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06/28/2011 PENDING CRA APPROVAL CITY OF GRAND TERRACE I COMMUNITY RED VELOPMENT AGENCY MINUTES REGULAR MEETING -JUNE 28,2011 A regular meeting of the Community Redevelopment Agency, City of Grand Terrace, was held in the Council Chambers,Grand Terrace Civic Center,22795 Barton Road,Grand Terrace,California, on June 28, 2011 at 6:00 p.m. PRESENT: Walt Stanckiewitz, Chairman Lee Ann Garcia,Vice-Chairman Darcy McNaboe, Agency Member Bernardo Sandoval,Agency Member Gene Hays, Agency Member Betsy M. Adams, City Manager Brenda Mesa, City Clerk Bernie Simon, Finance Director Joyce Powers, Community& Economic Development Director Richard Shields, Building& Safety Director John Harper, City Attorney Ed Finneran, San Bernardino County Sheriff s Department Rick McClintock, San Bernardino County Fire Department ABSENT: None CONVENE COMMUNITY REDEVELOPMENT AGENCY AT 6:00 P.M. 1. APPROVAL OF 06-14-2011 MINUTES CRA-2011-37 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY AGENCY MEMBER MC NABOE, CARRIED 4-0-0-1 (AGENCY MEMBER HAYS ABSTAINED),to approve the June 14, 2011 Minutes. 2. APPROVAL OF A CONSTRUCTION CHANGE ORDER FOR ADDITIONAL LANDSCAPING IMPROVEMENTS TO MICHIGAN STREET AND BARTON ROAD CRA-2011-38 MOTION BY VICE-CHAIRMAN GARCIA, SECOND BY AGENCY MEMBER HAYS, CARRIED 5-0, to approve a construction change order above the original 10%change order authority in the amount of$22,460.00(5.6%)to install additional landscaping improvements along Michigan Street south of Barton Road and on Barton Road; and appropriate an additional $22,460.00 to the project from the Agency's undesignated, available fund balance. Community Redevelopment Agency Minutes June 28,2011 Page 2 3. ADOPTION OF FY 2011-12 COMMUNITY REDEVELOPMENT AGENCY BUDGET CRA-2011-39 MOTION BY AGENCY MEMBER HAYS, SECOND BY AGENCY MEMBER MC NABOE, CARRIED 5-0, to adopt the proposed FY 2011-12 Budget and Resolution with the deletion of paragraph 5, which is a duplicate. 4. CLOSED SESSION-CONFERENCE WITH REAL PROPERTY NEGOTIATORS (GOVERNMENT CODE SECTION 54956.8) 1. Property- APN 1167-231-02 (22273 Barton Road) Agency Negotiator- Betsy M. Adams Owner- Jo K. Stringfield Under Negotiation- Property Appraisal to Establish Value 2. Prop=- APN 0275-242-10 & 0275-242-11 Agency Negotiator- Betsy M. Adams Owner- Redevelopment Agency Under Negotiation- Property Appraisal to Establish Value 3. Prop=- 1167-181-12 & 1167-181-13 Agency Negotiator- Betsy M. Adams Property Negotiator- Jim Towers, Towers and Associates Under Negotiation- Property Appraisal and Negotiations to Purchase 4. Property- 1167-151-61, 1167-151-62, 1167-151-68, 1161-151-71, 1167-161-03, 1167-161-04 Agency Negotiator- Betsy M. Adams Property Negotiator-Allan Mackenzie Under Negotiation- Terms of Memorandum of Understanding Mayor Stanckiewitz announced that the Agency met in Closed Session for conference with real property negotiators. Council authorized staff to solicit proposals for appraisals on properties listed 1 through 3 above. There is no reportable action on property number 4 above. Community Redevelopment Agency Minutes June 28,2011 Page 3 Chairman Stanckiewitz adjourned the Community Redevelopment Agency Meeting at 9:20 p.m., until the next CRA/City Council Meeting that is scheduled to be held on Tuesday,July 12,2011 at 6:00 p.m. SECRETARY of the Community Redevelopment Agency of the City of Grand Terrace CHAIRMAN of the Community Redevelopment Agency of the City of Grand Terrace CITY OF GRAND TERRACE PENM CITY COUNCIL APPROVAL CITY COUNCIL MINUTES REGULAR MEETING -JUNE 28,2011 A regular meeting of the City Council of the City of Grand Terrace was called to order in the Council Chambers,Grand Terrace Civic Center,22795 Barton Road,Grand Terrace,California,on June 28, 2011 at 6:00 p.m. PRESENT: Walt Stanckiewitz, Mayor Lee Ann Garcia, Mayor Pro Tern Darcy McNaboe, Councilmember Bernardo Sandoval, Councilmember Gene Hays, Councilmember Betsy M. Adams, City Manager Brenda Mesa, City Clerk Bernard Simon, Finance Director Joyce Powers, Community& Economic Development Director Richard Shields, Building& Safety Director John Harper, City Attorney Ed Finneran, San Bernardino County Sheriff's Department Rick McClintock, San Bernardino County Fire Department ABSENT: None The City Council meeting was opened at 6:00 p.m. with an Invocation by Mayor Pro Tern Lee Ann Garcia, followed by the Pledge of Allegiance led by Lt. Nina Jamsen. ITEMS TO DELETE -None SPECIAL PRESENTATIONS A. Introduction ofNew Sheriff's Lt.Steve Dorsey/Recognize Outgoing Lt.Nina Jamsen Captain Tesselaar, San Bernardino County Sheriff's Department,introduced Lt. Steve Dorsey who will replace Lt. Jamsen in the City of Grand Terrace. Mayor Stanckiewitz presented a Certificate of Recognition to outgoing Lt. Nina Jamsen for outstanding service to the City of Grand Terrace from February 28, 2009 to June 17, 2011. The Council Members thanked Lt. Jamsen for the outstanding service she provided to the City of Grand Terrace. B. Recognition of Azure Hills Volunteers for Wall Painting Project Council Minutes 06/28/2011 Page 2 Council Member McNaboe presented a Certificate of Recognition to Ryan Stephens representing the group of volunteers from Azure Hills Seventh Day Adventist Church for the wall painting project on June 5, 2011. Mayor Stanckiewitz presented a Certificate of Recognition to Jo Ann Johnson representing the Foundation of Grand Terrace for the wall painting project on June 5, 2011. Mayor Stanckiewitz read a list of volunteers who participated in the Wall Painting Project. C. Chamber of Commerce Business of the Month Sally McGuire, President of the Chamber of Commerce, announced and that the Business of the Month is Tetley Law Offices. CONSENT CALENDAR CC-2011-50 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEMBER SANDOVAL,CARRIED 5-0,to approve the following Consent Calendar Items with the removal of 3C: 3A. Approve Check Register No. 06/28/2011 3B. Waive Full Reading of Ordinances on Agenda 3D. Historical & Cultural Activities Committee Minutes of 05-02-2011 3E. Community Emergency Response Team(C.E.R.T.) Minutes of 04-05-2011 and 05-03-2011 3F. Authorization to Reject All Bids for the Retrofit Lighting of Various City Buildings and Facilities, (Request for Bid# 11-02) 3C. Approval of Minutes of 06/14/2011 CC-2011-51 MOTION BY COUNCILEMBER MC NABOE,SECOND BY MAYOR PRO TEM GARCIA, CARRIED 4-0-0-1 (COUNCILMEMBER HAYS ABSTAINED), to approve the Minutes of 06/14/2011. PUBLIC COMMENT Nori Sagomonian-Mejia, Kingston Street, shared an exercise with the City Council on Compassionate Leadership. Bobbie Forbes,Burns Ave.,encouraged everyone to take advantage of the HEAL Program, which provides free Spay/Neuter services. She has kittens that were saved from the storm drain if anyone is interested. She has seen an increase in crime in her neighborhood, she Council Minutes 06/28/2011 Page 3 encouraged everyone to pay attention to their surroundings. She stated that she and the community will miss the employees that are being layed off and encouraged everyone to have patients with those employees who are left. Jeffrey McConnell,Walnut Ave.,commercial trucks in his neighborhood are causing damage to the power poles and the street. He requested that the city do more to keep the trucks out. COUNCIL REPORTS Councilmember Gene Hays,reported that crime in Grand Terrace has gone down even with a bad economy. He indicated that the idea that when the economy is bad crime will increase may be a myth based on crime statistics for the City of Grand Terrace. Councilmember Bernardo Sandoval,requested that staff trend crime statistics monthly. He felt