,652 52 4% 646,860 75.0% 866,8611 100.5% 862,305 450 PARK MAINTENANCE 59,483 28.9% 118.366 57 5% 101.088 49-1% 139.454 67.7% 1 205,980 631 STORM DRAIN MAINTENANC 4,500 100.0% 5,400 1200% 5,400 1200% 5,400 1200% 4,600 801 PLANNING COMMISSION 356 9.0% 667 16.9%1 1.567 39.7% 2,417 61.2% 3,950 804 HISTORICAL/CULTURAL COMI 0 0,0% 291 24.3% 291 24.3% 327 27 3% 1 200 805 SENIOR CITIZENS PROGRAM 6,366 10 9% 15.766 27.0% 23,969 41.1% 43,517 74 6% 58,350 808 EMERGENCY OPERATIONS CE 1,686 4.8% 3,023 8.7% 4,433 12.8% 24.547 70 8% 34,679 '999 COST ALLOCA i ION 142.038 25 0% 284.076 50.0% 426.114 75 0% 571.288 100 6% 568,151 TOTAL GENERAL FUND 2,9W,211 569%1 3,612,3041 68.8% 3,976.709 75.7% 4,960,500 94.5% 1 5,251,689 11-STREET FUND 0 0.0% 3,214 13%1 3,214 1 3% 7,826 3 2% 247,500 12-STORM DRAIN FUND 10,424 84.9% 10,848 58 4% 11,272 916%1 14,044 114.4% 12,276 13-PARK FUND 44 851 33 2% 49,118 35 4% 49.132 36 4% 47.2141 35.0% 134,994 14-SLESF A83229 COPS 285.769 95 8% 285,894 35 8% 286,019 95 8% 286.025 95 8% 298,418 15-AIR QUAUTY IMPROVEMENT V 9,34 0.6% 488 1 2% 729 1 8% 338 0 8% _ 41,100 16-GAS TAX FUND 89.8091 22.2% 135,000 33 3% 291,292 719% 421,249 103.9% 405,315 17-TRAFFIC SAFETY FUND 30 580 56.9% 33,029 514%1 21.279 39 6% 147,070 273.6% 53,750 19-FACILITIES FUND 2.204 3.5% 4,408 6.9%1 6.612 10 4% 0 0.0% 63,814 20-MEASURE"I"FUND 5,489 1.3% 54,962 132%1 116,600 28.1% 113,774 27 4% 414,955 21-WASTE WATER DISPOSAL FUN 102,938 5.4-A 476,425 24.8% 836,139 43.5% 1,677.432 87 4% 1,919 983 26-LNDSCP&LGTG ASSESSMENT 4,323 30.7% 6,048 43 0% 7,084 50.4% 7,479 53 2% 14,06$ 44-CAPITAL PROTECT-BIKE LANE 60,926 30.5% 103.305 51.7% I03.360 51 7% 103,360 517% 200,000 46-CAPITAL IMPROVEMENTS-STO 59,683 9.7% 75,877 12.3% 69,104 11 L% 74.439 12.1% 617,500 47-CAPYRT.BARTON/COLTON BRI 15,609 14,8% 85,356 14 7% 130,308 22 5% 139,114 24 j%j 580.000 TOTAL OTHER CITY FUNDS ?82,838 15.6% 1,323,972 26 5% 1,93,2,1441 18 6% 3,039,364 60 7% 5,003,670 32-CAPITAL PROTECTS FUND 1278,777 16.2% 656,699 28.1%l 871.839 505%1 8,96,513 49.d% 1,725 350 33 -DEBT SERVICE FUND 4.532 978 30,1% 1,889.816 33 a°6 2,170,528 8.4 7,024,183 124 1%1 5.658,773 l LOW INCOME HOU'ING FI V 114,424 5 3% 104,079 "-4 8% 1 C75,440 94204 1.930,652 97 0% 1,989 674 TOTAL CRAFUF40S f 4,926,179 32n-16 3,040.i941 124% 4,117.,307 �0 5%1 9,811,248 104-,%l 9,373.797 ind*Total-ALL r iJNGS 3 S97 1.28 '4 �"4- -975 870 4 6% -n ti7K.Fn0 is '.% 17 811,112 y -01", .1 629,156 penditures 5y ,tarter FY 2009-10