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Agenda Packet 2010-06-22Z C ity Coiuicil Tony Ferrara, Mayor /Chair Jim Guthrie, Mayor Pro Tem /Vice Chair Joe Costello, Council /Board Member Chuck Fellows, Council /Board Member Caren Ray, Council /Board Member d. Steven Adams, City Manager Timothy J. Carmel , City Attorney Kelly Wetmore, City Clerk AGENDA SUMMARY CITY COUNCIL /REDEVELOPMENT AGENCY MEETING TUESDAY, JUNE 22, 2010 7:00 P.M. Arroyo Grande City Council Chambers 215 East Branch Street, Arroyo Grande 1. CALL TO ORDER 7:00 P.M. 2. ROLL CALL COUNCIL /RDA 3. FLAG SALUTE ARROYO GRANDE VILLAGE IMPROVEMENT ASSOCIATION 4. INVOCATION DR. MAYER - HARNISH BAHAI FAITH 5. SPECIAL PRESENTATIONS 5.a. Presentation of Mayor's Commendations Recognizing Several Individuals for Bravery and Unselfish Community Involvement 6. AGENDA REVIEW 6a. Move that all ordinances presented for introduction or adoption be read in title only and all further readings be waived. AGENDA SUMMARY —JUNE 22 PAGE 2 7. COMMUNITY COMMENTS AND SUGGESTIONS This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions on matters not scheduled on this agenda. Comments should be limited to those matters that are within the jurisdiction of the City Council. The Brown Act restricts the Council from taking formal action on matters not published on the agenda. In response to your comments, the Mayor or presiding Council Member may: ♦ Direct City staff to assist or coordinate with you. ♦ A Council Member may state a desire to meet with you. ♦ It may be the desire of the Council to place your issue or matter on a future Council agenda. Please adhere to the following procedures when addressing the Council: ♦ Comments should be limited to 3 minutes or less. ♦ Your comments should be directed to the Council as a whole and not directed to individual Council members. ♦ Slanderous, profane or personal remarks against any Council Member or member of the audience shall not be permitted. 8. CONSENT AGENDA: The following routine items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Any member of the public who wishes to comment on any Consent Agenda item may do so at this time. Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action. The City Council may approve the remainder of the Consent Agenda on one motion. 8.a. Cash Disbursement Ratification (KRAETSCH) Recommended Action: Approve the listing of cash disbursements to vendors for the period 06/01/10 through 06/15/10. 8.b. Statement of Investment Deposits (KRAETSCH) Recommended Action: Receive and file the report of current investment deposits as of May 31, 2010. 8.c. Consideration of Confirmation of Assessments for Tracts 1158, 1769, 2310, and 2236 (KRAETSCH) Recommended Action: 1) Adopt a Resolution confirming landscaping assessments for all parcels within Tract 1158; 2) Adopt a Resolution confirming landscaping and lighting assessments for all parcels within Tract 1769; 3) Adopt a Resolution confirming the assessments for the Parkside Assessment District for all parcels within Tract 2310 (Parkside Village Subdivision); and 4) Adopt a Resolution confirming the assessments for the Grace Lane Assessment District for all parcels within Tract 2236 (Grace Lane Subdivision). AGENDA SUMMARY —JUNE 22 2010 PAGE 3 8. CONSENT AGENDA (cont'd) 8.d. Consideration of a Resolution Authorizing the Deposit of City Funds in Various Financial Institutions (KRAETSCH) Recommended Action: Adopt a Resolution authorizing the deposit of City funds in various financial institutions. 8.e. Consideration of Ar)r)roval of Final Parcel Mar) AG 09 -0101: Subdividina an Existing 7.25 Acre Parcel into a 0.88 Acre Parcel and a 6.37 Acre Parcel Located at 1170 West Branch Street (McCLISH) Recommended Action: Approve Final Parcel Map AG 09 -0101, subdividing an existing 7.25 acre parcel into a 0.88 acre parcel and a 6.37 acre parcel located at 1170 West Branch Street. 8.f. Consideration of Acceptance of the City Hall Parking Lot & Bioswale Improvements and the Crown Hill and Corbett Canyon Road Sidewalk Improvements Promect, PW 2008 -07A (McCLISH) Recommended Action: 1) Accept the project improvements as constructed by D -Kal Engineering, Inc., in accordance with the plans and specifications for the City Hall Parking Lot & Bioswale Improvements and the Crown Hill & Corbett Canyon Road Sidewalk Improvements, PW 2008 -07A; 2) Direct staff to file a Notice of Completion; and 3) Authorize release of the retention, thirty -five (35) days after the Notice of Completion has been recorded, if no liens have been filed. 8.g. Consideration of Resolutions Approving a Property Conveyance Agreement for Acauisition of the Pearwood Hills Property from the Citv to the Redevelor)ment Agency (ADAMS) [CC /RDA] Recommended Action: 1) [Council]: Adopt a Resolution approving a Property Conveyance Agreement to sell the Pearwood Hills property to the Redevelopment Agency; 2) [RDA Board]: Adopt a Resolution approving a Property Conveyance Agreement to purchase the Pearwood Hills property from the City; and 3) Adopt a Resolution authorizing the Agency Chair to accept and consent to recordation of deeds and grants to the Arroyo Grande Redevelopment Agency pursuant to Government Code 27281. 8.h. Consideration of Resr)onse to the San Luis Obisr)o Countv Grand Jury Rer)ort on Leaf Blower Hazards (ADAMS) Recommended Action: 1) Direct staff not to prepare an Ordinance at this time prohibiting two -cycle gasoline powered leaf blowers and restricting days and hours of operation allowed for leaf blower use; and 2) Approve the response to the San Luis Obispo County Jury Report on leaf blower hazards. 9. PUBLIC HEARINGS: None. AGENDA SUMMARY —JUNE 22 2010 PAGE 4 10. CONTINUED BUSINESS: 10.a. Consideration of Ballot Measures for Appointive City Clerk and City Treasurer (ADAMS) Recommended Action: 1) Adopt a Resolution ordering the submission to the qualified voters of the City measures relating to the City Clerk and City Treasurer positions at the General Municipal Election to be held on Tuesday, November 2, 2010, as called by Resolution 4282; 2) Adopt a Resolution setting priorities for filing written arguments for City measures and directing the City Attorney to prepare an impartial analysis; 3) Adopt a Resolution providing for the filing of rebuttal arguments for City measures submitted at municipal elections; 4) Approve ballot arguments; 5) Approve the response to the San Luis Obispo County Grand Jury Report: "Electing City Treasurers and Clerks: Wise or Otherwise ? "; and 6) Appropriate $3,000 from the City's General Fund Balance for membership of the City Treasurer and Director of Administrative Services in the California Municipal Treasurers Association and to attend a 3 -day training class in September in response to recommendations of the Grand Jury. 11. NEW BUSINESS: 11.a. Introduction of an Ordinance Adding Chapter 5.90 to Title 5 of the Arroyo Grande Municipal Code Regarding Bingo and Remote Caller Bingo Games (PERRIN) Recommended Action: Introduce an Ordinance adding Chapter 5.90 to Title 5 of the Arroyo Grande Municipal Code related to bingo and remote caller bingo games. 11.b. Consideration of Approval of Fiscal Year 2009 -10 Third Quarter /Budget Update Report (KRAETSCH) [COUNCIL /RDA] Recommended Action: 1) Approve detailed budget adjustments listed in the 3rd Quarter budget report; 2) Approve Schedule A and budget shortfall recommendations; and 3) Approve (Deny) requests for additional appropriations in the General Fund. 11.c. Consideration of Aaaointment of Votina Deleaate and Alternate for the Leaaue of California Cities Annual Conference (ADAMS) Recommended Action: Appoint one Council Member as the voting delegate and up to two Council Members as the alternate voting delegates for the League of California Cities Annual Conference. 11.d. Review of Council Aaaointments to Reaional and Local Boards. Commissions Committees and Subcommittees (WETMORE) Recommended Action: Review the current list of appointments to those regional and local boards, commissions, and committees with Council representation, make appointments to vacant positions, and approve reassignments as desired. AGENDA SUMMARY —JUNE 22 2010 PAGE 5 12. CITY COUNCIL REPORTS This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating. (a) MAYOR TONY FERRARA: (1) San Luis Obispo Council of Governments /San Luis Obispo Regional Transit Authority (SLOCOG /SLORTA) (2) South San Luis Obispo County Sanitation District (SSLOCSD) (3) Brisco /Halcyon /Hwy 101 Interchange Project Subcommittee (4) Other (b) MAYOR PRO TEM JIM GUTHRIE: (1) South County Area Transit (SCAT) (2) Community Action Partnership (3) California Joint Powers Insurance Authority (CJPIA) (4) Homeless Services Coordinating Council (HSOC) (5) Economic Vitality Corporation (EVC) (6) Tourism Committee (7) Other (c) COUNCIL MEMBER JOE COSTELLO: (1) Zone 3 Water Advisory Board (2) Air Pollution Control District (APCD) (3) Fire Oversight Committee (4) Other (d) COUNCIL MEMBER CHUCK FELLOWS: (1) Integrated Waste Management Authority Board (IWMA) (3) County Water Resources Advisory Committee (WRAC) (4) Other (e) COUNCIL MEMBER CAREN RAY: (1) Other. 13. CITY COUNCIL MEMBER ITEMS: The following item(s) are placed on the agenda by a Council Member who would like to receive feedback, direct staff to prepare information, and /or request a formal agenda report be prepared and the item placed on a future agenda. No formal action can be taken. None. 14. CITY MANAGER ITEMS: The following item(s) are placed on the agenda by the City Manager in order to receive feedback and /or request direction from the Council. No formal action can be taken. None. AGENDA SUMMARY —JUNE 22 2010 PAGE 6 15. COUNCIL COMMUNICATIONS Correspondence /Comments as presented by the City Council. 16. STAFF COMMUNICATIONS Correspondence /Comments as presented by the City Manager. 17. COMMUNITY COMMENTS AND SUGGESTIONS This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions. Comments should be limited to those matters that are within the jurisdiction of the City Council. The Brown Act restricts the Council from taking formal action on matters not published on the agenda. 18. ADJOURNMENT * * * * * * * * * * * * * * * * * * * * * * * ** All staff reports or other written documentation, including any supplemental material distributed to a majority of the City Council within 72 hours of a regular meeting, relating to each item of business on the agenda are available for public inspection during regular business hours in the City Clerk's office, 214 E. Branch Street, Arroyo Grande. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability - related modification or accommodation, contact the Legislative and Information Services Department at 805 - 473 -5414 as soon as possible and at least 48 hours prior to the meeting date. * * * * * * * * * * * * * * * * * * * * * * * ** This agenda was prepared and posted pursuant to Government Code Section 54954.2. Agenda reports can be accessed and downloaded from the City's website at www.arroyogrande.org * * * * * * * * * * * * * * * * * * * * * * * * ** City Council /Redevelopment Agency Meetings are cablecast live and videotaped for replay on Arroyo Grande's Government Access Channel 20. The rebroadcast schedule is published at www.slo- span.orgg Mayors Commendation t o be presented at me eting. Agenda Item 5.a. Page 1 THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item 5.a. Page 2 0 INCORPORATE 9 # � --- — fat `.� 'j. ��..' u 4 � Kati � � #K .!l?LY , 0, 1911 , 1FOR MEMORANDUM To: CITY COUNCIL FRONT: ANGELA KRAETSCH, DIRECTOR of ADMINISTRAT SERVICE Y. FRANCES R. HEAD, ACCOUNTING SUPERVISOR SUBJECT: CONSIDERATION of CASH DISBURSEMENT RAT F ATION DATE JUNE 2 201 RECOMMENDATION: TION. It is recommended the City Council ratify the attached listing of cash disbursements for the period June 1 through June 15, 2010. FINANCIAL IMPACT: The re is a $691 9 4 92.48 fiscal irnpact that includes the following items: • Accounts Payable Checks 145533-145692 $ 264,641.12 • Payroll Checks & Benefit Checks $ 426 BACKGROUND ND Cash disbursements are made weekly based on the submission of all required documents supporting the invoices submitted for payment. Prior to payment, Administrative Services staff reviews all disbursement documents to ensure that they meet the approval requirements adopted in the Municipal Code and the City's Purchasing Policies and Procedures Manual of February 2000. ANALYSIS of ISSUES: The attached listing represents the cash disbursements required of normal and usual operations during the period. The disbursements are accounted for in the FY 2009 -10 budget. ALTERNATIVES: The following alternatives are provided for the Council's consideration: 0 Approve staff's recommendation; Do not approve staff's recommendation; a Provide direction to staff, Agenda Item 8.a. Page 1 CITY COUNCIL CONSIDERATION ATION OF CASH DISBURSEMENT RATIFICATION JUNE 22, 2010 PAGE 2 ADVANTAGES: 0 The Administrative Services Department monitors payment of invoices for accountability, accuracy and completeness using standards approved by the Council. Invoices are paid in a timely manner t0 establish goodwill with merchants. ants. Discounts are taken where applicable. DISADVANTAGES: No disadvantages have been identified as long as City Council confirms all expenditures are appropriate. ENVIRONMENTAL REVIE II: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, June 17, 2010. The Agenda and report were posted on the City's website o Friday, June 18, 2010. No public comments were received. Attachments; 1 . June '1- June'1 , 2010 — Accounts Payable Check Register 2. June 4, 2010 — Payroll Check & Benefit Checks Register Agenda Item 8.a. Page 2 Page: 1 00900 1387728 9512512919 ATTACHMENT I 44.10 145538 0610312019 002180 AVAYA, INC 2729979479 Pa arp + � Hist 74.79 Check History Listin 145539 0610312019 001944 BASIC CHEMICAL S15732154 0611512010 :3 AM CITY OF ARROYO RAND 145540 06103/2019 000090 BRISCO MI LL & LUMBER Bank code: boa 9511412919 24.57 C heck Da V en d or status C Date Invoice Inv. Date Amount P Ch ■ tal 1 45533 06/0212010 00604 CLEARS INC 080210 08!0212010 1 00. 00 190.00 145534 0610212019 909553 SLO COUNTY 060210 06!0212010 2 2,035.25 145535 06/031201 00 AGP VIDEO, INC 3912 05105/2910 1,935.00 1 145586 0610312910 007848 LARGO AREVALO 052510 05125/2010 262.50 262.50 145537 06/03/2010 906697 AT 000091 387727 051251201 9 2961 Page: 1 00900 1387728 9512512919 14.49 44.10 145538 0610312019 002180 AVAYA, INC 2729979479 9510112310 74.70 74.79 145539 0610312019 001944 BASIC CHEMICAL S15732154 05/17/2010 736.71 736.71 145540 06103/2019 000090 BRISCO MI LL & LUMBER 1 44725 9511412919 24.57 1 44959 95/9712910 13.57 38.14 14554' 06193/2919 001577 BU DII E PRINTING ( BA) 14209 9512112910 234.12 234.12 145542 0619312910 090096 BURTON'S FIRE, INC. 92801 0519512910 61.77 61.77 1 45543 06/03/2010 000119 CA ST D E PT OF 1 800059487 05/19/2010 1,399.41 180905 95 10 9511912919 1,050.06 1809059495 9511912919 1,946.97 1800059491 9511912919 232.80 1 800059512 9511912919 178.89 1800059500 0511 91201 165.60 1 800059492 0511912919 1 41.7' 1890059513 95119/2010 106.53 1899969693 05/19/2010 104.99 1800059488 05/19/201 68.25 D 180905951 9511912019 49.59 t� 1800059497 0511912010 47.25 4,591.67 c� CL 145544 0610312010 090129 A ST EMPL E1EL 052110 9512112010 18,492.90 16,492.00 0 - 145545 96/0312919 007858 RICK CABREROS 052510 0512512910 30.90 39.90 c� 1 45546 06133/2910 005890 CANNON 48575 9413012019 880.03 M 00 wiD Page: 1 apCkHi t Check History Listing Page: 2 06/16/2010 : 5AM CITY OF ARROYO GRANDE Bark code: boa Check # Data Vendor 145547 0610312010 004548 CARMEL & NACCASHA, LLP 145548 06/0312010 000603 CAR QUEST AUTO PARTS 145549 06/0312010 007865 CASTLE PLUMBING 145550 06/0312010 001314 C D F /STATE FIRE TRAINING 145551 0610312010 007798 CENTAURI LABS 145552 05103/2010 067849 CENTRAL COAST CAR CLUB 145553 0510312010 000195 CRYSTAL SPRINGS WATER 145554 0610312010 007548 CSG SYSTEMS INC 145555 0610312010 001840 DELL MARKETING LP 145556 06/0312010 000208 J B DEWAR, INC Status ClearNold Date Invoice 48690 48691 48687 48675 43688 48689 13206 13205 7314 -411780 7314 - 402222 7314- 409512 7314-408123 4513 -101 052710 10D0566 l E0230 10E0254 052510 0800435 65042 65428 XDT27D837 730141 730137 Inv. Date Amount Paid 0413012010 660.00 0413012010 462 0413012010 472.50 0413012010 440,00 0413012010 22 0.00 0413012010 220 00103/2010 12,665.43 0610312010 463.50 0512312010 1 03.30 0411612010 79.79 05/19/2010 19.01 0511312010 5.91 05/2112010 250.00 05/2712010 40.00 0413012010 16.00 06126/2010 1 6.00 05/2012010 1 5.00 05/2512010 30.00 04130/2010 5.00 0512112010 1 0612012010 51 6.65 05107/2010 3,233.55 05117/2010 57.73 0511712010 41.26 3,375.00 13,133.93 208.01 250.00 40.00 45.00 30.00 5.00 2,198.45 3,233.35 D 728797 04/3012010 32.97 131.58 cD 145557 0610312010 002673 DOCTORS MEDPLUS IVIED 0 006241 0511012010 75.00 76. CL 0 145558 0610312010 007328 DRIVE CUSTOMS 763 0512512010 2,544.50 2 145559 0610312010 007850 FENNY EABLAND 052510 05/2512010 65.00 65.00 M 00 iD Fags: 2 a pkHiat Check History Listing Page: 3 06 /15/2010 :36AM CITY OF ARROYO GRANDE Bank code: boa C heck # Dante Vendor Stature Clear/Void Date Invoice Inv. Date Amount Paid Check Total 145569 06/03/2010 091525 FERGUSON ENTERPRISES, 6167163 0 5/27/2010 53.15 P 3 6153622 05/26/2010 35.89 6132714 05117/2010 27.19 116.23 145561 06/03/2010 967322 FORD CREDIT DEPT 67 -434 1035202 05126/2010 12,656.35 12,656.85 1 45562 06/03/2010 006262 FRANC'S LOCK & KEY 30482 051051201 19-58 30409 04119/201 15.88 30493 05/10/2010 10.00 30493 0511212014 5.44 50.90 145563 06/03/2010 007851 BELLY GRA SLE 052510 05125/2014 30.04 30.04 145564 06/03/2010 002358 GREAT WESTERN TERN ALARM 100502323101 06/01/2010 28.00 28.40 145565 06/03/2010 000288 CITY OF GR 1 ER BEACH 060310 0614312414 190.64 190.64 1 45566 0610312410 997652 GW PRINT MEDIA ING 10634 0511012010 489.38 10666 0512012010 69.33 558.71 1 45567 0610312010 001237 HANS N A GREG. MID 1 082392 0511212010 630.96 1082051 0511112010 449.94 1,080.90 145568 0614312010 001068 PATRICK J IREY 051910 4511912010 50.00 54.44 1 45569 06103/2010 000348 J W ENTERPRISES 235393 0512012014 101.38 161.33 1 45570 0610312014 004959 CRAIG JIHANEL 052510 0512512414 30.00 30.00 1 45571 0610312010 007009 KAESER & BLAIR INC 00506182 0511712010 754.99 69564222 0512012010 336.46 1 1 091.45 145572 06103/2010 991793 J J 1 ELLER & ASSOCIATES, 008341719 05/1 2/2010 296.81 204.81 1 45573 0610312010 003479 LAFCO 042110 0412112014 31.00 34.00 D c� 145 574 0610312010 000 393 LUCIA MAR UNIFIED SCHOOL 100900 0511812010 950.00 950.40 145575 0614312010 005539 LTT1E MARTIN 052510 0512512010 70.00 74.00 c� 145576 06/0312010 000429 MINER'S ACE HARDWARE, 133696 05/12/2010 55.35 c.Q 47543 05/05/201 39.08 M 0 , i V D P 3 p kHl t Check History Listing ing P 4 0611512010 :3 AM CITY OF ARROYO GRANDE Banc code: boa Check # Da Vendor Statue Dleerlld Date Invoice Inv. D Amount Paid Check Total 145577 06103/2010 000441 MDLLAHEY FOND 145578 06103/2010 000468 O FFICE DEPOT 145579 06103/2010 007853 DAN OR 145580 06/03/2010 000481 PACIFIC GAS & ELECTRIC 145581 06/03/2010 007802 PERFECTION FIFE 145582 06/0312010 004158 PHOENIX GROUP 145583 06103/2010 005938 PITNEY BOWE 145584 06103/2010 000498 PITNEY BOWES, INC 145585 06/0312010 006696 POSTAL CONCEPTS 61 029 145536 06/03/2010 000523 R & T EMBROIDERY, I N t> 145587 06/03/2010 007654 S I LV IA RA 11I RE K5679 65/18/2010 34.77 CL 145588 06/0312010 007855 ,JESSICA ROCHA 0 05119/2010 30.36 52328 145589 06103/2010 007856 ERNESTO ROSAS c� 145590 06/03/2010 002932 RUTAN & TUCKER, LLP M 00 05120/2010 9.02 Mi 05/14/2010 8.66 61 029 05/2412010 33.08 K6098 65/2412010 35.88 K5679 65/18/2010 34.77 34794 05122/2010 34.21 K5763 05119/2010 30.36 52328 05/11/2010 14.66 K33795 05/13/2010 9.46 L14500 05120/2010 9.02 33860 05/14/2010 8.66 114321 05/19/2010 3. 41 F CS20 73 04128/2010 482. FOCS5205664 04/22/2010 308.15 206187 05/12/2010 104.01 51 7584075001 04/29/2010 62.52 052510 05/25/2010 30.00 5/1 704689 05/17/2010 67.75 1482 0511 35.00 042010157 05/13/2010 136.52 5501281 330 0413012010 190.40 7656355 -MY10 05113/2010 655.00 1664 05/25/2010 40.62 1662 05/2512010 37.69 1663 0512512010 26.95 36630 0511412010 20.11 052510 0512512010 30.00 052510 05/25/2010 30.00 052510 05/25/2010 30.00 582428 05107/2010 231.37 313.96 894.63 62.52 30.00 67.75 35.00 136.52 190.40 355.00 1 05.26 20.'11 30.00 30.00 30.00 Page: 4 ap kHist Check History Listing Page: 0611512010 8:3 CITY OF ARROYO GRANDE Bank code; boa Check Date Vendor Status DlearNoid Date Invoice Inv. Date Amount Pall Check Total tM cD M0 (D c� cD co an Page: 582440 05/071201 68.60 289.87 145591 96/03/2916 007857 JOSE SANTANA 052510 0512512010 36.00 30.00 145 592 0610312010 007373 F L R I N DA SJ OSTE [ T 052510 0512612010 30.00 30.00 115593 06/0312010 000552 SLO COUNTY 950610 0510612010 475.00 476.00 1 45594 06/0312010 000504 SLO COUNTY NEWSPAPERS 6861136 04119/2010 660.84 6877987 05102/2010 558.28 6883423 0413012010 260.96 6882346 05102/2010 269.08 6878759 0410212010 217.94 6882166 0510212010 126.31 6878520 04102/2010 122.57 6881134 0411912010 120.70 6879904 04/10/2010 81.43 2,308.10 1 45595 0610312010 007699 TIERRA WEST ADVISORS INC 04 -AG 9511 812010 1,400.00 1 145596 9010312910 007236 LESLIE TILLED' 952510 95/2512010 30.09 39.00 145597 9010312919 902370 TITAN INDUSTRIAL 1041005 96/2112010 103.65 1941008 06/21/2010 02.1 200.82 145598 06/03/2010 906551 UNITED STAFFING ASSOC. 069133 05/19/2010 1 069345 05126/2010 1 2,106.40 145599 06/03/2010 007859 MICHAEL VELAZQUEZ 052510 0512612010 30.00 30.00 145600 96/0312010 002137 VERIZON WIRELESS 0865300220 0412612010 13.04 13.04 145691 96103/2010 907860 GLORIA VILLA 052510 95/25/2010 30.00 30.00 145602 06163/2010 007851 SHAUN WAT EI I 051110 06/11/2010 42.90 42.00 145593 06/03/2010 000687 WAYNE'S TIRE, INC 793206 05117/2910 26.00 26.00 145604 9610312010 007863 WE-DO EQUIPMENT ENT REPAIR W048102 05114/2010 262.31 W048136 9512312010 27.68 289.99 145605 06/03/2010 000690 LEE WILSON ELECTRIC 1004 0611112010 1 Page: aplilt 0611512010 8 :36AM Check History Listing CITY OF ARROYO GRANDE Page: 6 Bank code: boa Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 0377 -A 0511912010 628.95 0233 0511912010 145.20 0380 0511912010 1 00.49 21768.89 145606 06/0312010 007804 RUTH YAH I N IAN 052510 05125/2010 30.00 80.00 145611 06/1012010 007874 ACE REALTY R f0001 03465 0610912010 1.96 1.96 145612 06/1012010 007872 WILLIAM BAILLIE R f000103463 0610912010 29.92 29.92 145613 06/1012010 007873 MATTHEW HENDERSH T I ef000103464 0610912010 45.13 45.13 145614 06/10/2010 007870 PETER HOUCK RefOOO 103461 0610912010 60.84 60.84 145615 06/10/2010 007875 HL ASNA DEVELOPMENT CO R f000103466 06109/2010 128.44 128.44 145616 06/10/2010 007871 ARNULFO MENDOZA RefOOO 103462 06/0912010 20.09 20.09 145617 06110/2010 007866 JOHN SOTO Ref0001 03359 06/0312010 180.00 180.00 145628 06/11/2010 007867 .K. M. E. LLC 10 -028 06104/2010 281.94 251.94 145629 0611112010 003313 APED WHOLESALE SUPPLY 1354148 04/20/2010 38.88 38.88 145630 06/1112010 006607 AT&T 1387731 0512512010 1 ,808.86 000001387733 05125/2010 1 85.28 000001387732 05/2512010 86.85 000001387726 05/2512010 37.24 000001382937 05122/2010 81.60 000001387729 05/25/2010 30.97 1387725 05125/2010 1 5.94 2,196.74 145631 06/1112010 005405 ATASCADERO MUTUAL 061610 0611612010 30.00 80.09 145632 06/1 112010 000078 BLUEPRINT EXPRESS ESS 9 1 06/0812010 155.13 D 9768 06/03/2010 3.75 158.88 Q cD 1 45633 06/11/2010 003734 ADRIAN R,JA 060710 0610712010 490.00 490.00 0 0 145634 06111/2010 000087 BREZDEN PEST CONTROL, 121155 0512012010 105.00 105.00 145635 06111/2010 000090 BRISCO MILL & LUMBER 144789 05/21/2010 108.70 M 00 144330 05/2612010 12.08 00 iD Page: 6 ap kH!st Check History Listing R 7 06/1512010 8 :3 AM CITY OF ARROYO GRANDE B ank cod e; boa C hock # gate Vendor Status Clear/Void Date Invoice Inv. Date Amount Raid Check Total t� c� ^ CL ice/ �.l.i MM M W 0610912010 4. 33 144974 145636 0611112010 001577 B URDINE PUNTING (DBA) 14209 05/17/2010 140.25 14144 0511 712010 11 8.76 141 05/1 812010 52.30 14172 145637 06/11/2010 007571 CAL POLY CORPORATION AF04079 145633 0611112010 007085 CALP RTLAND 91013303 145639 06/1112010 000603 CAR VEST AUTO PARTS 7314 - 404299 1211 5/2009 -1 8.97 7314 - 1C - 375100 145540 0511112010 007877 RYAN CONLEY 060710 145641 06/1112010 007728 SCOTT CRA113 060910 145642 06/1112010 000195 CRYSTAL SPRINGS WATER 17922 06102/2010 11.90 018068 1 45643 06/1112010 000201 D G REPAIR (D BA) 3428 0512812010 95.00 3427 145644 0611112010 005091 JOHN DEERE LANDSCAPES 54545401 05/14/2010 44.10 5445591 05/2112010 42.52 54550031 05/1312010 25.75 54446575 05/21/2010 -87.78 54540422 0512 112010 - 175.55 5 547 512 145645 06111/2010 000208 J E DEWAR, INC 916715 145645 0611112010 006848 DNI3 INDUSTRIAL SUPPLY 399648 145647 06/1112010 007129 TERRY ENGER 060910 145648 06/1112010 000240 FARM SUPPLY CO 341959 145649 06/11/2010 006333 F1A CARD SERVICES 5/20 -1331 05/20/2010 1,650.57 5120 -7845 0512012010 709.08 5120 -6362 0610912010 4. 33 125.08 05/17/2010 234.12 05/17/2010 140.25 0511 712010 11 8.76 05/1 812010 52.30 545.43 05/2612010 3,334.00 3 05/21/2010 3 3 0412612010 24.35 1211 5/2009 -1 8.97 5.36 0610712010 59-61 59.61 06109/2010 40.00 40.00 06102/2010 22.35 06102/2010 11.90 34. 05128/2010 404.34 0512812010 95.00 499.84 0512112010 480.81 05/14/2010 44.10 05/2112010 42.52 05/1312010 25.75 05/21/2010 -87.78 0512 112010 - 175.55 329.35 05121 12010 18, 676.07 1 8, 376.07 05/24/2010 78.48 78.48 06109/2010 166.00 166.00 05/23/2010 46.03 48.93 05/2012010 3 05/20/2010 1,650.57 0512012010 709.08 R a pCkHist C heck History Listing P age: 06/1512010 : 6AM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status Clear/Void Date Invoice Inv. Date Amount Paid Check Total 145650 0611 112010 004772 FISHER SCIENTIFIC CO LL 145651 0611112010 004790 DEANNA FLOD 145652 0611112010 000262 FRANK'S LOCK & KEG' 145653 06/11/2010 001237 HAN S N AGGREG. MID 145654 0611112010 002405 CHUCK HARE 145655 0611112010 004188 EDDIE HARRIS 145656 0611112010 002820 1NDFF, INC 145657 0611112010 007299 GAT N KETTING OL1 1IER 145658 06/11/2010 002093 MARK LAC DAGU E 145659 0611112010 000376 LATIN PRODUCTS, INC 145660 06/1112010 005511 CHRISTOPHER LI TNER 145661 06/11/2010 000393 LUCIA MAR UNIFIED SCHOOL 145662 06/11/2010 000429 DINER'S ACE HARDWARE, /Y ii 0 i� /Y F 0 � 5120 - 05120/2010 645.74 5120 -9702 05/20/2010 310.05 5/20 -6347 05120/2010 252.63 5120 -7837 0512012010 29.02 5/20 -4015 0512012010 16.30 7 99 -14920 0512512010 6 8,244.15 060010 06/0912010 46, 46.00 30605 0010712010 44.81 44.81 1034065 05/1912010 462.66 462.68 060910 06/09/2010 88.00 88.00 060910 06109/2010 40.00 40.00 1653959 0511312010 169.52 16581 0512012010 39.45 228.97 060910 0010912010 80.00 60.00 060710 0610712010 66.70 86.70 9272578 0512812010 156.65 9272577 0512812010 91.61 250.26 060910 0610912010 72.00 72.00 100884 0511412010 165.08 100650 0511412010 75.00 100880 05/1412010 89.23 309.31 K379 0610112010 49.98 K35395 0612712010 86.86 5116 0512512010 28.25 3273 06104/2010 21.78 L 1 550 3 05/28/2010 20.78 K8753 0812812010 14.65 L14123 0511812010 1 3.01 K35127 0512512010 -18.49 165.79 Rage: apC kHIst Check History Listing Page: 0611512010 8:36AM CITY OF ARROYO GRANDE Bank code. boa Check # Date Vendor Status Clear/Vold Date Invoice Inv. Date Amount Paid Check Total 1 45663 06111/2010 000441 MULLAHEY FORD FOGS 5206504 0 1 12010 92212 145664 06/1112010 000466 NOBLE SAW, INC 145665 0611112010 000468 OFFICE DEPOT 148686 06/11/2010 001739 PACIFIC GAS & ELECTRIC 145667 06/11/2010 000490 PERVO PAINT T C 145668 0611112010 001697 PET PICK-UPS 145669 0611112010 003655 QUINN RENTAL SERVICES 145670 0611112010 007678 RA DESIGNS 145671 0611112010 002781 RANGE MASTER D t� c� CL 0 c� �F F CS 206483 0512612010 91.67 83440 0811012010 1 86.20 82780 0810412010 15.21 517741642001 0810112010 88.02 5201 09628001 0512412010 62.66 819337270001 0511712010 23.93 520074024001 0612412010 23.79 817741563001 0413012010 7.79 519504916001 0811 812010 6.68 520741 397001 0812812010 6.51 1 7444624001 04/28/2010 4.40 519069530001 0511312010 4.26 5145631 73001 0312112010 3.50 CO TRACT 1 110598 0412912010 1,657.76 6325 0811212010 1 1 228.67 32750 08116!2010 1 1 136.22 122041 -0001 03/31 /2010 338.00 1412 0512312010 212.06 4182 0610112010 30.48 4128 0512812010 46.75 41 0512312010 40.24 4129 0612612010 40.24 4011 0411312010 40.24 4108 05/2512010 40.24 4029 0412012010 40.24 4080 04/20/2010 40.24 4040 0412312010 40.24 4066 0810612010 40.24 4096 0512112010 40.24 4082 0811412010 40.24 313.79 171.41 231.54 1 1 1,136.22 385.00 212.06 Page: a CkHist 0611512010 :3 AM Check History Listing in CITY OF ARROYO GRANDE P 1 Banc code: boa C he c k # Date Vendor Status Clear/Vold Date Invoice Inv, Date Amount Paid Check Total 4910 94/13/2019 31.64 4113 0612512010 21.64 662.81 145672 06/1112010 003031 ROBERTSON SUPPLY 8493 06120/2010 211.80 8496 05/19/2010 182.48 394.26 146673 06/11/2010 906921 BLAZE R S ELLEY 06691 06/0912916 154.00 1 64.96 1 45674 0611112019 996 694 LAWRENCE RUC E R 060919 06/091201 66.00 66.60 146675 0611112010 903649 CHARLES D (DON) RUIZ 069919 0619912019 86.90 66.60 145676 06/1112019 699639 SAFETY -KLEEN SYSTEMS, 69771526 9612612019 1 74.29 174.20 145677 0611112919 999576 SANTA MARIA TIRE, INC 669522 9612312619 302.47 362.47 146678 06/11/2616 097676 LYNNE SA VERY 060910 0619912616 14.47 14A7 146679 0611112619 003024 MARK S HAFFER 060919 06/6912019 66.66 66.09 146680 0611112010 004340 TUCKER ER SCHMIDT 060310 0610312010 66.00 66.00 145681 06/1112010 003838 BIL AS OIL COMPANY, INC 244243 06127/2010 3,987.91 3 145682 06/11/2010 000663 SLO COUNTY 966 919 06109/2010 26.99 26.69 145683 0611112010 004860 TAMMY SMITH 460910 0610912010 30.00 30- 00 145684 0611112010 003641 SOUTH COUNTY SANITARY 2963858 0610112010 424.64 2964196 0610112010 224.32 2958640 061011201 224.32 2954337 06/01/2010 11.82 686.1 146666 0611112010 000602 SOUTH SLO COUNTY BAN IT 053110 05!3112010 92 92 96.66 145686 0611112010 000609 BO SP 060910 0610612010 220.00 220. ^ 145607 .l.i 0611112010 000642 TORTE GRADING & PAVING 0004887 -1N 66!24!2616 1 ,996,99 1,900.00 ^^ 146688 CL 06/11/2010 002137 ERI N WIRELESS 0872989410 06!22/2010 69,86 69.85 0 146669 06/1112010 002609 1 ATERB Y PLUMBING 060910 0611012010 6 61278.67 145690 0611112010 00068811 EST C NINA NURSERIES 332063 0610612010 369.93 369.93 �F N� Page: 1 ap kHi t C heck History Listing Page: 11 06/16/2010 : CIA CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 145691 06/11/2010 060699 LEE WILSON ELECTRIC 1 005 06/02/2010 1,515.00 6382 05/26/201 493.54 2,608.54 145692 06/1112010 004897 WOOD RODGERS INC 72546 05112/2016 18,391.75 18 146 checks in this report boa Total Total Checks: 26041 D c� c� CL 0 U3 c� �F w� 264 Page: 11 ATTACHMENT CITY OF ARROYO GRANDE DEPARTMENTAL LABOR DISTRIBUTION PAY PERIOD 51141201 - 5!27!2010 081041'10 FUND 919 379,778.68 5191 Salaries Full time 19 ,939.47 FUND 220 16,100-33 5192 Salaries Part -Terri - PPT 22,138.59 FUND 228 1,865.27 5103 Salaries Part -Time - TPT 15,988.28 FUND 284 1,825.98 5105 Salaries OverTime 11,907.07 FUND 285 1 5197 Salaries Standby 349.59 FUND 812 8 5198 Holiday Pay 8,789.23 FUND D 640 19,672.28 5109 Sick Pay 2,005.94 42 5110 Annual Leave Buyback - 5111 Vacation Buyback 98.07 5112 Sick Leave Buyback - 5113 Vacation Pay 10 5114 Dump Pay 1 5115 Anneal Leave Pay 8,547.59 5121 PETS Retirement 73 5122 Social Security 19 5123 PARS Retirement 525.45 5126 state Disability Ins. 1 5127 Deferred Compensation 738.59 5131 Health Insurance 42,980.78 5132 Dental Insu 4, 551.75 5133 Vision Insurance 1 5134 Life Insurance 545.51 5135 Long Term Dis ability - 5143 Uniform Allowance - 144 Car Allowance 875.09 5148 Council Expense - 5147 Employee Assistance - 5148 Boot Allowance - 5 149 Motor Pay 150.00 5150 Bl- Lingual. Pay 125.09 5151 Cell Phone Allowance 327.50 426 Agenda Item 8.a. Page 14 INCORPORATED JK\A)tY 10. 1911,/ C" MEMORANDUM DUM To. CITY COUNCIL FROM: ANGELA KRAETSCH, DIRECTOR of ADMINISTRATIVE E SERVICE Y: MICHELLE MAYFIELD, TREASURER A tA SUBJECT: CONSIDERATION of STATEMENT of INVESTMENT DEPOSITS DATE: .JUNE 22,2010 RECOMMENDATION: It is recommended the City Council receive and file the attached report listing the current investment deposits of the City of Arroyo Grande, as of May 31, 2010, as required b Government Code Section 3b. FINANCIAL IMPACT: There is no funding impact to the City related to this report. However, the City does receive interest revenue based on the interest rate of the investments. BACKGROUND: This report represents the City's investments as of May 31 2010. It includes all investments managed by the City, the investment institution, investment type, boob value, maturity date, and rate of interest. As of May 31, 2010 the investment portfolio was in compliance with all State laws and the City's investment polar. ANALYSIS of ISSUES: The Director of Administrative Services has historically submitted to the City Council a monthly report, providing the following information: I . Type of investment. 2. Financial institution (bank, savings and loan, broker, etc). 3. Date of maturity. 4. Principal amount. 5. Rate of interest. 6 Current market value for all securities having a maturity of more than 12 months. 7. Relationship of the monthly report to the annual statement of investment policy. Agenda Item 8.b. Page 1 CITY COUNCIL CONSIDERATION F INVESTMENT DEPOSITS JUNE 22 201 PACE 2 ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Recommended Al emati e - Approve staffs recommendation t attached report listing the current investment deposits. - Do not approve staff's recommendation - Provide direction to staff receive and file the ADVANTAGES: Safety of principal is the foremost objective of the City. Investments are undertaken in a manner that seeps to ensure the preservation of capital in the overall portfolio. DISADVANTAGES: Some level of risk is present in any investment transaction. 'Losses could be incurred due to market price changes, technical cash flavor complications such as the need to withdraw a non- negotiable Time Certificate of Deposit early, o even the default of an issuer. To minimize such risks, diversifications of the investment portfolio by institution and by investment instruments are being used as much as is practical and prudent. ENVIRONMENTAL TAL REVIE : No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: MEI TS: The Agenda was posted in front of City Hall on Thursday, June 17, 2010. The Agenda and report were posted on the City's web site on Friday, ,dune 18, 2010. No public co mments were received. Attachments; 1. Portfolio Summary: May 31 , 2010 Agenda Item 8.b. Page 2 ATTACHMENT 1 4CITY F -- & 1h, CITY OF ARROYO GRANDE Portfolio Management ement Portfolio Summery April 30, 2010 City of Arroyo Grande 214 P. Branch 8t. Arroyo Grande, CA 93430 Phone: (305)473 -5400 Interest Investments Boob Value Interest Date Rate PY Date of Purchase Term Maturity Date ° of Portfolio Local Agency Investment Funds 18,756,041.21 0.560% 1.530% 96.46% erti aces of Deposit - Banks Golden Security Bank 90,000.00 4.4010 October 9, 2008 700 October 9, 2010 0.46% First Federal Bank of California 99,000.00 2.53% September 18, 2009 731 September 21, 2011 0.51% Redding Bank of Commerce 250,000.00 2.40% September 21, 2009 913 March 21, 2012 1.29% First republic Bank 250,000.00 8.9010 November 9, 2009 36 mos November 9, 2012 1.29% Total Certificates of Deposit 589 } 000.00 3.54% Total Investments 19,445,041.21 109.00% .l.i CL 0 .l.i 00 W V THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item 8.b. Page 4 ij tR0 INCORPORATED MEMORANDUM JULY 10, 1911 Fo To: CITY COUNCIL FROM: ANGELA F RAETSCH, DIRECTOR of FI 1A CIAL SER ICES SUBJECT: CONSIDERATION of CONFIRMATION of ASSESSMENTS FOR TRACTS 11 8, 17'6 , 2310, AND 2236 ATE* JUNE 229 2010 RECOMMENDATION: It is recommended the City Council; • Adopt a Resolution confirming landscaping assessments for all parcels within Tract 1158; • Adopt a Resolution confirming landscaping and lighting assessments for all parcels within Tract 1769; • Adopt a Resolution confirming the assessments for the Parkside Assessment District for all parcels within Tract 2316 Parksi a Village Subdivision); Adopt a Resolution confirming the assessments for the Grace Lane Assessment District for all parcels within Tract 2236 (Grace Lane Subdivision). FINANCIAL IMPACT: The City entered into agreements with four assessment districts to provide lighting and landscaping maintenance. The assessments are placed on the taxpayers tax roll each year. The total amount of revenue to be received from the assessments districts in Fiscal Year 2610 -11 is $71,358. BACKGROUND: On June 9, 1992, Landscaping and Lighting Assessment District No. 1 was created to provide landscaping and lighting improvements and maintenance for Tract 1769. The annual assessment was $166 per panel located within Tract 1763 a total of $3,000). The Tract 1769 landscaping and lighting assessment must be confirmed by the Council each year. On May 28, 1996, at the request of the homeowners within Tract 1166, the City agreed to provide landscaping and related maintenance to a portion of the greenbelt and appurtenances located on Oak Park Boulevard for the benefit of panels located within Agenda Item 8.c. Page 1 CITY COUNCIL CONSIDERATION OF CONFIRMATION OF ASSESSMENTS JUNE 22 2010 PAGE 2 Tract 1158. The City Council and parcel owners agreed to an annual $40 per parcel City charge (for a total of $2,800) for this service. On November 8, 200 5, at the request of Parkside pillage LLC, the sole owner and developer of the Parkside pillage Subdivision (Tract 2310), the City Council approved the formation of the Parkside pillage Assessment District. This assessment is adjusted annually by the April Consumer Price Index (CPI). The CPI for 2010 is 1.9%. The annual assessment varies from $599 per parcel to $944 per parcel for a total of $56,875 annually. This is an increase of $1 r 079 above the prior year. O November 28, 200 6, at the request of Vista Roble LLC, the sole owner of the Grace Lane Subdivision (Tract 2236 the City Council approved the formation of the Grace Lane Assessment District. This assessment is also adjusted annually by the April Consumer Price Index {CPI} or 1.9% in 2010. The annual assessment ranges from $477 to $632 per parcel for a total annual assessment of $9,683. This is an increase of $183 above the prior year. ANALYSIS of ISSUES: All of the listed assessments must be confirmed each year. The assessments will be added to the tax roll of the affected property owners and collected by the San Luis Obispo County Tax Collector. ALTERNATIVES: The following alternatives are presented for the City Council's consideration: - Approve staff recommendations; Do not approve staff recommendations; Modify staff recommendation and approve; - Provide direction to staff. ADVANTAGES: By confirming the assessments, the City will continue to receive the funding to maintain the landscape districts. DISADVANTAGES: There is no disadvantage identified in this recommendation. ENVIRONMENTAL REVIEW: No environmental review is required for this item. Agenda Item 8.c. Page 2 CITY COUNCIL CONSIDERATION F CONFIRMATION F ASSESSMENTS .JUNE 22, 2010 PAGE 2 PUBLIC NOTIFICATION AND COMMENTS: The Agendas was posted in front of City Hall on Thursday, June 17, 2010. The Agenda and report were posted on the City's website on Friday, June 18, 2010. No public comments were received. Agenda Item 8.c. Page 3 RESOLUTION No. A RESOLUTION of THE CITY COUNCIL of THE CITY OF ARROYO GRANDE CONFIRMING A LANDSCAPIN ASSESSMENT FOR TRACT 1158 WHEREAS, on May 28, 1996, the Arroyo Grande City Council app roved an Amendment to Covenants, Conditions, and F estrictions for Tract 1158 {Oak Park Villas whereby the City of Arroyo Grande agreed to provide certain specified landscaping and related maintenance on real property located along Oak Park Boulevard adjacent to Tract 1 158, Arroyo Grande, California, which maintenance was previously provided by the homeowners in Tract 1158 and administered by the Oak Park Villas Homeowners Association; and WHEREAS, EAS, the owners of Lots 1 through 70, Tract 1158 agreed to pay an annual assessment of 40 per parcel, in exchange for the City's agreement to provide said maintenance services. NOW, THEREFORE, BE IT RESOL by the City Council of the City of Arroyo Grande as follows: I . That the above recitals are true and correct and incorporated herein. 