that Grand Terrace Community Day was a great event. He attended the Chamber of Commerce Installation Dinner and it was a great event. He indicated that although we are faced with tough budget decisions,he hopes the budget cuts are not permanent. The Council, with staff, is working to create new revenues and a sustainable budget. Councilmember Darcy McNaboe,She had a tour of the new Stater Brothers on June 17`h and was impressed with the amenities they will offer and the energy saving features. The store is scheduled to open August 24`''. She reported that the Community Day was enjoyable and well attended. She thanked the volunteers. The Chamber of Commerce Installation Dinner was well attended. She reported that the Chamber announced two new programs. A 3/50 program to encourage residents to shop locally and a partnership with the San Bernardino County Workforce Development Center to find out what business are needed locally. She commented that the Council priorities that are on the city website have not been updated since 2009 and requested that the information be taken down until new priorities are established. She announced that the Lions Club will have a Sight Clinic on July 30th. Ma, o�yor Pro Tem Lee Ann Garcia,the Chamber of Commerce Installation Dinner was a great event. Jack Brown was the speaker and he announced special programs for Grand Terrace residents for the opening of the new Stater Bros. The Chamber of Commerce is doing an excellent job of promoting our businesses. Grand Terrace Community Day was a great event and it is her hope that the event continues. She encouraged the residents to stay engaged and staff to keep website updated. State budget decisions will impact our city but we will weather them together. She feels that we need better signs to keep trucks off our streets. She requested that the Sheriff's Department put on quarterly informational meetings and put information in local papers so the residents know what is happening in their community. She requested that the list of Cooling Centers from Edison be placed on the city website. Firework information is on the website, she reported that fines will be issued to individuals who use fireworks in banned areas. Council Minutes 06/28/2011 Page 4 Rick McClintock, San Bernardino County Fire, reported that fines will be issued as well as cost recovery. Mayor Stanckiewitz,Thanked the Chamber of Commerce for their work on the Installation Dinner indicating that they had several elected officials in attendance. He thanked all of the volunteers who worked on Grand Terrace Community Day. He announced that the San Bernardino office of the DMV will be closed for renovation from October 2011 to March 2013 and requested that the information be placed on the website. He reported that he has been contacting the state legislators regarding the State Budget vote and encouraging them to save Redevelopment. PUBLIC HEARINGS -None UNFINISHED BUSINESS -None NEW BUSINESS 8A. Adoption of FY 2011-12 City Budget CC-2011-52 MOTION BY COUNCILMEMBER MC NABOE, SECOND BY COUNCILMEMBER SANDOVAL, CARRIED 5-0, to approve the proposed FY 2011-12 Budget and Resolution with the understanding that staff will hold written communication to the Sheriff s Department pending decisions from the State on the COP Grant funding. CLOSED SESSION 9A. Public Employment- City Attorney - Pursuant to GC54957 9B. Labor Negotiations Pursuant to GC94957.6 Mayor Stanckiewitz announced that the Council met in Closed Session to discuss Public Employment- City Attorney-Pursuant to GC54957 and the City Council will continue the review process and bring this item back at a later date Mayor Stanckiewitz announced that the Council met in Closed Session to discuss Labor Negotiations per GC54957.6 and there was no reportable action taken. Council Minutes 06/28/2011 Page 5 Mayor Stanckiewitz adjourned the meeting at 9:20 p.m.,until the next City Council Meeting which is scheduled to be held on Tuesday, July 12, 2011 at 6:00 p.m. CITY CLERK of the City of Grand Terrace MAYOR of the City of Grand Terrace CALI'FORNIA AGENDA REPORT MEETING DATE: June 28, 2011 Council Item ( ) CRA Item ( X ) TITLE: Approval of a Construction Change Order for Additional Landscaping Improvements to Michigan Street and Barton Road PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: 1. Approve a construction change order above the original 10% change order authority in the amount of $22,460.00 (5.6%) to install additional landscaping improvements along Michigan Street south of Barton Road and on Barton Road. 2. Appropriate an additional $22,460.00 to the project from the Agency's undesignated, available fund balance. BACKGROUND: On April 12, 2011, the Agency Board awarded a construction contract to Lee and Stires, Inc. to construct public improvements within the Michigan Street, Barton Road and La Paix Street rights-of-way. The work is underway and scheduled to be completed by August 1, 2011, including the new traffic light installation on Barton Road. The original contract award of $400,431.41 also provided for a 10% construction contingency of $40,043.14. The following change orders have been approved by staff based on unplanned construction items: 1. Additional charge to expedite Edison street light removal $ 1,214.40 2. Night work to relocate Miguel's backflow $ 5,911.16 3. Relocation of irrigation conduits not shown on "as-built' plans $ 7,456.17 4. Modifications to Miguel's driveway approach and "pork shop" median to preclude left turns from west driveway on to Barton Rd. $11,745.76 5. Install geo fabric in wet subgrade to prevent pavement cracking $ 1,520.00 TOTAL $27,847.49 The remaining amount of the 10% contingency is $12,195.65. Staff is not recommending use of these remaining funds, but to reserve them for any unforeseen CRA AGENDA ITEM NO. 2 occurrences during installation of the traffic light. Any funds not used would then be available for other projects. DISCUSSION: At the time construction was bid, vertical landscaping, such as bushes and trees, adjacent to the new northbound right turn lane on Michigan Street at Barton Road was not included. The graded pads on the adjacent private property will be hydro-seeded and maintained until developed. To physically improve the right-of-way area, staff has discussed adding enhanced landscaping with the private developer, who has agreed to provide water service and maintenance. The proposed landscaping enhancements include low-water street trees and several types of shrubbery including; kangaroo paw, lantana, Indian hawthorn, and coast rosemary, and would be installed north and south of the Commerce Way extension on the east side of Michigan Street. The cost for these improvements, with irrigation, is $17,345.00, which is a prevailing wage public project. Additional landscaping enhancements are also recommended for Barton Road westerly to the Auto Zone property, which is now in poor condition. New irrigation will be connected to the Stater Bros. project irrigation. The estimated total cost is $5,115.00, for a total change order of $22,460.00. Staff is recommending completion of these additional items by Lee and Stires to improve the streetscape appearance of the area. FISCAL IMPACT: Staff requests an additional budget appropriation to account 32-600-323-002 of $22,460.00 from available, undesignated Redevelopment Fund Balance Reserve (non- housing). These funds are not included in the Agency's 2010-11 or 2011-12 budget. The Finance Director has confirmed the availability of the funds and the Executive Director has pre-approved the appropriation subject to the Agency's approval. Respectfully submitted: lfLtY44 LAML