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11/18/2008 l.E COPT O �tteno TEttTCE - 22795 November 18,2608' Barton Road' ,Grand Terrace California 92313-5295 _ Civic Center (909)-824-6621 Tax.(909)783-7629 Fax(909)783-2600 CTY OF GRAND' TERRA_ CE I Maryetta Ferr6, Mayor _ -C", CITY COUNCIL ' 'Lee Ann Garcia ' Mayor•ProTem - REGULAR MEETINGS - Bea Cortes - Jim Miler 2ND AND 4TH- Tuesday - 6:00-.,,p.m. Dan Buchanan Council Members - - - Thomas J.Schwab . 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 November 18,2008 GRAND TERRACE CIVIC CENTER 6:00 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 HALL LOCATED 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 COMMUNITY REDEVELOPMENT AGENCY 1. Approval of 10-28-2008 Minutes Approve 2. Closed Session - Conference with Real Property Negotiators (Government Code Section 54956.8) Property-22747 Barton Road,APN:0276-202-54 Agency Negotiator-Steve Bent' Negotiating Parties-Les J.Copelin, Lee and Associates Under Negotiation-Price and Terms of Payment 3. Closed Session-Conference with Real Property Negotiators (Government Code Section 54956.8) Property-Unimproved parcel on Barton Road,APN:0275-242-11 Agency Negotiator-Steve Berry Negotiating Parties-Diana Hsueh Under Negotiation-Price and Terms of Payment ADJOURN COMMUNITY REDEVELOPMENT AGENCY CONVENE CITY COUNCIL MEETING 1. Items to Delete 2. SPECIAL PRESENTATIONS A. 30`h Anniversary Presentation-City Staff B. Swearing in New Community Emergency Response Team (C.E.R.T.)Members COUNCIL AGENDA l 1-18-2008 PAGE 2 OF 3 AGENDA ITEMS STAFF COUNCIL RECOMMENDATIONS ACTION 3. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and I i noncontroversial. They will be acted upon by the Council at one time without discussion. Any Council Member,Stag'Member,or Citizen may request removal of an item from the Consent Calendar for discussion. ' I A. Approve Check Register Dated November 18,2008 Approve B. Waive Full Reading of Ordinances on Agenda C. Approval of 10-28-2008 Minutes Approve D. Approve Amended Cooperative Agreement Between Colton Approve and Grand Terrace for the Barton Road Bridge Replacement Project 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 i made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public I comment or may request a matter be agendized for a future meeting. 5. REPORTS A. Committee Reports 1. Emergency Operations Committee a. Minutes of October 7,2008 Accept 2. Historical&Cultural Activities Committee a. Minutes of October 6,2008 Accept B. Council Reports 6. PUBLIC HEARINGS-None 7. UNFINISHED BUSINESS-None 8. NEW BUSINESS A. Participation in We-Tip Member City Program Approve B. Resolution Electing to Be Subject to Public Employees' Approve Medical and Hospital Care Act Only with Respect to Members of a Specific Employee Organization and Fixing the Employer's Contribution for Employees and the Employer's Contribution for Annuitants at Different Amounts COUNCIL AGENDA 11-18-2008 PAGE 3 OF 3 AGENDA ITEMS STAFF COUNCIL RECOMMENDATIONS ACTION C. Actuarial Valuation Report of the City's Proposed Retiree Health Program 9. CLOSED SESSION A. Performance Evaluation of City Manager Tom Schwab B. Personnel Negotiations(GC54957.6)Conference with 1 Labor Negotiator-Steve Berry Representing Unrepresented _= Employees C. Conference with Real Property Negotiators(GC 54956.8) (Barton Road Bridge Overhead Project) Property-APN: 1167-121-03 & 1167-I21-04 Agency Negotiator-Steve Berry Under Negotiation-Price and Terms of Payment ADJOURN i THE NEXT CRA/CITY COUNCIL MEETING WILL BE HELD ON TUESDAY, DECEMBER 9,2008 AT 7:30 P.M FOLLOWING THE CITY BIRTHDAY CELEBRATION. ... .... ....................... .... ......... AGENDA ITME REQUESTS MUST..BE. ..SUBMITTED. ..IN..... WRITING TO THE CITY CLERK'S OFFICE NO LATER THAN 14 CALENDAR DAYS PRECEDING THE MEETING PENDING CRA APPROVAL CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY MINUTES REGULAR MEETING - OCTOBER 28,2008 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 October 28, 2008 at 6:00 p.m. PRESENT: Maryetta Ferre, Chairman Lee Ann Garcia, Vice-Chairman Jim Miller, Agency Member Dan Buchanan, Agency Member Brenda Mesa, City Clerk Steve Berry, Acting City Manager Bernie Simon, Finance Director Joyce Powers, Community &Economic Development Director Richard Shields, Building & Safety Director. John Harper, City Attorney Lt. Mike Newcombe, Sheriff's Department John Salvate, San Bernardino County Fire Department ABSENT: Bea Cortes, Agency Member Tom Schwab, City Manager CONVENE COMMUNITY REDEVELOPMENT AGENCY AT 6:00 P.M. APPROVAL OF 10-14-2008 MINUTES CRA-2008-25 MOTION BY VICE-CHAIRMAN GARCIA, SECOND BY AGENCY MEMBER BUCHANAN,- CARRIED 4-0-1-0 (AGENCY MEMBER CORTES WAS ABSENT), to approve the October 14, 2008 Community Redevelopment Agency Minutes. Chairman Ferre adjourned the Community Redevelopment Agency Meeting at 6:10 p.m.,until the next CRA/City Council Meeting that is scheduled to be held on Tuesday,November 18,2008 at 6:00 p.m. SECRETARY of the Community Redevelopment Agency of the City of Grand Terrace CHAIRMAN of the Community Redevelopment Agency of the City of Grand Terrace CRA AGENDA ITEM NO. , vchlist Voucher List Page: 1 11/04/2008 3:34:38PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 62498 10/23/2008 006505 S.B COUNTY FIRE DEPT 102508 Paint-Graffitti Clean-up Event 10-450-246-000-000 100.00 Total : 100.00 62499 10/23/2008 010819 ZUNIGA, ANNA 3RD QTR 2008 3rd Qtr 08 Medical Reimbursement 10-440-139-000-000 488.00 Total : 488.00 62500 10/27/2008 010964 S B COUNTY SHERIFF'S DEPT 02542 Caterinq-30th Anniversary Gala 23-200-50-00 2,175.00 Total : 2,175.00 62501 10/29/2008 010965 PETTY CASH 10292008 Reimburse Petty Cash 10-010-01-00 550.00 Total : 550.00 62502 10/30/2008 010885 BROESKE ARCHITECTS &ASSOC 08-240 G T. FIRE STATION RENOVATION 10-190-723-000-000 7,005.06 08-251 G.T. FIRE STATION RENOVATION 10-190-723-000-000 7,057.22 08-267 G T. FIRE STATION RENOVATION 10-190-723-000-000 3,798.12 Total : 17,860.40 62503 10/30/2008 010626 MONTES, MARIA 11012008 Cash Box for Country Fair Event - 23-200-50-00 15000 Total : 150.00 62504 10/30/2008 010911 L & N RENTALS 10312008 Game Booth Rentals 23-200-64-00 1,373.81 Total : 1,373.81 62505 10/80/2008 010447 STUDIO 33 PRODUCTIONS 08-422 Stage/Media Setup 23-200-64-00 0.00 08-422A Stage/Media Setup 23-200-50-00 9,152.30 COUNCIL AGENDA ITEM N®.J? 9 Page 1 vchlist Voucher List Page: 2 11/04/2008 3:34:38PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 62505 10/30/2008 010447 STUDIO 33 PRODUCTIONS (Continued) 5456 Multimedia Svcs-Gala Event 23-200-50-00 4,487.92 Total : 13,640.22 62506 11/11/2008 010678 ARCHIVE MANAGEMENT SERVICE 0074909 FY 08/09 BACKUP TAPE STORAGE 10-180-250-000-000 55.25 10-140-250-000-000 55.25 Total : 110.50 62507 11/11/2008 001213 AT&T 9098247013793 October Child Care dsl service 10-440-245-000-,000 74.46 Total : 74.46 62508 11/11/2008 010063 BALLOON TEAM PROMOTIONS 101708 30th Anniversary Events Decor 23-200-50-00 2,299.11 Total : 2,299.11 62509 11/11/2008 010070 BEARDSLEY, KEVIN 11042008 COUNCIL MTG VIDEO SERVICES 10-125-250-000-000 400.00 Total : 400.00 62510 11/11/2008 010967 BOYS SCOUT TROOP 40 101708 Gala-Event Services 23-200-50-00 25000 Total : 250.00 62511 11/11/2008 010968 BUCK CONSULTANTS LLC 2007813 September GASB45 Datawork 10-140-250-000-000 1,026.48 Total : 1,026.48 62512 11/11/2008 001498 CALBO 6824 OCT. 27, 2008 EDUCATION WEEK TRAINING 10-172-270-000-.000 675.00 Total : 675.00 62513 11/11/2008 010218 CHEVRON &TEXACO CARD SERVICES 14947691 Maintenance Veh. Fuel 10-180-272-000-000 75649 Total : 756.49 Page. 2 � J vchlist C4uucher List j Page: 3 11/04/2008 3:34:38PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 62514 11/11/2008 001840 CITY OF COLTON 000863 ANIMAL CONTROL CODE ENF SRVS 10-190-256-000-000 3,629.00 Total : 3,629.00 62515 11/11/2008 010866 CIVIC PLUS 61313 'WEBSITE MAINT FEE 10-125-250-000-000 615.00 Total : 615.00 62516 11/11/2008 010299 CONSOLIDATED PLASTICS COMPANY 6967997 City Hall Entryway Mats 10-180-245-000-000 349.53 Total : 349.53 62517 11/11/2008 001907 COSTCO#478 2190 C CARE SUPPLIES 10-440-228-000-000 149.79 10-440-220-000-000 49.93 Total : 199.72 62518 11/11/2008 001930 DAILY JOURNAL CORPORATION B1436681 FY 2008/09 LEGAL ADVERTISING 10-125-230-000-000 37.62 Total : 37.62 62519 11/11/2008 003210 DEPT 32-2500233683 020444/713209E CERT Emergency Equip/Supplies 10-808-221-000-000 321.46 021800/608001,e MAINT SUPPLIES 10-450-246-000-000 220.07 023813/403072,' MAINT SUPPLIES 10-180-245-000-000 178.18 027108/057526E MAINT SUPPLIES 10-180-245-000-000 1530 029213/802018z Halloween Haunt Supplies 23-200-64-00 10.89 029330/8221021 Hallween Haunt Supplies 23-200-64-00 1616 029658/822102r, Halloween Haunt Supplies 23-200-64-00 193.63 030439/703135,' Halloween Haunt Supplies 23-200-64-00 70.51. Page: 3 vchlist Voucher List Page: 4 11/04/2008 3:34:38PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 62519 11/11/2008 003210 DEPT 32-2500233683 (Continued) 1029-302008 Halloween Haunt Event Supplies 23-200-50-00 291.19 10312008 Halloween Haunt Event Supplies 23-200-64-00 -291 19 Total : 1,026.20 62520 11/11/2008 002165 DRUG ALTERNATIVE PROGRAM 7392 WEED CONTROL AT PARKS 10-450-245-000-000 1,00000 Total : 1,000.00 62521 11/11/2008 002280 EVER READY EMBROIDERY 1796A EMBROIDERY-SHIRTS 10-180-218-000-000 90.46 1899 Embroidered Blankets/Bags 10-190-220-000-000 796.19 Total : 886.65 62522 11/11/2008 010537 EXECUTIVE SERVICES 3029 BUILDING CLEANING SERVICES 10-180-255-000-000 1,125.00 10-172-246-000-000 17500 Total : 1,300.00 62523 11/11/2008 002740 FRUIT GROWERS SUPPLY 90187763 MAINT SUPPLIES & REPAIRS 10-450-246-000-000 21 54 90187922 MAINT SUPPLIES & REPAIRS 10-450-246-000-000 396 90188465 MAINT SUPPLIES & REPAIRS 10-450-245-000-000 1540 Total : 40.90 62524 11/11/2008 002835 GIBSON DISCOUNT 106101 C. CARE CLEANING SUPPLIES 10-440-228-000-000 21.59 Total : 21.59 62525 11/11/2008 010258 GMAC PAYMENT PROCESSING CENTER 024910315936-1 '07 TAHOE LEASE 10-120-273-000-000 55407 Page. 4 vchlist Voucher List Page: 5 11/04/2008 3:34:38PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 62525 11/11/2008 010258 GMAC PAYMENT PROCESSING CENTER(Continued) Total : 554.07 62526 11/11/2008 010425 GOLDEN TIGER MARTIAL ARTS 100108 October Martial Arts Fees 10-430-27 20650 Total : 206.50 62527 11/11/2008 010422 HANNA, TERRI 3RD QTR 2008 3rd Qtr 2008 Medical Reimbursement 10-440-139-000-000 360.00 Total : 360.00 62528 11/11/2008 003224 HYDRO-SCAPE PRODUCTS INC. 05702840-00 Park Landscape/Sprinkler Supplies 10-450-245-000-000 26038 05707344-00 LANDSCAPE/MAINT SUPPLIES 10-450-245-000-000 221.51 05711720-00 LANDSCAPE/MAINT SUPPLIES 10-180-245-000-000 169.59 Total : 651.48 62529 11/11/2008 006880 IBT 360910764 -Fingerprint Fees-C. Moreno 10-440-228-000-000 92.00 Total : 92.00 62530 11/11/2008 003858 J.Z.'S PARTY CHARM SB2537 Gala Event Rentals 23-200-50-00 2,785.21 Total : 2,785.21 62531 11/11/2008 003850 JANWING LAX10081529 C. CARE DAILY CLEANING & CARPET CLEANING 10.