2. That the assessment for the 2010 -11 fiscal year shown on Exhibit "A", attached hereto and incorporated herein by this reference, are confirmed as true and correct. 8. Immediately after adoption, a certified copy of this Resolution shall be filed with the County Auditor. 4. The assessment shall be collected at the salve time and in the same manner as County takes are collected and all lags providing for the collection and enforcement of County takes shall apply to the collection and enforcement of the assessments. After collection by the County, the remaining amount of the assessments, after deducting compensation due the County for collection, shall be paid to the City. O n motion by Council Member , seconded by Council Member and on the following roll call vote, to wit: AYES NOES. ABSENT: the foregoing Resolution was passed and adopted this � day of Agenda Item 8.c. Page 4 RESOLUTION NO. PAGE 2 T 1 Y FERRARA, MAY R ATTEST: KELLY 1 ETM RE, CITY CLERK APPROVED AS TO CONTENT, STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY . CARMEL, CITY ATTORNEY Agenda Item 8.c. Page 5 EXHIBIT °A" SAN LUIS OBISPO COUNTY TAX SYSTEM TfACT '1'1 8 ASSESSMENTS FOR TAX ROLL YEAR 2010 -11 Fund Assessment # Ch i Fend Assessment # char 1764 007773001 40.00 1764 007773036 40.00 1764 007773002 40.00 1764 007773037 40.00 1764 007773003 40.00 1764 007773036 40.00 1764 007773004 40.00 1764 007773039 40.00 1764 007773006 40.00 1764 007773040 40.00 1764 007773006 40.00 1764 007773041 40.00 1764 0077 ! 3007 40.00 1764 007774001 40.00 1764 007773008 40.00 1764 007774002 40.00 1764 007773003 40.00 1764 007774008 40.00 1764 007773010 40.00 1764 007774004 40.00 1764 007773011 40.00 1764 007774006 40.00 1764 007773012 40.00 1764 007774006 40.00 1764 007773013 40.00 1764 007774007 40.00 1764 007773014 40.00 1764 007774008 40.00 1764 007773015 40.00 1764 007774003 40.00 1764 007773016 4 0.00 1764 00777 40.00 1764 007773017 40.00 1 764 007774012 40.00 1764 007773018 40.00 1764 007774013 40.00 1764 007773013 40.00 1764 007774014 40.00 1764 00777302 40.00 1764 007774016 40.00 1764 007773021 40.00 1764 007774016 40.00 1764 007773022 40.00 1764 007774017 40.00 1764 007773023 40.00 1764 007774018 40.00 1764 007773024 40.00 1764 007774010 40.00 *1764 007773026 40.00 1764 00777 4 0.00 1764 6 007773026 40.00 1764 00777 40.00 1764 007773027 40.00 1764 007774022 40.00 1764 007773028 40.00 1764 007774023 40.00 1764 007773023 4 0.00 1764 007774024 40.00 1764 007773030 40.00 1764 007774026 40.00 1764 007778031 40.00 1764 007774026 40.00 17 007778032 40.00 1764 007774027 40.00 1764 007773088 40.00 1764 007774028 40.00 1764 007773034 40.00 1764 007774023 40.00 1764 007773035 40.00 1764 007774080 40.00 Total $,800.00 Agenda Item 8.c. Page 6 RESOLUTION No, RESOLUTION of THE CITY COUNCIL of THE CITY OF ARROYO o o G ANDE CONFIRMING A LANDSCAPING AND LIGHTING ASSESSMENT FOR TRACT 1769 WHEREAS, EAS, on dune 9, 1992, the city Council of the City of Arroyo Grande ordered the formation of Arroyo Grande Landscaping and Lighting Assessment District No. 1, within Tract 1769, containing 30 single - family home - sites located at Farroll Avenue and Oak Park Boulevard; and WHEREAS, it is the intention of the City Council of the City of Arroyo Grande to levy assessments totaling $3,000 ($100 per assessable parcel) for Landscaping and Lighting Assessment District No. 'I for the Fiscal Year 2010 -11. Noll, THEREFORE, BE IT RESOL by the City Council of the City of Arroyo Grande as follows: 1. That the above recitals are true and correct and incorporated herein. 2. That the assessments shown on Exhibit "A " attached hereto and incorporated herein by this reference, are confirmed as true and correct. 3. Immediately after adoption a certified copy of this Resolution shall be fired with the County Auditor. 4 . The assessment shall be collected at the same time and in the same manner as County takes are collected, and all laws providing for the collection and enforcement of county takes shall apply to the collection and enforcement of the assessments. After collection by the County, the remaining amount of the assessments, after deducting compensation dine the County for collection, shall be paid to the City. On motion by council Member , seconded by Council Member and on the following roll call vote, to wit: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted this � day of , 2010. Agenda Item 8.c. Page 7 RESOLUTION NO. PAGE TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARI1 EL, CITY ATTORNEY Agenda Item 8.c. Page 8 EXHIBIT °A" SAN LUIS O ISPO COUNTY TALC SYSTEM TRACT 1769 ASSESSMENTS FOR TALC ROLL YEAR 2010-11 Fund Assessment # Char e 1705 077253001 100.00 1705 077253002 1 00.00 1705 077253003 100.00 1765 077253004 100.00 1705 077253005 100.00 1765 077253006 100.00 1765 077253007 100.00 1765 077253008 100.00 1765 077253009 100.00 1765 077253010 100.00 1765 077253011 100.00 1765 077253012 100.00 1765 077253013 100.00 1765 077253014 100.00 1765 077253015 100.00 1765 077253016 100.00 1765 077253017 100.00 1765 077253010 100.00 1765 077253019 100.00 1765 07# 253020 100.00 1765 077253021 100.00 1765 077253022 100.00 1765 077253023 100.00 1765 077253024 100.00 1765 077253025 253025 100.00 1765 077253026 100.00 1765 077253027 100.00 1765 077253028 100.00 1765 077253020 100.00 1765 077253030 100.00 TOTAL 000.00 Agenda Item 8.c. Page 9 RESOLUTION Igo. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE CONFIRMING THE ASSESSMENTS FOR THE PARKSIDE VILLAGE ASSESSMENT DISTRICT (TRACT 2310) WHEREAS, EAS, the owner (Park side pillage, LLC of Lots 1 through 67, Tract 2310, requested the City form a maintenance assessment district commonly referred to as the Park side pillage Assessment District to provide means to finance the costs of maintenance, operation, and service of certain specified improvements; and WHEREAS, EAS, n November 8, 2005, the Arroyo Grande City Council adopted Resolution Igo. 3858 ordering the formation of the Park side pillage Assessment District confirming assessments, assessment district diagram, and approving the levying of assessments for Tract 2310 Parkside pillage); and WHEREAS, assessments for the Park side pillage Assessment District must be confirmed by the City Council for each fiscal year. NOW, , THEREFORE, BE IT RESOLVED E by the City Council of the City of Arroyo Grande as follows: 1. That the above recitals are true and correct and incorporated herein. 2. That the assessment for the 2010-11 fiscal year shown on Exhibit "A", attached hereto and incorporated herein by this reference, are confirmed as trine and correct. 3. Assessments shall be adjusted annually by modifying the adopted value up o down in conformance with time Consumer Price Index for the Los Angeles region. The factor for the adjustment of the assessments shall be calculated using the April index and established by the Director of Financial Services, utilizing the following formula: Factor = I + Current Index � Prior Year Index Prior Y ear Index 4 . Immediately after adoption, a certified copy of this Resolution n shall be filed with the County Auditor. 5 . The assessment shall be collected at the same time and in the same manner as County takes are collected, and all lags providing for the collection and enforcement of County takes shall apply to the collection and enforcement of the assessments. After collection by the County, the remaining amount of the assessments, after deducting compensation due the County for collection, shall be paid to the City. Agenda Item 8.c. Page 10 RESOLUTION 1 . PAGE On motion by Council Member ber , seconded by Council Member and on the following roll call Grote, to wit: AYES: DOES: ABSENT: the foregoing Resolution w passed and adopted this day of 201 . Agenda Item 8.c. Page 11 RESOLUTION I . PAGE TONY FEFAfA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Agenda Item 8.c. Page 12 EXHIBIT °A" SAN LUIS OBISPO COUNTY TAX SYSTEM TRACT 231 ASSESSMENTS FOR TAX ROLL YEAR 2010-11 Fund Assessment # Char 1893 377258932 899.33 1898 977288903 533.99 1898 377255994 833.00 1898 077255008 899.09 1898 077255006 899.09 1893 077255007 5 99.99 1893 077285008 899.99 1893 977255009 599.99 1898 07725 010 599.00 1893 077 593.03 1893 077285012 899.00 1893 07725801 599.30 1898 077258014 899.99 1 898 077255018 944.00 1898 077255016 944.90 1893 077255017 944.99 1898 077255018 944.99 1898 977285019 944.00 1893 0772850 9 1898 077258921 944.99 1898 077258022 94 1 898 0772 5 80 2 3 9 1898 0772550 944.00 1838 377258027 944.00 1893 077255028 944.99 1893 0772550 944.00 1893 077255030 944.00 1898 077255031 344.00 1898 077255032 944.00 1893 077288083 944.99 1898 077255034 944.00 1808 077258085 944.00 1838 077255086 944.99 1833 077255087 944.99 1893 077255088 944.00 1893 077255039 944.00 1893 077285040 944.00 1893 077255041 944.00 Agenda Item 8.c. Page 13 EXHIBIT "A" 1030 077255042 344.00 1830 077255043 344.00 1833 077255044 344.00 1833 077255045 344.00 1 833 077255046 344.00 1 833 077255047 344.00 1833 0772 3 1833 077255043 344.00 1030 077255050 344.00 1 833 07725 344.00 1 8 07725 344.00 1833 077255053 344.00 1 833 077255054 344.00 1833 077255055 04 1833 077255050 344.00 1833 077255057 344.00 1033 077255058 344.00 1833 077255053 344.00 1833 077255000 044.00 1893 077255061 344.00 1 838 077255082 344.00 1 838 077255003 344.00 1 838 077255084 044.00 1838 077255085 0 1538 077255060 3 1838 077285087 344.00 1833 077255058 944.00 TOTAL $56,875.00. Agenda Item 8.c. Page 14 RESOLUTION Ho; A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE CONFIRMING THE ASSESSMENTS FOR THE GRACE LANE ASSESSMENT DISTRICT (TRACT 2236) WHEREAS, the owner (V ista Noble, LLC of Lots 1 through 19, Tract 2236, petitioned the City to form a maintenance assessment district, commonly referred to as the Grace Lane Assessment [district to provide means to finance the costs of maintenance, operation, and service of certain specified improvements; and WHEREAS, on November ember 2 r 2006, the Arroyo Grande City Council adopted Resolution No. 3976 ordering the formation of the Grace Lane Assessment District, confirming assessments, assessment district d iagram, , and approving the levying of assessments for Tract 2236 (Grace Lane Subdivision); and WHEREAS, assessments for the Grace Lame Assessment District must be confirmed by the City Council for each fiscal gear. NOW, THEREFORE, BE IT RESOLVED by the City Council of the city of Arroyo Grande as follows: . 1. That the above recitals are true and correct and incorporated herein. 2. That the assessment for the 2010 -11 fiscal year shorn on Exhibit "A", attached hereto and incorporated herein by this reference, are confirmed as true and correct. 3. Assessments shall be adjusted annually by modifying the adopted value up or down in conformance with the Consumer Price Index for the Los Angeles region. The factor for the adjustment of the assessments shall be calculated using the April index and established by the Director of Financial Services, utilizing the following formula: Factor = 1 + Current Index — Prig Year Index Prior Year Index 4. Immediately after adoption, a certified copy of this Resolution shall be filed with the County Auditor. 5. The assessment shall be collected at the same time and in the same manner as County takes are collected, and all lavers providing for the collection and enforcement of county takes shall apply to the collection and enforcement of the assessments. After collection by the county, the remaining amount of the assessments, after deducting compensation due the County for collection, shall be paid to the City. Agenda Item 8.c. Page 15 R ESOLUTION NO. PAGE O n motion by Council Member , seconded by Council Member and o n the following roll call Grote, to it: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this� day of Agenda Item 8.c. Page 16 RESOLUTION NO. PAGE 3 TONYFERRARA,MAYOR ATTEST: KELLY I ET O E, CITY CLEF APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER E APPROVED AS TO FORM: TIMOTHY J, CARMEL, CITY ATTORNEY NEY Agenda Item 8.c. Page 17 EXHIBIT "A" SAN LUIS OBISPO COUNTY TALC SYSTEM TRACT 2236 ASSESSMENTS FOR TAX ROLL YEAR 2010 -11 Fund Assessment # Charge 1895 007019002 477.00 1895 007019003 477 .00 1895 007019004 477.00 1895 007019005 477.00 1895 007019006 477.00 1895 0070 9007 477.00 1895 007019008 477.00 1895 007019999 477.00 1895 007919910 477.00 1895 0070190.11 477.00 1 895 007019012 477.00 1895 007019014 477.00 1895 007019015 477.00 1895 007019018 477.00 1895 0070 1 9017 477.00 1895 007019018 682.00 1895 007019019 682.00 1895 007019020 682.00 1895 007019021 682.00 TOTAL $9.683.00 Agenda Item 8.c. Page 18 ARROYO INCORPORATED 92 m {I JULY 10. 1811 * 41 /FOR MEMORANDUM TO: CITY COUNCIL FROM: ANGELA KRAETSCH, DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: SUPPLEMENTAL INFORMATION AGENDA ITEM 8.c. — JUNE 22, 2010 CITY COUNCIL MEETING CONSIDERATION OF CONFIRMATION OF ASSESSMENTS FOR TRACTS 1158, 1769, 2310 AND 2236 DATE: JUNE 21, 2010 There was an inadvertent error in the Financial Impact section. The amount of revenue to be received from the assessment districts in Fiscal Year 2010 -11 should be $72,358. INCORPORATED rM MEMORANDUM JULY 10, 1911 To: CITY COUNCIL FRONT: ANGELA KRAETSCH, DIRECTOR of ADMINISTRATIVE SERVICES SUBJECT: CONSIDERATION of A RESOLUTION AUTHORIZING THE DEPOSIT OF CITY FEN DS IN V ARIOUS FINANCIAL INSTITUTIONS DATE: JUNE 22, 201 RECOMMENDATION: It is recommended the City Council adopt a Resolution authorizing the deposit of City funds in various financial institutions. FINANCIAL IMPACT: There is no funding impact to the City related to this Resolution. However, the City does receive interest revenue based on the type of investments it pursues. BACKGROUND: The previous Resolution No. 4005 was adopted on April 10, 2007 and listed the Director of Financial services. Due to the recent reorganization, the title of Director of Financial Services has changed to Director of Administrative Services. In addition, this Resolution includes the City Treasurer which was inadvertently left off of the previous resolution. ANALYSIS of ISSUES: The City of Arroyo Grande's excess funds are invested in accordance with the City's Investment Policy and as set forth in the California Government Code. The attached Resolution lists the City Manager, Accounting Supervisor, City Treasurer, and Director of Administrative Services to deposit or withdraw funds on behalf of the City of Arroyo Grande, from various financial institutions. ALTERNATIVES: The following alternatives are provided for City Council consideration: Adept the Resolution authorizing the deposit of City funds in various financial institutions; M Do not approve the Resolution; - Provide direction to staff. Agenda Item 8.d. Page 1 CITY COUNCIL ADOPT A RESOLUTION AUTHORIZING THE DEPOSIT of CITY FUNDS IN VARIOUS FINANCIAL INSTITUTIONS JUNE 22 201 PACE 2 ADVANTAGES: The Resolution provides the authorization for specific staff members to enter into investment opportunities on behalf of the City of Arroyo Grande. DISADVANTAGES: There are no identified disadvantages related to the adoption of this Resolution. However, there is some level of risks in any investment transaction. To minimize such risks, diversification of the investment portfolio by institution and by investment instruments when possible is recommended in the City's Investment Policy. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, June 17, 2010. The Agenda and report were posted on the City's website on Friday, ,dune 18, 2010. No public comments were received. Agenda Item 8.d. Page 2 RESOLUTION No* A RESOLUTION of THE CITY COUNCIL of THE CITY OF ARROYO o o G ANI E AUTHORIZING THE DEPOSIT of CITY FUNDS IN V ARIOUS FINANCIAL INSTITUTIONS WHEREAS, the City of Arroyo Grande normally has excess funds not currently needed to fund operating expenditures, and such excess funds are currently deposited by prior agreement with various financial institutions, including, but not limited to the state Local Agency Investment Fund LAI F ; WHEREAS, Government Code section 63635 distinguishes between "deposits' and "investments". and specifically provides that City monies shell be "deposited" in state or National banks., or State or Federal savings and loan associations; or may be "invested" in specified instruments; and WHEREAS, EAS, eligible financial institutions would include banks and savings and loans, primarily for active demand deposits (checking accounts and passbook savings), inactive deposits (non - negotiable time certificates),, and investment instruments. NOW, THEREFORE E E IT RESOLVED ED by the City Council of the City of Arroyo Grande as follows: 1. That the City of Arroyo Grande em ployees in the positions listed belo w, are hereby authorized to enter into agreements to deposit or withdra w money from financial institutions located in California, including United States branches of foreign banks licensed to do business in California, upon ar determination of financial soundness of such financial institutions, by the City of Arroyo Grande. Director of Administrative services City Treasurer Accounting supervisor City Manager 2. This Resolution supersedes Resolution 4006 dated April 10, 2007 and any and all other resolutions inconsistent herewith. On motion of Council Member seconded by Council Member and on the following roll call vote, to grit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day Of # 20 1 o. Agenda Item 8.d. Page 3 RESOLUTION NO. PAGE 2 TONY FERRARA, MAYOR ATTEST: KELLY I ETM RE, CITY CLERIC APPROVED AS TO CONTENT: STEVEN ADAMS, CITY ICI AI AG E R APPROVED AS TO FORM: TIMOTHY ,J. CARMEL, CITY ATTORNEY Agenda Item 8.d. Page 4 Al. 0 ORPORAT 6� r ED l MEMORANDUM ,JULY 10. 1911 TO: CITY COUNCIL FROM: TERESA MCCLISH, c MM NTIY DEVELOPMENT Y: LES EVANS, PROJECT ENGINEER — DEVELOPMENT SUBJECT: CONSIDERATION OF APPROVAL OF FINAL PARCEL MAP AG - 1 1; SUB DIVIDING AN EXISTING 7.28 ACRE PARCEL INTO AN 0.88 ACRE PARCEL AND A 6.87 ACRE P LO CATED AT 1 WEST BRANCH STREET DATE: JUNE 22,201 RECOMMENDATION: It is recommended that the City Council approve Final Parcel Map AG 09-01 01 subdividing an existing 7.25 acre parcel into an 0.8 acre parcel and a 6.37 acre parcel located at 1170 Vilest Branch Street. FINANCIAL ►L IMPACT: The development ent o the parcel proposes demolishing the existing Sizzler Restaurant and replacing it with an In -N -Out Burger restaurant, which is projected to generate sales tax revenues to the City. BACKGROUND: The real property underlying Final Parcel Map AG 09-01 01 is owned by EPT Arroyo, Inc. The property is located at 1170 West Branch Street. The map divides a 7.25 acre parcel into two commercial lots of 6.37 acres and 0.8 acres. The larger It contains an existing theater complex. The Final Parcel Map is consistent with the Tentative Parcel Map 09 -002, approved by the Planning Commission on December 15, 2009. ANALYSIS OF ISSUES: This map was approved by the Planning Commission on December 15, 2009, and subject t onditions of approval, which include requirements from the Community Development and Fire Departments. The project has completed all the utility connections on Vilest Branch Street in order to avoid trenching after the pending street resurfacing. No public improvements were installed as part of this project. The owner has entered into an Agreement with the city providing for the removal of the existing Sizzler Restaurant structure. The removal of the structure is scheduled to Agenda Item 8.e. Page 1 CITY COUNCIL CONSIDERATION of APPROVAL AL of FINAL.. PARCEL_ MAP AG , 0101; SUBDIVIDING AN EXISTING 7.25 ACRE PARCEL_ INTO AN 0.88 ACRE PARCEL AND A 6.37 ACRE PARCEL LOCATED AT 11 VEST BRAN CID STREET JUNE 22, 201 PAGE 2 begin on .June 2, 2010 and is guaranteed by a security bond as required by the Municipal Code. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve the Final Parcel map. - o not approve the Final Parcel map. Provide other direction to staff. AD The City will be compliant with State law as set forth in the subdivision Map Act by approving a final map which is in substantial conformance with the tentative neap. Approval will enable development of the proposed In-I -Out restaurant to continue. DISADVANTAGES: No disadvantages have been identified. ENVIRONMENTAL REVIEW: No environmental review is required for this ministerial item. PUBLIC NOTIFICATION AND COMMENTS: The agenda for this meeting was posted on Thursda y, June 1T, 2010 at City Hall and the agenda and staff report were posted on the city's website on Friday, ,June 18, 2010. As of the writing of this staff report, no public comment had been received. Attachment: 1. Final Parcel Map AG 09-0101 Agenda Item 8.e. Page 2 A TTACHMENT 1 A O c ! CL Alit 0 CL-5 a � �Y �� k � b �1 � � O � i �Wlif E a 0 � ne Y � 1'e Fly + � Ilia lug � lug s I g db aencia item 8 Page 3 iO�i � M • �h. ` Iii I� i 0 4WVW I 11 ca� r 1 7- ", - W F L J, I +f � f OL 4 4� I w� F � 1 4 f F cn - Ln ui OL LU ,. OL � 6�! # r 7 o9 I It ! 6 } o E I CL cr) 0 0 LF) !CL Z a� 6- d 001M 0. cj f it I MR9<F��it�SRi2� _nw mvese# p:11191 all ie� t i falls 11 I f 2 r i Gas lave O 'Bare 6,322 failri eait:c 6829 a en 118 a rr is f a s H e . : 111 � 1 0 � z dw INS son on@ evil son � � ■c�� el� �e�� rii �es� 13 a 6 a a a a a t a Agenda Item 8.e. Page 4 s pin :# CL CL- z E • 00 a, 0 Mp*p WSW 9 Will %.- u: Is MAN= U CP A� �..` M MAN I p" # ic CL. l a Ir IL a OR an as an 52 OR OR 18 fa 53 an as fia is .� ko� lrl�lrl� 9 an l IIN , '_ o b _ .�� b ■ e a s s a io a gn II ■ a a ■ a o ■a a ro I I I PF at .G.J &.O j ar .*-I a� � Udd j acQ@.4 a _o a�OO.A 1 Agenda Item 8.e. Page 5 THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item 8.e. Page 6 rINCORPORA�TEZD)j J"U L Y 0, 1911 roo M EM O RAND U M AND To: CITY COUNCIL FROM: TEI ESA cCLISH, o IUNITY DEVELOPMENT DIRECTOR BY; MIKE LINN, ASSISTANT CITY ENGINEER SUBJECT: CONSIDERATION of ACCEPTANCE of THE CITY HALL PARKING LING LOT & BIOS DALE IMPROVEMENTS O EMEI TS AND THE CROWN HILL AND COF BETT CANYON ROAD SIDEWALK IMPROVEMENTS PROJECT, PW 2008- DATE: ,DUNE 22 2010 R ECOMMENDATION: It is recommended the City Council: 1. accept the project improvements as constructed by D -Kal Engineering, Inc. in accordance with the plans and specifications for the City Hall Parking Lot Eios gale Improvements and the Crown Hill & Corbett Canyon Road Sidewalk Improvements, PW 2008-07A- 2. direct staff to file a Notice of Completion; and 3. authorize release of the retention, thirty -five 3 days after the Notice of Completion has been recorded, if no liens have been filed. FINANCIAL IMPACT: The Council authorized construction project amount is $190,626.83 ($173,29 base construction + $17,330 contingencies). The actual total construction cost, including authorized construction changes, is $308,308.52. The total cost of the project including all design, construction, construction administration and testing costs, is estimated at $880,000. The city lull Parking Lot & Bioswale Improvements costs are estimated at $48,358 and are funded from Sales Ta The Crown Hill Sidewalks project is funded from a State Bade Routes to School S 2S grant. The grant pays 90% of the project expenditures with the City providing the remaining 10% match. The Crown Hill Sidewalks costs are estimated at $300,337 and are funded from S 2S grant ($270,303), sales Tax ($23,6'14), and Expense Recovery r from sales of plans ($420 Agenda Item 8.f. Page 1 CITY COUNCIL CONSIDERATION I ATION of ACCEPTANCE OF THE CITY HALL PARKING LOT BIOS WALE IMPROVEMENTS EMENTS AND THE CROWN HILL AND CO BETT CANYON ROAD SIDEWALK IMPROVEMENTS PROJECT JUNE 22 20 BACKGROUND: On May 26, 2009, the City Council awarded a construction contract to D -Kal Engineering, Inc. for the City Hell Parking Lot & Bioswale Improvements and the Crown Hill & Corbett Canyon Road Sidewalk Improvements project in the amount of $1 73,297 and authorized the City Manager to approve contingencies in the amount of $17,330. The Crown Hill Sidewalk project scope of work involved the construction of curb, gutter, sidewalk and retaining gall improvements along the frontage of four residential lots on Crown Hill and the construction of pedestrian improvements along the existing frontage roadway on Crown Hill between Paulding Middle School and Corbett Canyon Road (State Route 227) and on Corbett Canyon Road (State Route 227) between crown Hill and Le Point street. The City Hall Bioswale scope of work involved the construction of a bioswale on the south side of the parking lot directly adjacent to the City Hell building. Construction of the bios ►Tale fulfilled the City's obligations under a settlement agreement with the Regional Water Quality Control Board. On August 11, 2099, the City Council authorized additional improvements in the amount of $175,000 that were not anticipated in the project design. The primary change was the revision of the northern connecting pedestrian pathway from the Paulding Middle School from Corbett Canyon Road (State Route 227) to 1cKinley Street due to difficulties in obtaining an encroachment permit in a timely manner from Caltrans to perform work within their right -of -way. This item was first considered by the Council at the May 2, 2010 meeting. However, due to concerns regarding the bios gale, the item was continued. ANALYSIS of ISSUES: The contractor has completed the work in accordance with the approved plans and specifications. There are no outstanding issues. During the course of the project, the contractor encountered differing site conditions that resulted in additional costs to the contract: • Additional material quantities, mostly with roadway paving on Crown Hill, • Changes to the segmental retaining wall along the south side of Crown Hill between McKinley Street and Corbett Canyon load, • Additional expenses to construct a retaining wall on the east side of McKinley Street between Harrison Street and Le Point Street, • Construction of an extended asphalt transition between the new side walk driveway approach and the existing residential driveway at 550 Crown Hill. Since the new concrete driveway narrowed the width of Crown Hill, the driveway also had to be slightly widened to create a turning radius for eastbound vehicles to Agenda Item 8.f. Page 2 CITY COUNCIL CONSIDERATION ATION of ACCEPTANCE CE of THE CITY HALL PARKING LOT IOSW LE IMPROV AND THE CROWN FILL AND CORBETT CANYON ROAD SIDEWALK IMPROVEMENTS EMENTS PF O ECT JUNE 22 201 enter the driveway without having to swerve into oncoming traffic. The wider driveway transition required a retaining wall on the west side of the driveway due to an approximate three feet difference in elevation between the driveway and the resident's front yard. The scope of work under this contract involved the demolition of the existing parking lot asphalt, within the limits of the bioswale footprint, and excavation of the soil to a depth of approximately two feet. The project plans did not include filling the bioswale void with topsoil as the actual planting and bioswale construction were to be performed by a landscape subcontractor on a separate contract. To address safety concerns of having an open excavation prior to performance of the bioswale planting contract, the City directed the placement of bioswale topsoil by D -Kal Engineering, Inc. , as a contract extra. coast Landscaping constructed the bioswale and installed the landscaping. The city council identified concerns regarding whether the bioswale is functioning as intended to filter stormwater runoff prior to entering the creek. However, since this contract did not involve the landscaping, it should not be impacted by the concerns. Staff will contact the landscape architect to verify that landscaping was installed correctly and confirm the effectiveness of the design. ALTERNATIVES: The following alternatives are provided for the Council's consideration: Approve staff s recommendations; Do not accept the project; Accept the project, but do not authorize release of retention; or Provide direction to staff. ADVANTAGES: The project is complete. Accepting the improvements will allow staff to close the project and release the project retainage. DISADVANTAGES: The disadvantage of accepting the improvements would be if subsequent deficiencies in the work were identified. However, the contract documents include a one -year warranty period for the contractor to address any construction defects that may arise. ENVIRONMENTAL EVI E W: The project is categorically exempt from CE QA pursuant to Sections 1 5301 and 1 5332. Agenda Item 8.f. Page 3 CITY COUNCIL CONSIDERATION ATION of ACCEPTANCE of THE CITY FALL PARKING LOT BIOS WALE IMPROVEMENTS EI IENTS AND THE CROWN HILL AND CORBETT CANYON ROAD SIDEWALK IMPROVEMENTS P OJECT JUNE 22, 2010 PUBLIC NOTIFICATION AND COMMENTS: The Agendas was posted in front of City Hall on Thursday, .dune 17, 2010. The Agenda and report were posted on the City's website on Friday, June 18, 2010. No public comments were received. Attachment: ent: 1. Notice of Completion Agenda Item 8.f. Page 4 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TD: CITY CLERK CITY OF ARROYO GRANDE P.O. BOX 550 ARROYO GRANDE, CA 93421 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN WHAT: I . The undersigned is owner or agent of owner of the interest or estate or the property hereinafter es rib ed as stated below. 2. The FULL NAME of the OWNER is: The..CiU oLArroyo Grande 3. The FULL ADDRESS of the OWNER is: 214 East Branch Street Arroyo Grande CaLlLornia 93420 4. The NATURE OF THE INTEREST or ESTATE of the undersigned is: in Lee 5 . THE FULL NAME and FULL ADDRESS of ALL PERSONS, if any, who hold such interest or estate with the undersigned as JOINT TENANTS or as TENANTS IN COMMON are: NAMES ADDRESSES Non 6. THE FULL NAVIES and FULL ADDRESSES of the PREDECESSOR'S in interest of the undersigned if the property was transferred subsequent to the comrn ncem nt of the work of improvements herein referred to: NAMES ADDRESSES None 7. All work of improvement on the property hereinafter described was COMPLETED April 30, 2010 8. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement i s -Kal r gineer ing, Inc. 9. The street address of said property is: None 10. The property on which said work of improvement was completed is in the City of Arroyo Grande, County of San Luis Obispo, State of California, and is described as follows: City Hall ParkiLig Lot c Bioswale Improvements and the Cron Mill Sidewalk Improvemen Project, W - 7 i Verification of I NON-INDIVIDUAL owner: I, the undersigned, declarc under penalty of pexjury under the laws of the State of California than I am the Director of Parks, Recreation and Facilities of the aforesaid interest or estate in the property described in the above notice; that I have read the said notice, that I know and understand the contents thereof, and the facts stated therein are true and correct. Teresa 1iclish, Community Development Director June 22, 20 10, Arroyo Grande, California -- END OF DOCUMENT -- Agenda Item 8.f. Page 5 THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item 8.f. Page 6 RO 0 17 J IN RPORATED i r" JULY 10, le1, MEMORANDUM FO To: CITY COUNDIUREDEVELOPMENT AGENCY BOARD of DIRECTORS FROM: STEVEN ADAMS, CITY M NA ERIRE EVELOPMENT AGENCY EXECUTIVE DIRECTOR e SUBJECT: CONSIDERATION of RESOLUTIONS APPROVING A PROPERTY CONVEYANCE AGREEMENT FOR ACQUISITION of THE PE R OOD HILLS PROPERTY FROM THE CITY To THE REDEVELOPMENT AGENCY DATE: JUNE 22, 201 RECOMMENDATION: It is recommended: 1 the City Council adopt a Resolution approving a Property Conveyance Agreement to sell the Pear vo d Hills property to the Redevelopment Agency; 2 the Redevelopment Agency Board of Directors adopt a Resolution approving a Property Conveyance Ageement to purchase the Pear wood Hills property from the City; and 3 the Redevelopment Agency Board of Directors adopt a Resolution authorizing the Agey Chair to accept and consent to record of deeds and grants to the Arroyo Grande Redevelopment evelopment Agency pursuant to Government Code 27281. FINANCIAL IMPACT: The purchase and sale will result in $980,000 in revenue to the City's General Fund and an expense of $980,000 to the Redevelopment Agency Affordable Housing Set -Aside Fund. Both are included in the FY 2009-10 Budget. BACKGROUND: The 7.2 acre Pearwood Hills property currently owned by the City is adjacent to Pe r r od Avenue and Huasna Road, previously just outside the City limit. The property was originally acquired by the City more than ten years ago to correct a flooding problem that affected homes on Pearwod Avenue from storm drainage runoff. On September 22, 2009, the City Council adopted a General Plan Amendment ent and an Ordinance for the Pearwood Hills annexation was introduced at the October 13, 2009 public hearing. The Ordinance was adopted at the October 27, 2009 meeting. On April 15, 2019, the Leal Agency Formation Commission LAFC approved the Sphere of Influence amendment and annexation. At the June 1, 2010 meeting, the Planning Agenda Item 8.g. Page 1 CITY COUNCIUREDEVELOPMENT AGENCY BOARD OF DIRECTORS CONSIDERATION OF PROPERTY CONVEYANCE AGREEMENT FOR ACQUISITION OF THE PEARWOOD HILL PROPERTY FROM THE CITY TO THE REDEVELOPMENT AGENCY JUNE 22, 2010 PAGE 2 Commission adopted a Mitigated Negative Declaration and approved the City's proposed Nesting Tentative Tract Map. ANALYSIS SIS of ISSUES: O the 7.2 acre property, drainage is detained in a portion slightly over 2.5 acres. Approximately 4.5 acres of the property is an oak studded hillside knoll above the small galley that functions as the storm drainage basin. Engineering analysis contracted by the City determined that the existing property far exceeds the area necessary for drainage, particularly given other drainage improvements that have been constructed since the property was acquired. Therefore, staff determined that a portion of the site is appropriate for development and proposed the annexation, subdivision and sale as a key measure to address the projected budget shortfall. The proposed sale and purchase price is based upon an appraisal conducted at the time the project was proposed. Acquisition by the Redevelopment Agency will enable the city to immediately benefit from the full appraised value of the property. The Redevelopment Agency has authority to acquire property for the purpose of constructing affordable housing. However, given the lot sizes, staff is concurrently working on potential property exchanges that could provide the Agency panel with higher density for affordable housing. The tract is a clustered development with four Residential Hillside lots on the uphill side of a curved, cul -de -sac street named Pearwood Hills Court. Approximately 3.5 acres of the site will be maintained as permanent open space, Including the Pearood p onding basin. ALTERNATIVES: The following alternatives are provided for the Council's consideration; Approve staffs recommendations; Make appropriate amendments to the Agreement and approve; Do not approve the Agreement and direct staff to develop other budget shortfall measures; or Provide other direction to staff. ADVANTAGES: Sale of the property from the city to the Redevelopment Agency will generate substantial revenue to the city. This will be instrumental in balancing both the FY 2009- 10 and FY 2010 -11 budgets, funding critical services to the community, and maintaining the city's financial reserves. Agenda Item 8.g. Page 2 CITY COUNCIUREDEVELOPMENT AGENCY BOARD OF DIRECTORS CONSIDERATION OF PROPERTY CONVEYANCE AGREEMENT FOR ACQUISITION OF THE PEARWOOD HILL PROPERTY FROM THE CITY TO THE REDEVELOPMENT AGENCY JUNE 22, 2010 PAGE 3 DISADVANTAGES: Acquisition of the property by the Redevelopment pment Agency will temporarily result in substantial reduction in the fund balance available for affordable housing projects. ENVIRONMENTAL REVIEW: IEW: The Planning Commission approved a Mitigated Negative Declaration for the Vesting Tentative Tract Map on June 1, 2010. No environmental review is necessary for the Property Conveyance -Agree ent. PUBLIC NOTIFICATION AND COMMENTS: The agenda was posted in front of City Hall on Thursday, dune 17, 2010 and on the City's website on Friday, June 18, 2010. No public comments were received. Attachments: 1. Property Conveyance Agreement Agenda Item 8.g. Page 3 RESOLUTION No. A RESOLUTION of THE CITY COUNCIL of THE CITY of ARROYO GRANDE APPROVING A PROPERTY CONVEYANCE AGREEMENT BETWEEN THE CITY AND THE ARROYO GRANDE REDEVELOPMENT AGENCY To EFFECT THE SALE To, AND PURCHASE BY, THE AGENCY of APPROXIMATELY 7.1 C ES of CITY-OWNED PROPERTY COMMONLY KNOWN As THE PEARWOOD HILLS PROPERTY WHEREAS, City is the owner in fee of that certain real property consisting of approximately 7.16 acres of land area, commonly known as the Pear wood Hills property, located on the north side of Huasna Road at the east edge of the City limits, which reel property is currently the subject of proceedings to annex the property to the City ("Property"); and WHEREAS, Agency is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California (California Health and Safety Code Section 33000 et seq.); and WHEREAS, City is authorized by Government code Section 3350 to dispose of real property owned by it for the common benefit; and WHEREAS,, City and Agency propose to enter into that certain Property Conveyance Agreement to effect the sale of the Property by the City to Agency for Nine Hundred Eighty Thousand Dollars ( $980,000.00) which is the fair market value of the Property as determined by an independent appraisal; and WHEREAS, on June I1 2010, the Planning Commission considered and approved a project consisting of a tentative tract neap and planned unit development on the property for intended conveyance to the Agency and found it to be consistent with the General Plan; and WHEREAS, all actions required to be taken by the City Council precedent to adopting this Resolution have been taken in accordance with applicable lair. NOW, THEREFORE, the City Council of the City Arroyo Grande resolves as follows: Section 1 . The foregoing Recitals are true and correct and incorporated herein. Section 2. The City Council hereby approves the Property Conveyance Agreement in the form reviewed by the City Council concurrently with the adoption of this Resolution and authorizes and directs the Mayor to sign the Property Conveyance Agreement on behalf of the City. The City Manager and city Attorney are authorized to make any final technical or clerical modifications to the fora of Property conveyance Agreement approved hereby prior to its execution by the Mayor. In approving the Property Conveyance Agreement the City Council finds and determines that the sale of the Agenda Item 8.g. Page 4 RESOLUTION NO. PAGE 2 Property to the Agency is for the benefit of the City and promotes the public health and welfare of its residents by effecting a conveyance that will lead to the redevelopment of the Property while at the same time disposing of property for fair market value to the benefit of the City's general fund. Section 3. The City Manager is authorized and directed to sign such other and further documents and instruments, and to take such other and further actions, as may be required to effectuate the Property Conveyance Agreement and the purposes of this Resolution on behalf of the City. Section 4. The City Clerk shall certify to the adoption of this Resolution. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to grit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of 2010. Agenda Item 8.g. Page 5 RESOLUTION NO. PAGE 3 TONY FERRA A, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: T: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Agenda Item 8.g. Page 6 RESOLUTION No. RDA 10- A RESOLUTION of THE ARROYO GRANDE REDEVELOPMENT AGENCY APPROVING A PROPERTY CONVEYANCE AGREEMENT BETWEEN THE AGENCY AND THE CITY of ARROYO GRANDE To EFFECT THE SALE To, AND PURCHASE BY, THE AGENCY of APPROXIMATELY 7.16 ACRES of CITY =OWNED PROPERTY COMMONLY KNOWN As THE PER1OOD HILLS PROPERTY WHEREAS, City is the owner in fee of that certain real property consisting of approximately 7.16 acres of land area, commonly known as the Pear good Hills property, located on the north side of Huasna Road at the east edge of the City limits, which real property is currently the subject of proceedings to annex the property to the City ("Property"); and WHEREAS, Agency is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the state of California (California Health and Safety Code Section 33000 et seq.); and WHEREAS, the Agency is authorized to acquire reel property pursuant to Health Safety Code Section 33391; and WHEREAS, City and Agency propose to enter into that certain Pro perty Conveyance Agreement to effect the sale of the Property by the City to Agency for Nine Hundred Eighty Thousand Dollars ($980,000.00) is the fair market value of the Property as determined by an independent appraisal; and WHEREAS, on June 1, 2010,, the Planning Commission considered and approved a project consisting of a tentative tract reap and planned unit development on the property for intended conveyance to the Agency and found it to be consistent with the General Plan; and WHEREAS, all actions required to be taken by the Arroyo Grande Redevelopment Agency precedent to adopting this Resolution have been taken in accordance with applicable lair. OW, THEREFORE, the Arroyo Grande Redevelopment Agency resolves as follows: Section 1. The foregoing Recitals are true and correct and incorporated herein. Section 2. The Agency hereby approves the Property Conveyance Agreement in the form reviewed by the Agency Board concurrently with the adoption of this Resolution and authorizes and directs the chair to sign the Property Conveyance Agreement on behalf of the Agency. The Executive Director and Agency counsel are authorized to make any final technical or clerical modifications to the form of Property Conveyance Agreement approved hereby prior to its execution by the Chair. Agenda Item 8.g. Page 7 RESOLUTION NQ. RDA '10- PAGE 2 Section 3. The Agency Executive Director is authorized and directed to sign such other and further documents and instruments, and to take such other and further actions, as may be required to effectuate the Property conveyance Agreement and the purposes of this Resolution lution n behalf of the Agency. Section 4. The Agency Secretary shall certify to the adoption of this Resolution. On motion of Agency Member , seconded by Agency Member , and o n the following roll call Grote, to it: AIDES: NOES; ABSENT: the foregoing Resolution was passed and adopted this day of 2010. Agenda Item 8.g. Page 8 RESOLUTION CVO, FDA 10- PAGE 3 TONY FER AF A, CHAIR ATTEST: KELLY WETMORE, AGENCY SECRETARY APPROVED AS TO CONTENT: STEVEN ADAMS, EXECUTIVE DIRECTOR APPROVED AS TO FORM: AGENCY COUNSEL Agenda Item 8.g. Page 9 RESOLUTION NO. RDA 10- A RESOLUTION UTION OF THE ARROYO GRANDE REDEVELOPMENT AGENCY AUTHORIZING ING THE AGENCY CHAIR TO ACCEPT AND CONSENT TO RECORDATION DATION OF DEEDS AND GRANTS TO THE ARROYO GRANDE REDEVELOPMENT ELOPII ENT AGENCY PURSUANT TO GOVERNMENT NMENT CODE SECTION 27281 WHEREAS, Agency is a public body, corporate and politic, exercising governmental functions and pourers and organized and existing under the Community Redevelopment ent Laver of the State of California (California Health and Safety Code Section 33000 e seq.); and WHEREAS, Government Code Section 27281 authorizes the Board of the Arroyo Grande Redevelopment Agency, by general resolution, to designate an agent to accept and consent to the recording of deeds and grants conveying any interest in or easement upon real property to the Agency by such agent executing a certificate of acceptance to be attached to the deed or grant submitted for recordation; and I HEI EAS,, it is desirable to designate by general resolution the Agency Chair, or in his /her absence the Agency ice- chair, to serve as an agent of the Agency for the purposes of accepting and consenting to the recording of deeds and grants conveying any interest in or easement upon reel property to the Agency; NOW, THEREFORE, E, the Arroyo Grande Redevelopment Agency resolves as follows: Section 1. The foregoing recitals are true and correct and incorporated herein. Section 2. The Agency hereby appoints and designates the Agency chair, or in his /her absence the Agency ice- Chair, to serve as an agent of the Agency for the purposes of accepting and consenting to the recording of deeds and grants conveying any interest in or easement upon real property to the Agency pursuant to Government Code Section 27281. Section 3 . The Agency Secretary shall certify to the adoption of this Resolution. On motion of Agency Member f seconded by Agency Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of 2010. Agenda Item 8.g. Page 10 RESOLUTION N .FDA 10- PAG 2 TONY FERRA A, CHAIR ATTEST: KELLY 1 ETMO E, AGENCY SECRETARY APPROVED AS TO CONTENT: STEVEN ADAMS, EXECUTIVE DIRECTOR APPROV A S TO FORM: AGENCY COUNSEL __ Agenda Item 8.g. Page 11 ATTACHMENT T I PROPER'L'Y CONVEYANCE AGREEMENT This PROPERTY CONVEYANCE AGREEMENT "Agreement" is entered into this day of , 2010, by and between the CITY O A RR O YO GRANDE, a California municipal corporation ("City"), and the ARROYO GRANDE RE AGENCY, a pu blic body, corporate and politic ("Agency"'). RECITALS A. Cit is the owner in fee of that certain real property consisting o f approximate 7 .16 acres of land area, c nun my known the Pearwood Mills property, located on the north side of H uasna Road at the cast edge of the City limits, which real property is currently the subject of proceedings to annex the property to the City; and which is more particularly described in the legal description attached hereto as Exhibit "A" ( "Property'). B . Agency is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California'(California Health and Safety Code Section 33000 et seq.). C. The Agency is authorized to exercise it powers wi thin the territoria j urisdiction of the City and may acquire real property therein pursuant to Health & Safety Code Section 33391., D . City is authorized by Government Code Section 3350 to dispose of real property owned by it for the common benefit. By entering into this Agreement, City finds and determines that the sale of the Property to the Agency is for the benefit of the City and promotes the public health and welfare of its residents by effecting a conveyance that will lead to the redevelopment of the Property while at the same time disposing of property for fair market value to the benefit of the City's general fund. E. City and Agency desire to eater into this Agreement to provide for the conveyance of the Property from City to Agency, on the terms and conditions set forth herein. AGREEMENT Based upon the foregoing Recitals, which are incorporated herein by this reference, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged b y the parties, City and Agency agree as follows: 1. Conv eyance of Property 1.1 Agreement to Convey Propggy. Subject to all of the terms, conditions, and provisions of this Agreement, and for the consideration herein set forth, City agrees to convey the Property to Agency and Agency agrees to accept the conveyance of the Property from City. 1.2 purchase Price. Agency agrees to purchase the property for Dine Hundred Eighty Thousand Dollars ($980,000) which is the fair market value of the Property a determined by an independent appraisal "Purchase Price 1092172.03 jOW 1 2/1 0 4� Agenda Item 8.g. Page 12 1.3 Conditions to Conveyance. 1.3.1 City's Conditions to Conveyance. City's conveyance of the Property to Agency shall be subject to the satisfaction of the following conditions which shall be for the benefit of City and may only be waived by City in its sole and absolute discretion: (a) Agency shall pay to City the Purchase Price. (b) Agency shall pay all costs associated with the conveyance including, but not limited to, any title insurance premiums,, escrow fees, and recording fees. 1.3.2 Agency's Conditions to Conv ice. City's conveyance of the Property to Agency shall be subject to the satisfaction of the following conditions which shall be for the benefit of Agency and may only be waived by Agency in its sole and absolute discretion. (a) Agency shall pay to City the Purchase Price. (b) Upon receipt of the Purchase Price, City shall execute and deliver the Grant Deed to Agency in the form attached hereto as Exhibit "B ". 1.4 Outside Date for Conveyance and Recordation of Grant Deed. Upon satisfaction (or waiver by City in its sole and absolute discretion) of the City's Conditions to Conveyance set forth in Section 1,3.1, City shall execute and deliver the Grant Deed to Agency not later than June 25,201 Upon satisfaction r waiver by Agency in its sole and absolute discretion) of the Agency's Conditions to Conveyance set forth in Section 1.3.2, Agency shall execute the Certificate of Acceptance attached to the Grant Deed and shall cause the Grant Deed to be recorded in the Official Records of San Luis Obispo County, California not later than June 30, 2010. 2. Miscellaneous. 2.1 Waivers and Amendments. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the party to e charged. Any amendment or modification to this Agreement must be in writing and executed by City and Agency. 2.2 Se erabilit . If any provision in this Agreement is hel d by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being unpaired or invalidated in any way to the fullest extent permitted by law. 2.3 Execution in Counterpart This Agreement may be executed in several counterparts, and all so executed shall constitute one agreement binding on both parties hereto, notwithstanding that both parties are not signatories to the original or the sane counterpart. 1092172.03 aO611 110 _- Agenda Item 8.g. Page 13 2 .4 Exhibits. The following exhibits to this Agreement are incorporated herein and made a part hereof: Exhibit "A" — Legal Description Exhibit "" — Frrn of Grant Deed [END — SIGNATURES ON NEXT PAGE] 1092172.03 a011 2!1 0 Agenda Item 8.g. Page 14 IN WITLESS WHEREOF, Cit and Agency have entered into this Agreement as of the date first set forth above. 44 CITY" CITY OF ARROYO GRANDE,, a California municipal corporation M Tony Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk APPROVED AS TO FORM: Timothy J. Cannel, Cit Attorney "'AGENCY "" ARROYO GRANDE REDEVELOPMENT AGENCY, a public body, corporate and politic Tony Ferrara, Chair ATTEST: Kelly Wetmore, Agency Secretary APPROVED AS TO FORM; RUTAN & TUCKER, LLP Attorneys for the Arroyo Grande Redevelopment Agency 149 17.3 a0611 1 1 o Agenda Item 8.g. Page 15 EXHIBIT "A" SAL DESCRIPTION OF PROPER'L'Y PARCEL I . ALL THAT PORTION OF LOS' 8 OF THE RESUBDIVISION FARM' OF THE RANCHOS CORRAL DE PIEDRA, PISMO AND EOLSA DE CHEMISAL,. SURVEYED Y R.R. HARRIS, NOVEMBER 1885, IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA. ACCORDING TO MAP RECORDED NOVEMBER 24, 1886 IN BOOR A PACE 63 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DE SCRI BE D AS FO ALL THAT PORTION OF THE LAND DESCRIBED IN DEED RECORDED MAY 19, 19+77 IN BOOK 1980 PACE 293 OF OFFICIAL RECORDS, WHICH IS SHOWN ON A MAP RECORDED IN BOOK 17 PACE 54 OF LICENSED SURVEYS OF SAN LUIS OBISPO COUNTY, WHICH LIES WESTERLY OF THE FOLLOWING DESCRIBED LINE. BEGINNING AT A POINT ON THE SOUTHWESTERLY LINE OF SAID LOT 81) WINCH IS NORTH 53 0 30.00. 'NEST, 600.00 FEET FROM POST S.29 AT THE MOST SOUTHERLY CORDER OF SAID LOT 8, THENCE NORTH 36 °30.00. EAST, 310.38 FEET, MORE OR LESS, TO THE INTERSECTION WITH THE NORTHEASTERLY LINE OF THE LAND D IN DEED ABOV M PARC 2: ALL WHAT PORTION OF LOT 8 OF THE RESUEDIVISION OF A FART OF THE RANCHOS CORRA DE PIEDRA, PISMO AND BO DE CH SUR BY R.R. HARRIS, NOVEMBER 1885, IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA. ACCORDING TO MAP RECORDED NOVEMBER 241, 1886 IN BOOR PACE 63 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, D AS FO ALL THAT PORTION OF THE LAND DESCRIBED IN DEED RECORDED MAY 1, 1977 IN BOOK 1980 PACE 293 OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS. BEGINNING AT A POINT ON THE SOUTHWESTERLY LINE OF SAID LOT 8, WHICH IS NORTH 53 0 30.00. WEST, 600.00 FEET FROM POST S.29 AT THE MOST SOUTHERLY CORNER OF SAID LOT , THENCE NORTH 36'30.00. EAST, 45.00 FEET TO A POINT, THENCE SOUTH 53 EAST, 100.00 FEET TO A POINT, THENCE SOUTH 36 WEST, 30.00 FEET, MORE OR LESS, TO A POINT WHICH IS 15.00 FEET FROM THE SOUTHWESTERLY BOUNDARY OF THE PROPERTY DESCRIBED IN DEED ABOVE MENTIONED, THENCE PARALLEL TO SAID BOUNDARY, SOUTH 3 °30.00, EAST, 484.37 FEET, MORE OR LESS, TO THE INTERSECTION WITH THE SOUTHEASTERLY BOUNDARY OF SAID PROPERTY, THENCE ALONG SAID BOUNDARY, SOUTH 44 WEST, 15.13 FEET TO THE SOUTHERLY CORNED OF SAID PROPERTY, THENCE ALONG THE SOUTHWESTERLY BOUNDARY OF SAID PROPERTY, NORTH 53 RTEST, 580.00 FEET TO THE TRUE POINT OF BEGINNING. APN. 047-125-002 1092172.03 a0&12/10 -5- Agenda Item 8.g. Page 16 FW U -- I Glfi DEED [See following pages] 1092 172.03 aW12110 Exhibit "" B"' Agenda Item 8.g. Page 17 Recording Requested By and When Recorded flail To: Arroyo Grande Redevelopment Agency 214 East Branch Street Arroyo Grande, CA 93420 Attn: Agency Secretary {Space Above For Recorder's Us The undersigned grantor(s) declare(s) that this transaction is This document is being recorded for the benefit exempt from the payment of a documentary transfer tax of the City of Arroyo Grande and the Arroyo pursuant to Revenue and Taxation Code Section 11922. Grande Redevelopment Agency and is exempt from payment of a recordation fee pursuant to Government Code Section 27383. GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the CITY OF ARROYO GRANDE, a California municipal corporation, hereby grants to the ARROYO GRANDE REDEVELOPMENT AGENCY, a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code Section § 33000 et seq.), that certain real property described in the legal description attached hereto as Exhibit "I" and incorporated herein by this reference. Dated 2010 CITY OF ARROYO GRANDE, a California municipal corporation ATTEST: Kelly Wetmore, City Clerk Tony Ferrara, Mayor 1092 172.03 a0b11 2110 Agenda Item 8.g. Page 18 State of California County of San Buis Obispo On , before me, 19 (insert name and title of the officer) Notary Public, personally appeared TONY FERRARA, Who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to rye that he executed the sane in his authorized capacity and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY RJUR under the laves of the State of California that the foregoing paragraph is true and correct. WITLESS my hand and official seal. Signature. (Seal) 1 092 172 M a0611 f 10 —2— Agenda Item 8.g. Page 19 EXHIBIT "I" TO GRANT DEED LEGAL DESCRIPTION OF PROPERTY PARCEL, 1. ALL THAT PORTION OF LOT 8 OF THE RESUBDIVISION OF A PART OF THE RANCHOS CORRAL DE PIEDRA, PISMO AND BOLSA DE CHEMISAL,. SURVEYED BY R.R. HARRIS, NOVEMBER 1885, IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA. ACCORDING TO MAP RECORDED NOVEMBER 24, 1886 IN BOOK PAGE 63 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: ALL THAT PORTION OF THE LAND DESCRIBED IN DEED RECORDED MAY 19 1977 IN BOOK 1980 PACE 293 OF OFFICIAL RECORDS, WHICH IS SHOWN ON A MAP RECORDED IN BOOK 17 PAGE 54 OF LICENSED SURVEYS OF SAN LUIS OBISPO COUNTY, WHICH LIES WESTERLY OF THE FOLLOWING DESCRIBED LINE: BEGINNING AT A POINT ON THE SOUTHWESTERLY LY LINE OF SAID LOT 8,, WHICH IS NORTH 53 WEST, 600.00 FEET FROM POST S.29 AT THE MOST SOUTHERLY CORNIER OF SAID LOT ; THENCE NORTH 36'30.00. EAST, 310.38 FEET, MORE DR LESS, TO THE INTERSECTION WITH THE NORTHEASTERLY LfNE OF THE LAND DESCRIBED IN DEED ABOVE MENTIONED. PARCEL 2: ALL THAT PORTION N OF LOT 8 O F THE RESUBDI ISION OF A PART OF THE RANCHOS CORRAL DE PIEDRA, PISMO AND B LSA DE CHEMIS L, SURVEYED BY R.R. HARRIS, NOVEMBER 1885, IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA. ACCORDING TO MAP RECORDED NOVEMBER 2, 1886 IN BOOR A PAGE 63 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: ALL THAT PORTION N OF THE LAND DESCRIBED IN DEED RECORDED MAY 19, 1977 IN BOON 1980 PAGE 293 OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE SOUTHWESTERLY DINE OF SAID LOT 8 WHICH IS NORTH 53 WEST, 600.00 FEET FROM POST S.29 AT TIME MOST SOUTHERLY CORNER OF SAID LOT 8; THENCE NORTH 3 °30.00. EAST, 45.00 FEET TO A POINT; THENCE SOUTH 53 0 30.00. EAST, 100.00 FEET TO A POINT, THENCE SOUTH 36 WEST, 30.00 FEET, MORE OR LESS, TO A POINT WHICH IS 15.00 FEET FROM THE SOUTHWESTERLY BOUNDARY OF THE PROPERTY DESCRIBED IN DEED ABOVE MENTIONED; THENCE PARALLEL TO SAID BOUNDARY, SOUTH 3 ° 30.00. EAST, 484.37 FEET, MORE OR LESS, TO THE INTERSECTION WITH THE SOUTHEASTERLY BOUNDARY OF SAID PROPERTY, THENCE ALONG SAID BOUNDARY, Y, SO TH 44 0 00.00. WEST, 1 5.13 FEET TO THE SOUTHERLY CORNER OF SAID PROPERTY, THENCE ALONG THE SOUTHWESTERLY BOUNDARY OF SAID PROPERTY, NORTH 53c'30.00. WEST, 580.00 FEET TO THE TILE POINT OF BEGINNING. APN. 047-125-002. 1092172.03 a0 11 110 w3' Agenda Item 8.g. Page 20 CERTIFICA'T'E OF ACCEPTANCE This to certify that the interest in real property conveyed by the foregoing grant Deed, from the City of Arroyo Grande to the Arroyo Grande Redevelopment Agency "Agency" is hereby accepted by the undersigned, on behalf of the Agency, pursuant to authority conferred b Resolution loo. of the Agency adopted on 20 10, and the Agency consents to the recordation thereof. Dated , 2010 ARROYO GRANDE REDEVELOPMENT AGENCY, a public body, corporate and politic Lon ATTEST: Kelly Wetmore, Agency Secretary STATE OF CALIFORNIA COUNTY OF SAN LUIS OBISPO Tony Ferrara, Agency Chair On , before me, , (insert name and title of the officer Notary Public, personally appeared TONY FE 1 1 A, who proved to nee on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY und the laves of the State of California that the foregoing paragraph is true and correct. WITLESS nay hand and official seal. Signature 1092172.03 a 119/10 (Seal) Agenda Item 8.g. Page 21 THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item 8.g. Page 22 R A. INCORPORATED 7. `Y 10. 1011 MEMORANDUM 1F T: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER SUBJECT; CONSIDERATION OF RESPONSE TO THE SAN LUIS OBISPO COUNTY GRAND JURY REPORT RT N LEAF BLOWER ER HAZARDS DATE: JUNE 22, 201 RECOMMENDATION: It is recommended the city Council: 1 direct staff not -to prepare an Ordinance at this time prohibiting two -cycle gasoline powered leaf blowers and restricting days and hours of operation allured for leaf blower use; and 2 approve the attached response to the San Luis Obispo County Jury Report on leaf blower hazards. FINANCIAL IMPACT: There is no financial impact from the recommended action. If the City Council directs staff to prepare an Ordinance, there may be costs involved in order to effectively enforce the provisions of the Ordinance, as well as replacement of City -owned leaf lowe BACKGROUND: On April 27, 2010, the City received a copy of the attached report prepared by the San Luis Obispo County Grand .Jury titled "Leaf Blower Hazards in San Luis Obispo County." The report makes the following recommendations: 1. The San Luis Obispo County Board of Supervisors pass an ordinance calling for a gradual two year phase -out of all two -cycle gasoline powered leaf blowers within San Luis Obispo County. 2. The San Luis Obispo County Board of supervisors adopt the same guidelines currently in effect within the City of San Luis Obispo for the restriction of days and hours of operation allowed for leaf blower use. 3. Each incorporated city within San Luis Obispo county adopt a parallel ordinance to ensure consistency throughout the county. Agenda Item 8.h. Page 1 CITY COUNCIUREDEVELOPMENT AGENCY BOARD OF DIRECTORS CONSIDERATION OF RESPONSE TO THE SAN LUIS OBISPO COUNTY GRAND JURY REPORT ON LEAF BLOWER HAZARDS JUNE 22, 2010 PAGE 2 The report also specifically requires the City Council to submit a response to Recommendation mendation #3 to the Presiding .Judge of the San Luis Obispo Superior Court by July 29, 2010. The City does not currently have in place regulations that directly addressing leaf blowers. Municipal Code Chapter 9.16 does provide general noise restrictions. However, Section 9.1 .030 specifies that standards of Chapter 9.16. do not apply to "noise sources associated with the routine maintenance of a residential, commercial, industrial, or publ ic/ q uasi-public property provided that such maintenance activities take place between the hours of 7:00 a.m. and 10:00 p.m. I? ANALYSIS of ISSUES: The Grand Jury report concluded that gasoline leaf blowers create health hazards from emissions and tonic exhaust fumes, fugitive dust emissions, and high noise levels. The report states that rakes and brooms are quiet alternatives. In situations where a power blower is absolutely necessary, the report recommends use of electric models. Staff recommends the City not adopt new regulations regarding leaf blowers at this time for the following reasons: 0 No complaints have been received by the City regarding noise disturbances from leaf blowers. 0 Staff does not believe that rakes and brooms are normally effective alternatives to leaf blowers and while electric models are preferable, they are not always feasible to use given electricity and extension cords required. Restricting leaf blowers may encourage more individuals to utilize hoses to clean driveways and other areas, which would increase water use. Leaf blower regulations would be difficult to enforce, particularly given very limited availability of code enforcement staff. 0 According to the report, the San Luis Obispo County Air Pollution Control District (APCD)is actively developing a multi- pollutant clean air plan, which is scheduled to be presented to the San Luis Obispo County Board of supervisors in December 2010. Therefore, staff believes any consideration of leaf blower regulations should wait until recommendations are provided by the APC , which is the primary agency responsible for achieving clear air standards. Staff has contacted other cities in the County. No cities indicated that they were planning on recommending adoption of a leaf blower ordinance in response to the Grand Jury recommendations. Agenda Item 8.h. Page 2 CITY COUNCIUREDEVELOPMENT AGENCY BOARD OF DIRECTORS CONSIDERATION OF RESPONSE TO THE SAN LUIS OBISPO COUNTY GRAND JURY REPORT ON LEAF BLOWER HAZARDS JUNE 22, 2010 PAGE 3 ALTERNATIVES: The following alternatives are provided for the Council's consideration: Approve staff's recommendations, - Direct staff~ to prepare an Ordinance requiring a two -year phase -out of all two- cycle gasoline powered leaf bl and establishing stricter restrictions o n days and hours o f operation allowed for leaf blower use; Provide other direction to staff. ADVANTAGES: No action at this time will enable the continued convenience of use of leaf blowers, avoid the expense f replacement of existing leaf blowers, avoid the problems and costs of enforcement of new restrictions, and pr the APCD time to develop comprehensive recommendations addressing overall compliance with clean air standards. DISADVANTAGES: Staffs recommendations will not be effective in addressing health hazards cited in the Grand Jury report.. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The agenda was posted in front o f City Hall on Thursday, ,June 1, 2010 and on the City's website on Friday, .June 11, 2010. No public comments were received. Attachments: 1 . San Luis Obispo County Grand .Jury Report rt titled: "Leaf Blower Hazards in San Luis Obispo County 2. Recommended City Council response to the San Luis Obispo Grand Jury Report Agenda Item 8.h. Page 3 TTAC H E H T I LEAF BLOWER HAZARDS IN SAN LUIS OBISPO COUNTY SUMMARY The use of two -cycle gasoline engine leaf blowers in the cities and unincorporated areas of San Luis Obispo County presents a health hazard to all citizens. The hazards are four -fold: All gasoline Powered leaf blowers create emissions and toxic exhaust fumes. However, two -cycle leaf blowers pollute more and are the loudest. .exhaust pollution from a typical gas powered leaf blower over one hour is equal to one ear driven 200 miles in a confined area. The high - velocity air jets used in blowing leaves move more than just leaves. The particulate matter PM swept into the air includes many unwanted and toxic elements. Various pollutants include dust, pesticides, chemicals, fertilizers, fungi, street dirt and fecal matter. Approximately five pounds of PM per leaf blower per hour are blown into the air and can take hours or even days to settle. Two -cycle leaf blowers generate unhealthy high noise levels. Two-cycle leaf blowers generate a decibel level that can cause permanent hearing lass to the operator and an annoyance to anyone nearby. 2009 -2010 San Luis Obispo Grand Jury Page 1 Agenda Item 8.h. Page 4 Unaware citizens, including the most vulnerable in our county such as the young,, homebound and seniors frequently rust endure the localized air and noise pollution of two -cycle leaf blowers. Considering the evidence, the Grand Jury concluded the health hazards residents are exposed to from two -cycle leaf blowers outweigh the possible benefit they provide. The Grand ,fury recommends that the San Luis Obispo County Board of Supervisors and all incorporated cities initiate a gradual phase -out of two -cycle gasoline powered leaf blowers for landscape and cleanup operations. INTRODUCTION AND PURPOSE The purpose of this report was to assess the health hazards caused by leaf blowers within San Luis Obispo County. The Grand ,fury assessed air and noise pollution caused by leaf glowers in public, commercial and residential uses. Three types of leaf blowers were reviewed: two cycle, four cycle and electric. This report will summarize the findings of this assessment, along with recommendations ations for actions to reduce health hazards presented by leaf blowers. If the recommendations are implemented, the quality of life for the citizens of San Luis Obispo County could improve without causing undue hardship. METHOD/PROCEDURE Interviews were conducted with staff of the San Luis Obispo County Air Pollution Control District APC , the San Luis Obispo County Department of Planning and Building and its Code Enforcement Division. The Grand .fury reviewed written materials from various sources, including: • U.S. Environmental Protection Agency (EPA) 0 California Air Resources Board (CARB) California State Assembly Bill 2: Global warning Solutions Act of 2006 0 Municipal codes within San Luis Obispo County 2009 -2010 San Luis Obispo Grand .fury Page 2 Agenda Item 8.h. Page 5 California Landscape Contractors Association • Consumer Reports Magazine and various other news sources • American Speech- Language - Hearing Association NARRATIVE Leaf blowers were introduced to the United States in the 1970s. Drought conditions in California precipitated acceptance of the blowers as a water saving clean -up option in lawn and garden maintenance. Soon after leaf blowers were introduced, complaints regarding noise and air pollution began, leading to restrictive ordinances or complete bans. There are three types of portable leaf blowers in common rise: gas powered with either a two or four - cycle engine are electric powered. All have practical applications, as well as contributing to environmental hazards in varying degrees. Description of Hazards Exhaust Emissions: Exhaust erni.s wns are those emissions generated from the incomplete combustion o fuel in an engine. Small, two -cycle gasoline engines have traditionally powered most leaf blowers. They are inexpensive, lightweight, operate in any position and generate a relatively large amount of power. A major disadvantage, however, is the high exhaust emissions due to the required mixing of fuel and oil that are inefficiently burned in the combustion chamber leading to as much as 0 of the fuel/oil mixture being exhausted unburned. According to the U.S. Environmental Protection Agency, a typical leaf blower generates as much emission in one hour as an automobile does while traveling over 200 miles., with the major difference being the leaf blower emits the pollution in a much smaller radius. The resulting major pollutants are oil - based particulates, hydrocarbons and carbon monoxide. Some of the hydrocarbons in fuel and combustion by-prod are toxic air contaminants, including benzene, 1, -butadiene, acetaldehyde and formaldehyde. .o -2010 San Luis Obispo Grand Jury Page Agenda Item 8.h. Page 6 Four -cycle leaf blowers emit significantly lower emissions than two -cycle leaf blowers, with lower levels of hydrocarbons and particulate matter. Electric blowers have the advantage of not requiring fuel or oil, thus, there are no exhaust emissions. Fugifive.Dust Emissions ins Besides the intended purpose of moving leaves, grass and other garden debris, blowers cause sidewalk and roadway dust to become airborne (fugitive dust. Varying by make and model, leaf blowers move air at 150 to 280 miles per hour. As a comparison, a Category 5 hurricane is defined as wind speed of 156+ miles per hour. Fugitive dust may contain pollen, animal fecal matter, herbicide and pesticide residues, fungi, spores and street dirt containing tire rubber, heavy metals and organic and elemental carbon. Especially harmful are the particulate matter PIS in fugitive dust that are small enough to be inhaled (defined as particles smaller than 1.0 micrometers). PM from fugitive dust cloud emissions can linger in the air from minutes to as long as a week, depending on PM size and local conditions. Noise Emissions: Noise is the general term for sound that is perceived as disagreeable and unwanted. High intensity, high frequency sounds are the most damaging to the ear and usually identified as the most annoying. The noise emitted from deaf blowers eontains a significant amount of high intensity and high frequency emissions. In a quiet neighborhood, there are no natural sources of sound at these same frequencies. Therefore, the sounds are not easily masked and are more noticeable, contributing to a high level of annoyance perceived by bystanders. Noise levels from. leaf blowers are measured in decibels (dBA) and usually are manufacturer- reported lever that represent exposure of a bystander at 50 feet from the blower. Sound levels are estimated to range from 62 to 75 d A. The difference in 62 versus 75 dl A is roughly 100 dines the sound intensity and is perceived by a bystander as significantly louder. The d A for the operator of a two -cycle blower is estimated to range from 87 to 101 d A.. Sounds louder than 80 dlA are considered potentially dangerous. Both the amount of noise and the length of time of exposure determine the amount of potential damage to hearing. Hair cells of the inner ear and the hearing nerves can be permanently damaged by an intense beef impulse, like an explosion, or by continuous or repeated exposure to noise. 2009 -2010 San Luis obIspo Grand .fury Page Agenda Item 8.h. Page 7 The regulation of leaf blowers in California cities and counties typically is based on noise emissions standards and falls into the categories of time of the day, days of the week and dBA limits. Under current San Luis Obispo County code, noise from leaf blowers is not permitted to exceed 70 dBA between the hours of 7 a.m. to 10 p.m., and 65 dBA between the hours of 1 p.m. and 7 a.m. The City of San Luis Obispo has more stringent restrictions including the ban of gasoline powered blowers anytime on Sundays, and limiting the use of any purer blower on other days of the week to between the hours of 8 a.m. and 6 p.m. in residential zones, and 7 a.m. and 6 p.m. in non - residential zones. An interview conducted with a San Luis Obispo County Code Enforcement official revealed that current noise ordinances are not practical to enforce, and in fact, are never enforced with regards to leaf blowers. For code enforcement to issue a violation of current noise codes, the officer would need to actually witness a violation and be able to verify a blower exceeded dl A limits. However, use of a specific type of blower that is banned would be clearly observable, and therefore, more easily enforceable. Health Effects Particulate Matter is inhalable and able to deposit on the lungs' airway surfaces. Smaller particles, 2.5 micrometers or less, are male to penetrate deep into lung tissue. Exposure to PM has been linked to higher hospital admissions and respiratory ailments. Carbon monoxide (CO) is a product of incomplete combustion of carbon containing fuels. CO in the air can be absorbed from the lungs into the bloodstream, and in significant levels can reduce oxygen to body tissues. Risk groups for ambient CO include the elderly, pregnant women, infants, those with anemia, respiratory diseases and heart disuse with exercise- induced angina. Benzene from burned and unburned fuel is a known carcinogen and depresses the central nervous system. Formaldehyde, acetaldehyde and. 1,3-butadiene also have been .identified as probable carcinogens and acute exposure may lead to eye, skin and respiratory tract irritation. 