Powers, Community and Economic Development Director Manager Approval: Betsy . Adams, Executive Director/City Manager CALI'FORNIA AGENDA REPORT MEETING DATE: June 28, 2011 Council Item ( ) CRA Item (X ) TITLE: FY 2011-12 Community Redevelopment Agency Budget Adoption PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION: Adoption of FY 2011-12 CRA Budget BACKGROUND: On June 14, 2011, the City Council/Agency Board conducted a workshop review of the Preliminary Budget for the fiscal year beginning July 1, 2011 through June 30, 2012. At that same time the City Manager also presented eight budget reduction recommendations to City Council/Agency Board for consideration along with other policy considerations. Council/Agency Board directed staff to incorporate budget reduction recommendations one through six for a second budget hearing that was conducted at a special meeting on June 21, 2011. On June 21, 2011, the City Manager also requested Council/Agency Board to consider an amended budget reduction recommendation seven and recommendation eight. Council directed Staff to present a budget on June 2eh for adoption that included all recommendations, including the revised recommendation to remove budget recommendation seven. DISCUSSION: Budget reduction recommendations one to eight resulted in two items affecting the Agency and resulted in savings of $57,439 to the Community Redevelopment Agency budget as follows: 1. N/A 2. N/A 3. Defund Management Analyst Position in Community Development-$37,928 4. N/A 5. Defund Deputy City Clerk Position -$19,511 6. N/A 7. (removed) 8. N/A CRA AGENDA ITEM NO. In addition, The budget reduction recommendations resulted in a credit in the overhead cost allocation to the Agency in the amount of$79,104. The above changes are now reflected in the FY 2011-12 Community Redevelopment Agency Budget consisting of the Capital Projects Fund, Debt Service Fund, CRA Low Mod Income Housing Fund and the CRA Trust Fund as follows: FY 2011-12 Budget Revenue Recap— TABLE 1 FY 2010-11 Prelim FY Budget Other Prelim FY Revised 2011-12 Reduc- Changes 2011-12 Budget -tions 06/28/11 #1 to#8 Capital Project 1,124,630 1 837,000 0 0 1,837,000 Debt Service 7,062,662 6,052,858 0 0 6,052,858 Low Mod Hs . 1,650,715 1,280,560 0 0 1,280,560 CRA Trust 0 0 0 0 0 Total Revenue 9,838,0071 9,170,418 01 0 9,170,418 FY 2011-12 Budget Expenditure Recap— TABLE 2 FY 2010-11 Prelim FY Budget Other Prelim FY Revised 2011-12 Reduc- Changes 2011-12 Budget -tions 06/28/11 #1 to# 8 Capital Project 31757,291 1,818,070 49,635 62,891 1,705,544 Debt Service 6,408,555 7,082,960 0 113,285 7,196,245 Low Mod Hs . 1,458,010 1,267,687 7,804 129,498 1,130,385 CRA Trust 0 241,500 0 0 241,500 Total 11,623,856 10,410,217 (57,439) (79,104) 10,273,674 Expenditure FY 2011-12 Net Budget TABLE 3 Revenue Expenditure Net Budget Prelim FY Prelim FY Prelim FY 2011-12 2011-12 2011-12 06/28/11 06/28/11 06/28/11 Capital Project 1,837,000 1,705,544 131,456 Debt Service 6,052,858 7,196,245 1,143,387 Low Mod Hs . 1,280,560 1,130,385 150,175 CRA Trust 0 241,500 241,500 Total 9,170,418 1 10,273,674 1,103,256 Total overall CRA Budget for FY 2011-12 consists of proposed expenditures of$10,273,674 supported by estimated revenues of $9,170,418 and use of fund balance reserve as needed. The FY 2011-12 combined CRA Budget results in a net budget deficit of ($1,103,256). Changes in Fund Balance Reserves are calculated as follows: FY 2011-12 Estimated Revenues and Expenditures and CHANGES IN AVAILABLE FUND BALANCE RESERVE — FY 2011-2012 —TABLE 4 Fund Beginning Revenue Expend. Reservations Ending Fund and Available Balance Designations Fund Balance Capital Project 0 1,837,000 1,705 544 0 131,456 Debt Service 1,251,673 6,052,858 7,196,245 0 108,286 Low Mod Hs . 0 1,280,560 1,130,385 0 150,175 CRA Trust 0 0 0 01 0 Total 1,251,6731 9,170,418 10,032,174 01 3,424,862 CHANGES IN DESIGNATED FUND BALANCE RESERVE — FY 2011-2012—TABLE 5 CRA Funds Revenue Expend. Debt Service Bond debt & 2,168,335 0 0 2,168,335 Fund Other Debt Service Pass through 1,836,429 0 0 1,836,429 Debt Service SERAF Loan <448,636> 0 0 <448,636> Low Mod Pass through 459,107 0 0 459,107 Low Mod LM ro'ect 417,946 0 0 417,946 CRA Trust CRA Econ. 1,207,500 0 (241,500) 966,000 Fund Agreement Total CRA 5,540,681 0 (241,500) 5,299,181 Desig Funds CRA Bond CRA Projects 18,528,672 0 0 18,528,672 Proceeds- Total CRA— 24,069,353 0 (241,500) 23,827,853 includg. Bond Proceeds FISCAL II"ACT: Adoption of CRA Budget will result in: • CRA Capital Project Fund Revenue $1,837,000 • CRA Capital Project Fund Expenditures and Transfer Out $1,705,544 • Change in CRA Capital Project Fund Balance Reserve of$131,456 ❖ CRA Debt Service Fund Revenue $6,052,858 ❖ CRA Debt Service Fund Expenditures and Transfer Out $7,196,245 ❖ Change in CRA Debt Service Fund Balance Reserves of($1,143,387) ✓ CRA Low Mod Income Housing Fund Revenue/Transfer in of$1,280,560 ✓ CRA Low Mod Income Housing Fund $1,130,385 ✓ Change in CRA Low Mod Income Housing Fund Reserves of 150,175 ❖ Overall CRA combined Revenue and Transfer in of$9,170,418 ❖ Overall CRA combined Expenditures and Transfer out of$10,273,674 ❖ Overall Change in CRA combined Fund Balance Reserve of($1,103,256 ❖ Projected Overall available CRA combined Fund Balance Reserve at 6-30-2012 of $3,424,862 ❖ Projected Overall Designated CRA combined Fund Balance Reserve at 6-30-2012 of $23,827,853. Respectfully submitted: Bernie Simon, Finance Director Manager Approval: Betsy WAdaes, City Manager ATTACHMENTS: FY 2011-12 CRA Budget Resolution 1 RESOLUTION NO. 2011- A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE,CALIFORNIA,ADOPTING A BUDGET FOR FISCAL YEAR 2011-12 WHEREAS,the Community Redevelopment Agency of the City of Grand Terrace(the Agency)Board of Directors desire to adopt a budget for the subsequent fiscal year using estimated revenues and proposed expenditures;and WHEREAS,the Agency operates on a fiscal calendar year beginning on July 1' of each year and ending on June 3&of the next year, and WHEREAS,the source of redevelopment revenue is primarily property tax increment by virtue of the establishment of the agency and redevelopment project area for which such funds would have otherwise been allocated to other overlapping taxing agencies; and WHEREAS,the staff has presented an operating and capital budget containing the redevelopment funds,to meet the needs of the citizens of the City of Grand Terrace, the objectives of redevelopment plan, and to improve the supply and preservation of low and moderate income housing in the project area and in the City;and WHEREAS,the staff has presented an operating and capital budget containing the redevelopment funds, to meet the needs of the citizens of the City of Grand Terrace, the objectives of redevelopment plan, and to improve the supply and preservation of low and moderate income housing in the project area and in the City;and WHEREAS,a second reading of an Ordinance Adopting Amendment No. 6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project Area was approved and adopted on May 1 lth, 2010, which amended the effectiveness dates for both the Original Project Area and the Added Project Area to September 27, 2022 and July 14, 2024, respectively; and WHEREAS,the Agency adopted Resolution CRA 2011- on April 26, 2011 when the Board determined that it may not have the necessary funds to pay the required SERAF payment of$448,636 on May 3, 2011 from non-housing redevelopment funds and resolved to borrow the funds at no interest from the CRA Debt Service Fund. Under the Health and Safety Code,the Agency has a time period of five years to repay such loan to the CRA Low Mod Income Housing Fund; and