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04/26/2011 ., PENDING CRA APPROVAL CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY MINUTES REGULAR MEETING -'APRIL 26,2011 m A regular meeting of the Community Redevelopment Agency, City of Grand Terrace, was held in the Council Chambers,Grand Terrace Civic Center,22795 Barton Road,Grand Terrace,California, on April 26, 2011 at 6:00 p.m. PRESENT: Walt Stanckiewitz, Chairman Lee Ann Garcia, Vice-Chairman Darcy McNaboe, Agency Member Bernardo Sandoval, Agency Member Gene Hays, Agency Member Betsy M. Adams, City Manager Brenda Mesa, City Clerk Bernie Simon, Finance Director Joyce Powers, Community& Economic Development Director Richard Shields, Building & Safety Director John Harper, City Attorney Sgt. Ed Finneran, San Bernardino County Sheriff's Department Rick'McClintock, San Bernardino County Fire Department ABSENT: None APPROVAL OF 04-12-2011 MINUTES CRA-2011-24 MOTION BY AGENCY MEMBER MCNABOE, SECOND BY VICE- CHAIRMAN GARCIA, CARRIED 5-0,to approve the April 12,2011 Community Redevelopment Agency Minutes. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT FOR AGENCY SPECIAL COUNSEL CRA-2011-25 MOTION BY VICE-CHAIRMAN GARCIA, SECOND BY AGENCY MEMBER HAYS, CARRIED 5-0,to approve a Professional Services Agreement between the Agency and Straddling Yocca Carlson&Rauth, and appropriate$22,500.00 for the legal services related to Agency Financing. CRA-2011-26 MOTION BY AGENCY MEMBER MCNABOE, SECOND BY AGENCY MEMBER HAYS,CARRIED 5-0,to waive the rating requirement for the insurance pool coverage in the alnount of one million dollars. RESOLUTION ESTABLISHING A LOW AND MODERATE INCOME HOUSING CRA AGENDA ITEM NO. i Community Redevelopment Agency Minutes April 26,2011 Page 2 FUND LOAN FOR THE SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND PAYMENT FOR MAY 2011 CRA-2011-27 MOTION BY AGENCY MEMBER MCNABOE,SECOND BY VICE-CHAIRMAN GARCIA, CARRIED 5-0,to Rescind Resolution No. 2011-02 and Establish a loan from the Agency's Low and Moderate Income Housing Fund("LMIHF")to make the required May 2011 payment to the State of California Supplemental Educational Revenue Augmentation Fund(SERAF)and Authorize funding of loan from available undesignated and designated CRA Low Mod Fund Balance and to notify the San Bernardino County Auditor Controller. CRA-2011-27 MOTION BY VICE-CHAIRMAN GARCIA, SECOND BY COUNCILMEMBER HAYS, CARRIED 5-0, to add a Closed Session Item to the Community Redevelopment Agency regarding Potential Litigation. Chairman Stanckiewitz announced that the Agency met in Closed Session regarding Potential Litigation and there was no reportable action taken. Chairman Stanckiewitz adjourned the Community Redevelopment Agency Meeting at 7:05 p.m., until the next CRALCity Council Meeting that is scheduled to be held on Tuesday,May 10,2011 at 6:00 p.m. SECRETARY of the Community Redevelopment Agency of the City of Grand Terrace CHAIRMAN of the Community Redevelopment Agency of the City of Grand Terrace 1, CALIFORNIA AGENDA REPORT MEETING DATE: April 26, 2011 Council Item ( ) CRA Item. ( X ) TITLE: Approval of a Professional Services Agreement for Agency Special Counsel PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: Approve the attached Professional Services Agreement between the Agency and Straddling Yocca Carlson & Rauth, and appropriate $22,500.00 for the legal services related to Agency financing. BACKGROUND: The Agency is in the process of evaluating options to fund capital projects and programs over the several years. On April 12, 2011, the Agency selected Stradling Yocca Carlson and Rauth (SYCR) to provide legal services for evaluation of the Agency's financing options, which would an include an in-depth review of all existing documents that affect the Agency's fiscal position. The Agency Board also directed staff to return with a complete Professional Services Agreement, including the Scope of Services to be provided. DISCUSSION: The Agreement is attached for the Agency's review and includes two exhibits: 1. Exhibit A, Scope of Services, Project Schedule, and Fees; and, 2. Exhibit B, Personnel, that lists the two primary attorneys. The Scope of Services is written in two parts. Part 1 is a description of the tasks necessary to present financing options to the Agency, either through a public offering, private placement, or some combination of the two. Services under Part 1 are hourly costs, as requested, not to exceed $22,500.00, and will be completed within 30 days. SYCR and staff anticipate presenting this report to the Board in June. Part 2 describes the next level of work, which would be based on the Agency's direction, and the fees for each option. If the Agency determines to issue bonds, the CRA AGENDA ITEM NO. legal costs can be paid from the bonds proceeds. If the bond financing is not completed for any reason, the Agency will have no liability for any fees incurred during the bonding process. An hourly rate would apply for other services, between $250.00 and $325.00 per hour. The hourly fee for the two primary attorneys, Mark J. Hbuesch and David R. McEwen, is $325.00 per hour. The lower rates apply to other members of the firm that may assist them with tasks such as research and paralegal services. Section 11.1 of the Agreement states that SYCR will maintain Errors and Omissions Insurance, in an amount not less than $25 million. SYCR will provide proof that the Agency has been added to their policy before the Agreement is signed by the Agency's Executive Director. The Agreement has been signed by Mr. Huebsch, one of the firm's shareholders. The Agreement would be in effect until June 30, 2012, unless terminated earlier by the Agency. The Agency may determine to postpone or abandon the project without penalty as described in Section 23 of the Agreement. Staff recommends that the Agency approve the Agreement and appropriate $22,500.00 from the Agency's undesignated non-housing funds. If additional funds are needed for legal services not related to a bond issue, staff would return to the Agency for approval. FISCAL IMPACT: Staff is requesting a new appropriation of $22,500.00 from the Agency's available, undesignated non-housing Fund Balance Reserve, to the Agency's Professional Services Account, 32-200-255. Funds for these services are not included in the Agency's Fiscal Year 2010-11 budget. The Finance Director has confirmed that sufficient undesignated funds are available for these services. Respectfully submitted: ljmitPt,� J ycePowers Community and Economic Development Director Manager Approval: Betsy Ada s, Agency Executive Director and City Manager ATTACHMENT: Professional Consultant Services Agreement between the Agency and SYCR PROFESSIONAL CONSULTANT SERVICES AGREEMENT Stradling Yocca Carlson &Rauth Redevelopment Special Counsel Services THIS PROFESSIONAL CONSULTANT SERVICES AGREEMENT ("Agreement")'is made and entered into this 26`h day of April, 2011, ("Effective Date") by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE ("Agency"), a public entity, and STRADLING YOCCA CARLSON & RAUTH, a Professional Corporation ("Consultant"). 1. Scope of Services. Agency agrees to retain and does hereby retain Consultant and Consultant agrees to provide the services more particularly described in Exhibit "A", "Scope of Services, Project Schedule, and Fees", attached hereto and incorporated herein by reference. The activities referenced in Exhibit"A" are also referred to herein as the"Project." 2. Term. This Agreement shall be effective on the date first written above unless otherwise provided in Exhibit "A" and the Agreement shall remain in effect until June 30, 2012, unless otherwise terminated pursuant to the provisions herein. 3. Compensation/Payment Consultant shall perform the Services under Part 1 of Exhibit A to this Agreement for the total sum not to exceed Twenty-Two Thousand Five Hundred Dollars ($22,500.00) payable in accordance with the terms set forth in Exhibit "A"; remaining services, if any, as directed by the Agency, will be compensated in the manner set forth in Part 2 of Exhibit A to this Agreement. Said payment shall be made in accordance with Agency's usual accounting procedures upon receipt and approval of an itemized invoice setting forth the services performed. The invoices shall be delivered to Agency at the address set forth in Section 4 hereof. 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 Agency: To Consultant: Community Redevelopment Agency Stradling Yocca Carlson &Rauth Attn: Joyce Powers Attn: Mark J. Huebsch 22795 Barton Road 660 Newport Center Drive, Suite 1600 Grand Terrace, California 92313 Newport Beach, CA 92660-6422 5. Prevailing Wage. If applicable, the Consultant 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. Page 1 of 12 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. , 6.1 Contract Administration. A designee of the Agency will be appointed to administer this Agreement on behalf of the Agency and shall be referred to herein as Contract Administrator. 7. Standard of Performance. While performing the Services, Consultant shall exercise the reasonable professional care and skill customarily exercised by reputable members of Consultant's profession practicing in the Metropolitan Southern California Area, and shall use reasonable diligence and best judgment while exercising its professional skill and expertise. 8. Personnel. Consultant shall furnish all personnel necessary to perform the Services and shall be responsible for their performance and compensation. Consultant 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 Agency approval. 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 a writing satisfactory to the parties. Consultant shall not subcontract any portion of the work required by this Agreement without prior written approval by the responsible Agency'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. Consultant acknowledges that any transfer of rights may require Agency Executive Director and/or City Council approval. 10. Independent Contractor. In the performance of this Agreement, Consultant, and Consultant's employees, subcontractors and agents, shall act in an independent capacity as independent contractors, and not as officers or employees of the City of Grand Terrace. Consultant acknowledges and agrees that Agency has no obligation to pay or withhold state or federal taxes or to provide workers' compensation or unemployment insurance to Consultant, or to Consultant's employees, subcontractors and agents. Consultant, as an independent contractor, shall be responsible for any and all taxes that apply to Consultant as an employer. 11. Indemnification. Page 2 of 12 11.1 Indemnity. Consultant agrees to defend, indemnify and hold the Agency, its officers, agents and employees harmless from any and all claims which arise from or are directly connected with the Consultant's negligence or failure to perform the work or other obligations under this Agreement, and all expenses of investigating and defending against same; provided, however, that for any claim based upon the alleged errors or omissions.of Consultant related to the rendering of or the failure to render professional services hereunder this duty to defend, indemnify, and hold harmless shall be limited to not to exceed the amount of Consultant's errors and omissions insurance as required by this Agreement. Moreover, no indemnity obligation shall arise for liabilities arising from the sole negligence or willful misconduct of the Agency and City, its officers, agents, or employees. Consultant agrees to maintain errors and omissions insurance in an amount not less than Twenty-Five Million Dollars ($25,000,000) per claim period throughout the,term of this Agreement. 11.2 Attorney's Fees. The parties expressly agree that any payment, attorneys' fees, costs or expense that the Agency incurs or makes to or on behalf of an injured employee under the Agency'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 Agency's execution of this Agreement, Consultant 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 Agency's Risk Manager or Agency 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 Consultant's indemnification obligations under Section 11 hereof. 12.1.2 Ratings. Any insurance policy or coverage provided by Consultant 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 B+ or higher 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 Agency by certified or registered mail, postage prepaid. 12.1.4 Adequacy. The Agency, its officers, employees and agents make no representation that the types or limits of insurance specified to be carried by Consultant pursuant to this Agreement are adequate to protect Consultant. If Consultant believes that any required Page 3 of 12 insurance coverage is inadequate, Consultant will obtain such additional insurance coverage as Consultant deems adequate, at Consultant's sole expense. 12.2 Workers' Compensation Insurance: By executing this Agreement, Consultant certifies that Consultant 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. Consultant shall carry the insurance or provide for self-insurance required by California law to protect said Consultant from claims under the Workers' Compensation Act. Prior to Agency's execution of this Agreement, Consultant shall file with Agency either (1) a certificate of insurance showing that such insurance is in effect, or that Consultant is self-insured for such coverage, or (2) a certified statement that Consultant has no employees, and acknowledging that if Consultant does employ any person, the necessary certificate of insurance will immediately be filed with Agency. Any certificate filed with Agency shall provide that Agency will be given ten (10) days prior written notice before modification or cancellation thereof. 12.3 Commercial General Liability and Automobile Insurance. Prior to Agency's execution of this Agreement, Consultant shall obtain, and shall thereafter maintain during the term of this Agreement, commercial general liability insurance and automobile liability insurance as required to insure Consultant 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 Consultant. The Agency, and its officers, employees and agents, shall be named as additional insureds under the Consultant's insurance policies. 12.3.1 Consultant'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 Consultant's liability, personal injury liability, and contractual liability) in an amount not less,than $1,000,000 per occurrence and a general aggregate limit in the amount of not less than $2,000,000. 12.3.2 Consultant's automobile liability policy shall cover both bodily injury and property damage in an amount not less than $500,000 per occurrence and an aggregate limit of not less than $1,000,000, All of Consultant's automobile and/or commercial general liability insurance policies shall cover all vehicles used in connection with Consultant's performance of this Agreement, which-vehicles shall include, but are not limited to, Consultant owned vehicles, Consultant leased vehicles, Consultant's employee vehicles, non-Consultant owned vehicles and hired vehicles. 12.3.3 Prior to Agency'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 the Agency and shall include the Agency and its officers, employees and agents, as Page 4 of 12 additional insureds. Said policies shall be in the usual form of commercial general and automobile liability insurance policies,but shall include the following provisions: It is agreed that the Community Redevelopment Agency and its officers, employees and agents, are added as additional insureds under this policy, solely for work done by and on behalf of the named insured for the Community Redevelopment Agency. 12.4 Errors and Omissions Insurance. Prior to Agency's execution of this Agreement, Consultant 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 to protect the Agency from claims resulting from the Consultant's activities. 12.5 Subcontractors' Insurance. Consultant shall require all of its subcontractors to carry insurance, in an amount sufficient to cover the risk of injury, damage or loss, which 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 Agency's request, Consultant shall provide the Agency with satisfactory evidence that Subcontractors have obtained insurance policies and coverages required by this section. 13. Business Tax. Consultant understands that the Services performed under this Agreement constitutes doing business in the City of Grand Terrace, and Consultant agrees that Consultant 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. Agency's Right to Employ Other Consultants. Agency reserves the right to employ other Consultants in connection with the Project. 16. Accounting Records. Consultant shall maintain complete and accurate records with respect to costs incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of Agency during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant 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 Consultant in connection with the performance of this Agreement shall be held confidential by Consultant, except as otherwise directed by Agency's Page 5 of 12 Contract Administrator. Nothing furnished to Consultant which is otherwise known to the Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use Agency's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production, website, or other similar medium without the prior written consent of the Agency. 18. , Ownership of Documents. All reports, maps, drawings and other contract deliverables prepared under this Agreement by Consultant shall be and remain the property of Agency upon Agency's compensation to Consultant for its services as herein provided. Consultant shall not release to others information furnished by Agency without prior express written approval of Agency. 19. Conflict of Interest. Consultant, 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 Project affected by the above-described Services. Consultant further warrants that neither Consultant, nor the individuals listed in Exhibit`B"have any real property, business interests or income interests that will be affected by this project or, alternatively, that Consultant will file with the Agency an affidavit disclosing any such interest. 20. Solicitation. Consultant warrants that Consultant has not employed or retained any person or Agency 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, Agency shall have the right to terminate this Agreement without liability and pay Consultant only for the value of work Consultant has actually performed, or, in its sole discretion, to deduct from the Agreement price or otherwise recover from Consultant the full amount of such commission, percentage, 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. Consultant shall keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Consultant, or in any way affect the performance of services by Consultant pursuant to this Agreement. Consultant 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 Consultant and Agency. 23. Termination. Agency, by notifying Consultant in writing, shall have the right to terminate any or all of Consultant's services and work covered by this Agreement at any time. In the event of such termination, Consultant may submit Consultant's final written statement of the amount of Consultant's services as of the date of such termination based upon the ratio that the Page 6 of 12 work completed bears to the total work required to make the report complete, subject to the Agency's rights under Sections 15 and 24 hereof. In ascertaining the work actually rendered through the termination date, Agency shall consider completed work, work in progress and complete and incomplete reports and other documents only after delivered to Agency. 23.1 Other than as stated below, Agency shall give Consultant thirty (30) days prior written notice prior to termination. 23.2 Agency may terminate this Agreement upon fifteen (15) days written notice to Consultant, in the event: 23.2.1 Consultant substantially fails to perform or materially breaches the Agreement; or 23.2.2 Agency decides to abandon or postpone the Project. 