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12/14/2010 FILE-T, 1-- , O T Y ° December 14;2010 GRAND YERR CE ' 7:30 p.m.' 22795 Barton Road Grand Terrace California 9231X5295 Civic Center , CITY OF GRAND TERRACE' (909),824-6621 Fax(909)783-7629 Fax(909)783-2600 CRA/CITY,COUNCIL' } kiewitz Watt Stanc ` _ Mayor = REGULAR MEETINGS TH Y ee Ann.Garcia IND AND 4, I Tuesday - 6:-00-PI.m. Bernardo Sandoval Darcy.McNaboe Council Members Betsy M.Adams , City Manager Council Chambers, - Grand,Terrace Civic.Center . _ 22795 Barton Road Grand Terrace; CA 92313=5295 ; CITY OF GRAND TERRACE COUNCIL MEETING AGENDA CITY COUNCIL CHAMBERS December 14,2010 GRAND TERRACE CIVIC CENTER 7:30 p.m. 22795 Barton Road THE CITY OF GRAND TERRACE COMPLIES WITH THE AMERICANS-WITH DISABILITIES ACT OF 1990. IF YOU REQUIRE SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING,PLEASE CALL THE CITY CLERK'S OFFICE AT (909)824-6621 AT LEAST 48 HOURS PRIOR TO THE MEETING. IF YOU DESIRE TO ADDRESS THE CITY COUNCIL DURING THE MEETING,PLEASE COMPLETE A REQUEST TO SPEAK FORM AVAILABLE AT THE ENTRANCE AND PRESENT IT TO THE CITY CLERK. SPEAKERS WILL BE CALLED UPON BY THE MAYOR AT THE APPROPRIATE TIME. ANY DOCUMENTS PROVIDED TO A MAJORITY OF THE CITY COUNCIL REGARDING ANY ITEM ON THIS AGENDA WILL BE MADE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK'S OFFICE AT CITY HALLLOCATED AT 22795 BARTON ROAD DURING NORMAL BUSINESS HOURS. IN ADDITION,SUCH DOCUMENTS WILL BE POSTED ON THE CITY'S WEBSITE AT WWW.CITYOFGRANDTERRACE.ORG * Call to Order- * Invocation- * Pledge of Allegiance- * Roll Call- STAFF COUNCIL AGENDA ITEMS RECOMMENDATION ACTION CONVENE CITY COUNCIL MEETING 1. Resolution Declaring the Results for the November 2,2010 Adopt Municipal Election 2. Special Presentations to Outgoing Mayor Maryetta Ferrel and Councilwoman Bea Cortes 3. Swear In Newly Elected Mayor Walt Stanckiewitz and Council Members Bernardo Sandoval and Darcy McNaboe 4. Selection of Mayor Pro Tempore CONVENE COMMUNITY REDEVELOPMENT AGENCY 1. Approval of 11-09-2010 Minutes Approve 2. Annual Report to the Legislative Body-Draft Accept ADJOURN COMMUNITY REDEVELOPMENT AGENCY CONVENE CITY COUNCIL 1. Items to Delete 2. SPECIAL PRESENTATIONS A. Recognition of COL Salinas and 1 Lt Salinas COUNCIL AGENDA 12-14-2010 PAGE 2 OF 3 AGENDA ITEMS STAFF COUNCIL RECOMMENDATIONS ACTION 3. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without discussion. Any Council Member,Staff Member,or Citizen may request removal of an item from the Consent Calendar for discussion. A. Approve Check Register No. 12-14-2010 Approve B. Waive Full Reading o(Ordinances on Agenda C. Approval of Minutes of 11-09-2010 Approve D. Resolution Re-Adopting the Standard Conflict of Interest Adopt Code E. Resolution Adopting Five-Year Capital Improvement Approve/Adopt Program F. Notice of Completion -Grand Terrace Road Landscaping Accept Project(EZ Sunnyday Landscaping) G. Notice of Completion Grand Terrace Road Reconstruction Accept Project(Palm Canyo;: Contractors) H. State COPS SLESF Grant FY-2010-11 Expenditure Plan Approve I. Final Parcel Map 177P7,to Consolidate Seven Existing Lots Approve/Accept and Resubdivide them into Seven New Parcels J. Resolution FY-2010-; I Appropriations Limit-Revised Adopt K. Crime Prevention Committee Minutes of September 13,2010 Accept L. Community Emergency Response Team Minutes of Accept September 7,2010 and October 5,2010 4. PUBLIC COMMENT This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law,the City Council may not discuss or act on any item not on the agenda,but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. 5. COUNCIL REPORTS 6. PUBLIC HEARINGS-None 7. UNFINISHED BUSINESS A. Development Agreement 09-01 Affecting a Portion of the Adopt Grand Terrace Town Square Master Development Plan Site Area- Second Reading of an Ordinance Adopting Development Agreement 09-01 Applicable to Approximately 12.5 Acres of the Grand Terrace Town Square Master Development Plan COUNCIL AGENDA 12-14-2010 PAGE 3 OF 3 AGENDA ITEMS STAFF COUNCIL RECOMMENDATIONS ACTION 8. NEW BUSINESS A. Consider Options to Fill Vacant City Council Seat B. Appointments to Various Regional Government Organizations Appoint 9. CLOSED SESSION-None ADJOURN THE NEXT CRA/CITY COUNCIL MEETING WILL BE HELD ON TUESDAY,JANUARY 11,2011 AT 6:00 P.M. AGENDA ITEM REQUESTS MUST BE SUBMITTED IN WRITING TO THE CITY CLERK'S OFFICE NO LATER THAN 14 CALENDAR DAYS PRECEDING THE MEETING. , ., -,u i,4LlIFORNIA AGENDA REPORT MEETING DATE: December 14, 2010 Council Item(X ) CRA Item ( ) TITLE: Declaration of Results for the November 2, 2010 Municipal Election PRESENTED BY: Brenda Mesa, City Clerk RECOMMENDATION: Adopt a resolution declaring the results of the November 2, 2010 election as certified by the San Bernardino County Registrar of Voters BACKGROUND: The City of Grand Terrace's November 2, 2010 Municipal Election for Mayor, Council Member (Full Term), Council Member (Short Term) and Measure Z was consolidated with the County of l San Bernardino statewide General Election. In accordance with the Elections Code, the San Bernardino County Registrar of Voters completed the official canvass and issued the certified results on November 29, 2010. According to the certified election results, Walt Stanckiewitz was elected as Mayor for the full term of four years; Bernardo Sandoval was elected as Member of the City Council for the full term of four years; Darcy McNaboe was elected as Member of the City Council for the short term of two years. A majority of voters did not approve Measure Z relating to Fireworks. DISCUSSION: The Elections Code requires the City Council to adopt a resolution reciting the fact of the election and declare the result no later than the next regularly scheduled city council meeting following presentation of the canvass of the returns, or at a special meeting called for this purpose. Adoption of the attached Resolution will satisfy the requirements to declare the results and authorize the swearing-in of the elected Mayor and Council Members. FISCAL IMPACT: None COUNCIL,AGENDA ITEM NO. i 1 Respectfully submitted: Brenda Mesa, City Clerk Manager Approval: x Betsy . Adams, City Manager ATTACHMENTS: Proposed resolution reciting the fact of the General Municipal Election held on November 2, 2010, declaring the result and such other matters as provided by law. ,014 ,M3TI A-(Y,4 IA .J r0000 Resolution No. 2010- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 2,2010, DECLARING THE RESULTAND SUCH OTHER MATTERS AS PROVIDED BY LAW WHEREAS, a General Municipal Election was held and conducted in the City of Grand Terrace, California, on Tuesday, November 2, 2010, as required by law; and WHEREAS, notice of the election was given in time, form and manner as provided by law; that voting precincts were properly established; that election officers were appointed and that in all respects the election was held and conducted and the votes were cast, received and canvassed and the returns made and declared in time, form and manner as required by the provisions of the-Elections Code of the State of California for the holding of elections in general law cities; and WHEREAS, the County Registrar of Voters canvassed the returns of the election and has certified the results to this City Council, the results are received, attached and made a part hereof as "Exhibit A." NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That the whole number of ballots cast in the precincts except vote by mail voter ballots was 2,302. That the whole number of vote by mail voter ballots cast in the City was 1,680, making a total of 3,982 ballots cast in the city. Section 2. That the names of persons voted for at the election for Mayor are as follows: Doug Wilson, Walt Stanckiewitz, Sally McGuire and Denise DeCenty-Sternberg., That the names of persons voted for at the election for Member of the City Council Full Term are as follows: Bea Cortes, Richard Loder, Thomas Schwab and Bernardo Sandoval. That the names of persons voted for at the election for Member of the City Council Short Term are as follows: Sylvia A. Robles and Darcy McNaboe. That the measure voted upon at the election is as follows: Shall the Ordinance to prohibit the possession, sale, use, display or discharge of fireworks within the City of Grand Terrace be adopted: Section 3. That the number of votes given at each precinct and the number of votes given in the City to each of the persons named above for the respective offices for which the persons were candidates and for and against the measure were as listed in Exhibit"A" attached. Section 4. The City Council does declare and determine that Walt Stanckiewitz was elected as Mayor for the full term of four years; Bernardo Sandoval was elected as Member of the City Council-for the full term of four years; Darcy McNaboe was elected as Member of the City Council for the short term of two years; That as a result of the election, a majority of the voters voting on the measure w _� relating to Fireworks did not vote in favor of it; and that the measure was not carried, and shall not be deemed adopted and ratified. Section 5. The City Clerk shall enter on the records,of the City Council of the City, a statement of the result of the election, showing: (1) The whole number of ballots cast in the-City; (2)The names of the persons voted for; (3)The measure voted upon; (4) For what office each person was voted for; (5) The number of votes given at each precinct to each person, and for and against the measure; (6) The total number of votes given to each person, and for and against each measure. Section 6. That the City Clerk shall immediately make and deliver to each of the persons so elected a Certificate of Election signed by the City Clerk and authenticated; that the City Clerk-shall also administer to each person elected the Oath of Office prescribed in the Constitution of the State of California and shall have them subscribe to it and file it in the office of the City Clerk. Each and all of the persons so elected shall then be inducted into the respective office to which they have been elected. Section 7. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. PASSED, APPROVED AND ADOPTED this 14th day of December, 2010. Mayor of the City of Grand Terrace ATTEST: City Clerk of the City of Grand Terrace I, BRENDA MESA, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 14th day of December, 2010, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Brenda Mesa, City Clerk Approved as to form: City Attorney I�LV IV 1 1\MI♦ VI V V I L.1\V C six u�ex'Nwaui?ro 777 East Rialto Avenue•San Bernardino,CA 92415-0770•(909)387-8300 Fax(909 387-2022 - tra VfV -� Registrar of Voters CERTIFICATE OF REGISTRAR OF VOTERS STATE OF CALIFORNIA ss k COUNTY OF SAN BERNARDINO I, KART VERJIL, Registrar of Voters of the County of San Bernardino, State of California, do hereby certify that pursuant to the provisions of Election Code Section 15300 et seq., I did canvass the returns of the votes cast on November 2, 2010, as part of the General Election for each elective office and/or measure in the CITY OF GRAND TERRACE Mayor - One City Council Member- Full Term One City Council Member- Short Term Measure Z and I further certify that the Statements of Votes Cast, to which this certificate is attached, shows the total number of ballots cast in each of the respective precincts therein, and that the totals of the respective columns and totals as shown are full, true and correct. WITNESS my hand and Official Seal this 29th day of November, 2010. t Kar erjil "> N Registrar of Voters s�i I c and -D, _ nerv.sox, EAUX PAD MITZELFELT r= D irst :c;tnct NEIL vERRY ^rd u;stn:a �%inty Ad a is�anve Officer ?AUL BIANE 3eccno uistrict ;,4RY C OVITT Chairman LL,urtn Ustrs;t JuSIE t,ONL-;LtS,V';ce Chair Fifth District S November2,2010 GENERAL ELECTION CITY OF GRAND TERRACE 100094 w w m U ;2H _ U)w . w m 0 w U) w z z `1 2; z � to O S fA � 0 Q CAA Z (9 U w w O U 0: z m � to U) LLI w 00 Q p o c O t7 F- J rn Z Q U Q Z- Z z Q V d i g 0 Q a w lY W U O m 9 tY m 1— G N in C1 m H m O N O GRAND TERRACE 1 23856 885 247 27.91 44 111 49 6 61 38 49 58 110 95 GRAND TERRACE 1-Vote By M 885 175 19.77 37 75 40 6 44 39 31 37 70 69 GRAND TERRACE 2 23857 971 454 46.76 133 183 95 9 61 102 109 146 190 215 GRAND TERRACE 2-Vole By M 971 296 30.48 62 147 58 7 44 59 50 112 -114 145 GRAND TERRACE 3 23858 1028 322 31.32 82 129 72 9 45 67 63 112 137 144 GRAND TERRACE 3-Vote By M 1028 324 31.52 82 162 60 6 35 87 83 104 126 178 GRAND TERRACE 4 23859 1116 399 35.75 100 141 84 21 89 76 69 106 183 144 GRAND TERRACE 4-Vote By M 1116 280 25.09 80 114 52 8 53 57 64 80 121 119 GRAND TERRACE 5 23860 896 358 39.87 88 142 88 7 36 66 79 141 169 139 GRAND TERRACE 5-Vole By M 898 261 29.06 56 118 73 5 35 49 57 99 109 130 GRAND TERRACE 6 23861 1315 478 36.35 104 226 110 10 84 100 83 182 234 198 GRAND TERRACE 6-Vote By M 1315 344 26.16 76 165 83 8 52 81 78 117 151 168 GRAND TERRACE 7 23862 58 28 48.28 9 9 5 1 3 3 9 11 11 14 GRAND TERRACE 7-Vote By M 58 0 0.00 0 0 0 0 0 0 0 0 0 0 GRAND TERRACE 9 23863 27 16 59.26 5 7 3 0 3 6 3 2 2 14 GRAND TERRACE 9-Vote By M 27 0 0.00 0 0 0 0 0 0 0 0 0 0 Precinct Totals 6298 2302 36.55 565 948 506 63 382 458 464 758 1036 963 Vote By Mail Totals 6298 1680 26.68 393 781 366 40 263 372 373 549 691 809 Grand Totals 6298 3982 63.23 958 1729 872 103 645 830 837 1307 1727 1772 San Bernardino County 6298 3982 63.23 958 1729 872 103 645 830 837 1307 1727 1772 State Bd of Equal 2 6298 3982 63.23 958 1729 872 103 645 830 837 1307 1727 1772 Congressional District 41 6298 3982 63.23 958 1729 872 103 645 830 837 1307 1727 1772 Senate District 31 6298 3982 63.23 958 1729 872 103 645 830 837 1307 1727 1772 Assembly District 63 6298 3982 63.23 958 1729 872 103 645 .830 837 1307 1727 1772 Supervisorial District 3 6298 3982 63.23 958 1729 872 103 645 830 837 1307 1727 1772 ty of Grand Terrace 6298 3982 63.23 958 1729 872 103 645 830 837 1307 1727 1772 November 2,2010 GENERAL ELECTION MEASURE Z-GRAND TERRACE 140154 C y N e w V N G C GC m I.— Z GRAND TERRACE 1 23856 885 247 27.91 60 163 GRAND TERRACE 1-Vote By M 885 175 19.77 57 108 .i GRAND TERRACE 2 23857 971 454 46.76 129 299 I i. GRAND TERRACE 2-Vote By M 971 296 30.48 105 175 GRAND TERRACE 3 23858 1028 322 31.32 66 227 GRAND TERRACE 3-Vote By M 1028 324 31.52 126 186 GRAND TERRACE 4 23859 1116 399 35.75 77 287 GRAND TERRACE 4-Vote By M 1116 280 25.09 114 147 GRAND TERRACE 5 23860 898 358 39.87 91 248 GRAND TERRACE 5-Vote By M 898 261 29.06 97 158 GRAND TERRACE 6 23861 1315 478 36.35 94 355 GRAND TERRACE 6-Vote By M 1315 344 26.16 124 215 GRAND TERRACE 7 23862 58 28 48.28 6 22 GRAND TERRACE 7-Vote By M 58 0 0.00 0 0 GRAND TERRACE 9 23863 27 16 59.26 12 4 GRAND TERRACE 9-Vote By M 27 0 0.00 0 0 Precinct Totals 6298 2302 36.55 535 1605 Vote By Mail Totals 6298 1680 26.68 623 989 Grand Totals 6298 3982 63.23 1158 2594 San Bernardino County 6298 3982 63.23 1158 2594 State Bd of Equal 2 6298 3982 63.23 1158 2594 Congressional District41 6298 3982 63.23 1158j259944 N Senate District 31 6298 3982 63.23 1158 Assembly District 63 6298 3982 63.23 1158 Supervisorial District 3 6298 3982 63.23 1158 City of Grand Terrace 6298 3982 63.23 1158 CALIFORNIA AGENDA REPORT MEETING DATE: December 14, 2010 Council Item (X) CRA Item ( ) TITLE: Selection of Mayor Pro Tempore PRESENTED BY: Brenda Mesa, City Clerk RECOMMENDATION: Select a Council Member to serve as Mayor Pro Tempore for a term of two years until the next regular election BACKGROUND: Historically the City Council has selected a member of the City Council to serve as Mayor and Mayor Pro Tempore every two years following the regular municipal election date. As a result of a ballot initiative in November 2004, the office of Mayor became a directly elected position and, therefore, it is only necessary to select a Mayor Pro Tem from among the Members of the City Council. -` DISCUSSION: Government Code Section 36801 provides the following: 36801 The City Council shall meet at the meeting at which the declaration of the election results for a general municipal election is made and, following the declaration of the election results and the installation of elected officials, choose one of its number as mayor, and one of its number as mayor pro tempore. FISCAL IMPACT: None Respectfully submitted: Brenda Mesa, City Clerk Manager Approval: Betsy WAdanYs, City Manager COUNCIL AGENDA ITEM NO. ��. PENDING CRA APPROVAL CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY MINUTES REGULAR MEETING-NOVEMBER 9,2010 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 November 9, 2010 at 6:00 p.m. PRESENT: Maryetta Ferre, Chairman Lee Ann Garcia, Vice-Chairman Walt Sianckiewitz,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. Carlos Espinoza, San Bernardino County Sheriff s Department ABSENT: Bea Cortes, Agency Member Rick McClintock, San Bernardino County Fire Department CONVENE COMMUNITY REDEVELOPMENT AGENCY AT 6:00 P.M. APPROVAL OF 10-12-2010 MINUTES CRA-2010-47 MOTION BY VICE-CHAIRMAN GARCIA, SECOND BY AGENCY MEMBER STANCKIEWITZ, .CARRIED 3-0-1-0 (AGENCY MEMBER CORTES WAS ABSENT), to approve the October 12, 2010 Community Redevelopment Agency Minutes. AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING(MOU) BETWEEN THE AGENCY AND GRAND TERRACE PARTNERS/RIGHT OF ENTRY WITH COLTON JOINT UNIFIED SCHOOL DISTRICT/AWARD CONTRACT FOR CONSTRUCTION MANAGEMENT,INSPECTION SURVEY AND STAKING (FRACO ENTERPRISES, INC.)/RESOLUTION ADOPTING CERTAIN FINDINGS REGARDING THE CONSTRUCTION AND INSTALLATION OF PUBLIC IMPROVEMENTS,WHICH ARE OF BENEFIT TO THE GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT AREA RESOLUTION/APPROPRIATE $469,380.45 FOR PROJECT COSTS CONSTRUCTION CONTINGENCY OF 10%,AND PROJECT MANAGEMENT Ken Bordman, 22022 Tanager Street, stated that he is no longer the President of the League but he has been working with Staff on this project for quite some time. He CRA AGENDA ITEM NO. I Community Redevelopment Agency Minutes November 9,2010 Page 2 stated that the kids do need another field to play. He encouraged the Agency to move forward with this item. CRA-2010-48 MOTION BY VICE-CHAIRMAN GARCIA, SECOND BY AGENCY MEMBER STANCKIEWITZ, CARRIED 3-0-1-0 (AGENCY MEMBER CORTES WAS ABSENT), to approve Amendment No. 1 to the Memorandum of Understanding (MOU)between the Agency and Grand Terrace Partners,LLC(Grand Crossings)to revise the site area to allow for construction of the baseball field, approve the Right of Entry between the City,the Agency,and Colton Joint Unified School District for access to the new field and award the contract for Construction Management, Inspection, Survey and Staking to Fraco Enterprises, Inc. And authorize the Executive Director to prepare and execute the Professional Services Agreement, subject to the approval of the Right of Entry by CJUSD. CONTINUING APPROPRIATIONS FOR FY 2010-11 CRA-2010-49 MOTION BY AGENCY MEMBER STANCKIEWITZ, SECOND BY VICE- CHAIRMAN GARCIA,CARRIED 3-0-1-0(AGENCY MEMBER CORTES WAS ABSENT), to approve and appropriate continuing appropriations in the amount of $440,053 in CRA Capital Projects Fund (32) and to approve and appropriate continuing appropriation of purchase orders in the amount of $133,888 in CRA Capital Projects Fund(32)and direct staff to make any necessary adjustments to the continuing appropriations in FY 2010-11 due to possible changes in the FY 2009-10 balances when the fiscal year is closed. APPROPRIATE$137.391.10 FROM THE AGENCY'S NON-HOUSING FUNDS FOR THE GRAND TERRACE SENIOR CENTER COMMERCIAL KITCHEN REMODEL CRA-2010-50 MOTION BY CHAIRMAN FERRE, SECOND BY AGENCY MEMBER STANCKIEWITZ, CARRIED '3-0-1-0 (AGENCY MEMBER CORTES WAS ABSENT),to appropriate$137,391.10 from the Agency's non-housing funds to the project, pending a reimbursement in Community Development Block funds of $80,000.00. Chairman Ferrd adjourned the Community Redevelopment Agency Meeting at 6:41 p.m.,until the next CRA/City Council Meeting that is scheduled to be held on Tuesday,December 14,2010 at 7:30 p.m. SECRETARY of the Community Redevelopment Agency of the City of Grand Terrace Community Redevelopment Agency Minutes November 9,2010 Page 3 CHAIRMAN of the Community Redevelopment Agency of the City of Grand Terrace CALIFORNIA AGENDA REPORT MEETING DATE: December 14, 2010 Council Item ( ) CRA Item (X) TITLE: ANNUAL REPORT TO THE LEGISLATIVE BODY - DRAFT PRESENTED BY: Bernie Simon, Finance Director Joyce Powers, Community and Economic Development Director RECOMMENDATION: Accept and file the Draft 2009-10 Annual Reports for the Community Redevelopment Agency BACKGROUND: Section 33080.1 of the Health and Safety Code requires that each redevelopment agency within the State of California present an annual report to its legislative body within six months of the end of the agency's fiscal year. As required by Section .33080.1, the independent financial audit, the fiscal statement for the 2009-10 fiscal year, the Housing and Community Development ("HCD")-Report, and the State Controller's Report have been drafted and are submitted for .approval to the Agency Board. Draft information is submitted due to the timing and lack of a second Agency meeting in December. The final_ reports will be brought back to the Board at the end of January for formal approval. DISCUSSION: The annual report for fiscal year 2009-10 consists of financial and project information as summarized below: Housing and Displacement Activities Section 33080.1(c) requires a description of certain affordable housing and redevelopment activities in the 2009-10 fiscal year. Accordingly, the following has been identified: Displacement: There were no non-elderly or elderly households that were displaced or moved from their dwelling units as part of a redevelopment project of the Agency during the 2009-10 fiscal year. Blue Mountain Senior Housing Project: The Agency worked with developer to construct a 120 unit senior citizen rental project located at the former Webster House at 22645 Grand Terrace Road. In addition to the affordable units, the project features a senior citizens center. Of DRA AGENDA ITEM NO. the 120 units, 108 will be restricted for very low and low income seniors; the remaining 12 units will be restricted for moderate income seniors. The Agency's LMIHF paid an estimated $9.3 million of the projected $20 million total cost of the project. Project was completed and final Agency funding and retention in the amount of$469,357 was paid in the current fiscal year. Affordable Housing Programs: Although there is currently no new activity, the agency is administering a portfolio of low and moderate income loans: • Low and Moderate Home Improvement Loan Program -outstanding value$90,630 • Low and Moderate 2nd Mortgage Program -outstanding value $688,600 Offsite Improvements for Affordable Housing: There were no dwelling units designated as very low, low and moderate income households that directly benefited from LMIHF expenditures for offsite improvements which resulted in the elimination of health and safety hazards. Maintenance and Repair for Affordable Housing: No activities were conducted during this Fiscal Year 1009-10. Alleviation of Blight Section 33080.1(c) also requires a description of the Agency's progress in alleviating blight in the 2009-10 fiscal year, including specific actions and expenditures. The Senior Housing and Senior Center project assisted in the alleviation of blight, as did the following projects and programs. Property acquisition and land improvements for projects: Property acquisition for both the freeway-oriented acre project (Grand Crossings) and the Town Square commercial project have been completed in partnership with private development partners. In addition, the Agency is pursuing additional opportunities while sales prices are low to assemble property for projects at other locations that will provide new jobs for residents. ■ Purchase of a .4 acre parcel on the north side of Barton Road contiguous to a parcel purchased in fiscal year 2008-09. ■ Demolition of old Circle K building at Agency owned property, 22747 Barton Road. ■ Demolition of an unsafe building at Agency owned property on Vista Grande Way. ■ Demolition of an unsafe building on Michigan Street. Other public benefit projects: ■ Community Message Signs - $66,210 ■ Grand Terrace Road infrastructure rehab and landscaping design -$24,040 ■ Senior Center Kitchen project design - $10,068 ■ Baseball field replacement project design - $44,326 High School and public infrastructure improvements: Through a partnership with.the Colton Joint Unified School District, property was assembled and sold to the District for the new high school and businesses were relocated. The Agency has assisted the District with relocation of a 48-inch water line and will contribute funds toward completion of a storm drain at the site. Commercial Exterior Improvement Program: The Agency is working with property owners to provide financial assistance to improve building _facades and properties. $52,356 was expended in the current fiscal year. Neighborhood Improvement Grant Program: The Agency is providing limited financial assistance to improve the exterior of older homes in the City. $31,295 was budgeted in the current fiscal year. The maximum grant amount is $1,000 for residents of low to moderate income, and the funds may be used to purchase materials for exterior upgrades to residential property, such as paint and landscaping materials. Code Enforcement Program: The Agency has continued its support of the Code Enforcement Program to ensure the preservation of both residential and commercial neighborhoods and eliminate substandard housing. In addition to complaint response, during 2006, a residential inspection program was established for rental housing. Any substandard housing and property maintenance violations observed are required to be corrected. Pro-active enforcement has been expanded over this fiscal year. Agency Owned Property: Finally, Section 33080.1(f) requires a description of the total number of and nature of properties that the Agency owns and those properties the Agency acquired during the 2009-10 fiscal year. The Agency currently owns approximately 40 acres consisting of fifteen(15)parcels: Parcel No Site Address Acquired Acres 1167-141-08 W. Commerce Dr. 10/25/2005 0.94 1167-151-61 None 11/22/2000 9.21 1167-151-68 None 11/22/2000 7.45 1167-151-62 None 11/22/2000 8.92 1167-151-71 None n a 4.97 1167-151-73 None n a 0.47 8 19 2005 1167-161-03 21992 De Berry St. 2.80 J 1167-231-01 22293 Barton Rd. 5 23 2001 1.38, 1167-161-04 21974 DeBerry St. 7 21 2005 0.25 0275-251-04 11695 Canal St. 05 12 09 0.66 0276-462-10 22720 Vista Grande 06 09 09 0.25 0275-242-10 22100 Barton Road 08 1 09 0.87 0275-242-11 22100 Barton Road 01 27 09 0.44 0276-202-54 22747 Barton Road 01 13 09 0.34 1167-311-01 22317 Barton Road 01 31 02 1.36 Reports filed with the State On file with the Finance Director are the independent financial audit and the fiscal statement for the fiscal year 2009-10, draft of the HCD Report, and draft of the State Controller's Report. The final reports will be submitted to the State Controller's Office by December 31, 2010. FISCAL IMPACT: There is no fiscal impact associated with the preparation of this report. Respectfully submitted, Bernie Simon, Finance Director Respectfully submitted, Joyce Powers, Community and Economic Development Director Manager Approval: i Betsy M!�Adam City Manager ATTACHMENTS: FY 2009-10 Audited Financial Statements FY 2009-10 Annual Report of Financial Transactions FY 2009-10 HCD Report r" t FY 2009- 10 Draft Annual Audit Financial and Compliance Report L COMMUNITY REDEVELOPMENT �-' AGENCY OF THE CITY OF GRAND TERRACE, CALIFORNIA ANNUAL FINANCIAL AND COMPLIANCE REPORT June 30, 2010 7 Community Redevelopment Agency of the City of Grand Terrace Table of Contents PAGE Independent Auditor's Report 1 Management's Discussion and Analysis 3 Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets 11 Statement of Activities 12 Fund Financial Statements Balance Sheet - Governmental Funds 13 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 14 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 15 Reconciliation of the Statement of Revenues, Expenditures, and Changes _ _. ... -- ---irf Fund Balances of Governmental Funds to the Statement of Activities 16 Notes to Financial Statements 17 Required Supplementary Information Budgetary Comparison Schedule - Major Special Revenue Fund 32 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 33 g Governing Board Community Redevelopment Agency of the City of Grand Terrace Grand Terrace, California INDEPENDENT AUDITOR'S REPORT We have audited the accompanying financial statements of the governmental activities, and each major fund of the Community Redevelopment Agency of the City of Grand Terrace, California (the "Agency"), a component unit of the City of Grand Terrace, California, as of and for the year ended June 30, 2010, which collectively comprise the Agency's basic financial statements as listed in the table of contents. These component unit financial statements are the responsibility of the Agency's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements - are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Community Redevelopment Agency of the City of Grand Terrace, California, as of June 30, 2010, and the respective changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2010, on our consideration of the Community Redevelopment Agency of the City of Grand Terrace, California's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting 'or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. -1- A Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. December 1, 2010 -2- 1i Management's Discussion and Analysis i Our discussion and analysis of the Community Redevelopment Agency of the City of Grand.Terrace (the "Agency") financial performance for1he fiscal year ended June 30, 2010 provides an overview of year ending results based on the government-wide statements, an analysis on the Agency's overall financial position, and results of operations to assist users in evaluating the Agency's financial position. In addition, it shows the result of the activities during the year for long term debt. Please. read it in conjunction with the Agency's financial statements. FINANCIAL HIGHLIGHTS The Agency recorded $6,9.1.5,622 of expenditures on programs and projects in the government—wide statements ($11,065,467 on the fund statements),including: Administration and economic development costs — Personnel, legal., consulting, redevelopment plan amendment costs, general development and .economic expenditures - $750,500. In addition, $660,000 was paid to the City of Grand Terrace in a contractual residual receipts agreement guarantee with the Agency. The Agency paid $300,000 for the current fiscal year 2009-10 and a second $300,000 payment for-a previous period residual receipts agreement guarantee which was incurred but not paid until FY 2009-10. High School and public infrastructure improvements_— Through a partnership Withthe Colt__ -- ----- tlnifled-Su oof-District, ropeit was assembled and sold to the District for the new high school and businesses were relocated. The Agency has assisted the District with,relocation of a 48-inch water line and will contribute funds toward completion of a storm drain at the site. _ Senior Center and Senior Housing — The project includes a new 7,000 square foot senior center ` (up,from the existing 4,500 square feet) and 120 one- and two-bedroom units for seniors. One- hundred and eight (108) units are 'restricted for household incomes at or below 60% of the area median income adjusted for family size. The project was completed and final Agency funding and retention in the amount of$469,357 was paid in the current fiscal year. Affordable Housing Programs — Although there is currently no new activity, the agency is administering a portfolio of low and moderate income loans: - Low and Moderate H ome'Improvement Loan Program -outstanding value $90,630 - Low and Moderate 2ndMortgage Program -outstanding value $688,600. Property acquisition and land improvements for projects — Property acquisition for both the freeway-oriented, 120-acre project (former Outdoor Adventure site) and the Town Square commercial project have been completed in partnership with private development partners. In addition, the Agency is pursuing additional opportunities while sales prices are low to assemble property for projects at other locations that will provide new jobs for residents. The Agency currently owns approximately 39 acres for commercial development and public uses. - Purchase of .87 acre lot on Barton Road for future projects - $200,926 - Demolition of old Circle K building at Agency owned,property 22747 Barton Road - Demolition of an unsafe building at Agency owned property on Vista Grande Ave. Other projects —expenditures in the current fiscal year include: Community Message Board : $66,210 Grand Terrace Road infrastructure rehab - $24,040 > Senior Center Kitchen project - $10,068 > Baseball field replacement project - $44,326 -3- 11 Economic Development and Redevelopment Website — To offer better access to information about the City's and Redevelopment Agency's programs and projects, staff is in the process of upgrading the City's website. This effort includes providing links to outside agency programs that are available, such as small business loans and-marketing plan assistance. Code Enforcement Program — The Agency has continued its support of the Code Enforcement Program to ensure the preservation.of both residential and commercial neighborhoods and eliminate substandard housing. In addition to complaint response, during 2006, a residential inspection program was established for rental housing. Any substandard housing and property maintenance violations observed are required to be corrected. Commercial Exterior Improvement Program — The Agency is working with property owners to _ provide financial assistance to improve building facades and properties. $52,356 was expended in the , current fiscal year. Neighborhood.Improvement Grant Program —The Agency is providing limited financial assistance to improve the exterior of older. homes in the City. $31,295 was in the current fiscal year. The maximum grant amount is $1,000 for qualified residents, and the funds may be used to purchase materials for exterior upgrades to residential property, such as paint and landscaping materials. Landscape Beautification Projects — The Agency is assisting landscaping project public improvements along certain_parts of Grand Terrace Road. Debt Service Long Term Debt—the Agency made lease payments to Zions Bank in the amount of$173,647 under an underlying debt assumption related to the refinancing of the 1997 Certificates of Participation and made payments of $1,825,150 for debt obligations of the-2004 CRA Tax Allocation Bonds. The fund statements records the net payoff of the 1997 Certificates of Participation is recorded as a principal payment of debt and records the issuance of the Zions debt capital lease as an other financing source. Principal payments of long term debt are not shown in the'government-Wide statements. Pass-through payments — the Agency made contractual and statutory payments to overlapping taxing agencies in the current fiscal year in the amount of $2,082,561. The total includes a statutory pass-through payment to the City of Grand Terrace in the amount of$131,106. SERAF and ERAF _ in accordance with ABx4-26, the Agency remitted $2,179,087 to the County Auditor-Controller for its' share of mandated Supplemental Educational Revenue Augmentation Fund (SERAF) in May 2010. The Agency was also responsible for $110,362 in statutory Educational Revenue Augmentation Fund (ERAF) liability at June 30, 2010. Redevelopment Plan Amendment The Agency Board adopted CRA Resolution 2010-01, Amended and Revised Redevelopment Plan on January 12, 2010 and the City Council adopted Ordinance 250-on May 11, 2010, adopting Amendment No. 6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project Area. Such amendment will: v extend the time limit for payment of indebtedness and receipt of taxes to September 27, 2032 in the original project area and July 15, 2034 in the revised project area. Increases the tax increment revenue limit from $70 million to $225 million. Increases the amount of outstanding bonded debt from $15 million to $75 million. -4- 1' Other Assessed values in the project area decreased 6.1% over the prior year. On the economic financial resources (government-wide) basis, the Agency's total net assets were in surplus position of $12,630,157 and on the current resources (fund financial statements) basis the Agency's fund balances were in a surplus ,position of $19,784,215 at the end of the year. The lower net assets position on the government wide basis derives from the fact that the Agency produces no capital assets yet reduces net assets for current and future indebtedness under existing bond agreements and capital leases. The non-current portion of these liabilities is not shown under the fund financial statements. On the economic financial resources (government-wide) basis, the Agency reported a change in net assets of -$1,158,700 and on the current resources (fund .financial statements) basis reported a change in fund -balance of $(829,145) for the year. This difference is due primarily to principal payments on debt being higher than the proceeds from issuance of new debt. It is important to note that payments to retire bond principal reduce liabilities and therefore increase net assets on the government=wide basis, whereas payments to retire bond principal are considered expenditures and decrease fund balances under the fund financial statements. USING THIS ANNUAL REPORT This annual report consists of three parts - management's discussion and analysis (this portion), the ------------basic- fii,ancia1 sta ents, and-re quired-MpptMen aryinformation. e - asicfinancial s a emenTs- include the government-wide and fund financial statements. The government-wide financial statements include the statement of net assets and statement of activities. These provide information about the activities of the Agency as a whole and present a long-term view of the Agency's finances. Fund financial statements explain how these services were financed in the short-term as well as what remains for future spending. The fund financial statements also report the Agency's operations in more detail than the government-wide statements by providing information about the Agency's most significant funds and other funds. REPORTING THE AGENCY AS A WHOLE Statement of Net Assets and Statement of Activities One of the most important questions asked about the Agency's finances is, "Is the Agency as a whole better off or worse off as a result of the year's activities?" The statement of net assets and the statement of activities report information about the Agency as a whole and about its activities in a way to answer this question. These statements include all assets and liabilities of the Agency using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the Agency's net assets and changes in net assets. Net assets are the difference between assets (resources) and liabilities (obligations), which is one way to measure the Agency's financial health, or financial position. Over time, increases or decreases in the Agency's net assets are an indication of whether its financial health is improving or deteriorating. However, consideration of other non-financial factors, such as changes in the Agency's tax increment to assess the overall health of the Agency, is necessary. -5- 9Z REPORTING THE AGENCY'S MOST SIGNIFICANT FUNDS Fund Financial Statements The fund financial statements provide detailed information about the most significant funds. Some funds are required to be established by State law and by bond covenants. However, management established other funds to help control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants and other resources. The Agency only has governmental type funds. Governmental funds - The Agency's basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year-end that are available for spending. These funds are reported using the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the Agency's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the Agency's programs. The differences of results in the governmental' fund financial statements to those in the government-wide financial statements are explained in a reconciliation following each governmental fund financial statement. The statement of net assets and the statement of activities present information about the following: --------_ nmenta+- ev-'t*es_ Df the Agencybasic services are considered to be governmental activities, including salaries and wages, community development, and public works. Tax increment and investment income finance most of these activities. 't -6- FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS The government-wide statements provide long-term and short-term information about the Agency's overall financial condition. The analysis addresses the financial statements of the Agency as a whole. TABLE 1 Net Assets Governmental Activities 2010 2009 Current and restricted assets $ 17,395,307 $ 18,267,675 Land held for resale 4,087,317 3,886,391 Total assets 21,482,624 22,154,066. Long-term liabilities outstanding 5,414,532 7,452,506 Other liabilities 3,437,935 3,230,103 Total liabilities 8,852,467 10,682,609 Restricted 19,688,778 20,486,472 Unrestricted (7,058,621) (9,015,015) Total net assets $ 12,630;157' $ *11,471,457 TABLE 2 r } Changes in Net Assets Governmental Activities 2010 2009 GENERAL REVENUES: Property tax increment $ 7,894,018 $ 8,942,753 Investment earnings 129,314 231,858 Miscellaneous - 35,700 Intergovernmental 50,990 - Total revenues 8,074,322 9,210,311 PROGRAM EXPENSES: Community development 3,820,070 1,939,409 Pass-through payments 2,082,561 2,341,265 Project improvement costs 671,590 9,925,158 Interest on long-term debt 341,401 468,331 Total expenses 6,915,622 14,674,163 Change in net assets $ 1,158,700 $ (5,463,852) -7- 1C Revenues—Statement of Activities The total revenue from governmental activities was $8,074,322. Redevelopment tax increment comprised $7,894,018 or 97.8 percent of the total revenue of the Agency. Twenty percent of gross increment is restricted to low and moderate income housing programs. After pass-through to other agencies, the Agency realized net increment of$5,811,457, a decrease of 13.12% over last year. Expenses—Statement of Activities Overall expenses of the Agency totaled $6,915,622. Expenses specific to other community development activity, including planning, code enforcement and housing activities, totaled $3,820,070 or 55.2 percent of total expenses. Pass-through agreements consist of tax increment that is deducted from our gross increment and distributed to other agencies by the County of San Bernardino. The agency is required to report tax increment at the gross amount so that the calculations for the 20 percent set aside restricted for low and moderate income housing activities is-distinguishable. This pass-through amounted to $2,082,561 or 30.1 percent of total expenses. Project Improvement costs amounted to $671,590, or 9.7 percent of the total. Making up the remainder of expenses were interest on debt service ($341,401 or 4.9 percent). Net Assets—Statement of Activities The Agency's net assets increased $1,158,700 during the year as a result of lower spending on project improvement costs. This change is reflected in the statement of activities. FINANCIAL ANALYSIS OF THE FUND STATEMENTS The Agency uses fund accounting to assure and demonstrate compliance with finance-related legal requirements. The fund financial statements- focus on the individual parts of the Agency's government, reporting the Agency's operations in more detail than the government-wide financial statements. The Agency's governmental funds provide information on near-term inflows, outflows and , balances of spendable resources. The Agency's governmental funds reported combined fund balances at June 30, 2010 of$19,784,215, an decrease of more than 4% from last fiscal year. TABLE 3 Fund Financial Statements —Fund Balances Governmental Activities Reserved for: 2010 2009 Encumbrances $ 149,172 $ 147,574 Debt service 1,300,000 1,300,546 Long-term advances receivable 4,606,950 4,606,950 Long-term notes receivable 688,600 713,000 Land held for resale 4,087,317 3,886,391 Total reserved fund balance 10,832,039 10,654,461 Unreserved, reported in: Special revenue_fund 1,221,107 1,517,653 Debt service fund 8,247,631 8,298,948 Capital projects fund (516,562) 142,298 Total unreserved fund balances 8,952,176 9,958,899 Total fund balances $ 19,784,215 $ 20,613,360 -8- 1 F. Fund Balance Analysis by Fund The Special Revenue Fund revenues were $1,609,201 and expenditures and financing uses were $1,930,555. Fund balance decreased by $321,354 to $2,850,078. The decrease primarily related to various transfers to,other funds. The Debt Service Fund revenues and financing sources were $8,991,106, and expenditures were $9,043,377. Fund balance decreased by $52,271 to $13,854,376. The Capital Projects Fund revenues and financing sources were 400,993 and expenditures and financing uses were $856,513. Fund balance decreased by $455,520 to $3,079,761. Major Special Revenue Fund Budgetary Highlights Over the course of the year, the Agency revised the Agency budget with adjustments that fall into the following two categories: - Changes made in the mid-year review to current year expenditure appropriations, adjust appropriations for prior year department carryover, and establish or increase designations of fund balance. - Other expenditure appropriations approved after the original budget is adopted, and before or after midyear report is approved. Actual revenues in the Housing Fund were $29,602 above revised estimates. This is primarily due to increase in tax increment. Actual tax increment exceeded the estimate by $'132,978, while investment earnings were $103,376 under final projections. Program expenditures were under final budget by $35,058, resulting in a budgeted surplus of $64,660 and an actual decrease to fund balance of $32-1,354. DEBT ADMINISTRATION At year-end, the Agency's governmental activities had $7,241,894 in outstanding bonds, .loans and notes. TABLE 4 Outstanding Debt, at Year-End Governmental Activities 2010 2009 Refunding tax allocation bonds $ 5,320,000 $ 6,930,000 Certificates of participation - 2,520,000 Premium on bonds 47,800 71,699 Deferred charges (212,795) (319,193) Lease agreement 2,086,889 - Total outstanding debt $ 7,241,894 $ 9,202,506 -9- 17 ECONOMIC FACTORS Although delayed by legal challenges and the general economic recession, the Agency is progressing with projects in 2009-10. Work is continuing on the Town Center Project and Freeway Project. The general economy of the Inland Empire region and especially the housing industry continued to decline and the foreclosures are still high. San Bernardino County's median new home price was down 1.7% in the second quarter of 2010 compared to the previous year. New home sales fell 14.5% countywide, while existing home sales fell 11.6%. The Inland Empire regional unemployment rate was at 14.4% in June, 2010. The general economy for Grand Terrace approximates the regional statistics with some exceptions. Taxable sales at June 30, 2010 decreased 10.1% compared to the previous year while taxable sales increased countywide by 4.96%. Assessed property values for 2009-10 decreased 5.13% overall in the City and decreased 6.13% in the project area. Sales value of single family residences sold from January 1, 2010 to August 31, 2010 actually increased 15.1% compared to 11.9% countywide. Thirty properties in the City, as of September 2010, are secured lender owned listings. The continuing State of California budget crisis continues to have a potential effect on all cities, special districts and redevelopment agencies. The State of California passed the FY 2009-10 budget, that includes ABx4-26, which will raid.