WHEREAS,on April 12, 2011,the Community Redevelopment Agency and the City of Grand Terrace entered into a loan agreement acknowledging that the City owes the Community Redevelopment Agency of Grand Terrace $3,388,091 and that the City desires to make annual payments to the Agency subject to available funds of the City in 2 each fiscal year. No payment is due in fiscal year 2011-12 and the next payment is due July 1, 2012; and WHEREAS,the basis of the proposed agency budget is the continuance of the agency itself to meet the needs of the citizens of the City of Grand Terrace and legal requirements for redevelopment agencies under the Health and Safety Code; and, NOW THEREFORE,the Board of Directors of the Community Redevelopment Agency of Grand Terrace does hereby resolve, declare, determine, and order as follows: Section 1. The budget for Fiscal Year 2011-12, a copy of which has been filed in the City Clerk's office, is hereby adopted with projected beginning (combined)CRA fund balance reserves of$24,317,770,total expenditures of$10,273,674, including transfers-out, all to be funded by estimated revenues of$_9,170,418 and the use of available CRA Low Mod Fund Balance Reserve. A summary of the CRA Budget by fund is referenced in "Exhibit A" Section 2. The Agency board authorizes the Agency Director to make budget adjustments to the adopted budget to reallocate appropriations between departmental activities. Only the Agency Board,by motion and affirmative majority vote, by minute action or by resolution, may make increases and decreases in estimated fund revenues and fund appropriations. Section 3. Designate Reserves as indicated on Schedule A. Section 4. No repayment of the CRA Low Mod Fund loan for the FY 2010-11 SERAF payment will be made in FY 2011-12. The Agency will look to repay the five year loan over the next four years. PASSED, APPROVED, AND ADOPTED this 28th day of June, 2011. Attest: Secretary of the Grand Terrace Community Chairman of the Grand Terrace Redevelopment Agency Community Redevelopment Agency 3 Approved as to form; Agency Counsel 1 RESOLUTION NO. 2011- A RESOLUTION OF THE COWAUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE,CALIFORNIA,ADOPTING A BUDGET FOR FISCAL YEAR 2011-12 "EXHIBIT A" FY 2011-12 Estimated Revenues and Expenditures and CHANGES IN AVAILABLE FUND BALANCE RESERVE — FY 2011-2012— Fund Beginning Revenue Expend. Reservations Ending Fund and Available Balance Designations Fund Balance Capital Project 0 1,837 000 1,705,544 0 131,456 Debt Service 1,251,673 6,052,858 7,196,245 0 108,286 Low Mod Hs . 0 1,280,560 1,130,385 0 150,175 CRA Trust 01 0 1 0 0 0 Total 1 1,251,6731 9,170,418 1 10,032,174 0 3,424,862 CHANGES IN DESIGNATED FUND BALANCE RESERVE — FY 2011-2012— CRA Funds Revenue Expend. Debt Service Bond debt& 2,168,335 0 0 2,168,335 Fund Other Debt Service Pass through 1,836 429 0 0 1,836 429 Debt Service SERAF Loan <448,636> 0 0 <448,636> Low Mod Pass through 459,107 0 0 459,107 Low Mod LM project 417,946 0 0 417,946 CRA Trust CRA Econ. 1,207,500 0 (241,500) 966,000 Fund Agreement Total CRA 5,540,681 0 (241,500) 5,299,181 Desig Funds CRA Bond CRA Projects 18,528,672 0 0 18,528,672 Proceed Total CRA— 24,069,363 0 (241,500) 23,827,853 includg. Bond Proceeds pEM MrG CITY COUNCIL APPROVAL CALI'FORNIA AGENDA REPORT MEETING DATE: June 28, 2011 Council Item (X) CRA Item ( ) TITLE: Check Register No. 06-28-2011 PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION: Approve BACKGROUND: The Check Register for June 28, 2011 is presented in accordance with Government Code §37202. The attached index to the warrant register is a guideline account list only and is not intended to replace the voluminous list of accounts used by the City and CRA. Expenditure account number formats are XX-XXX-XXX [Fund-Depart-General Account]. Expenditures may be made from trust/agency accounts (fund 23-xxx-) or temporary clearing accounts which do not have budgetary considerations. DISCUSSION: A total of $865,391.16 in accounts payable checks was issued during the period for services, reimbursements, supplies and contracts and are detailed in the attached Check Register. Payroll costs for the period amounted to $72,126.18 and are summarized below. Some of the non-routine items include: 66874 J.Z.'s Party 2011 Community Day Equipment Rental $2,757.55 Charm Trust Account: 23-200-12-00 66879 Mister Twister 2011 Community Day Balloon Entertainment $210.00 Balloon Enter. Trust Account: 23-200-12-00 66896 Municipal Municipal Code Supplement $5,910.12 Code Corp 66914 WIldan Winter Storm Damage— Barton Road $420.00 Account: 10-190-702-001-000 COUNCIL AGENDA ITEM NO. Some the larger items include: 668662 Zions Bank June HVAC Payment $14,409.50 66863 City of Colton Sewer Connection Fees 4/08-11/10 $320,400.00 66875 Chaparral 2009 Yamaha Rhino ATV-Homeland Security $12,602.00 Motorsports Grant 66877 City of Colton Sewer Connection Fees 4/08-11/10 Correction $19,800.00 66880 Albert Webb Multiple Invoices, Services Provided through May $29,250.01 Associates Barton Plaza/Town Square 66883 City of Colton April & May Wastewater Treatment Advance $198,000.000 66902 Rosenow General Fund Sustainability Model Project/ $31,035.00 Spevacek Grp Professional Services-Pass Through Error 66905 S. B. County June Law Enforcement Services $166,993.00 Sheriff Payroll costs processed for period ending June 10, 2011: Date Period Payroll and payroll costs 06/10/11 Biweekly $72,126.18 FISCAL IMPACT: All disbursements are made in accordance with the adopted budget for FY 2010-11, Respectfully submitted, Bernie Simon Finance Director Manager Approval: Betsy*A. Adams City Manager ATTACHMENTS: Check Register—June 28, 2011 vchlist Voucher List Page. 1 06/21/2011 4:23:13PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66859 6/7/2011 011194 AMERICAN FIDELITY ASSURANCE CO A670168 June EMP PAID ACCIDENT/SUPP LIFE/SUPP STD INS 23-250-20-00 54546 Total. 545.46 66860 6/7/2011 011195 AMERICAN FIDELITY ASSURANCE CO 684185A June JUNE EMP PAID FLEX SPENDING/DEP CARE 23-250-10-00 1,411 66 Total. 1,411.66 66861 6/9/2011 011199 KEENAN &ASSOCIATES, PRUDENTIAL MUNI,May 0000338643 MAY EMP LIFE/SHORT/LG TERM DISABILITY 10-022-66-00 1,501 55 Total 1,501.55 66862 6/13/2011 010697 ZIONS BANK June 2011 June HVAC Payment 10-195-257-000-000 14,409 50 Total 14,409.50 66863 6/16/2011 001840 CITY OF COLTON 06162011 Sewer Connection Fees 4/08-11/10 21-022-00-00 320,400 00 Total. 320,400.00 66864 6/16/2011 006778 STAPLES 29833 Office Supplies 10-380-249-000-000 4467 Total: 44.67 66865 6/16/2011 010664 SHELL FLEET MANAGEMENT 8000209687106 May Vehicle Fuel 10-175-272-000-000 93534 Total: 935.34 66866 6/16/2011 006720 SO CA.EDISON COMPANY May 2011 May Energy Usage 26-601-238-000-000 41 50 26-602-238-000-000 58 10 16-510-238-000-000 5,56860 26-600-238-000-000 4980 Total: 5,718.00 66867 6/16/2011 011138 SPARKLETTS 9637116 060111 May Bottled Water Page 1 vchlist Voucher List Page. 2 06/21/2011 4:23:13PM CITY OF GRAND TERRACE Bank code. bofa Voucher Date Vendor Invoice Description/Account Amount 66867 6/16/2011 011138 SPARKLETTS (Continued) 10-190-238-000-000 9595 10-450-238-000-000 1037 10-805-238-000-000 1037 10-440-238-000-000 65.27 Total: 181.96 66868 6/17/2011 005702 PUBLIC EMPLOYEES' RETIREMENT PRend 4-29-11 Contributions for PRend 4-29-11 10-022-62-00 17,200 19 Total. 17,200.19 66869 6/20/2011 001907 COSTCO#478 0478 11 0078 11 C CARE SUPPLIES 10-440-220-000-000 192.21 Total 192.21 66870 6/20/2011 006730 SO CA.GAS COMPANY May 2011 May Natural Gas Usage 10-190-238-000-000 42414 10-440-238-000-000 5956 Total . 