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06/25/2019CITY OF GRAND TERRACE CITY COUNCIL AND CITY COUNCIL AS THE SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY AND HOUSING AUTHORITY AGENDA ● JUNE 25, 2019 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 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 ca lled 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 d uring normal business hours. In addition, such documents will be posted on the Cit y’s website at www.grandterrace-ca.gov. CALL TO ORDER Convene City Council, City Council as the Successor Agency to the Comm unity Redevelopment Agency and Housing Authority Invocation Pledge of Allegiance Roll Call Attendee Name Present Absent Late Arrived Mayor Darcy McNaboe    Mayor Pro Tem Doug Wilson    Council Member Sylvia Robles    Council Member Bill Hussey    Council Member Jeff Allen    A. SPECIAL PRESENTATIONS Commendation for Athletic Accomplishment - Alycia Flores Certificates of Acknowledgment - 2019 Community Days Committee Agenda Grand Terrace City Council, Successor Agency and Housing Authority June 25, 2019 City of Grand Terrace Page 2 B. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City 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. 1. Waive Full Reading of Ordinances on Agenda DEPARTMENT: CITY CLERK 2. Approval of Minutes – Regular Meeting – 06/11/2019 DEPARTMENT: CITY CLERK 3. Attachment to Minutes – Regular Meeting - 06/11/2019 DEPARTMENT: CITY CLERK 4. Approval of Minutes – Special Meeting Workshop – 06/12/2019 DEPARTMENT: CITY CLERK 5. Attachment to Minutes – Special Meeting Workshop - 06/12/2019 DEPARTMENT: CITY CLERK C. 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 comment or may request a matter be agendized for a future meeting. D. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Council Member Bill Hussey Council Member Sylvia Robles Mayor Pro Tem Doug Wilson Mayor Darcy McNaboe E. PUBLIC HEARINGS - NONE Agenda Grand Terrace City Council, Successor Agency and Housing Authority June 25, 2019 City of Grand Terrace Page 3 F. UNFINISHED BUSINESS 6. Fiscal Year 2019-2020 Budget Revisions Including Budget Deliberations on Paperless Agendas, Additional Traffic Officer, Approval of Use of Rule 2 0A Funds, Reinstatement of Merit Increases, and Use of the Child Care Fund’s Fund Balance RECOMMENDATION: (1) Approve Resolution 2019-XX adopting Fiscal Year 2019-2020 Budget Revisions as presented to the City Council on May 28, 2019; said budget is struc turally balanced, not requiring the use of fund balance. (2) Continue budget deliberations on the following items; after which, if approved, incorporate into the FY2019-20 budget: a) Review of the use of Microsoft Surfaces or iPads (paperless age ndas) for City Council showing one-time funds and subsequent years’ savings; if approved, there is a one-time cost of $14,500 and an annual maintenance cost of $2,875 increasing General Fund expenditures by $14,500 in FY2019 -20; b) Review additional public services of one Traffic Officer, one day a week, estimated at an annual cost of $24,000, increasing General Fund expenditures by $24,000 in FY2019-20; c) Review of the Proposed Memorandum of Understanding with the City of West Hollywood for Rule 20A funds (this will provide additional revenue of $110,000 to the General Fund; if approved, authorize the City Manager to execute the agreement with the City of West Hollywood; d) Review the reinstatement of merit increases to affected employees; if approved, this will increase General Fund expenditures by $31,611 in FY2019 -20. (3) Approve the use of the Child Care Fund’s fund balance in FY2019-20 to pay for its’ former employees share of unfunded accrued liabiliti es ($150,000) and authorize the transfer of the remaining fund balance ($84,450) to the General fund to be set aside for future liabilities. DEPARTMENT: FINANCE 7. Adoption of an Amended Resolution Setting a Public Hearing Relating to Rate Increases for Solid Waste Collection, Recycling and Disposal Services, Street Sweeping Services, and Special Services RECOMMENDATION: Adopt a Resolution rescinding the previously adopted resolution setting forth a public hearing date of July 9, 2019 and setting the ne w date of August 13, 2019 to hear matters pertaining to proposed rate increases for solid waste collection, recycling and disposal services, street sweeping services, and special services DEPARTMENT: CITY MANAGER Agenda Grand Terrace City Council, Successor Agency and Housing Authority June 25, 2019 City of Grand Terrace Page 4 G. NEW BUSINESS 8. City Council Policies and Procedures RECOMMENDATION: Consider Possible Revisions to City Council Policies and Procedures and Additions of New Topics for Inclusion DEPARTMENT: CITY ATTORNEY 9. June-2019 Award of Community Benefit Funds in the Amount of $2,000 RECOMMENDATION: Approve the Community Benefit Fund (CBF) grant application from the Friends of the Grand Terrace Library and award the grant amount of $2,000 for their 2019 Summer Reading Program. DEPARTMENT: FINANCE 10. Treasurer's Report as of March 31, 2019 RECOMMENDATION: Receive and file the Treasurer's Report for the period ending March 31, 2018. DEPARTMENT: FINANCE 11. Approval of Annual Appropriations Limit for Fiscal Year 2019-20 RECOMMENDATION: (1) Approve the selection of the Change in Per Capita Personal Income of 3.85% as the Price Factor for the Fiscal Year 2019-120 Appropriations Limit Calculation; (2) Approve the selection of the Change in County of San Bernardino Population of 0.90% as the Population Change Factor for the Fiscal Year 2019 -20 Appropriations Limit Calculation; and, (3) Adopt a Resolution Establishing Appropriations Limit of $14,637,091 for the City of Grand Terrace for Fiscal Year 2019-20. DEPARTMENT: FINANCE 12. Approve Professional Services Agreement for the Grant Processing of the Highway Safety Improvement Program Grant Cycle 9 in an Amount Not to Exceed $32,415 RECOMMENDATION: 1. Approve a Professional Services Agreement between the City of Grand Terrace and Associates for Processing Obligation, E-76 and other needed documents for the HSIP Grant Program, in an amount not to exceed $32,415; and 2. Authorize the City Manager to Execute the aforementioned Agreement, subject to City Attorney approval as to form. DEPARTMENT: PUBLIC WORKS Agenda Grand Terrace City Council, Successor Agency and Housing Authority June 25, 2019 City of Grand Terrace Page 5 H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL Pursuant to City Council policy set forth in the 2030 Vision and 2014 ‐2020 Strategic Plan, if a City Council Member is interested in a task or project that will require more than one hour of staff time to complete, the item will be agendized to ask the City Council if time should be spent on preparing a report on the proposed item. In accordance with this policy, this is the opportunity for City Council Members to request that an item be placed on a future agenda and authorize staff to prepare an agenda report. To ensure compliance with the Brown Act, the request shall be submitted to the City Manager at least one week in advance of the m eeting so that the topic can be included on the agenda under this section. In order for any listed item to be placed on a future agenda, the City Council must act by formal motion (i.e., requires a motion and a second) to direct the City Manager to place the item on a future agenda. Pursuant to the requirements of the Brown Act, no other items may be considered other than those listed below. 1. Grant Request through Assemblymember Reyes Office for ALPR Cameras and Neighborhood Watch Signs Requested by: Council Member Bill Hussey I. CITY MANAGER COMMUNICATIONS J. CLOSED SESSION - NONE K. ADJOURN The Next Regular City Council Meeting will be held on Tuesday, July 9, 2019 at 6:00 p.m. Any request to have an item placed on a future agenda must be made in writ ing and submitted to the City Clerk’s office and the request will be processed in accordance with Council Procedures. CITY OF GRAND TERRACE CITY COUNCIL AND CITY COUNCIL AS THE SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY AND HOUSING AUTHORITY MINUTES ● JUNE 11, 2019 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 CALL TO ORDER Mayor Darcy McNaboe convened the Regular Meeting of the City Council and City Council as the Successor Agency to the Community Redevelopment Agency at 6:00 p.m. INVOCATION The Invocation was given by Father Thomas Hernandez of St. Andrew Orthodox Church. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Council Member Jeff Allen. Attendee Name Title Status Arrived Darcy McNaboe Mayor Present Doug Wilson Mayor Pro Tem Present Sylvia Robles Council Member Present Bill Hussey Council Member Present Jeff Allen Council Member Present A. SPECIAL PRESENTATIONS - NONE B. CONSENT CALENDAR RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Bill Hussey, Council Member AYES: McNaboe, Wilson, Robles, Hussey, Allen 1. Waive Full Reading of Ordinances on Agenda B.2 Packet Pg. 6 Minutes Acceptance: Minutes of Jun 11, 2019 6:00 PM (Consent Calendar) Minutes Grand Terrace City Council, Successor Agency and Housing Authority June 11, 2019 City of Grand Terrace Page 2 2. Approval of Minutes – Regular Meeting – 05/28/2019 APPROVE THE REGULAR MEETING MINUTES OF MAY 28, 2019 3. Attachments to Minutes - 05/28/2019 APPROVE THE ATTACHMENTS TO THE REGULAR MEETING MINUTES OF MAY 28, 2019 4. Approval of Minutes – Special Meeting – 06/05/2019 APPROVE THE SPECIAL MEETING MINUTES OF JUNE 5, 2019 5. Attachment to Minutes - 06/05/2019 – SP APPROVE THE ATTACHMENTS TO THE SPECIAL MEETING MINUTES OF JUNE 5, 2019 6. Planning Commission, Historical & Cultural Activities Committee, and Parks & Recreation Advisory Committee Meeting Minutes RECEIVE AND FILE. 7. Amendment No. 1 to Omnitrans Bus Shelter Agreement to Incorporate New Advertising Policy 1. APPROVE AMENDMENT NO. 1 TO THE CITY'S BUS SHELTER AGREEMENT WITH OMNITRANS; AND 2. AUTHORIZE THE CITY M ANAGER TO EXECUTE AMENDMENT NO. 1, SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM. C. PUBLIC COMMENT Nathan Lopez, San Bernardino County Fire District reminded the City Council of the upcoming San Bernardino County Fire OPS 101 Training to be held on Wednesday, August 7, 2019 which will provide the City Council with a broader understanding what it takes to be a firefighter. In addition to that, it gives the District an opportunity to show the City Officials and leaders the services that are provided. D. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Council Member Jeff Allen attended Community Day at Richard Rollins Park and was pleased with the turn out. He thanked staff and all of the volunteers in the community. Council Member Allen also attended the California Joint Powers Insurance Authority’s annual training academy for newly elected council members and mayors. He learned about how the City is protected and ways that the City can stay b etter protected, as well as how to be a better functioning Council. B.2 Packet Pg. 7 Minutes Acceptance: Minutes of Jun 11, 2019 6:00 PM (Consent Calendar) Minutes Grand Terrace City Council, Successor Agency and Housing Authority June 11, 2019 City of Grand Terrace Page 3 Council Member Bill Hussey Council Member Bill Hussey attended Community Days and wanted to thank the volunteers and staff who helped make it possible. Council Member Hussey announced the Jack’s Memorial 5K run scheduled for June 15, 2019 at Cooley Ranch Elementary School beginning at 8:00 a.m. It is a memorial run for law enforcement and their families to help provide scholarships and assistance to law enforcement families. Council Member Robles expressed her condolences to the family of Grand Terrace Resident, Kent Taylor who recently passed away. Council Member Sylvia Robles Council Member Sylvia Robles attended the City’s Budget in the Park workshop and Community Days. She sincerely expressed her appreciation to staff and the volunteers for striking a homerun with the event. Council Member Robles expressed her condolences to the fam ily of Grand Terrace Resident, Kent Taylor who recently passed away. Mayor Pro Tem Doug Wilson Mayor Pro Tem Doug Wilson attended Community Days and was very happy with the weather and the time of day the event was put on. He thanked the staff for their t ime and the sheriff’s department for attending. Mayor Pro Tem Wilson was saddened to hear about the lo ss of Grand Terrace Resident, Kent Taylor and suggested if anyone can reach out to someone who is in a dark place and provide comfort, please do. Mayor Darcy McNaboe Mayor Darcy McNaboe echoed all of the positive statements made by her colleagues regarding Community Days, however she also wanted to thank all of the sponsors. On June 5, 2019, Mayor McNaboe attended the Omnitrans Board Meeting and discussed the following: · Receive and File Summary Information Regarding the March 14, 2019 Board of Directors Workshop · Receive and File Overview on Access ADA Paratransit Services · Authorized Award of Contract for Maintenance of the Compressed Natural Gas Fueling Facilities at East Valley and West Valley · Installation of new Chair, Mayor Pro Tem, David Avila for the City of Yucaipa and Vice-Chair Mayor John Dutrey for the City of Montclair B.2 Packet Pg. 8 Minutes Acceptance: Minutes of Jun 11, 2019 6:00 PM (Consent Calendar) Minutes Grand Terrace City Council, Successor Agency and Housing Authority June 11, 2019 City of Grand Terrace Page 4 On June 5, 2019, Mayor McNaboe attended the San Bernardino County Tr ansportation Authority (SBCTA) Board Meeting and discussed the following: · Approved a contract extension with the Executive Director, Raymond Wolfe · Approved the Southern California Regional Rail Authority Preliminary Budget Request for Fiscal Year 2019/2020 · Authorized the Executive Director to execute the Project Specific Maintenance Agreement for a drainage system between SBCTA and Caltrans · Reviewed the testimony from the August and September 2018 Unmet Transit Needs Public Hearings and adopted Resolutions for those Unmet Needs · Adopted a Resolution authorizing the allocation of local transportatio n funds and state transit agency assistant funds for FY 2019/2020 · Received nominating committee recommendations for Board President and Vice - President. Conducted elections and Mayor Darcy McNaboe was elected President for a Full Term and Mayor Frank Nava rro for the City of Colton was elected Vice-President · Provided direction regarding member jurisdiction agency participation in the Right-of-Way Acquisition Incentive Payment Program for the I-10 Corridor Project · Adopted the County Transportation Authority Fiscal Year 2019/2020 Budget and Action Plan · Authorized Finalization and Execution of a Sole Source agreement with Trapeze Software Group, Inc. · Awarded a Construction Contract for the Redlands Passenger Rail Project Rail Storage & Maintenance Facility to Granite Construction Company Mayor McNaboe saw an update from Supervisor Dawn Rowe that the Board of Supervisor’s reconsidered the FP-5 Annexation tax increase and decided to allow the residents and taxpayers the right to vote on the increase. The Board of Supervisors will look at other ways of funding the costs during that timeframe. Mayor McNaboe encouraged the City Council to attend the California Joint Powers Insurance Authority Risk Management Conference scheduled in October 2019. E. PUBLIC HEARINGS - NONE F. UNFINISHED BUSINESS 8. Continue Deliberations for and Adopt FY2019-20 Proposed Budget Adjustments Cynthia Fortune, Assistant City Manager and G. Harold Duffey, City Manager gave the PowerPoint presentation for this item. B.2 Packet Pg. 9 Minutes Acceptance: Minutes of Jun 11, 2019 6:00 PM (Consent Calendar) Minutes Grand Terrace City Council, Successor Agency and Housing Authority June 11, 2019 City of Grand Terrace Page 5 Council Member Robles would like staff to return back to City Council with a current list summarizing staffing level. Mayor Pro Tem Wilson asked if staff knows for a fact that the City will not need some Rule 20A underground funds to facilitate future projects. City Manager Duffey explained that staff wanted to show the City Council that it wou ld need every dollar it has for future projects. Council Member Allen asked how much the City is allotted for Rule 20A funds. City Manager Duffey stated approximately $25,000.00 annually. Assistant City Manager Fortune provided the City Council with an annual estimate of $15,000.00 for I-Pads to serve as a City Council agenda packet and an approximate cost of $24,000.00 annually for additional traffic enforcement. Council Member Allen requested clarification on a software application request in the budget and asked if the $12,500.00 was one-time fee or annual fee. Assistant City Manager stated it was an annual fee. The software provides the ability to track up-to-date information on the City’s unfunded accrued liability. The software also provides the ability to project current cost of living, merit increases, what the actual total cost is overall plus the cost on pensions and other post-employment benefits. Assistant City Manager Fortune currently provides the information to City Council as an estimate only. She must base it on what CalPERS provides, which is information that is two years old. Council Member Robles asked staff to show her where the annual $500,000.00 the City will receive from the bond defeasance is in the budget. Assistant City Manager explained that the City will receive a $210,000.00 increase for 2019-20 budget for the bond defeasance approximately $107,000.00 is for salaries, benefits and contracts. She also confirmed that in 2021-22 and 2022-23 the City will see an increase in funding for additional deputies. Mayor McNaboe asked when the City receives the full $500,000.00 annually from the bond defeasance beginning in 2021-22, where is that projected to be spent. Assistant City Manager stated for expenditures; the following assumptions were used: a. Cost of Living Adjustments (COLA) are implemented for employees; b. Merit increases are provided for qualified employees; c. A 4% increase is provided for Law Enforcement services (approximately B.2 Packet Pg. 10 Minutes Acceptance: Minutes of Jun 11, 2019 6:00 PM (Consent Calendar) Minutes Grand Terrace City Council, Successor Agency and Housing Authority June 11, 2019 City of Grand Terrace Page 6 $80,000 annually); d. A 1% increase is provided for professional - contractual services; and e. A 5% increase for future unfunded accrued liabilities (UAL) (approximately $20,000); f. Part of the Child Care Fund’s UAL of approximately $65,000 is borne by the General Fund in FY2020-21. By the following fiscal year (FY2021-22), the full cost of their UAL of $150,000 will be in the General Fund’s expense budget; and g. Payment plans for General Fund’s liabilities. Assistant City Manager Fortune also stated that with the additional $500,000.00 revenue, the City is netting a positive $199,000.00. City Manager Duffey explained that staff wanted to provide the City Council with information on the existing budget for 2019 -20, budget adjustments and a 10-year projection. Additionally, based on Council’s previous request, staff returned to the Council to discuss a traffic officer, City Council paperless agendas, and the possible use of Rule 20A funding. 1. CONTINUE DELIBERATIONS ON THE CITY OF GRAND TERRACE PROPOSED ADJUSTMENTS FOR THE FY2019-20 ANNUAL BUDGET; 2. APPROVE PROPOSED BUDGET ADJUSTMENTS FOR FY2019-20; AND 3. DIRECT STAFF TO PREPARE THE FY2019-20 REVISED BUDGET IN ACCORDANCE WITH THE APPROVED ITEMS ABOVE AND RETURN TO CITY COUNCIL FOR ADOPTION ON JUNE 25, 2019. RESULT: NO ACTION TAKEN G. NEW BUSINESS 9. Consideration of Resolutions Initiating Proceedings to Levy Annual Assessments for the FY 2019-2020 for the City of Grand Terrace Landscape & Lighting A ssessment District 89-1; Preliminarily Approving the Related Engineer’s Report; and Declaring the City Council’s Intention to Levy and Collect Annual Assessments for the City of Grand Terrace Landscape & Lighting Assessment District 89-1 and Setting and Providing Notice for the Related Public Hearing Alan French, Director of Public Works gave the PowerPoint presentation for this item and presented the Landscaping and Lighting Assessment District No. 89 -1 Engineer’s Report to the City Council. 1. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, PURSUANT TO THE LANDSCAPING AND LIGHTING B.2 Packet Pg. 11 Minutes Acceptance: Minutes of Jun 11, 2019 6:00 PM (Consent Calendar) Minutes Grand Terrace City Council, Successor Agency and Housing Authority June 11, 2019 City of Grand Terrace Page 7 ACT OF 1972, INITIATING PROCEEDINGS TO LEVY ANNUAL ASSESSMENTS FOR THE 2019-2020 FISCAL YEAR FOR THE CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 AND ORDERING THE ENGINEER TO PREPARE AND FILE A REPORT IN ACCORDANCE WITH ARTICLE IV OF CHAPTER 1 OF SAID ACT; AND 2. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, GIVING PRELIMINARY APPROVAL OF THE ENGINEERS REPORT FOR THE CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2019-2020; AND 3. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL ASSESSMENTS FOR THE CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 FOR FISCAL YEAR 2019-2020, AND SETTING AND PROVIDING NOTICE OF A PUBLIC HEARING CONCERNING SUCH ANNUAL ASSESSMENT ON TUESDAY, JULY 9, 2019, AT 6:00 P.M., IN THE CITY COUNCIL CHAMBERS LOCATED AT 22795 BARTON ROAD, GRAND TERRACE, CALIFORNIA RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Bill Hussey, Council Member AYES: Doug Wilson, Sylvia Robles, Bill Hussey, Jeff Allen ABSENT: Darcy McNaboe H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL - NONE I. CITY MANAGER COMMUNICATIONS G. Harold Duffey, City Manager provided the City Council with a video clip from the City’s 2019 Community Days. He also reminded the City Council and residents of Grand Terrace of the following Music & Movies in the Park with music beginning at 7:00 p.m. and movies to begin at 8:00 p.m.: Marley & Me, June 15, 2019 at Richard Rollins Park The Sandlot, June 29, 2019 at Veterans Freedom Park B.2 Packet Pg. 12 Minutes Acceptance: Minutes of Jun 11, 2019 6:00 PM (Consent Calendar) Minutes Grand Terrace City Council, Successor Agency and Housing Authority June 11, 2019 City of Grand Terrace Page 8 City Manager Duffey also wanted to remind everyone of the upcoming Community Workshop to Bring Back the Terrace Hills Middle School Pool to be held Saturday, June 22, 2019 at 10:00 a.m. located at 22579 De Berry Street. J. RECESS TO CLOSED SESSION Mayor McNaboe recessed the Regular Meeting of the City Council at 7:35 p.m. CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(b): One Potential Case RECONVENE TO OPEN SESSION Mayor McNaboe reconvened the Regular Meeting of the City Council at 8:14 p.m. REPORT OUT OF CLOSED SESSION Mayor McNaboe announced that there was no reportable action. K. ADJOURN Mayor McNaboe adjourned the Regular Meeting of the City Council in memory of Grand Terrace Resident and former Colton Joint Unified School District Board Trustee, Kent Taylor. The Next Regular City Council Meeting will be held on Tuesday, June 25, 2019 at 6:00 p.m. _________________________________ Darcy McNaboe, Mayor _________________________________ Debra L. Thomas, City Clerk B.2 Packet Pg. 13 Minutes Acceptance: Minutes of Jun 11, 2019 6:00 PM (Consent Calendar) CITY OF GRAND TERRACE CITY COUNCIL AND CITY COUNCIL AS THE SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY AND HOUSING AUTHORITY MINUTES ● JUNE 11, 2019 Council Chamber Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace ATTACHMENTS TO June 11, 2019 City Council Minutes PowerPoint Presentations B.3 Packet Pg. 14 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) City of Grand Terrace Continue Budget Deliberations on FY2019-20 Proposed Adjustments June 11, 2019 2030 Vision & Goals •Ensure Our Fiscal Solvency; •Maintain Public Safety; •Promote Economic Development; •Develop and Implement Successful Partnerships; and •Engage In Proactive Communications. 2 B.3 Packet Pg. 15 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) FY2019-20 •Supports the City’s mission, vision & core values; •Maintains the current level of service with focus on public safety & economic development; •General Fund does not require the use of fund balance; •Recognizes the strong economic recovery in the City & strategically invests in the City’s future. 3 GENERAL FUND Proposed Revenue & Expenditure Adjustments B.3 Packet Pg. 16 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Revenue Adjustments Category FY2019-20 Proposed Adjustments Revised FY2019-20 Property Tax $2,030,250 $0 $2,030,250 Residual Receipts - RPTTF $1,173,400 $210,000 $1,383,400 Proceeds from Sale of Property $80,000 ($80,000)$0 Franchise Fees $534,790 $0 $534,790 Licenses, Fees & Permits $421,380 $0 $421,380 Sales Tax $785,400 $0 $785,400 Intergov’t Revenue/Grants $26,500 $0 $26,500 Charges for Services $142,800 $10,000 $152,800 Miscellaneous $55,148 ($40,000) $15,148 Fines & Forfeitures $62,500 $10,000 $72,500 Use of Money & Property $27,000 $35,000 $62,000 Wastewater Receipts $300,000 $18,349 $318,349 Residual Receipts - Sr Center $60,000 ($60,000)$0 TOTAL $5,699,168 $103,349 $5,802,517 Expenditure Adjustments Category FY2019-20 Proposed Adjustments Revised FY2019-20 Salaries $1,199,281 $47,600 $1,246,881 Benefits $795,690 $47,000 $842,690 Professional/Contractual Svcs $3,231,816 $12,500 $3,244,316 Materials & Supplies $273,717 $0 $273,717 Lease of Facility/Equipment $8,000 $0 $8,000 Utilities $145,000 $0 $145,000 Overhead Cost Allocation ($84,950)$0 ($84,950) Transfers Out $125,800 $0 $125,800 TOTAL $5,694,354 $107,100 $5,801,454 B.3 Packet Pg. 17 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Revenue & Expense Summary Summary FY2019-20 Proposed Adjustments Revised FY2019-20 Revenue $5,699,168 $103,000 $5,802,517 Expenditure ($5,694,354)($107,100)($5,801,454) NET $4,814 ($4,100)$1,063 FY2019‐20  Expenditure  Requests B.3 Packet Pg. 18 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Summary 9 No.Dept Request Amount 1. City Manager’s Office Bus Driver Salaries& Benefits: $26,400 2. Finance Dept. Budget Officer / Principal Accountant Salaries& Benefits: $44,200 3. Finance Dept. Software License $12,500 4. Various Depts. Increase in benefit allowance $24,000 TOTAL $107,100 Proposed Adjustments •Staff is presenting several budget adjustments for the Council’s consideration that, if approved, will allow the City to provide the following: •Maintain the City’s current staffing level to ensure that staff can provide adequate levels of service in core function areas; 10 B.3 Packet Pg. 19 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Proposed Adjustments •Maintain necessary resources to implement the City’s 2030 Vision; •More effectively reflect departmental costs; •Maintain a structurally balanced budget; and •Any of the requested funding/increases in appropriation do not require the use of fund balance. 11 Items for Future Discussion 12 B.3 Packet Pg. 20 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) 1. Rule 20A Funds 13 Items for Future Discussion 1. Proposed Memorandum of Understanding with the City of West Hollywood for the “exchange” of unallocated Rule 20A funds. •This entails the transfer of $200,000 of Rule 20A proceeds; in return, the City’s General Fund would receive $110,000 for additional law enforcement. B.3 Packet Pg. 21 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Items for Future Discussion 2. Review of the General Fund 10-year Revenue & Expenditure projection. •Staff is providing City Council with two (Revenue & Expense reports): a. Status Quo – no change in services provided; b. Enhanced – increased revenue projections with increased services. 2A. Revenue &  Expenditure  Projection: Status Quo 16 B.3 Packet Pg. 22 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Revenue Assumptions: 1. Staff assumed a nominal 2% increase on revenue accounts; and 2. Although still needs approval from the County Wide Oversight Board and the Department of Finance, staff assumed the approval of the Successor Agency’s bond defeasance, netting the General Fund approximately $500,000 annually. Expenditure Assumptions 1. Staff assumed cost of living allowances and merit increases are implemented for affected employees; 2. A 4% increase for law enforcement services; 3. A 1% increase for professional and contractual services; B.3 Packet Pg. 23 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Expenditure Assumptions 4. A 5% for pension liabilities (unfunded accrued liabilities); 5. Absorption of the Child Care Fund’s share of pension liability; 6. Implementation of payment plans for the general fund’s liabilities which include: Expenditure Assumptions a. Loan to Successor Agency ($925k): payment of $625k after sale of property on Barton Road; return to affected entities, balance of $300k, payment plan beginning in FY2025-26; b. Loan to Housing Authority ($168k): payment plan beginning in FY2021-22; c. Loan to Waste Water Fund ($875k): full payment after sale of property on Barton Road; d. OPEB Annual contribution: ($50k) beginning in FY2026-27. B.3 Packet Pg. 24 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Expenditure Assumptions e. The liabilities above do not include the additional payments against the City’s unfunded accrued liability (UAL). f.Included in the expenditure budget is the annual required contribution (ARC) that is paid to CalPERS ($450,000) for the unfunded accrued liability. 10-Year Rev. & Exp. – Status Quo 22 In millions ($) 2019- 20 2020- 21 2021- 22 2022- 23 2023- 24 2024- 25 2025- 26 2026- 27 2027- 28 2028- 29 REV 5.8 6.2 6.4 6.5 6.8 6.9 7.1 7.3 7.6 7.8 EXP (5.8)(6.0)(6.3)(6.5)(6.6)(6.7)(6.9)(7.1)(7.2)(7.5) NET >0.1 0.2 0.1 0.1 0.2 0.2 0.2 0.2 0.3 0.3 B.3 Packet Pg. 25 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) 10-Year Rev. & Exp. – Status Quo 23 5.80 6.25 6.42 6.59 6.77 6.96 7.15 7.35 7.56 7.79 5.80 6.06 6.31 6.45 6.59 6.75 6.90 7.11 7.27 7.45 $5,000,000 $5,500,000 $6,000,000 $6,500,000 $7,000,000 $7,500,000 $8,000,000 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Revenue Expense Revenue Expenditure General Fund 10-Year Revenue & Expense Projection STATUS QUO Sustainable Healthy Vulnerable Unsustainable/ Insolvent 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 Healthy: Revenues exceed expenditures, continue to show growth, year over year, and the City maintains a 2-month reserves-rainy day fund Sustainable: Revenues exceeds expenditures (2-month reserves–rainy day fund) Vulnerable: Revenues exceed expenditures (less than the 2-month reserve–rainy day fund) Unsustainable/Insolvent: Revenues less than expenditures 27/28 28/29 Rev $5.8M Exp $5.8M Rev $6.2M Exp $6.0M Rev $6.4M Exp $6.3M Rev $6.5M Exp $6.5M Rev $6.8M Exp $6.6M Rev $6.9m Exp $6.7M Rev $7.1M Exp $6.9M Rev $7.3M Exp $7.1M Rev $7.6M Exp $7.2M Rev $7.8M Exp $7.5M B.3 Packet Pg. 26 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) 10-Year Rev. & Exp. – Status Quo •Although the budget is “Healthy,” it does not accommodate enhanced levels of service; and •It does not expand the level of public safety service. 25 2B. Enhanced  Revenue & Expenditure Projection 26 B.3 Packet Pg. 27 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Revenue Assumptions: 1. The base for the following 10-year projection includes the projections on the prior report; 2. Additional projections include: a. Increased sales tax to existing establishments beginning in FY2020-21 ($78k); b. Increased sales tax due to new development beginning in FY2021-22 ($27k); Revenue Assumptions: c. Increased revenue projections are conservative and based on permit activity, land development, development agreements and data from City’s sales tax consultant; d. Implementation of a Transient Occupancy Tax (TOT) for a projected hotel beginning in FY2021-22 ($150k); e. Increased property tax due to new development and/activity beginning in FY2021-22 ($160k); and f. Projected additional rent and charges beginning in FY2021-22 ($50k). B.3 Packet Pg. 28 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Expenditure Assumptions 1. Additional staff to support future operations over the next 10 years: a. Finance Dept (Finance Director, Management / Finance Analyst); b. Public Works (Maint. Supervisor, Compliance Officer); and c. Planning & Development Svcs (Senior Planner, Animal Control / Code Compliance Officer); and d. NOTE: all projections have to be approved by City Council through council action. B.3 Packet Pg. 29 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Expenditure Assumptions 2. Additional legal services ($50k) staff to support increased projects within the next 10 years; and 3. Additional law enforcement (two forty- hour Sheriff Deputies). 10-Year Rev. & Exp. – Enhanced 32 In millions ($) 2019- 20 2020- 21 2021- 22 2022- 23 2023- 24 2024- 25 2025- 26 2026- 27 2027- 28 2028- 29 REV 5.8 6.5 7.1 7.6 8.1 8.4 8.7 8.9 9.2 9.5 EXP (5.8)(6.5)(7.1)(7.6)(8.1)(8.4)(8.6)(8.9)(9.1)(9.3) NET >0.1 >0.1 >0.1 >0.1 >0.1 >0.1 0.1 >0.1 0.1 0.2 B.3 Packet Pg. 30 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) 10-Year Rev. & Exp. – Enhanced 33 6.26 6.42 6.59 6.77 6.96 7.15 7.35 7.56 7.79 6.0 6.32 6.45 6.59 6.75 6.90 7.11 7.27 7.45 5.80 6.49 7.03 7.66 8.15 8.47 8.69 8.92 9.21 9.47 5.80 6.46 7.08 7.63 8.12 8.39 8.60 8.87 9.08 9.32 5,000,000 5,500,000 6,000,000 6,500,000 7,000,000 7,500,000 8,000,000 8,500,000 9,000,000 9,500,000 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Revenue Status Quo Expense Status Quo Enhanced Revenue Enhanced Expense Enhanced Revenue Enhanced Expense Revenue Status Quo Expense Status Quo General Fund 10-Year Revenue & Expense Projection ENHANCED Sustainable Healthy Vulnerable Unsustainable/ Insolvent 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 Healthy: Revenues exceed expenditures, continue to show growth, year over year, and the City maintains a 2-month reserves-rainy day fund Sustainable: Revenues exceeds expenditures (2-month reserves–rainy day fund) Vulnerable: Revenues exceed expenditures (less than the 2-month reserve–rainy day fund) Unsustainable/Insolvent: Revenues less than expenditures 27/28 28/29 Rev $5.8M Exp $5.8M Rev $6.5M Exp $6.5M Rev $7.1M Exp $7.1M Rev $7.6M Exp $7.6M Rev $8.1M Exp $8.1M Rev $8.4m Exp $8.4M Rev $8.7M Exp $8.6M Rev $8.9M Exp $8.9M Rev $9.2M Exp $9.1M Rev $9.5M Exp $9.3M 10-Year Rev. & Exp. – Status Quo B.3 Packet Pg. 31 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) 3. Paperless Agendas Items for Future Discussion •Discussion on the cost effectiveness of paperless agendas (utilizing the use of iPads) versus printed agenda packets. B.3 Packet Pg. 32 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) 4. Traffic Enforcement Items for Future Discussion •Discussion on assigning a Traffic officer (at least once a month) at various times and locations throughout the City for enforcement. B.3 Packet Pg. 33 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Staff Recommendations 39 Recommendations 1.Approve the FY2019-20 proposed budget adjustments; and 2.Direct staff to prepare the FY2019-20 Revised Budget in accordance with the approved items above and return to City Council for adoption on June 25, 2019. B.3 Packet Pg. 34 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Questions? B.3 Packet Pg. 35 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) City of Grand Terrace Landscaping and Lighting Assessment District No. 89-1B.3Packet Pg. 36Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) CITY OF GRAND TERRACELANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1ZONE 4B.3Packet Pg. 37Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) CITY OF GRAND TERRACELANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1ZONE 5CITY OF GRAND TERRACELANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1ZONE 6B.3Packet Pg. 38Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) CITY OF GRAND TERRACELANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1ZONE 7Next StepsX1) Hold Public HearingX2) Adopt Resolution providing for the annual assessment levy for the Landscaping and Lighting Assessment DistrictB.3Packet Pg. 39Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) City Manager’s Update 6/11/2019 B.3 Packet Pg. 40 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) Community Workshops to  Bring Back the THMS Pool! Next Workshop: Sat, June 22, 2019 10 AM THMS Pool Site 22579 De Berry St. B.3 Packet Pg. 41 Communication: Attachment to Minutes - 06/11/2019 (Consent Calendar) CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● JUNE 12, 2019 Community Room Special Meeting Workshop 6:00 PM 22795 Barton Road ● City Hall City of Grand Terrace Page 1 CALL TO ORDER Mayor Darcy McNaboe convened the Special Meeting of the City Council, City Council as the Successor Agency to the Community Redevelopment Agency and Housing Authority at 6:00 p.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Darcy McNaboe. Attendee Name Title Status Arrived Darcy McNaboe Mayor Present Doug Wilson Mayor Pro Tem Absent Sylvia Robles Council Member Present Bill Hussey Council Member Present Jeff Allen Council Member Present A. PUBLIC COMMENT Debra Thomas, City Clerk read into record emails received from the following residents: Jennifer Mankel, Grand Terrace requested additional law enforcement for the City and suggested legalizing marijuana to help fund the additional public safety. Jane Valencia, Grand Terrace also requested additional law enforcement for the City and supports legalizing marijuana to help fund the additional public safety. Marie Vidmar, Grand Terrace supports more law enforcement and expressed her concern regarding homelessness in the City. Bobbie Forbes, Grand Terrace expressed her appreciation to the City Council for holding the Special Meeting Priorities Workshop. Hanni Bennett, Grand Terrace would like to see more residents participate in the Citizens on Patrol Program. B.4 Packet Pg. 42 Minutes Acceptance: Minutes of Jun 12, 2019 6:00 PM (Consent Calendar) Minutes Grand Terrace City Council June 12, 2019 City of Grand Terrace Page 2 Jason Greeley, Grand Terrace would like the City Council to support Art in Public Places. Steve Meeks, Grand Terrace would like the City Council to support cannabis operations in the City which he believes could support law enforcement funding. Jeffrey McConnell would like the City Council to support additional ALPR Cameras, increased participation in the COP program, signage, cannabis and suggested the City Council put out a survey to see whether or not residents would support the inclusion of the cannabis industry in the City. Don Smith, Grand Terrace would like the City Council to address speeding on Barton and Mt. Vernon Roads. B. NEW BUSINESS 1. Priorities Work Projects Workshop G. Harold Duffey, City Manager gave the PowerPoint presentatio n and provided the following information: · The Purpose of the Priorities Workshop · Council Priorities · Resource Allocation · Organizational Capacity · Workshop Process City Manager Duffey outlined the priorities for Economic Development, Committees & Commissions, Human Resources, Finance and Senior Center Development. Mayor McNaboe stated she does not want the City Manager running committees and directed that his focus should be on Economic Development. Council Member Sylvia Robles wants the City Man ager to focus on Economic Development and delegate the day to day duties to his Assistant City Manager. Council Member Jeff Allen suggested the City allow the volunteers to run the special events. City Manager Duffey stated he would bring back to the City Council options to assist with delegating the City Special Events, the Parks & Recreation Advisory Committee and Youth Commission. B.4 Packet Pg. 43 Minutes Acceptance: Minutes of Jun 12, 2019 6:00 PM (Consent Calendar) Minutes Grand Terrace City Council June 12, 2019 City of Grand Terrace Page 3 Mayor McNaboe moved, with a second from Council Member Hussey, to delegate the responsibility of attending Committee and Commission meetings to other staff and the City Manager focus on Economic Development. RESULT: APPROVED [3 TO 1] MOVER: Darcy McNaboe, Mayor SECONDER: Bill Hussey, Council Member AYES: Darcy McNaboe, Sylvia Robles, Bill Hussey NAYS: Jeff Allen ABSENT: Doug Wilson Debra Thomas, City Clerk gave the PowerPoint presentation for the City Clerk Priority Projects List. Council Member Hussey suggested looking into the use of Smart City Technology Solutions and Applications. Alan French, Director of Public Works gave the PowerPoint presentation for the Public Works and Public Works Maintenance Priority Projects List. Council Member Hussey moved, with a second from Council Member Robles, moving the Fitness Park Canopy to a higher level of priority. RESULT: APPROVED MOVER: Bill Hussey, Council Member SECONDER: Sylvia Robles, Council Member AYES: Darcy McNaboe, Sylvia Robles, Bill Hussey, Jeff Allen ABSENT: Doug Wilson Sandra Molina, Planning & Development Services Director gave the PowerPoint presentation for the Planning & Development Services Priority Projects List. City Manager Duffey gave the PowerPoint presentation for Law Enforcement Services and the City’s Legal Services Priority Project Lists. Council Member Robles moved, with a second from Mayor McNaboe, to b ring back discussion on creating a Capital Improvement Project Reserve Fund. B.4 Packet Pg. 44 Minutes Acceptance: Minutes of Jun 12, 2019 6:00 PM (Consent Calendar) Minutes Grand Terrace City Council June 12, 2019 City of Grand Terrace Page 4 RESULT: APPROVED MOVER: Sylvia Robles, Council Member SECONDER: Darcy McNaboe, Mayor AYES: Darcy McNaboe, Sylvia Robles, Bill Hussey, Jeff Allen ABSENT: Doug Wilson Council Member Allen moved, with a second from Mayor McNaboe, to reach out to the community and encourage resident participation in the Citizens on Patrol Program. RESULT: APPROVED MOVER: Jeff Allen, Council Member SECONDER: Darcy McNaboe, Mayor AYES: Darcy McNaboe, Sylvia Robles, Bill Hussey, Jeff Allen ABSENT: Doug Wilson Council Member Allen moved, with a second from Mayor McNaboe, bringing Art in Public Places to the Parks & Recreation Advisory Committee for discussion and recommendation. RESULT: APPROVED MOVER: Jeff Allen, Council Member SECONDER: Darcy McNaboe, Mayor AYES: Darcy McNaboe, Sylvia Robles, Bill Hussey, Jeff Allen ABSENT: Doug Wilson Council Member Allen moved, with a second from Council Member Robles, directing the City Attorney to review cannabis industry regulations and provide recommendations to the City Council on the various cannabis industry components. ADJOURN Mayor McNaboe adjourned the Regular Meeting of the City Council at 8:00 p.m. The Next Regular City Council Meeting will be held on Tuesday, June 25, 2019 at 6:00 p.m. B.4 Packet Pg. 45 Minutes Acceptance: Minutes of Jun 12, 2019 6:00 PM (Consent Calendar) Minutes Grand Terrace City Council June 12, 2019 City of Grand Terrace Page 5 _________________________________ Mayor of the City of Grand Terrace _________________________________ City Clerk of the City of Grand Terrace B.4 Packet Pg. 46 Minutes Acceptance: Minutes of Jun 12, 2019 6:00 PM (Consent Calendar) CITY OF GRAND TERRACE CITY COUNCIL AND CITY COUNCIL AS THE SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY AND HOUSING AUTHORITY MINUTES ● JUNE 12, 2019 Council Chamber Special Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace ATTACHMENTS TO June 12, 2019 City Council Minutes PowerPoint Presentations B.5 Packet Pg. 47 Communication: Attachment to Minutes - 06/12/2019 - SP (Consent Calendar) Council Priorities WorkshopPurpose of Priorities Workshop1. Provides Council with an Opportunity toReiterate Its Priorities; and2. Provide Alignment of Staff’s ResourceAllocation with Council Priorities; and3. Review Organizational Capacity.B.5Packet Pg. 48Communication: Attachment to Minutes - 06/12/2019 - SP (Consent Calendar) Council Priorities 1. City Council establishes priority projects through thefollowing actions:a) 2030 Vision Planb) Adoption of Annual Budgetc) Approval of Items During Council Meetingsd) External Legislative Mandatese) Constituent Input that Leads to Council Item forApprovalResource Allocation 1. Department Resource Allocation is Driven by:a) 2030 Vision Planb) City Manager’s Implementation Plan of the 2030Visionc) Adopted Budgetd) Council Agenda Items Throughout the Fiscal YearB.5Packet Pg. 49Communication: Attachment to Minutes - 06/12/2019 - SP (Consent Calendar) Organizational Capacity 1. The Priority Workshop also allows the Council and staff todiscuss the organization’s capacity to take on additionalprojects. The discussion should include the following:a) Staffing allocation and resources.b) Impacts of taking on more work after organizationreaches capacity.c) Ways to mitigate impacts of exceeding capacity.d) Consolidation, Cross Training, Doing More With Less =Exceeding Capacity?Workshop Process1. Departments Present Their “Top, High and Priority” Projects;2. Council Shall Affirm, Adjust or Add Priorities3. Modification to Staff’s Priorities Lists are Addressed by:a) Motion, Second and Vote4. Additions to Priorities Lists Are Addressed bya) Motion That Identifies the Item’s Placement on the PriorityHierarchy, Second and Scoring. Based on Score, Item Shall beMoved to Priority Category.B.5Packet Pg. 50Communication: Attachment to Minutes - 06/12/2019 - SP (Consent Calendar) Only Discuss Projects, Not Day-to-Day ServicesB.5Packet Pg. 51Communication: Attachment to Minutes - 06/12/2019 - SP (Consent Calendar) City Manager’s OfficeEconomic DevelopmentTOP PRIORITYHIGH PRIORITYPRIORITY“A” Top Priority“B” High Priority“C” PriorityDevelopment of 4.78 Acres on Barton Rd.San Bernardino County Child Care FacilityDevelopment on City Center Dr.Gateway Specific Plan Pit Stop Development Cage ParkTaco BellLa Crosse Development Rails to Trails Grant to Access Santa Ana River TrailGrocery OutletStater Bros. Expansion Walgreens Center ExpansionSurgical CenterStorm Drainage MichiganMr. TV VideoRDA Lot 0.80 Acre DevelopmentKaz Ramen CoffeeRichardson’s RVHollywood Video ConversionEdwin FuelsFire Station AgreementTOT Tax Implementation“A” Top PriorityDevelopment of 4.78 Acres on Barton Rd.Gateway Specific PlanTaco BellGrocery OutletSurgical CenterMr. TV VideoKazRamen CoffeeHollywood Video ConversionEdwin FuelsFire Station AgreementTOT Tax Implementation“B” High PrioritySan Bernardino County Child Care FacilityPit Stop DevelopmentLa Crosse DevelopmentStater Bros. ExpansionStorm Drainage MichiganRDA Lot 0.80 AcreDevelopmentRichardson’s RV“C” PriorityDevelopment on City CenterDr.Cage ParkRails to Trails Grant to Access Santa Ana River TrailWalgreens Center ExpansionB.5Packet Pg. 52Communication: Attachment to Minutes - 06/12/2019 - SP (Consent Calendar) Committees & CommissionsTOP PRIORITYHIGH PRIORITYPRIORITY“A” Top Priority“B” High Priority“C” PriorityStaff Support for Parks & Rec and Youth CommissionSpecial Event Support“A” Top PriorityStaff Support for Parks & Rec and Youth CommissionSpecial Event SupportHuman ResourcesTOP PRIORITYHIGH PRIORITYPRIORITY“A” Top Priority“B” High Priority“C” PriorityBenefits & Recognition Program Annual Events for EmployeesAnnual Evaluation & Merit Increases (Reinstated)Council & City Staff Social EventsEmployee Appreciation Program Review of Health and Compensation“A” Top PriorityBenefits & Recognition ProgramAnnual Evaluation & Merit Increases (Reinstated)Employee Appreciation Program“B” High PriorityAnnual Events for EmployeesCouncil & City Staff Social EventsReview of Health and CompensationB.5Packet Pg. 53Communication: Attachment to Minutes - 06/12/2019 - SP (Consent Calendar) “A” Top Priority“B” High Priority“C” PriorityReview of Business License Fee Finance Department Staff Re-organizationHousing Agency Programs Review of Cost-Effective Health BenefitsIncrease in Senior Center ServicesFinance & Senior Center Dev.TOP PRIORITYHIGH PRIORITYPRIORITY“A” Top PriorityReview of Business License FeeHousing Agency ProgramsIncrease in Senior Center Services“B” High PriorityFinance Department Staff Re-organizationReview of Cost-Effective Health BenefitsCity Clerk’s OfficeB.5Packet Pg. 54Communication: Attachment to Minutes - 06/12/2019 - SP (Consent Calendar) City Clerk’s OfficeTOP PRIORITYHIGH PRIORITYPRIORITY“A” Top Priority“B” High Priority“C” PriorityFPPC ComplianceScanningCity Web Page-Continuous improvement Records DestructionTelephone System Improvements City Clerk’s Department OperationsTechnology Program – Tablet Use Increase Awareness of Online Public MaterialFacebook Live and TwitterIncrease Participation in City Council Meeting InvocationsCity Adopted Budgets and Agenda Packets Lighting in City Council ChamberCommunity Posting BoardCity Hall Information KiosksManage City Neighborhood Recognition ProgramsCity Council Chamber Reception Area UpgradeAnnual Acknowledgment ProgramCity Council Agenda ModificationsIncrease content of Intranet“A” Top PriorityFPPC ComplianceCity Web Page-Continuous improvementTelephone System ImprovementsTechnology Program–Tablet UseFacebook Live and TwitterCity Adopted Budgets and Agenda PacketsCommunity Posting BoardManage City Neighborhood RecognitionProgramsAnnual Acknowledgment ProgramCity Council Agenda ModificationsIncrease content of Intranet“B” High PriorityScanningRecords DestructionCity Clerk’s DepartmentOperationsIncrease Awareness of OnlinePublic MaterialIncrease Participation in CityCouncil Meeting InvocationsLighting in City Council ChamberCity Hall Information KiosksCity Council Chamber ReceptionArea UpgradePublic WorksB.5Packet Pg. 55Communication: Attachment to Minutes - 06/12/2019 - SP (Consent Calendar) “A” Top Priority“B” High Priority“C” PriorityHighway Safety Improvement Program- Mt. Vernon IntersectionsHighway Safety Improvement Program Cycle 9 GuardrailFitness Park CanopyPreston Signal UpgradeSmall Cell Site Infrastructure PlanPark EnhancementsCommerce Way ExpansionParking City Wide StrategyMt. Vernon Slope Stabilization Utility Pole Undergrounding Master PlanEV Charging StationWest Barton Bridge ReplacementYear 3 CIPSupport for Community EventsFee StudyBarton Interchange Maintenance AgreementBarton Speed FeedbackDevelopment PlansFire Station Roof RepairPW Priority ProjectsTOP PRIORITYHIGH PRIORITYPRIORITY“A” Top PriorityHighway Safety ImprovementProgram-Mt. Vernon IntersectionsPreston Signal UpgradeCommerce Way ExpansionMt. Vernon Slope StabilizationEV Charging StationYear 3 CIPFee StudyBarton Interchange MaintenanceAgreementBarton Speed FeedbackDevelopment PlansFire Station Roof Repair“B” HighHighway Safety ImprovementProgram Cycle 9 GuardrailSmall Cell Site Infrastructure PlanParking City Wide StrategyUtility Pole UndergroundingMaster PlanWest Barton BridgeReplacementSupport for Community Eventsh PriorityFitness ParkCanopyParkEnhancements“C” PriorityPW Maintenance PrioritiesTOP PRIORITYHIGH PRIORITYPRIORITY“A” Top Priority“B” High Priority“C” PriorityTraffic signal/Street light Storm Drain/ChannelStreet, sidewalk, curb, parkwayCity FacilitiesParksCity Neighborhood Lighting PlanStreet Sign Replacement Program“A” Top PriorityTraffic signal/Street lightStreet, sidewalk, curb, parkwayParks“B” High PriorityStorm Drain/ChannelCity FacilitiesCity Neighborhood LightingPlanStreet Sign ReplacementProgramB.5Packet Pg. 56Communication: Attachment to Minutes - 06/12/2019 - SP (Consent Calendar) Planning & Development Services“A” Top Priority“B” High Priority“C” Priority4.78 Acres – PSA, EntitlementsHousing Authority Report Grant ATP – Close OutAmend Master PlanZoning Around SchoolsSign CodeEdwin FuelsNoticing PolicyVan Buren – AegisGateway SPBarton Road Streetscape CrestwoodAnita – Grocery Outlet Sign Michigan Street Complete StreetGrant Prop 68B&S RFPTaco BellHousing Element RFPMr. TV Video Parking Program Canal – AegisProject in 40-Acre Greenbelt Grand Terrace Road – AegisBlue Mountain Trail Grant Safety Element UpdateAnimal Control Ordinance Update Housing Element UpdateParking Citation AppealsCUP in 40-Acre GreenbeltLa Cadena SFRREC CenterNational LogisticsSurgical CenterPlanning & Dev. ServicesTOP PRIORITYHIGH PRIORITYPRIORITY“A” Top Priority4.78 Acres–PSA,EntitlementsAmend Master PlanEdwin FuelsGateway SPAnita–Grocery Outlet SignGrant Prop 68Taco BellMr. TV Video Parking ProgramProject in 40-Acre GreenbeltBlue Mountain Trail GrantAnimal Control Ordinance UpdateParking Citation AppealsCUP in 40-Acre Greenbelta Cadena SFRREC CenterNational LogisticsSurgical CenterCLaRRNS“B” HHousing Authority ReportZoning Around SchoolsNoticing PolicyBarton Road StreetscapeMichigan Street Complete StreetB&S RFPHousing Element RFPCanal–AegisGrand Terrace Road–AegisSafety Element UpdateHousing Element UpdateHigh PriorityGrant ATP–CloseOutSign CodeVan Buren –AegisCrestwood“C” PriorityB.5Packet Pg. 57Communication: Attachment to Minutes - 06/12/2019 - SP (Consent Calendar) AGENDA REPORT MEETING DATE: June 25, 2019 Council & Successor Agency Item TITLE: Fiscal Year 2019-2020 Budget Revisions Including Budget Deliberations on Paperless Agendas, Additional Traffic Officer, Approval of Use of Rule 20A Funds, Reinstatement of Merit Increases, and Use of the Child Care Fund’s Fund Balance PRESENTED BY: Cynthia Fortune, Assistant City Manager RECOMMENDATION: (1) Approve Resolution 2019-XX adopting Fiscal Year 2019- 2020 Budget Revisions as presented to the City Council on May 28, 2019; said budget is structurally balanced, not requiring the use of fund balance. (2) Continue budget deliberations on the following items; after which, if approved, incorporate into the FY2019 -20 budget: a) Review of the use of Microsoft Surfaces or iPads (paperless agendas) for City Council showing one -time funds and subsequent years’ savings; if approved, there is a one-time cost of $14,500 and an annual maintenance cost of $2,875 increasing General Fund expenditures by $14,500 in FY2019-20; b) Review additional public services of one Traffic Officer, one day a week, estimated at an annual cost of $24,000, increasing General Fund expenditures by $24,000 in FY2019-20; c) Review of the Proposed Memorandum of Understanding with the City of West Hollywood for Rule 20A funds (this will provide additional revenue of $110,000 to the General Fund; if approved, authorize the City Manager to execute the agreement with the City of West Hollywood; d) Review the reinstatement of merit increases to affected employees; if approved, this will increase General Fund expenditures by $31,611 in FY2019-20. (3) Approve the use of the Child Care Fund’s fund balance in FY2019-20 to pay for its’ former employees share of unfunded accrued liabilities ($150,000) and authorize the transfer of the remaining fund balance ($84,450) to the General fund to be set aside for future liabilities. F.6 Packet Pg. 58 2030 VISION STATEMENT: This staff report supports the City’s Mission, Vision and Goals: • Ensuring Our Fiscal Solvency; • Maintaining Public Safety; • Promoting Economic Development; • Developing and Implementing Successful Partnerships; and • Engaging In Proactive Communications. BACKGROUND and DISCUSSION: The Budgets for Fiscal Years (FY) 2018-19 and 2019-20 were approved and adopted on June 26, 2018. Budget adjustments to the FY2019 -20 budget were introduced on May 28, 2019; subsequently budget deliberations continued on June 11, 2019. (1) FY2019-20 PROPOSED ADJUSTMENTS City Council was presented with the following proposed adjustments: Table 1 City of Grand Terrace General Fund (Fund 10) FY 2019-10 Proposed Revenue and Expenditure Adjustments FY2019-20 Proposed Adjustments Revised FY2019-20 REVENUE Property Tax $2,030,250 $0 $2,030,250 Residual Receipts - RPTTF $1,173,400 $210,000 $1,383,400 Proceeds from Sale of Property $80,000 ($80,000) $0 Franchise Fees $534,790 $0 $534,790 Licenses, Fees & Permits $421,380 $0 $421,380 Sales Tax $785,400 $0 $785,400 Intergovernmental Revenue/Grants $26,500 $0 $26,500 Charges for Services $142,800 $10,000 $152,800 Miscellaneous $55,148 ($40,000) $15,148 Fines & Forfeitures $62,500 $10,000 $72,500 Use of Money & Property $27,000 $35,000 $62,000 Wastewater Receipts $300,000 $18,349 $318,349 Residual Receipts - Sr Center $60,000 ($60,000) $0 $5,699,168 $103,349 $5,802,517 EXPENDITURE Salaries $1,199,281 $47,600 $1,246,881 F.6 Packet Pg. 59 City of Grand Terrace General Fund (Fund 10) FY 2019-10 Proposed Revenue and Expenditure Adjustments FY2019-20 Proposed Adjustments Revised FY2019-20 Benefits $795,690 $47,000 $842,690 Professional/Contractual Services $3,231,816 $12,500 $3,244,316 Materials & Supplies $273,717 $0 $273,717 Lease of Facility/Equipment $8,000 $0 $8,000 Utilities $145,000 $0 $145,000 Overhead Cost Allocation ($84,950) $0 ($84,950) Transfers Out $125,800 $0 $125,800 TOTAL $5,694,354 $107,100 $5,801,454 SUMMARY Revenue $5,699,168 $103,000 $5,802,517 Expenditure ($5,694,354) ($107,100) ($5,801,454) NET $4,814 ($4,100) $1,063 Table 2 City of Grand Terrace FY2019-20 Proposed Detailed Expenditure Adjustments DEPARTMENT: CITY MANAGER Funding Source Personnel General Fund Increase in Salaries & Benefits for the Bus Driver position $26,400 Description • The Silver Liner provides bus services to the City’s Senior Center participants. • This includes services to and from the Center, and establishments within and surrounding Grand Terrace from 9:30 am to 2:30 pm. • The Silver Liner’s capacity is 16 (including the driver) with two seats set-aside to accommodate wheel-chair bound seniors. • The monthly activities include trips to Wal-Mart & Ross, matinee movies, lunch out to local restaurants in Grand Terrace, Stater Bros & Rite-Aid, etc. • Sign-ups are usually required and is normally at capacity for most trips. • Currently, when an activity such as a dinner or late movie is planned, hours are taken away from other trips due to the driver’s limited hours, therefore reducing other planned activities. • One of the Senior Center’s goals is isolation prevention – getting Seniors out of their homes, communicating with others, camaraderie, etc.; the bus trips support this goal. F.6 Packet Pg. 60 City of Grand Terrace FY2019-20 Proposed Detailed Expenditure Adjustments • Additional hours would allow for double trips to high-attendee activities, late afternoon or early morning activities without having to reduce hours on other days to accommodate these types of activities; the Silver will be available from 9:00 am – 4:00 pm. DEPARTMENT: FINANCE Funding Source Personnel General Fund Fully fund the Budget Officer/Principal Accountant position $44,200 Description • The current Principal Accountant is a CalPERS annuitant who can only work 960 hours during a fiscal year (an average of about 20 hours per week). • It is the Principal Accountant/Budget Officer’s responsibility to monitor all revenue and expense transactions, close and balance the City’s general ledger at the end of each month for financial reporting and prepare all documents for review for the several audits that are conducted throughout the year. • The responsibility imposed on the position requires more than 20 hours per week, resulting in late or delayed reports to governing legislative bodies or entities. • This position leads the preparation, review and publishing of the city’s annual financial reports, and all audit examinations performed by outside governing agencies. • The additional hours will provide the Finance Department the ability to review closely all transactions recorded, balance the General Ledger in a timely manner. • This position will aid the Assistant City Manager in the development, preparation and monitoring of the City’s annual budget. Professional/Contractual Services Annual Software License for Live Pension, OPEB and Unfunded Accrued Liability tracking $12,500 Description • Analytical software that provides real time analysis & tools for long-term management of pension & other post-employment benefits. • Will further the City’s strategic plan goals of developing a long-term plan to address the City’s unfunded liabilities in pension obligations. • To comply with Government Accounting Standards Board (GASB) Statements No. 68 & 75, of reporting net pension liabilities and post-employment benefits other than pension on the City’s financial statements, determining the balance of unfunded liabilities is required. • Data gathering of the City’s demographics of qualified employees, retirees, their beneficiaries, benefit information, and actuarial assumptions are required to determine unfunded liabilities; this software will use all the data gathered and determine the City’s unfunded liabilities, in real time. F.6 Packet Pg. 61 City of Grand Terrace FY2019-20 Proposed Detailed Expenditure Adjustments • This tool will be used to make long term financial decisions related to: salaries & benefits of employees, hiring decisions, and evaluations of strategies to pay down unfunded liabilities. • This tool provides data for sample scenarios such as: effect of CalPERS changing their discount rate, amortization period, medical benefits, or the City making a lump sum payment to pay down the liabilities. will be used to make long term financial decisions related to: salaries & benefits of employees, hiring decisions, and evaluations of strategies to pay down unfunded liabilities. • Other current agencies using this software include the following cities: South Gate, Lakewood, Newport Beach, Norwalk, Ventura, West Sacramento, Corona, Hesperia, & Murrieta; the counties of: Napa, Sutter & Humboldt; and several water & fire districts. TOTAL FINANCE $56,700 DEPARTMENT: VARIOUS Funding Source Benefits General Fund Increase in Benefit Allowance for employees @ 100 per month $24,000 Description • City Hall employees have not received a cost of living allowance (COLA) in almost 10 years. • The increase received was a one-time merit increase in 2016 for affected employees (employees who have not reached their top step). • The increase in benefit allowance will more accurately reflect all medical costs: health, dental, vision. • The increase in benefit allowance does not contribute or increase the City’s pension liabilities. TOTAL PROPOSED ADJUSTMENTS $107,100 (2) a) REVIEW THE USE OF P APERLESS AGENDAS Staff researched the cost effectiveness of paperless agendas (utilizing the use of Microsoft Surfaces or iPads) vs. printed agendas. The table below provides both cost estimates: Table 3 Microsoft Surface or iPads for Paperless Agendas vs. Paper Hard Copy Agendas Microsoft Surface or iPad F.6 Packet Pg. 62 Microsoft Surface or iPads for Paperless Agendas vs. Paper Hard Copy Agendas Description Unit Cost No. Total Cost 1 Microsoft Surface, ability to write on screen of laptop, 14", 8gb, touch display, 4 lbs. $2,000.00 5 $10,000.00 2 3-year warranty for Laptop $300.00 5 $1,500.00 3 Microsoft Office (annual license) $150.00 5 $750.00 4 Adobe Acrobat Pro (annual license) $200.00 5 $1,000.00 5 Drawboard PDF Pro (ability to add notes to Agenda packets, save & integrate notes into pdf Agenda files (annual license); compatible with Microsoft Office $50.00 5 $250.00 6 Miscellaneous (internet, e-mail, writing pens, etc.) $200.00 5 $1,000.00 TOTAL ONE-TIME COST $14,500.00 Annual Cost/Maintenance & Support $2,875.00 Hard Copy Agendas Description Unit Cost No. Total Cost 1 Pages per Agenda (300 per report, 2 reports per month) $0.10 36,000 $3,600.00 2 Cost to prepare Agenda packets (2 hours per meeting) $75.00 48 $3,600.00 TOTAL ANNUAL COST $7,200.00 Although there are one-time costs totaling $14,500, continued use of the Microsoft Surfaces or iPads will result in annual savings of $4,325 (hard copy agendas of $7,200 vs. annual maintenance costs of $2,875). Approval of the above item by City Council will require appropriation from the General Funds’ fund balance or reallocation of existing or proposed expenditure budget items. (2) b) REVIEW OF ADDITIONAL PUBLIC SERVICES Staff provided an estimate of the addition of a Traffic Officer (at least once a month) at various times and locations through the City for enforcement. The estimated cost would be approximately $2,000 per month, or $24,000 annually. Approval of this item by City Council will require appropriation from the General Fund’s fund balance or reallocation of existing or proposed expenditure budget items. City Council inquired of staff to search other cities and provide a breakdown of their General Fund budgets in comparison to Grand Terrace’s. Table s 4a through 4c below provides a comparison with like-size cities in San Bernardino and Riverside counties: F.6 Packet Pg. 63 Table 4a San Bernardino County Breakdown of General Fund San Bernardino County City Grand Terrace Yucca Valley Population 12,040 % of budget 21,519 % of budget Salaries & Benefits $1,994,971 35.0% $4,153,770 36.0% Operating Services & Supplies $1,694,176 29.8% $2,953,046 25.6% Public Safety - Police $2,005,207 35.2% $4,424,655 38.4% Public Safety - Fire $0 0.0% $0 0.0% $5,694,354 100.0% $11,531,471 100.0% Table 4b Riverside County -1 Breakdown of General Fund Riverside County City Calimesa Canyon Lake Population 8,637 % of budget 10,891 % of budget Salaries & Benefits $983,378 17.4% $595,018 10.7% Operating Services & Supplies $1,288,415 22.8% $984,300 17.7% Public Safety - Police $1,904,775 33.7% $1,753,720 31.5% Public Safety - Fire $1,475,030 26.1% $2,230,870 40.1% $5,651,598 100.0% $5,563,908 100.0% Table 4c Riverside County - 2 Breakdown of General Fund Riverside County City Rancho Mirage Blythe Population 18,295 % of budget 19,660 % of budget Salaries & Benefits $8,693,566 30.9% $2,723,735 29.5% Operating Services & Supplies $7,389,604 26.3% $1,752,939 19.0% Public Safety - Police $9,623,850 34.2% $4,323,368 46.7% Public Safety - Fire $2,434,290 8.7% $448,278 4.8% $28,141,310 100.0% $9,248,320 100.0% F.6 Packet Pg. 64 (2) c) REVIEW OF THE USE OF RULE 20A FUNDS On May 14, 2019 the City Council directed staff to return during budget deliberations for further discussion to accept an offer of $100,000 from the City of West Hollywood for the transfer of $200,000 in Rule 20A Credits. During the discussion of the item, staff provided additional information citing several communities (7) that have participated in the program, utilizing an inter-agency agreement to exchange Rule 20A credits for unrestricted funds. The City of West Hollywood since increased the rate of exchange from $.50 on the dollar to $.55 per dollar. Should City Council approve the agreement (Attachment B), the estimated revenue (one-time) increase to the General Fund would be $110,000 and may be used for all the items proposed above or any additional items or programs the City Council desires. Staff will also be requesting, upon approval of this item, to authorize the City Manager to execute the agreement between the Grand Terrace and the City of West Hollywood. (2) d) REVIEW OF REINSTATEMENT OF MERIT INCREASES On June 11, 2019, City Council discussed employees merit increases and the budget development guidelines that were adopted for the FY2018 -19 and 2019-20 budget. The approved guidelines included: • Should additional revenue sources be identified, the City Manager may submit personnel budgets that may consist of the following: ➢ Proposal of merit adjustments; ➢ Proposal of a cost-of-living adjustment (COLA); or ➢ A combination of the items above. • Any reinstatement of the above compensation items including the reinstatement of merit increases will be by policy direction of the City Council. Calculations for projected merit increases in FY2019-20 for affected employees took into consideration the following: each employee’s anniversary date (hire date) during the fiscal year); and the current step they were in. The estimated total cost for merit increases (including any benefits on the increase) are estimated at $31,61 1. The costs for each fund are as follows: Table 5 Fund Amount General Fund (84%) $26,554 Gas Tax Fund (12%) $3,793 Grant Funds (3%) $948 Housing Authority (1%) $316 $31,611 F.6 Packet Pg. 65 Should the City Council desire to reinstate merit increases in FY2019 -20, this requires appropriation from all the affected Funds’ fund balance or reallocation of existing or proposed expenditure budget items. CHILD CARE FUND On July 10, 2018, City Council approved the sale of the Child Care Facility to 22400 Barton LLC ($910,000). Less standard closing costs and broker’s commission, the Child Care Fund netting approximately $850,000. Staff requested and received approval from City Council to allocated some of the funds to remove the fund’s deficit and pay for its share of unfunded accrued liabilities for the Child Care employees as f ollows: Table 6 City of Grand Terrace Child Care Fund Funds from Sale of Property Total Consideration for Property $910,000 • Less commissions, recording fees, escrow and title charges ($60,000) Net $850,000 City Council authorized use of net proceeds: • Negative fund balance as of 06-30-2016 ($307,970) • FY2017-18 Unfunded Accrued Liability (UAL) & other expenses ($157,580) • FY2018-19 Unfunded Accrued Liability ($150,000) Total authorized use of net proceeds ($615,550) NET $234,450 On March 26, 2019, staff informed City Council that staff would be coming during the FY2019-20 budget review and request that the net proceeds of $234,450 be used as follows: 1. $150,000 be set aside for the Child Care’s portion of the City’s unfunded accrued liability; 2. $84,450 ($234,450 less $150,000) be transferred to the General Fund and the Child Care Fund be closed. At this time, staff is requesting authorization to appropriate $150,000 from the Child Care Fund’s fund balance to be used to pay its share o f unfunded accrued liabilities and the balance be transferred to the General Fund for Child’s Care’s future unfunded liabilities as follows: F.6 Packet Pg. 66 Table 7 Description Amount Net (Projected Fund Balance as of June 30, 2019) $234,450 Less: Proposed FY2019-20 appropriation (Child Care Fund’s UAL share) ($150,000) Projected Fund Balance, after the FY2019-20 UAL payment (amount requested to be transferred to the General Fund for Child Care’s future UAL share) ($84,450) At the closure of the Child Care Fund, starting in FY2020-21, the General Fund will be absorbing the Child Care Fund’s portion of the unfunded accrued liability of $150,000, increasing General Fund expenditures (although, if approved by City Council, the FY2020-21 UAL will be offset by $84,450 transfer from the Child Care Fund). 2030 Vision and 2014-2020 Strategic Plan On May 13, 2014, the City Council approved the City of Grand Terrace 2030 Vision and 2014-2020 Strategic Plan. The Plan’s purpose is to help the City prioritize its efforts and work programs, allocating both fiscal and human resources to achieve a shared vision and goals. The Plan identified five (5) main goals as follows: • Ensure our fiscal viability; • Maintain public safety; • Promote economic development; • Develop and implement successful partnerships; and • Engage in Proactive Communication. The Approved Budget and Proposed Budget Revisions addresses these goals in the City’s Vision and Strategic Plan to balance the budget and maintain core services in a positive manner as summarized below: • Maintain sheriff contract staffing level, preserving public safety; • Maintain City Hall staffing to provide adequate levels of service in core function areas; • Provide necessary resources to implement the Economic Development Strategic Plan, develop successful partnerships and an effective communications program; and, • Maintain adequate General Fund reserves. FISCAL IMPACT: The FY2019-20 Budget provides the funding and expenditure plan for all funds. As F.6 Packet Pg. 67 such, it serves as the City’s financial plan for the next fiscal year. City Council will be kept apprised regarding actual operating results for its major funds through the 1st Quarter, Mid-Year and Year-End Budget Reviews. These reviews will confirm current year-end projections and will include an update of the FY2019-20 projected revenues and expenditures. ATTACHMENTS: • Resolution to Adopt FY2019-20 Budget Revisions with Attachment A(DOCX) • MOU with West Hollywood (DOCX) APPROVALS: Cynthia A. Fortune Completed 06/20/2019 4:17 PM Finance Completed 06/20/2019 4:18 PM City Attorney Completed 06/20/2019 4:32 PM City Manager Completed 06/21/2019 9:56 AM City Council Pending 06/25/2019 6:00 PM F.6 Packet Pg. 68 RESOLUTION NO. 2019-______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING THE BUDGET REVISIONS TO THE ANNUAL BUDGET FOR FISCAL YEARS 2019-20 WHEREAS, Resolution 2018-26 approved and adopted the Budgets for Fiscal Years 2018-2019 and 2019-20 during the regularly scheduled City Council meeting on June 26, 2018; and WHEREAS, Proposed Budget Revisions were introduced for the Annual Budget for Fiscal Year 2019-20 during a regularly scheduled City Council meeting on May 28, 2019; and WHEREAS, Continued Deliberations were held on the Proposed Budget Revisions for the Annual Budget for Fiscal Year 2019-20 during a regularly scheduled City Council meeting on June 11, 2019; and WHEREAS, the City Manager has heretofore submitted to the City Council an Proposed Budget Revisions to the Adopted Budget for the City for Fiscal Year 2019-20, a copy of which, as may have been amended by the City Council, is on file in the City Clerk’s Department and is available for public inspection; and WHEREAS, the said Proposed Budget Revisions contain certain estimates of the services, activities and projects comprising the budget, and contains expenditure requirements and the resources available to the City; and WHEREAS, the City Council authorizes payment of expenses incurred by means of a check register prepared by the Finance Department and approved at regular meetings of City Council; and WHEREAS, said expenses are recurring in nature, the amounts having been previously approved by ordinance or resolution or otherwise entailing normal, administrative expenses including tax deposits, utility costs, storage fees and related costs of doing business; and WHEREAS, the City Council has made such revisions to the Adopted Budget and Proposed Budget Revisions as so desired; and WHEREAS, the Adopted Budget and Proposed Budget Revisions conform with the City’s 2030 Vision and 2014-2020 Strategic Plan; and WHEREAS, the Proposed Budget Revisions, as herein approved, will enable the City Council to make adequate financial plans and will ensure that City officers can administer their respective functions in accordance with such plans. F.6.a Packet Pg. 69 Attachment: Resolution to Adopt FY2019-20 Budget Revisions with Attachment A [Revision 2] (Approval of Resolution 2019-XX Adopting Fiscal NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grand Terrace, as follows: Section 1. The Proposed Budget Revisions, with summaries listed as Attachment A to this Resolution and as on file in the City Clerk’s Department and as may have been amended by the City Council, is hereby approved and adopted and incorporated into the Annual Budget of the City of Grand Terrace for Fiscal Years 2019- 20. Section 2. This Resolution shall take effect immediately upon the date of its adoption. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 2 5th day of June, 2019. ____________________________ Darcy McNaboe Mayor ATTEST: ___________________________ Debra L. Thomas City Clerk APPROVED AS TO FORM: ___________________________ Adrian R. Guerra City Attorney F.6.a Packet Pg. 70 Attachment: Resolution to Adopt FY2019-20 Budget Revisions with Attachment A [Revision 2] (Approval of Resolution 2019-XX Adopting Fiscal Attachment A FY2019-20 PROPOSED BUDGET REVISIONS City of Grand Terrace General Fund (Fund 10) FY 2019-10 Proposed Revenue and Expenditure Adjustments FY2019-20 Proposed Adjustments Revised FY2019-20 REVENUE Property Tax $2,030,250 $0 $2,030,250 Residual Receipts - RPTTF $1,173,400 $210,000 $1,383,400 Proceeds from Sale of Property $80,000 ($80,000) $0 Franchise Fees $534,790 $0 $534,790 Licenses, Fees & Permits $421,380 $0 $421,380 Sales Tax $785,400 $0 $785,400 Intergovernmental Revenue/Grants $26,500 $0 $26,500 Charges for Services $142,800 $10,000 $152,800 Miscellaneous $55,148 ($40,000) $15,148 Fines & Forfeitures $62,500 $10,000 $72,500 Use of Money & Property $27,000 $35,000 $62,000 Wastewater Receipts $300,000 $18,349 $318,349 Residual Receipts - Sr Center $60,000 ($60,000) $0 $5,699,168 $103,349 $5,802,517 EXPENDITURE Salaries $1,199,281 $47,600 $1,246,881 Benefits $795,690 $47,000 $842,690 Professional/Contractual Services $3,231,816 $12,500 $3,244,316 Materials & Supplies $273,717 $0 $273,717 Lease of Facility/Equipment $8,000 $0 $8,000 Utilities $145,000 $0 $145,000 Overhead Cost Allocation ($84,950) $0 ($84,950) Transfers Out $125,800 $0 $125,800 TOTAL $5,694,354 $107,100 $5,801,454 SUMMARY Revenue $5,699,168 $103,000 $5,802,517 Expenditure ($5,694,354) ($107,100) ($5,801,454) NET $4,814 ($4,100) $1,063 F.6.a Packet Pg. 71 Attachment: Resolution to Adopt FY2019-20 Budget Revisions with Attachment A [Revision 2] (Approval of Resolution 2019-XX Adopting Fiscal City of Grand Terrace FY2019-20 Proposed Detailed Expenditure Adjustments DEPARTMENT: CITY MANAGER Funding Source Personnel General Fund Increase in Salaries & Benefits for the Bus Driver position $26,400 DEPARTMENT: FINANCE Funding Source Personnel General Fund Fully fund the Budget Officer/Principal Accountant position $44,200 Professional/Contractual Services Annual Software License for Live Pension, OPEB and Unfunded Accrued Liability tracking $12,500 TOTAL FINANCE $56,700 DEPARTMENT: VARIOUS Funding Source Benefits General Fund Increase in Benefit Allowance for employees @ 100 per month $24,000 TOTAL PROPOSED ADJUSTMENTS $107,100 F.6.a Packet Pg. 72 Attachment: Resolution to Adopt FY2019-20 Budget Revisions with Attachment A [Revision 2] (Approval of Resolution 2019-XX Adopting Fiscal Attachment B 1 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF WEST HOLLYWOOD AND THE CITY OF GRAND TERRACE This Memorandum of Understanding (MOU) is entered into as of _____ , 2019 (Effective Date), by and between the City of West Hollywood, a California municipal corporation with its principal place of business at 8300 Santa Monica Blvd, West Hollywood, California 90069 (West Hollywood), and the City of Grand Terrace, a California municipal corporation with its principal place of business at 22795 Barton Rd, Grand Terrace, CA 92313 (Grand Terrace). West Hollywood and Grand Terrace are sometimes individually referred to herein as “Party” and collectively as “Parties”. RECITALS A. Electric Utilities collect and annually allocate funds to communities to convert overhead electric facilities to underground electric facilities (Rule 20A Funds). B. West Hollywood is actively planning one or more projects to underground overhead electric facilities that qualify for the application of California Public Utilities Commission (CPUC) Rule 20A Funds (Projects). West Hollywood desires to obtain additional Rule 20A Funds allocation to finance such Projects. C. Southern California Edison (SCE) currently has designated and dedicated a balance of $926,931.00 in Rule 20A Funds for the benefit of Grand Terrace (Grand Terrace Allocation), and Grand Terrace currently has no active projects which can make use of the Grand Terrace Allocation. D. West Hollywood desires to acquire, for consideration, $200,000 of the Grand Terrace Allocation to use in connection with the Projects, and Grand Terrace desires to transfer only that portion of the Grand Terrace Allocation to West Hollywood to enable the Rule 20A Funds, which have been allocated to Grand Terrace, to be used for their intended purpose of undergrounding electric facilities. AGREEMENT NOW, THEREFORE, the Parties hereto agree as follows: 1. Grand Terrace agrees to assign, for use by West Hollywood, its rights and interests in $200,000 of the Grand Terrace Allocation to West Hollywood, and West Hollywood agrees to acquire, for consideration, $200,000 of the Grand Terrace Allocation in accordance with the terms of this MOU. This MOU shall be subject to the approval of each the City Council of West Hollywood and the City Council of Grand Terrace and shall become effective on the date when both such approvals have been obtained (Effective Date). 2. Within fifteen (15) business days of the Effective Date, West Hollywood shall make a payment to Grand Terrace in the amount of One Hundred Thousand ($110,000) (Acquisition Price). The Acquisition Price shall be made in immediately available funds via check or wire transfer to an account designated by Grand Terrace. The Acquisition Price shall constitute full consideration for the transfer and assignment as described in Section 3 below. F.6.b Packet Pg. 73 Attachment: MOU with West Hollywood (Approval of Resolution 2019-XX Adopting Fiscal Year 2019-2020 Budget Revisions) Attachment B 2 3. Grand Terrace agrees to sell $200,000 of the Grand Terrace Allocation to West Hollywood at a purchase rate of Fifty Cents ($0.55) for every One Dollar ($1.00) of Rule 20A Funds. Within ten (10) business days of Grand Terrace’s receipt of the Acquisition Price funds, Grand Terrace shall deliver a written request to SCE, with a copy to West Hollywood, making a formal request to transfer and assign $200,000 of Rule 20A Funds contained in the Grand Terrace Allocation to and for the benefit of West Hollywood. Grand Terrace shall cooperate in good faith with West Hollywood to provide any additional documentation or information that is reasonably requested by SCE to complete the transfer. In the event that SCE is unable to complete the transfer, Grand Terrace shall return the Acquisition Price funds to West Hollywood within thirty (30) days of West Hollywood’s notification to Grand Terrace. 4. West Hollywood acknowledges and agrees that it has conducted its own investigation as to the applicability and transferability of the portion of the Grand Terrace Allocation for use in the Projects and that Grand Terrace has not made any representation or warranty to West Hollywood with respect to same. The actual use of the portion of the Grand Terrace Allocation by West Hollywood shall be subject to the rules and procedures adopted by SCE, CPUC, and such other conditions or requirements as are set forth in the Public Utilities Code. 5. West Hollywood shall indemnify, defend, and hold harmless Grand Terrace, its elected officials, officers, employees, and agents, from any claim, damage or liability arising in connection with the use of Rule 20A Funds from the Grand Terrace Allocation in connection with the construction of the Projects, including legal challenges of all types or natures, including but not limited to administrative, judicial, or legislative actions. 6. In the event that either Party is in breach of its obligations as set forth in this MOU, then the non-defaulting Party shall have the right to terminate this Agreement on ten (10) business days’ written notice to the defaulting Party unless the default is cured, or cure has commenced, within the notice period. Upon termination for breach, the non-defaulting Party may exercise any right or remedy which it may have under applicable law. Within ten (10) business days of termination pursuant to this Section 6, Grand Terrace shall return to West Hollywood that portion of the Acquisition Price funds applicable to that portion of the Grand Terrace Allocation not yet transferred by SCE to West Hollywood. 7. All notices to be given pursuant to this MOU shall be delivered in person or by commercial overnight delivery to the address of the Party set forth above, and addressed to the City Manager of such Party and shall be effective upon receipt. 8. This MOU shall be governed and construed in accordance with the laws of the State of California, and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of San Bernardino. 9. Each Party shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. F.6.b Packet Pg. 74 Attachment: MOU with West Hollywood (Approval of Resolution 2019-XX Adopting Fiscal Year 2019-2020 Budget Revisions) Attachment B 3 10. A waiver by either Party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 11. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 12. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 13. In the event of any dispute or legal action arising under this Agreement, the prevailing Party shall not be entitled to attorney’s fees. 14. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 15. Each Party signing this Agreement explicitly affirms and provides they have the power and authority to bind their respective Party. [SIGNATURE PAGE FOLLOWS ON PAGE 4] F.6.b Packet Pg. 75 Attachment: MOU with West Hollywood (Approval of Resolution 2019-XX Adopting Fiscal Year 2019-2020 Budget Revisions) Attachment B 4 IN WITNESS WHEREOF, the Parties hereto have executed this MOU as of the dates indicated below. CITY OF GRAND TERRACE, CITY OF WEST HOLLYWOOD, A California municipal corporation A California municipal corporation Date: Date: G. Harold Duffy Paul Arevalo City Manager City Manager ATTEST: ATTEST: Date: Date: Debra L. Thomas Yvonne Quarker City Clerk City Clerk APPROVED AS TO FORM: APPROVED AS TO FORM: Date: Date: Adrian Guerra Michael Jenkins City Attorney City Attorney F.6.b Packet Pg. 76 Attachment: MOU with West Hollywood (Approval of Resolution 2019-XX Adopting Fiscal Year 2019-2020 Budget Revisions) AGENDA REPORT MEETING DATE: June 25, 2019 Council Item TITLE: Adoption of an Amended Resolution Setting a Public Hearing Relating to Rate Increases for Solid Waste Collection, Recycling and Disposal Services, Street Sweeping Services, and Special Services PRESENTED BY: G. Harold Duffey, City Manager RECOMMENDATION: Adopt a Resolution rescinding the previously adopted resolution setting forth a public hearing date of July 9, 2019 and setting the new date of August 13, 2019 to hear matters pertaining to proposed rate increases for solid waste collection, recycling and disposal services, street sweeping services, and special services 2030 VISION STATEMENT: This staff report supports Goal #1 “Ensure Our Fiscal Viability” by ensuring appropriate cost recovery for services. BACKGROUND: The solid waste franchise agreement was originally established between the City and USA Waste. In 2007, USA Waste, dba Waste Management of the Inland Empire, sold the Integrated Waste Management Agreement (Franchise Agreement) to Burrtec Waste Industries (Burrtec), and on June 12, 2007, the Council formally approved the transfer of the franchise agreement. Since then, Burrtec has held the franchise agreement. Refuse rates will typically have some level of adjustment due to Consumer Price Index increases, and/or cost related to services such as delivering waste to the landfill. Additionally, the State of California Department of Resources Recycling and Recovery (CalRecycle) has several mandates pertaining to Commercial Recycling and Organics Recycling that are in effect, and enforcement of these mandates has increased for municipalities. To meet requirements, Burrtec has created rates that the City may adopt to increase compliance. Rate increases are proposed for both reside ntial and commercial customers. The residential component is to be implemented over a two year time frame. DISCUSSION: The last rate adjustment occurred in 2017. Therefore, Burrtec has requested various F.7 Packet Pg. 77 rate increases on the basis that it is absorbing rising costs. The rising costs are due, in part, to increasing disposal and processing costs related to the recycling market (China has stopped receiving plastics) and Title 14 green waste issues. Therefore, in the rates discussed, Council will find that Burrtec has offered to implement a multi-year rate increase. The first residential rate increase will take effect September 1, 2019, and the second adjustment shall be implemented on July 1, 2020. However, commercial rates are proposed to be raised to the appropriate level September 1, 2019. Residential Refuse and Recycling Rate Adjustments Exhibit A of the Resolution shows the propose residential rate adjustments. Exhibit A shows that the proposed rate adjustment will result in the existing residential collection rates changing from $23.98 per month for the 96-gallon cart service to $26.04 per month (8.5%), and from $22.61 per month for the 64-gallon cart service to $24.68 per month (9%) for the first year. The second adjustment shown in Table 1 and Table 2 of Exhibit A shows that the proposed rate adjustment will result in the 2020 residential collection rates changing from $26.04 per month for the 96-gallon cart service to $29.13 per month (12%), and from $24.68 per month for the 64-gallon cart service to $27.67 per month (12%) for the second year. Please note that the rates for green waste disposal increased due to increased processing expense of material and increased travel cost for disposal. The Household Hazardous Waste (HHW) program fee will remain $0.32 per household and the Street Sweeping fee will increase from $0.96 per household to $1.14. The Pavement Impact Fee will be $0.73 per household for a 96-gallon cart and $0.69 per household for the 64-gallon cart. The Franchise fee will be increased slightly from $2.87 per household to $3.11 per household for the 96-gallon cart and from $2.70 to $2.94 for the 64-gallon cart. Table 3 and Table 4 of Exhibit A shows additional services offered to residential customers. Commercial Refuse and Recycling Rate Adjustments Exhibit B of the Resolution shows the proposed rate adjustments for commercial rates. The 3-yard bin service at a frequency of once, twice or three times per week is the most common commercial service throughout the city Burrtec has put forth three (3) options for commercial service rate adjustments. The options are as follows: 1. Option 1: a standard CPI adjustment with administration fee (Exhibit B, Table 1) 2. Option 2: a standard CPI adjustment with administration fee and recycling fee (Exhibit B, Table 1) 3. Option 3: a standard CPI adjustment with equalized rates for commercial F.7 Packet Pg. 78 recycling and organics recycling (Exhibit C) The administration fee covers Burrtec's staff augmentation to assist the City with required Cal Recycle reporting and outreach, and the recycling fee is to bring businesses in the City in compliance with mandatory commercial recycling. For the commercial front-load service, the proposed rate adjustment will result in an approximately 2% rate increase for Option 1 and Option 2 will have a 17% rate increase. Option 3 - equalized rates (Exhibit C) will result in an approximately 27% rate increase. Table 2 of Exhibit B shows the proposed increase for Multi -Family Housing Complexes that are billed commercial rates. Multi-Family Housing complexes will see similar rate increase to commercial bin services. The California Department of Resources Recycling and Recovery (CalRecycle) has significantly increased enforcement of AB 341, which mandates commercial recycling and AB 1826, which mandates organics (food waste) recycling for business that generate more than 4 cubic yards of food waste. The City of Grand Terrace implemented an organics rate with the 2017 rate increase. By implementing the new rate, the City was able to show good faith effort towards compliance with Cal Recycle during the annual audit. Please note that in Fiscal Year 2017-18, Cal Recycle placed some cities in San Bernardino County on compliance orders and ordered them to attend penalty hearings at the State Capital until a solution is put forward to bring commercial customers into compliance with recycling requirements. To date, the City of Grand Terrace has received warning s about low commercial recycling participation, but no compliance orders or p enalties have been received. Because there are few businesses in the City that meet the threshold for organics recycling, staff does not believe that Option 3 is necessary at this time. Staff recommends adopting Option 2 to increase commercial recycling compliance. Special Services Rate Adjustments Exhibit D , Table 1 and Table 2 list proposed rate increases for additional services offered to residential and commercial customers. Burrtec advised the City that these additional services are seldom utilized. The Council is being asked to direct staff to undertake the appropriate measures to notify the citizens of the City regarding the proposed refuse rate adjustments as necessary under Proposition 218. Staff will work with Burrtec to prepare and mail out notices of the proposed rate adjustments, and to schedule a Public Hearing, to be conducted on July 9, 2019, at the hour of 6:00 p.m. at the City Council Chambers, 22795 Barton Road, Grand Terrace California, at which time all persons interested in or objecting F.7 Packet Pg. 79 to the proposed solid waste and recycling rate adjustments will be heard. Proposition 218 requires that at the public hearing, the City Council must consider all protests against the proposed fee adjustments and if protests are received from a majority of the property owners prior to the close of the public hearing, the City Council would not be able to impose the proposed adjustments in the rates. FISCAL IMPACT: There is no fiscal impact to the City by the rate adjustment as it is anticipated tha t the cost of services will be offset by Burrtec customers. ATTACHMENTS: • 2019-xx - Set Public Hearing Refuse Rate Adjustments (DOCX) • Exhibit A- Residential Rates (PDF) • Exhibit B - Commercial Rates (PDF) • Exhibit C- Equalized Rates (PDF) • Exhibit D- Special Services (PDF) APPROVALS: G. Harold Duffey Completed 06/20/2019 4:29 PM City Attorney Completed 06/21/2019 9:36 AM Finance Completed 06/21/2019 9:59 AM City Manager Completed 06/21/2019 10:09 AM City Council Pending 06/25/2019 6:00 PM F.7 Packet Pg. 80 CC Reso 2019-12 Page 1 of 3 May 14, 2019 RESOLUTION NO. 2019-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, RESCINDING RESOLUTION NO. 2019 -12 AND DECLARING ITS INTENTION TO SET A PUBLIC HEARING FOR AUGUST 13, 2019, TO CONSIDER INCREASES TO RESIDENTIAL AND COMMERCIAL SOLID WASTE COLLECTION, RECYCLING AND DISPOSAL SERVICE RATES AND STREET SWEEPING RATES FOR FISCAL YEARS 2019-2020 AND 2020-2021 WHEREAS, the City of Grand Terrace is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California, (hereinafter the “City”); and WHEREAS, the City Council has by previous action entered into a franchise agreement with Burrtec Waste Industries, (hereinafter “Burrtec”), for the collection and disposal of residential and commercial waste within the City; and WHEREAS, Burrtec has requested rate increases to residential and commercial solid waste collection, recycling and disposal service rates and street sweeping rates for fiscal years 2019-2020 and 2020-2021; and WHEREAS, as proposed, the first residential rate increase will take effect September 1, 2019, and the second residential rate increases shall be implemented on July 1, 2020; and WHEREAS, as proposed, commercial rates are proposed to be raised effective September 1, 2019; and WHEREAS, the City Council now desires to declare its intention to conduct a Public Hearing concerning residential and commercial solid waste collection, recycling and disposal service rates and street sweeping rates for Fiscal Years 2019-2020 and 2020-2021, in accordance with Section 6 of Article 13D of the California Constitution. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1: Resolution 2019-12 is herby rescinded. SECTION 2: The preceding recitals are true and correct and incorporated herein by reference. F.7.a Packet Pg. 81 Attachment: 2019-xx - Set Public Hearing Refuse Rate Adjustments (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate CC Reso 2019-12 Page 2 of 3 May 14, 2019 SECTION 3: The City Council will consider an adjustment in the service rates for the provision of residential and commercial solid waste collection, recycling and disposal services, along with street sweeping rates, and it has deemed that the proposed refuse rate adjustments, set forth in "Exhibit A", “Exhibit B” and “Exhibit C” are appropriate and reasonable. All other rates existing and not separately identified in “Exhibit A”, “Exhibit B” and “Exhibit C” shall remain the same. The Council will give consideration to new rates identified in “Exhibit D”. SECTION 4: The City Council hereby declares its intention to conduct a Public Hearing concerning residential and commercial solid waste collection, recycling and disposal service rates, and street sweeping rates, for Fiscal Years 2019-2020 and 2020- 2021, in accordance with Section 6 of Article 13D of the California Constit ution; and, notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, August 13, 2019 at 6:00 P.M., or as soon thereafter as feasible, in the City Council Chambers located at 22795 Barton Road, Grand Terrace California. At the Public Hearing, all interested persons shall be afforded the opportunity to hear and be heard. SECTION 5: The City Council hereby authorizes and directs the City’s franchise refuse collection services provider, Burrtec Waste Industries, Inc., to provide notice to all residential and commercial refuse/recycling and street sweeping customers within the City, not less than forty-five (45) days prior to the Public Hearing, pursuant to California Government Code Section 53755 and S ection 6 of Article 13D of the California Constitution. SECTION 6: The City Clerk shall certify to the passage and adoption of this Resolution. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 25th day of June 2019. __________________________ Darcy McNaboe, Mayor ATTEST: Debra L. Thomas, City Clerk APPROVED AS TO FORM: F.7.a Packet Pg. 82 Attachment: 2019-xx - Set Public Hearing Refuse Rate Adjustments (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate CC Reso 2019-12 Page 3 of 3 May 14, 2019 Adrian R. Guerra, City Attorney F.7.a Packet Pg. 83 Attachment: 2019-xx - Set Public Hearing Refuse Rate Adjustments (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Burrtec Waste Industries, Inc City of Grand Terrace Residential & Multi Family Barrel Rates Effective July 1, 2019 Changes Current Proposed Proposed from Standard 96 Gallon Barrel 2017 2019 2020 2019 Components Rate Rate Rate $ Service a/13.58$ 14.01$ 14.33$ 0.32$ 1)Landfill / Disposal Transfer 3.41 3.58 3.83 2)Green Waste Disposal 2.17 3.04 2.90 3)MRF Fee 0.11 0.97 Disposal/Processing Total 5.58$ 6.73$ 7.70$ 0.97$ 2018 Service & Disp./Proc. Catch-Up Fee 1.32 1.32$ Franchise Fees 15.0%2.87 3.11 3.50 Pavement Impact Fee 3.5%0.67 0.73 0.82 Household Haz Waste 0.32$ 0.32 0.32 0.32 Street Sweeping 0.96$ 0.96 1.14 1.14 City Fees Total 4.82$ 5.30$ 5.78$ 0.48$ Total 23.98$ 26.04$ 29.13$ 3.09$ Changes vs Current Rate 0.13$ 2.06$ 5.15$ 0.55%8.59%21.48% 2017 2019 2020 a/February CPI 2.7%3.6%2.5% 90.0%2.4%3.2%2.3% 1)Landfill / Disposal Transfer WDA Fee per Ton 37.13$ 38.21$ 39.55$ Annual Refuse Tons/House 1.1020 1.1255 1.1624 2)Green Waste Disposal Agua Mansa Fee per Ton 40.47$ 48.60$ 50.09$ Annual GW Tons/House 0.6440 0.7512 0.6940 3)MRF Fee Processing Cost per Ton 4.40$ 38.11$ Annual Rec Tons/House 0.2954 0.3062 F.7.b Packet Pg. 84 Attachment: Exhibit A- Residential Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) Burrtec Waste Industries, Inc City of Grand Terrace Residential & Multi Family Barrel Rates Effective July 1, 2019 Changes Current Proposed Proposed from Standard 64 Gallon Barrel 2017 2019 2020 2019 Components Rate Rate Rate $ Service a/13.58$ 14.01$ 14.33$ 0.32$ 1)Landfill / Disposal Transfer 2.25 2.43 2.59 2)Green Waste Disposal 2.17 3.04 2.90 3)MRF Fee 0.11 0.97 Disposal/Processing Total 4.42$ 5.58$ 6.46$ 0.88$ 2018 Service & Disp./Proc. Catch-Up Fee 1.33 1.33$ Franchise Fees 15.0%2.70 2.94 3.32 Pavement Impact Fee 3.5%0.63 0.69 0.77 Household Haz Waste 0.32$ 0.32 0.32 0.32 Street Sweeping 0.96$ 0.96 1.14 1.14 City Fees Total 4.61$ 5.09$ 5.55$ 0.46$ Total 22.61$ 24.68$ 27.67$ 2.99$ Changes vs Current Rate 0.05$ 2.07$ 5.06$ 0.22%9.16%22.38% 2017 2019 2020 a/February CPI 2.7%3.6%2.5% 90.0%2.4%3.2%2.3% 1)Landfill / Disposal Transfer WDA Fee per Ton 37.13$ 38.21$ 39.55$ Annual Refuse Tons/House 0.7282 0.7620 0.7870 2)Green Waste Disposal Agua Mansa Fee per Ton 40.47$ 48.60$ 50.09$ Annual GW Tons/House 0.6440 0.7512 0.6940 3)MRF Fee Processing Cost per Ton 4.40$ 38.11$ Annual Rec Tons/House 0.2954 0.3062 F.7.b Packet Pg. 85 Attachment: Exhibit A- Residential Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) Burrtec Waste Industries, Inc City of Grand Terrace Senior Rate Discontinued Effective July 1, 2019 Current Proposed Proposed Senior 64 Gallon Barrel 2017 2019 2020 Changes from 2019 Components Rate Rate Rate $ Service a/12.92$ 13.57$ 14.33$ 0.76$ 1)Landfill / Disposal Transfer 2.25 2.43 2.59 2)Green Waste Disposal 2.17 3.04 2.90 3)MRF Fee 0.11 0.97 Disposal/Processing Total 4.42$ 5.58$ 6.46$ 0.88$ 2018 Service & Disp./Proc. Catch-Up Fee 1.33 1.33$ Franchise Fees 15.0%2.60 2.87 3.32 Pavement Impact Fee 3.5%0.61 0.67 0.77 Household Haz Waste 0.32$ 0.32 0.32 0.32 Street Sweeping 0.96$ 0.96 1.14 1.14 City Fees Total 4.49$ 5.00$ 5.55$ 0.55$ Total 21.83$ 24.15$ 27.67$ 3.52$ Changes vs Current Rate 0.39$ 2.32$ 3.52$ 1.82%10.63%14.58% Memo Per Mike A.: - City has not approved a Sr Rate, customers were grandfathered (113 in 2016) - Rate to be phased out in three years - the same as regular 64Gal Barrel by 2019 - Rate phased out in 2019. For 2019 use the same rate as 64 gallon barrel. - Do not include in 218 Notice 2017 2019 2020 a/February CPI 2.7%3.6%2.5% 90.0%2.4%3.2%2.3% 1)Landfill / Disposal Transfer WDA Fee per Ton 37.13$ 38.21$ Annual Refuse Tons/House 0.7282 0.7620 2)Green Waste Disposal Agua Mansa Fee per Ton 40.47$ 48.60$ Annual GW Tons/House 0.6440 0.7512 3)MRF Fee Processing Cost per Ton -$ 4.40$ Annual Rec Tons/House - 0.2954 F.7.b Packet Pg. 86 Attachment: Exhibit A- Residential Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) Burrtec Waste Industries, Inc City of Grand Terrace Commercial Barrel Rate Effective July 1, 2019 Changes Current Proposed Proposed from Standard 96 Gallon Barrel 2017 2019 2020 2019 Components Rate Rate Rate $ Service a/24.41$ 25.19$ 25.77$ 0.58$ 1)Landfill / Disposal Transfer 3.41 3.58 3.83 2)MRF Fee 0.11 0.97 3)Compliance Fee 0.46 Disposal/Processing Total 3.41$ 3.69$ 5.26$ 1.57$ 2018 Service & Disp./Proc. Catch-Up Fee 0.88 0.88$ Franchise Fees 15.0%4.17 4.33 4.79 Pavement Impact Fee 3.5%0.97 1.01 1.12 Household Haz Waste 0.32$ 0.32 0.32 0.32 Street Sweeping 0.96$ 0.96 1.14 1.14 City Fees Total 6.42$ 6.80$ 7.37$ 0.57$ Total 34.24$ 35.68$ 39.28$ 3.60$ Changes vs Current Rate 1.37$ 1.44$ 5.04$ 4.17%4.21%14.72% 2017 2019 2020 a/February CPI 2.7%3.6%2.5% 90.0%2.4%3.2%2.3% 1)Landfill / Disposal Transfer WDA Fee per Ton 37.13$ 38.21$ 39.55$ Annual Refuse Tons/House 1.1020 1.1255 1.1624 2)MRF Fee Processing Cost per Ton 4.40$ 38.11$ Annual Rec Tons/House 0.2954 0.3062 F.7.b Packet Pg. 87 Attachment: Exhibit A- Residential Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) 2019 Grand Terrace Rates 3-12-19.xlsx Burrtec Waste Industries, Inc. City of Grand Terrace Effective July 1, 2019 Additional Services and Fees - Residential Changes from current Current Proposed Proposed 2017 Components 2017 Rate 2019 Rate 2020 Rate $ Extra Cart - 64 Gal Service and Disposal a/8.28$ 8.54$ 8.74$ Franchise Fees (1)1.24 1.28 1.31 Pavement Impact Fee (2)0.29 0.30 0.31 Customer Rate 9.81$ 10.12$ 10.36$ 0.55$ Extra Cart - 96 Gal Service and Disposal a/10.19$ 10.52$ 10.76$ Franchise Fees (1)1.53 1.58 1.61 Pavement Impact Fee (2)0.36 0.37 0.38 Customer Rate 12.08$ 12.47$ 12.75$ 0.67$ Extra Cart - Recycling Service and Disposal a/1.91$ 1.97$ 2.02$ Franchise Fees (1)0.29 0.30 0.30 Pavement Impact Fee (2)0.07 0.07 0.07 Customer Rate 2.27$ 2.34$ 2.39$ 0.12$ Extra Cart - Greenwaste Service and Disposal a/1.91$ 1.97$ 2.02$ Franchise Fees (1)0.29 0.30 0.30 Pavement Impact Fee (2)0.07 0.07 0.07 Customer Rate 2.27$ 2.34$ 2.39$ 0.12$ Backyard/Sideyard Service and Disposal a/11.79$ 12.17$ 12.45$ Franchise Fees (1)1.77 1.83 1.87 Pavement Impact Fee (2)0.41 0.43 0.44 Customer Rate 13.97$ 14.43$ 14.76$ 0.79$ Extra Pick-Up On Site - Barrels Service and Disposal a/8.83$ 9.11$ 9.32$ Franchise Fees (1)1.32 1.37 1.40 Pavement Impact Fee (2)0.31 0.32 0.33 Customer Rate 10.46$ 10.80$ 11.05$ 0.59$ Extra Pick-Up Unscheduled - Barrels Service and Disposal a/17.66$ 18.23$ 18.65$ Franchise Fees (1)2.65 2.73 2.80 Pavement Impact Fee (2)0.62 0.64 0.65 Customer Rate 20.93$ 21.60$ 22.10$ 1.17$ General References: (1)15% of sum of service and disposal (2)3.5% of sum of service and disposal Other Notes 2017 2019 2020 a/February CPI 2.7%3.6%2.5% 90.0%2.4%3.2%2.3% F.7.b Packet Pg. 88 Attachment: Exhibit A- Residential Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) 2019 Grand Terrace Rates 3-12-19.xlsx 5 Comm Recycling Bin Burrtec Waste Industries, Inc. City of Grand Terrace Effective July 1, 2019 Commercial Commingled Recycling Bin Service 90% of CPI Changes CPI 3.5%2.5%2018 Lbs/Yrd 3.5%from 2.4%15.0%Pavement 90% of Service &71.00 15.0%Pavement current from Bin Franchise Impact Total 2.3%Processing Processing Franchise Impact Total 2017 2017 Size Freq Service*Fee (a)Fee (b)Rate Service*Catch Up 39.89$ Fee (a)Fee (b)Rate $% 2 1 59.71 8.96 2.09 70.76 63.04 4.63 12.27 11.99 2.80 94.73 23.97 33.88% 2 2 105.44 15.82 3.69 124.95 111.31 8.88 24.54 21.71 5.07 171.51 46.56 37.26% 3 1 76.60 11.49 2.68 90.77 80.87 6.60 18.41 15.88 3.71 125.47 34.70 38.23% 3 2 139.60 20.94 4.89 165.43 147.38 12.84 36.82 29.56 6.90 233.50 68.07 41.15% 4 1 101.03 15.15 3.54 119.72 106.66 8.77 24.54 21.00 4.90 165.87 46.15 38.55% 4 2 188.32 28.25 6.59 223.16 198.82 17.18 49.09 39.76 9.28 314.13 90.97 40.76% 6 1 144.19 21.63 5.05 170.87 152.22 12.96 36.82 30.30 7.07 239.37 68.50 40.09% 6 2 274.44 41.17 9.61 325.22 289.73 25.55 73.63 58.34 13.61 460.86 135.64 41.71% ----- * Service fee is adjusted at 90% of CPI (a) 15% of the sum of service and disposal (b) 3.5% of the sum of service and disposal 2017 Rate Components Proposed 2019 Rate Components F.7.c Packet Pg. 89 Attachment: Exhibit B - Commercial Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) 2019 Grand Terrace Rates 3-12-19.xlsx 6 Comm Refuse Burrtec Waste Industries, Inc. City of Grand Terrace Effective July 1, 2019 Commercial Bin Service 90% of CPI Changes CPI Changes CPI 3.5%0.500$ 2.5%2018 Fee per Yard Lbs/Yr 3.5%0.570$ from 2.5%2018 Fee per Yard Lbs/Yr 3.5%0.570$ from 2.4%159.00 15.0%Pavement Street 90% of Service &$0.15 131.00 15.0%Pavement Street current from 90% of Service &$0.15 131.00 Recycling 15.0%Pavement Street current from Bin 37.13$ Franchise Impact Sweeping Total 2.3%Disposal Compliance 39.55$ Franchise Impact Sweeping Total 2017 2017 2.3%Disposal Compliance 39.55$ 1.73$ Franchise Impact Sweeping Total 2017 2017 Size Freq Service*Disposal Fee (a)Fee (b)Fee Rate Service*Catch Up Fee to Burrtec Disposal Fee (a)Fee (b)Fee Rate $%Service*Catch Up Fee to Burrtec Disposal Fee Fee (a)Fee (b)Fee Rate $% 2 1 59.71 25.58 12.79 2.99 4.33 105.40 63.04 0.28 1.30 22.45 13.06 3.05 4.94 108.12 2.72 2.58%63.04 0.28 1.30 22.45 14.99 15.31 3.57 4.94 125.88 20.48 19.43% 2 2 105.44 51.17 23.49 5.48 8.67 194.25 111.31 0.18 2.60 44.90 23.85 5.56 9.88 198.28 4.03 2.07%111.31 0.18 2.60 44.90 29.99 28.35 6.61 9.88 233.82 39.57 20.37% 2 3 165.14 76.75 36.28 8.47 13.00 299.64 174.34 0.47 3.90 67.35 36.91 8.61 14.82 306.40 6.76 2.26%174.34 0.47 3.90 67.35 44.98 43.66 10.19 14.82 359.71 60.07 20.05% 2 4 224.86 102.33 49.08 11.45 17.33 405.05 237.40 0.75 5.20 89.80 49.97 11.66 19.76 414.54 9.49 2.34%237.40 0.75 5.20 89.80 59.97 58.97 13.76 19.76 485.61 80.56 19.89% 2 5 284.02 127.91 61.79 14.42 21.67 509.81 299.85 1.02 6.50 112.26 62.94 14.69 24.70 521.96 12.15 2.38%299.85 1.02 6.50 112.26 74.97 74.19 17.31 24.70 610.80 100.99 19.81% 2 6 343.99 153.50 74.62 17.41 26.00 615.52 363.17 1.30 7.80 134.71 76.05 17.74 29.64 630.41 14.89 2.42%363.17 1.30 7.80 134.71 89.96 89.54 20.89 29.64 737.01 121.49 19.74% Add. Pickup (on-site)7.15 5.90 1.96 0.46 0.00 15.47 7.55 (0.11)5.18 1.89 0.44 0.00 14.95 (0.52)-3.36%7.55 (0.11)5.18 3.46 2.41 0.56 0.00 19.05 3.58 23.14% Add. Pickup (unsched)22.35 5.90 4.24 0.99 0.00 33.48 23.60 0.30 5.18 4.36 1.02 0.00 34.46 0.98 2.93%23.60 0.30 5.18 3.46 4.88 1.14 0.00 38.56 5.08 15.17% 3 1 76.60 38.37 17.25 4.02 6.50 142.74 80.87 0.08 1.95 33.68 17.49 4.08 7.41 145.56 2.82 1.98%80.87 0.08 1.95 33.68 22.49 20.86 4.87 7.41 172.21 29.47 20.65% 3 2 139.60 76.75 32.45 7.57 13.00 269.37 147.38 (0.21)3.90 67.35 32.76 7.64 14.82 273.64 4.27 1.59%147.38 (0.21)3.90 67.35 44.98 39.51 9.22 14.82 326.95 57.58 21.38% 3 3 216.31 115.12 49.71 11.60 19.50 412.24 228.36 (0.13)5.85 101.03 50.27 11.73 22.23 419.34 7.10 1.72%228.36 (0.13)5.85 101.03 67.47 60.39 14.09 22.23 499.29 87.05 21.12% 3 4 301.90 153.50 68.31 15.94 26.00 565.65 318.73 0.18 7.80 134.71 69.21 16.15 29.64 576.42 10.77 1.90%318.73 0.18 7.80 134.71 89.96 82.71 19.30 29.64 683.03 117.38 20.75% 3 5 369.60 191.87 84.22 19.65 32.50 697.84 390.20 0.02 9.75 168.38 85.25 19.89 37.05 710.54 12.70 1.82%390.20 0.02 9.75 168.38 112.45 102.12 23.83 37.05 843.80 145.96 20.92% 3 6 445.99 230.24 101.43 23.67 39.00 840.33 470.85 0.09 11.70 202.06 102.71 23.96 44.46 855.83 15.50 1.84%470.85 0.09 11.70 202.06 134.94 122.95 28.69 44.46 1,015.74 175.41 20.87% Add. Pickup (on-site)7.15 8.85 2.40 0.56 0.00 18.96 7.55 (0.26)7.77 2.26 0.53 0.00 17.85 (1.11)-5.85%7.55 (0.26)7.77 5.19 3.04 0.71 0.00 24.00 5.04 26.58% Add. Pickup (unsched)22.35 8.85 4.68 1.09 0.00 36.97 23.60 0.15 7.77 4.73 1.10 0.00 37.35 0.38 1.03%23.60 0.15 7.77 5.19 5.51 1.28 0.00 43.50 6.53 17.66% 4 1 101.03 51.17 22.83 5.33 8.67 189.03 106.66 0.07 2.60 44.90 23.13 5.40 9.88 192.64 3.61 1.91%106.66 0.07 2.60 44.90 29.99 27.63 6.45 9.88 228.18 39.15 20.71% 4 2 188.32 102.33 43.60 10.17 17.33 361.75 198.82 (0.22)5.20 89.80 44.04 10.28 19.76 367.68 5.93 1.64%198.82 (0.22)5.20 89.80 59.97 53.04 12.37 19.76 438.74 76.99 21.28% 4 3 289.45 153.50 66.44 15.50 26.00 550.89 305.58 (0.16)7.80 134.71 67.19 15.68 29.64 560.44 9.55 1.73%305.58 (0.16)7.80 134.71 89.96 80.68 18.83 29.64 667.04 116.15 21.08% 4 4 390.59 204.66 89.29 20.83 34.67 740.04 412.36 (0.08)10.40 179.61 90.34 21.08 39.52 753.23 13.19 1.78%412.36 (0.08)10.40 179.61 119.95 108.34 25.28 39.52 895.38 155.34 20.99% 4 5 493.60 255.83 112.41 26.23 43.33 931.40 521.12 0.05 13.00 224.51 113.80 26.55 49.40 948.43 17.03 1.83%521.12 0.05 13.00 224.51 149.93 136.29 31.80 49.40 1,126.10 194.70 20.90% 4 6 591.81 306.99 134.82 31.46 52.00 1,117.08 624.80 0.04 15.60 269.41 136.48 31.84 59.28 1,137.45 20.37 1.82%624.80 0.04 15.60 269.41 179.92 163.47 38.14 59.28 1,350.66 233.58 20.91% Add. Pickup (on-site)7.15 11.81 2.84 0.66 0.00 22.46 7.55 (0.42)10.36 2.62 0.61 0.00 20.72 (1.74)-7.75%7.55 (0.42)10.36 6.92 3.66 0.85 0.00 28.92 6.46 28.76% Add. Pickup (unsched)22.35 11.81 5.12 1.20 0.00 40.48 23.60 (0.01)10.36 5.09 1.19 0.00 40.23 (0.25)-0.62%23.60 (0.01)10.36 6.92 6.13 1.43 0.00 48.43 7.95 19.64% 6 1 144.19 76.75 33.14 7.73 13.00 274.81 152.22 (0.09)3.90 67.35 33.51 7.82 14.82 279.53 4.72 1.72%152.22 (0.09)3.90 67.35 44.98 40.25 9.39 14.82 332.82 58.01 21.11% 6 2 274.44 153.50 64.19 14.98 26.00 533.11 289.73 (0.56)7.80 134.71 64.75 15.11 29.64 541.18 8.07 1.51%289.73 (0.56)7.80 134.71 89.96 78.25 18.26 29.64 647.79 114.68 21.51% 6 3 419.18 230.24 97.41 22.73 39.00 808.56 442.54 (0.63)11.70 202.06 98.35 22.95 44.46 821.43 12.87 1.59%442.54 (0.63)11.70 202.06 134.94 118.59 27.67 44.46 981.33 172.77 21.37% 6 4 562.84 306.99 130.47 30.44 52.00 1,082.74 594.21 (0.73)15.60 269.41 131.77 30.75 59.28 1,100.29 17.55 1.62%594.21 (0.73)15.60 269.41 179.92 158.76 37.04 59.28 1,313.49 230.75 21.31% 6 5 707.04 383.74 163.62 38.18 65.00 1,357.58 746.45 (0.82)19.50 336.77 165.29 38.57 74.10 1,379.86 22.28 1.64%746.45 (0.82)19.50 336.77 224.90 199.02 46.44 74.10 1,646.36 288.78 21.27% 6 6 851.23 460.49 196.76 45.91 78.00 1,632.39 898.67 (0.91)23.40 404.12 198.79 46.38 88.92 1,659.37 26.98 1.65%898.67 (0.91)23.40 404.12 269.88 239.27 55.83 88.92 1,979.18 346.79 21.24% Add. Pickup (on-site)7.15 17.71 3.73 0.87 0.00 29.46 7.55 (0.72)15.54 3.36 0.78 0.00 26.51 (2.95)-10.01%7.55 (0.72)15.54 10.38 4.91 1.15 0.00 38.81 9.35 31.74% Add. Pickup (unsched)22.35 17.71 6.01 1.40 0.00 47.47 23.60 (0.31)15.54 5.82 1.36 0.00 46.01 (1.46)-3.08%23.60 (0.31)15.54 10.38 7.38 1.72 0.00 58.31 10.84 22.84% Add'l Charges T-Bins - 3 yards (COD)22.35 38.37 9.11 2.13 N/A 71.96 23.60 (1.37)33.68 8.39 1.96 N/A 66.26 (5.70)-7.92%23.60 (1.37)33.68 22.49 11.76 2.74 N/A 92.90 20.94 29.10% 96 Gal Commingled Recycling N/C N/C N/A N/C N/A Extra Recycling Barrel 2.17 2.29 0.12 5.53%2.29 0.12 5.53% Locks Burned Bin 283.45 42.52 N/A N/A 325.97 299.25 7.56 46.02 N/A N/A 352.83 26.86 8.24%299.25 7.56 46.02 N/A N/A 352.83 26.86 8.24% Exchanges 59.73 8.96 N/A N/A 68.69 63.06 1.59 9.70 N/A N/A 74.35 5.66 8.24%63.06 1.59 9.70 N/A N/A 74.35 5.66 8.24% Lock Rental (Monthly)12.15 1.82 N/A N/A 13.97 12.83 0.32 1.97 N/A N/A 15.12 1.15 8.23%12.83 0.32 1.97 N/A N/A 15.12 1.15 8.23% Lost or Stolen Bin 506.15 75.92 N/A N/A 582.07 534.36 13.50 82.18 N/A N/A 630.04 47.97 8.24%534.36 13.50 82.18 N/A N/A 630.04 47.97 8.24% Overage 33.99 5.10 N/A N/A 39.09 35.89 0.91 5.52 N/A N/A 42.32 3.23 8.26%35.89 0.91 5.52 N/A N/A 42.32 3.23 8.26% Replaced Key 5.06 0.76 N/A N/A 5.82 5.34 0.13 0.82 N/A N/A 6.29 0.47 8.08%5.34 0.13 0.82 N/A N/A 6.29 0.47 8.08% Replaced Lock 25.30 3.80 N/A N/A 29.10 26.71 0.67 4.11 N/A N/A 31.49 2.39 8.21%26.71 0.67 4.11 N/A N/A 31.49 2.39 8.21% ----- * Service fee is adjusted at 90% of CPI (a) 15% of the sum of service and disposal (b) 3.5% of the sum of service and disposal 2017 Rate Components Proposed 2019 Rate Components 7/1/19 - Option 2Proposed 2019 Rate Components - Option 1 F.7.c Packet Pg. 90 Attachment: Exhibit B - Commercial Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) 2019 Grand Terrace Rates 3-12-19.xlsx 7 MF Refuse Burrtec Waste Industries, Inc. City of Grand Terrace Effective July 1, 2019 Multi-Family Commercial Bin Service 90% of CPI Changes CPI Changes CPI 3.5%0.160$ 0.500$ 2.5%2018 Fee per Yard Lbs/Yr 3.5%0.160$ 0.570$ from 2.5%2018 Fee per Yard Lbs/Yr 3.5%0.160$ 0.570$ from 2.4%159.00 15.0%Pavement Street 90% of Service &$0.15 131.00 15.0%Pavement Street current from 90% of Service &$0.15 131.00 Recycling 15.0%Pavement Street current from Bin 37.13$ Franchise Impact HHW Sweeping Total 2.3%Disposal Compliance 39.55$ Franchise Impact HHW Sweeping Total 2017 2017 2.3%Disposal Compliance 39.55$ 1.73$ Franchise Impact HHW Sweeping Total 2017 2017 Size Freq Service*Disposal Fee (a)Fee (b)Fee Fee Rate Service*Catch Up Fee to Burrtec Disposal Fee (a)Fee (b)Fee Fee Rate $%Service*Catch Up Fee to Burrtec Disposal Fee Fee (a)Fee (b)Fee Fee Rate $% 2 1 59.71 25.58 12.79 2.99 1.39 4.33 106.79 63.04 0.28 1.30 22.45 13.06 3.05 1.39 4.94 109.51 2.72 2.55%63.04 0.28 1.30 22.45 14.99 15.31 3.57 1.39 4.94 127.27 20.48 19.18% 2 2 105.44 51.16 23.49 5.48 2.77 8.67 197.01 111.31 0.19 2.60 44.90 23.85 5.57 2.77 9.88 201.07 4.06 2.06%111.31 0.19 2.60 44.90 29.99 28.35 6.61 2.77 9.88 236.60 39.59 20.10% 2 3 165.14 76.74 36.28 8.47 4.16 13.00 303.79 174.34 0.47 3.90 67.35 36.91 8.61 4.16 14.82 310.56 6.77 2.23%174.34 0.47 3.90 67.35 44.98 43.66 10.19 4.16 14.82 363.87 60.08 19.78% 2 4 224.86 102.32 49.08 11.45 5.55 17.33 410.59 237.40 0.77 5.20 89.80 49.98 11.66 5.55 19.76 420.12 9.53 2.32%237.40 0.77 5.20 89.80 59.97 58.97 13.76 5.55 19.76 491.18 80.59 19.63% 2 5 284.02 127.90 61.79 14.42 6.93 21.67 516.73 299.85 1.03 6.50 112.25 62.94 14.69 6.93 24.70 528.89 12.16 2.35%299.85 1.03 6.50 112.25 74.97 74.19 17.31 6.93 24.70 617.73 101.00 19.55% 2 6 343.99 153.48 74.62 17.41 8.32 26.00 623.82 363.17 1.32 7.80 134.70 76.05 17.74 8.32 29.64 638.74 14.92 2.39%363.17 1.32 7.80 134.70 89.96 89.54 20.89 8.32 29.64 745.34 121.52 19.48% Add. Pickup (on-site)7.15 5.90 1.96 0.46 0.00 0.00 15.47 7.55 (0.11)5.18 1.89 0.44 0.00 0.00 14.95 (0.52)-3.36%7.55 (0.11)5.18 3.46 2.41 0.56 0.00 0.00 19.05 3.58 23.14% Add. Pickup (unsched)22.35 5.90 4.24 0.99 0.00 0.00 33.48 23.60 0.30 5.18 4.36 1.02 0.00 0.00 34.46 0.98 2.93%23.60 0.30 5.18 3.46 4.88 1.14 0.00 0.00 38.56 5.08 15.17% 3 1 76.60 38.37 17.25 4.02 2.08 6.50 144.82 80.87 0.08 1.95 33.68 17.49 4.08 2.08 7.41 147.64 2.82 1.95%80.87 0.08 1.95 33.68 22.49 20.86 4.87 2.08 7.41 174.29 29.47 20.35% 3 2 139.60 76.74 32.45 7.57 4.16 13.00 273.52 147.38 (0.21)3.90 67.37 32.77 7.65 4.16 14.82 277.84 4.32 1.58%147.38 (0.21)3.90 67.37 44.98 39.51 9.22 4.16 14.82 331.13 57.61 21.06% 3 3 216.31 115.11 49.71 11.60 6.24 19.50 418.47 228.36 (0.13)5.85 101.05 50.27 11.73 6.24 22.23 425.60 7.13 1.70%228.36 (0.13)5.85 101.05 67.47 60.39 14.09 6.24 22.23 505.55 87.08 20.81% 3 4 301.90 153.48 68.31 15.94 8.32 26.00 573.95 318.73 0.18 7.80 134.74 69.22 16.15 8.32 29.64 584.78 10.83 1.89%318.73 0.18 7.80 134.74 89.96 82.71 19.30 8.32 29.64 691.38 117.43 20.46% 3 5 369.60 191.85 84.22 19.65 10.40 32.50 708.22 390.20 0.02 9.75 168.42 85.26 19.89 10.40 37.05 720.99 12.77 1.80%390.20 0.02 9.75 168.42 112.45 102.13 23.83 10.40 37.05 854.25 146.03 20.62% 3 6 445.99 230.22 101.43 23.67 12.48 39.00 852.79 470.85 0.09 11.70 202.11 102.71 23.97 12.48 44.46 868.37 15.58 1.83%470.85 0.09 11.70 202.11 134.94 122.95 28.69 12.48 44.46 1,028.27 175.48 20.58% Add. Pickup (on-site)7.15 8.85 2.40 0.56 0.00 0.00 18.96 7.55 (0.26)7.77 2.26 0.53 0.00 0.00 17.85 (1.11)-5.85%7.55 (0.26)7.77 5.19 3.04 0.71 0.00 0.00 24.00 5.04 26.58% Add. Pickup (unsched)22.35 8.85 4.68 1.09 0.00 0.00 36.97 23.60 0.15 7.77 4.73 1.10 0.00 0.00 37.35 0.38 1.03%23.60 0.15 7.77 5.19 5.51 1.28 0.00 0.00 43.50 6.53 17.66% 4 1 101.03 51.17 22.83 5.33 2.77 8.67 191.80 106.66 0.07 2.60 44.90 23.13 5.40 2.77 9.88 195.41 3.61 1.88%106.66 0.07 2.60 44.90 29.99 27.63 6.45 2.77 9.88 230.95 39.15 20.41% 4 2 188.32 102.34 43.60 10.17 5.55 17.33 367.31 198.82 (0.22)5.20 89.80 44.04 10.28 5.55 19.76 373.23 5.92 1.61%198.82 (0.22)5.20 89.80 59.97 53.04 12.37 5.55 19.76 444.29 76.98 20.96% 4 3 289.45 153.51 66.44 15.50 8.32 26.00 559.22 305.58 (0.16)7.80 134.70 67.19 15.68 8.32 29.64 568.75 9.53 1.70%305.58 (0.16)7.80 134.70 89.96 80.68 18.83 8.32 29.64 675.35 116.13 20.77% 4 4 390.59 204.68 89.29 20.83 11.09 34.67 751.15 412.36 (0.08)10.40 179.60 90.34 21.08 11.09 39.52 764.31 13.16 1.75%412.36 (0.08)10.40 179.60 119.95 108.33 25.28 11.09 39.52 906.45 155.30 20.67% 4 5 493.60 255.85 112.42 26.23 13.87 43.33 945.30 521.12 0.04 13.00 224.50 113.80 26.55 13.87 49.40 962.28 16.98 1.80%521.12 0.04 13.00 224.50 149.93 136.29 31.80 13.87 49.40 1,139.95 194.65 20.59% 4 6 591.81 307.02 134.82 31.46 16.64 52.00 1,133.75 624.80 0.03 15.60 269.40 136.47 31.84 16.64 59.28 1,154.06 20.31 1.79%624.80 0.03 15.60 269.40 179.92 163.46 38.14 16.64 59.28 1,367.27 233.52 20.60% Add. Pickup (on-site)7.15 11.81 2.84 0.66 0.00 0.00 22.46 7.55 (0.42)10.36 2.62 0.61 0.00 0.00 20.72 (1.74)-7.75%7.55 (0.42)10.36 6.92 3.66 0.85 0.00 0.00 28.92 6.46 28.76% Add. Pickup (unsched)22.35 11.81 5.12 1.20 0.00 0.00 40.48 23.60 (0.01)10.36 5.09 1.19 0.00 0.00 40.23 (0.25)-0.62%23.60 (0.01)10.36 6.92 6.13 1.43 0.00 0.00 48.43 7.95 19.64% 6 1 144.19 76.75 33.14 7.73 4.16 13.00 278.97 152.22 (0.09)3.90 67.35 33.51 7.82 4.16 14.82 283.69 4.72 1.69%152.22 (0.09)3.90 67.35 44.98 40.25 9.39 4.16 14.82 336.98 58.01 20.79% 6 2 274.44 153.50 64.19 14.98 8.32 26.00 541.43 289.73 (0.55)7.80 134.70 64.75 15.11 8.32 29.64 549.50 8.07 1.49%289.73 (0.55)7.80 134.70 89.96 78.25 18.26 8.32 29.64 656.11 114.68 21.18% 6 3 419.18 230.25 97.41 22.73 12.48 39.00 821.05 442.54 (0.63)11.70 202.05 98.35 22.95 12.48 44.46 833.90 12.85 1.57%442.54 (0.63)11.70 202.05 134.94 118.59 27.67 12.48 44.46 993.80 172.75 21.04% 6 4 562.84 307.00 130.48 30.44 16.64 52.00 1,099.40 594.21 (0.73)15.60 269.40 131.77 30.75 16.64 59.28 1,116.92 17.52 1.59%594.21 (0.73)15.60 269.40 179.92 158.76 37.04 16.64 59.28 1,330.12 230.72 20.99% 6 5 707.04 383.75 163.62 38.18 20.80 65.00 1,378.39 746.45 (0.81)19.50 336.75 165.28 38.57 20.80 74.10 1,400.64 22.25 1.61%746.45 (0.81)19.50 336.75 224.90 199.02 46.44 20.80 74.10 1,667.15 288.76 20.95% 6 6 851.23 460.50 196.76 45.91 24.96 78.00 1,657.36 898.67 (0.90)23.40 404.10 198.79 46.38 24.96 88.92 1,684.32 26.96 1.63%898.67 (0.90)23.40 404.10 269.88 239.27 55.83 24.96 88.92 2,004.13 346.77 20.92% Add. Pickup (on-site)7.15 17.71 3.73 0.87 0.00 0.00 29.46 7.55 (0.72)15.54 3.36 0.78 0.00 0.00 26.51 (2.95)-10.01%7.55 (0.72)15.54 10.38 4.91 1.15 0.00 0.00 38.81 9.35 31.74% Add. Pickup (unsched)22.35 17.71 6.01 1.40 0.00 0.00 47.47 23.60 (0.31)15.54 5.82 1.36 0.00 0.00 46.01 (1.46)-3.08%23.60 (0.31)15.54 10.38 7.38 1.72 0.00 0.00 58.31 10.84 22.84% Add'l Charges T-Bins - 3 yards (COD)22.35 38.37 9.11 2.13 N/A N/A 71.96 23.60 (1.37)33.68 8.39 1.96 N/A N/A 66.26 (5.70)-7.92%23.60 (1.37)33.68 22.49 11.76 2.74 N/A N/A 92.90 20.94 29.10% 96 Gal Commingled Recycling N/C N/C N/C Extra Recycling Barrel 2.17 2.29 0.12 5.53%2.22 0.05 2.30% Locks Burned Bin 283.45 42.52 N/A N/A N/A 325.97 299.25 7.56 46.02 N/A N/A N/A 352.83 26.86 8.24%299.25 7.56 46.02 N/A N/A N/A 352.83 26.86 8.24% Exchanges 59.73 8.96 N/A N/A N/A 68.69 63.06 1.59 9.70 N/A N/A N/A 74.35 5.66 8.24%63.06 1.59 9.70 N/A N/A N/A 74.35 5.66 8.24% Lock Rental (Monthly)12.15 1.82 N/A N/A N/A 13.97 12.83 0.32 1.97 N/A N/A N/A 15.12 1.15 8.23%12.83 0.32 1.97 N/A N/A N/A 15.12 1.15 8.23% Lost or Stolen Bin 506.15 75.92 N/A N/A N/A 582.07 534.36 13.50 82.18 N/A N/A N/A 630.04 47.97 8.24%534.36 13.50 82.18 N/A N/A N/A 630.04 47.97 8.24% Overage 33.99 5.10 N/A N/A N/A 39.09 35.89 0.91 5.52 N/A N/A N/A 42.32 3.23 8.26%35.89 0.91 5.52 N/A N/A N/A 42.32 3.23 8.26% Replaced Key 5.06 0.76 N/A N/A N/A 5.82 5.34 0.13 0.82 N/A N/A N/A 6.29 0.47 8.08%5.34 0.13 0.82 N/A N/A N/A 6.29 0.47 8.08% Replaced Lock 25.30 3.80 N/A N/A N/A 29.10 26.71 0.67 4.11 N/A N/A N/A 31.49 2.39 8.21%26.71 0.67 4.11 N/A N/A N/A 31.49 2.39 8.21% ----- * Service fee is adjusted at 90% of CPI (a) 15% of the sum of service and disposal (b) 3.5% of the sum of service and disposal 2017 Rate Components Propsed 2019 Rate Components - Option 2Proposed 2019 Rate Components - Option 1 F.7.c Packet Pg. 91 Attachment: Exhibit B - Commercial Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) 2019 Grand Terrace Rates 3-12-19.xlsx 8 Comm Compactor Burrtec Waste Industries, Inc. City of Grand Terrace Effective July 1, 2019 Commercial Compactor Bin Service 90% of CPI Changes CPI Changes CPI 3.5%0.500$ 2.5%2018 Fee per Yard 3.5%0.570$ from 2.5%2018 Fee per Yard 3.5%0.570$ from 2.4%375.00 15.0%Pavement Street 90% of Service &$0.15 375.00 15.0%Pavement Street current from 90% of Service &$0.15 375.00 Recycling 15.0%Pavement Street current from Bin 37.13$ Franchise Impact Sweeping Total 2.3%Disposal Compliance 39.55$ Franchise Impact Sweeping Total 2017 2017 2.3%Disposal Compliance 39.55$ 1.73$ Franchise Impact Sweeping Total 2017 2017 Size Freq Service*Disposal Fee (a)Fee (b)Fee Rate Service*Catch Up Fee to Burrtec Disposal Fee (a)Fee (b)Fee Rate $%Service*Catch Up Fee to Burrtec Disposal Fee Fee (a)Fee (b)Fee Rate $% 2 1 62.39 60.34 18.41 4.30 4.33 149.77 65.87 3.13 1.30 64.27 20.19 4.71 4.94 164.41 14.64 9.77%65.87 3.13 1.30 64.27 14.99 22.43 5.23 4.94 182.16$ 32.39 21.63% 2 2 110.53 120.67 34.68 8.09 8.67 282.64 116.69 5.88 2.60 128.54 38.06 8.88 9.88 310.53 27.89 9.87%116.69 5.88 2.60 128.54 29.99 42.56 9.93 9.88 346.07$ 63.43 22.44% 2 3 172.93 181.01 53.09 12.39 13.00 432.42 182.56 8.99 3.90 192.81 58.24 13.59 14.82 474.91 42.49 9.83%182.56 8.99 3.90 192.81 44.98 64.99 15.16 14.82 528.21$ 95.79 22.15% 2 4 235.33 241.35 71.50 16.68 17.33 582.19 248.45 12.13 5.20 257.08 78.43 18.30 19.76 639.35 57.16 9.82%248.45 12.13 5.20 257.08 59.97 87.42 20.40 19.76 710.41$ 128.22 22.02% 2 5 297.18 301.68 89.83 20.96 21.67 731.32 313.74 15.24 6.50 321.34 98.52 22.99 24.70 803.03 71.71 9.81%313.74 15.24 6.50 321.34 74.97 109.77 25.61 24.70 891.87$ 160.55 21.95% 2 6 359.84 362.02 108.28 25.27 26.00 881.41 379.89 18.37 7.80 385.61 118.75 27.71 29.64 967.77 86.36 9.80%379.89 18.37 7.80 385.61 89.96 132.24 30.86 29.64 1,074.37$ 192.96 21.89% Add. Pickup (on-site)7.15 13.92 3.16 0.74 0.00 24.97 7.55 0.53 14.83 3.44 0.80 0.00 27.15 2.18 8.73%7.55 0.53 14.83 3.46 3.96 0.92 0.00 31.25$ 6.28 25.15% Add. Pickup (unsched)22.35 13.92 5.44 1.27 0.00 42.98 23.60 0.94 14.83 5.91 1.38 0.00 46.66 3.68 8.56%23.60 0.94 14.83 3.46 6.42 1.50 0.00 50.75$ 7.77 18.08% 3 1 80.36 90.50 25.63 5.98 6.50 208.97 84.84 4.34 1.95 96.40 28.13 6.56 7.41 229.63 20.66 9.89%84.84 4.34 1.95 96.40 22.49 31.50 7.35 7.41 256.28$ 47.31 22.64% 3 2 146.82 181.01 49.17 11.47 13.00 401.47 155.00 8.30 3.90 192.81 54.00 12.60 14.82 441.43 39.96 9.95%155.00 8.30 3.90 192.81 44.98 60.75 14.17 14.82 494.73$ 93.26 23.23% 3 3 227.26 271.51 74.82 17.46 19.50 610.55 239.92 12.64 5.85 289.21 82.14 19.17 22.23 671.16 60.61 9.93%239.92 12.64 5.85 289.21 67.47 92.26 21.53 22.23 751.11$ 140.56 23.02% 3 4 307.39 362.02 100.41 23.43 26.00 819.25 324.53 16.98 7.80 385.61 110.24 25.72 29.64 900.52 81.27 9.92%324.53 16.98 7.80 385.61 89.96 123.73 28.87 29.64 1,007.12$ 187.87 22.93% 3 5 388.08 452.52 126.09 29.42 32.50 1,028.61 409.71 21.32 9.75 482.02 138.42 32.30 37.05 1,130.57 101.96 9.91%409.71 21.32 9.75 482.02 112.45 155.29 36.23 37.05 1,263.82$ 235.21 22.87% 3 6 468.21 543.03 151.69 35.39 39.00 1,237.32 494.30 25.64 11.70 578.42 166.51 38.85 44.46 1,359.88 122.56 9.91%494.30 25.64 11.70 578.42 134.94 186.75 43.58 44.46 1,519.79$ 282.47 22.83% Add. Pickup (on-site)7.15 20.88 4.20 0.98 0.00 33.21 7.55 0.70 22.25 4.58 1.07 0.00 36.15 2.94 8.85%7.55 0.70 22.25 5.19 5.35 1.25 0.00 42.29$ 9.08 27.34% Add. Pickup (unsched)22.35 20.88 6.48 1.51 0.00 51.22 23.60 1.11 22.25 7.04 1.64 0.00 55.64 4.42 8.63%23.60 1.11 22.25 5.19 7.82 1.83 0.00 61.80$ 10.58 20.66% 4 1 105.99 120.67 34.00 7.93 8.67 277.26 111.90 5.75 2.60 128.54 37.32 8.71 9.88 304.70 27.44 9.90%111.90 5.75 2.60 128.54 29.99 41.82 9.76 9.88 340.24$ 62.98 22.72% 4 2 197.96 241.35 65.90 15.38 17.33 537.92 208.99 11.13 5.20 257.08 72.36 16.88 19.76 591.40 53.48 9.94%208.99 11.13 5.20 257.08 59.97 81.36 18.98 19.76 662.47$ 124.55 23.15% 4 3 304.08 362.02 99.92 23.31 26.00 815.33 321.03 16.88 7.80 385.61 109.70 25.60 29.64 896.26 80.93 9.93%321.03 16.88 7.80 385.61 89.96 123.19 28.74 29.64 1,002.85$ 187.52 23.00% 4 4 410.19 482.69 133.93 31.25 34.67 1,092.73 433.06 22.64 10.40 514.15 147.04 34.31 39.52 1,201.12 108.39 9.92%433.06 22.64 10.40 514.15 119.95 165.03 38.51 39.52 1,343.26$ 250.53 22.93% 4 5 516.30 603.36 167.95 39.19 43.33 1,370.13 545.07 28.39 13.00 642.69 184.37 43.02 49.40 1,505.94 135.81 9.91%545.07 28.39 13.00 642.69 149.93 206.86 48.27 49.40 1,683.61$ 313.48 22.88% 4 6 621.34 724.04 201.81 47.09 52.00 1,646.28 655.97 34.12 15.60 771.23 221.54 51.69 59.28 1,809.43 163.15 9.91%655.97 34.12 15.60 771.23 179.92 248.53 57.99 59.28 2,022.64$ 376.36 22.86% Add. Pickup (on-site)7.15 27.85 5.25 1.23 0.00 41.48 7.55 0.87 29.66 5.71 1.33 0.00 45.12 3.64 8.78%7.55 0.87 29.66 6.92 6.75 1.58 0.00 53.33$ 11.85 28.57% Add. Pickup (unsched)22.35 27.85 7.53 1.76 0.00 59.49 23.60 1.28 29.66 8.18 1.91 0.00 64.63 5.14 8.64%23.60 1.28 29.66 6.92 9.22 2.15 0.00 72.83$ 13.34 22.42% * Service fee is adjusted at 90% of CPI (a) 15% of the sum of service and disposal (b) 3.5% of the sum of service and disposal 2017 Rate Components Proposed 2019 Rate Components - Option 2Proposed 2019 Rate Components - Option 1 F.7.c Packet Pg. 92 Attachment: Exhibit B - Commercial Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) 2019 Grand Terrace Rates 3-12-19.xlsx 8 Comm Compactor Burrtec Waste Industries, Inc. City of Grand Terrace Effective July 1, 2019 Commercial Compactor Bin Service 90% of CPI Changes CPI Changes CPI 3.5%0.500$ 2.5%2018 Fee per Yard 3.5%0.570$ from 2.5%2018 Fee per Yard 3.5%0.570$ from 2.4%375.00 15.0%Pavement Street 90% of Service &$0.15 375.00 15.0%Pavement Street current from 90% of Service &$0.15 375.00 Recycling 15.0%Pavement Street current from Bin 37.13$ Franchise Impact Sweeping Total 2.3%Disposal Compliance 39.55$ Franchise Impact Sweeping Total 2017 2017 2.3%Disposal Compliance 39.55$ 1.73$ Franchise Impact Sweeping Total 2017 2017 Size Freq Service*Disposal Fee (a)Fee (b)Fee Rate Service*Catch Up Fee to Burrtec Disposal Fee (a)Fee (b)Fee Rate $%Service*Catch Up Fee to Burrtec Disposal Fee Fee (a)Fee (b)Fee Rate $% 2 1 62.39 60.34 18.41 4.30 4.33 149.77 65.87 3.13 1.30 64.27 20.19 4.71 4.94 164.41 14.64 9.77%65.87 3.13 1.30 64.27 14.99 22.43 5.23 4.94 182.16$ 32.39 21.63% 2 2 110.53 120.67 34.68 8.09 8.67 282.64 116.69 5.88 2.60 128.54 38.06 8.88 9.88 310.53 27.89 9.87%116.69 5.88 2.60 128.54 29.99 42.56 9.93 9.88 346.07$ 63.43 22.44% 2 3 172.93 181.01 53.09 12.39 13.00 432.42 182.56 8.99 3.90 192.81 58.24 13.59 14.82 474.91 42.49 9.83%182.56 8.99 3.90 192.81 44.98 64.99 15.16 14.82 528.21$ 95.79 22.15% 2 4 235.33 241.35 71.50 16.68 17.33 582.19 248.45 12.13 5.20 257.08 78.43 18.30 19.76 639.35 57.16 9.82%248.45 12.13 5.20 257.08 59.97 87.42 20.40 19.76 710.41$ 128.22 22.02% 2 5 297.18 301.68 89.83 20.96 21.67 731.32 313.74 15.24 6.50 321.34 98.52 22.99 24.70 803.03 71.71 9.81%313.74 15.24 6.50 321.34 74.97 109.77 25.61 24.70 891.87$ 160.55 21.95% 2 6 359.84 362.02 108.28 25.27 26.00 881.41 379.89 18.37 7.80 385.61 118.75 27.71 29.64 967.77 86.36 9.80%379.89 18.37 7.80 385.61 89.96 132.24 30.86 29.64 1,074.37$ 192.96 21.89% Add. Pickup (on-site)7.15 13.92 3.16 0.74 0.00 24.97 7.55 0.53 14.83 3.44 0.80 0.00 27.15 2.18 8.73%7.55 0.53 14.83 3.46 3.96 0.92 0.00 31.25$ 6.28 25.15% Add. Pickup (unsched)22.35 13.92 5.44 1.27 0.00 42.98 23.60 0.94 14.83 5.91 1.38 0.00 46.66 3.68 8.56%23.60 0.94 14.83 3.46 6.42 1.50 0.00 50.75$ 7.77 18.08% 3 1 80.36 90.50 25.63 5.98 6.50 208.97 84.84 4.34 1.95 96.40 28.13 6.56 7.41 229.63 20.66 9.89%84.84 4.34 1.95 96.40 22.49 31.50 7.35 7.41 256.28$ 47.31 22.64% 3 2 146.82 181.01 49.17 11.47 13.00 401.47 155.00 8.30 3.90 192.81 54.00 12.60 14.82 441.43 39.96 9.95%155.00 8.30 3.90 192.81 44.98 60.75 14.17 14.82 494.73$ 93.26 23.23% 3 3 227.26 271.51 74.82 17.46 19.50 610.55 239.92 12.64 5.85 289.21 82.14 19.17 22.23 671.16 60.61 9.93%239.92 12.64 5.85 289.21 67.47 92.26 21.53 22.23 751.11$ 140.56 23.02% 3 4 307.39 362.02 100.41 23.43 26.00 819.25 324.53 16.98 7.80 385.61 110.24 25.72 29.64 900.52 81.27 9.92%324.53 16.98 7.80 385.61 89.96 123.73 28.87 29.64 1,007.12$ 187.87 22.93% 3 5 388.08 452.52 126.09 29.42 32.50 1,028.61 409.71 21.32 9.75 482.02 138.42 32.30 37.05 1,130.57 101.96 9.91%409.71 21.32 9.75 482.02 112.45 155.29 36.23 37.05 1,263.82$ 235.21 22.87% 3 6 468.21 543.03 151.69 35.39 39.00 1,237.32 494.30 25.64 11.70 578.42 166.51 38.85 44.46 1,359.88 122.56 9.91%494.30 25.64 11.70 578.42 134.94 186.75 43.58 44.46 1,519.79$ 282.47 22.83% Add. Pickup (on-site)7.15 20.88 4.20 0.98 0.00 33.21 7.55 0.70 22.25 4.58 1.07 0.00 36.15 2.94 8.85%7.55 0.70 22.25 5.19 5.35 1.25 0.00 42.29$ 9.08 27.34% Add. Pickup (unsched)22.35 20.88 6.48 1.51 0.00 51.22 23.60 1.11 22.25 7.04 1.64 0.00 55.64 4.42 8.63%23.60 1.11 22.25 5.19 7.82 1.83 0.00 61.80$ 10.58 20.66% 4 1 105.99 120.67 34.00 7.93 8.67 277.26 111.90 5.75 2.60 128.54 37.32 8.71 9.88 304.70 27.44 9.90%111.90 5.75 2.60 128.54 29.99 41.82 9.76 9.88 340.24$ 62.98 22.72% 4 2 197.96 241.35 65.90 15.38 17.33 537.92 208.99 11.13 5.20 257.08 72.36 16.88 19.76 591.40 53.48 9.94%208.99 11.13 5.20 257.08 59.97 81.36 18.98 19.76 662.47$ 124.55 23.15% 4 3 304.08 362.02 99.92 23.31 26.00 815.33 321.03 16.88 7.80 385.61 109.70 25.60 29.64 896.26 80.93 9.93%321.03 16.88 7.80 385.61 89.96 123.19 28.74 29.64 1,002.85$ 187.52 23.00% 4 4 410.19 482.69 133.93 31.25 34.67 1,092.73 433.06 22.64 10.40 514.15 147.04 34.31 39.52 1,201.12 108.39 9.92%433.06 22.64 10.40 514.15 119.95 165.03 38.51 39.52 1,343.26$ 250.53 22.93% 4 5 516.30 603.36 167.95 39.19 43.33 1,370.13 545.07 28.39 13.00 642.69 184.37 43.02 49.40 1,505.94 135.81 9.91%545.07 28.39 13.00 642.69 149.93 206.86 48.27 49.40 1,683.61$ 313.48 22.88% 4 6 621.34 724.04 201.81 47.09 52.00 1,646.28 655.97 34.12 15.60 771.23 221.54 51.69 59.28 1,809.43 163.15 9.91%655.97 34.12 15.60 771.23 179.92 248.53 57.99 59.28 2,022.64$ 376.36 22.86% Add. Pickup (on-site)7.15 27.85 5.25 1.23 0.00 41.48 7.55 0.87 29.66 5.71 1.33 0.00 45.12 3.64 8.78%7.55 0.87 29.66 6.92 6.75 1.58 0.00 53.33$ 11.85 28.57% Add. Pickup (unsched)22.35 27.85 7.53 1.76 0.00 59.49 23.60 1.28 29.66 8.18 1.91 0.00 64.63 5.14 8.64%23.60 1.28 29.66 6.92 9.22 2.15 0.00 72.83$ 13.34 22.42% * Service fee is adjusted at 90% of CPI (a) 15% of the sum of service and disposal (b) 3.5% of the sum of service and disposal 2017 Rate Components Proposed 2019 Rate Components - Option 2Proposed 2019 Rate Components - Option 1 F.7.c Packet Pg. 93 Attachment: Exhibit B - Commercial Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) 2019 Grand Terrace Rates 3-12-19.xlsx 9 Rolloff Burrtec Waste Industries, Inc. City of Grand Terrace Effective July 1, 2019 Rolloff Service 90% of CPI Changes CPI 3.5%2.5%2018 Fee per Load 3.5%from 2.4%15.0%Pavement 90% of Service &$2.75 15.0%Pavement current from 49.13$ Franchise Impact Total 2.3%Disposal Compliance 51.55$ Franchise Impact Total 2017 2017 Size Tons Service*Disposal Fee (a)Fee (b)Rate Service*Catch Up Fee to Burrtec Disposal Fee (a)Fee (b)Rate $% Permanent 40 6 184.36 Actual 27.65 6.45 218.46 194.64 4.92 2.75 Actual 30.35 7.08 239.74$ 21.28 9.74% 20 6 184.36 Actual 27.65 6.45 218.46 194.64 4.92 2.75 Actual 30.35 7.08 239.74$ 21.28 9.74% 10 8 184.36 Actual 27.65 6.45 218.46 194.64 4.92 2.75 Actual 30.35 7.08 239.74$ 21.28 9.74% 40 184.36 Actual 27.65 6.45 218.46 194.64 4.92 Actual 29.93 6.98 236.47$ 18.01 8.24% (Recycling) 40 184.36 Actual 27.65 6.45 218.46 194.64 4.92 Actual 29.93 6.98 236.47$ 18.01 8.24% (Green Waste) 40 8 206.03 Actual 30.90 7.21 244.14 217.51 5.49 2.75 Actual 33.86 7.90 267.51$ 23.37 9.57% (Compactor) Temporary 40 6 206.03 294.78 75.12 17.53 593.46 217.51 5.49 2.75 309.30 80.26 18.73 634.04$ 40.58 6.84% 20 6 206.03 294.78 75.12 17.53 593.46 217.51 5.49 2.75 309.30 80.26 18.73 634.04$ 40.58 6.84% 10 6 206.03 294.78 75.12 17.53 593.46 217.51 5.49 2.75 309.30 80.26 18.73 634.04$ 40.58 6.84% 40 (Rent per Day)24.59 N/A 3.69 0.86 29.14 25.96 0.66 N/A 3.89 0.91 31.42$ 2.28 7.82% Dump Fee 49.13 7.37 1.72 58.22 51.55 7.73 1.80 61.08$ 2.86 4.91% (Temp. Additional Over 5 Tons)49.13 7.37 1.72 58.22 51.55 7.73 1.80 61.08$ 2.86 4.91% ----- * Service fee is adjusted at 90% of CPI (a) 15% of the sum of service and disposal (b) 3.5% of the service Perm. Box serviced a minimum of four (4) times per month and left on premises full time Temp. Box serviced a minimum of one time every seven (7) days 2017 Rate Components Proposed 2019 Rate Components F.7.c Packet Pg. 94 Attachment: Exhibit B - Commercial Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) 2019 Grand Terrace Rates 3-12-19.xlsx 12 Equal Comm Refuse w Recyc Burrtec Waste Industries, Inc. City of Grand Terrace Effective July 1, 2019 Commercial Bin Service - Equalized Rates 90% of CPI Changes CPI 3.5%0.500$ 2.5%Fee per Yard Lbs/Yr 3.5%0.570$ from 2.4%159.00 15.0%Pavement Street 90% of $0.15 131.00 Recycling FW 15.0%Pavement Street current from Bin 37.13$ Franchise Impact Sweeping Total 2.3%Compliance 39.55$ 1.73$ 1.59$ Franchise Impact Sweeping Total 2017 2017 Size Freq Service*Disposal Fee (a)Fee (b)Fee Rate Service*Fee to Burrtec Disposal Fee Fee Fee (a)Fee (b)Fee Rate $% 2 1 59.71 25.58 12.79 2.99 4.33 105.40 63.04 1.30 22.45 14.99 13.78 17.33 4.04 4.94 141.87$ 36.47 34.60% 2 2 105.44 51.17 23.49 5.48 8.67 194.25 111.31 2.60 44.90 29.99 27.56 32.45 7.57 9.88 266.26$ 72.01 37.07% 2 3 165.14 76.75 36.28 8.47 13.00 299.64 174.34 3.90 67.35 44.98 41.34 49.79 11.62 14.82 408.14$ 108.50 36.21% 2 4 224.86 102.33 49.08 11.45 17.33 405.05 237.40 5.20 89.80 59.97 55.12 67.12 15.66 19.76 550.03$ 144.98 35.79% 2 5 284.02 127.91 61.79 14.42 21.67 509.81 299.85 6.50 112.26 74.97 68.90 84.37 19.69 24.70 691.24$ 181.43 35.59% 2 6 343.99 153.50 74.62 17.41 26.00 615.52 363.17 7.80 134.71 89.96 82.68 101.75 23.74 29.64 833.45$ 217.93 35.41% Add. Pickup (on-site)7.15 5.90 1.96 0.46 0.00 15.47 7.55 5.18 3.46 3.18 2.91 0.68 0.00 22.96$ 7.49 48.42% Add. Pickup (unsched)22.35 5.90 4.24 0.99 0.00 33.48 23.60 5.18 3.46 3.18 5.31 1.24 0.00 41.97$ 8.49 25.36% 3 1 76.60 38.37 17.25 4.02 6.50 142.74 80.87 1.95 33.68 22.49 20.67 23.95 5.59 7.41 196.61$ 53.87 37.74% 3 2 139.60 76.75 32.45 7.57 13.00 269.37 147.38 3.90 67.35 44.98 41.34 45.74 10.67 14.82 376.18$ 106.81 39.65% 3 3 216.31 115.12 49.71 11.60 19.50 412.24 228.36 5.85 101.03 67.47 62.01 69.71 16.27 22.23 572.93$ 160.69 38.98% 3 4 301.90 153.50 68.31 15.94 26.00 565.65 318.73 7.80 134.71 89.96 82.68 95.08 22.19 29.64 780.79$ 215.14 38.03% 3 5 369.60 191.87 84.22 19.65 32.50 697.84 390.20 9.75 168.38 112.45 103.35 117.62 27.44 37.05 966.24$ 268.40 38.46% 3 6 445.99 230.24 101.43 23.67 39.00 840.33 470.85 11.70 202.06 134.94 124.02 141.54 33.02 44.46 1,162.59$ 322.26 38.35% Add. Pickup (on-site)7.15 8.85 2.40 0.56 0.00 18.96 7.55 7.77 5.19 4.77 3.79 0.88 0.00 29.95$ 10.99 57.96% Add. Pickup (unsched)22.35 8.85 4.68 1.09 0.00 36.97 23.60 7.77 5.19 4.77 6.20 1.45 0.00 48.98$ 12.01 32.49% 4 1 101.03 51.17 22.83 5.33 8.67 189.03 106.66 2.60 44.90 29.99 27.56 31.76 7.41 9.88 260.76$ 71.73 37.95% 4 2 188.32 102.33 43.60 10.17 17.33 361.75 198.82 5.20 89.80 59.97 55.12 61.34 14.31 19.76 504.32$ 142.57 39.41% 4 3 289.45 153.50 66.44 15.50 26.00 550.89 305.58 7.80 134.71 89.96 82.68 93.11 21.73 29.64 765.21$ 214.32 38.90% 4 4 390.59 204.66 89.29 20.83 34.67 740.04 412.36 10.40 179.61 119.95 110.24 124.88 29.14 39.52 1,026.10$ 286.06 38.65% 4 5 493.60 255.83 112.41 26.23 43.33 931.40 521.12 13.00 224.51 149.93 137.80 156.95 36.62 49.40 1,289.33$ 357.93 38.43% 4 6 591.81 306.99 134.82 31.46 52.00 1,117.08 624.80 15.60 269.41 179.92 165.36 188.26 43.93 59.28 1,546.56$ 429.48 38.45% Add. Pickup (on-site)7.15 11.81 2.84 0.66 0.00 22.46 7.55 10.36 6.92 6.36 4.68 1.09 0.00 36.96$ 14.50 64.56% Add. Pickup (unsched)22.35 11.81 5.12 1.20 0.00 40.48 23.60 10.36 6.92 6.36 7.09 1.65 0.00 55.98$ 15.50 38.29% 6 1 144.19 76.75 33.14 7.73 13.00 274.81 152.22 3.90 67.35 44.98 41.34 46.47 10.84 14.82 381.92$ 107.11 38.98% 6 2 274.44 153.50 64.19 14.98 26.00 533.11 289.73 7.80 134.71 89.96 82.68 90.73 21.17 29.64 746.42$ 213.31 40.01% 6 3 419.18 230.24 97.41 22.73 39.00 808.56 442.54 11.70 202.06 134.94 124.02 137.29 32.03 44.46 1,129.04$ 320.48 39.64% 6 4 562.84 306.99 130.47 30.44 52.00 1,082.74 594.21 15.60 269.41 179.92 165.36 183.68 42.86 59.28 1,510.32$ 427.58 39.49% 6 5 707.04 383.74 163.62 38.18 65.00 1,357.58 746.45 19.50 336.77 224.90 206.70 230.15 53.70 74.10 1,892.27$ 534.69 39.39% 6 6 851.23 460.49 196.76 45.91 78.00 1,632.39 898.67 23.40 404.12 269.88 248.04 276.62 64.54 88.92 2,274.19$ 641.80 39.32% Add. Pickup (on-site)7.15 17.71 3.73 0.87 0.00 29.46 7.55 15.54 10.38 9.54 6.45 1.51 0.00 50.97$ 21.51 73.01% Add. Pickup (unsched)22.35 17.71 6.01 1.40 0.00 47.47 23.60 15.54 10.38 9.54 8.86 2.07 0.00 69.99$ 22.52 47.44% Add'l Charges T-Bins - 3 yards (COD)22.35 38.37 9.11 2.13 N/A 71.96 23.60 33.68 22.49 20.67 15.07 3.52 N/A 119.03$ 47.07 65.41% 96 Gal Commingled Recycling N/C N/C N/A Extra Recycling Barrel 2.17 2.29$ 0.12 5.53% Locks Burned Bin 283.45 42.52 N/A N/A 325.97 299.25 44.89 N/A N/A 344.14$ 18.17 5.57% Exchanges 59.73 8.96 N/A N/A 68.69 63.06 9.46 N/A N/A 72.52$ 3.83 5.58% Lock Rental (Monthly)12.15 1.82 N/A N/A 13.97 12.83 1.92 N/A N/A 14.75$ 0.78 5.58% Lost or Stolen Bin 506.15 75.92 N/A N/A 582.07 534.36 80.15 N/A N/A 614.51$ 32.44 5.57% Overage 33.99 5.10 N/A N/A 39.09 35.89 5.38 N/A N/A 41.27$ 2.18 5.58% Replaced Key 5.06 0.76 N/A N/A 5.82 5.34 0.80 N/A N/A 6.14$ 0.32 5.50% Replaced Lock 25.30 3.80 N/A N/A 29.10 26.71 4.01 N/A N/A 30.72$ 1.62 5.57% ----- * Service fee is adjusted at 90% of CPI (a) 15% of the sum of service and disposal (b) 3.5% of the sum of service and disposal 2017 Rate Components Proposed 2019 Rate Components - Option 3 F.7.d Packet Pg. 95 Attachment: Exhibit C- Equalized Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) 2019 Grand Terrace Rates 3-12-19.xlsx 12b Equal MF Refuse w Recyc Burrtec Waste Industries, Inc. City of Grand Terrace Effective July 1, 2019 Multi-Family Commercial Bin Service - Equalized Rates 90% of CPI Changes CPI 3.5%0.160$ 0.500$ 2.5%Fee per Yard Lbs/Yr 3.5%0.160$ 0.570$ from 2.4%159.00 15.0%Pavement Street 90% of $0.15 131.00 Recycling FW 15.0%Pavement Street current from Bin 37.13$ Franchise Impact HHW Sweeping Total 2.3%Compliance 39.55$ 1.73$ 1.59$ Franchise Impact HHW Sweeping Total 2017 2017 Size Freq Service*Disposal Fee (a)Fee (b)Fee Fee Rate Service*Fee to Burrtec Disposal Fee Fee Fee (a)Fee (b)Fee Fee Rate $% 2 1 59.71 25.58 12.79 2.99 1.39 4.33 106.79 63.04 1.30 22.45 14.99 13.78 17.33 4.04 1.39 4.94 143.26$ 36.47 34.15% 2 2 105.44 51.16 23.49 5.48 2.77 8.67 197.01 111.31 2.60 44.90 29.99 27.56 32.45 7.57 2.77 9.88 269.03$ 72.02 36.56% 2 3 165.14 76.74 36.28 8.47 4.16 13.00 303.79 174.34 3.90 67.35 44.98 41.34 49.79 11.62 4.16 14.82 412.30$ 108.51 35.72% 2 4 224.86 102.32 49.08 11.45 5.55 17.33 410.59 237.40 5.20 89.80 59.97 55.12 67.12 15.66 5.55 19.76 555.58$ 144.99 35.31% 2 5 284.02 127.90 61.79 14.42 6.93 21.67 516.73 299.85 6.50 112.25 74.97 68.90 84.37 19.69 6.93 24.70 698.16$ 181.43 35.11% 2 6 343.99 153.48 74.62 17.41 8.32 26.00 623.82 363.17 7.80 134.70 89.96 82.68 101.75 23.74 8.32 29.64 841.76$ 217.94 34.94% Add. Pickup (on-site)7.15 5.90 1.96 0.46 0.00 0.00 15.47 7.55 5.18 3.46 3.18 2.91 0.68 0.00 0.00 22.96$ 7.49 48.42% Add. Pickup (unsched)22.35 5.90 4.24 0.99 0.00 0.00 33.48 23.60 5.18 3.46 3.18 5.31 1.24 0.00 0.00 41.97$ 8.49 25.36% 3 1 76.60 38.37 17.25 4.02 2.08 6.50 144.82 80.87 1.95 33.68 22.49 20.67 23.95 5.59 2.08 7.41 198.69$ 53.87 37.20% 3 2 139.60 76.74 32.45 7.57 4.16 13.00 273.52 147.38 3.90 67.36 44.98 41.34 45.74 10.67 4.16 14.82 380.35$ 106.83 39.06% 3 3 216.31 115.11 49.71 11.60 6.24 19.50 418.47 228.36 5.85 101.04 67.47 62.01 69.71 16.27 6.24 22.23 579.18$ 160.71 38.40% 3 4 301.90 153.48 68.31 15.94 8.32 26.00 573.95 318.73 7.80 134.72 89.96 82.68 95.08 22.19 8.32 29.64 789.12$ 215.17 37.49% 3 5 369.60 191.85 84.22 19.65 10.40 32.50 708.22 390.20 9.75 168.40 112.45 103.35 117.62 27.45 10.40 37.05 976.67$ 268.45 37.90% 3 6 445.99 230.22 101.43 23.67 12.48 39.00 852.79 470.85 11.70 202.08 134.94 124.02 141.54 33.03 12.48 44.46 1,175.10$ 322.31 37.79% Add. Pickup (on-site)7.15 8.85 2.40 0.56 0.00 0.00 18.96 7.55 7.77 5.19 4.77 3.79 0.88 0.00 0.00 29.95$ 10.99 57.96% Add. Pickup (unsched)22.35 8.85 4.68 1.09 0.00 0.00 36.97 23.60 7.77 5.19 4.77 6.20 1.45 0.00 0.00 48.98$ 12.01 32.49% 4 1 101.03 51.17 22.83 5.33 2.77 8.67 191.80 106.66 2.60 44.90 29.99 27.56 31.76 7.41 2.77 9.88 263.53$ 71.73 37.40% 4 2 188.32 102.34 43.60 10.17 5.55 17.33 367.31 198.82 5.20 89.80 59.97 55.12 61.34 14.31 5.55 19.76 509.87$ 142.56 38.81% 4 3 289.45 153.51 66.44 15.50 8.32 26.00 559.22 305.58 7.80 134.70 89.96 82.68 93.11 21.73 8.32 29.64 773.52$ 214.30 38.32% 4 4 390.59 204.68 89.29 20.83 11.09 34.67 751.15 412.36 10.40 179.60 119.95 110.24 124.88 29.14 11.09 39.52 1,037.18$ 286.03 38.08% 4 5 493.60 255.85 112.42 26.23 13.87 43.33 945.30 521.12 13.00 224.50 149.93 137.80 156.95 36.62 13.87 49.40 1,303.19$ 357.89 37.86% 4 6 591.81 307.02 134.82 31.46 16.64 52.00 1,133.75 624.80 15.60 269.40 179.92 165.36 188.26 43.93 16.64 59.28 1,563.19$ 429.44 37.88% Add. Pickup (on-site)7.15 11.81 2.84 0.66 0.00 0.00 22.46 7.55 10.36 6.92 6.36 4.68 1.09 0.00 0.00 36.96$ 14.50 64.56% Add. Pickup (unsched)22.35 11.81 5.12 1.20 0.00 0.00 40.48 23.60 10.36 6.92 6.36 7.09 1.65 0.00 0.00 55.98$ 15.50 38.29% 6 1 144.19 76.75 33.14 7.73 4.16 13.00 278.97 152.22 3.90 67.35 44.98 41.34 46.47 10.84 4.16 14.82 386.08$ 107.11 38.39% 6 2 274.44 153.50 64.19 14.98 8.32 26.00 541.43 289.73 7.80 134.70 89.96 82.68 90.73 21.17 8.32 29.64 754.73$ 213.30 39.40% 6 3 419.18 230.25 97.41 22.73 12.48 39.00 821.05 442.54 11.70 202.05 134.94 124.02 137.29 32.03 12.48 44.46 1,141.51$ 320.46 39.03% 6 4 562.84 307.00 130.48 30.44 16.64 52.00 1,099.40 594.21 15.60 269.40 179.92 165.36 183.67 42.86 16.64 59.28 1,526.94$ 427.54 38.89% 6 5 707.04 383.75 163.62 38.18 20.80 65.00 1,378.39 746.45 19.50 336.75 224.90 206.70 230.15 53.70 20.80 74.10 1,913.05$ 534.66 38.79% 6 6 851.23 460.50 196.76 45.91 24.96 78.00 1,657.36 898.67 23.40 404.10 269.88 248.04 276.61 64.54 24.96 88.92 2,299.12$ 641.76 38.72% Add. Pickup (on-site)7.15 17.71 3.73 0.87 0.00 0.00 29.46 7.55 15.54 10.38 9.54 6.45 1.51 0.00 0.00 50.97$ 21.51 73.01% Add. Pickup (unsched)22.35 17.71 6.01 1.40 0.00 0.00 47.47 23.60 15.54 10.38 9.54 8.86 2.07 0.00 0.00 69.99$ 22.52 47.44% Add'l Charges T-Bins - 3 yards (COD)22.35 38.37 9.11 2.13 N/A N/A 71.96 23.60 33.68 22.49 20.67 15.07 3.52 N/A N/A 119.03$ 47.07 65.41% 96 Gal Commingled Recycling N/C N/C Extra Recycling Barrel 2.17 2.29$ 0.12 5.53% Locks Burned Bin 283.45 42.52 N/A N/A N/A 325.97 299.25 44.89 N/A N/A N/A 344.14$ 18.17 5.57% Exchanges 59.73 8.96 N/A N/A N/A 68.69 63.06 9.46 N/A N/A N/A 72.52$ 3.83 5.58% Lock Rental (Monthly)12.15 1.82 N/A N/A N/A 13.97 12.83 1.92 N/A N/A N/A 14.75$ 0.78 5.58% Lost or Stolen Bin 506.15 75.92 N/A N/A N/A 582.07 534.36 80.15 N/A N/A N/A 614.51$ 32.44 5.57% Overage 33.99 5.10 N/A N/A N/A 39.09 35.89 5.38 N/A N/A N/A 41.27$ 2.18 5.58% Replaced Key 5.06 0.76 N/A N/A N/A 5.82 5.34 0.80 N/A N/A N/A 6.14$ 0.32 5.50% Replaced Lock 25.30 3.80 N/A N/A N/A 29.10 26.71 4.01 N/A N/A N/A 30.72$ 1.62 5.57% ----- * Service fee is adjusted at 90% of CPI (a) 15% of the sum of service and disposal (b) 3.5% of the sum of service and disposal 2017 Rate Components Proposed 2019 Rate Components - Option 3 F.7.d Packet Pg. 96 Attachment: Exhibit C- Equalized Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) 2019 Grand Terrace Rates 3-12-19.xlsx 12c Equal FW Refuse w Recy Burrtec Waste Industries, Inc. City of Grand Terrace Effective July 1, 2019 Food Waste Service - Equalized Rates Changes Fee per Yard Lbs/Yr 3.5%0.570$ from $0.15 131.00 Recycling FW 15.0%Pavement Street proposed from Bin Compliance 39.55$ 1.73$ 1.59$ Franchise Impact Sweeping Total 2018 2018 Size Freq Service*Fee to Burrtec Disposal Fee/Yrd Fee/Yrd Fee (a)Fee (b)Fee Rate $% 1.5 1 54.81 0.98 16.84 11.25 10.34 14.13 3.30 3.71 115.36$ 7.14$ 6.60% 1.5 2 90.52 1.95 33.68 22.49 20.67 25.40 5.93 7.41 208.05$ 6.45$ 3.20% 1.5 3 138.74 2.93 50.52 33.74 