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02/23/2010 Fl�E Ca G1Y RAND TEiZR CE February 23;2010 4:00 p.m. 22795 Barton Road Grand Terrace California 92313-5295 __. Civic.Center CITY 'OF GRAND TERRACE- 824-6621 Fax(909)183-7629 Fax.(909)783-2600, C CRAXITY COUNCIL p... - Maryetta Ferr6 - - -Mayor REGULAR MEETINGS . Lee Ann Garcia • Mayor Pro Tem -2� AND 4T Tuesday - 60 p:m. - Bea Cortes ' Jim Miller Walt Stanckiewitz Council Members Betsy M.Adams City Manager Council Chambers _ 'Grand.Terrace•Civic,Center 22795 Barton Road Grand-Terrace, CA 92313-5295 , r CITY OF GRAND TERRACE COUNCIL MEETING AGENDA CITY COUNCIL CHAMBERS February 23,2010 GRAND TERRACE CIVIC CENTER Workshop at 4 p.m. 22795 Barton Road Regular Meeting at 6 p.m. 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 4:00 PM CONVENE COMMUNITY REDEVELOPMENT AGENCY AND CITY COUNCIL MEETING 1. Mid Year Budget Workshop ADJOURN COMMUNITY REDEVELOPMENT AGENCY AND CITY COUNCIL MEETING 6:00 PM CONVENE COMMUNITY REDEVELOPMENT AGENCY 1. Approval of 02-09-2010 Minutes Approve 2. Traffic Engineering Services Agreements Approve/Appropriate 3. Annual Reports to the Legislative Body Accept 4. Mid-Year Budget Review for FY 2009-2010 Approve 5. Memorandum of Understanding("MOU")Between the City and Approve San Bernardino Association of Governments("SANBAG")for the Greenhouse Gas Inventory and Reduction Plan 6. Property Tax Consulting Services-Hdl Coren&Cone Approve 7. Resolution to Appropriate and Approve FY 2009-10 SERAF Adopt Payment and Protest Payment Requirement by State ADJOURN COMMUNITY REDEVELOPMENT AGENCY CONVENE CITY COUNCIL COUNCIL AGENDA 02-23-2010 PAGE 2 OF 3 AGENDA ITEMS STAFF COUNCIL RECOMMENDATIONS ACTION 1. Items to Delete 2. SPECIAL PRESENTATIONS A. Chamber of Commerce Business of the Month 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 Dated 02-23-2010 Approve B. Waive Full Reading of Ordinances on Agenda C. Approval of 02-09-2010 Minutes Approve D. Traffic Engineering Services Agreements Approve E. Emergency Operations Committee Minutes of 12-01-2009 and Accept 01-05-2010 F. Memorandum of Understanding("MOU")Between the City and Approve San Bernardino Association of Governments("SANBAG")for the Greenhouse Gas Inventory and Reduction Plan G. Sales, Use and Transactions Tax Audit Services - Hinderliter, Approve deLlamas and Associates H. Second Amendment to Purchase Order No. 2234, for Lynn Approve Merrill, Consulting to Municipal Governments, for Technical Support for the City's Solid Waste and Recycling Programs 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 1 contained in California Law,the City Council may not discuss or act i 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 A. An Ordinance of the City Council of the City of Grand Terrace, California, Amending Chapter 8.112 of the Grand Terrace Municipal Code Regulating the Sale and Discharge of Fireworks COUNCIL AGENDA 02-23-2010 PAGE 3 OF 3 AGENDA ITEMS STAFF COUNCIL RECOMMENDATIONS ACTION 7. UNFINISHED BUSINESS A. Second Reading of an Ordinance of the City Council of the City Approve of Grand Terrace, California Rescinding the Traffic Signal Improvement and Arterial Improvement Fee Schedules(4.104) and Replacing it with a New Fee Structure 8. NEW BUSINESS A. Resolution to Support a Grant Proposal to the State Department Adopt of Parks and Recreation for a New Park B. Mid-Year Budget Review for FY 2009-2010 Approve 9. CLOSED SESSION-None ADJOURN THE NEXT CRA/CITY COUNCIL MEETING WILL BE HELD ON TUESDAY, MARCH 9,2010,AT 6:00 P.M. AGENDA ITEM REQUESTS MUST BE SUBMITTED I..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 - FEBRUARY 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 February 9, 2010 at 6:00 p.m. PRESENT: Maryetta Ferr6, Chairman Lee Ann Garcia, Vice-Chairman Bea Cortes, Agency Member Jim Miller, Agency Member Walt Stanckiewitz, 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, Sheriffs Department John Salvate, San Bernardino County Fire Department ABSENT: None CONVENE COMMUNITY REDEVELOPMENT AGENCY AT 6:00 P.M. APPROVAL OF 01-26-2010 MINUTES CRA-2010-06 MOTION BY AGENCY MEMBER CORTES, SECOND BY VICE-CHAIRMAN GARCIA, CARRIED 5-0, to approve ' the January 26, 2010 Community Redevelopment Agency Minutes. Chairman Ferr6 adjourned the Community Redevelopment Agency Meeting at 6:35 p.m.,until the next CRA/City Council Meeting that is scheduled-to be held on Tuesday,February 23,2010 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 CRC!AGENDA ITEM NO. h iALI'FORVIA AGENDA REPORT MEETING DATE: February 23, 2010 Council Item ( X ) CRA Item (X) TITLE: Traffic Engineering Services Agreements PRESENTED BY: Joyce Powers, Community and Economic Development Director Richard Shields, Building & Safety/Public Works Director RECOMMENDATION: Agency: 1. Approve the attached Professional Consultant Services Agreement for up to $125,000 (through June 30, 2012) between the Agency and Albert A. Webb Associates, for project oriented Traffic Engineering Services. 2. Appropriate $25,000 to fund services for the remainder of fiscal year 2009-10. City Council: 1. Approve the attached Professional Consultant Services Agreement for up to $80,000 (through June 30, 2012) between the City and Transportation Engineering and Planning, Inc., for regional oriented Traffic Engineering Services (no new budget appropriation required). BACKGROUND: The City currently receives traffic engineering services from Craig Neustadter of Transportation Engineering and Planning, Inc. Because the contract for services is no longer valid, staff issued a Request for Proposals (RFP) to identify other firms qualified to provide these services. DISCUSSION: The RFP was issued on October 5, 2009, and sixteen responses were received from firms interested in providing traffic engineering services. After identifying the most experienced firms that met the RFP requirements, the review committee interviewed two engineering teams on January 7, 2010. The third firm invited to the interview was not able to attend. The interview team of the CED Director and Public Works Director recommend the firms of Albert A. Webb Associates (Webb) and Transportation Engineering and Planning, Inc. (TEP) for these services. CRA AGENDA ITEM NO. 1 Webb Agreement Webb's corporate headquarters is located in Riverside and the personnel are familiar with local traffic issues the City experiences, such as impacts of proposed projects. Staff anticipates using the Webb's services only as needed to review projects and environmental impacts, to identify any inadequate infrastructure for increased traffic, establishing a Redevelopment Agency budget for construction of road infrastructure improvements, and reviewing traffic circulation fees. The hourly cost for the principal traffic engineer is $140 throughout the term of the contract, which expires on June 30, 2012. The total contract amount will not exceed $125,000 through the entire term, which is based on $50,000 per year for 2.5 years. It is possible that actual work performed will not reach the contract cap. Staff is requesting an Agency budget appropriation of $25,000 to cover any costs incurred this fiscal year. Any funds not used will be carried over to FY 2010-11. TEP Agreement TEP staff, primarily Craig Neustadter, is extremely familiar with regional infrastructure projects, and has been a City liaison to SANBAG. The attached Agreement with TEP includes oversight of construction projects along the I-215. The contract expires June 30, 2012 and is capped at $80,000 for the entire term. This is based on the consultant's estimate of $16,000 for a six- month period. The hourly rate for Mr. Neustadter is $130 through December 31, 2010. From January 1, 2011 through June 30, 2012, the hourly rate will be $150. No new funds are requested at this time because available funds for city engineering services can be used for the remainder of this fiscal year. Staff recommends approval of the attached Consultant Service Agreements. FISCAL IMPACT: Sufficient funds for the Agency services are available in the CRA 80% undesignated fund balance. The Agency now has approximately$4 million available for new non-housing projects. In addition, the Agency has $2.7 million reserved for future debt service, pending approval of the Redevelopment Plan Amendment now in progress. Sufficient funds are available in the existing City engineering budget for the TEP, Inc. contract services for the 2009-10 fiscal year (cost $15,960). In subsequent years, funds will be appropriated through the annual budget process. Respectfully submitted, Joyce Powers Community and Economic Development Director 3V MI ATI A a;aA:;)A fUIJ 4RicarLC�ad Shields Building & Safety/ Public Works Director Manager Approval: Bets . Ada s City Manager and CRA Executive Director ATTACHMENTS: A. Professional Consultant Services Agreement between the Agency and Albert A. Webb Associates. B. Professional Consultant Services Agreement between the City and Transportation Engineering and Planning, Inc. 3 Attachment A Agreement between Agency and Albert A. Webb Associates d PROFESSIONAL CONSULTANT SERVICES AGREEMENT Albert A. Webb Associates Traffic Engineering Services THIS PROFESSIONAL CONSULTANT SERVICES AGREEMENT ("Agreement") is made and entered into this 23`d day of February, 2010, ("Effective Date") by and between the COMMUNITY REDEVELOPMENT AGENCY ("Agency"), a public entity, and Albert A. Webb Associates, ("Consultant"). 1. Scope of Services. Agency agrees to retain and does hereby retain Consultant and Consultant agrees to provide the services more particularly described in Exhibit "A", "Scope of Services, Project Schedule, and Fees", attached hereto and incorporated herein by reference, in conjunction with providing traffic engineering services to the Agency ("Services"). 2. Term. This Agreement shall be effective on the date first written above unless otherwise provided in Exhibit"A" and the Agreement shall remain in effect until June 30, 2012, unless otherwise terminated pursuant to the provisions herein. 3. Compensation/Payment. Consultant shall perform the Services under this Agreement for the total sum' not to exceed One Hundred, Twenty-Five Thousand dollars ($125,000.00) through the term in accordance with Exhibit"A". Said payments shall be made in accordance with Agency's usual accounting procedures upon receipt and approval of an itemized invoice setting forth the services performed. The invoices shall be delivered to Agency at the " address set forth in Section 4 hereof. 4. Notices. Any notices required to be.given hereunder shall be in writing and shall be personally served or given by mail. Any notice given by mail shall be deemed given when deposited in the United States Mail, certified and postage prepaid, addressed to the party to be served as follows: To A eg ncy: To Consultant: Community Redevelopment Agency Bruce Davis, Albert A. Webb Associates Attn: Joyce Powers 3788 McCray Street 22795 Barton Road Riverside, California 92506 Grand Terrace, California 92313 5. Prevailing Wage. If applicable, Consultant and all subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the California Labor Code and implemented the City Council of the City of Grand Terrace. The Director's determination is on file and open to inspection in the office of the City Clerk and is Page I of 12 5 referred to and made a part hereof, the wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein. a 6. Contract Administration. A designee of the Agency will be appointed to administer this Agreement on. behalf of the Agency and shall be referred to herein as Contract Administrator. 7. Standard of Performance. While performing the Services, Consultant shall exercise the reasonable professional care and skill customarily exercised by reputable members of Consultant's profession practicing in the Metropolitan Southern California Area, and shall use --- reasonable diligence and best judgment while exercising its professional skill and expertise. { 8. Personnel. Consultant shall furnish all personnel necessary to perform the Services and shall be responsible for their performance and compensation. Consultant recognizes that the qualifications and experience of the personnel to be used are vital to professional and timely completion of the Services. The key personnel listed in Exhibit "B" attached hereto and incorporated herein by this reference and assigned to perform portions of the:Services shall remain assigned through completion of the Services, unless otherwise mutually,agreed by the parties in writing, or caused by hardship or resignation in which case substitutes shall be subject to Agency approval. 9. Assignment and Subcontracting. Neither party shall transfer any right, interest, or obligation in or under this Agreement to any other entity without prior written ,consent of the other party. In any event, no assignment shall be made unless the assignee expressly assumes the obligations of assignor under this Agreement, in a writing satisfactory to the parties. Consultant shall not subcontract any portion of the work required by"this Agreement without prior written approval by the responsible Agency's Contract Administrator. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including without limitation, the insurance obligations set forth in Section 12. Consultant acknowledges that any transfer of rights may require Agency Executive Director and/or City Council approval. 10. Independent Contractor. In the performance of this Agreement, Consultant, and Consultant's employees, subcontractors and agents, shall act in an independent capacity as independent contractors, and -not as officers or employees of the City of Grand Terrace. Consultant acknowledges and agrees that Agency has no obligation to pay or withhold state or federal taxes or to provide workers' compensation or unemployment insurance to'Consultant, or to Consultant's employees, subcontractors and agents. Consultant, as an independent contractor; shall be responsible for any and all taxes that apply to Consultant as an employer. 11. Indemnification. 11.1 Indemnity. Except as to the sole negligence or willful misconduct of the Agency, Consultant shall defend, indemnify and hold the Agency, and its officers, employees and agents, harmless from any and all loss, damage, claim for damage, liability, expense or cost, including Page 2 of 12 attorneys' fees, which arises out of or is in any way connected with the performance of work under this Agreement by Consultant or any of the Consultant's employees, agents or subcontractors and from all claims by y Consultant's employees, subcontractors and agents for compensation for services rendered to Consultant in the performance of this Agreement, notwithstanding that the City and/or Agency may have benefitted from their services. This indemnification provision shall apply to any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of Consultant or of Consultant's employees, _subcontractors or agents. 11.2 Attorneys Fees. The:parties expressly agree that any payment, attorneys' fees, costs or expense that the.Agency incurs or makes to or on behalf of an injured employee under the Agency's self-administered workers' compensation is included as a loss, expense or cost for the purposes of this Section, and that this Section shall survive the expiration or early termination of the Agreement. 12. Insurance. 12.1 General Provisions. Prior to the Agency's-execution of this Agreement;Consultant shall provide satisfactory evidence of, and shall thereafter maintain during the term of this Agreement, such insurance policies and coverages_in the types, limits, forms and ratings required herein. The rating and required insurance policies and coverages may be modified in writing by the Agency's Risk Manager or Agency Attorney, or a designee, unless such modification is prohibited by law. 12.1.1 Limitations. These minimum amounts of coverage shall not constitute any limitation or cap on Consultant's indemnification obligations under Section 11 hereof. 12.1.2 Ratings. Any insurance policy or coverage provided by Consultant or subcontractors as required by this Agreement shall be deemed inadequate and a material breach of this Agreement, unless such policy or coverage is issued by insurance companies authorized to transact insurance business in the State of California with a policy holder's rating of B+ or higher and a Financial Class of VU or higher. 12.1.3 Cancellation. The policies shall not be canceled unless thirty (30) days prior written notification of intended cancellation has been given to Agency by certified or registered mail,postage prepaid. 12.1.4 Adequacy. The Agency, its officers, employees and agents make no representation that the types or limits of insurance specified to be canted by Consultant pursuant to this Agreement are adequate to protect Consultant. If Consultant believes that any required insurance coverage is inadequate, Consultant will obtain such,additional insurance coverage as Consultant deems adequate, at Consultant's sole expense. Page 3 of 12 7 12.2 Workers' Compensation Insurance: By executing this Agreement, Consultant certifies that Consultant is aware of and will comply with Section'3700 of the Labor Code of the State of California requiring every employer to be insured against liability for workers' compensation, or to undertake self-insurance before commencing any of the work. Consultant shall carry the insurance or provide for self-insurance required by California law to protect said Consultant from claims under the Workers' Compensation Act. Prior to Agency's execution of this Agreement, Consultant shall file with Agency either (1) a certificate of insurance showing that such insurance is in effect, or that Consultant is self-insured for such coverage, or (2);a certified statement that Consultant has no employees, and acknowledging that if Consultant does employ any person, the necessary certificate of insurance will immediately be filed with Agency. Any certificate filed with Agency shall provide that Agency will be given ten (10) days prior written notice before modification or cancellation thereof. 12.3 Commercial General Liability and Automobile Insurance. Prior to Agency' s execution of this Agreement, Consultant shall obtain, and shall thereafter maintain during the term of- this Agreement, commercial general liability insurance and automobile liability insurance as required to insure Consultant against damages for personal injury, including accidental death, as well as from claims for property damage, which may arise from or which may concern operations by anyone directly or indirectly employed by, connected with, or acting for or on behalf of Consultant. The Agency, and its officers, employees and agents, shall be named as additional insureds under the Consultant's insurance policies. 12.3.1 Consultant's commercial general liability insurance policy shall cover both bodily injury (including death) and property damage (including, but not limited to, premises operations liability, products-completed operations liability, independent Consultant's liability, personal injury liability, and contractual liability) in an amount not less than $1,000,000 per occurrence and a general aggregate limit in the amount of not less than$2,000,000. 12.3.2 Consultant's automobile liability policy shall cover both bodily injury and property damage in an amount not less than $500,000 per'occurrence and an aggregate limit of not less than $1,000,000. All of Consultant's automobile and/or commercial general liability insurance policies shall cover all vehicles used in connection with Consultant's performance of this Agreement, which vehicles shall include, but are not limited to, Consultant owned vehicles, Consultant•leased vehicles, Consultant's employee vehicles, non-Consultant owned vehicles and hired vehicles. ! - 12.3.3 Prior to Agency's execution of this Agreement, copies of insurance policies or original certificates and additional insured endorsements .evidencing the coverage required by this Agreement, for both commercial general and automobile liability insurance, shall be filed with the- Agency and shall include the Agency and its officers, employees and agents, as additional insureds. Said policies shall _be in the usual form of commercial general and automobile liability insurance policies, but shall include the following provisions: Page 4 of 12 I It is agreed that the Community Redevelopment Agency and its officers, employees and agents, are added as additional insureds under this policy, solely for work done by and on behalf of the named insured for the Community Redevelopment Agency. 12.4 Errors and Omissions Insurance. Prior to Agency's execution of this Agreement, Consultant shall obtain, and shall thereafter maintain during the term of this,Agreement, errors and omissions professional liability insurance in the minimum amount of$1,000,000 to protect the Agency from claims resulting from the Consultant's activities. 12.5 Subcontractors' Insurance. Consultant shall require all of its subcontractors to carry insurance, in an amount sufficient to cover the risk of injury, damage or loss, that may be caused by the subcontractors' scope of work and activities provided in .furtherance of this Agreement, including, but without limitation, the following coverages: Workers Compensation, Commercial General Liability, Errors and Omissions, and Automobile liability. Upon Agency's request, Consultant shall provide the Agency with satisfactory evidence that Subcontractors have obtained insurance policies and coverages required by this section. 13. Business Tax. Consultant understands that the Services performed under this Agreement constitutes doing business in the City of Grand Terrace, and Consultant agrees that Consultant will register for and pay a business,tax pursuant to Chapter 5.04 of the Grand Terrace Municipal Code and keep such.tax certificate current during the term of this Agreement. 14. Time of Essence. Time is of the essence for each and every provision of this Agreement. 15. Agency's Right to Employ Other Consultants. Agency reserves the right to employ other Consultants in connection with the Project. 16. Accounting Records. Consultant shall maintain complete and accurate records with respect to costs incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of Agency during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents-created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 17. Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other materials either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant, except as otherwise directed by Agency's Contract Administrator. Nothing furnished to Consultant which is otherwise known to the Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use Agency's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, a television or radio production, website, or other similar medium without the prior written consent of the Agency. 18. Ownership of Documents. All reports, maps, drawings and other contract deliverables prepared under this Agreement by Consultant shall be and remain the property of Agency upon Agency's ' compensation to Consultant for its services as herein provided. Consultant shall not release to others information furnished by Agency without prior express written approval of Agency. 19. Conflict of Interest. Consultant, for itself and on behalf of the individuals listed in Exhibit "B", represents and warrants that by the execution of this Agreement, they have no interest, present or contemplated, in the Project affected,by the above-described Services. Consultant'further warrants that neither Consultant, nor the individuals listed in Exhibit`B" have any real property, business interests or income interests that will be affected by this project or, alternatively, that Consultant will file with the Agency an affidavit disclosing any such interest. ! 20. Solicitation. Consultant warrants that Consultant has not employed or retained any person or Agency to solicit or secure this Agreement, nor has it entered into any agreement or understanding for a commission, percentage, brokerage, or contingent fee to be paid to secure this Agreement. For breach of this warranty, Agency shall have the right to terminate this Agreement without liability and pay Consultant only for the value of work Consultant has actually performed, or, in its sole discretion, to deduct from the Agreement price or otherwise recover from Consultant the full amount of such commission, percentage, brokerage or commission fee. The remedies specified in this section shall be in addition to and not in lieu of those remedies otherwise specified in this Agreement. 21. General Compliance with Laws. Consultant shall keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Consultant, or in any way affect the performance of services by Consultant pursuant to this Agreement. Consultant shall'at all times observe and comply with all such laws, ordinances and regulations, and shall be solely responsible for any failure'to comply with all applicable laws, ordinances and regulations. 22. Amendments. This Agreement may be modified or amended only by a written Agreement and/or change order executed by the Consultant and Agency. 23. Termination. Agency, by notifying Consultant in writing, shall have the right to terminate any or all of Consultant's services and work covered by this Agreement at any time. In the event of such termination, Consultant may submit Consultant's final written statement of the amount of Consultant's services as of the date of such termination based upon the ratio that the work completed bears to the total work required to make the report complete, subject to the Agency's rights-under Sections 15 and 24 hereof. In ascertaining the work actually rendered through the termination date; Agency shall consider completed work, work in progress and complete and incomplete reports and other documents only after delivered to Agency. Page 6 of 12 1n 23.1 Other than as .stated below, Agency shall give Consultant thirty (30) days prior written notice prior to termination. 23.2 Agency may terminate this Agreement upon fifteen (15) days written notice to Consultant, in the event:" 23.2.1 Consultant substantially fails to perform or materially breaches the Agreement; or 23.2.2 Agency decides to abandon or postpone the Project. 24. Offsets. Consultant acknowledges and•agrees that with respect to any business tax or penalties thereon, utility charges, invoiced fee or other debt which.Consultant owes or may owe to the Agency, Agency reserves the right to withhold and offset said amounts from payments or refunds or reimbursements owed by Agency to•Consultant. Notice of such withholding and offset shall promptly be given to Consultant.by Agency in,writing. In the event of a dispute as to the amount owed or whether-such amount is owed to the Agency, Agency will hold such disputed amount until either the appropriate appeal process has been completed or until the dispute has been resolved. 25. -Successors and Assigns. This Agreement shall be binding upon Agency and its successors and assigns, and upon Consultant and its permitted successors and assigns, and shall not be assigned by Consultant, either in whole or in part, except as otherwise provided in paragraph 9 of this Agreement. 26. Venue and Attorneys' Fees. Any-action,at law or in equity brought by.either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of San Bernardino, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. In the event either party hereto shall bring suit to enforce any term of this Agreement or to recover any damages for and on account of the breach of any term or condition of this Agreement, it is mutually agreed that the prevailing party in such action shall recover all costs thereof, including reasonable attorneys' fees, to be set. by the court in such action. 27. Nondiscrimination.During Consultant's performance of this Agreement, Consultant shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability,-medical condition, including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sex, or sexual orientation, in the selection and retention of,employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Further, Consultant agrees to conform to the requirements of the Americans with Disabilities Act in the performance of this Agreement. Page 7 of 12 11 28. Severability. Each provision, term, condition, covenant and/or restriction, in whole and in part, of this Agreement shall be considered severable. In the event any provision, terrn, condition, covenant and/or restriction, in whole and/or in part, .of this Agreement is declared invalid, unconstitutional, or void for any reason, such provision or part thereof shall be severed from this Agreement .and shall not affect any other provision, term, condition, covenant and/or restriction of this Agreement, and the remainder of the Agreement shall continue in full force and effect. F 29. Authority: The individuals executing this Agreement and the instruments referenced herein on behalf of Consultant each represent and warrant that they have the legal power, right and actual authority to bind Consultant to the terms and conditions hereof and thereof. 30. Entire Agreement: This Agreement constitutes the final, complete,,and exclusive statement of the terms of the agreement between the parties pertaining.to the subject matter of this Agreement, and supersedes all prior and contemporaneous understandings ouagreements of the parties. Neither party has been induced to enter into,this Agreement by, and neither party is relying on, any representation or warranty outside.those expressly set forth in this Agreement. i 31. Interpretation. Agency and Consultant acknowledge and agree that this Agreement is the product of mutual arms-length negotiations and accordingly, the rule of construction, which.provides that the ambiguities in a document shall be construed against the drafter of that document, shall have no application to the interpretation and enforcement of this Agreement. 31.1 Titles and captions are for convenience of reference only and do not define, ,, _ describe or limit the scope or the intent of the Agreement or any of its terms.' Reference to section numbers are to sections in the Agreement unless expressly stated otherwise. 31.2 This Agreement shall be governed by and construed in accordance with the laws of the State of California in-effect at the time of the execution of this Agreement. 31.3 In the event of a conflict between the body of this"Agreement and Exhibit hereto, the terms contained in Exhibit"A" shall be'controlling. 32. Exhibits. The following exhibit's attached hereto are incorporated herein to this Agreement by this reference: Exhibit"A"--Scope of Services, Project Schedule, and Fees Exhibit"B" -Personnel IN WITNESS WHEREOF Agency and Consultant have caused this Agreement to be duly executed the day and year first above written. " I Page 8 of 12 1: COMMUNITY REDEVELOPMENT AGENCY, Company A Public Entity Albert A. ebb Associates By: By: Betsy M. Adams B ce UDa Agency Executive Director Vice President Attest: By: -<� Agency Secretary/City Clerk Scott Webb Chief Financial Officer APPROVED AS TO FORM: By: Agency Attorney Page 9 of 12 13 I EXHIBIT"A" SCOPE OF WORK i The staff supplied by the firm will be considered as City staff and-will be expected to conduct all duties normally assigned to the Traffic Engineer or Traffic Engineering Section within a City. The includes routine traffic engineering duties such as traffic counts, signal timing, striping plans and the review of submitted signal and/or striping plans as well as more complex-items such as review of Traffic Impact Analysis Studies for major projects,establishing program goals and budgets for long range planning of traffic impacts,checking and insuring compliance with regional Congestion Management Programs and coordinating with regional and adjacent local agencies. The following services are specifically requested: a • Complete traffic engineering studies, designs'and surveys; plan and coordinate traffic operational programs within the City, • Work closely with City staff, CalTrans, San Bernardino County, SANBAG, Riverside County,adjacent Cities, and local law enforcement agencies in analyzing traffic related issues and mitigation, as requested. • Meet with project applicants and developers as determined by the City Engineer. • In the capacity of City Traffic Engineer, advise the City regarding all traffic related matters, as requested. • When requested,prepare and present engineering reports related to pedestrian traffic patterns, traffic installations and traffic control devices such as stop signs, signals, crosswalks, speed zones, traffic control and similar matters. • Attend and present at Planning Commission and City Council meetings as needed. • Attend SANBAG and CalTrans meetings on behalf of the City only as 'requested. • Assist City staff with preparation of annual traffic reports including such items as Development Monitoring Reports, Measure I reporting,Traffic Circulation Element, Congestion Management Plan. • Review and make recommendations on all traffic reports and provide input relating to traffic issues on planning and development applications. . • Determine the need for and type of traffic controls; recommend traffic ordinances ' and resolutions; recommend traffic impact mitigation. • Traffic signal design. • Preparation of signal timing sheets. • Coordination of timing. • Signal operations troubleshooting. • Traffic signing and striping. • Traffic control plan preparation. i I Page 10 of 12 ; 1 Fees CLASSIFICATIONS Engineers/Project Manager/Planners/Scientist'RATES Assessment/Special Tax Specialists/Landscape Architects/Designer-$/HOUR PrincipalII.........................................................................................:.............................................. 164.00 Principal I(Dilesh Sheth)......................................................................I........................................... 140.00 SeniorI............................................................................................................................................... 139.00 AssociateIII..................................................................................................:..................................... 131.00 AssociateH................................................................. .................118.00 AssociateI.......................................................................................................................................... 112.00 AssistantV..........................................................................................................................................96.00 AssistantIV.........................................................................................................................................92.00 AssistantIII..........................................................................................................................................85.00 AssistantII..........................................................................................................................................72.00 AssistantI..........................................................................................................................................60.00 Survey Services 3-Person Survey Party.......................................................................................................................230.00 2-Person Survey Party......................................................................................................................201.00 1-Person Survey Party...................................................................................................................... 123.00 Directorof Survey............................................................................................................................. 142.00 Manager of Field Operations............................................................................................................ 114.00 SurveyTechnician II...........................................................................................................................99.00 SurveyTechnician I............................................................................................................................. 82.00 Inspection Services Construction Manager....................................................................................................................... 142.00 InspectorH.........................................................................................................................................92.00 InspectorI...........................................................................................................................................87.00 Administrative Services ProjectCoordinator.............................................................................................................................82.00 AdministrativeAssistant III..................................................................................................................68.00 Administrative Assistant H..................................................................................................................60.00 AdministrativeAssistant I..................................................................................................................44.00 Other Direct Expenses IncidentalCharges................................................................................................................................Cost Postageand Telephone.........................................................................................................................Cost In-house Prints,Copies and Delivery...................................................................................................Cost Traveland Subsistence.........................................................................................................................Cost Expert Witness Testimony and Preparation.................................................................................375.00/Hour Consultant Time Relative to Legal Action................................................................................... 300.00/Hour GISLicense Fee.............................................................................................................................37.00/Hour Subcontracted Services..................................................................................................................Cost+ 15% Survey/Inspector Vehicle..................................................................................................................0.77/Mile Mileage.............................................................................................................................................0.66/Mile Page 11 of 12 15 EXHIBIT`B" PERSONNEL Albert A. Webb Associates Bruce Davis, PE—Principal-in-Charge Dilesh Sheth, PE, TE—City Contact, Traffic Engineer David Alcala,TSOS—Senior Designer Myung Choo,TE—Associate Engineer Counts Unlimited—Traffic Counts Page 12 of 12 1 PROFESSIONAL CONSULTANT SERVICES AGREEMENT Transportation Engineering and Planning, Inc. Traffic Engineering Services THIS PROFESSIONAL CONSULTANT SERVICES AGREEMENT ("Agreement") is made and entered into this 23`d day of February, 2010, ("Effective Date") by and between the CITY OF GRAND TERRACE ("City"), a public entity, and Transportation Engineering and Planning Inc. (TEP), ("Consultant"). 1. Scope of Services. City agrees to retain and does hereby retain Consultant and Consultant agrees to provide the services more particularly described in Exhibit "A", "Scope of Services, Project Schedule, and Fees", attached hereto and incorporated herein by reference, in conjunction with Proposal to Provide On-Call Traffic Engineering Services ("Project"). 2. Term. This Agreement shall be effective on the date first written above unless otherwise provided in Exhibit "A" and the Agreement shall remain in effect until June 30, 2012, unless otherwise terminated pursuant to the provisions herein. 3. Compensation/Payment. Consultant shall perform the services under the Agreement for the total sum not to exceed Eighty Thousand dollars ($80,000.00) through the term in accordance with Exhibit "A". Said payments shall be made in accordance with Agency's unusual accounting procedures upon receipt and approval of an itemized invoice setting forth the .- services performed. The invoices shall be delivered to the City at the address set forth in Section 4 hereof. 4. Notices. Any notices required to be given hereunder shall be in writing and shall be personally served or given by mail. Any notice given by mail shall be deemed given when deposited in the United States Mail, certified and postage prepaid, addressed to the party to be served as follows: To City: To Consultant: The City of Grand Terrace Craig S. Neustaedter, P.E., AICP Attn: Richard Shields Transportation Engineering and Planning, 22795 Barton Road Inc. Grand Terrace, California 92313 7 Corporate Park, Suite 120 Irvine, CA 92606 5. Prevailing Wage. If applicable, Consultant and all subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the California Labor Code and implemented the City Council of the City of Grand Terrace. The Director's determination is on file and open to inspection in the office of the City Clerk and is Page 1 of 11 18 referred to and made a part hereof; the wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein. 6. . Contract,Administration. A designee of the City will be appointed to administer this Agreement on behalf of the City and shall be referred to herein as Contract Administrator. 7. Standard of Performance. While performing the Services, Consultant shall exercise the reasonable professional care and skill customarily exercised by reputable members of Consultant's profession practicing in the Metropolitan Southern California Area, and shall use reasonable diligence and best judgment while exercising itsi professional skill and expertise. 8. Personnel. Consultant shall furnish all personnel necessary to perform the Services and shall be responsible for their performance and compensation. Consultant recognizes that the qualifications and experience of the personnel to be used are vital to professional and timely completion of the Services. The key personnel listed in Exhibit "B" attached, hereto and incorporated herein by this reference and assigned to perform portions of the Services shall remain assigned through completion of the Services, unless otherwise mutually agreed by the parties in writing, or caused by hardship or resignation in which case substitutes shall be subject to City approval. 9.. Assignment and Subcontracting. Neither parry shall transfer any right, interest, or obligation in or under this Agreement to any other entity without prior written consent of the other party. In any event, no assignment shall be made unless the assignee expressly assumes the obligations of assignor under this Agreement, in a writing satisfactory to the parties. Consultant shall not subcontract any portion of the work required by this Agreement without prior written approval by the responsible City's Contract Administrator. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including without limitation; the insurance obligations set forth in Section 12. Consultant acknowledges that any transfer of rights may require City Manager and/or City Council approval. 10. Independent Contractor. In the performance of this .Agreement, Consultant, and Consultant's employees, -subcontractors and agents, shall act in an independent capacity as independent contractors,, and not as officers or employees of the City of Grand Terrace. Consultant acknowledges and agrees that City has no obligation to pay or withhold' state or federal taxes or to provide workers' compensation or unemployment insurance to Consultant, or to Consultant's employees, subcontractors and agents. Consultant, as an independent contractor, shall be responsible for any and all taxes that apply to Consultant as an employer. 11. Indemnification. 11.1 Indemnity. Except as to the sole negligence or willful misconduct- of the City, Consultant shall defend, indemnify and hold-the City, and its officers, employees and agents, harmless from any and all loss, damage, claim for damage, liability, expense or cost, including attorneys' fees, which arises out of or is in any way connected with the performance of work Page 2 of 11 19 under this Agreement by Consultant or any of the Consultant's employees, agents or subcontractors and from all-claims by Consultant's employees, subcontractors and agents for compensation for services rendered to Consultant in the performance of this Agreement, notwithstanding that the City `and/or City may have benefitted from their services. This indemnification-provision shall apply to any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of Consultant or of Consultant's employees, subcontractors or agents. 11.2 Attorney's Fees. The parties expressly agree that any payment, attorneys' fees, costs or expense that the City incurs or makes to or on behalf of an injured employee under the City's self-administered workers' compensation is included as a loss, expense or cost for the purposes of this Section, and that this Section shall survive the expiration or early termination of the Agreement.- 12. Insurance. 12.1 General Provisions. Prior to -the City's execution of this Agreement, Consultant shall provide satisfactory evidence of, and shall thereafter maintain during the term of this Agreement, such insurance policies and coverages in the types, limits, forms and ratings required herein. The rating and required insurance policies and coverages may be modified in writing by the City's Risk Manager or City Attorney, or a designee, unless such modification.is prohibited by law. 12.1.1 Limitations. These minimum amounts of coverage shall not constitute any limitation or cap on Consultant's indemnification obligations under Section 11 hereof. 12.1.2 Ratings. Any insurance policy or coverage provided by Consultant or subcontractors as required by this Agreement shall be deemed inadequate and a material breach of this Agreement, unless such policy or coverage is issued by insurance companies authorized to transact insurance business in the State of California with a policy holder's rating of B+ or higher and a Financial Class of VU or higher. - i - 12.1.3 Cancellation. The policies shall not be canceled unless thirty (30) days prior written notification of intended cancellation has been given to City by certified or registered mail, postage prepaid. 12.1.4 Adequacy. The City, its officers, employees and agents make no representation that the types or limits of insurance specified to be carried by Consultant pursuant to this Agreement are adequate to protect Consultant. If Consultant believes that any required insurance coverage is inadequate, Consultant will obtain such additional insurance coverage as Consultant deems adequate, at Consultant's sole expense. 12.2 Workers' Compensation Insurance: By executing this Agreement, Consultant certifies that Consultant is aware of and will comply with Section 3700 of the Labor Code of the Page 1 of 11 i - 7 f� State of California requiring every employer to be insured against liability for workers' compensation, or to undertake self-insurance before commencing any of the work. Consultant shall carry the insurance or provide for self-insurance required by California law to protect said Consultant from claims under the Workers' Compensation Act. Prior to City's execution of this Agreement, Consultant shall file with City either(1) a certificate of-insurance showing that such insurance is in effect, or that Consultant is self-insured for,such coverage, or (2) a certified statement that Consultant has no employees, and acknowledging that if Consultant does employ any person, the necessary certificate of insurance will immediately be filed with City. Any certificate filed with City shall provide that City will be given ten (10) days prior written notice before modification or cancellation thereof. 12.3 Commercial General Liability and Automobile Insurance. Prior to City's execution of this Agreement, Consultant shall-obtain, and shall thereafter maintain during the term of this Agreement, commercial general 'liability insurance and automobile liability insurance, as required to insure Consultant'against- damages for personal injury, including accidental,death, as well as from claims for property damage, which may arise from or which may concern operations by anyone directly or indirectly employed by, connected with, or acting for or on behalf of Consultant. The City, and'its officers, employees.and agents, shall be named as additional insureds under the Consultant's insurance policies. 12.3.1 Consultant's commercial general liability insurance policy shall cover both bodily injury (including death) and property damage (including, but not limited.to, premises operations liability, products-completed operations liability, independent Consultant's liability, personal injury liability, and contractual liability) in an'amount not less than $1'000,000 per occurrence and a general aggregate limit in the amount of not less than$2,000,000. 12.3.2 Consultant's automobile -liability policy shall cover both bodily injury and property damage in an amount not less than $500,000 per occurrence'and an aggregate limit of not less- than $1,000,000. All of Consultant's automobile and/or commercial general `liability insurance policies shall cover all vehicles used in connection with Consultant's,performance of this Agreement, which vehicles shall include, but are not limited to, Consultant-owned vehicles, Consultant leased vehicles, Consultant's employee vehicles, non-Consultant owned vehicles and hired vehicles. 12.3.3 Prior to City's execution of this Agreement, copies of insurance policies or original certificates and additional insured endorsements evidencing the coverage required by this Agreement, for both commercial general and 'automobile liability insurance, shall be filed with the City and shall include the .City and its officers, employees and agents, as additional insureds. Said policies shall be in the usual form of commercial general and automobile liability insurance policies, but shall include the following provisions: It is agreed that the City of Grand Terrace and its officers, employees;and agents, are added as additional insureds under this policy, solely for work done by and on behalf of the named insured for the City of Grand Terrace. Page 4 of 11. �1 12.4 Errors and Omissions Insurance. Prior to City's execution of this Agreement; Consultant shall obtain, and shall thereafter maintain during the term of this Agreement, errors and omissions professional liability insurance in the minimum amount of$1,000,000 to protect the City from claims resulting from the Consultant's activities. 12.5 Subcontractors' Insurance. Consultant shall require all of its subcontractors to carry insurance, in an amount sufficient to cover the risk of injury, damage or loss, that may be caused by the subcontractors' scope of work and activities provided in furtherance of this Agreement, including, but without limitation, the following coverages: Workers Compensation, Commercial General Liability, Errors and Omissions, and Automobile liability. Upon City's request, Consultant shall provide the City with satisfactory evidence that Subcontractors have obtained insurance policies and coverages required by this section. 13. Business Tarr. Consultant understands that the Services performed under this Agreement constitutes doing business in the City of Grand Terrace, and Consultant agrees that Consultant will register for and pay a business tax pursuant to Chapter 5.04 of the Grand Terrace Municipal Code and keep such tax certificate current during the term of this Agreement. 14. Time of Essence. Time is of the essence for each and every provision of this Agreement. 15. City's Right to Employ Other Consultants., City reserves the right to employ other Consultants in connection with the Project. 16. Accounting Records. Consultant shall maintain complete and accurate records with respect to costs incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 17. Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other materials either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant, except as otherwise directed by City's Contract Administrator. Nothing furnished to Consultant which is otherwise known to the Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production, website, or other similar medium without the prior written consent of the City. 5 of 11 18. Ownership of Documents. All reports, maps, drawings and other 'contract deliverables prepared under this Agreement by Consultant shall be and remain the property of City upon City's compensation to Consultant for its services as herein provided. Consultant shall not release to others information furnished by City without prior express written approval of City. 19. Conflict of Interest. Consultant, for itself and on behalf of the individuals listed in Exhibit "A", represents and warrants that by the execution of this Agreement, they have no interest, present or contemplated, in -the Project affected by the above-described Services. Consultant further warrants that neither Consultant, nor the individuals listed in Exhibit"A"have any real property, business interests or income interests that will be affected by this project or, alternatively, that Consultant will file with the City an affidavit disclosing any such interest. 20. Solicitation. Consultant warrants that Consultant has not employed or retained any person or City to solicit or secure this Agreement, nor has it entered into any agreement or understanding for a commission, percentage, brokerage, or contingent fee to be paid to secure this Agreement.- For breach of this warranty, 'City shall have the right to terminate this Agreement without liability and .pay Consultant only for the value of work Consultant has actually performed, or, in its sole discretion, to deduct from the Agreement.price or otherwise recover from Consultant the full amount of such commission, percentage, brokerage or commission fee. The remedies specified in this section shall be in addition to and not in lieu of those remedies otherwise specified in this Agreement. 21. General Compliance with Laws.- Consultant shall keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed f' by Consultant, or in any way affect,the performance of services by Consultant pursuant to this Agreement. Consultant shall at all times observe and comply with all such laws, ordinances and regulations, and shall be solely responsible for any failure.to comply with all applicable laws, ordinances and regulations. 22. Amendments. This Agreement may be modified or amended only by a written Agreement and/or change order executed by the Consultant and City. 23. Termination. City, by notifying Consultant in writing, shall have the right to terminate any or all of Consultant's services and work covered by this Agreement at any time. In the event of such termination, Consultant may submit Consultant's final written statement of the amount of Consultant's services as of the date of such termination based upon the ratio that the work completed bears to the total work required to make the report complete, subject to the City's rights under Sections 15 and 24 hereof. , In ascertaining the work actually rendered through the termination date, City shall consider completed work, work in progress and complete and incomplete reports and other documents only after delivered to City. 23.1 Other than as stated below, City shall give Consultant thirty (30) days prior written notice prior to termination. Page 6 of 11 23.2 City may terminate ,this Agreement upon fifteen (15) days written notice to Consultant, in the event: 23.2.1 Consultant substantially fails to perform or materially breaches the Agreement; or; i 23.2.2 City decides to abandon or postpone the Project. 24. Offsets. Consultant acknowledges and agrees that with respect to any business tax or penalties thereon, utility charges, invoiced fee or other debt which Consultant owes or may owe to the City. City reserves the right to withhold and offset said amounts from payments or refunds or reimbursements owed by City to Consultant. Notice of such withholding and offset shall ' promptly be given to Consultant by City in writing. In the event of a dispute as to the amount owed or whether such amount is owed to the City, City will hold such disputed amount until either the appropriate appeal process.has been completed or until the dispute has been resolved. 25. Successors and Assigns. This Agreement shall be binding upon City and its successors and assigns, and upon Consultant and its permitted successors and assigns, and shall not be assigned by Consultant, either in whole or in, part, except as otherwise provided in paragraph 9 of this Agreement. 26. Venue and Attorneys' Fees. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing,a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of San Bernardino, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. In the event either party hereto shall bring suit to enforce any term of this Agreement or to recover any damages for and on account of the breach of any term or condition of this Agreement, it is-mutually agreed that the prevailing party in such action shall recover all costs thereof, including reasonable attorneys' fees, to be set by the court in such action. 27. Nondiscrimination.During Consultant's performance of this Agreement,Consultant shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition, including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sex, or sexual orientation, in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Further, Consultant agrees to conform to the requirements of the Americans with Disabilities Act in,the performance of this Agreement. 28. Severability. Each provision, term, condition, covenant and/or restriction, in whole and in part, of this Agreement shall be considered severable. In the event any provision, term, condition, covenant and/or restriction, in whole and/or in part, of this Agreement is declared invalid, unconstitutional, or void for any reason, such provision or part thereof shall be severed Page 7 of 11 from this Agreement and shall not affect any other provision, term, condition, covenant and/or restriction of this Agreement, and the remainder of the Agreement shall continue in full force and effect. 29. Authority: The individuals executing this Agreement and the instruments referenced herein on behalf of Consultant each represent and warrant that they have the legal power, right and actual authority to bind Consultant to the terms and conditions hereof and thereof. 30. Entire Agreement: This Agreement constitutes the final, complete, and exclusive statement of the terms of the agreement between the parties pertaining to the subject matter of this Agreement, and supersedes all prior and contemporaneous understandings or agreements of the parties. Neither party has been induced to enter into this Agreement by, and neither party is relying on, any representation or warranty outside those expressly set forth in this Agreement. 31. Interpretation. City and Consultant acknowledge and agree that this Agreement is the product of mutual arms-length negotiations and accordingly, the rule of construction, which provides that the ambiguities in a document shall be construed against the drafter of that document, shall have no application to the interpretation and enforcement of this Agreement. 31.1 Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of the Agreement or any of its terms. Reference to section numbers are to sections in the Agreement unless expressly stated otherwise. 31.2 This Agreement shall be governed by and construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. 31.3 In the event of a conflict between the body of this Agreement and Exhibit "A" hereto, the terms contained in Exhibit"A" shall be controlling. 32. Exhibit. The following exhibit attached hereto is incorporated herein to this Agreement by this reference: Page 8 of 11 25 ' I I I ' I 1 IN WITNESS WHEREOF City and Consultant have caused this Agreement to be duly executed ; the day and year first above written. I 4 THE CITY OF GRAND TERRACE, j A Public Entity By: I City Manages Attest:, City Clerk APPROVED AS TO FORM: I By: ; ! City Attorney ' i I i r I i i i I ' f , j I Page 9 of 11 I I r Company By: 4w. Cry � gnnte4Nale] es• �► [Title] By: [Printed Name] [Title] Page 10 of 11 27 EXHIBIT "A" SCOPE OF SERVICES, PROJECT SCHEDULE,AND FEES Page 11 of 11 2F The following Contract Scope of Work and budget is proposed for TEP services to be provided during the forthcoming six months from January1, 2010 through June 30, 2010: Support to council members 36 hours $5,040.00 and staff on SANBAG issues Barton Interchange support 24 hours $3,360.00 Miscellaneous requests/HPMS 30 hours $4,200.00 report preparation Development issues 24 hours $3,360.00 Total 114 hours $15 960.00 The Scope of Work throughout the Contract Term will remain the same and services billed in accordance with the attached Hourly Rate Schedule. 29 i T9P sm P.O. Box 18355 phone: 949 552 4357 Irvine CA 92623 fax:909494 4408 e-mail: tepirvine@sbcglobal.net mobile: 909 263 0383 i Hourly Rate Schedule Effective Effective January 1, 2010* January 1, 2011 Principal $ 130.00 $ 150.00 Master.Designer 140.00 160.00 . TEP Consultant 120.00 140.00 Designer 95.00 110.00 Engineering Assistant 68.00 80.00 Technician 55.00 65.00 Clerical 35.00 40:00 . 1 * Discounted rate. Depositions, expert witness testimony (including preparation and wait time) will be billed at double the above rates. Four hour minimum. { Mileage will be billed at $ .60 per mile. Reimbursable expenses will be billed at cost plu''s fifteen (15) percent. ' �y . I i, i - I i I I i Transportation Engineering and Planning,.Inc. i Y EXHIBIT "B" PERSONNEL Craig Neustaedter, Principal Engineer Ed Studor, Professional Transportation Planner Moses Katz, Principal Engineer Kamal McHantaf, Principal Engineer 31 ,gj w N AGENDA REPORT , tALIFOR9IA MEETING DATE: February 23, 2010 Council Item( CRA Item' (X) TITLE: ANNUAL REPORT TO THE LEGISLATIVE BODY PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION: Accept and file the 2008-09 Annual Reports for the Community Redevelopment Agency BACKGROUND: EXECUTIVE SUMMARY: 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 200&09 fiscal year, the Housing. and Community Development ("HCD") Report, and the State Controller's Report have been completed and are submitted for approval to the City Council. DISCUSSION: The annual report for fiscal year 2008-09 consists of financial and project information as summarized below: Housing and Displacement Activities Section 33080.l(c) requires a description of certain affordable housing and redevelopment activities in the 2008-09 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 2008-09 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 will also feature a senior citizens center. Of the 120 units, 108 will be restricted for very low and low income seniors; the CRA AGENDA ITEM NO. � 1 • I 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. During the fiscal year, the Agency expended $2,555,593 on construction costs for the project. 