$2.05 billion from redevelopment funds this year. A lawsuit was filed by the Community.Redevelopment Association (CRA) challenging the constitutionality of ABx4- _ 26 as part of the state bud eg t. This is the second straight year that the Community Redevelopment Agency has participated in lawsuits against the state for ERAF transfers from agencies. Last year's challenge was successful and an appeal was not pursued by the state. However, the Sacramento County Superior Court upheld ABx4-26. The City of Grand Terrace Community Redevelopment Agency share of ABx4-26 is $2,179,087 in FY 2009-10 and $448,211 in FY 2010-11. The Community Redevelopment Association is appealing the decision,in the Third Appellate District and contends that State seizure of redevelopment funds to balance the State's budget violates Article XVI, Section 16 of the Constitution on multiple counts. For one, the Constitution requires that redevelopment funds can be used only to finance specified redevelopment activities. Second, taking of redevelopment funds could unconstitutionally impair contracts, particularly covenants pledging future tax revenues to repay bonds. State voters passed ballot initiative Proposition 22 - Prohibit State from Taking Some Local Funds during the November 2"d statewide election. This new initiative should eliminate the type, of state appropriation of redevelopment agency funds, as was done with ABx4-26, in future years. Notwithstanding the current economic conditions, the community of Grand Terrace is stable and well maintained. The community was proud to be recognized by Money Magazine as No. 92 out of 100 in their annual "Best Places to Live" article in 2007. CONTACTING THE AGENCY'S FINANCIAL MANAGEMENT x This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the Agency's finances and to show the Agency's accountability for the money it receives. If you have questions-about this report or need additional financial information, contact the City's Finance Department, at the City of Grand Terrace, 22795 Barton Road, Grand Terrace, California, 92313, or call 909-824-6621. _10- 1! Government-Wide Financial Statements Community Redevelopment Agency of the City of Grand Terrace Statement of Net Assets June 30, 2010 ASSETS Cash and investments $ 10,514,562 Cash and investments with fiscal agents 1,300,000 Interest receivable 10,878 Accrued revenue 414 Due from City of Grand Terrace 4,606,950 Loans receivable 90,630 Notes receivable 688,600 Property held for resale 4,087,317 Deferred charges 183,273 Total assets 21,482,624 LIABILITIES Accounts payable and other current liabilities 66,769 Accrued interest payable 95,437 --- Due to other governments --t-090, 1 10 -- Due to City of Grand Terrace 267,622 Deferred revenue 90,630 Non-current liabilities: Due-within one year 1,827,362 - Due in more than one year 5,414,532 Total liabilities 8,852,467 NET ASSETS Restricted for: Community development 2,850,078 Capital projects 3,079,761 Debt service 13,758,939 Unrestricted (deficit) (7,058,621) Total net assets $ 12,630,157 The accompanying notes are an integral part of these financial statements. -11- '7 k' Community Redevelopment Agency of the City of Grand Terrace Statement of Activities For the Year Ended June 30, 2010 PROGRAM EXPENSES Governmental activities: Community development $ 3,820,070 Passthrough payments 2,082,561 Project improvement costs 671,590 Interest on long-term debt 341,401 Total program expenses 6,915,622 GENERAL REVENUES Taxes: Incremental property taxes 7,894,018 Investment earnings 129,314 Intergovernmental 50,990 Total general revenues 8,074,322 Change in net assets 1,158,700 Net assets, beginning of year 11,471,457 Net assets, end of year $ 12,630,157 The accompanying notes are an integral part of these financial statements. -12- Fund Financial Statements Community Redevelopment Agency of the City of Grand Terrace Balance Sheet Governmental Funds June 30, 2010 Total Special Debt Capital Governmental Revenue Service Projects Funds ASSETS Cash and investments $ 1,309,418 $ 9,205,144 $ - $ 10,514,562 r Cash and investments with 1� fiscal agent - 1,300,000 1,300,000 Interest receivable 925' 9,940 13 10,878 Accrued revenue 414 - - 414 Due from other funds - 37,798 - 37,798 Due from City of Grand Terrace 300,205 4,306,745 - 4,606,950 Loans receivable 90,630 - - 90,630 Notes receivable 688,600 - - 688,600 Property held for resale 640,166 - 3,447,151 4,087,317 Total assets $ 3,030,358 $ 14,859,627 $ 3,447,164 $ 21,337,149 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 2,611 $ - $ 58,730 $ 61,341 r Accrued liabilities 2,175 - 3,253 5,428 Due to other funds - - 37,798 37,798 Due to other governments 84,864 1,005,251 - 1,090,115 Due to City of Grand Terrace - - 267,622 267,622 Deferred revenue 90,630 - - 90,630 Total liabilities 180,280 1,005,251 367,403 1,552,934 Fund Balances: Reserved for: Encumbrances - - 149,172 149,172 Debt service 1,300,000 - 1,300,000 Long-term advances receivable 300,205 4,306,745 - 4,606,950 Long-term notes receivable 688,600 - - 688,600 Property held for resale 640,166 - 3,447,151 4,087,317 Unreserved, reported in: Special revenue fund 1,221,107 - - 1,221,107 Debt service fund - 8,247,631 - 8,247,631 Capital projects fund - - (516,562) (516,562) Total fund balances 2,850,078 13,854,376 3,079,761 19,784,215 Total liabilities and fund balances $ 3,030,358 $ 14,859,627 $ 3,447,164 $ 21,337,149 The accompanying notes are an integral part of these financial statements. -13- ,n Community Redevelopment Agency of the City of Grand Terrace Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2010 Total fund balances of governmental funds $ 19,784,215 Amounts reported for governmental activities in the statement of net assets are different because: Long-term liabilities applicable to the Agency's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities--both current and long-term--are reported in the statement of net assets. Balances at June 30, 2010 are: Bonds payable (5,320,000) Less: deferred charge on refunding 212,795 Less: costs of issuance 183,273 --- ,800 -- - - Capital lease (2,086,889) Accrued interest payable (95,437) Net assets of governmental activities $ 12,630,157 The accompanying notes are an integral part of these financial statements. -14- Community Redevelopment Agency of the City of Grand Terrace Statement of Revenues, Expenditures,'and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2010 Total Special Debt Capital Governmental REVENUES Revenue Service Projects Funds Tax increment $ 1,579,178 $ 6,314,840 $ - $ 7,894,018 Use of money and property 30,023 48,298 50,993 129,314 -' Total revenues 1,609,201 6,363,138 50,993 8,023,332 EXPENDITURES Current: Economic development 865,489 - 485,011 1,350,500 Supplemental ERAF shift - 2,179,087 - 2,179,087 Pass-through payments - 2,082,561 - 2,082,561 Debt Service: Principal - 4,205,111 - 4,205,111 Interest and other charges - 576,618 - 576,618 -- e -- -- - Project improvement costs 333,868 - 337,722 671,590 Total expenditures 1,199,357 9,043,377 822,733 11,065,467 t '- Excess of revenues over (under) expenditures 409,844 (2,680,239) (771,740) (3,042,135) OTHER FINANCING SOURCES(USES) Issuance of debt - 2,162,000 - 2,162,000 Transfers in (out) (608,688) 258,688 350,000 - Transfers from(to)the City of Grand Terrace (122,510) 207,280 (33,780) 50,990 Total other financing sources (uses) (731,198) 2,627,968 316,220 2,212,990 Net change in fund balances (321,354) (52,271 (455,520) (829,145) Fund balances, beginning of year 3,171,432 13,906,647 3,535,281 20,613,360 Fund balances, end of year $ 2,850,078 $ 13,854,376 $ 3,079,761 $ 19,784,215 The accompanying notes are an integral part of these financial statements. -15- - r Community Redevelopment Agency of the City of Grand Terrace Reconciliation of the Statement of'Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2010 Net change in fund balances of governmental funds $ (829,145) Amounts reported for governmental activities in the statement of activities are different because: The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has an effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Issuance of debt s (2,162,000) ---- �n�4 of issuance ef-debt Principal payments on debt 4,205,111 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as - expenditures in governmental funds. Amortization of deferred charge on refunding (106,398) Amortization of costs of issuance (66,846) Amortization of premium 23,899 Change in accrued interest-expense 31,451 Change in net assets of governmental activities $ 1,158,700 The accompanying notes are an integral part of these financial statements. -16- 74 Notes to Financial Statements Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Summary of Significant Accounting Policies The accounting policies of the Community Redevelopment Agency of the City of Grand Terrace (the "Agency") conform to accounting principles generally accepted in the United States of America as applicable to government's. The Governmental Accounting Standards Board (GASB) is the primary standard setting body for governmental accounting and financial reporting principles. The following is -- a summary of the significant accounting policies. Description of the reporting entity The Agency is a component unit of a reporting entity which consists of the following oversight and component units: Reporting Entity: Oversight Unit: City of Grand Terrace Component Units: Community Redevelopment Agency of the City of Grand Terrace City of Grand Terrace Public Financing Authority The component unit financial statements contain information relative only to the Agency as a component unit which is an integral part of the total reporting entity. They do not contain financial data relating to the other reporting unit. The Agency was formed under Section 33000 et. Seq. of the Health and Safety Code. Its purpose is to prepare and carry out plans for improvement, rehabilitation and redevelopment of blighted areas within the territorial limits of the City of Grand Terrace. The City provides management assistance to the Agency and the members of the City Council also act as the governing body of the Agency. As of June 30, 2010, the Grand Terrace Project Area was the only project area formed by the Agency. Government-wide and fund financial statements The government-wide financial statements include a statement of net assets and the statement of changes in net assets which report information on all of the nonfiduciary activities of the Agency. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities are normally supported by taxes and intergovernmental revenues. -17- 'f S Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 1: Summary of Significant Accounting Policies (continued) The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment: Taxes and other items not properly included among program revenues are reported instead as general revenues. 1�y Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. Measurement focus, basis of accounting, and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied Grants and similar recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified-accrual basis-of accounting. .Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are �! collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes are considered to be susceptible to accrual and have been recognized as revenues in the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. The Agency reports the following major governmental funds: The Special Revenue Fund is used to account for the portion of the Agency's tax increment that is required to be set aside for low and moderate income housing and related expenditures. The Debt Service Fund is used to account for the accumulation of resources to be used for the repayment of Agency debt. The Capital Projects Fund is used to account for the financial resources used in developing the project area as well as the administrative expenditures incurred in sustaining Agency activities. -18- ,n Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 1: Summary of Significant Accounting Policies (continued) Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the government-wide to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, and then unrestricted resources as they are needed. Cash and investments The City of Grand Terrace maintains and controls cash and investment pools in which the City and Agency share. The government's cash and cash equivalents are cash or investments with original maturities of three months or less from the date of acquisition. Investments are reported at fair value which is determined using selected bases. Cash deposits are reported at carrying amount which reasonably estimates fair value. Receivables and payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or"advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Currently, the Agency does not have any business-type activities. Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. Property taxes The County of San Bernardino collects property taxes for the Agency. Tax liens attach annually as of 12:01 A.M. on the first day in March preceding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1, the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10 respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31. Property held for resale The Agency has acquired several parcels of land as part of its primary purpose to develop or redevelop blighted properties. The Agency records these parcels as land held for resale in its financial records. The land is being carried in the Special Revenue Fund and Capital Projects Fund at net realizable value, which is equal to cost. At June 30, 2010, net realizable value for land held for resale totaled, $3,447,151 in the Capital Projects Fund and $640,166 in the Special Revenue Fund with these amounts offset by a reservation of fund balance. -19- -�r Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 1: Summary of Significant Accounting Policies (continued) Long-term obligations In the government-wide financial statements; long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities column in the statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond �J premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. Fund equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary data General Budget Policies The Governing Board approves each year's budget submitted by the Executive Director prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the Governing Board. Supplemental appropriations, where required during the period are also approved by the Board., Intradepartmental budget changes are approved by the Executive Director. In most cases, expenditures may not exceed appropriations at the function level. At fiscal year-end all operating budget appropriations lapse. Budgets are prepared on the modified accrual basis of accounting. The legal level of budgetary control is the object level within a department. Encumbrances Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the governmental funds. Encumbrances outstanding at year-end are reported as a reservation of fund balance. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in-process at year-end are completed. They do not constitute expenditures or estimated liabilities. -20- 21 Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 III. DETAIL NOTES ON ALL FUNDS Note 2: Cash and Investments Cash and Investments as of June 30, 2010 are classified in the accompanying financial statements as follows: Statement of Net Assets: Cash and investments $ 10,514,562 Cash and investments with fiscal agents. 1,300,000 Total $ 11,814,562 Cash and Investments as of June 30, 2010 consist of the following: Pooled cash with the City of Grand Terrace $ 566) Investments pooled with the City of Grand Terrace 11,880,128 Total $ 11,814,562 Authorized investments The table below identifies the investment types that are authorized for the Agency by the California Government Code (or the Agency's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the Agency's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the Agency, rather than the general provisions of the California Government Code or the Agency's investment policy. Maximum Maximum Maximum Percentage Investment in Authorized Investment Type Maturity of Portfolio One Issuer U. S. Treasury Obligations 5 years None None Repurchase Agreements 1 year None None Certificates of Deposit 5 years None None Negotiable Certificates of Deposit 5 years 30% None Passbook Savings Accounts N/A None None Securities Issued by Federal Agencies 5 years None None Local Agency Investment Fund' N/A None None Mutual Funds N/A 20% 10% Pools and other investment structures N/A None None -21- Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 2: Cash and Investments (continued) Investments authorized by debt agreements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Agency's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table identifies certain provisions of these debt agreements that address interest rate risk, credit risk and concentration of credit risk. Maximum Maximum Maximum Percentage Investment in Authorized Investment Type Maturity Allowed One Issuer Government Obligations None None None FHLB's None None None FHLMC's None None None Farm Credit Banks None None None FNMA's _None Nona No^-,e ---..- .- Financing Corp Debt Obligations None None None Resolution Funding Corp Debt Obligations None None None Certificates of Deposit 360 days None None Deposits fully insured by FDIC None None None USAID Guaranteed Notes None None None Investment Agreements None None None Bankers Acceptances 360 days None None Municipal Obligations rated Aaa None None None Commercial Paper rated P-1 270 days None None Repurchase Agreements None None None Money Market Mutual Funds rated AAAm N/A None None Disclosures relating to interest rate risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Agency manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the Agency's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the Agency's investments by maturity: -22- Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 2: Cash and Investments (continued) 12 Months Investment Type Amount or Less Money Market Mutual Fund $ 193,981 $ 193,981 Certificates of Deposit 609,476 609,476 Local Agency Investment Fund (LAIF) 7,599,620 7,599,620 Local Gov. Invest. Pool (CAMP) 2,177,051 2,177,051 Held by Trustee: Money Market Funds 1,300,000 1,300,000 Total $ 11,880,128 $ 11,880,128 Disclosures relating to credit risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder statistical rating organization. Information about the minimum rating required by the California Government Code, the Agency's investment policy, or debt agreements, and the actual rating as of year-end for each type of investment held by the Agency can be found below. Minimum Investment Type Amount Legal Rating Actual Rating Money Market Mutual Fund $ 193,981 N/A N/A Certificates of Deposit 609,476 N/A N/A Local Agency Investment Fund (LAIF) 7,599,620 N/A N/A Local Gov. Invest. Pool (CAMP) 2,177,051 N/A N/A Held by Trustee: Money Market Funds 1,300,000 AAAm AAA Total $ 11,880,128 Concentration of credit risk The investment policy of the Agency contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U. S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of the Agency's investments can be found in the City of Grand Terrace's Annual Financial Report. -23- Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 2: Cash and Investments (continued) Custodial credit risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event- of the failure of the counterparty.(e.g., broker-dealer) to a transaction, a government will not be able to recover.the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Agency's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first deed mortgage notes having a value of 150% of the secured public deposits. For amount of deposits held in excess of federal depository insurance limits, see the City of Grand Terrace's Annual Financial Report. Investments in State Investment Pool The Agency is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the Agency's investment in this pool is reported in the accompanying financial statements at amounts based upon the Agency's pro-rata share of the fair value provided by LAW for the entire LAW portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained .by LAIF, which are recorded on an amortized cost basis. Pooled cash The Agency follows the practice of pooling cash and investments of all funds except for funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the cash balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. -24- Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 3: Due from City of Grand Terrace and Due to City of Grand Terrace !Nullified Pass-Through Agreement The Agency entered into a settlement agreement with County of San Bernardino on March 6, 1980, which included full pass-through of taxes allocated to .City of Grand Terrace. In 1997, the Agency determined that such pass through to the City of Grand Terrace was, at that time, in violation of the Health and Safety Code. The Agency voluntarily took the necessary steps to correct such error by restating all financial-statements of the Agency and reclassifying the pass-through expenditures as a receivable from the City. The tax increment revenue on the City's books was reclassified to a payable to the Agency. Borrowings from the Redevelopment Agency Between 1994 and 1999, the City borrowed funds from the Agency as documented through the budget appropriation process. Other Transactions In 2001, the Agency transferred property to the City and recorded a receivable from the City. In 2003, the City transferred funds to the Agency for property acquisition. The activity on Due from City of Grand Terrace is as follows: Tax Loan to - Increment General Interest Payments Balance Date Misallocation Fund Other Posted (Credits) Due 1980 - 06/30/97 $ 4,326,428 $ - $ - $ 283,496 $ (2,596,296) $ 2,013,628 06/30/94 - 650,000 - - - 650,000 06/30/95 - 750,000 - - - 750,000 06/30/97 - 393,684 - - - 393,684 06/30/98 - 432,822 - - - 432,822 06/30/99 - 225,036 - - - 225,036 06/30/01 - - 141,780 - - 141,780 Total $ 4,326,428 $ 2,451,542 $ 141,780 $ 283,496 $ (2,596,296) $ 4,606,950 -25- �c Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 3: Due from City of Grand Terrace and Due to City of Grand Terrace(continued) The activity on Due to City of Grand Terrace is as follows: Payments Balance Date Other (Credits) Due 06/30/03 $ (538,838) $ 271,216 $ (267,622) Total $ (538,838) $ 271,216 $ (267,622) On June 22, 2010, the Agency adopted Resolution 2010-04 and the City adopted Resolution 2010- 15, in which the cumulative interagency borrowings are memorialized and sets forth a repayment plan by the City to the Agency subject to available funds. Note 4: Loans Receivable The Agency has provided deferred rehabilitation loans to qualifying low and moderate income households from its 20 percent set-aside funds. A corresponding deferred revenue _is recorded accordingly. The balance at June 30, 2010 is $90,630. Note 5: Property Held for Resale Special Revenue Fund This amount represents the costs associated with the purchase and renovation of low and moderate income housing held for resale. Fund balance has been reserved for this amount. The balance at June 30, 2010 is $640,166. Capital Projects Fund This amount represents the costs associated with the purchase of vacant land held for future development. Fund balance has been reserved for this amount. The balance at June 30, 2010 is $3,447,151. Note 6: Notes Receivable The amount of $688,600 in notes receivable is related to sales of low and moderate income housing. The notes are payable on or before the sale or refinance of the subject property, and are secured by second deeds of trust. Due to the noncurrent nature of the above receivables, fund balance has been reserved accordingly. -26- Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 7: Long-term Debt a. 1997 Refunding Certificates of Participation The Agency has accepted the responsibility of making the debt service payments for the 1997 Refunding Certificates of Participation for the past several years. The 1997 issuance was a refunding of the 1991 Lease-Revenue Bonds. The proceeds of the 1991 issuance were used to construct a childcare center, the Pico Park project, and the Grand Terrace parkside improvement project. The 1997 Refunding Certificates of Participation were refunded on ` September 1, 2009 from the proceeds of a new lease agreement and additional City funds. b. 2004 Refunding Tax Allocation Bonds In August of 2004, the Agency issued the $13,000,000 Refunding Tax Allocation Bonds, Series 2004. The Bonds were issued to refund the $3,695,000 outstanding Tax Allocation Bond Series 1993 A, the $1,290,000 outstanding Zions First National Bank loan, the $2,780,000 outstanding Tax Allocation Bond Series 1993 B, and to finance certain redevelopment activities of the Agency. Interest varies from 2.00% to 3.75% and is payable semiannually on March I and September 1, commencing March 1, 2005. Principal payments are due annually commencing March 1, 2005 through September 1, 2012. The Agency deposited $8,241,183 of the proceeds in an irrevocable trust and purchased U.S Government State and Local Government Securities for the purpose of generating resources which will be used to call the bonds. As'a result, the refunded bonds are considered to be defeased and the liability has been removed from the statement of net assets. The reacquisition price exceeded the net carrying amount of the old debt by $851,183. This amount is being netted against the new debt and amortized over the remaining life of the new debt. This advance refunding was undertaken to reduce total debt service payments over the next 14 years by $464,691 and resulted in an economic gain of$631,303. Debt service payments to maturity for the 2004 Refunding Tax Allocation Bonds are as follows: Year Ending June 30, Principal Interest 2011 $ 1,670,000 $ 161,925 2012 1,720,000 104,625 2013 1,930,000 36,188 Total $ 5,320,000 $ 302,738 -27- Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 7: Long-term Debt(continued) C. Zions Lease On August 28, 2009, the City entered into a Lease Agreement (Lease) with Zions First National Bank in order to refinance the City of Grand Terrace Refunding Certificates of Participation, Issue of 1997, which was issued to finance city hall and other public improvements. The City used the proceeds of the Lease $2,162,000 and funds on hand of $358,000 to current refund the $2,520,000 of outstanding 1997 Certificates of Participation. Under the Lease, the City is to lease property to Zions and in return Zions will lease the property back to the City in consideration of the payment by the City of semiannual lease payments commencing March 1, 2010 through September 1, 2020 at 4.6% interest. Debt service payments to maturity for the 2009 Zions National Bank lease are as follows: Year Ending June 30, Principal Interest 2011 $ 157,362 $ 97,485 --- qn, 2 ----- - 2013 172,887 81,961 2014 181,213 73,633 2015 189,943 64,906 2016-2020 1,096,080 178,157 t� 2021 124,462 2,962 Total $ 2,086,889 $ 589,010 d. The following is a schedule of changes in long-term debt of the Agency for the fiscal year ended June 30, 2010: Beginning Ending Due Within Balance Additions Deletions Balance One Year Bonds payable: 1997 Refunding Certificates of Participation $ 2,520,000 $ - $(2,520,000) $ - $ 2004 Refunding Tax Allocation Bonds 6,930,000 - (1,610,000) 5,320,000 1,670,000 Less deferred amounts: On refunding (319,193) - 106,398 (212,795) - Plus premium on issue 71,699 - (23,899) 47,800 - Total bonds payable 9,202,506 - (4,047,501) 5,155,005 1,670,000 Capital leases: Zion National Bank - 2,162,000 (75,111) 2,086,889 157,362 Total capital leases - 2,162,000 (75,111) 2,086,889 157,362 Total long term liabilities $ 9,202,506 $ 2,162,000 $(4,122,612) $ 7,241,894 $ 1,827,362 -28- Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 8: Interfund Transfers Interfund transfers for the year ended June 30, 2010 are as follows: Fund Receiving Transfers Fund Making Transfers' Amount Capital Projects Special Revenue $ 350,000 Debt Service Special Revenue 258,688 -' $ 608,688 The transfer from the Debt Service Fund was made to cover the negative cash balance in the Capital Projects Fund. The transfer from the Special Revenue Fund into the Debt Service Fund was made for debt service payments due on the 2004 Tax Allocation Bonds. Note 9: Agreements With Varying Taxing Agencies In order to lessen the fiscal impact of the tax increment financing of redevelopment projects on other units of local governments, the Agency has entered into pass-through agreements with various governmental agencies to pass-through portions of tax increment funds received by the Agency, attributable to the area within the territorial limits of the other agencies. The amount passed through for the fiscal year ended June 30, 2010, was $2,082,561. These payments were recorded as expenditures in the Debt Service Fund. In addition, the Agency was required to transfer tax increment in the amount of$110,362 to the State of California's Education Revenue Augmentation Fund (ERAF) for the fiscal year ended June 30, 2010. Note 10: Supplemental Educational Revenue Augmentation Fund On July 24, 2009, the State Legislature passed Assembly Bill (AB)X4-26, which requires redevelopment agencies statewide to deposit a total of $2.05 billion of property tax increment in county "Supplemental" Educational Revenue Augmentation Funds (SERAF) to be distributed to meet the State's Proposition 98 obligations to schools. The SERAF revenue shift of $2.05 billion will be made over two years, $1.7 billion in fiscal year 2009-2010 and $350 million in fiscal year 2010-2011. The SERAF would then be paid to school districts and the county offices of education which have students residing in redevelopment project areas, or residing in affordable housing projects financially assisted by a redevelopment agency, thereby relieving the State of payments to those schools. The City's (Agency's) share of this revenue shift was $2,179,087 for fiscal year 2009-2010 and $448,211 for fiscal year 2010-2011. Payments are to be made by May 10 of each respective fiscal year. In response to ABX4-26, the Agency funded the SERAF payment due in May 2010 with the Debt Service Fund. -29- nr Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 10: Supplemental Educational Revenue Augmentation Fund (continued) The California Redevelopment Association (CRA) is the lead petitioner on a lawsuit to invalidate ABX4-26, similar to last year's successful lawsuit challenging the constitutionality of AB 1389. CRA filed the lawsuit on October 20, 2009. The lawsuit asserted that the transfer of property tax increment to the SERAF is not permitted under Article XVI, Section 16 ,of the California Constitution. The complaint also asserted impairment of contract and gift of public funds arguments. While the State made adjustments in ABX4-26 to address the constitutional issues raised by the Superior Court over - last year's lawsuit challenging AB 1389, the Agency, along with the CRA and other California redevelopment agencies, believe that the SERAF remains unconstitutional. In May 2010, the Superior Court upheld the legality of ABX4-26. In August 2010, the CRA filed an appeal with the Third District Court. Note 11: Joint Venture On July 16, 1991, the Community Redevelopment Agency of the City of Grand Terrace entered into a Joint Powers Agreement with the City of Grand Terrace to establish the, Grand Terrace Public Financing Authority. The Authority was created to facilitate financing for public capital im{�rovernents - --- benefiting e City an Agency. No separate financial statement data are presented; the transactions of the Authority are recorded in the governmental funds of the City of Grand Terrace. Note 12: Contingencies r ) / As of June 30, 2010, in the opinion of the Agency, there are no outstanding matters, which would have a material effect on the financial position of the Agency. The Agency has received funds for specific purposes that are subject to audit by the State. Although such audits could generate differences under the regulations of the Health and Safety Code, it is believed that any required reimbursements will not be material. -30- A 4 Required Supplementary Information n: Required Supplementary Information Community Redevelopment Agency of the City of Grand Terrace Budgetary Comparison,Schedule - Major Special Revenue Fund For the Year Ended June 30, 2010 Variance with Final Budget Budgeted Amounts Actual Positive REVENUES Original Final Amounts (Negative) Tax increment $ 1,446,200 $ 1,446,200 $ 1,579,178 $ 132,978 Use of money and property 133,399 133,399 30,023 (103,3716) Total revenues 1,579,599 1,579,599 1,600,201 29,602 EXPENDITURES Current: Economic development 1,247,907 1,234,415 865,489 368,926 Capital outlay: Project improvement costs - - 333,868 (333,868) Total expenditures 1,247,907 1,234,415 1,199,357 35,058 Excess of revenues over expenditures 331,692 345,184 409,844 64,660 OTHER FINANCING USES Transfers out (613,577) (613,577) (60.8,688) 4,889 Transfers to the City of Grand Terrace (141,682) (141,882) (122,510) 19,172 Total other financing uses (755,259) (755,259) (731,198) 24,061 Net change in fund balance (423,567) (410,075) .(321,354). 88,721 Fund balance, beginning of year 3,171,432 3,171,432 3,171,432 - Fund balance, end of year $ 2,747,865 $ 2,761,357 $ 2,850,078 $ 88,721 --31- d-4 Governing Board Community Redevelopment Agency of the City of Grand Terrace Grand Terrace, California Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards We have audited the financial statements of the governmental activities and each major fund of the Community Redevelopment Agency of the City of. Grand Terrace (the Agency), a component unit of the City of Grand Terrace,.California, as of and for the year ended June 30, 2010, which collectively comprise the Agency's basic financial statements and have issued our report thereon dated November _, 2010. We 'conducted our audit in accordance with auditing standards generally States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing our audit, we considered the Agency's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control over financial reporting. Accordingly, we do not express an opinion,on the effectiveness of the Agency's internal control over financial.reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Agency's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. However, we identified a deficiency in internal control over financial reporting, described in'the accompany schedule of findings as Finding 2010-01, that we consider to be significant deficiencies in internal control over financial reporting. A significant deficiency is a deficiency, or a combination of deficiencies, .in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. 1 -32- Compliance and Other Matters As part of obtaining reasonable assurance about whether the Agency's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions included those provisions of laws and regulations identified in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the State Controller and as interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, issued by the Governmental Accounting and Auditing Committee of the California Society of Certified Public Accountants. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed one instance of noncompliance that is required to be reported under Government Auditing Standards and which is described in the accompanying schedule of findings and recommendations section of the report as finding number 2010-02. We noted certain matters that we reported to management of the City of Grand Terrace, California, in a separate letter dated November 2010. The Agency's response to the findings identified in our audit are described in the accompanying schedule of findings and recommendations. We did not audit the Agency's responses and, accordingly, we express no opinion on them. This report is intended solely for the information and use of the Governing Board and management and is not intended to be and should not be used by anyone other than these specified parties. November—, 2010 -33- nr Community Redevelopment Agency of the City of Grand Terrace Schedule of Audit findings June 30, 2010 SIGNIFICANT DEFICIENCY Finding 2010-01 Bank Reconciliations Observation Bank statements in some instances were accumulated for several months before they were reconciled to the appropriate general ledger controls. Not reconciling the accounts on a monthly basis means that errors or other problems might not be recognized and resolved on a timely basis. Also, it is generally easier and less time-consuming to reconcile accounts while transactions are fresh. Recommendation We recommend that all bank accounts be reconciled each month. -34- A r i Community Redevelopment Agency of the City of Grand Terrace Schedule of Audit finding_s June 30, 2010 COMPLIANCE FINDINGS Finding 2010-02 Condition Pursuant to California Health and Safety §33080,01, the agency "shall present an annual report to its legislative body within six months of the end of the agency's fiscal year." The Agency's annual report shall consist of the following: • Blight Progress Report • Property Report The above information was not provided to the legislative body in a timely manner, if submitted. Recommendation e recommend submitting the required reports to the legislative body no later than six months after then end of the Agency's fiscal year. Agency Response The Agency agrees with the above condition and will implement the recommendations immediately. -35- A7 FY 2009- 10 RDA Annual Report of Financial Transactions a REDEVELOPMENT AGENCIES FINANCIAL TRANSACTIONS REPORT COVER PAGE Entity Name: Crm ---Sstn�_ Fiscal Year 2010 ID Number: 139z3'2 (o6" Submitted by: Signature Title Name(Please Print) Date --- Par Heeuham Safety Coda section aanan Wreport In within six months aRK the and of the Iseel yeah The mpert is to — - — include two(2)copies of the agencys component unit audited Mandel statements,and Qte report on the Status and Use of the Low and Moderate Income Housing Fund(HCD report). To meet the filing requYernents,all portions must be received by the California State Controllers Office. �f To file electronically: To file a paper report: 1.Complete all forms as necessary. 1.Complete all forms as.necessary. 2.Transmit the completed output file using a File 2.Sign this cover page,and mall complete report to e#Jw address Transfer Protocol(FTP)program or via diskette. below with 2 audits and the HCD report &Sign this cover pegs and mall la ember address beber with 2 audits and the HCD report Report will not be considered filed until receipt of this sued cover,page. Mailing Address: Express Mailing Address: State Controller's Office State Controller's Office Division of Accounting and Division of Accounting and Reporting Reporting Local Government Reporting Section Local Government Reporting Section 3301 C Street, Suite 750 P. O. Box 942850 Sacramento, CA 95816 Sacramento, CA 94250 no i Agency Name: Redevelopment Agencies Finandal mroactlons Report General Infonnadw Fiscal Year 2010 Members of the Governing Body AgW7►�� Middle MiddleLast Nana Flrst Name Initial Ink ct ta Nan» FIM Name InHW Chalrpenion ExmOve Olrector L� Member Fiscal Officer Member s.crbry Member F*part Plopm By bxkpmWwtAuatoor Member Firm Ware Member Last Member �_ Fln t em Mber � � Middle INtlal em Mber Sweet Member Clly MAIng Addrsas Sfate ZIP Code Stet 1 Phone Sbeet2 City Stab ® ZIP Phone ❑ Is Address Chanped? General hdamrntlon Pape 1 i 1 n � Agency Name: Redevelopment Agencies Financial mneacdons Report Achlevmerd Infonnadon(U udibd) Fiscal Year 2010 Indicate Oniy Those Achlevernmale Completed During the Fiscal Year of this Report as a DInd,Result of the Activities of the Redevelopmerrt Agency. Please provide a descripfim of the agenc/s Square Footage Completed acowlies/accmrpYatmanb during the past Fifer amount of square bofage Yew. c jI,1 d fhia yew by building (Please be spec fc,as 6*Odbanedan wi be type am segmgafed by new or New Rehab0ltated she basis brpossrble induslon in fire retabilit ted aonsbuc rout Construction p •) *Raw Cam ffcial Buildings hrdwtrr Buildings Pubic IBuildinga Oftw juldings Tola Square Footage Ester It e Number of Jobs Created from IN AdMiles of the Agency Types Ar-UIM as B=Recemon CAandscapirq O=Sewed Storm EStrads/Roads F=Busf rraraft Adrievernert Inbmraflon(l wx t" Page 1 I n i I Agency Name: Redevelopment Agencies Financial Tram actions Report Audit IMomnllon Fiscal Year 2010 Was the Report Prepared from Audited Financial Data. �5 if fiance opinion Includes exceptions, and Did You Submit a Copy of the Audit? state the areas of non-tomp0ance.and describe the agents efforts to coned. Indicate Financial Audit Opinion ,^ If Financial Audit is not yet Completed,VVhat Is the Expected Completion Dale? If the Audit Opinion was Other than Unqualified,State Briefly the Reason Ghren Was a Compliance Audit Performed In Accordance with Health and Safety Code Section 33080.1 and the State Controkes Gul Wkm for Compliance Audits.and Did You Submit a Copy of-the Audit? Indicate Compliance Audit Opinion If Compliance Audit is not yet Completed.What Is the Expected Completion Data? Audit lnforrrration Page 1 .ni Agency Name: Redevelopment Agencies Financial Transac dons Report Project Area Report Fiscal Year 2MO Project Area Name Please Provide a Brief Description of the Activities for this Project Area Forwarded from Prior Year 9 During the Reporting Year. Enter Code for Type of Project Area Report Activity Report. P=Standard Project Area Report A=Administrative Fund L=Low and Moderate Income Housing Fund M=Mortgage Revenue Bond Program O=Other Misceilaneous Funds or Programs S=Proposed(Survey)Project Area Does the Plan Indude Tax Increment Provisions? O—t, Date Project Area was Established (UAf-DD- Most Recent Date Project Area was Amended V Did this Amendment Add New Territory? Most Recent Date Project Ares was Merged , VWI this Project Area be Carried Forward to Next S Established Time Limit: Repayment of Indebtedness (Year Only) Zp Effectiveness of Plan (YearOMy) Newindebtedness rerOnW -yp Size of Project Area In Aces 2 Percentage of Land Vacant at Ifre Inception of the roJect Area Health and Safety Code Section 33320.1 Percentage of Land Developed at the Inception of Project Area $ Health and Safety Code Sacthn 33320.1 (ran. ) Objectives of the Project Area as Set Forth in the P act Area Plan (Enter the Appropriate Code(:)in Sequence asDown) R=Residential I=lydu*W C= P-Public O-O@mr Project Area Report Page 1 n u � i Agency Name: Redevelopment Agencies Flnanchl Transactions Report Assessed Valuation Date Fiscal Year 2010 Project Area Name �pc�ctcSZ Q Qr Frozen Base Assessed Valuation 7. 16a I 1 Increment Aweased Valuation 1 Total Assessed Valuation Assessed Valuation Data Pape t n Agency Name: Redevelopment Agencies Flnanchd Tram iactions Report Pass-Through/School District AwIM wee Fiscal Year 12010 Project Area Name Tax lncn wM Pas Through Mall other Paymer" Amounts Paid To Ta)dng H i S Cods H&S Cods H 9 S Cods Totd H&S Cods H&S Cod@ Agendas Pursuant To: Section 33401 Section 33676 Section 33607 Section 33446 Section 3344&6 County Cities Sdwd Dispicts Comrrx *Calege Distfids Special Districts Total Pall to Taxing Agendas Not Amount to Agency Gross Tax inaement Generated Pass-Through 1 Sdwd Dbirict Assistance t � I � i Agency Name: Redevelopment Agencles Financial Tmnsa ons Report Capital Improvammit DOW Fiscal Year 2010 Protect Area Name De3crIpdon Name of Toxin Agency Amount Code Section Capital WW&MfmM DoW Pape 1 11\ Agency Name: Redevelopment Agencies Financial Transactions port Summary of the Statement of Indebtedness-Project Aref Flacal Year 2010 Project Area Name Tax Allocation Bond Debt Revenue Bonds ` 5 Other Long Term Debt Cily/Courdy Debt Low and Moderate Intone Housing Fund Other LT OLE—ag] Total 7,741 J.ZIr Available Revenues Net Tax Increment Requirements BZ7,.A4VW Summary of the Statement of Indebtedness-Project Area Pope 1 I n ' J I Agency Name: Redevelopment Agencies Financial Tan ona Report Agency Long-Term Debt Fiscal Year Now Pro ect Area Name Forward from Prim Year Bond Type Year of AuMwrizatlan Prncipal Amount Authorkmd `\ Principal Amount Issued (� Purpose of Issue Q u-V Maturity pale Beginning Year Mandty Gate Ending Year Pdncipal Amount Urmehnad BapinnMg of Fiscal Year Adkatmert Made DwIng Year A4usfrnent Explanation Interest Added to Prindpel Principal Amount Issued During Fiscal Year Principe!Amount Matured During FIscrl Year P mMW Amount Defeased During Facal Year Principal Amount Urmatured tend of Fiscal Year Principal Amount In Default Interest In Default ftndTypnAfln Tax Attxation Bonds:Revenue Bads;CertiBrales of Participation;Tax Allocation Notes;FinancingAuborkyBaxIs;CRyCocrty Debt US;State;!.oars; i Lease Obligations:Notes:Deterred Pass-Throrphs;Deemed Campasatian;other Agency Long-Term Debt ` pap 1 1 - r Agency Name: Redevelopment Agencies Financial Tnitnaactlom i Report Non,Agoncy Long-Term Debt Fiscal Year 12010 Project Area Name Forward*om Prior Yaw Bond Type Year of Authorizatim Principal Amount Authorized Principal Amount Issued Purpose of Issue <\� Maturity Date eepYrirrg Yew � `\�G� Maalty Data Ending Year Principal Amount Unmatured Beginning of Foal Year Adjustmernt Made During Year ` Adjustment Explwmkm Principal Amount Issued During Fiscal Year Pnrxipal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year Principal Amount in Default Interest in Default Bond Types Allowed: Mortgage Revenue:Industrial Development Commercial Revenue Bond;Certificate of Participation NornAger y Long-Term Debt Page 1 i i I n D � I I Agency Name: Redevelopment Agencies Flnanclal Transactloga Report Statement of Income and Expenditures-Raven Fiscal Year 12010 7 Project Area Name Lovrllloderate Special Cspltal Project Debt Sunioe Income Housing RmnuefOt w Total Funds Funds Funds Funds Tax Increment Gross ( ads) ,peal&q* ental sue, Property A.ssessrrbrrts Sales ad Use Tax Transient Ooaparwy Tax Interest Income �Z Renrai Inoome Lease Income Sale of Real Estate Gain on Lard Held far Resale Federal Grans Grants from OVw Agendes lard Adn*istrabw Fees Other Rarrerures Total Revinuss ISO CIR3 I CORPS 166 1 1 w?p Stawmen t of Inoome and avwWkm-Ra w%ws Page 1 I Agency Name: Redevelopment Agencies Financial Transa ns Report Statement of Income and Erw"4ures-Expence unse Fiscal Year 12010 Project Area Name CapHM Project Debt Service LowdMadw do SPaoW Funds Funds Inane Now Ing RevenuslOdw Total Adrninisradw Costs ti �,( � V t at\) Professional Services Plamng,Surrey.and Design Real Estde Punhases Aoquisrhon Eqense Operation of Acquired Properly Rek)csbm Costs Rel wdw Payments Site Clearance Costs Ned ImPovement/Construction Coats 2;2- DISPOSW Costs Loss on DisposMan of Land Held for Resale Statemert of kw=and Ewditures-FverdiUm Page 1 r � J Agency Name: Redevelopment Agencies Financial Transa Report Statsrnam of Income and Expenditures- res Fiscal Year 12010 Project Area Name Capital Project Debt Service Lowillilodwas special Funds Funds IncomwHoWng Revenuefother Total Dedne in Value of Land Held for Resale Roman Costs Rehablltalion Grants interest Fxpense CA F6red Asset Acqulsltlors SuWdles to Law and Moderate Income Housing Debt Issuance Costs OUrer Expenditures Irrc WkV Pass- Tftuo Paj Twd(e) Debt Principal Payments: r� ��— Tax Allocation Bonds and Notes Revenue Bonds,Cer6Antes of Participation,Financing Authority Bonds CitylCounly Advances and Loans Al Other Long-Term Debt Total Expenditures I L r n a, 19XV43,3111Z i Excess(Ddklency)Revenues over LLIQR Z3T{ -['11 r�� (under)Expendituresr' k)L-W' Statement of Income and ExpendlRies-Expendlures Page 2 J I Agency Name: Redevelopment Agencies Financial Tra acdons Report Statement of Incomether I and Expenditures-Oinancing Sources Fiscal Year 12010 Project Area Name capital Projed Debt Sewia LoW dodersts Sped- Funds Funds Incorn i Housing Revenuelother Told Proceeds of Long-Tenn Debt Proceeds of Rehadbg Bonds Payment to Refunded Bond Esrrow Agent Advances iron CIty/County 156 V 1zz sl Sale of Fbwd Assets Nscella m, FnancM Sources(Uses) Operating Transfers In 10 3S0 000 1 Z Tax Increment Transfers In Operating Transfers Out Tax Increment Transfers Out (To the Low and Afoderob income Housing Fund) Total Other Financing Sources(Uses) 320,7.20 1 2,41,73 (r$ vv7 l lQ6 Statement of Income and E gmxkbxes-Odw Fhmndrg Sources Page 1 I i 71 dU ! Agency Name: Redevelopment Agencies Rnanclal Train sactlons Report Stateniod of Income and Expenditures-Other F Inancing Sows Fiscal Year 12010 Project Area Name capital Project Debt service LowWl loderate Special Funds Funds Inconm Housing Ravanual tither Total Excess(Defkiency)ORevenues and 4S'S-I Zo� . 351 WI1 _ _(," ,7 Odwr Financing Sources over Expenditures and Other Financing Uses Equity.Bgirning of Penod Prior Period AdMonerrfe Residual Equity Tramsfers Otho4Spsdfy) A B c D E �"fash Total Other Total Equity,End ofPertod o�q,7b 13e$64�37 ZI �b'? SlAwnent of krone and Exp WUx=-Obw Fnsndmg&xff= Page 2 n - Agency Name: Redevelopment Agencies Financial mneactlons Report Balance Sheet-Assets and 0 t1w Debit 1,00111lod.nab I Special Fiscal Year 2010 caplW Pro" Debt Service Income Hominy uefOther General Long. General Fired Funds Funds Funds Funds Tenn Debt Assets Total Assets and Other Debits Cash and Imprmt Cash j I Lf Cash with Fiscal Agent Tax kraemenls Receivable Accowft Readvable Acoued Interest Receivable I IS I QqL40 Loans Recdvahe Q Contrads Receivable (per lease Payments Receivable Unearned Finance Charge Due from Capital Pr*cts Fund Due from Debt SerNoe Fund Due from Law Werate kx me Housing Fund Due ftom Special Reverweg)the►Funds 431,4�SLt 3 Balance Sheet-Assds and Other Debits Pa"I 1 T I Agency Name: Redevelopment Agencies Flnanclal TmnmcWns Report Balance Shot-Asssts and LowlModerM 7szl Fiscal Year 2010 CqM Prafem Debt Swvlcs Inowns Housing uslOtlw Genwal Long. Ganaral Fixed Funds Funds Funds Funds Teen Debt Animals Tatd ImesLnerda Other Assets Investmerdm:Land Held for 1,9.1440.15 Resale Ak mence for Dedine In Value of Land Held for Resais Fixed Assets:Land, Sktmh es,and Improvements Eguipmerd Amount Aval"In Debt Service Fund Arnount to be Provided for Papua of Lang-Term Debt Total A and Other 3r r L(pq 1L1'K31'627Debits 3r 03or 3 (Must Equal ToW Lfa maes, Other Cred"ts,and Egmbe4 B3alertoe Sheet-Assda and other Debits \ pop 12 � I n Agency Name: Redevelopment Agencies Financial Transactions Report Balance Stoat-LbbWd"and C dw Credls LOva'tiloderate spaClal Placid Yaw 2010 Capital Prof Dom Servioa Inooma Nouslnp Ravenuarodwr Ganwal Long- Ge wral Fbzad Funds Funds Funds Funds Tans Debt Asests TOW / LIaWM=and Other Credits Accents Payable I 5W,1 in west Payable Tax Anticipation Niles Payable Loans Payable Other LWbbm Due to Capital Projects Fund Due to Debt Savioe Furl Due to LovdModerale Income Houz"Fund Due to special ISL 4 ZIO 0052 1 S RerenueK her Funds Tax Allocollon Bartle PayaWe Iaase Revenue,Certificates of Participation Payable, Fhww g Aull o Bonds AN Other Long-Tenn Debt total Uablilties and Other 3(.P'7 R03, L10045,751 3&4*410111, Cmdhs I gO r'Z80 Balance Shoat-UaMaa and Odw Cnxib pap i n J i Agency Name: Redevelopment Agencies Financial Transactions Report Balance Shalt-UnbVides and C Ow Credits LwaINk isrsts Special Fiscal Year 2MG Capital projects Dept Service incorna Housing RevanusiOthor General Lang- General Fixed Funds Funds Funds Funds Term Debt Awls Tatd Equities Investrnerd In General Fond Assets Furl Balance Reserved 3 y Z' Fund Balance 5 V Z 2 (03i s-ZI Fund Balance U Total Equities 7(p (� . SZ>S Z16 550-7 Total Liabilities, Other Credits, and Equities 1 ` � 6z7 303b�s Balance Sheet-UWAbas and Other Craft pop CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT REDEVELOPMENT AGENCY ANNUAL HOUSING ACTIVITY REPORT FY ENDING: 6/30/2010 Agency Name and Address: County of Jurisdiction CRA of the City of Grand Terrace San Bernardino Did the Agency pay SERAF from LMBIF? ❑Yes ®No Health&Safety Code Section 33080.1 requires agencies(RDAs)to annually report on their Low&Moderate Income Housing Fund and housing activities for the Department of Housing and Community Development(HCD)to report on RDAs'activities in accordance with Section 33080.6. Please answer each question below. Your answers determine how to complete the HCD report. 1. Check one of the items below to identify the Agency's status at the end of the reporting period: ❑ New(Agency formation occurred during reporting Year. No financial transactions were completed). ® Active(Financial and/or housing transactions occurred during the reporting year) ❑ Inactive(No financial and/or housing transactions occurred during the MMgMm ear). ONLY COMPLETE ITEM 7 ❑ Dismantled(Agency adopted an ordinance and dissolved itself before start of reporting year). ONLY COMPLETE ITEM 7 2. During reporting vest.how many adopted project areas existed? Of these,how many were merged during veer? If the agency has one or more adopted rxoiect areas.complete SCHEDULE HCD-A for each nrWrd area. If the agency has no adopted project areas DO NOT complete SCHEDULE HCD-A(refer to next question). 3. Within an area outside of any adopted project area(sy (a)did the agency destroy or remove any dwelling units or displace any households over the reporting period,(b)does the agency intend to displace any households over the next reporting period,(c)did the agency permit the sale of any owner-occupied unit prior to the expiration of land use controls over the reporting period,and/or (d)did the agency execute a contract or agreement for the construction of any affordable units over the next two years? ❑ Yes(any question). Complete SCHEDULE HCD-B. ® No(all questions). DO NOT complete SCHEDULE HCD-B(refer to next qucstio _ 4. Did the agency's Low dt Moderate Income Housing Fund have any assets during the reporting period? ® Yes Complete SCHEDULE HCD-C. ❑ No. DO NOT complete SCHEDULE HCD-C. 5. During the reporting period,were housing units completed within a Rmect area and/or assisted by the aSgttry outside a pEject area? ® Yes Complete all applicable HCD SCHEDULES DI-D7 for each horrslnr prod commmnleted and HCD SCHEDULE E. r 1 ❑ No. DO NOT complete HCD SCHEDULES D I-D7 or HCD SCHEDULE E. 6. Specify whether method A and/or B was used to report financial and housing activity information to HCD: ® A Forms. All required HCD SCHEDULES A.B,C,Dl-D7,and E are attached. ❑ B. On-line(http://Www.had ca.gw/rdal)"Lock Report"date: . HCD SCHEDULES not requited. (lock date is shown under 'Adndnr"Area and'Report Charge History') 7. To the best of my knowledge: (a)the representations made above and(b)agency information reported are correct. Date Signature of Authorized Agency Representative Title Telephone Number • IF NOT REQUIRED TO REPORT,SUBMIT ONLYA PAPER COPYOF THIS PAGE • IF REQUIRED TO REPORT,AND REPORTING BY USING PAPER FORMS(IN PLACE OF REPORTING ON-LINE),SUBMIT THIS PAGEAND ALL APPLIC4BLE HCD FORMS(SCHEDULES A E)W1THA COPY OFAGEIVCY'S AUDIT. • IF REPORTING OX-LINE,PRLW.4ND SUBMIT"CONFIRM.4TIONLETTER"UPONLOCK NG REPORT • 3L 1L A.COPY OF(a)CONFIRMATTON LETTER(IF'HCD REPORT WAS ELECTRONICALLY FILED)OR(b)COMPLETED FORMS AND(c)AUDIT REPORT TO BOTH HCD AND THESCO• Department of Housing&Community Dewiapmmment The Sate Camtroller Division of Housing Policy Division of Accounting and Reporting Redevelopment Section Local Go► m ment Reporting Section 1800 P Street,Suite 430 3301 C S&eet Suite 500 Sacramento,C4 95814 Sacramento,C4 95816 Redevelopment Agency.annual Report-Fiscal Year 2009-2010 WD-Cover (Revised 10-13-10) Page 1 of 1 7t SCHEDULE HCD-A Inside Project Area Activity for Fiscal Year that Ended 6/30/2010 Agency Name:CRA of the City of Grand Terrace Project Area Name:Grand Terrace Community Redevelopment Project Area Preparees Name,Title:Jane Carlson.Analyst RSG Inc. Preparees E-Mail Address:icadsonaa).webrse.com Preparer's Telephone No:714-316-2123 Preparer's Facsimile No:714-541-1175 GENERAL INFORMATION 1. Project Area Information a. 1.Year 1't plan for project area was adopted: 19981 2. Year that plan was last amended(if applicable): 2010 3. Was plan amended after 2001 to extend time limits per Senate Bill 211(Chapter 741,Statutes of 2001)?Yes No 4. Cum expiration of plan: 7/ 151 2024 mo day yr b. If project area name has changed,give previous name(s)or number: c. Year(s)of any mergers of the project area: Identify former project area that merged: d�Y (s)pluift-t area plan was amended involving rml pmperty that either. -- (1) Added property to plan: 1981. (2) Removed property from plan: 2. Affordable Housing Replacement and/or Inclusionary or Production Requirements(Section 33413). tt %� Pre-1976 VEpject areas not admq rg&amended after 1975: Pursuant to Section 33413(d),only Section 33413(a)replacement requirements apply to dwelling units destroyed or removed after 1995. The Agency can choose to apply all or part of Section 33413 to a project area plan adopted before 1976. If the agency has elected to apply all or part of Section 33413,provide the date of the resohntion and the applicable Section 33413 requirements addressed in the scope of the resolution. Date: / / Resolution Scope(applicable Section 33413 requirements): mo day yr Post-1975 proiect areas and aeosmwhic areas added by amendment after 1975 to me-1976 Project areas: Both replacement and inchnsionary or production requirements of Section 33413 apply. NOTE: Amounts to report on HCD-A lines 3a(1),3b-3f,and 3i.can be taken from what is reported to the State Controller's Office(SCO)on the Statement of Income and Expenditures as part of the Redevelopment Agency's Financial Transactions Report,except for the reclassi4*9 of Transfers-In from Internal Funds and the,reporting of Other Sources as discussed below: Transfers-In from other internal funds: Report the amount of transferred funds on applicable HCD-A, lines 3a-j. For example,report the amount transferred from the Debt Service Fund to the Housing Fund for the deposit of the required set-aside percentage/amount by reporting gross tax increment on HCD-A,Line 3a(1) and report the Housing Fund's share of expenditures for debt service on HCD-C,Line 4c. Do not report "net"funds transferred from the Debt Service Fund on HCD-A.Line 3a(7)when reporting debt service expenditures on HCD-C.Line 4c, Other Sources: Non-GAAP(Generally Acceptable Accounting Principles)revenues such as from land sales for those agencies using the Land Held for Resale method to record land sales should be reported on HCD-A Line 3d. Califomia Re&nelopment:agencies—Fiscal Year 2009-2010 IICD-A Sch A(Revised:9-28-2010) Page 1 of 8 71 Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Housing fund receipts for the repayment of loan principal should be included on EiCD-A Line 3h(1)or on Line 3h(2)if the repayment of loan principal is a result of the FY2009-10 and/or FY2010-11 SERAF. 