-440-244-000-000 50.00 LAX11080042 C. CARE DAILY CLEANING & CARPET CLEANING 10-440-244-000-000 97500 Total : 1,025.00 62532 11/11/2008 010966 JUNIPERO SERRA, HOUSE OF FORMATI 101708 Gala Event Services 23-200=50-00 25000 Total : 250.00 62533 11/11/2008 004320 LAWNMOWER CENTER 11350 EQUIPMENT REPAIR 10-450-246-000-000 32.33 Page: 5 vchlist Voucher List Page: 6 11/04/2008 3:34:38PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 62533 11/11/2008 004320 LAWNMOWER CENTER (Continued) Total : 32.33 62534 11/11/2008 010690 LSA ASSOCIATES INC. 89087F TOWN SQUARE EIR 32-600-212-000-000 1,381.25 89373 Svcs-Ritz Tract: 9/1-9/30/08 23-302-45-00 3,777.50 Total : 5,158.75 62535 11/11/2008 010546 MPOWER COMMUNICATIONS 387767-Novemt November Phone Line Fees 10-440-235-000-000 243.62 10-805-235-000-000 2811 10-450-235-000-000 51.62 Total : 323.36 62536 11/11/2008 005024 NEOPOST INC. 12687511 Postage mach Ink/Supplies 10-190-246-000-000 248.36 Total : 248.36 62537 11/11/2008 010097 NEXTEL COMMUNICATIONS 410575025-073 Aug-Sept Nextel Charges 10-440-235-000-000 49.89 10-180-240-000-000 55917 Total : 609.06 62538 11/11/2008 005417 OFFICE MAX 036938 Misc. Office Supplies 10-440-210-000-000 32.20 Total : 32.20 62539 11/11/2008 010851 PARADIGM PRESSURE WASHING 09302008 FY 08/09 GRAFFITI,CLEAN UP 10-180-255-000-000 50000 Total : 500.00 62540 11/11/2008 005586 PETTY CASH 11032008 Child Care Petty Cash Replenishment 10-440-220-000-000 1345 10-440-221-000-000 18.43 10-440-228-000-000 38 95 10-440-223-000-000 21.63 Total : 92.46 } Page: 6 i vchlist ;;teacher List Page: 7 11/04/2008 3:34:38PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 62541 11/11/2008 005663 PRECIE, DENNICE 3RD QTR 2008 3rd Qtr 2008 Medical Reimbursement 10-440-139-000-000 451.75 Total : 451.75 62542 11/11/2008 010657 PROGRESSIVE SOLUTIONS 11132008 Conference Registration: 11/13-11/14 10-180-270-000-000 34500 Total : 345.00 62543 11/11/2008 010171 REPUBLIC ELECTRIC 8942 Furnish/Deliver 3 Emitters to Fire Dept 10-410-701-000-000 3,925.51 Total : 3,925.51 62544 11/11/2008 006557 S B. COUNTY DEPT. PUBLIC WORKS FC074/09 ANNUAL FLOOD AGREEMENT 12-903-701-000-000 2,991.00 Total : 2,991.00 62545 11/11/2008 006510 S B. COUNTY INFORMATION OCU0809M On-Call pager access 10-180-240-000-000 108.00 Total : 108.00 62546 11/11/2008 006681 SMART& FINAL 238 SUPPLIES 10-804-220-000-000 100.00 Total : 100.00 62547 11/11/2008 007005 SO CAL LOCKSMITH 6350 Latch for Child Care Door 10-440-245-000-000 19.37 6449 Master key•for Park Gates 10-450-245-000-000 167.83 Total : 187.20 62548 11/11%2008 006720 SO.CA.EDISON COMPANY 11112008 October Utility Charges Page. 7 vchlist Voucher List Page: 8 11/04/2008 3:34:38PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 62548 11/11/2008 006720 SO.CA.EDISON COMPANY (Continued) 10-175-238-000-000 3994 10-172-238-000-000 4993 34-400-238-000-000 10983 10-190-238-000-000 3,312.68 10-450-238-000-000 1,54377 15-500-601-000-000 29.10 10-440-238-000-000 1,045.57 16-510-238-000-000 473.91 Total : 6,604.73 62549 11/11/2008 010613 SUN BADGE COMPANY 299954 NPDES Inspector Badge 10-180-210-000-000 8739 Total : 87.39 62550 11/11/2008 006898 SYSCO FOOD SERVICES OF L.A. 810220395 C. CARE FOOD & SUPPLIES 10-440-220-000-000 63669 810290603 C. CARE FOOD & SUPPLIES 10-440-220-000-000 55394 Total : 1,190.63 62551 11/11/2008 007102 T Y.LIN INTERNATIONAL 0810336 CHG ORD#4 BARTON BRIDGE 47-100-250-001-000 1,01335 Total : 1,013.35 62552 11/11/2008 010586 THE JAMIESON GROUP 2008.140 Econ Dev Consulting Svcs- 9/25-10-17 32-370-255-000-000 1,187.50 Total : 1,187.50 62553 11/11/2008 010934 THE SATELLITE WORKS INC 3008190020 FY 08/09 MONTHLY ACCESS FEE 10-808-235-000-000 74 59 Total : 74.59 62554 11/11/2008 010775 TROPHY HOUSE 5268 Sports Leagues 30th Ann. Event 23-200-50-00 12990 Total : 129.90 62555 11/11/2008 007400 U. S. BANK TRUST N.A. 2234344 '93 CRA TAB A/B Admin Fees 11 Page: 8 vchlist v vucher List Page: 9 11/04/2008 3:34:38PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 62555 11/11/2008 007400 U. S. BANK TRUST N.A. (Continued) 33-300-210-000-000 55000 2234376 '97 COP PFA Admin Fees 33-300-210-000-000 3,85000 2234654 GT Custody Acct Admin Fees 33-300-210-000-000 1,000.00 Total : 5,400.00 62556 11/11/2008 010750 URBAN CROSSROADS INC. 19890 Consulting Svcs. 8/1-8/31/08 10-370-255-000-000 784.27 Total : 784.27 62557 11/11/2008 007539 VALLEY TIRE COMPANY 87506 VEHICLE MAINT 10-180-272-000-000 67.82 87506A Maintenance Vehicle Repair 10-180-272-000-000 511 37 Total : 579.19 62558 11/11/2008 001038 VERIZON WIRELESS-LA 0702736476 Wireless svcs-09/23-10/22 34-400-235-000-000 14769 Total : 147.69 62559 11/11/2008 010421 VILLAGE ENTERPRISES, DARCY MCNAB08-58 CONSULTING 10-180-255-000-000 37.50 Total : 37.50 62560 11/11/2008 007843 WEST COAST ARBORISTS INC 55508 TREE SERVICES 16-900-260-000-000 1,962.00 Total : 1,962.00 62561 11/11/2008 007880 WEST GROUP 816987762 CA CODE UPDATES FY 08109 10-125-250-000-000 305.74 Total : 305.74 62562 11/11/2008 007938 WIRZ& COMPANY 55096 Halloween Haunt Brochure Mailers 23-200-64-00 000 Page: 9 vchlist Voucher List Page: 10 11/04/2008 3:34:38PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 62562 11/11/2008 007938 WIRZ&COMPANY (Continued) 55096A Halloween Haunt Brochure Mailers 23-200-50-00 1,44987 55168 Business Cards-J Powers 10-370-220-000-000 42.02 Total : 1,491.89 62563 11/11/2008 007987 XEROX CORPORATION 036524474 CC 55 COPIER LEASE- 10-190-700-000-000 334:49 10-190-700-000-000 25.92 036524475 CC265 COPIER LEASE 10-190-700-000-000 27066 10-190-700-000-000 20_97 Total : 652.04 66 Vouchers for bank code: bofa Bank total : 93,713.32 66 Vouchers in this report Total vouchers : 93,713.32 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. 1� Bernie Simon, Finance Director 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 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 TRAVEL/CONFERENCES/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 PENDING am COUNCIL APPROVAL CITY OF GRAND TERRACE CITY COUNCIL MINUTES REGULAR MEETING - OCTOBER 28,2008 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 October 28, 2008, at 6:00 p.m. PRESENT: Maryetta Ferre, Mayor Lee Ann Garcia, Mayor Pro Tem Jim Miller, Councilmember Dan Buchanan, Councilmember Brenda Mesa, City Clerk Steve Berry, Acting City Manager Bernard Simon, Finance Director Joyce Powers, Community&Economic Development Director Richard Shields, Building& Safety Director John Harper, City Attorney Lt. Mike Newcombe, San Bernardino County Sheriff's Department John Salvate, San Bernardino County Fire Department (`f� ABSENT: Bea Cortes, Councilmember Tom Schwab, City Manager The City Council meeting was opened with Invocation by Mayor Pro Tem Lee Ann Garcia,followed by the Pledge of Allegiance led by Councilman Jim Miller. Acting City Manager Steve Berry introduced the new Community and Economic Development Director, Joyce Powers. Joyce Powers,Community and Economic Development is pleased to be in the City of Grand Terrace. ITEMS TO DELETE -None SPECIAL PRESENTATIONS 2A. 30`h Anniversary Presentation- Grand Terrace Branch Library Mayor Ferre stated that as we know the City has been celebrating;3 0 years all year and each month the Council has recognized those people that have gone above and beyond the job to help make our City a '`Grand" Grand Terrace. She reported that this evening the City is honoring the Grand Terrace Branch Library, the volunteers and all those who work in the library. She presented Erin Christmas, Librarian, with a 30`h Anniversary Plaque. COUNCILAGENDA ITEM NO Council Minutes 10/28/2008 Page 2 Erin Christmas, thanked the Mayor and Council for this wonderful honor. She introduced all those that were in the audience that are affiliated with the Grand Terrace Branch Library. Ed Kieczykowski, San Bernardino County Librarian, stated that it is a great pleasure to be at the meeting. He thanked the Council for honoring the Library. He indicated that he has been here for 15 years and the City of Grand Terrace has been one of the best partners to �I work with and very supportive of their needs. CONSENT CALENDAR CC-2008-95 MOTION BY COUNCILMEMBER BUCHANAN, SECOND BY MAYOR PRO TEM GARCIA, CARRIED 4-0-1-0 (COUNCILMEMBER CORTES WAS ABSENT), to approve the following Consent Calendar Items: 3A. Approve Check Register Dated October 28, 2008 3B. Waive Full Reading of Ordinances on Agenda 3C. Approval of 10-14-2008 Minutes 3D. Approve and Appropriate Homeland Security Grant Expenditures FY 2008 3E. Continue Appropriation for Fire Station Improvements FY 2008-09 PUBLIC COMMENT Roger Kowalski,22645 Arliss Drive,indicated that he is a 36 year resident of Grand Terrace and a product of the Colton Joint Unified School District and have recently retired after a 38 year career in the Colton Joint Unified School District. He is voting yes on Measure G and is urging the voters of the City of Grand Terrace to do the same. Measure G is on the November 4`h ballot and if approved by 55% of the voters the Measure will produce 225 million dollars in bond funds and will qualify the school district for additional state matching grants that would otherwise go to other districts. Measure G funds will be used to improve existing schools and build new ones. The high school in Grand Terrace will be built but it may not be the high school that we want. Measure G funds will build the high school that we want. Measure G funds will not be used to increase administrative salaries an independent citizens oversight committee will ensure that all funds are spent as promised. He attended Colton Joint Unified School District schools that were under ten years old. It was a wonderful experience but some of the schools were bare boned and that is why he would like the schools and be completed so that we don't have to keep looking down the road when they get more