24. Offsets. Consultant acknowledges and agrees that with respect to any business tax or penalties thereon, utility charges, invoiced fee or other debt which Consultant owes or may owe to the Agency, Agency reserves the right to withhold and offset said amounts from payments or refunds or reimbursements owed by Agency to Consultant. Notice of such withholding and offset shall promptly be given to Consultant by Agency in writing. In the event of a dispute as to the amount owed or whether such amount is owed to the Agency, Agency 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 Agency and its successors and assigns, and upon Consultant and its permitted successors and assigns, and shall not be assigned by Consultant, 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 Consultant's performance of this Agreement, Consultant 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 Page 7 of 12 procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Further, Consultant 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 Consultant each represent and warrant that they have the legal power, right and actual authority to bind Consultant 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, and neither party is relying on, any representation or warranty outside those expressly set forth in this Agreement. 31,. Interpretation. Agency and Consultant 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. Reference 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" 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, Project Schedule, and Fees Exhibit `B" - Personnel Page 8 of 12 IN WITNESS WHEREOF Agency and Consultant have caused this Agreement to be duly executed the day and year first above written. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE, A Public Entity By: Betsy M.Adams Agency Executive Director and City Manager Attest: Agency Secretary/City Clerk Stradling Yocca Carlson&Rau a Pro ati By: Mark J. Huebsch Shareholder Page 9 of 12 EXHIBIT"A" SCOPE OF SERVICES, PROJECT SCHEDULE, AND FEES Part 1: 1. Review historical agreements and Redevelopment Plans that affect the Agency's ability to incur new debt; confer and consult with Agency staff and representative of RSG, the consulting firm retained by Agency in relation to evaluation of tax increment for Agency. Provide recommendations upon request from the Executive Director; such recommendations to be in writing if so requested by Executive Director. 2. Review all fiscal reports, prepared by RSG or other advisers designated by Agency, affecting the Agency's ability to incur new debt and provide recommendations upon request. 3. Upon consultation with Agency staff and RSG.(or other advisers designated by Agency), develop options for Agency borrowing and, upon request therefor,prepare a discussion of advantages and disadvantages of each option. Provide a recommendation that best meets the goals of the Agency in consultation with staff to be presented to the Agency Board for direction. 4. Items 1-3 will be completed within 30 days of receipt by Consultant of the documents listed in items 1-3, above, following the Agency's approval of the Professional Services Agreement. The hourly rate for the services referenced above will be within the range of$250-325 per hour(the latter for work performed by shareholders), not to exceed $22,500 (75 hours at$300 per hour). Part 2: 1. If, at its election, the Agency determines to issue.bonds, Consultant will: Pursue Agency issuance of bonds and complete the preparation of documents necessary for the issuance of such bonds, including the delivery of customary legal opinions, associated therewith. Fees for Consultant in connection with such services would be based upon the total principal amount of each issue of the bonds authorized and sold, computed in accordance with the following schedule: Page 10 of 12 Total Principal ' Amount ofIBonds Sold Fee $5,000,000 or less $35,000 plus .25 of I% of the excess over $1,000,000 $5,000,001 to $10,000,000 $45,000 plus .20 of I% of the amount over $5,000,000 $10,000,001 or more $55,000 plus .15 of I% of the amount over $10,000,000 In connection with preparation of an official statement or similar offering memorandum, Consultant would be paid an amount equal to 60% of the amount determined under the schedule set forth above, but not less than $35,000. The Agency is not, by executing this Agreement for Services, obligating itself to proceed with the issuance of bonds. If the Agency does elect, at its discretion, to proceed with the issuance of bonds, the proceedings with respect to the financing will be drafted so that the above scheduled fees under this Part 2 will be paid from the proceeds of the Bonds. In the event that the financing is not completed-for any reason, the Agency will have no liability for any fees incurred by our firm with respect to the financing as set forth in Part B. In addition to the above fees, Consultant would be reimbursed at closing for Consultant's estimated out of pocket expenses, as reviewed by Agency staff, including travel at the request of the Agency, telecommunications charges and document production and reproduction (at the usual rates charged by the firm), outside messenger service and similar items; provided that such out of pocket expenses would be subject to a not-to-exceed cap of$4,000; or, 2. Negotiate and prepare required documents to obtain alternative Agency financing for future project costs. Charges in connection with this Section 2 are to be based upon the rates set forth under item 4 of Part 1, above. The Agency reserves the right to evaluate this work and legal costs prior to directing that this work proceed; or, 3. Other combination of financing, only as directed by the Agency. Charges in connection with this Section 3 are to be based upon the rates set forth under item 4 of Part 1, above. Page 11 of 12 EXHIBIT `B" PERSONNEL David R. McEwen and Mark J. Huebsch, will be the primary attorneys providing the services. Each of Mark J. Huebsch and David R. McEwen is a shareholder with Consultant. If they utilize the services of other attorneys, the hourly rates will be within the range of hourly rates set forth in Part 1 of Exhibit"A". Consultant anticipates that a preponderance of the work performed by attorneys of Consultant under this Agreement will be performed by David R. McEwen and Mark J. Huebsch. If bonds are issued, the services of senior tax counsel of Consultant will also be utilized, along with customary assistance by paralegals under the direction of David R. McEwen and Mark J. Huebsch. Page 12 of 12 lop 1 CALIFORNIA AGENDA REPORT MEETING DATE: April 26, 2011 Council Item ( ) CRA Item ( X ) TITLE: City of Grand Terrace Redevelopment Agency Establishing Low and Moderate, Income Housing Fund Loan for Supplemental Educational Revenue Augmentation Fund May 2011 Payment PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION: 1) Rescind Resolution No. 2011-02 2) Establish a loan from the Agency's Low and Moderate Income Housing Fund ("LMIHF") to make the required May 2011 payment to the State of California Supplemental Educational Revenue Augmentation Fund (SERAF) 3)Authorize funding of loan from available undesignated and designated CRA Low Mod Fund Balance BACKGROUND: The State of California's 2009 Budget Legislation included a statewide taking of $2.05 billion in redevelopment funds: $1.7 billion in fiscal year 2009-10 and another $350 million in fiscal year 2010-11. The funds were to be deposited into a "Supplemental" Educational Revenue Augmentation Fund ("SERAF") to be distributed to schools to meet the State's Proposition 98 obligation to education. Redevelopment agencies were required to make the payment into their respective county SERAF accounts by May 10th of the applicable fiscal year. The City of Grand Terrace Redevelopment Agency ("Agency") made the required $2,179,087 on May 10, 2009. The required fiscal year 2010-11 .Agency SERAF payment is $448,636 and is due on May 10, 2010. According to the requirements of the California Community Redevelopment Law, Health and Safety Code Section 33000, et. seq. ("CRL"), the Agency can use any legally available funds to make the SERAF payment, including loaning funds from the LMIHF to make these payments. CRA AGENDA ITEM NO3 } DISCUSSION: On February 8, 2011, the Agency adopted Resolution No. 2011-02 which stated that the agency had sufficient non-housing CRA resources to make the SERAF to the County Auditor- Controller on May 10, 2011. Due to recent developments, the City's Finance Department has re-evaluated the availability of funds to make the upcoming May 10, 2011, SERAF payment. Based on analysis by Agency staff and the redevelopment consultant, the upcoming $448,636 SERAF payment may impair Agency cash flows into the upcoming fiscal year, as well as significantly affect the ability of the Agency to meet existing obligations as well as the potential financing for economic development projects enumerated in the Agency's implementation plan. Despite the California Redevelopment Association's continued belief that the SERAF payment violates State law, it is prudent to exercise the rights of the Agency to meet this payment with a five- year, interest-free loan from the LMIHF as permitted by the Law. Section 33690.5 (b) of the CRL provides that the Agency may use any funds that are legally available. CRL Section 33690.5 (c) provides that the Agency may borrow the amount required to make the fiscal year 2010-11 SERAF payment from the LMIHF. The LMIHF is the account into which 20 percent of the Agency's annual tax increment is required to be placed for the purpose of increasing, improving and preserving the community's supply of low and moderate income housing. CRL Section 33690(c) (2) further requires that the Agency must make a finding that there are insufficient other moneys to make the SERAF payment and that the LMIHF loan be repaid on or before June 30, 2016. It is important to note that this loan is not required to bear interest, but if the Agency does not repay the full balance of the loan by the June 30, 2016 date, the Agency must allocate an additional 5 percent of all tax increment revenue (above the already required 20 percent set-aside amount) after that date to the LMIHF. The Agency's LMIHF account has sufficient funds to make the SERAF payment. Given the fact that the Agency will not have the required non-housing funds to make the SERAF payment due to other obligations to be drawn on the fund during the coming months, and considering that the Agency's LMIHF has "legally available funds," staff recommends that the Agency authorize a loan from the LMIHF to make the fiscal year 2010-11 SERAF payment. Pursuant to the requirements of the CRL, the County Auditor's Office must be notified regarding the manner in which the Agency intends to fund the SERAF payment. As the Agency will now be making this payment via a loan from the LMIHF, it is advisable that the City Council direct staff to notify the County Auditor's Office of its intention to utilize loaned LMIHF revenues to make the fiscal year 2010-11 SERAF payment. FISCAL IMPACT: If the loan from the Agency's Low and Moderate Income Housing Fund (LMIHF) is approved, then the payment will be made from the LMIHF, which has a current undesignated and designated fund balance of$1.3 million; after the SERAF payment of $448,636, the LMIHF undesignated fund balance would be reduced to zero and the available designated fund balance would be reduced to approximately $850,000. Respectfully submitted: Bernie Simon, Finance Director Concurred By: l� J y Powers, Community and Economic Development Director Manager Approval: Betsy . Adam , Executive Director ATTACHMENT: Resolution 2011-xx . i J ATTACHMENT RESOLUTION 2011-xx RESOLUTION NO. CRA-2011- A RESOLUTION OF THE GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING A LOAN FROM THE AGENCY'S LOW AND MODERATE INCOME HOUSING FUND TO MAKE THE REQUIRED PAYMENT TO THE COUNTY SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND FOR FISCAL YEAR 2010-2011 WHEREAS, Section 33690.5 of the California Community Redevelopment Law, Health and Safety Code Section 33000, et. seq. ("CRL"), requires all redevelopment agencies to make certain payments to the corresponding county Supplemental Educational Revenue Augmentation Fund("SERAF") in fiscal year 2010-2011; and WHEREAS, the Agency's SERAF payment for fiscal year 2010-11 of $448,211 is required to be made by May 10, 2011; and WHEREAS, the Agency lacks the sufficient non-housing funds needed to make the full fiscal year 2010-11 SERAF payment; and WHEREAS, Section 33690.5(c) of the CRL provides that an agency may use any funds that are legally available and not legally obligated for other uses in the event that there are insufficient other moneys to make the SERAF payment; and WHEREAS, CRL Section 33690(c)(1) allows an agency to borrow funds necessary from the Agency's Low and Moderate Income Housing Fund for that fiscal year in order to make the full SERAF payment; and WHEREAS, pursuant to CRL Section 33690(c)(2), an agency shall make a finding that there are insufficient other moneys to make the fiscal year 2010-11 SERAF payment in order to borrow funds from the an agency's low and moderate income housing fund. NOW, THEREFORE, THE , GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Agency hereby rescinds Resolution 2011-02. SECTION 2. The Agency hereby finds that it does not have sufficient unencumbered non-housing funds to make the required SERAF payment for fiscal year 2010-2011. The revenue to be received by the Agency in fiscal year 2010-2011 is required for the payment of Agency debt service, Agency administration and existing programs and projects and is not available to make the SERAF Payment. This finding is supported by the information and documents provided by City staff to the Board of Directors. J Page 2 of 2 SECTION 3. The Agency hereby authorizes a loan of$448,211 ("LMIHF Loan") from the Low and Moderate Income Housing Fund to the Agency for the sole purpose of making the second SERAF payment for fiscal year 2010-2011. The LMIHF Loan shall bear no interest, and the Agency shall repay the LMIHF Loan on or before June 30, 2016. The LMIHF Loan shall not be made until such time that the Agency is required to pay the SERAF Payment into the San Bernardino County SERAF. SECTION 4. In accordance with CRL Section 33690.5(d), the Agency directs the City Manager, on behalf-of the City of Grand Terrace, to notify the San Bernardino County Auditor- Controller that the fiscal year 2010-11 SERAF payment will be fully funded by a loan from the Agency's Low and Moderate Income Housing Fund. PASSED,APPROVED AND ADOPTED this 26t'day of April, 2011. Chairman of the Community Redevelopment Agency 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. CRA-2011- was introduced and adopted at a regular meeting of the Grand Terrace Community Redevelopment Agency held on the 26th day of April, 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Brenda Mesa, City Clerk Approved as to form: City Attorney J CALI'FORNIA AGENDA REPORT MEETING DATE: April 26, 2011 Council Item (X) CRA Item ( ) TITLE: Check Register No. 04-26-2011 PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION: Approve BACKGROUND: The Check Register for April 26, 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 $247,966.18 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 $73,454.44 and are summarized below. Some of the non-routine items include: 66641 U.S. Postal Postage for Meter $3,000.00 Service (Neopost Postage On-Call) 66637 Scholastic Book C. Care Book Fair Fundraiser $1,514.99 Fairs 66672 Ritron Wireless Battery Chargers for EOC HT Radios $1,393.03 Solutions, Inc. 66684 Urban Futures Inc Continuing.Disclosure Report—'04 $1,750.00 Refunding Tax Allocation Bonds COUNCIL AGENDA ITEM NO. � Some the larger items include: 66646 City of Colton January Wastewater Treatment $99,743.29 66650 D.J.D. Group, Inc. Senior Comm. Kitchen Remodel $43,470.79 Project Payment# 4 Payroll costs processed for period ending April 1, 2011: Date Period Payroll and payroll costs 04/01/11 Biweekly $73,454.44 FISCAL IMPACT: All disbursements are made in accordance with the adopted budget for FY 2010-11. Respectfully submitted, Bernie Simon Finance Director Manager Approval: Betsy . Ad ms City Manager ATTACHMENTS: Check Register—April 26, 2011 vchlist Voucher List Page: 1 04/19/2011 4:07:59PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66628 4/11/2011 006720 SO.CA.EDISON COMPANY March 2011 March Energy Usage 10-805-238-000-000 653.50 10-190-238-000-000 2,243.77 10-450-238-000-000 1,384.96 16-510-238-000-000 527.63 10-440-238-000-000 661.98 10-175-238-000-000 78.20 10-172-238-000-000 78.20 Total : 5,628.24 66629 4/11/2011 005702 PUBLIC EMPLOYEES' RETIREMENT PRend 3-18-11 Contributions for PRend 3-18-11 10-022-62-00 16,818.05 Total : 16,818.05 66630 4/13/2011 011110 TIME WARNER CABLE Apr 844840...72,APR/MAY CABLE& INTERNET SERVICE-SR CNTF 10-805-238-000-000 121.18 Total : 121.18 66631 4/13/2011 005702 PUBLIC EMPLOYEES' RETIREMENT PRend 4-1-11 Contributions for PRend 4-1-11 10-022-62-00 16,818.04 Total : 16,818.04 66632 4/13/2011 003210 DEPT 32-2500233683 122952 Gas Shut Off Wrenches 10-808-2217:000-000 108.67 122954 12 Rain Suits 10-808-221-000-000 208.89 5131211 MAINT SUPPLIES 10-195-245-000-000 33.02 10-440-245-000-000 25.31 10-450-245-000-000 9.34 Total : 385.23 66633 4/13/2011 010664 SHELL FLEET MANAGEMENT 8000209687104 March Vehicle Fuel 10-175-272-000-000 676.45 Total : 676.45 Page: 1 �z vchlist Voucher List Page: 2 04/19/2011 4:07:59PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66634 4/19/2011 011138 SPARKLETTS 9637116 040111 March Bottled Water 10-190-238-000-000 106.97 10-450-238-000-000 14.16 10-805-238-000-000 14.16 10-440-238-000-000 45.12 Total : 180.41 66635 4/19/2011 010218 CHEVRON &TEXACO CARD SERVICES 29409986 March Vehicle Fuel 10-175-272-000-000 441.14 10-440-272-000=000 130.36 - 34-800-272-000-000 42.90 Total : 614.40 66636 4/19/2011 001907 COSTCO#478 0478 11 0367 1E C. CARE SUPPLIES 10-440-220-000-000 179.21 Total : 179.21 66637 4/19/2011 006597 SCHOLASTIC BOOK FAIRS W2817302BF C. Care Book Fair 23-200-14-00 1,514.99 Total : 1,514.99 66638 4/19/2011 006720 SO.CA.EDISON COMPANY March 2011 March Energy Usage 16-510-238-000-000 5,578.13 26-600-238-000-000 49.80 26-601-238-000-000 41.50 26-602-238-000-000 58.10 Total : 5,727.53 66639 4/19/2011 001213 AT&T April 2011 Apr/May Phones& Internet Service 10-190-235-000-000 308.81 10-440-235-000-000 307.03 Total : 615.84 66640 4/19/2011 006730 SO.CA.GAS COMPANY March 2011 MAR/APR NATURAL GAS/CNG FUEL Page: 2 vchlist Voucher List Page: 3 04/19/2011 4:07:59PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66640 4/19/2011 006730 SO.CA.GAS COMPANY (Continued) 10-190-238-000-000 532.77 10-440-238-000-000 93.36 10-175-272-000-000 7.80 10-440-272-000-000 2.60 34-800-272-000-000 2.60 Total : 639.13 66641 4/26/2011 007402 (NEOPOST POSTAGE-ON CALL), U.S. PC 04122011 Postage for Meter#74456587 10-190-211-000-000 3,000.00 Total : 3,000.00 66642 4/26/2011 011143 ALBERT A. WEBB ASSOCIATES 110868 MARCH TRAFFIC ENG. SRVS-MIGUELS 32-200-250-000-000 44.67 110870 MARCH PROFESSIONAL SERVICES-BARTON SQ 32-200-250-000-000 1,672.56 110911 MARCH TRAFFIC ENGINEERING SERVICES 32-200-250-000-000 741.00 Total : 2,458.23 66643 4/26/2011 011186 CAPOZZI, ANTHONY& MAUREEN 03142011 Rental Inspection Fee Refund 10-400-08 95.00 Total : 95.00 66644 4/26/2011 001740 CDW GOVERNMENT INC WWS2935 LAPTOP MOUSE 10-808-700-000-000 13.05 Total : 13.06 66645 4/26/2011 011031 CINTAS CORPORATION#150 150333350• C. CARE PAPER GOODS&SUPPLIES 10-440-228-000-000 181.25 150342452 C. CARE PAPER GOODS &SUPPLIES 10-440-228-000-000 181.25 150351548 C. CARE PAPER GOODS &SUPPLIES 10-440-228-000-000 190.30 Total : 552.80 66646 ' 4/26/2011 001840 CITY OF COLTON January 2011 January Wastewater Treatment Page: 3 vchlist Voucher List Page: 4 04/19/2011 4:07:59PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66646 4/26/2011 001840 CITY OF COLTON (Continued) 21-570-802-000-000 99,743.29 Total : 99,743.29 66647 4/26/2011 011029 COBRA SIMPLE 106 MARCH COBRA ADMINISTRATION 10-190-220-000-000 50.00 Total : 50.00 66648 4/26/2011 001867 COMMERCIAL LANDSCAPE SUPPLY 171835 LANDSCAPE SUPPLIES 10-450-245-000-000 96.07 Total : 96.07 66649 4/26/2011 011166 