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05/24/2011 PENDING CRA APPROVAL CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY MINUTES REGULAR MEETING MAY 24,2011 A regular meeting of the Community Redevelopment Agency, City of Grand Terrace,was held in the Council Chambers;Grand Terrace Civic Center,2-2795 Barton Road;Grand Terrace,California, on May 24, 2011 at 4:30 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 Detective Martin,,San Bernardino County Sheriff's Department Rick'McClintock, San Bernardino County Fire Department ABSENT: None CONVENE THE JOINT CRAXITY COUNCIL WORKSHOP-at 4:30 P.M. CRA/CITY COUNCIL- CLOSED SESSION 1. Labor Relations per GC54957.6 2. Closed Session-'Conference with Legal Counsel -Potential Litigation GC54956.9 (b) - One Case Mayor Stanckiewitz'announced that the Agency-and Council met-in Closed Session to discuss Labor Relations per GC54957.6 and held a Conference with Legal Counsel - Potential Litigation GC54956.9(b) - One Case and there was no reportable action taken. Mayor Stanckiewitz convened the Public Financing Authority,Community Redevelopment Agency ' and the City Council Meeting at 6:15 p.m. The meeting was opened.with an Invocation by Mayor Pro Tem Lee Ann Garcia, followed by the Pledge of Allegiance led by City Attorney John Harper. AUTHORIZATION TO ISSUE REDEVELOPMENT TAX ALLOCATION BONDS 4 A. Actions by Public Financing Authority CRA AGENDA ITEM NO. Community Redevelopment Agency Minutes May 24,2011 Page 2 1. Resolution of Public Financing Authority Establishing Regular Meeting Dates GTPFA-201 1-01 MOTION BY AUTHORITY MEMBER MCNABOE, SECOND BY AUTHORITY MEMBER HAYS, CARRIED 5-0, to approve a Resolution of the Public Financing Authority Establishing Regular Meeting Dates. 2. Authorization to Issue Redevelopment Tax Allocation Bonds GTPFA-2011-02 MOTION BY AUTHORITY MEMBER SANDOVAL, SECOND BY AUTHORITY MEMBER MCNABOE, CARRIED 5-0, to Approve a Resolution Approving the Forms of an Indenture of Trust,.Purchase Contract, Continuing Disclosure Agreement and an Official Statement and Authorizing the Execution of the Purchase Contract Relating to the Issuance of the Community Redevelopment Agency of the City of Grand Terrace's Tax Allocation Bonds Issue of 2011 A and Issue of the 2011 B for the Community Redevelopment Project Area and Approving Certain Action in Connection Therewith. B. Actions of the City Council 1. Approve the Issuance by the Agency of Redevelopment Tax Allocation Bonds CC-2011-40 MOTION BY COUNCILMEMBER HAYS, SECOND BY COUNCILMEMBER MCNABOE,CARRIED 5-0,to approve a Resolution Approving the Issuance by the Community Redevelopment Agency of the City of Grand Terrace of Tax Allocation Bonds,Issue of 2011 A and Issue 2011 B,for the Community Redevelopment Project Area and Making Certain Determination Relating Thereto and Authorizing Certain Other Actions in Connection Therewith. C. Actions by Community Redevelopment AgencX 1. Authorization to Issue Redevelopment Tax Allocation Bonds CRA-2011-31 MOTION BY AGENCY MEMBER MCNABOE, SECOND BY AGENCY MEMBERHAYS,CARRIED 5-0,to approve aResolution Authorizing the Issuance and- Sale of Tax Allocation Bonds, Issue of 2011 A and Issue of 2011 B, for the Community Redevelopment Project Area, and Approving the Form of an Indenture , of Trust, Official Statement,Purchase Contract, Continuing Disclosure Agreement and Related Documents and Authorizing Certain Other Actions in Connection Therewith. Community Redevelopment Agency.Minutes May 24,201 f Page 3 Mayor.Stanckiewitz adjourned the Public Financing Authority Meeting at 6:55 p.m. 1. Approval of 05-10-2011 and 05-12-2011 CRA Minutes CRA-2011-32 MOTION BY AGENCY MEMBER HAYS, SECOND BY VICE-CHAIRMAN GARCIA,CARRIED 5-0,to accept the May 10,2011 and May 12,2011 Community ' Redevelopment Agency Minutes. 2. Joint Public Hearing for the Sale of Agency-owned Property at 12569 Michigan Street to Habitat for Humanity San Bernardino Area,Inc.For$1.00 to Construct Two Single Family Homes Community and Economic Development Director, Joyce Powers,.indicated the that the Agency's Low-to Moderate-Income Housing Fund purchased the 0.5 acre parcel-at 12569 Michigan Street from the City on March 8, 2011,to develop affordable housing. Staff has been working with Habitat for Humanity San Bernardino Area, Inc. to determine their interest in developing two or three homes under their self-help housing program. They have expressed interest in a Grand Terrace project for 2012. Their Board of Directors will meet on May 19, 2011 to discuss the approval of the Grand Terrace project. She outlined the various conditions that would be approved through resolutions of the City Council and Redevelopment Agency. She stated that staff is recommending that the City and Agency approve the resolutions and partner with Habitat for Humanity San Bernardino, Inc. to complete the project. She indicated that the residences that will be constructed will assist the'City and Agency in meeting their affordable housing requirements. Mayor Stanckiewitz opened the public hearing for discussion. There being none,he returned discussion to the Council/Agency. Councilmember Bernardo Sandoval,questioned what safeguards would be put into place to ensure that the homes that are built fit in with the neighborhood around them. Community.and Economic Development Director Powers,responded that the project would be reviewed and processed through the Planning Department. Mayor Walt Stanckiewitz, requested clarification on what low-income is and what the threshold is for low-income. Community and Economic Development Director Powers, responded that she didn't bring ' that information with her to the meeting,however,the medium income for a family of four is in the$70,000.00 range. She would suspect that it would be in the$50,000:00 range and stated that she will get that information to the Council. Community Redevelopment Agency Minutes May 24;.2011 Page 4 Mary Rose, Director of Habitat for Humanity San Bernardino Area, responded that they follow HUD guidelines. Councilmember Gene Hays, questioned how they will go- about generating the pool of applicants that would be potential homeowners. Mary Rose,responded that they start out with an information evening that is by an invitation that is published in the paper or people who have contacted them. They are given an application packet. They do background checks,credit checks and employment verification and a home visit. Councilmember Darcy McNaboe,questioned if the requirement through the covenant is that a low or very low income family live in the homes.for 45 years, what type of follow-up is done to ensure that the houses are being.maintained. Mary Rose,responded that they have a family partner that works with them and maintains a relationship with them. Councilmember McNaboe, questioned what would be done if a family is failing to keep up to standards,what would happen. Mga Rose, responded that they will meet with them and work out a solution. Councilmember McNaboe, questioned if they have ever been in a position to remove a family. Mary Rose, stated that they have come close but no. Mayor Pro Tem Lee Ann Garcia,questioned what type of philosophy Habitat for Humanity has in their efforts to making the families feel a part of the already established neighborhoods. Mary Rose, responded that they reach out to the neighbors so that they can get acquainted with the volunteers and invite them to get involved. CC72011-41 MOTION BY COUNCILMEMBER MCNABOE, SECOND BY ' COUNCILMEMBER HAYS, CARRIED 5-0,to adopt a Resolution exempting the application of California Health and Safety Code Section 33433 to Small Housing Projects. C_RA-2011-33 MOTION BY AGENCY MEMBER MCNABOE, SECOND BY AGENCY MEMBER SANDOVAL, CARRIED 5-0,to adopt a.Resolution approving the Sale Community Redevelopment Agency Minutes May 24,2011 Page 5 of 12569 Michigan Street to Habitat for Humanity San Bernardino Area, Inc. For $1.00 to construct two affordable residences. CRA-20.11-34 MOTION BY AGENCY MEMBER SANDOVAL, SECOND BY AGENCY MEMBER HAYS, CARRIED 5-0,to approve a Purchase and Sale Agreement,and Grant Deed and Affordability Covenant for Signature by the Chairman. Chairman Stanckiewitz adjourned the Community Redevelopment Agency Meeting at 7:10 p.m., until the next CRA/City Council Meeting that is scheduled to be held on Thursday, May 12, 2011 at 5:00 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 CALIFORNIA AGENDA REPORT MEETING DATE: May 24, 2011 Council Item (X ) CRA Item (X ) Public Financing Authority (X ) TITLE: Authorization to Issue Redevelopment Tax Allocation Bonds PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: Public Financing Authority: Adopt the attached Resolutions establishing regular annual meetings- of the Authority and approving documents relating to the issuance of Redevelopment Tax Allocation Bonds. City Council: Adopt the attached Resolution authorizing the issuance of not to exceed $22,000,000 tax exempt (Issue 2011 A) and $7,000,000 taxable (Issue 2011 B), tax allocation bonds by the Community Redevelopment Agency of the City of Grand Terrace Redevelopment Agency to finance projects. Agency_ Adopt the attached Resolution authorizing the issuance and sale of not to exceed $22,000,000 tax exempt (Issue 2011 A) and_$7,000,000 taxable (Issue 2011 B), tax allocation bonds by the Community Redevelopment Agency of the City of Grand Terrace Redevelopment Agency to finance projects. BACKGROUND: The Agency has been engaged in an ongoing review of its financial resources and opportunities to finance infrastructure construction and other redevelopment activities (non- housing). On May 10, 2011, the Agency's financing team reviewed options with the Board and was directed to proceed with the issuance and sale of tax allocation bonds under an option that would provide the Agency with approximately $20 million in proceeds to expedite projects, while leaving approximately $850,000 in annual revenues to finance programs and operations after paying the debt'service. Included in those discussions were proposed uses of the funds and whether both tax-exempt and taxable bonds should be issued. PFA/CC/CRA Item: A, B & C Tax allocation bonds are the most commonly utilized financing mechanism for redevelopment agencies to fund redevelopment activities, particularly public improvements. With tax allocation bonds, future redevelopment tax increment revenue is pledged to pay the principal and interest on the Agency bonds; tax allocation bonds do not create new or increased property taxes. The risk and obligation to pay is solely with the Agency, not the City or its taxpayers, even assuming the unlikely event that the Agency defaults on the bond payments. The Agency has issued bonds in the past to raise revenues to immediately fund projects and programs, rather than to wait many years to accumulate sufficient funds for such purposes. The interest portion of the payments on tax-exempt bond proceeds is exempt from State and Federal taxes and would be used for public infrastructure improvements; taxable bond proceeds may be used for a broader range of activities including property acquisition and other programs. For example, if the Agency purchases property with the intent to resell it for public-private partnership development rather than to retain it for public facilities, this activity would be an appropriate use of taxable bond proceeds, but would not be suitable for the use of tax-exempt bonds. The public infrastructure improvements which have been discussed include: • The southwest area of the City east of 1-215, between De Berry and Pico Streets; • Michigan Street between Barton Road and Main Street; • Storm drain and street rehabilitation on Van Buren, Pico, and Main Streets; and • Stabilization of the Mt. Vernon slope. Staff anticipates completing these projects within approximately three years, including community meetings to discuss recommendations from the City's residents. DISCUSSION: Grand Terrace Public Financing Authority: On December 13, 1990, the City Council and Agency formed a Public Financing Authority, which is authorized to purchase bonds issued by the City or Agency and to sell the bonds to public or private purchasers. When the Financing Authority was established, a regular meeting schedule was not set. Under Senate Bill 99/Chapter 557 (Statutes of 2009), a Financing Authority must establish regular annual meeting dates and may only authorize any issuance of bonds during a regular meeting of the Authority. The Agency's Special Counsel has prepared the attached Resolution of the Public Financing Authority (Attachment 1) establishing regular annual meetings to be held at 6:00 p.m. the fourth Tuesday of May of each year, beginning with May 24, 2011. Staff is recommending approval of this Resolution as the first business item related to the approval to issue the tax allocation bonds. A second Resolution of the Authority (Attachment 2), if adopted, approves the documents necessary for the issuance of Redevelopment Tax Allocation Bonds as follows: • Issue 2011 A, tax-exempt bonds not to exceed $22,000,000; and • Issue 2011 B, taxable bonds not to exceed $7,000,000. Due to the fluid conditions within financial markets, the final structuring of a bond may be subject to modification based on conditions on the date of closing, including interest rates. The amounts listed above would be the maximum authorized, and 'the actual amount of bonds issued may be less or equal to the amount authorized. The amount issued will not exceed the amounts for which Agency approval is requested without further specific action by the Agency. The financing team anticipates a coverage ratio of up to 1.48, allowing $850,000 in available funds per year above the Agency's obligations. A coverage ratio of 1.48 would mean that the Agency's projected annual tax increment revenue would be at least 1.48 times the annual debt service (payments) on the bond amount actually issued. Based on market conditions when this report was written, this coverage ratio allows for the following: • Issue 2011 A (tax-exempt for infrastructure) would be for approximately $15,000,000, with net proceeds of approximately $13,300,000 after reserves are established and costs of issuance are paid. • Issue 2011 B (taxable) would be for approximately $5,600,000, with net proceeds of approximately $5,000,000. It is anticipated that bonds would be issued by the Agency, sold to the Grand Terrace Public Financing Authority and immediately resold to the underwriter, Wedbush Securities, which would, in turn, handle the marketing and sale of the bonds on a public basis. By utilizing this structure, the Agency would be in a position to respond quickly to market conditions by closing the sale to the Public Financing Authority at the most preferred interest rate, and would immediately receive the proceeds. City Council Action: Attachment 3 is a Resolution of the City Council approving the issuance of the tax allocation bonds described above by the Agency. It also authorizes the City Manager to execute such documents and certificates necessary to issue the bonds. The City Council would also approve a technical amendment to the Joint Powers Agreement designating the City Clerk at Secretary of the Authority. The 1990 Agreement designated the Deputy City Clerk as the Secretary. Agency action: Attachment 4 is a Resolution of the Agency approving the documents and their execution relating to the issuance and sale of the 2011 tax allocation bonds. The Agency would also approve a technical amendment to the Joint Powers Agreement designating the City Clerk at Secretary of the Authority. The 1990 Agreement designated the Deputy City Clerk as the Secretary. FISCAL IMPACT: The fiscal impact would be in the amount of approximately $31 to $45 million in future Agency tax increment revenues to secure immediate funds in the amount of approximately $18-$22 million (net proceeds). Future debt payments of approximately of $1.6 to $2 million would be appropriated from the Agency's Debt Service Fund between the fiscal years 2011-12 and 2033-34, based on the debt service schedule included in the official statement. Based on the financial projections that have been prepared by Agency consultants, the Agency will receive sufficient tax increment revenues to meet all existing obligations and make debt payments. Without the additional debt, not only would the Agency not collect the additional projected property tax revenue, the community would not receive funds necessary to complete the local projects. Res ectfully submitted, 41�1e& 6Uwd-- i'6yoE(Powers Community and Economic Development Director Reviewed ark Huebsch Agency Special Counsel Manager Approval: zi Betsy . Adam City Manager and CRA Executive Director ATTACHMENTS: 1. Public Financing Authority Resolution establishing annual meetings 2. Public Financing Authority Resolution approving bonding documents 3. City Council Resolution authorizing bond issuance 4. Agency Resolution authorizing issuance and sale of bonds r ATTACHMENT No. 1 PFA Resolution establishing annual meetings RESOLUTION NO. GRAND TERRACE PUBLIC FINANCING AUTHORITY RESOLUTION OF THE GRAND TERRACE PUBLIC FINANCING AUTHORITY ESTABLISHING REGULAR MEETING DATES WHEREAS, the Grand Terrace Public Financing Authority (the "Authority") is a joint exercise of powers authority organized and existing under Article 1 and Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "JPA Act") for the purpose of assisting its members and any related agencies or subdivisions (the "City") in the financing or refinancing of particular projects; and WHEREAS, to fulfill its purposes, the Authority, from time to time, authorizes the issuance of bonds or purchases bonds of other local agencies pursuant to the JPA Act; and WHEREAS, Government Code Section 6592.1 provides that the Authority may adopt a resolution authorizing bonds or any issuance of bonds or accepting the benefit of any bonds or the proceeds of bonds only during a regular meeting of the Authority held pursuant to Government Code Section,54954; and WHEREAS, the Authority desires to adopt this resolution in accordance with the provisions of Government Code Section 54954 to establish regular meeting dates; NOW, THEREFORE, the Board of Directors of the Authority does hereby resolve as follows: SECTION 1. Recitals. Each of the foregoing recitals is true and correct. SECTION 2. Regular Meeting Dates. Notwithstanding any provision to the contrary in the joint powers agreement establishing the Authority, any bylaws of the Authority or in any prior resolutions or actions of the Board'of Directors of the Authority, from the date hereof, the regular meetings of the Authority shall be held on fourth Tuesday in May at 6:00 p.m. (commencing with May 24, 2011), and may be held as a joint meeting with the City Council of the City; provided, however, if the regular meetings of the City Council of the City are changed so that they do not include a meeting on the fourth Tuesday in May at 6:00 p.m., then the regular meeting dates and times for the Board of Directors of the Authority shall, without further action by the Board of Directors, be changed to be the same date and time as the regular City Council meetings. In the event that the Secretary determines that there is no business of the Authority to be conducted at a regular meeting, then the Chairman, the Secretary and other officers of the Authority are authorized to take whatever actions are required by law to cancel such regularly scheduled meeting. SECTION 3. Other Actions. The Chairman, Vice Chairman, Executive Director, Treasurer, Secretary and other officers of the Authority are authorized and directed,jointly and severally, to do any and all things which they may deem necessary or advisable in order to effectuate the purposes of this Resolution, and such actions previously taken by such officers are hereby ratified and confirmed. The appointment of Brenda Mesa, City Clerk, as Secretary is hereby approved and ratified. bOCS OC/14886510/022092-0002 SECTION 4. Effect. This Resolution shall take effect immediately upon adoption hereof. THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE GOVERNING BOARD OF THE GRAND TERRACE PUBLIC FINANCING AUTHORITY THIS TWENTY-FOURTH(24th)DAY OF MAY, 2011,BY THE FOLLOWING ROLL-CALL VOTE: AYES: NOES: ABSTAIN: ABSENT: CHAIRMAN ATTEST: CLERK 2 DOCSOC/1488651 v3/022092-0002 STATE OF CALIFORNIA SECRETARY'S CERTIFICATE COUNTY OF SAN BERNARDINO OF AUTHENTICATION CITY OF GRAND TERRACE I, Secretary of the Grand Terrace Public Financing Authority, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. of said Authority and that said Resolution was adopted at the time and by the vote stated on the above certificate; and has not been amended or repealed. Secretary DOCSOC/1488628v3/022092-0002 ATTACHMENT No. 2 PFA Resolution approving documents RESOLUTION NO. RESOLUTION OF THE GRAND TERRACE PUBLIC FINANCING AUTHORITY APPROVING THE FORMS OF AN INDENTURE OF TRUST, PURCHASE CONTRACT, CONTINUING DISCLOSURE AGREEMENT AND AN OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION OF THE PURCHASE CONTRACT RELATING TO THE ISSUANCE OF THE COMMUNITY REDEVELOPMENT AGENCY OF' THE CITY OF GRAND TERRACE'S TAX ALLOCATION BONDS ISSUE OF 2011A AND ISSUE OF 2011B FOR THE COMMUNITY REDEVELOPMENT PROJECT AREA AND APPROVING CERTAIN ACTIONS IN CONNECTION THEREWITH WHEREAS, the Authority is a joint powers authority organized pursuant to Title 1, Division 7, Chapter 5 of the Government Code of the State of California; and WHEREAS, for the corporate purposes of the Community Redevelopment Agency of the City of Grand Terrace (the "Agency"), the Agency deems it necessary to issue at this time its Community Redevelopment Project Area Tax Allocation Bonds, Issue of 2011A (the "2011A Bonds") in an aggregate principal amount of not to exceed Twenty-Two Million Dollars ($22,000,000.00) and its Community Redevelopment Project Area Tax Allocation Bonds, Issue of 2011B (the"2011B Bonds") in an aggregate principal amount of not to exceed Seven Million Dollars ($7,000,000.00) for the purpose of providing moneys to finance the Redevelopment Plan, all pursuant to the provisions of Articles 10 and 11 of Chapter 3 of part 1 of Division 2 of Title 5 of the California Government Code (the `Bond Law"), as provided in an indenture of trust.substantially in the form submitted herewith (the "Indenture"), and to pay costs in connection with the issuance of the 2011A Bonds and the 2011B Bonds (collectively, the "2011 Bonds") and to make certain other deposits as required by the Indenture;and WHEREAS, the purposes stated above will be accomplished by the Authority purchasing such 2011 Bonds from the Agency and selling such 2011 Bonds to Wedbush Securities Inc. (the "Underwriter") pursuant to the Marks-Roos Local Bond Pooling Act of 1985 (Government Code Sections 6584, et seq.); and WHEREAS,there have been prepared and submitted to this meeting forms of: (1) a draft of the Indenture of the Agency; (2) a draft of the Preliminary Official Statement of the Agency to be used in connection with the sale of the 2011 Bonds (such Preliminary Official Statement in the form presented at this meeting with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as "Preliminary Official Statement"); (3) a draft of the proposed Purchase Contract among the Agency, the Authority and the Underwriter(as the 2011A Bonds and the 2011B Bonds, respectively); and (4) a draft of the proposed Continuing Disclosure Agreement. Dbcsoc/1488628v3/022092-0002 NOW, THEREFORE, BE IT RESOLVED by the Grand Terrace Public Financing Authority, as follows: Section 1. Subject to provisions of the Indenture referred to in Section 2 hereof, the purchase of and simultaneous resale to the Underwriter of 2011A Bonds in the aggregate principal amount of not to exceed Twenty-Two Million Dollars ($22,000,000.00) and the issuance of 2011B Bonds in the aggregate principal amount of not to exceed Seven Million Dollars ($7,000,000.00) on the terms and conditions set forth in, and subject to the limitations specified in, the Indenture and the Purchase Contract, is hereby authorized and approved. The 2011 Bonds will be dated, will bear interest at the rates, will mature on the dates, will be issued in the form, will be subject to redemption, and will be as otherwise provided in the Indenture, as the same will be completed as provided in this Resolution. Section 2. , The Indenture, in substantially the form submitted at this meeting and made a part hereof as though set forth in full herein, be and the same is hereby approved. Section 3. The Purchase Contract in substantially the form submitted at this meeting and made a part hereof as though set forth in full herein, be and the same is hereby approved. The Executive Director of the Authority is hereby authorized and directed to execute the Purchase Contract in the form presented at this meeting with such changes, insertions and omissions as may be approved by the Executive Director, said execution being conclusive evidence of such approval. Section 4. The Preliminary Official Statement in substantially the form presented at this meeting and made a part hereof as though set forth in full herein,be and the same is hereby approved and the use of the Preliminary Official Statement in connection with the offering and sale of the 2011 Bonds is hereby authorized and approved. Section 5. The preparation and delivery of an Official Statement, and its use by the Underwriter, in connection with the offering and sale of the 2011 Bonds, be and the same is hereby authorized and approved. The Official Statement shall be.in substantially the form of the Preliminary Official Statement with such changes, insertions and omissions as may be requested by Bond Counsel or the Underwriter and approved by the Chairman of the Agency, such approval to be conclusively evidenced by the execution and delivery thereof. Section 6. The Chairman of the Authority, the Executive Director of the Authority, the Treasurer, the Secretary of the Authority, and any other proper officer of the Authority, acting singly, be and each of them hereby is authorized and directed to execute and deliver any and all documents and instruments, including any agreements with the Agency relating to the 2011 Bonds, and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated by the Indenture, the Purchase Contract, the Official Statement, this Resolution and any such agreements. Section 7. This Resolution shall take effect immediately upon its adoption. 2 DOCSOC/1488628v3/022092-0002 PASSED, APPROVED and ADOPTED this 24th day of May, 2011 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Chairman (SEAL) ATTEST: Secretary 3 DOCSOC/1488628v3/022092-0002 STATE OF CALIFORNIA SECRETARY'S CERTIFICATE COUNTY OF SAN BERNARDINO OF AUTHENTICATION CITY OF GRAND TERRACE I, , Secretary of the Grand Terrace Public Financing Authority, California, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted by said Authority at a regular meeting of said Authority held on the day of , 2011, and that the same was passed and adopted by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Secretary DOCSOC/1488628v3/022092-0002 ATTACHMENT No. 3 City Council Resolution RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, APPROVING THE ISSUANCE BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE OF TAX ALLOCATION BONDS, ISSUE OF 2011A AND ISSUE OF 2011B, FOR THE COMMUNITY REDEVELOPMENT PROJECT AREA AND MAKING CERTAIN DETERMINATIONS RELATING THERETO AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH- WHEREAS, the Community Redevelopment Agency of the City of Grand Terrace (the "Agency") is a redevelopment agency (a public body, corporate and politic) duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Community Redevelopment Law (Part 1 of Division 24 (commencing with Section, 33000) of the Health and Safety Code of the State of California; the "Law"), and the powers of the Agency include the power to issue bonds or notes for any of its corporate purposes; and WHEREAS, the Community Redevelopment Project (the "Redevelopment Project") was approved by Ordinance No. 25 adopted by the City Council of the City of Grand Terrace(the "City") on September 27,_ 1979 and amended by Ordinance No. 52 adopted by the City Council of the City on July 15, 1981. The redevelopment project area of the Redevelopment Project, as heretofore amended, is referred to as the "Project Area." The foregoing ordinances were adopted by the City Council in compliance with all requirements of the Law; WHEREAS, the Agency has previously issued its $13,000,000 Community Redevelopment Agency of the City of Grand Terrace Community Redevelopment Project Area Refunding Tax Allocation Bonds, Series 2004 (the "2004 Bonds") for the purpose of refunding certain indebtedness of the Agency and to provide moneys for projects benefiting low and moderate income housing in the Project Area; WHEREAS, as of the date hereof, 2004 Bonds are outstanding in the principal amount of $3,650,000; WHEREAS, the Agency and the City previously entered into a Joint Exercise of Powers Agreement, Grand Terrace Public Financing Authority, dated as of December 13, 1990 (the "Joint Powers Agreement"), which, at Section 3.01, delineates functions of certain officers; WHEREAS, the Agency and the City desire to amend the Joint Powers Agreement to designate the City Clerk as Secretary of the Grand Terrace Public Financing Authority (the "Authority"); DOCSOC/1488622v3/022092-0002 WHEREAS, the Agency wishes at this time to issue its Community Redevelopment Project Area Tax Allocation Bonds, Issue of 2011A (the "2011A Bonds") in an aggregate principal amount of not to exceed Twenty-Two Million Dollars ($22,000,000.00) and its Community Redevelopment Project Area Taxable Tax Allocation Bonds, Issue of 2011B (the "2011B Bonds") in an aggregate principal amount of not to exceed Seven Million Dollars ($7,000,000.00) for the purpose of providing moneys to finance the Redevelopment Plan, all pursuant to the provisions of Articles 10 and 11 of Chapter 3 of part 1 of Division 2 of Title 5 of the California Government Code (the "Bond Law"); WHEREAS, the 2011A Bonds and the 2011B Bonds (together, the "2011 Bonds") shall be subordinate obligations to the 2004 Bonds so long as the 2004 Bonds remain outstanding; WHEREAS, the 2011 Bonds will be issued pursuant to an Indenture of Trust dated as of June 1, 2011, by and between the Agency and U.S. Bank National Association, as trustee thereunder (the"Indenture"); NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AS FOLLOWS: 1. Each of the foregoing recitals is true and correct. 