1 Califomia Redevelopment Agencies—Fiscal Yes 2009-2010 HCD-A Sch A(Revised:9-28-10) Page 2 of 8 �r- Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Project Area Housing Fund Revenues and Other Sources 3. Report all revenues and other sources of funds from this project area which accrued to the Housing Fund over the reporting year. Any income related to agency-assisted housing located outside the project area(s)should be reported as"Other Revenue"on Line 3j.(of this Schedule A),if this project area is named as beneficiary in the authorizing resolution. Any other revenue sources not reported on lines 3a.-M.,should be reported on Line 3j. Enter on Lin:3a(1)the full 1001/a of gross Tax Increment allocated Prior to applicable Pass through of finds and deductions for fees(refer to Sections 33401,33446,&33676). Compute the required minimum percentage(%)of gross Tax Increment and enter the amount on Lin:3a(2XA)or 3a(2)(B). Report SERAF on Lin;3a(3). Next,on Lin:3a(4),report the amount of Tax Increment set-aside allotted before any exemption and/or deferral. To determine the amount of Tax Increment deposited to the Housing Fund[Line 3a(7)],subtract allowable amounts exempted[Line 3a(5)]and/or deferred[Line 3a(6)] from the net amount allocated to the Housing Fund Kim 3a(4)]. a. Tax Increment: _ . (1) 1000/o of Gross Allocation: $7,894,018 - (2) Calculate only 1 set-aside amount: either A or B below. (A) 20%required by 33334.2 (Line 3a(1)x 2(r ): $1,578,804 (B) 30%required by 33333.1(Xg)(Line 3a(l)x 3(P/o): $ (Senate Bill 211,Chapter 741,Statutes of 2001) (3) Supplemental Education Revenue Augmentation Fund(SERAF): .(A)SUSPENSION:Only allowed in FY2009-10. ($ ) H&SC Section 33334.2(k)allows agencies to suspend all or part of the set-aside allocation on lip 3a(2)to pay FY2009-10 SERAF(complete Sch A,page 3,#4 and Sch-C,page 9) (B) SERAF REPAYMENT of FY2009-10 SUSPENDED amount $ comp a page ,page 3,ge and page . -- (4) Net amount of tax increment allocated to Housing Fund $1379,178 If the net amount of set aside allocated is less than the required. mnumum,identify the project area(s)making up any difference and explain on page 4,box#5[per 33334.3(i)]. (5) Amount Exempted(H&SC Section 33334.2) ($ ) [if there is an amount exempted,also complete page 3,#5a(1)-(2)1: (6) Amount Deferred(H&SC Section 33334.6) ($ ) [if there is an amount deferred,also complete pages 4-5,#5b(1)-(4)1: (7) Total deposit to the Housing Fund[Net result of Line 3a(4)thro 3affil: - $ b. Interest Income: $ 30,023 c. Rental/Lease Income(combine amounts separately reported to the SCO): $ d. Sale of Real Estate: $ e. Grants(combine amoums separately reported to the SCO): $ f. Bond Administrative Fees: $ g. Deferral Repayments[also complete,page 4, Line,5b(3)]: $' h. (1)Loan Repayments(other than SERAF): $ (2)SERAF LOAN Repayments(also complete Sch-C,page 3,8e and page 9) $ i. Debt Proceeds: $ j. Other Revenue(s)[Explain and identify amounts)]: k. Total Project Area Receipts Deposited to Housing Fund(add lines 3a(7)and 3b-3j.): $ 1.609:01 Califomia Redevelopment Agencies-Fiscal Year 2009-2010 HCD-A Soh A(Revised:9-28-10) Page 3 of 8 Agency Name: CRA of City of Grand Tcrrac a Project Area Name:Grand Terrace Comm.Redevelopment Project Area Supplemental Educational Revenue Aw>anentation Fund(SERAF)Suspension of Property Tax Revenue Deposit 4. Check box below and provide information only if the agency,between July 1,2009 and June 30,2010,exercised suspension option(Sch A,page 2,Line 3a(3)(A)and did not make the required minimum allocation and deposit of tax increment to the Housing Fund for the purpose of using suspension funds to meet the Fiscal Year 2009-10 SERAF obligation Note,pursuant to Health and Safety Section 33334.2(k),repayment is required before June 30,2015. ❑ SERAF[H&SC Section 33334.2(k)]. In FY2009-10 the agency exercised option to suspend allocating and depositing a portion of the minimum 20%of gross property tax increment Institictions. Please include amounts for ALL fiscal years between FY2009-10 and FY2014-15 (in addition to the current reporting fiscal year)to record agency compliance with repayment requirements as referenced in H&SC Section 33334.2(kxl x2x3). Alpo mpat the cunwhdve total suspended and repaid awowra OJvm all p ojed mans)in&keduk`C,pow 9,bax 23. Fiscal Years Applicable to Col 1 Col 2 Col 3 • SERAF Suspension and Remaining SERAF Repayment Deposit Identify SERAF Identify arty SERAF Balance Amount SmgmdW Repayment(Deposit) (prior year Col FY 2009-2010 Made in Fiscal Year �Cent year Repayment Col 2) 2009-2010 $ S 2010—2011 S S 2011-2012 S S 2012-2013 S S 2013-2014 $ S �r~l 2014-2015 Exemption(s)and Deferral(s) 5. &(1)If an exemption was claimed on Page 2,Line 3a(5)to deposit I=than the required amount,complete the following information: Check Mly one of the Health and Safety Code Sections below V1V W:An Anmyal Finding is required to be submitted to HCD) ❑ Section 33334.2(axl): No need in community to increasehinprove supply of lower or moderate income housing. ❑ Section 33334.2(a)(2): Less than the minimum set-aside%(20%or 30%)is sufficient to meet the need. ❑ Section 33334.2(a)(3): Community is making substantial effort equivalent in value to minimum set-aside%(20%or 30%) and has specific contractual obligations incurred before May 1, 1991 requiring continued use of this funding. Note: Pursuant to Section 33334.2(ax3)(C),this exemption expired on June 30,1993 but contracts entered into prior to May 1,1991 may not be subject to the exemption sunset. ❑ Other: Specify code section and neasoan(s): (2)For any exemption claimed on Page 2,Line 3a(5)and Line 5a(1)above,identify: Date that initial 0")finding was adopted: 1 1 Resolution# Date sent to HCD: mo day Yr 1 mo day )z Adoption date of neppEWN year finding / / Resolution# Date sent to HCD: / / mo day yr mo day yT Califomia Redevelopment agencies-Fiscal Year 2009-2010 HCD-A ch A(Ra%ised:9-28-10) Page 4 of Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Exemptions and Deferrals continued BOX#5 Identification of Project area and explanation if set-aside deposit is LESS THAN the required minimunn Refer to Sch A,page 2,Line 3(a)(4): Deferral(s) 5. b.(1) If a Deferral was claimed on Page 2,Line 3a(6)to deposit less than the required amount,complete the following Check only one of the Health and Safety Code Sections below _ p information: ❑ Section 33334.6(d): Applicable to project areas approved before 1986 in which the required resolution was sent to HCD before September 1986 regarding needing tax increment to meet existing obliptions. Existing obligations can include those incurred after 1985,if net proceeds were used to refinance pre-1986 listed obligations. Note: The deferral previously authorized by Section 33334.6(e)expired It was only allowable In each fiscal year prior to July 1,1996 with certain restrictions + "` ❑ Other Health&Safety Code Section here: L � (2) For any deferral claimed on page 2,Line•3a(6)and Line 5b(1)above,identify: Date that initial f 1 t)fig"was adopted: / / Resolution# Date sent to HCD: mo day yr mo day yr Adoption date of EaVEdrg year finding: / / Resolution# Date sent to HCD: 1. / mo day yr mo day yr (3) A deferred set-aside per to Section 33334.6(d)constitutes indebtedness to the Housing Fund. Summarize the amount(s) of set-aside deferred and repayments made during the reporting year and the cumulative amount deferred as of end of FY: REPAYMENTS Amount Deferred REPAYMENTS Cumulative Amount This Reps FY of Deferrals ur Deferred(Net of Any Fiscal Year Repot irm FY Arnount(s)Repaid•) (1)Last Reporting FY $ (2)This Reporting FY $ S $• • •The cumulative amount of deferred set-aside should also be shown on HCD-C,page 3,Line 8a. If the prior FY cumulative deferral shown above differs from what was reported on the last HCD report(HCD-A and HCD-C),indicate the amount of difference and the reason(use box above if needed): Difference: $ Reason(s): Califomia Redevelopment agencies-Fiscal Year 2009-2010 HCD-A Sch A(Revised:9-28-10) Page 5 of 8 7� Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Deferral(s)continued (4)Section 33334.6(g)requires any agency which defers set-asides to adopt a plan to eliminate the deficit in subsequent years. If this agency has deferred set-asides,has it adopted such a plan? Yes ❑ No❑ If yes,by what date is the deficit to be eliminated? mo day yr If yes,when was the original plan adopted for the claimed defenral7 / / mo day yr . Identify Resolution# Date Resolution sent to HCD / / mo day yr When was the last amended plan adopted for the claimed deferral? / / mo day yr Identify Resolution# Date Resolution sent to HCD / / mo day yr Actual Proiect Area Households Displaced and Units and Bedrooms Lost Over Reporting Year. 6. a. Redevelopment Project Activity. Pursuant to Sections 33080.4(axl)and(a)(3),report by income category the number of elderly and nonelderly households permanently displaced and the number of units and bedrooms removed or destroyed,over the EMgding Yew,(refer to Section 33413 for unit and bedroom replacement requirements} Number of Households/Unib/Bedrooms I-otal Households Permanently Displaced—Elderly Households Permanently Displaced-Non Elderly Households Permanently Displaced.—Total Units Lost(Removed or Destroyed)and Required to be Replaced Bedrooms Lost(Removed or Destroyed)and Required in be Replaced Above Moderate Units Lost That Agency is Not Required to Replace Above Moderate Bedrooms Lost That Agency is Not Required to Replace E4 - - d b. Other Activity. Pursuant to Sections 33080.4(ax 1)and(ax3)based on activities other than the destruction or removal of dwelling wits and bedrooms rrported.on Line 6a report by income category the number of elderly and nonelderly households permanently displaced over the neportingyear: Number of Households Other Activity VL L M AM Total Households Permanently Displaced—Elderly Households Permanently Displaced-Non Elderly Households Permanently Displaced—Total c. As required in Section 33413.5,identify,over the reporting year.each replacement housing plan required to be adopted before the permanent displacement,destruction,and/or removal of dwelling units and bedrooms impacting the households reported on lines 6a.and 6b. Date / / Name of Agent'Custodian mo day yr Date / / Name of Agency Custodian mo day yr Please attach a separate sheet of paper listing any additional housing plans,adopted. California Redevelopment Agencies-Fiscal Year 2009-2010 HCD-A Sch A(Revised:9-28-10) Page 6 of 8 74 Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Estimated Project Area Households to be Permanently DiSDIRced Over Current Fiscal Year. 7. a. As required in Section 33080.4(a)(2)for a redevelopment project of the agency,estimate,over the current fiscal year,the number of elderly and nonelderiy households,by income category,expected to be permanently displaced. (Note:actual displacements will be reported for the next reporting year on Line 6). Number of Households Project Activity VL L M AM I Total Households Permanently Displaced-Elderly Households Permanently Displaced-Non Elderly Households Permanently Displaced-Total b. As required in Section 33413.5,for the current fiscal veer.identify each replacement housing plan required to be adopted before the permanent displacement,destruction,and/or removal of dwelling units and bedrooms impacting the households reported in 7a. Date / / Name of Agency Custodian mo day yr Date / / Name of Agency Custodian mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. Units Developed Inside the Proiect Area to Fulfill Requirements of Other Pruiect Area(s) Q construct new or substantially rehabilitate dwelling units,provided the agency conducts a public baring and fmds,based on substantial evidence,that the aggregation of dwelling units in one or more project areas will not cause or exacerbate racial,ethnic,or economic segregation. Were any dwelling units in this project area developed to partially or completely satisfy another project area's requirement to construct new or substantially rehabilitate dwelling traits? ❑No. ❑Yes. Date initial funding was adopted? / / Resolution N Date sent to HCD: rilo day yr mo day yr Number of Dwe Units Name of Other Project Area(s) VL L M Total California Redevc1opment Agencies-Fisc:al fear 2009-2010 HCD-A Sch A(Revised:9-28-10) Page 7 of 8 77 Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Sales of Owner-Occupied Units Inside the Project Area Prior to the Expiration of Land Use Controls 9. Section 33413(cx2)(A)specifies that pursuant to an adopted program,which includes but is not limited to an equity sharing program, agencies may permit the sale of owner-occupied units prior to the expiration of the period of the land use controls established by the agency. Agencies must deposit sale proceeds into the Low and Moderate Income Housing Fund and within three(3)years from the date the unit was sold,expend firds to make another unit equal in alTordability,at the same income level,to the unit sold. a. Sales. Did the agency permit the sale of any owner-occupied units during the reporting year? [:]No []Yes $ �-- Total Proceeds From Sales Over-Reporting Year Number of Units SALES VL L M Total Units Sold Over Reporting Year b. Equal Units. Were reporting Year fiords spent to make units equal in affordability to units sold over the last three reporting years? ❑No QYes $ <— Total LMHW Spent On Equal Units Over Number of Units Reporting Year SALES, VL L M Total Units Made Equal This Reporting Yr to Units Sold Over This Reporting Yr Units Made Equal This Reporting Yr to Units Sold One Reporting Yr Ago Units Made Equal This Reporting Yr to Units Sold Two Reporting Yrs Ago Units Made Equal This Reporting Yr to Units Sold Three Reporting Yrs Ago Affordable Units to be Constructed Inside the Protect Area Within 3 go years 10. Pursuant to Section 33080.4(a)(10),report the number of very low,low,and moderate income units to be financed by any federal, state,local;or private source in order for construction to be completed within two years from the date of the agreement or contract executed over the reporting . Identify the project and/or contractor,date of the executed agreement or contract,and estimated completion date. Specify the amount reported as an encumbrance on HCD-C,Line 6a.and/or any applicable amount designated on -� HCD-C,Lure 7a.such as for capital outlay or budgeted funds intended to be encumbered for project use within two years from the reporting year's agreement or contract date. DO NOT REPORT ANY UNITS ON THIS SCHEDULE A THAT ARE REPORTED ON OTHER HCD-As,B.OR Ds Col A Col B Col C Col D Col E Name of Agreement Estimated Sch C Amount Sch C Amount Project and/or Execution Completion Data Encumbered Designated Contractor Date (wfin 2 ym of Col B ne 6a ne 7a VL L M Total $ i $ ti $ = Please attach a separate sheet of paper to list additional information. Califomia Redevelopment Agencies-Fiscal Year 2009-2010 1ICD-A Sch A(Revised:9-28-10) Page 8 of 8 7 E' SCHEDULE HCD-C Agency-wide Activity for Fiscal Year that Ended 6/30/2010 Agency Name:CRA of the City of Grand Terrace Project Area Name:Grand Terrace Comm. Redevelopment Proiect Area Preparer's Name,Title:Jane Carlson,.Analyst,RSG Inc. Preparer's E-Mail Address:jcarlsonAwebrsg.com Preparer's Telephone No:714-316-2123 Preparer's Facsimile No:714-541-1175 Low&Moderate Income Housins Funds Report on the"status and use of the agency's Low and Moderate Income Housing Fund." Most information reported here should be based on information reported to the State Controller. 1. Beginning Balance(Use"Net Resources Available"from last fiscal year report to HCD) $1,518,061 a. If Beeinniniz Balance requires adiustment(s)describe and provide dollar amount(positive/negative) making up total adjustment: Use<$>for negative amounts or amounts to be subtracted. Land Held for Resale $640,166 Loans Receivable $713,000 Long Term Advances $300,205 b. Adjusted Beginning Balance[Beginning Balance plus+or minus<->Total Adjustment(s)] $112,711 2. Project Area(s) Receipts and Housing Fund Revenues a. Total Project Area(s)Receipts.Total Summed amount of HCD-Schedule A(s)(from Line 3k) $1,609,201 b. Housing Fund Resources not reported on HCD Schedule-A(s) Describe and Provide Dollar Amount(s)(Positive/Negative)Making Up Total Housing Fund Resources c. Total Housing Fund Resources $ 3• Total Resources (Line lb.+Line 2a+Line 2c.) $3,239,973 NOTES: Many amounts to report as Expenditures and Other Uses(beginning on the next page)should be taken from amounts reported to the State Controller's Office(SCO). Review the SCO's Redevelopment Agencies Financial Transactions Report. Housing Fund"transfers-out"to other internal Agency funds: Report the specific use of all transferred funds on applicable lines 4a.-k of Schedule C. For example,transfers from the Housing Fund to the Debt Service Fund for the repayment of pnncipal and interest of debt proceeds deposited to the Housing Fund should be reported on the applicable item comprising HCD-C Line 4c,providing tax increment(gross and deposit amounts)were reported on Sch-As. External transfers out of the Agency should be reported on HCD-C Line 4j(e.g.:transfer of excess surplus to the County Housing Authority). Other Uses: Non-GAAP(Generally Accepted Accounting Principles)recording of expenditures such as land purchases for agencies using the Land Held for Resale method to record land purchases should be reported on HCD-C.Line 4a(1). Funds spent resulting in loans to the Housing Fund should be included in HCD-C lines 4b.,4f.,4g.,4h.,and 4i as appropriate. The statutory cite pertaining to Community Redevelopment Law(CRL)is provided for preparers to review to determine the appropriateness of Low and Moderate Income Housing Fund(LMIHF)expenditures and other uses. HCD does not represent that line items identifying any expenditures and other uses are allowable. CRL is accessible on the Internet (website: http.;/www.["info.ca.eov/(California Law)]beginning with Section 33000 of the Health and Safety Code. Califomia Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 1 of 11 7Q ng�u�y raw. 4. Expenditures,Loans,and Other Uses a. Acquisition of Property&Building Sites[33334.2(e)(1)l&Housing[33334.2(e)(6)1: (1) Land Purchases(Investment—Land Held for Resale) * $ (2) Housing Assets(Fixed Asset)* $ (3) Acquisition Expense $ (4) Operation of Acquired Property $ (5) Relocation Costs $ (6) Relocation Payments $ (7) Site Clearance Costs $ (8) Disposal Costs S (9). Other[Explain and identify amount(s)]: Project Improvement Costs $333,868 * Reported to SCO as part of Assets and Other Debts (10) Subtotal Property/Building Sites/Housing Acquisition(Sum of Lines 1 —9) $ b. Subsidies from Low and Moderate Income Housing,Fund(LMIHF): (1) 1."Time Homebuyer Down Payment Assistance $ (2) Rental Subsidies $ (3) Purchase of Affordability Covenants[33413(b)2(B)] $ (4) Other[Explain and identify amount(s)]: (5) Subtotal Subsidies from LM1HF(Sum of Lines 1 —4) $ c. Debt Service[33334.2(e)(9)1. If paid from LMIHF,report LMIHF's share of debt service. If paid from Debt Service Fund,ensure"gross"tax increment is reported on HCD-A(s)Line 3a(1). (1) Debt Principal Payments (a) Tax Allocation,Bonds&Notes $258,888 (b) Revenue Bonds&Certificates of Participation $ (c), City/County Advances&Loans $122,510 (d) U.S. State&Other Long—Term Debt $ (2) Interest Expense $ (3) Debt Issuance Costs $ (4) Other[Explain and identify amount(s)]: Transfer to Capital Projects Fund $350,000 $ $350,000 (5) Subtotal Debt Service(Sum of Lines 1 —4) $731,198 d. Planning and Administration Costs[33334.3(e)(1)I: (1) Administration Costs $865,489 (2) Professional Services(non project specific) $ - ( (3) Planning/Survey/Design(non project specific l $ (4) Indirect Nonprofit Costs[33334.3(e)(1)(B)] $ (5) Other[Explain and identify amount(s)]: $ (6) Subtotal Planning and Administration(Sum of Lines 1—5) $865,489 Cali fomia Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 2 of 11 Rr Ngtaiuy 1Va111u. - 4. Expenditures,Loans,and Other Uses(continued) e. On/Off-Site Improvements[33334.2(e)(2)] Complete item 13 $ f. Housing Construction[33334.2(e)(5)] $ g. Housing Rehabilitation[33334.2(e)(7)] $ h. Maintain Supply of Mobilehome Parks[33334.2(e)(10)] $ i. Preservation of At-Risk Units[33334.2(e)(11)] $ j. Transfers Out of Agency (1) For Transit village Development Plan(33334.19) $ (2) Excess Surplus[33334.12(a)(1)(A)] $ (3) Other(specify code section authorizing transfer and amount) A. Section $ B. Section $ Other Transfers Subtotal $ 1 (4)Subtotal Transfers Out of Agency(Sum of j(1)through j(3)) $ k. SERAF loan[33334.2(k)] Also complete Line 8e(below)and Box 23,pg 9. $ L Other Expenditures,Loans,and Uses[Explain and identify amount(s)]: Subtotal Other Expenditures,Loans,and Uses $ m• Total Expenditures,Loans,and Other Uses(Sum of lines 4a.-I.) - $1,930,555 5• Net Resources Available[End of Reporting Fiscal Year] [Page 1,Line 3,Total Resources minus Total Expenditures,Loans,and Other Uses on Line 4.1.1 $1,309,418 6• Encumbrances and Unencumbered Balance a. Encumbrances. Amount of Line 5 reserved for future payment of legal contract(s)or — - —agreement(s).Se�H&SG Seetie_33331 1-(g);�dgfrnitigm $ --- Refer to item 10 on Sch-A(s)and item 4 on Sch-B. b. Unencumbered Balance(Line 5 minus Line 6a). Also enter on Page 4,Line 1 la. $ 1,221,107 7• Designated/Undesignated Amount of Available Funds a. Designated From Line 6b-Budgeted/planned to use near-term t� Refer to item 10 on Sch-A(s)and item 4 on Sch-B $ b. Undesignated From Line 6b-Portion not wet budgeted/planned to use $ 8. Other Housing Fund Assets(non recurrent receivables)not included as part of Line 5 a. Indebtedness from Deferrals of Tax Increment(33334.6) [refer to Sch-A(s),Line 5c(2)]. $ b. Value of Land Purchased with Housing Funds and Held for Development of Affordable Housing. Complete Sch-C item 14. $640,166 c. Loans Receivable for Housing Activities $779,230 d. Residual Receipt Loans(periodic/fluctuating payments) $ e. SERAF Total Receivable[Sec 33334.2(k)] (Also report in Sch,C,Box 23,pg 9.) $ f. ERAF Loans Receivable(all years)(33681) $ g. Other Assets[Explain and identify amount(s)]: Long term advances $300,205 Misc Interest $1,339 h Total Other Housing Fund Assets(Sum of lines 8a.-g.) $1,720,940 9• TOTAL FUND EQUITY .[Line 5(Net Resources Available)+8g(Total Other Housing Fund Assets)] $3,030,358 Compare Line 9 to the below amount reported to the SCO(Balance Sheet of Redevelopment Agencies Financial-Transactions Report. [Explain differences and identify amount(s)]: ENTER LOW-MOD FUND TOTAL EQUITIES(BALANCE SHEET)REPORTED TO SCO S3,030,358 California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C crh C IRrvked•9.28-10) Page 3 of 11 49 r�gcu�y i�mu�. Excess Surplus information Pursuant to Section 33080.7 and Section 33334.12(g)(1),report on Excess Surplus that is required to be detemtined on the first day of a fiscal year. Excess Surplus exists when the Adjusted Balance exceeds the greater of:(1)$1,000,000 or(2)the aggregate amount of tax increment deposited to the Housing Fund during the prior four fiscal years. Section 33334.12(g)(3)(A)and(B) provide that the'Unencumbered Balance can be adjusted for: (1)any remaining revenue generated in the reporting year from unspent debt proceeds and(2)if the land was disposed of during the reporting year to develop affordable housing,the difference between the fair market value of land and the value received. The Unencumbered Balance is calculated by subtracting encumbrances from Net Resources Available. "Encumbrances"are funds reserved and committed pursuant to a legally enforceable contract or agreement for expenditure for authorized redevelopment housing activities[Section 33334.12(g)(2)]. For Excess Surplus calculation purposes,carry over the prior year's HCD Schedule C Adjusted Balance as the Adjusted Balance on the first day of the reporting fiscal year. Determine which is larger:(1)$1 million or(2)the total of tax increment deposited over the prior four years. Subtract the largest amount from the Adjusted Balance and,if positive,report the amount as Excess Surplus. 10. Excess Surplus: Complete Columns 2,3,4,&5 to calculate Excess Surplus for the reporting ear. Columns 6 and 7_track prior ears'Excess Surplus. Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Sum of Tax Current Current Amount 4 Prior and Total Tax Increment Reporting Year Reporting Year Expended/Encumbered Remaining Excess Current Increment Deposits Over Is`Day Is`Day Against FY Balance of Surplus for Each Reporting Deposits to Prior Four Adjusted Excess Surplus Excess Surplus as of Fiscal Year as of Years HousingFund FYs Balance Balances End of Revortine Year End of Reyortine Year 4 Rvt Yrs Ago FY 05/06 $ $ $ $ RLffn — Y 06/07 $ $ $ $ 2 Mt Yrs Ago FY 07/06 $ $ $ $ 1 RLt Yr Ago FY 08/09 $ $ $ $ CURRENT Sum of Column 2 Last Year's Sch C Col 4 minus:larger Reportine Adiusted Balance of Col 3 or$1 mm Year (report positive$) FY 09/10 $ $ $ $ $ 11. Reportine Year Ending Unencumbered Balance and Adjusted Balance: a. Unencumbered Balance(End of Year)[Page 3,Line 6b] $1,221,107 b. If eligible,adjust the Unencumbered Balance for: (1) Debt Proceeds[33334.12(g)(3)(B)]: Identify unspent debt proceeds and related income remaining,at end of reporting year $ (2)Land Conveyance Losses[(33334.12(g)(3)(A))]: Identify reporting year losses from sales/grants/leases of land acquired with low-mod funds, if 49"/6 or more of new or rehabilitated units will be affordable to lower-income households. $ 12.Adjusted Balance(next year's determination of Excess Surplus)[Line 1 la minus sum of 1 lb(1)& 1 lb(2)] $1,221,107 Note:Do not enter Adjusted Balance in Col 4. It is to be reported as next year's 1st day amount to determine Excess Surplus a. If there is remaining Excess Surplus from what was determined on the first day of the reporting year,describe the agency's plan(as specified in Section 33334.10)for transferring,encumbering,or expending excess surplus: b. If the plan described in 12a.was adopted,enter the plan adoption date: 1 / mo day yr California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 4 of 11 Agrucy ivauic. Miscellaneous Uses of Funds 13. If an amount is reported in 4e.,pursuant to Section 33080.4(a)(6),report the total number of very low-,low-,and moderate- income households that directly benefited from expenditures for onite/offsite improvements which resulted in either new construction,rehabilitation,or the elimination of health and safety hazards. (Note: If Line 4e of this schedule does not show expenditures for improvements,no units should be reported here.) Households Benefiting Income Households Households from Elimination of Level Constructed Rehabilitated Health and Safety Hazard Duration of Deed Restriction Very Low �i Low Moderate 14. If the agency is holding land for future housing development(refer-to Line 8b),summarize the acreage(round to tenths,do not report square footage),zoning,date of purchase,and the anticipated start date for the housing development. No.of Purchase Estimated Date Site Name/Location* Acres Zoning Date Available Comments -- .1hoc Canal St ___.--_—_^_. ...66-- 133_ 12/2009 wn Ton_un_it con ominium l� Please attach a separate sheet of paper listing any additional sites not reported above. 15. Section 33334.13 requires agencies which have used the Housing Fund to•assist mortgagors in a homeownership mortgage revenue bond program,or home financing program described in that Section,to provide the following information: a. Has your agency used the authority related to definitions of income or family size adjustment factors provided in Section 33334.13(a)? Yes❑ No ❑ Not Applicable b. Has the agency complied with requirements in Section 33334.13(b)related to assistance for very low-income households equal to twice that provided for above moderate-income households? Yes❑ No ❑ Not Applicable California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 5 of 11 o� J%gency ivaute. 16. Did the Agency use non-LMIHF funds as matching funds for the Federal HOME or HOPE program during the reporting period? YES ❑ NO If yes,please indicate the amount of non-LMIHF funds that were used for either HOME or HOPE program support. HOME S HOPE S 17. Pursuant to Section 33080.4(a)(I 1),the agency shall maintain adequate records to identify the date and amount of all LMIHF deposits and withdrawals during the reporting period. To satisfy this requirement,the Agency should keep and make available upon request any and all deposit and withdrawal information. DO NOT SUBMIT ANY DOCUMENTSIRECORDS. Has your agency made any deposits to or withdrawals from:the LMIHF? Yes ® No ❑ If yes,identify the document(s)describing the agency's deposits and withdrawals by listing for each document,the following(attach additional pages of similar information below as necessary): Name of document(e.g.ledger,journal,etc.): Trial Balance Name of Agency Custodian(person): Bernie Simon Custodian's telephone number: (909)430-2216 Place where record can be accessed: Finance Department.City of Grand Terrace Name of document(e.g.ledger,journal,etc.): Name of Agency Custodian(person): Custodian's telephone number: Place where record can be accessed: 18. Use of Other(non Low-Mod Funds)Redevelopment Funds for Housine Please briefly describe the use of any non-LMIHF redevelopment funds(i.e.,contributions from the other 80%of tax increment revenue or other non Low-Mod funds)to construct,improve,assist,or preserve housing in the community. N/A 19. Sueeestions/Resource Needs Please provide suggestions to simplify and improve future agency reporting and identify any training,information,and/or other resources,etc.that would help your agency to more quickly and effectively use its housing or other funds to increase, improve,and preserve affordable housing? None 20. Annual Monitorine Reports of Previously Completed Affordable Housine Proiects/Proerams(H&SC 33418) Were all Annual Monitoring Reports received for all prior years'affordable housing projects/programs? Yes ® No ❑ California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch(fRevised:9-29-10) Page 6 of 11 4i 21. Excess Suralus Expenditure Plan(H&SC 33334.10(a) California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 7 of 11 Q� agency[Name: 22. Footnote area to provide additional information. California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C c,h r IR"ked.9-29-10) Page 8 of 11 Qi Agency name: 23. Accounting for SERAF REPAYMENTS -AGENCY WIDE,ALL YEARS Instructions: •For FY2009-10: Add amounts suspended&loaned then enter total in Col 4. •For FY2010-11:Add the amount loaned(for SERAF payment only)to the remaining balance in Col 4 from FY2009-10.,then subtract any amount repaid,and enter the net total in Col 4. • For all other fiscal years(up to June 30,2016):subtract the amount of SERAF repaid during each fiscal year from the prior year's remaining balance in Col 4. Continue repaying the Low Mod Fund until the entire amount of any SERAF suspended and/or loaned has been repaid in full,pursuant to the repayment timeframes listed in the Health and Safety Code Sections cited below. Col 1 Cot Cot Col 4 Specify Amount Amount Loaned for Amount SERAF SERAF Balance Suspended SERAF payment Fiscal Year of REPAID Remaining ONLY in In FY2009-10 w any FY 2009-10 or in each Reporting repayment Fiscal Year In FY2010-11 2009-2010 2010—2011 2011 —2012 2012—2013 2013—2014 r' J 2014-2015 2015—2016 Suspending Funds to pay SERAF in FY2009-10: - H&SC Section 33334.2(k)(1)(2)(3) Pursuant to the H&SC Section 33334.2(k)(1)(2)(3)agencies are authorized to make SERAF payments by suspending tax increment revenue from being deposited into the Low Mod Funds. Any suspension of funds is limited to Fiscal Year 2009-10 and must be paid back in full to the Low Mod-Fund no later than June 30,2015. Borrowing Funds to pay SERAF in FY2009-10: - H&SC Section 33690(c)(1)(2) Pursuant to H&SC Section 33690(c)(1)(2),For Fiscal Year 2009-10,agencies can pay the SERAF by borrowing funds from the Low Mod Housing Fund,but must pay back all of the borrowed funds no later than June 30,2015. Borrowing Funds to pay SERAF in FY2010-11 : - H&SC Section 33690.5(c)(1)(2) Pursuant to H&SC Section 33690.5(c)(1)(2),For Fiscal Year 2010-11,agencies can pay the SERAF by borrowing funds from the Low Mod Housing Fund,but must pay back all of the borrowed funds no later than June 30,2016. Penalties exist for not repaying SERAF to Low Mod Fund: Refer to H&SC Sections 33020.5,33331.5,33334.2,33688, 33690,33690.5,.33691 and 33692. California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Q..6 r 1p-A-A.o-')x-i m Page 9 of 11 o-7 Agency Name: 24. Proiect Achievement and HCD Director's Award fdr Housine Excellence Project achievement information is optional but can serve important purposes: Agencies'achievements can inform others of successful redevelopment projects and provide instructive information for additional successful projects. Achievements may be included in HCD's Annual Report of Housing Activities of California Redevelopment Agencies to assist other local agencies in developing effective and efficient programs to address local housing needs. In addition,HCD may select various projects to receive the Director's Award for Housing Excellence. Projects may be selected based on criteria such as local affordable housing need(s)met,resources utilized,barriers overcome,and project innovation/complexity,etc. Project achievement information should only be submitted for one affordable residential project that was completed within the reporting year as evidenced by a Certificate of Occupancy. The project must not have been previously reported as an achievement. To publish agencies' achievements in a standard format, please complete information for each underlined category below addressing suggested topics in a narrative formal that does not exceed two pages (see example, next page). In addition to submitting information with other HCD forms to the State Controller,please submit achievement information on a 3.5 inch diskette and identify the software type and version. For convenience,the diskette can be separately mailed to: HCD Policy Division, 1800 3rd Street, Sacramento, CA 95811 or data can be attached to an email and sent to appropriate staff by inquiring of appropriate stairs name and email address by calling 916.445-4728. AGENCY INFORMATION • Project Type(Choose one of the categories below and one kind of assistance representing the prima project type): New/Additional Units(Previously Uno_ccu ied/Uninhabitable : Existing Units(Previously Occupied) - New Construction to own - Rehabilitation ofOwner-Occupier--- - New Construction to rent - Rehabilitation of Tenant-Occupied - Rehabilitation to own - Acquisition and Rehabilitation to Own - Rehabilitation to rent - Acquisition and Rehabilitation to Rent - Adaptive Re-use - Mobilehomes/Manufactured Homes - Mixed Use Infill - Payment Assistance for Owner or Renter - Mobilehomes/Manufactured Homes - Transitional Housing - Mortgage Assistance - Other(describe) - Transitional Housing - Other(describe) • Agency Name: • Agency Contact and Telephone Number for the Project: DESCRIPTION • Project Name • Clientele served[owner,renter,income group,special need(e.g.large family or disabled),etc.] • Number and type of units and location,density,and size of project relative to other projects,etc. • Degree of affordability/assistance rendered to families by project,etc. • Uniqueness(land use,design features,additional services/amenities provided,funding sources/collaboration,before/after project conversion such as re-use,mixed use,etc.) • Cost(acquisition,clean-up,infrastructure,conversion,development,etc.) HISTORY • Timeframe from planning to opening • Barriers/resistance(legal/financial/community,etc.)that were overcome • Problems and creative solutions found • Lessons learned and/or recommendations for undertaking a similar project AGENCY ROLE AND ACHIEVEMENT • Degree of involvement with concept,design,approval,financing,construction,operation,and cost,etc. • Specific agency and/or community goals and objectives met,etc. California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C ,Z,k r(R— —1.Ms-im Page 10 of 11 ne SCHEDULE HCD-D1 GENERAL PROJECT/PROGRAM INFORMATION For each different Project/Program (area/name/agy or nonagy dev/rental or owner), complete a D1 and applicable D2-D7. Exam,oles: 1: 25 minor rehab (Nonagy Dev):Area4: 15 Owner;Area 2: 6 Rental,&Outside:4 Rental. Complete 3 D-1s, &Ds3-4-5. 2: 20 sub rehab(nonrestricted):Area 3:4 Agy Dev. Rentals; 16 Nonagy Dev. Rentals. Complete 2 D-1 s&2 D-5s. 3: 15 sub rehab (restricted):Area 4: 15 Nonagy Dev, Owner. Complete 1 D-1 & 1 D-3. 4: 10 new(Outside). 2 Agy Dev(restricted Rental), 8 Nonagy Dev(nonrestricted Owner) Complete 2 D-1s, 1 D-4, & 1 D-5. Name of Redevelopment Agency: Identify Project Area or specify"Outside": General Title of Housing Project/Program: Project/Program Address(optional): Market Rate Street: City: ZIP: Owner'Name(optional): Total Project/Program Units: Restricted Units: Unrestricted Units: # 1 # # 1 For Drolects/programs with no RDA assistance,do not complete any of below or any of HCD D2-D6. Only complete HCD-D7. Was this a federally assisted multi-family rental project[Gov't,Code Section 65863.1 0(a)(3)]? ❑YES ❑NO Number of units occupied by ineligible households(e.g. ineligible income/#of residents in unit)at FY end # Number of bedrooms occupied by ineligible persons(e.g. ineligible income/#of residents in unit)at FY end # Number of units restricted for special needs: (number must not exceed rota roTec ni s — -- Number of units restricted that are serving one or more Special Needs: # ❑ Check, if data not available (Note: A unit may serve multiple "Special Needs"below. Sum of all the below can exceed the "Number of Units"above) # DISABLED(Mental) # FARMWORKER(Permanent) # TRANSITIONAL HOUSING r \ # DISABLED(Physical) # FEMALE HEAD OF HOUSHOLD # ELDERLY '1 # FARMWORKER(Migrant) # LARGE FAMILY # EMERGENCY SHELTERS (4 or more Bedrooms) (allowable use only with"Other Housing Units Provided-Without LMIHF"Sch-D6 Affordability and/or Special Need Use Restriction Term enter day/month/yea using digits, e.g.07/01/2002 : Replacement HousingrUnits Inclusionary Housing Units Other HousingUnits Provided With LMIHF Without LMIHF Restriction Start Date Restriction End Date Perpetuity Funding Sources: Redevelopment Funds: $ Federal Funds $ State Funds: $ Other Local Funds: $ Private Funds: $ Owner's Equity: $ TCAC/Federal Award: $ TCAC/State Award: $ Total Development/Purchase Cost: $ Check all appropriate form(s) below that will be used to identify all of this Project's/Program's Units: ❑ Replacement Housing Units Inclusionary Units: Other Housing Units Provided: (Sch HCD-D2) ❑ Inside Project Area(Sch HCD-D3) El With LMIHF (Sch HCD-D5) ❑ Outside Project Area (Sch HCD-D4) ❑Without LMIHF (Sch HCD-D6) California Redevelopment Agencies-Fiscal Year 2009-2010 HCD-D 1 Q0 ® No A-gency Assistance(Sch HCD-D7) California Redevelopment Agencies-Fiscal Year 2009-2010 HCD-D1 Qi SCHEDULE HCD-A Inside Project Area Activity for Fiscal Year that Ended 6/30/2010 Agency Name:CRA of the City of Grand Terrace Project Area Name:Grand Terrace Community Redevelopment Project Area Preparer's Name,Title:Jane Carlson,Analyst,RSG Inc. Preparer's E-Mail Address:icarlson@,webrsR.com Preparer's Telephone No:714-316-2123 Preparer's Facsimile No:714-541-1175 GENERAL INFORMATION 1. Project Area Information a. 1.Year 1"plan for project area was adopted: 1981 2. Year that plan was last amended(if applicable): 2010 3. Was plan amended after 2001 to extend time limits per Senate Bill 211 (Chapter 741,Statutes of 2001)?Yes_No_ 4. Current expiration of plan: 7/ 151 2024 mo day yr b. If project area name has changed,give previous name(s)or number: c. Year(s)of any mergers of the project area: , Identify former project areas that merged: d. Year(s)project area plan was amended involving real property that either: (1) Added property to plan: 1981, , (2) Removed property from plan: 2. Affordable Housing Replacement and/or Inclusionary or Production Requirements(Section 33413). Pre-1976 project areas not subsequently amended after 1975: Pursuant to Section 33413(d),only Section 33413(a)replacement requirements apply to dwelling units destroyed or removed after 1995. The Agency can choose to apply all or part of Section 33413 to a project area plan adopted before 1976. If the agency has elected to apply all or part of Section 33413,provide the date of the resolution and the applicable Section 33413 requirements addressed in the scope of the resolution. Date: / / Resolution Scope(applicable Section 33413 requirements): mo day yr Post-1975 proiect areas and geographic areas added by amendment after 1975 to pre-1976 project areas: Both replacement and inclusionary or production requirements of Section 33413 apply. NOTE: Amounts to report on HCD-A lines 3a(1),3b-3f,and 3i.can be taken from what is reported to the State Controller's Office(SCO)on the Statement of Income and Expenditures as part of the Redevelopment Agency's Financial Transactions Report,except for the reclassifying of Transfers-In from Internal Funds and the reporting of Other Sources as discussed below: Transfers-In from other internal funds: Report the amount of transferred funds on applicable HCD-A, lines 3a-j. For example,report the amount transferred from the Debt Service Fund to the Housing Fund for the deposit of the required set-aside percentage/amount by reporting gross tax increment on HCD-A,Line 3a(1) and report the Housing Fund's share of expenditures for debt service on HCD-C,Line 4c. Do not report "net"funds transferred from the Debt Service Fund on HCD-A,Line 307)when reporting debt service expenditures on HCD-C,Line 4c. Other Sources: Non-GAAP(Generally Acceptable Accounting Principles)revenues such as from land sales for those agencies using the Land Held for Resale method to record land sales should be reported on HCD-A Line 3d. California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A Sch A(Revised:9-28-2010) Page I of 8 Al Agency Natne: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Housing fund receipts for the repayment of loan principal should be included on HCD-A Line 3h(1)or on Line 3h(2)if the repayment of loan principal is a result of the FY2009-10 and/or FY2010-11 SERAF. California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A Sch A(Revised:9-28-10) Page 2 of 8 Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Proiect Area Housing Fund Revenues and Other Sources 3. Report all revenues and other sources of funds from this project area which accrued to the Housing Fund over the reporting year. Any income related to agency-assisted housing located outside the project area(s)should be reported as"Other Revenue"on Line 3j.(of this Schedule A),if this project area is named as beneficiary in the authorizing resolution. Any other revenue sources not reported on lines 3a.-3i.,should be reported on Line 3j. Enter on Line 3a(1)the full 100%of gross Tax Increment allocated prior to applicable pass through of funds and deductions for fees(refer to Sections 33401,33446,&33676). Compute the required minimum percentage(%)of gross Tax Increment and enter the amount on Line 3a(2)(A)or 3a(2)(B). Report SERAF on Line 3a(3). Next,on Line 3a(4),report the amount of Tax Increment set-aside allotted before any exemption and/or deferral. To determine the amount of Tax Increment deposited to the Housing Fund[Line 3a(7)],subtract allowable amounts exempted[Line 3a(5)]and/or deferred[Line 3a(6)] from the net amount allocated to the Housing Fund[Line 3a(4)]. a. Tax Increment: (1) 100%of Gross Allocation: $7,894,018 (2) Calculate only 1 set-aside amount: either A or B below: (A) 20%required by 33334.2 (Line 3a(l)x 20%): $ 1,578,804 (B) 30%required by 33333.10(g)(Line 3a(l)x 30%): $ (Senate Bill 211,Chapter 741,Statutes of 2001) (3) Supplemental Education Revenue Augmentation Fund(SERAF): (A)SUSPENSION:Only allowed in FY2009-10. ($ ) H&SC Section 33334.2(k)allows agencies to suspend all or part of the set-aside allocation on line 3a(2)to pay FY2009-10 SERAF(complete Sch A,page 3,##4 and Sch-C,page 9) (B) SERAF REPAYMENT of FY2009-10 SUSPENDED amount $ (complete Sch A,page 3,#4 and Sch-C,page 3,8e and page 9). (4) Net amount of tax increment allocated to Housing Fund $ 1,579,178 If the net amount of set-aside allocated is less than the required minimum,identify the project area(s)making up any difference and explain on page 4,box#5[per 33334.3(i)]. (5) Amount Exempted(H&SC Section 33334.2) ($ ) [if there is an amount exempted,also complete page 3,#5a(1)-(2)]: (6) Amount Deferred(H&SC Section 33334.6) ($ ) [if there is an amount deferred,also complete pages 4-5,#5b(1)-(4)]: (7) Total deposit to the Housing Fund[Net result of Line 3a(4)through 3a(6)1: $ b. Interest Income: $ 30,023 c. Rental/Lease Income(combine amounts separately reported to the SCO): $ d. Sale of Real Estate: $ e. Grants(combine amounts separately reported to the SCO): $ f. Bond Administrative Fees: $ g. Deferral Repayments[also complete,page 4, Line 5b(3)]: $ h. (1)Loan Repayments(other than SERAF): $ (2)SERAF LOAN Repayments(also complete Sch-C,page 3,8e and page 9) $ i. Debt Proceeds: $ j. Other Revenue(s)[Explain and identify amount(s)]: k. Total Project Area Receipts Deposited to Housing Fund(add lines 3a(7)and 3b-3j) S 1,609,201 Califomia Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A Sch A(Revised:9-28-10) Page 3 of 8 Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Supplemental Educational Revenue Ausmentation Fund(SERAF)Suspension of Property Tax Revenue Deposit 4. Check box below and provide information only if the agency,between July 1,2009 and June 30,2010,exercised suspension option(Sch A,page 2,Line 3a(3)(A)and did not make the required minimum allocation and deposit of tax increment to the Housing Fund for the purpose of using suspension funds to meet the Fiscal Year 2009-10 SERAF obligation. Note,pursuant to Health and Safety Section 33334.2(k),repayment is required before June 30,2015. ❑ SERAF[H&SC Section 33334.2(k)]. In FY2009-10 the agency exercised option to suspend allocating and depositing a portion of the minimum 20%of gross property tax increment. Instructions: Please include amounts for ALL fiscal years between FY2009-10 and FY2014-15 (in addition to the current reporting fiscal year)to record agency compliance with repayment requirements as referenced in H&SC Section 33334.2(k)(1)(2)(3). Also report the cumulative total suspended and repaid amounts(from all project areas)in Schedule`C,page 9,box 23. Fiscal Years Applicable to Col 1 Col 2 Col 3 * SERAF Suspension and Remaining SERAF Repayment Deposit Identify SERAF Identify any SERAF Balance Amount Suspended Repayment(Deposit) (Prior year Col 3 FY 2009-2010 Made in Fiscal Year minus Current year Repayment Col.2) 2009-2010 $ $ 2010—2011 $ $ 2011 -2012 $ $ 2012-2013 $ $ l 2013—2014 $ $ 2014-2015 $ $ 1 1 Exemption(s)and Deferrals) 5. a.(l)If an exemption was claimed on Page 2,Line 3a(5)to deposit less than the required amount,complete the following information: Check only one of the Health and Safety Code Sections below(Note:An Annual Finding is required to be submitted to HCD) ❑ Section 33334.2(a)(1): No need in community to increase/improve supply of lower or moderate income housing. ❑ Section 33334.2(a)(2): Less than the minimum set-aside%(20%or 30%)is sufficient to meet the need. ❑ Section 33334.2(a)(3): Community is making substantial effort equivalent in value to minimum set-aside%(20%or 30%) and has specific contractual obligations incurred before May 1, 1991 requiring continued use of this funding. Note: Pursuant to Section 33334.2(a)(3)(C),this exemption expired on June 30, 1993 but contracts entered into prior to May 1,1991 may not be subject to the exemption sunset. ❑ Other: Specify code section and reason(s): (2)For any exemption claimed on Page 2,Line 3a(5)and Line 5a(1)above,identify- Date that initial(1')finding was adopted: / / Resolution# Date sent to HCD: mo day yr mo day yr Adoption date of reporting year finding: / / Resolution# Date sent to HCD: mo day yr mo day yr California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A Sch A(Revised:9-28-10) Page 4 of 8 n, Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Exemotions and Deferrals continued BOX#5 Identification of Project area and explanation if set-aside deposit is LESS THAN the required minimum Refer to Sch A,page 2,Line 3(a)(4): Deferral(s) 5. b.(1) If a Deferral was claimed on Page 2,Line 3a(6)to deposit less than the required amount,complete the following information: Check only one of the Health and Safety Code Sections below ❑ Section 33334.6(d): Applicable to project areas approved before 1986 in which the required resolution was sent to HCD before September 1986 regarding needing tax increment to meet existing obligations. Existing obligations can include those incurred after 1985,if net proceeds were used to refinance pre-1986 listed obligations. Note: The deferral previously authorized by Section 33334.6(e)expired. It was only allowable in each fiscal year prior to July 1,1996 with certain restrictions. ❑ Other Health&Safety Code Section here: (2) For any deferral claimed on page 2,Line 3a(6)and Line 5b(1)above,identify: Date that initial(lst)finding was adopted: / / Resolution# Date sent to HCD:. mo day yr mo day yr Adoption date of rMorting year finding: / / Resolution# Date sent to HCD: mo day yr mo day yr (3) A deferred set-aside per to Section 33334.6(d)constitutes,indebtedness to the Housing Fund. Summarize the amount(s) of set-aside deferred and repayments made during the reporting year and the cumulative amount deferred as of end of FY: REPAYMENTS Amount Deferred REPAYMENTS Cumulative Amount This Reporting FY of Deferrals During Deferred(Net of Any Fiscal Year Reporting FY Amount(s)Repaid*) (1)Last Reporting FY $ (2)This Reporting FY J $ $ $ *The cumulative amount of deferred set-aside should also be shown on HCD-C,page 3,Line 8a. If the prior FY cumulative deferral shown above differs from what was reported on the last HCD report(HCD-A and HCD-C),indicate the amount of difference and the reason(use box above if needed): Difference: $ Reason(s): California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A Sch A(Revised:9-28-10) Page 5 of 8 QS Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Deferral(s)continued (4)Section 33334.6(g)requires any agency which defers set-asides to adopt a plan to eliminate the deficit in subsequent years. If this agency has deferred set-asides,has it adopted such a plan? Yes ❑ No❑ If yes,by what date is the deficit to be eliminated? mo day yr If yes,when was the original plan adopted for the claimed deferral? mo day yr Identify Resolution# Date Resolution sent to HCD / / mo day yr When was the last amended plan adopted for the claimed deferral? / / mo day yr Identify Resolution# Date Resolution sent to HCD / / mo day yr Actual Project Area Households Displaced and Units and Bedrooms Lost Over Reyortins Year: 6. a. Redevelopment Project Activity. Pursuant to Sections 33080.4(a)(1)and(a)(3),report by income category the number of elderly and nonelderly households permanently displaced and the number of units and bedrooms removed or destroyed,over the reporting year,(refer to Section 33413 for unit and bedroom replacement requirements). Number of Households/Units/Bedrooms Project Activity VL L M AM Total Households Permanently Displaced—Elderly Households Permanently Displaced-Non Elderly Households Permanently Displaced—Total Units Lost(Removed or Destroyed)and Required to be Replaced Bedrooms Lost(Removed or Destroyed)and Required to be Replaced Above Moderate Units Lost That Agency is Not Required to Replace Above Moderate Bedrooms Lost That Agency is Not Required to Replace E4l b. Other Activity. Pursuant to Sections 33080.4(a)(1)and(a)(3)based on activities other than the destruction or removal of dwelling units and bedrooms reported on Line 6a,report by income category the number of elderly and nonelderly households permanently displaced over the reporting year: Number of Households Other Activity VL L M AM Total Households Permanently Displaced—Elderly Households Permanently Displaced-Non Elderly Households Permanently Displaced—Total c. As required in Section 33413.5,identify,over the reporting Year,each replacement housing plan required to be adopted before the permanent displacement,destruction,and/or removal of dwelling units and bedrooms impacting the households reported on lines 6a.and 6b. Date / / Name of Agency Custodian mo day yr Date / / Name of Agency Custodian mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A Sch A(Revised:9-28-10) Page 6 of 8 no Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm. Redevelopment Project Area Estimated Proiect Area Households to be Permanently Displaced Over Current Fiscal Year: 7. a. As required in Section 33080.4(a)(2)for a redevelopment project of the agency,estimate,over the current fiscal year,the number of elderly and nonelderly households,by income category,expected to be permanently displaced. (Note:actual displacements will be reported for the next reporting year on Line 6). Number of Households Project Activity VL L M AM Total Households Permanently Displaced-Elderly Households Permanently Displaced- Non Elderly Households Permanently Displaced-Total b. As required in Section 33413.5,for the current fiscal year,identify each replacement housing plan required to be adopted before the permanent displacement,destruction,and/or removal of dwelling units and bedrooms impacting the households reported in 7a. Date / / Name of Agency Custodian mo day yr Date / / Name of Agency Custodian mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. Units Developed Inside the Proiect Area to Fulfill Requirements of Other Proiect Area(s) 8. Pursuant to Section 33413(b)(2)(A)(v),agencies may choose one or more project areas to fulfill another project area's requirement to construct new or substantially rehabilitate dwelling units,provided the agency conducts a public hearing and finds,based on substantial evidence,that the aggregation of dwelling units in one or more project areas will not cause or exacerbate racial,ethnic,or economic segregation. 