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: Four dwelling units designated for very' low, low, and moderate income households directly benefited from LMIHF expenditures for maintenance and repairs. The four units are located at 12569 Michigan, 11695 Canal, 22317 Barton Road, and 22293 Barton Road. . 1 Alleviation of Blight Section 33080.1(c) also requires a description of the Agency's progress in alleviating blight in the 2008-09 -fiscal year, including specific actions and expenditures. The following projects o'r programs have been identified: Senior Center and Senior Housing— This project was reviewed.for entitlements, the EIR completed, constructions•.plans completed, and construction is now,underway., The project includes a new 7,000 square foot senior center'(up from the existing 4;500 square feet) and 120 r one- and.two-bedroom units for seniors. One hundred eight (108) units are restricted for ! household incomes at or below 60% of the area median income adjusted for family size. During the fiscal year, the Agency expended $3,407,337 on construction costs. i Affordable Housing Programs — At an average of$30,000 per unit, the Agency's Home Improvement Program provides eligible low-: and moderate-income households loans to fund minor rehabilitation expenses. One homeowner has been assisted during this fiscal year, and additional projects are scheduled to be rehabilitated. The Agency is now reviewing foreclosed homes for future rehabilitation projects. Property acquisition for project site assembly—Property acquisition for both the freeway- oriented 120 acre project (former Outdoor Adventure site) and the Town Square commercial project has been underway in partnership with private development partners. A 123 acre site adjacent to the northbound I-2.15 between Barton and Pico, the Outdoor Adventure Center is!a mixed-use commercial retail center which provides retail sales opportunities and jobs. In addition, it improves circulation from the I-215. The Agency anticipates that its investments in public infrastructure and land acquisition for this project will stimulate economic development in the Project Area. i i O 0 Ni311, 'A(114,� I ' 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. Completion of this project would assemble a large number-of un-utilized or under utilized parcels into a coordinated retail commercial center with improved circulation to and from the freeway and the creation of a new road, Commerce Way, to allow alternate access to the project area. 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. Each unit is inspected on an annual basis, and any substandard housing and property maintenance violations observed are required to be corrected. 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 2008-09 fiscal year. The Agency currently owns fourteen(14) parcels as listed below: 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 1167-161-03 21992 De Berry St. 8 19 2005 2.80 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 0276-246-10 22720 Vista Grande 06 09 09 0.25 0275-242-10 22100 Barton Road 08 1 09 0.87 I 0275-242-11. 22100 Barton Road 01 27 09 0.44 0276-202-54 22747 Barton Road 01 13 09 0.34 i Reports filed with the State On file with the Finance Director are the independent financial audit and the fiscal statement for ; ; the fiscal year 2008-09, draft of the HCD Report, and draft of the State Controller's Report. They final reports were submitted to the State Controller's Office by December 31, 2009. ; 4 1 FISCAL IMPACT: None by this report. Respectfully submitted, Bernie Simon, Finance Director i Manager Approval: . Betsy . Adams City Manager ATTACHMENTS: FY 2008-09 Audited-Financial Statements FY 2008-09 Annual Report of Financial Transactions . FY 2008-09 HCD Report June-3 0, 2009 Final Audited Financial Report Community Redevelopment Agency COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE, CALIFORNIA ANNUAL FINANCIAL AND COMPLIANCE REPORT JUNE 30, 2009 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 r^, 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 in 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 31 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 Standarcis 32 7 " .. , ' . . ANDLQ6ON, MMODY & SCOTT L[P ,"~'`^"^r ,' ^ '=o L�m."'� li"`~ , ,^ ^~^,wu ^! ����� ^ ;,^ =��_v^` 'A o=.~'°^ ~~° ^ ,'="mw I ~, ^w^=;� ,'^ Governing Board Community Redevelopment Agency of the City of Grand Terrace Grand Ternoua. 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 Tannca. California (the ^Agenoy"), a component unit of the City of Grand Terrace, California, as of and for the year ended, June 30. 2009. 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 misstatements. An audit includes exannining, on m test basia, evidence supporting! ' the amounts and disclosures in the financial statements. An audit also includes assessing thd accounting principles used and significant estimates made by managemant, os well ooevaluating the overall financial statement presentation We believe that our audit provides o reasonable basis for our opinions. in our opinion, the financial statements referred to above present foir|y, in all material naapecta, the respective finoncial position of the governmental activities and each major fund of the Community Redevelopment Agency of the City of Grand Terrace, California, as of Juno 30. 2009. and tha respective changes in financial position for the year than ended in conformity with accounting principles generally accepted in the United States ofAmerica In accordance with Government Auditing 8tandardo, we have also issued our report dated December 10. 2009 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 |avvo, ragu|ationa, 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 port of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. � The management's dISCLISSIon and analysis and budgetary comparison Information on pages 3 through 10, and 31 are not a required part of the basic financial statements, but are supplementary Information required by accoLlnting principles generally accepted in the United States of America We have applied certain limited procedures, which consisted principally of Inquiries of management regarding the methods of measurement and presentation of the required supplementary Information However, we did not audit the information and express no opinion on it. t✓ December 10, 2009 -2- 9 Management's Discussion and Analysis Our discussion and analysis of the Community Redevelopment Agency of the City of Grand Terrace (the "Agency") financial performance for the fiscal year ended June 30, 2009 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 capital assets and long term debt. Please read it in conjunction with the Agency's financial statements. FINANCIAL HIGHLIGHTS The Agency spent $14,674,163 on programs and projects, including High School and public infrastructure improvements — Through a partnership with the Colton Unified School District, property was assembled for the new high school and businesses were; relocated The City of Riverside's 48-inch water line was relocated and the water line easements were transferred to the City of Riverside for maintenance Negotiations continue with Riverside County Transportation Agency and Union Pacific Railroad to complete improvements to Main Street. Senior Center and Senior Housing — This project was reviewed for entitlements, the EIR' completed, constructions plans completed, and construction is now underway 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. Affordable Housing Programs — At an average of $30,000 per unit, the Agency's Home, Improvement Program provides eligible low- and moderate-income households loans to fund minor, rehabilitation expenses. One homeowner has been assisted during this Plan period, and additional' projects may occur before the end of the period. The Agency is now reviewing foreclosed homes for, future rehabilitation projects Property Acquisition For Project Site Assembly — Property acquisition for both the freeway- oriented, 120-acre project (former Outdoor Adventure site) and the Town Square commercial project, has been underway 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. 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 Each unit is inspected on an annual basis, and any substandard housing and property maintenance violations observed are required to be corrected. 334 rental homes and 112 multi-family units are inspected each year, and the compliance rate to date is 95% Commercial Exterior Improvement Program — The Agency is working with property owners to provide financial assistance to improve building facades -3- Neighborhood Improvement Grant Program - The Agency is providing limited financial assistance to improve the exterior of older hones in the City Landscape Beautification Projects — The Agency is assisting median landscaping projects along major arterials in the City Other • Assessed values in the project area increased 4 0% over the prior year On the economic financial resources (government-wide) basis, the Agency's total net assets were in surplus position of $11,471,457 and on the current resources (fund financial statements) basis the Agency's fund balances were in a surplus position of$20,613,360 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. 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 ($5,463,852) and on the current resources (fund financial statements) basis reported a change in fund balance of $111,034, for the year This difference is due- primarily to the construction on the senior housing project. It is also 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 financial statements, and required supplementary information The basic 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. 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 The Statement of Net Assets and the 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. -4- 11 i'hese two statements report the Agency s net nssets and changes in not 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 positron. 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 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 • Governmental activities - All of the Agency's basic 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. -5- 1� 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 2009 2008 Current and restricted assets $ 18,267,675 $ 18,742,826 Land held for resale 3,886,391 3,078,374 Capital assets - 7,159,159 Total assets 22,154,066 28,980,359 Long-term liabilities outstanding 7,452,506 9,120,007 Other liabilities 3,230,103 2,925,043 Total liabilities 10,682,609 12,045,050 Invested in capital assets - 7,159,159 Restricted 20,486,472 20,357,141 Unrestricted (9,015,015) (10,580 991) Total net assets $ 11,471,457 $ 16,935,309 TABLE 2 Changes in Net Assets Governmental Activities 2009 2008 GENERALREVENUES Property tax increment $ 8,942,753 $ 7,089,612 Investment earnings 231,858 592,850 Gain on sale of land held for resale - 314.190 Miscellaneous 35,700 290,589 Total revenues 9,210,311 8,287,241 PROGRAM EXPENSES Community development 1,939,409 1,124,393 Pass-through payments 2,341,265 2,181,328 Project improvement costs 9,925,158 293,031 Interest on long-term debt 468,331 510,737 Total expense 14,674,163 4,109,489 Change in net assets $ (5,463.852) S 4,177,752 1'� Revenues — Statement of Activities The Agency's total revenue from governmental activities was $9 210,311 Redevelopment tax increment comprised $8,942,753 or 97 1 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 $6,688,980, an increase of 36.2% over last year Expenses — Statement of Activities Overall expenses of the Agency totaled $14,674,163 Project Improvement costs amounted to $9,925,158, which includes $7,159,159 of prior year costs included in construction in progress for the Senior Center, or 72.1 percent of the total. Expenses specific to other community development activity, including planning code enforcement and housing activities, totaled $1,939,409 or 13 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 amount to $2,341,265 or 15 9 percent of total expenses Making up the remainder of expenses were interest on debt service ($468,331 or 3.2 percent). Net Assets— Statement of Activities The Agency's net assets decreased $5,463,852 during the year as a result of the transfer of the, construction in progress amount of $7,159,159 on the Senior Center to the Developer. 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, 2009 of$20,613,360, an increase of less than 1% from last fiscal year TABLE 3 Fund Financial Statements— Fund Balances 2009 2008 Reserved for: Encumbrances $ 147,574 $ 316,518 Debt service 1 300,546 1,311,615 Long-term advances receivable 4:606,950 4,606,950 Long-term notes receivable 713,000 741,000 Land held for resale 3,886,391 3,078,374 Total reserved fund balances 10,654,461 10,054,457 Unreserved, reported in: Special revenue fund 1 517,653 3,990,580 Debt service fund 8,298,948 7,029,755 Capital projects fund _ 142,298 (572,466) Total Unreserved fund balances 9 958.899 10,447,869 Total fund balances $ 20,6132360 $ 20,502,326 -7- 1r.� Fund Balance Analysis by Fund The Special Revenue Fund revenues were $1.825,693, and expenditures and financing uses were 54 155,751 Fund balance decreased by $2,330,058 to $3,171,432. The decrease primarily related to project costs of the Senior Housing project. The Debt Service Fund revenues and financing sources were $7,293,888, and expenditures and financing uses were $6,035,356 Fund balance increased $1,258,532 to $13,906,647 The Capital Projects Fund revenues and financing sources were $1.845,024 and expenditures and financing uses were 3662,464 Fund balance increased $1,182,560 to $3,535,281. 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 midyear review to adjust revenues, augment current year expenditure appropriations, adjust appropriations for prior year department carryover, and establish or increase designations of fund balance • Other revenue adjustments and expenditure appropriations approved after the original budget is adopted, and before or after midyear report is approved. Actual revenues in the Housing Fund were $272,818 above revised estimates. This is primarily due to increase in tax increment. Actual tax increment exceeded the estimate by $382,265, while investment earnings were $108,847 under final projections. Program expenditures were under final budget by $20,267, resulting in a budgeted surplus of $293,085 and an actual decrease to fund balance of $2,330,058. CAPITAL ASSETS The Agency's investment in capital assets for its governmental activities as of June 30, 2009, amounts to $0 Construction was completed on the Senior Housing Project, and the construction in progress amount at the beginning of the fiscal year and additional costs during the current year were expensed as the asset was transferred to the Developer -8- DEBT ADMINISTRATION At year-end, the Agency's governmental activities had $9,202,506 in outstanding bonds, loans and notes TABLE 4 Outstanding Debt, at Year-End Governmental Activities 2009 2008 Refunding tax allocation bonds $ 6,930,000 $ 8,495,000 Certificates of participation 2,520,000 2,655,000 Premium on bonds 71,699 95,598 Deferred charges (319,193) (425,591) Note payable - 10,972 Total outstanding debt $ 9,202,506 $ 10,830,979 ECONOMIC FACTORS Although delayed by legal challenges, the Agency is progressing with projects in 2008-09, 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 trend that began last year is accelerating. San Bernardino County's median new home price was down 13% compared to the previous year. New home sales fell 49.7% countywide, while existing home sales fell 144 3% The Inland Empire regional unemployment rate was at 13% in May 09 ' The general economy for Grand Terrace approximates the regional statistics. Taxable sales at September 2009 decreased 11 8% compared to the previous year Assessed values for 2009-10. decreased 5 1%. 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. 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 which includes ABx4-26 which will raid $2.05 billion from redevelopment funds this year A lawsuit has been filed by the Community Redevelopment Association challenging the constitutionality of ABx4-26 as part of the 2009 state budget. 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. The lawsuit seeks both to invalidate sections of AB 1389 and prohibit the State from forcing county auditors to divert redevelopment funds to the Educational Revenue Augmentation Funds (ERAF), now called SERAF in the current budget The lawsuit contends that State takes of redevelopment funds to balance the State's budget violate 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 also unconstitutionally impair contracts, particularly covenants pledging future tax revenues to repay bonds. -9- 1f CONTACTING THE AGENCY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, custorners, 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. U -10- 17 Government-Wide Financial Statements Co►nmunity Redevelopment Agency of the City of Grand Terrace Statement of Net Assets June 30, 2009 ASSETS Cash and investments $ 11,107,450 Cash and investments with fiscal agents 1,300,546 . Interest receivable 31,090 Accrued revenue 419 I Due from other governments 208,801 Due from City of Grand Terrace 4,606,950 Loan receivable 111,928 Land held for resale 3,886,391 Notes receivable 713,000 Deferred charges 187,491 Total assets 22,154,066 LIABILITIES Accounts payable and other current liabilities 442,929 Accrued interest payable 126,888 Due to other governments 530,736 Due to City of Grand Terrace 267,622 Deferred revenue 111,928 Non-current liabilities Due within one year 1,750,000 �- Due in more than one year 7,452,506 Total liabilities 10,682,609 NET ASSETS Restricted for- Community development 3,171,432 Capital projects 3,535,281 Debt service 13,779.759 Unrestricted (deficit) (9,015,015) Total net assets $ 11,471,457 The accornpanying notes are an integral part of these financial statements -'11- 19 Community Redevelopment Agency of the City of Grand Terrace Statement of Activities For the Year Ended June 30, 2009 PROGRAM EXPENSES Governmental activities. Community development $ 1 939,409 Pass-through payments 2,341,265 Project improvement costs 9,925.158 Interest on long-term debt 468,331 Total program expenses 14,674,163 GENERAL REVENUES Taxes - Incremental property taxes 8,942,753 Investment earnings 231,858 Miscellaneous 35,700 Total general revenues 9,210,311 Change in net assets (5,463,852) Net assets, beginning of year 16,935,309 Net assets, end of year $ 11,471,457 The accompanying notes are an integral part of these financial statements -12- 2 Fund Financial Statements 21 Community Redevelopment Agency of the City of Grand Terrace Balance Sheet Governmental Funds June 30, 2009 Total Special Capital Governmental _Revenue Debt Service Projects Funds ASSETS Cash and investments S 1,625,815 S 8,813,453 S 668,182 S 11,107,450 Cash with fiscal agents - 1,300,546 - 1,300,546 Interest receivable 5,800 24,846 444 31,090 _ Accrued revenue 419 - - 419 Due from other governments 41,480 167,321 - 208,801 Due from City of Grand Terrace 300,205 4,306,745 - 4,606,950 Loans receivable 111,928 - - 111.928 Property held for resale 640,166 - 3,246,225 3,886,391 Notes receivable 713,000 - - ____ _- 713,000 Total assets S 3,438,813 $ 14,612,911 S 3.914,851 $ 21,966,575 LIABILITIES AND FUND BALANCES Liabilities. Accounts payable $ 155.453 $ 175,528 S 111,948 $ 442,929 Due to other governments - 530,736 - 530,736 Due to City of Grand Terrace - - 267,622 267,622 Deferred revenue 111,928 - - 111,928 Total liabilities 267,381 706.264 379,570 1,353,215 Fund Balances Reserved for: Encumbrances 408 408 146,758 147,574 Debt service - 1,300,546 - 1,300,546 Long-term advances receivable 300,205 4,306,745 - 4,606,950 Long-term notes receivable 713,000 - - 713,000 Property held for resale 640,166 - 3,246,225 3,886,391 Unreserved, reported in Special revenue fund 1,517,653 - - 1,517.653 Debt service fund - 8,298,948 - 8,298,948 Capital projects fund - - 142,298 142,298 Total fund balances 3,171,432 13,906,647 3,535.281 20,613,360 Total liabilities and fund balances $ 3,438.813 $ 14,612,911 S 3,914,851 S 21,966,575 The accornpanying notes are an integral part of these financial statements -13- 2, Community Redevelopment Agency of the City of Grand Terrace Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets For the Year Ended June 30, 2009 Total fund balances of governmental funds $ 20.613,360 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, 2009 are: Bonds payable (9,450,000) Deferred charge on refunding 319,193 Costs of issuance 187,491 Premium received on issuance (71,699) Accrued interest payable (126,888) Net assets of governmental activities $ 11,471,457 The accompanying notes are an integral part of these financial statements -14- 23 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, 2009 Total Special Capital Governmental, Revenue Debt Service Projects Funds REVENUES i ax increment 5 1,788,550 S 7 154,203 S - S 8,942,753 Use of money and property 37,143 139,685 55,030 231.858 Miscellaneous = _ _ 35,700 35,700 ' I 1 Total revenues 1,825,693 7.293 888 90,730 9,210,311 EXPENDITURES Current: Economic development 642,830 - 271,763 914,593 , Pass-through payments - 2,341,265 - 2,341,265 Capital outlay Project improvement costs 2,555,593 - 210,406 2,765,999 Debt service. Principal - 1,700,000 10,972 1,710,972 Interest and other charges - 684.234 221 684,455 Total expenditures 3,198,423 4,725,499 493,362 8,417 284 Excess of revenues over(under) expenditures (1,372,730) 2,568,389 (402,632) 793,027 OTHER FINANCING SOURCES (USES) Transfers in (out) (613,577) (1,140,717) 1,754,294 - Transfers to the City of Grand Terrace (343,751) (169,140) (169,102) (681,993L Total other financing sources (uses) (957,328) (1,309,857) 1,585,192 (681,993) Net change in fund balances (2,330,058) 1,258,532 1,182,560 111,034 Fund balances, beginning of year 5,501,490 12,648,115 2,352,721 20,502,326 Fund balances, end of year $ 3,171,432 $ 13.906.647 S 3,535,281 S 20,613.360 Pie accompanying notes are an integral part of these financial statements -15- ZQ 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, 2009 Net change in fund balances of governmental funds $ 111,034 Amounts reported for governmental activities in the statement of activities are different because- Donations of capital assets decrease net assets in the statement of activities, but do not appear in the governmental.funds because they are not financial resources. (7,159,159) 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 Principal payments on debt 1,710,972 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 (62,497) Amortization of premium 23,899 Change in accrued interest expense 18,297 Change in net assets of governmental activities $ (5,463,852) The accompanying notes are an integral part of these financial statements -16- Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2009 1. 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 governments 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, 2009 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 1_7 Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2009 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 iterns not properly included among program revenues are reported instead as general revenues 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 items are 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- 2� Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2009 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 j 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 Land 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, 2009 net realizable value for land held for resale totaled $3 246 225 in the Capital Projects Fund and $640,166 in the Special Revenue Fund with these amounts offset by a reservation of fund balance -19- ?A Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2009 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 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 ll. 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- �,r Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2009 III. DETAIL NOTES ON ALL FUNDS Note 2: Cash and Investments Cash and Investments as of June 30, 2009 are classified in the accompanying financial statements as follows. t Statement of Net Assets- Cash and investments $ 11,107,450 Cash and investments with fiscal agents _ 1,300,546 $ 12,407,996 Cash and Investments as of June 30, 2009 consist of the following- Deposits with financial institutions (pooled with City) $ (3,801,288) Investments 16,209,284 $ 12,407,996 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) th'at 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- �1 Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2009 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 i 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 None None 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 NIA 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 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 to market interest rate fluctuations are presented below. information about the Agency's investments pooled with the City can be found in the City of Grand Terrace's Annual Financial Report. -22- 3s Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2009 Note 2: Cash and Investments (continued) 12 Months Investment Tyke Amount or Less Money market mutual fund $. 1,300,546 $ 1,300,546 Local Agency Investment Fund _14,908,738 14,908,738 Total $ 16,209,284 $ 16,209,284 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 of the investment. This is measured by the assignment of a rating by a nationally recognized 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, information about the Agency's investments pooled with the City can be found in the City of Grand Terrace's Annual. Financial Report. Currently, LAIF is not rated by an accredited rating agency. Minimum Investment Type Amount Legal Rating Actual Rating Money market mutual fund $ 1,300,546 AAAm AAA Local Agency Investment Fund 14,908,738 N/A N/A Total $ 16,209,284 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, 2009 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 LAIF for the entire LAIF 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- 3d Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Staternents June 30, 2009 Note 3: Due from City of Grand Terrace In April of 1980, the Community Redevelopment Agency of the City of Grand Terrace entered into a pass-through agreement with the City of Grand Terrace which provided that certain tax increment generated by the Agency project area be allocated to the City of Grand Terrace beginning in fiscal year 1981/82. This agreement was in noncompliance with state statutes. As a result, $3,689,025 of tax increment was allocated to the City's General Fund through June 30, 1993, of which $737.805 represents amounts which should have been allocated for 20 percent low and moderate housing set- aside as required by state statutes The City and Agency agreed to the following plan for repayment of tax increment monies to the Agency's Debt Service and Capital Projects Funds- Agency Low and Moderate Income Housing Fund Unpaid 20 percent set-aside of $737,805, plus interest from fiscal year 1981/82 through June 30, 1993, of $138,948, totaling $876,753 has been recognized as an advance to the City's General fund, to be paid as funds are available, with interest accruing at an interest rate equal to the average Local Agency Investment Fund yield. The balance at June 30, 2009 is. $ 300,205 Agency Debt Service Fund To the extent of unpaid advances made by the City to the Agency and outstanding at June 30, 1992 ($2,450,023), tax increment monies allocated to the City rather than the Agency Debt Service Fund were treated as repayment of advances owing to the City. The effect on interest paid by the Agency on outstanding advances payable to the City was adjusted, with the difference being treated as excess repayment by the Agency of outstanding advances payable. The resulting amounts owing of$1,073,84.6 at June 30, 1993, to the Agency by the City carry the same terms as described above. 46 Advances made to City and Agency Low Income HousingProgram 1,232,899 9 3,232,899 Balance at June 30, 2009 4,306,745 Total balance at June 30. 2009 $ 4,606,950 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, 2009 is $111,928 -25- Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2009 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, 2009 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, 2009 is $3,246,225 Note 6: Notes Receivable The amount of $713,000 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 noncurrent nature of the above receivables, fund balance has been reserved accordingly Note 7: Capital Assets Capital asset activity for the year ended June 30, 2009 was as follows Beginning Ending Balance Additions Deletions Balance Governmental activities: Capital assets, not being depreciated Construction in progress $ 7,159,159 $ - $ 7,159,159 $ - Total capital assets, not being depreciated $ 7,159,159 $ - $ 7,159,159 $ - Note 8: 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 -26- 3 Community Redevelopment Agency of the City of Grand Terrace Notes to Financial.Statements June 30, 2009 Note 8: Long-term Debt (continued) Debt service payments to maturity for the 1997 Refunding Certificates of Participation are as follows. Year Ending June 30, Principal Interest 2010 $ 140,000 $ 133 525 2011 150,000 125,623 2012 155,000 117,311 2013 165,000 105,591 2014 170,000 99,463 2015 - 2019 1,010,000 342,805 2020 - 2022 730,000 61,039 Total $ 2,520,000 $ 985357 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 1 and September 1, commencing March 1, 2005. Principal payments are due annually commencing March 1, 2005 through March 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 $ 1.610,000 $ 215,150 _ 201 1,670,000 161,925 2012 1,720,000 104,625 2013 1,930_000 36,188 Total $ 6,930,000 $ 517,888 -27- :17 Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2009 Note 8: Long-term Debt (continued) C. Note Payable In August 2003, the Agency entered into a loan agreement in the amount of $100,000 with Alba B. DeBenedet, Trustee of the Alba B. Zampese 1988 Trust. The proceeds of the loan are to be used along with other available funds for the City of Grand Terrace maintenance building for public works Interest on the loan is payable semi-annually on February 14 and August 14 at the rate of 4.25 percent, commencing February 14, 2005 The principal on the loan is payable semi-annually on February 14 and August 14 commencing February 14, 2005, This loan was paid off in the current fiscal year d The following is a schedule of changes in long-term debt of the Agency for the fiscal year ended June 30, 2009 Beginning Ending Due Within Balance Additions Deletions Balance One Year Bonds payable. 1997 Refunding Certificates of Participation S 2,655,000 S - $ (135,000) $ 2,520,000 $ 140,000 2004 Refunding Tax Allocation Bonds 8,495,000 - (1,565,000) 6,930,000 1,610,000 Less deferred amounts On refunding (425,591) - , 98 (371,199 - (238 Plus premium on issue 95,598 - (2399) ,69 - Total bonds payable 10,820.007 - (1,617,501) 9,202,506 1,750,000 Notes payable. Note for 22799 Barton Road 10,972 __ (10,972) - - Total notes payable 10,972 - (10,972) - - Total long-term liabilities $ 10,830 979 S - $ (1,628,473) $ 9,202,506 S 1,750,000 -28- �a Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2009 Note 9: Interfund Transfers Interfund transfers for the year ended June 30, 2009 are as follows Fund Receiving Transfers Fund Making Transfers Amount Debt Service Special Revenue $ 613,577 Capital Projects Debt Service 1,754,294 $ 2,367,871 The transfer into the Debt Service fund was made for servicing the 2004 refunding tax allocation bonds. The transfer into the Capital Projects fund was made to cover a negative cash balance during the fiscal year Note 10: 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, 2009, was $2,341,265. 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 $143,430 to the State of California's Education Revenue Augmentation Fund (ERAF) for the fiscal year ended June 30, 2009 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 improvements benefiting the City and 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 As of June 30 2009, 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 dny required reimbursements will not be material -29- 39 Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2009 Note 13: Subsequent Events On August 28, 2009, the Agency issued $2,162,000 of refunding bonds to refund the City of Grand Terrace Refunding Certificates of Participation, Issue of 1997. The interest rate on the bonds is 4 76% and the maturity date is September 1, 2020. -30- Required Supplementary Information 41 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, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Tax increment S 1,406,285 S 1,406,285 $ 1 788.550 $ 382,265 Use of money and property 155,990 145,990 37,143 (108 ) ' (600 Miscellaneous 600 600 - (600) Total revenues 11562,875 1,552,875 1,825,693 272,818 EXPENDITURES Current: Economic development 442,558 664,690 642,830 21,860 Capital outlay Project improvement costs 880,000 2.554,000 2.555,593 (1,593) Total expenditures 1,322,558 3,218,690 3.198,423 20,267 Excess of revenues over(under) expenditures 240,317 (1,665,815) (1,372,730) 293,085 OTHER FINANCING SOURCES (USES) Transfers out (913,577) (913,577) (613,577) 300,000 Transfers to the City of Grand Terrace (166,167) (166,167) (343,751) (177,584) Total other financing sources (uses) (1,079,744) (1,079,744) _ (957,328) 122,416 Net change in fund balance (839,427) (2,745,559) (2,330,058) 415 501 Fund balance, beginning of year 5,501,490 5,501,490 5,501,490 - Fund balance, end of year S 4,662,063 S 2,755,931 $ 3,171,432 S 415,501 -31- ~o^^ ."°"` `, "^m^ru ^a'x`c.^ FO/GERs, ANDERS0v4 MAi0DY & Sc[[rl-, [LP xm*, c,^ cr^ nn^Dp,"^^ °eL.�J." ,' G,A. KAT F L °' )�yc,^ ,614 '^^=" w"" C,^ ,"^onmo. "e,"^on^:c ',^ r^^.u-1 ^p ==° rp. Governing Board ~` Community Redevelopment Agency � ) uf the City of Grand Terrace —~ Grand Tarraoa, California REPORT QN INTERNAL CONTROL OVERFINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED C]NAN AUDIT C]F FINANCIAL STATEMENTS PERFORMED |N ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited the financial atnbannentn of the governmental activitieo, each major fund and the aggregate remaining fund inhonnaUonof the {�onnnmunih/ Radave|opnnantAgency zf the City 'ofGrand Terrace (the Agency), aconoponant unit of the City of Grand Terrace, California, as of and for the year ended June 30. 2009. which oo||ootiva|y comprise the Agency's basic financial statements and have issued our report thereon dated December 10. 2008. 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, -/oau�d 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 opinions on the financial otatannenta, but not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control over financial reporting Acoording|y, we do not express an opinion on the effectiveness of the Agency's internal control over financial reporting. A control deficiency exists when the design or operation of control does not a||ovv management or emp|oyeeo, in the normal course of performing their assigned funotiona, to prevent or detect misstatements on o timely basis. A significant deficiency is n control daficianuy, or combination of control defioienoien, that adversely affects the Agency's ability to initiate, authorize, record, proceoo orrepo� �nanoio| data reliably in accordance vv|thgenerally accepted accounting principles such that ' there is more than a remote likelihood that a misstatement of the Agency's financial nanoi statements that is " more than inconsequential will not be prevented or detected by the Agency's internal control. w*p,c v^wmrn»En ~ vo*m�ra o*nem 'wn , ,v�,a �� ~ ^ `^ ` -`' `�' 'p» '32' A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Agency's internal control Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be 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. Compliance and Other Matters As part of obtaining reasonable assurance about whether 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that were reported to management of the Agency in a separate letter dated December 10, 2009. This report is intended solely for the information and use of management, Agency Board, others within the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. December 10, 2009 -33- June A, 2009 Annual Redevelopment Report of Financial Transactions 45 I I REDEVELOPMENT AGENCIES r FINANCIAL TRANSACTIONS REPORT COVER PAGE Community Redevelopment Agency Of The City Of Grand Terrace Fiscal Year 2009 ID Number. 13983633700 l Submitted by: Fi/v,4.,y 702 Signature Title 80~&-40 S ,I) /yz h p� Name(Please Print) Date Per HeaW and Safely Code section 33080,this report Is due within six months after the end of the fscal year.The report is to Include two(2)copies of ttw agoncys component unit audited financial statements,and the report an the Status and Use of the Low and Moderate Income Housing Fund(HCD report). To meet the filing requirements,all portions must be'received by the California State C0ntrC11W%Oft @. i 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 txe using a File 2.Sign this cover page,end mail complete report to either Tranefer Protocol(FTP)program or via diskette. address below with 2 audits and the HCD report. 3.Sign this cover page and mail to either address below with 2 audits and the HCD report Report'wiN not be considered filed until receipt of this signed cover page. i I Mailing Address: Express Mailing Address: State Controllers Office State Controllers Office Division of Accounting and Reporting Division of Accounting and Reporting Local Government Reporting Section Local Government Reporting Section P. O. Box 942850 3301 C Street, Suite 700 Sacramento, CA 94250 Sacramento, CA 95816 I i - i I I 4 i 1 G i{.C� -- ._ _ ., r!'1�' �t�t• Ty�s:y }�`,i'}�4�ap M _ ?k7ce TS".r"Cf,+'ia ;+� •'yy�l `ry G •..(i�Siw 4(T1f�1'. .. � :h:: '' •- y1.,.: •ii`ti. ISM S� '�`' •. R��}*is:;• � .,, i� ?Y.sl Yr '.�.T i,4.7 .,�I.:„.a��..'.:tr1'Ls4Jli`C.:A•iR�U:;• YesCS„rF.yvlFrrs 3x�p9.aSt+i°;?lL.r.Y 3u: ri!5 Y�''`I ths�3'�'T` ,�.r.' wza •4.(r`1'-f'lq:�.:i>-.Sim ' 'c•� '�11II II n�nl If7411�Y`f C+'t Fiscal Year Me s f th p@�p L�aeocv titiciai mm ,C�f1,,t ereraa< IFerre I IMaryetta B et sy 909)8248621 es Be (909)824-8821 y � Smon� . Garcia Lee Ann MIN Mesa _ Brenda (909)824-8821 So MI.-�� S Walt � °t��1Lga�ad 8�_ tancklewttz F.,.;. .,::,,:;•� �"°�".,�: R Rogers,Anderson,Malody&Scott,LLP __ Ml IMIAr Ladum( •s-�;-y� � � Katherine ;j 309 W.4th 00 North D Street rxvk? m �� �1f Santa Ana Isan Bernardino 82701-4b02 82401- Street 1 22795 Barton Road 5`"� (714)316-2113 (909)889-0871 Street 2 - City Grand Terrace Stabs CA Zip 92313 529b Phone (909)824-8821 ® Is Address Changed? �ii' '::,i.;i"+�ut'..-a�.. !;!v�j=�i''j ,i °! '-yr' y'�'�:. ;:t sk:".. ;�•p�t. ��cF�<t�..l';' , � �,r::�z' i n ''.d :,!'.'tr ^•�L;• .y. liege' Info(� t1on... , ,.•.{ M rrrr'N �} '�i� yL�� ri "a•s'-`yM T TJ E'. 'r :°d�,,.•.i G.;i.:(;k}�,i „•'R!t� _'Y `' z, r R 4ge.9'i,r 1 .a46 1'R. _"h.,xl' P.�Yljq'i' .'a4ti�kid5K�43 A.. .q,-. ..,`1FW�• �f ;...,''.'a� �.. f P r49n 9 4' i �'se�a—"s�:..4Y •�'. '' p�'," r le'• r •.. i-ems ai_�.rn�a1A'RL*�att� 3s�:fl� 5 � ji"<.,4.,r�. SS?�; 3 .soma's': J e 6 ma�yy```' ■M■wy' f r>�idTeir'r; .1 •'!4',: ..•`,■■qww.--. 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Ina, alp scans ct�tin :' �,t, 'O },_r .�af;.t?z;;.�S;r '"{.T v..:'„�.r G ::�'.t:•e:' ,.:ry.i�' '' 'rc=�� �` .•.��t[„`1�,`�,�•.4 ���� ��' ..�•i7". �R.�,'T ,.�'`,52�i>`` ,-Y5r':�r:J ��J,,��' y r'����+yF' r iYt� st � � t .:� >k � A ,.[ai+:`a'N•. 1y- w'sS.t�'�""a:rin � t � 3ffei3•:3: Audit Information Fiscal Year 2009 Yes if compliance opinion includes exceptions, Was the Report Prepared from Audited Financial Data, state the areas of non-compliance,and and Did You Submit a Copy of the Audit? describe the agency's efforts to correct. Indicate Financial Audit Opinion Unqualified If Financial Audit is not yet Completed,What is the I _ Expected Completion Date? If the Audit Opinion was Other than Unqualified,State Briefly the Reason Given Was a Compliance Audit Performed in Accordance with Yes Health and Safety Code Section 33080.1 and the State Controller's Guidelines for Compliance Audits,and Did You Submit a Copy of the Audit? Indicate Compliance Audit Opinion Unqualified If Compliance Audit is not yet Completed,What is the Expected Completion Date? Audit Information Page 1 12M 7/2009 Community Redevel oment A9A1!9y Of The City Of Grand Terrace 2009Grand Terrace Project Area Please Provide a Brief Descrlption of the Activities for this Project Area During the Reporting Year. Forwarded from Prior Year? Enter Code for Type of Project Area Report P P-Standard Project Area Report A=Administrative Fund 1-Senior Affordable housing Project I-'LOW and Moderate Income Mousing Fund M=Mortgage Revenue Bond Program 2-Rehabllitation of low and moderate O=Other Miscellaneous Funds or Programs S=Proposed(Survey)Project Area Income households Does the plan Include Tax Increment Provisions?3-Property acquisition for freeway Yes oriented project and Town Square Data Project Area was Established (MM-DD-YY) e/27/1978 commercial project Most Recent Data Project Area was Amended 7/2y�q Did this Amendment Add New Territory? No Most Recent Date Project Area was Merged Will this Project Area be Carried Forward to Next Year? Yes Established Time Limit: Repayment of Indebtedness (Year Only) 203q Effectiveness of Plan (Year Only) 2024 Now Indebtedness (Year Only) -20041 Size of Project Area In Acres 2 3fi8 Percentage of Land Vacant at the Inception of the Project Area 15.0 Health and Safety Code Section 3332o.1 (xx.x%) Percentage of Land Developed at the Inception of the Project Area 85.0 Health and Safety Code Section 33320.1 (xxx%) Objectives of the Project Area as Set Forth in the Project Area Plan RICPO (Enter ff>e Appropriate Codes)in Sequence as Shown) R=Residential 1=Industrial C=Commercial P=Public O=Other FCk ... ` ;.%',�,"'::%r�cir+3a'yY��'• 1r�i~��a',+; Y�• it "�`P;1`0)8. t�A -�,3 •"�a�„s%,3u•�fr�`,: sm�sca±,�t;�+s},�e.:;��t�{xse�ax.::•,..:::;.,,, _. _ .. :AF'.£;��f:�'a1�;:�'"S�����'�1� �?a��ru� tF>'' ti� 'dse�� 5�i �9 'Y'' fi: ,,.- •��.:�,: ;�.�,., .a,,,,t�f D e -ty e e WN� ly ftdw C; n 99 n! ffig WO Assessed Valuation Data Fiscal Year 2009 Project Area Name !Grand Terrace Project Area Frozen Base Assessed Valuation F----137.835—.31-1 r7- �884;. 234 Increment Assessed Valuation :�I�, Total Assessed Valuation F7�:8�50,070,195 Assessed Valuation Data Page 1 12/17/2009 LA r i � ;., ��'��«, y %SAJq ��`�t1a\ /i Y;h :G rldkTerce::F;, •{, ; , << \1}.• n-4:`ili. d^iiG... .l�ti. � .:Uh��'J'w",1 �•w5'�ib���W`/I.C.T{),I.IT'� �[ :SC�L'.. �.-L .' ..4^:_Z :�i -tt..y`^.'' _f_y?c�:`_:. C'n{.f;, `�?• -.b:�i�,k'Ai'St:'t„`.ir`��wTtr d` ;:�7s• :,�.,r.fnS�'':'k 1 ;�� d' �,1�?3� "-9Ct!:<Z4%���. �r :r sxa:�.:-r�: �u,...e.�GS��.a�:1'aSt:.iiisl£•::tr di+' - �' ?'"� tt. ,,.r.+a- C� .°,�' ,�.�i�� r�•> � ;{,w ,1..,:p�?`""?,.-,obi'.'R i.:.:' 'g 1iPj. ,{•�; y _ a<.�.'t{':.•s• :,;�:" ``,,))pp t'�.. ,F'e�r:�W1r� ri• .:� /� s !L..n?t:...- 4':;Nt.;:. ,ti..�:i�,.''.;`tN nt.,< sC .,. _. r::t �i{s'^st�'�1:}l Y-' }. y.`JF � V e�.`' �,Ae t✓ �'v�y�R�. 'Tt: .�"{; `ti �(�;1: �+Sq:N a� Flia �a•2�,a' Yt �` �'�: �y:;vi; il�,y»r •�;- <'= .;_ Pass-Through L School District Assistance Fiscal Year 12009 Project Area Name Grand Terrace Project Area Tax Increment Pass Through Detail Other Payments Amounts Paid To Taxing H&S Code H&S Code H&S Code Total H&S Code H&S Code Agencies Pursuant To: Section 33401 Section 33676 Section 33507 Section 33445 Section 33445.5 County 2,170,875 Cities — u- 138 292 $138 292 k'r uN�s' 'Z 'e' er } y School Districts _ $0 Community College District 32.098 $32,098_ —� Special Districts -------._.______ J. $0 i''ti' 'ir s}iS.yf'z,.1Cyi d.Y%ar Total Paid to Taxing $2,170,875 -$170,390 $2,341265 so Agencies Net Amount to Agency - t,.., " $8.601,488 .. Gross Tax Increment Generated 89417531 Pass-Through!School District Assistance Page 1 12/77l2009 .n .{:�` far^'.�;w^.l�t:t':it'^•! .b"C:�r _:v{i`� /� j - ,�5C ��i4':.k+�fal :�:I. .,.. .,l,y ,z -µ�•ta,�:�.:-- ps� � '' -i`� �y iA 1`�.::a1�is" C„ tt�t�►',:e l:��.g�,w�:,..,. °..,.., �, `. �1�.� '+�� ���"."15,ri. `+ .e �Y.. ��� •� a.�g`',yJ�i'A ,%.Syi^'/. ��� �l ]T�IY}W•'fy.'t•�' i.:fYa'.iti Summary of the-Statement-of-indebtedness-Project Area Fiscal Year 2009 project Area Name G(artd�TefracQl?rojaotZ'fAEea'�„aw`.: '.;.�.:�:�',;�cF,�: a;;aha:a 02w' , tt``� `•r`r!; a.F;. a� 3,226,563 Tax Allocation Bond Debt 2,803,323] Revenue Bonds Other Long Term Debt 155,725 City/County Debt 3,657,561 Low and Moderate Income Housing Fund 9,861.222 Other $19,704,394 Total 11,435,003 Available Revenues Net Tax Increment Requirements $8,269,391 + 1 12/17/2009 e Summary of the Statement.ot Indebtedness-Project Area Page - i lJ1 ' — UT ' Of T G In Agency Long-Term Debt Fiscal Year 12009 Project Area Name Grand �n::d:Terrace ProjectArea - ------ Forward from Prior Year Bond Type Certificates of Participation Year of Authorization I 7T997] Principal Amount Authorized r-3, 000 Principal Amount issued 3,7-30—.0(-)0] Purpose of Issue 1Refunding of the 1991 Lease-Rev Bonds Maturity Date Beginning Year 1997 I - Maturity Date Ending Year 12022 Principal Amount Unmatured Beginning of Fiscal Year f .$21,655.0.00 Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year F-1 35,000 Principal Amount Deteased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $2,5201000 i Principal Amount In Default Interest In Default Bond Types Allowed: Is Tax Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes;Financing Authority Bonds,-City/County Debt;US;State;Loans;Lease Obligations;Notes;Deterred Pass-Throughs;Deferred Compensation;Other Agency Long-Term Debt Page 1 12/17/2009 U1 W �.v e �Qt "T' " ni i rheq ,q Qft, Agency Long-Term Debt Fiscal Year 4009 Project Area Name Gran 1.Terraqq.ROo q4t Area Forward from Prior Year Bond Type City/County Debt Year of Authorization 20061 Principal Amount Authorized Principal Amount Issued 267,622 Purpose of Issue Improvements 20661 Maturity Date Beginning Year Maturity Date Ending Year 2010 Principal Amount Unmatured Beginning of Fiscal Year $267.622 1 Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $267.622 Principal Amount In Default Interest In Default Bond Types Allowed: Tax Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes;Financing Authority Bonds;City/County Debt;US;State; Loans;Lease Obligations;Notes;Deterred Pass-Throughs,Deferred Compensation;Other Agency Long-Term Debt -Page 2 2117/2009 I'Ji r- eu�pg���( nt�art�yC.Ll�-8:Cr�7+� �8fe4:t: f•� i �T,M'&N 1Til"r SpY4ILZ:".{e,,t.�s••, .i:. :�i.: ,.?'�" W;'. .k •?'o, :;W; .,to ri l,l.�`��,+r,yy •,ifi`k'.G:".�., s':"^,., 5r:4:"' �:��::; :,� � a�Q�•`��lia�ne� ".,.; i t -;•` 4�Q �� ion'�sRea• "�,„�•�<<`i�:� ;z�"�:E;<<•,r;...==: . ..•�:-; Agency Long-Term Debt Fiscal Year 12009 Project Area Name lGrand Terrace Pro-ect Area Forward from Prior Year Bond Type lNotes -- —I Year of Authorization 12003 Principal Amount Authorized 100,000 Principal Amount Issued 100,000 Purpose of Issue Capital Maintenance Maturity Date Beginning Year 2004 Maturity Date Ending Year 2008 Principal Amount Unmetured Beginning of Fiscal Year $10,972 Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year 10,9721 Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $0 Principal Amount In Default Interest In Default Bond Types Allowed: Tax Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes;Financing Authority Bonds,City/County Debt;US;State; f Loans;Lease Obligations;Notes;Deferred Pass-Throughs;Deferred Compensation;Other Agency Long-Term-Debt Page 3 12/17/2009 Ln U1 //+� pi _®d it to mt:n Of£Gr nd Yer.race;:;" i.0 IJ 0 '' "�"• '1 �� ;;r...,�., r i s7e Al .S5iik4u." a3` h�tl'I`�"` c^R::Tn ::i:tr5.�1"v'fiu: ..�:�`;'..n��:b' 1.ry,'9;' �jL?r•�..4: .5.� -'I':'Ltlnr v:,(�ir'F r',rMJ.'.�F,"� k^ �Y , Agency Long Term Debt Fiscal Year 2009-= _ ----� Project Area Name lGrand Terrace Project Area Forward from Prior Yeart3 � �' Bond Type Tax Allocation Bonds Year of Authorization 2004 Principal Amount Authorized 131000,000 I Principal Amount Issued 13,000, �. -. --00-0-I Purpose of Issue Refund 93A end 938 Bonds,Zions Bank Loans Maturity Date Beginning Year �2004 Maturity Date Ending Year l— 20121 Principal Amount Unmatured Beginning of Fiscal Year $8,495,000 j Adjustment Made During Year 71 Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year 1,565,000 Principal Amount Defeased During Fiscal Year l _ Principal Amount Unmatured End of Fiscal Year $6,930,000 } Principal Amount In Default Interest In Default i Bond Types Allowed: ` T ax Allocation Bonds,Revenue Bonds;Certificates of Participation;Tax Allocation Notes;Financing Authority Bonds;City/County Debt;US;State, Loans;Lease Obligations;Notes;Deferred Pass-Throughs;Deferred Compensation;Other 1 I Agency Long-Term Debt Page 4 �12MW2009 Oft r � ,-, 7 ,a•`���'��iz STd(R`� I �i+�f�4 `�� ��� �.; l 'u Q,� e q;"t ti'r'`.L'1' `- ' ..fi%f, gilt :t:' +i�� 'x",;:: rti:' i:s'^ +.� rz,• W �"3.7' '1tiSRk'Y�z�c°.Ifi�i�etii 'i«.r�i, t.,tp^.�!, "t �;3{*.,r'��:t>,:t�.deti:�l:u„ is+`;i %��<:.:�.. ;�p.�..at;s' 4w:r,>i'�ti ...:s:�<;:v,r•;:. r.• -:i�.,, {.', ••,4.;'�=:��,'`J':iy"yy'i$t"i�' :3w�a tt/� ++F± 7 /� y, #'�+Ll.G l4..:�•.i•i•t� .t• ���d'.a'3i#,'��ri.:i"'i-?i�•�<'. ' 1`:'('N, :"K':'!`t,'"?:sK'17. y.l�'• �Jy',� �lQ �i,1 t% WHsrY T S Ca`/� S; •,� X1aft1:.r'.'�'4:.,, t fir. 'l.• �: 11�Y .`:+z7t5,7'0' !'.4�!.Yf - .Ifl:: GL.:. p'4'.'-.:�.,`.•f�'.:� j,'+�_'_,� .`� ��w•�' 'xo� -�, .;�,, r x^4e �,r�M1 .;s+3's.�t',y'}:•'cr� .�:i! 2 }., a•'Yr $ z �;?g "�'"''`•2r '�' ti G r 141 Statement ot:Income.and.Expenditures-Revenues Fiscal Year Project Area Name Grand Terrace Project Area Low/Moderate Special Capital Project Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total Tax Increment Gross 7154 203 1 788 550 %• "•}_ $8 942 753 (Include All Apportionments) Special Supplemental Subvention $0 Property Assessments — — A- S0 , Sales and Use Tax J Transient Occupancy Tax $0 i Interest Income 2,9691 139,685 1 17,604 $160,258 Rental Income 52,061 19,5391 $71,600 ` Lease Income — $0 Sale of Real Estate —�__ ------r so Gain on Land Held for Resale I •____ 0 -; Federal Grants — P so Grants from Other Agencies I ! $0 Bond Administrative Fees $0 Other Revenues 35,700 $35,700 Total Revenues $90c730 $7,283,888 $1,825,693___ . ... Statement of Income and.Expenditures-Revenues Page 1 12/17/2009 Ln V ^ �Yf e A t: 'c'FQf,T �I'. ii:' O "Grihil ertirace,, unit ye{ m �i a ,3 : !. yY:; ,:u,.}� -V%.Y P .f', f: �r. F'.}/•';4 SW5 1: }SN+ i ..Sl•'�.-d:M1Ylf?^c:S f fig; •t;4:"a; ram" �s.� �_. nc�� � "ORy -ham Statement of income and Expenditures-Expenditures Fiscal Year 009 i Project Area Name lGrand Terrace Proiect Area — —J Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenua/Other Total - 223,467 521,836 $745,303 Administration Costs _-- ._. ---- 48,286 10,250 $58,546 Professional Services - SO Planning,Survey,and Design SO ., Real Estate Purchases $62,484 Acquisition Expense 62,484 ---�- - - —� Operation of Acquired Property 2-,76-6 2.766 I - Relocation Costs - $0 Relocation Payments -- I SO Site Clearance Costs — — - 2 554,317 $2,702,239 Project Improvement/Construction Costs 147.91221 -'------- $0 Disposal Costs - - Loss on Disposition of Land Held for _ _ $0 Resale Statement of Income and Expenditures-Expenditures �e 1 1e'; -'-.709 U1 l — / l I urei Aedevefo trnent: enc ,;. .frThe.; t :rat !.. {ram • SJ IiL•\1.:.i.3-f:L.a2:��1�nv'i4Y'w�.J�..i'fn Ftft-�?.YL'i.. INS Statement mL9;�4 t:C:ua'F(Y.f y T•�.. -f.l� :(G•.E,. �✓..'�`J' .. it,vRaSec�rrrfi#nl,z .o�? _ '- ++ '^h.dd>,_,•�l7y` .n2My�;...s•,•-o,�.� :o..Z�a,r'�,5"-I:"^_I ?°PyS4•' �'7t 'r r ^r �a•.'t r;:a - - .^3;::ai.'s::'c�+,,.;.�: ,:ir>i.i:F::? `•l'�v 'Lt;v .3"'��•t"�,vR .. >'.X 1 �.•"Y.h.i ,�V ��.. R;" v•'�.. 9:....�!rfpi-. (.Vf)•-:.v - ..Y�.:: '"+.�",. "hT''"'•rrf':;'.C(nyn,. '"�'=r+r;Jvj''.�.`�a-wiL. �y.,t�!r. ��,..� ?k171; r � � 1`I r A�1•ti.`J`�>.;y -� ;�:<> �::��-:���ede, ;by. �g .e ,� '�;�`•.� c#t n o:;�tE�•m�•�;,::;�.;:::�r.� ft<; - "•� - �. Statement of Income and Expenditures-Expenditures Fiscal Year rpOg Project Area Name Grand Terrace Proiect Area Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Decline in Value of Land Held for Resale F --( — $0 Rehabilitation Costs �— 1,276 $1 276 Rehabilitation Grants $0 Interest Expense —221 684,234 $_684,455 Fixed Asset Acquisitions —� $0 Subsidies to Low and Moderate Income $0 Housing Debt Issuance Costs _ - $0 Other Expenditures Including Pass- 2,341,265 107,977 $2,449,242 Through Payment(s) — " — Debt Principal Payments: Tax Allocation Bonds and Notes 1,565,000 �— $1,565,000 Revenue Bunds,Certificates of 135,000 $135 000 Participation,Financing Authority - -- ..-• Bonds City/County Advances and Loans I $0 All Other Long-Term Debt r 10,972 _ $10,972 Total Expenditures $493,362 $4,725,499 $3,198;422 $0 $8,417,283 Excess(Deficiency)Revenues over ($402,632f S?,568.389 ($1,372,729� -- $0 $ (under)Expenditures -- - -_ .,_.-.___..3,028 Statement of Income and Expenditures-Expenditures Page 2 12/17/2009 U1 LO Rd LAC e v d1l ya k 'jil ikiT ''i' 'sO' "fit. statement-of income and Expenditures-Other Financing Sources Fiscal Year Project Area Name Grand Terrace Project Area Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total $0 Ptuceeds of Long-Term Debt Proceeds of Refunding Bonds Lj— Payment to Refunded Bond Escrow Agent Advances from CityiCounty F--.2-67762-2f 7==== Sale of Fixed Assets Miscellaneous Financing Sources(Uses) -169,102 -169,140 :9:4 F-1,754 2r- Operating Transfers In ...... :.: _ I Tax Increment Transfers In 1.140,717 613,577 Operating Transfers Out $0 1 Tax Increment Transfers Out (To the Low and Moderate income Housing Fund) $o �§�49,6115) Total Other Financing Sources(Uses) Statement of income and Expenditures-Otheffinancing Sources Page 1 2/17/2009 r ry..A<: •E;. evel�ip. eitj<t el>t� Qf.sl°h _�C'�' O Cra d T rr w 4r.s:rc'.E6�tb.#9w�dE+3i3i }cs3. TCrs�it$k 'ta ' r�n.�., �F P;;+- � x� ,P. aCQ. a -�. `' " ,t ::•• ' ii�� c%•':+;fl�''3.'� ..did},�° ;i,: r�+:t"-r,'«,;:^.:;=' •:a.f,; ..yh - "�. _�a;, $✓:%y�ti^:1�•.r':t!:+d.'4 tia'��,t�..`i.' •� ��.'. nL'r... :.e' �,-;a; -�. v_.;� ,tom y• p ;�;;::..':...• :�x;;,•::a••_-;. Statement of Income and Expenditures-Other Financing Sources Fiscal Year 009 Project Area Name Grand Terrace Project Area Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Excess(Deficiency)of Revenues and $914,938 $1,258 532 $2,330,058 Other Financing Sources over - """'- " " "�� -' (----_�_�_ __. $0 ($156,588) . Expenditures and Other Financing Uses _ Equity,Beginning of Period $2 820,343 $12,648,1 i5 $5 501,490 $0 $20,769,948 Prior Period Adjustments $0 Residual Equity Transfers $0 Equity,End of Period ^$3,535�281 $13,906,647„ $3,171,432 _ $0 $20,813,360 Statement of Income and Expenditures-Other Financing Sources page 2 12/17/2009 }�� .Tt e;Cl „Grand;Terrace:,:,;i:. u�',: k.. `�''� .,f a• tYtt�..., `�R �n]'S" ..4+ � � �` 5'i+a- tia:i_`.e3:�.<J •:3•.Y,��,� l ..�,S,:y:^`'':�`,T.^al;:.- '.: iL. 'i:i�i. _in•' '�Fiu"ks..i •�. -ti+ vr�•1!1f2:'cr, :nr•� `t'�:' .'r.` .�i';Gyt'1r •„�'.� "`3"w, � .sl..= .:..1;,7�"rr;;�'Y.d. "+�•..a,.. .�i, •9<- .x.-'."- .?��.7M�iyk.t. � •„3`:. ...a - { .���.,•i, S.'��t:��L�'Y..L<, ""`�.••r_ - M;Fj'..r r�. �,,:�r;� krM1 °:Y:.0 3:w; �f•,:rt_.� ..... ,;a:.::�,.%a.i. '�t" r, 1•,'"- �'"g; "�d'L• v'�:• � ,,, a a �•#_..,• fi �A� -zr�� d,�"�=r:�. ;1::, :a: -tom,. _ 'pr'>,��'.f,.'�'!y' ',�, C 5'�i�Yr;a: '3a •�, du ,.�C. �t�+.�; •"' rr;'r,,.�z�*�_�'-��t»'' d^ ,�i"rt ?'s,'...r{e'.,.. ''dY ';.,�, :.k,. }....• .:• ;?�t4.'t��^`•75 •?, '�.� �i� �^. 'j`51�:''K'� ;�c`'�cTf."i �+an 1 � .1`�":. � ..f.� - �c a �,3 r� a�•,_ c` _- �'", .Y� ,�. •,5? :.Gi '. 'l`. E`.i �d°' T� ..' ':'..it h v� i. ,n. ^�1 �y t.•�a..t{ , �r,5 � .:`n r�>;. �'i.,�a�•t 4.,��... :Kr '^�'�,.ri�; �,�"ol�' ,vR� d -..4a- tn„A�:. � "� ��Ve.s•Fl� .Q 'Cl:* '�.�,%�ti t;i`,_,: i:F, 'fit a4"' ,'�:':,'t`2��,;;,�-1: .,��n.1,�'Y.•'�Y�41'��t� •:��,..Y<2,yz1 +. r� ,�M i� �' i .-s•- - 1 Balance-Sheet-Masts and.Other-Debits Low/Moderate Special Capital Projects Debt Service Income Housing Revenue/Other General Long General AsseFixed Fiscal Year 2009 Total Funds Funds Funds Funds Assets and Other Debits 668 182 8 813 453r-- 1,625,13151 a'd„a ;•.;.::Y ,`:::-': ::u; 'F.:.�.. $11,1Q7,450 Cash and Imprest Cashr , 1 300 546I � ��' ;':•F4�yt. . �+^o,s"��tar�,ys?�,4 n� 51,300,546 Cash with Fiscal Agent _-_ _ Tax Increments Receivable ----. ,.5,187,485 Accounts Receivable T 4,474,0661 713,419T :;mow.�,,:,:,�'c.'+ :4acr . . , ;�:'•: , :,+1i;, '.5= � -- — - —24,846 5.800 R ;?y;„�'^ +_ ��,...f �1 •�., $31,090 Accrued Interest Receivable 444 a. { --- I ---- 111.928 i�i.,, ..h*R. -::.v z:.�:�•_ k ",:k Ff a t.� $_111,928 Loans Receivable $0 Contracts Receivable $0 Lease Payments Receivable tiv-,-7�2^npL✓„ �YY'l�3jF}2r�rS�I $0 Unearned Finance Charge , $0 Due from Capital Projects Fund �—— Due from Debt Service Fund _ c�,�..,;1 a.�t nL�c•� �;i`,.�,l�D:i:i;'T s�`:Y;':� :: :'�".j ,`�U , Due from Low/Moderate Income Housing Fund Due from Special Revenue/Other Funds Balance Sheet-Assets and Other Debits Page 1 12/17/2009 • � R :9 ; �t. m` i <R e e QP e.t¢' �f'.The; O= ra Te r> . �#Na t�: grace -:.�.s' .A:;;".i;;" ..i"a{�1'�i�sx 4. .f'.{.t2•+ '•'�`.F .� '� +..s,�� +a�.Y` .�f• � '',4 l��•,R-. S b�, fie... .n Ste•-. c;, F �. ,5 ,.. :`.:;:,MAW rdd^Y!�', tc"r .,#�,t'°�' tak,"`'��:cas:,,.".Y h. 4,;_::'r.f',.� •::q�t�:yt',. - :V%5•;%AY^ "S � � ."+ -�. ,t+$'a 5•a�#� .;«�m, i F i4.: -i�rs �, '�„�.�.�.d{:gy�'>i'iY;• �y:; �Q yam ! 6 v w, �, r��` ..>i Jr•,:R. 3.y '.o,.,,��•h � -`r;,`i `� - Balance-Sheet-.Assets-and Other Debits Low/Moderate Special Fiscal Year 2009 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Investments - I-----� -— -•,.--- -�_--- -- I .p0 Other Assets A ------ -—I - '----- 341685 3"xKtk '��++bit= h�2sra { ' ems`"'r1�"� s $341 685 Investments;Land Held for 3,246,225 "` " 9i 640 166 Resale ; '" c9 uaa�o� Allowance for Decline In ,,•j;,i''^;,t° r ; ----- Value of Land Held for Resale --- '--- 3^- "�'�`" i�-r': �";'��';"•:;�"i �*�r`: _ .- .-. Fixed Assets:Land, - •�:Io�. u'y't::'a:-�.•.aT:;�si'L'Y'`�;5- :<Tr*':Y, ^r�•e':,z:yrl�l(-,�J,'t tr:: :.• Structures,and Improvements - .- ' Equipment Amount Available In Debt — Service Fund z'-sr *•-,. rt $n Amount to be Provided for {• ::,• i7:. :,:_,,; ;k_ <,;: ,,; •, - Payment of Long-Tenn Debt Total Assets and Other $3,914,851 $i4,612,911 $3,438,813 Debits $0 $9717622 ,187 (Must Equal Total Liabilities, Other Credits,and Equities) Balance Sheet-Assets and Other Debits Page 2 12/17/2009 t71 W :,Cra�d:TeIrrp r, :,,,%r:;''i ;''>�O lYllir '- @ eV�� en 3"', f -s,, i�4 I.J,L ds'„se,,,. n,e. - S 'T� ? h4S."`+�.'F'Y�•,,.,F^:.Y$iT .;s�;r";,C.'_'"t'.r:nF�l,:.'jr'''.,•'".•• ...1.,.+a.'•. ..�. � x zsr.,x- -�. .il'. 1"'3�Y`r'.' r.c..,�,rtktw.. ..e: •�.z .�'.'•..:,. �':�t:, ;.:;.,'fx a::,s,.0 t:;•'r{ `.� �:ti- A4i`v,`y'n,'.'1•`.'�.'r'�.,ii7. 't q, i" vf'u :'-,.2'r:•�R`Y".t.=;'v�r 'k +`•('i�.:rC:' .7 v�i','+...••, Y.. r,'iT� �'` Q ® /� Y: t - ,11-..-t%'1 .t• ., r,: `.'k�G !. 1 �,L M,.'-S."i %"`.,_; 1 ,�,y'v��, �:;:�i•�:+G,';���R';' `�'.� ,r �.,,� , . - a, ,t��,. ,"�e% .g _!,N Balance Sheet-Liabilities and Other Credits Low/Moderate Special Fiscal Year 2009 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Liabilities and Other Credits __ ___ L 528 155,453 {i' :*�; : ' h, ;: $442,929 Accounts Payable 111948 175, ---- R;� ---.- Interest Payable ....,. .. : :{;�•�.a-'�:?_ "_•r"f`�''>t,fix?,: Tax Anticipation Notes Payable $0 Loans Payable ___"--_ 530.736 „` +" yc ,:. '� " ate, 267,622 111,928 ;„v�?`v�<�,:�€"y`,;; 'a;,�Y,,•�,...;.�;;.e-. :.. $910,286 Other Liabilities _ S�,s,„�;�` L+- 'a i°irr?�t,'�,.'T�`„vu's• ^y„5n. Due to Capital Projects Fund Due to Debt Service Fund Due to Low/Moderate Income Housing Fund _ so _--__— Due to Special Revenue/Other Funds —.- - Tax Allocation Bonds Payable ;+-,:,:n�;.�. ,N:_ ,',. ,::G';z h+ `;:;s" ; X; --- --- - '- - . ._.6.930,OVV '.p'H�.:ifsaT„�}::S"IgR'6:•'•'' 1 �' + -h 8� F+a¢, R.y1'r'��• +'^tiivv..nvT'tyf'.T'�'• i�` iav;f" 25206(]� `i;.jC'�:..'.Fr+:I.y'-y;��l,�•i�.71`,,::•' $2520000 Lease Revenue,Certificates �a ?�� 1 �t x 4 t ��a xr$ ' of Participation Payable, Financing Authority Bonds - - --- ;r.:;,%•f•ql: _ 267,622 a'Y'. ::irr:iiz <... $267,622 All Other Long-Term Debt It �" Total Liabilities and Other $379,570 $70fi 264 5267 381 $0 $9,717,622 -Lb ;.` Credits _-.._ _. ..._..._._..._...._ Balance Sheet-Liabilities and Other Credits Page 1 12/17/2009 C71 F_, d. g ",4: ' `'a`Color .., � b� � Thy=iCaceti. _ .L := ass,.. � iz�._. 13'1 >.•''3F<'i `"1:�,r•:aii '.,::;t:.ia.uaa..w...��..._.w..u....aa.. .. �d,M xr'• ,�. i'P�t, :�Y_ y:•• .Fit"q. yj i.V ;�M=:iy k.� S.1 ��> v. AS� �; �;xk� ;tt.�•.,9c;t; - 'w, n - •.sr;g5 - - y:zp': .Lyh ' •� 'z'`'•�' [c'ii.•#�a' $•. ." .' yy r!}•'•;�^.i 'ln'Q?F,;'uti�'v;.,17C';>cric=:'•�:,ty—'` .`k:C•:t�h ..... rr7!' . ;� •d r � b .aT',"�ry. fir_ �'*,•.:.jx`,. .f.' ,. ,�.,�`,:_. �. ��5��� `'' ''�i�r4C�t..'ji• '�- r �c'a.�.'x"kpa ,i::r:,3 r,t`•.�>,','.�.'�,`• .' .Balance Sheet-Llabilities'.and Other Credits Low/Moderate Special Fiscal Year 2009 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Equities Investment In General Fixed �r��w ��� °+ i -, Assets �' Ka wy.{j'4 e(.F•�il�R.�N'I...:35{oii' SR.4�n11k3.�K{".'4 'tf�3�' 3,'4 ` �0 Fund Balance Reserved 3.392,983 5,607,699 1,653,7791 Fund Balance — Unreserved-Designated :, ' ,.,..,:`tip $u Fund Balance 8,298,948 51 ��`$q 95R 899 142,298 1 �R.f..:_ _3 - Unreserved-Undesignated — -- 7653 k s wisx� • t Total Equities $3,535,281 $13,906,647 $3,171,432 - = : - ;•: •- $0 $20,613,360 $0 Total Liabilities, Other Credits, and Equities _$3,914,851 $14,612,911 $0 $9,717,622 _ $3,438,813 $0 $31,684,197 Balance Sheet-Liabilities and Other Credits Page'2 12/17/2009 01 U7 All i<, FU"' `•f� F,'R' .� .. ri`.q., "'�..,' (t a�tY ?7i"'F"''', �' ;vt�n..�; T,w,,') . 'a. ":'i':�' r]� vy�; (�{{r`� 1�A/Fy�-�/ rk. a.;, r fi c•n. �v c �,�Y�„� d'a' ,�gus.;' n `'��+:•c�n.�'G�t4�.r''1��. .f�� ,�.Yy�,l''l�`��^11��;'Lf�:{Jyv`C1i`�1.� �-n.y������.'C,•d�5Ai1�aR:.liY fY�`IE:'y,� .`,. � �!]'�,s • ^ l c� Y - :.: _�ri:' •,4,y,,<i;¢'�k'""v ryp.,S,a :�:._:1 a,bg' 6E. .. iT`ii{{`C-•rF:?.4;':(a "`;•..na�+^.<'+: _ ..i,, z,,; :/,�t_;{};... ;ti'�vi^•�'1.'. �.ri y V��. :� --�','a's4 �4f;sg::....%. �'E �'�:�,''Fa-�� Statement of Income and Expenditures- Summary,Combined Transfers.in/Out — Fiscal Year 2009 Operating Transfers In $1�754,294 Tax Increment Transfers In $0. Operating Transfers Out $1,7�54,294 Tax Increment Transfers Out so.-1 Statement of Income and Expenditures- Summary, Page 1 12/17/2009 Combined Transfers In/Out O! CALII-ORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT RLDEVELOPMENI'AGENCY ANNUAL HOUSING ACTIVITY REPORI' FY ENDING: June / 30 /2009 Agency Name and Address: County of Jurisdiction: Community Redevelopment Agency of the City of Grand Terrace San Bernardino 22759 Burton Road Grand ferruce.CA 92313-5295 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. I. 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 reporting Year). ONLY COMPLETE ITEM 7. ❑ Dismantled(Agency adopted an ordinance and dissolved itself before start of reporting year). ONLY COMPLETE ITEM 7. 2. During reporting Year,how many adopted proiect areas existed? _1_ Of these,how many were merged during year? _0_ if the agency has one or more adopted proiect areas complete SCHEDULE HCD-A for each proiect area. If the agency has no adopted proiect areas DO NO'l'complete SCHEDULE HCD-A(refer to next question). 