31.01 38.54 8.99 11.12 315.59$ 5.79$ 1.87% 1.5 4 184.54 3.90 67.35 44.98 41.34 51.32 11.97 14.82 420.22$ 2.20$ 0.53% 1.5 5 212.06 4.88 84.19 56.23 51.68 61.36 14.32 18.53 503.25$ (22.39)$ -4.26% 1.5 6 273.51 5.85 101.03 67.47 62.01 76.48 17.85 22.23 626.43$ (7.67)$ -1.21% Add. Pickup (on-site)7.55 3.89 2.60 2.39 2.46 0.58 0.00 19.47$ 1.19$ 6.51% Add. Pickup (unsched)23.60 3.89 2.60 2.39 4.87 1.14 0.00 38.49$ 1.61$ 4.37% 2 1 63.04 1.30 22.45 14.99 13.78 17.33 4.04 4.94 141.87$ 8.86$ 6.66% 2 2 111.31 2.60 44.90 29.99 27.56 32.45 7.57 9.88 266.26$ 17.34$ 6.97% 2 3 174.34 3.90 67.35 44.98 41.34 49.79 11.62 14.82 408.14$ 26.22$ 6.87% 2 4 237.40 5.20 89.80 59.97 55.12 67.12 15.66 19.76 550.03$ 35.08$ 6.81% 2 5 299.85 6.50 112.26 74.97 68.90 84.37 19.69 24.70 691.24$ 43.96$ 6.79% 2 6 363.17 7.80 134.71 89.96 82.68 101.75 23.74 29.64 833.45$ 52.84$ 6.77% Add. Pickup (on-site)7.55 5.18 3.46 3.18 2.91 0.68 0.00 22.96$ 1.51$ 7.04% Add. Pickup (unsched)23.60 5.18 3.46 3.18 5.31 1.24 0.00 41.97$ 1.93$ 4.82% 65Gal 1 25.77 0.46 3.83 0.97 3.27 5.15 1.20 1.14 41.79$ 3.11$ 8.04% 65Gal 2 45.50 0.46 7.66 1.94 6.54 9.32 2.17 2.28 75.87$ 5.50$ 7.82% 65Gal 3 71.26 0.46 11.49 2.91 9.81 14.39 3.36 3.42 117.10$ 8.05$ 7.38% 65Gal 4 97.04 0.46 15.32 3.88 13.08 19.47 4.54 4.56 158.35$ 10.61$ 7.18% 65Gal 5 122.57 0.46 19.15 4.85 16.35 24.51 5.72 5.70 199.31$ 13.16$ 7.07% 65Gal 6 148.45 0.46 22.98 5.82 19.62 29.60 6.91 6.84 240.68$ 15.72$ 6.99% Add. Pickup (on-site)7.55 0.88 0.22 0.75 1.41 0.33 0.00 11.14$ 0.61$ 5.79% Add. Pickup (unsched)23.60 0.88 0.22 0.75 3.82 0.89 0.00 30.16$ 1.03$ 3.54% ----- * Service fee is adjusted at 90% of CPI (a) 15% of the sum of service and disposal (b) 3.5% of the sum of service and disposal Proposed 2019 Rate Components - Option 3 F.7.d Packet Pg. 97 Attachment: Exhibit C- Equalized Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) 2019 Grand Terrace Rates 3-12-19.xlsx 12d Equal Compactor w Recyc Burrtec Waste Industries, Inc. City of Grand Terrace Effective July 1, 2019 Commercial Compactor Bin Service - Equalized Rates 90% of CPI Changes CPI 3.5%0.500$ 2.5%Fee per Yard 3.5%0.570$ from 2.4%375.00 15.0%Pavement Street 90% of $0.15 375.00 Recycling FW 15.0%Pavement Street current from Bin 37.13$ Franchise Impact Sweeping Total 2.3%Compliance 39.55$ 1.73$ 1.59$ Franchise Impact Sweeping Total 2017 2017 Size Freq Service*Disposal Fee (a)Fee (b)Fee Rate Service*Fee to Burrtec Disposal Fee Fee Fee (a)Fee (b)Fee Rate $% 2 1 62.39 60.34 18.41 4.30 4.33 149.77 65.87 1.30 64.27 14.99 13.78 24.03 5.61 4.94 194.79 45.02 30.06% 2 2 110.53 120.67 34.68 8.09 8.67 282.64 116.69 2.60 128.54 29.99 27.56 45.81 10.69 9.88 371.76 89.12 31.53% 2 3 172.93 181.01 53.09 12.39 13.00 432.42 182.56 3.90 192.81 44.98 41.34 69.84 16.30 14.82 566.55 134.13 31.02% 2 4 235.33 241.35 71.50 16.68 17.33 582.19 248.45 5.20 257.08 59.97 55.12 93.87 21.90 19.76 761.35 179.16 30.77% 2 5 297.18 301.68 89.83 20.96 21.67 731.32 313.74 6.50 321.34 74.97 68.90 117.82 27.49 24.70 955.46 224.14 30.65% 2 6 359.84 362.02 108.28 25.27 26.00 881.41 379.89 7.80 385.61 89.96 82.68 141.89 33.11 29.64 1,150.58 269.17 30.54% Add. Pickup (on-site)7.15 13.92 3.16 0.74 0.00 24.97 7.55 14.83 3.46 3.18 4.35 1.02 0.00 34.39 9.42 37.73% Add. Pickup (unsched)22.35 13.92 5.44 1.27 0.00 42.98 23.60 14.83 3.46 3.18 6.76 1.58 0.00 53.41 10.43 24.27% 3 1 80.36 90.50 25.63 5.98 6.50 208.97 84.84 1.95 96.40 22.49 20.67 33.95 7.92 7.41 275.63 66.66 31.90% 3 2 146.82 181.01 49.17 11.47 13.00 401.47 155.00 3.90 192.81 44.98 41.34 65.70 15.33 14.82 533.88 132.41 32.98% 3 3 227.26 271.51 74.82 17.46 19.50 610.55 239.92 5.85 289.21 67.47 62.01 99.67 23.26 22.23 809.62 199.07 32.61% 3 4 307.39 362.02 100.41 23.43 26.00 819.25 324.53 7.80 385.61 89.96 82.68 133.59 31.17 29.64 1,084.98 265.73 32.44% 3 5 388.08 452.52 126.09 29.42 32.50 1,028.61 409.71 9.75 482.02 112.45 103.35 167.59 39.10 37.05 1,361.02 332.41 32.32% 3 6 468.21 543.03 151.69 35.39 39.00 1,237.32 494.30 11.70 578.42 134.94 124.02 201.51 47.02 44.46 1,636.37 399.05 32.25% Add. Pickup (on-site)7.15 20.88 4.20 0.98 0.00 33.21 7.55 22.25 5.19 4.77 5.96 1.39 0.00 47.11 13.90 41.85% Add. Pickup (unsched)22.35 20.88 6.48 1.51 0.00 51.22 23.60 22.25 5.19 4.77 8.37 1.95 0.00 66.13 14.91 29.11% 4 1 105.99 120.67 34.00 7.93 8.67 277.26 111.90 2.60 128.54 29.99 27.56 45.09 10.52 9.88 366.08 88.82 32.03% 4 2 197.96 241.35 65.90 15.38 17.33 537.92 208.99 5.20 257.08 59.97 55.12 87.95 20.52 19.76 714.59 176.67 32.84% 4 3 304.08 362.02 99.92 23.31 26.00 815.33 321.03 7.80 385.61 89.96 82.68 133.06 31.05 29.64 1,080.83 265.50 32.56% 4 4 410.19 482.69 133.93 31.25 34.67 1,092.73 433.06 10.40 514.15 119.95 110.24 178.17 41.57 39.52 1,447.06 354.33 32.43% 4 5 516.30 603.36 167.95 39.19 43.33 1,370.13 545.07 13.00 642.69 149.93 137.80 223.27 52.10 49.40 1,813.26 443.13 32.34% 4 6 621.34 724.04 201.81 47.09 52.00 1,646.28 655.97 15.60 771.23 179.92 165.36 268.21 62.58 59.28 2,178.15 531.87 32.31% Add. Pickup (on-site)7.15 27.85 5.25 1.23 0.00 41.48 7.55 29.66 6.92 6.36 7.57 1.77 0.00 59.83 18.35 44.24% Add. Pickup (unsched)22.35 27.85 7.53 1.76 0.00 59.49 23.60 29.66 6.92 6.36 9.98 2.33 0.00 78.85 19.36 32.54% * Service fee is adjusted at 90% of CPI (a) 15% of the sum of service and disposal (b) 3.5% of the sum of service and disposal 2017 Rate Components 2019 Rate Components - Option 3 F.7.d Packet Pg. 98 Attachment: Exhibit C- Equalized Rates (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) 2019 Grand Terrace Rates 3-12-19.xlsx 13 Special Services Burrtec Waste Industries, Inc. City of Grand Terrace Effective July 1, 2019 Residential and Commercial - Special Services Push Bin Rates Push Bin Rates Per Pick-Up Frequency:1/week 2/week 3/week per Pick Up 1/week 2/week 3/week 4/week 5/week 6/week 0-25 feet N/C N/C N/C 0-25 feet 20.00$ 40.00$ 60.00$ 80.00$ 100.00$ 120.00$ 26-50 feet 7.63$ 15.27$ 22.90$ 26-50 feet 40.00$ 80.00$ 120.00$ 160.00$ 200.00$ 240.00$ 51-75 feet 9.82$ 19.63$ 29.44$ 50-75 Feet 60.00$ 120.00$ 180.00$ 240.00$ 300.00$ 360.00$ 76-100 feet 10.91$ 21.81$ 32.72$ Over 75 Feet 101-125 feet 11.99$ 23.98$ 35.99$ 126-150 feet 13.09$ 26.16$ 39.26$ 151-175 feet 14.18$ 28.35$ 42.53$ 176-200 feet 15.27$ 30.54$ 45.79$ Over 200 feet 16.35$ 32.72$ 49.07$ 90% of CPI 2.4% Proposed Rates 2019 Scout Service Required - Rate $150 per hour Current Rates - 2017 8/1/17 F.7.e Packet Pg. 99 Attachment: Exhibit D- Special Services (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) 2019 Grand Terrace Rates 3-12-19.xlsx 14 Comm Add'l Fees Burrtec Waste Industries, Inc. City of Grand Terrace Effective July 1, 2019 Additional Fees Changes from current from 2017 2018 2019 2017 2017 Additional Services Rate Rate Rate $% Residential & Commercial On-call Bulky Pickup - First Item $27.73 $28.62 $29.28 $1.55 5.6% On-call Bulky Pickup - Each Additional Item $16.35 $16.87 $17.26 $0.91 5.6% . Commercial Bin enclosure Clean Up - Per Hour $47.09 $48.60 $49.72 $2.63 5.6% Extra Barrel $11.04 $11.39 $11.65 $0.61 5.5% Residential Extra Pick Up - On Service Day $10.47 $10.81 $11.06 $0.59 5.6% Extra Pick Up - All Other Days $20.93 $21.60 $22.10 $1.17 5.6% Roll-Off Relocation/Extra Trip Charge (no pull)$75.00 $77.40 $79.18 $4.18 5.6% Contamination Fee Barrel/Bin FW/Recycling/GW $50.00 $55.00 $56.27 $6.27 12.5% Tilthopper $35.00 $36.12 $36.95 $1.95 5.6% 90% of CPI 2.4%3.2%2.3% F.7.e Packet Pg. 100 Attachment: Exhibit D- Special Services (Amending the Resolution Setting a Public Hearing Relating to Refuse Rate Adjustments) AGENDA REPORT MEETING DATE: June 25, 2019 Council Item TITLE: City Council Policies and Procedures PRESENTED BY: Adrian Guerra, City Attorney RECOMMENDATION: Consider Possible Revisions to City Council Policies and Procedures and Additions of New Topics for Inclusion 2030 VISION STATEMENT: This staff report supports City Council Goal #5, “Engaging in Proactive Communication” by establishing policies and procedures for meetings of the City Council to promote community participation and promoting orderly meetings. BACKGROUND: The City Council adopted the “City of Grand Terrace Council Procedures” on August 10, 2006. These procedures were later revised on January 13, 2015. In recent City Council meetings, questions were raised about the City’s existing procedures and suggestions were provided for new issues to be addressed. The purpose of this agenda item is for the City Council to review the current “City of Grand Terrace Council Procedures”, consider text changes proposed by the City Attorney, and consider and provide direction on possible new issues to be included. The City Attorney will receive the direction from the City Council, incorporate the approved revisions, and will propose formal adoption of the updated policies and procedures at a future meet ing. DISCUSSION: Attachments A and B On February 12, 2019, the City Council approved a procedure for requesting Future Agenda items. The adopted policy provides as follows and is now stated on the agenda: “If a City Council Member is interested in a task or project that will require more than one hour of staff time to complete, the City Council Member shall submit the item to the City Manager and the item shall be agendized in this section to ask the City Council if time should be spent on preparing a report on the proposed item. To ensure compliance with the Brown Act, all item requests shall be submitted to the City Manager at least one week in advance of the meeting so that the item can be included on the agenda under this section. In order for any listed item to be placed on a future agenda for substantive discussion, the City Council must act by formal motion (i.e., requires a motion and a second) to direct the City Manager to place the item on a future agenda. Pursuant to the requirements of the G.8 Packet Pg. 101 Brown Act, no other items may be considered other than those listed in this section.” The City Attorney recommended that this new policy be incorporated into the “City of Grand Terrace Council Procedures” (“Policies and Procedures”). This policy is now proposed for inclusion into the Policies and Procedures as shown in Attachment A. While adding this new policy, the City Attorney identified other text changes that should be made. Those suggested revisions are also identified in Attachment A. Additionally, new language is being proposed for City Council consideration and discussion regarding decorum and order by the public during meetings. The proposed new language is shown below in italics: 1.1 DECORUM AND ORDER - PUBLIC. The City Council, elected by the public, must be free to discuss issues confronting the City in an orderly environment. a. Any member of the public who engages in disorderly behavior that actually disrupts, disturbs or otherwise impedes the orderly conduct of any City Council meeting shall, upon an order by the Presiding Officer or a majority of the City Council, be barred from further audience before the City Council during that meeting, pursuant to the provisions of subsection (c), below. b. Disorderly behavior under subsection (a) may include, but is not limited to, the following: (1) Speaking without being recognized by the Presiding Officer. (2) Continuing to speak after the allotted time has expired. (3) Speaking on an item at a time not designated for discussion by the public of that item. (4) Throwing objects. (5) Speaking on an issue that is not within the jurisdiction of the City Council. (6) Attempting to engage the audience rather than the City Council. (7) Refusing to modify conduct after being advised by the Presiding Officer that the conduct is disrupting the meeting or disobeying any other lawful order of the Presiding Officer or a majority of the City Council. c. Enforcement. The rules of conduct while addressing the City Council set forth above shall be enforced in the following manner: G.8 Packet Pg. 102 (1) Call to order and warning to desist. Whenever practicable, the Presiding Officer or a majority of the City Council shall give a warning to the person who is breaching the rules of conduct to be orderly and to comply with the rules of conduct hereunder. Such a warning shall articulate the rule of conduct being violated and the manner in which the person must comply. A warning shall not be necessary when it would not be effective under the circumstances, including when, but not limited to, the disturbance is such that the warning cannot be heard above the noise, or the conduct of the person or persons constitutes an immediate threat to public safety, such as the throwing of objects or specific threats of harm and the apparent, present ability to carry out such threats. A warning shall also not be necessary when an individual violates the rules of conduct more than once during a Council meeting, or continuously violates the rules of conduct Council meeting after Council meeting. (2) Order barring person from meeting. A person who engages in disorderly behavior shall be barred from the remainder of that council meeting by the Presiding Officer or a majority of the City Council when that person: (i) continues the disorderly behavior after receiving a warning pursuant to subsection (c)(1); (ii) ceases the disorderly behavior upon receiving a warning pursuant to subsection (c)(1), but later in the same council meeting resumes such disorderly behavior; or (iii) engages in disorderly behavior and no warning is practicable under the circumstances, pursuant to subsection (c)(1). The continuation of disorderly behavior after receiving a warning, repeated disorderly behavior during a Council meeting, disorderly behavior at Council meeting after Council meeting, or disorderly behavior that is so significant that a warning cannot be given, constitutes the type of behavior that actually disrupts, disturbs or otherwise impedes the orderly conduct of a City Council meeting. (3) Removal. If the person barred from the meeting does not voluntarily remove him/herself upon being instructed to do so by the Presiding Officer or a majority of the City Council, the Presiding Officer or the majority of the City Council may direct the sergeant-at-arms to remove that person from the Council chambers. G.8 Packet Pg. 103 The City Attorney recommends that the City Council consider and provide direction on this issue or any other area in the existing Policies and Procedures for revision. In considering the overall Policies and Procedures, the City Coun cil may want to consider and compare the City of Bell “Manual of Procedural Guideline for the Conduct of City Council and Constituent Body/Commission Meetings.” A copy is attached as Attachment B. This policy was adopted following the Bell scandal with the goal of ensuring community participation and promoting orderly meetings. The Bell policy is very comprehensive and addresses a variety of issues not currently covered by the City’s Policies and Procedures, such as corrections of actions, power of subpoena , and procedures to censure council members. Attachment C One new area that was raised for possible inclusion into the City’s Policies and Procedures is a Code of Ethics. Not all cities have a Code of Ethics, so it is not uncommon for Grand Terrace not to have an adopted Code of Ethics. In Attachment C, the City Attorney has located and presented sample Codes of Ethics from the cities of Sunnyvale, Riverside, Irvine, Bell, and Santa Clara. Additionally, a copy of the Institute for Local Governments Guidelines for Code of Ethics is enclosed. The City Attorney recommends that the City Council consider and provide direction on whether to adopt a Code of Ethics and, if so, whether there is a particular sample it prefers. The City Council can also provide direction on issues to be addressed. For example, the city of Santa Clara adopted an “Ethical Standards For Contractors Seeking To Enter Into An Agreement With The City Of Santa Clara, California.” Attachment D One suggestion received was to place a time limitati on on the duration of City Council meetings. The reasoning behind a time limitation is two-fold. First, there is a thought that the later a meeting lasts into the evening, there is less likelihood of public participation. Second, there is a concern that de cision-makers will be more tired, which could affect productive decision-making. In Monterey Park, for example and as shown in Attachment D, the City Council adopted a policy whereby a City Council meeting is required to end at 11 p.m. In practice, when the City Council has a meeting that extends to 11 p.m., the Mayor will request a motion to extend the meeting and for a certain length of time. If the motion is adopted, the meeting will be allowed to continue. Otherwise, the meeting would end at or close t o 11:00 p.m. The City Attorney recommends that the City Council consider and provide direction on whether to adopt a time limitation on the duration of City Council meetings. Americans with Disabilities Act Currently, City Council agendas state: “The City of Grand Terrace complies with the Americans with Disabilities Act of 1990. If you require special assistance to participate G.8 Packet Pg. 104 in this meeting, please call the City Clerk’s office at (909) 824-6621 at least 48 hours prior to the meeting.” To promote this purpose, one recommendation is to for the Mayor to orally announce this statement at the start of the meeting along with other standard protocols orally announced. Recently, a question was raised about the accessible seating in the Council Chambers. Accessible seating is intended for use by disabled persons. The City, as with most cities, does not have any additional rules or policies regarding accessible seating. If the City Council desires to adopt any rules or discuss ADA accommodations, the City Attorney requests direction from the City Council. Conclusion The City Attorney recommends that the City Council consider and provide direction on the Policies and Procedures. The City Attorney will receive the direction from the City Council, make the necessary revisions, and will propose formal adoption of updated policies and procedures at a future meeting. FISCAL IMPACT: None. ATTACHMENTS: • Attachment A - Proposed Text Changes to City Council Procedures(PDF) • Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission Meetings (PDF) • Attachment C- Sample Codes of Ethics (PDF) • Attachment D - Monterey Park Resolution Regarding Time Limitations on Meetings (PDF) APPROVALS: Adrian Guerra Completed 06/20/2019 5:17 PM City Attorney Completed 06/20/2019 5:18 PM Finance Completed 06/21/2019 9:53 AM City Manager Completed 06/21/2019 10:22 AM City Council Pending 06/25/2019 6:00 PM G.8 Packet Pg. 105 01247.0001/532785.5 6/21/2019 1 City of Grand Terrace Council Procedures Adopted August 10, 2006 Revised January 13, 2015 Revised ____, 2019 G.8.a Packet Pg. 106 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 i TABLE OF CONTENTS Page I MEETINGS ................................................................................................................... 1 1.1 REGULAR MEETINGS ............................................................................. 1 1.2 ADJOURNED MEETINGS ......................................................................... 1 1.3 SPECIAL MEETINGS ............................................................................... 1 1.4 EMERGENCY MEETINGS ....................................................................... 1 1.5 CLOSED SESSIONS - MATTERS OF DISCUSSION ............................. 1 1.6 CLOSED SESSIONS - REPORT OF ACTION/STATEMENT OF REASONS ................................................................................................. 2 1.7 QUORUM .................................................................................................. 2 II ORDER OF BUSINESS ............................................................................................... 2 2.1 AGENDA .................................................................................................... 2 2.2 AGENDA DEADLINE .............................................................................. 43 2.3 CALL TO ORDER ................................................................................... 43 2.4 ROLL CALL ............................................................................................... 4 2.5 ABSENCE OF CITY CLERK ..................................................................... 4 2.6 PREPARATION/APPROVAL OF MINUTES ............................................. 4 2.7 PUBLIC HEARINGS .................................................................................. 4 2.8 RESOLUTIONS ......................................................................................... 5 2.9 ORDINANCES ........................................................................................... 5 2.10 URGENCY ORDINANCES (EMERGENCY) ............................................ 65 2.11 CONSIDERATION OF ITEMS NOT ON THE CITY COUNCIL AGENDA .................................................................................................. 65 2.12 FUTURE AGENDA REQUESTS .............. Error! Bookmark not defined.5 2.13 ADJOURNMENT ....................................................................................... 6 G.8.a Packet Pg. 107 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 ii III PRESIDING OFFICER ................................................................................................ 6 3.1 PRESIDING OFFICER .............................................................................. 6 3.2 PARTICIPATION OF PRESIDING OFFICER ............................................ 6 3.3 QUESTION (MOTION) TO BE STATED ................................................. 6 3.4 SIGNING OF DOCUMENT .................................................................... 76 3.5 MAINTENANCE OF ORDER .................................................................. 76 IV RULES, DECORUM, AND ORDER ............................................................................ 7 4.1 POINTS OF ORDER ................................................................................. 7 4.2 DECORUM AND ORDER – COUNCIL MEMBERS ................................... 7 4.3 DECORUM AND ORDER – EMPLOYEES ............................................. 87 4.4 DECORUM AND ORDER – PUBLIC ....................................................... 8 4.5 PERSONAL INTEREST ........................................................................ 108 4.6 LIMITATION OF DEBATE ..................................................................... 108 4.7 DISSENT AND PROTEST ..................................................................... 108 4.8 PROCEDURES AND RULES ............................................................... 108 V ADDRESSING THE COUNCIL ................................................................................ 108 5.1 MANNER OF ADDRESSING THE COUNCIL ...................................... 108 5.2 TIME LIMITATION ................................................................................. 108 5.3 ADDRESSING THE COUNCIL AFTER MOTION IS MADE ................. 119 5.4 WRITTEN COMMUNICATION .............................................................. 119 VI MOTIONS ............................................................................................................... 119 6.1 PROCESSING OF MOTIONS .............................................................. 119 6.2 DIVISION OF MOTION ......................................................................... 119 6.3 ORDER OF MOTIONS ......................................................................... 119 6.4 PARTICULAR MOTIONS, PURPOSE, AND CRITERIA ...................... 1210 G.8.a Packet Pg. 108 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 iii VII VOTING ............................................................................................................... 1311 7.1 VOTING PROCEDURE ...................................................................... 1311 7.2 VOTING ............................................................................................... 1311 7.3 FAILURE TO VOTE............................................................................. 1311 7.4 RECONSIDERATION .......................................................................... 1311 VIII ROSENBERG’S RULES OF ORDER ................................................................. 1412 G.8.a Packet Pg. 109 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 I MEETINGS 1.1 REGULAR MEETINGS. The Regular City Council Meetings are held on the second and fourth Tuesday of every month, beginning at 6:00 p.m. 1.2 ADJOURNED MEETINGS. Any regular or adjourned meeting may be adjourned to a time, place, and date certain, but not beyond the next regular meeting. 1.3 SPECIAL MEETINGS. A special meeting may be called at any time by the Presiding Officer of the legislative body of a local agency, or by a majority of the members of the legislative body, by delivering written notice to each member of the legislative body and to each local newspaper of general circulation and radio or television station requesting notice in writing. The notice shall be delivered personally, by fax or e-mail or by any other means and shall be received at least 24-hours before the time of the meeting as specified in the notice. The call and notice shall specify the time and place of the special meeting and the business to be transacted or discussed. No other business shall be considered at these meetings by the legislative body. The written notice may be dispensed with as to any member who at, or prior to, the time the meeting convenes files with the clerk or secretary of the legislative body a written waiver of notice. The waiver may be given by telegram, fax or e-mail. The written notice may also be dispensed with as to any member who is actually present at the meeting at the time it convenes. The call and notice shall be posted at least 24 hours prior to the special meeting in a location that is freely accessible to members of the public. 1.4 EMERGENCY MEETINGS. In the case of an emergency situation involving matters upon which prompt action is necessary due to the disruption or threatened disruption of public facilities, a legislative body may hold an emergency meeting without complying with either the 24-hour notice requirement or the 24-hour posting requirement of Government Code Section 54956, or both of the notice and posting requirements. 1.5 CLOSED SESSIONS - MATTERS OF DISCUSSION. Any matter proposed to be considered in closed session must appear on the posted agenda unless added on an emergency basis in the same manner as required for items on the open agenda. Closed session item descriptions shall generally comply with Government Code Section 54954.5. Following the conclusion of closed session, any action taken shall be reported in open session if required by Government Code Section 54957.1. All meetings of the Council shall be open to the public; however, the Council may hold Closed Sessions, from which the public may be excluded, for consideration of the following subjects: a. Pending litigation; b. Threatened or anticipated litigation against the local agency; G.8.a Packet Pg. 110 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 2 c. Commencement of litigation; d. Real estate negotiations; e. Public Employment; and f. Labor Negotiations 1.6 CLOSED SESSIONS - REPORT OF ACTION/STATEMENT OF REASONS. Any matter proposed to be considered in closed session must appear on the posted agenda unless added on an emergency basis in the same manner as required for items on the open agenda. Closed session item descriptions shall generally comply with Government Code Section 554954.5. Following the conclusion of closed session, any action taken shall be reported in open session if required by Government Code Section 54957.1. Prior to, or after, a Closed Session, the Council shall state the general reason, or reasons, for the Closed Session. The Council may consider only those items covered in the statement. 1.7 QUORUM. A majority of the Council (three members) shall be sufficient to conduct business. In the absence of a majority of the Council Members from a regular or adjourned meeting, the City Clerk may declare the meeting adjourned to a stated day and hour. Motions may be passed by a 2-1 vote if only three Members are present. However, the following matters require a minimum of three affirmative votes: a. Ordinances (emergency/urgency ordinances require four affirmative votes); b. Resolutions; b.c. Orders for payment of money; c.d. Selection of Officers (exclusive of Presiding Officer). II ORDER OF BUSINESS 2.1 AGENDA. The order of business of Council meetings will be listed in the Agenda prepared by the City Clerk. The Council will follow the order of business in the prepared Agenda; items of general, or special, interest may be taken out of order by the Mayor or by a majority vote of the Council. a. Posting. The Agenda will be posted in three public places designated by Council for such purpose, and will be available for public review at City Hall at least 72-hours prior to the commencement of regular meetings. All Agenda packet material G.8.a Packet Pg. 111 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 3 will be available for review at City Hall and at Council Chambers. The designated public places for posting the agenda are the Civic Center Foyer, Library and the Senior Center. b. Consent Calendar. Consent Calendar items are considered by Council to be routine and noncontroversial and will all be enacted by one motion in the form listed. There will be no separate discussion of these items prior to the time the Council votes on the motion to adopt unless members of the Council, Staff, or the public request specific items be removed from the Consent Calendar for separate action. The Check Register will routinely appear on the Consent Calendar. c. 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 comment or may request a matter be agendized for a future meeting. d. Code Section 54954.3 re: Public Comment says, “Every agenda for regular meeting shall provide an opportunity for members of the public to directly address the legislative body on any item of interest to the public. The subject matter must be within the jurisdiction of the legislative body, provided that no action shall be taken. d. Requests for Future Agenda Items By City Council. The agenda shall contain a section entitled “Requests for Future Agenda Items by City Council.” If a City Council Member is interested in a task or project that will require more than one hour of staff time to complete, the City Council Member shall submit the item to the City Manager and the item shall be agendized in this section to ask the City Council if time should be spent on preparing a report on the proposed item. To ensure compliance with the Brown Act, all item requests shall be submitted to the City Manager at least one week in advance of the meeting so that the item can be included on the agenda under this section. In order for any listed item to be placed on a future agenda for substantive discussion, the City Council must act by formal motion (i.e., requires a motion and a second) to direct the City Manager to place the item on a future agenda. Pursuant to the requirements of the Brown Act, no other items may be considered other than those listed in this section. G.8.a Packet Pg. 112 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 4 e. Public Comment on Agenda Items. Members of the public will be given an opportunity to address items on the agenda, before action is taken on the items, by filing out a speaker card indicating their desire to speak on a specific agenda item. 2.2 REQUESTS FOR FUTURE AGENDA ITEMS BY THE PUBLICAGENDA DEADLINE. Any request to have an item placed on a future agenda must be made in writing and submitted to the City Clerk’s office and the request will be processed in accordance with Council Procedures. The City Clerk will provide copies of the request to Council Members prior to the next Council meeting; however, it is the City Manager's, or majority of Council's, discretion whether to place the item on the next regular Agenda. 2.3 CALL TO ORDER. The meeting of the Council shall be called to order by the Mayor or, in his/her absence, the Mayor Pro Tem. (See Section 3.1 for absence of Mayor and Mayor Pro Tem.) In the absence of all Council Members, the City Clerk shall call the meeting to order and declare the same adjourned to a stated day and hour. The meetings will be opened with invocation and the Pledge of Allegiance. 2.4 ROLL CALL. A roll call of Mayor and Council Members will be conducted by the City Clerk, who enters the names of those present and those absent in the Minutes. 2.5 ABSENCE OF CITY CLERK. If the City Clerk is absent from a Council meeting, the Deputy City Clerk acts in the Clerk's behalf. If there is no Clerk or Deputy present, the Mayor shall appoint a Council Member to serve as City Clerk Pro Tempore (Gov’t Code § 36804). 2.6 PREPARATION/APPROVAL OF MINUTES. It is the City Clerk's responsibility to maintain a record (Minutes) of Council meetings. The Clerk shall have exclusive responsibility for preparation of the Minutes, and any directions for changes in the Minutes may be made only by Council action. In order to maintain a full and true Minute record, the Minutes shall consist of a clear and concise statement of each and every Council action including motions made and the vote thereon. Items may be included if considered to be particularly relevant or otherwise necessary by the Clerk. Action Minutes will be taken of all City Council meetings (Regular, Special; Emergency) by the City Clerk, or designee. Any Council Member may request a statement be included in the Minutes by indicating “for the record.” 2.7 PUBLIC HEARINGS. The following procedure is suggested for conducting public hearings: a. Presentation of Agenda Item G.8.a Packet Pg. 113 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 5 b. Written Communications c. City Council questions/staff comments d. Public Hearing Opened e. Applicant’s comments (applicant not limited to 3-minutes) f. Oral testimony—favor and opposition (speakers limited to 3- minutes) g. Applicant’s rebuttal (applicant not limited to 3-minutes) h. Public Hearing Closed i. City Council deliberation Council Members should refrain from asking questions or, in any way, interfere with the “audience participationoral testimony” portion of the Public Hearing. 2.8 RESOLUTIONS Resolutions Not Prepared in Advance of a City Council meeting: When a resolution has not been prepared in advance of a City Council meeting, the procedure shall be to instruct the City Attorney to prepare a resolution for presentation at the next Council Meeting. Urgency Resolutions: In matters of urgency, a resolution may be presented verbally, with specific instructions to the City Attorney and staff for written preparation of the urgency resolution. After the resolution has been verbally stated, the resolution may be adopted by three affirmative votes. Urgency resolutions shall be avoided except when absolutely necessary. 2.9 ORDINANCES Consent Calendar Agenda Item #1, on the City Council agenda shall waives full reading of all ordinances on the City Council agenda. Council will approve the introduction, or first reading, of the ordinance, by title only and if approved, the adoption and second reading will be scheduled for the following Council meeting. With the exception of urgency (emergency) ordinances, no ordinance shall be adopted by the Council on the date of introduction, nor within five days thereafter, nor at any time other than a regular or adjourned regular meeting. An ordinance must be adopted, at its second reading, by at least three affirmative votes, and becomes effective 30 days thereafter (an urgency ordinance requires a minimum of four affirmative votes and becomes effective immediately, Ref: Sec. 2.10). G.8.a Packet Pg. 114 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 6 If an ordinance is altered after first reading, a motion for an amended first reading is required. The ordinance shall not be considered for adoption until five days thereafter. Correction of a typographical or clerical error does not constitute alteration of the ordinance. 2.10 URGENCY ORDINANCES (EMERGENCY). An ordinance which is necessary to go into effect immediately and requires a four-fifths vote to do so. It is required, however, to be on the regular posted City Council agenda. 2.11 CONSIDERATION OF ITEMS NOT ON THE CITY COUNCIL AGENDA. No matters, other than those appearing on the Agenda, will be acted upon by the City Council, except matters which are deemed to be of an emergency nature requiring action prior to the next regular meeting and which arose after the posting of the Agenda. Adding such items requires a four-fifths vote of the City Council or a unanimous vote if less than all members are present. 2.12 ADJOURNMENT. Adjournment of the meeting to the next regular meeting does not require a motion. A motion is required to adjourn a meeting to an adjourned meeting specifying the date, time, and place of said adjourned meeting. III PRESIDING OFFICER 3.1 PRESIDING OFFICER. The Mayor shall be the Presiding Officer at all meetings of the Council. In the absence of the Mayor, the Mayor Pro Tem shall preside. In the absence of both the Mayor and Mayor Pro Tem, the Council shall elect a temporary Presiding Officer to serve until the arrival of the Mayor or Mayor Pro Tem, or until adjournment. The terms “Presiding Officer,” “Mayor,” and “Chair” shall be used interchangeably within this manual. 3.2 PARTICIPATION OF PRESIDING OFFICER. The Presiding Officer is, primarily, responsible for the conduct of the meeting; may move, second, and debate from the Chair, subject only to such limitations of debate as are imposed on all Council Members; and shall not be deprived of any such rights and privileges. 3.3 QUESTION (MOTION) TO BE STATED. The Presiding Officer shall verbally restate each motion immediately prior to calling for the vote. Following the vote, the City Clerk shall announce whether the motion carried or was defeated. In cases where the action of the Council may be unclear for those in the audience, the Mayor shall summarize the action of the Council before proceeding to the next item of business. G.8.a Packet Pg. 115 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 7 3.4 SIGNING OF DOCUMENT. Subject to Council policy, the Mayor shall sign ordinances, resolutions, and contracts approved by the Council at meetings at which he/she is in attendance. In the event of his/her absence, the Mayor Pro Tem shall sign all such documents approved and adopted by Council. 3.5 MAINTENANCE OF ORDER. The Mayor is responsible for the maintenance of order and decorum at all times. No person shall be allowed to speak who has not first been recognized by the Chair. All questions and remarks shall be addressed to the Chair. IV RULES, DECORUM, AND ORDER 4.1 POINTS OF ORDER. The Presiding Officer shall determine all Points of Order subject to the right of any Council Member to appeal to the Council. If any appeal is taken, the question shall be in the following form:, “sShall the decision of the Presiding Officer be sustained?” In this event, a majority vote shall govern and conclusively determine such question of order. 4.2 DECORUM AND ORDER – COUNCIL MEMBERS. a. Every Council Member desiring to speak shall address the Chair Presiding Officer and, upon recognition by the MayorPresiding Officer, shall confine himself/herself to the question under debate. b. Every Council Member desiring to question the administrative staff shall address questions to the City Manager or City Attorney, who shall be entitled to either answer the inquiry or designate a member of staff for that purpose. c. A Council Member, once recognized, shall not be interrupted while speaking unless called to order by the Mayor, unless a point of order is raised by another Council Member, or the speaker chooses to yield to questions from another Council Member. d. A Council Member who is called to order while speaking shall cease speaking until the question of order is determined. If ruled to be not in order, the Council Member shall remain silent or shall alter the remarks so as to comply with rules of the Council. e. The Mayor and Council Members shall accord the utmost courtesy to each other, to City employees, and to the public appearing before the Council and shall refrain at all times from rude and derogatory remarks, reflections as to integrity, abusive comments, and statements as to motives and personalities. G.8.a Packet Pg. 116 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 8 f. Any Council Member may move to require the Mayor to enforce the rules, and the affirmative vote of a majority of the Council shall require the Mayor to so act. 4.3 DECORUM AND ORDER – EMPLOYEES. Members of the Administrative staff and employees of the City shall observe the same rules of procedure and decorum applicable to members of the Council. The City Manager shall ensure that all City Employees observe such decorum. Any Staff member, including the City Manager, desiring to address the Council shall first be recognized by the Chair. All remarks shall be addressed to the Chair, and not to anyone individual Council Member or public member. 4.4 DECORUM AND ORDER – PUBLIC. The City Council, elected by the public, must be free to discuss issues confronting the City in an orderly environment. a. Any member of the public who engages in disorderly behavior that actually disrupts, disturbs or otherwise impedes the orderly conduct of any City Council meeting shall, upon an order by the Presiding Officer or a majority of the City Council, be barred from further audience before the City Council during that meeting, pursuant to the provisions of subsection (c), below. b. Disorderly behavior under subsection (a) may include, but is not limited to, the following: (1) Speaking without being recognized by the Presiding Officer. (2) Continuing to speak after the allotted time has expired. (3) Speaking on an item at a time not designated for discussion by the public of that item. (4) Throwing objects. (5) Speaking on an issue that is not within the jurisdiction of the City Council. (6) Attempting to engage the audience rather than the City Council. (7) Refusing to modify conduct after being advised by the Presiding Officer that the conduct is disrupting the meeting, or disobeying any other lawful order of the Presiding Officer or a majority of the City Council. G.8.a Packet Pg. 117 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 9 c. Enforcement. The rules of conduct while addressing the City Council set forth above shall be enforced in the following manner: (1) Call to order and warning to desist. Whenever practicable, the Presiding Officer or a majority of the City Council shall give a warning to the person who is breaching the rules of conduct to be orderly and to comply with the rules of conduct hereunder. Such a warning shall articulate the rule of conduct being violated and the manner in which the person must comply. A warning shall not be necessary when it would not be effective under the circumstances, including when, but not limited to, the disturbance is such that the warning cannot be heard above the noise, or the conduct of the person or persons constitutes an immediate threat to public safety, such as the throwing of objects or specific threats of harm and the apparent, present ability to carry out such threats. A warning shall also not be necessary when an individual violates the rules of conduct more than once during a Council meeting, or continuously violates the rules of conduct Council meeting after Council meeting. (2) Order barring person from meeting. A person who engages in disorderly behavior shall be barred from the remainder of that council meeting by the Presiding Officer or a majority of the City Council when that person: (i) continues the disorderly behavior after receiving a warning pursuant to subsection (c)(1); (ii) ceases the disorderly behavior upon receiving a warning pursuant to subsection (c)(1), but later in the same council meeting resumes such disorderly behavior; or (iii) engages in disorderly behavior and no warning is practicable under the circumstances, pursuant to subsection (c)(1). The continuation of disorderly behavior after receiving a warning, repeated disorderly behavior during a Council meeting, disorderly behavior at Council meeting after Council meeting, or disorderly behavior that is so significant that a warning cannot be given, constitutes the type of behavior that actually disrupts, disturbs or otherwise impedes the orderly conduct of a City Council meeting. (3) Removal. If the person barred from the meeting does not voluntarily remove him/herself upon being instructed to do so by the Presiding Officer or a majority of the City Council, the Presiding Officer or the majority of the City Council may G.8.a Packet Pg. 118 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 10 direct the sergeant-at-arms to remove that person from the Council chambers. Public members attending Council meetings shall observe the same rules of order and decorum applicable to the Council. Any person making impertinent and slanderous remarks, or who becomes boisterous while addressing the Council, or while attending a Council meeting, or engages any other disorderly conduct which disrupts, disturbs or otherwise impedes the orderly conduct of any Council meeting, shall be requested to leave the room and such person may be barred from further audience before the Council. 4.5 PERSONAL INTEREST. No Council Members prevented from voting by legal conflict of interest shall remain at the Council dais during the debate and vote on any such matter. In the event of such conflict, the Council Members shall state for the record the basis for the conflict of interest and leave the Council dais prior to the commencement of discussion of the issue. 4.6 LIMITATION OF DEBATE. No Council Member shall be allowed to speak more than once upon anyone subject until every other Council Member choosing to speak has spoken. Merely asking a question or making a suggestion is not considered as speaking. 4.7 DISSENT AND PROTEST. Any Council Member shall have the right to express dissent from, or protest to, any action of the Council and request that the reason be entered into the Minutes. 4.8 PROCEDURES AND RULES. In a rule to govern a point of procedure, Rosenberg’s Rules of Order shall govern, unless there is a conflict between the rules set forth herein in Sections 1.1 through 7.4, at which point Sections 1.1 through 7.4 shall govern. V ADDRESSING THE COUNCIL 5.1 MANNER OF ADDRESSING THE COUNCIL. Any person desiring to address the Council shall fill out a request to speak form and wait to be recognized by the Mayor, and after being recognized shall proceed to the podium, or microphone. Such persons are requested to, and state for the record his or her name and address. Remarks are to be limited to the question subject under discussion. 5.2 TIME LIMITATION. Any public member addressing the Council shall limit his or her address to three (3) minutes. The Mayor or a Council Member may move to extend the time limitation which shall be extended upon a majority vote of the Council. When any group of persons wishes to address the Council on the same subject matter, it shall be proper for the Mayor to request that a spokesman be G.8.a Packet Pg. 119 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 11 chosen to represent the group, so as to avoid unnecessary repetition. A speaker may not yield time to another speaker. 5.3 ADDRESSING THE COUNCIL AFTER MOTION IS MADE. After a motion has been made, no person shall address the Council without securing permission by a majority consensus of the Council. 5.4 WRITTEN COMMUNICATION. Unless specifically requested otherwise, the City Manager is authorized to receive and open all mail addressed to the City Council and take any immediate administrative action required between Council meetings, which does not require specific Council action. Any communication requiring Council action will be reported to the Council at the next possible meeting, together with a report and recommendation of the City Manager. VI MOTIONS 6.1 PROCESSING OF MOTIONS. When a motion is made and seconded, it shall be restated by the Presiding Officer before debate. A motion shall not be withdrawn by the mover without the consent of the Council Member seconding it and the approval of Council. 6.2 DIVISION OF MOTION. If a motion contains two or more divisionable divisible propositions, the Mayor may, and upon request of a Council Member shall (unless appealed by another Council Member), divide the motion. 6.3 ORDER OF MOTIONS. When multiple motions are before the body, the last motion is voted on first. a. Non-Debatable Motions: a. Adjourn, b. Recess c. Fix the time to adjourn b. Super Majority Votes: (2/3 vote required) a. Limit debate b. Close nominations c. Object to the consideration of an item d. Suspend the rules G.8.a Packet Pg. 120 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 12 e. Reconsider – (A member of the majority of the previous vote must motion at the same or next meeting.) 6.4 PARTICULAR MOTIONS, PURPOSE, AND CRITERIA a. Motion to Adjourn: a. Purpose. To terminate a meeting. b. Debatable or Amendable. No, except a motion to adjourn to another time is debatable and amendable as to the time to which the meeting is to be b. Motion to Refer to Commission, Committee, or Staff: a. Purpose. To refer the question before the Council to a commission, committee, or to the City Staff for the purpose of investigating or studying the proposal and to make a report back to the Council. b. If the motion fails, discussion or vote on the question resumes. Debatable or Amendable. Yes. c. Motion to Amend: a. Purpose. To modify or change a motion that is being considered by the Council so it will express more satisfactorily the will of the members. If there are two amendments, the second amendment is voted upon first if it carries, it automatically cancels the first amendment, and the vote is taken on the amended motion. An amendment motion relating to a different matter shall not be in order. b. Debatable or Amendable. Yes. d. Postpone Indefinitely: a. Purpose. To prevent further discussion and voting on the main motion. If the motion fails, discussion and voting on the main motion resumes. If it passes, the subject of main motion shall not be brought up again for the remainder of the meeting. b. Debatable or Amendable. It is debatable but not amendable. e. Main Motion. a. Purpose. The primary proposal or question before the Council for discussion and decision. G.8.a Packet Pg. 121 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 13 b. Debatable or Amendable. Yes. VII VOTING 7.1 VOTING PROCEDURE. Motions will be adopted by either electronic voting system, voice or roll call vote. The results of the vote shall be entered in full in the minutes. 7.2 VOTING. Every ordinance, resolution, and payment of money requires three affirmative votes. Emergency ordinances require four affirmative votes. Unless otherwise advised by the City Attorneyrequired by law, all other actions of the Council require a majority vote of the Council Members present. 7.3 FAILURE TO VOTE. Every Council Member should vote unless disqualified for a personal conflict of interest or for cause accepted by the Council or by opinion of the City Attorney. Self-disqualification, without cause, which results in a tie vote shall be avoided; but no Council Member shall be forced to vote. A Council Member who abstains shall, in effect, consent that a majority of the quorum may act for him or her. Tie votes shall be lost motions and may be reconsidered. 7.4 RECONSIDERATION. After motion and vote by the Council, such action may be reconsidered or rescinded only in the following manner: a. Reconsideration: A motion to set aside a vote (to reconsider) on a main motion shall always be in order at the same meeting or at the next regular Council meeting following the action. The motion can be made by any Council Member who voted affirmatively on the matter. If the motion to reconsider passes, the effect thereof is to overrule and cancel the prior action and rehear the original subject. b. Lost Motion: A lost motion is one that fails to receive the necessary number of votes to carry. Tie votes result in a lost motion. A tie vote which has resulted from there being present less than a full Council shall be automatically reconsidered at the next Council meeting at which all members are present. Lost motions may be renewed at any subsequent Council meeting. To revive a lost motion at the same meeting, the proper action is a motion to reconsider (discussed above). G.8.a Packet Pg. 122 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 14 VIII ROSENBERG’S RULES OF ORDER Rosenberg’s Rules of Order REVISED 2011 Simple Rules of Parliamentary Procedure for the 21st Century By Judge Dave Rosenberg G.8.a Packet Pg. 123 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 15 Introduction The rules of procedure at meetings should be simple enough for most people to understand. Unfortunately, that has not always been the case. Virtually all clubs, associations, boards, councils and bodies follow a set of rules — Robert’s Rules of Order — which are embodied in a small, but complex, book. Virtually no one I know has actually read this book cover to cover. Worse yet, the book was written for another time and for another purpose. If one is chairing or running a parliament, then Robert’s Rules of Order is a dandy and quite useful handbook for procedure in that complex setting. On the other hand, if one is running a meeting of say, a five-member body with a few members of the public in attendance, a simplified version of the rules of parliamentary procedure is in order. Hence, the birth of Rosenberg’s Rules of Order. What follows is my version of the rules of parliamentary procedure, based on my decades of experience chairing meetings in state and local government. These rules have been simplified for the smaller bodies we chair or in which we participate, slimmed down for the 21st Century, yet retaining the basic tenets of order to which we have grown accustomed. Interestingly enough, Rosenberg’s Rules has found a welcoming audience. Hundreds of cities, counties, special districts, committees, boards, commissions, neighborhood associations and private corporations and companies have adopted Rosenberg’s Rules in lieu of Robert’s Rules because they have found them practical, logical, simple, easy to learn and user friendly. This treatise on modern parliamentary procedure is built on a foundation supported by the following four pillars: 1. Rules should establish order. The first purpose of rules of parliamentary procedure is to establish a framework for the orderly conduct of meetings. 2. Rules should be clear. Simple rules lead to wider understanding and participation. Complex rules create two classes: those who understand and participate; and those who do not fully understand and do not fully participate. 3. Rules should be user friendly. That is, the rules must be simple enough that the public is invited into the body and feels that it has participated in the process. 4. Rules should enforce the will of the majority while protecting the rights of the minority. The ultimate purpose of rules of procedure is to encourage discussion and to facilitate decision making by the body. In a democracy, majority rules. The rules must enable the majority to express itself and fashion a result, while permitting the minority to also express itself, but not dominate, while fully participating in the process. Establishing a Quorum The starting point for a meeting is the establishment of a quorum. A quorum is defined as the minimum number of members of the body who must be present at a meeting for business to be legally transacted. The default rule is that a quorum is one more than half the body. For example, in a five-member body a quorum is three. When the body has three members present, it can legally transact business. If the body has less than a quorum of members present, it cannot legally transact business. And even if the body has a quorum to begin the meeting, the body can lose the quorum during the meeting when a member departs (or even when a member leaves the dais). When that occurs the body loses its ability to transact business until and unless a quorum is reestablished. The default rule, identified above, however, gives way to a specific rule of the body that establishes a quorum. For example, the rules of a particular five-member body may indicate that a quorum is four members for that particular body. The body must follow the rules it has established for its quorum. In the absence of such a specific rule, the quorum is one more than half the members of the body. The Role of the Chair While all members of the body should know and understand the rules of parliamentary procedure it is the chair of the body who is charged with applying the rules of conduct of the meeting. The chair should be well versed in those rules. For all intents and purposes, the chair makes the final ruling on the rules every time the chair states an action. In fact, all decisions by the chair are final unless overruled by the body itself. Since the chair runs the conduct of the meeting, it is usual courtesy for the chair to play a less active role in the debate and discussion than other members of the body. This does not mean that the chair should not participate in the debate or discussion. To the contrary, G.8.a Packet Pg. 124 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 16 as a member of the body, the chair has the full right to participate in the debate, discussion and decision- making of the body. What the chair should do, however, is strive to be the last to speak at the discussion and debate stage. The chair should not make or second a motion unless the chair is convinced that no other member of the body will do so at that point in time. The Basic Format for an Agenda Item Discussion Formal meetings normally have a written, often published agenda. Informal meetings may have only an oral or understood agenda. In either case, the meeting is governed by the agenda and the agenda constitutes the body’s agreed-upon roadmap for the meeting. Each agenda item can be handled by the chair in the following basic format: First, the chair should clearly announce the agenda item number and should clearly state what the agenda item subject is. The chair should then announce the format (which follows) that will be followed in considering the agenda item. Second, following that agenda format, the chair should invite the appropriate person or persons to report on the item, including any recommendation that they might have. The appropriate person or persons may be the chair, a member of the body, a staff person, or a committee chair charged with providing input on the agenda item. Third, the chair should ask members of the body if they have any technical questions of clarification. At this point, members of the body may ask clarifying questions to the person or persons who reported on the item, and that person or persons should be given time to respond. Fourth, the chair should invite public comments, or if appropriate at a formal meeting, should open the public meeting for public input. If numerous members of the public indicate a desire to speak to the subject, the chair may limit the time of public speakers. At the conclusion of the public comments, the chair should announce that public input has concluded (or the public hearing, as the case may be, is closed). Fifth, the chair should invite a motion. The chair should announce the name of the member of the body who makes the motion. Sixth, the chair should determine if any member of the body wishes to second the motion. The chair should announce the name of the member of the body who seconds the motion. It is normally good practice for a motion to require a second before proceeding to ensure that it is not just one member of the body who is interested in a particular approach. However, a second is not an absolute requirement, and the chair can proceed with consideration and vote on a motion even when there is no second. This is a matter left to the discretion of the chair. Seventh, if the motion is made and seconded, the chair should make sure everyone understands the motion. This is done in one of three ways: 1. The chair can ask the maker of the motion to repeat it; 2. The chair can repeat the motion; or 3. The chair can ask the secretary or the clerk of the body to repeat the motion. Eighth, the chair should now invite discussion of the motion by the body. If there is no desired discussion, or after the discussion has ended, the chair should announce that the body will vote on the motion. If there has been no discussion or very brief discussion, then the vote on the motion should proceed immediately and there is no need to repeat the motion. If there has been substantial discussion, then it is normally best to make sure everyone understands the motion by repeating it. Ninth, the chair takes a vote. Simply asking for the “ayes” and then asking for the “nays” normally does this. If members of the body do not vote, then they “abstain.” Unless the rules of the body provide otherwise (or unless a super majority is required as delineated later in these rules), then a simple majority (as defined in law or the rules of the body as delineated later in these rules) determines whether the motion passes or is defeated. Tenth, the chair should announce the result of the vote and what action (if any) the body has taken. In announcing the result, the chair should indicate the names of the members of the body, if any, who voted in the minority on the motion. This announcement might take the following form: “The motion passes by a vote of 3-2, with Smith and Jones dissenting. We have passed the motion requiring a 10-day notice for all future meetings of this body.” Motions in General Motions are the vehicles for decision making by a body. It is usually best to have a motion before the G.8.a Packet Pg. 125 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 17 body prior to commencing discussion of an agenda item. This helps the body focus. Motions are made in a simple two-step process. First, the chair should recognize the member of the body. Second, the member of the body makes a motion by preceding the member’s desired approach with the words “I move … “ A typical motion might be: “I move that we give a 10- day notice in the future for all our meetings.” The chair usually initiates the motion in one of three ways: 1. Inviting the members of the body to make a motion, for example, “A motion at this time would be in order.” 2. Suggesting a motion to the members of the body, “A motion would be in order that we give a 10-day notice in the future for all our meetings.” 