CORNERSTONE RECORDS MANAGEME10157759 MARCH ARCHIVE TAPE STORAGE 10A 40-250-000-000 55.00 10-380-250-000-000 55.00 Total : 110.00 66650 4/26/2011 011171 D. J. D. GROUP INC. 516 SR. CTR COMM'L KITCHEN-DEMO& INSTALL 32-600-311-000-000 43,470.79 Total : 43,470.79 66651 4/26/2011 001950 DATA QUICK B1-1913014 March 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 66652 4/26/2011 002082 DISCOUNT SCHOOL SUPPLY D13704360101 C. CARE/TINY TOT SUPPLIES 10-440-221-000-000 17.43 10-440-219-000-000 258.80 Total : 276.23 66653 4/26/2011 002258 EMPIRE OFFICE MACHINES 83575 Printer Service-City Mqrs Office 10-120-246-000-000 82.00 Total : 82.00 66654 4/26/2011 002740 FRUIT GROWERS SUPPLY 90746021 MAINT SUPPLIES 10-450-245-000-000 30.64 Page: 4 vchlist Voucher List Page: 5 04/19/2011 4:07:59PM CITY OF GRAND TERRACE _ Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66654 4/26/2011 002740 FRUIT GROWERS SUPPLY (Continued) 90747127 Irrigation Supplies-Neighborhood Median 32-600-305-000-000 80.88 90747136 Irrigation Supplies-Neighborhood Median 32-600-305-000-000 38.07 Total : 149.59 66655 4/26/2011 002760 G & R REFRIGERATION 46006 Refrigerator/Freezer Service-C. Care 10-440-245-000-000 118.38 Total : 118.38 66656 4/26/2011 002901 G.T. AREA CHAMBER OF COMMERCE 6430-RDA APRIL CONSULTANT SERVICES 32-370-213-000-000 860.00 Total : 860.00 66657 4/26/2011 002930 GRAINGER 9462048365 Raincoats and Boot Covers 10-808-247-000-000 94.80 Total : 94.80 66658 4/26/2011 010164 GREAT-WEST PR End 4/1/201' Contributions for PR End 4/1/2011 10-022-63-00 4,730.40 Total : 4,730.40 66659 4/26/2011 003152 HARPER& BURNS LLPN March 2011 March Legal Services 10-160-250-000-000 3,810.63 32-200-251-000-000 3,810.62 Total : 7,621.25 66660 4/26/2011 011187 HARTZ, NICOLE 04142011 Rollins Park Reservation Refund 4/9/11 10-450-01 90.00 Total : 90.00 66661 4/26/2011 002727 J.R. FREEMAN COMPANY 460384-0 OFFICE SUPPLIES 10-125-210-000-000 104.27 460508-0 Fax Machine Drum 10-120-246-000-000 82.66 Total : 186.93 Page: 5 vchlist Voucher List Page: 6 04/19/2011 4:07:59PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66662 4/26/2011 003850 JANI-KING OF CA., INC. LAX03111208 CARPET CLEANING-COMMUNITY CENTER 10-440-244-000-000 50.00 LAX03111209 FEB/MAR CARPET CLEANING-C.CARE CNTR 10-440-244-000-000 200.00 LAX04110931 APRIL C. CARE JANITORIAL SERVICES 10-440-244-000-000 975.00 Total : 1,225.00 66663 4/26/2011 010773 KELLAR SWEEPING INC. 5819 MARCH STREET SWEEPING SERVICES 16-900-254-000-000 4,200.00 Total : 4,200.00 66664 4/26/2011 010449 KONICA MINOLTA BUS. SOLUTIONS 217399456 QtrIV Maint Agremnt Copy Usaqe 10-172-246-000-000 44.30 10-175-246-000-000 44.30 Total : 88.60 66665 4/26/2011 010449 KONICA MINOLTA BUS. SOLUTIONS 217399733 4th Qtr Copier Maint-Toshiba E-studio 10-172-246-000-000 37.50 10-175-246-000-000 _ 37.50 Total : 75.00 66666 4/26/2011 010984 MERRILL, LYNN 04052011 FEB/MAR ENERGY GRANT PROJ ADMIN/MGMT 10-195-720-000-000 1,575.00 Total : 1,575.00 66667 4/26/2011 004763 MONROE SYSTEMS INC. 54090A Calculator Wedges 10-140-210-000-000 28.72 Total : 28.72 66668 4/26/2011 005400 OFFICE DEPOT 548182125001 Toner&Office Supplies 10-440-246-000-000 211.86 557529193001 Office Supplies 10-172-210-000-000 61.00 10-175-210-000-000 61.00 10-625-210-000-000 56.67 Page: 6 L vchlist Voucher List Page: 7 04/19/2011 4:07:59PM CITY OF GRAND TERRACE „ Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66668 4/26/2011 005400 OFFICE DEPOT (Continued) 557627177001 Office Supplies 10-140-210-000-000 3.22 557743693001 Kitchen Supplies 10-190-220-000-000 58.57 558449960001 Budget/Office Supplies 10-140-210-000-000 240.39 558481289001 Toner& Ink for Printers and Fax Machine 10-140-210-000-000 629.93 560926088001 Office Supplies 10-140-210-000-000 73.62 Total : 1,396.26 66669 4/26/2011 005586 PETTY CASH 04182011 ' Replenish C. Care Petty Cash 10-440-210-000-000 32.61 10-440-221-000-000 37.39 10-440-223-000-000 34.32 10-440-228-000-000 63.30 Total : 167.62 66670 4/26/2011 005720 QUILL CORP 3529355 Carbon Paper 10-140-210-000-000 3.03 Total : 3.03 66671 4/26/2011 010171 SIEMENS INDUSTRY INC RI-107288 MARCH ROUTINE SIGNAL MAINTENANCE 16-510-255-000-000 451.68 RI-107289 March Response Call-outs 16-510-255-000-000 1,014.65 Total : 1,466.33 66672 4/26/2011 011167 RITRON WIRELESS SOLUTIONS INC 2753563 BATTERY CHARGERS FOR MURS HT RADIOS 10-808-247-000-000 587.21 10-808-247-000-000 805.82 Total : 1,393.03 66673 4/26/2011 006285 RIVERSIDE HIGHLAND WATER CO 2287 Dec/Jan Sewer Billing 21-572-255-000-000 2,476.69 Page: 7 vchlist Voucher List Page: 8 04/19/2011 4:07:59PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66673 4/26/2011 006285 RIVERSIDE HIGHLAND WATER CO (Continued) Total : 2,476.69 66674 4/26/2011 006310 ROADRUNNER SELF STORAGE INC. 12755 MAY STORAGE RENTAL 10-140-241-000-000 119.00 Total : 119.00 66675 4/26/2011 006335 ROQUET PAVING INC. 0311-11 Concrete Repairs-Mt Vernon/DeBerry 16-900-257-000-000 3,756.92 0319-11 a Patch Work on Vivienda 16-900-257-000-000 791.00 Total : 4,547.92 66676 4/26/2011 006341 ROSENOW SPEVACEK GROUP INC. 0026350 March Financial Admin 33-140-250-000-000 1,500.00 Total : 1,500.00 66677 4/26/2011 006435 SAN BERNARDINO, CITY OF 5402 APRIL ANIMAL CONTROUHOUSING SRVS 10-187-256-000-000 8,682.00 Total : 8,682.00 66678 4/26/2011 006778 STAPLES 8018301451 Office Supplies#3153033982 10-140-210-000-000 34.10 Total : 34.10 66679 4/26/2011 006778 STAPLES 1772612001 Office Supplies 10-140-210-000-000 29.32 Total : 29.32 66680 4/26/2011 006898 SYSCO FOOD SERVICES OF L.A. 1040606137 C. CARE FOOD &SUPPLIES 10-440-220-000-000 497.82 1041325000 C. CARE FOOD &SUPPLIES 10-440-220-000-000 736.79 Total : 1,234.61 66681 4/26/2011 007034 TRANSPORTATION ENGINEERING 1111 February Traffic Enq Services 10-175-255-000-000 1,495.00 Total : 1,495.00 Page: 8 vchlist Voucher List Page: 9 04/19/2011 4:07:59PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66682 4/26/2011 007220 UNDERGROUND SERVICE ALERT 2011030286 March Diq Alert Tickets 16-900-220-000-000 82.50 Total : 82.50 66683 4/26/2011 010693 UNITED WAY PR End 4/1/11 PR End 4/1/11 Donations 10-022-65-00 64.50 Total : 64.50 66684 4/26/2011 010605 URBAN FUTURES INCORPORATED 210345 Disclosure Report-'04 Refundinq Tabs 33-300-210-000-000 1,750.00 Total : 1,750.00 66685 4/26/2011 007880 WEST GROUP 822657153 Mar/Apr CA Code Updates 10-125-250-000-000 483.94 Total : ' 483.94 58 Vouchers for bank code: bofa Bank total : 247,966.18 58 Vouchers in this report Total vouchers: 247,966.18 Page: 9 T 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 SALARIEWWAGES 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 CITY OF GRAND TERRACE PENDING CITY COUNCIL APPROVAL CITY COUNCIL MINUTES REGULAR MEETING-APRIL 26,2011 A regular meeting of the City Council of the City of Grand Terrace was called to order in the Council Chambers,Grand.TerraceCivic Center,22795 Barton Road,Grand Terrace,California,on April 26, 2011 at 6:00 p.m. PRESENT: Walt Stanckiewitz, Mayor Lee Ann Garcia, Mayor Pro Tern Darcy McNaboe, Councilmember Bernardo Sandoval, Councilmember Gene Hays, Councilmember Betsy M. Adams, City Manager Brenda Mesa, City Clerk Bernard Simon, Finance Director Joyce Powers, Community& Economic Development Director Richard Shields, Building & Safety Director John Harper, City Attorney Sgt. Ed Finneran, San Bernardino County Sheriff s Department Rick McClintock, San Bernardino County Fire Department ABSENT: None The City Council meeting was opened at 6:00 p.m.with an Invocation by Mayor Pro Tem Lee Ann Garcia, followed by the Pledge of Allegiance led by Councilman Gene Hays. ITEMS TO DELETE.-None SPECIAL PRESENTATIONS A. Proclamation- Blue Ribbon Week- May 9-15, 2011 Mayor Pro Tem.Lee Ann Garcia, read a Proclamation proclaiming the week of May 9-15, 2011 as Blue Ribbon Week in the City of Grand Terrace, recognizing and supporting all peace officers and law enforcement agencies and presented it to Lt. Jamsen. B. Proclamation-Volunteer Month-April 2011 Mayor-Walt Stanckiewitz,read a Proclamation proclaiming the month of April as Volunteer Month is the City of Grand Terrace to promote the sprit of volunteerism and be aware of the important contributions.made by those who volunteer to serve our community. Mayor Stanckiewtiz announced that the Volunteer Organizations that make a difference in COUNCIL AGENDA ITEM NO. Council Minutes 04/26/2011 Page 2 the City are going to be recognized this evening at the Council Meeting. He introduced John Van Winkle a representative for Assemblyman Mike Morrel that will be presenting certificates on his behalf. Mayor Stanckiewtiz.announced all of the Volunteer Organizations and presented them with certificates. CONSENT CALENDAR CC-2011-30 MOTION BY COUNCILMEMBER MCNABOE, SECOND .BY MAYOR PRO TEM GARCIA, CARRIED 5-0, to approve the following Consent Calendar Items with the removal of item 3F.: 3A. Approve Check Register No. 04/26/2011 3B. Waive Full Reading of Ordinances on Agenda 3C. Approval of Minutes of 04/12/2011 3D. Acceptance of Dedication from SDG Investments, LLC. 3E. Acceptance of Dedication of Right-of-way from Colton Joint Unified School District, (CJUSD) 3G.. Set FY 20.11-12 Budget Workshop 3H. Community Emergency Response Team Minutes of 03-01-2011 ITEM REMOVED FROM THE AGENDA 3F. Letter of Support for AB 66 (Chesbro) Vehicle License Fees It was the consensus of the Council not to support this item. PUBLIC COMMENT Bill Hussey, 22780 Lark Street, indicated that he supports the re-hire of Coach Bray as,the Head Football Coach for Colton High School. He stated that Coach Bray is known as a classified employee. He is head of-security for the Colton Joint Unified School District. According to the Rialto Rule, that was established in hiring non-certified teachers in high school sports,it states that a classified employee has to re-apply every year and he was aware of that. When Coach Bray applied again this year he was the only one that applied. The job remained open for 10 days,which is required by law,and at the end of the 10 days the School Board decided to not hire him and post the job outside of the district. Coach Bray has brought many accomplishments to the Football team this past season. He has over 25 years of experience with the district,numerous parent support and strong community support from Colton and.Grand Terrace. He feels that Grand Terrace is affected by this decision as well as the players. He teaches the players to be good football players as well as leaders on and Council Minutes 04/26/2011 Page 3 off the field. He feels that there will be a great loss if the Coach is not rehired. Not many parents know what is going on with the School District and the budget crisis that they are in and the effects that it will have on the students. He stated that coaches don't make that much money and that Coach Bray puts the money back into the students. He indicated that he is a spokesperson and that he is passing around a support petition and that there is a School Board Meeting on May 5,2011 and urged the Council and community to attend. He stated that they will be taking.a public vote at that meeting. Denis Kidd, 22874 Pico Street, invited everyone to Highgrove Day. It will be held on Saturday,May 7, 2011 from 9:00 a.m. to 2:00 p.m. There will be a pancake breakfast from 7:00 a.m.to noon that is sponsored by the FSA. There will be a hot rod and classic car show at the Norton Younglove Community Center and Park in Higrove, 459 Center Street. This event will be a salute to the Military. The Riverside Concert Band will be there from 11:00 a.m. to 12 noon playing patriotic music. There will be a fly-over. There will be military vehicles on display and a kids zone as well as vendors and many other activities going on. Bobbie Forbes, 11850 Burns Avenue,reminded the community that Citizens on Patrol will check their homes while they are on vacation for free. She stated that there was a task.force brought in to work with Loma Linda and Grand Terrace and questioned what it was for. She feels that there is an increase in crime in the community. She has discovered crimemapping.com and encouraged people to check it out. She appreciated the compost pile. She requested that contractors doing work for upcoming City jobs use only U.S. Citizens. Nick Calero, representing Neil Derry, invited the Council and members of the community to a Town Hall Meeting on May 5`h at 6:30 p.m. in the Community Meeting room. The Supervisor will be available to answer any questions that people may have. Don Man es,22638 De Soto Street,stated that he has lived in Grand Terrace long before its incorporation. He stated that his wife works in the postal area at Smart Time Liquor in Grand Terrace. She has worked there for over 9 years. He stated that she and another employee were sexually assaulted by her employer and has caused her to retire. He is very upset by this incident. Jeffrey McConnell, 21358 Walnut Avenue,indicated that a recent contract was awarded to a contractor to do the landscaping project on Grand Terrace Road. All of the workers appeared to be of questionable residence of the U.S. He expressed concern with potential transit workers working his residential area and that all future bids have this be a requirement in the bid process and enforced. Rita Schwark, 21952 Grand Terrace Road, expressed her concern with the upcoming park project and.requested that only U.S..residents be allowed to perform the work and that it be enforced. Council Minutes 04/26/2011 Page 4 Community and Economic Development Director Joyce Powers, stated that she and the Director of Building and Safety/Public Works Director Richard Shields take responsibility for the prevailing wage monitoring that goes with those projects and it does include documentation with social security numbers and the wages the employees are being paid. Staff is also required to do unexpected interviews of the employees. COUNCIL REPORTS Councilmember Bernardo Sandoval, indicated that he is accustom to being able to have crime statistics. He would like to not only see what occurs during the month but would also like to see a baseline of year after year and specific occurrences of particular crimes which will give them the ability to understand them fully. He stated that he strongly supports Coach Bray. He feels that this issue is not only a Colton District issue, it's a community issue and feels that the City needs to come out and show support for Coach Bray. He stated that in the future he would like all legal agreements to be included in the packet and if that is not possible that it be clearly identified and explained to as why it isn't. Councilmember Gene Hays,acknowledged the Grand Terrace Chargers,Junior All American Football and Cheer organization and the importance of having that organization in town. Grand Terrace High School will have a football team. When you look at some of the power house schools,the players perform well because they started younger in the community in the youth leagues. The Grand Terrace Chargers would be that type if situation so that when these kids go to the high school they can compete with some of the power house high schools. He feels that this organization needs to be supported. Councilmember Darcy McNaboe, reported that she was given a tour of the Grand Terrace High School and it is really taking shape. She found out that at the last School Board Meeting they approved the second phase and will be building their football stadium and the swimming pool. First week of May is when the RFP's will go out. They are on schedule for the opening in Fall of 2012. Stated that she attended the Solid Waste Advisory Task Force representing Grand Terrace. She indicated that this is a San Bernardino County Advisory Board that has responsibilities to carry out that are mandated by the State. One of the things that they focus on is the diversion of solid waste from the landfills into ways of recycling. The Burrtec Waste Facility that is in Aqua Mansa is one of the facilities that takes a lot of waste that comes out of collections and they are recycling at least 80%of what is brought in there. This task force looks at ways of reducing the solid waste that is produced in the County. One of the next goals they are looking at helping the County to accomplish by July 1,2012 is for all commercial businesses to have recycling programs in place,which would include multi-family dwellings with over 5 occupants. Burrtec takes a lot of the waste that they pick up and they send it through the recycling center even if it's not in a recycle container. .She congratulated the Women of Distinction. Mike Morrel has carried on the tradition for the 63`d district. The women being recognized for Grand Terrace this year are Council Minutes 04/26/2611 Page 5 Pat Nix and Sally McGuire. They will be honored at the annual lincheon. She announced that it is Virginia Harford's 8I't Birthday and wished her a Happy Birthday. Mayor Pro Tern Lee Ann Garcia,reminded everyone that the art show will be held on Sunday in the Community Meeting, room from 1-:00 .to 4:00 p.m. It is a wonderful event and encouraged everyone to attend. She encouraged everyone to attend the Town Hall Meeting that will be held. She complimented the Chamber of Commerce on their last luncheon that was held. She reported that she attended the Grand Opening of the JC Glass Company. They also went to Mike's Fitness as well as Tim's Mobile Service. She complimented the staff on bringing forward the weed abatement process. She reported that a summer swim program will be held this year from June 20 -July 28 at Terrace Hills Middle School. This program will be handled through the YMCA. Mayor Walt Stanckiewitz,announced that March 30t'was declared Welcome Home Vietnam Veteran's Day. He attended the Easter Service at Azure Hills Church. It was conducted by . members of the church volunteers. In his 60 plus years of life,he has never experienced a story so well done and so emotional and wanted to give kuddos to them for a job well done. The City received their Q4 Sales Tax Update and it shows that we aren't sinking anymore. The sales tax revenue has stabilized. On May 12th at 3:30 p.m. Supervisor Derry will be doing a.ribbon cutting on the new Senior Center kitchen. On May7th, the tale of Snow White will be held at the University of Redlands put on by the Bowen Hayes .School of Dance. PUBLIC HEARINGS -None UNFINISHED BUSINESS -None NEW BUSINESS 8A. Public Convenience of Necessity for Issuance of an Off-site Beer and Wine License for Stater Bros. Market CC-2011-31 MOTION BY COUNCILMEMBER MCNABOE, SECOND BY COUNCILMEMBER HAYS, CARRIED 5-0, to issue a Public Convenience or Necessity letter to the ABC in support of an Off-Sale Beer and Wine License for Stater Bros. Markets. 8B. Review of the City's Sign Ordinance Affecting Political Signs CC-2011-32 MOTI.ON BY - COUNCILMEMBER MCNABOE, SECOND BY COUNCILMEMBER SANDOVAL, CARRIED 5-0,to direct staff to proceed with an amendment to the Grand.Terrace Municipal Code Section 18.80.160 regulating Council Minutes 04/26/2011 Page 6 political signs. 8C. Review Option of Selling Cellular Site Leases at the Following Locations: Richard Rollins Park and Grand Terrace Fire Station#23 CC-2011-33 MOTION BY COUNCILMEMBER SANDOVAL, SECOND BY MAYOR PRO TEM GARCIA,CARRIED 5-0,to continue to market City owned cellular site leases located at Richard Rollins Park and Grand Terrace Fire Station#23, and submit all offers for review by the City Council. 