2. Subject to the provisions of the Indenture, the issuance of the 2011A Bonds in the aggregate principal amount of not to exceed Twenty-Two Million Dollars ($22,000,000.00) and the issuance of 2011B Bonds in the aggregate principal amount of not to exceed Seven Million Dollars ($7,000,000.00), all for the purposes set forth in the recitals hereof, and for other purposes related thereto, all of which constitute a "redevelopment activity" as such term is defined in Section 33678 of the California Health & Safety Code, is hereby authorized and approved pursuant to Section 33640 of the California Health&Safety Code. 3. The City Manager of the City and the other officers and members of staff having responsibility for the affairs of the City are hereby authorized to execute such documents and certificates necessary to assist the Agency in the issuance of the 2011 Bonds. 4. Subject to approval by the Agency, the first sentence of Section 3.01 of the Joint Powers Agreement is amended to read as follows: "Chairman of the Board shall be the Mayor of the City, Vice-Chairman shall be the Mayor Pro Tern of the City, and shall appoint as Secretary the City Clerk of the City." 5. This Resolution shall take effect immediately upon its adoption. 2 DOCSOC/1488622v3/022092-0002 PASSED, APPROVED AND ADOPTED this 24th day of May, 2011. Mayor of the City of Grand Terrace, California (SEAL) ATTEST: City Clerk of the City of Grand Terrace,California 3 DOCSOC/1488622v3/022092-0002 STATE OF CALIFORNIA CITY CLERK'S CERTIFICATE COUNTY OF SAN BERNARDINO RE ADOPTION OF RESOLUTION CITY OF GRAND TERRACE I, Brenda Mesa, City Clerk of the City of Grand Terrace, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City at a regular meeting of the City held on the 24th day of May, 2011, and that the same was passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk of the City of Grand Terrace, California DOCSOC/1488622v3/022092-0002 STATE OF CALIFORNIA CITY CLERK'S CERTIFICATE COUNTY OF SAN BERNARDINO OF AUTHENTICATION CITY OF GRAND TERRACE I, Brenda Mesa, City Clerk of the City of Grand Terrace, California, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. of the City Council of said City and that said Resolution was adopted at the time and by the vote stated on the above certificate, and has not been amended or repealed. City Clerk of the City of Grand Terrace, California DOCSOC/1488622v3/022092-0002 ATTACHMENT No. 4 Agency Resolution RESOLUTION NO. RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE AUTHORIZING THE ISSUANCE AND SALE OF TAX ALLOCATION BONDS, ISSUE OF 2011A AND ISSUE OF 2011B, FOR THE COMMUNITY REDEVELOPMENT PROJECT AREA, AND APPROVING THE FORM OF AN INDENTURE OF TRUST, OFFICIAL STATEMENT, PURCHASE CONTRACT, CONTINUING DISCLOSURE AGREEMENT AND RELATED DOCUMENTS AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the Community Redevelopment Agency of the City of Grand Terrace (the "Agency") is a redevelopment agency (a public body, corporate and politic) duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Community Redevelopment Law (Part 1 of Division 24 (commencing with Section 33000) of the Health and Safety Code of the State of California; the "Law"), and the powers of the Agency include the power to issue bonds or notes for any of its corporate purposes; and WHEREAS, the Community Redevelopment Project (the "Redevelopment Project") was approved by Ordinance.No. 25 adopted by the City Council of the City on September 27, 1979 and amended by Ordinance No. 52 adopted by the City Council of the City on July�15, 1981. The redevelopment project area of the Redevelopment Project, as heretofore amended, is referred to as the "Project Area." The foregoing ordinances were adopted by the City Council in compliance with all requirements of the Law; WHEREAS, the Agency has previously issued its $13,000,000 Community Redevelopment Agency of the City of Grand Terrace Community Redevelopment Project Area Refunding Tax Allocation Bonds, Series 2004 (the "2004 Bonds")for the,purpose of refunding certain indebtedness of the Agency and to provide moneys for projects benefting low and moderate income housing in the Project Area; WHEREAS, as of the date hereof, 2004 Bonds are outstanding in the principal amount of $3,650,000; WHEREAS, the Agency and the City previously entered into a Joint Exercise of Powers Agreement, Grand Terrace Public Financing Authority, dated as of December 13, 1990 (the "Joint Powers Agreement'), which, at Section 3.01,delineates functions of certain officers; WHEREAS, the Agency and the City desire to amend the Joint Powers Agreement to designate the City Clerk as Secretary of the Grand Terrace Public Financing Authority (the "Authority"); WHEREAS, the Agency wishes at this time to issue its Community Redevelopment Project Area Tax Allocation Bonds, Issue of 2011A (the "2011A Bonds") in an aggregate principal amount of not to exceed Twenty-Two Million Dollars ($22,000,000.00) and its Community Redevelopment Project Area Taxable Tax Allocation Bonds, Issue of 2011B (the "2011B Bonds") in an aggregate principal amount of not to exceed Seven Million Dollars ($7,000,000.00) for the purpose of providing moneys to finance the Redevelopment Plan, all pursuant to the provisions of Articles 10 DOCSOC/1488605v3/022092-0002 and 11 of Chapter 3 of part 1 of Division 2 of Title 5 of the California Government Code (the "Bond Law"); WHEREAS, the 2011A Bonds and the 2011B Bonds (together, the "2011 Bonds") shall be subordinate obligations to the 2004 Bonds so long as the 2004 Bonds remain outstanding; WHEREAS, subject to the conditions and requirements herein, the Agency wishes at this time to approve all matters relating to the issuance and sale of the 2011 Bonds; NOW, THEREFORE, THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: Section 1. Subject to the provisions of the Indenture referred to in Section 2 hereof, the issuance of the 2011A Bonds in the aggregate principal amount of not to exceed Twenty-Two Million Dollars ($22,000,000.00) and 2011B Bonds in the aggregate principal amount of not to exceed Seven Million Dollars ($7,000,000.00) on the terms and conditions set forth in, and subject to the limitations specified in the indenture of trust as referenced in Section 2 hereof(the "Indenture"), is hereby authorized and approved. The 2011A Bonds and the 2011B Bonds will be dated, will bear interest at the rates, will mature on the dates, will be issued in the form, will be subject to redemption, and will be as otherwise provided in the Indenture therefor as the same will be completed as provided in this Resolution. The proceeds of the sale of the 2011 Bonds shall be applied as provided in the Indenture Section 2. The Indenture in substantially the form submitted at this meeting and made a part hereof as though set forth in full herein, is hereby approved. The Chairman and the Secretary of the Agency are hereby authorized and directed to execute and deliver the Indenture in the form presented at this meeting with such changes insertions and omissions as may be requested by Bond Counsel and approved by the Chairman, said execution being conclusive evidence of such approval. Section 3. The Purchase Contract for the 2011A Bonds and the 2011B Bonds, respectively, among the Agency, Wedbush Securities Inc. and the Grand Terrace Public Financing Authority, in substantially the form submitted at this meeting and made a part hereof as though set forth in full herein, be and the same are hereby approved. The Executive Director of the Agency is hereby authorized and directed to execute the Purchase Contract in the form presented at this meeting with such changes, insertions and omissions as may be approved by the Executive Director, said execution being conclusive evidence of such approval. In no event shall such Purchase Contract as to the 2011A Bonds provide for underwriter's discount (exclusive of original issue discount) in excess of 1% of the principal amount of the Bonds or for a true interest rate in excess of 7% per annum, and in no event shall such Purchase Contract as to the 201113 Bonds provide for underwriter's discount (exclusive of original issue discount) in excess of 1.2% of the principal amount of the Bonds or for a true interest rate in excess of 9% per annum. Section 4. The preparation and delivery of an Official Statement, and its'-use by the Agency and Wedbush Securities Inc. (the "Underwriter"), in connection with the offering and sale of the 2011 Bonds, is hereby authorized and approved. The Official Statement shall be in substantially the form of the Preliminary Official Statement with such changes, insertions and omissions as may be requested by Bond Counsel or the Underwriter and approved by the Chairman of the Agency, such approval to be conclusively evidenced by the execution and delivery thereof. The Chairman is 2 DOCSOC/1488605v3/022092-0002 hereby authorized and directed to execute the final Official Statement and any amendment or supplement thereto, in the name of and on behalf of the Agency, and thereupon to cause the final Official Statement and any such amendment or supplement to be delivered to the Underwriter. Section 5. The Continuing Disclosure Agreement in substantially the form submitted at this meeting and made a part hereof as though set forth in full herein, is hereby approved. The Chairman and the Secretary of the Agency are hereby authorized and directed to execute and deliver the Continuing Disclosure Agreement in the form presented at this meeting with such changes insertions and omissions as may be requested by Bond Counsel and approved by the Chairman, said execution being conclusive evidence of such approval. Section 6. The Chairman of the Agency, the Executive Director of the Agency, the Treasurer of the Agency, the Secretary of the Agency, and any other proper officer of the Agency, acting singly, be and each of them hereby is authorized and directed to execute and deliver any and all documents and instruments, including any agreements with the Authority relating to the 2011 Bonds, and to do and cause'lo be done any and all acts and things necessary or proper for carrying out the transactions contemplated by the Indenture,the Purchase Contract, the Official Statement, the Continuing Disclosure Agreement,this Resolution and any such agreements. Section 7. U.S. Bank National Association is hereby appointed as Trustee and Dissemination Agent, Stradling Yocca Carlson & Rauth, a Professional Corporation is hereby appointed as Bond Counsel and Disclosure Counsel. Section 8. Subject to approval by the City Council, the first sentence of Section 3.01 of the Joint Powers Agreement is amended to read as follows: "Chairman of the Board shall be the Mayor of the City, Vice-Chairman shall be the Mayor Pro Tem of the City, and shall appoint as Secretary the City Clerk of the City." Section 9. This Resolution shall take effect immediately upon its adoption. IN WITNESS WHEREOF, this Resolution is adopted and approved the 24th day of May 2011. Chairman of the Community Redevelopment_Agency of the City of Grand Terrace (SEAL) ATTEST: Secretary of the Community Redevelopment Agency of the City of Grand Terrace 3 DOCSOC/1488605v3/022092-0002 t STATE OF CALIFORNIA SECRETARY'S CERTIFICATE COUNTY OF SAN BERNARDINO OF AUTHENTICATION CITY OF GRAND TERRACE I, Brenda Mesa, Secretary of the Community Redevelopment Agency of the City of Grand Terrace, California, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted by said Agency at a regular meeting of said Agency held on the 24th day of May, 2011, and that the same was passed and adopted by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Brenda Mesa, Secretary DOCSOC/1488605v3/022092-0002 STATE OF CALIFORNIA SECRETARY'S CERTIFICATE COUNTY OF SAN BERNARDINO OF AUTHENTICATION CITY OF GRAND TERRACE I, Brenda Mesa, Secretary of the Community Redevelopment Agency of the City of Grand Terrace, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. of said Agency and that said Resolution was adopted at the time and by the vote stated on the above certificate, and has not been amended or repealed. Brenda Mesa, Secretary DOCSOC/1488605v3/022092-0002 1 CALIPORNIA AGENDA REPORT MEETING DATE: May 24, 2011 Council Item ( X ) CRA Item ( X) TITLE: Public Hearing for the Sale of Agency-owned property at 12569 Michigan Street to Habitat for Humanity San Bernardino Area, Inc. for $1.00 to Construct Two Single Family Homes PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: City Council: Adopt the attached City Resolution exempting the application of California Health and Safety Code Section 33433 to Small Housing Projects. Agency: 1. Adopt the attached Agency Resolution approving the Sale of 12569 Michigan Street to Habitat for Humanity San Bernardino Area, Inc. for $1.00 to construct two affordable residences. 2. Approve the attached- Purchase and Sale Agreement, and Grant Deed and Affordability Covenant for signature by the Chairman. BACKGROUND: The Agency's Low- to Moderate-Income Housing Fund purchased the 0.5 acre (approximately 22,000 square feet) parcel at 12569 Michigan Street from the City on March 8, 2011, to develop affordable housing. The parcel is within a residential zoning district and requires a minimum lot size of 7,000 square feet for each residence. After receiving the Agency Board's direction, staff has been working with Habitat for Humanity San Bernardino Area Inc. to determine their interest in developing two or three homes under their self-help housing program. They are very interested in a Grand Terrace project for 2012, and are reviewing the related documents attached to this report. Habitat's Board of Directors will have met on May 19, 2011 to discuss CRA/CC Item: 2 approval of the Grand Terrace project. A board member will attend the Agency meeting to address the Agency Board. DISCUSSION: The sale or lease of real property owned by the Agency requires a public hearing be held. If the property has been purchased with tax increment funds, action by the City Council is also required. According to Health and Safety Code Section 33433, a report determining that the sales price is not less than the estimated fair market value is not required if the City Council adopts a resolution exempting small housing, projects. Construction of affordable housing is exempt from prevailing wage requirements, which is a requirement for other project types if the real property is sold for less than the fair market value. The City Attorney has prepared a Resolution of the City Council (Attachment 1) finding that this project is exempt from Section 33433. Health and Safety Code Section 33013 defines a small housing project and requires that the units (not more than four) be conveyed to persons or families of low and moderate income or to private parties to develop low to moderate residential structure(s) subject to affordable deed restrictions. An Agency Resolution (Attachment 2) has also been prepared for Agency review. The Resolution approves the sale of the property to Habitat for Humanity through a Purchase and Sale Agreement (Exhibit "A" to the Agency Resolution) and a Grant Deed and Affordability Covenant (Exhibit "B" to the Agency Resolution). The documents state that the sale is subject to the following terms: 1. One residence constructed on the property must be sold to and occupied by a very low,income person or family for a period of 45 years; 2. One residence constructed on the property shall be sold to and occupied by either a low or very low income person or family for a period of 45 years; 3. Breach of the affordability covenant will result in an automatic reversion of ownership to the Agency; 4. Habitat shall construct two residences on the property on or before June 30, 2014, or property ownership shall revert to the Agency; and, 5. Section 2.4 of the Purchase and Sale Agreement states that Habitat shall give preference to qualified buyers who are residents of the City of Grand Terrace. The Grand Deed and Affordability Covenant will be recorded by the County recorder and will run with the land. Any future change of ownership when the homes are completed would not release the covenant. The homes are built by volunteers and Habitat requires a minimum of 500 volunteer hours from the selected families for their "sweat equity" down payment. The sales price of $1.00 keeps development costs down, and Habitat will be seeking contributions for materials as well as volunteer labor. Staff recommends that the City and Agency approve the attached recommended documents and partner with Habitat for Humanity San Bernardino, Inc. to complete this project. The two residences will assist the City and Agency in meeting,their affordable housing requirements. According to the State's Regional Housing Needs Assessment, the City must accommodate 27 additional affordable units by 2014. FISCAL IMPACT: Costs incurred by the Agency include staff and City Attorney time, and the purchase of the property with $132,000 from the Agency's Low to Moderate Income Housing Fund. This amount will not be recovered and is considered a contribution to the project. Respectfully submitted: -PIYLV-eA� Soyc6 Powers Community and Economic Development Director Manager Approval: Betsy . Ada s, City Manager ATTACHMENTS: 1. City Council Resolution 2. Agency Resolution with Exhibits A (Purchase and Sale Agreement) and B (Grant Deed and Affordability Covenant) Attachment No. 1 City Council Resolution RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, REGARDING SALE AND/OR LEASE OF SMALL HOUSING PROJECTS WHEREAS, pursuant to Health and Safety Code Section 33433, prior to the disposition by the Redevelopment Agency of property purchased with tax increment monies pursuant to the Redevelopment Plan, the disposition shall first be approved by the City Council by resolution after a public hearing, which resolution is required to contain certain findings related to the fair re-use value of the property; and WHEREAS, pursuant to Health and Safety Code Section 33433 (3)(1), said findings shall not apply to the sale or lease of the small housing project, as defined in Health and Safety Code Section 33013 if the City Council adopts a resolution authorizes the disposition of a small housing project pursuant to statute; and WHEREAS, Health and Safety Code Section 33013 defines a small housing project as real property containing or proposed to contain a separate residential structure having not more than four (4) dwelling units and which is owed by the Agency and proposed to be conveyed to persons or families of low and moderate income or to private parties pursuant to an agreement to develop and maintain a low and moderate residential structure subject to a deed restriction limiting occupancy to persons and families of low or moderate income for a period of not less than thirty (30) years; and WHEREAS, the City Council desires that all such small housing projects be exempted from the application of Health and Safety Code Section 33433. NOW, THEREFORE, the City Council of the City of Grand Terrace does hereby make the following FINDINGS AND DETERMINATIONS: 1. The foregoing recitals are true and correct and incorporated hereat as if set forth in full. 2. That the City of Grand Terrace exempts the application of Health and Safety Code Sections 33433(a)(b) to the sale or lease of a small housing projects, as defined in Health and Safety Code Section 33013. PASSED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on May 24th, 2011. Mayor of the City of Grand Terrace Attest: City Clerk of the City of Grand Terrace I, BRENDA MESA, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No. was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 24th day of May, 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Brenda Mesa, City Clerk Approved as to form: City Attorney Attachment No. 2 Agency Resolution with Exhibits A. Purchase and Sale Agreement B. Grant Deed and Affordability Covenant RESOLUTION NO. CRA A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE, IN SAN BERNARDINO COUNTY, STATE OF CALIFORNIA, APPROVING THE SALE .OF CERTAIN PROPERTY TO THE HABITAT FOR HUMANITY SAN BERNARDINO AREA, INC. WHEREAS, the Community Redevelopment Agency of the City of Grand Terrace owns a vacant lot more particularly described as 12569 Michigan Street, Grand Terrace;California; and WHEREAS, the lot was acquired by the Agency utilizing tax increment funds; and WHEREAS, the lot is currently zoned for single family residential use; and WHEREAS, Habitat for Humanity San Bernardino Area, Inc. ("Buyer") desires to purchase the lot from the Agency in order to construct two (2) residences and sell one (1) residence to a qualified very low income buyer and one (1) residence to a qualified low or very low income buyer; and WHEREAS, Buyer has agreed to,give preference to residents of the City of Grand Terrace in selecting the initial purchasers. NOW, THEREFORE, BE IT RESOLVED the Grand Terrace Community Redevelopment Agency does hereby resolve as follows: Section 1. That the foregoing recitals are true and correct. Section 2. That the Agency hereby agrees to sell to Habitat for Humanity San Bernardino Area, Inc., the subject real property pursuant to a Purchase and Sale Agreement and Grant Deed and Affordability Covenant, attached hereto as Exhibits "A" and "B", respectively. _J PASSED, APPROVED AND ADOPTED at a regular meeting of the Community Development Agency of the City of Grand Terrace, Grand Terrace, California, held on the day of May, 2011. Chairman - 1 - Resolution No. CRA 11- Page 2 Attest: Secretary of the Grand Terrace Community Redevelopment Agency I, BRENDA MESA, Secretary of the Grand Terrace Community Redevelopment Agency, do hereby certify that Resolution No. CRA- was'introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the day of May, 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Brenda Mesa, Secretary Approved as to form: City Attorney -2- r r EXHIBIT "A" PURCHASE AND SALE AGREEMENT This Purchase and Sale Agreement ("Agreement'), dated this _day of May, 2011, is entered into by and between the Community Redevelopment Agency of the City of Grand Terrace, on one hand ("Seller"), and Habitat for Humanity San Bernardino Area, Inc., on the other hand("Buyer"). RECITALS A. Seller is the owner of that certain,real property ("Seller's Property") consisting of a single lot of vacant land, commonly known as 12569 Michigan Street, Grand Terrace, California Assessor's Parcel No. 1167-271-11. B. Subject to the terms and conditions set forth in this Agreement, Seller desires to sell and Buyer desires to purchase of Seller's Property as described on Exhibit A attached hereto (the "Property") and made a part hereof. C. The Property is subject to a deed restriction and covenant running with the land which limits the use and sale of the two residences to be constructed on the Property; one (1)to a low or very low income qualified buyer and one (1) to a very low income buyer; said covenant for a period of forty-five (45) years from the date of the initial sale of the residence(s). AGREEMENT ARTICLE I I.1 Sale and Purchase. Subject to the terms and conditions set forth in this Agreement, Seller agrees to sell the Property to Buyer and Buyer agrees to purchase the Property from Seller. I.2 Purchase Price. In consideration of the construction of two (2)low and very low income residences on the Property by Buyer, the total purchase price for the Property shall be one dollar($1.00), (the "Purchase Price"), receipt of which is hereby acknowledged by the Seller. I.3 Condition of Title. At Closing, Seller shall convey to Buyer good and marketable title in fee simple to the Property subject only to all easements, restrictions, or covenants of record which do not interfere with the use of the Property for the purposes, including,without limitation, current, non-delinquent real property taxes (the"Permitted Exceptions"). -3 - ARTICLE II REPRESENTATIONS AND WARRANTIES II..1 Representations and Warranties of Seller True and Correct. Seller hereby represents and warrants to Buyer that the following facts are true and correct as of the date hereof. (a) Power and Authority. Seller has the legal power, right and authority to enter into this Agreement and the instruments,referenced herein, and to consummate the transactions contemplated hereby. The individuals executing this Agreement and the instruments referenced herein on behalf of the Seller have the legal power, right and actual authority, to bind Seller to the terms and conditions hereof and thereof. Furthermore, Seller warrants that it has good and marketable title to the Property. (b) Requisite Action. All requisite action has been taken by Seller in connection with the entering into of this Agreement, the instruments referenced herein, and the consummation of the transactions contemplated hereby. (c) Validity. This Agreement and all documents required hereby to be executed by Seller are and shall be valid, legally binding obligations of and enforceable against Seller in accordance with their terms subject only to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles affecting or limiting the rights of contracting parties generally. Neither the execution and delivery of this Agreement and documents referenced herein, nor the consummation of the transactions contemplated herein, conflict with or result in the material breach of any terms or provisions of any contract, loan,or other agreement or instrument to which Seller is a party or affecting the Property. All consents, approvals and authorizations necessary for the execution of this Agreement and the consummation of the transactions contemplated herein by Seller have been or will be obtained. Seller has not sold,conveyed or entered into any contract for the sale of all or any portion of the Property or any rights incident thereto, nor do there exist any rights of first refusal or options to purchase the Property or any rights incident thereto. (d) Recitals. The information contained in the Recitals is true and correct. (e) Lawsuits and Claims. To Seller's actual knowledge, without any duty of inquiry or investigation, there are no pending actions, lawsuits, claims or judicial, municipal or administrative proceedings affecting all or any portion of the Property or in which Seller is a party by reason of Seller's ownership of the Property. To Seller's knowledge, there are no threatened or contemplated actions, lawsuits, claims or proceedings nor the existence of any facts which might give rise to such actions, lawsuits, claims or proceedings. During the Escrow period, Seller will not commence or defend any action with respect to the Property except upon such terms as are mutually acceptable to Seller and Buyer. (f) Condition of Property. Seller has not received notice of any violation of applicable governmental regulations relating to the Property, any existing or contemplated plan to widen or modify any street or highway contiguous to the Property (other than the Grading and -4- Improvements contemplated by this Agreement) or any other plan, study or effort of any applicable governmental authorities relating to the Property. (g) Taxes and Assessments. Seller has provided to Buyer all relevant information in its possession concerning real property taxes and any special assessments or bonds which may be-levied against the Property as a result of any existing public improvements or work, activities or improvements done to the Property by Seller. (h) Hazardous Materials. To Seller's actual knowledge, without any duty of inquiry or investigation, all operations or activities upon, or use or occupancy of the Property by Seller or any current occupant or user thereof are in compliance with,all state, federal and local laws and regulations governing or in any way relating to the generation,handling, manufacturing, treatment, storage, use, transportation, spillage, leakage, dumping, discharge or disposal (whether accidental or intentional)of any toxic or hazardous substances, materials or wastes,.including, without limitation, any hazardous material (as such terms are commonly defined or employed in accordance with applicable federal, state or local laws, codes, ordinances, rules and regulations). To the Seller's actual knowledge, without any duty of inquiry or investigation,there is not present upon the Property, or on any portion thereof, underground storage tanks, any hazardous material or any structures, fixtures, equipment or other objects or materials containing any hazardous material in violation of any applicable environmental law. (i) Changes. Seller shall promptly notify Buyer of any material, adverse change in any condition with respect to the Property or of any event or circumstance which makes any representation of warranty of Seller under this Agreement untrue or any covenant of Buyer under this Agreement incapable or less likely of being performed, it being understood that Seller's obligation to provide notice to Buyer shall in no way relieve Seller of any liability for a breach by Seller of any of its representations, warranties or covenants under this Agreement. (j) General Representation. No representation, warranty or statement of Seller in this Agreement or in any document, certificate of schedule prepared by Seller and to be furnished to Buyer pursuant to the terms of this Agreement contains,any untrue statement of material fact. Except for the representations and warrantees explicitly set forth above, Buyer hereby releases Seller, Seller's affiliates, officers, directors, partners, employees, and agents, and their respective heirs, successors,personal representatives and assigns, from and against any and all claims which Buyer may have and which arise out of or are in any way connected with this Agreement and the Property,including, without limitation, every physical and environmental condition of the Property. BUYER EXPRESSLY WAIVES ITS RIGHTS GRANTED UNDER CALIFORNIA CIVIL CODE SECTION 1542 AND UNDER ANY PROVISION OF LAW THAT PROVIDES A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT BUYER DOES NOT KNOW OR SUSPECT TO EXIST IN ITS FAVOR AT THE TIME OF EXECUTING THE RELEASE,WHICH IF KNOWN BY IT MUST HAVE MATERIALLY AFFECTED ITS AGREEMENT TO RELEASE SELLER. BUYER HEREBY AGREES, REPRESENTS AND WARRANTS THAT BUYER REALIZES AND ACKNOWLEDGES THAT FACTUAL MATTERS NOW UNKNOWN TO BUYER MAY HAVE GIVEN OR MAY HEREAFTER GIVE RISE TO CLAIMS WHICH ARE PRESENTLY UNKNOWN, -5 - UNANTICIPATED AND UNSUSPECTED, AND BUYER FURTHER AGREES, REPRESENTS AND WARRANTS THAT THE WAIVERS AND RELEASES HEREIN HAVE BEEN NEGOTIATED AND AGREED UPON IN LIGHT OF THAT REALIZATION, AND THAT BUYER NEVERTHELESS HEREBY INTENDS TO RELEASE, DISCHARGE AND ACQUIT SELLER FROM ANY SUCH UNKNOWN CLAIMS, AND THAT SUCH WAIVERS AND RELEASES FORM A MATERIAL PORTION OF THE CONSIDERATION GIVEN TO SELLER BY BUYER IN EXCHANGE FOR SELLER'S PERFORMANCE UNDER THIS AGREEMENT. BUYER HAS CONSULTED WITH LEGAL COUNSEL CONCERNING THE EFFECTS OF THIS WAIVER AND RELEASE ON BUYER'S RIGHTS AND REMEDIES RELATED TO THE PROPERTY. Initials: Buyer: Seller: 2.2 Representations of Buffer. Buyer is validly existing as a California Corporation and has performed all acts and obtained all approvals and consents, in each case as necessary to offer to purchase and to purchase the Property. Buyer has the full authority and power to comply with all of its obligations set forth in this Agreement. 