3. Making the motion. As noted, the chair has every right as a member of the body to make a motion, but should normally do so only if the chair wishes to make a motion on an item but is convinced that no other member of the body is willing to step forward to do so at a particular time. The Three Basic Motions There are three motions that are the most common and recur often at meetings: The basic motion. The basic motion is the one that puts forward a decision for the body’s consideration. A basic motion might be: “I move that we create a five- member committee to plan and put on our annual fundraiser.” The motion to amend. If a member wants to change a basic motion that is before the body, they would move to amend it. A motion to amend might be: “I move that we amend the motion to have a 10-member committee.” A motion to amend takes the basic motion that is before the body and seeks to change it in some way. The substitute motion. If a member wants to completely do away with the basic motion that is before the body, and put a new motion before the body, they would move a substitute motion. A substitute motion might be: “I move a substitute motion that we cancel the annual fundraiser this year.” “Motions to amend” and “substitute motions” are often confused, but they are quite different, and their effect (if passed) is quite different. A motion to amend seeks to retain the basic motion on the floor, but modify it in some way. A substitute motion seeks to throw out the basic motion on the floor, and substitute a new and different motion for it. The decision as to whether a motion is really a “motion to amend” or a “substitute motion” is left to the chair. So if a member makes what that member calls a “motion to amend,” but the chair determines that it is really a “substitute motion,” then the chair’s designation governs. A “friendly amendment” is a practical parliamentary tool that is simple, informal, saves time and avoids bogging a meeting down with numerous formal motions. It works in the following way: In the discussion on a pending motion, it may appear that a change to the motion is desirable or may win support for the motion from some members. When that happens, a member who has the floor may simply say, “I want to suggest a friendly amendment to the motion.” The member suggests the friendly amendment, and if the maker and the person who seconded the motion pending on the floor accepts the friendly amendment, that now becomes the pending motion on the floor. If either the maker or the person who seconded rejects the proposed friendly amendment, then the proposer can formally move to amend. Multiple Motions Before the Body There can be up to three motions on the floor at the same time. The chair can reject a fourth motion until the chair has dealt with the three that are on the floor and has resolved them. This rule has practical value. More than three motions on the floor at any given time is confusing and unwieldy for almost everyone, including the chair. When there are two or three motions on the floor (after motions and seconds) at the same time, the vote should proceed first on the last motion that is made. For example, assume the first motion is a basic “motion to have a five-member committee to plan and put on our annual fundraiser.” During the discussion of this motion, a member might make a second motion to “amend the main motion to have a 10- member committee, not a five-member committee to plan and put on our annual fundraiser.” And perhaps, during that discussion, a member makes yet a third motion as a “substitute motion that we not have an annual fundraiser this year.” The proper procedure would be as follows: G.8.a Packet Pg. 126 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 18 First, the chair would deal with the third (the last) motion on the floor, the substitute motion. After discussion and debate, a vote would be taken first on the third motion. If the substitute motion passed, it would be a substitute for the basic motion and would eliminate it. The first motion would be moot, as would the second motion (which sought to amend the first motion), and the action on the agenda item would be completed on the passage by the body of the third motion (the substitute motion). No vote would be taken on the first or second motions. Second, if the substitute motion failed, the chair would then deal with the second (now the last) motion on the floor, the motion to amend. The discussion and debate would focus strictly on the amendment (should the committee be five or 10 members). If the motion to amend passed, the chair would then move to consider the main motion (the first motion) as amended. If the motion to amend failed, the chair would then move to consider the main motion (the first motion) in its original format, not amended. Third, the chair would now deal with the first motion that was placed on the floor. The original motion would either be in its original format (five-member committee), or if amended, would be in its amended format (10-member committee). The question on the floor for discussion and decision would be whether a committee should plan and put on the annual fundraiser. To Debate or Not to Debate The basic rule of motions is that they are subject to discussion and debate. Accordingly, basic motions, motions to amend, and substitute motions are all eligible, each in their turn, for full discussion before and by the body. The debate can continue as long as members of the body wish to discuss an item, subject to the decision of the chair that it is time to move on and take action. There are exceptions to the general rule of free and open debate on motions. The exceptions all apply when there is a desire of the body to move on. The following motions are not debatable (that is, when the following motions are made and seconded, the chair must immediately call for a vote of the body without debate on the motion): Motion to adjourn. This motion, if passed, requires the body to immediately adjourn to its next regularly scheduled meeting. It requires a simple majority vote. Motion to recess. This motion, if passed, requires the body to immediately take a recess. Normally, the chair determines the length of the recess which may be a few minutes or an hour. It requires a simple majority vote. Motion to fix the time to adjourn. This motion, if passed, requires the body to adjourn the meeting at the specific time set in the motion. For example, the motion might be: “I move we adjourn this meeting at midnight.” It requires a simple majority vote. Motion to table. This motion, if passed, requires discussion of the agenda item to be halted and the agenda item to be placed on “hold.” The motion can contain a specific time in which the item can come back to the body.” I move we table this item until our regular meeting in October.” Or the motion can contain no specific time for the return of the item, in which case a motion to take the item off the table and bring it back to the body will have to be taken at a future meeting. A motion to table an item (or to bring it back to the body) requires a simple majority vote. Motion to limit debate. The most common form of this motion is to say, “I move the previous question” or “I move the question” or “I call the question” or sometimes someone simply shouts out “question.” As a practical matter, when a member calls out one of these phrases, the chair can expedite matters by treating it as a “request” rather than as a formal motion. The chair can simply inquire of the body, “any further discussion?” If no one wishes to have further discussion, then the chair can go right to the pending motion that is on the floor. However, if even one person wishes to discuss the pending motion further, then at that point, the chair should treat the call for the “question” as a formal motion, and proceed to it. When a member of the body makes such a motion (“I move the previous question”), the member is really saying: “I’ve had enough debate. Let’s get on with the vote.” When such a motion is made, the chair should ask for a second, stop debate, and vote on the motion to limit debate. The motion to limit debate requires a two-thirds vote of the body. Note: A motion to limit debate could include a time limit. For example: “I move we limit debate on this agenda item to 15 minutes.” Even in this format, the motion to limit debate requires a two-thirds vote of the body. A similar motion is a motion to object to consideration of an item. This motion is not debatable, and if passed, precludes the body from even considering an item on the agenda. It also requires a two-thirds vote. G.8.a Packet Pg. 127 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 19 Majority and Super Majority Votes In a democracy, a simple majority vote determines a question. A tie vote means the motion fails. So in a seven-member body, a vote of 4-3 passes the motion. A vote of 3-3 with one abstention means the motion fails. If one member is absent and the vote is 3-3, the motion still fails. All motions require a simple majority, but there are a few exceptions. The exceptions come up when the body is taking an action which effectively cuts off the ability of a minority of the body to take an action or discuss an item. These extraordinary motions require a two-thirds majority (a super majority) to pass: Motion to limit debate. Whether a member says, “I move the previous question,” or “I move the question,” or “I call the question,” or “I move to limit debate,” it all amounts to an attempt to cut off the ability of the minority to discuss an item, and it requires a two- thirds vote to pass. Motion to close nominations. When choosing officers of the body (such as the chair), nominations are in order either from a nominating committee or from the floor of the body. A motion to close nominations effectively cuts off the right of the minority to nominate officers and it requires a two-thirds vote to pass. Motion to object to the consideration of a question. Normally, such a motion is unnecessary since the objectionable item can be tabled or defeated straight up. However, when members of a body do not even want an item on the agenda to be considered, then such a motion is in order. It is not debatable, and it requires a two-thirds vote to pass. Motion to suspend the rules. This motion is debatable, but requires a two-thirds vote to pass. If the body has its own rules of order, conduct or procedure, this motion allows the body to suspend the rules for a particular purpose. For example, the body (a private club) might have a rule prohibiting the attendance at meetings by non-club members. A motion to suspend the rules would be in order to allow a non-club member to attend a meeting of the club on a particular date or on a particular agenda item. Counting Votes The matter of counting votes starts simple, but can become complicated. Usually, it’s pretty easy to determine whether a particular motion passed or whether it was defeated. If a simple majority vote is needed to pass a motion, then one vote more than 50 percent of the body is required. For example, in a five-member body, if the vote is three in favor and two opposed, the motion passes. If it is two in favor and three opposed, the motion is defeated. If a two-thirds majority vote is needed to pass a motion, then how many affirmative votes are required? The simple rule of thumb is to count the “no” votes and double that count to determine how many “yes” votes are needed to pass a particular motion. For example, in a seven-member body, if two members vote “no” then the “yes” vote of at least four members is required to achieve a two-thirds majority vote to pass the motion. What about tie votes? In the event of a tie, the motion always fails since an affirmative vote is required to pass any motion. For example, in a five-member body, if the vote is two in favor and two opposed, with one member absent, the motion is defeated. Vote counting starts to become complicated when members vote “abstain” or in the case of a written ballot, cast a blank (or unreadable) ballot. Do these votes count, and if so, how does one count them? The starting point is always to check the statutes. In California, for example, for an action of a board of supervisors to be valid and binding, the action must be approved by a majority of the board. (California Government Code Section 25005.) Typically, this means three of the fi e members of the board must vote affirmatively in favor of the action. A vote of 2-1 would not be sufficient. A vote of 3-0 with two abstentions would be sufficient. In general law cities in California, as another example, resolutions or orders for the payment of money and all ordinances require a recorded vote of the total members of the city councilCity Council. (California Government Code Section 36936.) Cities with charters may prescribe their own vote requirements. Local elected offices are always well-advised to consult with their local agency counsel on how state law may affect the vote count. After consulting state statutes, step number two is to check the rules of the body. If the rules of the body say that you count votes of “those present” then you treat abstentions one way. However, if the rules of the body say that you count the votes of those “present and voting,” then you treat abstentions a different way. And if the rules of the body are silent on the subject, then the general rule of thumb (and default rule) is that you count all votes that are “present and voting.” G.8.a Packet Pg. 128 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 20 Accordingly, under the “present and voting” system, you would NOT count abstention votes on the motion. Members who abstain are counted for purposes of determining quorum (they are “present”), but you treat the abstention votes on the motion as if they did not exist (they are not “voting”). On the other hand, if the rules of the body specifically say that you count votes of those “present” then you DO count abstention votes both in establishing the quorum and on the motion. In this event, the abstention votes act just like “no” votes. How does this work in practice? Here are a few examples. Assume that a five-member city councilCity Council is voting on a motion that requires a simple majority vote to pass, and assume further that the body has no specific rule on counting votes. Accordingly, the default rule kicks in and we count all votes of members that are “present and voting.” If the vote on the motion is 3-2, the motion passes. If the motion is 2-2 with one abstention, the motion fails. Assume a five-member city councilCity Council voting on a motion that requires a two-thirds majority vote to pass, and further assume that the body has no specific rule on counting votes. Again, the default rule applies. If the vote is 3-2, the motion fails for lack of a two-thirds majority. If the vote is 4-1, the motion passes with a clear two-thirds majority. A vote of three “yes,” one “no” and one “abstain” also results in passage of the motion. Once again, the abstention is counted only for the purpose of determining quorum, but on the actual vote on the motion, it is as if the abstention vote never existed — so an effective 3-1 vote is clearly a two- thirds majority vote. Now, change the scenario slightly. Assume the same five-member city councilCity Council voting on a motion that requires a two-thirds majority vote to pass, but now assume that the body DOES have a specific rule requiring a two-thirds vote of members “present.” Under this specific rule, we must count the members present not only for quorum but also for the motion. In this scenario, any abstention has the same force and effect as if it were a “no” vote. Accordingly, if the votes were three “yes,” one “no” and one “abstain,” then the motion fails. The abstention in this case is treated like a “no” vote and effective vote of 3-2 is not enough to pass two-thirds majority muster. Now, exactly how does a member cast an “abstention” vote? Any time a member votes “abstain” or says, “I abstain,” that is an abstention. However, if a member votes “present” that is also treated as an abstention (the member is essentially saying,”Count me for purposes of a quorum, but my vote on the issue is abstain.”) In fact, any manifestation of intention not to vote either “yes” or “no” on the pending motion may be treated by the chair as an abstention. If written ballots are cast, a blank or unreadable ballot is counted as an abstention as well. Can a member vote “absent” or “count me as absent?” Interesting question. The ruling on this is up to the chair. The better approach is for the chair to count this as if the member had left his/her chair and is actually “absent.” That, of course, affects the quorum. However, the chair may also treat this as a vote to abstain, particularly if the person does not actually leave the dais. The Motion to Reconsider There is a special and unique motion that requires a bit of explanation all by itself; the motion to reconsider. A tenet of parliamentary procedure is finality. After vigorous discussion, debate and a vote, there must be some closure to the issue. And so, after a vote is taken, the matter is deemed closed, subject only to reopening if a proper motion to consider is made and passed. A motion to reconsider requires a majority vote to pass like other garden-variety motions, but there are two special rules that apply only to the motion to reconsider. First, is the matter of timing. A motion to reconsider must be made at the meeting where the item was first voted upon. A motion to reconsider made at a later time is untimely. (The body, however, can always vote to suspend the rules and, by a two-thirds majority, allow a motion to reconsider to be made at another time.) Second, a motion to reconsider may be made only by certain members of the body. Accordingly, a motion to reconsider may be made only by a member who voted in the majority on the original motion. If such a member has a change of heart, he or she may make the motion to reconsider (any other member of the body — including a member who voted in the minority on the original motion — may second the motion). If a member who voted in the minority seeks to make the motion to reconsider, it must be ruled out of order. The purpose of this rule is G.8.a Packet Pg. 129 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 21 finality. If a member of minority could make a motion to reconsider, then the item could be brought back to the body again and again, which would defeat the purpose of finality. If the motion to reconsider passes, then the original matter is back before the body, and a new original motion is in order. The matter may be discussed and debated as if it were on the floor for the first time. Courtesy and Decorum The rules of order are meant to create an atmosphere where the members of the body and the members of the public can attend to business efficiently, fairly and with full participation. At the same time, it is up to the chair and the members of the body to maintain common courtesy and decorum. Unless the setting is very informal, it is always best for only one person at a time to have the floor, and it is always best for every speaker to be first recognized by the chair before proceeding to speak. The chair should always ensure that debate and discussion of an agenda item focuses on the item and the policy in question, not the personalities of the members of the body. Debate on policy is healthy, debate on personalities is not. The chair has the right to cut off discussion that is too personal, is too loud, or is too crude. Debate and discussion should be focused, but free and open. In the interest of time, the chair may, however, limit the time allotted to speakers, including members of the body. Can a member of the body interrupt the speaker? The general rule is “no.” There are, however, exceptions. A speaker may be interrupted for the following reasons: Privilege. The proper interruption would be,”point of privilege.” The chair would then ask the interrupter to “state your point.” Appropriate points of privilege relate to anything that would interfere with the normal comfort of the meeting. For example, the room may be too hot or too cold, or a blowing fan might interfere with a person’s ability to hear. Order. The proper interruption would be,”point of order.” Again, the chair would ask the interrupter to “state your point.” Appropriate points of order relate to anything that would not be considered appropriate conduct of the meeting. For example, if the chair moved on to a vote on a motion that permits debate without allowing that discussion or debate. Appeal. If the chair makes a ruling that a member of the body disagrees with, that member may appeal the ruling of the chair. If the motion is seconded, and after debate, if it passes by a simple majority vote, then the ruling of the chair is deemed reversed. Call for orders of the day. This is simply another way of saying, “return to the agenda.” If a member believes that the body has drifted from the agreed-upon agenda, such a call may be made. It does not require a vote, and when the chair discovers that the agenda has not been followed, the chair simply reminds the body to return to the agenda item properly before them. If the chair fails to do so, the chair’s determination may be appealed. Withdraw a motion. During debate and discussion of a motion, the maker of the motion on the floor, at any time, may interrupt a speaker to withdraw his or her motion from the floor. The motion is immediately deemed withdrawn, although the chair may ask the person who seconded the motion if he or she wishes to make the motion, and any other member may make the motion if properly recognized. Special Notes About Public Input The rules outlined above will help make meetings very public- friendly. But in addition, and particularly for the chair, it is wise to remember three special rules that apply to each agenda item: Rule One: Tell the public what the body will be doing. Rule Two: Keep the public informed while the body is doing it. Rule Three: When the body has acted, tell the public what the body did. G.8.a Packet Pg. 130 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) 01247.0001/532785.5 6/21/2019 22 1400 K Street, Sacramento, CA 95814 (916) 658-8200 | Fax (916) 658-8240 www.cacities.org To order additional copies of this publication, call (916) 658-8200. $10 © 2011 League of California Cities. All rights reserved. Printed on recycled paper. G.8.a Packet Pg. 131 Attachment: Attachment A - Proposed Text Changes to City Council Procedures (City Council Policies and Procedures) ATTACHMENT B City of Bell: Manual of Procedural Guidelines for the Conduct of City Council and Constituent Body/Commission Meetings ATTACHMENT B City of Bell: Manual of Procedural Guidelines for the Conduct of City Council and Constituent Body/Commission Meetings G.8.b Packet Pg. 132 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission MANUAL OF PROCEDURAL GUIDELINES FOR THE CONDUCT OF CITY COUNCIL AND CONSTITUENT BODY/COMMISSION MEETINGS CITY OF BELL G.8.b Packet Pg. 133 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission OUTLINE OF PROCEDURAL MANUAL PROVISIONS Manual Applies to Council; Agency; Housing Authority; All Commissions A. Agendas (3.1-3.4; 5.1-5.10; 6.1, 6.3, 6.6) 1. City Manager generally has the authority to set the agenda. (5.1) 2. Any Councilmember may request a matter be put on an agenda. City Manager can bring it to an agenda under pending items and Council can decide whether they want it agendized for discussion. (5.1) 3. Permits consent calendars and defines what is not permitted on consent calendar: ordinances; matters involving split votes or public controversy; excluded consent calendar. (6.3) 4. List order of agenda. (6.1) 5. Permits an agenda item for “Council Agenda – New Business” and where announcements permitted with no discussion. (6.1, 6.6) 6. No action unless listed on agenda. (5.7) 7. Add items if arose subsequent agenda and 2/3 vote or unanimous of those present. (5.9) B. Minutes, Ordinances and Resolutions and Contracts (5.3 - 5.6, 6.5) 1. Minutes are the record of actions and dispositive decisions; revisions factual and not to change intent. (5.10) 2. Defines matter appropriate for ordinance vs. resolution. (5.4, 5.5) 3. Defines vote requirements--ordinances and resolutions generally require three (3) votes. Certain items require supermajority. (5.4, 5.5) 4. Urgency circumstances defined where resolution can be prepared at a meeting. (5.4) 5. Contracts may be put in final form by legal counsel. (5.6) 6. Approval budget does not authorize expenditures. (6.5) C. Boards and Commissions (1.2, 6.4) 1. Defines legislative bodies and advisory bodies subject to the Brown Act. (1.2(a)) 2. Committees established by official action, continuing jurisdiction more than 180 days, majority of officials from City or other bodies, is standing committee subject to Brown Act. 3. Permits creation of ad hoc council subcommittees (less than majority) not subject to the Brown Act. 4. Permits formation of advisory boards and commissions subject to the Brown Act. 5. Provides that appointments are by Mayor with the consent of Council; removed by majority vote of Council. (Charter § 802) 6. Commissions make reports to Council; not permitted to create subcommittees. G.8.b Packet Pg. 134 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -2- 01135/0001\145204.03 D. Study Sessions/Closed Sessions (2.5; 4.1 - 4.4) 1. Study Sessions informal but subject to Brown Act; no action taken. (2.5) 2. Public comments permitted before closed session, report on any action taken. (4.1, 4.4) 3. Those persons not relevant to the closed session matter are excluded. (4.2) 4. A minute book may be kept of the closed session proceedings. (4.3) 5. Revealing any matter from closed session can subject the person to censure. (4.3) E. Public Comments (5.8, 7.1 - 7.4) 1. Public comment period; comment on agenda items. (7.1, 7.5) 2. Fact based informational inquiry; no debate (7.1) 3. Speaker cards provided, but voluntary. (7.3) 4. Time limit for speakers is: 3 minutes. (7.2) F. Hearings (8.1 – 8.4) 1. Before the hearing, Councilmembers limited to factual questions of staff and speakers. Not to engage in debate. (8.4) 2. Presiding Officer to make it clear when hearing is opened or closed. No questions of speakers or public comment after hearing closed. (8.3) 3. Hearing must be fair and impartial with decision based on findings required by law. (8.1, 8.3) 4. No expression of opinion until hearing is closed. (8.4) 5. Avoid extra meeting contact with interested persons. Encourage participation in hearing. (8.4) 6. Presiding Officer can control conduct of hearing--representative speakers, etc. Set any rules at beginning and keep fair to each side. (8.3, 9.1) 7. Be attentive during hearings. (8.1, 8.3) G. Conduct of Members (9.1 – 9.10; 10.3) 1. Mayor presides; determinations can be appealed. (9.1) 2. Mayor speaks officially for City rather than councilmembers. (9.2) 3. Don’t represent position of City or promise City action. (9.2; 9.10) 4. Councilmembers may use letterhead in correspondence but represent their own position rather than City unless authorized by Council. (9.2) 5. Don’t speak in derogatory fashion concerning colleagues, employees, citizens. (10.1(f)) 6. Commissioners do not speak for City. (9.2) 7. Use of City email account to conduct City business; but no collective action under the Brown Act. Also subject to Public Records Act. (9.3) 8. Formal process for censure for wrongful conduct involving noticed hearing before City Council. (10.3) G.8.b Packet Pg. 135 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -3- 01135/0001\145204.03 H. Officials (9.5 – 9.9) 1. City Manager sets agenda, prepares staff report, budget and year-end fiscal report and administers City. (9.5) (Charter 604) 2. City Manager appoints/removes employees and, with consent of Council, Departments heads. 3. City Manager establishes central purchasing and advises Council on financial conditions. 4. City Manager sees to enforcement of all laws. 5. City Manager controls all administrative departments and establishes necessary and proper rules and regulations for general conduct of administration of City. 6. City Attorney prepares all ordinances, resolutions, contracts, deeds, easements and other legal instruments. (9.6(a)) 7. City Attorney client is City not individual council members. City Attorney will advise councilmembers of conflicts but advice not binding and no attorney-client confidentiality. (9.6 (b)) 8. City Attorney can file amicus briefs not conflicting with City interests. (9.6 (d)) 9. City Attorney shall undertake or defend all litigation against the City keeping the Council informed as to the status of such litigation and seeking direction on all major actions. City Attorney may take all necessary and proper action on routine and procedural actions and discovery matters. (9.6(e)) 10. No Conflicts of Interest and no financial interest in contracts. Reporting and Disclosure. No participation where conflict. Highest ethical standards (9.7, 9.8, 9.9) I. Decorum/Procedures (10.1 – 12.3) 1. Presiding officer responsible to maintain decorum and Chief of Police or designee is Sergeant at Arms. (9.1, 10.1, 10.4) 2. Persons engaging in disruptive behavior may be excluded if the disruption continues after being warned. Disruption includes demonstrations, speaking when not recognized, interrupting speakers, violating time limits, being unduly repetitious and similar conduct. It does not include silent gestures, criticizing public officials or similar speech. (10.4) 3. Abstentions discouraged but permitted where appearance of impropriety even if no financial conflict. (11.6) 4. Motions to rescind clarified so that matter can be rescinded if later legislative session. (11.4) 5. Defines process to correct an earlier action in violation of Brown Act. (12.1- 12.3) 6. Includes Table of Motions and Procedural Actions. Exhibit A G.8.b Packet Pg. 136 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission MANUAL OF PROCEDURAL GUIDELINES FOR THE CONDUCT OF CITY COUNCIL AND CONSTITUENT BODY/COMMISSION MEETINGS ARTICLE I – SCOPE 1.1 Application of Rules; Rescission of Prior Resolutions This Manual (the “Manual”) shall establish the procedures for the conduct of all meetings of the City of Bell City Council, Successor Agency to Bell Community Redevelopment Agency, Bell Housing Authority, Bell Public Finance Authority, Planning Commission and other constituent, governing bodies and commissions. This Manual rescinds and supersedes all prior City resolutions setting forth rules of procedure for the conduct of meetings by City Legislative Bodies (defined below). Wherever there is a conflict between this Manual and any prior City resolution, the terms and rules in this Manual shall govern. Resolutions more specifically superseded by this Manual include, without limitation, the following: ________________. 1.2 Definitions The following definitions shall apply to these rules and procedures: a) “Legislative Body” means any quorum of any council, board, agency, commission or standing committee (as defined in Gov’t Code § 54952), or other governing body of the City of Bell that is subject to the Brown Act (Gov’t Code § 54950 et seq.). This includes the Bell City Council, Successor Agency to Bell Community Redevelopment Agency, Bell Housing Authority, Bell Public Finance Authority, Planning Commission, and any standing committee subject to the Brown Act. The term “Legislative Body” does not include Non-Governing Bodies, as defined below. b) “Presiding Officer” means the chairperson of the Legislative Body. For example, this refers to the Mayor when read in the context of the City Council, the Board Chair in the cases of the Successor Agency to Bell Community Redevelopment Agency, Bell Housing Authority, Bell Public Finance Authority, and the Chair of any Commission. c) “Vice Chair” means the vice chairperson to the Presiding Officer. For example, the Vice Chair means the Vice Mayor in the case of the City Council, the Vice Chairperson in the cases of the Successor Agency to Bell Community Redevelopment Agency, Bell Housing Authority, Bell Public Finance Authority, and the Vice Chairperson of any Commission. d) “Clerk/Secretary” means the person responsible for taking and maintaining the record of proceedings for all meetings, preparation of agenda, calendar clerk and custodian of rules, resolutions, ordinances and Legislative Body records. For example, the Clerk/Secretary refers to the City Clerk in the case of the City and the Agency Secretary in the cases of the Successor Agency to Bell Community G.8.b Packet Pg. 137 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -2- 01135/0001\145204.03 Redevelopment Agency, Bell Housing Authority, and Bell Public Finance Authority. e) “General Counsel” means the legal advisor to the Legislative Body, such as the City Attorney in the case of a City Council meeting, or Agency Counsel in the cases of the Successor Agency to Bell Community Redevelopment Agency, Bell Housing Authority, and Bell Public Finance Authority. f) “City Manager” means the Chief Executive Officer (or Executive Director) of the City, Successor Agency to Bell Community Redevelopment Agency, Bell Housing Authority, and Bell Public Finance Authority . The City Manager may serve as the Secretary to the Successor Agency to Bell Community Redevelopment Agency, Bell Housing Authority, and Bell Public Finance Authority, and may designate appropriate staff to serve as the clerk/secretary to any Commission of the City. g) “Non-Governing Bodies” means wholly advisory committees and bodies that are not subject to the provisions of the Brown Act. h) “Sub-Legislative Bodies” means such advisory committees which are subject to the Brown Act but are not “governing” Legislative Bodies. These rules and procedures are enacted pursuant to authority granted by Government Code §§ 36813 and 54954. The purpose of this Manual is to provide that the Legislative Bodies’ procedures will be consistent with the Brown Act and also to establish procedures which will be convenient for the public and contribute to the orderly conduct of any Legislative Bodies’ business. The procedures herein are in addition to, and not in place of, applicable ordinances and statutes and in the event of conflict between this Manual and applicable ordinances or statutes, the ordinances and/or statutes shall govern. In the event that any state statute referenced herein is renumbered, the reference herein shall be deemed to refer to the successor statute dealing with the same subject matter. ARTICLE II – MEETINGS 2.1 Regular Meetings Unless otherwise specified by a resolution or ordinance applicable to a specific Legislative Body, the regular meetings of City Council shall be held on the second and fourth Wednesday of each month at the time designated by the Legislative Body, in the City of Bell Community Center, 6250 Pine Avenue, Bell, California 90201, or at such other locations as the Legislative Body may from time to time designate by resolution, in the order of adjournment, or in the notice or call of any special meeting. In the event a day of meeting is a legal holiday, said meeting shall be held on the next business day. 2.2 Special Meetings The Presiding Officer may, when he or she deems it expedient, or upon the written request of a majority of the Legislative Body, call a special meeting of the Legislative Body for G.8.b Packet Pg. 138 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -3- 01135/0001\145204.03 the purpose of transacting the business designated in the call. The means and method for calling such special meeting shall be as set forth in Bell City Charter Section 507 as it now exists or may hereafter be amended. At such special meeting, no business shall be considered other than as designated in the call. (Gov’t Code § 54956.) Notwithstanding any other provision herein, a special meeting may not be called regarding the salary, salary schedule or other form of compensation for any City officer, official of department head unless the special meeting is being called to discuss the City’s budget. (Gov’t Code §§ 54954.2(a), 54956.) 2.3 Special Emergency Meetings A special emergency meeting may be called by the Presiding Officer or by a majority of the Legislative Body where an emergency exists: (a) A work stoppage, terrorist act or threat, crippling disaster or other activity which severely impairs public health or safety as determined by the majority of the Legislative Body; or (b) Such other circumstance specified by State law as authorizing the conduct of an emergency meeting. Any special emergency meeting shall be called, noticed, and conducted only in accordance with the procedures set forth in State law. 2.4 Attendance A majority of members of the Legislative Body shall constitute a quorum. Less than a majority may adjourn from time to time, and may compel the attendance of absent members. If a member of the City Council is absent from all regular meetings of the City Council for a period of 90 days consecutively from and after the last regular City Council meeting attended by such member, unless by permission of the City Council expressed in its official minutes, or is convicted of a crime involving moral turpitude or a felony, or ceases to be domiciled in and a voter of the City, the office shall immediately become vacant and shall be so declared by the City Council. (Bell City Charter § 501.) 2.5 Study Sessions The Legislative Body may meet informally in conference or “study” sessions regarding concerns of the Legislative Body to interchange information and such meetings shall be subject to the Brown Act, provided that all discussions and conclusions shall be informal. Such meeting shall be called in the same manner as for special meetings or adjourned meetings, as applicable. Each notice shall indicate that an opportunity for public comment shall be provided before any matter shall be determined. When a meeting has been designated a Study Session, the Legislative Body shall not take any action with respect to the matter under study except with prior public notice, appearing on a properly posted agenda, of such intent to take action. ARTICLE III–NOTICE AND AGENDA 3.1 Notice and Agenda for Regular Meetings For every regular Legislative Body meeting, the Clerk/Secretary or his or her designee shall post a notice of the meeting, specifying the time and place at which the meeting will be G.8.b Packet Pg. 139 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -4- 01135/0001\145204.03 held, and an agenda containing a brief description of all the items of business to be discussed at the meeting as set forth in Article V. The notice and agenda may be combined in a single document. The notice and agenda must be posted at least seventy-two (72) hours before the regular meeting in a location freely accessible to public twenty-four (24) hours a day during the seventy- two (72) hour period and where the notice and agenda is not likely to be removed or obscured by other postal material. In addition, the notice and agenda must be posted on the City’s website. Specifically, the notice and agenda shall be posted at the places indicated below, and/or at such other location(s) as the Clerk/Secretary may designate: CITY HALL COUNCIL CHAMBER CITY LIBRARY CITY COMMUNITY CENTER CITY WEBSITE 3.2 Notice and Agenda for Special Meetings For every special meeting, the Clerk/Secretary or his or her designee shall post a written notice specifying the time and place of the special meeting and the business to be transacted must be sent to each member of the Legislative Body (unless the member has filed a written waiver of notice with the Clerk/Secretary) and to each local newspaper of general circulation, and radio or television station that has requested such notice in writing. The notice shall serve as the agenda for the special meeting and shall contain a brief description of all the items of business to be discussed at the meeting as set forth in Article V. The notice for a special meeting shall be conspicuously posted at least twenty-four (24) hours prior to the special meeting in a location that is freely accessible to the public twenty-four (24) hours a day and where the notice are not likely to be removed or obscured by other posted material. In addition, the notice and agenda must be posted on the City’s website. Specifically, the notice shall be posted at the place indicated below, and/or at such other location(s) as the Clerk/Secretary may designate: CITY HALL COUNCIL CHAMBER CITY LIBRARY CITY COMMUNITY CENTER CITY WEBSITE 3.3 Notice and Agenda for Adjourned Meetings The Legislative Body may adjourn any regular, adjourned regular, special, or adjourned special meeting to a time and place specified in the order of adjournment. If a quorum is not present, less than a quorum may so adjourn. If all members are absent from any regular or adjourned regular meeting, the Clerk/Secretary may declare the meeting adjourned to a stated time and place and shall cause a written notice of the adjournment to be delivered personally to each member of the Legislative Body at least twenty-four (24) hours before the adjourned G.8.b Packet Pg. 140 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -5- 01135/0001\145204.03 meeting. A copy of the order or notice of adjournment shall be conspicuously posted on or near the door of the place where the regular, adjourned regular, special, or adjourned special meeting was held, within twenty-four (24) hours after the time of adjournment. When a regular or adjourned regular meeting is adjourned as provided herein, the resulting adjourned regular meeting shall be a regular meeting for all purposes. When an order of adjournment of any meeting fails to state the hour at which the adjourned meeting is to be held, it shall be held at the hour specified for regular meetings. If the subsequent meeting is conducted within five (5) days of the original meeting, matters properly placed on the agenda for the original meeting may be considered at the subsequent meeting. If the subsequent meeting is more than five (5) days from the original meeting, a new agenda must be prepared and posted pursuant to Government Code Section 54954.2. 3.4 Affidavit of Posting Immediately following the posting of the notice and agenda, the Clerk/Secretary or his or her designee shall complete an Affidavit of Posting, in a form to be developed by the Clerk/Secretary. The Affidavit of Posting shall indicate the time of the posting, the location(s) of the posting, and shall be signed under penalty of perjury. The Clerk/Secretary shall retain all such affidavits, together with a copy of each notice and agenda so posted. The affidavit, notice, and agenda shall be retained at least two (2) years subsequent to the date of posting, and pursuant to Government Code § 34090, shall not be destroyed by the Clerk/Secretary thereafter except in accordance with the City’s record retention policies. ARTICLE IV– CLOSED SESSIONS 4.1 Generally The Legislative Body may hold closed sessions during a regular or special meeting, or at any time otherwise authorized by law, to consider or hear any matter which it is authorized by State law to hear or consider in closed session. Public comment shall be permitted on closed session matters prior to the closed session. If a closed session is included on the agenda, the description of the item shall meet the requirements of and shall identify the statutory basis for the closed session. During closed session, the Legislative Body shall exclude all persons which it is authorized by State law to exclude from a closed session. No minutes of the proceedings of the Legislative Body during a closed session are required. There shall be no closed session during any special emergency meeting unless approved by a 2/3 vote of the members present (or unanimous if less than 2/3 present) pursuant to Govt. Code§ 54956.5. Closed session may not be held regarding a matter not listed on a properly posted agenda for closed session except upon the Legislative Body first taking action to place the item on the agenda as a closed session item as permitted by law. 4.2 Persons Authorized Persons present in the closed session shall be only those persons necessary to the discussion of the matter under consideration. All other persons shall be excused. The Clerk/Secretary shall attend each closed session of the Legislative Body and keep and enter into a minute book a record of any reportable decisions made at the meeting, unless attendance is excused. G.8.b Packet Pg. 141 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -6- 01135/0001\145204.03 4.3 Confidentiality The minute book for any closed session is not a public record and shall be kept confidential and shall be available only to members of the Legislative Body or as otherwise provided by law. (Govt. Code § 54957.2(a).) No person attending a closed session shall publicly discuss or otherwise reveal the proceedings in the closed session unless such publication has been approved by the vote of the Legislative Body taken during the closed session or as otherwise required by law. Violation of this rule shall subject the violator to censure by the Legislative Body as provided in Section 10.5 herein. 4.4 Public Reports Before recessing into closed session, the Presiding Officer or General Counsel shall announce that the Legislative Body is recessing into closed session and shall name each closed session topic that will be discussed in closed session in at least as much detail as shown on the agenda. Upon leaving closed session, the Presiding Officer or General Counsel shall report publicly any reportable actions taken on a closed session matter and, if any vote was taken, shall announce that the matter was put to a vote, the results of the vote, and how each Legislative Body member voted. ARTICLE V - AGENDA CONTENTS 5.1 Preparation of Agendas Barring insurmountable difficulties, the agenda shall ordinarily be delivered to the members of the Legislative Body each Friday preceding the meeting to which it pertains. The agenda shall also be available to the general public at the time it is delivered to the members of the Legislative Body, or in any case as required by the Brown Act. Any Legislative Body member desiring to present a subject for the Legislative Body’s consideration shall advise the City Manager’s office and the City Clerk of that fact not later than 5:00 pm one week before the meeting at which the member wishes the subject to be considered. The matter shall then be listed on the next agenda for discussion of whether it should be a future agenda item. The City Manager shall advise the Legislative Body member of constraints affecting staff’s ability to produce an agenda report, and when the matter should be scheduled. Notwithstanding the foregoing, the City Manager generally has responsibility for setting the agenda for the Legislative Body (except for any Commission where the responsibility may be assigned to the City Manager’s designee), and may place matters on the agenda in accordance with the Manager’s evaluation of administrative priorities and resource capacities of City. 5.2 Description of Matters All items of business to be transacted or discussed at a meeting of the Legislative Body, shall be briefly described on the agenda. The description may, but need not, set out the specific action or alternatives which will be considered by the Legislative Body, but should contain G.8.b Packet Pg. 142 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -7- 01135/0001\145204.03 sufficient detail so that a person otherwise unaware could determine the general nature or subject matter of the item by reading the agenda. The description of closed session matters shall meet the requirements of Government Code §§ 54954.2 and, where applicable, § 54954.5. Matters may be designated as “pending” and listed for the sole purpose of determining if they will be on a future agenda. 5.3 Action Items (a) Matters may formally be adopted by an ordinance, a resolution, minute order, or other motion (thereafter recorded by minute entry). Technically, all three are equally as legally effective and binding but vary in the formality of respective memorialization. While most actions will be presented to the Legislative Body in a written form prior to, or at, the meeting, the Legislative Body may amend any proposed action as written by carried motion of the Legislative Body at the time of its presentation for adoption. If an action as written is so amended by the Legislative Body, it shall be revised to reflect the Body’s amendments for later execution by the Presiding Officer. (b) Besides ordinances and resolutions, action can be taken by motion and recorded as a minute order. A “minute order” denotes a Legislative Body action which is recorded simply by an item entered in the minutes of the meeting at which it was accomplished, and no separate document is made to memorialize it. (c) Except for emergency resolutions or ordinances, all resolutions, and ordinances as applicable, shall be presented to the Legislative Body in printed or typewritten form. This requirement does not prevent the Legislative Body from adopting a resolution, or ordinance as applicable, which has been amended by motion of the Legislative Body at the time of its presentation for adoption. (d) As a general rule, a recorded majority of the quorum for a Legislative Body may take an action. However, for the City Council, resolutions, orders for the payment of money, and all ordinances (except urgency ordinances) require a recorded majority vote of the total membership of the City C ouncil. (Govt. C §36936.) Also, other actions, such as the passage of an urgency ordinance or adoption of a resolution of necessity to condemn property, require a super-majority vote. (Govt. Code §§ 36937, 65858; Code Civ. Proc. § 1245.240.) (e) Under the Political Reform Act of 1974, a member with a financial conflict of interest regarding a matter before the member’s board must leave the room while that matter is being discussed, heard, or acted on, so that member cannot be counted towards the quorum for that matter. (Govt. Code § 87105; 2 Cal. Code Regs. § 18702.5.) 5.4 Resolutions (a) A “resolution” is a formal action with findings taken by the Legislative Body, generally prepared in writing, designated by sequential number, and reference to which shall be inscribed in the minutes and an approved copy of each resolution filed in the official book of resolutions of the Legislative Body. A resolution is less formal and does not demand the legal processing required of an ordinance. G.8.b Packet Pg. 143 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -8- 01135/0001\145204.03 (b) Resolutions are used when specifically required by law, when needed as a separate evidentiary document to demonstrate findings or to be transmitted to another governmental agency, or where the frequency of future reference back to its contents warrants a separate document (with the additional preambles/ explanatory material it often recites) to facilitate such future reference and research. (c) A resolution is generally introduced and adopted at the same meeting. Where a resolution has been prepared in advance, the procedure shall be: motion, second, discussion, vote pursuant to methods prescribed in Article XI, and result declared. It shall not be necessary to read a resolution in full or by title except to identify it. (d) Where a resolution cannot reasonably be prepared in advance of a meeting, the Legislative Body may instruct the City Manager or General Counsel to prepare a resolution for presentation at the next Legislative Body meeting. Where urgent, a resolution may be presented verbally in motion form together with instructions for written preparation for later execution. After the resolution has been verbally stated, the voting procedure in Article XI, shall be followed. Any decision within the city’s police power may be evidenced by resolution unless there is a statutory or other requirement providing otherwise. 5.5 Ordinances (City Council Only) (a) The City Council is the only Legislative Body empowered to legislate the Bell Municipal Code by adoption of ordinances. Ordinances are the laws of the city. (b) Ordinances, other than urgency ordinances, require at least two readings at different meetings held at least five days apart with the first reading considered to be introduction and the second adoption. With few exceptions, ordinances take effects on the 31st day after adoption. (c) Ordinances are required to be read in their entirety at the time of introduction or at the time of passage, unless a motion waiving further reading is adopted by a majority vote of the Councilmembers present and voting. The waiver of further reading may be accomplished by one vote for all ordinances presented on the agenda of the present meeting. Government Code Section 36934. (d) The Clerk/Secretary shall prepare copies of all proposed ordinances for distribution to all members of the City Council at the meeting at which the ordinance is introduced, or at such earlier time as is expedient. Ordinances shall be numbered and kept by the clerk/secretary with the same formality as resolutions as described above in Section 5.4. (e) An urgency ordinance is an ordinance adopted for the immediate preservation of the public peace, health and safety, containing a declaration of facts constituting the urgency. An urgency ordinance takes effect immediately and requires four-fifths vote of the City Council for passage pursuant to Government Code § 36937. (f) Ordinances may only be passed at a regular meeting or at an adjourned regular meeting, except for urgency ordinances. Ordinances may not be passed at a special meeting. (Govt. Code§ 36934; Bell City Charter § 511) G.8.b Packet Pg. 144 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -9- 01135/0001\145204.03 5.6 Contracts and Agreements When any contract or agreement is to be considered by the Legislative Body, the complete contract and agreement, if complete in form for execution, shall be made a part of the agenda package presented to the Legislative Body and shall be made available for viewing by the public within the time frames required under the Brown Act and/or the California Public Records Act (Govt. Code §§ 6250 through 6276.48). The Legislative Body may choose to leave the final form of the contract to the discretion of General Counsel if the Legislative Body has determined the general conditions of the contract. 5.7 Limitation of Actions by Agenda No action or discussion shall be taken by the Legislative Body, on any item not appearing on a posted agenda, subject only to the exceptions listed in Section 5.9 below. “Action taken” as used herein shall mean a collective decision made by a majority of the Legislative Body present, a collective commitment or promise by a majority of the Legislative Body to make a positive or a negative decision, or an actual vote by a majority of the Legislative Body present upon a motion, proposal, resolution, order, or ordinance. 5.8 Public Comment Period Pursuant to Government Code § 54954.3, every agenda posted for any meeting shall contain an item entitled “Public Comment” in order to provide for an opportunity for the public to address the Legislative Body on items of interest to the public within the Legislative Body’s subject matter jurisdiction. The public comment period should be conducted in accordance with Article VII. 5.9 Exceptions to Agenda Requirement for Action Taken The Legislative Body may take action at a meeting on an item not appearing on the agenda for that meeting only under one of the following circumstances: (a) Upon a majority determination that an “emergency situation” that is either (i) a work stoppage, crippling activity, or other activity that severely impairs public health, safety, or both, or (ii) a dire crippling disaster, mass destruction, terrorist act, or threatened terrorist activity that poses peril so immediate and significant that requiring a Legislative Body to provide one-hour notice before holding an emergency meeting may endanger the public health, safety, or both. All discussion of such emergencies must be in open session. (b) Upon a determination by a two-thirds (2/3) vote of the Legislative Body, or if less than two-thirds of the Legislative Body are present by a unanimous vote of those members present, that the need to take action arose subsequent to the agenda posting. For the purposes of this subsection, the term “need to take action” shall mean those circumstances whose occurrence creates a situation which is materially different from that which existed at the time the agenda was posted, and which requires the immediate attention of the Legislative Body. The mere failure of any person to notify the Legislative Body or staff of a pre-existing situation requiring Legislative Body attention until after the time for the posting of the agenda shall not be deemed to constitute a “need to take action” hereunder. If the Legislative Body makes a G.8.b Packet Pg. 145 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -10- 01135/0001\145204.03 determination pursuant to this subsection, the minutes of the meeting at which the determination is made shall reflect what circumstances gave rise to the “need to take action” and why the item could not be placed on the agenda. 5.10 Minutes and Recordings (a) An account of all proceedings of Legislative Body in open meetings shall be kept by the Clerk/Secretary. The Clerk/Secretary shall prepare a record of all actions and dispositive decisions taken at meetings proceedings (“Action Minutes” or “Mintues”) for approval by the Legislative Body which when adopted by the Legislative Body shall be the official Minutes of the meeting. Amendment of the Minutes may be made only as to factual accuracy and not as to a change of intent. The Minutes of the meeting will not be verbatim, but shall list the speakers name, the item and actions taken on the item. Only the best and most complete available recording of the meeting shall constitute the official record of the Legislative Body, but the Minutes shall constitute the official record of the Legislative Body meeting where a verbatim record of the meeting is not available. (b) Any recording of a meeting made by or at the direction of the Legislative Body is a public record that must be retained and made available to the public for at least 30 days. The Legislative Body must provide to the public, without charge, equipment to review the record. ARTICLE VI – ORDER OF BUSINESS 6.1 Order of Business The order of business of each meeting shall be as contained in the agenda prepared by the Clerk/Secretary unless the majority of the Legislative Body members consent to take items out of order. The order of business at meetings of the Legislative Body may be as follows, in accordance with the procedures specified below: (a) Call to Order. (b) Roll Call. (c) Public Comment period on Closed Session, if applicable (d) Announcement of Closed Session Items, if applicable. (e) Recess to Closed Session. (f) Reconvene Regular Meeting. (g) Roll Call (h) Pledge of Allegiance. (i) Closed Session Report, if applicable. (j) Presentations. (k) Public Comment period. (l) Mayor and Council Communications. (m) City Manager’s Report (n) Public Hearings, if applicable. (o) Business Calendar. (p) Consent Calendar. (See Section 6.3 below) G.8.b Packet Pg. 146 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -11- 01135/0001\145204.03 (q) Adjournment. 6.2 Call to Order The meeting of the Legislative Body shall be called to order by the Presiding Officer, or the Vice-Chair in the Presiding Officer’s absence. In the absence of both the Presiding Officer and Vice Chair, the meeting shall be called to order by the Clerk/Secretary and the three Legislative Body members present shall elect by majority vote a Presiding Officer for that meeting. 6.3 Consent Items Matters of a routine or generally uncontested nature and non-controversial, shall be placed on the agenda as Consent Items and may be approved by the Legislative Body in a single motion by adoption of the Consent Calendar. The approval of the Consent Calendar shall signify the approval of each matter or recommendation included therein. All matters on the Consent Calendar shall be the subject to public comment procedures in Article VII. Upon the request of any member of the Legislative Body or upon the request of a member of the public made through the Presiding Officer, a matter may be removed from the Consent Calendar for separate discussion and/or action. Any such item shall be considered as part of the Excluded Consent Calendar. Each matter proposed for consideration as part of the Consent Items, including any recommended action, shall be described on the notice and agenda posted for the meeting. The following matters are not appropriate for the Consent Calendar: (a) Ordinances shall not be placed on the Consent Calendar for approval unless it is the second reading of the ordinance and the reading of the ordinance has been waived as required by law. (b) Any matter where the City Manager believes (i) it unlikely that there would be unanimous approval by the Legislative Body, or (ii) there is likely to be public comment on the matter, or (iii) a public presentation of the matter would be beneficial to the community. 6.4 City Representatives and Advisory Bodies (City Council Only) (a) From time to time the Council may be required to assign a representative of the City to non-City boards, commissions or organizations (e.g., boards or commissions of another agency or joint powers authority). Except as otherwise required by law or by the policies of the non-City organization, the Mayor shall make all such appointments of City representatives on non-City organizations after consultation with the City Council. (b) The City C ouncil shall have the power to establish advisory committees, commissions, other Legislative Bodies and Non-Governing Bodies. Any committee which is (i) established by ordinance, resolution or other formal action required by law, or (ii) has a fixed regular meeting schedule, or (iii) has continuing subject matter jurisdiction over a non-temporary issue, or (iv) which continues to conduct business in excess of 180 days, or (v) has a majority membership of officials from other Legislative Bodies, shall be subject to the provisions of the Brown Act. G.8.b Packet Pg. 147 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -12- 01135/0001\145204.03 (c) Advisory bodies and committees may take the following form: (1) The Council may, as the need arises, authorize the appointment of “ad hoc” Council committees composed of two members. Except where otherwise specifically provided by law, the Presiding Officer shall appoint the members of the Council committees, subject to the approval of the Council. Any committee so created shall cease to exist upon the accomplishment of the special purpose for which it was created or when abolished by a majority vote of the Council. (2) The Council may, subject to the Brown Act, create other committees, boards, and commissions, whether Legislative Bodies or Non-Governing Bodies, to assist in the conduct and operation of the City government with such jurisdiction and duties as the Council may specify. Except where otherwise specifically provided by law, the Mayor shall make appointments of members to such committees, boards or commissions subject to the approval of the Council. The procedure of filling vacancies and provision of notice thereof shall be subject to the provisions of the Maddy Act. (Govt. Code §§ 54970-54974). Absent any other provision to the contrary, members of committees, boards and commissions may be removed by the Council without cause by a majority vote of the whole Council body. Any member of the City Council may place the question of such removal on the agenda. (Bell City Charter § 802.)Any committees, boards, or commissions so created may be abolished by a majority vote of the whole Council body by repeal of the enacting ordinance or resolution. (c) Sub-Legislative Bodies, including Non-Governing Bodies, shall be responsible for reporting the Body’s activities to the City Council. The members of a Sub- Legislative Body or Non-Governing Body shall operate within the jurisdiction established by the Council and shall not have authority to make subcommittees unless specifically granted such authority by action of the full City Council. Staff members may be assigned to assist any Council-created committee by the by the City Manager; staff members so assigned shall not be members of the committee unless specifically appointed as such by action of the full Council. 6.5 Budgets The City Council shall have the power to approve the City budget, and each Legislative Body shall have the power to approve the budget of funds specifically apportioned to control of that Legislative Body (e.g., the Successor Agency Board shall approve the budget of the Successor Agency to the Bell Community Redevelopment Agency and the Housing Authority Board shall approve the budget of the Bell Housing Authority). Approval of the budget constitutes approval of a proposed plan of expenditures and revenues. With respect to each given expenditure the applicable procedure and laws must be followed. Further adoption of the budget does not constitute authorization for any specific employment class or position. 6.6 Items from Members (a) There is a specific item on the agenda for receiving general comments, announcements, and/or suggestions from members of the Legislative Body. This can be used to inform the public concerning upcoming events, report on members’ attendance at conferences and seminars, for requests by members that staff review specific matters or similar matters. G.8.b Packet Pg. 148 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -13- 01135/0001\145204.03 These matters may not be discussed, opined upon or deliberated, and if they do not concern a matter on the agenda, shall be handled by the Presiding Officer according to the same procedures set out for Public Comment in Section 7.3. No action may be taken on such matters without being placed on a subsequent agenda. (b) There is an agenda item referred to as New Business. Matters are listed under this item pursuant to Section 5.1 where a member has asked that the matter be scheduled for discussion of whether a future staff report should be prepared. The listing of the matter allows a discussion of whether a staff report should be prepared, or it may be held on the pending agenda to keep track of when it will be assigned to a future agenda. (c) There is an agenda item referred to as City Manager Reports. This may be used by the City Manager similarly to the item for members of the Legislative Body in Subsection (a) above to make announcements without separately listing the matter on the agenda, and subject to the same restriction that there may be no discussion or action on such matter. ARTICLE VII– PUBLIC COMMENT 7.1 Public Comment At the beginning of any Legislative Body meeting the public shall be afforded the right to comment on any and all issues, including items on the agenda, within the subject matter jurisdiction of the Legislative Body. Public comment shall be taken at the beginning of the meeting under a “Public Comment” heading. With regard to matters not on the agenda, the Legislative Body may ask questions of persons who raise new matters during the Public Comment period or otherwise, and the Presiding Officer should handle such matters as provided in Section 7.3, below. However, all Legislative Body questions must be limited to facts-only informational inquiries, and the Legislative Body may not discuss the merits, express any opinions or ask questions that convey opinions or thought processes with respect to any non- agendized issue. 7.2 Time Limitations The Presiding Officer has the full prerogative to maintain meeting order and decorum as provided in Section 9.1 and Article X generally. Time limits for public comments shall be three minutes per speaker. The Legislative Body may modify the time limits to accommodate a lengthy agenda or allow additional time for discussion on a complicated matter. 7.3 Speaker Cards and Procedures (a) Any member of the public desiring to address the Legislative Body must stand at the podium and wait to be recognized by the Presiding Officer. Upon being recognized, each speaker must identify the subject or subjects (whether agenized or not) upon which she or he intends to speak, and state his or her name, but shall not be required to give any information as a condition of speaking. All remarks and questions shall be addressed to the Presiding Officer and not to any individual Legislative Body member, the audience, staff member or other person. G.8.b Packet Pg. 149 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -14- 01135/0001\145204.03 (b) At the close of the speaker’s comments, or the close of the period for public comment the Presiding Officer may ask staff to respond to the speaker’s comments. Thereafter, the Presiding Officer may refer the matter to staff for investigation and/or response; or request that the matter be placed on an agenda for a subsequent meeting for action by the Legislative Body. 7.4 Reserved 7.5 Additional Procedures for Public Comment on Agenda Items (a) Members of the public shall have the opportunity to address the Legislative Body on each and every item listed on the agenda. Public comments on an agenda item may be heard during Public Comment period at the start of the meeting. (b) The purpose of the public comment period is to receive input from the public, not to create a debate between the Members and the public. Members should generally refrain from debating members of the public during the period for public comment, but if Members desire to clarify comments by members of the public, they may ask factual questions, and if necessary, should do so during the public comment period. (c) The Presiding Officer should clearly open and close the public comment period. After the close of the public comment period or after a motion has been made, no member of the public shall address the Legislative Body. ARTICLE VIII– NOTICED PUBLIC HEARINGS 8.1 Public Hearings; Notice; Fairness (a) Matters noticed to be heard by the Legislative Body shall commence at the time specified in the notice of hearing, or as soon thereafter as is reasonably possible, and shall continue until the same has been completed or until other disposition of the matter has been made. (b) Legislative Body members shall not overtly or implicitly promise a particular action by City staff or by any Legislative Body. Where a Legislative Body member is contacted about an issue that will be presented to any Legislative Body of the City, it is appropriate to give a brief overview of City policy, to refer to City staff for further information, or to suggest that the concern be brought to the whole Council at the hearing or Council meeting, as appropriate. (c) All public hearing notices shall be issued and published in compliance with any statutory notice requirements applicable to the particular hearing at issue and such notice shall inform interested persons of the Statute of Limitations to challenge the validity of any action taken by the Legislative Body on such matter. (d) In all matters before a Legislative Body, whether public hearing or otherwise, the Body must judge the matter fairly and without personal bias. Although every G.8.b Packet Pg. 150 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -15- 01135/0001\145204.03 Legislative Body member has a right to their own personal opinions, Legislative Body members should by their demeanor show an ability to listen to a variety of viewpoints and demonstrate a reasonable willingness to consider all sides of an issue before them. For quasi adjudicative matters involving public hearings, the members of the Legislative Body shall not prejudice the matter prior to the public hearing, shall be fair and impartial, and shall decide the matter based upon the evidence and the statutorily required findings. For such matters, Legislative Body members should avoid expressing an opinion or divulging their thought process until after the public hearing has been closed and brought back to Council for discussion. 8.2 Continuance of Hearings (a) Any hearing being held or noticed or ordered to be held by the Legislative Body may, by order or, notice of continuance, be continued or re-continued to any subsequent meeting in the manner provided for adjourned meetings. (b) When it is the decision of the Legislative Body to continue an item which appears on the agenda, prior to hearing any report, testimony or taking evidence on the item, the Legislative Body may make such intent known at the beginning of the meeting. At that time the public shall be offered the opportunity to speak regarding the intent to continue the item. At the time regularly scheduled for the hearing of the item, the Legislative Body shall then take action to continue the item after again informing the public of the intent to continue the matter. No testimony or evidence shall be taken at that time unless the speaker will not be available at the continued hearing date. (c) When the Legislative Body has continued the public hearing on an item after its commencement, persons testifying at the first public hearing shall be permitted to again address the Legislative Body on the item at the renewed hearing subject to the finding of the Presiding Officer that the testimony is redundant. Upon such finding the time allotted for testimony by the individual may be summarily reduced. (d) Continuances of a public hearing to a date certain need not be re-noticed unless (i) the hearing has not been continued to a date certain, or (ii) has been continued three or more times and the Presiding Officer believes confusion may be created as to the time of the hearing. 8.3 Conduct of Hearings (a) When a matter for public hearing comes before the Legislative Body, the Presiding Officer shall request that staff present the staff report and any other relevant evidence, but the presentation of the staff report prior to the formal opening of the public hearing shall not prevent its consideration as evidence. Any such evidence shall be made a part of the record of the public hearing. The Presiding Officer shall permit members of the Legislative Body to ask questions of staff, but should prevent expressions of opinion by members of the Legislative Body before the conduct of the hearing. (b) The Presiding Officer shall thereafter open the public hearing and inquire if there are any persons present who desire to address the Legislative Body on the matter. Any person desiring to speak or present evidence upon being recognized, may speak or present G.8.b Packet Pg. 151 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -16- 01135/0001\145204.03 evidence relevant to the matter being heard. Generally the Presiding Officer should allow speakers in favor of the matter, then those opposed, and then rebuttal. Any testimony shall be truthful. (c) Members of the Legislative Body who wish to ask questions of the speakers, during the public hearing portion, may do so but should be mindful that the purpose of the public hearing is to obtain testimony and evidence from the speakers, and not to debate the merits of the matter with speakers. Members should avoid debate and expressions of personal opinion until after the close of the public hearing. Unlike public comment periods, generally there should be no response to speaker comments until after the close of the hearing. The Presiding Officer shall conduct the hearing in such a manner as to afford due process to all affected persons. (d) All persons interested in the matter being heard by the Legislative Body shall be entitled to submit written evidence or remarks, as well as other graphic evidence. All such evidence presented shall be retained by the Clerk/Secretary as part of the record. Each speaker may only speak once during the public hearing unless the Legislative Body requests additional clarification, answers or rebuttal later in the process. (e) Upon closing of the public hearing by the Presiding Officer, no additional public testimony shall be solicited or received by the Legislative Body without reopening the public hearing. If, however, the Legislative Body receives relevant new evidence after the close of the public hearing and such new evidence may impact the Legislative Body motion or vote, the Legislative Body may re-open the public hearing to obtain public comments upon such new evidence. (f) The Presiding Officer has the prerogative to establish special rules, such as to require group spokesmen, to limit the number of speakers to limit the total time for testimony to allow speakers to give time to others, or otherwise control the hearing, provided that (i) speakers are treated fairly and uniformly, and that (ii) any such special rules are announced in advance of their application. The Presiding Officer always retains the prerogative to cut-off speakers who are unduly repetitious, and to permit the extension of time to speakers. 8.4 Extra-Meeting Contacts on Matters Set for Public Hearing (a) Legislative Body members should minimize their contacts with developers, applicants, or other persons who will be the subject of a quasi-adjudicative public hearing matter to be heard before the Legislative Body. Legislative Body members should avoid extra-meeting contacts with persons who will be the subject of a public hearing before the Body or with advocacy groups or special interests. (b) If a Legislative Body member is contacted directly by such person outside the meeting setting, the member shall refrain from expressing any viewpoints or thought processes to the person until after the public hearing. The Legislative Body member may explain that they are unable to express any viewpoint on the matter until all evidence has been heard in the course of a public hearing and should encourage any such person to present their position in writing or orally at the public hearing. G.8.b Packet Pg. 152 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -17- 01135/0001\145204.03 (c) At the commencement of the public hearing, the Legislative Body member must disclose publicly any extra-meeting contacts or discussions had which may be relevant to the decision. (d) The limitations set forth in this Section shall not be read as preventing a Legislative Body member from inspecting a site that will be relevant to a public hearing, although such sight inspection should be disclosed on the record at the beginning of the public hearing. ARTICLE IX - OFFICERS 9.1 Presiding Officer (a) The meeting shall be presided over and chaired by the Presiding Officer, or, in the Presiding Officer’s absence, the Vice Chair. The Presiding Officer shall have the authority to rule any speaker out of order, including speakers during the public comment period if the subject raised is not within the subject matter jurisdiction of the Legislative Body, or during a public hearing if the speaker is not presenting testimony or evidence relevant to the matter which is the subject of the public hearing. The Presiding Officer shall have the responsibility for the conduct of meetings in an orderly manner and to prevent the obstruction of business, and in carrying out this responsibility shall have the authority to give the floor to any member of the Legislative Body or public by recognizing them, to prevent the misuse of legitimate forms of motions or privileges, to take matters up out of order, to caution speakers as to disruptive behavior, and to order any persons willfully interrupting the meeting to be removed from the room, including as provided in Article X. (b) The Vice Chair shall generally take the place of the Presiding Officer in the absence of the Presiding Officer. The Legislative Body shall designate one of its members as Vice Chair. In the absence of the Vice Chair, the Legislative Body may call any other member to take his or her place as Presiding Officer, such substitution not to continue beyond adjournment. (c) Any determination made by the Presiding Officer may be appealed by the making of a Motion to Appeal the Ruling by any other member of the Legislative Body. The Presiding Officer’s determination will stand unless a majority of the Legislative Body members vote in favor of the Motion to Appeal the Ruling, in which case the ruling of the Presiding Officer will be overridden. The Motion to Appeal the Ruling is governed by the Chart of Motions attached as Exhibit A. 9.2 Representation of Legislative Body (a) The Mayor is the designated representative of the City and the City Council for purposes of presenting and expressing the official City position on an issue. If individual members of the Council or other Legislative Bodies are contacted by the media for a statement of official City position, the member should refer such inquiries to the Mayor. Otherwise public or media statements by a Legislative Body member should be clearly characterized as comments upon a personal viewpoint. G.8.b Packet Pg. 153 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -18- 01135/0001\145204.03 (b) Members of the City Council may use official City letterhead to correspond with other public officials and with consultants but any such correspondence shall state that the views expressed therein are personal and not the position of the City unless the City Council has officially adopted such position. No commission or Sub-Legislative Body may take a position officially representing the City unless authorized to do so by the City Council. 9.3 Email Policy (a) Members of the Legislative Body are provided with City email accounts which may be utilized for the conduct of City business, including communications with constituents. Members should be aware that all such communications may be subject to the Public Records Act. (Govt. Code § 6200.) . (b) Members of the Legislative Body are subject to the Brown Act in the use of email. Email communications may not be used to develop a collective consensus or decision on any matter. Email communications to the entire Body should be avoided but may be permitted to provide factual information, for example such as arranging an event, where no discussion or exchange of opinions on a matter within the jurisdiction of the Legislative Body is initiated or occurs. 9.4 Clerk/Secretary The Clerk/Secretary or his/her deputy shall attend all meetings of the Legislative Body unless excused, and shall keep the official minutes and perform such other duties as may be requested by the Legislative Body. (Bell City Charter § 704.) 