3. Within an area outside of any adopted project area(s):(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 afYordable 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 question). 4. Did the agency's Low&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 proiect area and/or assisted by the agency outside a project area"- ® Yes. Complete all applicable HCD SCHEDULES D1-D7 for each housing proiect completed and HCD SCHEDULE E. ❑ No. DO NOT complete HCD SCHEDULES DI-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 D1-137,and E are attached. ❑ B. On-line(h11p:/-ivivw.hcdca.gov/rda/)"Lock Report"date: . HCD SCHEDULES not required. (lock date is shown under "Admin"Area and"Report Change History') 7. l'o the best of my knowledge: (a)the representations made above and(b)agenc infor Lion reported are correct. Date Signature of Authorized'Agency Representative /Y/4fVG '0/2agG 702 •Title C9o2) LY30-2 2 /4 Telephone Number • IF NOT REQUIRED TO REPORT,SUBMIT ONLYA PAPER COPY OF TH1S PAGE. • IF REQUIRED TO REPORT,A,ND REPORTING BY USING PAPER FORAIS(IN PLACE OF REPORTING ON-LINE),SUBMIT PHIS PAGE AND ALL APPLIC-4 BLE HCD FORMS(SCHEDULES A-E)WITH A COPY OF AGENCY'S A UDIT. • IF REPORTING ON-LINE,PRIrNT AND SUBUNIT"CONFIRMATION LETTER"UPON LOCKING REPORT • .11,91L A COPY OF(a)CONFIRMATION LETTER(IF HCD REPORT WAS ELECTRONICALLY FILED)OR(b)COMPLETED FORMS AND(c•)AUDIT REPORT TO BOTH HCD AND THE SCO_ Department of Housing&c Community Development The State Controller Division of Housing Policy Division ofAc•counting and Reporting Redevelopment Section Local Government Reporting Section 1800 3"t.Street,.Suite 430 3301 C Street. Suite 500 Sacramento,C4 95814 Sacramento,Ca 95816 Redevelopment Agency Annual Report-Fiscal Year 2009-2009 IIC U-Corer Co%er(7/IN09) page I of I 6e Agency Name: C'RA of the City of(;rand Terrace. Project Area Name:Grand"Terrace Comm.Redevelopment Project Area SCHEDULE HCD-A Inside Project Area Activity for Fiscal Year that Ended 06/3012009 \gency Name:CRA of the City of Grand Terrace Project Area Name:Grand Terrace Comm Redevelopment Project Area Preparer's Name, I'itle:Ladunni Ososami.RSG Inc. Preparer's E-Mail Address:lososami•acwebrsg.com Preparer's Telephone No:714-3 16 2113 Preparer's Facsimile No: 714-541-1 175 I. Project Area Information GENERAL INFORMATION a. 1. Year I"plan for project area was adopted: 1979 2. Year that plan was last amended(if applicable): 2004 3. Was plan amended after 2001 to extend time limits per Senate Bill 211 (Chapter 741,Statutes of2001)? Yes X No 4. Current expiration of plan: 07 / 15 /2017 mo day yr b. If project area name has changed,give previous name(s)or number: e. Year(s)of any mergers of the project area: 1981 . Identity termer project areas that merged: d. Year(s)project area plan was amended involving real property that either: (1) Added property to plan: (2) Removed property from plan: 2. Attordable Housing Replacement and/or Inclusionary or Production Requirements(Section 33413). Pre-1976 proiect 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 proiec,t areas: Both replacement and inclusionary or production requirements of Section 33413 apply. NOTE: Amounts to report on HCD-A lines 3a(I),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 HCU a Line 3e(3)when reporting debt service expenditures on HCD-C Line 4c C:ihliornia Redevelopment Agencies-hiscal Year 20018-2009 Srh •\17;I;u9l f ICD-A Page I of'6 69 Agency Name: CRA ot'the City ot'Grand Terrace Project Area Name:Gland Terrace Comm.Redevelopment Project Area Other Sources: Nun GAAP(Generally Acceptable Accounting Principles)revenues such as t'rom land sales for these agencies using the Land Held for Resale method to record land sales should be reported on HCU-A Line d. I lowing fund receipts tier the repayment of loan principal should be included on IICD-A Line A t Aitonua Kcdoelopment Agencies-I fiscal Y--ar'_1t18-2I)Uy FICI)-A Nch A(7/1,09) Page 2 of 6 �d agency Name: C'RA ofthe City or(irand 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 lunds 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.(ofthis Schedule A). if this_Project area is named as beneticiary in the authorizing resolution. Any other revenue Sources not reported on lines 3a.-3r.,should also be reported on Line 3j. Enter on Line 3a(I)the full 100%of gross Tax Increment allocated prior to applicable pass through of funds and deductions lur tees(refer to Sections 33401.33446,&33676). Compute the required minimum percentage(%)orgross Tax Increment and enter the amount on Line 3a(2)(A)or 3a(2)(B). Next,report the amount ofTax Increment set-aside befitre any exemption and/or deferral Ofamount set-aside is less than required minimum(%) explain the dillerenc,e). Ifany amount of 'l ax Increment%vas exempted or deterred,in addition to completing lines 3a 4 and/or 3a(5),com lete Line 4 and/or Line 5. I'o determine the amount of I'ax Increment deposited to the Housing Fund[Line 3a(6)1,subtract allo%vable amounts exempted[Line 3a(4)]or deterred[Line 3a(5)] from the actual amount allocated to the Housing Fund[Line 3a(3)]. a. Tax Increment: (1) 100%or Gross Allocation: $ 8.I42.753 (2) Calculate only I set-aside amount: either A or B below: (A) 20%required by 33334.2 (Line 3a(1)x 20%): $ 1,788.550 (B) 30%required by 33333.10(g)(Line 3a(1)x 30%): $ (Senate Bill 211.Chapter 741.Statutes or2001) (3) Amount of set-aside(Line 3a(2))allocated to Housing Fund $ 1,788,550 * If.pursuant to Section 33334.3(i),less than the minimum%of Gross Tax Increment(see 3a(2)above)is being allocated from this project area,identify the project area(s)contributing the difference. Explain any other reason(s): (4) Amount Exempted[l lealth&Safety Code Section 33334.2] or there is an amount exempted,also complete question#4,next page): ($ ) (5) Amount Deferred [Health&Safety Code Section 33334.61 (if there is an amount deferred,also complete question#5,next page): ($ ) (6) I'otal deposit to the Housing Fund [result of Line 3a(3)through 3a(5)1: $ 1,788 550 b. Interest Income: $ 17,604 c. Rental/Lease Income(combine amounts separately reported to the SC'O): $ d. Sale of Real Estate: $ 19.539 e. Grants(combine amounts separately reported to the SC O): $ r. Bond Administrative Fees: $ g. Deferral Repayments(also complete Line 5c(2)on the next page): $ h. Loan Repayments: $ i. Debt Proceeds: $ j Other Revenue(s)[Explain and identify amount(s)J: S S S S k. 1 otal Prefect Area Receipts Deposited to I lousing Fund(add lines 3a(6) through 3j.): S 1,825.693 t ahlorma Redevelopment \gencie;-Ducal Year 20o8 -Uo9 1rh A 17;1,uQ) 11CD-A Page 3 of 6 \eencv Name: CRA oI'the City oI*Grand'I errace Project Area Nume:Grand 1'errace COMM. Redevelopment Project Area Eremption(s) 4. a. 1 f an exemption was claimed on Page 2.Line 3a(4)to deposit less than the required amount,complete the following information: Check only one of the I lealth and Safety Code Sections below(Note: An Annual Findiny_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. Vote: 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): b. For any exemption claimed on Page 2,Line 3a(4)and/or Line 4a 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: / 1 mo day yr mo day yr Deferral(s) 5. a. Specify the authority for deferring any set-aside on Line 3a(5). Check only one Health and Safety Code Section boxes: ❑ Section 33334.6(d): Applicable to projeet 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: Specify code Section and reason: b. For any deferral claimed on Page 2,Line 3a(5)and/or Line 5a above,identity: Date that initial(V)finding was adopted: / / Resolution# _ Date sent to HCD: I / mo day yr mo day yr Adoption date of reporting year finding: / / Resolution# Date sent to HCD: mo day yr mo day yr c. A deferred set-aside pursuant to Section 33334.6(d)constitutes indebtedness to the Housing Fund. Summarize the amount(s) of set-aside deferred over the reporting year and cumulatively as of the end of the reporting year: Amount of Prior Cumulative Amount Amount Deferred Deferrals Repaid Deferred(Netof'Any Fiscal Year Phis Reporting FY During Reporting FY Amount(s) Repaid) `m... (1) Last Reporting FY ; (2) I his Reporting FY S $ $ * 1'he Cumulative amount of deferred set-aside should also be shown on t1CD-C, Line Nu. If the prior FY cumulative deferral shown above differs from%%hut was reported on the last HCD report(HCD-A and HCD-Q.indicate the amount of difference and the reason: Difference: S _. Reason(s): — ----- C:,lilunna RedevvIopment•\eencics-1'NL31 Year'-OUS-'_O(19 1 IC D-A �rh \(7,1109) Page 4of 6 Agency Name: CRA of the City of Grand Terrace Project Area Name:Grand Terrace Comm. Redevelopment Project Area Deferritl s (continued) 5. d. 'Section 33334.6(g)requires any agency which defers set-asides to adopt'a plan to eliminate the deficit in subsequent years. f this agency has deterred set-asides,has it adopted such a plan? Yes ❑ No❑ If yes,by�ehut date is the deficit to be eliminated? mo day yr lfyes,when was the original plan adopted f'or the claimed deferral? mo day yr Identity Resolution 9 Date Resolution sent to HCD r^ 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 Reoortine Year 6. a. Redevelopment Project Activity. Pursuant to Sections 33080.4(a)(I)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 ear,(refer to Section 33413 for unit and bedroom replacement requirements). Project Activity Number of Households/Units/Bedrooms VL L M AM Total Households Permanently Displaced-ElderlyNbeReplaced 0 0 0 0 0 Households Permanently Displaced-Non Elde0 0 0 0 0 Households Permanently Displaced-Total0 0 0 0 0 Units Lost(Removed or Destroyed)and Requirced 0 0 0 Bedrooms Lost(Removed or Destroyed)and Replaced 0 0`0 0 p Above Moderate Units Lost That Agency is NotplaceAbove Moderate Bedrooms Lost That Agency i to Replace 0 0 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 0 0 0 0 0 Households Permanently Displaced-Non Elderly 0 0 0 0 0 Households Permanently Displaced-Total 0 0 0 0 0 c. As required in Section 33413.5,identity.over the reporting Dear each replacement housing plan required to be adopted betbre 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 mu . day, y r — -- ' Date __ I i Name of Agency Custodian mo day yr --— Please attach a separate sheet of paper listing any additional housing plans adopted. ah6orma Redevelopment Agencies-I-iscal Year 2008-2009 Soh A(7i1rp9) f ICD-A Page 5 o f 6 73 + I i ;agency Name: C RA of the City otGrand Te race Project Area Name:Grand Terrace Comm.Redevelopment Project Area Fstim�ted Project Area Households to be Permanently Displaced Over Current Fiscal Year: j 7 a. As required in Section 33080.4(a)(2)for a redevelopment project of the agency,estimate,over the current fiscal 'VOL the number of elderly and nonelderly households,by income category expected to be permanently displaced. (Note:actual displacements\kill be reported for the next reporting)car on Line 6). i Number of Households l Project Activity VL L M AM Total Households Permanently Displaced- Elderly 0 0 0 0 0 ' Households Permanently Displaced- Non Elderly 0 0 0 0 0 ; Households Permanently Displaced-Total 0 0 0 0 0 ' b. As required in Section 33413.5. ror the current fiscal rear,identity 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. ,bate / / Name of Agency Custodian mo day yr' Date / / Name of Agency Custodian mo day yr Please attach a separate sheet of a er listing any additional housing plans adopted. ! I I Units Developed Inside the Project Area to Fulfill Requirements of Other Project Area(s) 8. Pursuant to Section 334 13(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 bearing 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. ! Were any dwelling units in this project area developed to partially or completely satisfy another project area's requirement to j construct new or substantially rehabilitate dwelling units? ❑ No. ❑Yes. Date initial finding was adopted? / / Resolution# Date sent to HCD:_ / mo day yr mo day ', y 4 Number of Dwe ling Units Name of Other-Project Area(s), VL L M Total i i i - i I ' I t i I { i e-jhl'ornr•{Rede%elopmenr Agencies--Fiscal Year 2008-2009 HCD-A 1 ,,:h \i7niu9 Page6-uf6� i i I I j 74 agency dame: CRA of the City of Grand"I errace Project Area Name:Grand 1'errace Comm. Redc%elopment 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)speci ties that pursuant to an adopted program,%Oich 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 salt:proceeds into the Low and Ivtoderate Income Housing Fund and within three(3)rears from the date the unit%ras sold,expend funds to make another unit equal in attordability;at the same income level,to the unit sold. a. Sales. Did the agency permit the sale ofuny owner-occupied units during the reporting year? ❑No OYes $ <-- •Total Proceeds From Sales Over Reporting Year Number of Units SALES VL L M Total Units Sold Over Reporting Year 0 1 0 0 b. Equal Units. Were reporting year funds spent to make units equal in attbrdability to units sold over the last three reporting years'? ❑No ❑Yes $ <— 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 0 0 0 0 Units Made Equal This Reporting Yr to Units Sold One Reporting Yr Ago 0 0 0 0 Units Made Equal This Reporting Yr to Units Sold Two Reporting Yrs Ago 0 0 0 0 Units Made Equal This Reporting Yr to Units Sold Three Reporting Yrs Ago 0 0 0 0 Affordable Units to be Constructed Inside the Pro'ect 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 financtxi by any federal, state,local,or private source in order ti7r construction to be completed within two years from the date of the agreement or contract executed over the reporting year. Identity the project and/or contractor,date of the executed agreement or contract,and estimated completion data. Specify the amount reported as an encumbrance on HCD-C.Line 6a.and/or any applicable amount designated on HC:D-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 rs of Col B Line 6a Line 7a VL L M Total . s s s s $ $ Please attach a separate sheet of paper to list additional intbrmation. (..ihtonuakede%elupmentA_cncieti hrvcalYear2008•2009 ',ch \(7!1-99) 11CD-A Page 7 of 6 75 SCHEDULE HCD-C Agency-wide Activity for Fiscal Year Ended 06/30/09 ,%gency Name:C'RA of the City ot'Grand I errace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Preparer's Name,Title:Ladunni Ososami,RSG Inc. Preparer's E-Nlail Address:lososamNi,%%ebrsg.com Preparer's 1'elephone No:714-316 2113 Preparer's Facsimile No: 714-541-1175 Low & Moderate Income Housing 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. I. Beginning Balance(Use"Net Resources Available"from last fiscal year report to HCD) S3.997.603 a. If Beginning 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 $ 177.484 Loans Receivable $ (28,000) b. Adjusted Beginning Balance[Beginning Balance plus+or minus—Total Adjustment(s)] $3,848,119 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) $ 1,825,693 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 1 b.+Line 2a+Line 2c.) $ 5.673.812 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. I lousing 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 principal and interest of debt proceeds deposited to the dousing Fund should be reported on the applicable item comprising. I ICD-C Line 4c.providing tar 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 Field for Resale method to record land purchases should be reported on HCD-C Line 4a(I). F unds 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 prowled for preparers to review to determine the appropriateness of Low and,Vloderate Income Housing Fund(L,VIIHF)expenditures and other uses. HCD does not represent that line items identifying uny expenditures and other uses are allowable. CRL is accessible on the Internet lwebsite. hum. %N (C'ulifornia LmOl beginning with Section.3.3000 of the Health and Safety Carle. L ahl'orma Kedevdlopment Agencies-Fi,cal N car 2007-2008 1 ICD-C ,ch C(7;P09) Page I of 10 7( fluency Name: CRA ofthe City of Grand I errace 4. Expenditures, Loans,and Other Uses a. Acquisition of Property & Building Sites 133334 2(e)(1)I&Housing 133334 2(e)(6)1: (1) Land Purchases(Investment Lund flehl for Resole) * $ (2) Housing Assets(1-1.red.-Isset) * $ (3) requisition Expense $ (4) Operation of Acquired Property $ 2,766 (5) Relocation Costs $ (6) Relocation Payments $ (7) Site Clearance Costs $ (8) Disposal Costs (9) Other]Explain and identity amount(s)j: Y QQ l .D t / $ $ $ * Reported to SCO us port of;Issets cmnd Other Debts (10) Subtotal Property/Building Sites/Housing Acquisition(Sum of Lines 1 —9) $ 2.766 b. Subsidies tom 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)J $ (4) Other]Explain and identity amount(s)]: Residual Receipts for Senior Programs $ 300,000 (5) Subtotal Subsidies from LMIHF(Sum of Lines 1 —4) $ 300.000 c. Debt Service 133334 2(e)(9)I If paid from LMIHF,report LMIHF's share of debt service. Ifpaid 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 $ 613,577 (b) Revenue Bonds&Certificates of Participation $ (c) City/County Advances& Loans $ (d) U. S.State&Other Long—Term Debt $ (2) Interest Expense $ (3) Debt Issuance Costs $ (4) Other]Explain and identity amount($)]: (5) Subtotal Debt Service(Sum of Lines I —4) --$ 613.577 d. Planning and Administration Costs 133334 3(e)(I)I• (1) ,Administration Costs $ 515.208 (2) Professional Services(non proiect specific) $ 10.250 (3) Planning/Survey/Design(non proeect specific) $ (4) Indirect Nonprofit Costs]33334.3(e)(1)(B)] $ (5) Other[Explain and identity amount(s)]: Code Entbrcement Allocated Overhead S 36.160 County Collection Fee Allocation $ 14.219 $ S 50.379 (6) Subtotal Planning and :administration (Sum of Lines I --5) S 575 837 California Rede%elopment Agencies-h ical Year 2008-2009 ,d,C 17i1.09t HCD-C Page 2 of 10 77 \gene\, Name: CRAottheCit) ufGrand'Terrace 4. Expenditures, Loans,and Other Uses(continued) e. On/Utf-Site Improvements[33334 2(e)(2)1 Complete item 13 1'. 1 lousing,Construction [33334.2(e)(5)1 S 2.554.317 g. I lousing Rehabilitation[33334.2(e)(7)1 S 1.276 h. Maintain Supply of Mobilehome Parks 133334.2(e)(I O)l i. Preservation of At-Risk Units[33334.2(e)(I I)1 $ J. Transfers Out of Agency (1) Fur Transit pillage Development Plan(33334.19) $ (2) Excess Surplus [33334.12(a)(1)(A)l $ (3) Other(specify code section authorizing transter and amount) A. Section _ $ 13. Section S Other transfers Subtotal $ (4)Subtotal'Fransfers Out of Agency(Sum otj(1)throughj(3)) $ k. Other Expenditures, Loans,and Uses [Explain and identify amount(s)]: Code Entoreement Allocated Costs $ 107,978 S S Subtotal Other Expenditures, Loans,and Uses $ 107,978 L Total Expenditures, Loans,and Other Uses(Sum of lines 4a.-k.) S 4,155.752 5• Net Resources Available[End of Reporting Fiscal Yearl [Page I.Line 3,Total Resources minus Total Expenditures,Loans,and Other Uses on Line 4.1.1 S 1,518,061 6. Encumbrances and Unencumbered Balance a. Encumbrances. Amount of Line 5 reserved for future payment of legal contract(s) $ 408 or agreement(s). See Section 33334.12(g)(2) t'or definition. 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 I la. $ 1,517,653 7. Designated/Undesignated Amount of Available Funds a. Designated From Line 6b-Budgeted/planned to use near-term S Refer to item 10 on Sch-.4(s)and item 4 on Sch-B b. Undesignated From Line 6b-Portion not vet budgeted/planned to use S 1,505,947 8. Other Housing Fund Assets(non recurrent receivables)not included as part of Line 5 a. Indebtedness from Deferrals of Tax Increment(See.33334.6) [reter to Sch-A(s).Line 5c(2)1. $ b. Value of Land Purchased with Housing Funds and Field for Development of Affordable Housing. C omplele Sch-C item 14 S 640,166 c. Loans Receivable for Housing Activities S 713.000 d. Residual Receipt Loans(periodic/fluctuating payments) S e. E:RAF Loans Receivable(all years)(Sea 33681) S r Other Assets[Explain and identity amount(s)]: Long Fenn Advances $ 300,205 g• Total Other Housing Fund Assets(Sum of lines 8a.-t) S 1,653.371 `i• TOTAL FUND EQUITY[Line 5(Net Resources Available)+8g(I'otal Other Housing 1•und Assetsl S 3.171.432 Compare Line 9 to the below amount reported to the SCO(Balance Sheet of Redepelopment Agencies Financial Transactions Report. [Explain differences and identity amount(s)1: S $ S FN 1F.R LOW-MOD Ft ND I OPAL L•OU11 IES(BAL.\NCE SHEE F)REPORTED Y0 SCO S3.171.432 t.iliforma Rede�dopment \gcncies -Fi+cal Year'_Uo8-'-009 HCD-C. ti,:l,C(Wl,09) Pane 3 of 10 T %gency Name: CRA of the City,of'Orand Terrace Excess Surplus Information Pursuant to Section 33080.7 and Section 33334.12(g)(I),report on Excess Surplus that is required to be determined on the first day ot'a fiscal year. Excess Surplus exists\\hen the Adjusted Balance exceeds the greater of(1)S 1.000.000 or(2)the aggregate amount ortax increment deposited to the Housing Fund during the prior tour fiscal years. Section 33334.12(g)(3)(A)and(B)provide that the llnencumbered Balance can be adjusted tor: (I)any remaining revenue generated in the reporting year from unspent debt proceeds ane3 (2)if the land was disposed otduring 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)1. I•or Excess Surplus calculation purposes,carry over the prior year's HCD Schedule C Adjusted Balance as the Adjusted Balance on the first day otthe reporting fiscal year. Determine which is larger:(1)$I million or(2)the total of tax increment deposited over the prior f6ur years. Subtract the largest amount from the Adjusted Balance and,it 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 rior ears'Excess Surplus. Column I Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Sum of Tax Current Current Amount 4 Prior and Total I'ax Increment Reporting Year Reporting Year Expended/Encumbered Remaining Excess Current Increment Deposits Over I"Day I''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 Housing Fund FYs Balance Balances End of Reporting Year End of Reporting Year 4 Rpt Yrs Ago FY 03104 $ 1.079,383 P am ,' , .c, $ 331.390 $ 81,327 $ _ 3 Rpt Yrs Ago FY 04105 $ 1.232, 104 $ 533,336 _ t 'r $ 533,336 $ 2 flgt Yrs Ago FY OS/06 $ 1.292.60U :^j ► $ 487,734 $ 487,734 $ - 1 Rpt Yr Ago FY 06/07 $ 1,417,922 $ CURRENT Sum of Column 2 Last Year's Sch C Col 4 minus:larger Reporting )' Adiusted Balance of Col 3 orSlmm Year (report positive S) FY 07/08 $5.022,009 $3.990.580 I I Reporting Year Ending Unencumbered Balance and Adjusted Balance: a. Unencumbered Balance(End of Year)[Page 3.Line 6bJ $19517,653 b. Ifeligible,adjust the Unencumbered Balance for: (1) Debt Proceeds[33334.12(g)(3)(B)J: Identify unspent debt proceeds and related income remaining at end of reporting year S (2) Land Conveyance Losses[(33334.12(g)(3)(A))J: Identity reporting year losses from sales/grants/leases of land acquired with low-mod funds, it49%or more of new or rehabilitated units will be affordable to lower-income households S 12. Adjusted Balance(tor next year's determination of Excess Surplus)[Line I 1 a minus sum of 1 I b(1)and I I b(2)J $ 1,5179653 Note: Do not enter Adjusted Balance in Col 4. It is to be reported as next year's Ist day amount to determine Excess Surplus a. If there is remaining Excess Surplus from what was determined on the first day otthe reporting year,describe the agency's plan(as specified in Section 33334 10)tier transferring,encumbering,or expending excess surplus: b. If the plan described in 12a.was adopted.enter the plan adoption date: mo day �r Cahl'orma Redevelopment:\gencies-hi;cal Year 2008-2009 bch C(7/1,'N) HCD-C Page 4 of 10 79 \s)ency Name: CRA of the City otGrand I errace Miscellaneous Uses of Funds 13. Iran amount is reported in 4e..pursuant to Section 33080.4(a)(6),report the total number ofvery low-,low-,and moderate-income households that directly benefited from expenditures for onsite/ott'site 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 Low Moderate 14. I f the agency is holding land for future housing development(refer to Line 8b),summarize the acreage(round to tenths,do not report square footage)./oning,date of purchase,and the anticipated start date ror the housing development. No.of Purchase Estimated Date Site Name/Location* Acres Zoning Date Available Comments 1 1695 Canal St. 0.66 R3 05/12/2009 Unknown Ten-unit Condominium 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%%ith requirements in Section 33334.13(b)related to assistance tier very low-income households equal to twice that provided fir above moderate-income households'? Yes❑ No ❑ Not Applicable CahtLnua Redevelopment Agencies f•ucal Year2008-'-009 HCD-C tich C(7/1r09) Page 5 of 10 8j \gcncv Name: C'It;\of the City of Grand'terrace 16. Did the Agency use non-LMIHF funds as matching funds for the Federal HOME or HOPE program during the reporting period'? YES ❑ NO Ifyes.please indicate the amount of non-LMIHF funds that were used for,either HOME or HOPE:program support. HOME$-`_ 11013E$ 17. Pursuant to Section 33080.4(a)(I 1),the agency shall maintain adequate records to identify the date and amount ofall LIMIHF 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. DONOTSUBMITANYDOCUMENTS/RECORDS Has your agency made any deposits to or withdrawals from the LMIHF? Yes ® No ❑ —� Ifyes,identity 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 ofdocument(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 ofGrand'I'errace 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)Redeveloament Funds for Housing 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 runds)to construct,improve,assist,or preserve housing in the community. N/A 19. Suggestions/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 Nlonitoring Reports of PreviousIV Com leted Affordable Housing Pro'ects/Pro rams H&SC 33418 Were all Annual Monitoring Reports received for all prior years'affordable housing projects/programs? Yes ® No ❑ C ahlbrnia Redevelopment,\eencies-hiscal Year 20os-21)09 ,rh C(7/1r09) 1ICD-C' Page 6 or 10 Q1 .\ecnc% Name: C'IZ:\ofthe City ol'Crand Terrace 31 Excess Surplus Expenditure Plan(H&SC 33334.10(a) l alifunna Rede%clopment Agencies-H-wal 1 ear_nU8-'_UOy I ICD-C. I'aue 7 of 10 ',clt C IMAM ` Auencr Name: CRA ol'the City 01*Grand 1'erruce 22. 1-ootnote urea to pro,6 ide additional information. (.ahlornia Rede%clnpment•%eencles-Fiwal Year'_009-2009 }lC'LJ-C tichC 17/1i09) Page8 of,IU R� ,\L,cne\ Name: CRA otthe City of Grand I errace 23. Project •\chievement and HCD Director's Award for Housing Excellence Project achievement inflormation is optional but can serve important purposes: Agencies'achievements can intbrm others of successful redevelopment projects and provide instructive information fbr additional successful projects. Achievements may be included in I ICD's Annual Report of Housing Activities of California Redevelopment agencies to assist other local agencies in de\eloping effective and efficient programs to address local housing needs. In addition,l ICD 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\vas completed within the reporting)car as evidenced by a Certificate of Occupancy. l'he project must not have been previously reported as an achievement. 7o publish agencies' achievements in a standard format, please complete information Jor each underlined category below addressing suggested topics in a na►rative firmat that dues not exceed thvo pages (see example, next page). In culdition to submitting information with other HCD forms to the State Controller, please submit achievement iglbr►nation on a 3 5 inch diskette and identij�the sofhvare type and version. For convenience, the diskette ecru be separately mailed to. HC'D Policy Division, 1800 3"d Street, Sacramento, CA 9581.1 or data can be entailed by attuching the file and sending it to: rlevr•'n hcd.ca.grty. AGENCY INFORMATION • Project Type(Choose one of the categories below and one kind of assistance representing the primary project type): New/Additional Units(Previously Unoccupied/Uninhabitable): Existing Units(Previously Occupied) - New Construction to own - Rehabilitation orOwner-Occupied - New Construction to rent - Rehabilitation of 1'enant-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 Humes - l ransitional Housing _ - Mortgage Assistance - Other(describe) - transitional Housing - Other(describe) • Agency Name: • Agency Contact and Telephone Number ror the Project: DESCRIPTION • Project Name • Clientele served[owner,renter,income group,special need(e.g.large family or disabled),etc.j • Number and type of units and location,density,and size of project relative to other projects,etc. • Degree of affordabiIity/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,infrustructure,conversion,development.etc.) HISTORY • l'imeframe 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 ACHIEVEMEN'r • Degree of involvement with concept.design.approval. financing,construction,operation.and cost.etc. • Specific agency and/or community goals and objectives met.etc. c.ahforma Rcde\elupment•\elides-Fiscal It ear'_U08-2009 HCD-L sch c. (7,I%09) Page 9 of, 10 a.: ,Agency Name: CRA ol'the City ol'Grand Terrace .4 CHIE VE E T EEO- A11 L Z Protect Type: NEW CONSTRUCTION- OWNER OCCUPIED Redevelopment Agency Contact: Name(Area Code).Telephone# Project/Program Name: Project or Program Description During the reporting year, construction of 12 homes was completed. Enterprises, �Il which specializes in community self-help projects, was the developer, assisting 12 families in the construction of their new homes. The homes took 10 months to build. The families' work on the homes was converted into "sweat equity" valued at$15,000. The first mortgage was from CHFA. Families were also given an affordable second mortgage. The second and.third mortgage loans were funded by LMIHF and HOME funds. History The (City.or County) of struggled for several years over what to do about the area. The tried to encourage development in the-area by rezoning a large portion of the area for multi-family use, and.twice attempted to create improvement districts. None of these efforts were successful and the area continued to deteriorate, sparking growing concern among city officials and residents. At the point that the Redevelopment Agency became involved, there'-was significant ill will between the residents of the and the(City or County). The introduced the project in with discussions of how the Agency could become involved in improving the blighted residential neighborhood centering on This area is in the core area of town and was developed with disproportionately narrow,deep lots, based on a subdivision plat laid in 1950. Residents built their homes on the-street frontages of and leaving large back-lot areas that were landlocked and.unsuitable for development, having no access to either avenue. The Agency worked with 24 property owners to purchase portions of their properties. Over several years, the Agency purchased enough property to complete a tract map creating access and lots for building. Other non-profits have created an.additional twelve affordable homes. Agency Role The Agency played the central role. The Project is a classic example of successful redevelopment. All elements of blight were present: irregular, land-locked parcels without access; numerous property owners; development that lagged behind that of the surrounding municipal property; high development cost due to need for installation of street improvements, utilities, a storm drain system, and undergrounding of a flood control creek; and a low-income neighborhood in which property sale prices would not support high development costs. The Agency determined that the best development for the area would be single-family owner-occupied homes. The Agency bonded its tax increment to fund the off-site improvements. A tract map was completed providing for the installation of the street improvements, utilities, storm drainage, and the undergrounding of Creek. These improvements cost the Agency approximately $1.5 million. In lieu of using the eminent domain process, the Agency negotiated with 22 property owners to purchase portions of their property, allowing for access to the landlocked parcels. "This helped foster trust and good will during the course of the negotiations. The Project got underway once sufficient property was purchased., C.11illlrma Rede%elopment Agencies—fiscal Year 2008-2009 F IC U-(.� tich C(711/09) Page 10 0t'10 85 SCHEDULE HCD-D1 GENERAL PROJECTIPROGRAM INFORMATION For each different ProjectiProgram (area/name/aqy or nonage dev/rental or owner), complete a D1 and applicable D2-D7 Examples: 1 25 minor rehab(Nonagy Dev):Area 1: 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-Is &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-1 s, 1 D-4, & 1 D-5. Name of Redevelopment Agency: CRA of the City of Grand Terrace Identify Project Area or specify"Outside": Grand Terrace Redevelopment Project Area General Title of Housing ProjecUProgram: Market Rate New Constructed Units Project/Program Address (optional): Street• Cam: ZIP , Various Grand Terrace 92313 Owner Name(optional): Total Project/Program Units: # 12 'Restricted Units: # 0 Unrestricted Units: # 12 For projects/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 65863.10(a)(3)]? [I 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"Total Project Units) 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 # DISABLED(Physical) # FEMALE HEAD OF HOUSHOLD # ELDERLY # FARMWORKER(Migrant) # LARGE FAMILY # EMERGENCY SHELTERS t (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 da /month/ ear using digits, e.g.07/01/2002 Replacement Housing Units Inclusionary Housinci 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) ❑With LMIHF (Sch HCD-D5) ❑Outside Project Area (Sch HCD-D4) ❑Without LMIHF (Sch HCD-D6) ® No Agency Assistance (Sch HCD-D7) California Redevelopment Agencies-Fiscal Year 2008-2009 HCD-D1 I Sch DI 17;Ii0N) f SCHEDULE HCD-D7 HOUSING UNITS PROVIDED (NO AGENCY ASSISTANCE) (units not claimed on Schedule 0-2,3,4,5,6) Agency: CRA of the City of Grand Terrace Redevelopment Project Area Name, or"Outside": Grand Terrace Redevelopment Proiect Area Housing Project Name: ;VOTE: On this form,only report UNITS NOT REPORTED on,11CD-D2 through HCD-D6 for project/program units that have not received any agency assistance. Agency assistance includes either financial assistance(L,HIHF or other agency funds) or nonjinuncird assistance(design,planning,etc.)provided by agency staff. In some cases,of the total units reported on HCD D1,at portion of units in the same projectlprogram may be agency assisted(reporter/on HCD-D2 through HCD-D6) /whereas other units may be unassisted by the agency(reported on HCD-D7). The intent of this firm is to: (1)reconcile any difference between total projecbprogram units reported on HCD-DI compared to the sum of all the project's/program's units reported on HCD-D2 through HCD-D6,and(2)account for other(nunassisted) `�. housing units provided inside a Proiect area that increases the agency's inclusionary obligation. Reporting nonagenc•y assisted proiects outside a Proiect area is optiomd if units do not make-up any part oftotal«nits reported on HCD DI. HC'D-D7 Reporting Examples Example 1(reporting partial units): A new 100 unit project wits built(reported on HCD-DI,Inside or Outside a project area). Fifty(SO)units received agency assistance 130 affordable LMIHF units(reported'on either HCD-D2,D3,D4,or DS)and 20 above moderate units were funded with other agency funds(reported on HCD-D6)1. The remaining SU(privately financed and developed market-rate units)must be reported on HCD-D7 to make up the difference between 100 reported on DI and SU reporter/on D2-D6). Example 2(reporting all units): Inside a project area a condemned,historic•property was substantially rehabilitated(muld- family or single-family),funded by tax credits and other private financing without any agency assistance. Check whether Inside or Outside Project Area in completing applicable information below: ® INSIDE Project Area Enter the number for each,unit type for each applicable activity: ACTIVITY: UNIT TYPE: VLOW LOW MOD AM'OD " TOTAL New Construction Units: 12 12 Substantial Rehabilitation Units: Total Units: 12 12 If agency did not assist any part of project Various Various identify Building Permit Number and Date: BUILDING PERMIT NUMBER BUILDING PERMIT DATE ❑ OUTSIDE Project Area Enter the number for each unit type for each applicable activity: ACTIVITY: UNIT TYPE: - VLOW LOW MOD AMOD TOTAL New Construction Units: Substantial Rehabilitation Units: Total Units: If agency did not assist any part of oroiect identify Building Permit Number and Date: I BUILDING PERMIT NUMBER I EBUILEDIN�GPERM�ITDATE Check all appropriate form(s) listed below that will be used to identify remaining Project Units to be reported: ❑ Replacement Housing Units Inclusionary Units. Other Housing Units Provided. (Sch HCD-D2) ❑Inside Project Area (Sch HCD-D3 [I With LMIHF (Sch HCD-D5) ❑Outside Project Area (Sch HCD-D4) ❑Without LMIHF (Sch'HCD-D6) Calitiornia Rede%elupment Agencies-hiscal year 2007 -008 1.0 u7l7n,ust HCD-D7 R7 i 'f SCHEDULE HCD-D1 GENERAL PROJECT/PROGRAM INFORMATION I For each different Project/Program (area/name/agy or nonage dev/rental or owner), complete a D1 and applicable D2-D7 Examples: 1.25 minor rehab (Nonagy Dev):Area-1: 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-1s&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: CRA of the City of Grand Terrace Identify Project Area or specify"Outside": Grand Terrace Redevelopment Project Area General Title of Housing ProjecUProgram: Blue Mountain Senior Villas Project/Program Address (optional): 22627 Grand Terrace Rd Grand Terrace CA 92313 f Street• City: ZIP: -- Various Grand Terrace 92313 Owner Name(optional): Total Project/Program Units: # 120 Restricted Units: # 120 Unrestricted Units: # 0 For oroiects/programs with no RDA assistance do not complete any of below or any of HCD D2-D6. Only complete HCD-2D7. Was this a federally assisted multi-family rental project[Gov't Code Section 65863.10(a)(3)17 ❑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"Total Project Units) 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 # DISABLED(Physical) # FEMALE HEAD OF HOUSHOLD # ELDERLY # 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 da /month/ ear using digits,e.g.07/01/2002 : Replacement Housina Units Inclusionary Housina Units Other Housin Units Provided With LMIHF Without LMIHF Restriction Start Date 11/04/2004 Restriction End Date 11/01/2064 ; Perpetuity Funding Sources: Redevelopment Funds: $2,854,317 Federal Funds $ f 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: j ❑ Replacement Housing Units Inclusionary Units: Other Housing Units Provided:, (Sch HCD-D2) ® Inside Project Area (Sch HCD-03) ❑With LMIHF (Sch HGD-D5) ❑Outside Project Area (Sch HCD-D4) ❑Without LMIHF (Sch HCD-D6) ❑ No Agency Assistance (Scli HC 4 D-D7) California Redevelopment Agencies-Fiscal Year 2008-2009 - HCD-D1 , Sch DI 1711i09) 8E SCHEDULE HCD-D3 INCLUSIONARY HOUSING UNITS (INSIDE PROJECT AREA) (units not claimed on Schedule D-4,5,6,7) (units with required affordability restrictions that agency or community controls) Agency: CRA of the Citv of Grand Terrace Redevelopment Project Area Name: Grand Terrace Redevelopment Project Area Affordable Housing Project Name: .Blue Mountain Senior Villas Check only one. If both apply, complete a separate form for each(with another Sch-D1): ❑ Agency Developed ® Non-Agency Developed Check only one. If both apply, complete a separate form for each (with another Sch-D1): ® Rental ❑ Owner-Occupied Enter the number of units for each applicable activity below: Note: "INELG"refers to a household that is no longer eligible but still a temporary resident and part of the-total A. New Construction Units: Elderly units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG. VLOW LOW MOD TOTAL INELG. VLOW LOW MOD TOTAL INELG. 55 1 53 1 12 120 55 1 53 12 120 Of Total, identify the number aggregated from other project areas (see HCD-A(s), Item 8): B Substantial Rehabilitation (Post-'93/AB 1290 Definition of Value>25%: Credit for Obligations Since 19941: Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG. VLOW LOW MOD TOTAL INELG'. VLOW LOW MOD TOTAL INELG. Of Total, identify the number aggregated from other project areas(see HCD-A(s), Item 8): C Acquisition of Covenants (Post-'93/AB 1290 Reform: Only Multi Family Vlow& Low&Other Restrictions): Elderly units Non Elderly units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG. VLOW LOW MOD TOTAL INELG. VLOW LOW MOD TOTAL INELG. TOTAL UNITS(Add only TOTAL of all"TOTAL Elderly/Non Elderly Units-): 120 If TOTAL UfVITS is less darn "Totdl Project Units"on HCD Schedule DI,report the remaining units as instructed below. Check all appropriate form(s)listed below that will be used to identify remaining Project Units to be reported: ❑ Replacement Housing Units ❑ Inclusionary Units (Outside Project Area) Other Housing Units Provided: (Sch HCD-D2) (Sch HCD-D4) ❑With LMIHF(Sch HCD-D5) El Without LMIHF (Sch HCD-D6) ❑ No Assistance (Sch HCD-07) Identify the number of Inclusionary Units which also have'been counted as Replacement Units: Elderly Units Non Elderly.Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG. VLOW LOW MOD TOTAL INELG. VLOW LOW MOD TOTAL INELG. California Redevelopment Agencies-Fiscal Year 2008-2009 Sch u3(7n109) HCD-D3 89 i SCHEDULE HCD-E CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION BASED ON SPECIFIED HOUSING ACTIVITY DURING THE REPORTING YEAR Agency: CRA of the City of Grand Terrace Name of Project or Area (if applicable,,list"Outside" or"Summary": Summary Complete this form to report activity separately by project or area or to summarize activity for the year. Report all new construction and/or substantial rehabilitation units from Forms D2 through D7 that were: (a) developed by the agency and/or(b) developed only in a project area by a nonagency person or entity. PART I (H&SC Section 33413(b)(1)i AGENCY DEVELOPED UNITS DURING THE REPORTING YEAR BOTH INSIDE AND OUTSIDE OF A PROJECT AREA ' I. New Units Developed by the Agency 2. Substantially Rehabilitated Units Developed by the Agency 0 3. Subtotal - Baseline of Agency Developed Units(add lines I &2) 0 4. Subtotal of Increased lnclusionary Obligation (Line 3 x 30%) (.see Notes 1 and 2 below) 5. Very-Low lnclusionary Obligation Increase Units (Line 4 x 50%) 0 PART Il (H&SC Section 33413(b)(2)1 NONAGENCY DEVELOPED UNITS DURING THE REPORTING YEAR ONLY INSIDE A PROJECT AREA 6. New Units Developed by Any Nona�ency Person or Entity 132 7. Substantially Rehabilitated Units Developed by Any Nona ei; ncy Person or Entity 0 8. Subtotal.- Baseline of Nonamency Developed Units(add lines 6 & 7) 132 9. Subtotal of Increased lnclusionary Obligation (Line 8 x 15%) (see Notes 1 and 2 below) 20 10. Very-Low lnclusionary Obligation Increase (Line 9 x 40%) ;8 PART III REPORTING YEAR TOTALS 11. Total Increase in lnclusionary Obligation (add Fines 4 and 9) 20 12. Very-Low lnclusionary Obligation Increase (add line 5 and 10) (Line 12 is a subset of Line 11) ;$ •rrrr►•rrrrrrrrrrrrrrrrrrrrrrrrrr�rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr•rrrrrrrri NOTES: 1. Section 33413(b)(1), (2), and(4) require agencies to ensure that applicable percentages (30% or 15:%) o all (anarket-rate and affordable) "new and substantially rehabilitated dwelling units"are made available at affordable housing cost within 10 year planning periods. Market-rate units: units not assisted with low-mod funds and jurisdiction does not control affordability restrictions. Affordable units: units generally restricted for the longest feasible time beyond the redevelopment plan's land use con',trols and jurisdiction controls affordability restrictions. Agency developed units: market-rate units can nbt exceed 70 percent and affordable units must be at least 30 percent; however, all units assisted with;low-mod funds must be affordable. Nonagency developed(project urea) units: market-rate units can not exceed 85 percent and affordable units must be at least 15 percent. 2. Production requirements may be met on a project-by-project basis or in aggregate within each 1%I year planning period. The percentage of affordable units relative to total units required within each 10 year planning period may be calculated us follows: AFFORDABLE units= Marker-rate x(.30 or.15) TOTAL units= ,Market-rate or A 'brdab'le (.70 or.85) (.70 or.85) (.30 or.15) California Redevelopment Agencies-Fiscal Year 2008-2009 HCD-E ;cll t-1 (7;)1ON) { tALIIIFORWIA AGENDA REPORT MEETING DATE: February 23, 2010 Council Item (X) CRA Item (X) TITLE: Mid Year Budget Review for Fiscal Year 2009/2010 - PRESENTED BY: Betsy M. Adams, City Manager RECOMMENDATION: Receive and File; Approve Recommended Mid Year Budget Appropriation Adjustments; and Approve Changes to Reserve Designations BACKGROUND: The City Council approved the Fiscal Year 2009/2010 budget at the Council Meeting on June 23, 2009. The fund level summary of revenues and expenditures in the adopted budget is as follows: Description Revenue Expenditures General Fund _�--�' 5,280,675 5,222,845 _pecial Funds_ — _ 3,756,795— 3,472 931 _Capital Funds 1,107,500 1,107,500 CRA Funds 9,073,086 — 8,314,804 TOTAL -- -------------------$199218,056 $18,118,080-The fund level summary of beginning reserves in the adopted budget is as follows: Description Available Designated Total General Fund 2,831,483 - 947,244 3,778,727 -- ----- --- -- , -- — - --- - - Special Funds — 2,001,127 1,017,600 3 018 727 Capital Projects F , 'p and -�:,, i i), CRA Funds 5,051,001 2,700,000 7,751,001 TOTAL $997159004 $4 664 844 $14,379,848 General Fund expenditures in the Fiscal Year 2009/2010 adopted budget are $1,160,765 lower than the prior fiscal year ($5,222,845 versus $6,383,610). General Fund revenues are $45,084 lower ($5,280,674 versus $5,325,758) and include $320,000 in one time revenues plus a S,155,725 loan from the Community Redevelopment Agency (CRA). CRA AGENDA ITEM NO. + 1 DISCUSSION: The mid year budget review for Fiscal Year 2009/2010 will cover significant changes to revenues, expenditures and reserves since the budget was adopted. Revenues and expenditure information is based on activity through January 2010. The primary emphasis of the mid year budget review will be the General Fund. Revenues Revenue estimates for the Fiscal Year 2009/2010 adopted budget were developed in-house and in some areas were overly optimistic. In fiscally challenging times, assistance is needed to estimate and monitor major revenue sources. While preparing the mid year budget review, staff sought assistance from the HdL Companies who provide these services on property tax and sales tax for many cities through the state. HdL also audits these revenues for errors which are submitted to the County Assessor (property tax) and the State Board of Equalization (sales tax), for correction. Given the uncertainty of the economic recovery, these services will be needed for next fiscal year also. Agreements with HdL for these services are included on the consent calendar of this Council Meeting. General Fund A comparison of General Fund revenues at the time of budget adoption, first quarter adjustments, and mid year review is presented below. The coloring of the columns green, yellow and pink respectively will be carried through the balance of this staff report to provide ease in following the data from these time periods. FY 2009/2010 General Fund Revenues _ Description Adoed:pt ,',;:; Adjusted Mid Year Budj 4et': - ; Budget Review Property Taxes 14.81+;500=. 1,481,500 1,525,850 Licenses &Permits ;'. 654,800 654,800 ; 575,290 :. Sales Tax/Sales Tax-In Lieu 986,905t 930,845 _ 751,920 Intergovernmental :,' 63,67T.-- 119,737 123,550 Charges for Services 106',100 106,100 104,350 Planning Fees _ `. 22;900_': — 22,900 I 22,050 Recreation Fees _ _ 11;300.,:'- 11,300_ _ 11,3_00_ Childcare Fees 1,0427017.1! 1,042,017 1 — 1,001,000 Park Fees— ------------- 2,500"= 2,500 2,500 Fines & Forfeitures 30;750 30,750 27,350 Use of Money & Property __ 9895001 98,500 ! 50,500 Miscellaneous Revenue 24,000' 24,000 1,273 Transfers 755,725m 755,725 600,000 TOTAL _ $5,280,674 $5,280,674 $4,796,933 Primary components of the projected $483,741 General Fund revenue shortfall for Fiscal Year 2009/2010 include the following: • Construction permit revenue declined $90,000. ■ Sales tax revenue declined $178,925. • Investment earnings, included in use of money and property revenue, declined $40,000. 9 A' vs.-'IyY��: ■ PERS refund of$20,000, included in miscellaneous revenue, will not be received. ■ Loan of$155,725 from the CRA, included in transfers revenue; will not be done. Prior loans from the CRA to the General Fund will be addressed in the reserves section below. Other City Funds To simplify the mid year budget review, Special Funds and Capital Projects Funds will be combined and referred to as Other City Funds. A comparison of revenues for Other City Funds at the time of budget adoption, first quarter adjustments, and mid year review follows: FY 2009/2010Other City F_unds_Revenues _ Description Adopted: Adjusted Mid Year Budget-� Budget Review Street _ 1,0.03,0$2=. 1,003,082 i 113 082 ' Storm Drain ; 31`,800 t _— 31,800 ' 500 ! Park---- ------ ---- ---- . 13;965i _ 13,965 i----_1,500 _SLESF_(COPS) _-- - ;;,: 298,418= 298,418 ! 2_9_8,418 Air Quality Improvement 15,730_ 15,730 ! 14,400 Gas Tax __-_-- - 356J65,-, 356,765 j _256,865 Traffic Safety___ _ 66;400== 66,400 i 55,100 Facilities _- 23,000:; 23,000 ! 1,000 Measure "I" _ - =' ;3865W'' _ 380,500 150,600 i Waste Water Dis osal 1,552,800- 1,552,800--i---- 1,502,800 pi------ - P-- ------ -- Landsca_e& Lighting _ - - - -------- ---- ---- - --- - -- ---. .. -- ��._.. 1,4335,; - 14,335 i 14 335 Bike Lane _ „ 2%000` 2009000 j 82,405 _Street Improvements__ _ _ `➢;.327;500= 327,500 70,000 Barton/Colton Bridge 580000: 580,000 ' 200,000 TOTAL _ -- $4,864,295= _-_$4,864,295 i..____$2,761,005 Primary components of the projected $2,103,290 Other City Funds revenue shortfall for Fiscal Year 2009/2010 include the following: ■ Developer fees revenue declined $1,032,965. ■ Investment earnings declined $68,250. ■ Measure "I" %z-cent sales tax revenue declined $27,000. CRA Funds A comparison of revenues for CRA Funds at the time of budget adoption, first quarter adjustments, and mid year review follows: FY 2009/2010 CRA Funds Re venues evenues Description Adopted I Adjusted Mid Year Bud et , Budget Review Capital Projects 946 000 ! 946 000 947,000 Debt Service 6 547,487 ' 6,547,487 6- 373,662 - , Low/Mod Income Housing _ 1,579,599 , 1,579,599 1,462,500 _ _ TOTAL $9,073,086 _ �$9,0739086 589783,162 The primary components of the projected $289,924 CRA Funds revenue shortfall for Fiscal Year 2009/2010 include the following: ■ Investment earning declined $90,000 in the Debt Service Fund and $77,000 in the Low Income Housing Fund. ■ Property tax revenue, in the Debt Service Fund, declined$83,825. The full scope of the revenue shortfall the City faces in Fiscal Year 2009/2010 is summarized in below: FY 2009/2010 All Funds Revenues Description Adopted Adjusted Mid Year Bud et Budget Review _ General Fund 5,280,674 5,280,674 1 _ 4,796,933 Other City Funds _ _ 4,864;295`.) 4,864,295 ;_ 2,761,005 CRA Funds 9,073,086 9,073,086 8,783,162 TOTAL k9,218 055d _-$19,218,055 1 _$169341,100 While a revenue shortfall of$2,876,955 across all funds is of concern, it is important to note that $2,393,214 of this revenue shortfall, or 83.2%, is in not in the General Fund. Rather it is in funds where projects can be deferred until the revenue is received. This is how the City will initially address the revenue shortfall in Other City Funds and CRA Funds. The potential reprioritization of projects to available revenue can either be done as part of the City Council's annual goal setting meeting or as a Study Session item. The General Fund review shortfall of$483,741 is of more immediate concern because much of the City's operations are funded there. To provide the appropriate context for addressing this revenue shortfall projected General Fund expenditures need to be reviewed. Expenditures A comparison of General Fund expenditures at the time of budget adoption, first quarter adjustments, and mid year review follows: _FY_2_0.09/2010 General Fund Expenditures Description Adopted Adjusted Mid Year Budget,- Budget Review City Council 48,006 48,000 _ 42,000 441,155`: 441'-155 299,455 M City anager -------------- ---- --- --- -- -- -- - City Clerk _ _ 208,090: 208,090 '_ 194,690 Finance 341,195-,'_ 344,734 344,734 City Attome- 40,000., 40,000 74,000 Building & Safety 124,310 1 24,3 10 124,310 Public Works _ 128,120 i 128,120 128,120 Community Services 542,660 ' 545,135 520,835 Rental Inspection 59,430 59,430 59,430 Non Departmental 301,657 726,328 736,900 Community Devel - Planning 318,020 320,917 279,917 GIS 107,640 -- 107,640 106,940 Law Enforcement 1,772,931 1,773,731 1,723,731 Child Care Services 884,440, . ..... -- - --- ---- _-..-862-,-305 Park Maintenance 210,980 210,980 205,980 Storm Drain Maintenance to, 4,500 , 4,500'" '-'-4,500-- 9 ------- Planning Commission 3,950; 3,950 3,950 1 00 Historical/Cultural Comm 1,200; 1,200 1,200 0. Senior Citizens Program 54,150,` 58,350 _______58,350 EOC — 12,6.50 17,077 17,077 Transfer to Gas Tax 2�500 0 0 Transfer to SLESF (COPS) 153,4184 0 0 Cost Allocation -568 151 -568,151 TOTAL ------ -568,151 $5 1 aAL2L845 $5,479,936 $5,220,273 The General Fund mid year budget expenditure projection of$5,220,273 is slightly lower than the adopted budget and $259,663 less than the adjusted budget. The items which make up this $259,663 are included as Attachment A to this staff report and can be treated as mid year appropriation adjustments. When the $4,796,933 General Fund mid year budget revenue is compared to the $5,220,273 General Fund mid year expenditures there is a mid year budget shortfall of $423,340. This shortfall represents 8.1% of the General Fund budget mid year expenditures. Operational savings of this magnitude in the last four months of the fiscal year could not be achieved without major reductions in City services, especially when law enforcement services and child care services respectively comprise 33.0% and 16.5% of the General Fund expenditures. A multifaceted approach is needed to address the revenue shortfall impacting the General Fund budget would include the following: • Freeze spending on all items not deemed as "Mission critical"by department directors. • Require City Manager approval for any purchase over$500. • Freeze hiring for vacant career positions (positions with benefits). • Require City Manager approval for hiring any temporary employee. • Evaluate if any additional General Fund expenditures can be allocated to other funds. • Review each contract service, excluding law enforcement, to determine if a more cost effective method for the service is available. • Review major revenues to be sure they are being fully collected and accurately estimated. • Authorize the City Manager to discuss labor savings alternatives with employees. • Use available General Fund reserves for any remaining revenue shortfall. It is highly probable that the latter two items above, labor savings and use of General Fund reserves, will bridge the majority of the $423,240 General Fund budget shortfall. Reserves For reserves to be considered as part of the solution to the City's revenue shortfall this fiscal year, it is important that the City Council be aware of two significant adjustments to designated reserves in the Fiscal Year 2009/2010 budget which are needed to properly reflect obligations the City has. Adjustment to General Fund Reserve The General Fund reserve does not include a $4,606,950 "advance" from the CRA to the City (General Fund) which is reported in the Annual Financial Reports for June 30, 2008 for the City and the CRA. It was reported then because of a change in Governmental Accounting Standards Board (GASB) reporting requirements. Staff has done considerable research for available records on this advance so that it could properly be reflected in the adopted budget. In addition to the CRA advance to the General Fund, staff discovered a General Fund loan to the CRA for $538,838 made in February 2003 of which $271,216 has been repaid. Property tax increment was misallocated to the General Fund instead of the CRA during the fiscal years of 1991/1992 through 1996/1997 and only partial repayment was made. Since this time period is past the statute of limitations for collections (10 years), staff recommends the misallocated amount of $2,013,628 due to the CRA Capital Projects Fund be "forgiven" and written off as an uncollectible debt. Advances from the CRA to the General Fund were made during the fiscal years of 1990/1991 through 2000/2001. These funds ($2,025,495 from the Capital Projects Fund and $300,205 from the Low-Mod Fund) should be repaid with interest. With interest calculated each year at the historical LAIF (Local Agency Investment Fund) rate, the net amount due to the CRA from the General Fund is $2,609,059. A summary of this information follows: Advance from CPA to General Fund(2008 Financial Reports) $4,606,950 Less balance due from$538,838 General Fund loan to CRA -267,622 Less "forgiven"misallocated property tax increment -2,013,628 Advance from CRA to General Fund 2,325,700 Interest due 283,359 ' Total loan from CRA to General Fund $2,609,059 The $2,609,059 due to the CRA from the General Fund should be reflected in the budget by designating reserves. The adopted budget includes the following General Fund Reserve summary: Beginning FY 2009/2010 General Fund Reserve Available Designated Total $2,831,483 $947,244 $3,778,727 The designated reserve of$947,244 includes $21,686 as a CLEEP (California Law Enforcement Equipment Program) Reserve and $925,558 which has been treated as an emergency contingency reserve. To address the loan due to the CRA, the latter number has be moved from designated to available (bringing total available to $3,757,041). The project General Fund reserve for 2009/2010 with the CRA loan included in the designated fund balance would be as: follows: -- - --- --- -- - -- - Revised Beginning FY 2009/2010 General Fund Reserve Available Designated Total $1,147,982 $2,630,745 $3,778,727 If the City Council concurs with staff s recommendation for addressing the misallocated property tax increment from 1991/1992 through 1996/1997 along with the advances from the CRA to the General Fund made from 1990/1991 through 2000/2001 the appropriate documents to memorialize this will be brought forward at a future Council Meeting. Adjustment to CRA Reserve The CRA reserve does not include the $2,179,087 SERAF (Supplemental Educational Revenue Augmentation Funds) transfer whichGrand Terrace will have to make to the State of California under ABX4-26, a State budget trailer bill passed in July 2009 as part of the 2009/2010 State budget. The California Redevelopment Association filed a lawsuit against the State in Sacramento .Superior Court for attempting to take $2.05 billion from redevelopment agencies. The judge is expected to take the case under submission on March 2, 2010 and to make a ruling within 90 days. The CRA must inform the San Bernardino County Auditor before March 1, 2010 how it intends to fund the SERAF transfer (from CRA Debt Service). The CRA resolution for this is on the consent calendar for this Council Meeting. The SERAF payment is due May 10, 2010 unless a favorable ruling is made before then the California Redevelopment Association's lawsuit. The adopted budget includes the following CRA reserve summary: ----- - ------------- ------- -- ----- - -- - - ---------------------- Beginning FY 2009/2010 CRA Reserve -- -- ---- -------- - Available .- Designated Total $5,051,719 $2,700,000 $7,751,719 The revised CRA reserve for 2009/2010 with the SERAF transfer included in the designated fund balance would be as follows: Revised Beginning FY 2009/2010 CRA Reserve Available Designated Total $2,872,632 $4,879,087 $7,751,719 If California Redevelopment Agency prevails in SERAF lawsuit then $2,179,087 will be returned to available reserves. Looking Forward to Fiscal Year 2010/2011 An important part of any mid year budget review is to provide early insight into the budget for the next fiscal year. For Grand Terrace, barring any significant improvement in the regional economy, Fiscal Year 2010/2011 will be more challenging than the current fiscal year. Significant one-time revenues are not anticipated to be available, which increases the difference between General Fund revenues and expenditures by $300,000. Revenue growth is not anticipated unless local development activity increases. Very minimal expenditure increases are anticipated unless there is a contract rate increase for law enforcement services. Any potential taking of local government revenues by the State is not yet known for next fiscal year. Absent new revenues or a significant increase in existing revenues, a General Fund revenue shortfall of $800,000 in Fiscal Year 2010/2011 is likely and will have to be addressed through service level reductions and the potential use of additional reserves. FISCAL IMPACT: This fiscal impact of the mid year budget review has been addressed throughout the body of this staff report. Respectfully submitted, Bets A. Adains City Manager Manager Approval: Betsy . Ad s City Manager ATTACHMENTS: Attachment A—FY 2009/2010 General Fund and CRA Funds Identified Savings &New Expenditures Attachment A FY 2009/2010 General Fund-Identified Savings & New Expenditures rAccount# Program $ Description 1 10-I10-220 CityCouncil 1,000 Special Departmental Expense(pending Council approval) # 2 10-110-270 CityCouncil 5,000 Travel/conferences/meetings s(pending Council approval) 3 10-120-110 Ci Mana er 132,000 Accrue T. Schwab settlement agreement to 6/30/09(per auditor) 4 10-120-230 City Manager 2,500 Advertising, 5 10-120-270 City Manager 3,500 Travel/conferences/meetings 6 10-120-273 City Manager 3,700 Transfer vehicle lease to Code Enforcement 7 10-125-213 City Clerk 10,400 Newsletter(move BMO expense to CRA) 10 10-125-270 City Clerk 1,500 Travel/conferences/meetings s _ 11 10-125-701 Ci Clerk 1,500 E ui ment/ca ital items 12 10-180-220 CommunityServices 1,500 S ecial Departmental Expense 13 10-180-230 Community Services 5,000 Advertising 14 10-180-265 Community Services 1,500 Training 15 10-180-270 Community Services 1,000 Travel/conferences/meetings 16 10-180-273 Community Services 3,300 Automobile Allowance 17 10-180-706 Community Services 10,000 Civic Center improvements 18 10-180-710 -Community Services 2,000 Maintenance Equipment 19 10-370-230 Community Development 8,000 Advertising 20 10-370-25_0 __C_ommunity Development 28,000 Professional services 21 10-3 00-268 community Development 1,000 Training 22 10-370-270 Community Development 400 Travel/conferences/meetings 23 10-370-271 ommunity Development 3,600 Transfer CED Director automobile allowance to CRA 24 10-380-210 GIS 200 Office expense/supplies 25 10-380-270 GIS 500 Comdex conference 26 10-410-256 Law Enforcement 50,000 Contract increase less than 3%budgeted 27 10-440-219 Child Care Services 4,655 Office furniture/minor equipment 28 10440-220 Child Care Services 6,000 Food/lunch and snacks 29 10-440-223 Child Care Services 2,000 School a e ro am 30 10-440-225 Child Care Services 200 Christmas day cam 31 10-440-228 Child Care Services 500 Preschool/infant programs 32 10-440-230 Child Care Services 280 Advertising 33 10440-245 Child Care Services 2,800 Maintenance building and grounds 34 10-440-246 Child Care Services 2,000 Maintenance of equipment 35 10-440-270 Child Care Services 500 Travel,conferences&meetings 36 10-40-271 Child Care Services 200 Mileage 37 10-440-272 Child Care Services 2,000 Fuel and vehicle maintenance 38 10-440-700 Child Care Services 1,000 Computer equipment 39 10-450-701 Park Maintenance 5,000 Minor equipment 40 10-160-250 City Attorney -14-000 Increase GF portion($9K for Jan+$5K/mo Feb thru June) 41 10-190-256 Non Departmental -�il.