2.3 Agreement to Construct and Sell Residences. Buyer agrees to construct two (2) residences on the Property on or before June 30, 2014 and sell one(1) to a qualified very low income buyer and one(1) to a qualified low or very low income buyer, subject to the a forty-five (45) year affordability covenant. Failure to construct the residences on or before June 30, 2014 is a material breach of this Agreement and shall result in a reversion of the Property to the Seller. 2.4 Preference to Grand Terrace Residents. In selecting the buyers of the two (2) residences following completion of construction, Buyer shall give preference to qualified buyers who are residents of the City of Grand Terrace. ARTICLE III COVENANTS OF SELLER AND BUYER III.1 License to Enter. Seller hereby agrees that Buyer and/or its agents, representatives, contractors and subcontractors may, conduct its own reasonable engineering studies, environmental assessment, soil and compaction tests and other tests and studies on the Property provided that (i) such activities do not impair the drainage of the Property; and (ii) Buyer shall be responsible for any damage caused thereby to the Property. Buyer shall be responsible for any liability, cost, claim, damage or injury caused by such entry and shall keep the Property free of any and all liens arising therefrom. Buyer shall indemnify and hold Seller harmless and defend Seller from and against such liability, loss,judgment, cost, claim, damage or injury, including but not limited to attorneys' fees and costs, arising out of or in connection with entry or testing on the Property by Buyer or its agents, representatives, contractors or subcontractors. -6 - ARTICLE IV MISCELLANEOUS PROVISIONS IV.1 Incorporation of Exhibits. All exhibits attached hereto and referred to herein ace incorporated in this Agreement as though fully set forth herein. IV.2 Attorneys' Fees. In any legal proceeding between Buyer and Seller seeking enforcement of or attempting to construe any of the terms and provisions of this Agreement, or in connection with any of the property described herein, including, without limitation, insolvency,bankruptcy, arbitration, declaratory relief or other litigation, the prevailing party in such action shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including, without limitation, service of process, filing fees, court and court reporter costs, investigation costs, expert witness fees and the cost of any bonds, and reasonable attorneys' fee. IV.3 Notices. All notices required or permitted by this Agreement shall be in writing and may be delivered in person(by hand delivery or professional messenger service)to either party or may be sent by registered or certified mail, with postage prepaid, return receipt requested or delivered by Express Mail of the U.S. Postal Service or Federal Express or any other courier service guaranteeing overnight delivery, charges prepaid, addressed as follows: If to Buyer at: Habitat for Humanity San Bernardino Area, Inc. Post Office Box 1550 Redlands, California 92373 , If to Seller at: Grand Terrace Community Redevelopment Agency 22795 Barton Road Grand Terrace, CA 92324 With a Copy To: John R. Harper Harper&Burns LLP 453 S. Glassell Street Orange, California 92866 Any such notice sent by registered or certified mail,return receipt requested, shall be deemed to have been duly given and received seventy-two (72) hours after the same is so addressed and mailed in Los Angeles, Orange, San Bernardino or Riverside Counties with postage prepaid. Notices delivered by overnight service shall be deemed to have been given twenty-four(24) hours after delivery of the same, charges prepaid, to the U.S. Postal Service or private courier. Any notice or other document sent by any other manner shall be effective only upon actual receipt thereof. Any party may change its address for purposes of this Section by -7 - - giving notice to the other party and to Escrow Holder as herein provided. IV A Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto and their respective successors and permitted assigns. IV.5 Relationship of Parties. The relationship of the parties to this Agreement shall be solely that of Buyer and Seller, and nothing herein contained shall be construed otherwise. IV.6 Governing Law. This Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the internal laws of the State of California. IV.7 Entire Agreement: Amendment. This Agreement contains all of the agreements of the parties hereto with respect to the matters contained herein and no prior or contemporaneous agreement or understanding, oral or written, pertaining to any such matters shall be effective for any purpose. No provision of this Agreement may be modified, waived, amended or added to except if in writing and signed by the party against which the enforcement of such modification, waiver, amendment or addition is or may be sought. IV.8 Pronouns. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the parties may require. IV.9 Headings. The headings of this Agreement are for purposes of reference only and shall not limit or define the meaning of the provisions of this Agreement. IV.10 Severability. If any paragraph, section, sentence, clause or phrase contained in this Agreement shall become illegal, null or void, against public policy, or otherwise unenforceable, for any reason, or shall be held by any court of competent jurisdiction to be illegal, null or void, against public policy, or otherwise unenforceable, the remaining paragraphs, sections, sentences, clauses or phrases contained in this Agreement shall not be affected thereby. IV.I I Waiver. The waiver of any breach of any provision hereunder by Buyer or Seller shall not be deemed to be a waiver of any preceding or subsequent breach hereunder. No failure or delay of any party in the exercise of any right given hereunder shall constitute a waiver thereof nor shall any partial exercise of any right preclude further exercise.thereof. IV.12 Further Assurances. Seller and Buyer each agree to do such further acts and things and to execute and deliver such additional agreements and instruments as the other may reasonably require to consummate, evidence or confirm the sale or any other agreement contained herein in the manner contemplated hereby. IV.13 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which shall constitute one and the same instrument. IV.14 Time of Essence. Time is of the essence in this Agreement as to all dates and time periods set forth herein. IV.15 Recitals. The provisions of the recitals of this Agreement shall constitute operative and enforceable provisions of this Agreement. - 8 - IN WITNESS WHEREOF, this Agreement has been executed by the parties on the dates set forth under their respective signatures below, notwithstanding that this Agreement is dated for convenience and reference as of the date and year first written above. BUYER: SELLER: , HABITAT FOR HUMANITY SAN COMMUNITY REDEVELOPMENT BERNARDINO AREA, INC. AGENCY OF THE CITY OF GRAND TERRACE By: By: Its: Executive Director Chairman Dated: , 2011 Dated: . 2011 -9- EXHIBIT'B" WHEN RECORDED MAIL TO: City Clerk City of Grand Terrace 22795 Barton Road Grand Terrace,CA 92313 SPACE ABOVE THIS LINE FOR RECORDER'S USE A.P.N.: 1167-271-11 (No Recording fee per Sec.6103) GRANT DEED AND AFFORDABILITY COVENANT FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the Grand Terrace Community Redevelopment Agency, a California Community Redevelopment Agency("Grantor"). does hereby GRANT to Habitat for Humanity San Bernardino area, Inc., a California corporation ("Grantee")the real property in the City of Grand Terrace, County of San Bernardino, State of California, described as: See Exhibit"A" attached Grantee shall construct two (2)residences on the Property on or before June 30, 2014. Failure to do so shall result in an automatic reversion of the Property to Grantor. This conveyance and all subsequent conveyances shall be subject the a Covenant running with the land requiring that one (1)residence constructed on the Property shall be owned and occupied'by persons or families of very low income and one (1)residence constructed on the Property shall be owned and occupied by persons or families of very low income for a period of forty-five (45) years from the date of the initial conveyance of the residence(s), pursuant to the requirements of the California Health and Safety Code Section 33413 (b) (2) (c). Breach of this Covenant shall result in an automatic reversion of the Property to the Grantor. DATED: GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY *ATTEST: By Brenda Mesa, City Clerk Its: Chairman State of California ) County of San Bernardino )ss. City of Grand Terrace ) On , before me, Brenda Mesa, a Notary Public in and for said State, personally appeared , personally known to me to be the person - 10- t whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person 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 i 11 Legal Description (APN 1167-271-11) COMMENCING AT THE NORTHWEST CORNER OF LOT 36, SECTION 5, TOWNSHIP 2 SOUTH, RANGE 4 WEST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE MAP OF LANDS OF EAST RIVERSIDE LAND COMPANY, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 6 OF MAPS, PAGE 44, RECORDS OF SAID COUNTY; THENCE SOUTH ALONG THE WEST LINE OF SAID LOT, 387.5 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 77.5 FEET; THENCE AT RIGHT ANGLES EAST AND PARALLEL TO THE NORTH LINE OF SAID LOT 36, 280 FEET; THENCE AT A RIGHT ANGLE NORTH)AND PARALLEL WITH THE WEST LINE OF SAID LOT 36, 77.5 FEET; THENCE AT RIGHT ANGLE WEST AND PARALLEL TO THE NORTH LINE OF SAID LOT 36, 280 FEET TO THE POINT OF BEGINNING. e 12 CALI'FORNIA AGENDA REPORT MEETING DATE: May 24, 2011 Council Item (X) CRA Item ( ) TITLE: Check Register No. 05-24-2011 PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION: Approve BACKGROUND: The Check Register for May 24, 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 $182,693.23 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 $79,836.15 and are summarized below. Some of the non-routine items include: 66763 Alliant Ins. 2011 Community Day Event Insurance - $655.00 Services (from events trust) 66764 ASCAP 2011 Community Day Music License Fee— $309.00 (from events trust) 66787 Loma Linda Animal Clinic— Rabies Vaccines & Micro $778.00 Animal Hospital Chip Implants 66794 Ritron Wireless Rechargeable Batteries-EOC $418.19 Solutions COUNCIL AGENDA ITEM NO. 66795 Riverside Winter Storm Damage—GT RoadNivienda $2,047.50 Highland Water Account 10-190-702-001-000 Some the larger items include: 66762 Albert A. Webb March-Town Square Construction $6,386.39 Management Services 66769 C.J.U.S.D. Grand Terrace High School Water Drainage- $130,000.000 Pico Street per MOU dated 1/27/2009 Payroll costs processed for period ending April 29, 2011: Date Period Payroll and payroll costs 04/29/11 Biweekly $79,836.15 FISCAL IMPACT: All disbursements are made in accordance with the adopted budget for FY 2010-11, Respectfully submitted, Bernie Simon Finance Director Manager Approval: zwolt- Betsy V Adarhs City Manager ATTACHMENTS: Check Register—May 24, 2011 vchlist ' Voucher List Page: 1 05/17/2011 10:45:39AM CITY OF GRAND TERRACE " Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66745 5/5/2011 001907 COSTCO#478 0478 08 0174 6,e C. CARE SUPPLIES 10-440-220-000-000 245.52 Total : 245.52 66746 5/9/2011 011092 METLIFE SBC KM05736710 00 MAY EMPLOYEE/DEPENDENT DENTAL INSURAN 10-022-61-00 1,051.98 Total : 1,051.98 66747 5/10/2011 011195 AMERICAN FIDELITY ASSURANCE CO 684183E April APRIL EMP PAID FLEX SPEND/DEPENDENT CAR[ 23-250-10-00 1,41166 Total : 1,411.66 66748 5/11/2011 011194 AMERICAN FIDELITY ASSURANCE CO A651178 April APRIL EMP PAID ACCID/SUPP LIFE/SUPP STD 23-250-20-00 545.46 Total : 545.46 66749 5/11/2011 004587 MANAGED HEALTH NETWORK 3200025910 Apr APRIL MHN INSURANCE — 10-450-142-000-000 11.98 21-175-142-000-000 6.66 10-185-142-000-000 6.66 32-200-142-000-000 11.66 10-625-110-000-000 433 10-440-142-000-000 133.20 34-800-142-000-000 2.66 10-380-142-000-000 5.00 34-400-142-000-000 663 10-120-142-000-000 10.00 10-125-142-000-000 10.00 10-140-142-000-000 15.00 10-172-142-000-000 6.33 10-175-142-000-000 1033 10-180-142-000-000 6.00 10-370-142-000-000 11.32 32-370-142-000-000 7.32 16-175-142-000-000 14.64 Total : 279.72 Page. 1 vchlist Voucher List Page: 2 05/17/2011 10:45:39AM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66750 5/11/2011 011196 FIDELITY SECURITY LIFE 3780258 April APRIL EMPLOYEE PAID VISION INSURANCE 10-022-61-00 16784 Total : 167.84 66751 5/12/2011 010241 FIRST AMERICAN TITLE COMPANY 05102011 Preliminary Title Report-12569'Michigan 34-400-251-000-000 39500 Total : 395.00 66752 5/12/2011 011138 SPARKLETTS 9637116 050111 April Bottled Water 10-190-238-000-000 8007 10-450-238-000-000 10.24 10-440-238-000-000 4519 10-805-238-000-000 14.23 Total : 149.73 66753 5/12/2011 010812 LOWE'S COMMERCIAL SERVICES 973443 Neighborhood Clean-up Project Supplies 32-600-305-000-000 2818 Total : 28.18 66754 5/12/2011 010664 SHELL FLEET MANAGEMENT 8000209687105 April Vehicle Fuel 10-175-272-000-000 669.33 Total : 669.33 66755 5/12/2011 003210 DEPT 32-2500233683 20764 MAINT SUPPLIES 10-195-245-000-000 46.02 10-450-245-000-000 16.14 3015876 LIBRARY EMPLOYEE RESTROOM PARTS 10-195-245-000-000 25.37 5011374 MAINT SUPPLIES 10-195-245-000-000 32.37 10-450-245-000-000 32.64 6013706 MAINT SUPPLIES 10-450-245-000-000 18.12 9012339 MAINT SUPPLIES 10-175-218-000-000 122.33 9012343 MAINT SUPPLIES 10-195-246-000-000 7.91 Page. 2 vchlist Voucher List Page: 3 w 05/17/2011 10:45:39AM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66755 5/12/2011 003210 DEPT 32-2500233683 (Continued) Total : 300.90 66756 5/12/2011 006720 SO.CA.EDISON COMPANY April 2011 April Energy Usage 16-510-238-000-000 5,601.75 10-805-238-000-000 703.24 26-600-238-000-000 49.80 26-601-238-000-000 41.50 26-602-238-000-000 58.10 Total : 6,454.39 66757 5/12/2011 006730 SO.CA.GAS COMPANY April 2011 April Natural Gas Usage 10-1907238-000-000 45849 10-440-238-000-000 5014 10-175-272-000-000 7.80 10-440-272-000-000 2.60 34-800-272-000-000 2.60 Total : 521.63 66758 5/12/2011 010218 CHEVRON &TEXACO CARD SERVICES 29799873 April Vehicle Fuel 10-440-272-000-000 75.43 10-175-272-000-000 214.89 34-800-272-000-000 66.89 Total : 357.21 66759 5/16/2011 011110 TIME WARNER CABLE May 844840 72 MAY CABLE & INTERNET SRV-SR CNTR 10-805-238-000-000 121.28 Total : 121.28 66760 5/16/2011 001907 COSTCO#478 0478 12 0037 5< C CARE SUPPLIES 10-440-220-000-000 186.24 Total : 186.24 66761 5/24/2011 010019 5 POINT AUTO SERVICE 16488 CNG Van Repair 10-440-272-000-000 879.37 Total : 879.37 66762 5/24/2011 011143 ALBERT A. WEBB ASSOCIATES 110876 MARCH TOWN SQUARE CONSTRUCTION MGMT 32-600-323-003-000 6,386.39 Page: 3 vchlist Voucher List Page: 4 05/17/2011 10:45:39AM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66762 5/24/2011 011143 ALBERT A. WEBB ASSOCIATES (Continued) Total : 6,386.39 66763 5/24/2011 010730 ALLIANT INSURANCE SERVICES, ATTN E36626 Event Insurance-2011 Community Day 23-200-12-00 65500 Total : 655.00 66764 5/24/2011 011198 ASCAP 05112011 Community Day Music License Fee 23-200-12-00 30900 Total : 309.00 66765 5/24/2011 001383 BARR DOOR INC 14733 Front Door Repair-Public Works Office 10-195-245-000-000 292.63 Total : 292.63 66766 5/24/2011 001683 CA. STATE DEPT OF CONSERVATION 3rd Qtr 2011 3rd Qtr Strong Motion Mapping Fees 10-700-01 -3.04 23-200-21-00 60.86 Total : 57.82 66767 5/24/2011 001740 CDW GOVERNMENT INC XCC2696 UPS BACKUP FOR CITY HALL PHONE SYSTEM 10-190-238-000-000 59.41 Total : 59.41 66768 5/24/2011 011031 CINTAS CORPORATION#150 150360659 C. CARE PAPER GOODS & SUPPLIES 10-440-228-000-000 190.30 150369798 C. CARE PAPER GOODS & SUPPLIES 10-440-228-000-000 190.30 Total : 386.60 66769 5/24/2011 001860 COLTON JOINT UNIFIED SCHOOL 05112011 GT High Storm Water Drainage-Pico Street 32-600-303-000-000 130,000.00 Total : 130,000.00 66770 5/24/2011 011166 CORNERSTONE RECORDS MANAGEME10160426 APRIL ARCHIVE TAPE STORAGE 10-140-250-000-000 55.00 10-380-250-000-000 55.00 Total : 110.00 Page: 4 vchlist Voucher List Page: 5 05/17/2011 10:45:39AM CITY OF,GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66771 5/24/2011 001950 DATA QUICK B1-1921488 April Subscription Services 10-370-250-000-000 43.50 10-380-250-000-000 43.50 34-800-220-000-000 43.50 Total : 130.50 66772 5/24/2011 002082 DISCOUNT SCHOOL SUPPLY D13962870101 SCHOOL AGE SUPPLIES 10-440-223-000-000 5545 Total : 55.45 66773 5/24/2011 002710 FOX OCCUPATIONAL MEDICAL CT 68679-31937 APRIL NEW EMPLOYEE PHYSICALS 10-190-224-000-000 236.00 Total : 236.00 66774 5/24/2011 002740 FRUIT GROWERS SUPPLY 90762619 MAINT SUPPLIES 10-450-245-000-000 25.55 90771414 MAINT SUPPLIES 10-450-245-000-000 1832 Total : 43.87 66775 5/24/2011 002930 GRAINGER 9522149245 AA/AAA/C/D/9V Batteries-EOC- 10-808-210-000-000 121.12 Total : 121.12 66776 5/24/2011 010164 GREAT-WEST PR End 4/29/11 Contributions for PR End 4/29/11 10-022-63-00 4,978.36 Total : 4,978.36 66777 5/24/2011 010752 GST INC. JO1316125 Toner-Code Enforcement Printer 34-800-210-000-000 110.93 JO1316494 Waste Toner-C. Enforcement Printer 34-800-210-000-000 106.82 JO1316709 JETDIRECT 620N E1O 10-1006TX 10-380-249-000-000 389.33 JO1316718 Toner and Imaqinq Unit 34-800-210-000-000 279.74 Page: 5 vchlist Voucher List Page: 6 05/17/2011 10:45:39AM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66777 5/24/2011 010752 GST INC (Continued) SVCM101808 PRODUCT RETURN 10-370-210-000-000 -702.53 Total : 184.29 66778 5/24/2011 003152 HARPER & BURNS LLPN April 2011 April Leqal Services 34-400-251-000-000 870.00 10-160-250-000-000 4,612.50 32-200-251-000-000 3,742.50 Total : 9,225.00 66779 5/24/2011 '010632 HIGH TECH SECURITY SYSTEMS 96035 JUNE SECURITY CAMERA MAINT AGREEMENT 10-195-247-000-000 20.00 10-450-246-000-000 60.00 Total : 80.00 66780 5/24/2011 003224 HYDRO-SCAPE PRODUCTS INC. 06582882_-00 LANDSCAPE MAINT SUPPLIES 10-450-245-000-000 182.29 06582899-00 LANDSCAPE MAINT SUPPLIES 10-450-245-000-000 12609 Total : 308.38 66781 5/24/2011 011197 INDEPENDENT STATIONERS, INC. IN-000036534 TONER CARTRIDGES/OFFICE SUPPLIES 10-125-210-000-000 164.09 10-120-210-000-000 573.54 Total : 737.63 66782 5/24/2011 002727 J.R. FREEMAN COMPANY 461909-0 OFFICE SUPPLIES 10-125-210-000-000 141 04 Total : 141.04 66783 5/24/2011 003850 JANWING OF CA_., INC. LAX05110935 MAY C. CARE JANITORIAL SERVICES 10-440-244-000-000 975.00 Total : 975.00 66784 5/24/2011 003856 JON'S FLAGS & POLES F65819 Two Flaqs for City Hall 10-195-245-000-000 122.89 Page 6 vchlist Voucher List Page: 7 05/17/2011 10:45:39AM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66784 5/24/2011 003856 JON'S FLAGS & POLES (Continued) Total: 122.89 66785 5/24/2011 010773 KELLAR SWEEPING INC 5875 APRIL STREET SWEEPING SERVICES 16-900-254-000-000 4,200.00 Total : 4,200.00 66786 5/24/2011 011158 L-1 ENROLLMENT SERVICES 360910764 February Fingerprintinq-C.Care 10-440-228-000-000 184.00 Total : 184.00 66787 5/24/2011 010369 LOMA LINDA ANIMAL HOSPITAL Feb 2011 ANIMAL CLINIC RABIES VACCINES/MICROCHIPS 10-200-15 77800 Total : 778.00 66788 5/24/2011 006780 MESA, BRENDA 05162011 Reimburse Notary Public Bond/Oath Fees 10-125-250-000-000 83.00 Total : 83.00 66789 5/24/2011 004670 MIRACLE MILE CAR WASH 779637 JAN-APR VEHICLE MAINTENANCE 10-175-272-000-000 15.00 10-440-272-000-000 3.00 Total : 18.00 66790 5/24/2011 005400 OFFICE DEPOT 561945590001 Office Supplies 10-185-210-000-000 28.38 562840324001 Toner Cartridges 10-370-210-000-000 29696 562840538001 Office Supplies 10-370-210-000-000 188.51 10-190-220-000-000 51.04 562840540001 Office Supplies 10-370-210-000-000 650 Total : 571.39 66791 5/24/2011 005400 OFFICE DEPOT 562320009001 Office Supplies 10-172-210-000-000 56.44 10-175-210-000-000 56.44 Page: 7 vchlist Voucher List _Page: 8 05/17/2011 10:45:39AM CITY OF GRAND TERRACE Bank Code : bofa Voucher Date Vendor Invoice Description/Account Amount 66791 5/24/2011 005400 OFFICE DEPOT (Continued) Total : 112.88 66792 5/24/2011 005586 PETTY CASH 05122011 Replenish C Care Petty Cash 10-440-220-000-000 17.45 10-440-223-000-000 50.54 10-440-228-000-000 134.61 10-440-272-000-000 20.50 Total : 223.10 66793 5/24/2011 010171 SIEMENS INDUSTRY INC RR-108386 APRIL ROUTINE SIGNAL MAINTENANCE 16-510-255-000-000 451.68 Total : 451.68 66794 5/24/2011 011167 RITRON WIRELESS SOLUTIONS INC 2754354 Rechargeable Radio Batteries 10-808-221-000-000 41819 Total : 418.19 66795 5/24/2011 006285 RIVERSIDE HIGHLAND WATER CO 2292 Winter Storm Damage-GT Rd./Vivenda 10-190-702-001-000 2,047.50 Total : 2,047.50 66796 5/24/2011 006681 SMART& FINAL 05092011 Trans C. CARE PAPER GOODS &SUPPLIES 10-440-223-000-000 80.48 Total : 80.48 66797 5/24/2011 006898 SYSCO FOOD SERVICES OF L.A. 105040431 6 C CARE FOOD &SUPPLIES 10-440-220-000-000 55962 105110331 3 C. CARE FOOD & SUPPLIES 10-440-220-000-000 625.22 Total : 1,184.84 66798 5/24/2011 006920 TAB PRODUCTS COMPANY 2016663 City Clerk Records Office Supplies 10-125-210-000-000 8301 Total : 83.01 66799 5/24/2011 007034 TRANSPORTATION ENGINEERING 1118 March Traffic Eng Services 10-175-255-000-000 1,887.50 Page: 8 vchlist Voucher List Page: 9 05/17/2011 10:45:39AM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66799 5/24/2011 007034 TRANSPORTATION ENGINEERING (Continued) Total : 1,887.50 66800 5/24/2011 007220 UNDERGROUND SERVICE ALERT 2011040285 April Dig Alert Tickets 16-900-220-000-000 45.00 Total : 45.00 66801 5/24/2011 010693 UNITED WAY PR END 4/15 & PR End 4/15 &4/29 Donations 10-022-65-00 125.00 Total : 125.00 66802 5/24/2011 007880 WEST GROUP 822830092 Apr/May CA Code Updates 10-125-250-000-000 541.84 Total : 541.84 66803 5/24/2011 007854 WESTERN EXTERMINATORS CO 558815 APRIL PEST CONTROL SERVICES 10-195-245-000-000 12500 10-440-245-000-000 144.00 10-805-245-000-000 33.00 Total : 302.00 59 Vouchers for bank code : bofa Bank total : 182,693.23 59 Vouchers in this report Total vouchers : 182,693.23 Page: 9 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 I certify that to the best of my knowledge, the afore-listed checks for payment of City and Community Redevelopment Agency liabilities have been audited by me and are necessary and appropriate for the operation of City and Agency. Bernie Simon, Finance Director PENDING CITY COUNCIL APPROVAL CITY OF GRAND TERRACE CITY COUNCIL MINUTES REGULAR MEETING MAY 24,2011 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 May 24, 2011 at 4:30 p.m. PRESENT: Walt Stanckiewitz, Mayor Lee Ann Garcia, Mayor Pro Tem. Darcy McNaboe, Councilmember Bernardo Sandoval, Councilmember Gene Hays, Councilmember Betsy M. Adams, City Manager Brenda Mesa, City Clerk Bernard Simon, Finance Director Joyce Powers, Community&.Economic Development Director Richard Shields, Building & Safety Director John Harper, City Attorney Detective.Martin, San Bernardino County Sheriff's Department Rick McClintock, San Bernardino County Fire Department ABSENT: None CONVENE THE JOINT CRAXITY COUNCIL MEETING AT 4:30 P.M. CRAXITY COUNCIL - CLOSED SESSION 1. Labor Relations per GC54957.6 2. Closed Session- Conference with Legal Counsel -Potential Litigation GC54956.9 (b) - One Case Mayor Stanckiewitz announced that the Agency and Council met in Closed Session to discuss Labor Relations per GC54957.6 and held a Conference with Legal Counsel - Potential Litigation GC54956.9 (b) - One Case and there was no reportable action taken. Mayor Stanckiewitz convened the Public Financing Authority,Community Redevelopment Agency and the City Council Meeting at 6:15 p.m. The meeting was opened.with an Invocation by Mayor Pro Terri Lee.Ann Garcia, followed by the Pledge of Allegiance-led by City Attorney John Harper. AUTHORIZATION TO ISSUE REDEVELOPMENT TAX ALLOCATION BONDS A: Actions by Public Financing?Authority COUNCIL AGENDA ITEM NO.j Council Minutes 05/24/2011 Page 2 1: .Resolution of Public Financing Authority Establishing Regular Meeting , Dates GTPFA-201 1-01 MOTION BY AUTHORITY MEMBER MCNABOE, SECOND BY AUTHORITY MEMBER HAYS, CARRIED 5-0, to approve a Resolution of the Public Financing Authority Establishing Regular Meeting Dates. 2. Authorization to Issue Redevelopment Tax Allocation Bonds GTPFA-2011-02 MOTION BY AUTHORITY MEMBER SANDOVAL, SECOND BY AUTHORITY MEMBER MCNABOE, CARRIED 5-0, to Approve a Resolution Approving the Forms of an Indenture of Trust,Purchase Contract, Continuing Disclosure Agreement and an Official Statement and Authorizing the Execution of the Purchase Contract Relating to the Issuance of the Community Redevelopment Agency of the -City of Grand Terrace's Tax Allocation Bonds Issue of 201 IA and Issue of the 2011B for the Community Redevelopment Project Area and Approving Certain Action in Connection , Therewith. B. Actions of the City Council 1'. Approve the Issuance by the Agency of Redevelopment Tax Allocation Bonds CC-2011-40 MOTION BY COUNCILMEMBER HAYS, SECOND BY COUNCILMEMBER MCNABOE,CARRIED 5-0,to approve a Resolution Approving the Issuance by the Community Redevelopment Agency of the City of Grand Terrace of Tax Allocation -Bonds,Issue of 2011 A and Issue 2011 B,for the Community Redevelopment Project Area and Making Certain Determination Relating Thereto and Authorizing Certain Other Actions in Connection Therewith.- C. Actions by Community Redevelopment Agency 1. Authorization to Issue Redevelopment Tax Allocation Bonds CRA-2.011-31 MOTION BY AGENCY MEMBER MCNABOE, SECOND BY AGENCY MEMBER HAYS,CARRIED 5-0,to approve a Resolution Authorizing the Issuance and Sale of Tax Allocation Bonds, Issue of 2011A and Issue of 2011B, for .the Community Redevelopment.Project Area, and Approving the Form of an Indenture of Trust, Official Statement,Purchase Contract, Continuing Disclosure Agreement and Related Documents and Authorizing Certain Other Actions in Connection Therewith. Council Minutes 05/24/2011 Page 3 Mayor Stanckiewitz adjourned the Public Financing Authority Meeting at 6:55 p.m. 1. Approval of 05-10-2011 and 05-12-2011 CRA Minutes CRA-2011-32 MOTION BY AGENCY MEMBER HAYS, SECOND BY VICE-CHAIRMAN GARCIA,CARRIED 5-0,to accept the May 10,201.1 and May 12,2011 Community ' Redevelopment Agency Minutes. 