money. He would like the children of today and the children of the future to have the same positive experience with schools that he did, nice, clean and fairly new. He doesn't have any children that will be attending school but he certainly wants the children of today and of the future to have the best schools possible. REPORTS Council Minutes 10/28/2008 Page 3 5A. Committee Reports -None 5B. Council Reports Mayor Ferre, questioned what the average response time is for the Deputies to respond to calls in Grand Terrace. Lt. Newcombe, responded that if he remembers correctly priority crimes averaged 2.75 or. 3 minutes. Priority 2 crimes were a little over 3 minutes and priority 3 crimes were 4 minutes and priority 4 were 5 minutes. Mayor Ferre, thanked Lt.Newcombe for coming out during the clean-up to help paint over graffiti and thanked him for being a part of this community. Mayor Pro Tem.Garcia,congratulated Walt and Monique on keeping their business,La Pasta Italia, going during these tough times. She reported that Saturday was free dump day that allowed citizens to get rid of all their unwanted items. They collected 250 cubic yards of trash. She thanked Burrtec for their support. She thanked Barrie Owens for all of her hard work and dedication. She stated that Jeff McConnell suggested maybe free-cycling, where you have something you want to get rid of but it is still functional and people can take it j before going to the landfill. She reported that the Holiday Crime Prevention will be held tomorrow. Those who are unable to attend should contact Nina Mendoza for some of the brochures that she has put together. She introduced her son Dallas that was there in his Halloween costume. She encouraged everyone to attend the Halloween Haunt that will be held on Friday, October 31, 2008 at Pico Park. Councilmember Miller,reported that Cub Scout Pack#242 along with him and Margie and a group of people helped paint some of the walls in the area of Pico and Van Buren and Gage Canal on Community Clean-up Day. While they were painting he was thinking what an incredible opportunity it would be to get the schools involved. He feels that it would be a great learning experience for them and a great way to get the community involved. Councilmember Buchanan,congratulated Acting City Manager Steve Berry,the entire staff and all of the volunteers that put together the 301h Anniversary Gala. It was an amazing event that could not have gone any better. The hall was spectacular, the food was good, the entertainment was good and there was a great group of people in attendance. He reminded everyone that the Annual Halloween Haunt will be held on Friday, October 31, 2008 from 5:00 to 8:00 p.m.at Pico Park. There will be a lot of great activities and entertainment. The Grand Terrace Country Fair,hosted by the Historical and Cultural Activities Committee,will be held on Saturday,November 1,2008 at the Lion's Community Center from 9:00 a.m. to 3:00 p.m. Council Minutes 10/28/2008 Page 4 PUBLIC HEARING -None UNFINISHED BUSINESS -None NEW BUSINESS -None CLOSED SESSION -None Mayor Ferrd adjourned the meeting at 6:26 p.m., until the next CRA/City Council Meeting which is scheduled to be held on Tuesday, November 18, 2008 at 6:00 p.m. CITY CLERK of the City of Grand Terrace MAYOR of the City of Grand Terrace I STAFF REPORT CRA() COUNCIL ITEM(X) MEETING DATE: NOVEMBER 18,2008 SUBJECT: AMENDED COOPERATIVE AGREEMENT BETWEEN COLTON AND GRAND TERRACE FOR THE BARTON ROAD BRIDGE REPLACEMENT PROJECT. RECOMMENDATIONS: APPROVE AMENDED COOPERATIVE AGREEMENT FOR BARTON ROAD BRIDGE REPLACEMENT. NO FUNDING REQUIRED X BACKGROUND: The original Cooperative Funding Agreement for the Barton Road Bridge Replacement project was entered into on January 14' 1999, between the City of Colton and the City of Grand Terrace. The original agreement under responsibilities has Grand Terrace securing the necessary bridge design contracts, agency approvals, acquisitions and constructing the new bridge. Colton's responsibility was to share in the cost for the bridge replacement. The Amended Cooperative Agreement changes the responsibilities of each jurisdiction and also changes the Total Estimated Costs and the Source of Funds. The responsibilities,Sections 3 and 4 of the Amended Cooperative Agreement changes the Lead Agency from Grand Terrace to Colton after the right-of-way acquisitions and encroachment permits are approved by CALTRANS. The process of going out to bid for the bridge construction,awarding the contracts and supervision of construction will be the responsibility of Colton. The Total Estimated Project Costs have been changed to reflect the estimated-current costs associated with the entire project. Staff was successful in obtaining additional Preliminary Engineering funds to complete the design cost. The Source of Funds Section 2.9 has been changed to reflect the funds now available for Seismic Funds Credit and Highway Bridge, Rehabilitation, and Replacement (HBRR) funds. The billing Sections 3.(D) and 4. 4.3 were omitted due to redundance with cooperating with each other in progress payments from the HBRR funds. Colton and Grand Terrace Staff met and discussed the changes and agree with the proposed Amended Cooperative Agreement. Colton introduced the Amended Cooperative Agreement to Colton City Council on November 4,2008 and obtained an approval. RECOMMENDATION: Staff recommends that City Council approve the Amended Cooperative Agreement for the Barton Road Bridge Replacement. Attachments: Amended Cooperative Agreement Original Cooperative Agreement COUNCIL AGENDA ITEM NO. 1 AMENDED COOPERATIVE FUNDING AGREEMENT FOR BARTON ROAD BRIDGE REPLACEMENT PROJECT 1. Parties and Date. This Agreement is made and entered into this day of , 2008, by and between the City of Colton("Colton") and the City of Grand Terrace ("Grand Terrace") (collectively the"Parties"). 2. Recitals. 2.1 The Parties share a boundary that runs through the approximate center of the West Barton Road overhead bridge OH (54C-0379). 2.2 Grand Terrace has secured$350,623.00 in seismic retrofit funding from the State of California Department of Transportation("Caltrans") for retrofit of the Bridge to prevent its collapse during a significant seismic event("Retrofit Project"). 2.3 The seismic retrofit design has been completed. 2.4 Because the bridge is located within the boundaries of both cities, it is necessary for the Cities to cooperate in authorizing the bridge replacement project. 2.5 The parties have decided to cooperate in seeking federal bridge replacement program("HBRR")funds to replace the entire existing bridge structure (the"Project"),with each " party contributing half of the local match requirement. 2.6 Each party has placed the Project on its Measure I,Five Year Capital Improvement Program and Twenty Year Transportation Plan to cover their respective shares of the Project and design costs. 2.7 The Project will consist of: a. Replacing the existing structure with a new bridge that would have two 12-foot lanes,two 8-foot shoulders, two 1.75-foot-wide barriers and a 4-foot walkway for a total width of 47.5 feet. The total length of the bridge will be approximately 178 feet. b. Entire transitional approaches including sidewalk(A.D.A.). C. Right-of-way acquisition. Page 1 of 5 -- Preliminary Engineering $ 350,000 -- Right-of-way $ 104,000 -- Construction $ 3,889,460 -- Construction Engineering $ 354,000 TOTAL ESTIMATED COST $ 4,697,460 2.9 Source of funds Seismic funds credit $ 350,623 HBRR Funds 88.53% $ 4,158,661 - Local Funds Grand Terrace 5.735% $ 94,088 Local Funds Colton 5.735% $ 94,088 The Parties now seek to set forth their respective obligations with respect to the funding, of the Project. P 3. Responsibilities of Grand Terrace 3.1 Grand Terrace shall be the Lead Agency of the Project through completion of right-of-way acquisitions. After right-of-way acquisitions are complete, Colton shall take over as the Lead Agency through construction. As Lead Agency, Grand Terrace shall: (a) Contract for and administer the design of the Project and pay one-half of the local matching funds required. (b) Secure necessary agency approvals for bridge design,right-of-way acquisition. (c) Cooperate with Colton in seeking reimbursement of such progress payments from HBRR funds on an expedited basis. (d) Furnish Colton with a clear, detailed statement of all costs for the Project, to date including all disbursements. Grand Terrace shall allow a representative of Colton during normal business hours to examine, audit and make transcripts or copies of any records related to the Project, and any other documents created pursuant to this Agreement. Grand Terrace shall allow inspection of all work,data,documents,proceedings and activities related to this Agreement for a period of three(3)years from the date of final payment under this Agreement. 3.2 Grand Terrace shall pay an amount equal to one-half of the local matching fund requirement. Page 2 of 5 3.3 Grand Terrace shall bear one-half of the cost of construction-related claims not covered by insurance or sources other than the Parties, one-half the cost of the defense of any of these claims not covered by insurance or sources other than the Parties, and one-half the cost of any other items resulting from the construction contract not covered by insurance or sources other than the Parties, excluding items governed by the indemnification provisions of this Agreement. 4. Responsibilities of Colton 4.1 Colton shall take over as Lead Agency after.the right-of-way acquisitions have been approved by Caltrans. (a) Colton shall advertise, open and review bids, and award the construction contract for the Project. (b) Administer and construct the project by contract in accordance with the plans and specifications. (c) Consult with and obtain Grand Terrace approval on all change orders costing$5,000.00 or more. (d) Upon completion of the Project all work incidental thereto,furnish Grand _ Terrace with a detailed statement .of the portion of construction costs segregated to be borne by. the Parties, including resolution of any construction related claims which have been allowed to the construction contractor, and including all reimbursements from state and federal funds. 4.2 Colton shall pay for one-half the local matching funds. 4.3 Colton shall pay an amount equal to one-half of the local match portion of the project costs. 