=?2 Increase animal shelter services contract cost Total $259,663 Net General Funds Savings Identified for FY 2009/ 0010 FY 2009/2010 CRA Funds-Identified Savings &New Expenditures # Account# Program $ Description 1 32-200-110 Capital Projects 26,400 Accrue T. Schwab settlement a eement to 6/30/09(per auditor) 2 34-400-1 10 Low&Mod Housing 17,600 Accrue T. Schwab settlement agreement to 6/30/09(per auditor) 3 32-200-213 _Capital Projects :1 Newsletter(move BMO expense from City Clerk) 4 32-200-250 Capital Projects HdL property tax services 5 32-200-251 Capital Projects Attorney-CRA($5K/mo April thru June) 6 32-200-255 Capital Projects SANBAG MOU SB 375 7 32-200-271 Capital Projects Transfer CED Director automobile allowance from GF 8 34-400-271 Low& Mod Housing Transfer vehicle lease from GF to Code Enforcement Total Q :Rim CALIIFORNIA AGENDA REPORT MEETING DATE: February 23, 2010 Council Item ( X ) CRA Item ( X ) TITLE: Memorandum of Understanding ("MOU") between, the City and the San Bernardino Association of Governments ("SANBAG") for the Greenhouse Gas Inventory and Reduction Plan PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: Council: Approve the MOU with SANBAG and authorize the City Manager to execute the MOU Agency: Appropriate $15,798.25 to an established project account for the City's share to complete the regional Greenhouse Gas Inventory and Gas Reduction Plan BACKGROUND: State Assembly Bill 32 mandated the California Air Resources Board to establish regulations to address global climate change and to reduce greenhouse gas emissions to 1990 levels by 2020. State Senate Bill 375 calls for the reduction of greenhouse gas emissions in regional planning goals. The County of San Bernardino ("County") is nearing completion of a Greenhouse Gas Inventory and Reduction Plan for the unincorporated areas, and it is expected that all jurisdictions in the county will be required to comply with SB 32 and SB 3.75. Given the work that the County has done, SANBAG is recommending, and the County has agreed, that SANBAG's participating cities contract with the environmental firm preparing the County's Plan and build on that work by pooling surrounding City resources along with SANBAG's to prepare plans for participating jurisdictions. DISCUSSION: Completing this work in cooperation with SANBAG and other cities through a MOU (Attachment 1) would benefit our City by reducing costs as described above. SANBAG has already prepared an extensive Scope of Work, and will manage the project. The total project cost, including the implementation plan, is $784,897.22. SANBAG's contribution is $231,160.00, and $553.737.22 is the total shared among the participating cities. Our City's share, based on population, is $15,798.25. These funds are due to SANBAG within 30 days of execution of the MOU, and any unused funds will be returned. The completion date is on or before December 31, 2011. CRA AGENDA ITEM NO. 1 i i t The objectives of the program include: - r • Provide a climate action plan tool to each city government to develop the internal inventory and reduction plan. • Develop local climate action measures for various sectors, such as transportation, water;: waste, and stationary fuel combustion. • Individual jurisdictional climate action-plans become components of a regional plan to reduce Greenhouse Gases. • Develop reduction strategies and evaluate them for feasibility of implementation. City staff will actually prepare the inventory using a program developed by the consultant, which will also track reduction measures. Local GHG reduction strategies have already been developed for San Bernardino County primarily focused on the following: • Building energy efficiency and renewable energy as a means to reduce emissions from energy consumption; t • Reducing emissions from goods movement and other transportation; and, • Reductions in solid waste. i Although significant staff time will be necessary to meet the requirements, the value of these resources exceeds the participation cost of$15,798.25. The final product can then be used by the County and participating cities to demonstrate compliance with SB 32 and SB 375 when evaluating future projects. i FISCAL IMPACT: Funds are available in the Redevelopment Capital Projects Fund for this project. . I Respectfully submitted, 1 t oyce Powers Community and Economic Development Director 4 I Manager Approval: Betsy Nf Adams ' City Manager ATTACHMENT: Memorandum of Understanding I i .1 i-AUi .9 I MEMORANDUM OF UNDERSTANDING Contract C10144 BY AND BETWEEN SAN BERNARDINO ASSOCIATED GOVERNMENTS AND CITIES OF ADELANTO, BIG BEAR LAKE, CHINO, CHINO HILLS, FONTANA, GRAND TERRACE, HESPERIA, HIGHLAND, LOMA LINDA, MONTCLAIR, NEEDLES, ONTARIO, RANCHO CUCAMONGA, REDLANDS, RIALTO,SAN BERNARDINO, TWENTYNINE PALMS, ' VICTORVILLE,YUCAIPA, AND THE TOWN OF YUCCA VALLEY FOR PREPARATION OF SAN BERNARDINO COUNTY REGIONAL GREENHOUSE GAS INVENTORY AND REDUCTION PLAN AND RELATED ENVIRONMENTAL IMPACT REPORT RECITALS: The Memorandum of Understanding (MOU) is entered into by and between the San Bernardino Associated Governments (SANBAG) and the City of Adelanto, City of Big Bear Lake, City of Chino, City of Chino Hills, City of Fontana, City of Grand Terrace, City of Hesperia, City of Highland, City of Loma Linda, City of Montclair, City of Needles, City of Ontario, City of Rancho Cucamonga, City of Redlands, City of Rialto, City of San Bernardino, City of Twentynine Palms, City of Victorville, City of Yucaipa, and Town of Yucca Valley collectively referred to herein as "PARTIES" regarding the preparation of the San Bernardino County Regional Greenhouse Gas Inventory and Reduction Plan and the related Environmental Impact Report collectively hereinafter referred to as "PROJECT," and with regard to the following matters: WHEREAS, AB 32 mandated the California Air Resources Board (CARB) to develop regulations on how the state could address global climate change and established a target of reducing greenhouse gas emissions down to 1990 levels by the year 2020; and WHEREAS, SB 375 also calls for the reduction of greenhouse gas emissions as one of the overarching goals for regional planning; and WHEREAS, San Bernardino County is nearing completion on a Greenhouse Gas Inventory and Reduction Plan for the unincorporated areas of the County and County government operations as part of a settlement with the Attorney General's Office; and WHEREAS, every other jurisdiction in the County will be faced with addressing greenhouse gas emissions.under the provisions of AB 32 and SB 375; and WHEREAS, by working cooperatively and using the same consultants that are preparing the Greenhouse Gas Inventory for the County, specifically ICF Jones & Stokes and PBS&J herein referred to as "CONSULTANTS", PARTIES could benefit from work already done and realize significant savings as opposed to each agency preparing their own inventory; and WHEREAS, it is the intent and purpose of this MOU for PARTIES to provide funding to SANBAG to procure services from CONSULTANTS to perform the Scope of Work identified in Attachment "A" regarding the PROJECT. follows: NOW, THEREFORE, it is mutually understood and agreed to by SANBAG and the PARTIES as C10144-dab.docx 49010000 1. Incorporation of Recitals The above-referenced recitals are a substantive part of this Agreement, and are incorporated ; herein by this reference. _ I 2. Scope of Work A. SANBAG agrees- to negotiate a contract with ICF Jones & Stokes and PBS&J (the "CONSULTANTS"")to perform the-Scope of Work as described in Attachment"A", attached ! hereto and incorporated by this reference. B. Subject to the execution of a valid, enforceable contract between SANBAG and the CONSULTANTS, SANBAG shall be responsible for managing the CONSULTANTS; in performing the Scope of Work. SANBAG's Project Manager shall approve all invoices of CONSULTANTS. D. SANBAG's Project Manager will. have final approval of all.CONSULTANTS' deliverables; however, prior to final approval of a deliverable from the CONSULTANTS, SANBAG's Project Manager will consult with the designated staff from other PARTIES. F. Within 30 days of final approval of this MOU, PARTIES will designate a contact staff person for the PROJECT and notify SANBAG's Project Manager with contact information for that 4 contact staff person. G. For purposes of this Agreement, SANBAG designates the following Project Manager;for this Project: Ty Schuiling Director of Planning and Programming, San Bernardino Associated Governments 1170 West Third Street, 2nd Floor San Bernardino, CA 90012 (909)884-8276 i 3. Term The term of this MOU shall begin on the Effective Date of the MOW and continue until; December 31, 2011, hereinafter referred to as the "Completion Date," unless terminated earlier, as provided herein. Services performed under this Agreement shall commence upon SANBAG's; Board of Directors authorization, approval and award of a contract to the CONTRACTORS.; The term may be extended subject to mutual agreement by SANBAG and PARTIES. 4. Payment k A. Except as expressly provided herein, PARTIES shall provide the funds described in Attachment "B", attached hereto and incorporated by this reference, to SANBAG due and payable in full, thirty(30)days after the execution of this MOU. C10144-dab.dbc 4901000 r: B. From the $553,737.22 provided by the PARTIES and the $231,160 provided by SANBAG as set forth in Attachment "B", SANBAG shall pay for all costs and expenses incurred by CONSULTANTS related to the Scope of Work described in Attachment"A". C. Except as expressly provided herein, if any funds paid in advance by PARTIES are unspent upon the completion or termination of this MOU, SANBAG shall return such funds to PARTIES in the proportions listed in Attachment "B" within 30 days of the completion or termination of the MOU. 5. Mutual Indemnification ' A. Neither PARTIES nor any officer or employee thereof shall be responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by SANBAG or by its officers, agents, employees, contractors and subcontractors in connection with this MOU. SANBAG shall indemnify, defend and hold PARTIES and their respective officers, agents and employees harmless from any liability and expenses, including without limitation, defense costs, any costs or liability for any claims for damages of any nature whatsoever arising out of and to the extent caused by any act or omission of SANBAG or its officers, agents, employees, contractors or subcontractors in connection with this MOU, including, without limitation, procurement and management of the CONSULTANTS. B. Neither SANBAG nor any officer or employee thereof shall be responsible for any injury, damage or liability occurring by, reason of anything done or omitted to be done by PARTIES, or by their respective . officers, .agents, employees, contractors and subcontractors in connection with this MOU. PARTIES shall indemnify, defend and hold SANBAG and their respective officers, agents and employees harmless from any liability and expenses, including without limitation, defense costs, any costs or liability for any claims for damages of any nature whatsoever arising out of and to the extent caused by any act or omission of PARTIES or their officers, agents, employees, contractors or subcontractors in connection with this.MOU, including, without limitation, procurement and management of the CONSULTANTS. 6. Termination A. If through any cause, PARTIES fail to fulfill in a timely and proper manner their obligations under this MOU, or violates any of the terms or conditions of this MOU or any applicable Federal and State laws and regulations, SANBAG reserves the right to terminate this MOU upon thirty(30) days written notice to PARTIES. If this MOU is terminated by SANBAG as provided herein, PARTIES agree to share in any costs of termination of the CONSULTANTS contract not to exceed the actual costs of work performed by the CONSULTANTS prior to the date of termination. 7. Notice. Any notice or notices required or permitted'to be given pursuant to this agreement may be personally served on the other party by the party giving such notice, or may be served by certified mail, return receipt requested, to the following addresses:' To SANBAG: Deborah Robinson Barmack Executive Director San Bernardino Associated Governments 1170 West Third Street, 2nd Floor San Bernardino, CA 90012 C 10144-dab.doc 4901000 I � ' 1 To City of Adelanto: James Hart City Manager P.O. Box 10 Adelanto, CA 92301 To City of Big-Bear Lake Jeff Mathieu City Manager City of Big Bear Lake P.O. Box 10000 Big Bear Lake, CA 92315-8900 To City of Chino Patrick Glover City Manager City of Chino P.O. Box 667 Chino, CA 91708-0667 • f To City of Chino Hills Michael Fleager City Manager City of Chino,Hills 14000 City Center Drive Chino Hills, CA 91709 To City of Fontana Ken Hunt City Manager City of Fontana 8353 Sierra Avenue Fontana, CA 92335 To City of Grand Terrace . Betsy Adams City Manager City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 ! To City of Hesperia Mike Podegracz, P.E. _ City Manager City of Hesperia 9700 Seventh Avenue Hesperia, CA 92345 To City of Highland Joseph Hughes City Manager City of Highland 27215 Base Line Highland, CA 92346 � I C10144-dab.doc 4901000 i To City of Loma Linda Jarb Thaipejr, P.E. City Manager City of Loma Linda 25541 Barton Road Loma Linda, CA 92354 To City of Montclair Lee.McDougal City Manager_- �, City of Montclair 1' P.O. Box 2308 Montclair, CA 91763 To City of Needles William Way Jr. City Manager City of Needles 817 Third Street Needles, CA 92363 To City of Ontario Greg Devereaux City Manager City of Ontario 303 East B Street Ontario, CA 91764 To City of Rancho Cucamonga Jack Lam City Manager City of Rancho Cucamonga P.O. Box 807 Rancho Cucamonga, CA 91729 To City of Redlands Enrique Martinez City Manager City of Redlands P.O. Box 3005 - Redlands, CA 92373-1505 To City of Rialto Henry Garcia City Manager City of Rialto' 150 South Palm Avenue Rialto, CA 92376 To City of San Bernardino Charles McNeely City Manager City of San Bernardino 300 North"D"Street San Bernardino, CA 92418 C10144-dab.doc 4901000 7 I i � I i I I i To City of Twentynine Palms Michael Tree City Manager i City of Twentynine Palms 6136 Adobe Road Twentynine Palms, CA 92277 To City of Victorville James Cox - I City Manager City of Victorville j P.O. Box 5001 Victorville, CA 92393-5001 To City of Yucaipa Ray Casey City Manager City of Twentynine Palms 34272 Yucaipa Boulevard Yucaipa, CA 92399 To City of Yucca Valley Andrew Takata City Manager Town of Yucca Valley 57090,29 Palms Highway Yucca Valley, CA 92284 9. Miscellaneous. A. This MOU contains the entire understanding between SANBAG and the PARTIES and` supersedes any prior written or oral understandings and agreements regarding the subject; matter of this MOU. There are no representations, agreements, arrangements or! understanding oral or written, between SANBAG and the PARTIES relating to the subject! matter of this MOU,which are not fully'expressed herein. B. This MOU shall be construed and interpreted under the laws of the State of California. C. In the event any part of this MOU is declared by a court of competent jurisdiction to .be invalid, void, or unenforceable, such part shall be deemed severed from the remainder of; the MOU and the remaining provisions shall continue in full force without being impaired or; invalidated in any way. i D. No party. may assign this MOU or any part thereof, without written consent and prior; approval of every other party, and any assignment without said consent shall be void'and unenforceable. E. No amendment, modification, alteration or variation of the terms of this MOU shall be valid unless made in writing and signed by the parties hereto and no oral understanding orl agreement pertaining to the subject matter of this. MOU and not incorporated herein shall be binding on any of the parties thereto. Time is of the essence for each and every,` provision of this MOU. I C10144 dab.doc ! 4901000 ' ' I j I • 10. Effective Date. This MOU shall be effective on the date on which the last of the PARTIES executes this document. [Signature Pages to follow.] C 10144-dab.doc 4901000 4 IN WITNESS WHEREOF, the SANBAG and PARTIES hereto have executed this MOU on the date and year herein written below: SAN BERNARDINO ASSOCIATED GOVERNMENTS By: Deborah Robinson Barmack Executive Director Date: APPROVED AS TO FORM: By: Jean-Rene Basle SANBAG Counsel Date: C 10144-dab.docx 49010000 City of Grand Terrace Signature Page MEMORANDUM OF UNDERSTANDING Contract C10144 BY AND BETWEEN SAN BERNARDINO ASSOCIATED GOVERNMENTS CITIES OF ADELANTO, BIG BEAR LAKE, CHINO, CHINO HILLS, FONTANA, GRAND TERRACE, HESPERIA, HIGHLAND, LOMA LINDA, MONTCLAIR, NEEDLES, ONTARIO, RANCHO CUCAMONGA, REDLANDS, RIALTO, SAN BERNARDINO, TWENTYNINE PALMS, VICTORVILLE,YUCAIPA, AND YUCCA VALLEY FOR PREPARATION OF SAN BERNARDINO COUNTY REGIONAL GREENHOUSE GAS INVENTORY AND REDUCTION PLAN AND RELATED ENVIRONMENTAL IMPACT REPORT IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year herein written below: CITY OF GRAND TERRACE By: Date: APPROVED AS TO FORM: By: Legal Counsel Date: C 10144-dab.docx 49010000 11 { Attachment"A" ICF Jones MtoVs Sco a oor Project Understanding Climate change mitigation and adaptation are a growing concern for the County : of San Bernardino and cities within the County, as well as for other counties and cities around the i world. The state of California has taken an aggressive stance to address global warming, through AB 32, the "Global Warming Solutions Act of 2006," Executive Order S-3-05, signed;by Governor Schwarzenegger, and SB 375 which calls for coordinated land use and transportation; planning as a means to address climate change, and additional legislative and regulatory; actions. AB 32 requires that the state's global warming emissions be reduced to 1990 levels by the year 2020. Executive Order S-3-05 established statewide GHG emission reduction targets as follows: • By 2010, reduce GHG emissions to 2000 levels • By 2020, reduce GHG emissions to 1990 levels • By 2050, reduce GHG emissions to 80% below 1990 levels It will be very challenging for the SBRCP as well as the State of California to meet these targets. Immediate actions are needed in order to reduce the cumulative and more serious impacts that would otherwise'occur. There is no learning curve for ICF for this type,of work; immediately on project startup we will, customize our data requirement templates for the requested GHG inventories and will use these; as the basis for consulting with city and County staff, SANBAG, the South Coast Air Quality, Management District (SCAQMD), as well as with utility and other public agency staff to identify' where local data is available and where we will have tor fall back on default data sources., The inventories themselves will be housed in ICF's standard spreadsheet tools that are ready to, go, can be initially populated with default data, and then quickly updated as better local data is acquired. We will take a similar approach to strategy development, starting with a list of, measures that have been taken by other local governments in California, and customizing this; to the jurisdictions that participate in the SBRCP. We know from experience that there are important differences in the methods, the data sources, and the emission reduction strategies that apply to internal operations as compared to those, that apply to the external influence of city governments like those in the County, of San Bernardino. In the case of internal operations, the required data (mostly records of fuel and electricity consumption) is usually readily at hand within the local government, can be easily processed to produce emission estimates, and the measures that can be taken to reduce emissions are relatively straightforward and under the direct control of the local government: In contrast, the data sources required to construct an inventory of emissions influenced by;the cities and County (i.e., "external emissions sources") are dispersed and often indirect, requiring the addition of expert assumptions and methods in order to yield the GHG estimate, and!the emission reduction methods are similarly indirect and have impacts that can usually only be estimated. For the internal inventories and reduction plans, we propose to provide a decision support tool to the city governments, along with data collection and tool support to ensure that each city gains familiarity with the tool for future efforts. This process will enable the cities to C10144-dab.doc ' f 4901000 12 customize their internal inventories and reduction plans according to the specific needs of their government operations and will facilitate future, cost effective updates of these inventories and reduction plans. However, the external inventories and reduction plans will require coordination amongst jurisdictions to obtain data, conduct analysis, and develop GHG reduction measures. For these reasons, we will conduct parallel but somewhat separate work programs for the internal and the external inventories and reduction plans. Proposed Plan to Achieve the Program Objectives ICF understands the overall objectives of the proposed scope to be the following: • Provide a climate action plan tool to each city government to develop its internal inventory and reduction plan; provide technical and decision-making support for this tool as needed. • Develop regional and local climate action measures for the following sectors: building energy water, transportation, goods movement, waste, and stationary fuel combustion. • Develop external climate action plans for each jurisdiction participating in the SBRCP as individual components of a regional (County-wide) climate action plan ICF has developed a proven approach to achieving these objectives and has honed this approach through implementation with several large public sector clients. Our proposed scope of work is presented below. We envisage the work proceeding in overlapping phases, and we have grouped individual tasks accordingly: • Task 1 —Preliminary Research, Data Source Identification, and Scoping • Task 2—Finalization of Data Source and Scoping Issues • Task 3—Tool Development and Support for City Internal Inventories and Reduction Plans • Task 4—Development of Regional GHG Reduction Strategies • Task 5—Analysis and GHG Baseline Development for City External Inventories a Task 6—Development of City External GHG Reduction Goals and Strategies • Task 7—Evaluation of GHG Reduction Strategy Implementation and Feasibility Task 1. Preliminary Research, Data Source Identification, and Scoping The scope for this task includes one meeting with SBRCP at each of which three key representatives from the ICF team will attend in person. Additional in person meetings requiring ICF travel are presumed to be outside of the scope of this task. Task 1.1 Project Startup Meeting This task includes conducting an initial meeting with the cities, County, and SANBAG, and other participants in the regional partnership to discuss the proposed content of the work plan, schedule, budget, and communication protocols. Identify key data providers at each city and at other agencies and discuss scoping issues around the external GHG Plan. Task 1.2 Literature and Data Source Review We will review existing GHG emissions inventory data from SCAQMD, cities in the County, and other readily available sources including all the data developed previously in work with San Bernardino County. Through this review we will have a strong understanding of the activities taking place within the County to ensure that all major GHG sources are identified. Task 1.3 Scoping Issues Paper We will prepare a scoping issues paper within the first 6 weeks of the startup meeting to examine all project key issues. C 10144-dab.doc 4901000 Task 1.3.1 Scoping Issues for City Internal GHG Plan Tool ICF will evaluate options for developing a tool that SBRCP member communities may use to conduct internal government GHG inventories and plan and track GHG reduction measures. ICF will draw from our experience in conducting local government GHG inventories and reduction plans for clients such as the government of San Bernardino County. ICF will draw , from its library of existing tools to propose a custom tool for SBRCP. Such existing tools include: • The Excel-based State Inventory Tool, developed for the EPA, which provides states with data and calculations to conduct state inventories; • The Excel-based Performance Tracking System, developed for the U.S. Capitol, which provides one module for estimating corporate-level GHG emissions and a second module for planning and tracking GHG reduction measures; • The Microsoft Access-based GHGID software, developed for conducting corporate-level GHG inventories; and • Additional Excel-based solutions for GHG inventory developing and reduction planning developed for regional planning agencies and other local governments. Under this task, ICF will analyze the GHG sources, proposed inventory methodology, and default reduction options that will be included in the tool. ICF will also discuss the proposed structure of the tool that balances utility and flexibility to SBRCP with resources available under this project by leveraging existing ICF tools. Task 1.3.2 Scoping Issues for External GHG Plans The scope for the External GHG Plans needs to be precisely understood to avoid delays and, ' misunderstandings later in the project. The policies and activities of the cities in the County affect GHG emissions both within and outside of the geographical boundaries of each city., This analysis will set out the issues for which we require explicit sign-off from the cities in order to precisely define the scope of the External GHG Plans and the corresponding data required to complete it. This analysis will form the basis for a meeting with the SBRCP (under Task 2) in which we will gain clarification of any possible scoping issues related to the External GHG Plans. Task 1.3.3 Scoping Issues for Local and Regional GHG Reduction Measures Certain sectoral reduction strategies (including energy efficiency and renewable energy) can'be' addressed through local city action, but may be able to be more efficiently implemented with regional cooperation. Specific sectors (i.e.,. water, transportation, goods movement, waste, and stationary fuel combustion) may be more effectively addressed through a combination of local and regional GHG reduction measures. These measures require the cooperation of numerous public agencies and may address emissions that span multiple cities and jurisdictions within the County. As such, the scope for the local and regional GHG reduction measures should also be. precisely understood to avoid delays and misunderstandings later in the project. This short, paper will set out the issues for which we require explicit sign-off from the SBRCP in order to precisely define the scope of the local and regional GHG reduction measures and .the corresponding data required to complete these measures. This analysis will form the basis for a meeting with the SBRCP (in Task 2) in which we will gain clarification of any possible scoping issues. This scoping paper will also specifically address how to scale each of these emissions: sources and associated reductions to the city-level so that these sources can be integrated into the individual city External GHG Reduction Plans. C10144-dab.doc 4901000 Task 2. Finalization of Data Source and.Scoping Issues The scope for this task includes two meetings with SBRCP at each of which two key representatives from the ICF team- will attend .in person. Additional in person meetings are presumed to be outside of the scope of this task. Task 2.1 Internal GHG Plan Tool Scope Meeting The analysis prepared in Task 1.3.1 will form the basis for a discussion with the objective of clarifying and finalizing any issues related to the scope of the Internal GHG Tool. Task 2.2 External GHG Plans Scope Meeting The analysis prepared in Task 1..3.2 and 1.3.3 will form the basis for a discussion with the objective of clarifying and finalizing any,issues related to the scope of the External GHG Plans. Task 2.3 Final Scoping Issues Paper Upon receipt of comments from SBRCP and after Task 2.1 and 2.2,.ICF will revise the memo, which will serve as the template for subsequent actions. Task 2.4 Candidate Measures for City External GHG Plans Once the scope for the External GHG Plans has been specified in detail, we will compile a list of candidate measures for the External GHG Plans by drawing on our own experience, the literature review, and interviews with SBRCP and SCAQMD staff.. Task 2.5 Data Acquisition for City External GHG Inventories and Plans Following completion of Tasks 2.3, we will contact (via phone and email) members of the SBRCP, the SCAQMD, and other potential data providers to identify and acquire the data needed for the External°GHG Inventories and Plans. Task 3. Tool Development and Support for City Internal Inventories and Reduction Plans ICF has worked with a variety-of governments and private entities to develop corporate-level GHG inventories and reduction plans using a combination of established, protocols, available platforms such as the ICLEI Clean Air and CACP software, and custom Microsoft Excel- and Access-based systems. In this case,, ICF believes that the SBRCP will'be best served with an interactive tool specific for SBRCP city governments. Such a tool would rely on existing protocols and methodologies, would be designed to be flexible enough to meet the SBRCP's needs now and in coming years, and would employ a user-friendly interface that is informative and easy to use. Specifically, the tool would be consistent with the CARB Local Government Operations Protocol (LOOP). This approach would allow the SBRCP's member communities to build capacity in local government to conduct GHG inventories, understand reduction options, and monitor progress as plans are implemented. ICF seeks to provide the SBRCP with the means to understand government GHG emissions and actively conduct reduction activities well after the project has been completed. The scope for this task includes one training with SBRCP in which two key representatives from the ICF team will attend in person. Additional trainings or in person meetings requiring ICF travel are presumed to be outside of the scope of this task. Task 3.1 Develop internal Inventory and Reduction Planning Tool ICF will develop a tool for SBRCP's member communities to use to conduct internal GHG inventories and plan GHG'reduction activities . The tool will contain all major sources of GHGs common to inventories such as buildings, vehicle fleets, employee commuting, streetlights, C10144-dab.doc 4901000 •r If i 1 1 water and wastewater, and waste management, as well as any other sources relevant'to' SBRCP's member communities. The tool will assist with emissions forecast projections and will also contain built-in reduction measures, such as building, vehicle, and lighting energy reduction and energy efficiency, as well as new measures that may be added by users. ICF will maximize efficiency under this task by adapting existing tools for this purpose. Screenshots of some existing tools are provided on the following page. ICF will develop a brief user's guide to be ! distributed with the tool. Task 3.2 User Support for Internal Inventory and Reduction Planning Tool ICF will distribute the tool and user's guide and will provide initial support to users of the tool developed under Task 3.1. ICF will provide a training session for representatives of the l member cities in SBRCP; this training session will be conducted in person. ICF will create;an ! email. account for users to contact when they are encountering difficulty or require guidance i during initial use (limited to first month after training session). The amount of technical supportil will be limited to the hours included in.the final scope for this task and will need to be specifically! defined by the SBRCP to assure adequate budget. ICF will monitor this account and respond to 1 inquiries as needed. If users identify any changes needed to the tool during the initial review, ICF will provide one update either via a patch or with an updated file, depending on the nature i, of the changes. Task 3.3 Peer Review of Internal GHG Inventory and Reduction Plans(Optional—Not Included in Scope) As an optional task, ICF could provide peer review of the internal GHG inventories and{ reduction plans prepared by the cities within the SBRCP. This task, if added to this scope, would consist of review of the inventory and reduction plan prepared by the individual cities,j provision of peer review comments and suggested revisions. Actual changes to the inventories and reduction plans are presumed to be done 'by the cities themselves. Depending on the j desire for this service and the number of cities requesting this support, ICF can prepare a budget augment request to cover this additional service. Task 4. Development of Local and Regional GHG Reduction Strategies ICF has already developed local GHG reduction strategies applicable to San Bernardino County! through its work for the County. Me expect to do little additional development of these local measures as they are expected to be directly applicable to the .cities within the County.; These measures primarily focus on' building energy efficiency and renewable energy ,for! residential and commercial applications. As described above, specific emissions sectors may be more effectively addressed through a! combination of local and regional GHG reduction measures, particularly if the emissions; associated with these sectors span several jurisdictions and are under the authority of several) different agencies. The reduction measures associated with these regional emissions sources will require the cooperation of numerous public agencies. We will address the following sectors; in parallel to develop emissions inventories and reduction measures for these sectors: water,1 transportation,-goods movement, waste, and building energy. The scope for this task does not include any in person meetings with SBRCP. Any in person! meetings for this task are presumed to be outside of the scope of this task. Task 4.1 Water We will evaluate the GHG emissions reduction potential for the water sector in San Bemardino County. Analysis will be conducted to determine an annual per acre foot demand' of water that is consistent with meeting the per capita water, use.reduction goal of "20x2O2O", as defined by`, C10144-dab.doc 4901000 1 the Governor's Water Conservation Statewide Implementation Plan. In February 2008, Governor Schwarzenegger called for a 20 percent reduction in per-capita water use by 2020 (i.e.,"20x2020") and initiated development of an aggressive plan of conservation to achieve that goal. The Department of Water Resources, the State Water Resources Control Board, the California Energy Commission, the Public Utilities Commission, the�Department of Public Health, the Air Resources Board, CALFED, and the U.S. Bureau of Reclamation have been actively preparing a statewide implementation plan to achieve this goal. The "20x2O2O" Agency Team has prepared a report that includes regional baseline urban water use data with water conservation targets for year 2020, a strategy for achieving those targets, and an implementation plan. We will review relevant energy use data embedded in pertinent water processes throughout the County. We will review relevant data, as available, for groundwater pumping, water treatment and distribution, wastewater treatment, and reclamation systems. Additionally, we will include the water conveyance facilities from the State Water Project (SWP) and the Metropolitan Water District of Southern California. Urban water management plans will provide a standard template of water sources and demand projections upon which our energy consumption forecasts will be made for 2020. Available additional data sources that may be reviewed, if needed, would consist of General Plans and reports authored by the California Energy Commission (CEC) and Department of Energy. This analysis will be conducted for public agencies only, including special districts and municipalities that provide urban and agricultural water to the County. The intent of data collection is not a comprehensive water demand analysis for the county. This will be a generalized assessment of water demand informed by local conditions, but not necessarily reflective of precise water energy use on the ground. The embodied energy use for water transport from outside of the County will be obtained from the CEC 2006 report, Refining Estimates of Water-Related Energy Use in California. This report provides proxies for embodied energy use for water in southern and northern California. Information in the CEC 2006 report regarding electricity usage and loss factors, as well as imported water quantities obtained from the urban water management plans, will be used to calculate indirect emissions from water importation to the County from the Colorado River and from the SWP. Emissions calculations will be based on electricity emission factors and guidance from the CCAR General Reporting Protocol. Task 4.1.1 Develop and Evaluate Best Management Practices for Energy-Water Conservation(Optional-Not included in Scope) As an optional task (not included in scope/cost estimate) we could further develop and evaluate a series of Best Management Practices (BMPs) for energy-water conservation purposes. We propose to develop and apply these BMPs as site specific case studies to determine their effectiveness and feasibility at achieving the.20% water conservation goal. BMPs may include some of the 14 water conservation BMPs already developed by the California Urban Water Conservation Council and in use throughout the state. Results of this task could inform the County and local water purveyors of additional means of implementing their 2010 Urban Water Management Plans consistent with meeting GHG reduction strategies. Task 4.2 On-Road Transportation On-road transportation emissions for the County will be based on estimates of regional vehicle miles traveled (VMT) and speed class. DKS Associates (DKS) will act as a subconsultant to ICF to configure and run SCAG's travel demand model for different land use and transportation scenarios. Estimates of regional VMT by vehicle and speed class for each origin-destination (OD) C10144-dab.doc 4901000 pair and scenario will be determined from the travel demand model. VMT estimates will then be aggregated as a daily total, with a weekday average. Unless otherwise'requested, ICF will not consider the effects of congestion on emissions since this analysis would greatly increase the computational requirements. In addition, 'there are also.methodological concerns about the ' accuracy of using EMFAC2007 to estimate the effects of congestion on emissions. Our approach to the calculation of on-road transportation emissions is divided in five sub-tasks: 1. Define land use scenarios; 2. Define transportation scenarios; 3. Develop VMT assessment methodology; _ 4. Setup and run TDM; ' 5. Calculate emissions. Task 4.2.t Define Land Use Scenarios On-road emissions estimates for 2020 will be based on several VMT forecasts. These VMT a forecasts will be developed based on potential scenarios for land use development patterns and the transportation network in San Bernardino County to 2020. We will work with SANBAG, SCAG and other local jurisdictions in San Bernardino County to define up to six scenarios to be, tested. The six scenarios will be a combination of land use scenarios and transportation scenarios. Three potential sources for land use'scenarios in San Bernardino are: SCAG's 2008 RTP — SCAG's Long-Range Transportation Plan (RTP) contains a VMT forecast; for San Bernardino County, which is based on an integrated growth forecast of population, employment, households, and housing units. The forecast was developed with input from state and federal sources, as well as input from local general plans. As part of this process, VMT, forecasts including origin-destination pairs in San Bernardino County were developed. This data can be fed directly into emissions models. The 2008 RTP also included an alternative "envision" scenario that focused on regional jobs-housing balance, but did not follow local plans, in some areas and was not fully vetted during the RTP process. SCAG's Conceptual Land Use Forecast — In response to forthcoming requirements from! California's SB 375 legislation, SCAG has developed a conceptual land use scenario, which; maintains county level growth forecasts from the 2008 RTP and maintains city level growth! forecasts within 10%, but focuses growth in regional and local transit networks, and in high; intensity areas as well as some vacant lower density areas. SCAG estimated that ;the conceptual land use scenario would reduce transportation CO2 emissions by 1.5 MMt below the 2008 RTP scenario in 2020. Data and maps are available on the SCAG website at the subregional level, showing changes in housing and employment by Traffic Analysis Zone (TAZ),, as well as the location of specific development zones and transportation network improvements. These will be input to a travel demand model to develop. origin-destination pairs for San Bernardino County. Hybrid Land Use Forecast— A third development scenario for San Bernardino County could be developed based on additional input from local governments. This scenario would reconcile SCAG's Conceptual Land Use Forecast with likely revisions to General Plans: Local governments could review the assumptions in the Conceptual Forecast and determine whether and how they would modify their General Plans to be consistent with that forecast. This more fully vetted version of the Conceptual Forecast would then be input to a travel demand model to develop origin-destination pairs for San Bernardino County. We presume'that any hybrid land use forecast would be developed by SANBAG and the cities and that ICF would not prepare this forecast. C10144-dab.doc 4901000 4.2.2.Define Transportation Scenarios The transportation scenarios will illustrate variation in highway and transit facilities and services, but will also incorporate trip and VMT reduction measures. We will work with SANBAG, SCAG, and SBRCP to define appropriate trip and VMT reduction measures to include in the transportation scenarios to be tested and to define how the team will evaluate the effectiveness of those measures. The measures to be considered will include measures that encourage mode shifts or increases in vehicle occupancy, measures that produce better traffic operations and measures that promote less environmentally harmful freight movement methods. We expect to identify activities consistent with previous projects and programs, the RTP and other relevant long-range transportation programs. Reductions of regional transportation emissions will be estimated for the activities defined by the stakeholder group listed above. Three potential sources for transportation scenarios in San Bernardino are: SCAG's 2008 RTP—The 2008 RTP transportation network could be analyzed. SCAG's Sustainable Communities Strategy—SCAG will be developing an alternative network to support the SCS. If this is developed in time to support this work, this network could be analyzed. Alternative Transportation Network (not included in scope)—Alternatives to the 2008 RTP or the SCS could be analyzed as developed by SANBAG or the partnership cities. Given the level of analysis that might be necessary to modify the model to analyze such a network, this is not included in this scope as it is difficult to quantify the level of effort necessary to modify the model for an as yet undefined transportation network. 4.2.3.Develop VMT Assessment Methodology VMT will be calculated based on the number trips between O-D pairs and the distance of those trips. The distance between each O-D pair will be determined from the shortest time path through .the congested network as determined in the final iteration of highway assignment. Distance corrections might be necessary for those trips with an origin or destination outside the region boundary, and for trips within the same municipality. The VMT estimates for each O-D pair will be allocated to specific municipalities based on a 50-50 split (i.e., VMT is allocated equally between origin and destination) unless SANBAG would like to use a different methodology. The use of the 50-50 split provides a balance between trip generators and trip attractors, and avoids the allocation of through trips to municipalities that are simply conduits for trips. As a result, it enables the evaluation of emission reduction strategies that might be targeted at individual municipalities. The allocation of VMT by vehicle and speed class will be allocated to local jurisdictions by comparing a GIS layer of jurisdiction boundaries with the GIS description of the model TAZs. Travel data associated with origin or destination TAZs will be allocated to jurisdiction in proportion to the amount of area of each TAZ in a jurisdiction. DKS will also work with the other project participants to define an appropriate set of performance measures from the modeling process and a,format for reporting.those measures that best facilitate the development of GHG emissions estimates or other environmental performance measures. 4.2.4. Setup and Run TDM DKS will acquire and use the SCAG model that was used in the development of the 2008 RTP update. DKS will prepare the SCAG TransCAD model for the baseline modeling of the six scenarios. Three of these have been defined previously, but a fourth could include alternative C 10144-dab.doc 4901000 A A transportation facilities and services that can be represented in the SCAG model. DKS will prepare runs of the model for these four baseline scenarios and provide the appropriate output measures and defined in Task 4.2.1. • Enter land use and transportation network inputs. DKS will work with the project team: to define the land use and transportation inputs for each scenario. DKS will then apply the land use allocations and perform network coding as necessary, translating the scenario elements into TransCAD model inputs compatible with the SCAG networks, land use/socio-economic databases and TAZ structure. • Run model for four initial scenarios. DKS will prepare model runs for each SCAG model time 'r1 period (AM Peak, PM Peak, midday and night) for each scenario. Preliminary results of each scenario will be distributed for review by a Technical Advisory Committee and the scenarios will be refined if necessary. For any scenario that is modified, a final set of model runs will be produced. • Provide VMT, VHT, speed data, trip characteristics, and other outputs for up to four scenarios (without VMT reduction strategies) summed by trip origin & destination TAZ and by jurisdiction. For the final set of model runs for each scenarios, DKS will produce the full set of performance measures agreed to in Task 4.2.1 (in the previous agreed format). The, selected measures of effectiveness (e.g., VMT, VHT and speed data)will.be summed by trip origin and destination TAZ and summed by jurisdiction. • Run two additional reduction scenarios to quantify VMT results. DKS will set up and run the TDM Effectiveness Evaluation Model (TEEM) for evaluation of the trip and VMT reduction, measures. Preliminary results of each scenario will be distributed for review by a Technical: Advisory Committee; the scenarios will be refined if necessary. For any scenario that is modified, a final set of model runs will be produced. For the final set of model runs for each, scenario, DKS will produce the full set of performance measures agreed to in Task 4.2.1 . and in the format agreed to. 4.2.5. Calculate Emissions and Reductions We will use EMFAC2007 to calculate emissions from CO2 and CH4. EMFAC2007 does note currently estimate emissions of N20. To evaluate the impact of the recently proposed national; CAFE standards, we will adjust the emission factors for each model year of each vehicle type! based on the default fuel efficiency in EMFAC2007 and the revised fuel efficiency from the new' standards. We will consider a business as usual case in EMFAC2007 and the proposed; national CAFE standards (which will be assumed to be equivalent to the AB 1493 scenario).: We will use EMFAC2007's default vehicle age distribution to estimate composite emission factors by vehicle type, unless we are able to obtain more specific vehicle age distributions for the study region. For many of the transportation reduction measures, it will be necessary to estimate the amount of VMT reduced in order to estimate the impact on GHG emissions. Some measures may' require estimation of other parameters, such as a reduction in congestion or freight mode shift from truck to rail. ICF has recently conducted relevant analysis for the City of Los Angeles: We evaluated the net GHG emissions reduced from several types of transit services provided by the City., including the Commuter Express and the Downtown DASH, by estimating the automobile trips reduced by expanding these systems. Where appropriate, we will follow American Public Transportation Association's recently released "Recommended Practice, for, Quantifying Greenhouse Gas Emissions from Transit". We will calculate the emissions reduced C 10144-dab.doc 4901000 2C by regional transit services. We will also adapt the protocol as needed to calculate emissions savings possible from specific transit measures. (The protocol is .primarily intended to support the development of inventories.) Estimates will include the GHG impact of .transit, measures through mode shift, congestion reduction; and compact development, as ,appropriate. Ridership impacts of specific transit services should be provided by transit agencies. We will .use DKS' TDM Effectiveness Evaluation Model (TEEM) to evaluate trip reduction for passenger travel for up to two transportation scenarios. TEEM uses baseline travel information by mode from a regional,or countywide model to determine base mode shares by trip end. Changes in trip ends by mode that result from TDM strategies can be used to modify vehicle trip tables by time period. The modified trip tables can be used in new traffic assignments to estimate the impacts of the TDM programs of traffic flows on links in the network. TEEM is designed to ' evaluate the potential effectiveness of seventeen different TDM strategies by predicting changes in AM Peak vehicle trips, daily vehicle trips, VMT, and person throughput. Each of the seventeen strategies can .be tested either individually or in combinations. TEEM uses effectiveness factors for TDM strategies that are derived 'from national research on TDM applications. Task 4.3 Goods Movement Goods movement is a significant source of GHG emissions.in San Bernardino County. Southern California is the nation's largest gateway for international trade, and a large portion of containers imported through the Ports of Los Angeles and Long Beach pass through the County on trucks and trains. The County also has Southern California's largest concentration of warehousing activity, in the vicinity of Ontario Airport. Over the last 20 years, GHG emissions from goods movement have grown rapidly due to strong growth in freight demand coupled with relatively modest improvement in the fuel efficiency of trucks, locomotives;: and other goods movement equipment. Opportunities to-reduce goods movement emissions in-San Bernardino County are somewhat limited because of the long-distance nature of much of the traffic, limited jurisdictional authority over private freight carriers, and the strong link between goods"movement and -the regional economy. Nonetheless, a comprehensive climate change strategy should address the goods movement sector. ICF will identify strategies for reducing goods movement GHG emissions and, to the extent possible, quantify the impact of these strategies on regional GHG , emissions. Some of the most promising strategies are regional in nature, and therefore outside direct control of San Bernardino County city.governments. For example, the Regional Transportation Plan includes a system of dedicated truck lanes for low emission trucks-that might pass through San Bernardino County. Building off its Multi-County Goods Movement Action Plan, SCAG is currently developing a Comprehensive Regional Goods Movement Plan that- will further evaluate options for major investment in goods movement corridors, including both truck lanes and freight rail system improvements. ICF is part of the consultant team developing this plan, so we will be able to make use of any interim products that assist in development GHG strategies. Other GHG reduction strategies for goods movement are more local in nature. For example, modifying loading/unloading practices ,at warehouses can help reduce .truck idling emissions. Local governments can also take steps to encourage use of biodiesel and other low carbon fuels, not only-by their municipal fleets but also by ,private fleets that operate in their borders. In some cases, roadway system efficiency improvements can reduce truck emissions, including elimination of railroad at-grade crossings and traffic flow improvements. There are also opportunities to reduce GHG emissions from goods movement equipment that operates within terminals and warehouses, including forklifts and the cargo handling equipment at C 10144-dab.doc 4901000 �1 I I 1 I rail yards. We will first develop a comprehensive list of goods movement emission reduction strategies, then discuss with the SBRCP which short list of strategies are worthy of inclusion. We will quantify the GHG benefits of the short list of strategies to the greatest extent possible, given data limitations. For example, it would be relatively easy to estimate GHG impacts from local strategies that reduce truck idling or VMT. Quantifying the GHG impacts of strategies that, change truck or railroad speed and congestion levels would likely require regional network modeling, and could only be done if supported by SCAG or SANBAG modeling. For strategies that would be implemented at a large number of locations in the County, like warehouses, we would need to obtain additional data from SANBAG or SCAG on the number and size[ of j warehouses and obtain detailed information from the SCAG truck model'. Task 4.4 Waste Although many of the landfills in the County are owned and operated by the County government and by private entities, the waste deposited 'in these landfills is generated throughout the County. To address both reductions that can be achieved at the landfill site as well as through, individual practices, we will evaluate emissions from solid waste management for the region using two methods: 1) site-based emissions (e.g., direct emissions from a specific landfill regardless of where the waste originated) and 2) population-based emissions (e.g., indirect! emissions associated with waste generated in the region, regardless of where that waste is disposed). We will avoid potential double counting issues by including only the direct or the' indirect emissions in the final inventory results, although both emissions estimates may;be included for informational purposes. ' The site-based approach can identify landfills that may be candidates for methane flaring or, capture. The population-based estimates can identify opportunities for regional or city-wide; waste reduction measures through source reduction, recycling, or composting. In broth! methodologies, the first order decay equation presented in EPA's AP-42 guidance (U.S. EPA' s` 1990) and- implemented in the U.S. Inventory and EPA's State Inventory Tool can be applied.' This type of equation calculates the emissions from waste disposal over a period of time. Task 4.5 Industrial and Stationary Sources Additional GHG emissions occur as a result of stationary fuel combustion from industrial and' other activities. Stationary combustion sources are non-mobile sources emitting GHGs from! fuel combustion. Typical stationary sources include power plants manufacturing facilities, (including natural gas combustion for heating purposes). We will estimate GHG emissions from` fuel consumption according to California Climate Action Registry (CCAR) protocol, and CARB,' EPA, or IPCC where appropriate. Since these stationary sources are typically not unde(the control of individual cities, we will evaluate emissions and potential reduction measures at!the regional level. It is likely that the majority of the emission reductions for this sector will be attributed to state regulations. ICF has previously obtained stationary fuel consumption data from the SCAQMD for the entire County and its unincorporated areas, so there will little additional effort needed for this sector's data at a regional scale.