2. Joint Public Hearing for the Sale of Agency-owned Property at 12569 Michigan Street to Habitat for Humanity San Bernardino Area,Inc.For$1.00 to Construct Two Single Family Homes Community and Economic Development Director; Joyce Powers,.indicated the that the Agency's Low-to Moderate-Income Housing Fund purchased the 0.5 acre parcel at 12569 Michigan Street from the City on March 8, 2011,to develop affordable housing. Staff has been working with Habitat for Humanity San Bernardino Area, Inc. to determine their interest in developing two or three homes under their self-help housing program. They have expressed interest in a Grand Terrace project for 2012. Their Board of Directors will meet on May 19, 2011 to discuss the approval of the Grand Terrace project. She outlined the various conditions that would be approved through resolutions of the City Council and Redevelopment Agency. She stated that staff is recommending that the City and Agency approve the resolutions and partner with Habitat for Humanity San- Bernardino, Inc. to ' complete the project. She indicated that the residences that will.be constructed will assist the City and Agency in meeting their affordable housing requirements. Mayor Stanckiewitz opened the public hearing for discussion. There being none,he returned discussion to the Council/Agency. Councilmember Bernardo Sandoval,questioned what safeguards would be put.into place to ensure that the homes that are built fit in with the neighborhood around them. Community and Economic Development Director Powers,responded_that the project would be reviewed and processed through the Planning Department. Mayor.Walt Stanckiewitz, requested clarification on what low-income is and what the threshold is for low-income. Community and Economic Development Director Powers,responded that she didn't bring that information with her to the meeting,however,the medium income for a family of four is in the$70,000.00 range. She would suspect that it would be in the$50,000.00 range and stated that she will get that information to the Council. Council Minutes 05/24/2011 Page 4 Mary Rose, Director of Habitat for Humanity.San Bernardino Area, responded that they follow HUD-guidelines. Councilmember Gene Hays, questioned how they will go about generating the pool of applicants that would be potential homeowners. M ,.Rose,.responded that they start out with an information evening that is by an invitation that is published in the paper or people who have contacted them. They are given an application packet. They do background checks,credit checks and employment verification and a home visit. Councilmember Darcy McNaboe,questioned if the requirement through the covenant is that a low or very low income family live in the-homes.for 45 years, what type of follow-up is done to ensure that the houses are being maintained. Mari Rose, responded that they have a family partner that works with them and maintains a relationship with them. Councilmember McNaboe, questioned what would be done if a.family is failing to keep up to standards, what would happen. Mga Rose, responded that they will meet with them and work out a solution. Councilmember McNaboe, questioned if they have ever been in a position to remove a family. Mari Rose,.stated that they have come close but no. Mayor Pro Tem.Lee Ann Garcia,questioned what type of philosophy Habitat for Humanity has in their efforts to making the families feel a part of the already established neighborhoods. Mary Rose,responded that they reach out to-the neighbors so that they can get acquainted with the volunteers-and invite them to get involved. CC-2011-41 MOTION BY COUNCILMEMBER MCNABOE, SECOND BY COUNCILMEMBER HAYS,.CARRIED 5-0,to.adopt a Resolution exempting the application of California Health and Safety Code Section 33433 to Small Housing Proj ects. CRA-2011-33 MOTION BY AGENCY MEMBER MCNABOE, SECOND BY AGENCY MEMBER SANDOVAL, CARRIED 5-0,to adopt a Resolution approving the Sale Council Minutes 05/24/2011 Page 5 of 12569 Michigan Street to Habitat for Humanity San Bernardino Area, Inc. For $1.00 to construct two affordable residences. CRA-20.11-34 MOTION BY AGENCY MEMBER SANDOVAL, SECOND BY AGENCY , MEMBER HAYS, CARRIED 5-0,to approve a Purchase and Sale Agreement,and Grant Deed and Affordability Covenant for Signature by the Chairman. Chairman Stanckiewitz adjourned the Community Redevelopment Agency Meeting at 7:10 p.m. ITEMS TO DELETE Mayor Stanckiewitz.indicated that Item 2B. Women of Distinction will be continued to June 14, 2011 City Council Meeting. SPECIAL PRESENTATIONS A. Water.Awareness Poster Contest Winner- Grand Terrace Elementary School Frank Sanchez,, Riverside Highland.Water Company, indicated that each year Riverside Highland Water Company adopts Grand Terrace Elementary School and as a part of their program the students participate in the Water Awareness Poster Contest. He introduced Cynthia Coello, Principal of Grand Terrace Elementary School who will introduce -the winners of the contest. �J Cynthia Coello,Principal, Grand Terrace Elementary School,announced all of the winners of the contest. She thanked the Council for the opportunity. C. Chamber of Commerce Business of the Month Sally McGuire,.President, Grand Terrace Chamber of Commerce, announced that Tim's Mobile Truck Repair is the Grand Terrace Area Chamber of Commerce Business of the Month. Tim Lundstrum,Owner,Tim's Mobile Truck Repair,thanked the Council and Chamber f6r the.recognition. He gave an overview of what his business does. CONSENT CALENDAR CC-2011-42 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEM13ER SANDOVAL, CARRIED 5-0,to approve the following Consent Calendar Items: 3A.. Approve Check Register No. 05/24/2011 Council Minutes 05/24/2011 Page 6 3B. Waive Full Reading of Ordinances on Agenda - 3C. Approval of Minutes of 05/10/2011 and 5/12/2011 3D. Approve San Bernardino Cal-ID Contract PUBLIC COMMENT -None COUNCIL REPORTS Councilmember Bernardo Sandoval,thanked those who came to the meeting-. He feels that the information that will be presented-at the meeting is a critical moment for the City. The challenges that the Council is faced with are very serious. The solutions to the financial challenges do not lay in City Council, City Staff or on the residents. It is us all together coming together as a community to find solutions and to find methods to address the issues. He feels that this moment will be a defining moment. He is not taking this situation lightly and he is personally committed to doing everything possible to maintain the solvency of the City. He cares deeply about the community and he will do everything that he can to preserve this great City. Councilmember Gene Hays,.reported that he had an opportunity to spend a nice amount of time with his friend that is a police officer with the Redland Police Department. He spoke to him with regards to the types of crimes that have been going on in Grand Terrace. He suggested that the City look into using a GPS device that is used as bait and when the perpetrator goes for the item they are able to apprehend them within 6 minutes. He indicated that it is very inexpensive. He feels that it would be an effective way to combat these crimes. Councilmember Darcy McNaboe,reported that on May 19 she attended the San Bernardino Valley Municipal Water District Advisory Committee and Water Policy. The group meets quarterly and they look at water usage in the region. One of the-issues that they are looking at is that the whole region is going to need to reduce their water usage by 20% by the year 2020. On June 4th the San Bernardino Home Depot on Hospitality Lane will be giving 50% . off to gardenfriendly plant sales. There will be a demonstration garden at Cal State San Bernardino which will be open for the public. It will be an area where you can get ideas on how to plan out your garden so that you aren't using as much water. Angela Dissenger,the Principal of the New High School in Grand Terrace,gave a presentation to the School Board and it gives an overview of what the new high school is going to look like. They are still scheduled to open August of 2012. They will be enrolling students from 911, 101h and 1 lth grade. They will be looking at full sports programs as well as academics and full activities Programs. She questioned if the Council could invite the Principal to come to a Council Meeting to give the same presentation that she gave the school board. She reported that on June 1 and 2" she will be traveling with the Riverside Chamber of Commerce group to Sacramento. They will be talking to legislators there and she is hoping to get a_better feeling ' of how things are really going with the Redevelopment Agency, as far as the budget and Council Minutes 05/24/2011 Page 7 other budgetary items. She feels that.the only people that really know what is going on are those in Sacramento. She wished everyone.a happy Memorial Day. , Mayor Pro Tem Lee Ann Garcia,echoed the sentiments of Councilman Sandoval. She stated that difficult times lie ahead for the City. Everyone is going to rise to the occasion to get through this difficult time. She feels that there are some lessons to be learned from the people that have been around for a long time. She feels that the founding principles are something that they can benefit from. She wants to represent the residents and business owners in town and.encouraged them to stay involved through the process. She liked the GPS 'idea that Councilmember Hays brought up. She stated that the Women of Distinction recognition will be done at the June 14"' City Council Meeting. Mayor Walt Stanckiewitz,reported that on Friday someone tried to pass a counterfeit$50.00 bill. He wanted everyone to be aware of this going on. He suggested that staff look into restructuring the format for all.future Council Meetings to provide for Special Presentation at the beginning of the agenda. PUBLIC HEARINGS -None UNFMSHED BUSINESS -None NEW BUSINESS 8A. Presentation of the General FundFinancial Sustainability Model Sylvia Robles, Orangewood Court, stated that the City is in some interesting times. The issue on the financial sustainability study for her is she would like the Council to look at the fact that the League of California Cities has a proposal that is doing a little bit ofyielding on first year as far as RDA. Also,the things that they are doing aren't going to give us instant money to handle this years problem. She stated that we are a-sub-unit of.the State and they can decide what part of the portion of the property tax assessment that can be re-organized and what we can keep. Once we know what our core baseline budget is of essential services, we need to get on a dual track asking Assemblyman Morell to introduce a bill to'grant us that bit of money that we need. If they are going to take tax increment money away that they give us that money to operate our baseline part of the City. Also, benefit assessment districts could be formed. She feels that the City needs to look at getting the tax base re-designated to general property tax to the City. City Managersy Adams, indicated that on April 12, 2011 the Council voted to retain Rosenow Spevacek Group,Inc. To prepare a General Fund Financial Sustainability Model which includes a forecast of revenues and expenditures. She introduced Jim Simon from RSG who gave a presentation of the completed model. Council Minutes 05/24/2011 Page 8 8B. Professional Services for Sewer User Billing System Review and Potential Ordinance Revision(Black&Veatch Management Consulting) CC-2011-43 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEMBER SANDOVAL,CARRIED 5-0,to approve a Professional Service Agreement between the City of Grand Terrace and Black & Veatch Management Consulting and to appropriate$31,920 from the available equity in the Wastewater Disposal Fund(21) to Professional Services, Account.No. 21-.175-255. 8C. 2011-2012 Landscaping&Lighting Assessment District 89-1 CC-2011-44 MOTION BY MAYOR PRO TEM GARCIA; SECOND BY COUNCILMEMBER SANDOVAL, CARRIED 5-0;to Approve a Resolution Ordering the City Engineer to Prepare Plans,Specification,Cost Estimates,Diagram and Assessment and Report . Pursuant to the Provisions of Division 15,Part 2 of the Streets and Highways Code of the State of California, for Proceedings for the Annual Assessment Levy after Formation of a District, Approve the Resolution Approving the Engineer's Report for the Annual Levy of an Assessment for the Fiscal Year 2010-2011 in a District Within Said City and a Resolution Declaring its Intention to Provide for an Annual Levy and Collection of Assessments for Certain Maintenance in an Existing District, Pursuant to the Provisions of Decision 15, Part 2 of the Street and Highways Code of the State of California,and Setting a Time and Place for the Public Hearing to be held on June 14, 2011. 8D. Selection Process for City Attorney Services Request for Proposal It was the consensus of the Council to see all of the Proposals submitted for City Attorney Services.and for the Council to come up with a ranking system that the Council will follow. 8E. Special Assessments and Liens for Delinquent Non-Owner Occupied/Rental Property . Program Fees and Fines. CC-2011-45 MOTION BY MAYOR STANCKIEWITZ, SECOND BY COUNCILMEMBER MCNABOE, CARRIED 5-0, to adopt a Resolution confirming delinquent Non- owner Occupied/Rental Property Program fees and fines for the 2010 calendar year and authorize.special assessments against the parcels listed in Exhibit "A" of.the Resolution. CLOSED SESSION -None Mayor Stanckiewitz adjourned the meeting at 8:40 p.m.,-until the next City Council Meeting which .is scheduled to be held on Thursday, June 14, 2011 at 6:00 p.m. Council.Minutes 05/24/2011 Page 9 CITY CLERK of the City of Grand Terrace MAYOR of the City of Grand Terrace Pending Public Financing Authority Approval CITY OF GRAND TERRACE PUBLIC FINANCING AUTHORITY MINUTES REGULAR MEETING-MAY 24, 2011 A regular meeting of the Public Financing Authority,City of Grand Terrace,was held in the Council Chambers,Grand Terrace Civic Center,22795 Barton Road,Grand Terrace,California,on May 24, 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 Bernard Simon, Finance Director Joyce Powers, Community&Economic Development Director Richard Shields, Building& Safety Director John Harper, City Attorney i Detective Martin, San Bernardino County Sheriffs Department Rick McClintock, San Bernardino County Fire Department ABSENT: None Mayor Stanckiewitz convened the Public Financing Authority,Community Redevelopment Agency and the City Council Meeting at 6:15 p.m. The meeting was opened with an Invocation by Mayor Pro Tern Lee Ann Garcia, followed by the Pledge of Allegiance led by City Attorney John Harper. AUTHORIZATION TO ISSUE REDEVELOPMENT TAX ALLOCATION BONDS A. Actions by Public Financing Authority 1. Resolution of Public Financing Authority Establishing Regular Meeting Dates GTPFA-201 1-01 MOTION BY AUTHORITY MEMBER MCNABOE, SECOND BY AUTHORITY MEMBER HAYS, CARRIED 5-0, to approve a Resolution of the Public Financing Authority Establishing Regular Meeting Dates. 2. Authorization to Issue Redevelopment Tax Allocation Bonds GTPFA-2011-02 MOTION BY AUTHORITY MEMBER SANDOVAL,, SECOND BY AUTHORITY MEMBER MCNABOE, CARRIED 5-0, to Approve a PFA Item No. 1 Community Redevelopment Agency Minutes May 24,2011 Page 2 Resolution Approving the Forms of an Indenture of Trust,Purchase Contract, Continuing Disclosure Agreement and an Official Statement and Authorizing , the Execution of the Purchase Contract Relating to the Issuance of the Community Redevelopment Agency of the City of Grand Terrace's Tax Allocation Bonds Issue of 2011A and Issue of the 2011B for the Community .Redevelopment Project Area and Approving Certain Action.in Connection Therewith. B. Actions of the City Council 1. Approve the Issuance by the Agency of Redevelopment Tax Allocation Bonds CC-2011-40 —MOTION BY COUNCILMEMBER HAYS, SECOND BY COUNCILMEMBER MCNABOE,.CARRIED 5-0,to approve a Resolution Approving the Issuance by the Community Redevelopment Agency of the City of Grand-Terrace of Tax Allocation Bonds,Issue of 2011 A and Issue 2011 B,for the Community Redevelopment Proj ect Area and Making Certain Determination Relating Thereto.and Authorizing Certain , Other Actions in Connection Therewith. C. Actions by Community Redevelopment Agency I. Authorization to Issue Redevelopment Tax Allocation Bonds CRA-2011-31 MOTION BY AGENCY MEMBER MCNABOE, SECOND BY AGENCY MEMBER HAYS,CARRIED 5-0,to approve:a Resolution Authorizing the Issuance ,and_Sale of Tax Allocation Bonds, Issue of 2011A and Issue of 2011B, for the Community Redevelopment Project Area,and Approving the Form of an Indenture of Trust, Official Statement, Purchase Contract, Continuing Disclosure Agreement and- Related Documents and Authorizing Certain Other Actions in Connection Therewith. Mayor Stanckiewitz adjourned the Public Financing Authority Meeting at 6:55 p.m. SECRETARY of the Public Financing Authority of the City of Grand Terrace CHAIRMAN of the Public Financing Authority of the City of Grand Terrace :y y� CALIF0RN,A AGENDA REPORT MEETING DATE: May 24, 2011 Council Item ( X ) CRA.Item ( ) TITLE: Approve San Bernardino Cal-ID Contract PRESENTED BY: Betsy M, Adams, City Manager RECOMMENDATION: ' Approve the contract with the County of San Bernardino for CAL-ID system services authorize the Mayor to execute the agreement. BACKGROUND: The California Identification System (CAL-ID) is the automated system maintained by the Department of Justice for retaining fingerprint files and identifying latent fingerprints. The San Bernardino CAL-.ID Consortium was formed in 1986 .in partnership with the County of 'Riverside under the Penal Code 11-112.1-11112.7. Currently the Riverside/San Bernardino CAL-ID regional system is one of the largest "in the state. Its function is to manage the processing of all fingerprint transactions .generated from county booking 'facilities and- police departments. It is also responsible for the management of the Automated .Fingerprint Identification System (AFIS) used county wide. Grand Terrace joined the .Cal-ID Consortium in May 1986. DISCUSSION: The CAL-ID system provides DNA and AFIS (Automated Fingerprint Identification System) services. This is conducted by the contracted County Sheriffs through latent fingerprint identification, ten print identification .and DNA casework. The cost for service will be billed annually based on .the fees established by the Remote Access Network Board. In San Bernardino County the cost of the service is allocated on the basis of population ($1.0.5 per capita). FISCAL IMPACT: The annual cost incurred for CAL-ID services will be $13,500 and is included in the Fiscal Year 2011712 budget under the account number 10-400-258. COUNCIL AGENDA ITEM NOOD CAL-ID Contract May 24, 2011 Page 2 Respectfully submitted: Stephanih Mercado Intern, City Manager's Office Manager Approval: Betsy A. Ad ms, City Manager ATTACHMENTS: Attachment A: County of San Bernardino Cal-ID Standard Contract CAL-'ID Contract May 24, 2011 Page 3 Attachment A CAL-ID Contract May 24, 2011 FOR COUNTY USE ONLY Page 4 New Vendor Code Dept /� Contract Number Change S�+//+�DI A ❑ Cancel County Department Dept • Orgn. Contractor's License No. SHERIFF'S DEPARTMENT SHR SHR County Department Contract Representative Telephone Total Contract Amount County of San Bernardino GREG GARLAND,CAPTAIN (909)387-0640 $ F A S Contract Type v nue F1 Encumbered M unencumbered n Other. STANDARD CONTRACT If not encumbered or revenue contract type,provide reason: Commodity Code Contract Start Date Contract End Date Original Amount Amendment Amount 7/1/10 6/30/20 $ $ Fund Dept. Organization Appr. Obj/Rev Source GRC/PROJ/JOB No Amount Fund Dept Organization Appr. Obj/Rev Source GRC/PRONJOB No. Amount $ Fund Dept. Organization Appr. Obj/Rev Source GRC/PROJ/JOB No. Amount Project Name Estimated Payment Total by Fiscal Year FY Amount 1/D FY Amount I/D THIS CONTRACT is entered into in the State of California by and between the County of San Bernardino, hereinafter called- the County,and Name City of Grand Terrace hereinafter called CITY Address 22795 Barton Road Grand Terrace, CA 92313 Telephone Federal ID No..or Social Security No. (909)824-6621 IT IS HEREBY AGREED AS FOLLOWS: (Use space below and additional bond sheets. Set forth service to be rendered,amount to be paid,mahnerof payment,time for performance orcompletion, determination of satisfactory performance and cause for termination,other terms and conditions,and attach plans,specifications,and addenda,if any.) WHEREAS, a region composed of the area of the Counties of Riverside and San Bernardino has been formed for implementation and operation of Identification Systems; and WHEREAS, the costs of the Regional System will be allocated to the users within the aforesaid Counties based upon an agreed percentage for the San Bernardino County area and for the Riverside County area; and WHEREAS, there will be costs for implementation and operation, and maintenance of a local subsystem within San Bernardino County(hereinafter referred to as COUNTY); and WHEREAS, in accordance with California Penal Code Section 11112.4, a local Remote Access Network (RAN) Board has been established for the area of San Bernardino County comprised of the following members.A member of the Board of Supervisors, the Sheriff, the District Attorney, the Chief of Police of the CAL-ID Member AuditorlController-Recorder Use Only II Contract Database 13 FAS Input Date Keyed By Page 1 of 6 is CAL-ID Contract May 24, 2011 Page 5 City having the largest number of sworn personnel, a Chief of Police selected by all other police chiefs within the County, a mayor selected by the City selection committee established pursuant to Government Code Section 50270 and a member-at-large chosen by the other members; and WHEREAS,the County of San Bernardino and CITY desire to enter into an agreement for the implementation and operation of all Biometric Identification Systems and DNA Services for the benefits of the citizens of their jurisdictions; NOW, THEREFORE, in consideration of the mutual covenants and conditions herein, the parties hereto agree as follows: I. SCOPE OF WORK A. CITY agrees to be users of the Identification Systems and DNA Services established for the areas of San Bernardino and Riverside Counties. CITY's use of the system under this agreement shall be through the local subsystems for the San Bernardino County area. B. The Regional RAN Board shall approve procedures and policies for operation and use of the Regional Identification Systems. The local RAN Board shall approve such for the local subsystems for the San Bernardino County area. The Sheriff of the COUNTY shall be responsible for managing and operating the local subsystems within the COUNTY consistent with directions of the local RAN Board. All such procedures and policies shall be consistent with the technical requirements of the Regional Systems. C. The Sheriffs Department shall invoice and the CITY agrees to pay annual fees charged for participation in these Identification Systems based upon a per capita fee established by the RAN Board and multiplied by the most recent State of California Department of Finance Population Estimates. D. CITY shall pay to the Sheriffs Department of COUNTY within thirty (30) days of entering into this agreement its fees assessed under this agreement. CITY shall pay its annual fee by August 1t or fifteen (15) days after approval of CITY's budget, whichever is later. Payments under this agreement shall be placed in an interest bearing trust account and the interest earned on such funds shall be applied for expenses of the Identification Systems. Any revenue generated in excess of expenses will be retained to fund equipment replacement, upgrade and expansion, and personnel costs. E. Any amendments to this agreement shall be in writing and approved by the parties before becoming effective. II. TERM AND TERMINATION A. The term of this agreement shall commence upon execution by both parties and shall continue through June 30, 2020. Either party may terminate this agreement by giving notice of termination to the other party on or before July 1 of any year to terminate this agreement as of the subsequent July 1. Any nonmember-party that would like to utilize the Identification System must notify and be approved by the local RAN Board before July 1 of any year to enter this agreement as of the subsequent July 1. III. NOTICES A. All notices required to be given under this agreement shall be delivered to the other parties by registered or certified mail, postage prepaid to the City Clerk or San Bernardino County Sheriff as applicable. The addresses of the parties hereto, until further notice, are as follows: Revised 1/13/2009 Page 2 of 6 CAL-ID Contract May 24, 201.1- Page 6 CONTRACTOR: City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 COUNTY: San Bernardino County Sheriff's Department Bureau of Administration/Contracts Unit P.O: Box 569 San Bernardino, CA 92402-0569 IV. GENERAL TERMS AND CONDITIONS A. Following approval of the budget for the local subsystems for the San Bernardino County area, COUNTY's Sheriff shall fiscally manage the funds and expenditures of the Identification. Systems and establish a separately identifiable account for fees assessed pursuant to the terms of this agreement. B. Any user of the systems which is allowed to enter into program participation may be required to pay its fair share of the start-up, implementation, and equipment costs prior to participation in the Systems. Any such new users may be subject to additional assessments as recommended by the local RAN Board. C. Each user of the Identification Systems within the San Bernardino County area shall be required to be a party to an agreement with the COUNTY setting forth obligations and responsibilities of users so that all such users are treated consistently and fees are charged to all users based on their percentage of the population of all users within the San Bernardino County area of the Regional Systems. D: Any disputes over charges under this agreement will be resolved by the local RAN Board for the San Bernardino County area consistent with the terms of this agreement. E. Use of ARRA Funds and Requirements This Contract may be funded in whole or in part with funds provided by the American Recovery and Reinvestment Act of 2009 ("ARRA"), signed into law on February 17, 2009. Section 1605 of ARRA prohibits the use of recovery funds for a project for the construction, alteration, maintenance or repair of a public building or public work (both as defined in 2 CFR 176.140) unless all of the iron, steel and manufactured goods (as defined in 2 CFR 176.140) used in the project are produced in the United States. A waiver is available under three limited circumstances: (i) Iron, steel or relevant manufactured goods are not produced in the United States in sufficient and reasonable.quantities and of a satisfactory quality; (ii) Inclusion of iron, steel or manufactured goods produced in the United States will increase the cost of the overall project by more than 25 percent; or (iii)Applying the domestic preference would be inconsistent,with the public interest. This is referred to as the "Buy American" requirement. Request for a waiver must be made to the County for an appropriate determination. Section 1606 of ARRA requires that laborers and mechanics employed by contractors and subcontractors on projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to ARRA shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of, Labor in accordance with the Davis-Bacon Act (40 U.S.C. 31). This is referred to as the. "wage rate" requirement. Revised 1/13/2009 Page 3 of 6 CAL-ID Contract May 24, 2011 Page 7 The above described provisions constitute notice under ARRA of the Buy American and wage rate requirements. Contractor must contact the County contact if it has any questions regarding the applicability or implementation of the ARRA Buy American and wage rate requirements. Contractor will also be required to provide detailed information regarding compliance with the Buy American requirements, expenditure of funds and wages paid to employees so that the County may fulfill any reporting requirements it has under ARRA. The information may be required as frequently as monthly or quarterly. Contractor agrees to fully cooperate in providing information or documents as requested by the County pursuant to this provision. Failure to do so will be deemed a default and may result in the withholding of payments and termination of this Contract. Contractor may also be required to register in the Central Contractor Registration (CCR) database at hfp://www.ccr.gov and may be required to have its subcontractors also register in the same database. Contractor must contact the County with any questions regarding' registration requirements. Schedule of Expenditure of Federal Awards In addition to the requirements described in "Use of ARRA Funds and Requirements," proper accounting and reporting of ARRA expenditures in single audits is required. Contractor agrees to separately identify the expenditures for each grant award funded under ARRA on the Schedule of Expenditures of Federal Awards (SEFA) and the Data Collection Form (SF-SAC) required by the Office of Management and Budget Circular A-133, "Audits of States, Local Governments, and Nonprofit Organizations." This identification on the SEFA and SF-SAC shall include the Federal award number, the Catalog of Federal Domestic Assistance(CFDA) number, and amount such that separate accountability and disclosure is provided for ARRA funds by Federal award number consistent with the recipient reports required by ARRA Section 1512 (c). In addition, Contractor agrees to separately identify to each subcontractor and document at the time of sub-contract and at the time of disbursement of funds, the Federal award number, any special CFDA number assigned for ARRA purposes, and amount of ARRA funds. Contractor may be required to provide detailed information regarding expenditures so that the County may fulfill any reporting requirements under ARRA described in this section. The information may be required as frequently as monthly or quarterly. Contractor agrees to fully cooperate in providing information or documents as requested by the County pursuant to this provision. Failure to do so will be deemed a default and may result in the withholding of payments and termination of this Contract V. INDEMNIFICATION AND INSURANCE REQUIREMENTS A. INDEMNIFICATION. CITY agrees to indemnify and hold harmless SAN BERNARDINO COUNTY, its officers, employees, agents, and volunteers from any and all liabilities for injury to persons and damage to property arising out of any negligent act or omission of CITY in connection with this agreement. The SAN BERNARDINO COUNTY agrees to indemnify and hold harmless CITY, from any and all liabilities for injury to persons and damage to property arising out of any negligent act or omission of SAN BERNARDINO COUNTY, its officers, employees, agents, and volunteers in connection with this agreement. In the event that SAN BERNARDINO COUNTY and/or CITY is found to be comparatively at fault for any claim, action, loss or damage which results from their respective obligations under the contract, Revised 1/13/2009 Page 4 of 6 r 1 T CAL-ID Contract May 24, 2011 Page 8 SAN BERNARDINO COUNTY and/or CITY shall indemnify the other to the extent of its comparative fault. B. INSURANCE. Both CITY and San Bernardino Counties are self-insured public entities for purposes of professional liability, general liability, and Workers' Compensation. CITY and San Bernardino Counties warrants that through its program of self-insurance, it has adequate professional liability, general liability and Workers' Compensation to provide coverage for liabilities arising out of CITY and San Bernardino Counties performance of this agreement. VI. FULL UNDERSTANDING A. This contract represents the full and complete understanding of the parties with respect to the subject matter hereto; this contract supersedes Contract Number 90-1318 and all prior oral and written agreements or understanding between the parties with respect to the subject matter hereto. This contract shall be governed by the laws of the State of California. Venue for any lawsuit pertaining to this contract shall be Superior Court of California, County of San Bernardino, San Bernardino Division. Any amendment to this contract shall be in writing signed by both parties. .Revised 1/13/2009 Page 6 of 6 � w.7 CAL-ID Contract May 24, 2011 Page 9 COUNTY OF SAN BERNARDINO - (Printortype name of corporation,company,contractor,eta) ► By. 1101- Josie Gonzales, Chair, Board of Supervisors (Authorized signature-sign in blue ink) Dated: Name (Print or type name of person signing contract) SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE Title CHAIRMAN OF THE BOARD (Print or Type) Laura H.Welch Dated: Clerk of the Board of Supervisors of the County of San Bemardino By Address Deputy Approved as to Legal Form Reviewed by Contract Compliance Presented to BOS for Signature ► ► ► County Counsel,Steven Singley,Deputy Department Head Date Date Date Revised 1/1WON Page 6 of 6 CA6IEORN.IA AGENDA REPORT , MEETING DATE: May 24, 2011 Council.Item ( X ) CRA Item ( ) TITLE: Presentation of the General Fund Financial Sustainability Model PRESENTED BY: Betsy M .Adams, City Manager .RECOMMENDATION: Receive . presentation on the General Fund Financial SustainE bility Model and discuss implications for Fiscal Year 2011-12 operating budget. BACKGROUND: On,April 12, 2011,,, as a .result of thg Governor's proposed elimination of redevelopment agencies, the City and Agency retained the services of Rosenow Spevacek Group, Inc. (RSG.) to-prepare a General Fund Financial Sustainability Model which includes a forecast of revenues and expenditures. The focus of the 20-year forecast is the City's ability to meet ongoing General Fund operational costs, coupled with-the potential loss of economic development tools if edevelopment agencies are eliminated. RSG has completed the model and will present this forecast to the City. DISCUSSION: RSG's forecast for the first. year, .Fiscal' Year (FY) 2011-12, is consistent with the proposed operating budget proj .ction of a General Fund revenue shortfall of approximately '10 percent (roughli $500,000). The forecast for subsequent years worsens and for this reason the Ceneral Fund Financial Sustainability Model, is being presented in advance of the proposed operating budget for FY 2011-12,_ which will presented at the June 14 Council Meeting. RSG projects that the General Fund revenue shortfall will grow, and significantly over time, for the following reasons: 1. General Fund has a structural deficit, meaning that General Fund expenses exceed revenues each and every year. 2. General Fund: expenditures are projected to grow at a higher rate than revenues. The cost of contract law enforcement services is the specific- challenge as it represents the single largest General Fund expenditure with annual costs projected COUNCIL AGENDA'ITEM NO..B,A GF Financial Sustainability Model Page 2 to grow by 6 percent compared to General Fund revenues estimated to grow 2 to 3 percent annually. 