4.4 . Colton shall cooperate with Grand Terrace in seeking reimbursement of progress payments from HBRR funds on an expedited basis. 4.5 Colton shall bear one-half of the cost of construction-related claims not covered by insurance or sources other than the Parties, one-half the cost of the defense of any of these claims not covered by insurance or sources other than the Parties, and one-half the cost of any other items resulting from the construction contract not covered by insurance or sources other than the Parties, excluding items governed by the indemnification provisions of this Agreement. Page 3 of 5 5. Joint Responsibilities. 5.1 The Parties will cooperate in formulating the Project design and submitting an application for HBRR funds. 5.2 All state and federal laws, rules and policies relating to the use of state and federal funds shall apply to the Project. 5.3 After opening of bids for construction of the Project, the Parties' estimate of costs will be revised based on actual bid prices. r 5.4 If, upon opening of bids for the Project, the lowest bid is not more than 10%over the estimated cost,the Parties may conduct a joint review of the bids immediately following opening of bids and prior to award of the contract. After,the joint review and within the time allowed for award, Colton may award the construction contract for the Project. 5.5 If upon joint review of the bids, Grand Terrace, by written notice to Colton, elects not to proceed with the Project,thereby causing Colton to reject all bids, Grand Terrace agrees to pay Colton for all Project-related costs incurred by Colton including all legal costs and damages resulting from rejection of all bids for the Project. , 5.6 If upon joint review of the bids, Colton elects not to proceed with the Project, Colton agrees that it shall remain solely responsible for all Project-related costs,including all legal costs and damages from rejection of all bids for the Project, and further to pay Grand Terrace for any and all costs, including legal costs incurred by Grand Terrace. 5.7 If, upon opening of bids for the Project, it is found that the lowest responsible bid exceeds the estimated cost by more.than 10%, the Parties shall consult upon a course of action within the time allowed under the proposal documents. 5.8 If termination of this Agreement is by mutual consent,each Party will bear one- half of the costs not covered by sources other than the Parties. 5.9 In the event that HBRR funds are not released,the cities of Grand Terrace and Colton will share equally in actual construction cost. 5.10 In the construction of the Project, Grand Terrace may, at no cost to Colton, furnish a representative,if it so desires, and said representative,the project administrator, and the design engineer may consult with each other in all matters concerning the Project construction contract. 5.11 Upon completion and acceptance of the Project construction contract, each Party will accept control of and maintain, at its own expense, those portions of the Project within its own jurisdiction. Page 4 of 5 S 5.12 Execution of this Agreement by Grand Terrace grants to Colton and the construction contractor the right to enter upon lands owned by Grand Terrace to construct the Project. 5.13 Upon completion of all work under this Agreement, ownership and title to materials,equipment and appurtenances installed within each Party's jurisdiction will automatically be vested in that party. No further agreement will be necessary to transfer ownership as hereinabove stated. However, both parties agree to execute all documents as are necessary to transfer such ownership. 5.14 Right-of-way acquisition cost shall be a part of the entire project cost. 5.15 Nothing in this Agreement is intended to create duties or obligations to or rights in third parties not parties to this Agreement or affect the legal liability of either part to the Agreement by imposing any standard of care with respect to the maintenance of the bridge different from the standard of care imposed by law. 5.16 Each party(the"Indemnifying Party")shall defend, indemnify or hold the other Party,its officials, officers, employees and agents free and harmless from any and all liability from loss,damage,or injury to property or persons,including wrongful death, in any manner arising out of or incident to any negligent acts, omissions or willful misconduct of the pier- :Eying Party arising out of or in connection with the Indemnifying Party's performance of thit. --eement, including without limitations the payment of attorney's fees,the other Party,its 01 _ —s,officers,employees, and agents in any legal action based upon such negligent acts, omissions or willful misconduct. I 5.17 No alteration or variation of the terms of this Agreement shall be valid unless mach a writing and signed by the parties here to and no oral understanding or agreement not incorp�--rated herein be binding on either of the Parties. CITY OF COLTON CITY OF GRAND TERRACE City Manager City Manager APPROVED AS TO FORM: APPROVED AS TO FORM: City Attorney City Attorney Page 5 of 5 6 L,iw L l r u r tJL4U1lvU HUtCCLNJV rN 1 1'UK BARTON ROAD BRIDGE REPLACEMENT PROJECT l. Parties and Date. This Agreement is made and entered into this day of_, It r��r�z r�.; - , 1999, by and between the City of Colton ("Colton") and the City of Grand Terrace ("Grand Terrace") (collectively the "Parties ). 2. Recitals. r— 2.1 The Parties share-a boundary that runs through the approximate center of the West Barton Road overhead bridge OH(54C-0379). 2.2 Grand Terrace has secured$208,400.00 in seismic retrofit funding from the State of California Department.of Transportation("Caltrans") for retrofit of the Bridge to prevent its collapse during a significant seismic event("Retrofit Project"). 2.3 The seismic retrofit design has been completed. 2.4 Because the bridge is located within the boundaries of both cities, it is necessary for the Cities to cooperate in authorizing the bridge replacement project. 2.5 The parties have decided to cooperate in seeking federal bridge replacement program ("HBRR") funds to replace the entire existing bridge structure (the "Project"), with each party contributing half of the local match requirement. i 1 2.6 Each party has placed the Project on its Measure I Five Year Capital Improvement Program and Twenty Year Transportation Plan to cover their respective shares of the Project and design costs. 2.7 The Project will consist of: a. Replacing the existing structure with a new bridge that would have two 12-foot lanes, two 8-foot shoulders, two 1.75-foot-wide barriers and a 4-foot walkway for a total width of 47.5 feet. The total length of the bridge will be approximately 178 feet. b. Entire transitional approaches including sidewalk (A.D.A.). b. Right-of-way acquisition. CONTRACT�GROEMFWr NUMBER &-�c 7 — Right-of-way $ 100,000 — Construction $ 922,000 Construction Engineering $ 100,000 TOTAL ESTIMATED COST $1,227,000 2.9 Source of funds Seismic funds credit $208,400 HBRR Funds 88.53% $901,766 Local Funds Grand Terrace 5.735% $ 58,417 Local Funds Colton 5.735% $ 58,417 r ` The Parties now seek to set forth their respective obligations with respect to the funding, of the Project. 3. R=nsibilities of Grand Terrace 3.1 Grand Terrace shall be the Lead Agency of the Project. As Lead Agency, Grand Terrace shall. (a) Contract for and administer the design of the Project and pay one-half of the local matching funds required. (b) Secure necessary agency approvals of design, right-of-way acquisition and authority to advertise. Advertise, open and review bids, and award the construction coact for the Project. - 1 (c) Administer and construct the project by contract in accordance with the plans and specifications. (d) Bill Colton, at least 10 days in advance, for each progress payment as provided for in,the construction contract. (e). Cooperate with Colton in seeking reimbursement of such progress payments from HBRR funds on an expedited basis. (f) Furnish Colton with a clear, detailed statement of all construction and other costs for the Project, including all disbursements. Grand Terrace shall allow a representative of Colton during normal business hours to examine, audit and make transcripts or copies of any records related to the Project, and any other documents created pursuant to this Agreement. Grand Terrace shall allow inspection of all work, data, documents; proceedings and activities related to this Agreement for a period of three(3)years from the date of final payment under this Agreement. (g) Consult with and obtain Colton's approval on all change orders costing $5,000 or more. Parties, including resolution of any construction related claims which have been allowed to the construction contractor, and including all reimbursements from state and-federal funds. 3.2 Grand Terrace shall pay an amount equal to one-half of the local matching fund requirement. 3.3 Grand Terrace shall bear one-half of the cost of construction-related claims not covered by insurance or sources other than the Parties, one-half the cost of the defense of any of these claims not covered by insurance,or sources other than the Parties,and one-half the cost of any other items resulting from the construction contract not covered by insurance or sources other than the Parties, excluding items governed by the indemnification provisions of this Agreement. 4. Responsibilities of Colton 4.1 Colton shall pay for one-half the local matching funds. 4.2 Colton shall pay an amount equal to one-half of the local match portion of the project costs. 4.3 Colton.shall pay to Grand Terrace,.at least three business days in advance, one- half of each progress payment as provided for in the construction contract. 4.4 Colton shall cooperate with Grand Terrace in seeking reimbursement of progress payments from HBRR funds on an expedited basis. 4.5 Colton shall bear one-half of the cost of construction-related claims not covered by insurance or sources other than the Parties, one-half the cost of the defense of any of these claims not covered by insurance or sources other than the Parties, and one-half the cost of any other items resulting from the construction contract not covered by insurance or sources other than the Parties, excluding items governed by the indemnification provisions of this Agreement. 5. .Joint Resnonsibilitiec. 