483.70 66871 6/20/2011 001206 ARROWHEAD CREDIT UNION May/June May/June Visa Charges 10-120-210-000-000 Refreshments-Closed Session Council Mtg 1956 23-200-14-00 C Care Teacher Appreciation/Supplies 18688 10-440-220-000-000 C Care Supplies 3248 10-440-228-000-000 C Care Fathers Day Event/Supplies 19911 10-440-223-000-000 C Care Supplies 7574 10-625-246-000-000 Storm Drain Grate 492.36 10-380-249-000-000 HP ScanJet-City Clerk 10000 10-125-246-000-000 HP ScanJet-City Clerk 26649 Total . 1,372.62 66872 6/20/2011 011071 STANCKIEWITZ,W June 2011 June Health Ins Reimbursement 10-110-142-000-000 41500 Total: 415.00 66873 6/20/2011 011029 COBRA SIMPLE 112 May COBRA Administration Fee 10-190-220-000-000 5000 Page 2 vchlist Voucher List Page: 3 06/21/2011 4:23:13PM CITY OF GRAND TERRACE Bank code. bofa Voucher Date Vendor Invoice Description/Account Amount 66873 6/20/2011 011029 COBRA SIMPLE (Continued) Total: 50.00 66874 6/20/2011 003858 J.Z.'S PARTY CHARM SB-7223 GT Community Day Equipment Rental 23-200-12-00 2,75755 Total . 2,757.55 66875 6/20/2011 011202 CHAPARRAL MOTORSPORTS Deal#3328419 2009 Yamaha Rhino ATV 4 x 4 10-410-701-009-000 12,602 00 Total. 12,602.00 66876 6/21/2011 010447 STUDIO 33 PRODUCTIONS 6489 Community Day Sound Stage Equipment 23-200-12-00 10000 Total: 100.00 66877 6/21/2011 001840 CITY OF COLTON 06212011 Sewer Connection Fees 4/08-11/10 Corr 21-022-00-00 19,800 00 Total. 19,800.00 66878 6/21/2011 010218 CHEVRON &TEXACO CARD SERVICES 30197305 May Vehicle Fuel 10-440-272-000-000 6835 10-175-272-000-000 39997 34-800-272-000-000 4202 Total 510.34 66879 6/21/2011 011204 MISTER TWISTER BALLOON ENTER. 1006 Community Day Balloon Entertainment 23-200-12-00 21000 Total• 210.00 66880 6/28/2011 011143 ALBERT A.WEBB ASSOCIATES 110533 FEB PROFESSIONAL SERVICES-TOWN SQR CNTR 32-200-250-000-000 6,17641 111168 APR BARTON PLAZA TRAFF RPT/PROJ REVIEW 23-302-80-10 2,58610 111556 MAY BARTON PLAZA TRAFF RPT/PROJ REVIEW 23-302-80-10 97500 111564 MAY TOWN SQUARE CONSTRUCTION MGMT SRVS 32-600-323-003-000 19,512 50 Total. 29,250 01 Page 3 vchlist Voucher List Page: 4 06/21/2011 4:23:13PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66881 6/28/2011 010293 AVAYA, INC 2731111245 June/July Phone&Voicemail Maint 10-190-246-000-000 18346 Total: 183.46 66882 6/28/2011 011031 CINTAS CORPORATION#150 150378924 C CARE PAPER GOODS& SUPPLIES 10-440-228-000-000 19030 150388055 C CARE PAPER GOODS& SUPPLIES 10-440-228-000-000 19030 Total. 38060 66883 6/28/2011 001840 CITY OF COLTON Apr/May 2011 APRIL/MAY WASTEWATER TREATMENT ADVANCE 21-570-802-000-000 198,000 00 Total 198,000.00 66884 6/28/2011 010403 CITY OF REDLANDS AR133075 May CNG Fuel 34-800-272-000-000 14866 Total. 148.66 66885 6/28/2011 001930 DAILY JOURNAL CORPORATION B2096846 NOTICE OF HEARING-HABITAT FOR HUMANITY 10-125-230-000-000 20940 10-125-230-000-000 261 40 B2110277 Notice of Hearing-Landscape/Lighting 26-601-250-000-000 61380 Tota I: 1,084.60 66886 6/28/2011 001950 DATA QUICK B1-1929951 April Subscription 10-370-250-000-000 4350 10-380-250-000-000 4350 34-800-220-000-000 4350 Total. 130.50 66887 6/28/2011 002301 FEDEX 7-524-60909 May/June Document Delivery 10-140-210-000-000 3482 10-120-210-000-000 8380 10-370-210-000-000 4504 10-125-210-000-000 2534 Tota 1: 189.00 Page 4 vchlist Voucher List Page 5 06/21/2011 4:23:13PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66888 6/28/2011 011203 FOWELL, MINDY 06022011 Park Reservation Refund-Rollins 4/20/11 10-450-01 5000 Total 50.00 66889 6/28/2011 002740 FRUIT GROWERS SUPPLY 90791133 MAINT SUPPLIES 10-450-245-000-000 3062 Tota 1 30.62 66890 6/28/2011 002901 G T AREA CHAMBER OF COMMERCE 6502-RDA MAY CONSULTANT SERVICES 32-370-213-000-000 86000 6513-RDA JUNE CONSULTANT SERVICES 32-370-213-000-000 86000 Total . 1,72000 66891 6/28/2011 003152 HARPER& BURNS LLPN May 2011 May Legal Services 32-200-251-000-000 4,24437 10-160-250-000-000 4,24438 Total. 8,488.75 66892 6/28/2011 003170 HdL COREN & CONE 0017005-IN Apr-Jun 2011 Property Tax Contract 32-370-255-000-000 62500 Total: 625.00 66893 6/28/2011 003850 JANI-KING OF CA., INC LAX06110964 JUNE C CARE JANITORIAL SERVICES 10-440-244-000-000 97500 Total: 975.00 66894 6/28/2011 010773 KELLAR SWEEPING INC 5933 MAY STREET SWEEPING SERVICES 16-900-254-000-000 4,200 00 Total: 4,200 00 66895 6/28/2011 004350 LEAGUE OF CALIFORNIA CITIES, 1 06152011 IE Division Dinner 7/14/11-Adams 10-120-270-000-000 4000 06162011 IE Division Dinner 7/14/11- Stanckiewitz 10-110-270-000-000 4000 Total. 80.00 66896 6/28/2011 011062 MUNICIPAL CODE CORPORATION 00206913 Municipal Code Supplement Page 5 vchlist Voucher List Page: 6 06/21/2011 4:23:13PM CITY OF GRAND TERRACE Bank code bola Voucher Date Vendor Invoice Description/Account Amount 66896 6/28/2011 011062 MUNICIPAL CODE CORPORATION (Continued) 10-125-250-000-000 5,910 12 Total 5,910.12 66897 6/28/2011 010097 NEXTEL COMMUNICATIONS 410575025-105 Apr/May Wireless Service-Maint/C Care 10-440-235-000-000 4901 10-175-240-000-000 23764 Total: 286.65 66898 6/28/2011 005400 OFFICE DEPOT 566417770001 C Care Office Supplies 10-440-210-000-000 72214 566419874001 C Care Office Supplies 10-440-210-000-000 61.25 Total: 783.39 66899 6/28/2011 005586 PETTY CASH 06202011 Replenish C Care Petty Cash 10-440-210-000-000 16.33 10-440-228-000-000 68.27 10-440-272-000-000 2048 Total. 105.08 66900 6/28/2011 010171 SIEMENS INDUSTRY INC RR-111750 MAY ROUTINE SIGNAL MAINTENANCE 16-510-255-000-000 451 68 RR-111751 April Response Call-outs 16-510-255-000-000 5040 Total . 502.08 66901 6/28/2011 006285 RIVERSIDE HIGHLAND WATER CO 2290 Feb/Mar Sewer Billing 21-572-255-000-000 2,46769 Total: 2,467.69 66902 6/28/2011 006341 ROSENOW SPEVACEK GROUP INC 06152011 General Fund Sustainabity Model Project 33-140-250-000-000 25,000 00 06162011 Professional Services Pass-through Error 33-140-250-000-000 6,03500 Total: 31,035.00 66903 6/28/2011 006451 S B COUNTY ASSESSOR 104460 Monthly Assessors Parcel Map Revisions Page 6 vchlist Voucher List Page: 7 06/21/2011 4:23:13PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66903 6/28/2011 006451 S B COUNTY ASSESSOR (Continued) 10-370-210-000-000 16.50 Total. 16.50 66904 6/28/2011 006510 S B COUNTY INFORMATION 11573 May Pager Access 10-175-240-000-000 900 Total. 9.00 66905 6/28/2011 006531 S B COUNTY SHERIFF 10926 JUNE LAW ENFORCEMENT SERVICES 14-411-256-000-000 8,33300 10-410-256-000-000 154,136 00 10-410-255-000-000 4,52400 Total 166,993.00 66906 6/28/2011 006681 SMART& FINAL Tran#275 Ref#13: C CARE KITCHEN SUPPLIES 10-440-220-000-000 345.21 Total: 345.21 66907 6/28/2011 006898 SYSCO FOOD SERVICES OF L.A. 1060819636 C CARE FOOD&SUPPLIES 10-440-220-000-000 69761 1061504286 C CARE FOOD& SUPPLIES 10-440-220-000-000 59414 Total. 1,291.75 66908 6/28/2011 007102 T Y LIN INTERNATIONAL 1106124 APR/MAY ENG SRVS-BARTON RD BRIDGE 47-400-250-001-000 2,902.90 Total: 2,902.90 66909 6/28/2011 007034 TRANSPORTATION ENGINEERING 1123 April Traffic Engineering Services 10-175-255-000-000 1,43000 Total. 1,430.00 66910 6/28/2011 007220 UNDERGROUND SERVICE ALERT 520110285 May Dig Alert Tickets 16-900-220-000-000 4500 Tote 1: 45.00 66911 6/28/2011 010693 UNITED WAY PR End 5/27&6/1 PR End 5/27/11 &6/10/11 Donations 10-022-65-00 12500 Page 7 vchlist Voucher List Page: 8 O6/21/2011 4.23:13PM CITY OF GRAND TERRACE Bank code bofa Voucher Date Vendor Invoice Description/Account Amount 66911 6/28/2011 010693 UNITED WAY (Continued) Total: 125.00 66912 6/28/2011 007880 WEST GROUP 823016050 May/June CA Code Updates 10-125-250-000-000 541 84 Total. 541.84 66913 6/28/2011 007854 WESTERN EXTERMINATORS CO 564694 MAY PEST CONTROL SERVICES 10-195-245-000-000 12500 10-805-245-000-000 3300 Total. 