9.5 City Manager The City M anager, or designee, shall attend all meetings of the Legislative Body unless excused. The City Manager may make recommendations to the Legislative Body and shall have the right to take part in all discussions of the Legislative Body, but shall have no vote. The City Manager, shall provide the Legislative Body with a staff report providing sufficient information to be the basis for any action by the Legislative Body at its meeting. Any officer or employee of the City, when directed by the City Manager, shall attend any meeting of the Legislative Body and may present information relating to matters before the Legislative Body. (Bell City Charter §§ 604 and 605.) 9.6 General Counsel (a) The General Counsel, or deputy, shall attend all meetings of the City Council unless excused and shall upon request of any member give an opinion, either written or oral, on questions of law. The General Counsel, or deputy, shall attend all meetings of such other Legislative Bodies as directed by the City Council or City Manager. The General Counsel serves as advisory parliamentarian for the City and is available to answer questions or interpret situations according to parliamentary procedures. Final rulings on parliamentary procedure are made by the Presiding Officer, subject to the appeal to the Legislative Body pursuant to Section 10.1 (c), below. All ordinances and resolutions and all contracts, deeds, easements or other legal instruments shall be approved as to form and legality by General Counsel. In an y case of G.8.b Packet Pg. 154 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -19- 01135/0001\145204.03 ambiguity or uncertainty in the interpretation or application of this Manual to any procedure, the Presiding Officer may direct such question to the General Counsel for a ruling. (Bell City Charter § 703.) (b) Any member of the Legislative Body may request from the General Counsel a legal opinion regarding any matter related to the interests of the City. Where a legal opinion involves substantial cost, the request for the opinion must first be approved by the City Manager or by a majority of the Legislative Body. The General Counsel is the legal representative of the City acting through its Legislative Body. There is a continuing legal question as to whether the General Counsel may have an attorney-client relationship with any individual member of the Legislative Body or the City staff. As a consequence any discussion with the General Counsel which leads to the conclusion that the interests of the City are at risk must be revealed to all relevant members of the Legislative Body and the City staff by the General Counsel. The General Counsel shall not have an attorney-client relationship with individual Councilmembers. The General Counsel is required to maintain the confidentiality of such communications from persons outside the City to the extent required or permitted by law and the code of ethics. (c) The General Counsel has no statutory duty or authority under the Political Reform Act to provide Political Reform Act advice to any Legislative Body member but should provide advice to members when requested. However, a Legislative Body member may not rely on advice from the General Counsel to provide him or her with immunity from FPPC enforcement or prosecution. Such immunity may be obtained only through a written advice letter obtained from the FPPC, on the question in issue, by the Legislative Body member. A Legislative Body member enjoys no privilege of attorney-client confidentiality in reviewing these matters with General Counsel. Any advice given to an individual member of a Legislative Body cannot be withheld from the rest of the City or Legislative Body. If, after receipt of an opinion of the General Counsel, the Legislative Body member wishes to participate in the decision making process with immunity from prosecution or enforcement, the General Counsel shall assist the Legislative Body member in making direct contact with the FPPC for informal or formal advice upon which the Legislative Body member can rely. (d) [This Section Applicable to City Council Only]. It often happens that other jurisdictions or the League of California Cities or other regional or statewide association will ask the City to participate in the filing of a letter or brief before a court in a matter deemed to be of concern to all or a great many cities. These “friend of the court” or “amicus” briefs have the effect of informing the court how widespread will be its opinion and how that opinion will affect cities. Such participation is normally without direct cost to the City. In considering whether to direct General Counsel to file an amicus brief, the City Council shall consider whether such brief would represent or propose a position that conflicts with, or causes strife amongst, other City-related interests such as, without limitation, the interests of employee organizations, law enforcement or public safety. (i) Upon receipt of the request, the General Counsel shall make the request available through the City Manager to the Council. Upon a determination by any Council Member that there is an interest in participating in the action in the manner proposed, the Council Member shall inform the City Manager or General Counsel who shall place the G.8.b Packet Pg. 155 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -20- 01135/0001\145204.03 matter as an item for discussion in closed session on the agenda of the next Legislative Body meeting. General Counsel may otherwise place an amicus request on the agenda on his or her initiative. (ii) In lieu of the foregoing process, where there is urgency to the matter, General Counsel is authorized to undertake the filing of the letter or brief where (i) in the opinion of General Counsel the legal matter significantly affects the interests of the City, (ii) the General Counsel has consulted with and received the approval of the City Manager, (iii) the cost to the City will not exceed $5000, and (iv) the General Counsel makes a written report of the action to the Legislative Body. (iii) Approval given to General Counsel to defend, or seek or refrain from seeking, appellate review or relief, or to enter as an amicus curiae in any form of litigation as the result of a closed session consultation shall be reported in open session at the public meeting during which the closed session is held. The report shall identify, if known, the adverse party or parties and the substance of the litigation. In the case of approval given to initiate or intervene in an action, the announcement need not identify the action, the defendants, or other particulars, but shall specify that the direction to initiate or intervene in an action has been given and that the action, the defendants, and the other particulars shall, once formally commenced, be disclosed to any person upon inquiry, unless to do so would jeopardize the agency’s ability to effectuate service of process on one or more unserved parties, or that to do so would jeopardize its ability to conclude existing settlement negotiations to its advantage. (e) The Legislative Body shall have control of the goals and objectives of any litigation involving the City, but the General Counsel shall have the discretion and authority over litigation strategy and tactics, and be able to take action on routine or procedural matters such as stipulating to reasonable time extensions, executing tolling agreements, and conducting discovery. 9.7 Conflicts of Interest All Legislative Body members are subject to the provisions of California Law, such as Chapter 1, Title 9, of the California Government Code, relative to conflicts of interest, and to conflicts of interest codes adopted by the Legislative Body. Any Legislative Body member prevented from voting because of a conflict of interest shall refrain from in any way participating in the matter giving rise to the conflict. Where abstention from a matter is made on the basis of a conflict of interest arising from a financial interest in the decision, the Legislative Body member shall announce their abstention from the matter when it is first opened, and then shall set forth the reason for the abstention with the degree of specificity at least equal to the disclosure of the Legislative Body member’s financial interests on the Legislative Body member’s annual statement of financial interests; immediately after such announcements, the Legislative Body member shall leave the room. The Legislative Body member shall not overhear the staff report, participate in the discussion or deliberations and shall not otherwise make or participate in making the decision or in any way attempt to use his or her official position to influence the decision. This shall not prevent the conflicted Legislative Body member from coming before the Legislative Body solely during the public comment period as an affected citizen to state his/her opinion on how the matter impacts their disqualifying interests. Reserved G.8.b Packet Pg. 156 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -21- 01135/0001\145204.03 9.8 No Financial Interest in Contracts A member of a Legislative Body shall not have a financial interest in a contract within the meaning of (Gov’t Code §1090 et seq.) made in their official capacity and such contract shall be null and void whether the member participates in the making of the contract or not. 9.9 Ethical Standards A member of a Legislative Body shall maintain the highest ethical standards and shall adhere to all laws and the ordinances and regulations of the City in carrying out their duties. ARTICLE X– DECORUM AND ORDER 10.1 Decorum and Order – Legislative Body Members (a) Any member of the Legislative Body wishing to speak, or any member of the public wishing to address the Legislative Body must first obtain the floor by being recognized by the Presiding Officer. The Presiding Officer must recognize any member of the Legislative Body who seeks the floor when appropriately entitled to address the Legislative Body. The Legislative Body member shall confine himself or herself to the question under debate. (b) Any member of the Legislative Body, including the Presiding Officer, may bring a matter of business properly before the Legislative Body for decision by making a motion. Any Legislative Body member, including the Presiding Officer, except the Legislative Body member making the motion, may second a motion. Once a motion is seconded, it may be opened for discussion and debate. (c) The Presiding Officer shall determine all points of order, subject to the right of any member to appeal to the majority Legislative Body. (d) A Legislative Body member, once recognized, shall not be interrupted while speaking unless called to order by the Presiding Officer, unless a Point of Order is raised by another Legislative Body member, or unless the speaker chooses to yield to questions from another Legislative Body member. Any Legislative Body member called to order while speaking shall cease speaking immediately until the question of order is determined. If ruled to be in order, the member shall be permitted to proceed. If ruled to be not in order, the member shall comply with ruling of the Presiding Officer. (e) Legislative Body members shall accord the utmost courtesy to each other, to City or Legislative Body employees, and to the public appearing before the Legislative Body and shall refrain at all times from rude and derogatory remarks, reflections as to integrity, abusive comments and statements as to motives and personalities, which disrupt, disturb or otherwise impede the orderly conduct of the Legislative Body meeting. (f) Any Legislative Body member may move to require the Presiding Officer to enforce the rules and the affirmative vote of a majority of the Legislative Body shall require the member to so act. G.8.b Packet Pg. 157 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -22- 01135/0001\145204.03 (g) The members of the Legislative Body shall not engage in communications between themselves during the Legislative Body meeting (including breaks) regarding matters being considered on the agenda unless and until the Legislative Body has opened that agenda item. In order to minimize exposure to a Brown Act violation, Legislative Body members are discouraged from discussing any City business during breaks or before and after meetings; City business may only be discussed by a quorum of Legislative Body members when it is opened as a duly-noticed agenda item. (h) The members of the Legislative Body shall always be attentive and show respect to those addressing the Legislative Body provided that nothing shall prevent the enforcement of the rules of decorum herein. (i) No Legislative Body member attending a meeting of another City commission or committee shall make any statement or give the appearance or indicate in any way that they are representing the Legislative Body unless they have been authorized to do so by the Legislative Body. When making a comment at such a meeting, the Legislative Body member should make it clear that they are speaking solely as an individual. Unless officially appointed to participate on a committee, Legislative Body members should make an effort not to insert themselves into or take positions on matters which will ultimately be decided upon by the Legislative Body. (j) The Legislative Body may punish its own members for misconduct pursuant to Section 10.5. 10.2 Decorum and Order – Employees (a) Members of administrative staff and employees of the Legislative Body shall observe the same rules of procedure and decorum applicable to Legislative Body members. The City Manager shall ensure that all staff and employees observe such decorum. Any staff members, including the City Manager, desiring to address the Legislative Body or members of the public shall first be recognized by the Presiding Officer. All remarks shall be addressed to the Presiding Officer and not to any one individual Legislative Body member or member of the public. (b) Questions of City staff and/or requests for follow-up or additional background information should be directed only to the City Manager, General Counsel, Assistant City Manager, or Department Heads. The Office of the City Manager should be copied on any request, except those to the General Counsel. When in doubt about what staff contact is appropriate, Legislative Body members should ask the City Manger for direction. Materials supplied to a Legislative Body member in response to a request will be made available to all members of the Legislative Body so that all have equal access to information. (c) Legislative Body members should not solicit any type of political support (financial contributions, display of posters or lawn signs, name on support list, etc.) from City staff. City staff may, as private citizens with constitutional rights, support political candidates but all such activities must be done away from the workplace. G.8.b Packet Pg. 158 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -23- 01135/0001\145204.03 10.3 Decorum and Order – Public (a) Members of the public attending Legislative Body meetings shall observe the same rules of order and decorum applicable to the Legislative Body. All remarks and questions should be addressed to the Presiding Officer and not to any individual Legislative Body member, staff member or other person. (b) Any person conducting their public remarks or behavior before the Legislative Body in such a way as to actually cause disruption to the conduct of the meeting may be removed from the room by the sergeant-at-arms as directed by the Presiding Officer. Unauthorized remarks from the audience, stamping of feet, whistles, yells and similar disruptive demonstrations shall not be tolerated nor permitted by the Presiding Officer, who may direct the sergeant-at-arms to remove such offenders from the room or call a recess of the meeting whereby the Council will leave the chamber. Aggravated cases may be prosecuted on appropriate complaint signed by the Presiding Officer. (c) Members of the public shall be allowed to video or audio record a public meeting unless such recording becomes an actual and unreasonable disruption to the Legislative Body’s ability to carry-out the meeting. 10.4 Enforcement of Decorum (a) The Bell Police Chief or designee shall be ex-officio sergeant-at-arms of the Legislative Body. He shall carry out all orders and instructions given him by the Presiding Officer for the purpose of maintaining order and decorum in the Legislative Body meeting. Upon instructions from the Presiding Officer, it shall be the duty of the sergeant-at-arms to eject any unruly person from the Legislative Body meeting chamber or place him or her under arrest or both for conduct actually disrupting to the Legislative Body proceedings. Such person may be barred from further participation in the meeting. (b) Generally, if the Presiding Officer intends to eject a person for disruption of a meeting, a public warning should be issued. Examples of remarks or behavior that cause actual disruption of the Legislative Body proceedings include: (i) Unauthorized remarks from the audience, stamping of feet , whistles, yells, outbursts, catcalls, cursing, applause, offensive or obscene gestures or similar demonstrations which disrupt, disturb or otherwise impede the Legislative Body proceedings (ii) Interrupting speakers or speaking when not recognized (iii) Calling members of the audience names or threatening them (iv) Extended discussion of matters beyond the jurisdiction of the Legislative Body (v) Physical threats to any person (vi) Shouting into the microphone (vii) Dumping objects on the floor of the chamber where the proceeding is held for symbolic or other reasons (viii) Speaking beyond the time limits G.8.b Packet Pg. 159 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -24- 01135/0001\145204.03 (ix) Being unduly repetitious (c) Examples of non-disruptive conduct include: (i) Silent gestures by members of the audience, such as a thumbs up or thumbs down or Nazi salute that are not otherwise disruptive of the meeting (ii) Catcalls or booing during a time allowed for applause that does not otherwise disrupt the meeting (iii) Criticisms of public officials or staff during a time reserved for public comment that does not otherwise violate Council procedures and does not disrupt the meeting (d) As set forth in Government Code § 54957.9, in the event that any meeting is willfully interrupted by a group or groups of persons so as to render the orderly conduct of such meeting infeasible and order cannot be restored by the removal of individuals who are willfully interrupting the meeting, the Legislative Body members may order the meeting room cleared and continue in session. Only matters appearing on the agenda may be considered in such a session. Duly accredited representatives of the press or other news media, except those participating in the disturbance, shall be allowed to attend any session held pursuant to this Section. Nothing in this Section shall prohibit the Legislative Body from establishing a procedure for readmitting an individual or individuals not responsible for willfully disturbing the orderly conduct of the meeting. 10.5 Censure of Legislative Body Members (a) It shall be a violation of this section for any sitting member of a Legislative Body to violate any general law or regulation or ethical standard, and any, rule, law, ordinance or resolution of the City of Bell. It shall also be a violation of this section for any sitting member of a Legislative Body to violate an administrative policy of the City which has been adopted following a vote of the Legislative Body or the City Council on the matter and which by its terms is expressly made applicable to the Legislative Body. (b) Any violation of the foregoing paragraph by a Legislative Body member may be punished through the administration of a public censure of the member by the member’s Legislative Body. Such censure may be in addition to any other punishment applicable to the violation. For purposes of this section, “censure” shall mean the adoption of a motion setting forth a statement of disapproval of a Legislative Body member’s conduct. (c) When evaluating a request for defense or indemnification made by the censured member in litigation arising from the censured conduct, the record of the censure shall be considered by the Legislative Body. Such record shall not be determinative. Failure of the Legislative Body to censure the conduct of a member does not constitute waiver of the Body’s right to refuse to indemnify or defend the member in an action. (d) A Legislative Body member may not be made the subject of a motion for censure without first being given notice of the violation and an opportunity to correct the G.8.b Packet Pg. 160 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -25- 01135/0001\145204.03 violation, if it can reasonably be corrected. Upon a continued violation or failure to correct, the charged member shall be given notice and an opportunity to be heard as follows: (i) Only a sitting member of the Legislative Body whose member commits the violation may initiate proceedings for the censure of one of its members. (ii) Proceedings shall be commenced by the presentation of a written statement of charges to the subject Legislative Body member with a copy delivered concurrently to the Clerk/Secretary by the member initiating the charge. Initiation shall not require the prior approval of the Legislative Body. The statement of charges shall be given at least ten days prior to the meeting at which the censure motion is proposed to be brought. The notice shall contain, at a minimum, the designation of the specific rule, law regulation, etc. which the member is claimed to have violated and a statement of the date, place and time at which the violation occurred. The statement shall further contain a description of the conduct of the member which is alleged to constitute the violation. The statement of charges shall be delivered to all other Legislative Body persons. (iii) Within seven (7) days after delivery of the statement of charges, the charged member should deliver a written response to the other members of the Legislative Body unless the charged member chooses to defer to response to the hearing. (e) The motion for censure shall be agendized and considered at the first regular meeting occurring 10 days following the delivery of the statement of changes to the member and Clerk/Secretary. The hearing may not be continued except upon the absence from the meeting of a member of the Legislative Body other than the member bringing the charge or the member who is the subject of the charge. (i) The hearing shall be conducted in an open session by the Presiding Officer unless the Presiding Officer is a party to the action, in which case the Vice Chair or some other member shall conduct the proceedings. (ii) The hearing shall generally proceed by a reading of the charges by the charging member. The charging member may present witnesses; the charged member may answer in rebuttal; members of the public may speak in favor or opposed to the charge; and the remaining members may speak to the charges in that order. (iii) Passage of the motion for censure shall require a majority vote of the members of the total Legislative Body. The voting members shall not recess to closed session for deliberation. (f) If the motion for censure does not pass, the proceedings shall be at an end. A new motion for censure on the same grounds of violation may not thereafter be commenced against the same Legislative Body member for a period of 1 calendar year from date of the vote. However, new proceedings may be commenced on the same charges within the 1 year period on the vote of 4 members of the Legislative Body. (g) If the motion for censure does pass, such motion shall become a part of the public record a copy of which shall be made available upon demand to any member of the G.8.b Packet Pg. 161 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -26- 01135/0001\145204.03 public, subject to the City’s Uniform Schedule of Fees, and notice of same shall be placed in the administrative file of the Legislative Body member. (h) Either with or without the formal process of Censure, the Legislative Body may impose sanctions on its members whose conduct does not comply with these procedures, including loss of seniority or committee assignments, and may remove members from any committee, commission, agency or authority to which they have been appointed as a member of the Legislative Body. 10.6 Persons Authorized To Be Within Platform/Dais No person except Legislative Body officials or authorized Legislative Body staff shall be permitted behind the Legislative Body dais without permission or consent of the Presiding Officer. 10.7 Personal Privilege If a Legislative Body member is personally offended by the remarks of another member, the offended Legislative Body member should make notes of the actual words used and call for a “point of personal privilege” that challenges the other member to justify or apologize for the language used. The Presiding Officer will maintain control of this discussion. The right of a member to address the Legislative Body on a question of personal privilege shall be limited to cases in which his integrity, character, or motives are assailed, questioned or impugned. ARTICLE XI – PARLIMENTARY PROCUEDRES 11.1 Procedures In Absence Of Rules (a) Unless otherwise specified in this Manual or by ordinance or resolution, meetings of the Legislative Body shall be conducted in accordance with the most recently revised edition of Robert’s Rules of Order. In the event of any conflict between Robert’s Rules and this Manual, the provisions of this Manual shall govern. (b) Any provision of these rules not governed by the Government Code may be temporarily suspended by a two-thirds vote of all members of the Legislative Body. Such suspension may be moved at any time by a member. The vote on any such suspension shall be taken by yeas or nays and entered upon the record. (c) Motions, motion procedures and precedence of motions shall be conducted in accordance with Exhibit “A” hereto. 11.2 Voting (a) After a full opportunity for debate if it appears that there is a consensus of opinion among the members of the Legislative Body on the matter to be voted upon, the Presiding Officer may state the consensus of the Legislative Body and ask if there is any objection. If there is no objection, the consensus as so stated shall become the order of the G.8.b Packet Pg. 162 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -27- 01135/0001\145204.03 Legislative Body. The Presiding Officer may also determine that a consensus exists following a call for a vote by any member of the Legislative Body by a Motion to Call the Question. (b) Except as in Subsection (a) above, otherwise, all votes of the Legislative Body shall be taken by electronic vote. In the event the electronic voting machine is not functioning or otherwise unavailable, vote shall be by roll call vote. The order voting shall be alphabetical with the Presiding Officer voting last. The Clerk/Secretary shall call the names of all members seated when a roll call vote is ordered or required. Members shall respond ‘aye’, ‘no’ or ‘abstain.’ After every vote the Legislative Body shall declare the result and, on all but consensus votes, shall note for the record the number of votes for or against the question. The ayes and noes shall be taken upon the passage of all ordinances and resolutions and entered upon the official record of the Legislative Body. 11.3 Votes Needed (a) Usually, in the absence of a contrary statutory provision (such as urgency measures), a majority of a quorum which constitutes a simple majority of the Legislative Body may act for that body. However, resolutions, orders for the payment of money, and all ordinances require a recorded majority vote of the total membership of a Legislative Body. (b) State law may dictate certain instances in which the number of votes required is greater than a majority of all Legislative Body members. As a matter of convenience, questions on which the voting requirement is varied by the State statutes and these rules, include, without limitation, the following: (i) Levying Taxes - Ordinances providing for the Assessment and collection of taxes require the approval of two-thirds of the members of the whole Council. (ii) Assessment - Assessments require a two-thirds vote of the members of the whole Council. (iii) Bonds and Certificates of Participation - Authorizing these financial instruments the issuing requires a two-thirds vote of the members of the whole Council. (iv) Eminent Domain - The exercise of Eminent Domain requires a two-thirds vote of the members of the whole Council. (v) Certain Parliamentary Motions – Motions requiring a supermajority vote are noted in the Motions Chart attached hereto. (c) Any official with a conflict of interest is not counted for purposes of establishing a quorum, and must not vote on, make, participate in any way in, or attempt to influence the decision. A Legislative Body member abstaining on any other grounds than a conflict under the Political Reform Act shall be counted as present for purposes of a quorum and such abstentions are counted with the majority. The Legislative Body member who leaves the G.8.b Packet Pg. 163 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -28- 01135/0001\145204.03 dais solely to avoid participating in a specific item shall, in absence of a conflict, be counted as if they were present but abstaining and such abstentions are also counted with the majority. 11.4 Reconsider Any Legislative Body member who voted with the majority may move to reconsider any action at the same meeting or, within sixty (60) calendar days, request in writing to the Clerk/Secretary that it be agendized for consideration at the following meeting, provided that reconsideration shall not be permitted where a party other than the City has acted in reliance on the Legislative Body’s action and would be substantially prejudiced by such reconsideration. The Clerk shall apprise the City Attorney of any facts constituting substantial prejudice and may rely upon the determination of the City Attorney. In the event that the subject of the reconsideration is a motion that failed as the result of a tie vote, any Legislative Body member who voted against the earlier motion may move for reconsideration at the following meeting. The member seeking reconsideration must have the matter agendized unless the motion will be made at the same meeting where the original action was taken. If the motion to reconsider passes, then the original item may be reconsidered at that time or agendized for the next meeting which meets any applicable noticing requirements. After a motion for reconsideration has once been acted upon, no other motion for reconsideration thereof shall be made without unanimous consent of the Legislative Body. 11.5 Tie Votes Tie Votes shall be lost motions unless an additional Motion is made which obtains a majority vote to break the tie. When all Legislative Body members are present, a tie vote on whether to grant an appeal from official action shall be considered a denial of such appeal. In such case the findings in support of the decision shall be those of the lower body. If a tie vote results at a time when less than all members of the Legislative Body are present, the matter shall automatically be continued to the agenda of the next regular meeting of the Legislative Body, unless otherwise ordered by the Legislative Body. 11.6 Abstentions Members of the Legislative Body are discouraged from abstaining from a vote for reasons other than a legally-disqualifying, financial conflicts of interest. However, if a member chooses to abstain from voting as a result of what he/she perceives as a personal or non-financial conflict of interest, the member may do so after stating for the record the nature of the perceived conflict. In the event of such a perceived conflict (as opposed to a legally-disqualifying conflict), the member is not required to leave the dais. (a) A Legislative Body member shall generally express their positions on all matters except those where they are required to abstain due to legally recognized conflict of interest. (b) A Legislative Body member who has appealed the action of any person or body of the City on a matter which does not constitute a conflict of interest for the member under any law, may participate in the hearing on the appeal, unless there is clear and convincing evidence that such member is not objective or the member feels that they are unable to remain G.8.b Packet Pg. 164 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -29- 01135/0001\145204.03 neutral, or as may be otherwise advised by the General Counsel. Notwithstanding any contrary provisions herein, in bringing an appeal, the Legislative Body member need not give reasons for making the appeal. (c) A Legislative Body member may abstain from action on a matter where, in the member’s opinion, there might be a public perception that participation in the discussion or decision would be inappropriate even though the member has no disqualifying financial interest within the meaning of FPPC rules and regulations. 11.7 Votes Of Members Previously Absent (a) A Legislative Body member who was not present at a meeting should generally not vote on the approval of minutes for that meeting, but the voting on such minutes shall have no effect on the validity of the minutes. (b) A Legislative Body member may vote on a continued item after an absence from the earlier public hearing of the matter if, prior to the vote, the member affirms on the record that they have familiarized themselves with the record of the earlier meeting and are prepared to vote on the issue. If the member shall abstain from the vote, the member shall be counted towards the quorum on the issue and the abstention shall be counted with the vote of the majority of the quorum. (c) The forgoing shall not apply to the matter of a vote on the minutes of a meeting at which the member was not in attendance. In that instance, the member abstaining on the grounds of non-attendance at the meeting to which the minutes pertain shall not be counted towards the quorum on the issue and the abstention shall not be counted with the votes of the majority of the quorum. 11.8 Appeals by Members of Legislative Body Except where otherwise provided by ordinance, a member of the Legislative Body shall be deemed an interested person in any matter by a subordinate body and shall have standing to appeal to the Legislative Body any decision by a Sub-Legislative Body, or any determination made by any official of City by filing a written appeal. The appeal shall not state any grounds for the appeal and the resulting hearing shall be de novo. The appeal must be filed within 10 days of the making of the decision being appealed and shall be filed with the Clerk/Secretary who shall give written notice to the applicant, and provide written notice to other persons as required for the original action. The hearing shall be held at the first regular meeting of the Council for which notice can be legally given. No appeal fee shall be required to be paid for such appeals. 11.9 Findings and Decisions Decisions of a Legislative Body, when acting as a quasi adjudicative body (public hearings) should be framed in terms of “findings” of fact, potentially relevant conclusions of law, and ultimate decisions showing the basis for the decision and the nexus between the findings, the conclusions and the decision. The Legislative Body members must consider any legally- G.8.b Packet Pg. 165 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -30- 01135/0001\145204.03 mandated findings applicable to a matter and consider the evidence presented to them in light of such findings in making their decisions. ARTICLE XII- PROCEDURES FOR CONSIDERATION OF DEMANDS FOR CORRECTIVE ACTION 12.1 Requirement of Written Demand Prior to any person commencing a judicial action for injunction or mandamus to declare any action taken by the Legislative Body void because of failure to observe Brown Act requirements, such person must first serve upon the Clerk/Secretary a written demand clearly describing the challenged action, the nature of the claimed violation, and the corrective action sought. Such demand must be served upon the Clerk/Secretary within ninety (90) days of the alleged violation or thirty (30) days if the action was taken in open session but in violation of § 54952.2 of the Government Code. Failure to serve any such demand within this thirty (30) day period shall result in the loss of any right to challenge any action alleged to have been taken in violation of §§ 54953, 54954.2, 54954.5, 54954.6, 54956, or 54956.5 of the Government Code. If the written demand is timely served, the Legislative Body has up to thirty (30) days to cure and correct its action. If the Legislative Body does not act, any lawsuit must be filed within the next fifteen (15) days. 12.2 Consideration of Corrective Action Upon receipt of such a demand, consideration of the demand shall immediately be placed on the agenda for the next meeting of the Legislative Body. If the demand is received less than 72 hours prior to the time set for the next meeting, the Legislative Body may determine that the notice constitutes the initiation of litigation, and that the need to take action on the threatened litigation arose subsequent to the posting of the agenda, and may consider it at that meeting pursuant to Section 5.9, above. A description of any item so placed on the agenda shall include both consideration of the demand, and the possibility of corrective action by the Legislative Body. In considering such demands, the Legislative Body shall first determine by motion whether to reconsider the prior action. The motion to reconsider shall be in order as long as made by a party on the prevailing side. If no motion to reconsider is carried the Clerk/Secretary shall inform the demanding party in writing of the Legislative Body’s decision not to cure or correct the challenged action. (See, § 11.4 hereof.) 12.3 Implementing Corrective Action If a motion to reconsider passes, the Presiding Officer may entertain a motion to take corrective action. Any motion taking corrective action shall address the concerns raised in the consideration of corrective action. The motion taking corrective action may include a motion to rescind prior action taken, as appropriate. Passage of a motion to rescind invalidates prior action only as of the time of the passage of the motion, and not from the date of the initial action. A motion implementing corrective action resulting from a written demand is out of order if the action complained of: (i) was in connection with the sale or issuance of notes, bonds, or other G.8.b Packet Pg. 166 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission -31- 01135/0001\145204.03 evidences of indebtedness, or any contract, agreement, or incident thereto; (ii) gave rise to a contractual obligation upon which a party has, in good faith, detrimentally relied; or (iii) was taken in connection with the collection of any tax. In any event, the Legislative Body shall notify the party making the demand in writing of its decision to take corrective action, and shall describe any corrective action taken. This notice shall be given to the demanding party as soon as possible after the meeting, but in no event more than 30 days after receipt of the demand. ARTICLE XIII – MISCELLANOUS 13.1 Interpretation This Manual shall be liberally construed to effectuate its purpose and no ordinance, resolution, proceeding or other action of the Legislative Body shall be invalidated or the legality thereof otherwise affected by the failure or omission of the Legislative Body to technically comply with, observe or follow the within rules. The City Council may, by resolution, adopt further rules of interpretation or practice. 13.2 Amendments This Manual may be amended from time to time as necessary by resolution passed by a majority vote of the City Council at any regular or special meeting, provided that no such amendment shall be adopted unless at least seven days’ written notice thereof has been previously given to all Legislative Body members serving the City. Such notice shall identify the section or sections of the Manual proposed to be amended. 13.3 Power to Issue Subpoenas The Legislative Body may issue subpoenas requiring attendance of witnesses or production of books or other document for evidence or testimony any action or proceeding pending before it. (Gov’t Code § 37104.) Subpoenas shall be signed by the Presiding Officer and attested by the Clerk. They may be served as subpoenas are in civil actions. [END] G.8.b Packet Pg. 167 Attachment: Attachment B - City of Bell Manual of Procedural Guideline for the Conduct of City Council and Constituent Body_Commission ATTACHMENT C Codes of Ethics and Conduct ATTACHMENT C 1. City of Bell: Personal Code of Conduct for Members of the City Council 2. City of Irvine Municipal Code: Division 6 – Code of Ethics 3. City of Riverside Municipal Code: Chapter 2.78 – Code of Ethics and Conduct 4. City of Santa Clara: Code of Ethics & Values 5. City of Sunnyvale: 2018 Code of Ethics and Conduct for Elected and Appointed Officials 6. Institute for Local Government: Public Service Ethics/Transparency Law G.8.c Packet Pg. 168 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) ATTACHMENT C-1 City of Bell: Personal Code of Conduct for Members of the City Council ATTACHMENT C-1 City of Bell: Personal Code of Conduct for Members of the City Council G.8.c Packet Pg. 169 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) G.8.c Packet Pg. 170 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) G.8.c Packet Pg. 171 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) G.8.c Packet Pg. 172 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) ATTACHMENT C-2 City of Irvine Municipal Code: Division 6 – Code of Ethics ATTACHMENT C-2 City of Irvine Municipal Code: Division 6 – Code of Ethics G.8.c Packet Pg. 173 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Irvine, CA Code of Ordinances about:blank 1 of 6 6/20/2019, 1:34 PM G.8.c Packet Pg. 174 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Irvine, CA Code of Ordinances about:blank 2 of 6 6/20/2019, 1:34 PM G.8.c Packet Pg. 175 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Irvine, CA Code of Ordinances about:blank 3 of 6 6/20/2019, 1:34 PM G.8.c Packet Pg. 176 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Irvine, CA Code of Ordinances about:blank 4 of 6 6/20/2019, 1:34 PM G.8.c Packet Pg. 177 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Irvine, CA Code of Ordinances about:blank 5 of 6 6/20/2019, 1:34 PM G.8.c Packet Pg. 178 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Irvine, CA Code of Ordinances about:blank 6 of 6 6/20/2019, 1:34 PM G.8.c Packet Pg. 179 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) ATTACHMENT C-3 City of Riverside Municipal Code: Chapter 2.78 – Code of Ethics and Conduct ATTACHMENT C-3 City of Riverside Municipal Code: Chapter 2.78 – Code of Ethics and Conduct G.8.c Packet Pg. 180 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 1 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 181 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 2 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 182 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 3 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 183 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 4 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 184 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 5 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 185 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 6 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 186 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 7 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 187 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 8 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 188 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 9 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 189 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 10 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 190 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 11 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 191 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 12 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 192 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 13 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 193 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Riverside, CA Code of Ordinances about:blank 14 of 14 6/20/2019, 1:36 PM G.8.c Packet Pg. 194 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) ATTACHMENT C-4 City of Santa Clara: Code of Ethics & Values ATTACHMENT C-4 City of Santa Clara: Code of Ethics & Values G.8.c Packet Pg. 195 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Code of Ethics & Values Santa Clara's Code of Ethics & Values, adopted by the City Council in March of 2000 and modified by Council in August of 2001, is designed to provide clear, positive statements of ethical behavior reflecting the core values of the community. The Code includes practical strategies for addressing ethical questions and a useful framework for decision-making and handling the day-to-day operations of the municipality. The current Code of Ethics & Values was developed in 1999 by a Committee composed of three elected officials, nine City commissioners, two community members, the City Manager and the City Attorney. A previous Code was adopted in the 1960s and periodically updated, but the Committee took a fresh approach by working with the Markkula Center for Applied Ethics at Santa Clara University to create a new Code of Ethics & Values for the City that would better reflect the issues and concerns of today's complex and diverse society. ETHICAL STANDARDS FOR CONTRACTORS SEEKING TO ENTER INTO AN AGREEMENT WITH THE CITY OF SANTA CLARA, CALIFORNIA Goals of the Code of Ethics & Values To make Santa Clara a better community, built on mutual respect and trust About Santa Clara + Board & Commissions + Census 2020 City Newsroom + Council + Council Districts Council Meetings + City Auditor City Code/Charter Committees + Ethics & Values - Code of Ethics & Values Public Calendars of Certain City Officials Departments + Election Info Aircraft Noise Stadium Authority + Santa Clara Chamber of Commerce and Convention Center Convention-Visitors Bureau Agreement + Successor Agency/Oversight Board Open City Hall Permits and Other City Forms + Sustainability Utility Rates Code of Ethics & Values | City of Santa Clara http://santaclaraca.gov/government/ethics-values/code-of-ethics-values 1 of 3 6/20/2019, 1:42 PM G.8.c Packet Pg. 196 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) To promote and maintain the highest standards of personal and professional conduct among all involved in City government elected officials, City staff, volunteers, and members of the City's boards, commissions and committees The Code of Ethics & Values is a touchstone for members of boards, commissions and committees in fulfilling their roles and responsibilities. Preamble The proper operation of democratic government requires that decision-makers be independent, impartial, and accountable to the people they serve. The City of Santa Clara has adopted this Code of Ethics & Values to promote and maintain the highest standards of personal and professional conduct in the City's government. All elected and appointed officials, City employees, volunteers, and others who participate in the city's government are required to subscribe to this Code, understand how it applies to their specific responsibilities, and practice its eight core values in their work. Because we seek public confidence in the City's services and public trust of its decision-makers, our decisions and our work must meet the most demanding ethical standards and demonstrate the highest levels of achievement in following this code. 1. As a Representative of the City of Santa Clara, I will be ethical. In practice, this value looks like: a. I am trustworthy, acting with the utmost integrity and moral courage. b. I am truthful, do what I say I will do, and am dependable. c. I make impartial decisions, free of bribes, unlawful gifts, narrow political interests, and financial and other personal interests that impair my independence of judgment or action. d. I am fair, distributing benefits and burdens according to consistent and equitable criteria. e. I extend equal opportunities and due process to all parties in matters under consideration. If I engage in unilateral meetings and discussions, I do so without making voting decisions. f. I show respect for persons, confidences, and information designated as "confidential." g. I use my title(s) only when conducting official City business, for information purposes, or as an indication of background and expertise, carefully considering whether I am exceeding or appearing to exceed my authority. 2. As a Representative of the City of Santa Clara, I will be professional. In practice, this value looks like: a. I apply my knowledge and expertise to my assigned activities and to the interpersonal relationships that are part of my job in a consistent, confident, competent, and productive manner. b. I approach my job and work-related relationships with a positive attitude. c. I keep my professional knowledge and skills current and growing. 3. As a Representative of the City of Santa Clara, I will be service-oriented. In practice, this value looks like: a. I provide friendly, receptive, courteous service to everyone. b . I am attuned to, and care about, the needs and issues of citizens, public officials, and city workers. c. In my interactions with constituents, I am interested, engaged, and responsive. 4. As a Representative of the City of Santa Clara, I will be fiscally responsible. Code of Ethics & Values | City of Santa Clara http://santaclaraca.gov/government/ethics-values/code-of-ethics-values 2 of 3 6/20/2019, 1:42 PM G.8.c Packet Pg. 197 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) In practice, this value looks like: a. I make decisions after prudent consideration of their financial impact, taking into account the long-term financial needs of the City, especially its financial stability. b. I demonstrate concern for the proper use of City assets (e.g., personnel, time, property, equipment, funds) and follow established procedures. c. I make good financial decisions that seek to preserve programs and services for City residents. 5. As a Representative of the City of Santa Clara, I will be organized. In practice, this value looks like: a. I act in an efficient manner, making decisions and recommendations based upon research and facts, taking into consideration short and long term goals. b. I follow through in a responsible way, keeping others informed, and responding in a timely fashion. c. I am respectful of established City processes and guidelines. 6. As a Representative of the City of Santa Clara, I will be communicative. In practice, this value looks like: a. I convey the City's care for and commitment to its citizens. b. I communicate in various ways that I am approachable, open-minded and willing to participate in dialog. c. I engage in effective two-way communication, by listening carefully, asking questions, and determining an appropriate response which adds value to conversations. 7. As a Representative of the City of Santa Clara, I will be collaborative. In practice, this value looks like: a. I act in a cooperative manner with groups and other individuals, working together in a spirit of tolerance and understanding. b. I work towards consensus building and gain value from diverse opinions. c. I accomplish the goals and responsibilities of my individual position, while respecting my role as a member of a team. d. I consider the broader regional and State-wide implications of the City's decisions and issues. 8. As a Representative of the City of Santa Clara, I will be progressive. In practice, this value looks like: a. I exhibit a proactive, innovative approach to setting goals and conducting the City's business. b. I display a style that maintains consistent standards, but is also sensitive to the need for compromise, "thinking outside the box," and improving existing paradigms when necessary. c. I promote intelligent and thoughtful innovation in order to forward the City's policy agenda and City services. Code of Ethics & Values | City of Santa Clara http://santaclaraca.gov/government/ethics-values/code-of-ethics-values 3 of 3 6/20/2019, 1:42 PM G.8.c Packet Pg. 198 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) ATTACHMENT C-5 City of Sunnyvale: 2018 Code of Ethics and Conduct for Elected and Appointed Officials ATTACHMENT C-5 City of Sunnyvale: 2018 Code of Ethics and Conduct for Elected and Appointed Officials G.8.c Packet Pg. 199 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) City of Sunnyvale 2018 Code of Ethics and Conduct for Elected and Appointed Officials "Conduct is three-fourths of our life and its largest concern." -- Matthew Arnold G.8.c Packet Pg. 200 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 2 of 19 Table of Contents Title Page No. A. Ethics 3 B. Conduct 5 1. Elected and Appointed Officials’ Conduct with One Another 5 2. Elected and Appointed Officials’ Conduct with City Staff 7 3. Elected and Appointed Officials’ Conduct with the Public 10 4. Council Conduct with Other Public Agencies 12 5. Council Conduct with Boards and Commissions 12 6. Conduct with the Media 13 C. Sanctions 14 D. Principles of Proper Conduct 16 E. Checklist for Monitoring Conduct 17 F. Glossary of Terms 17 G. Implementation 17 APPENDIX A - Model of Excellence Member Statement 19 G.8.c Packet Pg. 201 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 3 of 19 Policy Purpose The Sunnyvale City Council has adopted a Code of Ethics and Conduct for members of the City Council and the City’s boards and commissions to assure public confidence in the integrity of local government and its effective and fair operation. A. ETHICS The citizens and businesses of Sunnyvale are entitled to have fair, ethical and accountable local government which has earned the public’s full confidence for integrity. In keeping with the City of Sunnyvale Commitment to Excellence, the effective functioning of democratic government therefore requires that:  public officials, both elected and appointed, comply with both the letter and spirit of the laws and policies affecting the operations of government;  public officials be independent, impartial and fair in their judgment and actions;  public office be used for the public good, not for personal gain; and  public deliberations and processes be conducted openly, unless legally confidential, in an atmosphere of respect and civility. To this end, the Sunnyvale City Council has adopted a Code of Ethics and Conduct for members of the City Council and of the City’s boards and commissions to assure public confidence in the integrity of local government and its effective and fair operation. The Ethics section of the City’s Code of Ethics and Conduct provides guidance on ethical issues and questions of right and wrong. 1. Act in the Public Interest. Recognizing that stewardship of the public interest must be their primary concern, members will work for the common good of the people of Sunnyvale and not for any private or personal interest, and they will assure fair and equal treatment of all persons, claims and transactions coming before the Sunnyvale City Council, boards and commissions. 2. Comply with both the spirit and the letter of the Law and City Policy. Members shall comply with the laws of the nation, the State of California and the City of Sunnyvale in the performance of their public duties. These laws include, but are not limited to: the United States and California constitutions; the Sunnyvale City Charter; laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities, and open processes of government; and City ordinances and policies. 3. Conduct of Members. The professional and personal conduct of members must be above reproach and avoid even the appearance of impropriety. Members shall refrain from abusive conduct, personal charges or verbal attacks upon the character or motives o f other members of Council, boards and commissions, the staff or public. 4. Respect for Process. Members shall perform their duties in accordance with the processes and rules of order established by the City Council and board and commissions governing the deliberation of public policy issues, meaningful involvement of the public, and implementation of policy decisions of the City Council by City staff. G.8.c Packet Pg. 202 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 4 of 19 5. Conduct of Public Meetings. Members shall prepare themselves for public issues; listen courteously and attentively to all public discussions before the body; and focus on the business at hand. They shall refrain from interrupting other speakers; making personal comments not germane to the business of the body; or otherwise interfering with the orderly conduct of meetings. 6. Decisions Based on Merit. Members shall base their decisions on the merits and substance of the matter at hand, rather than on unrelated considerations. 7. Communication. Members shall publicly disclose substantive information that is relevant to a matter under consideration by the Council or boards and commissions, which they may have received from sources outside of the public decision-making process. 8. Conflict of Interest. In order to assure their independence and impartiality on behalf of the common good, members shall not use their official positions to influence government decisions in which they have a material financial interest, or where they have an organizational responsibility or personal relationship which may give the appearance of a conflict of interest. In accordance with the law, members shall disclose investments, interests in real property, sources of income, and gifts; and they shall abstain from participating in deliberations and decision-making where conflicts may exist. 9. Gifts and Favors. Members shall not take any special advantage of services or opportunities for personal gain, by virtue of their public office, that are not available to the public in general. They shall refrain from accepting any gifts, favors or promises of future benefits which might compromise their independence of judgment or action or give the appearance of being compromised. 10. Confidential Information. Members shall respect the confidentiality of information concerning the property, personnel or affairs of the City. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal, financial or other private interests. 11. Use of Public Resources. Members shall not use public resources not available to the public in general, such as City staff time, equipment, supplies or facilities, for private gain or personal purposes. 12. Representation of Private Interests. In keeping with their role as stewards of the public interest, members of Council shall not appear on behalf of the private interests of third parties before the Council or any board, commission or proceeding of the City, nor shall members of boards and commissions appear before their own bodies or before the Council on behalf of the private interests of third parties on matters related to the areas of service of their bodies. 13. Advocacy. Members shall represent the official policies or positions of the City Council, board or commission to the best of their ability when designated as delegates for this purpose. When presenting their individual opinions and positions, members shall explicitly state they do not represent their body or the City of Sunnyvale, nor will they allow the inference that they do. G.8.c Packet Pg. 203 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 5 of 19 Councilmembers and board and commission members have the right to endorse candidates for all Council seats or other elected offices. It is inappropriate to mention or display endorsements during Council meetings, board/commission meetings, or other official City meetings. 14. Policy Role of Members. Members shall respect and adhere to the council-manager structure of Sunnyvale City government as outlined by the Sunnyvale City Charter. In this structure, the City Council determines the policies of the City with the advice, information and analysis provided by the public, boards and commissions, and City staff. Except as provided by the City Charter, members therefore shall not interfere with the administrative functions of the City or the professional duties of City staff; nor shall they impair the ability of staff to implement Council policy decisions. 15. Independence of boards and commissions. Because of the value of the independent advice of boards and commissions to the public decision-making process, members of Council shall refrain from using their position to unduly influence the deliberations or outcomes of board and commission proceedings. 16. Positive Work Place Environment. Members shall support the maintenance of a positive and constructive work place environment for City employees and for citizens and businesses dealing with the City. Members shall recognize their special role in dealings with City employees to in no way create the perception of inappropriate direction to staff. B. CONDUCT The Conduct section of the City’s Code of Ethics and Conduct is designed to describe the manner in which Councilmembers and board and commission members should treat one another, City staff, constituents, and others they come into contact with in representing the City of Sunnyvale. It reflects the work of a Council Policy and Protocol Subcommittee that was charged with defining more clearly the behavior, manners, and courtesies that are suitable for various occasions. The Subcommittee also considered a wide variety of policy changes and clarifications designed to make public meetings and the process of governance run more smoothly. The constant and consistent theme through all of the conduct guidelines is "respect." Councilmembers experience huge workloads and tremendous stress in making decisions that could impact thousands of lives. Despite these pressures, elected and appointed officials are called upon to exhibit appropriate behavior at all times. Demonstrating respect for each individual through words and actions is the touchstone that can help guide Councilmembers and board and commission members to do the right thing in even the most difficult situations. 1. Elected and Appointed Officials’ Conduct with One Another "In life, courtesy and self-possession, and in the arts, style, are the sensible impressions of the free mind, for both arise out of a deliberate shaping of all things and from never being swept away, whatever the emotion, into confusion or dullness." -- William Butler Yeats G.8.c Packet Pg. 204 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 6 of 19 Elected and appointed officials are composed of individuals with a wide variety of backgrounds, personalities, values, opinions, and goals. Despite this diversity, all have chosen to serve in public office in order to preserve and protect the present and the future of the community. In all cases, this common goal should be acknowledged even though individuals may "agree to disagree" on contentious issues. 1(a). In Public Meetings Use formal titles Elected and appointed officials should refer to one another formally during public meetings, such as Mayor, Vice Mayor, Chair, Commissioner or Councilmember followed by the individual’s last name. Practice civility and decorum in discussions and debate Difficult questions, tough challenges to a particular point of view, and criticism of ideas and information are legitimate elements of a free democracy in action. This does not allow, however, public officials to make belligerent, personal, impertinent, slanderous, threatening, abusive, or disparaging comments. No shouting or physical actions that could be construed as threatening will be tolerated. Honor the role of the chair in maintaining order It is the responsibility of the chair to keep the comments of members on track during public meetings. Members should honor efforts by the chair to focus discussion on current agenda items. If there is disagreement about the agenda or the chair’s actions, those objections should be voiced politely and with reason, following procedures outlined in parliamentary procedure. Avoid personal comments that could offend other members If a member is personally offended by the remarks of another member, the offended member should make notes of the actual words used and call for a "point of personal privilege" that challenges the other member to justify or apologize for the language used. The chair will maintain control of this discussion. Demonstrate effective problem-solving approaches Members have a public stage to show how individuals with disparate points of view can find common ground and seek a compromise that benefits the community as a whole. Outside of official board or commission meetings, individual board and commission members are not authorized to represent the City or their board or commission unless specifically designated by the Council or the board or commission to do so for a particular purpose. In private settings, board and commission members may communicate at any time and on any subject with individual members of the City Council, and may express to them individual viewpoints and opinions. In public, however, all members shall represent the official policies or positions of their board or commission, with the following exception. During a Council public hearing on any item addressed by the board or commission, any member may speak under standard time limits, but shall indicate whether their testimony represents an official position (majority opinion) or a minority opinion of the board/commission to which they belong. The chair shall represent the majority view of the G.8.c Packet Pg. 205 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 7 of 19 board or commission, but may report on any minority views as well, including his or her own. When an official board or commission position differs from staff’s recommendation on a particular policy issue, then at the Mayor’s discretion additional time may be provided to the chair of the board or commission (or his/her designee) to explain the position of the board/commission or to rebut statements made by staff or the public. If new information is brought to light during a public hearing which was not shared previously with the board or commission, the Mayor may allow the board or commission chair to respond. If the Council deems the new information sufficient to warrant additional study, then by majority vote Council may remand the issue back to the board or commission for further study prior to taking other action itself. Individual opinions and positions may be expressed by board and commission members regarding items that have not come before the particular board/commission to which they belong. When presenting their individual opinions and positions, members shall explicitly state they do not represent their body or the City of Sunnyvale, nor will they allow the inference that they do. Although a board or commission may disagree with the final decision the Council makes, the board or commission shall not act in any manner contrary to the established policy adopted by the Council. 1(b). In Private Encounters Continue respectful behavior in private The same level of respect and consideration of differing points of view that is deemed appropriate for public discussions should be maintained in private conversations. Be aware of the insecurity of written notes, voicemail messages, and E-mail Technology allows words written or said without much forethought to be distributed wide and far. Would you feel comfortable to have this note faxed to others? How would you feel if this voicemail message were played on a speaker phone in a full office? What would happen if this E -mail message were forwarded to others? Written notes, voicemail messages and e-mail should be treated as potentially "public" communication. Even private conversations can have a public presence Elected and appointed officials are always on display – their actions, mannerisms, and language are monitored by people around them that they may not know. Lunch table conversations will be eavesdropped upon, parking lot debates will be watched, and casual comments between individuals before and after public meetings noted. In private, board and commission members may communicate at any time and on any subject with the City Council, and may express to Council individual viewpoints and opinions. 2. Elected and Appointed Officials’ Conduct with City Staff "Never let a problem become an excuse." -- Robert Schuller G.8.c Packet Pg. 206 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 8 of 19 Governance of a City relies on the cooperative efforts of elected officials, who set policy, appointed officials who advise the elected, and City staff who implements and administers the Council’s policies. Therefore, every effort should be made to be cooperative and show mutual respect for the contributions made by each individual for the good of the community. Treat all staff as professionals Clear, honest communication that respects the abilities, experience, and dignity of each individual is expected. Poor behavior towards staff is not acceptable. Member questions/inquiries to City staff 1. General. Council and board/commission communications with City staff should be limited to normal City business hours unless the circumstances warrant otherwise. Responses to Council questions posed outside of normal business hours should be expected no earlier than the next business day. 2. Routine Requests for Information and Inquiries. Members may contact staff directly for information made readily available to the general public on a regular basis (e.g., “What are the library’s hours of operation?” or “How does one reserve a tee time at the golf course?”). Under these circumstances staff shall treat the member no differently than they would the general public, and the member shall not use their elected status to secure preferential treatment. The city manager does not need to be advised of such contacts. 3. Non-Routine Requests for Readily Available Information. Members may also contact staff directly for easily retrievable information not routinely requested by the general public so long as it does not require staff to discuss the issue or express an opinion (e.g., “How many traffic lights are there in the City?” or “Under what circumstances does the City lower its flags to half mast?”). 4. Non-Routine Requests Requiring Special Effort. Any member request or inquiry that requires staff to compile information that is not readily available or easily retrievable and/or that requests staff to express an opinion (legal or otherwise) must be directed to the city manager, or to the city attorney, as appropriate (e.g., “How many Study Issues completed over the past five years have required 500 or more hours of staff time?”, or “What is the logic behind the City’s sign ordinances affecting businesses along El Camino Real?”). The city manager (or city attorney as appropriate) shall be responsible for distributing such requests to his/her staff for follow-up. Responses to such requests shall be copied to all Councilmembers (if originating from a Councilmember), relevant board or commission members (if originating from a board or commission member), the city manager, the city attorney as appropriate and affected department directors. 5. Meeting Requests. Any member request for a meeting with staff must be directed to the city manager or city attorney, as appropriate. 