5.1 The Parties will cooperate in formulating the Project design and submitting an application for HBRR funds. 5.2 All state and federal laws, rules and policies relating to the use of state and federal funds shall apply to the Project 5.3 After opening of bids for construction of the Project, the Parties' estimate of costs will be revised based on actual bid prices. 5.4 If, upon opening of bids for the Project, the lowest bid is not more than 10% over the estimated cost, the Parties may conduct a joint review of the bids immediately following opening of bids and prior to award of the contract. After the joint review and withing the time allowed for award, Grand Terrace may award the construction contract for the Project. a pay Grand Terrace for all Project-related costs incurred by Grand Terrace including all legal costs and damages resulting from rejection of all bids for the Project. 5.6 If upon joint review of the bids, Grand Terrace elects not to proceed with the Project, Grand Terrace agrees that it shall remain solely responsible for all Project-related costs, including all legal costs and damages from rejection of all bids for the Project, and further to pay Colton for any and all costs, including legal costs incurred by Colton. 5.7 If; upon opening of bids for the Project,it is found that the lowest responsible bid exceeds the estimated cost by more than 10%,the Parties shall consult upon a course of action within the time allowed under the proposal documents. 5.8 If termination of this Agreement is by mutual consent, each Party will bear one- half of the costs not covered by sources other than the Parties. 5.9 -In the event that HBRR funds are not released the cities of Grand Terrace and Colton will share equally in actual construction cost. 5.10 In the construction of the Project, Colton may, at no cost to Grand Terrace, furnish a representative, if it so desires, and said representative, the project administrator, and the design engineer may consult with each other in all matters concerning the Project construction contract. 5.1-1 Upon completion and acceptance of the Project construction contract, each Party will accept control of and maintain, at its own expense,those portions of the Project within its own jurisdiction. 5.12 Execution of this Agreement by Colton grants to Grand Terrace and the construction contractor the right to enter upon lands owned by Colton to construct the Project. 5.13 Upon completion of all work under this Agreement, ownership and title to materials, equipment and appurtenances installed within each Parry's jurisdiction will automatically be vested in that party. No further agreement will be necessary to transfer ownership as hereinabove stated. However, both parties agree to execute all documents as are necessary to transfer such ownership. 5.14 Right-of-way acquisition cost shall be a part of the entire project cost. 5.15 Nothing in this Agreement is intended to create duties or obligations to or rights in third parties not parties to this Agreement or affect the legal Liability of either part to the Agreement by imposing any standard of care with respect to the maintenance of the bridge different from the standard of care imposed by law. 5.16 Each party (the "Indemnifying Party") shall defend, indemnify or hold the other Party, its officials,officers, employees and agents free and harmless from any and all liability from loss, damage, or injury to property or persons, including wrongful death, in any manner 1� ULLmli izi, uuiccrs, employees, ana agents in any legal action based upon such negligent acts, omissions or willful misconduct. 5.17 No alteration or variation of the terms of this Agreement shall be_valid unless made in writing and signed by the parties here to and no oral understanding or agreement not incorporated herein be binding on either of the Parties. CITY OF COLTON CITY OF GRAND TERRACE City Manager City Manager APPROVED AS TO FORM: APPROVED AS TO FORM: A City Attorney City Attorney r` l 11 CITY OF GRAND TERRACE RECEIVE[ EMERGENCY OPERATIONS COMMITTEE Regular Meeting i JV 05 2008 MINUTES October 7, 2008 CITY OF GRAND TERRAC CITY CN-ERK'S DEPARTME The Grand Terrace Emergency Operations Committee met at the regular time at the Emergency Operations Center at 22795 Barton Road, Building 3. The meeting was called to order by Chairperson, Vic Pfennighausen 6:00 p.m. Agendas were distributed. MEMBERS PRESENT—Vic Pfennighausen, Susan Taylor, JoAnn Johnson, Debra Hurst, Robert Ir Stewart, Glenn Nichols, Hanni Bennett and Lew Neeb. MEMBERS ABSENT—Jim Vert, Randy Halseth and Oscar Santana. CITY STAFF—Steve Berry, Acting City Manager GUESTS PRESENT/INTRODUCTIONS—No guests. CORRESPONDANCE/COMMUNICATIONS—None. APPROVAL OF AGENDA with motion by Lew Neeb and second by Glenn Nichols. APPROVAL OF MINUTES OF SEPTEMBER 2, 2008 with motion by Lew Neeb and second by Susan Taylor. LIAISON REPORT by Steve Berry. a. Make a Difference Day coming up on October 251h from 7:30 am to 11:00 am. with two volunteer check in stations: Pico and Reed and also DeBerry and Willit. b. Will clean up the 1.5 miles of graffiti along the Gage Canal. Paint will be provided but volunteers are asked to bring brushes and rollers. c. Neighborhood Watch Program on October 291h from 6:30 to 8:30 pm at City Hall. Information from the Sheriffs Department presented by Citizen Patrol. d. Halloween Haunt will beat Pico Park on October 31" from 5 to 8 pm. Magician and Escape Artist will be performing and there will be lots of candy. e. Gala Dinner will be held at Robinson Hall at Christ the Redeemer on Oriole St on October 17`h . f City Birthday Party will be held on December 9`h with City Council following. .g. Someone will be calling back on the Travelers Radio System. We should be able to purchase a minimal system for the FEMA funds ($5000) and add to it. h. This system is licensed by the FCC. EQUIPMENT AND FACILITIES REPORT by Vic Pfennighausen a. Vic has spent a lot of time trying to corral the information on the Satellite telephone which was provided by FEMA. The State does not use these phones. b. The State will send information on how to get into their system which can send pictures and considerably more data. Theirs appears to be much superior to ours. COUNCIL AGENDA ITEM NO. CA— 1 c. San Bernardino County has about 70 of the FEMA provided Satellite Phones but only about 3 or 4 have been activated. It seems primarily to be because they don't want to pay the monthly charge. d. Vic indicates that he has run into many road blocks but that we will use what we have and make the best of it. e. Ten MURS (Multi Use Radio Service) radios have been purchased for CERT. Bob Stewart has programmed all of them. Some of these radios will be assigned to individual members and there must be an accurate list of who is responsible for each one. f. The Base Station to be used by CERT arrived and was the wrong one so has been re- ordered and will be used at Randy Halseth's house. It can also be used in his truck. ' g. CERT will primarily be using Channel 2 while EOC will be using Channel 1. - h. It is important that all MURS radios be conditioned once a month. This involves completely discharging the batteries and then recharging them. CERT members will be responsible for doing this to the radios assigned to them. i. CERT needs to think about having a weekly NET so that all members who have the possession of a radio will be kept abreast of current events and use of the radio. EOC does this presently on Monday mornings at 10 o'clock. j. The Travelers Radio has been covered somewhat above. It will-be a 10 Watt system licensed by the FCC and can be programmed from outside and can carry city events. It can never be used for sales. k. Vic questioned if it is certain that the city Generator is operating properly in the event of a power failure. Steve does believe that it is. 1. Have received a battery and will be installing it in the EOC trailer. m. Will be painting the small trailer and putting logos on it. _ UNFINISHED BUSINESS—Nothing. NEW BUSINESS a. Work Day at the EOC is still Monday mornings from 9 to 11 although Vic is also available in the afternoon most Mondays.. b. CERT will also be having a yard sale at the City News Group lot this weekend. c. CERT classes started tonight at Loma Linda Fire Station. d. EOC and CERT were recognized at City Council. e. Would very much like to have the garage next door to the EOC to be-converted into an office for CERT. Randy has indicated that he will see that the conversion is completed and that the cost will only be for materials. f. Vic continues to urge us to make arrangements for a new Chairperson. He is quite anxious to retire from the Chairperson, but will be willing to help the new person. Please think about what could possibly be done. TRAINING/SPEAKERS AD RNMEN 6:52 p.m. A G� JgAnn Johnsory, Secretary NEXT MEETING WILL BE TUESDAY, NOVEMBER 4, 2008 AT 6 P.M. Historical & Cultural Activities Committee 1V 0 't 2008 Minutes for October 6, 2008 :;ITY OF GRAND TERRACE The meeting was called to order at 7:05 p.m. by Chairman Pauline Grant. `WXsgL5fK0n9 effMENT Pauline Grant,Colleen Edmundson,Gloria Ybarra,City Clerk Brenda Mesa,Frances Carter, Shelly Rosenkild, Masako Gifford and Ann Petta.. Secretary's Report: The minutes for September 8, 2008 were read. For clarification: Frances is a board member of the Woman's Club and not a charter member. The volunteer mentioned is Shirley Hogue and not Rosemary Horner. After corrections,the minutes were approved on a motion by Ann, Seconded by Colleen. Treasurer's Report: The budget shows a balance,,of$1,179.80. The petty cash balance is $98.53. Colleen accepted a receipt in the amount of$8.40 from Gloria for postage stamps. Historical Report: Steve Peter,Editor of the Blue Mountain Outlook,contacted Ann and wondered if Ann could do a monthly historical report for the next 5-6 months. Since the cable channel has covered much of the history of the city via cable through Tony Petta, Mayor Maryetta Ferre and others, Ann thought it would only be-repeating much of the same information already featured on cable. Ann then suggested that since we have long-time residents who have never been interviewed, it would be a good idea to interview them. She added that it would also be very interesting for the community to learn of these residents early memories of Grand Terrace and would be valuable for our