2009 -2010 San Luis Obispo Grand Jury Page Agenda Item 8.h. Page 8 Leaf blowers emit substantial hydrocarbons, primarily from. unburned fuel., that can react with nitrogen dioxide to form ozone. ozone is a known irritant, with exposures of as little as one hour causing constriction of airways, coughing, shortness of breath and worsening of respiratory diseases such as emphysema, bronchitis and asthma. Over time, permanent damage and decreased lung capacity from repeated exposure can occur. There is a direct relationship between repeated exposure to excessive noise and hearing loss. Noise induced stimulation of the autonomic nervous system has been linked to high blood pressure, headaches and cardiovascular disease. Noise acts as a biological strsor that can trigger a "fight or flight'' response, causing stress and anxiety. Excessive noise also interferes with communication, disrupts sleep, impairs concentration and generally causes community annoyance. Alternatives Rakes and brooms are quiet alternatives to leaf blowers and consume no resources. They emit minimal dust and debris into the air and do not release pollutants from exhaust emissions. Rakes and brooms are efficient and almost as fast as power blowers. After banning the use of leaf blowers in 1990, the City of Claremont, California calculated that the increase in workload using rakes and brooms was only 6 percent more than with the use of blowers in the maintenance of city property. This calculation did not include the time for maintenance and fuel /oil mixing for the blowers. other cities found similar results. In situations where a power blower is absolutely necessary, testing has shown that electric models, while generating less noise, have out - performed gasoline fueled competitors with comparable power. The quietest and least polluting type of leaf blower is electric and most owners and reviewers say an electric leaf blower will suit homeowners very well. electric blowers are also easier to maintain. while exhaust emissions are eliminated, fugitive dust and M pollution are still an issue. 2009 -2010 San Luis ON. spo Grand Jury Page Agenda Item 8.h. Page 9 In cases where hand raking or an electric blower is not feasible, newer four -cycle gasoline fueled blowers are preferable due to their reduced exhaust emissions and noise. Experts recommend reserving use of gasoline - powered blowers to work areas farther than a 150-foot extension cord can reach, or where a power cord is not practical. Compliance in Cities Banning Leaf Blowers Over 300 cities nationwide have banned or restricted leaf blowers including more than 100 municipalities in California. Examples include: 1. The City of Santa Barbara banned all gasoline powered leaf blowers in 1997. Electric powered leaf blowers are allowed, but may not be used within 250 feet of a residential zone and must be certified to meet a dBA level of no more than 65. The parks department incurred a one -time cost of $90,000 (out of a budget of $4 million ) to replace equipment and has seen no additional impact on city cleanup in regards to time or cost. 2. The City of Cannel banned leaf blowers in 1974, becoming the first city in the nation to impose leaf blower restrictions. 3. The City of Los Angeles (population 3.6 million) banned leaf blowers in 1998. Air Quality Legislation California Mate Assembly Bill 32 AB 2 , the Global warming Solutions Act of 2006, is a statewide effort enacted to reduce environmental ensions leading to greenhouse gasps. AB2 requires the California Air Quality Board C.AIB to adopt regulations by 2011 that will achieve technologically feasible and cost - effective reductions in greenhouse gases. At a local level, the San Luis Obispo County Air Pollution Control District APCD is the primary agency responsible for achieving the clean air standards established by the CARB. The APCD is actively developing a multi - pollutant clean air plan which is scheduled to be presented to the San Luis Obispo County Board of Supervisors in December 2010. Currently, the APCD does not have jurisdiction over mobile consumer devices such as leaf blowers, but can make recommendations to the Board of Supervisors and incorporated cities. Any change to leaf blower regulations within San Luis Obispo County would be the task of the County .Board of Supervisors and city councils. 2009 -20 1. 0 San Luis Obi spo Grand Jury Page Agenda Item 8.h. Page 10 FINDINGS It is the finding of the Grand Jury that leaf blowers can cause preventable health hazards to the citizens of San Luis Obispo County. 1. Gasoline- powered leaf blowers, particularly two -cycle models, create exhaust emissions containing carbon monoxide, hydrocarbons and other harmful particulate matter. The resulting pollution from one leaf blower operated for one hour is approximately equivalent to one ear being driven Zoo miles. .. All leaf blowers create fugitive dust drifts containing harmful chemicals, fungi., fecal utter and harp ful particulate matter that can linger in the air for hours. 3. Leaf blowers, two -cycle models being the loudest, generate high intensity and high frequency noise that can lead to operator hearing loss, as well as multiple harmful physiological and psychological responses to the operator or bystanders. Current county noise ordinances are limited to decibel level violations that are unenforceable in practice. A specific ban on two -cycle leaf blowers would be an effective and enforceable ordinance. 4. California Assembly Bill 32 of 2006 mandates reduction of harmful greenhouse emissions. San Luis Obispo County must adopt measures to meet emission reduction requirements. 5. It has been demonstrated manual rake or broom cleanup is nearly as time efficient and effective as leaf blowers, without causing harmful air or noise hazards. when a leaf blower is necessary, an electric model is the preferred option due to no exhaust emissions. Four -cycle gasoline powered leaf blowers should be limited to areas of greater than 150 feet from an electric power source, or when a power source is not available. 2009 - o 1. 0 San Luis Obispo Grand Jury Page 8 Agenda Item 8.h. Page I I RECOMMENDATIONS Based on these findings, the Grand Jury recommends that. 1. The San Luis Obispo County. Board of Supervisors pass an ordinance calling for gradual two year phase -out of all two -cycle gasoline powered leaf blowers within San Luis Obispo County. 2. The San Luis Obispo County Board of Supervisors adopt the same guidelines currently in effect within the City of San Luis Obispo for the restriction of days and lours of operation allowed for leaf blower use. 3. Each m orporated city within San Luis Obispo County adopt a parallel ordinance to ensure consistency throughout the county. REQUIRED RESPONSES The San Luis Obispo Board of Supervisors is required to respond to Recommendations 1 and 2. The responses shall be submitted to the Presiding Judge of the San Luis Obispo Superior Court by July 29, 2010. Please provide a copy of all responses to the Grand Jury a s well. The Atas adero City Council is required to respond toRecommendation 3. The response shall be submitted to the Presiding Judge of the San Luis Obispo Superior Court by ,duly 2, 2010. Please provide a copy of all responses to the Grand Jury as well. The Arroyo Grande City Council is required to respond to Recommendation 3. The response shall be submitted to the Presiding Judge of the San Luis Obispo Superior Court by July 29, 2010. Please provide a copy of all responses to the Grand Jury as well. The Grover Beach City Council is required to respond to ee mnrnendation 3. The response shall be submitted to the Presiding ,lucre of the San Luis Obispo Superior Court by ,duly 29, 2010. Phase provide a copy of all responses to the Grand Jury as ell. 2009 -201.0 San Luis Obispo Grand. Jury Page Agenda Item 8.h. Page 12 The Morro Bay City Council is required to respond to Recommendation 3. The response shall be submitted to the Presiding Judge of the San Luis Obispo Superior court by ,duly 29, 2010. Please provide a copy of all responses to the Grand Jury as well. The Paso Robles City C ouncil is required to respond t o R ecommendation 3. The response shall be submitted to the Presiding Judge of the San Luis Obispo Superior Court by July 29, 2010. Please provide a copy of all responses to the Grand Jury as well. The Pismo Beach City Council is required to respond to ecomm ndation 3. The response shall be submitted to the Presiding Judge of the San Luis Obispo Superior Court by July 29 2 010. Please provide a copy of all .responses to the Grand Jury as well. The San Luis Obispo City Council is required to respond to Recommendation 3. The response shall be submitted to the Presiding Judge of the San Luis Obispo Superior Court by July 29 2 010. Please provide a copy of all responses to the Grand Jury as well. The nailing addresses for delivery are: Presiding J u dge Gra gor Presiding Jude Ch arles S. Cranda San Luis Obispo County .rand Jury �u eor court of California p P. lox 491 1 M ont ere y Street S an Luis Obispo, CA 93408 San Luis his CA 93402 p 2009 - 2010 San Luis Obispo Grand Jury Page 10 Agenda Item 8.h. Page 13 BIBLIOGRAPHY 1.. California Environmental Protection Agency .Air Resources Board. {February 2002). report to the California Legislature on the potential health and environmental impacts o leaf blowers. htt p f 2. United States Environmental Pr to tl n Agency. http://www.epa. 3. California ,Air Resources Board, AB 32 Fact Sheet — California Global Warming Solutions Act of 2006 4. American Speech-Language-Hearing Association, Noise and hearing loss. htt : Hwww, sha.or ubli lheari.n di 5. San Luis Obispo County Air Pollution Control .District. (November 16, 2005), Options for addressing climate change in Sari Luis Obispo County. Interviews with staff' and official web site information. http://www. 6. Consumer Reports Magazine. September 2007). Power blower, more punch for plug- ins. 7. Consumer Search, (September 2009). Leaf blower: Full report, httl2://www.consumersearch.conVleaf-blowers/revi 8. Orange County Grand Jury. 1999). Leaf blower pollution hazards in orange County. http://www.ocgEandj dfs/leafblow.pdf 9. City of San Luis Obispo pamphlet. Using power blowers in San Luis Obispo. A .short course in power blower laws and etiquette. 1, San Luis Obispo County. General plan elements and ordinances. ht!V 11. Hayes, Virginia. (October 23, 2008), Leaf blowers" legacy. Santa Barbara Independent. ht!p-://www.independent.com/news/2008/oct/23/leaf-blowers-I e 12. Cafif mla Landscape Contractors Association. (March 1999). CLCA position on le af blowers. httl2://www.cica.org/clea/about/leaf blowers.php 13. Zero Air Pollution web site. http://www.zapla.oriz 2009 -2010 San Luis Obispo Grand Jury Page 1 l Agenda Item 8.h. Page 14 June.2 , 2010 Presiding Judge Charles S. Crandall Superior Court of California 1050 Monterey Street San Luis Obispo,. CA 93408 Dear Honorable Judge Crandall: ATTACHMENT P.O. Box 550 214 East Branch Street Arroyo Grande, CA 93421 Phone: (805) 473 -5404 FAX: {805} 473 -0386 E -1 loll: agcity@arroyog rande.ar On behalf of the City of Arroyo Grande, thank you for the information provided by the Grand Jury in the report titled: "Leaf Blower Hazards in San Luis Obispo" and the opportunity to resp ond to the findings and recommendations. mendations. After the Council reviewed the report and staff's analysis at its June 22, 201 o meeting, it was deeded not to ur ue adoption of an ordinance regulating leaf blowers at this time as recommended by the Grand Jury. A number of concerns were considered in arriving at this conclusion. I No complaints have been received by the City regarding noise disturbances from leaf blowers. The City questions the reports findings that rakes and brooms are normally ty effective alternatives to leaf blowers. While the City agrees that electric models are r not always feasible to use given electricity and extension cords preferabl they a y g t. required. The City is currently working on addressing serious water supply issues. It is feared that restrictin g leaf blowers may encourage more individuals to utilize hoses to clean driver increase. s and other areas, which ould water use. Leaf blower regulations would be difficult to enforce, particularly given very limited availability of City g code enforcement staff. Furthermore, according to the report, the San Luis Obispo County ir Pollution Control District (APCD) i s actively developing a multi- pollutant t clean air plan, which is scheduled to be presented to the San Luis Obispo County Board of ery Su p isors in December 2010. Therefore, the City believes any consideration of leaf blo wer regulations should wait until recommendations are provided by the APCD, which is the primary agency responsible for achieving clear air standards. Please let ups' know if y ou have questions or would like any additional information. Sincerely, Tony Ferrara Mayor Agenda Item 8.h. Page 15 THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item 8.h. Page 16 R O GN INCORPORATE 7. imy ro. tell ,, MEMORANDUM 41 F ft T: CITY COUNCIL FROM: : STEVEN ADAMS, CITY MANAGER SUBJECT: CONSIDERATION OF BALLOT MEASURES FOR APPOINTIVE CITY CLERK AND CITY TREASURER DATE: .JUNE 22, 2010 RECOMMENDATION: It is recommended the City Council: 1 adopt a Resolution ordering the submission to the qualified voters of the City measures relating to the City clerk and City Treasurer positions at the General Municipal Election to be held on Tuesday, November 2, 2010, as called by Resolution I .4282; 2 adopt a Resolution setting priorities for filing written arguments for City measures and directing the City Attorney to prepare an impartial analysis; 3 adopt a resolution providing for the filing of rebuttal arguments for City measures submitted at municipal elections; approve ballot arguments; approve the attached response to the San Luis Obispo County Grand Jury Report: "Electing City Treasurers and Clerks: Wise o r Otherwise?"; and appropriate $3,000 from the City's General Fund Balance for membership o the City Treasurer and Director of Administrative Services in the California Municipal Treasurers Association CMTA and to attend a -day training class in September in response to recommendations of the Gra nd Jury. FINANCIAL IMPACT: Anappropriation of $11,000 to fund the November 2, 2010 General Municipal Election has been app roved in the Legislative and Information Services FY 2010-11 Budget. There will be some additional cost to the City to place the two measures on the ballot. However, staff believes it can likely be funded from the current amount budgeted for the November 2, 2010 election. Future savings from making the positions appointive could exceed $34,000 per year in benefit costs when compared to elected positions held by individuals not in other full -tune positions. Membership in CMTA and training provided by the organization will result in a cost to the City of $3,000. Agenda Item 10.a. Page 1 CITY COUNCIL CONSIDERATION OF BALLOT MEASURES FOR APPOINTIVE CITY CLERK AND CITY TREASURER JUNE 22, 2010 PAGE 2 BACKGROUND: At the June 8, 2010 meeting, staff presented recommendations to place measures on the ballot to make the City Clerk and City Treasurer positions appointive rather than elected, along with draft measures and ballot arguments. The city Council directed staff to proceed to place the items on the June 22, 2010 agenda for consideration. The City Clerk and City Treasurer positions have been elected since the City was incorporated in 1911. The City Treasurer position receives a monthly stipend of $5 and the City Clerk position a $28 monthly stipend. Both positions also receive medical benefits, which can result in a cost of up to approximately $17,000 per year for each position. Government Code Section 80008 authorizes the City Council to submit to the voters the question of whether or not to make these positions appointive. The basic statutory responsibilities of the City Clerk as enumerated in Government Code Sections 40801 -40814 (copy attached) include keeping accurate records of legislative proceedings, maintaining financial records, keeping an accurate boob of ordinances, administering oaths and acting as custodian of the city seal. The city Treasurer's basic statutory responsibilities are set forth in Government Code Section 41001-41007 (copy attached) and include receiving and handling all public funds, and providing written reports of the City's financial records. The trend of cities throughout the State has been to convert to the use of appointive rather than elected City Clerks and City Treasurers. Staff researched this issue and found than out of the 480 cities in California, 348 have an appointed City Clerk 2.% and 807 have an appointed City Treasurer (64%). The City previously placed a measure on the ballot in 1998 that would have made the City Clerk and city Treasurer positions appointive. Ho wever, it failed by a vote of 41% to 89 %. The t ra1 'ori of the Arroyo Grande City Clerk's statutory responsibilities are being p erformed by the Director of Legislature and Information Services. As a result, the elected City clerk position has become largely ceremonial. This is not readily apparent i since Kell i Wetmore serves n both positions. Payroll Clerk Michelle Mayfield the City's current City Treasurer, but most of the Treasurers statutory responsibilities are being p erformed by Angela Kraetsch, the Director of Administrative Services. Staffs research indicated that many cities still utilizing an elected City Treasurer and/or City Clerk have taken similar actions. At the May 27 2008 meeting, staff presented a number of cost sawing measures to address the projected FY 2008 -09 budget shortfall at that tune. One item presented was concurrence by Michelle Mayfield to run for the City Treasurer position, which Agenda Item 10.a. Page 2 CITY COUNCIL CONSIDERATION OF BALLOT MEASURES FOR APPOINTIVE CITY CLERK AND CITY TREASURER JUNE 22, 2010 PAGE 3 eliminated the need to pay for separate medical benefits provided to this position at that time. Staff recommended a ballot measure be prepared for the November 2, 201 election to permanently address this issue by asking the electorate to make both positions appointive rather than elective. ANALYSIS OF ISSUES: Since full -tune City employees currently serve in both of these positions, there is net an existing problem. However, staff believes converting these positions to appointive is important to avoid potential problems in the future. These positions require individuals to be current and well versed with highly technical professional standards, laws and regulations, and management systems. Therefore, when the positions become vacant at some point in the future, it will likely be difficult to find qualified individuals available to run for these positions in a small community the size of Arroyo Grande. Many cities have changed to appointed city Clerks and City Treasurers because they have experienced a reluctance of any individuals even willing to run for the positions. Under State laver, the only qualifications needed to serge in these elected positions are to be 18 years of age and a resident and registered voter of the City. The City is prohibited from establishing any other requirements. The City Clerk's role has expanded and evolved over time and is far more involved and complex than the basic duties set forth in the Government Code. The position has become very technical and requires a high level of expertise, training and certifications. The City Clerk serves as the elections official, legislative administrator and records ,manager. The position administers Federal, State and Local procedures through which local government representatives are elected, assisting candidates in meeting their legal responsibilities before, during and after an election. The city Clerk is also responsible for processing initiative and referendum petitions. In depth knowledge and a thorough understanding of the Elections Code and Government Code, including provisions of the Political Reform Act, the Brown Act and the Public Records Act are essential. The City Clerk is responsible for agenda preparation and publication, preparation and publication of legal notices, attends and performs essential functions at City Council meetings, and records decisions of the legislative body including preparing and maintaining minutes, ordinances, resolutions and proclamations. The City Clerk also officiates at public works bid openings. It is the City Clerk's responsibility to oversee the preservation and protection of the public record and ensure that ,municipal records are accessible to the public. This includes knowledge of legal requirements for records retention, the management of document imaging systems and computer databases. A number of other responsibilities have been assigned to the position in Arroyo Grande to address specialized organizational needs. Agenda Item 10.a. Page 3 CITY COUNCIL CONSIDERATION ATION of BALLOT MEASURES FOR APPOINTIVE CITY CLERK AND CITY TREASURER EF ,JUNE 22, 2010 PAGE Similarly, the lags, regulations and managements systems required to successfully carry Out the responsibilities of the City Treasurer have evolved over tire. While all statutory responsibilities of the City Treasurer have been performed by the Director of Administrative Services for many years, someone elected to the position in the future could choose to assume the responsibilities set forth in the Government Code. This could result in severe consequences to the City's finances and limited resources if the individual was not properly qualified. These positions should not be "political" since they have no policy making authority. City Clerks who are trained through the International Institute of (Municipal Clerks pledge to abide by a professional code of ethics that requi them to remain neutral, impartial, to remain above reproach and to merit public confidence. As noted, State law authorizes the City Council to place on the ballet the question whether the City Clerk and City Treasurer positions should be made appointive. If a majority of voters approve making the positions appointive, Government Code Section 34856 also provides that the City Council can, by ordinance, delegate its appointment authority to the City [Manager. This is also recommended for a number of reasons: 1 It would match the City's organizational structure with current practice and ensure it continues in the future, which staff believes is working well. Melly Wetmore would continue as the Director of Legislative and Information Services /City Clerk. Director of Administrative services Angela Kraetsch, who currently performs the majority of the treasurer's responsibilities, would also be designated as the City Treasurer. Both positions would continue to report to the City Manager. If a vacancy occurred in the future, the same selection process used for other director positions would be used to ensure a qualified candidate is hired to fill the position. 2 Since the City Clerk position is responsible for coordinating election activities and processing recall and referend petitions, potential conflict situations that can occur when the City Clerk is appointed by the City Council would be avoided. 3 It mould help attract the most qualified candidates when vacancies occur because potential candidates may be deterred from applying when the positions are appointed by a Council due to concerns of professional instability that could result from reporting directly to a political body. 4 Supervision and performance evaluation would be provided most effectively since most day to day direction and oversight is provided by the City Manager. Agenda Item 10.a. Page 4 CITY COUNCIL CONSIDERATION OF BALLOT MEASURES FOR APPOINTIVE CITY CLERK AND CITY TREASURER JUNE 22 2010 PAGE 5 The other sic cities in the County, address these positions as follows: Atascadero. Grover Beach Morro Bay Paso Robles Pismo Beach Ban Luis Obispo Elected City Clerk appointed by City appointed by the City Council Appointed by City Manager Elected Appointed by City Manager Appointed by City Mana Manager/ City Treasurer Of particular Mote, the City of Sari Luis Obispo recently transferred appointment of the City Clerk from the City Council to the City Manager through a Charter Amendment measure on the ballot. The San Luis Obispo County Grand Try recently released a report titled "Electing City Treasurers and Clerks: Wise o O therwise? A copy of the report is attached, which states the following: There are reasons to be especially concerned about the practice of electing city treasurers. Any citizen who is a resident of the city can run for the office, without hou possessing any particular qualifications. if a candidate with an agenda markedly at odds with the city council and city manager -- one with little commitment to professional investing, for example were to win, many millions of city dollars could be at risk or, alternatively, tied cep in a dispute over power. State law gives the treasurer sup rvisoriai and monitoring powers over the city's finances. The report further states that `health benefits alone may be sufficient to attract unqualified persons to run for the job, leaving the work to city staff and costing the cities health benefits for persons performing no useful function." The Grand Flury recommended than "city councils in Arroyo Grande, Atascadero and Paso Nobles should consider trying again to convince the electorate to make at least the position of treasurer appointive, while educating the electorate about qualifications needed in a treasurer and committing the city to require appointed treasurers to possess those qualifications." The Grand Jury report also requested the City Council respond to six recommendations made in the report by duly 29, 2010, which include the following: '1. Given state la, city councils should inane sure that their investment policies are as air tight as possible and assure that those policies are carefully and continually followed to eliminate the potential for an elected treasurer to misuse his or her pourers. Agenda Item 10.a. Page 5 CITY COUNCIL CONSIDERATION OF BALLOT MEASURES FOR APPOINTIVE CITY CLERK AND CITY TREASURER JUNE 22 2010 PAGE 6 2. city councils and city managers should require that their functioning treasurers and city clerks, whether elected, appointed or deputized, provide all reports required of those offices at the time designated by laver. 3. Financial reports, and backup documents recording changes in investments, should be carefully scrutinized by a council member on a monthly basis. 4. City councils in Arroyo Grand Atascadero and Paso Robles should consider trying again to convince the electorate about qualifications needed in a treasurer and committing the city to required a ppointed treasurers to possess those qualifications. 5. All general law cities in the county should post the state - required monthly treasurer's report and annual financial statement on the city's web site in a location easy to find. 6 Arroyo Grande should, at a minimum, send its elected treasurer to a training session where she can learn the responsibilities she is delegating. A copy of the proposed response is attached for City Council consideration. Staff is recommending funding be appropriated by City Council for CM TA membership and training that will help address the last recommendation. Attached is a Resolution that would place two separate measures on the ballot of the November 2, 2010 election — one to make the City Clerk appointive and one to make the City Treasurer appointive. Proposed ballot arguments for each measure are attached. Resolutions are also attached for setting priorities for filing written arguments for City measures, directing the City Attorney to pre an impartial analysis, and providing for the filing of rebuttal arguments for City measures submitted at municipal elections. ALTERNATIVES: The following alternatives are provided for the Council's consideration; Approve staffs recommendations; Direct staff to make modifications and reconsider at the June 13, 2010 meeting; - Do not approve placing the measures on the ballot; Provide direction to staff. ADVANTAGES: Making the positions appointive will help ensure the City is able to appoint individuals to the positions of City Clerk and City Treasurer that possess the necessary qualifications and expertise to perform their respective duties effectively. It would eliminate the potential for individuals to be elected to these positions that demand to assume responsibilities that they are unqualified to perform, which could cause serious problems for the City. It would eliminate the need in the future for the City to provide costly heath insurance benefits to individuals searing in ceremonial positions that perform few, if any, Agenda Item 10.a. Page 6 CITY COUNCIL CONSIDERATION ATION OF BALLOT MEASURES FOR APPOINTIVE CITY CLERK AND CITY TREASURER JUNE 229 010 PAGE 7 responsibilities. Lastly, it would help remove these positions from p liti arl pressures in performing their responsibilities. DISADVANTAGES: There is an additional cost to the City for placing the measures on the ballot. Some individuals may also feel that making the positions appointive would make them less accountable to the public, which staff does not believe should be an issue. ENVIRONMENTAL F EVI E: No environmental revie w is required for this item. PUBLIC NOTIFICATION' AND COMMENTS: The agenda was posted in front of City Hall on Thursday, .June 17 2010 and on the City's website on Friday, June 18, 2010. No public comments were received. Attachments: 1. Ballot Arguments 2. San Luis Obispo Counter Grand Jury Report "Electing City Treasurers and Clerks: Wise or Other rise?lr 3. Proposed response to Grand Jury Deport 4. Government Code sections 40801-40814 5. Government Code Sections 41001 -41007 Agenda Item 10.a. Page 7 RESOLUTION NO. R ESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DE OF DEF II G 'THE SUBMISSION ISSIO TO THE QUALIFIED V OTERS OF THE CITY MEASURES RELATING TO THE CITY CLERK AND CITY TREASURER F E POSITIONS AT THE GENERAL AL 11 U ICIPAL ELECTION TO BE HELD ON TUESDAY, NO 2, 2010, AS CALLED BY RESOLUTION 4282 WHEREAS, S, a General Municipal Election on November 2, 2010 has been called by Resolution No. 4282, adopted on June 8, 2010; and WHEREAS, S, the City Council also desires to submit to the voters at the election a question relating to the City Clerk's position and a question relating to the City Treasurer's position. NOW THEREFORE, BE IT RESOLVED, ED, that the City Council of the City of Arroyo Grande does resolve, declare, determine, and order as follows: SECTION 1. That the City Council,, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election the following question: CITY OF ARRO GRANDE MEASURE E � Yes Shall the office of City Clerk be appointive? N o SECTION 2. If the majority of the voters support this question, the City Clerk shall no longer be an elective official of the City of Arroyo Grande. From and after November 6,, 2012, or upon earlier vacancy in the office of the City Clerk, the City Clerk shall b appointed by the City Council. The City Clerk so appointed shell held office at the pleasure o f the City Council and, notwithstanding California Government Code section 30502 to the contrary, is not required to be a resident or elector in the City. The City Council may by ordinance vest in the City Manager its authority to appoint the City Clerk. SECTION 3. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election the following question: CITY OF ARROYO GRANDE MEASURE Yes Shall the office of City Treasurer be appointive? No Agenda Item 10.a. Page 8 RESOLUTION NO, PAGE 2 SECTION 4. If the majority of the voters support this question, the City Treasurer shall no longer be an elective official of the City of Arroyo Grande. From and after November 6 2012, or upon earlier vacancy in the office of the City Treasurer, the City Treasurer shall be appointed by the City Council. The City Treasurer so appointed shall held office at the pleasure of the City Council and, notwithstanding California Government Code Section 36502 to the contrary, is not required to be a resident or elector in the City. The City Council may by ordinance vest in the City Manager its authority to appoint the City Treasurer. SECTION 4. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by lair for holding municipal elections. SECTION 5. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form a nd manner as requ ired by lair. SECTION 6. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. On motion of Council Member , seconded by Council Member and on the following roll call vote; AYES: NOES: ABSENT: The foregoing Resolution lution a ras passed and adopted this day of # 201 . Agenda Item 10.a. Page 9 RESOLUTION NO. PAGE 3 TONY FERF AI A, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CAR EL, CITY ATTORNEY Agenda Item 10.a. Page 10 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE SETTING PRIORITIES ITIES FOR FILING WRITTEN ARGUMENTS REGARDING A TTY MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL N LI S I s WHEREAS, EAS, a General Municipal Election is to be held in the City of Arroyo Grande, California, on November 2 2010, at which there will be submitted to the voters the following measures: CITY OF ARROYO GRANDE MEASURE Yes Shall the office of City Clerk be appointive? No CITY OF ARROYO GRANDE MEASURE Yes Shall the office of City Treasurer be appointive? N NOW, THEREFORE E E IT RESOLVED LED by the City Council of the City of Arroyo Grande as follows: SECTION 1. That the City Council, being the legislative body of the City of Arroyo Grande, hereby authorizes ALL members of the City Council, to file written arguments in favor of the City measures not exceeding 300 words, accompanied by the printed names and signatures of the authors submitting it, in accordance with Article 4, Chapter 3 Division 9 of the Elections Code of the State of California, and to change the arguments until and including July 12, 2010, the date fixed by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk. SECTION 2. That the City Council directs the City Clerk to transmit copies of the measures to the City Attorney, unless the organization or salaries of the Office of the City Attorney are affected. The City Attorney shall prepare an impartial analysis of the measures sharing the effect of the measures o n the existing laver and the operation of the measures. If the measures affect the organization or salaries of the office of the City Attorney, the City Clerk shall prepare the impartial analysis. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments. Agenda Item 10.a. Page 11 RESOLUTION N0. PAGE 2 SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the look of original Resolutions. On motion by Council Member , seconded by Council Member , and on the following roll call Grote, to wit: AYES: NOES: ABSENT. the foregoing Resolution was passed and adopted this day of ..dune, 2010. Agenda Item 10.a. Page 12 RESOLUTION NO, PAGE 3 TONY FERRARA, MAYOR ATTEST: KELLY WETMOFEE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Agenda Item 10.a. Page 13 RESOLUTION TION i O. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR CITY MEASURES ES SUBMITTED AT MUNICIPAL ELECTIONS WHEREAS, section 9285 of the Elections Code of the State of California authorizes the City Council by majority vote, to adopt provisions to provide for the filing of rebuttal arguments for City measures submitted at municipal elections. NOW T THEREFORE, BE IT RESOLVED ED by the city council of the city of Arroyo Grande a follows: SECTION 1: That pursuant to section 9285 of the Elections code of the state of California, when the city clerk has selected the arguments for and against the measure which will be printed and distributed to the voters, the city clerk shall send a copy of a argument in favor of the measure to the authors of any argument against the measure, and a copy of an argument against the measure to the authors of any argument in favor of the measure immediately upon receiving the arguments. The author or a majority of the authors of an argument relating to a city measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. A rebuttal argument may not be signed by more than five authors. The rebuttal arguments shall be filed with the city cleric, signed, with the printed names and signatures of the author submitting it, or if submitted on behalf of an o rganization, the name of the organization, and the printed name and signature of at least one o f its principal officers, not more than 10 days after the final date for filing direct arguments. The rebuttal arguments shall be accompanied by the Form of statement To Be Filed By Author(s) of Argument. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut. SECTION 2. That all previous resolutions providing for the filing of rebuttal arguments for city measures are repealed. SECTION 3. That the provisions of section 1 shall apply only to the election to be held on November 2, 2010, and shall then be repealed. SECTION 4. That the city clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. On motion of Council Member , seconded by Council Member and on the following roll call vote, to wit: AYES; NOES: ABSENT: the foregoing Resolution was passed and adopted this � day of June, 2010. Agenda Item 10.a. Page 14 RESOLUTION NO. PAGE 2 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLEF APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARTEL, CITY ATTORNEY Agenda Item 10.a. Page 15 A TTAC HMENT 1 ARGUMENT IN F"OR of MEASURE Your "YES" vote on Measure � will convert the City clerk position from elected to appointed and is placed before the voters to ensure the city's operations continue to be run efficiently by qualified individuals. Historically, many cities have elected the city clerk to perform narrow statutory duties. However, as cities have grown and become more complex, the duties of the city clerk have significantly e and become more technical. City clerks now require a high level of e and training with knowledge of focal and State laws relating to the Public Records Act, Brown Act (open meetings), Political Reform Act, Municipal Elections, and the Municipal Code. As a result, 2% of cities in California appoint their city clerks. The majority of responsibilities of the Arroyo Grande city Clerk are performed by a department director position, making the elected position largely ceremonial. Since the serve person currently holds both positions, Arroyo Grande has a highly qualified individual performing these functions and saves - on benefits. However, should a vacancy occur, it may be difficult to find a qualified individual to run for the office of city clerk. The only qualification to serve as elected city clerk is to be a registered City voter. A recent Grand Jury report found that "health benefits alone may be sufficient to attract unqualified persons to run for [city clerk], leaving the work to City staff and costing the cities health benefits for persons performing no useful function." The public deserves the duties of the city clerk to be performed professionally and efficiently. Consolidating the director position with the elected position into one appointed position will reduce future costs and help ensure the city clerk is selected based on technical skill,, education and e The Arroyo Grande city Council urges you to vote "YES" on Measure Tony Ferrara, Mayor Joe Costello, Council Member Caren Ray,, Council Member Jim Guthrie, Mayor Pro Tern Chuck Fellows, Council Member Agenda Item 10.a. Page 16 ARGUMENT IN FA of MEASURE Your "Yes" vote on Measure will convert the city treasurer from an elected to an appointed position and is placed before the voters to help ensure the City's financial resources continue to be managed effectively by qualified individuals. The city treasurer is responsible for handling all public funds. Therefore, the position requires a person who possesses technical experience and knowledge of public investments. As a result, 64% of California cities appoint their city treasurers. The most recent city treasurers have held other full - time City positions and deputized the finance director to perform the treasurer's responsibilities. Therefore, the position has become largely ceremonial and is not currently receiving separate health benefits. However, other individuals elected in the future could. 