6. Public Safety Restrictions. Under certain circumstances, requests for information regarding operations or personnel of the Department of Public Safety may be legally restricted. Applicable statutes include: The Peace Officers’ Procedural Bill of Rights (California Government Code G.8.c Packet Pg. 207 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 9 of 19 Section 3300, et seq.), Confidentiality of Peace Officer Records (California Penal Code Section 832.5-7), and a number of exceptions to the California Public Records Act, defined in Government Code Section 6254. Providing information in response to such requests could violate the law, and might also violate due process rights that have been defined for peace officers in the State of California. Accordingly, it shall be the policy of the City of Sunnyvale to strictly comply with all applicable legal authorities governing the release of Department of Public Safety information and records. Do not disrupt City staff from their jobs Elected and appointed officials should not disrupt City staff while they are in meetings, on the phone, or engrossed in performing their job functions in order to have their individual needs met. Do not attend City staff meetings unless requested by staff – even if the elected or appointed official does not say anything, his or her presence implies support, shows partiality, intimidates staff, and hampers staff’s ability to do their job objectively. Never publicly criticize an individual employee Elected and appointed officials should never express concerns about the performance of a City employee in public, to the employee directly, or to the employee’s manager. Comm ents about staff performance should only be made to the city manager through private correspondence or conversation. Comments about staff in the office of the city attorney should be made directly to the city attorney. Appointed officials should make their comments regarding staff to the city manager or the Mayor. Do not get involved in administrative functions Elected and appointed officials must not attempt to influence City staff on the making of appointments, awarding of contracts, selecting of consultants, processing of development applications, or granting of City licenses and permits. [See Code of Ethics] The Sunnyvale City Charter, Section 807, also contains information about the prohibition of Council interference in administrative functions. Check with City staff on correspondence before taking action Before sending correspondence, Councilmembers should check with City staff to see if an official City response has already been sent or is in progress. Board and commission members shall not send correspondence except as authorized under the City’s policies governing volunteers. (Council Policy 7.2.19, Boards and Commissions.) Limit requests for staff support Routine secretarial support will be provided to all Councilmembers. The Council Executive Assistant opens all mail for Councilmembers, unless a Councilmember requests other arrangements. Mail addressed to the Mayor is reviewed first by the city manager who notes suggested action and/or follow-up items. Requests for additional staff support – even in high priority or emergency situations – should be made to the city manager who is responsible for allocating City resources in order to maintain a professional, well-run City government. G.8.c Packet Pg. 208 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 10 of 19 Do not solicit political support from staff Elected and appointed officials should not solicit any type of political support (financial contributions, display of posters or lawn signs, name on support list, etc.) from City staff. City staff may, as private citizens with constitutional rights, support political candidates but all such activities must be done away from the workplace. 3. Elected and Appointed Officials’ Conduct with the Public "If a man be gracious and courteous to strangers, it shows he is a citizen of the world, and that his heart is no island cut off from other lands, but a continent that joins to them." -- Francis Bacon 3(a). In Public Meetings Making the public feel welcome is an important part of the democratic process. No signs of partiality, prejudice or disrespect should be evident on the part of individual members toward an individual participating in a public forum. Every effort should be made to be fair and impartial in listening to public testimony. Be welcoming to speakers and treat them with care and gentleness . While questions of clarification may be asked, the official’s primary role during public testimony is to listen. "I give many public presentations so standing up in front of a group and using a microphone is not new to me. But I found that speaking in front of Council was an entirely different experience. I was incredibly nervous and my voice was shaking. I think the reason was because the issue was so personal to me. The Council was going to take a vote that would affect my family’s daily life and my home. I was feeling a lot of emotion. The way that Council treats people during public hearings can do a lot to make them relax or to push their emotions to a higher level of intensity." Be fair and equitable in allocating public hearing time to individual speakers. "The first thing the Mayor said to me was to be brief because the meeting was running late and the Council was eager to go home. That shouldn’t be my problem. I’m sorry my item was at the end of the agenda and that there were a lot of speakers, but it is critically important to me and I should be allowed to say what I have to say and believe that the Council is listening to me." The chair will determine and announce limits on speakers at the start of the public hearing process. Questions should not be asked for the express purpose of allowing one speaker to evade the time limit imposed on all others (e.g., “Was there something else you wanted to say?”). Generally, each speaker will be allocated three minutes with applicants and appellants or their designated representatives allowed ten. If many speakers are anticipated, the chair may shorten the time limit and/or ask speakers to limit themselves to new information and points of view not already covered by previous speakers. No speaker will be turned away unless he or she exhibits inappropriate behavior. Each speaker may only speak once during the public hearing unless the chair requests additional clarification later in the process. After the close of the public hearing, no more public testimony will be accepted unless the chair reopens the public hearing for a limited and specific purpose. G.8.c Packet Pg. 209 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 11 of 19 Give the appearance of active listening It is disconcerting to speakers to have members not look at them when they are speaking. It is fine to look down at documents or to make notes, but reading for a long period of time or gazing around the room gives the appearance of disinterest. Be aware of facial expressions, especially those that could be interpreted as "smirking," disbelief, anger or boredom. Maintain an open mind Members of the public deserve an opportunity to influence the thinking of elected and appointed officials. To express an opinion or pass judgment prior to the close of a public hearing casts doubt on a member’s ability to conduct a fair review of the issue. This is particularly important when officials are serving in a quasi-judicial capacity. Ask for clarification, but avoid debate and argument with the public Only the chair – not individual members – can interrupt a speaker during a presentation. However, a member can ask the chair for a point of order if the speaker is off the topic or exhibiting behavior or language the member finds disturbing. If speakers become flustered or defensive by questions, it is the responsibility of the chair to calm and focus the speaker and to maintain the order and decorum of the meeting. Questions by members to the public testifying should seek to clarify or expand information. It is never appropriate to belligerently challenge or belittle the speaker. Members’ personal opinions or inclinations about upcoming votes should not be revealed until after the public hearing is closed. No personal attacks of any kind, under any circumstance Members should be aware that their body language and tone of voice, as well as the words they use, can appear to be intimidating or aggressive. Follow parliamentary procedure in conducting public meetings The city attorney serves as advisory parliamentarian for the City and is available to answer questions or interpret situations according to parliamentary procedures. The chair, subject to the appeal of the full Council or board/commission makes final rulings on parliamentary procedure. 3(b). In Unofficial Settings Make no promises on behalf of the Council, board/commission or City Members will frequently be asked to explain a Council or board/commission action or to give their opinion about an issue as they meet and talk with constituents in the community. It is appropriate to give a brief overview of City policy and to refer to City staff for further information. It is inappropriate to overtly or implicitly promise Council or board/commission action, or to promise City staff will do something specific (fix a pothole, remove a library book, plant new flowers in the median, etc.). Make no personal comments about other members It is acceptable to publicly disagree about an issue, but it is unacceptable to make derogatory comments about other members, their opinions and actions. G.8.c Packet Pg. 210 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 12 of 19 Remember that despite its impressive population figures, Sunnyvale is a small to wn at heart Members are constantly being observed by the community every day that they serve in office. Their behaviors and comments serve as models for proper deportment in the City of Sunnyvale. Honesty and respect for the dignity of each individual should be reflected in every word and action taken by members, 24 hours a day, seven days a week. It is a serious and continuous responsibility. 4. Council Conduct with Other Public Agencies "Always do right. This will gratify some people and astonish the rest." -- Mark Twain Be clear about representing the City or personal interests When representing the City, the Councilmember must support and advocate the official City position on an issue, not a personal viewpoint. Outside of official board or commission meetings, board and commission members are not authorized to represent the City or their board or commission unless specifically designated by the Council or the board or commission to do so for a particular purpose. When representing another organization whose position is different from the City, the Councilmember should withdraw from voting on the issue if it significantly impacts or is detrimental to the City’s interest. Councilmembers should be clear about which organizations they represent and inform the Mayor and Council of their involvement. Correspondence also should be equally clear about representation City letterhead may be used when the Councilmember is representing the City and the City’s official position. A copy of official correspondence should be given to the Council Executive Assistant to be filed in the Council Office as part of the permanent public record. City letterhead should not be used for non-City business nor for correspondence representing a dissenting point of view from an official Council position. 5. Council Conduct with Boards and Commissions "We rarely find that people have good sense unless they agree with us." --Francois, Duc de La Rochefoucauld The City has established several boards and commissions as a means of gathering more community input. Citizens who serve on boards and commissions become more involved in government and serve as advisors to the City Council. They are a valuable resource to the City’s leadership and should be treated with appreciation and respect. If attending a board or commission meeting, be careful to only express personal opinions Councilmembers may attend any board or commission meeting, which are always open to any member of the public. However, they should be sensitive to the way their participation especially if it is on behalf of an individual, business or developer -- could be viewed as unfairly affecting the process. Any public comments by a Councilmember at a board or commission meeting should be G.8.c Packet Pg. 211 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 13 of 19 clearly made as individual opinion and not a representation of the feelings of the entire City Council. Limit contact with board and commission members to questions of clarification It is inappropriate for a Councilmember to contact a board or commission member to lobby on behalf of an individual, business, or developer, and vice versa. It is acceptable for Councilmembers to contact board or commission members in order to clarify a position taken by the board or commission. Remember that boards and commissions serve the community, not individual Councilmembers The City Council appoints individuals to serve on boards and commissions, and it is the responsibility of boards and commissions to follow policy established by the Council. But board and commission members do not report to individual Councilmembers, nor should Councilmembers feel they have the power or right to threaten board and commission members with removal if they disagree about an issue. Appointment and re-appointment to a board or commission should be based on such criteria as expertise, ability to work with staff and the public, and commitment to fulfilling official duties. A board or commission appointment should not be used as a political "reward." Be respectful of diverse opinions A primary role of boards and commissions is to represent many points of view in the community and to provide the Council with advice based on a full spectrum of concerns and perspectives. Councilmembers may have a closer working relationship with some individuals serving on boards and commissions, but must be fair and respectful of all citizens serving on boards and commissions. Keep political support away from public forums Board and commission members may offer political support to a Councilmember, but not in a public forum while conducting official duties. Conversely, Councilmembers may support board and commission members who are running for office, but not in an official forum in their capacity as a Councilmember. 6. Conduct with the Media "Keep them well fed and never let them know that all you’ve got is a chair and a whip." -- Lion Tamer School Board and commission members are not authorized to represent the City outside of official board/commission meetings unless specifically authorized to do so. Councilmembers are frequently contacted by the media for background and quotes. The best advice for dealing with the media is to never go "off the record" Most members of the media represent the highest levels of journalistic integrity and ethics, and can be trusted to keep their word. But one bad experience can be catastrophic. Words that are not said cannot be quoted. G.8.c Packet Pg. 212 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 14 of 19 The Mayor is the official spokesperson for the City on City positions. The Mayor is the designated representative of the Council to present and speak on the official City position. If an individual Councilmember is contacted by the media, the Councilmember should be clear about whether their comments represent the official City position or a personal viewpoint. Choose words carefully and cautiously Comments taken out of context can cause problems. Be especially cautious about humor, sardonic asides, sarcasm, or word play. It is never appropriate to use personal slurs or swear words when talking with the media. C. SANCTIONS "You cannot have a proud and chivalrous spirit if your conduct is mean and paltry; for whatever a man’s actions are, such must be his spirit." -- Demosthenes Model of Excellence City Councilmembers, Board and Commission Members, and Council appointees who do not sign the Model of Excellence (Appendix A) shall be ineligible for intergovernmental assignments or Council subcommittees. Ethics Training for Local Officials City Councilmembers, Board and Commission Members, and Council appointees who are out of compliance with State- or City-mandated requirements for ethics training shall not represent the City on intergovernmental assignments or Council sub-committees, and may be subject to sanctions. Public Disruption Members of the public who do not follow proper conduct after a warning in a public hearing may be barred from further testimony at that meeting or removed from the Council Chambers. Inappropriate Staff Behavior Councilmembers should refer to the city manager any City staff or to the city attorney any City Attorney’s staff who do not follow proper conduct in their dealings with Councilmembers, other City staff, or the public. These employees may be disciplined in accordance with standard City procedures for such actions. (Please refer to the section on Council Conduct with City Staff for more details on interaction with Staff.) Councilmembers Behavior and Conduct Compliance and Enforcement. The Sunnyvale Code of Ethics and Conduct expresses standards of ethical conduct expected for members of the Sunnyvale City Council, boards and commissions . Members themselves have the primary responsibility to assure that ethical standards are understood and met, and that the public can continue to have full confidence in the integrity of government. The chairs of boards and commissions and the Mayor and Council have the additional responsibility to G.8.c Packet Pg. 213 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 15 of 19 intervene when actions of members that appear to be in violation of the Code of Ethics and Conduct are brought to their attention. City Councilmembers who intentionally and repeatedly do not follow proper condu ct may be reprimanded or formally censured by the Council, lose seniority or committee assignments (both within the City of Sunnyvale or with inter-government agencies) or have official travel restricted. Serious infractions of the Code of Ethics or Code of Conduct could lead to other sanctions as deemed appropriate by Council. Councilmembers should point out to the offending Councilmember infractions of the Code of Ethics and Conduct. If the offenses continue, then the matter should be referred to the Mayor in private. If the Mayor is the individual whose actions are being challenged, then the matter should be referred to the Vice Mayor. It is the responsibility of the Mayor to initiate action if a Councilmember’s behavior may warrant sanction. If no action is taken by the Mayor, the alleged violation(s) can be brought up with the full Council in a public meeting. Board and Commission Members Behavior and Conduct Counseling, verbal reprimands and written warnings may be administered by the Mayor to boar d and commission members failing to comply with City policy. These lower levels of sanctions shall be kept private to the degree allowed by law. Copies of all written reprimands administered by the Mayor shall be distributed in memo format to the chair of the respective board or commission, the city clerk, the city attorney, the city manager, and the City Council. Written reprimands administered by the Mayor shall not be included in packets for public meetings and shall not be publicized except as required under the Public Records Act. The City Council may impose sanctions on board and commission members whose conduct does not comply with the City’s policies, up to and including removal from office. Any form of discipline imposed by Council shall be determined by a majority vote of at least a quorum of the Council at a noticed public meeting and such action shall be preceded by a Report to Council with supporting documentation. The Report to Council shall be distributed in accordance with normal procedures, including hard copies to numerous public facilities and posting online. Any Report to Council addressing alleged misconduct by a board or commission member shall be routed through the Office of the city attorney for review of whether any information is e xempt from disclosure (subject to redaction) based on privacy interests authorized under the Public Records Act. When deemed warranted, the Mayor or majority of Council may call for an investigation of board or commission member conduct. Should the city manager or city attorney believe an investigation is warranted, they shall confer with the Mayor or Council. The Mayor or Council shall ask the city manager and/or the city attorney to investigate the allegation and report the findings. The results of any such investigation shall be provided to the full Council in the form of a Report to Council, and shall be placed on the agenda of a noticed public meeting as “Information Only”. Any such report shall be made public and distributed in accordance with normal procedures (i.e., hard copies to numerous public locations and posted online). Any report to Council addressing the G.8.c Packet Pg. 214 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 16 of 19 investigation of board and commission members shall be routed through the Office of the City Attorney for review of whether any information is exempt from disclosure (subject to redaction) based on privacy interests authorized under the Public Records Act. It shall be the Mayor and/or the Council’s responsibility to determine the next appropriate action. Any such action taken by Council (with the exception of “take no further action”) shall be conducted at a noticed public hearing. These actions include, but are not limited to: discussing and counseling the individual on the violations; placing the matter on a future public hearing agenda to consider sanctions; forming a Council ad hoc subcommittee to review the allegation, the investigation and its findings, as well as to recommend sanction options for Council consideration. Under the City Charter, the City Council also may remove members of boards and commissions from office. A violation of this Code of Ethics and Conduct shall not be considered a basis for challenging the validity of a Council, board or commission decision. D. PRINCIPLES OF PROPER CONDUCT Proper conduct IS …  Keeping promises  Being dependable  Building a solid reputation  Participating and being available  Demonstrating patience  Showing empathy  Holding onto ethical principles under stress  Listening attentively  Studying thoroughly  Keeping integrity intact  Overcoming discouragement  Going above and beyond, time and time again  Modeling a professional manner Proper conduct IS NOT …  Showing antagonism or hostility  Deliberately lying or misleading  Speaking recklessly  Spreading rumors  Stirring up bad feelings, divisiveness  Acting in a self-righteous manner It all comes down to respect Respect for one another as individuals … respect for the validity of different opinions … respect for the democratic process … respect for the community that we serve. G.8.c Packet Pg. 215 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 17 of 19 E. CHECKLIST FOR MONITORING CONDUCT o Will my decision/statement/action violate the trust, rights or good will of others? o What are my interior motives and the spirit behind my actions? o If I have to justify my conduct in public tomorrow, will I do so with pride or shame? o How would my conduct be evaluated by people whose integrity and character I respect? o Even if my conduct is not illegal or unethical, is it done at someone else’s painful expense? Will it destroy their trust in me? Will it harm their reputation? o Is my conduct fair? Just? Morally right? o If I were on the receiving end of my conduct, would I approve and agree, or would I take offense? o Does my conduct give others reason to trust or distrust me? o Am I willing to take an ethical stand when it is called for? Am I willing to make my ethical beliefs public in a way that makes it clear what I stand for? o Do I exhibit the same conduct in my private life as I do in my public life? o Can I take legitimate pride in the way I conduct myself and the example I set? o Do I listen and understand the views of others? o Do I question and confront different points of view in a constructive manner? o Do I work to resolve differences and come to mutual agreement? o Do I support others and show respect for their ideas? o Will my conduct cause public embarrassment to someone else? F. GLOSSARY OF TERMS attitude The manner in which one shows one’s dispositions, opinions, and feelings behavior External appearance or action; manner of behaving; carriage of oneself civility Politeness, consideration, courtesy conduct The way one acts; personal behavior courtesy Politeness connected with kindness decorum Suitable; proper; good taste in behavior manners A way of acting; a style, method, or form; the way in which thing are done point of order An interruption of a meeting to question whether rules or bylaws are being broken, such as the speaker has strayed from the motion currently under consideration point of personal privilege A challenge to a speaker to defend or apologize for comments that a fellow member considers offensive propriety Conforming to acceptable standards of behavior protocol The courtesies that are established as proper and correct respect The act of noticing with attention; holding in esteem; courteous regard G. IMPLEMENTATION As an expression of the standards of conduct for members expected by the City, the Sunnyvale Code of Ethics and Conduct is intended to be self-enforcing. It therefore becomes most effective when members are thoroughly familiar with it and embrace its provisions. For this reason, this document shall be included in the regular orientations for candidates for City Council, applicants to G.8.c Packet Pg. 216 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 18 of 19 board and commissions, and newly elected and appointed officials. Members entering office shall sign a statement affirming they read and understood the City of Sunnyvale Code of Ethics and Conduct. In addition, the Code of Ethics and Conduct shall be annually reviewed by the City Council, boards and commissions, and the City Council shall consider recommendatio ns from boards and commissions and update it as necessary. (Adopted: RTC 08-113 (4/8/08), Update: RTC 09-036 (2/3/09); Updated: RTC 09-047 (2/24/09); Approved with no changes: RTC 10-078 (3/23/10); Approved with no changes: RTC 11-058 (3/29/11); Approved with no changes: RTC 12-067 (3/20/2012); Updated: RTC 13-060 (3/19/13); Approved with no changes: RTC 14-0211 (3/18/14); RTC 15-0050 (3/24/15); RTC 16-0360 (4/5/16); RTC 17-0161 (3/28/17); RTC 18-0036 (1/9/18) Lead Department: Office of the City Manager G.8.c Packet Pg. 217 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) For ease of reference in the Code of Ethics and Conduct, the term “member” refers to any member of the Sunnyvale City Council or the City’s boards and commissions established by the City Charter, City Ordinance or Council policy. Page 19 of 19 APPENDIX A - Model of Excellence Member Statement MODEL OF EXCELLENCE Sunnyvale City Council, Boards and Commissions MEMBER STATEMENT As a member of the Sunnyvale City Council or of a Sunnyvale board or commission, I agree to uphold the Code of Ethics and Conduct for Elected and Appointed Officials adopted by the City and conduct myself by the following model of excellence. I will:  Recognize the worth of individual members and appreciate their individual talents, perspectives and contributions;  Help create an atmosphere of respect and civility where individual members, City staff and the public are free to express their ideas and work to their full potential;  Conduct my personal and public affairs with honesty, integrity, fairness and respect for others;  Respect the dignity and privacy of individuals and organizations;  Keep the common good as my highest purpose and focus on achieving constructive solutions for the public benefit;  Avoid and discourage conduct which is divisive or harmful to the best interests of Sunnyvale;  Treat all people with whom I come in contact in the way I wish to be treated; I affirm that I have read and understood the City of Sunnyvale Code of Ethics and Conduct for Elected and Appointed Officials. Signature Date City Council Seat #____ G.8.c Packet Pg. 218 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) ATTACHMENT C-6 Institute for Local Government: Public Service Ethics/Transparency Law ATTACHMENT C-6 Institute for Local Government: Public Service Ethics/Transparency Law G.8.c Packet Pg. 219 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) ______________________________________________________________________ INSTITUTE FOR LOCAL GOVERNMENT INFORMATION Public Service Ethics/ Transparency Law G.8.c Packet Pg. 220 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) 7KLVSDJHOHIWLQWHQWLRQDOO\EODQN G.8.c Packet Pg. 221 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Understanding the Basics of G.8.c Packet Pg. 222 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) The Institute’s current program areas include: » Sustainable Communities » Public Engagement » Ethics and Transparency » Local Government Basics » Collaboration and Partnerships The Institute is grateful to the following firms for their commitment to public service ethics: Aleshire & Wynder LLP Best Best & Krieger LLP Burke Williams & Sorensen, LLP Hanson Bridgett Liebert Cassidy Whitmore Meyers Nave Riback Silver & Wilson, PLC Murphy Austin Adams Schoenfeld LLP Richards Watson & Gershon Renne Sloan Holtzman Sakai LLP Special thanks to the following individuals whose time and effort contributed to this publication: Jeff Ballinger, Partner, Best Best and & Krieger Ruben Duran, Partner, Best Best & Krieger Martin Gonzalez, Executive Director, Institute for Local Government Amit Katzir, Associate, Liebert Cassidy Whitmore Michael Martello, Institute for Local Government Volunteer Colin Roberts, JD, Institute for Local Government Alysha Stein-Manes, Associate, Liebert Cassidy Whitmore Scott Tiedemann, Managing Partner, Liebert Cassidy Whitmore Gary Winuk, Managing Attorney, Kaufman Legal Group All final decisions about the content, tone and formatting of this publication were made by the Institute for Local Government. Understanding the Basics of Public Service Ethics © 2016 by the Institute for Local Government 1400 K Street, Suite 205 Sacramento, CA 95814 (916) 658-8208 www.ca-ilg.org The Institute for Local Government is the nonprofit research affiliate of the League of California Cities, the California State Association of Counties, and the California Special Districts Association. Its mission is to promote good government at the local level. G.8.c Packet Pg. 223 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Understanding the Basics of Public Service Ethics Laws CONTENTS Chapter 1: Introduction 1 What Is an Ethics Law? ....................................................................................................................................................1 Understanding California Ethics Laws .........................................................................................................................2 The Key Laws to Know .....................................................................................................................................................3 Laws as Minimum Standards .........................................................................................................................................3 The Limits of this Information ........................................................................................................................................4 Endnotes ............................................................................................................................................................................4 G.8.c Packet Pg. 224 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Chapter 2: Personal Financial Gain Laws 5 Receiving Special Favors or Money for Official Actions ...........................................................................................8 Basic Rules .................................................................................................................................................................8 Penalties .....................................................................................................................................................................8 California Law Penalties ...................................................................................................................................8 Federal Penalties ......................................................................................................................................................9 Disqualification Based on Financial Interests Under the Political Reform Act ...................................................11 Basic Rules ................................................................................................................................................................11 Political Reform Act – The Four Step Conflict of Interest Test .............................................................................. 13 Identifying Economic Issues .........................................................................................................................................15 What Kinds of Economic Interests Are a Concern? .......................................................................................15 Real Property Interests .........................................................................................................................................16 The “Public Generally” Analysis .........................................................................................................................17 What Happens if an Official is Disqualified? ...................................................................................................18 General Rule .....................................................................................................................................................18 Effect of Disqualification ...............................................................................................................................18 Penalties ...................................................................................................................................................................19 Political Reform Act Penalties.......................................................................................................................19 Effect on Agency and Those Affected by ...................................................................................................19 Agency’s Decision ...........................................................................................................................................19 G.8.c Packet Pg. 225 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Interests in Agency Contracts Barred .......................................................................................................................20 Basic Rules ..............................................................................................................................................................20 FPPC Jurisdiction over Section 1090 Questions .............................................................................................21 Exceptions to Rules ................................................................................................................................................22 Non-Interest Exception ..................................................................................................................................22 Remote Interest Exception ...........................................................................................................................22 Limited Rule of Necessity .....................................................................................................................................23 Penalties ...................................................................................................................................................................23 Criminal Penalties ...........................................................................................................................................23 Effect on Contract ...........................................................................................................................................23 Employment-Related Restrictions ...............................................................................................................................24 Basic Rules ...............................................................................................................................................................24 Penalties ...................................................................................................................................................................24 Endnotes and Additional Information ........................................................................................................................25 G.8.c Packet Pg. 226 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Chapter 3: Perk Issues, Including Compensation, 27 Use of Public Resources, and Gift Laws Compensation Issues .................................................................................................................................................... 29 Basic Rules .............................................................................................................................................................. 29 Counties .................................................................................................................................................................. 29 Special Districts .................................................................................................................................................... 29 Cities ......................................................................................................................................................................... 31 Charter Cities ................................................................................................................................................... 31 General Law Cities .......................................................................................................................................... 31 Local Agency Chief Executives and Staff .........................................................................................................32 Special Issue: Speaking and Other Fees ............................................................................................................33 Basic No-Honoraria Rule ..............................................................................................................................33 Exceptions to No-Honoraria Rules ..............................................................................................................33 Penalties ...................................................................................................................................................................33 Reimbursement of Expenses ....................................................................................................................................... 34 Basic Rules .............................................................................................................................................................. 34 When May Expenses Be Reimbursed? ...................................................................................................... 34 Process Requirements ................................................................................................................................... 34 Amounts ........................................................................................................................................................... 34 Penalties ...................................................................................................................................................................35 California Law Penalties ................................................................................................................................35 Federal Law Penalties .....................................................................................................................................35 G.8.c Packet Pg. 227 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Restrictions on Use of Public Resources ....................................................................................................................36 Basic Rules ...............................................................................................................................................................36 No Personal or Political Use of Public Resources .....................................................................................36 No Use of Public Resources on Ballot Measure Related Activities .......................................................36 Prohibition Against Mass Mailings at Public Expense ............................................................................36 Penalties ...................................................................................................................................................................37 Gifts to Public Officials ..................................................................................................................................................38 Basic Rules ...............................................................................................................................................................38 Questions for Public Officials to Ask About Nice Gestures .........................................................................38 Exceptions/Gifts Subject to Special Rules ........................................................................................................39 Special Rules Relating to Who Receives the Gift ......................................................................................39 Gifts Subject to Special Valuation Rules ....................................................................................................39 Special Rules for Certain Sources of Gifts..................................................................................................39 Gestures that Are Part of An Exchange ......................................................................................................39 Additional Special Rules Based on Type of Gift ........................................................................................39 Gifts can be: ......................................................................................................................................................39 What to Do About Unwanted Gifts? ................................................................................................................40 Penalties ...................................................................................................................................................................41 California Law Penalties .................................................................................................................................41 Federal Law Penalties .....................................................................................................................................41 Income Tax Violations ...........................................................................................................................................41 Use of Campaign Funds ................................................................................................................................................42 Basic Rule ................................................................................................................................................................42 Penalties ..................................................................................................................................................................42 Endnotes and Additional Information ....................................................................................................................... 43 G.8.c Packet Pg. 228 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Chapter 4: Transparency Laws 49 Economic Interest Disclosure ...................................................................................................................................... 51 Basic Rules ...............................................................................................................................................................51 Penalties ...................................................................................................................................................................53 Campaign Contribution Disclosure ...........................................................................................................................54 Basic Rules ..............................................................................................................................................................54 Penalties ...................................................................................................................................................................55 Charitable Fundraising Disclosure ..............................................................................................................................56 Basic Rules ...............................................................................................................................................................56 Penalties ...................................................................................................................................................................57 Penalties for Extortion under State and Federal Law ...............................................................................57 Honest Services Fraud ....................................................................................................................................57 The Public’s Right to Access Records ........................................................................................................................ 58 Basic Rules .............................................................................................................................................................. 58 Penalties ...................................................................................................................................................................59 Conducting the Public’s Business in Public ..............................................................................................................60 Basic Rules ..............................................................................................................................................................60 Good Ethics Equals Good Politics .......................................................................................................................61 Typical Closed Session Issues ............................................................................................................................ 62 Penalties ...................................................................................................................................................................63 Nullification of Decision ................................................................................................................................63 Criminal Sanctions ..........................................................................................................................................63 Other Consequences ......................................................................................................................................63 G.8.c Packet Pg. 229 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) The Public’s Right to Participate in Meetings ..........................................................................................................64 Basic Rules ..............................................................................................................................................................64 Posting and Following the Agenda ..............................................................................................................64 The Public’s Right to Materials Not Included in the Agenda Packet ...................................................64 Special Issues .........................................................................................................................................................64 Electronic Recording of Meetings is Allowed ...........................................................................................64 Sign-In Must Be Voluntary............................................................................................................................64 The Public’s Right to be Heard.....................................................................................................................64 Penalties ..................................................................................................................................................................66 Nullification of Decision ...............................................................................................................................66 Criminal Sanctions .........................................................................................................................................66 Other Measures ..............................................................................................................................................66 Potential Civil Rights Violations ..................................................................................................................66 Endnotes and Additional Information ........................................................................................................................67 G.8.c Packet Pg. 230 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Chapter 5: Fair Process Laws and Merit-Based Decision-Making 74 The Right to Fair and Unbiased Decision-Makers ...................................................................................................74 Basic Rules ...............................................................................................................................................................74 Effect of Violations .........................................................................................................................................................75 Effect on Decision ..................................................................................................................................................75 Due Process Violations .........................................................................................................................................75 Vote-Trading ....................................................................................................................................................................75 Basic Rules ...............................................................................................................................................................75 Penalties ...................................................................................................................................................................76 Personal Loans .................................................................................................................................................................76 Basic Rules ...............................................................................................................................................................76 Penalties ...................................................................................................................................................................76 Decisions May Not Benefit Family ..............................................................................................................................77 Basic Rules ...............................................................................................................................................................77 Penalties ...................................................................................................................................................................77 Restrictions and Disqualification Requirements Relating to Campaign Contributions ....................................79 Basic Rules ................................................................................................................................................................... Affected Officials ...........................................................................................................................................80 Extortion under California and Federal Law ..............................................................................................81 Kinds of Proceedings Affected .....................................................................................................................81 Actions That Must Be Taken .........................................................................................................................81 Penalties .................................................................................................................................................................. 82 G.8.c Packet Pg. 231 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Agency Staff and Political Activities ...........................................................................................................................83 Basic Rules ...............................................................................................................................................................83 Employment Decisions, Soliciting Support and Campaign Contributions ..........................................83 Engaging in Political Activities During Work Hours or While in Uniform ...........................................83 Penalties ...................................................................................................................................................................83 Holding Multiple Public Offices ...................................................................................................................................83 Basic Rules ...............................................................................................................................................................83 Special Issues .........................................................................................................................................................84 Employees Who Run for the Governing Board of Their Public Agency Employers ..........................84 Individual Agency Guidelines ......................................................................................................................84 Penalties ..................................................................................................................................................................84 Competitive Bidding Processes for Public Contracts ............................................................................................. 85 Basic Rules .............................................................................................................................................................. 85 Exceptions .............................................................................................................................................................. 85 Emergency ....................................................................................................................................................... 85 Professional Services ..................................................................................................................................... 85 Special Services .............................................................................................................................................. 85 Design-Build ....................................................................................................................................................86 Penalties ..................................................................................................................................................................86 Whistle-Blowing Protections........................................................................................................................................87 Basic Rules ...............................................................................................................................................................87 Penalties ...................................................................................................................................................................87 Endnotes and Additional Information .......................................................................................................................88 G.8.c Packet Pg. 232 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Institute for Local Government | 1 What Is an Ethics Law? The notion that one should enter into public service to benefit the public and not one’s own personal financial interests is almost axiomatic in American politics. News coverage of elected and appointed officials who break either the written or unwritten rules (or both) against self-interested actions in their official capacities dominate at every level of public discourse, from cable and national network news to the neighborhood newsletter and local internet blog. Ethics laws are designed to preserve the public’s trust in its public institutions and those who serve in them by setting a framework to guide conduct and behavior.1 This guide discusses several types of ethics laws and principles and their important role in public service. For more information on these principles, see www.ca-ilg.org/ethics. CHAPTER 1: Introduction G.8.c Packet Pg. 233 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) 2 | Understanding the Basics of Public Service Ethics Laws | INTRODUCTION TYPES OF ETHICS LAWS Prohibitions Many of these ethics laws are prohibitions: they forbid certain actions that would undermine the public’s trust that decisions are being made to benefit the public’s interests (as opposed to the personal or political interests of the decision-maker). Making decisions in the public’s interest is also a key responsibility of public service.2 Prohibitions deter betrayals of the public’s trust by creating penalties for such betrayals. Laws against misusing public resources are a form of prohibitory law, as are laws that prevent a decision-maker from being involved in a decision if the decision-maker has a real or perceived conflict of interest. Laws against bribery or other forms of “pay to play” are another important ethics law prohibition. Transparency Requirements Other ethics laws simply require transparency: they provide the public and the media with information on how the public’s business is being conducted, who is receiving campaign contributions and gifts from whom, and what kinds of financial interests a public official has. With transparency laws, the public judges whether a public official or group of public officials is acting in a trustworthy fashion—typically as part of the elections process. Transparency laws also encourage trustworthy behavior by reminding public officials that their actions will likely be scrutinized and judged. Fairness Other ethics laws require that public agency decision-making processes meet minimum standards of fairness.3 Understanding California Ethics Laws California has a complex set of ethics laws to guide local officials in their service to their communities. How does the well-intentioned local official keep track of them all? Keeping four core principles in mind helps: » Public officials may not use their offices for personal financial gain. » Holding public office does not entitle one to personal advantages or perks. » Transparency promotes public trust and confidence. » Merit-based decision-making based on fair processes produces the best results for the public. Each chapter of this guide is organized around one of these four principles and will discuss a variety of specific topics and penalties associated with violation of the laws. » Chapter 2: Personal Financial Gain Laws. This chapter covers the prohibitions against receiving favors or money for official actions, stepping aside from the decision-making process when there is an economic interest in the outcome, and restrictions on employment in certain capacities after leaving public office. » Chapter 3: Gifts and Other Perks. This chapter focuses on laws and regulations related to compensation, reimbursement of expenses, restrictions on the use of public resources, gifts to public officials, and the use of campaign funds. G.8.c Packet Pg. 234 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Institute for Local Government | 3 » Chapter 4: Transparency Laws. This chapter focuses on various disclosure requirements, including campaign contributions, economic interests, and charitable fundraising. Other topics include conducting public business in a public manner, the public’s right to participate in meetings, and the right to access public records. » Chapter 5: Fair Processes and Merit-Based Decision- Making. This chapter focuses on prohibitions against vote-trading, restrictions on personal loans, and disqualifications based on the receipt of campaign contributions and benefits to the official’s family. It also covers the competitive bidding process for public contracts, bias, separating agency staff from politics, and prohibitions on holding multiple offices. The chapter concludes with a discussion of the whistleblower protections available to protect public employees from retaliation for reporting unlawful behavior. A key goal of this guide is to alert local officials on when to ask for legal advice on how ethics laws apply in a particular situation. The Key Laws to Know While there are innumerable statutes, regulations, policies and court decisions that shape California ethics and transparency laws, there are a handful of specific, fundamental laws that embody many of the issues commonly encountered by local officials and employees, and that often directly govern their actions. These key laws include: » Brown Act: Requires the governing bodies of local agencies to conduct open and public meetings, subject to limited exceptions, and to post meeting agendas beforehand. See Chapter 4 for more information. » Government Code section 1090: Prohibits public officials and employees from being financially interested in any contract made by them in their official capacity or by any body or board of which they are members. See Chapter 2 for more information. » Political Reform Act: Governs campaign financing and prohibits local agency officials and employees from participating in governmental decisions affecting their financial interests. See Chapter 2 for more information. » California Public Records Act: Subject to specified exemptions, requires public agencies to make writings created, used or possessed by the agency available to the public, upon request. See Chapter 4 for more information. It is not necessary for local agency officials and employees to have a thorough understanding of all the nuances and intricacies of each of these laws but they should be aware of the purpose and general requirements of each. Along with numerous other bodies of law, each of these key laws will be comprehensively discussed in this guide. Laws as Minimum Standards Because public trust and confidence is vital to the strength of a democratic system, ethics laws sometimes set very high standards for public official conduct. Even though public officials may feel at times that some of these high standards of conduct are unduly burdensome or intrusive of their private lives, they must accept that adhering to these standards, including broad financial disclosure rules for gifts and income, is simply part of the process of public service. Even so, it is important to keep in mind that these standards are only minimum standards; it is simply not possible or practical to write laws that prevent all actions that might diminish the public’s trust. For this reason, the laws should be viewed as a floor for conduct, not a ceiling. Just because a given course of conduct is legal does not mean that it is ethical (or that the public will perceive it as such). This means that public officials facing ethical issues are well-advised to engage in a three-step analysis: » Step One: What, if anything, does the law say about a given course of action? » Step Two: Is the given course of action consistent with one’s own values and analysis of what would constitute “ethical” conduct? » Step Three: What will the public’s perception be of the conduct, given the information the public is likely to have available? A helpful tool for analyzing the third question is whether one would like to see the course of conduct reported on the front page of the local newspaper. G.8.c Packet Pg. 235 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) 4 | Understanding the Basics of Public Service Ethics Laws | INTRODUCTION The Limits of this Information Although the Institute endeavors to help local officials understand technical and legal concepts that apply to their public service, this publication is not technical nor is it intended to provide legal advice. Officials are encouraged to consult technical experts, attorneys and/or relevant regulatory authorities for up-to-date information and advice on specific situations. Endnotes 1 Rushworth M. Kidder, How Good People Make Tough Choices (Simon and Schuster, 1995). 2 Id. 3 Id. FOR MORE INFORMATION On ethics laws and principles, see: » www.ca-ilg.org/ppoe. » www.fppc.ca.gov/learn/public-officials-and- employees-rules-/ethics-training.html. G.8.c Packet Pg. 236 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Institute for Local Government | 5 CHAPTER 2: Personal Financial Gain Laws G.8.c Packet Pg. 237 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Institute for Local Government | 7 Chapter 2: Personal Financial Gain Laws CONTENTS Receiving Special Favors or Money for Official Actions ...........................................................................................8 Basic Rules .................................................................................................................................................................8 Penalties .....................................................................................................................................................................8 California Law Penalties ...................................................................................................................................8 Federal Penalties ......................................................................................................................................................9 Disqualification Based on Financial Interests Under the Political Reform Act ...................................................11 Basic Rules ................................................................................................................................................................11 Political Reform Act – The Four Step Conflict of Interest Test .............................................................................. 