3. General Fund structural: deficit will grow larger each year. In FY 2015-16, the City could face a fiscal crisis once all cash reserves are depleted and the annual General Fund deficit exceeds $1 million, unless changes are made. 4. Governor's proposal to eliminate redevelopment, if it comes to fruition, would compound the fiscal challenges of the General Fund in two ways. Several positions are partially funded by the Agency in order to implement redevelopment projects. Without redevelopment,. the General Fund would have to assume some of these salary expenditures. Further, some activities funded by the Agency could not be maintained by the General Fund, such as road improvement projects. The history of Grand Terrace's incorporation on the City's website indicates that a County Supervisor, .at the time, voiced concern on whether the community would have a sufficient tax base to support services. Less than a year after the City incorporated, it established a redevelopment agency and ultimately expanded the project area to encompass the entire City limits. While the Agency brings in more than 2 Y2 times the amount of property taxes into Grand Terrace than what the City would otherwise collect, the fact that the City-has relied on redevelopment funds to assist in the operation of the City (now amounting to one-fifth of the total General Fund) indicates that the City's structural deficit problems have been evident for decades but masked by the use of redevelopment funds to cover the shortfalls that have been present. The City provides a,number of services for the community which are discretionary and which the General Fund is no longer able to fiscally sustain. The cost of mandatory. services provided by the General Fund amount to approximately $3.0 'million today, with contract law enforcement services comprising- approximately 70 percent of the cost. Discretionary costs include items such as community events, non-patrol law enforcement, and many other services and programs. Expenditure reductions alone will not solve the General Fund's long-term fiscal challenges. At some point in the future, service levels could be reduced so low that they could be below what unincorporated communities receive from the County. The City needs to examine now how .to generate additional revenues, especially once -redevelopment ends (either naturally as planned in. 2034, or as soon as this year if eliminated by the Governor). Grand Terrace's fiscal challenges are similar to those faced by many cities in California. Fortunately, the City's small staff size does not create the pension challenges discussed in the press, nor is the City saddled with insurmountable debts that have caused some cities to consider vacating new city halls to reduce costs. Instead, Grand Terrace is a city which has tried for decades to be a full-service city, providing a number of discretionary programs and services despite the fact it does :not have sufficient revenues to support these, even with redevelopment. The Council needs to begin addressing these fiscal challenges through a comprehensive effort involving budget F R GF Financial Sustainability Model, Page 3 reductions, organizational realignment, to ensure efficient, and effective delivery of services the City continues to provide, and revenue enhancements through economic development and potentially a tax measure, or the City may be headed .towards 'insolvency. FISCAL IMPACT: The proposed FY 2011-12 operating budget will be presented to Council on June 14. It will include recommendations to avoid ,a General Fund deficit in the upcoming fiscal year including significant reductions in discretionary services and service levels in general. Reductions alone may not be sufficient to address the totality of the growing General Fund in subsequent years. As a result, the Council may need to consider reducing- discretionary services further. The cost to prepare the General. Fund Financial Sustainability Model was $25,000 which was appropriated on April 12, 2011 from the CRA Debt Service Fund (33) to account number 33-140-250. Respectfully submitted, Betsy . Ad. ms City Manager ATTACHMENTS: None. Copies of the PowerPoint presentation on the General Fund Financial S.ustainability Model will be available at the June 14 Council Meeting and will be posted on the City's website on June 15. Greater Picture i, Governor's budget proposal eliminates all redevelopment agencies ► Redevelopment under scrutiny at state and local levels and by media Other possible budget adjustments City of Grand Terracd Loss of COPS revenue Fiscal Sustainability Model Loss of booking fees M-21.2011 Cil Council Fleeting Jon Simon&Ale—Smi"],,RSG ORSG > Gard T­A-1 Smnio hl Model 512412011 Budget Issues Around State City and Agency > Sweeping budget cuts across state i, City of Grand Terrace ► Hundreds of employees laid off 3 Incorporated 1978 > Difficult labor union negotiations ► Redevelopment Project Area > Employee benefit rates continue to increase(PERS, 1, Adopted 1979 Medical Insurance,etc.) > In 2010-11 Agency expended$1,163,000 for cost allocation expenses,and staff salaries and benefits > Grand Terrace must planfor life without redevelopment ....... --- --- G,nd T­As l Smalmifty Mod,[ S124/2011 ► Gard Te­A-1 Soso-tlay Modd S2412011 How Does City spend its money today? But...City has a structural deficit... ___ GRANDtERRACE EXPENDITURES 201142 Budget Etinn.t., BY DEPARTMENT $5,074,457 I 00.0% aTr n— 4,526.016 89.2% MANAGER D MOF CLERK H—E. (including Net lqhlld Cam Revenue) 1430 INFORMATION - LAW E.F.RC ENT -0*o._NNING --c 13 OTHER 1110 OEPARTMENTs U TOTA G $..T Nnnnn .which may widen Each year as Expenditures are inflating faster than revenues ► Gard T—ne Final SRsaNaWlrcr Model Sa 12011 > (;,,WT­F,,MS,,u&oNbr/Model 5E12011 General Fund Cumulative,Deficit Cities have several types of services MAN TORY 2.1 $0 ($5.000,000) (i1o.000,000) ($15.000.000) ($20,000.000). ($25,000,000) .($30,000.000) (ps'OD0,600) City is headed towards OTHER insolvency,evenvt�($0.000.600)• Redevelopment ($45.006.000) Services) _N --------- ---- G—d T­Api S.—im14 Mudd M42011 G.M T!­Fi—t S.—Niky H.&I 512412011 Grand Terrace enjoys some higher service But,Grand.Terrace cannot meet all service costs ..levels. with$4.5M in.revenues --- - ----------- ------- .... Mandatory Non-essential' I Finance What Else ME And Police Terrace I A M rd $,,,Mor, Community DevelopmentFl I'll 112 $55 S MlExpe e Public Works G.MT—.M­1S.-i-bV4M.&1 5124/2011 Mdd 5r2412011 Prioritization based on what services are So, the goal is to prioritize... Most valuable, not necessarily most popular ;I&RY vv I OTHER GRANbTERRACE IDENTITY Fiscal I Strategic Grand Terrace R=1S­b(11rfMudd St2412011 P GnM T­PiuW S-mimMiq Model S12412011 Let strategic identity dictate decisions Solutions-short and long term Service - - -- Grow Restructure Cuts Revenues Idenury ® ® I - ► GnM Terrace Fual Sustanubiirty Modd M412ol I ® Gr M Te,,rn Rsal S--bdity Model 524/2011 Annual Shortfalls At Current Funding Levels Main challenges dory tib ► Structural(not one-time)deficit So 0'S o''o ► Expenditures growing faster than revenues(problems will ti ti P g g $o - get worse) ($z000,000)+ — ---- - ► Redevelopment loss will be catastrophic _ ► Cash reserves lack structure and in jeopardy ► Traditional reserve and replacement funds do not exist ($6,000,000) - — -- , ($8,000,000)- -- -- - ($10.000,000) - ($12.000,000) General Fund As Is General Fund No CRA Support ._ .-.-._._.--- _. -. _. ._. ► Grs W Ta 1s I S n.1nsblliry Model Sf24201 I ► Gn A Te .Rsml Sustiwbdlny Modd 524201 I •• Needed budget reductions through 2016 $2.500 - 9 i C Cash Flow Reserve(>I0%) _ _ - $500,000 e Emergency Reserve(>25%) 1,200.000 1i- --- c --- - ---- ---` R_DA Lo $1.500 ss Reserve(12 mos.transition) _ _ 1,200,0o0 - Facilities&Equipment Replacement($22k/yr) 50.000 �° .- _..__._.__._.__ $1,000 .. _ _.. 0 - - SubtoEal_ _ _ _ $3.0 Million Cash&Cell Phone Tower Proceeds $3.6 Million $5G0 i c Q $0 - 2011-12 2012.13 2013.14 2014-15 2015-16 ■General Fund Annual Shortfall m Additional Shortfall From Loss of CRA ► GnM Te .Rare1 S suu.W ny Model 5242011 ss � • I Minimized Services Impacts Possible areas of service reduction a ti tib ; I, Reductions in:Sheriff contract ti ^i K 14 Id N d ti ro ti ti ti ,� 4 ,o N'N ry ro"' ► Eliminating programs and services $1.000.000 ------ — --• --------- --- ► Reducing programs and services $0 I ► Salary freezes ($1.000.000) T1`'=�Y1 ► Staff reductions ($3.000.000) ($6.000,000) General Fund As Is i-1 Geneni Fund No CRA Support GnM Temoa Faal S 1.blllry Modd 5242011 ► Grand Tciram Rua]S Inabdlq Mudd 52412011 Next Steps - -- --- ---- --- ---- ► Adopt Balanced 201 1-12 Budget in June ► Longer-Term actions .r Develop a strategic plan with community i Restructure organization with reduced services Importance of economic development Questions and Comments r Viability of tax increase ► C,M Tcrncc F I Susm1b b111q Model 512412011 CA'LIIFORNIA AGENDA REPORT MEETING DATE: May 24, 2011 Council Item (X) CRA Item ( ) TITLE: Approval of Sewer User Billing System Review and Potential Ordinance Revisions. PRESENTED BY: Richard Shields, Director of Building and Safety/Public Works RECOMMENDATION: 1. Approve the attached Professional Service Agreement between the City and Black &Veatch Management Consulting. 2. Approve appropriation of$31,920 from the available equity in the Wastewater Disposal Fund (21) to Professional Services, Account No. 21-175-255. BACKGROUND: On or about September 26, 1980 the City entered into a Settlement Agreement and an amendment to the original Service Agreement with the City of Colton granting the City the right to deliver 1.6 million gallons per day (MGD) of wastewater through the sanitary sewer system to Colton's treatment plant. The City is responsible for maintenance, upgrades and any new regulations mandated by the Federal and State laws relating to the sanitary sewer system. The City has four (4) main sanitary wastewater connections to Colton's wastewater lines that transfer flows to Colton's treatment plant. On February 26, 2004 City Council approved Ordinance No. 209, establishing the latest sewer user charges for all building types. DISCUSSION: Over the years new and infill development has increased the wastewater flows to Colton's treatment plant. In a recent study performed by the City, wastewater was monitored for one week to determine flow's to Colton's treatment plant. The average daily flow is approximately 1.54 MGD and a weekend flow of approximately 1.52 MGD. With future development on the horizon, the City needs to negotiate additional capacity in Colton's treatment plant. COUNCIL AGENDA ITEM NO. ��j Similar to other small sewer agencies, the City is a collection only system with treatment performed by the City of Colton. The City of Colton has contacted Staff regarding our maximum wastewater flows to the treatment plant and the possibility of a future rate increase. On March 24, 2011 a Request for Proposal (RFP) was advertised and titled, "Sewer User Billing System Review and Ordinance Revision" On April 28, 2011 there were three (3) RFP's submitted for review. On May 10th and 11th, Staff conducted interviews with the firms. The interview panel was made up of two City Staff and a consultant who currently manages the City of Colton Treatment Plant, G and G Environmental. The RFP requested research in the following areas of the City's Wastewater facility. 1. Review the City's existing sewer user billing models and develop recommendations for the functional costs components. 2. Review the City's historic revenues and expenses for major discrepancies and perform a detailed review of the collection and treatment charges for the City. 3. Present revisions to the City's Municipal Code Chapter 4 and 13 based on the City of Colton's adopted Wastewater Collection and Treatment System Ordinance. 4. Coordinate with City Staff any proposed sewer user rate increase consistent with Prop 218 and Prop 26. 5. Act as the City's project manager providing administrative and technical support on requested sewer collection and treatment studies and activities. Wastewater is a specialized field that needs expert analysis. The City wastewater system must be studied to determine future maintenance needs, capital improvement needs and depreciation of the system. The cost of wastewater treatment must be reviewed to determine if charges to the City are reasonable and in line with current rate practices. The City received three (3) RFP's from: • Raftelis Financial Consultant, Incorporated, $40,338 • Black &Veatch Management Consulting, $31,920 • Lynn Merrill, Consulting to Municipal Governments, $12,500 After careful consideration, the review panel chose Black & Veatch Management Consulting because of its extensive experience and knowledge of municipal utility operations, specifically water and wastewater rate structuring and its experience with treatment plant operations. The low bid from Lynn Merrill, who is currently providing consulting services for the City on its energy grant, was not chosen. The panel determined that his proposal lacked the specialized expertise in treatment plant operations and the wastewater treatment process needed by the City. Raftelis Financial Consultant was very knowledgeable, however the costs for the service was higher than Black &Veatch who will provide the same service. FISCAL IMPACT: The Wastewater Disposal Fund (21) currently has projected equity of approximately $1,563,600 through fiscal year 2010-11. An appropriation of $31,920 would be made from the available equity in the Wastewater Disposal Fund (21) and would increase the budget in Professional Services account 21-175-255. Respectfully submitted, 6.,,'1�.A""IC;efflmlofzz R' hard Shields, Director of Building and Safety/Public Works Manager Approval: . , Betsy/Adanis City Manager ATTACHMENTS: Professional Service Contract Black_&Veatch_RFP BLACK&VEATCH JOHN R. KERSTEN . Building a world of difference.- Vice President,Black&Veatch Management Consulting 201 SOUTH ORANGE AVE.SUITE 500,ORLANDO,FL 32801 +1407-408-1885 1 KERSTENJR@BV.com April 28,2011 Mr.Richard Shields,Director of Public Works City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 RE: Sewer User Billing System Review and Ordinance Revision Dear Mr.Shields: Black&Veatch Corporation (Black&Veatch) is pleased to submit our Proposal in response to the City of Grand Terrace(City) Sewer User Billing System Review and Ordinance Revision (RFP).We are excited about this opportunity to provide professional services to the City. Black&Veatch is the right choice for this study because of our extensive experience and knowledge of municipal utility operations,finances,and ratemaking. Specifically, our deep qualifications and experience provide the following benefits: Black&Veatch has helped to establish the standard of professional care in the fields of utility rate,financial,and regulatory consulting services.Representatives of Black&Veatch were involved in the preparation of the first edition of the Water Environment Federation MOP 27- Financing and Charges for Wastewater Systems and have had direct involvement in the writing and editing of the subsequent editions. Deep understanding of the state and federal regulations affecting rates.Our professionals have a deep understanding of the state and federal regulations affecting rates and charges.Specifically in California,government regulations such as Proposition 218 and 26 as well as Government Code§54999,Black&Veatch brings specific understanding of all key issues to the City. Development of Sewer Financial Models.Black&Veatch has developed financial planning models for numerous sewer utilities which are advanced and interactive strategic planning tools and provide users with the ability to perform specific simulation analysis,scenario analysis,and performance management analysis. Black&Veatch submits our Proposal not simply as an expression of interest,but as a statement of commitment to provide the leadership and resources necessary for the success of this study. If you have any questions regarding our submittal,please do not hesitate to contact me at(407) 408-1885 or Ms.Ann Bui at(949) 302-6017.We appreciate your consideration of our proposal and welcome the opportunity to assist City. Very truly yours, BLACK &VEATCH CO/RP�ORATION John R.Kersten Vice President,Black&Veatch Management Consulting City mf Grand Terrace,CAI SLvYLn1'4"1.R0LUNIC�|vITEk4RLV/[;V4,NDOPD/NA NO- KE.v|gOw ���K �� �� ���� o °���n�� «�x *~�"���~~.��s Introduction.....................................................................................................................1 ProjectApproach~~....~.....~....~..~....~...~...,.,~.~.-....~.........-......2 Methodology---------------'-'-_---------------------.3 Scopeof Services......................................................................................................................3 ProjectTeam....................................................................................................................6 Team Background''_._'_--------------_---.---'--''---'---6 Project References...................................................................................................................8 Budgetand Schedule.....................................................................................................9 Budget...........................................................................................................................................' | Schedule....................................................................................................................................1O Appendices..^~..^......~..~........~.. ^..^^'.^..`'11 Exhibit1 -Resumes.............................................................................................................11 Exhibit -Wutnr /Wastewater Experience Matrix.---------------.58 Exhibit 3 -Firm Background............................................................................................74 Exhibit 4-Exceptions to Contract Provisions..........................................................76 City of Grand Terrace,CAI SEWER USER BtLLINIG SYSTIFM Rd"VI L VIAND ORD I NIAS"ICE RE'%.'Is iON Introduction The City of Grand Terrace(City)wishes to obtain a qualified consultant to conduct a review of the City's sewer user billing system and related ordinances.The study will entail a detail review of the existing functional costs components within the sewer user billing model and a review of the revenue and expenses for sewer.The intent of the study is to independently assess and provide recommendations to City that will meet the study objectives.The major objectives identified include: Review the City's existing sewer user billing models and develop. recommendations for the functional costs components. Review the City's historical revenues and expenses for major discrepancies and perform a detailed review of the collection and treatment charges for the City. Review the City's strength charges applied to commercial and industrial customers. Present revision to the City's Municipal Code Chapter 4 and 13 based on the City of Colton's adopted Wastewater Collection and Treatment System Ordinance. Coordinate with City staff and City's solid waste franchise provider any proposed sewer user rate increase consistent with Prop 218 and Prop 26. Act as the City's project manager providing administrative and technical support on requested sewer collection and treatment studies and activities. Similar to other small sewer agencies,the City is a collection only system with treatment performed by the City of Colton.As a result,the City is subject to the City of Colton rate and charge increases,which must be pass-through to the City customers.Based on the current rate structure,the City charges a flat rate to its residential customers and a uniform usage rate based on water used to its commercial and industrial customers.The commercial and industrial rate is based on sewer strength characteristics. In addition,the City outsources its customer billing operations to Burrtec Waste Industries for residential users and Riverside Highland Water District for commercial users. SLACK&VEATCH CORPORAT.IONI I h-arodud,km City of Grand Terrace,CAI EVER USER 11.1111 N!G Si IJ FNA R11-V I L'V1,1 NID 0 R'DiNANCL REV Is;0 N[ Project Approach METHODOLOGY Black&Veatch bases its methodology on the fundamental principle of first understanding the needs and priorities,recognizing the evolving nature of the sewer utility,and then developing a holistic,yet flexible solution aligned with meeting the City's defined needs and stated objectives. The key components of the methodology consist of the following: Basis of Billing.The basis of billing will take into consideration the functional aspects of sewer system operations and cost components such as volume and strength.The analysis will evaluate the existing functional costs components and recommend adjustments relative to the load placed on the system by the different user classes. Financial Plan.Rates and charges should generate adequate revenues to meet the operating and capital costs.The assessment will be conducted by taking into consideration different assumptions related to growth, revenue,and expenses. The methodology depicts the process at a high level in Figure 1. Figure I-Proposed Project Approach Required Optional Review—Existing e. —J We firmly believe that value is created in these engagements through detailed analysis.The following scope of work presents the details the methodology and specific tasks that Black&Veatch will utilize during the process.We believe that our proposed scope of work is consistent with the goals and objectives of the project. SCOPE OF SERVICES Task 1— Project Orientation Workshop The objective of this task will be to provide an opportunity for Black&Veatch and City to establish lines of communication and review study goals and objectives.Specific subtasks are: BLACK&VIATCH,110RPORP-110N' 1 F;oi City of Grand Terrace,CAI SEWER USLR BU_I NG SY";111-1\11 FZEVIPI(v 4N'D IURDIINAINICT RLVOGINI 1.1 Discuss the overall approach and strategies,general project coordination,identification of project committee; define targets and deliverables,and administrative activities that will arise during the course of the study. 1.2 Collect and discuss preliminary financial,operational,and other pertinent information during the kick-off meeting with City staff.A preliminary list of data which may be required for the study includes: Summary of revenue data.Data will include rate schedules,basis for billings,revenue data,and usage and strength records for all customer classes for the most recent three years. Summary of expense data.Data will include known or projected O&M expenses,routine capital outlay,major capital improvement projects,debt service,transfers and administrative. Past three years of audited comprehensive annual financial statements. Existing sewer user billing model Existing best management practices in the City 1.3 Review of the City's Municipal Code (Chapter 4 and 13) and other related studies and reports as necessary. Task 2— Functional Costs Components The objective of this task is to review the functional costs components .-.associated with the sewer user billing model.The functional costs components represent the basis for assigning costs to the customer classes. Completion of the following subtasks will achieve this objective: 2.1 Review the existing functional costs components used in the sewer user model to assign costs. 2.2 Sewer treatment plant flow and strength loadings will be obtained for up to five fiscal years.This information will be adjusted to reflect only discharge from the City. 2.3 Sewer strength loadings attributed to low,medium and high strength customers,waste haulers and strengths estimated to be attributable to average 1/1 will be subtracted from City plant loadings to back into average domestic strength sewer values. 2.4 Provide recommendation for basis of billing based on analysis of comparable and calculated functional costs components. Task 3 — Revenues and Expenses The objective of this task is to review the historical financial data and evaluate the discrepancies in the financial plan in the sewer user billing model.The financial plan resides in the sewer user billing model and is used to project SLACK&VFATCH C-ORFORAT ION' I Project Appi.,)P(h BM City of Grand Terrace,CAI -I VVL113, USER B I L L;I qC,SYS-1 EMI RLV!EV'A.NID OR'Ul NIAN CIL P!Ad 110N future rate adjustments over a multi-year period. Completion of the following subtasks will achieve this objective: 3.1 Review historical revenues and expenses for the past three fiscal years for any discrepancies between the revenues collected versus the expenses of the sewer system. 3.2 Review the current rate schedule by the City of Colton to the City.The rates for treatment services will be examined by budget line item. Detail evaluation will be performed on other expense categories such as capital improvements,debt service,and others. Tasl(4—Commercial Charges The objective of this task is to review the charges and basis of billing associated with the City's commercial accounts.Completion of the following subtask will achieve this objective: 4.1 Review and update the charges and basis for billing associated with commercial and industrial customers.Commercial and industrial customers are based on pollutant strength loading. Task 5— Revisions to the Municipal Code The objective of this task is to develop and present revisions to the -appropriate section of City's Municipal Code associated with sewer user charges. Completion of the following subtasks will achieve this objective: 5.1 Review City Municipal Code Chapters 4 and 13 regarding sower user charges and provide revisions to sections based on findings. 5.2 Incorporate the City of Colton's adopted new Wastewater Collection and Treatment ordinance into Municipal Code. Task 6— Reports and Presentations The objective of this task is to identify key deliverables to the City.Completion of the following subtasks will achieve this objective: 6.1 Prepare staff report and workshop presentation materials for City Council.Materials will include issues and findings regarding the functional costs components and review of the financial data. Recommendations will be incorporated with respect to basis for billing and rate adjustments. 6.2 Coordinate with customer billing provider and City staff to meet Proposition 218 and Proposition 26 requirements. 6.3 Provide technical support to City staff at City Council meetings related to sewer user billings. Support will include presentations and response to questions by City Council. BLACK 8.V'EA-ICH CORPORAMN ; Projc,ct City of Grand Terrace,CAI SEWER USER B H.U NG SYS 11 NI REA/I EV-1'PND(DR.D1NPN(_E RI-VISION Task 7—Administrative and Technical Support The objective of this task is to augment City staff by providing administrative and technical support for other sewer collection and treatment studies. Completion of the following subtasks will achieve this objective: 7.1 Provide the City staff with a project manager that can assist in leading City staff to perform other sewer collection and treatment studies and activities as requested.Specific requests that exceed the hours outlined in the cost proposal will be discussed prior to performance. 7.2 The project manager will be supplemented by Black&Veatch engineering staff that specializes in wastewater collection and treatment operations. Task 8—CIS Billing System Assessment (Optional) The objective of this task is to provide the City with the option to perform a CIS billing assessment of its current accounts.In performing the assessment, the City can verify that accounts are current and being billed accurately. Completion of the following subtasks will achieve this objective: 8.1 Provide the City with a CIS technical consultant that can assist the City in obtaining billing data from the third party vendor. 8.2 Provide the City with identifying areas of concern such as missing and incorrect customer account information. Black&Veatch has experience in helping utilities implement CIS systems and can provide guidance to the City if this is a desired alternative.Specific subtasks may include the following: Complete review of all customer accounts to verify that customers are correctly classified (e.g.,single family residential,multi-family residential, commercial,industrial,institutional) Verification of customer account information,such as meter sizes and billing frequency Review of bill generation processes,including: Meter reading data entry and adjustments to reads due to leaks or other exceptions Process review of CIS billing Review of customer bill generation and business rules for application of"short-pay"bill amounts BLACK&VEATCH CC)RPORATIDN 1 Projied hlppi,.ah �tyof Grand Tenam�CAI SEVYLR ;S[R�|L LING SYSTikXR[Vi[�/AND O�D|NAN[ER[V0OH �������~ n �Project n Team TEAM BACKGROUNDCITYCIFGRAND Black&Veatch has assembled u highly qualified team of financial and rate consultant professionals for this important study.The team brings extensive industry knowledge combined with proven performance,which isuhallmark feature of all Black&Veatch project teams. Our proposed project team includes experts that will contribute as needed to accomplish athorough utility billing review for the sewer system and revisions to the ordinance. Key Personnel The following information provides a summary of the qualifications, responsibilities,general experience,and time commitment for the managerial and supervisory professionals that will be assigned tn the study. Yrs of Experience— Responsibility Relevant Experience/Informatio ]ohnKersten Vice ' Executive ' Project Director and Principal—|n'[harge for following .30years President/Project commitment for clients all over US—]E/;City of Raleigh;Orlando Director project execution Utilities Commission; City of Columbia,SC;Winston— Time ' Confirming that Salem, NC;Oty.of Garland,TX; City of High Court, NC; Commitment: Location:Orlando, FL appropriate Greenville Utilities Commission, NC;City ofLakeland, As-needed resources are FL;City of Las Cruces, NIVI;City nf Greensboro, NC;City available for of Danville,VA;City nf Anderson,SC;City of project Wilmington, NC / CA Review National Practice Lead for all municipal water and wastewater financial consulting work Keith Barber Phmcipa|Consultant/', 'Provide di io? Project M' 'rfbstudy' ' h the' 35yean TethnicalAdvisor and technical following dients |�d Sewer District L rcLdf� Q�d8nceas Loui�the Cities of.Kansas[i ty, M[;Litt|e Rock,AR ' Time Location:Overland . neuessary� Tulsa,'OK,Topeka; KS;and Batori-RougeJA Commitment: Pad, 0 ' Attend all project for a comprehensive water demand 35% meetings and study for the Illinois American Water Company ' presentations ` Pn�ect��anaQprforBlack veatch's rate and�nonciu| feasibility work for the City of Los Angeles,CA, Bureau . of Sanitation since 19O7 Project Manager for Water Rate Study for Coachella Valley Water District ouxc: conponAnonip,ciectream OEM City af Grand Terrace,CAI S[VV[R USER DiLUN6SYSTEmRLNLVVANDORD|NAN[[REV|S|OH Name/ Relevant Experience/Information Yrs of Experience Responsibility Ann Bui Director/ Responsible for ` 2Z years nf strategic and business planning, utility ZJyeam Project Manager day-to-day mtemokin0,and financial valuation studies for utilities execution of work ^ West Coast Lead for water and wastewater financial Time Location: Irvine,CA plan and planning and rate work Commitment: presentations Project Lead for multi-tiered debt financing sales 2596 " Responsible for totaling over$2billion project budget ` Project Manager for rate and connection fee studies and schedule for the following CA clients following Prop 218 and A8 ' Attend all project l60O requirements:Garden Grove,Antioch, D5R3C\ meetings and CCSD,Chino Hills,San Clemente, Downey, Indio Water presentations Authority,San Juan Capistrano, Long Beach, W1arin MVVD,and Oxnard ` Vice Chair nfAVVVVA Finance,Accounting and Management Controls and Member uf Strategic Management Practices Committees Kenneth _ Director/Senior ��ProyideM ' Business Development,CIS for-Public and Municipal ` . Tomchuk' Advisor O3- 0qida�ceas Vti|ities With 4D years evperi enoethvodghoutthe 40yeam ' . necessary UnitedStates and Canada Time, cummitnent Location:Da TX' 1S% ` Rich ten Engineering Provide '' Lead and ProjectEngineer for projectswith the Bosch P.E. Manager/Senior engineering and following clients:Orange County Sanitation and Water 21yean Advisor'Engineering technical guidance District, Irvine Ranch Water District,City of Rialto,City as necessary. of Tustin,City of San Bernondinu, City ofScottsdale, Time Attend project City nf Carlsbad,Cucamonga Valley Water District, Commitment: Location: Irvine,CA meetings if Chino Hills 15Y6 necessary Alberto- Consultant/ � � R /'ohgb|ehx ' Leadanq|��for�testudypn�e�swiththefoU Morales . ' LeodFhnondo| ` [ev�wofsewer clients:- n�Gamderove � Ca pistrano,trano, 'City of ' � 8yeao ' � � rat�modei ` ,� ` - . '—_n—' _.