158.00 66914 6/28/2011 007920 WILLDAN 002-11313 A MAY INSPECTION SERVICES 10-172-250-000-000 1,78500 002-11313 B MAY PLAN CHECK SERVICES 10-172-250-000-000 1,65000 002-11314 MAY PLAN CHECK/ENG SRVS 10-175-255-000-000 7000 26-600-257-000-000 7000 26-601-257-000-000 7000 002-11315 Winter Storm Damage-Barton Road 10-190-702-001-000 42000 Total: 4,065.00 56 Vouchers for bank code. bofa Bank total: 865,391.16 56 Vouchers in this report Total vouchers 865,391 16 Page 8 I certify that to the best of my knowledge, the afore-listed checks for payment of City and Community Redevelopment Agency liabilities have been audited by me and are necessary and appropriate for the operation of City and Agency. Bernie Simon, Finance Director City of Grand Terrace Warrant Register Index FD No. Fund Name Dept No. Department Name General Account Numbers 10 GENERAL FUND 110 CITY COUNCIL 110 SALARIES/WAGES 11 STREET FUND 120 CITY MANAGER 139 EMPLOYEES'BENEFIT PLAN 12 STORM DRAIN FUND 125 CITY CLERK 140 RETIREMENT 13 PARK FUND 140 FINANCE 142 HEALTH/LIFE INSURANCE 14 AB 3229 COPS FUND 160 CITY ATTORNEY 143 WORKERS'COMPENSATION 15 AIR QUALITY IMPROVEMENT FUND 172 BUILDING&SAFETY 138/141 MEDICARE/SUI 16 GAS TAX FUND 175 PUBLIC WORKS 210 OFFICE EXPENSE 17 TRAFFIC SAFETY FUND/TDA FUND 180 COMMUNITY EVENTS 218-219 NON-CAPITAL FURN/SMALL TOOLS 19 FACILITIES DEVELOPMENT FUND 185 RENTAL INSPECTION PROGRAM 220 SPECIAL DEPARTMENTAL EXP 20 MEASURE I FUND 190 GENERAL GOVERNMENT(NON-DEPT) 230 ADVERTISING 21 WASTE WATER DISPOSAL FUND 195 FACILITIES MAINTENANCE 235 COMMUNICATIONS 22 COMMUNITY DEVELOPMENT BLOCK GRANT 370 COMMUNITY&ECONOMIC DEV 238-239 UTILITIES 26 LSCPG/LGHTG ASSESSMENT DIST. 380 MGT INFORMATION SYSTEMS 240-242 RENTS&LEASES 44 BIKE LANE CAPITAL FUND 410 LAW ENFORCEMENT 245-246 MAINT BLDG GRNDS EQUIPMNT 46 STREET IMPROVEMENT PROJECTS 430 RECREATION SERVICES 250-251 PROFESSIONAL SERVICES 47 BARTON RD.BRIDGE PROJECT 440 CHILD CARE 255-256 CONTRACTUAL SERVICES 32 CRA-CAPITAL PROJECTS FUND 450 PARKS MAINTENANCE 260 INSURANCE&SURETY BONDS 33 CRA-DEBT SERVICE FUND 631 STORM DRAIN MAINTENANCE 265 MEMBERSHIPS&DUES 34 CRA-LOW&MOD HOUSING 801 PLANNING COMMISSION 268 TRAINING 802 CRIME PREVENTION UNIT 270 TRAVEUCONFERENCES/MTGS 804 HISTORICAL&CULTURAL COMM. 272 FUEL&VEHICLE MAINTENANCE 805 SENIOR CITIZENS PROGRAM 570 WASTEWATER TREATMENT 807 PARKS&REC COMMITTEE 33-300 DEBT SERVICE 808 EMERGENCY OPERATIONS PROG. 7XX FACILITIES IMPRV(NO CIP) 700 COMPUTER-RELATED 701 VEHICLES&EQUIPMENT CALIFORNIA AGENDA REPORT MEETING DATE: June 28,2011 Council Item(X) CRA Item ( ) TITLE: Authorization to reject all bids for the retrofit lighting of various City buildings and facilities, (Request for Bid# I 1-02). PRESENTED BY: Richard Shields,Director of Building& Safety/Public Works RECOMMENDATION: Reject Request for Bid# 11-02, Lighting Retrofit. BACKGROUND: Through the American Recovery and Reinvestment Act, the California Energy Commission was awarded funds to establish the Energy Efficiency and Conservation Block Grant (EECBG) program to provide funds to small cities and counties within the State to assist in the implementation of various energy conservation measures. Staff requested authorization from the City Council to submit a grant application to the CEC at the January 12,2010 meeting. On August 3, 2010, the City received the authorized grant in the amount of$69,649.00. The grant will be used to fund various lighting and HVAC system retrofits located in the City Hall Annex, Public Works shop buildings, Child Care Center and Fire Station. In addition, staff has identified exterior lighting around the Civic Center complex that may be replaced with Light Emitting Diode (LED) lighting. Staff conducted an energy survey to identify and quantify the lighting and HVAC systems that could be replaced under this grant program. As a result, in some lighting locations, up to 40% reductions in energy consumption may be realized, with corresponding savings to future utility bills. The City prepared and released Request for Bid #GTB 11-02 for lighting retrofit of various buildings and facilities on or about February 27, 2011 and conducted a mandatory pre-bid meeting on Thursday,March 17, 2011 which was attended by nineteen(19)prospective vendors. Originally the bid opening was scheduled for Monday, March 28, 2011. Prior to the bid opening, the City had only received one bid for the project and subsequently elected to continue the bid opening date to April 28, 2011 in order to revise the bid specification and to revise the engineer's estimate for the lighting retrofit from $30,000 to $60,000 and to break out the interior lighting retrofits as a base bid and to establish a separate alternative bid for all the exterior lighting retrofits. This was done due to a concern that the actual costs for some of the exterior lighting retrofits would exceed the grant budgets. COUNCIL AGENDA ITEM NO- On Thursday, April 28, 2011, staff received and opened two bids, one from J.Kim Electric, Inc., of Fullerton, California and the second from Avram Electric of Corona California. Both companies submitted responsive bids for the base and alternative bids. A second component of the grant was the replacement of older Heating, Air Conditioning and Ventilation (HVAC) systems within the Child Care Center, the Civic Center Annex and the Fire Station. According to the grant terms, the grant would fund up to $1,000 per ton of replacement HVAC systems. As staff discussed energy programs with other cities performing similar work in much greater volume, it became apparent that the $1,000 limit per ton set forth in the grant may be too low and that similar replacements were running approximately $1,500 per ton of HVAC. Given the potential for additional expenses at a time when available funds within the city are of concern, staff began looking for additional funding sources to complete the project and potentially achieve greater program outcomes. On Wednesday, June 8, staff and consultant met with a representative from Southern California Edison who identified a variety of energy grant funding programs which, if combined into a comprehensive energy conservation approach, may actually have the potential to provide greater funding and savings to the city. As a result of this new information, staff feels that it would be more prudent to reject the current bids for the lighting retrofit and to work with SCE in developing a much more comprehensive energy conservation strategy which may allow the city to fund more effort through the combination of the grant funds and the SCE incentive programs. DISCUSSION: At the time of the grant award and development of the solicitation for the lighting retrofit of various buildings and facilities, staff was not aware of the additional program resources available through Edison, and had not determined that there was a potential of needing supplemental funding from the General Fund in order to accomplish the grant program objectives. Through the work of the City's Contract Energy Grant Manager, the Southern California Edison Program was identified as a potential source of supplemental funding for a more comprehensive energy program that may result in greater energy savings to the city in the future, while being able to fund energy efficiency improvements through a combination of both the energy grant and SCE incentive programs. Staff met with a representative from Edison on June 8, 2011 and subsequently identified several additional programs which may provide various incentives for lighting, HVAC controls and other energy savings which include actual cash payments to the City from SCE for cost savings. Therefore the staff is recommending that the City reject both bids that were received for the lighting retrofit without prejudice, and that the Council direct the staff