1 increase costs by requiring the City to provide separate benefits to a person performing no function; or 2 cause serious financial problems if an unqualified individual was elected and performed the treasurer's responsibilities. A recent Grand Jury report agreed, stating the following: There are reasons to be especially corcerred about the practice of electing city treasurers. Any citizen who is a resident of the city can ru for the office, without possessing any particular q ualifications. if a candidate with are agenda markedly edly at odds with the city council and the city manager — one w ith little commitment men o professional in vesting, for example — were to wiry, many millions of city dollars could be at risk or, al errra i ely, tied up in a dispute overpower. The report concluded that the city could benefit from an appointed city treasurer. This will enable the treasurer's responsibilities to be assigned to the finance director, which will reduce future costs and help ensure they are performed by someone selected based on skill, education and experience. The Arroyo Grande City Council urges you to vote "Yes" on Measure �. Tong Ferrara, Mayor Joe Costello, Council Member Jiro Guthrie, M ayor Pro Tern Chuck Fellows, Council Member Caren Flay, Council Member Agenda Item 10.a. Page 17 ATTACHMENT ELECTING CITY TREASURERS AND CLERKS: WISE OR OTHERWISE? SUMMARY The Grand Jury investigated the value and appropriateness of electing vs. appointing) city clerks and treasurers in general law cities in. Sari Luis Obispo County. We determined that Atas adero has been lax in adhering to state government code requirements and that their elected treasurer shows little interest in the financial oversight responsibilities that are part of his job. The elected treasurer in Paso Robles is fully qualified and attentive to the discharge of his duties. In Arroyo Grande, the elected treasurer is a clerk who simply deputizes her boss in the city manager's office to actually do the job. We find this arrangement presents potential problems. In all three cities the elected city clerks are regular full -time city employees. They either perform their legally defined tasks themselves , r deputize another city employee to do so on their behalf. In the three cities the elected clerks and treasurers are paid stipends ranging from $5 to $600 per month. In addition they are entitled to health care benefits that can be substantial. If, however, the elected clerk or treasurer is also a full -tine city employee, those health care benefits are already covered. 2009 -2010 San Luis Obispo County Grand Jury Page 1 Agenda Item 10.a. Page 18 Convincing the electorate of the three cities to make these jobs appointive might, if approl riate safeguards were established at the same time, improve efficiency and in the case of city treasurers clarify oversight responsibilities. PROCEDURE 0 Elected city treasurers and clerks were interviewed, as were two appointed city treasurers. State laws governing the establishment and duties for those positions were reviewed. 0 City ordinances prescribing the pay and duties of those positions were studied. • Investment policies and financial holdings of the three cities as well as other cities were reviewed. 0 Background and data related to those posts were collected from the League of California Cities and statewide associations for city clerks and treasurers. [. Z. Elk T 0. ; Y 11. t W.. 4 Candidates for the offices of city treasurer and city cleric often run for office unopposed. All three cities with elected treasurers and clerks have benefited by having city staff members who live within the city boundaries run and win those offices. Where that occurs, the system tends to function well and the cities avoid paying health benefits for elected office holders.' This strategy .1 The California Municipal Law Handbook states: "Benefits. A city may provide health and welfare benefits, such as medical, dental and life insurance, to m embers of its eitt r council." Cal. Gov't Code § § 53200 - 53210. Any amounts pain by a city for retirement, health and welfare, and federal social security benefits are not subject to the salary limits in the Go vernment Code "provided the same benefits are available and paid by the city for its employees."" Cat. Gov't Code § 36516(e); see 83 Cal. Op. Att' Geis. 124 (2000); 89 Cal. Op. Att'y Gen. 107 (2006) (addressing cash in -lieu payments for waived benefits. 2009-2010 San Luis Obispo County Grand Jury Page 2 Agenda Item 10.a. Page 19 also allows the cities to comply with a state law that requires elected officials to lire within the city. City employees who may be deputized to actually perform some or all of the treasurer or city clerk functions are not required to live in the city. City treasurers and clerks are elected in more than a third of California cities. The League of California Cities, in its latest available tracking, counted 146 cities with elected city clerics and 174 with elected treasurers. There are 368 general law cities govemed by stag codes requiring them to have either elected or appointed city clerks and treasurers. A limited number of incorporated cities in the stag, including San Luis Obispo, operate under a voter-approved charter that determines whether these positions are filled by election or appointment. City clerks maintain city records and male them available to the public. They perform under public scrutiny. Many of the clerks" s" duties are prescribed by laws governing open meetings, public records and election procedures. city treasurer`s functions are less obvious to the general public. Public disclosure of financial reports vanes from city to city. Current monthly reports of receipts, disbursements and fund balances are often unavailable on city web sites though some of the cities in this report may be changing their practice in that. Treasurers are required by statute to prepare these reports and file them with the city council. The investment policies that govern a treasurer's action are not allays kept up to date or posted on the web. And a city's annual financial report that is to be prepared for the state controller and published for the public's benefit within 120 days of the end of the fiscal year is often difficult to find. A fill, audited statement of the city °s financial position often tales six months or more to produce and may, or may not, be made available to the public on the city's web site. In addition. California Government Code section 36517 provides that the city clerk and the city treasurer shall receive, at stated tines, a "compensation nsation fixed by ordinance or resolution."' Therefore, it is up to the city council to set the compensation for the clerk and treasurer. 2009 -2010 San Luis Obispo County Grand Jury Wage Agenda Item 10.a. Page 20 The specific duties of a city treasurer a s established in state law include -- in addition to complying with all laws governing the deposit and securing of public funds -- issuing only those checks signed by legally designated persons, making a monthly report to the city clerk that accounts for all receipts, disbursements and fund balances, and filing a copy of that report with the city council. The treasurer may also collect taxes prescribed by ordinance. Significantly, state law allows an elected treasurer to deputize a city employee to perform the treasurer's duties. when a city employee runs for these offices, that candidate often runs unopposed. when a city employee wins the job, this arrangement can give a city manager discretionary powers over the elected official — whether those powers are exercised or not. While electing a city staff member as clerk or treasurer may save the city money on health benefits, it also creates the questionable situation in which the elected official is at once an employee responsible to a city manager or other execrative and an elected officer responsible to the electorate at the ballot box. Under these circumstances potential connects of interest are inherent. There are reasons to be especially concerned about the practice of electing city treasurers. Any citizen who is a resident of the city can run for the office, without possessing any particular qualifications. If a candidate with an agenda markedly at odds with the city council and city manager - -one with little commitment to professional investing, for example -- were to vein, many millions of city dollars could be at risk or, alternatively, tied up in a dispute over power. State law gives the treasurer superviorial and monitoring powers over the city's finances. In all three cities voters have been asked to make the clerics and treasurers appointed rather than elected officials and have turned that request down, presumably so the voters would have a more direct say in city management. But ironically, when these folks are elected but concurrently serve as city employees, it could be difficult for them to function as independent public watch dogs. to Arroyo Grande, the elected treasurer appoints her boss to do the job to which she (the employee) was elected. 2009 -2010 San Luis Obispo County Grand Jur Page 4 Agenda Item 10.a. Page 21 Following is a description of the various ways elected treasurers and city clerks function in San Luis Obispo County: Arroyo Grande The Arroyo Grande treasurer per ones none of the functions of the job. She had served as an accounting clerk for two years when the city manager requested she run for city treasurer in 2008 because the city's director of finance could not run. She did not live in the city. The accounting clerk agreed to stand for that office, which pays 5 a month. No one filed against her. In Arroyo Grande that year, no general election was held for any of the city offices because only one person Filed for each position up for election: mayor and city council member, city clerk, and city treasurer. given that circumstance, state law specifies that the city council can appoint all candidates to office without holding an electron. The Arroyo Grande treasurer, who remains a payroll clerk earning in the range of $40,000 - $48,000 a year, immediately appointed the city's director of Financial services as deputy city treasurer. She (the payroll clerk) received little or no briefing about her on -going responsibilities as city treasurer. The Finance director performs all of the duties of the treasurer and oversees the staff that helps with those duties which generally require important technical skills and knowledge. This is in accordance with the city's detailed investment policy which is reviewed annually by the city council. Virtually all of the city's ongoing funds -- approximately $1 million which may go up or down as the city's bills come clue -- are invested in the state - operated Local Agency Investment Fund which currently pays about one percent M in annual interest and allows the city to move money in or out of the fund on a daily basis. The city investment policy states that "to protect against fraud or embezzlement or loses caused by collapse of an individual securities dealer, all securities owned by the city shall be held in safekeeping by a third party bank trust department." The current city clerk was hired by the city in 1999 to serve as deputy city clerk, rare unopposed for the post in 2004 and, as the only candidate, was appointed city clerk in 2008. As a city employee she is paid about $85,000. a year and holds the title of director of legislative and 2009-2010 San Leis Obispo County Grand Jury Page Agenda Item 10.a. Page 22 information services. Her staff helps her perform all of the state prescribed functions of city clerk. By city ordinance, an elected treasurer who was not an employee of the city would be paid only a month, but would also receive city paid health benefits, which are valued at about $12,000 a year. An elected city clerk, who was not a city employee, would be paid only $25 a month and would receive the same health benefits. Today, the city saves the cost of those benefits because the positions are currently held by persons who already receive health benefits as employees. Both office holders now intend to run for re- election in 2012. Ataader The elected city treasurer in Atscadero is an independent office holder. He runs his own tax and financial planning business and signs off on financial reports prepared by the city staff. The reports are supposed to be prepared monthly, but that doesn't always occur. The last of those reports that could be summoned from the city's web site is from March 2008. An unsigned copy of such a report for September 2009 was provided to the Grand ,fury. The Ataadero City Council's approved investment policy dates back to 2006. It calls for the oversight of investments to be conducted by the city manager, the director of administrative services and the treasurer. The city maintains a safekeeping trust account for p aper w ork and processing investments. All three of the officials with oversight duties can access the money in that account. Ata cadero' s elected treasurer has not deputized any city staff members to perfonn the functions required of him by law. The elected treasurer invests city funds in certificates of deposit. He is paid $200 a month plus health benefits which are valued at about $8,000 a year. The treasurer was first elected to the post in 2002 and re- elected in 2006, running unopposed both tirn.es. He will be up for election again in 201.0 and is not expected to run for re-election. He initially ran for the job to help assure that no candidate who night interfere with city operations was elected. 2009 -2010 San Luis Obispo County Grand Jury Page Agenda Item 10.a. Page 23 A.t&scader 's elected treasurer was managing investments of about $9 million in certificates of deposit, $924,000 in government securities and $25.8 million in Local Agency Investment Funds to September 2009, according to a report prepared by the city finance department. The director of administrative services, although not deputized, oversees the rest of the city's funds, most of which are invested in the state's Local Agency Investment Fund. The remainder of the city's $37.2 million was held in cash accounts, according to the monthly report provided to the Grand Jury. Neither the city council nor the city manager meet every three months with the treasurer as the council's investment policy prescribes. Nor does the treasurer attend city council meetings. When first elected, the treasurer attended some training conducted by a statewide association on municipal finance, but has not recently participated in any such session. He is not currently conversant with state laws prescribing appropate city investments though he is aware that most of the city's money is invested in the respected Local Agency Investment Fund. The Atascadero City Clerk operated a private secretarial service when she was appointed to the city clerk position in November ember 1996. She then was elected without opposition in 1998, 98, 2002 and 2006. She plans to run. for re- election in 2010. She was paid $200 a month for performing the clerk's ceremonial duties when first elected, and a staff member in the city manager' s office handled most of the paperwork. But that arrangement soon changed, and she was hired to fill a full -time city staff' position while continuing to perform the c1 y clerk. functions. Her staff title is administrative assistant to the city manager. She is now paid more than $78,000 a year for her work, which includes handling the job of city clerk. She continuos to receive a $200 monthly stipend for being elected city clerk. . Paso Robles The city of Paso Robles has a veteran investment officer serving as its elected city treasurer. He was first elected in 1988 and served in that capacity while on the city staff as director of administrative services. He retired from his city job in 2007 but continues to serve as the elected 2009- 20.10 San Luis Obispo County Grand Jury Page Agenda Item IO.a. Page 24 treasurer. He was most recently re- elected in 2008. As a city staffer he received no pay or extra benefits as treasurer but, under a 1998 voter - approved ordinance, as an independent city treasurer he is paid the same $600 a month received by city council members along with health benefits worth about $9,600 a year. The Paso Robles treasurer actively manages a portfolio that had a market value of just over $ million at the end of August 2009. At that tine, some 38 percent, or about $25.6 million, was invested in the Local Agency Investment Fund. Another 43.6 percent . about $29.2 million was in federal agency coupon securities, and 13.2 percent (about $8.8 million) of the portfolio was in government housing bonds. Bank certificates of deposit were 2. 7 percent abut $1. 8 million) of the portfolio, and smaller categories included medium terra motes and miscellaneous coupon securities. The city - council - adopted investment policy specifies arrangements for "sa el .eeping institution" but allows some accounts to he held by the city alone. The treasurer currently plans to seek re- election in 2012. Paso Robles' elected city clerk is paid $120,000 a year for his staff position as the city's maintenance services superintendent in charge of streets, city buildings and the city vehicle fleet. His pay as city clerk is zero and he receives no addi.ti.onal money for health benefits. A cleric who was not a city employee would make $600 a month and the city would pay for health benefits. In Paso Robles the elected city clerk retains the rights and duties of the office, but deputizes the assistant city manager and secretaries in the community development and police departments to perform the functions of the office. The deputy city clerk position is vaunt and the elected clerk contributes by attending council meetings and paging more attention to the clerk's tasks. Other general law cities In Grover Beach, Morro Bay and Pismo Beach the city treasurers are appointed. The city's chief financial officer is named to that post and designated to perform the state- required duties. 2009 -2010 San Luis Obispo County Grand .fury Page Agenda Item 10.a. Page 25 CONCLUSIONS By law, elected city treasurers play a lira -ited but important role in the ongoing financial health of general law cities in San Luis Obispo County. In fact, their approaches to the job vary significantly. In Arroyo Grande, the treasurer has delegated her job without knowledge of its responsibilities. In Atascadero, the treasurer" s oversight effort is negligible. In Paso Robles an experienced investment officer manages the money with close attention to detail. He may quit in 2012 and the city will be hard pressed to replace h1 m.. The three cities could benefit from appointed treasurers. At a minimum, the cities should do a better job of informing the public of city finances and the important oversight role that treasurers are assigned in maintaining the financial health of the municipality. That said, they reed to be trained and attentive. There is continued risk of electing treasurers who can win office with a political agenda and no qualifications. In each of the three cities, the city clerks who are paid employees with other duties, are doing the job or are knowledgeable of its importance. over the long haul, city clerk positions could be streamlined by making .g them appointive although there could be concern that public access to documents may be more easily limited when the position is appointive. FINDINGS 1. Elected city treasurers sometimes lack the technical skills and professional experience to adequately perform the duties of the office. 2. Health benefits alone may be sufficient to attract unqualified persons to run for the job, leaving the work to city staff and costing the cities health benefits for persons performing no useful function. 3. Efforts to convince voters to approve mating the job appointive have failed in all three cities. 2009 -2010 San Luis Obispo County Grand Jury Page Agenda Item 10.a. Page 26 4 . The cities have found different ways to deal with these challenges. One approach is to arrange for a city employee to be elected treasurer and have that employee designate the finance director to do the job. But that approach can have inherent conflicts of interest. 5. Communication is minimal between the Atascadero treasurer and the other city Officials who have financial Oversight responsibilities. . . Ataseadero officials failed to complete and provide the council with the state - required monthly financial reports in a timely manner for the period Of April 2008 through November 2009. 7. The elected Arroyo Grande treasurer has received very minimal training about the responsibilities Of the position. 9. Elected city clerks in the three cities are all staff members and generally perform the jobs according t0 the requirements Of state law. 9. Recognizing that the offices of treasurer and city clerk generally require technical skills and knowledge, A rroyo Grande's city management is recommending that provisions to allow these posts to become appointed positions again be Placed before the voters. RECOMMENDATIONS 1. Given state law, city councils should make sure that their investment policies are as air tight as possible and assure that those policies are carefully and continually followed to eliminate the potential f o r an elected treasurer t0 misuse his or her powers, (Findings 1, 2 and ) 2. City councils and city managers should require that their functioning treasurers and city clerks, w hether elected, appointed or deputized, provide all reports required of those Offices at the time designated in state law. (Finding 6 3. Financial reports, and backup documents recording changes in investments, should be carefully scrutinized by a council member On a monthly basis. (.Findings 1, 2, 5 and ) 4. City councils in Arroyo Grande, Atascadero and Paso Robles should consider trying again to convince the electorate to make at least the position of treasurer appointive, while educating the electorate about qualifications needed in a treasurer and committing 2009 -2010 San Luis Obispo County Grand Jury Page 10 Agenda Item 10.a. Page 27 the city to require appointed treasurers to possess those qualifications. (Findings 1, 2,3,4 and 5 5. All general law cities in the county should post the state - required monthly treasurer's report and annual financial statement on the city's web site in a location easy to find. (Finding b) 6. Arroyo Grande should, at a minimum, send its elected treasurer to a training session where she can learn about the responsibilities she is delegating. REQUIRED RESPONSES The Arroyo Grande City Council is required to respond to e nrnmendation.s 1, 2, 3, 4, 5 and 6. The responses shall he submitted to the Presiding Judge of the San Luis Obispo Superior Court by July 2, 2010. Please provide a copy of all responses to the Grand Jury as well. The Ataseadero City Council is required to respond to Recommendations 1, 2, 3, 4 and 5. The responses shall be submitted to the Presiding Judge of the San Luis Obispo Superior Court by July 2, 2010. Please provide a copy of all. responses to the Grand Jury a s well. The Paso Robles City Council is required to respond to Recommendations 1, 2, 3, 4 and 5. The responses shall be submitted to the Presiding ,fudge of the San Luis Obispo Superior Court by July 2, 2010. Please provide a copy of all responses to the Grand Jury as well. The mailing addresses for delivery are. Presiding Judge Grand ,fury Presiding fudge Charles S. Crandall fan Luis ibis fount Grand Jury P.O. Box 4910 1050 Monterey Street San Luis Obispo, CA 93408 San Luis Obispo, CA 93402 2009 - 2010 San Luis Obi spo County Grand Jury Page 11 Agenda Item 10.a. Page 28 June 23, 201 Presiding Judge Charles S. Crandall Superior Court of California 1050 Monterey Street San Luis Obispo, CA 03408 Dear Honorable ,Judge Crandall: FIN &E 0Hk1jI4'►k IF P.O. Box 550 214 East Branch Street Arroyo Grande, CA 93421 Phone: (805) 473 -5404 FAX: (505) 473 -0386 E -M i[; agcity@arroyogrande.or On behalf of the city of Arroyo Grande, thank you for the information provide d by the Grand Jury in the report titled: "Electing city Treasurers and Clerks: Wise or Otherwise?" and the opportunity to respond to the findings and recommendations. This is an issue the City has been working on addressing for several years. The City Council approved the City's responses at their June 22, 2010 meeting. Grand Jury Recommendation ##1: Given State law, city councils should make sure that their investment policies are as air tight as possible and assure that those policies are carefully and continually followed to eliminate the potential for an elected treasurer to misuse his or her powers. (Findings 1, 2 and 5) City response: The City Council approves the City's investment policy annually. The Director of Administrative Services and the city's auditors both review and update the investment limits o n an annual basis. The City's investments are audited annually and the auditors verify that the City is in compliance with the policy at that tune. In addition, monthly investment reports are provided to the City Council and public for review and approval Grand Try Recommendation #2: City councils and city managers should require that their functioning treasurers and city clerk, whether elected, appointed or deputized, provide all reports required of those offices at the time designated in state laver. (Finding 6 City Response: Beginning January 1, 2007, it was no longer required by statute that the treasurer or chief financial officers of local government entities annually submit a statement of investment policy to their governing body. However, it is highly recommended y both the Association of Public Treasurers of the United States Canada and the Government Finance Officers Association GF A . Therefore, the City has continued to provide these to City council on an annual basis. Grand .fury Recommendation ##3: Financial reports, and backup documents recording changes in investments, should be carefully scrutinized by a council member o n a monthly basis. (Findings 1, 2, 5 and 6) Agenda Item 10.a. Page 29 City Response: Investment reports are provided to the Council on a monthly basis. A member of the City Council is also designated to serge on the the Audit Committee. Grand Jury Recommendation mmendation #4: City councils in Arroyo Grande, Atas adero and Paso Robles should consider trying again to convince the electorate to make at least the position of treasurer appointive, while educating the electorate about qualifications needed in a treasurer and committing the city to require appointed treasurers to possess those qualifications. (Findings 1, 2, 3, 4 and 5) City Response: The City Council has approved placing measures on the November 2, 2010 ballot to make the City Treasurer and City Clerk positions appointive. The Grand Jury findings are cited in the approved ballot argument. O ver the past fever months, City staff has provided public information regarding these issues and the reason for the proposed measures through presentations to community groups, a public workshop, a video on the City's cable television government access channel, and an article in the Times Press Recorder. The City Council has directed staff to prepare an Ordinance delegating the appointive authority to the City Manager if the measures are successful. g g Therefore, the City's established process for recruitment and hiring will be utilized in the future to ensure appointed treasurers and city clerks will possess the necessary qualifications. Grand Jury Recommendation #5: All general lair cities in the county should post the state-req 'monthly treasurer's report and annual financial statement on the city's web site in a location easy to find. (Finding 6) City Response: The Cit #s investment policy is posted online, as Drell ' as the City's Comprehensive Annual Financial Report (GAFF . The monthly investment report is posted on the City's website monthly through the agenda process. Grand Jury Recommendation ommendation ; Arroy Grande should, at a minimum, send its elected treasurer to a trainin g session where she can learn about the responsibilities she is delegating. City Response: Funding has been appropriated for membership of the City Treasurer t p g and Director of Administrative Services in the California Municipal Treasurers Association CMTA . Funding was also approved by the City Council for both the City Treasurer and Director of Administrative Services to attend a 3 -day training class in Se tember onsored y this organization titled "Essentials of Treasury Management." p Please let us know if you have questions or would like any additional information. Sincerely, Tony Ferrara Mayor Agenda Item 10.a. Page 30 ATTACHMENT CALIFORNIA CODES GOVERNMENT CODE SECTION 40801 -40814 40801. The city clerk shall keep an accurate record of the proceeding of the legislative body and the board of equalization in books bearing appropriate titles and devoted exclusively to such purposes, respectively. The books shah have a comprehensive general index. 40802. The city clerk is the accounting officer of the city and shall maintain records readily reflecting the financial condition of the city. 0804. The city clerk shall cause a summary of the city's financial report required by Section 53891, in a form prescribed by the State Controller, to be published once in a newspaper of general circulation, pursuant to Article 1 (commencing with Section 6000) , Chapter 1, Division 7, Title 1 of the Government Code. If there is no such newspaper he shall cause copies of the statement to be posted in three public places in the city designated by ordinance as the places for posting of public notices. 40805. The report shall be published or posted not later than 128 days after the close of the fiscal year for which the report is compiled. 40805.5. The financial and accounting duties imposed upon the city clerk by Sections 40802 through 40805 may be transferred to a director of finance when such office has been established and the pourers and duties thereof defined by ordinance. 40806. The city clerk shall keep a book marked "ordinances" and record in it all city ordinances with his certificate annexed to each, stating: a) It is a true and correct copy of a city ordinance. b) The ordinance number. c) It has been published or posted pursuant to lair. 40807. The record with the certificate is prima facie evidence of the contents of each ordinance and of its passage and publication. It is admissible as such evidence in any court or proceedings. Agenda Item 10.a. Page 31 40808. The official city records in the custody of the city �cl rk shall not be filed in any court proceeding or other action but shall be returned to the custody of the city clerk. 40809. This article does not prevent the proof of the passage and publication of ordinances in the usual way. 40810. The city clerk is the ex officio assessor unless the legislative body provides for the assessment and collection of city taxes by county officers or otherwise. 40811. The city clerk is the custodian of the city seal. 40812. He shall perform such additional duties as' are prescribed b ordinance. 40813. The city clerk may appoint deputies, for whose acts he and his bondsmen are responsible. The deputies shall hold office at the pleasure of the city clerk and receive such compensation as is provided by the legislative body. 40814. The city clerk and his deputies may administer oaths or affirmations and take and certify affidavits and dep033 -tions pertaining to city affairs and business which may be used in any court or proceedings in the state. The acknowledgment of an instrument may be made before a city clerk and his deputies within the city in which they were elected or appointed. Agenda Item 10.a. Page 32 ATTACHMENT T 0 CALIFORNIA CODES GOVERNMENT MEI T CODE SECTION 41001-41007 41001. The city treasurer shall receive and safely keep all money coming into his hands as treasurer. 41002. He shall comply with all laws governing the deposit and securing of public funds and the handling of trust funds in his possession. 41003. He shall pay out money only on warrants signed by legally designated persons. 1004. R egularly, at l east once each month, the c ity treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances. He shall file a copy with the legislative body. 1005. The city treasurer shall perform such duties relative to the collection of city taxes and license fees as are prescribed by Ordinance. 41006. The city treasurer may appoint deputies for whose acts he and his bandsmen are responsible. 41007. The deputies shall held office at the pleasure of the city treasurer and receive such compensation as is provided by the legislative body. Agenda Item 10.a. Page 33 THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item 10.a. Page 34 t ROY INCORPORATE i rrr JULIA 10, 1911 MEMORANDUM T: CITY COUNCIL FROM: DOUG PERRIN, DIRECTOR of RECREATION AND MAINTENANCE SERVICES .•'- SUBJECT: CONSIDERATION ATI N of AN ORDINANCE ADDING CHAPTER 5.90 T TITLE 5 of THE ARROYO GRANDE MUNICIPAL CODE REGARDING DIN BINGO AND REMOTE CALLED BINGO GAMES DATE: JUNE 22 201 RECOMMENDATION: TIOI : It is recommended the City Council introduce an Ordinance adding Chapter 5.90 to Title 5 of the Arroyo Grande Municipal Code related to bingo and remote caller bingo games. FINANCIAL IMPACT: No financial impact. BACKGROUND: Many charities, such as churches, senior citizens clubs, athletic boosters and social organizations, have traditionally used bingo to generate funds. The City currently has no provisions regulating bingo games. staff is recommending that the City Council adopt a new Ordinance amending the Arroyo Grande Municipal Code to authorize both traditional and remote caller bingo. Remote to caller bingo is a traditional paper and dauber bingo game where numbers are drawn and announced at one binge location and transmitted using audio and video technology to additional off -site locations playing the same game. This new style of linked bingo play was authorized by legislation passed last year, senate Bill 1369 SB1369), wh i h took effect Ja n ua ry 2009. In addition to requiring eligible nonprofits to become recognized by the California Gambling Control Commission C.GCC and that remote callers be licensed by the CGCC SB1369 and companion legislation direct that nonprofit organizations must also adhere to the following state restrictions: ■ The games rust be conducted by one of the following organizations: • An organization that is exempted from the payment of bank and corporation tax by section 23701a, 23701b, 23701d, 23701 e 23701f, 23701g 23701k, 23701wl, or 230711 of the Revenue and Taxation Code; A mobile home park association; Agenda Item 11.a. Page 1 CITY COUNCIL INTRODUCTION of AN ORDINANCE ADDING CHAPTER 5.90 To TITLE 5 of THE ARROYO GRANDE MUNICIPAL CODE REGARDING BINGO AND REMOTE CALLER BINGO GAMES JUNE 22, 2010 PAGE 2 0 A senior citizens organization; or Charitable organizations affiliated with a school district. ■ The organization conducting the game shall have been incorporated or in existence for three years or more ■ The organization conducting the game shall be licensed pursuant to Section 326.5 of the California Penal Code. ■ The net receipts of the game, except for an allowance for overhead costs not to exceed 20 %, roust be used only for charitable purposes. 