4 Were any dwelling units in this project area developed to partially or completely satisfy another project area's requirement to construct new or substantially rehabilitate dwelling units? ❑ No. ❑Yes. Date initial finding was adopted? / / Resolution# Date sent to HCD: mo day yr mo day yr Number of Dwe ling Units Name of Other Project Area(s) VL L M Total California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A Sch A(Revised:9-28-10) Page 7 of 8 Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Sales of Owner-Occupied Units Inside the.Proiect Area Prior to the Expiration'of Land Use Controls 9. Section 33413,(c)(2)(A)specifies that pursuant to an adopted program,which includes but is not limited to an equity sharing program, agencies may permit the sale of owner-occupied units prior to the expiration of the period of the land use controls established by the agency. Agencies must deposit sale proceeds into the Low and Moderate Income Housing Fund and within three(3)years from the date the unit was sold,expend funds to make another unit equal in affordability,at the same income level,to the unit sold. a. Sales. Did the agency permit the sale of any owner-occupied.units during the reporting year? ❑No ❑Yes $ <— Total Proceeds From Sales Over Reporting Year Number of Units SALES VL L M Total Units Sold Over Reporting Year _ b. Equal Units. Were reporting year funds spent to make units equal in affordability to units sold over the last three reporting years? []No ❑Yes $ E— Total LMIHF Spent On Equal Units Over Number of Units Reporting Year SALES VL ' L M Total Units Made Equal This Reporting Yr to Units Sold Over This Reporting Yr Units Made Equal This Reporting Yr to Units.Sold One Reporting Yr Ago Units Made Equal This Reporting Yr to Units Sold Two Reporting Yrs Ago Units Made Equal This Reporting Yr to Units Sold Three Reporting Yrs Ago Affordable Units to be Constructed Inside the Project Area Within Two Years 10. Pursuant to Section 33080.4(a)(10),report the number of very low,low,and moderate income units to be financed by any federal, state,local,or private source in order for construction to be completed within two years from the date of the agreement or contract executed over the reporting year. Identify the project and/or contractor,date of the executed agreement or contract,and estimated completion date. Specify the amount reported as an encumbrance on HCD-C,Line 6a.and/or any applicable amount designated on 1 HCD-C,Line 7a,such as for capital outlay or budgeted funds intended to be encumbered for project use within two years from the reporting year's agreement or contract date. DO NOT REPORT ANY UNITS ON THIS SCHEDULE A THAT ARE REPORTED ON OTHER HCD-As,B,OR Ds. Col A Col B Col C Col D Col E Name of Agreement Estimated Sch C Amount Sch C Amount Project and/or Execution Completion Date Encumbered Designated' Contractor Date Win 2 yrs of Col B Line 6a Line 7a VL L M Total S S S is S Is Please attach a separate sheet of paper to list additional information. California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A Sch A(Revised:9-28-10) Page 8 of 8 CITY AND CRA OF GRAND TERRACE f2l8!2010 � 8.11 AM FUND BALANCE SUMMARY PROJECTED FUND BALANCES THROUGH June 30,2011 NOTES: A. BEGINNING FUND BALANCE RESERVE Represents the Original Projected Ending Fund Balance Reserve and includes: 1 Council adopted budget adjustment increases. 2 Mid Year Adjustments 3 3rd quarter savings identified under deficit reduction program by City Manager. 4 4th quarter savings identified under deficit reduction program by City Manager. 5 Beginning Fund Balance is an indication of the projected available financial resources available to agency to undertake activities and relies on staff ability to project current FY budget outcome. 6 Beginning Fund Balance is indicated as"Unaudited"-FY 2009-10 audit has been completed and under review but not finalized. B. CHANGES IN DESIGNATION AND RESERVATIONS OF FUND BALANCE RESERVE Represents the amount of resources that is earmarked for a special purpose or prolect 1 General Fund-See City Manager Agenda Report and Budget Message. 2 WWD Fund-Segregates Capital Fees from Fund Balance from GT line maintenance operations 3 CRA Debt Service Fund Designation may be reduced to one year of CRA bonded indebtedness in the amount of$2,018,335 upon adoption of the anticipated CRA plan amendment. 4 CRA Debt Service Fund Designation also includes$150,000 designated for funding of Barton Road median project that would be transferred to the CRA Capital Projects fund upon approval of the project. 5 CRA Low Mod-Fund-Designate$1,100.000 for potential Canal Village Project. C. Estimated revenue Represents revenue reasonably determined to be due and received by the City and CRA in FY 2010-11. Revenue estimates rely on: 1 Historical revenues 2 Influence of general economy trends, 3 State of California legislation 4 Fedefallegislation 5 Information from consultants. 6 Staff input. D Proposed Expenditures Represents expenditures determined to be needed for FY 2010-11 to cant'out and maintain a level of municipal services including: 1 Public Safety 2 Building and Planning 3 Economic Development 4 Code Enforcement 5 Cultural,recreational and historical activities f CITY AND CRA OF GRAND TERRACE �, ::.,;u C 8 11 AM FUND BALANCE SUMMAR PROJECTED FUND BALANCES THROUGH June 30,2011 E Ending Fund Balance Reserve - Ending Fund Balance is an indication of the projected available financial resources that would be left over assuming: 1 Projected beginning Fund Balance is reasonably accurate. 2 Revenue received in FY 2010-11 approximates amount estimated. 3 Proposed expenditures are approved,adopted and all spent in FY 2010-11. F New Funds 1 Community Development Block Grant Fund-22. Records the CDBG revenue,commitments and Expenditures in one fund rather than the fund in which the project was budgeted. vchlist Voucher List Page: 1 11/16/2010 9:03:04AM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66025 11/4/2010 010996 CA PUB EMPLOYEES' RET. SYSTEM H2O101114930C NOV. EMPLOYEE/DEPENDENT HEALTH INS. 10-190-265-000-000 73.97 10-120-142-000-000 294.44 10-125-142-000-000 552.10 10-140-142-000-000 828.15 10-172-142-000-000 349.65 10-175-142-000-000 570.50 10-180-142-000-000 128.82 10-370-142-000-000 625.70 10-380-142-000-000 276.04 10-440-142-000-000 1,950.55 10-450-142-000=000 294.44 16-175-142-000-000 809.72 21-175-142-000-000 368.08 32-200-142-000-000 588.91 32-370-142-000-000 404.87 34-400-142-000-000 331.23 10-625-142-000-000 239.23 10-022-61-00 7,527.95 Total : 16,214.35 66026 11/4/2010 006772 STANDARD INSURANCE COMPANY Nov 00607869 0 NOV. INS- LIFE AND DISABILITY COUNCIL AGENDA ITEM NO. Page: 1 vchlist Voucher List Page: 2 11/16/2010 9:03:04AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66026 11/4/2010 006772 STANDARD INSURANCE COMPANY (Continued) 10-120-142-000-000 10.42 10-125-142-000-000 10.42 10-140-142-000-000 15.63 10-172-142-000-000 6.59 10-175-142-000-000 10.44 10-180-142-000-000 6.26 10-370-142-000-000 10.31 10-380-142-000-000 5.21 10-440-142-000-000 48.65 10-450-142-000-000 5.56 21-175-142-000-000 6.63 32-370-142-000-000 6.77 34-400-142-000-000 6.87 34-800-142-000-000 2.78 32-200-142-000-000 12.15 10-185-142-000-000 6.96 10-022-66-00 1,16570 10-625-110-000-000 3.95 16-175-142-000-000 15.26 Total : 1,356.55 66027 11/4/2010 010737 WESTERN DENTAL SERVICES INC. 002484 7730 NOV. EMPLOYEE/DEPENDENT DENTAL INSURAN 10-022-61-00 73.62 Total : 73.62 66028 11/4/2010 006772 STANDARD INSURANCE COMPANY 160-513170000( NOV. EMPLOYEE/DEPENDENT DENTAL INSURA� 10-022-61-00 1,228.92 Total : 1,228.92 66029 11/8/2010 004587 MANAGED HEALTH NETWORK 3200021624 NOVEMBER MHN INSURANCE Page: 2 vchlist Voucher List Page: 3 11/16/2010 9:03:04AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66029 11/8/2010 004587 MANAGED HEALTH NETWORK (Continued) 10-120-142-000-000 10.00 10-125-142-000-000 10.00 10-140-142-000-000 15.00 10-380-1427000-000 5.00 34-400-142-000-000 6.63 10-172-142-000-000 6.33 10-440-142-000-000 133.20 34-800-142-000-000 2.66 10-175-142-000-000 10.33 10-180-142-000-000 6.00 10=370-142-000-000 11.32 10-450-142-000-000 11.98 21-175-142-000-000 6.66 32-370-142-000-000 7.32 32-200-142-000-000 11.66 10-625-110-000-000 4.33 16-175-142-000-000 14.64 10-185-142-000-000 6.66 Total : 279.72 66030 11/8/2010 011092 METLIFE SBC KM05754034 00 NOV. EMPLOYEE DEPENDENT DENTAL INSURA& 10-022-61-00 185.72 10-180-142-000-000 50.00 Total : 235.72 66031 11/8/2010 010764 SAFEGUARD DENTAL&VISION 3399459 NOV. EMPLOYEE/DEPENDENT VISION INSURAN( 10-022-61-00 119.67 10-180-142-000-000 14.27 Total : 133.94 66032 11/9/2010 011138 SPARKLETTS 9637116 11011( October Bottled Water 10-190-238-000-000 58.94 10-450-238-000-000 10.02 10-805-238-000-000 6.03 10-440-238-000-000 66.89 Total : 141.88 Page: 3 vchlist Voucher List Page: 4 11/16/2010 9:03:04AM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66033 11/9/2010 011110 TIME WARNER CABLE Nov 844840...72 NOV/DEC CABLE & INTERNET SERVICE 10-805-238-000-000 121.43 Total : 121.43 66034 11/9/2010 010812 LOWE'S COMMERCIAL SERVICES 927946 MAINTENANCE SUPPLIES 10-440-245-000-000 62.43 10-195-245-000-000 34.38 Total : 96.81 66035 11/10/2010 001907 COSTCO#478 0478-08 0184 1E C. CARE SUPPLIES 10-440-220-000-000 176.19 Total : 176.19 66036 11/10/2010 011157 TNT FIREWORKS 11082010 Firework Sale Clean-up Deposit Refund 23-302-73-00 1,000.00 Total : 1,000.00 66037 11/15/2010 006730 SO.CA.GAS COMPANY Oct2010 Oct'CNG Fuel/Natural Gas Usage 10-175-272-000-000 7.80 10-440-272-000-000 2.60 34-800-272-000-000 2.60 10-440-238-000-000 42.50 10-190-238-000-000 225.69 Total : 281.19 66038 11/15/2010 006720 SO.CA.EDISON COMPANY Oct 2010 October Energy Usage 10-805-238-000-000 759.18 10-450-238-000-000 48.79 16-510-238-000-000 5,636.52 26-600-238-000-000 49.80 26-601-238-000-000 41.50 26-602-238-000-000 58.10 Total : 6,593.89 66039 11/15/2010 010664 SHELL FLEET MANAGEMENT 8000209687011 October Maint Vehicle Fuel 10-175-272-000-000 572.39 16-900-220-000-000 12.92 1 Page: 4 vchlist Voucher List Page: 5 11/16/2010 9:03:04AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66039 11/15/2010 010664 SHELL FLEET MANAGEMENT (Continued) Total : 585.31 66040 11/15/2010 010218 CHEVRON &TEXACO CARD SERVICES 27350982 October Vehicle Fuel 10-440-272-000-000 68.27 10-175-272-000-000 184.92 34-800-272-000-000 63.04 Total : 316.23 66041 11/15/2010 010164 GREAT-WEST PR END 10/15/2 CONTRIBUTIONS/LOANS FOR PR END 10/15/10 10-022-63-00 4,955.30 10-022-64-00 1,822.06 Total : 6,777.36 66042 11/16/2010 001213 AT&T Nov 2010 Nov/Dec Phones& Internet Service 10-440-235-000-000 566.26 10-190-235-000-000 312.84 Total : 879.10 66043 11/23/2010 010019 5 POINT AUTO SERVICE 15866 Oil Change& Filter-C.Care Bus 10-440-272-000-000 131.98 Total : 131.98 66044 11/23/2010 010678 ARCHIVE MANAGEMENT SERVICE 0148618 OCTOBER ARCHIVE TAPE STORAGE 10-140-250-000-000 55.00 10-380-250-000-000 55.00 Total : 110.00 66045 11/23/2010 010070 BEARDSLEY, KEVIN HOWARD Jul-Nov 2010 VIDEO CAMERA OPERATOR-CC MTGS 10-125-250-000-000 400.00 Total : 400.00 66046 11/23/2010 011007 BLUE SHIELD OF CALIFORNIA Dec J04365575- Dec COBRA Health-Berry Family 10-180-142-000-000 836.55 Total : 836.55 66047 11/23/2010 001840 CITY OF COLTON 001028 JULY FLOW METER RENT/TRUNKLINE SAMPLIN( 21-573-704-000-000 200.00 21-573-605-000-000 2,716.80 Page: 5 vchlist Voucher List Page: 6 11116/2010 9:03:04AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66047 11/23/2010 001840 CITY OF COLTON (Continued) Total : 2,916.80 66048 11/23/2010 011154 CITY OF LOMA LINDA 11032010 CERT Member Training Donation 10-808-221-000-000 200.00 Total : 200.00 66049 11/23/2010 010403 CITY OF REDLANDS AR129268 October CNG Fuel 10-175-272-000-000 25.03 10-440-272-000-000 12.67 Total : 37.70 66050 11/23/2010 010866 CIVIC PLUS 84671 DECEMBER WEBSITE MAINT FEE 10-125-250-000-000 633.25 Total : 633.25 66051 11/23/2010 011029 COBRA SIMPLE 91 OCT COBRA ADMINISTRATION FEE 10-190-220-000-000 50.00 Total : 50.00 66052 11/23/2010 001930 DAILY JOURNAL CORPORATION B1975765 OCT NOTICE OF HEARING 10-125-230-000-000 226.60 Total : 226.60 66053 11/23/2010 001942 DATA TICKET INC. 33446 Sept Parking Cite Processing Services 10-140-255-000-000 100.00 Total : 100.00 66054 11/23/2010 002301 FEDEX 7-291-82057 Oct/Nov Document Delivery 10-140-210-000-000 23.22 10-808-246-000-000 58.22 10-370-210-000-000 14.97 Total : 96.41 66055 11/23/2010 002740 FRUIT GROWERS SUPPLY 90636268 MAINT SUPPLIES 10450-245-000-000 603.48 90638857 WEEDEATER PARTS 10-450-246-000-000 13.04 Page: 6 vchlist Voucher List Page: 7 11/16/2010 9:03:04AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66055 11/23/2010 002740 FRUIT GROWERS SUPPLY (Continued) 90639279 MAINT SUPPLIES 10-450-245-000-000 4.88 90639742 MAINT SUPPLIES 10-450-245-000-000 4.34 90639960 PVC SUPPLIES 10-450-245-000-000 15.90 90640424 WEEDEATER REPAIRS 10-450-246-000-000 20.51 90641214 PEST ROUNDUP 10-450-245-000-000 150.59 90641267 PVC SUPPLIES 10-450-245-000-000 3.31 90641387 PVC SUPPLIES 10-450-245-000-000 4.35_ Total : 820.40 66056 11/23/2010 011093 GIFFORD, MASAKO 11022010 REIMBURSE-COUNTY FAIR SUPPLIES 10-804-220-000-000 76.94 Total : 76.94 66057 11/23/2010 010164 GREAT-WEST PR End 10/29/1( Contributions for PR End 10/29/10 10-022-63-00 4,954.53 Total : 4,954.53 66058 11/23/2010 003152 HARPER& BURNS LLPN October 2010 October Legal Services 10-160-250-000-000 5,381.88 32-200-251-000-000 5,381.88 Total : 10,763.76 66059 11/23/2010 010632 HIGH TECH SECURITY SYSTEMS 93850 DEC SECURITY CAMERA MAINT AGREEMENT 10-195-247-000-000 20.00 10-450-246-000-000 60.00 Total : 80.00 66060 11/23/2010 003200 HILKEY, HERMAN FY 10-11 Council Life Insurance Benefit 10-110-142-000-000 1,800.00 Page: 7 vchlist Voucher List Page: 8 11/16/2010 9:03:04AM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66060 11/23/2010 003200 HILKEY, HERMAN (Continued) Total : 1,800.00 66061 11/23/2010 003171 HINDERLITER de LLAMAS &ASSOC. 0017312-IN 2ND QTR SALES TAX SERVICES 10-140-250-000-000 487.50 32-200-255-000-000 487.50 Total : 975.00 66062 11/23/2010 003850 JANI-KING OF CA., INC. LAX11101017 NOVEMBER C. CARE JANITORIAL SERVICES 10-440-244-000-000 975.00 Total : 975.00 66063 11/23/2010 010773 KELLAR SWEEPING INC. 5536 OCTOBER STREET SWEEPING SERVICES 16-900-254-000-000 4,200.00 Total : 4,200.00 66064 11/23/2010 010097 NEXTEL COMMUNICATIONS 410575025 Sep/Oct Wireless Srv-Maint/C Care 10-175-240-000-000 365.28 10-440-235-000-000 51.33 Total : 416.61 66065 11/23/2010 011156 OBLAND, ETHLYN 10272010 Refund-Applicant overcharged 10-420-11 600.00 Total : 600.00 66066 11/23/2010 005400 OFFICE DEPOT 539573033001 Calendars 10-120-210-000-000 33.18 540564029001 Office Supplies&Calendars 10-140-210-000-000 152.50 Total : 185.68 66067 11/23/2010 011155 PALM CANYON CONTRACTORS INC 12722 G.T. RD. CONSTRUCTION (BID 10-02) 46-900-310-002-000 103,812.30 Total : 103,812.30 66068 11/23/2010 011074 REDFLEX TRAFFIC SYSTEMS 28444 September Contract Services 17-900-255-000-000 3,884.99 Total : 3,884.99 l `1 Page: 8 vchlist Voucher List Page: 9 11116/2010 9:03:04AM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66069 11/23/2010 006070 REDLANDS PLUMBING,HEATING, & 27680 PARTS-WOMEN'S PUBLIC RESTROOM 10-195-245-000-000 39.29 27682 PARTS-WOMEN'S PUBLIC RESTROOM 10-195-245-000-000 51.48 27683 PARTS-PUBLIC RESTROOMS 10-195-245-000-000 8.48 Total : 99.26 66070 11/23/2010 011153 REDLANDS PRINT SHOP 41582 Earthquake Manuels & CERT Flyers 10-808-221-000-000 226.38 Total : 226.38 66071 11/23/2010 010171 REPUBLIC ELECTRIC 1010111 October Response Call-outs 16-510-255-000-000 116.37 1010112 OCTOBER ROUTINE SIGNAL MAINTENANCE 16-510-255-000-000 451.68 Total : 668.05 66072 11/23/2010 006242 RIVCOMM INC 104136 REMOVE EMERG LIGHTS-TAHOE 10-175-272-000-000 110.00 Total : 110.00 66073 11/23/2010 006335 ROQUET PAVING INC. 0807.10 B-1 SIDEWALK REPLACEMENT 46-900-302-000-000 6,963.01 0807.10 B-2 HOLLY ST PUBLIC ALLEY 46-900-301-000-000 1,478.00 0807 10 B-3 PRESTON ST. REHABILITATION 46-900-303-000-000 818.40 0807.10 B-4 BARTON RD. REHAB (INCL CHG ORD. #2) 46-900-304-000-000 14,481.17 Total : 23,740.58 66074 11/23/2010 006341 ROSENOW SPEVACEK GROUP INC. 0025104 July Financial Admin 33-140-250-000-000 850.00 0025303 August Financial Admin 33-140-250-000-000 1,600.00 Page: 9 vchlist Voucher List Page: 10 11/16/2010 9:03:04AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66074 11/23/2010 006341 ROSENOW SPEVACEK GROUP INC. (Continued) Total : 2,450.00 66075 11/23/2010 006531 S.B. COUNTY SHERIFF 10230 SEPTEMBER LAW ENFORCEMENT SERVICES 10410-256-000-000 154,136.00 14-411-256-000-000 8,333.00 10410-255-000-000 4,524.00 Total : 166,993.00 66076 11/23/2010 007005 SO CAL LOCKSMITH 13526 ELECTRICAL BOX KEYS-ROLLINS PARK 10450-245-000-000 4.89 Total : 4.89 66077 11/23/2010 006778 STAPLES H498283001 OFFICE SUPPLIES 10-190-220-000-000 43.51 10-370-210-000-000 64:39 H498283011 Return-Binders 10-370-210-000-000 -28.76 H498283012 Binders 10-370-210-000-000 28.76 Total : 107.90 66078 11/23/2010 006898 SYSCO FOOD SERVICES OF L.A. 0110309291 C. CARE FOOD&SUPPLIES 10440-220-000-000 621.10 0111010591 C. CARE FOOD &SUPPLIES 10440-220-000-000 533.21 Total : 1,154.31 66079 11/23/2010 007034 TRANSPORTATION ENGINEERING 1075 Sept Traffic Engineering Srvs 10-175-255-000-000 1,757.00 Total : 1,757.00 66080 11/23/2010 007400 U. S. BANK TRUST N.A. 2709973 CRA TAB A/B Admin Fees 33-300-210-000-000 550.00 2711535 GT Custody Acct Admin Fee 33-300-210-000-000 1,000.00 Total : 1,550.00 66081 11/23/2010 007220 UNDERGROUND SERVICE ALERT 1020100287 - October Diq Alert Tickets i Page: 10 vchlist Voucher List Page: 11 11/16/2010 9:03:04AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66081 11/23/2010 007220 UNDERGROUND SERVICE ALERT (Continued) 16-900-220-000-000 46.50 Total : 46.50 66082 11/23/2010 007797 WE TIP INC. 2613 2011 City Membership 10-410-256-000-000 1,500.00 Total : 1,500.00 66083 11/23/2010 007880 WEST GROUP 821740071 OCT/NOV CA CODE UPDATES 10-125-250-000-000 483.94 Total : 483.94 66084 11/23/2010 007920 WILLDAN 002-10561 Barton Road Change Order 46-900-304-000-000 720.00 Total : 720.00 60 Vouchers for bank code: bofa Bank total : 377,288.51 60 Vouchers in this report Total vouchers : 377,288.51 Page: 11 City of Grand Terrace Warrant Register Index FD No. Fund Name Dept No. Department Name General Account Numbers 10 GENERAL FUND 110 CITY COUNCIL 110 SALARIES/WAGES 11 Street Fund 120 CITY MANAGER 139 EMPLOYEES'BENEFIT PLAN 12 Storm Drain Fund 125 CITY CLERK 140 RETIREMENT 13 Park Fund 140 FINANCE 142 HEALTH/LIFE INSURANCE 14 AB 3229 COPS Fund 160 CITY ATTORNEY - 143 WORKERS'COMPENSATION 15 Air Quality Improvement Fund 172 BUILDING&SAFETY 138/141 MEDICARE/SUI 16 Gas Tax Fund 175 PUBLIC WORKS 210 OFFICE EXPENSE 17 Traffic Safety Fund/TDA Fund 180 COMMUNITY SERVICES 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 370 COMMUNITY&ECONOMIC DEV 235 COMMUNICATIONS 26 LSCPG/LGHTG Assessment Dist 380 MGT INFORMATION SYSTEMS 238-239 UTILITIES 44 Bike Lane Capital Fund 410 LAW ENFORCEMENT 240-242 RENTS&LEASES 46 Street Improvement Projects 430 RECREATION SERVICES 245-246 MAINT BLDG GRNDS EQUIPMNT 47 Barton Rd. Bridge Project 440 CHILD CARE 250-251 PROFESSIONAL SERVICES 32 CRA-CAPITAL PROJECTS FUND 450 PARKS MAINTENANCE 255-256 CONTRACTUAL SERVICES 33 CRA-DEBT SERVICE FUND 631 STORM DRAIN MAINTENANCE 260 INSURANCE&SURETY BONDS 34 CRA-LOW&MOD HOUSING 801 PLANNING COMMISSION 265 MEMBERSHIPS&DUES 802 CRIME PREVENTION UNIT 268 TRAINING 804 HISTORICAL&CULTURAL Comm. 270 TRAVEUCONFERENCES/MTGS 805 SENIOR CITIZENS PROGRAM 272 FUEL&VEHICLE MAINTENANCE 807 PARKS&REC COMMITTEE 570 WASTEWATER TREATMENT 808 EMERGENCY OPERATIONS PROG. 33-300 DEBT SERVICE 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 vchlist Voucher List Page: 1 12107/2010 9:25:53AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66085 11/16/2010 001206 ARROWHEAD CREDIT UNION Oct/Nov 2010 Oct/Nov Visa Charges 10-120-210-000-000 Printer Cartridges 301.91 10-440-228-000-000 C Care Supplies 72.93 10-440-221-000-000 C Care Supplies 14.91 23-200-14-00 C. Care Supplies 263.18 23-200-12-00 Halloween Haunt Candy 1,52000 10-175-272-000-000 Tahoe Maintenance 57.50 10-440-235-000-000 C. Care Phone Bill 256.53 Total: 2,486.96 66086 11/17/2010 005702 PUBLIC EMPLOYEES' RETIREMENT PRend 10-29-10 CONTRIBUTIONS FOR PREND 10-29-10 10-022-62-00 16,944.92 Total: 16,944.92 66087 11/23/2010 011160 AMERICAN ARBITRATION ASSOC. 11232010 FILING FEE 10-160-250-000-000 975.00 Total: 975.00 66088 11/23/2010 011110 TIME WARNER CABLE Nov 844840...382! NOWDEC CABLE& INTERNET SERVICE 10-805-238-000-000 58.91 Total: 58.91 66089 11/23/2010 011110 TIME WARNER CABLE Nov 844840...381' NOV/DEC CABLE& INTERNET SERVICE 10-805-238-000-000 58.91 Total: 58.91 66090 11/23/2010 010697 ZIONS BANK Dec 2010 December HVAC Lease Payment 10-195-257-000-000 14,409 50 Total: 14,409.50 66091 11/29/2010 001907 COSTCO#478 0478 10 0087 117 C. CARE SUPPLIES 10-440-220-000-000 217.27 Total: 217.27 66092 11/29/2010 001213 AT&T NOV 2010 Nov/Dec Phones& Internet Sry 1 Page: 1 J vchlist Voucher List Page: 2 12/07/2010 9:25:53AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66092 11/29/2010 001213 AT&T (Continued) 10-805-235-000-000 164.20 10-808-235-000-000 83.99 10-440-235-000-000 172.09 10-190-235-000-000 507.82 10-450-235-000-000 -47.23 Total: 975.33 66093 11/29/2010 010996 CA PUB EMPLOYEES' RET. SYSTEM H2010121493000 DEC. EMPLOYEE/DEPENDENT HEALTH INS. 32-370-142-000-000 404.87 34-400-142-000-000 331.23 10-022-61-00 7,527.95 10-625-142-000-000 239.23 10-190-265-000-000 11.81 10-120-142-000-000 29444 10-125-142-000-000 552.10 10-140-142-000-000 828.15 10-172-142-000-000 349.65 10-175-142-000-000 570.50 10-180-142-000-000 128.82 10-370-142-000-000 625.70 10-380-142-000-000 276.04 10-440-142-000-000 1,950.55 10-450-142-000-000 294.44 16-175-142-000-000 809.72 21-175-142-000-000 368.08 32-200-142-000-000 588.91 - Total: 16,152.19 66094 11/29/2010 005702 PUBLIC EMPLOYEES' RETIREMENT PRend 11-12-10 CONTRIBUTIONS FOR PREND 11-12-10 10-022-62-00 16,808 72 Total: 16,808.72 66095 12/1/2010 001907 COSTCO#478 12012010 Additional Memebership Card-Cruz 10-190-265-000-000 40.00 Total: 40.00 Page. 2 vchlist Voucher List Page: 3 12/07/2010 9:25:53AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66096 12/1/2010 011160 AMERICAN ARBITRATION ASSOC. 12012010 ADDITIONAL ARBITRATION FEES 10-160-250-000-000 525.00 Total: 525.00 66097 12/6/2010 001038 VERIZON WIRELESS-LA 0926565633 Nov/Dec Wireless Srv-Public Works 10-175-240-000-000 100.90 Total: 100.90 66098 12/6/2010 003210 DEPT 32-2500233683 3134714 MAINT SUPPLIES - 10-195-245-000-000 56.09 10-450-245-000-000 79.49 5023935 MAINT SUPPLIES 10-195-245-000-000 38.11 Total: 173.69 66099 12/6/2010 001213 AT&T Nov 909 254-012E Nov/Dec Phones&Internet Service - 10-190-235-000-000 125.13 Total: 125.13 66100 12/6/2010 006720 SO.CA.EDISON COMPANY Nov 2010 November Energy Usage 10-805-238-000-000 645.09 34-400-238-000-000 87.91 10-175-238-000-000 31.97 10-172-238-000-000 39.96 10-450-238-000-000 1,504.29 16-510-238-000-000 540.68 10-190-238-000-000 2,515.56 10440-238-000-000 768.36 Total: 6,133.82 66101 12/6/2010 001907 COSTCO#478 0478 07 0115 17 C. CARE SUPPLIES 10-440-220-000-000 97.98 Total: 97.98 66102 12/6/2010 010164 GREAT-WEST PR End 11/12/201 Contributions for PR End 11/12/10 10-022-63-00 4,957.85 Total: 4,957.85 Page. 3 � JJ vchlist Voucher List Page: 4 12/07/2010 9:25:53AM CITY OF GRAND TERRACE Bank code: bola Voucher Date Vendor Invoice Description/Account Amount 66103 12/6/2010 010164 GREAT-WEST PR End 11/26/201 Contributions for PR End 11/26/10 10-022-64-00 1,822.06 10-022-63-00 4,967.16 Total: 6,789.22 66104 12/6/2010 011164 JACOBSEN FAMILY HOLDINGS 11022010 Reimb-Comm'I Imps-Barton/Michigan 32-600-304-000-000 52,214.00 Total: 52,214.00 66105 12/7/2010 001024 UNITED STATES TREASURY 254774 Window Envelopes 10-370-210-000-000 106.03 10-185=210-000-000 106.03 254795 DECEMBER SR. NEWSLETTER PRINTING 10-805-222-000-000 9051 Total: 302.57 66106 12/14/2010 007402 (NEOPOST POSTAGE-ON CALL), U.S. POSTAI 11302010 Postage for Meter#74456587 10-190-211-000-000 4,000.00 Total: 4,000.00 66107 12/14/2010 010019 5 POINT AUTO SERVICE 15902 Oil Change for F-150 10-175-272-000-000 36.33 Total: 36.33 66108 12/14/2010 011143 ALBERT A.WEBB ASSOCIATES 103307 OCT PROFESSIONAL SERVICES 32-200-250-000-000 7,173.41 103441-A OCT CONSTRUCTION MGT&INSPECT SRVS 46-900-310-004-000 5,522.40 103441-B OCT CONSTRUCTION SURVEYING SRVS 46=900-310-004-000 3,068.80 Total: 15,764.61 66109 12/14/2010 010293 AVAYA, INC. - 2730548366 NOV/DEC PHONENOICE MAIL MAINT 10-190-246-000-000 183.46 Total: 183.46 66110 12/14/2010 001383 BARR DOOR INC. 14114 City Hall Door Repairs 10-195-245-000-000 205.06 Page: 4 vchlist Voucher List Page. 5 12/07/2010 9:25:53AM CITY OF GRAND TERRACE Bank code. bofa Voucher Date Vendor Invoice Description/Account Amount 66110 12/14/2010 001383 BARR DOOR INC. (Continued) Total: 205.06 66111 12/14/2010 001498 CALIFORNIA BUILDING OFFICALS 7693 CALBO EDUCATION WEEK-SHIELDS 10-172-268-000-000 300.00 Total: 300.00 66112 12/14/2010 011031 CINTAS CORPORATION#150 150241487 C. CARE PAPER GOODS&SUPPLIES 10-440-228-000-000 172.63 150250639 C. CARE PAPER GOODS&SUPPLIES 10-440-228-000-000 190.03 Total: 362.66 66113 12/14/2010 010147 CORTES, BEA 11152010 Transportation Summit 10/29/10 10-110-270-000-000 17365 Total: 173.65 66114 12/14/2010 010711 DANKA FINANCIAL SERVICES 73519886 DEC. E-STUDIO 350 TOSHIBA COPIER 10-172-246-000-000 79.79 10-175-246-000-000 79.78 Total: 159.57 66115 12/14/2010 001950 DATA QUICK B1-1871150 October Subscription Srvs 10-380-250-000-000 43.50 10-370-250-000-000 43.50 34-800-220-000-000 43.50 Total: 130.50 66116 12/14/2010 001942 DATA TICKET INC. 33775 Oct. Parking Cite Processing Services 10-140-255-000-000 100.00 Total: 100.00 66117 12/14/2010 002082 DISCOUNT SCHOOL SUPPLY D13125070101 PRESCHOOL SUPPLIES 10-440-228-000-000 574.05 Total: 574.05 66118 12/14/2010 011061 EZ SUNNYDAY LANDSCAPE 10964 GTB 10-03 G.T. RD. LANDSCAPE IMPS 32-600-320-000-000 33,907.50 1 Page. 5 C vchlist Voucher List Page: 6 1210712010 9:25:53AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66118 12/14/2010 011061 EZ SUNNYDAY LANDSCAPE (Continued) Total: 33,907.50 66119 12/14/2010 011159 FRANKS FENCE&SUPPLY CO. INC. 70694 FURNISH/INSTALL/REPAIR FENCE-C. CARE 10-440-246-000-000 1,150.00 Total: 1,150.00 66120 12/14/2010 002740 FRUIT GROWERS SUPPLY 90644139 PVS SUPPLIES 10-450-245-000-000 27.93 90644316 PVC SUPPLIES 10-450-245-000-000 2.41 Total: 30.34 66121 12/14/2010 002901 G.T.AREA CHAMBER OF COMMERCE 6269-RDA NOV. CONSULTANT SERVICES&MARKET 32-370-213-000-000 980.00 Total: 980.00 66122 12/14/2010 002795 GARCIA, LEE ANN Dec 2010 Dec Health Ins Reimbursement 10-110-142-000-000 368.06 Total: 368.06 66123 12/14/2010 010268 HASCO TAG COMPANY 77089 Dog Tags 10-200-15 256.96 Total: 256.96 66124 12/14/2010 003170 HdL COREN &CONE 0016508-IN Oct-Dec 2010 Property Tax Contract 32-200-250-000-000 625.00 Total: 625.00 66125 12/14/2010 003224 HYDRO-SCAPE PRODUCTS INC. 06660122-00 LANDSCAPE MAINT SUPPLIES 10-195-245-000-000 30.58 Total: 30.58 66126 12/14/2010 003224 HYDRO-SCAPE PRODUCTS INC. 06659009-00 LANDSCAPE MAINT SUPPLIES 10-450-245-000-000 3.70 Total: 3.70 66127 12/14/2010 011158 L-1 ENROLLMENT SERVICES Oct 360910764 Fingerprinting-N.Wobken 10-440-228-000-000 92.00 Page: 6 vchlist Voucher List Page: 7 12/07/2010 9:25:53AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66127 12/14/2010 011158 L-1 ENROLLMENT SERVICES (Continued) Total: 92.00 66128 12/14/2010 011163 LAWYER'S TITLE 12062010 Agency Loan Reconveyance Fee 34-400-210-000-000 60.00 Total: 60.00 66129 12/14/2010 011162 MCGUIRE, SALLY 12062010 Halloween Haunt Reimbursement 23-200-12-00 49.93 Total: 49.93 66130 12/14/2010 004670 MIRACLE MILE CAR WASH 587111 September Vehicle Maintenance 10-440-272-000-000 38.00 Total: 38.00 66131 12/14/2010 011161 NEW 2 YOU 100 Santa Rental for Christmas Program 10-440-228-000-000 100.00 Total: 100.00 66132 12/14/2010 010097 NEXTEL COMMUNICATIONS 410575025-099 Oct/Nov Wireless Srv-Maint/C Care 10-175-240-000-000 318.15 10-440-235-000-000 50.22 Total: 368.37 66133 12/14/2010 005400 OFFICE DEPOT 539515152001 Kitchen Supplies 10-190-210-000-000 17.04 539576943001 EOC Wall Calendar 10-808-210-000-000 53.77 Total: 70.81 66134 12/14/2010 011099 ORANGE COUNTY STRIPING SVC 0043565 Street Sign 10-195-245-000-000 338.00 Total: 338.00 66135 12/14/2010 011155 PALM CANYON CONTRACTORS INC 12739 G.T. RD CONSTRUCTION (BID 10-02) 46-900-310-002-000 84,358.80 Total: 84,358.80 66136 12/14/2010 005586 PETTY CASH 12032010 Replenish C. Care Petty Cash „� Page: 7 vchlist Voucher List Page. 8 12107/2010 9:25:53AM CITY OF GRAND TERRACE Bank code bofa Voucher Date Vendor Invoice Description/Account Amount 66136 12/14/2010 005586 PETTY CASH (Continued) 10-440-210-000-000 29•95 10-440-220-000-000 8602 10-440-221-000-000 66.01 10-440-223-000-000 66.03 10-440-228-000-000 69.82 10-440-272-000-000 34.95 Total: 352.78 66137 12/14/2010 005720 QUILL CORP 9119268 Printer Cartridges 10-370-210-000-000 345.81 10-180-230-000-000 345.81 Total: 691.62 66138 12/14/2010 011074 REDFLEX TRAFFIC SYSTEMS 28905 October Contract Services 17-900-255-000-000 3,407.11 Total: 3,407.11 66139 12/14/2010 011150 REDLANDS FORD 112910-1 2011 FORD ESCAPE HYBRID 4WD 15-500-705-000-000 31,875 52 Total: 31,875.52 66140 12/14/2010 006310 ROADRUNNER SELF STORAGE INC. 12056 DECEMBER STORAGE RENTAL 10-140-241-000-000 119.00 Total: 119.00 66141 12/14/2010 010249 ROGERS,ANDERSON, MALODY ET AL 30906 Progress Billing FY09-10 Audit 10-140-250-000-000 6,431.00 33-140-250-000-000 1,919.00 34-140-250-000-000 1,650.00 Total: 10,000.00 66142 12/14/2010 006385 ROQUET PAVING INC. 1107-10 Street Repair-Barton &Mt.Vernon 16-900-257-000-000 3,55000 Total: 3,550.00 66143 12/14/2010 006510 S.B. COUNTY INFORMATION 10565 October On-Call Pager Access 10-175-240-000-000 9.00 Page. 8 vchlist Voucher List Page: 9 12/07/2010 9:26:53AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 66143 12/14/2010 006510 S.B. COUNTY INFORMATION (Continued) Total: 9.00 66144 12/14/2010 006435 SAN BERNARDINO, CITY OF 5236 NOV ANIMAL CONTROUHOUSING SRVS 10-187-256-000-000 8,682.00 Total: 8,682.00 66145 12/14/2010 006681 SMART&FINAL 11/30/10 44 318 SCHOOL AGE SUPPLIES 10-440-223-000-000 85.11 Total: 85.11 66146 12/14/2010 011071 STANCKIEWITZ,W. Dec 2010 Dec. Health Ins. Reimbursement 10-110-142-000-000 368.06 Total: 368.06 66147 12/14/2010 006775 STANDARD CHAIR OF GARDNER INV170295 2 EA. LAMPS#665-PERSONALIZED 10-110-220-000-000 511.00 Total: 511.00 66148 12/14/2010 010136 SWRCB FEES WD-0052497 FY 10-11 Annual Permit Fee 10-625-220-000-000 5,400.00 Total: 5,400.00 66149 12/14/2010 006898 SYSCO FOOD SERVICES OF L.A. 0111712832 C CARE FOOD&SUPPLIES 10-440-220-000-000 493.25 0120112974 C. CARE FOOD&SUPPLIES 10-440-220-000-000 633.92 Total: 1,127.17 66150 12/14/2010 011152 WALLY'S CARPETS 1671 FURNISH/INSTALL COMM'L VINYL CLOSET 10-440-245-000-000 700.00 Total: 700.00 66151 12/14/2010 007854 WESTERN EXTERMINATORS CO 523870 OCTOBER PEST CONTROL SERVICES 10-195-245-000-000 125.00 10-805-245-000-000 33.00 10-440-245-000-000 144.00 Total: 302.00 Page. 9 vchlist L^Voucher List J Page: 10 12107/2010 9:25:53AM CITY OF GRAND TERRACE Bank code bofa Voucher Date Vendor Invoice Description/Account Amount 66152 12/14/2010 007920 WILLDAN 002-10718 A OCTOBER INSPECTION SERVICES 10-172-250-000-000 1,130.00 002-10718 B OCTOBER PLAN CHECK SERVICES 10-172-250-000-000 715.00 002-1.0719 Oct. Inspection Srvs-Pico St, 23-302-76-01 300.00 002-10720 OCTOBER ENGINEERING SERVICES 10-175-255-000-000 2,940.00 022-10163 G.T. RD. GEOTECHNICAL TESTING SRVS 46-900-310-003-000 3,462.50 Total: 8,547M 66153 12/14/2010 007987 XEROX CORPORATION 051909570 NOV XEROX WORKCENTRE 5755 10-190-700-000-000 308.10 Total: 308.10 66154 12/14/2010 007987 XEROX CORPORATION 051909569 NOV LEASE XEROX CC265H 10-190-700-000-000 294.34 Total: 294.34 70 Vouchers for bank code: bofa Bank total: 361,696.12 70 Vouchers in this report Total vouchers: 361,696.12 Page: 10 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 SALARIESNVAGES 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 SERVICES 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 370 COMMUNITY&ECONOMIC DEV 235 COMMUNICATIONS 26 LSCPG/LGHTG Assessment Dist 380 MGT INFORMATION SYSTEMS 238-239 UTILITIES 44 Bike Lane Capital Fund 410 LAW ENFORCEMENT 240-242 RENTS&LEASES 46 Street Improvement Projects 430 RECREATION SERVICES 245-246 MAINT BLDG GRNDS EQUIPMNT 47 Barton Rd. Bridge Project 440 CHILD CARE 250-251 PROFESSIONAL SERVICES 32 CRA-CAPITAL PROJECTS FUND 450 PARKS MAINTENANCE 255-256 CONTRACTUAL SERVICES 33 CRA-DEBT SERVICE FUND 631 STORM DRAIN MAINTENANCE 260 INSURANCE&SURETY BONDS 34 CRA-LOW&MOD HOUSING 801 PLANNING COMMISSION 265 MEMBERSHIPS&DUES 802 CRIME PREVENTION UNIT 268 TRAINING 804 HISTORICAL&CULTURAL COMM. 270 TRAVEUCONFERENCES/MTGS 805 SENIOR CITIZENS PROGRAM 272 FUEL&VEHICLE MAINTENANCE 807 PARKS&REC COMMITTEE 570 WASTEWATER TREATMENT 808 EMERGENCY OPERATIONS PROG. 33-300 DEBT SERVICE 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. 'eab�t Bernie Simon, Finance Director CITY OF GRAND TERRACE PENDING CITY COUNCIL APPROVAL CITY COUNCIL MINUTES REGULAR MEETING -NOVEMBER 9,2010 A regular meeting of the City Council of the City,of Grand Terrace was called to order in the Council Chambers, Grand Terrace Civic Center, 22795 Barton Road, Grand Terrace, California, on November 9, 2010 at 6:00 p.m. PRESENT: Maryetta Ferrd,Mayor Lee Ann Garcia, Mayor Pro Tern Walt Stanckiewitz, Councilmember Betsy M. Adams, City Manager Brenda Mesa, City Clerk Bernard Simon, Finance Director Joyce Powers, Community&Economic Development Director Richard Shields, Building & Safety Director John Harper, City Attorney Sgt. Carlos Espinoza, San Bernardino County Sheriff's Department ABSENT: Bea Cortes, Councilmember Rick McClintock, San Bernardino County Fire Department The City Council meeting was opened with Invocation by Mayor Pro Tem Lee Ann Garcia, followed by the Pledge of Allegiance led by CouncilMayor Pro Tern Lee Ann Garcia. Mayor Ferre announced that Councilmember Bea Cortes will not be at the meeting because she is having surgery. She wished her a speedy recovery and indicated that she will be at the December 14, 2010 Council Meeting if she has made good progress by then. Mayor Ferre also announced that JoAnn Carlstrom passed away early this morning. JoAnn was a very vital member of the community of Grand Terrace. Our thoughts are with Gene Carlstrom and his family. ITEMS TO DELETE -None SPECIAL PRESENTATIONS 2A. Chamber of Commerce Business of the Month Sally McGuire, President Grand Terrace .Area Chamber of Commerce, announced that Subway is the business of the Month for the month of October. She reminded everyone that the monthly Chamber of Commerce luncheon will be held on the third Tuesday of the month. She also reported that Market night will be on the first Monday of December and it will be the last market night until Spring. COUNCIL AGENDA ITEM NO. r Council Minutes 11/09/2010 Page 2 2B. Introduction of Blue Mountain Villas Community Manager-Ms. Shaddox City Manager Betsy Adams,introduced the new Manager for the Blue Mountain Villas,C.J. Shaddox. C.J. Shaddox,Manager of the Blue Mountain Senior Villas,explained what the Villas have to offer and is happy to be a part of serving the seniors of Grand Terrace. 2C. Grand Terrace Recycling Award Matt Wirz, Management Analyst, stated that this is the first year for the Grand Terrace Residential Recycling Challenge. The program started as an innovative way to entice residents to recycle. Recycling helps our environment by reducing energy related air pollution and diverts unnecessary waste away from the landfills. Jimmy Tatosian,Burrtec,reported that they are very proud to present this award to Bill and Gail Woodson and presented them with a certificate and one year of free residential collection service from Burrtec. 2D. Foundation of Grand Terrace Presentation of a Check to Citizen Patrol Darcy McNaboe, Foundation of Grand Terrace, gave an overview of the Foundation of Grand Terrace. She presented a check in the amount of$1,500.00 to the Grand Terrace Citizen's Patrol to defray the cost of uniforms for upcoming community graduates. She also announced that as part of their focus on Youth Development they have begun to bring together a group of community members to discuss and determine needed youth programs beyond those that are currently offered. She encouraged anyone that is interested in participating to contact her. CONSENT CALENDAR CC-2010-88 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEMBER STANCKIEWITZ, CARRIED 3-0-1-0 (COUNCILMEMBER CORTES WAS ABSENT), to approve the following Consent Calendar Items with the removal of item 3A.: 3B. Waive Full Reading of Ordinances on Agenda 3C. Approval of 10-12-2010 Minutes 3D. Resolution Amending Interfund Loan from Facilities Fund (19) to Traffic Safety Fund(17)for Payment of$72,203.75 to Redflex Traffic Systems,Inc. 3E. Award Contract for Design Services - Disabled Access Barrier Removal at City Hall (Willdan Engineering) Council Minutes 11/09/2010 Page 3 3F. National Pollutant Discharge Elimination System, (NPDES) Stormwater Permit Implementation Agreement, Santa Ana Region NPDES No. CAS618036, Order No. R8-2010-0036 3G. Award- Contract for Baseball Field Construction (Rock Bottom, Inc.)/Approve Right of Entry with the Colton Joint Unified School District/Resolution Adopting Certain Findings Regarding the Construction and Installation of Public Improvements, Which are of Benefit to the Grand Terrace Community Redevelopment Project Area 3H. Continuing Appropriations FY 2010-2011 3I. Award-Contract for the Grand Terrace Senior Center Commercial Kitchen Remodel (DJD Group Inc.) .3J. Historical & Cultural Activities Committee Minutes of 10-04-2010 ITEMS REMOVED FROM CONSENT CALENDAR 3A. Check Register Dated 11-09-2010 Debra Hurst, 22950 Orangewood Court, requested an explanation of services for the following voucher numbers: #65998 -Billing for Fringe Benefit Research in the amount of $1,843.50, #66006 - Phillips Software Support in the amount of$105.00 and #65936 - iArrowhead Credit Union for September and October Visa Charges. CC-2010-89 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEMBER STANCKIEWITZ, CARRIED 3-0-1-0 (COUNCILMEMBER CORTES WAS ABSENT),to approve Check Register Dated November 9, 2010. PUBLIC COMMENT -None COUNCIL REPORTS Ma or Maryetta Ferrd,requested that the City Attorney make a brief statement regarding the FPPC's opinion pertaining to the City Contract with the.Chamber of Commerce and the Blue Mountain Outlook. City Attorney John Hamer,reported that he asked the FPPC to review the agreement between the Chamber of Commerce and the City to determine whether or not there was any potential for mass mailing violations. The conclusion was as follows: No, a mailing sent by the Chamber is not"sent at public expense"for purposes of section 89001, mearly because the Chamber receives some public monies from the Agency unless the Agency expressly funds the production and distribution of the mailing sent by the Chamber. Mayor Ferrel,reported that the City and the Foundation of Grand Terrace announced on June Council Minutes 11/09/2010 Page 4 14, 2010 the start of a First Annual Children's Art Contest. This years theme was "Happy Dogs Love Grand Terrace". The submittal deadline was August 20,2010. The majority of the artwork that was received was from the Grand Terrace Child Care Center,there were a total of 55 pieces of artwork submitted. The money was generously donated for the printing of the calendars and all 55 pieces of artwork are featured in the calendar. The calendars are $10.00 each and can be purchased at the Community Development Counter, Grand Terrace Branch Library and the Grand Terrace Child Care Center. 100% of the proceeds will go towards the purchase of a dog water fountain. Mayor Pro Tern Garcia, reported that the Halloween Haunt was a nice event. She thanked all the individuals that made this even happen. The weekend following the Halloween Haunt, the Country Fair, hosted by the Grand Terrace Historical and Cultural Activities Committee, was held and was nice as well. She thanked the Woman's Club for putting together a member directory. She is looking forward to hearing more about the Youth Development that the Foundation is doing. She requested that the schools do their quarterly reports to the City Council so that they can hear what is going on. She wished everyone a Happy Thanksgiving. Councilmember Walt Stanckiewitz, reported that trash pick-up days are changing and indicated that the schedule and map is available on the City website. He requested that the meeting be adjourned in memory of JoAnn Carlstrom. " PUBLIC HEARINGS 6A. Development Agreement - Jacobsen - An Ordinance Adopting Development Agreement 09-01 Applicable to Approximately 12.5 Acres of the Grand Terrace Town Square Master Development Plan Councilmember Walt Stanckiewitz made the following announcement relative to this item: We have been spending a lot of time with the Fair Political Practices Commission,trying to get readings on a lot of things. John Harper, our City Attorney on my behalf, submitted a written request for a determination on whether I had a conflict of Interest with my business as it related to the Town Square Project. We have gotten written confirmation from the FPPC that I do not have a conflict of Interest and therefore I may participate in any future dealings with the Town Square Project so I'm not excusing myself and stepping out this evening. The letter from the FPPC is on file in the City Clerk's Department. Community and Economic Development Director Joyce Powers, gave an overview on the proposed Development Agreement for the Grand Terrace Town Square Project between the City of Grand Terrace, Dennis D. Jacobsen Family Holdings and Stater Bros. Markets. Council Minutes 11/09/2010 Page 5 Mayor Ferre opened the Public Hearing for discussion. Doug; Wilson, 12168 Observation Drive, indicated that he is the Planning Commission Chairman. He did not recommend this Development Agreement to the Council for approval and neither did Vice-Chairman Addington. He felt that the Development Agreement may be premature, that does not mean that it is premature. Ordinarily they see a much more detailed document. They had a discussion about that during the Planning Commission -' Meeting. The Development Agreement as it stands, the Developer receives protections regarding entitlements, fees, moratoriums, assignment, impositions and guarantees of approvals and in return the City is a little bit short on development standards and performance standards and specific conditions of approval, which he is concerned about. They were not able to recommend it for approval and would suggest that the City Council look closely at these items, make sure that there are performance standards. Mayor Ferre closed the Public Hearing and returned discussion to the Council. Councilmember Stanckiewitz,stated that after going through this packet he came to the same conclusion that Mr. Wilson just expressed. He would like to see if a caviat could be added that they approve the agreement with the condition that the economic incentives that are tied to the development agreement would expire if the grocery store isn't built in five years. Meaning the 1.2 million dollars that the Redevelopment Agency put up, if the store is not -% built in five years that 1.2 million is off the table. He would like to see if we can remove from the DDA parcels 1167-311-01 and 1167-231-01,which are City owned,so those could be available for public use given the alternatives that were presented to the Council during the Barton Road Specific Plan update so that those would go towards public use instead of a commercial development. Mayor Pro Tem Garcia, she feels that any type of agreements that Council moves forward they need to be very clear on the specifics. She stated that the Council does not get to see the reports until the Wednesday prior to the meeting. She has asked the City Manager and Staff to consider more workshops and opportunities to meet with the residents to let them know what is coming down to get that front-end input and dialog going with the residents. She does not want in anyway to harm the relationship the City has established with Jacobsen and with Stater Brothers. She stated that in a month there will be two new Councilmembers and she is looking forward to working positively with whoever is sitting up here at the dias and unless staff can explain to her a reason why this has to go tonight she would like to have further analysis and to continue this to the next meeting. Mayor Ferre,responded that this has not been an urgent thing. She has followed this project for 8 years and has read volumes of material as have the rest of the Council. She understands the ramifications of this project and the importance of it to the community. This is not a rushed thing, it has been going on a very long time and doesn't feel the need to postpone it Council Minutes 11/09/2010 Page 6 and would be disappointed if she didn't have an opportunity to vote because she is prepared to vote on this project that she has researched for nearly 8 years. We have worked toward this, if Council has some changes that they want to make then it should be discussed but would like to move forward. Councilmember Stanckiewitz, concurred with Mayor Ferr6. City Attorney Harper, stated that this is an Ordinance and it requires three affirmative votes. The development agreement, as a practical matter only solidifies the approvals that have already been given to the project. There is nothing new in it outside of some of the fee credits which are essentially statutory that affect the project. Council has already approved all of the underlying pieces. This simply says that those underlying aren't going to change for some specified period of time. Councilmember Stanckiewitz,stated that there is a second reading and the new Council will have to approve the second reading. Mayor Pro Tem Garcia, stated that she would like to see where the control is in the Agreement. Councilmember Stanckiewitz, stated that it is his job to sell this City to businesses so that they will come to Grand Terrace. His next j ob,when they decide to come,is to try and make their move into this City or occupation of a building or building of a building as few hurdles as possible to welcome them in. It is our j ob to make this city attractive. He feels that in the 8 years that the Mayor has been working with Stater Bros. we have tried to make it as attractive as possible. They have committed to us with this store and he feels that they have committed even beyond that,that they are taking the risk that not only are we going to build the store we are going to take the responsibility to bring in tenants into other pads. They don't succeed if they don't bring tenants. Mayor Pro Tem Garcia, questioned where that is stated in the development agreement. Councilmembetr Stanckiewitz,responded that it is in the Master Development Agreement. The pads are shown on Development Unit 1. It is their responsibility to fill those pads and they have an economic incentive to do that. They need to make money to pay for this project. Mayor Ferr6,stated that not only has Stater Bros.invested in this but so has Jacobsen,rather hansomely. Mayor Pro Tem Garcia, stated that we all have to vote the way we are and she challenged staff to tell her the urgency to this and she hasn't heard anything other than the Attorney Council Minutes 11/09/2010 Page 7 saying that this really isn't changing anything. Community and Economic Development Director Powers,responded that they are not here indicating to the Council that this an urgent matter, however she feels through the public hearing process you may hear from the other parties what they will be doing subsequent to this and that she will share with the Council. She stated that Mr. Shields will also confirm that they are prepared to pull the grading permit and start grading next week. They would like to pull the building permit for the grocery store before the end of the calendar year. Providing them with this certainty is necessary for them to meet those.dates. If we choose not to assist them in meeting those,dates she would assume that they wouldn't meet their 751h Anniversary commitment to open the store next year. Staff is not saying that it is an urgent matter,pressuring you.to do it this evening,they are just telling Council what the alternative is. Mayor Pro Tem Garcia, questioned if Mr. Slaten from Stater Bros. would comment. Mike Slaten, Stater Bros. Market, stated that he agrees with Councilmember Stanckiewitz. They told the Council what they-were going to do to get the store open and they will do what they need to do. He stated that as far as removing those two properties from the agreement, they would be ok;with it as long as they would be able to,fulfil the agreements that they have U with Jacobsen on what would be allowed to go on the pads. He stated that as far as the timing issue,it is going to be their 751h Anniversary and that only comes around once. They are ready to move forward and they would like to get on site and start. This will take them to the end of August or September for the grand opening. City Attompy H rper, stated that the other properties are subject to all the other approvals, they are just simply not a part of this development agreement. The uses that have already been approved for the entire project would apply to properties whether they are in the Development Agreement or not. Mayor Pro Tem Garcia, feels that Councilmember Stanckiewitz must have had a lot of briefing to be up to speed. Councilmember Stanckiewitz, stated that he watched every Council Meeting and knows exactly what,took place. He was unable to vote on it, however,he watched it all. Mayor Pro Tem Garcia,clarified that Councilmember Stanckiewitz'position is that he is for the Development of Town Center. Councilmember Stanckiewitz, responded in the affirmative. Mayor Pro Tem Garcia, questioned if Councilmember Stanckiewitz was willing to do Council Minutes 11/09/2010 Page 8 whatever it takes to make this happen or is there caviats there. Councilmember Stanckiewitz,responded that he will do whatever is legally possible for this City to make it happen. City Attorney Harper,stated that what is on the Agenda tonight is a City Agreement with the Developer called the Development Agreement. That is different than the DDA,which was approved seven or eight years ago. The DDA governed all the properties beyond and - including.this property. What has happened in the interim is that the Council approved a Town Center Project which also includes more than the properties subject to this Development Agreement. He expects when it comes time to develop the remainder of the Town Center, the developer, whoever it is, will come forward with another Development Agreement request. The DDA is a Redevelopment Agency document which just has to do with the potential disposition of Agency owned properties. All the uses are governed by the City rules, which you have adopted in the Town Center. Councilmember Stanckiewitz, stated that what he is trying to accomplish by removing the two properties from the-DDA is making a commitment to the City that we are going to seriously consider that land for public use. It was talked about with the Barton Road Specific Plan Update that came to Council. He is trying to move preemptively so that we have that property available when time comes for.us to start talking about a public use facility and it's no longer a part of this commercial development. Mayor Pro Tern Garcia, questioned if Councilmember Stanckiewitz had discussions with Staff related to those properties. Councilmember Stanckiewitz, responded in the affirmative. These covered with both entities. Mr. Slaten,feels that there is a common thread in the two agreements and it-is Jacobsen. As