to work with SCE to identify and develop a comprehensive energy efficiency and conservation strategy that uses both sources of funding to maximize the results and to develop and release any appropriate bid specifications to achieve this effort. FISCAL IMPACT: Funds for this project in the amount of$69,646.00 are provided through the California Energy Commission, if approved. Staff will continue to work with the City's energy providers, Southern California Edison and Southern California Gas to identify any additional incentives or rebates that may be applicable to these projects. Respectfully submitted, hard Shields, Director of Building& Safety/Public Works Manager Approval: 644��2 Betsy MAdams City Manager ATTACHMENTS: CALIFORNIA AGENDA REPORT MEETING DATE: June 28, 2011 Council Item ( X ) CRA Item ( ) TITLE: FY 2011-12 City Budget Adoption PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION: Adoption of FY 2011-12 City Budget BACKGROUND: On June 14, 2011, the City Council conducted a workshop review of the Preliminary City Budget for the fiscal year beginning July 1, 2011 through June 30, 2012. At that same time the City Manager also presented eight budget reduction recommendations to City Council for consideration along with other policy considerations. Council directed staff to incorporate budget reduction recommendations one through six for a second budget hearing that was conducted at a special meeting on June 21, 2011. On June 21, 2011, the City Manager also requested Council to consider an amended budget reduction recommendation seven and recommendation eight. Council directed Staff to present a budget on June 2e for adoption that included all recommendations, including the revised recommendation to remove budget recommendation seven. DISCUSSION: Budget reduction recommendations one to eight below resulted in savings of $533,692 to the General Fund as follows: 1. Remove Traffic Deputy Position from Sheriffs Contract-$228,714 2. Merge Rental Inspection Program into Code Enforcement-$51,465 3. Defund Management Analyst Position in Community Development-$6,496 4. Defund Community Events Program -$52,880 5. Defund Deputy City Clerk Position -$58,533 6. Reduce Parks & City Hall Maintenance -$17,200 7. (removed) 8. Share Patrol Deputy with City of Loma Linda -$118,404. Furthermore, the budget reduction recommendations above resulted in savings of $48,946 in the Special Revenue and Enterprise Funds. However, the budget reduction recommendations result in a change in the overhead cost allocation consisting of an additional charge to the General Fund of $34,710 and an additional charge to the Special Revenue and Enterprise Funds of$41,446. COUNCIL AGENDA ITEM NO.C<?n Council authorization to pursue the sale of the cell tower leases to Unison on June 14, 2011 will result in anticipated one time net revenue of $344,897, which is now included in the General Fund revenue for the FY 2011-12 budget. The above changes are now reflected in the FY 2011-12 City Budget consisting of the General Fund, Special Revenue Funds and the Capital Funds as follows: FY 2011-12 Budget Revenue Recap — TABLE 1 FY 2010-11 Prelim FY Budget Other Prelim FY Revised 2011-12 Reduc- Changes 2011-12 Budget -tions 06/28/11 #1 to#8 General Fund 4,697,558 4,545,074 0 344,897 4,889,971 Spec/Ent Funds 2,686,882 2,341,408 01 0 2,341,408 Capital Pr' Funds 1,507,309 922,8201 01 0 922,820 Total Revenue 8,891,749 7,809,3021 01 344,897 8,164,199 FY 2011-12 Budget Expenditure Recap— TABLE 2 FY 2010-11 Prelim FY Budget Other Prelim FY Revised 2011-12 Reduc- Changes 2011-12 Budget -tions 06/28/11 #1 to# 8 General Fund 4,870,961 5,098,190 533,692 34,710 4,599,208 Spec/Ent Funds 2,887,924 2,767 801 48,946 41,446 2,760,301 Capital Pr' Funds 1,602,319 922,820 0 0 922,820 Total 9,361,204 8,788,811 (582,638) 76,166 8,282,329 Expenditure FY 2011-12 Net Bud et TABLE 3 Revenue Expenditure Net Budget Prelim FY Prelim FY Prelim FY 2011-12 2011-12 2011-12 06/28/11 06/28/11 06/28/11 General Fund 4,889,971 4,599,208 290,763 Spec/Ent Funds 2,341,408 2,760,301 418,893 Capital Pr' Funds 922,820 922,820 0 Total 8,164,199 8,282,329 128,130) Total overall City budget for FY 2011-12 consists of proposed expenditures of $8,282,329 supported by estimated revenues of $8,154,199 and use of fund balance reserve The FY 2011-12 combined City Budget results in a net budget deficit of($128.130) The General Fund budget represents proposed expenditures of $4,599,208, including transfers out, supported by estimated revenues of $4,889,971. The proposed FY 2011-12 General Fund Budget results in a surplus of $290,793 with a projected ending overall General Fund Balance Reserve of $454,136. The overall General Fund Reserve consists of$454,136 available funds and no designated reserves. Potentially, there could be savings if the state COPS grant and a lower projected annual increase in the Sheriffs contract is realized. General Fund expenditures are summarized by department as follows: General Fund Expenditures by Department- TABLE 4 Ex enditure Reca FY 2010- Prelim FY Budget Other Prelim FY 11 2011-12 Reduc- Changes 2011-12 Revised 4ions REVISED Budget #1 to # 8 06/28/11 City Council 48,100 53,880 0 0 53,880 City Manager 262,391 272,035 0 0 272,035 City Clerk 187,890 176,595 58,533 0 118,062 Finance 267,338 275,011 0 0 275,011 City Attorney 60 000 60,000 0 0 60,000 Building & Safety 131,543 137,010 0 0 137,010 Public Works 232,669 228,440 9,187 0 219,253 Comm.Events/CD 55,201 52,880 52,880 0 0 Rental Inspection 65,043 68,900 68,900 0 0 Enforcmnt. Pro . 134,039 134,569 0 0 134,569 Non-Departmental 314,315 309,230 0 0 309,230 Facilities Maint. 157,849 172,849 10,000 0 182,849 Comm Econ Dev 211,103 211,565 10,939 0 222,504 Info.S stems 74,041 79175 0 0 79,175 Law Enforcement 2,025,596 2,2391115 3471118 0 1,891,997 Child Care 867,380 863,630 0 0 863,630 Park Maintenance 174,171 171,930 (18,013) 0 153,917 NPDES 91,891 83,668 0 0 83,668 Storm Drain Maint 16,000 16,000 0 0 16,000 Planning Comm 2,500 2,395 0 0 2,395 Historical Cultural 1,200 1,200 0 0 1,200 Sen. Citizens Prg 29,588 27,000 0 0 27,000 EOC/CERT 10,320 10,320 0 0 10,320 Cost Allocation 549,207 549,207 0 34,710 5141497 Total General 4,870,961 5,098,190 (533,692) 34,710 4,599,208 Fund The Special Revenue Fund budget represents proposed expenditures of $2,760,301, including transfers out, supported by estimated revenues of $2,341,408. The proposed FY 2011-12 Special Revenue Fund Budget results in a deficit of ($418,893) with a projected ending overall Special Revenue Fund Balance Reserve of $3,263.569. The overall Special Revenue Fund Reserve consists of $2,580.809 available funds and a Waste Water Designated Reserve of $682,760 for interagency capital funds. The Traffic Safety Fund is projected to have a negative balance due to the "catch-up" of contract amounts owed to Redflex for the red-light camera fines for the second straight year. Special Revenue/Enterprise Funds expenditures are summarized as follows: Special Revenue/Enterprise Funds - TABLE 5 Ex enditure Reca FY 2010- Prelim FY Budget Other Prelim FY 11 2011-12 Reduc- Changes 2011-12 Revised -tions REVISED Budget #1 to# 8 06/28/11 Street Fund 91,500 187,100 0 15,511 202,611 Storm Drain 0 0 0 0 0 Park Fund 16,629 16,629 0 1,087 17,716 AB 3229 COPS 0 0 0 0 0 Air Quality Fund 32,700 700 0 700 0 Gas Tax Fund 353,459 434,738 30,624 768 403,346 Traffic Safety 85,650 58,735 91140 2,718 52,52,308 Facilities 0 0 0 0 0 Development Measure 1 462,007 271,974 0 14,730 286,704 Wastewater Disp 1,677,535 1,673,760 91187 9,705 1,674,278 CDBG 154,379 110,100 0 0 110,100 LLMD 14,065 14,065 0 832 13,233 Total Spec/Ent 2,887,924 2,767,801 (48,951) 41,451 2,760,301 Funds The Capital Projects Fund budget represents proposed expenditures of$922,820, including transfers out, supported by estimated revenues of$922,820. The proposed FY 2011-12 Capital Projects Fund budget results in revenues matching expenditures Capital Project Fund expenditures are summarized as follows. Capital Project Funds-TABLE 6 Expenditure Reca FY 2010-11 Prelim FY Budget Other Prelim FY Revised 2011-12 Reduc- Changes 2011-12 Budget -tions REVISED #1 to# 8 06/28/11 Capitallmprov.