historical records as well. In closing, Ann then gave Mr. Peter some names of people he could contact for interviews. Old Business: 271h Annual Country Fair, Saturday, November 1, 2008 Ann reported that we currently have 14 Fair applications. She advised that we have 11 food entries and 2 entries for the children's cookie contest. Ann added that we need at least 6 chili-entries. She will continue to contact people for Fair applications. Shelly will deliver the Fair posters to Brenda. Colleen will then distribute the posters which will be gold in color. Shelly will tend to the advertising of the Fair which includes an updated article on the Fair and any added revisions regarding the advertisements. Ann advised that after speaking to David Navarro of Music Productions, Mr. Navarro will not be providing the music for the Fair. Ann also contacted Marcus Welch,a strolling magician,who has agreed to entertain for free and may perform between 10:00 a.m. and 2:00 p.m. Colleen has generously contributed 3 meal tickets for Mr. Welch and companions for his much appreciated contributions. Ann will also contact Bowen Hayes of the City's School of the Arts. She is confident that the group will perform during the entertainment portion of the program. COUNCIL AGENDA ITEM NO. 5H ' 1 Colleen will coordinate with Shelly in checking the list of supplies for the Fair. The committee reviewed the menu and menu price list. After minor changes, the committee approved the menu. Shelly will reprint the revised menu. Food Contest Judges: the names of the judges were discussed and they are: 1. Nancy Austin, Woman's Club President 2. Tim Prado, Lions Club President 3. Jessica Borzilleri, Chamber of Commerce President 4. Maryetta Ferre, Mayor 5. Steve Berry, Acting City Manager Pauline will contact the prospective judges for confirmation. Frances will tend to the ballots used in the judging for the food contest. Ann will supply the certificates and Pauline will supply the prize ribbons for the contest winners. The committee reviewed and accepted the awards program. Tony Petta will be the Master of Ceremonies and City Mayor Maryetta Ferre will assist with the awards. Opportunity Drawing: Donated items for the drawing are: 1. A plant(Ann) - 2. Candy pyramid (Gloria) 3. Kitty Cat figurine (Masako) 4. Handmade item(Shelly) Pauline and Maryetta will also donate an item. Colleen will supply 6 ticket containers for the drawing. The committee reviewed the amended guidelines to the Fair, dated 2006. Amendments discussed were: 1. Children's cookie contest participants must be 10-17 years old. 2. No food sold other than produce. 3. No Fair applications will be accepted on the day of the Fair. 4. Fair applications must be sent to City Hall no later than one week prior to the Fair. Brenda will make copies of the amended guidelines. Ann proposed that next year participants should be provided name tags for identification. The committee agreed. Other items discussed: Pauline will purchase two dozen donuts for sale at the food counter. Shelly will provide a boom-box for background music. Ann reported that currently some participants/items at the Fair are: plants, gourd art, quilting/knitting, train-man, city scouts and 4-H. Banners for advertising: After discussion,the committee decided that the banners will be discussed after the Fair and that we can use what we now have for advertising for this year's Fair. The meeting was adjourned at 8:05 p.m. The next meeting will be November 3, 2008. R4ectfully_5til3r qted, Gloria Ybarrr Secretary 3 STAFF REPORT SHERIFF'S DEPARTMENT CRA ITEM O COUNCIL ITEM (X) EETING DATE: November 18, 2008 SUBJECT: WE TIP MEMBER CITY PROGRAM FUNDING REQUIRED: YES (X) NO ( ) WeTip's Member City Program offers the WeTip anonymous hotlines to city officials, law enforcement, merchants and neighborhoods in the city; WeTip's hotline is a way for people to get involved in establishing a safer community by reporting crimes or events without fear of reprisal from people they are reporting against. The biggest advantage is that as a member city all.tips will be funneled directly to the Lieutenant in charge of Grand_Terrace and one of his designees. Currently, if a citizen from Grand Terrace calls a WeTip hotline to report a crime, that tip goes to the Sheriffs Narcotics Division. If the tip is not related to narcotics it will likely be thrown away or forwarded with delay. Additionally, as a member city,we would have access to the member website where we can post wanted flyers and incident specific information. WeTip will provide marketing materials and make presentations at city functions and service club functions to let the community know about the advantages of the WeTip program. WeTip also has a reward program and will pay rewards up to $1000.00 upon successful conviction with no limit on the number of rewards paid. WeTip will tailor their program to our needs and will work closely with-the city and the Sheriffs Department to produce the most success possible out of the program. Staff recommends that Council approve participation,in the WeTip program and appropriate$ 1500.00 annually. COUNCIL AGENDA ITEM NO.�,� STAFF REPORT CITY MANAGER'S OFFICE CRA ITEM () COUNCIL ITEM (X) MEETING DATE: November 18,2008 SUBJECT: RESOLUTIONS ELECTING TO BE SUBJECT TO PUBLIC - EMPLOYEES'MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO i MEMBERS OF A SPECIFIC EMPLOYEE ORGANIZATION AND FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES AND THE EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS. FUNDING REQUIRED: YES (X) NO () STAFF RECOMMENDATION: This item has been discussed in closed session and if appropriate Staff recommends that Council adopt two resolutions electing to be subject to public employees' medical and hospital care act only with respect to members of a specific employee organization and fixing the employer's contribution for employees and the employer's contribution for annuitants at different amounts and also take appropriate action pertaining to the employees and annuitants of the City of Grand Terrace following the personnel negotiations closed session item. Two resolutions are required to be adopted and they are attached: 1. General Employees and Annuitants 2. Child Care Center Employees and Annuitants COUNCIL AGENDA ITEM NO. 1 nV,3V1,U 1 WIN ELECTING TO BE SUBJECT TO PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO MEMBERS OF A SPECIFIC EMPLOYEE ORGANIZATION AND FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES AND THE EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS WHEREAS, (1) Government Code Section 22922(b) provides that a contracting agency may elect upon proper application to participate under the Public Employees' Medical and Hospital Care Act with respect to a recognized employee organization only; and WHEREAS, (2) Government Code Section 22892(c) provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer's contribution for annuitants at different amounts provided that the monthly contribution for annuitants shall be annually increased by an amount not less than 5 percent of the monthly contribution for employees, until such time as the amounts are equal; and WHEREAS, (3) The City of Grand Terrace, hereinafter referred to as Public Agency is a local agency contracting with the Public Employees' Retirement System; and WHEREAS, (4) The Public Agency desires to obtain for the general members of The City of Grand Terrace, who are employees and annuitants of the agency, the benefit of the Act and to accept the liabilities and obligations of an employer under the Act and Regulations; now, therefore, be it RESOLVED, (a) That the Public Agency elect, and it does hereby elect, to be subject to the provisions of the Act; and be it further RESOLVED, (b) That the employer's contribution for each employee shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of family members, in a health benefits plan or plans up to a maximum of Blue Shield Net Value Los Angeles County Region, single party basic/supplemental plus administrative fees and Contingency Reserve Fund assessments; and be it further RESOLVED, (c) That the employer's contribution for each annuitant shall be the amount necessary to pay the cost of his enrollment, including the enrollment of his family members, in a health benefits plan up to a maximum of$1.00 per month; and be it further RESOLVED, (d) That the employer's contribution for each annuitant shall be increased annually by 5% percent of the monthly contribution for employees, until such time as the contributions are equal; and that the contributions for employees and annuitants shall be in addition to those amounts contributed by the Public Agency for administrative fees and to the Contingency Reserve Fund; and be it further NEW PERS GROUP UNEQUAL 3 FIXED i -2- RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and direct, Brenda Mesa, City Clerk to file with the Board of Administration of the Public Employees' Retirement System a verified copy of this Resolution, and to perform on behalf of said Public Agency all functions required of it under the Act and Regulations of the Board of Administration; and be it further RESOLVED, (f) That coverage under the Act be effective on February 1, 2009. Adopted at a regular/special meeting of the City Council of the City of Grand Terrace at Grand Terrace, CA this 18`h day of November 2009. Signed: Attest: Maryetta Ferre',Mayor Brenda Mesa, City Clerk NEW PERS GROUP UNEQUAL 3 FIXED 3 ..L,�.,L�1 i�iv L'LL'U t I i TO BE SUBJECT TO PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO MEMBERS OF A SPECIFIC EMPLOYEE ORGANIZATION AND FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES AND THE EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS WHEREAS, (1) Government Code Section 22922(b) provides that a contracting agency may elect upon proper application to participate under the Public Employees' Medical and Hospital Care Act with respect to a recognized employee organization only; and WHEREAS, (2) Government Code Section 22892(c) provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer's contribution for annuitants at different amounts provided that the monthly contribution for annuitants shall be annually increased by an amount not less than 5 percent of the monthly contribution for employees, until such time as the amounts are equal; and WHEREAS, (3) The City of Grand