13 Identifying Economic Issues .........................................................................................................................................15 What Kinds of Economic Interests Are a Concern? .......................................................................................15 Real Property Interests .........................................................................................................................................16 The “Public Generally” Analysis .........................................................................................................................17 What Happens if an Official is Disqualified? ...................................................................................................18 General Rule .....................................................................................................................................................18 Effect of Disqualification ...............................................................................................................................18 Penalties ...................................................................................................................................................................19 Political Reform Act Penalties.......................................................................................................................19 Effect on Agency and Those Affected by ...................................................................................................19 Agency’s Decision ...........................................................................................................................................19 Interests in Agency Contracts Barred .......................................................................................................................20 Basic Rules ..............................................................................................................................................................20 FPPC Jurisdiction over Section 1090 Questions .............................................................................................21 Exceptions to Rules ................................................................................................................................................22 Non-Interest Exception ..................................................................................................................................22 Remote Interest Exception ...........................................................................................................................22 Limited Rule of Necessity .....................................................................................................................................23 Penalties ...................................................................................................................................................................23 Criminal Penalties ...........................................................................................................................................23 Effect on Contract ...........................................................................................................................................23 Employment-Related Restrictions ...............................................................................................................................24 Basic Rules ...............................................................................................................................................................24 Penalties ...................................................................................................................................................................24 Endnotes and Additional Information ........................................................................................................................25 G.8.c Packet Pg. 238 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) 8 | Understanding the Basics of Public Service Ethics Laws | PERSONAL FINANCIAL GAIN LAWS Receiving Special Favors or Money for Official Actions BASIC RULES Perhaps the most blatant and extreme form of using one’s public position for financial gain is graft. Graft involves using one’s public position to get money or anything else of value. Examples of graft include bribery and extortion. A bribe involves conferring a benefit on a public official to influence a person’s vote, opinion, action or in-action.1 Asking for that bribe is illegal, of course, but so is receiving one or agreeing to receive one.2 Under California’s criminal laws, a “bribe” includes anything of value; it also includes receiving “advantages.” The advantage can be a future one and need not involve the payment of money.3 The federal law definition of bribery is even broader.4 Extortion involves, among other things, getting something from someone by wrongfully using one’s public position.5 For example, a public official may not demand money in return for the performance of his or her official duties.6 This includes demanding campaign contributions in return for action in one’s official capacity. Public officials are also forbidden from receiving a reward for appointing someone to public office or per- mitting someone to perform the duties of their offices.7 PENALTIES California Law Penalties Bribery Receiving or agreeing to receive a bribe is a crime, punishable by a combination of prison time, fines and forfeiting and being forever disqualified from holding public office.8 Fines vary according to whether the bribe was actually received. If it was, the fine is a minimum of $2,000 up to either $10,000 or double the amount of the bribe, whichever is greater. If a bribe was not actually received, there still is a fine between $2,000 and $10,000. The specified prison sentence is two to four years in state prison. Those who offer bribes also face penalties. Those who bribe a member of a legislative body of a city, county, school district or other special district face two to four years in state prison.9 Extortion Extortion by public officials is a misdemeanor.10 Misde- meanors are punishable by up to six months in county jail, a fine of up to $1,000 or both.11 Extortion can also be the basis for a grand jury to initiate removal-from-office proceedings (also known as “quo warranto”) for official misconduct.12 Appointing Someone to Office An official who receives payment or favors for making an appointment faces the following punishments: forfeiture of office, disqualification from ever holding public office again and a fine of up to $10,000.13 DON’T COUNT ON A CODE OF SILENCE Faced with the temptation of receiving a bribe, it can be easy to underestimate the chances of being caught, let alone successfully prosecuted. Fortunately, briberyis fairly rare, which may lead one to mistakenly assume prosecutors never find out about bribery. In some instances, prosecutors learn about illicit activities from informants from within an agency. In other instances, those who believe they have been asked for a bribe will turn the asking officials in. Sometimes, observers will notice that a public official seems to have more resources than before and start asking questions. The media views itself as a key watchdog on such issues, of course. Unfortunately, some officials discount the likelihood of getting caught and prosecuted. They figure that everyone involved in illicit activities will have a strong incentive to keep quiet. What they don’t realize is that prosecutors can offer powerful incentives to those involved to testify against others in exchange for reduced penalties, and that the prospect of successfully prosecuting an elected official provides prosecutors a high-visibility opportunity to make an example of an offender, perhaps reasoning that such an example will serve as a deterrent to others. G.8.c Packet Pg. 239 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Institute for Local Government | 9 IF I GET INTO TROUBLE, CAN THE AGENCY PAY MY DEFENSE? Don’t count on it. To provide a defense in a criminal action, for example, the agency must find that: 1. The criminal action or proceeding is brought on account of an act or omission in the official’s service to the public entity; 2. Such defense would be in the best interests of the public entity; and 3. The individual’s actions were in good faith, without actual malice and in the apparent interests of the public entity.14 If the issue is whether a public official misused his or her office for personal gain, it may be particularly difficult for the agency to make the third finding, which is that the actions were in the apparent interests of the public entity. Moreover, even if the agency could make these findings, it is not required to. Indeed, there may be strong political pressures not to. Similarly, an agency may refuse to provide a defense in a civil action if it finds the actions in question related to corruption or fraud.15 Also, public agencies are not responsible for damage awards designed to punish or make an example of someone (known as “punitive” or “exemplary” damages).16 Note that, in these situations, the agency’s attorney is not the public official’s personal attorney, with attendant protections for attorney-client confidences. The agency attorney’s legal and ethical obligations are to the agency itself– not to any one official in that agency.17 FEDERAL PENALTIES If an agency receives more than $10,000 in federal funding, an official of that agency could find him or herself subject to federal prosecution if the amount involved in an ethical violation (for example, a bribe) exceeds $5,000.18 The penalty for bribery under federal law is a fine of up to twice the amount of the bribe or $250,000 (whichever is greater), up to 10 years imprisonment, or both.19 Bribery, extortion, or embezzlement can also be basis of a federal income tax evasion charge. Federal prosecutors may treat money that an official receives through illicit means as income to the official. If the official fails to report this income at tax time (which of course, most don’t), the official becomes subject to an action for income tax evasion. Income tax evasion carries with it a possible five-year prison term and a fine of up to $100,000.20 In addition, prosecutors can require the defendant to pay for the costs of prosecution (in addition to one’s own defense costs).21 The sometimes-related crime of filing a false tax return is punishable by a maximum three-year prison term and a fine of up to $100,000 (along with the costs of prosecution).22 A court can also order a convicted official to pay restitution to the agency in the amount of the money or advantage received (or lost to the agency) as the result of criminal misuse of the official’s position.23 FOR MORE INFORMATION On penalties for ethics law violations, see www.ca-ilg.org/consequences. G.8.c Packet Pg. 240 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) 10 | Understanding the Basics of Public Service Ethics Laws | PERSONAL FINANCIAL GAIN LAWS MAKING A FEDERAL CASE OUT OF CORRUPTION Honest Services Fraud Under federal wire and mail fraud laws, the public has the right to the “honest services” of public officials.24 The basic concept is that a public official owes a duty of loyalty and honesty to the public—similar to a trustee or fiduciary.25 That duty is violated when a public official makes a decision that is not motivated by the public’s interests but instead by his or her personal interests.26 A clear example is when an official receives a personal financial gain as the result of his or her public service. Examples include bribes and kickbacks (for example, receiving money back from proceeds paid to a company that does business with a public entity).27 Sometimes violation of a state law is the basis of an “honest services” fraud claim (in addition to other charges, like income tax evasion). However, the courts have also held that such claims can also be based on common or judge- made law concepts relating to a public official’s fiduciary duties to his or her constituents. The potential penalties for federal fraud are steep. The maximum penalty for being guilty of wire and/or mail fraud includes a jail term of up to 20 years and a $250,000 fine.28 For more information, see “Making a Federal Case Out of Corruption,” available at www.ca-ilg.org/fedcase. G.8.c Packet Pg. 241 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Institute for Local Government | 11 Disqualification Based on Financial Interests Under the Political Reform Act BASIC RULES In the statewide general election of 1974, voters passed the Political Reform Act, creating an independent authority, the Fair Political Practices Commission (FPPC), to, among other things, administer and enforce an across-the-board, bright line rule: public officials may not participate in governmental decisions affecting their financial interests. The rule is designed to have public officials avoid putting themselves in the position of choosing between advancing the public’s interest or their own financial interests. That would be a potential conflict of interest. This does not mean there is anything corrupt or dishonest about having a disqualifying conflict of interest; nor is it against the law to have a disqualifying conflict of interest. It typically means that a public official has a personal life, with all the financial realities that life can involve. The key is to be aware when one’s economic interests are implicated by a public agency decision, so one can stay clear of and avoid the decision-making process. This way, there is no question about whether one’s personal interests affected the decision-making process in any way. The rule is that a public official may not make, participate in, or influence a governmental decision that will have a reasonably foreseeable and material financial effect on the official, the official’s immediate family, or any of the official’s economic interests.29 Economic interests include real property, sources of income, business entities in which a public official has an investment or holds a management position, and donors of gifts. Note the breadth of the disqualification requirement: one must not only step aside from voting, but the entire process leading up to a governmental decision…. Note the breadth of the disqualification requirement: one must not only step aside from voting, but the entire process leading up to a governmental decision, whether a vote of a legislative body or an action or decision by an employee vested with the authority to act on behalf of the agency. This means conversations with fellow officials and staff are also against the law if one has a conflict of interest. Also, there may be even more restrictive local requirements. Note that disqualified officials do not count toward the establishment of a quorum.30 Updates to the Political Reform Act Conflict of Interest Regulations The FPPC has updated conflict of interest regulations under the Political Reform Act. These changes are significant and have changed several key parts of the conflict of interest analysis, including: material business interests, what is “reasonably foreseeable,” the 500 foot real property rule, the public generally exception and overall streamlining of the 8-step conflict of interest analysis. For more information on these updates to the conflict of interest regulations, see the FPPC webpage for newly adopted, amended or repealed regulations at: www.fppc.ca.gov/the- law/fppc-regulations/newly-adopted-amended-or-repealed- regulations.html. Also seek professional guidance when facing a potential conflict of interest issue as the rules and regulations can be complicated. G.8.c Packet Pg. 242 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) 12 | Understanding the Basics of Public Service Ethics Laws | PERSONAL FINANCIAL GAIN LAWS Imprecise Terminology: Abstentions, and Disqualifications The terms “abstention,” and “disqualification” are sometimes used interchangeably when describing an official’s decision to step aside from the decision-making process, and the applicable laws do not necessarily mandate the use of any particular term. The important thing is to be clear on why a decision-maker is stepping aside. Voluntary Abstention There are instances in which a public official voluntarily chooses not to participate in a decision by “abstaining” from the vote. The official may know it will be difficult to put personal interests aside and make a decision based solely on the public’s interest. Or, the official may worry the public will perceive the official cannot put personal interests aside even if the official knows the he or she can. The decision to voluntarily refrain from participating in the decision-making process can involve two conflicting values: 1. One’s responsibility to perform the duties of his or her office; and 2. One’s responsibility to honor one’s own ethical standards or the public’s trust in the decision-making process. Both responsibilities are important, of course. Because of this, deciding not to participate should not be viewed as a way of avoiding difficult decisions. Mandatory Disqualification By contrast, when someone has a disqualifying conflict of interest, there is no choice. The law prohibits that individual from participating in or seeking to influence a decision—even if the official believes he or she can be fair. The law presumes the public will doubt a person’s ability to be fair. This is an example of avoiding the appearance of impropriety as well as the potential for actual impropriety. G.8.c Packet Pg. 243 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Institute for Local Government | 13 Political Reform Act – The Four Step Conflict of Interest Test The process of determining when an official is disqualified from participating in a decision can be a very complex one, depending on the interests involved and the governmental decision contemplated. There are statutes, regulations, and interpretive opinions that flesh out each aspect of the basic prohibition. To organize the analysis, the FPPC has adopted a new four- step procedure (trimmed down from an eight-step analysis that had been used for many years) for identifying when one must disqualify oneself from participating in a matter. Although it is useful to be aware of the general outlines of the process, the analysis is probably best undertaken with the assistance of agency attorneys and/or the FPPC staff— particularly since the rules are not necessarily logical or intuitive. 1. Is it reasonably foreseeable that a governmental decision will have a financial effect on any of the public official’s financial interests? 2. Will the reasonably foreseeable financial effect be material? 3. Can the public official demonstrate that the material financial effect on the public official’s financial interest is indistinguishable from its effect on the public generally? 4. If, after applying the three steps above the public official determines they have a conflict of interest, he or she may not make, participate in making, or in any way attempt to use his or her official position to influence the governmental decision, unless some exception applies. Evaluating each of these four steps involves fact-specific inquiries that must be guided by the standards and definitions laid out in the regulations.31 FOR MORE INFORMATION ETHICS CODE VERSUS LOCAL CONFLICT OF INTEREST CODES California’s Political Reform Act requires local agencies to adopt local conflict of interest codes.32 These codes supplement state law, by specifying which positions in the agency are subject to disclosure under the Act. For more information, see “About Local Conflict of Interest Codes” (available at www.ca-ilg. org/local- conflict-of-interest-codes) and the FPPC’s materials on adopting local conflict of interest codes (see http://www.fppc.ca.gov/ learn/rules-on-conflict-of-interest-codes/local- government-agencies-adopting-amending-coi. html). See the following resources: » “Deciding When Not to Participate in an Agency Decision: Abstentions and Disqualifications,” available at www.ca-ilg.org/abstentions. » “Property Ownership in Your Jurisdiction,” available at www.ca-ilg.org/owningproperty. For specific questions, please contact agency counsel or the FPPC at 1-866-ASK-FPPC (866-275-3772 *2) or Advice@fppc.ca.gov. G.8.c Packet Pg. 244 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) 14 | Understanding the Basics of Public Service Ethics Laws | PERSONAL FINANCIAL GAIN LAWS GETTING ADVICE AND STAYING OUT OF TROUBLE ON POLITICAL REFORM ACT ISSUES Public officials should seek advice on how these laws apply as early in the process as possible — as soon as a disqualifying conflict of interest is even a possibility. This means taking an active and attentive role by asking questions when items are placed on an agency agenda or mentioned or discussed as part of an agency’s business. For example, when a city manager or other executive previews items or programs during a report, or when staff responds to a question from a constituent, if it becomes evident that a governmental decision within the meaning of the law is contemplated, the public official should immediately ask themselves whether any of their financial interests might be affected, and, if so, seek advice about whether they have an actual conflict. Early consultation allows an attorney to analyze all of the facts involved and the relevant law. Even though the analysis is laid out in four specific steps, each step has various rules and FPPC regulations associated with it, which can be complex. As one seasoned local agency attorney has observed, the later in the process the consultation occurs, the more likely the advice will be that disqualification must occur to make sure the official stays out of trouble. Does advice from agency counsel protect an official against a FPPC enforcement action? No. Only a formal opinion or formal advice letter from the FPPC will protect a public official if someone argues that a violation of the Political Reform Act has occurred. Receiving such advice from the Commission takes time — another good reason to raise the conflict issue as early as possible. G.8.c Packet Pg. 245 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Institute for Local Government | 15 Identifying Economic Issues WHAT KINDS OF ECONOMIC INTERESTS ARE A CONCERN? There are a number of ways to have a financial interest in a decision: » Sources of Income. Receiving $500 or more in income from one source (including any income received from a business, nonprofit organization, government agency, or individual) within twelve months prior to the decision creates an economic interest. “Sources of income” includes a community property interest in a spouse or domestic partner’s33 income, but not separate property income.34 Additionally, if someone promises an official $500 or more twelve months prior to the decision, the person or entity promising the money is a source of income, even if the income has yet to be received by the official, as long as the official has a legally-enforceable right to the promised income.35 » Investments. An economic interest is created if the official, the official’s spouse or domestic partner41 (even as separate property), or dependent children (or anyone acting on their behalf) has an investment worth $2,000 or more in a business entity (even if the official does not receive income from the business).42 Investments include stocks and corporate (though not government) bonds. » Business Employment or Management. If the official serves as a director, officer, partner, trustee, employee or otherwise serves in a management position in a company, an economic interest is created.43 Note this does not apply to a member of the board of a nonprofit entity. » Related Businesses. The official has an economic interest in a business that is the parent, subsidiary or is otherwise related to a business where the official: • Has a direct or indirect investment worth $2000 or more; or • Is a director, officer, partner, trustee, employee, or manager.44 » Personal Finances. An official has an economic interest in their own expenses, income, assets, or liabilities and those of the official’s immediate family (spouse or domestic partner36 and dependent children).37 » Real Property. An interest in real property worth $2,000 or more creates an economic interest.38 The interest may be held by the official, the official’s spouse or domestic partner39 (even as separate property) and children (or anyone acting on their behalf). Real property interests can also be created through leases, loans, mortgage, or security interests in property.40 » Business-Owned Property. A direct or indirect ownership interest in a business entity or trust that owns real property is another form of economic interest.45 » Loans. A loan from someone (or guarantee on a loan) can create an economic interest unless the loan is from a commercial institution, made in the regular course of business and is on the same terms as are available to members of the public.46 » Gifts. Receiving gifts totaling $460 (2015-16) or more in a twelve-month period prior to the decision from any one person or organization may create an economic interest depending on the type of public official involved and whether the gift-giver is in the agency’s jurisdiction.47 Being promised a gift of $460 (2015-16) or more within a twelve- month period prior to the decision can also create a disqualifying financial interest.48 The limit is adjusted every two years to reflect changes in the cost of living.49 For more discussion of the gift issue, please see Chapter 3, and www.ca-ilg.org/ GiftCenter. The timeline for determining whether an official has a potentially disqualifying economic interest is twelve months before the decision in question—not the calendar year.50 If a public official thinks he or she has one of the economic interests described above, the next step is to consult with the agency attorney about the situation and how the FPPC’s four-step conflict of interest analysis applies. One of the key purposes of the disclosure requirements is to enable the public to assess whether an official’s financial interests may affect his or her decision-making. The disclosure requirements are discussed in further detail in Chapter 4. G.8.c Packet Pg. 246 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) 16 | Understanding the Basics of Public Service Ethics Laws | PERSONAL FINANCIAL GAIN LAWS DISCLOSURE OF CONFIDENTIAL INFORMATION California law also makes disclosure of certain kinds of confidential information for personal financial gain (as defined) a misdemeanor.51 This restriction applies to public officers and employees.52 Confidential information means information not subject to disclosure under the Public Records Act and information that may not be disclosed by statute, regulation, or rule.53 REAL PROPERTY INTERESTS The previous FPPC regulations analyzed real property conflicts in a two-step process. The first step was to determine if the official’s property was “directly” or “indirectly” involved in the decision and then to determine if the decision would have a “material” effect on the official’s property. The old regulations described a number of different types of decisions, and provided that if the official’s property was the subject of one of those types of decisions, the property was deemed to be “directly” involved in the decision. In addition, there was a rule based upon the proximity of the official’s property in relation to other property that was the subject of the decision. If the official’s property was within 500 feet of the subject property, the official’s property was deemed to be “directly” involved in the decision. If the official’s property did not fall within any of the circumstances described in the old rule, the official’s property was considered to be “indirectly” involved in the decision. In 2014, the FPPC amended its regulations to simplify the property interests analysis by dispensing with the “directly” versus “indirectly involved” dichotomy. Now, a real property interest is examined in light of its “materiality” only.54 Before the change, if the official’s property was located within 500 feet of property that was the subject of a governmental decision, the financial impacts of the decision on the official’s property were presumed to be material. The presumption could be rebutted, however, by showing that the decision would not have any impact on the value of the official’s property. Now, the 500 foot rule is still a part of the new regulation but the presumption of materiality can only be rebutted by written advice from the FPPC finding that the decision will have no measureable impact on the value of the official’s property. G.8.c Packet Pg. 247 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Institute for Local Government | 17 Additionally, the recent changes to the regulation ushered in a new “Reasonably Prudent Person” standard, which serves as a sort of “catch-all” exemption. Specifically, even if an official’s property is not the subject of the decision, or is located well beyond 500 feet from the subject property, the official must consider whether “…a reasonably prudent person, using due care and consideration under the circumstances, [would] believe that the governmental decision was of such a nature that its reasonably foreseeable effect would influence the market value of the official’s property.” For interests in common areas, such as in a residential condominium complex or an industrial lease that includes areas in common with other tenants, the new regulations redefine “real property in which an official has an interest” to exclude an official’s undivided interest in common area, thus offering another simplification of the real property interest analysis. For interests in business properties, under the updated regulations, the effects of the decision on the official’s real property interest do not have to be considered when the decision involves the issuance of a permit or entitlement, or when one is considering the impact of the decision on the income producing potential of the property. When applying those factors, only the impacts on the official’s business entity interest are to be considered.55 THE “PUBLIC GENERALLY” ANALYSIS Under the FPPC’s Four-Step Test, if the effect of a decision on the public official’s interests is indistinguishable from the effect on the public generally, the public official may participate in the decision even if the decision would otherwise materially affect the official’s economic interests. In 2015, the FPPC revised the analysis to simplify the previous general rule and various exceptions; the former nine separate regulations were consolidated into a single regulation,56 which now provides that an official may participate in a decision “if the official establishes that a significant segment of the public is affected and the effect on his or her financial interest is not unique compared to the effect on the significant segment.” A “significant segment is defined as at least 25% of: » All businesses or nonprofit entities in the jurisdiction; » All real property (commercial or residential) in the jurisdiction; or » All individuals in the jurisdiction. The effect of a decision on an official’s interest is considered unique if it results in a disproportionate effect on: » The development potential, use, or income-producing potential of real property or a business entity in which the public official has an interest; » The official’s business entity or real property because of how close business or the property is to the project that is the subject of the decision; » The official’s business entity or real property interests as a result of the cumulative effect of the official’s multiple interests in similar entities or properties that is substantially greater than the effect on a single interest; » The official’s business entity or real property interests as a result of the public official’s substantially greater business volume or larger real property the size when the decision will affect all interests by the same or similar rate or percentage; » A person’s income, investments, assets or liabilities, or real property if the person is a source of income or gifts to the official; or » The official’s personal finances or those of his or her immediate family.57 G.8.c Packet Pg. 248 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) 18 | Understanding the Basics of Public Service Ethics Laws | PERSONAL FINANCIAL GAIN LAWS WHAT HAPPENS IF AN OFFICIAL IS DISQUALIFIED? General Rule If an official is disqualified from participating on a specific agenda item under the conflict of interest rules established by the Political Reform Act, the official must: » If the decision is being voted on at a public meeting, verbally identify the financial interest or potential conflict of interest in sufficient detail to be understood by the public; and » Not attempt to influence the decision in any way, which includes talking with colleagues or staff about the matter at any time, including before, during, or after any meeting at which the item may be taken up. At the meeting, elected and appointed officials, and top staff members who have conflicts of interest must leave the room when that matter is up for decision (unless the matter is on consent, in which case the official must declare the conflict and have the clerk record an abstention on that particular item).58 This may be a good practice for comparable officials at other local agencies as well. Officials subject to the leave-the-room requirement will also need to explain why they are disqualified from participating, based on the nature of the financial interest.59 For example: » Investment. If the interest relates to an investment, provide the name of the business in which the investment is held. » Business Position. If the interest relates to a business position, give a general description of the activity in which the business is engaged as well as the name of the business. » Real Property. If the interest relates to real property, supply the address or another indication of the location of the property (unless the property is the public official’s principal or personal residence, in which case explain the property is a residence and do not give the address or location). » Income or Gifts. If the interest relates to the receipt of income or gifts, then describe the source. » Personal Finances. If the interest relates to a personal financial interest in the decision, then describe the expense, liability, asset or income affected. Exceptions to the Leave-the-Room Requirement There are limited exceptions that allow a disqualified official to remain in the room and provide input as a member of the public to represent himself or herself on matters related solely to the official’s “personal interests.”60 These include when the subject of the discussion is: » Interests in real property wholly owned by the official or his or her immediate family;61 » Interests in a business entity wholly owned by the official or his or her immediate family;62 and » Interests in a business entity over which the official (or the official and his or her spouse or domestic partner63) exercises sole direction and control.64 Even though the law allows the public official to remain in the room when these interests are at stake, the public official may still wish to balance that option with the potential that the public may nonetheless perceive the official is improperly trying to influence his or her colleagues. Many officials balance their rights as individuals with their responsibility to maintain the public’s trust in both their leadership and the agency that they serve by leaving the room after having provided their input related to their personal interest. Note on Closed Sessions If a decision will be made or discussed in a closed session, an official with a conflict may not be present. Nor may the official obtain non-public information about the closed session.65 Effect of Disqualification The general rule is a majority of the membership of a body must be present in order for the decision-making body to conduct business—a concept known as a quorum.66 For some kinds of agencies, a majority of the quorum is necessary for an item to pass, although there are special rules that apply to certain kinds of actions. Note, however, the rule is different for county boards of supervisors, community college boards and school boards, which generally require a majority vote of the entire membership of the board to act.67 Those who are disqualified from participating in the decision are not counted toward the quorum.68 G.8.c Packet Pg. 249 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Institute for Local Government | 19 However, those who abstain because of a pending question concerning a conflict of interest (for example, an elected official is waiting to receive an advice letter from the FPPC) may be counted toward the quorum. This is because they have not yet been disqualified (typically their agency attorneys will recommend they abstain pending resolution of the conflict issue).69 FOR MORE INFORMATION PENALTIES Political Reform Act Penalties A refusal to disqualify oneself is a violation of the Political Reform Act. Violations of these laws are punishable by a variety of civil, criminal, and administrative penalties, depending on the severity of the violation and the degree of intent to violate the law that enforcement entities are able to demonstrate.70 These penalties can include any or all of the following: » Immediate loss of office;71 » Prohibition from seeking elected office in the future;72 » Fines of up to $10,000 or more depending on the circumstances;73 and » Jail time of up to six months.74 Effect on Agency and Those Affected by Agency’s Decision When a disqualified official participates in a decision, a court can void the decision.75 This can have serious consequences for those affected by the decision as well as the public agency itself. If someone is encouraging an official to participate in spite of a disqualifying interest, consider pointing out the costs that would occur if the agency’s decision has to be undone—not to mention the legal consequences for the official. Typically it is wise to err on the side of caution when there is a question regarding the appropriateness of an official’s participation in a matter. When in doubt, sit a decision out. FOR MORE INFORMATION On penalties for ethics law violations, see www.ca-ilg.org/ consequences. See the following resources: » The FPPC has produced “Recognizing Conflicts of Interest: A Guide to the Conflict of Interest Rules of the Political Reform Act” (2015), available at www.fppc.ca.gov/content/dam/ fppc/NS-Documents/LegalDiv/Conflicts%20 of%20Interest/Conflicts-Guide-August-2015- Jan-2016-Edits.pdf. » “Using Public Office to Promote One’s Business Interests,” available at www.ca-ilg.org/ publicoffice. » Conflicts of Interest (2010). Explains California’s conflict-of-interest laws available at http://ag.ca. gov/publications/coi.pdf. For specific questions, please contact the Fair Political Practices Commission or agency counsel. G.8.c Packet Pg. 250 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) 20 | Understanding the Basics of Public Service Ethics Laws | PERSONAL FINANCIAL GAIN LAWS Interests in Agency Contracts Barred BASIC RULES California law strictly forbids public officials from having an economic interest in their agencies’ contracts. In essence, this is a prohibition against self-dealing. Now codified in section 1090 of the Government Code, this particular law has been traced back to the earliest days of California’s statehood—to 1851.76 This prohibition applies to elected and appointed officials as well as public agency employees and consultants.77 This means that, if an official has an interest in a contract being contemplated by their agency, the agency may not enter into the contract. If a staff member has an interest in the contract, the staff member may not participate in any way in the contract negotiations or in any part of the development of the contract. Contracts are broadly defined and include employment and a variety of other relationships, including independent contractors.78 Key things to keep in mind include the following. » Making a Contract. The prohibition applies to preliminary discussions, negotiations, planning and solicitation of bids, as well as voting on the contract itself. This means the affected official can’t be involved in those as well. » Disqualification Doesn’t Fix the Problem. When the prohibition applies, the agency may not enter into the contract in question. Members of the governing board of a local agency (including a board of supervisors, board of directors, city council or school board members) are deemed to have made any contract executed by the board, or any person or agency under its jurisdiction, even if officials disqualify themselves from participating in the contract. » Financial Interest. A “financial interest” in a contract includes a direct or indirect financial interest. A direct financial interest is present when the official is the party contracting with the agency. An indirect financial interest involves an official who has a financial relationship with the contracting party or will receive some benefit from the making of the contract with the contracting party. For example, the Attorney General has concluded that a trustee of a community college district cannot become employed in any capacity by the district because the trustee would have a financial interest in the employment contract. It does not matter if the official’s financial interest is positively or negatively affected. This provision covers financial relationships that go beyond the official’s immediate family. Officials will sometimes hear their agency counsel refer to this issue as a “section 1090 problem,” in reference to the Government Code section containing this prohibition. These restrictions on contracts are in addition to the restrictions of the Political Reform Act. A key question to ask oneself in evaluating an agency’s contracts is: “will this contract affect my economic interests in any way?” If the answer is “yes,” speak with agency counsel immediately. A key question to ask in evaluating an agency’s contracts is: “will this contract affect my economic interests in any way?” If the answer is “yes,” speak with agency counsel immediately. G.8.c Packet Pg. 251 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Institute for Local Government | 21 FPPC JURISDICTION OVER SECTION 1090 QUESTIONS The Legislature empowered the FPPC in 2013 to enforce the provisions of section 1090 through either administrative proceedings similar to those it uses for violations of the Political Reform Act or civil actions imposing fines. Prior to commencing such an action, however, the FPPC must obtain permission from the district attorney of the county in which the alleged violation occurred, and the FPPC may not issue opinions related to past conduct. Further, before providing advice, the FPPC must send a copy of the request for advice to the Attorney General and the local district attorney.79 The FPPC has developed a six-step analysis to determine whether a violation of section 1090 might occur based on the facts and circumstances presented to the FPPC prior to the action being taken. Those steps are as follows: Step 1: Is the public official in question subject to the provisions of section 1090? Step 2: Does the decision at issue involve a contract? Step 3: Is the official making or participating in making a contract? Step 4: Does the official have a financial interest in the contract? Step 5: Does either a remote interest or a noninterest exception apply? Step 6: Does the “Rule of Necessity” apply? WHAT IS THE THEORY OF NOT ALLOWING DISQUALIFICATION? When the prohibition against interests in contracts under section 1090 applies, the agency may not enter into the contract, even if the official with the interest recuses or disqualifies him- or herself. Why? The theory seems to be decision-makers may be favorably influenced to award a contract that benefits a colleague— perhaps with the expectation the favor may be returned in the future. The courts have made clear that the law will assume that undue influence was exerted, and that the risk to the public from self-dealing by public officials is too great to allow anything other than a bright-line, absolute prohibition. The absolute prohibition guards against such a tendency toward what might be described as “you-scratch-my-back-I’ll- scratch-yours” dynamics within the agency. G.8.c Packet Pg. 252 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) 22 | Understanding the Basics of Public Service Ethics Laws | PERSONAL FINANCIAL GAIN LAWS EXCEPTIONS TO RULES There are limited exceptions to the general prohibition against interests in contracts. Non-Interest Exception Some potential interests in a contract are so small California law classifies them as “non-interests” in a contract. One is when an official receives public services provided by the official’s agency on the same terms that the services are provided to the general public. For example, a member of a water district board may receive water service. In such cases, the official and the official’s agency may participate in the contract. California law provides a full list of exceptions.80 Remote Interest Exception A local agency may enter into a contract when an official has a “remote” interest so long as the official does not attempt to influence another member of the board or council.81 Government Code section 1091 lists more than a dozen types of remote interests, including: » Being an employee of the contracting party, if the contracting party has ten or more employees, the employee began his or her employment at least three years prior to initially assuming office, and certain other requirements are met; 82 or » Being a supplier of goods or services to the party contracting with the agency, when those goods or services have been supplied to the contracting party by the public official for at least five years prior to assuming office.83 Moreover, in 2015, the Legislature passed Senate Bill 704 which added a remote interest exception stating that an official is not financially interested in a contract if he or she is an owner or partner of a firm serving on an advisory board to the contracting agency and the owner or partner recuses himself or herself from reviewing a project that results from a contract between the firm and agency.84 If the decision-maker qualifies as having a remote interest, the agency must then take these steps to stay on the right side of the law: » The board or council member must disclose the financial interest to the board or council, and disqualify himself or herself from participating in all aspects of the decision; » The disclosure must be noted in the official records of the board or council; and » The board or council, after such disclosure, must approve, ratify or authorize the contract by a good faith vote of the remaining qualified members of the board or council.85 It is important to note that this exception applies only to members of multi-member bodies (not to individual decision-makers and employees).86 G.8.c Packet Pg. 253 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Institute for Local Government | 23 LIMITED RULE OF NECESSITY Even if there is not an exception from the prohibition, the agency may still enter into a contract if the rule of necessity applies.87 In general, this allows an agency to acquire an essential supply or service. The rule also allows a public official to carry out essential duties of his or her office where he or she is the only one who may legally act. Consult with agency counsel whether the intricacies of this rule may apply in any given situation. Types of Ethics Laws SPECIAL RULE FOR SCHOOL DISTRICT BOARDS California’s Education Code specifically allows school board members to vote on collective bargaining agreements and personnel matters that affect a class of employees to which a relative belongs.88 Whether this rule also applies to domestic partners is not clear under the statute. FOR MORE INFORMATION See the following resources: » “How Your Agency Counsel Should Advise You When Agency Contracts Represent a Conflict of Interest,” available at www.ca-ilg.org/coi. » “Let’s Make a Deal: Securing Goods and Services For Your Agency,” available at www.ca-ilg.org/procurement. For specific questions, please contact agency counsel. PENALTIES The penalties for violating the prohibition against interests in contracts are severe. Criminal Penalties Willful violations are a felony and may be punished by fines of up to $1,000, imprisonment, and being disqualified from ever holding public office again.91 Effect on Contract The contract also is “void,” which means the local agency does not have to pay for goods or services received under the contract.92 The agency may also seek repayment of amounts already paid.93 FOR MORE INFORMATION On penalties for ethics law violations, see www.ca-ilg.org/consequences. Types of Ethics Laws GETTING ADVICE AND STAYING OUT OF TROUBLE ON CONTRACT ISSUES As with issues under the Political Reform Act, advice of counsel does not provide a defense or immunity in a criminal prosecution relating to unlawful interests in contracts.89 As discussed above, the FPPC now has authority to issue advice and opinions on questions involving contracts under section 1090. The Attorney General will also provide such advice, but only certain kinds of officials are entitled to request an Attorney General opinion.90 In addition, the process can take months. G.8.c Packet Pg. 254 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) 24 | Understanding the Basics of Public Service Ethics Laws | PERSONAL FINANCIAL GAIN LAWS Employment-Related Restrictions BASIC RULES Another kind of “personal financial gain” law prohibits elected officials and top-level managers from trading on the relationships developed in public service for their own benefit. For example, elected officials and chief executives who leave government service must not represent people for pay before their former agencies for one year after leaving their agency.94 This is known as a “revolving door” restriction. In addition, under California’s conflict of interest disqualification rules, a public official may not make or influence agency decisions when the interests of a prospective employer are at stake.95 The situation arises when an official is negotiating or has “any arrangement” concerning prospective employment with someone with business before the agency. FOR MORE INFORMATION On employment restrictions, see “Revolving Door Restrictions for Local Officials,” available at www.ca-ilg.org/revolvingdoor. For specific questions, please contact the Fair Political Practices Commission or agency counsel. WHEN AN EMPLOYEE RUNS FOR A SEAT ON THE GOVERNING BOARD California law says that, with a few exceptions, local agency employees must resign their employment before taking a seat on the governing board of their local agency.96 However, running for an office is not prohibited while employed by a local agency. This restriction applies to cities, counties, special districts, and other public agencies and corporations.97 There are parallel restrictions for employees who run for school boards98 and community college district governing boards.99 All of the sections note that, if an employee refuses to resign, his or her position will automatically terminate upon being sworn into office on the governing board.100 These restrictions prevent the dual role conflicts associated with being both in the role of employee and employer.101 PENALTIES These employment-related restrictions are part of the Political Reform Act. As discussed above, violations of the Act are punishable by a variety of civil, criminal and administrative penalties, depending on the severity of the violation and the degree of intent to violate the law that enforcement entities are able to demonstrate.102 These penalties can include any or all of the following: » Immediate loss of office;103 » Prohibition from seeking elected office in the future;104 » Fines of up to $10,000 or more depending on the circumstances;105 and » Jail time of up to six months.106 FOR MORE INFORMATION On penalties for ethics law violations, see www.ca-ilg.org/consequences. G.8.c Packet Pg. 255 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) Institute for Local Government | 25 Endnotes and Additional Information Note: The California Codes are accessible at http://leginfo. legislature.ca.gov/. Fair Political Practices Commission regulations are accessible atwww.fppc.ca.gov/the-law/ fppc-regulations/regulations-index.html. A source for case law information is www.findlaw.com/cacases/ (requires registration). 1 Cal. Penal Code §§ 7 (definition number 6), 68(a). 2 See Cal. Penal Code §§ 68(a), 86. 3 Id.; See also People v. Anderson, 75 Cal. App. 365, 242 P.2d 906 (1925). 4 See 18 U.S.C. § 201. 5 See Cal. Penal Code § 518. 6 In re Shepard, 161 Cal. 171 (1911) (in the context of removal- from- office proceedings for misconduct). 7 Cal. Penal Code § 74. 8 See generally Cal. Penal Code § 68(a). See also Cal. Elect. Code § 20 (making those convicted of making or receiving a bribe ineligible for public office). 9 See Cal. Penal Code § 85. 10 Cal. Penal Code § 521. 11 Cal. Penal Code § 19. 12 Cal. Gov’t Code §§ 3060-3074. 13 Cal. Penal Code § 74. 14 See Cal. Gov’t Code § 995.8. See also Los Angeles Police Protective League v. City of Los Angeles, 27 Cal. App. 4th 168, 32 Cal. Rptr. 2d 574 (1994) (finding city was not required to provide the defense of police officers accused of vandalism and conspiracy to commit vandalism). 15 See Cal. Gov’t Code § 995.2(a)(2) (public agency may refuse defense of civil action if, among other reasons, the agency finds the official acted because of “actual fraud, corruption or actual malice.”) See also Cal. Gov’t Code § 822.2 (immunity from liability for misrepresentation does not apply in instances of corruption). 16 See Cal. Gov’t Code § 818. 17 California Rules of Professional Conduct for Lawyers, Rule 3-600(A); Ward v. Superior Court, 70 Cal. App. 3d 23, 138 Cal. Rptr. 532 (1977) (county counsel’s client is county, not assessor in his individual capacity). 18 18 U.S.C. § 666. 19 See 18 U.S.C. §§ 666 (specifying maximum 10-year prison term and fine “under this title”), 3571 (general fine for violating federal criminal laws). 20 26 U.S.C. § 7201. 21 Id. 22 26 U.S.C. § 7206(1). 23 U.S. v. Gaytan, 342 F.3d 1010 (9th Cir. 2003). 24 18 U.S.C. §§ 1341 (mail fraud), 1343 (wire fraud), 1346 (honest services). 25 U.S. v. Sawyer, 239 F.3d 31, 39 (1st Cir. 2001) (finding sufficient evidence of guilt apart from proof of violation of state law). 26 U.S. v. Lopez-Lukis, 102 F.3d 1164, 1169 (11th Cir. 1997) (noting that effort to improperly control composition of decision- making body constituted an effort to deprive public of honest services); McNally v. U.S., 483 U.S. 350, 362-63 (1987) (Justice Stevens, dissenting). 27 See Skilling v. U.S., 130 S.Ct. 2896, 2931(2010) (holding that in order to avoid unconstitutional vagueness, 18 USC § 1346 only criminalizes bribes and kick-back schemes). 28 18 U.S.C. §§ 1341 (“. . . shall be fined under this title or imprisoned not more than 20 years, or both.”), 1343 (“shall be fined under this title or imprisoned not more than 20 years, or both.”). 29 See Cal. Gov’t Code §§ 87100-87105. 30 2 Cal. Code Regs. § 18707(a)(1)(C). 31 2 Cal. Code Regs. § 18700(d). 32 Cal. Gov’t Code § 87300. 33 2 Cal. Code Regs. § 18229. 34 Cal. Gov’t Code §§ 82030, 87103(c); 2 Cal. Code Regs. §§ 18700, 18700.1. 35 Cal. Gov’t Code § 87103(c). See also Larsen Advice Letter, No. A-82- 192 (1982). 36 2 Cal. Code Regs. § 18229 (referring to Cal. Gov’t Code § 82029 defining “immediate family”). 37 2 Cal. Code Regs. § 18700. 38 Cal. Gov’t Code § 87103(b); 2 Cal. Code Regs. § 18700(c)(6)(B). 39 2 Cal. Code Regs. § 18229. 40 See Cal. Gov’t Code §§ 82033, 87103(b). 41 2 Cal. Code Regs. § 18229. 42 Cal. Gov’t Code §§ 82034, 87103(a); 2 Cal. Code Regs. § 18700(c) (6)(A). 43 Cal. Gov’t Code § 87103(d); 2 Cal. Code Regs. § 18700(c)(6)(D). 44 2 Cal. Code Regs. §§ 18700(c)(6)(D), 18700.2(b). 45 Cal. Gov’t Code § 82033 (pro rata interest, if own 10 percent interest or greater). 46 Cal. Gov’t Code § 82030(b)(8), (10). 47 Cal. Gov’t Code§ § 82028, 87103(e); 2 Cal. Code Regs. §§ 18940(c), 18940.2(a).. 48 Cal. Gov’t Code § 87103(e); 2 Cal. Code Regs. §§ 18940(c), 18940.2(a). 49 Cal. Gov’t Code § 89503(f). G.8.c Packet Pg. 256 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) 26 | Understanding the Basics of Public Service Ethics Laws | PERSONAL FINANCIAL GAIN LAWS 50 See generally Cal. Gov’t Code § 87103. See also 2 Cal. Code Regs. § 418700(c)(6)(C), (E). 51 See Cal. Gov’t Code § 1098(a). 52 Id. 53 See Cal. Gov’t Code § 1098(b) 54 See generally, 2 Cal. Code Regs. § 18702.2. 55 2 Cal. Code Regs. § 18702.2(a)(5). 56 2 Cal. Code Regs. § 18703. 57 2 Cal. Code Regs. § 18703(b),(c). 58 See 2 Cal. Code Regs. § 18707. 59 2 Cal. Code Regs. §18707(a)(1)(A). 60 2 Cal. Code Regs. §18707(a)(3)(C). 61 2 Cal. Code Regs. § 18704(d)(2)(A). 62 2 Cal. Code Regs. § 18704(d)(2)(B). 63 2 Cal. Code Regs. § 18229. 64 2 Cal. Code Regs. § 18704(d)(2)(C). 65 See 2 Cal. Code Regs. § 18707(a)(2). See also Hamilton v. Town of Los Gatos, 213 Cal. App. 3d 1050, 261 Cal. Rptr. 888 (1989). 66 See Cal. Gov’t Code § 36810 (for general law cities). See also Cal. Civ. Code § 12; Cal. Civ. Proc. Code § 15. 67 See Cal. Gov’t Code § 25005; Cal. Educ. Code §§ 35164 (K-12 districts), 72000(d)(3) (community college districts). 68 2 Cal. Code Regs. § 18707(a)(1)(C); Farwell v. Town of Los Gatos, 222 Cal. App. 3d 711, 271 Cal. Rptr. 825 (1990) (subsequently ordered not published). See also 62 Cal. Op. Att’y Gen. 698, 700 (1979). 69 Farwell v. Town of Los Gatos, 222 Cal. App. 3d 711, 271 Cal. Rptr. 825 (1990) (subsequently ordered not published). See also 62 Cal. Op. Att’y Gen. 698, 700 (1979). 70 See generally Cal. Gov’t Code §§ 91000-14. 71 See Cal. Gov’t Code § 1770(h) (providing a vacancy occurs upon conviction of a felony or of any offense involving a violation of official duties). 72 See Cal. Gov’t Code § 91002 (providing no person convicted of a misdemeanor under the Political Reform Act shall be a candidate for any elective office or act as a lobbyist for a period of four years following the date of the conviction). 73 Cal. Gov’t Code § 91000(b). See also Cal. Gov’t Code § 83116(c) (providing that the FPPC may impose administrative penalties of up to $5,000 per violation of the Political Reform Act). 74 See Cal. Penal Code § 19 (providing misdemeanors are punishable by imprisonment in county jail up to six months, a fine not exceeding $1,000, or both). 75 See Cal. Gov’t Code § 91003(b). 76 California Attorney General, Conflicts of Interest, 55 (2010), available at http://ag.ca.gov/publications/coi.pdf. 77 Id. 78 See California Housing Finance Agency v. Hanover/California Management and Accounting Center, Inc. (2007) 148 Cal.App.4th 682. 79 Cal. Gov’t Code § 1097.1. 80 See Cal. Gov’t Code § 1091.5. 81 See Cal. Gov’t Code § 1091(a), (c). 82 See Cal. Gov’t Code § 1091(b)(2). 83 See Cal. Gov’t Code § 1091(b)(8). 84 2015 Cal. Stat. ch. 495, § 1 (amending Cal. Gov’t Code § 1091). 85 See Cal. Gov’t. Code § 1091. 86 California Attorney General, Conflicts of Interest, 67(2010), available at http://ag.ca.gov/publications/coi.pdf. 87 See 70 Cal. Op. Att’y Gen. 45 (1987). 88 See Cal. Educ. Code § 35107(e). 89 People v. Chacon, 40 Cal. 4th 558, 53 Cal. Rptr. 3d 876 (2007). 90 See Cal. Gov’t Code § 12519. 91 See Cal. Gov’t Code § 1097. 92 Thomson v. Call, 38 Cal. 3d 633, 214 Cal. Rptr. 139 (1985). 93 See Cal. Gov’t Code § 1092. 94 Cal. Gov’t Code § 87406.3; 2 Cal. Code Regs. § 18746.3. 95 Cal. Gov’t Code § 87407. 96 Cal. Gov’t Code § 53227(a). 97 Cal. Gov’t Code § 53227.2(a). 98 Cal. Educ. Code § 35107(b)(1). 99 Cal. Educ. Code § 72103(b)(1). 100 Cal. Gov’t Code § 53227(a); Cal. Educ. Code §§ 35107(b)(1), 72103(b)(1). 101 Bd. of Retirement of Kern County Employees’ Retirement Ass’n v. Bellino, 126 Cal. App. 4th 781, 24 Cal. Rptr. 3d 384 (2005). 102 See generally Cal. Gov’t Code §§ 91000-14. 103 See Cal. Gov’t Code § 1770(h) (providing a vacancy occurs upon conviction of a felony or of any offense involving a violation of official duties). 104 See Cal. Gov’t Code § 91002 (providing no person convicted of a misdemeanor under the Political Reform Act shall be a candidate for any elective office or act as a lobbyist for a period of four years following the date of the conviction). 105 Cal. Gov’t Code § 91000(b). See also Cal. Gov’t Code § 83116(c) (providing that the FPPC may impose administrative penalties of up to $5,000 per violation of the Political Reform Act). 106 See Cal. Penal Code § 19 (providing misdemeanors are punishable by imprisonment in county jail up to six months, a fine not exceeding $1,000, or both). G.8.c Packet Pg. 257 Attachment: Attachment C- Sample Codes of Ethics (City Council Policies and Procedures) ATTACHMENT D City of Monterey Park: Resolution No. 9283 ATTACHMENT D City of Monterey Park: Resolution No. 9283 A Resolution of the City Council of Monterey Park Establishing 11 P.M. as an Upper-Limit Curfew for the Transaction of City Business at Regular Meetings of the City Council G.8.d Packet Pg. 258 Attachment: Attachment D - Monterey Park Resolution Regarding Time Limitations on Meetings (City Council Policies and Procedures) RESOLUTION NO. 9283 A RESOLUTION OF THE CITY COUNCIL OF MONTEREY PARK ESTABLISHING 11 P.M. AS AM UPPER-LIMIT CURFEW FOR THE TRANSACTION OF CITY BUSINESS AT REGULAR MEETINGS OF THE CITY COUNCIL WHEREAS, the Monterey Park city Council (the "Council") desires to manage the transaction of the City's business at its regular meetings in a consistent, efficacious manner, and WHEREAS, at the same time, the Council seeks to serve the public's fundamental right to participate in the process of conducting the City's. business in a consistent, efficacious manner. NOW, THEREFORE, THE CITY COUNCIL OF MONTEREY PARK DOES HEREBY DECLARE AS FOLLOWS: ATTEST_: 1. That 11 p.m. shall be an upper-limit curfew for the transaction of Council business at regular meetings of the City Council. 2. That the City Clerk shall certify to adoption of this Resolution and enter it into the book of original Resolutions. ADOPTED, SIGNED, AND APPROVED this 9th day of January, 1989. -~~ -,_ ~&-6aAYi CITY CLE:!UC ~-.. G.8.d Packet Pg. 259 Attachment: Attachment D - Monterey Park Resolution Regarding Time Limitations on Meetings (City Council Policies and Procedures) AGENDA REPORT MEETING DATE: June 25, 2019 Council Item TITLE: June-2019 Award of Community Benefit Funds in the Amount of $2,000 PRESENTED BY: Cynthia Fortune, Assistant City Manager RECOMMENDATION: Approve the Community Benefit Fund (CBF) grant application from the Friends of the Grand Terrace Library and award the grant amount of $2,000 for their 2019 Summer Reading Program. 2030 VISION STATEMENT: This staff report supports the following City Council Goals: • Goal #1 - Ensure Our Fiscal Viability, through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations; and • Goal #4 – Develop and Implement Successful Partnerships through productive collaboration with community groups, youth programs and senior organizations. BACKGROUND: For the past three (3) fiscal years, the City Council has approved the use of $25,000.00 for the establishment of the Community Benefits Fund (CBF). The purpose of the Community Benefits Fund is to provide funding for local youth programs, community events, community fee waivers, and be used as an economic development tool for small business development in the City. Of the $25,000, $5,000.00 has been designated for the Light Up Grand Terrace activities. Various youth and senior program activities have benefited from the Community Benefits Fund including the Foundation of Grand Terrace, the REC Center, several youth sports leagues, and the Friends of the Grand Terrace Library. Below is a summary of the grants awarded in the last three (3) fiscal years: Fiscal Year Approved Budget Amount Awarded Unused Balance FY2015-16 $20,000.00 $12,423.00 $7,577.00 FY2016-17 20,000.00 11,601.00 8,399.00 FY2017-18 20,000.00 11,347.00 8,653.00 $60,000.00 $35,943.00 $24,629.00 G.9 Packet Pg. 261 Fiscal Year Approved Budget Amount Awarded Unused Balance Allocated to 40th Anniversary Activities $13,853.00 Returned to Fund Balance $10,776.00 Attachment A provides additional detail as to the awarded organizations, and the amount awarded in each fiscal year. In FY2018-19, City Council approved $20,000.00 for the Community Benefits Fund and has awarded the following applications thus far: Title 2018-19 as of May-2019 YOUTH / SCHOOL ORGANIZATIONS Grand Terrace Community Basketball $1,450 Grand Terrace High School Football Boosters $2,000 Grand Terrace High School Legacy Regiment Boosters $2,000 Terrace View Elementary PTA $700 $6,150 NON-PROFIT / SERVICE ORGANIZATIONS Friends of Grand Terrace Library $2,000 Sheriff’s Central Station Explorer Program $2,000 The REC Center $3,100 $7,100 GRAND TOTAL as of May-2019 $13,250 DISCUSSION: Application received from the Friends of the Grand Terrace Branch Library The Friends of the Grand Terrace Branch Library (Friends) support the Grand Terrac e Branch Library in its programs and activities through the holding of fund raising events such as book sales and sponsoring and/or staffing library events. G.9 Packet Pg. 262 The Friends share a love of books and learning, value the Grand Terrace Library as a place of knowledge and inspiration; and cherish the library as a vital community resource. In addition, the Friends strive to enhance the programs, services and materials through public awareness and cultural programs. The organization has applied and has received the following community benefit grants: Project Title Date of Award Amount Preschool Maker Space Program (supplies) 11/10/2015 $1,750 Summer 2016 Reading Program 05/10/2016 $2,000 Summer 2017 Reading Program 06/13/2017 $2,000 Library Display Materials & DVDs 07/25/2017 $2,000 Summer 2018 Reading Program 07/10/2018 $2,000 TOTAL AWARDS $9,750 Below summarizes the application submitted by the Friends of the Grand Terrace Library: Project Title: Summer Reading Program 2019 Project Activity: The Summer Reading Program (SRP) provides a fun filled environment in which children can experience through reading. The SRP is a fun program for the community (children, teens and adults) to encourage reading over the summer. Activities include reading, crafts, and education- based performances. Public Purpose: To strengthen reading and comprehension skills of participating youth and encourage reading as a lifelong habit. Amount Requested: $2,000.00 Utilization of Funds: Funds will be used for education-based performers, Summer Reading Program. RECOMMENDATION: G.9 Packet Pg. 263 Staff recommends that the City Council: 1. Approve the Community Benefit Fund (CBF) grant application for $2,000.00 to the Friends of the Grand Terrace Library. Upon City Council approval, the applicant will comply with the following, if they have not already done so: 1. Issue the City of Grand Terrace an invoice for the grant amount; 2. Ensure that the City is mentioned/included as a sponsor in any material advertising the activity or event; 3. Complete a W -9 form for reporting purposes; and 4. Submit receipts within 30 days of the event/activity showing that the funds provided were used for their original intent. Attached is the Friends of the Grand Terrace Library’s completed application. FISCAL IMPACT: Funds in the amount of $20,000.00 have been approved for the program and established in the Community Benefits Fund (Fund 61). If approved, the table below will show the balances of each category remaining in the fund: FY2018-19 Community Benefits Fund Fund No. Acct. No. Account Title Approved Budget Awarded Grants Balance as of May- 2019 Proposed Grant Awards Revised Balance 61 461- 100 Youth/School Programs $8,000 ($6,150) $1,850 $0 $1,850 61 461- 200 Art, Business & Service Org. $10,000 ($7,100) $2,900 ($2,000) $900 61 461- 300 Other Community Requests $2,000 $0 $2,000 $0 $2,000 TOTAL $20,000 ($13,250) $6,750 ($2,000) $4,750 ATTACHMENTS: • CBF Grant Awards history 06-17-2019 (XLSX) • CBF 2018-19-011 - Friends of the GT Library - Summer Reading Program 2019 (PDF) G.9 Packet Pg. 264 APPROVALS: Cynthia A. Fortune Completed 06/18/2019 2:53 PM Finance Completed 06/18/2019 2:53 PM City Attorney Completed 06/20/2019 10:26 AM City Manager Completed 06/21/2019 9:57 AM City Council Pending 06/25/2019 6:00 PM G.9 Packet Pg. 265 Title 2015-16 2016-17 2017-18 2018-19 TOTAL 2018-19 TOTAL as of May-2019 TO DATE Proposed in Jun-2019 REVISED YOUTH / SCHOOL ORGANIZATIONS Grand Terrace Community Basketball $1,136 $0 $0 $1,450 $2,586 $0 $2,586 Grand Terrace High School Football Boosters $0 $0 $0 $2,000 $2,000 $0 $2,000 Grand Terrace High School Legacy Regiment Boosters $0 $0 $0 $2,000 $2,000 $0 $2,000 Grand Terrace Little League $2,000 $0 $2,000 $0 $4,000 $0 $4,000 Grand Terrace Youth Football & Cheer $0 $4,000 $2,000 $0 $6,000 $0 $6,000 Terrace View Elementary PTA $1,000 $671 $1,517 $700 $3,888 $0 $3,888 $4,136 $4,671 $5,517 $6,150 $20,474 $0 $20,474 NON-PROFIT / SERVICE ORGANIZATIONS American Cancer Society $0 $0 $2,000 $0 $2,000 $0 $2,000 Drug Alternative Program $0 $2,000 $0 $0 $2,000 $0 $2,000 Foundation of Grand Terrace $2,350 $2,000 $1,830 $0 $6,180 $0 $6,180 Friends of Grand Terrace Library $3,750 $2,000 $2,000 $2,000 $9,750 $2,000 $11,750 Grand Terrace Lions Club $0 $620 $0 $0 $620 $0 $620 Sheriff’s Central Station Explorer Program $0 $0 $0 $2,000 $2,000 $0 $2,000 The REC Center $2,187 $310 $0 $3,100 $5,597 $0 $5,597 $8,287 $6,930 $5,830 $7,100 $28,147 $2,000 $30,147 TOTAL $12,423 $11,601 $11,347 $13,250 $48,621 $2,000 $50,621 City of Grand Terrace Community Benefit Grant Awards GRANT AW ARD HISTORY as of May 31, 2019 and Proposed Applications for Jun-2019 G.9.a Packet Pg. 266 Attachment: CBF Grant Awards history 06-17-2019 (June-2019 Award of Community Benefit Funds) G.9.b Packet Pg. 267 Attachment: CBF 2018-19-011 - Friends of the GT Library - Summer Reading Program 2019 (June-2019 Award of Community Benefit Funds) G.9.b Packet Pg. 268 Attachment: CBF 2018-19-011 - Friends of the GT Library - Summer Reading Program 2019 (June-2019 Award of Community Benefit Funds) G.9.b Packet Pg. 269 Attachment: CBF 2018-19-011 - Friends of the GT Library - Summer Reading Program 2019 (June-2019 Award of Community Benefit Funds) AGENDA REPORT MEETING DATE: June 25, 2019 Council Item TITLE: Treasurer's Report as of March 31, 2019 PRESENTED BY: Cynthia Fortune, Assistant City Manager RECOMMENDATION: Receive and file the Treasurer's Report for the period ending March 31, 2018. 2030 VISION STATEMENT: This staff report supports Goal #1, “Ensuring Our Fiscal Viability”, through the continuous monitoring of expenditure budgets, allocations and operational costs. BACKGROUND: The Treasurer’s Report of funds held as cash or invest ed by the City and the Successor Agency to the Community Redevelopment Agency should be presented to the governing body periodically. DISCUSSION: The purpose of the Treasurer’s Report is to provide the governing body with the following information: • Current cash position of the City and Successor Agency. • Identify where all cash is held and, if invested, provide information regarding the Book Value, PAR Value, Market Value, yield, and maturity: ▪ Book Value is the value of an asset as it is listed in the City’s balance sheet or statement of financial position. The book value of the City’s cash is the amount listed in the City’s bank statement as of March 31, 2019 and recorded in the City’s financial system. ▪ PAR value or face value is the value listed on an invested stock or bond. Had the City invested the cash in stocks or bonds, the PAR value would be the current value of the stocks or bonds. ▪ Market value of an investment is the amount that someone will pay for it now, or the sale price. The investment value calculates what the investment will earn and likely will be worth in the future. Had the City invested the cash in stocks or bonds, the investment would have both a PAR value and a Market value. G.10 Packet Pg. 270 ▪ Yield describes the amount in cash (in percentage terms) in the form of interest or dividends received from an investment in stocks or bonds. ▪ Maturity or maturity date refers to the payment date of a financial instrument (stock, bond, certificate of deposit (CD) at which point the principal (and all remaining interest) is due to be paid. ▪ The attached Treasurer’s Report as of March 31st indicates book, PAR and market value of total cash and investments. • Show that there are sufficient cash resources to make economic commitments for the next six months. One way the governing body can monitor the fiscal condition of the City and the Successor Agency is to review the cash position. T he common benchmarks to do this is to compare the current quarter to the prior quarter and the current quarter to the same quarter in the prior fiscal year. For the Treasurer’s Report of March 31, 2019, the quarter summary would be compared to December 31, 2018 and the annual summary would be compared to March 31, 2018. Information on the benefits of these two cash reporting compar ison periods is provided below: Quarterly Change in Cash Position: This compares the cash position at the end of a quarter to the end of the prior quarter. The cyclical nature of revenues to the City and the Successor Agency versus the relatively constant nature of expenditures is shown in a quarterly comparison. An example of this would be property tax revenue of which the majority is received in December and May versus monthly labor and utility costs. Generally, the cash position tends to decrease in the first and second quarter of a fiscal year and to increase in the third and fourth quarters. One-time revenues such as bond proceeds may also be easier to highlight first in a quarterly change report. CHANGE IN TREASURY POSITION Fiscal Year-to-Date Compared to Previous Quarter Table 1 Description Dec 31 2018 Mar 31 2019 $Change % Chg Total Cash and Investments $ 23,598,534 $ 24,989,763 $ 1,391,229 5.9% Funds with Fiscal Agent 1,765,532 1,763,016 (2,516) -0.1% Total $ 25,364,066 $ 26,752,779 $ 1,388,713 5.5% • As shown in the Table 1 above, the Cash & Investments Report indicates total cash G.10 Packet Pg. 271 and investments of $26,752,779 including funds with fiscal agent at March 31, 2019. This represents an increase of $1,388,713 in cash and investments over the previous quarter. The increase in cash is mainly due to: ➢ Property tax receipts totaling $1,629,503 were not expended during the first quarter from January-2019 through March-2019. CHANGE IN TREASURY POSITION Fiscal Year-to-Date Compared to Previous Year (Same Quarter) Table 2 Description Mar 31 2018 Mar 31 2019 $Change % Chg Total Cash and Investments $ 24,077,925 $ 24,989,763 $ 911,838 3.8% Funds with Fiscal Agent 1,761,722 1,763,016 1,294 0.1% Total $ 25,839,647 $ 26,752,779 $ 913,132 3.5% • As shown in Table 2, the current cash position compared to a year ago on March 31, 2018 increased by $913,132. The increase in cash between the quarters ending March 2018 and March 2019 was mainly attributable to the following one - time revenues: ➢ Property tax receipts totaling $1,629,503 were not all expended during the first quarter from January-2019 through March-2019. Cash Balance by Fund The attached Treasurer’s Report at March 31, 2019 shows that 65.67% of the total cash and investments ($17,569,815) are Successor Agency funds, while the remaining 34.33% or $9,182,964 are City funds. City funds include the General Fund, Child Care Fund and other Special Revenue funds such as the Gas Tax Fund and the Measure “I” Fund. Below is the list of cash balances by Fund: CASH BALANCES BY FUND 3/31/2019 TABLE 3 G.10 Packet Pg. 272 FUND NO FUND DESCRIPTION CASH BALANCES 09 CHILD CARE CENTER FUND $240,416 10 GENERAL FUND $4,506,256 11 STREET FUND $178,870 12 STORM DRAIN FUND $226,869 13 PARK FUND $44,662 14 SLESF (AB3229 COPS) $161,532 15 AIR QUALITY IMPROVEMENT FUND $30,580 16 GAS TAX FUND $94,186 17 TRAFFIC SAFETY FUND $7,970 19 FACILITIES FUND $337,423 20 MEASURE "I" FUND $1,453 21 WASTE WATER DISPOSAL FUND $611,177 22 CDBG $8,822 23 REFUNDABLE DEPOSITS TRUST FUND $525,419 25 SPRING MOUNTAIN RANCH $578,637 26 LNDSCP & LGTG ASSESSMENT DIST $10,216 46 CAPITAL IMPROVEMENTS - STREETS $1,105,382 48 CAPITAL PROJECTS FUND $1,736 49 CAPITAL PROJECTS FUND- PARKS $240,231 52 HOUSING AUTHORITY $227,493 61 COMMUNITY BENEFITS FUND $22,586 62 LIGHT UP GRAND TERRACE $0 63 GT ILLEGAL FIREWORKS ENFORCEMENT $489 64 PUBLIC SAFETY FUND $21,512 65 SENIOR BUS PROGRAM FUND $34,670 66 CAL RECYCLE GRANT ($63,450) 67 PUBLIC, EDUCATIONAL & GOVT ACCESS $58,755 68 40TH YEAR BIRTHDAY CELEBRATION FND $0 70 EQUIPMENT REPLACEMENT RESERVE FUND $997 73 ACTIVE TRANSPORTATION PRGRM FUND ($48,914) 74 HIGHWAY SFTY IMPROV PRGRM GRANT $1,941 76 ENHANCED INFRA FIN DIST (EIFD) FUND ($5,643) 95 DOG PARK ENDOWMENT FUND $20,695 TOTAL - CITY $9,182,964 SUCCESSOR AGENCY FUNDS: 31 S/A RDA OBLIGATION RETIREMENT FUND $93,514 32 S/A CAPITAL PROJECTS $365,683 36 2011 TABS A & B BOND PROCEEDS $15,347,602 SUB - TOTAL $15,806,799 36 CASH WITH FISCAL AGENT $1,763,016 TOTAL - SUCCESSOR AGENCY $17,569,815 TOTAL CASH, INVESTMENTS & CASH WITH FISCAL AGENT $26,752,779 G.10 Packet Pg. 273 The table below and the attached Treasurer’s Report also shows that the City of Grand Terrace (less Successor Agency funds) can meet its expenditure requirements for the next six months and that sufficient funds are available to meet its operating needs. CITY OF GRAND TERRACE CASH AND INVESTMENT REPORT As of March 31, 2019 Table 4 Description Amount Total Cash and Investments, City $ 9,182,964 FY2018-19 Adopted Budget $12,902,928 Less: Successor Agency Budget $ 4,130,400 Net, City budget $ 8,772,528 Cash required for six (6) months: ($8,772,728 / 2) $4,386,264 The City has sufficient cash to cover operating expenditures for a six-month period. As stated earlier in the report, the cash balances shown above are as of a certain date in time, specifically, March 31, 2019. FISCAL IMPACT: The purpose of the Treasurer’s Report is to provide information regarding the current cash and investment position of the City and the Successor Agency to the Community Redevelopment Agency. There is no fiscal impact to receiving and filing the report. ATTACHMENTS: • Treasurer's Report - Jan 2019 (XLSX) APPROVALS: Cynthia A. Fortune Completed 06/16/2019 4:28 PM Finance Completed 06/16/2019 4:29 PM City Attorney Completed 06/18/2019 3:20 PM G.10 Packet Pg. 274 City Manager Completed 06/19/2019 2:45 PM City Council Pending 06/25/2019 6:00 PM G.10 Packet Pg. 275 City of Grand Terrace & Successor Agency to the CRA of Grand Terrace Cash & Investment Report March 31, 2019 City Successor Agency Total PAR Market Yield Maturity California Asset Management Program 4,059,796 4,059,796 4,059,796 4,159,667 2.610%N/A State Treasurer- LAIF: City Account 2,792,464 2,792,464 2,792,464 2,856,439 2.436%N/A State Treasurer- LAIF: Successor Agency 14,105,697 14,105,697 14,105,697 14,428,859 2.436%N/A TOTAL FUNDS IN INVESTMENT POOLS 6,852,260 14,105,697 20,957,957 20,957,957 21,444,965 US BANK - Safekeeping- First American Treasury Fund 1,092,409 1,092,409 1,092,409 1,112,946 1.89%N/A BBVA Compass Time Deposit 94,000 94,000 94,000 94,658 0.70%6/8/2019 Bank of America - Savings Acct. - Insured 50,287 - 50,287 50,287 50,302 0.03%N/A TOTAL FUNDS OTHER INVESTMENTS 50,287 1,186,409 1,236,696 1,236,696 1,257,906 TOTAL INVESTMENTS 6,902,547 15,292,106 22,194,653 22,194,653 22,702,871 Bank of America - Gen. Operating Acct. - Collateralized 2,275,824 514,151 2,789,975 2,789,975 2,789,975 0.000%N/A CitiEscrow Client Checking Acct. (Data Ticket)4,593 4,593 4,593 4,593 0.000%N/A Bank of America - Successor Agency Acct. - Insured 542 542 542 542 0.000%N/A TOTAL CASH 2,280,417 514,693 2,795,110 2,795,110 2,795,110 INVESTMENTS 6,902,547 15,292,106 22,194,653 22,194,653 22,702,871 CASH 2,280,417 514,693 2,795,110 2,795,110 2,795,110 TOTAL CASH & INVESTMENTS 9,182,964 15,806,799 24,989,763 24,989,763 25,497,981 CASH WITH FISCAL AGENT (RESERVE FUNDS) U.S. Bank - First American Treasury Obligations 2011A TABS 0 1,286,000 1,286,000 1,286,000 1,289,858 0.30%N/A U. S. Bank - First American Treasury Obligations 2011B TABS 0 477,017 477,017 477,017 478,448 0.30%N/A TOTAL FUNDS WITH FISCAL AGENT 0 1,763,016 1,763,016 1,763,016 1,768,306 TOTAL CASH, INVESTMENTS & CASH WITH FISCAL AGENT 9,182,964 17,569,815 26,752,779 26,752,779 27,266,287 34.33%65.67%100% G.10.a Packet Pg. 276 Attachment: Treasurer's Report - Jan 2019 (Treasurer's Report as of March 31, 2019) AGENDA REPORT MEETING DATE: June 25, 2019 Council Item TITLE: Approval of Annual Appropriations Limit for Fiscal Year 2019-20 PRESENTED BY: Cynthia Fortune, Assistant City Manager RECOMMENDATION: (1) Approve the selection of the Change in Per Capita Personal Income of 3.85% as the Price Factor for the Fiscal Year 2019-120 Appropriations Limit Calculation; (2) Approve the selection of the Change in County of San Bernardino Population of 0.90% as the Population Change Factor for the Fiscal Year 2019-20 Appropriations Limit Calculation; and, (3) Adopt a Resolution Establishing Appropriations Limit of $14,637,091 for the City of Grand Terrace for Fiscal Year 2019-20. 