8D. Implementation of Accumulation Program for Part-Time and Limited Service Employees (APPLE) Plan CC-2011-34 MOTION BY COUNCILMEMBER HAYS, SECOND BY VICE,CHAIRMAN GARCIA,CARRIED 5-0,to adopt a Resolution adopting the APPLE Plan to provide retirement benefits to part-time and temporary employees of the City in lieu of coverage under Social Security and authorize the City Manager to sign documents necessary to implement the Apple Plan. 8E. Omnitrans College Free Pass Pilot Program CC-2011-35 MOTION BY COUNCILMEMBER HAYS, SECOND BY VICE-CHAIRMAN GARCIA, CARRIED 5-0, to enter into an agreement with Omnitrans for one-year participation to assist with a College Free Pass pilot program for Grand Terrace .College Students attending California State University San Bernardino, Chaffey College,Crafton Hills College and San Bernardino Valley College in the amount of $5,775.00. CLOSED SESSION 9A. City Attorney Contract GC54957(b)l Mayor Stanckiewitz announced that the Council met in Closed Session to discuss the City Attorney Contract per GC54957(b)l and Council directed Staff to develop a Request For Proposal for City Attorney Candidates. Mayor Stanckiewitz adjourned the meeting at 9:08 p.m.,until the next City Council Meeting which is scheduled to be held on Tuesday, May 10, 2011 at 6:00 p.m. CITY CLERK of the City of Grand Terrace Council Minutes 04/26/2011 Page 7 MAYOR of the City of Grand Terrace +_ CALIFORNIA AGENDA REPORT MEETING DATE: April 26, 2011 Council Item (X) CRA Item ( ) TITLE: Acceptance of Dedication from SDG Investments, LLC. PRESENTED BY: Richard Shields, Director of Building and Safety/Public Works RECOMMENDATION: 1. Accept Grant Deed dedicating land for public road improvements as shown in Exhibit "A" and "B". 2. Direct the City Clerk to record the Grant Deed and exhibits after the Mayor has signed the Grant Deed. BACKGROUND: On February 22, 2011 the Redevelopment Agency approved Resolution No. 2011-03 adopting certain findings regarding the construction and installation of public improvements which are of benefit to the Grand Terrace Community Redevelopment project area. DISCUSSION: A portion of the public improvements include obtaining right-of-way dedication for a vehicular right turn lane on east bound Barton Road in front of Miguel's Jr., restaurant. The dedicated land is currently owned by SDG Investments, LLC. A Grant Deed prepared by City Staff and dedication documents prepared by Albert A. Webb Associates are attached and identified as Exhibit "A" and "B". The attached Grant Deed has been signed by SDG Investments, LLC, granting the right-of-way as shown in Exhibit "A" and "B" to the City of Grand Terrace for the purpose of street improvements. FISCAL IMPACT: Preparation of the right-of-way exhibit totals $2,000.00, plus Staff time to prepare the staff report for City Council approval and recordation with the San Bernardino County Recorders Office. COUNCIL AGENDA ITEM NO159 C ' Respectfully submitted, Riofiard Shie s, Director of Building and Safety/Public Works Manager Approval: ->v ✓Betsy Adams City Manager ATTACHMENTS: Grant Deed Exhibit "A" and "B" EXHIBIT "A" LEGAL DESCRIPTION FOR PUBLIC ROAD AND UTILITIES That portion of Lot 3 of Map Showing Lands of the East Riverside Land Co., as shown by map on file in Book 6 of Maps at page 44 thereof, Records of San Bernardino County, California, in the City of Grand Terrace, County of San Bernardino, lying within Section 5, Township 2 South, Range 4 West, San Bernardino Meridian,being a portion of that certain parcel of land granted to SDG Investments,LLC by Grant Deed recorded December 14, 2006 as Document No. 2006-0861595, Official Records of San Bernardino County,California, said portion being described as follows: COMMENCING at the northwest corner of said Lot 3 as shown on said map; Thence South 00°05'56" West along the west line of said Lot 3,a distance of 17.00 feet to a point on the southerly right of way line of Barton Road as granted to the City of Grand Terrace by Grant Deed recorded August 18, 1986 as Instrument No. 86-234861, Official Records of San Bernardino County, California, said right of way line being distant southerly 50.00 feet, measured at a right angle, from the centerline of said Barton Road; Thence North 89°59'26" East along said southerly right of way line, a distance of 26.19 feet to the TRUE POINT OF BEGINNING; Thence continuing along said right of way line and along said right of way line as granted to the City of Grand Terrace by Grant Deed recorded April 08, 1987 as Instrument No. 87-115677 and Grant Deed recorded May 19, 1987 as Instrument No. 87-167448, both Official Records of San Bernardino County, California, North 89°59'26" East, a distance of 209.40 feet to the northeast corner of said parcel of land granted to SDG Investments,LLC; Thence South 00°28'42" West along the east line of said parcel, a distance of 21.00 feet to a point on a line parallel with and distant southerly 71.00 feet, measured at a right angle, from said centerline of Barton Road; Thence South 89°59'26" West along said parallel line,a distance of 6.65 feet; Thence North 45°00'34" West, a distance of 24.04 feet to a point on a line parallel with and distant southerly 54.00 feet, measured at a right angle,from said centerline of Barton Road; Thence South 89°59'26" West along said parallel line, a distance of 10.00 feet; Thence South 00°00'34" East, a distance of 6.00 feet to a point on a line parallel with and distant southerly 60.00 feet, measured at a right angle,from said centerline of Barton Road; Thence South 89°59'26" West along said parallel line,a distance of 6.00 feet; Thence North 00°00'34" West, a distance of 6.00 feet to a point on a line parallel with and distant southerly 54.00 feet,measured at a right angle, from said centerline of Barton Road; Thence South 89°59'26" West along said parallel line,a distance of 91.44 feet; Thence South 00°00'34" East, a distance of 2.00 feet to a point on a line parallel with and distant southerly 56.00 feet, measured at a right angle,from said centerline of Barton Road; G:\2010\10-0138\DWG&PRO\Legal Desc Miguels RW.doc Page 1 of 2 Albert A. Webb Associates Thence South 89°59'26" West along said parallel line, a distance of 25.00 feet; Thence North 00°00'34" West, a distance of 2.00 feet to a point on said line parallel with and distant southerly 54.00 feet, measured at a right angle,from said centerline of Barton Road; Thence South 89°59'26" West along said parallel line, a distance of 24.26 feet to the beginning of a tangent curve,concave to the north,having a radius of 58.00 feet; Thence westerly along said curve, to the right, through a central angle of 9°25'24", an arc distance of 9.54 feet; Thence North 80°35'10" West, a distance of 19.65 feet to the TRUE POINT OF BEGINNING. Containing 1,133 square feet,more or less. SEE PLAT ATTACHED HERETO AS EXHIBIT"B"AND MADE A PART HEREOF. PREPARED UNDER MY SUPERVISION 7;�^ I 1 USED LAND x A Mohammad A. Faghihi, S. 6607 Date Prepared by: No. 6607 Checked by: G:\2010\10-0138\DWG&PRO\Legal Desc Miguels RW.doc Page 2 of 2 Albert A. Webb Associates i EXHIBIT "B" 17 95 MBI 40146 CIL BAPTON ROAD P.O.C. N89°59'26'E m NW COP N89'59 26'E- LOT 3 26.19' NORTH LINE LOT 31Z — B — S00°05 56"W 17.00' N89°59 26'E 209.40' T.P.O.B. L12Cl L9 L7 �co R=58.00' 00 v (D T 9'25 24" J L=9.54' .F.t N J 3 GRANT DEED TO SDG INVESTMENTS, LLC v RECORDED 1211412006 AS DOC. NO. 2006-0861595, O.R. ov I � APN 1167-231-20 .3 MO (6/44 LINE BEARING DISTANCE L 1 S89°59 26"W 6.65' L2 N45'00'34"W 24.04' O 17' GRANTED TO THE CITY OF L3 S89'59 26"W 10.00, GRAND TERRACE REC. OBIIBI1986 L4 SOO'00 34'E 6.00' BY INST. #86-234861, O.R. L5 S89°59 26"W 6.00' O17' GRANTED TO THE CITY OF L6 N00°00 34"W 6.00' GRAND TERRACE REC. 0410811987 L7 S89°59 26"W 91.44' BY INST. #87-115677, O.R. LB SOO°00 34'E 2.00' ' C 17' GRANTED TO THE CITY OF L9 S69'5926"WI 25.00 SRO LAND SCR GRAND TERRACE REC. 05/19/1987 L10 N00°00'34"W 2.00, BY INST. #87-167448, O.R. L 11 S89°59 26"W 24.26' J q L 12 NBO'35'10"W 19.65' � 1 NO. 6607 NOTE WHEN DETERMINING SET BACKS TO THE EXISTING STRUCTURE USE THE NORTH LOT LINE IDENTIFIED AS 'E". f OF CAN05 SEC. 5, T.2S., RAW., S.B.M. A L H E R T A. CITY OF GRAND TERRACE WEBB A s s o C i A T E s DATE PREPARED: 11/01/10 G:\2010\10-0138\DWG6PR0\Miguels RW dedication.pro THIS PLAT IS SOLELY AN AID IN LOCATING THE PARCEL(S) DESCRIBED IN THE ATTACHED' DOCUMENT. SHEET _ 1 — OF — 1 — W.O. 10-0049 SCALE:1"__60 DRWN BY —ALL—_ DATE lt-4K—j- CHKD BY �' DATE SUBJECT: PUBLIC ROAD & UTILITY EASEMENT WHEN RECORDED MAIL TO: City Clerk City of Grand Terrace 22795 Barton Road Grand Terrace,CA 92313 SPACE ABOVE THIS LINE FOR RECORDERS USE APN:1167-231-20 (No Recording fee per Sec.6103) GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, SDG Investments, a LLC, does hereby GRANT to the City of Grand Terrace, a Municipal Corporation for Public Streets and Public Utility Purposes the real property in the City of Grand Terrace,County of San Bernardino, State of California, described as follows: Exhibits "A" and `B" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. Signature of Grantor Asour.-Z— lmtm*�6rL 1::�— Print Name and Title lgna a and DATED: CITY OF GRAND TERRACE *ATTEST: By Brenda Mesa, City Clerk Mayor, City of Grand Terrace City of Grand Terrace 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 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 th State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal u C F ACKNOWLEDGMENT State of California County of Riverside On before me, M. Talley, Notary Public (insert name and title of the officer) C personally appeared Uasoue Z who proved to me on the basis of satisfactory evidence to be the on )whose name( e scribed to the within instrument and acknowle�ls d to me th%pS; p(e/.. executed t e ame in is/ er/toir authorized capacity(i6s), and that b r/their si-00 on the instrument the er on( , or the entity upon behalf of which th ) acted, execu ed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. M.WITNESS m hand and official seal. ss on#1 y Commission#r 868589 Z ai Notary Public•California > z ` Riverside County My Comm.Expires Nov 14,2013 Sign ur (Seal) CALIFORNIA AGENDA REPORT MEETING DATE: April 26, 2011 Council Item (X) CRA Item ( ) TITLE: Acceptance of Dedication of Right-of-Way from Colton Joint Unified School District, (CJUSD). PRESENTED BY: Richard Shields, Director of Building and Safety/Public Works RECOMMENDATION: 1. Accept Dedication of Right-of-Way from CJUSD for Main Street public improvements. 2. Direct City Clerk's office to record the attached Grant Deed and Exhibits "A" thru "C", with the San Bernardino County Recorder's Office. BACKGROUND: CJUSD and Riverside County Transportation Department is proposing to widen and improve Main Street from Michigan Street to Taylor Street. The proposed improvement is part of the Grand Terrace High School project constructed by CJUSD. The improvements are scheduled to start in summer of 2011. DISCUSSION: Main Street from Michigan Street to Taylor Street will be widened and improved to accommodate new lanes for increased traffic along Main Street. Two new signal lights will be installed on Main Street, one at the entrance to the school and one on the corner of Michigan Street and Main Street. Additional right-of-way for the widening and signal improvements is being dedicated to the City for the public improvements. Grant Deed and dedication documents prepared by Epic Engineering are attached as Exhibit "A" thru "C". The attached Grant Deed has been signed by Jamie R. Ayala with CJUSD, granting the right-of-way for the purpose of street improvements. FISCAL IMPACT: Staff time to prepare dedication documents for acceptance and recordation with San Bernardino County Recorder's Office. COUNCIL AGENDA ITEM NO.3 b[ Respectfully submitted, -2 Ric46rd Shields, Director of Building and Safety/Public Works Manager Approval: Bets Adam City Manager ATTACHMENTS: Grant Deed Exhibits "A" thru "C" RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO GRANT DEED The undersigned declares that the DOCUMENTARY TRANSFER TAX is g 0 and is computed on the full value of the interest or property conveyed;OR IS computed on the full value less value of liens or encumbrances remaining thereon at the time of sale. Signature of Declarant FOR VALUABLE CONSIDERATION, receipt of which.is hereby acknowledged, Colton Joint Unified School District Grantor, grants to The City of Grand Terrace grantee, the real property located in Grand Terrace city and San Bernardino County, California, described as follows: See attached Exhibit A, incorporated by reference to this document. CERTIFICATE OF ACKNOWLEDGEMENT OF NOTARY PUBLIC STATE OF CALIFORNIA, ) COUNTY OF CLiA (8"fb) On 1 before me, l�U(i-y 1 e, P-`Me f(1IA �-q t(�tere It sert name and title of the officer), personally appeared Q A— ,who proved to me on the basis of satisfactory evidence to be the person(whose name(p(g/are subscribed tot a within instrument and acknowledged to me thatashe/they executed the same in G)/her/their authorized capacit�kKes),and that by 0i her/their signature()on the instrument the person),or the entity upon behalf of which the person(j)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. JOANNE P. MEDINA COMM.#1915952 NOTARY PUBLIC•CALIFORNIA Signature Gv vle— P. `frWAA,NA (Seal) SAN BERNAROINO COUNTY Commission Eies Dec 9,2014 ! p EXHIBIT A LEGAL DESCRIPTION DEDICATION OF RIGHT OF WAY BEING PORTIONS OF LOTS 57, 58, 59 AND 60 OF THE EAST RIVERSIDE LAND COMPANY, SECTION 5, T2S, R4W, S.B.M. IN THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 6 OF MAPS, PAGE 44 THEREOF, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA,MORE PARTICULARLY DESCRIBED AS FOLLOWS: PARCEL 1 COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 5,T2S, R4W,S.B.M, SAID POINT ALSO BEING THE CENTERLINE INTERSECTION OF MAIN STREET AND TAYLOR STREET; THENCE SOUTH 89007'08" EAST, ALONG THE CENTERLINE OF MAIN STREET, A DISTANCE OF 252.68 FEET; THENCE NORTH 00052'52" EAST, A DISTANCE OF 44.00 FEET, TO A POINT ON THE NORTHERLY RIGHT OF WAY OF MAIN STREET, HAVING A 44.00 FOOT HALF WIDTH, AND THE EAST LINE OF THE SOUTHERLY 300 FEET OF THE WESTERLY 220 FEET OF PARCEL 1 AS SHOWN ON PARCEL MAP 1810, AS PER MAP FILED IN BOOK 16, PAGE 2 OF PARCEL MAPS OF SAID COUNTY, SAID POINT BEING THE POINT OF BEGINNING; THENCE NORTH 00°27'20" EAST ALONG SAID EAST LINE, A DISTANCE OF 3.00 FEET; THENCE SOUTH 89007'08" EAST PARALLEL WITH AND 47.00 FEET NORTHERLY FROM SAID CENTERLINE, A DISTANCE OF 89.51 FEET; THENCE NORTH 00052'52"EAST,A DISTANCE OF 8.00 FEET; THENCE SOUTH 89007'08" EAST PARALLEL WITH AND 55.00 FEET NORTHERLY FROM SAID CENTERLINE, A DISTANCE OF 220.97 FEET; THENCE SOUTH 00052'52" WEST EAST, A DISTANCE OF 8.00 FEET; THENCE SOUTH 89007'08" EAST PARALLEL WITH AND 47.00 FEET NORTHERLY FROM SAID CENTERLINE, A DISTANCE OF 632.49 FEET; THENCE NORTH 00052'52" EAST,A DISTANCE OF 10.00 FEET; THENCE SOUTH 89007'08" EAST PARALLEL WITH AND 57.00 FEET NORTHERLY FROM SAID CENTERLINE, A DISTANCE OF 929.91 FEET; THENCE SOUTH 00052'52" WEST, A DISTANCE OF 13.00 FEET TO THE NORTHERLY RIGHT OF WAY OF MAIN STREET AS DEDICATED BY INSTRUMENT NO. 19970349555, OFFICIAL RECORDS OF SAN BERNARDINO COUNTY; THENCE NORTH 8900708" WEST ALONG SAID RIGHT OF WAY, A DISTANCE OF 1872.87 FEET TO THE POINT OF BEGINNING. CONTAINS 0.3830 ACRES, MORE OR LESS. SEE EXHIBIT"B"ATTACHED HERETO AND MADE A PART THEREOF. SHF'ET 1 of 6 EPIC ENGINEERS 101 E Redlands Blvd, SUILC 146 e Redlands,Ca. 92373 e Ph. (909) 792-5969 a Fax(909)792-8869 a PARCEL 2 COMMENCING AT THE INTERSECTION OF THE CENTERLINE OF MAIN STREET (30.00 FOOT NORTHERLY HALF-WIDTH)AS ADOPTED BY BOARD RESOLUTION DATED MAY 3, 1948 PURSUANT TO SUPERVISORS MINUTES BOOK 40, PAGE 239, AND THE CENTERLINE OF MICHIGAN AVENUE SOUTH (15.00 FOOT NORTHERLY HALF-WIDTH) AS ADOPTED BY BOARD RESOLUTION RECORDED SEPTEMBER 11, 1952 1N BOOK 1399, PAGES 214 AND 215, SAID OFFICIAL RECORDS OF RIVERSIDE COUNTY. SAID INTERSECTION BEING A POINT ON THE COMMON BOUNDARY LINE BETWEEN THE COUNTY OF SAN BERNARDINO AND THE COUNTY OF RIVERSIDE, AS SHOWN ON MAP 844-C ON FILE IN THE OFFICE OF THE COUNTY SURVEYOR OF RIVERSIDE COUNTY, CALIFORNIA. SAID BOUNDARY LINE ALSO BEING THE NORTH QUARTER CORNER OF SECTION 8, TOWNSHIP 2 SOUTH, RANGE 4 WEST,SAN BERNARDINO MERIDIAN; THENCE N89007'08"W ALONG THE CENTERLINE OF MAIN STREET,A DISTANCE OF 67.40 FEET; THENCE N00052'52"E, A DISTANCE OF 44.00 FEET TO A POINT ON THE NORTHERLY RIGHT OF WAY OF MAIN STREET AS DEDICATED BY INSTRUMENT NO. 19970349555 OFFICIAL RECORDS OF SAN BERNARDINO COUNTY, SAID POINT BEING THE POINT OF BEGINNING; THENCE NORTH 45037'12" EAST, A DISTANCE OF 32.68 FEET TO THE WESTERLY RIGHT OF WAY OF MICHIGAN AVENUE AS CONVEYED BY SAID INSTRUMENT NO. 19970349555, BEING 44.00 FOOT HALF WIDTH; THENCE SOUTH 00032'25" WEST, A DISTANCE OF 3.09 FEET ALONG SAID RIGHT OF WAY TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTHWEST, HAVING A RADIUS OF 20.00 FEET AND A CENTRAL ANGLE OF 90020'27"; THENCE CONTINUING ALONG SAID RIGHT OF WAY, SOUTHERLY, SOUTHWESTERLY AND WESTERLY A DISTANCE OF 31.53 FEET ALONG SAID CURVE; THENCE NORTH 89007 08" WEST ALONG SAID RIGHT OF WAY AND TANGENT TO SAID CURVE, A DISTANCE OF 3.02 FEET TO THE POINT OF BEGINNING. CONTAINING 0.0042 ACRES, MORE OR LESS. SEE EXHIBIT"C"ATTACHED HERETO AND MADE A PART THEREOF. L AND Sly ,ri D. POT�G� Uc,No.7721 J+ Exp.0331-11 Q f�rF of CAL�F�� SHf.-,FT 2 of 6 EPIC ENGINEERS 101 E Redlands Blvd, SL11te 146 • Redlands, Ca. 92373 • Ph. (909)792-5969 • Fax(909)792-8869 f w S 300' OF THE W 220' W OF PARCEL 1 - AST RI Y1✓ PSJDE: LA1\1D PARCEL MAP NO. 1810 C 0 1NJJ P A N Y Nt 3, S / 4 4 I= PMB 16/2 LET O -57 PARCEL 1 0 L5 L3 L6 L7 L4 w = N SECTION E L8 8 P.O.B.PARCEL 1L2 MAIN STREET L12 W _ L1 _ I _ COUNTY OF SAN BERNARDINO z P.O.C.PARCEL 1 1st- r COUNTY OF RIVERSIDE 2.MAIN STREET �W w K wwZ �Q to O J d O N f0 N N O 0 O d O L U1 C O CL ! LINE BEARING DISTANCE L1 S89°07'08"E 252.68' L2 N00052'52"E 44.00' 'Z 0 L3 N00°27'20"E 3.00' Z L4 S89°07'08"E 89.51' L ANDS = L5 N00052'52"E 8.00' �5 D. PQ��G o L6 S89"07'08"E 220.97' V�' c' `�< i L7 S00052'52"W 8.00' ; o L8 S89°07'08"E 632.49' Ll 21 S89°07'08'E 1872.87' Uc.No.7721 ~ ,ram Exp.03-31-11 �lF OF CAOF o 0 s U CN L o EPIC ENGINEERS ONIBIT'B' W.O. 43.040 CIVIL ENGINEERING LAND SURVEYING BY: ADLPLANNING o 101 E.REDLANDS BOULEVARD CONSTRUCTION MANAGEMENT DEDICATION OF DATE: 2/16/2011 r- SUITE 146 TELE 909-792-5969 SCALE: 1" = 100' rn 1. REDLANDS,CA 92373 FAX 909-792-8869 RIGHT OF WAY SHEET: 3 OF 6 i 1 EAST R I VER SIDE LAND r 0 M P A N Y M 3, 6 44 LOT -58 LOT 0 LO M w L9 PARCEL 1 � cn L8 L10 w cw+n L12 i Nuj _ _ MAIN STREET— — OUNTY OF SAN BERNARDINO Z COUNTY OF RIVERSIDE a Q MAIN STREET r. 0 N tip ' N ti O O O. O n ai c 0 a a� LINE BEARING DISTANCE `i' L8 S89°07'08"E 632.49' o L9 N00052'52"E 10.00' "' L10 S89007'08"E 929.91' Z L121 S89007'08"E 1872.87' L AND SG c S D. p .p o OT GF 50 11 FT * LJc.No.7721 �f Exp.03-31-11 9lF OF CAOFO�� c; 0 0 t n L o EPIC ENGINEERS EXHIBIT'B' W.O. 43.040 CIVIL ENGINEERING. LAND SURVEYING BY: ADL ,co- PLANNING CONSTRUCTION MANAGEMENT DATE: 2/16/2011 ci 101 E.REDLANDS BOULEVARD DEDICATION OF SCALE: 1" = 100' SUITE 146 TELE 909-792 5969 RIGHT OF WAY ::' REDLANDS,CA 92373 FAX 909-792-8869 SHEET: 4 OF 6 ` i BAST RJVE: RSJJDE LAJ\JD C 0 M P A J\J Y i\./l. E3. 