0 The organization must conduct the games in locations owned, [eased, or rented by the nonprofit offering the games or the use o f which has been donated to the organization. ■ The operation of bingo may net be the primary purpose for which the organization is established. ANALYSIS OF ISSUES. The City of Arroyo Grande has no provisions in its Municipal Code to allow for bingo of any sort. Because the City has no existing bingo ordinance, any games that may be currently operating within the City's limits are in violation of the City's Municipal Code. The attached Ordinance will legalize charitable bingo using either traditional or remote caller methods. Key provisions included in the City 3 s Municipal Code require that the interested nonprofits acknowledge the requirements to comply with Penal Code Section 326.3 relating to licensing requirements for remote caller bingo. That statute imposes a series of regulations on remote caller bingo operators, including special licensing requirements and oversight by the California Gambling Control Commission. A copy of Penal Code Section 326.3 and 326.4 is also attached. There is a limit on the number of remote caller bingo games. A licensee may not conduct remote caller bingo games on more than two days during any week, except that a licensee may hold one additional game, at its election,, in each calendar quarter. The amendment also caps the prize limit at $500. ALTERNATIVES: The following alternatives are provided for the City Council's consideration: • Introduce an Ordinance adding Chapter 5.90 to Title 5 the Arroyo Grande Municipal Code regarding bingo and remote caller bingo games; • Modify staff s recommendation and introduce an Ordinance; Continue consideration of the Ordinance; • o not introduce the ordinance; or • Provide direction to staff. Agenda Item I I.a. Page 2 CITY COUNCIL INTRODUCTION OF AN ORDINANCE ADDING CHAPTER 5.90 TO TITLE 5 OF THE ARROYO CY GRANDE MUNICIPAL CODE REGARDING BINGO AND REMOTE TE CALLED BINGO GAMES JUNE 22, 201 PACE 3 ADVANTAGES: Amending the Arroyo Grande Municipal Code to include language allowing for charitable bingo games, both traditional and remote caller, will provide a safe, enjoyable opportunity for local non - profit organizations to generate revenue. Additionally, the Children In Motion Subcommittee is exploring methods through which charitable organizations conducting bingo games can help sponsor, through donations, the Children In Motion program. DISADVANTAGES: Some residents may object to bingo since it is a form o f gambling. ENVIRONMENTAL TAL F E IE ' : No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City lull on Thursday June 17, 2010 and o n the City's website on Friday, ,dune 18, 2010. No public comments were received. Attachment: 1. Penal Code section 326.3 and 326.4 Agenda Item I I.a. Page 3 ORDINANCE No. AN ORDINANCE of THE CITY COUNCIL of THE CITY OF ARROYO GRANDE ADDING CHAPTER 5.90 To TITLE 5 of THE ARROYO O GRANDE MUNICIPAL CODE REGARDING BINGO AND REMOTE CALLER BINGO GAMES WHEREAS, nonprofit organizations provide important and essential educational, philanthropic, and social services to the community; and WHEREAS, there is a need to provide methods of fundraising for nonprofit organizations to enable them to provide these essential services; and WHEREAS, EAS, historically many nonprofit organizations have used charitable bingo as one of their key fundraising strategies to promote the Mission of the chanty; and WHEREAS, EAS, Under Article IV, Section 19 of the California Constitution and Penal Code section 326.5, cities ma ► enact ordinances authorizing bingo games provided they are conducted by specified organizations in a manner consistent with Penal Code section 326.5; and WHEREAS, in addition, recently the California Legislature has enacted Penal code Section 326.3, authorizing local agencies to allow remote caller bingo games within the agencies jurisdiction so long as the agency adopts an ordinance under Article I, Section 19 of the California constitution permitting remote caller bingo to be played and conducted only in accordance with applicable provisions of the Penal code; and WHEREAS, The city Council has determined that it is appropriate to adopt an ordinance in the City of Arroyo Grande to authorize bingo games and remote caller bingo games pursuant to the authority in the California Constitution and the Penal code. NOW, THEREFORE BE IT ORDAINED by the City Council of the city of Arroyo Grande as follows: SECTION 1. chapter 5.90 is hereby added to Title 5 of the Arroyo Grande Municipal Code as set forth in Exhibit A, which Exhibit is attached hereto and incorporated herein by this reference. SECTION 2. If any section, subsection, subdivision, paragraph, sentence, or clause of this Ordinance or any part thereof is for any reason held to be unlawful, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The city Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, or clause be declared unconstitutional. Agenda Item 11.a. Page 4 ORDINANCE NO, PAGE 2 SECTION 3. A summary of this Ordinance shall be published in a newspaper published and circulated in the City o Arr Grande at least five 5 days prior to the City Council meeting at which the proposed Ordinance is to e adopted. A certified copy of the full tent of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen 15 days after adoption of the Ordinance, the summary with the names of those City Council Members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance. SECTION 4. This Ordinance shall take effect thirty 3 days after its adoption. on motion by Council Member , seconded by Council Member , and by the following roll call Grote to wit: AYES: DOES: ABSENT. the foregoing Ordinance was adopted this day of , 2010. Agenda Item 11.a. Page 5 ORDINANCE N. PAGE TONY FE F AI A, MAYOR ATTEST. KELLY WETMO E, CITY CLEF APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. C ARM E L, CITY ATTORNEY EY Agenda Item I I.a. Page 6 ORDINANCE NO. PAGE EXHIBIT A CHAPTER 5.90 BINGO GAMES Sections: 5.90.019 Bingo defined. 5.90.920 License - Eligible organizations. 5.99.930 Application - contents. 5.99.049 License - Issuance and contents. 5.90.950 License - Denial. 5.90.060 License-Revocation. 5.90.079 Appeals. 5.90.089 Reapplication following license revocation. 5.90.090 Maximum amount of prize. 5.90.1 99 Profits to be kept in separate fund or account. 5.90.110 Financial interest in licensee only. 5.90.120 Exclusive operation by licensee. 5.90.139 Open to public. 5,90.149 Attendance limited to occupancy capacity. 5.90.150 Game only on licensee's property. 5.90.189 Minors prohibited. 5.99.170 Intoxicated persons prohibited. 5.90.180 Incurs of operation. 5.90.190 Participant must be present. 5.99.209 Receipt of profit by unauthorized person unlawful. 5.90.210 city may enjoin violation. 5.90.229 Remote to Caller Bingo gates 5.99.230 Qualified organizations /Remote Caller Bingo licenses 5.90.249 Remote Caller Bingo license application and fee 5.90.250 Remote a Caller Bingo license application verification 5.99.260 Annual Remote Caller Bingo licenses 5.90.279 Remote Caller Bingo license conditions 5.99.280 Penalty 5.30.010 Bingo defined. As used in this chapter, "bingo" means a game o chance in which prizes are awarded on the basis of designated numbers or symbols that are marked o covered by the player on a card in the player's possession that conforms to numbers or symbols selected at random and announced by a live caller. The game of bingo also includes cards having numbers or symbols that are concealed and preprinted in a manner providing for distribution of prizes. The winning cards may not be known prior to the game by any person participating in the playing or operation of the bingo game. Only a covered or marked card possessed by a player and presented to an attendant may be used to claim a prize. Agenda Item 11.a. Page 7 ORDINANCE No. PAGE 5.30.020 License - Eligible organizations. The following organizations are eligible to apply to the City of Arroyo Grande for a license to conduct bingo games in the City under provisions of this chapter and Penal Code section 326. 5, provided that the proceeds or profits of such games, as applicable, are used only for charitable purposes: A. Organizations exempted from the payment of the bank and corporation tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, , 23701 w, or 237011 of the revenue and Taxation Code; B. Mobile home park associations; C. Senior citizen organizations; and D. Charitable organizations affiliated with a school district. 5.90.030 Application - contents. A. Eligible organizations desiring to obtain a bingo license must file an application in writing with the Administrative Services office. The application must, at minimum, contain the following: 1. The name of the applicant organization and a statement that applicant is an eligible organization under section 5.90.020; 2. The name and signature of at least two officers of the applicant organization; 3. The particular property within the City including the street number, owned or leased by the applicant, used by such applicant for an office or for performance of the purposes for which the applicant is organized, on which property all bingo games will be conducted, together with the occupancy capacity of such place; 4. Proposed days of week and hours of day for the conduct of bingo games; 6. A description of the type of bingo games to be conducted; 6. A statement than the applicant agrees to conduct bingo games in strict accordance with the provisions of Penal Code section 326.6 and this chapter as it may be amended from time to time and agrees that the license to conduct bingo games may be revoked by the City upon violation of any of such provisions. E. The application must be signed by the applicant under penalty of perjury. C. The following items must be submitted with the application: 1. The license fee; such fee shall be established by City Council resolution and shall not exceed $bo, as permitted by Penal Code Section 326.5. 2. A diagram of the room to be used to conduct bingo showing the layout of tables and all exits. 3. If applicable, a certificate or determination of exemption or other proof of the organization's exemption under the Revenue and Taxation Code sections referred to in Section .9.20.A. 5.90.040 License - Issuance and contents. Upon being satisfied that the applicant is eligible to conduct bingo games in the City, the City Manager or his or her designee may issue a license to the applicant that, at minimum, contains the following information: A. The name and nature of the organization issued the license. Agenda Item 11.a. Page 8 ORDINANCE No, PAGE B. The address where bingo games are authorized to be conducted. C. The occupancy capacity of the room in which bingo games are to be conducted. D. The date of the expiration of such license, which will be: 1. For eligible organizations under Subsections A and D of Section 5.90.020, one year from the date of issuance. 2. For eligible organizations under Subsections B and C of Section 5.90.020, three years from the date of issuance. E. Such other information as may be necessary or desirable for the enforcement of the provisions of this chapter. 5.90.050 License - Denial. Pursuant to Penal Code section 326.5, if an application for a license is denied, one -half of any license fee paid will be refunded to the organization. 5.90.060 License-Revocation A. if a licensee is conducting a bingo game in violation of any of the provisions of this chapter or Penal Code section 326.5, the license may be revoked. The licensee shall be provided a statement of the grounds for the revocation and informed that it shall have fourteen calendar days from the date of service of such notice to request a hearing before the city Manager or his or her designee regarding such revocation. Failure to request in writing such a hearing within the fourteen days shall result in revocation of the license. Upon revocation, the licensee shall be notified of such fact by depositing in the United States mail a notice directed to the licensee at the address given in the application. In the event a hearing is requested, the licensee shall be given at least ten calendar days written notice of the date of the hearing. At the hearing, the licensee or its authorized representative shall have the right to present evidence, a written or oral argument, or both. All such testimony, whether written or oral, shall be given under penalty of penury. At the conclusion of the hearing, the City Manager or his or her designee shall make findings supporting his or her decision as to whether the license should be revolted. B. Any organization whose license is revolted under this section may not conduct any bingo game in the city until such time as the determination to revolve the license is overruled on appeal. 5.90.070 Appeals. Any person aggrieved by a decision to deny, revoke or refuse to renew a bingo license may appeal such decision to the City Council in the manner provided by Section 1.'12.01 o of this Code. 5.90.080 Reapplication n f ll wing License revocation. Any organization whose license is revoked may not reapply for a license to conduct bingo games in the City for a period of one year from the date of such revocation} provided, however, if the ground for revocation is cancellation of the exemption granted Agenda Item 11.a. Page 9 ORDINANCE NO, PAGE under the appropriate Revenue and Taxation code section set forth in section .9O.00.A, such organization may again apply for a license Ripon proof of reinstatement of the exemption. 5.90.090 Maximum amount Of prize. The total value of prizes awarded during the conduct of any bingo games may not exceed $500 in cash or Kind, or both, for each separate game which is held. 5.90.'100 Profits t0 be kept in separate fund Or account. All profits or proceeds derived from a bingo game must be Kept and used in the manner prescribed by Penal code section 326.5. The licensee must Keep full and accurate records o f the income and expenses received and disbursed in connection with its operation, conduct, promotion, supervision and any other phase of bingo games that are authorized by this chapter. The city, by and through its authorized officers or agents, has the right to examine and audit such record at any reasonable time and the licensee must fully cooperate with the City in mating such record available. 5.90.110 Financial interest in licensee Only. No individual, corporation, partnership or other legal entity except the licensee may hold a financial interest in the conduct of any bingo game. 5.90.120 Exclusive operation by licensee. A bingo game must be operated and staffed only by members of the licensee organization. Such members may not receive a profit, wage or salary from any bingo game. The licensee nay, however, employ security personnel to provide security services at bingo games and pay for such personnel from game proceeds. O nly the licensee may operate a bingo game and participate in the promotion, supervision or any other phase of such game. 5.90.1 30 Open t0 public. All bingo games must be open to the public, not just to the members of the licensee organization. 5.90.140 Attendance limited t0 Occupancy capacity. Notwithstanding that bingo games are open to the public, attendance at any bingo game is limited to the Occupancy capacity of the room in which such game is conducted as determined by the Fire Department and Building Official of the City. A licensee may not reserve seats or space for any person. 5.90.1 50 Game Only On licensee's propert In accordance with Penal code Section 326.5, a licensee may conduct a bingo game only on property owned or leased by it, or property whose use is donated to the organization, and which property is used by such organization for an office or for Agenda Item 11.a. Page 10 ORDINANCE NO. PAGE performance of the purposes for which the organization is organized. The license issued under this chapter authorizes the licensee to conduct bingo games only on such property, the address of which is stated in the application. The license must be prominently displayed on the property where the bingo games are conducted and must be presented immediately upon demand by a law enforcement officer o other authorized agent of the City. In the event the described property ceases to be used as an office and as a place for performance of the purposes for which the licensee is organized, the license will automatically terminate and have no further force or effect. A new license may be obtained by an eligible organization, upon application under this chapter, when it again owns or leases property used by it for a n office or for performance of the purposes for which the organization is organized. Nothing in this section will be construed to require that the property owned or leased by the organization be used or leased exclusively by such organization. 5.90A60 Minors prohibited. No person under the age of 1 years may be allowed to participate in any bingo game. 5.30.1 Intoxicated persons prohibited No person who is obviously intoxicated may be allowed to participate in a bingo game. 5.90.180 Fours of operation; No licensee may conduct any bingo games more than six hours out of any twenty-four- hour period. In addition, no bingo game may be conducted before ten a.m. nor after two a. ran. of any day. 5.90.1 90 Participant must be present. No person may be allowed to participate in a bingo game unless the person is physically present at the time and plane in which the bingo game is being conducted. 5.30.200 Receipt of profit by unauthorized person unlawful. Except for security personnel as provided in Section 5.90.120, it is a misdemeanor under Penal Code section 32.b for any person to receive a profit wage or salary from any bingo game authorized under this chapter. Such a violation is punishable by a fine not to exceed $10,000, which fine, upon payment, will be deposited in the general fund of the City. 5.90.210 city m ay enjoin violatio n. The City may bring an action to enjoin any violation of Penal code section 326.5 or of this chapter. Agenda Item I I.a. Page 11 ORDINANCE NO, PAGE 5. 90.220 Remote caller Bingo games Notwithstanding any other provision of this chapter, Remote caller Bingo may be lawfully played in the City of Arroyo Grande pursuant to the provisions of Sections 326.3 and 326.4 of the Penal code, and Sections 5.90.230 through 5.90.270 of this cha pter, and not otherwise. 5.90.230 Qualified organ izati n / emote caller Bingo licenses A qualified organization, as set forth in Penal Code Section 326.3, shall be permitted to obtain a Remote caller Bingo license pursuant to this chapter if: A. The organization has been incorporated or in existence for three gears or more; and B. The organization possesses a valid license pursuant to section 5.30.040 of this chapter; and C. The receipts of Remote Caller Bingo games shall be used only for charitable purposes; and D. The operation of bingo is not the primary purpose for which the organization is organized. 5.90.240 Remote caller Bingo license application and fee An application for a license to conduct Keynote Caller Bingo games shall be in a form prescribed by the City Manager or his or her designee and shall be accompanied by a nonrefundable filing fee in an amount determined by resolution of the City council from time to time. The following documentation shall be attached to the application, as applicable: (a) A certificate issued by the Franchise Tax Board certifying that the applicant is exempt from the payment of the Bank and Corporation Tax pursuant to Section 23701d of the Revenue and Taxation Code. ( b) Other evidence as the City Manager or his or her designee determines is necessary to verify that the applicant is a duly organized mobile home park association of a mobile home park situated in the City. To the extent possible, the city Manager or his or her designee shall integrate the process for obtaining a Remote Caller Bingo license with the process for obtaining the license in Section .90.04. 5.90.250 Remote to caller Bingo license application verification The Remote Caller Bingo license shall not be issued until the City Manager or his or her designee has verified the facts stated in the application and determined that the applicant is qualified. 5.90.260 Annual Remote caller lingo licenses A Remote Caller Bingo license issued pursuant to this chapter shall be valid until the end of the calendar gear, at which time the license shall expire. A new Remote Caller Bingo license shall only be obtained upon filing a new application and payment of the license fee. The fact that a license has been issued to an applicant creates no vested right on Agenda Item 11.a. Page 12 ORDINANCE ISO. PAGE 1 the part of the licensee to continue to offer bingo for play. The city council expressly reserves the right to amend or repeal this chapter at any time. If this chapter is repealed, all Remote caller Bingo licenses issues pursuant to this chapter shall cease to be effective for any purpose on the effective date of the repeal. 5.90.270 Remote caller Bingo license conditions A. Any Remote to caller Bingo license issued pursuant to this chapter shall be subject to the conditions contained in Sections 326.3 and 326.4 of the Penal code, and each licensee shall comply with the requirements of - those provisions. B. Each Remote caller Bingo license issued pursuant to this article shall be subject to the following additional conditions: (1) Bingo games shall not be conducted by any licensee on more than two days during any week, except that a licensee may herd one additional gave, at its election, in each calendar quarter. (2) The licensed organization is res ponsibl e for ensuring that the conditions of this chapter and Sections 326.3 and 326.4 of the Penal Code are complied with by the organization and its officers and members. A violation of any one o more of those conditions or provisions shall constitute cause for the revocation of the organization's Remote to caller Bingo license. Revocations cation and their appeals shall be governed by the same procedures contained in Section 5.90.060. 5.90 #280 Penalty. It is unlawful for any person to violate any of the provisions of this chapter. Any violation of any provision of this chapter other than violations of Section 326.5 of the Penal code shall constitute a misdemeanor. Agenda Item 11.a. Page 13 ATTACHMENT PENAL CODE 326.3. (a) The Legislature finds and declares all of the following: 1) Nonprofit organizations provide important and essential educational, philanthropic, and social services to the people of the State of California. (2) one of the great strengths of California is a vibrant nonprofit sector. (3) Nonprofit and philanthropic organizations touch the lives of every Californian through service and employment. ( ) Many of these services would not be available if nonprofit organizations did not provide then. () There is need to provide methods of fundraising to nonprofit organizations to enable therm to provide these essential services. ( ) Historically, many nonprofit organizations have used charitable bingo as one of their key fundraising strategies to promote the mission of the charity. (7) Legislation is needed to provide greater revenues for nonprofit organizations to enable there to fulfill their charitable purposes, and especially to meet their increasing social service obligations. ( ) Legislation is also needed to clarify that existing law re that all charitable bingo must be played using a tangible card and that the only permissible electronic devices to be used by charitable bingo players are card - minding devices. (b) Neither the prohibition on gambling in this chapter nor in Chapter to (commencing with Section 330) applies to any remote caller bingo dame that is played or conducted in a city, county, or city and county pursuant to an ordinance enacted under Section 19 of Article IV of the California Constitution, if the ordinance allows a remote caller bingo game to be played or conducted only in accordance with the requirements of this section, including the following requirements: ( 1 ) The game may be conducted only by the following organizations (A) An organization that is exempted from the payment of the bank and corporation tax by Section 23701a, 23701b, 23701d, 2370le, 23701f, 23701g, 23701k, 23701w, or 237011 of the Revenue and Taxation Code. (B) A mobilehome park association. ( A senior citizens organi zation. (D) Charitable organizations affiliated with a school district. (2) The organization conducting the game shall have been incorporated or in existence for three years or more. (3) The organization conducting the game shall be licensed pursuant to subdivision (l) of Section 326.5. () The receipts of the game shall be used only for charitable purposes. The organization conducting the game shall determine the disbursement of the net receipts of the game. ( ) The operation of bingo may not be the primary purpose for which the organization is organized. ( c ) ( 1 ) A city, county, or city and county may adopt an ordinance in substantially the-following form to authorize remote caller bingo in accordance with the requirements of subdivision (b) Sec. _.01. Legislative Authorization. This chapter is adopted pursuant to Section 19 of Article ITT of Agenda Item 11.a. Page 14 the California constitution as implemented by Sections 326.3 and 326. 4 of the Penal Code. Sec. _.2. Remote caller Bingo Authorized. Remote caller Bingo may be lawfully played in the (city, county, or City and county] pursuant to the provisions of Sections 326.3 and 326.4 of the Penal code, and this chapter, and not otherwise. Sec. _.3. Qualified Applicants: Applicants for Licensure. (a) The following organizations are qualified to apply to the License official for a license to operate. a bingo game if the receipts of those games are used only for charitable purposes (1) An organization exempt from the payment of the Bank and Corporation Tax by Section 23701, 23701a, 23701b, 23701d, 237 le-, 23701f, 23701g, 23701k, or 23701w of the Revenue and Taxation Code. ( ) A mobile home park association of a mobile home park that is situated in the [City, county, or City and County] . (3) Senior citizen organizations. (4) charitable organizations affiliated with a school district. (b) The application shall be in a form prescribed by the License official and shall be accompanied by a nonrefundable filing fee in an amount determined by resolution of the [Governing Body of the City, County, or City and County] from time to time. The following documentation shall be attached to the application, as applicable: (1) A certificate issued by the Franchise Tax Board certifying that the applicant is exempt from the payment of the Bank and Corporation Tax pursuant to Section 23701d of the Revenue and Taxation Code. (2) other evidence as the License official determines is necessary to verify that the applicant is a duly organized mobile home park association of a mobile home park situated in the [city, county, or City nd County]. Sec. .04. License Application: Verification. The license shall not. be issued until-the License-official has verified the facts stated in the application and determined that the applicant is qualified. Sec. _.. Annual Licenses. A license issued pursuant to this chapter shall be valid until the end of the calendar gear, at which time the license shall expire. A new license shall only be obtained upon filing a new application and payment of the license fee. The fact that a license has been issued to an applicant creates no vested right on the part of the licensee to continue to offer bingo for play. The [Governing Body of the City, County, or City and county] expressly reserves the right to among or repeal this chapter at any time by resolution. If this chapter is repealed, all licenses .issued pursuant to this chapter shall cease to be effective for any purpose on the effective date of the repealing resolution. Sec. _.0. Conditions of Licenure. (a) Any license issued pursuant to this chapter shall be subject to the conditions contained in Sections 326.3 and 326.4 of the Penal Code, and each licensee shall comply with the requirements of those provisions. (b) Each license issued pursuant to this chapter shall be subject to the following additional conditions ( 1 ) Bingo games shall not be conducted by any licensee on more than two days during any creek, except that a licensee may hold one additional game, at its election, in each calendar quarter. (2 ) The licensed organization is responsible for ensuring that the conditions of this chapter and Sections 326.3 and 326.4 of the Penal Code are complied with by the organization and its officers and members. A violation of any one or more of those conditions or provisions shall constitute cause for the revocation of the Agenda Item 11.a. Page 15 organi zation IF s license. At the request of the organization, the [Governing Body of the city, County, or city and county] shall hold a public hearing before revoking any license issued pursuant to this chapter. ( ) Nothing in this section shall require a city, county, or city and county to use this model ordinance in order to authorize remote caller bingo. (d) It is a misdemeanor for any person to receive or pay a profit,. wage, or salary from any remote caller bingo dame, provided that administrative, managerial, technical, financial, and security personnel employed by the organization conducting the bingo game may be paid reasonable fees for services rendered from the revenues of bingo games, as provided in subdivision (m), except that fees paid under those agreements shall not be determined as a percentage of receipts or other revenues from, or be dependant on the outcome of, the game. {e} A violation of subdivision {d} shall be punishable by a fine not to exceed ten thousand dollars ($10,000), which fine shall be deposited in the general fund of the city, county, or city and county that enacted the ordinance authorizing the remote caller bingo game. violation of any provision of this section, other than subdivision (d), is a misdemeanor. ( f ) The city, county, or city and county that enacted the ordinance authorizing the remote caller lingo game, or the Attorney General, may bring an action to enjoin a violation of this section. {g} No minors shall be allowed to participate in any remote caller bingo game. (h) A remote caller bingo dame shall not include any site that is not located within this state. (i) An organization authorized to conduct a remote caller bingo. garner pursuant to subdivision (b) shall conduct the game only on property that is owned or leased by the organization, or the use of which is donated to the organization. Nothing in this subdivision shall be construed to require that the property that is owned or leased by, or the use of which is donated to, the organization be used or leased exclusively by, or donated exclusively to, that organization. (j) ( 1) All remote caller bingo dames shall be open to the public, not just to the members of the authorized organization. (2) No more than 750 players may participate in a remote caller bingo game in a single location. ( ) If the Governor of California or the President of the United States declares a state of emergency in response to a natural disaster or other public catastrophe occurring in California, are organization authorized to conduct remote caller bingo games may, while that declaration is in effect, conduct a remote caller bingo game pursuant to this section with more than 750 participants in a single venue if the net proceeds of the game, after deduction of p rizes and overhead expenses, are donated to or expended exclusively for the relief of the victims of the disaster or catastrophe, and the organization gives the California Gambling Control Commission at least 10 days' written notice of the intent to conduct that game. ( ) An organization authorized to conduct remote caller bingo games shall provide the commission with at least 30 days' advance written notice of its intent to conduct a remote caller bingo game. That notice shall include all of the following (A) The legal name of the organization and the address of record of the agent upon whom legal notice may be served. (B) The locations of the caller and remote players, whether the property is owned by the organization or donated, and if donated, by Agenda Item 11.a. Page 16 whom. () The name of the licensed caller and site manager. ( D ) The names of administrative, managerial, technical, financial, and security personnel employed. (E) The name of the vendor and any person or entity maintaining the equipment used to operate and transmit the game. (F) The name of the person designated as having a fiduciary responsibility for the game pursuant to paragraph (2) of subdivision ( k )• () The license numbers of all persons specified in subparagraphs (A) to (F) , inclusive, who are required to be licensed. ( H ) A copy o f the local ordinance for any city, county, or city and county in which the game will be played. The commission shall post the ordinance on its Internet Web site. (k) (1) A remote caller bingo game shall be operated and staffed only by members of the authorized organization that organized it. Those members shall not receive a profit, wage, or salary from any remote caller bingo game. only the organization authorized to conduct a remote caller bingo game shall operate that game, or participate in the promotion, supervision, or any other phase of a remote caller bingo game. Subject to the provisions of subdivision (m) , this subdivision shall not preclude the employment of administrative, managerial, technical, financial, or security personnel who are not members of the authorized organization at a location participating in the remote caller bingo game by the organization conducting the game. Notwithstanding any other provisions of law, exclusive or other agreements between the authorized organization and other entities or persons to provide services in the administration, management, or conduct of the game shall not be considered al violation of the prohibition against holding a legally cognizable financial interest in the conduct of the remote caller bingo game by persons or entities other than the charitable organization, or other entity authorized to conduct the .remote caller bingo games, provided that those persons or entities obtain the gambling licenses, the key employee licenses, or the work permits required by, and otherwise comply with, Chapter ( commencing with Section 198 00) of Division 8 of the Business and Professions code. Fees to be paid under any such agreements shall be reasonable and shall not be determined as a percentage of receipts or other revenues from, or be dependent on the outcome of, the game. (2) An organization that conducts a remote caller bingo game shall designate a person as having fiduciary responsibility for the game. ( l ) No individual, corporation, partnership, or other legal entity, except the organization authorized to conduct or participate in a remote caller bingo game, shall held a legally cognizable financial interest in the conduct of such a game. - (m) An organization authorized to conduct a remote caller bingo g ame pursuant to this section shall not have overhead costs exceeding 20 p ercent of dross sales, except that the limitations of this section shall not apply to one - time, nonrecurring capital acquisitions. For purposes of this subdivision, "overhead costs" includes, but is not limited to, amounts paid for runt and equipment t leasing and the reasonable fees authorized to be paid to administrative, managerial, technical, financial., and security personnel employed by the organization pursuant to subdivision (d). For the purpose of keeping its overhead casts below 20 percent of gross sales, an authorized organization may elect to deduct all or a portion of the frees paid to financial institutions for the use and processing of credit card sales from the amount of dross revenues awarded for prizes. In that case, the redirected fees for the use and processing of credit care sales shall, not be included in '*overhead costs" as defined in the California Remote Caller Bingo Act. Agenda Item 11.a. Page 17 Additionally, fees paid to financial institutions for the use and processing of credit card sales shall not be deducted from the proceeds retained by the charitable organization. (n) No person shall be allowed to participate in a remote caller bingo game unless the person is physically present at the time and place where the remote caller bingo game is being conducted. A person shall be deemed to be physically present at the place where the remote caller bingo game is being conducted if he or she is present at any of the locations participating in the remote caller bingo game in accordance with this section. ( 1 ) An organization shall not cosponsor a remote caller bingo game with one o r more other organizations unless one of the following is true: (A) All of the cosponsors are affiliated under the master charter or articles and bylaws of a single organization. (B) All of the cosponsors are affiliated through an organization described in paragraph (1) of subdivision (b), and have the same Internal Revenue Service activity code. (2) Notwithstanding paragraph (1) , a maximum of 10 unaffiliated organizations described. in paragraph 1 of subdivision (b) may enter into an agreement to cosponsor a remote caller game, provided the game shall have not more than 10 locations. ) An organization shall not conduct remote caller bingo more than one day per weed. ( ) Before sponsoring or operating any game authori zed under paragraph (1) or (2), of the cosponsoring organizations shall have entered into a written agreement, a copy of which shall be provided to the commission, setting . forth how the expenses and proceeds of the game are to be allocated among the participating org anizations, the bank accounts into which all receipts are to be deposited and from which all prizes are to be paid, and how game records are to be maintained and subjected to annual audit. (p) The value of prizes awarded during the conduct of any remote caller bingo game shall not exceed 3 7 percent of the gross receipts for that game. When an authorized organization elects to deduct fees paid for the use and processing of credit card sales from the amount of dross revenues for that game awarded for prizes, the maxi -Mum amount of gross revenues that may be awarded for prizes shall not exceed 37 percent of the gross receipts for that game, less the amount of redirected fees paid for the use and processing of credit card sales. Every remote caller bingo game skull be played until a winner is declared. Progressive prizes are prohibited. The declared winner of a remote caller bingo game shall provide his or her identifying information and a mailing address to the onsite manager of the remote caller bingo game. Prizes shall be paid only by check no cash pies shall be paid. The organization conducting the remote caller bingo game issue a check to the winner at the time of the g ame, or may send a check to the declared winner by United States Postal Service certified mail, return receipt requested. All prize money exceeding state and federal exemption limits on prize money shall be subject to income tax reporting and withholding re quirements under applicable state and federal laws and regulations and those reports and withholding shall be forwarded, within 10 business days, to the appropriate state or federal agency on behalf of the winner. report shall accompany the amount withheld identifying the person on whose behalf the money is being seat. Any gaze interrupted by a transmission failure, electrical outage, or act of God shall be considered void in the location that was affected. A refund for a canceled game or games shall be provided to the purchasers. ) (1) The California Gambling Control ommissionshall regulate remote caller bingo, including, but not limited to, licensure and Agenda Item 11.a. Page 18 operation. The commission shall establish reasonable criteria regulating, and shall require the li ensure of, the oil wing: A) Any person who conducts a remote caller bingo dame pursuant to this section, including, but not limited to, an employee, a person having fiduciary responsibility for a remote caller bingo game, a site mana and a bingo caller. (B) Any person who directly or indirectly manufactures, distributes, supplies, vends, leases, or otherwise provides-supplies, devices, services, or other equipment designed for use in the playing of a remote caller bingo dame by any n nprofi.t organization. () Beginning January 31, 2009, or a later date as may be established by the commission, all persons described in subparagraph (A) B) may submit to the commission a letter of intent to submit an application for lic nsu.re. The letter shall .clearly identify the principal applicant, all categories under which the application will be filed, and the names of all those particular individuals who are applying. Each charitable organization shall provide an estimate of the frequency with which it plans to conduct remote caller lingo operations, including the number of locations. The letter of intent may be withdrawn or updated at any time. ( ) (A) The Department of Justice shall conduct background r4ound investigations and conduct field enforcement as it relates to caller bingo consistent with the Gambling control Act (chapter (commencing with Section 19800) of Division 8 of the Business and Professions code) and as specified in regulations promulgated by the commission. {B} Fees to cover background investigation costs shall be paid and accounted for in accordance with Section 19867 of the Business and Professions Code. () (A) Every application for a license or approval shall be accompanied by a nonrefundable foe, the amount of which shall be adopted by the commission by regulation. tion. (B) Fees and revenue collected pursuant to this paragraph shall be deposited in the California Bingo Fund, which is hereby created in the State Treasury. The funds deposited in the California Fund shall be available, upon appropriation by the Legislature, for expenditure by the commission and the department exclusively for the support of the commission and department in carrying out their duties and responsibilities under this section and Section 326.5. (C) A loan is hereby authorized from the Gambling Control Fund to the California Bingo Fund on or after January 1, 2009, in an amount of up to five hundred thousand doll rs. ( 0 , ) to fund operating, personnel, and other startup Costs incurred by the commission relating to this act. Funds from the California Bingo Fund shall be available to the commission upon appropriation by the Legislature in the annual Budget Act. The loan shall be subject to all of the following conditions (i) The loan shall be repaid to the Gambling control Fund as soon as there is sufficient money in the California Bingo Fund to repay the amount loaned, but no later than fire years after the date of the loan. (ii) Interest on the loan shall be paid from the California Bingo Fund at the rata accruing to moneys in the Pooled Money Investment Account. (iii) The terms and conditions of the loan are approved, prior to the transfer of funds, by the Department of Finance-pursuant to appropriate fiscal standards. The commission may assess and collect reasonable fees and deposits as necessary to defray the costs of regulation and oversight. (r) The administrative, managerial, technical, financial, and security personnel employed by an organization that conducts remote Agenda Item 11.a. Page 19 caller bingo games shall apply for, obtain, and thereafter maintain valid work permits, as defined in Section 19805 of the Business and Professions code. (s) Are organization that conducts remote caller bingo games shall retain records in connection with the remote caller bingo game for five years. (t) (1) All equipment used for remote caller bingo shall be approved in advance by the California Gambling Control Commission pursuant to regulations adopted pursuant to subdivision {r.