- However, obtaining this data by end-use sector for individual cities;can be challenging. In Task 5.1, we will coordinate with the appropriate data providers to determine the best methodology for scaling this fuel consumption data by city. We can estimate ;fuel consumption for each city by distributing by population, residential/commercial/industrial square footage, residential/commercial/industrial electricity or natural gas consumption, or other appropriate methodologies. C 10 1 44-dab.doc r 4901000 Task 4.6 Building Energy An important source of city GHG emissions is indirect emissions from electricity consumption. Indirect emissions from electricity consumption„occur as a result of combustion of fossil fuels at power plants for electricity production. To estimate the emissions related to electricity" and natural gas consumption for each city, we will contact the utilities which provide electricity and natural gas- to the areas within the boundary of each city. We will request electricity and natural gas consumption by end-use sector (i.e., residential, commercial, industrial, and institutional). Electricity providers. in San Bernardino County include Southern California Edison, the City of Colton,. Bear Valley-Electric, and.the City of Needles. Natural gas providers include Southwest Gas Corporation. and the Southern California Gas. Company. - We have previously obtained electricity and natural gas consumption data from these utilities _J and have coordinated with their data collection efforts for preparation of the San Bernardino County GHG Inventory Report and GHG Emission Reduction Plan. We will-estimate' GHG emissions from electricity,and natural gas according to the CCAR protocol. We will use utility- specific electricity and natural gas emission factors where applicable, -and region-specific emission factors in all other cases. Task 5. Analysis and Greenhouse Gas Baseline Development for City External Inventories ICF will draw from its extensive experience in developing local, regional, state, and national GHG inventories to develop complete and accurate GHG inventories for each jurisdiction that utilize the best available data and are consistent with the-latest inventory methodologies and protocols. ICF has a large team of experts representing all major GHG inventory sources, including stationary and mobile energy consumption, agriculture, industrial processes, solid waste and-wastewater management, and land use, and land'use change and forestry. We are experts in developing spreadsheets-uniquely suited to the San Bernardino County cities' needs. Our experience in this arena and our reputation for developing transparent, user-friendly, Excel- based tools will allow us to efficiently produce an accurate, useful product that will provide value not only for the current year's inventory, but will .also support projecting emissions for 2020. We are also familiar with and have applied protocols from ICLEI, EPA, -the CCAR General Reporting Protocol, the Climate Registry (TCR), the CARB Local Government Operations Protocol, IPCC methodologies, and other sources in our work for clients in California. ICF's past work developing the EPA's Excel-based State Inventory'Tool, the annual EPA Inventory, of U.S. GHG Emissions and Sinks, and numerous other local, state, and regional, inventories and adaptation.analysis enables us-to draw,from a wide array'of spreadsheets that have already been developed with the calculations 'and factors necessary for the County's needs. Several of these products—the State Inventory Tool, the EPA's Climate Leadership in Public Places, and EPA's Climate Change Emission Calculator Kit (Climate CHECK}—are GHG. inventory tools specifically designed to be user friendly, transparent, and simple to add data to in future years. Throughout the inventory_development, ICF will coordinate with the SBRCP to discuss inventory progress, discuss issues that emerge during the process, and make decisions when needed. Following receipt of the SBRCP's comments on the' draft inventories, ICF will submit final inventories to each jurisdiction. Our presumption is that the current year inventory will require a detailed level of disaggregation so as to support estimates of the emission reduction potential of individual measures. While developing the current year inventory for each city, ICF will collect relevant data on energy use and other GHG-emitting sources relevant to the city external inventories. C10144-dab.doc 4901000 The scope for this task includes one meeting to discuss the draft External Inventory Report with SBRCP in which two key representatives from the ICF team will attend in person. Additional;in person meetings are presumed to be;outside of the scope of this task. Task 5.1 External Inventories ' Complete the necessary data acquisition and analysis to finish the External GHG Inventories for each city for the current year according to the detailed scope agreed to in Task 2.5 for activities relevant to each city's inventory that are not already evaluated as regional emissions in Task!4. Scale the regional emissions sources (i.e., water, transportation, goods movement, waste, and stationary fuel combustion) to the city-level, as appropriate for each sector, so that these sources can be integrated into the individual city External GHG Reduction Plans. After identifying any gaps in data availability, ICF will work with SBRCP to determine if any gaps can be filled by the cities' data. For missing dataJCF will likely recommend the use of historical census data; economic reports, and state-level activity data. ICF will submit a memo to the SBRCP identifying the missing data and proposing a methodology for estimating these missing data. Task 5.2"Business-as-Usual"Projections Once the draft current year inventories are complete, we will produce the -necessary, "businesses- usual" projections of external emissions for 2020. Using the current year emissions inventories, land use types, and population growth estimates provided by the cities, County, SCAG, and/or the State Department of Finance, ICF will prepare projected inventories for 2020 for external sources in each of the jurisdictions. ICF will work with each city to identify' the most plausible "business-as-usual" activity projections. ICF is currently working on similar projects for San Bernardino County and the DVRPC. In these cases, ICF is using traffic projections from DVRPC's and SCAG's regional transportation plan, as well as DVRPC's and; SCAG's population, housing, and economic projections to estimate future activities. We are also drawing from state and national projections on energy use and other key trends. ICF has, also developed a module as part of the EPA's State Inventory Tool that helps states forecast, future emissions to 2020 based on national projections and historical trends. ICF will review the forecasted data available from the San Bernardino County cities and the: methods used in other forecasting efforts. We will then outline an approach for forecasting and; present those to the SBRCP. After discussing this approach with the SBRCP, ICF will proceed with the calculation of forecasted emissions using the same methodologies employed in -the' current year inventory. ICF will submit draft 2020 inventory forecasts to SBRCP, and following, receipt of the SBRCP's comments on the draft inventories, ICF will submit a final forecast for 2020. Projected GHG emissions inventories- will be for "business-as-usual" projections, without any reduction measures in place. Task 5.3 Produce Draft External Inventory Report This task will involve combining the results of Tasks 5.1, 5.2, and 5.3 into the combined External Inventory Report for all cities and delivering it to the SBRCP for review. Task 5.4 Revise External Inventory Report Revise the draft External Inventory Report according to client review and circulate' for SBRCP review. Task 5.5 Produce Final External Inventory,Report This task includes incorporating a final round of revisions responding to the SBRCP reviews;and any other feedback provided. C10144-dab.doc 4901000 I 2� Task 6. Development of City External GHG Reduction Goals and Strategies To develop each city's External GHG -Reduction Plans, it is first necessary to generate a projection of emissions in the target year(i.e., 2020) that is sufficiently disaggregated to support the quantification of emission reduction measures that typically act only on a particular sector-or end use. Existing and proposed emission reduction measures are then analyzed for their impact on emissions in 2020 and•a portfolio is developed that meets the target of bringing emissions back down to identified reduction goal. � We break down reduction measures into the following categories: • Federal measures; • State/regional measures; • Local measures; and Unquantifiable measures or measures under the jurisdiction of third parties (such as water districts). By virtue of its direct control over internal operations, a city can more easily take the necessary actions and make the necessary investments to reduce emissions from its internal operations. Decisions to retrofit the local government's building stock, to convert the vehicle fleet to more efficient and cleaner vehicles, or to install LED traffic lights, etc., can be made internally. Most often the investments are cost effective, make good business sense for the local authority, and the most significant barrier to implementation is simply identifying the opportunities and overcoming the"first cost" required to achieve the longer term savings. In contrast, the level of GHG emissions'from external sources is the result of myriad factors over which the city often has only partial control or influence. Preparing an,external emissions -- reduction plan requires approximations and estimates of energy use and emissions at the community-wide level: Energy consumption data may not be available in a format that corresponds to local jurisdictional boundaries, and in the case of transportation emissions the problem is compounded by .the fact that emissions result from traffic volumes and patterns, which are typically best understood and analyzed at a metropolitan region level. While we set out our general approach to this work here, every local application of the method is different. The scope for this task includes .two meetings with SBRCP to review the draft External Reduction Plan, at each of which two. key representatives from the ICF team will attend in person. Additional in person meetings requiring ICF travel are presumed to be outside of the scope of this task. Task 6.1 External GHG Reductions Measures will be identified that can'be taken by the individual jurisdictions in the SBRCP for reducing emissions-that are within the scope of each city's External Reduction Plan. Measures suggested by city staff will be supplemented by ICF's own database and experience in developing GHG reduction strategies for governments of all levels. Emissions reduction measures for regional sources will be included, as appropriate, scaled to the city-level as determined in Task 1.4. Task 6.2 Administrative Draft GHG Emission Reduction Plan A draft External GHG Reduction Plan will be developed that includes the individual External GHG Reduction Plans for each city. Task 6.3 Draft External GHG Emission Reduction Plan Revisions to the administrative draft document,will be made as required in response to the reviews in Task 6.2. C10144-dab.doc 4901000 i Task 6.4 Final External GHG Emission Reduction Plan Once all comments have been received, ICF will prepare the final External GHG Reduction Plan, incorporating all mitigation measures and pertinent comments received. Task 7. Evaluation of GHG Reduction Strategy Feasibility and Cost Effectiveness ICF will initiate this task by analyzing each of the recommendations from the External GHG Reduction Plans with regards to their implementation potential. We can provide an evaluation of the potential for implementing the proposed actions, including the forecast of maximum likely penetration rates or scenarios among target sectors. We can also identify potential bottlenecks that inhibit additional penetration of an action in a sector. This is especially important given the current economic recession. As a result, ICF will consider the implementation timing of policies.; and programs that exert, or could exert, additional fiscal pressure on the government or the private sector. The scope for this task does not include any in person meetings with SBRCP. Any in person meetings for this task that require ICF travel are presumed to be outside of the scope-of ! this task. Task 7.1. Identify Societal Costs/Benefits of Climate Action Measures ICF will first identify the societal benefits and costs of a sample of prioritized climate action measures. Costs that will be considered include those related 'to: regulations, industry compliance, social welfare, and other',indirect. In cases where measurements of impacts are not available, we will evaluate the benefits and costs qualitatively. In most cases, we will be able:to calculate the net present value, which is the difference between the discounted stream':of benefits and costs. For an appropriate economic assessment, we will need to subtract fiscal effects (such as taxes, subsidies, and duties) because these constitute a transfer and not use of resources. Whenever applicable, ICF calculations will account for fuel savings and energy savings benefits (i.e., cost savings) associated with the climate action measure. Finally, we will ' conduct sensitivity analyses, including a presentation of upper and lower bounds of the benefits and costs using different assumptions for the measure evaluated. A benefit of climate change mitigation is the associated environmental improvement and other "non-market" impacts such as health benefits, reduction of air pollutants, and habitat' improvements. ICF economists are experts at estimating the monetary value of goods and services that are not bought or sold in a market. Due to this lack of market activity,,-.no information exists on the true social value of these goods and services. We frequently use nonmarket methodologies, including hedonic pricing, benefits transfer; and avoided cost to evaluate policies that affect environmental goods and services. We also evaluate the value created 'by new "green" jobs, as well as the impacts on certain industries from the shifting job market. ICF staff is up to date on the most recent benefit transfer methods and studies as they relate to climate change. Benefit transfer refers to the practice of taking the monetary benefits that were: estimated by non-market valuation methods for a particular environmental resource and applying them to a different resource. In a study for the EPA, ICF used its expertise in nonmarket valuation to create a database for the state-of-the-art benefit transfer methodology.! The database ICF created for the EPA reviewed and summarized the most prominent ben'efit� transfer studies that had recently appeared in peer-reviewed journals, books, and: private-sector studies. C10144 dab.doc G 4901000 2E Task 7.2. Develop Impact Model As part of this task, ICF will create, a model that illustrates expected impacts associated with various climate action measures, as determined in Task 7.1. This model will include both qualitative and quantitative elements and can be used by the SBRCP to articulate the expected costs and benefits associated with each climate action measure. Whenever possible, ICF .will present quantitative impacts and we will develop a spread sheet based calculator that will allow the SBRCP to evaluate the expected impacts. The calculator will use cost savings estimates and job creation 'multipliers as well as any other quantifiable costbenefit ratio data from the previous task. The calculator will accept user inputs related to type of project and amount of funding and will then estimate the generated employment and other associated costs/benefits. PBS&J Scope of Work Project understanding The potentially participating cities within San Bernardino County, the San Bernardino Association of Governments (SANBAG), and San Bernardino Courity seek highly experienced consultants to assist the cities, SANBAG, and the County in developing and adopting a regional GHG reduction plan and associated Environmental Impact Report (EIR) that provides sufficient detail to be useful to each participating city and includes GHG reduction goals consistent with the State of California's global warming solutions and GHG reduction targets. In 2006, the Governor of California signed AB 32, which charged the California Air Resources Board (CARE) to develop regulations on how the state would address global climate change and established a target of reducing greenhouse gas emissions down to 1990 levels by year 2020. The State Attorney General's Office and some environmental groups are asking local jurisdictions to analyze the impacts of individual projects on global warming as part of the California Environmental Quality Act (CEQA) process. CARE, California EPA, U.S. EPA, or other appropriate governmental organizations have not yet published thresholds for determining the significance of a project's potential contribution to global climate change in CEQA documents. The Attorney General's Office has specifically challenged Environmental Impact Reports for large projects and General Plan updates that do not contain an analysis of climate change, greenhouse gas emissions, reduction targets consistent with the State goals, and a comprehensive mitigation program that demonstrates how the local jurisdiction will reduce emissions to achieve the greenhouse gas reduction targets. -In addition, SB 375 calls for the integration of transportation, land use, and housing planning, and also establishes the reduction of greenhouse gas emissions as one of the overarching goals for regional planning. The Southern California Association of Governments (SCAG), working with the County Transportation Commissions (CTCs) and sub-regional association of governments, is responsible for implementing SB 375 within the SCAG's jurisdiction. Success_in this endeavor is dependent on collaboration with local jurisdictions throughout the region. The following discussion provides our approach on how the potential participating cities can take advantage of economies-of-scale, and build upon each other's strengths by jointly C10144-dab.doc 4901000 developing and adopting an EIR for the regional GHG reduction plan that provides a foundation to tier and streamline legally defensible CEQA analysis of climate change impacts of development projects, and provide a proactive approach to the,mandates of SB 375. Project Approach While the bulk of the tasks within the'following scope of work are typical of the EIR process, there are several integral tasks that insure that the participating cities will be able to use the regional GHG reduction plan and associated EIR to their full advantage. These tasks include technical oversight(peer review)of the regional GHG reduction plan to insure that; 1) The GHG emissions inventories are limited to those emission sources within each of the participating cities'jurisdictional land use authority, 2) That reduction strategies are reasonable and build upon each of the participating cities' strengths, 3) That the transportation related emission inventories and reduction measures provide enough detail to be useful in the SB 375 process, and 4) That the EIR for the regional reduction plan provides enough detail to be a foundation to tier ' and streamline legally defensible CEQA analysis of climate change impacts. This requires that the emissions inventories and reduction strategies are detailed enough to provide city specific information on each of the participating cities. Another aspect of oversight is negotiating with State Agencies, such as SCAQMD, CARB and the Attorney General's Office, in gaining acceptance of the GHG inventories and reduction strategies. This aspect of oversight is essential to use the regional GHG reduction plan and EIR as a foundation toward CEQA streamlining and substantiating a sub-regional reduction target and Sustainable Communities Strategy (SCS). The oversight process, both peer review and negotiations, has proved beneficial to the County during the drafting of the San Bernardino County GHG emissions inventories and reduction plan_process and will benefit the participating cities and SANBAG during this process as well. Another vital task is the development of CEQA thresholds and a streamlined CEQA analysis' methodology for GHG emissions based upon the regional GHG reduction plan EIR. This task will allow the participating. cities a consistent method of analysis that is legally defensible, streamlined, and avoids the onerous tiered threshold process drafted by SCAQMD and the CARE. The following provides details of all the tasks in this scope of work: Task 1: Technical Oversight and Peer Review This task provides technical oversight and peer review of ICF Jones & Stokes work product to insure appropriately assigned GHG emissions inventories, reasonable reduction measures that complements and builds upon each of the participating cities' strengths, transportation related emission inventories and reduction measures with enough detail to be useful in the SB 375 process, and insure independent quality assurance and control. C10144-dab.doc 4901000 2z Task 1A: Meeting with Cities,for Strategy Development This task includes conducting an initial meeting with the cities, County, SANBAG, ICF Jones & Stokes, and other participants in the regional partnership to discuss the proposed content of the work plan, schedule, budget, and communication protocols. Identify key data providers at each city'and at other agencies and discuss scoping issues around the external GHG Plan. Task 1 B: Peer Review of the ICF Scoping Issues Paper and Recommendations ICF Jones & Stokes will provide a scoping issues paper that will summarize the existing GHG emissions data for all of San Bernardino County, provided by SCAQMD, the participating cities and other reliable data sources including the County. ICF Jones and Stokes will also provide scoping issues for an internal planning tool and scoping issues on the external GHG reduction -- plans. PBS&J will provide peer review of these documents and make recommendations focused on the following: • Existing GHG emissions data and how the existing data can be appropriately integrated into the forthcoming GHG emission inventories and regional reduction plan. • How the transportation component of the forthcoming emissions inventories and reduction measures can have a reasonable level of detail to account for vehicle miles traveled (VMT) and trip reductions in the forthcoming GHG emission inventories and regional reduction plan. • Relevance and usability of the internal inventory planning tool and external reduction plan scope in relation to potential consequences and advantages of providing internal and external reduction plans. • List of any of the participating cities' Tier 1 high priority energy efficiency projects under the Department of Energy's (DOE) Energy Efficiency and Conservation Block Grant (EECBG) funding that should be included as reduction measures. • Any additional scoping issues not addressed in the ICF Jones & Stokes Scoping issues paper. PBS&J will provide the peer review and recommendations to the participating cities, SANBAG and San Bernardino County in advance of the meeting provided in the ICF Jones & Stokes Scope of Work andTask 1C below. Task 1C: Participation in the Finalization of Data Sources and Scoping Issues PBS&J will participate in the two meetings to finalize the data sources and scoping issues. At that meeting PBS&J will articulate any of the technical issues and recommended edits to the ICF data sources and scoping issues identified in Task 1 B and agreed to by the participating cities, SANBAG and the County. Task 1 D: Review of Candidate Measures for the External GHG Plans PBS&J will 'review the list of candidate measures provided by ICF Jones & Stokes for the External GHG Plans based upon the appropriate allocation and reasonableness of the candidate measures, and recommend any additional candidate measures that are _not on the list. C10144-dab.doc 4901000 �n Task 1 E: Review of Local and Regional GHG Reduction Strategies PBS&J will review the local and ,regional GHG reduction strategies provided by ICF Jones,& Stokes. According to ICF Jones & Stokes the local and regional GHG reduction strategies will include the following: 1. Water conservation 2. On Road transportation reductions'including a. Defining land use strategies b. SCAG RTP Transportation scenarios c. VMT assessment methodology d. Travel Demand Model setup and runes . e. Emissions calculations based upon the above criteria 3. Goods movement a. On Road goods movement b. Rail c. Air freight d. Travel Demand Model setup and runes e. Emissions calculations based upon the above criteria 4. Solid waste reduction a. Waste diversion b. Landfill gas emissions management 5. Industrial and stationary source reductions 4 6. Energy efficiency of buildings 7. Renewable energy generation PBS&J will review the list of potential emission sources and reduction strategies provided' by ICF Jones & Stokes and make recommendations on the appropriate allocation of emission sources and what sources should be included in the-inventories and reduction strategies, as- Scope 1 or Scope 2 sources attributable to the participating cities and what sources should only, be called out as Scope 3 sources that each of the participating cities_ cannot control.; Potential Scope 3 sources include high global warming potential-gases in refrigeration and. electrical equipment, rail-yard emissions, electrical generation by entities other than ;the: participating cities, international and national air traffic. PBSU will also review the on road, transportation components, and make recommendations as appropriate, to provide sufficient detail to support a subregional reduction target and SCS recommendation to SCAG for the sub- region in the SB 375 process. PBS&J will review all the reduction strategies for reasonableness and appropriate allocation. Finally, PBS&J will recommend any additional reduction strategies that are found to be appropriate but missing from,those identified by ICF Jones & Stokes. Task IF: Review of Draft and Final GHG External Inventories PBS&J will review the GHG baseline external inventories provided by ICF Jones & Stokes; which should include all the appropriate emission sources described in Task 1 E above. Based upon the review in Task 1 E much of the inventory development will have been reviewed !and edited as appropriate. This task further refines the emission inventories for the appropriate allocation and reasonableness and will use the same evaluation criteria as defined in Task 1 E. C10144-dab.doc 4901000 3r The business as usual scenario will be evaluated based upon reasonable growth projections and General Plan buildout criteria. PBS&J. will make recommendations on the business as usual scenario to make it consistent with each of the General Plans for the participating cities. In this way, the regional GHG reduction plan will be consistent with each. of the participating cities' general plans. Task 1 G:,,Review of Draft and Final GHG Reduction Goals and Strategies. PBS&J will review the draft and final regional GHG reduction plan provided by ICF Jones & Stokes, which should include all the appropriate emission reduction strategies described in Task 1 E above. Based upon the review in Task 1 E much of the reduction development will,have been reviewed and edited as appropriate. This task further refines the reduction strategies for feasibility and reasonableness and will use the same evaluation criteria as defined in Task 1 E. Task 2: Act as Liaison and Technical Representative During Consultation with SCAQMD, CARB and/or the Attorney General Michael Hendrix of PBS&J. will attend .up to 'four (4) meetings with the SCAQMD staff at SCAQMD offices in Diamond Bar, and up to four (4) meetings with the CARB or Attorney General's Office to consult with these state agencies to advocate the appropriate scope and adequacy of forthcoming emissions inventories and regional'GHG reduction plan. In addition to meetings, additional consultation will occur through written correspondence .and telephone conversations. Task 3: Environmental Impact Report Under this task PBS&J will provide all aspects of the CEQA process from .the notice of Preparation to adoption of the Environmental Impact Report (EIR). Task 3A includes a draft Memorandum of Understanding that documents the cooperation of each of the participating cities into the joint effort of adopting a regional GHG reduction plan, designates the authority of each participating city as an independent Lead Agency in the adoption of the regional GHG reduction plan and associated EIR, and provides the-context of the joint effort and how that joint effort relates to each of the participating cities jurisdictions. The project description further defines the role of each city in the joint participation of a regional reduction plan and how together the participating cities meet the reduction target designated in the regional reduction plan. The forthcoming. project description will further provide details on each of the participating cities' individual emissions inventories, reduction measures and how these individual inventories and measures combine into the regional reduction plan to meet the reduction target. The EIR will then analyze at a programmatic level the potential impacts the regional reduction plan may generate.' Potential impacts may include, localized traffic, air quality, and noise impacts associated with mixed use and transit oriented development designed to reduce VMT and vehicle trips on a regional level. Other potential impacts include historical resources that could be impacted as a result of energy efficiency retrofits. Alternative energy sources such as solar in close proximity to airports will be evaluated for potential safety issues related to reflectivity of photovoltaic cells. Infrastructure needs of alternative energy generation will also be reviewed. Reasonable mitigation measures will be recommended to reduce these potential impacts to less than significant whenever feasible. In many cases, the proposed project will. provide environmentally beneficial impacts to water supply, regional air quality, and regional transportation. Environmentally beneficial impacts will be evaluated as well. C10144-dab.doc 4901000 '21 The following describes each of the tasks needed to draft, finalize and adopt the EIR: Task 3A: Draft Memorandum of Understanding (MOU) PBS&J will meet with the participating cities, SANBAG, the County and other participants in the regional partnership to discuss the proposed content and format of a draft MOU that describes the cooperation of each of the participating cities into the joint effort of adopting a regional GHG ' reduction plan, designates the authority of each participating city as an independent Lead Agency in the adoption of,the regional GHG reduction plan and associated EIR, and provides the context of the joint effort and how that joint effort relates to each of the participating cities' jurisdictions. Based upon the information provided in the meeting, within two weeks, PBS&J will ! '~ draft the MOU as described above and provide the draft to each of the participants in the ' regional partnership for one round of edits/reviews. PBS&J will then provide to each of the participants in the regional partnership a revised draft MOU based upon the edits and; comments received. The revised draft MOU will be provided within two weeks of receiving one round of edits/comments from all the participants in the regional partnership. Additional edits are out of scope and will be provided on a time and materials.basis. Task 313: Notice of Preparation PBS&J will prepare and distribute a Notice of Preparation (NOP) to inform the 1 State Clearinghouse, local agencies, and the public (up to 150 parties) that the lead agencies; are preparing an EIR for this project. PBS&J will work with the lead agencies to develop the distribution list. State agencies will be informed through the State Clearinghouse. The NOP will' be released once the lead agencies believe that it accurately describes the proposed project., List of Products: • Provide one (1)electronic copy of the NOP for internal review prior to publication. • Provide up to seventy-five (150)copies of the NOP for public distribution to the list of recipients provided by the lead agencies. • Mail fifteen (15) copies of the NOP to the State Clearinghouse. • Mail remaining copies to list of recipients provided by the lead agencies. Task 3C: Administrative Draft EIR PBS&J will prepare an Administrative Draft EIR (ADEIR) document based on the current CEQA Guidelines and the lead agencies' specific directions. The document will include an Introduction that will present the purpose and intent of the EIR, including the overall environmental review process. Effects found to be not significant will be specifically listed. The project sponsors and contact persons will be identified. It will also include an Executive Summary, which is a brief synopsis of the major findings of the EIR. One of the fundamental components of the EIR will be a comprehensive description of,the project. The project description defines the role of each city in the joint participation of a regional reduction plan and how together the participating cities meet the reduction target designated in the regional reduction plan. It is important to provide a clear understanding of the regional partnership. The forthcoming project description will further provide details on each of the participating cities' individual emissions inventories, reduction measures and how these individual inventories and measures combine into the regional reduction plan to meet the reduction target. C10144-dab.doc 4901000 3: PBSBJ will document baseline conditions, conduct impact evaluations, and formulate mitigation measures for any potentially 'significant impacts that may be identified. The emphasis will be on, the identification of significant impacts that would result from project implementation. Impact significance will be determined by, defining the changes to the environmental baseline that would result from project implementation and comparing that changed environmental condition to a standard or threshold of significance. Impacts will be evaluated in proportion to their severity and probability of occurrence. Thresholds of significance will be based on any such standards that have been officially adopted by the lead agency-or other public agencies with primary authority relative to the impact in question, and/or those thresholds set forth in the current State CEQA Guidelines. Where impacts are found to be significant, PBSBJ will develop measures to mitigate such effects to below a level of significance, if feasible. All recommended mitigation measures will be defined to represent a close nexus between the measure and a legitimate governmental interest, and will be directly proportional to the level of impact resulting from the project. The following sections, outline the PBSBJ approach to the analysis of each „ particular environmental impact topic that may be addressed in the EIR. The topics listed below are not presented in order of importance but alphabetically as they would be discussed in the, document. Agricultural Resources. PBSBJ will evaluate on a programmatic level the regional reduction plans impacts, if any, on agricultural resources. It is.anticipated that the regional reduction plan will have no impacts on agricultural resources. Aesthetics. This section will describe and evaluate on a programmatic level the overall visual character of specific reduction measures including the placement of photovoltaic solar cells, wind turbines, and any potential aesthetic impacts associated with retrofitting existing buildings. " Programmatic mitigation measures will be recommended to reduce impacts to less than significant whenever feasible. Air Quality. PBSBJ will describe how the project will reduce criteria air pollutants on a regional level, but may impose localized impacts due to particular reduction strategies. Reduction strategies associated with land use such as mixed use and transit oriented development may reduce VMT and vehicle trips on a regional level, but increase air pollutants in the immediate vicinity, of these types of land uses. PBSBJ will evaluate on a programmatic level potential localized air quality impacts generated by specific GHG reduction strategies using the methodologies established by SCAQMD in their,latest CEQA guidelines. PBSBJ will compare" estimated emissions to district thresholds to'determine if construction or operation activities of the project will exceed local significance criteria. PBSBJ will recommend programmatic mitigation measures as appropriate to reduce localized impacts to the greatest extent feasible. PBSBJ will also describe the project's potential reduction in GHG emissions and the benefit of reducing the region's incremental contribution to global climate change. Biological Resources. PBSBJ will provide an analysis of the project's impacts on biological resources associated with renewable energy projects on vacant lands in areas with.potential to contain vital habitat or migration corridors. Programmatic mitigation measures will be recommended.to reduce impacts to less than significant whenever feasible. Cultural Resources. Energy efficiency retrofits of historic buildings have the potential to degrade the historic integrity of the buildings. PBSBJ will evaluate on programmatic level C 10144-dab.doc 4901000 I 1 potential impacts and recommend mitigation to reduce any identified impacts to less I than significant. ' Geology and Soils. PBS&J will use fault zone maps, soil maps and earth-related conditions identified in General Plans to identify areas of regional and local faults, liquefaction, subsidence, compaction, shrink/swell, etc. for renewable energy projects to avoid. PBS&J will also use soils information from the federal Natural Resources Conservation Service as necessary to complete + this work. Hazards and Hazardous Materials. PBS&J will evaluate the potential of photovoltaic cells , placed on roofs along, the designated flight paths and within the safety zones of airports;to reflect light and create a safety hazard to air traffic. PBS&J will recommend mitigation to reduce any identified impacts to less than significant. Hydrology and Water Quality. PBS&J will evaluate on a programmatic level the regional reduction plans impacts, on water resources .and water quality. It is anticipated that the regional reduction plan will have beneficial environmental impacts on water resources through reduction measures that provide water conservation. Land Use and Planning. PBS&J will evaluate the project's consistency with the participating cities' and County general plans and zoning requirements. PBS&J will examine the project relative to all of its proposed land use approvals. Mineral Resources. PBS&J will evaluate on a programmatic level the regional reduction plans 1 impacts, if any' on mineral resources. It is anticipated that the regional reduction plan's only; impact to mineral resources is the reduced demand for aggregate associated with reduction, measures that recycle construction and demolition debris to be used as building materials. Noise. Localized noise impacts associated with placing noise sources in close proximity to! noise sensitive land,uses as a result of increased mixed use and transit oriented development; will 'be evaluated on a programmatic level and mitigation measures recommended to reduce, impacts to less than significant. i Population and Housing. PBS&'J will evaluate the project's potential impacts to local ands regional population and housing resources. Public Services. PBS&J will work.with the lead agencies staff as appropriate to evaluate direct and indirect impacts of the reduction measures in the regional-reduction plan on existing or planned public services (e.g., police; fire, etc.). Recreation. PBS&J will evaluate on a programmatic level the regional reduction plans impacts; if any, on recreational resources. It is anticipated that the regional reduction plan will have no impacts on recreation. Transportation and Circulation. PBS&J will use the data from the Traffic Modeling prepared by ICF Jones & Stokes as part of Task 4.2 in their scope of work to evaluate regional traffic impacts. PBS&J will provide localized analysis of potential impacts to Level of Service (LOS) in close proximity to transit oriented development. The EIR analysis will weigh the regional benefits of reduced vehicle trips and VMT associated with transit oriented development with the localized impacts to LOS in the immediate vicinity of these sites. 4 I C10144-dab.doc 4901000 3,4 Utilities and Service Systems.. PBS&J will evaluate on a programmatic level the potential impacts to utility infrastructure associated with increased renewable energy generation and the placement of renewable energy projects. PBS&J will recommend mitigation measures to reduce potential impacts to utility infrastructure: PBS&J will also evaluate potential impacts, if any, on the existing water conveyance infrastructure associated with water conservation reduction measures. Project Alternatives. Based on any potential impacts identified for the -project, or alternative project scenarios to be considered by the lead agencies, PBS&J will develop appropriate alternatives to reduce or eliminate significant impacts. PBS&J will evaluate up to three alternatives, including a no-project alternative. Mandatory Findings of Significance. PBS&J will summarize the results of the environmental analyses to determine if any direct or indirect impacts of the project will cause significant harm to natural or man-made resources, consistent with the latest requirements of CEQA. Cumulative Impacts. PBS&J will work in conjunction with lead agencies staff to develop a cumulative projects list. PBS&J will also use the most recent changes. CEQA to analyze potential cumulative impacts associated with the regional reduction plan. PBS&J will also examine potential growth'inducing impacts of the project. List of Products: • Provide up to three (3) printed and bound copies of the ADEIR to each participating city, SANBAG, the County, and any other participants in the,regional reduction,plan an electronic copy of the ADEIR. We assume two iterations-of the ADEIR before the document is approved for public distribution. Task 3D: Draft EIR Ready for Public Distribution Following receipt of lead agencies' comments on the Administrative Draft EIR, PBS&J staff will revise the document to,produce a Draft EIR document suitable for circulation and 45-day public review. PBS&J assumes a maximum of two review cycles,with compiled comments to convert the administrative document to a draft document suitable for circulation. Additional review cycles will require an adjustment to the contract. The Notice of Completion (NOC)for the Draft EIR will be filed with the State Clearinghouse with the Draft EIR. The Notice of Availability (NOA) of the Draft EIR will be sent via first class mail (with proof of receipt) to agencies and other parties to notify them that the Draft EIR is available for review. PBS&J, will provide 150 printed copies of the Draft EIR for public distribution, including appendices. PBS&J will distribute the Draft EIR to the State Clearinghouse, and up to 40 local public agencies. Additional copies will be made available at the offices of each of the lead agencies. The use of electronic versions of the document on CDs for all or portions of the EIR can reduce the direct expenses associated with this project. PBS&J will work with the lead agencies to evaluate the appropriateness of electronic distribution for use on'this project. List of Products: • Provide up to a total of 150 printed and bound copies of the Draft EIR and NOA. Technical appendices will be provided on CD-ROM in a pocket at the back of each document. Fewer copies may be required to be printed if demand is limited. C10144-dab.doc 4901000 �C f I f • Provide one (1) electronics copy of the Draft EIR and technical appendices to each of the lead agencies. • Mail 15 copies of the Draft EIR and NOC to the State Clearinghouse via overnight delivery. • Mail copies of the Draft EIR to identified recipients using a list provided by the lead agency. Mailing will be via first class mail with proof of delivery unless directed otherwise. • Mail copies of the NOA to identified recipients using a list provided by the lead agency. Mailing will be via first class mail with proof of delivery unless directed otherwise'. Task 3E: Final EIR PBS&J will prepare a Response to Comments document that will include responses to substantive issues raised on the Draft EIR, and include annotated comment letters. Up to '80 hours of professional staff time have been budgeted for this-task. Overly voluminous or detailed comments,may require additional time and a contract amendment. PBS&J will submit a screen check final EIR that will include Response to'Comments ,and descriptions of any revised material from those found in the, DEIR for internal review by each of the lead agencies. Upon receipt of lead agencies' comments, PBS&J will revise the Final EIR document and distribute to commenting agencies. List of Products: • f • Provide an electronic copy of the screen check Final EIR document to each of the; participating cities, SANBAG, and the County for internal review. 4 • Provide up-to 70 printed and bound copies of the Final EIR. Distribute necessary copies to recipients via first class mail using a list provided by the lead agency. Task 3F: Findings of Fact and Statements of Overriding Consideration i f PBS&J will prepare the written findings for each significant effect identified in the EIR, pursuant to Section 15091 of the State CEQA Guidelines, and the -Statement of Overriding Considerations (SOC), pursuant to Section 15093 of the-State CEQA Guidelines. The lead agency may provide the format for this document, or defer to PBS&J as to format. PBS&J will prepare draft findings-for each significant effect identified in the EIR and prepare an SOC if unavoidable significant impacts occur. As required by the State CEQA Guidelines, one of three; findings must be made for each significant effect and must be supported by substantial! evidence in the record. The SOC will rely on input from the lead agency and the project; applicant regarding the benefits of the project. The Draft Environmental Findings will be, submitted for internal review. Upon receipt of lead agency and applicant comments, the Draft Environmental Findings will be revised and resubmitted by email for lead agency use in, considering the project. Up to 80 hours of professional staff time have been budgeted for this' task. Extensive revisions that require additional time may result in the need for a contract. amendment. List of Products: • Provide each of the lead agencies up to three '(3) copies of the final Findings of Fact and Statement of Overriding Considerations and one (1)electronic copy for staff use. Task 3G: Notice of Determination The Notice of Determination (NOD)will be filed in person with the San Bernardino County Clerk of the Board within three business days of project approval. The lead agencies will provide the C10144-dab.doc 4901000 I 3( funds necessary for the CDFG filing fees at the time of the filing of the NOD. Following filing with the Clerk of the Board, the NOD will be_ sent via overnight mail to the State Clearinghouse for posting. List of Products: • Provide copies of the NOD for signature by each of the lead agencies. One copy will be filed with the County Clerk and the other will be sent to the State Clearinghouse via overnight delivery. The NOD's will be appropriately filed within 48 hours of project approval. The applicant and/or the lead agency are responsible for all filing fees (CDFG fee, County } processing fee). A check for these fees must be made available to PBSU at the time of project approval to avoid filing delays. Task 31-1: GHG,Significance Thresholds and CEQA Streamlining Methodology PBSU will provide CEQA Thresholds for climate change impacts based upon the regional GHG reduction plan and the Draft and Final EIR. The CEQA thresholds document will discuss the method for tiering CEQA analysis of future development projects by each of the lead agencies using the GHG emission inventories and reduction strategies. This tiering process affords a consistent, legally defensible way of streamlining future CEQA analysis of climate change impacts for individual projects. List of Products: • Provide each lead agency up to three-(3) printed and bound copies and one (1) electronic copy of the GHG Significance Thresholds and CEQA Streamlining Methodology document. C10144-dab.doc 4901000 '27 I I I Attachment"B" Cost Sharing City Population City Share ADELANTO 28,265 $15,695.59 APP �/AL ' �9 561 _'.+. 40.00 BARSTOW -24 213 $0.00 G.B ri r $14,654.63 NO $4,173 $28 960.11 �. 78 $27 959.88 COLTON 51,694 $0.00 I 1 $48 209.86 I GRAND TERRACE' 12,494 $15 799.25 h $29 696.52 HIGHLAND 52,372 $23121.55 i $17 659.00 MONTCLAIR 36,964 $20 292.70 $14 569.60 i ONTARIO 173188 $45 302.97 I $46137.97 i MRED!LAMNDS 71.646 $26 660.20 $31,869.94 SAN BERNARDINO 204,483 $51 048.83 $19166.88 UPLAND 75,035 $0.00 f $33 599.23 I I YUCAIPA 51,317 $22,927.86 i $117 405.84 f GRAND TOTAL 1,765,552 :553,737.22 i Eontribution: $553,737.22 AG contribution: S231.160.00 $784,897.22 `NOTE: $0.00 City Share indicates City is not participating C10144-dab.doc 4901000 ;s CALI'FORNIA AGENDA REPORT MEETING DATE: February 23, 2010 Council Item ( ) CRA Item (X) TITLE: Property Tax Consulting Services PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: Approve the attached Professional Consultant Services Agreement in the amount of $2,500 per year between the Agency and HdL Coren & Cone, for Property Tax Consulting Services. BACKGROUND: Property tax revenue received by the Agency is calculated by San Bernardino County, which should also include collection on annual assessments of projects in progress. The City provides copies of building permits to the Assessor's office as they are issued, which initiates the reassessment process. Appraisers from the Assessor's office are then required to visit each project site every January and when the permit is finaled. Any new value for tax assessment is established based on the percentage of the building complete at the time of inspection. In addition, reassessments also occur upon property transfer and at the property owner's request. Setting incremental increases in property values can be subject to the quality of information provided to the Assessor's office and available staff time to address each issue. DISCUSSION: Staff has recently observed that the County Tax Assessor's office may not have been able to follow through on new assessments of partially completed projects, and is therefore recommending an audit of tax assessments of properties within the Community Redevelopment Project Area, including collection and allocation of tax revenue. The company recommended, HdL Coren & Cone, is very experienced in working with government agencies to recover missed or misallocated property tax revenue. The firm has proposed to conduct on-going audits for$2,500 per year, plus 25% of the funds recovered. Staff is familiar with their work in other jurisdictions, which has included recovery of revenue that was misallocated to an incorrect entity. HdL currently provides annual sales tax data to the City. The attached Professional Consultant Services Agreement would expire on June 30, 2012, and, as proposed, allows the Agency Executive Director to extend the term up to two years. Staff recommends approval of the Agreement as a sole source contract without requesting additional CRA AGENDA ITEM NO. proposals. A progress report will be provided to the Agency Board in approximately four months, by June 30, 2010. FISCAL IMPACT: The cost to the Agency for the remainder of this fiscal year is $625.00, which is one-fourth of the annual fee. In subsequent years, funds will be appropriated through the annual budget process. At this time, it is difficult to predict what affect the audit may have on the Agency's property tax increment revenue. Respectfully submitted, Joyce Powers Community and Economic Development Director Manager Approval: Betsy . Adams City Manager and CRA Executive Director ATTACHMENT: Professional Consultant Services Agreement between the Agency and HdL Coren and Cone a PROFESSIONAL CONSULTANT SERVICES AGREEMENT The HdL Coren & Cone Property Tax Consulting/Audit Services THIS PROFESSIONAL CONSULTANT SERVICES AGREEMENT ("Agreement") is made and entered into this day of February, 2010, ("Effective Date") by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE ("Agency"), a public entity, and HdL Coren & Cone, a California Corporation, ("Consultant"). I. Scope of Services. Agency agrees to retain and does hereby retain Consultant and Consultant agrees to provide the services more particularly described in Exhibit "A", "Scope of Services and Fees", attached hereto and incorporated herein by reference, in conjunction with Property Tax Consulting/Audit Services ("Services"). 2. Term. This Agreement shall be effective on the date first written above unless otherwise provided in Exhibit "A" and the Agreement shall remain,in effect until June 30, 2012, unless otherwise terminated pursuant to.the provisions herein. This Agreement may be extended up to two years at the discretion of the Agency Executive Director. 3. Compensation/Payment. Consultant shall perform the Services under this Agreement for an annual fee of$2,500.00 (Two Thousand Five Hundred Dollars) plus 25% of property tax revenues recovered as the result of Consultants work, payable in accordance with the terms set forth in Exhibit "A". Said payment shall be made-in accordance with the Agency's usual accounting procedures upon receipt and approval of an invoice setting forth the services performed. The invoices shall be delivered to the Agency at the address set forth in Section 4 hereof. 4. _Notices. Any notices required to be given hereunder shall be-in,writing and shall be personally served or given by mail. Any notice given by mail shall be deemed given when deposited in the United States Mail, certified and postage prepaid, addressed to the party to be served as follows: To Agency: To Consultant: Grand Terrace Redevelopment Agency Paula J. Cone Attn: Joyce Powers HdL COREN&CONE 22795 Barton Road 1340 Valley Vista Drive #200 Grand Terrace, California,92313 Diamond Bar, California- 91765 5. Prevailing Wage. If applicable, Consultant and all subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the Page. 1 of 19 I I I California Labor Code and implemented the Agency Council of the Agency of Grand Terrace.; The Director's determination is on file and open to inspection in the office of the Agency Clerk! and is referred to and made a part hereof-, the wage rates therein ascertained, determined, an specified are referred to and made a part hereof as though fully set forth herein. { 6. Contract Administration. A designee of the Agency will be appointed to administer, this Agreement on behalf of the Agency and shall be referred to herein as Contract Administrator. 7. Standard of Performance. While performing the Services, Consultant shall exercise the reasonable professional care and skill customarily exercised by reputable members of Consultant's profession practicing in the Metropolitan Southern California Area, and shall;use reasonable diligence and best judgment while exercising its professional skill and expertise. k 8. Personnel. Consultant shall furnish all personnel necessary to perform the Services and shall be responsible for their performance and compensation. Consultant recognizes that the qualifications and experience of the personnel to be used are vital to professional and timely completion of the Services. The key personnel listed in Exhibit "B" attached hereto land incorporated herein by this reference and assigned to perform portions of the Services shall remain"assigned through completion of the Services, unless otherwise mutually agreed by the parties in writing, or caused by hardship or resignation in which case substitutes shall be subject to Agency approval. I � 9. Assignment and Subcontracting. Neither party shall transfer any right, interest, or obligation in or under this Agreement to any other entity without prior written consent of the other party. In any event, no assignment shall be made unless the assignee expressly assumes the ' obligations of assignor under this Agreement, in a writing satisfactory to the parties. Consultant shall not subcontract any portion of the work required by this Agreement without prior written approval by the responsible Agency's Contract Administrator. Subcontracts, if any, shall contain a provision,making them subject to all provisions stipulated in this Agreement, including without limitation, the insurance obligations set forth in Section 12. Consultant acknowledges that:any transfer of rights may require Agency Manager and/or Agency Council approval. 10. Independent Contractor. In the performance of this Agreement, Consultant,;and Consultant's employees, subcontractors and agents, shall act in an independent capacity as independent contractors, ,and not as officers or employees of the Agency of Grand Terrace. Consultant acknowledges and agrees that Agency has no obligation to pay or withhold state or federal taxes or to provide workers' compensation or unemployment insurance to Consultant, or' to Consultant's employees, subcontractors and agents. Consultant, as an independent contractor, shall be responsible for any and all taxes that apply to Consultant as an employer. 11.. Indemnification. Page 2 of 19 11.1 Indemnity. Except as to the sole negligence or willful misconduct of the Agency, Consultant shall defend, indemnify and hold the Agency, and its officers, employees and agents, harmless from any and all loss, damage, claim for damage, liability, expense or cost, including attorneys' fees, which arises out of or is in any way connected with the performance of work under this Agreement by Consultant or any of the Consultant's employees; agents or subcontractors and from all claims by Consultant's employees, subcontractors and agents for compensation for services rendered to Consultant in the performance of this Agreement, notwithstanding that the Agency and/or Agency may have benefitted from their services. This indemnification provision shall apply to any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of Consultant or of Consultant's employees, subcontractors or agents. Except as to the sole negligence or willful misconduct of the Consultant, Agency shall defend, indemnify and hold the Consultant, and its officers, employees and agents, harmless from any and all loss, damage, claim for damage, liability, expense or cost, including attorneys' fees, which arises out of or is in any way connected with the performance of work under this Agreement by Agency. This indemnification provision shall apply to any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of Agency and its employees, subcontractors or agents. 12. Insurance. 12.1 General Provisions. Prior to the Agency's execution of this Agreement, Consultant shall provide satisfactory evidence of, and shall thereafter maintain during the term of this Agreement, such insurance policies and coverages in the g types, limits, forms and ratings required herein. The rating and required insurance policies and coverages may be modified in writing by the Agency's Risk Manager or Agency Attorney, or a designee, unless such modification is prohibited by law. 12.1.1 Limitations. These minimum amounts of coverage shall not constitute any limitation or cap on Consultant's indemnification obligations under Section 11 hereof. 12.1.2 Ratings. Any insurance policy or coverage provided by Consultant or subcontractors as required by this Agreement shall be deemed inadequate and a material breach of this Agreement, unless such policy or coverage is issued by insurance companies authorized to transact insurance business in the State of California with a policy holder's rating of B+ or higher and a Financial Class of VII or higher. 12.1.3 Cancellation. The policies shall not be canceled unless thirty (30) days prior written notification of intended cancellation has been given to Agency•by certified or.registered mail, postage prepaid. Page 3 of 19 12.1.4 Adequacy. The Agency, its officers, employees and agents make ' no representation that the types or limits of insurance specified to be carried by Consultant pursuant to this Agreement are adequate to protect Consultant. If Consultant believes that any required insurance coverage is inadequate, Consultant will obtain such additional insurance coverage as Consultant deems adequate, at Consultant's sole expense. 12.2 Workers' Compensation Insurance: By executing this Agreement, Consultant certifies that Consultant is aware of and will comply with Section 3700 of the Labor Code of the State of California requiring every employer to be insured against liability for workers' compensation, or to undertake self-insurance before commencing any of the work. Consultant shall carry the insurance or provide for self-insurance required by California law to protect said .f Consultant from claims under the Workers' Compensation Act. Prior to Agency's execution of this Agreement, Consultant shall file with Agency either (1) a certificate of insurance showing that such insurance is in effect, or that Consultant is self-insured for such coverage, or (2) a certified statement that Consultant has no employees, and acknowledging that if Consultant does employ any person, the necessary certificate of insurance will immediately be filed with Agency. Any certificate filed with Agency shall provide that Agency will be given ten (10) days prior written notice before modification or cancellation thereof. 12.3 Automobile Insurance. Prior to Agency's execution of this Agreement, Consultant shall obtain, and shall thereafter maintain during the term of this Agreement, automobile liability insurance as required to insure Consultant against damages for personal injury, including accidental death, as well as from claims for property damage, which may arise from or which may concern operations by anyone directly or indirectly employed by, connected with, or acting for or on behalf of Consultant. The Agency, and its officers, employees and agents, shall be named as additional insureds under the Consultant's insurance policies. 12.3.1 Consultant's automobile liability policy shall cover both bodily injury and property damage in an amount not less than $500,000 per occurrence and an aggregate limit of not less than $1,000,000. All of Consultant's automobile and/or commercial general liabiliy insurance policies shall cover all vehicles used in connection with Consultant's performance of this Agreement, which vehicles shall include, but are not limited to, Consultant owned vehicles, Consultant leased vehicles, Consultant's employee vehicles, non-Consultant owned vehicles and hired vehicles. 12.12 Prior to Agency's execution of this Agreement, copies of insurance policies or original certificates and additional insured endorsements evidencing the coverage required by this Agreement, for automobile liability insurance, shall be filed with the Agency and shall include the Agency and its officers, employees and agents, as additional insureds. Said policies shall be in,the usual form of commercial general and automobile liability insurance policies; but shall include the following provisions: It is agreed that the Agency of Grand Terrace and its officers, employees and agents, are added as additional insureds under this policy, solely for work done by Page 4 of 19 and on behalf of the named insured for the Redevelopment Agency of the City of Grand Terrace. 12.4 Errors and Omissions Insurance. Prior to Agency's execution of this Agreement, Consultant shall obtain, and shall thereafter maintain during the term of this Agreement, errors and omissions professional liability insurance in the minimum amount of$1,000,000 to protect the Agency from claims resulting from the Consultant's activities. 12.5 Subcontractors' Insurance. Consultant shall require all of its subcontractors to carry insurance, in an amount sufficient to cover the risk of injury, damage or loss, that may be caused by the subcontractors' scope of work and activities provided in furtherance of this Agreement, including, but without limitation, the following coverages: Workers Compensation (except for a sole proprietor), Commercial General Liability, and Automobile liability. Upon Agency's request, Consultant shall- provide the Agency with satisfactory evidence that Subcontractors have obtained insurance policies and coverages required by this section. 13. Business Tax: Consultant understands that the Services performed under this Agreement constitutes doing business in the Agency of Grand Terrace, and Consultant agrees that Consultant will register for and pay a business tax pursuant to Chapter 5.04 of the Grand Terrace Municipal Code and keep such tax certificate current during the term of this Agreement. 14. Time of Essence. Time is of the essence for each and every provision of this Agreement. 15. Agency's Right to Employ Other Consultants. Agency reserves the right to employ other Consultants in connection with the Services. 16. Accounting Records. Consultant shall maintain complete and accurate records with respect to costs incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of Agency during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.. 17. Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other.materials either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant, except as otherwise directed by Agency's Contract Administrator. Nothing furnished to Consultant which is otherwise known to the Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use Agency's name or insignia, photographs of the Services, or any publicity pertaining to the Services or the Services in any magazine, trade paper, newspaper, television or radio production, website, or other similar medium without the prior written consent of the Agency. 18. Ownership of Documents. All contracts and invoices prepared under this Agreement by Consultant shall be and remain the property of Agency upon Agency's compensation to Consultant for its services as herein provided. Consultant shall not release to others information furnished by Agency without prior express written approval of Agency. 19. Conflict of Interest. Consultant, for itself and on behalf of the individuals listed in Exhibit "B", represents and warrants that by the execution of this Agreement, they have no interest, present or contemplated, in the Services affected by the above-described Services: Consultant further warrants that neither Consultant, nor the individuals listed in Exhibit"B"have any real property, business interests or income interests that will be affected by these services or, alternatively, that Consultant will file with the Agency an affidavit disclosing any such interest. u 20. Solicitation. Consultant warrants that Consultant has not employed or retained any person or Agency to solicit or secure this Agreement, nor has it entered into any agreement or understanding for a commission, percentage, brokerage, or contingent fee to be paid to secure this Agreement. For breach of this warranty, Agency shall have the right to terminate 'this Agreement without liability and pay Consultant only for the value of work Consultant;has actually performed, or, in its sole discretion, to deduct from the Agreement price or otherwise recover from Consultant the full amount of such commission, percentage, brokerage or commission fee. The remedies specified in this section shall be in addition to and not in lieu of those remedies otherwise specified in this Agreement. 21. General Compliance with Laws. Consultant shall keep fully informed of federal; state and local laws and ordinances and regulations which in any manner affect those employed by Consultant, or in any way affect the performance of services by Consultant pursuant to'this - Agreement. Consultant shall at all times observe and comply with all such laws, ordinances!and regulations, and shall be solely responsible for any failure to comply with all applicable laws, ordinances and regulations. 22. Amendments. This Agreement may be modified or amended only by a written Agreement and/or change order executed by the Consultant and Agency. 23. Termination. Agency, by notifying Consultant in writing, shall have the right to terminate any or all of Consultant's services and work covered by this Agreement at any time. In the event of such termination, Consultant may submit Consultant's final written statement of the amount of Consultant's services as of the date of such termination based upon the ratio that the work completed bears to the total work required to make the report complete, subject to the Agency's rights under Sections 15 and 24 hereof. In ascertaining the work actually rendered through the termination date, Agency shall consider completed work, work in progress'and complete and incomplete reports and other documents only after delivered to Agency. 23.1 Other than as stated below, Agency shall give Consultant thirty (30) days prior written notice prior to termination. Page 6 of 19 e� 23.2 Agency may terminate this Agreement upon fifteen (15) days written notice to Consultant, in the event: 23.2.1 Consultant substantially fails,to perform or materially breaches the Agreement; or 23.2.2 Agency decides to abandon or postpone the Services. 