6 / 14 4 0 OF RIGHT OF WAY THERLY AS DEDICATED EDICATEDN PER INSTRUMENT O. LOT 80 w 1'�T 'r�� 19970349555, O.R. COUNTY OF SAN = L10 BERNARDINO L11 w w ZLn PARCEL 1 MAIN STREETI2 _ _ _ _ _ COUNTY OF SAN BERNARDINO _ a MAIN STREET COUNTY OF RIVERSIDE 0 ' N (O N ti O G 0 O d O L d N C O N V) LINE BEARING DISTANCE L10 S89"07'08"E 929.91' o L11 S00052'52"W 13.00, o L12 S89°07'08"E 1872.87' Z 1.ANDS = D. p c0 N Uc.No.7721 ~ �f Ejp.03-31-11 �lF OF CAO� o 0 L U (/7 L o EPIC ENGINEERS EXHISIT's' W.O. 43.040 CIVIL ENGINEERING LAND SURVEYING a BY: AOL o PLANNING CONSTRUCTION MANAGEMENT DATE: 2/16/2011 c� 101 E.REDLANDS BOULEVARD DEDICATION OF � SUITE 146 TELE 909-792-5969 RIGHT OF WAY SCALE: 1" = 100' o 1 _! REDLANDS,CA 92373 FAX 909 792-8869 SHEET: 5 OF 6 i i EAST RIVERSIDE LAND 44.00' 44.00 COINJIFAN Y kis), 6/44 LOT 80 SECTION 5 n I TOWNSHIP 2 SOUTH NORTHERLY LINE OF RIGHT OF WAY Z RANGE 4 WEST AS DEDICATED PER INSTRUMENT NO. a 19970349555, O.R. COUNTY OF SAN S,B.M BERNARDINOOe L4 Q a PARCEL 2 _S89°27'35"E � RADIAL O P.O.B.PARCEL 2 I \ � I \ L5 I NIA t PER MAP 844-C ON FILE IN THE OFFICE OF Nio THE COUNTY SURVEYOR OF RIVERSIDE COUNTY JI oI� I O En; NORTH 1/4 4 CORNERCD MAIN STREET OF COUNTY OF I ° " It PER BOARD RESOLUTION DATED SAN BERNARDINO — S89 07 08 E 3.19 /3/1948 PURSUANT TO SUPERVISORS MINUTES BOOK 40, PAGE 239 COUNTY OF RIVERSIDE L1 — — — _ W P.O.C.PARCEL 2 o o z c M W I t PER BOARD RESOLUTION ^ RECORDED 9/11/1952 IN BOOK M Q 1399, PAGES 214 & 215 OFFICIAL o -RECORDS OF RIVERSIDE COUNTY O N V I16 a 0 0 0 a a, fN w LINE BEARING DISTANCE L1 N89007'08"W 67.40' z L2 N00°52'52"E 44.00' AND = L3 N45037'12"E 32.68' �5�0 D. p �.pG o L4 SOO°32'25"W 3.09, G l F o L51 N89°07'08'W 3.02' U i LINE DELTA RADIUS I ARC TANGENT ell C1 90°20'27" 20.00' 31.53' 20.12' * uc.No.7721 Sl EV.03-31-11 �� o 9lF OF CAO o 0 r N ^o EPIC ENGINEERS EXHIBIT V W.O. 43.040sr CIVIL ENGINEERING LAND SURVEYING BY: ADL PLANNING CONSTRUCTION MANAGEMENT o 101 E.REDLANDS BOULEVARD DEDICATION OF DATE: 2/16/2011 SUITE 146 TELE 909-792-5969 RIGHT OF WAY SCALE: 1" = 30' M REDLANDS,CA 92373 FAX 909-792-8869 SHEET: 6 OF 6 CD CALItFORN1A AGENDA REPORT MEETING DATE:. April 26, 2011 Council Item ( X ) CRA Item ( ) TITLE: Letter of Support for AB 66 (Chesbro) Vehicle License Fees PRESENTED BY: Betsy M. Adams, .City Manager RECOMMENDATION: Authorize the Mayor to sign a letter of support, on behalf of the City, for Assembly Bill (AB) 66 to extend the 0.15 percent VLF increase .for COPS (Citizens Option. for Public Safety) programs, booking fee subventions, and county law enforcement programs indefinitely, deleting the current sunset date of June 30, 2010. BACKGROUND: The Vehicle License Fee (VLF) Law, in-lieu of any ad valorem property tax on vehicles, imposes an annuair license fee for any vehicle subject to registration in California in the amount of 1% of the market value of the vehicle for a specified amount of time. Until June 30, 2011, it also imposes an additional tax equal to 0.15%0 of the market value of specified vehicles,. as determined by the Department of Motor Vehicles, to the vehicle license fee to be deposited in the State's General Fund and then transferred to the Local-Safety and Protection Account. From there, the funds are allocated by the State Controller's Office to the counties where the funds are deposited into the Supplemental Law Enforcement Services Fund (SLESF) in each county. Funds from this account provide Grand Terrace with $1001000 for front line law enforcement through the Citizens Options for Public Safety (COPS) program and also cover the City's 50% share of booking fees. DISCUSSION: AB 66 (Chesbro) was introduced as legislation on December 13, 2010 to amend Section 10752.2 of the Revenue. and Taxation Code, relating to taxation, making an appropriation, and declaring urgency with regard to the June 30, 2011 sunset of the 0.15% VLF- increase used to fund local law enforcement programs. As urgency legislation, AB 66 requires a two-thirds (2/3) vote. The bill would repeal the provision relating to the sunset date and maintain 'the current dedicated local law enforcement share of the VLF indefinitely, thereby not relying on an annual appropriation by the Legislature. Three alternative bills [AB 168 (Gorell), AB 192 (Logue) and SCA1x 1 COUNCIL AGENDA ITEM NO. Letter of Support for AB 66 April 24, 2011 Page 2 (Steinberg)] have also been introduced as legislation. The League of California Cities (League) has reviewed these bills and recommends support for AB 66. Staff concurs with .this recommendation because it provides the most certainty to the City to receive these critical local law, enforcement funds on an on-going basis. The League's summary comparison of the four bills is included as Attachment A to this staff report. The League has asked its member cities to send letters of support'for AB 66. The letter staff recommends be sent for Grand Terrace is included as Attachment B.. FISCAL IMPACT: The June 30, 2011 sunset of the 0.15% VLF increase would impact the City's General Fund budget in two areas beginning in Fiscal Year (FY) 2011-12. The first impact would be the loss of $100,000 in COPS funding used to fund over 40% of a patrol deputy position. The second impact would be the loss of State's reimbursement to San Bernardino County for the City's'half (50%) of the expenses associated with the booking a person into the County's jail system. Under Government Code Section 29552, the County is allowed to charge the City for one-half the actual costs, based upon established fees. At this point in time, it is anticipated that this could be as much as $20,000 in FY 2011-12, depending -on whether the County implements a fee increase for booking and also on the number of arrests for the year. Respectfully submitted: Betsy W Adams, City Manager ATTACHMENTS: Attachment A: league of California Cities' Summary Analysis of AB 66, AB 168, AB 192 and SCA1 x 1 Attachment B: Letter of Support for AB 66 (Chesbro) Vehicle License Fees Letter of Support for AB 66 April 24, 2011 Page 3 Attachment A local Safety and Protection Account Funding for Citizens Option for Public Safety(COPS)&Booking Fee Subventions Current Proposals 991(Author) A6 66 and ABx19(Chesbr®) AD 10(Gore11) AB 192(tape) SCAlx f.[Sternberg) Gr^mma�s9ud�tD�ns�l Maintains 0.15 VLF tax extension, along with other taxes,for finny years Protridesa single appropriatron Provides annual state general to fund broadly defined public safety services.State matching MairrtainstheUlFexte�on of$506.4mi1fionto the lo®I fund appropriation 500 nof� fundsvaouldhepravidedafterfrve Summary established forthe original Safety and Protection Account million to the Local Safety funds ldbeio aviilet Local Safety and Protection for FY201112 from the state and Protection Account from Gartaxesensionsunseudget ted Account for 0.15%indefinitely. generalfund for fiveyears,beginninglu}y 1,2011 maintaining funding formula for COPS programs and booking fee subventions from LomlSafetyand Protection Account. Twaarire& a �irred?req Yes,to send to Governor Yes,ta send toGavemor Yes,to send to Governor Yes,to place onballot " - Effective date Upon Goverovessigrature July 1,20fl1'rfsignedby Upon Govemoessignature Day after election ifeamsmajority Governor vote approval •Referred to Assembly •ReferredtoAssemblyPublic' •Referred to Assembly •Governor his stated negotiations status Public Safety and Revenue SafetyCommrttee RevenueandTaxation with Republican members have (as of March 31) Vaxation committees •No hearing date set Committee ended;delaying the speciallune •No hearing datesei Hearing date set for May 2 election indefinitely league position support Watch Watch Watch Source: http://www cacities.org/resource_files/29667 LocalSafetyandProtectionAccountfundingmatrix.pdf Letter of Support for AB 66 April 24, 2011 Page 4 Attachment B The Honorable Mike Morrell -California State Assembly State Capitol Building, Room 4102 Sacramento, CA 925814 VIA FAX (916-319-2'163) Re: AB 66 (Chesbro). Taxation. Vehicle License Fee (As introduced) Notice of Support Dear Assembly Member Morrell: On behalf of the City of Grand Terrace, I write to notify you of our support for Assembly Bill (AB) 66 by Assembly Member Chesbro. This urgency legislation will ensure continued resources for city and county law enforcement to the public safety benefit of the entire state. AB 66 repeals the sunset date on the 0.15% Vehicle License Fee (VLF) increase that has been in place since the FY 2009-10 budget, which removed local public safety public safety program funding from the .General Fund to help alleviate .the state's $42 billion dollar deficit. A current VLF share.provides funding for Citizens Option for Public Safety (COPS) programs, booking fee remediation, and a number of county based programs through the Local Safety and Protection Account. AB 66 does not create a new fee or tax, but simply extends part of one that has already been in effect for the last two,years. Swift action is needed to ensure that we do not lose police officers in our community. As the budget process begins in our city; the level of law enforcement services provided will have to include the possible loss of VLF funding which funds one-half of a patrol officer position. With the serious fiscal challenges Grand Terrace faces in FY 2011-12, there is no possibility of the .loss of VLF funding not directly impacting law enforcement services the city will be able to provide its residents. The benefits of local public safety programs do not start and end at a city boundary. Rather, our local programs are an integral part of public safety for every,person in the state. It is imperative that funding for vital local enforcement programs continues. If you have any questions regarding the importance of this legislation to the City of Grand Terrace, please do not hesitate to contact meat 909-430-2245. Sincerely, Walt Stanckiewitz Mayor cc: The Honorable Wes Chesbro (VIA FAX: 916-319-2101) Assembly Republican Caucus (VIA FAX: 916-319-3902) Senator Bob Dutton (VIA FAX: 916-327-2272) League of California Cities (VIA FAX: 916-658-8240) CALIFORNIA AGENDA REPORT MEETING DATE: April 26, 2011, Council Item ( X ) CRA Item ( ) TITLE: Set FY 2011-12 Budget Workshop Meeting Date PRESENTED BY: 'Bernie Simon, Finance Director RECOMMENDATION: Set Budget Workshop Meeting for May 24, 2011 at 3:30 PM in Council Chambers BACKGROUND.: Generally, the City Council sets a workshop date and time for presentation and .discussion of the .preliminary, budget. Last years' budget hearing date was May 25, 2010. DISCUSSION: The City and CRA face continuing budget challenges due to the economic recession. Staff anticipates that a two hour presentation and discussion maybe.needed. Staff recommends that the,City .Council set a Budget Workshop date and time of 3.30 pm on Tuesday, May 24th, prior to the regularly scheduled meeting in the City Council chambers. Council also has the discretion to set an alternative date and time as needed. Staff would recommend a special meeting date of Thursday, May 26t" 6:00 pm as an alternative date.. FISCAL IMPACT: There is no fiscal impact. Respectfully submitted: Bernie Simon, Finance Director COUNCIL AGENDA ITEM NO.� Manager Approval: .- O Betsy . Ad4ns, City Manager ATTACHMENTS: Calendar May 2011 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Council Meeting 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Council Meeting 29 30 31 Memorial Day April Notes: June S M T W T F S S I M T W T F S 1 2 3 1 2 3 4 5 4 5 6 7 S 9 10 6 7 S 9 10 11 12 11 12 13 14 15 16 17 13 14 15 16 17 1S 19 1S 19 20 21 22 23 24 20 21 22 23 24 25 26 25 26 27 28 29 30 27 2S 29 30 31 e � CALIFORNIA AGENDA REPORT MEETING DATE: April 26, 2011 Council Item (X) CRA Item ( ) TITLE: Public Convenience or Necessity for Issuance of an Off-Sale Beer and Wine License for Stater Bros Market PRESENTED BY: Joyce Powers, Director of Community and Economic Development Sandra Molina, Senior Planner RECOMMENDATION: Direct staff to issue a Public Convenience or Necessity letter to the ABC in support of the license. BACKGROUND On July 27, 2010, the City Council approved the Grand Terrace Town Square Master Development Plan including Development Unit 1, which included the development of the new Stater Bros. Market currently under construction. The existing Market has an existing Type 21 Off-Sale General license, issued by the Department of Alcoholic Beverage Control ("ABC"). Type 21 licenses allow the sale of beer, wine and distilled spirits for offsite consumption. Stater Bros. has applied to the ABC to transfer the Type 21 license, and was informed by the ABC that although it is a premise to premise transfer, the applicant must submit a letter from the City in support of the requested license, referred to as a Letter of Public Convenience or Necessity. Attachment 1 is a letter from Stater Bros. representatives requesting that the City issue the letter. DISCUSSION A determination of public convenience or necessity is required when the ABC determines that there is an "over concentration" of off-sale licenses (Type 20 and 21) Within a census tract. The City is divided into four census tracts. The proposed Stater Bros. is located in census tract 71.06, which encompasses the entire southwest portion of the City (refer to Attachment 2). This census tract includes the entire commercial corridor on the south side of Barton Road between Mount Vernon Avenue and Interstate 215. To determine the number of off-sale licenses that should be issued in a census tract, the ABC uses a simple ratio of one license per 1,250 persons in the census tract. For census tract 71.06, which has a population of 3,979 persons, there should be a maximum of three off-sale licenses and there are currently six (see table below), meaning that there is an over-concentration of licenses within the census tract. However, as this is a premise to premise transfer the number of licenses within COUNCIL AGENDA ITEM NO. g0 Agenda Report Page 2 of 3 census tract 71.06 would remain the same. That there is an over-concentration does not mean that negative or adverse impacts have occurred within the census tract; just that based on the ratio used, there are more licenses existing than mathematically permitted. Also, to provide perspective, it should be noted that the census tract contains a large commercial corridor made up of many retail and convenience stores, and service stations, where ABC licenses are more likely to occur. Existing Type 20 and 21 Licenses Type Business Name Address Primary Owner 20 Grand Terrace Market 12490 Michigan St. Hassan S. Salloum 20 G.T. Shell 22045 Barton Rd. Fahim Saad Tanios 20 G&M Oil 105 22483 Barton Rd. G&M Oil Co, LLC 21 Qwik Stop (Arco) 22087 Barton Rd. Ali M Yasin 21 Stater Bros Markets 55 22441 Barton Rd. Stater Bros Markets 21 Grand Terrace Liquor 22493 Barton Rd. Ramesh M.Patel Type 20 Off-sale beer and wine,Type 21 Off-sale beer,wine and distilled spirits Stater Bros. is a neighborhood market providing a grocery items and services for its customers, including deli, pharmacy and banking services. Similar to other grocery and convenience stores, Stater Bros. provides beer, wine and distilled spirits sales for the convenience of their customers, thereby providing a full-service shopping trip and reducing vehicle miles traveled. FISCAL IMPACT No fiscal impact will occur. The applicant will pay annual business license fees. RECOMMENDATION Staff recommends that the City Council authorize staff to forward a Letter of Public Convenience or Necessity to the ABC (Attachment 3), in support of the premise to premise transfer. Prepared by, 5(� Sandra Molina, Senior Planner Respectfully submitted, ;OaZ4'� d _. Joyce Powers Director of Community and Economic Development Agenda Report Page 3 of 3 Manager Approval: Betsy A Adams City Manager Attachments: 1. Request from Stater Bros. representatives 2. Map of Census Tract 71.06 3. Draft letter to the ABC Attachment 1 Request from Stater Bros. Market f • + � • • • !If FcENE MAR 07 2011 Do March 3,2011 Sandra Molina City of Grand Terrace 22795 Barton Road Grand Terrace,CA 92313 Re: Stater Bros.Market#055 Grand Terrace 22201 Barton Road,Grand Terrace,CA 92313 Grand Terrace Town Square Master Development Plan(TSMDP) Development Unit 1,Site and Architectural Review 07-12 Dear Ms. Molina: Stater Bros. Markets requests the City of Grand Terrace issue a Letter of Public Convenience or Necessity as required by the California Department of Alcoholic Beverage Control. Stater Bros. Markets is seeking issuance of a Type 21 license for the sale of beer, wine, and distilled spirits to remain consistent in the range of products customarily provided to supermarket customers. The development of this project will remain in compliance with the existing Conditions of Approval for the TSMDP project, Development Unit 1 and the California Department of Alcoholic Beverage Control requirements. Should you have any questions, you can contact my office at 909-733-5277 or email me at scott.limbacher@staterbros.com. Sincerely, STATER BROS.DEVELOPMENT,INC. Scott D.Limbacher Vice President Construction/Maintenance SDL/dla cc: Mike Slaton Kathy Saenz Attachment 2 Map of Census Tract 71.06 , , , ' �7 I♦ o,(' opt ".a''% I; :t;::`:,;:.lT'' ....,.�:' I F I` .,..'> , `w>--,.,• US Census Tracts 7� y.�.' off; � ✓ '.":^,__ ;r . ., .;m ... '� �{� Streets �' 1.07 Railroad a,t :�:: -�,a �3.�a:, ,�•�� 'tiz� ftil: �,>�,•�.�, !;v::'„ ':a"" r ,Xc-e �— — 1 City Boundary " i Census Tract — �< - i^ m_ 177 Nl 3Palm>Avenue' ___ i t : 1 .7 y' A e�eer'ry_St.� • . . ... ♦♦ ,.,o ; _ ;.t..: M\,t r 5. r ^ 3 e- _._�—_.—�:__-_�,... .._;_:_.:�.:..:i.,__�t_::.:........�Va`n•eureh Sheet= ___ _ _ _ i'!t'i. 1. li TM i t} N y E r 'i.'. i.Pico Str eek SG ,.. 1.'^L I E '.._s.>..,—,_,ate._...___;.....�. »:i,�.E •` .'__.":,o, .;i.. t . {F > 0 1,000 2,000 4,000 Feet City of Grand Terrace US Census Tracts 2010 General Plan Adopted April 27, 2010, Resolution No. 2010-10 Exhibit 1-4 Attachment 3 Draft Letter to the ABC Community and Economic Development Department CALIFORNIA March 16, 2011 Ms. Verna Joseph Licensing Representative II Department of Alcoholic Beverage Control Board 3737 Main Street, Suite 900 Riverside, CA 92501-3337 Re: Stater Bros. Market located at 22201 Barton Road, Grand Terrace California Dear Ms. Joseph: During their regular meeting of April 26, 2011, the City Council of the City of Grand Terrace made a finding of Public Convenience or Necessity for the Stater Bros. Market undergoing construction at 22201 Barton Road. Stater Bros. Market is a neighborhood market that provides grocery items and services for its customers, including deli, pharmacy and banking services. Similar to other grocery and convenience stores, Stater Bros. Market provides beer, wine and distilled spirits sales for the convenience of their customers, thereby providing a full-service shopping trip for customers and reducing vehicle miles traveled. Should you have any questions please feel free to contact me at 909 430-2218. Sincerely, JOYCE POWERS Director of Economic and Community Development t c: Case file Scott Limbacher, Stater Bros. Market 22795 Barton Road, Grand Terrace, California, 92313-5295 909/824-6621 Fax 909/783-2600 f - -wq:_ J CAILI'FOR NIA AGENDAREPORT MEETING DATE: April 26, 2011 Council Item (X) CRA Item ( ) TITLE: Review of the City's Sign Ordinance Affecting Political Signs PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: Direct staff to proceed with an amendment to the Grand Terrace Municipal Code Section 18.80.160 regulating political signs. BACKGROUND: In June 2010, following a review of Municipal Code Section 18.80.130, Political Signs, the City Attorney recommended modifications to the City's Political Sign Ordinance to make it compliant with State and Federal Law. The legal review was also based on case law created since the adoption of the City's current regulations in 1990. Based on the review, certain sections restricting the length of time for sign display, the sign height above grade, and requiring a City-issued permit for a fee could violate Constitutional rights to free speech. Section 18.80.130 was proposed to be amended in its entirety, and a public hearing was held by the Planning Commission on June 17, 2010 to review the recommendations. The Planning Commission discussed negative aesthetic impacts that may be caused by earlier display of political signs and was informed by legal counsel of issues affecting free political speech. The Commission voted 3-1 recommending that the City Council adopt the new Code Section. On July 13, 2010, the City Council held a public hearing to discuss this matter and determined to not take action at that time; .however, the proposed action is still pending. Staff is seeking direction from the Council as to whether to notice a new Public Hearing of the City Council for review of a revised Section 18.80.130. DISCUSSION: Existing Section 18.80.130 is attached to this report for reference. The sections opined to violate Constitutional rights to free speech because they are far more restrictive than COUNCIL AGENDA ITEM NO.P F . criteria for commercial signs, are as follows: 1. All political signs shall be placed no earlier than thirty days prior to the election. 2. All political signs shall not exceed an overall height of six feet above grade. 