-- `--_ , ---- �� hds�� ^ ' ~ ' - � ` ` ` ` ~^ Time � _ Lpcaton:Los '`' pnmud�| ^° Lead oonsultantont| Dorado| -Disthctand � Commitment:' Angeles,CA _Attehdpnoject Cityof Henderson Capital Prioritization Study � 6O% Meetings - ^ � City of Grand Terrace,CAI 5LVV[x USER. B|LUN65YSIHk4CEV|EYyXNDOKD|NAN[LREV15ION PROJECT REFERENCES Black 8L Veatch is privileged to serve asa trusted fioaocialadvisor and FINANCIAL FEASIBILITY provider of financial and rate consulting services to numerous municipal water utilities throughout the country.For many of our clients,vvmhave provided service for several years,and in some instances decades.We value long lasting relationships and believe it enables superior customer service and support. COMPUTER � A oozuzuary of our national experience with water/wastewater utilities in the MODEL � areas of financial yl000iog is provided in Exhibit ' 3 and CIS representative experience is provided in Exhibit 3. Following are brief descriptions of � services provided which are similar in nature to those requested byCity. Name of Project/Client— Project Summary References Sewerage Facilities ' Black&Veatch conducted a comprehensive study ofthe Ms. Lisa Mowery Charges/City mfLos [ity's existing sewerage facilities charges(wastewater system Sr.Sanitary Engineer Angeles,Bureau of capital recovery charges)that presented three alternative Bureau ofSanitation Sanitation methodologies that could be used to develop capital Financial Management recovery charges for new or expanded customer service. Division Based nn the findings of this study,the City adopted the 1149S. Broadway, incremental cost-pricing method and implemented a 5uite9O0 schedule of charges effective July l, 1989. Black&Veatch has Los Angeles,[A90O1S provided annual updates for this study since 1990.A1994 Ph.(313)4O5'Z379 report was also prepared 6y Black&Veatch to evaluate and compare the[ity's sewerage facilities charges in relation to those levied by the Los Angeles County Sanitation Districts. |n 1996' Black&Veatch assisted the City with modifying the charges to reflect the system buy-in methodology. Black&Veatch in2U09/1O assisted the City with updating the Sewerage Generation Factors which are the typical flow and wastewater strength characteristics of various facilities and the basis of applying the Sewerage Facilities Charges tonew customers. Water,Wastewater,.and Black '&Veatch-performed aw/atercont.ufsen4ceondrate K4s. W1icheUe]oh`s�n ' 3oUdVVa�enate. ' �.` -study for the ofO vd 65 B Ve6tch ` i hEnvironmental- ^ o�� i dth water consumption cha �e���s d ResoUrdsK�ana8er- `. Water Division _ ~i-nodified to achieve fairand equitable 305 West Thi�dStne�.3vd recovery f _ ocos of classes.various F� � opas VV�0' ' ` � customers. |nadUhior, Black 9k x'---pp�c,hreviewed-the Oty's Oxnard,CA9]O]O 'water capital facility charges for equitable Cost sharing and Ph.(B]S).^ -8309 leQa|d and reviewed the feasibility ofestablishing a water resources development fee or-incorporating such costs into the facility charge. R-equirem6iltsofPnopositiun Z1D and AB16UO were incorporatedinto the recommendation for review and evaluation. Upon completion uf the water rate study,the City retained ' Black&Veatchin2OO7to develop a comprehensive rate its wastewater and environmental resources (solid waste)utilities. � Currently, Black&Ve tch is conductingdetailed analysis of BLACK m vcxrc*coxPonAT/ow 1 p,oiectTmm � � City of Grand Terrace,CAI SEWER USER 8|LL/NGSiSTEK4REV|[YVANDORD|NAN[FREV|3|ON Project Summary References ` ^""""""" classes,=~"' factors and pd| and updatingthe ratempde�hx ' ^ water, and�did��st� ' � ~.~.-_.~' �--- - . � Water and Wastewater ` Black&Veatch performed a water and wastewater cost of Mr. Phil Harrington Rate and Connection Fee service and rate study for the City in2007. Black&Veatch Director ofCapital Study/City Of Antioch, developed rates for both water and wastewater as well as Improvements/Water CA connection fees and assisted the City through the Proposition Rights Z18 process and Government Code§54999 requirements by 3nd&^H"Street providing guidance. Antioch,[A94531 ' |n mid ZUlO'Black&Veatch was rehired to assist the City Ph. (9ZS)779'702S with updating and developing new water conservation rates and automatic pass-through charges. Water, stewater,ond & ' . Ws Cindy Russell Sro - Capistrano to � ct Assistant� y ' ~ Studie$.ChVmf San Juan' ' seni�e study Ca no, '' � Black 8�\/eatch��� ]24OO:pasenAde| nto' � ' �dedchan��stoad Ph. . � ` — 6 | ' ` _'-~—' _ . , ' _-_--`- '� '_�- _'__—_"- _ an_�—_— g-�_' ' s�uc���� r�8b:k9 Veatch ` different- ' ' ncing ~^^'~' and recommended the~"~p"_"' ""� 'guiding" dnd �vthe Thely ' uncil and the public,recen~ I ` ' -passed,a-five-year revenu.,e increase totaling almost88%foe ' the water and � ` ` ' Water Rate Study/Marin ' Black QVeatch was retained by MMWDto perform awater Ms.Oreen Delgado Municipal Water District cost uf service and rate study in2OO9.The District is Interim Finance Manager regional water purveyor that provides water service to o 220 NeUen Avenue population uf over 195,OOO throughout K8ahn County. |thad Corte Madera,CA94925 been the District's procedure to evaluate its meter service Ph.(41S)94S'142S charge and commodity charge on annual basis,but had never performed o cost of service study. 8|ack&Veatch developed a financial model spanning a period of five years that will assist the District with projecting its finances and enable capital project planning scenarios. |n addition to the rate study, Black Q Veatch is working with the District and a Citizen's Rate Committee to explore alternative rate structures and evaluate the impact on customers. Budget� � Schedule � U ������~ ��� ��ox���ne BUDGET Black Oc Veatch proposes to perform the scope of services (Task l'Task 7) presented noa time and materials basis for anot tn exceed amount n[$31'920 inclusive of direct expenses incurred at actual cost.Direct expenses include BLACK mvcArcwconponArmm | Budge,r/.uschro0r City of Grand Terrace,CA I SI-Vk/ER BILLINIG SYSTEM R�EVUA/ANUORDINIANCE RLVJSI(-J�Jj airfare,car rental,mileage,parking,hotels and outside reproduction costs.The matrix below provides a detailed breakdown of the hours and cost by task. PROJECT SENIOR PROJECT TASK DESCRIPTION MANAGER ADVISORS ANALYST • • Task 1. Project Orientation Workshop 4 4 $1,620 Task 2. Functional Cost Component 8 8 24 $7,280 Task 3. Revenue and Expenses 8 20 $4,860 Task 4.Commercial Charge - 4 14 $3,070 Task 5. Revisions to the Municipal Code 4 8 $2,320 Task 6. Reports and Presentations 16 4 19- $7,550 Task 7.Administrative and Technical Support 8 8 8 $4,720 Total Hours- 52 4 16 96 $31,420 Expenses $500 TotalFee Erin= Hourly Rate $230 $255 $215 $145-$185- SCHEDULE The following schedule assumes receipt of Notice to Proceed (NTP) on or before May.15,2011.The timeline shown below reflects a high-level schedule that provides guidelines for the schedule activities.The proposed schedule assumes timely receipt of requested data,timely turn-around on materials submitted for review,and access to City staff for meetings.Black&Veatch understands the time-sensitive nature of City's Study and we have the availability and resources to start this project immediately upon receipt of City's NTP. May Jun Jun July Task Description Week Encling: 0 a 2=a w Laomm Notice to Proceed Task 1. Project Orientation Workshop ■ Task 2. Functional Cost Component Task 3. Revenue and Expenses Task 4. Commercial Charge Task 5. Revisions to the Municipal Code Task 6. Reports and Presentations 13 Task 7. Administrative and Technical Support ♦ Notice to Proceed E3 Draft Report 0 Regular Meeting 39 Final Report SLACK 3 VEATCH CORPORPITION 1 Eudget P-nd F,& PROFESSIONAL SERVICES AGREEMENT Black and Veatch Corporation Sewer user Billing System Review and Ordinance Revision THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into this 20 day of May, 2011, ("Effective Date") by and between the CITY OF GRAND TERRACE ("City"), a public entity, and Black and Veatch Corporation, an Individual or Entity, corporation, ("Professional"), 1. Scope of Services. City agrees to retain and does hereby retain Professional and Professional agrees to provide the services more particularly described in Exhibit"A", "Scope of Services" ("Services"), attached hereto and incorporated herein by reference, in conjunction with Sewer User Billing System Review and Ordinance Revision("Services"). 2. Term. This Agreement shall be effective on the date first written above unless otherwise provided in Exhibit "A" Scope of Services and the Agreement shall remain in effect until December 13, 2011,unless otherwise terminated pursuant to the provisions herein. 3. Compensation/Payment. Professional shall perform the Services under this Agreement for the total sum not to exceed Thirty one thousand nine hundred and twenty dollars ($31,920). Payment shall be made in accordance with City's usual accounting procedures upon receipt and approval of an itemized invoice setting forth the services performed. The invoices shall be delivered to City at the address set forth in Section 4 hereof. In the event City disputes any invoice item, City shall give Professional written notice of such disputed item within 10 days after receipt of such invoice and shall pay to professional the undisputed portion of the invoice according to the provisions hereof. If a City fails to pay any invoiced amounts when due, interest will accrue on each unpaid amount at the rate of twelve percent per annum, or the maximum amount allowed by law if less, from the date due until paid according to the provisions of this Agreement. Interest shall not be charged on any disputed invoice item which is finally resolved in City's favor. Notwithstanding any other provision of this Agreement, Professional is under no obligation to.submit any deliverable if any invoice is more than 45 days outstanding. 4. Notices. Any notices required to be given hereunder shall be in writing and shall be personally served or given by mail. Any notice given by mail shall be deemed given when deposited in the United States Mail, certified and postage prepaid, addressed to the party to be served as follows: To Cfty To Professional City of Grand Ten-ace Black&Veatch Corporation Attn: Richard Shields Attn: Ann Bui 22795 Barton Road. Bldg. B 800 Wilshire Blvd. Suite 600 Grand Terrace, CA.92313 Los Angeles, CA 90017 5. Prevailing Wage. If applicable, Professional and all subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the California Labor Code and implemented the City Council of the City of Grand Terrace. The Director's determination is on file and open to inspection in the office of the City Clerk and is referred to and made a part hereof; the wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein. 6. Contract Administration. A designee of the City will be appointed to administer this Agreement on behalf of City and shall be referred to herein as Contract Administrator. 7. Standard of Performance. While performing the Services, Professional shall exercise the reasonable professional care and skill customarily exercised by reputable members of Professional's profession practicing and performing similar services in the Metropolitan Southern California Area at the time services are performed, and shall use reasonable diligence and best judgment while exercising its professional skill and expertise. 8. Personnel. Professional shall furnish all personnel necessary to perform the Services and shall be responsible for their performance and compensation. Professional recognizes that the qualifications and experience of the personnel to be used are vital to professional and timely completion of the Services. The key personnel listed in Exhibit `B" attached hereto and incorporated herein by this reference and assigned to perform portions of the Services shall remain assigned through completion of the Services, unless otherwise mutually agreed by the parties in writing, or caused by hardship or resignation in which case substitutes shall be subject to City approval which approval shall not be unreasonably withheld. 9. Assignment and Subcontracting. Neither party shall transfer any right, interest, or obligation in or under this Agreement to any other entity without prior written consent of the other party. In any event,no assignment shall be made unless the assignee expressly assumes the obligations of assignor under this Agreement, in writing satisfactory to the parties. Professional shall not subcontract any portion of the work required by this Agreement without prior written approval by the responsible City's Contract Administrator. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including without limitation, the insurance obligations set forth in Section 12. Professional acknowledges that any transfer of rights may require City Manager and/or City Council approval. 10. Independent Contractor. In the performance of this Agreement, Professional, and Professional's employees, subcontractors and agents, shall act in an independent capacity as independent contractors, and not as officers or employees of the City or the City of Grand Terrace. Professional acknowledges and agrees that the City or the City has no obligation to pay or withhold state or federal taxes or to provide workers' compensation or unemployment insurance to Professional, or to Professional's employees, subcontractors and agents. Professional, as an independent contractor, shall be responsible for any and all taxes that apply to Professional as an employer. 2 11. Indemnification. 11.1 Indemnity. Except as to the sole negligence or willful misconduct of the City, Professional shall defend, indemnify and hold the City, and its officers, employees.and agents, harmless from any and all loss, damage, claim for damage, liability, expense or cost, including attorneys' fees, which arises out of or is in any way connected with the performance of work under this Agreement by Professional or any of the Professional's employees, agents or subcontractors and from all claims by Professional's employees, subcontractors and agents for compensation for services rendered to Professional in the performance of this Agreement, notwithstanding that the City may have benefitted from their services. This indemnification provision shall apply to any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of Professional or of Professional's employees, subcontractors or agents. 11.2 Attorney's Fees. The parties expressly agree that any payment, attorneys' fees, costs or expense that the City incurs or makes to or on behalf of an injured employee under the City's self-administered workers' compensation is included as a loss, expense or, cost for the purposes of this Section, and that this Section shall survive the expiration or early termination of the Agreement. 12. Insurance. 12.1 General Provisions. Prior to the City's execution of this Agreement, Professional shall provide satisfactory evidence of, and shall thereafter maintain during the term of this Agreement, such insurance policies and coverages in the types, limits, forms and ratings required herein. The rating and required insurance policies and coverages may be modified in writing by the City's Risk Manager or City Attorney, or a designee, unless such modification is prohibited by law. 12.1.1 Limitations. These minimum amounts of coverage shall not constitute any limitation or cap on Professional's indemnification obligations under Section 1 I hereof. 12.1.2 Ratings. Any insurance policy or coverage provided by Professional or subcontractors as required by this Agreement shall be deemed inadequate and a material breach of this Agreement, unless such policy or coverage is issued by insurance companies authorized to transact insurance business in the State of California with a policy holder's rating of"A" and a Financial Class of VII or higher. 12.1.3 Cancellation. The policies shall not be canceled unless thirty (30) days prior written notification of intended cancellation has been given to City by certified or registered mail,postage prepaid. 12.1.4 Adequacy. The City and the City, its officers, employees and agents make no representation that the types or limits of insurance specified to be carried by Professional pursuant to this Agreement are adequate to protect Professional. If Professional believes that any 3 required insurance coverage is inadequate, Professional will obtain such additional insurance coverage as Professional deems adequate, at Professional's sole expense. J 12.2 Workers' Compensation Insurance: By executing this Agreement, Professional certifies that Professional is aware of and will comply with Section 3700 of the Labor Code of the State of California requiring every employer to be insured against liability for workers' compensation, or to undertake self-insurance before commencing any of the work. Professional shall carry the insurance or provide for self-insurance required by California law to protect said Professional from claims under the Workers' Compensation Act. Prior to City's execution of this Agreement, Professional shall file with City either (1) a certificate of insurance showing that such insurance is in effect, or that Professional is self-imured.for such coverage, or(2)a certified statement that Professional has no employees, and acknowledging that if Professional does employ any person, the necessary certificate of insurance will immediately be filed with City. Any certificate filed with City shall provide that City will be given ten (10) days prior written notice-before modification or cancellation thereof. 12.3 Commercial General Liability and Automobile Insurance. Prior to City's execution of this Agreement, Professional shall obtain, and shall thereafter maintain during the term of this Agreement, commercial general liability insurance and automobile liability insurance as required to insure Professional against damages for personal injury, including accidental death, as well as from claims for property damage, which may arise from or which may concern operations by anyone directly or indirectly employed by, connected with, or acting for or on behalf of Professional. The City, and its officers, employees and agents, shall be named as additional insureds under the Professional's insurance policies but only to the extent of Professional's negligence. 12.3.1 Professional's commercial general liability insurance policy shall cover both bodily injury (including death) and property damage (including, but not limited to, premises operations liability, products-completed operations liability, independent Professional's liability, personal injury liability, and contractual liability)in an amount of$1,000,000 per occurrence and A general aggregate limit in the amount of$2,000,000. 12.3.2 Professional's automobile liability policy shall cover both bodily injury and with property damage in an amount not less than$500,000 per occurrence and a combined single limit of not less than $1,000,000. All of Professional's automobile and/or commercial general liability insurance policies shall cover all vehicles used in connection with Professional's performance of this Agreement,which vehicles shall include,but are not limited to,Professional owned vehicles, and Professional leased vehicles, Professional's employee vehicles, non-Professional owned vehicles and hired vehicles. 12.3.3 Prior to City's execution of this Agreement, copies of insurance policies or original certificates- and additional insured endorsements evidencing the coverage required by this Agreement, for both commercial general and automobile liability insurance, shall be filed with City and shall include the City and the City and its officers, employees and agents, as additional insured's but only to the extent of Professional's negligence. Said policies shall be in the usual 4 form of commercial general and automobile liability insurance policies, but shall include the following provisions: It is agreed that the City of Grand Terrace and its officers, employees and agents, are added as additional insured but only to the extent of Professional's negligence under this policy, solely for work done by and on behalf of the named insured for the City of Grand Terrace. 12.4 Errors and Omissions Insurance. Prior to City's execution of this Agreement, Professional shall obtain, and shall thereafter maintain during the term of this Agreement, errors and omissions professional liability insurance in the minimum amount of $1,000,000 per occurrence and in the aggregate to protect the City from claims resulting from the Professional's activities. 12.5 Subcontractors' Insurance. Professional shall require all of its subcontractors to carry insurance, in an amount sufficient to cover the risk of injury, damage or loss that may be caused by the subcontractors' scope of work and activities provided in furtherance of this Agreement, including, but without limitation, the following coverages: Workers Compensation, Commercial General Liability, Errors and Omissions, and Automobile liability. Upon City's request, Professional shall provide City with satisfactory evidence that Subcontractors have obtained insurance policies and coverages required by this section. 13. Business Tax. Professional understands that the Services performed under this Agreement constitutes doing business in the City of Grand Terrace, and Professional agrees that Professional will register for and pay a business tax pursuant to Chapter 5.04 of the Grand Terrace Municipal Code and keep such tax certificate current during the term of this Agreement. 14. Time of Essence. Time is of the essence for each and every provision of this Agreement. 15. City's Right to Employ Other Professionals. City reserves the.right to employ other Professionals in connection with the Services. 16. Accounting.Records. Professional shall maintain complete and accurate records with respect to costs incurred under this Agreement. All such records shall be clearly identifiable. Upon reasonable notice, Professional shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Professional shall allow inspection of all work, data, documents,proceedings, and activities related,to the Agreement for a period of three (3)years from the date of final payment under this Agreement. 17. Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other materials either created by, or provided to Professional in connection with the performance of this Agreement shall be held confidential by Professional, except as otherwise directed by City's 5 Contract Administrator. Nothing furnished to Professional which is otherwise known to the Professional or is generally known, or has become known, to the related industry shall be deemed confidential. Professional shall not use City's name or insignia, photographs of the Services, or any publicity pertaining to the Services or the Services in any magazine,trade paper, newspaper, television or radio production, website, or other similar medium without the prior written consent of the City. 18. Ownership of Documents. All reports, maps, drawings and other contract deliverables prepared under this Agreement by Professional shall be and remain the property of City upon City's compensation to Professional for its services as herein.provided. Professional shall not release to others information furnished by City without prior express written approval of City. 19. Conflict of Interest. Professional, for itself and on behalf of the individuals listed in Exhibit `B", represents and warrants that by the execution of this Agreement, they have no interest, present or contemplated, in the Services affected by the above-described Services. Professional further warrants that neither Professional, nor the individuals listed in Exhibit `B" have any real property, business interests or income interests that will be affected by this Service or,alternatively,that Professional will file with the City an affidavit disclosing any such interest. 20. Solicitation. Professional warrants that Professional has not employed or retained any person or City to solicit or secure this Agreement, nor has it entered into any agreement or understanding for a commission, percentage, brokerage, or contingent fee to be paid to secure this Agreement. For breach of this warranty, City shall have the right to terminate this Agreement without liability and pay Professional only for the value of work Professional has actually performed, or, in its sole discretion, to deduct from the Agreement price or otherwise recover from Professional the full amount of such commission, percentage, and brokerage or commission fee. The remedies specified in this section shall be in addition to and not in lieu of those remedies otherwise specified in this Agreement. 21. General Compliance with Laws. Professional shall keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Professional,or in any way affect the performance of services by Professional pursuant to this Agreement. Professional shall at all times observe and comply with all such laws,ordinances and regulations, and shall be solely responsible for any failure to comply with all applicable laws, ordinances and regulations. 22. Amendments. This Agreement may be modified or amended only by a written Agreement and/or change order executed by the Professional and City. 23. Termination. City, by notifying Professional in writing, shall have the right to terminate any or all of Professional's services and work covered by this Agreement at any time. In the event of such termination, Professional may submit Professional's final written statement of the amount of Professional's services as of the date of such termination based upon the ratio that the work completed bears to the total work required to make the report complete, subject to 6 the City's rights under Sections 15 and 24 hereof. In ascertaining the work actually rendered through the termination date, City shall consider completed work, work in progress and complete and incomplete reports and other documents only after delivered to City. 23.1 Other than as stated below, City shall give Professional thirty(30) days prior written notice prior to termination. 23.2 City may terminate this Agreement upon fifteen (15) days written notice to Professional,in the event: 23.2.1 Professional substantially fails to perform or materially breaches the Agreement; or 23.2.2 City decides to abandon or postpone the Services. 24. Offsets. Professional acknowledges and agrees that with respect to any business tax or penalties thereon, utility charges, invoiced fee or other debt which Professional owes or may owe to the City, City reserves the right to withhold and offset said amounts from payments or refunds or reimbursements owed by City to Professional. Notice of such withholding and offset shall promptly be given to Professional by City in writing. In the event of a dispute as to the amount owed or whether such amount is owed to the City and/or the City, City will hold such disputed amount until either the appropriate appeal process has been completed or until the dispute has been resolved. 25. Successors and Assigns. This Agreement shall be binding upon City and its successors and assigns, and upon Professional and its permitted successors and assigns, and shall not be assigned by Professional, either in whole or in part, except as otherwise provided in paragraph 9 of this Agreement. 26. Venue and Attorneys' Fees. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of San Bernardino, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. In the event either party hereto shall bring suit to enforce any term of this Agreement or to recover any damages for and on account of the breach of any term or condition of this Agreement, it is mutually agreed that the prevailing party in such action shall recover all costs thereof, including reasonable attorneys' fees, to be set by the court in such action.. 27. Nondiscrimination. During Professional's performance of this Agreement, Professional shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition, including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sex, or sexual orientation, in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 7 12940 of the California Government Code. Further, Professional agrees to conform to the requirements of the Americans with Disabilities Act in the performance of this Agreement. 