24. Successors and Assigns: This Agreement,shall be binding upon Agency and its successors and assigns, and upon Consultant and,,its permitted successors and assigns, and shall not be assigned by Consultant, either in whole or in part, except as otherwise provided in J paragraph 9 of this Agreement. 25. Venue and Attorneys' Fees. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of San Bernardino, State of California, and the parties hereby waive all provisions of law providing ,for a change of venue in such proceedings to any other county. In the event either party hereto shall bring suit to enforce any term of this Agreement or to recover any damages for and on account of the breach of any term or condition of this Agreement, it is mutually agreed that the prevailing party in such action shall recover all costs thereof, including reasonable attorneys' fees, to be set by the court in such action. 26. Nondiscrimination. During Consultant's performance of this Agreement, Consultant shall not discriminate on the grounds of race, religious creed, color; national origin, ancestry, �- age, physical disability, mental disability, medical condition, including the medical condition of Acquired Immune Deficiency Syndrome (AIDS)or any condition related thereto, marital status, sex, or sexual orientation, in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Further, Consultant agrees to conform to the requirements of the Americans with Disabilities Act in the performance of this Agreement. 27. Severability. Each provision, term, condition, covenant and/or restriction, in whole and in part, of this Agreement shall be considered severable. In the event any provision, term, condition, covenant and/or restriction, in whole and/or in part, of this Agreement is declared invalid, unconstitutional, or void for any reason, such provision or part thereof shall be severed from this Agreement and shall not affect any other provision, .term, condition, covenant and/or restriction of this Agreement, and the remainder of the Agreement shall continue in full force and effect. 28. Authority: The individuals executing this Agreement and the instruments referenced herein on behalf of Consultant each represent and warrant that they have the legal power, right and actual authority to bind Consultant,to the terms and conditions hereof and thereof. Page 7 of 19 - A I I 29. Entire Agreement: This Agreement constitutes the final, complete, and exclusive statement of'the terms of the agreement between the parties pertaining to the subject matter of" this Agreement, and supersedes all prior and contemporaneous understandings or agreements of the parties. Neither party has-been induced to enter into this Agreement by, and neither party is relying on, any representation-or warranty outside those expressly set forth in this Agreement. 30. Interpretation. Agency and Consultant acknowledge and agree that this Agreement is the product of mutual arms-length negotiations and accordingly, the rule of construction,; which provides that the ambiguities in a document shall be-construed against the drafter of that; document, shall have no application to.the interpretation and enforcement of this Agreement. 30.1 Titles and captions are for convenience of reference only and do not define,; describe or limit the scope or the intent of the Agreement or any of its terms. Reference to' section numbers are to sections in-the Agreement unless expressly stated otherwise. I 30.2 This Agreement shall be governed by and construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. 31.3 In the event of a conflict between the body of this Agreement and Exhibit "A"' hereto, the terms contained in Exhibit"A"shall be controlling. 32. Exhibits. The following exhibits attached hereto are incorporated herein to this Agreement by this reference: Exhibit"A"—Scope of Work, Schedule, and Fees Exhibit"B"- Personnel • IN WITNESS WHEREOF Agency and Consultant"have caused this Agreement to be duly executed the day and year first above written. I I REDEVELOPMENT AGENCY OF GRAND TERRACE, A Public Entity Consultant: r By: HdL Coren & Cone, a California Acting Executive Director Corporation APPROVED AS TO FORM: By: � PfX�I.A J' GonlE [Printed Name]. Agency Counsel [Title] Page 8 of 19 ' k i tit EXHIBIT "A" SCOPE OF SERVICES, SCHEDULE OF PERFORMANCE AND FEES SCOPE OF WORK-PROPERTY TAX ANALYSIS,AUDITS AND REPORTS Using HdLCC's custom software, a data set of all parcels in the City and redevelopment project area(s) will be established and installed on the City's computer(s), either stand-, alone or networked systems. This data is prepared from the San Bernardino County Lien Date Rolls made available for purchase annually in August. HdLCC updates the original' County roll with any transfers in ownership,which have occurred, between the lien date and the current quarter and updates the ownership information (name and mailing address),date of transfer,sale price,and document(deed) number quarterly. 1. Reports and Analytical Services HdLCC furnishes a variety of reports detailing property and revenue trends for; the entire City and RDAs and for custom defined geographic areas. These reports can be used for budgeting purposes, planning, economic development and public information. Among the reports provided are top 25, 50, 100-property owner/taxpayer listings, multiple ownership properties, non-owner occupied parcels, identification of property ownership transfers and completed construction projects for tracking of reassessments. We also provide the City with quarterly reports of pending assessment appeals (in counties where this data is available for purchase). HdL Coren and Cone will reconcile the annual Auditor/Controller Assessed Valuations Report and will furnish a breakdown of assessed values within the county unincorporated areas by both Taxing Agency and Tax Rate Area. The identification of escaping revenue through the use of property tax data sets has been a targeted focus for HdLCC during the past 10 years. With the Page 10 of 19 1,: reduction of tax revenues through legislated Educational Revenue Augmentation Fund (ERAF), cities, counties, agencies and special districts have been focusing on ways to increase the limited resources already stretched thin. The unsecured roll contains property owners which, when matched with a business license data set can be used to identify escaping revenues. For instance, property leased to businesses in your jurisdiction is taxed to the lessor of the property. We find that frequently, the lessors are not properly registered with a county business license. When notified and properly licensed, these businesses will generate additional revenue for the county. The use of the secured roll will assist in identifying owners of rented residential, commercial,or industrial properties that do not have a business license with the City should one be required. The company will provide the following reports based on the 2009-10 lien date rolls and will provide the reports annually, quarterly or monthly as appropriate: Reports are also available from prior years if required. J , • A five year history of the values within the city, RDA and custom (city defined)geographic area; • A listing of the largest value changes, positive and negative between tax years; • A listing of the major property owners, including the assessed value of their property and property use code designation; • A listing of the major property tax payers, including an estimate of the property taxes; • A listing of property tax transfers which occurred since the lien date ordered by month; • A listing of parcels that have not changed ownership since the enactment of Proposition 13; Page I 1 of 19 12 • A multiple year comparison of growth by use code designation over a 10 year period; • A listing by parcel of new construction activity utilizing City building; department data, including building permits with assessor parcel numbers' and project completion dates, to identify non-residential parcels with new' construction activity and to provide reports for use in the City's preparation of Proposition 4 and 111 State Appropriation Limit calculations; • A listing of multiple owned parcels; • A listing of absentee owner parcels; • Calculate an estimate of property tax revenue anticipated to be received for the fiscal year based upon the initial information provided by the County and subject to modification. This report is interactive for tax modeling. This estimate shall not be used to secure the indebtedness of the City. • Foreclosure data and Bank Owned-Property listings • Analyses based on geo areas designated by the City to include assessed valuations and square footage computations for use in economic analysis and community development planning. 2. Quarterly • A listing of property tax appeals filed on properties in the City where data is available for purchase from the Clerk of the Board. • A listing of property transfers that have occurred since the last report will be available through the software provided and updated on a quarterly basis. • Software data will be updated quarterly including any software enhancements made to the program between quarters. 3. Identification and Correction of Errors Property taxes in California have evolved into an extremely complex system that requires experience and expertise to fully monitor. There are two broad categories of property (real and personal); three tax rolls (secured; unsecured and state assessed), and numerous peculiarities such as possessory interests, Page 12 of 19 1 mines& mineral rights and the distribution of tax revenue from private aircraft. The revenues generated by the property tax system need to be distributed to a myriad of taxing entities including cities, counties, schools, special districts and redevelopment agencies., The company's property tax information systems allow us to provide information and analysis from a city's property tax data set to city staff quickly and accurately. With the adoption of SB 1096, revenues formerly identified as VLF and Sales Taxes are in part being paid through the County Educational Revenue Augmentation Fund (ERAF). The year-to-year growth of ERAF in lieu of VLF is now tied to gross property value growth between tax years. The monitoring of this new revenue source for budget projections is now a feature of our property tax services. HdL Coren &Cone has the technology, methodology and trained staff to analyze all secured parcels within the City and redevelopment project areas to identify costly errors resulting in the misallocation of property taxes. The company has the ability to audit the secured and unsecured property-tax rolls two ways,first reviewing the entire county to find parcels miscoded to other jurisdictions; and second, reviewing the parcels within the city, county or agency to ensure that each is coded to the appropriate taxing entity. To date, we have recovered in excess of$295 million in net revenue for our client agencies in 38 counties statewide. Our advanced technology, accuracy and track record have placed us in a unique position to be hired by cities to find additional revenues after audits have been performed by prior consultants. In addition, by filing audit results with the County Assessor in a timely manner, we can assure that the repetitive errors from previous years will not re-occur. Upon approval of the contract, the company will perform an analysis of the Assessor Rolls to identify all parcels on both the secured and unsecured tax rolls and verify that parcel assessed valuations and the resulting taxes are correctly allocated to the City or its project area(s). This analysis is accomplished through the use of specialized computer software, assessor maps, city maps, city records, Page 13 of 19 1S other pertinent documents, and field investigations. The review will include the, lien date secured and unsecured data for the 2008-09 tax year as well as historical data back to the 2005-06 tax year. By cross matching parcels with the City's building permit activity and project completion information, we are able to, track parcels which should have been reassessed due to new construction' activity but have been missed by the assessor's appraisers (escaped' assessments). 4. On-Going Consultation During the term of the contract, we serve as the resource staff to the County or ; agency on questions relating to property tax. This includes being "on-call" to assist with any property tax issues. On-going consultation would include, but not be limited to inquiries resolved through use of the City data base.All requests for information based upon the County's property tax data sets are provided without additional costs. Special reports, additional research, or requests requiring additional computer programming may entail some additional costs. Optional Services Optional services are available for a fixed fee. These services include: • Tax Allocation Bonds fiscal consultant reports • Mello-Roos Special Tax studies • Independent .redevelopment and financial consultant reports such as escrow release reports and additional bond tests. AB 1290 AND SB 211 Tax Sharing Spreadsheets The AB 1290 tax-sharing is a requirement for all redevelopment project areas after 1993. The SB 211 tax-sharing is a requirement for all redevelopment project areas adopted prior to 1994 that amend their redevelopment plans to eliminate the time limitation on incurring indebtedness. Such project areas are required to make tax-sharing payments to all of the taxing entities that derive property tax revenue from the project area that do not have existing tax-sharing agreements. For AB 1290 plans the redevelopment agency is required to pay the taxing entities 25 percent of the tax increment revenue generated from the Page 14 of 19 {i growth of assessed values from the base year, net of the housing set-aside, proportionately divided between the taxing entities, including the City if the City so chooses. Beginning in the 11th year, there is an additional payment of 21 percent of the tax increment, net of housing set-aside, generated by the incremental growth of assessed values over the project area value in the tenth year. And, in the 31st year, there is an additional payment of 14 percent of the tax increment, net of housing set-aside generated by the incremental growth of assessed values over the project area value in.the 30th year. The AB 1290 tax- sharing applies to the 2003 Amendment Area. The SB 211 project areas are required to make tax-sharing payments to all of the taxing entities that derive property tax revenue from the project area that do not have existing tax-sharing agreements. For SB 211 project areas, beginning the fiscal year following the year when the original time limit expires, the redevelopment agency is required to pay the taxing entities 25 percent of the tax increment revenue generated from the growth of assessed values from the previous year, net of the housing set-aside, proportionately divided between the taxing entities, including the City'if the City so chooses. Beginning in the 11th year, there is an additional payment of 21 percent of the tax increment, net of housing set-aside, generated by the incremental growth of assessed values over the project area value in the tenth year. And, in the 31st year, there is an additional payment of 14 percent of the tax increment, net of housing set-aside generated by the incremental growth of assessed values over the project area value in the 30th year. It is the responsibility of the redevelopment agencies to calculate and distribute the tax-sharing revenue to the taxing entities under AB 1290 and SB 211. Our fee for each Project Area is based upon the number of tax rate areas and tax-sharing agreements in the Project Area. COST Compensation: Page 15 of 19 17 Our standard fee for property tax services is$625.00 per quarter, ($2,500 annually) plus 25%of net tax revenues recovered for the City and/or RDA in the audits performed over the period of time allowable by State statute (current year and 3 prior lien date years). Net tax revenues mean the taxes received by the City or RDA through our audit efforts. Any work beyond the scope of this proposal requested by the City shall be charged on a time and material basis. No work shall be performed without prior written approval of the City. Fees for these services are as follows: Partner $195 per hour Principal $175 per hour Associate $135 per hour Senior Analyst $100 per hour Analyst $ 65 per hour Administrative $ 45 per hour Hourly rates are exclusive of expenses that are billed at 1.15 times actual incurred costs. Reasonable travel and lodging fees will be billed at actual cost. Page 16 of 19 EXHIBIT "B" PERSONNEL Paula Cone Paula Cone is a principal with HdL Coren and Cone, the property tax arm of the HdL Companies, and has over twenty years of municipal experience in finance and city management. She developed the first cost-effective and accurate computer program for- identifying, monitoring ,. auditing and correcting property tax misallocations. She oversees the company's property tax management and auditing division which are also responsible for verifying and correcting jurisdictional and boundary errors. She has identified errors which have resulted in a redistribution of net tax revenues in excess of $80 million to client agencies. The property tax database is also used to verify jurisdictional and boundary errors for sales tax audit purposes. Ms. Cone earned her Bachelor's degree from -California State University at Long Beach in 1969. She is former Parks and Recreation Director and Assistant City Manager of the City of Lawndale. - Martin C. Coren Martin C. Coren joined -HdL Coren & Cone in 1992, after twenty years of experience providing legislative and financial consulting services to state and local government, particularly cities and redevelopment agencies. Martin was a legislative assistant in the State Assembly and a legislative and redevelopment financial consultant to more than 100 cities and redevelopment agencies. He was a founding partner of Katz, Hollis, Coren, Inc. He has been an instructor for the .California Redevelopment Institute on low and moderate-income housing and a member of the Page 17 of 19 10 California Redevelopment Association technical advisory committees on affordable housing and legislation, and currently-chairs the technical committee on the implementation .of statutory tax-sharing (AB 1290 and , SB 211). He is also the author of chapter on "Financing Redevelopment Projects" for Introduction to Redevelopment published by CRA. David Schey Mr. Schey has 17 years of experience in government service and, consulting. His experience includes service as Planning Director, Community Development Director and Deputy Director of Redevelopment. He has been instrumental in the formation of numerous special assessment districts and in the development and adoption of redevelopment project areas. As a consultant to city and county agencies, he has provided development and consulting services that include planning, project management and finance. Mr. Schey has participated in, the issuance of tax allocation, revenue and assessment district bonds as both a consultant and as the principal staff representative. As an active participant in the affairs of his community, Mr. Schey served for over six years as a member and chairman of both the Planning Commission and Parks and Recreation Commission.. Education: Bachelor of Arts, University of California; Los Angeles, California; Bachelor of Arts, California State University; Long Beach, California; Master of Public Administration, University of Southern California; Los Angeles, CA Andrew C. Nickerson Andrew Nickerson joined HdLCC in 1992. He has worked extensively with county agencies to expand the firms property tax database. Mr. Nickerson is responsible for client site installations of the firm's property tax software, staff training and technical support. Production of the property Page 18 of 19 2( tax analytical reports are also under the direction of Mr. Nickerson whose background includes knowledge in finance and real estate law. Education: Bachelor of Science, California State Polytechnic University, Pomona, California. Cheryl Murase Cheryl Murase joined the HdLCC Companies after five years with O'Connor & Company Securities as a Vice President. Prior to that, Ms. Murase worked for�a California municipal financial advising firm for five years in Senior Associate and' Associate positions where she gained experience in structuring a wide variety of issues including tax allocation, certificates of participation, Marks-Roos and Mello-Roos issues. Her understanding of county assessments of property value and tax collections has aided in the projection of tax increment revenue. She has assisted clients with the various government reporting requirements, and has gathered information necessary for continued rating of debt. . 1 Ms. Murase gained her municipal accounting background from working in a variety of capacities for the cities of Montebello and Commerce. She served as the Redevelopment Accountant for the City of Commerce. Page 19 of 19 71 2�a„i AGENDA REPORT CALIFO.ftVIA - MEETING DATE: February. 23, 2016 Council Item( ) CRA Item (X) TITLE: Adopt Resolution to Appropriate and Approve FY 2009-10 4 SERAF Payment and Protest Payment Requirement by State PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION: Adopt Resolution to Appropriate, Approve and Reserve Right of Refund of State required SERAF payment for FY 2009-10 BACKGROUND: Since the early 1990's the state has taken redevelopment funds from agencies to balance the state budget. The Community Redevelopment Agency has lost a cumulative total of $1,537,866 available fund balance to the state since 1992. This is in addition to the estimated $850,000 of 1.0% general property tax levy allocation that was shifted over the years to the state since that time. CRA is required under the State Budget Act of 2009 to transfer funds to the State Supplemental Educational Revenue Augmentation Fund to fund K-12 educational institutions. CRA•Board must appropriate funds and advise the county auditor controller, no later than March Is` that it has non-housing CRA funds available to make such payment and the board shall warrant that such payment will be made to the county auditor controller no later than May 10, 2010. Staff has determined that the Agency does have available undesignated, unreserved non-housing CRA Fund Balance Reserve to pay the SERAF transfer for FY 2009-10. DISCUSSION: The State budget approved by the Legislature and signed by the Governor in July 2009, included ABX4-26 which authorizes a devastating $2.05 billion raid of redevelopment funds. The California Redevelopment Association filed a lawsuit in Sacramento Superior Court challenging the constitutionality of taking these funds. The CRA's share of SERAF for this fiscal year is $2,179,087. The wording on this year's legislation was slightly amended. This is almost a repeat of the previous year in which the State Budget Act of 2008 and AB 1389 legislated that $350 Million ERAF was to be taken from redevelopment agencies. The Grand Terrace Community Redevelopment Agency was required to pay $448,211 for 2008. However, the California Redevelopment Association and the redevelopment agencies prevailed in a CRA AGENDA ITEM NO. 7 subsequent lawsuit. In addition, the state abandoned an appeal to that decision. Last year the staff did not submit the check to the county auditor controller due to the successful lawsuit news which was received a day or two before the submission deadline. Staff will hold the SERAF disbursement again until the outcome of the current lawsuit is known' or May 10`h. Hopefully, we will know the court outcome before the May 10`h deadline. Should; staff need to send the $2.1 Million to the county, the attached adopting resolution reserves an immediate refund of the amount paid should the lawsuit be successful. Staff is optimistic that the same result will occur again this year. FISCAL IMPACT: This potential SERAF liability was not known until after the city and agency adopted the FY 2009-10 Budget. There are sufficient funds available to meet this obligation. The projected available CRA Debt Service Fund Balance Reserve this year is $4.8 Million after designating $2.7 Million in case,the RDA plan amendment does not pass this fiscal year. An appropriation and expenditure for SERAF will reduce available undesignated, unreserved CRA Debt Service Fund Balance Reserve by $2,179,087 to approximately $2.6 Million. Respectfully submitted, Bernie Simon Finance Director Manager Approval: Betsy (Adams City Manager ATTACHMENTS: 1) Dept. of Finance Letter dated November 13, 2009 2) Community Redevelopment Association information regarding-20091 raid of Redevelopment Funds and Litigation 3) CRA Resolution 2010 y`s$ Ts 1 J14ass,k Aria) R� 2 C n/ DEPARTMENT OF �•.��pMl��I N A N C E ARNOLD SCHWARZENEGGER, GOVERNOR OFFICE OF THE DIRECTOR 9TATL� CAPITOL■ ROOM 1 1 45 BAQRAM LNT� CA■ 956 1 4-49 96 III 1NWW,OOF.CA.[iOV November 13, 2009 TO ALL COUNTY AUDITORS, REDEVELOPMENT AGENCIES, AND THEIR LEGISLATIVE BODIES: Chapter 21, Statutes of 2009, requires redevelopment agencies to shift $1.7 billion in property tax revenues to K-12 schools during,the 2009-10 fiscal year via the Supplemental Educational Revenue Augmentation Funds (SERAF) that the Chapter created in each county. The Director of Finance is required to determine the amount each redevelopment agency shall transfer to the SERAF, and is further required to notify each redevelopment agency and legislative body of those amounts. In accordance with the above requirements, the attached document provides the amount determined for your redevelopment agency. Each redevelopment agency must allocate the specified amount to the county auditor-controller for deposit into the SERAF on or before May 10, 2010. By March 1, 2010 the legislative body shall either report to the county auditor-controller how the redevelopment agency intends to fund its SERAF obligation, or report that the legislative body intends to-fund the'SERAF obligation on behalf of the redevelopment agency pursuant to Section 33692 of the Health and Safety Code (HSC). If a redevelopment agency'determines that it will not be able to allocate to the SERAF'the full amount required, it may enter into an agreement with its legislative body by February 15, 2010, for the legislative body to fund either the full SERAF obligation, or a portion thereof. Alternatively, pursuant to HSC Section 33690 (c), a redevelopment agency that makes a finding that insufficient monies are available to fund its SERAF obligation may borrow from monies contained in its Low and Moderate Income Housing Fund. Redevelopment agencies also may borrow from the amount otherwise required to be remitted in 2009-10 to its Low and Moderate Income Housing Fund. All borrowed funds must be fully repaid by June 30, 2015. If you have any questions regarding this matter, please contact Chris Hill, Principal Program Budget Analyst, at (916) 322-2263. MICHAEL C. GENEST Director By: AN MATOSANTOS Chief Deputy Director Attachment 2009-10 Redevelopment Agency SERAF Shift Health and Safety Code Section 33690 850,000,000 on 850,000,000 on Net Tax Net Tax 2006-07 Tax _ Increment Increment Increment Net Based on Net Based on of Pass- 2006-07 Gross Factor Gross Factor Redevelopment Agency Name Throughs I Tax Increment (0.2261168310) (0.1793855082) Total SERAF ',ommunity Redevelopment Agency of the City of Grand Terrace 4,451,173 6,536.772 1,006,485' 1,172,602 2,179,087 Redevelo ment. Building Better Communities. FREQUENTLY ASKED QUESTIONS About the 2009 State Raid of Redevelopment Funds and Litigation" i (Questions about SERAF and payments begin on page 3) ABOUT THE LAWSUIT 1. Why'is the State taking redevelopment money if CRA was successful in last year's lawsuit challenging AB 1389? CRA was successful in blocking a 2008 proposed shift of$350 million in redevelopment funds in Sacramento Superior Court, and the State recently abandoned its appeal of the Superior Court ruling, meaning the 2008 raid is unconstitutional and agencies do not need to make the payment. The State claims the 2009 budget legislation,ABX4-26, fixes the constitutional issues raised by the Superior Court by directing the redevelopment funds to schools with students within the boundaries of a redevelopment agency project area and students living in housing funded by redevelopment. The State claims that funding schools within a redevelopment project area "furthers" the purpose of redevelopment.CRA and its attorneys believe that ABX4-26 is also unconstitutional on the same grounds upon which AB 1389 was successfully challenged, and many additional grounds. Consequently, we've filed a lawsuit in Sacramento Superior Court to invalidate ABX4-26. 2. Does the new legislative language address the constitutional issues and Superior Court ruling? No. ABX4-26 is unconstitutional because the unquestioned purpose of this budget bill is to help balance the State's budget, not to further the purpose of redevelopment. Under ABX4- 26, schools won't receive one dime more than already guaranteed from the State.ABX4-26 simply shifts the,obligation from the State to redevelopment agencies. The constitutional requirement is that tax increment be spent to repay indebtedness incurred to finance the redevelopment project.ABX4-26's redirection of tax increment to SERAF fails the constitutional requirement because the revenues diverted are not related or proportional to the cost of any direct benefit to the redevelopment project. 1 S 3. On what grounds did CRA sue to invalidate ABX4-26? Article XVI, Section 16 of the California Constitution states that redevelopment tax ; increment funds can only be used for specified redevelopment activities, specifically "to finance or refinance... the redevelopment project." Taking redevelopment funds.to balance the State's budget—the real purpose of ABX4-26—does not qualify as a constitutionally permitted use of redevelopment funds and.is therefore unconstitutional. Additionally,the State and U.S.Constitutions prohibit the Legislature from enacting,laws that impair the obligation of contract. Raiding$2.05 billion in redevelopment funds could jeopardize bond covenants and other contractual obligations entered into by many redevelopment agencies creating an unconstitutional impairment of contract. (See question r^ #20 below.) Finally, there are a number of other constitutional violations created by ABX4-' 26. 4. What-is the latest on the appeal of last year's Superior Court ruling. In September,the State of California abandoned its appeal of the Superior Court ruling that found the 2008 raids were unconstitutional.As a result, the Superior Court decision is final r and binding. The 2008$350 million raid is,unconstitutional and agencies need not make that payment. ` 5. Who are the attorneys representing CRA in the lawsuit? The same legal team that successfully represented CRA in the 2008 litigation has been retained.The two firms retained are McDonough Holland &Allen, and Nielsen, Merksamer; Parrinello, Mueller& Naylor. 6. In which court did CRA file the second lawsuit? We filed in Sacramento Superior Court on October 20, 2009. 7. Instead of filing in Superior Court,why doesn't CRA file its lawsuit against the State directly with the Court of Appeal or the Supreme Court? CRA's legal team has carefully evaluated where the case should be initially filed. Their judgment is that the case should be filed in Superior Court for the following reasons: (1) Neither the Supreme Court nor the Court of Appeal is required to accept an original petition for writ of mandate. Most petitions for writ of mandate,filed in appellate ? courts are denied without a ruling on the merits. This is the court's way of saying "start in a lower court." It could, however,take weeks or months for the appellate court to decide whether to accept the petition. If the court did not accept the petition and required it to be filed in a lower court,we would lose time critical to getting a decision ' before May 10 when payments from agencies are due. (2)The ability to make a factual record in an appellate court is far more constrained than in the Superior Court. CRA's legal team believes that it will be especially important in this case to make a strong factual record. The best place for doing that is the Superior Court. (3) As was the case with the AB 1389 litigation, CRA's objective is to obtain a ruling from the Superior Court that will apply to all agencies prior to May 10. 2 t 8. Who are the plaintiffs in the case? The California Redevelopment Association, the Union City Redevelopment Agency and the Fountain Valley Redevelopment Agency are the plaintiffs, as well as John Shirey, CRA Executive Director, in his role as a California taxpayer and citizen. 9. Who are the defendants? As in the 2008 litigation, the Director of the State of California Department of Finance will be the principal defendant in the lawsuit. For technical reasons, we have once again included county auditors as defendants, since auditors are the ones charged with the transfer of payments from redevelopment agencies'into county Supplemental Educational Revenue Augmentation Funds (SERAF). 10. How is CRA going to pay for the lawsuit? All CRA member agencies have been asked to pay a proportionate share of the costs of the lawsuit similar to what was done for the first lawsuit. CRA will seek an award of attorney fees if it is successful, as it has done in the AB 1389 litigation, but resolution of attorney fees issues likely will not occur until well after the lawsuit is finished. - 11. Can my agency sue the State directly without joining the CRA lawsuit? We strongly recommend that agencies not file separate litigation against the State. Multiple suits will lead to greater costs and possible delays in getting a decision from the court. 12.Section 10 of ABX4-26 states that, if a court finds a remittance is not legally permissible for a particular redevelopment agency,.such determination has no effect on all other agencies. Does that mean that all agencies must join the lawsuit as plaintiffs in order to � 1 block the SERAF transfers? Since CRA is challenging the constitutionality of ABX4-26, a favorable finding by the court should invalidate the statute in total so that the ruling would_ benefit all redevelopment agencies as did the AB 1389 ruling. Given the unusual language in section 10 of ABX4-26, the litigation was filed as a plaintiffs' class action,.with the two named redevelopment agencies representing a class of all redevelopment agencies required to make the SERAF payment. This class action is intended to eliminate the need for all individual agencies to join the suit. ABOUT THE NEW SERAF 13. What is the difference between past ERAF takes and ABX4-26's"SERAF"take? The structure for the redevelopment fund shift is similar to last year's budget trailer bill, AB 1389.The primary difference is that, in an effort to get around CRA's successful lawsuit, the Legislature created a new county "Supplemental" ERAF (SERAF). Under this new SERAF, redevelopment funds are to be distributed to a K-12 school district(s)or county office of education located partially or entirely within any project area of the agency. 3 7 I 14. How does the new SERAF work? The funds deposited into the new county SERAF must be distributed to a K-12 school district or county office of education located partially or entirely within any project area of the ' agency. ,00 -The funds distributed to schools or county offices of education from the SERAF must be used to serve pupils living in the project area or in housing supported by redevelopment funds. (it is unclear how an agency is supposed to determine how many students are in housing supported by redevelopment funds). �o The total amount of SERAF funds received by a school district.is deemed to be local property taxes and will reduce dollar-for-dollar the State's Prop'98 obligations to fund education. 15. How and when is each Agency's SERAF payment calculated? The Department of Finance will determine each agency's SERAF payment by November 15 of each year. The formula for calculating the amount each agency must pay is based half on' net tax increment(net of pass-throughs to local property taxing entities) and half on gross tax increment. The legislation states that the calculations for FY 2009-10 and FY 2010-11 will be based on State Controller's Office Tax Increment data from FY 2006-07. I On November 12, 2009,Governor Schwarzenegger signed SB 68 (Steinberg) which contains another provision regarding the calculation of SERAF payments. If property within a redevelopment-project area was deleted prior to August 1, 2009 and this deletion is not accounted for in the FY 2006-07 State Controller's data, the Department of Finance, in calculating the SERAF payment, must adjust an agency's tax increment revenue to account for the subsequent deletion of the property. The new law allows this adjustment to be made for FY 2009-10 and FY 2010-11 SERAF payments. f CRA has posted an estimate of each agency's payment for each fiscal year and a total on its website at www.calredevelop.org. It's important to note that these figures are just estimates based on the implementing legislation.The Department of Finance will produce the official SERAF amount owed by each agency for FY 2009-10 by November 15, 2009. 16.Why does ABX4-26 require the Director of Finance to use 2006-07 data from the State i Controller to calculate SERAF payments when 2007-08 data is available? We do not know if this is intentional or an oversight, but differences in payments are significant depending on which year's State Controller data is used by the Department of Finance. 1 17. When does my agency have to pay its share of the take? ; Payments are due by May 10 of the applicable fiscal year.The legislative body of the :,- redevelopment agency must report to the county auditor by March 1 how it intends to fund the payment. 4 I � I r � 18. Should I pay my SERAF early? No. Because of the,pending litigation, CRA recommends-:not making any payments until further notice. CRA will regularly inform its members of the progress of the lawsuit. 19.What funds can I use to make the SERAF payment? The agency can use any legally available funds to make the SERAF payment. For FY 2009-10, the agency may"suspend" all or part of the required 20%allocation or set aside to its Low- and Moderate-Income Housing Fund (Housing Fund) in order to make the payment. On November 12, 2009, Governor Schwarzenegger signed SB 68(Steinberg) which amends ABX4-26 to also allow agencies to use accumulated funds in their Housing Funds to.make payments. Important Note:Agencies may use accumulated housing funds for SERAF payments for the FY 2009-10 year only.They cannot do the same for the second year, FY 2010-11. > The Housing Fund must be repaid by June 30, 2015. > If the agency fails to repay the Housing Fund, the required allocation of tax increment to the Housing Fund is increased by 5 percentage points (to 25%for most project areas) for as long as the project area continues to receive tax increment. The local legislative body(City Council or County Board of Supervisors) may also lend the SERAF payment'to the agency and, in that case, the agency is authorised to repay the legislative body from tax increment. > The legislative body may make the payment on behalf of the agency. > The provisions of existing law that permit a joint powers authority(i.e. CSCDA or California Communities) to sell bonds and loan the proceeds to redevelopment agencies in order to make ERAF payments are also available for the 2009-10 and 2010-11 payments. Lastly, a separate, but,overlapping, section of ABX4-26 permits an agency to borrow the amount required to be allocated to the Housing Fund in order to make the SERAF payment. > This provision apparently applies to fiscal years 2009-10 and 2010-11. > It requires a finding that there are insufficient non Housing funds to make the SERAF payment. (There is no parallel requirement to make findings for the "suspension" in FY 2009-10.) Amounts "borrowed" from the current year allocation to the Housing Fund under this section must also be repaid by June 30, 2015 or June 30, 2016,as applicable. 5 0 20. Is the obligation to make the SERAF payment subordinate to obligations to repay bonds and other indebtedness? Yes. An agency may pay less than the amount required if it finds that it is necessary to make payments on existing obligations required to be committed, set-aside, or reserved by the agency during the applicable fiscal year. An agency that intends to pay less than the required amount in order to pay existing,obligations must adopt a resolution prior to December 31, 2009, listing the existing indebtedness and the payments required to be made during the applicable fiscal year. However, it is important to note that agencies that fail to make their SERAF payments are subject to the "Death Penalty" or"Suspension Penalty" described below. rr_ 21.What happens if an agency fails to make its SERAF payment? An agency failing to timely make its SERAF payment—even if it must do so to pay existing obligations—is subject to the"Death Penalty as follows: > An agency may not adopt a new redevelopment plan, amend an existing plan to add, territory, issue bonds,further encumber funds,or expend any moneys derived from; any source except to pay pre-existing indebtedness, contractual obligations, and 75%of the amount expended on agency administration for the preceding fiscal year. > . This penalty would last until the required SERAF payments have been made. In addition to suffering the Death Penalty,the agency must increase its housing set-aside by 5 percentage points on July 1, 2010 or July 1, 2011,whichever is applicable, for the r remainder of the time the agency receives tax increment. 22.What happens if my agency does not/cannot repay the Housing Fund loan by the required June 2015 or June 2016 deadline? If the agency fails to repay the Housing Fund,the required allocation of tax increment to the Housing Fund is increased by 5 percentage points (to 25%for most project areas)for as long as the project area continues to receive tax increment. 23. Do I have to pay interest on the use of our current year housing set-aside funds to make the SERAF payment? No. 24. Can I borrow from the accumulated balance in the Housing Fund to make the SERAF payment? Yes. When ABX4-26 was passed, its provisions only allowed the agency to borrow from its current year's allocation to the Housing Fund. However,SB 68,which was signed into law November 12, also allows agencies to borrow from the accumulated funds in their Housing, Fund to the extent this reduction in funds does not impair executed contracts. Important Note:Agencies may use accumulated housing funds for SERAF payments for the FY 2009-10 year only.They cannot do the same for the second year, FY 2010-11. 6 �Z 25. Can SERAF payments be made with bond proceeds? Agencies in all cases should first consult with their bond-counsel. But the general rule is if the bonds are tax-exempt,you may not,make•SERAF payments with bond proceeds. If the bonds are taxable,you likely can use proceeds to make your SERAF payment. Again, each agency must consult with bond counsel to make a final determination. 26.What happens to redevelopment funds being accumulated in order to finance a longer- term project? _ Under ABX4-26, an agency must make its full required SERAF payments using any available r funds,and that includes funds being accumulated in order to fund a project. 27. If my agency pays on time, does the legislation authorize a one-year extension of our project area plan? Yes. If an agency makes its full payment on time for the current fiscal year, FY 2009-2010, time limits on plans can be extended by one year. Extensions cannot be enacted until after the required payment has been made.This one-year extension does not apply to the second year payment in FY 2010=11. 28. Do funds paid to SERAF count against my project area dollar cap? Yes. Unlike previous ERAF shifts,ABX4-26 makes no provision for excluding payments from the limit on receipt.of tax increment. 29.Should I include the SERAF payment,in my annual Statement of Indebtedness.? While ABX4-26 does not go into effect until October 23, 2009 and payments are technically not an indebtedness of the agency until that'date,we are advising agencies to include the required SERAF payment in their next SOI." 30.1 am currently updating the Five-Year Implementation Plan. Given the pending litigation, how do I write the plan not knowing whether the SERAF payments will have to be made? There is no one answer to this'question and opinions will vary. CRA suggests that your agency develop its implementation plan based on the assumption that there will be no SERAF and then include a paragraph at the end stating that programs may have to be curtailed if and to the extent a SERAF take is imposed-by the State. 7 11 COMPLIANCE WITH AS 26 4x, STATE TAKE of$2.OS Billion A B 26 4x, State legislation enacted this past session to shift $2.05 billion from redevelopment agencies to county Supplemental Revenue Augmentation Funds (SERAF), requires agencies to take certain specified actions in advance of May 10, 2010, the date this fiscal year's payments are due. This Update provides guidance to agencies on what they need to do to comply with requirements in AB 26 4x. Background AB 26 4x requires redevelopment agencies to remit to their county SERAF a proportionate share of$1.7 billion for fiscal year 2009-10 and $350 million for fiscal year 2010-11. Those payments are due May 10, 2010 and May 10, 2011, respectively. By now, each agency should have received notification of the amount of their respective SERAF payments for 2009-10 from the State Department of Finance. CRA has filed a lawsuit in Sacramento Superior Court challenging the constitutionality of AB 26 4x. A hearing on the merits of the lawsuit has been set for February 5, 2010. It is CRA's objective to obtain a Superior Court judgment declaring AB 26 4x unconstitutional and enjoining Its enforcement prior to the May 10, 2010 deadline for SERAF payments. However, until AB 26 4x has been judicially determined to be unconstitutional, it Is the law. Redevelopment agencies should be prepared to comply with its terms if that becomes necessary either because CRA Is unable to obtain a judgment or Injunction prior to May 10, 2010, or that judgment is unfavorable and must be appealed. Some of the actions to be taken by May 10, 2010 will apply to all redevelopment agencies. Others may not apply, depending on agencies' individual circumstances. Each agency should consult with Its legal and financial advisors to determine which actions may be appropriate for their circumstances. DEADLINES December 31, 2009: AB 26 4x permits an agency to pay less than the amount determined by the Director of the Department of Finance in order to repay "existing indebtedness." (Health&Safety Code §33691(b), (c)) Existing indebtedness is defined to include certain specified obligations entered into prior to the effective date of AB 26 4x (October 26, 2009), the payment of which is to be made from tax Increment and that is required by law or by provision of the existing indebtedness to be made during fiscal year 2009-10. In order to use this exception, an agency and its legislative body must each adopt a resolution prior to December 31, 2009, making certain findings. The resolution can only be adopted following a noticed public hearing. AB 26 4x does not specify the length of, or manner of, giving notice. CRA recommends that, as a minimum, notice be given by publication in a newspaper of general circulation in the community at least once not less than 10 days prior to the public hearing. The information In the resolution must also be reviewed for accuracy by the agency's chief fiscal officer. February 1S, 2010: AB 26 4x also permits an agency that will be unable to make the full amount of Its payment to SERAF to enter into a written agreement with the legislative body of the agency prior to February 15, 2010, to fund all or a portion of the payment. (Health &Safety Code §33691(d)) This exception is elective; that is, the legislative body is not required to enter into such an agreement. 1� March 1, 2010: By March 1, 2010, the legislative body of the agency is required to notify the county auditor as to how the redevelopment agency intends to fund the SERAF payment. (Health&Safety Code§ 33690(d)) May 10, 2010: Payments to county SERAFs are due. (Health kSafety Code § 33690(a)) CRA strongly counsels agencies not to make SERAF payments prior to this date and that agencies carefully monitor CRA updates concerning the progress of the lawsuit. 1� I RESOLUTION NO. 2010- A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING THE FISCAL YEAR 2009-10 COMMUNITY REDEVELOPMENT AGENCY BUDGET AND I ALLOCATING A DEPOSIT INTO THE EDUCATIONAL REVENUE AUGMENTATION FUND WHEREAS,the California Budget Act of 2009, requires redevelopment agencies, to shift property tax revenue to K-12 schools or the county office of education during fiscal year 2009-10; and WHEREAS, such funds are required by the California Budget Act of 2009 to be transferred to the county auditor and be deposited in the Supplemental Educational Revenue Augmentation Fund (SERAF) no later than May 10, 2010; and WHEREAS, the redevelopment agency is required to determine that it has available funds to fund the required SERAF transfer and that, if needed, such payment may come from redevelopment low mod housing funds and, if needed, such payment may come from general funds of the city or any other legal source of funds; and WHEREAS, the governing board must communicate to the county auditor its " intention to remit such SERAF transfer payment to the county auditor no later than March 1, 2010; and WHEREAS, the California Department of Finance has determined that the Community Redevelopment Agency of Grand Terrace share of the 2009 SERAF transfer payment in accordance with Health and Safety Code §33690 to be the amount of $2,179,087; and WHEREAS, the State Budget Act of 2009 and ABx 4-26 was adopted after the f Board of Directors adopted the 2009-10 fiscal year budget of the Community Redevelopment Agency of Grand Terrace; and WHEREAS, the governing board believes that the California Budget Act of 2009 requirement to shift property taxes from redevelopment agencies to K-12 schools or the county office of education is improper, illegal and furthermore supports the efforts by the California Redevelopment Association and the City of Fountain Valley Community Redevelopment Agency in a lawsuit filed in Sacramento Superior Court on October 20, 2009, seeking to block sections of budget trailer bill ABx 4-26, which was approved as part of the FY 2009-10 State budget; i NOW THEREFORE, the Board of Directors of the Community Redevelopment Agency of Grand Terrace does hereby resolve, declare, determine, and order as follows: Section 1. There are sufficient funds in the unreserved, undesignated non-housing 1 � F Fund Balance Reserves of the Community Redevelopment Agency to pay the determined SERAF transfer payment for FY. 2009-10. Section 2. The Agency will remit the required ERAF transfer from unreserved, undesignated non-housing fund balance reserves of the.Community Redevelopment Agency, as determined by the Department of Finance, and advise the County Auditor Controller its intent to deposit $2,179,087 into the Educational Revenue Augmentation Fund no later than May 10, 2010. Section 3. Amend the FY 2009-10 Budget of the Community Redevelopment Agency to appropriate funds as needed, from the unreserved, undesignated fund balance reserve of the CRA Debt Service Fund. Section 4. The Agency reserves the right to a receive an immediate refund from the state or county auditor should the requirement to shift property taxes from the redevelopment agency, contained in the California Budget Act of 2009, be determined illegal or invalid at a later date. PASSED, APPROVED, AND ADOPTED this 23rd day of February, 2010. Attest: Secretary of the Grand Terrace Community Chairman of the Grand Terrace Redevelopment Agency Community Redevelopment Agency 1S vchlist Voucher List Page: 1 02/17/2010 2:47:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 64883 2/3/2010 011007 BLUE SHIELD OF CALIFORNIA Feb J04365575- Feb Health Ins-S Berry 10-180-142-000-000 83655 Total : 836.55 64884 2/9/2010 001907 COSTCO#478 047805 002480E C. CARE SUPPLIES 10-440-220-000-000 130.97 Total : 130.97 64885 2/9/2010 010984 MERRILL, LYNN Jan 4 2010 NOV/DEC CONSULTING SERVICES 10-180-255-000-000 1,80000 Total : 1,800.00 64886 2/9/2010 006772 STANDARD INSURANCE COMPANY Feb1605131700 FEBRUARY DENTAL INSURANCE 10-022-61-00 1,27300 10-180-142-000-000 44.08 10-370-142-000-000 44.08 Total : 1,361.16 64887 2/9/2010 004587 MANAGED HEALTH NETWORK 3200013780 FEBRUARY MHN INSURANCE Page. 1 vchlist Voucher List Page: 2 02/17/2010 2:47:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 64887 2/9/2010 004587 MANAGED HEALTH NETWORK (Continued) 10-120-142-000-000 1696 10-125-142-000-000 960 10-140-142-000-000 1440 10-172-142-000-000 3.20 10-175-142-000-000 2.56 10-180-142-000-000 2368 10-370-142-000-000 1088 10-380-142-000-000 640 10-440-142-000-000 134.40 10-450-142-000-000 1600 21-572-142-000-000 768 32-370-142-000-000 960 34-400-142-000-000 960 34-800-142-000-000 2.56 10-180-142-000-000 640 10-185-142-000-000 640 32-200-142-000-000 768 10-110-142-000-000 640 Total : 294.40 64888 2/9/2010 006772 STANDARD INSURANCE COMPANY Feb 2010 FEBRUARY LIFE AND DISABILITY INSURANCE Page: 2 vchlist Voucher List Page: 3 02/17/2010 2:47:46PM CITY OF GRAND TERRACE Bank code bofa Voucher Date Vendor Invoice Description/Account Amount 64888 2/9/2010 006772 STANDARD INSURANCE COMPANY (Continued) 32-370-142-000-000 677 34-400-142-000-000 1033 34-800-142-000-000 278 32-200-142-000-000 11 1.0 10-185-142-000-000 695 10-022-66-00 1,231.28 10-120-142-000-000 1842 10-125-142-000-000 10.42 10-140-142-000-000 1563 10-172-142-000-000 348 10-175-142-000-000 2.78 10-180-142-000-000 2509 10-370-142-000-000 1031 10-380-142-000-000 6.95 10-440-142-000-000 54.35 10-450-142-000-000 1043 21-572-142-000-000 7 71 Total : 1,434.78 64889 2/9/2010 010764 SAFEGUARD DENTAL&VISION Feb Vision 2945 FEB VISION INSURANCE 10-022-61-00 14390 10-180-142-000-000 7780 Total : 221.70 64890 2/10/2010 005702 PUBLIC EMPLOYEES' RETIREMENT PRend 2-5-10 Contributions for PRend 2-5-10 10-022-62-00 19,134.93 Total : 19,134.93 64891 2/16/2010 010546 MPOWER COMMUNICATIONS 387767 FEB Feb Phone Lines/Service 10-805-235-000-000 6534 10-450-235-000-000 59.53 10-440-235-000-000 27534 387798-Feb FEB. PHONE SERVICE/LINES 10-190-235-000-000 1,02748 10-380-235-000-000 20000 10-808-235-000-000 5730 Page: 3 vchlist Voucher List Page: 4 02/17/2010 2:56:09PM CITY OF GRAND TERRACE Bank code bofa Voucher Date Vendor Invoice Description/Account Amount 64891 2/16/2010 010546 MPOWER COMMUNICATIONS (Continued) Total. 