Staters takes them out of the 12.5 acres, the thought is if he is not in it what need does he have with the other properties. There are some benefits for all of the pain and suffering he did on the west side of the project. Mayor Pro Tem Garcia,stated that there has been discussion between a Councilmember and Staff and she has been left out of the loop. She wants to be supportive of the agreement but as it is written right now she is going to abstain. If people are willing to sit down and talk about how the City can give Stater Bros. some certainty she feels that she needs a lot more time to process this and digest it. She feels that the Staff is working with a Councilmember on the side and she doesn't like to be left out of the loop. Mayor Ferre, stated that she hears what Mayor Pro Tern Garcia is saying,however,there is Council Minutes 11/09/2010 Page 9 a huge background on this item and she put it-all together. All of that information much of it should have been read and already digested. Now it is all put together into a form that can be voted on. Every Councilmember has their own outlook,that's the democratic process. She feels that it is time to put it together and vote. Councilmember Stanckiewitz,stated that part,of his responsibility is to do his.homework in — those five days that they had to review the reports. He came to staff with his questions. He U was concerned with the fact that there was a split vote on the Planning Commission and he got a copy of the Planning Commission Meeting so that he could listen to it,as did all of the Councilmembers, so that he could follow,exactly how the process went down. He feels that they are the right people and is good with what they are doing and feels that it is going to be a successful project but for the sake of the community, if something happens,and the store isn't built in five years then the 1.2 million incentive from the Redevelopment Agency is off the table. That gives the City control and Stater Bros. guarantee. The two parcels are just so that the commitment to the community is that those two parcels are not going to be part of a commercial development,they are going to be used for public use. He feels that we can answer Staters by saying we are not going to put competing businesses on that land,that's not our intention. Mayor Pro Tern Garcia, questioned if the City Manager and Community and Economic Development Director said that those two sites could be used for Public Use. Councilmember Stanckiewitz, responded that it was his suggestion and he asked them to contact the two player to get their opinion as to whether that was something they would consider as a part of putting this together. Mayor Pro Tern Garcia, stated that she wants to be supportive of the two representatives, however,she does not feel comfortable voting on this tonight. She will abstained tonight and she is willing to have a special meeting to come back and vote on this item. She is uncomfortable with some of the things that Councilmember Stanckiewitz has said. She feels very strongly about the role of the Council. She feels that Council should not be cutting deals with developers. It is an internal issue. CC-2010-90 MOTION BY MAYOR FERRE, SECOND BY COUNCILMEMBER STANCKIEWITZ, FAILED 2-0-1-1 (COUNCILMEMBER CORTES WAS ABSENT AND MAYOR PRO TEM GARCIA ABSTAINED), to approve the Development Agreement - Jacobsen - An Ordinance Adopting Development Agreement 09-01 Applicable to Approximately 12.5 Acres of the Grand Terrace Town Square Master Development Plan with the approved suggestions that Councilmember Stanckiewitz brought forward. City Manager Betsy Adams, stated that if the Council were going to continue this item it Council Minutes 11/09/2010 Page 10 would have to be held on December 14, 2010. Mayor Pro Tem Garcia,questioned if there is any harm in waiting until the 14t"of December. City Manager Adams,stated that the building code changes substantially in the new calendar year. Council recently took action to adopt the new State Code effective January. She does not know if they were hoping to pull their building permits under the 2010 codes. Mayor Pro Tem Garcia,stated that this Developer Agreement is to give them certainty,why can't we just give them certainty without all of the extra stuff being thrown into the pot. She does not like when things come in at the last minute, especially when it looks as if Councilmember Stanckiewitz has been working with Staff and developer. Councilmember Stanckiewitz, stated that he takes his job seriously. He has this as an item that had to be acted on this evening. He made sure he did his homework and got his questions answered and his concerns raised. That is his job and he feels that he did job. Mayor Ferrd,feels that this is a critical item and she is very comfortable with the amount of time it has taken to get to this point and she is speaking for herself. She feels that this is a critical point and is concerned that we have shot ourselves in the foot. She stated that she is comfortable with staff and the players involved. She questioned what it would take to make Mayor Pro Tem Garcia comfortable to vote this evening. Mayor Pro Tem Garcia,responded to vote staff recommendations as is with no changes. She questioned if it is stated in the staff report that the project will be delayed if action is not taken this evening. Mayor Ferrd,responded that it would not say that in the Staff Report. Mayor Pro Tem Garcia,stated that she likes to look at each thing separately and she feels that she is being told since you voted for the last item, you have to vote on this item too. City Attorney Harper, stated that the project part is a done deal. You have already voted on that. The Development Agreement simply gives the developer some comfort level that the rules aren't going to change during the course of the building of the project. The project is a done deal and the approvals are done. The Development Agreement does not have any impact on the project one way or the other. Development Agreements are necessary to find financing because the bank has the same level of nervousness so they too want to have some certainty that they are going to be repaid. Mayor Pro Tem Garcia, stated that she understands the five years on the fees and the credit. She questioned the eight year land use. Council Minutes 11/09/2010 Page 11 City Attorney Harper, responded that the eight year is the underlying approvals, the things that you have already done,the City won't be able to change for eight years. The rules stay the same in terms of developing the project which you have already approved for the next eight year period. As a practical matter, the store will be built relatively quickly and he expects that the economy will come back sufficiently that the rest of the pads are going to be developed way before eight years runs out. He feels that this development agreement will become mute in probably 3 or 4 years. An eight year term on a development agreement is relatively short. Development Agreements are generally between 10 to 15 years and depending on the type of development up to 20. Mayor Pro Tem Garcia,stated that she understands that there are two 5 years extensions that go along with it. City Attorney Harper,responded that there are potentially two extensions,however,it is up to the Council. Mayor Pro Tem Garcia,questioned if the City Manager is comfortable that the City is in the drivers seat with this development agreement. City Manager Adams, responded that she will answer this with a little bit of a caviat. She I� felt comfortable but then the two items that Councilmember Stanckiewitz raised seems to give the City even more control. She stated that we are mixing two documents. The DDA would have to come to the Council for separate action. City Attorna Harper, stated that if Councilmember Stanckiewitz suggestions are included in the approval it would be language directing that the DDA come back to Council for approval with changes. City Manager Adams,feels that it would be in the City's best interest to pursue the changes that Councilmember Stanckiewitz mentioned but it would be separate action. Mayor Ferre clarified that the Council could approve the Development Agreement as it is with language in the motion that directs staff to prepare the necessary documents to amend the DDA. Mayor Pro Tem Garcia,questioned why Staff did not inform Council that the developers had been asked if they would amend the DDA. City Manager Adams, stated that Councilmember Stanckiewitz asked for some pretty significant amendments and she appreciates the fact that he didn't just spring it on Staff and the Developer and Stater's at the meeting tonight. It is not uncommon when talking to developers that Staff will go out and negotiate the best agreement that they think they can. Council Minutes 11/09/2010 Page 12 The reality is the Council has a lot more leverage than staff members because they are the elected representatives. Council may be able to ask for things that Staff may not be able to get them to agree on. City Attorney Harper,stated that he would like language in the agreement that would address having to bring back the DDA. This is an agreement that they would have to sign off on. City Manager Adams, stated that Councilmember Stanckiewitz had some concerns because there was a split vote. He heard the information,which was also in the staff report,and was looking at what other things can we ask so that we feel that there is more protection to the City. The two items that he asked for are not within the document that Council would vote on tonight. They are within the DDA. Mayor Pro Tem Garcia, questioned why they have to be tied in together this evening. City Attorney Harper, responded that because the Development Agreement gave the City leverage to do something which would not have happened otherwise. Mayor Pro Tem Garcia, questioned what the benefit is to the changes that Councilmember Stanckiewitz requested. Ci , Attorngy HgMer,responded that those two properties that are owned by the Agency are subject to the Development Agreement and all of the rules of the Development Agreement including the potential of having to sell it to the developer. The removal of those two properties from the DDA will allow the City flexibility to do what they want with the property. Mayor Pro Tem Garcia, questioned why Staff didn't think of that. City Attorney Harper, responded because it doesn't have anything to do with the Development Agreement. Mayor Pro Tem Garcia, she feels that it is very important to get things in writing. She questioned if staff is comfortable that they will agree with the added language in the Development Agreement. City Attorney Harper,stated that they can only sign what is approved by the Council. If they don't agree with the added language then it will have to come back to the Council. Mayor Pro Tem Garcia, stated that staff is saying that Stater Bros. is going to pull permits next week,however,this Ordinance requires a second reading and questioned how they can pull permits when it's not approved. Council Minutes 11/09/2010 Page 13 City Attorney Harper, stated that they are pulling grading permits, not a building permit. Community and Economic Development Director Powers, stated that the two other parties to the Agreement have already provided their signatures, if the Council approves the document as written. They wanted to know that the Council supported this before they pulled the grading permit. It is staffs understanding that they were not going to wait until r after the second reading. She proposed a suggestion that she would be willing to request the parties to provide a letter committing,to making changes to the Economic Development Agreement to cap the term at five years and to either terminate or modify the DDA to except out those parcels in separate actions to come back. Mayor Pro Tern Garcia, questioned that they can go ahead and pull the permit before the agreement has the second reading. City Attorngy Harper, responded that they have an approved project. Mayor Pro Tem Garcia, appreciates staff s recommendation of getting a letter prior to the second reading-and to separately move the item. City Attorney Harper, stated that they can do that but it wouldn't have the same binding effect. He stated that if the parties made a request and the Council approved documents J which affected those changes'prior to the second reading of the development agreement it might accomplish what Council wants. Community and Economic Development Director Powers, stated that what she was suggesting is that Staff get their written agreement in a letter form ,and then we would separately have to have a public hearing to modify the DDA because it's a disposition document. Mayor Pro Tern Garcia, questioned if everyone is confident that they will agree to what is on the agenda this evening including the changes that Councilmember Stanckiewitz brought up this evening. Mayor Ferre,responded that she is confident that they will do the right thing. She stated that she has felt that all along. Mayor Pro Tern Garcia, stated that she would like to hear the affirmative from the City Attorney, City Manager, Community Development Director and if they all say yes then she will support this. City Attorney Harper, responded that he has never discussed the subject with them. Council Minutes 11/09/2010 Page 14 City Manger Adams, responded that she is unsure either. City Attorney Harper,stated that if they put it in writing between now and the second reading then he believes that they will do it. Community and Economic Development Director Powers, stated that she contacted both parties involved and let them know that they should be prepared for some additional questions and their response to her was that they would be willing to do both of those items. Mayor Pro Tern Garcia, questioned if the City Manager was comfortable with the process that will take place. City Manager Adams,responded that we have to do it separate. She stated that the Council can take action to approve the Development Agreement this evening and further direct staff to obtain a letter confirming what was said earlier this evening so that it is available for the new Council when it is seated on December 14, 2010 to consider at the second reading. Once we receive that letter and assuming that the Development Agreement goes forward on the 14`'we can come back at a separate public hearing that will be well into the new calendar year. She feels that directionally it is more for the City than what was originally asked for. She feels that it could all work. CC-2010-91 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY MAYOR FERRE, CARRIED 3-0-1-0(COUNCILMEMBERCORTES WAS ABSENT),to approve the first reading of an Ordinance Adopting Development Agreement 09-0-1 Applicable to Approximately 12.5 Acres of the Grand Terrace Town Square Master Development Plan and to further direct Staff to get a letter from the parties related to the 1.2 million over five years and the two agency owned parcels to be removed from the DDA. UNFINISHED BUSINESS. 7A. Second Reading of an Ordinance of the City Council of the City of Grand Terrace California, Amending Title 15, of the City of Grand Terrace Municipal Code by Repealing and Replacing Chapters 15.08, 15.12, 15.16, 15.20,and Adding Chapters 15.10 and 15.17, Deleting Chapter 15.09, Adopting the California Code of Regulations to Include the Referenced Standards,Title 24,Part 2, and 12,Volumes 1 and 2,Based on the 2009 International Building Code,Part 2.5 Based on the 2009 International Residential Code,Part 3, Based on the 2008 National Electrical Code, Part 4,Based on the 2009 Uniform Mechanical Code,Part 5,Based on the Uniform Plumbing Code, Part 11, Green Building Standards CC-2010-92 MOTION BY COUNCILMEMBER STANCKIEWITZ, SECOND BY MAYOR PRO TEM GARCIA, CARRIED 3-0-1-0 (COUNCILMEMBER CORTES WAS Council Minutes 11/09/2010 Page 15 ABSENT), to approve the Second Reading of an Ordinance of the City Council of the City of Grand Terrace California, Amending Title 15, of the City of Grand Terrace Municipal Code by Repealing and Replacing Chapters 15.08, 15.12, 15.16, 15.20,and Adding Chapters 15.10 and 15.17,Deleting Chapter 15.09,Adopting the California Code of Regulations to Include the Referenced Standards, Title 24, Part 2,and 12,Volumes 1 and 2,Based on the 2009 International Building Code,Part 2.5 - 1 Based on the 2009International Residential Code,Part 3,Based on the 2008 National Electrical Code,Part 4,Based on the 2009Uniform Mechanical Code,Part 5,Based on the Uniform Plumbing Code, Part 11, Green Building Standards. NEW BUSINESS 8A. City Council Retiree Benefit for Herman Hilkey Herman Hilkey,23196 Glendora Drive, stated that because of the tax issues in the last year the benefits are taxed or not taxed. He questioned staff if he could submit for the medical which is non-taxed and staff suggested that he take this route. He stated that between the five Councilmembers at the time, it was your option to choose either health or medical. Depending on the persons employment or lack of employment they chose one or the other. He chose what he chose because of his circumstances at that time. The taxes have changed - and his employment has changed so that is why he has requested this. It is a slight tax advantage,it's not that big of deal. He has to pay taxes on the life and not the medical,that is the only issue. There was no action taken on this item. 8B. Request for a Reduction of the Parkland and Open Space Acquisition Fee for New Residential Construction Dale Chronister, 1171 North Second Street Colton, commended the Council on the great staff that the City has. He stated that he bought this property in 2002 when the economy was good. He has until the first of the year to get his building permit. He feels that the fees are too high. He stated that there has only been one building built in the past year and there hasn't been a custom home built in two years. Neighboring cities have built almost 600 homes. They have lower fees. He spoke to the school board and they have lowered their fees almost 25%. CC-2010-93 MOTION BY COUNCILMEMBER STANCKIEWITZ, SECOND BY MAYOR FERRE, CARRIED 3-0-1-0 (COUNCILMEMBER CORTES WAS ABSENT), to deny the request for a reduction of the Parkland and Open Space Development Impact Fee for construction of a new single-family residence. Council Minutes 11/09/2010 Page 16 CLOSED SESSION-None Mayor Ferre adjourned the meeting in memory of Jo Ann Carlstrom at 8:55 p.m.,until the next City Council Meeting which is scheduled to be held on Tuesday, December 14, 2010 at 7:30 p.m.. CITY CLERK of the City of Grand Terrace MAYOR of the City of Grand Terrace �.r�z3f�'r f �ALIFORNIA AGENDA REPORT MEETING DATE: December 14, 2010 Council Item (X) CRA Item ( ) TITLE: Re-Adopting the Standard Conflict of Interest Code PRESENTED BY: Brenda Mesa, City Clerk RECOMMENDATION: Adopt a resolution repealing Resolution No. 2000-32 and Re- adopting the standard Conflict of Interest Code BACKGROUND: The Political Reform Act requires every local government agency to review its conflict of interest code biennially to determine whether it 'is accurate, or alternatively, whether the code must be amended. If a change is necessitated, an amended code must be submitted to the City Council, as code reviewing body, for review and adoption. The Conflict of Interest Code designates positions required to file Statements of Economic f 1 Interests (Form 700), and assigns disclosure categories specifying the types of interests to be reported. Positions that involve making or participation in making governmental decisions which may have a material effect on any financial interest must be included in the code. The Form 700 is a public document intended to alert public officials and members of the public to the types of financial interests that may create conflicts of interests. Positions listed in Government Code Section 87200 (City Council Members, Planning Commissioners, City Manager and City Attorney) are not required to be included, because these positions automatically file Form 700. Adoption of the proposed resolution and the amended Conflict of Interest Code will ensure compliance with State law provisions. DISCUSSION: Recent reorganization has been considered in the proposed amendments to the code and is reflected in certain designated employees, which have either been added, deleted, changed departments or have had title changes. These changes are being proposed on the recommendation of the respective department heads. The recommended revisions to designated positions are as follows: • Assistant City Manager has been deleted COUNCIL AGENDA ITEM NO.`j P • Elimination of the Community Services department made it necessary to reassign positions and duties to other departments • Various titles have been adjusted Model Disclosure Categories have been used as provided by the Fair Political Practices Commission. A primary purpose of the code is to require disclosure of those types of investments, interests in real property, sources of income and business positions that designated positions may affect in their decision making. For example, a manager should be assigned full disclosure because the manager makes decisions that affect a wide range of interests. Alternatively, an employee who makes decisions in a limited capacity should be assigned disclosure of interests that relate to their duties. FISCAL IMPACT: None Respectfully submitted: Brenda Mesa, City Clerk Manager Approval: Betsy . Adams, City Manager ATTACHMENTS: Proposed resolution repealing Resolution No. 2000-32 and Readopting the standard Conflict of Interest Code with Exhibit A and B RESOLUTION NO. 2010- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, REPEALING RESOLUTION NO. 2000-32 AND RE-ADOPTING THE STANDARD CONFLICT OF INTEREST CODE WHEREAS, Government Code Section 87300 requires every agency to adopt and promulgate a conflict of interest code; and r WHEREAS, the Fair Political Practices Commission has adopted a Standard Conflict of Interest Code pursuant to the provisions of Article 2 of Chapter 7 of the Political Reform Act; and WHEREAS, it is further necessary to adopt certain categories of designated employees pursuant to said Standard Conflict of Interest Code; and WHEREAS, the City Council has previously duly approved and adopted a Conflict of Interest Code by reference to the standard model Conflict of Interest Code; and WHEREAS, said previously adopted Code should now be amended in respect to the designation of employees who are subject to the Code; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE does hereby resolve, declare determine, and order as follows: SECTION 1. The Political Reform Act, Government Code Section 81000, et seg., requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation,Title 2 California Code. of Regulations Section 18730, which contains the terms of a standard conflict of interest code. It can be incorporated by reference and may be amended by the Fair Political Practices Commission after public notice and hearings to conform to amendments in the Political Reform Act. Therefore, the terms of Title 2, Division 6, California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference and, along with the attached Appendix in which members and employees are designated and disclosure categories are set forth, constitute the conflict of interest code of the City of Grand Terrace. SECTION 2. Designated employees shall file their statements with the City Clerk who will make the statements available for public inspection and reproduction (Gov. Code Section 81008). Statements for all designated employees will be retained by the City of Grand Terrace. SECTION 3. The City's existing Conflict of Interest Code, Resolution No. 2000-32 is hereby repealed in its entirety. PASSED, APPROVED AND ADOPTED this 14th day of December, 2010. Resolution No. 2010- Page 2 Mayor of the City of Grand Terrace ATTEST: City Clerk of the City of Grand Terrace i I, BRENDA MESA, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No. 2010- was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 141h day of December, 2010, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Brenda Mesa, City Clerk Approved as to form: City Attorney APPENDIX "A" RESOLUTION NO. 2010- The following is a listing of positions for which the employee is required to submit Statements of Economic Interests (Form 700 Filers) pursuant to the Political Reform Act of 1974, as amended: CITY MANAGER'S DEPARTMENT DISCLOSURE CATEGORIES Assistant to the City Manager 4 CITY CLERK'S DEPARTMENT City Clerk 1 CHILD CARE SERVICES Director of Child Care Services 1 BUILDING & SAFETY/PUBLIC WORKS Director of Building, Safety & Public Works 1 Management Analyst 2 COMMUNITY & ECONOMIC DEVELOPMENT Community & Economic Development Director 1 Senior Planner 1 Management Analyst 2 Sr. Code Compliance Officer 2 Code Compliance Officer 2 FINANCE DEPARTMENT Finance Director 1 Sr. Account Technician 4 Account Clerk 4 Consultants* 1 * The City Manager may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as this conflict of interest code. APPENDIX "B" RESOLUTION NO. 2010- APPENDIX OF DISCLOSURE CATEGORIES CATEGORY 1. Full Disclosure - All interests in real property as well as investments, business positions and sources of income, including gifts, loans and travel payments. 2. Full Disclosure .(excluding interests in real property) - Investments and business positions and sources of income, including gifts, loans and travel payments. I 3. Interests in Real Property - Interests in real property located in the City, including property located within a two mile radius of any property owned or used by the City. 4. General Contracting - Investments, business positions and of income, including gifts, loans and travel payments from sources that provide leased facilities, goods, equipment,vehicles,machinery or services,including training or consulting services, of the type utilized by the city. (Regulations of the Fair Political Practices Commission, Title 2, Division 6, California Code of Regulations.) § 18730.Provisions of Conflict of Interest Codes. (a) Incorporation by reference of the terms of this regulation along with the designation of employees and the formulation of disclosure categories in the Appendix referred to below constitute the adoption and promulgation of a conflict of interest code within the meaning of Government Code section 87300 or the amendment of a conflict of interest code within the meaning of Government Code section 87306 if the terms of this regulation are substituted for terms of a conflict of interest code already in effect. A code so amended or adopted and promulgated requires the reporting of reportable items in a manner substantially equivalent to the requirements of article 2 of chapter 7 of the Political Reform Act, Government Code sections 81000, et seq. The requirements of a conflict of interest code are in addition to other requirements of the Political Reform Act, such as the general prohibition against conflicts of interest contained in Government Code section 87100, and to other state or local laws pertaining to conflicts of interest. (b)The terms of a conflict of interest code amended or adopted and promulgated pursuant to this regulation are as follows: (1) Section 1. Definitions. The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission(2 Cal. Code of Regs. sections 18110, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this conflict of interest code. (2) Section 2. Designated Employees. The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on economic interests. (3) Section 3. Disclosure Categories. This code does not establish any disclosure obligation for those designated employees who are also specified in Government Code section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their economic interests pursuant to article 2 of chapter 7 of the Political Reform Act, Government Code sections 87200, et seq. In addition, this code does not establish any disclosure obligation for any designated employees who are designated in a conflict of interest code for another agency, if all of the following apply: (A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency; (B) The disclosure assigned in the code of the other agency is the same as that required under article 2 of chapter 7 of the Political Reform Act, Government Code section 87200; and (C) The filing officer is the same for both agencies.1 Such persons are covered by this code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of economic interests are reportable. Such a designated employee shall disclose in his or her statement of economic interests those economic interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the economic interests set forth in a designated employee's disclosure,categories are the kinds ofeconomicinterests which he or she foreseeably can affect materially through the conduct of his or her office. (4) Section 4. Statements of Economic Interests: Place of Filing. The code reviewing body shall instruct all designated.employees within its code to file t` statements of economic interests with the agency or with the code reviewing body, as provided by the code reviewing body in the agency's conflict of interest code.2 (5) Section 5-Statements of Economic Interests: Time of Filing. (A) Initial Statements. All designated employees employed by the agency on the effective date.of this code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial `^ statement within 30 days after the effective date of the amendment. (B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed. (C) Annual Statements. All designated employees shall file statements no later than April 1. (D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office. (5.5) Section 5.5. Statements for Persons Who Resign Prior to Assuming Office. Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have-assumed office or left office, provided he or she did not make or participate in the making of, or use-his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or leaving office statement. (A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following: (1) File a written resignation with the appointing power; and (2) File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. (6) Section 6. Contents of and Period Covered by Statements of Economic Interests. (A) Contents of Initial Statements. Initial statements shall disclose any reportable investments, interests in real property and business positions.held on the effective date of the code and income received during the 12 months prior to the effective date of the code. (B) Contents of Assuming Office Statements. Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or, if subject to State Senate confirmation or appointment, on the date of nomination, and income received during the 12 months prior to the date of assuming office or the date of being appointed or nominated, respectively. (C) Contents of Annual Statements. Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee's first annual statement shall begin on the effective date of the code or the date of assuming office whichever is later, or for a board or commission member subject to Government Code section 87302.6, the ' day after the closing date of the most recent statement filed by the member pursuant to 2 Cal. Code Regs. section 18754. (D) Contents of Leaving Office Statements. Leaving office statements.shall disclose reportable investments, interests in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office. (7) Section 7. Manner of Reporting. dam) Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information: (A) Investment and Real Property Disclosure. When an investment or an interest in real property3-is required to be reported,4 the statement shall contain the following: 1. A statement of the nature of the investment or interest; 2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged; 3. The address or other precise location of the real property; 4 4 4. A statement whether the fair market value of the investment or interest in real property equals or exceeds two thousand dollars ($2,000), exceeds ten thousand dollars ($10,000), exceeds one hundred thousand dollars ($100,000),or exceeds one million dollars ($1,000,000). (B) Personal Income Disclosure. When personal income is required to be reported,5 the statement shall contain: 1. The name and address of each source of income aggregating five hundred dollars ($500) or more in value, or fifty dollars($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source; 2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source,was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), greater than ten thousand dollars ($10,000), or greater than one hundred thousand dollars ($100,000); 3. A description of the consideration, if any, for which the income was received; 4. In the case of a gift,the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received; 5. In the case of a loan, the annual interest rate and the security, if any, given for the loan and the term of the loan. (C) Business Entity Income Disclosure. When income of a business entity, including income of a sole proprietorship, is required to be reported,6 the statement shall contain: 1. The name, address, and-a general description of the business activity of the business entity; 2. The name of every person from whom the business entity received payments if the filer's pro rata share of gross receipts from such person was equal-to or greater than ten thousand dollars ($10,000). (D) Business Position Disclosure. When business positions are required to be reported, a r designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee; or in which he or she holds any,position of management, a description of the business activity in which the business entity is engaged, and the designated employee's position with the business entity. (E)Acquisition or Disposal During Reporting Period. In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during,the period covered by the statement, the statement shall contain the date of acquisition or disposal. (8) Section 8. Prohibition on Receipt of Honoraria. (A)No member of a state board or commission, and no designated employee of a state or local government agency, shall accept any honorarium from any source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part-time member of the governing board of any public institution of higher education, unless the member is also an elected official. Subdivisions (a), (b), and(c)of Government Code Section 89501 shall apply to-the prohibitions in this section. This section shall not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence authorized by Government Code section 89506. A'1 (8.1) Section 8.1. Prohibition on Receipt of Gifts in Excess of$420. (A)No member of a state board or commission, and no designated employee of a state or local government agency, shall accept gifts with a total value of more than$420 in a calendar year from any single source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part-time member of the governing,board of any public institution of higher education, unless the member is also an elected official. Subdivisions (e), (f), and(g)of Government Code section 89503 shall apply to the prohibitions in this section. (8.2) Section 8.2. Loans to Public Officials. (A)No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the elected officer holds office or over which the elected officer's agency has direction and control. (B),No public official who is exempt from the state civil service system pursuant to subdivisions(c), (d), (e), (0, and(g)of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal.loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official's agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (C)No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from 1 any person who has a contract with the state or Jocal government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made,by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to s members of the public without regard to the elected officer's official status. (D)No public official who is exempt from the state civil service system pursuant to subdivisions(c), (d), (e), (f), and(g) of Section 4 of Article VII of the Constitution shall,,while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected.or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to .the elected officer's official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (E)This section shall not apply to the following: 1. Loans made to the campaign committee of an elected officer or candidate for elective office. 2. Loans made by a public official's spouse, child, parent, grandparent,.grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew; niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans from a person which, in the aggregate, do not exceed five hundred dollars ($500) at any given time. 4. Loans made, or offered in writing, before January 1, 1998. (8.3) Section 8.3. Loan Terms. (A) Except as set forth in subdivision(B), no elected officer of a state or local government agency shall, from the date of his or her election to office through the date he or she _ vacates office, receive a personal loan of five hundred dollars ($500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. (B) This section shall not apply to the following types of loans: 1. Loans made to the campaign committee of the elected officer. 2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans made, or offered in writing, before January 1, 1998. (C) Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code. (8.4) Section 8.4. Personal Loans. (A) Except as set forth in subdivision(B), a personal loan received by any designated employee shall become a gift to the designated employee for the purposes of this section in the following circumstances: 1. If the loan has a defined date or dates*for repayment, when the statute of limitations for filing an action for default has expired. 2. If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following: a. The date the loan was made. b. The date the last payment of one hundred dollars ($100) or more was made on the loan. c. The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months. (B) This section shall not apply to the following types of loans: 1. A loan made to the campaign committee of an elected officer or a candidate for elective office. 2. A loan that would otherwise not be a gift as defined in this title. 3. A loan that would otherwise be a gift as set forth under subdivision(A), but on which the creditor has taken reasonable action to collect the balance due. 4. A loan that would otherwise be a gift as set forth under subdivision(A), but on which the creditor,based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations. 17 5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy. (C)Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code. (9) Section 9. Disqualification. No designated employee shall make, participate in making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of his or her immediate family or on: (A) Any business entity in which the designated employee has a direct or indirect investment worth two thousand dollars($2,000)or more; (B) Any real property in which the designated employee has a direct or indirect interest worth two thousand dollars ($2,000)or more; (C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating five hundred dollars ($500) or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made; (D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or 1� (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $420 or more provided to, received by, or promised to the designated employee within 12 months prior to the time when the decision is made. (9.3) Section 9.3. Legally Required Participation. No designated employee shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. The fact that the vote of a designated employee who is on a voting body is needed to break a tie does not make his or her participation legally required for purposes of this.section. (9.5) Section 9.5. Disqualification of State Officers and Employees. In addition to the general disqualification provisions of section 9, no state administrative official shall make, participate in making, or use his or her official position to influence any governmental decision directly relating to any contract where the state administrative official r knows or has reason to know that any party to the contract is a person with whom.the state administrative official, or any member of his or her immediate family has, within 12 months prior to the time when the official action is to be taken: (A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms-not available to members of the public regarding the rendering of goods or services totaling in value one thousand dollars ($1,000)or more. (10) Section 10. Disclosure of Disqualifying Interest. r When a designated employee determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act may be accompanied by disclosure of the disqualifying interest. (11) Section 11. Assistance of the Commission and Counsel. Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Government Code section 83114 and 2 Cal. Code Regs. sections 18329 and 18329.5 or from the attorney for his or her agency,provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion. (12) Section 12. Violations. This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal and civil sanctions provided in the Political Reform Act, Government Code sections 81000-91014. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of Government Code section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code section 91003. 1 Designated employees who are required to file statements of economic interests under any other agency's conflict of interest code, or under article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and distinct statements, provided that each copy of such expanded statement filed in place of an original is signed and �r verified by the designated employee as if it were an original. See Government Code section 81004. 2See Government Code section 81010 and 2 Cal. Code of Regs. section 18115 for the duties of filing officers and persons in agencies who make.and retain copies of statements and forward the originals to the filing officer. 317or the purpose of disclosure only(not disqualification), an interest in real property does not include the principal residence of the filer. 4Investments and interests in real property which have a fair market value of less than$2,000 are not investments and interests in real property within the meaning of the Political Reform Act. However, investments or interests in real property of an individual include those held by the individual's spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 5A designated employee's income includes his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency. 6Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the filer's spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer. Note: Authority cited: Section 83112, Government Code. Reference: Sections 87103(e), 87300- 87302, 89501, 89502 and 89503, Government Code. HISTORY 1. New section filed 4-2-80 as an emergency; effective upon filing (Register 80,No. 14). Certificate of Compliance included. 2. Editorial correction(Register 80,No. 29). 3. Amendment of subsection(b) filed 1-9-81; effective thirtieth day thereafter (Register 81,No.2). 4. Amendment of subsection(b)(7)(B)1. filed 1-26-83; effective thirtieth day thereafter (Register 83, No. 5). 5. Amendment of subsection(b)(7)(A) filed 11-10-83; effective thirtieth day thereafter (Register 83, No. 46). 6. Amendment filed 4-13-87; operative 5-13-87 (Register 87, No. 16). 7. Amendment of subsection(b) filed 10-21-88; operative 11-20-88 (Register 88, No. 46). 8. Amendment of subsections (b)(8)(A) and(b)(8)(B) and numerous editorial changes filed 8-28-90; operative 9-27-90 (Reg. 90,No. 42). 9. Amendment of subsections (b)(3), (b)(8) and renumbering of following subsections and amendment of Note filed 8-7-92; operative 9-7-92 (Register 92, No. 32). 10. Amendment of subsection(b)(5.5) and new subsections (b)(5.5)(A)-(A)(2) filed 2-4-93; operative 2-4-93 (Register 93, No. 6). 11. Change without regulatory effect adopting Conflict of Interest Code for California Mental Health Planning Council filed 11-22-93 pursuant to title1, section 100, California Code of Regulations (Register 93, No. 48). Approved by Fair Political Practices Commission 9-21-93. 12. Change without regulatory effect redesignating Conflict of Interest Code for California Mental Health Planning Council as chapter 62, section 55100 filed 1-4-94 pursuant to title 1, section 100, California Code of Regulations (Register 94,No. 1). 13. Editorial correction adding Historyl 1 ,and 12 and deleting duplicate section number (Register 94,No. 17). r 14. Amendment of subsection(b)(8), designation of subsection(b)(8)(A), new subsection (b)(8)(B), and amendment of subsections (b)(8.1)-(b)(8.1)(B), (b)(9)(E) and Note filed 3-14-95; operative 3-14-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 11). 15. Editorial correction inserting inadvertently omitted language in footnote 4 (Register 96, No. 13). ' 16. Amendment of subsections (b)(8)(A)-(B) and(b)(8.1)(A),repealer of subsection(b)(8.1)(B), and amendment of subsection(b)(12) filed 10-23-96; operative 10-23-96 pursuant to Government Code section 11343.4(d) (Register-96, No. 43). 17. Amendment of subsections (b)(8.1) and(9)(E) filed 4-9-97; operative 4-9-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 15). 18. Amendment of subsections (b)(7)(B)5., new subsections (b)(8.2)-(b)(8.4)(C) and amendment of Note filed 8-24-98; operative 8-24-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 35). 19. Editorial correction of subsection(a) (Register 98, No. 47). 20. Amendment of subsections (b)(8.1), (b)(8.1)(A) and(b)(9)(E) filed 5-11-99; operative 5-11-99 pursuant to Government Code section 11343.4(d) (Register 99, No. 20). 21. Amendment of subsections (b)(8.1)-(b)(8.1)(A) and(b)(9)(E) filed 12-6-2000; operative 1-1-2001 pursuant to the 1974 version of Government Codesection 11380.2 and Title 2, California Code of Regulations, section 18312(d) and(e) (Register 2000,No. 49). 22. Amendment of subsections (b)(3) and(b)(10) filed 1-10-2001; operative 2-1-2001. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2001,No. 2). 23. Amendment of subsections (b)(7)(A)4., (b)(7)(B)L-2., (b)(8.2)(E)3., (b)(9)(A)-(C) and footnote 4 filed 2-13-2001. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2001,No. 7). 24. Amendment of subsections (b)(8.1)-(b)(8.1)(A) filed 1-16-2003; operative 1-1-2003. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil CO10924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27'. 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2003,No. 3). 25. Editorial correction of History24 (Register 2003, No. 12). 26. Editorial correction removing extraneous phrase in subsection(b)(9.5)(B) (Register 2004,No. 33). 27. Amendment of subsections (b)(2)-(3), (b)(3)(C), (b)(6)(C), (b)(8.1)-(b)(8.1)(A), (b)(9)(E) and (b)(11)-(12) filed 1-4-2005; operative 1-1-2005 pursuant to Government Code section 11343.4 (Register 2005, No. 1). 28. Amendment of subsection(b)(7)(A)4. filed 10-11-2005; operative 11-10-2005 (Register 2005, No. 41). 29. Amendment of subsections (a), (b)(1), (b)(3), (b)(8.1), (b)(8.1)(A) and(b)(9)(E) filed 12-18-2006; operative 1-1-2007. Submitted to OAL pursuant to Fair Political Practices Commission v. Office ofAdministrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2006,No. 51). 30. Amendment of subsections (b)(8.1)-(b)(8.1)(A) and(b)(9)(E) filed 10-31-2008; operative 11-30-2008. Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office ofAdministrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2008,No. 44). -A _ 1 iALIFORNI,� AGENDA REPORT MEETING DATE: December 14, 2010 Council Item (X) CRA Item ( ) TITLE: Measure I, Capital Improvement Plan. PRESENTED BY: Richard.Shields, Director of Building and Safety/Public Works RECOMMENDATION: 1. Approve the Five Year Measure I Capital Improvement Plan and Expenditure Strategy for 2010 through 2014. 2. Adopt Resolution No. 2010- , , setting forth a Five Year Capital Improvement Program,. BACKGROUND: Each year the City of Grand Terrace is required by San Bernardino Associated Governments (SANBAG) to adopt a Measure I Capital Improvement Plan by resolution. The reason this is done each year is due to project needs changing throughout the year. SANBAG provides a yearly opportunity to change the expenditures and project designations to meet the needs of the jurisdiction. Measure ] was overwhelmingly approved by the San Bernardino County voters in 1994 and then approved for reauthorization by,the voters in 2004. Under Measure I, SANBAG, ,acting as, the 'San Bernardino County Transportation Authority, is authorized to impose a one-half of one-percent retail transactions and use tax applicable in the incorporated and unincorporated territory of the County of San Bernardino. These funds are used for the Measure I expenditure plan which calls for 20% of the revenues to be distributed to local jurisdictions for local street projects. Allocation of these funds is done on a per capita basis to San Bernardino County jurisdictions. To be eligible to receive Local Street Project Funds, jurisdictions must submit a five-year capital improvement,plan to SANBAG. COUNCIL AGENDA ITEM NO3 Another 20% of the Measure I revenues are allocated to local jurisdictions for Major Street Projects. These are projects which local jurisdictions have agreed to partially fund by adoption of a circulation mitigation fee program. In September of this year, City Council approved a request to start funding the widening of Michigan Street from the Measure I Major Streets program. This is further defined as the 2010-2015 Capital Projects Needs Analysis, CPNA. DISCUSSION: City Council is being requested to approve a resolution for funding of the City's Measure I Local Streets Program. These funds will primarily be used for street maintenance and rehabilitation projects. SANBAG's estimate of Measure I revenue for 2010-201.4 is _ attached as Exhibit"A", and totals $730,690.00. Five (5) street paving projects have been chosen which are listed in the Proposed Measure. I Five Year Plan, see Exhibit "B". The street surfaces chosen for repaving have substandard surfaces that need to be repaired. The paving process will involve. the streets being repaved with 2 inches of,new asphalt. The City entered into a cooperative agreement with San Bernardino County and the City of Colton on June 7, 2006 to install a new signal light at the intersection of La Cadena and Barton Road located in the City of Colton, San Bernardino County Agreement No., 04-843. The City agreed to pay $70,000.00 toward the signal improvement project to help relieve traffic congestion on La Cadena and Barton,Road. The total cost of the traffic signal project was $390,522.94. The project was completed in fiscal year 2007. The City of Colton did not send a request for payment until November of this year. To - date, the City's $70,000.00 share has not been appropriated for this project. Therefore, Staff has contacted SANBAG to see if this project would be eligible for Measure I funds. SANBAG agreed that the project could be added to the proposed Measure I five year plan shown in Exhibit"B". FISCAL IMPACT: The attached Five Year Measure I, Capital Improvement Plan for 2010 through 2014 identifies six (6) projects at an estimated total cost of $724,331.00. Funding for these projects will be from the Measure I Local Streets Program. Res ctfully subrriitt Ri hard Shields, Director of Building and Safety/Public Works, Manager Approval: Betsy Adams, City Manager ATTACHMENTS: Draft Measure I Revenue Estimate, Exhibit"A" Draft Measure I Capital Improvement Plan for Local Streets Program, Exhibit "B" Resolution No. 2010- Exhibit "A" VALLEY REGION MEASURE I REVENUE ESTIMATES FOR LOCAL PASS-THROUGH FUNDS 2010-2015 FY 09-10 FY 10-11 FY 11-12 FY 12.13 FY 13-14 FY 14-15 FY 10.15 Estimated Growth Rates JURISDICTION Actual Estimate Estimate Estimate Estimate Estimate Total Estimate Over Previous Year VALLEY REGION Chino 939,827 949,226 963,464 982,733 1,007,302 1.032,484 4,935,209 FY 10/11 1.00% Chino Hills 877,631 . 