3. Requirement for a city permit and filing a sign location map with the City (because the permit fee would restrict persons that were not able to pay the fee). The 2010 proposal previously discussed would remove time restrictions for-sign display before the election, the sign height above grade, and the City permit requirement. The allowable maximum sign size restriction of 16 square feet and the requirement to remove all signs within ten days of the election would remain the same. General Standards for signs (Section `18.80.110) would still be applicable, which prohibit the use of blinking lights and pennants. In addition, all signs are prohibited within the public right-of-way and cannot obstruct visibility. These standards apply to all signs throughout the City. Current. statue does not require Council action on a Planning Commission's recommendation within any certain time frame. The Council may either direct staff to schedule a new Public Hearing, of the City Council, or may choose to direct staff to return to the Planning Commission first. Since the June 2010 review by the Planning Commission, a new member has been appointed, and one member was absent at the earlier hearing. FISCAL IMPACT: The $50.00 permit fee applicable under the current ordinance would no longer be collected under the proposed criteria. There is no other fiscal impact to the City other than staff time and legal review. Respectfully submitted, Owl-_ oy a Powers Director of Community and Economic Development Manager Approval: Bets Adams City Manager ATTACHMENTS: 1. Existing Municipal Code Section 18.80.130 2. Planning Commission Minutes dated June 17, 2010 E . ATTACHMENT NO. 1 GTMC 18.80.130 apter 18.80- SIGNS http://Iibrary:mumcode.com/HIAW ios fl+nevciu I I L .P 18.80.130 -Political signs. Political signs having to do with any issue, ballot measure or candidate in any municipal,state or federal election,or political statements and expressions,shall be permitted in any district subject to the following provisions and any other applicable provisions within this chapter: A. Any person, party or group posting political signs in the city shall abide by the provisions set forth in this section. B. Al political signs shall be placed no earlier than thirty days prior to the election and shall be removed not later than ten days following the date of the election. C. A political sign shall not exceed sixteen square feet in total area for one side. No signs shall be placed in a manner that would obstruct visibility of pedestrian or vehicle traffic. D. Al political signs shall not exceed an overall height of six feet from the finished grade. E. No political signs shall be lighted either directly or indirectly. F. No political sign shall be placed or fixedr to a tree,fence or utility pole and shall not be posted on any public property or in the public right-of-way. G. No political sign shall be posted in violation of any provisions of this chapter;further,the zone enforcement officer or his designee shall have the right to remove all signs placed contrary to the provisions of this section. H. A city permit must be issued for all political signs(candidates or issues).To erect signs, persons or parties must file sign location plans with the city within three days after erection. Each sign must be identifiable as to group or person placing the sign. (Ord.126§Z Exh.A(part),1990) 3/10/2011 8:44 AM lofl C ATTACHMENT NO. 2 Planning Commission Minutes June 17, 2010 I Community and Economic Development Department ' I " (ALIF0RHIA GRAND TERRACE PLANNING COMMISSION MINUTES OF REGULAR MEETING June 17, 2010 The regular meeting of the Grand Terrace Planning Commission was called to order at the Grand Terrace Civic Center, 22795 Barton Road, Grand Terrace, California, on June 17. 2010 at 6:30 a.m.. by Vice Chairman Matthew Addington PRESENT: Matthew Addington, Vice Chairman Darcy McNaboe, Commissioner Robert Bailes, Commissioner Tom Comstock Commissioner Joyce Powers, Community and Economic Development Director Sandra Molina, Senior Planner Cathy Johnson, Temporary Secretary ABSENT: Doug Wilson, Chairman 6:30 P.M.: CONVENE SITE AND ARCHITECTURE REVIEW BOARD/ PLANNING COMMISSION MEETING Vice Chairman Addington convened the Site and Architectural Review Board/Planning Commission meeting. • Call to Order. • Pledge of Allegiance was lead by Commissioner Comstock. • Roll Call: Vice Chairman Addington, Commissioner Bailes and Commissioner Comstock, Commissioner McNaboe present; Chairman Wilson absent with notice. PUBLIC ADDRESS: None. 1. CONSENT CALENDAR None. 22795 Barton Road 9 Grand Terrace, California 92313-5295 • 909/ 824-6621 2. PUBLIC HEARING 2.1 ZONE CHANGE 10-02 APPLICANT: City of Grand Terrace LOCATION: Citywide RECOMMENDATION: The Planning Commission adopts a Resolution recommending approval of Zone Change 10-02 to the City Council. Director Joyce Powers reported this Zone Change is a result of an inquiry received by a potential candidate. The City Attorney's Office has reviewed and recommended changes to Section 18.80.130, which is reflective of State and Federal case law. Director Powers reported the recommended changes before the Commission make political signs less restrictive. She stated that standard general signs provisions would still apply. Director Powers noted an e-mail received from Chairman Wilson. Vice Chairman Addington requested clarification about the section of the code that would not change and how it is related to the provided information. Director Powers responded that the sign code contains a section in relation to general provisions that apply to all signage; this code would still be applicable. Commissioner McNaboe requested clarification that the general sign code governs signs put up in the City and this recommendation would provide details regarding political signage. Colin Burns, City Attorney's Office, stated the intent with this Ordinance is to take away restrictions for political signage that may not apply to other signs, such as real estate or protest signs. Mr. Burns outlined key policies in sign regulation, stating that you cannot give preference for commercial speech over non-commercial speech or others. Vice Chairman Addington asked if sign permits are required for political signs. Director Powers responded that the sign permit requirement has been removed from the code section for political signs. Mr. Burns responded that enforcement of a sign permit is difficult when dealing with political signs; there is the need to allow citizens the ability to have spontaneous political speech. Commissioner Comstock asked for clarification, and Mr. Burns confirmed, that political signs could be put up six moths to a year prior to the election. Commissioner Comstock stated he did not believe that signs displayed six months to a year prior to an election benefit City residents. Commissioner Comstock expressed that political signs should only have thirty days of posting time. He referenced other forms of advertisements, such as mailers, telephone solicitation, television and internet as venues for potential candidates. Commissioner Comstock stated he agreed with Chairman Wilson's written comments. Commissioner Comstock added that as a City, we should have an opportunity to place sign restrictions and is not in favor with the proposed changes. 2 of 4 Planning Commission Minutes-06/17/2010 Mr. Burns stated that the City Attorney's Office could review and amend the code for reasonable time and,placement restrictions on political speech signs. Further discussion continued regarding the proposed amendment and political signs. Vice Chairman Addington asked what consequences would take place should the Commission choose not to more forward with the proposed amendment. Mr. Burns responded a possible immediate consequence could be a lawsuit for the denial of freedom of speech should the City remove a political sign. Mr. Burns provided examples of other freedom of speech and First Amendment matters. Commissioner Bailes stated his concern is regarding the placement of political signs on private property. He asked for clarification regarding placement and size of signs on private property. Mr. Burns confirmed that political signs could be placed on private property. He added that the City could place size restrictions and limit the amount of square footage for signs on private property. Commissioner Comstock reaffirmed his opposition to the recommended changes to the Ordinance. He provided an example of billboard signs with footings would require a;permit and come before the Planning Commission for approval. Commissioner McNaboe asked if it was possible to have a limit of 30 days for posting of signs. She stated event signs are posted a certain number of days prior to the event and she inquired if there would be a concern with restricting the number of days for political sign posting prior to an election. Mr. Burns responded that there is a distinction between signs for a community-based event and political signage. He outlined case law in which such sign regulations were considered too much regulation on freedom of speech; and six months of political sign placement seemed average. Director Powers reaffirmed that the action before the Commission this evening is predicated by an objection received regarding the current Ordinance. Further discussion continued regarding a time restrictions and placement of political signs. MOTION PC 26-2010 Vice Chairman Addington made a motion to adopt a Resolution recommending approval of Zone Change 10-02 to the City Council, as revised. Second by Commissioner Bailes. Motion carries 3-1, with Commissioner Comstock voting no; and Chairman Wilson absent. 3 of 4 Planning Commission Minutes-06/17/2010 4. INFORMATION TO COMMISSIONERS None. 5. INFORMATION FROM THE COMMISSIONERS Vice Chairman Addington requested an update on the new High School under construction. Director Powers reported the scheduled opening for the school is September 2011. VICE CHAIRMAN ADDINGTON ADJOURNED THE MEETING AT 6:55 P.M. TO THE NEXT SCHEDULED MEETING OF THE SITE AND ARCHITECTURAL REVIEW BOARD/PLANNING COMMISSION TO BE HELD ON JULY 1, 2010. Respectfully Submitted: Approved By: Joyce Powers atth Addin . ' Chairman Community and Economic PI ing Commissio Development Director 4 of 4 Planning commission Minutes-06/17/2010 � r ` CALItFORNIA AGENDA REPORT MEETING DATE: April 26, 2011 Council Item (X) CRA Item ( ) TITLE: Review option of selling cellular site leases at the following locations: Richard Rollins Park and Grand Terrace Fire Station #23. PRESENTED BY: Richard Shields, Director of Building and Safety /Public Works RECOMMENDATION: Review the concept of selling City owned cellular site leases and provide direction to Staff. 1. Continue to market City owned cellular site leases located at Richard Rollins Park and Grand Terrace Fire Station #23, and submit all offers for review by the City Council, or 2. Discontinue the effort of selling the current cellular site leases. BACKGROUND: The City of Grand Terrace currently owns a lease agreement with T-Mobile for a cellular site located at Grand Terrace Fire Station #23. The City also owns a cellular site which is managed by Site Management Services (SMS) located in Richard Rollins Park. The Richard Rollins Park cellular site is leased to Verizon through SMS. The City was approached by Unison Site Management with offers to purchase the City owned cellular site locations. The offers from Unison include a perpetual easement of additional 15 feet of land adjacent to the existing ground space with a promise of a 50/50 split in future rents. Unison expressed urgency in the sale of the leases because of new satellite technologies that are on the horizon. The new technology could possibly reduce the need for redundant cellular site locations. COUNCIL AGENDA ITEM NO. C) Staff consulted with "Steel in the Air' (SITA) which is a company experienced in conducting reviews of cellular site locations and real-estate transactions related to cellular site offers. SITA has reviewed the offer from Unison and found that it would be beneficial to the City to solicit other offers from companies that provide the same services. SITA also suggested that the City not sell the cellular site and if we decided to move forward, not to entertain a perpetual easement with the sale of.the site. Staff has attached the report from SITA for City Council's review on the pros and cons of selling the City's cellular site leases. See Exhibit "K. DISCUSSION: Pursuant to recommendations of SITA, Staff has solicited offers from four other lease buying companies. Three offers have come back that are higher than the Unison's offer. If City Council approves Staff to move forward, Staff will be contacting Unison's representative to provide another chance to offer on the cellular sites. Once the offer returns, Staff will review all offers and bring them back to City Council for direction. There will be a chance to discuss any further preferences City Council may have before making a decision whether to sell the cellular site lease agreements or maintain them as is for a longer period. FISCAL IMPACT: The selling of the cellular tower lease agreements would benefit the general fund in fiscal year 2011/2012 anywhere from $200,000 to $364,000 dependant on which offer is accepted and how the City will determine payments terms. The future funds collected can be a one-time payment or multiple payments spanning over numerous years. If the cellular site leases are sold, the revenue loses for selling the leases amounts to $36,100 per year. Respectfully submitted, R' hard Shields Director of Building & Safety/ Public Works Manager Approval: Betsy . Ad ms City Manager ATTACHMENTS: Steel in the Air, Letter. ' Exhibit "A, VA 16001 Waterleaf Lane • Fort Myers, FL 33908 JIM' Office: 877-428-6937 Fax- 866-335-4053 STEEL IN TAT AIA.INC City of Grand Terrace c/o Matt Wirz 22795 Barton Road Suite B Grand Terrace,CA 92313 RE: Unison Proposal to Purchase SMS and T-Mobile Leases in Grand Terrace,CA February 20,2011 Dear Mr.Wirz: Steel in the Air,Inc. (SITA) is pleased to provide the following assessment regarding the proposed buyout of your leases by Unison Site Management. We believe it is helpful to start with a summary of the options available to you in reference to buyouts. I. History and Makeup of Lease Buyout Industry The lease buyout industry commenced as a project for AT&T whereby they attempted to prepay some of their cell site leases. This grew from one company to a number of companies looking to acquire leases as other groups saw the success and looked to emulate it. There have been six main companies that have purchased leases in the last few years. The multiples below are used in the industry in order to compare offers made on varying rental rates. The multiple is calculated by dividing the offer amount by the monthly rental amount. UNISON SITE MANAGEMENT-"Unison"(www.unisonsite.com) Unison historically has offered 95 to 135 times the monthly lease rate being paid to the landowner. In return they request a perpetual easement on the property around the existing cell site lease area.They used to agree to 30-year easements,but that has changed in the last two years. Unison typically asks for more area than the current lease provides. Their motivation is simple-if the existing tenant needs additional space;they get the revenue even though they haven't paid anything more for it. They offer to split future revenue 50/50,but this is an empty promise as the landowner would have received 100%of that revenue otherwise. Please note that Unison's offer to market your site is not that valuable in our opinion-they are unlikely to add tenants to your site that would not otherwise find you directly. They use this claim to get landowners to sign their agreements. In early to mid-2010,Unison's offers were around 85-95 times the monthly rent,but because their competition has picked back up in recent months,offers have increased in the last two months to an average of 95-105 times the monthly rent with some offers as high as 115 times. WIRELESS CAPITAL PARTNERS-"WCP"(www.wirelesscapitai.com) Wireless Capital Partners shut their doors on Sept 23,2008. Wireless Capital Partners used to offer 90 to 125 times the monthly lease rate being paid to the landowner. A landowner told us ------------------------ ------- ---- in October 2010 that they had received an offer from Wireless Capital Partners so it is possible that they are now active again. We don't know how attractive their offers are. COMMUNICATIONS CAPITAL GROUP-"CCG"-(www.comcapgroup.com) CCG is remarkably similar to Unison and not without cause. CCG's founders came from Unison and Wireless Capital. Their offers are similar in form and amount to Unison's with the exception that they will purchase as little as a 10 year term. CCG stopped making offers for a while after they lost their funding from the Royal Bank of Scotland. They have a new funding source and have recently started making lease buyout offers in the last few months. Most offers are around 95 times,although they seem flexible with the length of purchase and the revenue sharing. Recent offers have been around 100 to 105 times the monthly rent with some exceeding 110 times monthly rent. LANDMARK DIVIDEND: (www.landmarkdividend.com) Landmark is an offshoot of people who previously worked at Unison,Wireless Capital,and CCG. They have been competitive with Unison in terms of the lump sums paid. They also have a one page purchase agreement which they claim is better for the landowner. Landmark seems more flexible on terms and conditions for their lease purchases,and will agree to purchase just the lease area itself. AP WIRELESS INFRASTRUCTURE PARTNERS: (www.apwip.com)-We have seen a few offers from them and it appears they are offering between 80 and 120 times the monthly rent for a perpetual easement. The people at WIP used to be from RFS Capital. MD7-(www.md7capital.com) Md7 is an entity that works as a "lease optimization company"whereby they approach landowners with leases and attempt to pre-pay a certain number of years'worth of rent at a discount. Typically they would pay between 70-90 times the monthly rent.The good thing is that Md7 does not take an easement and the agreement is much simpler. Furthermore,they won't take any additional space. Md7 is only interested in T-Mobile and US Cellular leases. The third party buyout market is in a transitional period. As recently as two years ago,the average multiple for all the 3`d party buyout companies above was 114,with offers as high as 144 times the monthly rent. Because most of these companies exist solely to purchase the leases,bundle them together,and then resell them as a package;and because many of the companies were having difficulty procuring capital,nearly all the companies shut their doors,reduced,or otherwise stopped making offers. Unison had the lease buyout market cornered,and accordingly began reducing their offers to 85- 95 times the monthly rent. However,the lease buyout market has improved in the past year,specifically in the last three months. Accordingly,Unison's offers have increased because the competition field has opened up again. SITA has seen not only a resurgence of interest from new companies like Landmark and APWIP,but from the existing companies like CCG as well. In summary,you now have options if you wish to sell your lease. The final offers between the companies are usually similar in dollar amount,but the landowner can choose the length of the buyout (usually 25 years to perpetual). Additionally,the landowner does not need to make undue concessions to the buyout companies. These concessions include the expansion of the existing lease area and liberties with the use of the site and giving up 50%to have someone market your property. II. General Risk of Termination Many landowners we consult ask whether there is a risk of technical obsolescence on these towers. It is our general opinion that terrestrial based tower networks will not be obsolete within the next 10—15 years,and will fairly likely last considerably longer than that. Furthermore,is our belief that there are other wireless technologies that will increase the need for towers,at least during the next 10 years. These include wireless internet,satellite radio repeaters(many of our clients don't know that satellite radio actually relies on towers in more urbanized areas),and new voice and data services. We often get the question of whether everything will just go to satellite in the future. The short answer to this question is that it is not likely,primarily because of two reasons. First,the distance between a satellite phone and a satellite is significant enough to cause a lag. While that lag is present on cell phones as well,it is nowhere nearly as pronounced. If you have used a satellite phone,you know it is common to have a%second delay between when you start talking and when the other party hears you. Secondly,the power required to transmit from the phone to the satellite is substantial as compared to a cell phone. Thus battery life is a significant hindrance to widespread use of satellite phones because it requires a sizeable battery to get any amount of battery longevity from a satellite phone. The greater risk of termination to the average cell site comes from two things: 1. Termination due to Consolidation: There is and has been the possibility of consolidation between carriers. In the last three years,the industry has had a number of large mergers. AT&T/Cingular,Sprint/Nextel,and Verizon/Alltel to name a few. In each of these cases,some cell sites have been terminated or will be terminated as a result of duplication. In the case of AT&T and Cingular,approximately 6500 cell sites out of 50,000 combined sites(14%)were terminated. Additionally,Sprint has announced a plan to terminate 20,000 of its 66,000 sites due to its merger with Nextel. Future consolidation could create further redundancy,thereby increasing the risk that a specific cell site might no longer be needed. The latest rumor of consolidation involved T-Mobile's potential purchase of Sprint,as T-Mobile announced earlier this year that they had hired an investment bank to review the possibility of acquiring Sprint. 