Terrace, hereinafter referred to as Public Agency is a local agency contracting with the Public Employees'Retirement System; and WHEREAS, (4) The Public Agency desires to obtain for the members of The City of Grand Terrace, Child Care Center, who are employees and annuitants of the agency, the benefit of the Act and to accept the liabilities and obligations of an employer under the Act and Regulations; now, therefore, be it M RESOLVED, (a) That the Public Agency elect, and it does hereby elect, to be subject to the provisions of the Act; and.be it further RESOLVED, (b) That the employer's contribution for each employee shall be the amount necessary to pay the full cost of his/her enrollment, in a health benefits plan or plans up to a maximum of the amount specified in G.C. Section 22892 plus administrative fees and Contingency Reserve fund assessments; and be it further RESOLVED, (c) That the)employers contribution for each annuitant shall be the amount necessary to pay the cost of his enrollment, including the enrollment of his family members, in a health benefits plan up to a maximum of$1.00 per month; and be it further RESOLVED, (d) That the employer's contribution for each annuitant shall be increased annually by 5% percent of the monthly contribution for employees, until such time as the contributions are equal; and that the contributions for employees and annuitants shall be in addition to those amounts contributed by the Public Agency for administrative fees and to the Contingency Reserve Fund; and be it further RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and direct, Brenda Mesa, City Clerk to file with the Board of Administration of the Public Employees' Retirement System a verified copy of this Resolution, and to perform NEW PERS GROUP UNEQUAL 3 FIXED 4 ---- - --K« %ji aaw r uutic Hgency all functions required of it under the Act and Regulations of the Board of Administration; and be it further RESOLVED, (f) That coverage under the Act be effective on February 1, 2009. Adopted at a regular/special meeting of the City Council of the City of Grand Terrace at Grand Terrace, CA this 181h day of November 2009. Signed: Maryetta Ferre', Mayor Attest: Brenda Mesa, City Clerk NEW PERS GROUP UNEQUAL 3 FIXED 5 Pagel of 3 CALIFORNIA Staff Report Finance Department CRA ITEM O COUNCIL ITEM(X) MEETING DATE: November 18, 2008 AGENDA rmE i To: Honorable Mayor and Council Members From: Bernie Simon, Finance Director, and Larry Ronnow, Former Finance Director SUBJECT: Actuarial Valuation Report—Post-retirement Medical Benefits 1) Approve Actuarial Valuation of the City of Grand Terrace Proposed Post- retirement Health Insurance 2) Adopt"Pay as You Go Method"to fund Proposed Post-retirement Health 1 Insurance FUNDING REQUIRED NO FUNDING REQUIRED XX This item will be discussed in closed session and is placed on the agenda for potential action. BACKGROUND: Staff is proposing to join the PEMCHA program to reduce the overall current health insurance rate and to provide retirees access to group health insurance. By statute, public agencies in California are eligible to contract with CalPERS to participate in the PEMHCA program. A key consideration is that the employer must-agree to provide access to the health insurance to both active employees and annuitants on an equal basis. The contribution levels are set in statute. However, new contracting agencies may elect to have a different contribution level for retiree health insurance in which the employers' contribution may be increased annually over twenty years until it reaches the same employer contribution as active employees. Under this method, the initial employers' cost is very minimal for retiree health since most of the cost is borne by the retiree. In addition, parity can be accomplished over time, giving the City flexibility to address changing budget conditions. COUNCIL AGENDA ITEM NO. 1 Page 2 of 3 Actuarial Valuation Under Government Accounting Standards Board Statement 45 (GASB 45)governmental agencies are required to account for other post employment benefits (OPEB) on an accrual basis rather than an actual cost paid basis. The accrual basis will allocate an estimated future cost for current employees who could possibly be covered for post- retirement health insurance, potential increases in premiums, less anticipated increases in funding, calculated in present value dollars to determine the potential future liability. Ca1PERS also recommended,that an actuarial valuation be conducted to disclose the potential costs to the governing board. Staff contracted with Buck Consultants of San Diego to prepare the required actuarial valuation report of the City's proposed post retirement medical benefit program. Mr. James A. Summers, F.S.A., M.A.A.A., Director and Consulting Actuary of the firm completed it. Mr. Summers will be in attendance on November 18 to answer questions. (See attached valuation report.)The actuarial is based on 35 current employees and 11 potential retirees. Eligibility coincides with the PERS requirement of age 50 with 5 years of service. Other valuation assumptions are listed on Appendix A of the report. Funding Methods There are two methods to fund the retiree health program"Pay As You Go" and Pre- Funding(full or partial). Funding methods pertain to the accrual expense and accrued liability reported. Pay As You Go Method "Pay as you go", using a 4.5% discount rate, requires a smaller annual contribution but incurs an immediate unfunded liability. Annual estimated costs under this method are shown•on page 4, Table 3. The cumulative total for the first three years is only$8,084. The required City contributions are very small initially but increase over time. In the case of"pay as you go" for Grand Terrace,the Net OPEB Obligation, or liability, would be $142,000 as of June 30, 2009, with the present value of projected benefits(the unfunded actuarial accrued liability) for the plan at $1.4 million, shown as APBO (Accumulated Postretirement Benefit Cost)on page 2, less any assets held for the plan. Again, under `pay as you go' we would have no assets for that purpose, but neither are we required to have any. The Net OPEB must be recorded as a liability on our financial statements, and it will grow annually by an estimated 4.5%if we never do any pre-funding. Full Pre-Funding Method The other method shown is Full Pre-Funding which uses a 7.75% discount rate. Under this scenario a level annual payment is made into an irrevocable trust and it eliminates the net liability on the City's balance sheet. Table 2B on page 3 of the report indicates the annual amount to be $63,000. It is important to note that the annual amount of pre- funding can be less to accommodate cash flow and budget constraints, but then some liability will again be generated for the balance sheet,though not the full amount under `pay as you go'. Another benefit of partial pre-funding would be a higher interpolated discount rate, which in turn would lower the net liability and the annual required contribution. 2 Page 3 of 3 SUMMARY Under GASB 45, public agencies must calculate and report the future projected Other Post Employment Benefits(OPEB) costs on their financial statements similar to the way future pension obligations are reported. The actuarial valuation accomplishes the potential future cost calculation and discloses the present value of the potential future liability. Initially, the City's outlay for retiree benefits would be relatively minimal in the first few years of the plan under the `pay as you go' method, especially if we continue to experience the built in savings of lower rates and rate growth of PERS Health as compared to likely large annual increases of PacifiCare and other carriers. However, the City must participate in the program for 20 years before retirees receive the same City contribution as active employees. This allows the City to budget for increases over time, rather than be subjected to an immediate fiscal burden. Conversely, our retired employees will be offered very favorable health premium rates that otherwise would not be available to them, while the City contributes an additional 5%of the premium cost annually until parity is reached. FISCAL IMPACT: None by the approval and acceptance of the actuarial valuation. RECOMMENDATION: Staff recommends that Council: 1) Approve Actuarial Valuation Report of the City of Grand Terrace Proposed Post- retirement Health Insurance as presented in report dated November 11, 2008 as prepared by Buck Consultants, and 2) Adopt the"Pay As You Go" method for funding Post-retirement Health Insurance, and consider the Pre-Funding option as part of the FY 2009-10 Budget process. Attachments: Actuarial Valuation Report dated November 11, 2008 prepared by Buck Consultants 3 an ACs C®mpany A s November 11, 2008 Ms. Jo Verhelle " Assistant to the City Manager City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92312 RE: City of Grand Terrace—GASB 45 Valuation as of July 1,2008 Dear Ms. Verhelle: Government Accounting Standards Board(GASB) Statement Number 45 provides new disclosure requirements for Other Postemployment Benefit(OPEB)plans effective as early as plan years beginning after December 15,2006. This letter provides the results of an actuarial valuation of the proposed City. of Grand Terrace postretirement medical plan effective as of July 1, 2008. The following outlines our understanding of the proposed City of Grand Terrace(the City)retiree medical plan provisions that were used for this valuation(the substantive plan): • Postretirement medical coverage will be offered to retiring employees with at least 5 years of service. • The City will contribute the Ca1PERS "unequal" contribution for retirees based on the single active employee contribution and the retiree will pay the remaining amount of the monthly premium. • It is assumed that most retirees over age 65 will have Medicare Parts A and B and mill select a lower cost Medicare supplement plan. 1615 iAUrray Canyon Road: Suite 602 - San Diego.CA 92108.4320 619.297 4930 - 619.297.5220(fax) d Ms. Jo Verhelle November 11, 2008 Page 2 General Results Tables.IA and 1 B summarize the Expected Postretirement Benefit Obligation (EPBO)and Accumulated Postretirement Benefit Cost(APBO)as of July 1, 2008 for active employees and retirees eligible for the proposed program. The EPBO is L defined as the actuarial