886,407 899.703 917.698 940,640 964,156 4,608.604 Colton 576.111 581,872 590.601 602,413 617,473 632.910 3,025,268 FY 11/12 1.50% Fontana 2.108.112 2,129,193 2,161,131 2,204,353 2.259,462 2,315,949 11.070,087 Grand Terrace 139.148 140,539 142.647 145,500 149,138 152,866 730,690 FY 12/13 2.00% Highland 583.861 589,699 598,645 610,516 625,778 641,423 3,065,960 Loma Linda 252,208 254,730 258.551 263,722 270,315 277,073 1,324,392 FY 13114 2.50% Montclair 412,124 416,245 422,489 430.938 441.712 452,755 2.164,139 Ontario 1,930,703 1,950,011 1,979,261 2,018,846 2.069,317 2,121.060 10,138.464 FY 14/15 2.50% Rancho Cucamonga 1.984.737 2,004,584 2.034,653 2,075,346 2,127,230 2,180,410 10,422,223 Redlands 798.741 806,729 818.829 835,206 856,086 877,488 4,194,338 Rialto 1.115.502 1.126,657 1.143,556 1,166,428 1,195,588 1,225,478 5,857.707 San Bernardino 2.279,222 2,302,014 2,336.544 2.383.275 2,442,857 2,503,928 11,968,619 Upland 836,588 844,954 857.628 874,781 896,651 919,067 4,393,081 Yucaipa 571.571 577,287 585,947 597,666 612,607 627.922 3,001,428 County/Valley 1.289.689 1,302,586 1,322,125 1,348,567 1,382,281 1,416,838 6,772,398 Total ValleX Region $16.695,775 $16,862,733 $17,115,674 $17,457,987 $17,894,437 $18,341,798 87,672,629 FY 10-11 thru FY 14-15 reflects the Measure 12010-2040 distribution change to 20%for Local Street Projects. MIAE0915-EMPALS �f Exhibit", `ir City of Grand Terrace Proposed Measure I Five Year Plan 2010/2014 Year Location Improvement Cost Estimate 2010 Pico Street _ Pavement overlay $70,000 _ 2010 Barton at La C ddena Traffic Signal* $70,000 _ 2011 Robin_Way and Warbler Avenue Pavement overla $142,000 2012 Glendora Street and Monona Street Pavement overlay $145,000 2013 DeBerry Street Mount Vernon to Observation Pavement overlay $145,000 2014 DeBerry Street Mount Vernon to Michigan Pavement overlay $152,000 _ __Total $724,000 Me_asure_I Revenue Estimate(five years) $700,000 _ ______ Available Fund Balance $24,331 _ Total Available $724,331 Reimbursement to Colton per coop. agreement. n RESOLUTION NO. 2010- A RESOLUTION OF THE CITY OF GRAND TERRACE, STATE OF CALIFORNIA, ADOPTING THE FIVE YEAR CAPITAL IMPROVEMENT PROGRAM WHEREAS, San Bernardino County voters approved passage of Measure 1 1990-2010 in November 1989 and renewed as Measure 1 2010-2040 in November 2004 authorizing San Bernardino Associated Governments, acting as the San Bernardino County Transportation Authority, to impose a one-half of one percent retail transactions and use tax applicable in the incorporated and unincorporated territory of the County of San Bernardino, and WHEREAS, revenue from the tax can only be used for transportation improvement and traffic management programs authorized in the Expenditure Plans set forth in Ordinance No. 89-1 of the Authority, and WHEREAS, Expenditure Plans of the Ordinance require each local jurisdiction receiving revenue from the tax to expend those funds pursuant to a Capital Improvement Program adopted by resolution of the local jurisdiction, and WHEREAS, Expenditure Plans of the Ordinance also require that each local jurisdiction annually adopt and update its Capital Improvement Plan, NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Grand Terrace, State of California, hereby adopts the Measure I Five Year Capital Improvement Program, a copy of which is attached to this Resolution. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 14th, day of December, 2010. MAYOR ATTEST: CITY CLERK Attachment: Proposed Measure I Five Year Plan 2010-2014. n >)kt .P.c AGENDA REPORT MEETING DATE: December 14, 2010 Council Item (X) CRA Item ( ) TITLE: Notice of Completion, Grand Terrace Road Landscaping Project. PRESENTED BY: Richard Shields, Director of Building and Safety/Public Works RECOMMENDATION: 1. Accept the Grand Terrace Road Improvements as complete. 2. Direct the City Manager and Public Works Director to prepare and sign a Notice of Completion for the landscape work performed on Grand Terrace Road. 3. Direct the City Clerk's office to record the Notice of Completion with the San Bernardino County Recorder's Office. BACKGROUND: As part of an overall neighborhood improvement project, Staff obtained construction bids to install irrigation and landscaping at the northwest corner of Grand Terrace Road and Barton Road adjacent to the Grand Terrace Mobile Home Park at 21845 Grand Terrace Road. The landscaping and irrigation project was the first phase of public infrastructure improvements, which also included reconstruction of Grand Terrace Road. DISCUSSION: Landscape and irrigation plans and specifications were prepared and invitations to bid were advertised in the local newspaper paper and the Dodge Room. On June 22, 2010, City Council awarded GTB 10-03 to EZ Sunnyday Landscaping and appropriated $41,230.70 of CRA funds to complete the landscaping project. COUNCIL AGENDA ITEM NO. A The landscape and irrigation at Grand Terrace Mobile Home Park has been completed. The work has been inspected and complies with the approved plans. FISCAL IMPACT: Funds in the amount of $41,230.70 have been appropriated in the CRA undesignated available fund balance. EZ Sunnyday Landscape completed the project and has submitted a final invoice for payment to the City in the amount of $37,675.00 for work performed on the project. Respectfully submitted, 6 --'Zo.��ne�L- Ri hard Shields Director of Building and Safety/Public Works Manager Approval: ` n Betsy dams City Manager ATTACHMENT: Notice of Completion RECORDING REQUESTED BY: I CITY OF GRAND TERRACE WHEN RECORDED MAIL TO: CITY OF GRAND TERRACE 22795 BARTON ROAD GRAND TERRACE, CA 92313 ATTENTION: SPACE ABOVE THIS LINE FOR RECORDER'S USE NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed withu[ 10 days after completion. Notice is hereby given that: 1. T'ne undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2. The full name of the owner is City of t=ranA morrace 3, The full address of the owner is 22795 Barton Road Grand Terrace CA 92313 4, The nature if the interest or estate of the owner is;In fee, (If other than fee, strike 'In fee" and insert, for example, "purchaser under contract of purchase," or "lease") 5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants in common are: NAMES ADDRESSES 6. A work of improvement on the property hereinafter described was completed on 10-1�. The work done was: ondsranp rov nts to'portions of Grand Terrace''Road 7, The name of the contractor, if any, for such work of improvement was EZ Stutny �Lan c �e Jane 22 2010 _ (If no contractor for work of improvements as a whole, insert "none") (Date of Contract) S. The property on which said work of improvement was completed is in the City of Grand TexTace County of San Bernarriino State of California, and is described as follows: Portions of (;rand Tarraro Rood 9. The street address of said property is none (if no street address has been officially assi ed, Dated: Sign, ure of owner or corporate officer of owner named in paragraph 2 of his agent VERIFICATION I,the undersigned,say; I am the Manager of the declarant of the to-going notice of completion; ("President of", "Manager of', 'Owner of", etc. I have read said notice of completion and know the contents thereof; the same is true of my own knowledge. I declare under pen..lty of perjury that the foregoing is true and correct, 3zxuted on "�C 2010 a[ Grand Terrace (Date of s;nanarc) ,City whtrt Ji ncd) ,Personal signature of the individual who is swearing that the cement;of the notice of completion are true.) AOL AGENDA REPORT MEETING DATE: December 14, 2010 Council Item (X) CRA Item ( ) TITLE: Notice of Completion, Grand Terrace Road Reconstruction Project. PRESENTED BY: Richard Shields, Director of Building and Safety/Public Works RECOMMENDATION: 1. Accept the Grand Terrace Road Reconstruction Improvements as complete. 2. Direct the City Manager and Public Works Director to prepare and sign a Notice of Completion for the work I' performed on Grand Terrace Road. 3. Direct the City Clerk's office to record the Notice of Completion with the San Bernardino County Recorder's Office. , BACKGROUND: Riverside Public Utilities installed a 48 inch water line underground in Grand Terrace Road. While installing the new water line, it was noticed that the street did not have a compacted structural section under the existing asphalt. This condition would lead to problems if new asphalt pavement was applied. As part of an overall neighborhood improvement project in this area, Staff obtained construction bids to reconstruct Grand Terrace Road from Barton Road to Vivienda Avenue. The road reconstruction was the second phase of public infrastructure improvements. COUNCIL AGENDA ITEM NO. DISCUSSION: Plans and specifications were prepared and invitations to bid were advertised in the local newspaper paper and the Dodge Room. On July 13, 2010, City Council awarded GTB 10-02 to Palm Canyon Contractors and appropriated $266,040.50 of CRA funds to complete the project. The Street improvements on Grand Terrace Road have been completed. The work has been inspected and complies with the approved plans. FISCAL IMPACT: r Reimbursement from the City of Riverside and CDBG Funds total $192,469.00. After all reimbursements are obtained, the total cost of the project to the Agency's non-housing funds (without the use of contingency funds) will be $52,534.00 for construction, and $34,628.00 for project management. Respectfully submitted, Ri hard Shields Director of Building and Safety/Public Works Manager Approval: Betsy Adams City Manager ATTACHMENTS: Notice of Completion RECORDING REQUESTED BY: CITY OF GRAND TERRACE WHEN RECORDED I4AIL TO: CITY OF GRAND TERRACE 22795 BARTON ROAD GRAND TERRACE, CA 92.313 ATTENTION: NOrr SPACE ABOVE THIS LINE FOR RECORDER'S USE ICE OF COMPLETION Notice pursuant to Ci%it Code Section 3093, must be filed within 10 days after completion. Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2, The full name of the owner is City of and Terrace 3. The full address of the owner is 22795 Barton Road Grand Terrace CA 92313 4. The nature if the interest or estate of the owner is; In fee. (If other than fee, strike"In fee" and insert, for example, 'purchaser under contract of purchase," or "lease") 5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants in common are: NAMES ADDRESSES 6. A work of improvement on the property hereinafter described was completed on 11-23-2010 . Tile work done was. Gtrrpt T Grand Terrace Road between Barton Road and Vivienda Avenue 7. The name of the contractor, if any, for such work of improverucat was Palm Canvon Contractors (If no contractor for work of improvements as a whole, insert "none") ` 13 2010 (Date of Contract) 8. The property on which said work of improvement was completed is in the City of Grand Terrace County of SdD 17urn--dim , State of California and is described as follows: , Grand Terrace Road Viyi euda AV rmn 9. The street address of said property is none (If no street address has been officially assi ed, insert "non Dated: Sig ture of owner or corporate officer of owner named in paragraph 2 of his agent VERIFICATION 1, the undersigned,say: I am the Manager of — the declarant of the fereg,.ind notice o(cumplcoun, ("President of", "Manager of", "owner of", etc. I have read said notice of completion anti know the contents thereof; the same is true of my Own knowledge I declare under penetty of perjury that the foregoing is true and correct. rzecuted on �¢ 2010 at ty CaIIr�,rn:A. mate of :igr.;uure) , Ci �tiure s�,ncd) !Personal signature of the mdi:idual oho is sv:eanng th::t t!,•: r,ntcnts of lire notice of completion are true) AGEND A REPORT MEETING DATE: December 14, 2010 Council Item(X) CRA Item ( ) TITLE: STATE COPS SLESF GRANT-FY 2010-11 Expenditure Plan PRESENTED BY: Bernie Simon, Finance Director RECON MENDATION: Approve FY 2010-11 COPS SLESF Grant Expenditure Plan BACKGROUND: Agencies receiving SLESF money must have a formal expenditure plan approved by the governing body. The agency must then report how such funds were spent in comparison to the approved spending plan at the end of the fiscal year. In accordance with Section 30061 of the Government Code: "Any request submitted pursuant to this paragraph shall specify the frontline law enforcement a needs of the requesting entity, and those personnel, equipment, and programs that are necessary to meet those needs. The board shall, at a public hearing held at a time determined by the board in each year that the Legislature appropriates funds for purposes of this chapter, or within 30 days after a request by a recipient agency for a hearing if the funds have been received by the county from the state prior to that request, consider and determine each submitted request within 60 days of receipt, pursuant to the decision of a majority of a quorum present." The FY 2010-11 budget document accounts for the anticipated Supplemental Law Enforcement Safety Fund(SLESF AB3229 COPS)in Fund 14 on page 143. DISCUSSION: The proposed spending plan is similar to the previous yeais' spending plan. The estimated FY 2010-11 grant revenue is $100,000 which pays for all or part of: Sheriffs Department special services officer(SSO) and related costs $ 68,270 One General Law Patrol Car-partial contract costs including fuel and maintenance, indirect and overhead costs $ 31,230 Grand Terrace overhead cost allocation 500 $100,000 COUNCIL AGENDA 1TEll�ll NO.3H A Our approved expenditure plan is due to the County December 3, 2010. However, the budget approval notice was not received in time to bring this issue to the November meeting. The Auditor-Controller will release funds after the Supplemental Law Enforcement Oversight Committee certifies receipt of all recipient agencies' approved,plans. For fiscal year 2010-11, only the grant amount of$100,000 is shown in and accounted for in the SLESF Fund (14). Traffic Safety Funds (17) are no longer available to offset the law enforcement costs because the majority of the fine revenue is now used to pay the red-light camera contractor. Therefore, the General Fund is now picking up a larger share of law enforcement contract costs. FISCAL IMPACT: None by this action. Funds are already budgeted for FY 2010-11. Respectfully submitted, Bernie Simon Finance Director Manager Approval: ; /r � `� Betsy . Adams City Manager ATTACHMENTS: 1) Oct. 18, 2010-DOF SLESF allocation letter 2) SLESF—Budget ANT O� C nun 2 ul III n o DEPARTMENT OF ARNOLO 9CHWARZENEGrr6R GOVERNOR C,f.w, ~o'F I N AN C E STATQ CAPITOL■ROOM 1 145■9ACAAM<MTO CA■951314-4996■WWW.00r.0A.00V OF"CK OF THE DIRECTOR October 18, 2010 The Local Safety and Protection Account(LSPA) in the Transportation Fund is anticipated to receive$365 million in revenues in 2010-11. Based on the formulas contained in Government Code Section 30061, the Department of Finance (Finance)estimates a total of$188.086 million in LSPA revenues will be,availablefor purposes of the Citizens' Option for Public Safety (COPS) program and the Juvenile Justice Crime Prevention Act(JJCPA) program. t Pursuant to Government Code Section 30061, Finance estimates the COPS and JJCPA programs will each receive$94.043 million. In addition, Chapter 158, Statutes of 2003, authorizes up to $275,000 from the juvenile justice allocation to be available to the Corrections Standards Authority for administrative purposes. Pursuant to current law,the State Controller is required to allocate the COPS and JJCPA funds to each county that has established a Supplemental Law Enforcement Services Fund (SLESF) in accordance with Section 30061 of the Government Code, and in accordance with the proportionate share of the state's total population that resides in each county and city and county. The Controller is required to make all disbursements upon request of-an individual county and city and county that has established a SLESF, and has established an oversight committee pursuant to Section 30064 of the Government Code. Current law requires the county auditor to allocate moneys to.the county's SLESF, including any interest or other return earned on the investment of those moneys, within 30 days of the deposit of those moneys in accordance with the following requirements: 1. 5.15 percent to the county sheriff for county.jail construction and operation. 2. 5.15 percent to the district attorney for criminal prosecution. 3. 39.7 percent to the county and the cities within the county in accordance with the relative population for the cities within the county and the unincorporated area of the county. Accordingly, a population estimate for your county is enclosed and a listing of allocations for each eligible entity. The population estimate is based on the January 1, 2010 estimate by the Population Research Unit of the Department of Finance, as required by Section 30061 of the Government Code. 4. 50 percent to the county or city and county to implement a comprehensive multi-agency juvenile justice plan, as specified. These funds are intended to cover the cost of approved plan activities from October 1, 2010 through September 30, 2011. -2- The attached allocations reflect the$188.086 million provided in the Budget Act allocated into the four categories above, based on the percentages in statute(i.e. 21.30 percent of total anticipated LSPA revenues for COPS, and an additional 21.30 percent of LSPA revenues for JJCPA). Within each category allocations are based on population, as required by statute. For the 39.7 percent,front-line law enforcement category, the allocations also reflect a minimum grant of$100,000. Therefore, entities that would have received less than$100,000 based on the population distribution formula were provided additional amounts while entities that received more than $100,000 were adjusted proportionately downward, so the total amount allocated is $74.670 million. The amounts distributed to each city within the county and to the county for the ti unincorporated population were summed to determine front-line law enforcement totals provided to each county for allocation to the cities within the county. Please note that legislation enacted concurrent with the 2009 Budget Act now requires that COPS/JJCPA payments be distributed in four equal installments beginning October 1. Consequently,you will not receive a lump-sum payment as in previous years. We have attached information showing how the anticipated 2010-11 COPS/JJCPA moneys are to be allocated. The allocations should be made in four installments. If the VLF revenues deposited in the LSPA are either greater than or less than $365 million, the COPS/JJCPA allocations will be adjusted on a pro-rated basis. After allocation of funds to each county's SLESF for the juvenile justice program,the SLESF shall only allocate funding for the juvenile justice program after the juvenile justice plan has: (1) been approved by the county board of supervisors, and in the case of a city and county, the plan has been approved by the mayor, and (2)the plan has been submitted to the Corrections Standards Authority and notification from the Authority has been received indicating approval. For questions regarding the COPS program and the allocation of funds for the JJCPA program, please contact Chris Hill, Principal Program Budget Analyst, at(916) 322-2263. For questions regarding the juvenile justice program approval and requirements, please contact Aaron Long at the Corrections Standards Authority at(916) 322-1427. Sincerely, TODD JERUE Chief Deputy Director Attachment 1/1/2010 Co.Jail District Front-line Juvenile COUNTY Population Operation Attorney Enforcement Justice Total SAN BERNARDINO 2,073,149 $ 519,596 S 519,596 $ 3,320,182 $ 5,029,874 $ 9,389,249 ADELANTO 28,540 $ 100,000 APPLE VALLEY 70,040 $ 100,000 BARSTOW 24,281 $ 100,000 BIG BEAR LAKE 6,278 $ 100,000 CHINO 84,742 $ 101,906 CHINO HILLS 78,971 $ 100,000 COLTON 51,816 $ 100,000 FONTANA 190,356 $ 228,911 GRAND TERRACE 12,717 $ 100,000 HESPERIA 88,479 $ 106,399 HIGHLAND 52,495 $ 100,000 LOMA LINDA 22,760 $ 100,000 MONTCLAIR 37,535 $ 100,000 NEEDLES 5,809 $ 100,000 ONTARIO 174,536 $ 209,886 RANCHO CUCAMONGA 178,904 $ 215,139 REDLANDS 71,926 $ 100,000 RIALTO 100,260 S . 120,567 SAN BERNARDINO 204,800 $ 246.280 TWENTYNINE PALMS '30,649 $ 100,000 UPLAND 76,106 $ 100,000 VICTORVILLE 112,097 $ 134,801 YUCAIPA 51,476 $ 100,000 YUCCA VALLEY 21,292 $ 100.000 UNINCORPORATED 296,284 $ 358,293 total population 2,073,149 total,front-line $ 3,320,182 enforcement r Yam" '1912010 IPM CITY OF GRANC^��E SLESF (AB3229 COPS) 2007 2008 2009 2010 2010 20' le/Object Actuals Actuals Actuals AMENDED BDGT Actuals Dept Reque CITIZEN PATROL UNIFORMS 0.00 10.72 0.00 0.00 0.00 OX i CONTRACTUAL SERVICES-COUNTY 260,936.04 292,062.51 289,916.25 297,918.00 214.173.66 99,500.0 I TRANSFER-IN(OUT)COST ALLOCATION 500.00 500.00 500.00 500.00 250.00 500.0 Total SLESF(AB3229 COPS) 261.436.04 292,573.23 290,416.25 298,418.00 214,423.66 100,000.0 Format Name(s):S=GTBUDGET 0=2011 Page. 3 •s f i.4LlFOftNIA AGENDA REPORT MEETING DATE: December 14, 2010 Council Item (X) CRA Item ( ) TITLE: Final Parcel Map 17787, to consolidate seven existing lots and resubdivide them into seven new parcels. PRESENTED BY: Richard Shields, Director of Building and Safety/Public Works RECOMMENDATION: That the City Council adopts'Resolution No. 2010- � , to: 1. Approve Final Parcel:Map No. 17787. 2. Accept the Performance Bond submitted by Stater Brother's Market for all on-site infrastructure improvements. 3. Request that the Mayor sign Final Parcel Map No. 17787 prior to recordation. 4. Direct the City Clerk to record the Final Parcel Map with the San Bernardino County Recorder's Office. BACKGROUND: On July 15, 2010 the Planning Commission conducted a duly noticed public hearing on Tentative Parcel Map No. 17787, and concluded the hearing by recommending approval of the Tentative Parcel Map No. 17787, and directed Staff to move the parcel map forward for City Council's approval. On July 27, 2010 the City Council approved Tentative Parcel Map No. 17787, which applies to approximately 12.5 acres of approximately'21—acres of Town Square Master Development Plan (TSMDP) area, and contemplates the resubdivision of seven existing parcels into seven new lots. The boundaries of the tentative parcel map encompass Development Units 1 and 2 of the TSMDP: COUNCIL AGENDA ITEM NO. DISCUSSION: After the Planning Commission- and City Council's approval of the proposed tentative parcel map, a final parcel map reflecting the requests as provided in the conditions of approvals has been prepared for City Council approval. The final parcel map approval is a ministerial act and a requirement of the City's subdivision ordinance. Pursuant to the City of Grand Terrace Subdivisions Ordinance, Section 17.28.050, "The City Council shall not deny approval of a final parcel map if the City has previously approved a tentative map for the proposed subdivision and if the City Council finds that the final parcel map is in compliance with the requirements of-the Subdivision Map Act". The final parcel map has been submitted by the Subdivider, reviewed by the City Engineer and recommended for approval for compliance with the conditions of approval set forth in Resolution No. 2010-30, and. the requirements of the City's Subdivision Ordinance No. 253. A performance bond has been submitted by Stater Brothers as sufficient surety for the guarantee of completion of all on-site improvements prior to final map approval as identified in the Conditions of Final Map Approval, Resolution 2010-30. Staff recommends that the City Council approve Final Parcel Map No. 17787, accept the bond for on-site improvements and requests that the Mayor sign the attached final parcel map to be recorded by the City Clerk's office. FISACL IMPACT: The approval of the final parcel map is a ministerial act that requires collection of funds from the Subdivider to cover the actual cost for the final parcel map approvals. Res ctfully submitte R' hard Shields Director of Building and Safety/Public Works Manager Approval: Betsy dams City Manager ATTACHMENTS: Bond RESOLUTION NO. 2010- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING PARCEL MAP NO. 17787, CONSOLIDATING SEVEN EXISTING PARCELS AND RESUBDIVIDING THE PARCELS INTO SEVEN NEW PARCELS AND ACCEPTING THE PERFORMANCE BOND FOR ON-SITE IMPROVEMENTS. WHEREAS, the subdivider has applied for approval of Tentative Parcel Map 08-01 (TPM No. 17787), which applies to approximately 12.5 acres of the approximately 21- acres Town Square Master Development Plan (TSMDP) area, which will resubdivide seven existing parcels into seven new parcels. The boundaries of the parcel map encompass Development Units 1 and 2 and a. portion of Development Unit 4 of the TSMDP all of which are located on,the south side of Barton Road and the east side of Michigan Street, zoned BRSP-General Commercial. WHEREAS, on July 15, 2010 the Planning Commission conducted a duly noticed public hearing on Tentative Parcel Map No. 17787, and concluded the hearing by recommending approval of the Tentative Parcel Map. 17787, and directed Staff to move the map forward for City Council's approval. WHEREAS, on July 27, 2010 the City Council approved Tentative Parcel Map No. 17787, which applies to approximately 12.5 acres of approximately 21-acres of TSMDP area, that contemplated the subdivision of seven existing parcels into seven new parcels. WHEREAS, Parcel Map No. 17787 has been reviewed for compliance with the City's subdivision ordinance and the subdivision map act and recommended for approval by the City Engineer for recordation and compliance with the conditions of approval set forth in Resolution No. 2010-30. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grand Terrace that the City Council approves Parcel Map No. 17787, and accepts the faithful performance bond for all on-site infrastructure improvements submitted by F&D Surety Bond No. 08901212. BE IT FURTHER RESOLVED that the Mayor be authorized to execute the parcel map agreement on behalf of the City and authorize the City Cleric to record the parcel map with the San Bernardino County Recorder's Office. APPROVED AND ADOPTED this day of , 2010. Mayor ATTEST: City Clerk Attachment:Performance Bond and Mylar for signature. ^idelity and Deposit Company of Maryland Home Office; P.O.Box 1227,Baltimore,MD 21203-1227 W6N 7 �� rtolrd No.08901212 I'rcmiam: $19,238.00 PERFORMANCE :BOND KNOW ALL MEN BY THESE PRESENTS: That STATER BROS MARKETS,a Cal L9n.;-qrpor to ion (hereinafter called Principal), as Principal and FIDELITY AND DEPOSIT COMPANY OF MAR.YLA.ND, a corporation of the State of Maryland, with its Home Office in the City of Baltimore, Maryland, and duly authorized and licensed to do business in the State of CALIFORNIA (hereinafter called Surety), as Surety, am held urid firmly bound unto C'Ly Q•,,Q�t I 1t,RACE (hereinafter callcd City), in the till] and just sum of One Million Nine Hund39d EV_eIl;y Three 'Thousand Seven Hundred_Sevens _T�a and NO/100ths Dollars (S 1,923,772.00),to the payment of which sum, well and truly to be made,the Principal and Surety bind themselves,their and each of their heirs,executors,administrators,successors and assigns,jointly and severally, firmly by these presents. Signed,sealed and dated this 6th day of]December,2010. WHEREAS,the Principal has entered into a certain written agreement,dated the day of with the Obligee for On Site Improvements—Tentative Parcel Map 08-01 (TPM No 17787)which agreement is or may be attached hereto for reference. NOW, THEREFORE,T14E CONDITION OF THIS QBLIGrATION IS SUCH,That, if the Principal shall well and truly perform and carry out the covenants,termi and conditions of said agreement,then this obligation to be void; otherwise to remain in Bill force and effect. PROViDED,HOWEVER,that the term of this bond shall be for the period from December 6,2010_through December 6.2011,and any annual extensions of this bond shred be cxrcuted via Certificate of Continuation. The failure of the Surety to extend this bond at any annual bond anniversary shall not in itself be the basis for a claim against the bond, Any and all claims by the Obligee shall be reimbursed by the Surety on the basis of reasonable,actual costs incurred of takeover by the: Obligee. The Obligee, with the acceptance of this bond, acknowledges that the provision and conditions of this bond are specifically incorporated in the Contract as an amendment thereto and that the language of this bond shall supersede and Preempt any Contract language to the contrary. Surety may cancel this bond at any time, without notice or demand, for failure to pay premium, collateral or other amounts due under this bond. Regardless of the number of extensions of this bond,the aggregate liability of the Surety is limited to the penal amount and shall not be cumulative, 'No right of action shall accrue on this bond to or for the use of any person,governmental entity or corporation other than the Obligee. Any suit under this bond must be instituted before the expiration of one(1)year from the first occurrence date of any event that f.'nrms the basis for the material service default underlying the Conditions Precedent unless such limitation is prohibited by the law controlling the construction liereof,such limitation ahall by deemed to be amended so as to be equal to the minimum period of limitation permitted by such law, Signed and scaled on December G,2010 ATTEST: STATE:R 13ROS MARKETS, a Califomia(SF„AL) C329 PIP41,ITY AND DFPO51 -COMPANY OF MARYLAND ,r u r^ �■ l f ICim Heredia By. Victoria M Campbe}l,_Atto�rney- Fact �i C 329 c CALIFORNIA ALL-KRPOSE ACKNOWLEDGMENT State of W California County of Orange_ On December 6. 2010 before me,Kim Heredia, Notary Publir DATE NAME,TITLE OF OrrICER-B.G„"JANE DOE,NOTARY PUBLIC° personally appeared Vigoria M. Campbell , who proved to me on the basis of satisfactory evidence to be the person(s)whose names (s) Ware subscribed to the within instrument and acknowledged to me that he/shelthey executed the same in Wher/*e#authorized capacity(ies), and that by 141s/her/theif signature(s) on the Instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. AL A IL A KIM HEREDIA WITNESS my hand and official seal. :+ COMM,#1757050 C.y NOTARY PUIXIC-CALIF ANIA ORAN"C"TV a My COMM,liNN"July H,tplfl l , S��NATUP,E OF NOTARY OPTIONAL Though the data below is not regwrad by law,It may prove valuable to persons relying on the document and could provenl fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑INIDIVIDUAL ❑CORPORATE OFFICER TITLE OR TYPE OF DOCUMENT TITLE(S) ❑ PARTNER(S) ❑ UMITED ❑ GENERAL . . �. NUMBER OF RAGES ATTORNEY.IN.,FACT ❑ TRUSTEE(S) ❑ GUAtRUTANICONSERVATOR DEC vY h g 11�h ❑ OTHER: DATE OF DOCUMENT SIGNER IS REPRESENTING: NANIE Of FERSON(S)OR ENTITY(IGS) rt(� ilt alto 1�R .OS1t.C;CS[Tl 3rt.._n1 fllaf land 'AGWR(S)OTt IER THAN NAMED ABOVE. I Power of A#forney FIDELITY AND DEPOSIT COMPANY OF MARYLAND KNOW ALL MEN BY'ITIESE PRESENTS.Thaf the FIDELITY AND DEPOSIT COMPANY OF MARYLAND,a corporation of the State of Maryland,by WILLIAM J,MILLS,Vice President,and GREGORY E.MURRAY,Assistant Secretary,in pursuance of authority granted by Article Vl,Section 2,of the By-Laws of said Cq�A� which are set forth on the reverse side hereof and an hereby certified to be in full force and effect on the da� ht ?t�s-�eraby nominate, constitute and appoint Victoria M.CANEPHI aLL,Kim HEREDIA aaf �lr, ofIrvine,California, EACH its true and•lawfW agent and Attoxney-in-Fact,to m ° behalf as surety,and as its act.and deed, any and all bonds and Unde , ecu' f or undertakings in pursuance of tl7eSe.�rt"se�1 ,shall be 2is birldir ,upon erits and purposes,as if they had been U1 duly execueed and aelalowled e y ele ornpany at its office In Baltimore,Md.,in their own proper c rsons el, o e a of p p p �b h if Victoria M.C.AMPBELI.,Marta Lutsa R AQUfNALDO Kl dr 24 The said Assisfant s lie eby certify that the extract set forth on the reverse side hereof is a true copy of Article VI, Section 2,of the By-L 9 s d Company,and is now in force, IN WITNESS WHEREOF, the said Vice-President and Assistant Secretary have hereunto subscribed their names and affixed the Corporate Seal of the said FIDELITY AND DEPOSrr COMPANY OF MARYLAND,this 2463 day of February, A.D.2009, ATTEST, FIDELITY AND DEPOSIT COMPANY OF MARYLAND t�p,pDip .d �► Y y.: f By: - Gregory E.Murray Assistant Secretary 17-rilliam J.Mi14 Mee President ` State of Maryland ss. City of Baltimore On this 24th day of February, A.D. 2009, before the subscriber, a Notary Public of the State of Maryland, duly matmissioned and cluilified,came WILLIAM J.MILLS,Vice President,and GREGORY E.M>3RRAY,Assistant Secretary of the FID13Y..'rrY AND DEPOSIT COMPANY OF MARYLAND,to me personally known to be the individuals and officers described in and who executed the preceding instrument,and they each acknowledged the execution of the same,and being by me duly sworn,severally and each for himself deposeth and,saith,that they are the said officers of the Company aforesaid, and that the seal affixed to the preceding instrument is the Corporate Seal of said Company,and that the said Corporate Seal and their sigtatures as such officers were duly affixed and subscribed to the said instrument by the authority and direction of the said Corporation. INTESnMONY WHEREOF, I have hereunto set my hand and affixed any Official Seal the day and year first abovo written. Constance A.Dunn Notary Public My Commission Expires: July 14,2011 PDXF 012.8123K EXTRACT FROM BY-LAWS OF FIDELITY AND DEPOSIT COMPANY OF MARYLAND "Article VI,Section 2. The Chairman or the Hoard, or the President,or any Executive Vice-President,or any of the Senior Vice-Prcaidents or Vice-Presidents specially authorized so to do by the Board of Directors or by the Executive Committee, shall have power,by aad with the concurrence of the Secretary-or any one of.the Assistant Secretaries,to appoint Resident Vice-Presidents, Assistant Vice-Presidents and Attorneys-in-Fact as the business of the Company may require, or to authorize wly person or persons to execute on behalf of the Company any hands, undertaking, recopizances, stipulations, policies, contrcLN, agreements, deeds, and releases and assigninents of judgements, decrees, mortgages and instrumettts in the nature of mortgages,...and to affix the seal of the Company thereto." CERTIFICATE 1,the undersigned,Assistant Secretary of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND,do hereby certify that the foregoing Power of Attorney is still in,full force and effect on the date of this certificate;and I do further certify that the Vice-President who executed the said Power of Attorney was one of the additional Vice-Presidents specially authorized by the Board of Directors to appoint any Attorney-in-Fact as provided in Article VI, Section ?, of the By-haws of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, This Power of Attorney and Certificate may be signed by facsimile under and by authority of the following.resolution of the Board of Directors of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND at a meeting duly called and held on the 1 nth day of May, 1990. RESOLVED: "That the facsimile or mechanically reproduced sea] of the company and facshnile or mechanically reproduced signature of any Vice-President, Secretary,or Assistant Sacretary of the Cotxipany, whether made heretofore or hereafter,wherever appearing upon a certified copy of any power of attorney issued by the Company, shall be valid and binding upon the Company with the same force and effect as though manually affixed." IN TESTIMONY W MREOF,I have hereunto subscribed my name,and affixed the corporate seal of the said Company, this day of _ ._ __DEC 0 6 2010 dssistmit SeCsetr>ry 9 " AGENDA REPORT ALIiUR91A MEETING DATE: December 14, 2010 Council Item( X) CRA Item ,( ) TITLE: FY 2010-11 Appropriations Limit-Revised PRESENTED BY: Bernie Simon, Finance Director RECOMN ENDATION: 1) Select the Change in Per Capita Personal Income for Fiscal Year 2010-2011 of-2.54%for Appropriation Limit Calculation. 2) Select the Population Change for City of Grand Terrace for Fiscal Year 2010-2011 of 2.03%for Appropriation Limit Calculation. 3)Rescind Resolution 2010-31 4) Adopt Resolution Establishing Revised FY 2010-2011 Appropriation Limit for the City of Grand Terrace at $9,835,216. BACKGROUND: Council adopted the Appropriations Limit on August 10, 2010. However, our auditors noticed a math error on the calculation that increased the actual cushion by $97,764.The auditors also recommended that such correction be done in the current year to avoid compounding of the same error in future years. Correction of the error increases the Appropriations Limit from $9,737,452 to 9,835,216. Article XIII-B of the California Constitution was adopted as Proposition 4-in the November 1979 General Election. Proposition 4 established an appropriations limit from proceeds of taxes for each governmental entity in the State of California. The appropriations limit is unique to each governmental entity, and must be determined annually. Redevelopment is not subject to appropriations limit. The intent is to provide certain limitations and controls on government spending at all levels of government in the State, but these restrictions are intended by legislature to be applied in a reasonable and practical manner so as to allow some flexibility to meet constantly changing conditions and needs of the citizens for governmental services. The appropriation limit of the City is the "proceeds from taxes", as defined, adjusted annually by changes to the population, COUNCIL AGENDA ITEM NO. 3� 1 cost of living, or nonresidential new construction. The Department of Finance shall notify each local agency, no later than May 1 st of each year, of the change in cost of living or change in California per capita personal income, whichever is less, and the population for each local agency for the prior calendar year. DISCUSSION: Proposition 111, passed in June 1990, made several changes to the method to be used in calculating the limit. These changes allow that the Population Factor may be the change in population of the City or the change in population of the County. I have included a copy of the State Department of Finance list of population changes for the County and cities therein. Proposition 111 also changed the Price Factor to be a choice of the change in California per capita income or the change in the local assessment roll due to the addition of local nonresidential new construction. Council must make their selection annually on each option by recorded vote. Redevelopment appropriations are not subject to the Appropriations Limit. INFORMATION At present, an appropriation cushion of$7,534,991 exists before the limitation would impact the City. The new appropriations limit is a decrease of 0.56%from last year. Accompanying this staff report is the Appropriations Limit Resolution calculations for the City of Grand Terrace with supporting documentation. AVAILABLE FACTORS: FY 2010- 2011 A Per Capita Personal Income Change California -2.54% B % Change in Local Nonresidential Construction -6.4% C Po ulation Change for Grand Terrace(DOF) 2.03% D Po ulation Change for San Bernardino County 0.85% SELECTED FACTORS USED A)% Change in Per Capita Personal Income 0.9746 (Expressed as a Ratio) D)Population Change for City of Grand Terrace (Expressed as a Ratio) 1.0203 CALCULATION FACTOR FOR FY 2010-2011 0.99438 0.9746 X 1.0102 FY 2010-11 APPROPRIATION LIMIT CALCULATION Prior Year(FY 2009-10)Appropriation Limit $ 9,890,759 Multiplied by Allowable Increase Factor X 0.99438 New APPROPRIATION.LIMIT MAXIMUM FY 2010- 2011 APPROPRIATION LIMIT(SCH 1) $ 9,835,21 AMOUNT OF APPROPRIATIONS SUBJECT TO LIMITATION FY 2010-2011 estimated Proceeds from Taxes(SCH 2) $ 2,300,225 AMOUNT UNDER(OVER)APPROPRIATIONS LIMIT $ 7,534,991 FISCAL IMPACT: y` None by this Action. Respectfully submitted, Bernie Simon Finance Director Manager Approval: f1 Betsy . Adams City Manager ATTACHMENTS: 1)DOF Price/Population Statistics 2) Resolution 2010-_ (vim' uM A� Ati Q' a� n^ Z W III n O �7 >Ic DEPARTMENT OF ARNOLD SCHWARZENE1313ER, GOVERNOR Q'�CiFppMP F I N A N C E 9 1 S L STREET H SACRAMENTO CA d 9581 4-3705 ■www.DOF.CA.GDV May 2010 Dear Fiscal Officer: Subject: Price and Population Information Appropriations Limit The California Revenue and Taxation Code, Section 2227, mandates the Department of Finance (Finance)to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2010, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2010-2011. Enclosure I provides the change in California's per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2010-2011 appropriations limit. Enclosure II provides city and unincorporated county population percentage changes, and Enclosure IIA provides county's and incorporated area's summed population percentage changes. The population percentage change data excludes federal and state institutionalized populations and military populations. Population Percent Change for Special Districts Some special districts must establish an annual appropriations limit. Consult the Revenue and Taxation Code, Section 2228 for further information regarding the appropriation limit. You can access the Code from the following website: "http://www.leginfo.ca.gov/calaw.htmi"check box: "Revenue and Taxation Code"and enter 2228 for the search term to learn more about the various population change factors available to special districts to calculate their appropriations limit. Article XIII.B, Section 9(C), of the State Constitution exempts certain special districts from the appropriations limit calculation mandate. Consult the following website: "http://www.leginfo.ca.6ov/.const/.article 1313"for additional information. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this issue should be referred to their respective county for clarification, or to their legal representation, or to the law itself. No State agency reviews the local appropriations limits. Population Certification The population certification program applies only to cities and counties. Revenue and Taxation Code Section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller's Office. Finance will certify the higher estimate to the State Controller by June 1,2010. Please Note: Prior year's city population estimates may be revised. If you have any questions regarding.this data, please contact the Demographic Research Unit at (916)323-4086. J May 2010 Enclosure I A. Price Factor: Article XIII B specifies that local jurisdictions select their cost-of-living factor to compute their appropriation limit by a vote of their governing body. The cost-of-living factor provided here.is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the 2010-2011 appropriation limit is: Per Capita Personal Income Fiscal Year Percentage change (FY) over prior year 2010-2011 -2.54 B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2010-2011 appropriation limit. 2010-2011: Per Capita Cost of Living Change = -2.54 percent Population Change = 1.03 percent Per Capita Cost of Living converted to a ratio: -2.54 + 100 = .9746 100 Population converted to a ratio: 1.03 + 100 = 1.0103 100 Calculation of factor for FY 2010-2011: .9746 x 1.0103 = .9846 Enclosure II Annual Percent Change in Population Minus Exclusions January 1,2009 to January 1,2010 and Total Population,January 1,2010 Total County Percent Change --- Population Minus Exclusions --- Population City 2009-2010 1-1-09 1-1-10 1-1-2010 San Bernardino Adelanto 1.35 27,000 27,364 28,540 Apple Valley 0.42 69,748 70,040 70,040 Barstow 0.67 23,715 23,874 24,281 Big Bear Lake 0.53 6,245 6,278 6,278 Chino 172 75,570 76,871 84,742 Chino Hills 048 78,597 78,971 78,971 Colton 0.42 51,599 51,816 51,816 Fontana 0.87 188,712 190,356 190,356 Grand Terrace 2.03 12,464 12,717 12,717 Hesperia 0.50 88,041 88,479 88,479 Highland 0.39 52,289 52,495 52,495 Loma Linda 0.87 22,503 22,698 22.760 Montclair 171 36,905 37,535 37,535 Needles 0.47 5,782 5,809 5,809 Ontario 0.94 172,908 174,536 174,536 Rancho Cucamonga 1 05 177,051 178,904 178,904 Redlands 0.55 71,532 71,926 71,926 Rialto 0.40 99,860 100,260 100,260 San Bernardino 0.31 202,386 203,023 204,800 Twentynine Palms 0.96 16,840 17,001 30,649 Upland 1.59 74,914 76,106 76,106 Victorville 2.48 104,855 107,458 112,097 Yucaipa 0.47 51,233 51,476 51,476 Yucca Valley 0.40 21,208 21,292 21.292 Unincorporated 0.65 285,280 287,133 296,284 County Total 085 2,017,237 2,034.418 2,073,149 (')Exclusions include residents on federal military installations and group quarters residents in state mental institutions,state and federal correctional institutions and veteran homes. Page 1 f RESOLUTION NO. 2010- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE FISCAL YEAR 2010-11 APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIII-B OF THE STATE CONSTITUION AS REQUIRED BY CALIFORNIA CODE SECTION 7910 �J WHEREAS, Article XIII-B of the California Constitution requires that an Appropriations Limit be determined and established annually,of each governmental entity within the State of California; NOW THEREFORE,THE CITY COUNCIL OF THE CITY OF,GRAND TERRACE DOES HEREBY RESOLVE,DECLARE, DETERMINE AND ORDER AS FOLLOWS: - Section 1. . Rescind Resolution 2010-31. Section 2. That the City Council of the City of Grand hereby establishes the Fiscal Year 2010-11 Appropriations Limit pursuant to Article XIII-B of the State Constitution as required by California Government Code Section 7910. Section 3. That the limits determined in Exhibit"A" attached hereto and incorporated herein by reference is the established limit for Fiscal Year 2010-11. Section 4. That the City of Grand Terrace, as shown in Exhibit"A", has complied with the limit imposed on appropriations and that all proceeds of taxes were appropriated for fiscal year 2010-11. PASSED, APPROVED AND ADOPTED this 141h day of December 2010. ATTEST: City Clerk, Mayor of the City of Grand Terrace City of Grand Terrace and the City Council thereof RESOLUTION NO. 2010- EXHIBIT A SCHEDULE 1 City of Grand Terrace Appropriations Limit Calculation FY 2010-11 A. Appropriations Limit from prior year—FY 2009-10 $9,890,759 X B. Factors Selected for Calculations 1)%Change in Per Capita Personal Income 0.9746 (Expressed as a Ratio) 2)Population Change for City of Grand Terrace- 1.0203 (Expressed as a Ratio) Maximum Permitted Growth Rate per Proposition 111 (0.9746 X 1.0203) 0.99438 C. New Appropriations Limit for -FY 2010-11 $9,835,216 ($9,890,759 X 0.99438). RESOLUTION NO. 2010- EXHIBIT A SCHEDULE2 City of Grand Terrace Calculation of Proceeds from Taxes BUDGETED REVENUES FY 2010-11 Proceeds Non-Proceeds Total From Other than Taxes i j Taxes (Fees,etc) Property Taxes 1,404,325 Homeowner's Property Tax Relief 4,675 Real Property Transfer Tax 13,000 Sales Taxes(Incl In-Lieu) 744,825 Franchise Fees 458,410 Business Licenses 83,000 Dog Licenses 18,000 Child Care Fees 1,024,163 Planning Fees 17,850 Engineering and Building Fees 47,000 Interest(allocated 49°/u/51%) 10,400 9,600 NPDES Fees 13,000 Motor Vehicle in Lieu 40,000 Rent of City Facilities 41,664 RESIDUAL RECEIPTS SEC AGMT 300,000 + Misc.Non Tax(from Sch 3) 136,627 County Article 19 Revenue 38,000 Total General Fund 2,300,225 2,104,314 4,404,539 Street Fund Fees and Interest 4,000 Storm Drain Fund—Fees and Interest 500 Park Fund -Fees and Interest 7,250 AB3229 COPS Grant 100,000 Air Quality Fund-DMV Fee 14,350 subvention Gas Tax Fund(A)&Interest 364,303 Traffic Safety Fund—Court Fines 85,000 Facilities Fund 800 Measure"T Fund(B) 145,500 Waste Water Fund—User fees and 1,501,800 interest Lighting Landscape Maintenance— 14,335 Assessments CDBG 62,781 Bike Lane Project 0 Street Capital Projects 91,500 Barton Bridge Project 855,103 TOTAL 2,300,225 5,351,536 7,651,761 (A)Exemption under$0.09/Gallon;cities receive approx. .03 3 9/Gallon from Gas Tax (B)Exempted from calculation RESOLUTION NO. 2010- EXHIBIT A SCHEDULE3 City of Grand Terrace Calculation of Proceeds from Taxes MISC NON-TAX-ITEMS BUDGETED REVENUES FY 2010-11 YARD AND GARAGE SALE 1,000 TRANSFER IN 5,000 SIGN PLACEMENT PERMITS 1,000 CANDIDATE,STATEMENT FEES 1,000 MISC PERMITS' 500 EMERGENCY ASST GRANT 4,177 HOME OCCUPATION PERMITS 1,000 HOUSEHOLD HAZARDOUS WASTE 11,900 RENTAL INSPECTION FEES 62;250 ANIMAL SHELTER FEES -2,900 RECREATION FEES 4,000 SALE OF MAPS AND PUBS 500 RETURNED CHECK FEES 100 PARK LIGHT&USE FEES 10,950 NUSCREVENUE 1,000 INSURANCE REFUNDS 0 FINES&PARKING CITES 29,350 SALE OF PROPERTY 0 Total Misc-Non Tax—(To Sch 2) 136,627 CITY OF GRAND TERRACE CRIME PREVENTION COMMITTEE Regular Meeting r 0 +g MINUTES ;,rY I)r LaHANU TERRACE September 13,2010 CI Y :;i_EAK'8 OF"ARTMEV'fi' The Grand"terrace Crime Prevention Committee met for the regular meeting at the upstairs Conference Room at City flail. Meeting was called to order at 4:10 p.m. by Chairperson, Don Bennett. MEMBERS PRESENT were Chairperson, Pat Smith, Lew Neeb, Don Bennett and JoAnn Johnson. MEMBERS ABSENT—Philomene Spisak, Debra Hurst and Marjorie Owens(see note under Correspondence). CITY STAFF/SHERIFF'S DEPT.—Nina Mendoza, Sheriffs Special Services. GUESTS PRESENT—None. INTRODUCTIONS—None. AGENDA was approved with motion by Lew Neeb and second by Pat Smith. MINUTES for the meeting of August 9,2010 were approved with motion by Pat Smith and second by Lew Neeb. PUBLIC COMMENT—None. CORRESPONDENCE—Pat Smith reported that she had met Marjorie Owens at the grocery store and that Marjorie had returned her letter of renewal of membership to the city with a note that she would not be renewing membership with the Crime Prevention Committee. This report was confirmed by Brenda who indicated that it was on the City Council Agenda for tomorrow night. UNFINISHED BUSINESS A. Criminal Activities a. Nina reported that there has been approximately 6 people arrested who were responsible for criminal activities at the Highlands and possibly other places. b. There has been at least one Grand Theft Auto and other crimes. c. One rape was reported that involved young people drinking and partying. d. At a recent DUI check there were 752 screenings with two arrests(one for DUI and one for a warrant) and four vehicles were towed.. B. Neighborhood Watch Program a. There were 17 people who signed up for a Neighborhood Watch program at the Movies in the Park. b. One person from COP is working with Neighborhood Watch and is quite ,:nthustastic.. c. Blue Mountain Senior Villas has had three Neighborhood Watch Programs .ind are quite enthusiastic. L .J. Grand Royal Mobile Estates and the Ifighlands have both had recent COUNCIL AGENDAITEM NO.3F'/ - Neighborhood Watch presentations. NEW BUSINESS A. Crime Prevention Planning a. Covered above under Neighborhood Watch. B. Neighborhood Watch Public Relations- a. Covered mostly in items above. REPORTS A. Summary of Law Enforcement Activity a. Several items are reported above. B. Other Community Programs a. JoAnn reported that the Senior program last Friday was Dirk Golden, Ventriloquist and that every one had thoroughly enjoyed the show. b. She also reported that on October 8 h the program will include four representatives from the California State Department of Consumer Affairs. This will include Auto Guru Robert Snyder, Sandy Windbigler, Robert Navaro and a representative for insurance. c. She also reported that there will be a Flu Shot Clinic from 9 to l l on October 25`h. On that same morning will be a Drug Pick Up sponsored by-Home Instead from 9 to noon. Both very important events. C. Member Reports—Nothing additional. ADJOURNMENT-There being no further business to discuss, the meeting was adjourned at 4:34 p.m. Acting Secretary, '(' JoAnn J son COMMUNITY EMERGENCY RESPONSE TEMP E C E]VE MINUTES SEPTEMBER 7, 2010 ('.0U 0 - 2010 CITY OF GRAND TERRACE CITY CLERK'S DEPARTMENT Members Present: Barbara Smeltzer, Jonathan Luckman, Sandra Luckman, Peggy Witt, Kyle Feldman, Sue Taylor, Adele Urrea, Bernie Urrea, Joe Borielli, Hanni Bennett, Helen Ramos,Joe Ramos,James Vert, Randy Halseth,Jeff Allen, Matt Wirz,Debra Hurst, Vic Pfennighausen. Members Absent: Tom Roberts, Thomas Schwab, Walt Stanckiewitz, Linda Carter, Mil Herman,Jim Stamm, Nick Calero, Andrew Anaya, Ken Smith, Monique Stanckiewitz, Doug Von Kriegelstein, Glenn Nichols, Dragos Barbu, Shannon Bryant, Ingrid Clark, Michael Cerda, William Fenn, Lee Ann Garcia,Jolene Gustatson, Cliff Homan,James Monroe, Margie Miller, Barrie Owens, David Ortiz, Bernard Ojeda, Carlos Ramirez,Terrilee Robb, Lynette Sandiford, Oscar Santana, Phil Spisak, Joanne Thoring,Joyce Wildenauer. Meeting was called to order by Randy Halseth at 7:12 pm. Flag salute was given. Sign-up sheet passed around to members for roll call. Agenda for September.7, 2010 meeting was approved by members present. Minutes for August 3, 2010 meeting were approved by members present. No treasurers report at this time. Training was given by Randy Halseth on Life Threatening Conditions: The phases of death—within minutes,hours or days. Identify the Killers Airway --- Open the airway Bleeding--- Stop the bleeding Shock--- Lay victim on back—raise feet 10"-12" Triage—Limited Resources Immediate ----Delayed----Dead Documentation Establish the Treatment Area. Triage Pitfalls --- No team plan Indecisive leadership Too much focus on one injury Treatment Remember"We do the most good for the most number of people" COUNCIL AGENDA ITEM NO.3L_ A Old Bus :ie.ess: CERT 1-E.,�'s and T-Shirts are still -Cor sale. All equip-}lent in- Inventory Con..trol— Equipment in the process of being marked. Shakeout' Scenario 10/21/10—S�sndy Luckman in charge of Scenario Committee On 9/20/;,0 at 1:00 pm Earthqua x- Scenario group will meet at the EOC building to work on the Sc-.,:narios. The Ston-ge Unit-has been levelb.