1,684.99 64892 2/16/2010 006720 SO CA.EDISON COMPANY Jan 2010 January Electricity 16-510-238-000-000 5,536.87 10-805-238-000-000 72470 15-500-601-000-000 22.20 26-600-238-000-000 49 80 26-601-238-000-000 41.50 26-602-238-000-000 58 10 Total 6,433.17 64893 2/23/2010 001206 ARROWHEAD CREDIT UNION Jan/Feb 2010 January-February VISA Purchases 10-120-210-000-000 City Manager Office Supplies 5140 10-370-210-000-000 Comm.Dev Office Supplies 22040 10-440-219-000-000 Child Care Supplies 3397 10-440-221-000-000 Child Care Supplies 5 86 10-440-228-000-000 Child Care Supplies 3048 10-440-270-000-000 Child Care Training 1,675.00 10-450-245-000-000 Park Maint/Supplies 15877 10-808-246-000-000 EOC Supplies 279.43 23-200-14-00 Child Care Trust Fund 4498 Total• 2,500.29 64894 2/23/2010 010060 BOUSTEDT, MICHELLE 02112010 Refund Great West Loan Payments 10-022-64-00 1938 Total: 19.38 64895 2/23/2010 010726 CHAMBERS GROUP INC 24730 7/1/09-1/31/10 for Gen Plan Update EIR 10-370-250-000-000 -19,757 50 10-370-250-000-000 2,947.94 10-370-250-000-000 19,757.50 10-370-255-000-000 22,954.50 Total: 25,902.44 64896 2/23/2010 010218 CHEVRON &TEXACO CARD SERVICES 23359241 Jan January Maint Vehicle Fuel 34-800-272-000-000 97 31 10-180-272-000-000 66496 Page. 4 vchlist Voucher List Page: 5 02/17/2010 2:47:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 64896 2/23/2010 010218 CHEVRON &TEXACO CARD SERVICES (Continued) Total : 762.27 64897 2/23/2010 001867 COMMERCIAL LANDSCAPE SUPPLY 165508 LANDSCAPE SUPPLIES 10-450-245-000-000 16464 Total : 164.64 64898 2/23/2010 010972 CONSOLIDATED REPROGRAPHICS 100231 January Website Maint fee 10-175-246-000-000 1082 92577 December Webiste Maint Fee 10-1.75-246-000-000 10.82 Total : 21.64 64899 2/23/2010 010147 CORTES, BEA Feb 2010 February Stipends/Auto Allowance 10-110-120-000-000 7706 10-110-273-000-000 20000 32-200-120-000-000 150.00 Total : 427.06 64900 2/23/2010 001930 DAILY JOURNAL CORPORATION B1780533 Legal Notices-General Plan EIR 10-370-230-000-000 62040 B1781231 LEGAL ADVERTISING 10-125-230-000-000 334.40 B1785442 LEGAL ADVERTISING 10-125-230-000-000 81.40 Total : 1,036.20 64901 2/23/2010 010711 DANKA FINANCIAL SERVICES 71246255 TOSHIBA COPIER LEASE E-STUDIO 310 10-172-246-000-000 6383 10-175-246-000-000 31 91 34-400-246-000-000 6383 Total : 169.57 64902 2/23/2010 001950 DATA QUICK 61-1750188 January Services 10-380-250-000-000 4350 21-572-246-000-000 4350 34-800-220-000-000 4350 Total : 130.50 Page 5 vchlist Voucher List Page: 6 02/17/2010 2:47:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 64903 2/23/2010 001942 DATA TICKET INC 30147 PARKING CITE PROCESSING SERVICES 10-140-255-000-000 35000 Total : 350.00 64904 2/23/2010 003210 DEPT 32-2500233683 009944/002226: MAINTENANCE SUPPLIES 10-180-246-000-000 5.34 10-440-245-000-000 41 51 10-805-245-000-000 2.19 9025445 MAINTENANCE SUPPLIES 10-450-245-000-000 19564 Total : 244.68 64905 2/23/2010 002082 DISCOUNT SCHOOL SUPPLIES D11883090002 SCHOOL AGE SUPPLIES 10-440-223-000-000 27714 Total : 277.14 64906 2/23/2010 002450 FERRE', MARYETTA Feb 2010 February Stipends/Auto Allowance 10-110-120-000-000 25000 10-110-273-000-000 200.00 32-200-120-000-000 15000 Total : 600.00 64907 2/23/2010 011106 FRACO ENTERPRISES INC 3001 BASEBALL FIELD PROJ DESIGN/ENGINEERING 32-600-312-000-000 14,064 08 Total : 14,064.08 64908 2/23/2010 002727 FREEMAN COMPANY, J R 430853-0' Toner& Office Supplies 10-125-210-000-000 16780 Total : 167.80 64909 2/23/2010 002740 FRUIT GROWERS SUPPLY 90466745 MAINTENANCE AND SUPPLIES 10-450-245-000-000 348 Total : 3.48 64910 2/23/2010 002901 G T AREA CHAMBER OF COMMERCE 5897-LUNCH Jan Lunch Mtq 10-110-270-000-000 1600 - - 10A 20-270-000-000 8.00 10-370-270-000-000 800 Page: 6 vchlist Voucher List Page: 7 02/17/2010 2:47:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 64910 2/23/2010 002901 G.T AREA CHAMBER OF COMMERCE (Continued) 5930-AD CITY CONTRIBUTION TO JOINT NEWSLETTER 10-125-213-000-000 87000 Total : 902.00 64911 2/23/2010 002795 GARCIA, LEE ANN Feb 2010 Feb Stipend/Auto Allowance 32-200-120-000-000 15000 10-110-273-000-000 146.06 Total : 296.06 64912 2/23/2010 010181 GOPHER PATROL Jan 2010 GOPHER CONTROL 10-450-245-000-000 52500 Total : 525.00 64913 2/23/2010 010164 GREAT-WEST 02122010 Def Comp for PRend 2/5/10 10-022-63-00 6,027.78 Total : 6,027.78 64914 2/23/2010 003020 GREENWOOD'S UNIFORM COMPANY 90097 UNIFORMS 10-180-218-000-000 98 92 Total : 98.92 64915 2/23/2010 010559 GST-JAGUAR JO1315289 HP Toner Cartidges 10-180-210-000-000 497.90 Total : 497.90 64916 2/23/2010 003152 HARPER & BURNS LLPN January 2010 January Leqal Services 10-160-250-000-000 9,112.63 32-200-251-000-000 9,112.62 Total : 18,225.25 64917 2/23/2010 010632 HIGH TECH SECURITY SYSTEMS 90254 SECURITY CAMERA MAINT AGREEMENT 10-180-246-000-000 2250 10-450-246-000-000 6250 Total : 85.00 64918 2/23/2010 003216 HOUSTON & HARRIS PCS, INC 10-15746 HYDROWASHING 21-573-602-000-000 4,39536 Page. 7 vchlist Voucher List Page: 8 02117/2010 2:47:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 64918 2/23/2010 003216 HOUSTON & HARRIS PCS, INC. (Continued) Total : 4,395.36 64919 2/23/2010 003224 HYDRO-SCAPE PRODUCTS INC 06241661-00 LAN DSCAPR/MAINTENANCE SUPPLIES 10-450-245-000-000 159.96 Total : 159.96 64920 2/23/2010 003540 INTERNATIONAL INSTITUTE #9471 Annual Membership-B. Mesa 10-125-265-000-000 125.00 Total : 125.00 64921 2/23/2010 003858 J.Z.'S PARTY CHARM SB-4210 " Rented Tables/Chairs Lost-G T. Day 23-200-12-00 403.30 Total : 403.30 64922 2/23/2010 010773 KELLAR SWEEPING INC. 5066 STREET SWEEPING SERVICES 16-900-254-000-000 3,150.00 Total : 3,150.00 64923 2/23/2010 003890 KELLY PAPER 3152785 18"x 24" Copy Paper 10-175-210-000-000 102.93 Total : 102.93 64924 2/23/2010 004350 LEAGUE OF CALIFORNIA CITIES, INLANCO2112010 3/4/10 I.E. Leaque Mtq-W. Stanckiewitz 10-110-270-000-000 35.00 Total : 35.00 64925 2/23/2010 010984 MERRILL, LYNN 02082010 Prepare CA Enerqy Efficiency Grant 10-172-250-000-000- 1,98000 Total : 1,980.00 64926 2/23/2010 010446 MILLER, JIM Feb 2010 February Stipends/Auto Allowance 32-200-120-000-000 150.00 10-110-120-000-000 250.00 10-110-273-000-000 200.00 Total : 600.00 64927 2/23/2010 005400 OFFICE DEPOT 507424804001 Toner 10-120-210-000-000 151.30 Page: 8 vchlist Voucher List Page: 9 02/17/2010 2:47:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 64927 2/23/2010 005400 OFFICE DEPOT (Continued) Total : 151.30 64928 2/23/2010 005586 PETTY CASH 02162010 C Care Petty Cash 10-440-210-000-000 1466 10-440-228-000-000 157.14 10-440-220-000-000 1801 10-440-223-000-000 59.50 10-440-221-000-000 42.02 23-200-14-00 51 90 Total : 343.23 64929 2/23/2010 006341 ROSENOW SPEVACEK GROUP INC 02082010 TAX INCREMENT, PASS THROUGH, STATEMENT 34-400-251-000-000 1,400.00 02082010a January Redev Plan Amendment Srvs 32-370-255-000-000 11,538.60 Total : 12,938.60 64930 2/23/2010 006531 S B COUNTY SHERIFF 9643 LAW ENFORCEMENT SERVICES 10-410-255-000-000 4,228.28 10-410-256-000-000 128,441.06 14-411-256-000-000 23,803 66 9665 2ND QTR 09/10 EXPENSES 10-410-220-000-000 17,050 55 10-410-701-011-000 859.04 10-410-250-000-000 5,861 96 10-410-256-000-000 1,50000 Total : 181,744.55 64931 2/23/2010 006435 SAN BERNARDINO, CITY OF 4824 ANIMAL SHELTER SERVICES 10-190-256-000-000 1,15000 Total : 1,150.00 64932 2/23/2010 010664 SHELL FLEET MANAGEMENT 8000209687002-January Maint Vehicle Fuel 10-180-272-000-000 422.26 16-900-258-000-000 1723 Total : 439.49 64933 2/23/2010 007005 SO CAL LOCKSMITH 10810 Keys & Labor for Sr Center Page: 9 vchlist Voucher List Page: 10 02/17/2010 2:47:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 64933 2/23/2010 007005 SO CAL LOCKSMITH (Continued) 10-805-245-000-000 18.70 Total : 18.70 64934 2/23/2010 006730 SO CA.GAS COMPANY January 2010 January Natural Gas 10-190-238-000-000 841 68 10-440-238-000-000 228.52 10-805-238-000-000 22359 10-180-272-000-000 7.80 10-440-272-000-000 2.60 34-800-272-000-000 2.60 Total : 1,306.79 64935 2/23/2010 010974 STANCKIEWITZ, WALT Feb 2010 Feb. Stipends/Auto Allowance 32-200-120-000-000 150.00 10-110-120-000-000 25000 10-110-273-000-000 20000 Total : 600.00 64936 2/23/2010 006778 STAPLES 816461001 Toner& copy paper 10-190-212-000-000 76 10 10-140-210-000-000 260.21 Total : 336.31 64937 2/23/2010 006778 STAPLES 1389337 8 002 E Lexmark Toner 10-808-210-000-000 8773 1389337 8 002 E DVDs 10-380-210-000-000 2505 3131244525 Copy paper and Misc. Office Supplies 10-172-210-000-000 78.67 3131890676 Print Cartridges 10-172-210-000-000 11598 7059493717 Copy Paper 10-190-212-000-000 17394 7059493717a Office Supplies 10-140-210-000-000 2041 Page: 10 r" vchlist voucher List Page: 11 02/17/2010 2:47:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 64937 2/23/2010 006778 STAPLES (Continued) 7059526607 OFFICE SUPPLIES 10-180-210-000-000 778 10-370-210-000-000 1745 34-800-210-000-000 941 Total : 536.42 64938 2/23/2010 006898 SYSCO FOOD SERVICES OF L.A. 002031277 FOOD & SUPPLIES 10-440-220-000-000 40709 Total : 407.09 64939 2/23/2010 011107 TAPIA, ADRIANNE 02162010 2/6/10 Park Reservation Refund 10-450-01 50.00 Total : 50.00 64940 2/23/2010 010397 TIM GODDARD'S PLUMBING 01212010 Find & Repair Gas Leak-Fire Station 10-180-706-000-000 3,09786 Total : 3,097.86 64941 2/23/2010 007034 TRANSPORTATION ENGINEERING 1003 Town Square Consulting 32-600-212-000-000 45500 1008 Dec. Traffic Engineering Services 10-175-255-000-000 1,28400 Total : 1,739.00 64942 2/23/2010 007539 VALLEY TIRE COMPANY 91279 VEHICLE MAINTENANCE 10-180-272-000-000 2000 Total : 20.00 64943 2/23/2010 007880 WEST GROUP 820072341 CA CODE UPDATES 10-125-250-000-000 432.29 Total : 432.29 64944 2/23/2010 007854 WESTERN EXTERMINATORS CO 469984 PEST CONTROL 10-180-245-000-000 8650 10-440-245-000-000 14400 10-805-245-000-000 3300 34-400-246-000-000 38.50 Page. 11 vchlist Voucher List Page: 12 02/17/2010 2:47:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 64944 2/23/2010 00785.4 WESTERN EXTERMINATORS CO (Continued) Total : 302.00 64945 2/23/2010 007920 WILLDAN 002-10015 PLAN CHECK SERVICES 10-172-250-000-000 1,74000 002-10017 PLAN CHECK SERVICES 10-175-255-000-000 1,98000 Total : 3,720.00 63 Vouchers for bank code : bofa Bank total : 327,106.91 63 Vouchers in this report Total vouchers : 327,106.91 Page. 12 i , I certify that to the best of my knowledge, the afore-listed checks for payment of City and Community Redevelopment Agency liabilities have been audited by me and are necessary and appropriate for the operation of City and Agency. Bernie Simon, Finance Director City of Grand Terrace Warrant Register Index FD No. Fund Name Dept No. Department Name General Account Numbers 10 GENERAL FUND 110 CITY COUNCIL 110 SALARIES/WAGES 11 Street Fund 120 CITY MANAGER 139 EMPLOYEES' BENEFIT PLAN 12 Storm Drain Fund 125 CITY CLERK 140 RETIREMENT 13 Park Fund 140 FINANCE 142 HEALTH/LIFE INSURANCE 14 AB 3229 COPS Fund 160 CITY ATTORNEY 143 WORKERS' COMPENSATION 15 Air Quality Improvement Fund 172 BUILDING&SAFETY 138/141 MEDICARE/SUI 16 Gas Tax Fund 175 PUBLIC WORKS 210 OFFICE EXPENSE 17 Traffic Safety Fund/TDA Fund 180 COMMUNITY 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 CITY OF GRAND TERRACE PENDING CITY COUNCIL APPROVAL CITY COUNCIL MINUTES REGULAR MEETING - FEBRUARY 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 February 9, 2010 at 6:00 p.m. ' PRESENT: Maryetta Ferre, Mayor Lee Ann Garcia, Mayor Pro Tern Bea Cortes, Councilmember Jim Miller, Councilmember 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 John Salvate, San Bernardino County Fire Department ABSENT: None CONVENE CITY COUNCIL MEETING The City Council meeting was opened with Invocation by Mayor Pro Tern Lee'Ann Garcia, followed by the Pledge of Allegiance led by Councilman Jim Miller. ITEMS TO ADDIDELETE -None SPECIAL PRESENTATIONS -None CONSENT CALENDAR CC-2010-1.0 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEMBER STANCKIEWITZ, CARRIED 5-0, to approve the following Consent Calendar Items: 3A. Approve Check Register Dated 02-09-2010 3B. Waive Full Reading of Ordinances on Agenda 3C. Approval of 01-26-2010 Minutes COUNCIL AGENDA ITEM NO.,3C,, Council Minutes 02/09/2010 Page 2 3D. Treasurer's Report for Quarter Ending December 31, 2009 3E. Historical & Cultural Activities Committee Minutes of 01/04/2010 PUBLIC COMMENT Charles Hornsby,22656 Brentwood Street, stated that a few months ago the first steps were being taken to raise the debt ceiling. He believes that the number was going from 15 million to 75 million. When you do the math, 75 million breaks down to $6,000.00 for every man, woman and child in Grand Terrace,that's using a 13,000 population. He feels that it is a lot of money and everyone seemed so casual about it at the meeting. He wonders if the City is acting a little big for its britches. He referred to a meeting that was held in the community room that had to do with a new apartment project in town. He indicated the new project is suppose to go on .83 acres and is comprised of 23 units. He stated that when you do the math it is 27.7 units per acre. He feels that this is a standard that is excessive. He feels that the Council should decide one way or the other on the fireworks and that it should be decided on the merits of the case not whether it is a good fundraiser. COUNCIL REPORTS Councilmember Jim Miller, questioned if the synchronisation of the signals on Barton was completed. Building and Safety/Public Works Director Richard Shields, responded that it was completed. Councilmember Miller, questioned if they are in sync. Building and Safety/Public Works Director Shields, responded that one of the complaints that they said we would have is in the mornings between 7:00 and 9:00 a.m. that the waits would be a little bit longer and also in the evenings starting at 3:00 to 6:00 p.m. to keep Barton Road Open. He stated that he would look into it and see if there is anything going on. He stated that there is a problem with Preston and they are working on that which should help. Councilmember Miller, questioned if there was a sink hole on Main Street. Building and Safety/Public Works Director Shields,responded that there was and it was on the Riverside County side of Main Street at Michigan and it was taken care of right away. Councilmember Stanckiewitz, stated that he attended the same meeting that Mr. Hornsby attended on the 23 units on Canal Street. He feels that it is a good idea and a great place for that particular project. It had quite a few amenities including a recreation room,picnic area, Council Minutes 02/09/2010 Page 3 bbq,and a tot lot. The three story buildings might be an issue and encouraged residents that want to be involved in what goes on with that project to participate in the process as it moves along. He feels that it is a highlight that a local builder will be doing the project. The Chamber Mixer will be at the Thai Kitchen on Thursday from 5:30 to 7:30 p.m. and encouraged everyone to check it out. He stated that anyone that is out of a job,the Census Bureau is looking for people. It will be approximately ten weeks of employment that ranges ty from $15.00 to $18.50 per hour. Contact information is available at City Hall. Mayor Ferr6, reported that there is another Grand Terrace Reads and the book that was selected is Three Cups of Tea, One Mans Mission to Promote Peace One School at a Time. Not only is this a very important book and one that is very popular, there is also an edition that is written for teens that is called Three Cups of Tea One Mans Journey to Change the World One Child at a Time. There is also an edition written with the same theme for children pre-teens called Listen to the Wind,the Story of Dr. Greg and Three Cups of Tea. This is a perfect opportunity for the residents of Grand Terrace to all read the same book. There will be some adult events for self guided discussions at the library, February 17, 22, 25 and three of them in March. On March 10 Greg Mortenson,who is the author of the book will be speaking at the University of Redlands Memorial Chapel. The University of Redlands has given the Grand Terrace Branch Library a limited number of tickets and will be given out in a drawing during one of the discussion groups. There is a teen and kid event in March. She thanked Librarian Erin Christmas for putting this together. PUBLIC HEARINGS 6A. An Ordinance of the City Council of the City of Grand Terrace, California Rescinding the Traffic Signal Improvement and Arterial Improvement Fee Schedule (4.104) and Replacing it with a New Fee Structure Community and Economic Development Director Joyce Powers, gave an overview of the proposed fees and how they were established. Mayor Ferr6 opened the Public Hearing for discussion, there being none she returned discussion to the Council. CC-2010-11 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEMBER STANCKIEWITZ, CARRIED 5-0, to approve the first reading of an Ordinance of the City Council of the City of Grand Terrace, California Rescinding the Traffic Signal Improvement and Arterial Improvement Fee Schedule(4.104)and Replacing it with a New Fee Structure. 6B. Community Development Block Grant(CDBG)Program Year 2010-11 Prioritization of Funds Council Minutes 02/09/2010 Page 4 Community and Economic Development Director Joyce Powers, reported that the County has indicated the City can expect a total of$74,379 for fiscal year 2010-11, which is a 9% increase over last year. The City is required to set aside a minimum of$16,281 for the Senior Home Repair Program. The remaining funds of $58,098 are available, for prioritization by the City Council. There were a number of applications received and after staff reviewed the applications they are recommending the following list for funding: Senior Home Repair Program $16,281 Senior Home Repair Program $1,602 San Bernardino County Library, Grand Terrace Branch, $10,000 Family Service Association, Grand Terrace Senior Center Nutrition Program, $3,000.00 City of Grand Terrace, Disabled Access at City Hall, $43,496.00 (Capital Project) Mayor Ferre opened the Public Hearing. Tenecia Newton,Ontario Christian Center,gave an overview of their program and requesting that their organization be funded. Mayor Ferre closed the Public Hearing and returned discussion to Council. CC-2010-14 MOTION BY COUNCILMEMBER CORTES, SECOND BY MAYOR PRO TEM GARCIA, CARRIED 5-0, to direct staff to submit the following funding list to the County of San Bernardino,Department of Economic and Community Development for the 2010-11 Community Development Block Grant(CDBG) funding year: Senior Home Repair Program $16,281 Senior Home Repair Program $1,602 San Bernardino County Library, Grand Terrace Branch, $10,000 Family Service Association, Grand Terrace Senior Center Nutrition Program, $3,000.00 City of Grand Terrace, Disabled Access at City Hall, $43,496.00 (Capital Project) UNFINISHED BUSINESS 7A. Second Reading of an Ordinance of the City Council of the City of Grand Terrace Adding Chapter 15.56 to Title 15 of the Grand Terrace Municipal Code Establishing a Water Efficient Landscape Ordinance CC-2010-13 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY MAYOR FERRE, CARRIED 5-0,to approve the Second Reading of an Ordinance of the City Council of the City of Grand Terrace Adding Chapter 15.56 to Title 15 of the Grand Terrace Municipal Code Establishing a Water Efficient Landscape Ordinance. Council Minutes 02/09/2010 Page 5 NEW BUSINESS -None CLOSED SESSION 9A. Closed Session - Conference with Real Property Negotiators (Government Code Section 54956.8) Pro e - APN 0275-231-17 (21975 Grand Terrace Road) Agency Ne otiator- Betsy M. Adams Under Negotiation- Price and Terms of Payment Mayor Ferrd announced that the Council met in Closed Session to have a conference with Real Property Negotiators for properties APN 0275-231-17 and that there was no reportable action taken. Mayor Ferrd adjourned the meeting at 6:40 p.m., until the next City Council Meeting which is scheduled to be held on Tuesday, February 23, 2010 at 6:00 P.M. CITY CLERK of the City of Grand Terrace MAYOR of the City of Grand Terrace PLEASE SEE ITEM 2 UNDER CRA FOR COMPLETE REPORT. �J COUNCIL AGENDA ITEM NO. �� CITY OF GRAND TERRACE , t., i I f EMERGENCY OPERATIONS COMMITTEE Regular Meeting -3 MINUTES ::ITY OF GRAND "TERRACE December 1,2009 ITY('L ERK'S r9PARTMENT 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 at 6:00 p.m. Agendas and minutes were distributed. —= MEMBERS PRESENT—Vic Pfennighausen, Randy Halseth, Glenn Nichols, Debra Hurst, Jim Vert, Lew Neeb, Susan Taylor and JoAnn Johnson. MEMBERS ABSENT—Hanni Bennett and Oscar•Santana. CITY STAFF—Matt Wirt GUESTS PRESENT/INTRODUCTIONS—None. CORRESPONDANCE/COMMUNICATIONS—Application from Pete Parsons for Alternate .Member status. APPROVAL OF AGENDA with motion by Glenn Nichols and second by Susan Taylor. APPROVAL OF MINUTES OF,NOVEMBER,3,2009 with the deletion of one sentence under Liaison Report regarding repayment of some funds. Motion by Debra,Hurst and second by Randy Halseth. Deletion of sentence will be made before going to Council. LIAISON REPORT by Matt Wirz. a. Grant funds have been received and processed. Sample for new Travelers Radio signs have been sent in and should be shipped within the next two days. Some other items have been purchased. b. Will check into microphones and headsets at Best Buy or other sources. We do have a mike and headset so this is not an urgent item. c. Update on Pete Parsons who did have another minor stroke, but this will-probably not prevent him from working on the Radio programming. d. The Country Fair was very well attended and went very well. Lots of great food. e. December 81h will be the city's 3 1" Birthday Party at 6 pm followed by City Council at 7:30 pm. Vic would like to have this information on the Travelers Radio. f. Vic thanked.Matt for all he does for the Broadcast Radio. Both in getting equipment and in posting information. Vic has been removing outdated infonmation. g. Matt would like to build up a data base for the radio and has articles in the Blue Mountain Outlook requesting ideas from the public. h. Debra would like to see items at certain times, but it seems our radio system does not have that capability,at this time. Perhaps in the future. COUNCIL AGENDA ITEM NO. -jt 1 EQUIPMENT AND FACILITIES REPORT by Vic Pfennighausen a. A reminder to all members to keep their MURS radios charged and ready to use at all times. Also, would like much more participation on the Monday evening MURS radio net. b. Report on buying for Broadcast Radio a pre-amp and mixer. Found we don't need to buy both since the mixer has a built in pre-amp. Vic was offered a used one for approximately half price. Matt will be looking into this. c. Will try to set up computer in EOC just for the Travelers Broadcast Radio. d. Will buy new gas cans and will have to buy paint for container. There was much discussion on the difficulty of purchasing smaller items. Randy offered to do the painting. e. A relay is going out on our big generator behind the building. Vic will be talking to the service providers and see if it can be repaired for a reasonable price. UNFINISHED BUSINESS a. Vic still wishes to be relieved of the Chairperson position. There was discussion on some possibilities, but no resolutions. b. JoAnn needs to be relieved of the Secretary position. Susan Taylor will become the new Secretary at the January meeting. Thank You Susan! NEW BUSINESS a. Vic really needs help on Monday afternoons. Randy indicated that he would be there and perhaps others will also. b. Seven people graduated from the most recent CERT class. There will be a training exercise tonight before the regular CERT meeting. c. CERT did take names at Country Fair but did not get any real sign-up's. d. The application of Pete Parsons as an Alternate Member was discussed and Lew Neeb made the motion that he be accepted Debra seconded and the vote was unanimous e. The Secretary indicated that she would make an action item to be sent to City Council but Matt indicated that this had already been taken care of and that the application would be acted on at the December 8rh Council Meeting. TRAINING/SPEAKERS—Nothing planned at this time. ADJOURNMENT at 6:57 p.m. oAnn Johnson, ecretary NEXT MEETING WILL BE TUESDAY, JANUARY 5, 2010 AT 6 P.M. CITY OF GRAND TERRACE H E F �� EMERGENCY OPERATIONS COMMITTEE ED Regular Meeting FEB 1) : 2010 MINUTES January 5,2010 CITY OF GRAND TERRACE CITY CLERK'S DEPARTMENT 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 at 6:00 p.m. Agendas and minutes were distributed. MEMBERS PRESENT—Vic Pfennighausen, Glenn Nichols, Debra Hurst, Jim Vert, Susan Taylor, JoAnn Johnson,and Hanni Bennett MEMBERS ABSENT— Randy Halseth, Lew Neeb, and Oscar Santana. CITY STAFF—Bettsy Adams and Matt Wirz GUESTS PRESENTANTRODUCTIONS—Margie Miller. CORRESPONDANCE/COMMUNICATIONS—None APPROVAL OF AGENDA with motion by Debra Hurst and second by Hanni Bennett. APPROVAL OF MINUTES OF December 1,2009 Motion to'approved as presented by Debra Hurst and second by Randy Glenn Nichols LIAISON REPORT by Matt Wire. a. The Travelers Radio was not very active the month of December. Matt has not received many suggestions for new topics from`the group-to include on the broadcast, but he and Pete Parsons have been in discussion on new ideas. Pete has returned from vacation and is looking forward to working with us on the AM Radio Station. b. EMPC Grant funds in the amount of$4,000 have been received. Matt-is looking at a Whisper Quiet generator in the-amount of$3,700 plus tax, but will contact San Bernardino County to ask if we can manage with a lower capacity generator for a lower cost. c. The HSG(Homeland Security Grant) has been approved in the amount of$4,000 for a computer for the EOC and some software. d. Joyce Powers has been working with the Disney Company to be part of the Work a Day- Get a Day program. We were approved for 100 passes to Disneyland that have been filled already and a back up list has been started. e. Wall painting will held on February 27, 2010 f. Hike up Blue Mountain is scheduled for March 13, 2010. Dog licensing clinic is scheduled for January'14, 2010`from 6:00 to 8:00 p.m. Fhe AVID chip will be offered for$20.00 and rabies shots for $6.00. License renewal will also be available. "QUIPMEN'r AND FACILITIES REPORT by Vic Pfennighausea r. Vic is in process of getting a mixer and pre-empt ,or the Broadcast Radio. %latt iias dome i lot of research and keeps Vic Informed of what goes on oind is also making Dash dnves :Or the digital player. 3 - i b. Debra suggested that some broadcast could be played at certain times in the day to keep it interesting by changing the program periodically. c. The diesel generator when full is 120 gallons. It needs to be topped off and have additives added periodically. This and batteries for backup, fuses and a cabinet are all budgeted items. UNFINISHED BUSINESS a. Vic will resign as chairperson of the EOC as of March 31, 2010. As we do not have a candidate, open discussion was held." Sue asked'if it was a possibility to have a city istaff person assigned to,take on some of the duties.' Matt is concerned that he has neither' permission nor the time to designate to the EOC, nor is position funded by any of the Emergency Grants. JoAnn mentioned that Randy is invested in CERT and that the fireman he mentioned has not come forward to say he is interested. Debra asked Vic what duties the position would entail and could they be split among some of the EOC members. b. Vic listed the following duties: ■ Communicate with the San Bernardino County EOC. Get to know them ■ Develop and implement 1 to 2 exercises a year ■ Develop and monitor the budget ■ Work jointly with CERT ■ Upkeep of the Broadcast Radio station and antennas—Vic will continue to handle this. ■ Events i.e. wall painting, Grand Terrace Days and Hike up Blue Mountain, all use our equipment and need to be tracked. { ■ Person needs to live in the city,and be readily available at all times i ■ Mechanical equipment repair. We agreed to table this item until the meeting in February. NEW BUSINESS a. Work days in EOC- Anyone available from 1:00 to 3:00 p.m. on Mondays can volunteer. Sue said she will be there this coming Monday. - b. No report was given on CERT due to Randy's absence. TRAINING/SPEAKERS—Nothing planned at this time. i ADJOURNMENT at 7:05 p.m. I Sue Taylor, Secret i NEXT MEETING WILL BE TUESDAY, February 2, 2010 AT 6 P.M. PLEASE SEE ITEM 5 UNDER CRA FOR COMPLETE REPORT. COUNCIL AGENDA ITEM NO. �}- 9' �ALIIF�R91A AGENDA REPORT MEETING DATE: February 23, 2010 Council Item( X ) CRA Item ( ) TITLE: Sales, Use and Transactions Tax Audit Services PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: Approve the attached Professional Consultant Services Agreement in the amount of$3,900 per year between the City and Hinderliter, deLlamas, and Associates for Tax Audit Services. BACKGROUND: The City currently uses the services of Hinderliter, deLlamas, and Associates (HdL) for annual sales tax data. HdL also offers services to forecast sales and use tax, and to audit the State Board of Equalization's sales tax collection and distribution to the local agencies. The City does not 1 utilize the forecasting or auditing services at this time. DISCUSSION: HdL has proposed to provide these additional services to ensure the City is receiving the appropriate share of sales tax collected by the State. The cost to the City would be $3,900.00 per year, plus 15% of all new sales, transactions, and use tax received as a result of their work. The company is highly recommended for their revenue recovery expertise, and staff is familiar with their work. Staff recommends approval of the attached Professional Consultant Services Agreement as a sole source contract, without requesting additional proposals. The Agreement would expire on June 30, 2012, and as proposed, allows the City Manager to extend the term up to two years. A progress report will be provided to the City Council on a quarterly basis. FISCAL IMPACT: General Fund costs for this contract for the remainder of fiscal year 2009-10 would be $975.00 and are included in the proposed mid-year budget adjustments. In subsequent years, funds will be appropriated through the annual budget process. At this time, it is difficult to forecast what affect the audit may have on the City's sales, use, and transactions tax revenue. HdL is also compensated 15% of new revenue. COUNCIL AGENDA ITEM NO. Respectfully submitted, J ce _ owers Community and Economic Development Director Bernie Simon Finance Director Manager Approval: Betsy Nf Adams City Manager and CRA Executive Director ATTACHMENT: Professional Consultant Services Agreement between the City and Hinderliter, deLlamas and Associates ,014h,13TI AIJA90A _913OU00 PROFESSIONAL CONSULTANT SERVICES AGREEMENT Hinderliter, deLlamas and Associates Sales,Use and Transactions Tax Audit Services THIS PROFESSIONAL CONSULTANT SERVICES AGREEMENT ("Agreement") is made and entered into this day of February, 2010, ("Effective Date") by and between the CITY OF GRAND TERRACE ("City"), a public entity, and Hinderliter, deLlamas and Associates, ("Consultant"). 1. Scope of Services. City agrees to retain and does hereby retain Consultant and Consultant agrees to provide the services more particularly described in Exhibit "A", "Scope of Services and Fees", attached hereto and incorporated herein by reference, in conjunction with Sales Tax Revenue Management Services("Services"). 2. Term. This Agreement shall be effective on the date first written above unless otherwise provided in Exhibit"A" and the Agreement shall remain in effect until June 30, 2012, unless otherwise terminated pursuant to the provisions herein. This Agreement may be extended up to two years at the discretion of the City Manager. 3. Compensation/Payment. Consultant shall perform the Services under this Agreement for fees not to exceed $3,900.00 (Three Thousand Nine Hundred Dollars) annually plus 15% of all new sales, transactions and/or use tax revenue received by the City as a result of work performed by the Consultant, payable in accordance with the terms set forth in Exhibit "A". Said payment shall be made in accordance with the City's usual accounting procedures upon receipt and approval of an invoice setting forth the services performed. The invoices shall be delivered to the City at the address set forth in Section 4 hereof. . 4. Notices. Any notices required to be given hereunder shall be in writing and shall be personally served or given by mail. Any notice given by mail shall be deemed given when deposited in the United States Mail,'certified and postage prepaid, addressed to the party to be served as follows: To Ci : To Consultant: City of Grand Terrace Hinderliter, de Llamas, &Associates Attn: Bernie Simon, Finance Director 1340 Valley Vista,Drive#200 22795 Barton Road Diamond Bar, California 91765 Grand Terrace,California 92313 5. Prevailing Wage. If applicable, Consultant and all subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the Page 1 of 11 3 California Labor Code and implemented be the City Council of the City. The Director's determination is on file and open to inspection in the office of the City Clerk and is referred to and made a part hereof; the wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein. 6. Contract Administration. A designee of the City will be appointed to administer this Agreement on behalf of the City and shall be referred to herein as Contract Administrator. 7. Standard of Performance. While performing-the Services, Consultant shall exercise the reasonable professional care and skill customarily exercised by reputable members of Consultant's profession practicing in the Metropolitan Southern California Area, and shall use reasonable diligence and best judgment while exercising its professional skill and expertise. 8. Personnel. Consultant shall furnish all personnel necessary to perform the Services and shall be responsible,for their performance and compensation. Consultant recognizes that the qualifications and experience of the personnel to be used are vital to professional and timely completion of the Services. The key personnel listed in Exhibit "B" attached hereto and incorporated herein by this reference and assigned to perform portions of the Services shall remain assigned through completion of the Services, unless otherwise mutually agreed by the parties in writing, or caused by hardship or resignation in which case substitutes shall be subject to City approval. 9. Assignment and Subcontracting.-Neither party shall transfer any right, interest, or obligation in or under this Agreement to any'other entity without prior written consent of the other party. In any event, no assignment shall be made unless the assignee expressly assumes the obligations of assignor under this Agreement, in a writing satisfactory to the parties. Consultant shall not subcontract any portion of the work required by this Agreement without prior written approval by the responsible City's Contract Administrator. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including without limitation, the insurance obligations set forth in Section 12. Consultant acknowledges that any transfer of rights may require City Manager and/or City Council approval. I 10. Independent Contractor. In the performance of this Agreement, Consultant, and Consultant's employees, subcontractors and agents, shall act in an ,independent capacity as independent contractors, and not as officers or employees of the City of Grand Terrace. Consultant acknowledges and agrees that City has no obligation to pay or withhold state or federal taxes or to provide workers' compensation or unemployment insurance to Consultant, or to Consultant's employees, subcontractors and agents. Consultant, as an independent contractor, shall be responsible for any and all taxes that apply to Consultant as an employer. 11. Indemnification. 11.1 Indemnity. Except as to the sole negligence or willful misconduct of the City, Consultant shall defend, indemnify and hold the City, and-its officers, employees and agents, Page 2 of l I a harmless from any and all loss, damage, claim for damage, liability, expense or cost, including attorneys' fees, which arises out of or is in any way connected with the performance of work under this Agreement by Consultant or any of the Consultant's employees, agents or subcontractors and from all claims by Consultant's employees, subcontractors and agents for compensation for services rendered to Consultant .in the performance of this Agreement, notwithstanding that the City may have benefitted from their services. This indemnification provision shall apply to any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of Consultant or of Consultant's employees, subcontractors or agents. 'Except as to the sole negligence or willful misconduct of the Consultant, City shall defend, indemnify and hold the Consultant,,and its officers, employees and agents, harmless from any and all loss, damage, claim for damage, liability, expense or cost, including attorneys' fees, which arises out of or is in any way connected with the performance of work under this Agreement by City. This indemnification provision shall apply to any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of City and its employees, subcontractors or agents. 12. Insurance. 12.1 General Provisions. Prior to the City's execution of this Agreement, Consultant shall provide satisfactory evidence of, and shall thereafter maintain during the term of this Agreement, such insurance policies and coverages in the types, limits, forms and ratings required herein. The rating and required insurance policies and coverages may be modified in writing by the City's Risk Manager or City Attorney, or a designee, unless such modification is prohibited by law. 12.1.1 Limitations. These minimum amounts of coverage shall not constitute any limitation or cap on Consultant's indemnification obligations under Section 11 hereof. 12.1.2 Ratings. Any insurance policy or coverage provided by Consultant or subcontractors as required by this Agreement shall be deemed inadequate and a material breach of this Agreement, unless such policy or coverage is issued by insurance companies authorized to transact insurance business in the State of California with a policy holder's rating of B+ or higher and a Financial Class of VII or higher. 12.1.3 Cancellation. The policies shall not be canceled unless thirty (30) days prior written notification of intended cancellation has been given to City by certified or registered mail, postage prepaid. 12.1.4 Adequacy. The City, its officers, employees and agents make no representation that the types or limits of insurance specified to be carried by Consultant pursuant to this Agreement are adequate to protect Consultant. If Consultant believes that any required insurance Page 3 of 11 5 coverage is inadequate, Consultant will obtain such additional insurance coverage as Consultant deems adequate, at Consultant's sole expense. ; 12.2 Workers' Compensation Insurance: By-executing this Agreement, Consultant certifies that Consultant is aware of and will comply with Section 3700 of the Labor Code of th'e State of California requiring every employer to be insured against liability for workers' compensation, or to undertake self-insurance before commencing any of the work. Consultant shall carry the insurance or provide for self-insurance required by California law to protect said Consultant from claims under the Workers' Compensation Act. Prior to City's execution of this Agreement, Consultant shall file with City either (1) a certificate of insurance showing that such insurance is in effect, or that Consultant is self-insured for such coverage, or (2) a certified statement that Consultant has no employees, and acknowledging that if Consultant does employ any person, the necessary certificate of insurance will immediately be filed with City. Any certificate filed with City shall provide that City will'be given ten (10) days prior written notice before modification or cancellation thereof. 12.3 Automobile Insurance. Prior to City's execution of this Agreement, Consultant shall obtain, and shall thereafter maintain during the term of this Agreement, automobile liability insurance as required to insure Consultant against damages for personal injury, including accidental death, as well as from claims for property damage, which may arise from or which may concern operations by anyone directly or indirectly employed by, connected with, or acting for or on behalf of Consultant. The City,and its officers, employees and agents, shall be named as additional insureds under the Consultant's insurance policies. 12.3.1 Consultant's automobile liability policy shall cover both bodily injury and J property damage in an amount not less than $500,000 per occurrence and an aggregate limit of not less than $1,000,000. All of Consultant's automobile and/or commercial general liability insurance policies shall cover all vehicles used in connection with Consultant's performance of this Agreement, which vehicles shall include, but are not limited to, Consultant owned vehicles, Consultant leased vehicles, Consultant's employee vehicles; non-Consultant owned vehicles and hired vehicles. ' 12.3.2 Prior to City's execution of this Agreement, copies of insurance policies or original certificates and additional insured endorsements evidencing the coverage,required by this Agreement, for automobile liability insurance, shall be filed with the City and shall include the City and its officers, employees and agents, as additional insureds. Said policies shall be in the usual form of commercial general and automobile liability insurance policies, but shall include the following provisions: It is agreed that the City of Grand Terrace and its officers, employees and agents; are added as additional insureds under this policy, solely for work done by and on behalf of the named insured for the City of Grand Terrace. Page 4 of 11 t 12.4, Errors, and Omissions Insurance. Prior to City's execution of this Agreement, Consultant shall obtain, and shall'thereafter maintain during the term of this Agreement, errors and omissions professional liability insurance in the minimum amount of$1,000,000 to protect the City from claims resulting from the Consultant's activities. 12.5 Subcontractors' Insurance. Consultant shall require all of its subcontractors to carry insurance, in an amount sufficient to cover the risk of injury, damage or loss,that may be caused by the subcontractors' scope of work and activities provided in furtherance of this Agreement, including, but without-limitation, the following coverages: Workers Compensation (except for a sole proprietor), Commercial General Liability, and Automobile liability. Upon City's request, Consultant shall provide the City with satisfactory evidence that Subcontractors have obtained insurance policies and coverages required by this section. 13. Business Tax. Consultant understands that the Services performed under this Agreement constitutes doing business in the.City of Grand Terrace, and Consultant agrees that Consultant will register for and pay a business tax pursuant to Chapter 5.04 of the Grand Terrace Municipal Code and keep such tax certificate current during the term of this Agreement. 14. Time of Essence. Time is of the essence for each and every provision of this Agreement. 15. City's Right to Employ Other Consultants. City reserves the right to employ other Consultants in connection with the Project. 16. Accounting Records. Consultant shall maintain complete and accurate records with respect to costs incurred under this Agreement.. All such records shall be clearly.identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 17. Confidentiality. All ideas, memoranda, specifications, plans; procedures, drawings, descriptions,.computer program'data, input record data, written information, and other materials either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant, except as otherwise directed by City's Contract Administrator. Nothing furnished to Consultant which is otherwise known to the Consultant or is generally known, or has become known, to the related.industry shall be deemed confidential. Consultant shall not use City's name or insignia,photographs of the Project, or any publicity pertaining to the'Services or the Project in any magazine,,trade paper, newspaper, television or radio production, website, or other similar medium without the prior written consent of the City. 18. Ownership of Documents. All contracts and invoices prepared under this Agreement by Consultant shall be and remain the property of City upon City's compensation to 5 7 I t Consultant for its services as herein provided. Consultant shall not release to others,information furnished by City without prior express written approval of City. 19. Conflict of Interest. Consultant, for itself and on behalf of the individuals listed in Exhibit "B", represents and warrants that by the execution of this Agreement, they have no interest, present or contemplated, in the Project affected by the above-described Services. Consultant further warrants that neither Consultant,nor the individuals listed-in Exhibit"B"have any real property, business interests or income interests that,will be affected by this project or, alternatively, that Consultant will file with the City an affidavit disclosing any such interest. I 20. Solicitation. Consultant warrants that Consultant has not employed or retained any person or City to solicit or secure this Agreement, nor has it entered into any agreement or understanding for a commission, percentage, brokerage, or contingent fee to be paid to secure this Agreement. For breach of this warranty, City shall have the right to terminate this Agreement without liability and pay Consultant only for the value of work Consultant has actually performed, or, in its sole discretion,, to deduct from the Agreement price or'otherwise recover from Consultant the full amount of such commission, percentage, brokerage o'r commission fee. The remedies specified in this section shall be in addition to and not in lieu of those remedies otherwise specified in this Agreement. 21. General Compliance with Laws. Consultant shall keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Consultant, or in any way affect the performance of services by Consultant pursuant to this Agreement. Consultant shall at all times observe and comply with all such laws,.ordinances and regulations, and shall be solely responsible for any failure to comply with all applicable laws, ordinances and regulations. 22. Amendments. This Agreement may be modified or amended only by a written Agreement and/or change order executed by the Consultant'and City. 23. Termination. City, by notifying Consultant in writing, shall have the right to terminate any or all of Consultant's services and work covered by this Agreement at any time. In the event of such termination, Consultant may submit Consultant's final written statement of the amount of Consultant's services as of the date`of such termination based upon the ratio that the work completed bears to the total work required to make the report complete, subject to the City's rights under Sections 15 and 24 hereof. In ascertaining the work actually rendered through the termination date, City shall consider completed work, work in progress and complete and incomplete reports and other documents only after delivered to City. 23.1 Other than as stated below, City shall give Consultant thirty (30) days prior written notice prior to termination. 23.2 City may terminate this Agreement upon fifteen (15) days written notice to Consultant, in the event: Page 6 of 11 23.2.1 Consultant substantially fails to perform or materially breaches the Agreement; or 23.2.2 City decides to abandon or postpone the Project. 24. Successors and Assigns. This Agreement shall be binding upon City and its successors and assigns, and upon Consultant and its permitted successors.and assigns, and shall not be assigned by Consultant, either in whole or in part, except as otherwise provided in paragraph 9 of this Agreement. 1 25. Venue and Attorneys' Fees. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of San Bernardino, State of California, and the parties hereby.waive all provisions of law providing for a change of venue in such proceedings to any other county. In the event either party hereto shall bring suit to enforce any term of this Agreement or to recover any damages for and on account of the breach of any term or condition of this Agreement, it is mutually agreed that the prevailing party in such action shall recover all costs thereof, including reasonable attorneys' fees, to be set by the court in such action. 26. Nondiscrimination.During Consultant's performance of this Agreement, Consultant shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition, including the medical condition of Acquired Immune Deficiency Syndrome (AIDS)'or any condition related thereto, marital status, sex, or sexual orientation, in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Further, Consultant agrees to conform to the requirements of the Americans with Disabilities Act in the performance of this Agreement. 27. Severability. Each provision,term, condition, covenant and/or restriction, in whole and in part, of this Agreement shall be considered severable. In the event any provision, term, condition, covenant and/or restriction, in whole and/or in part, of this Agreement is declared invalid, unconstitutional, or void for any reason, such provision or part thereof shall be severed from this Agreement and shall not affect any other provision, term, condition, covenant and/or restriction of this Agreement, and the remainder of the Agreement shall continue in full force and effect. 28. Authority: The individuals executing this Agreement and the instruments referenced herein on behalf of Consultant each represent and warrant that they have the legal power, right and actual authority to bind Consultant to the terms and conditions hereof and thereof. 29. Entire Agreement: This Agreement constitutes the final, complete, and exclusive statement of the terms of the agreement between the parties pertaining to the subject matter of this Agreement, and supersedes all prior and contemporaneous understandings or agreements of Page 7 of 11 A I . the parties. Neither party has been induced to enter into this Agreement by, and neither party is relying on, any representation or warranty outside those expressly set forth in this Agreement. 30. Interpretation: City and Consultant acknowledge and agree that this Agreement is the product of mutual arms-length negotiations and accordingly, the rule of construction, which provides that the ambiguities in a document shall be construed against the drafter of that document, shall have no application to the interpretation and enforcement of this Agreement. 30.1 Titles and captions are for convenience,of reference only and do not define, describe or limit the scope or the intent of the Agreement or any of its terms. Reference to section numbers are to sections in the Agreement unless expressly stated otherwise. ' I '30.2 This Agreement shall be governed by and construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. 31.3 In the event of a conflict between the body of this Agreement and Exhibit "Al' hereto, the terms contained in Exhibit"A" shall be controlling. • 32. Exhibits. The following exhibits attached hereto are incorporated herein to this Agreement by this reference: Exhibit"A"—Scope of Work, Schedule, and Fees Exhibit"B" - Personnel i IN WITNESS WHEREOF City and Consultant have caused this Agreement to be duly executed the day and year first above written. i CITY OF GRAND TERRACE, Consultant A Public Entity Hinderliter,de Llamas, & Associates r By: City Manager By: APPROVED AS TO FORM: Lloyd de Llamas President City Attorney ' Page S of'l1 1C EXHIBIT A SCOPE OF SERVICES, FEES AND CONFIDENTIALITY The scope of services provided by CONTRACTOR: SALES AND USE TAX SYSTEM 1. Examine all sales, use and transactions tax records of the Board of Equalization pertaining to sales, use and transactions taxes collected by the Board on behalf of the City of Grand Terrace. Perform ongoing allocation audits in order to identify and correct distribution errors and thereby generate previously unrealized sales, use and transactions taxes income for the City. 3. Contact the appropriate management and accounting officials in companies that have businesses where a probability of error exists to verify whether current tax receipts accurately reflect the local sales activity. Such contacts will be conducted with the utmost courtesy and in a manner to encourage local business retention and expansion. Provide a report of all contacts and the results thereof. 4. Prepare and submit to the Board of Equalization all information necessary to correct any allocation errors that are identified and follow up with the individual businesses and the State Board of Equalization to ensure that all back quarterly ,- payments due the City are recovered. t� 5. Provide quarterly analysis, customized newsletters, software, quarterly computer updates, and on-call assistance on sales, use and transactions tax issues. Work with the City's staff to track economic performance of specified project areas, help identify economic voids and opportunities and provide data support and advice on alternate development strategies and business retention programs. 6. Provide quarterly invoices to the City of Grand Terrace which will include the business name, audit period start date, permit number, local allocation amount received by County and the amount due contractor. Provide applicable State Board of Equalization quarterly distribution report documents for the purpose of verifying and cross-referencing invoice amounts. COMPENSATION Sales/Use Tax Audit CONTRACTOR shall receive fifteen percent (15%) of all new sales and use tax revenue received by the City as a result of audit and recovery work performed by the firm including any reimbursement from the sales and use tax compensation fund as outlined in Section 97.68 of the Revenue and Taxation Code. 11 This fee applies to State fund transfers received for back quarter reallocations. The fee also applies to monies received in the first eight consecutive reporting quarters following completion of the audit by CONTRACTOR. CONTRACTOR shall provide CITY with an itemized quarterly invoice showing all formula calculations and amounts due for audit fees. CONTRACTOR shall also provide hard copies of relevant portions of the State Board of Equalization monthly fund allocation cash receipts listing in order to verify correction amounts. CONTRACTOR shall obtain City approval prior to beginning the work of correcting tax reporting methodology or "point of sale" for specific businesses where said payment of the percentage fee will be expected. Said approval shall be deemed given when the City's designated representative signs a Sales Tax Audit Authorization form identifying the specific tax accounts to be corrected. City shall pay, audit fees upon CONTRACTOR's submittal of evidence of State Fund Transfers and payments to City from businesses identified in the audit and approved by the City. In no case shall CONTRACTOR bill for audit revenues until City has actually received said monies. If during the billing cycle, a taxpayer receives a refund for overpayment of taxes generated during-that cycle, CONTRACTOR shall credit back " any proportionate share of the fee that may have been levied. Econ/Budget $325 per month billed quarterly. This includes a quarterly Analysis, Software analysis, customized newsletters, software, quarterly computer & Staff Support updates and being "on call" to provide second opinions on sales tax estimates for proposed projects and/or annexations, helping ; target business retention possibilities, assistance with budget projections and serving as a resource for sales, transactions and use tax questions related for economic development, budgeting and business license collection. The sums described above shall constitute full reimbursement to CONTRACTOR for all direct and indirect expenses incurred by CONTRACTOR in performing audits including the salaries of CONTRACTOR's employees, and travel expenses connected- with contacting local and out-of-state businesses and Board of Equalization representatives. The agreement may be terminated by either party by giving 30 days written notice to the other of such termination and specifying the effective date thereof. 1�' CONFIDENTIALITY.PROPRIETARY INFORMATION AND CITY NOTIFICATION 1. Section 7056 of the State of California Revenue and Taxation code specifically limits the disclosure of confidential taxpayer information contained in.the records of the State Board of Equalization. ;This section specifies the conditions under which a County may authorize persons other than City officers and employees to examine State Sales and Use Tax records. The following conditions specified in Section 7056 (b), (1) of the State of California Revenue and Taxation Code are hereby made part of this agreement. A. CONTRACTOR is authorized by this Agreement to examine sales, use or transactions and use tax records of the Board of Equalization provided to County pursuant to contract under the Bradley-Burns Uniform Sales and Use Tax Law. B. CONTRACTOR is required to disclose information contained in, or derived from, those sales, use or transactions and use tax records only to an officer or employee of the city who is authorized by resolution to examine the information. C. CONTRACTOR is prohibited from performing consulting services for a 7' retailer as defined in California Revenue & Taxation Code Section 6015, �1 during the term of this agreement. D. CONTRACTOR is prohibited from retaining the information contained in, or derived from those sales or transactions and use tax records, after this agreement has expired. Information obtained by examination of Board of Equalization records shall be used only for purposes related to collection of local sales and use tax or for other governmental functions of the CITY as set forth by resolution adopted pursuant to Section 7056 (b) of the Revenue and Taxation Code. The Resolution shall designate the CONTRACTOR as a person, authorized to examine sales and use tax records and certify that this Agreement meets the requirements set forth above an in Section 7056 (b) (1) of the Revenue and Taxation Code. 2. In performing its duties under this agreement, CONTRACTOR will provide a special software system.for CITY's use during the term of the contract that allows the CITY to review and print reports on the Board of Equalization Sellers Permit registration and allocation data for the CITY. This software has been developed by CONTRACTOR at substantial expense and is therefore considered by Contractor to be proprietary. 1� CONTRACTOR desires to protect its Proprietary Software. Accordingly, City agrees that neither it nor any of its employees, agents, independent contractors or other persons or organizations over which it has control,will at any time during or after the term of the Agreement, directly or indirectly use any of CONTRACTOR'S Proprietary Software for any purpose not associated with this agreement. Further, City agrees that neither it nor any of its employees, agents, independent contractors or other persons or organizations over which it has control, will disseminate or disclose ,any of CONTRACTOR'S Proprietary Software to any person or organization not connected with CONTRACTOR without the express written,consent of CONTRACTOR. The City also agrees that it will undertake all necessary and appropriate steps to maintain the proprietary - • nature of CONTRACTOR'S Proprietary Software and will not attempt to duplicate or re-engineer the software without proper reimbursement to the CONTRACTOR or without the CONTRACTOR's specific written consent. 3. CONTRACTOR understands that its allocation audit responsibilities outlined in this agreement will be secondary to the sales and use tax audits performed by the CITY's Revenue Division and that CITY will copy and keep CONTRACTOR informed of any claims for correction and reallocation of errors submitted by CITY to the State Board of Equalization in order to avoid duplication of effort and taxpayer contacts. JI't EXHIBIT " B" PERSONNEL Analysis and Staff Support: Lloyd de Llamas Denise Ovrom Sheri Peasley Howard Longballa Brice Russell Luci Romero Serlet Don Vestal Production Management and Software Training Linda Butterfield Audit Supervision: Matt Hinderliter Robin Sturdivant 15 T L'ALIFOR�IA AGENDA REPORT MEETING DATE: February 23, 2010 Council Item(X) CRA Item ( ) TITLE: Second Amendment to Purchase Order No. 2234, for Lynn Merrill, Consulting to Municipal Governments, for Technical Support for the City's Solid Waste and Recycling Programs. PRESENTED BY: Richard Shields, Director of Building& Safety/Public Works RECOMMENDATION: Approve Second Amendment Increasing Purchase Order No. 2234, for Lynn Merrill, Consulting to Municipal Governments in the amount of$2,025.00. BACKGROUND: In January 2009, the City issued, Purchase Order No. 2234, for Lynn Merrill, Consulting to Municipal Governments to provide technical support to the City for the City's solid waste and recycling programs. Specifically, the City requested support to review and update the existing solid waste franchise agreement in order to incorporate current solid waste and recycling elements into the agreement as well as integrate operational changes proposed by Burrtec, the City's current solid waste hauler. The original Purchase Order was issued for $4,860.00. On October, 13, 2009 City Council meeting, the agreement was amended to increase the total amount to $7,560.00 due to additional needs and analysis necessary to support the amendments to the solid waste franchise agreement and to prepare the refuse rate adjustments. This requested amendment is to adjust the total amount of the purchase order to $9,585.00, an increase of$2,025.00 in order to close out the purchase order. This action will complete this project. DISCUSSION: The total amount of this effort was $9,585.00. The additional costs of$2,025.00 were due to the necessity of preparing for and conducting the City Council workshop in November 2009, as well as finalizing the amendments to the Franchise Agreement and the refuse rate adjustments which were presented to the Council in December 2009, preparation and coordination of the Proposition 218 notifications and presentation of the refuse rate hearing in January 2010. As part of the Franchise Agreement, Section 7, requires the franchise hauler to reimburse the City for"its reasonable costs of granting this Franchise Agreement to the extent not recovered by COUNCIL AGENDA ITEM NO. N 1 the prepaid application fees; in an amount not to exceed Five Thousand Dollars ($5,000.00)." Staff has met with Burrtec regarding the fact that the costs for the franchise agreement amendment process was for the benefit of Burrtec and that such expenses should legitimately be reimbursed to the City by Burrtec. Burrtec has concurred, and has agreed to reimburse the City for the total expenses relating to the consultant's efforts above what is stated in Section 7, in the amount of$9,585.00. FISCAL IMPACT: The additional cost of this amendment is$2,025.00. As a result of Burrtec's willingness to reimburse the City for the cost of this effort, there is no financial impact to the City's General Fund. Burrtec shall reimburse the City in the amount of$9,585.00. Respectfully submitted, 1z Ri6ard Shields, Director of Building& Safety/Public Works Manager Approval: ",�W) Bets . Adams City Manager ATTACHMENTS: 1. Letter from Burrtec RECEIVED FEB 0 8 2010 IA/�ISTE INDUSTRIES, imc. "We'll Take Care Of It" DEPTOF BUILDING SAFETY February 3, 2010 Richard Shields Director of Public Works City of Grand Terrace 22795 Barton Road, Suite B Grand Terrace, CA 92313 Re: Integrated Waste Management Services Agreement Dear Richard: On behalf of Burrtec Waste Industries, I would like to thank you, city staff and the Grand Terrace City Council for their time, efforts and approval of the second amendment to our Solid Waste Franchise Agreement with the City. Burrtec appreciates the opportunity to provide the residents and businesses of Grand Terrace with the very best in Refuse and Recycling collection service as we stand ready to meet the challenges of waste diversion and-compliance with state mandates. Throughout this process, Burrtec recognizes the cost exposure to the City as it relates to staff time and consultants. Given today's economic climate and .the City's budgetary concerns, we all know that every dollar counts. In an effort to mitigate these costs, we offer to reimburse the City for the work done to complete our agreement. If this is acceptable please forward billing statements or invoices for the time spent on this project. We will send payment to the City posthaste. Once again we thank you and respectfully await your response. Sincerely Mic Arreguin Vice President Cc: Betsy Adams, City Manager 9390 Cherry Avenue , Fontana, ( :;ii%arnia ,;2335 -)09-429-4200 909-429- 1 90 3 a CALIFORNIA AGENDA REPORT MEETING DATE: February 23, 2010 Council Item (X) CRA Item ( ) y TITLE: An Ordinance of the City Council of the City of Grand Terrace, California, Amending Chapter 8.112 of the Grand Terrace Municipal Code Regulating the Sale and Discharge of Fireworks PRESENTED BY: Betsy M. Adams, City Manager RECOMMENDATION: Allow Residents of Grand Terrace to Vote on November 2, 2010 on the Sale and Discharge of Fireworks in the City BACKGROUND: At the April 14, 2009 Council Meeting, the City Council directed staff to meet with representatives of the Grand Terrace Little League and the Grand Terrace Soccer Club to discuss —_ the City's lighting and field use fee structure. Staff met with the presidents of both sports �✓' leagues on April 20, 2009. It was staff s understanding from the meeting that the sports leagues agreed the July 4`h fireworks sale for 2009 would be the last fireworks fundraising event in exchange for the City eliminating the $5 per child field use fee and providing a lighting credit. This information was provided to the City Council at the April 28; 2009 Council Meeting. On June 2, 2009, the presidents of sports leagues advised staff their respective Boards had rejected the City's offer to not sell fireworks after July 5, 2009 in return for field use and lighting use fee reductions. This information was provided to the City Council at the June 23, 2009 Council Meeting. Staff also recommended both sports leagues be given until October 1, 2009 to provide the City their written position on selling fireworks in 2010 and beyond in lieu of the City eliminating field use fees and lighting fees. Staff also recommended the discussion of banning fireworks in Grand Terrace be scheduled for the October 13, 2009 Council Meeting. The City Council accepted these staff recommendations. The October 1, 2009 deadline passed with neither the Grand Terrace Little League nor the Grand Terrace Soccer Club providing the written response requested by staff. At the Council Meeting on December 8, 2009, the City Attorney presented a staff report for the City Council to adopt an ordinance prohibiting the sale and discharge of fireworks in Grand Terrace. The City Council directed staff to bring the proposed ordinance back at the Council Meeting on January 12, 2010 along with the agreements with the Grand Terrace Little League and the Grand Terrace Soccer League. At the January 12, 2010 Council Meeting, staff requested discussion on the proposed fireworks ordinance be continued to the Council Meeting on January 26, 2010. The City Council approved continuing this item and requested a history of fireworks COUNCIL AGENDA ITEM NO.�(� 1 I ' I in Grand Terrace, including the recommendations of the Fireworks-Ad Hoc Committee, be' provided. At the Council Meeting on January 26, 2010, the fireworks information was provided.; Written agreements with the sports leagues were not provided as such agreements were not; reached. The City Council requested the Grand Terrace Little League and Grand Terrace Soccer; Club to provide financial information prior to,the February 23, 2010 Council Meeting where thei fireworks ordinance would be considered. While the sports leagues have representatives at the' January 26, 2010 Council Meeting, staff also contacted the sports leagues after the meeting toj advise them of the information requested by the-City Council. As of February 17, 2010, the day, the agenda packet is published for the February 23, 2010 Council Meeting, neither sports league had provided the requested information. DISCUSSION: The policy issue on whether Grand Terrace should or should not continue to allow the sale and! discharge of safe and sane fireworks has been under consideration by the City'Council for several months. Valid reasons both for and against fireworks have been voiced•by concerned; residents and stakeholders on both sides of this issue. The sale of safe and sane fireworks has' been an effective fundraiser for the Grand Terrace.Little League and the Grand Terrace Soccer, Club, yet these fireworks do increase the risk of fire and injury. The City Council has three! options to consider on fireworks as detailed below: 1. Allow the continued sale and discharge of safe and•sane fireworks in Grand Terrace. By taking no action on the proposed ordinance amending Chapter 8.112 of the Grand Terrace! Municipal Code the sale and discharge of safe and sane fireworks would continue. 