present value of the benefits expected to be paid to current and future retirees under the plan. The APBO-is the amount of the EPBO that has been earned to date based on the service rendered by currently active employees.. The tables also show the normal cost, which-is the amount of benefit to be earned by active employees for service in the fiscal year July 1, 2008 through June 30,2009. Table IA (Pay-As-You-Go Result) EPBO and APBO as of July 1, 2008 using a 4.5%Discount Rate EPBO APBO Normal Cost Actives $1,882,000 $1,104,000 $95,000 Retirees 302.000 302,000 0 Total $2,184.000 $1,406,000 $95,000 Table 1B (Full Pre-Funding Result) EPBO and APBO as of July 1, 2008 using a 7.75%Discount Rate EPBO APBO Normal Cost Actives $789,000 $518,000 $39,000 Retirees 187.000 187.000 0 Total $976,000 $705,000 $39,000 GASB)Statemeut 45 requires the calculation of an Annual Required Contribution (ARC)consisting of the Normal Cost and a not greater than 30 year amortization of the Unfunded Actuarial Accrued Liability(UAAL). There is no requirement for the City to actually fund this amount. The UA.AL is the Accumulated Postretirement Benefit Obligation (APBO) less.any assets held for the plan. Most govermnent buck 5 Ms. Jo Verhelle November 11, 2008 Page 3 postretirement plans are currently on a pay-as-you-go basis with no dedicated assets or funding scheme. Table IA presents the pay-as-you-go result using a 4.5% discount rate and Table 1 B presents the result using a 7.75%discount rate assuming the ARC is fully funded to a dedicated, irrevocable trust. For fiscal years beginning after December 15,2006 the GASB statement requires that these plan liabilities be recognized on an accounting basis if not through an actual pre-funding arrangement. Tables 2A and 2B develop the estimated ARC for fiscal year July 1, 2008 through June 30, 2009 under the two funding scenarios. Table 2A(Pay-As-You-Go Result at 4.5%) Annual Required Contribution for the 2008-2009 Fiscal Year Total APBO $1,406,000 Assets 0 UAAL $1,406,000 Annual Required Contribution Normal Cost $95,000 I 30 Year Amortization of UAAL 47.000 = Estimated ARC $142,000 Table 2B (Full Pre-Funding Result at 7.75%) Annual Required Contribution for the 2008-2009 Fiscal Year Total APBO $705,000 Assets 0 UAAL $705,000 Annual Required Contribution Normal Cost $391000 30 Year Amortization of UAAL 24.000 Estimated ARC $63,000 'Table 3 shows the undiscounted postretirement medical cash flows over the next 30 rears for currently active and retired employees. These projected cash flows correspond to the pa)-as-you-go cost of the plan. The financial reporting result of l�tacic �, E Ms. Jo Verhelle November 11, 2008 Page 4 continuing on a pay-as-you-go only basis with no pre-funding is the creation of a Net OPEB Obligation(NOO) in the amount of the calculated ARC at 4.5%less the pay- as-you-go cost for each year that no additional pre-funding occurs. The NOO can grow over time with interest added to eventually become a substantial liability. Table 3 City of Grand Terrace Postretirement Medical Plan Cash Flow Projections Year Ending Active Retired Total 2009 $24 $60 $84 2010 $1.000 $2,000 $3,000 2011 $1,000 $4,000 $5,000 2012 $3,000 $5,000 $8,000 2013 $5,000 $7,000 $12,000 2014 $7;000 $8,000 $15,000 2015 $11,000 $10,000 $21,000 2016 $15,000 $12,000 $27,000 2017 $20,000 $13,000 $33,000 2018 $26,000 $15,000 $41,000 2019 $32,000 $16,000 $48,000 2020 $41,000 $18,000 $59,000 2021 $50.000 $20,000 $70,000 2022 $61,000 $22,000 $83,000 2023 $65,000 $24,000 $89,000 2024 $78,000 $26,000 $104,000 2025 $89,000 $28,000 $117,000 2026 $99,000 $29,000 $128,000 2027 $106,000 $30,000 $136.000 2028 $114.000 $30.000 $144,000 2029 $122,000 $29.000 $151,000 2030 $131.000 $28,000 $159,000 2031 $139.000 $27,000 $166,000 2032 $148.000 $26,000 $174,000 2033 $158,000 $25,000 $183,000 2034 $168,000 $24.000 $192.000 2035 $175,000 $23,000 $198,000 l)LICIf � 7 Ms. Jo Verhelle November 11, 2008 Page 5 Table 3 City of Grand Terrace Postretirement Medical Plan Cash Flow Projections Year EndkR Active Retired Total 2036 $179,000 $21,000 $200,000 2037 $185,000 $20,000 $205,000 2038 $192,000 $18,000 _$210,000 The 4.5%discount rate used in Tables lA and 2A corresponds to a pay-as-you-go funding method and is based on current interest earnings on general fund City assets. The higher discount rate used in Tables I and 2B of 7.75% (resulting in lower calculated plan liabilities) is allowable under GASB 45 if the City chooses to adopt a plan of fully prefunding the retiree medical benefit(the ARC)to a dedicated, irrevocable trust. It is possible to adopt a partial pre-funding plan that allows for use of an intermediate discount rate with resulting liabilities and an ARC between the two extremes presented in this report. Assumptions Appendix A provides the actuarial assumptions used for this valuation. They include items such as expected turnover rates,retirement rate,future trend rates, and mortality rates. Appendix B provides a glossary of commonly used terms for postretirement medical valuations. Please call me at(619) 725-1769 if you have any questions. Sincerely, J\ es A. Summers, F.S.A., M.A.A.A. Director and Consulting Actuary cc: Michael Schionning, F.S.A., M.A.A.A. buck 00t f APPENDIX A Valuation Assumptions Mortality: 1993 Ca1PERS Mortality Tables for males and females Discount Rates: 4.5%(pay-as-you-go) and 7.75%(full pre-funding) Withdrawal Rates: Representative values are shown below Male Turnover/Withdrawal from Service Years ofService Age 0 1 2 3 4 5+ 20 7.04% 14.99% 10.22% 9.13% 7.35% 6.02% 30 6.60% 12.55% 8.61% 7.14% 5.81% 3.87% 40 6.18% 10.49% 7.21% 4.86% 3.99% 0.63% 50 5.79% 8.77% 6.11% 4.40% 3.69% 0.43% 60 5.59% 7.69% 5.49% 3.74% 3.25% 0.20% Female Turnover/Withdrawal from Service Years o Service Age 0 1 2 3 4 5+ 20 8.51% 18.20% 14.66% 12.17% 11.27% 7.50% 30 8.07% 15.32% 11.23% 9.02% 7.20% 3.25% 40 7.66% 12.88% 8.56% 6.63% 4.54% 1.38% 50 7.25% 10.85% 6.59% 4.98% 2.98% 0.63% 60 7.09% 9.57% 5.38% 4.01% 2.12% 0.31% buck: 9 APPENDIX A Retirement Rates: Age Male Female 50 5.00% 7.0% 5$ 8.00% 10.0% 60 16.00% 13.0% 62 26.00% 23.0% 65 25.00% 27.0% 70 100.00% 100.0% New Entrants: None Assumed. Dependent Assumptions: Does not impact the City contribution. Participation Assumption: 70%of all active employees retiring under the plan are expected to elect postretirement medical coverage through Ca1PERS. 50%of current retirees will elect coverage through CaIPERS. Health Care Cost and Expense Trend: Year 1 10.0% 2 9.0% 3 8.0% 4 7.0% 5 6.0% 6+ 5.0% buck 1C APPENDIX A Demographic Information Fully Eli i�ible Not Yet Eligible Active Employees 7 25 Retired Employees 10 Ca1PERS "Unequal" Contributions Assumption Demonstration Fiscal Monthly Active City Contribution Year Employee to Postretirement Ending Premium Medical Premium 2009 $ 364.49 $ 1.00 2010 400.94 20.05 2011 437.02 43.70 2012 471.99 70.80 2013 505.02 101.00 - 2014 535.33 133.83 2015 562.09 168.63 2016 590.20 206.57 2017 619.71 247.88 2018 650.69 292.81 2019 683.23 341.61 2020 717.39 394.56 2021 753.26 451.95 2022 790.92 514.10 2023 830.47 581.33 2024 871.99 653.99 2025 915.59 732.47 2026 961.37 817.16 2027 1,009.44 908.49 2028 1,059.91 1,006.91 2029 1,112.90 1,112.90 buck 11 APPENDIX B Glossary of Terminology Accumulated Postretirement Benefit Obligation(APBO)- The actuarial present value of benefits attributed to employee service rendered'to a particular date. Active Plan Participant- Any active employee who has rendered service during the credited service period and is expected to receive benefits, including benefits to or = I for any beneficiaries and covered dependents, under the postretirement benefit plan. Actuarial Present Value-The value, as of a specified date, of a future benefit cost or a series of benefit costs, with each amount adjusted to reflect(a)the time value of money(through discounts for interest and (b) the probability of payment(for example,by means of decrements for events such as death,disability, withdrawal or retirement)between the specified date and the expected date of payment. Amortization- Systematic reduction of the principal portion(only) of an asset or liability. Annual Required Contribution—Consists of the normal cost and a portion of the total unfunded actuarial accrued liability(UAAL). The normal cost and UAAL are derived from the actuarial present value of benefits,the actuarial cost method and the plan assets. Attribution Period-The period of an employee's service to which.the expected postretirement benefit obligation for that employee is assigned. Discount Rate-The interest rate used in developing present values to reflect the time value of money. Expected Postretirement Benefit Obligation (EPBO)-The actuarial present value as of a particular date of the benefit expected to be paid to or for an employee, the employee's beneficiaries, and any covered dependents pursuant to the terms of the postretirement benefit plan. buck 1� APPENDIX B Health Care Cost Trend Rate -An assumption about the annual rate(s)of change in the cost of health care benefits currently provided by the postretirement benefit plan, due to factors other than changes in the composition of the plan population by age and dependency status, for each year from the measurement date until the end of the period in which benefits are expected to be paid. The-Health Care Cost Trend Rate implicitly considers estimates of health care inflation;changes in health care utilization or delivery patterns, technological advances, and changes in the health r- status of plan participants. Differing types of service, such as-hospital care and dental-care, may have different trends. Normal Cost(component of the Annual Required Contribution)-The portion of the Expected Postretirement Benefit Obligation attributed to employee service during a period. Substantive Plan-The terms of a postretirement benefit plan as understood by an employer that provides postretirement benefits and the employees who render services in exchange for those benefits. The substantive plan is the basis for the accounting for that exchange transaction. In some situations an employer's cost- sharing policy, as evidenced by past practice or by communication of intended changes to a plan's cost-sharing provisions,or a past practice of regular increases in certain monetary benefits may indicate that the substantive plan differs from the extant written plan. buck 13