28. Severability. Each provision,term, condition, covenant and/or restriction, in whole and in part, of this Agreement shall be considered severable. In the event any provision, term, condition, covenant and/or restriction, in whole and/or in part, of this Agreement is declared invalid, unconstitutional, or void for any reason, such provision or part thereof shall be severed from this Agreement and shall not affect any other provision, term, condition, covenant and/or restriction of this Agreement, and the remainder of the Agreement shall continue in full force and effect. 29. Authority: The individuals executing this Agreement and the instruments referenced herein on behalf of Professional each represent and warrant that they have the legal power, right and actual authority to bind Professional to the terms and conditions hereof and thereof. 30. Entire Agreement: This Agreement constitutes the final, complete, and exclusive statement of the terms of the agreement between the parties pertaining to the subject matter of this Agreement, and supersedes all prior and contemporaneous understandings or agreements of the parties. Neither party has been induced to enter into this Agreement by, nor is either party relying.on, any representation or warranty outside those expressly set forth in this Agreement. 31. Interpretation. City and Professional acknowledge and agree that this Agreement is the product of mutual arms-length negotiations and accordingly, the rule of construction, which provides that the ambiguities in a document shall be construed against the drafter of that document, shall have no application to the interpretation and enforcement of this Agreement. 31.1 Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of the Agreement or any of its terms. References to section numbers are to sections in the Agreement unless expressly stated otherwise. 31.2 This Agreement shall be governed by and construed in accordance with the laws of the State of California-in effect at the time of the execution of this Agreement. 31.3 In the event of a conflict between the body of this Agreement and Exhibit "A" ("Scope of Services")hereto,the terms contained in Exhibit"A" shall be controlling. 32. Exhibits. The following exhibits attached hereto are incorporated herein to this Agreement by this reference: Exhibit"A"- "Scope of Services and fees" Exhibit"B"—"Key Personnel" IN WITNESS WHEREOF City and Professional have caused this Agreement to be duly executed the day and year first above written. 8 THE CITY OF GRAND TERRACE, A public body By: Betsy M.Adams City Manager Company Black&Veatch Corporation Attest: Brenda Mesa City Clerk By: APPROVED AS TO FORM: (John R. Kersten) By: (Vice President) City Attorney 9 EXHIBIT "A" SCOPE OF SERVICES The successful Consultant will provide the City with user rate modeling and prepare revisions to Chapters 4.68, 4.72, 13.04 and 13.08 of the City's Municipal Codes relating to sewer user fees and services consistent with established local and state law and guidelines. Under this agreement, the selected Consultant will provide, but not be limited, to the following scope of services: 1. Preparing a review of the City's existing sewer user billing models and develop recommendations for an updated model based on appropriate parameters such as number of drainage fixtures units per customer, or other best management practices as determined between the Consultant, the City of Grand Terrace, Grand Terrace Waste Franchise Hauler, and the City of Colton Wastewater Treatment Facility. The City of Colton provides wastewater treatment for Grand Terrace and Burrtec Waste Industries Inc. provides billings of City residential users. Riverside Highland Water District provides billings for our commercial users. 2. Review sewer collection system revenues and expenses for the fiscal years FY2007-08, FY2008-09, FY2009-10 to identify any discrepancies between the revenues collected from sewer users versus the expenses of the system, and determine and document any shortfalls. Consult with the City of Colton Waste Water Treatment Facility to determine current rates that should be charged for treatment in the City of Grand Terrace. Said review shall consist of all line items and expenses relating to the sewer collection and treatment system, including salaries and benefits, operation and maintenance, depreciation, current and future capital expenses as available, and any proposed sewer collection or treatment system master plans for expansion. 3. Provide a separate cost estimate for the review of city's existing commercial accounts. A low, medium, and high strength rate shall apply to all commercial/industrial users based upon usage. 4. Develop and present revisions to appropriate sections of the City's Municipal Code, including but not limited to the following sections: The City of Colton has adopted a new Wastewater Collection and Treatment System ordinance that the City of Grand Terrace must now adopt. 10 Chapter 4 -Comprehensive Fee Schedules, Fines and Taxes 4.68 Sewer Connections 4.72 Sewer User Charges Chapter 13 —.Public Services 13.04 Sewer Connections 13.08 Sewer User Charges 13.12 Wastewater Collection and Treatment System 5. Prepare staff report and workshop presentation materials for submission to the City Council. Such materials shall include preparation of PowerPoint presentation regarding issues and findings, handouts and other materials necessary to provide adequate information to the City Council in support of recommendations. 6. Coordinate Proposition 218 and Proposition 26 notification for any proposed sewer user rate increase ordinances, including coordination of notification through the City's solid waste franchise service provider. 7. Provide technical support to the City staff during all City Council meetings relating to the Sewer User Billing System, including presentations before the council and responses to questions. 8. Act as the City's project manager and provide appropriate administrative and technical support to existing City staff for other sewer collection and treatment studies and activities as requested. Such studies may include development of scope of work for engineering and technical studies relating to sewer collection operations, flows, volumes, composition of waste flow and facilities needs. Professional Services Agreement Sewer Billing transfer.doc 11 r EXHIBIT "B" Key Personnel KEY PERSONNEL The following information provides a summary of the qualifications, responsibilities,general experience,and time commitment for the managerial and supervisory professionals that will be assigned to the study. Responsibility Relevant Experience/information J John Kersten Vice Executive Project Director and Principal—In-Charge for following 30 years President/Project commitment for clients all over US—JEA,City of Raleigh;Orlando Director project execution Utilities Commission; City of Columbia,SC;Winston— Time Confirming that Salem,NC;City of Garland,TX; City of High Court,NC; Commitment: Location:Orlando,FL appropriate Greenville Utilities Commission,NC,City of Lakeland, As-needed resources are FL,City of Las Cruces,NM;City of Greensboro,NC;City available for of Danville,VA;City of Anderson,SC;City of project Wilmington,NC CIA Review National Practice Lead for all municipal water and wastewater financial consulting work Keith,Barber, Principal Consultant/ s Provide direciioin a Project Manager for rate"study projects-with the 35-years' Technical Advisor-,, and tecfnical, following clients:Metropolitan Sewer Distrin ai guidance as, Louis;the Cities of Kansas City,MOIL Ldttie Rock,AR;' Time; Location:Overlapd..:;' necessary:- Tulsa,OK,.Topeka,KS;and'Baton Rouge„l.A, Commitment: Park,KS Attend all project Project Manager for a comprehensive:water demand, 35% meetings and= study for the Illinois American.Water Company. Presentations Project Manager-for Black&Veatch's rate and financial- feasibilky work-forthe City'of Los Angeles,,CA Bureau', of Sanitation since,i987" Project Manager for Water Rate Study for Coachella Valley Water district Ann Bui Director/ Responsible for 22 years of strategic and business planning,utility 22 years Project Manager day-to-day ratemaking,and financial valuation studies for utilities execution of work =" West Coast Lead for water and wastewater financial Time Location:Irvine,CA plan and planning and rate work Commitment: presentations Project Lead for multi-tiered debt financing sales 25% Responsible for totaling over$2 billion project budget Project Manager for rate and connection fee studies and schedule for the following CA clients following Prop 218 and AB Attend all project 1600 requirements:Garden Grove,Antioch,DSRSD, meetings and CCSD,Chino Hills,San Clemente,Downey,Indio Water presentations Authority,San Juan Capistrano,Long Beach,Marin MWD,and Oxnard Vice Chair of AWWA Finance,Accounting and Management Controls and Member of Strategic Management Practices Committees Kenneth Director/Senior Provide CIS Business Development;CIS for Public and Municipal- Tomchuk Advisor—CIS guidance as-s Utilities with'40 years.expenence:throughout the 40 years necessary. United States"and Canada Time Commitment: Location:Dallas,TX. 15% Rich ten Engineering Provide ' Lead and Project Engineer for projects with the Bosch,P.E. Manager/Senior engineering and following clients:Orange County Sanitation and Water 21 years Advisor-Engineering technical guidance District,Irvine Ranch Water District,City of Rialto,City as necessary, of Tustin,City of San Bernandino,City of Scottsdale, Time Attend project City of Carlsbad,Cucamonga Valley Water District, Commitment: Location:Irvine,CA meetings if Chino Hills 15% necessary Alberto Consultant/ Responsible for Lead analyst for rate study projects with the following Morales Lead Financial review of sewer clients:Garden Grove,San Juan Capistrano,.City of Los 8 years Analyst rate model Angeles,Cambria Community Service District,Oxnard, Provide updates Downey,Antioch,Chino Hills,and San Clemente-- Time Location:Los on model Lead consultant on EI Dorado Irrigation District and Commitment: Angeles,CA Attend project City of Henderson.Capital Prioritization Study 60% meetings 12 A.,01- CALIFORNIA AGENDA REPORT MEETING DATE: May 24, 2011 Council Item (X) CRA Item ( ) TITLE: 2011-2012 Landscape & Lighting Assessment District 89-1 PRESENTED BY: Richard Shields, Director of Building & Safety/Public Works RECOMMENDATION: 1. Adopt the attachment Resolution ordering the City Engineer to prepare plans, specifications, cost estimates, diagrams and assessment reports, (Engineer's Report). 2. Adopt attached Resolution approving Engineer's Report. 3. Adopt attached Resolution of Intentions. BACKGROUND: In 1989 the City Council required developers to form an Assessment District for the purpose of maintaining the landscaping and lighting as required by the conditions of approval. Subsequently, two other developments were required to be included in this program. The developments were annexed to the original Assessment District as Annexation No. 1. The 89-1 District boundaries of the Landscape and Lighting Assessment District are the boundaries of Tract 13364, filed in Map Book 203, pages 89 through 92, records of San Bernardino County. The boundaries of Annexation No. 1 are the boundaries of Tract 14264 and 14471, filed in Map Book 242, pages 17 and 28 and Map Book 237, page 41 and 42 respectively of said County. DISCUSSION: Each year an Engineer's Report is prepared and considered by City Council for a levy of annual assessment for maintenance and operation of the District. Assessments for each parcel are made in the same manner and at the same time as payments are made for property taxes for each Property. COUNCIL AGENDA ITEM NO.�� The annual report takes into consideration costs of operation and maintenance for the previous year and the amount assessed along with projects cost of operation and maintenance for the coming fiscal year. Based on the costs and estimates, credits are given for any funds assessed over and above the cost of operation and maintenance for the costs incurred over and above the previous year. These costs are then spread to the benefitting properties. Staff has reviewed the expenditure for fiscal (2010 -2011) year, based on our best estimate, the costs of operation and maintenance should approximately equal the assessment levied and collected. It is our estimate that these costs and assessments should remain the same for the coming fiscal year. Servicing and administration of the City's landscape maintenance program shall be according to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15, of the Street and Highways Code of the State of California. The proceedings will be conducted under the Landscaping and Lighting Act of 1972, Part 2, Division 15, Sections 22500 through 22679, of the Streets and Highways Code of the State of California. FISCAL IMPACT: Attached as Exhibit A, is a copy of the Engineers Report for Fiscal Year 2011- 2012, along with the Order of Procedures and copies of the resolutions proposed for adoption. RECOMMENDATIONS: Staff recommends that the City Council: 1. Adopt the attached resolution ordering the City Engineer to prepare plans, specifications, cost estimates, diagrams and assessment reports, (Engineers Report). 2. Adopt attached Resolution approving Engineer's Report. 3. Adopt attached Resolution of Intentions. Respectfully submitted, Ri hard S fields, Director of Building & Safety/Public Works Manager Approval: Betsy Adams City Manager ATTACHMENTS: 1. Order of Procedure. 2. Instruction Sheet. 3. Resolution Ordering Preparation of Engineer's Report. 4. Resolution Approving Engineer's Report. 5. Resolution of Intention. LAW OFFICES OF HARPER& BURNS LLP A LIMITED LIABILITY PARTNERSHIP INCLUDING A PROFESSIONAL CORPORATION 453 S.GLASSELL STREET JOHN R.HARPER" ORANGE,CALIFORNIA 92866 RIVERSIDE/SAN BERNARDINO CO. ALAN R.BURNS (951)674-0698 COLIN R.BURNS (714) 771-7728 OF COUNSEL FAX(714) 744-M JUDI A CURTIN* MICHAEL MONTGOMERY• 'A PROFESSIONAL CORPORATION May 4,2011 Mr. Richard Shields,Director of Building/Safety&Public Works CITY OF GRAND TERRACE 22795 Barton Road Grand Terrace, California 92324 RE: CITY OF GRAND TERRACE LANDSCAPING AND STREET LIGHTING DISTRICT NO. 89-1 Dear Richard: Enclosed herein please find the following: 1. ORDER OF PROCEDURE; 2. INSTRUCTION SHEET; 3. RESOLUTION ORDERING PREPARATION OF ENGINEER'S "REPORT"; 4. RESOLUTION APPROVING ENGINEER'S "REPORT"; 5. RESOLUTION OF INTENTION; The ORDER OF PROCEDURE sets forth the schedule for the adoption of the Resolutions scheduled for presentation to the City Council on May 24, 2011. Note that the proceedings contemplate a Public Hearing to be scheduled for June 14, 2011. (Please note that the statute no longer requires a public meeting if the assessment is not increased. Additionally, the forty-five (45)day notice period no longer applies).- Immediately upon adoption of the Resolutions, the notice requirements, as set forth in the INSTRUCTION SHEET, should be accomplished. I would appreciate receiving a return copy of the INSTRUCTION SHEET,with initials and dates indicating compliance. Mr. Richard Shields,Director of Public Works CITY OF GRAND TERRACE May 4,2011 Page Two As soon as available,please forward conformed copies of all of the Resolutions. Should you have any comments and/or questions,please call. Very truly yours, HARPER& BURNS LLP John R. Harper, City Attorney Enclosure(s) Cc: Brenda Mesa, City Clerk ORDER OF PROCEDURE CITY OF GRAND TERRACE LANDSCAPING AND STREET LIGHTING DISTRICT NO. 89-1 DATE OF MEETING: May 24,2011 STAFF: Present map showing the general boundaries of the area of the District,and showing in general terms the works of improvement to be maintained. CITY COUNCIL: Adopt RESOLUTION ORDERING CITY ENGINEER TO PREPARE PLANS, SPECIFICATIONS, COST ESTIMATE, DIAGRAM AND ASSESSMENT. STAFF: Present to the City Council the "Report," pursuant to the "Landscaping and Street Lighting Act of 1972," consisting of the following: 1. Plans and specifications; 2. Estimate of costs; 3. Diagram of proposed District; 4. Assessment of costs. CITY COUNCIL: Adopt RESOLUTION APPROVING ENGINEER'S "REPORT." CITY COUNCIL: Adopt RESOLUTION OF INTENTION. INSTRUCTION SHEET CITY OF GRAND TERRACE LANDSCAPING AND STREET LIGHTING DISTRICT NO. 89-1 PUBLICATION OF RESOLUTION OF INTENTION The CITY CLERK shall cause publication of the Resolution of Intention, which publication shall be pursuant to Section 6061 of the Government Code of the State of California; said publication shall be made one (1) time and shall be completed at least ten(10) days prior to the date scheduled for the Public Hearing. CERTIFICATE OF PUBLICATION OF RESOLUTION OF INTENTION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) CITY OF GRAND TERRACE ) I,Brenda Mesa,declare under penalty of perjury, CERTIFY as follows: That the undersigned is now, and at all times herein mentioned was,the duly appointed, qualified and acting CITY CLERK of the CITY OF GRAND TERRACE, CALIFORNIA. That the undersigned did cause the Resolution of Intention to be published pursuant to Government Code 6061, said publication having been completed ten(10) days prior to the date set for the Public Hearing. Executed on May 24,2011 at Grand Terrace, California. City Clerk for the City of Grand Terrace RESOLUTION NO.2011- A RESOLUTION OF THE CITY COUNCIL ORDERING THE PREPARATION OF PLANS,SPECIFICATIONS, COST ESTIMATE,DIAGRAM,ASSESSMENT AND REPORT PURSUANT TO THE PROVISIONS OF DIVISION 15,PART 2 OF THE'STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA,FOR PROCEEDINGS FOR THE ANNUAL ASSESSMENT LEVY AFTER FORMATION OF A DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF GRAND TERRACE, CALIFORNIA, desires to initiate proceedings for the annual levy of assessments for a landscaping and street lighting district pursuant to the terms and provisions of the "Landscaping and Street Lighting Act of 1972," being Division 15, Part 2 of the Streets and Highways Code of the State of California, in what is known and designated as CITY OF GRAND TERRACE LANDSCAPING AND STREET LIGHTING DISTRICT NO. 89-1 (hereinafter referred to as the "District"); and, WHEREAS, the proceedings for the annual levy of assessments shall relate to the fiscal year commencing July 1,2011,and ending June 30,2012; and, WHEREAS, there has been submitted to this City Council for its consideration at this time, a map showing the boundaries of the territory affected by the levy of the assessment for the above referenced fiscal year, said map further showing and describing in general the works of improvement proposed to be maintained in said District, said description being sufficient to identify the works of improvement and the areas proposed to be assessed for said maintenance thereof; and, WHEREAS, the provisions of said Division 15, Part 2 require a written "Report," consisting of the following: 1. Plans and specifications of the area of the works of improvement to be maintained; 2. An estimate of the costs for maintaining the improvements for the above referenced fiscal year; 3. A diagram of the area proposed to be assessed; 4. An assessment of the estimated costs for maintenance work for said fiscal year. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grand Terrace does hereby resolve, determine and order as follows: SECTION 1. That the above recitals are all true and correct. SECTION 2. That a map,entitled CITY OF GRAND TERRACE LANDSCAPING AND STREET LIGHTING DISTRICT NO. 89-1 as submitted to this City Council, showing the boundaries of the proposed area to be assessed and showing the works of improvement to be maintained, is hereby approved, and a copy thereof shall be on file in the Office of the City Clerk and open to public inspection. The proposed parcels and properties within said area are those to be assessed to pay certain of the costs and expenses for said maintenance work. SECTION 3. That the proposed maintenance work within the area proposed to be assessed shall be for certain street lighting and landscaping improvements, as said maintenance work is set forth in the "Report"to be presented to this City Council for consideration. SECTION 4. That Richard Shields, Director of Public Works, or his designee, is hereby ordered to prepare and file with this City Council, a "Report" relating to-said annual assessment and levy in accordance with the provisions of Article IV, commencing with Section 22565 of Chapter 1 of the Streets and Highways Code of the State of California. SECTION 5. That upon completion, said "Report" shall be filed with the City Clerk, who shall then submit the same to this City Council for its consideration pursuant to Sections 22623 and 22624 of said Streets and Highways Code. PASSED, APPROVED AND ADOPTED this 24t` of May, 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor of the City of Grand Terrace ATTEST: City Clerk for the City of Grand Terrace STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) CITY OF GRAND TERRACE ) I, Brenda Mesa, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of said City Council held on the 24t` day of May,2011, and that the same was passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: EXECUTED this 24t'day of May,2011, at Grand Terrace, California. City Clerk for the City of Grand Terrace [SEAL] RESOLUTION NO.2011- A RESOLUTION OF THE CITY COUNCIL APPROVING THE ENGINEER'S "REPORT" FOR THE ANNUAL LEVY OF ASSESSMENTS FOR THE FISCAL YEAR 2010-2011 IN A DISTRICT WITHIN SAID CITY WHEREAS, the CITY COUNCIL of the CITY OF GRAND TERRACE, CALIFORNIA, pursuant to the provisions of Division 15, Part 2 of the Streets and Highways Code of the State of California, did, by previous Resolution, order the preparation of an Engineer's "Report" for the annual levy of assessments, consisting of plans and specifications, an estimate of the cost, a diagram of the district, and an assessment relating to what is now known and designated as CITY OF GRAND TERRACE LANDSCAPING AND STREET LIGHTING DISTRICT NO. 89-1 (hereinafter referred to as the "District"); and, WHEREAS, there has now been presented to this City Council the "Report" as required by said Division 15 of the Streets and Highways Code and as previously directed by Resolution; and, WHEREAS,this City Council has now carefully examined and reviewed the "Report" as presented, and is satisfied with each and all of the items and documents as set forth therein, and is satisfied that the assessments, on a preliminary basis, have been spread in accordance with the benefits received from the maintenance to be performed,as set forth in said"Report." NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grand Terrace does hereby resolve,determine and order as follows: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the "Report" as presented, consisting of the following: A. Plans and specifications; B. Estimate of cost; C. Diagram of the District; D. Assessment of the estimated cost; is hereby approved on a preliminary basis, and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the Engineer's "Report." PASSED, APPROVED AND ADOPTED this 24`h day of May, 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor for the City of Grand Terrace ATTEST: City Clerk for the City of Grand Terrace STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO CITY OF GRAND TERRACE ) I, Brenda Mesa, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. was duly passed, approved, and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of said City Council held on the 20 day of May,2011, and that the same was passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Executed this 240'day of May,2011, at Grand Terrace, California. City Clerk for the City of Grand Terrace [SEAL] RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL DECLARING ITS INTENTION TO PROVIDE FOR AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR CERTAIN MAINTENANCE IN AN EXISTING DISTRICT,PURSUANT TO THE PROVISIONS OF DECISION 15, PART 2 OF THE STREET AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA, AND SETTING A TIME AND PLACE FOR THE PUBLIC HEARING THEREON WHEREAS, the CITY COUNCIL of the CITY OF GRAND TERRACE, CALIFORNIA, desires to form a landscaping maintenance district pursuant to the terms and provisions of the "Landscaping and Street Lighting Act of 1972", being Division 15, Part 2 of the Streets and Highways Code of the State of California,to be known and designated as CITY OF GRAND TERRACE LANDSCAPING AND STREET LIGHITNG DISTRICT NO. 89-1 (hereinafter referred to as the "District"); and, WHEREAS, at this time, this City Council is desirous to provide for the annual levy of assessments for the territory within the District for the next ensuing fiscal year,to provide for the costs and expenses necessary for continual maintenance of improvements within said District; and, WHEREAS, at this time there has been presented and approved by this City Council,the Engineer's "Report" as required by law, and this City Council is desirous of proceeding with the proceedings for said'annual levy. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grand Terrace does hereby resolve,determine and order as follows: SECTION 1. That the above recitals are all true and correct. PUBLIC INTEREST SECTION 2. That the public interest and convenience requires, and it is the intention of this City Council, to undertake proceedings for the annual levy and collection of special assessments for the continual maintenance of certain improvements, all to serve and benefit said District as .said area is shown and delineated on a map as previously approved by this City Council and on file in the Office of the City Clerk, open to public inspection, and herein so referenced and made a part hereof, and proposed changes thereto are set forth in the "Report" of the Engineer, incorporated herein as a part hereof. REPORT SECTION 3. That the "Report" of the Engineer regarding the annual levy for said District, which "Report" is for maintenance for the fiscal year 2005-2006 is hereby approved and is directed to be filed in the Office of the City Clerk. ASSESSMENT SECTION 4. That the public interest and convenience requires, and it is the intention of this City Council to order the annual assessment levy for the District as set forth and described in said Engineer's "Report," and further it is determined to be in the best public interest and convenience to levy and collect annual assessments to pay the costs and expense of said maintenance and improvement as estimated in said "Report." DESCRIPTION OF MAINTENANCE SECTION 5. The assessments levied and collected shall be for the maintenance of certain landscaping and street lighting improvements, as set forth in the Engineer's "Report," referenced and so incorporated herein. COUNTY AUDITOR SECTION 6. The County Auditor shall enter on the County Assessment Roll the amount of the assessments, and shall collect said assessments at the time and in the same manner as County taxes are collected. After collection by the County, the net amount of the assessments, after the deduction of any compensation due to the County for collection, shall be paid to the Treasurer for purposes of paying for the costs and expenses of said District. SPECIAL FUND SECTION 7. That all monies collected shall be deposited in a special fund known as "SPECIAL FUND,CITY OF GRAND TERRACE LANDSCAPING AND STREET LIGHTING DISTRICT NO. 89-1 Payment shall be made out of said fund only for the purpose provided for in this Resolution, and in order to expedite the making of this maintenance and improvement, the City Council may transfer into said funds as it may deem necessary to expedite the proceedings. Any funds shall be repaid out of the proceeds of the assessments provided for in this Resolution. BOUNDARIES OF DISTRICT SECTION 8. Said contemplated maintenance work is, in the opinion of this City Council, of direct benefit to the properties within the boundaries of the District, and this City Council makes the costs and expenses of said maintenance chargeable upon a district, which district said City Council hereby declares to be the district benefited by said improvement and maintenance, and to be further assessed to pay the costs and expenses thereof. Said District shall include each and every parcel of land within the boundaries of said District, as said District is shown on a map as approved by this City Council and on file in the Office of the City Clerk, and so designated by the name of the District. SECTION 9. NOTICE IS HEREBY GIVEN THAT TUESDAY, THE JUNE 14, 2011, AT THE HOUR OF 6:00 O'CLOCK P.M., IN THE CITY COUNCIL CHAMBERS LOCATED AT 22795 BARTON ROAD, GRAND TERRACE, CALIFORNIA,IS THE TIME AND PLACE FIXED BY THIS CITY COUNCIL FOR THE HEARING OF PROTESTS OR OBJECTIONS IN REFERENCE TO THE ANNUAL LEVY OF ASSESSMENTS, TO THE EXTENT OF THE MAINTENANCE,AND ANY OTHER MATTERS CONTAINED IN THIS RESOLUTION BY THOSE PROPERTY OWNERS AFFECTED HEREBY. ANY PERSONS WHO WISH TO OBJECT TO THE PROCEEDINGS SHOULD FILE A WRITTEN PROTEST WITH THE CITY CLERK PRIOR TO THE TIME SET .AND' SCHEDULED FOR SAID PUBLIC HEARING. NOTICE SECTION 10. The City Clerk is directed to publish this Resolution of Intention pursuant to Government Code Section 6061, said publication to be completed.no later than ten (10) days prior to the date set for the Public Hearing. EFFECTIVE DATE SECTION 11. That this Resolution shall take effect immediately upon its adoption. PROCEEDINGS INOUHUES SECTION 12. For any and all information relating to the proceedings,protest procedure, any documentation and/or information of a procedural or technical nature, your attention is directed to the below listed person at the local agency or department so designated: Mr. Richard Shields,Director of Building/Safety &Public Works CITY OF GRAND TERRACE 22795 Barton Road Grand Terrace, California 92324 PASSED, APPROVED AND ADOPTED this 24 h day of May, 2011 day of by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor for the City of Grand Terrace ATTEST: City Clerk for the City of Grand Terrace STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) CITY OF GRAND TERRACE ) I, Brenda Mesa, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of said City Council held on the 24 h day of May,2011, and that the same was passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: EXECUTED this 24 h day of May,2011, at Grand Terrace, California. City Clerk for the City of Grand Terrace [SEAL] CITY OF GRAND TERRACE ENGINEER'S REPORT FOR LEVY OF 2011 -2012 F.Y.ANNUAL ASSESSMENTS IN LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT 89-1 Prepared by: Carlos Zamano May 2011 W.O. # 12.716 TABLE OF CONTENTS PAGE INTRODUCTION 2 ENGINEER'S REPORT PART A-Plans and Specifications 6 PART B - Estimates of Costs g PART C - Assessment Roll 12 PART D -Method of Apportionment of Assessment 13 PART E-Property