- 652,205 828,732 0 0 828,732 Streets Barton Bride 950,114 94,088 0 0 94,088 Total Capital Proj 1,602,319 922,820 0 0 922,820 Funds Changes in Fund Balance Reserves are calculated as follows: FY 2011-12 Estimated Revenues and Expenditures and CHANGES IN AVAILABLE FUND BALANCE RESERVE - FY 2011-2012 -TABLE 7 Fund Beginning Revenue Expend. Reservations Ending Fund and Available Balance Designations Fund Balance General Fund 163,373 4,889,971 4,599 208 0 454,136 Total 163,373 4,889,971 (4,599,208) 0 454,136 General Fund Special Rev Funds Street Fund 752,411 7,000 202,611 0 556,800 Storm Drain 64,919 350 0 0 65,269 Park Fund 218,791 7,100 17,716 0 208,175 AB3229 COPS 0 0 0 0 0 Air Quality Fund 55,666 14,250 0 0 69,916 Gas Tax Fund 92,147 405,860 403,346 0 94,661 Traffic Safety 40,624 70,000 52,313 0 22,937 Facilities Dev 206,343 200 0 0 206,543 Measure 1 84,251 216,913 286,704 0 14,460 Waste Water 1,583,611 1,495,300 1,674,278 0 1,384,633 CDBG 0 110 100 110,100 0 0 LLMD 2,187 14,335 13,233 0 3,289 Subtotal Spec 2,999,702 2,341,408 (2,760,301 0 2,580,809 Rev Capital Funds Bike Lane Fund 0 0 0 0 0 Street Im rov 0 828,732 828,732 0 0 Barton Bride 0 94,088 94,088 0 0 Subtotal 0 922,820 (922,820) 0 0 Ca Funds Total 3,163,0751 8,154,199 8,282,329 0 3,034,945 CHANGES IN DESIGNATED FUND BALANCE RESERVE - FY 2011-2012 -TABLE 8 Fund Beginning Revenue Expend. Reservations Ending Fund and Available Balance Designations Fund Balance Special Rev Funds Waste Water 682,760 0 0 0 682,760 Total 682,760 0 0 0 682,760 TOTAL FUND BALANCE RESERVE—FY 2011-2012 Fund Beginning Revenue Expend. Reservations Ending Available and Total Fund Designations Fund Balance Balance General Fund 163,373 4,889,971 4,599,208 0 454,136 0 Spec. Revenue 2,999,702 2,341,408 (2,760,301) 0 2,580,809 Funds Waste Water 682,760 0 0 682,760 0 Capital Funds 0 922,820 (922,820) 0 0 Total City Fund 3,845,835 8,154,199 (8,282,329) 682,760 3,034,945 Balance Reserves FISCAL 11VIPACT: Adoption of City Budget will result in: • General Fund Revenue $4,889,971 • General Fund Expenditures and Transfer Out$4,599,208 • Change in Fund Balance Reserve of 290,763 ❖ Special Revenue Fund Revenue$2,341,408 ❖ Special Revenue Fund Expenditures and Transfer Out$2,760,301 ❖ Change in Fund Balance Reserves of($418,893) ✓ Capital Project Revenue/Transfer in of$922,820 ✓ Capital Project Expenditures$922,820 ❖ Overall CITY combined Revenue and Transfer in of$8,184,199 ❖ Overall CITY combined Expenditures and Transfer out of$8,282,329 ❖ Overall Change in CITY combined Fund Balance Reserve of$810,890 ❖ Projected Overall available CITY combined Fund Balance Reserve at 6-30-2012 of $3,034,945 ❖ Projected Overall Designated CITY combined Fund Balance Reserve at 6-30-2010 of $682,790. Respectfully submitted: �-- Bernie Simon, Finance Director Manager Approval: -betsy-VAdamik, City Manager ATTACHMENTS: FY 2011-12 Budget Resolution 1 RESOLUTION NO. 2011- A RESOLUTION OF THE CITY OF GRAND TERRACE,CALIFORNIA, ADOPTING A BUDGET FOR FISCAL YEAR 2011-12 WHEREAS,the City of Grand Terrace is a general law city incorporated under the laws of the State of California; and WHEREAS,the City of Grand Terrace operates on a fiscal calendar year beginning on July 1'of each year and ending on June 30h of the next year; and WHEREAS,the City of Grand Terrace wishes to adopt a budget for the fiscal year 2011-12 for expenditures based on estimated revenues and available fund balance reserves; and WHEREAS, staff has presented an operating and capital budget containing the General Fund, Special Revenue Funds and Capital Funds to meet the needs of the citizens of the City of Grand Terrace; and WHEREAS, on April 12, 2011,the City of Grand Terrace and the Community Redevelopment Agency entered into a loan agreement acknowledging that the City owes the Community Redevelopment Agency of Grand Terrace $3,388,091 and desires to make annual payments to the Agency subject to available funds of the City in each fiscal year. No payment is due in fiscal year 2011-12 and the next payment is due July 1, 2012; and NOW THEREFORE,the City Council of the City of Grand Terrace does hereby resolve, declare, determine, and order as follows: Section 1. The budget for Fiscal Year 2011-12, a copy of which has been filed in the City Clerk's office, is hereby adopted with projected beginning General Fund Balance reserves of$163,373, including designated funds, total General Fund expenditures of$4,599,208 including transfers-out,to be funded by estimated revenues of$4,889,971 including transfers-in. Special Revenue Fund budget is adopted with beginning Special Revenue Fund Balance reserves of$2,999,702,including designated funds, total Special Revenue Fund expenditures of$2,760,301 including transfers-out, to be funded by estimated revenues of$2,341,408including transfers-in. Capital Projects Fund budget is adopted with beginning Capital Projects Fund Balance deficit of$_0� including designated funds,total Capital Projects Fund expenditures of$922,820including transfers-out, to be funded by estimated revenues of$922,820 including transfers-in. 2 A summary of the City Budget by fund is referenced in"Exhibit A" Section 2. City Council authorizes the City Manager to make budget adjustments to the adopted budget to reallocate appropriations between departmental activities. Only the City Council, by motion and affirmative majority vote, by minute action or by resolution, may make increases and decreases in estimated fund revenues and fund appropriations. Section 3. No payment will be made in FY 2011-12 on the loan due from the City to the Community Redevelopment Agency. PASSED, APPROVED, AND ADOPTED this 28a' day of June, 2011. Attest: City Clerk Mayor City of Grand Terrace 1 RESOLUTION NO. 2011- A RESOLUTION OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING A BUDGET FOR FISCAL YEAR 2011-12 "EXHIBIT A" FY 2011-12 Estimated Revenues and Expenditures and CHANGES IN AVAILABLE FUND BALANCE RESERVE-FY 2011-2012- Fund Beginning Revenue Expend. Reservations Ending Fund and Available Balance Designations Fund Balance General Fund 163,373 4,889,971 4,599,208 0 454,136 Total 163,373 4,889,971 (4,599,208) 0 454,136 General Fund Special Rev Funds Street Fund 752,411 7,000 202,611 0 556,800 Storm Drain 64,919 350 0 0 65,269 Park Fund 218,791 7,100 17,716 0 208,175 AB3229 COPS 0 0 0 0 0 Air Quality Fund 55,666 14,250 0 0 69,916 Gas Tax Fund 92,147 405,860 403,346 0 94,661 Traffic Safety (40,624) 70,000 52,313 0 22,937 Facilities Dev 206,343 200 0 0 206,543 Measure 1 84,251 216,913 286,704 0 14,460 Waste Water 1,583,611 1,495,300 1,674,278 0 1,384,633 CDBG 0 110,100 110,100 0 0 LLMD 2,187 14,335 13,233 0 3,289 Subtotal Spec 2,999,702 2,341,408 (2,760,301 0 2,580,809 Rev Capital Funds Bike Lane Fund 0 0 0 0 0 Street Im rov 0 828,732 (828,732 0 0 Barton Bride 0 94,088 94,088 0 0 Subtotal 0 922,820 (922,820) 0 0 Ca Funds Total 3,163,075 8,154,199 8,282,329 01 3,034,945 CHANGES IN DESIGNATED FUND BALANCE RESERVE - FY 2011-2012 - Fund Beginning Revenue Expend. Reservations Ending Fund and Available Balance Designations Fund Balance Special Rev Funds Waste Water 682,760 0 0 0 682,760 Total 682,760 0 0 0 682,760