2. Prohibit the sale and discharge of all fireworks, including safe and sane fireworks, in Grand Terrace. Approving the proposed ordinance. Chapter 8.112 of the Grand Terrace! Municipal Code would accomplish this. 3. Allow the residents to vote on whether or not the sale and discharge of all fireworks should! be prohibited in Grand Terrace. Prior to providing the staff recommendation on the above options, it is important to mention two' financial items which may have an impact on.the fireworks issue. The first item is the Fire Department may not be able to continue to provide the enhanced level of staffing.included in the i Fire Works Ad Hoc Committee's recommendations in 2006. San Bernardino County has; experienced a decline in revenues since then and may not be able to continue provide, at no cost to Grand Terrace, the two (2) engines with a total of eight (8) personnel the Committee; recommended for July 4th. In 2010, because July 41h falls on a Sunday, this increased level of fire protection service would also.be needed on July 3`d. The second item is that the City is also! experiencing a decline in revenues which impacts its ability to offer reduced fees,to the Grand Terrace Little League and the Grand Terrace Soccer Club if the sale and discharge of safe and! sane fireworks is prohibited. Of the options available for the City Council to consider on fireworks, option 3, which allows the residents'to vote on the matter is recommended by staff because it would definitively decide the; issue. With options 1 and 2, residents who do not support'-the- City Council's decision could! ,97i i • f choose to collect signatures to place the matter before the voters. Since some residents strongly support the sale and discharge of safe and sane fireworks in Grand Terrace while other residents strongly oppose all fireworks there is a possibility this could happen. The City Clerk has confirmed that 618 valid signatures would be needed for an item to qualify for the November 2, 2010 ballot. If the City Council approves either option 2 or 3, then it needs to be determined if the sale and discharge of safe and sane fireworks will be allowed for the July 4ch of 2010. If it is allowed, the sports leagues would have adequate time to prepare for the potential loss of this fundraiser, including the need to pay for full fees without a subsidy from the City. This would not be applicable to option 1. If the City Council approves option 3, staff will need to provide information on the process to place the sale and discharge of fireworks on the November 2, 2010 ballot. FISCAL IMPACT: If all fireworks are banned in Grand Terrace, the City will likely need to continue some level of enhanced law enforcement on and around July 4`h for two reasons. The first reason is neighboring cities sell safe and sane fireworks. The second reason is that fireworks not approved by the State of California's Office of the State Fire Marshal, commonly referred to as illegal fireworks, are sold in neighboring states and over the Internet. Any additional law enforcement costs for fireworks would be absorbed by the operating budget for law enforcement services. There would be no planned offsetting revenue for these services. There is some possibility of fine revenue from citations issued for the discharge of fireworks in Grand Terrace but any such revenue should not be relied upon from a budgetary perspective. The cost to include the fireworks ordinance on the November 2010 ballot should not exceed $1,900 and would be included as part of the operating budget for Fiscal Year 2010/2011. Respectfully submitted, Betsy . Adams City Manager Manager Approval: Betsy Nf Adams City Manager ATTACHMENTS: 3 i ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING CHAPTER 8.112 OF THE GRAND TERRACE MUNICIPAL CODE REGULATING THE SALE AND DISCHARGE OF FIREWORKS 1 THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES HEREBY ORDAIN AS FOLLOWS: Section 1., Existing Chapter 8.112 of the Grand Terrace Municipal Code is hereby repealed in its entirety and Chapter 8.11.2 of the Grand Terrace Municipal Code shall provide as follows: 8.112.010 Prohibition on sale of fireworks. It shall be unlawful for any person to ` offer for sale or sell at retail any fireworks of any kind within the City. 8.112.020 Prohibition on discharge. It shall be unlawful for any person to ignite, explode, project, or otherwise fire or use, any fireworks, or permit the ignition or projection thereof within the City of Grand Terrace: 8.112.030 Fireworks shall be defined. Fireworks shall be defined as set forth in Section 9.108 of the Uniform Fire Code and shall specifically include safe and sane fireworks, as defined by Section 12529 of the Health and Safety Code of the State of California. Section 2. Effective Date. This 'Ordinance shall be in full force and effect at 12:01 a.m., on the 3 0 day following its adoption. Section 3. posting. The City Clerk shall cause this Ordinance to be posted in three (3) public places within fifteen (15) days of its adoption, .as designated for such purposes by the City Council. Section 4. first read at the regular meeting of the City Council of the City of Grand Terrace held on the day of , 2010 and finally adopted and ordered posted at a regular meeting of said City Council on the day of 2010. Mayor of the City of Grand Terrace .fittest: Citv Clerk of the City of Grand Terrace 6 Ordinance No. AN ORDINANCE OF .THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA RESCINDING THE TRAFFIC SIGNAL IMPROVMENT AND ARTERIAL IMPROVEMENT FEE SCHEDULES (4.104) AND REPLACING IT WITH A NEW FEE STRUCTURE. WHEREAS, Grand Terrace continues to encourage new development of its vacant parcels as well as additions to and some replacement and remodeling of existing buildings; and WHEREAS, proposed projects continue to drive the demand for municipal services which in turn generate the need for expansion of the City's public facilities in order to provide these services; and WHEREAS, the City of Grand Terrace master facilities plan indicates that in order to accommodate future growth capital projects are needed including street and traffic signal improvements; and WHEREAS, the City of Grand Terrace in cooperation with San Bernardino Associated Governments (SANBAG) has conducted an extensive analysis in accordance with Chapter 5, Section 66000 of the California Government Code of potential new development, identified anticipated capital improvements needed to accommodate future growth, estimated the cost of these improvements, and identified a potential beneficiaries of these improvements;.and WHEREAS, the City of Grand Terrace updated its Arterial Improvement Fees by adopting Ordinance 242 on,January 13, 2008 to be eligible for-supplemental funding for arterial infrastructure that will become available under San Bernardino County's Measure I Program starting in 2010; and WHEREAS, on January 27, 2009, the City of Grand Terrace adopted Ordinance 244 to add an Operational Improvement Fee to the Arterial Improvement Fees due to additional infrastructure improvements identified; and WHEREAS, previously projected infrastructure projects, project costs, and funding sources may have changed and the City of Grand Terrace desires to re- evaluate previous studies made in accordance with Chapter 5, Section 66000 of the California Government Code; and WHEREAS, notice of public hearing has been provided per Government Code Section 6062a, oral and written presentation made and received, and the required public hearing held; and WHEREAS, pursuant to California Government Code Section 60623a, a general explanation of the recommendation to review the fees included in Chapter 4.104 COUNCIL AGENDA ITEM NO. 1 of the Grand Terrace Municipal Code and consider modifications to the schedule of fees and charges has been published as required; and WHEREAS, all requirements of California-Government Code Section 6600 et. seq. are hereby found to have been complied with; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES HEREBY ORDAINED AS FOLLOWS: Rescinding the tables of fees, Chapter 4.104.050 and 4.104.00, and replace with the following fees for a period not to exceed 24 months: Traffic Signal Improvement Fees Single-Family Homes and Multi-Family Homes (per Unit) 1. Detached Dwelling Units $ 373.16. 2. Attached Dwelling Units $ 228.51 Retail 1. Retail (TSF-GLA) $ 840.00 (per thousand square feet of gross.leasable area) Industrial/warehouse 1. Industrial/warehouse (TSF-GFA) $274.40 (per thousand square feet of gross floor area) Office 1. Office (TSF-GLA) $431.20 (per thousand square feet of gross leasable area) Arterial Improvement Fee Single-Family Homes and Multi-Family Homes (per Unit) 1. Detached Dwelling Units $4242.58 2. Attached Dwelling Units $2598.02 Retail 1. Retail (TSF-GLA) $9524.14 (per thousand square feet of gross leasable area) t Industrial/warehouse 1. Industrial/warehouse (TSF-GFA) $3088.52 (per thousand square feet of gross floor area) Office 1. Office (TSF-GLA) $4884 17 00 (per thousand square feet of gross leasable area) 3 ATTEST: i City Clerk of the City of Mayor of the City of Grand Terrace Grand Terrace and of the and of the City Council thereof City Council thereof I, BRENDA MESA, City Clerk of the City of Grand Terrace, California, 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, 2010 by the following vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk Brenda Mesa Approved as to form: City Attorney John Harper CALIFORNIA AGENDA, REPORT MEETING DATE: February 23, 2010 Council Item(X) CRA Item ( ) - , TITLE: State Department of Parks and Recreation Grant Opportunity for a New Park PRESENTED BY: Joyce Powers, Community and Economic Development Director PREPARED BY: Katherine Chamberlain, CED Management Analyst RECOMMENDATION: Adopt the Resolution in support of the grant proposal. BACKGROUND: In 2006 the voters of California approved Proposition 84, referred to as the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act. Through this -_ bond measure the Statewide Park Program has been allocated $368 million in grant monies. The State Office of Grants and Local Services (OGLS) is now accepting applications for the Statewide Park Development and Community Revitalization Program of 2008 (Statewide Park Program). Applications are due March 1, 2010.' The Statewide Park Program will award grants, on a competitive basis, for the creation of new parks and new recreation opportunities in proximity to critically underserved communities. According to the Department of Parks and Recreation (DPR) an underserved community is defined as a community with less than 3 acres of usable park space per 1,000 residents, and the City of Grand Terrace meets this criteria. The maximum grant request is $5 million, to be used for site acquisition, development costs and construction costs. Project applications must address six eligibility requirements' in order to be considered for funding. The review rating system is primarily based on the applicant's success in addressing the criteria, as follows: • Critical lack of park space or significant poverty (highest achievable points) • Type of project(new or expansion of park) • Safe public use • Sustainable techniques • Funding to complete the project • Fees and hours of operation COUNCIL AGENDA ITEM NO. 1 I Along with these basic requirements, there are Project selection criteria with which the Office of Grants and Local Services (OGLS) will evaluate, score and rank the application package. Grant award decisions will be announced approximately six months after the application deadline. Staff has prepared a draft grant application package to submit to OGLS, which is attached for your consideration. DISCUSSION: After a citywide search for an- appropriate site, staff is recommending that a new park be constructed on approximately three acres of land located in the northwest portion of the City identified as'21945 Grand Terrace Road (See Attachment A). Included in the grant application package are "willing seller" letters signed by the owners of the subject parcels. Acquisition and land clearing costs would be approximately$870,000. i Staff worked extensively with the residents of the City, particularly the residents of the subject neighborhood, on the amenities they would like to see incorporated into the new park. Eight community meetings were held at various times of the day to reach as many residents as possible. During the meetings, staff presented the park concept and requested input. 1 The new park is intended to be usable open space accessible to all residents to meet their recreational, cultural, social, and educational needs. Each section of the application is awarded',a maximum amount of points, and staff has thoughtfully assembled the application package to include items that will maximize the application "score" with OGLS. The project selection criteria and values are as follows: Selection Criteria Possible Points Staff s estimate of points - earned Critical lack of park space 18 18 i Significant Poverty 18 * 18, Type of Project 12 12 Community Based Planning 18 18 Sustainable Techniques 11 11 Project Funding 0 0 Fees and Hours of Operation 5 5 Youth Outdoor Learning 3 3 i Employment or Volunteer Opportunities Community Challenges and 15 15 Project Benefits 1 *This rating is provided by the State based on area incomes. 2 The park design will have a water efficiency theme running throughout, and applicants were encouraged to include techniques for sustainability. The sustainable techniques planned for the new park include: • Water efficient irrigation systems and other low water fixtures • Use of pervious surfaces and on-site water recycling • Use of at least 10% recycled materials for construction • Native and drought tolerant landscaping • Use of shade trees to aid in cooling of the restroom structure • Use of bio-swales to filter runoff water There will also be a large emphasis on education, culture and art at the proposed park. Some of the planned activities for the new park are as follows: • Native Garden Education Activity • Annual "Chalk Art in the Park" Day • Park Naming Contest • Logo or Design Contest The grant application package is being submitted without the design and construction cost analysis completed. Staff worked with the Program's project manager, who agreed to provide additional time to complete the cost estimate, which will likely be about $350,000-$450,000. The application package requires a resolution from the City Council in support of the application and staff recommends approval. Applicants will be notified of grant approvals in approximately six months. FISCAL IMPACT: There is a fiscal impact of approximately $6,000 associated with submitting the grant application, which can be funded by the Redevelopment Agency. The grant would fund all project design, construction and equipment, and no local match is required. Maintenance of the park would be a City expense and is estimated at$50,000 per year. Respectfully submitted, Joyce Powers Community and Economic Development Director Manager Approval: Betsy, . Ad s City`Manager ATTACHMENTS: A. Site Map B. Resolution C. Application Package 3 `• _Y�';� d J .s' y�'.i►�.• .� •, � ant '� �'�x�L�!. r, .. ,�;r: � � �•�� "' - I'.�'gr• 7� 'f .fir f I i •Y�rI -%�. •� -•� '��'� .�: '�: {: -� i t err - r, � Attachment B: Resolution RESOLUTION NO: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, APPROVING THE APPLICATION FOR STATEWIDE PARK PROGRAM GRANT FUNDS' WHEREAS, the State Department of Parks and Recreation has been delegated the responsibility by the Legislature of the State of California for the administration of the Statewide Park Program, setting up necessary procedures governing the Application; and WHERAS, said procedures established by the State Department of Parks and Recreation require the applicant to- certify by resolution the approval of application before submission of said application to the State; and WHEREAS, the applicant will enter into a contract with the State of California to complete the grant scope project; NOW, THEREFORE BE IT RESOLVED that the City Council hereby: Approves the filing of an application for the Westside Park, and 1 . Certifies that said applicant has of will have available, prior to commencement of any work on the project included in this application, the sufficient funds to complete the project; and 2. Certifies that the applicant has or will have sufficient funds to operate and maintain the project, and 3. Certifies that the applicant has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Grant Administration Guide; and 4. Delegates the authority to the City Manager to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the grant scope; and S. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines. Approved and adopted the 23'd day of February, 2010. I, the undersigned, hereby certify that the foregoing Resolution Number was duly adopted by the City Council following a roll call,vote: Ayes: Noes: Absent: Brenda Mesa, City Clerk Betsy M. Adams, City Manager Attachment C: Application Package t 9 TABLE OF CONTENTS Application Form Nonprofit Requirements Authorizing Resolution r- Grant Scope/Cost Estimate Funding Sources California Environmental Quality Act (CEQA) Compliance Land Tenure Requirement Assessor Parcel Map and Willing Seller Letters Sub-Leases or Agreements Concept Level Site Plan Project Location Map Photos of the Project site Project Selection Criteria 1<, State of California-The Resources Agency DEPARTMENT OF PARKS AND RECREATION Statewide Park Development and Community Revitalization Program of 2008 Project Application Form PROJECT NAME Requested GRANT Amount $ West Side Park Other Funding Sources $ PROJECT PHYSICAL ADDRESS(including zip code) Estimated TOTAL PROJECT COST $ 21945 Grand Terrace Road Nearest Cross Street County of Project Location APN #0275-231-17 _ APN #0275-231-48 THROUGH 0275431-66 Barton Road San Bernardino GRANT APPLICANT(entity applying for the grant) GRANT APPLICANT'S Mailing Address City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 AUTHORIZED REPRESENTATIVE AS SHOWN IN RESOLUTION OR CERTIFICATION LETTER Betsy M. Adams, City Manager badams@citvofgrandterrace.org (909) 430-2245 Name (typed or printed)and Title Email address Phone DIRECTOR/PRESIDENT/CEO Joyce Powers, Director, CEDD iPowers�cityofgrandterrace.org (909) 430-2225 y Name (typed or printed)and Title Email address Phone DAY-TO-DAY CONTACT for ADMINISTRATION of the GRANT(if different from AUTHORIZED REPRESENTATIVE) Katie Chamberlain Man. Analyst kchamberlain@cityofgrandterrace.org (909) 430-2247 Name (typed or printed)and Title Email address Phone For ACQUISITION: For DEVELOPMENT: Total land acquired will be 3.07 acres Total acreage of the PARK will be 3.07 3.07 Acres to be acquired in fee simple by Applicant (include land to be acquired if applicable) Acres to be acquired in other than fee simple Acres owned in fee simple by Applicant (attach explanation) Acres available under a year lease or easement. GRANT SCOPE: I represent and warrant that this APPLICATION PACKET describes the intended use of the requested GRANT to complete the RECREATION FEATURES and MAJOR SUPPORT AMENITIES listed in the attached GRANT SCOPE/Cost Estimate Form. I declare under penalty of perjury, under the laws of the State of California, that the information contained in this APPLICATION PACKET, including required attachments, is accurate. Signature AUTHORIZED REPRESENTATIVE as shown in Resolution Date Print Name Betsy M. Adams Title City Manager 11 Nonprofit Requirements The City of Grand Terrace is a nonprofit organization. The City of Grand Terrace is a government agency. 12 RESOLUTION NO: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, APPROVING THE APPLICATION FOR STATEWIDE PARK PROGRAM GRANT FUNDS WHEREAS, the State Department of Parks and Recreation has been delegated the r responsibility by the Legislature of the State of California for the administration of the Statewide Park Program, setting up necessary procedures governing the Application; and WHERAS, said procedures established by the State Department of Parks and Recreation require the applicant to certify by resolution the approval of application before submission of said application to the State; and WHEREAS, the applicant will enter into a contract with the State of California to complete the grant scope project; NOW, THEREFORE BE IT RESOLVED that the City Council hereby: Approves the filing of an application for the Westside Park, and 1. Certifies that said applicant has of will have available, prior to commencement of any work on the project included in this application, the sufficient funds to complete the project; and 2. Certifies that the applicant has ,or will have sufficient funds to operate and maintain the project, and 3. Certifies that the applicant has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Grant Administration Guide; and 4. Delegates the authority to the City Manager to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the giant scope; and 1� { I I 1 5. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines. i Approved and adopted the 23rd day of February, 2010. I, the undersigned, hereby certify that the foregoing- Resolution Number was duly adopted by the City Council following a roll call vote: Ayes: ` Noes: j Absent: I I Brenda Mesa, City Clerk Betsy M. Adams, City Manager I i F i I i I I Grant Scope/Cost Estimate Form GRANT SCOPE ITEMS: ESTIMATED COST Property Acquisition and land clearing $ 870,000 Total Estimated Cost for the Recreation Features $ and Major Sup port pport Amenities Total Estimated Pre-Construction Cost $ Total Project Cost $ Requested Grant Amount $ The applicant understand that this form will be used to establish the expected grant deliverables, and that all the recreation features and major support amenities listed on this form must be completed and open to the public before final grant payment is processed as specified in the "Grant Process— End of Grant Performance Period" section found in the Grant Administrative Guide. The applicant also understands that no more than 25% of the grant amount may be spent on pre-construction costs. See eligible costs charts'starting on page 55 before creating a cost estimate. Applicant's Authorized Representative Signature Date 15 I 1 Funding Sources Form i Funding Source Date Amount COMMITTED Statewide Park Program GRANT Request TBD $ TBD ! $ i 1 $ i $ $ $ $ Grand Total All Funding Sources $ TBD .(Estimated TOTAL PROJECT COST) I The APPLICANT understands that the PROJECT cannot be funded unless the requested GRANT equals the estimated cost-needed to complete the PROJECT,.or, the requested ' GRANT plus the total amount of additional COMMITTED FUNDS equals the estimated cost of the PROJECT. The PROJECT must be completed and open to the public before final GRANT payment is processed. - i { APPLICANT'S AUTHORIZED REPRESENTATIVE Signature Date i Statewide Park Development and 17 Funding Sources Form Community Revitalization i i City of Grand Terrace Draft Environmental Initial Study 1. Project title: Westside Park 2. Lead agency name and address: City of Grand Terrace 22795 Barton Road Grand Terrace,California 92313 3. Contact person and phone number: Joyce Powers, Community and Economic Development Director(909)430-2225 4. Project location: 21945 Grand Terrace Road Grand Terrace,California 92313 5. Project sponsor's name and address: City of Grand Terrace 22795 Barton Road Grand Terrace, California 92313 6. General Plan designation: Medium Density Residential 7. Zoning: R2—Low Medium Density Residential 8. Description of project: The project description will be refined upon award of contract. The City of Grand Terrace proposes to construct an approximately,3 acre active park on V1 two adjacent parcels. One parcel is 2.5 acres vacant land, and the second parcel is 0.5 acre containing a single family residence. The single family residence will be demolished and the existing sewer and utilities would be utilized to serve the park and support utilities, such as a restroom structure, a storage structure for maintenance materials and pedestrian lighting. The park will be developed using pervious surfaces for the,parking lot aiea. Pervious and recycled materials will be utilized as much as possible fot all sidewalks; paths, playground areas, and sports courts. A walkin&area will be included that will be Landscaped with native,plant species which will require little to no wateri-The park will b" designed and graded to capture runoff from on-site and off-site sources in a bio-swale-,or other filtration system. The off-site improvements will be in accordance'with'the City engineers' specifications and.will include curb, gutter, sidewalk and street light-installation. Decorative fencing will be installed along the perimeter of the park and the parkwill be closed daily, at'dusk and reopened.at 7:00 a.m. the following day. 9. Surrounding land uses and setting: The project site has residential uses to the north, south, east and west. An approximately 66 space mobile home park is to the south of the project site, while single family residences are developed to the north, east and west. There are two parcels to the southeast that are designated general commercial. One of the commercially designated parcels is developed with a commercial use and the other is vacant. 17 - I Environmental Checklist/Initial Study ! Proposed Westside Park 10. Other public agencies whose approval is required (e.g., permits, financing approval, or participation agreement.) i Regional Water Quality Control Board, Santa Ana Region ' i ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially. Significant Impact" as indicated by the checklist on the following pages. ❑ Aesthetics ❑ Agriculture Resources ❑Air Quality ❑ Biological Resources ❑ Cultural Resources ❑ Geology/Soils ❑ Hazards & Hazardous ❑ Hydrology/Water Quality ❑ Land Use/Planning Materials ❑ Mineral Resources ❑ Noise ❑ Population/Housing ! ❑ Public Services ❑ Recreation ❑Trans ortation/Traffic ❑ Utilities/Service Systems ❑ Mandatory Findings of Significance DETERMINATION: (To be completed by the Lead Agency) On the basis of this initial evaluation: ❑ I find that the project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. ❑ I find that although the proposed ,project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. ❑ I J�id that the-p4osed project MAY have a significant effect on the environment, and an ENVIRONMENTAWMPACT REPORT is required. ❑ I, find`'that the propoq,ed project MAY have a."potentially significant impact" or "potentially, significant]unless mitigated" impact on the environment, but at least one, effect 1) haa:been adequately analyzed in an earlier document pursuant to applicable legal standards;:and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required,but it must analyze only the effects that remain to be addressed. ❑ I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated, pursuant to that earlier EIR 'or NEGATIVE, DECLARATION, including revisions or mitigation measures that are imposed upon the. proposed project, nothing further is required. 4 i 1 F6� Environmental Checklist/Initial Study Proposed Westside Park Joyce Powers Date Community and Economic Development Director l EVALUATION OF ENVIRONMENTAL IMPACTS: 1. A brief explanation is-required for all answers except "No hnpact" answers that are adequately supported by the information'sources a lead agency cites in the parentheses following each question. A "No Impact" answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e.g., the project falls outside a. fault rupture zone). A "No Impact" answer should be explained where it is based, on project-specific factors as well as general standards (e.g., the project will not expose sensitive receptors to pollutants, based on a project-specific screening analysis). 2. All answers must take account of the'whole action involved, including off-site as well as' on-site, cumulative as well as project-levek in4irect as well as direct, and construction as well as operational impacts. 3. Once the lead agency has.determined that)a particular physicalimpact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation,-or less than siiWiilscant. "Potentially Significant Impact" is appropriate if there is substantial evidence that an effect may be significant. If there are one or more "Potentially Significant Impact" entries when the determination is made, an EIR is required. 4. "Negative Declaration: Less Than Significant- With Mitigation Incorporated" applies where the incorporation of mitigation measures has reduced an effect from "Potentially Significant Impact." to a "Less Than Significant Impact". The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from "Earlier Analyses," as described in (5) below, may be cross-referenced). 5. Earlier analyses may be used where, pursuant to the tiering, program EIR, or'other CEQA process, an effect has been adequately.analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). In this case, a brief discussion should identify the following: a. Earlier Analysis Used. Identify the state where they are available for review. b. Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. 19 Environmental Checklist/Initial Study Proposed Westside Park c. Mitigation Measures. For effects that are "Less than Significant with Mitigation Measures Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site-specific conditions for the project. i 6. Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g., general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, 'include a reference to the page or pages where the statement is substantiated. 7. Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted should be cited•in the discussion. 8. This is only a suggested form; and lead agencies are free to use different formats; however, lead agencies should normally address the questions from this checklist that are relevant to a project's environmental effects in whatever format is selected. 9. The explanation of each issue should identify: a. the significance criteria or threshold, if any, used to evaluate each question; and b. the mitigation measure identified,,if any, to reduce the impact to less than significance! 4 I 2 I A I I I • I • I • I - i 2C Environmental Checklist/Initial Study Proposed Westside Park Potentially Less Than Less than No 'Significant Significant Significant Impact Impact With Impact Mitigation Incorporated I. AESTHETICS—Would the project: a. Have a substantial adverse effect on a ❑ ❑ ❑ ❑ scenic vista? b. Substantially damage scenic resources, ❑ ❑ ❑ ❑ including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? .. fr A c. Substantially degrade the existing visual ❑ :;� ❑ ❑ ❑ character or quality of the site and its surroundings? d. Create a new source of substantial light ❑ ❑ ❑ or glare which would adversely affect day ,h- or nighttime views in the area? H. AGRICULTURE RESOURCES: In determining whether_iinpacts to agricultural resources are significant environmental effects, lead agencies may refeg to the California Agricultural Land Evaluation and Site Assessment Model (1997), prepared by the California Department of conservation as an optional model used in assessing impacts on agriculture and farmland. Would the project: a. Convert Prime Farmland, Unique ❑ ❑ ❑ ❑ Farmland, or Farmland of Statewide Importance (Farmland), as shown: on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non- agricultural use? b. Conflict with existing zoning for ❑ ❑ ❑ ❑ agricultural use, or a Williamson Act contract? c. Involve other changes to the existin ❑ ❑ ❑ ❑ 21 environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use? III. AIR QUALITY—Where available, the significance criteria established by the applicable air; quality management or air pollution control district may be relied upon to make the following' determinations. Would the project: - a. Conflict with or obstruct implementation I ❑ ❑ ❑ ❑ of the applicable air quality plan? b. Violate any air quality standard or ❑ ❑ ❑ ❑ contribute substantially to an existing or ro'ected air quality violation? c. Result in cumulatively considerable net ❑ ❑ ❑ ❑ increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozoneprecursors)? d. Expose sensitive receptors to substantial ❑ ❑ ❑ ❑ pollutant concentrations? e. Create objectionable odors affecting a ❑ ❑ ❑ ❑ substantial number of people? IV.BIOLOGICAL RESOURCES—Would the project: a. Have a substantial adverse effect, either ❑ ❑ ❑ ❑ directly os,through habitat modifications, on any species identified as-a candidate, sensitive, or special status species in local or regional plans; policies, regulations or by the Cal Dept. of Fish and Game or U.S. Fish and Wildlife Service?;.;' b. Have a substantial adverse effect on any ❑ ❑ ❑ ❑ riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the Cal Dept. of Fish and Game or U. S. Fish and Wildlife Service? c. Have a substantial adverse effect on ❑ ❑ ❑ ❑ federally protected wetlands as defined b 22 Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d. Interfere substantially with the ❑ ❑_ ❑ ❑ movement of any native resident or migratory fish or wildlife species or with established native resident or migratory (+J wildlife corridors, or impede the use of native wildlife nursery sites? e. Conflict with any local policies or ❑ ❑ ❑ ❑ ordinances protecting biological resources, such as a tree preservation policy or ordinance? f. Conflict with the provisions of an ❑ ❑ ❑ ❑ adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservationplan? V. CULTURAL RESOURCES—Would the project:• a. Cause a substantial adverse change in ❑ ❑ ❑ ❑ the significance of a historical resource as defined in § 15064.5? b. Cause a substantial adverse change in ❑ ❑ ❑ ❑ the significance of an archaeological resource pursuant to § 15064.5? c. Directly or indirectly destroy a unique ❑ ❑ ❑ ❑ paleontological resource or site or unique geologic feature? d. Disturb any human remains, including ❑ ❑ ❑ ❑ those interred outside of formal cemeteries? VI. GEOLOGY AND SOILS—Would the project: a. Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: 23 i. Rupture of a known earthquake fault, as ❑ ❑ ❑ ❑ delineated on the most recent Alquist- Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a ' known fault? Refer to Division of Mines and Geology Special Publication 42. ii. Strong seismic ground shaking? ❑ ❑ ' ❑ ❑ iii. Seismic-related ground 'failure, ❑ ❑ ❑ ❑ , including liquefaction? iv. Landslides? D ❑ ❑ ❑ b. Result in substantial soil erosion or the ❑ ❑ ❑ ❑ loss of topsoil? c. Be located on a geologic unit or soil that ❑ ❑ ❑ ❑ is unstable, or that would become unstable. as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? ' d. Be located on expansive soil, as defined ❑ ❑ ❑ ❑ in Table 1 S-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? e. Have soils incapable of adequately ❑ ❑ ❑ ❑ 1 supporting the use of septic tanks or ' alternative waste water disposal systems where sewers are not available for the disposal of waste water? VII. HAZARDS AND HAZARDOUS MATERIALS—Would the project: a. Create a significant hazard to the public ❑ ❑ ❑ ❑ or the environment through the routine transport, use, or disposal of hazardous materials? b. Create a significant hazard to the public ❑ ❑ ❑ ❑ or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous, materials into the environment? 24 c. Emit hazardous emissions or handle ❑ ❑ ❑ ❑ hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? d. Be located on a site which is included on ❑ ❑ ❑ ❑ a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? I. e. For a project located within an airport ❑ ❑ ❑ ❑ land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f. For a project within the vicinity of a ❑ ❑ ❑ ❑ private airstrip, would the project result in a safety hazard for people residing or working in the project area? g. Impair implementation of a physically ❑ ❑ ❑ ❑ interfere with an adopted emergency response plan or emergency evacuation plan? h. Expose people or strgctures to a ❑ ❑ ❑ ❑ significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences, are intermixed with wildlands? hal VUL HYDROLOGY AND WATER QUALITY—Would the project: a. Violate any water quality standards or I ❑ ❑ ❑ ❑ waste discharge requirements? b. Substantially deplete groundwater ❑ ❑ ❑ ❑ supplies or interfere substantially -with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre- existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have beengranted)? c. Substantially alter the existing drainage ❑ ❑ ❑ ❑ pattern of the site or area, including i through the alteration of the course of a stream or river, in a manner which would result in a substantial erosion or siltation on-or off-site? i d. Substantially alter the existing drainage ❑ ❑ ❑ ❑ j pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off-site? f e. Create or contribute runoff water which ❑- ❑ ❑ ❑ would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff. i f. Otherwise substantially degrade water ❑ ❑ ❑ ❑ quality? g. Place housing within a 100-year flood ❑ 0 ❑ ❑ ,f hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate i Map -or other flood hazard delineation map? h. Place within 100-year flood hazard area ❑ ❑ ❑ ❑ structures which would impede or redirect flood flows? i. Expose people or structures- to a ❑ ❑ ❑ ❑ significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? j. Inundation b seiche, tsunami, or ❑. ❑ ❑ ❑ i 2F mudflow? IX.LAND USE AND PLANNING,:—Would the project: a. Physically divide an established ❑ ❑ ❑ ❑ community? b. Conflict with any applicable land use ❑ ❑ ❑ ❑ plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c. Conflict with any applicable habitat ❑ ❑ ❑ ❑ conservation plan or natural community conservationplan? X. MINERAL RESOURCES—Would the project: . a. Result in the loss of availability of'a ❑ ❑ ❑ ❑ known mineral resource that would be of value to the region and the residents of the state? b. Result in the loss of availability of a ❑ ❑ ❑ ❑ locally important mineral resource recovery site delineated on a local general plan, specific plan or other land useplan? XI.NOISE—Would the project result in: a. Exposure of persons to or generation of ❑ ❑ ❑ ❑ noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? b. Exposure of persons to or,generation of ❑ ❑ ❑ ❑ excessive groundbourne vibration or oundbourne noise levels? c. A substantial permanent increase in ❑ ❑ ❑ ❑ 27 i I ambient noise levels in the project vicinity F above levels existing without the ro'ect? d. A substantial temporary or periodic ❑ ❑ ❑ ❑ increase in ambient noise levels in the project vicinity above levels existing without theproject? e. For a project located within an airport ❑ ❑ ❑ ❑ land use plan'or, where such a plan has not been adopted, within two miles of a public 1 airport or public use airport, would the project expose people residing or working in the .project area to excessive noise levels? f. For a project within the vicinity of. a ❑ ❑ ❑ ❑ private airstrip, would the project expose people residing or working in the project { area to excessive noise levels? XII.POPULATION AND HOUSING—Would the project: a. Include substantial population growth in ❑ ❑ ' ❑ Cl an area, either directly (for example, by proposing new homes•and businesses) or indirectly (for example,. through extension of roads or other infrastructure)?- b. Displace substantial numbers of existing ❑ ❑ ❑ ❑ housing,necessitating th`:.construction of replacement housing elsewhere? c. Displace substantial number' of people, ❑ ❑ ❑ ❑ necessitating the construction of replacement housin elsewhere? XM.PUBLIC SERVICES a. Would the project result in substantial adverse physical impacts associated-with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: i. Fireprotection? ❑ D ❑ ❑ ii. Policeprotection? ❑ ❑ ❑ ❑ iii. Schools? ❑ ❑ ❑ ❑ F , j 26 iv. Parks? ❑ ❑ ❑ ❑ v. Other public facilities? U . ❑ ❑ ❑ XIV. RECREATION a. Would the project increase the use of ❑ ❑ ❑ ❑ existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? , b. Does the project include recreational ❑ ❑ ❑ ❑ facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? XV.TRANSPORATION/TRAFFIC—Would the project: a. Cause an increase in traffic which is ❑ ❑, ❑ ❑ substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections)? b. Exceed, either individually or ❑ ❑ ❑ ❑ cumulatively, a level of service standard established by the county congestion management agency for the designated roads or highways? c. Result in a change in air traffic patterns, ❑ ❑ ❑ ❑ including either an increase in traffic levels or a change in location that results in substantial safety-risks? d. Substantially increase hazards due to a ❑ ❑ ❑ ❑ design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? e. Result in inadequate,emergency access?7 ❑ 0 ❑ ❑ f. Result in inadequate parking capacity? ❑ ❑ ❑ ❑ 29 I i g. Conflict with adopted policies, plans, or ❑ ❑ ❑ ❑ programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)? XVI. UTILITIES AND SERVICE SYSTEMS—Would the project: a. Exceed wastewater treatment ❑ ❑ ❑ ❑ requirements of the applicable Regional Water_Quality Board? 4 b. Require or result in the construction of ❑ ❑ ❑ ❑ new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? c: Require or result in the construction of ❑ ❑ ❑ ❑ new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? d. Have sufficient water supplies available ❑ ❑ ❑ ❑ to serve the project from existing ` entitlements and resources, or are new or expanded entitlements needed? i e. Result in a determination by the ❑ ❑ ❑ ❑ wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? f. Be served by a landfill with sufficient ❑ ❑ ❑ ❑ permitted capacity to accommodate the ro'ect's solid waste disposal needs? g. Comply with federal, state, and local ❑ ❑ ❑ ❑ statutes and regulations related to solid waste? XVII. MANDATORY FINDINGS OF SIGNIFICANCE 30 a. Does the project have a potential to ❑ ❑ ❑ ❑ degrade the quality .of the environment, substantially.reduce the habitat of a fish or wildlife species,' cause fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant of animal or eliminate important examples of the major periods of 1 California history or prehistory? b. Does the project have impacts that are ❑ ❑ ❑ ❑ individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the, incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? c. Does the project have environmental ❑ ❑ ❑ ❑ effects which will cause substantial r adverse effects on human beings, either directl 'or indirectly? 31 i CEQA Timeline for Compliance February 9, 2010.— Request for Proposals issued to Environmental consultants. i February 23, 2010— Responses received from consultants. March 1, 2010—Application submitted with incomplete CEQA status. August 30, 2010—Grant Award (or Denial) letter to be received. September 28, 2010—The City enters into a contract with an Environmental Consultant. February, 1, 2011 — Draft Initial Study/Mitigated Negative Declaration circulated. April 30, 2011 — Initial study/Mitigated Negative Declaration adopted. May 15, 2011 —City files the Notice of Determination. i Estimated Cost I 1 I The City estimates the cost for the consultant to be $15,000.- $20,000. Possible Obstacles The City does not anticipate any obstacles; however, some possible challenges would be the completion of the environmental studies (that is, the Water Quality Management I Plan, Greenhouse Gas Analysis, Noise Study, etc.)The only other possible obstacle would be a legal challenge. { i I 32 Land Tenure Requirement The City intends to acquire the subject project site by simple fee; therefore a Land Tenure Agreement in not applicable. 33 0 I I T HoaublHoof • I Q February 2, 2010 Honorable Mayor and City Council a City of Grand Terrace _ 22795 Barton Road N { Grand Terrace, CA 92313 a Subject: Sale of Property on Grand Terrace Road, APN 0275-231-48 through 66 I � Dear Mayor and City Council; 0 This is to notify you that the property listed above owned by Douglas and Monigue CO 90 Jacobsen Family Holdings I. LLC is available for sale for$600,000. 1 understand that the City has an interest in the property for a park site pending a state park grant for , property acquisition and park construction. I � I believe an active park is a great use of this site and is needed in this neighborhood. The use for which I originally purchased this property is not feasible now, and I am very i willing to sell the property to the City for this project. I have attached a map of the x property to confirm its location. ; 0 � N C CO CO Sincerely, `p ; o cfl faer en 8 cr Mer o Is • io I NA A 34 Ph. Resub, of Grand Terrace Tract City of Grand Terrace 0275— 23 OF eU HLUnEY IAIA'IUA UNL1 R.S. 1/33 1600Rate Area T I ' ' \ � 1'•10U' I V• ` Q f ]1 11 „Par. 1 e0) AI r 2 s Par. \ ra u 1 are I' Par. 1 49 40 43 r 'm \ 39 °ez' 2 15o ee zlI , `\ �( 1 51 fa 1 I 17 ,\ q - I 65 rra 17 5� 4 66 7 54 11 22- \ 11 1 15 -17 S 53 a e 55 1.1 AC. 12 Yap :51Far-34 10 -7 I 6.64 6l6,eS 14 13 1P 56 1 AC. N r, do N R C �� 61'6a 11 59 I \\ .y 1.41 AC. U2 I.ii AC. 31 Sre. n :rr 47 ee +ua ar \\ I`_ ti9 !are 3.13 AC. `oJ` s 2.ea A 3 I (1.11 AC.r w .� = � - eLK. as F a4 1� 3.11 AC. - I 12B � • ! / 1 1.11 AC. 1 e,•-' 1� I 1 ' 204 (1 41 AC.) .L S�� ' 1.11 AC. 195 AC .a (7.5 AC.) 1.1 AC. o I 1 — —Nmfo* ks- — - - -"— — — — \ 1161 1161 FEYiSED iiacl Na 14816, Y 8 148/30 (1-1 61 32 D6/I!!DA F e 03,5!09 f Parcel Yap No 4522, P W 43j59 60 1Z 14 Assessors Nap 00221c9 , Parcel W a p No 3199, P W 29i82 Book 0275 Page 23 December 2003 San Bernardino County W Ln Exhl*1 -Existing use Map N � VAe.^HT LOT a� _ r CO 13 36 The Peters "willing seller" letter has not yet been received. 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Critical Lack of Park Space The ratio of usable park space per 1,000 residents within proximity of the project site, according to the "California State Parks Community Fact Finder" (CSPCFF) is zero. In proximity of the project site, 2,215 residents reside, according to the CSPCFF. The c " closest active park space is approximately two miles away on the east side of Interstate 215. The Interstate acts as a physical line of separation in the City of Grand Terrace. There are two existing parks on the east side of the Interstate and there are no parks on the northwest side. 2. Significant Poverty A. The median household income within,proximity of the project site, according to the CSPCFF, is $37,068. The City of Grand Terrace has two census blocks that qualify for l Community Development Block Grant (CDBG) funding, both on the west side of Interstate 215. The project site would serve both of the CDBG qualifying.blocks and is located within one of them. B. The number of families living below poverty within proximity of the project site, according to the CSPCFF, report is 322. The project site is within one-half mile of two large mobile home communities. The Grand Terrace Mobile Home Park is adjacent to the park site and consists of approximately 66 spaces. The Grand Royal Mobile Estates park is significantly larger with approximately 182 spaces. The residents of these communities would be able to walk to the project site. 3. Type of Project A. Creating a New Park 43 The selected park site includes 20 separate,parcels. One parcel (APN 0275-231-17) contains a single family residence utilized as a rental property by the current owner. The property owner has agreed to sell the property to the City of Grand Terrace. The remaining 19 parcels are portions of a.recorded, but,undeveloped tract map. The parcels are currently vacant. The Developer has agreed to sell the parcels to the City of Grand Terrace. The project property is not adjacent to any existing park. This new proposed park site would be the first pack established'in the northwest portion of the City. This active park will create open space with the incorporation of exercise stations, a walking path, and sport courts. The park will provide recreational benefits to the residents and meet their cultural, social, educational and environmental.needs while also revitalizing the neighborhood. 4. Community Based Planning A. Meeting Meeting Type, Venue, Time Day of DateNear # Address am-pm Week 1 Grand Terrace Lions Club 6:30 a.m. = Wed. 2/3/10 Community center, 22164 8:30 a.m. Barton Rd. 2 Grand Terrace Chamber of Commerce.Meeting 11:30 a.m. Mon. 2/8/10 i 3 Grand Terrace Child Care 4-6 p.m. `Wed. 2/10/10 i Center, 22400 Barton rd. , ` i 4 Proposed Park Site 1:30-3:30 Thurs. 2/11/10 Grand Terrace Rd. p.m. 5 Grand Terrace City Hall 5-6 p.m.' Thurs. 2/11/10 22795 Barton Rd 6 Grand Terrace City Hall 11:30 a.m. Tues. 2/16/10 Chamber Luncheon/State of — 1:30 p.m. the City.Address, 22795 Barton Rd. 7 Grand Terrace Sr. Center 22627 Grand Terrace Rd. 11:30 a.m. Wed. 2/17/10 8 Grand Terrace City Hall 5 —7 p.m. Tues. 2/23/10 22795 Barton Rd. Meeting locations and times were scheduled to allow residents the opportunity to attend morning, afternoon, and/or evening meetings. Working residents had the opportunity to attend meetings in the morning prior to going to work, on their lunch hour, and/or the evenings after their work day. Retired and/or non-working residents had the same opportunity to attend all meetings allowing flexibility of time and location. The various meeting times also allowed residents with non-traditional work hours the opportunity to attend one of several community meetings. Meeting locations were selected based on their convenience to the residents. Residents within proximity to the proposed park site were within walking distance of 45 some meetings or within 1-2 miles if they chose to use other transportation, such as the' bus. i In addition to specifically scheduled community meetings, City staff presented the park proposal to community members while attending regular meetings of the Grand Terrace Lion's Club, City Special Events Committee, Chamber of Commerce Board Meeting, r Grand Terrace Senior Center Luncheon, and City Council. - This enabled staff to include input from additional members of the community that may not have been able to attend any of the community meetings due to schedule conflicts. ' B. Meeting Description of the method(s) Number of General description of the # used to invite residents to this residents residents (youth, seniors, meeting. (see page 3 for a list who families or other groups) of seven examples) participated. who participated. 1 Partnered with Grand Terrace Lion's Club. Added to agenda, 40 Seniors, youth & presentation, survey Business owners distributed, resident questions and input. (Breakfast served) 2 Partnered with Chamber of Commerce. Added to agenda, Business representatives survey distributed, presentation 20 and.officials and resident input. (Lunch served) 46 3 Partnered with another City Dept./Service. Invite & survey 75- Youth and Families also posted on City web site. Ad in local newspaper. (Snacks provided) { ` 4 Mailed invitation to residents within 1 mile of park project site 25 Families, youth and Invite and survey also posted seniors on City web site. Ad in local newspaper. 5 Mailed invitation and survey to residents within 1 mile of park 30 Youth, families, and project site. Invite & survey also seniors posted on City web site.'Ad in local newspaper. (Snacks provided) 6 Partnered with Chamber of Commerce & State of the City Seniors, business Address. Invite &survey also 75 representatives posted on City,web site. Ad in local newspaper. (Lunch served) 47 i 7 Partnered with Grand Terrace i Sr. Center. Added to agenda, Seniors presentation during lunch hour, 100 survey distributed and resident input collected. (Lunch served) 8 Open forum one hour before and during City Council meeting. Mailed invitation to Youth, families, seniors residents within 1 mile of park 30 project site. Posted meeting and survey on City web site. Ad in local newspaper. (Snacks provided during open forum) i C. Goal 1: Selection of the Recreation Features: City staff presented an overview of the new park grant opportunity at each community, meeting. After the presentation, a period of open discussion followed encouraging residents to ask questions and identify their preferred park features. Residents were given a "design your community park" worksheet. The worksheet included the new park location, vicinity map, and a suggested list of features. Including'recreational, exercise; activities, equipment, tot lot that that have been identified as desired features in past ' discussions with our residents. Additional space was provided for residents to list others amenities and features not listed on the worksheet. i 4F Design of the Recreation Features: Residents were given the opportunity to provide design ideas for the park site. The "design your community park" worksheet (Attachment A) included a basic park layout with a blank park site map that allowed residents to draw their own park design. Many residents preferred to voice their design features rather than draw or list them on the t worksheet. Approximately, worksheets were collected. Staff recorded-the,different suggestions, which were: • Install restrooms and storage building with the entrances facing south or opposite adjacent residences. • Install picnic tables; and park benches with anti-skateboard controls while still providing an aesthetically pleasing appearance. • Include a walking trail with work-outstations. .' Goal 2: Location of the recreational features within the park Residents expressed their preferences for locations of,recreational features in the park by charting the features on the map provided on the worksheet. They also expressed their preferences during the open discussions following each presentation, both with each other, as well as with staff. Several ideas were.debated and mutually agreed upon by members of the community through the open forum. These preferences were documented on the worksheets and by staff. One specific request was to locate the sport courts away from adjacent residences. The reasons expressed for the location of park features included placement to allow clear visibility into the open space area, ensuring easy accessibility to facilities, view of 4A park features from neighboring residences, public safety, and proximity of features to adjoining property lines. Goal 3: Safety and park beautification: Residents expressed their ideas for safe public use and park beautification through open discussion forums, at community meetings, as well as through written expression on the worksheets. Residents listed and/or drew park designs for safe public use on the . I design worksheets. Their ideas included: i • Perimeter lighting and decorative style fencing permitting a clear view into the park area with the ability to secure the park after hours. • Soft materials for use under the playground equipment and along the walking path, such as mulch or decomposed granite. ! • Native plant garden providing added beauty to the open space area • Bike racks to'encourage residents to keep the bikes out of the park area preserving the landscape, walking path, and other park amenities 5. Sustainable Techniques 5-A Sustainable Technique Description i t Water efficient irrigation system The landscaping will be designed to incorporate soil' in compliance with the Water moisture meters. This technique will keep the native, Efficient Landscape Ordinance plants from being overwatered and wasting potable water. The meters will have a threshold that will engage the irrigation system when soil moisture j levels are too low. 5 Pervious surfaces As many surfaces as possible will be pervious. All paths, sidewalks and sport courts will be made of pervious materials or pavers. At least 10% recycled materials The use of recycled materials will be incorporated in for construction the playground area and the restroom structure. Recycled rubber from tire fabrication and retreading can be used in flooring or as a,base underneath the playground equipment. Recycled plastic can be used in many different ways including but not limited to, non-potable water storage containers, sewer pipes, equipment and furniture. Native landscaping Native landscaping reduces potable water use. Native and other drought tolerant plants require little to no water and no inorganic fertilization. Also by planting low maintenance landscaping the park will remain sustainable for years with minimal maintenance. 5-B Sustainable Technique Description Skylights or solar tubes The restroom structure will use skylights and/or sky tubes on the south facing roofline to utilize ambient light to illuminate the inside of the structure. By using natural lighting the interior lighting will be reduced. Use of shade trees to aid in Planting of fern pines or similar native trees to the cooling of structure east, west and north of the restroom structure will provide shade in the summer months. The shade will aid in cooling the structure. Low flow water fixtures Low flow water fixtures will be installed in the restroom structure. All sink, urinals and toilets will be low flow and water efficient. On-site water recycling The site will be designed and constructed in such a way as to collect on-site runoff and rainwater to be used for the irrigation system. The non-potable water will then be filtered and reused for irrigation. Due to the and conditions of the environment, staff is currently investigating the feasibility of such a system. Bio-swale A bio-swale will be used to collect any off-site runoff; water. The bio-swale will filter the runoff water prior; to it entering the drainage system or the water table.,, 6. Project Funding A. The project funding is expected to meet all costs needed to complete the project. i Land acquisition will be the first action required to begin development of the,new active' park. All costs related to the design, development, construction, equipment purchase and installation will utilize grant funds as soon as the funds are made available. The park will be completed and open to the public within the grant performance period. Any additional expenses that may arise after grant approval would be paid for with funds from the Community Redevelopment Agency. 7. Fees and Hours of Operation A. The park will be open 7 days per week from 6 a.m. to dusk. The park will be open to all residents regardless of income level for enjoyment of the facilities without financial burden. The park will provide families, youth and seniors the opportunity to enjoy the open space and be physically fit. B. There will be no entrance or membership fee for the park to allow free access for all to enjoy the park facilities. 8. Youth Outdoor Learning Employment or Volunteer Opportunities Outdoor Learning Opportunity Number of Residents Native Garden Plant Education Activity— Approximately 15-20 Youth will be invited to create labels for the native plants and learn about each species Annual Chalk Art in the Park Approximately 20-30 Participants will be-designated a square to create a work of art with chalk. The artist must follow the theme of water conservation and "green" living. All ages are welcome to participate. Local artists will provide instruction, assistance and determine the winner. The winner will Sl have their chalk art featured in the local newspaper. Park Naming Contest— Approximately 100 The local newspaper will run an ad asking residents to submit suggestions for the park name. The participants will be asked to keep in mind the character of the park and the emphasis on water conservation and an active lifestyle. City Council will announce the winner and they will be featured in the local newspaper. Logo or Design Contest— Approximately 50 Participants will be asked to create a logo or design based conservation. The logo or design can be designed using pervious materials (such as tiles) or native plants. City Council will announce the winner and they will be featured in the local paper. 9. Community Challenges and Project Benefits A. The community in proximity to the project site is faced with multiple challenges. These challenges include a lack of an easily accessible and usable open park space, i and the urgent need for a recreational area which can offer physical activities along with some social, educational and environmental elements. There are two parks and one playground area located on the-east side of the City. There are no park facilities located on the northwest side. Undeveloped space is limited in the City of Grand Terrace. This.park would provide nearby residents a usable open space recreational facility in proximity to their homes. Currently, residents from this neighborhood,must travel to other park locations which are approximately two miles from their homes. If residents were to walk or ride their bicycles to the other parks, they must travel across Interstate 215, travel along, at least, two major streets and cross several intersections. This poses a great safety risk for all residents, especially seniors, youth and families with small children. The new park would significantly improve the recreational opportunities for this severely underserved neighborhood. The new park would provide environmentally conscious landscape, irrigation, and lighting. The vacant parcels would be transformed into an active neighborhood/community park allowing residents to gather together and enjoy the recreational, social and educational opportunities. B. The new active park will enhance the recreational opportunities in this community. Citizens providing input to staff frequently mentioned they would like exercise stations along a walking trail. Residents will have the opportunity to enjoy daily use,of the park, on their own schedule, which will increase physical activity thereby, providing excellent health benefits. Residents will also receive educational amenities minutes from their homes. The two mobile home parks within proximity to the park would have usable open space and activities for their children. These mobile home communities currently 55 have no usable open space to work out, have picnics or play. The installation of sport courts and picnic areas would meet the growing need for recreation and social gatherings in the neighborhood. Grand Terrace encourages all residents to participate in water conservation, native gardening and other environmentally healthy activities. The park will allow residents to recognize .the beautiful native and drought tolerant environment located within their owni community. The native garden area provides additional educational opportunities for residents. Taking a leisurely walk through the garden and reading plant description cards provides physical and mental health benefits that are not available in other City parks. Building an active park in this critically underserved community willincrease the potential for a healthy mind and body, create positive emotional and social experiences, and significantly improve the quality of life. C. The City is able to provide administrative and operational experience to complete and maintain the project. The project team includes the Community and Economic Development Director, Management Analyst, Senior Planner, Building and Safety/Publiic Works Director, Public Works Maintenance team and the Senior Code Enforcement Officer. This team has extensive knowledge and experience with design, planning, building and safety,'and park use. This experienced team, partnered with our design and development consultant, landscape architect and professional contractors, ensures the completion and success-of this project. Long-term maintenance will be overseen by the Building and Safety/Public Works Director and Maintenance Supervisor. Our maintenance staff currently maintains two 5�: park areas including multiple soccer and baseball fields. The existing parks' amenities include tot lots, playground equipment, walking track, picnic areas, and snack bar areas used by our youth sports organizations. The maintenance staff has experience in ball field maintenance, playground equipment repairs, electrical and plumbing repairs, and general landscape maintenance. The proposed park features include low maintenance landscape, hardscape, and other sustainable techniques, minimizing required. maintenance. Staff will seek to provide additional-educational opportunities such as classes regarding exercise routines, art and maintaining a sustainable environment. Staff's knowledge and commitment to this project will enable the City to complete the development, construction, maintenance, sustain long-term operations and provide educational opportunities at the new active park for this critically underserved community. �y 57 i California: S • Parks Community FactFinder Report i i I This is your Community FactFinder report for the project you have defined. Please refer to your Project ID in any future communications about this project. �?A 4 l Project ID: 5532 Date created: January 27, 2010 Loma- County: San Bernardino �� WalnutA+ve 7 ` I- City: Grand Terrace y Coordinates: 34.036871, -117.326343 -- Total Population: 2,215 Median Household Income: $37,068 Card a 15 ( -- r Number of people 322 o.a as n — ____ y� . ._ . J I I -rr sc below poverty line: Project st*- Park acreage: 0.00 ! r , I Park acres per 1,000 population: 0.00 All numbers above have been calculated based on a 1/2 mile radius from the point location of your project. Demographics are figured by averaging population numbers over selected census block groups and using the percent of the block group within the project circle to determine the actual counts. i Parks and park acres are based on best available source information but may not always contain exact j boundaries or all parks in specific locations. Parks acreage does not include major lakes or ocean. Users ! can send update information to: parkupdates@parks.ca.gov i Data sources: Demographics-claritas Pop-Facts, block group level (Apr. 2008) Parks - Calif. Protected Areas Database v. 1.3 (Aug. 2009) I y^LA14Wh Conroanitr FactAnder is a service of the ` California Department of Parks and Recreation "N(A' www-parks.ca.gov Commun b,Gr..enJ.f. •r crul•• by flnfo Nefwort w w.9r~W0.0rq I{ I 5E PLEASE SEE ITEM 4 UNDER CRA FOR COMPLETE REPORT. COUNCIL AGENDA ITEM NO. �`