-d and is ready to have shelves installed and some equipmer:� moved into it. New Busy ness: Training :s open to all members- Several of the members who went through training for teaching. Afterwards any memb^r who would like to do some training is welcome to it. Membeniaip'recruitment— Sandy Luckman will be working on recruiting new members and,getter them up for training. Need to ; pdate information on City Website about CERT. Randy F.:.iseth makes a motion to donate$200.00 to Loma Linda for future potential Grand T:mace trainees. Sue Taylor seconds the motion. Approved by members present. Joe Ranv is reports that 12 members have completed NIMS 100 and 700. Matt Wirz will see if the county could provide mi instructor for the CERT members. Randy 14,�Iseth and Jeff Allen scheduled at CERT workday for 09/20/10 at 9:00 am to install sr4;Ives in new storage unit and move some inventory around. There being no further business to discuss, meeting was adjourned at 8:10 pm. Next Meeting October 5, 2010 7:00 pm City Hall RespectiNely Submitted, Debra Hurst Secretary COMMUNITY EMERGENCY RESPONSE TEAMF-10 MINUTES OCTOBER 5, 2010 ul 1Y .F";RAND TERRACE CITY(;I_�RK'S DEPARTMENT Members Present: Randy Halseth, Jeff Allen, Joe Ramos, Barbara Smeltzer, Debra Hurst, Sue Taylor, Vic Pfennighausen, Mil Herman, Peggy Witt, Jim Stamm, Jolene Gustason, Joe Borrielli, Hanni Bennett, Bernard Ojeda, James Vert. Members Absent: Andrew Anaya, Dragos Barbu, Shannon Bryant, Ingrid Clark, Linda Carter, Michael Cerda, William Fenn, Lee Ann Garcia, Cliff Homan, Sandy*Luckman, James Monroe, Margie Miller, Glenn Nichols, David Ortiz, Carlos Ramirez, Helen Ramos, Terrilee Robb, Tom Roberts, Lynette Sandiford, Thomas Schwab, Ken Smith, Monique Stanckiewitz, Walt Stanckiewitz, Phil Spisak, Joanne Thoring, Adele Urrea, Bernie Urrea, Doug Von Kriegelstein, Joyce Wildenauer, Matt WIRZ. Meeting was called to order by Randy Halseth at 7:04 pm. Flag salute was given. Sign-up sheet passed around to members for roll call. Agenda for October 5, 2010 meeting was approved by members present. Minutes for September 7, 2010 meeting were approved by members present. No treasurers report at this time. Training was given by Debra Hurst on CERT Organization. CERT Organization: How to organize and deploy volunteer resources according to CERT organization principles. How to protect your own safety and your partner's during search and rescue. Documentation: Strategies for documenting situation and resource status. Incident Command System (ICS) —The ICS concept is the system used by fire and law enforcement agencies to handle emergency operations. ICS provides a flexible means of controlling personnel, facilities, equipment, and communication and can be expanded as necessary. Its principles are used as the basis of the CERT organization. The key question that CERT leaders must always ask is: "Is it safe for CERT members to attempt the rescue?" Whether or not to attempt a rescue depends on the degree of damage to the structure involved. It is vital to document and communicate information about situation and resource status to all CERT levels. Response teams and their functional groups must provide the command post with ongoing information about damage assessment, group status and ongoing needs. The command post must document the situation status so that the overall disaster situation can be tracked. Old Business: CERT hats and shirts are still for sale. New shelving has been installed in the new CERT shed. New Business: CERT will be at Stater Bros. on Thursday, October 21, 2010 to hand out emergency preparedness information. Sandy Luckman working on new handout and - with getting permission from Stater Bros to use their parking lot. We will also be recruiting for new CERT members. There should be a new training class in Loma Linda in February 2011. We will recruit individuals for that class. Sometime in the spring of 2011, there will be a combined training with Loma Linda, Colton and Grand Terrace CERT members for special exercises at Colton Fire Station. New flyers have been received and stored in the CERT Shed. Thank you Barbara. The city is finalizing the "Hazard Mitigation Report" and will be posting it on the City Web Site. "This is how the city will handle different types of disasters". Be on the lookout for it. r-. CERT will be participating in the Halloween Haunt on 10/31/10. We will hand out candy to the kids and emergency information to the parents. CERT will be participating in the Country Fair on 1.1/06/10. More information will be available at the November meeting. There was a discussion about the November meeting. The regular meeting would be on 11/02/10, which is election night. After the discussion, meeting was changed to 11/01/10 at 7:00 pm in the EOC building. There being no further business to discuss, meeting was adjourned at 8:00 pm. Next meeting November 1, 2010 7:00 pm EOC Building Respectively Submitted, Debra Hurst Secretary r N�* �ALI'FORYIA AGENDA REPORT MEETING DATE: December 14, 2010 Council'Item( X ) CRA Item ( ) TITLE: Development Agreement 09-01 Affecting a Portion of the Grand Terrace Town Square Master Development Plan Site Area PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: Adopt an Ordinance adopting Development Agreement 09-01. BACKGROUND: On November 9, 2010, the City Council conducted a public hearing on Development Agreement 09-01 ("Agreement"), and moved the proposed Ordinance adopting the Agreement over for second reading. DISCUSSION: Since the first reading of the Ordinance adopting the Agreement staff has made minor changes to Exhibit `B" and Exhibit"E-2" of the Agreement to clarify which of the 12.5 acres of the 20-acre Town Square Master Development Plan ("TSMDP") the Agreement would apply to. The Exhibits are attached and revised as discussed below. Exhibit "B", Property Subject to Development Agreement, has been revised to better depict the properties within the TSMDP that are subject to the Agreement and those that are not. The properties representing the 12.5 acres are now shown with a bolded boundary. Those parcels that are not subject to the Agreement are still identified as "NOT A PART' but in capitalized letters. A legend has been also added to this effect. Exhibit"E-2", Credits, has also been clarified to indicate that the development impact fee credits apply to Development Units 1, 2 and a portion of 4 of the TSMDP, which is consistent with the legal description and map exhibits of the Agreement. Exhibit "E-2" previously stated that the credits applied to DU 1 through 4. Development Unit 3 includes the parcels still owned by the Redevelopment Agency near Gage Canal and is not part of the land area affected by the ,Agreement. COUNCIL AGENDA ITEM NO.70 Town Square Development Agreement Page 2 of 3 FISCAL IMPACT: The construction of the Stater Bros. Market alone is expected to create new property taxes in the amount of $105,000 per year, with $35,000 going to the General Fund and $70,000 to the Agency. The property tax revenue is based on the current Stater Bros. valuation of the market and other taxable improvements, which is $17 million. Earlier property tax estimates were based on a $12 million building valuation. Sales tax revenue is projected to increase by 22% over the current store's sales tax due to expanded products and services. As additional new structures are built and new uses established, revenues would continue to increase. For the Stater Bros. Market alone, Traffic Signal Improvement and Arterial Improvement Development Impact Fees will be approximately $458,924. For the entire Development Unit 1, the traffic fees to be paid by the Developer are estimated at $681,898. These funds will be collected as the building permits are issued. For Development Units 1, 2, and 4 affected by the Development Agreement, total traffic fees collected for new traffic projects would be approximately$1.5 million. For total build-out of the Master Plan, including development of the Agency-owned parcels comprising Development Unit 3, staff estimates that approximately$2 - $2.2 million would be collected for traffic projects. Adoption of the Agreement would provide the Developer with a Development Impact Fee credit for Storm Drainage Facilities, General Facilities, Parkland/Open Space Acquisition, and Sewer Connection Fees. Based upon the proposed development impact fee credits, for all of Development Unit 1, approximately, $40,000 would not be paid into these special funds during the first five years of the Agreement. Without including fee credits for Development Unit 3 (Agency parcels near Gage Canal), if Development Units 1, 2 and 4 are constructed during the first five years, approximately $95,000 would not go into these development impact fee categories for new projects, rather than $128,828 previously estimated. These amounts do not reflect the Sewer Connection Fee, which are partly based on fixture counts. Pre ared by, Sandra Molina, Senior Planner Respectfully submitted, J4ce Powers Community and Economic Development Director Town Square Development Agreement Page 3 of 3 Manager Approval: f Betsy W.. Adams City Manager ATTACHMENTS: 1. Clarified Exhibits 2. Ordinance with Exhibit 1: Development Agreement I� Attachment 1 Clarified Exhibits TS Development Agreement Exhibit "B" Property Subject to Development Agreement 0 - 1 D D 1 4 � u NJ i D tv v8 O v z N � D N o i? CY) � D J _ 1167-231-09 {Y W N 2. S 1D ,q f 1167-231-08 L j Q� W 0 rn J .................................. •TES•' - --..._. ..Ja-N•- 1167-231-15 1167-231-03 i 1167-231-02 NOT A PART j 1167-231-01 a NOT A PART 1167-311-01 NOT A PART CL 1167-311-02 NOT A PART v _ TS Development agreement - 1- December 14.301i� r TS Development Agreement Exhibit "E-2" Credits DEVELOPER shall be entitled to credit against those Development Impact Fees required to be paid in Exhibit "E-1" as a consequence to the contribution made by preexisting development on the Property, or where it has been demonstrated that the Project will not require additional capacity or infrastructure, as indicated below: Storm Drainage Facilities 100% credit' General Facilities 100% credit Public Use Facilities $0.000 (no fee for commercial uses) Parkland/Open Space Acquisition 100% credit' Sewer Connection Fees 100% credit The credits set forth above shall apply to DU 1, DU 2 and a portion of DU 4 of the Project thFough t,.,ildeut off T A, in accordance with Section 3.4. ' Justification: Drainage is retained on site, and previous uses contributed their fair share to the existing system, which was overbuilt at the time of the RCS Study. Project contribution in this category is satisfied through buildout of DU 4. b Justification: Pre-existing, high density (mobilehome park, residential and commercial uses) contributed their fair share of general facilities; Project use is less intense then prior uses on Property. Project contribution in this category is satisfied through buildout of DU 4. Justification: Pre-existing, high density(mobilehome park, residential and commercial uses) contributed their fair share of parkland/open space; Project use is less intense than prior uses on Property. Project contribution in this category is satisfied through buildout of DU 4. d The Project should be credited for capacity purchased in the system by previous residential and commercial uses on the Property, in accordance with Section 4.68.040 of the Municipal Code. The Project has been found to have excess reserved capacity in the City's current wastewater treatment facilities through buildout of DU 4. TS Development Agreement -35- December 14.2010 G Attachment 2 Ordinance with Exhibit 1: Development Agreement �J ORDINANCE 2010- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA ADOPTING DEVELOPMENT AGREEMENT 09-01 APPLICABLE TO APPROXIMATELY 12.5 ACRES OF THE GRAND TERRACE TOWN SQUARE MASTER DEVELOPMENT PLAN WHEREAS, the Applicant, Mr. Douglas Jacobsen ("Applicant"), has requested that the City enter into a Development Agreement for implementation of the Grand Terrace Town Square, Master Development Plan ("TSMDP"), in accordance with Sections 65864 through 65869.5 of the California Government Code. WHEREAS, the Applicant has legal and/or equitable interest in approximately 12.5 acres of the TSMDP located south of Barton Road between Michigan Street and the Gage Canal. WHEREAS, the TSMDP proposes commercial development on properties totaling approximately 20.83 gross acres, with approximately 210,000 square feet of commercial uses to be constructed in five (5) phases or "Development Units". On July 27, 2010, by Resolution No. 2010-28, the City Council adopted Site and Architectural Review 07-12/Town Square Master Development Plan; the Master Development Sign Program 09-01; the Sign Program for Development Unit 1; Site and Architectural Review 07-07; and their related conditions of approval. WHEREAS, on July 27, 2010, pursuant to CEQA, the City Council, by Resolution No. 2010-27, certified the Final Environmental Impact Report ("FEIR") for the TSMDP, made the findings required by Public Resources Code Section 21081; adopted a Mitigation Monitoring Program; and adopted a Statement of Overriding Considerations for the TSMDP. WHEREAS, on October 21, 2010, the Planning Commission conducted a public hearing on Development Agreement 09-01 at the Grand Terrace Council Chambers located at 22795 Barton Road, Grand Terrace, California 92313, and concluded said hearing by voting 3-2 recommending,that the City Council adopt Development Agreement 09-01. WHEREAS, on November 9, 2010, the City Council of the City of Grand Terrace conducted a duly noticed public hearing on Development Agreement 09-01 at the Grand Terrace Council Chambers located at 22795 Barton Road, Grand Terrace, California 92313, and concluded the hearing on that date. WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred. c Page 2 of 4 NOW THEREFORE, it is hereby found, determined, and resolved by the City Council of the City of Grand Terrace, as follows: SECTION 1. The City Council hereby specifically finds that all of the facts set forth in the Recitals of this Ordinance, are true and correct. SECTION 2. The City Council hereby finds that pursuant to Section 15162 of CEQA, a subsequent EIR is not required for the Development Agreement because (1) no substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (2) no substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and (3) no new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified shows (a) that the project will have one or more significant effects not discussed in the previous EIR, (b) that the significant effects previously examined will be substantially more severe than shown in the previous EIR; (c) that mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, or (d) that mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment. SECTION 3. Based on substantial evidence presented to the City Council during the October 21, 2010 public hearing, including public testimony, and written and oral staff reports, the City Council finds as follows with regard to Development Agreement 09-01: a. The project site is designated as General Commercial (GC) in the City of Grand Terrace General Plan Land Use Map and BRSP-General Commercial in the Barton Road Specific Plan. In approving the TSMDP and related applications the City Council found that the Project is consistent with the provisions of the Grand Terrace General Plan, Zoning Code and Barton Road Specific Plan. The adoption of the proposed Development Agreement is also consistent with these provisions because the Development Agreement is intended to assist in the implementation of the TSMDP, a neighborhood commercial center consistent within the General Commercial Land Use designation, and the BRSP-General Commercial zoning designation _b. The proposed Development Agreement complies with the requirements of California Government Code Article 2.5, Development Agreements, Sections 65864 through 65869.5, including that the property owners are the appropriate authority to enter into a Development Agreement, annual monitoring is required n Page 3 of 4 by the agreement to demonstrate good faith compliance and progress, the contents of the agreement include the density, maximum building height, building size, and provisions for the reservation and dedication of land for public purposes and provisions to comply with the development standards in effect at the time, and the agreement contains provisions for enforcement, amendment, recordation, and suspension. Public hearings will be held on the Development Agreement prior to its adoption and findings of consistency can be made to approve the agreement. C. The proposed Development Agreement will not be physically detrimental to or cause adverse physical effects to adjacent property owners, residents, or the general public because the Agreement provides for improvement of the property in accordance with the adopted TSMDP and the certified EIR prepared for the TSMDP. SECTION 4. The City Council of the City of Grand Terrace hereby adopts Development Agreement,09-01, attached hereto as Exhibit 1. SECTION 5. The City Council declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion of it irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions of it be declared invalid or unconstitutional. If for any reason any portion of this ordinance is declared invalid or unconstitutional, then all other provisions shall remain valid and enforceable. SECTION 5. This Ordinance shall take effect thirty days from the date of adoption. SECTION 6. The City Clerk shall record Development Agreement 09-01 within ten days of the adoption of this Ordinance. SECTION 7. First read at a regular meeting of the City Council held on the Wh day of November, 2010 and finally adopted and ordered posted at a regular meeting of said City Council on the 141h day of December, 2010. 1� Page 4of4 ATTEST: City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace and of the City Council thereof. and of the City Council thereof. I, Brenda Mesa, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Ordinance was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 141h day of December, 2010, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Brenda Mesa, City Clerk Approved as to form: John Harper, City Attorney 1 9 Recorded at request of: ) Clerk, City Council ) City of Grand Terrace ) When recorded return to: ) City of Grand Terrace ) 22795 Barton Road ) Grand Terrace, CA 92313-5295 ) Attention: City Clerk ) Exempt from Filing Fees, Government Code Section 6103 DEVELOPMENT AGREEMENT A DEVELOPMENT AGREEMENT BETWEEN CITY OF GRAND TERRACE, A CALIFORNIA MUNICIPAL CORPORATION, and DENNIS D. JACOBSEN FAMILY HOLDINGS, A CALIFORNIA LIMITED LIABILITY COMPANY OR ASSIGNEE and STATER BROS. MARKETS, A CALIFORNIA CORPORATION OR ASSIGNEE [Adopted by Ordinance No. , Effective , 20101 Ts Development Agreement 1' December 1.4,2010 1' TS Development Agreement DEVELOPMENT AGREEMENT This Development Agreement ("Agreement") is entered into on the effective date of the adopting ordinance ("Effective Date") by and between the City of Grand Terrace, a California Municipal Corporation("CITY"), and Dennis D. Jacobsen Family Holdings, a California Limited Liability Company or Assignee and Stater Bros. Markets, a California Corporation, or Assignee (collectively"DEVELOPER"): r RECITALS WHEREAS, CITY is authorized to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property; and WHEREAS, DEVELOPER owns a legal and/or equitable interest in approximately 12.5 acres of land located south of Barton Road between Michigan Street and the Gage Canal, as described in the legal descriptions attached hereto as Exhibit "A" (the "Property"); and WHEREAS, pursuant to the CITY's General Plan and the Barton Road Specific Plan, DEVELOPER desires to develop on the Property a commercial center of approximately 210,000 square feet of building area, known as the Grand Terrace Town Square (the "Project"), as further described in the Grand Terrace Town Square Master Development Plan (the "TSMDP") and related Project Approvals and Development Approvals described herein; and I WHEREAS, DEVELOPER has requested CITY to enter into a development agreement and proceedings have been taken in accordance with the rules and regulations of CITY; and WHEREAS,by electing to enter into this Agreement, CITY shall bind future City Councils of CITY by the obligations specified herein and limit the future exercise of certain governmental and proprietary powers of CITY; and WHEREAS, the terms and'conditions of this Agreement have undergone review by CITY, its Planning Commission and the City Council and have been found to be fair,just and reasonable; and WHEREAS, the best interests of the citizens of the CITY and the public health, safety and welfare will be served by entering into this Agreement; and WHEREAS, in connection with its approval of the Project entitlements, CITY has taken several actions collectively referred to as the "Project Approvals," which include, without limitation, the following: i. Final Environmental Impact Report. On July 27, 2010, pursuant to CEQA, the City Council, by Resolution No. 2010-27, certified the Final Environmental Impact Report for the Project (the "FEIR"), made the findings required by Public Resources Code Section 21081; FS Development Agreement -2- December 14.2010 TS Development Agreement adopted a Mitigation Monitoring Program for the Project; and adopted a Statement of Overriding Considerations. 2. Grand Terrace Town Square Master Development Plan. The TSMDP proposes commercial development on properties totaling approximately 20.83 acres, with approximately 210,000 square feet of commercial uses to be constructed within the Project area in five (5) phases or "Development Units". On July 27, 2010, by Resolution No. 2010-28, the City Council adopted the Site and Architectural Review 07-12/Town Square Master Development Plan; the Master Development Sign Program 09-01; the Sign Program for Development Unit 1; Site and Architectural Review 07-07; and their related conditions of approval. Entitlements for subsequent Development Units (2 through 4); to the extent they are consistent with the TSMDP, will be approved subject to the CITY's Site Plan and Architectural Review Process, and Conditional Use Permit process where specified by the TSMDP. 3. Tentative Parcel Map No. 17787 (08-01). On July 27, 2010, by Resolution No. 2010=30, the City Council approved the Tentative Parcel Map for Phases 1 and 2 of the Project (Development Units 1 and 2 of the TSMDP), and related conditions of approval. WHEREAS, this Agreement and the Project are consistent with the CITY's Comprehensive General Plan and the Barton Road Specific Plan(BRSP-03091 and E-03-08); and WHEREAS, all actions taken and approvals given by CITY have been duly taken or approved in accordance with all applicable legal requirements for notice, public hearings, findings, votes, and other procedural matters; and WHEREAS, development of the Property in accordance with this Agreement will provide substantial benefits to CITY and will further important policies and goals of CITY; and WHEREAS, this Agreement will eliminate uncertainty in planning and provide for the orderly development of the Property, ensure progressive installation of necessary improvements, provide for public services appropriate to the development of the Project, and generally serve the purposes for which development agreements under Sections 65864 et seq. of the Government Code are intended; and WHEREAS, DEVELOPER has incurred and will in the future incur substantial costs in order to assure development of the Property in accordance with this Agreement; and WHEREAS, DEVELOPER has incurred and will in the future incur substantial costs in excess of the generally applicable requirements in order to assure vesting of legal rights to develop the Property in accordance with this Agreement. TS Development Agreement - December 1.1.2010 TS Development Agreement COVENANTS NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. DEFINITIONS AND EXHIBITS. ( 1.1 Definitions. The following terms when used in this Agreement shall be defined as follows: 1.1.1"Agreement"means this Development Agreement. 1.1.2"CITY" means the City of Grand Terrace, a municipal corporation, organized and existing pursuant to the laws of the State of California. 1.1.3"DEVELOPER" means the persons and entities listed as DEVELOPER on page 1 of this Agreement and their successors in interest to all or any part of the Property. 1.1.4"Development"means the improvement of the Property for the purposes of completing the structures, improvements and facilities comprising the Project including,but not limited to: grading; the construction of required infrastructure and public I, facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation of landscaping. "Development" does not include the maintenance, repair, reconstruction or redevelopment of any building, structure, improvement or facility after the construction and completion thereof. 1.1.5"Development Agreement Policies" means any and all applicable development agreement policies of the CITY in effect at the time of this Agreement. 1.1.6"Development Approvals" means all permits and other entitlements for use subject to approval or issuance by the CITY in connection with the Project Approvals and development of the Property consistent with the MDP and this Agreement. 1.1.7"Development Exaction" means any requirement of CITY in connection with or pursuant to any Land Use Regulation or Development Approval for the dedication of land, the construction of improvements or public facilities, or the payment of fees in order to lessen, offset, mitigate or compensate for the impacts of development on the environment or other public interests. 1.1.8"Development Impact Fee" a monetary exaction other than a tax or special assessment that is charged by a local agency to the applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project, including capacity or connection fees adopted and TS Development Agreement -4- December 14.2010 TS Development Agreement collected by utility service providers, but does not include fees for processing applications for governmental regulatory actions or approvals, or fees collected under development agreements adopted pursuant to Article 2.5 of the Government Code of Chapter 4. 1.1.9 Effective Date" means the date the ordinance approving this Agreement becomes effective. 1.1.10 "Existing Development Approvals" means all Development Approvals approved or issued prior to the Effective Date. Existing Development Approvals includes the Project Approvals incorporated herein as Exhibit"C" and all other approvals which are a matter of public record on the Effective Date. 1.1.11 "Existing Land Use Regulations"means all Land Use Regulations in effect and applicable to the Project on the Effective Date. Existing Land Use Regulations includes the Regulations incorporated herein as Exhibit"D" and all other Regulations which are a matter of public record and applicable to the Project on the Effective Date. 1.1.12 "Land Use Regulations"means all ordinances, resolutions, codes, rules, regulations and official policies of CITY governing the development and use of land, and the design, improvement and construction standards and specifications applicable to the development of the property. "Land Use Regulations" does not include any CITY ordinance, resolution, code, rile, regulation or official policy, governing: (a) the conduct of businesses, professions, and occupations; (b) taxes and assessments; (c) the control and abatement of nuisances; (d) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; (e) the exercise of the power of eminent domain. 1.1.13 "Master Development Plan(TSMDP)" means the Grand Terrace Town Square Master Development Plan, including, without limitation, those Existing Development Approvals and the Existing Land Use Regulations applicable to development of the Property. 1.1.14 "Mortgagee" means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security-device lender, and their successors and assigns. 1.1.15 "Project" means the development of the Property contemplated by the TSMDP and the Project Approvals. FS Development Agreement December 14.2010 .7 A TS Development Agreement 1.1.16 "Property" means the real property described on Exhibit"A" and shown on Exhibit"B" to this Agreement. 1.1.17 "Reservations of Authority" means the rights and authority excepted from the assurances and rights provided to DEVELOPER under this Agreement and reserved to CITY tinder Subsection 4.7 of this Agreement. 1.1.18 "Subsequent Development Approvals" means all Development Approvals required subsequent to the Effective Date in connection with development of the Property, including, particularly, Site and Architectural Review approvals required for development of Phases 2 through 4 (Development Units 2 through 4) of the TSMDP. 1.1.19 "Subsequent Land Use Regulations"means any Land Use Regulations adopted and effective after the Effective Date of this Agreement. 1.1.20 "Vesting Date" means the Effective Date of this Agreement. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: Exhibit"A"—Legal Description of the Property. Exhibit"B"—Project Site Plan. Exhibit"C"—Existing Development Approvals Exhibit"D"—Existing Codes and Land Use Regulations Exhibit"E"—Development Impact Fees ("E-1") and Credits/Reimbursement ("E-2"). Exhibit "F" —Development Incentive Bonus 2. MUTUAL BENEFITS. This Agreement is entered into for the purpose of implementing the TSMDP for the Project in a manner that will secure certain assurances to the DEVELOPER that the Property may be developed in accordance with the TSMDP, the Project Approvals, and this Agreement, and certain benefits to the CITY as set forth in this Agreement. The CITY and the DEVELOPER agree that, due to the current economic conditions, the size and duration of the Project, this Agreement is necessary to achieve those desired benefits. The following non- exclusive list of public benefits and objectives has been met for the Project: (a) The DEVELOPER has successfully acquired and consolidated properties to largely eliminate conflicting residential land uses including a trailer park, and the TSMDP fS Development Agreement -6- December 14 '_OIU 47 TS Development Agreement provides for the orderly development of a major commercial center, commencing with the construction of a major grocery store anchor; (b) The TSMDP accomplishes the goals and objectives of the Barton Road Specific Plan providing a comprehensive land use plan to assist the City in achieving the full economic potential of the Barton Road commercial corridor, by consolidating a number of narrow parcels within a single master planned commercial center with uniform architectural plans and signage; (c) The TSMDP provides a programmatic land use plan with an attractive urban design theme, which establishes a "village character" with architectural design which will upgrade the physical image of the Barton Road commercial corridor; (d) The TSMDP provides an integrated commercial center with public amenities, shared access and reciprocal parking; and (e) With its unified on-site and off-site master sign program, the TSMDP will result in recaptured retail sales leakage to surrounding communities, including both local and community level goods and services. 3. GENERAL PROVISIONS. 3.1 Binding Effect of Agreement. The Property is hereby made subject to this Agreement. Development of the Property is hereby authorized and shall be carried out only in accordance with the terms of this Agreement. 3.2 Ownership of Property. DEVELOPER represents and covenants that it is the legal and/or equitable owner of the fee simple title to the Property or a portion thereof. 3.3 Applicable Law. Except as otherwise specifically provided in this Agreement, the rules, regulations, ordinances, resolutions, official policies, standards and specifications of CITY, in force and effect on the Vesting Date (the "Applicable Law") shall be applied to the Project. 3.4 Vesting of General Assessments and Fees. DEVELOPER shall be required to only pay those Development Impact Fees contained in Exhibit"E-1" hereto and incorporated herein, and subject to the credits set forth in Exhibit "E-2", hereto and incorporated herein, during the first five (5) years of the term of this Agreement. Thereafter, DEVELOPER shall be required to pay all applicable Development Impact Fees. Except as to Development Impact Fees, CITY shall not impose any additional Development Exactions, except with the express written approval of the DEVELOPER. DEVELOPER shall be obligated to pay all other building permit and processing fees contained in Existing Land Use Regulations, as such, may be from time to time amended. N Dnelopment Agreement -7- December 14,1010 �a TS Development Agreement 3.5 Timely Processing. CITY shall timely process and grant all applications for Subsequent Development Approvals that DEVELOPER deems necessary or desirable for the efficient, orderly and economical development and use of the Project, provided all non- discretionary requirements of Applicable Law are satisfied. 3.6 Permitted Uses Vested by.this Agreement. The permitted uses of the Property and other terms and conditions of development applicable to the Project, shall be as set forth in the Project Approvals, the TSMDP, the Subsequent Development Approvals, Existing Land Use Regulations, and this Agreement. 3.7 Protection of Vested Rights. To the maximum extent permitted by law, CITY shall take any and all actions necessary to ensure that DEVELOPER secures and benefits from the vested rights provided by this Agreement and prevent any CITY law, ordinance resolution, rule, regulation, standard, directive, condition, fee, dedication; exaction, approval, issuance, permit, zone change, amendment, land use change, or other measure (collectively referred to herein as "City Law") from invalidating or prevailing over, all or any part of this Agreement or Applicable Law. 3.8 No Conflicting Enactments. CITY shall not impose on the Project or otherwise approve any City Law that is in conflict with Applicable Law or this Agreement or that reduces the development rights provided by this Agreement. 3.8.1 Deemed Conflicts. Without limiting the generality of the foregoing, any City Law or approval shall be deemed to conflict with Applicable Law if it conflicts with or reduces or delays the development rights and covenants provided by this Agreement. 3.9 Initiatives, Referenda and Moratoria. 3.9.1 Conflicting Laws. If any City Law is enacted or imposed by initiative or referendum by the City Council, the electorate that would conflict with Applicable Law or this Agreement, or reduce the development rights provided by this Agreement, such City Law shall not apply to the Project. 3.9.2No Growth Moratoria or Restrictions. Without limiting the foregoing, and in particular the provisions of this Article 2, no moratorium, growth management restriction, or sequencing of development affecting the subdivision maps, building permits or other entitlements that are approved or to be approved, issued or granted by CITY, shall apply to the Project. 3.9.3 Cooperation. To the maximum extent permitted by law, CITY shall cooperate with DEVELOPER and shall undertake such actions as may be necessary to ensure this Agreement remains in full force and effect. TS Development Agreement - December 14.2010 1 TS Development Agreement 3.9.4 No Actions to Violate. CITY shall not support, adopt or enact any City Law, or take any other action, which would violate the provisions of this Agreement or the Project Approvals. 3.9.5 Further CEQA Review and Environmental Mitigation. The FEIR for the Project was prepared following the completion of numerous studies. The FEIR is intended to be used in connection with each of the Project Approvals and Subsequent Development Approvals needed for the Project. Consistent with the CEQA policies and requirements - applicable to the FEIR and to the maximum extent allowed by law, CITY shall use the FEIR for Subsequent Development Approvals consistent with this Agreement and the-Project Approvals and shall not impose on any Subsequent Development Approvals or on the Project any mitigation measures, other than those specifically imposed as conditions of the Project Approvals and those identified in the FEIR. 3.9.6 Life of Subdivision Maps, Development Approvals and Permits. The term of each Project Approval and Subsequent Development Approval shall automatically be extended for the longer of the term of this Agreement or the term otherwise applicable to such Approval if this Agreement were no longer in effect. Further, in accordance with the provisions of Government Code Section 66452.6, tentative subdivision maps or tentative parcel maps heretofore or hereafter approved in connection with development of the Property shall be granted an extension of time for the term of this Agreement, including extensions, to the maximum permitted by law without further review or approval required from the CITY. 3.9.7 Review of Subsequent Development Approval Applications. CITY shall review and act on applications for Subsequent Development Approvals in accordance with CITY's then existing or new rules,regulations and policies. CITY may approve an application for a Subsequent Development Approval subject to any conditions necessary to bring the Subsequent Development Approval into compliance with then current law. Any such specified modifications must be consistent with then existing CITY rules, regulations and policies and this Agreement. 3.9.8 State and Federal Law. This Agreement shall not preclude the application to the Project of changes in laws, regulations, plans or policies, to the extent that such changes are specifically mandated and required by changes in State or Federal laws or regulations to preserve the immediate public health and safety("Changes in the Law"). As provided in Section 65869.5 of the Government Code, in the event Changes in the Law prevent or preclude compliance with one or more provisions of this Agreement, such provisions of the Agreement shall be modified or suspended, or performance thereof delayed, as may be necessary to comply with Changes in the Law. 3.10 Term of Agreement. The initial term of this Agreement shall commence on the Effective Date, and shall continue for a period of Eight (8) years thereafter unless this term is modified or extended pursuant to the provisions of this Agreement. Notwithstanding the foregoing, the term of this Development Agreement may be extended subject to approval of the TS Development Agreement -Q- December 14,2010 TS Development Agreement City Council for two terms of five (5) additional years, for land use approvals only, following expiration of the initial term, provided the following have occurred: 3.10.1 DEVELOPER provides at least one hundred eighty (180) days written notice to CITY prior to the expiration of the initial term; 3.10.2 DEVELOPER.shall have completed construction and been issued a certificate of occupancy for the grocery store anchor for Development Unit 1 of the commercial �1 development contemplated by the Project; and 3.10.3 DEVELOPER is not then in uncured default of this Agreement. 3.11 Timing of Project Construction and Completion. 3.11.1 No requirement. Subject to the requirements of Grand Terrace Municipal Code Chapter 8.04, DEVELOPER is not required to initiate or complete development of the Project or any particular phase (or Development Unit) of the Project within any particular period of time, and CITY shall not impose such a requirement on any Project Approval or Subsequent Development Approval. Notwithstanding any terms stated above,provided that once construction of a phase(or Development Unit) of the Project has begun, DEVELOPER shall complete any public infrastructure related to that phase. - 3.11.2 Timing. Except as set forth in Subsection 3.11.1 above, DEVELOPER may develop in accordance with its own time schedule and DEVELOPER shall determine which part of the Property to develop first, all within the exercise of its subjective business judgment. Subsequently adopted ordinances, resolutions, and initiatives purporting to relate to, restrict or control the timing of the Project shall not apply to the Project and shall not prevail over this Agreement 3.12 Subdivision and Other Agreements. Nothing in this Agreement shall exempt DEVELOPER from completing work required by a subdivision agreement or similar agreement in accordance with the terms thereof. CITY shall not require more work by DEVELOPER than is required by this Agreement or the Project Approvals. 3.13 Assignment. 3.13.1 Right to Assign. DEVELOPER shall have the right to sell, transfer or assign the Property in whole or in part, to any person, partnership,joint venture, firm or corporation at any time during the term of this Agreement; provided, however, that any such sale, transfer or assignment shall include the assignment and assumption of the rights, duties and obligations arising under or from this Agreement and be made in strict compliance with the following condition precedent: TS Do elopment Agreement -10- December 14 010 -�e TS Development Agreement (a) No sale, transfer or assignment of any right or interest under this Agreement shall be made unless made together with the sale, transfer or assignment of all or a part of the Property. (b) Fifteen (15) business days prior to any such sale, transfer or assignment, DEVELOPER shall notify CITY, in writing, of such sale, transfer or assignment and shall provide CITY with an executed agreement, in a form reasonably acceptable to CITY, by the purchaser, transferee or assignee and providing therein that the purchaser, transferee or assignee expressly and unconditionally assumes all the duties and obligations of DEVELOPER under this Agreement. (c) To the extent the sale, transfer or assignment complies with the conditions set forth in(a) and (b) hereinabove, and that the purchaser, transferee or assignee have the financial wherewithal, background and experience to perform the duties and obligations required by this Agreement as reasonably determined by the CITY, the CITY shall approve the sale, transfer or assignment in writing, which approval shall not unreasonably be withheld, conditioned or delayed. The sale, transfer or assignment of this Agreement shall be deemed approved by City if not confirmed in writing within 30 days following City's receipt of notice pursuant to subsection(b). Any sale, transfer or assignment not made in strict compliance with the foregoing conditions shall constitute a default by DEVELOPER under this Agreement. Notwithstanding the failure of any purchaser, transferee or assignee to execute the agreement required by Paragraph(b) of this Subsection 3.13.1, the burdens of this Agreement shall be binding upon such purchaser, transferee or assignee,but the benefits of this Agreement shall not inure to such purchaser, transferee or assignee until and unless such agreement is executed. 3.13.2 Release of Transferring DEVELOPER. Upon any sale, transfer or assignment made pursuant to this Agreement, a transferring DEVELOPER shall no longer be obligated under this Agreement upon the full satisfaction by such transferring DEVELOPER of the following conditions: (a) DEVELOPER no longer has a legal or equitable interest in all or any part of the Property. (b) DEVELOPER has provided CITY with the notice and executed agreement required under Paragraph (b) of Subsection 3.13.1 above. (c) The purchaser, transferee or assignee provides CITY with security equivalent to any security previously provided by DEVELOPER to secure performance of its obligations hereunder. 3.13.3 Subsequent Assi.vnment. Any subsequent sale, transfer or assignment following an initial sale, transfer or assignment shall be made only in accordance with and subject to the terms and conditions of this Section. TS Development Agreement 11- December 14.2O10 TS Development Agreement 3.13.4 Partial Release of Purchaser, Transferee or Assignee of Commercial Parcel. A purchaser, transferee or assignee of a parcel, which has been finally subdivided and for which a commercial plot plan for development of the parcel has been finally approved pursuant to the TSMDP, may submit a request, in writing, to CITY to release said parcel from the obligations under this Agreement relating to all other portions of the Property. Within thirty(30) days of such request, CITY shall review, and if the above conditions are satisfied shall approve the request for release and notify the purchaser, transferee or assignee in writing thereof. No such release approved pursuant to this Subsection 3.13.4 shall cause, or L,t otherwise affect, a release of DEVELOPER from its duties and obligations under this Agreement, unless DEVELOPER has satisfied the requirements of Subsection 3.13.2 of this Section. 3.13.5 Termination of Agreement With Respect to Individual Parcels Upon Sale to Public and Completion of Construction. The provisions of Subsection 3.13.1 shall not apply to the sale or lease(for a period longer than one year) of any parcel which has been finally subdivided and is individually(and not in"bulk") sold or leased. Notwithstanding any other provisions of this Agreement, this Agreement shall terminate with respect to any parcel and such parcel shall be released and no longer be subject to this Agreement without the execution or recordation of any further document upon satisfaction of both of the following conditions: (a) The parcel has been finally subdivided and individually(and not in "bulk") sold or leased (for a period longer than one year); and, (b) A Certificate of Occupancy has been issued for a building on the parcel, and the fees set forth under Section 4 of this Agreement have been paid. 3.14 Amendment or Cancellation of Agreement. This Agreement may be amended or canceled in whole or in part only by written consent of all parties. This provision shall not limit any remedy of CITY or DEVELOPER as provided by this Agreement. 3.15 Termination. This Agreement shall be deemed terminated and of no further effect upon the occurrence of any of the following events: (a) Expiration of the stated term of this Agreement as set forth in Subsection 3.11. (b) Entry of a final judgment setting aside, voiding or annulling the adoption of the ordinance approving this Agreement. (c) The adoption of a referendum measure overriding or repealing the ordinance approving this Agreement. (d) Completion of the Project in accordance with the terms of this Agreement including issuance of all required occupancy permits and acceptance by CITY or applicable public agency of all required dedications. TS Development Agreement -1 2- December 14.2010 'f� TS Development Agreement (e) Termination of this Agreement based on any default of DEVELOPER and following the termination proceedings required pursuant to any development agreement policies and procedures adopted by the CITY and in force and effect on the Effective Date. Termination of this Agreement shall not constitute termination of any other land use entitlements approved for the Property. Upon the termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to any obligation to have been performed prior to such termination or with respect to any default in the performance of the provisions of this Agreement which has occurred prior to such termination or with respect to any obligations which are specifically set forth as surviving this Agreement. Upon such termination, any public facilities and services mitigation fees paid pursuant to Section 4 of this Agreement by DEVELOPER to CITY for commercial development on which construction has not yet begun shall be refunded to DEVELOPER by CITY. 3.16 Notices. 3.16.1 As used in this Agreement, "notice"includes,but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. 3.16.2 All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or(ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or(iii) on the date of delivery shown in the records of the telegraph company after transmission by telegraph to the recipient named below. All notices shall be addressed as follows: If to CITY: John R. Harper, City Attorney City of Grand Terrace Harper& Burns 22795 Barton Road 453 Glassell Street Grand Terrace, CA 92313-5295 Orange, CA 92666 Attn: City Manager Telephone: (714) 771-7728 Telephone: (909) 430-2226 Facsimile: (714) 744-3350 Facsimile: (909) 783-2600 Copy to: Joyce Powers, Community and Economic Development Director r5 Development Agreement -13- December 14,2010 TS Development Agreement If to DEVELOPER: Sean Varner, Esq. Stater Bros. Markets Varner& Brandt, LLP 301 South Tippecanoe Ave. 3750 University Avenue, Suite 610 San Bernardino, CA 92408 Riverside, CA 92501-3323 Telephone: (909) 733-5002 Telephone: (951) 274-7777 Facsimile: (909) 733-4002 Facsimile: (951) 274-7770 Attn: Mike Slaton Copy to: Jacobsen Family Holdings, LLC 21800 Burbank Blvd., Suite 330 Woodland Hills, CA 91367 Telephone: (818) 251-9911 Facsimile: (818) 251-9912 Attn: Douglas Jacobsen 3.16.3 Either party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt J `1 of notice of change shall not be invalidated by the change. 4. PROJECT DEVELOPMENT. 4.1 Rights to Develop. Subject to the terms of this Agreement, including the Reservations of Authority, DEVELOPER shall have a vested right to develop the Property in accordance with, and to the extent of, the TSMDP. The Project shall remain subject to all Subsequent Development Approvals required to complete the Project as contemplated by the TSMDP. 4.2 Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement, including the Reservations of Authority, the rules, regulations and official policies governing permitted uses of the Property, the.density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable to development of the Property shall be the Existing Land Use Regulations. In connection with any Subsequent Development Approval, CITY shall exercise its discretion in accordance with the TSMDP pursuant to the CITY's Site and Architectural Review process and Conditional Use Permit process where specified by the TSMDP, and as provided by this Agreement including,but not limited to, the Reservations of Authority. 4.3 Master Development Plan. It is the intent of the parties that DEVELOPER shall commence development of the Project on or after the Effective Date in TS Development Agreement -1 4- December 14 2010 TS Development Agreement accordance with the Project Approvals. The Project shall be developed and completed in conformance with the Project Approvals and any and all other plans, specifications and similar development documents required by this Agreement, except for such changes as may be mutually agreed upon in writing by and between DEVELOPER and CITY. CITY agrees to approve preliminary and construction plans and preliminary and landscaping plans, if consistent with the Project Approvals, subject only to CITY's Site and Architectural Review process or Conditional Use Permit process where specified by the TSMDP. 4.3.1 DEVELOPER to Obtain all Project Approvals. For each phase of the Project subsequent to Development Unit 1, DEVELOPER shall prepare and submit complete development applications and any other required application, document, fee, charge or other item (including, without limitation, deposit, fund or surety) required for construction or installation of the Project, pursuant to all Applicable Laws and Project Approvals. 4.3.2 Project Changes. If any revisions to the Project are required by a governmental body, DEVELOPER shall promptly make any such revisions that are (i) generally consistent with the scope of development, (ii) would not result in any material additional improvements not identified in the approved TSMDP, Project Approvals and Subsequent Development Approvals; and(iii) would not impose any material financial burden on the Project, without DEVELOPER's written consent thereto. 4.3.3 Conditions of Approval. Notwithstanding any provision to the contrary in this Agreement, DEVELOPER agrees to accept and comply fully with any and all reasonable conditions of approval applicable to any approvals, permits or other governmental actions regarding the construction or installation of the Project that are both: (i) consistent with this Agreement and (ii) would not result in any material additional improvements not identified in the approved TSMDP, Project Approvals and Subsequent Development Approvals. 4.3.4 Payment of Costs and Fees. DEVELOPER and CITY agree that CITY has not provided and shall not provide any financial assistance or incentive to DEVELOPER in connection with the construction or installation of the Project. 4.4 DEVELOPER Changes to Project Plans and Specifications During Course of Construction. DEVELOPER shall have the right, during the course of construction of the Project, to make "minor field changes," with CITY approval, if such changes do not affect the type of use to be conducted within all or any portion of a structure. "Minor field changes" shall be defined as those changes from the approved construction drawings, plans and specifications included in the Project Site Plan and Project Approvals that have no reasonable effect on the Project and are made in order to expedite the work of construction in response to field conditions. Nothing contained in this Subsection 4.4 shall be deemed to constitute a waiver of or change in any approvals governing any such minor field changes or in any approvals by any government body otherwise required for any such minor field changes. However, in no case, may field changes be made to any aspect of the Project Site Plan and I'S Development Agreement -1>- December 14,2010 TS Development Agreement Project Approvals for which Incentive Bonus Points, as identified in Exhibit"F", were granted. 