} of Section 19841 of the Business and Professions Code. (2) The California Gambling control Commission shall monitor operation of the transmission and other equipment used for remote caller bingo, and monitor the game. (u) ( 1) As used in this section, "remote caller bingo game" means a game of bingo, as defined in subdivision {c} of Section 326. 5, in which the numbers or symbols on randomly drawn plastic walls are announced by a natural person present at the site at which the live g ame is conducted, and the organization conducting the bingo carne uses audio and video technology to link any of its in -state facilities for the purpose of transmitting the remote calling of a live bingo game from a single location to multiple locations owned, leased, or rented by that organization, or as described in. subdivision (o) of this section.. The audio or video technology used to link the facilities may include cable, Internet, satellite, broadband, or telephone technology, or any other means of electronic transmission that ensures the secure, accurate, and simultaneous transmission of the announcement of numbers or symbols in the game from the location at which the game is called by a natural person to the remote location or locations at which players may participatte in the game. The drawing of each ball bearing a number or symbol by the natural person calling the game shall be visible to all player's as the ball is drawn, including through a simultaneous lure video feed at remote locations at which .players may participate in the game.. ( 2 ) The caller in the live game must be licensed by the California Gambling Control commission. A game may be called by a nonlicensed caller if the drawing of balls and calling of numbers or symbols by that person is observed and personally supervised by a licensed caller. ( ) Remote caller bingo games shall be played using traditional paper or other tangible bingo cards and daubers, and shall not be played by using electronic devices, except card - minding devices, a described in paragraph (1) of subdivision (p ) of section 326.5. (4) Prior to conducting a remote caller bingo game, the organization that conducts.remote caller bingo shall submit to the commission the controls, methodology, and standards of game play which shall include, but not be limited to, the equipment used to- select bingo numbers and create or originate cards, control or maintenance, distribution to participating locations, and distribution to players. Those controls,-methodologies, and standards shall be subject to prior approval by the commission, provided that the controls shall be deemed approved by the commission after 90 days from the date of submission unless disapproved. (v) A location shall not be eligible to participate in a remote caller bingo game if bingo games are conducted at that location in violation of Section 326.5 or any regulation adopted by the commission pursuant to Section 19841 of the Business and Professions Code, including, but not limited to, a location at which unlawful electronic devices are used. (w) ( 1) The vendor of the equipment used in a remote caller bingo game shall have its books and records audited at least annually by an independent California certified public accountant and shall submit Agenda Item I I.a. Page 20 the results of that audit to the California Gambling Control Commission within 120 days after the close of the vendor's fiscal year. In addition, the California Gambling Control Commission may audit the boobs and records of the vendor at any time. {2} An authorized organization that conducts remote caller bingo dames shall provide copies of the records pertaining to those dames to the California Gambling Control Commission within 30 days after the end of each calendar quarter. In addition, those records shall be audited by an independent California certified public-accountant at least annually and copies of the audit - reports shall be provided to the California Gambling Control Commission within 120 days after the close of the organization's fiscal year. The audit report shall account for the annual amount of fees paid to financial institutions for the use and processing of credit card sales by the authorized organization and the amount of fees for the use and processing of credit card sales redirected from "overhead costs' and deducted from the amount of dross revenues awarded for prizes. ( ) The costs of the licensing and audits required by this section shall be borne by the person or entity required to. be licensed or audited. The audit shall enumerate the receipts for remote caller bingo, the prizes disbursed, the overhead costs, and the amount retained by the nonprofit organization. The commission may audit books and records of an organization that conducts remote caller bingo games at any time. ( ) If, during an audit, the commission identifies practices in violation of this section, the license for the audited entity may be suspended pending review and hearing before the commission for a final determination. . ( ) No audit required to be conducted by the commission shall commence before January 1, 2010. (x) (1 ) The provisions of this section are If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. ( 2) Notwithstanding ithstanding paragraph ( 1) , if paragraph (1) or ( ) of subdivision (u), or the application of either of those provisions, is held invalid, this entire section shall be invalid. (y) The commission shall submit a report to the Legislature, on or before January 1, 2012, on the fundraising effectiveness and regulation of remote caller bingo, and other matters that are relevant to the public interest regarding remote caller bingo. () The following .definitions apply for purposes of this section: (1) "Commission "` means the California Gambling Control Commission. (2) "Person" includes a natural person, corporation, limited liability company, partnership, trust, joint venture, association, or any other business organization. Agenda Item 11.a. Page 21 326.4. (a) Consistent with the Legislature's finding that card - minding devices, as described in ,subdivision (p) of Section 326.5, are the only permissible electronic devices to be used by charity bingo players, and in an effort to ease the transition tc remote caller bingo on the part of those nonprofit organizations that, as of July 1, 2 008, used electronic device's other than card - minding devices to conduct gazes in reliance on an ordinance of a city, county, or city and county that, as of July 1, 2008, expressly recognized the operation of electronic devices other than card -- minding devices by organizations purportedly authorized to conduct bingo in the city, county, or city and county, there is hereby created the Charity dingo Mitigation Fund. (b) The Charity Bingo Mitigation Fund shall be administered by the California Garbling Control Commission. {c} Mitigation payments to be made by the Charity Bingo Mitigation Funds shall not exceed five million dollars ($5,000,000) in the aggregate. (d) (1) To allow the Charity Bingo Mitigation Fund to become immediately operable, five million dollars ($5,000,000) shall be loaned from the accrued interest in the Indian Gaming Special Distribution Fund to the Charity Bingo Mitigation Fund on or after January 1, 2009, to make mitigation payments to eligible nonprofit organizations. Five million dollars ($5,000,000) of this loan amount is hereby appropriated to the California Gambling Control Commission for the purposes of providing mitigation payments to certain charitable organizations, as described in .subdivision (e). Pursuant to Section 16304 of the Government Code, after three years the unexpended balance shali revert back to the Charity Bingo Mitigation Funs. (2) To reimburse the Special Distribution Fund, those nonprofit organizations that conduct a remote caller bingo game pursuant to Section 326.3 shall pay to the California Gambling Control Commission an amount equal to 5 percent of the gross revenues of each remote caller bingo game played until that time as the full advanced amount plus interest on the loan at the rate accruing to moneys in the Pooled Money Investment Account is reimbursed. {e} (1) An organization meeting the requirements in subdivision (a) shall be eligible to receive mitigation payments from the Charity Bingo Mitigation Fund only if the city, county, or city and county in which the organization is located maintained official records of the net revenues generated for the fiscal year ending Tune 3 2008, by the organization from the use of electronic devices or the organization maintained audited financial records for the fiscal year ending June 30, 2008, which show the net revenues generated from the use of electronic devices. (2) In addition, are organization applying for mitigation payments shall provide proof that its board of directors has adopted a resolution and its chief executive officer has signed a statement executed under penalty of perjury stating that, as of January 1, 2009, the organization has ceased using electronic devices other than carol - minding devices, as described in subdivision (p) of Section 326.5, as a fundraising tool. (3) Each eligible organization may apply to the California Gambling Control Commission no later than January 31, 2009, for the mitigation payments in the amount equal to net revenues from the fiscal year ending June 30, 2008, by filing an application, including therewith documents and other proof of eligibility, including any Agenda Item I I.a. Page 22 and all financial records documenting the organization's net revenues for the fiscal year ending June 30, 2008, as the California Gambling Control Commission may require. The California Gambling Control Commission is authorized to access and examine the financial records of charities requesting funding in order to nfirm the legitimacy of the request for funding. In the event that the total of those requests exceeds five million dollars ($5,000,000), payments to all eligible applicants shall be reduced in proportion to each requesting organization's reported or audited net revenues fr rn the operation of electronic devices. Agenda Item I I.a. Page 23 THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item I I.a. Page 24 pRROY INCORPORATED * JULY ro, 19111 t+` MEMORANDUM To: CITY CO NCIL REDE 1ELOPMENT AGENCY BOARD of DIRECTOR FROM: ANGELA KRAETSCH, DIRECTOR of ADMINISTRATIVE SER ICES SUBJECT: FISCAL YEAR 2009-10 THIRD QUARTER / BUDGET UPDATE REPORT DATE: JUNE 22,2010 RECOMMENDATION: It is recommended the City Council /Agency Board: Approve detailed budget adjustments listed in the Td Quarter budget report • Approve Schedule A and Budget Shortfall Recommendations Approve (Deny) requests for additional appropriations in the General Fund. FINANCIAL IMPACT: The General Fund ending balance will be impacted by the approval of the recommended revenue and appropriation adjustments as follows: Projected Fund Balance at Mid Quarter Report: Increase in Revenue Increase in Expenditu Total Decrease to General Fund Balance Adjusted Fund Balance 6/30/2010 $2,1 28 $2 12,500 0 O $ 2 1 118,9 95 BACKGROUND: Each year, the City Council /RDA Board of Directors adopts a budget, which commits resources to the accomplishment of its policies. The Administrative Services Department routinely prepares quarterly budget updates for the City Council. Staff" would normally present a Third Quarter Budget report in May and a Budget Update report in July. The Third Quarter Budget report was delayed this year and combined with the Budget Update due to projected shortfalls that need to be addressed. Agenda Item 11. b. Page 1 CITY COUNCIL CONSIDERATION OF THIRD QUARTER /BUDGET UPDATE REPORT JUNE 22 2010 PAGE 2 The purpose of the City's Third Quarter /Budget Update report is to: Compare revenues received and expenditures read a to budgeted amounts to determin appropriate adjustments. Comment on any significant budget trends that will impact financial lannin . g Provide a link between the City budget, the financial records, and the indep financial audit. Compare current revenues and expenditures against the prior fiscal Y ear. ANALYSIS SIS of ISSUES: T h i rd Q rte r — Fly 2009 -1 At Third Quarter, overall expenditures are at % and revenues are at %. Staff is estimating that actual revenues will be approximately $460,000 less than the adopted 2009- a 10 budget. The ma i n decreases are �n Sales Tax, Trans ient Occupancy Tax (TOT), Children in Motion, Franchise fees and Expense recovery revenue. In addition, dine to recent layoffs, estimated unemployment costs will be approx $70,000 more than budgeted. Staff~ is recommending that this shortfall be addressed with salary savings due to several vacant positions, City Hall project savings, and departmental savings as shown on p a g e 5 in the attached Budget Report). A hold has been issued on many equipment purchases, travel and limited remaining expenditures to only those essential for the remainder of the y ear. The current b udaeted General Fund Balance for ,dune 30, 2010 is $2,11 8,995, an increase of $348 from the projected fund balance of $1,770,672 published in the FY 2009-10 Budget. The Fund Balance is projected to be at 10 of appropriations. Bud et u Pdate - Fly 2010-11 O n March 23, 2010, staff presented the Council with measures to address the Fiscal Year 2010-11 budget shortfall. When the current two -year budget was adopted, a shortfall of approximately $625,000 was projected for FY 2010-11. It was agreed to address the deficit in the second year of the budget after additional information regarding revenues was obtained and staff had more time to develop additional funding strategies. Updated projections have increased the expected deficit to approximately $693,000. The increase in the shortfall is due to a continued drop in projected safes tax revenues, delay of the opening of Hampton Inn, funds that were budgeted for a Federal grant for the Police School Resource Officer position that was not approved, and a decrease that has been experienced in the Children in Motion childcare program revenue. The following is a breakdown of the projected shortfall: Original shortfall $(625,000 TOT (50,000 Police Grant (80,000) Children in Motion (10,00 Building related permit fees 60, 000 New Cell Tower lease 1 Total projected shortfall $(693,000 Agenda Item 11. b. Page 2 CITY COUNCIL CONSIDERATION OF THIRD QUARTER 1 BUDGET UPDATE REPORT JUNE 22 2010 PAGE 3 Following is list of adjustments being requested to address the projected shortfall and additional appropriations requested by individual departments: Automotive shop — Increase of $2,250 in contractual services due to regulatory requ irements. City Council — An increase of $7,500 for the Centennial celebration. Police — A reduction of $40,000 for the animal control contract and $15,000 for reduction of Senior Police Officer classifications. Public Works — A decrease of $40,000 due to delay of filling a full- time engineering position. • Neighborhood Services — A net reduction of $5,000 from consolidating the position with the Police Parking Enforcement officer. • on- depart entarl — A decrease of $350,000 for budgeted City Hall improvements and a decrease of $12,000 for general liability coverage. Parks — A reduction of $55,000 due to a Maintenance Wo rker vacancy. All departments — a decrease of $213,000 related to renegotiated labor contracts; decrease in workers compensation costs; and suspension of management merit pay. This equals a net decrease of $720,250 in expenditures. The budget report assumes the Children in Motion committee recommendations to increase revenues are accepted by Council. There are additional adjustments being requested for various funds. They are listed on pages 17 and 18 of the Third Quarter /Budget Update Report. ALTERNATIVES: The following alternatives are provided for City Council consideration: 1. Approve the following Schedule A, and Budget Shortfall Recommendations included in the Third Q uarter/ Budget Update report; 2. Do not approve staff recommendations; 3. Modify staff recommendation and approve the schedule; 4. Provide direction to staff. ADVANTAGES: Staff conducted a review of City funds and is recommending budgetary adjustments. By approving this recommendation, the budget will remain balanced in Fiscal Year 2009-10 and Fiscal Year 2010 -11. Department staff is working on additional efficiency measures to further increase the General Fund Balance. Agenda Item 11. b. Page 3 ciTr COUNCIL CONSIDERATION OF THIRD QUARTER I BUDGET UPDATE REPORT JUNE 22 2010 PAGE 4 DISADVANTAGES: Eased on the recommendations, departmental budgets will continue to be constrained and will present a challenge to some accounts to maintain expenses within the budgeted amounts. ENVIROMENTAL REVIEW: No environmental review is required for this item PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Flail on Thursday June 17, 2010. The Agenda and report were posted on the City's website on Friday, dune 18, 2010. No public comments were received. Attachment Quarterly Financial Report Schedule A General Fund — Fund Summar Agenda Item 11. b. Page 4 City of Arroyo Grande Administrative Services Department THIRD QUARTER/ BUDGET UPDATE REPORT June 22, 2010 t� tD Cai } City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22,2010 Table of Contents Overview ..... ... ......rr.....•...................•rrrr.i aaaaa.■..rrrr..rr a..r a. r.......•...•.... a..................i.. r. a.r aarr.rr a..r a.... aa....................iirr ar............................. 3 S u n una ry K Po ints ..... rr a a a.rrr r. rarr a.. a... �.. .. + ... . ... 4.6 .... .rrairrrasrra. r a. r a. r a.. a. ....... ..a.....a. Third Quarter Budget Requests r.rrrrr a. . ..... ..+......•r aar ra.r ar aa.r aarrr a.. rr. r.. . +..+....... 4......... 6.... m at .. ....rrarra.raarr.r..........aaa i......... 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General - F und Su ry ..•.+ rrirr ............... ... ....... 6 rrriiirr arrr a.rrarr ar. aa a........ i.+. r. iiirr aai.. ..................rrrrrrraaa... 21 i3 �lrfi 0 �lrfi V r ir 2 City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22, 2010 we Overview The it "s 3rd Quarter Budget Update Deport is prepared to compare the revenues and expenditures occurring during the first nine months of the fiscal ye a gainst budgeted amounts to determine appropriate adjustments; to report adjustments that are needed in the se cond year of the to -ge budget when economic data becomes available; to account for salary and benefit negotiations; and to compare revenues earned and expenses made during the first nine months o the 2009-10 Fiscal Year against the FCC 2008 -9 figures. This information is provided in the following format: Schedule : The starting point is the audited 2008 -09 Fiscal Year ending fund balances, w hich is also the beginning Unreserved Fund Balances for the 2009 -10 Fiscal Year. Combining the beginning Unreserved Fund Balances with the estimated revenues, transfers, an appropriations adopted in the Annual Budget the 1st Quarter report, and the Mid Year report provides the estimated fund balances. General Fund - Fund summary: A summary of total revenues and expenditures. As a result of a comprehensive review, adjustments are recommended where actual receipts and disbursements are materially different from the budgeted. amounts. Although budget adjustments are reconunended across several City funds, the emphasis of the 3rd quarter Budget Update Report continues to be directed at the General Fund. The General Fund is deemed to be the most critical as it provides most services commonly associated with government (public safety, recreation, parks, building, and planning) and is limited primarily to tax -generated revenues. c� c� c� c� c� --4i Q City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010- FY 2010/2011 June 22,2010 Summary of Kev Points The total Citywide Fund Balance reported a June 30, 2009 was $35,651,725. This is an increase of approximately $727,555 over June 30, 200 The beginning General Fund balance is $2,191,544, which was an increase of $149,155 from the prior year and was 15 % of General Fund appropriations at year - end. The audited Fund Balances reported in the Comprehensive Annual Financial Report CAFR have been incorporated into the beginning fund balances on Schedule A. There is one adjustment to the beginning fund balances that is different from the CAFI . The adjustment was to subtract the Fined Asset balance of $9,670,367 from the Water Fund in order to reflect a more accurate cash fund balance. • The current projected available General Fend Balance for June 30, 2010 is $2,115,995. This fund balance is projected to be 14% of appropriations. The projected Fund Balance assumes revenues are received exactly as budgeted, all budgeted expenditures are made, and all capital transfers required by the CiP Program are completed. Historically, the General Fund has not been required to fund all budgeted capital transfers and expenditures at year-end are traditionally less than budgeted. • Staff is projecting a shortfall of approximately $460,000 this fiscal year. As shown below: 1 des Tax 130,000 2 TOT (100,000) 3 P olice Grant/ Cost Recovery (100, 4 Children in Motion revenue 1 00,000) 5) Franchise Fee (7000) D 6 Various revenue increases 100 7) Unemp e nse (6 0 , 000 ) Total 460 000 c� c� c� oo ir 4 City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22, 2010 Staff is r ecommending that this projected shortfall be addressed with the following cost saving measures: 1) City Hall project improvements $ (200,000) 2) Temporary Police vacancy (40,0()0) 3} Children in Motion salary expense ( 4) Maintenance Worker vacancy (20,000) 5) Neighborhood Services vacancy (5,000) 6) Engineering savings (15.,000) 7) Senior Police Officer savings (10,000) 8} Other* (130 Total 460 000 *The City Manager has issued a hold on equipment purchases, travel, and limited remaining e to only those items that are essential for the remainder of the year. In addition, the Pars maintenance staff has been maintainin the various assessment di stricts without charging to those Funds. The Administrative Services staff is w orking on determining g how much to charge the assessment districts based on the employee assigned to perform the maintenance and the number of hours. Third Ouarter Bud&et R q � Listed below are the recommended budget adjustments for unanticipated expenses and revenues. These adjustments are included on Schedule A as though they are completed; however, the City Council may reject any or all of these budget c> adjustment requests. c� General Fund Expenditures: c� Police department ! An increase of $ 10,000 to paint and equip a donated Police vehicle. This was approved by the Council on Larch 23, 2010. 9 City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22, 2010 mmwmw� Cit Attorne department - Staff is recd c nending tha $15,000 b tran sferred from Ikon - departmental saving (due to delaying the lease of City vehicles) to the Litigation Ikon- insured line stern to cover ongoing and pending personnel investigations, adversary proceedings, and litigation. IT department - Increase of $2,500 for Citizen Serve software. This i s being offset by a transfer -in from the Water Fund. This was approved by the Council on March 9, 2010. General Fund Revenues: Transfer-in - Increase of $2,500 from the Water Fund to pay for a portion of the Citizen Serve software. Other Funds Expenditure Adjustments: • Focal Sales Tax - an increase of $44,400 to cover an increase in the Streets Fund retiree medical costs. • Streets Fend - an increase of $4,400 due to the fact that retiree medical costs were budgeted incorrectly in the Sever and Water Funds. • Traffic Signal Fund - increase of $20,000 for the Fair Oaks Avenue Halcyon Road traffic signal approved by Council on March 9 , 2010. Water Neutralization Fund - Council approved an increase of $7,650 for the Wildwood Ranch development. RDA - Staff is requesting a reduction in the promotional account of $3,323 in order to avoid a negative budgeted fund balance in this Fund. CIP Fund - The following adjustments are being recommended by staff or were approved by the Council in the Third Quarter: c� 1 Increase in expenditures of $2,008 for the Porter Field backstop replacement, this was offset by a donation of $2,008 from Babe Ruth baseball. 2 Increase of $960 in expense recovery in various projects. 3 Increase of $20,000 from the Traffic Signal Fund for the Fair oaks Avenue/ Halcyon Road traffic signa CD Fr Z City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22, 2010 4) Transfer $8,770 of budgeted Sever funds for the west branch Street project to the Sever Master Plan project. 5) Transfer $100,000 of budgeted Sales Tax funds for the west Branch Street project to the Short Street narrowing project that is available due to savings from the bids received. 6) Sales Tax funds of $58,100 were transferred to west Branch Street from the Pavement Management program, upon bid opening only $51,100 is needed. Staff is recommending that $7,000 be returned to the Pavement Management program. 7) Cost savings of $10,800 of Sales Tax funds programmed for the West Branch Street project be transferred to the Myrtle Street project. 8) Transfer $66,500 from the Pavement Management program to the Myrtle Street project. 9 Transfer $23,400 cost savings from Pearwood Avenue project to Alpine Street project. 10 Program $13,884 received from developer for waterline improvements on Alpine Street and appropriate an additional $86,116 from the water Fund for this project. 11 It is currently estimated that $70,000 will be needed to update the water Master Plan. Appropriate an additional $37,200 for this project from the water Fund. 12 .Appropriate $1,500 from the water Availability Fund for the study of using the storm water in the wal�Mart assn. Sewer - decrease retiree medical by $200, this amount should have been budgeted in the Streets Fun Water Fend - decrease retiree medical by $4,200, this amount shoul have been budgeted in the Streets Fund. Increase of $37,500 for the water Master plan and an increase of $86,116 for the Alpine Street project. Water Availability Fund - Increase of $1,500 for the study of using storm water from the dal -hart basin. c� c� Other Funds Revenue Adjustments: Fire Protection Impact Fund - An increase of $800 due to an increase in building activity. c� • Park Development Fund - An increase of $1,200 d ue to an increase in building activity. � 7 City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22, 2010 c� c� CL 0) rMIL MO M NCr Streets Fund - An increase of $4,400 from the Local Sales Tax Fund due to an increase in retiree medical costs. CIP Fund - increase o $2,008 in donations from the Babe Ruth Baseball for the Porter Field backstop replacement. Increase of $960 in expense recovery in various projects. Increase of $20,000 from the Traffic Signal Fund for the Fair Oaks Avenue / Halcyon road traffic signal. Increase of $123,616 from the Water Fund for the Water Master Plan and the Alpine Street project. Increase of $1,500 from the Water Availability Fund for the study of using storm water from the Wal-Mart basin. General Fund Overview for Third Quarter Shorn below is an overview of the revenues, expenses, and transfers for Fiscal Fears 2008 -09 and 2009-10. Comparing the two fiscal years in this summary format readily shoves the impact of both increases and decreases in revenues and expenditures at 3rd Quarter. Revenues decreased b y $528,153 and expenditures decreased by $492,890. The impact is a red uction of the Fund Balance of $35,263. Ge neral Fun Revenues: 3rd Qtr Actual 3rd Qtr Transfers To tal Expenditures: 3rd Qtr Actual 3r (qtr Transfers Total Impact on Fund Ba lance FCC 2008 -09 7,178,130 1,661,810 8,839,940 90T203 148,532 10,035,735 $ (1 F' 2009 -10 variance 6,602,764 1,709,023 8,311,787 9,542,845 9,542,845 $ (1,231,058) (575,366) 47,213 (528J5 (344,358) (148,532) (492,890) $ {35,263) E City of Arroyo Grande Third Quarter/Budget date Report - FY 2009/2010 FY 2010/2011 June 22,2010 wCr General Fund Revenues Revenues are continuing to decrease due to the failing economy. This makes maintaining revenues to meet expenditures a challenge. With the year complete, the total General Fund revenue is at 57 %. The table shown elo presents a comparison of the top ten revenue accounts. The tale is followed by an analysis of changes in the revenues, both increases and decreases. Because the top revenue sources account for approximately 165% of total General Fund revenues, changes here can have profound impacts. In addition, the trends in these ten revenues can provide a general understanding of the total General Fund revenues. Title Sales & Use Tax Triple Flip - Sales Tax Property Tax Motor Vehicle License Fees Triple Flip - VLF Building Perrnits Children in Motion Franchise Fees Telecon nnunication Site Lases Transient Occupancy Tax Total 3rd Quarter- Current Fiscal Year B udget Actual Actual % Change 2,196,300 $ 1 56 $ 2,535,600 $ 1, 63,733 50 (24,409) 530,063 265,031 50 827,227 41 3,633 50 (148,602) 3 2 69 3,509,100 2,544,958 73% (458,561 30,0 00 18,691 62 81,000 31,374 39 % (12,683) 1,237 618,811 50% 1 631,714 50% (12,903) 145 65,406 45% 194,841 61,246 31% 4,160 422,000 230,752 55 442,000 299,428 68 (68,676) 660,000 282,169 43% 66800 275,050 41 % 7J19 175,000 450,000 $ 8,891,768 136,072 217,979 3rd Quarter -prior Fiscal Year Actual % Budget 78% 233,400 138,546 59% (2,474) 48 550 259,489 47% (41 $ 5,160 58% $ 10 $ 5 57% $ X758,539) 0 City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22, 2010 sales Tax - With seven months of revenue, Sales Tax is below budget a t 56 % ( 7/ 12 = 58 %). Sales tax is lower than the prior year due to a decline in sales activity. Staff had anticipated the majority of this decline and had lowered the budget accordingly. Triple Flip - sales Tax - This is lower than the prior year due to a decrease in sales tax revenue and an overpayment that was made in FY 2005 -. Property Tax - property tax should actually be showing a decline of $217,895. As men i ned in the' Mid Year report, the County had withheld $240,666 of property tax payments that were paid to the Mate. This amount was reimbursed to the City as part of the drop 1A securiti ati n program. Had this revenue been included in the property tax lire item this revenue source would be at 76%. staff had anticipated an overall decline in this revenue source and had budgeted accordingly. • Rotor vehicle License Fees - This revenue continues to show a decline due to the way the state calculates them administration costs, which are taken out before the VLF payments are apportioned to the cities. Staff anticipated this decrease and reduced the budget accordingly. • Building Permits - The City is seei a slight increase when compared to the prior year due to several remodeling projects and additions to existing homes as well as the building of new custom hones. However, it is still well below the 75% budget mark. Development related revenues as a whole are approximately $50,000 above budget. • C hildren in Motion - This revenue is showing a decrease of approximately $68,676. Due to the economic downturn, 0 this program is experieucg a drop in enrollment. staff has reduced expenditures in this program to help offset the drop in revenue. In addition, a committee has been formed to look at ways to reduce the subsidy in this program. Franchise Fees - This revenue source is showing a slight increase when compared with the prior year. This revenue source is below 75% due to one - time payments from PG&E and So Cal Gas that are received in April. Staff is c� projecting that this revenue source wi ll be approximately $70,000 below budget. The majority of this decrease is clue to a lower franchise payment made by southern California Gas Company So Cal Gas). This is due to the decrease in natural gas prices in 2009 as compared to 2008. Telecommunication site Leases - This revenue source is showing a sl decrease Then compared to the ear. p rior g g y This decrease is due to timing differences. Overall this revenue source is above 75%. �Cr 10 City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22,2010 c� �Cr Transient occupancy Tax - This is down when compared to the prior year. Staff anticipated some of this decrease due to the economy. However, due to the fact that staff had budgeted for the completion of the Hampton Inn combined with the overall drop in TOT, this revenue source is estimated to be approximately $100,000 below budget. * All other variances are within normal ranges. General Fund Expenditures Most departmental expenses are under the 75 budget marl with total Fiscal Year 2009 -10 expenses at 65 of budget. Individual department/ division differences between the current and prior fiscal year are highlighted in the table shown below: 3rd Quarter - Current Fiscal Year Title Budget City Manager 291,510 City Council 121,428 Retirees 128,000 Leg�s. and Info. Svcs 285,057 City Attorney 194,250 Administrative Services 677,402 C onununity Development 474,852 IT 315,331 Ikon Departmental 1,276,943 Police 5,950,941 F ire 1,786 Build & Life Safety 256,084 Public wo 857,016 Parks 1 Total $ 14,615,000 3rd Quarter -Prior Fiscal Year A ctual P % F u e t ^� 213,438 73% 509,552 67,161 55% 112,867 88,074 69 106,300 190,365 67% 176,288 117,859 61% 179,250 485,959 72% 537,084 322,357 68 504,080 250,970 80 257,307 598,732 47% 920,537 3 66° 5 1,258,099 70 1 1 74 t 656 68% 25 5, 083 559,084 5 % 1,111,195 1,313, 66% 2,303 $ 9,542,845 Actual $ 363,968 66,846 69,222 120,224 103,425 381,467 352,621 188,519 757,337 3 1,284,435 186,391 7'14,314 1,497,759 65 $ 14,720,851 $ 10,035, 71% 59% 65% 68% 58 % 1% 70% 73% 82% 67% 1% 73% 64 65% 68% Actual Change w $ (150,530) 315 18,852 70,141 14,434 104,492 (30,264) 62,451 (158,605) (46,162) (26,336) (11,735) (155,230) 184,71 ■ li (492,890 11 City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22,2010 • C ity Attorney - This increase is due to increased miscellaneous litigation costs in the current year. • Non-Departmental - the $158,605 decrease in Non- Departmental is due largely to a decrease in the liability insurance payment and that the General Fund did not provide funding to the Streets department this fiscal year. Instead, this funding was budgeted from the Local Sales Tax Fund. IT - This increase of $62,451. is due to the purchase of capital e quipment. • All other variances are due to the citywide reorganization and budget saving adjustments that were made during the budget process. OTHER FUNDS Local Use Tax Fund (Fund 218) This fund has been established to account for the 1 cent sales tax increase that was approved in November 200 6. with seven months of Sales Tax revenue, this revenue source is above the budget at 0 (7/ 12=58%). The estimated fund balance in this fund is $168,887, which is % of appropriations. Staff is requesting a transfer of $4,400 to the Streets Fund to fund unbudgeted retiree medical costs. Redevelopment elopment Agency (Fund 284) A s part of the recent Mate Budget revisions, the State required a n E RAF take away from Redevelopment Agencies. The impact to the Arroyo Grande RDA was $431,528. This amount was paid to the SLO County A uditor-Controller on May o, 2010. The California Redevelopment Association (CRA) is still in the process of challenging this take away. Staff is requesting a decrease of $3,323 in appropriations in order to balance this Fund. Therefore, the Redevelopment Agency ( R D A) fund has an estimated zero fund balance. c� IP (Capital Improvement Program) Fund Fund 350) The procedures of the IP re quire that revenues equ ex in this fund, which means the fund does not typically � P p typ y have a fund balance at year -end. If additional expenses are encountered in completing a project, funding must be found to match the expenses. In reverse, w hen additional revenues are found, the scope of the project can be e previous funding returned to other funds, or revenues returned to the source. Adjustments to the CIP are explained on M Cr pages 6 thru 8 of this retort. 