Owners List 14 PART F- ASSESSMENT DIAGRAM 19 ENGINEER'S REPORT LANDSCAPING AND LIGHTING DISTRICT NO. 89-1 GRAND TERRACE 2011 -2012 F. Y. ANNUAL ASSESSMENT The undersigned respectfully submits the enclosed Engineer's Report as directed by the City Council. DATED: 0q11j ENGINE EA OF WO By: Carlos Zamank_j I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment and Assessment Diagram thereto attached, was filed with me on the day of , 2011. Clerk of the City of Grand Terrace Grand Terrace, California By: Brenda Mesa I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment and Assessment Diagram thereto attached, was approved by the City Council of the City of Grand Terrace, California, on the day of , 2011. Clerk of the City of Grand Terrace Grand Terrace, California By: Brenda Mesa Page 1 INTRODUCTION The City Council of the City of Grand Terrace adopted it's General Plan with various elements to provide guidelines for orderly development within the community. The City Council further adopted ordinances and regulations governing the development of land providing for the installation and construction of certain landscaping, lighting and appurtenant facilities to enhance the quality of life and to benefit the value of property. The requirement for the construction and installation of landscaping, lighting and appurtenant facilities is a condition of approval for development and is a requirement of.issuance of a permit for the construction of any residential, commercial, industrial and planned unit development. Landscaping and appurtenant facilities generally include trees, shrubs,plants, turf, irrigation systems, and necessary appurtenances including curbs, hardscape, monumentations, fencing located in public right-of-ways, medians,parkways, and/or easements adjacent to public right-of- ways, in and along public thoroughfares and certain designated primary and secondary arterials. Lighting and appurtenant facilities includes poles, lighting fixtures, conduits and the necessary equipment to maintain, operate and replace a lighting system at designated intersections, in medians, parkways and adjacent to certain public facilities in and along certain streets, right-of- ways and designated lots. The installation of landscaping and lighting systems and the construction of the necessary appurtenant facilities is the responsibility of the property owner/applicant, as conditions of approval of a development application. The City may cause the installation by property owners directly, or accept financial arrangements for installation of these facilities. The cost of servicing, operation, maintenance, repair and replacement of the landscaping, lighting and appurtenant facilities in turn becomes the responsibility of the benefitting properties. The owners/applicants petitioned for formation of the Landscaping Lighting Assessment District and/or annexation. These have been completed, and will increase the City's obligation for maintenance and servicing. The City of Grand Terrace is administering a lighting system for the benefit of all parcels of land within the City. The lighting benefit is directly related to public,safety and property protection. These benefits have been studied widely, locally, regionally and nationally. Page 2 I The City has formed Landscaping and Lighting Assessment District 89-1 and subsequently annexed other,parcels as Annexation No. 1 to said District to insure a fair and equitable levying of the necessary costs of servicing and maintenance of the respective facilities, which in turn will enhance the value of each and every parcel in the District directly and collectively. � 1 The 89-1 District Boundaries of the Landscaping and Lighting Assessment District are the boundaries of Tract 13364 filed in Map Book 203, Pages 89 through 92, Records of San Bernardino County. The boundaries of Annexation No. 1 are the boundaries of Tracts 14264 and 14471, filed in Map Book 242,Pages 17 and!18, and Map Book 237, Pages 41 and 42, respectively, of said County. Servicing and administration of the City's landscape maintenance program shall be according to the provisions of the Landscaping and Lighting Act of 1972, Part 2,Division 15 of the Streets and Highways Code of the State of California. This report is being prepared to provide for the annual assessment within these boundaries. - Payment for-the assessment for each parcel will be made in the same manner and at the same time as payments are made for property taxes;for each Property. The proceedings will be conducted under the;Landscaping and Lighting Act of 1972,Part 2, Division 15, Sections 22500 through 22679, of the Streets and Highways Code of the State of California. This annual Report is presented for the purpose of levy of annual assessment to the above described properties for the purpose of maintaining the lighting and landscaping during the fiscal year 2011 -2012. This report contains the necessary data required to conduct the proceedings and is submitted to the Clerk of the City for filing. Page 3 CITY OF GRAND TERRACE ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS LANDSCAPING AND-LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE FOR ANNUAL ASSESSMENTS F.Y. 2011 - 2012 Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, and in accordance with the Resolution of Intention,being Resolution No. , adopted by the City of Grand Terrace, State of California, in connection with the proceedings for: GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 AND ANNEXATION NO. 1 TO SAID DISTRICT,hereinafter referred to as the"Assessment District', I, Carlos Zamano, the duly appointed ENGINEER OF WORK, submit herewith the "Report"consisting of six-(6)parts as follows: PART A Plans and Specifications for the proposed improvements are filed herewith and made a part hereof. Said plans and specifications are on file in the Office of the Clerk of the City. PART B An estimate of the cost of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the Clerk of the City. PART C An assessment of the estimated costs of the improvements on each benefitted lot or parcel of land within the Assessment District. PART D A proposed assessment of the total amount of the costs and expenses of the improvements upon the several lots and parcels of land within the Assessment District, in proportion to the estimated benefits to be received by such lots and parcels, is set forth upon the assessment roll filed herewith and made part hereof. Description of the work for the proposed improvements and description of all right-of-way, easements and lands to be acquired, if necessary. Page 4 PART E A list of the names and addresses of the owners of real property within this Assessment District, as shown on the last equalized roll of the Assessor of the County of San Bernardino which are incorporated herein by reference. PART F The Diagram of the Assessment District Boundaries showing the exterior boundaries of the Assessment District, and the lot dimensions of each lot or parcel of land within the Assessment District has been submitted to the Clerk of the Agency, a facsimile is included herein. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of San Bernardino, for the year when this Report was prepared and are incorporated by reference herein and made part of this Report. Page 5 PART A PLANS AND SPECIFICATIONS The installation of planting, landscaping, irrigation systems, lighting and the construction of appurtenant facilities to be operated, serviced and maintained, is more specifically described herein whereas, the landscaping and lighting facilities have been or will be provided by developers as a condition of subdivision of land, on part of the Conditional Use review and approval process. The facilities to be maintained and serviced are generally described as follows: DESCRIPTION OF IMPROVEMENTS FOR GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 The improvements are the operation,maintenance and servicing of landscaping, lighting and appurtenant facilities described as follows: 1. Tract 13364 (a) Landscgping Landscaping;planting, shrubbery,trees,turf, irrigation systems, monuments,hardscapes,walls, fencing and appurtenant facilities in public right-of-ways and easements within the proposed boundary of said Assessment District. The locations of landscaping and appurtenant facilities are depicted on the Assessment Diagram as shown in Part F, herein. (b) Lighting Poles, fixtures, bulbs, conduits, equipment posts and pedestals,metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of said Assessment District. 2. Tract 14264 (a) Landscaping Landscaping,planting, shrubbery,trees,turf, irrigation system and appurtenant facilities within the Gage Canal right-of-ways. During the fiscal year 2011-2012,responsibility for the maintenance of these facilities shall remain with the developer. Water shall be supplied by and paid for through developer's meter and no costs shall be shown on the tax rolls as assessments for the landscape maintenance during fiscal year 2011-2012. Page 6 (b) Lighting Poles,fixtures, bulbs, conduits, equipment,posts, pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District.A total of 7 street lights are included in the boundaries of this development. 3. Tract 14471 (a) Landscaping Landscaping,planting shrubbery, trees, and vines with Lot"A"of said Tract 14471, along with irrigation system for the improvements within Lot "A" (b) Li tin Poles,fixtures, conduits, equipment,posts,pedestals,metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the boundaries of the District.A total of 6 street lights are maintained within the boundaries of this development. Page 7 PART B ESTIMATE OF COST The cost of maintaining improvements for Fiscal Year 2010-2011 as described in Part A are summarized as follows: Tract 13364 1. Energy Costs - Street Lighting $ 800.00 2. Landscaping (a) Water Supply 800.00 (b) Mowing and Trimming, etc. 2,400.00 (c) Replacement Parts 0.00 3. Contingencies .(a) Legal 1,200.00 (b) Engineering 426.58 (c) Auditor Controller Charge 20.00 (d) Shortage (Last Fiscal Year) 0.00 ANNUAL COSTS (TOTAL) $5,646.58 J Tract 14471, 1. Energy Costs-Street Lighting 600.00 2. Landscaping (a) Water Supply 300.00 (b) Mowing and Trimming,etc. 2,669.50 (c) Replacement Parts 200.00 3. Contingencies (a) Legal 1,049.25 (b) Engineering 423.47 (c) Auditor Controller Charge 17.00 (d) Shortage(Last F.Y.) . 0.00 ANNUAL COST(TOTAL) $5,259.22 Page 8 J Tract 14264 1. Energy Costs - Street Lighting $ 866.00 2. Landscaping (a) Water Supply 0.00 (b) Mowing and Trimming, etc. 0.00 (c) Replacement Parts 0.00 3. Contingencies (a) Legal 250.75 (b) Engineering 97.89 (c) Auditor Controller Charge 1.00 (d) Shortage(Last F.Y.) 0.00 ANNUAL COST(TOTAL) $1,215.64 Page 9 ASSESSMENT ROLL-FOR GRAND TERRACE LANDSCAPING AND LIGHTING DISTRICT NO. 89-1 F.Y. 2011-2012. ASSESSOR'S PARCEL ASSESSMENT AMOUNT 0275-301-08, $282.33 0275-301-09 $282.33 0275-301-10 $282.33 0275-301-11 $282.33 0275-301-12 $282.33 0275-301-13 $282.33 0275-301-14 $282.33 0275-301-15 $282.33 0275-301-16 $282.33 0275-301-17 $282.33 0275-301-18 $282.33 0275-301-19 $282.33 0275-301-20 $28233 0275-301-21 $282.33 0275-301-22 $282.33 0275-301-23 $282.33 0275-301-24 $282.33 0275-301-25 $282.33 0275-301-26 $282.33 0275-301-27 $282.33 Page 10 ASSESSOR'S PARCEL ASSESSMENT AMOUNT 0275-251-81 $1,215.64 1178-181-16 $309.36 1178-181-17 $309.36 1178-181-18 $309.36 1178-181-19 $309.36 1178-181-20 $309.36 1178-181-21 $309.36 1178-181-22 $309.36 1178-181-23 $309.36 1178-181-24 $309.36 1178-181-25 $309.36 1178-181-26 $309.36 1178-181-27 $309.36 1178-181-28 $309.36 1178-181-29 $309.36 1178-181-30 $309.36 1178-181-31 $309.36 1178-181-32 $309.36 Page 11 ASSESSMENT ROLL The proposed assessment and the amount of assessment for Fiscal Year 2009-2010 apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office is shown on "Assessment Roll for Grand Terrace Landscaping and Lighting District No. 89-1 and Annexation No. 1" to said District for Fiscal Year 2011-2012. The description of each lot or parcel is part of the records of the Assessor of the County of San Bernardino and these records are, by reference, made part of this Report. The total proposed assessment for the 2011-2012 Fiscal Year is $12,121.44. Page 12 PART D METHOD OF APPORTIONMENT OF ASSESSMENT The method of apportionment will be in accordance with benefit received. The benefit is increased in property values received. The benefit is based on increase in property values derived from the facilities provided by the District. In each of the three areas, the benefit is based on the total cost of maintenance within that area, with the total cost for area being assessed equally among the lots within these areas. Page 13 PART E PROPERTY OWNERS LIST The property owner list with the names and addresses of each property owner of each lot or parcel, as shown on the Assessment Diagram in Part F herein,is the list of property owners shown on the last equalized roll of the Assessor of the County of San Bernardino and is, by reference,made part of this report(see Part C, Assessment Roll). ASSESSOR'S PARCEL NO. PROPERTY OWNER 275-301-08 Vagas Family 4-28-88 - 37821 Grand Oaks Ave. Palm Desert, CA 92211 275-301-09 Vagas Family 4-28-88 37821 Grand Oaks Ave. Palm Desert, CA 92211 275-301-10 C &E Mauerhan Family L.P. 12005 Aspen Circle,Apt. C Grand Terrace, CA 92313 275-301-11 C &E Mauerhan Family L.P. 12005 Aspen Circle, Apt. C Grand Terrace, CA 92313 275-301-12 Pannier, BarbaraJ. Trust 1309 Ashford Ln. Newport Beach, CA 92660 275-301-13 Velarde 07/25/80/lt 17392 Wild Rose Ln. Huntington Beach, CA 92649 275-301-14 Poon,Frank K.C./te Poon,Lucy H.P. 1688 Highland Oaks Dr. Arcadia, CA 91006 Page 14 ASSESSOR'S PARCEL NO. PROPERTY OWNER 275-301-15 Vagas,Raymond J./te Vagas, Grace C. 37821 Grand Oaks Ave. Palm Desert, CA 92211 275-301-16 Vagas,,Raymond J./te Vagas, Grace C. 37821 Grand Oaks Ave. Palm Desert, CA 92211 275-3 0.1-17 Navarro Trust 05/01/07 19450 Nuthatch St. Perris, CA 92570 275-301-18 Albert Navarro 11346 Magnolia, C Riverside, CA 92505 275-301-19 Kader,Abba 28582 Murrelet Drive Laguna Niguel, CA 92677 275-301-20 Davanzo, Frank V. Davanzo, Carol A. 27192 Westridge Ln. Laguna Hills, CA 92653 275-301-21 C&E Mauerhan Family L.P. 12005 Aspen Circle,Apt. C Grand Terrace, CA 92313 275-301-22 Navarro Trust 05/01/07 19450 Nuthatch St. Perris, CA 92570 275-301-23 C &E Mauerhan Family L.P. 12005 Aspen Circle,Apt. C Grand Terrace, CA 92313 Page 15 ASSESSOR'S PARCEL NO. PROPERTY OWNER 275-301-24 Terrace Pines Development Co. 12005 Aspen Circle,Apt. C Grand Terrace, CA 92313 275-301-25 C &E Mauerhan Family L.P. 12005 Aspen Circle,Apt. C Grand Terrace, CA 92313 275-301-26 Kader,Abba 28582 Murrelet Drive Laguna Niguel, CA 92677 275-301-27 Strickler, Corbin T. P.O. Box 43 Rimforest, CA 92378 275-251-81 North Waterford Apartments 1777 Botelho Drive, Suite 300 Walnut Creek, CA 94596 1178-181-16 Black MD&VL Living Trust 22163 Pico Street Grand Terrace, CA 92313 1178-181-17 Abdeljawas,Jawad Saman 22710 Pico St. Grand Terrace, CA 92313 1178-181-18 Bigelow, Donovan M. Bigelow, Juanita J. 22700 Pico St. Grand Terrace, CA 92313 1178-181-19 Gonzales,David Gonzales,Betty P. 12685 Oriole Avenue Grand Terrace, CA 92313 Page 16 ASSESSOR'S PARCEL NO. PROPERTY OWNER 1178-181-20 Harkey, Kirk R. Harkey, Kristen M. 12675 Oriole Ave. Grand Terrace, CA 92313 1178-181-21 Hubbs, Lucile M. Henson,Paula A. 22755 Franklin St. Grand Terrace, CA 92313 1178-181-22 Keeling, Teresa S. Keeling,David T. Sr. 22745 Franklin St. Grand Terrace, CA 92313 1178-181-23 Ruiz,Dora G. 22735 Franklin St. Grand Terrace, CA 92313 1178-181-24 Matheson, Wayne A. Mattheson, Esther D. 12655 Pruitt Ct. Grand Terrace, CA 92313 1178-181-25 Yong,Alberta L-h 12645 Pruitt Ct. Grand Terrace, CA 92313 1178-181-26 Shimel,Marvin M./tr Shimel,Virginia L. 22240 Van Buren St. - Grand Terrace, CA 92313 1178-181-27 Richardson,Blair Richardson,Kim 12625 Pruitt Ct. Grand Terrace, CA 92313 1178-181-28 Ortiz-Garay,Elizabeth 12615 Pruitt Ct. Grand Terrace. CA 92313 Page 17 ASSESSOR'S PARCEL NO. PROPERTY OWNER 1178-181-29 Martinez, Hema 12610 Pruitt Ct. Grand Terrace, CA 92313 1178-181-30 Delgado, Emiliano Carrillo,Julianne 12620 Pruitt Ct. Grand Terrace, CA 92313 1178-181-31 Acosta, Larry Acosta,Kori 12630 Pruitt Ct. Grand Terrace, CA 92313 1178-181-32 Bavadian, Shapour Barvadian, Gita 12640 Pruitt Court Grand Terrace, CA 92313 Page 18 PART F ASSESSMENT DIAGRAM An Assessment Diagram for the Assessment District has been submitted to the Clerk of the City in the format required under the provision of the Act. The enclosed is a facsimile of subject submittal and is included herein. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of San Bernardino, for the year when this Report was prepared, and are incorporated by reference herein and made part of this Report. Dated this day of a ,2011 d-4VL 14 Carlos Zamano Engineer of Work PRELIMINARY APPROVAL BY THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ON THE DAY OF ,2011. Brenda Mesa Clerk of the City of Grand Terrace State of California FINAL APPROVAL BY THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ON THE DAY OF . 2011. Brenda Mesa Clerk of the City of Grand Terrace State of California Page 19 SAN o o SBERN RD I NO p i Y C is °UR 1 A A N ;..I;;.. � Y � SlOIr 15 PART MENT DISTRICT 2 of STREETS � TRICT 89 ^ 1 1RAC i NO r 3 6� �NNAYS CO 13 4 ' r TERRA E p�O�SCAP l N'C A.vO l 1 CHT �•• '''�.,,,1„"l'' f r� ----�r>��„ � ° ..... -� ,"' "• _ ACT OF n .... N ' a • `o •I 1 0 i:','i� \ 7 ° „1^ r �� = o o f, n R ,K, _ M1 O ^•o _ ^ _ °, o oth.�*.17 O D•al la N it v 0 0 0 0 n,rl' �' 0' :'�•• Y V ,I,.1' .,r'"•. ay' 1 JJ,• il.r 1,�. •I.I, �( fig'? II0•II(11 cE r, c '1 PINGS _1 �.,.V ;�A v. » u ». ~•nrss•f �•�.r. '_.•-err»rl 0t�5 I�01.1[ b N Q < ,It ,Y �� C I^ •II"� �'1 ..., N 0.111� 1 - �` l PRO,`ECT In.w T y SITL K •'1 r• �0 J p o i � H S I �1' 12 A !% W (� ` I ` D j7•j0' n n o ' / N a f>Zh•�ol.lo t i.Y/ ��—L.' ('' ° i 1 1 U 0' H _ ° a _ _ r 0.17 A(. Y ' I ¢ ( o ° I� VIC�I/flTl' 4A0 I •p „ < 011i-)01•(O .. I 7 1 0,17'.70,• °. •1,/. O.il Ac •u r•. 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I r� •'� >•a 13,17<CR£S I .� CITY CIER a1.• "� APN z75-251_76 - rr.x—_ ->E •ECcaIOED`71.1r�Nf OFFICE Nr fNE NEA rfEalo(a( ` - I IF aF sr.Et: /1'L1cd owr aF.2, swl.1111 Eao ,r of ztRCCrs •�?o __ •a ii -- -a.a( 1 I [i "((a^••a•tJe aa�rn LANOSCAPE AREA ��rs«rf VAS LEIIEO tr rtE clfr Ca-CIL o.flt LOTS_rlECEs A•o fMC{(S of LA•0 S•-t ON rNlr N•f10E0 ASs(S9K/I of s 10 Ja'f1roE0 ASSCSSfErr VAs lErfED a t.e11-s.oAr wr if�• SAro AlEROED A.SSCstrEAf of•"' •taw fr( �_�� ll RECOROEA IR fF[oFf'fr q eta rti fA11J1t TEROEwT of STR EEIt OF Selo GI Ir d Taf 4r 0• fff�1 rf0. REFEAC.CE IS r+„E (a FIX Glwr artf CEfz Fa�R a Iw r«E Of/IGE Of, 114 lYCEL OF LAro s>a1r o rE EZAGf AaoLwI of E•a( �i«�7r�ASSE�r(Kr ol•u.vt. Sit/.�Ir Cffr qf." I� 1• ^ter- ..__ _—.._- ---. _.--- . - ! w>t Ed LZ 1 Z - - o.u.c. W _< O c•cf ia.23-5i•Z LEGEND SCALE 1 • .- fat Ya4 ({.c.<.v ^�I ro o.K••w f/-32 = /i)c?•/d/.7., 'at 1 IT a ----• .txlvw. J•n � n ai ••'T ...._.... •<p uu.r x.r.uov-o• I FRANKLIN STREET wzaK" ! W JS ORIGINAL ASSCTSNI«T I O ^a.(rAc.~= � OITTA<T.,.I 60..a— 1 0 =/%>3f3/- /f7d•%/-2/_/f.��/-ZZ- /iJJ•ra/-Z� - / e ro« •`:.� ! _ z .e,tr nm n.eo «1r u/• 9 /i�(,�ei/,y //i8/ei/7 Ir73-ad/-Ic( _ 0.1 I 3 z r alto sT ._._--__-�—• -;t azo.c. _ ^Aan.c.�z o.n.c - 0.20c. - i I VICINITY--AtAP Ti PICO _STREET - - FIEEDHEouE� �9/ is 1 , I • - - JOOK lqq AT PAG OF --- •-----•-•- - SAR 9ERN_PL(:1^/_CGUNTY FrU'_c FEE KICAK 6 ASSOCIATES CITY OF SRAND TERRACE ASSESSr1ENT DIACRArI CIVIL ENCINEERS ANNEXATION NO. 1 TO ASSESStTENT DfSTRICT 89-1 sari 22.365 BA310R ROAD. SUITE IID I CRANO r�.i AACE- CALIFORNIA 92324 (714) e25-Je25 LANOSC•APJNC AND LIGHTING ACT OF 1972 COUNTr OF SAN BEFNAROf Ro. SfA7E OF CAL IFORN iA Page 21 CALIFORNIA AGENDA REPORT MEETING DATE: May 24,.2011 Council Item ( X ) CRA Item ( ) TITLE: Selection Process for City Attorney Services Request for Proposal PRESENTED BY: Betsy M. Adams, City Manager RECOMMENDATION: Provide direction-to staff on the selection process for the City Attorney Services Request for Proposal. BACKGROUND: On May 10, 2011, the City Council approved a proposed Request for Proposal (RFP,) for City Attorney Services and directed the City Manager to issue the RFP the following day.. The only change. Council made on the proposed RFP was to authorize the City Manager to extend the schedule slightly to allow adequate time for the selection process. The RFP was issued on May 11 with responses due by 2:00 .p.m. on Wednesday, June 8, 2011, extending the due date .one week based upon Council direction. The schedule for Council interviews with selected RFP responders was changed from June 7, 2011 to "the City of Grand Terrace may invite one or more proposers to be interviewed by the City Council in June -2011 (date and time to be determined)." As of May 17, the RFP had been sent to thirteen (13) law firms or individuals. The staff report for the City- Attorney Services RFP. also noted that the Council would define the interview process for City Attorney,services at the Council Meeting on May 28. DISCUSSION: The City Attorney Services RFP was prepared to allow the Council flexibility in the selection process. By answering a series of questions below, the Council will have determined the framework for the selection process. 1. Does the Council want to review all. responses to the City Attorney Services RFP or only those which are determined to be most qualified? 2. If the Council chooses.to review only the most qualified responses, does the Council want to establish a subcommittee to review all. responses or delegate this review to the City Manager? .3. if the Council chooses to establish a subcommittee, who will be included (e.g. two members of Council, City Manager, any advisors selected by Council, etc.)? COUNCIL AGENDA ITEM.NO.8D RFP for City-Attorney Services May 10, 201.1 Page 2 After the Council has reviewed either all the responses or the most qualified responses, the next step would be to invite one or more law firms to interview with the Council. As the hiring of a City Attorney is an employee selection, as a specific individual .of a law firm would be designated to serve as the City Attorney, the Council may hold: the interviews in Closed Session. In order to allow enough time .for the interview(s), the Council needs.to answer the following question:: 1. Does the Council wish to .set either a minimum or maximum number of law firms to be interviewed? The interview process could include two components, the invited firm(s) making a .presentation followed by questions from the Council. The time allowed for each component would be determined after the number of firms to be interviewed is known but will likely be 20 to 30 minutes each. Staff would provide .the Council with potential interview questions, including questions-suggested by Council. After the Council has completed the interview process, a law firm will be selected and the City Manager directed to bring the-agreement forward for approval at a.public meeting. FISCAL IMPACT: There is no fiscal impact for determining the selection process for the City Attorney Services RP.F. The proposed Fiscal Year (FY) 2011-12 operating budget includes $120,000 for City Attorney services funded equally .between the General Fund and the Community Redevelopment Agency, the same funding level as FY 2010-11. The Council has the discretion to adjust this budget after the finalist for the City Attorney Services RPF has been determined. Respectfully submitted: Betsy Adam , City Manager ATTACHMENTS: None. CALIFORNIA AGENDA REPORT MEETING DATE: May 24, 2011 Council Item ( X ) CRA Item ( ) TITLE: Special Assessments and Liens for Delinquent Non-owner Occupied/Rental Property Program Fees and Fines PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: 1. Adopt the attached Resolution confirming delinquent Non-owner Occupied/Rental Property Program fees and fines for the 2010 calendar year. 2. Authorize special assessments against the parcels listed in Exhibit "A" of the Resolution. BACKGROUND: On January 12, 2006 the Council adopted the Non-owner Occupied/Rental Property Program, and implementation of the program began on January 1, 2007. There are currently 467 rental properties (997 units) inspected annually. The City's Municipal Code Chapter 5.80, Non-owner Occupied/Rental Property Program, requires payment of annual inspection fees by owners of rental properties and authorizes reinspection fees and fines for non-compliance of noted violations. Annual fees are established as follows: Single-family home: $95.00 Per unit (1-199 apartments) $48.00 Per unit (200+ apartments) $36.00 Reinspection $47.00 (for not correcting a violation by compliance date) Municipal Code Sections 5.80.100 and 5.80.120 authorize recovery of fees through municipal tax lien procedures. DISCUSSION: There are seven property owners who have not paid the Program fees and fines for calendar year 2010, and staff is now requesting consideration of special assessments for those properties. Each property owner has received notices of annual fees and fines due and potential city actions. On May 4, 2011, notices were sent by certified mail informing each owner of the May 24, 2011 Council hearing for special assessment and liens. The purpose of the hearing is to allow the affected owners an opportunity to address the Council regarding the special assessments. COUNCIL AGENDA ITEM NO.(9r The owners of the following properties have failed to pay accrued fees, penalties, and/or fines: Assessor's property Address Amount Owing/Purpose Parcel Number 0276-263-07 11822 Arliss Court $142.50 Annual inspection fee plus interest 1167-371-25 22371 Pico Street $142.50 Annual inspection fee plus interest 1178-201-17 12751 Wilmac Avenue $142.50 Annual inspection fee plus interest 1178-221-39 22558 Robin Way $142.50 Annual inspection fee plus interest 0276-191-12 22664 Minona Drive $142.50 Annual inspection fee plus interest 1167-341-29 12405 Willet Avenue $142.50 Annual inspection fee plus interest 1167-361-45 12625 Reed Avenue $189.50 Annual fee, interest, reinspection fee Staff recommends that Special Assessments totaling $1,044.50 be recorded as liens against the listed parcels and placed on the 2011-2012 tax rolls. The fees will then be collected at the same time as regular property taxes. FISCAL IMPACT: The assessments will be turned over to the Tax Collector for collection in September 2011, and would be added to the succeeding,property tax billing. When collected the revenue would be appropriated to the General Fund. Pre ared by, Jeanne Ruvolo Code Compliance Officer Respectfully submitted, Toyc4 Powers Community and Economic Development irector Concurred By: Bernie Simon, Finance Director Manager Approval: Betsy- . Ada Ins, City Manager ATTACHMENT: Proposed Resolution adopting delinquent fees and fines S l PROPOSED RESOLUTION ADOPTING DELINQUENT FEES AND FINES 1 _ RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ADOPTING A REPORT OF DELINQUENT NON- OWNER OCCUPIED RENTAL PROGRAM PROPERTIES FEES AND FINES AND DIRECTING THAT SUCH DELINQUENT FEES AND FINES BE COLLECTED ON THE TAX ROLL AND BE IMPOSED AS A LIEN UPON PROPERTY WITHIN THE CITY OF GRAND TERRACE WHEREAS, pursuant to Chapter 5.80 of the Grand Terrace Municipal Code property owners with buildings subject to inspection shall pay a fee in the amount set forth in the Grand Terrace Municipal Code Chapter 4.108 establishing fees and charges for various municipal services. WHEREAS, pursuant to Chapter 5.80 of the Grand Terrace Municipal Code property owners who fail to pay the required fee the city will recover the amount of the fee plus accrued interest and penalties utilizing any remedies provided by law including nuisance abatement or municipal tax lien procedures established by ordinance or state law. WHEREAS, pursuant to Chapter 5.80 of the Grand Terrace Municipal Code property owners who fail to pay inspection fees will result in the city's pursuit of all legal remedies available to recover amount of the fine, penalties, and associated costs. WHEREAS, certain property owners, as shown on the last available assessment roll, have failed to take action to pay the outstanding delinquent balance owed to the City. WHEREAS, the City Council of the City of Grand Terrace held a properly noticed public hearing on May 24, 2011; and WHEREAS, the City Council, having considered the delinquent accounts, together with any objections and protests by property owners, desires to declare the delinquent accounts as special assessments and cause such accounts to be recorded as a lien against the properties. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grand Terrace, as follows: Section 1: The delinquent Non-owner Occupied/Rental Property Program fees and fines (Resolution with attached Exhibit "A") filed with the City Clerk contains a description of each parcel of real property and the amount of the delinquent Non-owner Occupied/Rental Property Program fees and fines for the fiscal year 2011-2012 and Resolution with attached Exhibit "A" is therefore approved and adopted. Section 2: The Resolution shall be forwarded to the San Bernardino County Auditor Controller, who will record and enter the assessments on the property tax roll against the properties that remain delinquent as of May 24, 2011, and shall be collected on the tax roll for fiscal year 2011-2012 in the same manner, by the same person, at the same time, together with and not separately from, the general taxes. RESOLUTION NO. 11- Page 2 Section 3: The Finance Director shall file with the County Auditor Controller a statement endorsed thereon over the signature of the City Clerk that it has been fully adopted by the City Council, together with a certified copy of this Resolution. PASSED, APPROVED AND ADOPTED this 24th day of May 2011. ATTEST: City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace and of the City Council and of the City Council thereof I, Brenda Mesa, City Clerk of the City of Grand Terrace, California, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 24th of May 2011 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Approved as to form: John R. Harper, Brenda Mesa, City Attorney City Clerk 1 EXHIBIT "A" RESOLUTION NO. Delinquent Non-owner Occupied/Rental Property Program Fees and Fines: Property Address Owner Assessor's Parcel Amount Number Owing 11822 Arliss Court Philip Hanna 0276-263-07-0000 $ 142.50 22371 Pico Street Philip Hanna 1167-371-25-0000 $ 142.50 12751 Wilmac Avenue Philip Hanna 1178-201-17-0000 $ 142.50 22558 Robin Way Philip Hanna 1178-221-39-0000 $ 142.50 22664 Minona Drive Anthony Grano 0276-191-12-0000 $ 142.50 12405 Willet Avenue Larry Palacios 1167-341-29-0000 $ 142.50 12626 Reed Avenue Jerome Walters 1167-361-45-0000 $ 189.50 TOTAL 7 $ 1,044.50 I I