4.5 Timing of Development. The parties acknowledge that DEVELOPER cannot at this time predict when or the rate at which phases of the Property will be developed. Such decisions depend upon numerous factors which are not within the control of DEVELOPER, such as market orientation and demand, interest rates, absorption, completion and other similar factors. The DEVELOPER shall have the right to develop the Property in l� such order and at such rate and at such times as DEVELOPER deems appropriate within the exercise of its subjective business judgment, subject only to any timing or phasing requirements set forth in the TSMDP which are required in order to provide for the orderly development of the Property. 4.6 Changes and Amendments. The parties acknowledge that refinement and further development of the Project will require Subsequent Development Approvals and may demonstrate that changes are appropriate and mutually desirable in the Project Approvals, subject to the following: 4.6.1 Minor Changes and Adiustments. If and when the parties find that minor changes or adjustments are necessary or appropriate to the Project or the TSMDP, they shall, unless otherwise required by law, effectuate such changes or adjustments through administrative amendments approved by the City Manager, which, after execution, shall be attached hereto addenda and become a part hereof, and may be further changed and amended from time to time as necessary, with approval by the City Manager as may be requested by DEVELOPER. Minor changes or adjustments shall be those which are consistent with the overall intent of the TSMDP and this Agreement and which'do not materially alter the overall land uses, nature, scope, intensity of development, or design of the Project. 4.6.2 Unless otherwise required by law, as determined in CITY's reasonable discretion, a change to the Project Approvals shall be deemed"minor" and not require an amendment to this Agreement provided such change does not: (a) Alter the permitted uses of the Property as a whole; or, (b) Significantly increase the density or intensity of use of the Property as a whole; or, (c) Significantly increase the maximum height and size of permitted buildings; or, delete a requirement for the reservation or dedication of land for public purposes within the Property as a whole; or, (d) Constitute a project requiring a subsequent or supplemental environmental impact report pursuant to Section 21166 of the Public Resources Code. TS Development Agreement -16- December 14.-10I0 TS Development Agreement (e) Impact the design quality which was a basis for Incentive Bonus Points described in Exhibit "F" as determined by the City Manager. 4.7 Reservations of Authority. 4.7.1 Limitations, Reservations and Exceptions. Notwithstanding any other provision of this Agreement, the following Subsequent Land Use Regulations shall apply to the development of the Property: (a) Processing fees and charges of every kind and nature imposed by CITY to cover the estimated actual costs to CITY of processing applications for Development Approvals or for monitoring compliance with any Development Approvals granted or issued. (b) Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure, except as specifically set forth in the Barton Road Specific Plan and this Agreement, and applicable to the Project on the Effective Date. (c) Regulations governing construction standards and specifications including, without limitation, the CITY's Building Code, Plumbing Code, Mechanical Code, Electrical Code, Fire Code and Grading Code. (d) Regulations which may be in conflict with the TSMDP but which are reasonably necessary to protect the public health and safety. To the extent possible, any such regulations shall be applied and construed so as to provide DEVELOPER with the rights and assurances provided under this Agreement. (e) Regulations which are not in conflict with the TSMDP, the Project Approvals or Subsequent Project Approvals. Any regulation whether adopted by initiative or otherwise, limiting the rate or timing of development of the Property shall be deemed to conflict with the TSMDP and shall therefore not be applicable to the development of the Property. (f) Regulations which are in conflict with the TSMDP provided DEVELOPER has given written consent, in its sole and absolute discretion, to the application of such regulations to development of the Property. 4.7.2 Subsequent Development Approvals. This Agreement shall not prevent CITY, in acting on Subsequent Development Approvals, from applying Subsequent Land Use Regulations which do not conflict with the TSMDP, the Project Approvals or this Agreement, nor shall this Agreement prevent CITY from denying or conditionally approving any Subsequent Development Approval on the basis of the Existing Land Use Regulations or any Subsequent Land Use Regulation not in conflict with the TSMDP, this Agreement or the Project Approvals. 7S Development Agreement -17- December 14.20l0 �r TS Development Agreement 4.7.3 Modification or Suspension by State or Federal Law. In the event that State or Federal laws or regulations, enacted after the Effective Date of this Agreement, prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations; provided, however, that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions impractical to enforce. 4.7.4Intent. The parties acknowledge and agree that CITY is restricted in its authority to limit its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to CITY all of its police power which cannot be so limited. This Agreement shall be construed, contrary to its stated terms if necessary, to reserve to CITY all such power and authority which cannot be restricted by contract. 4.8 Public Works. If DEVELOPER is required by this Agreement to construct any public works facilities which will be dedicated to CITY or any other public agency upon completion, and if required by applicable laws to do so, DEVELOPER shall perform such work in the same manner and subject to the same requirements as would be applicable to CITY or such other public agency should it have undertaken such construction. l' 4.9 Life of Subdivision Maps, Development Approvals and Permits. The term of each Project Approval and Subsequent Approval, including without limitation, subdivision maps, shall automatically be extended for the longer of the term of this Agreement (including any extensions) or the term otherwise applicable to such Approval if this Agreement were no longer in effect. The�term of this Agreement shall be extended by a time period equal to the sum of any periods of time during which a development moratorium, as defined in section 66452.6(f) of the Subdivision Map Act, is in effect. 4.10 Vesting Tentative Maps. If any tentative or final subdivision map, or tentative or final parcel map, heretofore or hereafter approved in connection with development of the Property, is a vesting map under the Subdivision Map Act and if this Agreement is determined by a final judgment to be invalid or unenforceable insofar as it grants a vested right to develop to DEVELOPER, then and to that extent the rights and protections afforded DEVELOPER under the laws and ordinances applicable to vesting maps shall supersede the provisions of this Agreement. Except as set forth immediately above, development of the Property shall occur only as provided in the TSMDP and this Agreement, and the provisions in this Agreement shall be controlling over any conflicting provision, including a provision of law or ordinance concerning vesting maps. 4.11 Utilities. The Project shall be connected to all utilities necessary to provide adequate water, sewer, gas, electric, and other utility service to the Project. DEVELOPER shall contract with the CITY for CITY-owned or operated utilities serving the Project for such prices and on such terms as may be mutually agreed to between the parties. TS Development Agreement -t s- December 1 4.2010 �n TS Development Agreement 4.12 Development Impact Fees. 4.12.1 Amount and Components of Fee. The Development Impact Fees applicable to the Project shall be those fees set forth in Exhibit "E-1" hereto, subject to the credits/reimbursement set forth in Exhibit "E-2" hereto. 4.12.2 Time of Payment. The fees required to be paid by DEVELOPER pursuant to this Agreement shall be paid to CITY prior to the issuance of the applicable building permit for each commercial unit. 4.13 Credit. 4.13.1 The CITY acknowledges that the DEVELOPER may be required to pay certain fees, assessments and exactions which may be expended for certain public improvements and other public benefits, or to construct certain public improvements which will benefit lands within the CITY outside the Property. 4.13.2 The CITY shall credit DEVELOPER in accordance with Exhibit "E-2" herein. 4.14 Development Incentive Bonuses 4.14.1 Pursuant to the Barton Road Specific Plan and the Project Approvals; the CITY has granted development incentive bonuses based upon the overall merits of the Project. The Project successfully consolidates multiple parcels and provides an integrated plan, architecture and signage for development of Master Plan Area 1 of Planning Area 1 of the Barton Road Specific Plan, and provides a number of other features and amenities which exceed the CITY's development standards and standards of the Barton Road Specific Plan, such that the Project qualifies for Incentive Bonuses or Bonus Points in the form of relaxations of development regulations, approved through the CITY's Site and Architectural Review process. The Project Approval on July 27,2010 include a determination that the Project is entitled to Incentive Bonuses or Bonus Points, which may be used by the DEVELOPER for Development Units 1 through 4, as more specifically set forth on Exhibit 11F.11 5. REVIEW FOR COMPLIANCE. 5.1 Periodic Review. The Community and Economic Development Director shall review this Agreement periodically as required by law, in order to ascertain the good faith compliance by DEVELOPER with the terms of the Agreement. rS Development Agreement -19- December 14 2010 TS Development Agreement 5.2 Procedure. 5.2.1 During any periodic review, DEVELOPER may be required to demonstrate good faith compliance with the terms of the Agreement. The burden of proof on this issue shall be on DEVELOPER. 5.2.2 Upon completion of any periodic review, the Community and Economic Development Director shall submit a report to the City Council of the CITY, setting forth the evidence concerning good faith compliance by DEVELOPER with the terms of this Agreement and his or her recommended finding on that issue. 5.2.3 If the City Council of the CITY finds on the basis of substantial evidence that DEVELOPER has complied in good faith with the terms and conditions of this Agreement, the review shall be concluded. 5.2.4If the City Council of the CITY makes a preliminary finding that DEVELOPER has not complied in good faith with the terms and conditions of this Agreement,the CITY may pursue any remedy at law or equity for the breach of any provision of this Agreement. 6. DEFAULT AND REMEDIES. Remedies in General. In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement. 6.1 Specific Performance. The parties acknowledge that money damages and remedies at law generally are inadequate and specific performance and other non-monetary relief are particularly appropriate remedies for the enforcement of this Agreement and should be available to all parties, based on the following: (a) Due to the size, nature and scope of the project, it may not be practical or possible to restore the Property to its natural condition once implementation of this Agreement has begun. After such implementation, DEVELOPER may be foreclosed from other choices it may have had to utilize the Property or portions thereof. DEVELOPER has invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement, and it is not possible to determine the sum of money which would adequately compensate DEVELOPER for such efforts. 6.2 Termination or Modification of Agreement for Default of DEVELOPER. CITY may terminate or modify this Agreement for any failure of DEVELOPER to perform any material duty or obligation of DEVELOPER under this Agreement, or to comply in good faith with the terms of this Agreement (hereinafter referred to as "default"); provided, however, CITY may terminate or modify this Agreement pursuant to this Section only after TS Development Agreement -20- December 1.3.2010 TS Development Agreement providing written notice to DEVELOPER of default setting forth the nature of the default and the actions, if any, required by DEVELOPER to cure such default and, where the default can be cured, DEVELOPER has failed to take such actions and cure such default within sixty(60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty(60) day period and to diligently proceed to complete such actions and cure such default. 6.3 Termination of Agreement for Default of CITY. DEVELOPER may terminate this Agreement only in the event of a default by CITY in the performance of a material term of this Agreement and only after providing written notice to CITY of default setting forth the nature of the default and the actions, if any, required by CITY to cure such default and, where the default can be cured, CITY has failed to take such actions and cure such default within sixty(60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty(60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default. 7. THIRD PARTY LITIGATION. 7.1 General Plan and/or Barton Road Specific Plan Litigation. CITY has determined that this Agreement is consistent with its General Plan and the Barton Road Specific Plan (collectively referred to as the "General Plan"), and that the General Plan meets all requirements of law. DEVELOPER has reviewed the General Plan and concurs with CITY's determination. 7.2 Third Party Litigation Concerning Agreement. DEVELOPER shall defend, at its expense, including attorneys' fees, indemnify, and hold harmless CITY, its agents, officers and employees from any claim, action or proceeding against CITY, its agents, officers, or employees to attack, set aside, void, or annul the approval of this Agreement, or shall relinquish the right to the entitlement that is subject to attack. CITY shall promptly notify DEVELOPER of any such claim, action or proceeding, and CITY shall cooperate in the defense. If CITY fails to promptly notify DEVELOPER of any such claim, action or proceeding, or if CITY fails to cooperate in the defense, DEVELOPER shall not thereafter be responsible to defend, indemnify, or hold harmless CITY. CITY may in its discretion and at its own expense participate in the defense of any such claim, action or proceeding. 7.3 Reservation of Rights. With respect to Subsection 8.2, CITY reserves the right to either(1) approve the attorney(s) which DEVELOPER selects, hires or otherwise engages to defend CITY hereunder, which approval shall not be unreasonably withheld, or (2) conduct its own defense, provided, however, that DEVELOPER shall have no obligation to reimburse CITY for any such voluntary expenses incurred for such defense, including attorneys' fees. rS Development 4ereement -21- December 14.2010 TS Development Agreement 8. MORTGAGEE PROTECTION. The parties hereto agree that this Agreement shall not prevent or limit DEVELOPER, in any manner, at DEVELOPER's sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. CITY acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with DEVELOPER and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges: (a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law. (b) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to the CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by DEVELOPER in the performance of DEVELOPER's obligations under this Agreement. (c) If CITY timely receives a request from a mortgagee requesting a copy of any notice of default given to DEVELOPER under the terms of this Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to DEVELOPER. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. (d) Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of DEVELOPER's obligations or other affirmative covenants of DEVELOPER hereunder, or to guarantee such performance; provided, however, that to the extent that any covenant to be performed by DEVELOPER is a condition precedent to the performance of a covenant by CITY , the performance thereof shall continue to be a condition precedent to CITY's performance hereunder, and further provided that any sale, transfer or assignment by any Mortgagee in possession shall be subject to the provisions of Subsection 3.13 of this Agreement. rS Development Agreement -22- December 14,2010 TS Development Agreement 9. MISCELLANEOUS PROVISIONS. 9.1 Incorporation of Recitals. The Recitals of fact set forth preceding this Agreement are true and correct and are incorporated into this Agreement in their entirety by this reference. 9.2 Recordation of Agreement. This Agreement and any amendment or cancellation thereof shall be recorded with the San Bernardino County Recorder by the City Clerk within the period required by Section 65868.5 of the Government Code. 9.3 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. 9.4 Severability. If any term, provision, covenant or condition of this Agreement shall be determined by a final judicial determination to be invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement. Notwithstanding the foregoing, the provision of the public benefits set forth in Section 2 of this Agreement is an essential elements of this Agreement, and CITY would not have entered into this Agreement but for such provisions, and therefore in the event such provisions are conclusively determined to be invalid, void or unenforceable, this entire Agreement shall be null and void and of no force and effect whatsoever. 9.5 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof. 9.6 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 9.7 Singular and Plural. As used herein, the singular of any word includes the plural. 9.8 Joint and Several Obligations. If at any time during the term of this Agreement the Property is owned, in whole or in part, by more than one DEVELOPER, all obligations of such DEVELOPERS under this Agreement shall be joint and several, and the default of any such DEVELOPER shall be the default of all such DEVELOPERS. Notwithstanding the foregoing, no DEVELOPER of a single parcel which has been finally subdivided and sold to such DEVELOPER as a member of the general public or otherwise as TS Development Agreement -23- December 14.2010 TS Development Agreement an ultimate user shall have any obligation tinder this Agreement except as provided under Section 4 hereof. , 9.9 Time of Essence. Time is of the essence in the performance of.the provisions of this Agreement as to which time is an element. 9.10 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter. 9.11 No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 9.12 Force Maieure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the party's control, (including the party's employment force), government regulations, court actions (such as restraining orders or injunctions), or other causes beyond the party's control. If any such events shall occur, the term of this Agreement and the time for performance by either party of any of its obligations hereunder may be extended by the written agreement of the parties for the period of time that such events prevented such performance, provided that the term of this Agreement shall not be extended under any circumstances for more than five (5) years. 9.13 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby ofthe covenants to be performed hereunder by such benefited party. 9.14 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and, (c) is binding upon each party and each successor in interest during ownership of the Property or any portion thereof. 9.15 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. PS Development Agreement -4- December 14.2010 TS Development Agreement 9.16 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of San Bernardino, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 9.17 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership,joint venture or other association of any kind is formed by this Agreement. The only relationship between CITY and DEVELOPER is that of a government entity regulating the development of private property and the DEVELOPER of such property. 9.18 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute,with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. 9.19 Agent for Service of Process. In the event DEVELOPER is not a resident of the State of California or it is an association, partnership or joint venture without a member,partner or joint venturer resident of the State of California, or it is a foreign corporation, then in any such event, DEVELOPER shall file with the Community and Economic Development Director, upon its execution of this Agreement, a designation of a natural person residing in the State of California, giving his or her name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this Agreement, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon DEVELOPER. If for any reason service of such process upon such agent is not feasible, then in such event DEVELOPER may be personally served with such process out of this County and such service shall constitute valid service upon DEVELOPER. DEVELOPER is amenable to the process so served, submits to the jurisdiction of the Court so obtained and waives any and all objections and protests thereto. DEVELOPER for itself, assigns and successors hereby waives the provisions of the Hague Convention (Convention on the Service Abroad of Judicial and Extra Judicial Documents in Civil or Commercial Matters, 20 U.S.T. 361, T.I.A.S. No. 6638). 9.20 Authority to Execute. The person or persons executing this Agreement on behalf of DEVELOPER warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity TS Development Agreement -25- December 14.2010 and xvarrants and represents that he or she/they hasrhave the authority to bind DEVf:Lol1 R to the perionnance of its ohligations 1101-eunder. IN WITNESS WI IERLOi:, the parties hereto have executed this Development Ngrcement on the last day and year set forth below. DEVELOPER J, Dated: �/ � _ _ JACOBSEN FAMILY TRUST,a California Limited Liability Company r? , B f . as adobwd Dated: _ STATER BROS. MARKETS,a California Corporation By: its: CITY I� Dated: -- — -.— — CITY OF GRAND"TERRACE,a California :Municipal Corporation By: Maryetta Ferre, Mayor "t'CL'ST: By:_ C'iq Clerk - --- APPROVED AS TO LEGAL. I'OIZ%I- 7� TS Development Agreement Exhibit "A" Legal Description Page 1 APN 1167-231-03: THE WEST 120 FEET OF THE' EAST 360 FEET OF LOT 3, SECTION 5, TOWNSHIP 2 SOUTH, RANGE 4 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO MAP OF EAST RIVERSIDE LAND COMPANY, IN THE CITY OF GRAND TERRACE, COUNTY OF , SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6, PAGE 44 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THE NORTHERLY 17 FEET AS CONVEYED TO THE CITY OF GRAND TERRACE BY DEED RECORDED AUGUST 18, 1986 AS INSTRUMENT NO. 86-234863, O.R. APN 1167-231-08: THE WEST ONE ACRE OF THE EAST TWO ACRES OF LOT 4, IN SECTION 5, TOWNSHIP 2 SOUTH, RANGE 4 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO MAP OF EAST RIVERSIDE LAND COMPANY, IN THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6, PAGE 44 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM THE SOUTH 2O3.39 FEET, THE NORTH LINE OF THE SOUTH 203.39 FEET BEING DRAWN PARALLEL WITH THE SOUTH LINE OF SAID LOT. ALSO EXCEPT THE NORTHERLY 17 FEET AS CONVEYED TO THE CITY OF GRAND TERRACE BY DEED RECORDED AUGUST 29, 1986 AS INSTRUMENT NO. 86-249760, O.R. APN 1167-231-09: ALL THAT PORTION OF LOT 4, IN SECTION 5, TOWNSHIP 2 SOUTH, RANGE 4 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO MAP SHOWING LANDS OF EAST RIVERSIDE LAND COMPANY, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6, PAGE 44 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE SOUTH LINE OF BARTON ROAD (FORMERLY PALM AVENUE) WITH THE WEST LINE OF THE EAST 2 ACRES OF SAID LOT 4; THENCE SOUTH 193 FEET; THENCE WEST 127 FEET; THENCE NORTH 193 FEET TO THE SOUTH LINE OF BARTON ROAD; THENCE EAST 127 FEET TO THE POINT OF BEGINNING. TS Development Agreement -27- December Id,2010 ,3e "rS Development Agreement Exhibit "A" Legal Description Page 2 APN 1167-231-12: THAT PORTION OF LOT 4, ACCORDING TO MAP SHOWN LAND OF THE EAST RIVERSIDE LAND CO., IN THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6, PAGES 44 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. BEGINNING AT A POINT ON THE EAST LINE OF MICHIGAN STREET, 66 FEET WIDE AS SHOWN ON SAID MAP, 203.39 FEET NORTH OF THE SOUTH LINE OF SAID LOT; THENCE EAST PARALLEL WITH AND 203.39 FEET NORTH OF SAID LINE 432.27 FEET TO THE WEST LINE OF THAT CERTAIN PARCEL OF LAND CONVEYED TO JOHN M. BROWN, ET UX., BY DEED RECORDED JANUARY 1, 1945 IN BOOK 1791, PAGE 101, O.R. THENCE NORTH ALONG SAID WEST LINE 221 FEET, MORE OR LESS, TO A POINT 193 FEET SOUTH OF THE SOUTH LINE OF BARTON ROAD, 65 FEET WIDE; THENCE WEST PARALLEL WITH SAID SOUTH LINE, 127 FEET; THENCE NORTH 18 FEET TO A POINT, 175 FEET SOUTH OF THE SOUTH LINE OF SAID BARTON ROAD; THENCE WEST PARALLEL AND 175 FEET SOUTH OF SAID SOUTH LINE TO THE EAST LINE j OF SAID MICHIGAN AVENUE; THENCE SOUTH ALONG SAID EAST LINE TO THE POINT OF BEGINNING. APN 1167-231-13: THE SOUTH 2O3.39 FEET OF LOT 4, ACCORDING TO MAP SHOWING LANDS OF THE EAST RIVERSIDE LAND COMPANY, IN THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6 OF MAPS, PAGE 44, RECORDS OF SAID COUNTY, THE NORTH LINE OF WHICH IS DRAWN PARALLEL WITH THE SOUTH LINE OF SAID LOT. EXCEPT ANY PORTION LYING WITHIN ANY COUNTY ROADS. APN 1167-231-15: PARCEL 4 OF THAT CERTIFICATE OF COMPLIANCE WHICH RECORDED DECEMBER 14, 2006, AS INSTRUMENT NO. 2006-861592, O.R., IN THE CITY OF GRAND TERRACE. COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: TS Development Agreement -28- December 14.2010 -i n 'I'S Development Agreement Exhibit "A" Legal Description Page 3 BEING A PORTION OF LOT 3 AND OF LOT 4 , SECTION 5,TOWNSHIP 2 SOUTH, RANGE 4 WEST, S.B.M., ACCORDING TO MAP OF THE EAST RIVERSIDE LAND COMPANY, RECORDED IN BOOK 6, PAGE 44, OF MAPS, RECORDS OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID LOT 3; THENCE SOUTH 89025'30' WEST 360.00 FEET ALONG THE NORTH LINE OF SAID LOT TO THE NORTHERLY PROLONGATION OF THE EAST LINE OF THE LAND GRANTED TO DENNIS D. JACOBSEN FAMILY HOLDINGS II, LLC, BY DEED RECORDED JULY 5, 2006 AS INSTRUMENT NO. 2006-455383, OFFICIAL RECORDS OF SAID COUNTY; THENCE SOUTH 00029'04" EAST 17.00 FEET ALONG SAID PROLONGATION TO THE NORTHEAST CORNER OF SAID LAND; THENCE SOUTH 89°25'30" WEST 46.74 FEET ALONG THE NORTH LINE OF SAID LAND, BEING ALSO THE SOUTH LINE OF BARTON ROAD, HAVING A HALF WIDTH OF 50.00 FEET; THENCE SOUTH 00°05'14 EAST 114.18 FEET; THENCE NORTH 90°00'00" WEST 72.12 FEET AND THE TRUE POINT OF BEGINNING OF THE LAND DESCRIBED HEREIN; THENCE CONTINUING NORTH 90000'00" WEST 224.51 FEET; THENCE NORTH 00°05'14" EAST 111.21 FEET TO THE SOUTH LINE OF SAID BARTON ROAD, HAVING A HALF WIDTH OF 50.00 FEET; THENCE SOUTH 89025'30" WEST 36.42 FEET ALONG SAID SOUTH LINE TO THE WEST LINE OF THE LAND GRANTED TO SDG INVESTMENTS, LLC, BY DEED RECORDED NOV. 24, 2004 AS INSTRUMENT NO. 2004-0868658, OFFICIAL RECORDS OF SAID COUNTY; THENCE SOUTH 00' 26' 50"EAST 396.87 FEET ALONG SAID WEST LINE TO THE NORTH LINE OF THE SOUTH 2O3.39 FEET OF SAID LOT 4; THENCE NORTH 890 35' 21"EAST 97.42 FEET ALONG SAID NORTH LINE TO THE WEST LINE OF THE LAND GRANTED TO AFFILIATED JACOBSEN FAMILY HOLDINGS I1, LLC, BY DEED RECORDED OCTOBER 6, 2004 AS INSTRUMENT NO. 2004-0728921, RECORDS OF SAID COUNTY; THENCE SOUTH 00°26' 50" EAST 203.39 FEET ALONG SAID WEST LINE TO THE SOUTH LINE OF SAID LOT 3, BEING ALSO THE NORTHERLY RIGHT OF WAY LINE OF LA PAIX STREET, 15.00 FEET IN HALF WIDTH, AS SHOWN ON MAP BOOK 139, PAGES 47 AND 48 AND MAP BOOK 148, PAGES 81 AND 82, RECORDS OF SAID COUNTY; THENCE NORTH 890 35' 21" EAST 162.78 FEET ALONG SAID NORTHERLY RIGHT OF WAY TO THE SOUTH EAST CORNER OF SAID INSTRUMENT NO. 2004-0728917; THENCE NORTH 000 29' 04" WEST 487.56 FEET ALONG THE EAST LINE OF SAID LAND TO THE TRUE POINT OF BEGINNING. TS Development Agreement -29- December 14.2010 h ft TS Development Agreement Exhibit "A" Legal Description Page 4 APN 1167-231-21: PARCEL 4 OF THAT CERTIFICATE OF COMPLIANCE WHICH RECORDED DECEMBER 14, 2006, AS INSTRUMENT NO. 2006-861592, O.R., IN THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEING A PORTION OF LOT 3 AND OF LOT 4 , SECTION 5,TOWNSHIP 2 SOUTH, RANGE 4 WEST, S.B.M., ACCORDING TO MAP OF THE EAST RIVERSIDE LAND COMPANY, RECORDED IN BOOK 6, PAGE 44, OF MAPS, RECORDS OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID LOT 3; THENCE SOUTH 89025'30' WEST 360.00 FEET ALONG THE NORTH LINE OF SAID LOT TO THE NORTHERLY PROLONGATION OF THE EAST LINE OF THE LAND GRANTED TO DENNIS D. JACOBSEN FAMILY HOLDINGS II, LLC, BY DEED RECORDED JULY 5, 2006 AS INSTRUMENT NO. 2006-455383, OFFICIAL RECORDS OF SAID COUNTY; THENCE SOUTH 00029'04" EAST 17.00 FEET ALONG SAID PROLONGATION TO THE NORTHEAST CORNER OF SAID LAND; THENCE SOUTH 89°25'30" WEST 46.74 FEET ALONG THE NORTH LINE OF SAID LAND, BEING ALSO THE SOUTH LINE OF BARTON ROAD, HAVING A HALF WIDTH OF 50.00 FEET; THENCE SOUTH 00°05'14 EAST 114.18 FEET; THENCE NORTH 90000'00" WEST 72.12 FEET AND THE TRUE POINT OF BEGINNING OF THE LAND DESCRIBED HEREIN; THENCE CONTINUING NORTH 90000'00" WEST 224.51 FEET; THENCE NORTH 00005'14" EAST 111.21 FEET TO THE SOUTH LINE OF SAID BARTON ROAD, HAVING A HALF WIDTH OF 50.00 FEET; THENCE SOUTH 89025'30" WEST 36.42 FEET ALONG SAID SOUTH LINE TO THE WEST LINE OF THE LAND GRANTED TO SDG INVESTMENTS, LLC, BY DEED RECORDED NOV. 24, 2004 AS INSTRUMENT NO. 2004-0868658, OFFICIAL RECORDS OF SAID COUNTY; THENCE SOUTH 00° 26' 50"EAST 396.87 FEET ALONG SAID WEST LINE TO THE NORTH LINE OF THE SOUTH 2O3.39 FEET OF SAID LOT 4; THENCE NORTH 890 35' 21"EAST 97.42 FEET ALONG SAID NORTH LINE TO THE WEST LINE OF THE LAND GRANTED TO AFFILIATED JACOBSEN FAMILY HOLDINGS II, LLC, BY DEED RECORDED OCTOBER 6, 2004 AS INSTRUMENT NO. 2004-072892 1, RECORDS OF SAID COUNTY; THENCE SOUTH 00026' 50" EAST 203.39 FEET ALONG SAID WEST LINE TO THE SOUTH LINE OF SAID LOT 3, BEING ALSO THE NORTHERLY RIGHT OF WAY LINE OF LA PAIX STREET, 15.00 FEET IN HALF WIDTH, AS SHOWN ON MAP BOOK 139, PAGES 47 AND 48 AND MAP BOOK 148, PAGES 81 AND 82, RECORDS OF SAID COUNTY; THENCE NORTH 89' 35' 21" EAST 162.78 FEET ALONG SAID NORTHERLY RIGHT OF WAY TO THE SOUTH EAST CORNER OF SAID INSTRUMENT NO. 2004-0728917; THENCE NORTH 00' 29' 04" WEST 487.56 FEET ALONG THE EAST LINE OF SAID LAND TO THE TRUE POINT OF BEGINNING. TS Development Agreement ?O- December 14,1-010 n TS Development Agreement Exhibit "B" Property Subject to Development Agreement o 0 - } A II i D N 3 0 II .� DyWyW S d in � ro ,� v Z N w � fD ° v _ � m v w L1 m • w = 1167-231-09 I. .\ 3 = 1167-231-08 j1 I I fir 0 f w --1 v t...... ..A-.N.. s � � D 1167-231-15 - V • 1167-231-03 1 1167-231-02 NOT A PART 1167-231-01• NOT A PART Q .__- .N.O = , 1167-311-01 y NOT A PART 4 1167-311-02 NOT A PART 43 rz TS Development Agreement -31- December-14,2010 n'I ,rS Development Agreement Exhibit "C" Existing Development Approvals Approved by the Planning Commission pursuant to Site & Architectural Review: Grand Terrace Town Square Master Development Plan - SA 07-12 Master Sign Program No 09-01 Master Development Unit Phasing Plan—SA 07-12 Master Grading and Preliminary Grading Plans—SA 07-12 Sign Program for Development Unit 1 —SA 07-07 Grading and Landscaping Plan for Development Unit 1 —SA 07-07 Site Plan and Elevations for Site Plan for Development Unit 1 —SA 07-07 Approved by the City Council: Final Environmental Impact Report Grand Terrace Town Square Master Development Plan SA 07-12 Master Development Sign Program 09-01 Sign Program for Development Unit 1 Site and Architectural Review 07-07 �- Tentative Parcel Map No. 17787 (08-01) Approved by the Grand Terrace RDA: Development and Disposition Agreement dated February 15, 2005, and related amendments and Implementation Agreements. TS Development Agreement -32- December Id.3010 A? TS Development Agreement Exhibit "D" Existing Land Use Regulations Grand Terrace Municipal Code, in effect on the Effective Date of this Agreement Grand Terrace Zoning Map and Development Code Grand Terrace General Plan and Barton Road Specific Plan - TS Development Agreement -33- December 14,2010 n TS Development Agreement Exhibit "E-1" Development Impact Fees Storm Drainage Facilities $.353/sf of commercial space General Facilities $.208/sf of commercial space Public Use Facilities $0.000 (no fee for commercial uses) i Parkland/Open Space Acquisition $.051/sf Sewer Connection Fees $3000/connection+ $60 for every drainage fixture unit (DFU) in excess of 17 each Arterial Fees $9524.14 per 1,000 sf of gross leasable area Traffic Signal Fees $ 840.00 per 1,000 sf of gross leasable area The above-referenced Development Impact, Arterial and Traffic Signal Fees shall be reviewed by the City Council commencing in the sixth(61h) year following the Effective Date of this Agreement, and may be increased in the manner provided in Government Code Section 66000 et. seq. FS Dekelopment Agreement -34- December 14.2010 /1 C TS Development Agreement Exhibit "E-2" Credits DEVELOPER shall be entitled to credit against those Development Impact Fees required to be paid in Exhibit "E-1" as a consequence to the contribution made by preexisting development on the Property, or where it has been demonstrated that the Project will not require additional capacity or infrastructure, as indicated below: Storm Drainage Facilities 100% credit) General Facilities 100% credit2 Public Use Facilities $0.000 (no fee for commercial uses) Parkland/Open Space Acquisition 100% credit3 Sewer Connection Fees 100%credit The credits set forth above shall apply to DU 1, DU 2 and a portion of DU 4 of the Project, in accordance with Section 3.4. I Justification: Drainage is retained on site, and previous uses contributed their fair share to the existing system, which was overbuilt at the time of the RCS Study. Justification: Pre-existing,high density(mobilehome park, residential and commercial uses) contributed their fair share of general facilities; Project use is less intense then prior uses on Property. 3 Justification: Pre-existing, high density(mobilehome park, residential and commercial uses) contributed their fair share of parkland/open space; Project use is less intense than prior uses on Property. 4 The Project should be credited for capacity purchased in the system by previous residential and commercial uses on the Property, in accordance with Section 4.68.040 of the Municipal Code. The Project has been found to have excess reserved capacity in the City's current wastewater treatment facilities. TS Development Agreement -35- December 14,2010 Q6 TS Development Agreement Exhibit "F" Incentive Bonuses for Development Units 1 through 4 Page 1 The following methodology allocates Bonus Incentive Points to each element of the Project which either falls into a specific category established by the Barton Road Specific Plan for such allocation (e.g., lot consolidation, reciprocal access and reduced access points, integrated design and architecture), or as proposed by the Development where the Project exceed the Barton Road Specific Plan standards within a particular phase (e.g., enhanced landscaping, pedestrian amenities, enhanced design detail). Bonus Incentive Points for Master Development Plan(all phases) Points Allocation Proposed Recommended Consolidated lots into single master plan(Master Plan Area I of Planning Area I of the BRSP) in a single integrated 20 20 Plan Reciprocal Access and reduced access points 10 10 Reciprocal parking for access within phased development 10 10 Master design and integrated style 10 5 Master sign program/integrated style/consolidated face/reduced number 10 5 Total Bonus Points/All Phases 60 50 Bonus Incentives Points for Phase 1 (Development Units 1 &2 Points Allocation Provision of public or semi public pedestrian open space 5 5 Covered trellis with landscaping and pedestrian walkway 5 5 (enhanced focal point) Scored pattern/decorative sidewalks at store fronts 5 5 Enhanced landscaping in parking lot areas 5 5 Total Bonus Points/Phase 1 20 20 Total Bonus Points TSMDP + Phase 1 80 70 Based on the points allocation set forth above, the entire project is entitled to 70 Bonus Incentive Points, 50 of which attach to the Master Development Plan as a whole, and 20 of which are accrued within Phase 1. FS Development Agreement -36- December 14.2010 n-7 TS Development Agreement Exhibit "F" Incentive Bonuses for Development Units 1 through 4 Page 2 Project features which exceed City standards and for which Incentive Bonuses are requested in the form of reduced standards: Proposed Recommended Increased building (tower)height for Stater Bros. Market Off-setting consideration: Tower is not occupied space, and -3 -3 adds articulation of building surfaces, distinguishes anchor Stater Bros. and adjacent parking lot lighting height Off-setting consideration: Tenant height requirement, redesign to mitigate with City-standard lights along -5 -7 perimeter; design avoids "hot-spots" in parking fields and reduces number of lighting elements in parking fields Queuing at Driveway No. 1: Allow one vehicle (20 feet) queuing, add signage "No stopping or standing; direct to -3 -5 alternate access" Total Bonus Points Deducted -11 -15 Balance of Bonus Points Remaining 69 55 Future Phases: Under the Barton Road Specific Plan and this methodology, the Developer may seek, and receive additional Bonus Points in connection with development of future phases. The allocation and use of Bonus Points will be approved pursuant to Site and Architectural Review. TS Development Agreement -37- December 14.2010 n� i.4Ll'FORNIA AGENDA REPORT MEETING DATE: December 14, 2010 Council Item (X) CRA Item ( ) TITLE: City Council Vacancy PRESENTED BY: Betsy M. Adams, City Manager RECOMMENDATION: Consider alternatives available for filling the vacancy on the City Council; select a method for filling the vacancy from the alternatives provided; and direct staff to take the.steps necessary to implement the selected alternative to fill the vacancy. BACKGROUND: When Council Member Walt Stanckiewitz is sworn in as Mayor on December 14 a new vacancy is created on the City Council. Grand Terrace has had six prior City Council vacancies. The first five of these vacancies were filled by appointment and the sixth vacancy was filled by special election on November 2, 2010. A summary of the prior City Council vacancies is provided in Attachment A of this staff report. r DISCUSSION: As a general law city the options for filling a vacancy are governed by the California Government Code, specifically Section 36512(b), which provides the following: 36512.(b) If a vacancy occurs in an elective office provided for in this chapter, the council shall, within 30 days from the commencement of the vacancy, either fill the vacancy by appointment or call a special election to fill the vacancy. The special election shall be held on the next regularly established election date not less than 114 days from the call of the special election. A person appointed or elected to fill a vacancy holds office for the unexpired term of the former incumbent. In addition to the two options provided in the Government Code, the Elections Code allows an additional alternative. Sections 4000 and 4004 provide the'following: 4000. A local, special, or consolidated election may be conducted wholly by mail provided that all of the following conditions apply: (a) The governing body of the local agency authorizes the use of mailed ballots for the election. (b) The election is held on an established mailed ballot election date pursuant to Section 1500. (c) The election is one of the following: (1) An election in which no more than 1.000 registered voters are eligible to.participate. COUNCIL AGENDA ITEM NO.C_ 1 City Council Vacancy December 14,2010 Page Number 2 4004. (a) "Small city" means a city with a population of 100,000 or less, as determined by the annual city total population rankings by the Demographic Research Unit of the Department of Finance. (b) "Eligible entity" means a school district or a special district. (c) Notwithstanding Sections 1500 and 4000, an election in a small city or an eligible entity may be conducted wholly as an all-mail ballot election, subject to the following conditions: (1)The legislative body of the small city or the governing body of the eligible entity, by resolution, authorizes the use of mailed ballots for the election. (2) The election is a special election to fill a vacancy in the legislative, body or governing body. (3) The election is not held on the same date as a statewide primary or general election. (4) The election is not consolidated with any other election. (5) The return-of voted mail ballots is subject to Section 3017. Key information for each of these options is provided below. Fill City Council Vacancy by Appointment The first step in filling the vacancy on the City Could by appointment would be to establish the selection process. The City's past practice has been to accept applications from interested residents and then, during a Council meeting, conduct interviews and make the appointment. A copy of the application previously used is included as Attachment B: Staff has reviewed the application and recommends, if the Council decides to fill the vacancy by appointment, three changes: (1) add date and time the completed application needs to be submitted to the City Clerk; (2) add a question to confirm the applicant is a registered voter; and (3) add a signature line for applicant. If the City Council desires other changes to the application, they would need to be determined at the December 14 Council Meeting. Assuming the application is finalized by December 14, it would be made available at the City Clerk's Office and on the City's website on December 15. If the Council desires to conduct the interviews at the January 11 Council Meeting, versus scheduling a Special Meeting no later than January 13, staff recommends that applications be submitted to the City Clerk by 5:00 pm on January 4. This would allow the applications received to be included in the agenda packet for the January 11 Council Meeting. The agenda packet for this meeting would be available for the City Council in the late afternoon of January 5. Either before or at the January 11 Council Meeting, the Council would need to determine the order in which the applicants would be interviewed. The City's past practice has been for the Mayor to draw names to determine the order of the interviews. The applicants adjourned to the Library until each individual was asked to return to the Council Chamber for his or her interview. The questions asked by the City Council at the interviews would need to be determined. Staff recommends that the members of Council submit interview questions to the City Clerk by January 6 to be developed into a list of possible interview questions. Staff may also suggest interview questions depending on how many are received from the Council. At the January 11 Council Meeting, after the applicants have adjourned to the Library, the Council would review the list of possible interview questions to decide which questions will be asked and to determine City Council Vacancy December 14, 2010 Page Number 3 which member of Council will ask which question. After the interview questions have been determined the interviews would begin. At the conclusion of the interviews, City Council discussion on the appointment would begin. The City's past practice has been for the Council to vote on the appointment with the ballots kept on file in the City Clerk's Office. Depending on the number of applicants, it may take more than one round of ballots for a majority of the Council to reach consensus on which applicant will fill the vacancy. When a decision is reached through this process the City Clerk advises the Council and a motion is made to appoint the successful applicant to fill the vacancy. The new member of the City Council would be sworn in at the January I I-Council Meeting. Fill City Council Vacancy by Special Election The San Bernardino County Registrar of Voters has conducted the City's general municipal elections since incorporation. If the Council decides to fill the vacancy by a special election, the Council would need to adopt resolutions calling and giving notice for the election, requesting the Registrar of Voters' services, and setting regulations for the candidate' statements. The special municipal election for a Council Member to fill a vacancy would be held on Tuesday, June 7, 2011. The Council would need to adopt the resolutions required by the Registrar of Voters at the January 11 Council Meeting. Fill City Council Vacancy by pecial Election Using Mailed Ballots The San Bernardino County Registrar of Voters would conduct the special election by mailed ballot if the Council decides to fill the vacancy in this manner. Section 1500 of the Elections Code specifies when mailed ballot elections can be held: 1500. The established mailed ballot election dates are as follows: (a)The first Tuesday after the first Monday in May of each year. (b)The first Tuesday after the first Monday in March of each even-numbered year. (c) The last Tuesday in August of each year. In 2011, the established mailed ballot election dates are May 9 and August 30. For a mailed ballot election on May 9, a resolution authorizing the election to be conducted wholly by mail method along with resolutions calling and giving notice for the election, requesting the Registrar of Voters' services, and setting regulations for the candidate statements would need to be adopted no later than Sunday, January 9, 2011. ' A special meeting for the City Council would be needed to meet this deadline. If the Council fails to fill the vacancy by either appointment or special election, the Government Code provides that the vacancy will be filled at the next November regular election which for Grand Terrace will be in 2012. Additional Information While preparing this agenda item for Council consider, members of the City Council asked staff to research two additional questions which are summarized below. Is there an orclinance in place requiring a special election to.fill the City Council vacancy'? Section 365 12(c) of the Government Code provides for the following: City Council Vacancy December 14, 2010 Page Number 4 36512. (c) Notwithstanding subdivision (b) and Section 34902, a city may enact an ordinance which: (1) Requires that a special election be called immediately to fill every city council vacancy and the office of mayor designated pursuant to Section 34902. The ordinance shall provide that the special election, shall be -held on the next regularly established election date not less than 114 days from the.call of the special election. Grand Terrace has not adopted an ordinance requiring a special election to fill every City Council vacancy, as allowed by the Government Code, thus the Council has the option to , consider filling the current vacancy by either appointment or special election. Is there an option whereby the Governor would be able to fill the City Council vacancy by appointment? Section 1772 of the Government Code, based on California Constitution Article 5, Section5, provides for the following: 1772. When any office becomes vacant and no mode is provided by law for filling the vacancy, the Governor shall fill the vacancy by granting a commission, to expire at the end of the next session of the Legislature or at the next election by the people. Since Section 36512 of the Government Code provides a specific process for cities to fill a vacancy, Section 1772 would not apply to Grand Terrace"s City Council vacancy. 1 FISCAL IMPACT: There is no significant fiscal impact to filling the vacancy on the City Council by appointment. The fiscal impact to filling the vacancy by special election is estimated by the San Bernardino County Registrar of Voters to be $45,000 to $50,000. The Registrar of Voters estimates the cost for the special election by mailed ballot to be $31,000. The reason the cost estimates for the special election and mail ballot election are significantly higher than the Registrar's estimated $2,000 to fill a City Council vacancy at the November 2, 2010 election is because many items were on that ballot (the more items on a ballot the lower the cost for each item on the ballot). The Council would need to make an appropriation from the undesignated General Fund reserve (projected to be $1,588,376 for Fiscal Year 2010/2011 in the adopted budget) to pay for the cost of either a special election or a special election by mail,ballot to fill the City Council vacancy. Respectfully submitted, Betsy . Adams City Manager Concurred by Concurred by Brenda Mesa, City Clerk John Harper, City Attorney City Council Vacancy December 14, 2010 Page Number 5 ATTACHMENTS: Attachment A: Summary of City Council Vacancies Attachment B: Application to Serve on the City Council f � r City Council Vacancy December 14, 2010 Page Number 6 Attachment A City Council Vacancy December 14, 2010 Page Number 7 Summary of City Council Vacancies # Date Method of Filling Vacancy Vacated/Filled 1 September 19, 1988 Council Member Susan Shirley resigned October 10, 1988 Jim Singley appointed(term expired 11/1990) 2 March 9, 1994 Council Member Ron Christianson resigned March 18, 1994 Dan Buchanan appointed(term expired 11/1994) 3 June 10, 1996 Council Member Gene Carlstrom resigned June 11, 1996 Lee Ann Garcia appointed'(term expired 11/1996) 4 August 26, 1999 Council Member Jim Singley resigned September 14, 1999 Don Larkin appointed (term expired 11/2000) 5 December 14, 2006 Council Member Maryetta Ferre elected Mayor January 9, 2007 Dan Buchanan appointed(term expired 11/2008) 6 March 10, 2010 Council Member Jim Miller resigned December 14, 2010 Darcy McNaboe elected 11/2/10 (term expires 11/2012) I City Council Vacancy December 14, 2010 Page Number 8 Attachment B City Council Vacancy December 14, 2010 Page Number 9 c1Tr CITY OF GRAND TERRACE RMNHb ERR c APPLICATION TO SERVE ON THE CITY COUNCIL Please complete and submit to the City Clerk's Department Name No. of years lived in Grand Terrace Address Home Phone Business Phone Please list work experience for the past ten years Name and location of High School College/University and degree(s) Please state,your reasons you want to be a Council Member 0 City Council Vacancy December 14,2010 Page Number 10 Have you served or volunteered for other community service? References ti 1. 2. 3. 1I CILIIFORNIA AGENDA REPORT MEETING DATE: December 14, 2010 Council Item (X) CRA Item ( ) r TITLE: Appointments to Regional Government Organizations PRESENTED BY: Brenda Mesa, City Clerk RECOMMENDATION: Review and Assign Representatives BACKGROUND: The City of Grand Terrace has the opportunity to participate on various regional government organizations. 'The last review of the assignments was on May 25, 2010. Historically the assignments are reviewed every two years following the regular municipal election date. DISCUSSION: A copy of the current approved list of representatives and alternates is attached for your review. With the retirement of Mayor Ferre and Council Member Cortes, the City will not be represented on boards to which they were assigned until action is taken by the Council. It is important to note that San Bernardino Associated Governments (SANBAG) has advised that the next SANBAG Board meeting will be ,on January 5, 2011. At that meeting the City representatives will be caucusing to select members for the Administrative Committee and Plans and Programs Committee. FISCAL IMPACT: None Respectfully submitted: Brenda Mesa, City Clerk Manager Approval: g Pp Betsy . Adams, City Manager ATTACHMENTS: List of the current assignments approved by Council on May 25, 2010 COUNCIL AGENDA ITEM NO. �� CITY OF GRAND TERRACE =. APPOINTMENTS TO REGIONAL GOVERNMENT ORGANIZATIONS Organization Representative Alternate Scheduled Meetings Stipend Omnitrans(Board of Directors) Lee Ann Garcia Maryetta Ferrd I"Wednesday of each month at 8:00 Yes it a.m. �puthern California Association of Governments General Lee Ann Garcia Bea Cortes May of each year No 'ssembly(SCAG) San Bernardino Valley Water District Advisory Don Hough,Riverside Typically 3`d of 40'Thursday at 7:00 No Commission on Water Highland Water p.m. Company League of California Cities Inland Empire Division Walt Stanckiewitz Maryetta Ferrd I"Thursday of every other month No 6:30 p.m. San Bernardino Associated Governments Board of Bea Cortes Maryetta Ferrd I"Wednesday of each month at 9:00 Yes Directors(SANBAG) a.m.and 2"d Thursday of every month at 9:00 a.m.for Major Projects Committee San Bernardino County Solid Waste Task Force Maryetta Ferrd Betsy M.Adams Semi-annual(April/October) No Wednesday or Thursday 1:30 p.m. California Joint Powers Insurance Authority(Board of Maryetta Ferr6 Betsy M.Adams July of each year No Directors) San Bernardino County Gang&Drug Task Force Maryetta Ferr6 None . Wednesday of each month 7:30 No a.m. Effective May 25, 2010 Y`