2. Termination due to Optimization: While there is no technology that we are aware of now that will make cell towers obsolete as a whole in the near and mid-term future,there are technologies that could increase the effectiveness of individual cell sites,making some expendable. Increases in the capabilities of"smart antennas"could extend the range of cell sites or make them capable of handling calls differently depending upon the time of day. Increases in base station equipment efficiency(the equipment that handles the calls at the cell site)could increase capacity,thereby reducing the number of cell sites necessary for the operation of the network. In general,we don't believe that optimization will cause a significant termination of existing cell sites. In fact,we suspect that optimization of networks will increase the number of cell sites substantially in the future. Some estimates that we have heard have suggested a threefold increase in the number of new cell sites. However,many of these cell sites will be not be traditional macrocells(Verizon and T-Mobile's sites in Grand Terrace are macrocells). New smaller cell sites such as picocells or femtocells(see http://en.wikipedia.org/wiki/Microcell and http://en.wikipedia.org/wiki/Femtocell)will increase the flexibility that the carriers have in deploying their networks. The carriers may find it easier and cheaper in the future to work around problematic or expensive sites. We don't believe that the average landowner should factor optimization into their decision of whether or not to sell, although there are situations where optimization might cause termination for existing owners in unique circumstances. This is especially true in rural areas or suburban areas without taller buildings or structures. Below we will address the risk to your specific sites as appropriate. III. Pros/Cons of Lease Buyouts PROS 1. The primary benefit of agreeing to a lease buyout is that the landowner eliminates the risk of the lease terminating over the number of years that are prepaid. For instance,if the wireless carrier or tower company is willing to pay 96 months(or 8 years)worth of rent,and the lease was terminated in that 8 year period,the landowner would be better off having taken the lump sum today in most cases. In some cases though,it is possible that the lease that is terminated may be replaced by another lease from another wireless carrier. 2. A secondary benefit to a lease buyout is possible if the landowner takes the revenue from the sale and places it in another investment that gives a better return than what the landowner would have received from simply getting the regular lease income. Because the lease buyout companies are heavily discounting the future revenue stream(12-17%)this is hard to do without an investment with a high ROI-return on investment. 3. Lastly,if the property owner intends to sell the property in the short term,it may make sense to sell the wireless leases separately. Traditional commercial and residential purchasers of property look at the liberal termination rights vested to the tower company in most wireless leases(typically 30-90 days),and will not pay a fair value for the lease. The lease buyout companies have the ability to leverage the risk that any one lease will be terminated against the other thousand they own. Accordingly,they typically pay more than the landowner would receive from a normal purchaser of the property. CONS 1. The primary reason that these lease buyout offers are not good ones to move forward is that they often fail to fairly value the potential to increase the lease rate at the expiration of the lease. This is particularly true in leases of lower lease rates(below$700/mo),in leases where there is some type of revenue sharing for additional subleases,or for towers where there are multiple tenants using the tower. 2. The length of the lease buyout can also be a negative factor. These lease buyouts bind the landowner for a longer period of time than typically remains to the end of the lease. The landowner is,in essence,taking a reduced present value of the lease and in exchange is giving up a longer obligation on the property. This is especially true for perpetual easements. We advise all owners considering a lease buyout to evaluate the future use of their property and whether the placement of a tower on the property for 30-40 years would impact that use significantly. If you enter one of these buyout agreements,you could be limiting the redevelopment of your property. 3. Companies like Unison require a larger footprint than the current lease areas provide. They do this for two reasons. If another wireless company approached you for a ground lease within the expanded footprint,the buyout company would get 50%of that additional revenue. They also do this to insure that they receive a portion of any additional rent in the event a current carrier needed to expand its ground space. However,the buyout companies don't pay a premium for these rights,so essentially you are giving up something for free. Do not be persuaded by the lease buyout company salespeople who suggest that they will market the property. Their "marketing"efforts consist of placing the site on a list and distributing the list. The likelihood that they will successfully add a wireless carrier to your tower that would not have come to you directly is very small. 4. In some cases,there is a possibility that if an existing tenant terminates their lease,you could potentially replace it with another lease. However,if you have sold the lease,the lease buyout company can negotiate with the new company at a higher rate than what you are currently receiving and keep the difference. IV. The Subject Sites In the case at hand,T-Mobile pays$2,069/mo with a 3%term escalation annually. SMS pays$1,000/mo as a revenue share for Verizon's presence at the site under the management contract you have with SMS. The chart below shows come comparable leases for your area;they average$1,455/mo. Your lease escalations are average,with most leases SITA reviews having a 3%annual increase. The leases below are within a 40 mile radius of your sites. Grand Terrace Lease Comparables7. Location Carrier/Company Monthly Rent Hesperia Verizon Tower $900 Big Bear City T-Mobile Tower $1,300 Moreno Valley Verizon Stealth $1,910 Perris T-Mobile Tower $1,500 Mission Viejo AT&T Rooftop $1,400 Irvine Verizon Rooftop $2,500 Irvine Sprint/Nextel Stealth $1 644 Tustin T-Mobile Tower $1,000 Santa Ana Sprint/Nextel Tower $1,050 Stanton I Sprint Stealth 1 $1 500 Santa Ana T-Mobile Tower $1,300 The subject sites provide coverage to a significant area of Grand Terrace,including a stretch of Riverside Freeway(1-215). Also included in the coverage area are numerous residential and commercial properties in the surrounding area. The map below illustrates the varied types of properties and streets the subject sites cover. '- '>,r`a'"_�S-'�-'a..;. �.> f�* - �.��•''.-p [ -.�'r`'j�„�rn,ri I�: :. 1�, �..��; �".�+Y:+/,/t Uy�-. S Specific Risk of Termination The map below shows the closest tower sites in our database. There are several sites in the area, represented by yellow pushpins. The Nextel rooftop was not visually confirmed. The nearest T-Mobile site we found is a 57'monopole 0.81 mi west. This T-Mobile site is too far away to provide similar coverage to the City's T-Mobile site. Although there are several towers in the area,the high daytime traffic of the area and the carrier's growing need for additional capacity for data make the subject sites valuable and unlikely to be terminated in the next 5-10 years. 57'T-Mobile Monopole y 96V c' � "�� - � ��.µ0 6mnd Terrace ,n '• - '` ©anon RI _ P—m A- Nextel Rooftop City Center T•Mobile Site a Irare<.vn:t y y La Pai.5, - � Jenwn C, '*F 64'Crown Castle c' I.a P+•5t a 28'KGI lower Monopine with Sprint 8 Lh smosr .p sn-0 St Qa B—y SS n On 2.pry Ss Y4w..57 ri T'City's Verizon Flagpole $ 40'ATBT(Formerly Cingular) - 2 - —•'- Monopole Ttl h S, s 91wi^J�a is Van Btrran 57 E n Q :] �+ �' Koncrkf St m U` fart Sr 74'American To Site nco S: o P.s: 0 N Q We also reviewed the City of Grand Terrace Zoning Code and Zoning Map to see if there were options available to the carriers should they decide to terminate the sites and find an alternate location. According to our research(please review the zoning map below),it would be impossible to get a tower approved at a similar height near this site. According to section 18.71.050 of the code,"no ground mounted structure...shall be located on a lot with an existing residential use,within one hundred feet of any residential use...or in the Barton Road specific plan village commercial district and administrative professional district." Essentially these criteria give city property a monopoly within the immediate area. There are no structures in town over three stories upon which to install rooftop equipment,and towers aren't allowed in residential or the surrounding zones. For T-Mobile sites,the main risk of termination is usually a merger between or among carriers. The most probable merger would be one Sprint and T-Mobile,and we estimate that there is a moderate chance of such a merger occurring in the next few years. SITA believes that the combined company would look to a common technology that would enable removal of duplicative leases(Most likely CDMA migrating to LTE). If this merger was to occur,it is likely that within 3-5 years of the merger consummation,that the combined company would begin looking to terminate some of its leases. However,the closest Sprint tower is still too far away to provide comparable coverage,and in the event of a merger,we believe that the T-Mobile site would be needed and that two of the three T-Mobile, Nextel and Sprint sites to the west would be terminated. For the SMS flagpole,Verizon is currently the only carrier using the site. However,SITA believes there is a moderate chance of collocation at this site. If another carrier came on to the site,then the stability of this lease would increase,and the risk of termination would be significantly less because SMS would be making more profit from the tower. You would also receive 50%of the rent from the additional tenant. The likelihood of Verizon merging with another major carrier is low due to antitrust issues. Even if Verizon were to merge with another company,they would likely still need the site in order to provide capacity for the 3G and 4G applications and the growing demand for wireless data. ____._ y 4F-?..,n } s's — - Erpryp r yr'-."Wu. `:'- ' te � �`1 L`--.� �^- _ `R''• - '�' _ '3��'�'Tzy; �''vT:n:=„�; r-T r.��r+�.. l 1 $� �.�✓,'�r, C^�'�Yx;f, .,z3.;�-.,` - ,�c�`' v`` \.�cR-' '•'\�;�Pa'" �,.Nr�.`�. .�! ��7 .' 'k..�._L1[R1URfAlf —.•y+,S��J�{ i__� j `•' }✓h` N.' _ -_ '1� e �ynsk._t;�r.,- �-;:,-; �yi'd(1i.�3`�"h�.: ,_ �_ - ; _ J C'.io eor� � •I_'_',rifri%c 1,'_= '- :_F.____: ,K: 4 - r 4' 1 i i -tJ• - _f_ J.{`�. r F..Y 7- i oNan �r� aaar Nan 97uYTON ROAD . {r...c-a -- -�= `+ - <"ci - - -Y7'' lY S. _1 J 1 L•.�,i - I,-� 4,• F ' 4.-. 1 1 P O -a ?- �' r»g'€. �s�L�w� f �� F •�Sa /f S j _ .- _ _ � ,� �Er 1�eiE foiu TrlirE�' ._•i,. �_ tci r�nrffr e• ____ __.Leetwriracer _..___ ._ ._,—,__� _ _ __ _ {"•yz�,i?��_,,,+�;�r. 4 .rarEr T_.. `��} I __ ' IRi _m+€r+i,;l 3 .- I -_-��!_•' -..'. '- �.� may:"-_.,+ `NF" �'i,"' _ vac- - , t _- 'MAN{{fI2Ff' T _ �';r*'iT'.��izls��.�F� `.v• `::i :,.-i 2,,>.°h"�ssWa` d.,�=1s �' _caanaa.:rnFtr--ey_ i Mir c -_ - ___ � :.,c?h%.'.,i i[�rc• k-._... .__._Ii r-1 ._I. ±._ - _ _�•_.:.� �,~ RH-Hillside Residential ice^_ I RI-10-Low Density Single Family R1-20-V.Low Density Single Family [�RI-7.2-Single Family _j R2-Low Med.Density Residential R3-Medium Density Residential R3-S(Multiple Family-Senior Citizen) BRSP-General Commercial _ BRSP-Village Commercial BRSP-Office Professional i AP-Administrative Professional Will C2-General Commercial .; CM-Commercial Manufacturing EM MR-Restricted Manufacturing RM 1142-Industrial PUB-Public Facilities FP-Floodplain Overlay District !;,t AG-Agricultural Overlay District V. Unison's Offers and Competing Offers Unison is offering to purchase the T-Mobile lease revenues and ground easement in perpetuity for $175,865 and the SMS lease revenue for$85,000.Each offer equate to 85 times the monthly rents. As late as September of 2008,Unison would have paid$248,280 or more for the T-Mobile site and $120,000 for the SMS site(120 times the monthly rent). Furthermore,they would have been willing to purchase the lease area for a 30-year term instead of a perpetual easement exclusively,and would have agreed to not taking part in future revenue from additional ground space. Because lease competition has opened back up,we believe you could and should solicit competitive offers from the other lease buyout companies. We also specifically dislike the requirement that the lease is purchased in perpetuity. It is possible that at the end of the lease that you might prefer that the equipment were no longer there. Under the Unison agreement,you wouldn't have that option until the site was not in use for 3-5 years. Abetter arrangement would be to only sell a fixed term easement such as 30 or 40 years. Based upon recent offers,for the T-Mobile site we believe that you will be able to get offers for 110 to 115 times the monthly lease rate or$227,590 to 237,935. For the Verizon lease,we believe that you should be able to get$110,000 for the current lease payments. We strongly recommend against selling the future revenue sharing rights with the Verizon revenue share. In fact,if you can't procure an offer that only includes the Verizon revenue share,we would strongly recommend against selling at all. Please note that the SMS lease has an exclusivity clause whereby SMS has the exclusive right to market the property,a clause which may make the City in breach of contract should you sell to a 3rd party buyout company. Please contact your attorney about this clause before signing a buyout agreement. 3. L•stautiicif�°. Lar.dlur l_r tnt?Ir<'(cnr,ra the e•<ausiv-ri_Yht:o mai ket die Laudlore-s Propem:.end tc� ubletse i,r i:cc�sr Put1iun of th%1'r:tusc .[c�ti^,eiss :.u:nm[:rt atiun> t;niPanirs nr cipe.amar:fnr r[trroscs O?comdu tmn. X V,el,S or r:ic[o dint-jiumca[luns irotn or en he L?niiior.S Grc,re,;t titrpla't[l tl[c'rCrrFi�aA_I 4nl'liltt�ni i�i thls lcrcrntent.La:rsiut�l siiaN;eyutre an•r ana sli t"untr;P_[ential to[reh7;3 t��ntn;utue;:Einns tcn::nts nr lir�asees to tletzlttta:a uud Cr:[ct at[u St..bluase of,iczmtsc am: cnt•�tr�with Tcn:ira Please also note that the Unison offer on the SMS revenue says it is for a Verizon rooftop. You should clarify with Unison that this isn't a rooftop. VI. Recommendation It is our recommendation that you do not sell the leases at this time. The main reason we believe this is that both leases are secure for the next 10-15 years and that the offers as proposed(or that will likely be proposed even with competitive bidding)are too greatly discounted as compared to future cash flow. If you do choose to sell,we suggest selling the T-Mobile lease but keeping the SMS lease. If you must sell both sites,we suggest selling the T-Mobile lease to whichever lease buyout company would pay the most for it with the best terms. On the SMS lease,you should sell to the company that offers the best price but who will not take any revenue sharing. The key to both transactions will be getting the best terms at the price currently on the table or slightly higher. That is,we suggest that you shop around and see what Unison's competitors can offer for the sites-including WIP,CCG,and Landmark Dividend. Their contact information is listed in the introduction. They may be able to beat the offer,but with a 30 or 40 year easement instead of a perpetual one. Let each of the companies know that you have received an offer for Unison on the site that includes a lump sum and 50%revenue share for future collocations. Do not disclose the specific amount of the Unison offer. Let the companies know that you will be asking for offers from at least three other companies. Mention that you do not like that Unison is requesting additional land,wants to share in the revenue sharing on the SMS lease,and that you do not want to give the leases up for perpetuity. Ask each party who will pay the closing costs on the transaction and figure that into the final offer for comparison. Specifically,see if the other companies can match the Unison offer for a fixed length of time(30 years) and without adding additional ground space or taking any revenue sharing that Unison is requesting. This is especially important because if one or more carriers wanted to collocate onto the tower,you would receive 50%of the revenue of the SMS lease. For the T-Mobile lease,you would likely be entitled to additional rent for the expanded footprint if they needed space outside their current lease area of 450 sq ft. SITA estimates that you could receive$400/mo to$600/mo for every 200 square feet that T- Mobile or another wireless provider needed. There is no need to give up that space for free. In short,because of the resurgence of competitors in the lease buyout market,SITA believes you could get better terms along with a higher offer than what Unison is currently putting on the table. Contact us when you receive the offers from the competitors,and we will gladly review those proposals. Please don't hesitate to contact us with any questions. Sincerely, Ken Schmidt President- Steel in the Air,Inc. .J CALIFo•RNIA AGENDA REPORT MEETING DATE: April 26, 2011. Council Item (X ). CRA Item ( ) TITLE: Implementation of Accumulation Program for Part-Time and .Limited Service Employees (APPLE) Plan PRESENTED BY: Betsy M. Adams, City Manager RECOMMENDATION: Adopt Resolution No. 2011- adopting the APPLE Plan to provide retirement -:benefits to part-time and temporary employees of the City in lieu of coverage under Social Security and authorize the City Manager to sign documents necessary,to implement the APPLE Plan. BACKGROUND: Section 1132 .of the .Omnibus Budget .Reconciliation ACT of 1990, Internal Revenue Code 3121, and California Government Code Section 53216 provide for local governments to establish a pension plan covering employees on a compulsory basis. The City has such a plan, California Public Employees' Retirement System (CaIPERS) for full-time and some part-time employees. For other part-time employees (typically Work less than 20 hours per week) and temporary employees, the retirement .plan is Social Security. When the City Council adopted .the Section 1.25 Flexible Benefit Plan Adoption Agreement on February 8; 2011, Keenan & Associates (Keenan) was designated as the City's- broker of record. Through Keenan, the City is eligible to participate in MidAmerica .Administrative Solutions' APPLE Plan as an alternative to Social Security. DISCUSSION: To reduce on-going expenses, beginning July 1, 2011 the City's employees in CaIPERS agreed to pick up .an additional 3.627% of the employee portion of this retirement plan bring the total