1 City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22,2010 Sewer Fund (Fund 61 The Sewer Fund is projected to have a fund balance of approximately $187,810 (Schedule A). A new water and seer rate study was approved by the Council on June 23, 20. The approved rate increases, which cover operations, capital outlay, and reserves, will ensure that the Sever Fund does not have a negative fund balance. Staff is requesting a decrease of $200 in appropriations. The details for this adjustment are listed on page 7 of this report. Water Fund (Fund 640) The Water Fund is projected to have a cash fund balance of approximately $1,471,034 at June 30, 2010. This is a decrease w hen compared to prior years. This is due to the high costs of several large water projects that are being funded by the Water Fund, such as the construct of reservoir no. 6 ($527,614) and the waterline in stallation o n Chilton and El Camin ($585,100). In the past, staff was able to use development i mpact revenue to help offset these capital improvement costs, however, with the reduction in development these fees have decreased dramaticall r . Staff is requesting a net increase of $119,416 in appropriations. The details for these appropriations are listed on page 7 of this report under Third Quarter Budget Requests. c� c� c� c� ft-4 Cr 13 City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22,2010 BUDGET UPDATE On March h 23, 2010, staff presented the Council with measures to address the Fiscal Year 2010 -11 budget shortfall. When the current two-year budget was adopted, a shortfall of approximately $625,000 was projected for FY 2010 -11. It was agreed to address the deficit in the second year of the budget after additional information ormation regarding revenues was obtained and staff had more time to develop additional funding strategies. Updated projections have increased the expected deficit to approximately $693,000. The increase in the shortfall is due to a continued drop in projected sales to revenues, delay of the opening of Hampton Inn, funds that were budgeted for a Federal grant for the Police School Resource Officer position that was not approved, and a decrease that has been experienced in the Children in Motion childcare program revenue. Original Shortfall $ (625,000) TOT o,000 Police Grant o,000 Children in Motion (10,000) Building related permit fees 6 0,00 0 New Cell Tower lease 12,000 Total projected shortfall $(693,000 The following measures are proposed to address the shortfall; the majority of which were previously reviewed and approved by the Council at the March 23rd m eti g. 1 Due to the approved plan to relocate all staff to the former Farm Credit building, improvements to City Hall will no longer e necessary. This will enable the City to de- program $ 550 , 000 ire General Fund monies for this project. g It is projected that $200,000 will be necessary to address the decrease in revenues in FY 2009 -10. The remainder will not be carried over to FY 2010 -11. Therefore, a portion of the excess fund balance in FY 2009 -10 will be used to balance the budget in FCC 2010 -11. c.Q 2 Labor contracts were renegotiated in an attempt to delay the majority o increases ncreases budgeted in FCC 2010 -11. 00 Cr 14 City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22,2010 3 A recent vacancy has occ urred in a Water Services Maintenance Worker position. A Parks Maintenance Worker has been transferred to fill the vacancy. A portion of the Building Maintenance Worker's tune, an increase in part -time hours, and contract maintenance services wi address the reduced Parks maintenance. 4) The recommended budget adjustments assume the recommendations of the Children in Motion Committee will b e approved by the Council and reduce the projected subsidy to $10,000. 5) A decrease is proposed in engineering services by reducing contractual services and delaying filling of a full -time Engineerin Associate position by maintanun i t as a part -time positron. 6) Efforts with the County regarding annual services costs are projected to result in a $40,000 decrease to the annual services b udget. 7) It is proposed to maintain a vacancy in the Neighborhood Services Coordinator position by reassigning code enforcement responsibilities to the Police Department and consolidation with the Parking Enforcement Officer position. 8) The Police Department is working on reducing the number of officers classified as Senior Police Officer. This will not reduce the number of Police Officer positions. 9) It is proposed to temporarily suspend the management merit pay program. 10 Workers' compensation costs are projected to decrease b $18,000 in FY 2010 -11. 11 Liability insurance costs are p rojected to decrease by $12,000. 12 The City has been approached by V erizon to construct a new cell phone tower. The projected revenue for this i $12,000 for half a year. c� c� c� c� W Cr 1 City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22, 2010 Budget Update Requests for Fiscal Year 2010 -11 Therefore, these and other changes result in the following recommended amen dments to the FY 2010 -11 budgets. General Fund Expenditures: a Automotive shop - Increase of $2,250 in contractual services due to regulatory requirements. City Council - An increase of $ 7,500 for the Centennial cel ebration. Police - A reduction of $40,000 for the animal control contract and $15,000 for reduction of Senior Police officer classifications. Public Works - A decrease of $40,000 due to delay of filling a full- time engineering position. Neighbor services - A net reduction of $5,000. Non- departmental - A decrease of $350, fo r budgeted City Fall improvements and a decrease of $12,000 for general liability coverage. Parks - A red uction of $55,000 due to a Maintenance Worker vacancy. All departments - a decrease of $2 13,000 related to renegotiated labor contracts; decrease in workers compensation costs; and suspension of management merit pay. This equals a net decrease of $720,250 in expenditures. General F und Revenues: c� Telecommunication site Lease - An increase of $12,000 for half a year of revenue for a new cell tower. c� 9 TOT - A decrease o $85,000 due to the d elay in the opening of Hampton Inn. � g p c� Expense Recovery - Police - A decrease of $80,000 clue to not receiving an anticipated grant. • children in Motion - A - decrease of $10 ,000 due to drop in enrollment and an increase in fundraising activities to CD Cr offset any remaining subsidy. 1 City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22, 2010 B uilding Related Fees (various) - Increase of $60,000 in several bu ilding related fees due to an anticipated increase in b uilding activity. Other Funds E xpenditure Adjustments: Lopez Fund - A decrease of $109,980 due to a decrease in the Zo 3 2010 --11 b udget. Sewer Fund - A decrease of $300 due to a decrease in worker's compensation; a decrease of $4,800 due to renegotiated labor contracts; an increase of $3,300 for bank fees; increase of $3,000 in contractual services; and an increase of $21,230 for the Sewer Faster Plan. Water Fend - A decrease of $13,700 due to a decline in the Zone 3 2010 -11 budget; a decrease of $1,100 due t decrease in corker's compensation costs; increase of $95,300 in contractual services for consulting, monitoring services, engineering, a temporary maintenance worker, and purchase of Oceano water; an increase of $12,000 for maintenance f machinery and equipment; increase of $8,000 for chemicals; increase of $2,000 in machinery and equipment; and a decrease of $82,600 due to renegotiated labor contracts and a Maintenance Worker vacancy. Streets Fund - A decrease of $900 due to a decrease in worker's compensation and a decrease of $62,200 due to renegotiated labor contracts and a Maintenance Worker vacancy. I - An increase of $88,760 for the State take array. RDA Set Aside Fund - A decrease of $50 due to a decrease in w orkers compensation. 9 Water Neutralization Fund - A decrease of $100 due to a decrease in worker's compensation costs and an increase of $246,000 for operating costs that were not budgeted in the 2009-10 & 2010 -11 Biennial B udget. This includes the b udget for landscape irrigation surveys, plumbing retrofit program, public education workshops and the City's rebate program. c� 9 Focal Sales Tax Fund - An increase of $5,801 to find the new Fire JPA. a a CIP Fund -- The following adjustments are being recommended by staff: 1 Transfer $132,600 from the Pavement �' Management p ement ro am to the l ine Street project. c� � r-J M-' 2 Appropriate an additional $21,230 from the Sewer Fend for the Serer Raster Plan. Cr 1 City of Arroyo Grande Third Quarter/Budget Update Report - FY 2009/2010 - FY 2010/2011 June 22, 2010 Attachments brief overview o f the attache. schedules is provided to inform the reader of the purpose of each schedule. Sche dule - Fund Balance. This schedule is p rovided to incorporate prior year fund balance into the current year and to summarize the 2009/10 budget adopted by the City Council. This schedule includes adjustments that we incorporated in the Mid-Year Bu dget report and lists the current requested a justm nts in total. General Fund - Fund Summary -- This schedule provides a summary of total re venues an expenditures. c� c� c� c� N� NCr IT All Funds Operating Budget City of Arroyo Grande Fund Balance - Control 71178,130 2009/10 Adopted Budget Schedule General Fund 010 General Fund: Total Unreserved ` Fund Balance Original Adjustment Operating Operating July 1, 2009 Revenues to Revenues Transfer In _ T ransfer Out Estimated Total Unreserved FY 2008 -09 Budgeted Adjustments to Fund Balance Carryovers Appropriations Appropriationsl June 30, 2010 $2,191,544 Special Revenue Funds:' $366,182 210 Fire Protection impact Fees $95,658 211 Public Access Television $2 ,118 f 995 212 Police Protection Impact Fees $10,623 213 Park Development Fees $0 214 Park Improvement Fees + 215 Recreation Community Center 58,672 216 Grace Lane Assessment District 0 217 Landscape Maintenance District 35,000 218 Local Use Tax Fund 46,718 219 Parkside Assessment District 0 220 Streets 0 221 Traffic Congestion Relief 657,185 222 Traffic Signal 0 223 Traffic Circulation 0 224 Transportation Facility Impact 395,094 225 Transportation 0 226 Water Neutralization Impact 0 230 Construction Tax 41,985 31 Drainage Facility 0 232 In-Lieu Affordable Housing 0 233 In -Lieu Underground Utility 30,294 241 Water Availability Fund 0 250 CDBG Grant Funds 5,000 271 State COPS Bloch Grant tD 4 Redevelopment Agency N 85 Redevelopment Set Aside W 0 Total Special Revenue Funds Total Unreserved ` Fund Balance Original Adjustment Operating Operating July 1, 2009 Revenues to Revenues Transfer In _ T ransfer Out Estimated Total Unreserved FY 2008 -09 Budgeted Adjustments to Fund Balance Carryovers Appropriations Appropriationsl June 30, 2010 $2,191,544 $11,894,470 $366,182 $2,281,800 $550,000 $95,658 $13,589,467 $379,876 $2 ,118 f 995 $10,623 $12,7 $8 00 $0 $6}777 $0 + $0 $ 17,346 *346 58,672 46,000 0 0 0 0 35,000 0 69,672 46,718 1 0 0 0 0 0 0 48,418 657,185 35,000 1,200 0 207,925 0 0 0 485,460 395,094 20,400 0 0 404,729 0 0 0 10,765 41,985 7 0 0 15,000 0 0 0 28,785 30,294 9,500 0 0 0 0 5,000 0 34,794 47,094 6,800 0 0 2,900 0 3 0 47,094 1,260,037 1,590,0[]0 0 0 2,526,659 0 154,500 0 168,878 172,101 57,700 0 0 0 0 8,000 0 221,801 0 294,500 0 425,100 0 0 760,900 (41,300) 0 106,253 162,140 (7,748) 0 200,000 0 0 0 60,645 417,623 10,000 0 0 98,570 0 0 0 329,053 24,783 2,000 0 0 5,434 0 0 0 21,349 2,813,243 55,000 0 0 1,313,633 0 0 0 1,554,610 0 248,962 (106,100) 0 135,800 0 7,000 0 62 695,421 26,400 0 0 45,000 61,069 318,130 35,150 262,472 3 0 0 0 0 0 0 0 3,189 11,967 600 20,000 0 32,076 0 0 0 491 921,202 300 0 0 0 0 4,200 0 917,302 101,213 0 0 0 0 0 0 0 101,213 1,826,5% 41,000 0 0 343,369 0 0 25,000 1,499,227 0 0 254,687 0 0 149,069 0 105,618 0) 72,387 101,000 0 0 0 71,272 100,00 0 2,115 1,321,196 1,118,000 0 0 1,288,354 0 683,050 467,792 0 2,891,112 340,000 0 0 63,700 995,000 1,432,940 5,000 734,472 $13,925,988 $4,181,502 162,839 $425,100 $6,689,926 $1,276,410 3,512,620 $597,260 $6,619,213 1 F C it of Arroyo Grande Fund Balance Control All Funds Operating Budget 7 2M/10 Adopted Budget Schedule A Estimated Total Total Unreserved Unreserved Fund Balance Original Adjustment Operating Operating FY 2008 -09 Budgeted A djustments to Fund Balance July 1, 2009 Revenues to Revenues Transfer In Transfer Out Carryovers A pprop riations Ap propriationsl June 30, 2010 Capital Project Funds: 350 Capital Improvement Fund 0 $1,564,965 $3,205 $9,627,200 0 $7,344,241 $6,988,150 $65 0 Total Capital Project Funds $0 $1,564,965 $3,205,419 $9,627,200 0 $7,344,241 $6,988,150 $65,193 $ Enter rise Funds: 612 Sewer $475,556 $591,600 '$0 $0 $846,563 0 $316,883 $15,900 $187,810 634 Sewer Facility 520,908 12,000 0 0 422,985 0 0 0 109,923 640 Water Fund 3,227, 2,976,600 0 0 2,937,781 3,861 1,776,193 14,800 1,471,034 641 Lopez Water 3,417 } 696 3,246,300 0 0 327,400 0 2 0 3,475,718 642 Water Facility 924,392 30,000 0 0 408,345 0 0 0 546,047 Total Enter Funds $8 $7,156,500 0 0 $4,943,074 $3,861 $4,953,954 $30,700 $5,790,531 Trust Land A u 1. 751 D owntown Parking $14-2,242 $11,600 $0 $0 $151,100 $0 $3,100 ($358) 0 Total Trust & Agency F $142,242 $11,600 $0 $0 $151,100 $3, 100 ($358) 0 Grand Total All Funds J 1 , mjuu :01 , o luu zpa, u,ll V N � 44h Cr 2 21 GENERAL FUND - FUND SUMMARY FUND: 010 GENERAL FUND FISCAL YEAR 2008 -09 BIENNIAL BUDGET 2006 -07 2007-08 ORI AMENDED 2009 -1 2010 -11 ESTIMATED REVISED ITEM ACTUAL ACTUAL BUDGET BUDGET ACTUAL, ACTUAL BUDGET Be ginning Fun Balance 2 . 1,808,404 1 2 + 2,842 } 389 2,042,389 2 2,468 Rev enues: R evenues 1 12,304,7,55 13,424, 12,425,973 12, 11,860,652 10,549,8711 Transfers In 1,263,951 1 400300 2,221,383 2,215 2,281,800 2,365,200 Total Revenues 13,128,214 14,206,697 15,427,885 14,647,356 14,322,290 14,142,452 12,915,070 Expenditures: Salaries and Benefits 10,719,723 11,1305 11,586,190 11,517,222 10,848,358 10,854,989 9,166,620 Current E 2,786,357 2,599,428 2,867,620 2 2 2 2,382 Debt Service 25, 068 12,534 - 124 122,501 145, 160,180 Eq uipm ent Re 288, 204,406 274,280 285,640 718,887 338,697 102,280 Transfers Out (280,880) 20,990 60,700 203,119 104,881 - 1,453,489 Capital Transfers 140, 4 1 806 38,700 - - Total E 13,678 13,972,712 14,827,490 14,695,250 14,173,135 13,865,001 13,265,070 Total Op erating Increases (Decreases) - (550,674) - - - -- - • YiliiY9YYi •YYi.PY�1��P1�1•.•i.l�•.IYY 233, ' -' -- -'- 600,395 - (47, 894) 149,155 277,451 ^ITII (350,000) 111111 Audit Adjustments to Fun Ba - - - - - Total Adjustments to F Balance (550,674) 233,985 600,395 (47, 894) 149,155 I I 277,451 I I I I I ■11.1. (350,0001 Ending F un d Bal ance 1, 2 ,042 , 389 2,642 1,994,49,E 2,191,544 2, 468,995 2,118,995 Deserve f or C arry -Over Of Appro X195,892) - - - . (89,561) .... 111111 .1.11111.. 11 ■1 ■ I■ CL I 0 Avai F und Balance 1,612,512 1,952,828 2,642,784 1 2 $ 2,468,995 2,118,995 a ^ /Y V C 21 THIS PAGE INTENTIONALLY LEFT BLANK Agenda Item II.b. Page 26 ARROY O 0 ▪ IDCORPOOATED Y T ▪ JULY ID, 1811 * c 44 / FORN MEMORANDUM TO: CITY COUNCIL FROM: ANGELA KRAETSCH, DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: SUPPLEMENTAL INFORMATION AGENDA ITEM 11.b. — JUNE 22, 2010 CITY COUNCIL MEETING FISCAL YEAR 2009 -10 THIRD QUARTER / BUDGET UPDATE REPORT DATE: JUNE 21, 2010 There was an inadvertent error on page 16 of the Third Quarter /Budget Update report (agenda page 20). The amount of Transient Occupancy Tax (TOT) decrease should be $50,000. i 1A R0 � IP W OOP RATE Jmy 10, loll O N MEMORANDUM To: CITY COUNCIL FROM: : STE E I ADAMS, CITY MANAGER SUBJECT: CONSIDERATION of APPOINTMENT of VOTING DELEGATE AN ALTERNATE FOR THE LEAGUE of CALIFORNIA CITIES ANNUAL CONFERENCE DATE: JUNE 2, 201 RECOMMENDATION: ATIOI : It is recommended the City Council appoint one Council Member as the voting delegate and up to two Council Members as the alternate voting delegates for the League of California Cities Annual Conference. FINANCIAL IMPACT: The only costs associated with this action are costs for attendance at the Annual Conference, which are included in the FY 2010 -11 Budget. This year's League of California Cities Annul Conference is scheduled to take place September 15-17, 201 o in San Diego at the convention Center. One important activit of the Conference is the annual business meeting, to be held o Friday, September 1 at 3 :00 p.m., when the membership takes action on Conference resolutions, Designated voting delegates or their alternates) registered to attend the Annual Conference constitute the League's General Assembly. ANALI IS of ISSUES: Annual Conference resolutions guide the League and its members in their efforts to improve the quality, responsiveness and vitality of local government in California. League bylaws state that "any official of a Member city may, with the approval of the City Council, be designated the City's designated voting delegate or alternate delegate to any League meeting.$$ Thus far, Mayor Ferrara, Mayor Pro Tern Guthrie, Council Member Fellows, and Council Member Ray are registered to attend the conference. {Mayor Ferrara also currently serves on the League of California Cities Board of Directors and has been appointed by the City Council as the Council's liaison to the League of California Cities. Agenda Item II.c. Page 1 CITE COUNCIL CONSIDERATION of APPOINTMENT of VOTING DELEGATE AND ALTERNATE FOR THE LEAGUE of CALIFORNIA CITIES ANNUAL CONFERENCE JUNE 22 2010 PAGE 2 ALTERNATIVES: ES: The following alternatives are provided for the Council's consideration: 1 Appoint one Council Member as the voting delegate and up to two Council Members as the alternate voting delegates for the League of California Cities Annual Conference; or 2 Provide staff with other direction. ADVANTAGES: Participation in the General Assembly enables the City to impact issues that are important to City government and guide the League of California Cities' activities, assists the League of California Cities in their efforts by ensuring direction is representative of all member cities, and helps the City to obtain support for resolutions that may be proposed by the City or important to the City in the future. DISADVANTAGES: No disadvantages have been identified. ENVIRONMENTAL REVIEW: IEW: No environmental review is required for this item. PUBLIC INFORMATION AND COMMENTS: The agenda was posted in front of City lull on Thursday, June 17, 2010 and on the City's website on Friday, June 18, 2010. Attachment: 1. June 4, 2010 League of California Cities Memorandum Regarding Voting Delegates Agenda Item II.c. Page 2 ATTACHMEI T I 14 K S TREFT SACRAMENTO, 95814 pli: (91 6) 658- F: (9 1 ) 658 - 8240 � L F EAGUE CITIES WV/W. AC]T1 Council Action Advised by August 20, 2010 June l TO: Mayors, City Mana ers and City Clerks RE: DESIGNATION O VOTING DELEGATES AND ALTERNATES eacwue of California Cities Annual Conference — September 15-17 — San Diego ap The Leagu 2010 Annual Conference is scheduled for September 15 -17 in San Diego. An im ortant p art of the Annual Conference is the Annual Business Meeting at the c General Assembly), scheduled for 3:00 p.m., Friday, September 17, at the San Diego Convention Center. A t this meeting, the League membership considers and takes action on resolutions that establish League policy. In order to vote at the Ann ual Business Meeting, your city council must designate a voti d elegate. Your city may also appoint up t two alternate voting delegates, one whom may vote y in the event that the designated voting delegate 'is unable to serve in that capacity. Please take care when selecting you c it y 's del e g ates, s travel and attendance could be issue for those y w ho observe Yom Kippur. Please complete the attached voting Delegate form and return It to the League"s office no later than Friday, August 20, 2010. This will allow us time to establish voting delegate records prior to the conference. Please mote the following procedures that are intended to ensure the integrity of the voting gp process at the Annual Business Meeting. Action by Council Required, Consistent with League bylaws, a city's voting delegate and up to to alternates must be d esignat e d by the city council. when completing the attached Vo ting ele ate form, p lease attach either a go of the council resolution that reflects the council action taken or have your city c or may siEM the form affirming that the names p rovided are those selected by the city council. Please note that design the voting deleg and alternates must be done by citv council action and cannot be accompho shed by individual action of the mavor or citv man ajzE alone. Conference Registration Required, The voting delegate and alternates must be reg istered to attend the conference. They need not register for the enure conference, they may register for Friday . only. In order to cast a vote, at least one person must be present a t the Business Meeting and in possession of the voting delegate card. doting delegates and alternates need to p ick u their conference badges before signing in and picking up p - re- Agenda Item II.c. Jam, 1197 M Page 3 the voting delegate card at the Voting Delegate Desk. This will enable there to receive the special sticker on their name badges that will admit there into the voting area during the Business Meeting, Transfern*ng Voting Card to ton- Designated Individuals Not Allowed. The voting delegate card may be transTed freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the Business Meeting, they may not transfer the voting card to art of er city official. Seating Protocol during General Assembly. At the Business Meeting, 'individuals with the voting card will sit wn a separate area. Admission to this area will be limited to those individuals with a special sticker on their name badge identifying there as a voting delegate or alternate. If the voting delegate and alternates wish to sit together, they must sign in at the Voting Delegate Desk and obtain the special sticker on their badges. The Noting Delegate Desk, located in the conference registration area of the San Jose Convention Center, will be open at the following tunes: Wednesday, September 15, 9:00 .m.; Thursday, September 16, 7:30 a.m.; and September 17, 7:30 a.m. The voting Delegate Dcsk will also be open at the Business Meeting on Friday, but not during a roll call vote, should one be undertaken. The voting procedures that will he used at the conference are attached to this memo. Please share these procedures and this merno with your council and especially with the individuals that your council designates as your city's voting delegate and alternates. Once again, thank you for completing the voting delegate and alternate forte and returning it to the League office by Friday, August 20th. If you have questions, please call Mary McCulloug at 91 658 -8247, Attachments: 0 20 10 Annual Conference voting procedures 0 voting Delegate/Alternate Form Agenda Item II.c. Page 4 r 1 400 K Street, Suite 400 a Sacramento, California 95814 Phone: 916.658.8200 Fax: 916.658.8240 F CALI F RN 1A vwrwvwr.cacitie .erg CITIES Annual Conference Voting Procedures 2010 Annual Conference One City one vote. Each member city has a right to cast one vote on matters pertaining to League policy. Designating a City Voting Representative* prior to the Annual Conference, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the Voting Delegate Form provided to the League Credentials Committee. 3. registering with the Credentials Corer ittee. The voting delegate, or alternates, may pick up the city's voting card at the Voting Delegate Desk Mn the conference registration area. Voting delegates and alternates must sign in at the Voting Delegate Desk. Here they mill receive a special sticker on their name badge and thus be admitted to the voting area at the Business Meeting. 4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city s voting card by providing a signature to the Credentials Committee at the doting Delegate Desk, may sign petitions to initiate a resolution. 5 . Voting. To cast the citys vote, a city official must have in his or her possession the city's voting card and he registered with the Credentials Con mil to . The voting card may be transferred freely between the voting delegate and alternates, but may not be transferred to another city official wbo is neither a voting delegate or alternate. 6. Voting Area at Business Meeting. At the Business M eeting, individuals with a voting card will sit in a designated area. Admission will be limited to those individuals with a special sticker on their name badge identifying there as a voting delegate or alternate. 7. Resolving Disputes. In case of dispute, the Credentials Committee will determine the validity of i atu a on petitioned resolutions and the right of a city official to vote at the Business Meeting. Agenda Item II.c. Page 5 LEAGUE -�„ OF CALI FPLNi C I T I E S CITY: 2010 ANNUAL IF RENC DELEGATE/AL VOTING M Please complete this form and return It t the League office by Friday, Au ust 20, 2010. Forms not sent b this deadline may be submitted to the noting Delegate Desk located in the Annual Conference Registration Area. Your city council may designate one V tin deie2ate and up to two alternates. In order to vote at the Annual Business Meeting cner l As crnhly , voting delegates and alternates must be designated by your city council. Please attach the council resolution as proof of designation. As are alternative, the Mayor or City Clerk may sign this form, affirming that the designation reflects the action taken by the council. Please note: Voting d elegates and alternates will he seated in a separate area at the Annual Business Meeting. Admission to this designated area wi h e limited to individuals voting delegates and alternates) who are identified with a special sticker on their conference badge. This sticker can b e obtained only at the Voting ]delegate Desk. I, VO'T'ING DELEGATE Name: Title: 2. VOTING DELEGATE - ALTERNATE 3, VOTING DELEGATE - ALTERNATE Name: Name; Title: Title: PLEASE ATTACH COUNCIL RESOLUTION DESIGNATING VOTING DELEGAT AND ALTERNATES. OR ATTEST: I affirm that the information provided reflects action by the city council to designate the voting delegate and alternates. Name: E-mail Mayor or Cit Cl ( circ le one) Date: (signature) Please cony lete and retumby Friday Au ust 20 to: League of California Cites ATT 9. Mary McCullough 1400 K Street Sacramento, CA 95814 Phone: 'AX: (9 6) 6 E -mail: : m c cul l one @ cac� ti . (916) 658 -8247 otingDcletcUttcrI o .doc Agenda Item II.c. Page 6 INCO R"RATED JK A&Y 10. 1911 r FOR MEMORANDU To: CITY COUNCIL FROM: KELLY WETMORE, DIRECTOR of LEGISLATIVE AND INFORMATION SER ICESMITY CLERK �, SUBJECT: REVIEW of COUNCIL APPOINTMENTS To REGIONAL AND LOCAL BOARDS, COMMISSIONS, COMMITTEES AND SUBCOMMITTEES DATE: JUNE 229 2010 R ECOMMENDATION: It is recommended the City Council review the current list of appointments to those regional and local boards, commissions, and committees with Council representation, male appointments to vacant positions, and approve reassignments as desired. FINANCIAL IMPACT: There is no fiscal impact from this action. BACKGROUND: In December 2008, following the General Municipal Election, the Council made appointments to the various regional and local boards, commissions, and committees that have Council representation. Earlier this year, Ed Arnold resigned from the City Council, creating an unscheduled va on the Council, and thereby creating vacancies on several of the regional agency boards, commissions, and committees. Council Member Ray r eras subsequently appointed to fill his seat to complete his term through December 2012. ANALYSIS of ISSUES: The Council maces appointments to the various regional and local boards, co mmissions, and committees that require Council representation. The appointments list, which shows the existing appointees and vacancies, is attached for the Council's review. Each of the groups listed either requires a member of the Council as the primary representative and alternate, or that has traditionally been the practice. The appointments list also identifies the specific b the frequency of meetings, the day, time, and location of the respective meetings, the staff contact if applicable, and any requirements regarding the appointment. Agenda Item II.d. Page 1 CITY COUNCIL REVIEW IE11 of COUNCIL APPOINTMENTS To REGIONAL IONAL AND LOCAL BOARDS, COMMISSIONS, COMMITTEES AND SUBCOMMITTEES JUNE 229 2010 PAGE 2 Additionally, the list includes local committees and subcommittees that currently include members of the Council in ease the Council determines any changes are desired. The Council may not want to make changes to subcommittees since they tend to be project specific and could impact current progress. However, staff felt it would be helpful information in order to vier all existing assignments. Since the existing vacancies are all alternate assignments, the Council may Irish to consider reassignments at this time to better balance Council Member representation on the various boards/committees/commissions, specifically with regard to primary assignments. Based on her current work schedule and availability, Council Member Ray has expressed an interest in serving on one or more of the following boards, commissions, or c ommittees in the following capacities: Primary: • Economic vitality Corporation • south County Area Transit • risco /Halcyon Interchange Subcommittee mittee Tourism Committee California Joint Powers Insurance Authority Alternate: • Community Action Partnership • Zone 3 Dater Advisory Board • Recreation Center Subcommittee ALTERNATIVES: ES: The following alternatives are provided for the Council's consideration: Appoint Council Member Ray to those alternate positions vacated by former Council Member Arnold; - Review all board orr mittee ommission assignments and make reassignments as desired; R Make no appointments at this time; - Provide direction to staff. ADVANTAGES: Appointments to the vacant positions will provide full City representation on the various regional boards, commissions, committees and subcommittees that are currently listed on the appointments list. Agenda Item II.d. Page 2 CITY COUNCIL REVIEW II F COUNCIL APPOINTMENTS TMENTS T REGIONAL I AL AND LOCAL BOARDS, COMMISSIONS, COMMITTEES AND SUBCOMMITTEES JUNE 229 201 PAGE 3 DISADVANTAGES: No disadvantages are identified as long as the appointments ents reflect the desired representation by the City Council on these boards, rx missi n , committees and subcommittees. ENVIRONMENTAL REVIEW: : No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: TS: The Agenda was posted in front of City Hall on Thursday, June 1 , 201 . The Agenda and report were posted on the City's web site on Friday, June 18, 2010. No public comments were received. Attachment: 1. Appointments List Agenda Item II.d. Page 3 ATTACHMENT 1 CITY of ARROYO GRANDE CITY COUNCIL APPOINTMENTS To V ARIOUS BOARDS / COMMISSIONS / COMMITTEES December 9, Revised: 02/26/10; CITY COUNCIL REPRESENTATION To: PRIMARY ALTERNATE South county Area Transit (SCAT) Jim Guthrie (Meetings held quarterly on the third Wednesday; 3:30 PM; Arroyo Grande Council Chambers) Staff Representative: tive: city Manager Council of Governments/ Regional Transit Authority ( SLOCOG/RTA) Meetings normally held first Wednesday of each month; 8:30 AM Board of Supervisors Chambers, County Government Center) Staff Representative: Public Works Director /Community Development Director City Selection Committee (Mayors') (Enabling legislation requires the Mayor to be the primary representative) (Meets as needed; time varies; Board of Supervisors Chambers, County Govern- ment center) Staff Representative: Not Applicable South San Luis Obispo county Sanitation District SSLOCSD (Enabling legislation requires the Mayor to be the primary representative) (Meetings held first and third Wednesday of each month; :00 PM; o eano Community Services District Board Room) Staff Representative: Not Applicable Integrated Waste Management Authority Board I MA (Meetings held the second Wednesday of odd - numbered months; 1 :30 PM; Board of Supervisors Chambers, County Government Center) Staff Representative: community Development Director Tony Ferrara Tony Ferrara Tong Ferrara Chuck Fellow Chuck Fellows Joe Costel Joe Costello Jim Guthrie Agenda Item II.d. Page 4 CITY COUNCIL REPRESENTATION ESENTATION To: PRIMARY Y ALTER ATE Zone 3 Water Advisory Board Meetings held third Thursday of odd - numbered months, rotating between the South County agencies; 6:30 P Staff Representative: Public Works Director County Mater Resources Advisory Committee (WRAC) (Meetings held first Wednesday of each month; 1:30 PM; City /County Library Community Room, San Luis Obispo) Staff Representative: Public Forks Director Economic Vitality Corporation (EVC) (Meetings held fourth Wednesday of each month; 4:00 PM, Cannon Corp. 1050 Southwood Dr., San Luis Obispo) Staff Representative: City Manager/ Associate Planner Air Pollution Control District Board AP C D (Meetings held fourth Wednesday of odd - numbered months; 9:00 AM; Board of Supervisors Chambers, County Government Center) Staff Representative: Not Applicable Community Action Partnership (Meetings held third Thursday of each month; 5:09 PEA; EOC Board Room, 1030 Southwood Drive, Sari Luis Obispo Staff Representative: Parks, Recreation and Facilities Director Joe Costello Chuck Fellows Jim Guthrie Joe Costello Jinn Guthrie Jim Guthrie (No Alternate) Chuck F California Joint Powers Insurance Authority CJPIA (Meets once a year in July for Annual Board Meeting in La Palma, CA Staff Representatives: ntatives: City !Manager/ Human Resources Manager Jim uth rie Staff Representative Agenda Item II.d. Page 5 CITY COUNCIL REPRESENTATION To: PRIMARY ALTERNATE Fire oversight Committee (Meetings held second Friday of every other month; meeting time and location vary) Staff Representative: City Manager Joe Costello Tony Ferrara Audit Committee (Meets twice a year before and after Audit; council Chambers Conference Room; meeting time varies Staff Representative: Financial Services Director Homeless Services Coordinating council (Two Members (Meets monthly as scheduled time and location varies) Staff Representative: entative: city Manager Brico /Halcyon Interchange Subcommittee (Two Members) (Meets as needed; time varies; council Chambers Conference loom) Staff Representative: Public Works Director Tourism Committee (Two Members) (Chamber of Commerce will schedule Meeting dates, times and meeting location Staff Representatives: Associate Planner/ Parks, Recreation and Facilities Director Jim Guthrie Jim Guthrie Tony Ferrara Jim Guthrie Recreation center Subcommittee Tony Ferrara (Meets as necessary; time varies; Council Chambers conference Room) Staff Representatives: city [Manager/ Parks, Recreation and Facilities Director Joe Costello Chuck Fellows Agenda Item II.d. Page 6