2030 VISION STATEMENT: This staff report supports City Council Goal #1, “Ensure Ou r Fiscal Viability,” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations. BACKGROUND: On November 6, 1979, California voters approved the Gann Spending Limitation Initiative (Proposition 4) establishing Article XIIIB of the State Constitution. Article XIIIB sets limits on the amount of tax revenues that the State and most local governments can appropriate within a given fiscal year. Its basic provisions are as follows: • Each year, the State and local governments must adopt a resolution establishing an Appropriations Limit, also known as the “Gann Limit”. Fiscal Year 1984 -85 appropriations serve as the base for this limit, with adjustments being made annually to reflect increases in population, the cost of living, and financial responsibility transfers. • Only tax proceeds are subject to the limit. Charges for services, regulatory fees, grants, loans, donations and other non-tax proceeds are not subject to the limit. Exemptions are also made for voter-approved debt, debt that existed prior to January 1, 1979, and for the cost of compliance with court or Federal government mandates. G.11 Packet Pg. 277 • All tax revenues received in excess of the Appropriations Limit must be refunded to taxpayers within a two-year period. • The voters may approve an increase in the Appropriations Limit. For the increase to remain in effect, however, it must be re-approved by voters at four- year intervals. On June 5, 1990, California voters approved the Traffic Congest ion Relief and Spending Limitation Act (Proposition 111), which made various amendments to Article XIIIB of the State Constitution. The major changes, which became effective July 1, 1990, are as follows: • The change in the cost of living is defined to be either the change in California per capita personal income or the change in assessed valuation due to the addition of non-residential new construction. Previously, the change in the cost of living was defined as the lesser of the change in the U.S. Consumer Price Index or the change in California per capita personal income. • The change in population is defined as either a change in the City’s population or a change in the County’s population, whichever is greater. • “Qualified capital outlay projects” were added to the items exempted from the Appropriations Limit. Qualified capital outlay projects must have a useful life of ten or more years and a cost that equals or exceeds $100,000. • Tax revenues received in excess of the Appropriations Limit must be refunded to taxpayers only if the limit is exceeded over a two -year period. The annual calculation of the Appropriations Limit must be reviewed as part of the City’s annual financial audit. DISCUSSION: As indicated above, Proposition 111 made several changes to the method used to calculate the Appropriations Limit. The change in the cost of living (or “price factor”) is defined to be either the change in California per capita personal income or the change in assessed valuation due to the addition of no n-residential new construction. Following are the two options for the City’s FY 2019-20 Appropriations Limit calculation: 1) Change in California per capita personal income (provided by California Department of Finance): 3.85% 2) Change in Grand Terrace assessed valuation from 2019 to 2020 due to the addition of non-residential new construction: This information is not yet available from the County Assessor’s office. When the data is available, if it is greater than the change in California per capita personal income, the Appropriations Limit will be revised and resubmitted to the City Council for approval. Based on the above information, the change in California per capita personal income has been used as the price factor for the FY 2019 -20 Appropriations Limit calculation. The “population factor” to be used in calculating the Appropriations Limit is defined by G.11 Packet Pg. 278 Proposition 111 as either a change in the City’s population or a change in the County’s population, whichever is greater. Per information provided by the California Department of Finance, following are the population changes from 2019 to 2020: 1) Change in City of Grand Terrace population: 0.67% 2) Change in San Bernardino County population: 0.90% Since Option 2 (change in County of Grand Sa n Bernardino population) is greater than the City of Grand Terrace population change, it is recommended to be used as the population factor for the FY 2019-20 Appropriations Limit calculation. Exhibit A provides the calculation of the FY 2019-20 Appropriations Limit using the recommended price and population factors. Exhibit B identifies the revenues that are classified as tax proceeds and those that are classified as non -tax proceeds for Appropriations Limit purposes. Exhibit C is the Department of Fina nce letter providing the per capita personal income and population change information used in the Appropriations Limit calculation. The City’s Appropriations Limit for FY 2018-19 was $14,637,091. The recommended change factor, as allowed by Proposition 111 due to cost of living and population changes, is 1.0478. This results in a FY 2019-20 Appropriations Limit of $14,637,091. The FY 2019-20 Proposed Budget contains appropriations subject to the Appropriations Limit of $4,254,2015 which is $10,382,887 below the City’s legal limit. FISCAL IMPACT: There is no fiscal impact associated with adoption of the FY 2019 -20 Appropriations Limit, as the City is safely within its legal appropriations limit for FY 2019-20. ATTACHMENTS: • Exhibit A - FY 2019-20 Appropriations Limit calculation (PDF) • Exhibit B - Revenue Classification (PDF) • Exhibit C - Dept of Finance percapita Letter (PDF) • FY2019-20 Appropriations Limit Resolution (DOCX) APPROVALS: Cynthia A. Fortune Completed 06/16/2019 3:31 PM Finance Completed 06/16/2019 3:32 PM City Attorney Completed 06/18/2019 5:24 PM City Manager Completed 06/19/2019 2:42 PM City Council Pending 06/25/2019 6:00 PM G.11 Packet Pg. 279 APPROPRIATIONS SUBJECT TO THE LIMIT FY 2019-20 Total Revenue*7,812,234$ Less Non-Proceeds of Tax 3,558,029 A) Total Appropriations Subject to the Limit 4,254,205$ APPROPRIATIONS LIMIT B) FY 2018-19 Appropriations Limit 13,993,395 C) Change Factor**% Increase Factor Cost of Living Adjustment 3.85 1.0385 Population Adjustment 0.90 1.0090 Change Factor (1.0385 x 1.0090)1.0478 D) Increase (decrease) in Appropriations Limit 643,696$ E) FY 2018-19 Appropriations Limit (B x C)14,637,091$ REMAINING APPROPRIATIONS CAPACITY (E-A)10,382,887$ Remaining Capacity as Percent of the FY 2019-20 Appropriations Limit 70.94% *Revenues are based on FY 2019-20 Proposed Budget (all City funds excluding Successor Agency). ** State Department of Finance Percent of Change in California Per Capita Income Percent of Change in County of San Bernardino Population EXHIBIT A CITY OF GRAND TERRACE APPROPRIATIONS (GANN) LIMIT CALCULATION FISCAL YEAR 2019-20 G.11.a Packet Pg. 280 Attachment: Exhibit A - FY 2019-20 Appropriations Limit calculation (Annual Appropriations Limit for Fiscal Year 2019-20) CITY OF GRAND TERRACE APPROPRIATIONS (GANN) LIMIT PROCEEDS OF TAX CALCULATION FISCAL YEAR 2019-20 BUDGETED BUDGETED PROCEEDS NON-PROCEEDS TOTAL REVENUE SOURCE OF TAX OF TAX REVENUE TAXES Property Tax (1)3,363,090$ 3,363,090$ Sales Tax (2) 785,400 785,400 Business License Tax 91,000 91,000 FEES Franchise Fees 534,790$ 534,790 Building Fees 129,540 129,540 Planning Fees 166,800 166,800 Other Permits/Fees 490,678 490,678 Intergovernmental 345,660 345,660 Use of Money & Property 323,000 323,000 Child Care Fees - - Gas Tax/Highway User Fees 519,800 519,800 Measure "I" Transportation 193,000 193,000 SLESF (AB 3229 COPS)100,050 100,050 CDBG 47,876 47,876 Other 126,500 126,500 OPERATING BUDGET SUBTOTAL 4,239,490$ 2,977,694$ 7,217,184$ % of Total 58.74%41.26%100.00% Interest Allocation (3)14,715 10,335 25,050 CAPITAL PROJECT FUNDING Gas Tax/Measure "I"/Transfers 570,000 570,000 State Grants - - Bond Proceeds - - CAPITAL PROJECT SUBTOTAL -$ 570,000$ 570,000$ TOTAL 4,254,205$ 3,558,029$ 7,812,234$ Revenues are based on FY 2019-20 Proposed Budget (all City funds excluding Successor Agency). Notes: (1) Includes Property Tax In-Lieu of Vehicle License Fees & RPTTF Residual Receipts (2) Includes Property Tax In-Lieu of Sales Tax (3) Based on percentage of Tax/Non-Tax Proceeds EXHIBIT B G.11.b Packet Pg. 281 Attachment: Exhibit B - Revenue Classification (Annual Appropriations Limit for Fiscal Year 2019-20) May 2019 Dear Fiscal Officer: Subject: Price Factor and Population Information Appropriations Limit California Revenue and Taxation Code section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2019, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2019-20. Attachment A provides the change in California’s per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2019-20 appropriations limit. Attachment B provides the city and unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations. Population Percent Change for Special Districts Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code section 2228 provides additional information regarding the appropriations limit. Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. The code section and the California Constitution can be accessed at the following website: http://leginfo.legislature.ca.gov/faces/codes.xhtml. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits. Population Certification The population certification program applies only to cities and counties. California Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2019. Please Note: The prior year’s city population estimates may be revised. If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086. KEELY BOSLER Director By: Vivek Viswanathan Chief Deputy Director Attachment G.11.c Packet Pg. 282 Attachment: Exhibit C - Dept of Finance percapita Letter (Annual Appropriations Limit for Fiscal Year 2019-20) May 2019 Attachment A A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2019-20 appropriation limit is: Per Capita Personal Income Fiscal Year Percentage change (FY) over prior year 2019-20 3.85 B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2019-20 appropriation limit. 2019-20: Per Capita Cost of Living Change = 3.85 percent Population Change = 0.47 percent Per Capita Cost of Living converted to a ratio: 3.85 + 100 = 1.0385 100 Population converted to a ratio: 0.47 + 100 = 1.0047 100 Calculation of factor for FY 2019-20: 1.0385 x 1.0047 = 1.0434 G.11.c Packet Pg. 283 Attachment: Exhibit C - Dept of Finance percapita Letter (Annual Appropriations Limit for Fiscal Year 2019-20) Fiscal Year 2019-20 Attachment B Annual Percent Change in Population Minus Exclusions* January 1, 2018 to January 1, 2019 and Total Population, January 1, 2019 Total County Percent Change ---Population Minus Exclusions ---Population City 2018-2019 1-1-18 1-1-19 1-1-2019 San Bernardino Adelanto 0.07 34,466 34,489 35,136 Apple Valley 0.79 72,891 73,464 73,464 Barstow 0.20 23,682 23,730 24,150 Big Bear Lake 0.63 5,427 5,461 5,461 Chino 2.43 82,328 84,329 89,829 Chino Hills 1.18 83,379 84,364 84,364 Colton 0.61 54,061 54,391 54,391 Fontana 1.25 209,455 212,078 212,078 Grand Terrace 0.67 12,570 12,654 12,654 Hesperia 1.30 95,127 96,362 96,362 Highland 0.82 55,326 55,778 55,778 Loma Linda 1.41 23,922 24,259 24,335 Montclair 0.87 39,220 39,563 39,563 Needles 0.36 5,067 5,085 5,085 Ontario 2.31 174,244 178,268 178,268 Rancho Cucamonga 0.44 178,619 179,412 179,412 Redlands 0.56 71,441 71,839 71,839 Rialto 0.65 106,582 107,271 107,271 San Bernardino 0.11 217,452 217,695 219,233 Twentynine Palms 1.85 18,502 18,845 28,958 Upland 0.58 78,027 78,481 78,481 Victorville 0.78 122,052 123,010 126,543 Yucaipa 1.01 54,293 54,844 54,844 Yucca Valley 0.66 21,905 22,050 22,050 Unincorporated 0.53 303,177 304,788 312,654 County Total 0.90 2,143,215 2,162,510 2,192,203 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. G.11.c Packet Pg. 284 Attachment: Exhibit C - Dept of Finance percapita Letter (Annual Appropriations Limit for Fiscal Year 2019-20) RESOLUTION NO. 2019-______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2019-20 WHEREAS, Article XlllB of the California Constitution and Section 7910 of the California Government Code require that each year the City of Grand Terrace shall by resolution, establish an Appropriations Limit for the fiscal year; and WHEREAS, the City Council has adopted the Budget for Fiscal Year 2019-20 on June 26, 2018 and has prepared adjustments to said budget, a copy of which is on file in the Office of the City Clerk and available for public inspection, and WHEREAS, the said Budget and proposed amendments contains the estimates of the services, activities and projects comprising the budget, and contains expenditure requirements and the resources available to the City; and WHEREAS, the City’s Finance Department has prepared calculations and documentation required for and to be used in the determination of certain matters and for the establishment of an Appropriations Limit f or the City for Fiscal Year 2019-20; and WHEREAS, in accordance with Section 7910 of the California Government Code, documentation used in the determination of the appropriations limit and other necessary determinations was made available to the public in accordance with the requirements set forth therein; and WHEREAS, the City Council has considered pertinent data such as price and population factors and made such determinations as may be required by law, and has adopted this Resolution as a regularly scheduled meeting of the City Council: and WHEREAS, the Appropriations Limit for the City of Grand Terrace for Fiscal Year 2019-20 is hereby established at $14,637,091 and the total annual appropriations subject to such limitation for Fiscal Year 2019-20 are determined to be $4,254,205. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 1. That $14,637,091 is hereby established as the Appropriations Limit for the City of Grand Terrace for Fiscal Year 2019-20. 2. The City Council hereby adopts the findings and methods of calculation set forth in Exhibit A (Appropriations Limit Calculation) and Exhibit B (Proceeds of Tax Calculation). G.11.d Packet Pg. 285 Attachment: FY2019-20 Appropriations Limit Resolution [Revision 2] (Annual Appropriations Limit for Fiscal Year 2019-20) 3. The City of Grand Terrace reserves the right to revise the factors associated with the calculation of the limit established pursuant to Article XlllB of the California Constitution if such changes or revisions would result in a more advantageous Appropriations Limit in the future. BE IT FURTHER RESOLVED that this Resolution shall take effect immediately up the date of its adoption. PASSED, APPROVED AND ADOPTED by the City Council of Grand Terrace at a regular meeting held on the 25th day of June, 2019 by the following vote: __________________________________ Darcy McNaboe Mayor ATTEST: __________________________________ Debra L. Thomas City Clerk APPROVED AS TO FORM: __________________________________ Adrian R. Guerra City Attorney G.11.d Packet Pg. 286 Attachment: FY2019-20 Appropriations Limit Resolution [Revision 2] (Annual Appropriations Limit for Fiscal Year 2019-20) AGENDA REPORT MEETING DATE: June 25, 2019 Council Item TITLE: Approve Professional Services Agreement for the Grant Processing of the Highway Safety Improvement Program Grant Cycle 9 in an Amount Not to Exceed $32,415 PRESENTED BY: Alan French, Public Works Director RECOMMENDATION: 1. Approve a Professional Services Agreement between the City of Grand Terrace and Associates for Processing Obligation, E-76 and other needed documents for the HSIP Grant Program, in an amount not to exceed $32,415; and 2. Authorize the City Manager to Execute the aforementioned Agreement, subject to City Attorney approval as to form. 2030 VISION STATEMENT: This staff report supports City Council Goal #1, “Ensuring Our Fiscal Viability” and Goal #2 "Maintain Public Safety". BACKGROUND: The Highway Safety Improvement Program (HSIP), codified as Section 148 of Title 23, United States Code (23 U.S.C. §148) is one of the core federal-aid programs in the new federal surface transportation act, Fixing America's Surf ace Transportation Act (FAST), which was signed into law on December 4, 2015. The purpose of the HSIP program is to achieve a significant reduction in traffic fatalities and serious injuries on all public roads, including non-State-owned public roads and roads on tribal land. Public Works Department staff has used consultants to assist with the HSIP grant, which was released in May of 2018 with a submittal deadline in November 2018. The service request started in one fiscal year and the submittal and billi ng happened in another fiscal year. DISCUSSION: In August 2018 City staff retained a consultant to prepare a grant application on behalf of the City of Grand Terrace for proposed guardrail safety improvements on Mt. Vernon Ave., Barton Rd., Vivienda and Vista Grande. The estimated cost of these improvements is $648,300, and City staff received notice that the entire amount has been approved for the federal reimbursement grant. G.12 Packet Pg. 287 Staff finds itself in a similar situation as it did for the Cycle 8 project a nd needs to hire a consultant to prepare and submit the paperwork for the Funding Obligations, advertise the project, to design and prepare the bid documents and administer and construct the project. Part of the $648,300 the City will receive from the HSIP Grant will cover the cost for this effort. The City requested proposals from Even Brooks and Associates, Lynn Merrill and Associates, Avant-Garde and Pacific Code Compliance. Of the four, one did not respond, and the other proposals received were reviewed and scored. Of the three, Lynn Merrill and Associates received the high score. The City of Grand Terrace uses the services of Lynn Merrill and Associates to assist the City with the National Discharge Elimination Permit and has over the past few years at less than $10,000 per year. FISCAL IMPACT: Staff is requesting that City Council authorize the City Manager to execute the agreement with Lynn Merrill and Associates for $32,415 to prepare and process documents for the grant funding, reimbursement, manage the work for the project and administer the program. The City’s FY2019 -20 Approved General Fund Budget for the "Maintenance of Effort" will be used for the City’s initial costs and apply for reimbursement from the grant to repay the fund. ATTACHMENTS: • Service Proposal - HSIP Cycle 9 (Grand Terrace) (PDF) • PROPOSAL - Contract Administrator Grant - 4-10-2019 (PDF) • Lynn Merrill Grant Writing Agreement (DOCX) APPROVALS: Alan French Completed 06/19/2019 1:50 PM City Attorney Completed 06/20/2019 5:15 PM Finance Completed 06/20/2019 5:34 PM City Manager Completed 06/21/2019 9:58 AM City Council Pending 06/25/2019 6:00 PM G.12 Packet Pg. 288 TO: DATE:1/18/2019 CUSTOMER ID:Grand Terrace, CA CONTACT Hector Ramirez (626) 799-8011 TOTAL COST 1 Request for Federal Project Number (FPN) $ 1,600.00 2 RFA for Preliminary Engineering (PE) $ 2,950.00 3 Environmental Approval $ 3,750.00 4 RFA for Right of Way (ROW) $ 2,800.00 5 RFA for Construction (CON) $ 3,550.00 SUBTOTAL: $ 14,650.00 CONTINGENCIES (10%): $ 1,465.00 TOTAL: $ 16,115.00 \ Signature Name (Print) Title Date Mr. Alan French, Public Works Director/City Engineer City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 This service proposal includes the Federal-Aid Authorization Process from allocation of funds to authorization for construction. The Authorization Process includes EBA assisting the City of Grand Terrace to move the project along through authorizations from Caltrans including the allocation of funds (FPN), E-76 for PE, Environmental Approval (CE), the ROW certification and E-76 for CON. EBA will manage the project through the authorization process by obtaining a Federal Project Number (FPN), authorizations to proceed from Caltrans (PE E-76, ROW Certificate and CON E-76), and Environmental Approval (Categorical Exclusion). This Project includes upgrading guardrails at various locations in and around the City of Grand Terrace. AUTHORIZATION TO PROCEED ESTIMATED PROJECT DURATION ~1 month (Request for FPN) ~2 months (RFA for PE) ~3 months (CE) ~2 months (RFA for ROW) ~3 months (RFA for CON) • EBA will conduct a Field Review and prepare and submit Exhibits 7B and 3L. • EBA will meet with Caltrans DLAE to process the Request for FPN and provide any additional information. • EBA will prepare and submit the necessary LAPM forms and support documentation to Caltrans to obtain the E76 for Construction. • EBA will meet with Caltrans DLAE and HQ representative to process the RFA for Construction and provide any additional information PROJECT NAME WORK TASKS SCOPE OF WORK REASON FOR SERVICE PROPOSAL Authorization Process and Funds Management Highway Safety Improvement Program (HSIP) Cycle 9 Guardrail Upgrade Project: H9-08-007(08-Grand Terrace-1)Authorization Process• EBA will prepare and submit the necessary LAPM forms to Caltrans to obtain the ROW Certification. • EBA will meet with Caltrans DLAE and ROW representative to process the RFA for ROW and provide any additional information. • EBA will prepare and submit the necessary LAPM forms to Caltrans to obtain the E76 for PE. • EBA will meet with Caltrans DLAE to process the RFA for PE and provide any additional information. • EBA will prepare and submit the necessary LAPM forms to Caltrans to obtain the Environmental Approval for a Categorical Exclusion (CE). • EBA will meet with Caltrans DLAE and Environmental Engineer to process the Environmental Approval and provide any additional information. SERVICE PROPOSALEvanBrooksAssociates, Inc 2824 E Foothill Blvd Pasadena, CA 91107 626.799.8011 office G.12.a Packet Pg. 289 Attachment: Service Proposal - HSIP Cycle 9 (Grand Terrace) (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) 256 Cajon Street, Suite C Redlands, California, 92373 Office: 909-894-4425 April 10, 2019 Alan French Public Works Director City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 REF: PROPOSAL – Contract Administrator – HSIP Guardrail Upgrade Dear Mr. French: Lynn Merrill and Associates, Inc. is pleased to submit the following proposal to provide Contract Administrator services to the City for the HISP Cycle 9 Grant to upgrade existing guardrails to meet the current standards. BACKGROUND Under the Cycle 9 Highway Safety Improvement Program (HSIP), the City was awarded a grant to upgrade existing guardrails at high risk locations on Barton Road, Mount Vernon Avenue, Vista Grande Way and Vivienda Avenue in the amount of $648,300. This project is in coordination with the City of Colton. According to the Implementation Schedule submitted with the grant, the City should commence solicitation of PE consultants to prepare the PS&E documentation on or about April 1, 2019, with an expected completion of the PE Phase by February 1, 2020. Construction is slated to commence on or about July 1, 2020 and be completed by February 1, 2021. The Grant closeout should be completed by June 1, 2021. TEAM APPROACH Lynn Merrill and Associates, Inc., Consulting to Municipal Government was formed in November 2004 by Mr. Lynn Merrill after a 12-year career in municipal governments, including ten years with the City of San Bernardino. The business previously operated as a sole-proprietorship and has been in continuous operations for over 13 years Since 2004, our firm provided a range of environmental and municipal consulting services to over 18 cities and counties throughout southern California. During the last thirty years, our principal, Mr. Lynn Merrill has prepared numerous successful grant applications for both not-for-profits and municipal governments, and his efforts have included not only preparation of the application, but in many cases acting as project manager for the successful implementation of the grant funded program. For the cities of Rialto and Grand Terrace, Mr. Merrill was the primary project manager for these city’s 2009 Energy Efficiency and Conservation Block Grant. Mr. Merrill also was the lead author and project administrator of the City of Rialto’s grant application to the State Office of Historic Preservation to conduct the original Historic Resources Survey in 1987 to 1990. For the City of San Jacinto, Mr. Merrill successfully applied for several turf-removal grants, G.12.b Packet Pg. 290 Attachment: PROPOSAL - Contract Administrator Grant - 4-10-2019 (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) 256 Cajon Street, Suite C Redlands, California, 92373 Office: 909-894-4425 including one which provided $575,594 to remove and replace 287,797 of turf in a multiple use residential community and acted as the project administrator for the completion of those grants. In addition, Mr. Merrill, assisted the City of San Jacinto in obtaining a Santa Ana Watershed Protection Authority Grant to fund a conservation-based water rate study in the amount of $215,000 including coordination with the granting agency. He also prepared a grant application for Park Trail Development for the City which was not successful. In 2005-2006, Mr. Merrill coordinated grant applications for both emergency repairs and hazard mitigation for the City of La Habra Heights. Under emergency repair grants provided through the Federal Emergency Management Agency (FEMA) Mr. Merrill applied for and received funding to repair several road locations throughout the city that were damaged in the January 2005 storm events in which he supervised the grant program for the City. In addition, he successfully managed the submission of a Federal Highway Works Administration grant to stabilize and repair a section of Hacienda Road which began to experience slope failure along a section of major roadway connecting Roland Heights with La Habra/Whittier. While Public Services Director at the City of San Bernardino, Mr. Merrill prepared or oversaw the preparation and administration of a variety of environmental grants, from used oil to waste tires, which helped fund a variety of environmental outreach programs. In 2003, he prepared a Mobile Source Air Pollution Reduction Review Committee (MSRC) Grant that provided over $1.0 million in funding and allowed the City to construct an LPG fueling facility for the City’s fleet of solid waste collection vehicles at the City yard on Sierra Way. While serving as the County of Tulare’s Recycling Coordinator from May 1993 to August 1994, Mr. Merrill prepared and successfully obtained a marketing analysis grant through Cal Recycles in order to study the application of municipal compost on cotton production in the San Joaquin valley, which assisted in identifying markets for compost from municipal collection operations. In 1987, Mr. Merrill prepared a grant application for a Collection Assessment and Curation Study through the Institute for Museum Services for the Chaffey Communities Cultural Center in Upland, California after a devastating arson fire destroyed the historic church building and damaged the 9,000 artifacts. The grant assisted the Cultural Center in establishing a collection policy as well as a cataloguing and conservation programs to assist in the recovery from the fire. In addition to Mr. Merrill, we propose to utilize our Senior Consultant, Hisam Baqai to assist in the development of the scope of work for both the engineering RFP and to provide peer review for the development of the bid documents for construction. Mr. Baqai is a registered Professional Engineer/Geotechnical Engineer with over thirty years of experience in the San Bernardino and Riverside counties. WORK PLAN The proposed work is to act as the City’s Contract Administrator under this effort, in order to comply with all the requirements of the grant and the CalTrans Local Assistance Procedure Manual (LAPM). The efforts will include preparation of the required Request for Authorization to Proceed (E-76) in order to commence development of the procurement package for the Architectural and Engineering (A&E) contract, including preparation of the scope of work, assemblage of the Request G.12.b Packet Pg. 291 Attachment: PROPOSAL - Contract Administrator Grant - 4-10-2019 (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) 256 Cajon Street, Suite C Redlands, California, 92373 Office: 909-894-4425 for Proposal Package, coordination of the package through the solicitation and award process, and to provide any additional administrative support. This work will also include ensuring that the City is in compliance with all requirements of the grant as necessary. Upon award of the A&E contract, the Contract Administration effort will continue through the development of the bid documents necessary to solicit construction and installation bids from qualified contractors. Our effort will be to ensure that the work is in compliance with the grant, and that the bid documents will be prepared timely. Any and all reports required under this grant will be submitted timely to the various reviewing agencies as required, and our firm will act as liaison between the City and the A&E Consultant in order to ensure that all documentation necessary and project milestones will be met. While it will be the responsibility of the A&E Consultant to oversee the construction bid documents, we will continue to provide grant administration to ensure that all documents supporting the grant and any approvals are submitted timely. Finally, we will handle the grant close out, which we anticipate will occur from February 1, 2021 through June 30, 2021. PROPOSED COST AND FEE Due to the variable nature of this work, we are recommending a time-and-material contract, with a not-to-exceed amount of 5% of the total grant amount, or $32,415.00. Our proposed labor rates are shown below: G.12.b Packet Pg. 292 Attachment: PROPOSAL - Contract Administrator Grant - 4-10-2019 (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) 256 Cajon Street, Suite C Redlands, California, 92373 Office: 909-894-4425 We anticipate that up to 195 hours of time may be expended by our Principal in Charge. Where appropriate, we will use lower price staff to assist in document preparation and reporting. We are further proposing to bill this work on a monthly basis for the previous month’s efforts, with payment due 30-days. Copies of our resumes are provided following this. We look forward to providing this service to the City of Grand Terrace. Sincerely Lynn Merrill Principal G.12.b Packet Pg. 293 Attachment: PROPOSAL - Contract Administrator Grant - 4-10-2019 (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) 256 Cajon Street, Suite C Redlands, California, 92373 Office: 909-894-4425 >> Lynn Merrill, Principal/Program Manager Lynn Merrill and Associates, Inc., Consulting to Municipal Governments, Redlands, California EXPERIENCE As Principal of Lynn Merrill and Associates, Inc., Consulting to Municipal Governments, performed the following specific projects and service for the listed jurisdictions as it relates to Grant Programs: During the last thirty years, our principal, Mr. Lynn Merrill has prepared numerous successful grant applications for both not-for-profits and municipal governments, and his efforts have included not only preparation of the application, but in many cases acting as project manager for the successful implementation of the grant funded program. City of Rialto. Mr. Merrill was the grant author and primary project manager for the city’s 2009 Energy Efficiency and Conservation Block Grant. Mr. Merrill also was the lead author of the City of Rialto’s grant application to the State Office of Historic Preservation to conduct the original Historic Resources Survey in 1987 to 1990. City of San Jacinto. Mr. Merrill successfully applied for several turf-removal grants, including one which provided $575,594 to remove and replace 287,797 of turf in a multiple use residential community. In addition, Mr. Merrill, assisted the City of San Jacinto in obtaining a Santa Ana Watershed Protection Authority Grant to fund a conservation based water rate study in the amount of $215,000. City of La Habra Heights. Mr. Merrill successfully applied for and administered a FEMA Emergency Operations and Repair grant for the City to make various right-of-way repairs as a result of the January 2005 storm at five locations within the City. In addition, Mr. Merrill coordinated the submission of a FHWA Grant application for seismic and geological stabilization of a section of Hacienda Boulevard that experienced slope failure. Work included preparation of grant application, coordination with the various Federal and State Agencies, and final grant submission. City of San Bernardino, California -- Director, Department of Public Services. December 1998 to November 2004. Mr. Merrill prepared or oversaw the preparation of a variety of environmental grants, from used oil to waste tires, which helped fund a variety of environmental outreach programs. In 2003, he prepared a Mobile Source Air Pollution Reduction Review Committee EDUCATION Masters in Public Policy, Claremont Graduate University, Claremont, California. January 1999. Bachelor of Science, University of California, Riverside, California. March 1981. G.12.b Packet Pg. 294 Attachment: PROPOSAL - Contract Administrator Grant - 4-10-2019 (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) 256 Cajon Street, Suite C Redlands, California, 92373 Office: 909-894-4425 (MSRC) Grant that provided over $1.0 million in funding and allowed the City to construct an LPG fueling facility for the City’s fleet of solid waste collection vehicles at the City yard on Sierra Way. Overall responsibility for the general management of the City’s Refuse, Streets and Fleet Divisions. Duties include planning, budgeting and administration of the Department, including development of long-range management strategies for Infrastructure Maintenance of Streets and Fleet Operations. Under general administrative direction from the City Administrator, coordinate Department activities with the Mayor and Common Council offices, as well as other City departments. Directs activities of a staff of 177 employees with a total Department budget of $22,726,800. County of Tulare, California – Recycling Coordinator, May 1993 to August 1994 - Mr. Merrill prepared and successfully obtained a marketing analysis grant through Cal Recycles in order to study the application of municipal compost on cotton production in the San Joaquin valley, which assisted in identifying markets for compost from municipal collection operations. Chaffey Communities Cultural Center, Upland California, December 1987 to April 1990 – As president of the Cultural Center, Mr. Merrill was the primary author of a grant to the Institute of Museum Services in order to obtain funds to establish a catalogue and conservation program in order to address the fire damage to the Center’s approximately 9,000 artifacts. PUBLICATIONS From 1994 to 2008, Mr. Merrill authored over 150 magazine articles on a variety of topics for technical magazines such as Waste Age Magazine, MSW Management Magazine, On-Site Wastewater Treatment Magazine, Stormwater Magazine, Erosion Control Magazine, Grading and Excavation Contractor Magazine, and Distributed Energy Magazine. G.12.b Packet Pg. 295 Attachment: PROPOSAL - Contract Administrator Grant - 4-10-2019 (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) 256 Cajon Street, Suite C Redlands, California, 92373 Office: 909-894-4425 >>HISAM BAQAI, SENIOR CONSULTANT Lynn Merrill and Associates, Inc. Redlands, CA Senior Consultant April 2016 to Present With over 35 years of experience, including 24 years with both the Santa Ana Regional Water Quality Control Board and Lahontan Water Quality Control Boards, Mr. Baqai provides support for all aspects of NPDES Program efforts. He has developed the various regulatory programs currently in use in the SARWQCB. Since 2006, he has provided NPDES Program Management and expert technical support to the cities of Banning, Beaumont and San Jacinto, as well as various private clients. His understanding of the policies and regulations associated with NPDES programs, and his ability to guide clients through these challenges is formidable. As part of his work with various cities, he has addressed issues relating to hydrologic conditions of concern for new development as well as floodplain construction issues. Self Employed Consulting Engineer 2006 to April 2016 Providing environmental engineering and water quality management consulting services to various public and private and public clients. Prepared SSMPs for two of the San Bernardino County Special Districts including the Big Bear Lake Sewer System and the Lytle Creek Sewer Collection System For the City of Beaumont, efforts included both the SSMP Update and audits. For the City of Banning, prepared the SSMP audit and updates, and represented the City during an EPA Industrial Pretreatment Audit. California Regional Water Quality Control Board Lahontan Region Managing Engineer 1987-2005 Responsible for the direction and execution of the agency’s water quality management policies, procedures and practices relating to the South Lahontan Basin, which covers approximately a three hundred mile-long area of jurisdiction. Directed a staff of over thirty engineers, geologists, and administrative staff in implementation of water quality and toxic waste management programs. Provided oversight for the State on grant funded projects for wastewater treatment plants both new and upgrades to comply with the federal and state regulatory standards. Provided value engineering oversight for clean water funded projects to ensure that most efficient and cost-effective projects were completed. Coordinated water quality and hazardous waste management issues with other local, state and federal agencies in many tasks forces including environmental crimes task forces in for many counties in California. Local source control and pretreatment program implementation. California Regional Water Quality Control Board Santa Ana Region Chief, Regulation and Enforcement 1981-1987 Oversaw the Regional Board’s water quality programs related to core regulatory functions including clean water funded projects. Supervised up to 15 engineers and other technical staff involved in various regulatory programs including enforcement actions. G.12.b Packet Pg. 296 Attachment: PROPOSAL - Contract Administrator Grant - 4-10-2019 (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) 256 Cajon Street, Suite C Redlands, California, 92373 Office: 909-894-4425 G.12.b Packet Pg. 297 Attachment: PROPOSAL - Contract Administrator Grant - 4-10-2019 (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) AGREEMENT FOR CONTRACT SERVICES By and Between CITY OF GRAND TERRACE and LYNN MERRILL AND ASSOCIATES, INC. G.12.c Packet Pg. 298 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -2- AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND LYNN MERRILL AND ASSOCIATES, INC. This “AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND Lynn Merrill and Associates, Inc.” (herein “Agreement”) is made and entered into this 25 day of June, 2019 by and between the City of Grand Terrace, a California municipal corporation (“City”) and Lynn Merrill and Associates, Inc., a California corporation (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.” RECITALS A. City has sought, by issuance of a Request for Proposals or Invitation for Bids, the performance of the services defined and described particularly in Article 1 of this Agreement. B. Consultant, following submission of a proposal or bid for the performance of the services defined and described particularly in Article 1 of this Agreement, was selected by the City to perform those services. C. Pursuant to the City of Grand Terrace Municipal Code, City has authority to enter into and execute this Agreement. D. The Parties desire to formalize the selection of Consultant for performance of those services defined and described particularly in Article 1 of this Agreement and desire that the terms of that performance be as particularly defined and described herein. OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows: ARTICLE 1. SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, the Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to the City entering into this Agreement, Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Consultant covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be both of good quality as well as fit for the purpose intended. For purposes of this Agreement, the phrase “highest G.12.c Packet Pg. 299 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -3- professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances. 1.2 Consultant’s Proposal. The Scope of Service shall include the Consultant’s scope of work or bid which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern. 1.3 Compliance with Law. Consultant shall keep itself informed concerning, and shall render all services hereunder in accordance with, all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered. 1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Consultant’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder. 1.5 Familiarity with Work. By executing this Agreement, Consultant warrants that Consultant (i) has thoroughly investigated and considered the scope of services to be performed, (ii) has carefully considered how the services should be performed, and (iii) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Consultant warrants that Consultant has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. Should the Consultant discover any latent or unknown conditions, which will materially affect the performance of the services hereunder, Consultant shall immediately inform the City of such fact and shall not proceed except at Consultant’s risk until written instructions are received from the Contract Officer. 1.6 Care of Work. The Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City’s own negligence. G.12.c Packet Pg. 300 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -4- 1.7 Further Responsibilities of Parties. Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the service of the other. 1.8 Additional Services. City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer to the Consultant, incorporating therein any adjustment in (i) the Contract Sum for the actual costs of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Consultant. Any increase in compensation of up to ten percent (10%) of the Contract Sum or $25,000, whichever is less; or, in the time to perform of up to one hundred eighty (180) days, may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. It is expressly understood by Consultant that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services. Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other consultants. No claims for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed. 1.9 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern. ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT. 2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Thirty Two Thousand Four Hundred Fifteen Dollars ($32,415) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.8. 2.2 Method of Compensation. The method of compensation may include: (i) a lump sum payment upon completion; (ii) payment in accordance with specified tasks or the percentage of completion of the services, less G.12.c Packet Pg. 301 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -5- contract retention; (iii) payment for time and materials based upon the Consultant’s rates as specified in the Schedule of Compensation, provided that (a) time estimates are provided for the performance of sub tasks, (b) contract retention is maintained, and (c) the Contract Sum is not exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation. 2.3 Reimbursable Expenses. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by the City. Coordination of the performance of the work with City is a critical component of the services. If Consultant is required to attend additional meetings to facilitate such coordination, Consultant shall not be entitled to any additional compensation for attending said meetings. 2.4 Invoices. Each month Consultant shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of the Agreement. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed by such categories. Consultant shall not invoice City for any duplicate services performed by more than one person. City shall independently review each invoice submitted by the Consultant to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Consultant which are disputed by City, or as provided in Section 7.3, City will use its best efforts to cause Consultant to be paid within forty-five (45) days of receipt of Consultant’s correct and undisputed invoice; however, Consultant acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by Cit y for any invoice provided by the Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. 2.5 Waiver. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant. ARTICLE 3. PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. G.12.c Packet Pg. 302 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -6- 3.2 Schedule of Performance. Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by the Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty (180) days cumulatively. 3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of the Agreement pursuant to this Section. 3.4 Term. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) years from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”). ARTICLE 4. COORDINATION OF WORK 4.1 Representatives and Personnel of Consultant. The following principals of Consultant (“Principals”) are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: Lynn Merrill President (Name) (Title) It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. All personnel of Consultant, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the foregoing Principals G.12.c Packet Pg. 303 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -7- may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City. Additionally, Consultant shall utilize only competent personnel to perform services pursuant to this Agreement. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and subcontractors, if any, assigned to perform the services required under this Agreement. Consultant shall notify City of any changes in Consultant’s staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance. 4.2 Status of Consultant. Consultant shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Consultant, nor any of Consultant’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Consultant expressly waives any claim Consultant may have to any such rights. 4.3 Contract Officer. The Contract Officer shall be the City Manager or such person as may be designated by the City Manager. It shall be the Consultant’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Consultant shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement. 4.4 Independent Contractor. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Consultant’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly ind ependent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant. 4.5 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Consultant shall not contract with any other entity to perform in whole or in part the services G.12.c Packet Pg. 304 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -8- required hereunder without the express written approval of the City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Consultant, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Consultant or any surety of Consultant of any liability hereunder without the express consent of City. ARTICLE 5. INSURANCE AND INDEMNIFICATION 5.1 Insurance Coverages. The Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance which shall cover all elected and appointed officers, employees and agents of City: (a) General Liability Insurance (Occurrence Form CG0001 or equivalent). A policy of comprehensive general liability insurance written on a per occurrence basis for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than $1,000,000.00 per occurrence or if a general aggregate limit is used, then the general aggregate limit shall be twice the occurrence limit. (b) Worker’s Compensation Insurance. A policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for the Consultant against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the Consultant in the course of carrying out the work or services contemplated in this Agreement. (c) Automotive Insurance (Form CA 0001 (Ed 1/87) including “any auto” and endorsement CA 0025 or equivalent). A policy of comprehensive automobile liability insurance written on a per occurrence for bodily injury and property damage in an amount not less than $1,000,000. Said policy shall include coverage for owned, non-owned, leased, hired cars and any automobile. (d) Professional Liability. Professional liability insurance appropriate to the Consultant’s profession. This coverage may be written on a “claims made” basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of or related to services performed under this Agreement. The insurance must be maintained for at least 5 consecutive years following the completion of Consultant’s services or the termination of this Agreement. During this additional 5-year period, Consultant shall annually and upon request of the City submit written evidence of this continuous coverage. G.12.c Packet Pg. 305 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -9- (e) Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein. (f) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”. 5.2 General Insurance Requirements. All of the above policies of insurance shall be primary insurance and shall name the City, its elected and appointed officers, employees and agents as additional insureds and any insurance maintained by City or its officers, employees or agents may apply in excess of, and not contribute with Consultant’s insurance. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents and their respective insurers. Moreover, the insurance policy must specify that where the primary insured does not satisfy the self-insured retention, any additional insured may satisfy the self-insured retention. All of said policies of insurance shall provide that said insurance may not be amended or cancelled by the insurer or any party hereto without providing thirty (30) days prior written notice by certified mail return receipt requested to the City. In the event any of said policies of insurance are cancelled, the Consultant shall, prior to the cancellation date, submit new evidence of insurance in conformance with Section 5.1 to the Contract Officer. No work or services under this Agreement shall commence until the Consultant has provided the City with Certificates of Insurance, additional insured endorsement forms or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the City. City reserves the right to inspect complete, certified copies of and endorsements to all required insurance policies at any time. Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City. All certificates shall name the City as additional insured (providing the appropriate endorsement) and shall conform to the following “cancellation” notice: CANCELLATION: SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATED THEREOF, THE ISSUING COMPANY SHALL MAIL THIRTY (30)-DAY ADVANCE WRITTEN NOTICE TO CERTIFICATE HOLDER NAMED HEREIN. [to be initialed] ______________ Consultant Initials City, its respective elected and appointed officers, directors, officials, employees, agents and volunteers are to be covered as additional insureds as respects: liability arising out of activities Consultant performs; products and completed operations of Consultant; premises owned, occupied G.12.c Packet Pg. 306 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -10- or used by Consultant; or any automobiles owned, leased, hired or borrowed by Consultant. The coverage shall contain no special limitations on the scope of protection afforded to City, and their respective elected and appointed officers, officials, employees or volunteers. Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City or its respective elected or appointed officers, officials, employees and volunteers or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims. The Consultant agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which the Consultant may be held responsible for the payment of damages to any persons or property resulting from the Consultant’s activities or the activities of any person or persons for which the Consultant is otherwise responsible nor shall it limit the Consultant’s indemnification liabilities as provided in Section 5.3. In the event the Consultant subcontracts any portion of the work in compliance with Section 4.5 of this Agreement, the contract between the Consultant and such subcontractor shall require the subcontractor to maintain the same policies of insurance that the Consultant is required to maintain pursuant to Section 5.1, and such certificates and endorsements shall be provided to City. 5.3 Indemnification. To the full extent permitted by law, Consultant agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Consultant is legally liable (“indemnitors”), or arising from Consultant’s or indemnitors’ reckless or willful misconduct, or arising from Consultant’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith: (a) Consultant will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorney’s fees incurred in connection therewith; (b) Consultant will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Consultant hereunder; and Consultant agrees to save and hold the City, its officers, agents, and employees harmless therefrom; G.12.c Packet Pg. 307 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -11- (c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Consultant for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Consultant hereunder, Consultant agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorney’s fees. Consultant shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Consultant shall be fully responsible to indemnify City hereunder therefore, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes claims or liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Consultant in the performance of professional services hereunder. The provisions of this Section do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Consultant and shall survive termination of this Agreement. 5.4 Sufficiency of Insurer. Insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Risk Manager of the City (“Risk Manager”) due to unique circumstances. If this Agreement continues for more than 3 years duration, or in the event the risk manager determines that the work or services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Consultant agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the Risk Manager. ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION 6.1 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. Any and all such documents shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3) years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. In the event of dissolution of Consultant’s business, custody of the books and G.12.c Packet Pg. 308 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -12- records may be given to City, and access shall be provided by Consultant’s successor in interest. Notwithstanding the above, the Consultant shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act. 6.2 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Consultant hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Consultant is providing design services, the estimated increased or decreased cost estimate for the project being designed. 6.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”), including any electronic documents and materials, prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City in a format of the City’s choice upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Consultant will be at the City’s sole risk and without liability to Consultant, and Consultant’s guarantee and warranties shall not extend to such use, reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, Consultant with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City. 6.4 Confidentiality and Release of Information. (a) All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer. G.12.c Packet Pg. 309 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -13- (b) Consultant, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant gives City notice of such court order or subpoena. (c) If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. (d) Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION 7.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Bernardino, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of San Bernardino, State of California. 7.2 Disputes; Default. In the event that Consultant is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, the City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Consultant is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, the City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give G.12.c Packet Pg. 310 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -14- notice of the Consultant’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement. 7.3 Retention of Funds. Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Consultant to insure, indemnify, and protect City as elsewhere provided herein. 7.4 Waiver. Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take le gal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code Sections 905 et. seq. and 910 et. seq., in order to pursue a legal action under this Agreement. G.12.c Packet Pg. 311 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -15- 7.7 Termination Prior to Expiration of Term. This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon written notice to Consultant. In addition, the Consultant may terminate this Contract for cause, upon sixty (60) days’ advance written notice to City. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Consultant has initiated termination, the Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event the Consultant has initiated termination, the Consultant shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2. 7.8 Termination for Default of Consultant. If termination is due to the failure of the Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated. 7.9 Attorney’s Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees. Attorney’s fees shall include attorney’s fees on any appeal, and in addition a party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION 8.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Consultant, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. G.12.c Packet Pg. 312 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -16- 8.2 Conflict of Interest. Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Contract Officer. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. 8.3 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class. 8.4 Unauthorized Aliens. Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §§ 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Consultant hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorney’s fees, incurred by City. ARTICLE 9. MISCELLANEOUS PROVISIONS 9.1 Notices. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Grand Terrace, 22795 Barton Rd, Grand Terrace, CA 92313, and in the case of the Consultant, to the person(s) at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section. G.12.c Packet Pg. 313 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -17- 9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 9.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. 9.4 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Consultant and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. 9.5 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 9.6 Warranty & Representation of Non-Collusion. No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Nor shall any such officer or employee participate in any decision relating to the Agreement which affects her/his financial interest or the financial interest of any corporation, partnership or association in which (s)he is, directly or indirectly, interested, in violation of any State statute or regulation, including but not limited to the Political Reform Act (Government Code Sections 81000, et seq.) G.12.c Packet Pg. 314 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) -18- Consultant warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement. Consultant further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement. Consultant is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect. Consultant’s Authorized Initials _______ 9.7 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and d eliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE] G.12.c Packet Pg. 315 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) 19 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written. CITY: City of Grand Terrace, a municipal corporation ______________________________________ Darcy McNaboe, Mayor ATTEST: ______________________________________ Debra Thomas, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP ______________________________________ Adrian R. Guerra, City Attorney CONSULTANT: Lynn Merrill and Associates, Inc., a California corporation By: ___________________________________ Name: Lynn Merrill Title: President Paul Merrill Secretary Address: 256 Cajon Street, Suite C Redlands, CA 92373 Phone: 909-894-4425 Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT’S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY. G.12.c Packet Pg. 316 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2019 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. G.12.c Packet Pg. 317 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2019 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. G.12.c Packet Pg. 318 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) A-1 EXHIBIT “A” SCOPE OF SERVICES I. Consultant will perform the following Services: A. Contractor shall provide Services, as described further below, in relation to the “Project,” which is described as follows: Under the Cycle 9 Highway Safety Improvement Program (“HSIP”), the City was awarded a grant to upgrade existing guardrails at high risk locations on Barton Road, Mount Vernon Avenue, Vista Grande Way and Vivienda Avenue in the amount of $648,300. This project is in coordination with the City of Colton. According to the Implementation Schedule submitted with the grant, the City should commence solicitation of PE consultants to prepare the PS&E documentation on or about April 1, 2019, with an expected completion of the PE Phase by February 1, 2020. Construction is slated to commence on or about July 1, 2020 and be completed by February 1, 2021. The Grant closeout should be completed by June 1, 2021. B. Consultant shall act as City’s Contract Administrator for the Project, which shall include, but is not limited to ensuring that the City complies with all the requirements of the grant awarded to the City pursuant to the HSIP (“Grant”) and the CalTrans Local Assistance Procedure Manual (“LAPM”) during all stages of the Project. C. In carrying out the Services, Contractor shall also prepare the required Request for Authorization to Proceed (E-76) in order to commence development of a procurement package for an Architectural & Engineering (“A&E”) agreement, including the preparation of a scope of work, assemblage of the Request for Proposal Package, coordination of the package through the solicitation and award process, and to provide any additional and related administrative support requested by the Contract Officer. D. Upon award of the A&E agreement by the City, Consultant shall continue to provide contract administration services for the Project, which shall include, but is not limited to, the development of bid documents necessary to solicit construction and installation bids from qualified contractors (“Construction Contractors”). Such bid documents shall be delivered pursuant to the schedule developed by Consultant and approved by the City as provided in Exhibit “D”. E. Consultant shall prepare and submit all reports required by the Grant to any reviewing agencies as may be required by applicable law, including, but not limited to the Grant requirements (“Applicable Law”). F. Consultant shall be the City’s liaison between the City and the City’s A&E consultant to ensure that all necessary documentation and Project milestones will be met. G. Consultant shall, as may be required by the City, be the City’s liaison between the City and the City’s Construction Contractors. G.12.c Packet Pg. 319 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) A-2 H. Consultant shall continue to provide administration of the Grant by ensuring that all documents supporting the Grant and any required approvals are timely submitted. I. Consultant shall provide such services as necessary to ensure that the Grant is closed out in accordance with Applicable Law, which is anticipated to occur from February 1, 2021 through June 30, 2021. II. As part of the Services, Consultant will prepare and deliver the following tangible work products to the City: A. Prepare and submit all required Grant documents, including, but not limited, to the Request for Authorization to Proceed (E-76) in accordance with the schedule developed by Consultant and approved by the City pursuant to Exhibit “D”. B. Prepare the procurement package for an A&E agreement, including the preparation of a scope of work, assemblage of the Request for Proposal Package, and review of bid documents in accordance with the schedule developed by Consultant and approved by the City pursuant to Exhibit “D”. C. Prepare bid documents necessary to solicit construction and installation bids from qualified contractors for the Project in accordance with the schedule developed by Consultant and approved by the City pursuant to Exhibit “D”. D. Prepare such other documents as may be necessary to carry out the Services under this Agreement in accordance with the schedule developed by Consultant and approved by the City pursuant to Exhibit “D”. III. In addition to the requirements of Section 6.2, during performance of the Services, Consultant will keep the City appraised of the status of performance by delivering the following status reports: A. Monthly written status report to the Contract Officer and the City’s Director of Public Works. B. Such other status reports as may be requested by the Contract Officer or the City’s Director of Public Works from time to time. IV. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City. G.12.c Packet Pg. 320 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) B-1 EXHIBIT “B” SPECIAL REQUIREMENTS (Superseding Contract Boilerplate) None. G.12.c Packet Pg. 321 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) C-1 EXHIBIT “C” SCHEDULE OF COMPENSATION I. Consultant shall perform the Services, as provided in Exhibit “A” on a time-and material basis at the following rates: II. The City will compensate Consultant for the Services performed upon submission of a valid invoice. Each invoice is to include: A. Line items for all personnel describing the work performed, the number of hours worked, and the hourly rate. B. Line items for all materials and equipment properly charged to the Services. C. Line items for all other approved reimbursable expenses claimed, with supporting documentation. D. Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services. III. The total compensation for the Services shall not exceed the Contract Sum as provided in Section 2.1 of this Agreement. G.12.c Packet Pg. 322 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail) D-1 EXHIBIT “D” SCHEDULE OF PERFORMANCE I. Consultant shall commence the Services, as described in Exhibit “A,” within 7 days of the City’s issuance of a notice to proceed, provided that the notice of proceed shall not be issued until the City has received a evidence of Consultant’s City business license, certificates of insurance evidencing insurance required by this Agreement, and any other documentation required by the City prior to commencement of the Services under this Agreement. Consultant shall perform all Services timely in accordance with the schedule to be developed by Consultant and subject to the written approval of the Contract Officer. II. Consultant shall complete all Services under this Agreement by June 1, 2021. III. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2. G.12.c Packet Pg. 323 Attachment: Lynn Merrill Grant Writing Agreement [Revision 1] (Award Contract for Grant Administration for HSIP Cycle 9 Guardrail)