employee. contribution to 6.527%%. .This will fully offset a CaIPERS. rate increase next fiscal year which would have .impacted the General Fund by $52,500. While implementing the Section 125 Flexible Benefit Plan Adoption Agreement, staff became aware of the.APPLE Plan available through Keenan which would provide an additional $7,126 in -on-going retirement savings for General Fund for the City's part- time and temporary employees currently in Social Security (primarily Child Care employees). COUNCIL AGENDA ITEM NO. � Implementation of APPLE Plan April 24, 2011 Page 2 The employee contribution (principal) into: the Apple Plan, which is compulsory, would -be 6.2% of earnings and is fully guaranteed. Interest rates are set annually with the -2011 interest rate guaranteed, to be .3.0% net of .plan costs. There would be ,no employer contribution to the APPLE Plan which is: how the $7,126 savings is derived. The City would "pick up" the employee contribution to the APPLE Plan such that the employees the would be able to pay the 6.2% contribution on a pretax basis as permitted under Internal Revenue Service (IRS) Section 414(h)(2).. In addition to on-going savings for the General Fund, the APPLE Plan would provide the -following advantages for'part-time and temporary employees: Immediate 100% vesting ■ Pre-tax contributions would increase take home pay ■ Tax-deferred growth on contributions Tangible asset versus Social Security Medicare-would not be affected ■ Annual account statement mailed to participant's home ■ 24/7 participant service via web (e.g. statements, forms) ■ Portability to.other qualified retirement plans Keenan has offered MidAmerica Administrative Solutions' APPLE Plan to its clients since 1991. Mid America Administrative Solutions is a leader in alternative, to Social Security programs for government employers, serving .over 500,000 public sector employees throughout the United States. .FISCAL IMPACT: Implementing the APPLE Plan in lieu of Social Security would provide $7,126 in General Fund budget savings for. Fiscal Year 2011-12. Members of the City Council and.the Planning Commission, who are classified by the IRS as employees though they serve in the roles of elected officials and appointed officials respectively, represent 24.5% of the savings. Respectfully submitted: .Betsy, . Adams, City Manager ATTACHMENTS: Attachment A: Resolution of the City Council of the.City of Grand Terrace Adopting the APPLE Plan to Provide Retirement Benefits to Part-Time and.Temporary Employees of the City in Lieu-of Coverage Under Social Security Implementation of APPLE.Plan April 24, 2011 Page 3 RESOLUTION NO. 2011- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, ADOPTING THE APPLE PLAN TO PROVIDE RETIREMENT BENEFITS TO PART-TIME AND TEMPORARY EMPLOYEES OF THE CITY IN LIEU OF COVERAGE UNDER SOCIAL SECURITY WHEREAS, Section 11332 of the Omnibus Budget Reconciliation ACT of 1990 ("OBRA `90") extends Social Security retirement benefit coverage to employees of state and local governments who are not covered by a state or local retirement system and subjects the employer and employee to Federal Insurance. Contributions Act ("FICA") taxes on the employee's wages; and WHEREAS, OBRA '90 excludes from the requirement of Social Security coverage.governmental employees who are covered by a compulsory retirement system of a state or local government; and WHEREAS, California Government Code section 53216, et seq., authorizes a City to establish and fund a pension Plan covering its employees on a compulsory basis; and WHEREAS, certain part-time city and temporary city employees not covered by a bargaining unit of the City of Grand Terrace and are not currently covered under any other retirement program through the City or the State of California in lieu of coverage under. Social Security, as permitted byOBRA '90; and WHEREAS, the Council desires to adopt a compulsory. retirement Plan, qualified under section 457 of the Internal Revenue Code of 1986 ("the Code"), for the part-time city and temporary city employees not covered by a bargaining unit of the City in lieu of providing coverage under Social Security, as permitted by OBRA '90;and WHEREAS, Code section 414(h)(2) permits the City to pick up the employee portion of contributions to a section 457 Plan and to treat them as employer contributions; and WHEREAS, "picked up" contributions are not taxable to the employee until distributed; and. ` Implementation of APPLE Plan April 24, 2011. Page 4 WHEREAS, the .Council has reviewed the Accumulation Program for Part-time and Limited-service Employees (the "APPLE Plan") provided by Keenan & Associates; NOW, THEREFORE, BE IT RESOLVED that the Council does hereby adopt the City of Grand Terrace APPLE Plan to provide retirement benefits to part-time and temporary employees of the City in lieu of coverage under Social Security, to be effective May 1, 2011. FURTHER RESOLVED, that the Council hereby designates the City as the Plan Administrator-, FURTHER RESOLVED, that the Council -hereby designates the City as the Trustee of the Plan; FURTHER RESOLVED, that the Council hereby authorizes MidAmerica Administrative Solutions (".MidAmerica"), to execute, on behalf of the City, the APPLE Plan and any other documents necessary to carry out the provisions of the APPLE Plan; FURTHER RESOLVED, that the Council hereby authorizes MidAmerica to enter into contracts with Keenan & Associates to provide ongoing administrative consulting services in connection with the operation of the Plan; -to arrange funding. of the .Plan through a funding company; to communicate the Plan to eligible employees of the City; and to perform related services in connection with the APPLE Plan; FURTHER RESOLVED, that the Council has determined that it is appropriate for the City to ,pick up the employee portion of contributions to the APPLE Plan in order to afford.participants the tax benefit provided by section 414 (h) (2). FURTHER RESOLVED I. That each participant of the Plan shall make contributions to the Plan on a pretax -basis. Such participant contributions shall be treated as employer pick up contributions, as permitted under IRS Section 414(h)(2), and allocated to that participant's account. II. That employees shall not have the option of choosing to receive the contributed amounts directly instead of having them paid by the City to the APPLE Plan. Implementation of APPLE.Plan April 24, 2011 Page 5 III. That the City shall pay to the APPLE.Plan the contributions designated as employee contributions from the same source of funds that is used to pay employees' salary. IV. That the amount of the contributions designated as employee contributions and paid by the City to. the APPLE Plan on behalf of an employee shall be the entire contributions required of the employee under the Plan. FURTHER RESOLVED, that the appropriate City officials, as designated by the City Manager, are hereby authorized, empowered and directed, in the name and, on behalf of the City, to,execute such documents and instruments and to take all such other and further .actions as the official .or officials so acting may deem necessary or appropriate to carry out the purpose and intent of the foregoing resolutions. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace.at a regular meeting, held on the 26t", day of April, 2011. Mayor of the City of Grand Terrace Attest: City Clerk of the Cityof Grand Terrace I, ,BRENDA :MESA, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No. 2011- was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 26th day of April, 2011, by the following vote: AYES: NOES: Implementation of APPLE Plan April 24, 2011 Page 6 ABSENT: ABSTAIN: Brenda Mesa, City Clerk Approved as to form: City Attorney R• i CALIFORNIA AGENDA REPORT MEETING DATE: April 26, 2011 Council Item (x) CRA Item ( ) TITLE: Omnitrans College Free Pass Pilot Program. PRESENTED BY: Richard Shields, Director of Building and Safety/Public Works RECOMMENDATION: Enter into an Agreement, Exhibit "A", with Omnitrans for one- year participation to assist with a College Free Pass pilot program for Grand Terrace College students attending California State University San Bernardino, Chaffey College, Crafton Hills College and San Bernardino Valley College in the amount of$5,775.00. BACKGROUND: Omnitrans is partnering with California State University San Bernardino, Chaffey College, Crafton Hills College and San Bernardino Valley College to implement a College Free Pass pilot program for the 2011-2012 academic years. Attached as Exhibit "A" is a letter dated March 25, 2011 from San Bernardino Community College District supporting the efforts of Omnitrans Free Pass pilot program. With support of the Omnitrans Board of Directors, Omnitrans is reaching out to the JPA members to help fund a one-year pilot program by requesting dedication of a portion of the AB 2766 Subvention Funds revenue. AB 2766 funds are disbursed annually to the City by the South Coast Air Quality Management District and must be used for projects that reduce motor vehicle emission. Public transportation fare subsidies, such as the College Free Pass pilot program qualify as an acceptable use of funds. Prior to the end of the pilot program, Omnitrans will seek student support to continue the program by making it sustainable through student fees. 1 COUNCIL AGENDA ITEM NO. J DISCUSSION: Currently, 385 students from the partner colleges reside in Grand Terrace and would benefit from the program. According to Omnitrans, just one student switching from driving to taking the bus removes 20 pounds of carbon emissions each day from the air we breathe. Additionally students could save $2,400 annually compared to driving. The success of similar College Free Pass programs demonstrates that cities and students benefit. When Riverside Transit Agency implemented a fare free college pass program at Riverside Community College, transit usage grew from two percent to ten percent of students within two years. This eliminated the demand of over 1,000 parking spaces on campus, reduced auto emissions, and expanded residents' opportunities to get the critical job training that leads to economic growth. Omnitrans has calculated that 385 residents living in Grand Terrace attend a number of colleges in San Bernardino County. A $15.00 per student rate for the 385 students would total $5,775.00. This amount would be a onetime request for a pilot program in fiscal year 2011-2012, starting on August 15, 2011 and ending on June 30, 2012. 385 Students in Grand Terrace Attending College 216 San Bernardino Valley College 128 Cal State University San Bernardino 41 Crafton Hills College ALTERNATIVES: 1. Enter into the proposed agreement for one year participation in the Omnitrans College Free Pass pilot program. This altemative will greatly reduce vehicle emissions in fiscal year 2011-2012. 2. Do not enter into the proposed agreement for one year participation in the Omnitrans College Free Pass pilot program. This altemative will negatively impact air quality benefits. FISCAL IMPACT: A one-time payment to Omnitrans for $5,775.00 from subvention funds provided to the City through AB2766. Currently account number 15.500 has $15,000.00 available. If 2 the College Fee Pass pilot program is approved the remaining funds in account number 15.500 would total $9,225.00. Respectfully submitted, Wiefiard Shields, Director of Building and Safety/Public Works Manager Approval: Betsy dams City Manager ATTACHMENTS: Exhibit "A", Agreement with Omnitrans. Exhibit "B", Letter from San Bernardino County Community College District. 3 Exhibit "A" Agreement between City of Grand Terrace and Omnitrans for one-time funding for a College Free Pass pilot program for 2011-2012 Academic Year. Contract No. This agreement is made and entered into this day of 2011, by and between Omnitrans, 1700 W. Fifth Street, San Bernardino, CA 92411 and the City of Grand Terrace, 22795 Barton Road, Grand Terrace, CA 92313 referred to as the CITY. RECITALS: WHEREAS, CITY desires to reduce air pollution and traffic congestion in the CITY by decreasing automobile trips and promoting the use of public transportation and; WHEREAS, OMNITRANS provides public transportation service throughout San Bernardino County including trips to Crafton Hills College, California State University San Bernardino and San Bernardino Valley College using clean burning compressed natural gas vehicles which eliminate vehicles from roads and; WHEREAS, OMNITRANS proposes a one-time donation for a College Free Pass pilot program for free bus rides for all students residing in Grand Terrace on the Omnitrans commuter bus routes servicing three campuses, Crafton Hills College, California State University San Bernardino and San Bernardino Valley College. WHEREAS, CITY agrees to participate in the College Free Pass pilot program by providing $5,775.00 for 385 students to partially subsidize Grand Terrace student's bus fares during the program period. ARTICLE 1. STATEMENT OF WORK AND PAYMENT A City agrees to provide Omnitrans with a one-time amount of $5,775.00 to be used to fund a portion of the College Free Pass pilot program sponsored by Omnitrans and payable upon receipt of invoice from Omnitrans. B. Omnitrans shall allow Grand Terrace students who provide a current valid College Identification Card to ride all of Omnitrans fixed route and commuter services at no charge commencing August 15, 2011 and ending June 30, 2012. This shall not apply to Access Dial—A-Ride services. C. Omnitrans shall promote this program to Grand Terrace students to encourage usage. 1 ARTICLE 2. REPORTS At the conclusion of the program, Omnitrans shall provide CITY with a report summarizing usage and success of the program for use by CITY in reporting use of AB 2766 funds. ARTICLE 3, INDEPENDENT CONTRACTOR CITY is an independent contractor and not a beneficiary or employee of Omnitrans within the meaning of any Workers' Compensation law, or any law which would entitle benefits arising out of any state or federal unemployment or old age fund or similar law, or any right to privilege extended by Omnitrans to its employees. CITY has no power to bind Omnitrans, by contract of otherwise except as herein provided by the sale of public transportation. Omnitrans is an independent contractor and not a beneficiary or employee of CITY within the meaning of any Workers' Compensation law, or any law which would entitle benefits arising out of any state or federal unemployment or old age fund or similar law, or any right to privilege extended by CITY to its employees. Omnitrans has no power to bind CITY, by contract of otherwise except as herein provided by the sale of public transportation ARTICLE 4. INDEMNITY Omnitrans shall defend, indemnify and hold CITY, its officers, agents, and employees harmless from and against any and all liabilities, loss expense (including reasonable attorneys' fees), or claims for injury or damage arising out of the performance of this Agreement but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damage are caused by or result from the negligent or intentional acts of omissions of Omnitrans, its officers, agents, or employees. City shall defend, indemnify and hold Omnitrans, its officers, agents, and employees harmless from and against any and all liabilities, loss expense (including reasonable attorneys' fees), or claims for injury or damage arising out of the performance of this Agreement but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damage are caused by or result from the negligent or intentional acts of omissions of City, its officers, agents, or employees. ARTICLES, INSPECTION OF RECORDS Omnitrans shall permit the authorized representative of CITY, during reasonable hours, to examine, inspect and audit all records and accounts pertaining to the 2 College Free Pass pilot program and this Agreement. Omnitrans shall make such items readily accessible to CITY during Omnitrans performance hereunder and for a period of four (4) years from the end of the program by CITY hereunder. ARTICLE 6. DEFAULT In the event that Omnitrans does not receive the necessary funding from all participating jurisdictions before service begins, the program shall be cancelled and any funds received from CITY shall be returned in full. ARTICLE 7. MODIFICATION No modification of this agreement shall be effective unless made in writing_ and signed by both parties. ARTICLE 8. TERMS This Agreement shall be effective upon execution and shall continue in effect until June 30, 2012. ARTICLE 9. NOTIFICATION All notices hereunder and communications with respect to this Agreement shall be effective upon the mailing thereof by registered or certified mail, return receipt requested, postage prepaid, and addressed as follows. To CITY: To Omnitrans: City of Grand Terrace 1700 W. Fifth Street 22795 Barton Road San Bernardino, CA 92411 Grand Terrace, CA 92313 Attention: Wendy Williams Attention: Richard Shields Director of Marketing Public Works Dept. (909) 379-7151 909-825-3825 ARTICLE 10. COMPLETE AGREEMENT This Agreement and documents incorporated herein constitute the complete and exclusive statement of the terms of the Agreement between Omnitrans and CITY and it superseded all prior representations, understandings, and communications. The invalidity in whole or in part to insist in any one or more instances upon the performance of any term or terms of this Agreement shall not be construed as a waiver of relinquishment of Omnitrans' right to such performance or to future performance of such a term or terms, and CITY'S obligation to respect thereto shall continue in full force and effect. 3 ARTICLE 11. GOVERNING LAW AND VENUE The law of the State of California, without regard to any conflicts of law provisions, shall govern any action or claim arising out of this Agreement. The parties agree that the venue for any action or claim arising out of or related to this Agreement shall be San Bernardino County. If any action or claim concerning this Agreement is brought by a third party, the parties agree to use their best efforts to obtain a change of venue to San Bernardino County. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year above written. CITY OF GRAND TERRACE OMNITRANS Walt Stanckiewitz, Mayor BY DATE: NAME: TITLE: DATE: APPROVED AS TO FORM: APPROVED AS TO FORM: BY: BY: City Attorney County Counsel 4 SAN BERNARDINO Exhibit "B" COMMUNITY ' COLLEGE DISTRICT 114 South Del Rosa Drive • San Ber 92408 • Phone (909)382-4000 March 25, 2011 ^-. Ms. Betsy M.Adams,City Manager City of Grand Terrace C4of�� 6� � . 22795 Barton Road Grand Terrace, CA 92346 Dear Ms.Adams: The San Bernardino Community College District is partnering with Omnitrans to implement a. College Free Pass pilot program.for the 2011-12 academic year, which is planned to begin on August 15, 2011. This program will significantly enhance the ability of students residing within-the City of Grand Terrace to use alternative transportation to gain access to San Bernardino Valley College and Crafton Hills College. This program will have a positive impact upon the Grand Terrace community. Travel on highways and streets in the Grand Terrace area would be reduced,which would lessen congestion as well as help meet air pollution and greenhouse gas emission reduction goals. Most significantly, affordable transportation to San Bernardino Valley College and,Crafton, Hills College would provide.city residents with the opportunity to participate in higher education and training programs., The Omnitrans Board of Directors, including Grand Terrace Mayor Walt Stanchiewitz,are reaching out to its city members to help fund the Free Pass pilot program for one year by dedicating a.portion.of.your AB 2766 Subvention Fund revenue. We strongly support the efforts of Omnitrans in this regard and believe that improved access to educational programs will greatly.benefit the residents of the City of Grand Terrace. Thank you for your consideration. Sincerely,. Bruce Baron 4Jo LongvillInterim Chancellor Bernardino Commu it College ict Trustee Damaris Castillo-Torres ay a Hrisoulas President,Associated Students President,Associated Students San Bernardino Valley College Crafton Hills College cc: Wendy Williams,Omnitrans " Mayor Walt Stanchiewitz